Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | $ 939 | ||
Entity Common Stock, Shares Outstanding | 38,900,888 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 1,364,096 | $ 1,050,957 |
Restricted cash | 3,928 | 0 |
Short-term investments | 818,934 | 247,926 |
Accounts receivable, net | 250,468 | 189,167 |
Assets held for sale | 0 | 103,079 |
Prepaid and other current assets (including $29,019 and $32,005, respectively, due from a related party as of December 31, 2016 and 2017) | 192,675 | 260,133 |
Total current assets | 2,630,101 | 1,851,262 |
Fixed assets, net | 529,717 | 503,631 |
Goodwill | 71,565 | 68,290 |
Long-term investments, net | 90,145 | 74,273 |
Intangible assets, net | 23,060 | 32,131 |
Restricted time deposits | 271 | 269 |
Prepaid non-current assets | 4,211 | 4,734 |
Other assets | 40,169 | 29,100 |
Total assets | 3,389,239 | 2,563,690 |
LIABILITIES | ||
Accounts payable (including accounts payable of consolidated variable interest entities ("VIEs") without recourse to the Company of $15,824 and $53,842, respectively, as of December 31, 2016 and 2017) | 288,394 | 193,209 |
Accrued liabilities (including accrued liabilities of consolidated VIEs without recourse to the Company of $96,695 and $76,883, respectively, as of December 31, 2016 and 2017) | 343,106 | 324,876 |
Receipts in advance and deferred revenue (including receipts in advance and deferred revenue of consolidated VIEs without recourse to the Company of $44,797 and $46,939, respectively, as of December 31, 2016 and 2017) | 127,758 | 118,951 |
Accrued salary and benefits (including accrued salary and benefits of consolidated VIEs without recourse to the Company of $10,306 and $8,137, respectively, as of December 31, 2016 and 2017) | 102,087 | 92,475 |
Taxes payable (including taxes payable of consolidated VIEs without recourse to the Company of $11,475 and $18,210, respectively, as of December 31, 2016 and 2017) | 96,541 | 40,014 |
Short-term bank loans (including short-term bank loans of consolidated VIEs without recourse to the Company of nil as of both December 31, 2016 and 2017) | 61,216 | 0 |
Liabilities held for sale (including liabilities held for sale of consolidated VIEs without recourse to the Company of 3,232 and nil, respectively, as of December 31, 2016 and 2017) | 0 | 3,902 |
Other short-term liabilities (including other short-term liabilities of consolidated VIEs without recourse to the Company of $89,994 and $71,644, respectively, as of December 31, 2016 and 2017, and due to a related party of $28,678 and $31,192, respectively, as of December 31, 2016 and 2017.) | 136,300 | 159,315 |
Total current liabilities | 1,155,402 | 932,742 |
Long-term accounts payable (including long-term accounts payable of consolidated VIEs without recourse to the Company of nil as of both December 31, 2016 and 2017 ) | 1,157 | 744 |
Long-term bank loans (including long-term bank loans of consolidated VIEs without recourse to the Company of nil as of both December 31, 2016 and 2017) | 122,433 | 0 |
Long-term taxes payable (including long-term taxes payable of consolidated VIEs without recourse to the Company of $13,463 and $14,293, respectively, as of December 31, 2016 and 2017) | 249,618 | 32,625 |
Deferred tax liabilities (including deferred tax liabilities of consolidated VIEs without recourse to the Company of $1,273 and $3,451, respectively, as of December 31, 2016 and 2017) | 43,392 | 39,784 |
Total long-term liabilities | 416,600 | 73,153 |
Total liabilities | 1,572,002 | 1,005,895 |
Commitments and contingencies | ||
SHAREHOLDERS' EQUITY | ||
Common stock: $0.001 par value per share (75,400 shares authorized; 38,742 shares and 38,898 shares, respectively, issued and outstanding as of December 31, 2016 and 2017) | 45 | 45 |
Additional paid-in capital | 1,098,455 | 821,867 |
Treasury stock (5,890 shares as of both December 31, 2016 and 2017) | (143,858) | (143,858) |
Accumulated other comprehensive income | 38,212 | 3,220 |
Retained earnings/(deficit) | (242,220) | 312,306 |
Total Sohu.com Inc. shareholders' equity | 750,634 | 993,580 |
Noncontrolling interest | 1,066,603 | 564,215 |
Total shareholders' equity | 1,817,237 | 1,557,795 |
Total liabilities and shareholders' equity | $ 3,389,239 | $ 2,563,690 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Due from a related party | $ 32,005 | $ 29,019 |
Accounts payable | 288,394 | 193,209 |
Accrued liabilities | 343,106 | 324,876 |
Receipts in advance and deferred revenue | 127,758 | 118,951 |
Accrued salary and benefits | 102,087 | 92,475 |
Taxes payable | 96,541 | 40,014 |
Short-term bank loans | 61,216 | 0 |
Liabilities held for sale | 0 | 3,902 |
Other short-term liabilities | 136,300 | 159,315 |
Due to a related party | 31,192 | 28,678 |
Long-term accounts payable | 1,157 | 744 |
Long-term bank loans | 122,433 | 0 |
Long-term taxes payable | 249,618 | 32,625 |
Deferred tax liabilities | $ 43,392 | $ 39,784 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 75,400 | 75,400 |
Common stock, shares issued (in shares) | 38,898 | 38,742 |
Common stock, shares outstanding (in shares) | 38,898 | 38,742 |
Treasury stock, shares (in shares) | 5,890 | 5,890 |
Consolidated VIEs [Member] | ||
Accounts payable | $ 53,842 | $ 15,824 |
Accrued liabilities | 76,883 | 96,695 |
Receipts in advance and deferred revenue | 46,939 | 44,797 |
Accrued salary and benefits | 8,137 | 10,306 |
Taxes payable | 18,210 | 11,475 |
Short-term bank loans | 0 | 0 |
Liabilities held for sale | 0 | 3,232 |
Other short-term liabilities | 71,644 | 89,994 |
Long-term accounts payable | 0 | 0 |
Long-term bank loans | 1,530 | 0 |
Long-term taxes payable | 14,293 | 13,463 |
Deferred tax liabilities | $ 3,451 | $ 1,273 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income /(Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||
Brand advertising (including revenues generated from a related party of nil, $862 and nil, respectively, for 2015, 2016 and 2017) | $ 314,066 | $ 447,956 | $ 577,114 |
Search and search-related advertising | 801,199 | 597,133 | 539,521 |
Subtotal of online advertising revenues | 1,115,265 | 1,045,089 | 1,116,635 |
Online games | 449,533 | 395,709 | 636,846 |
Others | 296,164 | 209,633 | 183,610 |
Total revenues | 1,860,962 | 1,650,431 | 1,937,091 |
Cost of revenues: | |||
Brand advertising | 363,592 | 371,085 | 383,187 |
Search and search-related advertising | 412,904 | 290,158 | 238,944 |
Subtotal of cost of online advertising revenues | 776,496 | 661,243 | 622,131 |
Online games | 62,775 | 96,168 | 156,315 |
Others | 195,895 | 102,389 | 80,618 |
Total cost of revenues | 1,035,166 | 859,800 | 859,064 |
Gross profit | 825,796 | 790,631 | 1,078,027 |
Operating expenses: | |||
Product development | 412,173 | 353,144 | 398,143 |
Sales and marketing (including expenses generated for a related party of nil, $216 and nil, respectively, for 2015, 2016 and 2017) | 413,045 | 434,780 | 383,931 |
General and administrative | 122,874 | 119,841 | 173,160 |
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 86,882 | 0 | 40,324 |
Total operating expenses | 1,034,974 | 907,765 | 995,558 |
Operating profit /(loss) | (209,178) | (117,134) | 82,469 |
Other income/(loss), net | 6,658 | (10,713) | 74,526 |
Interest income (including interest income generated from a related party of $435, $1,244, and $1,157, respectively, for 2015, 2016 and 2017) | 24,138 | 22,499 | 30,643 |
Interest expense (including interest expense generated from a related party of $106, $662, and $724, respectively, for 2015, 2016 and 2017) | (4,088) | (1,356) | (7,184) |
Exchange difference | (14,385) | 12,803 | 5,337 |
Income /(loss) before income tax expense | (196,855) | (93,901) | 185,791 |
Income tax expense | 273,148 | 21,072 | 76,936 |
Net income /(loss) | (470,003) | (114,973) | 108,855 |
Less: Net income attributable to the noncontrolling interest shareholders | 84,523 | 109,048 | 146,542 |
Dividend or deemed dividend to noncontrolling Sogou Pre-IPO Series A Preferred shareholders | 0 | 0 | 11,911 |
Net loss attributable to Sohu.com Inc. | (554,526) | (224,021) | (49,598) |
Net income /(loss) | (470,003) | (114,973) | 108,855 |
Foreign currency translation adjustments | 56,250 | (73,235) | (90,665) |
Change in unrealized gain /(loss) for available-for-sale securities | 12,179 | (3,920) | 3,010 |
Other comprehensive income /(loss) | 68,429 | (77,155) | (87,655) |
Comprehensive income /(loss) | (401,574) | (192,128) | 21,200 |
Less: Comprehensive income attributable to noncontrolling interest shareholders | 117,960 | 78,824 | 118,138 |
Dividend or deemed dividend to noncontrolling Sogou Pre-IPO Series A Preferred shareholders | 0 | 0 | 11,911 |
Comprehensive loss attributable to Sohu.com Inc. | $ (519,534) | $ (270,952) | $ (108,849) |
Basic net loss per share attributable to Sohu.com Inc. | $ (14.27) | $ (5.79) | $ (1.28) |
Shares used in computing basic net loss per share attributable to Sohu.com Inc. | 38,858 | 38,706 | 38,598 |
Diluted net loss per share attributable to Sohu.com Inc. | $ (14.30) | $ (5.83) | $ (1.32) |
Shares used in computing diluted net loss per share attributable to Sohu.com Inc. | 38,858 | 38,706 | 38,598 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income /(Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME /(LOSS) [Abstract] | |||
Revenues from a related party | $ 0 | $ 862 | $ 0 |
Expenses for a related party | 0 | 216 | 0 |
Interest income from a related party | 1,157 | 1,244 | 435 |
Interest expense from a related party | $ 724 | $ 662 | $ 106 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income /(loss) | $ (470,003) | $ (114,973) | $ 108,855 |
Adjustments to reconcile net income /(loss) to net cash provided by operating activities: | |||
Amortization of intangible assets and purchased video content in prepaid expense | 140,881 | 131,182 | 159,945 |
Depreciation | 83,114 | 73,449 | 77,421 |
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 86,882 | 0 | 40,324 |
Share-based compensation expense | 41,468 | 19,120 | 53,443 |
Impairment loss of available-for-sale equity securities | 5,754 | 0 | 0 |
Impairment of other intangible assets and other assets | 72,259 | 22,906 | 17,837 |
Investment loss from equity investments | 1,451 | 2,085 | 7,509 |
Provision for allowance for doubtful accounts | 9,076 | 7,109 | 2,175 |
Gain from sale of the 7Road business and certain Changyou subsidiaries | 0 | 0 | (55,139) |
Gain /(loss) from sale of equity investments | 523 | (149) | (11,942) |
Change in fair value of financial instruments | (10,447) | (13,133) | (1,331) |
Others | (1,063) | (1,182) | 968 |
Changes in assets and liabilities, net of acquisition: | |||
Accounts receivable | (55,061) | 62,520 | (61,917) |
Prepaid and other assets | 19,551 | 15,091 | 101 |
Accounts payable | 33,395 | 40,273 | 2,208 |
Receipts in advance and deferred revenue | 1,404 | (8,152) | 11,782 |
Taxes payable | 48,154 | (36,666) | 29,573 |
Deferred tax | 214,909 | 5,268 | 6,020 |
Accrued liabilities and other short-term liabilities | (38,464) | 34,872 | 118,221 |
Net cash provided by operating activities | 183,783 | 239,620 | 506,053 |
Cash flows from investing activities: | |||
Purchase of fixed assets | (78,924) | (105,063) | (101,076) |
Purchase of intangible and other assets | (66,393) | (183,791) | (142,212) |
Purchase of long-term investments | (7,680) | (20,950) | (39,547) |
Return of funds from a third party | 4,928 | 5,061 | 9,415 |
Proceeds from financial instruments | 1,219,986 | 415,383 | 642,471 |
Purchase of financial instruments | (1,785,012) | (382,908) | (646,322) |
Funds to a third party | 0 | 0 | (20,033) |
Matching loan to a related party | 0 | (18,115) | (13,086) |
Consideration received from sale of the 7Road business and certain Changyou subsidiaries, net of cash in 7Road upon its disposition | 0 | 0 | 184,354 |
Release of restricted time deposits | 0 | 234,462 | 40,372 |
Proceeds received from sale of equity investment | 0 | 0 | 15,938 |
Other cash proceeds /(payments) related to investing activities | (1,408) | 5,182 | (41) |
Net cash used in investing activities | (714,503) | (50,739) | (69,767) |
Cash flows from financing activities: | |||
Consideration received from Sogou IPO, net of IPO Transaction Expenses | 622,131 | 0 | 0 |
Proceeds from long-term bank loan | 122,433 | 0 | 0 |
Proceeds from short-term bank loan | 67,785 | 0 | 0 |
Exercise of share-based awards in subsidiary | 494 | 291 | 7 |
Issuance of common stock | 0 | 0 | 2,126 |
Repayments of loans from banks | (7,684) | (344,500) | (25,500) |
Repurchase of Sogou Pre-IPO Class A Ordinary Shares from noncontrolling shareholders | (3,190) | 0 | 0 |
Matching loan from a related party | 0 | 17,041 | 12,900 |
Repurchase of Sogou Pre-IPO Series A Preferred Shares from noncontrolling shareholders | 0 | 0 | (21,015) |
Repurchase of Changyou American depositary shares ("ADSs") | 0 | 0 | (14,506) |
Other cash proceeds /(payments) related to financing activities | 6 | (766) | 2,872 |
Net cash provided by /(used in) financing activities | 801,975 | (327,934) | (43,116) |
Effect of exchange rate changes on cash and cash equivalents | 30,200 | (43,511) | (24,305) |
Reclassification of cash and cash equivalents to assets held for sale | 11,684 | (11,684) | 0 |
Net increase /(decrease) in cash and cash equivalents | 313,139 | (194,248) | 368,865 |
Cash and cash equivalents at beginning of year | 1,050,957 | 1,245,205 | 876,340 |
Cash and cash equivalents at end of year | 1,364,096 | 1,050,957 | 1,245,205 |
Supplemental cash flow disclosures: | |||
Cash paid for income taxes | (43,264) | (25,179) | (43,988) |
Cash paid for interest expense | (7,176) | (965) | (7,235) |
Barter transactions | 6,110 | 12,384 | 1,808 |
Supplemental schedule of non-cash investing activity: | |||
