Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 04, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | AKAMAI TECHNOLOGIES INC | |
Entity Central Index Key | 1,086,222 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 172,873,380 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 522,319 | $ 324,169 |
Marketable securities | 322,750 | 512,849 |
Accounts receivable, net of reserves of $1,134 and $6,145 at March 31, 2017, and December 31, 2016, respectively | 400,792 | 368,596 |
Prepaid expenses and other current assets | 152,600 | 104,303 |
Total current assets | 1,398,461 | 1,309,917 |
Property and equipment, net | 824,724 | 801,017 |
Marketable securities | 739,065 | 779,311 |
Goodwill | 1,229,504 | 1,228,503 |
Acquired intangible assets, net | 141,894 | 149,463 |
Deferred income tax assets | 7,332 | 8,982 |
Other assets | 109,015 | 95,953 |
Total assets | 4,449,995 | 4,373,146 |
Current liabilities: | ||
Accounts payable | 90,179 | 76,120 |
Accrued expenses | 218,028 | 238,777 |
Deferred revenue | 63,434 | 52,972 |
Other current liabilities | 10,235 | 6,719 |
Total current liabilities | 381,876 | 374,588 |
Deferred revenue | 4,505 | 3,758 |
Deferred income tax liabilities | 39,902 | 11,652 |
Convertible senior notes | 645,719 | 640,087 |
Other liabilities | 119,447 | 118,691 |
Total liabilities | 1,191,449 | 1,148,776 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 5,000,000 shares authorized; 700,000 shares designated as Series A Junior Participating Preferred Stock; no shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value; 700,000,000 shares authorized; 174,290,998 shares issued and 173,189,385 shares outstanding at March 31, 2017, and 173,254,797 shares issued and outstanding at December 31, 2016 | 1,743 | 1,733 |
Additional paid-in capital | 4,254,982 | 4,239,588 |
Accumulated other comprehensive loss | (45,913) | (56,222) |
Treasury stock, at cost, 1,101,613 shares at March 31, 2017, and no shares at December 31, 2016 | (72,467) | 0 |
Accumulated deficit | (879,799) | (960,729) |
Total stockholders’ equity | 3,258,546 | 3,224,370 |
Total liabilities and stockholders’ equity | $ 4,449,995 | $ 4,373,146 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable reserve | $ 1,134 | $ 6,145 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares designated as Series A Junior Participating Preferred Stock | 700,000 | 700,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 700,000,000 | 700,000,000 |
Common stock, shares issued | 174,290,998 | 173,254,797 |
Common stock, shares outstanding | 173,189,385 | 173,254,797 |
Treasury stock, shares | 1,101,613 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Revenue | $ 609,237 | $ 567,725 |
Costs and operating expenses: | ||
Cost of revenue (exclusive of amortization of acquired intangible assets shown below) | 205,703 | 194,736 |
Research and development | 52,162 | 40,842 |
Sales and marketing | 113,566 | 102,211 |
General and administrative | 115,009 | 102,283 |
Amortization of acquired intangible assets | 7,569 | 6,716 |
Restructuring charges | 0 | 6,818 |
Total costs and operating expenses | 494,009 | 453,606 |
Income from operations | 115,228 | 114,119 |
Interest income | 4,624 | 3,320 |
Interest expense | (4,597) | (4,653) |
Other expense, net | (684) | (189) |
Income before provision for income taxes | 114,571 | 112,597 |
Provision for income taxes | 33,641 | 37,739 |
Net income | $ 80,930 | $ 74,858 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.47 | $ 0.42 |
Diluted (in dollars per share) | $ 0.46 | $ 0.42 |
Shares used in per share calculations: | ||
Basic (in shares) | 173,158 | 176,403 |
Diluted (in shares) | 175,171 | 177,539 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 80,930 | $ 74,858 |
Other comprehensive income: | ||
Foreign currency translation adjustments | 9,499 | 9,653 |
Change in unrealized gain on investments, net of income tax provision of $488 and $1,783 for the three months ended March 31, 2017 and 2016, respectively | 810 | 3,008 |
Other comprehensive income | 10,309 | 12,661 |
Comprehensive income | $ 91,239 | $ 87,519 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Benefit (provision) on change in unrealized gain (loss) on investments, net | $ (488) | $ (1,783) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 80,930 | $ 74,858 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 86,533 | 80,669 |
Stock-based compensation | 38,986 | 31,741 |
Provision for deferred income taxes | 31,972 | 1,072 |
Amortization of debt discount and issuance costs | 4,597 | 4,653 |
Other non-cash reconciling items, net | (129) | 2,752 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | (30,146) | 15,906 |
Prepaid expenses and other current assets | (47,065) | (3,481) |
Accounts payable and accrued expenses | (23,940) | (32,377) |
Deferred revenue | 10,876 | 10,653 |
Other current liabilities | 3,516 | 6,876 |
Other non-current assets and liabilities | (13,512) | (1,949) |
Net cash provided by operating activities | 142,618 | 191,373 |
Cash flows from investing activities: | ||
Cash paid for acquired businesses, net of cash acquired | (10) | 0 |
Purchases of property and equipment | (45,224) | (41,806) |
Capitalization of internal-use software development costs | (45,957) | (40,534) |
Purchases of short- and long-term marketable securities | (92,306) | (95,843) |
Proceeds from sales of short- and long-term marketable securities | 180,257 | 0 |
Proceeds from maturities of short- and long-term marketable securities | 143,881 | 125,109 |
Other non-current assets and liabilities | (1,230) | (2,354) |
Net cash provided by (used in) investing activities | 139,411 | (55,428) |
Cash flows from financing activities: | ||
Proceeds related to the issuance of common stock under stock plans | 17,530 | 18,350 |
Employee taxes paid related to net share settlement of stock-based awards | (33,921) | (26,496) |
Repurchases of common stock | (72,467) | (108,725) |
Net cash used in financing activities | (88,858) | (116,871) |
Effects of exchange rate changes on cash and cash equivalents | 4,979 | 4,365 |
Net increase in cash and cash equivalents | 198,150 | 23,439 |
Cash and cash equivalents at beginning of period | 324,169 | 289,473 |
Cash and cash equivalents at end of period | 522,319 | 312,912 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes, net of refunds received in the three months ended March 31, 2017 of $0.8 million | 41,133 | 28,010 |
Non-cash investing activities: | ||
Purchases of property and equipment and capitalization of internal-use software development costs included in accounts payable and accrued expenses | 39,200 | 19,518 |
Capitalization of stock-based compensation | $ 6,411 | $ 5,203 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Statement of Cash Flows [Abstract] | |
Income tax refund received | $ 0.8 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | Nature of Business and Basis of Presentation Akamai Technologies, Inc. (the “Company”) provides cloud services for delivering, optimizing and securing content and business applications over the Internet. The Company's globally-distributed platform comprises more than 200,000 servers across 130 countries. The Company was incorporated in Delaware in 1998 and is headquartered in Cambridge, Massachusetts. The Company currently operates in one industry segment: providing cloud services for delivering, optimizing and securing content and business applications over the Internet. The accompanying interim consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. These financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in the accompanying financial statements. Certain information and footnote disclosures normally included in the Company’s annual audited consolidated financial statements and accompanying notes have been condensed in, or omitted from, these interim financial statements. Accordingly, the unaudited consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2016 , filed with the Securities and Exchange Commission (the "Commission") on February 28, 2017. