Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2019 |
Entity File Number | 001-37361 |
Entity Registrant Name | SINA CORPORATION |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | No. 8 SINA Plaza |
Entity Address, Address Line Two | Courtyard 10, the West Xibeiwang E. Road |
Entity Address, Address Line Three | Haidian District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100193 |
Entity Address, Country | CN |
Title of 12(b) Security | Ordinary Shares, $0.133 par value |
Entity Listing, Par Value Per Share | $ / shares | $ 0.133 |
Trading Symbol | SINA |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | shares | 68,450,187 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001094005 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Bonnie Yi Zhang |
Country Region | +86 |
City Area Code | 10 |
Local Phone Number | 8262 8888 |
Contact Personnel Fax Number | +86 10 8260 7166 |
Entity Address, Address Line One | 7/F SINA Plaza |
Entity Address, Address Line Two | No. 8 Courtyard 10 West Xibeiwang E. Road |
Entity Address, Address Line Three | Haidian District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100193 |
Entity Address, Country | CN |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,951,886 | $ 1,545,800 |
Short-term investments | 951,953 | 799,534 |
Restricted cash | 184,143 | 97,032 |
Accounts receivable, net of allowances for doubtful accounts of $27,964 and $60,420, respectively (including due from related parties of $189,522 and $174,080 as of December 31, 2018 and 2019, respectively, Note 13) | 601,876 | 527,897 |
Financing receivables, net (Note 4) | 226,098 | |
Prepaid expenses and other current assets (including prepayment to and loans to and interest receivables from related parties of $115,976 and $320,221 as of December 31, 2018 and 2019, respectively, Note 12 and 13) | 695,888 | 362,435 |
Total current assets | 4,611,844 | 3,332,698 |
Property and equipment, net (Note 12) | 253,179 | 262,846 |
Operating lease right-of-use assets, net (Note 7) | 24,872 | |
Long-term investments, net (Note 5) | 2,200,548 | 1,889,843 |
Intangible assets, net (Note 8) | 214,207 | 225,335 |
Goodwill (Note 8) | 93,093 | 94,240 |
Other assets (Note 12) | 71,085 | 81,127 |
Total assets | 7,468,828 | 5,886,089 |
Current liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of $627,037 and $1,150,273 as of December 31, 2018 and 2019, respectively. Note 2): | ||
Accounts payable (including due to related parties of $50,678 and $46,655 as of December 31, 2018 and 2019, respectively, Note 13) | 170,647 | 172,562 |
Amount due to customers | 121,558 | 97,032 |
Accrued expenses and other current liabilities (including due to related parties of $14,763 and $39,836 as of December 31, 2018 and 2019, respectively, Note 12 and 13) | 886,713 | 540,807 |
Short-term bank loans | 81,649 | 78,229 |
Short-term operating lease liabilities (Note 7) | 12,151 | |
Short-term funding debts (Note 9) | 173,821 | |
Income taxes payable | 129,591 | 115,725 |
Deferred revenues (including deferred revenue from related parties of $12,883 and $13,813 as of December 31, 2018 and 2019, respectively, Note 13) | 143,073 | 139,306 |
Total current liabilities | 1,719,203 | 1,143,661 |
Long-term liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of $51,002 and $124,992 as of December 31, 2018 and 2019, respectively, Note 2): | ||
Convertible debt (Note 21) | 888,266 | 884,123 |
Senior notes (Note 21) | 793,985 | |
Deferred revenues from related parties (Note 13) | 33,217 | 43,652 |
Long-term funding debts (Note 9) | 22,260 | |
Long-term operating lease liabilities (Note 7) | 13,081 | |
Other long-term liabilities | 100,903 | 51,781 |
Total long-term liabilities | 1,851,712 | 979,556 |
Total liabilities | 3,570,915 | 2,123,217 |
Commitments and contingencies (Note 22) | ||
SINA shareholders' equity: | ||
Preferred shares: $1.00 par value; 3,750,000 and 3,750,000 shares authorized; 7,150 shares issued and outstanding as of December 31, 2018 and 2019 (Note 18) | 7 | 7 |
Ordinary shares: $0.133 par value; 150,000,000 and 150,000,000 shares authorized; 82,410,842 shares issued and 69,368,140 shares outstanding as of December 31, 2018; 83,317,637 shares issued and 68,450,187 shares outstanding as of December 31, 2019. | 11,082 | 10,961 |
Treasury stock (13,042,702 and 14,867,450 shares as of December 31, 2018 and 2019, respectively, Note 21) | (795,396) | (733,705) |
Additional paid-in capital | 3,338,491 | 3,261,795 |
Accumulated other comprehensive loss | (57,117) | (33,223) |
Retained earnings | 141,414 | 211,956 |
Total SINA shareholders' equity | 2,638,481 | 2,717,791 |
Non-controlling interests (Note 11) | 1,259,432 | 1,045,081 |
Total shareholders' equity | 3,897,913 | 3,762,872 |
Total liabilities and shareholders' equity | $ 7,468,828 | $ 5,886,089 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 60,420 | $ 27,964 |
Accounts receivable, net of allowances for doubtful accounts, due from related parties | 174,080 | 189,522 |
Prepayment and receivables from related parties | 320,221 | 115,976 |
Amounts of the consolidated VIEs without recourse to the primary beneficiaries | ||
Amounts of the consolidated VIEs without recourse to the primary beneficiaries, current liabilities | 1,150,273 | 627,037 |
Amounts of the consolidated VIEs without recourse to the primary beneficiaries, non-current liabilities | 124,992 | 51,002 |
Current liabilities | ||
Accounts payable, due to related parties | 46,655 | 50,678 |
Accrued expenses and other current liabilities, due to related parties | 39,836 | 14,763 |
Deferred revenue from related parties | $ 13,813 | $ 12,883 |
Preferred shares | ||
Preferred shares, par value (in dollars per share) | $ 1 | $ 1 |
Preferred shares, shares authorized (in shares) | 3,750,000 | 3,750,000 |
Preferred shares, shares issued (in shares) | 7,150 | 7,150 |
Preferred shares, shares outstanding (in shares) | 7,150 | 7,150 |
Ordinary shares | ||
Ordinary shares, par value (in dollars per share) | $ 0.133 | $ 0.133 |
Ordinary shares, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Ordinary shares, shares issued (in shares) | 83,317,637 | 82,410,842 |
Ordinary shares, shares outstanding (in shares) | 68,450,187 | 69,368,140 |
Treasury stock | ||
Treasury stock (in shares) | 14,867,450 | 13,042,702 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net revenues: | |||
Net revenues | $ 2,162,955 | $ 2,108,327 | $ 1,583,884 |
Costs of revenues | |||
Costs of revenues | 493,428 | 452,040 | 414,137 |
Gross profit | 1,669,527 | 1,656,287 | 1,169,747 |
Operating expenses: | |||
Sales and marketing | 627,989 | 699,962 | 408,856 |
Product development | 372,818 | 345,942 | 267,392 |
General and administrative | 298,441 | 120,184 | 104,923 |
Goodwill and acquired intangibles impairment (Note 8) | 23,245 | ||
Total operating expenses | 1,299,248 | 1,189,333 | 781,171 |
Income from operations | 370,279 | 466,954 | 388,576 |
Interest and other income, net | 64,053 | 69,355 | 42,696 |
Income (loss) from equity method investments, net | 24 | 1,120 | (16,070) |
Realized gain (loss) on investments | (2,410) | 2,729 | 132,007 |
Fair value changes through earnings on investments, net (Note 5 and Note 12) | 165,295 | 96,533 | |
Investment related impairment | (342,049) | (81,281) | (122,970) |
Income (loss) before income tax expense | 255,192 | 555,410 | 424,239 |
Income tax expense (Note 14) | (146,465) | (129,084) | (74,676) |
Net income (loss) | 108,727 | 426,326 | 349,563 |
Less: Net income attributable to the non-controlling interests | 179,269 | 300,764 | 192,994 |
Net income (loss) attributable to SINA's ordinary shareholders | (70,542) | 125,562 | 156,569 |
Net income | 108,727 | 426,326 | 349,563 |
Available-for-sale investments: | |||
Change in unrealized gain (net of tax of nil, nil, and nil for 2017, 2018 and 2019 respectively) | 55,575 | ||
Less: reclassification adjustment for net gain included in net income (net of tax of nil, nil, and nil for 2017, 2018 and 2019, respectively) | 91,182 | ||
Net change in unrealized loss, net of tax | (35,607) | ||
Currency translation adjustments | (34,635) | (119,647) | 87,258 |
Total other comprehensive income (loss) | (34,635) | (119,647) | 51,651 |
Total comprehensive income | 74,092 | 306,679 | 401,214 |
Less: Comprehensive income attributable to non-controlling interests | 168,528 | 266,326 | 214,354 |
Comprehensive income (loss) attributable to SINA's ordinary shareholders | $ (94,436) | $ 40,353 | $ 186,860 |
Basic net income (loss) per share | $ (1.01) | $ 1.79 | $ 2.20 |
Shares used in computing basic net income (loss) per share | 69,640 | 70,296 | 71,284 |
Diluted net income (loss) per share | $ (1.03) | $ 1.70 | $ 2.09 |
Shares used in computing diluted net income (loss) per share | 69,640 | 72,375 | 73,931 |
Advertising | |||
Net revenues: | |||
Net revenues | $ 1,743,617 | $ 1,789,285 | $ 1,311,866 |
Costs of revenues | |||
Costs of revenues | 338,386 | 341,153 | 325,494 |
Advertising | Third parties | |||
Net revenues: | |||
Net revenues | 1,506,892 | 1,505,690 | 1,131,500 |
Advertising | Related Parties | |||
Net revenues: | |||
Net revenues | 236,725 | 283,595 | 180,366 |
Non-advertising | |||
Net revenues: | |||
Net revenues | 419,338 | 319,042 | 272,018 |
Costs of revenues | |||
Costs of revenues | $ 155,042 | $ 110,887 | $ 88,643 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-advertising, amortization of deferred revenues related to the license to Leju | $ 113,400,000 | $ 106,700,000 | |
Change in unrealized gain, tax | 0 | 0 | $ 0 |
Reclassification adjustment for net gain included in net income, tax | 0 | 0 | 0 |
Leju | |||
Non-advertising, amortization of deferred revenues related to the license to Leju | $ 10,435,000 | $ 10,435,000 | $ 10,435,000 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Ordinary Shares | Preferred Shares | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings | Non-controlling Interests | Total |
Balances at Dec. 31, 2016 | $ 10,713 | $ (436,818) | $ 2,610,173 | $ 60,405 | $ 435,117 | $ 411,389 | $ 3,090,979 | |
Balances (in shares) at Dec. 31, 2016 | 80,544 | (9,607) | ||||||
Increase (Decrease) in Shareholders' Equity | ||||||||
Issuance of ordinary shares pursuant to stock plans | $ 125 | 808 | 933 | |||||
Issuance of ordinary shares pursuant to stock plans (in shares) | 946 | |||||||
Issuance of preferred shares to New Wave (Note 18) | $ 7 | 7 | ||||||
Issuance of preferred shares to New Wave (Note 18) (in shares) | 7 | |||||||
Non-cash stock-based compensation expenses | 43,011 | 48,376 | 91,387 | |||||
Repurchase of ordinary shares (Note 21) | $ (47,624) | (47,624) | ||||||
Repurchase of ordinary shares (Note 21) (in shares) | (473) | |||||||
In-kind distribution of Weibo's shares (Note 18) | 522,271 | (554,016) | 31,745 | |||||
Non-controlling interests arising from business acquisitions (Note 6) | 43,112 | 43,112 | ||||||
Sale (Purchase) of subsidiaries' shares to/from non-controlling interests | (1,868) | 19,382 | 17,514 | |||||
Settlement of stock-based awards in a subsidiary | 17,678 | (15,471) | 2,207 | |||||
Net income | 156,569 | 192,994 | 349,563 | |||||
Unrealized loss on available-for-sale securities (Note 5) | (35,075) | (532) | (35,607) | |||||
Currency translation adjustments | 65,366 | 21,892 | 87,258 | |||||
Balances at Dec. 31, 2017 | $ 10,838 | $ 7 | $ (484,442) | 3,192,073 | 90,696 | 37,670 | 752,887 | 3,599,729 |
Balances (in shares) at Dec. 31, 2017 | 81,490 | 7 | (10,080) | |||||
Increase (Decrease) in Shareholders' Equity | ||||||||
Issuance of ordinary shares pursuant to stock plans | $ 123 | 1,401 | 1,524 | |||||
Issuance of ordinary shares pursuant to stock plans (in shares) | 921 | |||||||
Issuance of ordinary shares pursuant to convertible debt conversion (Note 21) | 7 | 7 | ||||||
Non-cash stock-based compensation expenses | 51,548 | 43,521 | 95,069 | |||||
Impact of adoption of new revenue guidance | (253) | (324) | (577) | |||||
Impact of adoption of new guidance for investments in equity securities (Note 5) | (38,710) | 38,710 | ||||||
Impact of adoption of new guidance for private equity fund investments (Note 5) | ASU 2016-01 | 10,267 | |||||||
Impact of adoption of new guidance for private equity fund investments (Note 5) | 10,267 | 10,267 | ||||||
Repurchase of ordinary shares (Note 21) | $ (249,263) | (249,263) | ||||||
Repurchase of ordinary shares (Note 21) (in shares) | (2,963) | |||||||
Sale (Purchase) of subsidiaries' shares to/from non-controlling interests | (1,341) | (1,341) | ||||||
Settlement of stock-based awards in a subsidiary | 16,766 | (15,988) | 778 | |||||
Net income | 125,562 | 300,764 | 426,326 | |||||
Currency translation adjustments | (85,209) | (34,438) | (119,647) | |||||
Balances at Dec. 31, 2018 | $ 10,961 | $ 7 | $ (733,705) | 3,261,795 | (33,223) | 211,956 | 1,045,081 | 3,762,872 |
Balances (in shares) at Dec. 31, 2018 | 82,411 | 7 | (13,043) | |||||
Increase (Decrease) in Shareholders' Equity | ||||||||
Issuance of ordinary shares pursuant to stock plans | $ 121 | (114) | 7 | |||||
Issuance of ordinary shares pursuant to stock plans (in shares) | 907 | |||||||
Non-cash stock-based compensation expenses | 56,731 | 65,140 | 121,871 | |||||
Repurchase of ordinary shares (Note 21) | $ (61,691) | (61,691) | ||||||
Repurchase of ordinary shares (Note 21) (in shares) | (1,825) | |||||||
Share of changes in the equity investee's capital accounts (Note 5) | 5,172 | 5,172 | ||||||
Sale (Purchase) of subsidiaries' shares to/from non-controlling interests | 2,208 | (6,939) | (4,731) | |||||
Settlement of stock-based awards in a subsidiary | 12,699 | (12,378) | 321 | |||||
Net income | (70,542) | 179,269 | 108,727 | |||||
Currency translation adjustments | (23,894) | (10,741) | (34,635) | |||||
Balances at Dec. 31, 2019 | $ 11,082 | $ 7 | $ (795,396) | $ 3,338,491 | $ (57,117) | $ 141,414 | $ 1,259,432 | $ 3,897,913 |
Balances (in shares) at Dec. 31, 2019 | 83,318 | 7 | (14,868) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 108,727 | $ 426,326 | $ 349,563 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of property and equipment | 36,155 | 32,122 | 28,642 |
Amortization of intangible assets and lease right-of-use assets | 19,611 | 9,110 | 4,560 |
Amortization of convertible debt and senior notes issuance cost (Note 21) | 4,803 | 4,140 | 690 |
Stock-based compensation | 121,871 | 95,069 | 91,387 |
Provision for allowance for doubtful accounts | 50,313 | 15,424 | 8,465 |
Provision for allowance of financing receivables | 20,755 | ||
Deferred tax (benefits) provision | 46,802 | 33,560 | (3,214) |
Loss (income) from equity method investments, net | (24) | (1,120) | 16,070 |
Fair value changes through earnings on investments, net (Note 5) | (165,295) | (96,533) | |
Dividends received from equity method investments | 2,706 | 4,236 | 7,680 |
Realized loss (gain) on investments | 2,410 | (2,729) | (132,007) |
Investment related impairment | 342,049 | 81,281 | 122,970 |
Goodwill and acquired intangibles impairment (Note 8) | 23,245 | ||
Foreign exchange loss | 32 | ||
Gain on disposal of property and equipment | (353) | (249) | (178) |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | (143,536) | (281,955) | (61,339) |
Prepaid expenses and other current assets | (21,107) | (39,127) | (15,578) |
Other assets | 110 | (9,440) | (1,008) |
Accounts payable | 1,409 | 49,649 | 15,963 |
Amount due to customers | 25,943 | (119,119) | (25,155) |
Accrued expenses and other current liabilities | 290,579 | 68,590 | 113,983 |
Income taxes payable | 14,023 | 17,029 | 58,825 |
Deferred revenues | (4,162) | 1,495 | 15,973 |
Operating lease liabilities | (10,715) | ||
Others | 944 | 1 | (2) |
Net cash provided by operating activities | 744,018 | 311,037 | 596,290 |
Cash flows from investing activities: | |||
Purchases of short-term investments | (1,231,893) | (2,357,346) | (2,140,946) |
Maturities of short-term investments | 1,076,362 | 2,933,641 | 1,166,184 |
Financing receivables originated | (849,428) | ||
Principal collection on financing receivables | 595,734 | ||
Cash paid for business combination, net of cash acquired (Note 6) | (270) | (47,042) | 242 |
Purchases of property and equipment | (29,924) | (46,451) | (44,907) |
Purchases of land use rights | (216,050) | ||
Cash paid (including prepayments) on long-term investments | (885,962) | (1,008,444) | (150,448) |
RMB deposit received from (repaid to) E-House (Note 5) | (135,386) | ||
Consideration received from E-House for share exchange with Leju (Note 5) | 127,600 | ||
Repayment from a third party | 21,000 | ||
Proceeds from disposal of investments or refund of prepayment on long-term investments | 148,748 | 293,459 | 168,486 |
Others | 375 | 324 | 228 |
Net cash used in investing activities | (1,176,258) | (447,909) | (987,947) |
Cash flows from financing activities: | |||
Proceeds from issuance of ordinary shares pursuant to stock plans | 283 | 2,305 | 3,220 |
Proceeds from issuance of shares to New Wave, a related party (Note 18) | 7 | ||
Proceeds received from non-controlling interests shareholders | 385 | 20,330 | |
Cash paid for purchase of non-controlling interests in subsidiary | (5,403) | (1,792) | (1,844) |
Proceeds from issuance of Weibo convertible senior notes, net of issuance cost (Note 21) | 879,293 | ||
Proceeds from issuance of Weibo senior notes, net of issuance cost (Note 21) | 793,325 | ||
Repayment of senior convertible notes of SINA (Note 21) | (153,085) | ||
Repurchase of ordinary shares (Note 21) | (61,691) | (249,263) | (47,624) |
Proceeds from short-term bank loans | 114,691 | 143,873 | 87,560 |
Repayment of short-term bank loans | (111,505) | (150,552) | (33,733) |
Proceeds from third-party loans | 2,061 | ||
Repayment of third-party loans | (20,239) | ||
Proceeds from funding debts | 216,332 | ||
Repayment of principal on funding debts | (15,234) | ||
Net cash provided by (used in) financing activities | 933,244 | (408,514) | 886,970 |
Effect of exchange rate change on cash, cash equivalents and restricted cash | (7,807) | (18,485) | 62,459 |
Net increase (decrease) in cash, cash equivalent and restricted cash | 493,197 | (563,871) | 557,772 |
Cash, cash equivalents and restricted cash at the beginning of the year | 1,642,832 | 2,206,703 | 1,648,931 |
Cash, cash equivalents and restricted cash at the end of the year | 2,136,029 | 1,642,832 | 2,206,703 |
Supplemental disclosures: | |||
Cash paid for income taxes | (85,090) | (77,937) | (17,313) |
Cash paid for interest, net of amounts capitalized | (15,319) | (16,836) | (1,987) |
Cash paid for amounts included in the measurement of lease liabilities | (13,543) | ||
Operating lease assets obtained in exchange for operating lease liabilities | 2,035 | ||
Non-cash investing and financing activities | |||
In-kind distribution of Weibo's shares (Note 18) | 554,016 | ||
Unpaid consideration for acquisitions | 54 | 10,055 | 5,704 |
Consideration settled for acquisitions (Note 6) | (10,000) | ||
Changes in account payable related to property and equipment addition | $ (642) | $ (395) | $ (12,369) |
Operations
Operations | 12 Months Ended |
Dec. 31, 2019 | |
Operations | |
Operations | 1. Operations Sina Corporation (“SINA” or the “Company”) is an online media company serving China and the global Chinese communities. The Company’s digital media network of SINA media (portal) properties, including SINA mobile apps, mobile portal and SINA.com, and Weibo (social media) enable Internet users to access professional media and user generated content (UGC) in multi-media formats from desktop personal computers and mobile devices and share their interests with friends and acquaintances. SINA mobile provides news information and entertainment content from SINA.com customized for mobile users in WAP (mobile browser) format, SINA.cn and mobile application format. SINA.com offers distinct and targeted professional content on each of its region specific websites and a full range of complementary offerings. Weibo is a leading social media for people to create, share and discover Chinese-language content. By providing an unprecedented and simple way for people and organizations to publicly express themselves in real time, interact with others on a massive global platform and stay connected with the world, Weibo has had a profound social impact in China. Through these properties and other product lines, the Company offers an array of online media and social media services to users to create a rich canvas for businesses and advertisers to effectively connect and engage with their targeted audiences. The Company generates the majority of its revenues from online advertising and marketing services, and, to a lesser degree, from fee-based services. On April 17, 2014, Weibo completed its initial public offering (“IPO”) on the Nasdaq Global Select Market. After Weibo’s offering, SINA continues to control Weibo and consolidates Weibo as its controlling shareholder, but recognizes non-controlling interest reflecting the shares held by the shareholders other than SINA in the consolidated financial statements. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of presentation and use of estimates The preparation of the Company’s consolidated financial statements is in conformity with Generally Accepted Accounting Principles in the United States (“US GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the periods reported. Actual results may differ materially from such estimates. The Company believes the basis of consolidation, fair value, the recognition of non-controlling interests, revenue recognition, taxation, business combination, net income (loss) per share, goodwill and other long-lived assets, allowances for doubtful accounts, the allowance for financing receivables, long-term investments, guarantee liabilities, stock-based compensation, convertible debt and foreign currency represent critical accounting policies that reflect the more significant judgments and estimates used in the preparation of its consolidated financial statements. In February 2016, the Financial Accounting Standards Board (“FASB”) issued a new standard on leases, ASU 2016-02, "Leases (Topic 842)", and then in July 2018, the FASB issued an amendment, ASU 2018-11. The Company has adopted the new lease standard beginning the first quarter of fiscal year 2019 and elected to apply practical expedients permitted under the transition method and did not retrospectively adjust the prior comparative periods. Under the new lease standard, the Company determines if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at lease commencement date based on the present value of remaining lease payments over the lease terms. The Company considers only payments that are fixed and determinable at the time of lease commencement. The adoption of new leasing guidance resulted in recognition of $36.7 million of right-of-use asset and $37.5 million of leasing liability as of January 1, 2019, respectively (Refer to Note 7 for details). In May 2014, FASB issued, ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." The Company adopted new revenue guidance since January 1, 2018 using the modified retrospective method. Results for reporting periods beginning on or after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company's historic accounting method under ASC 605. The main impacts are a) the presentation of value added tax recognized in revenue from "gross" to "net", which results in equal decrease of revenues and cost of revenues, and b) the recognition of revenues and expenses at fair value for advertising barter transactions, which mainly results in the increase of revenue and advertising expenses. The cumulative-effect adjustment on the retained earnings as of January 1, 2018 related to the initial application of the new revenue standard was immaterial. In January 2016, the FASB issued an updated guidance, ASU 2016-1, Classification and Measurement of Financial Instruments, which intended to improve the recognition and measurement of financial instruments. The Company adopted the guidance as of the beginning of the fiscal year of 2018. After the adoption of this new accounting update in the first quarter of 2018, the Company measures equity investments other than equity method investments at fair value through earnings, which could vary significantly quarter to quarter. For those investments without readily determinable fair values, the Company elects to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Changes in the basis of these investments are reported in current earnings starting from January 1, 2018. The cumulative effects of initially applying the guidance mainly related to the reclassification of unrealized gain of $38.7 million from accumulated other comprehensive income to retained earnings in relation to the available-for-sale securities on January 1, 2018, the date of initially applying the guidance (Refer to Note 5 for details). Consolidation The consolidated financial statements include the accounts of the Company, its wholly-owned and majority-owned subsidiaries and its variable interest entities (“VIEs”), of which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated. To comply with PRC laws and regulations, the Company provides substantially all of its Internet content, online loan facilitation services, online payment services and mobile value added service (“MVAS”) in China via its VIEs, which hold critical operating licenses that enable the Company to do business in China. Substantially all of the Company’s revenues, costs and net income (loss) in China are directly or indirectly generated through these VIEs. The Company has signed various agreements with its VIEs and legal shareholders of the VIEs to allow the transfer of economic benefits from the VIEs to the Company and to direct the activities of the VIEs. The Company’s VIEs are wholly or partially owned by nominee shareholders of the Company except for the consolidated trusts (Note 4). The capital for the VIEs is funded by the Company and recorded as interest-free loans to these nominee shareholders. These loans were eliminated with the capital of the VIEs during consolidation. Under various contractual agreements, nominee shareholders of the VIEs are required to transfer their ownership in these entities to the Company’s subsidiaries in China when permitted by PRC laws and regulations or to designees of the Company at any time for the amount of loans outstanding. All voting rights of the VIEs are assigned to the Company, and the Company has the right to appoint all directors and senior management personnel of the VIEs. The Company has also entered into exclusive technical service agreements with the VIEs, under which the Company provided technical and other services to the VIEs. In addition, nominee shareholders of the VIEs have pledged their shares in the VIEs as collateral for the non-payment of loans or for the technical and other services fees due to the Company. As of December 31, 2018 and 2019, the total amount of interest-free loans to these nominee shareholders was $294.9 million and $292.7 million, respectively. The aggregate accumulated income were approximately $32.2 million and $79.0 million as of December 31, 2018 and 2019 respectively, which have been included in the consolidated financial statements. The following table sets forth the assets, liabilities, results of operations and changes in cash, cash equivalents and restricted cash of the VIEs and their subsidiaries taken as a whole, which were included in the Company’s consolidated balance sheets and statements of comprehensive income (loss) with intercompany transactions eliminated: As of December 31, 2018 2019 (In thousands) Total assets $ 1,142,515 $ 1,604,422 Total liabilities $ 748,354 $ 1,286,259 Year Ended December 31, 2017 2018 2019 (In thousands) Net revenues $ 1,372,419 $ 1,842,602 $ 1,943,995 Net income after intercompany service fee charge $ 35,649 $ 67,063 $ 46,838 Year Ended December 31, 2017 2018 2019 (In thousands) Net cash provided by (used in) operating activities $ (78,813) $ (84,961) $ 373 Net cash used in investing activities (70,971) (443,588) (552,829) Net cash provided by financing activities 128,730 399,182 746,979 Net increase (decrease) in cash, cash equivalents and restricted cash $ (21,054) $ (129,367) $ 194,523 As of December 31, 2018 and 2019, the total assets for the consolidated VIEs were $1,142.5 million and $1,604.4 million, respectively, which mainly comprised of $184.6 million and $276.1 million in cash, cash equivalents and short-term investments, $97.0 million and $184.1 million in restricted cash and the remaining balances include goodwill, intangible assets, accounts receivable, prepaid expenses and other current assets, financing receivables, operating lease right-of-use assets, long-term investments and property and equipment and other assets. As of December 31, 2018 and 2019, total liabilities for the consolidated VIEs were $748.4 million and $1,286.3 million, respectively, which mainly included $400.7 million and $662.0 million in accrued expenses and other current liabilities, $97.0 million and $121.6 million in amounts due to customers related to SINA Pay, $31.5 million and $42.1 million in income taxes payable, $97.8 million and $94.9 million in deferred revenues, $59.2 and $51.6 million in short-term bank loan, $173.8 million in short-term funding debts, $4.2 million in short-term operating lease liabilities, $22.3 million in long-term funding debts, and $4.5 million in long-term operating lease liabilities, respectively. Under the contractual arrangements with the VIEs, the Company has the power to direct activities of the VIEs and can have assets transferred freely out of the VIEs without restrictions. Therefore, the Company considers that there is no asset of VIEs that can only be used to settle obligations of the respective VIEs, except for registered capital and PRC statutory reserves of VIEs amounting to a total of $374.2 million and $376.3 million as of December 31, 2018 and 2019, respectively. Since the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Company is conducting certain businesses mainly through its VIEs, the Company may provide such support on a discretionary basis in the future, which could expose the Company to a loss. The following is a summary of the Company’s major VIEs and subsidiary of VIEs as of December 31, 2019: ● Beijing SINA Internet Information Service Co., Ltd. (the “ICP Company”), a Chinese company controlled through business agreements, is responsible for operating www.sina.com and www.sina.cn in connection with its Internet content company license, sell online advertising and provide MVAS with its Value-Added Telecommunication Services Operating License via third-party operators in China. It is owned by four nominee shareholders of the Company. The register capital of the ICP Company is $121.7 million. ● Beijing Star-Village Online Cultural Development Co., Ltd. (“StarVI”), formerly Beijing Star-Village.com Cultural Development Co., Ltd, a Chinese company controlled through business agreements, mainly is responsible for providing online advertising services through SINA News APP and www.sina.cn since April 2017. Before this, Star VI mainly provided MVAS in China via third-party operators under its Value-Added Telecommunication Services Operating License. It is owned by three nominee shareholders of the Company. The registered capital of the StarVI is $1.2 million. ● Jinzhuo Hengbang Technology (Beijing) Co., Ltd. (“the IAD Company”), formerly Beijing SINA Infinity Advertising Co., Ltd., is an advertising agency in China controlled through business agreements and approved for the design, production, issuance and serving as an agency of advertisements. It is owned by two nominee shareholders of the Company. The registered capital of the IAD Company is $24.8 million. ● Beijing Weimeng Technology Co., Ltd (“Weimeng”), a Chinese company controlled through business agreement, is responsible for operating www.weibo.com and www.weibo.cn in connection with its Internet content company license and providing MVAS in China via third-party operators under its Value-Added Telecommunication Services Operating License. It is owned by four nominee shareholders of the Company. The registered capital of Weimeng is $84.9 million. ● Beijing Weibo Interactive Internet Technology Co., Ltd. (‘‘Weibo Interactive’’) , an online-game platform company, was acquired by the IAD Company in May 2013. All of the equity interest in Weibo Interactive was transferred to Weimeng in December 2013. The registered capital of Weibo Interactive is $8.7 million. ● Beijing Sina Payment Technology Co., Ltd. (“SINA Pay”), an online payment service company wholly owned by the ICP Company. The registered capital of SINA Pay is $15.7 million. ● Beijing Weiju Future Technology Co. Ltd. ("Weiju"), a lending related service company, was acquired by the Company in July 2017. The registered capital of Weiju is $3.7 million. Unrecognized revenue-producing assets held by the VIEs mainly include licenses, such as the Internet Content Provision License, the Value-Added Telecommunication Services Operating License, the Online Culture Operating Permit, the Internet News Publication License, the Payment Service License and trademarks, patents, copy rights and the domain names. Recognized revenue-producing assets held by the VIEs include core technology, vendor-relationship contracts, trademarks, domain names, customer lists relating to game-related services, lending-related service, living streaming and online payment platform technology, arising from acquisitions. Unrecognized revenue-producing assets, held by the Wholly Foreign Owned Enterprises (“WFOEs”), include customer lists relating to advertising and marketing services, game-related services, Weibo VIP memberships and data licensing, as well as trademarks. The following is a summary of the VIE agreements between the Company's wholly owned subsidiary, Sina.com Technology (China) Co., Ltd. ("STC"), VIE ICP Company and ICP Company's shareholders: Loan Agreements. Share Transfer Agreements. Agreements on Authorization to Exercise Shareholder’s Voting Power. Each shareholder of the ICP Company has authorized STC to exercise all of his/her voting power as a shareholder of the ICP Company. The authorizations are irrevocable and will not expire until the ICP Company dissolves. Modification, supplement or adjustment of the terms may only be made with the consents from STC. Share Pledge Agreements. Each shareholder of the ICP Company has pledged all of his/her shares in ICP Company and all other rights relevant to the share rights to STC, as a collateral security for his/her obligations to pay off all debts to STC under the loan agreement and for the payment obligations of the ICP Company under the trademark license agreement and the technical services agreement. In the event of default of any payment obligations, STC will be entitled to certain rights, including transferring the pledged shares to itself and disposing of the pledged shares through a sale or auction. During the term of each agreement, STC is entitled to receive all dividends and distributions paid on the pledged shares. The pledges will be effective until the earlier of Loan Repayment Agreements. Exclusive Technical Services Agreements. Each shareholder of the ICP Company below has entered into an exclusive technical services agreement with STC pursuant to which STC is engaged to provide certain technical services to the ICP Company. The exclusive technical services agreement can only be prematurely terminated by STC and will not expire until the ICP Company dissolves, and the service fees are adjusted annually through written agreements. Due to its control over the respective VIEs, the Company’s wholly owned subsidiaries have the right to determine the service fees to be charged to the respective VIEs by considering, among others, the technical complexity of the services, the actual costs that may be incurred for providing the services, the operations of each VIE, applicable tax rates, planned capital expenditures and business strategies. The ICP Company has engaged STC to provide technical services for its (i) online advertising and other related businesses, and (ii) value-added telecommunication and other related businesses. The ICP Company is obligated to pay service fees to STC. Exclusive Sales Agency Agreements. The ICP Company has granted STC the exclusive right to distribute, sell and provide agency services for all the products and services provided by the ICP Company. These exclusive sale agency agreements will not expire until the ICP Company is dissolved. The Exclusive Sales Agency Agreements enable STC to collect sales agency fees from the ICP Company if STC decide to do so. Trademark License Agreements. STC has granted the ICP Company trademark licenses to use the trademarks held by STC, in specific areas, and the ICP Company is obligated to pay license fees to STC. The terms of these agreements are for (i) STC, VIE IAD Company and IAD Company’s shareholders, (ii) the subsidiary Starshining Mobile Technology (China) Ltd. (“Star Shining”), VIE StarVI and StarVI’s shareholders, and (iii) the subsidiary Weibo Internet Technology (China) Ltd. (“Weibo Technology”), VIE Weimeng and Weimeng’s shareholders have also entered into VIE agreements in substantially the same form as described above, except for the below specific services provided under the exclusive technical services agreement. The IAD Company has engaged STC to provide technical services for its (i) online advertising and other related businesses, and (ii) value-added telecommunication and other related businesses. Pursuant to changes in applicable PRC laws in 2008, SINA established StarVI has engaged Star Shining to provide technical services for its Internet information service, and Star Shining has the sole right to appoint any company or companies at its discretion to perform such technical services. Weimeng has engaged Weibo Technology to provide technical services for its online advertising and other related businesses. The service fees that the Company's wholly owned subsidiaries charged to the major VIEs amounted to $784.8 million, $985.6 million and $951.0 million, respectively, for the fiscal years ended December 31, 2017, 2018 and 2019, respectively. The Company believes that the contractual arrangements among its subsidiaries, the VIEs and its shareholders are in compliance with the current PRC laws and legally enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. As a result, the Company may be unable to consolidate the VIEs and its subsidiary in the consolidated financial statements. The Company’s ability to control its VIEs also depends on the authorization by the shareholders of the VIEs to exercise voting rights on all matters requiring shareholders’ approval in the VIEs. The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable. In addition, if the legal structure and contractual arrangements with its VIEs were found to be in violation of any future PRC laws and regulations, the Company may be subject to fines or other actions. The Company believes the possibility that it will no longer be able to control and consolidate its VIEs as a result of the aforementioned risks and uncertainties is remote. Non-controlling interests For the Company’s majority-owned subsidiaries and VIEs, non-controlling interests are recognized to reflect the portion of their equity that are not attributable, directly or indirectly, to the Company as the controlling shareholders. The majority of the Company’s non-controlling interests relate to Weibo Corporation and its subsidiaries. To reflect the economic interest in Weibo held by non-controlling shareholders, Weibo’s net income (loss) attributable to the non-controlling ordinary shareholders is recorded as non-controlling interests in the Company’s consolidated statements of comprehensive income (loss). Non-controlling interests are classified as a separate line item in the equity section of the Company’s consolidated balance sheets and have been separately disclosed in the Company’s consolidated financial statements to distinguish the interests from that of the Company. Fair value All financial assets and liabilities are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The Company remeasures the equity method investments at fair value on a non-recurring basis only if an impairment charge were to be recognized. For those investments without readily determinable fair value, the Company measures them at fair value when observable price changes or impairments are identified. The fair values of the Company’s privately held investments as disclosed are determined based on the discounted cash flow model using the discount curve of market interest rates or based on the similar transaction price in the market directly. The fair values of the Company’s equity investments in the equity securities of publicly listed companies are measured using quoted market prices. The fair values of the Company's investments in private equity funds are measured using net asset value per share as a practical expedient, provided certain criteria are met. The Company’s non-financial assets, such as intangible assets, goodwill and fixed assets, would be measured at fair value only if they were determined to be impaired. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: ● Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. ● Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. ● Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Company uses significant unobservable inputs to measure the fair value of guarantee liabilities and loan investment accounted for using fair value option ("FVO Loan Investment") (Note 20). Guarantee liabilities and FVO Loan Investment are categorized in the Level 3 valuation hierarchy based on the significance of unobservable factors. The carrying amount of cash and cash equivalents, short-term investments, restricted cash, accounts receivable and other current assets (excluding for FVO Loan Investment), accounts payable, financing receivables, funding debts, short-term operating lease liabilities, short-term bank loan, amount due to customers and accrued expenses and other current liabilities (excluded for guarantee liabilities) approximates their fair value. Net income (loss) per share Basic net income (loss) per share is computed using the weighted average number of ordinary shares outstanding during the period. Options to purchase ordinary shares and restricted share units are not considered outstanding in computation of basic earnings (loss) per share. Diluted net income (loss) per share is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period, which include options to purchase ordinary shares, restricted share units and conversion of the convertible debt. The computation of diluted net income (loss) per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net income (loss) per share. Additionally, the Company takes into account the effect on consolidated net income (loss) per share of dilutive shares of entities in which the Company holds equity interests and interest expenses along with relevant amortized issuance costs of convertible debt under certain circumstances. The dilutive impact from equity interests mainly include long-term investments accounted for using the equity method and the consolidated subsidiaries, such as Weibo. Cash equivalents The Company considers all highly liquid investments with original maturities of three months or less as cash equivalents. Cash equivalents are comprised of investments in time deposits that mature within three months, which are stated at cost plus accrued interest, and money market funds are stated at fair market value. Restricted cash and amount due to customers The restricted cash primarily represents :(i) cash temporarily held on account for the merchant customers of the Company through the SINA Pay online payment platform and is considered legally restricted with the release of Measures for Online Payment Business of Non-financial Institutions by the People’s Bank of China (“PBOC”) in December 2015; (ii) cash received via consolidated trusts that has not yet been distributed (Note 4); (iii) security deposits set aside for partnering commercial banks or certain institutional funding partners in case of borrowers' defaults (see " Off-balance sheet loan facilitation service Amount due to customers represents the balances that are payable on demand to customers and therefore reflected as current liability on the consolidated balance sheets. The SINA Pay customer accounts are used to facilitate payments to online merchants or third party banks and are deemed as pass through accounts between the payer and the online merchant. The balances are in-transit to customers and the payments are normally made within the normal trade settlement dates. The changes in amount due to customers are presented within operating activities in the consolidated statements of cash flows. Financing receivables, net Since January 2019, the Company set up a series of trusts to issue loans to the individual borrowers recommended by it. The purpose of this arrangement is to expand the funding resource for the lending business. The trusts are administered by third-party trust companies, which act as the trustees, with funds contributed by the Company and/or other third-party investors for the purposes of providing returns to the beneficiary of the trusts. The Company has power over the activities that most significantly impact the economic performance of the trusts and also absorbs substantially all of the variability in the trusts. Therefore, the Company has the right to receive benefits and the obligation to absorb losses from the trusts that could potentially be significant to the trusts. As a result, the trusts are VIEs and are consolidated under Accounting Standards Codification ("ASC") 810, Consolidation. Financing receivables represent loans facilitated through the consolidated trusts, which is measured at amortized cost. Financing receivable are recorded at unpaid principal balances and interest and financing services fee receivables , net of allowance for loan losses that reflects the Company's best estimate of the amounts that will not be collected. The proceeds received from third-party investors of the consolidated trusts are recorded as funding debts. Cash received by the consolidated trusts that has not yet been distributed is recorded as restricted cash. The allowance for loan losses is determined at a level believed to be reasonable to absorb probable losses inherent in the portfolio of the financing receivables as of each balance sheet date. The allowance is provided based on the Company's assessments performed both on an individual-loan basis and collective basis. All loans are assessed depending on factors such as delinquent rate, size and other risk characters of the portfolio. The Company considers a financing receivable to be delinquent when a monthly payment is one day past due. When the Company determines it is probable that it will be unable to collect unpaid principal amount on the receivable, the remaining unpaid principal balance is charged off against the allowance for credit losses. The primary factor in making such determination is the assessment of potential recoverable amounts from the delinquent debtor. Interest and financial services income for nonaccrual financing receivables is recognized on a cash basis. The Company does not resume accrual of interest after a loan has been placed on nonaccrual status. Funding debts For the proceeds received from the third-party investors of the consolidated trusts to fund the Company's on-balance sheet financing receivables, are recorded as funding debts on the consolidated balance sheets. Accrued interest payable is calculated based on the contractual interest rates of the funding debts and is presented in accounts payable in the consolidated balance sheets with the amount of $1.1 million as of December 31, 2019. Short-term bank loans Short-term bank loans as of December 31, 2018 and 2019 amounted to $78.2 million and $81.6 million, respectively, which consisted of several bank borrowings denominated in RMB. All of these bank borrowings were repayable within one year. The effective interest rate for the outstanding borrowings for 2018 and 2019 ranged from approximately 4.4% to 4.8% per annum. Business combination Business combinations are recorded using the purchase method of accounting, and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of the (i) the total of consideration of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the subsidiary acquired over (ii) the fair value of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the consideration of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income (loss). In a business combination achieved in stages, the Company remeasures its previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the re-measurement gain or loss, if any, is recognized in earnings. The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and non-controlling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Company determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows ove |
