Akamai (AKAM) 10-K 1 Mar 10 2009 FY Annual report Financial data

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Thousands	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$181,305	$156,074
Marketable securities (including restricted securities of $602 and $3,460 at December 31, 2009 and 2008, respectively)	385,436	174,557
Accounts receivable, net of reserves of $10,579 and $11,270 at December 31, 2009 and 2008, respectively	154,269	139,612
Prepaid expenses and other current assets	31,649	27,124
Deferred income tax assets	8,514	4,542
Total current assets	761,173	501,909
Property and equipment, net	182,404	174,483
Marketable securities (including restricted securities of $36 and $153 at December 31, 2009 and 2008, respectively)	494,743	440,996
Goodwill	441,347	441,258
Other intangible assets, net	76,273	92,995
Deferred income tax assets	127,154	223,718
Other assets	4,416	5,592
Total assets	2,087,510	1,880,951
Current liabilities:
Accounts payable	23,997	21,165
Accrued expenses and other current liabilities	68,566	66,132
Deferred revenue	34,184	11,506
Accrued restructuring	791	1,653
1% convertible senior notes, current portion	199,755	0
Total current liabilities	327,293	100,456
Deferred revenue	2,677	1,251
Other liabilities	18,818	10,619
1% convertible senior notes	0	199,855
Total liabilities	348,788	312,181
Stockholders' equity:
Preferred stock, $0.01 par value; 5,000,000 shares authorized; 700,000 shares designated as Series A Junior Participating Preferred Stock; no shares issued or outstanding	0	0
Common stock, $0.01 par value; 700,000,000 shares authorized; 174,575,502 shares issued and 171,248,356 shares outstanding at December 31, 2009; 169,371,675 shares issued and outstanding at December 31, 2008	1,746	1,694
Additional paid-in capital	4,615,774	4,539,154
Treasury stock, at cost, 3,327,146 shares at December 31, 2009	(66,301)	0
Accumulated other comprehensive income (loss)	(10,682)	(24,350)
Accumulated deficit	(2,801,815)	(2,947,728)
Total stockholders' equity	1,738,722	1,568,770
Total liabilities and stockholders' equity	$2,087,510	$1,880,951

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
In Thousands, except Share data	Dec. 31, 2009	Dec. 31, 2008
Marketable securities, restricted securities	$602	$3,460
Accounts receivable, reserves	10,579	11,270
Marketable securities, restricted securities	$36	$153
Preferred stock, par value	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	0.01	0.01
Common stock, shares authorized	700,000,000	700,000,000
Common stock, shares issued	174,575,502	169,371,675
Common stock, shares outstanding	171,248,356	169,371,675
Treasury stock, shares	3,327,146	0

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Thousands, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues	$859,773	$790,924	$636,406
Cost and operating expenses:
Cost of revenues	249,938	222,610	167,444
Research and development	43,658	39,243	44,141
Sales and marketing	179,421	164,365	147,556
General and administrative	146,100	136,028	121,101
Amortization of other intangible assets	16,722	13,905	11,414
Restructuring charge (benefit)	454	2,509	(178)
Total cost and operating expenses	636,293	578,660	491,478
Income from operations	223,480	212,264	144,928
Interest income	15,643	24,792	25,815
Interest expense	(2,839)	(2,825)	(3,086)
Other income, net	163	461	527
Gain (loss) on investments, net	785	(157)	24
Loss on early extinguishment of debt	0	0	(3)
Income before provision for income taxes	237,232	234,535	168,205
Provision for income taxes	91,319	89,397	67,238
Net income	$145,913	$145,138	$100,967
Net income per weighted average share:
Basic	0.85	0.87	0.62
Diluted	0.78	0.79	0.56
Shares used in per share calculations:
Basic	171,425	167,673	162,959
Diluted	188,658	186,685	185,094

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash flows from operating activities:
Net income	$145,913	$145,138	$100,967
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	122,494	98,080	71,895
Amortization of deferred financing costs	840	840	840
Stock-based compensation	58,797	57,899	66,555
Provision for deferred income taxes, net	81,706	81,698	65,272
Provision for doubtful accounts	6,727	2,575	2,901
Excess tax benefit from stock-based compensation	(2,236)	(11,176)	(20,862)
Non-cash portion of loss on early extinguishment of debt	0	0	3
Non-cash portion of restructuring charge (benefit)	0	(842)	(178)
(Gains) losses on investments and disposal of property and equipment, net	(391)	242	23
Gain on divesture of certain assets	(1,062)	0	0
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable	(1,159)	(21,474)	(31,937)
Prepaid expenses and other current assets	(5,020)	(5,471)	(12,009)
Accounts payable, accrued expenses and other current liabilities	10,255	(4,181)	(12,965)
Deferred revenue	5,871	(1,492)	5,297
Accrued restructuring	(1,067)	1,216	(2,722)
Other non-current assets and liabilities	2,744	442	3,874
Net cash provided by operating activities	424,412	343,494	236,954
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired	(5,779)	(83,719)	7,875
Purchases of property and equipment	(80,918)	(90,369)	(81,405)
Capitalization of internal-use software costs	(27,229)	(25,017)	(19,057)
Purchases of short- and long-term marketable securities	(790,351)	(533,069)	(550,614)
Proceeds from sales of short- and long-term marketable securities	403,559	182,255	258,366
Proceeds from maturities of short- and long-term marketable securities	141,544	185,397	157,405
Proceeds from sale of property and equipment	93	82	0
Proceeds from divesture of certain assets	1,350	0	0
Decrease in restricted investments held for security deposits	233	0	723
Net cash used in investing activities	(357,498)	(364,440)	(226,707)
Cash flows from financing activities:
Proceeds from the issuance of common stock under stock option and employee stock purchase plans	21,724	21,966	31,621
Excess tax benefits from stock-based compensation	2,236	11,176	20,862
Repurchases of common stock	(66,497)	0	0
Payments on capital leases	0	0	(23)
Net cash (used in) provided by financing activities	(42,537)	33,142	52,460
Effect of exchange rate changes on cash and cash equivalents	854	(1,200)	1,776
Net increase in cash and cash equivalents	25,231	10,996	64,483
Cash and cash equivalents at beginning of year	156,074	145,078	80,595
Cash and cash equivalents at end of year	181,305	156,074	145,078
Supplemental disclosure of cash flow information:
Cash paid for interest	1,998	1,999	2,005
Cash paid for income taxes	20,989	11,870	3,147
Non-cash financing and investing activities:
Capitalization of stock-based compensation, net of impairments	6,280	7,436	6,353
Common stock and vested stock options issued in connection with acquisitions of businesses	0	0	171,957
Common stock issued upon conversion of 1% convertible senior notes	100	0	145
Common stock returned upon settlement of escrow claims related to prior business acquisitions	($427)	($3,126)	($177)

