Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 06, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 0-27275 | |
Entity Registrant Name | Akamai Technologies, Inc | |
Entity Central Index Key | 0001086222 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3432319 | |
Entity Address, Address Line One | 150 Broadway | |
Entity Address, City or Town | Cambridge | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02142 | |
City Area Code | 617 | |
Local Phone Number | 444-3000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock - par value $0.01 per share | |
Trading Symbol | AKAM | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 164,982,488 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 515,896 | $ 1,036,455 |
Marketable securities | 526,596 | 855,650 |
Accounts receivable, net of reserves of $1,612 and $1,534 at June 30, 2019, and December 31, 2018, respectively | 523,382 | 479,889 |
Prepaid expenses and other current assets | 178,920 | 163,360 |
Total current assets | 1,744,794 | 2,535,354 |
Marketable securities | 287,046 | 209,066 |
Property and equipment, net | 1,019,407 | 910,618 |
Operating lease right-of-use assets | 359,128 | |
Acquired intangible assets, net | 176,031 | 168,348 |
Goodwill | 1,586,642 | 1,487,404 |
Deferred income tax assets | 19,677 | 34,913 |
Other assets | 150,511 | 116,067 |
Total assets | 5,343,236 | 5,461,770 |
Current liabilities: | ||
Accounts payable | 126,539 | 99,089 |
Accrued expenses | 250,015 | 328,304 |
Deferred revenue | 110,750 | 69,083 |
Convertible senior notes | 0 | 686,552 |
Operating lease liabilities | 96,160 | |
Other current liabilities | 7,350 | 27,681 |
Total current liabilities | 590,814 | 1,210,709 |
Deferred revenue | 5,204 | 4,557 |
Deferred income tax liabilities | 25,099 | 19,624 |
Convertible senior notes | 893,191 | 874,080 |
Operating lease liabilities | 299,062 | |
Other liabilities | 135,102 | 160,940 |
Total liabilities | 1,948,472 | 2,269,910 |
Commitments and contingencies (Note 8) | ||
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; 164,906,403 shares issued and 163,359,091 shares outstanding at June 30, 2019, and 162,904,550 shares issued and outstanding at December 31, 2018 | 1,649 | 1,629 |
Additional paid-in capital | 3,760,840 | 3,670,033 |
Accumulated other comprehensive loss | (42,484) | (48,912) |
Treasury stock, at cost, 1,547,312 shares at June 30, 2019, and no shares at December 31, 2018 | (116,247) | 0 |
Accumulated deficit | (208,994) | (430,890) |
Total stockholders’ equity | 3,394,764 | 3,191,860 |
Total liabilities and stockholders’ equity | $ 5,343,236 | $ 5,461,770 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable reserve | $ 1,612 | $ 1,534 |
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 | 164,906,403 | 162,904,550 |
Common stock, shares outstanding | 163,359,091 | 162,904,550 |
Treasury stock, shares | 1,547,312 | 0 |
Consolidated Statements of Inco
Consolidated Statements of 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 | |
Income Statement [Abstract] | ||||
Revenue | $ 705,074 | $ 662,759 | $ 1,411,582 | $ 1,331,483 |
Costs and operating expenses: | ||||
Cost of revenue (exclusive of amortization of acquired intangible assets shown below) | 242,193 | 235,487 | 482,936 | 470,312 |
Research and development | 61,439 | 59,709 | 127,580 | 124,774 |
Sales and marketing | 135,106 | 131,680 | 261,382 | 254,233 |
General and administrative | 120,116 | 170,206 | 242,951 | 324,591 |
Amortization of acquired intangible assets | 9,648 | 8,294 | 19,247 | 16,725 |
Restructuring charges | 790 | 266 | 7,179 | 15,174 |
Total costs and operating expenses | 569,292 | 605,642 | 1,141,275 | 1,205,809 |
Income from operations | 135,782 | 57,117 | 270,307 | 125,674 |
Interest income | 6,410 | 6,409 | 15,045 | 10,374 |
Interest expense | (8,446) | (9,204) | (20,562) | (14,054) |
Other expense, net | (578) | (2,769) | (67) | (2,748) |
Income before provision for income taxes | 133,168 | 51,553 | 264,723 | 119,246 |
Provision for income taxes | 19,253 | 8,492 | 43,678 | 22,471 |
Net income | $ 113,915 | $ 43,061 | $ 221,045 | $ 96,775 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.70 | $ 0.25 | $ 1.35 | $ 0.57 |
Diluted (in dollars per share) | $ 0.69 | $ 0.25 | $ 1.34 | $ 0.56 |
Shares used in per share calculations: | ||||
Basic (in shares) | 163,407 | 170,250 | 163,322 | 170,183 |
Diluted (in shares) | 165,019 | 172,307 | 164,903 | 172,156 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 113,915 | $ 43,061 | $ 221,045 | $ 96,775 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 2,849 | (24,558) | 3,351 | (18,275) |
Change in unrealized gain (loss) on investments, net of income tax (provision) benefit of $(547), $(299), $(1,101) and $572 for the three and six months ended June 30, 2019 and 2018, respectively | 1,646 | 921 | 3,077 | (1,765) |
Other comprehensive income (loss) | 4,495 | (23,637) | 6,428 | (20,040) |
Comprehensive income | $ 118,410 | $ 19,424 | $ 227,473 | $ 76,735 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Income tax on unrealized gain (loss) on investments | $ (547) | $ (299) | $ (1,101) | $ 572 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 221,045 | $ 96,775 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 214,270 | 210,393 |
Stock-based compensation | 93,447 | 92,183 |
Provision (benefit) for deferred income taxes | 24,608 | (12,116) |
Amortization of debt discount and issuance costs | 19,628 | 13,759 |
Restructuring-related software charges | 0 | 2,818 |
Other non-cash reconciling items, net | 1,180 | 8,015 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | (38,127) | (16,889) |
Prepaid expenses and other current assets | (23,287) | 8,578 |
Accounts payable and accrued expenses | (52,789) | (27,091) |
Deferred revenue | 27,973 | 29,552 |
Other current liabilities | (18,739) | 5,655 |
Other non-current assets and liabilities | 9,570 | 59 |
Net cash provided by operating activities | 478,779 | 411,691 |
Cash flows from investing activities: | ||
Cash paid for acquired businesses, net of cash acquired | (121,409) | (79) |
Cash paid for equity method investment | (36,008) | 0 |
Purchases of property and equipment | (158,158) | (98,300) |
Capitalization of internal-use software development costs | (117,620) | (103,409) |
Purchases of short- and long-term marketable securities | (391,758) | (467,886) |
Proceeds from sales of short- and long-term marketable securities | 268 | 16,196 |
Proceeds from maturities of short- and long-term marketable securities | 649,262 | 124,370 |
Other non-current assets and liabilities | 2,237 | (479) |
Net cash used in investing activities | (173,186) | (529,587) |
Cash flows from financing activities: | ||
Proceeds from the issuance of convertible senior notes | 0 | 1,132,622 |
Proceeds from the issuance of warrants | 0 | 119,945 |
Purchase of note hedge related to convertible senior notes | 0 | (261,740) |
Repayment of convertible senior notes | (690,000) | 0 |
Proceeds related to the issuance of common stock under stock plans | 28,772 | 34,103 |
Employee taxes paid related to net share settlement of stock-based awards | (49,956) | (41,308) |
Repurchases of common stock | (116,247) | (185,512) |
Other non-current assets and liabilities | (1,558) | (4,844) |
Net cash (used in) provided by financing activities | (828,989) | 793,266 |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | 2,678 | (11,460) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (520,718) | 663,910 |
Cash, cash equivalents and restricted cash at beginning of period | 1,036,987 | 314,429 |
Cash, cash equivalents and restricted cash at end of period | 516,269 | 978,339 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes, net of refunds received of $2,216 and $8,656 for the six months ended June 30, 2019 and 2018, respectively | 54,271 | 28,088 |
Cash paid for operating lease liabilities | 69,317 | |
Non-cash activities: | ||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 63,709 | |
Purchases of property and equipment and capitalization of internal-use software development costs included in accounts payable and accrued expenses | 71,066 | 34,016 |
Capitalization of stock-based compensation | $ 18,760 | $ 16,891 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Cash paid for operating lease liabilities | $ 69,317 | |
Income tax refund received | 2,216 | $ 8,656 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | 515,896 | 977,488 |
Restricted cash | 373 | 851 |
Cash, cash equivalents and restricted cash | 516,269 | $ 978,339 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 63,709 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2017 | 169,893,324 | |||||
Beginning Balance at Dec. 31, 2017 | $ 3,362,469 | $ 1,699 | $ 4,073,362 | $ 0 | $ (21,930) | $ (690,662) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative-effect adjustment to accumulated deficit related to adoption of new accounting pronouncement | (38,601) | (38,601) | ||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes (in shares) | 1,327,017 | |||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes | (38,514) | $ 14 | (38,528) | |||
Issuance of common stock under employee stock purchase plan (in shares) | 543,520 | |||||
Issuance of common stock under employee stock purchase plan | 25,768 | $ 5 | 25,763 | |||
Stock-based compensation | 108,893 | 108,893 | ||||
Equity component of convertible senior notes, net of issuance costs of $1,649 | 275,836 | 275,836 | ||||
Issuance costs for convertible senior notes | 1,649 | |||||
Issuance of warrants related to convertible senior notes | 119,945 | 119,945 | ||||
Purchase of note hedge related to convertible senior notes | (261,740) | (261,740) | ||||
Repurchases of common stock (in shares) | (2,452,768) | |||||
Repurchases of common stock | (185,512) | (185,512) | ||||
Net income | 96,775 | 96,775 | ||||
Foreign currency translation adjustments | (18,275) | (18,276) | ||||
Change in unrealized gain (loss) on investments, net of income tax (provision) benefit of $(547), $(299), $(1,101) and $572 for the three and six months ended June 30, 2019 and 2018, respectively | (1,765) | (1,765) | ||||
Ending balance (in shares) at Jun. 30, 2018 | 169,311,093 | |||||
Ending Balance at Jun. 30, 2018 | 3,445,278 | $ 1,718 | 4,303,531 | (185,512) | (41,971) | (632,488) |
Beginning balance (in shares) at Mar. 31, 2018 | 170,548,139 | |||||
Beginning Balance at Mar. 31, 2018 | 3,386,258 | $ 1,708 | 4,098,218 | (19,785) | (18,334) | (675,549) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes (in shares) | 378,583 | |||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes | (10,989) | $ 5 | (10,994) | |||
Issuance of common stock under employee stock purchase plan (in shares) | 543,520 | |||||
Issuance of common stock under employee stock purchase plan | 25,768 | $ 5 | 25,763 | |||
Stock-based compensation | 56,503 | 56,503 | ||||
Equity component of convertible senior notes, net of issuance costs of $1,649 | 275,836 | 275,836 | ||||
Issuance costs for convertible senior notes | 1,649 | |||||
Issuance of warrants related to convertible senior notes | 119,945 | 119,945 | ||||
Purchase of note hedge related to convertible senior notes | (261,740) | (261,740) | ||||
Repurchases of common stock (in shares) | (2,159,149) | |||||
Repurchases of common stock | (165,727) | (165,727) | ||||
Treasury stock retirement | 0 | |||||
Net income | 43,061 | 43,061 | ||||
Foreign currency translation adjustments | (24,558) | (24,558) | ||||
Change in unrealized gain (loss) on investments, net of income tax (provision) benefit of $(547), $(299), $(1,101) and $572 for the three and six months ended June 30, 2019 and 2018, respectively | 921 | 921 | ||||
Ending balance (in shares) at Jun. 30, 2018 | 169,311,093 | |||||
Ending Balance at Jun. 30, 2018 | 3,445,278 | $ 1,718 | 4,303,531 | (185,512) | (41,971) | (632,488) |
Beginning balance (in shares) at Dec. 31, 2018 | 162,904,550 | |||||
Beginning Balance at Dec. 31, 2018 | 3,191,860 | $ 1,629 | 3,670,033 | 0 | (48,912) | (430,890) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative-effect adjustment to accumulated deficit related to adoption of new accounting pronouncement | 851 | 851 | ||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes (in shares) | 1,528,391 | |||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes | (48,911) | $ 15 | (48,926) | |||
Issuance of common stock under employee stock purchase plan (in shares) | 473,462 | |||||
Issuance of common stock under employee stock purchase plan | 27,669 | $ 5 | 27,664 | |||
Stock-based compensation | 112,069 | 112,069 | ||||
Repurchases of common stock (in shares) | (1,547,312) | |||||
Repurchases of common stock | (116,247) | (116,247) | ||||
Net income | 221,045 | 221,045 | ||||
Foreign currency translation adjustments | 3,351 | 3,351 | ||||