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results of operations that may be expected for any future periods. In the opinion of management, these unaudited consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, that are necessary for a fair statement of the results of all interim periods reported herein. Newly-Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued guidance that is intended to simplify aspects of how share-based payments are accounted for and presented in financial statements. This guidance requires that entities record all tax effects of share-based payments at settlement or expiration through the income statement. The standard also amends how windfall tax benefits are recognized, the minimum statutory tax withholding requirements and how entities elect to recognize share-based payment forfeitures. In addition, this guidance impacts the presentation of cash flows related to excess tax benefits by no longer requiring separate presentation as a financing activity apart from other operating income tax cash flows. This guidance was effective for the Company on January 1, 2017. Upon adoption, the Company began recognizing tax benefits related to stock-based compensation in its provision for income taxes rather than as additional paid-in capital. The Company elected to continue estimating forfeitures in determining the amount of compensation cost. The Company was not required to adjust beginning retained earnings as a result of these two items. In addition, the Company adopted the presentation requirements related to the excess tax benefit in its statements of cash flows on a retrospective basis beginning January 1, 2015. The line items included in both cash flows from operating activities and financing activities labeled excess tax benefits from stock-based compensation, was eliminated. This had the impact of increasing net cash provided by operating activities and net cash used in financing activities. Prior periods have been revised as follows (in thousands): Net Cash Provided by Operating Activities Net Cash Used in Financing Activities As Reported As Adjusted As Reported As Adjusted Year ended December 31, 2015 $ 764,151 $ 793,452 $ (267,728 ) $ (297,029 ) Three months ended March 31, 2016 190,238 191,373 (115,736 ) (116,871 ) Six months ended June 30, 2016 433,110 435,742 (202,393 ) (205,025 ) Nine months ended September 30, 2016 684,510 687,590 (288,008 ) (291,088 ) Year Ended December 31, 2016 866,298 871,812 (354,265 ) (359,779 ) Recent Accounting Pronouncements In May 2014, the FASB issued updated guidance and disclosure requirements for recognizing revenue. The new revenue recognition standard provides a five-step model for recognizing revenue from contracts with customers. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard can be adopted using one of two methods: retrospectively to each prior period presented or a modified retrospective application by recognizing a cumulative-effect adjustment as a component of equity as of the date of adoption. The Company has elected to adopt the standard retrospectively. The updated guidance modifies certain judgments and estimates that the Company currently makes as it relates to recognizing revenue. Upon adoption of the new revenue standard, integration fee revenue that was previously recognized ratably over the estimated life of the customer arrangement will be recognized when integration has been completed, which will have the effect of accelerating revenue from integration fees. In addition, the Company currently establishes a reserve for cash basis customers if collectability is not reasonably assured and recognizes revenue as cash is collected. Upon adoption of the new standard, revenue will be recognized for those customers when collectability becomes probable, rather than when it is reasonably assured. The Company is also assessing the impact of capitalizing costs associated with obtaining customer contracts, specifically commission and incentive payments. Currently, these payments are expensed in the period they are incurred. Under the updated guidance, these payments will be deferred on the Company's consolidated balance sheets and amortized over the expected life of the customer contract. This standard will be effective for the Company on January 1, 2018. The Company continues to evaluate the potential impact of adopting this new accounting guidance on its consolidated financial statements. In February 2016, the FASB issued guidance that requires companies to present assets and liabilities arising from leases with terms greater than 12 months on the consolidated balance sheets. The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize right-of-use assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This will impact all leases, which include leases for real estate and co-location facilities, among other arrangements currently under evaluation. The Company plans to adopt this standard in the first quarter of 2019 and expects to record significant right-of-use assets and lease liabilities on its consolidated balance sheets. In June 2016, the FASB issued guidance that introduces a new methodology for accounting for credit losses on financial instruments, including available-for-sale debt securities. The guidance establishes a new "expected loss model" that requires entities to estimate current expected credit losses on financial instruments by using all practical and relevant information. Any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. This guidance will be effective for the Company on January 1, 2020. The Company is evaluating the potential impact of adopting this new accounting guidance on its consolidated financial statements. In October 2016, the FASB issued guidance that requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This guidance will be effective for the Company on January 1, 2018 and is to be applied on a modified retrospective basis through recognizing a cumulative-effect adjustment as a component of equity as of the date of adoption. The Company is evaluating the potential impact of adopting this new accounting guidance on its consolidated financial statements. In January 2017, the FASB issued guidance that changes the definition of a business to assist entities with evaluating whether transactions should be accounted for as transfers of assets or business combinations. This guidance will be effective for the Company on January 1, 2018 and is to be applied prospectively. The Company is evaluating the potential impact of adopting this new accounting guidance on its consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following is a summary of available-for-sale marketable securities held as of March 31, 2017 and December 31, 2016 (in thousands): Gross Unrealized Classification on Balance Sheet Amortized Cost Gains Losses Aggregate Fair Value Short-Term Marketable Securities Long-Term Marketable Securities As of March 31, 2017 Commercial paper $ 21,624 $ 1 $ (4 ) $ 21,621 $ 21,621 $ — Corporate bonds 818,195 134 (2,717 ) 815,612 299,413 516,199 U.S. government agency obligations 219,772 — (1,066 ) 218,706 1,506 217,200 $ 1,059,591 $ 135 $ (3,787 ) $ 1,055,939 $ 322,540 $ 733,399 As of December 31, 2016 Commercial paper $ 40,965 $ — $ (45 ) $ 40,920 $ 40,920 $ — Corporate bonds 984,650 123 (3,697 ) 981,076 418,495 562,581 U.S. government agency obligations 267,473 35 (1,366 ) 266,142 53,157 212,985 $ 1,293,088 $ 158 $ (5,108 ) $ 1,288,138 $ 512,572 $ 775,566 The Company offers certain eligible employees the ability to participate in a non-qualified deferred compensation plan. The mutual funds held by the Company that are associated with this plan are classified as restricted trading securities. These securities are not included in the available-for-sale securities table above but are included in marketable securities in the consolidated balance sheets. Unrealized gains and unrealized temporary losses on investments classified as available-for-sale are included within accumulated other comprehensive loss in the consolidated balance sheets. Upon realization, those amounts are reclassified from accumulated other comprehensive loss to interest income in the consolidated statements of income. As of March 31, 2017 , the Company held for investment corporate bonds with a fair value of $8.8 million , which are classified as available-for-sale marketable securities and have been in a continuous unrealized loss position for more than 12 months. The unrealized losses are not significant and are attributable to changes in interest rates. The Company does not believe any unrealized losses represent other than temporary impairments based on the evaluation of available evidence. The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets and liabilities as of March 31, 2017 and December 31, 2016 (in thousands): Total Fair Value Fair Value Measurements at Reporting Date Using Level 1 Level 2 Level 3 As of March 31, 2017 Cash Equivalents and Marketable Securities: Money market funds $ 908 $ 908 $ — $ — Commercial paper 21,621 — 21,621 — Corporate bonds 815,612 — 815,612 — U.S. government agency obligations 218,706 — 218,706 — Mutual funds 5,876 5,876 — — $ 1,062,723 $ 6,784 $ 1,055,939 $ — Liabilities: Contingent consideration obligations related to completed acquisitions $ (6,600 ) $ — $ — $ (6,600 ) As of December 31, 2016 Cash Equivalents and Marketable Securities: Money market funds $ 8,726 $ 8,726 $ — $ — Commercial paper 40,920 — 40,920 — Corporate bonds 981,076 — 981,076 — U.S. government agency obligations 266,142 — 266,142 — Mutual funds 4,022 4,022 — — $ 1,300,886 $ 12,748 $ 1,288,138 $ — Liabilities: Contingent consideration obligations related to completed acquisitions $ (7,100 ) $ — $ — $ (7,100 ) As of March 31, 2017 and December 31, 2016 , the Company grouped money market funds and mutual funds using a Level 1 valuation because market prices for such investments are readily available in active markets. As of March 31, 2017 and December 31, 2016 , the Company grouped commercial paper, corporate bonds and U.S. government agency obligations using a Level 2 valuation because quoted prices for identical or similar assets are available in markets that are inactive. The Company did not have any transfers of assets between Level 1, Level 2 or Level 3 of the fair value measurement hierarchy during the three months ended March 31, 2017 . When developing fair value estimates, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. When available, the Company uses quoted market prices to measure fair value. The valuation technique used to measure fair value for the Company's Level 1 and Level 2 assets is a market approach, using prices and other relevant information generated by market transactions involving identical or comparable assets. If market prices are not available, the fair value measurement is based on models that use primarily market-based parameters including yield curves, volatilities, credit ratings and currency rates. In certain cases where market rate assumptions are not available, the Company is required to make judgments about assumptions market participants would use to estimate the fair value of a financial instrument. The valuation technique used to measure fair value of the Company's Level 3 liabilities, which consists of contingent consideration related to the acquisitions of Soha Systems, Inc. ("Soha") and Cyberfend, Inc. ("Cyberfend") in 2016, was primarily an income-based approach. The significant unobservable input used in the fair value measurement of the contingent consideration is the likelihood of achieving development milestones to integrate the acquired technology into the Company's technology as well as achieving certain post-closing financial results. Contractual maturities of the Company’s available-for-sale marketable securities held as of March 31, 2017 and December 31, 2016 were as follows (in thousands): March 31, December 31, Due in 1 year or less $ 322,540 $ 512,572 Due after 1 year through 5 years 733,399 775,566 $ 1,055,939 $ 1,288,138 The following table reflects the activity for the Company’s major classes of liabilities measured at fair value using Level 3 inputs during the three months ended March 31, 2017 (in thousands): Other Liabilities: Balance as of January 1, 2017 $ (7,100 ) Fair value adjustment to contingent consideration included in general and administrative expense 500 Balance as of March 31, 2017 $ (6,600 ) |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Accounts Receivable | Accounts Receivable Net accounts receivable consisted of the following as of March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, Trade accounts receivable $ 278,463 $ 260,976 Unbilled accounts receivable 123,463 113,765 Gross accounts receivable 401,926 374,741 Allowance for doubtful accounts (787 ) (829 ) Reserve for cash-basis customers (347 ) (5,316 ) Total accounts receivable reserves (1,134 ) (6,145 ) Accounts receivable, net $ 400,792 $ 368,596 The decrease to the reserve for cash-basis customers is primarily attributable to two customers who were removed from cash-basis revenue recognition due to strong, consistent history of payment. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets The change in the carrying amount of goodwill for the three months ended March 31, 2017 was as follows (in thousands): Balance as of January 1, 2017 $ 1,228,503 Foreign currency translation 1,091 Measurement period adjustments (90 ) Balance as of March 31, 2017 $ 1,229,504 The Company tests goodwill for impairment at least annually. Through the date the consolidated financial statements were issued, no triggering events had occurred that would indicate a potential impairment exists. Acquired intangible assets that are subject to amortization consisted of the following as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Accumulated Net Completed technology $ 119,091 $ (54,061 ) $ 65,030 $ 119,091 $ (50,823 ) $ 68,268 Customer-related intangible assets 192,810 (117,866 ) 74,944 192,810 (114,209 ) 78,601 Non-compete agreements 4,090 (3,395 ) 695 5,030 (3,775 ) 1,255 Trademarks and trade names 3,700 (2,475 ) 1,225 3,700 (2,361 ) 1,339 Acquired license rights 490 (490 ) — 490 (490 ) — Total $ 320,181 $ (178,287 ) $ 141,894 $ 321,121 $ (171,658 ) $ 149,463 Aggregate expense related to amortization of acquired intangible assets for the three months ended March 31, 2017 and 2016 was $7.6 million and $6.7 million , respectively. Based on the Company’s acquired intangible assets as of March 31, 2017 , aggregate expense related to amortization of acquired intangible assets is expected to be $21.6 million for the remainder of 2017 , and $26.4 million , $25.0 million , $21.1 million and $16.6 million for 2018 , 2019 , 2020 and 2021 , respectively. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Acquisition-related costs during the three months ended March 31, 2017 were $1.2 million and are included in general and administrative expense in the consolidated statements of income. SOASTA In April 2017, the Company acquired SOASTA, Inc. ("SOASTA"), a leader in digital performance management, for $199.0 million in cash. The allocation of the purchase price has not been finalized as of the date of the filing of these financial statements. The acquisition is expected to give the Company's customers greater visibility into the business impact of their websites and application optimization strategies. The Company plans to add several new capabilities to its Web Performance solutions portfolio including a comprehensive set of cloud-based performance and business optimization solutions. |
Convertible Senior Notes
Convertible Senior Notes | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes In February 2014, the Company issued $690.0 million in par value of convertible senior notes due 2019 (the "Notes"). The Notes are senior unsecured obligations of the Company, do not bear regular interest and mature on February 15, 2019 , unless repurchased or converted prior to maturity. At their option, holders may convert their Notes prior to the close of business on the business day immediately preceding August 15, 2018 , only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ended June 30, 2014 (and only during such calendar quarter), if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; or • during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the conversion rate on each such trading day; or upon the occurrence of specified corporate events. On or after August 15, 2018 , holders may convert all or any portion of their Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, regardless of the foregoing circumstances. Upon conversion, the Company, at its election, may pay or deliver to holders cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock. The initial conversion rate is 11.1651 shares of the Company's common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $89.56 per share, subject to adjustments in certain events, and represents a potential conversion into 7.7 million shares. In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying cost of the liability component was calculated by measuring the fair