Cash, Cash Equivalents, Restric
Cash, Cash Equivalents, Restricted Cash and Short-term Investments | 12 Months Ended |
Dec. 31, 2019 | |
Cash, Cash Equivalents, Restricted Cash and Short-term Investments | |
Cash, Cash Equivalents, Restricted Cash and Short-term Investments | 3. Cash, Cash Equivalents, Restricted Cash and Short-term Investments Cash, cash equivalents and restricted cash consisted of the following: As of December 31, 2018 2019 (In thousands) Cash and cash equivalents: Cash $ 1,383,610 $ 1,907,310 Cash equivalents: Bank time deposits (maturing within 3 months) 75,367 25,625 Money market funds 86,823 18,951 162,190 44,576 1,545,800 1,951,886 Restricted cash 97,032 184,143 Total cash, cash equivalents and restricted cash $ 1,642,832 $ 2,136,029 Short-term investments: Bank time deposits $ 799,534 $ 951,953 The carrying amounts of cash, cash equivalents, restricted cash and short-term investments approximate fair values. Interest income for the years ended December 31, 2017, 2018 and 2019 was $43.2 million, $83.2 million and $86.5 million, respectively. The maturity dates of the bank time deposits are within one year. |
Financing receivables, net
Financing receivables, net | 12 Months Ended |
Dec. 31, 2019 | |
Financing receivables, net | |
Financing receivables, net | 4. Financing receivables, net Financing receivables originated and retained by the Company consist of the following: As of December 31, 2019 (In thousands) Financing receivables $ 246,864 Allowance for financing receivables (20,766) Financing receivables, net $ 226,098 The total financing receivables balance represents the outstanding loans made to the borrowers from consolidated trusts and loans held by Weiju, a subsidiary of the Company with an original term less than one year and do not have collateral. As part of the company’s efforts to develop new product offerings for institutional funding partners, the Company has established a series of trusts administrated by third-party trust companies since January 2019. These trusts invest solely in loans originated through the Company’s platform to provide returns to the beneficiaries, including the Company. Since the trusts only invest in loans originated through the Company, the Company has power to direct the activities of the trusts. Also, the Company is either the sole beneficiary of some trusts or has the obligation to absorb losses or the right to receive benefits from some trusts that could potentially be significant to these trusts. As a result, the Company is considered the primary beneficiary of the trusts and their assets, liabilities, results of operations and cash flows are consolidated accordingly. The cash of the consolidated trust that will be issued loans to the borrowers is presented as restricted cash in the consolidated balance sheet with amounts of $56.1 million as of December 31, 2019. Aging analysis of past due financing receivables as of December 31, 2019 Year ended December 31, 2019 (In thousands) Days past due 1-29 $ 4,859 30-59 4,151 60-89 2,993 90-179 6,099 180 or greater 2,190 Total past due 20,292 Current 226,572 Total financing receivables $ 246,864 The following table sets forth the movement of the allowance for financing receivables for the years ended December 31, 2019. Year ended December 31, 2019 (In thousands) Balance at beginning of year $ — Current period provision (20,755) Foreign exchange impact (11) Balance at end of year $ (20,766) The Company evaluates the creditworthiness and collectability of its financing receivable portfolio on a pooled basis, due to its composition of small, homogeneous financing receivables with similar general credit risk characteristics. |
Long-term Investments
Long-term Investments | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Investments | |
Long-term Investments | 5. Long-term Investments Long-term investments comprised investments in publicly traded companies, privately held companies and limited partnerships. The following sets forth the changes in the Company’s long-term investments. Available for Cost Sale Securities/ Method/Equity Equity Securities Securities With Readily Without Readily Equity Method Determinable Determinable Fair (Leju) (Others) Fair Values Values Total (In thousands) Balance at January 1, 2017 $ 199,662 $ 181,965 $ 154,289 $ 782,291 $ 1,318,207 New investments/transferred from prepayments — 26,204 10,000 132,079 168,283 Income (loss) from investments (30,796) 14,726 — — (16,070) Investment impairment (113,103) (1,207) (1,275) (6,513) (122,098) Unrealized loss, net — — (35,607) — (35,607) Disposal/dilution/refund of investments — 19,112 (22,248) (10,410) (13,546) Changes from cost method to consolidation (Note 6) — — — (29,071) (29,071) Changes from cost method to equity method — 19,121 — (19,121) — Changes from cost method to available-for-sale securities — — 2,213 (2,213) — Dividend received/entitled — (7,829) — — (7,829) Others* 1,646 5,330 — 19,571 26,547 Balance at December 31, 2017 $ 57,409 $ 257,422 $ 107,372 $ 866,613 $ 1,288,816 Impact of adoption of new investment guidance ** — — 37,686 (27,419) 10,267 New investments/transferred from prepayments — 140,379 149,140 382,031 671,550 Income (loss) from equity method investments (9,080) 10,200 — — 1,120 Investment impairment — (5,699) — (55,289) (60,988) Disposal/dilution/refund of investments — 3,235 (87,351) — (84,116) Changes from investment without readily determinable fair value to those with readily determinable fair value — — 30,000 (30,000) — Fair value change through earnings (including adjustment of subsequent observable price changes) — — (70,020) 166,553 96,533 Dividend received/entitled — (4,087) — — (4,087) Others* (186) (8,235) (891) (19,940) (29,252) Balance at December 31, 2018 $ 48,143 $ 393,215 $ 165,936 $ 1,282,549 $ 1,889,843 New investments/transferred from prepayments — 139,957 29,566 360,428 529,951 Income (loss) from equity method investments 5,080 (5,056) — — 24 Investment impairment — (38,620) — (282,819) (321,439) Disposal/dilution/refund of investments — (10,338) (20,890) (10,983) (42,211) Changes from investment without readily determinable fair value to those with readily determinable fair value — — 6,190 (6,190) — Fair value change through earnings (including adjustment of subsequent observable price changes) — — 163,454 (2,743) 160,711 Share of changes in the equity investee's capital accounts *** — 5,172 — — 5,172 Dividend received/entitled — (2,706) — — (2,706) Others* (2,609) (4,817) (7,702) (3,669) (18,797) Balance at December 31, 2019 $ 50,614 $ 476,807 $ 336,554 $ 1,336,573 $ 2,200,548 * Others mainly represents the impacts from foreign exchange change. For equity method investments, others represents the equity pick-up of other comprehensive income (loss) of investees caused by foreign exchange change. ** Upon the adoption of ASU 2016-01, $27.4 million of investments in private equity funds were adjusted to their NAV of $37.7 million and reclassified from cost method to equity investments with readily determinable fair value on January 1, 2018. *** The change of investee's capital accounts was due to sale of one equity method investee's subsidiary's share to non-controlling interests. The Company elected to record such change in an equity method investee's capital account as additional paid-in capital in its consolidated statements of shareholders' equity. Equity Method As of December 31, 2019, investments accounted for under the equity method totaled $527.4 million, which included a $50.6 million investment in Leju Holdings Limited (“Leju"), a $74.7 million investment in Tian Ge Interactive Holding Limited ("Tian Ge”) and a $94.1 million investment in Beijing Showworld Technology Co. Ltd. ("Showworld") ($48.1 million in Leju, $110.1 million in Tian Ge and a $46.6 million in Showworld as of December 31, 2018, respectively). Investments are accounted for under the equity method when the Company has significant influence in the investment and the investment is considered as in substance ordinary shares. Investments in limited partnerships, whose operating and financial policies the Company had significant influence over were also accounted for using the equity method. On April 15, 2016, E-House entered into a definitive agreement and plan of merger, or the Merger Agreement, with E-House Holdings Ltd., or Parent. Pursuant to the Merger Agreement, Parent acquired E-House for a cash consideration equal to $6.85 per ordinary share, and upon the closing of the merger, E-House continued as the surviving corporation and a wholly owned subsidiary of Parent. In connection with the transaction contemplated by the Merger Agreement, the Company made an equity contribution of approximately $140 million to Parent in August 2016 to subscribe newly issued shares of Parent. At the same time, the shares of E-House held by the Company were also rolled over and converted into the shares of Parent. On August 12, 2016, or the closing date, the Company held 49,764,809 ordinary shares of Parent, which represented 43% of Parent’s then total outstanding shares and had a cost basis then to the Company of $340.7 million. The Company also entered into a Shareholders Agreement with Parent and certain other shareholders of Parent on the closing date, under which the Company granted an option (“E-House Option”) to Parent to repurchase all the equity interest held by the Company in Parent during the 18-month period following the closing date for a consideration consisting of (i) 30% of the total outstanding ordinary shares of Leju at the time of the repurchase, and (ii) certain cash payment. In accordance with ASC Subtopic 815-10, the option is deemed legally detachable and separately exercisable from the repurchase of ordinary shares of Leju and, thus, accounted for as a freestanding instrument. The option was initially recognized as an option liability valued at $3.1 million on the basis of its fair value at the grant date, together with its subsequent changes in fair value were reflected in the fair value change in option liability. The fair value of option liability was determined by i) the number of Leju shares the Company received in this transaction, ii) the difference between the designated unit price of Leju shares agreed in the Shareholders Agreement by transaction parties and the fair value of unit price of Leju in the open market at each period end and iii) time value of the option liability. Immediately prior to the exercise of the option, the fair value of the investor option liability was approximately $28.5 million. On December 30, 2016, Parent exercised such option right and repurchased 49,764,809 of its ordinary shares from the Company, for the aggregate consideration comprised of 40,651,187 shares of Leju with a fair value of $195.1 million and approximately $127.6 million in cash. As a result, together with Leju Dividend Shares received in 2014 by the Company, on December 31, 2016, the Company totally held 42,117,874 Leju shares with a fair value of $202.2 million, which represented 31.1% of Leju’s then total outstanding shares, and ceased to hold any beneficial ownership in Parent. The Company used the equity method to account for the investment in Leju. During 2017, the U.S. dollar cash consideration was received from Parent, and an equivalent RMB deposit received in 2016 to ensure the later payment of cash consideration in U.S. dollar was repaid to the Parent. As a result of the share exchange, the Company recognized a one-time gain of On July 9, 2014, Tian Ge, an equity method investee of the Company, completed its initial public offering on the Main Board of The Stock Exchange of Hong Kong Limited with the new issuance of 349.9 million ordinary shares (“Tian Ge IPO”). Immediately after the Tian Ge IPO, the Company’s equity interest in Tian Ge was diluted from 36% to 25% and the Company in substance disposed part of its interest in Tian Ge. The closing price of Tian Ge as of December 31, 2019 was HK$1.94 (equivalent to $0.25) per share. The Company deemed that there was an other-than-temporary impairment for the investment in Tian Ge as of December 31, 2019 given the length of the underwater period and the magnitude of the stock price decrease. In addition, the revenue of Tian Ge demonstrated a downward trend due to decreasing active users and paying users in the live-streaming industry. Therefore, the Company wrote down the investment in Tian Ge to its fair value as of December 31, 2019, which was $74.7 million based on the quoted market price as of December 31, 2019 and the Company recognized an impairment loss of $34.3 million. On December 30, 2019, Showworld, an equity method investee of the Company, successfully listed on the Shanghai Stock Exchange with an issuance price of RMB3.0 (approximately $0.43) per share. Upon Showworld's listing, the Company's equity interest in Showworld, including the $34.7 million follow-on investment the Company made in January 2019 was diluted from 36.1% to 28.6% and the Company in substance disposed part of its interest in Showworld. As the Company continued to have significant influence over Showworld, the Company continued to apply equity method after Showworld's listing. The closing price of Showworld as of December 31, 2019 was RMB12.14 (equivalent to $1.74) per share, higher than its carrying amount per share (approximately $0.2). The aggregate market value of the Company's investment in Showworld is approximately $837.5 million. In 2018, the Company made a new investment of $48.0 million in a limited partnership, and accounted for the investment under equity method as significant influence could be imposed by the Company. The investment balance for this limited partnership as of December 31, 2018 and 2019 were $48.0 million and $46.0 million, respectively. In 2019, the Company made a new equity method investment of $57.4 million in a company providing consumer finance services. Other investments under equity method made during the presented periods were individually immaterial. The Company used equity method to account for investments in limited partnership unless the Company’s interest is so minor and has virtually no influence over the operating and financial policies of the partnership. Except for the investment in limited partnership, the ownership held by the Company in the equity method investees ranged from 20% to 50%. None of the Company's equity method investments meets the SEC’s definition of a significant subsidiary for the twelve months ended December 31, 2017, 2018 and 2019. The Company summarizes the condensed financial information of the Company’s equity method investments as a group below in accordance with Rule 4-08 of Regulation S-X. For the twelve months ended September 30, 2017 2018 2019 (In thousands) Operating data: Revenue $ 569,974 $ 888,767 $ 1,120,086 Gross profit $ 447,060 $ 562,892 $ 744,208 Income (loss) from operations $ (111,031) $ (39,854) $ 7,465 Net income (loss) $ (72,828) $ 60,972 $ (53,900) Net income (loss) attributable to the investees $ (70,913) $ 61,665 $ (53,148) As of September 30, 2018 2019 (In thousands) Balance sheet data: Current assets $ 1,045,113 $ 1,617,545 Long-term assets $ 1,455,556 $ 1,508,744 Current liabilities $ 295,372 $ 808,737 Long-term liabilities $ 32,330 $ 66,012 Non-controlling interests $ (898) $ 13,406 Equity Securities with Readily Determinable Fair Values Equity securities with readily determinable fair values include i) marketable equity securities, which are publicly traded stocks or funds measured at fair value and ii) investments in private equity funds which use NAV as practical expedient under ASC 820. Prior to January 1, 2018, the Company accounted for the marketable equity securities at fair value with unrealized gains and losses recognized in accumulated other comprehensive income. Upon the adoption of ASU 2016-01, the Company measures equity securities with readily determinable fair values at fair value through earnings. Due to the initial application of the ASU 2016-01, the Company reclassified a cumulative unrealized gain of $38.7 million in accumulated other comprehensive income arising from marketable securities to the retained earnings and also recognized a cumulative-effect adjustment of $10.3 million to increase its carrying amount for the investments qualified for NAV as practical expedient and credited to the retained earnings as of January 1, 2018. The following table shows the carrying amount and fair value of equity securities with readily determinable fair values including marketable securities and private equity funds: Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Other Value (In thousands) Jupai $ 23,068 $ — $ (7,119) $ — $ 15,949 Pintec 30,000 — (2,776) — 27,224 Other equity securities 74,844 4,562 (29,317) — 50,089 Private equity funds 58,246 16,277 (1,849) — 72,674 December 31, 2018 $ 186,158 $ 20,839 $ (41,061) $ — $ 165,936 Jupai $ 23,068 $ — $ (17,909) $ — $ 5,159 Pintec 30,000 — (25,268) — 4,732 Getui 6,190 195,699 — (7,619) 194,270 Other equity securities 75,442 8,467 (37,067) — 46,842 Private equity funds 66,819 18,732 — — 85,551 December 31, 2019 $ 201,519 $ 222,898 $ (80,244) $ (7,619) $ 336,554 The Company invested Jupai Holding Limited (“JP”) with a total cost of $7.8 million under cost method since 2014. In July 2015, JP completed its listing on the New York Stock Exchange (“JP IPO") and the investment was transferred to marketable securities which measures at fair value. As of December 31, 2019, the Company had a cumulative unrealized loss of $17.9 million in relation to the investment in JP. In June 2018, the Company invested Pintec Technology Holding Limited ("Pintec") with a total cost of $30 million, which was initially recorded under the investment without readily determinable fair value. In October 2018, Pintec completed its listing on the NASDQ Stock Exchange ("Pintec IPO") and the investment was transferred to marketable securities which measures at fair value from marked to market As of December 31, 2019, the Company had a cumulative unrealized loss of $25.3 million. On March 25, 2019, Zhejiang Daily Interactive Network Technology Co. Ltd ("Getui"), an intelligent data service provider, successfully listed on the Shenzhen Stock Exchange. Upon the completion of listing, the Company reclassified the investment in Getui from investment without readily determinable fair value accounted for under measurement alternative to investment with readily determinable fair value using fair value through earnings. As of December 31, 2019, the Company had the unrealized gain of $195.7 million. The marketable securities are valued using the market approach based on the quoted prices in active markets at the reporting date. The Company classifies the valuation techniques that use these inputs as Level 1 of fair value measurements (Note 20). Private equity funds pursue various investment strategies and investments in private equity generally are not redeemable due to the closed-ended nature of these funds. Instead, distributions from each fund will be received as the underlying investments of the funds are disposed and monetized. As of December 31, 2019, the unfunded commitments related to investments in private equity funds was $40 million. Investments in private equity funds may be subject to lock-up period, which is usually from 5 to 10 years and restricts an investor from withdrawing from the fund during the investment period. As of December 31, 2019, equity securities with readily determinable fair values were $336.6 million. For the years ended 2018 and 2019, the Company recognized a net loss of $74.2 million and a net gain $159.2 million, respectively, from the fair value change of marketable equity securities, which substantially was unrealized. The Company also recognized unrealized gain of $4.2 million and $4.3 million for the equity investments qualified NAV for the years ended 2018 and 2019, respectively. Equity Securities without Readily Determinable Fair Values Prior to January 1, 2018, the Company accounted for equity securities under cost method at cost less impairment. As of December 31, 2017, the equity securities previously accounted for under the cost method had a carrying value of $866.6 million. Started from January 1, 2018, the Company elected measurement alternative and recorded equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes. $27.4 million of investment in private equity funds were adjusted to their fair values of $37.7 million and reclassified from cost method to equity securities with readily determinable fair value. Based on ASU 2016-01, entities that elect the measurement alternative will report changes in the carrying value of the equity investments in current earnings. If this measurement alternative is elected, changes in the carrying value of the equity investment will be required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The implementation guidance notes that an entity should make "reasonable efforts" to identify price changes that are known or that can reasonably be known. In 2018, the Company invested in a) preference shares of two private companies in Fintech industry, which primarily focus on the insurance business and Fintech services, with the consideration of $96.4 million and $91.5 million, respectively; and b) preference shares of a private company, which primarily focus on developing artificial intelligence of automobile, with the consideration of $90.0 million. In 2019, the Company invested in a) additional preference shares of $100.0 million in a developer of mobile video apps, b) additional preference shares of $60.0 million in a private company, which primarily focus on developing artificial intelligence of automobile, and c) preference shares of $50.8 million in in a private company, which develop and operate a leading photo and video application. Other investments without readily determinable fair values made during the presented periods were individually immaterial. For the years ended 2018 and 2019, the Company recognized impairment amounted to $55.3 million and $282.8 million, respectively, related to investments without readily determinable fair value. The $282.8 million investment impairment recognized in 2019 included a) $177.8 million partial impairment of investment in preference shares of Yixia Tech Co., Ltd ("Yixia Tech") which is a developer of mobile video apps, due to its unsatisfied financial performance with no obvious upturn or potential financing solutions in the foreseeable future; b) $75.2 million full impairment of two equity investment due to significant performance deterioration caused by loss of certain significant cooperation agreement and financing difficulties coupled with investment losses; c) other $29.8 million full impairment of other investments primarily driven by revised projections of future operating results reflecting unfavorable macroeconomic conditions and performance of the investees. The fair value of a developer of mobile video APPs was estimated using market approach with a remaining carrying value of $129.5 million as of December 31, 2019 and was classified as Level 3 of fair value measurement. For each of these other investments, the fair value was derived using discounted cash flow analysis based on Level 3 inputs with a remaining value of nil as of December 31, 2019. As of December 31, 2018 and 2019, investments without readily determinable fair values were $1,282.5 million and $1,336.6 million, respectively. In 2018, the Company recorded $166.6 million gains from upward adjustments, mainly on two investments and $55.3 million impairment, respectively. In 2019, the Company recorded $2.7 million loss from downward adjustment and $282.8 million investment impairment. The downward adjustment and upward adjustment were based on identified observable price changes indicated by new issuance of identical securities of the same investee or transaction of identical securities between other existing shareholders. The Company classifies the valuation techniques on those investments that use similar identifiable transaction prices as Level 2 of fair value measurements. The Company did not dispose any interests of these investments and all of gains were unrealized as of December 31, 2018. In 2019, the Company disposed one of these investments, which recorded $4.0 million cumulative upward adjustments and $2.7 million downward adjustments in current year. The following table summarizes the total carrying value of the equity securities without readily determinable fair value and accounted for under measurement alternative as of December 31, 2018 and 2019. The amounts included cumulative unrealized upward and downward adjustments made to the initial cost basis of the securities: As of December 31, 2018 2019 (In thousands) Initial cost basis $ 1,191,225 $ 1,535,760 Upward adjustments 166,553 162,530 Impairment (55,289) (338,108) Foreign currency translation (19,940) (23,609) Total carrying value at the end of the period $ 1,282,549 $ 1,336,573 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions | |
Acquisitions | 6. Acquisitions The Company accounts for business combinations using the purchase method of accounting, which requires the acquisition cost to be allocated to the assets and liabilities of the Company acquired, including separately identifiable intangible assets, based on their estimated fair values. The Company makes estimates and judgments in determining the fair value of the acquired assets and liabilities based on independent appraisal reports as well as its experience with similar assets and liabilities in similar industries. If different judgments or assumptions were used, the amounts assigned to the individual acquired assets or liabilities could be materially different. Yizhibo On October 1, 2018 (“Acquisition Date”), Weibo entered into a series of business and asset transfer agreements with Yixia Tech Co., Ltd. (“Yixia Tech”) to acquire the whole live streaming business of Yizhibo, which was previously operated by Yixia Tech. The acquisition included the Yizhibo APP and related assets/technology, employees and business contracts with a cash consideration of $50.0 million. Weibo had paid $40 million consideration payable to Yixia Tech in 2018 and settled the rest $10 million in 2019 (Note 13). Weibo has engaged an independent valuation firm to help management determine the value of assets and liabilities from the acquisition. Total identifiable intangible assets acquired on acquisition date included supplier-relationship of $9.7 million with estimated useful life of five years , core technology of $6.6 million with estimated useful life of eight years , and trademark and domain name of $5.6 million with estimated useful life of ten years . The consideration of acquisition of Yizhibo was allocated based on their fair value of the assets acquired and the liabilities assumed as follows: As of Acquisition Date (In thousands) Consideration $ 50,000 Property and equipment, net 466 Identifiable intangible assets acquired 21,942 Other tangible assets 2,874 Liabilities assumed (2,434) Goodwill 27,152 Total $ 50,000 Weihui Prior to 2017, the Company held a 45% equity interest of Wexfin Inc. (“Weihui”), which is primarily engaged in providing technology service for financial service platforms, including design and develop online platform, payment system integration, etc. Pursuant to the investment agreement, the Company had contingent redemption right on its investment in Weihui, so the interest held by the Company did not meet the definition of “in-substance common shares” under ASC 323-10-15. As there was no readily determinable fair value for the Company’s investment in Weihui, it was accounted for an investment under the cost method prior to 2017. The carrying amount of the investment in Weihui prior to the acquisition was $29.1 million. In April 2017, the Company entered into a new share purchase agreement and purchased additional 10% equity interest of Weihui for consideration of $12.2 million and obtained control, holding aggregate 55% of Weihui’s equity interest with contingent redemption rights upon the completion of the transaction. In accordance with ASC 805 accounting for step-up acquisition, the Company’s previously held 45% equity interest was re-measured to fair value at the acquisition date, which was valued with the assistance of an independent valuation firm and a re-measurement gain of $6.0 million was recognized. The Company began to consolidate Weihui’s financial statements from April 2017 and the remaining 45% of its common shares without any preference right was recognized as non-controlling interests on the balance sheet. Total identifiable intangible assets acquired upon acquisition mainly included core technology of $15.9 million valued by the excess earnings method, customer relationships of $3.8 million, which have an estimated useful life of five years . Consideration for Weihui was allocated on the acquisition date based on their fair value of the assets acquired and the liabilities assumed as follows: As of acquisition date (In thousands) Consideration $ 12,222 Fair value of previously held 45% equity interest 35,119 Non-controlling interests 24,707 Total 72,048 Cash and cash equivalents 12,078 Other tangible assets 1,602 Identifiable intangible assets acquired 19,748 Liabilities assumed (2,687) Goodwill 41,307 Total $ 72,048 Weiju In July 2017, the Company acquired 60% equity interest of Weiju, which primarily provides online loan facilitation services to the borrowers, with total consideration of $36.4 million, including $5.5 million paid to selling shareholders and $30.9 million paid to Weiju for its newly issued shares. Total consideration was paid by the Company in March 2018. The Company began to consolidate Weiju's financial statements from July 2017 and the remaining 40% equity interest of Weiju was recognized as non-controlling interests on the balance sheet. Total identifiable intangible assets acquired upon acquisition mainly included core technology of $5.3 million, which have an estimated useful life of five years. The Company engaged an independent valuer to assist management in assessing the enterprise value of Weiju and preparing the purchase price allocation as follows: As of acquisition date (In thousands) Consideration $ 36,405 Non-controlling interests 18,405 Total 54,810 Tangible assets 27,423 Identifiable intangible assets acquired 5,278 Liabilities assumed (1,319) Goodwill 23,428 Total $ 54,810 The acquisitions above did not have a material impact on the Company’s consolidated financial statements, and, therefore, pro forma disclosures have not been presented. In 2017 and 2018, no other significant acquisition had material impact on the Company’s consolidated financial statements. No acquisition incurred in 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Leases | 7. Leases The Company entered into operating lease agreements primarily for office premises with initial lease term up to 6.1 years. The determination of whether an arrangement is or contains a lease is made at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Operating lease assets and liabilities are included in operating lease right-of-use assets, net, short-term operating lease liabilities and long-term operating lease liabilities on the Company's consolidated balance sheets. The Company has elected to not recognize lease assets and lease liabilities for leases with a term of twelve months or less on the condensed consolidated balance sheets. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of lease payments over the lease terms at the lease commencement dates. The Company uses its incremental borrowing rate in determining the present value of lease payments. The incremental borrowing rate is a hypothetical rate based on what the Company's interest rate would be if it borrowed from banks in China. Certain lease agreements contain an option for the Company to renew a lease for a term agreed by the Company and the lessor or an option to terminate a lease earlier than the maturity dates. The Company considers these options, which may be elected at the Company's sole discretion, in determining the lease term on a lease-by-lease basis. The Company's lease agreements generally do not contain any residual value guarantees or material restrictive covenants. Certain of the Company's leases contain free or escalating rent payment terms. The Company's lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Company has elected to combine payments for non-lease components with lease payments and accounted them together as a single lease component. Payments under the lease arrangements are primarily fixed. However, for arrangements accounted for as a single lease component, there may be variability in future lease payments as the amount of the non-lease components is typically revised from one period to the next. For amount of the lease components, there were no variable payments in future lease payments. The components of lease cost (excluding the amortization expenses of land use rights) for the year ended December 31, 2019 were as follows: Year ended December 31, 2019 (In thousands) Operating lease cost $ 13,312 Short term lease cost 3,641 Total lease cost $ 16,953 Maturities of lease liabilities under operating leases as of December 31, 2019 As of the end of year (In thousands) 2020 $ 13,101 2021 10,899 2022 2,593 2023 88 Thereafter — Total future lease payments 26,681 Less: imputed interest (1,449) Total lease liabilities $ 25,232 As of December 31, 2019, operating leases recognized in lease liabilities have average remaining lease terms of 2.3 years and weighted-average discount rate of 5%. As of December 31, 2019, the lease that has been entered into contracts but not yet commenced amounted to $0.1 million. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 8. Goodwill and Intangible Assets Goodwill The changes in the carrying value of goodwill by segment are as follows (in thousands): Weibo Fintech Total Balance as of January 1, 2017 $ 10,266 $ — $ 10,266 New acquisitions (Note 6) 2,318 64,735 67,053 Foreign exchange impact 836 3,241 4,077 Balance as of December 31, 2017 $ 13,420 $ 67,976 $ 81,396 New acquisitions (Note 6) 27,152 652 27,804 Impairment provided in 2018 (10,554) — (10,554) Foreign exchange impact (672) (3,734) (4,406) Balance as of December 31, 2018 $ 29,346 $ 64,894 $ 94,240 Foreign exchange impact (357) (790) (1,147) Balance as of December 31, 2019 $ 28,989 $ 64,104 $ 93,093 The Company tests goodwill for impairment at the reporting unit level on an annual basis as of December 31 and between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. As of December 31, 2018 and 2019, the Company’s gross goodwill was $104.8 million and $103.5 million, respectively, and accumulative impairment loss was $10.5 million and $10.4 million, respectively. No new acquisition incurred in 2019. As to Weibo, no impairment provision was made in 2017 and 2019. In 2018, the Company also performed a quantitative analysis on its reporting units considering the fact of under expectation performance and decreased revenue. The Company estimated the fair value by using the income approach or market approach. The income approach considered a number of factors, which included, but were not limited to, expected future cash flows, growth rates, discount rates, and comparable multiples from publicly traded companies in the industry and required the Company to make certain assumptions and estimates regarding industry economic factors and future profitability of the Company’s business. Based on the assessment, the Company provided $10.6 million of impairment charge on goodwill related to Weibo VAS business as of December 31, 2018. For other reporting units, the Company performed a qualitative analysis by taking into consideration the macroeconomics, overall financial performance, industry and market conditions and the share price of the Company, on the goodwill arising from newly acquired businesses, in addition to other entity specific factors. Based on the assessment, the Company determined that it was not necessary to perform a quantitative goodwill impairment test and concluded that no impairment indicators on its goodwill were noted as of December 31, 2017. In 2018, considering the strict government policy in Fintech industry in China and the increasing market competition, the Company performed a quantitative analysis on the reporting unit as of December 31, 2018, with the assistance of an independent third party valuer to determine the fair value of reporting unit and concluded that there was no impairment. In 2019, the performance of Fintech unit was in line with the Company's expectation. Therefore, the Company considered there was no impairment indicator for the year ended December 31, 2019. Intangible assets The following table summarizes the Company’s intangible assets arising from acquisitions and land use rights: As of December 31, 2018 As of December 31, 2019 Accumulated Accumulated Accumulated Accumulated Cost Amortization Impairment Net Cost Amortization Impairment Net (In thousands) (In thousands) Land use rights $ 202,340 $ (2,341) $ — $ 199,999 $ 199,879 $ (6,315) $ — $ 193,564 Technology 44,342 (22,747) (11,598) 9,997 43,936 (24,412) (11,457) 8,067 Supplier-relationship 9,738 (495) — 9,243 9,619 (2,444) — 7,175 Trademark and Domain name 5,623 (147) — 5,476 5,555 (724) — 4,831 Software 1,859 (1,859) — — 1,858 (1,858) — — Others 11,275 (5,998) (4,657) 620 11,139 (5,969) (4,600) 570 Total $ 275,177 $ (33,587) $ (16,255) $ 225,335 $ 271,986 $ (41,722) $ (16,057) $ 214,207 Land use rights represent the land rights acquired for the purpose of constructing offices. In 2018, the Company obtained the land use rights from local authorities with cash consideration, which is being amortized on a straight-line basis over the term of the land use right period, approximately 50 years. Amortization expense related to land use rights for the years ended December 31, 2018 and 2019 was $2.4 million and $4.0 million, respectively. Other intangible assets mainly include technology arising from acquisition, which are amortized over the estimated useful lives ranging from one Amortization expense related to intangible assets for the years ended December 31, 2017, 2018 and 2019 was $4.6 million, $9.1 million and $8.5 million, respectively. In 2018, the Company recognized $12.7 million impairment loss of acquired intangible assets, which is related to Weihui business acquired in April 2017, as a result of the management's assessment that the impairment existed based on the under expectation performance of Weihui and its conclusion that Weihui was unable to provide expected synergies with the Company’s Fintech business. The impaired intangible assets consisted primarily of core technology and customer list. No impairment on acquired intangible assets was recognized for the years ended December 31, 2017 and 2019. As of December 31, 2019, estimated expenses for amortization of intangible assets in future periods were as follows: Year Ended December 31, (In thousands) 2020 $ 8,384 2021 8,344 2022 7,835 2023 6,680 2024 and thereafter 182,434 Total expected amortization expense* $ 213,677 * The table above excludes $0.5 million of indefinite lived intangible assets which was included in the category of Others. |
Funding debts
Funding debts | 12 Months Ended |
Dec. 31, 2019 | |
Funding debts | |
Funding debts | 9. Funding debts The following table summarized the Company’s outstanding funding debts as of December 31, 2019 (in thousands): Less than One One to More than Total Year Two Years Two Years Short-term funding debts $ 173,821 $ 173,821 $ — $ — Long-term funding debt 22,260 — 22,260 — Total $ 196,081 $ 173,821 $ 22,260 $ — The Company finances its on-balance sheet loans using the proceeds from external funding partners mainly including certain Institutional Funding Partners. As of December 31, 2019, the external investors purchased senior tranche securities, bearing the interest from 6.7% to 9.2%. |
Investment in Weibo
Investment in Weibo | 12 Months Ended |
Dec. 31, 2019 | |
Investment in Weibo | |
Investment in Weibo | 10. Investment in Weibo In April 2014, Weibo completed an initial public offering (the "IPO") with the new issuance of 19,320,000 Class A ordinary shares, of which 6,000,000 Class A ordinary shares were allotted to Alibaba Group. Prior to the completion of the IPO, a wholly owned subsidiary of Alibaba Group Holding Limited (“Alibaba”) invested $585.8 million to purchase 30.0 million of preferred shares and 4.8 million of ordinary shares of Weibo, representing an ownership interest of 18% on a fully diluted basis. With the completion of the IPO, all the ordinary shares held by SINA were converted into an equal number of the Class B ordinary shares, all the ordinary shares held by other shareholders were converted into an equal number of the Class A ordinary shares, and all of its outstanding preferred shares were automatically converted into 30,046,154 Class A ordinary shares. Concurrent with the IPO, Alibaba Group further acquired an additional Share Ownership As of December 31, 2019, the share ownership of Weibo was as follows: Ownership Voting Shareholder Name Shares Type Percentage Power* SINA Class B Ordinary shares 45.0 % 71.0 % Alibaba Class A Ordinary shares 30.0 % 15.8 % Others Class A Ordinary shares 25.0 % 13.2 % Total 100.0 % 100.0 % * Class A ordinary shares are entitled to one vote per share and Class B ordinary shares, which the Company holds, are entitled to three votes per share. The Company has been the controlling shareholder of Weibo from inception and has consolidated Weibo’s financial results for the periods presented. |
Non-controlling interests
Non-controlling interests | 12 Months Ended |
Dec. 31, 2019 | |
Non-controlling interests | |
Non-controlling interests | 11. Non-controlling interests The following table summarizes the Company’s non-controlling interests: As of December 31, 2018 2019 (In thousands) Weibo $ 969,803 $ 1,279,707 Others 75,278 (20,275) Total $ 1,045,081 $ 1,259,432 Non-controlling interests related to Weibo mainly represent Weibo’s cumulative results of operations and changes in equity (deficit) attributable to non-controlling shareholders, along with non-controlling shareholders’ original investments for the ordinary and preferred shares issued by Weibo. The increase in non-controlling interests related to Weibo both for 2018 and 2019 mainly resulted from the pick-up of Weibo’s results of operations and changes in equity attributable to non-controlling shareholders (Note 10— Investment in Weibo). |
Other Balance Sheet Components
Other Balance Sheet Components | 12 Months Ended |
Dec. 31, 2019 | |
Other Balance Sheet Components | |
Other Balance Sheet Components | 12. Other Balance Sheet Components As of December 31, 2017 2018 2019 (In thousands) Accounts receivable, net: Accounts receivable $ 555,861 $ 662,296 Allowance for doubtful accounts: Balance at the beginning of year $ (14,068) (20,214) (27,964) Additional provision charged to expenses (8,465) (15,424) (50,313) Write-off 2,319 7,674 17,857 Balance at the end of year $ (20,214) $ (27,964) $ (60,420) $ 527,897 $ 601,876 Prepaid expenses and other current assets: Loans to and interest receivables from investees (Note 13) $ 102,708 $ 332,971 FVO Loan Investment 1 — 121,131 Secured loan to a founder of a related party 2 80,000 80,000 Prepayments to investees 3 89,163 51,008 Rental and other operation deposits 9,842 28,190 Amounts deposited by Weibo users 4 30,631 34,912 Content fees and revenue share 14,769 17,992 Advertising and marketing fees 4,742 5,124 Deductible value added tax 10,304 9,127 Others 20,276 15,433 $ 362,435 $ 695,888 Property and equipment, net: Office building $ 197,337 $ 194,936 Office building related facilities 3,308 3,268 Computers and equipment 217,335 218,446 Leasehold improvements 17,328 18,131 Furniture and fixtures 11,558 11,529 Other 2,996 2,742 449,862 449,052 Less: Accumulated depreciation (187,016) (195,873) $ 262,846 $ 253,179 1 million of one loan investment in a special purpose entity with maturity within one year. The loan investment had a variable interest rate depending on the underlying assets’ performance, and the Company elected to account for the loan investment using fair value option(“FVO Loan Investment”), with subsequent fair value change recorded in fair value changes through earnings on investments, net, from which 2 The Company issued a one-year loan of $100 million to a founder of a related party in August 2016 with an annual interest rate of 5% . $20 million was repaid as of December 31, 2017 and the remaining were extended to August 15, 2018, August 15, 2019 and then August 15, 2020, with an annual interest rate of 7.5% . As of December 31, 2019, the loan was fully secured by an RMB deposits (equivalent to $79.3 million) and mortgaged shares of the related party provided by its founder as of December 31, 2019. 3 4 Other assets: Investment related deposits $ 46,777 $ 33,641 Deferred tax assets 23,213 25,400 Deposits for land use rights 6,321 6,244 Others 4,816 5,800 $ 81,127 $ 71,085 Accrued expenses and other current liabilities: Accrued sales rebates $ 149,371 $ 196,319 Accrued payroll related expenses (including sales commission) 117,562 128,290 Litigation reserve (Note 22) — 125,809 Advertising and marketing expenses 83,893 94,289 Guarantee liabilities (Note 20) 10,952 43,677 Deposit for secured loan 2 43,614 79,274 Turnover tax 44,280 57,764 Amounts due to Weibo users 3 30,631 34,912 Employee reimbursement 8,934 10,165 Professional fee 10,014 18,329 Unpaid consideration for acquisitions and investment 10,055 30,054 Interest payable of Weibo convertible debt and senior notes 1,500 15,344 Others 30,001 52,487 $ 540,807 $ 886,713 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions | |
