Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 31, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SOHU COM INC | ||
Entity Central Index Key | 1,104,188 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Trading Symbol | SOHU | ||
Entity Public Float | $ 1,360 | ||
Entity Common Stock, Shares Outstanding | 38,666,434 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 1,245,205 | $ 876,340 |
Restricted time deposits | 227,285 | 282,186 |
Short-term investments | 174,515 | 191,577 |
Accounts receivable, net | 273,617 | 230,401 |
Prepaid and other current assets (including $1,625 and $15,820, respectively, due from a related party as of December 31, 2014 and 2015) | 158,890 | 116,704 |
Total current assets | 2,079,512 | 1,697,208 |
Fixed assets, net | 508,692 | 540,778 |
Goodwill | 154,219 | 303,426 |
Long-term investments, net | 62,093 | 24,067 |
Intangible assets, net | 55,415 | 110,691 |
Restricted time deposits | 136,694 | 144,562 |
Prepaid non-current assets | 6,254 | 8,933 |
Other assets | 39,315 | 37,344 |
Total assets | 3,042,194 | 2,867,009 |
LIABILITIES | ||
Accounts payable (including accounts payable of consolidated variable interest entities ("VIEs") without recourse to the Company of $3,495 and $23,757, respectively, as of December 31, 2014 and 2015 ) | 129,025 | 127,758 |
Accrued liabilities (including accrued liabilities of consolidated VIEs without recourse to the Company of $78,051 and $79,012, respectively, as of December 31, 2014 and 2015) | 309,657 | 239,231 |
Receipts in advance and deferred revenue (including receipts in advance and deferred revenue of consolidated VIEs without recourse to the Company of $53,641 and $55,319, respectively, as of December 31, 2014 and 2015) | 135,385 | 127,740 |
Accrued salary and benefits (including accrued salary and benefits of consolidated VIEs without recourse to the Company of $6,300 and $11,357, respectively, as of December 31, 2014 and 2015) | 99,631 | 108,741 |
Taxes payable (including taxes payable of consolidated VIEs without recourse to the Company of $10,767 and $21,424, respectively, as of December 31, 2014 and 2015) | 67,480 | 33,380 |
Deferred tax liabilities (including deferred tax liabilities of consolidated VIEs without recourse to the Company of $1,669 and $1,490, respectively, as of December 31, 2014 and 2015) | 24,884 | 22,356 |
Short-term bank loans (including short-term bank loans of consolidated VIEs without recourse to the Company of nil as of both December 31, 2014 and 2015) | 344,500 | 25,500 |
Other short-term liabilities (including other short-term liabilities of consolidated VIEs without recourse to the Company of $30,893 and $106,976, respectively, as of December 31, 2014 and 2015, and due to a related party of nil and $13,005, respectively, as of December 31, 2014 and 2015.) | 154,017 | 105,644 |
Contingent consideration (including contingent consideration of consolidated VIEs without recourse to the Company of $3,935 and nil, respectively, as of December 31, 2014 and 2015) | 0 | 3,935 |
Total current liabilities | 1,264,579 | 794,285 |
Long-term accounts payable (including long-term accounts payable of consolidated VIEs without recourse to the Company of $21,534 and $24,575, respectively, as of December 31, 2014 and 2015) | 4,600 | 5,143 |
Long-term bank loans (including long-term bank loans of consolidated VIEs without recourse to the Company of nil as of both December 31, 2014 and 2015) | 0 | 344,500 |
Long-term taxes payable (including long-term taxes payable of consolidated VIEs without recourse to the Company of nil as of both December 31, 2014 and 2015) | 24,732 | 24,829 |
Deferred tax liabilities (including deferred tax liabilities of consolidated VIEs without recourse to the Company of $1,799 and nil, respectively, as of December 31, 2014 and 2015) | 17,531 | 7,417 |
Contingent consideration (including contingent consideration of consolidated VIEs without recourse to the Company of $1,929 and nil, respectively, as of December 31, 2014 and 2015) | 0 | 1,929 |
Total long-term liabilities | 46,863 | 383,818 |
Total liabilities | $ 1,311,442 | $ 1,178,103 |
Commitments and contingencies | ||
SHAREHOLDERS' EQUITY | ||
Common stock: $0.001 par value per share (75,400 shares authorized; 38,507 shares and 38,653 shares, respectively, issued and outstanding as of December 31, 2014 and 2015) | $ 45 | $ 44 |
Additional paid-in capital | 798,357 | 650,148 |
Treasury stock (5,889 shares as of both December 31, 2014 and 2015) | (143,858) | (143,858) |
Accumulated other comprehensive income | 50,151 | 109,402 |
Retained earnings | 536,327 | 585,925 |
Total Sohu.com Inc. shareholders' equity | 1,241,022 | 1,201,661 |
Noncontrolling interest | 489,730 | 487,245 |
Total shareholders' equity | 1,730,752 | 1,688,906 |
Total liabilities and shareholders' equity | $ 3,042,194 | $ 2,867,009 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Due from a related party | $ 15,820 | $ 1,625 |
Accounts payable | 129,025 | 127,758 |
Accrued liabilities | 309,657 | 239,231 |
Receipts in advance and deferred revenue | 135,385 | 127,740 |
Accrued salary and benefits | 99,631 | 108,741 |
Taxes payable | 67,480 | 33,380 |
Deferred tax liabilities | 24,884 | 22,356 |
Short-term bank loans | 344,500 | 25,500 |
Other short-term liabilities | 154,017 | 105,644 |
Due to a related party | 13,005 | 0 |
Contingent consideration | 0 | 3,935 |
Long-term accounts payable | 4,600 | 5,143 |
Long-term bank loans | 0 | 344,500 |
Long-term taxes payable | 24,732 | 24,829 |
Deferred tax liabilities | 17,531 | 7,417 |
Contingent consideration | $ 0 | $ 1,929 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 75,400 | 75,400 |
Common stock, shares outstanding (in shares) | 38,653 | 38,507 |
Treasury stock, shares (in shares) | 5,889 | 5,889 |
Consolidated VIEs [Member] | ||
Accounts payable | $ 23,757 | $ 3,495 |
Accrued liabilities | 79,012 | 78,051 |
Receipts in advance and deferred revenue | 55,319 | 53,641 |
Accrued salary and benefits | 11,357 | 6,300 |
Taxes payable | 21,424 | 10,767 |
Deferred tax liabilities | 1,490 | 1,669 |
Short-term bank loans | 0 | 0 |
Other short-term liabilities | 106,976 | 30,893 |
Contingent consideration | 0 | 3,935 |
Long-term accounts payable | 24,575 | 21,534 |
Long-term bank loans | 0 | 0 |
Long-term taxes payable | 0 | 0 |
Deferred tax liabilities | 0 | 1,799 |
Contingent consideration | $ 0 | $ 1,929 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Brand advertising | $ 577,114 | $ 541,158 | $ 428,526 |
Search and search-related | 539,521 | 357,839 | 198,915 |
Subtotal of online advertising revenues | 1,116,635 | 898,997 | 627,441 |
Online games | 636,846 | 652,008 | 669,168 |
Others | 183,610 | 122,072 | 103,665 |
Total revenues | 1,937,091 | 1,673,077 | 1,400,274 |
Cost of revenues: | |||
Brand advertising | 383,187 | 307,708 | 221,659 |
Search and search-related | 238,944 | 163,918 | 109,139 |
Subtotal of cost of online advertising revenues | 622,131 | 471,626 | 330,798 |
Online games | 156,315 | 142,549 | 93,307 |
Others | 80,618 | 71,459 | 55,945 |
Total cost of revenues | 859,064 | 685,634 | 480,050 |
Gross profit | 1,078,027 | 987,443 | 920,224 |
Operating expenses: | |||
Product development | 398,143 | 409,285 | 276,120 |
Sales and marketing | 383,931 | 526,514 | 351,653 |
General and administrative | 173,160 | 204,325 | 108,970 |
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 40,324 | 52,282 | 0 |
Total operating expenses | 995,558 | 1,192,406 | 736,743 |
Operating profit /(loss) | 82,469 | (204,963) | 183,481 |
Other income | 74,526 | 9,959 | 12,721 |
Net interest income | 23,459 | 30,977 | 27,829 |
Exchange difference | 5,337 | (1,142) | (6,660) |
Income /(loss) before income tax expense | 185,791 | (165,169) | 217,371 |
Income tax expense | 76,936 | 6,050 | 50,422 |
Net income /(loss) | 108,855 | (171,219) | 166,949 |
Less: Net income attributable to the mezzanine-classified noncontrolling interest shareholders | 0 | 0 | 17,780 |
Net income /(loss) attributable to the noncontrolling interest shareholders | 146,542 | (32,309) | 82,044 |
Dividend or deemed dividend to a noncontrolling Sogou Series A Preferred shareholder | 11,911 | 27,747 | 82,423 |
Net loss attributable to Sohu.com Inc. | (49,598) | (166,657) | (15,298) |
Net income /(loss) | 108,855 | (171,219) | 166,949 |
Other comprehensive income /(loss) | (87,655) | (8,390) | 47,125 |
Comprehensive income /(loss) | 21,200 | (179,609) | 214,074 |
Less: Comprehensive income attributable to the mezzanine-classified noncontrolling interest shareholders | 0 | 0 | 17,780 |
Comprehensive income /(loss) attributable to noncontrolling interest shareholders | 118,138 | (33,797) | 92,407 |
Dividend or deemed dividend to a noncontrolling Sogou Series A Preferred shareholder | 11,911 | 27,747 | 82,423 |
Comprehensive income /(loss) attributable to Sohu.com Inc. | $ (108,849) | $ (173,559) | $ 21,464 |
Basic net loss per share attributable to Sohu.com Inc. | $ (1.28) | $ (4.33) | $ (0.40) |
Shares used in computing basic net loss per share attributable to Sohu.com Inc. | 38,598 | 38,468 | 38,255 |
Diluted net loss per share attributable to Sohu.com Inc. | $ (1.32) | $ (4.43) | $ (0.47) |
Shares used in computing diluted net loss per share attributable to Sohu.com Inc. | 38,598 | 38,468 | 38,502 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income /(loss) | $ 108,855 | $ (171,219) | $ 166,949 |
Adjustments to reconcile net income /(loss) to net cash provided by operating activities: | |||
Amortization of intangible assets and purchased video content in prepaid expense | 159,945 | 130,044 | 75,741 |
Depreciation | 77,421 | 78,417 | 54,948 |
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 40,324 | 52,282 | 0 |
Share-based compensation expense | 53,443 | 57,264 | 10,429 |
Impairment loss of other assets | 17,837 | 1,687 | 3,624 |
Investment (income) /loss from investments in debt securities and equity investments | 7,509 | (1,370) | (5,564) |
Provision /(Reversal) for allowance for doubtful accounts | 2,175 | (4) | (120) |
Contribution from noncontrolling shareholders | 0 | 0 | 4,218 |
Change in fair value of China Web put option | 0 | (2,304) | (2,160) |
Gain from sale of the 7Road business and certain Changyou subsidiaries | (55,139) | 0 | 0 |
Gain from sale of equity investments | (11,942) | 0 | 0 |
Change in fair value of short-term investments | (1,331) | (1,611) | (2,452) |
Others | 968 | (38) | 1,164 |
Changes in assets and liabilities, net of acquisition: | |||
Accounts receivable | (61,917) | (74,428) | (49,432) |
Prepaid and other assets | 101 | 30,577 | (51,172) |
Accounts payable | 2,208 | (11,144) | 38,333 |
Receipts in advance and deferred revenue | 11,782 | 14,353 | 12,562 |
Taxes payable | 29,573 | (16,256) | 17,171 |
Deferred tax | 6,020 | (20,629) | 3,796 |
Accrued liabilities and other short-term liabilities | 118,221 | 86,662 | 125,898 |
Net cash provided by operating activities | 506,053 | 152,283 | 403,933 |
Cash flows from investing activities: | |||
Purchase of fixed assets | (101,076) | (90,896) | (113,842) |
Purchase of intangible and other assets | (142,212) | (119,290) | (98,006) |
Purchase of long-term investments | (39,547) | (26,135) | 0 |
Funds to a third party | (20,033) | 0 | 0 |
Matching loan to a related party | (13,086) | 0 | 0 |
Proceeds received from sale of subsidiaries, net of cash disposed | 184,354 | 0 | 0 |
Cash received /(paid) related to restricted time deposits, net | 40,372 | 5,763 | (177,701) |
Proceeds received from sale of equity investment | 15,938 | 0 | 0 |
Proceeds from /(purchase of) short-term investments, net | 5,511 | (186,508) | 54,398 |
Acquisitions, net of cash acquired | 0 | (106,369) | (33,685) |
Purchase of noncontrolling interest in 7Road | 0 | 0 | (76,010) |
Proceeds received from debt securities at maturity | 0 | 82,009 | 0 |
Other cash proceeds related to investing activities | 12 | 2,952 | 3,217 |
Net cash used in investing activities | (69,767) | (438,474) | (441,629) |
Cash flows from financing activities: | |||
Matching loan from a related party | 12,900 | 0 | 0 |
Issuance of common stock | 2,124 | 611 | 1,915 |
Exercise of share-based awards in subsidiary | 7 | 425 | 1,794 |
Repayments of loans from offshore banks | (25,500) | (410,194) | 0 |
Repurchase of Sogou Series A Preferred Shares from noncontrolling shareholders | (21,015) | (47,285) | 0 |
Repurchase of Changyou American depositary shares ("ADSs") | (14,506) | (3,577) | (17,240) |
Issuance of Sogou Series B Preferred Shares and Class B Ordinary Shares | 0 | 0 | 476,948 |
Repurchase of Sogou Class A Ordinary Shares from noncontrolling shareholders | 0 | (24,679) | 0 |
Portion of Sogou special dividend distributed to holders of Series A Preferred Shares other than Sohu | 0 | 0 | (139,700) |
Proceeds of loans from offshore banks | 0 | 370,000 | 167,000 |
Payment of contingent consideration | 0 | (2,813) | (19,736) |
Proceeds received from early exercise of share-based awards in subsidiary | 0 | 0 | 5,278 |
Payment of transaction expenses for issuance of Sogou Series B Preferred Shares and Class B Ordinary Shares | 0 | 0 | (5,918) |
Other cash proceeds /(payments) related to financing activities | 2,874 | (5,298) | 0 |
Net cash provided by /(used in) financing activities | (43,116) | (122,810) | 470,341 |
Effect of exchange rate changes on cash and cash equivalents | (24,305) | (1,947) | 21,108 |
Net increase /(decrease) in cash and cash equivalents | 368,865 | (410,948) | 453,753 |
Cash and cash equivalents at beginning of year | 876,340 | 1,287,288 | 833,535 |
Cash and cash equivalents at end of year | 1,245,205 | 876,340 | 1,287,288 |
Supplemental cash flow disclosures: | |||
Cash paid for income taxes | (43,988) | (5,262) | (50,188) |
Cash paid for interest expense | (7,235) | (6,283) | (8,812) |
Barter transactions | 1,808 | 1,651 | 380 |
Supplemental schedule of non-cash investing activity: | |||
Consideration payable for acquisitions and equity investment | $ 5,722 | $ 5,000 | $ 29,555 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] |
Beginning balance at Dec. 31, 2012 | $ 1,315,217 | $ 44 | $ 378,311 | $ (143,858) | $ 79,542 | $ 770,184 | $ 230,994 |
Issuance of common stock | 1,915 | 0 | 1,915 | 0 | 0 | 0 | 0 |
Repurchase of Changyou ADSs | (17,240) | 0 | (11,678) | 0 | 0 | 0 | (5,562) |
Share-based compensation expense | 10,350 | 0 | 1,056 | 0 | 0 | 0 | 9,294 |
Settlement of share-based awards in subsidiary | 1,792 | 0 | 16,070 | 0 | 0 | 0 | (14,278) |
Acquisition of the RaidCall Business | 17,178 | 0 | 0 | 0 | 0 | 0 | 17,178 |
Acquisition of noncontrolling interest in a subsidiary | 2,257 | 0 | 1,517 | 0 | 0 | 0 | 740 |
Consideration received for the issuance of Sogou shares to Tencent, net of transaction expenses | 471,907 | 0 | 149,053 | 0 | 0 | 0 | 322,854 |
Contribution from noncontrolling shareholders | 4,218 | 0 | 4,218 | 0 | 0 | 0 | 0 |
Direct tax impact of Sogou-Tencent Transactions | (21,420) | 0 | (21,420) | 0 | 0 | 0 | 0 |
Special dividend paid to noncontrolling Sogou Series A Preferred shareholders | (139,700) | 0 | 86,335 | 0 | 0 | (82,423) | (143,612) |
Repurchase /put options for Sogou Series A Preferred Shares | (6,048) | 0 | (3,744) | 0 | 0 | (2,304) | 0 |
Net income /(loss) attributable to Sohu.com Inc. and noncontrolling interest shareholders | 149,169 | 0 | 0 | 0 | 0 | 67,125 | 82,044 |
Accumulated other comprehensive income /(loss) | 47,125 | 0 | 0 | 0 | 36,762 | 0 | 10,363 |
Ending balance at Dec. 31, 2013 | 1,836,720 | 44 | 601,633 | (143,858) | 116,304 | 752,582 | 510,015 |
Issuance of common stock | 611 | 0 | 611 | 0 | 0 | 0 | 0 |
Repurchase of Changyou ADSs | (3,577) | 0 | (2,432) | 0 | 0 | 0 | (1,145) |
Repurchase of Sogou Series A Preferred Shares from noncontrolling shareholders | (47,285) | 0 | 26,276 | 0 | 0 | (27,747) | (45,814) |
Repurchase of Sogou Class A Ordinary Shares from noncontrolling shareholders | (24,679) | 0 | 0 | 0 | 0 | 0 | (24,679) |
Exercise of right to repurchase from China Web | 1,584 | 0 | 1,584 | 0 | 0 | 0 | 0 |
Purchase of equity interests of a VIE from a third party shareholder | (809) | 0 | 11 | 0 | 0 | 0 | (820) |
Disposal of a subsidiary | (652) | 0 | 0 | 0 | 0 | 0 | (652) |
Share-based compensation expense | 57,226 | 0 | 11,545 | 0 | 0 | 0 | 45,681 |
Settlement of share-based awards in subsidiary | 809 | 0 | 12,828 | 0 | 0 | 0 | (12,019) |
Acquisition of MoboTap | 53,424 | 0 | 0 | 0 | 0 | 0 | 53,424 |
Acquisition of noncontrolling interest in a subsidiary | (4,857) | 0 | (1,908) | 0 | 0 | 0 | (2,949) |
Net income /(loss) attributable to Sohu.com Inc. and noncontrolling interest shareholders | (171,219) | 0 | 0 | 0 | 0 | (138,910) | (32,309) |
Accumulated other comprehensive income /(loss) | (8,390) | 0 | 0 | 0 | (6,902) | 0 | (1,488) |
Ending balance at Dec. 31, 2014 | 1,688,906 | 44 | 650,148 | (143,858) | 109,402 | 585,925 | 487,245 |
Issuance of common stock | 2,126 | 1 | 2,125 | 0 | 0 | 0 | 0 |
Repurchase of Changyou ADSs | (14,506) | 0 | (9,971) | 0 | 0 | 0 | (4,535) |
Repurchase of Sogou Series A Preferred Shares from noncontrolling shareholders | (21,329) | 0 | 90,719 | 0 | 0 | (11,911) | (100,137) |
Share-based compensation expense | 53,561 | 0 | 30,181 | 0 | 0 | 0 | 23,380 |
Settlement of share-based awards in subsidiary | 516 | 0 | 34,697 | 0 | 0 | 0 | (34,181) |
Acquisition of noncontrolling interest in a subsidiary | 0 | 0 | 458 | 0 | 0 | 0 | (458) |
Noncontrolling interest recognized in domestic companies | 278 | 0 | 0 | 0 | 0 | 0 | 278 |
Net income /(loss) attributable to Sohu.com Inc. and noncontrolling interest shareholders | 108,855 | 0 | 0 | 0 | 0 | (37,687) | 146,542 |
Accumulated other comprehensive income /(loss) | (87,655) | 0 | 0 | 0 | (59,251) | 0 | (28,404) |
Ending balance at Dec. 31, 2015 | $ 1,730,752 | $ 45 | $ 798,357 | $ (143,858) | $ 50,151 | $ 536,327 | $ 489,730 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Organization and Nature of Operations [Abstract] | |
Organization and Nature of Operations | 1. Organization and Nature of Operations Sohu.com Inc. (NASDAQ: SOHU), a Delaware corporation organized in 1996, is a leading Chinese online media, search and game service group providing comprehensive online products and services on PCs and mobile devices in the People’s Republic of China (the “PRC” or “China”). Sohu.com Inc.’s businesses are conducted by Sohu.com Inc. and its subsidiaries and VIEs (collectively referred to as the “Sohu Group” or “the Group”). The Sohu Group consists of Sohu, which when referred to in this report, unless the context requires otherwise, excludes the businesses and the corresponding subsidiaries and VIEs of Sogou Inc. (“Sogou”) and Changyou.com Limited (“Changyou”), Sogou and Changyou. Sogou and Changyou are indirect controlled subsidiaries of Sohu.com Inc. Sohu is a leading Chinese language online media content and services provider. Sogou is a leading online search, client software and mobile Internet product provider in China. Changyou is a leading online game developer and operator in China as measured by the popularity of its PC game Tian Long Ba Bu (“TLBB”) and its mobile game TLBB 3D, and engages primarily in the development, operation and licensing of online games for PCs and mobile devices. Most of the Group’s operations are conducted through the Group’s indirect wholly-owned and majority-owned China-based subsidiaries and VIEs. Through the operation of Sohu, Sogou and Changyou, the Sohu Group generates online advertising revenues, including brand advertising revenues and search and search-related revenues (which were previously known as search and Web directory revenues); online games revenues; and others revenues. Online advertising and online games are the Group’s core businesses. In the year ended December 31, 2015, total revenues generated by Sohu, Sogou and Changyou were approximately $1.94 billion. Sohu’s Business Brand Advertising Business Sohu’s main business is the brand advertising business, which offers to users, over Sohu’s matrices of Chinese language online media, various content, products and services across multiple Internet-enabled devices such as PCs, mobile phones and tablets. The majority of Sohu’s products and services are provided through Sohu Media Portal, Sohu Video and Focus. • Sohu Media Portal. • Sohu Video. • Focus. Revenues generated by the brand advertising business are classified as brand advertising revenues in the Sohu Group’s consolidated statements of comprehensive income. Others Business Sohu also engages in the others business, which includes the filming business, mobile-related services, sub-licensing of purchased video content to third parties, and paid subscription services. Revenues generated by Sohu from the others business are classified as others revenues in the Sohu Group’s consolidated statements of comprehensive income. Sogou’s Business Search and Search-related Business The search and search-related business primarily offers advertisers pay-for-click services, as well as online marketing services on Web directories operated by Sogou. Pay-for-click services enable advertisers’ promotional links to be displayed on the Sogou search result pages and Sogou Website Alliance members’ Websites where the links are relevant to the subject and content of such Web pages. Both pay-for-click services and online marketing services on Web directories operated by Sogou expand distribution of its advertisers’ promotional links and advertisements by leveraging traffic on Sogou Website Alliance members’ Websites. The search and search-related business benefits significantly from Sogou’s collaboration with Tencent Holdings Limited (together with its subsidiaries, “Tencent”), which provides Sogou access to traffic generated from users of products and services provided by Tencent. Revenues generated by the search and search-related business are classified as search and search-related revenues in the Sohu Group’s consolidated statements of comprehensive income. Others Business Sogou also engages in the others business primarily by offering Internet value-added services ( “IVAS”) with respect to the operation of Web games and mobile games developed by third parties, as well as other services and products provided to users. Revenues generated by Sogou from the others business are classified as others revenues in the Sohu Group’s consolidated statements of comprehensive income. Changyou’s Business Changyou has three businesses, consisting of the online game business, the platform channel business and the others business. Online Game Business Changyou’s online game business offers to game players PC games, which are interactive online games that are accessed and played simultaneously by hundreds of thousands of game players through personal computers and require that local client-end game access software be installed on the computers used; mobile games, which are played on mobile devices and require an Internet connection; and Web games, which are online games that are played through a Web browser with no local game software installation requirements. Web games became a relatively insignificant part of Changyou’s online games business following the sale of 7Road’s operating company Shenzhen 7Road in August 2015. Changyou’s games are operated under the item-based revenue model, meaning game players can play the games for free, but can choose to pay for virtual items, which are non-physical items that game players can purchase and use within a game, such as gems, pets, fashion items, magic medicine, riding animals, hierograms, skill books and fireworks. Revenues derived from the operation of online games are classified as online game revenues in the Sohu Group’s consolidated statements of comprehensive income. Changyou’s flagship game is TLBB. For the year ended December 31, 2015, revenues from TLBB were $315.6 million, accounting for approximately 50% of Changyou’s online game revenues, approximately 41% of Changyou’s total revenues and 16% of the Sohu Group’s total revenues. Platform Channel Business Changyou’s platform channel business consists primarily of the operation of the 17173.com Website, the Dolphin Browser and RaidCall. The 17173.com Website, one of the leading game information portals in China, provides news, electronic forums, online videos and other information services on online games to game players. The Dolphin Browser is a gateway to a host of user activities on mobile devices, with the majority of its users based in Europe, Russia and Japan. RaidCall provides online music and entertainment services, primarily in Taiwan. Revenues generated by the 17173.com Website are classified as brand advertising revenues and revenues generated by the Dolphin Browser and RaidCall are classified as others revenues in the Group’s consolidated statements of comprehensive income. Others Business Changyou also operates a cinema advertising business, which consists of Changyou’s offering of pre-film cinema advertising slots, which are advertisements shown before the screening of a movie in a cinema theatre. Revenues generated by Changyou’s cinema advertising business are classified as others revenues in the Sohu Group’s consolidated statements of comprehensive income. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Accounting Standards The consolidated financial statements have been prepared on a historical cost basis to reflect the financial position and results of operations of the Sohu Group in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Use of Estimates The preparation of these financial statements requires the Sohu Group to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going basis, the Group evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Identified below are the accounting policies that reflect the Group’s more significant estimates and judgments, and those that the Group believes are the most critical to fully understanding and evaluating its consolidated financial statements. Basis of Consolidation and Recognition of Noncontrolling Interest The consolidated financial statements include the accounts of Sohu.com Inc. and its wholly-owned and majority-owned subsidiaries and consolidated VIEs. All intercompany transactions are eliminated. VIE Consolidation The Sohu Group’s VIEs are wholly or partially owned by certain employees of the Group as nominee shareholders. For consolidated VIEs, management made evaluations of the relationships between the Sohu Group and the VIEs and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluation, management also took into account the fact that, as a result of such contractual arrangements, the Group controls the shareholders’ voting interests in these VIEs. As a result of such evaluation, management concluded that the Sohu Group is the primary beneficiary of its consolidated VIEs. Noncontrolling Interest Recognition Noncontrolling interests are recognized to reflect the portion of the equity of majority-owned subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholders. The primary majority-owned subsidiaries and VIEs of the Sohu Group which are consolidated in the Group’s consolidated financial statements with noncontrolling interest recognized are Sogou and Changyou. Noncontrolling Interest for Sogou Since Sohu.com Inc. controls the election of the Board of Directors of Sogou, Sohu.com Inc. is Sogou’s controlling shareholder. Therefore, Sogou’s financial results have been consolidated with those of Sohu.com Inc. for all periods presented. To reflect the economic interest in Sogou held by shareholders other than Sohu.com Inc. (the “Sogou noncontrolling shareholders”), Sogou’s net income /(loss) attributable to the Sogou noncontrolling shareholders is recorded as noncontrolling interest in the Sohu Group’s consolidated statements of comprehensive income. Sogou’s cumulative results of operations attributable to the Sogou noncontrolling shareholders, along with changes in shareholders’ equity /(deficit) and adjustment for share-based compensation expense in relation to those share-based awards which are unvested and vested but not yet settled and the Sogou noncontrolling shareholders’ investments in Sogou Preferred Shares and Ordinary Shares are accounted for as a noncontrolling interest classified as permanent equity in the Sohu Group’s consolidated balance sheets, as the Sohu Group has the right to reject a redemption requested by the noncontrolling interest. These treatments are based on the terms governing the investment, and on the terms of the classes of Sogou shares held, by the noncontrolling shareholders in Sogou. By virtue of these terms, Sogou’s losses have been and will be allocated in the following order: (i) net losses were allocated to holders of Sogou Class A Ordinary Shares and the holder of Sogou Class B Ordinary Shares until their basis in Sogou decreased to zero; (ii) additional net losses were allocated to holders of Sogou Series A Preferred Shares until their basis in Sogou decreased to zero; (iii) additional net losses will be allocated to the holder of Sogou Series B Preferred Shares until its basis in Sogou decreases to zero; and (iv) further net losses will be allocated between Sohu.com Inc. and noncontrolling shareholders based on their shareholding percentage in Sogou. Net income from Sogou has been, and future net income from Sogou will be, allocated in the following order: (i) net income will be allocated between Sohu.com Inc. and noncontrolling shareholders based on their shareholding percentage in Sogou until their basis in Sogou increases to zero; (ii) additional net income will be allocated to the holder of Sogou Series B Preferred Shares to bring its basis back; (iii) additional net income will be allocated to holders of Sogou Series A Preferred Shares to bring their basis back; (iv) further net income will be allocated to holders of Sogou Class A Ordinary Shares and the holder of Sogou Class B Ordinary Shares to bring their basis back; and (v) further net income will be allocated between Sohu.com Inc. and noncontrolling shareholders based on their shareholding percentage in Sogou. Noncontrolling Interest for Changyou As Sohu.com Inc. is Changyou’s controlling shareholder, Changyou’s financial results have been consolidated with those of Sohu.com Inc. for all periods presented. To reflect the economic interest in Changyou held by shareholders other than Sohu.com Inc. (the “Changyou noncontrolling shareholders”), Changyou’s net income /(loss) attributable to the Changyou noncontrolling shareholders is recorded as noncontrolling interest in the Sohu Group’s consolidated statements of comprehensive income, based on their share of the economic interest in Changyou. Changyou’s cumulative results of operations attributable to the Changyou noncontrolling shareholders, along with changes in shareholders’ equity, adjustment for share-based compensation expense in relation to those share-based awards which are unvested and vested but not yet settled and adjustment for changes in Sohu.com Inc.’s ownership in Changyou, are recorded as noncontrolling interest in the Sohu Group’s consolidated balance sheets. Segment Reporting The Sohu Group’s segments are business units that offer different services and are reviewed separately by the chief operating decision maker (the “CODM”), or the decision making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM is Sohu.com Inc.’s Chief Executive Officer. Revenue Recognition The Sohu Group recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. The recognition of revenues involves certain management judgments. The amount and timing of the revenues could be materially different for any period if management made different judgments or utilized different estimates. Barter trade transactions in which physical goods or services (other than advertising services) are received in exchange for advertising services are recorded based on the fair values of the goods and services received. For online advertising-for-online advertising barter transactions, no revenue or expense is recognized because the fair value of neither the advertising surrendered nor the advertising received is determinable. Online Advertising Revenues Online advertising revenues include revenues from brand advertising services as well as search and search-related services. The Group recognizes revenue for the amount of fees it receives from its advertisers, after deducting agent rebates and net of value-added tax (“VAT”) and related surcharges. Brand Advertising Revenues Business Model Through PCs and mobile devices, the Group provides advertisement placements to its advertisers on different Internet platforms and in different formats, which include banners, links, logos, buttons, full screen, pre-roll, mid-roll, post-roll video screens, pause video screens, loading page ads, news feed ads and in-feed video infomercial ads. Currently the brand advertising business has four main types of pricing models, consisting of the Fixed Price model, the Cost Per Impression (“CPM”) model, the E-commerce model, and the Cost Per click (“CPC”) model. Fixed Price model Under the Fixed Price model, a contract is signed to establish a fixed price for the advertising services to be provided. CPM model Under the CPM model, the unit price for each qualifying display is fixed, but there is no overall fixed price for the advertising services stated in the contract with the advertiser. A qualifying display is defined as the appearance of an advertisement, where the advertisement meets criteria specified in the contract. Advertising fees are charged to the advertisers based on the unit prices and the number of qualifying displays. E-commerce model The E-commerce model is used by Focus. Under this model, revenues are generated mainly from sales of membership cards which allow potential home buyers to purchase specified properties from real estate developers at a discount greater than the price that Focus charges for the card. Membership fees are refundable until the potential home buyer uses the discounts to purchase properties. Focus recognizes such revenues upon obtaining confirmation that the membership card has been redeemed to purchase a property. CPC model Under the CPC model, there is no overall fixed price for advertising services stated in the contract with the advertiser. The Group charges advertisers on a per-click basis when the users click on the advertisements. The unit price for each click is fixed or auction-based. Revenue Recognition For brand advertising revenue recognition, prior to entering into contracts, the Sohu Group makes a credit assessment of the advertisers. For contracts for which collectability is determined to be reasonably assured, the Sohu Group recognizes revenue when all revenue recognition criteria are met. In other cases, the Sohu Group only recognizes revenue when the cash is received and all other revenue recognition criteria are met. In accordance with ASU No. 2009-13 Search and Search-related Revenues Search and search-related services include primarily pay-for-click services, as well as online marketing services on Web directories operated by Sogou. Pay-for-click Services Pay-for-click services are services that enable advertisers’ promotional links to be displayed on Sogou search result pages and Sogou Website Alliance members’ Websites where the links are relevant to the subject and content of such Web pages. For pay-for-click services, the Sohu Group introduces Internet users to its advertisers through its auction-based pay-for-click systems and charges advertisers on a per-click basis when the users click on the displayed links. Revenue for pay-for-click services is recognized on a per-click basis when the users click on the displayed links. Online Marketing Services on Web Directories Operated by Sogou Online marketing services on Web directories operated by Sogou mainly consist of displaying advertisers’ Website links on the Web pages of Web directories. Revenue for online marketing services on Web directories operated by Sogou is normally recognized on a straight-line basis over the contract period, provided the Sohu Group’s obligations under the contract have been met and all revenue recognition criteria have been met. Both pay-for-click services and online marketing services on Web directories operated by Sogou expand distribution of advertisers’ Website links or advertisements by leveraging traffic on Sogou Website Alliance members’ Websites. The Group recognizes gross revenue for the amount of fees it receives from advertisers, as the Group has the primary responsibility for fulfillment and acceptability. Payments made to Sogou Website Alliance members are included in cost of search and search-related revenues as traffic acquisition costs. The Group pays Sogou Website Alliance members based on either revenue-sharing arrangements, under which it pays a percentage of pay-for-click revenues generated from clicks by users of their properties, or on a pre-agreed unit price. Online Game Revenues Changyou’s online game business offers to game players PC games, mobile games and Web games. All of Changyou’s games are operated under the item-based revenue model, where the basic game play functions are free of charge and players are charged for purchases of in-game virtual items, including those with a predetermined expiration time and perpetual virtual items. Revenues that Changyou generates from self-operated and licensed out online games are included in online game revenues. Self-Operated Games Changyou is the primary obligor of its self-operated games. Changyou hosts the games on its own servers and is responsible for the sale and marketing of the games as well as customer service. Accordingly, revenues are recorded gross of revenue sharing-payments to third-party developers and/or mobile app stores, but are net of business tax and discounts to game card distributors where applicable. Changyou obtains revenues from the sale of in-game virtual items. Revenues are recognized over the estimated lives of the virtual items purchased by game players or as the virtual items are consumed. If different assumptions were used in deriving the estimated lives of the virtual items, the timing of the recording of the revenues would be impacted. PC Games Proceeds from the self-operation of PC games are collected from players and third-party game card distributors through sales of Changyou’s game points on its online payment platform and prepaid game cards. Self-operated PC games are either developed in house or licensed from third-party developers. For licensed PC games, Changyou remits a pre-agreed percentage of the proceeds to the third-party developers, and keeps the balance pursuant to revenue-sharing agreements. Such revenue-sharing amounts paid to third-party developers are recorded in Changyou’s cost of revenues. Mobile Games For self-operated mobile games, Changyou sells game points to its game players via third-party mobile application stores. The mobile application stores in turn pay Changyou proceeds after deducting their share of pre-agreed revenue-sharing amounts. Self-operated mobile games are either developed in house or licensed from or jointly developed with third-party developers. For licensed and jointly developed mobile games, Changyou remits a pre-agreed percentage of the proceeds to the third-party developers, and keeps the balance pursuant to revenue-sharing agreements. Such revenue-sharing amounts paid to mobile application stores and third-party developers are recorded in Changyou’s cost of revenues. Web Games Proceeds from self-operated Web games are collected from players through the sale of game points. Licensed Out Games Changyou also authorizes third-parties to operate its online games. Licensed out games include PC games, mobile games and Web games developed in house and mobile games jointly developed with third-party developers. Changyou receives monthly revenue-based royalty payments from all the third-party licensee operators. Changyou receives additional up-front license fees from certain third-party licensee operators who are entitled to an exclusive right to operate Changyou’s games in specified geographic areas. Since Changyou is obligated to provide post-sale services, the initial license fees are recognized as revenue ratably over the license period, and the monthly revenue-based royalty payments are recognized when relevant services are delivered, provided that collectability is reasonably assured. Changyou views the third-party licensee operators as Changyou’s customers and recognizes revenues on a net basis, as Changyou does not have the primary responsibility for fulfillment and acceptability of the game services. Changyou remits to the third-party developers a pre-agreed percentage of revenues from jointly developed and licensed out mobile games, and recognizes revenues on a net basis. Others Revenues Sohu Sohu also engages in the others business, which includes the filming business, mobile-related services, sub-licensing of purchased video content to third parties, and paid subscription services. Revenues generated by Sohu from the others business are classified as others revenues in the Sohu Group’s consolidated statements of comprehensive income. Sogou Others revenues attributable to Sogou are primarily IVAS revenues derived from the operation of Web games and mobile games of third-party developers, as well as other services and products that Sogou provides to users. Changyou Others revenues attributable to Changyou are primarily generated from its platform channel business and its others business. In its platform channel business, Changyou provides IVAS through its operation of software applications for PCs and mobile devices, such as the Dolphin Browser and RaidCall. In its others business, Changyou provides clients advertising placements in slots that are shown in theatres before the screening of movies. When all the recognition criteria are met, revenues from cinema advertising are recognized based on a percentage of the advertising slots actually delivered or on a straight-line basis over the contract period. Cost of Revenues Cost of Online Advertising Revenues Cost of online advertising revenues includes cost of revenues from brand advertising services as well as cost of search and search-related services. Cost of Brand Advertising Revenues Cost of brand advertising revenues mainly consists of content and license costs, bandwidth leasing costs, salary and benefits expenses, and depreciation expenses. Cost of Search and Search-related Revenues Cost of search and search-related revenues mainly consists of traffic acquisition costs, bandwidth leasing costs, depreciation expenses and salary and benefits expenses. Traffic acquisition costs represent payments made to Sogou Website Alliance members. The Sohu Group pays Sogou Website Alliance members based either on revenue-sharing arrangements or on a pre-agreed unit price. Under the revenue-sharing arrangements, the Group pays a percentage of pay-for-click revenues generated from clicks by users of the Website Alliance members’ properties. Cost of Online Game Revenues Cost of online game revenues mainly consists of revenue-sharing payments, salary and benefits expense, bandwidth leasing costs, PRC business tax and value-added tax, which primarily arise from the revenues that AmazGame and Gamespace derive from their contractual arrangements with Gamease and Guanyou Gamespace, amortization of licensing fees, depreciation expenses, and other direct costs. Cost of Revenues for Other Services Cost of revenues for other services mainly consists of payments to theaters and film production companies for pre-film screening advertisement slots, revenue-sharing payments related to the IVAS business, revenue-sharing payments paid to China mobile network operators and payments related to the filming business, which are composed primarily of revenue-sharing paid to producers and production costs paid to film production companies. Product Development Expenses Product development expenses mainly consist of salary and benefits expenses, depreciation and amortization expenses, facilities expenses, content and license expenses and technical service fees. Product development expenses are incurred for the enhancement and maintenance of the Sohu Group’s Internet platforms as well as its products and services, including the development costs of online games prior to the establishment of technological feasibility and maintenance costs after the online games are available for marketing. Sales and Marketing Expenses Sales and marketing expenses mainly consist of advertising and promotional expenses, salary and benefits expense, travel expenses, and facility expenses. Advertising and promotional expenses generally represent the expenses of promotions to create or stimulate a positive image of the Sohu Group or a desire to subscribe for the Group’s products and services. Advertising and promotional expenses are expensed as incurred. General and Administrative Expenses General and administrative expenses mainly consist of salary and benefits expenses, professional service fees, share-based compensation expense, facility expenses, depreciation and amortization expenses, and travel expenses. Share-based Compensation Expense Sohu (excluding Fox Video Limited), Sogou, Changyou, and Fox Video Limited (“Sohu Video”) have incentive plans, and prior to June 28, 2013 7Road had an incentive plan, for the granting of share-based awards, including common stock or ordinary shares, share options, restricted shares and restricted share units, to members of the boards of directors, management and other key employees. For share-based awards for which a grant date has occurred, share-based compensation expense is recognized as costs and expenses in the consolidated statements of comprehensive income based on the fair value of the related share-based awards on their grant dates. For share-based awards for which the service inception date precedes the grant date, share-based compensation expense is recognized as costs and expenses in the consolidated statements of comprehensive income beginning on the service inception date and is re-measured on each subsequent reporting date before the grant date, based on the estimated fair value of the related share-based awards. Share-based compensation expense is charged to the shareholders’ equity or noncontrolling interest section in the consolidated balance sheets. The assumptions used in share-based compensation expense recognition represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. If factors change or different assumptions are used, the Group’s share-based compensation expense could be materially different for any period. Moreover, the estimates of fair value are not intended to predict actual future events or the value that ultimately will be realized by employees who receive equity awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Group for accounting purposes. Sohu (excluding Sohu Video), Sogou, and Changyou Share-based Awards Sohu (excluding Sohu Video) Share-based Awards In determining the fair value of share options granted by Sohu (excluding Sohu Video) as share-based awards before 2006, the Black-Scholes valuation model was applied. In determining the fair value of restricted share units granted, the public market price of the underlying shares on the grant dates was applied. Options for the purchase of 1,068,000 shares of Sohu common stock contractually granted on February 7, 2015 are subject to vesting in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and certain subjective performance targets. For purposes of ASC 718-10-25 ASC 718-10-55 Sogou Share-based Awards In determining the fair value of share options granted by Sogou as share-based awards, the income approach /discounted cash flow method with a discount for lack of marketability was applied, given that the shares underlying the awards were not publicly traded at the time of grant. Certain persons who became Sogou employees when Tencent’s Soso search-related businesses were transferred to Sogou on September 16, 2013 had been granted restricted share units under Tencent’s share award arrangements prior to the transfer of the businesses to Sogou. These Tencent restricted share units will continue to vest under the original Tencent share award arrangements provided the transferred employees continue to be employed by Sogou during the requisite service period. After the transfer of the Soso search-related businesses to Sogou, Sogou applied the guidance in ASC 505-50 Changyou Share-based Awards In determining the fair value of ordinary shares and restricted share units granted by Changyou as share-based awards in 2008, the income approach /discounted cash flow method with a discount for lack of marketability was applied, given that the shares underlying the awards were not publicly traded at the time of grant. In determining the fair value of restricted share units granted in 2009 before Changyou’s initial public offering, the fair value of the underlying shares was determined based on Changyou’s offering price for its initial public offering. In determining the fair value of restricted share units granted after Changyou’s initial public offering, the public market price of the underlying shares on the grant dates was applied. Options for the purchase of 2,400,000 Changyou ordinary shares that were converted to options from restricted share units on February 16, 2015 and options contractually granted on June 1, 2015 for the purchase of 1,998,000 Changyou ordinary shares awards are subject to vesting in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and certain subjective performance targets. For purposes of ASC 718-10-25 ASC 718-10-55 Compensation Expense Recognition For share options, restricted shares and restricted share units granted with respect to Sohu (excluding Sohu Video) shares and Changyou shares, compensation expense is recognized on an accelerated basis over the requisite service period. For share options granted with respect to Sogou shares, compensation expense is recognized on a straight-line basis over the estimated period during which the service period requirement and performance target will be met. For Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, compensation expense is recognized by Sogou on an accelerated basis over the requisite service period, and the fair value of the share-based compensation is re-measured at each reporting date until a measurement date occurs. The number of share-based awards for which the service is not expected to be rendered over the requisite period is estimated, and no compensation expense is recorded for the number of awards so estimated. Sohu Video Share-based Awards On January 4, 2012, Sohu Video, the holding entity of Sohu’s video division, adopted a 2011 Share Incentive Plan (the “Video 2011 Share Incentive Plan”) which provides for the issuance of up to 25,000,000 ordinary shares of Sohu Video (representing approximately 10% of the outstanding ordinary shares of Sohu Video on a fully-diluted basis) to management and key employees of the video division and to Sohu management. As of December 31, 2015, grants of options for the purchase of 16,368,200 ordinary shares of Sohu Video had been contractually made, of which options for the purchase of 4,972,800 ordinary shares were vested. For purposes of ASC 718-10-25 ASC 718-10-55 7Road Share-based Awards On July 10, 2012, 7Road adopted the 7Road 2012 Share Incentive Plan. On June 28, 2013, 7Road’s Board of Directors approved the cancellation of this incentive plan. 7Road concurrently offered to a total of 42 7Road employees holding an aggregate of 2,223,750 restricted share units which had been granted under this incentive plan the right to exchange their restricted share units for, at each employee’s election, in each case subject to the employee’s continued employment by 7Road, either (i) Scheme I: the right to a cash payment of up to an aggregate of $2.90 per restricted share unit exchanged, vesting and payable at the rate of 40%, 30% and 30%, respectively, on the first, second and third anniversaries of July 18, 2012, which is the date when the surrendered restricted share units were granted under the 7Road 2012 Share Incentive Plan, or (ii) Scheme II: the right to receive an annual cash bonus, over a seven-year period commencing July 1, 2013, based on the adjusted annual cumulative net income of 7Road. As of June 28, 2013, all restricted share units held by these 42 7Road employees had been included in this exchange program. In the third quarter of 2013, 7Road granted to an additional 48 7Road employees the right to receive an annual cash bonus under Scheme II with the same terms as described above. On August 17, 2015, Changyou completed the sale of 7Road’s operating company Shenzhen 7Road. Compensation expense recognized for the years ended December 31, 2013, 2014 and 2015 was $3.3 million, $0.8 million and $0.1 million, respectively, for Scheme I and $0.4 million, $0.3 million and nil, respectively, for Scheme II. As a result of the sale, there will be no additional compensation expense recognized for 7Road. Taxation Income Taxes Income taxes are accounted for using an asset and liability approach which requires the recognition of income taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Group’s financial statements or tax returns. Deferred income taxes are determined based on the differences between the accounting basis and the tax basis of assets and liabilities and are measured using the currently enacted tax rates and laws. Deferred tax assets are reduced by a valuation allowance, if based on available evidence, it is considered that it is more likely than not that some portion of or all of the deferred tax assets will not be realized. In making such determination, the Group considers factors including future reversals of existing taxable temporary differences, future profitability, and tax planning strategies. If events were to occur in the future that would allow the Group to realize more of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the deferred tax assets that would increase income for the period when those events occurred. If events were to occur in the future that would require the Group to realize less of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the valuation allowance against deferred tax assets that would decrease income for the period when those events occurred. Significant management judgment is required in determining income tax expense and deferred tax assets and liabilities. The Group’s deferred tax assets relate to net operating losses and temporary differences between accounting basis and tax basis for its China-based subsidiaries and VIEs, which are subject to corporate income tax in the PRC under the PRC Corporate Income Tax Law (the “CIT Law”). PRC Withholding Tax on Dividends The CIT Law imposes a 10% withholding income tax on dividends distributed by foreign-invested enterprises in the PRC to their immediate holding companies outside Mainland China. A lower withholding tax rate may be applied if there is a tax treaty or other arrangement between Mainland China and the jurisdiction of the foreign holding company. A holding company in Hong Kong, for example, will be subject to a 5% withholding tax rate under an arrangement between the PRC and the Hong Kong Special Administrative Region on the “Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital”, if such holding company is considered a non-PRC resident enterprise and holds at least 25% of the equity interests in the PRC foreign invested enterprise distributing the dividends, subject to approval of the PRC local tax authority. However, if the Hong Kong holding company is not considered to be the beneficial owner of such dividends under applicable PRC tax regulations, such dividend will remain subject to a withholding tax rate of 10%. PRC Value Added Tax and Business Tax Revenues from brand advertising, from the search and search-related business, from Changyou’s Web games that were not developed in-house and from licensed mobile games, as well as revenues from mobile-related services, which are recorded as others revenues, are subject to VAT. To record VAT payable, the Group adopted the net presentation method, which presents the difference between the output VAT (at a rate of |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information [Abstract] | |