value of a similar debt obligation that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the Notes. The difference between the principal amount of the Notes and the proceeds allocated to the liability component (“debt discount”) is amortized to interest expense using the effective interest method over the term of the Notes. The equity component is recorded in additional paid-in capital in the consolidated balance sheet and will not be remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the issuance of the Notes, the Company allocated the total transaction costs incurred to the liability and equity components based on their relative values. Transaction costs attributable to the liability component are being amortized to interest expense over the term of the Notes, and transaction costs attributable to the equity component are netted against the equity component of the Notes in stockholders’ equity. The Notes consist of the following components as of March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, 2016 Liability component: Principal $ 690,000 $ 690,000 Less: debt discount and issuance costs, net of amortization (44,281 ) (49,913 ) Net carrying amount $ 645,719 $ 640,087 Equity component: $ 101,276 $ 101,276 The estimated fair value of the Notes at March 31, 2017 was $684.3 million . The fair value was determined based on the quoted price of the Notes in an inactive market on the last trading day of the reporting period and has been classified as Level 2 within the fair value hierarchy. Based on the closing price of the Company's common stock of $59.70 on March 31, 2017 , the value of the Notes if converted to common stock was less than the principal amount of $690.0 million . The Company used $62.0 million of the proceeds from the offering to repurchase shares of its common stock, concurrent with the issuance of the Notes. The repurchase was made in accordance with the share repurchase program previously approved by the Board of Directors (Note 8). Additionally, $23.3 million of the proceeds was used for the net cost of convertible note hedge and warrant transactions. The remaining net proceeds are for working capital, share repurchases and other general corporate purposes, as well as for potential acquisitions and strategic transactions. Note Hedge To minimize the impact of potential dilution upon conversion of the Notes, the Company entered into convertible note hedge transactions with respect to its common stock in February 2014. The Company paid $101.3 million for the note hedge transactions. The note hedge transactions cover approximately 7.7 million shares of the Company’s common stock at a strike price that corresponds to the initial conversion price of the Notes, also subject to adjustment, and are exercisable upon conversion of the Notes. The note hedge transactions are intended to reduce dilution in the event of conversion of the Notes. Warrants Separately, in February 2014, the Company entered into warrant transactions, whereby the Company sold warrants to acquire, subject to anti-dilution adjustments, up to 7.7 million shares of the Company’s common stock at a strike price of approximately $104.49 per share. The Company received aggregate proceeds of $78.0 million from the sale of the warrants. The convertible note hedge and warrant transactions will generally have the effect of increasing the conversion price of the Notes to approximately $104.49 per share. Interest Expense The Notes do not bear regular interest, but have an effective interest rate of 3.2% attributable to the conversion feature. The following table sets forth total interest expense included in the consolidated statements of income related to the Notes for the three months ended March 31, 2017 and 2016 , in thousands. For the Three Months 2017 2016 Amortization of debt discount and issuance costs $ 5,632 $ 5,438 Capitalization of interest expense (1,035 ) (785 ) Total interest expense $ 4,597 $ 4,653 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters In July 2016, as part of the resolution of a patent infringement lawsuit filed by the Company against Limelight Networks, Inc. (“Limelight”) in 2006, the Company agreed to license to Limelight technology covered by certain of the Company’s patents. The terms of the agreement require Limelight to pay the Company $54.0 million in 12 equal installments over three years , beginning in August 2016. During the three months ended March 31, 2017 , the Company received $4.5 million under this agreement, of which $4.0 million was recorded as a reduction to general and administrative expenses in the consolidated statement of income and $0.5 million recorded as interest income. In November 2015, Limelight filed a complaint in the U.S. District Court for the Eastern District of Virginia against the Company and XO Communications LLC (“XO”), alleging patent infringement by the two companies. The complaint alleges that the Company and XO infringed six of Limelight’s content delivery patents. The complaint seeks to recover from the Company and XO monetary damages based upon lost revenue due to infringing technology used by the companies. The Company has agreed to indemnify XO for damages it incurs in this matter. The Company has made counterclaims in the action against Limelight alleging that Limelight has infringed five of the Company’s content delivery patents, and the Company is seeking monetary damages based upon lost revenue due to the infringing technology used by Limelight. No provision with respect to this matter has been made in the Company’s consolidated financial statements. An estimate of the possible loss or range of loss cannot be made. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Share Repurchase Program In February 2016, the Board of Directors authorized a $1.0 billion repurchase program effective from February 2016 through December 2018. The Company's goal for the share repurchase program is to offset the dilution created by its employee equity compensation programs and provide the flexibility to return capital to shareholders as business and market conditions warrant. During the three months ended March 31, 2017 , the Company repurchased 1.1 million shares of its common stock for $72.5 million . Stock-Based Compensation The following table summarizes stock-based compensation included in the Company’s consolidated statements of income for the three months ended March 31, 2017 and 2016 (in thousands): For the Three Months 2017 2016 Cost of revenue $ 4,685 $ 3,970 Research and development 9,029 6,438 Sales and marketing 15,157 12,352 General and administrative 10,115 8,981 Total stock-based compensation 38,986 31,741 Provision for income taxes (17,985 ) (12,133 ) Total stock-based compensation, net of income taxes $ 21,001 $ 19,608 In addition to the amounts of stock-based compensation reported in the table above, the Company’s consolidated statements of income for the three months ended March 31, 2017 and 2016 include stock-based compensation reflected as a component of amortization of capitalized internal-use software of $3.5 million and $3.3 million , respectively, before taxes. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated other comprehensive loss, which is reported as a component of stockholders' equity, for the three months ended March 31, 2017 (in thousands): Foreign Currency Translation Net Unrealized Gains on Investments Total Balance as of January 1, 2017 $ (59,017 ) $ 2,795 $ (56,222 ) Other comprehensive gain 9,499 810 10,309 Balance as of March 31, 2017 $ (49,518 ) $ 3,605 $ (45,913 ) The tax effect on accumulated unrealized gains on investments was insignificant as of March 31, 2017 and December 31, 2016 . Amounts reclassified from accumulated other comprehensive loss to net income were insignificant for the three months ended March 31, 2017 . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective income tax rate was 29.4% and 33.5% for the three months ended March 31, 2017 and 2016 , respectively. The effective income tax rate is based on estimated income for the year, the estimated composition of the income in different jurisdictions and discrete adjustments, if any, in the applicable quarterly periods, including tax benefits related to stock-based compensation, retroactive changes in tax legislation, settlements of tax audits or assessments, the resolution or identification of tax position uncertainties and acquisitions of other companies. For the three months ended March 31, 2017 and 2016, the effective income tax rate was lower than the federal statutory tax rate due to the composition of income from foreign jurisdictions that is taxed at lower rates compared to the statutory tax rates in the U.S. and the U.S. federal, state and foreign research and development credits, partially offset by the effects of accounting for stock-based compensation in accordance with the authoritative guidance for share-based payments and state income taxes. |
