VeriSign (VRSN) 10-Q 25 Jul 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	6 Months Ended
	Jun. 30, 2019	Jul. 19, 2019
Document And Entity Information [Abstract]
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	VRSN
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-3221585
Entity Address, Postal Zip Code	20190
Document Transition Report	false
Document Quarterly Report	true
Entity Registrant Name	VERISIGN INC/CA
Entity Central Index Key	0001014473
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Entity File Number	000-23593
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		118,371,848
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Address, Address Line One	12061 Bluemont Way,
Entity Address, City or Town	Reston,
Entity Address, State or Province	VA
City Area Code	703
Local Phone Number	948-3200
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 751,580	$ 357,415
Marketable securities	473,362	912,254
Other Assets, Current	70,440	47,365
Total current assets	1,295,382	1,317,034
Property and equipment, net	250,820	253,905
Goodwill	52,527	52,527
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	109,917	104,992
Deposits to acquire Intangible Assets	145,000	145,000
Other long-term assets	36,252	41,046
Total long-term assets	594,516	597,470
Total assets	1,889,898	1,914,504
Current liabilities:
Accounts payable and accrued liabilities	171,215	215,208
Deferred revenues	763,466	732,382
Total current liabilities	934,681	947,590
Long-term deferred revenues	286,143	285,720
Senior Notes	1,786,306	1,785,047
Other long-term liabilities	307,935	281,621
Total long-term liabilities	2,380,384	2,352,388
Total liabilities	3,315,065	3,299,978
Commitments and contingencies
Stockholders' deficit:
Preferred stock-par value $.001 per share	0	0
Common stock-par value $.001 per share	353	352
Additional paid-in capital	15,356,935	15,706,774
Accumulated deficit	(16,779,728)	(17,089,789)
Accumulated other comprehensive loss	(2,727)	(2,811)
Total stockholders' deficit	(1,425,167)	(1,385,474)
Total liabilities and stockholders' deficit	$ 1,889,898	$ 1,914,504

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, authorized shares	5,000	5,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized shares	1,000,000	1,000,000
Common Stock, Shares, Issued	352,952	352,325
Common stock, outstanding shares	118,548	120,037

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues	$ 306,289	$ 302,452	$ 612,697	$ 601,740
Costs and expenses:
Cost of revenues	44,066	47,365	89,570	95,517
Sales and marketing	12,399	16,569	22,918	33,844
Research and development	14,953	13,755	31,085	29,130
General and administrative	33,178	31,753	67,179	64,820
Total costs and expenses	104,596	109,442	210,752	223,311
Operating income	201,693	193,010	401,945	378,429
Interest expense	(22,635)	(28,792)	(45,266)	(69,580)
Non-operating income (loss), net	11,436	660	23,639	8,464
Income before income taxes	190,494	164,878	380,318	317,313
Income tax expense	(42,960)	(36,527)	(70,257)	(54,699)
Net Income	147,534	128,351	310,061	262,614
Other comprehensive income (loss)	35	17	84	260
Comprehensive Income	$ 147,569	$ 128,368	$ 310,145	$ 262,874
Basic income (loss) per share
Net Income	$ 1.24	$ 1.13	$ 2.60	$ 2.49
Diluted income (loss) per share
Net Income	$ 1.24	$ 1.04	$ 2.59	$ 2.13
Shares used to compute net income per share
Basic	118,965	113,936	119,359	105,639
Diluted	119,361	123,200	119,837	123,399

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Deficit Statement - USD ($) $ in Thousands	Total	Accumulated Deficit [Member]	AOCI Attributable to Parent [Member]	Additional Paid-in Capital [Member]	Common Stock [Member]
Stockholders' Deficit	$ (1,260,271)	$ (17,694,790)	$ (2,941)	$ 16,437,135	$ 325
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt				(159,618)
Stock Issued During Period, Value, Conversion of Convertible Securities					26
Stock-based compensation expense				27,274
Stock Issued During Period, Value, Employee Stock Purchase Plan				7,810	1
Stock Repurchased During Period, Value				(281,597)
Net Income	262,614	262,614
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification		22,512
Other Comprehensive Income (Loss), Net of Tax	260		260
Stockholders' Deficit	(1,234,734)	(17,538,015)	(2,698)	16,305,653	326
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt				(159,618)
Stock Issued During Period, Value, Conversion of Convertible Securities					26
Stock-based compensation expense				13,825
Stock Issued During Period, Value, Employee Stock Purchase Plan				0	0
Stock Repurchased During Period, Value				(128,856)
Net Income		128,351
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification		0
Other Comprehensive Income (Loss), Net of Tax	17		17
Stockholders' Deficit	(1,380,989)	(17,409,664)	(2,681)	16,031,004	352
Stockholders' Deficit	(1,385,474)	(17,089,789)	(2,811)	15,706,774	352
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt				0
Stock Issued During Period, Value, Conversion of Convertible Securities					0
Stock-based compensation expense				26,441
Stock Issued During Period, Value, Employee Stock Purchase Plan				8,252	1
Stock Repurchased During Period, Value				(384,532)
Net Income	310,061	310,061
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification		0
Other Comprehensive Income (Loss), Net of Tax	84		84
Stockholders' Deficit	(1,406,129)	(16,927,262)	(2,762)	15,523,542	353
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt				0
Stock Issued During Period, Value, Conversion of Convertible Securities					0
Stock-based compensation expense				13,623
Stock Issued During Period, Value, Employee Stock Purchase Plan				0	0
Stock Repurchased During Period, Value				(180,230)
Net Income		147,534
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification		0
Other Comprehensive Income (Loss), Net of Tax	35		35
Stockholders' Deficit	$ (1,425,167)	$ (16,779,728)	$ (2,727)	$ 15,356,935	$ 353