Segment Information | 3. Segment Information The Sohu Group’s segments are business units that offer different services and are reviewed separately by the chief operating decision maker (the “CODM”), or the decision making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM is Sohu.com Inc.’s Chief Executive Officer. Commencing in the second quarter of 2015, the CODM did not consider the others segment to be significant enough to be separately reviewed. Therefore, in order to better reflect management’s perspective, the Group combined the brand advertising segment and the others segment, and now identifies them together as the Sohu segment. There are now three segments in the Group, consisting of the Sohu segment, the Sogou segment, and the Changyou segment. The Group has restated the presentation of its reportable segments for prior periods to conform to the current presentation. The following tables present summary information by segment (in thousands): Year Ended December 31, 2013 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 460,444 $ 216,515 $ 737,875 $ (14,560 ) $ 1,400,274 Segment cost of revenues (244,696 ) (109,024 ) (126,336 ) 581 (479,475 ) Segment gross profit 215,748 107,491 611,539 (13,979 ) 920,799 SBC (2) in cost of revenues (425 ) (49 ) (101 ) 0 (575 ) Gross profit 215,323 107,442 611,438 (13,979 ) 920,224 Operating expenses: Product development (85,066 ) (67,714 ) (119,434 ) 729 (271,485 ) Sales and marketing (196,625 ) (39,399 ) (128,756 ) 14,199 (350,581 ) General and administrative (38,567 ) (9,573 ) (56,567 ) (116 ) (104,823 ) SBC (2) in operating expenses (2,831 ) (10,261 ) (1,173 ) 4,411 (9,854 ) Total operating expenses (323,089 ) (126,947 ) (305,930 ) 19,223 (736,743 ) Operating profit /(loss) (107,766 ) (19,505 ) 305,508 5,244 183,481 Other income (3) 168,420 2,713 3,613 (162,025 ) 12,721 Net interest income 6,979 1,230 19,620 0 27,829 Exchange difference (1,001 ) 277 (5,936 ) 0 (6,660 ) Income /(loss) before income tax expense 66,632 (15,285 ) 322,805 (156,781 ) 217,371 Income tax expense (14,033 ) (6 ) (36,383 ) 0 (50,422 ) Net income /(loss) $ 52,599 $ (15,291 ) $ 286,422 $ (156,781 ) $ 166,949 Note (1): The elimination for segment revenues mainly consists of revenues from marketing services provided by the brand advertising segment (banner advertisements, etc.) to the Changyou segment. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination for other income is primarily for the portion paid to Sohu of a special dividend paid by Sogou to holders of its Series A Preferred Shares. Year Ended December 31, 2014 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 546,262 $ 386,382 $ 755,266 $ (14,833 ) $ 1,673,077 Segment cost of revenues (320,035 ) (163,426 ) (201,710 ) 1,509 (683,662 ) Segment gross profit 226,227 222,956 553,556 (13,324 ) 989,415 SBC (2) in cost of revenues (728 ) (1,092 ) (152 ) 0 (1,972 ) Gross profit 225,499 221,864 553,404 (13,324 ) 987,443 Operating expenses: Product development (93,227 ) (102,329 ) (193,044 ) 4,297 (384,303 ) Sales and marketing (220,479 ) (73,932 ) (241,202 ) 14,744 (520,869 ) General and administrative (43,640 ) (13,446 ) (104,663 ) (733 ) (162,482 ) Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions 0 0 (52,282 ) 0 (52,282 ) SBC (2) in operating expenses (7,378 ) (62,950 ) (3,962 ) 1,820 (72,470 ) Total operating expenses (364,724 ) (252,657 ) (595,153 ) 20,128 (1,192,406 ) Operating loss (139,225 ) (30,793 ) (41,749 ) 6,804 (204,963 ) Other income 8,369 2,462 4,112 (4,984 ) 9,959 Net interest income 8,565 2,773 19,639 0 30,977 Exchange difference (325 ) (149 ) (668 ) 0 (1,142 ) Loss before income tax expense (122,616 ) (25,707 ) (18,666 ) 1,820 (165,169 ) Income tax expense (3,557 ) 0 (2,493 ) 0 (6,050 ) Net loss $ (126,173 ) $ (25,707 ) $ (21,159 ) $ 1,820 $ (171,219 ) Note (1): The elimination for segment revenues mainly consists of revenues from marketing services provided by the brand advertising segment (banner advertisements, etc.) to the Changyou segment. Note (2): “SBC” stands for share-based compensation expense. Year Ended December 31, 2015 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 590,471 $ 591,803 $ 761,636 $ (6,819 ) $ 1,937,091 Segment cost of revenues (393,564 ) (247,949 ) (216,727 ) 924 (857,316 ) Segment gross profit 196,907 343,854 544,909 (5,895 ) 1,079,775 SBC (2) in cost of revenues (1,381 ) (330 ) (37 ) 0 (1,748 ) Gross profit 195,526 343,524 544,872 (5,895 ) 1,078,027 Operating expenses: Product development (94,392 ) (124,210 ) (165,130 ) 4,932 (378,800 ) Sales and marketing (203,332 ) (93,055 ) (91,334 ) 6,845 (380,876 ) General and administrative (57,014 ) (14,422 ) (71,771 ) (656 ) (143,863 ) Goodwill impairment and impairment of intangible assets acquired as part of a business acquisition 0 0 (40,324 ) 0 (40,324 ) SBC (2) in operating expenses (26,743 ) (10,049 ) (14,988 ) 85 (51,695 ) Total operating expenses (381,481 ) (241,736 ) (383,547 ) 11,206 (995,558 ) Operating profit /(loss) (185,955 ) 101,788 161,325 5,311 82,469 Other income (3) 92,455 1,142 64,961 (84,032 ) 74,526 Net interest income 2,683 5,332 15,444 0 23,459 Exchange difference 1,716 667 2,954 0 5,337 Income /(loss) before income tax expense (89,101 ) 108,929 244,684 (78,721 ) 185,791 Income tax expense (13,451 ) (9,430 ) (54,055 ) 0 (76,936 ) Net income /(loss) $ (102,552 ) $ 99,499 $ 190,629 $ (78,721 ) $ 108,855 Note (1): The elimination for segment revenues and other income mainly consists of revenues from marketing services provided among the Sohu, Sogou and Changyou segments, and Sogou’s repurchase of Sogou shares from Sohu.com (Search) Limited. Note (2): “SBC” stands for share-based compensation expense. Note (3): In the third quarter of 2015, Sogou purchased from Sohu 24.0 million Series A Preferred Shares of Sogou for $78.8 million. Sohu recognized $78.8 million in other income, which was eliminated in the Group’s consolidated statements of comprehensive income. As of December 31, 2014 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 431,272 $ 224,273 $ 220,795 $ 0 $ 876,340 Accounts receivable, net 137,183 15,341 77,969 (92 ) 230,401 Fixed assets, net 252,255 44,686 243,837 0 540,778 Total assets (1) $ 1,159,403 $ 305,975 $ 1,547,965 $ (146,334 ) $ 2,867,009 Note (1): The elimination for segment assets mainly consists of elimination of long-term investments in subsidiaries and consolidated VIEs. As of December 31, 2015 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 430,804 $ 244,484 $ 569,917 $ 0 $ 1,245,205 Accounts receivable, net 176,759 28,986 67,959 (87 ) 273,617 Fixed assets, net 223,939 70,447 214,306 0 508,692 Total assets (1) $ 1,356,263 $ 387,875 $ 1,779,506 $ (481,450 ) $ 3,042,194 Note (1): The elimination for segment assets mainly consists of elimination of intracompany loans between the Sohu segment and the Changyou segment, and elimination of long-term investments in subsidiaries and consolidated VIEs. |
Share-based Compensation Expens
Share-based Compensation Expense | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Expense [Abstract] | |
Share-based Compensation Expense | 4. Share-based Compensation Expense Sohu (excluding Fox Video Limited), Sogou, Changyou, and Fox Video Limited (“Sohu Video”) have incentive plans for the granting of share-based awards, including common stock or ordinary shares, share options, restricted shares and restricted share units, to members of the boards of directors, management and other key employees. Share-based compensation expense was recognized in costs and expenses for the years ended December 31, 2013, 2014 and 2015 as follows (in thousands): Year Ended December 31, 2013 2014 2015 Share-based compensation expense Cost of revenues $ 575 $ 1,973 $ 1,748 Product development expenses 4,638 24,982 19,344 Sales and marketing expenses 1,071 5,645 3,054 General and administrative expenses 4,145 41,843 29,297 $ 10,429 $ 74,443 $ 53,443 Share-based compensation expense was recognized for share awards of Sohu (excluding Sohu Video), Sogou, Changyou and Sohu Video as follows (in thousands): Year Ended December 31, 2013 2014 2015 Share-based compensation expense For Sohu (excluding Sohu Video) share-based awards $ 3,799 $ 4,410 $ 27,811 For Sogou share-based awards (1) 5,435 61,918 10,310 For Changyou share-based awards 1,195 4,087 15,024 For Sohu Video share-based awards 0 4,028 298 $ 10,429 $ 74,443 $ 53,443 Note (1): Sogou share-based awards also include compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of Sogou Class A Ordinary Shares that Sogou repurchased in the second quarter of 2014. There was no capitalized share-based compensation expense for the years ended December 31, 2015, 2014 and 2013. |
Advertising and Promotional Exp
Advertising and Promotional Expenses, included in Sales and Marketing Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Advertising and Promotional Expenses, included in Sales and Marketing Expenses [Abstract] | |
Advertising and Promotional Expenses, included in Sales and Marketing Expenses | 5. Advertising and Promotional Expenses, included in Sales and Marketing Expenses Advertising and promotional expenses are included in sales and marketing expenses, and generally represent the expenses of promotions to create or stimulate a positive image of the Sohu Group or a desire to subscribe for the GroupÂ’s products and services. Advertising expenses are expensed as incurred. For the years ended December 31, 2015, 2014 and 2013, advertising and promotional expenses recognized in the consolidated statements of comprehensive income were $196.9 million, $310.7 million and $193.5 million, respectively. |
Other Income _(Expense)
Other Income /(Expense) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income /(Expense) [Abstract] | |
Other Income /(Expense) | 6. Other Income /(Expense) The following table summarizes the Sohu GroupÂ’s other income /(expense) (in thousands): Year Ended December 31, 2013 2014 2015 Investment income (1) $ 4,507 $ 2,039 $ 60,264 Government grant 4,959 3,618 2,839 Charitable donations (1,543 ) (683 ) (1,192 ) Change in fair value of short-term investments 2,451 3,137 9,374 Change in fair value of China Web put option 2,160 2,304 0 Others 187 (456 ) 3,241 $ 12,721 $ 9,959 $ 74,526 Note (1): The $60.3 million in investment income in 2015 primarily included a $55.1 million disposal gain recognized by Changyou for its sale of the 7Road business and certain Changyou subsidiaries and a $13.0 million disposal gain recognized by Sohu for its sale of an equity investment, offset by an $8.9 million investment loss from the GroupÂ’s other equity investments. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | 7. Balance Sheet Components (In thousands) As of December 31, 2014 2015 Cash and cash equivalents Cash $ 293,180 $ 517,973 Cash equivalents 583,160 727,232 $876,340 $1,245,205 Accounts receivable, net Accounts receivable $ 234,469 $ 277,593 Allowance for doubtful accounts: Balance at the beginning of year (6,801 ) (4,068 ) Additional provision for bad debt (2,029 ) (3,204 ) Write-offs 3,137 857 Cash collection 1,625 2,236 Exchange difference 0 203 Balance at the end of year (4,068 ) (3,976 ) $230,401 $273,617 Prepaid and other current assets Prepaid content and license $ 58,331 $ 57,910 Due from 7Road 0 20,579 Prepaid income tax 0 13,073 Matching loan due from a related party (1) 0 12,740 Prepaid rental deposit 11,260 10,231 Prepaid cost of revenue 7,875 8,458 Deferred tax assets 4,918 4,673 Employee advances 5,619 3,844 Receivables from third party payment platforms 0 3,673 Due from a related party 1,625 3,080 Prepaid office rental and facilities expenses 2,235 2,223 Prepaid advertising and promotion fees 1,148 1,905 Interest receivable 6,689 1,058 Prepaid film production fee 3,941 0 Others 13,063 15,443 $ 116,704 $ 158,890 Prepaid non-current assets Prepaid PRC income tax for the sale of assets associated with 17173.com by Sohu to Changyou $ 8,293 $ 6,067 Others 640 187 $ 8,933 $ 6,254 Other short-term liabilities Deposit received from membership card buyers $ $ 88,990 Contract deposits from advertisers 21,367 Matching loan due to a related party (1) 13,005 Consideration payable for acquisition 5,390 Early exercise of Sogou share options for trust arrangements 4,891 4,530 Accrued liabilities to suppliers 2,470 4,110 Taxes payable for exercise or settlement of share-based awards 2,382 2,382 Government grant 4,864 1,694 Accrued Business Tax arising from the sale of assets associated with 17173.com by Sohu to Changyou 1,669 1,647 Others 9,856 10,902 $ 105,644 $ 154,017 Receipts in advance and deferred revenue Receipts in advance relating to: - brand advertising business $ 23,328 $ 20,498 - search and search-related business 60,271 65,911 - online game business 18,198 20,244 - others business 449 0 Total receipts in advance 102,246 106,653 Deferred revenue 25,494 28,732 $ 127,740 $ 135,385 Note (1): During 2015, certain subsidiaries of Changyou and certain subsidiaries of SoEasy entered into a series of loan agreements, pursuant to which the subsidiaries of Changyou are entitled to draw down HK dollar-denominated loans from the SoEasy subsidiaries and the SoEasy subsidiaries are entitled to draw down equivalent RMB-denominated loans from the subsidiaries of Changyou, to facilitate each otherÂ’s business operations. All of the loans carry a fixed rate of interest equal to the current market interest rate. As of December 31, 2015, Changyou had drawn down from SoEasy loans in an aggregate principal amount of HKD100 million (approximately $12.9 million), which is recorded in other short-term liabilities, and SoEasy had drawn down from Changyou loans in an aggregate principal amount of RMB80 million (approximately $12.3 million), which is recorded in prepaid and other current assets . For the year ended December 31, 2015, interest income that Changyou earned from the RMB-denominated loan was $0.4 million and was recorded as prepaid and other current assets, and interest expense that Changyou accrued for the HK dollar-denominated loan was $0.1 million and was recorded as other short-term liabilities. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements Fair Value of Financial Instruments The Sohu Group’s financial instruments include cash equivalents, restricted time deposits, short-term investments, accounts receivable, prepaid and other current assets, available-for-sale equity securities under long-term investments, accounts payable, accrued liabilities, receipts in advance and deferred revenue, short-term bank loans, other short-term liabilities, long-term accounts payable and long-term bank loans. U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is: Level 1 - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - include other inputs that are directly or indirectly observable in the market place. Level 3 - unobservable inputs which are supported by little or no market activity. Financial Instruments Measured at Fair Value The following table sets forth the financial instruments, measured at fair value, by level within the fair value hierarchy as of December 31, 2014 (in thousands): Fair value measurements at reporting date using Items As of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 583,160 $ 0 $ 583,160 $ 0 Restricted time deposits 426,748 0 426,748 0 Short-term investments 191,577 0 191,577 0 Available-for-sale equity securities 11,273 11,273 0 0 Total $ 1,212,758 $ 11,273 $ 1,201,485 $ 0 The following table sets forth financial instruments, measured at fair value by level within the fair value hierarchy, as of December 31, 2015 (in thousands): Fair value measurements at reporting date using Items As of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 727,232 $ 0 $ 727,232 $ 0 Restricted time deposits 363,979 0 363,979 0 Short-term investments 174,515 0 174,515 0 Available-for-sale equity securities 14,301 14,301 0 0 Total $ 1,280,027 $ 14,301 $ 1,265,726 $ 0 Cash Equivalents The Sohu Group’s cash equivalents mainly consist of time deposits and money market funds with original maturities of three months or less. The fair values of cash equivalents are determined based on the pervasive interest rates in the market. The Group classifies the valuation techniques that use the pervasive interest rates input as Level 2 of fair value measurements. Generally there are no quoted prices in active markets for identical cash equivalents at the reporting date. In order to determine the fair value, the Group must use the discounted cash flow method and observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Restricted Time Deposits Restricted time deposits are valued based on the prevailing interest rates in the market using the discounted cash flow method. The Sohu Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. Collateral related to Sogou Incentive Shares Trust Arrangements In February 2013, Sohu deposited $9.0 million in cash into restricted time deposit accounts at a bank as collateral for credit facilities provided by the bank to certain Sogou employees. The facilities were intended to fund the employees’ early exercise of Sogou share options and related PRC individual income tax. Sohu is not subject to any additional potential payments other than the restricted time deposit amounts, and believes that the fair value of its guarantee liability is immaterial. Changyou Loans from Offshore Banks, Secured by Time Deposits Commencing in 2012, Changyou drew down loans from offshore branches of certain banks for the purposes of expediting the payment of a special one-time cash dividend to its shareholders, providing working capital to support its overseas operations, and funding its acquisitions and its share repurchase program. These bank loans are secured by an equivalent or greater amount of RMB deposits by Changyou in the onshore branches of such banks. The loans from the offshore branches of the lending banks are classified as short-term and long-term bank loans based on the loans’ payment terms. As of December 31, 2015, the total amount of the bank loans was $344.5 million, all of which carried a floating rate of interest based on the London Inter-Bank Offered Rate (“LIBOR”). These loans were secured by RMB deposits in onshore branches of those banks in the total amount of $354.7 million. The deposited amounts are recognized as restricted time deposits. For the years ended December 31, 2015, 2014 and 2013, interest income from the restricted time deposits securing the loans was $12.8 million, $16.3 million and $13.0 million, respectively, and interest expense on the bank loans was $7.1 million, $6.4 million and $8.8 million, respectively. Short-term Investments In accordance with ASC 825 As of December 31, 2015, the Sohu Group’s investments in financial instruments were $174.5 million. The investment instruments were issued by commercial banks in China, and have a variable interest rate indexed to performance of underlying assets. Since these investments’ maturity dates are within one year, they are classified as short-term investments. For the years ended December 31, 2015, 2014, and 2013, the Sohu Group recorded in the consolidated statements of comprehensive income change in the fair value of short-term investments in the amount of $9.4 million, $3.1 million and $2.5 million, respectively. Available-for-Sale Equity Securities Available-for-sale equity securities are valued using the market approach based on the quoted prices in active markets at the reporting date. The Group classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. On August 12, 2014, Sohu acquired approximately 6% of the total outstanding common shares of Keyeast Co., Ltd., a Korean-listed company (“Keyeast”), for a purchase price of $15.1 million. The Sohu Group classified this investment as available-for-sale equity securities under long-term investments, and reported it at fair value. As of December 31, 2015, the fair value of the Keyeast available-for-sale equity securities held by Sohu was $14.3 million. An unrealized loss representing the change in fair value of $0.8 million in the aggregate was recorded as an addition to accumulated other comprehensive income /(loss) in the Sohu Group’s consolidated balance sheets. Other Financial Instruments The fair values of other financial instruments are estimated for disclosure purposes where the financial instruments’ carrying values approximate their fair values. Long-term Investment Long-term Investment in SoEasy In August 2014, Sohu invested $4.8 million in SoEasy Internet Finance Group Limited (“SoEasy”) and in April 2015 Sohu invested an additional $16.3 million in SoEasy. After these investments, Sohu held approximately 35% of SoEasy’s equity capital. Sohu accounted for this investment under the equity method, since Sohu can exercise significant influence but does not own a majority of SoEasy’s equity capital or control SoEasy. As of December 31, 2015, the carrying value of Sohu’s investment in SoEasy was $15.2 million. Long-term Investment in Zhihu In September 2015, Sogou paid $12.0 million in cash for approximately 3% of the equity capital of Zhihu Technology Limited (“Zhihu”), a company that engages primarily in the business of operating an online question and answer-based knowledge and information sharing platform. Sogou accounted for the investment in Zhihu using the cost method, since Sogou does not have significant influence over Zhihu. Short-term Receivables and Payables Accounts receivable and prepaid and other current assets are financial assets with carrying values that approximate fair value due to their short-term nature. Short-term accounts payable, accrued liabilities, receipts in advance and deferred revenue, short-term bank loans and other short-term liabilities are financial liabilities with carrying values that approximate fair value due to their short term nature. For short-term bank loans, the rates of interest under the agreements with the lending banks were determined based on the prevailing interest rates in the market. The Sohu Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. For other short-term receivables and payables, the Group estimated fair values using the discounted cash flow method, which is unobservable in the market. The Group classifies the valuation technique as Level 3 of fair value measurements. Long-term Payables Long-term accounts payable and long-term bank loans are financial liabilities with carrying values that approximate fair value due to any changes in fair value, after considering the discount rate, being immaterial. For long-term accounts payable and long-term bank loans, the Group estimated fair values using the discounted cash flow method, which is unobservable in the market. The Sohu Group classifies the valuation technique as Level 3 of fair value measurements. Assets Measured at Fair Value on a Nonrecurring Basis The following table sets forth assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy as of December 31, 2014 and 2015 (in thousands): Fair value measurements at reporting date using Items As of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Intangible assets, net $ 110,691 $ 0 $ 0 $ 110,691 20,168 Goodwill 303,426 0 0 303,426 33,801 $ 414,117 $ 0 $ 0 $ 414,117 53,969 Fair value measurements at reporting date using Items As of December 31, 2015 Quoted Prices (Level 1) Significant Other Significant Unobservable (Level 3) Total Intangible assets, net $ 55,415 $ 0 $ 0 $ 55,415 19,947 Goodwill 154,219 0 0 154,219 31,445 $ 209,634 $ 0 $ 0 $ 209,634 51,392 Intangible Assets Intangible assets mainly comprise video content, domain names and trademarks, operating rights for licensed games, computer software, cinema advertising slot rights, and developed technologies. See Note 10 - Intangible Assets, Net. 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 Group’s acquisitions of interests in its subsidiaries and consolidated VIEs. See Note 11 - Goodwill. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2015 | |
Fixed Assets [Abstract] | |
Fixed Assets | 9. Fixed Assets The following table summarizes the Sohu GroupÂ’s fixed assets (in thousands): As of December 31, 2014 2015 Fixed assets, net Office buildings $ 417,512 $ 393,938 Computer equipment and hardware 282,547 302,832 Leasehold and building improvements 55,792 49,703 Office furniture 11,608 10,784 Vehicles 5,093 4,930 Fixed assets, gross 772,552 762,187 Accumulated depreciation (231,774 ) (253,495 ) $ 540,778 $ 508,692 For the years ended December 31, 2015, 2014 and 2013, depreciation expenses for fixed assets were $77.4 million, $78.4 million and $55.0 million, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets, Net [Abstract] | |
Intangible Assets, Net | 10. Intangible Assets, Net The following table summarizes the Sohu Group’s intangible assets, net, as of December 31, 2014 and 2015 (in thousands): As of December 31, 2014 Items Gross Carrying Accumulated Impairment Net Carrying Video content $ 150,318 $ (115,356 ) $ (12,454 ) $ 22,508 Cinema advertising slot rights 53,239 (37,360 ) 0 15,879 Developed technologies 49,545 (21,855 ) (10,751 ) 16,939 Domain names and trademarks 39,150 (8,675 ) (9,534 ) 20,941 Operating rights for licensed games 33,464 (12,694 ) (8,917 ) 11,853 Computer software 15,051 (9,428 ) (258 ) 5,365 Others 32,198 (7,485 ) (7,507 ) 17,206 Total $ 372,965 $ (212,853 ) $ (49,421 ) $ 110,691 As of December 31, 2015 Items Gross Accumulated Impairment Net Video content $ 226,832 $ (201,405 ) $ (11,129 ) $ 14,298 Domain names and trademarks 35,003 (9,458 ) (11,747 ) 13,798 Operating rights for licensed games 26,869 (9,517 ) (9,474 ) 7,878 Developed technologies 19,352 (3,393 ) (12,334 ) 3,625 Computer software 15,934 (11,173 ) 0 4,761 Cinema advertising slot rights 12,615 (8,721 ) 0 3,894 Others 27,760 (11,174 ) (9,425 ) 7,161 Total $ 364,365 $ (254,841 ) $ (54,109 ) $ 55,415 Impairment Loss In 2015, the Group recognized $19.9 million in losses for impairment of intangible assets, primarily related to the Dolphin Browser operated by MoboTap and related license rights. In 2015, the financial performance of the Dolphin Browser was below original expectations, and Changyou’s management concluded that the Dolphin Browser was unable to provide expected synergies with Changyou’s platform channel business and accordingly performed a goodwill impairment test for the goodwill generated in the acquisition of MoboTap, and recognized an $8.9 million impairment loss for intangible assets. The impairment loss is recognized in the consolidated statements of comprehensive income under “goodwill impairment and impairment of intangibles as part of acquisition of a business.” The impaired intangible assets primarily consist of user base, technology, trademark and license rights. In 2014, the Group recognized a $20.2 million impairment loss related to Changyou’s intangible assets. The impairment loss for intangible assets was mainly from developed technologies and domain names, including a $15.3 million impairment loss related to RaidCall. The impairment loss was recognized in the consolidated statements of comprehensive income as “goodwill impairment and impairment of intangible assets acquired as part of business acquisitions.” In 2013, the Sohu Group recognized a $3.6 million impairment loss related to Changyou’s intangible assets in the consolidated statements of comprehensive income. Amortization In 2015, 2014 and 2013, amortization of intangible assets was $161.1 million, $77.7 million and $56.7 million, respectively. As of December 31, 2015, amortization expenses for future periods are estimated to be as follows: For the year ending December 31, (in thousands) 2016 $ 27,925 2017 10,171 2018 5,288 2019 2,621 2020 1,263 Thereafter 8,147 Total expected amortization expense $ 55,415 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill [Abstract] | |
Goodwill | 11. Goodwill Changes in the carrying value of goodwill by segment are as follows (in thousands): Sohu Sogou Changyou Total Balance as of December 31, 2013 Goodwill $ 58,042 $ 6,290 $ 185,452 $ 249,784 Accumulated impairment losses (35,788 ) 0 (5,201 ) (40,989 ) $ 22,254 $ 6,290 $ 180,251 $ 208,795 Transactions in 2014 Business acquisitions 15,866 0 113,040 128,906 Measurement period adjustment of goodwill for the acquisition of Soso search-related businesses from Tencent 0 42 0 42 Foreign currency translation adjustment 0 (23 ) (493 ) (516 ) Impairment loss 0 0 (33,801 ) (33,801 ) Balance as of December 31, 2014 $ 38,120 $ 6,309 $ 258,997 $ 303,426 Balance as of December 31, 2014 Goodwill $ 73,908 $ 6,309 $ 297,999 $ 378,216 Accumulated impairment losses (35,788 ) 0 (39,002 ) (74,790 ) $ 38,120 $ 6,309 $ 258,997 $ 303,426 Transactions in 2015 Goodwill associated with the acquisition of 7Road de-recognized upon the sale of the 7Road business 0 0 (109,735 ) (109,735 ) Impairment loss related to MoboTap 0 0 (29,569 ) (29,569 ) Goodwill associated with the acquisition of Doyo, transferred to held-for-sale assets and impaired 0 0 (7,352 ) (7,352 ) Foreign currency translation adjustment (928 ) (364 ) (1,259 ) (2,551 ) Balance as of December 31, 2015 $ 37,192 $ 5,945 $ 111,082 $ 154,219 Balance as of December 31, 2015 Goodwill 72,980 5,945 181,529 260,454 Accumulated impairment losses (35,788 ) 0 (70,447 ) (106,235 ) $ 37,192 $ 5,945 $ 111,082 $ 154,219 In 2015, there were two separate reporting units under the Sohu segment, consisting of brand advertising and others. There was only one reporting unit under the Sogou segment. There were five main reporting units under the Changyou segment, consisting of the Changyou online game business, the 17173.com Website, RaidCall, MoboTap and the cinema advertising business. The Sohu Group tested goodwill for impairment at the reporting unit level on October 1, 2015. The Group performed the impairment test by qualitative or quantitative method. For the Sohu segment and the Sogou segment, impairment tests were conducted by quantitatively comparing the fair values of those reporting units to their carrying amounts. Sohu and Sogou estimated the fair values by weighting the results from the income approach. The valuation approach considers a number of factors that include expected future cash flows, growth rates, and discount rates, and requires Sohu and Sogou to make certain assumptions and estimates regarding industry economic factors and future profitability of the business. For the Changyou segment, given that the financial performance of the Dolphin Browser operated by MoboTap was below original expectations, Changyou’s management concluded that the Dolphin Browser was unable to provide expected synergies with Changyou’s platform business, and performed a two-step goodwill impairment test for the goodwill generated in the acquisition of MoboTap, and accordingly recognized a $29.6 million goodwill impairment loss. Changyou also recognized a $1.9 goodwill impairment loss with respect to Beijing Doyo Internet Technology Co., Ltd. (“Doyo”) as the total consideration received by Changyou for the sale of Doyo under an agreement entered into in September 2015 was lower than the carrying value of Doyo’s net assets. The goodwill impairment losses are included in the Group’s statements of comprehensive income as “goodwill impairment and impairment of intangible assets acquired as part of business acquisitions.” The fair values of the other reporting units exceeded their carrying values, indicating that the goodwill of those reporting units was not impaired. In 2014, Changyou recognized a $33.8 million goodwill impairment loss related to RaidCall, as Changyou’s management concluded that RaidCall was unable to provide expected synergies with Changyou’s online games business. In 2013, management concluded that the fair values of all the reporting units exceeded their carrying values as a result of goodwill impairment tests, indicating that the goodwill of those reporting units was not impaired. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2015 | |
Taxation [Abstract] | |
Taxation | 12. Taxation Income Tax Expense and Effective Tax Rate Income Tax Expense Sohu.com Inc. is subject to United States (“U.S.”) income tax, and Changyou’s income that is from a U.S. source is generally subject to U.S. income tax. The majority of the subsidiaries and VIEs of the Sohu Group are based in mainland China and are subject to income taxes in the PRC. These China-based subsidiaries and VIEs conduct substantially all of the Sohu Group’s operations, and generate most of the Sohu Group’s income or losses. The components of income before income taxes are as follows (in thousands): Year ended December 31, 2013 2014 2015 Income /(loss) before income tax expense Income /(loss) from China operations $ 270,817 $ (129,349 ) $ 171,636 Income /(loss) from non China operations (53,446 ) (35,820 ) 14,155 Total income /(loss) before income tax expense $ 217,371 $ (165,169 ) $ 185,791 Income tax expense applicable to China operations Current income tax expense $ 31,444 $ 23,295 $ 55,532 Deferred tax 4,088 (20,637 ) 8,735 Subtotal income tax expense applicable to China operations 35,532 2,658 64,267 Non China income tax expense 12,798 1,864 11,291 Non China withholding tax expense 2,092 1,528 1,378 Total income tax expense $ 50,422 $ 6,050 $ 76,936 In 2015, of the $76.9 million income tax expense, $64.3 million was for PRC tax which mainly attributable to Changyou’s business and $11.3 million was for U.S. tax. The combined effects of the income tax exemption and reduction available to the Group are as follows (in thousands, except per share data): Year Ended December 31, 2013 2014 2015 Tax holiday effect $ 62,929 $ 186 $ 19,626 Basic net income per share effect 1.64 — 0.51 Effective Tax Rate The following is reconciliation between the U.S. federal statutory rate and the Group’s effective tax rate: Year Ended December 31, 2013 2014 2015 U.S. federal statutory rate: 35% 35% 35% Effect of tax holidays applicable to the subsidiaries and the consolidated VIEs (29% ) 0% (11% ) Tax differential from statutory rate applicable to the subsidiaries and the consolidated VIEs (16% ) (31% ) (13% ) Effect of withholding taxes 4% (3% ) 2% Changes in valuation allowance for deferred tax assets 28% (22% ) 31% Others 1% 17% (3% ) 23% (4% ) 41% PRC Corporate Income Tax The PRC Corporate Income Tax Law (the “CIT Law”) applies an income tax rate of 25% to all enterprises but grants preferential tax treatment to High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs can enjoy an income tax rate of 15% for three years, but need to re-apply after the end of the three-year period. If at any time during the three-year period the relevant tax bureau questions whether an enterprise continues to qualify as an HNTE, the enterprise can be subject to further tax examination and may not be able to continue to enjoy the preferential tax rate. In addition, the CIT Law and its implementing regulations provide that a “Software Enterprise” can enjoy an income tax exemption for two years beginning with its first profitable year and a 50% reduction to a rate of 12.5% for the subsequent three years. An entity that qualifies as a “Key National Software Enterprise” can enjoy a further reduced preferential income tax rate of 10% for two years, but needs to re-apply after the end of the two-year period. Principal Entities Qualified as HNTEs As of December 31, 2015, the following principal entities of the Sohu Group were qualified as HNTEs and were entitled to an income tax rate of 15%. For Sohu Business • Beijing Sohu Internet Information Service Co., Ltd. (“Sohu Internet”). Sohu Internet re-applied for HNTE qualification in June 2015 and received approval in November 2015. It is entitled to continue to enjoy the beneficial tax rate as an HNTE from 2015 to 2017. Sohu Internet will need to re-apply for HNTE qualification in 2018. • Beijing Sohu New Era Information Technology Co., Ltd. (“Sohu Era”), Beijing Sohu New Media Information Technology Co., Ltd. (“Sohu Media”) and Guangzhou Qianjun Network Technology Co., Ltd (“Guangzhou Qianjun”). Sohu Era, Sohu Media and Guangzhou Qianjun are each qualified as HNTEs for 2015 and 2016, and will need to re-apply for HNTE qualification in 2017. For Sogou Business • Beijing Sogou Information Service Co., Ltd. (“Sogou Information”). Sogou Information re-applied for HNTE qualification in July 2015 and received approval in December 2015. It is entitled to continue to enjoy the beneficial tax rate as an HNTE from 2015 to 2017. Sogou Information will need to re-apply for HNTE qualification in 2018. • Beijing Sogou Technology Development Co., Ltd. (“Sogou Technology”). Sogou Technology is qualified as an HNTE for 2015 and 2016, and will need to re-apply for HNTE qualification in 2017. For Changyou Business • Beijing AmazGame Age Internet Technology Co., Ltd. (“AmazGame”) and Beijing Gamease Age Digital Technology Co., Ltd. (“Gamease”). AmazGame and Gamease are each qualified as HNTEs for 2015 and 2016, and will need to re-apply for HNTE qualification in 2017. Entities Qualified as Software Enterprises For Sohu Business • Beijing Sohu New Momentum Information Technology Co., Ltd. (“Sohu New Momentum”). In 2015, Sohu New Momentum is in the second of two years in which it is entitled to income tax exemption as a Software Enterprise. For Changyou Business • AmazGame. In 2013 and 2014, AmazGame was qualified as a Key National Software Enterprise and enjoyed a preferential income tax rate of 10%. However, as a result of a restructuring of the approval process, the State Council recently suspended the acceptance of applications for Key National Software Enterprise status, and it is not clear when, if ever, the acceptance of applications for Key National Software Enterprise status will resume. Changyou plans to re-apply to qualify AmazGame as a Key National Software Enterprise for 2015 and 2016 if and when the State Council again authorizes the acceptance of applications. • Beijing Changyou Gamespace Software Technology Co., Ltd. (“Gamespace”). In 2015, Gamespace was in the second of the three years in which it is entitled to a 50% reduction to a rate of 12.5% as a Software Enterprise. • Shenzhen 7Road Network Technologies Co., Ltd. (“7Road Technology”). In 2015, 7Road Technology was entitled to a 50% reduction to a rate of 12.5% as a Software Enterprise. • ICE Information Technology (Shanghai) Co., Ltd (“ICE Information”). ICE Information was not subject to income tax, as it incurred losses. • Shanghai ICE Information Technology Co., Ltd. (“Shanghai ICE”) was entitled to a 50% reduction to a rate of 12.5% as a Software Enterprise from 2012 to 2014. The reduced rate no longer applied in 2015. PRC Withholding Tax on Dividends The CIT Law imposes a 10% withholding income tax for dividends distributed by foreign-invested enterprises in the PRC to their immediate holding companies outside Mainland China. A lower withholding tax rate will be applied if there is a tax treaty arrangement between Mainland China and the jurisdiction of the foreign holding company. A holding company in Hong Kong, for example, will be subject to a 5% withholding tax rate under an arrangement between the PRC and the Hong Kong Special Administrative Region on the “Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital” if such holding company is considered a non-PRC resident enterprise and holds at least 25% of the equity interests in the PRC foreign invested enterprise distributing the dividends, subject to approval of the PRC local tax authority. However, if the Hong Kong holding company is not considered to be the beneficial owner of such dividends under applicable PRC tax regulations, such dividend will remain subject to a withholding tax rate of 10%. In order to fund the distribution of a dividend to shareholders of the Sohu Group’s majority-owned subsidiary Changyou, Changyou’s Board of Directors resolved to cause one of its PRC subsidiaries to declare and distribute a cash dividend of portions of its 2012 to 2015 stand-alone earnings to its direct overseas parent company, Changyou.com (HK) Limited (“Changyou HK”). As of December 31, 2015, Changyou had accrued deferred tax liabilities in the amount of $24.9 million for PRC withholding tax. With the exception of that dividend, the Sohu Group does not intend to have any of its PRC subsidiaries distribute any undistributed profits of such subsidiaries to their direct overseas parent companies, but rather intends that such profits will be permanently reinvested by such subsidiaries for their PRC operations. PRC Value-Added Tax and Business Tax Revenues from brand advertising, from the search and search-related business, from Changyou’s Web games that were not developed in-house and from licensed mobile games, and revenues from mobile-related services, which are recorded as others revenues, are subject to VAT. To record VAT payable, the Group adopted the net presentation method, which presents the difference between the output VAT (at a rate of 6%) and available input VAT amount (at the rate applicable to the supplier). Online game revenues from the operation of PC games and self-developed mobile games are subject to a 5% PRC business tax (“Business Tax”). U.S. Corporate Income Tax Sohu.com Inc. is a Delaware corporation that is subject to U.S. corporate income tax on its taxable income at a rate of up to 35%. To the extent that Sohu.com Inc. has U.S. taxable income, which generally arises primarily from interest income of the Sohu Group, the Group accrues U.S. corporate income tax in the Group’s consolidated statements of comprehensive income and makes estimated tax payments as and when required by U.S. law. The Sohu Group does not provide for U.S. corporate income taxes or tax benefits on the undistributed earnings or losses of its international subsidiaries or consolidated VIEs because in the foreseeable future the Group does not have the intention to repatriate those undistributed earnings or losses to U.S. where it would be subject to U.S. corporate income tax. However, certain activities conducted in the PRC may give rise to U.S. corporate income tax, even if there are no distributions to Sohu.com Inc. U.S. corporate income taxes would be imposed on Sohu.com Inc. if its subsidiaries that are controlled foreign corporations generate income that is subject to the Subpart F regime of the U.S. Internal Revenue Code. Cumulative undistributed earnings were included in consolidated retained earnings on the balance sheets in the amounts of $614.1 million and $630.4 million, respectively, as of December 31, 2015 and 2014. An estimated $214.9 million and $220.6 million in U.S. income and foreign withholding taxes would be due if these earnings were remitted as dividends, after payment of all deferred taxes as of December 31, 2015 and 2014. Deferred Tax Assets and Liabilities Significant components of the Group’s deferred tax assets and liabilities consist of the following (in thousands): As of December 31, 2014 2015 Deferred tax assets: Net operating loss from operations $ 120,586 $ 145,964 Accrued bonus and commissions 12,930 21,004 Intangible assets transfer 2,261 1,156 Share-based compensation 226 4,979 Others 2,714 2,321 Total deferred tax assets 138,717 175,424 Less: Valuation allowance (110,788 ) (146,930 ) Net deferred tax assets $ 27,929 $ 28,494 Deferred tax liabilities Withholding tax for Dividend $ (22,356 ) $ (24,884 ) Deferred U.S. tax 0 (12,450 ) Intangible assets from business acquisitions (3,472 ) (1,465 ) Others (3,945 ) (3,616 ) Total deferred tax liabilities $ (29,773 ) $ (42,415 ) As of December 31, 2015, the Group had net operating losses from PRC entities of approximately $484.1 million available to offset against future net profit for income tax purposes. The Group anticipates that it is more likely than not that these net operating losses (except for the net operating losses generated by Changyou’s VIEs) may not be utilized based on its estimate of the operation performance of these PRC entities; therefore, $137.4 million in deferred tax assets generated from net operating losses were offset by a valuation allowance. In 2015, $0.9 million of the PRC net operating loss generated from previous years expired. The remaining PRC net operating loss will expire successively commencing in 2015. Uncertain Tax Positions The Sohu Group did not have any unrecognized uncertain tax positions for the year ended December 31, 2015. The Group did not have any penalties or significant interest associated with tax positions for the year ended December 31, 2015. The following table summarizes the Group’s recognized uncertain tax positions from January 1, 2013 to December 31, 2015 (in thousands): As of December 31, 2013 2014 2015 Beginning balance $ 3,096 $ 24,369 $ 24,515 Increases /(decrease) related to prior year tax positions (154 ) 0 0 Increases related to current year tax positions 21,427 146 14,729 Ending balance $ 24,369 $ 24,515 $ 39,244 In 2015, the Sohu Group recognized tax payable in the amount of $14.6 million as management determined that certain business transactions that took place during the year may result in additional tax obligations under relevant tax rules. In 2013, the Sohu Group recognized a tax payable amount of $21.4 million for an uncertain tax position arising from certain equity transactions that may be considered by PRC tax authorities to have resulted in taxable income. The $3.1 million balance brought forward from previous years was related to an uncertain tax position generated in 2009. The Group does not anticipate that the uncertain tax positions will significantly increase or decrease within twelve months of December 31, 2015. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Contractual Obligations The following table sets forth the GroupÂ’s contractual obligations as of December 31, 2015 (in thousands): As of December 31, 2016 2017 2018 2019 2020 Thereafter Total Payments Purchase of content and services-video 96,730 18,347 15,383 0 0 0 130,460 Purchase of cinema advertisement slot rights 23,745 26,868 10,262 1,010 0 0 61,885 Purchase of bandwidth 40,622 4,385 2,351 102 0 0 47,460 Operating lease obligations (1) 20,472 11,432 4,392 917 0 0 37,213 Expenditures for operating rights of licensed games with technological feasibility 5,818 20,350 0 0 0 0 26,168 Purchase of content and services-others 13,089 2,081 23 0 0 0 15,193 Fees for rights to operate licensed games in development 3,038 150 0 0 0 0 3,188 Expenditures for rights to titles and characters of games in development 1,623 0 0 0 0 0 1,623 Others 8,373 374 56 1 0 0 8,804 Total payments required 213,510 83,987 32,467 2,030 0 0 331,994 Note (1): For the years ended December 31, 2015, 2014 and 2013, rental expense included in the operating lease was approximately $27.9 million, $34.6 million, and $29.5 million, respectively. Litigation The Sohu Group is a party to various litigation matters which it considers routine and incidental to its business. Management does not expect the results of any of these actions to have a material adverse effect on the GroupÂ’s business, results of operations, financial condition and cash flows. The Group was not involved in any significant litigation during 2015. PRC Law and Regulations The Chinese market in which the Sohu Group operates poses certain macro-economic and regulatory risks and uncertainties. These uncertainties extend to the ability to operate an Internet business and to conduct brand advertising, search and search-related, online game, and others services in the PRC. Though the PRC has, since 1978, implemented a wide range of market-oriented economic reforms, continued reforms and progress towards a full market-oriented economy are uncertain. In addition, the telecommunication, information, and media industries remain highly regulated. Restrictions are currently in place and are unclear with respect to which segments of these industries foreign-owned entities, like the Sohu Group, may operate. The Chinese government may issue from time to time new laws or new interpretations of existing laws to regulate areas such as telecommunication, information and media. The Sohu GroupÂ’s legal structure and scope of operations in China could be subject to restrictions, which could result in limits on its ability to conduct business in the PRC. Certain risks related to PRC law that could affect the Sohu GroupÂ’s VIE structure are discussed in Note 15 - VIEs. Regulatory risks also encompass interpretation by PRC tax authorities of current tax law, including the applicability of certain preferential tax treatments. The Sohu GroupÂ’s sales, purchase and expense transactions are generally denominated in RMB and a significant portion of its assets and liabilities are denominated in RMB. The RMB is not freely convertible into foreign currencies. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions. Remittances in currencies other than RMB by its subsidiaries in China may require certain supporting documentation in order to effect the remittance. |