Net Income per Share
Net Income per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share Reconciliation [Abstract] | |
Net Income per Share | Net Income per Share Basic net income per share is computed using the weighted average number of common shares outstanding during the applicable period. Diluted net income per share is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of potential common stock. Potential common stock consists of shares issuable pursuant to stock options, restricted stock units ("RSUs"), deferred stock units ("DSUs"), convertible senior notes and warrants issued by the Company. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method. The following table sets forth the components used in the computation of basic and diluted net income per share for the three months ended March 31, 2017 and 2016 (in thousands, except per share data): For the Three Months 2017 2016 Numerator: Net income $ 80,930 $ 74,858 Denominator: Shares used for basic net income per share 173,158 176,403 Effect of dilutive securities: Stock options 360 403 RSUs and DSUs 1,653 733 Convertible senior notes — — Warrants related to issuance of convertible senior notes — — Shares used for diluted net income per share 175,171 177,539 Basic net income per share $ 0.47 $ 0.42 Diluted net income per share $ 0.46 $ 0.42 For the three months ended March 31, 2017 and 2016 , certain potential outstanding shares from stock options, service-based RSUs, convertible notes and warrants were excluded from the computation of diluted net income per share because the effect of including these items was anti-dilutive. Additionally, certain performance-based RSUs were excluded from the computation of diluted net income per share because the underlying performance conditions for such RSUs had not been met as of these dates. The number of potentially outstanding shares excluded from the computation of diluted net income per share for the three months ended March 31, 2017 and 2016 are as follows (in thousands): For the Three Months 2017 2016 Stock options 3 104 Service-based RSUs 2,681 4,662 Performance-based RSUs 1,253 1,348 Convertible senior notes 7,704 7,704 Warrants related to issuance of convertible senior notes 7,704 7,704 Total shares excluded from computation 19,345 21,522 |
Nature of Business and Basis 20
Nature of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Newly-Adopted and Recent Accounting Pronouncements | Newly-Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued guidance that is intended to simplify aspects of how share-based payments are accounted for and presented in financial statements. This guidance requires that entities record all tax effects of share-based payments at settlement or expiration through the income statement. The standard also amends how windfall tax benefits are recognized, the minimum statutory tax withholding requirements and how entities elect to recognize share-based payment forfeitures. In addition, this guidance impacts the presentation of cash flows related to excess tax benefits by no longer requiring separate presentation as a financing activity apart from other operating income tax cash flows. This guidance was effective for the Company on January 1, 2017. Upon adoption, the Company began recognizing tax benefits related to stock-based compensation in its provision for income taxes rather than as additional paid-in capital. The Company elected to continue estimating forfeitures in determining the amount of compensation cost. The Company was not required to adjust beginning retained earnings as a result of these two items. In addition, the Company adopted the presentation requirements related to the excess tax benefit in its statements of cash flows on a retrospective basis beginning January 1, 2015. The line items included in both cash flows from operating activities and financing activities labeled excess tax benefits from stock-based compensation, was eliminated. This had the impact of increasing net cash provided by operating activities and net cash used in financing activities. Prior periods have been revised as follows (in thousands): Net Cash Provided by Operating Activities Net Cash Used in Financing Activities As Reported As Adjusted As Reported As Adjusted Year ended December 31, 2015 $ 764,151 $ 793,452 $ (267,728 ) $ (297,029 ) Three months ended March 31, 2016 190,238 191,373 (115,736 ) (116,871 ) Six months ended June 30, 2016 433,110 435,742 (202,393 ) (205,025 ) Nine months ended September 30, 2016 684,510 687,590 (288,008 ) (291,088 ) Year Ended December 31, 2016 866,298 871,812 (354,265 ) (359,779 ) Recent Accounting Pronouncements In May 2014, the FASB issued updated guidance and disclosure requirements for recognizing revenue. The new revenue recognition standard provides a five-step model for recognizing revenue from contracts with customers. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard can be adopted using one of two methods: retrospectively to each prior period presented or a modified retrospective application by recognizing a cumulative-effect adjustment as a component of equity as of the date of adoption. The Company has elected to adopt the standard retrospectively. The updated guidance modifies certain judgments and estimates that the Company currently makes as it relates to recognizing revenue. Upon adoption of the new revenue standard, integration fee revenue that was previously recognized ratably over the estimated life of the customer arrangement will be recognized when integration has been completed, which will have the effect of accelerating revenue from integration fees. In addition, the Company currently establishes a reserve for cash basis customers if collectability is not reasonably assured and recognizes revenue as cash is collected. Upon adoption of the new standard, revenue will be recognized for those customers when collectability becomes probable, rather than when it is reasonably assured. The Company is also assessing the impact of capitalizing costs associated with obtaining customer contracts, specifically commission and incentive payments. Currently, these payments are expensed in the period they are incurred. Under the updated guidance, these payments will be deferred on the Company's consolidated balance sheets and amortized over the expected life of the customer contract. This standard will be effective for the Company on January 1, 2018. The Company continues to evaluate the potential impact of adopting this new accounting guidance on its consolidated financial statements. In February 2016, the FASB issued guidance that requires companies to present assets and liabilities arising from leases with terms greater than 12 months on the consolidated balance sheets. The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize right-of-use assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This will impact all leases, which include leases for real estate and co-location facilities, among other arrangements currently under evaluation. The Company plans to adopt this standard in the first quarter of 2019 and expects to record significant right-of-use assets and lease liabilities on its consolidated balance sheets. In June 2016, the FASB issued guidance that introduces a new methodology for accounting for credit losses on financial instruments, including available-for-sale debt securities. The guidance establishes a new "expected loss model" that requires entities to estimate current expected credit losses on financial instruments by using all practical and relevant information. Any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. This guidance will be effective for the Company on January 1, 2020. The Company is evaluating the potential impact of adopting this new accounting guidance on its consolidated financial statements. In October 2016, the FASB issued guidance that requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This guidance will be effective for the Company on January 1, 2018 and is to be applied on a modified retrospective basis through recognizing a cumulative-effect adjustment as a component of equity as of the date of adoption. The Company is evaluating the potential impact of adopting this new accounting guidance on its consolidated financial statements. In January 2017, the FASB issued guidance that changes the definition of a business to assist entities with evaluating whether transactions should be accounted for as transfers of assets or business combinations. This guidance will be effective for the Company on January 1, 2018 and is to be applied prospectively. The Company is evaluating the potential impact of adopting this new accounting guidance on its consolidated financial statements. |