Condensed Consolidated Statem_3

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net income	$ 310,061	$ 262,614
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment	22,884	24,195
Stock-based compensation	25,617	26,276
Accretion (Amortization) of Discounts and Premiums, Investments	(5,679)	(7,686)
Other Noncash Income (Expense)	(894)	(13,452)
Changes in operating assets and liabilities
Other assets	(10,254)	(7,605)
Accounts payable and accrued liabilities	(39,351)	(20,892)
Deferred revenues	31,857	27,296
Deferred Income Taxes	16,146	(25,844)
Net cash provided by operating activities	352,175	291,806
Net Cash Provided by (Used in) Investing Activities [Abstract]
Proceeds from maturities and sales of marketable securities	1,466,303	2,634,376
Purchases of marketable securities	(1,021,741)	(1,592,403)
Purchases of property and equipment	(20,189)	(18,669)
Other investing activities	(6,311)	(160)
Net cash used in investing activities	418,062	1,023,144
Cash flows from financing activities:
Repayments of Subordinated Debt	0	(1,250,009)
Proceeds from employee stock purchase plans	8,253	7,811
Repurchases of common stock	(384,532)	(281,597)
Net cash used in financing activities	(376,279)	(1,523,795)
Effect of exchange rate changes on cash and cash equivalents	243	(590)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	394,201	(209,435)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period	366,753	475,139
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period	760,954	265,704
Supplemental cash flow disclosures:
Cash paid for interest	43,708	73,971
Cash paid for income taxes, net of refunds received	$ 62,214	$ 85,597

Basis Of Presentation

Basis Of Presentation	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis Of Presentation	Basis of Presentation Interim Financial Statements The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by VeriSign, Inc. (“Verisign” or the “Company”) in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, do not include all information and notes normally provided in audited financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and other adjustments) considered necessary for a fair presentation have been included. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for any other interim period or for a full fiscal year. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes contained in Verisign’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “ 2018 Form 10-K”) filed with the SEC on February 15, 2019. Reclassifications Certain reclassifications have been made to prior period amounts to conform to current period presentation. Such reclassifications have no effect on net income as previously reported. Adoption of New Accounting Standards Effective January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases , and several related amendments, issued by the Financial Accounting Standards Board, collectively codified under Accounting Standards Codification (“ASC”) 842, Leases . ASC 842 requires most operating leases to be reported on the balance sheet as a lease liability and a right-of-use asset. This standard was applied as of the effective date of January 1, 2019, and therefore prior period amounts were not adjusted. The adoption of ASC 842 did not have a material impact on the Company’s consolidated financial statements.