Contingent Consideration
Contingent Consideration | 12 Months Ended |
Dec. 31, 2015 | |
Contingent Consideration [Abstract] | |
Contingent Consideration | 14. Contingent Consideration Changyou’s acquisition of Beijing Doyo Internet Technology Co., Ltd. (“Doyo”) included a contingent consideration arrangement that requires additional consideration to be paid by Changyou based on the financial performance of Doyo for the fiscal years 2013 through 2015. The fair value of the contingent consideration was recognized on the acquisition date using the income approach/ discounted cash flow method with a scenario analysis applied. There were no indemnification assets involved. In March 2015, as Doyo’s performance had exceeded the relevant performance milestone, Changyou re-classified such contingent consideration to other short-term liabilities in the amount of $6.0 million in the consolidated balance sheet. In September 2015, Changyou entered into an agreement to sell all of the equity interests of Doyo. The aggregate consideration under the agreement includes cash consideration of approximately $2.9 million, and forgiveness, upon the completion of the sale, of the $6.0 million contingent consideration payable. The transaction was completed on October 27, 2015 and there was no further gain or loss recognized in the Group’s consolidated statements of comprehensive income. |
VIEs
VIEs | 12 Months Ended |
Dec. 31, 2015 | |
VIEs [Abstract] | |
VIEs | 15. VIEs Background PRC laws and regulations prohibit or restrict foreign ownership of companies that operate Internet information and content, Internet access, online games, mobile, value added telecommunications and certain other businesses in which the Sohu Group is engaged or could be deemed to be engaged. Consequently, the Sohu Group conducts certain of its operations and businesses in the PRC through its VIEs. The Sohu Group consolidates in its consolidated financial statements all of the VIEs of which the Group is the primary beneficiary. VIEs Consolidated within the Sohu Group The Sohu Group adopted the guidance of accounting for VIEs, which requires VIEs to be consolidated by the primary beneficiary of the entity. Management made evaluations of the relationships between the Sohu Group and its VIEs and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluation, management also took into account the fact that, as a result of contractual arrangements with its consolidated VIEs, the Sohu Group controls the shareholders’ voting interests in those VIEs. As a result of such evaluation, the management concluded that the Sohu Group is the primary beneficiary of the VIEs which the Group consolidates. All of the consolidated VIEs are incorporated and operated in the PRC, and the Group’s principal VIEs are directly or indirectly owned by Dr. Charles Zhang, the Sohu Group’s Chairman and Chief Executive Officer, or other executive officers and employees of the Sohu Group identified below. Capital for the consolidated VIEs was funded by the Sohu Group through loans provided to Dr. Charles Zhang and other executive officers and employees, and was initially recorded as loans to related parties. These loans are eliminated for accounting purposes against the capital of the VIEs upon consolidation. Under contractual agreements with the Sohu Group, Dr. Charles Zhang and those other executive officers and employees of the Sohu Group who are shareholders of the consolidated VIEs are required to transfer their ownership in these entities to the Group, if permitted by PRC laws and regulations, or, if not so permitted, to designees of the Group at any time as requested by the Group to repay the loans outstanding. All voting rights of the consolidated VIEs are assigned to the Sohu Group, and the Group has the right to designate all directors and senior management personnel of the consolidated VIEs, and also has the obligation to absorb losses of the consolidated VIEs. Dr. Charles Zhang and those other executive officers and employees of the Sohu Group who are shareholders of the consolidated VIEs have pledged their shares in the consolidated VIEs as collateral for the loans. As of December 31, 2015, the aggregate amount of these loans was $9.3 million. Under its contractual arrangements with the consolidated VIEs, the Sohu Group has the power to direct activities of the VIEs, and can have assets transferred freely out of the VIEs without any restrictions. Therefore, the Group considers that there is no asset of a consolidated VIE that can be used only to settle obligations of the VIEs, except for registered capital and PRC statutory reserves of the VIEs. As of December 31, 2015, the registered capital and PRC statutory reserves of the consolidated VIEs totaled $79.6 million. As all of the consolidated VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the consolidated VIEs do not have recourse to the general credit of the Sohu Group for any of the liabilities of the consolidated VIEs. Currently there is no contractual arrangement that could require the Sohu Group to provide additional financial support to the consolidated VIEs. As the Sohu Group is conducting certain business in the PRC mainly through the consolidated VIEs, the Group may provide such support on a discretionary basis in the future, which could expose the Group to a loss. The Sohu Group classified the consolidated VIEs within the Sohu Group as principal VIEs or immaterial VIEs based on certain criteria, such as the VIEs’ total assets or revenues. The following is a summary of the principal VIEs within the Sohu Group: Basic Information for Principal VIEs For Sohu Business High Century Beijing Century High Tech Investment Co., Ltd. (“High Century”) was incorporated in 2001. As of December 31, 2015, the registered capital of High Century was $4.6 million and Dr. Charles Zhang and Wei Li held 80% and 20% interests, respectively, in this entity. Sohu Internet Sohu Internet was incorporated in 2003. In the fourth quarter of 2015, Heng Da Yi Tong transferred its 25% equity interest in Sohu Internet to High Century. As of December 31, 2015, the registered capital of Sohu Internet was $1.6 million and High Century held a 100% interest in this entity. Donglin Beijing Sohu Donglin Advertising Co., Ltd. (“Donglin”) was incorporated in 2010. In the second quarter of 2015, High Century transferred its 50% equity interest in Donglin to Sohu Internet. As of December 31, 2015, the registered capital of Donglin was $1.5 million and Sohu Internet held a 100% interest in this entity. Heng Da Yi Tong Beijing Heng Da Yi Tong Information Technology Co., Ltd. (“Heng Da Yi Tong ”) was incorporated in 2002. As of December 31, 2015, the registered capital of Heng Da Yi Tong was $1.2 million and Dr. Charles Zhang and Wei Li held 80% and 20% interests, respectively, in this entity. Focus Interactive Beijing Focus Interactive Information Service Co., Ltd. (“Focus Interactive”) was incorporated in July 2014. In the second quarter of 2015, High Century transferred its 100% equity interest in Focus Interactive to Heng Da Yi Tong. As of December 31, 2015, the registered capital of Focus Interactive was $1.6 million and Heng Da Yi Tong held 100% of the equity interests in this entity. Pilot New Era Beijing Pilot New Era Advertising Co., Ltd. (“Pilot New Era”) was incorporated in 2010. In the third quarter of 2015, High Century and Sohu Internet, who each held a 50% equity interest in Pilot New Era, transferred all of their equity interests in Pilot New Era to Focus Interactive. As of December 31, 2015, the registered capital of Pilot New Era was $0.7 million and Focus Interactive held a 100% interest in this entity. Tianjin Jinhu Tianjin Jinhu Culture Development Co., Ltd. (“Tianjin Jinhu”) was incorporated in 2011. As of December 31, 2015, the registered capital of Tianjin Jinhu was $0.5 million and Ye Deng and Xuemei Zhang each held a 50% interest in this entity. Guangzhou Qianjun Guangzhou Qianjun was incorporated in October 2014. As of December 31, 2015, the registered capital of Guangzhou Qianjun was $3.3 million and Tianjin Jinhu held a 100% interest in this entity. For Sogou Business Sogou Information Sogou Information was incorporated in 2005. As of December 31, 2015, the registered capital of Sogou Information was $2.5 million and Xiaochuan Wang, Sogou’s Chief Executive Officer, High Century and Tencent held 10%, 45% and 45% interests, respectively, in this entity. For Changyou Business Gamease Gamease was incorporated in 2007. In the second quarter of 2015, Changyou completed the transfer of the equity interests in Gamease held by Tao Wang, the former Chief Executive Officer of Changyou, and Dewen Chen, the current Co-Chief Executive Officer of Changyou, to High Century. As of December 31, 2015, the registered capital of Gamease was $1.3 million and High Century held a 100% interest in this entity. Guanyou Gamespace Beijing Guanyou Gamespace Digital Technology Co., Ltd. (“Guanyou Gamespace”) was incorporated in 2010. In July 2015, Tao Wang and Dewen Chen transferred their equity interests in Guanyou Gamespace to Gamease, and in the same month Gamease transferred its equity interests in Guanyou Gamespace to Beijing Changyou Star Digital Technology Co., Ltd. (“Changyou Star”), of which 50% of the equity interests are held by Dewen Chen and 50% are held by Jie Liu, a Changyou employee. As of December 31, 2015, the registered capital of Guanyou Gamespace was $1.5 million and Changyou Star held a 100% interest in this entity. Shanghai ICE Shanghai ICE Information Technology Co., Ltd. (“Shanghai ICE”) was acquired by Changyou in 2010. In the fourth quarter of 2015, Runa Pi and Rong Qi, who each held a 50% equity interest in Shanghai ICE, transferred all of their equity interests in Shanghai ICE to Gamease. As of December 31, 2015, the registered capital of Shanghai ICE was $1.2 million and Gamease held a 100% interest in this entity. Wuhan Baina Information Baina (Wuhan) Information Technology Co., Ltd. (“Wuhan Baina Information”) was acquired by Gamease in July 2014. In the fourth quarter of 2015, Gamease transferred its 60% equity interest in Wuhan Baina Information to Changyou Star. As of December 31, 2015, the registered capital of Wuhan Baina Information was $3.0 million and Changyou Star and Yongzhi Yang, the chief executive officer of MoboTap, held 60% and 40% interests, respectively, in this entity. Financial Information The following financial information of the Sohu Group’s consolidated VIEs (including subsidiaries of VIEs) is included in the accompanying consolidated financial statements (in thousands): As of December 31, 2014 2015 ASSETS: Cash and cash equivalents $ 39,534 $ 131,270 Restricted time deposit 294 0 Accounts receivable, net 129,881 135,925 Prepaid and other current assets 23,827 101,951 Intercompany receivables due from the Company’s subsidiaries 176,902 140,396 Total current assets 370,438 509,542 Fixed assets, net 12,597 7,362 Goodwill 154,774 36,351 Long-term investments, net 7,348 15,960 Intangible assets, net 39,726 18,266 Other non-current assets 71,767 12,057 Total assets $ 656,650 $ 599,538 LIABILITIES: Accounts payable $ 3,495 $ 23,757 Accrued and other short-term liabilities 78,051 79,012 Receipts in advance and deferred revenue 53,641 55,319 Other current liabilities 53,564 141,247 Intercompany payables due to the Company’s subsidiaries 259,009 175,178 Total current liabilities 447,760 474,513 Other long-term liabilities 25,262 24,575 Total liabilities $ 473,022 $ 499,088 As of December 31, 2013 2014 2015 Net revenue $ 1,028,281 $ 1,063,655 $ 1,181,354 Net loss $ (32,919 ) $ (90,840 ) $ (78,722 ) For the table below, consolidated VIEs (including subsidiaries of VIEs) under the Sohu segment and the Sogou segment are classified as Sohu’s VIEs, and consolidated VIEs (including subsidiaries of VIEs) under the Changyou segment are classified as Changyou’s VIEs. Cash flows of Sohu’s VIEs Year ended December 31, 2013 2014 2015 Net cash provided by /(used in) operating activities $ (715 ) $ 29,344 $ 113,042 Net cash used in investing activities (926 ) (27,306 ) (16,579 ) Net cash provided by financing activities $ 1,476 $ 18,535 $ 2,855 Cash flows of Changyou’s VIEs Year ended December 31, 2013 2014 2015 Net cash provided by /(used in) operating activities $ 102,086 $ 39,827 $ (74,415 ) Net cash provided by /(used in) investing activities (53,925 ) (131,788 ) 71,687 Net cash used in financing activities $ 0 $ (793 ) $ 0 Summary of Significant Agreements Currently in Effect Agreements Between Consolidated VIEs and Nominee Shareholders Loan and share pledge agreement Loan and share pledge agreement Loan and share pledge agreements Exclusive equity interest purchase right agreements Business operation agreement Powers of Attorney Loan agreements and equity pledge agreements Equity interest purchase right agreements Business operation agreement Powers of Attorney Loan agreements and equity pledge agreements Equity interest purchase right agreements Powers of attorney Business operation agreements Share pledge agreement Call option agreement Business Operation Agreement Business Arrangements Between Subsidiaries and Consolidated VIEs Exclusive technology consulting and service agreement Business cooperation agreement Exclusive technology consulting and service agreement Exclusive technology consulting and service agreement Technology support and utilization agreements Services and maintenance agreements Exclusive Services agreement Certain of the contractual arrangements described above between the VIEs and the related wholly-owned subsidiaries of the Sohu Group are silent regarding renewals. However, because the VIEs are controlled by the Sohu Group through powers of attorney granted to the Sohu Group by the shareholders of the VIEs, the contractual arrangements can be, and are expected to be, renewed at the subsidiaries’ election. VIE-Related Risks It is possible that the Sohu Group’s operation of certain of its operations and businesses through VIEs could be found by PRC authorities to be in violation of PRC law and regulations prohibiting or restricting foreign ownership of companies that engage in such operations and businesses. While the Sohu Group’s management considers the possibility of such a finding by PRC regulatory authorities under current law and regulations to be remote, on January 19, 2015, the Ministry of Commerce of the PRC, or (the “MOFCOM”) released on its Website for public comment a proposed PRC law (the “Draft FIE Law”) that appears to include VIEs within the scope of entities that could be considered to be foreign invested enterprises (or “FIEs”) that would be subject to restrictions under existing PRC law on foreign investment in certain categories of industry. Specifically, the Draft FIE Law introduces the concept of “actual control” for determining whether an entity is considered to be an FIE. In addition to control through direct or indirect ownership or equity, the Draft FIE Law includes control through contractual arrangements within the definition of “actual control.” If the Draft FIE Law is passed by the People’s Congress of the PRC and goes into effect in its current form, these provisions regarding control through contractual arrangements could be construed to reach the Sohu Group’s VIE arrangements, and as a result the Sohu Group’s VIEs could become explicitly subject to the current restrictions on foreign investment in certain categories of industry. The Draft FIE Law includes provisions that would exempt from the definition of foreign invested enterprises entities where the ultimate controlling shareholders are either entities organized under PRC law or individuals who are PRC citizens. The Draft FIE Law is silent as to what type of enforcement action might be taken against existing VIEs that operate in restricted or prohibited industries and are not controlled by entities organized under PRC law or individuals who are PRC citizens. If a finding were made by PRC authorities, under existing law and regulations or under the Draft FIE Law if it becomes effective, that the Sohu Group’s operation of certain of its operations and businesses through VIEs is prohibited, regulatory authorities with jurisdiction over the licensing and operation of such operations and businesses would have broad discretion in dealing with such a violation, including levying fines, confiscating the Sohu Group’s income, revoking the business or operating licenses of the affected businesses, requiring the Sohu Group to restructure its ownership structure or operations, or requiring the Sohu Group to discontinue all or any portion of its operations. Any of these actions could cause significant disruption to the Sohu Group’s business operations, and have a severe adverse impact on the Sohu Group’s cash flows, financial position and operating performance. In addition, it is possible that the contracts among the Sohu Group, the Sohu Group’s VIEs and shareholders of its VIEs would not be enforceable in China if PRC government authorities or courts were to find that such contracts contravene PRC law and regulations or are otherwise not enforceable for public policy reasons. In the event that the Sohu Group was unable to enforce these contractual arrangements, the Sohu Group would not be able to exert effective control over the affected VIEs. Consequently, such VIE’s results of operations, assets and liabilities would not be included in the Sohu Group’s consolidated financial statements. If such were the case, the Sohu Group’s cash flows, financial position and operating performance would be severely adversely affected. The Sohu Group’s contractual arrangements with respect to its consolidated VIEs are in place. The Sohu Group’s management believes that such contracts are enforceable, and considers the possibility remote that PRC regulatory authorities with jurisdiction over the Sohu Group’s operations and contractual relationships would find the contracts to be unenforceable. The Sohu Group’s operations and businesses rely on the operations and businesses of its VIEs, which hold certain recognized and unrecognized revenue-producing assets. The recognized revenue-producing assets include goodwill and intangible assets acquired through business acquisitions. Goodwill primarily represents the expected synergies from combining an acquired business with the Sohu Group. Intangible assets acquired through business acquisitions mainly consist of customer relationships, non-compete agreements, user bases, copyrights, trademarks and developed technologies. Unrecognized revenue-producing assets mainly consist of licenses and intellectual property. Licenses include operations licenses, such as Internet information service licenses and licenses for providing content. Intellectual property developed by the Sohu Group mainly consists of patents, copyrights, trademarks, and domain names. The Sohu Group’s operations and businesses may be adversely impacted if the Sohu Group loses the ability to use and enjoy assets held by these VIEs. |
Sohu.com Inc. Shareholders' Equ
Sohu.com Inc. Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Sohu.com Inc. Shareholders' Equity [Abstract] | |
Sohu.com Inc. Shareholders' Equity | 16. Sohu.com Inc. Shareholders’ Equity Summary of Sohu.com Inc.’s outstanding shares (in thousands): Number of Outstanding Shares 2013 2014 2015 Common stock: Balance, beginning of year 38,089 38,326 38,507 Issuance of common stock 237 181 146 Balance, end of year 38,326 38,507 38,653 Takeover Defense Sohu intends to adopt appropriate defensive measures in the future on a case by case basis as and to the extent that Sohu’s Board of Directors determines that such measures are necessary or advisable to protect Sohu stockholder value in the face of any coercive takeover threats or to prevent an acquirer from gaining control of Sohu without offering fair and adequate price and terms. Treasury Stock Treasury stock consists of shares repurchased by Sohu.com Inc. that are no longer outstanding and are held by Sohu.com Inc. Treasury stock is accounted for under the cost method. For the years ended December 31, 2015 and 2014, the Company did not repurchase any shares of its common stock. Stock Incentive Plans Sohu (excluding Sohu Video), Sogou, Changyou, and Sohu Video have incentive plans, and prior to June 28, 2013 7Road had an incentive plan, for the granting of share-based awards, including common stock or ordinary shares, share options, restricted shares and restricted share units, to their directors, management and other key employees. 1) Sohu.com Inc. Share-based Awards Sohu’s 2000 Stock Incentive Plan Sohu’s 2000 Stock Incentive Plan (the “Sohu 2000 Stock Incentive Plan”) provided for the issuance of up to 9,500,000 shares of common stock, including those issued pursuant to the exercise of share options and upon vesting and settlement of restricted share units. Most of these awards vest over a period of four years. The maximum term of any issued stock right under the Sohu 2000 Stock Incentive Plan is ten years from the grant date. The Sohu 2000 Stock Incentive Plan expired on January 24, 2010. As of the expiration date, 9,128,724 shares of common stock had been issued or were subject to issuance upon the vesting and exercise of share options or the vesting and settlement of restricted share units granted under the plan. A new plan (the “Sohu 2010 Stock Incentive Plan”) was adopted by Sohu’s shareholders on July 2, 2010. For the years ended December 31, 2015, 2014 and 2013, total share-based compensation expense recognized for awards under the Sohu 2000 Stock Incentive Plan was nil, $1.4 million and $2.2 million, respectively. i) Summary of share option activity A summary of share option activity under the Sohu 2000 Stock Incentive Plan as of and for the year ended December 31, 2015 is presented below: Options Number Weighted Weighted Aggregate Outstanding at January 1, 2015 110 $ 19.20 0.41 $ 3,737 Exercised (110 ) 19.20 Forfeited or expired 0 Outstanding at December 31, 2015 0 0 0 0 Vested at December 31, 2015 0 0 0 0 Exercisable at December 31, 2015 0 0 0 0 Note (1): The total intrinsic value of share options exercised for the year ended December 31, 2015 was $4.5 million. No options have been granted under Sohu’s 2000 Stock Incentive Plan since 2006. For the years ended December 31, 2015, 2014 and 2013, no share-based compensation expense was recognized for share options because the requisite service periods for share options had ended by the end of 2009. For the years ended December 31, 2015, 2014 and 2013, total cash received from the exercise of share options amounted to $2.1 million, $0.6 million and $1.9 million, respectively. ii) Summary of restricted share unit activity In 2015, there was no share-based compensation expense recognized for the restricted shares units under the Sohu 2000 Stock Incentive Plan, as these awards were fully vested in the first quarter of 2014. For the years ended December 31, 2014 and 2013, total share-based compensation expense recognized for restricted share units was $1.4 million and $2.2 million, respectively. The total fair value on their respective vesting dates of restricted share units vested during the years ended December 31, 2014 and 2013 was $9.3 million and $6.2 million, respectively. Sohu’s 2010 Stock Incentive Plan On July 2, 2010, the Company’s shareholders adopted the Sohu 2010 Stock Incentive Plan, which provides for the issuance of up to 1,500,000 shares of common stock, including shares issued pursuant to the vesting and settlement of restricted share units and pursuant to the exercise of share options. The maximum term of any stock right granted under the Sohu 2010 Stock Incentive Plan is ten years from the grant date. The Sohu 2010 Stock Incentive Plan will expire on July 1, 2020. As of December 31, 2015, 351,594 shares were available for grant under the Sohu 2010 Stock Incentive Plan. i) Summary of share option activity On February 7, 2015, the Company’s Board of Directors approved contractual grants of options for the purchase of an aggregate of 1,068,000 shares of common stock to the Company’s management and key employees with nominal exercise prices of $0.001. These awards are expected to vest and become exercisable in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and certain subjective performance targets. Because the grant date had not been established as of December 31, 2015, compensation expense was accrued beginning on the service inception date and will be re-measured based on the then-current fair value of the awards on each subsequent reporting date until the grant date is established. To determine the fair value of these share options, the public market price of the underlying shares at each reporting date was used and a binomial valuation model was applied. For the year ended December 31, 2015, total share-based compensation expense recognized for these share options was $25.6 million. ii) Summary of restricted share unit activity A summary of restricted share unit activity under the Sohu 2010 Stock Incentive Plan as of and for the year ended December 31, 2015 is presented below: Restricted Share Units Number of (in thousands) Weighted-Average Grant-Date Unvested at January 1, 2015 67 $ 78.16 Granted 17 53.71 Vested (31 ) 69.12 Forfeited (21 ) 84.15 Unvested at December 31, 2015 32 70.24 Expected to vest thereafter 23 70.24 For the years ended December 31, 2015, 2014 and 2013, total share-based compensation expense recognized for restricted share units was $2.2 million, $3.0 million and $1.6 million, respectively. As of December 31, 2015, there was $1.2 million of unrecognized compensation expense related to unvested restricted share units. The expense is expected to be recognized over a weighted average period of 0.82 years. The total fair value on their respective vesting dates of restricted share units vested during the years ended December 31, 2015, 2014 and 2013 was $1.6 million, $1.2 million and $1.0 million, respectively. 2) Sogou Inc. Share-based Awards Sogou 2010 Share Incentive Plan Sogou adopted a share incentive plan on October 20, 2010. The number of Sogou ordinary shares issuable under the plan was 41,500,000 after an amendment that was effective August 22, 2014 (as amended, the “Sogou 2010 Share Incentive Plan”). Awards of share rights may be granted under the Sogou 2010 Share Incentive Plan to management and employees of Sogou and of any present or future parents or subsidiaries or variable interest entities of Sogou. The maximum term of any share right granted under the Sogou 2010 Share Incentive Plan is ten years from the grant date. The Sogou 2010 Share Incentive Plan will expire on October 19, 2020. As of December 31, 2015, Sogou had granted options for the purchase of 32,913,825 ordinary shares under the 2010 Sogou Share Incentive Plan. Of the granted options for the purchase of 32,913,825 shares, options for the purchase of 24,603,825 shares vest and become exercisable in four equal installments, with each installment vesting upon a service period requirement for management and key employees being met, as well as Sogou’s achievement of performance targets for the corresponding period. The performance target for each installment is set at the beginning of each vesting period. Accordingly, for purposes of recognition of share-based compensation expense, each installment is considered to be granted as of that date. As of December 31, 2015, performance targets had been set for options for the purchase of 23,017,447 shares, subject to vesting upon service period requirements for management and key employees being met and Sogou’s achievement of performance targets and, accordingly, such options were considered granted for purposes of recognition of share-based compensation expense. As of December 31, 2015, options for the purchase of 22,659,309 shares had become vested and exercisable because both the service period and the performance requirements had been met, and of such vested options, options for the purchase of 19,118,430 shares had been exercised. Of the granted share options, options for the purchase of 8,310,000 shares vest and become exercisable in four or five equal installments, with (i) the first installment vesting upon Sogou’s completion of an IPO of its ordinary shares (“Sogou’s IPO”) and the expiration of all underwriters’ lockup periods applicable to Sogou’s IPO, and (ii) each of the three or four subsequent installments vesting on the first, second, third and, if applicable, fourth anniversary dates, respectively, of the closing of Sogou’s IPO. The completion of an IPO is considered to be a performance condition of the awards. An IPO is not considered to be probable until it is completed. Under ASC 718 On June 15, 2013, Sogou granted options for the purchase of 3,960,000 ordinary shares that would have vested and become exercisable in four equal installments, with (i) the first installment vesting upon the first anniversary of the occurrence of either (each, an “Event”): (a) completion of Sogou’s IPO or (b) the consolidation of Sogou with or the acquisition of Sogou by another person or entity in a sale of all or substantially all of Sogou’s assets or shares, and (ii) each of the three subsequent installments vesting on the second, third and fourth anniversaries, respectively, of the occurrence of an Event. However, if there was no Event by June 15, 2015, all installments of the options would cease to vest and expire. As there had not been an Event as of June 15, 2015, all of the options ceased to vest and expired. A summary of share option activity under the Sogou 2010 Stock Incentive Plan as of and for the year ended December 31, 2015 is presented below: Options Number Of Weighted Weighted Outstanding at January 1, 2015 19,117 $ 0.236 Granted 1,509 0.001 Exercised (3,826 ) 0.001 Forfeited or expired (4,591 ) 0.001 Outstanding at December 31, 2015 12,209 0.369 7.06 Vested at December 31, 2015 and expected to vest thereafter 3,621 Exercisable at December 31, 2015 3,541 For the years ended December 31, 2015, 2014 and 2013, total share-based compensation expense recognized for share options under the Sogou 2010 Share Incentive Plan was $7.3 million, $31.4 million and $3.1 million, respectively. As of December 31, 2015, there was $0.2 million of unrecognized compensation expense related to the unvested share options. The expense is expected to be recognized over a weighted average period of 0.85 years. The fair value of the ordinary shares of Sogou was assessed using the income approach /discounted cash flow method, with a discount for lack of marketability, given that the shares underlying the award were not publicly traded at the time of grant, and was determined with the assistance of a qualified professional appraiser using management’s estimates and assumptions. This assessment required complex and subjective judgments regarding Sogou’s projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants were made. The fair value of the options granted to Sogou management and key employees was estimated on the date of grant using the Binomial option—pricing model (the “BP Model”) with the following assumptions used: Granted to Employees 2013 2014 2015 Average risk-free interest rate 2.10%~2.87% 2.62%~3.05% 2.48%~2.77% Exercise multiple 2~3 2~3 2~3 Expected forfeiture rate (post-vesting) 1.3%~6.0% 0%~12% 1%~12% Weighted average expected option life 9 7 8 Volatility rate 47%~49% 49%~54% 47%~51% Dividend yield 0% 0% 0% Fair value 0.67 5.85~6.35 3.58 Sogou estimated the risk-free rate based on the market yields of U.S. Treasury securities with an estimated country-risk differential as of the valuation date. An exercise multiple was estimated as the ratio of the fair value of the shares over the exercise price as of the time the option is exercised, based on consideration of research studies regarding exercise patterns based on historical statistical data. In Sogou’s valuation analysis, a multiple of two was applied for employees and a multiple of three was applied for management. Sogou estimated the forfeiture rate to be 1% for Sogou management’s share options granted as of December 31, 2015 and 12% for Sogou employees’ share options granted as of December 31, 2015. The life of the share options is the contract life of the option. Based on the option agreement, the contract life of the option is 10 years. The expected volatility at the valuation date was estimated based on the historical volatility of comparable companies for the period before the grant date with length commensurate with the expected term of the options. Sogou has no history or expectation of paying dividends on its ordinary shares. Accordingly, the dividend yield is estimated to be 0%. Sohu Management Sogou Share Option Arrangement Under an arrangement providing for Sogou share-based awards to be available for grants to members of Sohu’s Board of Directors, management and other key employees (“Sohu Management Sogou Share Option Arrangement”), which was approved by the boards of directors of Sohu and Sogou in March 2011, Sohu has the right to provide to members of Sohu’ Board of Directors, management and other key employees the opportunity to purchase from Sohu up to 12,000,000 ordinary shares of Sogou at a fixed exercise price of $0.625 or $0.001 per share. Of these 12,000,000 ordinary shares, 8,800,000 are Sogou ordinary shares previously held by Sohu and 3,200,000 are Sogou ordinary shares that were newly-issued on April 14, 2011 by Sogou to Sohu at a price of $0.625 per share, or a total of $2.0 million. As of December 31, 2015, Sohu had granted options for the purchase of 10,724,500 Sogou ordinary shares to members of Sohu’ Board of Directors, management and other key employees under the Sohu Management Sogou Share Option Arrangement. Of the granted options for the purchase of 10,724,500 shares, options for the purchase of 8,309,500 shares vest and become exercisable in four equal installments, with each installment vesting upon a service period requirement for Sohu’s management and key employees being met, as well as Sogou’s achievement of performance targets for the corresponding period. The performance target for each installment is set at the beginning of each vesting period. Accordingly, for purposes of recognition of share-based compensation expense, each installment is considered to be granted as of that date. As of December 31, 2015, performance targets had been set for options for the purchase of 8,232,000 shares vesting upon service period requirements for Sohu’s management and key employees being met and Sogou’s achievement of performance targets and, accordingly, such share options were considered granted. As of December 31, 2015, options for the purchase of 8,142,240 shares had become vested and exercisable because both the service period and the performance requirements had been met, and vested options for the purchase of 6,979,700 shares had been exercised. As of December 31, 2015, options for the purchase of 15,000 shares granted to members of Sohu’ Board of Directors had vested and become exercisable, as the service period requirement had been met. The remaining options for the purchase of 2,400,000 shares vest and become exercisable in five equal installments, with (i) the first installment vesting upon Sogou’s IPO and the expiration of all underwriters’ lockup periods applicable to the IPO, and (ii) each of the four subsequent installments vesting on the first, second, third and fourth anniversary dates, respectively, of the closing of Sogou’s IPO. All installments of the options for the purchase of 2,400,000 shares that are subject to vesting upon the completion of Sogou’s IPO were considered granted upon the issuance of the options. The completion of a firm commitment IPO is considered to be a performance condition of the awards. An IPO event is not considered to be probable until it is completed. Under ASC 718 A summary of share option activity as of and for the year ended December 31, 2015 is presented below: Options Number Of Weighted Weighted Outstanding at January 1, 2015 4,165 $ 0.625 Granted 92 0.524 Exercised (587 ) 0.622 Forfeited or expired (6 ) 0.625 Outstanding at December 31, 2015 3,664 0.623 6.67 Vested at December 31, 2015 and expected to vest thereafter 1,175 Exercisable at December 31, 2015 1,175 For the years ended December 31, 2015, 2014 and 2013, total share-based compensation expense recognized for share options under the Sohu Management Sogou Share Option Arrangement was $1.0 million, $8.9 million and $0.7 million, respectively. As of December 31, 2015, there was no unrecognized compensation expense related to unvested share options. The method used to determine the fair value of share options granted to members of Sohu’s Board of Directors, management and other employees was the same as the method used for the share options granted to Sogou’s management and key employees as described above, except for the assumptions used in the BP Model as presented below: Granted to Employees 2013 2014 2015 Average risk-free interest rate 2.10%~2.87% 2.62%~2.93% 2.67%~3.01% Exercise multiple 2~3 2~3 2~3 Expected forfeiture rate (Post-vesting) 0%-8% 0%~8% 0% Weighted average expected option life 9 7 8 Volatility rate 47%~48% 52%~54% 50%~53% Dividend yield 0% 0% 0% Fair value 0.27~0.38 5.23 2.96~7.03 Option Modification In the first and second quarter of 2013, a portion of the share options granted under the Sogou 2010 Share Incentive Plan and the Sohu Management Sogou Share Option Arrangement were exercised early, and the resulting Sogou ordinary shares were transferred to trusts with the original option grantees as beneficiaries. The trusts will distribute the shares to those beneficiaries in installments based on the vesting requirements under the original option agreements. Although these trust arrangements caused a modification of the terms of these share options, the modification was not considered substantive. Accordingly, no incremental fair value related to these shares resulted from the modification, and the remaining share-based compensation expense for these shares will continue to be recognized over the original remaining vesting period. As of December 31, 2015, options for the purchase of 11,660,200 shares granted under the Sogou 2010 Share Incentive Plan and options for the purchase of 40,800 shares granted under the Sohu Management Sogou Share Option Arrangement, or options for the purchase of a total of 11,701,000 shares, had been exercised early but had not been distributed to the beneficiaries of the trusts. All of the early-exercised shares that were distributed to those beneficiaries by the trusts in accordance with the vesting requirements under the original option agreements have been included in the disclosures under the headings “ Sogou 2010 Share Incentive Plan” and “Share-based Awards to Sohu Management Tencent Share-based Awards Granted to Employees Who Transferred to Sogou with Soso Search-related Businesses Certain persons who became Sogou employees when Tencent’s Soso search-related businesses were transferred to Sogou on September 16, 2013 had been granted restricted share units under Tencent’s share award arrangements prior to the transfer of the businesses to Sogou. These Tencent restricted share units will continue to vest under the original Tencent share award arrangements provided the transferred employees continue to be employed by Sogou during the requisite service period. After the transfer of the Soso search-related businesses to Sogou, Sogou applied the guidance in ASC 505-50 As of December 31, 2015, unvested Tencent restricted share unit awards held by these employees provided for the issuance of up to 169,550 ordinary shares of Tencent, taking into consideration a five-for-one split of Tencent’s shares that became effective in May 2014. For the years ended December 31, 2015, 2014 and 2013, share-based compensation expense of $2.0 million, $4.9 million and $1.6 million, respectively, related to these Tencent restricted share units was recognized in the Group’s consolidated statements of comprehensive income. As of December 31, 2015, there was $1.0 million of unrecognized compensation expense related to these unvested restricted share units. This amount is expected to be recognized over a weighted average period of 1.94 years. 3) Changyou.com Limited Share-based Awards Changyou’s 2008 Share Incentive Plan Changyou’s 2008 Share Incentive Plan (the “Changyou 2008 Share Incentive Plan”) originally provided for the issuance of up to 2,000,000 ordinary shares, including ordinary shares issued pursuant to the exercise of share options and upon vesting and settlement of restricted share units. The 2,000,000 reserved shares became 20,000,000 ordinary shares in March 2009 when Changyou effected a ten-for-one share split of its ordinary shares. Most of the awards granted under the Changyou 2008 Share Incentive Plan vest over a period of four years. The maximum term of any share right granted under the Changyou 2008 Share Incentive Plan is ten years from the grant date. The Changyou 2008 Share Incentive Plan will expire in August 2018. Through December 31, 2015, Changyou had granted under the Changyou 2008 Share Incentive Plan 15,000,000 ordinary shares to its former chief executive officer Tao Wang, through Prominence Investments Ltd., which is an entity that may be deemed under applicable rules of the Securities and Exchange Commission to be beneficially owned by Tao Wang. As of December 31, 2015, Changyou had also granted under the Changyou 2008 Share Incentive Plan restricted share units, settleable upon vesting by the issuance of an aggregate of 4,614,098 ordinary shares, to certain members of its management other than Tao Wang, and certain other Changyou employees. For the years ended December 31, 2015, 2014 and 2013, total share-based compensation expense recognized for awards under the Changyou 2008 Share Incentive Plan was negative $0.2 million, $1.3 million and $1.2 million, respectively. The negative amount in 2015 resulted from Changyou’s reversal of share-based compensation expense for restricted share units that were cancelled due to the termination of the holders’ employment prior to vesting. i) Share-based Awards granted before Changyou’s IPO All of the restricted ordinary shares and restricted share units granted before Changyou’s IPO became vested in 2012 and 2013, respectively. Hence there was no share-based compensation expense recognized with respect to such restricted ordinary shares and restricted share units since their respective vesting dates. ii) Share-based Awards granted after Changyou’s IPO Through December 31, 2015, in addition to the share-based awards granted before Changyou’s IPO, Changyou had granted restricted share units, settleable upon vesting with the issuance of an aggregate of 1,581,226 ordinary shares, to certain members of its management other than Tao Wang and to certain of its other employees. These restricted share units are subject to vesting over a four-year period commencing on their grant dates. Share-based compensation expense for such restricted share units is recognized on an accelerated basis over the requisite service period. The fair value of restricted share units was determined based on the market price of Changyou’s ADSs on the grant date. A summary of activity for these restricted share units as of and for the year ended December 31, 2015 is presented below: Restricted Share Units Number of (in thousands) Weighted-Average Unvested at January 1, 2015 220 $ 14.09 Granted 0 0 Vested (95 ) 14.14 Forfeited (105 ) 14.02 Unvested at December 31, 2015 20 14.25 Expected to vest thereafter 20 14.25 For the years ended December 31, 2015, 2014 and 2013, total share-based compensation expense recognized for these restricted share units was negative $0.2 million, $1.3 million and $1.5 million, respectively. As of December 31, 2015, there was $0.1 million of unrecognized compensation expense related to these unvested restricted share units. The expense is expected to be recognized over a weighted average period of 0.86 years. The total fair value of these restricted share units vested during the years ended December 31, 2015, 2014 and 2013 was $0.9 million, $1.1 million and $5.5 million, respectively. Changyou 2014 Share Incentive Plan On June 27, 2014, Changyou reserved 2,000,000 of its Class A ordinary shares under the Changyou.com Limited 2014 Share Incentive Plan (the “Changyou 2014 Share Incentive Plan”) for the purpose of making share incentive awards to certain members of its management and key employees. On November 2, 2014, the number of Class A ordinary shares reserved under the Changyou 2014 Share Incentive Plan increased from 2,000,000 to 6,000,000. As of December 31, 2015, 2,580,000 shares were available for grant under the Changyou 2014 Share Incentive Plan. i) Summary of share option activity On November 2, 2014, Changyou approved the contractual grant of an aggregate of 2,416,000 Class A restricted share units to certain members of its management and certain other employees. On February 16, 2015, Changyou’s Board of Directors approved the conversion of 2,400,000 of these Class A restricted share units into options for the purchase of Class A ordinary shares at an exercise price of $0.01. On June 1, 2015, Changyou’s Board of Directors approved the contractual grant of options for the purchase of an aggregate of 1,998,000 Class A restricted share units to certain members of its management and certain other employees at an exercise price of $0.01. These options provide for vesting in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and the achievement of certain subjective performance targets. The grant date had not been established as of December 31, 2015, because a mutual understanding had not been reached between Changyou and the recipients clarifying the subjective performance requirements. Compensation expense for these options is accrued commencing on the service inception date and is re-measured based on the then-current fair value of the options on each subsequent reporting date until the grant date is established. To determine the fair value of these share options, the public market price of the underlying shares at each reporting date was used and a binomial valuation model was applied. During 2015, 450,000 share options were vested. As of December 31, 2015, there were 450,000 share options that were vested and remained exercisable, with a weighted average remaining contractual life of 8.84 years and aggregate intrinsic value of $5.6 million. For the years ended December 31, 2015 and 2014, total share-based compensation expense recognized for awards under the Changyou 2014 Share Incentive Plan was $15.2 million and $2.6 million, respectively. The total fair values of share options vested on their respective vesting dates for the years ended December 31, 2015 and 2014 was $4.7 million and nil, respectively. ii) Summary of restricted share unit activity As of December 31, 2015, Changyou had contractually granted under the 2014 Share Incentive Plan an aggregate of 16,000 Class A restricted share units to an employee. These Class A restricted share units are subject to vesting over a four-year period commencing on their grant dates. The fair values as of the grant dates of the restricted share units were determined based on market price of Changyou’s ADSs on the grant dates. A summary of activity for these restricted share units as of and for the year ended December 31, 2015 is presented below: Restricted Share Units Number of Units (in thousands) Weighted-Average Unvested at January 1, 2015 16 $12.64 Granted 0 Vested 0 Forfeited (16 ) 12.64 Unvested at December 31, 2015 0 Expected to vest thereafter 0 Due to the termination of employment of an employee during the second quarter of 2015 prior to vesting of the restricted share units held by the employee, Changyou reversed share-based compensation expense in the amount of $17,000. As of December 31, 2015, there was no unrecognized compensation expense for these restricted share units, as all of them had been forfeited. 4) Sohu Video Share-based Awards On January 4, 2012, Sohu Video adopted the Video 2011 Share Incentive Plan, under which 25,000,000 ordinary shares of Sohu Video are reserved for the purpose of making share incentive awards to management and key employees of Sohu Video and to Sohu management. The maximum term of any share incentive award granted under the Video 2011 Share Incentive Plan is ten years from the grant date. The Video 2011 Share Incentive Plan will expire on January 3, 2021. As of December 31, 2015, grants of options for the purchase of 16,368,200 ordinary shares of Sohu Video had been contractually made and were subject to vesting in four equal installments, with each installment vesting upon a service period requirement being met, as well as Sohu Video’s achievement of performance targets for the corresponding period. As of December 31, 2015, options for the purchase of 4,972,800 ordinary shares were vested. For the years ended December 31, 2015 and 2014, total share-based compensation expense recognized for vested options under the Video 2011 Share Incentive Plan was $0.3 million and $4.0 million, respectively. The fair value of the options contractually granted to management and key employees of Sohu Video and to Sohu management was estimated on the reporting date using the BP Model, with the following assumptions used: Assumptions Adopted 2015 Average risk-free interest rate 2.54% Exercise multiple 2.8 Expected forfeiture rate (post-vesting) 10% Weighted average expected option life 6 Volatility rate 57.7% Dividend yield 0 Fair value 0.87 5) 7Road Share-based Awards See Note 2—Summary of Significant Accounting Policies—Share-based Compensation Expense. |