Nature of Business and Basis 21
Nature of Business and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of newly-adopted accounting pronouncements | In addition, the Company adopted the presentation requirements related to the excess tax benefit in its statements of cash flows on a retrospective basis beginning January 1, 2015. The line items included in both cash flows from operating activities and financing activities labeled excess tax benefits from stock-based compensation, was eliminated. This had the impact of increasing net cash provided by operating activities and net cash used in financing activities. Prior periods have been revised as follows (in thousands): Net Cash Provided by Operating Activities Net Cash Used in Financing Activities As Reported As Adjusted As Reported As Adjusted Year ended December 31, 2015 $ 764,151 $ 793,452 $ (267,728 ) $ (297,029 ) Three months ended March 31, 2016 190,238 191,373 (115,736 ) (116,871 ) Six months ended June 30, 2016 433,110 435,742 (202,393 ) (205,025 ) Nine months ended September 30, 2016 684,510 687,590 (288,008 ) (291,088 ) Year Ended December 31, 2016 866,298 871,812 (354,265 ) (359,779 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Marketable Securities | The following is a summary of available-for-sale marketable securities held as of March 31, 2017 and December 31, 2016 (in thousands): Gross Unrealized Classification on Balance Sheet Amortized Cost Gains Losses Aggregate Fair Value Short-Term Marketable Securities Long-Term Marketable Securities As of March 31, 2017 Commercial paper $ 21,624 $ 1 $ (4 ) $ 21,621 $ 21,621 $ — Corporate bonds 818,195 134 (2,717 ) 815,612 299,413 516,199 U.S. government agency obligations 219,772 — (1,066 ) 218,706 1,506 217,200 $ 1,059,591 $ 135 $ (3,787 ) $ 1,055,939 $ 322,540 $ 733,399 As of December 31, 2016 Commercial paper $ 40,965 $ — $ (45 ) $ 40,920 $ 40,920 $ — Corporate bonds 984,650 123 (3,697 ) 981,076 418,495 562,581 U.S. government agency obligations 267,473 35 (1,366 ) 266,142 53,157 212,985 $ 1,293,088 $ 158 $ (5,108 ) $ 1,288,138 $ 512,572 $ 775,566 |
Schedule of Fair Value Measurement | The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets and liabilities as of March 31, 2017 and December 31, 2016 (in thousands): Total Fair Value Fair Value Measurements at Reporting Date Using Level 1 Level 2 Level 3 As of March 31, 2017 Cash Equivalents and Marketable Securities: Money market funds $ 908 $ 908 $ — $ — Commercial paper 21,621 — 21,621 — Corporate bonds 815,612 — 815,612 — U.S. government agency obligations 218,706 — 218,706 — Mutual funds 5,876 5,876 — — $ 1,062,723 $ 6,784 $ 1,055,939 $ — Liabilities: Contingent consideration obligations related to completed acquisitions $ (6,600 ) $ — $ — $ (6,600 ) As of December 31, 2016 Cash Equivalents and Marketable Securities: Money market funds $ 8,726 $ 8,726 $ — $ — Commercial paper 40,920 — 40,920 — Corporate bonds 981,076 — 981,076 — U.S. government agency obligations 266,142 — 266,142 — Mutual funds 4,022 4,022 — — $ 1,300,886 $ 12,748 $ 1,288,138 $ — Liabilities: Contingent consideration obligations related to completed acquisitions $ (7,100 ) $ — $ — $ (7,100 ) |
Schedule of Contractual Maturities of Marketable Securities and Other Investment Related Assets | Contractual maturities of the Company’s available-for-sale marketable securities held as of March 31, 2017 and December 31, 2016 were as follows (in thousands): March 31, December 31, Due in 1 year or less $ 322,540 $ 512,572 Due after 1 year through 5 years 733,399 775,566 $ 1,055,939 $ 1,288,138 |
Schedule of Activity of Major Classes of Assets Measured at Fair Value Using Level 3 Inputs | The following table reflects the activity for the Company’s major classes of liabilities measured at fair value using Level 3 inputs during the three months ended March 31, 2017 (in thousands): Other Liabilities: Balance as of January 1, 2017 $ (7,100 ) Fair value adjustment to contingent consideration included in general and administrative expense 500 Balance as of March 31, 2017 $ (6,600 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of Accounts Receivable | Net accounts receivable consisted of the following as of March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, Trade accounts receivable $ 278,463 $ 260,976 Unbilled accounts receivable 123,463 113,765 Gross accounts receivable 401,926 374,741 Allowance for doubtful accounts (787 ) (829 ) Reserve for cash-basis customers (347 ) (5,316 ) Total accounts receivable reserves (1,134 ) (6,145 ) Accounts receivable, net $ 400,792 $ 368,596 |
Goodwill and Acquired Intangi24
Goodwill and Acquired Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of goodwill for the three months ended March 31, 2017 was as follows (in thousands): Balance as of January 1, 2017 $ 1,228,503 Foreign currency translation 1,091 Measurement period adjustments (90 ) Balance as of March 31, 2017 $ 1,229,504 |
Schedule of Acquired Intangible Assets | Acquired intangible assets that are subject to amortization consisted of the following as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Accumulated Net Completed technology $ 119,091 $ (54,061 ) $ 65,030 $ 119,091 $ (50,823 ) $ 68,268 Customer-related intangible assets 192,810 (117,866 ) 74,944 192,810 (114,209 ) 78,601 Non-compete agreements 4,090 (3,395 ) 695 5,030 (3,775 ) 1,255 Trademarks and trade names 3,700 (2,475 ) 1,225 3,700 (2,361 ) 1,339 Acquired license rights 490 (490 ) — 490 (490 ) — Total $ 320,181 $ (178,287 ) $ 141,894 $ 321,121 $ (171,658 ) $ 149,463 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Senior Notes | The Notes consist of the following components as of March 31, 2017 and December 31, 2016 (in thousands): March 31, December 31, 2016 Liability component: Principal $ 690,000 $ 690,000 Less: debt discount and issuance costs, net of amortization (44,281 ) (49,913 ) Net carrying amount $ 645,719 $ 640,087 Equity component: $ 101,276 $ 101,276 |
Schedule of Interest Expense | The following table sets forth total interest expense included in the consolidated statements of income related to the Notes for the three months ended March 31, 2017 and 2016 , in thousands. For the Three Months 2017 2016 Amortization of debt discount and issuance costs $ 5,632 $ 5,438 Capitalization of interest expense (1,035 ) (785 ) Total interest expense $ 4,597 $ 4,653 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table summarizes stock-based compensation included in the Company’s consolidated statements of income for the three months ended March 31, 2017 and 2016 (in thousands): For the Three Months 2017 2016 Cost of revenue $ 4,685 $ 3,970 Research and development 9,029 6,438 Sales and marketing 15,157 12,352 General and administrative 10,115 8,981 Total stock-based compensation 38,986 31,741 Provision for income taxes (17,985 ) (12,133 ) Total stock-based compensation, net of income taxes $ 21,001 $ 19,608 |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated other comprehensive loss, which is reported as a component of stockholders' equity, for the three months ended March 31, 2017 (in thousands): Foreign Currency Translation Net Unrealized Gains on Investments Total Balance as of January 1, 2017 $ (59,017 ) $ 2,795 $ (56,222 ) Other comprehensive gain 9,499 810 10,309 Balance as of March 31, 2017 $ (49,518 ) $ 3,605 $ (45,913 ) |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share Reconciliation [Abstract] | |