Financial Instruments

Financial Instruments	6 Months Ended
	Jun. 30, 2019
Financial Instruments, Owned, at Fair Value [Abstract]
Financial Instruments	Cash, Cash Equivalents, and Marketable Securities The following table summarizes the Company’s cash, cash equivalents, and marketable securities and the fair value categorization of the financial instruments measured at fair value on a recurring basis: June 30, December 31, 2019 2018 (In thousands) Cash $ 26,451 $ 37,190 Time deposits 4,134 3,810 Money market funds (Level 1) 104,275 120,832 Debt securities issued by the U.S. Treasury (Level 1) 1,099,456 1,117,175 Total $ 1,234,316 $ 1,279,007 Cash and cash equivalents $ 751,580 $ 357,415 Restricted cash (included in Other long-term assets) 9,374 9,338 Total Cash, cash equivalents, and restricted cash 760,954 366,753 Marketable securities 473,362 912,254 Total $ 1,234,316 $ 1,279,007 The fair value of the debt securities held as of June 30, 2019 was $1.10 billion , including less than $0.1 million of gross and net unrealized gains. All of the debt securities held as of June 30, 2019 are scheduled to mature in less than one year. Fair Value Measurements The fair value of the Company’s investments in money market funds approximates their face value. Such instruments are included in Cash and cash equivalents. The fair value of the debt securities consisting of U.S. Treasury bills is based on their quoted market prices. Debt securities purchased with original maturities in excess of three months are included in Marketable securities. The fair value of all of these financial instruments are classified as Level 1 in the fair value hierarchy. The Company’s other financial instruments include cash, accounts receivable, restricted cash, and accounts payable. As of June 30, 2019 , the carrying value of these financial instruments approximated their fair value. The fair values of the senior notes due 2023, 2025, and 2027 were $763.2 million , $537.2 million , and $576.6 million , respectively, as of June 30, 2019

Other Balance Sheet Items

Other Balance Sheet Items	6 Months Ended
	Jun. 30, 2019
Balance Sheet Related Disclosures [Abstract]
Other Balance Sheet Items	Other Balance Sheet Items Other Current Assets Other current assets consist of the following: June 30, December 31, 2019 2018 (In thousands) Prepaid registry fees $ 21,739 $ 20,696 Prepaid expenses 22,367 14,109 Contingent consideration receivable 14,721 — Accounts receivable, net 5,257 6,029 Income taxes receivable 4,656 4,451 Other 1,700 2,080 Total other current assets $ 70,440 $ 47,365 Other Long-Term Assets Other long-term assets consist of the following: June 30, December 31, 2019 2018 (In thousands) Restricted cash $ 9,374 $ 9,338 Operating lease right-of-use asset 9,139 — Long-term prepaid registry fees 7,884 7,779 Other tax receivable 5,673 5,673 Contingent consideration receivable — 14,721 Other 4,182 3,535 Total other long-term assets $ 36,252 $ 41,046 As a result of the adoption of ASC 842, Leases, in 2019, the Company recorded right-of-use assets for operating leases of $9.1 million as of June 30, 2019 . The current and long-term prepaid registry fees in the tables above relate to the fees the Company pays to ICANN for each annual increment of . com domain name registrations and renewals which are deferred and amortized over the domain name registration term. The amount of prepaid registry fees as of June 30, 2019 reflects amortization of $8.6 million and $17.1 million during the three and six months ended June 30, 2019 which was recorded in Cost of Revenues. The contingent consideration receivable in the tables above related to the estimated amount due from Neustar, Inc. (“Neustar”) in the first quarter of 2020, was reclassified from Other long-term assets as of December 31, 2018 to Other current assets as of June 30, 2019 . Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consist of the following: June 30, December 31, 2019 2018 (In thousands) Accounts payable $ 8,018 $ 10,445 Customer deposits, net 51,343 57,025 Accrued employee compensation 34,578 54,746 Interest payable 24,469 24,318 Accrued registry fees 12,834 11,029 Taxes payable and other tax liabilities 12,073 18,961 Payables to buyer 3,623 9,875 Current operating lease liability 3,880 — Other accrued liabilities 20,397 28,809 Total accounts payable and accrued liabilities $ 171,215 $ 215,208 Customer deposits primarily relate to advance payments to cover domain name registration activity by registrars. The balance of customer deposits can fluctuate significantly due to the timing of payments from large customers. Accrued employee compensation primarily consists of liabilities for employee leave, salaries, payroll taxes, employee contributions to the employee stock purchase plan, and incentive compensation. Accrued employee incentive compensation as of December 31, 2018 , was paid during the six months ended June 30, 2019 . Interest payable varies at each period-end based on the payment due dates for each Senior Note issuance. Payables to buyer relate to amounts due to Neustar for estimated collections from Security Services customers of any billings after the closing date and until the customer contracts are assigned to Neustar. Other liabilities include amounts payable to registrars related to rebates and marketing programs as well as other miscellaneous liabilities. These amounts may vary from period to period due to the timing of payments. Long-term tax and other liabilities June 30, December 31, 2019 2018 (In thousands) Long-term tax liabilities $ 302,692 $ 281,621 Long-term operating lease liability 5,243 — Long-term tax and other liabilities $ 307,935 $ 281,621 Long-term tax liabilities as of June 30, 2019 reflects the reclassification of unrecognized tax benefits during the six months ended June 30, 2019 , as deferred tax assets related to tax credits and loss carryforwards are no longer available to offset the liabilities. This was partially offset by a $7.9 million reclassification of a portion of the transition tax liability on accumulated foreign earnings from non-current to current as of June 30, 2019. The current and long-term lease liabilities as of June 30, 2019 in the tables above relate to the lease obligations recorded as a result of the adoption of ASC 842, Leases , during 2019.