Changes in payables and other liabilities related to fixed assets and intangible assets additions | 56,486 | 35,470 | 20,270 |
Consideration payable for acquisitions and equity investment | $ 0 | $ 0 | $ 5,722 |
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, 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) |
Share-based compensation expense | 53,561 | 0 | 30,181 | 0 | 0 | 0 | 23,380 |
Settlement/Adjustment of share-based awards in subsidiary | 516 | 0 | 34,697 | 0 | 0 | 0 | (34,181) |
Repurchase of Sogou Pre-IPO Series A Preferred Shares from noncontrolling shareholders | (21,329) | 0 | 90,719 | 0 | 0 | (11,911) | (100,137) |
Purchase of noncontrolling interest in RaidCall | 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 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 |
Share-based compensation expense | 19,120 | 0 | 2,678 | 0 | 0 | 0 | 16,442 |
Settlement/Adjustment of share-based awards in subsidiary | 337 | 0 | 19,501 | 0 | 0 | 0 | (19,164) |
Contribution from noncontrolling interest shareholder | 0 | 0 | 1,333 | 0 | 0 | 0 | (1,333) |
Disposal of noncontrolling interest | (238) | 0 | 0 | 0 | 0 | 0 | (238) |
Net income /(loss) attributable to Sohu.com Inc. and noncontrolling interest shareholders | (114,973) | 0 | 0 | 0 | 0 | (224,021) | 109,048 |
Accumulated other comprehensive loss | (77,155) | 0 | 0 | 0 | (46,931) | 0 | (30,224) |
Others | (48) | 0 | (2) | 0 | 0 | 0 | (46) |
Ending balance at Dec. 31, 2016 | 1,557,795 | 45 | 821,867 | (143,858) | 3,220 | 312,306 | 564,215 |
Consideration received from Sogou IPO, net of IPO Transaction Expenses | 622,131 | 0 | 278,428 | 0 | 0 | 0 | 343,703 |
Share-based compensation expense | 41,468 | 0 | 827 | 0 | 0 | 0 | 40,641 |
Settlement/Adjustment of share-based awards in subsidiary | 494 | 0 | (2,755) | 0 | 0 | 0 | 3,249 |
Repurchase of Sogou Pre-IPO Class A Ordinary Shares from noncontrolling shareholders | (3,190) | 0 | 0 | 0 | 0 | 0 | (3,190) |
Purchase of noncontrolling interest | 193 | 0 | 88 | 0 | 0 | 0 | 105 |
Disposal of noncontrolling interest | (80) | 0 | 0 | 0 | 0 | 0 | (80) |
Net income /(loss) attributable to Sohu.com Inc. and noncontrolling interest shareholders | (470,003) | 0 | 0 | 0 | 0 | (554,526) | 84,523 |
Accumulated other comprehensive loss | 68,429 | 0 | 0 | 0 | 34,992 | 0 | 33,437 |
Ending balance at Dec. 31, 2017 | $ 1,817,237 | $ 45 | $ 1,098,455 | $ (143,858) | $ 38,212 | $ (242,220) | $ 1,066,603 |
The Company and Nature of Opera
The Company and Nature of Operations | 12 Months Ended |
Dec. 31, 2017 | |
THE COMPANY AND NATURE OF OPERATIONS [Abstract] | |
The Company and Nature of Operations | 1. THE COMPANY AND NATURE OF OPERATIONS 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 and search-related services 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 Legacy TLBB, and engages primarily in the development, operation and licensing of online games for PCs and mobile devices. Sogou completed its IPO on the NYSE in November 2017 (trading under the symbol “SOGO”) and Changyou completed its IPO on NASDAQ in April 2009 (trading under the symbol “CYOU”). As Sohu.com Inc. is the controlling shareholder of both Sogou and Changyou, Sohu.com Inc. consolidates Sogou and Changyou in its consolidated financial statements, and recognizes noncontrolling interests reflecting economic interests in Sogou and Changyou held by shareholders other than Sohu.com Inc. Through the operation of Sohu, Sogou and Changyou, the Sohu Group generates online advertising revenues, including brand advertising revenues and search and search-related advertising revenues; online games revenues; and other revenues. Online advertising and online games are the Group’s core businesses. Most of the Group’s operations are conducted through the Group’s China-based subsidiaries and VIEs. 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. Other Sohu Business Sohu also engages in the other business, which consists primarily of paid subscription services, interactive broadcasting services, sub-licensing Sogou’s Business Search and Search-related Business The search and search-related business consists primarily of search and search-related advertising services offered by Sogou. Search and search-related advertising services enable advertisers’ promotional links to be displayed on Sogou’s search results pages and other Internet properties and third parties’ Internet properties where the links are relevant to the subject and content of searches and such properties. Sogou’s advertising services expand distribution of advertisers’ promotional links and advertisements by leveraging traffic on third parties’ Internet properties, including Web content, software, and mobile applications. The search and search-related business benefits from Sogou’s collaboration with Tencent Holdings Limited (together with its subsidiaries, “Tencent”), which provides Sogou access to traffic and content 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 advertising revenues in the Sohu Group’s consolidated statements of comprehensive income. Other Sogou Business Sogou also offers IVAS, primarily with respect to the operation of Web games and mobile games developed by third parties and the provision of online reading services, and offers other products and services, including smart hardware products. Revenues generated by Sogou from other business are classified as other revenues in the Sohu Group’s consolidated statements of comprehensive income. Initial Public Offering of Sogou On November 13, 2017, Sogou completed its IPO on the NYSE, trading under the symbol “SOGO.” Sogou’s IPO consisted of American depositary shares (“ADSs”), with each ADS representing one Class A Ordinary Share. Sogou issued and sold in the IPO 50,643,856 Class A Ordinary Shares represented by 50,643,856 ADSs, including 5,643,856 Class A Ordinary Shares represented by 5,643,856 ADSs sold pursuant to the exercise of the underwriters’ over-allotment option. Proceeds to Sogou from the IPO were approximately $622.1 million, after deducting underwriting discounts and commissions and offering expenses (“IPO Transaction Expenses”). Sogou’s Ordinary Shares are divided into Class A Ordinary Shares and Class B Ordinary Shares. Holders of Class A Ordinary Shares and holders of Class B Ordinary Shares have identical rights with the exception of voting and conversion rights. Each Class A Ordinary Share is entitled to one vote per share and is not convertible. Each Class B Ordinary Share is entitled to ten votes per share and is convertible into one Class A Ordinary Share at any time. Following the completion of the IPO and exercise of the underwriters’ over-allotment option, Sogou had a combined total of 397,166,312 Class A and Class B Ordinary Shares issued and outstanding, consisting of: (i) Sohu.com Inc.: 127,200,000 Class B Ordinary Shares held by Sohu for its own account, and 3,717,250 Class A Ordinary Shares held by Sohu for the purpose of issuance upon the exercise of outstanding share-based awards and future share-based awards; (ii) Tencent: 151,557,875 Class B Ordinary Shares; (iii) Photon Group Limited, an investment vehicle of the Sohu Group’s Chairman and Chief Executive Officer Charles Zhang (“Photon”): 32,000,000 Class A Ordinary Shares; (iv) Various employees of Sogou and Sohu: 32,047,331 Class A Ordinary Shares; and (v) Public shareholders: 50,643,856 Class A Ordinary Shares. The totals of Sogou outstanding shares listed above include 10,327,500 Class A Ordinary Shares that are outstanding for legal purposes, but have been determined to be Sogou treasury stock for accounting purposes. See Note 17. Voting Agreement between Sohu and Tencent Sohu, Tencent Holdings Limited (“Tencent”), and Sogou entered into a Voting Agreement (the “Voting Agreement”) that took effect upon the completion of Sogou’s IPO, pursuant to which Sohu and Tencent agreed that, subject to certain exceptions, (1) within three years following the completion of Sogou’s IPO, Sohu will vote all Class B Ordinary Shares and any Class A Ordinary Shares held by it and Tencent will vote 45,578,896 of its Class B Ordinary Shares to elect a Board of Directors consisting of seven directors, four of whom will be appointed by Sohu, two of whom will be appointed by Tencent, and the seventh of whom will be Sogou’s then chief executive officer, and (2) after three years following the completion of Sogou’s IPO, Sohu will be entitled to choose to change the size and composition of Sogou’s Board of Directors, subject to Tencent’s right to appoint at least one director. The effect of these provisions is to give Sohu the power to appoint a majority of Sogou’s Board of Directors, and to give Tencent the power to appoint two directors within three years following the completion of Sogou’s IPO and at least one director after three years after the completion of Sogou’s IPO. The Voting Agreement also provides that, subject to certain conditions, for so long as Sohu and Tencent together hold more than 50% of the total voting power of Sogou’s Class A Ordinary Shares and Class B Ordinary Shares, Sohu or Tencent may remove and replace any director appointed by it. These provisions of the Voting Agreement are also reflected in Sogou’s Amended and Restated Memorandum of Association and Amended and Restated Articles of Association. Due to the additional voting power of the Class B Ordinary Shares held by Sohu and Tencent, as of the date of this report Sohu holds approximately 33% of the total of Sogou’s outstanding Class A and Class B Ordinary Shares and controls approximately 44% of the total voting power of the combined total of Sogou’s outstanding Class A and Class B Ordinary Shares; Tencent has an indirect shareholding of approximately 39% of the total of Sogou’s outstanding Class A and Class B Ordinary Shares and controls approximately 52% of the total voting power of the combined total of Sogou’s outstanding Class A and Class B Ordinary Shares; and Sohu and Tencent together have the power to decide all matters that may be brought to a vote of Sogou’s shareholders. The Voting Agreement and Sogou’s Amended and Restated Articles of Association also specify that for so long as Sohu or Tencent holds not less than 15% of Sogou’s issued shares (calculated on a fully diluted basis), consent from the holder of 15% or more (either or both of Sohu or Tencent, as the case may be) will be required (1) to amend Sogou’s Amended and Restated Memorandum of Association or Amended and Restated Articles of Association, (2) to make material changes in Sogou’s principal lines of business, (3) to issue any additional Class B Ordinary Shares, (4) to create any new class or series of shares that is pari passu with or senior to the Class A Ordinary Shares, (5) for Sogou to approve a liquidation, dissolution or winding up of Sogou, or a merger or consolidation resulting in a change in control, or any disposition of all or substantially all of Sogou’s assets, or (6) for Sogou to enter into any transactions with affiliates of Sohu, other than in the ordinary course of business. Of these corporate actions that are subject to consent of Sohu or Tencent (as applicable), shareholder approval is required under the Companies Law of the Cayman Islands for any amendment of Sogou’s Amended and Restated Memorandum of Association or Amended and Restated Articles of Association, any winding-up The Voting Agreement and Sogou’s Amended and Restated Articles of Association also specify that if at any time Sohu alone holds more than 50% of the total voting power of Sogou’s Class A Ordinary Shares and Class B Ordinary Shares, the voting arrangements with respect to the size and composition of Sogou’s Board of Directors will be automatically suspended until such time within five years after the completion of Sogou’s IPO as Sohu’s voting power again drops to 50% or less, in which case the original voting arrangements will be reinstated, provided that Tencent will only be required to vote the lower of 45,578,896 Class B Ordinary Shares held by it or such number as would give Sohu combined voting power of 50.1%. If such a suspension continues after the fifth anniversary of the completion of Sogou’s IPO, the voting arrangements with respect to the size and composition of Sogou’s Board of Directors will terminate. All of the Class B Ordinary Shares held by Sohu will be converted into Class A Ordinary Shares if there is a transaction resulting in change of control of Sohu that was not approved by Sohu’s board of directors, if specified competitors of Tencent control Sohu, or if a majority of Sohu’s board of directors consist of nominees of specified competitors of Tencent. The provisions with respect to the size and composition of Sogou’s Board of Directors set out in the Voting Agreement and Sogou’s Amended and Restated Articles of Association will terminate upon occurrence of any such event. Such arrangements will also terminate (1) if Dr. Charles Zhang, the chairman of the board of directors of Sohu and the chief executive officer, both ceases being the chairman of the board of directors of Sohu and ceases being the single largest beneficial owner of Sohu’s outstanding shares; (2) if Sohu transfers 30% or more of the Class B Ordinary Shares that Sohu held upon the completion of Sogou’s IPO; (3) if Sogou fails to provide irrevocable instructions to the person maintaining Sogou’s register of members to accept instructions from Tencent, under certain circumstances, with respect to the conversion of Class B Ordinary Shares held by Sohu; (4) or Sogou changes, without Tencent’s consent, the person that maintains Sogou’s register of members; (5) or if Tencent ceases to own any Class B Ordinary Shares. Under the Voting Agreement, Sohu and