Schedule of Components Used in Diluted and Basic Income Per Common Share | The following table sets forth the components used in the computation of basic and diluted net income per share for the three months ended March 31, 2017 and 2016 (in thousands, except per share data): For the Three Months 2017 2016 Numerator: Net income $ 80,930 $ 74,858 Denominator: Shares used for basic net income per share 173,158 176,403 Effect of dilutive securities: Stock options 360 403 RSUs and DSUs 1,653 733 Convertible senior notes — — Warrants related to issuance of convertible senior notes — — Shares used for diluted net income per share 175,171 177,539 Basic net income per share $ 0.47 $ 0.42 Diluted net income per share $ 0.46 $ 0.42 |
Schedule of Shares Excluded from Computation of Diluted Earnings Per Share | The number of potentially outstanding shares excluded from the computation of diluted net income per share for the three months ended March 31, 2017 and 2016 are as follows (in thousands): For the Three Months 2017 2016 Stock options 3 104 Service-based RSUs 2,681 4,662 Performance-based RSUs 1,253 1,348 Convertible senior notes 7,704 7,704 Warrants related to issuance of convertible senior notes 7,704 7,704 Total shares excluded from computation 19,345 21,522 |
Nature of Business and Basis 29
Nature of Business and Basis of Presentation (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2017USD ($)segmentcountryserver | Mar. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Number of servers (more than 200,000) | server | 200,000 | |||||
Number of countries in which servers are located | country | 130 | |||||
Number of industry segments | segment | 1 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net Cash Provided by Operating Activities | $ 142,618 | $ 191,373 | $ 435,742 | $ 687,590 | $ 871,812 | $ 793,452 |
Net Cash Used in Financing Activities | $ (88,858) | (116,871) | (205,025) | (291,088) | (359,779) | (297,029) |
As Reported [Member] | Accounting Standards Update 2016-09 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net Cash Provided by Operating Activities | 190,238 | 433,110 | 684,510 | 866,298 | 764,151 | |
Net Cash Used in Financing Activities | $ (115,736) | $ (202,393) | $ (288,008) | $ (354,265) | $ (267,728) |
Fair Value Measurements - Marke
Fair Value Measurements - Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 1,059,591 | $ 1,293,088 |
Gross Unrealized Gains | 135 | 158 |
Gross Unrealized Losses | (3,787) | (5,108) |
Aggregate Fair Value | 1,055,939 | 1,288,138 |
Short-Term Marketable Securities | 322,540 | 512,572 |
Long-Term Marketable Securities | 733,399 | 775,566 |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 21,624 | 40,965 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | (4) | (45) |
Aggregate Fair Value | 21,621 | 40,920 |
Short-Term Marketable Securities | 21,621 | 40,920 |
Long-Term Marketable Securities | 0 | 0 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 818,195 | 984,650 |
Gross Unrealized Gains | 134 | 123 |
Gross Unrealized Losses | (2,717) | (3,697) |
Aggregate Fair Value | 815,612 | 981,076 |
Short-Term Marketable Securities | 299,413 | 418,495 |
Long-Term Marketable Securities | 516,199 | 562,581 |
Available-for-sale marketable securities, continuous unrealized loss position for more than 12 months | 8,800 | |
U.S. government agency obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 219,772 | 267,473 |
Gross Unrealized Gains | 0 | 35 |
Gross Unrealized Losses | (1,066) | (1,366) |
Aggregate Fair Value | 218,706 | 266,142 |
Short-Term Marketable Securities | 1,506 | 53,157 |
Long-Term Marketable Securities | $ 217,200 | $ 212,985 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurement (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | $ 1,055,939 | $ 1,288,138 |
Commercial paper | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 21,621 | 40,920 |
Corporate bonds | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 815,612 | 981,076 |
U.S. government agency obligations | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 218,706 | 266,142 |
Level 1 | ||
Cash Equivalents and Marketable Securities: | ||
Cash equivalents and marketable securities | 6,784 | 12,748 |
Contingent consideration obligations related to completed acquisitions | 0 | 0 |
Level 1 | Money market funds | ||
Cash Equivalents and Marketable Securities: | ||
Money market funds | 908 | 8,726 |
Level 1 | Commercial paper | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 0 | 0 |
Level 1 | Corporate bonds | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 0 | 0 |
Level 1 | U.S. government agency obligations | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 0 | 0 |
Level 1 | Mutual funds | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 5,876 | 4,022 |
Level 2 | ||
Cash Equivalents and Marketable Securities: | ||
Cash equivalents and marketable securities | 1,055,939 | 1,288,138 |
Contingent consideration obligations related to completed acquisitions | 0 | 0 |
Level 2 | Money market funds | ||
Cash Equivalents and Marketable Securities: | ||
Money market funds | 0 | 0 |
Level 2 | Commercial paper | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 21,621 | 40,920 |
Level 2 | Corporate bonds | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 815,612 | 981,076 |
Level 2 | U.S. government agency obligations | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 218,706 | 266,142 |
Level 2 | Mutual funds | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 0 | 0 |
Level 3 | ||
Cash Equivalents and Marketable Securities: | ||
Cash equivalents and marketable securities | 0 | 0 |
Contingent consideration obligations related to completed acquisitions | (6,600) | (7,100) |
Level 3 | Money market funds | ||
Cash Equivalents and Marketable Securities: | ||
Money market funds | 0 | 0 |
Level 3 | Commercial paper | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 0 | 0 |
Level 3 | Corporate bonds | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 0 | 0 |
Level 3 | U.S. government agency obligations | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 0 | 0 |
Level 3 | Mutual funds | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 0 | 0 |
Total Fair Value | ||
Cash Equivalents and Marketable Securities: | ||
Cash equivalents and marketable securities | 1,062,723 | 1,300,886 |
Contingent consideration obligations related to completed acquisitions | (6,600) | (7,100) |
Total Fair Value | Money market funds | ||
Cash Equivalents and Marketable Securities: | ||
Money market funds | 908 | 8,726 |
Total Fair Value | Commercial paper | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 21,621 | 40,920 |
Total Fair Value | Corporate bonds | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 815,612 | 981,076 |
Total Fair Value | U.S. government agency obligations | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | 218,706 | 266,142 |
Total Fair Value | Mutual funds | ||
Cash Equivalents and Marketable Securities: | ||
Aggregate Fair Value | $ 5,876 | $ 4,022 |
Fair Value Measurements - Sch32
Fair Value Measurements - Schedule of Liability Measured at Fair Value using Level 3 Inputs (Details) - Level 3 $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance, December 31, 2016 | $ (7,100) |
Fair value adjustment to contingent consideration included in general and administrative expense | 500 |
Balance, March 31, 2017 | $ (6,600) |
Fair Value Measurements - Contr
Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Due in 1 year or less | $ 322,540 | $ 512,572 |
Due after 1 year through 5 years | 733,399 | 775,566 |
Aggregate Fair Value | $ 1,055,939 | $ 1,288,138 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | $ 401,926 | $ 374,741 |
Allowance for doubtful accounts | (787) | (829) |
Reserve for cash-basis customers | (347) | (5,316) |
Total accounts receivable reserves | (1,134) | (6,145) |
Accounts receivable, net | 400,792 | 368,596 |
Unbilled accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | 123,463 | 113,765 |
Trade accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | $ 278,463 | $ 260,976 |
Goodwill and Acquired Intangi35
Goodwill and Acquired Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Schedule of Goodwill [Roll Forward] | |
Balance as of January 1, 2017 | $ 1,228,503 |
Foreign currency translation | 1,091 |
Measurement period adjustments | (90) |
Balance as of March 31, 2017 | $ 1,229,504 |
Goodwill and Acquired Intangi36
Goodwill and Acquired Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 320,181 | $ 321,121 |