Change in unrealized gain (loss) on investments, net of income tax (provision) benefit of $(547), $(299), $(1,101) and $572 for the three and six months ended June 30, 2019 and 2018, respectively | 3,077 | 3,077 | ||||
Ending balance (in shares) at Jun. 30, 2019 | 163,359,091 | |||||
Ending Balance at Jun. 30, 2019 | 3,394,764 | $ 1,649 | 3,760,840 | (116,247) | (42,484) | (208,994) |
Beginning balance (in shares) at Mar. 31, 2019 | 163,503,258 | |||||
Beginning Balance at Mar. 31, 2019 | 3,283,217 | $ 1,640 | 3,686,337 | (34,872) | (46,979) | (322,909) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes (in shares) | 437,733 | |||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes | (11,147) | $ 4 | (11,151) | |||
Issuance of common stock under employee stock purchase plan (in shares) | 473,462 | |||||
Issuance of common stock under employee stock purchase plan | 27,669 | $ 5 | 27,664 | |||
Stock-based compensation | 57,990 | 57,990 | ||||
Repurchases of common stock (in shares) | (1,055,362) | |||||
Repurchases of common stock | (81,375) | (81,375) | ||||
Net income | 113,915 | 113,915 | ||||
Foreign currency translation adjustments | 2,849 | 2,849 | ||||
Change in unrealized gain (loss) on investments, net of income tax (provision) benefit of $(547), $(299), $(1,101) and $572 for the three and six months ended June 30, 2019 and 2018, respectively | 1,646 | 1,646 | ||||
Ending balance (in shares) at Jun. 30, 2019 | 163,359,091 | |||||
Ending Balance at Jun. 30, 2019 | $ 3,394,764 | $ 1,649 | $ 3,760,840 | $ (116,247) | $ (42,484) | $ (208,994) |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
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 solutions for delivering, optimizing and securing content and business applications over the Internet. Its globally-distributed platform comprises more than 200,000 servers across more than 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, 2018 , filed with the Securities and Exchange Commission on February 28, 2019. 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 Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued guidance that requires companies to present assets and liabilities arising from leases on the consolidated balance sheet. The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize right-of-use (“ROU”) assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The Company adopted this standard on January 1, 2019 on a modified retrospective basis by applying the new standard to its lease portfolio as of January 1, 2019, while continuing to apply legacy guidance in the comparative periods. The Company elected to use the package of practical expedients available under the transition provisions of the guidance, which allows companies to not reassess prior conclusions related to contracts containing leases, lease classification and capitalization of initial direct costs. The Company also elected not to apply the hindsight practical expedient related to its lease transactions. Adoption of the standard required the Company to record ROU assets and lease liabilities for its operating leases related to real estate and co-location arrangements. The operating leases resulted in the recognition of ROU assets and lease liabilities of $362.2 million and $394.1 million , respectively, as of January 1, 2019. The adoption of the standard also resulted in elimination of deferred rent liabilities of $31.7 million , as of January 1, 2019, that are now recorded as a reduction of the ROU asset. The standard did not have an impact on the Company’s results of operations or cash flows. Stranded Tax Effects Resulting from U.S. Tax Cuts and Jobs Act In February 2018, the FASB issued guidance that allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act ("TCJA") that was enacted in 2017. This guidance was effective for the Company on January 1, 2019. The adoption of this new accounting guidance resulted in the reclassification of $0.9 million of income tax benefits resulting from the TCJA from accumulated other comprehensive loss to accumulated deficit. The adoption of this new accounting guidance did not have an impact on the Company's results of operations or cash flows. |
Significant Accounting Policies
Significant Accounting Policies Update | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies Update | Significant Accounting Policies Update The Company's significant accounting policies are detailed in Note 2 of its annual report on Form 10-K for the year ended December 31, 2018. However, the following policies have been updated as of January 1, 2019. Property and Equipment Property and equipment are recorded at cost, net of accumulated depreciation and amortization. Property and equipment generally includes purchases of items with a per-unit value greater than $1,000 and a useful life greater than one year . Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the assets. The Company periodically reviews the estimated useful lives of property and equipment. Changes to the estimated useful lives are recorded prospectively from the date of the change. Upon retirement or sale, the cost of the assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in income from operations. The Company has implemented software and hardware initiatives to manage its global network more efficiently and, as a result, the expected average useful life of its network assets, primarily servers, increased from four years to five years , effective January 1, 2019. These changes decreased depreciation expense by $9.2 million and $16.7 million for the three and six months ended June 30, 2019, respectively, and increased net income by $7.6 million and $13.9 million for the three and six months ended June 30, 2019, respectively, or $0.05 and $0.09 per share, for the three and six months ended June 30, 2019, respectively. Operating Leases The Company enters into operating leases for real estate assets related to office space and co-location assets related to space or racks at co-location facilities and related equipment for its servers and other networking equipment. The Company determines if an arrangement contains a lease at the inception of a contract by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset in exchange for consideration and the right to obtain the economic benefits from the use of the identified asset. Upon commencement of a lease, the Company records an ROU asset that represents the Company’s right to use the underlying asset for the lease term and a lease liability that represents an obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Lease payments are discounted at the lease commencement date using the rate implicit in the lease unless that rate is not readily determinable. As most of the Company’s leases do not provide an implicit rate, an incremental borrowing rate has been applied based on the Company's credit-adjusted risk-free rate. The incremental borrowing rate at January 1, 2019 (the date the new lease standard was adopted) was used to calculate the present value of the Company’s lease portfolio as of that date. The Company often enters into contracts that contain both lease and non-lease components. Real estate non-lease components include real estate taxes, insurance, maintenance, parking and other operating costs. Co-location non-lease components include utilities and other operating costs. As of January 1, 2019, the Company includes both lease and non-lease components of fixed costs in its lease arrangements as a single lease component. Variable costs, such as utilities based on actual usage, are not included in the measurement of ROU assets and lease liabilities, but are expensed when the event determining the amount of variable consideration to be paid occurs. The Company’s lease terms often include renewal options and, particularly in the case of co-location arrangements, may include evergreen provisions. The Company’s ROU assets and lease liabilities generally do not include the options to extend, or terminate, unless it is reasonably certain that the Company will exercise these options. The Company has elected to exclude leases for certain networking equipment with terms of 12 months or less from its ROU assets and lease liabilities on its consolidated balance sheet. Lease expense is recognized on a straight-line basis over the lease term. Equity Method Investments The Company accounts for equity investments in which it has significant influence, but not a controlling financial interest, using the equity method of accounting. Under the equity method of accounting, investments are initially recorded at cost, less impairment, and subsequently adjusted to recognize the Company’s share of earnings or losses. In February 2019, the Company and Mitsubishi UFJ Financial Group ("MUFG") announced the establishment of a joint venture, the Global Open Network, Inc. ("GO-NET"), and their plans to offer a new blockchain-based online payment network. The Company's 20% stake in GO-NET is accounted for using the equity method. As of June 30, 2019, the Company's $36.0 million investment is included in other assets on the consolidated balance sheet. Recent Accounting Pronouncements 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 August 2018, the FASB issued guidance which changes the fair value measurement disclosure requirements. This guidance will be effective for the Company on January 1, 2020. The Company is evaluating the impact the update will have on its disclosures. In August 2018, the FASB issued guidance which addresses a customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The guidance aligns the accounting for costs incurred to implement a cloud computing arrangement that is a service arrangement with the guidance for capitalizing costs associated with developing or obtaining internal-use software. 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. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following is a summary of available-for-sale marketable securities held as of June 30, 2019 and December 31, 2018 (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 June 30, 2019 Commercial paper $ 13,558 $ 22 $ — $ 13,580 $ 13,580 $ — Corporate bonds 710,794 915 (691 ) 711,018 442,522 268,496 U.S. government agency obligations 75,257 19 (57 ) 75,219 70,215 5,004 $ 799,609 $ 956 $ (748 ) $ 799,817 $ 526,317 $ 273,500 As of December 31, 2018 Certificates of deposit $ 40,000 $ — $ (7 ) $ 39,993 $ 39,993 $ — Commercial paper 282,996 — (50 ) 282,946 282,946 — Corporate bonds 685,653 1 (4,309 ) 681,345 482,088 199,257 U.S. government agency obligations 50,876 — (404 ) 50,472 50,472 — $ 1,059,525 $ 1 $ (4,770 ) $ 1,054,756 $ 855,499 $ 199,257 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 June 30, 2019 , the Company held for investment corporate and government bonds with a fair value of $293.9 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 of $0.6 million related to these corporate and government bonds are included in accumulated other comprehensive income as of June 30, 2019 . The unrealized losses are attributable to changes in interest rates. Based on the evaluation of available evidence, the Company does not believe any unrealized losses represent other than temporary impairments. The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets and liabilities as of June 30, 2019 and December 31, 2018 (in thousands): Total Fair Value Fair Value Measurements at Reporting Date Using Level 1 Level 2 Level 3 As of June 30, 2019 Cash Equivalents and Marketable Securities: Money market funds $ 2,550 $ 2,550 $ — $ — Commercial paper 13,580 — 13,580 — Corporate bonds 711,018 — 711,018 — U.S. government agency obligations 75,219 — 75,219 — Mutual funds 13,825 13,825 — — $ 816,192 $ 16,375 $ 799,817 $ — As of December 31, 2018 Cash Equivalents and Marketable Securities: Money market funds $ 380,260 $ 380,260 $ — $ — Certificates of deposit 39,993 39,993 — — Commercial paper 282,946 — 282,946 — Corporate bonds 681,345 — 681,345 — U.S. government agency obligations 50,472 — 50,472 — Mutual funds 10,016 10,016 — — $ 1,445,032 $ 430,269 $ 1,014,763 $ — Liabilities: Contingent consideration related to a completed acquisition $ (6,300 ) $ — $ — $ (6,300 ) As of June 30, 2019 and December 31, 2018 , the Company grouped certificates of deposit, 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 June 30, 2019 and December 31, 2018 , 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 six months ended June 30, 2019 . 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 primarily use 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 consist of contingent consideration related to the acquisition of Cyberfend, Inc. in 2016, was primarily an income-based approach. The significant unobservable input used in the fair value measurement of the contingent consideration was the likelihood of achieving certain post-closing financial results. Contractual maturities of the Company’s available-for-sale marketable securities held as of June 30, 2019 and December 31, 2018 were as follows (in thousands): June 30, December 31, Due in 1 year or less $ 526,317 $ 855,499 Due after 1 year through 3 years 273,500 199,257 $ 799,817 $ 1,054,756 The following table reflects the activity for the Company’s major classes of liabilities measured at fair value using Level 3 inputs during the six months ended June 30, 2019 (in thousands): Other Liabilities: Balance as of January 1, 2019 $ (6,300 ) Cash paid upon achievement of milestone 6,300 Balance as of June 30, 2019 $ — |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Accounts Receivable | Accounts Receivable Net accounts receivable consisted of the following as of June 30, 2019 and December 31, 2018 (in thousands): June 30, December 31, Trade accounts receivable $ 378,469 $ 337,445 Unbilled accounts receivable 146,525 143,978 Gross accounts receivable 524,994 481,423 Allowance for doubtful accounts and other reserves (1,612 ) (1,534 ) Accounts receivable, net $ 523,382 $ 479,889 |