Tencent are subject to certain restrictions on transfer of their Class A and Class B Ordinary Shares. In particular, a transfer of Class B Ordinary Shares by either Sohu or Tencent, respectively, to any person or entity that is not a direct or indirect wholly-owned subsidiary of Sohu or Tencent, respectively, will cause such Class B Ordinary Shares to be converted into Class A Ordinary Shares. Voting Agreement between Sohu, Photon and Sogou management Sohu may be deemed to have beneficial ownership attributable to shared voting power of Class A Ordinary Shares beneficially owned by Photon; Sogou’s chief executive officer Xiaochuan Wang; and four other members of the Sogou management, as a result of a voting agreement by and among Sohu, Photon, Mr. Wang and the other four management members, pursuant to which Photon, Mr. Wang, and the other four management members have agreed to vote their Class A Ordinary Shares (not including shares acquired by Mr. Wang in the public market following Sogou’s IPO) to elect Sohu’s designees to the Sogou Board. Financial Implications Following the completion of Sogou’s IPO, pursuant to the Voting Agreement, Sohu has the right to appoint a majority of Sogou’s Board of Directors, and Sohu continues to consolidate Sogou in Sohu’s financial statements and provide for noncontrolling interests reflecting ordinary shares in Sogou held by shareholders other than Sohu. In the fourth quarter of 2017, Sohu recognized a one-time paid-in Sogou’s Share Structure As of December 31, 2017, Sogou had a combined total of 397,166,312 Class A Ordinary Shares and Class B Ordinary Shares issued and outstanding. Such total includes 10,327,500 Class A Ordinary Shares that are outstanding for legal purposes, but have been determined to be Sogou treasury stock for accounting purposes. See Note 17. Changyou’s Business Changyou’s business lines consist of the online game business; the platform channel business, which consists primarily of online advertising and IVAS business; and the cinema advertising business. Online Game Business Changyou’s online game business offers PC games and mobile games to game players. All of Changyou’s games are operated under the item-based revenue model, meaning that game players can play the games for free, but can choose to pay for virtual items, which are non-physical PC Games PC games 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 client-end Mobile Games Mobile games are played on mobile devices and require an Internet connection. In the second quarter of 2017, Changyou launched a new mobile game, Legacy TLBB, which is operated by Tencent under license from Changyou. For the year ended December 31, 2017, revenues from Legacy TLBB were $139.5 million, accounting for approximately 31% of Changyou’s online game revenues, approximately 24% of Changyou’s total revenues, and approximately 8% of the Sohu Group’s total revenues. Web Games Prior to the sale of Shenzhen 7Road in August 2015, Changyou’s online games also included Web games, which are online games that are played through a Web browser with no local game software installation requirements. Following the sale of Shenzhen 7Road, Web games became an insignificant part of Changyou’s online game business. Platform Channel Business Changyou’s platform channel business consists primarily of the operation of the 17173.com Website, RaidCall, and MoboTap. 17173.com Website The 17173.com Website is one of the leading information portals in China, and provides news, electronic forums, online videos and other information services regarding online games to game players. All revenues generated by the 17173.com Website are classified as brand advertising revenues. RaidCall RaidCall provides online music and entertainment services, primarily in Taiwan. IVAS revenues generated by RaidCall are classified as other revenues in the Company’s consolidated statements of comprehensive income. MoboTap MoboTap provides (a) software applications for PCs and mobile devices through the Dolphin Browser, which is a gateway to a host of user activities on mobile devices with the majority of its users based in overseas markets, and (b) domestic online card and board games. IVAS revenues generated by the Dolphin Browser are classified as other revenues and online card and board games revenues generated by MoboTap are classified as online game revenues in the Company’s consolidated statements of comprehensive income. Cinema Advertising Business Changyou also operates a cinema advertising business, which consists primarily of the acquisition from operators of movie theaters, and the sale to advertisers of pre-film Changyou’s Share Structure Changyou had a combined total of 105,436,420 Class A and Class B Ordinary Shares issued and outstanding, consisting of: (i) Sohu.com Inc.: 1,500,000 Class A Ordinary Shares and 70,250,000 Class B Ordinary Shares; (ii) Various employees of Changyou: 5,666,112 Class A Ordinary Shares; and (iii) Public shareholders: 28,020,308 Class A Ordinary Shares. As of December 31, 2017, Sohu.com Inc. held approximately 68% of the combined total of Changyou’s outstanding ordinary shares, and controlled approximately 95% of the total voting power in Changyou. As Changyou’s controlling shareholder, Sohu.com Inc. consolidates Changyou in its financial statements and provides for noncontrolling interests reflecting ordinary shares in Changyou held by shareholders other than Sohu.com Inc. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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 in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”) to reflect the financial position and results of operations of the Sohu Group. 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 of Consolidation and Recognition of Noncontrolling Interest The Sohu Group’s consolidated financial statements include the accounts of Sohu.com Inc. and its 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 subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholders. Currently, the noncontrolling interests in the Sohu Group’s consolidated financial statements primarily consist of noncontrolling interests for Sogou and Changyou. Noncontrolling Interest for Sogou Sogou completed its IPO on the NYSE in November 2017. Prior to the completion of Sogou’s IPO, Sohu.com Inc. controlled the election of a majority of the Board of Directors of Sogou pursuant to a shareholders’ agreement that expired upon completion of the IPO. Following the completion of Sogou’s IPO, pursuant to the Voting Agreement, Sohu.com Inc. still has the right to appoint a majority of Sogou’s Board of Directors. As Sogou’s controlling shareholder, the Sohu Group consolidates Sogou in its consolidated financial statements, and recognizes noncontrolling interest reflecting economic interests in Sogou held by shareholders other than it (the “Sogou noncontrolling shareholders”). Sogou’s net income/(loss) attributable to the Sogou noncontrolling shareholders is recorded as noncontrolling interest in its consolidated statements of comprehensive income. Noncontrolling Interest Recognition before Sogou’s IPO Sogou’s cumulative results of operations attributable to the Sogou noncontrolling shareholders, based on the following principles of allocation of Sogou’s profit and loss, along with changes in shareholders’ equity/(deficit) and adjustment for share-based compensation expense in relation to those share-based awards that were unvested and vested but not yet settled and the Sogou noncontrolling shareholders’ investments in Sogou Series A Preferred Shares outstanding before Sogou’s IPO (“Sogou Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Principles of Allocation of Sogou’s Profit and Loss - By virtue of the terms of the Sogou Pre-IPO Pre-IPO Pre-IPO (i) net losses were allocated to holders of the Sogou Pre-IPO Pre-IPO (ii) additional net losses were allocated to holders of the Sogou Pre-IPO (iii) additional net losses were allocated to the holder of the Sogou Pre-IPO (iv) further net losses were allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou. Net income from Sogou was allocated in the following order before Sogou’s IPO: (i) net income was allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou until their basis in Sogou increased to zero; (ii) additional net income was allocated to the holder of the Sogou Pre-IPO (iii) additional net income was allocated to holders of the Sogou Pre-IPO (iv) further net income was allocated to holders of the Sogou Pre-IPO Pre-IPO (v) further net income was allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou. Noncontrolling Interest Recognition after Sogou’s IPO Sogou’s cumulative results of operations attributable to the Sogou noncontrolling shareholders, based on their share of the economic interest in Sogou, along with changes in shareholders’ equity and adjustment for share-based compensation expense in relation to share-based awards that are unvested and vested but not yet settled and adjustment for changes in its ownership in Sogou, are recorded as noncontrolling interest in its consolidated balance sheets. Noncontrolling Interest for Changyou Changyou is a public company listed on the NASDAQ Global Select Market. As of December 31, 2017, Sohu.com Inc. held approximately 68% of the combined total of Changyou’s outstanding ordinary shares, and controlled approximately 95% of the total voting power in Changyou. As Changyou’s controlling shareholder, Sohu.com Inc. consolidates Changyou in its consolidated financial statements, and recognizes noncontrolling interest reflecting 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. Revenues or expenses from barter transactions are recognized at fair value during the period in which the advertisements are provided only if the fair value of the advertising services surrendered in the transaction is determinable based on our historical practice of receiving cash and cash equivalents, marketable securities, or other consideration that is readily convertible to a known amount of cash for similar advertising from buyers unrelated to the counterparty in the barter transaction. Online Advertising Revenues Online advertising revenues include revenues from brand advertising services as well as search and search-related advertising 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, in-feed 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 Cost Per click (“CPC”) model, and the E-commerce (i) Fixed Price model Under the Fixed Price model, a contract is signed to establish a fixed price for the advertising services to be provided. The Group recognizes revenue based on the contract price and the period of display. (ii) 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. The Group recognizes revenue based on the fees it charges the advertisers, which are based on the unit prices and the number of qualifying displays. (iii) 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 (iv) E-commerce Under the e-commerce 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. The Sohu Group treats advertising contracts with multiple deliverable elements as separate units of accounting for revenue recognition purposes and recognizes revenue on a periodic basis during the contract period when each deliverable service is provided. Since the contract price is for all deliverables under one advertising contract, the Sohu Group allocates the contract price among all the deliverables at the inception of the arrangement on the basis of their relative selling prices according to the selling price hierarchy established by ASU No. 2009-13 Search and Search-related Advertising Revenues Search and search-related services consist primarily of search and search-related advertising services offered by Sogou. Pay-for-click Pay-for-click pay-for-click auction-based per-click pay-for-click per-click Other Online Advertising Services Other online advertising services mainly consist of displaying advertisers’ promotional links on Sogou’s Internet properties. Revenue for time-based advertising is normally recognized on a straight-line basis over the contract period, provided Sogou’s obligations under the contract and all revenue recognition criteria have been met. Revenue for performance-based advertising services is recognized when our obligations under the contract have been met. Sogou’s advertising services expand distribution of advertisers’ promotional links and advertisements by leveraging traffic on third parties’ Internet properties, including Web content, software, and mobile applications. Sogou is the primary obligor to the advertisers. Payments made to operators of third-party Internet properties are included in traffic acquisition costs, which are included in cost of search and search-related advertising revenues. Online Game Revenues Changyou’s online game revenues are generated primarily from its self-operated and licensed-out in-game 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 VAT and discounts to game card distributors where applicable. Changyou obtains revenues from the sale of in-game 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 Mobile Games For self-operated mobile games, Changyou sells game points to its game players via third-party mobile APP stores. The mobile APP stores in turn pay Changyou proceeds after deducting their share of pre-agreed 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 Web Games Changyou continued to operate a small portfolio of self-operated Web games after its sale of the 7Road business in 2015. 