Related Party Transactions | 13. Related Party Transactions The following sets forth significant related parties and their relationships with the Company: Name of related parties Relationship with the Company Leju and its subsidiaries (“Leju”) An investee of the Company Alibaba and its subsidiaries (“Alibaba”) Strategic partner and significant shareholder of Weibo New Wave MMXV Limited (“New Wave”) An entity controlled by Mr. Charles Chao (a) Service provided to related parties The Company entered into the following transactions with related parties: Year ended December 31, Transactions 2017 2018 2019 (In thousands) Revenues: License revenue from Leju 1 $ 10,435 $ 10,435 $ 10,435 Agency and advertising service earned from Leju 1 16,091 20,754 19,154 Promotion and advertising service to Alibaba 2 91,724 126,882 100,439 Others 3 94,107 160,184 122,993 $ 212,357 $ 318,255 $ 253,021 Other related parties mainly include investee companies over on which the Company has significant influence. These investees are mainly high-tech companies operating in different internet-related industries, such as online advertising agency, short video applications, social and new media marketing services and so on. 1 . Accordingly, the remaining deferred revenue balance as of March 2014 will be amortized prospectively under the straight-line method until 2024. For the years ended December 31, 2017, 2018 and 2019, the Company recorded 2 3 (b) Balances with related parties The Company had the following balances with related parties: As of December 31, 2018 2019 (In thousands) Accounts receivable from related parties: $ 189,522 $ 174,080 -Accounts receivable from Leju $ 4,905 $ 7,124 -Accounts receivable from Alibaba $ 53,480 $ 61,857 -Accounts receivable from other related parties 1 $ 131,137 $ 105,099 Loans to and interest receivables from related parties 2 $ 102,409 $ 320,221 -Company A (an investee in e-commerce business) $ 43,695 $ 160,010 -Company B (an investee providing social and new media marketing services) $ — $ 60,602 -Company C (an investee providing online brokerage services) $ 40,982 $ 40,982 -Others $ 17,732 $ 58,627 Prepayment to related parties $ 13,567 $ — Deferred revenues in relation to License Agreement with Leju $ 54,087 $ 43,652 Account payable to related parties $ 50,678 $ 46,655 Accrued and other liabilities to related parties 1 $ 14,763 $ 39,836 1 2 (c) Shares Issuance to Management On November 6, 2017, the Company entered into a share subscription agreement with New Wave, a holding company that holds ordinary shares on behalf of its senior management and controlled by Mr. Charles Chao, Chairman and chief executive officer (“CEO”) of the Company, which held 7,944,386 ordinary shares of the Company then. Pursuant to the agreement, the Company issued to New Wave 7,150 newly created class A preference shares with 10,000 votes per share initially (the "Class A Preference Shares"), at par value of $1.00 per share. Immediately following the share issuance, New Wave's aggregate voting power in the Company increased from approximately 11.1% to approximately 55.5%. The Class A Preference Shares have no economic rights and no participant rights to any dividend, and as a result, the Company concluded that the transfer of economic benefits from the Company or shareholders to New Wave and the fair value of these Class A Preferred Shares was immaterial. See Note 18 to Consolidated Financial statements (d) Other transactions with related parties Transactions with related parties included in cost and operating expenses represented 4.4%, 4.1%, and 4.6% of total cost and operating expenses for 2017, 2018 and 2019, respectively. The Company believes that the terms of the agreements with the related parties are comparable to the terms of market rate transactions with third-party customers and vendors. Other than the transactions disclosed above or elsewhere in the consolidated financial statements, the Company had no material loan and interest income or expense with related parties for the years ended December 31, 2017, 2018 and 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | 14. Income Taxes The Company is registered in the Cayman Islands and has operations in four tax jurisdictions — the PRC, the U.S., Hong Kong and Taiwan. The operations in Taiwan represent a branch office of the subsidiary in the U.S. For operations in the U.S., Hong Kong and Taiwan, the Company has incurred net accumulated operating losses for income tax purposes. The Company believes that it is more likely than not that these net accumulated operating losses will not be utilized in the future. Therefore, the Company has provided full valuation allowance for the deferred tax assets arising from the losses at these locations as of December 31, 2018 and 2019. The components of income before income taxes are as follows: Year Ended December 31, 2017 2018 2019 (In thousands, except percentage) Income before income tax expense $ 424,239 $ 555,410 $ 255,192 Loss from non-China operations $ (79,945) $ (143,680) $ (508,580) Income from China operations $ 504,184 $ 699,090 $ 763,772 Income tax expense applicable to China operations $ 73,165 $ 129,406 $ 146,283 Effective tax rate for China operations 15 % 19 % 19 % The Company has recorded income tax provisions from its PRC operations for the years ended December 31, 2017, 2018 and 2019. The loss from non-China operation mainly resulted from the disposal/dilution gain (loss) or impairment loss related to overseas investments, stock-based compensation and fair value change in option liability, etc. In 2017, the Company’s non-China operations recorded (i) a gain of $92.3 million related to disposal of its investment in Alibaba, offset by (ii) impairment of $113.1 million provided in Leju investment and (iii) stock based compensation expenses recognized in the financial statements. In 2018, the Company’s non-China operations recorded (i) an aggregated loss of $66.3 million in fair value change on overseas investments and (ii) stock based compensation expenses recognized in the financial statements. In 2019, the Company’s non-China operations recorded (i) an aggregated loss of $34.9 million in fair value change on overseas investments, (ii) impairment of $234.0 million provided on certain investments, (iii) a $125.8 million NAI litigation reserve and (iv) stock based compensation expenses recognized in the financial statements. Cayman Islands Under the current tax laws of Cayman Islands, the Company is not subject to tax on income or capital gain. In addition, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. As such, the significant income from the disposition gain of Alibaba and certain private foreign entity’s shares are not subject to tax. U.S. As of December 31, 2019, the Company’s subsidiary in the U.S. had approximately $85.0 million of federal and $8.3 million of state net operating loss carryforwards available to offset future taxable income. The federal net operating loss carryforwards will expire, if unused, in the years ending June 30, 2020 through December 31, 2039, and the state net operating loss carryforwards will expire, if unused, in the years ending December 31, 2028 through December 31, 2039. Included in the net operating loss carryforwards were $40.4 million and $4.2 million of federal and state net operating loss carryforwards relating to employee stock options, the benefit of which will be credited to equity when realized. The Tax Reform Act of 1986 limits the use of net operating loss and tax credit carryforwards in certain situations when changes occur in the stock ownership of a company. In the event the Company has a change in ownership, utilization of carryforwards could be restricted. The deferred tax assets for the U.S. subsidiary as of December 31, 2019 consisted mainly of net operating loss carryforwards, for which a full valuation allowance has been provided, as management believes it is more likely than not that these assets will not be realized in the future. The following table sets forth the significant components of the net deferred tax assets for operation in the U.S.: As of December 31, 2018 2019 (In thousands) Deferred tax assets: Net operating loss carry-forwards $ 30,484 $ 29,226 Other tax credits, allowances for doubtful accounts, accruals and other liabilities 539 514 Total deferred tax assets 31,023 29,740 Less: valuation allowance (31,023) (29,740) Deferred tax assets, net $ — $ — Hong Kong As of December 31, 2019, the Company’s Hong Kong subsidiaries had approximately $48.9 million of net operating loss carryforwards which can be carried forward indefinitely to offset future taxable income. As of December 31, 2019, the deferred tax assets for the Hong Kong subsidiary, consist mainly of net operating loss carryforwards, for which a full valuation allowance has been provided. Management believes it is more likely than not that these assets will not be realized in the future. The following table sets forth the significant components of the net deferred tax assets for Hong Kong operation: As of December 31, 2018 2019 (In thousands) Deferred tax assets: Net operating loss carry-forwards $ 6,023 $ 8,070 Less: valuation allowance (6,023) (8,070) Deferred tax assets $ — $ — China Effective January 1, 2008, the Enterprise Income Tax Law (the “EIT Law”) in China unifies the enterprise income tax rate for the entities incorporated in China at 25% if they are not eligible for any preferential tax On February 22, 2008, relevant governmental regulatory authorities released qualification criteria, application procedures and assessment processes for “software enterprise”, which were updated in April 2013. An entity qualified as a software enterprise, may enjoy an income tax exemption for two years beginning with its first profit making year and a reduced tax at a rate of 12.5% for the subsequent three years. Weibo Technology, qualified as software enterprises, started to enjoy the relevant tax holiday from its first accumulative profitable year in 2015 and has been subject to a reduced enterprise income tax rate of 12.5% since 2017. In late 2018 and 2019, Weibo Technology was approved to be qualified as a “key software enterprise” for 2017 and 2018, respectively. Thus, Weibo Technology was entitled to enjoy a further reduced preferential tax rate of 10% for 2017 in 2018, and 2018 in 2019. Weibo Technology used the tax credit of its “key software enterprise” status and recognized $10.8 million of tax credit related to 2017 in 2018, and $13.0 million of tax credit related to 2018 in 2019. The qualification as a "key software enterprise" is subject to annual evaluation and approval by the relevant authorities in China and the Company will only recognize the preferential tax treatment of "key software enterprise" status when approval from the relevant authorities is obtained. The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC should be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” Based on a review of surrounding facts and circumstances, the Company does not believe that it is likely that its operations outside of the PRC should be considered a resident enterprise for PRC tax purposes. However, due to limited guidance and implementation history of the EIT Law, should SINA be treated as a resident enterprise for PRC tax purposes, the Company has to accrue PRC tax on worldwide income at a uniform tax rate of 25% retroactive to January 1, 2008. The EIT Law also imposes a withholding income tax of 10% on dividends distributed by an FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. Such withholding income tax was exempted under the Previous EIT Law. The Cayman Islands, where the Company is incorporated, does not have such tax treaty with China. According to the arrangement between Mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by an FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% (if the foreign investor owns directly at least 25% of the shares of the FIE). The State Administration of Taxation further promulgated Circular 601 on October 27, 2009, which provides that tax treaty benefits will be denied to “conduit” or shell companies without business substance and that a beneficial ownership analysis will be used based on a “substance-over-form” principle to determine whether or not to grant the tax treaty benefits. A majority of the Company’s FIEs’ operations in China are invested and held by Hong Kong registered entities. If the Company is regarded as a non-resident enterprise and its Hong Kong subsidiaries are regarded as resident enterprises, then the Hong Kong subsidiaries may be required to pay a 10% withholding tax on any dividends payable to us. If the Hong Kong entities are regarded as non-resident enterprises, then the Company’s PRC subsidiaries may be required to pay a 5% withholding tax for any dividends payable to our Hong Kong subsidiaries. However, it is still unclear at this stage whether Circular 601 applies to dividends from the Company’s PRC subsidiaries paid to our Hong Kong subsidiaries and if our Hong Kong subsidiaries were not considered as “beneficial owners” of any dividends from their PRC subsidiaries, the dividends payable to our Hong Kong subsidiaries would be subject to withholding tax at a rate of 10% . In accordance with accounting guidance, all undistributed earnings are presumed to be transferred to the parent company and are subject to the withholding taxes. Based on the subsequently issued interpretation of the EIT, Article 4 of Cai Shui (2008) Circular No. 1, dividends on earnings prior to 2008 but distributed after 2008 are not subject to withholding income tax. The Company decided that its foreign invested enterprises will not distribute PRC earnings made since 2008 beyond to their immediate foreign holding companies and will maintain such cash onshore to reinvest in its PRC operations. As of December 31, 2017 and 2018, the Company did not record any withholding tax on the retained earnings of its FIEs in the PRC as the Company intends to reinvest all earnings in China since 2008 to further expand its business in China, and its FIEs do not intend to declare dividends on the retained earnings made since 2008 to their immediate foreign holding companies. The Company’s VIEs are wholly owned by the Company’s employees and controlled by the Company through various contractual agreements. To the extent that these VIEs have undistributed earnings, the Company accrued appropriate expected tax associated with repatriation of such undistributed earnings. The Company did not recognize any amount of unrecognized tax benefits and related interest and penalties in its financial statement during the presented periods in accordance with ASC740-10. Included in the long-term liabilities as of December 31, 2018 and 2019, there was both approximately $0.6 million unrecognized tax liability, respectively, arising from transferring pricing arrangements between subsidiaries and VIEs in previous periods, which is immaterial to the consolidated financial statements for all periods presented. The Company also did not expect any significant increase or decrease in this unrecognized tax liability within 12 months following the reporting date. In general, the PRC tax authorities have up to five years to review a company’s tax filings. Accordingly, tax filings of the Company’s PRC subsidiaries and VIEs for tax years 2015 through 2019 remain subject to the review by the relevant PRC tax authorities. In the case of a transferring pricing related adjustment, the statute of limitation is ten years , which indicates that such arrangement will open for examination by PRC tax authorities. In December 2009, the State Administration of Tax (“SAT”) in China issued a circular on strengthening the management of proceeds from equity transfers by non-China tax resident enterprises and requires foreign entities to report indirect sales of China tax resident enterprises. If the existence of the overseas intermediary holding company is disregarded due to lack of reasonable business purpose or substance, gains on such sale are subject to PRC withholding tax. In February 2015, SAT issued the Circular on Several Issues Related to Enterprise Income Tax for Indirect Asset Transfer by Non-PRC Resident Enterprises , or SAT Circular 7, if a non-resident enterprise transfers the equity interests of or similar rights or interests in overseas companies which directly or indirectly own PRC taxable assets through an arrangement without a reasonable commercial purpose, but rather to avoid PRC corporate income tax, the transaction will be re-characterized and treated as a direct transfer of PRC taxable assets subject to PRC corporate income tax. SAT Circular 7 specifies certain factors that should be considered in determining whether an indirect transfer has a reasonable commercial purpose. However, as SAT Circular 7 is newly issued, there is uncertainty as to the application of SAT Circular 7 and the interpretation of the term “reasonable commercial purpose.” SAT Circular 7 became effective on February 2015, but it also applies to indirect transfers which occurred before its issuance but have not received assessment from the tax authorities. Although the Company believes that it is more likely than not all the transactions made by the Company during all the presented periods would be determined to have reasonable commercial purpose, should this not be the case, the Company would be subject to a significant withholding tax that could materially and adversely impact its financial position, results of operations and cash flows. Composition of income tax expenses for China operations The following table sets forth current and deferred portion of income tax expenses of the Company’s China subsidiaries and VIEs: Year Ended December 31, 2017 2018 2019 (In thousands) Current tax provision $ 76,379 $ 95,846 $ 99,481 Deferred tax (benefits) provision (3,214) 33,560 46,802 Income tax expense $ 73,165 $ 129,406 $ 146,283 The deferred tax provision in 2018 mainly consisted of $40.8 million deferred tax provision for those gains recognized from fair value changes on investments with the adoption of the new guidance on accounting for investment in equity securities starting from 2018, and deferred tax benefits in relation to the increase in deferred tax assets. The deferred tax provision in 2019 mainly consisted of $49.9 million deferred tax provision for those gains recognized from fair value changes on investments. Reconciliation of the differences between statutory tax rate and the effective tax rate for China operations The following table sets forth reconciliation between the statutory EIT rate and the effective tax rate for China operations: Year Ended December 31, 2017 2018 2019 Statutory EIT rate 25 % 25 % 25 % Effect on tax holiday and preferential tax rate 1 (11) % (11) % (13) % Permanent differences (1) % 1 % 2 % Change in valuation allowance 2 % 4 % 5 % Effective tax rate for China operations 15 % 19 % 19 % 1 The provisions for income taxes for the years ended December 31, 2017, 2018 and 2019 differ from the amounts computed by applying the EIT primarily due to the tax holidays and the preferential tax rate enjoyed by certain of the Company’s entities in the PRC. The increase in effective tax rate for China operations in 2018 as compared to 2017 was mainly due to higher impact from the change of valuation allowance and permanent differences, which was offset in part by the preferential tax rate effect of Weibo Technology’s key software enterprise qualification obtained in 2018. The effective tax rate for China operations in 2019 is flat compared to 2018. The following table sets forth the effect of tax holiday related to China operations: Year Ended December 31, 2017 2018 2019 (In thousands, except per share amount) Tax holiday effect $ 56,377 $ 76,246 $ 100,616 Basic net income per share effect $ 0.79 $ 1.08 $ 1.44 Diluted net income per share effect $ 0.76 $ 1.05 $ 1.44 The following table sets forth the significant components of deferred tax assets and liabilities for China operations: As of December 31, 2018 2019 (In thousands) Deferred tax assets: Allowances for doubtful accounts $ 24,267 $ 35,202 Net operating loss carry forwards 31,016 44,970 Investment impairment 32,797 44,397 Accruals and others 22,212 26,261 Total deferred tax assets 110,292 150,830 Less: valuation allowance (87,079) (125,430) Net deferred tax assets $ 23,213 $ 25,400 Deferred tax liabilities: Depreciation $ (821) $ (1,102) Investment gain (40,781) (88,113) Acquired intangible assets (3,213) (2,430) Others (6,278) (6,482) Total deferred tax liabilities $ (51,093) $ (98,127) A valuation allowance is provided against deferred tax assets when the Company determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Company considered factors including (i) future reversals of existing taxable temporary differences; (ii) future taxable income exclusive of reversing temporary differences and carry-forwards; and (iii) tax planning strategies. Historically, deferred tax assets were valued using the previous statutory rate of 25% or applicable preferential rates. As of December 31, 2018 and 2019, the Company provided a full valuation allowance of the deferred tax assets for China operations mainly related to the allowance for doubtful accounts. Given that the Company has been unsuccessful in getting approval from the relevant tax authorities for the deduction of the tax allowance on bad debt in recent years, the Company believes it is more likely than not that these deferred tax assets will not be utilized. As of December 31, 2018 and 2019, the Company had net operating loss carry forwards for China operations totaling $149.9 million and $212.6 million to offset against future net profit for income tax purposes, resulting in $31.0 million and $45.0 million deferred tax assets. The Company anticipates that it is more likely than not that these net operating losses may not be fully utilized based on its estimate of the operation performance of these PRC entities; therefore, deferred tax assets generated from net operating losses were offset by a valuation allowance of $29.8 million and $45.0 million, respectively. The deferred tax liabilities arising from investments was related to the deferred tax provision on the fair value changes of investments since the adoption of new investment guidance starting from 2018. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Net Income (Loss) Per Share | |
Net Income (Loss) Per Share | 15. Net Income (Loss) Per Share Basic net income (loss) per share is computed using the weighted average number of the ordinary shares outstanding during the period. Restricted share units are not considered outstanding in the computation of basic earnings (loss) per share . Diluted earnings (loss) per share is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period. The computation of diluted earnings (loss) per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net income (loss) per share. In calculating the Company’s consolidated basic and diluted EPS, the numerator include SINA’s share of income (loss) from Weibo based on Weibo’s basic and diluted EPS, respectively, multiplied by the number of Weibo shares held by SINA. In 2017, 2018 and 2019, the effect on consolidated net income per share of dilutive shares from Weibo was $3.6 million, $3.3 million and $1.0 million, respectively. The Company also believes that it is not necessary to make any allocation to the preferred shareholders when applying the two class method of calculating EPS in accordance with ASC 260, because the preferred shares are not participant securities (Note 18). The following table sets forth the computation of basic and diluted net income per share for the periods indicated: Year Ended December 31, 2017 2018 2019 (In thousands, except per share amounts) Basic net income (loss) per share calculation: Numerator: Net income (loss) attributable to SINA’s ordinary shareholders $ 156,569 $ 125,562 $ (70,542) Denominator: Weighted average ordinary shares outstanding 71,284 70,296 69,640 Basic net income (loss) per share $ 2.20 $ 1.79 $ (1.01) Diluted net income (loss) per share calculation: Numerator: Net income (loss) attributable to SINA’s ordinary shareholders $ 156,569 $ 125,562 $ (70,542) Less: Effect on consolidated net income per share of dilutive shares of the Company’s equity interests 3,915 3,699 956 Add: Effect on interest expenses and amortized issuance cost of convertible debt 1,531 1,403 — Net income (loss) attributable for calculating diluted net income per share 154,185 123,266 (71,498) Denominator: Weighted average ordinary shares outstanding 71,284 70,296 69,640 Weighted average ordinary shares equivalents: Effects of dilutive securities Stock options 94 87 — Unvested restricted share units 1,172 683 — Convertible debt 1,381 1,309 — Shares used in computing diluted net income (loss) per share attributable to SINA 73,931 72,375 69,640 Diluted net income (loss) per share $ 2.09 $ 1.70 $ (1.03) |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Plans | |
Employee Benefit Plans | 16. Employee Benefit Plans China Contribution Plan The Company’s subsidiaries and VIEs in China participate in a government-mandated, multi-employer, defined contribution plan, pursuant to which certain retirement, medical, housing and other welfare benefits are provided to employees. Chinese labor laws require the Company’s subsidiaries to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly basic compensation of qualified employees. The local labor bureau is responsible for meeting all retirement benefit obligations; the Company has no further commitments beyond its monthly contribution. For the years ended December 31, 2017, 2018 and 2019, the Company contributed a total of $69.9 million, $93.8 million and $88.5 million to the government funds, respectively. 401(k) Savings Plan The Company’s U.S. subsidiary has a savings plan that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”). Under the 401(k) Plan, participating employees may defer 100% of their eligible pretax earnings up to the Internal Revenue Service’s annual contribution limit. All employees on the U.S. payroll of the Company age 21 years or older are eligible to participate in the 401(k) Plan. The Company has not been required to contribute to the 401(k) Plan. |
Profit Appropriation
Profit Appropriation | 12 Months Ended |
Dec. 31, 2019 | |
Profit Appropriation | |
Profit Appropriation | 17. Profit Appropriation Relevant PRC laws and regulations permit PRC companies to pay dividends only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The Company’s subsidiaries and VIEs in China are required to make appropriations to certain non-distributable reserve funds. In accordance with the laws applicable to China’s Foreign-Invested Enterprises (“FIEs”), its subsidiaries have to make appropriations from its after-tax profit (as determined under Generally Accepted Accounting Principles in the PRC (“PRC GAAP”)) to non-distributable reserve funds including the (i) general reserve fund, (ii) enterprise expansion fund and (iii) staff bonus and welfare fund. General reserve fund is at least 10% of the after-tax profits calculated in accordance with the PRC GAAP. Appropriation is not required if the reserve fund has reached 50% of the registered capital of the respective company. The appropriation of the other two reserve funds is at the Company’s discretion. At the same time, the Company’s VIEs, in accordance with the China Company Laws, must make appropriations from its after-tax profit (as determined under the PRC GAAP) to non-distributable reserve funds including (i) statutory surplus fund and (ii) discretionary surplus fund. Statutory surplus fund is at least 10% of the after-tax profits calculated in accordance with the PRC GAAP. Appropriation is not required if the reserve fund has reached 50% of the registered capital of the respective company. General reserve fund and statutory surplus fund are restricted for setting off against losses, expansion of production and operation or increase in register capital of the respective company. As a result of these PRC laws and regulations, the general reserve, statutory surplus and registered capital of PRC subsidiaries and VIEs are restricted in terms of being transferred to the Company either in the form of dividends, loans or advances. The balance of restricted net assets was |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Shareholders' Equity | |
Shareholders' Equity | 18. Shareholders’ Equity Stockholder Rights Plan In 2005, the Company adopted a Rights Plan (the "2005 Rights Plan") to protect the best interests of all shareholders. The 2005 Rights Plan expired on February 22, 2015. In order to continue to protect the best interests of shareholders, the Company’s board of directors approved a continuation of the 2005 Rights Plan (the "2015 Rights Plan") in April 2015. In general, the 2015 Rights Plan has substantially the same terms as the 2005 Rights Plan. Pursuant to the 2015 Rights Plan, stockholders of SINA have rights to purchase ordinary shares of the Company at a substantial discount from those securities’ fair market value upon a person or group acquiring, without the approval of the Board of Directors, more than In addition, the Company’s Board of Directors has the authority, without further action by its shareholders, to issue up to 3,750,000 preference shares in one or more series and to fix the powers and rights of these shares, including dividend rights, conversion rights, voting rights, terms of redemption and liquidation preferences, any or all of which may be greater than the rights associated with its ordinary shares. Preference shares could thus be issued quickly with terms calculated to delay or prevent a change in control or make removal of management more difficult. Similarly, the Board of Directors may approve the issuance of debentures convertible into voting shares, which may limit the ability of others to acquire control of the Company. Shares Issuance to Management Preferred Shares On November 6, 2017, the Company entered into the Share Subscription Agreement with New Wave, which held The following is a summary of the key terms of the Class A Preference Shares: ● The Class A Preference Shares have no economic rights nor any right to any dividend or other distribution by the Company. ● The Class A Preference Shares are entitled to vote on all matters submitted to a general meeting of the Company. When New Wave sells or otherwise transfers any number of Ordinary Shares held by it to a third party which is not an affiliate of New Wave, the number of votes that each Class A Preference Share is entitled to will be reduced proportionally. ● On any resolution to elect a director where the nominee is an executive officer of the Company, the votes attaching to the Class A Preference Shares on such resolution shall not be counted if a majority of the votes cast by the holders of the Company’s ordinary shares is against the appointment of such nominee. ● For all matters that are required to be subject to shareholder approval under Rule 5635 of the Nasdaq Stock Market Rules, New Wave shall vote the Class A Preference Shares in accordance with the Board’s recommendation to the extent the board determines to submit any such matter to shareholder approval. ● If New Wave transfers the Class A Preference Shares to a third party which is not an affiliate of New Wave, or when New Wave ceases to be controlled by any person holding executive office in the Company, the Class A Preference Shares shall cease to have any voting right. The Class A Preference Shares have no economic rights and no participant rights to any dividend, and as a result, the Company concluded that the transfer of economic benefits from the Company or shareholders to New Wave and the fair value of these Class A Preferred Shares was immaterial. In-kind Distribution On May 26, 2017, the Company announced its planned distribution of shares of Weibo to SINA’s shareholders as of the record date of June 7, 2017 on a pro rata basis, or one Weibo Share for each ten outstanding SINA ordinary shares. As of distribution date of July 10, 2017, the Company has distributed 7,142,148 Class A ordinary shares of Weibo, based on 71,421,480 ordinary shares of SINA outstanding as of the record date. The distribution resulted in a decrease of $554.0 million in retained earnings, which was equal to the fair value of Weibo shares distributed and also led an increase of $31.7 million in the non-controlling interests related to Weibo, which represented the change in the underlying net assets related to the equity interest held by the Company in Weibo as of the declaration date. The remaining difference has been reflected as an increase in additional paid-in capital in 2017. As of December 31, 2019, the Company held 45.0% economic interest and 71.0% voting interest in Weibo. 2015 Share Incentive Plan On June 29, 2007, the Company adopted the 2007 Share Incentive Plan (the “2007 Plan”), which plan was amended and restated on August 2, 2010 (the “Amended and Restated 2007 Plan”). The Amended and Restated 2007 Plan permits the granting of share options, share appreciation rights, restricted share units and restricted shares. The Amended and Restated 2007 Plan terminated on August 1, 2015. Under the 2007 Plan, a total of 10,000,000 ordinary shares of the Company are available for issuance. As of December 31, 2019, there were 155,000 options and nil restricted share units outstanding under the Amended and Restated 2007 Plan. In July, 2015, the Company adopted the 2015 Share Incentive Plan (the “2015 Plan”), which permits the granting of share options, share appreciation rights, restricted share units and restricted shares. Under the 2015 Plan, a total of 6,000,000 ordinary shares of the Company is available for issuance. The maximum number of ordinary shares available for issuance will be reduced by one share for every one share issued pursuant to a share option or share appreciation right and by 1.75 share for every one share issued as restricted shares or pursuant to a restricted shares unit. The maximum number of ordinary shares that may be granted subject to awards under the 2015 Plan during any given fiscal year will be limited to 3% of the total outstanding shares of the Company as of the end of the immediately preceding fiscal year, plus any shares remaining available under the share pool for the immediately preceding fiscal year. Share options and share appreciation rights must be granted with an exercise price of at least 110% of the fair market value on the date of grant. Upon adoption, the 2015 Plan replaced the existing 2007 Plan and, as a result, no additional awards could be granted under the 2007 Plan. As of December 31, 2019, there were nil options and 1,563,000 restricted share units outstanding under the 2015 Plan. 2019 Share Incentive Plan In May 2019, the Company adopted the 2019 share incentive plan, or the 2019 Plan. The aggregate number of shares reserved for awards under the 2019 Plan is 3,477,643 ordinary shares. The aggregate maximum number of shares that may be granted in connection with all awards under the 2019 Plan during any fiscal year shall not exceed 3% of the total outstanding shares of the Company as of the last day of the immediately preceding fiscal year, plus any shares remaining available under the share pool for the immediately preceding fiscal year, subject to adjustment. The aggregate maximum number of shares that may be granted in connection with incentive stock options under the 2019 Plan is 3,477,643 ordinary shares. The 2019 Plan permits the grant of four types of awards: options (which may be incentive share options or non-statutory share options), share appreciation rights, share grants and restricted share units. As of December 31, 2019, there were nil options and 547,000 restricted share units outstanding under the 2019 Plan. Stock-Based Compensation The following table sets stock-based compensation included in each of the accounts, including amount arising from Weibo’s incentive plan: Year Ended December 31, 2017 2018 2019 (In thousands) Costs of revenues $ 9,257 $ 10,128 $ 11,859 Sales and marketing 20,790 21,942 24,499 Product development 29,163 30,830 38,991 General and administrative 32,177 32,169 46,522 $ 91,387 $ 95,069 $ 121,871 The following table sets forth the summary of number of shares available for issuance: Shares Available (In thousands) January 1, 2017 3,346 Granted* (673) Cancelled/forfeited 320 Expired (85) December 31, 2017 2,908 Granted* (2,456) Cancelled/forfeited 128 Expired (13) December 31, 2018 567 Authorized 3,478 Granted* (1,354) Cancelled/forfeited 261 Expired — December 31, 2019 2,952 * In 2017, 2018 and 2019, 385,000, 1,404,000 and 1,019,000 restricted shares units, or 673,000, 2,456,000 and 1,354,000 equivalent option shares, respectively, were granted. Stock Option No options were granted during the presented periods under 2015 Incentive Plan. The following table sets forth the summary of option activities under the Company’ stock option program: Weighted Average Options Weighted Average Remaining Aggregate Outstanding Exercise Price Contractual Life Intrinsic Value (In thousands) (In years) (In thousands) January 1, 2017 234 $ 38.41 3.63 $ 5,226 Exercised (26) $ 35.69 Cancelled/expired/forfeited (18) $ 37.61 December 31, 2017 190 $ 38.86 2.56 $ 11,693 Exercised (34) $ 43.85 Cancelled/expired/forfeited (1) $ 35.69 December 31, 2018 155 $ 37.75 1.93 $ 2,467 Exercised — $ 35.69 Cancelled/expired/forfeited — $ — December 31, 2019 155 $ 37.75 0.93 $ 338 Vested and expected to vest as of December 31, 2018 155 $ 37.75 1.93 $ 2,467 Exercisable as of December 31, 2018 153 $ 37.77 1.93 $ 2,435 Vested and expected to vest as of December 31, 2019 155 $ 37.75 0.93 $ 338 Exercisable as of December 31, 2019 155 $ 37.75 0.93 $ 338 The total intrinsic value of options exercised during 2017, 2018 and 2019 was $1.6 million, $1.5 million and nil, respectively. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the shares. Cash received from the exercises of stock option of the Company during 2017, 2018 and 2019 was $0.9 million, $1.5 million and nil. As reported by the NASDAQ Global Selected Market, the Company’s ending stock price as of December 31, 2018 and 2019 was $53.64 and $39.93, respectively. As of December 31, 2018 and 2019, there was $0.02 million and nil of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock options granted to the Company’s employees and directors, respectively. Total unrecognized compensation cost may be adjusted for future changes in estimated forfeitures. Information regarding the stock options outstanding as of December 31, 2018 and 2019 are summarized below: Weighted Weighted Weighted Average Options Average Options Average Remaining Range of Exercise Prices Outstanding Exercise Price Exercisable Exercise Price Contractual Life (In thousands) (In thousands) (In years) As of December 31, 2018 $35.69 - $35.69 31 $ 35.69 29 $ 35.69 2.04 $38.27 - $38.27 124 $ 38.27 124 $ 38.27 1.90 155 $ 37.75 153 $ 37.77 1.93 As of December 31, 2019 $35.69 - $35.69 31 $ 35.69 31 $ 35.69 1.04 $38.27 - $38.27 124 $ 38.27 124 $ 38.27 0.90 155 $ 37.75 155 $ 37.75 0.93 Restricted Share Units Summary of Service-Based Restricted Share Units The following table sets forth the summary of service-based restricted share unit (“RSU”) activities: Weighted-Average Grant Date Shares Granted Fair Value (In thousands) January 1, 2017 2,405 $ 45.47 Awarded* 365 $ 75.05 Vested (905) $ 45.45 Cancelled/forfeited (165) $ 44.57 December 31, 2017 1,700 $ 51.92 Awarded* 1,383 $ 77.67 Vested (874) $ 48.44 Cancelled/forfeited (64) $ 57.78 December 31, 2018 2,145 $ 69.76 Awarded* 999 $ 46.61 Vested (900) $ 63.56 Cancelled/forfeited (145) $ 72.33 December 31, 2019 2,099 $ 61.23 * 20,000, 25,000 and 25,000 RSUs were granted to non-employee directors in 2017, 2018 and 2019, respectively. As of December 31, 2018 and 2019, there was $118.2 million and $106.3 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested, service-based RSUs granted to the Company’s employees and non-employee directors, which is expected to be recognized over a weighted-average period of 3.0 years and 2.9 years respectively. The total fair value based on the respective vesting dates of the restricted share units vested was $92.2 million, $69.7 million and $41.6 million during the years ended December 31, 2017, 2018 and 2019, respectively. The following table sets forth a summary of performance-based RSU activities for the years ended December 31, 2017, 2018 and 2019: Weighted-Average Grant Date Shares Granted Fair Value (In thousands) January 1, 2017 18 $ 47.47 Awarded 19 $ 65.18 Vested (15) $ 47.47 Cancelled/forfeited (8) $ 58.51 December 31, 2017 14 $ 65.18 Awarded 21 $ 102.88 Vested (12) $ 65.18 Cancelled/forfeited (11) $ 98.10 December 31, 2018 12 $ 101.86 Awarded 21 $ 67.35 Vested (7) $ 102.69 Cancelled/forfeited (15) $ 78.72 December 31, 2019 11 $ 67.35 As of December 31, 2017, 2018 and 2019, all performance-based restricted shares granted but not cancelled had been fully vested. Weibo’s Stock-Based Compensation In August 2010, the Company’s subsidiary Weibo Corporation adopted the 2010 Share Incentive Plan (the “2010 Weibo Incentive Plan”), which has a term of ten years and permits the granting of options, share appreciation rights, restricted share units and restricted shares of Weibo to employees, directors and consultants of Weibo and its affiliates. Under the plan, a total of 35 million ordinary shares were initially reserved for issuance. The maximum number of ordinary shares available for issuance is reduced by one share for every one share issued pursuant to a share option or share appreciation right and by 1.75 share for every one share issued as restricted share or pursuant to a restricted share unit. In March 2014, the 2010 Plan was terminated and all remaining shares were forwarded to the 2014 Plan. In March 2014, the Company adopted the 2014 Share Incentive Plan (the “2014 Plan”), which included the remaining 4.6 million shares from the 2010 Plan plus an additional 1.0 million shares. On January 1, 2015, shares in the 2014 Plan, which has a term life of ten years, were allowed a one-time increase in the amount equal to 10% of the total number of Weibo shares issued and outstanding on a fully-diluted basis as of December 31, 2014. Each share in the 2014 Plan pool allows for a grant of a restricted share unit or option share. The Company intends to use such share incentive plan to attract and retain employee talent. Stock based compensation related to the grants were amortized generally over four years on a straight-line basis (generally one year for performance-based restricted shares) with $48.0 million, $41.0 million and $61.3 million expensed for the years ended December 31, 2017, 2018 and 2019, respectively. The following table sets forth the stock-based compensation included in each of the relevant accounts arising from Weibo’s incentive plan: Year Ended December 31, 2017 2018 2019 (In thousands) Cost of revenues $ 3,716 $ 3,522 $ 5,251 Sales and marketing 8,264 6,837 9,828 Product development 21,879 21,187 28,628 General and administrative 14,178 9,465 17,582 $ 48,037 $ 41,011 $ 61,289 The following table sets forth a summary of the number of shares available for issuance under Weibo’s incentive plan: Shares Available (In thousands) January 1, 2017 18,878 Granted (736) Cancelled/expired/forfeited 398 December 31, 2017 18,540 Granted (1,597) Cancelled/expired/forfeited 350 December 31, 2018 17,293 Granted (2,411) Cancelled/expired/forfeited 222 December 31, 2019 15,104 The following table sets forth a summary of option activities under Weibo’ stock option program: Weighted Average Options Weighted Average Remaining Aggregate Outstanding Exercise Price Contractual Life Intrinsic Value (In thousands) (In years) (In thousands) January 1, 2017 2,587 $ 1.41 1.6 $ 101,403 Exercise (2,122) $ 1.04 Cancelled/expired/forfeited (28) $ 0.68 December 31, 2017 437 $ 3.24 2.0 $ 43,800 Exercise (248) $ 3.14 Cancelled/expired/forfeited (5) $ 1.16 December 31, 2018 184 $ 3.45 1.5 $ 10,089 Exercise (95) $ 3.41 Cancelled/expired/forfeited — $ — December 31, 2019 89 $ 3.49 0.7 $ 3,799 Vested and expected to vest as of December 31, 2018 184 $ 3.45 1.5 $ 10,089 Exercisable as of December 31, 2018 184 $ 3.45 1.5 $ 10,089 Vested and expected to vest as of December 31, 2019 89 $ 3.49 0.7 $ 3,799 Exercisable as of December 31, 2019 89 $ 3.49 0.7 $ 3,799 No options were granted in the years ended December 31, 2017, 2018 and 2019. The total intrinsic value of options exercised for the years ended December 31, 2017, 2018 and 2019 was $135.2 million, $25.6 million and $4.2 million, respectively. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the shares. Cash received from the exercises of stock option for Weibo during the years ended December 31, 2017, 2018 and 2019 was $2.3 million, $0.8 million and $0.3 million, respectively. As reported by the NASDAQ Global Selected Market, the Company’s ending stock price as of December 31, 2018 and 2019 was $58.43 and $46.35, respectively. All unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock options granted to Weibo’s employees and directors has been fully amortized in 2017. Information regarding stock options of Weibo outstanding is summarized below: Weighted Weighted Weighted Average Options Average Options Average Remaining Range of Exercise Prices Outstanding Exercise Price Exercisable Exercise Price Contractual Life (In thousands) (In thousands) (In years) As of December 31, 2018 $ 3.25 - $3.36 32 $ 3.30 32 $ 3.30 0.8 $ 3.43 - $3.50 152 $ 3.48 152 $ 3.48 1.7 184 $ 3.45 184 $ 3.45 1.5 As of December 31, 2019 $ 3.43 - $3.50 89 $ 3.49 89 $ 3.49 0.7 89 $ 3.49 89 $ 3.49 0.7 Weibo’s Restricted Share Units The following table sets forth the summary of service-based restricted share unit activities for Weibo: Weighted-Average Shares Grant Date Granted Fair Value (In thousands) As at January 1, 2017 5,458 $ 17.23 Awarded 581 $ 62.87 Vested (2,406) $ 17.01 Cancelled/forfeited (366) $ 17.72 As at December 31, 2017 3,267 $ 25.45 Awarded 1,406 $ 68.18 Vested (1,757) $ 21.59 Cancelled/forfeited (160) $ 44.00 As at December 31, 2018 2,756 $ 48.62 Awarded 2,313 $ 45.49 Vested (1,374) $ 37.60 Cancelled/forfeited (183) $ 48.48 As at December 31, 2019 3,512 $ 50.89 As of December 31, 2019, unrecognized compensation cost, adjusted for estimated forfeitures and related to non-vested, service-based restricted share units granted to Weibo’s employees and directors, was $150.7 million. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 3.2 years. The total fair value based on the vesting date of the restricted share units vested was $40.9 million, $37.9 million and $51.7 million during the years ended December 31, 2017, 2018 and 2019, respectively. Weibo’s Summary of Performance-Based RSUs The following table sets forth a summary of Weibo’s performance-based RSU activities for the years ended December 31, 2017, 2018 and 2019: Weighted-Average Grant Date Shares Granted Fair Value (In thousands) January 1, 2017 108 $ 27.00 Awarded 155 $ 50.45 Vested (102) $ 27.00 Cancelled/forfeited (32) $ 46.42 December 31, 2017 129 $ 50.32 Awarded 191 $ 86.63 Vested (126) $ 50.32 Cancelled/forfeited (190) $ 86.90 December 31, 2018 4 $ 87.14 Awarded 98 $ 64.33 Vested (4) $ 87.14 Cancelled/forfeited (39) $ 69.14 December 31, 2019 59 $ 61.17 As of December 31, 2018 and 2019, there was $0.02 million and $0.4 million unrecognized compensation cost related to performance-based restricted share units granted to Weibo’s employees, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information | |
Segment Information | 19. Segment Information The Company currently operates in three principal business segments globally — Portal advertising, Weibo and Fintech. Information regarding the business segments provided to the Company’s chief operating decision makers (“CODM”) are at the revenue or gross margin level. The Company currently does not allocate operating expenses or assets to its segments, as its CODM does not use such information to allocate resources or evaluate the performance of the operating segments of Portal advertising and Fintech. The Company currently does not allocate other long-lived assets to the geographic operations, except for property and equipment. The following tables present summary information by segment: For the Year Ended December 31, 2017 : Portal advertising Fintech 1 Subtotal Weibo Elimination 2 Total (In thousands, except percentages) Net revenues $ 320,473 $ 122,535 $ 443,008 $ 1,150,054 $ (9,178) $ 1,583,884 - Advertising 320,473 — 320,473 996,745 (5,352) 1,311,866 - Non-advertising — 122,535 122,535 153,309 (3,826) 272,018 Costs of revenues 121,278 65,733 187,011 231,255 (4,129) 414,137 Gross margin 62 % 46 % 58 % 80 % 74 % Operating expenses: Sales and marketing $ 138,368 $ 275,537 $ (5,049) $ 408,856 Product development 73,999 193,393 — 267,392 General and administrative 62,608 42,315 — 104,923 Total operating expenses $ 274,975 $ 511,245 $ (5,049) $ 781,171 Income (loss) from operations (18,978) 407,554 — 388,576 Interest and other income, net 29,436 13,260 42,696 Income (loss) from equity method investments, net (17,100) 1,030 (16,070) Realized gain on long-term investments 131,993 14 132,007 Investment related impairment (118,223) (4,747) (122,970) Income before income tax expense 7,128 417,111 424,239 Income tax expense (7,930) (66,746) (74,676) Net income (loss) $ (802) $ 350,365 $ 349,563 For the Year Ended December 31 , 2018: Portal advertising Fintech 1 Subtotal Weibo Elimination 2 Total (In thousands, except percentages) Net revenues $ 290,215 $ 111,412 $ 401,627 $ 1,718,518 $ (11,818) $ 2,108,327 - Advertising 290,215 — 290,215 1,499,180 (110) 1,789,285 - Non-advertising — 111,412 111,412 219,338 (11,708) 319,042 Costs of revenues 117,600 68,500 186,100 277,648 (11,708) 452,040 Gross margin 59 % 39 % 54 % 84 % 79 % Operating expenses: Sales and marketing $ 172,648 $ 527,424 $ (110) $ 699,962 Product development 96,069 249,873 — 345,942 General and administrative 76,429 43,755 — 120,184 Goodwill and acquired intangibles impairment 12,691 10,554 — 23,245 Total operating expenses $ 357,837 $ 831,606 $ (110) $ 1,189,333 Income (loss) from operations (142,310) 609,264 — 466,954 Interest and other income, net 25,547 43,808 69,355 Income (loss) from equity method investments, net 1,063 57 1,120 Realized gain (loss) on long-term investments 3,016 (287) 2,729 Fair value changes through earnings on investments, net 56,459 40,074 96,533 Investment related impairment (57,207) (24,074) (81,281) Income (loss)before income tax expense (113,432) 668,842 555,410 Income tax expense (32,862) (96,222) (129,084) Net income (loss) $ (146,294) $ 572,620 $ 426,326 1 2 For the Year Ended December 31, 2019 : Portal advertising Fintech 1 Subtotal Weibo Elimination 2 Total (In thousands, except percentages) Net revenues $ 216,440 $ 206,780 $ 423,220 $ 1,766,914 $ (27,179) $ 2,162,955 - Advertising 216,440 — 216,440 1,530,211 (3,034) 1,743,617 - Non-advertising — 206,780 206,780 236,703 (24,145) 419,338 Costs of revenues 90,071 98,676 188,747 328,826 (24,145) 493,428 Gross margin 58 % 52 % 55 % 81 % 77 % Operating expenses: Sales and marketing $ 165,684 $ 465,339 $ (3,034) $ 627,989 Product development 88,374 284,444 — 372,818 General and administrative 207,720 90,721 — 298,441 Total operating expenses $ 461,778 $ 840,504 $ (3,034) $ 1,299,248 Income (loss) from operations (227,305) 597,584 — 370,279 Interest and other income, net 4,157 59,896 64,053 Income (loss) from equity method investments, net 13,222 (13,198) 24 Realized gain (loss) on long-term investments (3,022) 612 (2,410) Fair value changes through earnings on investments, net (42,143) 207,438 165,295 Investment related impairment (92,114) (249,935) (342,049) Income (loss) before income tax expense (347,205) 602,397 255,192 Income tax expense (36,901) (109,564) (146,465) Net income (loss) $ (384,106) $ 492,833 $ 108,727 The following is a summary of the Company’s geographic operations: PRC International Total (In thousands) Year ended and as of December 31, 2017: Net revenues $ 1,571,035 $ 12,849 $ 1,583,884 Long-lived assets $ 285,208 $ 279 $ 285,487 Year ended and as of December 31, 2018: Net revenues $ 2,096,179 $ 12,148 $ 2,108,327 Long-lived assets $ 487,844 $ 337 $ 488,181 Year ended and as of December 31, 2019: Net revenues $ 2,154,529 $ 8,426 $ 2,162,955 Long-lived assets $ 466,727 $ 659 $ 467,386 Revenues are attributed to the countries in which the invoices are issued. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments | |
Financial Instruments | 20. Financial Instruments Fair Value The following table sets forth the major financial instruments, measured at fair value, by level within the fair value hierarchy as of December 31, 2018 and 2019: Fair Value Measurements (In thousands) Quoted Prices in Active Market Significant Other Significant for Identical Assets Observable Inputs Unobservable Inputs Total (Level 1) (Level 2) (Level 3) As of December 31, 2018 Assets Money market funds 1 $ 86,823 $ 86,823 $ — $ — Bank time deposits 2 874,901 — 874,901 — Equity securities with readily determinable fair value 3 93,262 93,262 — — Total $ 1,054,986 $ 180,085 $ 874,901 $ — Liabilities Guarantee liabilities $ 10,952 $ — $ — $ 10,952 As of December 31, 2019 Assets Money market funds 1 $ 18,951 $ 18,951 $ — $ — Bank time deposits 2 977,578 — 977,578 — FVO Loan Investment 4 121,131 — — 121,131 Equity securities with readily determinable fair value 3 251,003 251,003 — — Total $ 1,368,663 $ 269,954 $ 977,578 $ 121,131 Liabilities Guarantee liabilities $ 43,677 $ — $ — $ 43,677 1 2 3 4 Recurring The Company measures money market funds, bank time deposits and marketable securities with readily determinable fair value on a recurring basis. The fair values of the Company’s money market funds and equity securities with readily determinable fair value are determined based on the quoted market price (Level 1). The fair value of the Company’s bank time deposits are determined based on the quoted market price for similar products (Level 2). The Company reviews its equity securities investments regularly to determine if an investment is other-than-temporarily impaired due to changes in quoted market price or other impairment indicators prior to 2018. In 2017, the Company recognized an impairment charge of $1.3 million on equity securities investments. With the adoption of new investment guidance under ASC 820, the available-for-sale securities were reclassified as investment with readily determinable fair values beginning January 1, 2018 with their fair value change recognized in earnings immediately. The fair values of the Company’s equity investments in the equity securities are measured using quoted market prices. Non-recurring For those investments without readily determinable fair value, the Company measures them at fair value when observable price changes are identified or impairment charge were recognized. The fair values of the Company’s privately held investments as disclosed are determined based on the discounted cash flow model using the discount curve of market interest rates or based on the similar transaction price in the market directly. The Company classifies the valuation techniques on those investments that use similar identifiable transaction prices as Level 2 of fair value measurements. The Company also measures equity investments without readily determinable fair values at fair value on a non-recurring basis when an impairment charge were to be recognized. As of December 31, 2018 and 2019, certain investments were measured using significant unobservable inputs (Level 3) and written down from their respective carrying values to fair values, considering the stage of development, the business plan, the financial condition, the sufficiency of funding and the operating performance of the investee companies and strategic collaboration with and the prospects of the investee companies, with impairment charges incurred and recorded in earnings for the years then ended. The Company recognized an impairment charge of $120.8 million for those investments under cost method and equity method in 2017. The Company recognized an impairment charge of $61.0 million and $321.4 million for those investments without readily determinable fair values and equity method investments in 2018 and 2019, respectively. As of December 31, 2018 and 2019, the remaining balance of those investments after impairment were $15.5 million and $215.9 million, respectively. The fair value of the privately held investments is valued based on the discounted cash flow model with unobservable inputs including the discount curve of market interest rates, which ranges from 12% to 23%, or valued based on market approach with unobservable inputs including selection of comparable companies and multiples and estimated discount for lack of marketability. The Company’s non-financial assets, such as intangible assets, goodwill and fixed assets, would be measured at fair value only if they were determined to be impaired. The Company reviews the long-lived assets and certain identifiable intangible assets other than goodwill for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. For the years ended December 31, 2017, 2018 and 2019, the Company provided nil, $12.7 million and nil of impairment on the acquired intangible assets based on management’s assessment. The Company has a policy to perform impairment assessment of its goodwill on an annual basis as of the balance sheet date, or when facts and circumstances warrant a review. Based on the assessment of declined revenue and near-term outlook, considering a number of factors, which include, but are not limited to, expected future cash flows, growth rates, discount rates, and comparable multiples from publicly traded companies in the industry, the Company performed goodwill impairment assessment at the reporting unit level. With the assistance of an independent valuation firm, the Company recognized a goodwill impairment of nil, $10.6 million and nil for the years ended December 31, 2017, 2018 and 2019, respectively and the remaining carrying values were zero after the impairment for the respective reporting units. The fair value of reporting units were determined using Level 3 inputs. The Company measures its guarantee liabilities initially at fair value and estimates the fair value of the guarantee liabilities by estimating with the consideration of discounting expected future payouts, accumulative expected loss rates and incorporating a markup margin. The expected net accumulative expected loss rates applied in the valuation models which ranged from 3.2% to 3.7% at inception. These inputs in isolation can cause significant increases or decreases in fair value. The Company also elected to measure one loan investment with variable interest rate using fair value option, with subsequent fair value change recorded in fair value changes through earnings on investments, net. The Company estimated the fair value with consideration of expected future cash flow under different scenarios, possibility of different scenarios and discount rate. Guarantee liabilities and FVO Loan Investment are categorized in the Level 3 valuation hierarchy based on the significance of unobservable factors in the overall fair value measurement. The following table sets forth the Company's guarantee liabilities movement activities for the years ended December 31, 2018 and 2019. Year ended December 31, 2018 2019 (In thousands) Balance at the beginning of year $ 10,143 $ 10,952 Provision at the inception of new loans 39,291 70,120 Payment for the guarantee (37,082) (34,507) Subsequent adjustments to the provisions (792) (2,452) Foreign exchange impacts (608) (436) Balance at the end of the year $ 10,952 $ 43,677 Concentration of Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents, short-term investments and accounts receivable. In addition, with the majority of its operations in China, the Company is subject to RMB currency risk and offshore remittance risk, both of which have been difficult to hedge and the Company has not done so. The Company limits its exposure to credit loss by depositing its cash and cash equivalents with financial institutions in the U.S., the PRC, Hong Kong, Singapore and Taiwan, which are among the largest and most respected with high ratings from internationally-recognized rating agencies, that management believes are of high credit quality. The Company periodically reviews these institutions’ reputations, track records and reported reserves. As of December 31, 2018 and 2019, the Company had $2.3 billion and $2.8 billion in cash and bank deposits, such as time deposits (with terms generally up to twelve months), with large domestic banks in China, respectively. Historically, deposits in Chinese banks were secure due to the state policy on protecting depositors’ interests. However, China promulgated a new Bankruptcy Law that came into effect on June 1, 2007, which contains a separate article expressly stating that the State Council may promulgate implementation measures for the bankruptcy of Chinese banks based on the Bankruptcy Law. Under the new Bankruptcy Law, a Chinese bank may go bankrupt. In addition, since China’s concession to WTO, foreign banks have been gradually permitted to operate in China and have become significant competitors to Chinese banks in many aspects, especially since the opening of RMB business to foreign banks in late 2006. Therefore, the risk of bankruptcy on Chinese banks in which the Company holds cash and bank deposits has increased. In the event that a Chinese bank that holds the Company’s deposits goes bankrupt, the Company is unlikely to claim its deposits back in full, since it is unlikely to be classified as a secured creditor to the bank under the PRC laws. Accounts receivable consist primarily of advertising agencies, direct advertising customers and mobile operators. As of December 31, 2018 and 2019, substantially all accounts receivable have been derived from the Company’s China operations. No customer accounted for more than 10% of the Company’s total net revenues in 2017, 2018 and 2019. Only three and two customers accounted for more than 10% of the Company’s net accounts receivable as of December 31, 2018 and 2019 as follows: As of December 31, 2018 2019 Customer Customer A 10 % 10 % Customer B 13 % 18 % Customer C 15 % * * Less than 10% The majority of the Company’s net operating income was derived from China. The operations in China are carried out by the subsidiaries and VIEs. The Company depends on dividend payments from its subsidiaries in China after these subsidiaries receive payments from VIEs in China under various services and other arrangements. In addition, under Chinese law, its subsidiaries are only allowed to pay dividends to the Company out of their accumulated profits, if any, as determined in accordance with Chinese accounting standards and regulations. Moreover, these Chinese subsidiaries are required to set aside at least 10% of their respective accumulated profits, if any, up to 50% of their registered capital to fund certain mandated reserve funds that are not payable or distributable as cash dividends. The appropriation to mandated reserve funds are assessed annually. In 2017, 2018 and 2019, the majority of the Company’s revenues derived and expenses incurred were in RMB. As of December 31, 2018 and 2019, the Company’s cash, cash equivalents, restricted cash and short-term investments balance denominated in RMB was $1.2 billion and $1.4 billion, accounting for 49% and 44% of the Company’s total cash, cash equivalents, restricted cash and short-term investments balance, respectively. As of December 31, 2018 and 2019, the Company’s accounts receivable balance denominated in RMB was $527.9 million and $601.3million, which accounted for almost all of its net accounts receivable balance, respectively. As of December 31, 2018 and 2019, the Company’s current liabilities balance denominated in RMB was $1,091.9 million and $1,497.1 million, which accounted for 95% and 87% of its total current liabilities balance, respectively. Accordingly, the Company may experience economic losses and negative impacts on earnings and equity as a result of exchange rate fluctuations of RMB. Moreover, the Chinese government imposes controls on the convertibility of RMB into foreign currencies and, in certain cases, the remittance of currency out of the PRC. The Company may experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currency. The Company performed a test on the restricted net assets of consolidated subsidiaries and VIEs (the “Restricted Net Assets”) in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that the restricted net assets did not exceed 25% of the consolidated net assets of the Company as of December 31, 2019 (Note 16). |
Convertible Debt, Unsecured Sen
Convertible Debt, Unsecured Senior Notes and Treasury Stock | 12 Months Ended |
Dec. 31, 2019 | |
Convertible Debt, Unsecured Senior Notes and Treasury Stock | |
Convertible Debt, Unsecured Senior Notes and Treasury Stock | 21. Convertible Debt, Unsecured Senior Notes and Treasury Stock Description of 2018 Convertible Senior Notes In November 2013, the Company issued $800 million in aggregate principal amount of 1.00% coupon interest convertible senior notes due on December 1, 2018 (the “2018 Notes”) at par. The Notes were convertible into ordinary shares of the Company proceeding December 1, 2018 in $1,000 principal amount or an integral multiple of $1,000 in excess thereof, at the option of the holder, at an initial conversion price of approximately $123.70 per ordinary share, subject to adjustment. The conversion rate may be adjusted under certain circumstances, such as distribution of dividends and stock splits. In addition, upon a make-whole fundamental change, the Company will, under certain circumstances, increase the applicable conversion rate for a holder that elects to convert its notes in connection with such make-whole fundamental change. The Company believes that the likelihood of occurrence of events considered a fundamental change is remote. The net proceeds to the Company from the issuance of the 2018 Notes were $783.2 million, net of issuance cost of $16.8 million. Concurrently, the Company repurchased $100.0 million of its shares from the open market. The Company pays cash interest at an annual rate of 1.00% on the 2018 Notes, payable semiannually in arrears in cash on June 1 and December 1 of each year, beginning June 1, 2014. The issuance costs of the 2018 Notes are being amortized to interest expense to the earliest redemption date of the 2018 Notes (“December 1, 2016”). Concurrently with the issuance of the Notes, the Company offered a put option (the “Put Option”) to the holders of the Notes, which enable the holders to have the right to require the Company to repurchase for cash all or part of the Notes at a price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest to the repurchase date (“December 1, 2016”). If a fundamental change (as defined in the Indenture) occurs prior to the maturity date, the 2018 Notes holders may require the Company to purchase for cash all or any portion of the Notes at a purchase price equal to 100% of the principal amount of the Notes to be purchased plus accrued and unpaid interest, if any, but excluding, the fundamental change purchase date. On December 1, 2016, the Company repurchased $646.9 million principal amount of convertible debt upon the exercise of the put option by the holders of 2018 Notes. Upon the election of notes holder, the Company converted $7,000 principal amount of convertible debt into ordinary shares in 2018 and the remaining notes were repaid in December 2018. In accordance with ASC 815-10-15, the Put Option related to the 2018 Notes is considered clearly and closely related to its debt host and does not meet the requirement for bifurcation as the 2018 Notes holders can only recover its initial investment upon exercise of its option, there are no interest rate scenarios under which the embedded derivative would at least double the investor’s initial rate of return. Therefore, the 2018 Notes and the embedded put option should be accounted for as a single instrument in accordance with the accounting rule. Description of 2022 Weibo Convertible Senior Notes In October 2017, Weibo, a subsidiary of the Company, issued $900 million in aggregate principal amount of 1.25% coupon interest convertible senior notes due on November 15, 2022 (the “2022 Notes”) at par. The Notes may be converted into ADSs of Weibo preceding November 15, 2022 in $1,000 principal amount or an integral multiple of $1,000 in excess thereof, at the option of the holder, at an initial conversion price of approximately $133.27 per ADS, subject to adjustment. The conversion rate may be adjusted under certain circumstances, such as distribution of dividends and stock splits. In addition, upon a make-whole fundamental change, Weibo will, under certain circumstances, increase the applicable conversion rate for a holder that elects to convert its notes in connection with such make-whole fundamental change. As of November 15, 2022, unless earlier converted, Weibo is required to redeem the notes. The net proceeds to the Company from the issuance of the 2022 Notes were $879.3 million, net of issuance cost of $20.7 million. The Company pays cash interest at an annual rate of 1.25% on the 2022 Notes, payable semiannually in arrears in cash on May 15 and November 15 of each year, beginning May 15, 2018. The issuance costs of the 2022 Notes are being amortized to interest expense over the contractual period to the maturity date of the 2022 Notes (“November 15, 2022”). Description of 2024 Weibo Unsecured Senior Notes In July 2019, Weibo issued $800 million in aggregate principal amount of unsecured senior notes due on July 5, 2024 (“2024 Weibo Senior Notes”). The 2024 Weibo Senior Notes were issued at par value and bear an annual interest rate of 3.50%, payable semiannually in arrears on January 5 and July 5 of each year, beginning on January 5, 2020. The 2024 Weibo Senior Notes will mature on July 5, 2024, unless previously repurchased or redeemed in accordance with the terms prior to maturity. The net proceeds to Weibo from the issuance of the 2024 Notes were $793.3 million, net of issuance cost of $6.7 million. The issuance costs of the 2024 Weibo Senior Notes are being amortized to interest expense over the contractual life. The 2024 Weibo Senior Notes do not contain any financial covenants or other significant restrictions. Accounting assessment The Company assessed the accounting for 2018 Notes and 2022 Notes (collectively as “Convertible Notes”) in accordance with ASC 470 and concluded that: ● The bifurcation of the conversion feature from the debt host, the Convertible Notes, is not required as the conversion option is considered indexed to the entity’s own stock and classified in stockholders’ equity, and therefore meets the scope exception prescribed in ASC 815-10-15 ; ● There is no beneficial conversion feature noted at the issuance date as the conversion price of the Notes is greater than the stock price of the offering company at the date of issuance. Therefore, the Company has accounted for the respective Convertible Notes as a single instruments in accordance with ASC 470, and classified them as a long-term debt. The issuance cost were recorded as reduction to convertible notes balance, and are amortized as interest expenses over the period from the issuance date to the earliest conversion date. The Company recognized interest expenses related to the 2018 Notes of $4.2 million and $1.4 million for the years ended December 31, 2017 and 2018, respectively. The interest expenses related to the 2022 Notes were $15.4 million for both the years ended December 31, 2018 and 2019, respectively. The interest expenses related to the 2024 Notes was $14.5 million for the year ended December 31, 2019. Treasury Stock In February 2016, the board of directors of the Company approved a new share repurchase plan whereby the Company is authorized to repurchase its own ordinary shares with an aggregate value of up to $500 million for a period through the end of June 2017 (the “2016 Program”). In 2017, the 2016 Program was extended to be effective until June 30, 2018. Up to the expiration date, approximately 3.4 million shares were repurchased for approximately $302.6 million in cash under the 2016 Program. In August 2018, the board of directors approved a new share repurchase plan whereby the Company was authorized to repurchase its own ordinary shares with an aggregate value of up to $500 million for a period through the end of December 2019 (the “2018 Program”). As of December 31, 2019, approximately 2.2 million shares were repurchased for approximately $82.1 million in cash under the 2018 Program. On December 30, 2019, board of directors has authorized a share repurchase program under which the Company may repurchase up to $500 million of its ordinary shares for a period through the end of December 2020 (the 2020 Program). All the ordinary shares repurchased above are no longer outstanding and pending for cancellation and are included as treasury stock. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | 22. Commitments and Contingencies Operating lease commitments include the commitments under the lease agreements for the Company’s office premises. The Company leases its office facilities under non-cancelable operating leases with various expiration dates through 2023. For the years ended December 31, 2017, 2018 and 2019, rental expense was $13.7 million, $17.9 million and $17.0 million, respectively. Based on the current rental lease agreements, future minimum rental payments required as of December 31, 2019 were as follows: Less than One One to Three to More than Total Year Three Years Five Years Five Years (In thousands) Operating lease commitments $ 26,681 $ 13,101 $ 13,492 $ 88 $ — Purchase commitments mainly include minimum commitments for Internet connection, content and services related to website operation, and marketing activities. Capital commitment was primarily related to commitments on the purchase of fixed assets and the payment on leasehold improvements. Purchase commitments as of December 31, 2019 were as follows: Less than One One to Three to More than Total Year Three Years Five Years Five Years (In thousands) Purchase commitments $ 626,477 $ 591,330 $ 35,084 $ 63 $ — Capital commitments $ 5,587 $ 5,025 $ 562 $ — $ — Other commitment represents future maximum commitment relating to the principal amount and interests in connection with a) the issuance of $900 million in aggregate principle amount of 1.25% coupon interest convertible senior notes by Weibo, which will due in 2022 b) the issuance of $800 million in aggregate principle amount of 3.5% coupon interest senior notes by Weibo, which will due in 2024 c) the principal amount and interests of short-term bank loans d) the principal amount and interests of funding debts e) the litigation reserve for NAI f) commitment on equity investment. Other commitments as of December 31, 2019 were as follows: Less than One One to Three to More than Total Year Three Years Five Years Five Years (In thousands) 2022 Notes $ 933,750 $ 11,250 $ 922,500 $ — $ — 2024 Notes 940,000 28,000 56,000 856,000 — Short-term bank loans 82,929 82,929 — — — Funding debts and interests 197,132 174,872 22,260 — — Litigation reserve 125,809 125,809 — — — Equity investments 115,022 115,022 — — — Total other commitments $ 2,394,642 $ 537,882 $ 1,000,760 $ 856,000 $ — There are uncertainties regarding the legal basis of the Company’s ability to operate an Internet business and telecommunication value-added services in China as of December 31, 2019. Although China has implemented a wide range of market-oriented economic reforms, the telecommunication, information and media industries remain highly regulated. Not only are such restrictions currently in place, but in addition regulations are unclear as to in which specific segments of these industries companies with foreign investors, including the Company, may operate. Therefore, the Company might be required to limit the scope of its operations in China, and this could have a material adverse effect on its financial position, results of operations and cash flows. The Company's financial service business is operated under highly regulated environment with frequent new rules and regulations. The implementations and interpretations of certain new rules and regulations are unclear. The company provides guarantee on the principal, interest payment and penalty fee of the defaulted loans to the lenders via qualified guarantee companies. In addition, the Company commits to fund certain shortfalls in the event a borrower fails to fulfill its repayment obligation and the guarantee provided by the qualified third party was not sufficient. Due to the risk and uncertainty of such arrangements, the Company is not certain that the existing practices will not be deemed to violate any existing or future laws, regulations, rules, and policies. Therefore, the Company might be required to adjust those arrangements prospectively and make other remediation for existing contracts, which may cause a negative impact to the Company's financial performance. In June and August 2017, Weibo and certain of its current and former directors and officers were named as defendants in two putative securities class actions filed in the United States District Court for the District of New Jersey, respectively. The actions - purportedly brought on behalf of a class of persons who allegedly suffered damages as a result of their trading in Weibo’s ADSs between April 27 and June 22, 2017 or between April 28, 2016 and June 19, 2017, allege that Weibo’s public filings contained material misstatements and omissions in violation of the U.S. federal securities laws. On September 28, 2017, the court entered an order appointing a lead plaintiff and consolidating the two cases. On November 27, 2017, the lead plaintiff filed a consolidated class action complaint. On January 26, 2018, Weibo and one individual defendant filed a motion to dismiss the amended complaint. On June 7, 2018, the court granted the motion to dismiss the class action complaint in its entirety with prejudice. The Company and a few of its subsidiaries have been named as respondents in an arbitration initiated with the Netherlands Arbitrage Institute and China International Economic and Trade Arbitration Commission ("CIETAC") in which the claimant claimed damages amount based on the alleged use by the respondents of certain intellectual property of the claimants in breach of certain license agreements. On June 3, 2019, the CIETAC issued its award that denied the claimant's claims in favor of the respondents. In December 2019, the arbitrators of Netherlands Arbitrage Institute found that Sina Hong Kong Limited was a party to, and had breached, a license agreement with the claimant and ordered that Sina Hong Kong Limited and another subsidiary of the Company be jointly and severally obligated to pay the claimant as stipulated under the arbitral award. As Sina Hong Kong Limited is the Company's consolidated subsidiary, the Company recorded a litigation reserve of approximately $125.8 million in operating expenses in the fourth quarter of 2019. The Company believe this cases is without merit and intend to defend the action vigorously. As of December 31, 2019, there are no other claims, lawsuits, investigations and proceedings, including unasserted claims that are probable to be assessed, that have in the recent past had, or to the Company’s knowledge, are reasonably possible to have, a material effect on the Company’s financial position, results of operations or cash flows. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events | |
Subsequent Events | 23. Subsequent Events Subsequent to December 31, 2019, the Company’s business has been significantly impacted by the coronavirus outbreak in China. The epidemic has resulted in quarantines, travel restrictions, and suspension of non-essential business all around China. The Company’s business operations, financial condition, operating results and cash flow for 2020 will adversely be affected by the outbreak, including but not limited to material negative impact to the Company’s total revenues, slower collection of accounts receivables, additional allowance for doubtful accounts and significant downward adjustments or impairment to the Company’s long-term investments. Due to the high uncertainty of the evolving situation, the Company has limited visibility on the full impact brought upon by the epidemic and the related financial impact cannot be estimated at this time. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies | |
Basis of presentation and use of estimates | Basis of presentation and use of estimates The preparation of the Company’s consolidated financial statements is in conformity with Generally Accepted Accounting Principles in the United States (“US GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the periods reported. Actual results may differ materially from such estimates. The Company believes the basis of consolidation, fair value, the recognition of non-controlling interests, revenue recognition, taxation, business combination, net income (loss) per share, goodwill and other long-lived assets, allowances for doubtful accounts, the allowance for financing receivables, long-term investments, guarantee liabilities, stock-based compensation, convertible debt and foreign currency represent critical accounting policies that reflect the more significant judgments and estimates used in the preparation of its consolidated financial statements. In February 2016, the Financial Accounting Standards Board (“FASB”) issued a new standard on leases, ASU 2016-02, "Leases (Topic 842)", and then in July 2018, the FASB issued an amendment, ASU 2018-11. The Company has adopted the new lease standard beginning the first quarter of fiscal year 2019 and elected to apply practical expedients permitted under the transition method and did not retrospectively adjust the prior comparative periods. Under the new lease standard, the Company determines if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at lease commencement date based on the present value of remaining lease payments over the lease terms. The Company considers only payments that are fixed and determinable at the time of lease commencement. The adoption of new leasing guidance resulted in recognition of $36.7 million of right-of-use asset and $37.5 million of leasing liability as of January 1, 2019, respectively (Refer to Note 7 for details). In May 2014, FASB issued, ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." The Company adopted new revenue guidance since January 1, 2018 using the modified retrospective method. Results for reporting periods beginning on or after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company's historic accounting method under ASC 605. The main impacts are a) the presentation of value added tax recognized in revenue from "gross" to "net", which results in equal decrease of revenues and cost of revenues, and b) the recognition of revenues and expenses at fair value for advertising barter transactions, which mainly results in the increase of revenue and advertising expenses. The cumulative-effect adjustment on the retained earnings as of January 1, 2018 related to the initial application of the new revenue standard was immaterial. In January 2016, the FASB issued an updated guidance, ASU 2016-1, Classification and Measurement of Financial Instruments, which intended to improve the recognition and measurement of financial instruments. The Company adopted the guidance as of the beginning of the fiscal year of 2018. After the adoption of this new accounting update in the first quarter of 2018, the Company measures equity investments other than equity method investments at fair value through earnings, which could vary significantly quarter to quarter. For those investments without readily determinable fair values, the Company elects to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Changes in the basis of these investments are reported in current earnings starting from January 1, 2018. The cumulative effects of initially applying the guidance mainly related to the reclassification of unrealized gain of $38.7 million from accumulated other comprehensive income to retained earnings in relation to the available-for-sale securities on January 1, 2018, the date of initially applying the guidance (Refer to Note 5 for details). |
Consolidation | Consolidation The consolidated financial statements include the accounts of the Company, its wholly-owned and majority-owned subsidiaries and its variable interest entities (“VIEs”), of which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated. To comply with PRC laws and regulations, the Company provides substantially all of its Internet content, online loan facilitation services, online payment services and mobile value added service (“MVAS”) in China via its VIEs, which hold critical operating licenses that enable the Company to do business in China. Substantially all of the Company’s revenues, costs and net income (loss) in China are directly or indirectly generated through these VIEs. The Company has signed various agreements with its VIEs and legal shareholders of the VIEs to allow the transfer of economic benefits from the VIEs to the Company and to direct the activities of the VIEs. The Company’s VIEs are wholly or partially owned by nominee shareholders of the Company except for the consolidated trusts (Note 4). The capital for the VIEs is funded by the Company and recorded as interest-free loans to these nominee shareholders. These loans were eliminated with the capital of the VIEs during consolidation. Under various contractual agreements, nominee shareholders of the VIEs are required to transfer their ownership in these entities to the Company’s subsidiaries in China when permitted by PRC laws and regulations or to designees of the Company at any time for the amount of loans outstanding. All voting rights of the VIEs are assigned to the Company, and the Company has the right to appoint all directors and senior management personnel of the VIEs. The Company has also entered into exclusive technical service agreements with the VIEs, under which the Company provided technical and other services to the VIEs. In addition, nominee shareholders of the VIEs have pledged their shares in the VIEs as collateral for the non-payment of loans or for the technical and other services fees due to the Company. As of December 31, 2018 and 2019, the total amount of interest-free loans to these nominee shareholders was $294.9 million and $292.7 million, respectively. The aggregate accumulated income were approximately $32.2 million and $79.0 million as of December 31, 2018 and 2019 respectively, which have been included in the consolidated financial statements. The following table sets forth the assets, liabilities, results of operations and changes in cash, cash equivalents and restricted cash of the VIEs and their subsidiaries taken as a whole, which were included in the Company’s consolidated balance sheets and statements of comprehensive income (loss) with intercompany transactions eliminated: As of December 31, 2018 2019 (In thousands) Total assets $ 1,142,515 $ 1,604,422 Total liabilities $ 748,354 $ 1,286,259 Year Ended December 31, 2017 2018 2019 (In thousands) Net revenues $ 1,372,419 $ 1,842,602 $ 1,943,995 Net income after intercompany service fee charge $ 35,649 $ 67,063 $ 46,838 Year Ended December 31, 2017 2018 2019 (In thousands) Net cash provided by (used in) operating activities $ (78,813) $ (84,961) $ 373 Net cash used in investing activities (70,971) (443,588) (552,829) Net cash provided by financing activities 128,730 399,182 746,979 Net increase (decrease) in cash, cash equivalents and restricted cash $ (21,054) $ (129,367) $ 194,523 As of December 31, 2018 and 2019, the total assets for the consolidated VIEs were $1,142.5 million and $1,604.4 million, respectively, which mainly comprised of $184.6 million and $276.1 million in cash, cash equivalents and short-term investments, $97.0 million and $184.1 million in restricted cash and the remaining balances include goodwill, intangible assets, accounts receivable, prepaid expenses and other current assets, financing receivables, operating lease right-of-use assets, long-term investments and property and equipment and other assets. As of December 31, 2018 and 2019, total liabilities for the consolidated VIEs were $748.4 million and $1,286.3 million, respectively, which mainly included $400.7 million and $662.0 million in accrued expenses and other current liabilities, $97.0 million and $121.6 million in amounts due to customers related to SINA Pay, $31.5 million and $42.1 million in income taxes payable, $97.8 million and $94.9 million in deferred revenues, $59.2 and $51.6 million in short-term bank loan, $173.8 million in short-term funding debts, $4.2 million in short-term operating lease liabilities, $22.3 million in long-term funding debts, and $4.5 million in long-term operating lease liabilities, respectively. Under the contractual arrangements with the VIEs, the Company has the power to direct activities of the VIEs and can have assets transferred freely out of the VIEs without restrictions. Therefore, the Company considers that there is no asset of VIEs that can only be used to settle obligations of the respective VIEs, except for registered capital and PRC statutory reserves of VIEs amounting to a total of $374.2 million and $376.3 million as of December 31, 2018 and 2019, respectively. Since the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do not have recourse to the general credit of the Company. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Company is conducting certain businesses mainly through its VIEs, the Company may provide such support on a discretionary basis in the future, which could expose the Company to a loss. The following is a summary of the Company’s major VIEs and subsidiary of VIEs as of December 31, 2019: ● Beijing SINA Internet Information Service Co., Ltd. (the “ICP Company”), a Chinese company controlled through business agreements, is responsible for operating www.sina.com and www.sina.cn in connection with its Internet content company license, sell online advertising and provide MVAS with its Value-Added Telecommunication Services Operating License via third-party operators in China. It is owned by four nominee shareholders of the Company. The register capital of the ICP Company is $121.7 million. ● Beijing Star-Village Online Cultural Development Co., Ltd. (“StarVI”), formerly Beijing Star-Village.com Cultural Development Co., Ltd, a Chinese company controlled through business agreements, mainly is responsible for providing online advertising services through SINA News APP and www.sina.cn since April 2017. Before this, Star VI mainly provided MVAS in China via third-party operators under its Value-Added Telecommunication Services Operating License. It is owned by three nominee shareholders of the Company. The registered capital of the StarVI is $1.2 million. ● Jinzhuo Hengbang Technology (Beijing) Co., Ltd. (“the IAD Company”), formerly Beijing SINA Infinity Advertising Co., Ltd., is an advertising agency in China controlled through business agreements and approved for the design, production, issuance and serving as an agency of advertisements. It is owned by two nominee shareholders of the Company. The registered capital of the IAD Company is $24.8 million. ● Beijing Weimeng Technology Co., Ltd (“Weimeng”), a Chinese company controlled through business agreement, is responsible for operating www.weibo.com and www.weibo.cn in connection with its Internet content company license and providing MVAS in China via third-party operators under its Value-Added Telecommunication Services Operating License. It is owned by four nominee shareholders of the Company. The registered capital of Weimeng is $84.9 million. ● Beijing Weibo Interactive Internet Technology Co., Ltd. (‘‘Weibo Interactive’’) , an online-game platform company, was acquired by the IAD Company in May 2013. All of the equity interest in Weibo Interactive was transferred to Weimeng in December 2013. The registered capital of Weibo Interactive is $8.7 million. ● Beijing Sina Payment Technology Co., Ltd. (“SINA Pay”), an online payment service company wholly owned by the ICP Company. The registered capital of SINA Pay is $15.7 million. ● Beijing Weiju Future Technology Co. Ltd. ("Weiju"), a lending related service company, was acquired by the Company in July 2017. The registered capital of Weiju is $3.7 million. Unrecognized revenue-producing assets held by the VIEs mainly include licenses, such as the Internet Content Provision License, the Value-Added Telecommunication Services Operating License, the Online Culture Operating Permit, the Internet News Publication License, the Payment Service License and trademarks, patents, copy rights and the domain names. Recognized revenue-producing assets held by the VIEs include core technology, vendor-relationship contracts, trademarks, domain names, customer lists relating to game-related services, lending-related service, living streaming and online payment platform technology, arising from acquisitions. Unrecognized revenue-producing assets, held by the Wholly Foreign Owned Enterprises (“WFOEs”), include customer lists relating to advertising and marketing services, game-related services, Weibo VIP memberships and data licensing, as well as trademarks. The following is a summary of the VIE agreements between the Company's wholly owned subsidiary, Sina.com Technology (China) Co., Ltd. ("STC"), VIE ICP Company and ICP Company's shareholders: Loan Agreements. Share Transfer Agreements. Agreements on Authorization to Exercise Shareholder’s Voting Power. Each shareholder of the ICP Company has authorized STC to exercise all of his/her voting power as a shareholder of the ICP Company. The authorizations are irrevocable and will not expire until the ICP Company dissolves. Modification, supplement or adjustment of the terms may only be made with the consents from STC. Share Pledge Agreements. Each shareholder of the ICP Company has pledged all of his/her shares in ICP Company and all other rights relevant to the share rights to STC, as a collateral security for his/her obligations to pay off all debts to STC under the loan agreement and for the payment obligations of the ICP Company under the trademark license agreement and the technical services agreement. In the event of default of any payment obligations, STC will be entitled to certain rights, including transferring the pledged shares to itself and disposing of the pledged shares through a sale or auction. During the term of each agreement, STC is entitled to receive all dividends and distributions paid on the pledged shares. The pledges will be effective until the earlier of Loan Repayment Agreements. Exclusive Technical Services Agreements. Each shareholder of the ICP Company below has entered into an exclusive technical services agreement with STC pursuant to which STC is engaged to provide certain technical services to the ICP Company. The exclusive technical services agreement can only be prematurely terminated by STC and will not expire until the ICP Company dissolves, and the service fees are adjusted annually through written agreements. Due to its control over the respective VIEs, the Company’s wholly owned subsidiaries have the right to determine the service fees to be charged to the respective VIEs by considering, among others, the technical complexity of the services, the actual costs that may be incurred for providing the services, the operations of each VIE, applicable tax rates, planned capital expenditures and business strategies. The ICP Company has engaged STC to provide technical services for its (i) online advertising and other related businesses, and (ii) value-added telecommunication and other related businesses. The ICP Company is obligated to pay service fees to STC. Exclusive Sales Agency Agreements. The ICP Company has granted STC the exclusive right to distribute, sell and provide agency services for all the products and services provided by the ICP Company. These exclusive sale agency agreements will not expire until the ICP Company is dissolved. The Exclusive Sales Agency Agreements enable STC to collect sales agency fees from the ICP Company if STC decide to do so. Trademark License Agreements. STC has granted the ICP Company trademark licenses to use the trademarks held by STC, in specific areas, and the ICP Company is obligated to pay license fees to STC. The terms of these agreements are for (i) STC, VIE IAD Company and IAD Company’s shareholders, (ii) the subsidiary Starshining Mobile Technology (China) Ltd. (“Star Shining”), VIE StarVI and StarVI’s shareholders, and (iii) the subsidiary Weibo Internet Technology (China) Ltd. (“Weibo Technology”), VIE Weimeng and Weimeng’s shareholders have also entered into VIE agreements in substantially the same form as described above, except for the below specific services provided under the exclusive technical services agreement. The IAD Company has engaged STC to provide technical services for its (i) online advertising and other related businesses, and (ii) value-added telecommunication and other related businesses. Pursuant to changes in applicable PRC laws in 2008, SINA established StarVI has engaged Star Shining to provide technical services for its Internet information service, and Star Shining has the sole right to appoint any company or companies at its discretion to perform such technical services. Weimeng has engaged Weibo Technology to provide technical services for its online advertising and other related businesses. The service fees that the Company's wholly owned subsidiaries charged to the major VIEs amounted to $784.8 million, $985.6 million and $951.0 million, respectively, for the fiscal years ended December 31, 2017, 2018 and 2019, respectively. The Company believes that the contractual arrangements among its subsidiaries, the VIEs and its shareholders are in compliance with the current PRC laws and legally enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. As a result, the Company may be unable to consolidate the VIEs and its subsidiary in the consolidated financial statements. The Company’s ability to control its VIEs also depends on the authorization by the shareholders of the VIEs to exercise voting rights on all matters requiring shareholders’ approval in the VIEs. The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable. In addition, if the legal structure and contractual arrangements with its VIEs were found to be in violation of any future PRC laws and regulations, the Company may be subject to fines or other actions. The Company believes the possibility that it will no longer be able to control and consolidate its VIEs as a result of the aforementioned risks and uncertainties is remote. |