Incremental Costs to Obtain a C
Incremental Costs to Obtain a Contract with a Customer | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Incremental Costs to Obtain a Contract with a Customer | Incremental Costs to Obtain a Contract with a Customer The following table summarizes the deferred costs associated with obtaining customer contracts, specifically commission and incentive payments, as of June 30, 2019 and December 31, 2018 (in thousands): June 30, December 31, Deferred costs included in prepaid and other current assets $ 41,180 $ 41,955 Deferred costs included in other assets 21,857 26,338 Total deferred costs $ 63,037 $ 68,293 During the three and six months ended June 30, 2019 , the Company recognized $10.8 million and $21.6 million , respectively, of amortization expense related to deferred commissions. During the three and six months ended June 30, 2018 , the Company recognized $10.8 million and $21.7 million , respectively, of amortization expense related to deferred commissions. Amortization expense related to deferred commissions is primarily included in sales and marketing expense in the consolidated statements of income. The Company sells its solutions through a sales force located both domestically and abroad. Revenue derived from operations outside of the U.S. is determined based on the country in which the sale originated. Other than the U.S., no single country accounted for 10% or more of the Company’s total revenue for any reported period. The following table summarizes revenue by geography included in the Company’s consolidated statements of income for the three and six months ended June 30, 2019 and 2018 (in thousands): For the Three Months For the Six Months 2019 2018 2019 2018 U.S. $ 416,859 $ 413,129 $ 835,059 $ 836,468 International 288,215 249,630 576,523 495,015 Total revenue $ 705,074 $ 662,759 $ 1,411,582 $ 1,331,483 While the Company sells its solutions through a geographically dispersed sales force, it manages its customer relationships in two divisions: the Web Division and the Media and Carrier Division. Customers are assigned to a division for relationship management purposes according to their predominant purchasing activity; however, customers may purchase solutions managed by the other division as well. As of January 1, 2019, the Company reassigned some of its customers from the Media and Carrier Division to the Web Division and revised historical results in order to reflect the most recent categorization and to provide a comparable view for all periods presented. As the purchasing patterns and required account expertise of customers change over time, the Company may reassign a customer's division from one to another. The following table summarizes revenue by division included in the Company’s consolidated statements of income for the three and six months ended June 30, 2019 and 2018 (in thousands): For the Three Months For the Six Months 2019 2018 2019 2018 Web Division $ 380,374 $ 351,871 $ 756,649 $ 705,121 Media and Carrier Division 324,700 310,888 654,933 626,362 Total revenue $ 705,074 $ 662,759 $ 1,411,582 $ 1,331,483 Most content delivery and security services represent obligations that are satisfied over time as the customer simultaneously receives and consumes the services provided by the Company. Accordingly, the majority of the Company's revenue is recognized over time, generally ratably over the term of the arrangement due to consistent monthly traffic commitments that expire each period. A small percentage of the Company's services are satisfied at a point in time, such as one-time professional services contracts, integration services and most license sales where the primary obligation is delivery of the license at the start of the term. In these cases, revenue is recognized at a point in time of delivery or satisfaction of the performance obligation. During the six months ended June 30, 2019 and 2018 , the Company recognized $52.8 million and $56.6 million of revenue that was included in deferred revenue as of December 31, 2018 and 2017 , respectively. As of June 30, 2019 , the aggregate amount of remaining performance obligations from contracts with customers was $2.4 billion . The Company expects to recognize more than 70% of its remaining performance obligations as revenue over the next 12 months, with the remaining recognized thereafter. Remaining performance obligations represent the amount of the transaction price under contracts with customers that are attributable to performance obligations that are unsatisfied or partially satisfied at the reporting date. This consists of future committed revenue for monthly, quarterly or annual periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced in prior periods for which the related performance obligations have not been satisfied. It excludes estimates of variable consideration such as usage-based contracts with no committed contract as well as anticipated renewed contracts. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
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 six months ended June 30, 2019 was as follows (in thousands): Balance as of January 1, 2019 $ 1,487,404 Acquisition of Janrain, Inc. 99,685 Foreign currency translation (447 ) Balance as of June 30, 2019 $ 1,586,642 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 June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Accumulated Net Completed technology $ 154,091 $ (91,103 ) $ 62,988 $ 145,091 $ (81,587 ) $ 63,504 Customer-related intangible assets 263,410 (153,970 ) 109,440 245,710 (144,786 ) 100,924 Non-compete agreements 730 (413 ) 317 700 (306 ) 394 Trademarks and trade names 7,400 (4,114 ) 3,286 7,200 (3,674 ) 3,526 Acquired license rights 490 (490 ) — 490 (490 ) — Total $ 426,121 $ (250,090 ) $ 176,031 $ 399,191 $ (230,843 ) $ 168,348 Aggregate expense related to amortization of acquired intangible assets for the three and six months ended June 30, 2019 was $9.6 million and $19.2 million , respectively. Aggregate expense related to amortization of acquired intangible assets for the three and six months ended June 30, 2018 was $8.3 million and $16.7 million , respectively. Based on the Company’s acquired intangible assets as of June 30, 2019 , aggregate expense related to amortization of acquired intangible assets is expected to be $19.3 million for the remainder of 2019 , and $36.9 million , $32.0 million , $26.2 million and $20.3 million for 2020 , 2021 , 2022 and 2023 , respectively. |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Acquisition-related costs during the six months ended June 30, 2019 were $1.0 million and are included in general and administrative expense in the consolidated statements of income. Pro forma results of operations for the acquisition completed during the six months ended June 30, 2019 have not been presented because the effects of the acquisition were not material to the Company's consolidated financial results. Revenue and earnings of the acquired company since the date of the acquisition that are included in the Company's consolidated statements of income are also not presented separately because they are not material. Janrain In January 2019, the Company acquired Janrain, Inc. ("Janrain"), a provider of customer identity and access management solutions, for $123.6 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 Company plans to incorporate the Janrain technology into Akamai's Intelligent Edge Platform. The following table presents the preliminary allocation of the purchase price for Janrain (in thousands): Total purchase consideration $ 123,632 Allocation of the purchase consideration: Cash $ 2,223 Accounts receivable 7,318 Prepaid expenses and other current assets 838 Identifiable intangible assets 26,930 Goodwill 99,685 Deferred tax assets 5,124 Other assets 87 Total assets acquired 142,205 Accounts payable (1,641 ) Accrued expenses (2,596 ) Deferred revenue (14,336 ) Total liabilities assumed (18,573 ) Net assets acquired $ 123,632 The value of the goodwill can be attributed to a number of business factors, including a trained technical and sales workforce and cost synergies expected to be realized. The total amount of goodwill related to the acquisition of Janrain expected to be deductible for tax purposes is $42.5 million . The following were the identifiable intangible assets acquired and their respective weighted average useful lives (in thousands, except years): Gross Carrying Amount Weighted Average Useful Life (in years) Completed technologies $ 9,000 3.0 Customer-related intangible assets 17,700 6.0 Trademarks 200 0.8 Non-compete agreements 30 1.0 Total $ 26,930 The total weighted average amortization period for the intangible assets acquired from Janrain is 5.0 years . The intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters In April 2018, as part of the resolution of multiple existing lawsuits between Limelight Networks, Inc. ("Limelight") and the Company, including in the U.S. District Court for the Eastern District of Virginia and in the U.S. District Court for the District of Massachusetts, the Company and Limelight entered into an agreement to settle the cases and request that the U.S. Patent Trial and Appeal Board terminate certain proceedings related to patents at issue in the litigation. The Company recorded a $14.9 million charge in the second quarter of 2018, which is included in general and administrative expenses in the consolidated statement of income for the three and six months ended June 30, 2018, related to this settlement. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Convertible Notes – Due 2025 In May 2018 , the Company issued $1,150.0 million in par value of convertible senior notes due 2025 (the "2025 Notes"). The 2025 Notes are senior unsecured obligations of the Company, bear regular interest of 0.125% , payable semi-annually on May 1 and November 1 of each year, and mature on May 1, 2025 , unless repurchased or converted prior to maturity. At their option, holders may convert their 2025 Notes prior to the close of business on the business day immediately preceding January 1, 2025 , only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ended June 30, 2018 (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, and including, 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; • during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of 2025 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 January 1, 2025 , holders may convert all or any portion of their 2025 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 10.5150 shares of the Company's common stock per $ 1,000 principal amount, which is equivalent to an initial conversion price of approximately $95.10 per share, subject to adjustments in certain events, and represents a potential conversion into 12.1 million shares. In accounting for the issuance of the 2025 Notes, the Company separated the 2025 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 2025 Notes. The difference between the principal amount of the 2025 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 2025 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 2025 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 2025 Notes, and transaction costs attributable to the equity component are netted against the equity component of the 2025 Notes in stockholders’ equity. The 2025 Notes consisted of the following components as of June 30, 2019 and December 31, 2018 (in thousands): June 30, December 31, Liability component: Principal $ 1,150,000 $ 1,150,000 Less: debt discount and issuance costs, net of amortization (256,809 ) (275,920 ) Net carrying amount $ 893,191 $ 874,080 Equity component: $ 285,225 $ 285,225 The estimated fair value of the 