Stockholders' Deficit

Stockholders' Deficit	6 Months Ended
	Jun. 30, 2019
Stockholders' Equity Note [Abstract]
Stockholders' (Deficit) Equity	Stockholders’ Deficit Effective February 7, 2019, the Company’s Board of Directors authorized the repurchase of the Company’s common stock in the amount of approximately $ 602.9 million , in addition to the $ 397.1 million remaining available for repurchase under the Company’s share repurchase program, for a total repurchase authorization of up to $1.0 billion under the share repurchase program. The share repurchase program has no expiration date. Purchases made under the program can be made through open market transactions, block purchases, accelerated share repurchase agreements or other negotiated transactions. During the three and six months ended June 30, 2019 , the Company repurchased 0.9 million and 1.9 million shares of its common stock, respectively, at an average stock price of $195.27 and $182.10 , respectively. The aggregate cost of the repurchases in the three and six months ended June 30, 2019 was $175.0 million and $349.9 million , respectively. As of June 30, 2019 , there was approximately $716.1 million remaining available for future share repurchases under the share repurchase program. During the six months ended June 30, 2019 , the Company placed 0.2 million shares, at an average stock price of $177.41 , and for an aggregate cost of $34.6 million , into treasury stock for purposes related to tax withholding upon vesting of Restricted Stock Units (“RSUs”). Since inception, the Company has repurchased 234.4 million shares of its common stock for an aggregate cost of $9.80 billion , which is presented as a reduction of Additional paid-in capital.

Calculation Of Net Income Per S

Calculation Of Net Income Per Share	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Calculation Of Net Income Per Share Attributable To Verisign Stockholders	Calculation of Earnings per Share The following table presents the computation of weighted-average shares used in the calculation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Weighted-average shares of common stock outstanding 118,965 113,936 119,359 105,639 Weighted-average potential shares of common stock outstanding: Conversion spread related to Subordinated Convertible Debentures — 8,776 — 17,178 Unvested RSUs and ESPP 396 488 478 582 Shares used to compute diluted earnings per share 119,361 123,200 119,837 123,399 The Company settled the Subordinated Convertible Debentures in May 2018. The calculation of diluted weighted average shares outstanding, excludes potentially dilutive securities, the effect of which would have been anti-dilutive, as well as performance-based RSUs granted by the Company for which the relevant performance criteria have not been achieved. The number of potential shares excluded from the calculation was not significant in any period presented.

Revenue (Notes)

Revenue (Notes)	6 Months Ended
	Jun. 30, 2019
Revenue Recognition [Abstract]
Revenue from Contract with Customer [Table Text Block]	Revenues The Company generates revenues in the U.S.; Europe, the Middle East and Africa (“EMEA”); China; and certain other countries, including, but not limited to Canada, Australia, and Japan. The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) U.S. $ 191,848 $ 187,818 $ 384,003 $ 373,001 EMEA 51,595 53,367 103,741 106,784 China 29,448 26,550 57,690 52,408 Other 33,398 34,717 67,263 69,547 Total revenues $ 306,289 $ 302,452 $ 612,697 $ 601,740 Revenues for the Company’s Registry Services business are attributed to the country of domicile and the respective regions in which registrars are located; however, this may differ from the regions where the registrars operate or where registrants are located. Revenues for each region may be impacted by registrars reincorporating, relocating, or from acquisitions or changes in affiliations of resellers. Revenues for each region may also be impacted by registrars domiciled in one region, registering domain names in another region. Deferred Revenues As payment for domain name registrations and renewals are due in advance of our performance, we record these amounts as deferred revenues. The increase in the deferred revenues balance for the six months ended June 30, 2019 was primarily driven by amounts billed in the first half of 2019 for domain name registrations and renewals to be recognized as revenues in future periods, offset by refunds for domain name renewals deleted during the 45-day grace period, and $ 488.8 million of revenues recognized that were included in the deferred revenues balance at the beginning of the period. The balance of deferred revenues as of June 30, 2019 represents our aggregate remaining performance obligations. Amounts included in current deferred revenues are all expected to be recognized in revenues within 12 months, except for a portion of deferred revenues that relates to domain name renewals that are deleted in the 45-day grace period following the transaction. The long-term deferred revenues amounts will be recognized in revenues over several years and in some cases up to 10 years. Historically, we have experienced a higher volume of domain name transactions, particularly renewals, in the first quarter of the year compared to other quarters. Our quarterly revenues do not reflect these seasonal patterns because the preponderance of our revenues for each quarterly period is provided by the ratable recognition of our deferred revenues balance. The effect of this seasonality has historically resulted in the largest amount of growth in our deferred revenues balance occurring during the first quarter of the year compared to the other quarters.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]
Stock-Based Compensation	Stock-based Compensation Stock-based compensation is classified in the Condensed Consolidated Statements of Comprehensive Income in the same expense line items as cash compensation. The following table presents the classification of stock-based compensation: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Cost of revenues $ 1,741 $ 1,818 $ 3,339 $ 3,428 Sales and marketing 1,019 1,494 2,002 2,942 Research and development 1,642 1,688 3,231 3,409 General and administrative 8,753 8,298 17,045 16,497 Total stock-based compensation expense $ 13,155 $ 13,298 $ 25,617 $ 26,276 The following table presents the nature of the Company’s total stock-based compensation: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) RSUs $ 9,059 $ 9,406 $ 17,668 $ 18,693 Performance-based RSUs 3,294 3,360 6,332 6,473 ESPP 1,270 1,059 2,441 2,109 Capitalization (included in Property and equipment, net) (468 ) (527 ) (824 ) (999 ) Total stock-based compensation expense $ 13,155 $ 13,298 $ 25,617 $ 26,276