Changyou Share Repurchase Progr
Changyou Share Repurchase Program | 12 Months Ended |
Dec. 31, 2015 | |
Changyou Share Repurchase Program [Abstract] | |
Changyou Share Repurchase Program | 17. Changyou Share Repurchase Program On July 27, 2013, ChangyouÂ’s Board of Directors authorized a share repurchase program of up to $100 million of the outstanding ADSs of Changyou over a two-year period from July 27, 2013 to July 26, 2015. In 2015, Changyou repurchased 610,046 ADSs, representing 1,220,092 ordinary shares, at an aggregate cost of approximately $14.2 million. As of the July 26, 2015 expiration date of the share repurchase program, Changyou had repurchased under the program an aggregate of 1,364,846 Changyou ADSs, representing 2,729,692 ordinary shares, at an aggregate cost of approximately $35 million. |
Significant Business Transactio
Significant Business Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Significant Business Transactions [Abstract] | |
Significant Business Transactions | 18. Significant Business Transactions Changyou-related Transactions On August 17, 2015, (i) Sogou Transactions On October 22, 2010, Sogou issued and sold 24.0 million, 14.4 million and 38.4 million, respectively, of its newly-issued Series A Preferred Shares to Alibaba Investment Limited, a subsidiary of Alibaba Group Holding Limited (“Alibaba”); China Web; and Photon for $15 million, $9 million, and $24 million, respectively. On June 29, 2012, Sohu purchased Alibaba’s 24.0 million Sogou Series A Preferred Shares for a purchase price of $25.8 million. On September 16, 2013, Sogou entered into a series of agreements with Tencent, Sohu Search and Photon pursuant to which Sogou issued Series B Preferred Shares and Class B Ordinary Shares to Tencent for a net amount of $448 million in cash and Tencent transferred its Soso search-related businesses and certain other assets to Sogou (collectively, the “Sogou-Tencent Transactions”). Also on that date, Sogou entered into Repurchase Option Agreements with Sohu Search and Photon, and a Repurchase/put Option Agreement with China Web, with respect to all of the Series A Preferred Shares of Sogou held by Sohu Search and China Web, and a portion of the Series A Preferred Shares of Sogou held by Photon. Also on that date, Sogou, Sohu Search, Photon, Mr. Xiaochuan Wang, four other members of Sogou’s management (collectively, the “Sohu Parties”) and Tencent entered into a Shareholders Agreement (the “Shareholders Agreement”) under which the parties agreed to vote their Sogou shares in all elections of directors to elect three designees of Sohu Search and two designees of Tencent. On September 17, 2013, Sogou paid a special dividend to the three holders of Series A Preferred Shares of Sogou in the aggregate amount of $300.9 million, of which Sohu Search received $161.2 million, Photon received $43.0 million, and China Web received $96.7 million. On December 2, 2013, Tencent invested $1.5 million in cash in Sogou Information, which is a VIE of Sogou, as additional consideration in connection with the Sogou-Tencent Transactions, in return for a 45% equity interest in Sogou Information. In March 2014, Sogou purchased from China Web, pursuant to the Repurchase/put Option Agreement entered into in September 2013, 14.4 million Series A Preferred Shares of Sogou, for an aggregate purchase price of $47.3 million. In June 2014, Sogou repurchased approximately 4.2 million of its Class A Ordinary Shares from noncontrolling shareholders, a majority of whom were employees of the Group, for an aggregate purchase price of $41.6 million. In September 2015, Sogou purchased from Sohu Search and Photon, pursuant to the Repurchase Option Agreements entered into in September 2013, 24.0 million and 6.4 million Series A Preferred Shares of Sogou, for an aggregate purchase price of $78.8 million and $21.0 million, respectively. After these repurchases, the Sohu Group holds approximately 36% of the outstanding equity capital of Sogou, assuming that all share options under the Sogou 2010 Share Incentive Plan and all share options under the Sohu Management Sogou Share Option Arrangement are granted and exercised and that all of the 4.2 million Class A Ordinary Shares Sogou repurchased in June 2014 were issued to shareholders other than Sohu.com Inc. Pursuant to the Shareholders Agreement, the Sohu Group holds approximately 52% of the total voting power and control the election of the Board of Directors of Sogou, assuming that Tencent’s non-voting Class B Ordinary Shares are converted to voting shares, and that all share options under the Sogou 2010 Share Incentive Plan and all share options under the Sohu Management Sogou Share Option Arrangement are granted and exercised. As Sohu.com Inc. is the controlling shareholder of Sogou, Sohu.com Inc. consolidates Sogou in the Group’s consolidated financial statements, and recognizes noncontrolling interest reflecting economic interests in Sogou held by shareholders other than Sohu.com Inc. Sohu’s Shareholding in Sogou As of December 31, 2015, Sogou had outstanding a combined total of 330,870,013 ordinary shares and preferred shares held as follows: (i) Sohu: 132,230,550 Class A Ordinary Shares, of which 5,030,550 shares are subject to purchase from Sohu under options held by Sohu management and key employees; (ii) Photon:32,000,000 Series A Preferred Shares; (iii) Tencent: 6,757,875 Class A Ordinary Shares, 65,431,579 Series B Preferred Shares and 79,368,421 non-voting Class B Ordinary Shares; and (iv) Various employees of Sogou and Sohu: 15,081,588 Class A Ordinary Shares. Because no ordinary shares will be issued with respect to share options granted by Sogou until they are vested and exercised, share options granted by Sogou that have not vested and vested share options that have not yet been exercised are not included as outstanding shares of Sogou and have no impact on the Sohu Group’s basic net income per share. Unvested share options with performance targets achieved and vested share options that have not yet been exercised do, however, have a dilutive impact on the Sohu Group’s dilutive net income per share. See Note 21—Net Income/(Loss) per Share. Terms of Sogou Preferred Shares In connection with the Sogou-Tencent Transactions, Sogou’s shareholders adopted a Fifth Amended and Restated Memorandum of Association and Second Amended and Restated Articles of Association (together, the “Revised Sogou Memorandum and Articles”), which became effective on September 16, 2013. The following is a summary of some of the key terms of the Sogou Series A Preferred Shares and Series B Preferred Shares (collectively, the “Sogou Preferred Shares”) under the Revised Sogou Memorandum and Articles. Dividend Rights Sogou may not declare or pay dividends on its Class A Ordinary Shares or Class B Ordinary Shares (collectively, “Ordinary Shares”) unless the holders of the Sogou Preferred Shares then outstanding first receive a dividend on each outstanding Preferred Share in an amount at least equal to the sum of (i) the dividends that would have been payable to the holder of such Preferred Share if such share had been converted into Ordinary Shares, at the then-applicable conversion rate, immediately prior to the record date for such dividend, and (ii) all accrued and unpaid Accruing Dividends. “Accruing Dividends” are calculated from the date of issuance of the Series A Preferred Shares at the rate per annum of $0.0375 per Series A Preferred Share and from the date of issuance of the Series B Preferred Shares at the rate per annum of $0.411 per Series B Preferred Share. Liquidation Rights In the event of any “Liquidation Event,” such as the liquidation, dissolution or winding up of Sogou, a merger or consolidation of Sogou resulting in a change of control, the sale of substantially all of Sogou’s assets or similar events, the holders of Series B Preferred Shares are entitled to receive an amount per share equal to the greater of (i) $6.847 plus any unpaid Accruing Dividends or (ii) such amount per share as would have been payable if the Series B Preferred Shares had been converted into Ordinary Shares prior the Liquidation Event, and holders of Series A Preferred Shares are entitled to receive, after payment to the holders of the Series B Preferred Shares but before any payment to holders of Ordinary Shares, an amount equal to the greater of (i) 1.3 times their original investment in the Series A Preferred Shares plus all accrued but unpaid Accruing Dividends or (ii) such amount per share as would be payable if the Series A Preferred Shares had been converted into Ordinary Shares immediately prior to the Liquidation Event. Redemption Rights The Sogou Preferred Shares are not redeemable at the option of the holders. Conversion Rights Each Sogou Preferred Share is convertible, at the option of the holder, at any time, and without the payment of additional consideration by the holder. Each Sogou Preferred Share is convertible into such number of Class A Ordinary Shares as is determined, in the case of Series A Preferred Shares, by dividing $0.625 by the then-effective conversion price for Series A Preferred Shares, which is initially $0.625, and, in the case of Series B Preferred Shares, by dividing $7.267 by the then-effective conversion price for Series B Preferred Shares, which is initially $7.267. The conversion prices of the Sogou Preferred Shares are subject to adjustment on a weighted average basis upon the issuance of additional equity shares, or securities convertible into equity shares, at a price per share less than $0.625, in the case of Series A Preferred Shares, or less than $7.267, in the case of Series B Preferred Shares, subject to certain customary exceptions, such as shares issued pursuant to the Sogou 2010 Share Incentive Plan. Each Sogou Preferred Share will be automatically converted into Class A Ordinary Shares of Sogou upon the closing of a qualified IPO of Sogou based on the then-effective conversion ratio of such Sogou Preferred Share, which is currently one-for-one for both Series A Preferred Shares and Series B Preferred Shares. Voting Rights Each holder of Sogou Preferred Shares is entitled to cast the number of votes equal to the number of Class A Ordinary Shares into which the Sogou Preferred Shares held by such holder are then convertible. Other Rights The holders of Sogou Preferred Shares have various other rights typical of preferred share investments. Terms of Sogou Class A Ordinary Shares and Class B Ordinary Shares The Class A Ordinary Shares and Class B Ordinary Shares have identical rights, except that Class B Ordinary Shares do not have voting rights unless the holders of at least a majority of the then outstanding Class B Ordinary Shares elect, by written notice to Sogou, to convert them into shares with voting rights. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | 19. Business Combinations Sogou Shi Ji Guang Su On September 16, 2013, as part of the Sogou-Tencent Transactions, Sogou acquired from Tencent Shi Ji Guang Su, which conducts Soso search-related businesses, and other related assets for cash consideration of approximately $27.6 million (the “Shi Ji Guang Su Acquisition”). The Sohu Group began to consolidate Shi Ji Guang Su’s financial statements commencing September 16, 2013. Sogou had paid all of the $27.6 million consideration for the Shi Ji Guang Su Acquisition in 2014. The allocation of the consideration of the assets acquired and liabilities assumed based on their fair value on the date of Shi Ji Guang Su Acquisition was as follows (in thousands): As of September 16, 2013 Cash $ 3,249 Receivables 7,967 Fixed assets acquired 21,964 Goodwill 4,199 Identifiable intangible assets acquired 5,686 Liabilities (15,447 ) Total $ 27,618 The fixed assets acquired in the Shi Ji Guang Su Acquisition consist primarily of computer equipment and hardware. The identifiable intangible assets acquired in the Shi Ji Guang Su Acquisition consist primarily of developed technologies, trademarks and domain names. These identifiable intangible assets were valued using the income approach. The excess of the purchase price over identifiable tangible and intangible assets acquired and identifiable liabilities assumed was recorded as goodwill. Based on an assessment of Shi Ji Guang Su’s financial performance prior to the Shi Ji Guang Su Acquisition, Shi Ji Guang Su is not considered material to the Sohu Group. Thus the Group’s management concluded that the presentation of pro forma financial information with respect to the results of operations of the Sohu Group including Shi Ji Guang Su is not necessary. Changyou MoboTap On July 16, 2014, Changyou, through a wholly-owned subsidiary, entered into an investment agreement with MoboTap Inc. (“MoboTap”), a Cayman Islands company which is the mobile technology developer behind the Dolphin Browser, MoboTap’s subsidiaries and variable interest entities, and MoboTap’s shareholders pursuant to which Changyou purchased from then existing shareholders of MoboTap at the closing, which took place on July 31, 2014, shares of MoboTap representing 51% of the equity interests in MoboTap on a fully-diluted basis for approximately $90.8 million in cash. In addition, Changyou has the right to purchase up to 10% of the equity interests in MoboTap from the noncontrolling shareholders, at a price of 20% below the IPO price, before a qualified IPO of MoboTap. If MoboTap achieves specified performance milestones for 2016 and certain specified key employees continue their employment with MoboTap at the time the milestones are achieved, but there has not been an IPO by MoboTap, the noncontrolling shareholders of MoboTap will have a one-time right to put to Changyou shares of MoboTap held by them, representing up to 15% of the equity interests in MoboTap, for an aggregate price of up to $53 million. The Sohu Group began to consolidate MoboTap’s financial statements commencing with the closing of the acquisition. On the acquisition date, the allocation of the consideration of the assets acquired and liabilities assumed based on their fair values was as follows (in thousands): As of July 31, 2014 Cash consideration $ 90,830 Repurchase option 793 Identifiable intangible assets acquired 27,000 Goodwill 113,040 Other assets 6,714 Put option (298 ) Liabilities assumed (2,995 ) Noncontrolling interest (53,424 ) Total $ 90,830 The acquired identifiable intangible assets represent the Dolphin Browser user base, technology and trademark, the useful lives of which were 2.4 years, 5.4 years and 10.4 years, respectively. The acquired user base was valued with the cost saving approach, and the acquired technology and trademark were valued with the income approach. Goodwill of $113.0 million primarily represents the expected synergies from combining the operations of Changyou and MoboTap, which are complementary to each other. In accordance with ASC 350 Based on an assessment of MoboTap’s financial performance conducted in connection with the acquisition, MoboTap was not considered material to the Sohu Group. Thus the Sohu Group’s management concluded that the presentation of pro forma financial information with respect to the results of operations of the Sohu Group including the acquired MoboTap was not necessary. The operating results of MoboTap, which are not significant to the Sohu Group, have been included in the Sohu Group’s consolidated financial statements since the acquisition date. As the Dolphin Browser serves as a gateway to a host of user activities on mobile devices and contributes to Changyou’s platform channel business, MoboTap is reported under the Changyou segment. In 2015, given that the performance of the Dolphin Browser operated by MoboTap was below original expectations, Changyou’s management concluded that the Dolphin Browser was unable to provide the expected synergies with Changyou’s platform business. Accordingly, Changyou recognized a $29.6 million impairment loss for goodwill and a $8.9 million impairment loss for acquired intangible assets generated in the acquisition of the MoboTap business. Doyo In November 2013, Changyou acquired 100% of the equity interests in Doyo, a game resources portal, for fixed cash consideration of approximately $6.5 million, and variable cash consideration up to a maximum of $7.3 million, which is payable if and when Doyo achieved performance milestones specified in the acquisition agreement. Changyou’s management performed with the assistance of a third party valuer a valuation as of the date of acquisition of the variable cash contingent consideration considering the possibility of Doyo’s achieving the milestones, and determined that the fair value was $4.8 million at the time of the acquisition. The Sohu Group began to consolidate Doyo’s financial statements upon the acquisition. The allocation of the consideration of the assets acquired and liabilities assumed based on their historical carrying amounts was as follows (in thousands): As of November 29, 2013 Cash Consideration $ 6,521 Contingent Consideration 4,785 Total consideration 11,306 Tangible assets 1,324 Identifiable intangible assets acquired 3,620 Goodwill 7,626 Liabilities assumed (1,264 ) Total $ 11,306 Since Doyo primarily engages in the online advertising and traffic monetization business, which has similar economic characteristics with the 17173.com Website, Doyo is aggregated into the business associated with the 17173.com Website as a reporting unit. The excess of the purchase price over the tangible assets, identifiable intangible assets (mainly user base and domain names) acquired and liabilities assumed was recorded as goodwill relating to the business associated with the 17173.com Website. The acquired identifiable intangible assets were valued by various approaches, including the income approach, as appropriate. Total goodwill of $7.6 million primarily represents the expected synergies from combining operations of Changyou and Doyo, which are complementary to each other. In accordance with ASC 350 Prior to the acquisition, Doyo did not prepare its financial statements in accordance with U.S. GAAP. The Group determined that the cost of reconstructing the financial statements of Doyo for the periods prior to the acquisition outweighed the benefits. Based on a comparison of Doyo’s financial performance for the year preceding the acquisition and the Sohu Group’s financial performance for that year, the Sohu Group’s management determined that Doyo was not material to the Sohu Group. Thus the Group’s management believes the presentation of pro forma financial information with respect to the results of operations of the Sohu Group for the business combination is not necessary. In September 2015, Changyou entered into an agreement to sell all of the equity interests of Doyo. The aggregate consideration under the agreement includes cash consideration of approximately $2.9 million, and forgiveness, upon the completion of the sale, of the $6.0 million contingent consideration payable. Management treated the fact that the total consideration for the sale of Doyo pursuant to the agreement will be lower than the carrying value of Doyo’s net assets as an indicator that the goodwill associated with Doyo might be impaired. Therefore, in September 2015, management performed a goodwill impairment test and recognized goodwill impairment in the amount of $1.9 million. The transaction was completed on October 27, 2015 and there was no further gain or loss recognized in the Group’s consolidated statements of comprehensive income. RaidCall On November 19, 2013, Changyou entered into an investment agreement with Beijing Kunlun Tech Co., Ltd. and certain of its affiliates (collectively, the “Kalends Group”), pursuant to which TalkTalk was incorporated in the British Virgin Islands and initially wholly-owned by the Kalends Group, RaidCall (HK) Limited (“RaidCall HK”) was incorporated in Hong Kong as a wholly-owned subsidiary of TalkTalk, and Beijing Changyou RaidCall Internet Technology Co., Ltd. (“Changyou RaidCall”) was incorporated in the PRC as a wholly-owned subsidiary of RaidCall HK. The Kalends Group then transferred to RaidCall HK and Changyou RaidCall all of the assets associated with a free social communication software platform, which is specifically designed for online gaming and music-related value-added services, that the Kalends Group operated through a series of Internet platforms (the “RaidCall Business”). On December 24, 2013, pursuant to the investment agreement, Changyou acquired 62.5% of the equity interests, on a fully-diluted basis, in TalkTalk for total cash consideration of $47.6 million. Of the total consideration, $27.6 million was paid to purchase from the Kalends Group a portion of the ordinary shares of TalkTalk held by the Kalends Group and $20.0 million was injected for newly-issued ordinary shares of TalkTalk. Also effective upon the closing of the transaction, 15% of the equity interests of TalkTalk on a fully-diluted basis were reserved for grants of equity incentive awards to key employees associated with RaidCall and the Kalends Group continued to hold the remaining 22.5% of the equity interests on a fully-diluted basis. On the acquisition date, the allocation of the consideration of the assets acquired and liabilities assumed based on their fair values was as follows (in thousands): As of December 24, 2013 Cash Consideration $ 47,627 Tangible assets 20,016 Identifiable intangible assets acquired 17,888 Goodwill 33,740 Fair value of noncontrolling interest (17,172 ) Liability assumed (6,845 ) Total $ 47,627 The acquired identifiable intangible assets were valued by the income approach. The excess of the purchase price over the tangible assets, identifiable intangible assets (consisting primarily of software technology and domain name) acquired and liabilities assumed was recorded as goodwill relating to the Changyou segment. Goodwill of $33.7 million primarily represents synergies between Changyou’s existing online game business and the RaidCall Business that had been expected to result from an enhancement of game players’ experience through Changyou’s offering of the RaidCall communications tool in Changyou’s online games. In accordance with ASC 350 Prior to the acquisition, the RaidCall Business did not prepare its financial statements in accordance with U.S. GAAP. The Group determined that the cost of reconstructing the financial statements of the RaidCall Business for the periods prior to the acquisition outweighed the benefits. Based on a comparison of the RaidCall Business’s financial performance for the year preceding the acquisition and the Sohu Group’s financial performance for that year, the Sohu Group’s management determined that the RaidCall Business was not material to the Sohu Group. Thus the Group’s management believes the presentation of pro forma financial information with respect to the results of operations of the Sohu Group for the business combination is not necessary. In 2014, Changyou’s management concluded that RaidCall was unable to provide the expected synergies with Changyou’s online games business. Accordingly, Changyou fully impaired the goodwill and intangible assets generated in the acquisition of the RaidCall business. |
Noncontrolling Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | 20. Noncontrolling Interest The primary majority-owned subsidiaries and VIEs of the Sohu Group which are consolidated in its consolidated financial statements with noncontrolling interest recognized are Sogou and Changyou. Noncontrolling Interest in the Consolidated Balance Sheets As of December 31, 2014 and 2015, noncontrolling interest in the consolidated balance sheets was $487.2 million and $489.7 million, respectively. As of December 31, 2014 2015 Sogou $ 145,538 $ 125,314 Changyou 341,707 364,416 Total $ 487,245 $ 489,730 Noncontrolling Interest of Sogou As of December 31, 2015 and 2014, noncontrolling interest of Sogou of $125.3 million and $145.5 million, respectively, was recognized in the Sohu GroupÂ’s consolidated balance sheets, representing SogouÂ’s cumulative results of operations attributable to shareholders other than Sohu.com Inc., SogouÂ’s share-based compensation expense, the investments of shareholders other than Sohu.com Inc. in Preferred Shares and Ordinary Shares of Sogou, the repurchase of Sogou Series A Preferred Shares from noncontrolling shareholders in March 2014 and September 2015, and SogouÂ’s repurchase of Class A Ordinary Shares from noncontrolling shareholders in June 2014. Noncontrolling Interest of Changyou As of December 31, 2015 and 2014, noncontrolling interest of Changyou of $364.4 million and $341.7 million, respectively, was recognized in the Sohu GroupÂ’s consolidated balance sheets, representing a 31% and 32% economic interest, respectively, in ChangyouÂ’s net assets held by shareholders other than Sohu.com Inc. and reflecting the reclassification of ChangyouÂ’s share-based compensation expense from shareholdersÂ’ additional paid-in capital to noncontrolling interest. Noncontrolling Interest in the Consolidated Statements of Comprehensive Income For the years ended December 31, 2015, 2014 and 2013, net income/ (loss) attributable to the noncontrolling interest in the consolidated statements of comprehensive income was $146.5 million, negative $32.3 million and $82.0 million, respectively. Year Ended December 31, 2013 2014 2015 Sogou $ (5,884 ) $ (14,202 ) $ 101,656 Changyou 87,289 (18,873 ) 44,886 Others 639 766 0 Total $ 82,044 $ (32,309 ) $ 146,542 Noncontrolling Interest of Sogou For the years ended December 31, 2015, 2014 and 2013, respectively, $101.7 million net income, a $14.2 million net loss and a $5.9 million net loss, respectively, attributable to the noncontrolling interest of Sogou was recognized in the Sohu GroupÂ’s consolidated statements of comprehensive income, representing SogouÂ’s net income /(loss) attributable to shareholders other than Sohu.com Inc. Noncontrolling Interest of Changyou For the years ended December 31, 2015, 2014 and 2013, respectively, $44.9 million net income, a $18.9 million net loss and a $87.3 million net income, respectively, attributable to the noncontrolling interest of Changyou was recognized in the Sohu GroupÂ’s consolidated statements of comprehensive income, representing a 31%, 32% and 32%, respectively, economic interest in Changyou attributable to shareholders other than Sohu.com Inc. |
Net Income _(Loss) per Share
Net Income /(Loss) per Share | 12 Months Ended |
Dec. 31, 2015 | |
Net Income /(Loss) per Share [Abstract] | |
Net Income /(Loss) per Share | 21. Net Income /(Loss) per Share Basic net income /(loss) per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income /(loss) per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares comprise shares issuable upon the exercise or settlement of share-based awards using the treasury stock method. The dilutive effect of share-based awards with performance requirements is not considered before the performance targets are actually met. 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. For the year ended December 31, 2015, 55,870 common shares potentially issuable upon the exercise or settlement of share-based awards using the treasury stock method were anti-dilutive and excluded from the denominator for calculation of diluted net loss per share. Additionally, for purposes of calculating the numerator of diluted net income /(loss) per share, the net income /(loss) attributable to Sohu.com Inc. is adjusted as follows. The adjustment will not be made if there is an anti-dilutive effect. (1) Sogou’s net income /(loss) attributable to Sohu.com Inc. is determined using the percentage that the weighted average number of Sogou shares held by Sohu.com Inc. represents of the weighted average number of Sogou Preferred Shares and Ordinary Shares, shares issuable upon the conversion of convertible preferred shares under the if-converted method, and shares issuable upon the exercise or settlement of share-based awards under the treasury stock method, and is not determined by allocating Sogou’s net income /(loss) to Sohu.com Inc. using the methodology for the calculation of net income /(loss) attributable to the Sogou noncontrolling shareholders discussed in Note 20—Noncontrolling Interest. In the calculation of Sohu.com Inc.’s diluted net income /(loss) per share, assuming a dilutive effect, the percentage of Sohu.com Inc.’s shareholding in Sogou was calculated by treating convertible preferred shares issued by Sogou as having been converted at the beginning of the period and unvested share options with the performance targets achieved as well as vested but unexercised share options as having been exercised during the period. The dilutive effect of share-based awards with a performance requirement was not considered before the performance targets were actually met. The effect of this calculation is presented as “incremental dilution from Sogou” in the table below. Assuming an anti-dilutive effect, all of these Sogou shares and share options are excluded from the calculation of Sohu.com Inc.’s diluted income /(loss) per share. As a result, Sogou’s net income /(loss) attributable to Sohu.com Inc. on a diluted basis equals the number used for the calculation of Sohu.com Inc.’s basic net income /(loss) per share. For the year ended December 31, 2015, all of these Sogou shares and share options had an anti-dilutive effect, and therefore were excluded from the calculation of Sohu.com Inc.’s diluted net income /(loss) per share, and “incremental dilution from Sogou” in the table below was zero. (2) Changyou’s net income /(loss) attributable to Sohu.com Inc. is determined using the percentage that the weighted average number of Changyou shares held by Sohu.com Inc. represents of the weighted average number of Changyou ordinary shares and shares issuable upon the exercise or settlement of share-based awards under the treasury stock method, and not by using the percentage held by Sohu.com Inc. of the total economic interest in Changyou, which is used for the calculation of basic net income per share. In the calculation of Sohu.com Inc.’s diluted net income /(loss) per share, assuming a dilutive effect, all of Changyou’s existing unvested restricted share units, and vested restricted share units that have not yet been settled, are treated as vested and settled by Changyou under the treasury stock method, causing the percentage of the weighted average number of shares held by Sohu.com Inc. in Changyou to decrease. As a result, Changyou’s net income /(loss) attributable to Sohu.com Inc. on a diluted basis decreased accordingly. The effect of this calculation is presented as “incremental dilution from Changyou” in the table below. Assuming an anti-dilutive effect, all of these Changyou restricted share units are excluded from the calculation of Sohu.com Inc.’s diluted net income /(loss) per share. As a result, Changyou’s net income /(loss) attributable to Sohu.com Inc. on a diluted basis equals the number used for the calculation of Sohu.com Inc.’s basic net income /(loss) per share. For the year ended December 31, 2015, all of these Changyou restricted share units had a dilutive effect, and therefore were included in the calculation of Sohu.com Inc.’s diluted net income /(loss) per share. This impact is presented as “incremental dilution from Changyou” in the table below. The portion of the special dividend paid by Sogou on September 17, 2013 to holders of Series A Preferred Shares of Sogou other than Sohu.com Inc., in the amount of $139.7 million, is a payment to noncontrolling preferred shareholders, of which Sohu.com Inc., as a holder of ordinary shares of Sogou, is deemed to have contributed $82.4 million. This $82.4 million has also been subtracted from Net income attributable to Sohu.com Inc. for the year ended December 31, 2013 to arrive at net income available to ordinary shareholders in the calculation of net income per share attributable to Sohu.com Inc. In March 2014, Sogou purchased from China Web 14.4 million Series A Preferred Shares of Sogou for an aggregate purchase price of $47.3 million. In September 2015, Sogou purchased from Photon 6.4 million Series A Preferred Shares of Sogou for an aggregate purchase price of $21.0 million. These transactions gave rise to deemed dividends of $27.7 million and $11.9 million, respectively, which were deemed to have been contributed by Sohu.com Inc., as a holder of ordinary shares of Sogou, representing a portion of the differences between the prices Sogou paid to China Web and Photon for the Series A Preferred Shares and the carrying amounts of these Series A Preferred Shares in the Group’s consolidated financial statements. The following table presents the calculation of the Sohu Group’s basic and diluted net loss per share (in thousands, except per share data). Year Ended December 31, 2013 2014 2015 Numerator: Net loss attributable to Sohu.com Inc., basic (after subtracting the dividend or deemed dividend to noncontrolling Sogou Series A Preferred shareholders) $ (15,298 ) $ (166,657 ) $ (49,598 ) Effect of dilutive securities: Incremental dilution from Sogou (2,138 ) (3,919 ) 0 Incremental dilution from Changyou (826 ) 0 (1,231 ) Net loss attributable to Sohu.com Inc., diluted $ (18,262 ) $ (170,576 ) $ (50,829 ) Denominator: Weighted average basic common shares outstanding 38,255 38,468 38,598 Effect of dilutive securities: Share options and restricted share units 247 0 0 Weighted average diluted common shares outstanding $ 38,502 $ 38,468 $ 38,598 Basic net loss per share attributable to Sohu.com Inc. $ (0.40 ) $ (4.33 ) $ (1.28 ) Diluted net loss per share attributable to Sohu.com Inc. $ (0.47 ) $ (4.43 ) $ (1.32 ) |
China Contribution Plan
China Contribution Plan | 12 Months Ended |
Dec. 31, 2015 | |
China Contribution Plan [Abstract] | |
China Contribution Plan | 22. China Contribution Plan The Sohu GroupÂ’s subsidiaries and consolidated VIEs in China participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese labor regulations require the GroupÂ’s subsidiaries and consolidated VIEs to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the GroupÂ’s China-based subsidiaries and consolidated VIEs have no further commitments beyond their monthly contributions. For the years ended December 31, 2015, 2014 and 2013, the GroupÂ’s China based subsidiaries and consolidated VIEs contributed a total of $132.6 million, $134.2 million and $100.7 million, respectively, to these funds. |
Profit Appropriation
Profit Appropriation | 12 Months Ended |
Dec. 31, 2015 | |
Profit Appropriation [Abstract] | |
Profit Appropriation | 23. Profit Appropriation The Sohu Group’s China-based subsidiaries and VIEs are required to make appropriations to certain non-distributable reserve funds. In accordance with the China Foreign Investment Enterprises laws, those of the Group’s China-based subsidiaries that are considered under PRC law to be WFOEs are required to make appropriations from their after-tax profit as determined under generally accepted accounting principles in the PRC (the “after-tax-profit under PRC GAAP”) to non-distributable reserve funds, including (i) a general reserve fund, (ii) an enterprise expansion fund, and (iii) a staff bonus and welfare fund. Each year, at least 10% of the after-tax-profit under PRC GAAP is required to be set aside as general reserve fund until such appropriations for the fund equal 50% of the registered capital of the applicable entity. The appropriation for the other two reserve funds is at the Group’s discretion as determined by the Board of Directors of each entity. Pursuant to the China Company Laws, those of the Group’s China-based subsidiaries that are considered under PRC law to be domestically funded enterprises, as well as the Group’s VIEs, are required to make appropriations from their after-tax-profit under PRC GAAP to non-distributable reserve funds, including a statutory surplus fund and a discretionary surplus fund. Each year, at least 10% of the after-tax-profit under PRC GAAP is required to be set aside as statutory surplus fund until such appropriations for the fund equal 50% of the registered capital of the applicable entity. The appropriation for the discretionary surplus fund is at the Company’s discretion as determined by the Board of Directors of each entity. Upon certain regulatory approvals and subject to certain limitations, the general reserve fund and the statutory surplus fund can be used to offset prior year losses, if any, and can be converted into paid-in capital of the applicable entity. For the years ended December 31, 2015, 2014 and 2013, the total amount of profits contributed to these funds by the Group was $7.7 million, $4.9 million and $3.0 million, respectively. As of December 31, 2015 and 2014, the total amount of profits contributed to these funds by the Group was $46.8 million and $39.0 million, respectively. As a result of these and other restrictions under PRC laws and regulations, the Group’s China-based subsidiaries and VIEs are restricted in their ability to transfer a portion of their net assets in the form of non-distributable reserve funds to the Company in the form of dividends, loans or advances. Even though the Company currently does not require any such dividends, loans or advances from its China-based subsidiaries and VIEs for working capital and other funding purposes, the Company may in the future require additional cash resources from its China-based subsidiaries and VIEs due to changes in business conditions, to fund future acquisitions and development, or to declare and pay dividends to or make distributions to its shareholders. |
Concentration Risks
Concentration Risks | 12 Months Ended |
Dec. 31, 2015 | |
Concentration Risks [Abstract] | |
Concentration Risks | 24. Concentration Risks Because its operations are substantially conducted in the PRC, the Sohu Group is subject to PRC-related political, economic and legal risks. Besides these risks, the Sohu Group may also have the following concentration risks. Operation Risk For the years ended December 31, 2015, 2014 and 2013, there are no revenues from clients that individually represent greater than 10% of the total revenues. For the year ended December 31, 2015, 16% of the Sohu GroupÂ’s total revenue and 50% of the Sohu GroupÂ’s online game revenue was derived from a single PC game, TLBB, which was launched in May 2007. Financial instruments that potentially subject the Sohu Group to concentration risks consist primarily of cash and cash equivalents, restricted time deposits and short-term investments. Cash and cash equivalents in Sohu Group are mainly denominated in RMB and in U.S. dollars. Restricted time deposits and short-term investments are denominated in RMB. The Group may experience economic losses and negative impacts on earnings and equity as a result of fluctuations in the exchange rate between the U.S. dollar and the 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 Group may experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currency. Credit Risk As of December 31, 2015, approximately 59% of the Sohu GroupÂ’s cash and cash equivalents were held in 16 financial institutions in China. The remaining cash and cash equivalents were held primarily in financial institutions in Hong Kong and the U.S. As of December 31, 2014, approximately 46% of the Sohu GroupÂ’s cash and cash equivalents were held in 15 financial institutions in China. The remaining cash and cash equivalents were mainly held in financial institutions in Hong Kong and the U.S. The Sohu Group holds its cash and bank deposits at Chinese financial institutions that are among the largest and most respected in the PRC and at international financial institutions with high ratings from internationally-recognized rating agencies. The management chooses these institutions because of their reputations and track records for stability, and their known large cash reserves, and management periodically reviews these institutionsÂ’ reputations, track records, and reported reserves. Management expects that any additional institutions that the Sohu Group uses for its cash and bank deposits will be chosen with similar criteria for soundness. As a further means of managing its credit risk, the Sohu Group holds its cash and bank deposits in a number of different financial institutions. As of December 31, 2015 and 2014, the Sohu Group held its cash and bank deposits in different financial institutions and held no more than approximately 28% and 24%, respectively, of its total cash at any single institution. Under PRC law, it is generally required that a commercial bank in the PRC that holds third party cash deposits protect the depositorsÂ’ rights over and interests in their deposited money; PRC banks are subject to a series of risk control regulatory standards; and PRC bank regulatory authorities are empowered to take over the operation and management of any PRC bank that faces a material credit crisis. For the credit risk related to accounts receivable, the Sohu Group performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. Historically, such losses have been within managementÂ’s expectations. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2015 | |
Restricted Net Assets [Abstract] | |
Restricted Net Assets | 25. Restricted Net Assets Relevant PRC law and regulations permit payment of dividends by PRC-based operating entities only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, a PRC-based operating entity is required to annually appropriate 10% of net after-tax income to the statutory surplus reserve fund (see Note 23) prior to payment of any dividends, unless such reserve funds have reached 50% of the entityÂ’s registered capital. As a result of these and other restrictions under PRC law and regulations, PRC-based operating entities are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances. Even though the Company currently does not require any such dividends, loans or advances from PRC-based operating entities for working capital and other funding purposes, the Company may in the future require additional cash resources from PRC-based operating entities due to changes in business conditions, to fund future acquisitions and development, or to declare and pay dividends to or distribution to its shareholders. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2015 | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract] | |