Non-controlling interests | Non-controlling interests For the Company’s majority-owned subsidiaries and VIEs, non-controlling interests are recognized to reflect the portion of their equity that are not attributable, directly or indirectly, to the Company as the controlling shareholders. The majority of the Company’s non-controlling interests relate to Weibo Corporation and its subsidiaries. To reflect the economic interest in Weibo held by non-controlling shareholders, Weibo’s net income (loss) attributable to the non-controlling ordinary shareholders is recorded as non-controlling interests in the Company’s consolidated statements of comprehensive income (loss). Non-controlling interests are classified as a separate line item in the equity section of the Company’s consolidated balance sheets and have been separately disclosed in the Company’s consolidated financial statements to distinguish the interests from that of the Company. |
Fair value | Fair value All financial assets and liabilities are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The Company remeasures the equity method investments at fair value on a non-recurring basis only if an impairment charge were to be recognized. For those investments without readily determinable fair value, the Company measures them at fair value when observable price changes or impairments are identified. The fair values of the Company’s privately held investments as disclosed are determined based on the discounted cash flow model using the discount curve of market interest rates or based on the similar transaction price in the market directly. The fair values of the Company’s equity investments in the equity securities of publicly listed companies are measured using quoted market prices. The fair values of the Company's investments in private equity funds are measured using net asset value per share as a practical expedient, provided certain criteria are met. The Company’s non-financial assets, such as intangible assets, goodwill and fixed assets, would be measured at fair value only if they were determined to be impaired. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: ● Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. ● Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. ● Level 3 applies to asset or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Company uses significant unobservable inputs to measure the fair value of guarantee liabilities and loan investment accounted for using fair value option ("FVO Loan Investment") (Note 20). Guarantee liabilities and FVO Loan Investment are categorized in the Level 3 valuation hierarchy based on the significance of unobservable factors. The carrying amount of cash and cash equivalents, short-term investments, restricted cash, accounts receivable and other current assets (excluding for FVO Loan Investment), accounts payable, financing receivables, funding debts, short-term operating lease liabilities, short-term bank loan, amount due to customers and accrued expenses and other current liabilities (excluded for guarantee liabilities) approximates their fair value. |
Net income (loss) per share | Net income (loss) per share Basic net income (loss) per share is computed using the weighted average number of ordinary shares outstanding during the period. Options to purchase ordinary shares and restricted share units are not considered outstanding in computation of basic earnings (loss) per share. Diluted net income (loss) per share is computed using the weighted average number of ordinary shares and potential ordinary shares outstanding during the period, which include options to purchase ordinary shares, restricted share units and conversion of the convertible debt. The computation of diluted net income (loss) per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net income (loss) per share. Additionally, the Company takes into account the effect on consolidated net income (loss) per share of dilutive shares of entities in which the Company holds equity interests and interest expenses along with relevant amortized issuance costs of convertible debt under certain circumstances. The dilutive impact from equity interests mainly include long-term investments accounted for using the equity method and the consolidated subsidiaries, such as Weibo. |
Cash equivalents | Cash equivalents The Company considers all highly liquid investments with original maturities of three months or less as cash equivalents. Cash equivalents are comprised of investments in time deposits that mature within three months, which are stated at cost plus accrued interest, and money market funds are stated at fair market value. |
Short-term bank loans | Short-term bank loans Short-term bank loans as of December 31, 2018 and 2019 amounted to $78.2 million and $81.6 million, respectively, which consisted of several bank borrowings denominated in RMB. All of these bank borrowings were repayable within one year. The effective interest rate for the outstanding borrowings for 2018 and 2019 ranged from approximately 4.4% to 4.8% per annum. |
Restricted cash and amount due to customers | Restricted cash and amount due to customers The restricted cash primarily represents :(i) cash temporarily held on account for the merchant customers of the Company through the SINA Pay online payment platform and is considered legally restricted with the release of Measures for Online Payment Business of Non-financial Institutions by the People’s Bank of China (“PBOC”) in December 2015; (ii) cash received via consolidated trusts that has not yet been distributed (Note 4); (iii) security deposits set aside for partnering commercial banks or certain institutional funding partners in case of borrowers' defaults (see " Off-balance sheet loan facilitation service Amount due to customers represents the balances that are payable on demand to customers and therefore reflected as current liability on the consolidated balance sheets. The SINA Pay customer accounts are used to facilitate payments to online merchants or third party banks and are deemed as pass through accounts between the payer and the online merchant. The balances are in-transit to customers and the payments are normally made within the normal trade settlement dates. The changes in amount due to customers are presented within operating activities in the consolidated statements of cash flows. |
Financing receivables, net | Financing receivables, net Since January 2019, the Company set up a series of trusts to issue loans to the individual borrowers recommended by it. The purpose of this arrangement is to expand the funding resource for the lending business. The trusts are administered by third-party trust companies, which act as the trustees, with funds contributed by the Company and/or other third-party investors for the purposes of providing returns to the beneficiary of the trusts. The Company has power over the activities that most significantly impact the economic performance of the trusts and also absorbs substantially all of the variability in the trusts. Therefore, the Company has the right to receive benefits and the obligation to absorb losses from the trusts that could potentially be significant to the trusts. As a result, the trusts are VIEs and are consolidated under Accounting Standards Codification ("ASC") 810, Consolidation. Financing receivables represent loans facilitated through the consolidated trusts, which is measured at amortized cost. Financing receivable are recorded at unpaid principal balances and interest and financing services fee receivables , net of allowance for loan losses that reflects the Company's best estimate of the amounts that will not be collected. The proceeds received from third-party investors of the consolidated trusts are recorded as funding debts. Cash received by the consolidated trusts that has not yet been distributed is recorded as restricted cash. The allowance for loan losses is determined at a level believed to be reasonable to absorb probable losses inherent in the portfolio of the financing receivables as of each balance sheet date. The allowance is provided based on the Company's assessments performed both on an individual-loan basis and collective basis. All loans are assessed depending on factors such as delinquent rate, size and other risk characters of the portfolio. The Company considers a financing receivable to be delinquent when a monthly payment is one day past due. When the Company determines it is probable that it will be unable to collect unpaid principal amount on the receivable, the remaining unpaid principal balance is charged off against the allowance for credit losses. The primary factor in making such determination is the assessment of potential recoverable amounts from the delinquent debtor. Interest and financial services income for nonaccrual financing receivables is recognized on a cash basis. The Company does not resume accrual of interest after a loan has been placed on nonaccrual status. |
Business combination | Business combination Business combinations are recorded using the purchase method of accounting, and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of the (i) the total of consideration of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the subsidiary acquired over (ii) the fair value of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the consideration of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income (loss). In a business combination achieved in stages, the Company remeasures its previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the re-measurement gain or loss, if any, is recognized in earnings. The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed and non-controlling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Company determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, forecasted life cycle and forecasted cash flows over that period. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Company’s acquisitions of interests in its subsidiaries and consolidated VIEs. The Company assesses goodwill for impairment in accordance with ASC subtopic 350-20 (“ASC 350-20”), Intangibles - Goodwill and Other: Goodwill, which requires that goodwill be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events, as defined by ASC 350-20. US GAAP provides the option to apply the qualitative assessment first and then the quantitative assessment, if necessary, or to apply the quantitative assessment directly. The qualitative approach starts the goodwill impairment test by assessing qualitative factors by taking into consideration of macroeconomics, overall financial performance, industry and market conditions and the share price of the Company, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If so, the quantitative impairment test is performed; otherwise, no further testing is required. When the Company performs the quantitative impairment test, the Company firstly determines whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. For those reporting units where it is determined that it is more likely than not that their fair values are less than the units’ carrying amounts, the Company performs the second step of a two-step quantitative goodwill impairment test to allocate the fair value of reporting units to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. |
Long-lived assets | Long-lived assets Intangible assets mainly include land use rights and certain intangible assets arising from acquisitions. Land use rights represent the land use rights acquired for the purpose of constructing offices, which is being amortized on a straight-line basis over the term of the land use right period, approximately 50 years. The acquisition related intangible assets are recognized at fair value upon acquisition and amortized on a straight-line basis over their estimated useful lives, generally from one Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, as follows: Office building - 45 years Office building related facilities - 20 years Furniture and fixtures - 5 years Computers and equipment - 3 to 4 years Leasehold improvements - over the shorter of the estimated useful lives of the assets or the remaining lease term Depreciation expenses were $28.6 million, $32.1 million and $36.2 million for 2017, 2018 and 2019, respectively. All direct and indirect costs that are related to the construction of fixed assets and incurred before the assets are ready for their intended use are capitalized as prepayment for office building in other assets. Prepayment for office building is transferred to specific fixed assets items and depreciation of these assets commences when they are ready for their intended use. Long-lived assets and certain identifiable intangible assets other than goodwill to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold or use is based on the amount by which the carrying value exceeds the fair value of the asset. The impairment charges of intangible assets for the years ended December 31, 2017, 2018 and 2019 was nil, $12.7 million and nil, respectively (Note 8). |
Leases | Leases In February 2016, the FASB issued a new standard on leases, ASU 2016-02, "Leases (Topic 842)", which requires a lessee to recognize assets and liabilities arising from operating leases. A lessee should recognize a liability to make lease payments (the Lease Liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities. In July 2018, the FASB issued an amendment, ASU 2018-11, which provides another transition method in addition to the existing transition methods by allowing entities to initially apply the new leases standard at the effective date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption and to not retrospectively adjust prior periods financial statements. The Company has adopted the new lease standard beginning the first quarter of fiscal year 2019 and elected to apply practical expedients permitted under the transition method that allow the Company to use the beginning of the period of adoption (January 1, 2019) as the date of initial application, to not recognize lease assets and lease liabilities for leases with a term of twelve months or less, to not separate non-lease components from lease components, and to not reassess lease classification, treatment of initial direct costs, or whether an existing or expired contract contains a lease. The Company did not retrospectively adjust the prior comparative periods. Under the new lease standard, the Company determines if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at lease commencement date based on the present value of remaining lease payments over the lease terms. The Company considers only payments that are fixed and determinable at the time of lease commencement. The adoption of new leasing guidance resulted in recognition of $36.7 million of right-of-use asset and $37.5 million of leasing liability as of January 1, 2019, respectively. |
Long-term investments | Long-term investments Long-term investments are comprised of investments in publicly traded companies, privately-held companies and limited partnerships. Equity Securities Accounting For Under the Equity Method The Company uses the equity method to account for common-stock-equivalent equity investments and limited-partnership investments in entities over which it has significant influence but does not own a majority equity interest or otherwise control. Equity Securities Other Than Equity Method Investments Prior To 2018 Before adopting ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, for long-term investments over which the Company does not have significant influence, the cost method accounting is used. For long-term investments in shares that are not ordinary shares or in-substance ordinary shares and that do not have readily determinable fair value, the cost method accounting is used. Investments in limited partnerships over whose operating and financing policies the Company has virtually no influence are accounted for using the cost method. Marketable equity securities were reported at fair value, classified and accounted for as available-for-sale securities prior to 2018 and its changes in fair value were previously reported in other comprehensive income. The Company assessed its available-for-sale securities for other-than-temporary impairment by considering factors including, but not limited to, its ability and intent to hold the individual security, severity of the impairment, expected duration of the impairment and forecasted recovery of fair value. Investments classified as available-for-sale securities are reported at fair value with unrealized gains or losses, if any, recorded in accumulated other comprehensive income in shareholders’ equity. If the Company determined a decline in fair value is other-than-temporary, the cost basis of the individual security was written down to fair value as a new cost basis and the amount of the write-down was accounted for as a realized loss charged to the consolidated statements of comprehensive income. The fair value of the investment would then become the new cost basis of the investment and are not adjusted for subsequent recoveries in fair value. Adoption of ASU 2016-01 Beginning January 1, 2018, the Company measures equity investments other than equity method investments at fair value through earnings. For those equity investments without readily determinable fair values, the Company elects to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Under this measurement alternative, changes in the carrying value of the equity investment will be required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The Company makes reasonable efforts to identify price changes that are known or that can reasonably be known. The marketable equity securities were reclassified as investment with readily determinable fair values beginning January 1, 2018. There will no longer be an available-for-sale classification for equity securities. Prior to the adoption of ASU 2016-01,the Company recorded investments in private equity funds without significant influence exerted by the Company under cost method. Under the new guidance, investments in private equity funds using the Net Asset Value (“NAV”) as a practical expedient under ASC 820 and are not categorized in the fair value hierarchy. Pursuant to ASC 321, for equity investments measured at fair value with changes in fair value recorded in earnings, the Company does not assess whether those securities are impaired. For equity investments without readily determinable fair value for which the Company has elected to use the measurement alternative, the Company makes a qualitative assessment of whether the investment is impaired at each reporting date, applying significant judgement in considering various factors and events including a) adverse performance of investees; b) adverse industry developments affecting investees; and c) adverse regulatory, social, economic or other developments affecting investees. If a qualitative assessment indicates that the investment is impaired, the Company estimates the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Company recognizes an impairment loss in net income equal to the difference between the carrying value and fair value. Significant judgement is applied by the Company in estimating the fair value to determine if an impairment exists, and if so, to measure the impairment losses for these equity security investments. These judgements include the selection of valuation methods in estimating fair value and the determination of key valuation assumptions used, including cash flow forecasts and critical assumptions used in cash flow forecasts. Prior to 2018, these securities were classified as available-for-sale securities and measured and recorded at fair value with unrealized changes in fair value recorded through other comprehensive income. Investments in entities which the Company can exercise significant influence and holds an investment in voting common shares or in-substance common shares (or both) of the investee but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC topic 323 (“ASC 323”), Investment — Equity Method and Joint Ventures. However, investments in entities which have preference rights and as such is not considered in-substance common shares are accounted for under the measurement alternative. Under the equity method, the Company initially records its investments at cost and the difference between the cost of the equity investee and the fair value of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill, which is included in the equity method investment on the consolidated balance sheets. The Company subsequently adjusts the carrying amount of the investments to recognize the Company’s proportionate share of each equity investee’s net income or loss into earnings after the date of investment. The Company evaluates the equity method investments for impairment under ASC 323. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined to be other-than-temporary. |
Convertible debt and unsecured senior notes | Convertible debt and unsecured senior notes The Company determines the appropriate accounting treatment of its convertible debts in accordance with the terms in relation to the conversion feature, call and put option, and beneficial conversion feature. After considering the impact of such features, the Company may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the guidance described under ASC 815 Derivatives and Hedging and ASC 470 Debt. The debt discount, if any, together with related issuance cost are subsequently amortized as interest expense over the period from the issuance date to the earliest conversion date. The Company presented the issuance cost of debt in the balance sheet as a direct deduction from the related debt. The unsecured senior notes are recognized initially at fair value, net of debt discounts or premiums, if any, issuance costs and other incidental fees, all of which are recorded as a direct deduction of the proceeds received from issuing the unsecured senior notes and the related accretion is recorded as interest expense in the consolidated statement of comprehensive income over the estimated term using the effective interest method. |
Treasury stock | Treasury stock The Company accounted for those shares repurchased and no longer outstanding as treasury stock at cost. |
Revenue recognition | Revenue recognition The Company adopted the new revenue guidance as of January 1, 2018 using the modified retrospective method. Results for reporting periods beginning on or after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting method under ASC 605. Impact on Adoption of New Revenue Recognition Pursuant to the adoption of ASC606, the main impacts are a) the presentation of VAT recognized in revenue from "gross" to "net", which results in equal decreases of revenues and cost of revenues, and b) the recognition of revenues and expenses at fair value for advertising barter transactions ("Barter Transaction"), which mainly results in the increase of revenue and advertising expenses. Under the previous guidance of ASC 605, advertising barter transactions for which the fair value of the advertising services was not determinable was recorded at the carrying amount of the advertising surrendered since the Company did not settle such barter transactions with the counterparties in cash. Under the new guidance of ASC 606, advertising barter transactions are recorded at the fair value of the advertising received by reference to the fair value of advertising services provided to other customers. Under ASC 606, revenues are recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The Company identifies its contracts with customers and all performance obligations within those contracts. The Company then determines the transaction price and allocates the transaction price to the performance obligations within the Company's contracts with customers, recognizing revenue when, or as, the Company satisfies its performance obligations when control of the promised goods or services transferred to the customers. Certain customers may receive sales rebates, which are accounted for as variable consideration. The Company estimates annual expected revenue volume of each individual agent with reference to their historical results. The Company recognizes revenue for the amount of fees it receives from its advertisers, after deducting sales rebates and net of value-added tax (“VAT”) under ASC 606. The Company believes that there will not be significant changes to its estimates of variable consideration. The following table presents the Company's revenues disaggregated by revenue source. Year Ended December 31, 2017 2018 2019 (In thousands) Portal advertising $ 320,473 $ 290,215 $ 216,440 Weibo advertising 996,745 1,499,180 1,530,211 Elimination (5,352) (110) (3,034) Advertising revenues 1,311,866 1,789,285 1,743,617 Fintech 122,535 111,412 206,780 Weibo value added services (“VAS”) 153,309 219,338 236,703 Elimination (3,826) (11,708) (24,145) Non-advertising revenues 272,018 319,042 419,338 Net revenue $ 1,583,884 $ 2,108,327 $ 2,162,955 Advertising Revenues The Company generates revenues primarily by delivering advertising on the Company's portal properties and Weibo's social media's properties. Advertising revenues are derived principally from online advertising and marketing, including display advertising and promoted marketing, and, to a lesser extent, sponsorship arrangements. The majority of the Company's revenue transactions are based on standard business terms and conditions, which are recognized net of agency rebates. Display advertising arrangements allow advertisers to place advertisements on particular areas of the Company’s websites or platform, in particular formats and over particular periods of time. Advertising revenues from display advertising arrangements are recognized ratably over the contract period of display, when the collectability is reasonably assured. The Company enters into cost per day (“CPD”) advertising arrangements with customers, under which the Company recognizes revenues ratably over the contract period. The Company also enters into cost per mille (“CPM”), or cost per thousand impressions, advertising arrangements with the customers. Promoted marketing arrangements are primarily priced based on CPM. Under the CPM model, customers are obligated to pay when the advertisement is displayed and the Company recognizes revenues based on the number of times that the advertisement has been displayed. Sponsorship arrangements allow advertisers to sponsor a particular area on its websites in exchange for a fixed payment over the contract period. Advertising revenues from sponsorship are recognized ratably over the contract period. Advertising revenues derived from the design, coordination and integration of online advertising and sponsorship arrangements to be placed on the Company’s websites are recognized ratably over the term of such arrangements. The Company’s contracts with customers may include multiple performance obligations, which primarily consist of combination of services to allow customer to place advertisements on different areas of the Company’s websites or platform. For such arrangements, advertising arrangements involving multiple deliverables are broken down into single-element arrangements based on their stand-alone selling price for revenue recognition purposes. For the deliverables that have not been sold separately, the best estimate of the stand-alone selling price is taken into consideration of the pricing of advertisings of the Company’s platform with similar characteristics and advertisements with similar formats and quoted prices from competitors and other market conditions. Revenues recognized with reference to best estimates of selling price were immaterial for all periods presented. Most of such contracts have all performance obligations completed within one year. Non-advertising Revenue Fintech services The Company offers Fintech services, which mainly consist of online loan facilitation service and online payment service. Off-balance sheet loan facilitation service The Company provides lending related service through which the Company matches lenders to borrowers and facilitates the execution of loan agreements between the lenders and the borrowers, with the terms of loan generally within one year. The Company is obligated to recommends borrowers to the lenders from certain mobile platform and to provide a credit assessment on the potential borrowers to facilitate the lenders in making their own investment decision. In light of the above, the Company determined that the Company is not the legal lender and does not record loans receivable and payable arising from the loan. The Company earns loan matching servicing fees and the post origination services from the borrowers base on an agreed fixed percentage of loan amount. The company also provides guarantee on the principal, interest payment and penalty fee of the defaulted loans to the lenders via qualified guarantee companies. Although the Company did not sell these services separately, the Company determined that all deliverables have standalone value. The Company determined that the financial guarantee is within the scope of ASC 460-10 “Guarantees” and recognized it as a separate liability at inception, with the remaining consideration recognized as revenues under ASC 606-25. The value of guarantee liability is estimated taking into consideration discounting expected future payouts, net expected loss rates and incorporating a markup margin, with a corresponding financial asset representing fees to be collected for providing the guarantee. Such financial assets were $20.7 million and $19.9 million as of December 31, 2018 and 2019, respectively, and were included in accounts receivables on the consolidated balance sheet. Subsequent to the inception of the loan, the guarantee liability initially recognized is reassessed in each period end of financial statements as the Company is released from risk under the guarantee either through expiry or cash out. Upon the occurrence of any triggering event or condition under the guarantee, the Company compensates the lenders for their principal and interest losses and obtains the recourse rights from the lender to recover the amounts paid under the guarantee. The Company considers the loan matching service and the post origination service as a multiple element revenue arrangement, and first allocates the consideration to the guarantee liability equaling to the fair value of the guarantee liability. Then the remaining consideration is allocated to the loan matching service and post-origination service using their relative estimated selling prices under ASC 606. The revenue from loan matching service is recognized when the facilitation obligation is completed, which is generally at the loan inception date. Post-origination revenue is recognized when service is provided. On-balance sheet online loan facilitation service Since January 2019, the Company set up a series trusts to issue loans to the individual borrowers recommended by the Company. The purpose of this arrangement is to expand the funding resource for the lending business. The trusts are administered by third-party trust companies, which act as the trustees, with funds contributed by the Company and/or other third-party investors for the purposes of providing returns to the beneficiary of the trusts. The company has power over the activities that most significantly impact the economic performance of the trusts and also absorbs substantially all of the variability in the trusts. Therefore, the Company has the right to receive benefits and the obligation to absorb losses from the trusts that could potentially be significant to the trusts. As a result, the trusts are considered consolidated VIEs under Accounting Standards Codification ("ASC") 810, Consolidation. The Company generates interest and financial services income from its financing receivables (Refer to Note 4 for details). Interest and financial services income is recognized over the terms of financing receivables using the effective interest method. Interest and financial services income is not recorded when reasonable doubt exists as to the full, timely collection of interest or principal. Online payment service The Company provides online payment service for Internet merchants and earns transaction fees from fund transfer transactions. Revenues resulting from these transactions are recognized when transactions are completed. Transaction fee is charged based on certain criteria (such as account type and volume of payments) for funds they receive. Weibo VAS Weibo fee-based services allow the Company’s users to subscribe to services on its websites or platform, mainly including Weibo VIP membership, living stream and game-related service. Revenues from these services are recognized when control of the promised services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Weibo VIP membership Weibo VIP membership is a service package consisting of one performance obligation of providing user certification and preferential benefits, such as daily priority listings and higher quota for following user accounts. Prepaid VIP membership fees are recorded as deferred revenue and recognized as revenue ratably over the contract period of the membership service. Live streaming Live streaming generates revenue from sales of virtual items in the live streaming platform (“Yizhibo”). Users can access the platform and view the live streaming content and interact with the broadcasters for free. The Company designs, creates and offers various virtual items for sales to users with pre-determined selling price. Each virtual item is considered as a distinctive performance obligation. Sales proceeds are recorded as deferred revenue and recognized as revenue based on the consumption of the virtual items. Users can purchase and present virtual items to broadcasters to show support for their favorite ones. Under the arrangements with broadcasters or broadcaster agencies, the Company shares with them a portion of the revenues derived from the consumption of virtual items. Revenues derived from the sale of virtual items are recorded on a gross basis as the Company has determined that it acts as the principal to fulfill all obligations related to the live streaming services. The portion paid to broadcasters and/or broadcaster agencies is recognized as cost of revenues. The Company does not have further obligations to the user after the virtual items are consumed. Game related services Game-related service revenues are mostly generated from the purchase of virtual items by game players through the Company's platform. Each virtual item is considered as a distinctive performance obligation. The Company collects payments from the game players in connection with the sale of virtual currency, which can be used to purchase virtual items in online games. Revenue is recorded on a gross basis for games that the Company is acting as the principal in fulfilling all obligations related to the games and revenue is recorded net of predetermined revenue sharing with the game developers for games in which the Company is not acting as the principal in fulfilling all obligations. Sales of virtual currencies are recognized as revenues over the estimated consumption period of in-game virtual items, which is typically from a few days to one month. Virtual currency sold for game-related services in excess of recognized revenues is recorded as deferred revenues. Contract Balances The Company enters into contracts with its customers, which may give rise to contract assets (unbilled revenue) or contract liabilities (deferred revenue). The payment terms and conditions within the Company's contracts vary by the type and location of its customer and products or services purchased, the substantial majority of which are due in less than one year. No material impact on the contract assets was arising from the new guidance of revenue recognition. Deferred revenue related to unsatisfied performance obligations at the end of the period and consist of a) the unamortized balance of license fees, which are Practical Expedients and Exemptions The Company generally expenses sales commissions when incurred because the amortization periods are generally one year or less. These costs are recorded within sales and marketing expenses. |
Allowance for doubtful accounts | Allowance for doubtful accounts The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts based on a historical, rolling average, bad debt rate in the prior year and other factors, such as credit-worthiness of the customers and the age of the receivable balances. The Company also provides specific provisions for bad debts when facts and circumstances indicate that the receivable is unlikely to be collected. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, or if the company incurs more bad debt than the original estimates, additional allowances would be required that could materially impact the Company’s financial position and results of operations. |
Cost of revenues | Cost of revenues Advertising. Non-advertising. Prior to January 1, 2018, the Company presents taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction on a gross basis in the financial statements. The Company is subject to 6.7% Value-Added Tax (“VAT” or “turnover tax”) and surcharges for its revenues and an additional 3% cultural business construction fees for its advertising and marketing revenues. Pursuant to the adoption of ASC 606 effectively beginning January 1, 2018, the Company changed the presentation of the VAT from gross basis to net against revenue, which results in equal decrease of revenues and cost of revenues. The total amounts of such taxes for 2017, 2018 and 2019 were $138.3 million, $65.7 million and $51.9 million, respectively, with VAT excluded from the cost of sales since 2018. |
Advertising expenses | Advertising expenses Advertising expenses consist primarily of costs for the promotion of corporate image, marketing expenses related to advertising barter transaction, product marketing and direct marketing. The Company expenses all advertising costs as incurred and classifies these costs under sales and marketing expenses. The Company expenses all such direct marketing expenses. Advertising expenses for 2017, 2018 and 2019 were $268.3 million, $521.4 million and $440.2 million, respectively. |
Product development expenses | Product development expenses Product development expenses consist primarily of payroll-related expenses incurred for enhancement to and maintenance of the Company’s websites as well as costs associated with new product development and product enhancements. The Company expenses all costs incurred for the planning and post implementation phases of development and costs associated with repair or maintenance of the existing site or the development of website content. Since inception, the amount of costs qualifying for capitalization has been immaterial and, as a result, all product development costs have been expensed as incurred. |
Stock-based compensation | Stock-based compensation All stock-based awards to employees and directors, including stock options and restricted share units (“RSUs”), are measured at the grant date based on the fair value of the awards. Stock-based compensation, net of forfeitures, is recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. Options granted generally vest over four years. The Company uses the Black-Scholes option pricing model to estimate the fair value of stock options. The determination of the estimated fair value of stock-based payment awards on the grant date using an option pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include the Company’s expected stock price volatility over the expected term of the awards, actual and projected employee stock option exercise behaviors, a risk-free interest rate and any expected dividends. Shares of the Company’s subsidiary, which do not have quoted market prices before they were publicly listed, were valued based on the income approach, if a revenue model had been established, or valued based on the market approach, if information from comparable companies had been available or a weighted blend of these approaches if more than one is applicable. The Company recognizes the estimated compensation cost of service-based restricted share units based on the fair value of its ordinary shares on the date of the grant. The Company recognizes the compensation cost, net of estimated forfeitures, over a vesting term of generally four years. For service-based restricted stock awards and performance-based restricted stock awards, the Company recognizes the compensation expense only when it is probable that those awards will meet the performance and service vesting condition on a straight-line basis over the requisite service period. Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option and restricted share units forfeitures and records stock-based compensation expense only for those awards that are expected to vest. See Note 17 for further discussion on stock-based compensation. |
Taxation | Taxation Income taxes Income taxes are accounted for using the asset and liability approach. Under this approach, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carry-forwards. The Company records a valuation allowance against the amount of deferred tax assets that it determines is not more-likely-than-not to be realized. Uncertain tax positions To assess uncertain tax positions, the Company applies a more likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. |
Foreign currency | Foreign currency The Company’s reporting currency and functional currency are the U.S. dollar. The Company’s operations in China and in international regions use their respective currencies as their functional currencies. The financial statements of these subsidiaries are re-measured into U.S. dollars using period-end rates of exchange for assets and liabilities and average rates of exchange in the period for revenues and expenses. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders’ equity. Translation gains or losses are not released to net income unless the associated net investment has been sold, liquidated, or substantially liquidated. Foreign currency transactions denominated in currencies other than the functional currency are re-measured into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are re-measured into the functional currency using the applicable exchange rates at the balance sheet dates. Net gains and losses resulting from foreign exchange transactions are included in interest and other income, net. Foreign currency translation adjustments included in the Company’s comprehensive income were losses of $119.6 million and $34.6 million for 2018 and 2019, respectively, and an income of $87.3 million for 2017. The Company recorded a net foreign currency transaction income of $0.8 million in 2018, and net losses of $2.0 million and $0.1 million in 2017 and 2019, respectively, which is recorded in the interest and other income, net in the consolidated statements of comprehensive income. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Comprehensive income (loss) for the periods presented includes net income (loss), net change in unrealized gains (losses) on marketable securities classified as available-for-sale (net of tax), foreign currency translation adjustments, and share of change in other comprehensive income of equity investments one |
Risks and uncertainties | Risks and uncertainties The Company's financial service business is operated under highly regulated environment with frequent new rules and regulation. The implementation and interpretations of certain new rules and regulations are unclear. Certain business arrangements of the Company's financial service business might be deemed as non-compliant with the new regulations by certain regulator. Although the Company believed it is not probable to happen, if the business arrangements were deemed by the regulator as non-compliant, the Company may need to adjust those arrangements prospectively and make other remediation for existing contracts, which may cause a negative impact to the Company's financial performance. The extent to which these adjustments may impact the Company's performance cannot be estimated at this time, but it will be limited to the financial service business. |
Recent accounting pronouncements | Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments", which will be effective for the Company in the fiscal year of 2020. The guidance replaces the incurred loss impairment methodology with an expected credit loss model for which an entity recognizes an allowance based on the estimate of expected credit loss. In November 2018, the FASB issued an amendment of Topic 326, ASU 2018-19, which clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20 and should be accounted for in accordance with Topic 842, Leases. The Company expects the initial impact of applying ASU 2016-13 on the consolidated financial statements to be an approximately $56.3 million to $68.9 million cumulative-effect adjustment to decrease the retained earnings as of January 1, 2020. The Company is currently evaluating the on-going impacts in 2020 and does not expect any material impact on the income (loss) for the first quarter of 2020 due to applying ASU 2016-13. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement," which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of the FASB's disclosure framework project. The new guidance is effective for the Company for the year ending March 31, 2021 and interim reporting periods during the year ending March 31, 2021. Early adoption is permitted for the adoption of either the entire ASU or only the provisions that eliminate or modify the requirements. The Company is evaluating the effects on its consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies | |
Schedule of consolidated balance sheets and statements of comprehensive income (loss) with intercompany transactions | As of December 31, 2018 2019 (In thousands) Total assets $ 1,142,515 $ 1,604,422 Total liabilities $ 748,354 $ 1,286,259 Year Ended December 31, 2017 2018 2019 (In thousands) Net revenues $ 1,372,419 $ 1,842,602 $ 1,943,995 Net income after intercompany service fee charge $ 35,649 $ 67,063 $ 46,838 Year Ended December 31, 2017 2018 2019 (In thousands) Net cash provided by (used in) operating activities $ (78,813) $ (84,961) $ 373 Net cash used in investing activities (70,971) (443,588) (552,829) Net cash provided by financing activities 128,730 399,182 746,979 Net increase (decrease) in cash, cash equivalents and restricted cash $ (21,054) $ (129,367) $ 194,523 |
Schedule of estimated useful lives for property and equipment | Office building - 45 years Office building related facilities - 20 years Furniture and fixtures - 5 years Computers and equipment - 3 to 4 years Leasehold improvements - over the shorter of the estimated useful lives of the assets or the remaining lease term |
Schedule of revenues disaggregated by revenue source | Year Ended December 31, 2017 2018 2019 (In thousands) Portal advertising $ 320,473 $ 290,215 $ 216,440 Weibo advertising 996,745 1,499,180 1,530,211 Elimination (5,352) (110) (3,034) Advertising revenues 1,311,866 1,789,285 1,743,617 Fintech 122,535 111,412 206,780 Weibo value added services (“VAS”) 153,309 219,338 236,703 Elimination (3,826) (11,708) (24,145) Non-advertising revenues 272,018 319,042 419,338 Net revenue $ 1,583,884 $ 2,108,327 $ 2,162,955 |
Cash, Cash Equivalents, Restr_2
Cash, Cash Equivalents, Restricted Cash and Short-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash, Cash Equivalents, Restricted Cash and Short-term Investments | |