Interest Expense

Interest Expense	6 Months Ended
	Jun. 30, 2019
Interest Expense [Abstract]
Interest Expense	Interest Expense The following table presents the components of the Company’s Interest expense: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Contractual interest on Senior Notes $ 21,766 $ 21,766 $ 43,532 $ 43,531 Contractual interest on Subordinated Convertible Debentures — 5,067 — 20,015 Amortization of debt discount on Subordinated Convertible Debentures — 1,075 — 4,236 Amortization of debt issuance costs and other interest expense 869 884 1,734 1,798 Total interest expense $ 22,635 $ 28,792 $ 45,266 $ 69,580 The Company settled its Subordinated Convertible Debentures in May 2018.

Non-operating (loss) income

Non-operating (loss) income	6 Months Ended
	Jun. 30, 2019
Non-operating (loss) income, net [Abstract]
Other Income and Other Expense Disclosure [Text Block]	Non-operating Income, Net The following table presents the components of Non-operating income, net: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Interest income $ 7,228 $ 6,583 $ 14,588 $ 14,071 Transition services income 4,050 — 8,100 — Loss on extinguishment of Subordinated Convertible Debentures — (6,554 ) — (6,554 ) Other, net 158 631 951 947 Total non-operating income, net $ 11,436 $ 660 $ 23,639 $ 8,464 During the three and six months ended June 30, 2019, the Company recognized $4.1 million and $8.1 million , respectively, of income from the transition services provided to Neustar in connection with the sale of customer contracts of the Security Services business. In the second quarter of 2018, the Company recognized a $6.6 million loss on the extinguishment of the Subordinated Convertible Debentures.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The following table presents Income tax expense and the effective tax rate: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Dollars in thousands) Income tax expense $ 42,960 $ 36,527 $ 70,257 $ 54,699 Effective tax rate 23 % 22 % 18 % 17 % The effective tax rate for each of the periods in the table above differed from the statutory federal rate of 21% due to a lower foreign effective tax rate, offset by state income taxes and U.S. taxes on foreign earnings, net of foreign tax credits. Additionally, income tax expense for the six months ended June 30, 2019 was reduced by $ 12.7 million of excess tax benefits related to stock-based compensation. Income tax expense for the six months ended June 30, 2018 was reduced by $12.1 million of tax benefits recognized related to changes to provisional amounts previously recognized for the impact of the 2017 Tax Cuts and Jobs Act (“Tax Act”), and $ 6.0 million of excess tax benefits related to stock-based compensation. During the six months ended June 30, 2019, the Company completed the repatriation of $ 249.0 million of cash held by foreign subsidiaries, net of $ 13.1 million of foreign withholding taxes which were previously accrued in 2018.