Schedule I - Condensed Financial Information of Registrant | SOHU.COM INC. CONDENSED BALANCE SHEETS (In thousands) As of December 31, 2014 2015 ASSETS Current assets: Cash and cash equivalents $ 23,189 $ 16,096 Prepaid and other current assets 1,186 8,320 Due from subsidiaries and variable interest entities 3,806 3,806 Total current assets 28,181 28,222 Interests in subsidiaries and variable interest entities 1,176,914 1,232,327 Total assets $ 1,205,095 $ 1,260,549 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued liabilities $ 3,434 $ 19,527 Total current liabilities 3,434 19,527 Shareholders’ equity: Common stock: $0.001 par value per share (75,400 shares authorized; 38,507 shares and 38,653 shares, respectively, issued and outstanding as of December 31, 2014 and 2015) 44 45 Additional paid-in capital 650,148 798,357 Treasury stock (5,889 shares as of both December 31, 2014 and 2015) (143,858 ) (143,858 ) Accumulated other comprehensive income 109,402 50,151 Retained earnings 585,925 536,327 Total shareholders’ equity 1,201,661 1,241,022 Total liabilities and shareholders’ equity $ 1,205,095 $ 1,260,549 SOHU.COM INC. CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) Year Ended December 31, 2013 2014 2015 Revenues $ 0 $ 0 $ 0 Cost of revenues 0 0 0 Gross profit 0 0 0 Operating expenses: General and administrative 10,747 7,829 22,091 Operating loss (10,747 ) (7,829 ) (22,091 ) Equity in profit /(loss) of subsidiaries and variable interest entities 90,676 (129,324 ) (4,430 ) Other expense 0 (28 ) (12 ) Interest income 36 76 95 Income /(loss) before income tax expense 79,965 (137,105 ) (26,438 ) Income tax expense 12,840 1,805 11,249 Net income /(loss) 67,125 (138,910 ) (37,687 ) Other comprehensive income /(loss) 36,763 (6,903 ) (59,251 ) Comprehensive income /(loss) $ 103,888 $ (145,813 ) $ (96,938 ) SOHU.COM INC. CONDENSED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2013 2014 2015 Cash flows from operating activities: Net income /(loss) $ 67,125 $ (138,910 ) $ (37,687 ) Adjustments to reconcile net income to net cash used in operating activities: Investment income from subsidiaries and variable interest entities (90,676 ) 129,324 4,430 Share-based compensation expense 886 1,120 15,393 Changes in current assets and liabilities: Prepaid and other current assets 206 (110 ) (71 ) Taxes payable 2,771 (510 ) 811 Accrued liabilities 574 (3,996 ) 7,905 Net cash used in operating activities (19,114 ) (13,082 ) (9,219 ) Cash flows from investing activities: Dividend received 30,000 0 0 Net cash provided by investing activities 30,000 0 0 Cash flows from financing activities: Issuance of common stock 1,915 612 2,126 Net cash provided by financing activities 1,915 612 2,126 Net increase /(decrease) in cash and cash equivalents 12,801 (12,470 ) (7,093 ) Cash and cash equivalents at beginning of year 22,858 35,659 23,189 Cash and cash equivalents at end of year $ 35,659 $ 23,189 $ 16,096 NOTES TO SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF SOHU.COM INC. 1. The condensed financial statements of Sohu.com Inc. (the “Company”) have been prepared in accordance with U.S. GAAP. 2. The Company records its investment in subsidiaries under the equity method. Such investment and long-term loans to subsidiaries are presented on the balance sheets as interests in subsidiaries and consolidated VIEs and the profit of the subsidiaries is presented as equity in profit of subsidiaries and consolidated VIEs on the statements of comprehensive income. For VIEs where the Company is the primary beneficiary, the amount of the Company’s investment is included on the balance sheets as interests in subsidiaries and consolidated VIEs, and the profit or loss of the subsidiaries and consolidated VIEs is included in equity in profit of subsidiaries and consolidated VIEs on the statements of comprehensive income. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in U.S. have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the Consolidated Financial Statements of the Company. 3. As of December 31, 2015 and 2014, there were no material contingencies, significant provisions of long-term obligations, or mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company, except for those which have been separately disclosed in the Consolidated Financial Statements, if any. 4. On February 21, 2013, Sohu.com Limited distributed a $30 million cash dividend to Sohu.com Inc. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Polices) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Accounting Standards | Accounting Standards The consolidated financial statements have been prepared on a historical cost basis to reflect the financial position and results of operations of the Sohu Group in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Use of Estimates | Use of Estimates The preparation of these financial statements requires the Sohu Group to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going basis, the Group evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Identified below are the accounting policies that reflect the GroupÂ’s more significant estimates and judgments, and those that the Group believes are the most critical to fully understanding and evaluating its consolidated financial statements. |
Basis of Consolidation and Recognition of Noncontrolling Interest | Basis of Consolidation and Recognition of Noncontrolling Interest The consolidated financial statements include the accounts of Sohu.com Inc. and its wholly-owned and majority-owned subsidiaries and consolidated VIEs. All intercompany transactions are eliminated. VIE Consolidation The Sohu Group’s VIEs are wholly or partially owned by certain employees of the Group as nominee shareholders. For consolidated VIEs, management made evaluations of the relationships between the Sohu Group and the VIEs and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluation, management also took into account the fact that, as a result of such contractual arrangements, the Group controls the shareholders’ voting interests in these VIEs. As a result of such evaluation, management concluded that the Sohu Group is the primary beneficiary of its consolidated VIEs. Noncontrolling Interest Recognition Noncontrolling interests are recognized to reflect the portion of the equity of majority-owned subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholders. The primary majority-owned subsidiaries and VIEs of the Sohu Group which are consolidated in the Group’s consolidated financial statements with noncontrolling interest recognized are Sogou and Changyou. Noncontrolling Interest for Sogou Since Sohu.com Inc. controls the election of the Board of Directors of Sogou, Sohu.com Inc. is Sogou’s controlling shareholder. Therefore, Sogou’s financial results have been consolidated with those of Sohu.com Inc. for all periods presented. To reflect the economic interest in Sogou held by shareholders other than Sohu.com Inc. (the “Sogou noncontrolling shareholders”), Sogou’s net income /(loss) attributable to the Sogou noncontrolling shareholders is recorded as noncontrolling interest in the Sohu Group’s consolidated statements of comprehensive income. Sogou’s cumulative results of operations attributable to the Sogou noncontrolling shareholders, along with changes in shareholders’ equity /(deficit) and adjustment for share-based compensation expense in relation to those share-based awards which are unvested and vested but not yet settled and the Sogou noncontrolling shareholders’ investments in Sogou Preferred Shares and Ordinary Shares are accounted for as a noncontrolling interest classified as permanent equity in the Sohu Group’s consolidated balance sheets, as the Sohu Group has the right to reject a redemption requested by the noncontrolling interest. These treatments are based on the terms governing the investment, and on the terms of the classes of Sogou shares held, by the noncontrolling shareholders in Sogou. By virtue of these terms, Sogou’s losses have been and will be allocated in the following order: (i) net losses were allocated to holders of Sogou Class A Ordinary Shares and the holder of Sogou Class B Ordinary Shares until their basis in Sogou decreased to zero; (ii) additional net losses were allocated to holders of Sogou Series A Preferred Shares until their basis in Sogou decreased to zero; (iii) additional net losses will be allocated to the holder of Sogou Series B Preferred Shares until its basis in Sogou decreases to zero; and (iv) further net losses will be allocated between Sohu.com Inc. and noncontrolling shareholders based on their shareholding percentage in Sogou. Net income from Sogou has been, and future net income from Sogou will be, allocated in the following order: (i) net income will be allocated between Sohu.com Inc. and noncontrolling shareholders based on their shareholding percentage in Sogou until their basis in Sogou increases to zero; (ii) additional net income will be allocated to the holder of Sogou Series B Preferred Shares to bring its basis back; (iii) additional net income will be allocated to holders of Sogou Series A Preferred Shares to bring their basis back; (iv) further net income will be allocated to holders of Sogou Class A Ordinary Shares and the holder of Sogou Class B Ordinary Shares to bring their basis back; and (v) further net income will be allocated between Sohu.com Inc. and noncontrolling shareholders based on their shareholding percentage in Sogou. Noncontrolling Interest for Changyou As Sohu.com Inc. is Changyou’s controlling shareholder, Changyou’s financial results have been consolidated with those of Sohu.com Inc. for all periods presented. To reflect the economic interest in Changyou held by shareholders other than Sohu.com Inc. (the “Changyou noncontrolling shareholders”), Changyou’s net income /(loss) attributable to the Changyou noncontrolling shareholders is recorded as noncontrolling interest in the Sohu Group’s consolidated statements of comprehensive income, based on their share of the economic interest in Changyou. Changyou’s cumulative results of operations attributable to the Changyou noncontrolling shareholders, along with changes in shareholders’ equity, adjustment for share-based compensation expense in relation to those share-based awards which are unvested and vested but not yet settled and adjustment for changes in Sohu.com Inc.’s ownership in Changyou, are recorded as noncontrolling interest in the Sohu Group’s consolidated balance sheets. |
Segment Reporting | Segment Reporting The Sohu Group’s segments are business units that offer different services and are reviewed separately by the chief operating decision maker (the “CODM”), or the decision making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM is Sohu.com Inc.’s Chief Executive Officer. |
Revenue Recognition | Revenue Recognition The Sohu Group recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. The recognition of revenues involves certain management judgments. The amount and timing of the revenues could be materially different for any period if management made different judgments or utilized different estimates. Barter trade transactions in which physical goods or services (other than advertising services) are received in exchange for advertising services are recorded based on the fair values of the goods and services received. For online advertising-for-online advertising barter transactions, no revenue or expense is recognized because the fair value of neither the advertising surrendered nor the advertising received is determinable. Online Advertising Revenues Online advertising revenues include revenues from brand advertising services as well as search and search-related services. The Group recognizes revenue for the amount of fees it receives from its advertisers, after deducting agent rebates and net of value-added tax (“VAT”) and related surcharges. Brand Advertising Revenues Business Model Through PCs and mobile devices, the Group provides advertisement placements to its advertisers on different Internet platforms and in different formats, which include banners, links, logos, buttons, full screen, pre-roll, mid-roll, post-roll video screens, pause video screens, loading page ads, news feed ads and in-feed video infomercial ads. Currently the brand advertising business has four main types of pricing models, consisting of the Fixed Price model, the Cost Per Impression (“CPM”) model, the E-commerce model, and the Cost Per click (“CPC”) model. Fixed Price model Under the Fixed Price model, a contract is signed to establish a fixed price for the advertising services to be provided. CPM model Under the CPM model, the unit price for each qualifying display is fixed, but there is no overall fixed price for the advertising services stated in the contract with the advertiser. A qualifying display is defined as the appearance of an advertisement, where the advertisement meets criteria specified in the contract. Advertising fees are charged to the advertisers based on the unit prices and the number of qualifying displays. E-commerce model The E-commerce model is used by Focus. Under this model, revenues are generated mainly from sales of membership cards which allow potential home buyers to purchase specified properties from real estate developers at a discount greater than the price that Focus charges for the card. Membership fees are refundable until the potential home buyer uses the discounts to purchase properties. Focus recognizes such revenues upon obtaining confirmation that the membership card has been redeemed to purchase a property. CPC model Under the CPC model, there is no overall fixed price for advertising services stated in the contract with the advertiser. The Group charges advertisers on a per-click basis when the users click on the advertisements. The unit price for each click is fixed or auction-based. Revenue Recognition For brand advertising revenue recognition, prior to entering into contracts, the Sohu Group makes a credit assessment of the advertisers. For contracts for which collectability is determined to be reasonably assured, the Sohu Group recognizes revenue when all revenue recognition criteria are met. In other cases, the Sohu Group only recognizes revenue when the cash is received and all other revenue recognition criteria are met. In accordance with ASU No. 2009-13 Search and Search-related Revenues Search and search-related services include primarily pay-for-click services, as well as online marketing services on Web directories operated by Sogou. Pay-for-click Services Pay-for-click services are services that enable advertisers’ promotional links to be displayed on Sogou search result pages and Sogou Website Alliance members’ Websites where the links are relevant to the subject and content of such Web pages. For pay-for-click services, the Sohu Group introduces Internet users to its advertisers through its auction-based pay-for-click systems and charges advertisers on a per-click basis when the users click on the displayed links. Revenue for pay-for-click services is recognized on a per-click basis when the users click on the displayed links. Online Marketing Services on Web Directories Operated by Sogou Online marketing services on Web directories operated by Sogou mainly consist of displaying advertisers’ Website links on the Web pages of Web directories. Revenue for online marketing services on Web directories operated by Sogou is normally recognized on a straight-line basis over the contract period, provided the Sohu Group’s obligations under the contract have been met and all revenue recognition criteria have been met. Both pay-for-click services and online marketing services on Web directories operated by Sogou expand distribution of advertisers’ Website links or advertisements by leveraging traffic on Sogou Website Alliance members’ Websites. The Group recognizes gross revenue for the amount of fees it receives from advertisers, as the Group has the primary responsibility for fulfillment and acceptability. Payments made to Sogou Website Alliance members are included in cost of search and search-related revenues as traffic acquisition costs. The Group pays Sogou Website Alliance members based on either revenue-sharing arrangements, under which it pays a percentage of pay-for-click revenues generated from clicks by users of their properties, or on a pre-agreed unit price. Online Game Revenues Changyou’s online game business offers to game players PC games, mobile games and Web games. All of Changyou’s games are operated under the item-based revenue model, where the basic game play functions are free of charge and players are charged for purchases of in-game virtual items, including those with a predetermined expiration time and perpetual virtual items. Revenues that Changyou generates from self-operated and licensed out online games are included in online game revenues. Self-Operated Games Changyou is the primary obligor of its self-operated games. Changyou hosts the games on its own servers and is responsible for the sale and marketing of the games as well as customer service. Accordingly, revenues are recorded gross of revenue sharing-payments to third-party developers and/or mobile app stores, but are net of business tax and discounts to game card distributors where applicable. Changyou obtains revenues from the sale of in-game virtual items. Revenues are recognized over the estimated lives of the virtual items purchased by game players or as the virtual items are consumed. If different assumptions were used in deriving the estimated lives of the virtual items, the timing of the recording of the revenues would be impacted. PC Games Proceeds from the self-operation of PC games are collected from players and third-party game card distributors through sales of Changyou’s game points on its online payment platform and prepaid game cards. Self-operated PC games are either developed in house or licensed from third-party developers. For licensed PC games, Changyou remits a pre-agreed percentage of the proceeds to the third-party developers, and keeps the balance pursuant to revenue-sharing agreements. Such revenue-sharing amounts paid to third-party developers are recorded in Changyou’s cost of revenues. Mobile Games For self-operated mobile games, Changyou sells game points to its game players via third-party mobile application stores. The mobile application stores in turn pay Changyou proceeds after deducting their share of pre-agreed revenue-sharing amounts. Self-operated mobile games are either developed in house or licensed from or jointly developed with third-party developers. For licensed and jointly developed mobile games, Changyou remits a pre-agreed percentage of the proceeds to the third-party developers, and keeps the balance pursuant to revenue-sharing agreements. Such revenue-sharing amounts paid to mobile application stores and third-party developers are recorded in Changyou’s cost of revenues. Web Games Proceeds from self-operated Web games are collected from players through the sale of game points. Licensed Out Games Changyou also authorizes third-parties to operate its online games. Licensed out games include PC games, mobile games and Web games developed in house and mobile games jointly developed with third-party developers. Changyou receives monthly revenue-based royalty payments from all the third-party licensee operators. Changyou receives additional up-front license fees from certain third-party licensee operators who are entitled to an exclusive right to operate Changyou’s games in specified geographic areas. Since Changyou is obligated to provide post-sale services, the initial license fees are recognized as revenue ratably over the license period, and the monthly revenue-based royalty payments are recognized when relevant services are delivered, provided that collectability is reasonably assured. Changyou views the third-party licensee operators as Changyou’s customers and recognizes revenues on a net basis, as Changyou does not have the primary responsibility for fulfillment and acceptability of the game services. Changyou remits to the third-party developers a pre-agreed percentage of revenues from jointly developed and licensed out mobile games, and recognizes revenues on a net basis. Others Revenues Sohu Sohu also engages in the others business, which includes the filming business, mobile-related services, sub-licensing of purchased video content to third parties, and paid subscription services. Revenues generated by Sohu from the others business are classified as others revenues in the Sohu Group’s consolidated statements of comprehensive income. Sogou Others revenues attributable to Sogou are primarily IVAS revenues derived from the operation of Web games and mobile games of third-party developers, as well as other services and products that Sogou provides to users. Changyou Others revenues attributable to Changyou are primarily generated from its platform channel business and its others business. In its platform channel business, Changyou provides IVAS through its operation of software applications for PCs and mobile devices, such as the Dolphin Browser and RaidCall. In its others business, Changyou provides clients advertising placements in slots that are shown in theatres before the screening of movies. When all the recognition criteria are met, revenues from cinema advertising are recognized based on a percentage of the advertising slots actually delivered or on a straight-line basis over the contract period. |
Cost of Revenues | Cost of Revenues Cost of Online Advertising Revenues Cost of online advertising revenues includes cost of revenues from brand advertising services as well as cost of search and search-related services. Cost of Brand Advertising Revenues Cost of brand advertising revenues mainly consists of content and license costs, bandwidth leasing costs, salary and benefits expenses, and depreciation expenses. Cost of Search and Search-related Revenues Cost of search and search-related revenues mainly consists of traffic acquisition costs, bandwidth leasing costs, depreciation expenses and salary and benefits expenses. Traffic acquisition costs represent payments made to Sogou Website Alliance members. The Sohu Group pays Sogou Website Alliance members based either on revenue-sharing arrangements or on a pre-agreed unit price. Under the revenue-sharing arrangements, the Group pays a percentage of pay-for-click revenues generated from clicks by users of the Website Alliance membersÂ’ properties. Cost of Online Game Revenues Cost of online game revenues mainly consists of revenue-sharing payments, salary and benefits expense, bandwidth leasing costs, PRC business tax and value-added tax, which primarily arise from the revenues that AmazGame and Gamespace derive from their contractual arrangements with Gamease and Guanyou Gamespace, amortization of licensing fees, depreciation expenses, and other direct costs. Cost of Revenues for Other Services Cost of revenues for other services mainly consists of payments to theaters and film production companies for pre-film screening advertisement slots, revenue-sharing payments related to the IVAS business, revenue-sharing payments paid to China mobile network operators and payments related to the filming business, which are composed primarily of revenue-sharing paid to producers and production costs paid to film production companies. |
Product Development Expenses | Product Development Expenses Product development expenses mainly consist of salary and benefits expenses, depreciation and amortization expenses, facilities expenses, content and license expenses and technical service fees. Product development expenses are incurred for the enhancement and maintenance of the Sohu GroupÂ’s Internet platforms as well as its products and services, including the development costs of online games prior to the establishment of technological feasibility and maintenance costs after the online games are available for marketing. |
Sales and Marketing Expenses | Sales and Marketing Expenses Sales and marketing expenses mainly consist of advertising and promotional expenses, salary and benefits expense, travel expenses, and facility expenses. Advertising and promotional expenses generally represent the expenses of promotions to create or stimulate a positive image of the Sohu Group or a desire to subscribe for the GroupÂ’s products and services. Advertising and promotional expenses are expensed as incurred. |
General and Administrative Expenses | General and Administrative Expenses General and administrative expenses mainly consist of salary and benefits expenses, professional service fees, share-based compensation expense, facility expenses, depreciation and amortization expenses, and travel expenses. |
Share-based Compensation Expense | Share-based Compensation Expense Sohu (excluding Fox Video Limited), Sogou, Changyou, and Fox Video Limited (“Sohu Video”) have incentive plans, and prior to June 28, 2013 7Road had an incentive plan, for the granting of share-based awards, including common stock or ordinary shares, share options, restricted shares and restricted share units, to members of the boards of directors, management and other key employees. For share-based awards for which a grant date has occurred, share-based compensation expense is recognized as costs and expenses in the consolidated statements of comprehensive income based on the fair value of the related share-based awards on their grant dates. For share-based awards for which the service inception date precedes the grant date, share-based compensation expense is recognized as costs and expenses in the consolidated statements of comprehensive income beginning on the service inception date and is re-measured on each subsequent reporting date before the grant date, based on the estimated fair value of the related share-based awards. Share-based compensation expense is charged to the shareholders’ equity or noncontrolling interest section in the consolidated balance sheets. The assumptions used in share-based compensation expense recognition represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. If factors change or different assumptions are used, the Group’s share-based compensation expense could be materially different for any period. Moreover, the estimates of fair value are not intended to predict actual future events or the value that ultimately will be realized by employees who receive equity awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Group for accounting purposes. Sohu (excluding Sohu Video), Sogou, and Changyou Share-based Awards Sohu (excluding Sohu Video) Share-based Awards In determining the fair value of share options granted by Sohu (excluding Sohu Video) as share-based awards before 2006, the Black-Scholes valuation model was applied. In determining the fair value of restricted share units granted, the public market price of the underlying shares on the grant dates was applied. Options for the purchase of 1,068,000 shares of Sohu common stock contractually granted on February 7, 2015 are subject to vesting in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and certain subjective performance targets. For purposes of ASC 718-10-25 ASC 718-10-55 Sogou Share-based Awards In determining the fair value of share options granted by Sogou as share-based awards, the income approach /discounted cash flow method with a discount for lack of marketability was applied, given that the shares underlying the awards were not publicly traded at the time of grant. Certain persons who became Sogou employees when Tencent’s Soso search-related businesses were transferred to Sogou on September 16, 2013 had been granted restricted share units under Tencent’s share award arrangements prior to the transfer of the businesses to Sogou. These Tencent restricted share units will continue to vest under the original Tencent share award arrangements provided the transferred employees continue to be employed by Sogou during the requisite service period. After the transfer of the Soso search-related businesses to Sogou, Sogou applied the guidance in ASC 505-50 Changyou Share-based Awards In determining the fair value of ordinary shares and restricted share units granted by Changyou as share-based awards in 2008, the income approach /discounted cash flow method with a discount for lack of marketability was applied, given that the shares underlying the awards were not publicly traded at the time of grant. In determining the fair value of restricted share units granted in 2009 before Changyou’s initial public offering, the fair value of the underlying shares was determined based on Changyou’s offering price for its initial public offering. In determining the fair value of restricted share units granted after Changyou’s initial public offering, the public market price of the underlying shares on the grant dates was applied. Options for the purchase of 2,400,000 Changyou ordinary shares that were converted to options from restricted share units on February 16, 2015 and options contractually granted on June 1, 2015 for the purchase of 1,998,000 Changyou ordinary shares awards are subject to vesting in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and certain subjective performance targets. For purposes of ASC 718-10-25 ASC 718-10-55 Compensation Expense Recognition For share options, restricted shares and restricted share units granted with respect to Sohu (excluding Sohu Video) shares and Changyou shares, compensation expense is recognized on an accelerated basis over the requisite service period. For share options granted with respect to Sogou shares, compensation expense is recognized on a straight-line basis over the estimated period during which the service period requirement and performance target will be met. For Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, compensation expense is recognized by Sogou on an accelerated basis over the requisite service period, and the fair value of the share-based compensation is re-measured at each reporting date until a measurement date occurs. The number of share-based awards for which the service is not expected to be rendered over the requisite period is estimated, and no compensation expense is recorded for the number of awards so estimated. Sohu Video Share-based Awards On January 4, 2012, Sohu Video, the holding entity of Sohu’s video division, adopted a 2011 Share Incentive Plan (the “Video 2011 Share Incentive Plan”) which provides for the issuance of up to 25,000,000 ordinary shares of Sohu Video (representing approximately 10% of the outstanding ordinary shares of Sohu Video on a fully-diluted basis) to management and key employees of the video division and to Sohu management. As of December 31, 2015, grants of options for the purchase of 16,368,200 ordinary shares of Sohu Video had been contractually made, of which options for the purchase of 4,972,800 ordinary shares were vested. For purposes of ASC 718-10-25 ASC 718-10-55 7Road Share-based Awards On July 10, 2012, 7Road adopted the 7Road 2012 Share Incentive Plan. On June 28, 2013, 7Road’s Board of Directors approved the cancellation of this incentive plan. 7Road concurrently offered to a total of 42 7Road employees holding an aggregate of 2,223,750 restricted share units which had been granted under this incentive plan the right to exchange their restricted share units for, at each employee’s election, in each case subject to the employee’s continued employment by 7Road, either (i) Scheme I: the right to a cash payment of up to an aggregate of $2.90 per restricted share unit exchanged, vesting and payable at the rate of 40%, 30% and 30%, respectively, on the first, second and third anniversaries of July 18, 2012, which is the date when the surrendered restricted share units were granted under the 7Road 2012 Share Incentive Plan, or (ii) Scheme II: the right to receive an annual cash bonus, over a seven-year period commencing July 1, 2013, based on the adjusted annual cumulative net income of 7Road. As of June 28, 2013, all restricted share units held by these 42 7Road employees had been included in this exchange program. In the third quarter of 2013, 7Road granted to an additional 48 7Road employees the right to receive an annual cash bonus under Scheme II with the same terms as described above. On August 17, 2015, Changyou completed the sale of 7Road’s operating company Shenzhen 7Road. Compensation expense recognized for the years ended December 31, 2013, 2014 and 2015 was $3.3 million, $0.8 million and $0.1 million, respectively, for Scheme I and $0.4 million, $0.3 million and nil, respectively, for Scheme II. As a result of the sale, there will be no additional compensation expense recognized for 7Road. |
Taxation | Taxation Income Taxes Income taxes are accounted for using an asset and liability approach which requires the recognition of income taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Group’s financial statements or tax returns. Deferred income taxes are determined based on the differences between the accounting basis and the tax basis of assets and liabilities and are measured using the currently enacted tax rates and laws. Deferred tax assets are reduced by a valuation allowance, if based on available evidence, it is considered that it is more likely than not that some portion of or all of the deferred tax assets will not be realized. In making such determination, the Group considers factors including future reversals of existing taxable temporary differences, future profitability, and tax planning strategies. If events were to occur in the future that would allow the Group to realize more of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the deferred tax assets that would increase income for the period when those events occurred. If events were to occur in the future that would require the Group to realize less of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the valuation allowance against deferred tax assets that would decrease income for the period when those events occurred. Significant management judgment is required in determining income tax expense and deferred tax assets and liabilities. The Group’s deferred tax assets relate to net operating losses and temporary differences between accounting basis and tax basis for its China-based subsidiaries and VIEs, which are subject to corporate income tax in the PRC under the PRC Corporate Income Tax Law (the “CIT Law”). PRC Withholding Tax on Dividends The CIT Law imposes a 10% withholding income tax on dividends distributed by foreign-invested enterprises in the PRC to their immediate holding companies outside Mainland China. A lower withholding tax rate may be applied if there is a tax treaty or other arrangement between Mainland China and the jurisdiction of the foreign holding company. A holding company in Hong Kong, for example, will be subject to a 5% withholding tax rate under an arrangement between the PRC and the Hong Kong Special Administrative Region on the “Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital”, if such holding company is considered a non-PRC resident enterprise and holds at least 25% of the equity interests in the PRC foreign invested enterprise distributing the dividends, subject to approval of the PRC local tax authority. However, if the Hong Kong holding company is not considered to be the beneficial owner of such dividends under applicable PRC tax regulations, such dividend will remain subject to a withholding tax rate of 10%. PRC Value Added Tax and Business Tax Revenues from brand advertising, from the search and search-related business, from Changyou’s Web games that were not developed in-house and from licensed mobile games, as well as revenues from mobile-related services, which are recorded as others revenues, are subject to VAT. To record VAT payable, the Group adopted the net presentation method, which presents the difference between the output VAT (at a rate of 6%) and available input VAT amount (at the rate applicable to the supplier). Online game revenues from the operation of PC games and self-developed mobile games are subject to a 5% PRC business tax (“Business Tax”). U.S. Corporate Income Tax Sohu.com Inc. is a Delaware corporation that is subject to U.S. corporate income tax on its taxable income at a rate of up to 35%. Subject to certain limitations, the Net Operating Losses (“NOLs”) of a corporation in the U.S. that are carried forward from prior years may be used to offset the corporation’s taxable income. As of the end of the 2012 taxable year, Sohu.com Inc. had no further NOLs available for offsetting any U.S. taxable income. To the extent that its U.S. taxable income is determined to be from sources outside of the U.S., such as Subpart F income or a dividend, subject to certain limitations, Sohu.com Inc. may be able to claim foreign tax credits to offset its U.S. income tax liabilities. Any remaining liabilities are accrued in the Company’s consolidated statements of comprehensive income and estimated tax payments are made when required by U.S. law. Uncertain Tax Positions The Sohu Group is subject to various taxes in different jurisdictions, primarily the U.S. and the PRC. Management reviews regularly the adequacy of the provisions for taxes as they relate to the Group’s income and transactions. In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step approach for tax position measurement and financial statement recognition. For 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 to be realized upon settlement. |
Net Income /(Loss) per Share | Net Income /(Loss) per Share Basic net income /(loss) per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income /(loss) per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares comprise shares issuable upon the exercise or settlement of share-based awards using the treasury stock method. The dilutive effect of share-based awards with performance requirements is not considered before the performance targets are actually met. 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, for purposes of calculating the numerator of diluted net income /(loss) per share, the net income /(loss) attributable to the Sohu Group is adjusted as follows. The adjustment will not be made if there is an anti-dilutive effect. (1) SogouÂ’s net income /(loss) attributable to Sohu.com Inc. is determined using the percentage that the weighted average number of Sogou shares held by Sohu.com Inc. represents of the weighted average number of Sogou Preferred Shares and Ordinary Shares, shares issuable upon the conversion of convertible preferred shares under the if-converted method, and shares issuable upon the exercise or settlement of share-based awards under the treasury stock method, and is not determined by allocating SogouÂ’s net income /(loss) to Sohu.com Inc. using the methodology for the calculation of net income /(loss) attributable to the Sogou noncontrolling shareholders. In the calculation of Sohu.com Inc.Â’s diluted net income /(loss) per share, assuming a dilutive effect, the percentage of the Sohu.com Inc.Â’s shareholding in Sogou was calculated by treating convertible preferred shares issued by Sogou as having been converted at the beginning of the period and unvested share options with the performance targets achieved as well as vested but unexercised share options as having been exercised during the period. The dilutive effect of share-based awards with a performance requirement was not considered before the performance targets were actually met. Assuming an anti-dilutive effect, all of these Sogou shares and share options are excluded from the calculation of Sohu.com Inc.Â’s diluted income /(loss) per share. As a result, SogouÂ’s net income /(loss) attributable to Sohu.com Inc. on a diluted basis equals the number used for the calculation of Sohu.com Inc.Â’s basic net income /(loss) per share. (2) ChangyouÂ’s net income /(loss) attributable to Sohu.com Inc. is determined using the percentage that the weighted average number of Changyou shares held by Sohu.com Inc. represents of the weighted average number of Changyou ordinary shares and shares issuable upon the exercise or settlement of share-based awards under the treasury stock method, and not by using the percentage held by Sohu.com Inc. of the total economic interest in Changyou, which is used for the calculation of basic net income per share. In the calculation of Sohu.com Inc.Â’s diluted net income /(loss) per share, assuming a dilutive effect, all of ChangyouÂ’s existing unvested restricted share units, and vested restricted share units that have not yet been settled, are treated as vested and settled by Changyou under the treasury stock method, causing the percentage of the weighted average number of shares held by Sohu.com Inc. in Changyou to decrease. As a result, ChangyouÂ’s net income /(loss) attributable to Sohu.com Inc. on a diluted basis decreased accordingly. Assuming an anti-dilutive effect, all of these Changyou restricted share units are excluded from the calculation of Sohu.com Inc.Â’s diluted net income /(loss) per share. As a result, ChangyouÂ’s net income /(loss) attributable to Sohu.com Inc. on a diluted basis equals the number used for the calculation of Sohu.com Inc.Â’s basic net income /(loss) per share. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is: Level 1 - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - include other inputs that are directly or indirectly observable in the market place. Level 3 - unobservable inputs which are supported by little or no market activity. The Sohu GroupÂ’s financial instruments consist mainly of cash equivalents, restricted time deposits, short-term investments, accounts receivable, prepaid and other current assets, available-for-sale securities under long-term investments, accounts payable, accrued liabilities, receipts in advance and deferred revenue, short-term bank loans, other short-term liabilities, long-term accounts payable and long-term bank loans. |
Cash Equivalents | Cash Equivalents The Sohu GroupÂ’s cash equivalents mainly consist of time deposits and money market funds with original maturities of three months or less. |
Restricted time deposits | Restricted time deposits Restricted time deposits are valued based on the prevailing interest rates in the market using the discounted cash flow method. |
Short-term Investments | Short-term Investments For investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Sohu Group elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. |
Accounts Receivable, Net | Accounts Receivable, Net The carrying value of accounts receivable is reduced by an allowance that reflects the Sohu GroupÂ’s best estimate of the amounts that will not be collected. The Group makes estimations of the collectability of accounts receivable. Many factors are considered in estimating the general allowance, including reviewing delinquent accounts receivable, performing an aging analysis and a customer credit analysis, and analyzing historical bad debt records and current economic trends. Additional allowance for specific doubtful accounts might be made if the financial conditions of the GroupÂ’s customers or the China mobile network operators deteriorate or the China mobile network operators are unable to collect fees from their end customers, resulting in their inability to make payments due to the Group. |
Available-for-Sale Securities | Available-for-Sale Securities Investments in debt securities and equity securities that have readily determinable fair values not classified as trading securities or as held-to-maturity securities are classified as available-for-sale securities and are included in long-term investments. Available-for-sale securities are reported at fair value, with unrealized gains or losses recorded in other comprehensive income or losses in the consolidated balance sheets. Realized gains or losses are included in the consolidated statements of comprehensive income during the period in which the gain or loss is realized. An impairment loss on the available-for-sale securities is recognized in the consolidated statements of comprehensive income when the decline in value is determined to be other-than-temporary. |
Equity Investments | Equity Investments Investments in entities are recorded as equity investments under long-term investments. For entities over which the Group does not have significant influence, the cost method is applied, as there is no readily determinable fair value; for entities over which the Group can exercise significant influence but does not own a majority equity interest or control, the equity method is applied. For cost method investments, the Group carries the investment at historical cost after the date of investment. For equity method investments, the Group adjusts the carrying amount of an investment and recognizes investment income or loss for the GroupÂ’s share of the earnings or loss of the investee after the date of investment. |
Long-Lived Assets | Long-Lived Assets Long-lived assets consist primarily of fixed assets and intangible assets. Fixed Assets Fixed assets mainly comprise office buildings, computer equipment and hardware, leasehold improvements, building improvements, office furniture and vehicles. Fixed assets are recorded at cost less accumulated depreciation with no residual value. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Fixed Assets Estimated Useful Lives (years) Office buildings 36-47 Leasehold improvements Lesser of term of the lease or the estimated useful lives of the assets Building improvements 10 Vehicles 4-10 Office furniture 5 Computer equipment and hardware 2-5 Expenditure for maintenance and repairs is expensed as incurred. The gain or loss on the disposal of fixed assets is the difference between the net sales proceeds and the lower of the carrying value or fair value less cost to sell the relevant assets and is recognized in operating expenses in the consolidated statements of comprehensive income. Intangible Assets Intangible assets mainly comprise video content, domain names and trademarks, operating rights for licensed games, computer software, cinema advertising slot rights, and developed technologies. Intangible assets are recorded at cost less accumulated amortization with no residual value. Amortization of intangible assets other than purchased video content is computed using the straight-line method over their estimated useful lives. The estimated useful lives of the GroupÂ’s intangible assets are listed below: Intangible Assets Estimated Useful Lives (years) Domain names and trademarks 4-30 Developed technologies 3-10 Computer software 1-5 Video content 4 months to 2 years, or over the applicable licensing period Cinema advertising slot rights over the contract terms Operating rights for licensed games over the contract terms Video Content Video content consists primarily of purchased video content and self-developed video content. Purchased video content is recognized as intangible assets. Amortization of purchased video content is computed based on the trend in viewership accumulation. For self-developed video content, the production costs incurred in excess of the amount of revenue contracted are expensed as incurred, instead of being recorded as intangible assets. Sohu Video enters into nonmonetary transactions to exchange online broadcasting rights for purchased video content with other online video broadcasting companies. Under ASC 845 Impairment of Long-lived Assets In accordance with ASC 360-10-35 |
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 Sohu GroupÂ’s acquisitions of interests in its subsidiaries and consolidated VIEs. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports in its financial statements provisional amounts for the items for which the accounting is incomplete. If a measurement period adjustment is identified, the Group recognizes the adjustment as part of the acquisition accounting. The Sohu Group increases or decreases the provisional amounts of identifiable assets or liabilities by means of increases or decreases in goodwill for measurement period adjustments. In accordance with ASC 350 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. |
Comprehensive Income | Comprehensive Income Comprehensive income 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. Accumulated other comprehensive income, as presented on the Sohu GroupÂ’s consolidated balance sheets, includes a cumulative foreign currency translation adjustment. |