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 and mobile games developed in house (such as Changyou’s mobile game Legacy TLBB) 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 pre-agreed Other Revenues Sohu Sohu also engages in the other business, which consists primarily of paid subscription services, interactive broadcasting services, sub-licensing Sogou Other revenues attributable to Sogou are revenues from IVAS, primarily with respect to the operation of Web games and mobile games developed by third parties and the provision of online reading services, and revenues from other products and services, including smart hardware products. Changyou Other revenues attributable to Changyou are primarily from its cinema advertising business and IVAS. In its cinema advertising business, Changyou provides clients advertising placements in slots that are shown in theaters before the screening of movies. The rights to place advertisements in such advertising slots are granted under contracts Changyou signs with different theaters. 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. Changyou provides IVAS primarily through software applications for PCs and mobile devices offered by MoboTap on the Dolphin Browser and by RaidCall. Revenues from IVAS are recognized during the period the services are rendered or items are consumed under the gross method, as Changyou is the principal obligor for provision of the services. 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 revenues from 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, and salary and benefits expenses. Cost of Search and Search-related Advertising Revenues Cost of search and search-related advertising revenues mainly consists of traffic acquisition costs, bandwidth leasing costs, depreciation expenses, as well as salary and benefits expenses. Traffic acquisition costs consist primarily of payments to third parties that direct search queries of the users to Internet properties of Sogou or distribute Sogou advertisers’ promotional links through such third parties’ Internet properties. The traffic acquisitions costs for such arrangements consist primarily of fees that Sogou pays to the third parties based on an agreed-upon revenue-sharing agreed-upon Cost of Online Game Revenues Cost of online game revenues mainly consists of revenue-sharing payments, salary and benefits expenses, bandwidth leasing costs, content and license costs, depreciation and amortization expenses, and other direct costs. Cost of Other Revenues Cost of other revenues mainly consists of payments to theaters for pre-film Product Development Expenses Product development expenses mainly consist of salary and benefits expenses, technical service fees, share-based compensation expense, content and license costs, depreciation and amortization expenses, and facilities expenses. These expenses are incurred for the enhancement and maintenance of the Sohu Group’s Internet platforms as well as for its products and services, including the development costs of online games prior to the establishment of technological feasibility and cost of upgrades and technical support 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 expenses, travelling and entertainment expenses, and facilities 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 fees, bad debts, travelling and entertainment expenses, facilities expenses, and depreciation and amortization expenses. 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 stock options, share options 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 Sohu (excluding Sohu Video), Sogou, and Changyou Share-based Awards Sohu (excluding Sohu Video) Share-based Awards In determining the fair value of stock 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 Sohu common stock contractually granted under the Sohu 2010 Stock Incentive Plan 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. Under ASC 718-10-25 ASC 718-10-55 re-measured Sogou Share-based Awards In determining the fair value of share options granted by Sogou as share-based awards, a binomial valuation model was applied. The determination of the fair value is affected by the fair value of the ordinary shares as well as assumptions regarding a number of complex and subjective variables, including risk-free interest rates, exercise multiples, expected forfeiture rates, expected share price volatility rates, and expected dividends. The fair values of the ordinary shares were assessed using the income approach/discounted cash flow method or based on the mid-point 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 shortly before Changyou’s IPO, the fair value of the underlying shares was determined based on Changyou’s offering price for its IPO. In determining the fair value of restricted share units granted after Changyou’s IPO, the public market price of the underlying shares on the grant dates was applied. Options for the purchase of Changyou Class A ordinary shares contractually granted under the Changyou 2014 Share Incentive Plan 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. Under ASC 718-10-25 ASC 718-10-55 re-measured Compensation Expense Recognition For options 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 over the estimated period during which the service period requirement and performance target will be met, which is usually within one year or, after the performance target of Sogou’s completion of an IPO was met upon the completion of Sogou’s IPO on November 13, 2017, on an accelerated basis over the requisite service period. For Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search and 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 For Sogou Pre-IPO Pre-IPO 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 Sohu Video shares on a fully-diluted basis) to management and key employees of the video division and to Sohu management. As of December 31, 2017, 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 re-measured, re-measure, 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 are related 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 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 PRC Value Added Tax On May 1, 2016, the transition from the imposition of PRC business tax (“Business Tax”) to the imposition of VAT was expanded to all industries in China, and all of the Sohu Group’s revenues have been subject to VAT since that date. 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 the available input VAT amount (at the rate applicable to the supplier). 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 21% for taxable years beginning after December 31, 2017 and U.S. corporate income tax on its taxable income of up to 35% for prior tax years. Recent U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Reform”), was signed into law on December 22, 2017. The U.S. Tax Reform significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time one-time lump-sum To the extent that portions of its U.S. taxable income, such as Subpart F income or global intangible low-taxed 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 two-step 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: Sogou’s net income /(loss) attributable to Sohu.com Inc. Before Sogou’s IPO Before Sogou’s IPO, Sogou’s net income /(loss) attributable to Sohu.com Inc. was determined using the percentage that the weighted average number of Sogou shares held by Sohu.com Inc. represented of the weighted average number of the Sogou Pre-IPO Pre-IPO if-converted After Sogou’s IPO After Sogou’s IPO, 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 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 Sogou, 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, 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 Sogou share options with the performance targets achieved as well as vested but unexercised Sogou 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.’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. Changyou’s net income /(loss) attributable to Sohu.com Inc. 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 share options, and vested restricted share units and share options 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. Assuming an anti-dilutive effect, all of these Changyou restricted share units and share options 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. 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 Group’s financial instruments mainly include cash equivalents, restricted cash, short-term investments, accounts receivable, assets held for sale, prepaid and other current assets, long-term investments (including available-for-sale Cash Equivalents The Sohu Group’s cash equivalents mainly consist of time deposits with original maturities of three months or less, and highly liquid investments that are readily convertible to known amounts of cash. Short-term Investments For investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Sohu Group elec |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
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 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. There are three segments in the Group, consisting of the Sohu segment, the Sogou segment, and the Changyou segment. The following tables present summary information by segment (in thousands): 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 (3) (94,392 ) (124,210 ) (165,130 ) 4,932 (378,800 ) Sales and marketing (1) (3) (203,332 ) (93,055 ) (91,334 ) 6,845 (380,876 ) General and administrative (3) (57,014 ) (14,422 ) (71,771 ) (656 ) (143,863 ) Goodwill impairment and impairment of intangible assets acquired as part of a business acquisitions 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) (4) 92,455 1,142 64,961 (84,032 ) 74,526 Interest income (5) 7,690 5,332 23,779 (6,158 ) 30,643 Interest expense (5) (5,007 ) 0 (8,335 ) 6,158 (7,184 ) 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 mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): In the third quarter of 2015, Sogou purchased from Sohu 24.0 million Sogou Pre-IPO Note (5): The elimination represents interest income/ (expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. Year Ended December 31, 2016 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 468,515 $ 660,408 $ 525,385 $ (3,877 ) $ 1,650,431 Segment cost of revenues (391,417 ) (302,565 ) (165,779 ) 327 (859,434 ) Segment gross profit 77,098 357,843 359,606 (3,550 ) 790,997 SBC (2) in cost of revenues (164 ) (171 ) (31 ) 0 (366 ) Gross profit 76,934 357,672 359,575 (3,550 ) 790,631 Operating expenses: Product development (3) (96,815 ) (132,749 ) (118,738 ) 4,342 (343,960 ) Sales and marketing (1) (3) (259,800 ) (121,303 ) (55,971 ) 4,688 (432,386 ) General and administrative (3) (47,804 ) (19,308 ) (45,642 ) 89 (112,665 ) SBC (2) in operating expenses (1,703 ) (8,680 ) (8,371 ) 0 (18,754 ) Total operating expenses (406,122 ) (282,040 ) (228,722 ) 9,119 (907,765 ) Operating profit /(loss) (329,188 ) 75,632 130,853 5,569 (117,134 ) Other income /(expense) (3) 5,360 (26,027 ) 15,523 (5,569 ) (10,713 ) Interest income (4) 8,879 5,198 21,490 (13,068 ) 22,499 Interest expense (4) (10,103 ) 0 (4,321 ) 13,068 (1,356 ) Exchange difference 2,349 5,346 5,108 0 12,803 Income /(loss) before income tax benefit /(expense) (322,703 ) 60,149 168,653 0 (93,901 ) Income tax benefit /(expense) 538 (27 ) (21,583 ) 0 (21,072 ) Net income /(loss) $ (322,165 ) $ 60,122 $ 147,070 $ 0 $ (114,973 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): The elimination represents interest income/ (expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. Year Ended December 31, 2017 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 374,696 $ 908,357 $ 580,261 $ (2,352 ) $ 1,860,962 Segment cost of revenues (414,526 ) (456,861 ) (163,713 ) 132 (1,034,968 ) Segment gross profit (39,830 ) 451,496 416,548 (2,220 ) 825,994 SBC (2) in cost of revenues 415 (540 ) (73 ) 0 (198 ) Gross profit (39,415 ) 450,956 416,475 (2,220 ) 825,796 Operating expenses: Product development (3) (113,590 ) (156,359 ) (124,869 ) 6,192 (388,626 ) Sales and marketing (1) (3) (199,304 ) (152,121 ) (59,705 ) 4,000 (407,130 ) General and administrative (3) (44,563 ) (25,407 ) (37,218 ) 130 (107,058 ) Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions 0 0 (86,882 ) 0 (86,882 ) SBC (2) in operating expenses (765 ) (27,193 ) (17,320 ) 0 (45,278 ) Total operating expenses (358,222 ) (361,080 ) (325,994 ) 10,322 (1,034,974 ) Operating profit /(loss) (397,637 ) 89,876 90,481 8,102 (209,178 ) Other income /(expense) (3) 4,694 692 9,374 (8,102 ) 6,658 Interest income (4) 7,344 9,126 32,319 (24,651 ) 24,138 Interest expense (4) (24,367 ) 0 (4,372 ) 24,651 (4,088 ) Exchange difference (2,107 ) (7,082 ) (5,196 ) 0 (14,385 ) Income /(loss) before income tax expense (412,073 ) 92,612 122,606 0 (196,855 ) Income tax expense (217,959 ) (14,422 ) (40,767 ) 0 (273,148 ) Net income /(loss) $ (630,032 ) $ 78,190 $ 81,839 $ 0 $ (470,003 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou, and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): The elimination represents interest income/ (expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. As of December 31, 2016 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 167,691 $ 286,078 $ 597,188 $ 0 $ 1,050,957 Accounts receivable, net 100,317 41,781 47,150 (81 ) 189,167 Fixed assets, net 196,839 117,022 189,770 0 503,631 Total assets (1) $ 1,241,844 $ 499,589 $ 1,708,037 $ (885,780 ) $ 2,563,690 Note (1): The elimination for segment assets mainly consists of elimination of intra-Group loans between the Sohu segment and the Changyou segment, and elimination of long-term investments in subsidiaries and consolidated VIEs. As of December 31, 2017 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 98,750 $ 694,207 $ 571,139 $ 0 $ 1,364,096 Accounts receivable, net 86,801 72,117 91,636 (86 ) 250,468 Fixed assets, net 200,561 139,209 189,947 0 529,717 Total assets (1) $ 1,124,759 $ 1,321,036 $ 1,922,023 $ (978,579 ) $ 3,389,239 Note (1): The elimination for segment assets mainly consists of elimination of intra-Group 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, 2017 | |