Schedule of cash, cash equivalents, restricted cash and short-term investments | As of December 31, 2018 2019 (In thousands) Cash and cash equivalents: Cash $ 1,383,610 $ 1,907,310 Cash equivalents: Bank time deposits (maturing within 3 months) 75,367 25,625 Money market funds 86,823 18,951 162,190 44,576 1,545,800 1,951,886 Restricted cash 97,032 184,143 Total cash, cash equivalents and restricted cash $ 1,642,832 $ 2,136,029 Short-term investments: Bank time deposits $ 799,534 $ 951,953 |
Financing receivables, net (Tab
Financing receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Aging analysis of past due financing receivables | Year ended December 31, 2019 (In thousands) Days past due 1-29 $ 4,859 30-59 4,151 60-89 2,993 90-179 6,099 180 or greater 2,190 Total past due 20,292 Current 226,572 Total financing receivables $ 246,864 |
Schedule of movement of the allowance for financing receivables | Year ended December 31, 2019 (In thousands) Balance at beginning of year $ — Current period provision (20,755) Foreign exchange impact (11) Balance at end of year $ (20,766) |
Financing Receivable | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of financing receivables originated and retained by the Group | As of December 31, 2019 (In thousands) Financing receivables $ 246,864 Allowance for financing receivables (20,766) Financing receivables, net $ 226,098 |
Long-term Investments (Tables)
Long-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Investments | |
Schedule of changes in long-term investments | Available for Cost Sale Securities/ Method/Equity Equity Securities Securities With Readily Without Readily Equity Method Determinable Determinable Fair (Leju) (Others) Fair Values Values Total (In thousands) Balance at January 1, 2017 $ 199,662 $ 181,965 $ 154,289 $ 782,291 $ 1,318,207 New investments/transferred from prepayments — 26,204 10,000 132,079 168,283 Income (loss) from investments (30,796) 14,726 — — (16,070) Investment impairment (113,103) (1,207) (1,275) (6,513) (122,098) Unrealized loss, net — — (35,607) — (35,607) Disposal/dilution/refund of investments — 19,112 (22,248) (10,410) (13,546) Changes from cost method to consolidation (Note 6) — — — (29,071) (29,071) Changes from cost method to equity method — 19,121 — (19,121) — Changes from cost method to available-for-sale securities — — 2,213 (2,213) — Dividend received/entitled — (7,829) — — (7,829) Others* 1,646 5,330 — 19,571 26,547 Balance at December 31, 2017 $ 57,409 $ 257,422 $ 107,372 $ 866,613 $ 1,288,816 Impact of adoption of new investment guidance ** — — 37,686 (27,419) 10,267 New investments/transferred from prepayments — 140,379 149,140 382,031 671,550 Income (loss) from equity method investments (9,080) 10,200 — — 1,120 Investment impairment — (5,699) — (55,289) (60,988) Disposal/dilution/refund of investments — 3,235 (87,351) — (84,116) Changes from investment without readily determinable fair value to those with readily determinable fair value — — 30,000 (30,000) — Fair value change through earnings (including adjustment of subsequent observable price changes) — — (70,020) 166,553 96,533 Dividend received/entitled — (4,087) — — (4,087) Others* (186) (8,235) (891) (19,940) (29,252) Balance at December 31, 2018 $ 48,143 $ 393,215 $ 165,936 $ 1,282,549 $ 1,889,843 New investments/transferred from prepayments — 139,957 29,566 360,428 529,951 Income (loss) from equity method investments 5,080 (5,056) — — 24 Investment impairment — (38,620) — (282,819) (321,439) Disposal/dilution/refund of investments — (10,338) (20,890) (10,983) (42,211) Changes from investment without readily determinable fair value to those with readily determinable fair value — — 6,190 (6,190) — Fair value change through earnings (including adjustment of subsequent observable price changes) — — 163,454 (2,743) 160,711 Share of changes in the equity investee's capital accounts *** — 5,172 — — 5,172 Dividend received/entitled — (2,706) — — (2,706) Others* (2,609) (4,817) (7,702) (3,669) (18,797) Balance at December 31, 2019 $ 50,614 $ 476,807 $ 336,554 $ 1,336,573 $ 2,200,548 * Others mainly represents the impacts from foreign exchange change. For equity method investments, others represents the equity pick-up of other comprehensive income (loss) of investees caused by foreign exchange change. ** Upon the adoption of ASU 2016-01, $27.4 million of investments in private equity funds were adjusted to their NAV of $37.7 million and reclassified from cost method to equity investments with readily determinable fair value on January 1, 2018. *** The change of investee's capital accounts was due to sale of one equity method investee's subsidiary's share to non-controlling interests. The Company elected to record such change in an equity method investee's capital account as additional paid-in capital in its consolidated statements of shareholders' equity. |
Summary of condensed financial information | For the twelve months ended September 30, 2017 2018 2019 (In thousands) Operating data: Revenue $ 569,974 $ 888,767 $ 1,120,086 Gross profit $ 447,060 $ 562,892 $ 744,208 Income (loss) from operations $ (111,031) $ (39,854) $ 7,465 Net income (loss) $ (72,828) $ 60,972 $ (53,900) Net income (loss) attributable to the investees $ (70,913) $ 61,665 $ (53,148) As of September 30, 2018 2019 (In thousands) Balance sheet data: Current assets $ 1,045,113 $ 1,617,545 Long-term assets $ 1,455,556 $ 1,508,744 Current liabilities $ 295,372 $ 808,737 Long-term liabilities $ 32,330 $ 66,012 Non-controlling interests $ (898) $ 13,406 |
Schedule of the carrying amount and fair value of equity securities with readily determinable fair values and private equity funds | Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Other Value (In thousands) Jupai $ 23,068 $ — $ (7,119) $ — $ 15,949 Pintec 30,000 — (2,776) — 27,224 Other equity securities 74,844 4,562 (29,317) — 50,089 Private equity funds 58,246 16,277 (1,849) — 72,674 December 31, 2018 $ 186,158 $ 20,839 $ (41,061) $ — $ 165,936 Jupai $ 23,068 $ — $ (17,909) $ — $ 5,159 Pintec 30,000 — (25,268) — 4,732 Getui 6,190 195,699 — (7,619) 194,270 Other equity securities 75,442 8,467 (37,067) — 46,842 Private equity funds 66,819 18,732 — — 85,551 December 31, 2019 $ 201,519 $ 222,898 $ (80,244) $ (7,619) $ 336,554 |
Schedule of carrying value of equity securities accounted for alternative measures | As of December 31, 2018 2019 (In thousands) Initial cost basis $ 1,191,225 $ 1,535,760 Upward adjustments 166,553 162,530 Impairment (55,289) (338,108) Foreign currency translation (19,940) (23,609) Total carrying value at the end of the period $ 1,282,549 $ 1,336,573 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Yizhibo | |
Acquisitions | |
Schedule of consideration allocated on the acquisition date based on fair value of assets acquired and liabilities assumed | As of Acquisition Date (In thousands) Consideration $ 50,000 Property and equipment, net 466 Identifiable intangible assets acquired 21,942 Other tangible assets 2,874 Liabilities assumed (2,434) Goodwill 27,152 Total $ 50,000 |
Weihui | |
Acquisitions | |
Schedule of consideration allocated on the acquisition date based on fair value of assets acquired and liabilities assumed | As of acquisition date (In thousands) Consideration $ 12,222 Fair value of previously held 45% equity interest 35,119 Non-controlling interests 24,707 Total 72,048 Cash and cash equivalents 12,078 Other tangible assets 1,602 Identifiable intangible assets acquired 19,748 Liabilities assumed (2,687) Goodwill 41,307 Total $ 72,048 |
Weiju | |
Acquisitions | |
Schedule of consideration allocated on the acquisition date based on fair value of assets acquired and liabilities assumed | As of acquisition date (In thousands) Consideration $ 36,405 Non-controlling interests 18,405 Total 54,810 Tangible assets 27,423 Identifiable intangible assets acquired 5,278 Liabilities assumed (1,319) Goodwill 23,428 Total $ 54,810 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Schedule of components of lease cost | Year ended December 31, 2019 (In thousands) Operating lease cost $ 13,312 Short term lease cost 3,641 Total lease cost $ 16,953 |
Schedule of maturities of lease liabilities under operating leases | As of the end of year (In thousands) 2020 $ 13,101 2021 10,899 2022 2,593 2023 88 Thereafter — Total future lease payments 26,681 Less: imputed interest (1,449) Total lease liabilities $ 25,232 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets | |
Schedule of changes in the carrying value of goodwill by segment | The changes in the carrying value of goodwill by segment are as follows (in thousands): Weibo Fintech Total Balance as of January 1, 2017 $ 10,266 $ — $ 10,266 New acquisitions (Note 6) 2,318 64,735 67,053 Foreign exchange impact 836 3,241 4,077 Balance as of December 31, 2017 $ 13,420 $ 67,976 $ 81,396 New acquisitions (Note 6) 27,152 652 27,804 Impairment provided in 2018 (10,554) — (10,554) Foreign exchange impact (672) (3,734) (4,406) Balance as of December 31, 2018 $ 29,346 $ 64,894 $ 94,240 Foreign exchange impact (357) (790) (1,147) Balance as of December 31, 2019 $ 28,989 $ 64,104 $ 93,093 |
Schedule of intangible assets arising from acquisitions and land use rights | As of December 31, 2018 As of December 31, 2019 Accumulated Accumulated Accumulated Accumulated Cost Amortization Impairment Net Cost Amortization Impairment Net (In thousands) (In thousands) Land use rights $ 202,340 $ (2,341) $ — $ 199,999 $ 199,879 $ (6,315) $ — $ 193,564 Technology 44,342 (22,747) (11,598) 9,997 43,936 (24,412) (11,457) 8,067 Supplier-relationship 9,738 (495) — 9,243 9,619 (2,444) — 7,175 Trademark and Domain name 5,623 (147) — 5,476 5,555 (724) — 4,831 Software 1,859 (1,859) — — 1,858 (1,858) — — Others 11,275 (5,998) (4,657) 620 11,139 (5,969) (4,600) 570 Total $ 275,177 $ (33,587) $ (16,255) $ 225,335 $ 271,986 $ (41,722) $ (16,057) $ 214,207 |
Schedule of estimated amortization expenses | Year Ended December 31, (In thousands) 2020 $ 8,384 2021 8,344 2022 7,835 2023 6,680 2024 and thereafter 182,434 Total expected amortization expense* $ 213,677 * The table above excludes $0.5 million of indefinite lived intangible assets which was included in the category of Others. |
Funding debts (Tables)
Funding debts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Funding debts | |
Debt Instrument [Line Items] | |
Schedule of outstanding funding debts | The following table summarized the Company’s outstanding funding debts as of December 31, 2019 (in thousands): Less than One One to More than Total Year Two Years Two Years Short-term funding debts $ 173,821 $ 173,821 $ — $ — Long-term funding debt 22,260 — 22,260 — Total $ 196,081 $ 173,821 $ 22,260 $ — |
Investment in Weibo (Tables)
Investment in Weibo (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investment in Weibo | |
Schedule of share ownership of Weibo on an if converted basis | As of December 31, 2019, the share ownership of Weibo was as follows: Ownership Voting Shareholder Name Shares Type Percentage Power* SINA Class B Ordinary shares 45.0 % 71.0 % Alibaba Class A Ordinary shares 30.0 % 15.8 % Others Class A Ordinary shares 25.0 % 13.2 % Total 100.0 % 100.0 % * Class A ordinary shares are entitled to one vote per share and Class B ordinary shares, which the Company holds, are entitled to three votes per share. |
Non-controlling interests (Tabl
Non-controlling interests (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Non-controlling interests | |
Summary of non-controlling interests | As of December 31, 2018 2019 (In thousands) Weibo $ 969,803 $ 1,279,707 Others 75,278 (20,275) Total $ 1,045,081 $ 1,259,432 |
Other Balance Sheet Components
Other Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Balance Sheet Components | |
Schedule of other balance sheet components | As of December 31, 2017 2018 2019 (In thousands) Accounts receivable, net: Accounts receivable $ 555,861 $ 662,296 Allowance for doubtful accounts: Balance at the beginning of year $ (14,068) (20,214) (27,964) Additional provision charged to expenses (8,465) (15,424) (50,313) Write-off 2,319 7,674 17,857 Balance at the end of year $ (20,214) $ (27,964) $ (60,420) $ 527,897 $ 601,876 Prepaid expenses and other current assets: Loans to and interest receivables from investees (Note 13) $ 102,708 $ 332,971 FVO Loan Investment 1 — 121,131 Secured loan to a founder of a related party 2 80,000 80,000 Prepayments to investees 3 89,163 51,008 Rental and other operation deposits 9,842 28,190 Amounts deposited by Weibo users 4 30,631 34,912 Content fees and revenue share 14,769 17,992 Advertising and marketing fees 4,742 5,124 Deductible value added tax 10,304 9,127 Others 20,276 15,433 $ 362,435 $ 695,888 Property and equipment, net: Office building $ 197,337 $ 194,936 Office building related facilities 3,308 3,268 Computers and equipment 217,335 218,446 Leasehold improvements 17,328 18,131 Furniture and fixtures 11,558 11,529 Other 2,996 2,742 449,862 449,052 Less: Accumulated depreciation (187,016) (195,873) $ 262,846 $ 253,179 1 million of one loan investment in a special purpose entity with maturity within one year. The loan investment had a variable interest rate depending on the underlying assets’ performance, and the Company elected to account for the loan investment using fair value option(“FVO Loan Investment”), with subsequent fair value change recorded in fair value changes through earnings on investments, net, from which 2 The Company issued a one-year loan of $100 million to a founder of a related party in August 2016 with an annual interest rate of 5% . $20 million was repaid as of December 31, 2017 and the remaining were extended to August 15, 2018, August 15, 2019 and then August 15, 2020, with an annual interest rate of 7.5% . As of December 31, 2019, the loan was fully secured by an RMB deposits (equivalent to $79.3 million) and mortgaged shares of the related party provided by its founder as of December 31, 2019. 3 4 Other assets: Investment related deposits $ 46,777 $ 33,641 Deferred tax assets 23,213 25,400 Deposits for land use rights 6,321 6,244 Others 4,816 5,800 $ 81,127 $ 71,085 Accrued expenses and other current liabilities: Accrued sales rebates $ 149,371 $ 196,319 Accrued payroll related expenses (including sales commission) 117,562 128,290 Litigation reserve (Note 22) — 125,809 Advertising and marketing expenses 83,893 94,289 Guarantee liabilities (Note 20) 10,952 43,677 Deposit for secured loan 2 43,614 79,274 Turnover tax 44,280 57,764 Amounts due to Weibo users 3 30,631 34,912 Employee reimbursement 8,934 10,165 Professional fee 10,014 18,329 Unpaid consideration for acquisitions and investment 10,055 30,054 Interest payable of Weibo convertible debt and senior notes 1,500 15,344 Others 30,001 52,487 $ 540,807 $ 886,713 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions | |
Schedule of significant related parties and their relationships with the Company | Name of related parties Relationship with the Company Leju and its subsidiaries (“Leju”) An investee of the Company Alibaba and its subsidiaries (“Alibaba”) Strategic partner and significant shareholder of Weibo New Wave MMXV Limited (“New Wave”) An entity controlled by Mr. Charles Chao |
Schedule of transactions and balances with related parties | The Company entered into the following transactions with related parties: Year ended December 31, Transactions 2017 2018 2019 (In thousands) Revenues: License revenue from Leju 1 $ 10,435 $ 10,435 $ 10,435 Agency and advertising service earned from Leju 1 16,091 20,754 19,154 Promotion and advertising service to Alibaba 2 91,724 126,882 100,439 Others 3 94,107 160,184 122,993 $ 212,357 $ 318,255 $ 253,021 Other related parties mainly include investee companies over on which the Company has significant influence. These investees are mainly high-tech companies operating in different internet-related industries, such as online advertising agency, short video applications, social and new media marketing services and so on. 1 . Accordingly, the remaining deferred revenue balance as of March 2014 will be amortized prospectively under the straight-line method until 2024. For the years ended December 31, 2017, 2018 and 2019, the Company recorded 2 3 (b) Balances with related parties The Company had the following balances with related parties: As of December 31, 2018 2019 (In thousands) Accounts receivable from related parties: $ 189,522 $ 174,080 -Accounts receivable from Leju $ 4,905 $ 7,124 -Accounts receivable from Alibaba $ 53,480 $ 61,857 -Accounts receivable from other related parties 1 $ 131,137 $ 105,099 Loans to and interest receivables from related parties 2 $ 102,409 $ 320,221 -Company A (an investee in e-commerce business) $ 43,695 $ 160,010 -Company B (an investee providing social and new media marketing services) $ — $ 60,602 -Company C (an investee providing online brokerage services) $ 40,982 $ 40,982 -Others $ 17,732 $ 58,627 Prepayment to related parties $ 13,567 $ — Deferred revenues in relation to License Agreement with Leju $ 54,087 $ 43,652 Account payable to related parties $ 50,678 $ 46,655 Accrued and other liabilities to related parties 1 $ 14,763 $ 39,836 1 2 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Schedule of components of income before income taxes | Year Ended December 31, 2017 2018 2019 (In thousands, except percentage) Income before income tax expense $ 424,239 $ 555,410 $ 255,192 Loss from non-China operations $ (79,945) $ (143,680) $ (508,580) Income from China operations $ 504,184 $ 699,090 $ 763,772 Income tax expense applicable to China operations $ 73,165 $ 129,406 $ 146,283 Effective tax rate for China operations 15 % 19 % 19 % |
Schedule of current and deferred portion of income tax expenses | Year Ended December 31, 2017 2018 2019 (In thousands) Current tax provision $ 76,379 $ 95,846 $ 99,481 Deferred tax (benefits) provision (3,214) 33,560 46,802 Income tax expense $ 73,165 $ 129,406 $ 146,283 |
Schedule of reconciliation between the statutory EIT rate and the effective tax rate | Year Ended December 31, 2017 2018 2019 Statutory EIT rate 25 % 25 % 25 % Effect on tax holiday and preferential tax rate 1 (11) % (11) % (13) % Permanent differences (1) % 1 % 2 % Change in valuation allowance 2 % 4 % 5 % Effective tax rate for China operations 15 % 19 % 19 % 1 |
Schedule of effect of tax holiday related to China operations | Year Ended December 31, 2017 2018 2019 (In thousands, except per share amount) Tax holiday effect $ 56,377 $ 76,246 $ 100,616 Basic net income per share effect $ 0.79 $ 1.08 $ 1.44 Diluted net income per share effect $ 0.76 $ 1.05 $ 1.44 |
U.S. | |
Income Taxes | |
Schedule of significant components of deferred tax assets and liabilities | As of December 31, 2018 2019 (In thousands) Deferred tax assets: Net operating loss carry-forwards $ 30,484 $ 29,226 Other tax credits, allowances for doubtful accounts, accruals and other liabilities 539 514 Total deferred tax assets 31,023 29,740 Less: valuation allowance (31,023) (29,740) Deferred tax assets, net $ — $ — |
Hong Kong | |
Income Taxes | |
Schedule of significant components of deferred tax assets and liabilities | As of December 31, 2018 2019 (In thousands) Deferred tax assets: Net operating loss carry-forwards $ 6,023 $ 8,070 Less: valuation allowance (6,023) (8,070) Deferred tax assets $ — $ — |
China | |
Income Taxes | |
Schedule of significant components of deferred tax assets and liabilities | As of December 31, 2018 2019 (In thousands) Deferred tax assets: Allowances for doubtful accounts $ 24,267 $ 35,202 Net operating loss carry forwards 31,016 44,970 Investment impairment 32,797 44,397 Accruals and others 22,212 26,261 Total deferred tax assets 110,292 150,830 Less: valuation allowance (87,079) (125,430) Net deferred tax assets $ 23,213 $ 25,400 Deferred tax liabilities: Depreciation $ (821) $ (1,102) Investment gain (40,781) (88,113) Acquired intangible assets (3,213) (2,430) Others (6,278) (6,482) Total deferred tax liabilities $ (51,093) $ (98,127) |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net Income (Loss) Per Share | |
Schedule of basic and diluted net income per share | Year Ended December 31, 2017 2018 2019 (In thousands, except per share amounts) Basic net income (loss) per share calculation: Numerator: Net income (loss) attributable to SINA’s ordinary shareholders $ 156,569 $ 125,562 $ (70,542) Denominator: Weighted average ordinary shares outstanding 71,284 70,296 69,640 Basic net income (loss) per share $ 2.20 $ 1.79 $ (1.01) Diluted net income (loss) per share calculation: Numerator: Net income (loss) attributable to SINA’s ordinary shareholders $ 156,569 $ 125,562 $ (70,542) Less: Effect on consolidated net income per share of dilutive shares of the Company’s equity interests 3,915 3,699 956 Add: Effect on interest expenses and amortized issuance cost of convertible debt 1,531 1,403 — Net income (loss) attributable for calculating diluted net income per share 154,185 123,266 (71,498) Denominator: Weighted average ordinary shares outstanding 71,284 70,296 69,640 Weighted average ordinary shares equivalents: Effects of dilutive securities Stock options 94 87 — Unvested restricted share units 1,172 683 — Convertible debt 1,381 1,309 — Shares used in computing diluted net income (loss) per share attributable to SINA 73,931 72,375 69,640 Diluted net income (loss) per share $ 2.09 $ 1.70 $ (1.03) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Shareholders' Equity | |
Schedule of stock-based compensation | Year Ended December 31, 2017 2018 2019 (In thousands) Costs of revenues $ 9,257 $ 10,128 $ 11,859 Sales and marketing 20,790 21,942 24,499 Product development 29,163 30,830 38,991 General and administrative 32,177 32,169 46,522 $ 91,387 $ 95,069 $ 121,871 |
Summary of number of shares available for issuance | Shares Available (In thousands) January 1, 2017 3,346 Granted* (673) Cancelled/forfeited 320 Expired (85) December 31, 2017 2,908 Granted* (2,456) Cancelled/forfeited 128 Expired (13) December 31, 2018 567 Authorized 3,478 Granted* (1,354) Cancelled/forfeited 261 Expired — December 31, 2019 2,952 * In 2017, 2018 and 2019, 385,000, 1,404,000 and 1,019,000 restricted shares units, or 673,000, 2,456,000 and 1,354,000 equivalent option shares, respectively, were granted. |
Summary of option activities under the Company' stock option program | Weighted Average Options Weighted Average Remaining Aggregate Outstanding Exercise Price Contractual Life Intrinsic Value (In thousands) (In years) (In thousands) January 1, 2017 234 $ 38.41 3.63 $ 5,226 Exercised (26) $ 35.69 Cancelled/expired/forfeited (18) $ 37.61 December 31, 2017 190 $ 38.86 2.56 $ 11,693 Exercised (34) $ 43.85 Cancelled/expired/forfeited (1) $ 35.69 December 31, 2018 155 $ 37.75 1.93 $ 2,467 Exercised — $ 35.69 Cancelled/expired/forfeited — $ — December 31, 2019 155 $ 37.75 0.93 $ 338 Vested and expected to vest as of December 31, 2018 155 $ 37.75 1.93 $ 2,467 Exercisable as of December 31, 2018 153 $ 37.77 1.93 $ 2,435 Vested and expected to vest as of December 31, 2019 155 $ 37.75 0.93 $ 338 Exercisable as of December 31, 2019 155 $ 37.75 0.93 $ 338 |
Schedule of stock options outstanding | Weighted Weighted Weighted Average Options Average Options Average Remaining Range of Exercise Prices Outstanding Exercise Price Exercisable Exercise Price Contractual Life (In thousands) (In thousands) (In years) As of December 31, 2018 $35.69 - $35.69 31 $ 35.69 29 $ 35.69 2.04 $38.27 - $38.27 124 $ 38.27 124 $ 38.27 1.90 155 $ 37.75 153 $ 37.77 1.93 As of December 31, 2019 $35.69 - $35.69 31 $ 35.69 31 $ 35.69 1.04 $38.27 - $38.27 124 $ 38.27 124 $ 38.27 0.90 155 $ 37.75 155 $ 37.75 0.93 |
Shareholders' Equity | |
Schedule of stock-based compensation | Year Ended December 31, 2017 2018 2019 (In thousands) Cost of revenues $ 3,716 $ 3,522 $ 5,251 Sales and marketing 8,264 6,837 9,828 Product development 21,879 21,187 28,628 General and administrative 14,178 9,465 17,582 $ 48,037 $ 41,011 $ 61,289 |
Summary of number of shares available for issuance | Shares Available (In thousands) January 1, 2017 18,878 Granted (736) Cancelled/expired/forfeited 398 December 31, 2017 18,540 Granted (1,597) Cancelled/expired/forfeited 350 December 31, 2018 17,293 Granted (2,411) Cancelled/expired/forfeited 222 December 31, 2019 15,104 |
Summary of option activities under the Company' stock option program | Weighted Average Options Weighted Average Remaining Aggregate Outstanding Exercise Price Contractual Life Intrinsic Value (In thousands) (In years) (In thousands) January 1, 2017 2,587 $ 1.41 1.6 $ 101,403 Exercise (2,122) $ 1.04 Cancelled/expired/forfeited (28) $ 0.68 December 31, 2017 437 $ 3.24 2.0 $ 43,800 Exercise (248) $ 3.14 Cancelled/expired/forfeited (5) $ 1.16 December 31, 2018 184 $ 3.45 1.5 $ 10,089 Exercise (95) $ 3.41 Cancelled/expired/forfeited — $ — December 31, 2019 89 $ 3.49 0.7 $ 3,799 Vested and expected to vest as of December 31, 2018 184 $ 3.45 1.5 $ 10,089 Exercisable as of December 31, 2018 184 $ 3.45 1.5 $ 10,089 Vested and expected to vest as of December 31, 2019 89 $ 3.49 0.7 $ 3,799 Exercisable as of December 31, 2019 89 $ 3.49 0.7 $ 3,799 |
Schedule of stock options outstanding | Weighted Weighted Weighted Average Options Average Options Average Remaining Range of Exercise Prices Outstanding Exercise Price Exercisable Exercise Price Contractual Life (In thousands) (In thousands) (In years) As of December 31, 2018 $ 3.25 - $3.36 32 $ 3.30 32 $ 3.30 0.8 $ 3.43 - $3.50 152 $ 3.48 152 $ 3.48 1.7 184 $ 3.45 184 $ 3.45 1.5 As of December 31, 2019 $ 3.43 - $3.50 89 $ 3.49 89 $ 3.49 0.7 89 $ 3.49 89 $ 3.49 0.7 |
Service-based restricted share units | |
Shareholders' Equity | |
Schedule of restricted share unit activity | Weighted-Average Grant Date Shares Granted Fair Value (In thousands) January 1, 2017 2,405 $ 45.47 Awarded* 365 $ 75.05 Vested (905) $ 45.45 Cancelled/forfeited (165) $ 44.57 December 31, 2017 1,700 $ 51.92 Awarded* 1,383 $ 77.67 Vested (874) $ 48.44 Cancelled/forfeited (64) $ 57.78 December 31, 2018 2,145 $ 69.76 Awarded* 999 $ 46.61 Vested (900) $ 63.56 Cancelled/forfeited (145) $ 72.33 December 31, 2019 2,099 $ 61.23 * 20,000, 25,000 and 25,000 RSUs were granted to non-employee directors in 2017, 2018 and 2019, respectively. |
Service-based restricted share units | Weibo | |
Shareholders' Equity | |
Schedule of restricted share unit activity | Weighted-Average Shares Grant Date Granted Fair Value (In thousands) As at January 1, 2017 5,458 $ 17.23 Awarded 581 $ 62.87 Vested (2,406) $ 17.01 Cancelled/forfeited (366) $ 17.72 As at December 31, 2017 3,267 $ 25.45 Awarded 1,406 $ 68.18 Vested (1,757) $ 21.59 Cancelled/forfeited (160) $ 44.00 As at December 31, 2018 2,756 $ 48.62 Awarded 2,313 $ 45.49 Vested (1,374) $ 37.60 Cancelled/forfeited (183) $ 48.48 As at December 31, 2019 3,512 $ 50.89 |
Performance-based RSU | |
Shareholders' Equity | |
Schedule of restricted share unit activity | Weighted-Average Grant Date Shares Granted Fair Value (In thousands) January 1, 2017 18 $ 47.47 Awarded 19 $ 65.18 Vested (15) $ 47.47 Cancelled/forfeited (8) $ 58.51 December 31, 2017 14 $ 65.18 Awarded 21 $ 102.88 Vested (12) $ 65.18 Cancelled/forfeited (11) $ 98.10 December 31, 2018 12 $ 101.86 Awarded 21 $ 67.35 Vested (7) $ 102.69 Cancelled/forfeited (15) $ 78.72 December 31, 2019 11 $ 67.35 |
Performance-based RSU | Weibo | |
Shareholders' Equity | |
Schedule of restricted share unit activity | Weighted-Average Grant Date Shares Granted Fair Value (In thousands) January 1, 2017 108 $ 27.00 Awarded 155 $ 50.45 Vested (102) $ 27.00 Cancelled/forfeited (32) $ 46.42 December 31, 2017 129 $ 50.32 Awarded 191 $ 86.63 Vested (126) $ 50.32 Cancelled/forfeited (190) $ 86.90 December 31, 2018 4 $ 87.14 Awarded 98 $ 64.33 Vested (4) $ 87.14 Cancelled/forfeited (39) $ 69.14 December 31, 2019 59 $ 61.17 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information | |
Summary information by segment | For the Year Ended December 31, 2017 : Portal advertising Fintech 1 Subtotal Weibo Elimination 2 Total (In thousands, except percentages) Net revenues $ 320,473 $ 122,535 $ 443,008 $ 1,150,054 $ (9,178) $ 1,583,884 - Advertising 320,473 — 320,473 996,745 (5,352) 1,311,866 - Non-advertising — 122,535 122,535 153,309 (3,826) 272,018 Costs of revenues 121,278 65,733 187,011 231,255 (4,129) 414,137 Gross margin 62 % 46 % 58 % 80 % 74 % Operating expenses: Sales and marketing $ 138,368 $ 275,537 $ (5,049) $ 408,856 Product development 73,999 193,393 — 267,392 General and administrative 62,608 42,315 — 104,923 Total operating expenses $ 274,975 $ 511,245 $ (5,049) $ 781,171 Income (loss) from operations (18,978) 407,554 — 388,576 Interest and other income, net 29,436 13,260 42,696 Income (loss) from equity method investments, net (17,100) 1,030 (16,070) Realized gain on long-term investments 131,993 14 132,007 Investment related impairment (118,223) (4,747) (122,970) Income before income tax expense 7,128 417,111 424,239 Income tax expense (7,930) (66,746) (74,676) Net income (loss) $ (802) $ 350,365 $ 349,563 For the Year Ended December 31 , 2018: Portal advertising Fintech 1 Subtotal Weibo Elimination 2 Total (In thousands, except percentages) Net revenues $ 290,215 $ 111,412 $ 401,627 $ 1,718,518 $ (11,818) $ 2,108,327 - Advertising 290,215 — 290,215 1,499,180 (110) 1,789,285 - Non-advertising — 111,412 111,412 219,338 (11,708) 319,042 Costs of revenues 117,600 68,500 186,100 277,648 (11,708) 452,040 Gross margin 59 % 39 % 54 % 84 % 79 % Operating expenses: Sales and marketing $ 172,648 $ 527,424 $ (110) $ 699,962 Product development 96,069 249,873 — 345,942 General and administrative 76,429 43,755 — 120,184 Goodwill and acquired intangibles impairment 12,691 10,554 — 23,245 Total operating expenses $ 357,837 $ 831,606 $ (110) $ 1,189,333 Income (loss) from operations (142,310) 609,264 — 466,954 Interest and other income, net 25,547 43,808 69,355 Income (loss) from equity method investments, net 1,063 57 1,120 Realized gain (loss) on long-term investments 3,016 (287) 2,729 Fair value changes through earnings on investments, net 56,459 40,074 96,533 Investment related impairment (57,207) (24,074) (81,281) Income (loss)before income tax expense (113,432) 668,842 555,410 Income tax expense (32,862) (96,222) (129,084) Net income (loss) $ (146,294) $ 572,620 $ 426,326 1 2 For the Year Ended December 31, 2019 : Portal advertising Fintech 1 Subtotal Weibo Elimination 2 Total (In thousands, except percentages) Net revenues $ 216,440 $ 206,780 $ 423,220 $ 1,766,914 $ (27,179) $ 2,162,955 - Advertising 216,440 — 216,440 1,530,211 (3,034) 1,743,617 - Non-advertising — 206,780 206,780 236,703 (24,145) 419,338 Costs of revenues 90,071 98,676 188,747 328,826 (24,145) 493,428 Gross margin 58 % 52 % 55 % 81 % 77 % Operating expenses: Sales and marketing $ 165,684 $ 465,339 $ (3,034) $ 627,989 Product development 88,374 284,444 — 372,818 General and administrative 207,720 90,721 — 298,441 Total operating expenses $ 461,778 $ 840,504 $ (3,034) $ 1,299,248 Income (loss) from operations (227,305) 597,584 — 370,279 Interest and other income, net 4,157 59,896 64,053 Income (loss) from equity method investments, net 13,222 (13,198) 24 Realized gain (loss) on long-term investments (3,022) 612 (2,410) Fair value changes through earnings on investments, net (42,143) 207,438 165,295 Investment related impairment (92,114) (249,935) (342,049) Income (loss) before income tax expense (347,205) 602,397 255,192 Income tax expense (36,901) (109,564) (146,465) Net income (loss) $ (384,106) $ 492,833 $ 108,727 |
Schedule of geographic operations | PRC International Total (In thousands) Year ended and as of December 31, 2017: Net revenues $ 1,571,035 $ 12,849 $ 1,583,884 Long-lived assets $ 285,208 $ 279 $ 285,487 Year ended and as of December 31, 2018: Net revenues $ 2,096,179 $ 12,148 $ 2,108,327 Long-lived assets $ 487,844 $ 337 $ 488,181 Year ended and as of December 31, 2019: Net revenues $ 2,154,529 $ 8,426 $ 2,162,955 Long-lived assets $ 466,727 $ 659 $ 467,386 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments | |
Schedule of financial instruments, measured at fair value, by level within the fair value hierarchy | Fair Value Measurements (In thousands) Quoted Prices in Active Market Significant Other Significant for Identical Assets Observable Inputs Unobservable Inputs Total (Level 1) (Level 2) (Level 3) As of December 31, 2018 Assets Money market funds 1 $ 86,823 $ 86,823 $ — $ — Bank time deposits 2 874,901 — 874,901 — Equity securities with readily determinable fair value 3 93,262 93,262 — — Total $ 1,054,986 $ 180,085 $ 874,901 $ — Liabilities Guarantee liabilities $ 10,952 $ — $ — $ 10,952 As of December 31, 2019 Assets Money market funds 1 $ 18,951 $ 18,951 $ — $ — Bank time deposits 2 977,578 — 977,578 — FVO Loan Investment 4 121,131 — — 121,131 Equity securities with readily determinable fair value 3 251,003 251,003 — — Total $ 1,368,663 $ 269,954 $ 977,578 $ 121,131 Liabilities Guarantee liabilities $ 43,677 $ — $ — $ 43,677 1 2 3 4 |
Schedule of guarantee liability movement activities | Year ended December 31, 2018 2019 (In thousands) Balance at the beginning of year $ 10,143 $ 10,952 Provision at the inception of new loans 39,291 70,120 Payment for the guarantee (37,082) (34,507) Subsequent adjustments to the provisions (792) (2,452) Foreign exchange impacts (608) (436) Balance at the end of the year $ 10,952 $ 43,677 |
Schedule of concentration risk, by customers with more than 10% of the Company's net accounts receivable | As of December 31, 2018 2019 Customer Customer A 10 % 10 % Customer B 13 % 18 % Customer C 15 % * * Less than 10% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Schedule of future minimum rental payments | Less than One One to Three to More than Total Year Three Years Five Years Five Years (In thousands) Operating lease commitments $ 26,681 $ 13,101 $ 13,492 $ 88 $ — |
Schedule of purchase commitments | Purchase commitments as of December 31, 2019 were as follows: Less than One One to Three to More than Total Year Three Years Five Years Five Years (In thousands) Purchase commitments $ 626,477 $ 591,330 $ 35,084 $ 63 $ — Capital commitments $ 5,587 $ 5,025 $ 562 $ — $ — |
Schedule of other commitments | Less than One One to Three to More than Total Year Three Years Five Years Five Years (In thousands) 2022 Notes $ 933,750 $ 11,250 $ 922,500 $ — $ — 2024 Notes 940,000 28,000 56,000 856,000 — Short-term bank loans 82,929 82,929 — — — Funding debts and interests 197,132 174,872 22,260 — — Litigation reserve 125,809 125,809 — — — Equity investments 115,022 115,022 — — — Total other commitments $ 2,394,642 $ 537,882 $ 1,000,760 $ 856,000 $ — |
Significant Accounting Polici_4
Significant Accounting Policies - Basis of presentation and use of estimates (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2019 | Jan. 01, 2019 |
Basis of presentation and use of estimates | |||
Right-of use asset | $ 24,872 | $ 36,700 | |
Lease liability | $ 25,232 | $ 37,500 | |
ASU 2016-01 | |||
Basis of presentation and use of estimates | |||
Reclassification from AOCI to retained earnings | $ 38,700 |
Significant Accounting Polici_5
Significant Accounting Policies - Consolidated VIEs (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)shareholdersubsidiary | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
VIEs | ||||
Interest-free loans to nominee shareholders of VIEs | $ 292,700,000 | $ 294,900,000 | ||
Aggregate accumulated (loss) income | 79,000,000 | 32,200,000 | ||
Assets and liabilities of the VIEs and their subsidiaries | ||||
Total assets | 7,468,828,000 | 5,886,089,000 | ||
Total liabilities | 3,570,915,000 | 2,123,217,000 | ||
Results of operations of the VIEs and their subsidiaries | ||||
Net revenues | 2,162,955,000 | 2,108,327,000 | $ 1,583,884,000 | |
Net income (loss) | 108,727,000 | 426,326,000 | 349,563,000 | |
Net increase (decrease) in cash and cash equivalents | ||||
Net cash provided by (used in) operating activities | 744,018,000 | 311,037,000 | 596,290,000 | |
Net cash used in investing activities | (1,176,258,000) | (447,909,000) | (987,947,000) | |
Net cash provided by financing activities | 933,244,000 | (408,514,000) | 886,970,000 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 493,197,000 | (563,871,000) | 557,772,000 | |
Restricted cash | 184,143,000 | 97,032,000 | ||
Accrued expenses and other current liabilities | 886,713,000 | 540,807,000 | ||
Amount due to customers related to SINA Pay | 121,558,000 | 97,032,000 | ||
Income taxes payable | 129,591,000 | 115,725,000 | ||
Short-term bank loans | 81,649,000 | 78,229,000 | ||
Short-term operating lease liabilities | 12,151,000 | |||
Long-term operating lease liabilities | $ 13,081,000 | |||
Number of wholly owned subsidiaries established to engage directly in advertising business | subsidiary | 2 | |||
Service fees revenue charged by wholly owned subsidiaries | $ 951,000,000 | 985,600,000 | 784,800,000 | |
Consolidated VIEs | ||||
Assets and liabilities of the VIEs and their subsidiaries | ||||
Total assets | 1,604,422,000 | 1,142,515,000 | ||
Total liabilities | 1,286,259,000 | 748,354,000 | ||
Results of operations of the VIEs and their subsidiaries | ||||
Net revenues | 1,943,995,000 | 1,842,602,000 | 1,372,419,000 | |
Net income (loss) | 46,838,000 | 67,063,000 | 35,649,000 | |
Net increase (decrease) in cash and cash equivalents | ||||
Net cash provided by (used in) operating activities | 373,000 | (84,961,000) | (78,813,000) | |
Net cash used in investing activities | (552,829,000) | (443,588,000) | (70,971,000) | |
Net cash provided by financing activities | 746,979,000 | 399,182,000 | 128,730,000 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 194,523,000 | $ (129,367,000) | $ (21,054,000) | |
Cash, cash equivalents and short-term investments | 276,100,000 | 184,600,000 | ||
Restricted cash | 184,100,000 | 97,000,000 | ||
Accrued expenses and other current liabilities | 662,000,000 | 400,700,000 | ||
Amount due to customers related to SINA Pay | 121,600,000 | 97,000,000 | ||
Income taxes payable | 42,100,000 | 31,500,000 | ||
Deferred revenues | 94,900,000 | 97,800,000 | ||
Short-term bank loans | 51,600,000 | 59,200,000 | ||
Short-term funding debts | 173,800,000 | 173,800,000 | ||
Short-term operating lease liabilities | 4,200,000 | 4,200,000 | ||
Long-term funding debts | 22,300,000 | 22,300,000 | ||
Long-term operating lease liabilities | 4,500,000 | 4,500,000 | ||
Assets, except for registered capital and PRC statutory reserves of VIEs, that can only be used to settle obligations of the respective VIEs | 0 | |||
Registered capital and PRC statutory reserves of VIEs | $ 376,300,000 | $ 374,200,000 | ||
Term of loan agreements (in years) | 10 years | |||
Period of due date of the last guaranteed debt (in years) | 3 years | |||
Term of trademark license agreements (in years) | 1 year | |||
ICP Company | ||||
Net increase (decrease) in cash and cash equivalents | ||||
Number of nominee shareholder who hold ownership interest in VIEs | shareholder | 4 | |||
Registered capital | $ 121,700,000 | |||
StarVI | ||||
Net increase (decrease) in cash and cash equivalents | ||||
Number of nominee shareholder who hold ownership interest in VIEs | shareholder | 3 | |||
Registered capital | $ 1,200,000 | |||
IAD Company | ||||
Net increase (decrease) in cash and cash equivalents | ||||
Number of nominee shareholder who hold ownership interest in VIEs | shareholder | 2 | |||
Registered capital | $ 24,800,000 | |||
Weimeng | ||||
Net increase (decrease) in cash and cash equivalents | ||||
Number of nominee shareholder who hold ownership interest in VIEs | shareholder | 4 | |||
Registered capital | $ 84,900,000 | |||
Weibo Interactive | ||||
Net increase (decrease) in cash and cash equivalents | ||||
Registered capital | 8,700,000 | |||
SINA Pay | ||||
Net increase (decrease) in cash and cash equivalents | ||||
Registered capital | 15,700,000 | |||
Weiju | ||||
Net increase (decrease) in cash and cash equivalents | ||||
Registered capital | $ 3,700,000 |
Significant Accounting Polici_6
Significant Accounting Policies - Short-term bank loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term bank loans | $ 81,649 | $ 78,229 |
Minimum | ||
Interest rate (as a percent) | 4.40% | 4.40% |
Maximum | ||
Interest rate (as a percent) | 4.80% | 4.80% |
Significant Accounting Polici_7
Significant Accounting Policies - Restricted cash and amount due to customers (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Significant Accounting Policies | ||
Restricted cash | $ 184,143 | $ 97,032 |
Significant Accounting Polici_8
Significant Accounting Policies - Funding debts (Details) $ in Millions | Dec. 31, 2019USD ($) |
Significant Accounting Policies | |
Accrued interest payable | $ 1.1 |
Significant Accounting Polici_9
Significant Accounting Policies - Long-lived assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property and equipment | |||
Amortization of intangible assets | $ 8,500,000 | $ 9,100,000 | $ 4,600,000 |
Depreciation expenses | 36,155,000 | 32,122,000 | 28,642,000 |
Impairment charges of intangible assets | $ 0 | $ 12,700,000 | $ 0 |
Office building | |||
Property and equipment | |||
Estimated useful lives of assets | 45 years | 45 years | |
Office building related facilities | |||
Property and equipment | |||
Estimated useful lives of assets | 20 years | 20 years | |
Furniture and fixtures | |||
Property and equipment | |||
Estimated useful lives of assets | 5 years | 5 years | |
Land use rights | |||
Property and equipment | |||
Estimated useful lives of intangible assets | 50 years | 50 years | |
Amortization of intangible assets | $ 4,000,000 | $ 2,400,000 | |
Minimum | |||
Property and equipment | |||
Estimated useful lives of intangible assets | 1 year | ||
Minimum | Computers and equipment | |||
Property and equipment | |||
Estimated useful lives of assets | 3 years | ||
Maximum | |||
Property and equipment | |||
Estimated useful lives of intangible assets | 10 years | ||
Maximum | Computers and equipment | |||
Property and equipment | |||
Estimated useful lives of assets | 4 years |
Significant Accounting Polic_10
Significant Accounting Policies - Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Leases | ||
Right-of use asset | $ 24,872 | $ 36,700 |
Lease liability | $ 25,232 | $ 37,500 |
Significant Accounting Polic_11
Significant Accounting Policies - Revenue recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues disaggregated by revenue source | |||
Net revenues | $ 2,162,955 | $ 2,108,327 | $ 1,583,884 |
Eliminations | |||
Revenues disaggregated by revenue source | |||
Net revenues | (27,179) | (11,818) | (9,178) |
Fintech | Operating segments | |||
Revenues disaggregated by revenue source | |||
Net revenues | 206,780 | 111,412 | 122,535 |
Portal advertising | Operating segments | |||
Revenues disaggregated by revenue source | |||
Net revenues | 216,440 | 290,215 | 320,473 |
Weibo | Operating segments | |||
Revenues disaggregated by revenue source | |||
Net revenues | 1,766,914 | 1,718,518 | 1,150,054 |
Advertising | |||
Revenues disaggregated by revenue source | |||
Net revenues | 1,743,617 | 1,789,285 | 1,311,866 |
Advertising | Eliminations | |||
Revenues disaggregated by revenue source | |||
Net revenues | (3,034) | (110) | (5,352) |
Advertising | Portal advertising | Operating segments | |||
Revenues disaggregated by revenue source | |||
Net revenues | 216,440 | 290,215 | 320,473 |
Advertising | Weibo | Operating segments | |||
Revenues disaggregated by revenue source | |||
Net revenues | 1,530,211 | 1,499,180 | 996,745 |
Non-advertising | |||
Revenues disaggregated by revenue source | |||
Net revenues | 419,338 | 319,042 | 272,018 |
Financial asset representing fees to be collected for providing the guarantee | $ 19,900 | 20,700 | |
Maximum period for recognition of revenues after purchase of in-game credits | 1 month | ||
Non-advertising | Eliminations | |||
Revenues disaggregated by revenue source | |||
Net revenues | $ (24,145) | (11,708) | (3,826) |
Non-advertising | Fintech | Operating segments | |||
Revenues disaggregated by revenue source | |||
Net revenues | 206,780 | 111,412 | 122,535 |
Non-advertising | Weibo | Operating segments | |||
Revenues disaggregated by revenue source | |||
Net revenues | $ 236,703 | $ 219,338 | $ 153,309 |
Significant Accounting Polic_12
Significant Accounting Policies - Other (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Contract Balances | |||||
Maximum payment terms of majority of contracts with customers | 1 year | ||||
Revenue recognized | $ 113,400 | $ 106,700 | |||
Practical Expedients and Exemptions | |||||
Expense sales commissions when incurred because the amortization period are generally one year or less | true | ||||
Costs of revenues | |||||
Value-Added Tax (as a percent) | 6.70% | ||||
Additional cultural business construction fee (as a percent) | 3.00% | ||||
Taxes assessed by governmental authority | $ 51,900 | $ 65,700 | $ 138,300 | ||
Advertising expenses | |||||
Advertising expenses | $ 440,200 | 521,400 | 268,300 | ||
Stock-based compensation | |||||
Vesting period | 4 years | ||||
Foreign currency | |||||
Foreign currency translation adjustments recorded in other comprehensive (loss)/income | $ (34,635) | (119,647) | 87,258 | ||
Net foreign currency transaction income (loss) | $ 100 | 800 | $ (2,000) | ||
Comprehensive income (loss) | |||||
Period of time within which results of equity method earnings are recognized in arrears | 3 months | ||||
Recent accounting pronouncements | |||||
Cumulative-effect adjustment, (increase) decrease to retained earnings | (10,267) | ||||
ASU 2016-01 | |||||
Comprehensive income (loss) | |||||
Reclassification from AOCI to retained earnings | $ 38,700 | ||||
Recent accounting pronouncements | |||||
Cumulative-effect adjustment, (increase) decrease to retained earnings | $ (10,300) | $ (10,267) | |||
ASU 2016-13 | Minimum | |||||
Recent accounting pronouncements | |||||
Cumulative-effect adjustment, (increase) decrease to retained earnings | $ 56,300 | ||||
ASU 2016-13 | Maximum | |||||
Recent accounting pronouncements | |||||
Cumulative-effect adjustment, (increase) decrease to retained earnings | $ 68,900 |
Cash, Cash Equivalents, Restr_3
Cash, Cash Equivalents, Restricted Cash and Short-term Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash and cash equivalents: | ||||
Cash | $ 1,907,310 | $ 1,383,610 | ||
Cash equivalents: | ||||
Bank time deposits (maturing within 3 months) | 25,625 | 75,367 | ||
Money market funds | 18,951 | 86,823 | ||
Total cash equivalents | 44,576 | 162,190 | ||
Total cash and cash equivalents | 1,951,886 | 1,545,800 | ||
Restricted cash | 184,143 | 97,032 | ||
Total cash, cash equivalents and restricted cash | $ 2,136,029 | 1,642,832 | $ 2,206,703 | $ 1,648,931 |
Maturity dates of the short-term investments | 3 months | |||
Short-term investments: | ||||
Bank time deposits | $ 951,953 | 799,534 | ||
Interest income | $ 86,500 | $ 83,200 | $ 43,200 |
Financing receivables, net (Det
Financing receivables, net (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Financing receivables, net | |
Financing receivables | $ 246,864 |
Allowance for financing receivables | (20,766) |
Financing receivables, net | 226,098 |
Loans and Leases Receivable, Other Information | |
Restricted cash related to cash received via consolidated trusts that has not yet been distributed | $ 56,100 |
Financing receivables, net agin
Financing receivables, net aging analysis of past due financing receivables (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Financing Receivable, Past Due | |
Total past due | $ 20,292 |
Current | 226,572 |
Total financing receivables | 246,864 |
1-29 | |
Financing Receivable, Past Due | |
Total past due | 4,859 |
30-59 | |
Financing Receivable, Past Due | |
Total past due | 4,151 |
60-89 | |
Financing Receivable, Past Due | |
Total past due | 2,993 |
90-179 | |
Financing Receivable, Past Due | |
Total past due | 6,099 |
180 or greater | |
Financing Receivable, Past Due | |
Total past due | $ 2,190 |
Financing receivables, net - Al
Financing receivables, net - Allowance for financing receivables (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Financing Receivable, Allowance for Credit Loss | |
Current period provision | $ (20,755) |
Foreign exchange impact | (11) |
Balance at end of year | $ (20,766) |
Long-term Investments - Roll Fo
Long-term Investments - Roll Forward (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Long-term Investments | ||||
Balance at the beginning of the year | $ 1,288,816 | $ 1,889,843 | $ 1,288,816 | $ 1,318,207 |
Impact of adoption of new investment guidance | 10,267 | |||
New investments/transferred from prepayments | 529,951 | 671,550 | 168,283 | |
Income (loss) from equity method investments | 24 | 1,120 | (16,070) | |