2025 Notes at June 30, 2019 was $1,234.0 million . The fair value was determined based on the quoted price of the 2025 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 $80.14 on June 28, 2019, the value of the 2025 Notes if converted to common stock was less than the principal amount of $1,150.0 million . The Company used $46.2 million of the proceeds from the offering to repurchase shares of its common stock, concurrent with the issuance of the 2025 Notes. The repurchase was made in accordance with a share repurchase program previously approved by the Board of Directors. Additionally, $141.8 million of the proceeds was used for the net cost of convertible note hedge and warrant transactions. The Company also used a portion of the net proceeds to repay at maturity the $690.0 million in par value of convertible senior notes due 2019. The remaining net proceeds are intended to be used for working capital, share repurchases, potential acquisitions and strategic transactions and other corporate purposes. Note Hedge To minimize the impact of potential dilution upon conversion of the 2025 Notes, the Company entered into convertible note hedge transactions with respect to its common stock in May 2018 . The Company paid $261.7 million for the note hedge transactions. The note hedge transactions cover approximately 12.1 million shares of the Company’s common stock at a strike price that corresponds to the initial conversion price of the 2025 Notes, also subject to adjustment, and are exercisable upon conversion of the 2025 Notes. The note hedge transactions are intended to reduce dilution in the event of conversion of the 2025 Notes. Warrants Separately, in May 2018 , the Company entered into warrant transactions, whereby the Company sold warrants to acquire, subject to anti-dilution adjustments, up to 12.1 million shares of the Company’s common stock at a strike price of approximately $149.18 per share. The Company received aggregate proceeds of $119.9 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 2025 Notes to approximately $149.18 per share. Convertible Notes – Due 2019 In February 2014 , the Company issued $690.0 million in par value of convertible senior notes due 2019 (the "2019 Notes"). The 2019 Notes were senior unsecured obligations of the Company and did not bear regular interest. The 2019 Notes matured and were repaid in full on February 15, 2019 as no repurchases or conversions occurred prior to maturity. For further information, see Note 11 to the consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2018. Revolving Credit Facility In May 2018 , the Company entered into a $500.0 million five -year, revolving credit agreement (the “Credit Agreement”). Borrowings under the Credit Agreement may be used to finance working capital needs and for general corporate purposes. The Credit Agreement provides for an initial $500.0 million in revolving loans. Under specified circumstances, the facility can be increased to up to $1.0 billion in aggregate principal amount. Borrowings under the Credit Agreement bear interest, at the Company's option, at a base rate plus a spread of 0.00% to 0.25% or an adjusted LIBOR rate plus a spread of 0.875% to 1.25% , in each case with such spread being determined based on the Company's consolidated leverage ratio specified in the Credit Agreement. Regardless of what amounts, if any, are outstanding under the Credit Agreement, the Company is also obligated to pay an ongoing commitment fee on undrawn amounts at a rate of 0.075% to 0.15% , with such rate being based on the Company's consolidated leverage ratio specified in the Credit Agreement. The Credit Agreement contains customary representations and warranties, affirmative and negative covenants and events of default. Principal covenants include a maximum consolidated leverage ratio and a minimum consolidated interest coverage ratio. There were no outstanding borrowings under the Credit Agreement as of June 30, 2019 . Interest Expense The 2025 Notes bear interest at a fixed rate of 0.125% . The interest is payable semi-annually on May 1 and November 1 of each year, commencing in November 2018. The 2025 Notes have an effective interest rate of 4.26% attributable to the conversion feature. The 2019 Notes did not bear regular interest, but had an effective interest rate of 3.2% attributable to the conversion feature. The Company is also obligated to pay ongoing commitment fees under the terms of the Credit Agreement. The following table sets forth total interest expense included in the consolidated statements of income for the three and six months ended June 30, 2019 and 2018 (in thousands): For the Three Months For the Six Months 2019 2018 2019 2018 Amortization of debt discount and issuance costs $ 9,666 $ 9,917 $ 22,675 $ 15,749 Coupon interest payable on 2025 Notes 359 156 718 156 Revolving credit facility contractual interest expense 77 139 216 139 Capitalization of interest expense (1,656 ) (1,008 ) (3,047 ) (1,990 ) Total interest expense $ 8,446 $ 9,204 $ 20,562 $ 14,054 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The following table is a summary of the Company’s operating lease costs for the three and six months ended June 30, 2019 (in thousands, except years and rates): For the Three Months For the Six Months Real Estate Arrangements Co-location Arrangements Total Real Estate Arrangements Co-location Arrangements Total Operating lease cost $ 14,166 $ 23,944 $ 38,110 $ 28,989 $ 46,940 $ 75,929 Short-term lease cost 103 3,772 3,875 205 7,188 7,393 Variable lease cost 3,670 5,354 9,024 7,038 9,716 16,754 Sublease income (919 ) — (919 ) (1,952 ) — (1,952 ) Total operating lease costs $ 17,020 $ 33,070 $ 50,090 $ 34,280 $ 63,844 $ 98,124 Lease costs for real estate arrangements is included in general and administrative expenses in the consolidated statements of income. Lease costs for co-location arrangements is primarily included in cost of revenue. At June 30, 2019 , the real estate arrangements weighted average remaining lease term and weighted average discount rate for operating leases was 10.1 years and 4.1% , respectively. At June 30, 2019 , the co-location arrangements weighted average remaining lease term and weighted average discount rate for operating leases was 3.2 years and 2.9% , respectively. Maturities of operating lease liabilities as of June 30, 2019 were as follows (in thousands): Real Estate Arrangements Co-location Arrangements Remainder of 2019 $ 25,754 $ 44,924 2020 47,080 24,224 2021 43,223 9,167 2022 39,188 5,571 2023 37,826 3,850 Thereafter 196,659 9,902 Total lease payments 389,730 97,638 Less: imputed interest 86,873 5,273 Total lease liabilities $ 302,857 $ 92,365 As of June 30, 2019 , the Company has additional operating leases, primarily for real estate facilities, that have not yet commenced of $553.3 million . The majority of these operating leases will commence in 2019 and have a term of 15 years . The minimum aggregate future obligations under non-cancelable operating leases, including real estate and co-location arrangements, and bandwidth commitments as of December 31, 2018 were as follows (in thousands): Real Estate Arrangements Bandwidth and Co-location Arrangements 2019 $ 54,561 $ 138,777 2020 78,683 24,420 2021 75,991 8,463 2022 72,579 5,233 2023 70,101 2,156 Thereafter 599,339 3,709 Total $ 951,254 $ 182,758 |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the fourth quarter of 2018, management committed to an action to restructure certain parts of the Company with the intent of re-balancing investments with the goal of improving long-term growth and scale. As a result, certain headcount reductions were necessary and certain capitalized internal-use software charges were realized for software not yet placed into service that will not be completed and implemented due to this action. The Company has incurred restructuring charges of $19.3 million as part of this action, of which $7.0 million was recognized during the six months ended June 30, 2019. The Company does not expect significant additional restructuring charges related to this action. During the fourth quarter of 2017, management committed to an action to restructure certain parts of the Company with the intent of shifting focus to more critical areas of the business and away from products that have not seen expected commercial success. The restructuring was also intended to facilitate cost efficiencies and savings. As part of the cost efficiency and savings plans, certain headcount and facility reductions were made. The Company has incurred restructuring charges of $62.6 million as part of this action. There were insignificant charges related to these actions during the six months ended June 30, 2019, and no additional charges are expected. The Company also recognized restructuring charges for redundant employees, facilities and contracts associated with the Janrain acquisition completed in 2019. The following table summarizes the activity of the Company's restructuring accrual during the six months ended June 30, 2019 (in thousands): Employee Severance and Related Benefits Software Charges Excess Facilities, Contract Terminations and Other Total Balance as of January 1, 2019 $ 10,508 $ 198 $ 275 $ 10,981 Costs incurred 7,119 — 60 7,179 Cash disbursements (15,227 ) (99 ) (213 ) (15,539 ) Balance as of June 30, 2019 $ 2,400 $ 99 $ 122 $ 2,621 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Share Repurchase Program Effective November 2018, the Board authorized a $1.1 billion repurchase program through December 2021. During the three and six months ended June 30, 2019 , the Company repurchased 1.1 million and 1.5 million shares of its common stock, respectively, for $81.4 million and $116.2 million , respectively. The Company's goals for the share repurchase programs are 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. Stock-Based Compensation The following table summarizes stock-based compensation included in the Company’s consolidated statements of income for the three and six months ended June 30, 2019 and 2018 (in thousands): For the Three Months For the Six Months 2019 2018 2019 2018 Cost of revenue $ 5,793 $ 5,553 $ 11,362 $ 10,849 Research and development 12,044 10,926 24,101 21,435 Sales and marketing 15,740 16,749 30,791 32,708 General and administrative 14,565 14,269 27,193 27,191 Total stock-based compensation 48,142 47,497 93,447 92,183 Provision for income taxes (13,798 ) (18,802 ) (26,791 ) (29,890 ) Total stock-based compensation, net of income taxes $ 34,344 $ 28,695 $ 66,656 $ 62,293 In addition to the amounts of stock-based compensation reported in the table above, the Company’s consolidated statements of income for the three and six months ended June 30, 2019 include stock-based compensation reflected as a component of amortization of capitalized internal-use software of $7.3 million and $15.4 million , respectively, before taxes, and for the three and six months ended June 30, 2018 , include stock-based compensation reflected as a component of amortization of capitalized internal-use software of $5.8 million and $11.4 million , respectively, before taxes. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2019 | |