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Thousands, except Share data	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total
Beginning Balance at Dec. 31, 2006	$1,603	$4,145,627	$0	$1,296	($3,193,833)	$954,693
Beginning Balance (in shares) at Dec. 31, 2006	160,298,922
Comprehensive income:
Net income					100,967	100,967
Foreign currency translation adjustment				1,343		1,343
Change in unrealized gain (loss) on available-for-sale marketable securities, net of tax				414		414
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units (in shares)	2,803,496
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units	28	21,930				21,958
Issuance of common stock under employee stock purchase plan (in shares)	279,356
Issuance of common stock under employee stock purchase plan	3	9,667				9,670
Stock-based compensation		72,770				72,770
Common stock returned upon settlement of escrow claims related to prior business acquisitions (in shares)	(3,525)
Common stock returned upon settlement of escrow claims related to prior business acquisitions		(177)				(177)
Issuance of common stock for acquisitions of businesses (in shares)	2,825,010
Issuance of common stock for acquisitions of businesses	28	157,808				157,836
Stock options issued in acquisitions of businesses		14,121				14,121
Issuance of common stock upon conversion of 1% convertible senior notes (in shares)	9,379
Issuance of common stock upon conversion of 1% convertible senior notes		145				145
Tax benefits (shortfalls) from stock-based award activity, net		24,672				24,672
Stock-based compensation from awards issued to non-employees for services rendered		140				140
Ending Balance (in shares) at Dec. 31, 2007	166,212,638
Ending Balance at Dec. 31, 2007	1,662	4,446,703	0	3,053	(3,092,866)	1,358,552
Comprehensive income:
Net income					145,138	145,138
Foreign currency translation adjustment				(4,038)		(4,038)
Change in unrealized gain (loss) on available-for-sale marketable securities, net of tax				(23,365)		(23,365)
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units (in shares)	2,920,692
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units	29	14,734				14,763
Issuance of common stock under employee stock purchase plan (in shares)	348,584
Issuance of common stock under employee stock purchase plan	4	7,199				7,203
Stock-based compensation		64,513				64,513
Common stock returned upon settlement of escrow claims related to prior business acquisitions (in shares)	(110,239)
Common stock returned upon settlement of escrow claims related to prior business acquisitions	(1)	(3,125)				(3,126)
Tax benefits (shortfalls) from stock-based award activity, net		9,133				9,133
Stock-based compensation from awards issued to non-employees for services rendered		(3)				(3)
Ending Balance (in shares) at Dec. 31, 2008	169,371,675
Ending Balance at Dec. 31, 2008	1,694	4,539,154	0	(24,350)	(2,947,728)	1,568,770
Comprehensive income:
Net income					145,913	145,913
Foreign currency translation adjustment				1,933		1,933
Change in unrealized gain (loss) on available-for-sale marketable securities, net of tax				11,735		11,735
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units (in shares)	4,479,139
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units	45	11,983				12,028
Issuance of common stock under employee stock purchase plan (in shares)	727,449
Issuance of common stock under employee stock purchase plan	7	9,794				9,801
Stock-based compensation		65,004				65,004
Common stock returned upon settlement of escrow claims related to prior business acquisitions (in shares)	(9,233)
Common stock returned upon settlement of escrow claims related to prior business acquisitions		(427)				(427)
Issuance of common stock upon conversion of 1% convertible senior notes (in shares)	6,472
Issuance of common stock upon conversion of 1% convertible senior notes		100				100
Tax benefits (shortfalls) from stock-based award activity, net		(9,880)				(9,880)
Stock-based compensation from awards issued to non-employees for services rendered		46				46
Repurchases of common stock (in shares)	(3,327,146)
Repurchases of common stock			(66,301)			(66,301)
Ending Balance (in shares) at Dec. 31, 2009	171,248,356
Ending Balance at Dec. 31, 2009	$1,746	$4,615,774	($66,301)	($10,682)	($2,801,815)	$1,738,722

Nature of Business and Basis of

Nature of Business and Basis of Presentation:
	12 Months Ended Dec. 31, 2009 USD / shares
Nature of Business and Basis of Presentation:	1. Nature of Business and Basis of Presentation: Akamai Technologies, Inc. (Akamai or the Company) provides services for accelerating and improving the delivery of content and applications over the Internet. Akamais globally distributed platform comprises thousands of servers in hundreds of networks in approximately 70 countries. The Company was incorporated in Delaware in 1998 and is headquartered in Cambridge, Massachusetts. Akamai currently operates in one industry segment: providing services for accelerating and improving the delivery of content and applications over the Internet. The accompanying consolidated financial statements include the accounts of Akamai and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in the accompanying financial statements.