Investment impairment | (321,439) | (60,988) | (122,098) | |
Unrealized loss, net | (35,607) | |||
Disposal/dilution/refund of investments | (42,211) | (84,116) | (13,546) | |
Changes from cost method to consolidation (Note 6) | (29,071) | |||
Fair value change through earnings (including adjustment of subsequent observable price changes) | 160,711 | 96,533 | ||
Share of changes in the equity investee's capital accounts | 5,172 | |||
Dividend received/entitled | (2,706) | (4,087) | (7,829) | |
Others | (18,797) | (29,252) | 26,547 | |
Balance at the end of the year | 2,200,548 | 1,889,843 | 1,288,816 | |
ASU 2016-01 | ||||
Long-term Investments | ||||
Impact of adoption of new investment guidance | 10,300 | 10,267 | ||
Cost Method/ Equity Securities Without Readily Determinable Fair Values | ||||
Long-term Investments | ||||
Balance at the beginning of the year | 866,613 | 1,282,549 | 866,613 | 782,291 |
New investments/transferred from prepayments | 360,428 | 382,031 | 132,079 | |
Investment impairment | (282,819) | (55,289) | (6,513) | |
Disposal/dilution/refund of investments | (10,983) | (10,410) | ||
Changes from cost method to consolidation (Note 6) | (29,071) | |||
Changes from cost method to equity method | (19,121) | |||
Changes from cost method to available-for-sale securities | (2,213) | |||
Changes from investments without readily determinable fair value to readily determinable fair value | (6,190) | (30,000) | ||
Fair value change through earnings (including adjustment of subsequent observable price changes) | (2,743) | 166,553 | ||
Others | (3,669) | (19,940) | 19,571 | |
Balance at the end of the year | 1,336,573 | 1,282,549 | 866,613 | |
Cost Method/ Equity Securities Without Readily Determinable Fair Values | ASU 2016-01 | ||||
Long-term Investments | ||||
Impact of adoption of new investment guidance | (27,419) | |||
Cost Method/ Equity Securities Without Readily Determinable Fair Values | Private equity funds | ASU 2016-01 | ||||
Long-term Investments | ||||
Impact of adoption of new investment guidance | 27,400 | |||
Balance at the end of the year | 27,400 | |||
Available for Sale Securities/ Equity Securities With Readily Determinable Fair Values | ||||
Long-term Investments | ||||
Balance at the beginning of the year | 107,372 | 165,936 | 107,372 | 154,289 |
New investments/transferred from prepayments | 29,566 | 149,140 | 10,000 | |
Investment impairment | (1,275) | |||
Unrealized loss, net | (35,607) | |||
Disposal/dilution/refund of investments | (20,890) | (87,351) | (22,248) | |
Changes from cost method to available-for-sale securities | 2,213 | |||
Changes from investments without readily determinable fair value to readily determinable fair value | 6,190 | 30,000 | ||
Fair value change through earnings (including adjustment of subsequent observable price changes) | 163,454 | (70,020) | ||
Others | (7,702) | (891) | ||
Balance at the end of the year | 336,554 | 165,936 | 107,372 | |
Available for Sale Securities/ Equity Securities With Readily Determinable Fair Values | ASU 2016-01 | ||||
Long-term Investments | ||||
Impact of adoption of new investment guidance | 37,686 | |||
Available for Sale Securities/ Equity Securities With Readily Determinable Fair Values | Private equity funds | ASU 2016-01 | ||||
Long-term Investments | ||||
Impact of adoption of new investment guidance | 37,700 | |||
Balance at the end of the year | 37,700 | |||
Equity Method | Leju | ||||
Long-term Investments | ||||
Balance at the beginning of the year | 57,409 | 48,143 | 57,409 | 199,662 |
Income (loss) from equity method investments | 5,080 | (9,080) | (30,796) | |
Investment impairment | (113,103) | |||
Others | (2,609) | (186) | 1,646 | |
Balance at the end of the year | 50,614 | 48,143 | 57,409 | |
Equity Method | Other equity securities | ||||
Long-term Investments | ||||
Balance at the beginning of the year | $ 257,422 | 393,215 | 257,422 | 181,965 |
New investments/transferred from prepayments | 139,957 | 140,379 | 26,204 | |
Income (loss) from equity method investments | (5,056) | 10,200 | 14,726 | |
Investment impairment | (38,620) | (5,699) | (1,207) | |
Disposal/dilution/refund of investments | (10,338) | 3,235 | 19,112 | |
Changes from cost method to equity method | 19,121 | |||
Share of changes in the equity investee's capital accounts | 5,172 | |||
Dividend received/entitled | (2,706) | (4,087) | (7,829) | |
Others | (4,817) | (8,235) | 5,330 | |
Balance at the end of the year | $ 476,807 | $ 393,215 | $ 257,422 |
Long-term Investments - Equity
Long-term Investments - Equity Method (Details) $ / shares in Units, $ in Millions | Dec. 30, 2016USD ($)shares | Aug. 12, 2016USD ($)shares | Jul. 09, 2014shares | Dec. 30, 2016USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)shares | Dec. 31, 2019$ / shares | Dec. 31, 2019¥ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 30, 2019¥ / shares | Dec. 30, 2019USD ($)$ / shares | Dec. 29, 2019 | Dec. 29, 2016USD ($) | Aug. 31, 2016USD ($) | Apr. 15, 2016$ / shares | Jul. 08, 2014 |
Marketable equity securities designated as available-for-sale | ||||||||||||||||||
Equity Method Investments | $ 527.4 | |||||||||||||||||
Closing price (in dollars per share) | $ / shares | $ 53.64 | $ 39.93 | ||||||||||||||||
E-House | ||||||||||||||||||
Marketable equity securities designated as available-for-sale | ||||||||||||||||||
Ownership percentage (as a percent) | 43.00% | |||||||||||||||||
Equity contribution | $ 340.7 | $ 140 | ||||||||||||||||
Shares held for investment under equity method investment (in shares) | shares | 49,764,809 | |||||||||||||||||
Period for repurchase of equity interest held by entity under equity method investment | 18 months | |||||||||||||||||
Option liability | $ 3.1 | $ 28.5 | ||||||||||||||||
Repurchase of ordinary shares upon exercising option right (in shares) | shares | 49,764,809 | |||||||||||||||||
Realized gain on equity method investment | $ 4.6 | $ 4.6 | ||||||||||||||||
Recognized loss as fair value change in option liability | $ 28.5 | |||||||||||||||||
Leju | ||||||||||||||||||
Marketable equity securities designated as available-for-sale | ||||||||||||||||||
Ownership percentage (as a percent) | 31.10% | |||||||||||||||||
Equity Method Investments | $ 48.1 | $ 50.6 | ||||||||||||||||
Shares held for investment under equity method investment (in shares) | shares | 42,117,874 | |||||||||||||||||
Repurchase of ordinary shares upon exercising option right (in shares) | shares | 40,651,187 | |||||||||||||||||
Repurchase of ordinary shares upon exercise with a fair value | $ 195.1 | |||||||||||||||||
Cash consideration | $ 127.6 | |||||||||||||||||
Loss pick up | 9.1 | 30.8 | ||||||||||||||||
Impairment charge for equity method investments | $ 113.1 | |||||||||||||||||
Closing price (in dollars per share) | $ / shares | $ 1.20 | |||||||||||||||||
Aggregate market value | $ 202.2 | $ 84.7 | ||||||||||||||||
Leju | ADS | ||||||||||||||||||
Marketable equity securities designated as available-for-sale | ||||||||||||||||||
Closing price (in dollars per share) | $ / shares | $ 2.01 | |||||||||||||||||
Tian Ge | ||||||||||||||||||
Marketable equity securities designated as available-for-sale | ||||||||||||||||||
Ownership percentage (as a percent) | 25.00% | 36.00% | ||||||||||||||||
Equity Method Investments | 110.1 | $ 74.7 | ||||||||||||||||
Impairment charge for equity method investments | $ 34.3 | |||||||||||||||||
Aggregate market value | 74.7 | |||||||||||||||||
Showworld | ||||||||||||||||||
Marketable equity securities designated as available-for-sale | ||||||||||||||||||
Ownership percentage (as a percent) | 28.60% | 36.10% | ||||||||||||||||
Equity Method Investments | 46.6 | $ 94.1 | ||||||||||||||||
Closing price (in dollars per share) | (per share) | ¥ 12.14 | $ 0.2 | ¥ 3 | $ 0.43 | ||||||||||||||
Aggregate market value | $ 837.5 | |||||||||||||||||
Showworld | ADS | ||||||||||||||||||
Marketable equity securities designated as available-for-sale | ||||||||||||||||||
Closing price (in dollars per share) | $ / shares | $ 1.74 | |||||||||||||||||
Limited partnership | ||||||||||||||||||
Marketable equity securities designated as available-for-sale | ||||||||||||||||||
Equity Method Investments | $ 48 | $ 46 | ||||||||||||||||
Company providing consumer finance services | ||||||||||||||||||
Marketable equity securities designated as available-for-sale | ||||||||||||||||||
Equity Method Investments | $ 57.4 | |||||||||||||||||
E-House | ||||||||||||||||||
Marketable equity securities designated as available-for-sale | ||||||||||||||||||
Cash consideration (in dollars per share) | $ / shares | $ 6.85 | |||||||||||||||||
Tian Ge | ||||||||||||||||||
Marketable equity securities designated as available-for-sale | ||||||||||||||||||
Closing price (in dollars per share) | $ / shares | $ 1.94 | |||||||||||||||||
Tian Ge | ADS | ||||||||||||||||||
Marketable equity securities designated as available-for-sale | ||||||||||||||||||
Closing price (in dollars per share) | $ / shares | $ 0.25 | |||||||||||||||||
Leju | E-House | ||||||||||||||||||
Marketable equity securities designated as available-for-sale | ||||||||||||||||||
Percentage of outstanding common shares considered for repurchase of equity (as a percent) | 30.00% | |||||||||||||||||
Equity investee in the short video business | ||||||||||||||||||
Marketable equity securities designated as available-for-sale | ||||||||||||||||||
Follow-on investment | $ 34.7 | |||||||||||||||||
Minimum | ||||||||||||||||||
Marketable equity securities designated as available-for-sale | ||||||||||||||||||
Ownership percentage (as a percent) | 20.00% | |||||||||||||||||
Maximum | ||||||||||||||||||
Marketable equity securities designated as available-for-sale | ||||||||||||||||||
Ownership percentage (as a percent) | 50.00% | |||||||||||||||||
IPO | Tian Ge | ||||||||||||||||||
Marketable equity securities designated as available-for-sale | ||||||||||||||||||
Number of shares issued (in shares) | shares | 349,900,000 |
Long-term Investments - Equit_2
Long-term Investments - Equity Method Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating data: | |||
Revenue | $ 1,120,086 | $ 888,767 | $ 569,974 |
Gross profit | 744,208 | 562,892 | 447,060 |
Income (loss) from operations | 7,465 | (39,854) | (111,031) |
Net income (loss) | (53,900) | 60,972 | (72,828) |
Net income (loss) attributable to the investees | (53,148) | 61,665 | $ (70,913) |
Balance sheet data: | |||
Current assets | 1,617,545 | 1,045,113 | |
Long-term assets | 1,508,744 | 1,455,556 | |
Current liabilities | 808,737 | 295,372 | |
Long-term liabilities | 66,012 | 32,330 | |
Non-controlling interests | $ 13,406 | $ (898) |
Long-term Investments - Equit_3
Long-term Investments - Equity Securities with Readily Determinable Fair Values (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 |
Equity Securities with Readily Determinable Fair Values | |||||
Impact of adoption of new guidance for private equity fund investments (Note 5) | $ 10,267 | ||||
Cost Basis | $ 201,519 | $ 186,158 | |||
Gross Unrealized Gains | 222,898 | 20,839 | |||
Gross Unrealized Losses | (80,244) | (41,061) | |||
Other | (7,619) | ||||
Fair Value | 336,554 | 165,936 | |||
Total cost | 1,336,573 | 1,282,549 | |||
Unrealized (loss), net | (159,200) | (74,200) | |||
Private equity funds | |||||
Equity Securities with Readily Determinable Fair Values | |||||
Cost Basis | 66,819 | 58,246 | |||
Gross Unrealized Gains | 18,732 | 16,277 | |||
Gross Unrealized Losses | (1,849) | ||||
Fair Value | 85,551 | 72,674 | |||
Unfunded commitments related to investments | 40,000 | ||||
Unrealized gain | $ 4,300 | 4,200 | |||
Private equity funds | Minimum | |||||
Equity Securities with Readily Determinable Fair Values | |||||
Investment lock-up period | 5 years | ||||
Private equity funds | Maximum | |||||
Equity Securities with Readily Determinable Fair Values | |||||
Investment lock-up period | 10 years | ||||
Jupai | |||||
Equity Securities with Readily Determinable Fair Values | |||||
Cost Basis | $ 23,068 | 23,068 | |||
Gross Unrealized Losses | (17,909) | (7,119) | |||
Fair Value | 5,159 | 15,949 | |||
Total cost | 7,800 | ||||
Other equity securities | |||||
Equity Securities with Readily Determinable Fair Values | |||||
Cost Basis | 75,442 | 74,844 | |||
Gross Unrealized Gains | 8,467 | 4,562 | |||
Gross Unrealized Losses | (37,067) | (29,317) | |||
Fair Value | 46,842 | $ 50,089 | |||
Pintec | |||||
Equity Securities with Readily Determinable Fair Values | |||||
Cost Basis | 30,000 | 30,000 | $ 30,000 | ||
Gross Unrealized Losses | (25,268) | (2,776) | |||
Fair Value | 4,732 | 27,224 | |||
Getui | |||||
Equity Securities with Readily Determinable Fair Values | |||||
Cost Basis | 6,190 | ||||
Gross Unrealized Gains | 195,699 | ||||
Other | (7,619) | ||||
Fair Value | $ 194,270 | ||||
ASU 2016-01 | |||||
Equity Securities with Readily Determinable Fair Values | |||||
Reclassification from AOCI to retained earnings | $ 38,700 | ||||
Impact of adoption of new guidance for private equity fund investments (Note 5) | $ 10,300 | $ 10,267 |
Long-term Investments - Equit_4
Long-term Investments - Equity Securities without Readily Determinable Fair Values (Details) | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)company | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Equity Securities without Readily Determinable Fair Values | |||||
Long-term investments, net | $ 2,200,548,000 | $ 1,889,843,000 | $ 1,288,816,000 | $ 1,318,207,000 | |
Number of private companies | company | 2 | ||||
Gains from upward adjustments | $ 166,600,000 | ||||
Initial cost basis | 1,535,760,000 | 1,191,225,000 | |||
Upward adjustments | 162,530,000 | 166,553,000 | |||
Impairment | (338,108,000) | (55,289,000) | |||
Foreign currency translation | (23,609,000) | (19,940,000) | |||
Total carrying amount at the end of the period | 1,336,573,000 | 1,282,549,000 | |||
Private company two | |||||
Equity Securities without Readily Determinable Fair Values | |||||
Initial cost basis | 96,400,000 | ||||
Private company three | |||||
Equity Securities without Readily Determinable Fair Values | |||||
Initial cost basis | 91,500,000 | ||||
Private company four | |||||
Equity Securities without Readily Determinable Fair Values | |||||
Initial cost basis | 90,000,000 | ||||
Private company, developer of mobile video apps | |||||
Equity Securities without Readily Determinable Fair Values | |||||
Initial cost basis | 100,000,000 | ||||
Private company six | |||||
Equity Securities without Readily Determinable Fair Values | |||||
Initial cost basis | 60,000,000 | ||||
Private company seven | |||||
Equity Securities without Readily Determinable Fair Values | |||||
Initial cost basis | 50,800,000 | ||||
Cost Method/ Equity Securities Without Readily Determinable Fair Values | |||||
Equity Securities without Readily Determinable Fair Values | |||||
Long-term investments, net | 1,336,573,000 | 1,282,549,000 | 866,613,000 | 782,291,000 | |
Impairment | 282,800,000 | 55,300,000 | |||
Downward adjustment | 2,700,000 | ||||
Upward price adjustment recognized in disposed investment | 4,000,000 | ||||
Downward price adjustment recognized in disposed investment | 2,700,000 | ||||
Cost Method/ Equity Securities Without Readily Determinable Fair Values | Yixia Tech Co., Ltd | |||||
Equity Securities without Readily Determinable Fair Values | |||||
Impairment due to unsatisfied financial performance of investee | 177,800,000 | ||||
Cost Method/ Equity Securities Without Readily Determinable Fair Values | Private company two | |||||
Equity Securities without Readily Determinable Fair Values | |||||
Impairment due to significant performance deterioration of investee | 75,200,000 | ||||
Cost Method/ Equity Securities Without Readily Determinable Fair Values | Private company three | |||||
Equity Securities without Readily Determinable Fair Values | |||||
Impairment due to revised projections of future operating results of investee | 29,800,000 | ||||
Cost Method/ Equity Securities Without Readily Determinable Fair Values | Private company, developer of mobile video apps | |||||
Equity Securities without Readily Determinable Fair Values | |||||
Total carrying amount at the end of the period | $ 129,500,000 | ||||
Equity Securities, FV-NI, Valuation Technique | us-gaap:MarketApproachValuationTechniqueMember | ||||
Cost Method/ Equity Securities Without Readily Determinable Fair Values | Private companies, excluding developer of mobile video apps | |||||
Equity Securities without Readily Determinable Fair Values | |||||
Total carrying amount at the end of the period | $ 0 | ||||
Equity Securities, FV-NI, Valuation Technique | us-gaap:ValuationTechniqueDiscountedCashFlowMember | ||||
Cost Method/ Equity Securities Without Readily Determinable Fair Values | ASU 2016-01 | Private equity funds | |||||
Equity Securities without Readily Determinable Fair Values | |||||
Long-term investments, net | $ 27,400,000 | ||||
Available for Sale Securities/ Equity Securities With Readily Determinable Fair Values | |||||
Equity Securities without Readily Determinable Fair Values | |||||
Long-term investments, net | $ 336,554,000 | $ 165,936,000 | $ 107,372,000 | $ 154,289,000 | |
Available for Sale Securities/ Equity Securities With Readily Determinable Fair Values | ASU 2016-01 | Private equity funds | |||||
Equity Securities without Readily Determinable Fair Values | |||||
Long-term investments, net | $ 37,700,000 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | Oct. 01, 2018USD ($) | Jul. 31, 2017USD ($) | Apr. 30, 2017USD ($) | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($)item | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Acquisitions | ||||||||
Goodwill | $ 93,093 | $ 94,240 | $ 81,396 | $ 10,266 | ||||
Number of acquisitions | item | 0 | 0 | 0 | |||||
Yizhibo | ||||||||
Acquisitions | ||||||||
Cash consideration paid to selling shareholders | $ 10,000 | $ 40,000 | ||||||
Consideration | $ 50,000 | |||||||
Total consideration | 50,000 | |||||||
Property and equipment, net | 466 | |||||||
Identifiable intangible assets acquired | 21,942 | |||||||
Other tangible assets | 2,874 | |||||||
Liabilities assumed | (2,434) | |||||||
Goodwill | 27,152 | |||||||
Total consideration | $ 50,000 | |||||||
Yizhibo | Supplier-relationship | ||||||||
Acquisitions | ||||||||
Estimated useful life of identifiable intangible assets acquired | 5 years | |||||||
Identifiable intangible assets acquired | $ 9,700 | |||||||
Yizhibo | Core technology | ||||||||
Acquisitions | ||||||||
Estimated useful life of identifiable intangible assets acquired | 8 years | |||||||
Identifiable intangible assets acquired | $ 6,600 | |||||||
Yizhibo | Trademark and Domain name | ||||||||
Acquisitions | ||||||||
Estimated useful life of identifiable intangible assets acquired | 10 years | |||||||
Identifiable intangible assets acquired | $ 5,600 | |||||||
Weihui | ||||||||
Acquisitions | ||||||||
Estimated useful life of identifiable intangible assets acquired | 5 years | |||||||
Equity interest previously held (as a percent) | 45.00% | |||||||
Equity interest acquired (as a percent) | 10.00% | |||||||
Total equity interest with contingent redemption rights held after step-up acquisition (as a percent) | 55.00% | |||||||
Remeasurement gain upon obtaining control | $ 6,000 | |||||||
Consideration | 12,222 | |||||||
Fair value of previously held 45% equity interest | 35,119 | |||||||
Non-controlling interests | 24,707 | |||||||
Total consideration | 72,048 | |||||||
Cash and cash equivalents | 12,078 | |||||||
Identifiable intangible assets acquired | 19,748 | |||||||
Other tangible assets | 1,602 | |||||||
Liabilities assumed | (2,687) | |||||||
Goodwill | 41,307 | |||||||
Total consideration | 72,048 | |||||||
Weihui | Core technology | ||||||||
Acquisitions | ||||||||
Identifiable intangible assets acquired | 15,900 | |||||||
Weihui | Customer relationships | ||||||||
Acquisitions | ||||||||
Identifiable intangible assets acquired | $ 3,800 | |||||||
Weiju | ||||||||
Acquisitions | ||||||||
Estimated useful life of identifiable intangible assets acquired | 5 years | |||||||
Equity interest acquired (as a percent) | 60.00% | |||||||
Consideration paid to selling shareholders | $ 5,500 | |||||||
Consideration paid to Weiju for its newly issued shares | 30,900 | |||||||
Consideration | 36,405 | |||||||
Non-controlling interests | 18,405 | |||||||
Total consideration | 54,810 | |||||||
Tangible assets | 27,423 | |||||||
Identifiable intangible assets acquired | 5,278 | |||||||
Liabilities assumed | (1,319) | |||||||
Goodwill | 23,428 | |||||||
Total consideration | $ 54,810 | |||||||
Weiju | Less than wholly owned subsidiaries | ||||||||
Acquisitions | ||||||||
Percentage of non-controlling interests (as a percent) | 40.00% | |||||||
Weiju | Core technology | ||||||||
Acquisitions | ||||||||
Identifiable intangible assets acquired | $ 5,300 | |||||||
Weihui | ||||||||
Acquisitions | ||||||||
Equity interest previously held (as a percent) | 45.00% | |||||||
Consideration for amount accounted for under the cost method of accounting | $ 29,100 |
Leases - Initial lease terms (D
Leases - Initial lease terms (Details) | Dec. 31, 2019 |
Maximum | |
Leases | |
Lease term | 6 years 1 month 6 days |
Leases - Components of lease co
Leases - Components of lease cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases | |
Operating lease cost | $ 13,312 |
Short term lease cost | 3,641 |
Total lease cost | $ 16,953 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Maturities of lease liabilities under operating leases | |
2020 | $ 13,101 |
2021 | 10,899 |
2022 | 2,593 |
2023 | 88 |
Thereafter | 0 |
Total future lease payments | $ 26,681 |
Leases - Gross difference (Deta
Leases - Gross difference (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Leases | ||
Total future lease payments | $ 26,681 | |
Less: imputed interest | (1,449) | |
Total lease liabilities | $ 25,232 | $ 37,500 |
Leases - Additional information
Leases - Additional information (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases | |
Average remaining lease terms | 2 years 3 months 18 days |
Weighted-average discount rate (as a percent) | 5.00% |
Lease that has been entered into contracts but not yet commenced | $ 0.1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in the carrying value of goodwill (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($)item | |
Changes in the carrying value of goodwill by segment | |||
Balance at the beginning of the period | $ 94,240 | $ 81,396 | $ 10,266 |
New acquisitions (Note 6) | 27,804 | 67,053 | |
Impairment provided | (10,554) | ||
Foreign exchange impact | (1,147) | (4,406) | 4,077 |
Balance at the end of the period | 93,093 | 94,240 | $ 81,396 |
Gross goodwill | 103,500 | 104,800 | |
Accumulative impairment loss | $ 10,400 | $ 10,500 | |
Number of acquisitions | item | 0 | 0 | 0 |
Changes in the carrying value of goodwill by segment | |||
Balance at the beginning of the period | $ 29,346 | $ 13,420 | $ 10,266 |
New acquisitions (Note 6) | 27,152 | 2,318 | |
Impairment provided | 0 | (10,554) | 0 |
Foreign exchange impact | (357) | (672) | 836 |
Balance at the end of the period | 28,989 | 29,346 | 13,420 |
Fintech | |||
Changes in the carrying value of goodwill by segment | |||
Balance at the beginning of the period | 64,894 | 67,976 | |
New acquisitions (Note 6) | 652 | 64,735 | |
Foreign exchange impact | (790) | (3,734) | 3,241 |
Balance at the end of the period | $ 64,104 | $ 64,894 | $ 67,976 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible assets | |||
Cost | $ 271,986 | $ 275,177 | |
Accumulated Amortization | (41,722) | (33,587) | |
Accumulated Impairment | (16,057) | (16,255) | |
Net | 214,207 | 225,335 | |
Amortization expenses related to intangible assets | 8,500 | 9,100 | $ 4,600 |
Impairment loss of acquired intangible assets | 0 | $ 0 | |
Year Ended December 31 | |||
2020 | 8,384 | ||
2021 | 8,344 | ||
2022 | 7,835 | ||
2023 | 6,680 | ||
2024 and thereafter | 182,434 | ||
Total expected amortization expense | $ 213,677 | ||
Minimum | |||
Intangible assets | |||
Estimated useful lives of intangible assets | 1 year | ||
Maximum | |||
Intangible assets | |||
Estimated useful lives of intangible assets | 10 years | ||
Weihui | |||
Intangible assets | |||
Impairment loss of acquired intangible assets | 12,700 | ||
Land use rights | |||
Intangible assets | |||
Cost | $ 199,879 | 202,340 | |
Accumulated Amortization | (6,315) | (2,341) | |
Net | $ 193,564 | $ 199,999 | |
Estimated useful lives of intangible assets | 50 years | 50 years | |
Amortization expenses related to intangible assets | $ 4,000 | $ 2,400 | |
Technology | |||
Intangible assets | |||
Cost | 43,936 | 44,342 | |
Accumulated Amortization | (24,412) | (22,747) | |
Accumulated Impairment | (11,457) | (11,598) | |
Net | 8,067 | 9,997 | |
Supplier-relationship | |||
Intangible assets | |||
Cost | 9,619 | 9,738 | |
Accumulated Amortization | (2,444) | (495) | |
Net | 7,175 | 9,243 | |
Trademark and Domain name | |||
Intangible assets | |||
Cost | 5,555 | 5,623 | |
Accumulated Amortization | (724) | (147) | |
Net | 4,831 | 5,476 | |
Software | |||
Intangible assets | |||
Cost | 1,858 | 1,859 | |
Accumulated Amortization | (1,858) | (1,859) | |
Other | |||
Intangible assets | |||
Cost | 11,139 | 11,275 | |
Accumulated Amortization | (5,969) | (5,998) | |
Accumulated Impairment | (4,600) | (4,657) | |
Net | 570 | $ 620 | |
Indefinite lived intangible assets | |||
Indefinite lived intangible assets | $ 500 | ||
Other | Minimum | |||
Intangible assets | |||
Estimated useful lives of intangible assets | 1 year | ||
Other | Maximum | |||
Intangible assets | |||
Estimated useful lives of intangible assets | 10 years |
Funding debts - Total (Details)
Funding debts - Total (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Funding debts | |
Short-term funding debts | $ 173,821 |
Funding debts | |
Funding debts | |
Short-term funding debts | 173,821 |
Long-term funding debt | 22,260 |
Total | $ 196,081 |
Funding debts - Maturities (Det
Funding debts - Maturities (Details) - Funding debts $ in Thousands | Dec. 31, 2019USD ($) |
Funding debts, maturities | |
Total | $ 196,081 |
Less than One Year | 173,821 |
One to Two Years | 22,260 |
Two to Three Years | 0 |
Three to Five Years | 0 |
More than Five Years | $ 0 |
Funding debts - Additional Info
Funding debts - Additional Information (Details) - Funding debts, senior tranche securities | Dec. 31, 2019 |
Minimum | |
Funding debts | |
Interest rate (as a percent) | 6.70% |
Maximum | |
Funding debts | |
Interest rate (as a percent) | 9.20% |
Investment in Weibo - General I
Investment in Weibo - General Information (Details) $ in Millions | Apr. 30, 2014shares | Apr. 30, 2014Voteshares | Mar. 31, 2014USD ($)shares | Dec. 31, 2019Vote |
Class A ordinary shares | ||||
Investment in Weibo | ||||
Shares issued from conversion of preferred shares (in shares) | 30,046,154 | 30,046,154 | ||
Class A ordinary shares | IPO | ||||
Investment in Weibo | ||||
Number of shares issued (in shares) | 19,320,000 | |||
Alibaba | Class A ordinary shares | ||||
Investment in Weibo | ||||
Number of shares issued (in shares) | 6,000,000 | |||
Investment in Weibo | ||||
Number of Class A shares converted from Class B shares | 1 | |||
Weibo | Class A ordinary shares | ||||
Investment in Weibo | ||||
Number of votes each share is entitled to | Vote | 1 | 1 | ||
Weibo | Class B ordinary shares | ||||
Investment in Weibo | ||||
Number of votes each share is entitled to | Vote | 3 | 3 | ||
Weibo | Alibaba | ||||
Investment in Weibo | ||||
Amount invested in Weibo | $ | $ 585.8 | |||
Weibo | Alibaba | Preferred shares | ||||
Investment in Weibo | ||||
Number of shares of Weibo's purchased | 30,000,000 | |||
Weibo | Alibaba | Class A ordinary shares | ||||
Investment in Weibo | ||||
Number of shares of Weibo's purchased | 4,800,000 | |||
Number of ordinary shares acquired by investor | 21,067,300 | |||
Weibo | Alibaba | Class A ordinary shares | Private placement | ||||
Investment in Weibo | ||||
Number of ordinary shares acquired by investor | 2,923,478 | |||
Weibo | Alibaba | Alibaba | ||||
Investment in Weibo | ||||
Ownership interest on a fully diluted basis (as a percent) | 18.00% |
Investment in Weibo - Share Own
Investment in Weibo - Share Ownership (Details) - Weibo | Dec. 31, 2019 |
Investment in Weibo | |
Ownership percentage, by parent (as a percent) | 45.00% |
Total share ownership (as a percent) | 100.00% |
Voting power, by parent (as a percent) | 71.00% |
Total voting power (as a percent) | 100.00% |
Alibaba | |
Investment in Weibo | |
Percentage of non-controlling interests (as a percent) | 30.00% |
Voting power, by non-controlling interests (as a percent) | 15.80% |
Others | |
Investment in Weibo | |
Percentage of non-controlling interests (as a percent) | 25.00% |
Voting power, by non-controlling interests (as a percent) | 13.20% |
Investment in Weibo - Votes Per
Investment in Weibo - Votes Per Share (Details) - Weibo - Vote | 1 Months Ended | 12 Months Ended |
Apr. 30, 2014 | Dec. 31, 2019 | |
Class A ordinary shares | ||
Investment in Weibo | ||
Number of votes each share is entitled to | 1 | 1 |
Class B ordinary shares | ||
Investment in Weibo | ||
Number of votes each share is entitled to | 3 | 3 |
Non-controlling interests (Deta
Non-controlling interests (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Non-controlling interests | ||
Total | $ 1,259,432 | $ 1,045,081 |
Non-controlling interests | ||
Total | 1,279,707 | 969,803 |
Others | ||
Non-controlling interests | ||
Total | $ (20,275) | $ 75,278 |
Other Balance Sheet Component_2
Other Balance Sheet Components - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts receivable, net: | |||
Accounts receivable | $ 662,296 | $ 555,861 | |
Allowance for doubtful accounts: | |||
Balance at the beginning of year | (27,964) | (20,214) | $ (14,068) |
Additional provision charged to expenses | (50,313) | (15,424) | (8,465) |
Write-off | 17,857 | 7,674 | 2,319 |
Balance at the end of year | (60,420) | (27,964) | $ (20,214) |
Accounts receivable, net | $ 601,876 | $ 527,897 |
Other Balance Sheet Component_3
Other Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Prepaid expenses and other current assets: | ||
Loans to and interest receivables from investees (Note 13) | $ 332,971 | $ 102,708 |
FVO Loan Investment (Note 20) | 121,131 | |
Secured loan to a founder of a related party | 80,000 | 80,000 |
Prepayments to investees | 51,008 | 89,163 |
Rental and other operation deposits | 28,190 | 9,842 |
Amounts deposited by Weibo users | 34,912 | 30,631 |
Content fees and revenue share | 17,992 | 14,769 |
Advertising and marketing fees | 5,124 | 4,742 |
Deductible value added tax | 9,127 | 10,304 |
Others | 15,433 | 20,276 |
Prepaid expenses and other current assets | $ 695,888 | $ 362,435 |
Other Balance Sheet Component_4
Other Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property and equipment, net: | ||
Property and equipment, gross | $ 449,052 | $ 449,862 |
Less: Accumulated depreciation | (195,873) | (187,016) |
Property and equipment, net | 253,179 | 262,846 |
Office building | ||
Property and equipment, net: | ||
Property and equipment, gross | 194,936 | 197,337 |
Office building related facilities | ||
Property and equipment, net: | ||
Property and equipment, gross | 3,268 | 3,308 |
Computers and equipment | ||
Property and equipment, net: | ||
Property and equipment, gross | 218,446 | 217,335 |
Leasehold improvements | ||
Property and equipment, net: | ||
Property and equipment, gross | 18,131 | 17,328 |
Furniture and fixtures | ||
Property and equipment, net: | ||
Property and equipment, gross | 11,529 | 11,558 |
Other | ||
Property and equipment, net: | ||
Property and equipment, gross | $ 2,742 | $ 2,996 |
Other Balance Sheet Component_5
Other Balance Sheet Components - Fair Value Option Loan Investment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Fair value option loan investment | |
FVO Loan Investment (Note 20) | $ 121,131 |
Fair value gain | $ 4,600 |
Other Balance Sheet Component_6
Other Balance Sheet Components - Related Party Loan (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | |
Related Party Transactions | ||||
Secured loan to a founder of a related party | $ 80,000 | $ 80,000 | ||
Deposit for secured loan | $ 79,274 | $ 43,614 | ||
Secured Loan to Founder of Related Party | ||||
Related Party Transactions | ||||
Secured loan term to a founder of a related party | 1 year | |||
Secured loan to a founder of a related party | $ 100,000 | |||
Annual interest rate of secured loan to a founder of a related party (as a percent) | 5.00% | 7.50% | ||
Loan repaid | $ 20,000 | |||
Deposit for secured loan | $ 79,300 |
Other Balance Sheet Component_7
Other Balance Sheet Components - Impairment on the Prepayment of Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Balance Sheet Components | |||
Impairment on the prepayment of investments | $ 20.6 | $ 20.3 | $ 0.9 |
Other Balance Sheet Component_8
Other Balance Sheet Components - Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other assets: | ||
Investment related deposits | $ 33,641 | $ 46,777 |
Deferred tax assets | 25,400 | 23,213 |
Deposits for land use rights | 6,244 | 6,321 |
Others | 5,800 | 4,816 |
Total Other assets | $ 71,085 | $ 81,127 |
Other Balance Sheet Component_9
Other Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued expenses and other current liabilities: | |||
Accrued sales rebates | $ 196,319 | $ 149,371 | |
Accrued payroll related expenses (including sales commission) | 128,290 | 117,562 | |
Litigation reserve (Note 22) | 125,809 | ||
Advertising and marketing expenses | 94,289 | 83,893 | |
Guarantee liabilities (Note 20) | 43,677 | 10,952 | $ 10,143 |
Deposit for secured loan | 79,274 | 43,614 | |
Turnover tax | 57,764 | 44,280 | |
Amount due to Weibo users | 34,912 | 30,631 | |
Employee reimbursement | 10,165 | 8,934 | |
Professional fee | 18,329 | 10,014 | |
Unpaid consideration for acquisitions and investment | 30,054 | 10,055 | |
Interest payable of Weibo convertible debt and senior notes | 15,344 | 1,500 | |
Others | 52,487 | 30,001 | |
Total accrued expenses and other current liabilities | $ 886,713 | $ 540,807 |
Related Party Transactions (Det
Related Party Transactions (Details) $ / shares in Units, $ in Thousands | Nov. 06, 2017Vote$ / sharesshares | Nov. 05, 2017 | Feb. 28, 2014USD ($) | Mar. 31, 2014 | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) |
Related Party Transactions | |||||||
Revenue from related parties | $ 253,021 | $ 318,255 | $ 212,357 | ||||
Amortized deferred revenues | 113,400 | 106,700 | |||||
Accounts receivable from related parties | 174,080 | 189,522 | |||||
Prepayment to related parties | 13,567 | ||||||
Loans to and interest receivables from related parties | 320,221 | 102,409 | |||||
Deferred revenues from related parties (Note 13) | 33,217 | 43,652 | |||||
Account payable to related parties | 46,655 | 50,678 | |||||
Accrued and other liabilities to related parties | $ 39,836 | $ 14,763 | |||||
Issuance of ordinary shares to the chief executive officer | 7 | ||||||
Per share purchase price (in dollars per share) | $ / shares | $ 39.93 | $ 53.64 | |||||
Stock-based compensation expense | $ 121,871 | $ 95,069 | $ 91,387 | ||||
Number of ordinary shares | shares | 83,317,637 | 82,410,842 | |||||
Number of preferred shares issued | shares | 7,150 | 7,150 | |||||
Preferred shares, par value per share (in dollars per share) | $ / shares | $ 1 | $ 1 | |||||
Percentage of cost and operating expenses that are with related parties (as a percent) | 4.60% | 4.10% | 4.40% | ||||
Set off of accounts receivables | $ 38,700 | ||||||
Set off of accounts payables | 28,700 | ||||||
Set off accrued and other liabilities | 10,000 | ||||||
License revenue | |||||||
Related Party Transactions | |||||||
Revenue from related parties | 10,435 | $ 10,435 | $ 10,435 | ||||
Agency and advertising service earned | |||||||
Related Party Transactions | |||||||
Revenue from related parties | 19,154 | 20,754 | 16,091 | ||||
Promotion and advertising service | |||||||
Related Party Transactions | |||||||
Revenue from related parties | 100,439 | 126,882 | 91,724 | ||||
Promotion and advertising service | Advertising and marketing | |||||||
Related Party Transactions | |||||||
Revenue from related parties | 100,100 | 126,700 | 91,600 | ||||
Others | |||||||
Related Party Transactions | |||||||
Revenue from related parties | 122,993 | 160,184 | 94,107 | ||||
Leju | |||||||
Related Party Transactions | |||||||
Amount allocated to fair value of License Agreements | $ 187,400 | ||||||
License Agreements, period of amortization of deferred revenues | 10 years | ||||||
Extended license agreements, period of amortization of deferred revenues | 10 years | ||||||
Amortized deferred revenues | 10,435 | 10,435 | $ 10,435 | ||||
Deferred revenue | 43,700 | 54,100 | |||||
Non-current portion of deferred revenue | 33,200 | 43,700 | |||||
Accounts receivable from related parties | 7,124 | 4,905 | |||||
Deferred revenues from related parties (Note 13) | 43,652 | 54,087 | |||||
Alibaba | |||||||
Related Party Transactions | |||||||
Accounts receivable from related parties | 61,857 | 53,480 | |||||
Related parties other than Leju and Alibaba | |||||||
Related Party Transactions | |||||||
Accounts receivable from related parties | 105,099 | 131,137 | |||||
Chief Executive Officer | New Wave | |||||||
Related Party Transactions | |||||||
Issuance of preferred shares to New Wave (Note 18) (in shares) | shares | 7,944,386 | ||||||
Number of ordinary shares | shares | 7,944,386 | ||||||
Percentage of aggregate voting power | 55.50% | 11.10% | |||||
Equity investee in the short video business | |||||||
Related Party Transactions | |||||||
Accounts receivable from related parties | 34,700 | 80,900 | |||||
Equity investee in the short video business | Others | |||||||
Related Party Transactions | |||||||
Revenue from related parties | 10,900 | 53,900 | |||||
Company A (an investee in e-commerce business) | |||||||
Related Party Transactions | |||||||
Loans to and interest receivables from related parties | 160,010 | 43,695 | |||||
Company B (an investee providing social and new media marketing services) | |||||||
Related Party Transactions | |||||||
Loans to and interest receivables from related parties | 60,602 | ||||||
Company C (an investee providing online brokerage services) | |||||||
Related Party Transactions | |||||||
Loans to and interest receivables from related parties | 40,982 | 40,982 | |||||
Investee | |||||||
Related Party Transactions | |||||||
Loans to and interest receivables from related parties | 58,627 | 17,732 | |||||
Investee | Advertising Agency | |||||||
Related Party Transactions | |||||||
Accounts receivable from related parties | 13,600 | 5,800 | |||||
Investee | Promotion and advertising service | Advertising Agency | |||||||
Related Party Transactions | |||||||
Revenue from related parties | 40,900 | 5,600 | |||||
Showworld | |||||||
Related Party Transactions | |||||||
Loans receivable | $ 320,200 | $ 102,400 | |||||
Showworld | Minimum | |||||||
Related Party Transactions | |||||||
Interest rate | 4.00% | ||||||
Showworld | Maximum | |||||||
Related Party Transactions | |||||||
Interest rate | 10.50% | ||||||
Class A Preference Shares | Chief Executive Officer | New Wave | |||||||
Related Party Transactions | |||||||
Number of preferred shares issued | shares | 7,150 | ||||||
Number of votes per share | Vote | 10,000 | ||||||
Preferred shares, par value per share (in dollars per share) | $ / shares | $ 1 | ||||||
Economic rights (as a percent) | 0.00% | 0.00% | |||||
Participant rights (as a percent) | 0.00% | 0.00% |
Income Taxes (Details)
Income Taxes (Details) $ / shares in Units, $ in Thousands | Feb. 22, 2008 | Jan. 01, 2008 | Dec. 31, 2019USD ($)jurisdiction$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2019USD ($) | Dec. 31, 2017 |
Income Taxes | ||||||||||||||||
Number of tax jurisdictions | jurisdiction | 4 | |||||||||||||||
Components of income before income taxes | ||||||||||||||||
Income (loss) before income tax expense | $ 255,192 | $ 555,410 | $ 424,239 | |||||||||||||
Loss from non-China operations | (508,580) | (143,680) | (79,945) | |||||||||||||
Income from China operations | 763,772 | 699,090 | 504,184 | |||||||||||||
Income tax expense applicable to China operations | $ 146,465 | $ 129,084 | $ 74,676 | |||||||||||||
Effective tax rate for China operations (as a percent) | 19.00% | 19.00% | 15.00% | |||||||||||||
Impairment charge related to investments | $ 321,439 | $ 60,988 | $ 122,098 | |||||||||||||
Litigation reserve | 125,809 | $ 125,809 | ||||||||||||||
Deferred tax assets: | ||||||||||||||||
Allowances for doubtful accounts | 35,202 | 24,267 | 35,202 | |||||||||||||
Net operating loss carry-forwards | 44,970 | 31,016 | 44,970 | |||||||||||||
Investment impairment | 44,397 | 32,797 | 44,397 | |||||||||||||
Accruals and others | 26,261 | 22,212 | 26,261 | |||||||||||||
Total deferred tax assets | 150,830 | 110,292 | 150,830 | |||||||||||||
Less: valuation allowance | (125,430) | (87,079) | (125,430) | |||||||||||||
Net deferred tax assets | 25,400 | 23,213 | 25,400 | |||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Depreciation | (1,102) | (821) | (1,102) | |||||||||||||
Investment gain | (88,113) | (40,781) | (88,113) | |||||||||||||
Acquired intangible assets | (2,430) | (3,213) | (2,430) | |||||||||||||
Others | (6,482) | (6,278) | (6,482) | |||||||||||||
Total deferred tax liabilities | (98,127) | (51,093) | (98,127) | |||||||||||||
Unrecognized tax liability | 600 | 600 | 600 | |||||||||||||
Composition of income tax expenses for China operations | ||||||||||||||||
Deferred tax (benefits) provision | 46,802 | 33,560 | (3,214) | |||||||||||||
Income tax expense | $ 146,465 | $ 129,084 | $ 74,676 | |||||||||||||
Reconciliation of the differences between statutory tax rate and the effective tax rate for China operations | ||||||||||||||||
Statutory EIT rate (as a percent) | 25.00% | 25.00% | 25.00% | |||||||||||||
Effect on tax holiday and preferential tax rate (as a percent) | (13.00%) | (11.00%) | (11.00%) | |||||||||||||
Permanent differences (as a percent) | 2.00% | 1.00% | (1.00%) | |||||||||||||
Change in valuation allowance (as a percent) | 5.00% | 4.00% | 2.00% | |||||||||||||
Effective tax rate for China operations (as a percent) | 19.00% | 19.00% | 15.00% | |||||||||||||
Tax holiday on China operations | ||||||||||||||||
Tax holiday effect | $ 100,616 | $ 76,246 | $ 56,377 | |||||||||||||
Basic net income per share effect (in dollars per share) | $ / shares | $ 1.44 | $ 1.08 | $ 0.79 | |||||||||||||
Diluted net income per share effect (in dollars per share) | $ / shares | $ 1.44 | $ 1.05 | $ 0.76 | |||||||||||||
Historical rate for valuing deferred tax assets (as a percent) | 25.00% | |||||||||||||||
Operating losses, valuation allowance | $ 45,000 | $ 29,800 | $ 45,000 | |||||||||||||
Key software enterprise | Weibo Technology | ||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Reduction in preferential tax rate (as a percent) | 10.00% | |||||||||||||||
Reversal Of Income tax Provision | 13,000 | 10,800 | ||||||||||||||
Non-China operations | ||||||||||||||||
Components of income before income taxes | ||||||||||||||||
Impairment charge related to investments | 234,000 | |||||||||||||||
Loss in fair value change on overseas investments | 34,900 | 66,300 | ||||||||||||||
Litigation reserve | $ 125,800 | $ 125,800 | ||||||||||||||
Non-China operations | Alibaba | ||||||||||||||||
Components of income before income taxes | ||||||||||||||||
Aggregated gains on disposal of series of investments | $ 92,300 | |||||||||||||||
Non-China operations | Leju | ||||||||||||||||
Components of income before income taxes | ||||||||||||||||
Impairment charge related to investments | 113,100 | |||||||||||||||
Cayman Islands | ||||||||||||||||
Components of income before income taxes | ||||||||||||||||
Withholding income tax on dividends distributed by an FIE to its immediate holding company outside China (as a percent) | 0.00% | |||||||||||||||
U.S. | ||||||||||||||||
Deferred tax assets: | ||||||||||||||||
Net operating loss carry-forwards | $ 29,226 | 30,484 | 29,226 | |||||||||||||
Other tax credits, allowances for doubtful accounts, accruals and other liabilities | 514 | 539 | 514 | |||||||||||||
Total deferred tax assets | 29,740 | 31,023 | 29,740 | |||||||||||||
Less: valuation allowance | (29,740) | (31,023) | (29,740) | |||||||||||||
U.S. | Federal | ||||||||||||||||
Components of income before income taxes | ||||||||||||||||
Net operating loss carryforwards | 85,000 | 85,000 | ||||||||||||||
Net operating loss carryforwards related to employee stock options | 40,400 | 40,400 | ||||||||||||||
U.S. | State | ||||||||||||||||
Components of income before income taxes | ||||||||||||||||
Net operating loss carryforwards | 8,300 | 8,300 | ||||||||||||||
Net operating loss carryforwards related to employee stock options | 4,200 | 4,200 | ||||||||||||||
Hong Kong | ||||||||||||||||
Components of income before income taxes | ||||||||||||||||
Net operating loss carryforwards | 48,900 | 48,900 | ||||||||||||||
Deferred tax assets: | ||||||||||||||||
Net operating loss carry-forwards | 8,070 | 6,023 | 8,070 | |||||||||||||
Less: valuation allowance | (8,070) | (6,023) | (8,070) | |||||||||||||
China | ||||||||||||||||
Components of income before income taxes | ||||||||||||||||
Income tax expense applicable to China operations | $ 146,283 | 129,406 | 73,165 | |||||||||||||
Withholding income tax on dividends distributed by an FIE to its immediate holding company outside China (as a percent) | 10.00% | |||||||||||||||
Net operating loss carryforwards | $ 212,600 | 149,900 | 212,600 | |||||||||||||
Deferred tax assets: | ||||||||||||||||
Total deferred tax assets | $ 45,000 | 31,000 | $ 45,000 | |||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Maximum percentage of withholding income tax on dividends distributed by an FIE to its immediate holding company in Hong Kong (as a percent) | 5.00% | |||||||||||||||
Minimum percentage of ownership interests held by foreign investors (as a percent) | 25.00% | 25.00% | ||||||||||||||
Percentage of withholding income tax on dividends distributed by PRC subsidiaries to its immediate holding company in Hong Kong (as a percent) | 5.00% | |||||||||||||||
Maximum examination period | 5 years | |||||||||||||||
Statute of limitation of transferring pricing related adjustment | 10 years | |||||||||||||||
Composition of income tax expenses for China operations | ||||||||||||||||
Current tax provision | $ 99,481 | 95,846 | 76,379 | |||||||||||||
Deferred tax (benefits) provision | 46,802 | 33,560 | (3,214) | |||||||||||||
Income tax expense | 146,283 | 129,406 | $ 73,165 | |||||||||||||
Deferred Tax Provision for gains on investments | $ 49,900 | $ 40,800 | $ 49,900 | |||||||||||||
Reconciliation of the differences between statutory tax rate and the effective tax rate for China operations | ||||||||||||||||
Statutory EIT rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | ||||
China | High and new technology enterprises | ||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Preferential statutory rate (as a percent) | 15.00% | 15.00% | ||||||||||||||
China | Software enterprise | ||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Preferential statutory rate (as a percent) | 12.50% | |||||||||||||||
Period of special tax holidays | 2 years | |||||||||||||||
Reduction in preferential tax rate (as a percent) | 12.50% | |||||||||||||||
Period of reduced preferential income tax rate | 3 years |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Anti-dilutive share | |||
Anti-dilutive shares excluded from the calculation of diluted net income (loss) per share | 2,400 | ||
Numerator: | |||
Net income (loss) attributable to SINA's ordinary shareholders | $ (70,542,000) | $ 125,562,000 | $ 156,569,000 |
Denominator: | |||
Weighted average ordinary shares outstanding (in shares) | 69,640 | 70,296 | 71,284 |
Basic net income (loss) per share | $ (1.01) | $ 1.79 | $ 2.20 |
Numerator: | |||
Net income (loss) attributable to SINA's ordinary shareholders | $ (70,542,000) | $ 125,562,000 | $ 156,569,000 |
Less: Effect on consolidated net income per share of dilutive shares of the Company's equity interests | 956,000 | 3,699,000 | 3,915,000 |
Add: Effect on interest expenses and amortized issuance cost of convertible debt | 0 | 1,403,000 | 1,531,000 |
Net income (loss) attributable for calculating diluted net income per share | $ (71,498,000) | $ 123,266,000 | $ 154,185,000 |