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, net of tax, which is reported as a component of stockholders' equity, for the six months ended June 30, 2019 (in thousands): Foreign Currency Translation Net Unrealized Losses on Investments Total Balance as of January 1, 2019 $ (51,904 ) $ 2,992 $ (48,912 ) Other comprehensive income 3,351 3,077 6,428 Balance as of June 30, 2019 $ (48,553 ) $ 6,069 $ (42,484 ) Amounts reclassified from accumulated other comprehensive loss to net income were insignificant for the six months ended June 30, 2019 . |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Incremental Costs to Obtain a Contract with a Customer The following table summarizes the deferred costs associated with obtaining customer contracts, specifically commission and incentive payments, as of June 30, 2019 and December 31, 2018 (in thousands): June 30, December 31, Deferred costs included in prepaid and other current assets $ 41,180 $ 41,955 Deferred costs included in other assets 21,857 26,338 Total deferred costs $ 63,037 $ 68,293 During the three and six months ended June 30, 2019 , the Company recognized $10.8 million and $21.6 million , respectively, of amortization expense related to deferred commissions. During the three and six months ended June 30, 2018 , the Company recognized $10.8 million and $21.7 million , respectively, of amortization expense related to deferred commissions. Amortization expense related to deferred commissions is primarily included in sales and marketing expense in the consolidated statements of income. The Company sells its solutions through a sales force located both domestically and abroad. Revenue derived from operations outside of the U.S. is determined based on the country in which the sale originated. Other than the U.S., no single country accounted for 10% or more of the Company’s total revenue for any reported period. The following table summarizes revenue by geography included in the Company’s consolidated statements of income for the three and six months ended June 30, 2019 and 2018 (in thousands): For the Three Months For the Six Months 2019 2018 2019 2018 U.S. $ 416,859 $ 413,129 $ 835,059 $ 836,468 International 288,215 249,630 576,523 495,015 Total revenue $ 705,074 $ 662,759 $ 1,411,582 $ 1,331,483 While the Company sells its solutions through a geographically dispersed sales force, it manages its customer relationships in two divisions: the Web Division and the Media and Carrier Division. Customers are assigned to a division for relationship management purposes according to their predominant purchasing activity; however, customers may purchase solutions managed by the other division as well. As of January 1, 2019, the Company reassigned some of its customers from the Media and Carrier Division to the Web Division and revised historical results in order to reflect the most recent categorization and to provide a comparable view for all periods presented. As the purchasing patterns and required account expertise of customers change over time, the Company may reassign a customer's division from one to another. The following table summarizes revenue by division included in the Company’s consolidated statements of income for the three and six months ended June 30, 2019 and 2018 (in thousands): For the Three Months For the Six Months 2019 2018 2019 2018 Web Division $ 380,374 $ 351,871 $ 756,649 $ 705,121 Media and Carrier Division 324,700 310,888 654,933 626,362 Total revenue $ 705,074 $ 662,759 $ 1,411,582 $ 1,331,483 Most content delivery and security services represent obligations that are satisfied over time as the customer simultaneously receives and consumes the services provided by the Company. Accordingly, the majority of the Company's revenue is recognized over time, generally ratably over the term of the arrangement due to consistent monthly traffic commitments that expire each period. A small percentage of the Company's services are satisfied at a point in time, such as one-time professional services contracts, integration services and most license sales where the primary obligation is delivery of the license at the start of the term. In these cases, revenue is recognized at a point in time of delivery or satisfaction of the performance obligation. During the six months ended June 30, 2019 and 2018 , the Company recognized $52.8 million and $56.6 million of revenue that was included in deferred revenue as of December 31, 2018 and 2017 , respectively. As of June 30, 2019 , the aggregate amount of remaining performance obligations from contracts with customers was $2.4 billion . The Company expects to recognize more than 70% of its remaining performance obligations as revenue over the next 12 months, with the remaining recognized thereafter. Remaining performance obligations represent the amount of the transaction price under contracts with customers that are attributable to performance obligations that are unsatisfied or partially satisfied at the reporting date. This consists of future committed revenue for monthly, quarterly or annual periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced in prior periods for which the related performance obligations have not been satisfied. It excludes estimates of variable consideration such as usage-based contracts with no committed contract as well as anticipated renewed contracts. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes 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. Potential discrete adjustments include tax charges or benefits related to stock-based compensation, changes in tax legislation, settlements of tax audits or assessments, uncertain tax positions and acquisitions, among other items. The Company is currently under audit in multiple jurisdictions and, in certain cases, is involved in litigation related to adverse audit determinations. In the second quarter of 2018, the Company filed an appeal with the Massachusetts Appellate Tax Board contesting the adverse audit findings related to certain tax benefits and exemptions. The Company has determined that it is more-likely-than-not that it will prevail, and no reserve has been recorded related to these controversies. Over the next 12 months, the Company’s current assumptions and positions could change based on audit determinations and other events impacting its analysis. Such events, if resolved unfavorably, could significantly impact the Company’s effective income tax rate and results of operations. The Company has estimated that an adverse ruling related to its Massachusetts controversy could result in an income tax charge of approximately $30.0 million . The Company’s effective income tax rate was 16.5% and 18.8% for the six months ended June 30, 2019 and 2018 , respectively. The lower effective tax rate for the six months ended June 30, 2019 , is primarily due to an increase in foreign income taxed at lower rates and a decrease to U.S. federal taxes on Global Intangible Low-Taxed Income ("GILTI"). These amounts were partially offset by an increase in the valuation allowance recorded against deferred tax assets related to state tax credits in which it is more likely than not that such credits will expire prior to utilization and an increase in non-deductible executive compensation. For the six months ended June 30, 2019 , the effective income tax rate was lower than the federal statutory tax rate due to foreign income taxed at lower rates, the excess tax benefit related to stock-based compensation and the benefit of U.S. federal, state and foreign research and development credits. These amounts were partially offset by the valuation allowance recorded against deferred tax assets related to state tax credits, non-deductible executive compensation, state taxes and an intercompany sale of intellectual property. For the six months ended June 30, 2018 , the effective income tax rate was lower than the federal statutory tax rate due to foreign income taxed at lower rates, the excess tax benefit related to stock-based compensation and the benefit of U.S. federal, state and foreign research and development credits, partially offset by the U.S. federal taxes on GILTI and an intercompany sale of intellectual property. |
Net Income per Share
Net Income per Share | 6 Months Ended |
Jun. 30, 2019 | |
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 and six months ended June 30, 2019 and 2018 (in thousands, except per share data): For the Three Months For the Six Months 2019 2018 2019 2018 Numerator: Net income $ 113,915 $ 43,061 $ 221,045 $ 96,775 Denominator: Shares used for basic net income per share 163,407 170,250 163,322 170,183 Effect of dilutive securities: Stock options 92 268 71 205 RSUs and DSUs 1,520 1,789 1,510 1,768 Convertible senior notes — — — — Warrants related to issuance of convertible senior notes — — — — Shares used for diluted net income per share 165,019 172,307 164,903 172,156 Basic net income per share $ 0.70 $ 0.25 $ 1.35 $ 0.57 Diluted net income per share $ 0.69 $ 0.25 $ 1.34 $ 0.56 For the three and six months ended June 30, 2019 and 2018 , certain potential outstanding common 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 common shares excluded from the computation of diluted net income per share for the three and six months ended June 30, 2019 and 2018 are as follows (in thousands): For the Three Months For the Six Months 2019 2018 2019 2018 Service-based RSUs 174 204 1,370 1,509 Performance-based RSUs 1,484 1,515 1,484 1,522 Convertible senior notes 12,093 19,797 12,093 19,797 Warrants related to issuance of convertible senior notes 12,093 19,797 12,093 19,797 Total shares excluded from computation 25,844 41,313 27,040 42,625 |
Significant Accounting Polici_2
Significant Accounting Policies Update (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting | 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, 2018 , filed with the Securities and Exchange Commission on February 28, 2019. 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 and Recent Accounting Pronouncements | Newly-Adopted Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued guidance that requires companies to present assets and liabilities arising from leases on the consolidated balance sheet. The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize right-of-use (“ROU”) assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The Company adopted this standard on January 1, 2019 on a modified retrospective basis by applying the new standard to its lease portfolio as of January 1, 2019, while continuing to apply legacy guidance in the comparative periods. The Company elected to use the package of practical expedients available under the transition provisions of the guidance, which allows companies to not reassess prior conclusions related to contracts containing leases, lease classification and capitalization of initial direct costs. The Company also elected not to apply the hindsight practical expedient related to its lease transactions. Adoption of the standard required the Company to record ROU assets and lease liabilities for its operating leases related to real estate and co-location arrangements. The operating leases resulted in the recognition of ROU assets and lease liabilities of $362.2 million and $394.1 million , respectively, as of January 1, 2019. The adoption of the standard also resulted in elimination of deferred rent liabilities of $31.7 million , as of January 1, 2019, that are now recorded as a reduction of the ROU asset. The standard did not have an impact on the Company’s results of operations or cash flows. Stranded Tax Effects Resulting from U.S. Tax Cuts and Jobs Act In February 2018, the FASB issued guidance that allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act ("TCJA") that was enacted in 2017. This guidance was effective for the Company on January 1, 2019. The adoption of this new accounting guidance resulted in the reclassification of $0.9 million of income tax benefits resulting from the TCJA from accumulated other comprehensive loss to accumulated deficit. The adoption of this new accounting guidance did not have an impact on the Company's results of operations or cash flows. Recent Accounting Pronouncements 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 August 2018, the FASB issued guidance which changes the fair value measurement disclosure requirements. This guidance will be effective for the Company on January 1, 2020. The Company is evaluating the impact the update will have on its disclosures. In August 2018, the FASB issued guidance which addresses a customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The guidance aligns the accounting for costs incurred to implement a cloud computing arrangement that is a service arrangement with the guidance for capitalizing costs associated with developing or obtaining internal-use software. 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. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, net of accumulated depreciation and amortization. Property and equipment generally includes purchases of items with a per-unit value greater than $1,000 and a useful life greater than one year . Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the assets. The Company periodically reviews the estimated useful lives of property and equipment. Changes to the estimated useful lives are recorded prospectively from the date of the change. Upon retirement or sale, the cost of the assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in income from operations. |