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 stock options, share options 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, 2015, 2016 and 2017 as follows (in thousands): Year Ended December 31, Share-based compensation expense 2015 2016 2017 Cost of revenues $ 1,748 $ 366 $ 198 Product development expenses 19,344 9,184 23,547 Sales and marketing expenses 3,054 2,394 5,915 General and administrative expenses 29,297 7,176 15,817 $ 53,443 $ 19,120 $ 45,477 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, Share-based 2015 2016 2017 For Sohu (excluding Sohu Video) share-based awards $ 27,811 $ 2,761 $ 652 For Sogou share-based awards (2) 10,310 8,802 27,729 For Changyou share-based awards 15,024 8,402 17,394 For Sohu Video share-based awards (1) 298 (845 ) (298 ) $ 53,443 $ 19,120 $ 45,477 Note (1): The negative amount resulted from re-measured Note (2): Compensation expense for Sogou share-based awards also includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search and search-related businesses and compensation expense of $4.0 million, recognized in the first quarter of 2017 in connection with Sogou’s repurchase of Sogou Pre-IPO Pre-IPO There was no capitalized share-based compensation expense for the years ended December 31, 2017, 2016 and 2015. |
Advertising and Promotional Exp
Advertising and Promotional Expenses, included in Sales and Marketing Expenses | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017, 2016 and 2015, advertising and promotional expenses recognized in the consolidated statements of comprehensive income were $249.7 million, $270.2 million and $196.9 million, respectively. |
Other Income _(Expense), net
Other Income /(Expense), net | 12 Months Ended |
Dec. 31, 2017 | |
OTHER INCOME /(EXPENSE), NET [Abstract] | |
Other Income /(Expense), net | 6. OTHER INCOME /(EXPENSE), NET The following table summarizes the Sohu GroupÂ’s other income /(expense) (in thousands): Year Ended December 31, 2015 2016 2017 Investment income/(expense) (1) $ 60,264 $ (1,908 ) $ (2,051 ) Gain from the changes in fair value of financial instruments 9,374 13,133 6,665 Government grant 2,839 2,112 2,166 Donations (2) (1,192 ) (27,982 ) (218 ) Write-off of unpaid long-term accounts payable 0 0 2,031 Impairment loss on available-for-sale 0 0 (5,754 ) Others 3,241 3,932 3,819 $ 74,526 $ (10,713 ) $ 6,658 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. Note (2): In the second quarter of 2016, the Sohu Group recognized a one-time Note (3): In the third quarter of 2017, the Group recognized an impairment loss of $5.8 million that was related to Keyeast, an investment measured as available-for-sale |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2017 | |
BALANCE SHEET COMPONENTS [Abstract] | |
Balance Sheet Components | 7. BALANCE SHEET COMPONENTS (IN THOUSANDS) As of December 31, 2015 2016 2017 Accounts receivable, net Accounts receivable $ 277,593 194,008 256,131 Allowance for doubtful accounts (3,976 ) (4,841 ) (5,663 ) $ 273,617 189,167 250,468 The following table presents the movement of allowances for doubtful accounts for the years 2015, 2016 and 2017: Balance at the Additional provision Write-offs Exchange difference Balance at the 2015 4,068 2,175 (2,064 ) (203 ) 3,976 2016 3,976 7,109 (5,992 ) (252 ) 4,841 2017 4,841 9,076 (8,634 ) 380 5,663 As of December 31, 2016 2017 Prepaid and other current assets Prepaid content and license $ 119,810 $ 35,442 Prepaid taxes 30,308 35,551 Matching loan due from a related party (See Note 8) 29,019 32,005 Loans to third parties 25,494 28,544 Due from Shenzhen 7Road 12,509 5,344 Prepaid cost of revenue 10,085 14,782 Prepaid rental deposit 9,817 9,314 Receivables from third party payment platforms 4,027 3,350 Employee advances 4,013 4,109 Interest receivable 1,595 2,515 Prepaid advertising and promotion fees 1,506 3,371 Prepaid office rent and facilities expenses 1,378 3,265 Others 10,572 15,083 $ 260,133 $ 192,675 Prepaid non-current Prepaid PRC income tax for the sale of assets associated with 17173.com by Sohu to Changyou $ 4,733 $ 4,020 Others 1 191 $ 4,734 $ 4,211 Other short-term liabilities Deposit received from membership card buyers $ 61,708 $ 29,889 Matching loan due to a related party (See Note 8) 28,678 31,192 Contract deposits from advertisers 24,385 29,078 Donation payable 17,299 7,652 Consideration payable for equity investment 5,280 6,427 Early exercise of Sogou share options for trust arrangements 4,504 4,503 Accrued liabilities to suppliers 3,817 6,725 Employee individual income tax withholding for options 2,382 0 Accrued business tax arising from the sale of assets associated with 17173.com by Sohu to Changyou 1,625 0 Government grant 0 765 Foreign exchange forward contracts 0 715 Others 9,637 19,354 $ 159,315 $ 136,300 Receipts in advance and deferred revenue Receipts in advance relating to: - brand advertising business $ 12,332 $ 12,858 - search and search-related business 59,593 66,223 - online game business 15,225 18,498 - others business 2,732 5,327 Total receipts in advance 89,882 102,906 Deferred revenue 29,069 24,852 $118,951 $127,758 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Related Party Transactions | 8. RELATED PARTY TRANSACTIONS Under an agreement between Sohu and Fox Financial entered into in August 2014, Sohu invested $4.8 million and $16.1 million, respectively, in Fox Financial in August 2014 and April 2015. In February 2016, Sohu invested an additional $10.5 million in Fox Financial, see Note 10 – Fair Value Measurements - Other Financial Instruments - Long-term Investments. Changyou’s Loan Arrangements with Fox Financial Technology Group Limited (“Fox Financial,” formerly known as “SoEasy Internet Finance Group Limited”) Commencing in April 2015, certain subsidiaries of Changyou and certain subsidiaries of Fox Financial entered into a series of loan agreements pursuant to which the subsidiaries of Changyou are entitled to draw down HK dollar-denominated or U.S. dollar-denominated loans from the Fox Financial subsidiaries and the Fox Financial subsidiaries are entitled to draw down equivalent RMB-denominated During the first quarter of 2016, Changyou drew down from Fox Financial U.S. dollar-denominated loans of approximately $29.9 million and granted RMB-denominated RMB-denominated RMB-denominated As of December 31, 2017, Changyou had U.S. dollar-denominated loans payable to Fox Financial in a total amount of approximately $29.8 million, which was recorded in other short-term liabilities, and RMB-denominated Other Information For the years of 2017 and 2016, the Sohu Group generated brand advertising revenue from Fox Financial of nil and $0.9 million, respectively, and incurred sales and marketing expense for Fox Financial of nil and $0.2 million, respectively. |
Intra-Group Loan and Share Pled
Intra-Group Loan and Share Pledge Agreement | 12 Months Ended |
Dec. 31, 2017 | |
INTRA-GROUP LOAN AND SHARE PLEDGE AGREEMENT [Abstract] | |
Intra-Group Loan and Share Pledge Agreement | 9. INTRA-GROUP LOAN AND SHARE PLEDGE AGREEMENT On October 24, 2016, Beijing Sohu New Media Information Technology Co., Ltd. (“Sohu Media”), a subsidiary of Sohu, entered into a loan agreement (the “Loan Agreement”) with Beijing AmazGame Age Internet Technology Co., Ltd. (“AmazGame”), a subsidiary of Changyou, pursuant to which Sohu Media may borrow from time to time from AmazGame up to RMB1.00 billion (or approximately $144.9 million). Principal amounts outstanding under the Loan Agreement bear interest at an annual rate of 6%. The outstanding principal of each advance will be due one year from the date of the advance, subject to extension for an additional year with the consent of AmazGame. Also on October 24, 2016, Sohu.com (Game) Limited (“Sohu Game”), a Cayman Islands company that is an indirect subsidiary of Sohu and is the direct parent of Changyou, and Changyou entered into a share pledge agreement (the “Share Pledge Agreement”) pursuant to which Sohu Game pledged to Changyou 11,386,228 Class B ordinary shares of Changyou held by Sohu Game. The number of Changyou Class B ordinary shares pledged by Sohu Game to Changyou is subject to upward adjustment from time to time while amounts are outstanding under the Loan Agreement if the price of Changyou’s American depositary shares (“ADSs”) on the NASDAQ Global Select Market drops for at least 10 consecutive trading days by an amount of 20% or more from such price as of the date of the Share Pledge Agreement, and is subject to further upward adjustment in the event of any additional incremental drops of 20% or more in the price of Changyou’s ADSs during 10 consecutive trading days. The share pledge agreement gives Changyou the right to apply the outstanding principal and accrued interest on the loan to the repurchase of Changyou Class B ordinary shares from Sohu Game in the event that such principal and interest under the Loan Agreement are not paid when due. As of December 31, 2017, the number of Class B ordinary shares pledged by Sohu Game to Changyou was 13,704,663. In December 2016, March 2017 and April 2017, Sohu Media received RMB500.0 million (or approximately $73.8 million), RMB200.0 million (or $29.5 million) and RMB 300.0 million (or $44.3 million), respectively, from AmazGame. As of December 31, 2017, the total outstanding balance of the loan was RMB1.00 billion (or $153.0 million). The intra-Group loan has been eliminated upon consolidation. In December 2017, Sohu Media and AmazGame entered into an agreement extending the due date of each advance for an additional year. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Fair Value Measurements | 10. FAIR VALUE MEASUREMENTS Fair Value of Financial Instruments The Sohu Group’s financial instruments consist primarily of cash equivalents, short-term investments, accounts receivable, prepaid and other current assets, long-term investments (including available-for-sale 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, 2016 (in thousands): Fair value measurements at reporting date using Items As of Quoted Prices Significant Significant Cash equivalents $ 626,697 $ 0 $ 626,697 $ 0 Short-term investments 247,926 0 247,926 0 Available-for-sale 10,381 10,381 0 0 Foreign exchange forward contracts recognized in prepaid and other current assets 3,040 0 3,040 0 The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy, as of December 31, 2017 (in thousands): Fair value measurements at reporting date using Items As of Quoted Prices Significant Significant Cash equivalents $ 1,136,892 $ 0 $ 1,136,892 $ 0 Short-term investments 818,934 0 818,934 0 Available-for-sale 21,307 21,307 0 0 Foreign exchange forward contracts recognized in other short-term liabilities 715 $ 0 $ 715 $ 0 Cash Equivalents The Sohu Group’s cash equivalents mainly consist of time deposits with original maturities of three months or less, notice deposit and highly liquid investments that are readily convertible to known amounts of cash. 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. Short-term Investments In accordance with ASC 825 As of December 31, 2017 and 2016, the Sohu Group’s investment in financial instruments was $818.9 million and $247.9 million, respectively. 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, 2017, 2016 and 2015, the Sohu Group recorded in the consolidated statements of comprehensive income gain from changes in the fair value of short-term investments in the amounts of $13.9 million, $10.1 million and $9.4 million, respectively. Available-for-Sale Available-for-sale 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 available-for-sale On May 5, 2011, Sohu acquired 2% of the equity interests of Hylink Digital Solution Co., Ltd (“Hylink”), for a purchase price of RMB15 million ($2.3 million). Given that Sohu neither controls nor has significant influence over Hylink, and the equity interest of Hylink did not have a readily determinable fair value, Sohu accounted for this investment using the cost method. On August 2, 2017, Hylink completed its IPO on the Shanghai Stock Exchange. Upon the completion of Hylink’s IPO, Sohu’s interest in Hylink was diluted to 1.5% of Hylink’s total ordinary shares then outstanding. The Sohu Group reclassified this investment as available-for-sale available-for-sale Assets and Liabilities Held for Sale In 2016, Changyou’s Board of Directors approved the disposal of the 51% equity interest in MoboTap. Accordingly, the assets and liabilities attributable to MoboTap are classified as assets and liabilities held for sale and measured at the lower of their carrying amounts or their fair value, less cost to sell, in the Sohu Group’s consolidated balance sheet as of December 31, 2016. Due to the suspension of negotiations with a potential buyer of MoboTap in the first quarter of 2017, Changyou’s management determined that the disposal was unlikely to be completed within one year. As a result, the assets held for sale and liabilities held for sale related to MoboTap were reclassified and recorded as assets and liabilities held for use and measured at the lower of the carrying value before MoboTap was classified as held for sale, adjusted for any depreciation and amortization expenses that would have been recognized had the assets and liabilities been continuously classified as held for use, or their fair value as of the reclassification date, respectively, in the Sohu Group’s consolidated balance sheet since the reclassification date. In the first quarter