Functional Currency and Foreign Currency Translation | Functional Currency and Foreign Currency Translation An entityÂ’s functional currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily generates and expends cash. ManagementÂ’s judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. The functional currency of Sohu.com Inc. is the U.S. dollar. The functional currency of the Sohu GroupÂ’s subsidiaries in the U.S., the Cayman Islands, the British Virgin Islands and Hong Kong is the U.S. dollar. The functional currencies of the Sohu GroupÂ’s subsidiaries and VIEs in other countries are the national currencies of those counties, rather than the U.S. dollar. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are re-measured at the applicable rates of exchange in effect at that date. Gains and losses resulting from foreign currency re-measurement are included in the consolidated statements of comprehensive income. Financial statements of entities with a functional currency other than the U.S. dollar are translated into U.S. dollars, which is the reporting currency. Assets and liabilities are translated at the current exchange rate in effect at the balance sheet date, and revenues and expenses are translated at the average exchange rates in effect during the reporting period. ShareholdersÂ’ equity accounts are translated using the historical exchange rates at the date the entry to shareholdersÂ’ equity was recorded, except for the change in retained earnings during the year, which is translated using the historical exchange rates used to translate each periodÂ’s income statement. Differences resulting from translating a foreign currency to the reporting currency are recorded in accumulated other comprehensive income in the consolidated statements of balance sheets. |
Effect of Recent Accounting Pronouncements | Effect of Recent Accounting Pronouncements On May 28, 2014, the FASB and IASB issued their long-awaited converged standard on the recognition of revenue from contracts with customers. The standard is intended to improve the financial reporting of revenue and improve comparability of the top line in financial statements globally. The FASB is amending the FASB Accounting Standards Codification Revenue from Contracts with Customers Revenue Recognition Revenue Recognition Construction-Type and Production-Type Contract In February 2015, the FASB issued Consolidation (Topic 810) Amendments to the Consolidation Analysis Subtopic 810-10, Consolidation Overall Amendments to FASB Interpretation No. 46(R) In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Estimated useful lives of fixed assets | Fixed Assets Estimated Useful Lives (years) Office buildings 36-47 Leasehold improvements Lesser of term of the lease or the estimated useful lives of the assets Building improvements 10 Vehicles 4-10 Office furniture 5 Computer equipment and hardware 2-5 |
Estimated useful lives of intangible assets | Intangible Assets Estimated Useful Lives (years) Domain names and trademarks 4-30 Developed technologies 3-10 Computer software 1-5 Video content 4 months to 2 years, or over the applicable licensing period Cinema advertising slot rights over the contract terms Operating rights for licensed games over the contract terms |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information [Abstract] | |
Segment operating information by segment | Year Ended December 31, 2013 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 460,444 $ 216,515 $ 737,875 $ (14,560 ) $ 1,400,274 Segment cost of revenues (244,696 ) (109,024 ) (126,336 ) 581 (479,475 ) Segment gross profit 215,748 107,491 611,539 (13,979 ) 920,799 SBC (2) in cost of revenues (425 ) (49 ) (101 ) 0 (575 ) Gross profit 215,323 107,442 611,438 (13,979 ) 920,224 Operating expenses: Product development (85,066 ) (67,714 ) (119,434 ) 729 (271,485 ) Sales and marketing (196,625 ) (39,399 ) (128,756 ) 14,199 (350,581 ) General and administrative (38,567 ) (9,573 ) (56,567 ) (116 ) (104,823 ) SBC (2) in operating expenses (2,831 ) (10,261 ) (1,173 ) 4,411 (9,854 ) Total operating expenses (323,089 ) (126,947 ) (305,930 ) 19,223 (736,743 ) Operating profit /(loss) (107,766 ) (19,505 ) 305,508 5,244 183,481 Other income (3) 168,420 2,713 3,613 (162,025 ) 12,721 Net interest income 6,979 1,230 19,620 0 27,829 Exchange difference (1,001 ) 277 (5,936 ) 0 (6,660 ) Income /(loss) before income tax expense 66,632 (15,285 ) 322,805 (156,781 ) 217,371 Income tax expense (14,033 ) (6 ) (36,383 ) 0 (50,422 ) Net income /(loss) $ 52,599 $ (15,291 ) $ 286,422 $ (156,781 ) $ 166,949 Note (1): The elimination for segment revenues mainly consists of revenues from marketing services provided by the brand advertising segment (banner advertisements, etc.) to the Changyou segment. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination for other income is primarily for the portion paid to Sohu of a special dividend paid by Sogou to holders of its Series A Preferred Shares. Year Ended December 31, 2014 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 546,262 $ 386,382 $ 755,266 $ (14,833 ) $ 1,673,077 Segment cost of revenues (320,035 ) (163,426 ) (201,710 ) 1,509 (683,662 ) Segment gross profit 226,227 222,956 553,556 (13,324 ) 989,415 SBC (2) in cost of revenues (728 ) (1,092 ) (152 ) 0 (1,972 ) Gross profit 225,499 221,864 553,404 (13,324 ) 987,443 Operating expenses: Product development (93,227 ) (102,329 ) (193,044 ) 4,297 (384,303 ) Sales and marketing (220,479 ) (73,932 ) (241,202 ) 14,744 (520,869 ) General and administrative (43,640 ) (13,446 ) (104,663 ) (733 ) (162,482 ) Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions 0 0 (52,282 ) 0 (52,282 ) SBC (2) in operating expenses (7,378 ) (62,950 ) (3,962 ) 1,820 (72,470 ) Total operating expenses (364,724 ) (252,657 ) (595,153 ) 20,128 (1,192,406 ) Operating loss (139,225 ) (30,793 ) (41,749 ) 6,804 (204,963 ) Other income 8,369 2,462 4,112 (4,984 ) 9,959 Net interest income 8,565 2,773 19,639 0 30,977 Exchange difference (325 ) (149 ) (668 ) 0 (1,142 ) Loss before income tax expense (122,616 ) (25,707 ) (18,666 ) 1,820 (165,169 ) Income tax expense (3,557 ) 0 (2,493 ) 0 (6,050 ) Net loss $ (126,173 ) $ (25,707 ) $ (21,159 ) $ 1,820 $ (171,219 ) Note (1): The elimination for segment revenues mainly consists of revenues from marketing services provided by the brand advertising segment (banner advertisements, etc.) to the Changyou segment. Note (2): “SBC” stands for share-based compensation expense. Year Ended December 31, 2015 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 590,471 $ 591,803 $ 761,636 $ (6,819 ) $ 1,937,091 Segment cost of revenues (393,564 ) (247,949 ) (216,727 ) 924 (857,316 ) Segment gross profit 196,907 343,854 544,909 (5,895 ) 1,079,775 SBC (2) in cost of revenues (1,381 ) (330 ) (37 ) 0 (1,748 ) Gross profit 195,526 343,524 544,872 (5,895 ) 1,078,027 Operating expenses: Product development (94,392 ) (124,210 ) (165,130 ) 4,932 (378,800 ) Sales and marketing (203,332 ) (93,055 ) (91,334 ) 6,845 (380,876 ) General and administrative (57,014 ) (14,422 ) (71,771 ) (656 ) (143,863 ) Goodwill impairment and impairment of intangible assets acquired as part of a business acquisition 0 0 (40,324 ) 0 (40,324 ) SBC (2) in operating expenses (26,743 ) (10,049 ) (14,988 ) 85 (51,695 ) Total operating expenses (381,481 ) (241,736 ) (383,547 ) 11,206 (995,558 ) Operating profit /(loss) (185,955 ) 101,788 161,325 5,311 82,469 Other income (3) 92,455 1,142 64,961 (84,032 ) 74,526 Net interest income 2,683 5,332 15,444 0 23,459 Exchange difference 1,716 667 2,954 0 5,337 Income /(loss) before income tax expense (89,101 ) 108,929 244,684 (78,721 ) 185,791 Income tax expense (13,451 ) (9,430 ) (54,055 ) 0 (76,936 ) Net income /(loss) $ (102,552 ) $ 99,499 $ 190,629 $ (78,721 ) $ 108,855 Note (1): The elimination for segment revenues and other income mainly consists of revenues from marketing services provided among the Sohu, Sogou and Changyou segments, and Sogou’s repurchase of Sogou shares from Sohu.com (Search) Limited. Note (2): “SBC” stands for share-based compensation expense. Note (3): In the third quarter of 2015, Sogou purchased from Sohu 24.0 million Series A Preferred Shares of Sogou for $78.8 million. Sohu recognized $78.8 million in other income, which was eliminated in the Group’s consolidated statements of comprehensive income. |
Segment assets information by segment | As of December 31, 2014 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 431,272 $ 224,273 $ 220,795 $ 0 $ 876,340 Accounts receivable, net 137,183 15,341 77,969 (92 ) 230,401 Fixed assets, net 252,255 44,686 243,837 0 540,778 Total assets (1) $ 1,159,403 $ 305,975 $ 1,547,965 $ (146,334 ) $ 2,867,009 Note (1): The elimination for segment assets mainly consists of elimination of long-term investments in subsidiaries and consolidated VIEs. As of December 31, 2015 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 430,804 $ 244,484 $ 569,917 $ 0 $ 1,245,205 Accounts receivable, net 176,759 28,986 67,959 (87 ) 273,617 Fixed assets, net 223,939 70,447 214,306 0 508,692 Total assets (1) $ 1,356,263 $ 387,875 $ 1,779,506 $ (481,450 ) $ 3,042,194 Note (1): The elimination for segment assets mainly consists of elimination of intracompany loans between the Sohu segment and the Changyou segment, and elimination of long-term investments in subsidiaries and consolidated VIEs. |
Share-based Compensation Expe36
Share-based Compensation Expense (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Expense [Abstract] | |
Share-based compensation expense recognized in costs and expenses | Year Ended December 31, 2013 2014 2015 Share-based compensation expense Cost of revenues $ 575 $ 1,973 $ 1,748 Product development expenses 4,638 24,982 19,344 Sales and marketing expenses 1,071 5,645 3,054 General and administrative expenses 4,145 41,843 29,297 $ 10,429 $ 74,443 $ 53,443 |
Share-based compensation expense recognized for share awards of Sohu (excluding Sohu Video), Sogou, Changyou and Sohu Video | Year Ended December 31, 2013 2014 2015 Share-based compensation expense For Sohu (excluding Sohu Video) share-based awards $ 3,799 $ 4,410 $ 27,811 For Sogou share-based awards (1) 5,435 61,918 10,310 For Changyou share-based awards 1,195 4,087 15,024 For Sohu Video share-based awards 0 4,028 298 $ 10,429 $ 74,443 $ 53,443 Note (1): Sogou share-based awards also include compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of Sogou Class A Ordinary Shares that Sogou repurchased in the second quarter of 2014. |
Other Income _(Expense) (Tables
Other Income /(Expense) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income /(Expense) [Abstract] | |
Other Income /(Expense) | Year Ended December 31, 2013 2014 2015 Investment income (1) $ 4,507 $ 2,039 $ 60,264 Government grant 4,959 3,618 2,839 Charitable donations (1,543 ) (683 ) (1,192 ) Change in fair value of short-term investments 2,451 3,137 9,374 Change in fair value of China Web put option 2,160 2,304 0 Others 187 (456 ) 3,241 $ 12,721 $ 9,959 $ 74,526 Note (1): The $60.3 million in investment income in 2015 primarily included a $55.1 million disposal gain recognized by Changyou for its sale of the 7Road business and certain Changyou subsidiaries and a $13.0 million disposal gain recognized by Sohu for its sale of an equity investment, offset by an $8.9 million investment loss from the GroupÂ’s other equity investments. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Components [Abstract] | |
Balance sheet components | As of December 31, 2014 2015 Cash and cash equivalents Cash $ 293,180 $ 517,973 Cash equivalents 583,160 727,232 $876,340 $1,245,205 Accounts receivable, net Accounts receivable $ 234,469 $ 277,593 Allowance for doubtful accounts: Balance at the beginning of year (6,801 ) (4,068 ) Additional provision for bad debt (2,029 ) (3,204 ) Write-offs 3,137 857 Cash collection 1,625 2,236 Exchange difference 0 203 Balance at the end of year (4,068 ) (3,976 ) $230,401 $273,617 Prepaid and other current assets Prepaid content and license $ 58,331 $ 57,910 Due from 7Road 0 20,579 Prepaid income tax 0 13,073 Matching loan due from a related party (1) 0 12,740 Prepaid rental deposit 11,260 10,231 Prepaid cost of revenue 7,875 8,458 Deferred tax assets 4,918 4,673 Employee advances 5,619 3,844 Receivables from third party payment platforms 0 3,673 Due from a related party 1,625 3,080 Prepaid office rental and facilities expenses 2,235 2,223 Prepaid advertising and promotion fees 1,148 1,905 Interest receivable 6,689 1,058 Prepaid film production fee 3,941 0 Others 13,063 15,443 $ 116,704 $ 158,890 Prepaid non-current assets Prepaid PRC income tax for the sale of assets associated with 17173.com by Sohu to Changyou $ 8,293 $ 6,067 Others 640 187 $ 8,933 $ 6,254 Other short-term liabilities Deposit received from membership card buyers $ $ 88,990 Contract deposits from advertisers 21,367 Matching loan due to a related party (1) 13,005 Consideration payable for acquisition 5,390 Early exercise of Sogou share options for trust arrangements 4,891 4,530 Accrued liabilities to suppliers 2,470 4,110 Taxes payable for exercise or settlement of share-based awards 2,382 2,382 Government grant 4,864 1,694 Accrued Business Tax arising from the sale of assets associated with 17173.com by Sohu to Changyou 1,669 1,647 Others 9,856 10,902 $ 105,644 $ 154,017 Receipts in advance and deferred revenue Receipts in advance relating to: - brand advertising business $ 23,328 $ 20,498 - search and search-related business 60,271 65,911 - online game business 18,198 20,244 - others business 449 0 Total receipts in advance 102,246 106,653 Deferred revenue 25,494 28,732 $ 127,740 $ 135,385 Note (1): During 2015, certain subsidiaries of Changyou and certain subsidiaries of SoEasy entered into a series of loan agreements, pursuant to which the subsidiaries of Changyou are entitled to draw down HK dollar-denominated loans from the SoEasy subsidiaries and the SoEasy subsidiaries are entitled to draw down equivalent RMB-denominated loans from the subsidiaries of Changyou, to facilitate each otherÂ’s business operations. All of the loans carry a fixed rate of interest equal to the current market interest rate. As of December 31, 2015, Changyou had drawn down from SoEasy loans in an aggregate principal amount of HKD100 million (approximately $12.9 million), which is recorded in other short-term liabilities, and SoEasy had drawn down from Changyou loans in an aggregate principal amount of RMB80 million (approximately $12.3 million), which is recorded in prepaid and other current assets . For the year ended December 31, 2015, interest income that Changyou earned from the RMB-denominated loan was $0.4 million and was recorded as prepaid and other current assets, and interest expense that Changyou accrued for the HK dollar-denominated loan was $0.1 million and was recorded as other short-term liabilities. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Financial instruments, measured at fair value | Fair value measurements at reporting date using Items As of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 583,160 $ 0 $ 583,160 $ 0 Restricted time deposits 426,748 0 426,748 0 Short-term investments 191,577 0 191,577 0 Available-for-sale equity securities 11,273 11,273 0 0 Total $ 1,212,758 $ 11,273 $ 1,201,485 $ 0 The following table sets forth financial instruments, measured at fair value by level within the fair value hierarchy, as of December 31, 2015 (in thousands): Fair value measurements at reporting date using Items As of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 727,232 $ 0 $ 727,232 $ 0 Restricted time deposits 363,979 0 363,979 0 Short-term investments 174,515 0 174,515 0 Available-for-sale equity securities 14,301 14,301 0 0 Total $ 1,280,027 $ 14,301 $ 1,265,726 $ 0 |
Assets measured at fair value on nonrecurring basis | Fair value measurements at reporting date using Items As of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Intangible assets, net $ 110,691 $ 0 $ 0 $ 110,691 20,168 Goodwill 303,426 0 0 303,426 33,801 $ 414,117 $ 0 $ 0 $ 414,117 53,969 Fair value measurements at reporting date using Items As of December 31, 2015 Quoted Prices (Level 1) Significant Other Significant Unobservable (Level 3) Total Intangible assets, net $ 55,415 $ 0 $ 0 $ 55,415 19,947 Goodwill 154,219 0 0 154,219 31,445 $ 209,634 $ 0 $ 0 $ 209,634 51,392 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fixed Assets [Abstract] | |
Fixed assets, net | As of December 31, 2014 2015 Fixed assets, net Office buildings $ 417,512 $ 393,938 Computer equipment and hardware 282,547 302,832 Leasehold and building improvements 55,792 49,703 Office furniture 11,608 10,784 Vehicles 5,093 4,930 Fixed assets, gross 772,552 762,187 Accumulated depreciation (231,774 ) (253,495 ) $ 540,778 $ 508,692 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets, Net [Abstract] | |
Finite-lived intangible assets by major class | As of December 31, 2014 Items Gross Carrying Accumulated Impairment Net Carrying Video content $ 150,318 $ (115,356 ) $ (12,454 ) $ 22,508 Cinema advertising slot rights 53,239 (37,360 ) 0 15,879 Developed technologies 49,545 (21,855 ) (10,751 ) 16,939 Domain names and trademarks 39,150 (8,675 ) (9,534 ) 20,941 Operating rights for licensed games 33,464 (12,694 ) (8,917 ) 11,853 Computer software 15,051 (9,428 ) (258 ) 5,365 Others 32,198 (7,485 ) (7,507 ) 17,206 Total $ 372,965 $ (212,853 ) $ (49,421 ) $ 110,691 As of December 31, 2015 Items Gross Accumulated Impairment Net Video content $ 226,832 $ (201,405 ) $ (11,129 ) $ 14,298 Domain names and trademarks 35,003 (9,458 ) (11,747 ) 13,798 Operating rights for licensed games 26,869 (9,517 ) (9,474 ) 7,878 Developed technologies 19,352 (3,393 ) (12,334 ) 3,625 Computer software 15,934 (11,173 ) 0 4,761 Cinema advertising slot rights 12,615 (8,721 ) 0 3,894 Others 27,760 (11,174 ) (9,425 ) 7,161 Total $ 364,365 $ (254,841 ) $ (54,109 ) $ 55,415 |
Expected amortization expense | For the year ending December 31, (in thousands) 2016 $ 27,925 2017 10,171 2018 5,288 2019 2,621 2020 1,263 Thereafter 8,147 Total expected amortization expense $ 55,415 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill [Abstract] | |
Carrying value of goodwill by segment | Sohu Sogou Changyou Total Balance as of December 31, 2013 Goodwill $ 58,042 $ 6,290 $ 185,452 $ 249,784 Accumulated impairment losses (35,788 ) 0 (5,201 ) (40,989 ) $ 22,254 $ 6,290 $ 180,251 $ 208,795 Transactions in 2014 Business acquisitions 15,866 0 113,040 128,906 Measurement period adjustment of goodwill for the acquisition of Soso search-related businesses from Tencent 0 42 0 42 Foreign currency translation adjustment 0 (23 ) (493 ) (516 ) Impairment loss 0 0 (33,801 ) (33,801 ) Balance as of December 31, 2014 $ 38,120 $ 6,309 $ 258,997 $ 303,426 Balance as of December 31, 2014 Goodwill $ 73,908 $ 6,309 $ 297,999 $ 378,216 Accumulated impairment losses (35,788 ) 0 (39,002 ) (74,790 ) $ 38,120 $ 6,309 $ 258,997 $ 303,426 Transactions in 2015 Goodwill associated with the acquisition of 7Road de-recognized upon the sale of the 7Road business 0 0 (109,735 ) (109,735 ) Impairment loss related to MoboTap 0 0 (29,569 ) (29,569 ) Goodwill associated with the acquisition of Doyo, transferred to held-for-sale assets and impaired 0 0 (7,352 ) (7,352 ) Foreign currency translation adjustment (928 ) (364 ) (1,259 ) (2,551 ) Balance as of December 31, 2015 $ 37,192 $ 5,945 $ 111,082 $ 154,219 Balance as of December 31, 2015 Goodwill 72,980 5,945 181,529 260,454 Accumulated impairment losses (35,788 ) 0 (70,447 ) (106,235 ) $ 37,192 $ 5,945 $ 111,082 $ 154,219 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Taxation [Abstract] | |
Components of income before income taxes | Year ended December 31, 2013 2014 2015 Income /(loss) before income tax expense Income /(loss) from China operations $ 270,817 $ (129,349 ) $ 171,636 Income /(loss) from non China operations (53,446 ) (35,820 ) 14,155 Total income /(loss) before income tax expense $ 217,371 $ (165,169 ) $ 185,791 Income tax expense applicable to China operations Current income tax expense $ 31,444 $ 23,295 $ 55,532 Deferred tax 4,088 (20,637 ) 8,735 Subtotal income tax expense applicable to China operations 35,532 2,658 64,267 Non China income tax expense 12,798 1,864 11,291 Non China withholding tax expense 2,092 1,528 1,378 Total income tax expense $ 50,422 $ 6,050 $ 76,936 |
Combined effects of the income tax exemption and reduction available | Year Ended December 31, 2013 2014 2015 Tax holiday effect $ 62,929 $ 186 $ 19,626 Basic net income per share effect 1.64 — 0.51 |
Reconciliation between the U.S. federal statutory rate and the Group's effective tax rate | Year Ended December 31, 2013 2014 2015 U.S. federal statutory rate: 35% 35% 35% Effect of tax holidays applicable to the subsidiaries and the consolidated VIEs (29% ) 0% (11% ) Tax differential from statutory rate applicable to the subsidiaries and the consolidated VIEs (16% ) (31% ) (13% ) Effect of withholding taxes 4% (3% ) 2% Changes in valuation allowance for deferred tax assets 28% (22% ) 31% Others 1% 17% (3% ) 23% (4% ) 41% |
Deferred tax assets and liabilities | As of December 31, 2014 2015 Deferred tax assets: Net operating loss from operations $ 120,586 $ 145,964 Accrued bonus and commissions 12,930 21,004 Intangible assets transfer 2,261 1,156 Share-based compensation 226 4,979 Others 2,714 2,321 Total deferred tax assets 138,717 175,424 Less: Valuation allowance (110,788 ) (146,930 ) Net deferred tax assets $ 27,929 $ 28,494 Deferred tax liabilities Withholding tax for Dividend $ (22,356 ) $ (24,884 ) Deferred U.S. tax 0 (12,450 ) Intangible assets from business acquisitions (3,472 ) (1,465 ) Others (3,945 ) (3,616 ) Total deferred tax liabilities $ (29,773 ) $ (42,415 ) |
Uncertain tax positions | As of December 31, 2013 2014 2015 Beginning balance $ 3,096 $ 24,369 $ 24,515 Increases /(decrease) related to prior year tax positions (154 ) 0 0 Increases related to current year tax positions 21,427 146 14,729 Ending balance $ 24,369 $ 24,515 $ 39,244 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments related to future payment arrangement | As of December 31, 2016 2017 2018 2019 2020 Thereafter Total Payments Purchase of content and services-video 96,730 18,347 15,383 0 0 0 130,460 Purchase of cinema advertisement slot rights 23,745 26,868 10,262 1,010 0 0 61,885 Purchase of bandwidth 40,622 4,385 2,351 102 0 0 47,460 Operating lease obligations (1) 20,472 11,432 4,392 917 0 0 37,213 Expenditures for operating rights of licensed games with technological feasibility 5,818 20,350 0 0 0 0 26,168 Purchase of content and services-others 13,089 2,081 23 0 0 0 15,193 Fees for rights to operate licensed games in development 3,038 150 0 0 0 0 3,188 Expenditures for rights to titles and characters of games in development 1,623 0 0 0 0 0 1,623 Others 8,373 374 56 1 0 0 8,804 Total payments required 213,510 83,987 32,467 2,030 0 0 331,994 Note (1): For the years ended December 31, 2015, 2014 and 2013, rental expense included in the operating lease was approximately $27.9 million, $34.6 million, and $29.5 million, respectively. |
VIEs (Tables)
VIEs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
VIEs [Abstract] | |
Financial information of consolidated VIEs | As of December 31, 2014 2015 ASSETS: Cash and cash equivalents $ 39,534 $ 131,270 Restricted time deposit 294 0 Accounts receivable, net 129,881 135,925 Prepaid and other current assets 23,827 101,951 Intercompany receivables due from the CompanyÂ’s subsidiaries 176,902 140,396 Total current assets 370,438 509,542 Fixed assets, net 12,597 7,362 Goodwill 154,774 36,351 Long-term investments, net 7,348 15,960 Intangible assets, net 39,726 18,266 Other non-current assets 71,767 12,057 Total assets $ 656,650 $ 599,538 LIABILITIES: Accounts payable $ 3,495 $ 23,757 Accrued and other short-term liabilities 78,051 79,012 Receipts in advance and deferred revenue 53,641 55,319 Other current liabilities 53,564 141,247 Intercompany payables due to the CompanyÂ’s subsidiaries 259,009 175,178 Total current liabilities 447,760 474,513 Other long-term liabilities 25,262 24,575 Total liabilities $ 473,022 $ 499,088 As of December 31, 2013 2014 2015 Net revenue $ 1,028,281 $ 1,063,655 $ 1,181,354 Net loss $ (32,919 ) $ (90,840 ) $ (78,722 ) For the table below, consolidated VIEs (including subsidiaries of VIEs) under the Sohu segment and the Sogou segment are classified as SohuÂ’s VIEs, and consolidated VIEs (including subsidiaries of VIEs) under the Changyou segment are classified as ChangyouÂ’s VIEs. Cash flows of SohuÂ’s VIEs Year ended December 31, 2013 2014 2015 Net cash provided by /(used in) operating activities $ (715 ) $ 29,344 $ 113,042 Net cash used in investing activities (926 ) (27,306 ) (16,579 ) Net cash provided by financing activities $ 1,476 $ 18,535 $ 2,855 Cash flows of ChangyouÂ’s VIEs Year ended December 31, 2013 2014 2015 Net cash provided by /(used in) operating activities $ 102,086 $ 39,827 $ (74,415 ) Net cash provided by /(used in) investing activities (53,925 ) (131,788 ) 71,687 Net cash used in financing activities $ 0 $ (793 ) $ 0 |
Sohu.com Inc. Shareholders' E46
Sohu.com Inc. Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Sohu.com Inc.'s outstanding shares | Number of Outstanding Shares 2013 2014 2015 Common stock: Balance, beginning of year 38,089 38,326 38,507 Issuance of common stock 237 181 146 Balance, end of year 38,326 38,507 38,653 |
Sohu 2000 Stock Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share option activity | Options Number Weighted Weighted Aggregate Outstanding at January 1, 2015 110 $ 19.20 0.41 $ 3,737 Exercised (110 ) 19.20 Forfeited or expired 0 Outstanding at December 31, 2015 0 0 0 0 Vested at December 31, 2015 0 0 0 0 Exercisable at December 31, 2015 0 0 0 0 Note (1): The total intrinsic value of share options exercised for the year ended December 31, 2015 was $4.5 million. |
Sohu 2010 Stock Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted share unit activity | Restricted Share Units Number of (in thousands) Weighted-Average Grant-Date Unvested at January 1, 2015 67 $ 78.16 Granted 17 53.71 Vested (31 ) 69.12 Forfeited (21 ) 84.15 Unvested at December 31, 2015 32 70.24 Expected to vest thereafter 23 70.24 |
Sogou 2010 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share option activity | Options Number Of Weighted Weighted Outstanding at January 1, 2015 19,117 $ 0.236 Granted 1,509 0.001 Exercised (3,826 ) 0.001 Forfeited or expired (4,591 ) 0.001 Outstanding at December 31, 2015 12,209 0.369 7.06 Vested at December 31, 2015 and expected to vest thereafter 3,621 Exercisable at December 31, 2015 3,541 |
Stock option assumptions | Granted to Employees 2013 2014 2015 Average risk-free interest rate 2.10%~2.87% 2.62%~3.05% 2.48%~2.77% Exercise multiple 2~3 2~3 2~3 Expected forfeiture rate (post-vesting) 1.3%~6.0% 0%~12% 1%~12% Weighted average expected option life 9 7 8 Volatility rate 47%~49% 49%~54% 47%~51% Dividend yield 0% 0% 0% Fair value 0.67 5.85~6.35 3.58 |
Sohu Management Sogou Share Option Arrangement [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share option activity | Options Number Of Weighted Weighted Outstanding at January 1, 2015 4,165 $ 0.625 Granted 92 0.524 Exercised (587 ) 0.622 Forfeited or expired (6 ) 0.625 Outstanding at December 31, 2015 3,664 0.623 6.67 Vested at December 31, 2015 and expected to vest thereafter 1,175 Exercisable at December 31, 2015 1,175 |
Stock option assumptions | Granted to Employees 2013 2014 2015 Average risk-free interest rate 2.10%~2.87% 2.62%~2.93% 2.67%~3.01% Exercise multiple 2~3 2~3 2~3 Expected forfeiture rate (Post-vesting) 0%-8% 0%~8% 0% Weighted average expected option life 9 7 8 Volatility rate 47%~48% 52%~54% 50%~53% Dividend yield 0% 0% 0% Fair value 0.27~0.38 5.23 2.96~7.03 |
Changyou's Share-based Awards Granted after IPO [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted share unit activity | Restricted Share Units Number of (in thousands) Weighted-Average Unvested at January 1, 2015 220 $ 14.09 Granted 0 0 Vested (95 ) 14.14 Forfeited (105 ) 14.02 Unvested at December 31, 2015 20 14.25 Expected to vest thereafter 20 14.25 |
Changyou 2014 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted share unit activity | Restricted Share Units Number of Units (in thousands) Weighted-Average Unvested at January 1, 2015 16 $12.64 Granted 0 Vested 0 Forfeited (16 ) 12.64 Unvested at December 31, 2015 0 Expected to vest thereafter 0 |
Video 2011 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock option assumptions | Assumptions Adopted 2015 Average risk-free interest rate 2.54% Exercise multiple 2.8 Expected forfeiture rate (post-vesting) 10% Weighted average expected option life 6 Volatility rate 57.7% Dividend yield 0 Fair value 0.87 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Shi Ji Guang Su [Member] | |
Business Acquisition [Line Items] | |
Schedule of allocation of consideration of assets acquired and liabilities assumed based on fair values | As of September 16, 2013 Cash $ 3,249 Receivables 7,967 Fixed assets acquired 21,964 Goodwill 4,199 Identifiable intangible assets acquired 5,686 Liabilities (15,447 ) Total $ 27,618 |
MoboTap [Member] | |
Business Acquisition [Line Items] | |
Schedule of allocation of consideration of assets acquired and liabilities assumed based on fair values | As of July 31, 2014 Cash consideration $ 90,830 Repurchase option 793 Identifiable intangible assets acquired 27,000 Goodwill 113,040 Other assets 6,714 Put option (298 ) Liabilities assumed (2,995 ) Noncontrolling interest (53,424 ) Total $ 90,830 |
Doyo [Member] | |
Business Acquisition [Line Items] | |
Schedule of allocation of consideration of assets acquired and liabilities assumed based on fair values | As of November 29, 2013 Cash Consideration $ 6,521 Contingent Consideration 4,785 Total consideration 11,306 Tangible assets 1,324 Identifiable intangible assets acquired 3,620 Goodwill 7,626 Liabilities assumed (1,264 ) Total $ 11,306 |
RaidCall Business [Member] | |
Business Acquisition [Line Items] | |
Schedule of allocation of consideration of assets acquired and liabilities assumed based on fair values | As of December 24, 2013 Cash Consideration $ 47,627 Tangible assets 20,016 Identifiable intangible assets acquired 17,888 Goodwill 33,740 Fair value of noncontrolling interest (17,172 ) Liability assumed (6,845 ) Total $ 47,627 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling interest in consolidated balance sheets | As of December 31, 2014 2015 Sogou $ 145,538 $ 125,314 Changyou 341,707 364,416 Total $ 487,245 $ 489,730 |
Noncontrolling interest in consolidated statements of comprehensive income | Year Ended December 31, 2013 2014 2015 Sogou $ (5,884 ) $ (14,202 ) $ 101,656 Changyou 87,289 (18,873 ) 44,886 Others 639 766 0 Total $ 82,044 $ (32,309 ) $ 146,542 |
Net Income _(Loss) per Share (T
Net Income /(Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Net Income /(Loss) per Share [Abstract] | |
Calculation of basic and diluted net loss per share | Year Ended December 31, 2013 2014 2015 Numerator: Net loss attributable to Sohu.com Inc., basic (after subtracting the dividend or deemed dividend to noncontrolling Sogou Series A Preferred shareholders) $ (15,298 ) $ (166,657 ) $ (49,598 ) Effect of dilutive securities: Incremental dilution from Sogou (2,138 ) (3,919 ) 0 Incremental dilution from Changyou (826 ) 0 (1,231 ) Net loss attributable to Sohu.com Inc., diluted $ (18,262 ) $ (170,576 ) $ (50,829 ) Denominator: Weighted average basic common shares outstanding 38,255 38,468 38,598 Effect of dilutive securities: Share options and restricted share units 247 0 0 Weighted average diluted common shares outstanding $ 38,502 $ 38,468 $ 38,598 Basic net loss per share attributable to Sohu.com Inc. $ (0.40 ) $ (4.33 ) $ (1.28 ) Diluted net loss per share attributable to Sohu.com Inc. $ (0.47 ) $ (4.43 ) $ (1.32 ) |
Schedule I - Condensed Financ50
Schedule I - Condensed Financial Information of Registrant (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract] | |
Condensed balance sheets | As of December 31, 2014 2015 ASSETS Current assets: Cash and cash equivalents $ 23,189 $ 16,096 Prepaid and other current assets 1,186 8,320 Due from subsidiaries and variable interest entities 3,806 3,806 Total current assets 28,181 28,222 Interests in subsidiaries and variable interest entities 1,176,914 1,232,327 Total assets $ 1,205,095 $ 1,260,549 LIABILITIES AND SHAREHOLDERSÂ’ EQUITY Current liabilities: Accrued liabilities $ 3,434 $ 19,527 Total current liabilities 3,434 19,527 ShareholdersÂ’ equity: Common stock: $0.001 par value per share (75,400 shares authorized; 38,507 shares and 38,653 shares, respectively, issued and outstanding as of December 31, 2014 and 2015) 44 45 Additional paid-in capital 650,148 798,357 Treasury stock (5,889 shares as of both December 31, 2014 and 2015) (143,858 ) (143,858 ) Accumulated other comprehensive income 109,402 50,151 Retained earnings 585,925 536,327 Total shareholdersÂ’ equity 1,201,661 1,241,022 Total liabilities and shareholdersÂ’ equity $ 1,205,095 $ 1,260,549 |
Condensed statements of comprehensive income | Year Ended December 31, 2013 2014 2015 Revenues $ 0 $ 0 $ 0 Cost of revenues 0 0 0 Gross profit 0 0 0 Operating expenses: General and administrative 10,747 7,829 22,091 Operating loss (10,747 ) (7,829 ) (22,091 ) Equity in profit /(loss) of subsidiaries and variable interest entities 90,676 (129,324 ) (4,430 ) Other expense 0 (28 ) (12 ) Interest income 36 76 95 Income /(loss) before income tax expense 79,965 (137,105 ) (26,438 ) Income tax expense 12,840 1,805 11,249 Net income /(loss) 67,125 (138,910 ) (37,687 ) Other comprehensive income /(loss) 36,763 (6,903 ) (59,251 ) Comprehensive income /(loss) $ 103,888 $ (145,813 ) $ (96,938 ) |
Condensed statements of cash flows | Year Ended December 31, 2013 2014 2015 Cash flows from operating activities: Net income /(loss) $ 67,125 $ (138,910 ) $ (37,687 ) Adjustments to reconcile net income to net cash used in operating activities: Investment income from subsidiaries and variable interest entities (90,676 ) 129,324 4,430 Share-based compensation expense 886 1,120 15,393 Changes in current assets and liabilities: Prepaid and other current assets 206 (110 ) (71 ) Taxes payable 2,771 (510 ) 811 Accrued liabilities 574 (3,996 ) 7,905 Net cash used in operating activities (19,114 ) (13,082 ) (9,219 ) Cash flows from investing activities: Dividend received 30,000 0 0 Net cash provided by investing activities 30,000 0 0 Cash flows from financing activities: Issuance of common stock 1,915 612 2,126 Net cash provided by financing activities 1,915 612 2,126 Net increase /(decrease) in cash and cash equivalents 12,801 (12,470 ) (7,093 ) Cash and cash equivalents at beginning of year 22,858 35,659 23,189 Cash and cash equivalents at end of year $ 35,659 $ 23,189 $ 16,096 |
Organization and Nature of Op51
Organization and Nature of Operations (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Organization and Nature of Operations [Line Items] | |||
Total revenues | $ 1,937,091 | $ 1,673,077 | $ 1,400,274 |
Product Risk [Member] | Online game revenues [Member] | TLBB [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of revenues derived from TLBB | 50.00% | ||
Product Risk [Member] | Total revenues [Member] | TLBB [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of revenues derived from TLBB | 16.00% | ||
Changyou [Member] | TLBB [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Total revenues | $ 315,600 | ||
Changyou [Member] | Product Risk [Member] | Online game revenues [Member] | TLBB [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of revenues derived from TLBB | 50.00% | ||
Changyou [Member] | Product Risk [Member] | Total revenues [Member] | TLBB [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of revenues derived from TLBB | 41.00% |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (Share-based Compensation Expense) (Details) | Jul. 10, 2012Employees$ / sharesshares | Jan. 04, 2012shares | Sep. 30, 2013Employees | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jun. 01, 2015shares | Feb. 16, 2015shares | Feb. 07, 2015shares | Nov. 02, 2014shares | Jul. 02, 2010shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Compensation expense | $ 53,443,000 | $ 74,443,000 | $ 10,429,000 | ||||||||
Sohu 2010 Stock Incentive Plan [Member] | Ordinary Shares [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares authorized for issuance | shares | 1,500,000 | ||||||||||
Sohu 2010 Stock Incentive Plan [Member] | Stock Options [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Installments of share options granted | Four equal installments | ||||||||||
Award vesting period | 4 years | ||||||||||
Compensation expense | $ 25,600,000 | ||||||||||
Sohu 2010 Stock Incentive Plan [Member] | Stock Options [Member] | Ordinary Shares [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of options granted | shares | 1,068,000 | ||||||||||
Sohu 2010 Stock Incentive Plan [Member] | Restricted Share Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Compensation expense | 2,200,000 | 3,000,000 | 1,600,000 | ||||||||
Sohu (excluding Sohu Video) [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Compensation expense | 27,811,000 | 4,410,000 | 3,799,000 | ||||||||
Changyou [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Compensation expense | $ 15,024,000 | 4,087,000 | 1,195,000 | ||||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Stock Options [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of options granted | shares | 1,998,000 | 2,416,000 | |||||||||
Installments of share options granted | Four equal installments | ||||||||||
Award vesting period | 4 years | ||||||||||
Number of ordinary shares converted to options from restricted share units | shares | 2,400,000 | ||||||||||
Compensation expense | $ 15,200,000 | 2,600,000 | |||||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Restricted Share Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Award vesting period | 4 years | ||||||||||
Compensation expense | $ (17,000) | ||||||||||
Sohu Video [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Compensation expense | $ 298,000 | 4,028,000 | 0 | ||||||||
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Ordinary Shares [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares authorized for issuance | shares | 25,000,000 | ||||||||||
Percentage of outstanding ordinary shares on a fully-diluted basis | 10.00% | ||||||||||
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Stock Options [Member] | Ordinary Shares [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of options granted | shares | 16,368,200 | ||||||||||
Installments of share options granted | Four equal installments | ||||||||||
Number of options vested | shares | 4,972,800 | ||||||||||
Compensation expense | $ 300,000 | 4,000,000 | |||||||||
7Road [Member] | 7Road 2012 Share Incentive Plan [Member] | Restricted Share Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Employees holding the restricted share units | Employees | 42 | ||||||||||
Number of accumulated restricted share units granted under the plan | shares | 2,223,750 | ||||||||||
7Road [Member] | Exchange Program of 7Road 2012 Share Incentive Plan, Scheme I [Member] | Restricted Share Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Cash payment price for each restricted share | $ / shares | $ 2.90 | ||||||||||
Compensation expense | $ 100,000 | 800,000 | 3,300,000 | ||||||||
7Road [Member] | Exchange Program of 7Road 2012 Share Incentive Plan, Scheme I [Member] | Restricted Share Units [Member] | First Anniversary [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Ratio of restricted share unit to be vested and payable | 40.00% | ||||||||||
7Road [Member] | Exchange Program of 7Road 2012 Share Incentive Plan, Scheme I [Member] | Restricted Share Units [Member] | Second Anniversary [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Ratio of restricted share unit to be vested and payable | 30.00% | ||||||||||
7Road [Member] | Exchange Program of 7Road 2012 Share Incentive Plan, Scheme I [Member] | Restricted Share Units [Member] | Third Anniversary [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Ratio of restricted share unit to be vested and payable | 30.00% | ||||||||||
7Road [Member] | Exchange Program of 7Road 2012 Share Incentive Plan, Scheme II [Member] | Restricted Share Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period commencing on grant date | 7 years | ||||||||||
Employees newly involved under the plan | Employees | 48 | ||||||||||
Compensation expense | $ 0 | $ 300,000 | $ 400,000 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (Taxation) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Taxation [Line Items] | |||
Withholding tax rate on dividends, foreign invested enterprises to foreign holding companies | 10.00% | ||
U.S. corporate income tax rate | 35.00% | 35.00% | 35.00% |
Brand advertising and search and search-related business and Changyou's Web game business and licensed mobile games and mobile-related services [Member] | |||
Taxation [Line Items] | |||
Value-added tax rate | 6.00% | ||
Operation of PC games and self-developed mobile games [Member] | |||
Taxation [Line Items] | |||
Business tax rate | 5.00% | ||
HONG KONG | |||
Taxation [Line Items] | |||
Preferential withholding tax rate on dividends, foreign invested enterprises | 5.00% |
Summary of Significant Accoun54
Summary of Significant Accounting Policies (Balance Sheet Elements) (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Summary of Significant Accounting Policies [Abstract] | |
Time deposits and money market funds, maximum of original maturity | 3 months |
Fixed assets, residual value | $ 0 |
Intangible assets, residual value | $ 0 |
Summary of Significant Accoun55
Summary of Significant Accounting Policies (Estimated Useful Lives of Fixed Assets) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Office buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | 36-47 |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | Lesser of term of the lease or the estimated useful lives of the assets |
Building improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | 10 |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | 4-10 |
Office furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | 5 |
Computer equipment and hardware [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | 2-5 |
Summary of Significant Accoun56
Summary of Significant Accounting Policies (Estimated Useful Lives of Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Domain names and trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (years) | 4-30 |
Developed technologies [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (years) | 3-10 |
Computer software [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (years) | 1-5 |
Video content [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (years) | 4 months to 2 years, or over the applicable licensing period |
Cinema advertising slot rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (years) | over the contract terms |
Operating rights for licensed games [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (years) | over the contract terms |
Summary of Significant Accoun57
Summary of Significant Accounting Policies (Effect of Recent Accounting Pronouncements) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of Significant Accounting Policies [Abstract] | ||
Current deferred tax assets | $ 4,673 | $ 4,918 |
Deferred tax liabilities | $ 24,884 | $ 22,356 |
Segment Information (Segment Op
Segment Information (Segment Operating Information by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Operating Segments [Member] | Sohu [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 590,471 | [1] | $ 546,262 | [2] | $ 460,444 | [2] | |
Segment cost of revenues | (393,564) | (320,035) | (244,696) | ||||
Segment gross profit | 196,907 | 226,227 | 215,748 | ||||
SBC in cost of revenues | [3] | (1,381) | (728) | (425) | |||
Gross profit | 195,526 | 225,499 | 215,323 | ||||
Operating expenses: | |||||||
Product development | (94,392) | (93,227) | (85,066) | ||||
Sales and marketing | (203,332) | (220,479) | (196,625) | ||||
General and administrative | (57,014) | (43,640) | (38,567) | ||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 0 | 0 | |||||
SBC in operating expenses | [3] | (26,743) | (7,378) | (2,831) | |||
Total operating expenses | (381,481) | (364,724) | (323,089) | ||||
Operating profit /(loss) | (185,955) | (139,225) | (107,766) | ||||
Other income | 92,455 | [4] | 8,369 | 168,420 | [5] | ||
Net interest income | 2,683 | 8,565 | 6,979 | ||||
Exchange difference | 1,716 | (325) | (1,001) | ||||
Income /(loss) before income tax expense | (89,101) | (122,616) | 66,632 | ||||
Income tax expense | (13,451) | (3,557) | (14,033) | ||||
Net income /(loss) | (102,552) | (126,173) | 52,599 | ||||
Operating Segments [Member] | Sogou [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 591,803 | [1] | 386,382 | [2] | 216,515 | [2] | |
Segment cost of revenues | (247,949) | (163,426) | (109,024) | ||||
Segment gross profit | 343,854 | 222,956 | 107,491 | ||||
SBC in cost of revenues | [3] | (330) | (1,092) | (49) | |||
Gross profit | 343,524 | 221,864 | 107,442 | ||||
Operating expenses: | |||||||
Product development | (124,210) | (102,329) | (67,714) | ||||
Sales and marketing | (93,055) | (73,932) | (39,399) | ||||
General and administrative | (14,422) | (13,446) | (9,573) | ||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 0 | 0 | |||||
SBC in operating expenses | [3] | (10,049) | (62,950) | (10,261) | |||
Total operating expenses | (241,736) | (252,657) | (126,947) | ||||
Operating profit /(loss) | 101,788 | (30,793) | (19,505) | ||||
Other income | 1,142 | [4] | 2,462 | 2,713 | [5] | ||
Net interest income | 5,332 | 2,773 | 1,230 | ||||
Exchange difference | 667 | (149) | 277 | ||||
Income /(loss) before income tax expense | 108,929 | (25,707) | (15,285) | ||||
Income tax expense | (9,430) | 0 | (6) | ||||
Net income /(loss) | 99,499 | (25,707) | (15,291) | ||||
Operating Segments [Member] | Changyou [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 761,636 | [1] | 755,266 | [2] | 737,875 | [2] | |
Segment cost of revenues | (216,727) | (201,710) | (126,336) | ||||
Segment gross profit | 544,909 | 553,556 | 611,539 | ||||
SBC in cost of revenues | [3] | (37) | (152) | (101) | |||
Gross profit | 544,872 | 553,404 | 611,438 | ||||
Operating expenses: | |||||||
Product development | (165,130) | (193,044) | (119,434) | ||||
Sales and marketing | (91,334) | (241,202) | (128,756) | ||||
General and administrative | (71,771) | (104,663) | (56,567) | ||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | (40,324) | (52,282) | |||||
SBC in operating expenses | [3] | (14,988) | (3,962) | (1,173) | |||
Total operating expenses | (383,547) | (595,153) | (305,930) | ||||
Operating profit /(loss) | 161,325 | (41,749) | 305,508 | ||||
Other income | 64,961 | [4] | 4,112 | 3,613 | [5] | ||
Net interest income | 15,444 | 19,639 | 19,620 | ||||
Exchange difference | 2,954 | (668) | (5,936) | ||||
Income /(loss) before income tax expense | 244,684 | (18,666) | 322,805 | ||||
Income tax expense | (54,055) | (2,493) | (36,383) | ||||
Net income /(loss) | 190,629 | (21,159) | 286,422 | ||||
Eliminations [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | (6,819) | [1] | (14,833) | [2] | (14,560) | [2] | |
Segment cost of revenues | 924 | 1,509 | 581 | ||||
Segment gross profit | (5,895) | (13,324) | (13,979) | ||||
SBC in cost of revenues | [3] | 0 | 0 | 0 | |||
Gross profit | (5,895) | (13,324) | (13,979) | ||||
Operating expenses: | |||||||
Product development | 4,932 | 4,297 | 729 | ||||
Sales and marketing | 6,845 | 14,744 | 14,199 | ||||
General and administrative | (656) | (733) | (116) | ||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 0 | 0 | |||||
SBC in operating expenses | [3] | 85 | 1,820 | 4,411 | |||
Total operating expenses | 11,206 | 20,128 | 19,223 | ||||
Operating profit /(loss) | 5,311 | 6,804 | 5,244 | ||||
Other income | (84,032) | [4] | (4,984) | (162,025) | [5] | ||
Net interest income | 0 | 0 | 0 | ||||
Exchange difference | 0 | 0 | 0 | ||||
Income /(loss) before income tax expense | (78,721) | 1,820 | (156,781) | ||||
Income tax expense | 0 | 0 | 0 | ||||
Net income /(loss) | (78,721) | 1,820 | (156,781) | ||||
Revenues | 1,937,091 | 1,673,077 | 1,400,274 | ||||
Segment cost of revenues | (857,316) | (683,662) | (479,475) | ||||
Segment gross profit | 1,079,775 | 989,415 | 920,799 | ||||
SBC in cost of revenues | [3] | (1,748) | (1,972) | (575) | |||
Gross profit | 1,078,027 | 987,443 | 920,224 | ||||
Product development | (378,800) | (384,303) | (271,485) | ||||
Sales and marketing | (380,876) | (520,869) | (350,581) | ||||
General and administrative | (143,863) | (162,482) | (104,823) | ||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | (40,324) | (52,282) | 0 | ||||
SBC in operating expenses | [3] | (51,695) | (72,470) | (9,854) | |||
Total operating expenses | (995,558) | (1,192,406) | (736,743) | ||||
Operating profit /(loss) | 82,469 | (204,963) | 183,481 | ||||
Other income | 74,526 | 9,959 | 12,721 | ||||
Net interest income | 23,459 | 30,977 | 27,829 | ||||
Exchange difference | 5,337 | (1,142) | (6,660) | ||||
Income /(loss) before income tax expense | 185,791 | (165,169) | 217,371 | ||||
Income tax expense | (76,936) | (6,050) | (50,422) | ||||
Net income /(loss) | $ 108,855 | $ (171,219) | $ 166,949 | ||||
[1] | The elimination for segment revenues and other income mainly consists of revenues from marketing services provided among the Sohu, Sogou and Changyou segments, and Sogou's repurchase of Sogou shares from Sohu.com (Search) Limited. | ||||||
[2] | The elimination for segment revenues mainly consists of revenues from marketing services provided by the brand advertising segment (banner advertisements, etc.) to the Changyou segment. | ||||||
[3] | "SBC" stands for share-based compensation expense. | ||||||