Operating Leases | Operating Leases The Company enters into operating leases for real estate assets related to office space and co-location assets related to space or racks at co-location facilities and related equipment for its servers and other networking equipment. The Company determines if an arrangement contains a lease at the inception of a contract by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset in exchange for consideration and the right to obtain the economic benefits from the use of the identified asset. Upon commencement of a lease, the Company records an ROU asset that represents the Company’s right to use the underlying asset for the lease term and a lease liability that represents an obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Lease payments are discounted at the lease commencement date using the rate implicit in the lease unless that rate is not readily determinable. As most of the Company’s leases do not provide an implicit rate, an incremental borrowing rate has been applied based on the Company's credit-adjusted risk-free rate. The incremental borrowing rate at January 1, 2019 (the date the new lease standard was adopted) was used to calculate the present value of the Company’s lease portfolio as of that date. The Company often enters into contracts that contain both lease and non-lease components. Real estate non-lease components include real estate taxes, insurance, maintenance, parking and other operating costs. Co-location non-lease components include utilities and other operating costs. As of January 1, 2019, the Company includes both lease and non-lease components of fixed costs in its lease arrangements as a single lease component. Variable costs, such as utilities based on actual usage, are not included in the measurement of ROU assets and lease liabilities, but are expensed when the event determining the amount of variable consideration to be paid occurs. The Company’s lease terms often include renewal options and, particularly in the case of co-location arrangements, may include evergreen provisions. The Company’s ROU assets and lease liabilities generally do not include the options to extend, or terminate, unless it is reasonably certain that the Company will exercise these options. The Company has elected to exclude leases for certain networking equipment with terms of 12 months or less from its ROU assets and lease liabilities on its consolidated balance sheet. Lease expense is recognized on a straight-line basis over the lease term. |
Equity Method Investments | Equity Method Investments |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Marketable Securities | The following is a summary of available-for-sale marketable securities held as of June 30, 2019 and December 31, 2018 (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 June 30, 2019 Commercial paper $ 13,558 $ 22 $ — $ 13,580 $ 13,580 $ — Corporate bonds 710,794 915 (691 ) 711,018 442,522 268,496 U.S. government agency obligations 75,257 19 (57 ) 75,219 70,215 5,004 $ 799,609 $ 956 $ (748 ) $ 799,817 $ 526,317 $ 273,500 As of December 31, 2018 Certificates of deposit $ 40,000 $ — $ (7 ) $ 39,993 $ 39,993 $ — Commercial paper 282,996 — (50 ) 282,946 282,946 — Corporate bonds 685,653 1 (4,309 ) 681,345 482,088 199,257 U.S. government agency obligations 50,876 — (404 ) 50,472 50,472 — $ 1,059,525 $ 1 $ (4,770 ) $ 1,054,756 $ 855,499 $ 199,257 |
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 June 30, 2019 and December 31, 2018 (in thousands): Total Fair Value Fair Value Measurements at Reporting Date Using Level 1 Level 2 Level 3 As of June 30, 2019 Cash Equivalents and Marketable Securities: Money market funds $ 2,550 $ 2,550 $ — $ — Commercial paper 13,580 — 13,580 — Corporate bonds 711,018 — 711,018 — U.S. government agency obligations 75,219 — 75,219 — Mutual funds 13,825 13,825 — — $ 816,192 $ 16,375 $ 799,817 $ — As of December 31, 2018 Cash Equivalents and Marketable Securities: Money market funds $ 380,260 $ 380,260 $ — $ — Certificates of deposit 39,993 39,993 — — Commercial paper 282,946 — 282,946 — Corporate bonds 681,345 — 681,345 — U.S. government agency obligations 50,472 — 50,472 — Mutual funds 10,016 10,016 — — $ 1,445,032 $ 430,269 $ 1,014,763 $ — Liabilities: Contingent consideration related to a completed acquisition $ (6,300 ) $ — $ — $ (6,300 ) |
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 June 30, 2019 and December 31, 2018 were as follows (in thousands): June 30, December 31, Due in 1 year or less $ 526,317 $ 855,499 Due after 1 year through 3 years 273,500 199,257 $ 799,817 $ 1,054,756 |
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 six months ended June 30, 2019 (in thousands): Other Liabilities: Balance as of January 1, 2019 $ (6,300 ) Cash paid upon achievement of milestone 6,300 Balance as of June 30, 2019 $ — |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of Accounts Receivable | Net accounts receivable consisted of the following as of June 30, 2019 and December 31, 2018 (in thousands): June 30, December 31, Trade accounts receivable $ 378,469 $ 337,445 Unbilled accounts receivable 146,525 143,978 Gross accounts receivable 524,994 481,423 Allowance for doubtful accounts and other reserves (1,612 ) (1,534 ) Accounts receivable, net $ 523,382 $ 479,889 |
Incremental Costs to Obtain a_2
Incremental Costs to Obtain a Contract with a Customer (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of deferred costs associated with obtaining customer contracts | The following table summarizes the deferred costs associated with obtaining customer contracts, specifically commission and incentive payments, as of June 30, 2019 and December 31, 2018 (in thousands): June 30, December 31, Deferred costs included in prepaid and other current assets $ 41,180 $ 41,955 Deferred costs included in other assets 21,857 26,338 Total deferred costs $ 63,037 $ 68,293 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of goodwill for the six months ended June 30, 2019 was as follows (in thousands): Balance as of January 1, 2019 $ 1,487,404 Acquisition of Janrain, Inc. 99,685 Foreign currency translation (447 ) Balance as of June 30, 2019 $ 1,586,642 |
Schedule of Acquired Intangible Assets | Acquired intangible assets that are subject to amortization consisted of the following as of June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Accumulated Net Completed technology $ 154,091 $ (91,103 ) $ 62,988 $ 145,091 $ (81,587 ) $ 63,504 Customer-related intangible assets 263,410 (153,970 ) 109,440 245,710 (144,786 ) 100,924 Non-compete agreements 730 (413 ) 317 700 (306 ) 394 Trademarks and trade names 7,400 (4,114 ) 3,286 7,200 (3,674 ) 3,526 Acquired license rights 490 (490 ) — 490 (490 ) — Total $ 426,121 $ (250,090 ) $ 176,031 $ 399,191 $ (230,843 ) $ 168,348 The following were the identifiable intangible assets acquired and their respective weighted average useful lives (in thousands, except years): Gross Carrying Amount Weighted Average Useful Life (in years) Completed technologies $ 9,000 3.0 Customer-related intangible assets 17,700 6.0 Trademarks 200 0.8 Non-compete agreements 30 1.0 Total $ 26,930 |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Allocation of the Purchase Price | The following table presents the preliminary allocation of the purchase price for Janrain (in thousands): Total purchase consideration $ 123,632 Allocation of the purchase consideration: Cash $ 2,223 Accounts receivable 7,318 Prepaid expenses and other current assets 838 Identifiable intangible assets 26,930 Goodwill 99,685 Deferred tax assets 5,124 Other assets 87 Total assets acquired 142,205 Accounts payable (1,641 ) Accrued expenses (2,596 ) Deferred revenue (14,336 ) Total liabilities assumed (18,573 ) Net assets acquired $ 123,632 |
Schedule of Acquired Intangible Assets | Acquired intangible assets that are subject to amortization consisted of the following as of June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Accumulated Net Completed technology $ 154,091 $ (91,103 ) $ 62,988 $ 145,091 $ (81,587 ) $ 63,504 Customer-related intangible assets 263,410 (153,970 ) 109,440 245,710 (144,786 ) 100,924 Non-compete agreements 730 (413 ) 317 700 (306 ) 394 Trademarks and trade names 7,400 (4,114 ) 3,286 7,200 (3,674 ) 3,526 Acquired license rights 490 (490 ) — 490 (490 ) — Total $ 426,121 $ (250,090 ) $ 176,031 $ 399,191 $ (230,843 ) $ 168,348 The following were the identifiable intangible assets acquired and their respective weighted average useful lives (in thousands, except years): Gross Carrying Amount Weighted Average Useful Life (in years) Completed technologies $ 9,000 3.0 Customer-related intangible assets 17,700 6.0 Trademarks 200 0.8 Non-compete agreements 30 1.0 Total $ 26,930 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Senior Notes | The 2025 Notes consisted of the following components as of June 30, 2019 and December 31, 2018 (in thousands): June 30, December 31, Liability component: Principal $ 1,150,000 $ 1,150,000 Less: debt discount and issuance costs, net of amortization (256,809 ) (275,920 ) Net carrying amount $ 893,191 $ 874,080 Equity component: $ 285,225 $ 285,225 |
Schedule of Interest Expense | The following table sets forth total interest expense included in the consolidated statements of income for the three and six months ended June 30, 2019 and 2018 (in thousands): For the Three Months For the Six Months 2019 2018 2019 2018 Amortization of debt discount and issuance costs $ 9,666 $ 9,917 $ 22,675 $ 15,749 Coupon interest payable on 2025 Notes 359 156 718 156 Revolving credit facility contractual interest expense 77 139 216 139 Capitalization of interest expense (1,656 ) (1,008 ) (3,047 ) (1,990 ) Total interest expense $ 8,446 $ 9,204 $ 20,562 $ 14,054 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The following table is a summary of the Company’s operating lease costs for the three and six months ended June 30, 2019 (in thousands, except years and rates): For the Three Months For the Six Months Real Estate Arrangements Co-location Arrangements Total Real Estate Arrangements Co-location Arrangements Total Operating lease cost $ 14,166 $ 23,944 $ 38,110 $ 28,989 $ 46,940 $ 75,929 Short-term lease cost 103 3,772 3,875 205 7,188 7,393 Variable lease cost 3,670 5,354 9,024 7,038 9,716 16,754 Sublease income (919 ) — (919 ) (1,952 ) — (1,952 ) Total operating lease costs $ 17,020 $ 33,070 $ 50,090 $ 34,280 $ 63,844 $ 98,124 |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of June 30, 2019 were as follows (in thousands): Real Estate Arrangements Co-location Arrangements Remainder of 2019 $ 25,754 $ 44,924 2020 47,080 24,224 2021 43,223 9,167 2022 39,188 5,571 2023 37,826 3,850 Thereafter 196,659 9,902 Total lease payments 389,730 97,638 Less: imputed interest 86,873 5,273 Total lease liabilities $ 302,857 $ 92,365 |
Minimum Aggregate Future Obligations Under Non-Cancelable Leases | The minimum aggregate future obligations under non-cancelable operating leases, including real estate and co-location arrangements, and bandwidth commitments as of December 31, 2018 were as follows (in thousands): Real Estate Arrangements Bandwidth and Co-location Arrangements 2019 $ 54,561 $ 138,777 2020 78,683 24,420 2021 75,991 8,463 2022 72,579 5,233 2023 70,101 2,156 Thereafter 599,339 3,709 Total $ 951,254 $ 182,758 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Accrual | The following table summarizes the activity of the Company's restructuring accrual during the six months ended June 30, 2019 (in thousands): Employee Severance and Related Benefits Software Charges Excess Facilities, Contract Terminations and Other Total Balance as of January 1, 2019 $ 10,508 $ 198 $ 275 $ 10,981 Costs incurred 7,119 — 60 7,179 Cash disbursements (15,227 ) (99 ) (213 ) (15,539 ) Balance as of June 30, 2019 $ 2,400 $ 99 $ 122 $ 2,621 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 and six months ended June 30, 2019 and 2018 (in thousands): For the Three Months For the Six Months 2019 2018 2019 2018 Cost of revenue $ 5,793 $ 5,553 $ 11,362 $ 10,849 Research and development 12,044 10,926 24,101 21,435 Sales and marketing 15,740 16,749 30,791 32,708 General and administrative 14,565 14,269 27,193 27,191 Total stock-based compensation 48,142 47,497 93,447 92,183 Provision for income taxes (13,798 ) (18,802 ) (26,791 ) (29,890 ) Total stock-based compensation, net of income taxes $ 34,344 $ 28,695 $ 66,656 $ 62,293 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, net of tax, which is reported as a component of stockholders' equity, for the six months ended June 30, 2019 (in thousands): Foreign Currency Translation Net Unrealized Losses on Investments Total Balance as of January 1, 2019 $ (51,904 ) $ 2,992 $ (48,912 ) Other comprehensive income 3,351 3,077 6,428 Balance as of June 30, 2019 $ (48,553 ) $ 6,069 $ (42,484 ) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes revenue by geography included in the Company’s consolidated statements of income for the three and six months ended June 30, 2019 and 2018 (in thousands): For the Three Months For the Six Months 2019 2018 2019 2018 U.S. $ 416,859 $ 413,129 $ 835,059 $ 836,468 International 288,215 249,630 576,523 495,015 Total revenue $ 705,074 $ 662,759 $ 1,411,582 $ 1,331,483 six months ended June 30, 2019 and 2018 (in thousands): For the Three Months For the Six Months 2019 2018 2019 2018 Web Division $ 380,374 $ 351,871 $ 756,649 $ 705,121 Media and Carrier Division 324,700 310,888 654,933 626,362 Total revenue $ 705,074 $ 662,759 $ 1,411,582 $ 1,331,483 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 and six months ended June 30, 2019 and 2018 (in thousands, except per share data): For the Three Months For the Six Months 2019 2018 2019 2018 Numerator: Net income $ 113,915 $ 43,061 $ 221,045 $ 96,775 Denominator: Shares used for basic net income per share 163,407 170,250 163,322 170,183 Effect of dilutive securities: Stock options 92 268 71 205 RSUs and DSUs 1,520 1,789 1,510 1,768 Convertible senior notes — — — — Warrants related to issuance of convertible senior notes — — — — Shares used for diluted net income per share 165,019 172,307 164,903 172,156 Basic net income per share $ 0.70 $ 0.25 $ 1.35 $ 0.57 Diluted net income per share $ 0.69 $ 0.25 $ 1.34 $ 0.56 |