Summary of Significant Accounti

Summary of Significant Accounting Policies:
	12 Months Ended Dec. 31, 2009 USD / shares
Summary of Significant Accounting Policies:	2. Summary of Significant Accounting Policies: Use of Estimates The Company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. These principles require management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the amounts disclosed in the related notes to the consolidated financial statements. Actual results and outcomes may differ materially from managements estimates, judgments and assumptions. Significant estimates, judgments and assumptions used in these financial statements include, but are not limited to, those related to revenues, accounts receivable and related reserves, valuation and impairment of investments and marketable securities, loss contingencies, useful lives and realizability of long-lived assets and goodwill, capitalized internal-use software costs, income and other tax reserves, and accounting for stock-based compensation. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. The effects of material revisions in estimates are reflected in the consolidated financial statements prospectively from the date of the change in estimate. Revenue Recognition The Company recognizes service revenue in accordance with the authoritative guidance for revenue recognition, including guidance on revenue arrangements with multiple deliverables. Revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed and collectability of the resulting receivable is reasonably assured. Akamai primarily derives revenues from the sale of services to customers executing contracts having terms of one year or longer. These contracts generally commit the customer to a minimum monthly, quarterly or annual level of usage and specify the rate at which the customer must pay for actual usage above the monthly, quarterly or annual minimum. For these services, Akamai recognizes the monthly minimum as revenue each month, provided that an enforceable contract has been signed by both parties, the service has been delivered to the customer, the fee for the service is fixed or determinable and collection is reasonably assured. Should a customers usage of Akamai services exceed the monthly, quarterly or annual minimum, Akamai recognizes revenue for such excess in the period of the usage. For annual or other non-monthly period revenue commitments, the Company recognizes revenue monthly based upon the customers actual usage each month of the commitment period and only recognizes any remaining committed amount for the applicable period in the last month thereof. The Company typically charges its customers an integration fee when the services are first activated. Integration fees are recorded as deferred revenue and recognized as revenue ratably over the estimated life of the customer arrangement. The Company also derives revenue from services sold as discrete, non-recurring events or based solely on usage. For these services, the Company recognizes revenue once the

Business Acquisitions:

Business Acquisitions:
	12 Months Ended Dec. 31, 2009 USD / shares
Business Acquisitions:	3. Business Acquisitions: In March 2007,April 2007 and November 2008, the Company acquired Netli, Inc. (Netli), Red Swoosh, Inc. (Red Swoosh), and aCerno, Inc. (acerno), respectively. The consolidated financial statements include the operating results of each business from the date of acquisition. Pro forma results of operations for these acquisitions have not been presented because the effects of the acquisitions, individually and in the aggregate, were not material to the Companys consolidated financial results. aCerno On November3, 2008, the Company acquired all of the outstanding common and preferred stock of the parent entity of acerno, including vested stock options, in exchange for approximately $89.5 million in cash paid in 2008 and in the first quarter of 2009. The purchase of acerno was intended to augment Akamais Internet advertising-related offerings, which are designed to help customers more effectively target online advertising to the desired audience. The aggregate purchase price of $90.8 million consisted of $89.5 million in cash and $1.3 million of transaction costs, which primarily consisted of fees for legal and financial advisory services. The acquisition of acerno was accounted for using the purchase method of accounting. The results of operations of the acquired business have been included in the consolidated financial statements of the Company since November3, 2008, the date of acquisition. The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the date of acquisition, as determined by management and, with respect to identifiable intangible assets, by management with the assistance of an appraisal provided by a third-party valuation firm. The excess of the purchase price over the amounts allocated to assets acquired and liabilities assumed was recorded as goodwill. The value of the goodwill from this acquisition can be attributed to a number of business factors including, but not limited to, potential sales opportunities to provide Akamai services to acerno customers; a trained technical workforce in place in the United States; an existing sales pipeline and a trained sales force. In accordance with current accounting standards, goodwill associated with the acerno acquisition will not be amortized and will be tested for impairment at least annually (see Note 9). The following table presents the allocation of the purchase price for acerno: (Inthousands) Total consideration: Cash paid $ 89,520 Transaction costs 1,294 Total purchase consideration $ 90,814 Allocation of the purchase consideration: Current assets $ 5,249 Property and equipment 1,720 Identifiable intangible assets 19,400 Goodwill 80,901 Deferred tax liabilities (7,516 ) Other liabilities assumed (8,940 ) $ 90,814 The following were the identified intangible assets acquired and the respective estimated periods over which such assets will be amortized: Amount Weighted Average usefullife

Net Income per Share:

Net Income per Share:
	12 Months Ended Dec. 31, 2009 USD / shares
Net Income per Share:	4. Net Income per Share: Basic net income per weighted average share is computed using the weighted average number of common shares outstanding during the applicable period. Diluted net income per weighted average 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 stock options, deferred stock units, restricted stock units and convertible notes. The following table sets forth the components used in the computation of basic and diluted net income per common share (in thousands, except per share data): For the Years Ended December31, 2009 2008 2007 Numerator: Net income $ 145,913 $ 145,138 $ 100,967 Add back of interest expense on 1%convertible senior notes (net of tax) 1,746 1,757 2,840 Numerator for diluted net income per common share $ 147,659 $ 146,895 $ 103,807 Denominator: Denominator for basic net income per common share 171,425 167,673 162,959 Effect of dilutive securities: Stock options 2,805 4,009 7,354 Effect of escrow contingencies 342 351 1,051 Restricted stock units and deferred stock units 1,153 1,716 798 Assumed conversion of 1%convertible senior notes 12,933 12,936 12,932 Denominator for diluted net income per common share 188,658 186,685 185,094 Basic net income per common share $ 0.85 $ 0.87 $ 0.62 Diluted net income per common share $ 0.78 $ 0.79 $ 0.56 Outstanding options to acquire an aggregate of 3.1million, 2.6millionand 1.4million shares of common stock as of December31, 2009, 2008 and 2007, respectively, were excluded from the calculation of diluted earnings per share because the exercise prices of these stock options were greater than the average market price of the Companys common stock during the respective periods. Additionally, 3.6million, 1.9million and 3.5million shares of common stock issuable in respect of outstanding restricted stock units were excluded from the computation of diluted net income per share for the years ended December31, 2009, 2008 and 2007, respectively, because the performance conditions had not been met as of those dates. The calculation of assumed proceeds used to determine the diluted weighted average shares outstanding under the treasury stock method in the periods presented was adjusted by tax windfalls and shortfalls associated with all of the Companys outstanding stock awards. Such windfalls and shortfalls are computed by comparing the tax deductible amount of outstanding stock awards to their grant-date fair values and multiplying the results by the applicable statutory tax rate. A positive result creates a windfall, which increases the assumed proceeds, and a negative result creates a shortfall, which reduces the assumed proceeds.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss):
	12 Months Ended Dec. 31, 2009 USD / shares
Accumulated Other Comprehensive Income (Loss):	5. Accumulated Other Comprehensive Income (Loss): Comprehensive income consists of net income and other comprehensive income (loss), which includes foreign currency translation adjustments and changes in unrealized gains and losses on marketable securities. For the purposes of comprehensive income disclosures, the Company does not record tax provisions or benefits for the net changes in the foreign currency translation adjustment, as the Company intends to permanently reinvest all undistributed earnings of its foreign subsidiaries. Accumulated other comprehensive income (loss) is reported as a component of stockholders equity and consisted of the following (in thousands): December31, 2009 2008 Net unrealized (loss) gain on investments, net of tax of $7,345 at December31, 2009 and $14,767 at December31, 2008 $ (11,613 ) $ (23,348 ) Foreign currency translation adjustments 931 (1,002 ) Accumulated other comprehensive income (loss) $ (10,682 ) $ (24,350 )