[4] | In the third quarter of 2015, Sogou purchased from Sohu 24.0 million Series A Preferred Shares of Sogou at the price of $78.8 million. Accordingly, Sohu recognized $78.8 million in other income which was eliminated in the Group's consolidated statements of comprehensive income. | ||||||
[5] | The elimination for other income is primarily for the portion paid to Sohu of a special dividend paid by Sogou to holders of its Series A Preferred Shares. |
Segment Information (Segment As
Segment Information (Segment Assets Information by Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Operating Segments [Member] | Sohu [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | $ 430,804 | $ 431,272 | ||||
Accounts receivable, net | 176,759 | 137,183 | ||||
Fixed assets, net | 223,939 | 252,255 | ||||
Total assets | 1,356,263 | [1] | 1,159,403 | [2] | ||
Operating Segments [Member] | Sogou [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | 244,484 | 224,273 | ||||
Accounts receivable, net | 28,986 | 15,341 | ||||
Fixed assets, net | 70,447 | 44,686 | ||||
Total assets | 387,875 | [1] | 305,975 | [2] | ||
Operating Segments [Member] | Changyou [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | 569,917 | 220,795 | ||||
Accounts receivable, net | 67,959 | 77,969 | ||||
Fixed assets, net | 214,306 | 243,837 | ||||
Total assets | 1,779,506 | [1] | 1,547,965 | [2] | ||
Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Accounts receivable, net | (87) | (92) | ||||
Fixed assets, net | 0 | 0 | ||||
Total assets | (481,450) | [1] | (146,334) | [2] | ||
Cash and cash equivalents | 1,245,205 | 876,340 | $ 1,287,288 | $ 833,535 | ||
Accounts receivable, net | 273,617 | 230,401 | ||||
Fixed assets, net | 508,692 | 540,778 | ||||
Total assets | $ 3,042,194 | $ 2,867,009 | ||||
[1] | The elimination for segment assets mainly consists of elimination of intracompany loans between the Sohu segment and the Changyou segment, and elimination of long-term investments in subsidiaries and consolidated VIEs. | |||||
[2] | The elimination for segment assets mainly consists of elimination of long-term investments in subsidiaries and consolidated VIEs. |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - Sogou [Member] - Series A Preferred Shares [Member] - Sohu [Member] shares in Millions, $ in Millions | Sep. 30, 2015USD ($)shares |
Restructuring Cost and Reserve [Line Items] | |
Purchase of Series A Preferred Shares, shares | shares | 24 |
Purchase of Series A Preferred Shares, aggregate purchase price | $ | $ 78.8 |
Share-based Compensation Expe61
Share-based Compensation Expense (Share-based Compensation Expense Recognized in Costs and Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 53,443 | $ 74,443 | $ 10,429 |
Cost of revenues [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 1,748 | 1,973 | 575 |
Product development expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 19,344 | 24,982 | 4,638 |
Sales and marketing expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 3,054 | 5,645 | 1,071 |
General and administrative expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 29,297 | $ 41,843 | $ 4,145 |
Share-based Compensation Expe62
Share-based Compensation Expense (Share-based Compensation Expense Recognized for Share Awards of Sohu(excluding Sohu Video), Sogou, Changyou and Sohu Video) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 53,443,000 | $ 74,443,000 | $ 10,429,000 | |
Capitalized share-based compensation expense | 0 | 0 | 0 | |
Sohu (excluding Sohu Video) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 27,811,000 | 4,410,000 | 3,799,000 | |
Sogou [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | [1] | 10,310,000 | 61,918,000 | 5,435,000 |
Changyou [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 15,024,000 | 4,087,000 | 1,195,000 | |
Sohu Video [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 298,000 | $ 4,028,000 | $ 0 | |
[1] | Sogou share-based awards also include compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of Sogou Class A Ordinary Shares that Sogou repurchased in the second quarter of 2014. |
Advertising and Promotional E63
Advertising and Promotional Expenses, included in Sales and Marketing Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Advertising and Promotional Expenses, included in Sales and Marketing Expenses [Abstract] | |||
Advertising and promotional expenses | $ 196.9 | $ 310.7 | $ 193.5 |
Other Income _(Expense) (Detail
Other Income /(Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Other Income /(Expense) [Abstract] | ||||
Investment income | [1] | $ 60,264 | $ 2,039 | $ 4,507 |
Government grant | 2,839 | 3,618 | 4,959 | |
Charitable donations | (1,192) | (683) | (1,543) | |
Change in fair value of short-term investments | 9,374 | 3,137 | 2,451 | |
Change in fair value of China Web put option | 0 | 2,304 | 2,160 | |
Others | 3,241 | (456) | 187 | |
Total | $ 74,526 | $ 9,959 | $ 12,721 | |
[1] | The $60.3 million in investment income in 2015 primarily included a $55.1 million disposal gain recognized by Changyou for its sale of the 7Road business and certain Changyou subsidiaries and a $13.0 million disposal gain recognized by Sohu for its sale of an equity investment, offset by an $8.9 million investment loss from the Group's other equity investments. |
Other Income _(Expense) (Narrat
Other Income /(Expense) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Other Income /(Expense) [Abstract] | ||||
Investment income | [1] | $ 60,264 | $ 2,039 | $ 4,507 |
Disposal gain recognized in business transaction | 55,139 | $ 0 | $ 0 | |
Disposal gain for sale of an equity investment | 13,000 | |||
Investment loss from other equity investments | $ 8,900 | |||
[1] | The $60.3 million in investment income in 2015 primarily included a $55.1 million disposal gain recognized by Changyou for its sale of the 7Road business and certain Changyou subsidiaries and a $13.0 million disposal gain recognized by Sohu for its sale of an equity investment, offset by an $8.9 million investment loss from the Group's other equity investments. |
Balance Sheet Components (Detai
Balance Sheet Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Cash and cash equivalents | |||||
Cash | $ 517,973 | $ 293,180 | |||
Cash equivalents | 727,232 | 583,160 | |||
Cash and cash equivalents | 1,245,205 | 876,340 | $ 1,287,288 | $ 833,535 | |
Accounts receivable, net | |||||
Accounts receivable | 277,593 | 234,469 | |||
Allowance for doubtful accounts: | |||||
Balance at the beginning of year | (4,068) | (6,801) | |||
Additional provision for bad debt | (3,204) | (2,029) | |||
Write-offs | 857 | 3,137 | |||
Cash collection | 2,236 | 1,625 | |||
Exchange difference | 203 | 0 | |||
Balance at the end of year | (3,976) | (4,068) | |||
Accounts receivable, net | 273,617 | 230,401 | |||
Prepaid and other current assets | |||||
Prepaid content and license | 57,910 | 58,331 | |||
Due from 7Road | 20,579 | 0 | |||
Prepaid income tax | 13,073 | 0 | |||
Matching loan due from a related party | [1] | 12,740 | 0 | ||
Prepaid rental deposit | 10,231 | 11,260 | |||
Prepaid cost of revenue | 8,458 | 7,875 | |||
Deferred tax assets | 4,673 | 4,918 | |||
Employee advances | 3,844 | 5,619 | |||
Receivables from third party payment platforms | 3,673 | 0 | |||
Due from a related party | 3,080 | 1,625 | |||
Prepaid office rental and facilities expenses | 2,223 | 2,235 | |||
Prepaid advertising and promotion fees | 1,905 | 1,148 | |||
Interest receivable | 1,058 | 6,689 | |||
Prepaid film production fee | 0 | 3,941 | |||
Others | 15,443 | 13,063 | |||
Prepaid and other current assets | 158,890 | 116,704 | |||
Prepaid non-current assets | |||||
Prepaid PRC income tax for the sale of assets associated with 17173.com by Sohu to Changyou | 6,067 | 8,293 | |||
Others | 187 | 640 | |||
Prepaid non-current assets | 6,254 | 8,933 | |||
Other short-term liabilities | |||||
Deposit received from membership card buyers | 88,990 | 59,623 | |||
Contract deposits from advertisers | 21,367 | 14,889 | |||
Matching loan due to a related party | [1] | 13,005 | 0 | ||
Consideration payable for acquisition | 5,390 | 5,000 | |||
Early exercise of Sogou share options for trust arrangements | 4,530 | 4,891 | |||
Accrued liabilities to suppliers | 4,110 | 2,470 | |||
Taxes payable for exercise or settlement of share-based awards | 2,382 | 2,382 | |||
Government grant | 1,694 | 4,864 | |||
Accrued Business Tax arising from the sale of assets associated with 17173.com by Sohu to Changyou | 1,647 | 1,669 | |||
Others | 10,902 | 9,856 | |||
Other short-term liabilities | 154,017 | 105,644 | |||
Receipts in advance relating to: | |||||
brand advertising business | 20,498 | 23,328 | |||
search and search-related business | 65,911 | 60,271 | |||
online game business | 20,244 | 18,198 | |||
others business | 0 | 449 | |||
Total receipts in advance | 106,653 | 102,246 | |||
Deferred revenue | 28,732 | 25,494 | |||
Receipts in advance and deferred revenue | $ 135,385 | $ 127,740 | |||
[1] | During 2015, certain subsidiaries of Changyou and certain subsidiaries of SoEasy entered into a series of loan agreements, pursuant to which the subsidiaries of Changyou are entitled to draw down HK dollar-denominated loans from the SoEasy subsidiaries and the SoEasy subsidiaries are entitled to draw down equivalent RMB-denominated loans from the subsidiaries of Changyou, to facilitate each other's business operations. All of the loans carry a fixed rate of interest equal to the current market interest rate. As of December 31, 2015, Changyou had drawn down from SoEasy loans in an aggregate principal amount of HKD100 million (approximately $12.9 million), which is recorded in other short-term liabilities, and SoEasy had drawn down from Changyou loans in an aggregate principal amount of RMB80 million (approximately $12.3 million), which is recorded in prepaid and other current assets . For the year ended December 31, 2015, interest income that Changyou earned from the RMB-denominated loan was $0.4 million and was recorded as prepaid and other current assets, and interest expense that Changyou accrued for the HK dollar-denominated loan was $0.1 million and was recorded as other short-term liabilities. |
Balance Sheet Components (Match
Balance Sheet Components (Matching Loan with Related Party) (Details) - Dec. 31, 2015 - Changyou [Member] - SoEasy [Member] ¥ in Millions, HKD in Millions, $ in Millions | USD ($) | HKD | CNY (¥) |
Schedule of Matching Loan with Related Party [Line Items] | |||
Principal amount of matching loans from related parties | $ 12.9 | HKD 100 | |
Principal amount of matching loans to related parties | 12.3 | ¥ 80 | |
Interest income | 0.4 | ||
Interest expense | $ 0.1 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments, Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 174,500 | |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 727,232 | $ 583,160 |
Restricted time deposits | 363,979 | 426,748 |
Short-term investments | 174,515 | 191,577 |
Available-for-sale equity securities | 14,301 | 11,273 |
Total | 1,280,027 | 1,212,758 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Restricted time deposits | 0 | 0 |
Short-term investments | 0 | 0 |
Available-for-sale equity securities | 14,301 | 11,273 |
Total | 14,301 | 11,273 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 727,232 | 583,160 |
Restricted time deposits | 363,979 | 426,748 |
Short-term investments | 174,515 | 191,577 |
Available-for-sale equity securities | 0 | 0 |
Total | 1,265,726 | 1,201,485 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Restricted time deposits | 0 | 0 |
Short-term investments | 0 | 0 |
Available-for-sale equity securities | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2015 | Apr. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2014 | Aug. 12, 2014 | Feb. 28, 2013 | |
Cash equivalents [Abstract] | ||||||||
Time deposits and money market funds, maximum of original maturity | 3 months | |||||||
Restricted Time Deposits [Abstract] | ||||||||
Restricted time deposits, collateral for credit facilities | $ 9,000 | |||||||
Short-term Investments [Abstract] | ||||||||
Investments in financial instruments | $ 174,500 | |||||||
Change in fair value of short-term investments | 9,374 | $ 3,137 | $ 2,451 | |||||
Shares of Keyeast [Member] | ||||||||
Available-for-Sale Equity Securities [Abstract] | ||||||||
Percentage of total outstanding common shares acquired classified as available-for-sale securities | 6.00% | |||||||
Purchase price of available-for-sale securities | $ 15,100 | |||||||
Fair value of available-for-sale equity securities | 14,300 | |||||||
Unrealized loss representing change in fair value | 800 | |||||||
SoEasy [Member] | ||||||||
Long-term Investment [Abstract] | ||||||||
Equity Method Investment amount | $ 15,200 | $ 4,800 | ||||||
Additional investment | $ 16,300 | |||||||
Equity method investment, ownership percentage in SoEasy's capital | 35.00% | |||||||
Changyou [Member] | ||||||||
Restricted Time Deposits [Abstract] | ||||||||
Total amount of bank loans | $ 344,500 | |||||||
RMB deposits in onshore branches securing bank loans recognized as restricted time deposits | 354,700 | |||||||
Interest income from restricted time deposits securing loans | 12,800 | 16,300 | 13,000 | |||||
Interest expense on bank loans | $ 7,100 | $ 6,400 | $ 8,800 | |||||
Sogou [Member] | Zhihu [Member] | ||||||||
Long-term Investment [Abstract] | ||||||||
Long-term investments paid in cash | $ 12,000 | |||||||
Cost method investment, ownership percentage in Zhihu's capital | 3.00% |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible assets impairment losses | $ 19,900 | |
Goodwill impairment losses | $ 33,801 | |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible assets, net | 55,415 | 110,691 |
Intangible assets impairment losses | 19,947 | 20,168 |
Goodwill | 154,219 | 303,426 |
Goodwill impairment losses | 31,445 | 33,801 |
Total | 209,634 | 414,117 |
Total asset impairment losses | 51,392 | 53,969 |
Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible assets, net | 0 | 0 |
Goodwill | 0 | 0 |
Total | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible assets, net | 0 | 0 |
Goodwill | 0 | 0 |
Total | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible assets, net | 55,415 | 110,691 |
Goodwill | 154,219 | 303,426 |
Total | $ 209,634 | $ 414,117 |
Fixed Assets (Fixed Assets by M
Fixed Assets (Fixed Assets by Major Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fixed assets, net | ||
Office buildings | $ 393,938 | $ 417,512 |
Computer equipment and hardware | 302,832 | 282,547 |
Leasehold and building improvements | 49,703 | 55,792 |
Office furniture | 10,784 | 11,608 |
Vehicles | 4,930 | 5,093 |
Fixed assets, gross | 762,187 | 772,552 |
Accumulated depreciation | (253,495) | (231,774) |
Fixed assets, net | $ 508,692 | $ 540,778 |
Fixed Assets (Narrative) (Detai
Fixed Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fixed Assets [Abstract] | |||
Depreciation expenses for fixed assets | $ 77,421 | $ 78,417 | $ 54,948 |
Intangible Assets, Net (Finite-
Intangible Assets, Net (Finite-lived Intangible Assets by Major Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 364,365 | $ 372,965 |
Accumulated amortization | (254,841) | (212,853) |
Impairment | (54,109) | (49,421) |
Net carrying amount | 55,415 | 110,691 |
Video content [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 226,832 | 150,318 |
Accumulated amortization | (201,405) | (115,356) |
Impairment | (11,129) | (12,454) |
Net carrying amount | 14,298 | 22,508 |
Cinema advertising slot rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 12,615 | 53,239 |
Accumulated amortization | (8,721) | (37,360) |
Impairment | 0 | 0 |
Net carrying amount | 3,894 | 15,879 |
Developed technologies [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 19,352 | 49,545 |
Accumulated amortization | (3,393) | (21,855) |
Impairment | (12,334) | (10,751) |
Net carrying amount | 3,625 | 16,939 |
Domain names and trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 35,003 | 39,150 |
Accumulated amortization | (9,458) | (8,675) |
Impairment | (11,747) | (9,534) |
Net carrying amount | 13,798 | 20,941 |
Operating rights for licensed games [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 26,869 | 33,464 |
Accumulated amortization | (9,517) | (12,694) |
Impairment | (9,474) | (8,917) |
Net carrying amount | 7,878 | 11,853 |
Computer software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 15,934 | 15,051 |
Accumulated amortization | (11,173) | (9,428) |
Impairment | 0 | (258) |
Net carrying amount | 4,761 | 5,365 |
Others [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 27,760 | 32,198 |
Accumulated amortization | (11,174) | (7,485) |
Impairment | (9,425) | (7,507) |
Net carrying amount | $ 7,161 | $ 17,206 |
Intangible Assets, Net (Narrati
Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets impairment losses | $ 19.9 | ||
Amortization of intangible assets | 161.1 | $ 77.7 | $ 56.7 |
MoboTap's intangible assets [Member] | Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets impairment losses | $ 8.9 | ||
Changyou's intangible assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets impairment losses | 20.2 | $ 3.6 | |
RaidCall's intangible assets [Member] | Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets impairment losses | $ 15.3 |
Intangible Assets, Net (Estimat
Intangible Assets, Net (Estimated Amortization Expenses for Further Periods) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Intangible Assets, Net [Abstract] | ||
2,016 | $ 27,925 | |
2,017 | 10,171 | |
2,018 | 5,288 | |
2,019 | 2,621 | |
2,020 | 1,263 | |
Thereafter | 8,147 | |
Total expected amortization expense | $ 55,415 | $ 110,691 |
Goodwill (Carrying Value of Goo
Goodwill (Carrying Value of Goodwill by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 378,216 | $ 249,784 |
Accumulated impairment losses, Beginning Balance | (74,790) | (40,989) |
Goodwill, Net, Beginning Balance | 303,426 | 208,795 |
Transactions in Period [Abstract] | ||
Business acquisitions | 128,906 | |
Measurement period adjustment of goodwill for the acquisition of Soso search-related businesses from Tencent | 42 | |
Goodwill associated with the acquisition of 7Road de-recognized upon the sale of the 7Road business | (109,735) | |
Impairment loss related to MoboTap | (29,569) | |
Goodwill associated with the acquisition of Doyo, transferred to held-for-sale assets and impaired | (7,352) | |
Foreign currency translation adjustment | (2,551) | (516) |
Impairment loss | (33,801) | |
Goodwill, Ending Balance | 260,454 | 378,216 |
Accumulated impairment losses, Ending Balance | (106,235) | (74,790) |
Goodwill, Net, Ending Balance | 154,219 | 303,426 |
Changyou [Member] | ||
Transactions in Period [Abstract] | ||
Impairment loss | (33,800) | |
Operating Segments [Member] | Sohu [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 73,908 | 58,042 |
Accumulated impairment losses, Beginning Balance | (35,788) | (35,788) |
Goodwill, Net, Beginning Balance | 38,120 | 22,254 |
Transactions in Period [Abstract] | ||
Business acquisitions | 15,866 | |
Measurement period adjustment of goodwill for the acquisition of Soso search-related businesses from Tencent | 0 | |
Goodwill associated with the acquisition of 7Road de-recognized upon the sale of the 7Road business | 0 | |
Impairment loss related to MoboTap | 0 | |
Goodwill associated with the acquisition of Doyo, transferred to held-for-sale assets and impaired | 0 | |
Foreign currency translation adjustment | (928) | 0 |
Impairment loss | 0 | |
Goodwill, Ending Balance | 72,980 | 73,908 |
Accumulated impairment losses, Ending Balance | (35,788) | (35,788) |
Goodwill, Net, Ending Balance | 37,192 | 38,120 |
Operating Segments [Member] | Sogou [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 6,309 | 6,290 |
Accumulated impairment losses, Beginning Balance | 0 | 0 |
Goodwill, Net, Beginning Balance | 6,309 | 6,290 |
Transactions in Period [Abstract] | ||
Business acquisitions | 0 | |
Measurement period adjustment of goodwill for the acquisition of Soso search-related businesses from Tencent | 42 | |
Goodwill associated with the acquisition of 7Road de-recognized upon the sale of the 7Road business | 0 | |
Impairment loss related to MoboTap | 0 | |
Goodwill associated with the acquisition of Doyo, transferred to held-for-sale assets and impaired | 0 | |
Foreign currency translation adjustment | (364) | (23) |
Impairment loss | 0 | |
Goodwill, Ending Balance | 5,945 | 6,309 |
Accumulated impairment losses, Ending Balance | 0 | 0 |
Goodwill, Net, Ending Balance | 5,945 | 6,309 |
Operating Segments [Member] | Changyou [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 297,999 | 185,452 |
Accumulated impairment losses, Beginning Balance | (39,002) | (5,201) |
Goodwill, Net, Beginning Balance | 258,997 | 180,251 |
Transactions in Period [Abstract] | ||
Business acquisitions | 113,040 | |
Measurement period adjustment of goodwill for the acquisition of Soso search-related businesses from Tencent | 0 | |
Goodwill associated with the acquisition of 7Road de-recognized upon the sale of the 7Road business | (109,735) | |
Impairment loss related to MoboTap | (29,569) | |
Goodwill associated with the acquisition of Doyo, transferred to held-for-sale assets and impaired | (7,352) | |
Foreign currency translation adjustment | (1,259) | (493) |
Impairment loss | (33,801) | |
Goodwill, Ending Balance | 181,529 | 297,999 |
Accumulated impairment losses, Ending Balance | (70,447) | (39,002) |
Goodwill, Net, Ending Balance | $ 111,082 | $ 258,997 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)ReportingUnits | Dec. 31, 2014USD ($) | |
Goodwill [Line Items] | ||
Number of reporting units | ReportingUnits | 2 | |
Goodwill impairment losses | $ 33,801 | |
Changyou [Member] | ||
Goodwill [Line Items] | ||
Goodwill impairment losses | $ 33,800 | |
Changyou [Member] | Doyo [Member] | ||
Goodwill [Line Items] | ||
Goodwill impairment losses | $ 1,900 | |
Changyou [Member] | MoboTap [Member] | ||
Goodwill [Line Items] | ||
Goodwill impairment losses | $ 29,600 |
Taxation (Components of Income
Taxation (Components of Income before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income /(loss) before income tax expense | |||
Income /(loss) from China operations | $ 171,636 | $ (129,349) | $ 270,817 |
Income /(loss) from non China operations | 14,155 | (35,820) | (53,446) |
Total income /(loss) before income tax expense | 185,791 | (165,169) | 217,371 |
Income tax expense applicable to China operations | |||
Current income tax expense | 55,532 | 23,295 | 31,444 |
Deferred tax | 8,735 | (20,637) | 4,088 |
Subtotal income tax expense applicable to China operations | 64,267 | 2,658 | 35,532 |
Non China income tax expense | 11,291 | 1,864 | 12,798 |
Non China withholding tax expense | 1,378 | 1,528 | 2,092 |
Total income tax expense | $ 76,936 | $ 6,050 | $ 50,422 |
Taxation (Tax Holiday Effect) (
Taxation (Tax Holiday Effect) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Taxation [Abstract] | |||
Tax holiday effect | $ 19,626 | $ 186 | $ 62,929 |
Basic net income per share effect | $ 0.51 | $ 0 | $ 1.64 |
Taxation (Effective Tax Rate) (
Taxation (Effective Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Taxation [Abstract] | |||
U.S. federal statutory rate: | 35.00% | 35.00% | 35.00% |
Effect of tax holidays applicable to the subsidiaries and the consolidated VIEs | (11.00%) | 0.00% | (29.00%) |
Tax differential from statutory rate applicable to the subsidiaries and the consolidated VIEs | (13.00%) | (31.00%) | (16.00%) |
Effect of withholding taxes | 2.00% | (3.00%) | 4.00% |
Changes in valuation allowance for deferred tax assets | 31.00% | (22.00%) | 28.00% |
Others | (3.00%) | 17.00% | 1.00% |
Effective Tax Rate | 41.00% | (4.00%) | 23.00% |
Taxation (PRC Corporate Income
Taxation (PRC Corporate Income Tax) (Details) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax and Tax Rate [Line Items] | ||||
Unified income tax rate | 25.00% | |||
High and New Technology Enterprises [Member] | ||||
Income Tax and Tax Rate [Line Items] | ||||
Preferential income tax rate | 15.00% | |||
Preferential income tax rate period (years) | 3 years | |||
Software Enterprise [Member] | ||||
Income Tax and Tax Rate [Line Items] | ||||
Preferential income tax rate | 12.50% | |||
Preferential income tax rate period (years) | 3 years | |||
Income tax exemption period beginning with first profitable year | 2 years | |||
Tax rate reduction rate | 50.00% | |||
Software Enterprise [Member] | Gamespace [Member] | ||||
Income Tax and Tax Rate [Line Items] | ||||
Preferential income tax rate | 12.50% | |||
Preferential income tax rate period (years) | 3 years | |||
Tax rate reduction rate | 50.00% | |||
Software Enterprise [Member] | Shenzhen 7Road [Member] | ||||
Income Tax and Tax Rate [Line Items] | ||||
Preferential income tax rate | 12.50% | |||
Tax rate reduction rate | 50.00% | |||
Software Enterprise [Member] | Shanghai ICE [Member] | ||||
Income Tax and Tax Rate [Line Items] | ||||
Preferential income tax rate | 12.50% | 12.50% | 12.50% | |
Tax rate reduction rate | 50.00% | 50.00% | 50.00% | |
Key National Software Enterprise [Member] | ||||
Income Tax and Tax Rate [Line Items] | ||||
Preferential income tax rate | 10.00% | |||
Preferential income tax rate period (years) | 2 years | |||
Key National Software Enterprise [Member] | AmazGame [Member] | ||||
Income Tax and Tax Rate [Line Items] | ||||
Preferential income tax rate | 10.00% | 10.00% |
Taxation (PRC Withholding Tax o
Taxation (PRC Withholding Tax on Dividends) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Withholding tax on dividends [Line Items] | ||
Withholding income tax rate for dividends, foreign invested enterprises to foreign holding companies | 10.00% | |
Deferred tax liabilities related to withholding tax | $ 24,884 | $ 22,356 |
Changyou [Member] | ||
Withholding tax on dividends [Line Items] | ||
Deferred tax liabilities related to withholding tax | $ 24,900 | |
HONG KONG | ||
Withholding tax on dividends [Line Items] | ||
Preferential withholding tax rate on dividends, foreign invested enterprises | 5.00% |
Taxation (PRC Value -Added Tax
Taxation (PRC Value -Added Tax and Business Tax) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Brand advertising and search and search-related business and Changyou's Web game business and licensed mobile games and mobile-related services [Member] | |
Business Tax and Value Added Tax [Line Items] | |
Value-added tax rate | 6.00% |
Operation of PC games and self-developed mobile games [Member] | |
Business Tax and Value Added Tax [Line Items] | |
Business tax rate | 5.00% |
Taxation (U.S. Corporate Income
Taxation (U.S. Corporate Income Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. Corporate Income Tax [Line Items] | |||
U.S. corporate income tax rate | 35.00% | 35.00% | 35.00% |
Cumulative undistributed earnings | $ 614.1 | $ 630.4 | |
Estimated U.S. income and foreign withholding taxes due if earnings remitted as dividends | $ 214.9 | $ 220.6 |
Taxation (Deferred Tax Assets a
Taxation (Deferred Tax Assets and Liabilities, Significant Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating loss from operations | $ 145,964 | $ 120,586 |
Accrued bonus and commissions | 21,004 | 12,930 |
Intangible assets transfer | 1,156 | 2,261 |
Share-based compensation | 4,979 | 226 |
Others | 2,321 | 2,714 |
Total deferred tax assets | 175,424 | 138,717 |
Less: Valuation allowance | (146,930) | (110,788) |
Net deferred tax assets | 28,494 | 27,929 |
Deferred tax liabilities | ||
Withholding tax for Dividend | (24,884) | (22,356) |
Deferred U.S. tax | (12,450) | 0 |
Intangible assets from business acquisitions | (1,465) | (3,472) |
Others | (3,616) | (3,945) |
Total deferred tax liabilities | $ (42,415) | $ (29,773) |
Taxation (Deferred Tax Assets86
Taxation (Deferred Tax Assets and Liabilities, Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Taxation [Abstract] | |
Net operating losses from PRC entities available to offset against future net profit for income tax purposes | $ 484.1 |
Deferred tax assets generated from net operating losses offset by valuation allowance | 137.4 |
PRC net operating loss generated from previous years, expired | $ 0.9 |
Taxation (Uncertain Tax Positio
Taxation (Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Taxation [Abstract] | |||
Beginning balance | $ 24,515 | $ 24,369 | $ 3,096 |
Increases /(decrease) related to prior year tax positions | 0 | 0 | (154) |
Increases related to current year tax positions | 14,729 | 146 | 21,427 |
Ending balance | $ 39,244 | $ 24,515 | $ 24,369 |
Taxation (Uncertain Tax Posit88
Taxation (Uncertain Tax Positions, Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Taxation [Abstract] | |||
Recognized tax payable | $ 14,600 | ||
Tax payable amount for uncertain tax positions | 14,729 | $ 146 | $ 21,427 |
Balance brought forward from previous years | $ 0 | $ 0 | $ (154) |
Commitments and Contingencies89
Commitments and Contingencies (Contractual Obligation) (Details) $ in Thousands | Dec. 31, 2015USD ($) | |
Contractual Obligation [Line Items] | ||
2,016 | $ 213,510 | |
2,017 | 83,987 | |
2,018 | 32,467 | |
2,019 | 2,030 | |
2,020 | 0 | |
Thereafter | 0 | |
Total Payments Required | 331,994 | |
Purchase of content and services - video [Member] | ||
Contractual Obligation [Line Items] | ||
2,016 | 96,730 | |
2,017 | 18,347 | |
2,018 | 15,383 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 0 | |
Total Payments Required | 130,460 | |
Purchase of cinema advertisement slot rights [Member] | ||
Contractual Obligation [Line Items] | ||
2,016 | 23,745 | |
2,017 | 26,868 | |
2,018 | 10,262 | |
2,019 | 1,010 | |
2,020 | 0 | |
Thereafter | 0 | |
Total Payments Required | 61,885 | |
Purchase of bandwidth [Member] | ||
Contractual Obligation [Line Items] | ||
2,016 | 40,622 | |
2,017 | 4,385 | |
2,018 | 2,351 | |
2,019 | 102 | |
2,020 | 0 | |
Thereafter | 0 | |
Total Payments Required | 47,460 | |
Operating lease obligations [Member] | ||
Contractual Obligation [Line Items] | ||
2,016 | 20,472 | [1] |
2,017 | 11,432 | [1] |
2,018 | 4,392 | [1] |
2,019 | 917 | [1] |
2,020 | 0 | [1] |
Thereafter | 0 | [1] |
Total Payments Required | 37,213 | [1] |
Expenditures for operating rights of licensed games with technological feasibility [Member] | ||
Contractual Obligation [Line Items] | ||
2,016 | 5,818 | |
2,017 | 20,350 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 0 | |
Total Payments Required | 26,168 | |
Purchase of content and services -others [Member] | ||
Contractual Obligation [Line Items] | ||
2,016 | 13,089 | |
2,017 | 2,081 | |
2,018 | 23 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 0 | |
Total Payments Required | 15,193 | |
Fees for rights to operate licensed games in development [Member] | ||
Contractual Obligation [Line Items] | ||
2,016 | 3,038 | |
2,017 | 150 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 0 | |
Total Payments Required | 3,188 | |
Expenditures for rights to titles and characters of games in development [Member] | ||
Contractual Obligation [Line Items] | ||
2,016 | 1,623 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 0 | |
Total Payments Required | 1,623 | |
Others [Member] | ||
Contractual Obligation [Line Items] | ||
2,016 | 8,373 | |
2,017 | 374 | |
2,018 | 56 | |
2,019 | 1 | |
2,020 | 0 | |
Thereafter | 0 | |
Total Payments Required | $ 8,804 | |
[1] | For the years ended December 31, 2015, 2014 and 2013, rental expense included in the operating lease was approximately $27.9 million, $34.6 million, and $29.5 million, respectively. |
Commitments and Contingencies90
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies [Abstract] | |||
Rental expense included in operating lease | $ 27.9 | $ 34.6 | $ 29.5 |
Contingent Consideration (Detai
Contingent Consideration (Details) - Changyou [Member] - USD ($) $ in Millions | Sep. 30, 2015 | Mar. 31, 2015 |
Business Acquisition, Contingent Consideration [Line Items] | ||
Contingent consideration reclassed to other short-term liabilities | $ 6 | |
Doyo [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Aggregate cash consideration | $ 2.9 | |
Forgiveness of contingent consideration | $ 6 |
VIEs (VIEs Consolidated within
VIEs (VIEs Consolidated within Sohu Group, Basic Information for Principal VIEs) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | |||||
Aggregate amount of loans due from related parties | $ 9.3 | $ 9.3 | |||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Registered capital and PRC statutory reserves | 79.6 | 79.6 | |||
High Century [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Registered capital | 4.6 | $ 4.6 | |||
High Century [Member] | Dr. Charles Zhang [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 80.00% | ||||
High Century [Member] | Wei Li [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 20.00% | ||||
Sohu Internet [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Registered capital | $ 1.6 | $ 1.6 | |||
Sohu Internet [Member] | Heng Da Yi Tong [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Transferred equity interest to new shareholders | 25.00% | ||||
Sohu Internet [Member] | High Century [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 100.00% | ||||
Donglin [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Registered capital | $ 1.5 | $ 1.5 | |||
Donglin [Member] | High Century [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Transferred equity interest to new shareholders | 50.00% | ||||
Donglin [Member] | Sohu Internet [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 100.00% | ||||
Heng Da Yi Tong [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Registered capital | 1.2 | $ 1.2 | |||
Heng Da Yi Tong [Member] | Dr. Charles Zhang [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 80.00% | ||||
Heng Da Yi Tong [Member] | Wei Li [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 20.00% | ||||
Focus Interactive [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Registered capital | 1.6 | $ 1.6 | |||
Focus Interactive [Member] | Heng Da Yi Tong [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 100.00% | ||||
Focus Interactive [Member] | High Century [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Transferred equity interest to new shareholders | 100.00% | ||||
Pilot New Era [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Registered capital | 0.7 | $ 0.7 | |||
Pilot New Era [Member] | High Century [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Transferred equity interest to new shareholders | 50.00% | ||||
Pilot New Era [Member] | Sohu Internet [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Transferred equity interest to new shareholders | 50.00% | ||||
Pilot New Era [Member] | Focus Interactive [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 100.00% | ||||
Tianjin Jinhu [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Registered capital | 0.5 | $ 0.5 | |||
Tianjin Jinhu [Member] | Ye Deng [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 50.00% | ||||
Tianjin Jinhu [Member] | Xuemei Zhang [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 50.00% | ||||
Guangzhou Qianjun [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Registered capital | 3.3 | $ 3.3 | |||
Guangzhou Qianjun [Member] | Tianjin Jinhu [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 100.00% | ||||
Sogou Information [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Registered capital | 2.5 | $ 2.5 | |||
Sogou Information [Member] | High Century [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 45.00% | ||||
Sogou Information [Member] | Xiaochuan Wang [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 10.00% | ||||
Sogou Information [Member] | Tencent [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 45.00% | ||||
Gamease [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Registered capital | 1.3 | $ 1.3 | |||
Gamease [Member] | High Century [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 100.00% | ||||
Guanyou Gamespace [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Registered capital | 1.5 | $ 1.5 | |||
Guanyou Gamespace [Member] | Changyou Star [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 100.00% | ||||
Changyou Star [Member] | Dewen Chen [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Transferred equity interest to new shareholders | 50.00% | ||||
Changyou Star [Member] | Jie Liu [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Transferred equity interest to new shareholders | 50.00% | ||||
Shanghai ICE [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Registered capital | $ 1.2 | $ 1.2 | |||
Shanghai ICE [Member] | Runa Pi [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Transferred equity interest to new shareholders | 50.00% | ||||
Shanghai ICE [Member] | Rong Qi [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Transferred equity interest to new shareholders | 50.00% | ||||
Shanghai ICE [Member] | Gamease [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 100.00% | ||||
Wuhan Baina Information [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Registered capital | $ 3 | $ 3 | |||
Wuhan Baina Information [Member] | Changyou Star [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 60.00% | ||||
Wuhan Baina Information [Member] | Gamease [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Transferred equity interest to new shareholders | 60.00% | ||||
Wuhan Baina Information [Member] | Yongzhi Yang [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage | 40.00% |
VIEs (VIEs Consolidated withi93
VIEs (VIEs Consolidated within Sohu Group, Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
ASSETS: | ||||
Cash and cash equivalents | $ 1,245,205 | $ 876,340 | $ 1,287,288 | $ 833,535 |
Restricted time deposit | 227,285 | 282,186 | ||
Accounts receivable, net | 273,617 | 230,401 | ||
Prepaid and other current assets | 158,890 | 116,704 | ||
Fixed assets, net | 508,692 | 540,778 | ||
Goodwill | 154,219 | 303,426 | 208,795 | |
Long-term investments, net | 62,093 | 24,067 | ||
Intangible assets, net | 55,415 | 110,691 | ||
Other non-current assets | 39,315 | 37,344 | ||
LIABILITIES: | ||||
Accounts payable | 129,025 | 127,758 | ||
Receipts in advance and deferred revenue | 135,385 | 127,740 | ||
Net revenue | 1,937,091 | 1,673,077 | 1,400,274 | |
Net loss | 108,855 | (171,219) | 166,949 | |
Consolidated VIEs [Member] | ||||
ASSETS: | ||||
Cash and cash equivalents | 131,270 | 39,534 | ||
Restricted time deposit | 0 | 294 | ||
Accounts receivable, net | 135,925 | 129,881 | ||
Prepaid and other current assets | 101,951 | 23,827 | ||
Intercompany receivables due from the Company's subsidiaries | 140,396 | 176,902 | ||
Total current assets | 509,542 | 370,438 | ||
Fixed assets, net | 7,362 | 12,597 | ||
Goodwill | 36,351 | 154,774 | ||
Long-term investments, net | 15,960 | 7,348 | ||
Intangible assets, net | 18,266 | 39,726 | ||
Other non-current assets | 12,057 | 71,767 | ||
Total assets | 599,538 | 656,650 | ||
LIABILITIES: | ||||
Accounts payable | 23,757 | 3,495 | ||
Accrued and other short-term liabilities | 79,012 | 78,051 | ||
Receipts in advance and deferred revenue | 55,319 | 53,641 | ||
Other current liabilities | 141,247 | 53,564 | ||
Intercompany payables due to the Company's subsidiaries | 175,178 | 259,009 | ||
Total current liabilities | 474,513 | 447,760 | ||
Other long-term liabilities | 24,575 | 25,262 | ||
Total liabilities | 499,088 | 473,022 | ||
Net revenue | 1,181,354 | 1,063,655 | 1,028,281 | |
Net loss | (78,722) | (90,840) | (32,919) | |
Sohu's VIEs [Member] | ||||
Cash flows: | ||||
Net cash provided by /(used in) operating activities | 113,042 | 29,344 | (715) | |
Net cash provided by /(used in) investing activities | (16,579) | (27,306) | (926) | |
Net cash provided by /(used in) financing activities | 2,855 | 18,535 | 1,476 | |
Changyou's VIEs [Member] | ||||
Cash flows: | ||||
Net cash provided by /(used in) operating activities | (74,415) | 39,827 | 102,086 | |
Net cash provided by /(used in) investing activities | 71,687 | (131,788) | (53,925) | |
Net cash provided by /(used in) financing activities | $ 0 | $ (793) | $ 0 |
VIEs (VIEs Consolidated withi94
VIEs (VIEs Consolidated within Sohu Group, Summary of Significant Agreements Currently in Effect) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders of Sogou Information [Member] | Sogou Technology [Member] | |
Variable Interest Entity [Line Items] | |
Power of attorney term | 10 years |
Shareholders of Tianjin Jinhu [Member] | Video Tianjin [Member] | |
Variable Interest Entity [Line Items] | |
Power of attorney term | 10 years |
Shareholders of Gamease [Member] | AmazGame [Member] | |
Variable Interest Entity [Line Items] | |
Power of attorney term | 10 years |
Percentage of exchange equity interests due to contributions to registered capital of equity | 100.00% |
Shareholders of Guanyou Gamespace [Member] | Gamespace [Member] | |
Variable Interest Entity [Line Items] | |
Power of attorney term | 10 years |
Percentage of exchange equity interests due to contributions to registered capital of equity | 100.00% |
Sogou Information [Member] | Sogou Technology [Member] | |
Variable Interest Entity [Line Items] | |
Exclusive technology consulting and service agreement term | 10 years |
Business cooperation agreement term | 10 years |
Sogou Information [Member] | Shareholders of Sogou Information [Member] | Sogou Technology [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Tianjin Jinhu [Member] | Video Tianjin [Member] | |
Variable Interest Entity [Line Items] | |
Exclusive technology consulting and service agreement term | 10 years |
Tianjin Jinhu [Member] | Shareholders of Tianjin Jinhu [Member] | Video Tianjin [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Gamease [Member] | Shareholders of Gamease [Member] | AmazGame [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Guanyou Gamespace [Member] | Shareholders of Guanyou Gamespace [Member] | Gamespace [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Wuhan Baina Information [Member] | Changyou Star and Yongzhi Yang [Member] | Beijing Baina Technology [Member] | |
Variable Interest Entity [Line Items] | |
Call option agreement, exercise price | At the lower of RMB1.00 (approximately $0.15) or the lowest purchase price permissible under PRC law |
Sohu Internet [Member] | Sohu Era [Member] | |
Variable Interest Entity [Line Items] | |
Exclusive technology consulting and service agreement term | 2 years |
Sohu.com Inc. Shareholders' E95
Sohu.com Inc. Shareholders' Equity (Summary of Sohu.com Inc.'s outstanding shares) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Common stock: | |||
Balance, beginning of year | 38,507 | 38,326 | 38,089 |
Issuance of common stock | 146 | 181 | 237 |
Balance, end of year | 38,653 | 38,507 | 38,326 |
Sohu.com Inc. Shareholders' E96
Sohu.com Inc. Shareholders' Equity (Treasury Stock) (Details) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Sohu [Member] | Common Stock [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Shares repurchased | 0 | 0 |
Sohu.com Inc. Shareholders' E97
Sohu.com Inc. Shareholders' Equity (Sohu's 2000 Stock Incentive Plan, Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 24, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 53,443,000 | $ 74,443,000 | $ 10,429,000 | |
Sohu 2000 Stock Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Maximum term of share rights granted under share incentive plan | 10 years | |||
Plan expiration date | Jan. 24, 2010 | |||
Share-based compensation expense | $ 0 | $ 1,400,000 | $ 2,200,000 | |
Sohu 2000 Stock Incentive Plan [Member] | Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance | 9,500,000 | |||
Accumulated number of shares issued | 9,128,724 |
Sohu.com Inc. Shareholders' E98
Sohu.com Inc. Shareholders' Equity (Sohu's 2000 Stock Incentive Plan, Share Option Activity) (Details) | 12 Months Ended | |||
Dec. 31, 2015USD ($)Years$ / sharesshares | Dec. 31, 2014USD ($)Years$ / sharesshares | Dec. 31, 2013USD ($)shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 53,443,000 | $ 74,443,000 | $ 10,429,000 | |
Sohu 2000 Stock Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 0 | $ 1,400,000 | $ 2,200,000 | |
Sohu 2000 Stock Incentive Plan [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares, Outstanding, Beginning Balance | shares | 110,000 | |||
Number of Shares, Exercised | shares | (110,000) | |||
Number of Shares, Forfeited or expired | shares | 0 | |||
Number of Shares, Outstanding, Ending Balance | shares | 0 | 110,000 | ||
Number of Shares, Vested, Ending balance | shares | 0 | |||
Number of Shares, Exercisable, Ending balance | shares | 0 | |||
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares | $ 19.20 | |||
Weighted Average Exercise Price, Exercised | $ / shares | 19.20 | |||
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares | 0 | $ 19.20 | ||
Weighted Average Exercise Price, Vested | $ / shares | 0 | |||
Weighted Average Exercise Price, Exercisable | $ / shares | $ 0 | |||
Weighted Average Remaining Contractual Life (Years), Outstanding, Beginning balance | Years | 0.41 | |||
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | Years | 0 | 0.41 | ||
Weighted Average Remaining Contractual Life (Years), Vested | Years | 0 | |||
Weighted Average Remaining Contractual Life (Years), Exercisable | Years | 0 | |||
Aggregate Intrinsic Value, Outstanding, Beginning balance | [1] | $ 3,737,000 | ||
Aggregate Intrinsic Value, Outstanding, Ending balance | [1] | 0 | $ 3,737,000 | |
Aggregate Intrinsic Value, Vested | [1] | 0 | ||
Aggregate Intrinsic Value, Exercisable | [1] | 0 | ||
Total intrinsic value of share options exercised | $ 4,500,000 | |||
Number of options granted in period | shares | 0 | 0 | 0 | |
Share-based compensation expense | $ 0 | $ 0 | $ 0 | |
Total cash received from the exercise of share options | $ 2,100,000 | $ 600,000 | $ 1,900,000 | |
[1] | The total intrinsic value of share options exercised for the year ended December 31, 2015 was $4.5 million. |
Sohu.com Inc. Shareholders' E99
Sohu.com Inc. Shareholders' Equity (Sohu's 2000 Stock Incentive Plan, Restricted Share Unit Activity) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 53,443,000 | $ 74,443,000 | $ 10,429,000 |
Sohu 2000 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 0 | 1,400,000 | 2,200,000 |
Sohu 2000 Stock Incentive Plan [Member] | Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 0 | 1,400,000 | 2,200,000 |
Fair value of restricted share units vested | $ 9,300,000 | $ 6,200,000 |
Sohu.com Inc. Shareholders' 100
Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Narrative) (Details) - Sohu 2010 Stock Incentive Plan [Member] - shares | 12 Months Ended | |
Dec. 31, 2015 | Jul. 02, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum term of share rights granted under share incentive plan | 10 years | |
Plan expiration date | Jul. 1, 2020 | |
Common Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance | 1,500,000 | |
Shares available for grant | 351,594 |
Sohu.com Inc. Shareholders' 101
Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Share Option Activity, Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 07, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 53,443 | $ 74,443 | $ 10,429 | |
Sohu 2010 Stock Incentive Plan [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Installments of share options granted | Four equal installments | |||
Award vesting period | 4 years | |||
Share-based compensation expense | $ 25,600 | |||
Sohu 2010 Stock Incentive Plan [Member] | Stock Options [Member] | Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted | 1,068,000 | |||
Exercise prices of option granted | $ 0.001 |
Sohu.com Inc. Shareholders' 102
Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Restricted Share Unit Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 53,443 | $ 74,443 | $ 10,429 |
Sohu 2010 Stock Incentive Plan [Member] | Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Units, Unvested, Beginning balance | 67 | ||
Number of Units, Granted | 17 | ||
Number of Units, Vested | (31) | ||
Number of Units, Forfeited | (21) | ||
Number of Units, Unvested, Ending balance | 32 | 67 | |
Number of Units, Expected to vest thereafter | 23 | ||
Weighted-Average Grant-Date Fair Value, Unvested, Beginning balance | $ 78.16 | ||
Weighted-Average Grant-Date Fair Value, Granted | 53.71 | ||
Weighted-Average Grant-Date Fair Value, Vested | 69.12 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 84.15 | ||
Weighted-Average Grant-Date Fair Value, Unvested, Ending balance | 70.24 | $ 78.16 | |
Weighted-Average Grant-Date Fair Value, Expected to vest thereafter | $ 70.24 | ||
Share-based compensation expense | $ 2,200 | $ 3,000 | 1,600 |
Unrecognized compensation expenses | $ 1,200 | ||
Unrecognized compensation expenses, weighted average period for recognition (in years) | 9 months 25 days | ||
Fair value of restricted share units vested | $ 1,600 | $ 1,200 | $ 1,000 |
Sohu.com Inc. Shareholders' 103
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 22, 2014 | Jun. 15, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 53,443 | $ 74,443 | $ 10,429 | |||
Sogou [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | [1] | $ 10,310 | 61,918 | 5,435 | ||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum term of share rights granted under share incentive plan | 10 years | |||||