Schedule of Shares Excluded from Computation of Diluted Earnings Per Share | The number of potentially outstanding common shares excluded from the computation of diluted net income per share for the three and six months ended June 30, 2019 and 2018 are as follows (in thousands): For the Three Months For the Six Months 2019 2018 2019 2018 Service-based RSUs 174 204 1,370 1,509 Performance-based RSUs 1,484 1,515 1,484 1,522 Convertible senior notes 12,093 19,797 12,093 19,797 Warrants related to issuance of convertible senior notes 12,093 19,797 12,093 19,797 Total shares excluded from computation 25,844 41,313 27,040 42,625 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019USD ($)segmentcountryserver | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of servers (more than) | server | 200,000 | ||
Number of countries in which servers are located (more than) | country | 130 | ||
Number of industry segments | segment | 1 | ||
Operating lease right-of-use assets | $ 359,128 | ||
Reclassification into retained earnings | $ (208,994) | $ (430,890) | |
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 362,200 | ||
Total lease liabilities | 394,100 | ||
Deferred rent liabilities | 31,700 | ||
Stranded Tax Effects Resulting from U.S. Tax Cuts and Jobs Act | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification into retained earnings | $ 900 |
Significant Accounting Polici_3
Significant Accounting Policies Update (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment per unit value minimum | $ 1,000 | $ 1,000 | |
Property and equipment useful life minimum | 1 year | ||
MUFG | |||
Property, Plant and Equipment [Line Items] | |||
Ownership percent | 20.00% | 20.00% | |
Equity method investment | $ 36,000,000 | $ 36,000,000 | |
Network assets | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | 4 years | |
Decrease to deprecation expense | 9,200,000 | $ 16,700,000 | |
Increase to net income | $ 7,600,000 | $ 13,900,000 | |
Increase to net income (in dollars per share) | $ 0.05 | $ 0.09 |
Fair Value Measurements - Marke
Fair Value Measurements - Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 799,609 | $ 1,059,525 |
Gross Unrealized Gains | 956 | 1 |
Gross Unrealized Losses | (748) | (4,770) |
Aggregate Fair Value | 799,817 | 1,054,756 |
Unrealized losses included in accumulated other comprehensive loss | 293,900 | |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 40,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (7) | |
Aggregate Fair Value | 39,993 | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 13,558 | 282,996 |
Gross Unrealized Gains | 22 | 0 |
Gross Unrealized Losses | 0 | (50) |
Aggregate Fair Value | 13,580 | 282,946 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 710,794 | 685,653 |
Gross Unrealized Gains | 915 | 1 |
Gross Unrealized Losses | (691) | (4,309) |
Aggregate Fair Value | 711,018 | 681,345 |
Available-for-sale marketable securities, continuous unrealized loss position for more than 12 months | (600) | |
U.S. government agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 75,257 | 50,876 |
Gross Unrealized Gains | 19 | 0 |
Gross Unrealized Losses | (57) | (404) |
Aggregate Fair Value | 75,219 | 50,472 |
Short-Term Marketable Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Aggregate Fair Value | 526,317 | 855,499 |
Short-Term Marketable Securities | Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Aggregate Fair Value | 39,993 | |
Short-Term Marketable Securities | Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Aggregate Fair Value | 13,580 | 282,946 |
Short-Term Marketable Securities | Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Aggregate Fair Value | 442,522 | 482,088 |
Short-Term Marketable Securities | U.S. government agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Aggregate Fair Value | 70,215 | 50,472 |
Long-Term Marketable Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Aggregate Fair Value | 273,500 | 199,257 |
Long-Term Marketable Securities | Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Aggregate Fair Value | 0 | |
Long-Term Marketable Securities | Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Aggregate Fair Value | 0 | 0 |
Long-Term Marketable Securities | Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Aggregate Fair Value | 268,496 | 199,257 |
Long-Term Marketable Securities | U.S. government agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Aggregate Fair Value | $ 5,004 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurement (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | $ 799,817 | $ 1,054,756 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 39,993 | |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 13,580 | 282,946 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 711,018 | 681,345 |
U.S. government agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 75,219 | 50,472 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents and marketable securities | 16,375 | 430,269 |
Contingent consideration related to a completed acquisition | 0 | |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 2,550 | 380,260 |
Level 1 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 39,993 | |
Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 0 | 0 |
Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 0 | 0 |
Level 1 | U.S. government agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 0 | 0 |
Level 1 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 13,825 | 10,016 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents and marketable securities | 799,817 | 1,014,763 |
Contingent consideration related to a completed acquisition | 0 | |
Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 0 | |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 13,580 | 282,946 |
Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 711,018 | 681,345 |
Level 2 | U.S. government agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 75,219 | 50,472 |
Level 2 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents and marketable securities | 0 | 0 |
Contingent consideration related to a completed acquisition | 0 | (6,300) |
Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Level 3 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 0 | |
Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 0 | 0 |
Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 0 | 0 |
Level 3 | U.S. government agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 0 | 0 |
Level 3 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 0 | 0 |
Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents and marketable securities | 816,192 | 1,445,032 |
Contingent consideration related to a completed acquisition | (6,300) | |
Total Fair Value | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 2,550 | 380,260 |
Total Fair Value | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 39,993 | |
Total Fair Value | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 13,580 | 282,946 |
Total Fair Value | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 711,018 | 681,345 |
Total Fair Value | U.S. government agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 75,219 | 50,472 |
Total Fair Value | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | $ 13,825 | $ 10,016 |
Fair Value Measurements - Contr
Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Due in 1 year or less | $ 526,317 | $ 855,499 |
Due after 1 year through 3 years | 273,500 | 199,257 |
Aggregate Fair Value | $ 799,817 | $ 1,054,756 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Liability Measured at Fair Value using Level 3 Inputs (Details) - Level 3 $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance as of January 1, 2019 | $ (6,300) |
Cash paid upon achievement of milestone | 6,300 |
Balance as of June 30, 2019 | $ 0 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | $ 524,994 | $ 481,423 |
Allowance for doubtful accounts and other reserves | (1,612) | (1,534) |
Accounts receivable, net | 523,382 | 479,889 |
Unbilled accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | 146,525 | 143,978 |
Trade accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | $ 378,469 | $ 337,445 |
Incremental Costs to Obtain a_3
Incremental Costs to Obtain a Contract with a Customer (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Commission and incentive payments | |||||
Capitalized Contract Cost [Line Items] | |||||
Total deferred costs | $ 63,037 | $ 63,037 | $ 68,293 | ||
Commission and incentive payments | Deferred costs included in prepaid and other current assets | |||||
Capitalized Contract Cost [Line Items] | |||||
Total deferred costs | 41,180 | 41,180 | 41,955 | ||
Commission and incentive payments | Deferred costs included in other assets | |||||
Capitalized Contract Cost [Line Items] | |||||
Total deferred costs | 21,857 | 21,857 | $ 26,338 | ||
Deferred commissions | |||||
Capitalized Contract Cost [Line Items] | |||||
Amortization expense | $ 10,800 | $ 10,800 | $ 21,600 | $ 21,700 |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Schedule of Goodwill [Roll Forward] | |
Balance as of January 1, 2019 | $ 1,487,404 |
Acquisition of Janrain, Inc. | 99,685 |
Foreign currency translation | (447) |
Balance as of June 30, 2019 | $ 1,586,642 |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 426,121 | $ 399,191 |
Accumulated Amortization | (250,090) | (230,843) |
Net Carrying Amount | 176,031 | 168,348 |
Completed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 154,091 | 145,091 |
Accumulated Amortization | (91,103) | (81,587) |
Net Carrying Amount | 62,988 | 63,504 |
Customer-related intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 263,410 | 245,710 |
Accumulated Amortization | (153,970) | (144,786) |
Net Carrying Amount | 109,440 | 100,924 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 730 | 700 |
Accumulated Amortization | (413) | (306) |
Net Carrying Amount | 317 | 394 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,400 | 7,200 |
Accumulated Amortization | (4,114) | (3,674) |
Net Carrying Amount | 3,286 | 3,526 |
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 Intangi_5
Goodwill and Acquired Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of acquired intangible assets | $ 9,648 | $ 8,294 | $ 19,247 | $ 16,725 |
Future amortization expense to be recognized in remainder of 2019 | 19,300 | 19,300 | ||
Future amortization expense 2020 | 36,900 | 36,900 | ||
Future amortization expense 2021 | 32,000 | 32,000 | ||
Future amortization expense 2022 | 26,200 | 26,200 | ||
Future amortization expense 2023 | $ 20,300 | $ 20,300 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended |
Jan. 31, 2019 | Jun. 30, 2019 | |
Janrain, Inc. | ||
Business Acquisition [Line Items] | ||
Cash consideration | $ 123.6 | |
Goodwill expected to be tax deductible | $ 42.5 | |
Weighted average useful life | 5 years | |
General and administrative | ||
Business Acquisition [Line Items] | ||
Acquisition-related costs | $ 1 |
Business Combinations - Schedul
Business Combinations - Schedule of Preliminary Allocation of the Purchase Price (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Jan. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Allocation of the purchase consideration: | |||
Goodwill | $ 1,586,642 | $ 1,487,404 | |
Janrain, Inc. | |||
Business Acquisition [Line Items] | |||
Total purchase consideration | $ 123,632 | ||
Allocation of the purchase consideration: | |||
Cash | 2,223 | ||
Accounts receivable | 7,318 | ||
Prepaids and other current assets | 838 | ||
Identifiable intangible assets | 26,930 | ||
Goodwill | 99,685 | ||
Deferred tax assets | 5,124 | ||
Other assets | 87 | ||
Total assets acquired | 142,205 | ||
Accounts payable | (1,641) | ||
Accrued liabilities | (2,596) | ||
Deferred revenue | (14,336) | ||
Total liabilities assumed | (18,573) | ||
Net assets acquired | $ 123,632 |
Business Combinations - Sched_2
Business Combinations - Schedule of Acquired Intangible Assets (Details) - Janrain, Inc. $ in Thousands | 1 Months Ended |
Jan. 31, 2019USD ($) | |
Business Acquisition [Line Items] | |
Gross carrying amount | $ 26,930 |
Weighted average useful life | 5 years |
Completed technology | |
Business Acquisition [Line Items] | |
Gross carrying amount | $ 9,000 |
Weighted average useful life | 3 years |
Customer-related intangible assets | |