Accumulated Amortization | (178,287) | (171,658) |
Net Carrying Amount | 141,894 | 149,463 |
Completed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 119,091 | 119,091 |
Accumulated Amortization | (54,061) | (50,823) |
Net Carrying Amount | 65,030 | 68,268 |
Customer-related intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 192,810 | 192,810 |
Accumulated Amortization | (117,866) | (114,209) |
Net Carrying Amount | 74,944 | 78,601 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,090 | 5,030 |
Accumulated Amortization | (3,395) | (3,775) |
Net Carrying Amount | 695 | 1,255 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,700 | 3,700 |
Accumulated Amortization | (2,475) | (2,361) |
Net Carrying Amount | 1,225 | 1,339 |
Acquired license rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 490 | 490 |
Accumulated Amortization | (490) | (490) |
Net Carrying Amount | $ 0 | $ 0 |
Goodwill and Acquired Intangi37
Goodwill and Acquired Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of acquired intangible assets | $ 7,569 | $ 6,716 |
Future amortization expense to be recognized in remainder of 2017 | 21,600 | |
Future amortization expense 2018 | 26,400 | |
Future amortization expense 2019 | 25,000 | |
Future amortization expense 2020 | 21,100 | |
Future amortization expense 2021 | $ 16,600 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Apr. 30, 2017 | Mar. 31, 2017 | |
SOASTA, Inc. [Member] | Subsequent Event [Member] | ||
Business Acquisition [Line Items] | ||
Cash consideration | $ 199 | |
General and Administrative Expense [Member] | ||
Business Acquisition [Line Items] | ||
Acquisition-related costs | $ 1.2 |
Convertible Senior Notes - Narr
Convertible Senior Notes - Narrative (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2014USD ($)d$ / sharesshares | Mar. 31, 2017USD ($)$ / shares | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Debt issued | $ 690,000,000 | $ 690,000,000 | $ 690,000,000 | |
Conversion rate | 0.0111651 | |||
Principal amount per conversion | $ 1,000 | |||
Conversion price (in dollars per share) | $ / shares | $ 89.56 | |||
Threshold trading days exceeding price | d | 20 | |||
Threshold consecutive trading days exceeding price | 30 days | |||
Threshold greater than percentage of stock price trigger | 130.00% | |||
Threshold trading days not exceeding price | 5 days | |||
Threshold consecutive trading days not exceeding price | 5 days | |||
Threshold less than percentage of stock price trigger | 98.00% | |||
Potential conversion shares of convertible debt (in shares) | shares | 7.7 | |||
Fair value of convertible senior notes | $ 684,300,000 | |||
Closing price of common stock (in dollars per share) | $ / shares | $ 59.7 | |||
Repurchases of common stock | $ 62,000,000 | $ 72,467,000 | $ 108,725,000 | |
Payments for purchase of convertible note hedge and warrant transactions | 23,300,000 | |||
Payments for note hedge transactions | $ 101,300,000 | |||
Note hedge shares outstanding (in shares) | shares | 7.7 | |||
Warrants outstanding (in shares) | shares | 7.7 | |||
Warrant strike price (in dollars per share) | $ / shares | $ 104.49 | |||
Proceeds from sale of warrants | $ 78,000,000 | |||
Effective interest rate | 3.20% |
Convertible Senior Notes - Sche
Convertible Senior Notes - Schedule of Convertible Senior Notes (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Feb. 28, 2014 |
Liability component: | |||
Principal | $ 690,000,000 | $ 690,000,000 | $ 690,000,000 |
Less: debt discount and issuance costs, net of amortization | (44,281,000) | (49,913,000) | |
Net carrying amount | 645,719,000 | 640,087,000 | |
Convertible senior notes | |||
Liability component: | |||
Equity component: | $ 101,276,000 | $ 101,276,000 |
Convertible Senior Notes - Sc41
Convertible Senior Notes - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Debt Disclosure [Abstract] | ||
Amortization of debt discount and issuance costs | $ 5,632 | $ 5,438 |
Capitalization of interest expense | (1,035) | (785) |
Total interest expense | $ 4,597 | $ 4,653 |
Commitments and Contingencies -
Commitments and Contingencies - Legal Matters (Details) | 1 Months Ended | 3 Months Ended | |
Jul. 31, 2016USD ($)installment | Nov. 30, 2015patentcompany | Mar. 31, 2017USD ($) | |
Patent Infringement Case Against Limelight [Member] | |||
Loss Contingencies [Line Items] | |||
License agreement payment | $ 54,000,000 | ||
License agreement, number of installments | installment | 12 | ||
License agreement term | 3 years | ||
Proceeds from legal settlements | $ 4,500,000 | ||
Litigation settlement income | 4,000,000 | ||
Litigation settlement interest | 500,000 | ||
Patent Infringement Case Against Limelight [Member] | Pending Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
Patents allegedly infringed | patent | 5 | ||
Patent Infringement Case Against Company and XO [Member] | Pending Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
Number of companies in case | company | 2 | ||
Provision for contingency | $ 0 | ||
Patents allegedly infringed | patent | 6 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) shares in Millions | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2014 | Mar. 31, 2017 | Mar. 31, 2016 | Feb. 29, 2016 | |
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 1,000,000,000 | |||
Repurchases of common stock | $ (62,000,000) | $ (72,467,000) | $ (108,725,000) | |
Amortization expense from capitalized stock-based compensation | $ 3,500,000 | $ 3,300,000 | ||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Shares repurchased during period (in shares) | 1.1 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | $ 38,986 | $ 31,741 |
Provision for income taxes | (17,985) | (12,133) |
Total stock-based compensation, net of income taxes | 21,001 | 19,608 |
Cost of revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | 4,685 | 3,970 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | 9,029 | 6,438 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | 15,157 | 12,352 |
General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | $ 10,115 | $ 8,981 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance as of January 1, 2017 | $ 3,224,370 | |
Other comprehensive gain | 10,309 | $ 12,661 |
Balance as of March 31, 2017 | 3,258,546 | |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance as of January 1, 2017 | (59,017) | |
Other comprehensive gain | 9,499 | |
Balance as of March 31, 2017 | (49,518) | |
Net Unrealized Gains on Investments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance as of January 1, 2017 | 2,795 | |
Other comprehensive gain | 810 | |
Balance as of March 31, 2017 | 3,605 | |
Total | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance as of January 1, 2017 | (56,222) | |
Other comprehensive gain | 10,309 | |
Balance as of March 31, 2017 | $ (45,913) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 29.40% | 33.50% |
Net Income per Share - Schedule
Net Income per Share - Schedule of Components Used in Diluted and Basic Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator [Abstract] | ||
Net income (in dollars) | $ 80,930 | $ 74,858 |
Denominator [Abstract] | ||
Shares used for basic net income per share | 173,158 | 176,403 |
Effect of dilutive securities: | ||
Convertible senior notes (in shares) | 0 | 0 |
Warrants related to issuance of convertible senior notes (in shares) | 0 | 0 |
Shares used for diluted net income per share | 175,171 | 177,539 |
Basic net income per share (in dollars per share) | $ 0.47 | $ 0.42 |
Diluted net income per share (in dollars per share) | $ 0.46 | $ 0.42 |
Stock options | ||
Effect of dilutive securities: | ||
Dilutive securities (in shares) | 360 | 403 |
RSUs and deferred stock units | ||
Effect of dilutive securities: | ||
Dilutive securities (in shares) | 1,653 | 733 |
Net Income per Share - Schedu48
Net Income per Share - Schedule of Shares Excluded from Computation of Diluted EPS (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 19,345 | 21,522 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 3 | 104 |
Service-based RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 2,681 | 4,662 |
Performance-based RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 1,253 | 1,348 |
Convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 7,704 | 7,704 |
Warrants related to issuance of convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 7,704 | 7,704 |