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2019
Financial Instruments, Owned, at Fair Value [Abstract]
Cash, Cash Equivalents, And Marketable Securities	The following table summarizes the Company’s cash, cash equivalents, and marketable securities and the fair value categorization of the financial instruments measured at fair value on a recurring basis: June 30, December 31, 2019 2018 (In thousands) Cash $ 26,451 $ 37,190 Time deposits 4,134 3,810 Money market funds (Level 1) 104,275 120,832 Debt securities issued by the U.S. Treasury (Level 1) 1,099,456 1,117,175 Total $ 1,234,316 $ 1,279,007 Cash and cash equivalents $ 751,580 $ 357,415 Restricted cash (included in Other long-term assets) 9,374 9,338 Total Cash, cash equivalents, and restricted cash 760,954 366,753 Marketable securities 473,362 912,254 Total $ 1,234,316 $ 1,279,007

Other Balance Sheet Items (Tabl

Other Balance Sheet Items (Tables)	6 Months Ended
	Jun. 30, 2019
Balance Sheet Related Disclosures [Abstract]
Other Current Assets	Other current assets consist of the following: June 30, December 31, 2019 2018 (In thousands) Prepaid registry fees $ 21,739 $ 20,696 Prepaid expenses 22,367 14,109 Contingent consideration receivable 14,721 — Accounts receivable, net 5,257 6,029 Income taxes receivable 4,656 4,451 Other 1,700 2,080 Total other current assets $ 70,440 $ 47,365
Schedule of Other Assets, Noncurrent [Table Text Block]	Other long-term assets consist of the following: June 30, December 31, 2019 2018 (In thousands) Restricted cash $ 9,374 $ 9,338 Operating lease right-of-use asset 9,139 — Long-term prepaid registry fees 7,884 7,779 Other tax receivable 5,673 5,673 Contingent consideration receivable — 14,721 Other 4,182 3,535 Total other long-term assets $ 36,252 $ 41,046
Components Of Accounts Payable And Accrued Liabilities	Accounts payable and accrued liabilities consist of the following: June 30, December 31, 2019 2018 (In thousands) Accounts payable $ 8,018 $ 10,445 Customer deposits, net 51,343 57,025 Accrued employee compensation 34,578 54,746 Interest payable 24,469 24,318 Accrued registry fees 12,834 11,029 Taxes payable and other tax liabilities 12,073 18,961 Payables to buyer 3,623 9,875 Current operating lease liability 3,880 — Other accrued liabilities 20,397 28,809 Total accounts payable and accrued liabilities $ 171,215 $ 215,208
Other Noncurrent Liabilities [Table Text Block]	Long-term tax and other liabilities June 30, December 31, 2019 2018 (In thousands) Long-term tax liabilities $ 302,692 $ 281,621 Long-term operating lease liability 5,243 — Long-term tax and other liabilities $ 307,935 $ 281,621

Calculation Of Net Income Per_2

Calculation Of Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Schedule of Weighted Average Number of Shares [Table Text Block]	The following table presents the computation of weighted-average shares used in the calculation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Weighted-average shares of common stock outstanding 118,965 113,936 119,359 105,639 Weighted-average potential shares of common stock outstanding: Conversion spread related to Subordinated Convertible Debentures — 8,776 — 17,178 Unvested RSUs and ESPP 396 488 478 582 Shares used to compute diluted earnings per share 119,361 123,200 119,837 123,399

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2019
Revenue Recognition [Abstract]
Disaggregation of Revenue [Table Text Block]	The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) U.S. $ 191,848 $ 187,818 $ 384,003 $ 373,001 EMEA 51,595 53,367 103,741 106,784 China 29,448 26,550 57,690 52,408 Other 33,398 34,717 67,263 69,547 Total revenues $ 306,289 $ 302,452 $ 612,697 $ 601,740

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]
Classification Of Stock-Based Compensation	The following table presents the classification of stock-based compensation: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Cost of revenues $ 1,741 $ 1,818 $ 3,339 $ 3,428 Sales and marketing 1,019 1,494 2,002 2,942 Research and development 1,642 1,688 3,231 3,409 General and administrative 8,753 8,298 17,045 16,497 Total stock-based compensation expense $ 13,155 $ 13,298 $ 25,617 $ 26,276
Nature Of Total Stock-Based Compensation	The following table presents the nature of the Company’s total stock-based compensation: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) RSUs $ 9,059 $ 9,406 $ 17,668 $ 18,693 Performance-based RSUs 3,294 3,360 6,332 6,473 ESPP 1,270 1,059 2,441 2,109 Capitalization (included in Property and equipment, net) (468 ) (527 ) (824 ) (999 ) Total stock-based compensation expense $ 13,155 $ 13,298 $ 25,617 $ 26,276

Interest Expense (Tables)

Interest Expense (Tables)	6 Months Ended
	Jun. 30, 2019
Interest Expense [Abstract]
Interest Expense Schedule	The following table presents the components of the Company’s Interest expense: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Contractual interest on Senior Notes $ 21,766 $ 21,766 $ 43,532 $ 43,531 Contractual interest on Subordinated Convertible Debentures — 5,067 — 20,015 Amortization of debt discount on Subordinated Convertible Debentures — 1,075 — 4,236 Amortization of debt issuance costs and other interest expense 869 884 1,734 1,798 Total interest expense $ 22,635 $ 28,792 $ 45,266 $ 69,580