Business Acquisition [Line Items] | |
Gross carrying amount | $ 17,700 |
Weighted average useful life | 6 years |
Trademarks | |
Business Acquisition [Line Items] | |
Gross carrying amount | $ 200 |
Weighted average useful life | 9 months 18 days |
Non-compete agreements | |
Business Acquisition [Line Items] | |
Gross carrying amount | $ 30 |
Weighted average useful life | 1 year |
Commitments and Contingencies -
Commitments and Contingencies - Legal Matters (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Multiple existing lawsuits between Limelight Networks, Inc. (Limelight) and the Company | Settled Litigation | |
Loss Contingencies [Line Items] | |
Settlement charge | $ 14.9 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
May 31, 2018USD ($)d$ / sharesshares | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 28, 2019$ / shares | Dec. 31, 2018USD ($) | Feb. 28, 2014USD ($) | |
Debt Instrument [Line Items] | |||||||
Repurchases of common stock | $ 81,400,000 | $ 116,247,000 | $ 185,512,000 | ||||
Payments for note hedge transactions | 0 | 261,740,000 | |||||
Proceeds from sale of warrants | 0 | $ 119,945,000 | |||||
Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 500,000,000 | ||||||
Maximum borrowing capacity under specific conditions | $ 1,000,000,000 | ||||||
Debt term | 5 years | ||||||
Outstanding borrowings | 0 | $ 0 | |||||
Credit Agreement | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee | 0.075% | ||||||
Credit Agreement | Minimum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.00% | ||||||
Credit Agreement | Minimum | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.875% | ||||||
Credit Agreement | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee | 0.15% | ||||||
Credit Agreement | Maximum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.25% | ||||||
Credit Agreement | Maximum | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.25% | ||||||
2025 Notes | Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt issued | $ 1,150,000,000 | 1,150,000,000 | $ 1,150,000,000 | $ 1,150,000,000 | |||
Interest rate | 0.125% | ||||||
Threshold trading days exceeding price | d | 20 | ||||||
Threshold consecutive trading days exceeding price | d | 30 | ||||||
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 | ||||||
Principal amount per conversion | $ 1,000 | ||||||
Threshold less than percentage of stock price trigger | 98.00% | ||||||
Conversion rate | 0.010515 | ||||||
Conversion price (in dollars per share) | $ / shares | $ 95.10 | ||||||
Potential conversion shares of convertible debt (in shares) | shares | 12.1 | ||||||
Fair value of convertible senior notes | $ 1,234,000,000 | $ 1,234,000,000 | |||||
Closing price of common stock (in dollars per share) | $ / shares | $ 80.14 | ||||||
Repurchases of common stock | $ 46,200,000 | ||||||
Payments for purchase of convertible note hedge and warrant transactions | 141,800,000 | ||||||
Payments for note hedge transactions | $ 261,700,000 | ||||||
Warrants outstanding (in shares) | shares | 12.1 | ||||||
Warrant strike price (in dollars per share) | $ / shares | $ 149.18 | ||||||
Proceeds from sale of warrants | $ 119,900,000 | ||||||
Effective interest rate | 4.26% | 4.26% | |||||
2019 Notes | Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt issued | $ 690,000,000 | ||||||
Effective interest rate | 3.20% | 3.20% |
Debt - Schedule of Convertible
Debt - Schedule of Convertible Senior Notes (Details) - 2025 Notes - Convertible Debt - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | May 31, 2018 |
Liability component: | |||
Principal | $ 1,150,000,000 | $ 1,150,000,000 | $ 1,150,000,000 |
Less: debt discount and issuance costs, net of amortization | (256,809,000) | (275,920,000) | |
Net carrying amount | 893,191,000 | 874,080,000 | |
Equity component: | $ 285,225,000 | $ 285,225,000 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Instrument [Line Items] | ||||
Amortization of debt discount and issuance costs | $ 9,666 | $ 9,917 | $ 22,675 | $ 15,749 |
Capitalization of interest expense | (1,656) | (1,008) | (3,047) | (1,990) |
Total interest expense | 8,446 | 9,204 | 20,562 | 14,054 |
Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Interest on debt instruments | 77 | 139 | 216 | 139 |
Convertible Debt | 2025 Notes | ||||
Debt Instrument [Line Items] | ||||
Interest on debt instruments | $ 359 | $ 156 | $ 718 | $ 156 |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 38,110 | $ 75,929 |
Short-term lease cost | 3,875 | 7,393 |
Variable lease cost | 9,024 | 16,754 |
Sublease income | (919) | (1,952) |
Total operating lease costs | 50,090 | 98,124 |
Operating leases for real estate facilities that have not yet commenced | $ 553,300 | $ 553,300 |
operating leases for real estate facilities that have not yet commenced term | 15 years | |
Real Estate Arrangements | ||
Lessee, Lease, Description [Line Items] | ||
Weighted average remaining lease term (in years) | 10 years 1 month 6 days | 10 years 1 month 6 days |
Weighted average discount rate | 4.10% | 4.10% |
Remainder of 2019 | $ 25,754 | $ 25,754 |
2020 | 47,080 | 47,080 |
2021 | 43,223 | 43,223 |
2022 | 39,188 | 39,188 |
2023 | 37,826 | 37,826 |
Thereafter | 196,659 | 196,659 |
Total lease payments | 389,730 | 389,730 |
Less: imputed interest | 86,873 | 86,873 |
Total lease liabilities | 302,857 | 302,857 |
Real Estate Arrangements | General and administrative | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 14,166 | 28,989 |
Short-term lease cost | 103 | 205 |
Variable lease cost | 3,670 | 7,038 |
Sublease income | (919) | (1,952) |
Total operating lease costs | $ 17,020 | $ 34,280 |
Co-location Arrangements | ||
Lessee, Lease, Description [Line Items] | ||
Weighted average remaining lease term (in years) | 3 years 2 months 12 days | 3 years 2 months 12 days |
Weighted average discount rate | 2.90% | 2.90% |
Remainder of 2019 | $ 44,924 | $ 44,924 |
2020 | 24,224 | 24,224 |
2021 | 9,167 | 9,167 |
2022 | 5,571 | 5,571 |
2023 | 3,850 | 3,850 |
Thereafter | 9,902 | 9,902 |
Total lease payments | 97,638 | 97,638 |
Less: imputed interest | 5,273 | 5,273 |
Total lease liabilities | 92,365 | 92,365 |
Co-location Arrangements | Cost of revenues | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 23,944 | 46,940 |
Short-term lease cost | 3,772 | 7,188 |
Variable lease cost | 5,354 | 9,716 |
Sublease income | 0 | 0 |
Total operating lease costs | $ 33,070 | $ 63,844 |
Leases - Minimum Aggregate Futu
Leases - Minimum Aggregate Future Obligations Under Non-cancelable Leases and Narrative (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Real Estate Arrangements | |
Lessee, Lease, Description [Line Items] | |
2019 | $ 54,561 |
2020 | 78,683 |
2021 | 75,991 |
2022 | 72,579 |
2023 | 70,101 |
Thereafter | 599,339 |
Total | 951,254 |
Bandwidth and Co-location Arrangements | |
Lessee, Lease, Description [Line Items] | |
2019 | 138,777 |
2020 | 24,420 |
2021 | 8,463 |
2022 | 5,233 |
2023 | 2,156 |
Thereafter | 3,709 |
Total | $ 182,758 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 21 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges incurred | $ 7,000 | $ 19,300 | $ 62,600 | |||
Restructuring Reserve [Roll Forward] | ||||||
Balance as of January 1, 2019 | 10,981 | |||||
Costs incurred | $ 790 | $ 266 | 7,179 | $ 15,174 | ||
Cash disbursements | (15,539) | |||||
Balance as of June 30, 2019 | 2,621 | 2,621 | 2,621 | 2,621 | ||
Employee Severance and Related Benefits | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance as of January 1, 2019 | 10,508 | |||||
Costs incurred | 7,119 | |||||
Cash disbursements | (15,227) | |||||
Balance as of June 30, 2019 | 2,400 | 2,400 | 2,400 | 2,400 | ||
Software Charges | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance as of January 1, 2019 | 198 | |||||
Costs incurred | 0 | |||||
Cash disbursements | (99) | |||||
Balance as of June 30, 2019 | 99 | 99 | 99 | 99 | ||
Excess Facilities, Contract Terminations and Other | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance as of January 1, 2019 | 275 | |||||
Costs incurred | 60 | |||||
Cash disbursements | (213) | |||||
Balance as of June 30, 2019 | $ 122 | $ 122 | $ 122 | $ 122 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) shares in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Nov. 30, 2018 | |
Class of Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 1,100,000,000 | ||||
Repurchases of common stock | $ (81,400,000) | $ (116,247,000) | $ (185,512,000) | ||
Amortization expense from capitalized stock-based compensation | $ 7,300,000 | $ 5,800,000 | $ 15,400,000 | $ 11,400,000 | |
Common Stock | |||||
Class of Stock [Line Items] | |||||
Shares repurchased during period (in shares) | 1.1 | 1.5 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Based Compensation Expense (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] | ||||
Total stock-based compensation | $ 48,142 | $ 47,497 | $ 93,447 | $ 92,183 |
Provision for income taxes | (13,798) | (18,802) | (26,791) | (29,890) |
Total stock-based compensation, net of income taxes | 34,344 | 28,695 | 66,656 | 62,293 |
Cost of revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 5,793 | 5,553 | 11,362 | 10,849 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 12,044 | 10,926 | 24,101 | 21,435 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 15,740 | 16,749 | 30,791 | 32,708 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 14,565 | $ 14,269 | $ 27,193 | $ 27,191 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income Loss (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning Balance | $ 3,191,860 |
Other comprehensive income | 6,428 |
Ending Balance | 3,394,764 |
Total | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning Balance | (48,912) |
Ending Balance | (42,484) |
Foreign Currency Translation | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning Balance | (51,904) |
Other comprehensive income | 3,351 |
Ending Balance | (48,553) |
Net Unrealized Losses on Investments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning Balance | 2,992 |
Other comprehensive income | 3,077 |
Ending Balance | $ 6,069 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)division | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)division | Jun. 30, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 705,074 | $ 662,759 | $ 1,411,582 | $ 1,331,483 |
Number of divisions | division | 2 | 2 | ||
Web Division | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 380,374 | 351,871 | $ 756,649 | 705,121 |
Media and Carrier Division | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 324,700 | 310,888 | 654,933 | 626,362 |
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 416,859 | 413,129 | 835,059 | 836,468 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 288,215 | $ 249,630 | $ 576,523 | $ 495,015 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Performance Obligation (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized | $ 52.8 | $ 56.6 |
Remaining performance obligation | $ 2,400 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations, percentage | 70.00% | |
Remaining performance obligation, expected timing | 1 year |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Estimated income tax charge | $ 30 | |
Effective income tax rate | 16.50% | 18.80% |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net income (in dollars) | $ 113,915 | $ 43,061 | $ 221,045 | $ 96,775 |
Denominator: | ||||
Shares used for basic net income per share (in shares) | 163,407 | 170,250 | 163,322 | 170,183 |
Effect of dilutive securities: | ||||
Stock options (in shares) | 92 | 268 | 71 | 205 |
RSUs and DSUs (in shares) | 1,520 | 1,789 | 1,510 | 1,768 |
Convertible senior notes (in shares) | 0 | 0 | 0 | 0 |
Warrants related to issuance of convertible senior notes (in shares) | 0 | 0 | 0 | 0 |
Shares used for diluted net income per share (in shares) | 165,019 | 172,307 | 164,903 | 172,156 |
Basic net income per share (in dollars per share) | $ 0.70 | $ 0.25 | $ 1.35 | $ 0.57 |
Diluted net income per share (in dollars per share) | $ 0.69 | $ 0.25 | $ 1.34 | $ 0.56 |
Net Income per Share - Schedu_2
Net Income per Share - Schedule of Shares Excluded from Computation of 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 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities | 25,844 | 41,313 | 27,040 | 42,625 |
Service-based RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities | 174 | 204 | 1,370 | 1,509 |
Performance-based RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities | 1,484 | 1,515 | 1,484 | 1,522 |
Convertible senior notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities | 12,093 | 19,797 | 12,093 | 19,797 |
Warrants related to issuance of convertible senior notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities | 12,093 | 19,797 | 12,093 | 19,797 |