Denominator: | |||
Weighted average ordinary shares outstanding (in shares) | 69,640 | 70,296 | 71,284 |
Weighted average ordinary shares equivalents: Effects of dilutive securities | |||
Stock options (in shares) | 87 | 94 | |
Unvested restricted share units (in shares) | 683 | 1,172 | |
Convertible debt (in shares) | 1,309 | 1,381 | |
Shares used in computing diluted net income (loss) per share attributable to SINA (in shares) | 69,640 | 72,375 | 73,931 |
Diluted net income (loss) per share | $ (1.03) | $ 1.70 | $ 2.09 |
Numerator: | |||
Less: Effect on consolidated net income per share of dilutive shares of the Company's equity interests | $ 1,000,000 | $ 3,300,000 | $ 3,600,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
China | China Contribution Plan | |||
Employee benefit plans | |||
Employer contribution under China Contribution Plan | $ 88.5 | $ 93.8 | $ 69.9 |
U.S. | 401(k) Savings Plan | |||
Employee benefit plans | |||
Maximum percentage of eligible pretax earnings to be deferred by employees of U.S. subsidiary under 401(k) Savings Plan | 100.00% |
Profit Appropriation (Details)
Profit Appropriation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)fund | |
Profit Appropriation | |
Minimum percentage of after-tax profit transferred by Chinese subsidiaries to general reserve fund (as a percent) | 10.00% |
Maximum percentage criteria for appropriation of after-tax profit of Chinese subsidiaries to general reserve fund (as a percent) | 50.00% |
Number of reserve funds except general reserve fund, appropriation at the entity's discretion | fund | 2 |
Minimum percentage of after-tax profit transferred by VIEs to statutory reserve fund (as a percent) | 10.00% |
Maximum percentage criteria for in appropriation of after-tax profit by VIEs to certain statutory reserve funds (as a percent) | 50.00% |
Restricted net assets | $ | $ 581.4 |
Percent of restricted net assets of total consolidated net assets (as a percent) | 22.00% |
Shareholders' Equity - Stockhol
Shareholders' Equity - Stockholder Rights Plan (Details) | 12 Months Ended | |
Dec. 31, 2019seriesshares | Dec. 31, 2018shares | |
Shareholders' Equity | ||
Unapproved share purchase percentage needed to initiate Shareholders' Rights Plan (as a percent) | 10.00% | |
Preferred shares, shares authorized (in shares) | shares | 3,750,000 | 3,750,000 |
Minimum number of series in which preference shares is to be issued | series | 1 |
Shareholders' Equity - Preferre
Shareholders' Equity - Preferred Shares (Details) | Nov. 06, 2017Vote$ / sharesshares | Nov. 05, 2017 | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares |
Shareholders' Equity | ||||
Number of ordinary shares | 83,317,637 | 82,410,842 | ||
Number of preferred shares issued | 7,150 | 7,150 | ||
Preferred shares, par value per share (in dollars per share) | $ / shares | $ 1 | $ 1 | ||
New Wave | Chief Executive Officer | ||||
Shareholders' Equity | ||||
Number of ordinary shares | 7,944,386 | |||
Percentage of aggregate voting power | 55.50% | 11.10% | ||
New Wave | Chief Executive Officer | Class A Preference Shares | ||||
Shareholders' Equity | ||||
Number of preferred shares issued | 7,150 | |||
Number of votes per share | Vote | 10,000 | |||
Preferred shares, par value per share (in dollars per share) | $ / shares | $ 1 | |||
Economic rights (as a percent) | 0.00% | 0.00% | ||
Participant rights (as a percent) | 0.00% | 0.00% |
Shareholders' Equity - In kind
Shareholders' Equity - In kind Distribution (Details) - USD ($) $ in Thousands | Jul. 10, 2017 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 |
Stock-based compensation | ||||
Number of ordinary shares of SINA outstanding | 71,421,480 | 68,450,187 | 69,368,140 | |
Stock-based compensation | ||||
Shares issued under In-Kind distribution (in shares) | 7,142,148 | |||
Economic interest (as a percent) | 45.00% | |||
Voting interest (as percent) | 71.00% | |||
Retained Earnings | ||||
Stock-based compensation | ||||
Increase (decrease) resulting from In-Kind distribution of consolidated entity's shares | $ (554,016) | |||
Non-controlling Interests | ||||
Stock-based compensation | ||||
Increase (decrease) resulting from In-Kind distribution of consolidated entity's shares | $ 31,745 |
Shareholders' Equity - Share In
Shareholders' Equity - Share Incentive Plan (Details) - shares | 1 Months Ended | 12 Months Ended | |||||
May 31, 2019 | Jul. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 02, 2010 | |
Stock-based compensation | |||||||
Ordinary shares available for issuance (in shares) | 3,478,000 | ||||||
Awards that could be granted | 2,952,000 | 567,000 | 2,908,000 | 3,346,000 | |||
Stock Options | |||||||
Stock-based compensation | |||||||
Number of options outstanding | 155,000 | 155,000 | 190,000 | 234,000 | |||
Amended and Restated 2007 Plan | |||||||
Stock-based compensation | |||||||
Ordinary shares available for issuance (in shares) | 10,000,000 | ||||||
Awards that could be granted | 0 | ||||||
Amended and Restated 2007 Plan | Stock Options | |||||||
Stock-based compensation | |||||||
Number of options outstanding | 155,000 | ||||||
Amended and Restated 2007 Plan | Restricted share units | |||||||
Stock-based compensation | |||||||
Number of restricted share units outstanding | 0 | ||||||
2015 Share Incentive Plan | |||||||
Stock-based compensation | |||||||
Ordinary shares available for issuance (in shares) | 6,000,000 | ||||||
Maximum number of ordinary shares available for issuance is reduced for every share issued pursuant to share option or share appreciation right (in shares) | 1 | ||||||
Maximum number of ordinary shares available for issuance is reduced for every share issued as restricted shares or pursuant to restricted share units (in shares) | 1.75 | ||||||
Maximum shares available for grant as a percentage of total outstanding shares (as a percent) | 3.00% | ||||||
Minimum exercise price of shares granted as a percentage of fair market value on the date of grants (as a percent) | 110.00% | ||||||
2015 Share Incentive Plan | Stock Options | |||||||
Stock-based compensation | |||||||
Number of options outstanding | 0 | ||||||
2015 Share Incentive Plan | Restricted share units | |||||||
Stock-based compensation | |||||||
Number of restricted share units outstanding | 1,563,000 | ||||||
2019 Share Incentive Plan | |||||||
Stock-based compensation | |||||||
Ordinary shares available for issuance (in shares) | 3,477,643 | ||||||
Maximum shares available for grant as a percentage of total outstanding shares (as a percent) | 3.00% | ||||||
Aggregate number of shares reserved for awards | 3,477,643 | ||||||
2019 Share Incentive Plan | Stock Options | |||||||
Stock-based compensation | |||||||
Number of options outstanding | 0 | ||||||
2019 Share Incentive Plan | Restricted share units | |||||||
Stock-based compensation | |||||||
Number of restricted share units outstanding | 547,000 |
Shareholders' Equity - Expense
Shareholders' Equity - Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-based Compensation | |||
Stock-based compensation expense | $ 121,871 | $ 95,069 | $ 91,387 |
Costs of revenues | |||
Stock-based Compensation | |||
Stock-based compensation expense | 11,859 | 10,128 | 9,257 |
Sales and marketing | |||
Stock-based Compensation | |||
Stock-based compensation expense | 24,499 | 21,942 | 20,790 |
Product development | |||
Stock-based Compensation | |||
Stock-based compensation expense | 38,991 | 30,830 | 29,163 |
General and administrative | |||
Stock-based Compensation | |||
Stock-based compensation expense | $ 46,522 | $ 32,169 | $ 32,177 |
Shareholders' Equity - Shares A
Shareholders' Equity - Shares Available (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of shares available for issuance | |||
Outstanding number of shares available for issuance at the beginning of the year | 567,000 | 2,908,000 | 3,346,000 |
Ordinary shares available for issuance (in shares) | 3,478,000 | ||
Granted (in shares) | (1,354,000) | (2,456,000) | (673,000) |
Cancelled/forfeited (in shares) | 261,000 | 128,000 | 320,000 |
Expired (in shares) | (13,000) | (85,000) | |
Outstanding number of shares available for issuance at the end of the year | 2,952,000 | 567,000 | 2,908,000 |
Restricted share units | |||
Number of shares available for issuance | |||
Restricted shares units granted (in shares) | 1,019,000 | 1,404,000 | 385,000 |
Shareholders' Equity - Stock Op
Shareholders' Equity - Stock Options Activity (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Aggregate Intrinsic Value | ||||
Ending stock price (in dollars per share) | $ 39.93 | $ 53.64 | ||
Stock Options | ||||
Stock-based compensation | ||||
Granted (in shares) | 0 | 0 | 0 | |
Stock options activity | ||||
Outstanding at the beginning of the year (in shares) | 155,000 | 190,000 | 234,000 | |
Exercised (in shares) | (34,000) | (26,000) | ||
Cancelled/expired/forfeited (in shares) | (1,000) | (18,000) | ||
Outstanding at the end of the year (in shares) | 155,000 | 155,000 | 190,000 | 234,000 |
Vested and expected to vest at the end of the year (in shares) | 155,000 | 155,000 | ||
Exercisable at the end of the year (in shares) | 155,000 | 153,000 | ||
Weighted Average Exercise Price | ||||
Outstanding at the beginning of the year (in dollars per share) | $ 37.75 | $ 38.86 | $ 38.41 | |
Exercised (in dollars per share) | 35.69 | 43.85 | 35.69 | |
Cancelled/expired/forfeited (in dollars per share) | 35.69 | 37.61 | ||
Outstanding at the end of the year (in dollars per share) | 37.75 | 37.75 | $ 38.86 | $ 38.41 |
Vested and expected to vest at the end of the year (in dollars per share) | 37.75 | 37.75 | ||
Exercisable at the end of the year (in dollars per share) | $ 37.75 | $ 37.77 | ||
Weighted Average Remaining Contractual Life (In years) | ||||
Outstanding at end of the year | 11 months 4 days | 1 year 11 months 4 days | 2 years 6 months 21 days | 3 years 7 months 17 days |
Vested and expected to vest at the end of the year | 11 months 4 days | 1 year 11 months 4 days | ||
Exercisable at the end of the year | 11 months 4 days | 1 year 11 months 4 days | ||
Aggregate Intrinsic Value | ||||
Outstanding at the end of the year | $ 338,000 | $ 2,467,000 | $ 11,693,000 | $ 5,226,000 |
Vested and expected to vest at the end of the year | 338,000 | 2,467,000 | ||
Exercisable at the end of the year | 338,000 | 2,435,000 | ||
Total intrinsic value of options exercised | 0 | 1,500,000 | 1,600,000 | |
Cash received from the exercises of stock option | 0 | 1,500,000 | $ 900,000 | |
Unrecognized compensation cost | $ 0 | $ 20,000 |
Shareholders' Equity - Stock _2
Shareholders' Equity - Stock Options Price Ranges (Details) - Stock Options - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Range of Exercise Prices | ||
Options Outstanding (in shares) | 155 | 155 |
Weighted Average Exercise Price (in dollars per share) | $ 37.75 | $ 37.75 |
Options Exercisable (in shares) | 155 | 153 |
Weighted Average Exercise Price (in dollars per share) | $ 37.75 | $ 37.77 |
Weighted Average Remaining Contractual Life (In years) | 11 months 4 days | 1 year 11 months 4 days |
Range of Exercise Prices $35.69 - $35.69 | ||
Range of Exercise Prices | ||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $ 35.69 | $ 35.69 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 35.69 | $ 35.69 |
Options Outstanding (in shares) | 31 | 31 |
Weighted Average Exercise Price (in dollars per share) | $ 35.69 | $ 35.69 |
Options Exercisable (in shares) | 31 | 29 |
Weighted Average Exercise Price (in dollars per share) | $ 35.69 | $ 35.69 |
Weighted Average Remaining Contractual Life (In years) | 1 year 14 days | 2 years 14 days |
Range of Exercise Prices $38.27 - $38.27 | ||
Range of Exercise Prices | ||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $ 38.27 | $ 38.27 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 38.27 | $ 38.27 |
Options Outstanding (in shares) | 124 | 124 |
Weighted Average Exercise Price (in dollars per share) | $ 38.27 | $ 38.27 |
Options Exercisable (in shares) | 124 | 124 |
Weighted Average Exercise Price (in dollars per share) | $ 38.27 | $ 38.27 |
Weighted Average Remaining Contractual Life (In years) | 10 months 24 days | 1 year 10 months 24 days |
Shareholders' Equity - RSUs (De
Shareholders' Equity - RSUs (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Service-based restricted share units | |||
Shares Granted | |||
Outstanding at the beginning of the year (in shares) | 2,145,000 | 1,700,000 | 2,405,000 |
Awarded (in shares) | 999,000 | 1,383,000 | 365,000 |
Vested (in shares) | (900,000) | (874,000) | (905,000) |
Cancelled/forfeited (in shares) | (145,000) | (64,000) | (165,000) |
Outstanding at the end of the year (in shares) | 2,099,000 | 2,145,000 | 1,700,000 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the year (in dollars per share) | $ 69.76 | $ 51.92 | $ 45.47 |
Awarded (in dollars per share) | 46.61 | 77.67 | 75.05 |
Vested (in dollars per share) | 63.56 | 48.44 | 45.45 |
Cancelled/forfeited (in dollars per share) | 72.33 | 57.78 | 44.57 |
Outstanding at the end of the year (in dollars per share) | $ 61.23 | $ 69.76 | $ 51.92 |
Unrecognized compensation cost | $ 106.3 | $ 118.2 | |
Expected weighted-average recognition period for unrecognized compensation cost | 2 years 10 months 24 days | 3 years | |
Total fair value vested | $ 41.6 | $ 69.7 | $ 92.2 |
Service-based restricted share units | Non-employee directors | |||
Shares Granted | |||
Awarded (in shares) | 25,000 | 25,000 | 20,000 |
Performance-based RSU | |||
Shares Granted | |||
Outstanding at the beginning of the year (in shares) | 12,000 | 14,000 | 18,000 |
Awarded (in shares) | 21,000 | 21,000 | 19,000 |
Vested (in shares) | (7,000) | (12,000) | (15,000) |
Cancelled/forfeited (in shares) | (15,000) | (11,000) | (8,000) |
Outstanding at the end of the year (in shares) | 11,000 | 12,000 | 14,000 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the year (in dollars per share) | $ 101.86 | $ 65.18 | $ 47.47 |
Awarded (in dollars per share) | 67.35 | 102.88 | 65.18 |
Vested (in dollars per share) | 102.69 | 65.18 | 47.47 |
Cancelled/forfeited (in dollars per share) | 78.72 | 98.10 | 58.51 |
Outstanding at the end of the year (in dollars per share) | $ 67.35 | $ 101.86 | $ 65.18 |
Shareholders' Equity - Weibo Sh
Shareholders' Equity - Weibo Share Based Plan (Details) - USD ($) $ in Thousands | Jan. 01, 2015 | Mar. 31, 2014 | Aug. 31, 2010 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Stock-based compensation | ||||||
Ordinary shares available for issuance (in shares) | 3,478,000 | |||||
Stock-based compensation expense | $ 121,871 | $ 95,069 | $ 91,387 | |||
2010 Weibo Incentive Plan | ||||||
Stock-based compensation | ||||||
Term of share incentive plan | 10 years | |||||
Ordinary shares available for issuance (in shares) | 35,000,000 | |||||
Maximum number of ordinary shares available for issuance is reduced for every share issued pursuant to share option or share appreciation right (in shares) | 1 | |||||
Maximum number of ordinary shares available for issuance is reduced for every share issued as restricted shares or pursuant to restricted share units (in shares) | 1.75 | |||||
2014 Plan | ||||||
Stock-based compensation | ||||||
Term of share incentive plan | 10 years | |||||
Ordinary shares available for issuance (in shares) | 4,600,000 | |||||
Number of shares from new added shares (in shares) | 1,000,000 | |||||
One-time percentage increase on January 1, 2015 for maximum aggregate number of shares which may be issued (as a percent) | 10.00% | |||||
Stock-based compensation expense | $ 61,300 | 41,000 | 48,000 | |||
Amortization period | 4 years | |||||
Stock-based compensation | ||||||
Stock-based compensation expense | $ 61,289 | 41,011 | 48,037 | |||
Costs of revenues | ||||||
Stock-based compensation | ||||||
Stock-based compensation expense | 11,859 | 10,128 | 9,257 | |||
Costs of revenues | Weibo | ||||||
Stock-based compensation | ||||||
Stock-based compensation expense | 5,251 | 3,522 | 3,716 | |||
Sales and marketing | ||||||
Stock-based compensation | ||||||
Stock-based compensation expense | 24,499 | 21,942 | 20,790 | |||
Sales and marketing | Weibo | ||||||
Stock-based compensation | ||||||
Stock-based compensation expense | 9,828 | 6,837 | 8,264 | |||
Product development | ||||||
Stock-based compensation | ||||||
Stock-based compensation expense | 38,991 | 30,830 | 29,163 | |||
Product development | Weibo | ||||||
Stock-based compensation | ||||||
Stock-based compensation expense | 28,628 | 21,187 | 21,879 | |||
General and administrative | ||||||
Stock-based compensation | ||||||
Stock-based compensation expense | 46,522 | 32,169 | 32,177 | |||
General and administrative | Weibo | ||||||
Stock-based compensation | ||||||
Stock-based compensation expense | $ 17,582 | $ 9,465 | $ 14,178 |
Shareholders' Equity - Weibo Av
Shareholders' Equity - Weibo Available Shares (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of shares available for issuance | |||
Outstanding number of shares available for issuance at the beginning of the year | 567,000 | 2,908,000 | 3,346,000 |
Granted (in shares) | (1,354,000) | (2,456,000) | (673,000) |
Outstanding number of shares available for issuance at the end of the year | 2,952,000 | 567,000 | 2,908,000 |
Number of shares available for issuance | |||
Outstanding number of shares available for issuance at the beginning of the year | 17,293,000 | 18,540,000 | 18,878,000 |
Granted (in shares) | (2,411,000) | (1,597,000) | (736,000) |
Cancelled/expired/forfeited (in shares) | 222,000 | 350,000 | 398,000 |
Outstanding number of shares available for issuance at the end of the year | 15,104,000 | 17,293,000 | 18,540,000 |
Shareholders' Equity - Weibo Op
Shareholders' Equity - Weibo Option Activities (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Aggregate Intrinsic Value | ||||
Fair value per ordinary share of Weibo (in dollars per share) | $ 39.93 | $ 53.64 | ||
Stock Options | ||||
Stock options activity | ||||
Outstanding at the beginning of the year (in shares) | 155,000 | 190,000 | 234,000 | |
Exercised (in shares) | (34,000) | (26,000) | ||
Cancelled/expired/forfeited (in shares) | (1,000) | (18,000) | ||
Outstanding at the end of the year (in shares) | 155,000 | 155,000 | 190,000 | 234,000 |
Vested and expected to vest at the end of the year (in shares) | 155,000 | 155,000 | ||
Exercisable at the end of the year (in shares) | 155,000 | 153,000 | ||
Weighted Average Exercise Price | ||||
Outstanding at the beginning of the year (in dollars per share) | $ 37.75 | $ 38.86 | $ 38.41 | |
Exercised (in dollars per share) | 35.69 | 43.85 | 35.69 | |
Cancelled/expired/forfeited (in dollars per share) | 35.69 | 37.61 | ||
Outstanding at the end of the year (in dollars per share) | 37.75 | 37.75 | $ 38.86 | $ 38.41 |
Vested and expected to vest at the end of the year (in dollars per share) | 37.75 | 37.75 | ||
Exercisable at the end of the year (in dollars per share) | $ 37.75 | $ 37.77 | ||
Weighted Average Remaining Contractual Life (In years) | ||||
Outstanding at end of the year | 11 months 4 days | 1 year 11 months 4 days | 2 years 6 months 21 days | 3 years 7 months 17 days |
Vested and expected to vest at the end of the year | 11 months 4 days | 1 year 11 months 4 days | ||
Exercisable at the end of the year | 11 months 4 days | 1 year 11 months 4 days | ||
Aggregate Intrinsic Value | ||||
Outstanding at the end of the year | $ 338,000 | $ 2,467,000 | $ 11,693,000 | $ 5,226,000 |
Vested and expected to vest at the end of the year | 338,000 | 2,467,000 | ||
Exercisable at the end of the year | $ 338,000 | $ 2,435,000 | ||
Granted (in shares) | 0 | 0 | 0 | |
Total intrinsic value of options exercised | $ 0 | $ 1,500,000 | $ 1,600,000 | |
Cash received from the exercises of stock option | $ 0 | $ 1,500,000 | $ 900,000 | |
Aggregate Intrinsic Value | ||||
Fair value per ordinary share of Weibo (in dollars per share) | $ 46.35 | $ 58.43 | ||
Weibo | Stock Options | ||||
Stock options activity | ||||
Outstanding at the beginning of the year (in shares) | 184,000 | 437,000 | 2,587,000 | |
Exercised (in shares) | (95,000) | (248,000) | (2,122,000) | |
Cancelled/expired/forfeited (in shares) | (5,000) | (28,000) | ||
Outstanding at the end of the year (in shares) | 89,000 | 184,000 | 437,000 | 2,587,000 |
Vested and expected to vest at the end of the year (in shares) | 89,000 | 184,000 | ||
Exercisable at the end of the year (in shares) | 89,000 | 184,000 | ||
Weighted Average Exercise Price | ||||
Outstanding at the beginning of the year (in dollars per share) | $ 3.45 | $ 3.24 | $ 1.41 | |
Exercised (in dollars per share) | 3.41 | 3.14 | 1.04 | |
Cancelled/expired/forfeited (in dollars per share) | 1.16 | 0.68 | ||
Outstanding at the end of the year (in dollars per share) | 3.49 | 3.45 | $ 3.24 | $ 1.41 |
Vested and expected to vest at the end of the year (in dollars per share) | 3.49 | 3.45 | ||
Exercisable at the end of the year (in dollars per share) | $ 3.49 | $ 3.45 | ||
Weighted Average Remaining Contractual Life (In years) | ||||
Outstanding at end of the year | 8 months 12 days | 1 year 6 months | 2 years | 1 year 7 months 6 days |
Vested and expected to vest at the end of the year | 8 months 12 days | 1 year 6 months | ||
Exercisable at the end of the year | 8 months 12 days | 1 year 6 months | ||
Aggregate Intrinsic Value | ||||
Outstanding at the end of the year | $ 3,799,000 | $ 10,089,000 | $ 43,800,000 | $ 101,403,000 |
Vested and expected to vest at the end of the year | 3,799,000 | 10,089,000 | ||
Exercisable at the end of the year | $ 3,799,000 | $ 10,089,000 | ||
Granted (in shares) | 0 | 0 | 0 | |
Total intrinsic value of options exercised | $ 4,200,000 | $ 25,600,000 | $ 135,200,000 | |
Cash received from the exercises of stock option | $ 300,000 | $ 800,000 | $ 2,300,000 |
Shareholders' Equity - Weibo St
Shareholders' Equity - Weibo Stock Option Price Range (Details) - Stock Options - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Range of Exercise Prices | ||
Options Outstanding (in shares) | 155 | 155 |
Weighted Average Exercise Price (in dollars per share) | $ 37.75 | $ 37.75 |
Options Exercisable (in shares) | 155 | 153 |
Weighted Average Exercise Price (in dollars per share) | $ 37.75 | $ 37.77 |
Weighted Average Remaining Contractual Life (In years) | 11 months 4 days | 1 year 11 months 4 days |
Range of Exercise Prices | ||
Options Outstanding (in shares) | 89 | 184 |
Weighted Average Exercise Price (in dollars per share) | $ 3.49 | $ 3.45 |
Options Exercisable (in shares) | 89 | 184 |
Weighted Average Exercise Price (in dollars per share) | $ 3.49 | $ 3.45 |
Weighted Average Remaining Contractual Life (In years) | 8 months 12 days | 1 year 6 months |
Weibo | Range of Exercise Prices $3.25 - $3.36 | ||
Range of Exercise Prices | ||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $ 3.25 | |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 3.36 | |
Options Outstanding (in shares) | 32 | |
Weighted Average Exercise Price (in dollars per share) | $ 3.30 | |
Options Exercisable (in shares) | 32 | |
Weighted Average Exercise Price (in dollars per share) | $ 3.30 | |
Weighted Average Remaining Contractual Life (In years) | 9 months 18 days | |
Weibo | Range of Exercise Prices $3.43 - $3.50 | ||
Range of Exercise Prices | ||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $ 3.43 | $ 3.43 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 3.50 | $ 3.50 |
Options Outstanding (in shares) | 89 | 152 |
Weighted Average Exercise Price (in dollars per share) | $ 3.49 | $ 3.48 |
Options Exercisable (in shares) | 89 | 152 |
Weighted Average Exercise Price (in dollars per share) | $ 3.49 | $ 3.48 |
Weighted Average Remaining Contractual Life (In years) | 8 months 12 days | 1 year 8 months 12 days |
Shareholders' Equity - Weibo RS
Shareholders' Equity - Weibo RSUs (Details) - Service-based restricted share units - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares Granted | |||
Outstanding at the beginning of the year (in shares) | 2,145 | 1,700 | 2,405 |
Awarded (in shares) | 999 | 1,383 | 365 |
Vested (in shares) | (900) | (874) | (905) |
Cancelled/forfeited (in shares) | (145) | (64) | (165) |
Outstanding at the end of the year (in shares) | 2,099 | 2,145 | 1,700 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the year (in dollars per share) | $ 69.76 | $ 51.92 | $ 45.47 |
Awarded (in dollars per share) | 46.61 | 77.67 | 75.05 |
Vested (in dollars per share) | 63.56 | 48.44 | 45.45 |
Cancelled/forfeited (in dollars per share) | 72.33 | 57.78 | 44.57 |
Outstanding at the end of the year (in dollars per share) | $ 61.23 | $ 69.76 | $ 51.92 |
Unrecognized compensation cost | $ 106.3 | $ 118.2 | |
Expected weighted-average recognition period for unrecognized compensation cost | 2 years 10 months 24 days | 3 years | |
Total fair value vested | $ 41.6 | $ 69.7 | $ 92.2 |
Shares Granted | |||
Outstanding at the beginning of the year (in shares) | 2,756 | 3,267 | 5,458 |
Awarded (in shares) | 2,313 | 1,406 | 581 |
Vested (in shares) | (1,374) | (1,757) | (2,406) |
Cancelled/forfeited (in shares) | (183) | (160) | (366) |
Outstanding at the end of the year (in shares) | 3,512 | 2,756 | 3,267 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the year (in dollars per share) | $ 48.62 | $ 25.45 | $ 17.23 |
Awarded (in dollars per share) | 45.49 | 68.18 | 62.87 |
Vested (in dollars per share) | 37.60 | 21.59 | 17.01 |
Cancelled/forfeited (in dollars per share) | 48.48 | 44 | 17.72 |
Outstanding at the end of the year (in dollars per share) | $ 50.89 | $ 48.62 | $ 25.45 |
Unrecognized compensation cost | $ 150.7 | ||
Expected weighted-average recognition period for unrecognized compensation cost | 3 years 2 months 12 days | ||
Total fair value vested | $ 51.7 | $ 37.9 | $ 40.9 |
Shareholders' Equity - Weibo Pe
Shareholders' Equity - Weibo Performance Based RSU (Details) - Performance-based RSU - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares Granted | |||
Outstanding at the beginning of the year (in shares) | 12 | 14 | 18 |
Awarded (in shares) | 21 | 21 | 19 |
Vested (in shares) | (7) | (12) | (15) |
Cancelled/forfeited (in shares) | (15) | (11) | (8) |
Outstanding at the end of the year (in shares) | 11 | 12 | 14 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the year (in dollars per share) | $ 101.86 | $ 65.18 | $ 47.47 |
Awarded (in dollars per share) | 67.35 | 102.88 | 65.18 |
Vested (in dollars per share) | 102.69 | 65.18 | 47.47 |
Cancelled/forfeited (in dollars per share) | 78.72 | 98.10 | 58.51 |
Outstanding at the end of the year (in dollars per share) | $ 67.35 | $ 101.86 | $ 65.18 |
Shares Granted | |||
Outstanding at the beginning of the year (in shares) | 4 | 129 | 108 |
Awarded (in shares) | 98 | 191 | 155 |
Vested (in shares) | (4) | (126) | (102) |
Cancelled/forfeited (in shares) | (39) | (190) | (32) |
Outstanding at the end of the year (in shares) | 59 | 4 | 129 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the year (in dollars per share) | $ 87.14 | $ 50.32 | $ 27 |
Awarded (in dollars per share) | 64.33 | 86.63 | 50.45 |
Vested (in dollars per share) | 87.14 | 50.32 | 27 |
Cancelled/forfeited (in dollars per share) | 69.14 | 86.90 | 46.42 |
Outstanding at the end of the year (in dollars per share) | $ 61.17 | $ 87.14 | $ 50.32 |
Unrecognized compensation cost related to performance-based restricted share units granted | $ 400 | $ 20 |
Segment Information - Summary (
Segment Information - Summary (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Summary information by segment | |||
Number of principal business segments | segment | 3 | ||
Net revenues | $ 2,162,955 | $ 2,108,327 | $ 1,583,884 |
Costs of revenues | $ 493,428 | $ 452,040 | $ 414,137 |
Gross margin (as a percent) | 77.00% | 79.00% | 74.00% |
Operating expenses: | |||
Sales and marketing | $ 627,989 | $ 699,962 | $ 408,856 |
Product development | 372,818 | 345,942 | 267,392 |
General and administrative | 298,441 | 120,184 | 104,923 |
Goodwill and acquired intangibles impairment | 23,245 | ||
Total operating expenses | 1,299,248 | 1,189,333 | 781,171 |
Income (loss) from operations | 370,279 | 466,954 | 388,576 |
Interest and other income, net | 64,053 | 69,355 | 42,696 |
Income (loss) from equity method investments, net | 24 | 1,120 | (16,070) |
Realized gain (loss) on long-term investments | (2,410) | 2,729 | 132,007 |
Fair value changes through earnings on investments, net | 165,295 | 96,533 | |
Investment related impairment | (342,049) | (81,281) | (122,970) |
Income (loss) before income tax expense | 255,192 | 555,410 | 424,239 |
Income tax expense | (146,465) | (129,084) | (74,676) |
Net income (loss) | 108,727 | 426,326 | 349,563 |
Advertising | |||
Summary information by segment | |||
Net revenues | 1,743,617 | 1,789,285 | 1,311,866 |
Costs of revenues | 338,386 | 341,153 | 325,494 |
Non-advertising | |||
Summary information by segment | |||
Net revenues | 419,338 | 319,042 | 272,018 |
Costs of revenues | 155,042 | 110,887 | 88,643 |
Operating segments | Portal advertising and Fintech | |||
Summary information by segment | |||
Net revenues | 423,220 | 401,627 | 443,008 |
Costs of revenues | $ 188,747 | $ 186,100 | $ 187,011 |
Gross margin (as a percent) | 55.00% | 54.00% | 58.00% |
Operating expenses: | |||
Sales and marketing | $ 165,684 | $ 172,648 | $ 138,368 |
Product development | 88,374 | 96,069 | 73,999 |
General and administrative | 207,720 | 76,429 | 62,608 |
Goodwill and acquired intangibles impairment | 12,691 | ||
Total operating expenses | 461,778 | 357,837 | 274,975 |
Income (loss) from operations | (227,305) | (142,310) | (18,978) |
Interest and other income, net | 4,157 | 25,547 | 29,436 |
Income (loss) from equity method investments, net | 13,222 | 1,063 | (17,100) |
Realized gain (loss) on long-term investments | (3,022) | 3,016 | 131,993 |
Fair value changes through earnings on investments, net | (42,143) | 56,459 | |
Investment related impairment | (92,114) | (57,207) | (118,223) |
Income (loss) before income tax expense | (347,205) | (113,432) | 7,128 |
Income tax expense | (36,901) | (32,862) | (7,930) |
Net income (loss) | (384,106) | (146,294) | (802) |
Operating segments | Portal advertising and Fintech | Advertising | |||
Summary information by segment | |||
Net revenues | 216,440 | 290,215 | 320,473 |
Operating segments | Portal advertising and Fintech | Non-advertising | |||
Summary information by segment | |||
Net revenues | 206,780 | 111,412 | 122,535 |
Operating segments | Portal advertising | |||
Summary information by segment | |||
Net revenues | 216,440 | 290,215 | 320,473 |
Costs of revenues | $ 90,071 | $ 117,600 | $ 121,278 |
Gross margin (as a percent) | 58.00% | 59.00% | 62.00% |
Operating segments | Portal advertising | Advertising | |||
Summary information by segment | |||
Net revenues | $ 216,440 | $ 290,215 | $ 320,473 |
Operating segments | Fintech | |||
Summary information by segment | |||
Net revenues | 206,780 | 111,412 | 122,535 |
Costs of revenues | $ 98,676 | $ 68,500 | $ 65,733 |
Gross margin (as a percent) | 52.00% | 39.00% | 46.00% |
Operating segments | Fintech | Non-advertising | |||
Summary information by segment | |||
Net revenues | $ 206,780 | $ 111,412 | $ 122,535 |
Operating segments | Weibo | |||
Summary information by segment | |||
Net revenues | 1,766,914 | 1,718,518 | 1,150,054 |
Costs of revenues | $ 328,826 | $ 277,648 | $ 231,255 |
Gross margin (as a percent) | 81.00% | 84.00% | 80.00% |
Operating expenses: | |||
Sales and marketing | $ 465,339 | $ 527,424 | $ 275,537 |
Product development | 284,444 | 249,873 | 193,393 |
General and administrative | 90,721 | 43,755 | 42,315 |
Goodwill and acquired intangibles impairment | 10,554 | ||
Total operating expenses | 840,504 | 831,606 | 511,245 |
Income (loss) from operations | 597,584 | 609,264 | 407,554 |
Interest and other income, net | 59,896 | 43,808 | 13,260 |
Income (loss) from equity method investments, net | (13,198) | 57 | 1,030 |
Realized gain (loss) on long-term investments | 612 | (287) | 14 |
Fair value changes through earnings on investments, net | 207,438 | 40,074 | |
Investment related impairment | (249,935) | (24,074) | (4,747) |
Income (loss) before income tax expense | 602,397 | 668,842 | 417,111 |
Income tax expense | (109,564) | (96,222) | (66,746) |
Net income (loss) | 492,833 | 572,620 | 350,365 |
Operating segments | Weibo | Advertising | |||
Summary information by segment | |||
Net revenues | 1,530,211 | 1,499,180 | 996,745 |
Operating segments | Weibo | Non-advertising | |||
Summary information by segment | |||
Net revenues | 236,703 | 219,338 | 153,309 |
Eliminations | |||
Summary information by segment | |||
Net revenues | (27,179) | (11,818) | (9,178) |
Costs of revenues | (24,145) | (11,708) | (4,129) |
Operating expenses: | |||
Sales and marketing | (3,034) | (110) | (5,049) |
Total operating expenses | (3,034) | (110) | (5,049) |
Eliminations | Advertising | |||
Summary information by segment | |||
Net revenues | (3,034) | (110) | (5,352) |
Eliminations | Non-advertising | |||
Summary information by segment | |||
Net revenues | $ (24,145) | $ (11,708) | $ (3,826) |
Segment Information - By Geogra
Segment Information - By Geographic Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Company's geographic operations | |||
Net revenues | $ 2,162,955 | $ 2,108,327 | $ 1,583,884 |
Long-lived assets | 467,386 | 488,181 | 285,487 |
China | |||
Company's geographic operations | |||
Net revenues | 2,154,529 | 2,096,179 | 1,571,035 |
Long-lived assets | 466,727 | 487,844 | 285,208 |
International | |||
Company's geographic operations | |||
Net revenues | 8,426 | 12,148 | 12,849 |
Long-lived assets | $ 659 | $ 337 | $ 279 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value Measurements By Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Assets | |||
FVO Loan Investment (Note 20) | $ 121,131 | ||
Equity securities with readily determinable fair value | 336,554 | $ 165,936 | |
Financial instruments measured on a recurring basis | |||
Assets | |||
FVO Loan Investment (Note 20) | 121,131 | ||
Equity securities with readily determinable fair value | 251,003 | $ 93,262 | |
Total | 1,368,663 | 1,054,986 | |
Liabilities | |||
Guarantee liabilities | 43,677 | 10,952 | |
Financial instruments measured on a recurring basis | Money market funds | |||
Assets | |||
Cash and cash equivalents | 18,951 | 86,823 | |
Financial instruments measured on a recurring basis | Bank time deposits | |||
Assets | |||
Cash and cash equivalents | 977,578 | 874,901 | |
Financial instruments measured on a recurring basis | Quoted Prices in Active Market for Identical Assets (Level 1) | |||
Assets | |||
Equity securities with readily determinable fair value | 251,003 | 93,262 | |
Total | 269,954 | 180,085 | |
Financial instruments measured on a recurring basis | Quoted Prices in Active Market for Identical Assets (Level 1) | Money market funds | |||
Assets | |||
Cash and cash equivalents | 18,951 | 86,823 | |
Financial instruments measured on a recurring basis | Significant Other Observable Inputs (Level 2) | |||
Assets | |||
Total | 977,578 | 874,901 | |
Financial instruments measured on a recurring basis | Significant Other Observable Inputs (Level 2) | Bank time deposits | |||
Assets | |||
Cash and cash equivalents | 977,578 | 874,901 | |
Financial instruments measured on a recurring basis | Significant Unobservable Inputs (Level 3) | |||
Assets | |||
FVO Loan Investment (Note 20) | 121,131 | ||
Total | 121,131 | ||
Liabilities | |||
Guarantee liabilities | $ 43,677 | $ 10,952 |
Financial Instruments - Fair _2
Financial Instruments - Fair Value Measurements on a Recurring and Non-recurring Basis (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Key inputs used in investor option liability valuation | |||
Impairment on the acquired intangible assets | $ 0 | $ 0 | |
Goodwill impairment | $ 10,554,000 | ||
Guarantee liabilities | |||
Balance at the beginning of year | 10,952,000 | 10,143,000 | |
Provision at the inception of new loans | 70,120,000 | 39,291,000 | |
Payment for the guarantee | (34,507,000) | (37,082,000) | |
Subsequent adjustments to the provisions | (2,452,000) | (792,000) | |
Foreign exchange impacts | (436,000) | (608,000) | |
Balance at the end of the year | $ 43,677,000 | 10,952,000 | 10,143,000 |
Minimum | |||
Guarantee liabilities | |||
Expected net accumulative expected loss rates (as a percent) | 3.20% | ||
Maximum | |||
Guarantee liabilities | |||
Expected net accumulative expected loss rates (as a percent) | 3.70% | ||
Financial instruments measured on a recurring basis | |||
Key inputs used in investor option liability valuation | |||
Impairment charge for equity securities investments | 1,300,000 | ||
Non-recurring | |||
Key inputs used in investor option liability valuation | |||
Impairment on the acquired intangible assets | $ 0 | 12,700,000 | 0 |
Impairment on the remaining balance of investments | 215,900,000 | 15,500,000 | |
Goodwill impairment | 0 | 10,600,000 | 0 |
Non-recurring | Significant Unobservable Inputs (Level 3) | |||
Key inputs used in investor option liability valuation | |||
Impairment charges under cost method and equity method investments | $ 120,800,000 | ||
Impairment charge recognized for those investments without readily determinable fair values and equity method investments | $ 321,400,000 | $ 61,000,000 | |
Non-recurring | Significant Unobservable Inputs (Level 3) | Discounted cash flow model | Minimum | Discounted cash flow model | |||
Key inputs used in investor option liability valuation | |||
Fair value input of the privately held investments, discount curve of market interest rates (as a percent) | 12 | ||
Non-recurring | Significant Unobservable Inputs (Level 3) | Discounted cash flow model | Maximum | Discounted cash flow model | |||
Key inputs used in investor option liability valuation | |||
Fair value input of the privately held investments, discount curve of market interest rates (as a percent) | 23 |
Financial Instruments - Concent
Financial Instruments - Concentration of Risk (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)customer | Dec. 31, 2018USD ($)customer | Dec. 31, 2017customer | |
Concentration of Risk | |||
Minimum percentage of after-tax profit transferred by Chinese subsidiaries to general reserve fund (as a percent) | 10.00% | ||
Maximum percentage criteria for appropriation of after-tax profit of Chinese subsidiaries to general reserve fund (as a percent) | 50.00% | ||
Accounts receivable denominated in RMB | $ 601,876 | $ 527,897 | |
Current liabilities denominated in RMB | $ 1,719,203 | 1,143,661 | |
Percentage of consolidated net assets that restricted net assets did not exceed (as a percent) | 25.00% | ||
Exposure to credit loss | Cash, cash equivalents and short-term investments | China | |||
Concentration of Risk | |||
Cash, cash equivalents and short-term investments | $ 2,800,000 | $ 2,300,000 | |
Maximum term of original maturity of time deposits | 12 months | 12 months | |
Customer concentration risk | Consolidated net revenues benchmark | |||
Concentration of Risk | |||
Number of customers accounted for more than 10% | customer | 0 | 0 | 0 |
Customer concentration risk | Consolidated net accounts receivables benchmark | |||
Concentration of Risk | |||
Number of customers accounted for more than 10% | customer | 2 | 3 | |
Customer concentration risk | Consolidated net accounts receivables benchmark | Customer A | |||
Concentration of Risk | |||
Percentage of benchmark derived from specified source (as a percent) | 10.00% | 10.00% | |
Customer concentration risk | Consolidated net accounts receivables benchmark | Customer B | |||
Concentration of Risk | |||
Percentage of benchmark derived from specified source (as a percent) | 18.00% | 13.00% | |
Customer concentration risk | Consolidated net accounts receivables benchmark | Customer C | |||
Concentration of Risk | |||
Percentage of benchmark derived from specified source (as a percent) | 15.00% | ||
Currency concentration risk | Cash, cash equivalents, restricted cash and short-term investments | RMB | |||
Concentration of Risk | |||
Cash, cash equivalents and short-term investments | $ 1,400,000 | $ 1,200,000 | |
Percentage of benchmark derived from specified source (as a percent) | 44.00% | 49.00% | |
Currency concentration risk | Consolidated net accounts receivables benchmark | RMB | |||
Concentration of Risk | |||
Accounts receivable denominated in RMB | $ 601,300 | $ 527,900 | |
Currency concentration risk | Current liabilities | RMB | |||
Concentration of Risk | |||
Percentage of benchmark derived from specified source (as a percent) | 87.00% | 95.00% | |
Current liabilities denominated in RMB | $ 1,497,100 | $ 1,091,900 |
Convertible Debt, Unsecured S_2
Convertible Debt, Unsecured Senior Notes and Treasury Stock - Convertible Debt (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Jul. 31, 2019 | Oct. 31, 2017 | Nov. 30, 2013 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 01, 2016 | |
Convertible debt | |||||||
Proceeds from the issuance | $ 793,300,000 | ||||||
Net proceeds from issuance of notes | $ 879,293,000 | ||||||
Shares repurchased | $ 61,691,000 | $ 249,263,000 | 47,624,000 | ||||
2018 Notes | |||||||
Convertible debt | |||||||
Aggregate principal amount of notes issued | $ 800,000,000 | ||||||
Coupon rate of the convertible notes (as a percent) | 1.00% | ||||||
Denomination of principal amount of debt which is used for conversion calculation | $ 1,000 | ||||||
Conversion price of the Notes (in dollars per share) | $ 123.70 | ||||||
Net proceeds from issuance of notes | $ 783,200,000 | ||||||
Issuance cost | 16,800,000 | ||||||
Shares repurchased | $ 100,000,000 | ||||||
Interest rate of convertible notes (as a percent) | 1.00% | ||||||
Redemption price (as a percent) | 100.00% | ||||||
Redemption price of Notes upon fundamental change (as a percent) | 100.00% | ||||||
Principal amount of convertible debt repurchased upon the exercise of the put option | $ 646,900,000 | ||||||
Principal amount of convertible debt converted into ordinary shares | 7,000 | ||||||
Interest expenses | 1,400,000 | $ 4,200,000 | |||||
2022 Notes | |||||||
Convertible debt | |||||||
Aggregate principal amount of notes issued | $ 900,000,000 | $ 900,000,000 | |||||
Coupon rate of the convertible notes (as a percent) | 1.25% | 1.25% | |||||
Denomination of principal amount of debt which is used for conversion calculation | $ 1,000 | ||||||
Conversion price of the Notes (in dollars per share) | $ 133.27 | ||||||
Net proceeds from issuance of notes | $ 879,300,000 | ||||||
Issuance cost | $ 20,700,000 | ||||||
Interest rate of convertible notes (as a percent) | 1.25% | ||||||
Interest expenses | $ 15,400,000 | $ 15,400,000 | |||||
2024 Notes | |||||||
Convertible debt | |||||||
Aggregate principal amount of notes issued | 800,000,000 | ||||||
Issuance cost | $ 6,700,000 | ||||||
Interest rate of convertible notes (as a percent) | 3.50% | ||||||
Interest expenses | 14,500,000 | ||||||
2024 | |||||||
Convertible debt | |||||||
Aggregate principal amount of notes issued | $ 800,000,000 | ||||||
Coupon rate of the convertible notes (as a percent) | 3.50% |
Convertible Debt, Unsecured S_3
Convertible Debt, Unsecured Senior Notes and Treasury Stock - Treasury Stock (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 30, 2019 | Aug. 31, 2018 | Feb. 29, 2016 | |
Treasury Stock | ||||||
Payment for repurchase of ordinary shares | $ 61,691 | $ 249,263 | $ 47,624 | |||
2016 Program | ||||||
Treasury Stock | ||||||
Number of ordinary shares repurchased | 3.4 | |||||
Payment for repurchase of ordinary shares | $ 302,600 | |||||
2016 Program | Maximum | ||||||
Treasury Stock | ||||||
Amount authorized to repurchase | $ 500,000 | |||||
2018 Program | ||||||
Treasury Stock | ||||||
Amount authorized to repurchase | $ 500,000 | |||||
Number of ordinary shares repurchased | 2.2 | |||||
Payment for repurchase of ordinary shares | $ 82,100 | |||||
2018 Program | Maximum | ||||||
Treasury Stock | ||||||
Amount authorized to repurchase | $ 500,000 | |||||
2020 Program | Maximum | ||||||
Treasury Stock | ||||||
Amount authorized to repurchase | $ 500,000 |
Commitments and Contingencies -
Commitments and Contingencies - Operating leases, purchase, and capital (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating lease commitments | |||
Rental expense of operating lease | $ 17,000 | $ 17,900 | $ 13,700 |
Operating leases commitments | |||
Total future lease payments | 26,681 | ||
More than Five Years | 0 | ||
Office premises | |||
Operating leases commitments | |||
Total future lease payments | 26,681 | ||
Less than One Year | 13,101 | ||
One to Three Years | 13,492 | ||
Three to Five Years | 88 | ||
More than Five Years | 0 | ||
Capital commitments | |||
Purchase commitments | |||
Total | 5,587 | ||
Less than One Year | 5,025 | ||
One to Three Years | 562 | ||
Three to Five Years | 0 | ||
More than Five Years | 0 | ||
Purchase commitments | |||
Purchase commitments | |||
Total | 626,477 | ||
Less than One Year | 591,330 | ||
One to Three Years | 35,084 | ||
Three to Five Years | 63 | ||
More than Five Years | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Informations (Details) $ in Thousands | Sep. 28, 2017case | Oct. 31, 2017USD ($) | Aug. 31, 2017case | Jun. 30, 2017case | Dec. 31, 2019USD ($)item | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jul. 31, 2019USD ($) |
Other commitment | |||||||||
Total | $ 2,394,642 | $ 2,394,642 | |||||||
Less than One Year | 537,882 | 537,882 | |||||||
One to Three Years | 1,000,760 | 1,000,760 | |||||||
Three to Five Years | 856,000 | 856,000 | |||||||
More than Five Years | $ 0 | 0 | |||||||
Operating Expenses | $ 1,299,248 | $ 1,189,333 | $ 781,171 | ||||||
Number of other claims, lawsuits, investigations and proceedings, including unasserted claims that are probable to be assessed, are likely to have, a material change on the Company's financial position results of operations or cash flow | item | 0 | 0 | |||||||
Litigation of Weibo's Public Filings Contained Material Misstatements and Omissions [Member] | |||||||||
Other commitment | |||||||||
Number of cases | case | 2 | 2 | 2 | ||||||
Equity investments | |||||||||
Other commitment | |||||||||
Total | $ 115,022 | $ 115,022 | |||||||
Less than One Year | 115,022 | 115,022 | |||||||
One to Three Years | 0 | 0 | |||||||
Three to Five Years | 0 | 0 | |||||||
More than Five Years | 0 | 0 | |||||||
Litigation reserve | |||||||||
Other commitment | |||||||||
Total | 125,809 | 125,809 | |||||||
Less than One Year | 125,809 | 125,809 | |||||||
One to Three Years | 0 | 0 | |||||||
Three to Five Years | 0 | 0 | |||||||
More than Five Years | 0 | 0 | |||||||
Operating Expenses | 125,800 | ||||||||
2022 Notes | |||||||||
Other commitment | |||||||||
Aggregate principal amount of notes issued | $ 900,000 | 900,000 | $ 900,000 | ||||||
Coupon rate of the convertible notes (as a percent) | 1.25% | 1.25% | |||||||
2022 Notes | Future maximum commitment in connection with issuance of debt | |||||||||
Other commitment | |||||||||
Total | 933,750 | $ 933,750 | |||||||
Less than One Year | 11,250 | 11,250 | |||||||
One to Three Years | 922,500 | 922,500 | |||||||
Three to Five Years | 0 | 0 | |||||||
More than Five Years | 0 | 0 | |||||||
2024 Notes | |||||||||
Other commitment | |||||||||
Aggregate principal amount of notes issued | $ 800,000 | ||||||||
2024 Notes | Future maximum commitment in connection with issuance of debt | |||||||||
Other commitment | |||||||||
Total | 940,000 | 940,000 | |||||||
Less than One Year | 28,000 | 28,000 | |||||||
One to Three Years | 56,000 | 56,000 | |||||||
Three to Five Years | 856,000 | 856,000 | |||||||
More than Five Years | 0 | 0 | |||||||
Short-term bank loans | Future maximum commitment in connection with issuance of debt | |||||||||
Other commitment | |||||||||
Total | 82,929 | 82,929 | |||||||
Less than One Year | 82,929 | 82,929 | |||||||
One to Three Years | 0 | 0 | |||||||
Three to Five Years | 0 | 0 | |||||||
More than Five Years | 0 | 0 | |||||||
Funding debts | Future maximum commitment in connection with issuance of debt | |||||||||
Other commitment | |||||||||
Total | 197,132 | 197,132 | |||||||
Less than One Year | 174,872 | 174,872 | |||||||
One to Three Years | 22,260 | 22,260 | |||||||
Three to Five Years | 0 | 0 | |||||||
More than Five Years | 0 | 0 | |||||||
2024 | |||||||||
Other commitment | |||||||||
Aggregate principal amount of notes issued | $ 800,000 | $ 800,000 | |||||||
Coupon rate of the convertible notes (as a percent) | 3.50% |