Marketable Securities and Inves

Marketable Securities and Investments:
	12 Months Ended Dec. 31, 2009 USD / shares
Marketable Securities and Investments:	6. Marketable Securities and Investments: The Company accounts for financial assets and liabilities in accordance with a fair value measurement accounting standard. The accounting standard provides a framework for measuring fair value under generally accepted accounting principles in the United States and requires expanded disclosures regarding fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting standard also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs, other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques. The following is a summary of marketable securities and other investment-related assets held at December31, 2009 and 2008 (in thousands). Cost Gross Unrealized Other-than- temporary Impairment Gains (Losses) Aggregate FairValue ClassifiedonBalanceSheet Short-term Marketable Securities Long-term Marketable Securities As of December31, 2009 Gains Losses Available-for-sale securities: Certificates of deposit $ 417 $ $ $ $ 417 $ 381 $ 36 Commercial paper 60,976 6 (15 ) 60,967 60,967 U.S.corporate debt securities 334,464 2,319 (395 ) 336,388 179,978 156,410 U.S.government agency obligations 228,376 303 (391 ) 228,288 67,910 160,378 Auction rate securities 198,700 (20,781 ) 177,919 177,919 822,933 2,628 (21,582 ) 803,979 309,236 494,743 Trading securities: Auction rate securities 76,200 (9,614 ) 66,586 66,586 Other investment-related assets: Put option related to auction rate securities 9,614 9,614 9,614 $ 899,133 $ 2,628 $ (21,582 ) $ $ 880,179 $ 385,436 $ 494,743

Accounts Receivable:

Accounts Receivable:
	12 Months Ended Dec. 31, 2009 USD / shares
Accounts Receivable:	7. Accounts Receivable: Net accounts receivable consisted of the following (in thousands): December31, 2009 2008 Trade accounts receivable $ 117,449 $ 138,286 Unbilled accounts 47,399 12,596 Gross accounts receivable 164,848 150,882 Allowance for doubtful accounts (4,137 ) (6,943 ) Reserve for cash basis customers (6,442 ) (4,327 ) Total accounts receivable reserves (10,579 ) (11,270 ) Accounts receivable, net $ 154,269 $ 139,612

Property and Equipment:

Property and Equipment:
	12 Months Ended Dec. 31, 2009 USD / shares
Property and Equipment:	8. Property and Equipment: Property and equipment consisted of the following (dollars in thousands): December31, Estimated Useful LivesinYears 2009 2008 Computer and networking equipment $ 353,375 $ 302,213 3 Purchased software 28,713 26,987 3 Furniture and fixtures 9,491 8,286 5 Office equipment 4,479 3,834 3 Leasehold improvements 26,026 22,095 2-7 Internal-use software 139,585 106,075 2 561,669 469,490 Accumulated depreciation and amortization (379,265 ) (295,007 ) $ 182,404 $ 174,483 Depreciation and amortization expense on property and equipment and capitalized internal-use software for the years ended December31, 2009, 2008 and 2007 were $105.8million, $84.2million and $60.5million, respectively. During the years ended December31, 2009 and 2008, the Company wrote off $22.2million and $40.2million, respectively, of long-lived asset costs, with accumulated depreciation and amortization costs of $21.5million and $39.0million, respectively. These write-offs were primarily related to computer and networking equipment that were no longer in use. During the years ended December31, 2009, 2008 and 2007, the Company capitalized $27.2million, $25.0million and $19.1 million, net of impairments, respectively, of external consulting fees and payroll and payroll-related costs for the development and enhancement of internal-use software applications. Additionally, during the years ended December31, 2009, 2008 and 2007, the Company capitalized $6.3million, $7.4million and $6.4 million, respectively, of non-cash stock-based compensation related to employees who developed and enhanced internal-use software applications. The internal-use software is used by the Company primarily to operate, manage and monitor its deployed network and deliver its services to customers. The following table summarizes capitalized internal-use software costs (in thousands): December31, 2009 2008 Gross costs capitalized $ 140,741 $ 107,125 Less: cumulative impairments (1,156 ) (1,050 ) 139,585 106,075 Less: accumulated amortization (84,653 ) (56,778 ) Net book value of capitalized internal-use software $ 54,932 $ 49,297