Non-operating (loss) income (Ta

Non-operating (loss) income (Tables)	6 Months Ended
	Jun. 30, 2019
Non-operating (loss) income, net [Abstract]
Schedule of Other Nonoperating Income (Expense) [Table Text Block]	The following table presents the components of Non-operating income, net: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Interest income $ 7,228 $ 6,583 $ 14,588 $ 14,071 Transition services income 4,050 — 8,100 — Loss on extinguishment of Subordinated Convertible Debentures — (6,554 ) — (6,554 ) Other, net 158 631 951 947 Total non-operating income, net $ 11,436 $ 660 $ 23,639 $ 8,464

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Tax Expense From Continuing Operations And The Effective Tax Rate	The following table presents Income tax expense and the effective tax rate: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Dollars in thousands) Income tax expense $ 42,960 $ 36,527 $ 70,257 $ 54,699 Effective tax rate 23 % 22 % 18 % 17 %

Financial Instruments (Details)

Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Cash	$ 26,451	$ 37,190
Time deposits	4,134	3,810
Money Market Funds (level 1)	104,275	120,832
Financial Instruments, Owned, US Government and Agency Obligations, at Fair Value	1,099,456	1,117,175
Total	1,234,316	1,279,007
Included in Cash and cash equivalents	751,580	357,415
Restricted Cash Equivalents, Noncurrent	9,374	9,338
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	760,954	366,753	$ 265,704	$ 475,139
Included in Marketable securities	$ 473,362	$ 912,254

Financial Instruments Financial

Financial Instruments Financial Instruments narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Financial Instruments, Owned, US Government and Agency Obligations, at Fair Value	$ 1,099,456	$ 1,117,175
Debt securities gross unrealized gains	100
Debt instrument fair value senior notes 2023	763,200
Debt instrument fair value senior notes 2025	537,200
Debt instrument fair value senior notes 2027	$ 576,600

Other Balance Sheet Items (Othe

Other Balance Sheet Items (Other Current Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Prepaid registry fees, current	$ 21,739	$ 20,696
Estimated contingent consideration receivable	14,721	0
Prepaid expenses	22,367	14,109
Accounts Receivable, Net	5,257	6,029
Income Taxes Receivable, Current	4,656	4,451
Other Assets, Miscellaneous, Current	1,700	2,080
Other Assets, Current	$ 70,440	$ 47,365

Other Balance Sheet Items Other

Other Balance Sheet Items Other Balance Sheet Items (Other long-term assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Restricted Cash	$ 9,374	$ 9,338
Operating Lease, Right-of-Use Asset	9,139	0
Prepaid registry fees, noncurent	7,884	7,779
Restricted Cash and Investments, Noncurrent	5,673	5,673
Nontrade Receivables, Noncurrent	0	14,721
Other Assets, Miscellaneous, Noncurrent	4,182	3,535
Other Assets, Noncurrent	$ 36,252	$ 41,046

Other Balance Sheet Items (Comp

Other Balance Sheet Items (Components Of Accounts Payable And Accrued Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Accounts payable	$ 8,018	$ 10,445
Accrued employee compensation	34,578	54,746
Taxes Payable	12,073	18,961
Interest Payable	24,469	24,318
Deposits, net	51,343	57,025
accrued fees	12,834	11,029
Due to buyer	3,623	9,875
Operating Lease, Liability, Current	3,880	0
Other accrued liabilities	20,397	28,809
Total accounts payable and accrued liabilities	$ 171,215	$ 215,208

Other Balance Sheet Items Oth_2

Other Balance Sheet Items Other Balance Sheet Items (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Tax Cuts and Jobs Act, Transition Tax for Accumulated Foreign Earnings, Liability, Current	$ 7,900	$ 7,900
Operating Lease, Right-of-Use Asset	9,139	9,139	$ 0
Amortization of Other Deferred Charges	$ 8,600	$ 17,100

Other Balance Sheet Items Oth_3

Other Balance Sheet Items Other Balance Sheet Items (Long-term tax and other liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Long-term tax and other liabilities Disclosure [Abstract]
Deferred Tax and Other Liabilities, Noncurrent	$ 302,692	$ 281,621
Operating Lease, Liability, Noncurrent	5,243	0
Other long-term liabilities	$ 307,935	$ 281,621