of 2017, Changyou recorded a $1.4 million expense in the consolidated statements of comprehensive income for catch-up Foreign Exchange Forward Contracts In September 2016 and January 2017, Changyou entered into foreign exchange forward contracts with banks in aggregate notional amounts of $100 million and $50 million, respectively. Changyou entered into such foreign exchange forward contracts in compliance with its risk management policy for the purpose of eliminating the negative impact on earnings and equity resulting from fluctuations in the exchange rate between the U.S. dollar and the RMB. The Group estimated the fair values of foreign exchange forward contracts using the Black-Scholes model. The fair values of the forward contracts were estimated based on quoted forward exchange prices at the reporting date. The Group classifies the fair value measurement of the forward contracts based on such inputs as Level 2 of fair value measurements. For the years ended December 31, 2016 and 2017, the Sohu Group recorded gain of $3.0 million and a loss of $7.2 milllion, respectively, resulting from changes in the fair values of forward contracts in the consolidated statements of comprehensive income, and cash outflows related to the forward contracts of nil and $3.5 million, respectively, in the consolidated statements of cash flows. As of December 31, 2016 and 2017, the aggregate notional amounts of the foreign exchange forward contracts were $100 million and $10 million. As of December 31, 2017, the carrying value of the foreign exchange forward contracts recognized in other short-term liabilities was $0.7 million. Other Financial Instruments The fair values of other financial instruments are estimated for disclosure purposes as follows: Long-term Investment Long-term Investment in Fox Financial Under an agreement between Sohu and Fox Financial entered into in August 2014, Sohu invested $4.8 million and $16.1 million in Fox Financial on August 2014 and April 2015, respectively. In February 2016, Sohu invested an additional $10.5 million in Fox Financial. Sohu accounted for its investments in Fox Financial under long-term investments. These investments include both preferred shares and common shares. Sohu accounted for its investment in Fox Financial’s preferred shares under the cost method, since they were not considered to be common shares in substance and had no readily determinable fair value. Sohu accounted for its investment in Fox Financial’s common shares under the equity method, since Sohu can exercise significant influence through its board seat in Fox Financial, but does not own a majority of Fox Financial’s equity capital or control Fox Financial. In March 2017, Fox Financial issued additional common shares to new investors, while shares held by Sohu remained unchanged. As a result, Sohu’s shareholding percentage of common shares was diluted from 7% to 6%. In accordance with ASC 320-10-40 Long-term Investment in Zhihu As of December 31, 2017, Sogou had invested a cumulative total of $18.9 million in 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 and the underlying shares are not considered in-substance 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 receivables and payables, the Group estimated fair values using the discounted cash flow method. The Group classifies the valuation technique as Level 2 of fair value measurements. Short-term Bank Loans 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 estimated fair values using the discounted cash flow method and classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. - In May 2017, Sohu entered into a one year factoring contract with recourse with HSBC, pursuant to which Sohu may borrow from HSBC from time to time up to a combined aggregate of RMB180.0 million (or $27.1 million), which is the upper limit reviewed by HSBC at least annually. The loan is secured by up to RMB198.0 million (or $29.8 million) of Sohu’s accounts receivable and guaranteed by Sohu Media. Interest will accrue on the principal amounts of the loans outstanding at an annual rate published by the People’s Bank of China (the “PBOC”). As of December 31, 2017, the total outstanding balance of the loan was nil. - In May 2017, Sohu entered into credit agreements with Ping An Bank pursuant to which Sohu was entitled to borrow from Ping An Bank from time to time until May 18, 2020 up to a combined aggregate of RMB2.50 billion (or $376.7 million). The loan was initially secured by pledges of Sohu’s two buildings and guaranteed by Sohu.com (Game) Limited (“Sohu Game”). The initial interest rate for the loans was an annual rate equal to 115% of the rate published by the PBOC. In July 2017, Sohu entered into an amendment of its loan arrangements with Ping An Bank pursuant to which interest on outstanding principal amounts will accrue at a rate designated separately upon each drawdown based on the benchmark loan rate published by the PBOC with reference to then prevailing market interest rates. In July 2017, Sohu drew down from Ping An Bank pursuant to the loan arrangements a loan with a term of 12 months in the amount of RMB400.0 million (or approximately $59.0 million) and an interest rate of 6.525%, which is 150% of the rate published by the PBOC as of the date of the drawdown. In September 2017, Sohu entered into another amendment of its loan arrangements with Ping An Bank pursuant to which the maximum amount that Sohu is entitled to borrow has been reduced from RMB2.50 billion (or $376.7 million) to RMB600 million (or $90.4 million), and one of Sohu’s buildings was released from the pledge. As of December 31, 2017, the total outstanding balance of the loan was RMB400.0 million (or $61.2 million). Long-term Payables Long-term accounts payable 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, 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 2 of fair value measurements. In September 2017, Sohu entered into credit agreements with the Industrial and Commercial Bank of China Limited (“ICBC”) pursuant to which Sohu will be entitled to borrow from ICBC from time to time until March 31, 2018 up to a combined aggregate of RMB800 million (or $123 million). The outstanding principal amount of the loan will be payable in four equal installments, with the first installment payable 18 months after the drawdown and the other three installments payable semi-annually at the end of each of the three successive six-month 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, 2016 and 2017 (in thousands): Fair value measurements at reporting date using Items As of Quoted Prices in Significant Other Significant Purchased video content recorded in prepaid and other assets $ 75,389 $ 0 $ 0 $ 75,389 Intangible assets, net 32,131 0 0 32,131 Goodwill 68,290 0 0 68,290 Fair value measurements at reporting date using Items As of Quoted Prices in Significant Other Significant Purchased video content recorded in prepaid and other assets $ 10,192 $ 0 $ 0 $ 10,192 Intangible assets, net 23,060 0 0 23,060 Goodwill 71,565 0 0 71,565 Purchased Video Content Recorded in Prepaid and Other Assets The impairment losses recognized in prepaid and other assets were mainly due to impairment losses for Sohu Video’s purchased video content. See Note 13 - Intangible Assets, Net. Intangible Assets Intangible assets mainly comprise domain names and trademarks, developed technologies, computer software, purchased video content, cinema advertising slot rights, and operating rights for licensed games. The impairment losses recognized for intangible assets were mainly due to impairment losses for Sohu Video’s purchased video content and impairment losses for Changyou’s MoboTap business. See Note 13 - 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. The impairment losses recognized for goodwill were mainly due to MoboTap. See Note 12 - Goodwill. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2017 | |
FIXED ASSETS [Abstract] | |
Fixed Assets | 11. FIXED ASSETS The following table summarizes the Sohu GroupÂ’s fixed assets (in thousands): As of December 31, 2016 2017 Fixed assets, net Office buildings $ 368,758 $ 391,490 Computer equipment and hardware 323,592 388,693 Leasehold and building improvements 46,164 45,849 Office furniture 9,789 9,879 Vehicles 3,480 4,029 Fixed assets, gross 751,783 839,940 Accumulated depreciation (248,152 ) (310,223 ) $ 503,631 $ 529,717 For the years ended December 31, 2017, 2016 and 2015, depreciation expenses for fixed assets were $83.1 million, $73.4 million and $77.4 million, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
GOODWILL [Abstract] | |
Goodwill | 12. GOODWILL Changes in the carrying value of goodwill by segment are as follows (in thousands): Sohu Sogou Changyou Total 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 Transactions in 2016 Goodwill associated with MoboTap and transferred to assets held for sale 0 0 (83,470 ) (83,470 ) Foreign currency translation adjustment (969 ) (380 ) (1,110 ) (2,459 ) Balance as of December 31, 2016 $ 36,223 $ 5,565 $ 26,502 $ 68,290 Balance as of December 31, 2016 Goodwill 72,011 5,565 96,949 174,525 Accumulated impairment losses (35,788 ) 0 (70,447 ) (106,235 ) $ 36,223 $ 5,565 $ 26,502 $ 68,290 Transactions in 2017 Goodwill associated with MoboTap reclassified from assets held for sale to assets held for use 0 0 83,470 83,470 Goodwill impairment recognized for MoboTap 0 0 (83,470 ) (83,470 ) Goodwill associated with an acquisition 1,000 0 0 1,000 Foreign currency translation adjustment 930 343 1,002 2,275 Balance as of December 31, 2017 $ 38,153 $ 5,908 $ 27,504 $ 71,565 Balance as of December 31, 2017 Goodwill 73,941 5,908 181,421 261,270 Accumulated impairment losses (35,788 ) 0 (153,917 ) (189,705 ) $ 38,153 $ 5,908 $ 27,504 $ 71,565 In 2017, there was one reporting unit under the Sohu segment and 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. In the third quarter of 2017, due to reinforced restrictions Chinese regulatory authorities imposed on online card and board games, some of Changyou’s key distribution partners informed Changyou that they had decided to stop the distribution and promotion of card and board games in the third quarter of 2017, which had an adverse impact on MoboTap’s current performance, and also increased the uncertainty for its future operations and cash flow. As a result, Changyou determined that it was unlikely that MoboTap would gain users and grow its online card and board games revenues in China, Changyou management performed an impairment test in the third quarter of 2017 using the discounted cash flow method, and an impairment loss of $83.5 million was recognized for goodwill to reflect the fair value of the MoboTap business. In the fourth quarter of 2017, the Sohu Group tested goodwill for impairment at the reporting unit level. The Group performed impairment tests using the qualitative and quantitative methods. For the Sohu and Sogou segments, impairment tests were conducted by quantitatively comparing the fair values of the reporting units to their carrying amounts. The Sohu and Sogou segments 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, Changyou first qualitatively assessed whether it was more likely than not that the fair values of the reporting segments were less than their carrying amounts. For those reporting units where it was more likely than not that their fair values were less than their carrying amounts, Changyou performed the first step of a two-step In 2016, Changyou’s Board of Directors approved the disposal of the 51% equity interest in MoboTap held by Changyou. As of December 31, 2016, Changyou was negotiating with a potential buyer on the terms of disposal. Accordingly, the assets and liabilities of MoboTap were recognized as “assets held for sale” and “liabilities held for sale,” respectively. As of December 31, 2016, goodwill in the amount of $83.5 million was reclassified from goodwill to “assets held for sale.” See Note-10-Assets In 2015, Changyou recognized a $29.6 million goodwill impairment loss related to MoboTap, as Changyou’s management concluded that the Dolphin Browser was unable to provide expected synergies with Changyou’s platform business. Changyou also recognized a $1.9 million 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. Doyo was disposed of at the end of 2015. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2017 | |
INTANGIBLE ASSETS, NET [Abstract] | |