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets:
	12 Months Ended Dec. 31, 2009 USD / shares
Goodwill and Other Intangible Assets:	9. Goodwill and Other Intangible Assets: The Company recorded goodwill and other intangible assets as a result of business acquisitions that occurred from 2000 through 2008. The Company also acquired license rights from the Massachusetts Institute of Technology in 1999. The changes in the carrying amount of goodwill for the years ended December31, 2009 and 2008 were as follows: Inthousands Ending balance, December31, 2007 $ 361,637 acerno acquisition 80,285 Purchase price adjustment in connection with the Speedera acquisition (664 ) Ending balance, December31, 2008 441,258 Purchase price adjustment in connection with the acerno acquisition 617 Tax asset adjustment in connection with the acerno acquisition (528 ) Ending balance, December31, 2009 $ 441,347 During 2009, the Company made purchase accounting adjustments affecting $0.1 million to reflect the final determination of the fair value of assumed liabilities and assets in connection with the acquisition of acerno. During 2008, the Company made purchase accounting adjustments of $0.7 million to reflect the return in 2008 of approximately 59,000 shares of Akamai common stock previously held in escrow in connection with its acquisition of Speedera. The shares were previously included in the purchase price. Consequently, the Company reduced stockholders equity by $0.7 million for the value of the shares as of the date of acquisition and reduced goodwill by the same amount. The Company reviews goodwill and other intangible assets for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of these assets may exceed their fair value. The Company concluded that it had one reporting unit and assigned the entire balance of goodwill to that reporting unit as of December31, 2009 and 2008 for purposes of performing an impairment test. The fair value of the reporting unit was determined using the Companys market capitalization as of December31, 2009 and 2008. The fair value on December31, 2009 and 2008 exceeded the net assets of the reporting unit, including goodwill, as of both dates. Accordingly, the Company concluded that no impairment existed as of these dates. Unless changes in events or circumstances indicate that an impairment test is required, the Company will next test goodwill for impairment as of December31, 2010. Other intangible assets that are subject to amortization consist of the following (in thousands): December31, 2009 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Completed technologies $ 35,031 $ (10,832 ) $ 24,199 Customer relationships 88,700 (41,312 ) 47,388 Non-compete agreements 7,200 (2,809 ) 4,391 Trademarks and trade names 800 (505 ) 295 Acquired license rights 490 (490 ) Total $ 132,221 $ (55,948 ) $ 76,273 December31, 2008 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Compl

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities:
	12 Months Ended Dec. 31, 2009 USD / shares
Accrued Expenses and Other Current Liabilities:	10. Accrued Expenses and Other Current Liabilities: Accrued expenses and other current liabilities consisted of the following (in thousands): December31, 2009 2008 Payroll and other related benefits $ 38,841 $ 26,377 Bandwidth and co-location 18,591 16,642 Property, use and other taxes 6,815 13,317 Legal professional fees 931 1,475 Other 3,388 8,321 Total $ 68,566 $ 66,132

Commitments, Contingencies and

Commitments, Contingencies and Guarantees:
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments, Contingencies and Guarantees:	11. Commitments, Contingencies and Guarantees: Operating Lease Commitments The Company leases its facilities under non-cancelable operating leases. These operating leases expire at various dates through December 2019 and generally require the payment of real estate taxes, insurance, maintenance and operating costs. The minimum aggregate future obligations under non-cancelable leases as of December31, 2009 were as follows (in thousands): Operating Leases 2010 $ 21,651 2011 20,800 2012 19,642 2013 18,989 2014 18,211 Thereafter 73,279 Total $ 172,572 Rent expense for the years ended December31, 2009, 2008 and 2007 was $19.8million, $14.8million and $11.0 million, respectively. As of December31, 2009, the Company had outstanding letters of credit in the amount of $5.6million related to certain of its real estate leases. Approximately $0.6 million of these letters of credit are collateralized by marketable securities that have been restricted as to use (see Note6). The letters of credit expire as the Company fulfills its operating lease obligations. Certain of the Companys facility leases include rent escalation clauses. The Company normalizes rent expense on a straight-line basis over the term of the lease for known changes in lease payments over the life of the lease. In the event that the landlord provided funding for leasehold improvements to leased facilities, the Company amortizes such amounts as part of rent expense on a straight-line basis over the life of the lease. Purchase Commitments The Company has long-term commitments for bandwidth usage and co-location with various networks and ISPs. For the years ending December31, 2010 and 2011, the minimum commitments were, as of December31, 2009, approximately $41.6million and $4.0million, respectively. Additionally, as of December31, 2009, the Company had entered into purchase orders with various vendors for aggregate purchase commitments of $37.5 million, which are expected to be paid in 2010. Litigation Between July2, 2001 and November7, 2001, purported class action lawsuits seeking monetary damages were filed in the U.S. District Court for the Southern District of New York against the Company as well as against the underwriters of its October28, 1999 initial public offering of common stock. The complaints were filed allegedly on behalf of persons who purchased the Companys common stock during different time periods, all beginning on October28, 1999 and ending on various dates. The complaints are similar and allege violations of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, primarily based on the allegation that the underwriters received undisclosed compensation in connection with the Companys initial public offering. On April19, 2002, a single consolidated amended complaint was filed, reiterating in one pleading the allegations contained in the previously filed separate actions. The consolidated amended complaint defines the alleged class period as October28, 1999 through December6, 2000. A Special Litigation Committee of the Com

1% Convertible Senior Notes:

1% Convertible Senior Notes:
	12 Months Ended Dec. 31, 2009 USD / shares
1% Convertible Senior Notes:	12. 1% Convertible Senior Notes: In January 2004 and December 2003, Akamai issued $200.0million in aggregate principal amount of 1%convertible senior notes due December15, 2033 for aggregate proceeds of $194.1million, net of an initial purchasers discount and offering expenses of $5.9million. The initial conversion price of the 1%convertible senior notes was $15.45per share (equivalent to 64.7249shares of common stock per $1,000 principal amount of 1%convertible senior notes). During 2009 and 2007, the Company issued 6,472 shares and 9,379 shares, respectively, of common stock in connection with the conversion of $100,000 and $145,000, respectively, in aggregate principal amount of its 1% convertible senior notes. As of December31, 2009, the carrying amount and fair value of the 1% convertible senior notes were $199.8 million and $337.6 million, respectively. The notes may be converted at the option of the holder in any of the following circumstances: during any calendar quarter commencing after March31, 2004, if the closing sale price of the common stock for at least 20 trading days in the period of 30 consecutive trading days ending on the last trading day of the preceding calendar quarter is more than 120% of the conversion price in effect on such last trading day; if the convertible notes are called for redemption; if the Company makes specified distributions on its common stock or engages in specified transactions;and during the five trading day period immediately following any ten-consecutive trading day period in which the trading price per $1,000 principal amount of the convertible notes for each day of such ten-day period is less than 95% of the product of the closing sale price per share of the Companys common stock on that day multiplied by the number of shares of its common stock issuable upon conversion of $1,000 principal amount of the convertible notes. The Company may redeem the 1%convertible senior notes on or after December15, 2010 at the Companys option at 100% of the principal amount together with accrued and unpaid interest. Conversely, holders of the 1% convertible senior notes may require the Company to repurchase the notes at par value on certain specified dates beginning on December15, 2010. As of December31, 2009, the 1% convertible senior notes were classified as a short-term liability to reflect the ability of the bondholders to redeem these notes in less than 12 months. In the event of a change of control, the holders may require Akamai to repurchase their 1% convertible senior notes at a repurchase price of 100% of the principal amount plus accrued interest. Interest on the 1%convertible senior notes began to accrue as of the issue date and is payable semiannually on June15 and December15 of each year. Deferred financing costs of $5.9million, including the initial purchasers discount and other offering expenses, for the 1%convertible senior notes are being amortized over the first seven years of the term of the notes to reflect the put and call rights discussed above. Amortization of deferred financing costs of the 1%convertible senior notes was appr

Restructurings and Lease Termin

Restructurings and Lease Terminations:
	12 Months Ended Dec. 31, 2009 USD / shares
Restructurings and Lease Terminations:	13. Restructurings and Lease Terminations: As of December31, 2009 and 2008, the Company had $0.8 million and $1.7 million, respectively, of accrued restructuring liabilities. In November 2008, the Company announced a workforce reduction of approximately 110 employees from all areas of the Company. The Company recorded $2.0 million as a restructuring charge for the amount of one-time benefits provided to affected employees. Included in these costs was a net reduction in non-cash stock-based compensation of $0.8million, reflecting a modification to certain stock-based awards previously granted to the affected employees. Additionally, in December 2008, in connection with excess and vacated facilities under long-term non-cancelable leases, the Company recorded $0.5 million as a restructuring charge for the estimated future lease payments, less estimated sublease income, for these vacated facilities. The Company expects these remaining amounts to be paid in 2010. As of December31, 2007, the Company had $0.6million of accrued restructuring liabilities. In connection with the Speedera, Nine Systems Corporation, Netli and Red Swoosh acquisitions, the Companys management committed to plans to exit certain activities of these entities. In accordance with the authoritative guidance for the recognition of liabilities in connection with a purchase business combination, the Company recorded, as part of the purchase prices, liabilities of $1.4 million related to workforce reductions during the year ended December31, 2007. These liabilities primarily consisted of employee severance and outplacement costs and, as of December31, 2008, had been fully paid. The following table summarizes the accrual and usage of the restructuring charges (in millions): Leases Severance Total Ending balance, December31, 2006 $ 0.9 $ 1.2 $ 2.1 Accrual recorded in purchase accounting 1.4 1.4 Restructuring benefit (0.2 ) (0.2 ) Cash payments (0.7 ) (2.0 ) (2.7 ) Ending balance, December31, 2007 0.6 0.6 Restructuring charge 0.5 2.0 2.5 Cash payments (0.2 ) (1.2 ) (1.4 ) Ending balance, December31, 2008 0.3 1.4 1.7 Restructuring charge 0.5 0.5 Cash payments (0.2 ) (1.2 ) (1.4 ) Ending balance, December31, 2009 $ 0.1 $ 0.7 $ 0.8

Rights Plan and Series A Junior

Rights Plan and Series A Junior Participating Preferred Stock:
	12 Months Ended Dec. 31, 2009 USD / shares
Rights Plan and Series A Junior Participating Preferred Stock:	14. Rights Plan and SeriesA Junior Participating Preferred Stock: On September10, 2002, the Board of Directors of the Company (the Board of Directors) declared a dividend of one preferred stock purchase right for each outstanding share of the Companys common stock held by stockholders of record at the close of business on September23, 2002. To implement the rights plan, the Board of Directors designated 700,000shares of the Companys 5.0million authorized shares of undesignated preferred stock as SeriesA Junior Participating Preferred Stock, par value $.01per share. Each right entitles the registered holder to purchase from the Company one one-thousandth of a share of preferred stock at a purchase price of $9.00 in cash, subject to adjustment. No shares of SeriesA Junior Participating Preferred Stock are outstanding as of December31, 2009. In January 2004, the Board of Directors of the Company approved an amendment to the rights plan in which the purchase price of each right issued under the plan increased from $9.00per share to $65.00pershare.

Stockholders' Equity:

Stockholders' Equity:
	1/1/2009 - 12/31/2009 USD / shares
Stockholders' Equity:	15. Stockholders Equity: Holders of the Companys common stock are entitled to one vote per share. At December31, 2009, the Company had reserved approximately 6.3million shares of common stock for issuance of equity awards under its 2009 Stock Incentive Plan. See Note 16 for discussion of shares available for issuance under the Companys 1999 Employee Stock Purchase Plan (the 1999 ESPP). Additionally, the Company had reserved approximately 12.9million shares issuable upon conversion of its 1% senior convertible notes. Stock Repurchase Program On April29, 2009, the Company announced that its Board of Directors had authorized a stock repurchase program permitting purchases of up to $100.0 million of the Companys common stock from time to time on the open market or in privately negotiated transactions. The timing and amount of any shares repurchased will be determined by the Companys management based on its evaluation of market conditions and other factors. The Company may choose to suspend or discontinue the repurchase program at any time. During the year ended December31, 2009, the Company repurchased approximately 3.3million shares of its common stock for $66.3 million. Additionally, as of December31, 2009, the Company had prepaid approximately $0.2 million for purchases of its common stock having a settlement date in early January 2010. As of December31, 2009, the Company had $33.5 million remaining available for future purchases of shares under the approved repurchase program.