Plan expiration date | Oct. 19, 2020 | |||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum term of share rights granted under share incentive plan | 10 years | |||||
Share-based compensation expense | $ 7,300 | $ 31,400 | $ 3,100 | |||
Unrecognized compensation expenses | $ 200 | |||||
Unrecognized compensation expenses, weighted average period for recognition (in years) | 10 months 6 days | |||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Stock Options [Member] | Vesting upon Completion of Event [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Starting date of waiting period for certain events which all installments of remaining options will cease to vest If there has not | Jun. 15, 2013 | |||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Ordinary Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized for issuance | 41,500,000 | |||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Ordinary Shares [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 32,913,825 | |||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Ordinary Shares [Member] | Stock Options [Member] | Vesting upon Service Period and Achievement of Performance Targets [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 24,603,825 | |||||
Installments of share options granted | Four equal installments | |||||
Number of options for which performance targets had been set | 23,017,447 | |||||
Number of options vested and exercisable | 22,659,309 | |||||
Accumulated number of share options exercised | 19,118,430 | |||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Ordinary Shares [Member] | Stock Options [Member] | Vesting upon Completion of Sogou's IPO and Expiration of All Underwriters' Lockup Periods [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 8,310,000 | |||||
Installments of share options granted | Four or five equal installments | |||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Ordinary Shares [Member] | Stock Options [Member] | Vesting upon Completion of Event [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 3,960,000 | |||||
Installments of share options granted | Four equal installments | |||||
[1] | Sogou share-based awards also include compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of Sogou Class A Ordinary Shares that Sogou repurchased in the second quarter of 2014. |
Sohu.com Inc. Shareholders' 104
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Option Activity) (Details) - Sogou [Member] - Sogou 2010 Share Incentive Plan [Member] - Stock Options [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2015Years$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | 19,117 |
Number of Shares, Granted | 1,509 |
Number of Shares, Exercised | (3,826) |
Number of Shares, Forfeited or expired | (4,591) |
Number of Shares, Outstanding, Ending Balance | 12,209 |
Number of Shares, Vested, Ending balance, and expected to vest thereafter | 3,621 |
Number of Shares, Exercisable, Ending balance | 3,541 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares | $ 0.236 |
Weighted Average Exercise Price, Granted | $ / shares | 0.001 |
Weighted Average Exercise Price, Exercised | $ / shares | 0.001 |
Weighted Average Exercise Price, Forfeited or expired | $ / shares | 0.001 |
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares | $ 0.369 |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | Years | 7.06 |
Sohu.com Inc. Shareholders' 105
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Option Assumptions) (Details) - Sogou [Member] - Sogou 2010 Share Incentive Plan [Member] - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average expected option life | 8 years | 7 years | 9 years |
Dividend yield | 0.00% | 0.00% | 0.00% |
Fair value | $ 3.58 | $ 0.67 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 2.48% | 2.62% | 2.10% |
Exercise multiple | 2 | 2 | 2 |
Expected forfeiture rate (post-vesting) | 1.00% | 0.00% | 1.30% |
Volatility rate | 47.00% | 49.00% | 47.00% |
Fair value | $ 5.85 | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 2.77% | 3.05% | 2.87% |
Exercise multiple | 3 | 3 | 3 |
Expected forfeiture rate (post-vesting) | 12.00% | 12.00% | 6.00% |
Volatility rate | 51.00% | 54.00% | 49.00% |
Fair value | $ 6.35 |
Sohu.com Inc. Shareholders' 106
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Option Assumptions, Narrative) (Details) - Sogou [Member] - Sogou 2010 Share Incentive Plan [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contract life of the option | 10 years | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contract life of the option | 10 years | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock Options [Member] | Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 2 | ||
Estimated forfeiture rate | 12.00% | ||
Stock Options [Member] | Management [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 3 | ||
Estimated forfeiture rate | 1.00% |
Sohu.com Inc. Shareholders' 107
Sohu.com Inc. Shareholders' Equity (Sohu Management Sogou Share Option Arrangement, Narrative) (Details) - USD ($) | Apr. 14, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 53,443,000 | $ 74,443,000 | $ 10,429,000 | |||
Sogou [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | [1] | 10,310,000 | 61,918,000 | 5,435,000 | ||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | 1,000,000 | $ 8,900,000 | $ 700,000 | |||
Unrecognized compensation expenses | $ 0 | |||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Ordinary Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized for issuance | 12,000,000 | |||||
Sogou's ordinary shares previously held by Sohu | 8,800,000 | |||||
Sogou's newly-issued shares | 3,200,000 | |||||
Sogou's newly-issued shares, price per share | $ 0.625 | |||||
Sogou's newly-issued shares, value | $ 2,000,000 | |||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Ordinary Shares [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 10,724,500 | |||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Ordinary Shares [Member] | Stock Options [Member] | Vesting upon Completion of Sogou's IPO and Expiration of All Underwriters' Lockup Periods [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 2,400,000 | |||||
Installments of share options granted | Five equal installments | |||||
Share-based compensation expense | $ 0 | |||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Ordinary Shares [Member] | Stock Options [Member] | Board of Directors [Member] | Vesting upon Service Period and Achievement of Performance Targets [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options vested and exercisable | 15,000 | |||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Ordinary Shares [Member] | Stock Options [Member] | Management and Key Employees [Member] | Vesting upon Service Period and Achievement of Performance Targets [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 8,309,500 | |||||
Installments of share options granted | Four equal installments | |||||
Number of options for which performance targets had been set | 8,232,000 | |||||
Number of options vested and exercisable | 8,142,240 | |||||
Accumulated number of share options exercised | 6,979,700 | |||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Ordinary Shares [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fixed exercise price of ordinary share | $ 0.001 | |||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Ordinary Shares [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fixed exercise price of ordinary share | $ 0.625 | |||||
[1] | Sogou share-based awards also include compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of Sogou Class A Ordinary Shares that Sogou repurchased in the second quarter of 2014. |
Sohu.com Inc. Shareholders' 108
Sohu.com Inc. Shareholders' Equity (Sohu Management Sogou Share Option Arrangement, Share Option Activity) (Details) - Sogou [Member] - Sohu Management Sogou Share Option Arrangement [Member] - Stock Options [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2015Years$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | 4,165 |
Number of Shares, Granted | 92 |
Number of Shares, Exercised | (587) |
Number of Shares, Forfeited or expired | (6) |
Number of Shares, Outstanding, Ending Balance | 3,664 |
Number of Shares, Vested, Ending balance, and expected to vest thereafter | 1,175 |
Number of Shares, Exercisable, Ending balance | 1,175 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares | $ 0.625 |
Weighted Average Exercise Price, Granted | $ / shares | 0.524 |
Weighted Average Exercise Price, Exercised | $ / shares | 0.622 |
Weighted Average Exercise Price, Forfeited or expired | $ / shares | 0.625 |
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares | $ 0.623 |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | Years | 6.67 |
Sohu.com Inc. Shareholders' 109
Sohu.com Inc. Shareholders' Equity (Sohu Management Sogou Share Option Arrangement, Share Option Assumptions) (Details) - Sogou [Member] - Sohu Management Sogou Share Option Arrangement [Member] - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected forfeiture rate (post-vesting) | 0.00% | ||
Weighted average expected option life | 8 years | 7 years | 9 years |
Dividend yield | 0.00% | 0.00% | 0.00% |
Fair value | $ 5.23 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 2.67% | 2.62% | 2.10% |
Exercise multiple | 2 | 2 | 2 |
Expected forfeiture rate (post-vesting) | 0.00% | 0.00% | |
Volatility rate | 50.00% | 52.00% | 47.00% |
Fair value | $ 2.96 | $ 0.27 | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 3.01% | 2.93% | 2.87% |
Exercise multiple | 3 | 3 | 3 |
Expected forfeiture rate (post-vesting) | 8.00% | 8.00% | |
Volatility rate | 53.00% | 54.00% | 48.00% |
Fair value | $ 7.03 | $ 0.38 |
Sohu.com Inc. Shareholders' 110
Sohu.com Inc. Shareholders' Equity (Sogou Inc. Share-based Awards, Option Modification) (Details) - Sogou [Member] | 12 Months Ended |
Dec. 31, 2015USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Incremental compensation expense | $ | $ 0 |
Ordinary Shares [Member] | Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Accumulated number of share options early exercised | 11,701,000 |
Sogou 2010 Share Incentive Plan [Member] | Ordinary Shares [Member] | Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Accumulated number of share options early exercised | 11,660,200 |
Sohu Management Sogou Share Option Arrangement [Member] | Ordinary Shares [Member] | Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Accumulated number of share options early exercised | 40,800 |
Sohu.com Inc. Shareholders' 111
Sohu.com Inc. Shareholders' Equity (Tencent Share-based Awards Granted to Employees Who Transferred to Sogou with Soso Search-related Businesses) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
May. 31, 2014 | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 53,443 | $ 74,443 | $ 10,429 | ||
Tencent [Member] | Ordinary Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock split, conversion ratio | 5 | ||||
Sogou [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | [1] | 10,310 | 61,918 | 5,435 | |
Sogou [Member] | Tencent [Member] | Tencent Share-based Awards Related to Soso [Member] | Restricted Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | 2,000 | $ 4,900 | $ 1,600 | ||
Unrecognized compensation expenses | $ 1,000 | ||||
Unrecognized compensation expenses, weighted average period for recognition (in years) | 1 year 11 months 8 days | ||||
Sogou [Member] | Tencent [Member] | Tencent Share-based Awards Related to Soso [Member] | Ordinary Shares [Member] | Restricted Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for issuance | shares | 169,550 | ||||
[1] | Sogou share-based awards also include compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of Sogou Class A Ordinary Shares that Sogou repurchased in the second quarter of 2014. |
Sohu.com Inc. Shareholders' 112
Sohu.com Inc. Shareholders' Equity (Changyou's 2008 Share Incentive Plan) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2009shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2008shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ | $ 53,443 | $ 74,443 | $ 10,429 | ||
Changyou [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ | $ 15,024 | 4,087 | 1,195 | ||
Changyou [Member] | Ordinary Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock split, conversion ratio | 10 | ||||
Changyou [Member] | Changyou's 2008 Share Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Maximum term of share rights granted under share incentive plan | 10 years | ||||
Plan expiration date | Aug. 31, 2018 | ||||
Share-based compensation expense | $ | $ (200) | $ 1,300 | $ 1,200 | ||
Changyou [Member] | Changyou's 2008 Share Incentive Plan [Member] | Ordinary Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted | 15,000,000 | ||||
Changyou [Member] | Changyou's 2008 Share Incentive Plan [Member] | Ordinary Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for future issuance | 2,000,000 | ||||
Shares reserved for future issuance as result of stock split | 20,000,000 | ||||
Changyou [Member] | Changyou's 2008 Share Incentive Plan [Member] | Ordinary Shares [Member] | Restricted Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted | 4,614,098 |
Sohu.com Inc. Shareholders' 113
Sohu.com Inc. Shareholders' Equity (Share-based Awards Granted before Changyou's IPO, Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 53,443,000 | $ 74,443,000 | $ 10,429,000 |
Changyou [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 15,024,000 | $ 4,087,000 | $ 1,195,000 |
Changyou [Member] | Changyou's Share-based Awards Granted before IPO [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 0 |
Sohu.com Inc. Shareholders' 114
Sohu.com Inc. Shareholders' Equity (Share-based Awards Granted after Changyou's IPO, Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 53,443 | $ 74,443 | $ 10,429 |
Changyou [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 15,024 | 4,087 | 1,195 |
Changyou [Member] | Changyou's Share-based Awards Granted after IPO [Member] | Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Share-based compensation expense | $ (200) | 1,300 | 1,500 |
Unrecognized compensation expenses | $ 100 | ||
Unrecognized compensation expenses, weighted average period for recognition (in years) | 10 months 10 days | ||
Fair value of restricted share units vested | $ 900 | $ 1,100 | $ 5,500 |
Changyou [Member] | Changyou's Share-based Awards Granted after IPO [Member] | Ordinary Shares [Member] | Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares or units granted | 1,581,226 |
Sohu.com Inc. Shareholders' 115
Sohu.com Inc. Shareholders' Equity (Share-based Awards Granted after Changyou's IPO, Restricted Share Unit Activity) (Details) - Changyou [Member] - Changyou's Share-based Awards Granted after IPO [Member] - Restricted Share Units [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Units, Unvested, Beginning balance | shares | 220 |
Number of Units, Granted | shares | 0 |
Number of Units, Vested | shares | (95) |
Number of Units, Forfeited | shares | (105) |
Number of Units, Unvested, Ending balance | shares | 20 |
Number of Units, Expected to vest thereafter | shares | 20 |
Weighted-Average Grant-Date Fair Value, Unvested, Beginning balance | $ / shares | $ 14.09 |
Weighted-Average Grant-Date Fair Value, Granted | $ / shares | 0 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | 14.14 |
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares | 14.02 |
Weighted-Average Grant-Date Fair Value, Unvested, Ending balance | $ / shares | 14.25 |
Weighted-Average Grant-Date Fair Value, Expected to vest thereafter | $ / shares | $ 14.25 |
Sohu.com Inc. Shareholders' 116
Sohu.com Inc. Shareholders' Equity (Changyou 2014 Share Incentive Plan, Narrative) (Details) | 12 Months Ended | ||||||
Dec. 31, 2015USD ($)Yearsshares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jun. 01, 2015$ / sharesshares | Feb. 16, 2015$ / sharesshares | Nov. 02, 2014shares | Jun. 27, 2014shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ | $ 53,443,000 | $ 74,443,000 | $ 10,429,000 | ||||
Changyou [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ | $ 15,024,000 | 4,087,000 | $ 1,195,000 | ||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for grant | 2,580,000 | ||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares or units granted | 1,998,000 | 2,416,000 | |||||
Installments of share options granted | Four equal installments | ||||||
Award vesting period | 4 years | ||||||
Number of share options vested | 450,000 | ||||||
Number of share options vested and remained exercisable | 450,000 | ||||||
Weighted average remaining contractual life | Years | 8.84 | ||||||
Aggregate intrinsic value | $ | $ 5,600,000 | ||||||
Share-based compensation expense | $ | 15,200,000 | 2,600,000 | |||||
Total fair values of share options vested | $ | $ 4,700,000 | $ 0 | |||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Class A Restricted Share Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 4 years | ||||||
Share-based compensation expense | $ | $ (17,000) | ||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares reserved for future issuance | 6,000,000 | 2,000,000 | |||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of Class A restricted share units converted to options | 2,400,000 | ||||||
Exercise prices of option granted | $ / shares | $ 0.01 | ||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Class A Restricted Share Units [Member] | Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares or units granted | 1,998,000 | ||||||
Exercise prices of option granted | $ / shares | $ 0.01 | ||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Class A Restricted Share Units [Member] | Class A Restricted Share Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares or units granted | 16,000 | ||||||
Unrecognized compensation expenses | $ | $ 0 |
Sohu.com Inc. Shareholders' 117
Sohu.com Inc. Shareholders' Equity (Changyou 2014 Share Incentive Plan, Restricted Share Unit Activity) (Details) - Changyou [Member] - Changyou 2014 Share Incentive Plan [Member] - Restricted Share Units [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Units, Unvested, Beginning balance | 16 |
Number of Units, Granted | 0 |
Number of Units, Vested | 0 |
Number of Units, Forfeited | (16) |
Number of Units, Unvested, Ending balance | 0 |
Number of Units, Expected to vest thereafter | 0 |
Weighted-Average Grant-Date Fair Value, Unvested, Beginning balance | $ / shares | $ 12.64 |
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares | $ (12.64) |
Sohu.com Inc. Shareholders' 118
Sohu.com Inc. Shareholders' Equity (Sohu Video Share-based Awards, Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 04, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 53,443 | $ 74,443 | $ 10,429 | |
Sohu Video [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 298 | 4,028 | $ 0 | |
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum term of share rights granted under share incentive plan | 10 years | |||
Plan expiration date | Jan. 3, 2021 | |||
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Ordinary Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for future issuance | 25,000,000 | |||
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Ordinary Shares [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted | 16,368,200 | |||
Installments of share options granted | Four equal installments | |||
Number of options vested | 4,972,800 | |||
Share-based compensation expense | $ 300 | $ 4,000 |
Sohu.com Inc. Shareholders' 119
Sohu.com Inc. Shareholders' Equity (Sohu Video Share-based Awards, Share Option Assumptions) (Details) - Sohu Video [Member] - Video 2011 Share Incentive Plan [Member] - Stock Options [Member] | 12 Months Ended |
Dec. 31, 2015$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average risk-free interest rate | 2.54% |
Exercise multiple | 2.8 |
Expected forfeiture rate (post-vesting) | 10.00% |
Weighted average expected option life | 6 years |
Volatility rate | 57.70% |
Dividend yield | 0.00% |
Fair value | $ 0.87 |
Changyou Share Repurchase Pr120
Changyou Share Repurchase Program (Details) - Changyou [Member] - Changyou Share Repurchase Program Authorized in 2013 [Member] - USD ($) $ in Millions | Jul. 27, 2013 | Dec. 31, 2015 | Jul. 26, 2015 |
Equity, Class of Treasury Stock [Line Items] | |||
Share repurchase program, aggregate cost | $ 14.2 | ||
Aggregate repurchased shares, cost | $ 35 | ||
ADS [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Share repurchase program, authorized amount | $ 100 | ||
Share repurchase program, period in force | 2 years | ||
Share repurchase program, shares repurchased | 610,046 | ||
Aggregate repurchased shares | 1,364,846 | ||
Ordinary Shares [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Share repurchase program, shares repurchased | 1,220,092 | ||
Aggregate repurchased shares | 2,729,692 |
Significant Business Transac121
Significant Business Transactions (Changyou-related Transactions) (Details) - USD ($) $ in Thousands | 8 Months Ended | 12 Months Ended | ||
Aug. 17, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal gain recognized in business transaction | $ 55,139 | $ 0 | $ 0 | |
Changyou-related Transactions [Member] | ||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Aggregate cash consideration | $ 205,000 | |||
Disposal gain recognized in business transaction | $ 55,100 | |||
Changyou-related Transactions [Member] | Shenzhen Seven Road, Changyou My Sdn. Bhd and Changyou.com (UK) [Member] | ||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income before tax of the disposal group | $ 23,300 | $ 41,100 | $ 75,900 |
Significant Business Transac122
Significant Business Transactions (Sogou Transactions, Newly-issued Series A Preferred Shares and Sogou-Tencent Transactions) (Details) shares in Millions, $ in Millions | Dec. 02, 2013USD ($) | Sep. 17, 2013USD ($) | Sep. 16, 2013USD ($)Designees | Sep. 30, 2015USD ($)shares | Jun. 30, 2014USD ($)shares | Dec. 31, 2015 | Mar. 31, 2014USD ($)shares | Jun. 29, 2012USD ($)shares | Oct. 22, 2010USD ($)shares |
Sogou [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Equity interest held by parent company | 36.00% | ||||||||
Voting power held by parent pursuant to Shareholders Agreement | 52.00% | ||||||||
Sogou [Member] | Series A Preferred Shares [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Special dividend paid to Series A Preferred Shareholders by Sogou | $ 300.9 | ||||||||
Sogou [Member] | Series A Preferred Shares [Member] | Alibaba Investment Limited [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Newly-issued Series A Preferred Shares, shares | shares | 24 | ||||||||
Newly-issued Series A Preferred Shares, value | $ 15 | ||||||||
Purchase of Series A Preferred Shares, shares | shares | 24 | ||||||||
Purchase of Series A Preferred Shares, aggregate purchase price | $ 25.8 | ||||||||
Sogou [Member] | Series A Preferred Shares [Member] | China Web [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Newly-issued Series A Preferred Shares, shares | shares | 14.4 | ||||||||
Newly-issued Series A Preferred Shares, value | $ 9 | ||||||||
Purchase of Series A Preferred Shares, shares | shares | 14.4 | ||||||||
Purchase of Series A Preferred Shares, aggregate purchase price | $ 47.3 | ||||||||
Special dividend paid to Series A Preferred Shareholders by Sogou | 96.7 | ||||||||
Sogou [Member] | Series A Preferred Shares [Member] | Photon [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Newly-issued Series A Preferred Shares, shares | shares | 38.4 | ||||||||
Newly-issued Series A Preferred Shares, value | $ 24 | ||||||||
Purchase of Series A Preferred Shares, shares | shares | 6.4 | ||||||||
Purchase of Series A Preferred Shares, aggregate purchase price | $ 21 | ||||||||
Special dividend paid to Series A Preferred Shareholders by Sogou | 43 | ||||||||
Sogou [Member] | Series A Preferred Shares [Member] | Sohu Search [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Purchase of Series A Preferred Shares, shares | shares | 24 | ||||||||
Purchase of Series A Preferred Shares, aggregate purchase price | $ 78.8 | ||||||||
Special dividend paid to Series A Preferred Shareholders by Sogou | $ 161.2 | ||||||||
Sogou [Member] | Series B Preferred Shares and Class B Ordinary Shares [Member] | Tencent [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Cash proceeds from Tencent | $ 448 | ||||||||
Sogou [Member] | Class A Ordinary Shares [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Shares repurchased | shares | 4.2 | ||||||||
Aggregate purchase price | $ 41.6 | ||||||||
Sogou Information [Member] | Tencent [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Cash proceeds from Tencent | $ 1.5 | ||||||||
Ownership percentage held by Tencent | 45.00% | ||||||||
Sogou Information [Member] | Series A Preferred Shares [Member] | Tencent [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of designees to elect directors by shareholder | Designees | 2 | ||||||||
Sogou Information [Member] | Series A Preferred Shares [Member] | Sohu Search [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of designees to elect directors by shareholder | Designees | 3 |
Significant Business Transac123
Significant Business Transactions (Sogou Transactions, Sohu's Shareholding in Sogou) (Details) - Sogou [Member] | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Shareholding in Independently Listed Subsidiary [Line Items] | |
Impact on Sohu Group's basic net income per share | $ / shares | $ 0 |
Ordinary Shares and Preferred Shares [Member] | |
Shareholding in Independently Listed Subsidiary [Line Items] | |
Shares, outstanding | 330,870,013 |
Sohu [Member] | Class A Ordinary Shares [Member] | |
Shareholding in Independently Listed Subsidiary [Line Items] | |
Shares, outstanding | 132,230,550 |
Shares to be purchased by Sohu management and key employees | 5,030,550 |
Photon [Member] | Series A Preferred Shares [Member] | |
Shareholding in Independently Listed Subsidiary [Line Items] | |
Shares, outstanding | 32,000,000 |
Tencent [Member] | Class A Ordinary Shares [Member] | |
Shareholding in Independently Listed Subsidiary [Line Items] | |
Shares, outstanding | 6,757,875 |
Tencent [Member] | Series B Preferred Shares [Member] | |
Shareholding in Independently Listed Subsidiary [Line Items] | |
Shares, outstanding | 65,431,579 |
Tencent [Member] | Non-voting Class B Ordinary Shares [Member] | |
Shareholding in Independently Listed Subsidiary [Line Items] | |
Shares, outstanding | 79,368,421 |
Various Employees of Sogou and Sohu [Member] | Ordinary Shares and Preferred Shares [Member] | |
Shareholding in Independently Listed Subsidiary [Line Items] | |
Shares, outstanding | 15,081,588 |
Significant Business Transac124
Significant Business Transactions (Sogou Transactions, Terms of Sogou Preferred Shares) (Details) - Sogou [Member] | 12 Months Ended |
Dec. 31, 2015$ / shares | |
Series A Preferred Shares [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Dividend rate per annum per Preferred Share | $ 0.0375 |
Preferred share conversion price | 0.625 |
Series A Preferred Shares [Member] | Maximum [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Preferred share conversion price | 0.625 |
Series B Preferred Shares [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Dividend rate per annum per Preferred Share | $ 0.411 |
Times over original sales price preferred shareholders entitled to receive in event of liquidation | 1.3 |
Preferred share conversion price | $ 7.267 |
Series B Preferred Shares [Member] | Minimum [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Liquidation Preference Price | 6.847 |
Series B Preferred Shares [Member] | Maximum [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Preferred share conversion price | $ 7.267 |
Business Combinations (Shi Ji G
Business Combinations (Shi Ji Guang Su, Narrative) (Details) - Sogou [Member] - Shi Ji Guang Su [Member] - USD ($) $ in Millions | 16 Months Ended | |
Dec. 31, 2014 | Sep. 16, 2013 | |
Business Acquisition [Line Items] | ||
Cash consideration | $ 27.6 | |
Consideration paid | $ 27.6 |
Business Combinations (Shi J126
Business Combinations (Shi Ji Guang Su, Allocation of Consideration of Assets Acquired and Liabilities Assumed Based on Fair Values) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 16, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 154,219 | $ 303,426 | $ 208,795 | |
Sogou [Member] | Shi Ji Guang Su [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 3,249 | |||
Receivables | 7,967 | |||
Fixed assets acquired | 21,964 | |||
Goodwill | 4,199 | |||
Identifiable intangible assets acquired | 5,686 | |||
Liabilities | (15,447) | |||
Total | $ 27,618 |
Business Combinations (MoboTap,
Business Combinations (MoboTap, Narrative) (Details) - USD ($) $ in Thousands | Jul. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 154,219 | $ 303,426 | $ 208,795 | |
Impairment loss | $ 33,801 | |||
Intangible assets impairment losses | 19,900 | |||
Changyou [Member] | MoboTap [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of acquired equity interest | 51.00% | |||
Cash consideration | $ 90,830 | |||
Percentage of equity interests, Changyou has the right to purchase from noncontrolling shareholders | 10.00% | |||
Percentage below IPO price, Changyou has the right to purchase from noncontrolling shareholders | 20.00% | |||
Percentage of equity interests, noncontrolling shareholders have right to put to controlling shareholder under specific conditions | 15.00% | |||
Aggregate price of equity interests, noncontrolling shareholders have right to put to controlling shareholder under specific conditions | $ 53,000 | |||
Goodwill | $ 113,040 | |||
Impairment loss | 29,600 | |||
Intangible assets impairment losses | $ 8,900 | |||
Changyou [Member] | MoboTap [Member] | User base [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful lives of acquired identifiable intangible assets | 2 years 4 months 24 days | |||
Changyou [Member] | MoboTap [Member] | Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful lives of acquired identifiable intangible assets | 5 years 4 months 24 days | |||
Changyou [Member] | MoboTap [Member] | Trademarks [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful lives of acquired identifiable intangible assets | 10 years 4 months 24 days |
Business Combinations (Allocati
Business Combinations (Allocation of Consideration of Assets Acquired and Liabilities Assumed Based on Their Fair Values) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 154,219 | $ 303,426 | $ 208,795 | |
Changyou [Member] | MoboTap [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 90,830 | |||
Repurchase option | 793 | |||
Identifiable intangible assets acquired | 27,000 | |||
Goodwill | 113,040 | |||
Other assets | 6,714 | |||
Put option | (298) | |||
Liabilities assumed | (2,995) | |||
Noncontrolling interest | (53,424) | |||
Total | $ 90,830 |
Business Combinations (Doyo, Na
Business Combinations (Doyo, Narrative) (Details) - USD ($) $ in Thousands | Nov. 29, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 154,219 | $ 303,426 | $ 208,795 | |
Changyou [Member] | Doyo [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of acquired equity interest | 100.00% | |||
Fixed cash consideration | $ 6,521 | |||
Variable cash consideration, maximum | 7,300 | |||
Fair value of contingent consideration | 4,785 | |||
Goodwill | $ 7,626 |
Business Combinations (Doyo, Al
Business Combinations (Doyo, Allocation of Consideration of Assets Acquired and Liabilities Assumed Based on Fair Values) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 29, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 154,219 | $ 303,426 | $ 208,795 | |
Changyou [Member] | Doyo [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 6,521 | |||
Contingent consideration | 4,785 | |||
Total consideration | 11,306 | |||
Tangible assets | 1,324 | |||
Identifiable intangible assets acquired | 3,620 | |||
Goodwill | 7,626 | |||
Liabilities assumed | (1,264) | |||
Total | $ 11,306 |
Business Combinations (Sell Equ
Business Combinations (Sell Equity Interests of Doyo, Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Business Acquisition, Contingent Consideration [Line Items] | ||
Goodwill impairment losses | $ 33,801 | |
Changyou [Member] | Doyo [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Aggregate cash consideration | $ 2,900 | |
Forgiveness of contingent consideration | 6,000 | |
Goodwill impairment losses | $ 1,900 |
Business Combinations (RaidCall
Business Combinations (RaidCall, Narrative) (Details) - USD ($) $ in Thousands | Dec. 24, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 154,219 | $ 303,426 | $ 208,795 | |
Changyou [Member] | TalkTalk [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of acquired equity interest | 62.50% | |||
Cash consideration | $ 47,627 | |||
Cash consideration paid for purchase of ordinary shares of TalkTalk held by Kalends Group | 27,600 | |||
Cash consideration injected for newly-issued ordinary shares of TalkTalk | $ 20,000 | |||
Percentage of equity interests reserved for grants of equity incentive awards | 15.00% | |||
Ownership percentage held by noncontrolling owners | 22.50% | |||
Goodwill | $ 33,740 |
Business Combinations (RaidC133
Business Combinations (RaidCall, Allocation of Consideration of Assets Acquired and Liabilities Assumed Based on Fair Values) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 24, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 154,219 | $ 303,426 | $ 208,795 | |
Changyou [Member] | TalkTalk [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 47,627 | |||
Tangible assets | 20,016 | |||
Identifiable intangible assets acquired | 17,888 | |||
Goodwill | 33,740 | |||
Fair value of noncontrolling interest | (17,172) | |||
Liabilities assumed | (6,845) | |||
Total | $ 47,627 |
Noncontrolling Interest (Narrat
Noncontrolling Interest (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest in consolidated balance sheets | $ 489,730 | $ 487,245 | |
Net income/ (loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | 146,542 | (32,309) | $ 82,044 |
Sogou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest in consolidated balance sheets | 125,314 | 145,538 | |
Net income/ (loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ 101,656 | $ (14,202) | $ (5,884) |
Percentage of net income/ (loss) attributable to noncontrolling interest recognized in consolidated statements of comprehensive income | 31.00% | 32.00% | 32.00% |
Changyou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest in consolidated balance sheets | $ 364,416 | $ 341,707 | |
Percentage of noncontrolling interest recognized in consolidated balance sheets | 31.00% | 32.00% | |
Net income/ (loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ 44,886 | $ (18,873) | $ 87,289 |
Noncontrolling Interest (Noncon
Noncontrolling Interest (Noncontrolling Interest in Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest in consolidated balance sheets | $ 489,730 | $ 487,245 |
Sogou [Member] | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest in consolidated balance sheets | 125,314 | 145,538 |
Changyou [Member] | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest in consolidated balance sheets | $ 364,416 | $ 341,707 |
Noncontrolling Interest (Non136
Noncontrolling Interest (Noncontrolling Interest in Consolidated Statements of Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Noncontrolling Interest [Line Items] | |||
Net income/ (loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ 146,542 | $ (32,309) | $ 82,044 |
Sogou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Net income/ (loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | 101,656 | (14,202) | (5,884) |
Changyou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Net income/ (loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | 44,886 | (18,873) | 87,289 |
Others [Member] | |||
Noncontrolling Interest [Line Items] | |||
Net income/ (loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ 0 | $ 766 | $ 639 |
Net Income _(Loss) per Share (N
Net Income /(Loss) per Share (Narrative) (Details) - USD ($) | Sep. 17, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Mar. 31, 2014 |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | ||||||
Special dividend distributed to holders of Series A Preferred Shares other than Sohu | $ 0 | $ 0 | $ 139,700,000 | |||
Sogou [Member] | ||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | ||||||
Incremental dilution | $ 0 | $ (3,919,000) | $ (2,138,000) | |||
Sogou [Member] | Series A Preferred Shares [Member] | ||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | ||||||
Special dividend distributed to holders of Series A Preferred Shares other than Sohu | $ 139,700,000 | |||||
Special dividend distributed to holders of Series A Preferred Shares other than Sohu, contributed by Sohu | $ 82,400,000 | |||||
Sogou [Member] | China Web [Member] | ||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | ||||||
Deemed dividend | $ 27,700,000 | |||||
Sogou [Member] | China Web [Member] | Series A Preferred Shares [Member] | ||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | ||||||
Purchase of Series A Preferred Shares, shares | 14,400,000 | |||||
Purchase of Series A Preferred Shares, aggregate purchase price | $ 47,300,000 | |||||
Sogou [Member] | Photon [Member] | ||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | ||||||
Deemed dividend | $ 11,900,000 | |||||
Sogou [Member] | Photon [Member] | Series A Preferred Shares [Member] | ||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | ||||||
Purchase of Series A Preferred Shares, shares | 6,400,000 | |||||
Purchase of Series A Preferred Shares, aggregate purchase price | $ 21,000,000 | |||||
Potential common shares issuable upon exercise or settlement of share-based awards [Member] | ||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | ||||||
Anti-dilutive potential common shares | 55,870 | |||||
Potential common shares issuable upon exercise or settlement of share-based awards [Member] | Sogou [Member] | ||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | ||||||
Incremental dilution | $ 0 |
Net Income _(Loss) per Share (C
Net Income /(Loss) per Share (Calculation of Sohu Group's Basic and Diluted Net Loss per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: | |||
Net loss attributable to Sohu.com Inc., basic (after subtracting the dividend or deemed dividend to noncontrolling Sogou Series A Preferred shareholders) | $ (49,598) | $ (166,657) | $ (15,298) |
Effect of dilutive securities: | |||
Net loss attributable to Sohu.com Inc., diluted | $ (50,829) | $ (170,576) | $ (18,262) |
Denominator: | |||
Weighted average basic common shares outstanding | 38,598 | 38,468 | 38,255 |
Effect of dilutive securities: | |||
Share options and restricted share units | 0 | 0 | 247 |
Weighted average diluted common shares outstanding | 38,598 | 38,468 | 38,502 |
Basic net loss per share attributable to Sohu.com Inc. | $ (1.28) | $ (4.33) | $ (0.40) |
Diluted net loss per share attributable to Sohu.com Inc. | $ (1.32) | $ (4.43) | $ (0.47) |
Sogou [Member] | |||
Effect of dilutive securities: | |||
Incremental dilution | $ 0 | $ (3,919) | $ (2,138) |
Changyou [Member] | |||
Effect of dilutive securities: | |||
Incremental dilution | $ (1,231) | $ 0 | $ (826) |
China Contribution Plan (Detail
China Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
China Contribution Plan [Abstract] | |||
Annual Contributions | $ 132.6 | $ 134.2 | $ 100.7 |
Profit Appropriation (Details)
Profit Appropriation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Profit Appropriation [Line Items] | |||
Portion of after-tax profit to be allocated to general reserve under PRC Law | 10.00% | ||
Required general reserve /registered capital ratio to de-force compulsory net profit allocation to general reserve | 50.00% | ||
Amount of profits appropriated to the general reserve fund and the statutory surplus fund | $ 7.7 | $ 4.9 | $ 3 |
Amount of profits contributed to theses funds | $ 46.8 | $ 39 | |
China Foreign Investment Enterprises Law [Member] | |||
Profit Appropriation [Line Items] | |||
Portion of after-tax profit to be allocated to general reserve under PRC Law | 10.00% | ||
Required general reserve /registered capital ratio to de-force compulsory net profit allocation to general reserve | 50.00% | ||
China Company Law [Member] | |||
Profit Appropriation [Line Items] | |||
Portion of after-tax profit to be allocated to general reserve under PRC Law | 10.00% | ||
Required general reserve /registered capital ratio to de-force compulsory net profit allocation to general reserve | 50.00% |
Concentration Risks (Details)
Concentration Risks (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)institutions | Dec. 31, 2014USD ($)institutions | Dec. 31, 2013USD ($) | |
Customer Risk [Member] | Total Revenue [Member] | TLBB [Member] | |||
Concentration Risk [Line Items] | |||
Revenues from clients that individually represent greater than 10% of total revenues | $ | $ 0 | $ 0 | $ 0 |
Product Risk [Member] | Total Revenue [Member] | TLBB [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 16.00% | ||
Product Risk [Member] | Online Game Revenue [Member] | TLBB [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 50.00% | ||
Credit risk [Member] | Cash and Cash Equivalents [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 59.00% | 46.00% | |
Number of financial institutions cash and cash equivalents concentrated held in | institutions | 16 | 15 | |
Maximum percentage of Sohu's cash and bank deposits in any single financial institution | 28.00% | 24.00% |
Restricted Net Assets (Details)
Restricted Net Assets (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Restricted Net Assets [Abstract] | |
Portion of net after-tax income to be allocated to statutory surplus reserve fund | 10.00% |
Percentage rate of registered capital, reserve funds reached, appropriation not required | 50.00% |
Schedule I - Condensed Finan143
Schedule I - Condensed Financial Information of Registrant (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ||||
Cash and cash equivalents | $ 1,245,205 | $ 876,340 | $ 1,287,288 | $ 833,535 |
Prepaid and other current assets | 158,890 | 116,704 | ||
Total current assets | 2,079,512 | 1,697,208 | ||
Total assets | 3,042,194 | 2,867,009 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Accrued liabilities | 309,657 | 239,231 | ||
Total current liabilities | 1,264,579 | 794,285 | ||
Shareholders' equity: | ||||
Common stock: $0.001 par value per share (75,400 shares authorized; 38,507 shares and 38,653 shares, respectively, issued and outstanding as of December 31, 2014 and 2015) | 45 | 44 | ||
Additional paid-in capital | 798,357 | 650,148 | ||
Treasury stock (5,889 shares as of both December 31, 2014 and 2015) | (143,858) | (143,858) | ||
Accumulated other comprehensive income | 50,151 | 109,402 | ||
Retained earnings | 536,327 | 585,925 | ||
Total shareholders' equity | 1,241,022 | 1,201,661 | ||
Total liabilities and shareholders' equity | 3,042,194 | 2,867,009 | ||
Sohu.com Inc. [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 16,096 | 23,189 | $ 35,659 | $ 22,858 |
Prepaid and other current assets | 8,320 | 1,186 | ||
Due from subsidiaries and variable interest entities | 3,806 | 3,806 | ||
Total current assets | 28,222 | 28,181 | ||
Interests in subsidiaries and variable interest entities | 1,232,327 | 1,176,914 | ||
Total assets | 1,260,549 | 1,205,095 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Accrued liabilities | 19,527 | 3,434 | ||
Total current liabilities | 19,527 | 3,434 | ||
Shareholders' equity: | ||||
Common stock: $0.001 par value per share (75,400 shares authorized; 38,507 shares and 38,653 shares, respectively, issued and outstanding as of December 31, 2014 and 2015) | 45 | 44 | ||
Additional paid-in capital | 798,357 | 650,148 | ||
Treasury stock (5,889 shares as of both December 31, 2014 and 2015) | (143,858) | (143,858) | ||
Accumulated other comprehensive income | 50,151 | 109,402 | ||
Retained earnings | 536,327 | 585,925 | ||
Total shareholders' equity | 1,241,022 | 1,201,661 | ||
Total liabilities and shareholders' equity | $ 1,260,549 | $ 1,205,095 |
Schedule I - Condensed Finan144
Schedule I - Condensed Financial Information of Registrant (Condensed Balance Sheets) (Parenthetical) (Details) - $ / shares shares in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 75,400 | 75,400 | ||
Common stock, shares outstanding (in shares) | 38,653 | 38,507 | 38,326 | 38,089 |
Treasury stock, shares (in shares) | 5,889 | 5,889 | ||
Sohu.com Inc. [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 75,400 | 75,400 | ||
Common stock, shares outstanding (in shares) | 38,653 | 38,507 | ||
Treasury stock, shares (in shares) | 5,889 | 5,889 |
Schedule I - Condensed Finan145
Schedule I - Condensed Financial Information of Registrant (Condensed Statements of Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Statement of Income Captions [Line Items] | |||
Revenues | $ 1,937,091 | $ 1,673,077 | $ 1,400,274 |
Cost of revenues | 859,064 | 685,634 | 480,050 |
Gross profit | 1,078,027 | 987,443 | 920,224 |
Operating expenses: | |||
General and administrative | 173,160 | 204,325 | 108,970 |
Operating loss | 82,469 | (204,963) | 183,481 |
Other expense | 74,526 | 9,959 | 12,721 |
Income /(loss) before income tax expense | 185,791 | (165,169) | 217,371 |
Income tax expense | 76,936 | 6,050 | 50,422 |
Net income /(loss) | (49,598) | (166,657) | (15,298) |
Other comprehensive income /(loss) | (87,655) | (8,390) | 47,125 |
Comprehensive income /(loss) | (108,849) | (173,559) | 21,464 |
Sohu.com Inc. [Member] | |||
Condensed Statement of Income Captions [Line Items] | |||
Revenues | 0 | 0 | 0 |
Cost of revenues | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 |
Operating expenses: | |||
General and administrative | 22,091 | 7,829 | 10,747 |
Operating loss | (22,091) | (7,829) | (10,747) |
Equity in profit /(loss) of subsidiaries and variable interest entities | (4,430) | (129,324) | 90,676 |
Other expense | (12) | (28) | 0 |
Interest income | 95 | 76 | 36 |
Income /(loss) before income tax expense | (26,438) | (137,105) | 79,965 |
Income tax expense | 11,249 | 1,805 | 12,840 |
Net income /(loss) | (37,687) | (138,910) | 67,125 |
Other comprehensive income /(loss) | (59,251) | (6,903) | 36,763 |
Comprehensive income /(loss) | $ (96,938) | $ (145,813) | $ 103,888 |
Schedule I - Condensed Finan146
Schedule I - Condensed Financial Information of Registrant (Condensed Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income /(loss) | $ 108,855 | $ (171,219) | $ 166,949 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Share-based compensation expense | 53,443 | 57,264 | 10,429 |
Changes in current assets and liabilities: | |||
Prepaid and other current assets | 101 | 30,577 | (51,172) |
Taxes payable | 29,573 | (16,256) | 17,171 |
Net cash used in operating activities | 506,053 | 152,283 | 403,933 |
Cash flows from investing activities: | |||
Net cash provided by investing activities | (69,767) | (438,474) | (441,629) |
Cash flows from financing activities: | |||
Issuance of common stock | 2,124 | 611 | 1,915 |
Net cash provided by /(used in) financing activities | (43,116) | (122,810) | 470,341 |
Net increase /(decrease) in cash and cash equivalents | 368,865 | (410,948) | 453,753 |
Cash and cash equivalents at beginning of year | 876,340 | 1,287,288 | 833,535 |
Cash and cash equivalents at end of year | 1,245,205 | 876,340 | 1,287,288 |
Sohu.com Inc. [Member] | |||
Cash flows from operating activities: | |||
Net income /(loss) | (37,687) | (138,910) | 67,125 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Investment income from subsidiaries and variable interest entities | 4,430 | 129,324 | (90,676) |
Share-based compensation expense | 15,393 | 1,120 | 886 |
Changes in current assets and liabilities: | |||
Prepaid and other current assets | (71) | (110) | 206 |
Taxes payable | 811 | (510) | 2,771 |
Accrued liabilities | 7,905 | (3,996) | 574 |
Net cash used in operating activities | (9,219) | (13,082) | (19,114) |
Cash flows from investing activities: | |||
Dividend received | 0 | 0 | 30,000 |
Net cash provided by investing activities | 0 | 0 | 30,000 |
Cash flows from financing activities: | |||
Issuance of common stock | 2,126 | 612 | 1,915 |
Net cash provided by /(used in) financing activities | 2,126 | 612 | 1,915 |
Net increase /(decrease) in cash and cash equivalents | (7,093) | (12,470) | 12,801 |
Cash and cash equivalents at beginning of year | 23,189 | 35,659 | 22,858 |
Cash and cash equivalents at end of year | $ 16,096 | $ 23,189 | $ 35,659 |
Notes to Schedule I - Condensed
Notes to Schedule I - Condensed Financial Information of Sohu.com Inc. (Details) | 12 Months Ended |
Dec. 31, 2015 | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract] | |
Material contingencies | No |
Significant provisions of long-term obligations | No |
Mandatory dividend or redemption requirements of redeemable stocks | No |
Guarantees | No |
Notes to Schedule I - Conden148
Notes to Schedule I - Condensed Financial Information of Sohu.com Inc. (Cash Dividends) (Details) $ in Millions | Feb. 21, 2013USD ($) |
Sohu.com Limited [Member] | Sohu.com Inc. [Member] | |
Cash Dividend Distribution [Line Items] | |
Cash dividends paid to Sohu | $ 30 |