Stockholders' Deficit (Narrativ

Stockholders' Deficit (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Feb. 07, 2019
Treasury Stock Repurchase Programs [Line Items]
Additional share repurchase amount authorized		$ 602.9
Remaining common stock available for repurchase	$ 716.1	$ 716.1	$ 397.1
Common stock, held in treasury	234.4	234.4
Common stock repurchased	$ 9,800	$ 9,800
Share Buyback Program [Member]
Treasury Stock Repurchase Programs [Line Items]
Common stock authorized to repurchase			$ 1,000
Common stock repurchase, share	0.9	1.9
Average stock price	$ 195.27	$ 182.10
Aggregate cost of share	$ 175	$ 349.9
Restricted Stock Units [Member]
Treasury Stock Repurchase Programs [Line Items]
Common stock repurchase, share		0.2
Average stock price		$ 177.41
Aggregate cost of share		$ 34.6

Calculation Of Net Income Per_3

Calculation Of Net Income Per Share (Weighted-Average Shares Used In Calculation Of Basic And Diluted EPS) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share [Abstract]
Weighted-average number of common shares outstanding	118,965	113,936	119,359	105,639
Conversion spread related to Convertible Debentures	0	8,776	0	17,178
Unvested RSUs and ESPP	396	488	478	582
Shares used to compute diluted net income per share	119,361	123,200	119,837	123,399

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Revenues	$ 306,289	$ 302,452	$ 612,697	$ 601,740
US [Member]
Disaggregation of Revenue [Line Items]
Revenues	191,848	187,818	384,003	373,001
EMEA [Member]
Disaggregation of Revenue [Line Items]
Revenues	51,595	53,367	103,741	106,784
China [Member]
Disaggregation of Revenue [Line Items]
Revenues	29,448	26,550	57,690	52,408
Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 33,398	$ 34,717	$ 67,263	$ 69,547

Revenue Revenue (Narrative deta

Revenue Revenue (Narrative detail) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2019USD ($)
Revenue Recognition and Deferred Revenue [Abstract]
Deferred Revenue, Revenue Recognized	$ 488.8

Stock-Based Compensation (Class

Stock-Based Compensation (Classification Of Stock-Based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 13,155	$ 13,298	$ 25,617	$ 26,276
Cost Of Revenues [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	1,741	1,818	3,339	3,428
Sales And Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	1,019	1,494	2,002	2,942
Research And Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	1,642	1,688	3,231	3,409
General And Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 8,753	$ 8,298	$ 17,045	$ 16,497

Stock-Based Compensation (Natur

Stock-Based Compensation (Nature Of Total Stock-Based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Amount Capitalized	$ (468)	$ (527)	$ (824)	$ (999)
Stock-based compensation	13,155	13,298	25,617	26,276
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	9,059	9,406	17,668	18,693
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	3,294	3,360	6,332	6,473
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 1,270	$ 1,059	$ 2,441	$ 2,109

Interest Expense (Interest Expe

Interest Expense (Interest Expense Schedule) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Interest Expense [Abstract]
Contractual interest on Convertible Debentures	$ 21,766	$ 21,766	$ 43,532	$ 43,531
Contractual interest on Notes	0	5,067	0	20,015
Amortization of debt discount on the Convertible Debentures	0	1,075	0	4,236
Credit facility and other interest expense	869	884	1,734	1,798
Total interest expense	$ 22,635	$ 28,792	$ 45,266	$ 69,580

Non-operating (loss) income (De

Non-operating (loss) income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Non-operating (loss) income, net [Abstract]
Interest Income	$ 7,228	$ 6,583	$ 14,588	$ 14,071
income from transition services	4,050	0	8,100	0
Gain (Loss) on Extinguishment of Debt	0	(6,554)	0	(6,554)
Other Nonoperating Income (Expense)	158	631	951	947
Nonoperating (loss) Income	$ 11,436	$ 660	$ 23,639	$ 8,464

Non-operating (loss) income Nar

Non-operating (loss) income Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Non-Operating (loss) income, net narrative [Abstract]
income from transition services	$ 4,050	$ 0	$ 8,100	$ 0
Gain (Loss) on Extinguishment of Debt	$ 0	$ 6,554	$ 0	$ 6,554

Income Taxes (Income Tax Expens

Income Taxes (Income Tax Expense From Continuing Operations And Effective Tax Rate) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income tax expense from continuing operations	$ 42,960	$ 36,527	$ 70,257	$ 54,699
Effective tax rate	23.00%	22.00%	18.00%	17.00%

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Percent	23.00%	22.00%	18.00%	17.00%
Effective Income Tax Rate Reconciliation, Tax Expense (Benefit), Share-based Payment Arrangement, Amount	$ 12.7	$ 6
Tax Cuts and Jobs Act, Income Tax Expense (Benefit)				$ 12.1
Statutory federal rate			21.00%
Foreign Earnings Repatriated			$ 249
foreign withholding tax			$ 13.1