Stock-Based Compensation:

Stock-Based Compensation:
	12 Months Ended Dec. 31, 2009 USD / shares
Stock-Based Compensation:	16. Stock-Based Compensation: Equity Plans In 1998, the Board of Directors adopted the Akamai Technologies, Inc. 1998 Stock Incentive Plan (the 1998 Plan) for the issuance of incentive and nonqualified stock options, restricted stock awards and other types of equity awards. Options to purchase common stock and other equity awards could be granted at the discretion of the Board of Directors or a committee thereof. In December 2001, the Board of Directors adopted the Akamai Technologies, Inc. 2001 Stock Incentive Plan (the 2001 Plan) for the issuance of nonqualified stock options, restricted stock awards and other types of equity awards. In March 2006, the Board of Directors adopted the Akamai Technologies, Inc. 2006 Stock Incentive Plan (the 2006 Plan) for the issuance of incentive and nonqualified stock options, restricted stock awards, restricted stock units and other types of equity awards. In March 2009, the Board of Directors adopted the Akamai Technologies, Inc. 2009 Stock Incentive Plan (the 2009 Plan) for the issuance of incentive and nonqualified stock options, restricted stock awards, restricted stock units and other types of equity awards. The total numbers of shares of common stock approved for issuance under the 1998 Plan, the 2001 Plan, the 2006 Plan and the 2009 Plan are approximately 48.3million, 5.0million, 7.5 millionand 8.5million shares, respectively. Equity incentive awards may not be issued to the Companys directors or executive officers under the 2001 Plan. In October 2005, the Board of Directors delegated to the Companys Chief Executive Officer the authority to grant equity incentive awards to employees of the Company below the level of Vice President, subject to certain specified limitations, under all then-existing and future plans. Under the terms of the 1998 Plan, the 2006 Plan and the 2009 Plan, the exercise price of incentive stock options may not be less than 100% (110% in certain cases) of the fair market value of the common stock on the date of grant. Incentive stock options may not be issued under the 2001 Plan. The exercise price of nonqualified stock options issued under the 1998 Plan, the 2001 Plan, the 2006 Plan and the 2009 Plan may be less than the fair market value of the common stock on the effective date of grant, as determined by the Board of Directors, but in no case may the exercise price be less than the statutory minimum. Stock option vesting typically occurs over four years under all of the plans, and options are granted at the discretion of the Board of Directors. Under the 1998 Plan and 2001 Plan, the term of options granted may not exceed ten years, or five years for incentive stock options granted to holders of more than 10% of the Companys voting stock. Under the 2006 Plan and the 2009 Plan, the term of options granted may not exceed seven years. The Company has assumed certain stock option plans and the outstanding stock options of companies that it has acquired (Assumed Plans). Stock options outstanding as of the date of acquisition under the Assumed Plans were exchanged for the Companys stock options and adjusted to reflect the appropriate conversion ratio as specified

Employee Benefit Plan:

Employee Benefit Plan:
	12 Months Ended Dec. 31, 2009 USD / shares
Employee Benefit Plan:	17. Employee Benefit Plan: The Company has established a savings plan for its employees that is designed to be qualified under Section401(k) of the Internal Revenue Code. Eligible employees are permitted to contribute to this plan through payroll deductions within statutory and plan limits. Participants may select from a variety of investment options. Investment options do not include Akamai common stock. For 2007, the Company made matching contributions of 1/2 of the first 2% of employee contributions and then matched 1/4 of the next 4% of employee contributions. The maximum amount of the Company match was $1,000 per employee per year for 2007. Effective January1, 2008, the Company amended its matching contribution to 1/2 of the first 8% of employee contributions in each year, with the maximum amount of the Company match at $2,000 per employee per year for the years 2008 and 2009. The Companys contributions vest 25%per annum. The Company contributed approximately $1.9 million, $1.9 million and $0.9 million of cash to the savings plan for the years ended December31, 2009, 2008 and 2007, respectively.

Income Taxes:

Income Taxes:
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes:	18. Income Taxes: The components of income before provision for income taxes were as follows (in thousands): For the Years Ended December31, 2009 2008 2007 Domestic $ 221,071 $ 225,079 $ 156,219 Foreign 16,161 9,456 11,986 Income before provision for income taxes $ 237,232 $ 234,535 $ 168,205 The provision for income taxes consisted of the following (in thousands): FortheYearsEndedDecember31, 2009 2008 2007 Current tax provision Federal $ 1,393 $ 2,099 $ State 4,229 2,974 292 Foreign 3,991 2,626 1,685 Deferred tax provision (benefit) Federal 76,410 79,045 51,567 State 2,068 1,776 6,764 Foreign 3,238 825 1,640 Change in valuation allowance (10 ) 52 5,290 $ 91,319 $ 89,397 $ 67,238 The Companys effective rate differed from the statutory rate as follows: FortheYearsEndedDecember31, 2009 2008 2007 United States federal income tax rate 35.0 % 35.0 % 35.0 % State taxes 3.7 3.8 4.4 Nondeductible stock-based compensation 1.2 1.6 2.7 United States federal and state research and development credits (1.4 ) (1.3 ) (4.6 ) Change in state tax rates 0.6 Foreign earnings 0.1 0.1 Other (0.1 ) (1.6 ) (0.7 ) Change in the deferred tax asset valuation allowance 3.1 38.5 % 38.1 % 40.0 % The components of the net deferred tax asset and the related valuation allowance were as follows (in thousands): December31, 2009 2008 Net operating loss and credit carryforwards $ 72,146 $ 150,041 Depreciation and amortization 63,709 68,502 Compensation costs 24,251 40,227 Impairment loss on marketable securities 7,345 14,767 Other 24,485 15,539 Deferred tax assets 191,936 289,076 Acquired intangible assets not deductible (29,792 ) (36,271 ) Internal-use software capitalized (19,632 ) (17,449 ) Deferred tax liabilities (49,424 ) (53,720 ) Valuation allowance (7,086 ) (7,096 ) Net deferred tax assets $ 135,426 $ 228,260 As of December31, 2009 and 2008, the Company had United States federal NOL carryforwards of approximately $90.8 million and $319.1 million, respectively, and state NOL carryforwards of approximately $161.6million and $186.4 million, respectively, which expire at various dates through 2026. The Company also had foreign NOL carryforwards of approximately $1.9million and $3.4 million as of December31, 2009 and 2008, respectively. The majority of the foreign NOL carryforwards have no expiration dates. As of December31, 2009 an

Segment and Geographic Informat

Segment and Geographic Information:
	12 Months Ended Dec. 31, 2009 USD / shares
Segment and Geographic Information:	19. Segment and Geographic Information: Akamais chief decision-maker, as defined under the authoritative guidance for disclosures about segments of an enterprise and related information, is the Chief Executive Officer and the executive management team. As of December31, 2009, Akamai operated in one industry segment: providing global services for accelerating and improving the delivery of content and applications over the Internet. The Company is not organized by market, and is managed and operated as one business. A single management team that reports to the Chief Executive Officer comprehensively manages the entire business. The Company does not operate any material separate lines of business or separate business entities with respect to its services. The Company deploys its servers into networks worldwide. As of December31, 2009, the Company had approximately $139.8million and $42.6million of property and equipment, net of accumulated depreciation, located in the United States and foreign locations, respectively. As of December31, 2008, the Company had approximately $138.6million and $35.9million of property and equipment, net of accumulated depreciation, located in the United States and foreign locations, respectively. Akamai sells its services and licenses through a sales force located both domestically and abroad. For the years ended December31, 2009, 2008 and 2007, approximately 28%, 25% and 23%, respectively, of revenues was derived from the Companys operations outside the United States, of which 18%, 18%, and 17% of overall revenues, respectively, were related to Europe. Other than the United States, no single country accounted for 10% or more of the Companys total revenues for any reported period.

Quarterly Financial Results

Quarterly Financial Results (unaudited):
	12 Months Ended Dec. 31, 2009 USD / shares
Quarterly Financial Results (unaudited):	20. Quarterly Financial Results (unaudited): The following table sets forth certain unaudited quarterly results of operations of the Company for the years ended December31, 2009 and 2008. In the opinion of management, this information has been prepared on the same basis as the audited consolidated financial statements and all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts below for a fair statement of the quarterly information when read in conjunction with the audited consolidated financial statements and related notes. For the Three Months Ended March31, 2009 June30, 2009 Sept.30, 2009 Dec.31, 2009 (In thousands, except per share data) Revenues $ 210,368 $ 204,600 $ 206,500 $ 238,305 Cost of revenues $ 60,362 $ 60,009 $ 61,987 $ 67,580 Net income $ 37,081 $ 36,007 $ 32,745 $ 40,080 Basic net income per share $ 0.22 $ 0.21 $ 0.19 $ 0.23 Diluted net income per share $ 0.20 $ 0.19 $ 0.18 $ 0.21 Basic weighted average common shares 170,519 172,561 171,686 170,936 Diluted weighted average common shares 188,183 189,556 188,273 188,621 For the Three Months Ended March31, 2008 June30, 2008 Sept.30, 2008 Dec.31, 2008 (In thousands, except per share data) Revenues $ 187,019 $ 194,004 $ 197,347 $ 212,554 Cost of revenues $ 51,575 $ 53,688 $ 56,659 $ 60,688 Net income $ 36,911 $ 34,334 $ 33,360 $ 40,533 Basic net income per share $ 0.22 $ 0.21 $ 0.20 $ 0.24 Diluted net income per share $ 0.20 $ 0.19 $ 0.18 $ 0.22 Basic weighted average common shares 165,959 167,417 168,474 168,843 Diluted weighted average common shares 185,744 187,641 187,769 186,694

SCHEDULE II - VALUATION AND QUA

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	AKAMAI TECHNOLOGIES, INC. SCHEDULEII VALUATION AND QUALIFYING ACCOUNTS Description Balance at beginningof period Chargedto operations Other Deductions Balanceat endof period Year ended December31, 2007: Allowances deducted from asset accounts: Reserves for accounts receivable $ 5,468 6,434 2 337 (1,848 )3 $ 10,391 Deferred tax asset valuation allowance $ 6,338 5,290 75 1 (545 ) $ 11,158 Year ended December31, 2008: Allowances deducted from asset accounts: Reserves for accounts receivable $ 10,391 7,303 2 (308 ) (6,116 )3 $ 11,270 Deferred tax asset valuation allowance $ 11,158 52 (1,109 )1 (3,005 ) $ 7,096 Year ended December31, 2009: Allowances deducted from asset accounts: Reserves for accounts receivable $ 11,270 21,566 2 (716 ) (21,541 )3 $ 10,579 Deferred tax asset valuation allowance $ 7,096 (10 ) $ 7,086 1 Amounts related to items with no income statement effect such as the impact of stock options, acquired intangible assets and acquired net operating losses. 2 Amounts represent charges to bad debt expense and reductions to revenue for increases to the allowance for doubtful accounts and to the reserve for cash-basis customers. 3 Amounts represent cash collections from customers for accounts previously reserved and write-offs of accounts receivable recorded against the allowance for doubtful accounts or the reserve for cash-basis customers.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 24, 2010	Jun. 30, 2009
Trading Symbol	AKAM
Entity Registrant Name	AKAMAI TECHNOLOGIES INC
Entity Central Index Key	0001086222
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		172,085,306
Entity Public Float			$3,195,300,000