Intangible Assets, Net | 13. INTANGIBLE ASSETS, NET The following table summarizes the Sohu Group’s intangible assets, net, as of December 31, 2016 and 2017 (in thousands): As of December 31, 2016 Items Gross Accumulated Impairment Net Purchased video content $ 181,100 $ (159,549 ) $ (12,759 ) $ 8,792 Operating rights for licensed games 30,497 (13,178 ) (9,208 ) 8,111 Domain names and trademarks 29,466 (9,872 ) (9,758 ) 9,836 Computer software 16,521 (13,015 ) 0 3,506 Developed technologies 8,818 (1,252 ) (7,369 ) 197 Cinema advertising slot rights 3,199 (2,625 ) 0 574 Others 11,568 (4,398 ) (6,055 ) 1,115 Total $ 281,169 $ (203,889 ) $ (45,149 ) $ 32,131 As of December 31, 2017 Items Gross Accumulated Impairment Net Purchased video content $ 152,135 $ (135,177 ) $ (11,275 ) $ 5,683 Operating rights for licensed games 34,296 (17,882 ) (10,924 ) 5,490 Domain names and trademarks 33,630 (11,144 ) (13,279 ) 9,207 Computer software 17,413 (15,401 ) 0 2,012 Developed technologies 19,300 (5,020 ) (14,089 ) 191 Cinema advertising slot rights 0 0 0 0 Others 25,051 (15,189 ) (9,385 ) 477 Total $ 281,825 $ (199,813 ) $ (58,952 ) $ 23,060 Impairment Losses In 2017, Sohu recognized $70.6 million in losses related to Sohu Video’s purchased video content, of which $43.1 million was recognized as impairment of intangible assets and $27.5 million was recognized as impairment of prepaid and other current assets. The impairment losses incurred were mainly due to Sohu Video’s restructuring of its sales team and a strategy shift from purchasing expensive head content to self-producing content. Revenues for 2017 did not meet management’s expectations. In addition, Changyou recognized a $3.4 million impairment loss related to intangible assets for its MoboTap business, mainly due to reinforced restrictions that Chinese regulatory authorities imposed on online card and board games, which had an adverse impact on MoboTap’s current performance, and also increased the uncertainty for its future operations and cash flow. In 2016, the Group recognized $22.9 million in losses for impairment related to Sohu Video’s purchased video content and Changyou purchased content and license rights to games. Impairment losses recognized consisted primarily of impairment losses incurred by Sohu of $18.6 million, including $2.9 million for intangible assets and $15.7 million for prepaid and other current assets, mainly due to the restructuring of the sales team of Sohu Video, which had an adverse impact on Sohu Video’s performance for 2016 and resulted in a lowering of management’s expectations of the programming usefulness of certain Sohu Video’s purchased video content. 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 intangible as part of acquisition of a business.” The impaired intangible assets primarily consist of user base, technology, trademark and license rights. Amortization In 2017, 2016 and 2015, amortization of intangible assets was $140.7 million, $131.2 million and $161.1 million, respectively. As of December 31, 2017, amortization expenses for future periods are estimated to be as follows: For the year ending December 31, (in thousands) 2018 $ 8,924 2019 5,139 2020 1,295 2021 1,274 2022 1,070 Thereafter 5,358 Total expected amortization expense $ 23,060 |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2017 | |
TAXATION [Abstract] | |
Taxation | 14. TAXATION Income Tax Expense and Effective Tax Rate Income Tax Expense 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. Sohu.com Inc. is Delaware corporation that is subject to United States (“U.S.”) income tax. The components of income before income taxes are as follows (in thousands): Year ended December 31, 2015 2016 2017 Income /(loss) before income tax expense Income /(loss) from China operations $ 171,636 $ (88,440 ) $ (75,893 ) Income /(loss) from non-China 14,155 (5,461 ) (120,962 ) Total income /(loss) before income tax expense $ 185,791 $ (93,901 ) $ (196,855 ) Income tax expense applicable to China operations Current tax $ 55,532 $ 13,635 $ 57,413 Deferred tax 8,735 8,500 380 Subtotal income tax expense applicable to China operations 64,267 22,135 57,793 Non China income tax expense/(benefit) 11,291 (2,134 ) 214,737 Non China withholding tax expense 1,378 1,071 618 Total income tax expense $ 76,936 $ 21,072 $ 273,148 In 2017, of the $273.1 million income tax expense, $57.8 million was for PRC tax, mainly attributable to the Sohu Group’s business operations and $214.7 million was for U.S. corporate income tax, resulting primarily from a one-time non-U.S. “One-Time 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, 2015 2016 2017 Tax holiday effect $ 19,626 $ 30,872 $ 17,736 Basic net income per share effect 0.51 0.80 0.46 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, 2015 2016 2017 U.S. federal statutory rate: 35 % 35 % 35 % Effect of tax holidays applicable to subsidiaries and consolidated VIEs (1) (11 %) 33 % 9 % Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs (13 %) (3 %) (11 %) Effect of withholding taxes 2 % (4 %) (2 %) Changes in valuation allowance for deferred tax assets 31 % (91 %) (57 %) Others (3 %) 8 % (2 %) 41 % (22 %) (28 %) Note (1): The reversal of income tax for preferential income tax rates that Changyou’s and Sogou’s subsidiaries and VIEs were entitled to as KNSEs or Software Enterprises for 2015, 2016 and 2017 was included in the “Effect of tax holidays applicable to subsidiaries and consolidated VIEs” in the above table. The U.S. Tax Reform signed into law on December 22, 2017 significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time one-time U.S. Corporate Income Tax One-Time PRC Corporate Income Tax Principal Entities Qualified as HNTEs 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%, but need to re-apply As of December 31, 2017, the following principal entities of the Sohu Group were qualified as HNTEs and were entitled to an income tax rate of 15%. For Sohu’s Business - Beijing Sohu New Momentum Information Technology Co., Ltd. (“Sohu New Momentum”). Sohu New Momentum qualified as an HNTE for the years 2016 through 2018, and will need to re-apply - Beijing Sohu Internet Information Service Co., Ltd. (“Sohu Internet”). Sohu Internet qualified as an HNTE for the years 2015 through 2017, and will need to re-apply - Sohu Media and Guangzhou Qianjun. Sohu Media and Guangzhou Qianjun re-applied re-apply For Sogou’s Business - Beijing Sogou Information Service Co., Ltd. (“Sogou Information”). Sogou Information qualified as an HNTE for the years 2015 through 2017, and will need to re-apply - Beijing Sogou Technology Development Co., Ltd. (“Sogou Technology”). Sogou Technology re-applied re-apply - Beijing Sogou Network Technology Co., Ltd. (“Sogou Network”). Sogou Network qualified as an HNTE for the years 2016 through 2018, and will need to re-apply For Changyou’s Business - Beijing Gamease Age Digital Technology Co., Ltd. (“Gamease”) and Beijing AmazGame Age Internet Technology Co., Ltd. (“AmazGame”). Gamease and AmazGame re-applied re-apply - Beijing Changyou Gamespace Software Technology Co., Ltd. (“Gamespace”). Gamespace qualified as an HNTE for the years 2017 through 2019, and will need to re-apply Principal Entities Qualified as Software Enterprises and KNSE The CIT Law and its implementing regulations provide that a “Software Enterprise” is entitled to 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” (a “KNSE”) is entitled to a further reduced preferential income tax rate of 10%. Enterprises wishing to enjoy the status of a Software Enterprise or a KNSE must perform a self-assessment each year to ensure they meet the criteria for qualification and file required supporting documents with the tax authorities before using the preferential CIT rates. These enterprises will be subject to the tax authorities’ assessment each year as to whether they are entitled to use the relevant preferential CIT treatments. If at any time during the preferential tax treatment years an enterprise uses the preferential CIT rates but the relevant authorities determine that it fails to meet applicable criteria for qualification, the relevant authorities may revoke the enterprise’s Software Enterprise/KNSE status. For Sohu’s Business - Sohu New Momentum. In 2017, Sohu New Momentum completed a self-assessment, filed required supporting documents, and was qualified as a Software Enterprise, which entitled it to the first year of an income tax rate reduction from 25% to 12.5% for 2016. Sohu New Momentum will follow the same process in 2018 to entitle it to the second year of an income tax rate reduction from 25% to 12.5% for 2017. For Sogou’s Business - Sogou Technology. In 2017, Sogou Technology completed a self-assessment and filed required supporting documents for KNSE status for 2016. In 2017, Sogou Technology was qualified as a KNSE after the relevant government authorities’ assessment and was entitled to a preferential income tax rate of 10% for 2016. Sogou Technology will follow the same process in 2018 for KNSE status for 2017. For Changyou’s Business - Baina (Wuhan) Information Technology Co., Ltd. (“Wuhan Baina Information”). In 2017, Wuhan Baina Information completed a self-assessment, filed required supporting documents, and was qualified as a Software Enterprise, which entitled it to the first year of an income tax exemption for 2016. Wuhan Baina Information will follow the same process in 2018 to entitle it to the second year of an income tax exemption for 2017. - AmazGame. In 2017, AmazGame completed a self-assessment and filed required supporting documents for KNSE status for 2016. Also in 2017, AmazGame was qualified as a KNSE after the relevant government authorities’ assessment and was entitled to a preferential income tax rate of 10% for 2016. AmazGame will follow the same process in 2018 for KNSE status for 2017. 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 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 In order to fund the distribution of a dividend to shareholders of the Sohu Group’s majority-owned subsidiary Changyou, Changyou’s management determined to cause one of its PRC subsidiaries to declare and distribute a cash dividend of all of its stand-alone 2012 earnings and half of its stand-alone subsequent years’ earnings to its direct overseas parent company, Changyou.com (HK) Limited (“Changyou HK”). As of December 31, 2017, Changyou had accrued deferred tax liabilities in the amount of $31.0 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 On May 1, 2016, the transition from the imposition of PRC business tax (“Business Tax”) to the imposition of VAT was expanded to all industries in China, and as a result all of the Sohu Group’s revenues have been subject to VAT since that date. 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 the available input VAT amount (at the rate applicable to the supplier). 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 21% for taxable years beginning after December 31, 2017 and U.S. corporate income tax on its taxable income of up to 35% for prior tax years. The U.S. Tax Reform signed into law on December 22, 2017 significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time one-time The U.S. Tax Reform also includes provisions for a new tax on GILTI effective for tax years of foreign corporations beginning after December 31, 2017. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of controlled foreign corporations (“CFCs”), subject to the possible use of foreign tax credits and a deduction equal to 50 percent to offset the income tax liability, subject to some limitations. The Company’s management is still evaluating the effect of the U.S. Tax Reform on Sohu.com Inc. Management may update its judgment of that effect based on its continuing evaluation and on future regulations or guidance issued by the U.S. Department of the Treasury, and specific actions the Company may take in the future. To the extent that portions of Sohu.com Inc.’s U.S. taxable income, such as Subpart F income or GILTI, are determined to be from sources outside of the U.S., subject to certain limitations, Sohu.com Inc. may be able to claim foreign tax credits to offset its U.S. income tax liabilities. If dividends that Sohu.com Inc. receives from its subsidiaries are determined to be from sources outside of the U.S., subject to certain limitations, Sohu.com Inc. will generally not be required to pay U.S. corporate income tax on those dividends. Any liabilities for U.S. corporate income tax will be accrued in the Company’s consolidated statements of comprehensive income and estimated tax payments will be made when required by U.S. law. 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, 2016 2017 Deferred tax assets: Net operating loss from operations $ 206,967 $ 245,534 Accrued bonus and commissions 22,069 25,164 Intangible assets transfer 746 538 Others 7,525 10,307 Total deferred tax assets 237,307 281,543 Less: Valuation allowance (216,176 ) (256,347 ) Net deferred tax assets $ 21,131 $ 25,196 Deferred tax liabilities Withholding tax for Dividend $ (26,002 ) $ (30,992 ) Deferred U.S. tax (9,175 ) (5,498 ) Intangible assets from business acquisitions (1,273 ) (1,247 ) Others (3,334 ) (5,655 ) Total deferred tax liabilities $ (39,784 ) $ (43,392 ) As of December 31, 2017, the Group had net operating losses from PRC entities of approximately $962.6 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 may not be utilized based on its estimate of the operation performance of these PRC entities; therefore, $238.4 million in deferred tax assets generated from net operating losses were offset by a valuation allowance. The following table sets forth the movement of the valuation allowances for deferred tax assets for the years presented (in thousands): For the Year Ended 2015 2016 2017 Beginning balance $ 110,788 146,930 216,176 Provision for the year 71,991 89,603 66,090 Reversal for the year (30,549 ) (10,952 ) (39,004 ) Foreign currency translation adjustment (5,300 ) (9,405 ) 13,085 Ending balance $ 146,930 216,176 256,347 In 2017, $63.8 million of PRC net operating losses generated from previous years expired. The remaining PRC net operating losses will expire successively commencing in 2017. One-Time In the fourth quarter of 2017, the Group recognized a one-time non-U.S. one-time Uncertain Tax Positions The Sohu Group did not have any significant unrecognized uncertain tax positions for the year ended December 31, 2017. The Group did not have any significant penalties or interest associated with tax positions for the year ended December 31, 2017. The following table summarizes the Group’s recognized uncertain tax positions from January 1, 2015 to December 31, 2017 (in thousands): As of December 31, 2015 2016 2017 Beginning balance $ 24,515 $ 39,244 $ 32,682 Decreases related to prior year tax positions 0 (6,649 ) (1,544 ) Increases related to current year tax positions 14,729 87 0 Ending balance $ 39,244 $ 32,682 $ 31,138 In 2017, the decreases related to prior year tax positions mainly represented write-offs of $2.4 million related to uncertain tax positions generated in 2009 and 2013. In 2016, the decreases related to prior year tax positions mainly represented a payment of $5.3 million to PRC tax authorities for a portion of an uncertain tax position arising from certain equity transactions recognized in 2013. The Group does not anticipate that the uncertain tax positions will significantly increase or decrease within twelve months from December 31, 2017. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Commitments and Contingencies | 15. COMMITMENTS AND CONTINGENCIES Contractual Obligations The following table sets forth the Group’s contractual obligations as of December 31, 2017 (in thousands): 2018 2019 2020 2021 2022 Thereafter Total Purchase of cinema advertisement slot rights 67,942 52,508 26,524 8,249 1,305 1,301 157,829 Purchase of bandwidth 67,827 1,398 1,196 327 0 0 70,748 Purchase of content and services – video 38,224 19,007 1,134 0 0 0 58,365 Operating lease obligations (1) 18,025 9,118 3,842 666 61 10 31,722 Expenditures for operating rights for licensed games with technological feasibility 19,844 1,039 0 0 0 0 20,883 Purchase of content and services – others 7,019 971 77 32 0 0 8,099 Fees for operating rights for licensed games in development 2,447 0 0 0 0 0 2,447 Others 4,721 377 87 0 0 0 5,185 Total Payments Required 226,049 84,418 32,860 9,274 1,366 1,311 355,278 Note (1): For the years ended December 31, 2017, 2016 and 2015, rental expense included in the operating lease was approximately $23.9 million, $23.9 million, and $27.9 million, respectively. Litigation The Sohu Group is a party to various litigation matters which it considers routine and incidental to its business. The Sohu Group records a liability when the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. The Sohu Group evaluates, on a regular basis, developments in litigation matters that could affect the amount of liability that has been previously accrued and makes adjustments as appropriate. Management believes that the total liabilities to the Sohu Group that may arise as a result of currently pending legal proceedings will not have a material adverse effect on the Group’s business, results of operations, financial condition and cash flows. As of December 31, 2017, Sohu and Changyou had no significant litigation contingencies, and Sogou had recorded estimated liabilities of $3.8 million litigation contingencies as a component of accrued and other short-term liabilities related to its currently pending proceedings. 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 advertising, online game, and other 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 Group’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 Group’s VIE structure are discussed in Note 16 - VIEs. Regulatory risks also encompass interpretation by PRC tax authorities of current tax law, including the applicability of certain preferential tax treatments. The Sohu Group’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. |
VIEs
VIEs | 12 Months Ended |
Dec. 31, 2017 | |
VIES [Abstract] | |
VIEs | 16. 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, 2017, the aggregate amount of these loans was $9.4 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, 2017, the registered capital and PRC statutory reserves of the consolidated VIEs totaled $80.6 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 and Subsidiaries of Principal VIEs For Sohu’s Business - High Century Beijing Century High Tech Investment Co., Ltd. (“High Century”) was incorporated in 2001. As of December 31, 2017, 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. - 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, 2017, 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. - Sohu Internet Sohu Internet was incorporated in 2003. As of December 31, 2017, 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. As of December 31, 2017, the registered capital of Donglin was $1.5 million and Sohu Internet held a 100% interest in this entity. - Tianjin Jinhu Tianjin Jinhu Culture Development Co., Ltd. (“Tianjin Jinhu”) was incorporated in 2011. In October, 2016, Ye Deng transferred its 50% equity interest in Tianjin Jinhu to Xiufeng Deng. As of December 31, 2017, the registered capital of Tianjin Jinhu was $0.5 million and Xiufeng Deng and Xuemei Zhang each held a 50% interest in this entity. - Guangzhou Qianjun Guangzhou Qianjun was acquired in November 2014. As of December 31, 2017, the registered capital of Guangzhou Qianjun was $3.3 million and Tianjin Jinhu held a 100% interest in this entity. - Focus Interactive Beijing Focus Interactive Information Service Co., Ltd. (“Focus Interactive”) was incorporated in July 2014. As of December 31, 2017, the registered capital of Focus Interactive was $1.6 million and Heng Da Yi Tong held 100% of the equity interests in this entity. For Sogou’s Business - Sogou Information Sogou Information was incorporated in 2005. As of December 31, 2017, 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’s Business - Gamease Gamease was incorporated in 2007. As of December 31, 2017, the registered capital of Gamease was $1.3 million and High Century held a 100% interest in this entity. - Shanghai ICE Shanghai ICE Information Technology Co., Ltd. (“Shanghai ICE”) was acquired by Changyou in 2010. As of December 31, 2017, the registered capital of Shanghai ICE was $1.2 million and Gamease held a 100% interest in this entity. - Guanyou Gamespace Beijing Guanyou Gamespace Digital Technology Co., Ltd. (“Guanyou Gamespace”) was incorporated in 2010. As of December 31, 2017, the registered capital of Guanyou Gamespace was $1.5 million and Beijing Changyou Star Digital Technology Co., Ltd (“Changyou Star”) 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. As of December 31, 2017, the registered capital of Wuhan Baina Information was $3.0 million and Changyou Star and Yongzhi Yang, the former 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, 2016 2017 ASSETS: Cash and cash equivalents $ 94,859 $ 43,618 Accounts receivable, net 72,151 95,305 Prepaid and other current assets 86,722 26,755 Assets held for sale 12,551 0 Short-term investments 0 12,303 Intra-Group receivables due from the Company’s subsidiaries 197,438 398,135 Total current assets 463,721 576,116 Long-term investments, net 17,472 32,266 Fixed assets, net 4,372 2,414 Intangible assets, net 14,545 11,719 Goodwill 35,161 37,291 Other non-current 4,052 2,614 Total assets $ 539,323 $ 662,420 LIABILITIES: Accounts payable $ 15,824 $ 53,842 Accrued liabilities 96,695 76,883 Receipts in advance and deferred revenue 44,797 46,939 Liabilities held for sale 3,232 0 Other current liabilities 111,775 97,991 Intra-Group payables due to the Company’s subsidiaries 129,431 197,367 Total current liabilities 401,754 473,022 Long-term taxes payable 13,463 14,293 Long-term bank loans 0 1,530 Deferred tax liabilities 1,273 3,451 Intra-Group payables due to the Company’s subsidiaries 19,620 19,030 Total liabilities $ 436,110 $ 511,326 As of December 31, 2015 2016 2017 Net revenue $ 1,181,354 $ 894,697 $ 881,284 Net income /(loss) $ (78,722 ) $ 9,557 $ 34,910 Year ended December 31, 2015 2016 2017 Net cash provided by /(used in) operating activities $ 38,627 $ (17,804 ) $ (52,351 ) Net cash provided by/(used in) investing activities 55,108 (2,273 ) (14,020 ) Net cash provided by financing activities $ 2,855 $ 0 $ (131 ) Summary of Significant Agreements Currently in Effect Agreements Between Subsidiaries, Consolidated VIEs and Nominee Shareholders Loan and share pledge agreement Loan and share pledge agreement Loan and share pledge agreements free-and VIE-related VIE-related VIE-related 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 VIE-related VIE-related VIE-related Equity interest purchase right agreements Powers of attorney Business operation agreements Share pledge agreement VIE-related VIE-related VIE-related 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 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 |
Sohu.com Inc. Shareholders' Equ
Sohu.com Inc. Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
SOHU.COM INC. SHAREHOLDERS' EQUITY [Abstract] | |
Sohu.com Inc. Shareholders' Equity | 17. SOHU.COM INC. SHAREHOLDERS’ EQUITY Summary of Sohu.com Inc.’s outstanding shares (in thousands): Number of Outstanding Shares As of December 31, 2015 2016 2017 Common stock: Balance, beginning of year 38,507 38,653 38,742 Issuance of common stock 146 89 156 Balance, end of year 38,653 38,742 38,898 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, 2017, 2016 and 2015, 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 for the granting of share-based awards, including options and restricted share units, to their directors, management and other key employees. 1) Sohu.com Inc. Share-based Awards 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 stock issued pursuant to the vesting and settlement of restricted stock units and pursuant to the exercise of stock 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, 2017, 585,280 shares were available for grant under the Sohu 2010 Stock Incentive Plan. i) Summary of stock option activity In February 2015, May 2016, September 2017 and November 2017, the Company’s Board of Directors approved contractual grants to members of the Company’s management and key employees of options for the purchase of an aggregate of 1,068,000, 13,000, 32,000 and 6,000 shares of common stock, respectively, with nominal exercise prices of $0.001. These stock options vest and become exercisable in four equal installments over a period of four years, with each installment vesting upon the satisfaction of a service period requirement and certain subjective performance targets. These stock options are substantially similar to restricted stock units except for the nominal exercise price, which would be zero for restricted stock units. Under ASC 718-10-25 ASC 718-10-55 re-measured As of December 31, 2017, 431,500 of these stock options had been granted and had become vested on their respective vesting dates, as a mutual understanding of the subjective performance targets was reached between the Company and the recipients, the targets had been satisfied, and the service period requirements had been fulfilled. The cumulative share-based compensation expense for these granted stock options has been adjusted and fixed based on their aggregate fair values, at their respective grant dates, of $17.9 million. A summary of stock option activity under the Sohu 2010 Stock Incentive Plan as of and for the year ended December 31, 2017 is presented below: Options Number Weighted Weighted Aggregate Outstanding at January 1, 2017 193 $ $ Granted 178 0.001 Exercised (148 ) 0.001 Forfeited or expired 0 Outstanding at December 31, 2017 223 0.001 7.11 10,160 Vested at December 31, 2017 223 0.001 7.11 10,160 Exercisable at December 31, 2017 223 0.001 7.11 10,160 Note (1): The aggregated intrinsic value in the preceding table represents the difference between Sohu’s closing stock price of $45.58 on December 31, 2017 and the nominal exercise prices of the stock options. For the years ended December 31, 2017, 2016 and 2015, total share-based compensation expense recognized for these stock options was $2.4 million, $1.4 million and $25.6 million, respectively. The total fair values of these Sohu share options vested on their respective vesting dates for the years ended December 31, 2017, 2016 and 2015 were $7.1 million, $10.8 million and nil, respectively. For the years ended December 31, 2017, 2016 and 2015, total intrinsic value of share options exercised was $6.1 million, $2.5 million and nil, respectively. ii) Summary of restricted stock unit activity A summary of restricted stock unit activity under the Sohu 2010 Stock Incentive Plan as of and for the year ended December 31, 2017 is presented below: Restricted Share Units Number of Weighted-Average Grant-Date Unvested at January 1, 2017 11 $ 73.32 Granted 0 0 Vested (5 ) 75.06 Forfeited (5 ) 71.85 Unvested at December 31, 2017 1 72.92 Expected to vest after December 31, 2017 1 72.92 For the years ended December 31, 2017, 2016 and 2015, total share-based compensation expense recognized for restricted stock units was negative $1.7 million, $1.3 million and $2.2 million, respectively. As of December 31, 2017, there was nil of unrecognized compensation expense related to unvested restricted stock units. The total fair value on their respective vesting dates of restricted stock units vested during the years ended December 31, 2017, 2016 and 2015 was $0.3 million, $0.9 million and $1.6 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 VIEs 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, 2017, Sogou had contractually granted options for the purchase of 39,798,377 Sogou Class A Ordinary Shares under the 2010 Sogou Share Incentive Plan. Of the contractually-granted Sogou share options for the purchase of 39,798,377 Sogou Class A Ordinary Shares, options for the purchase of 32,548,377 Sogou Class A Ordinary Shares vest and become exercisable upon a service period requirement being met, as well as Sogou’s achievement of performance targets for the corresponding period. Subject to achievement of the applicable performance targets, of these Sogou share options for the purchase of 32,548,377 Sogou Class A Ordinary Shares, options for the purchase of 31,463,750 Sogou Class A Ordinary Shares vest and become exercisable in four equal installments and options for the purchase of 1,084,627 Sogou Class A Ordinary Shares vest and become exercisable in two to four installments over varying periods. For purposes of recognition of share-based compensation expense, each installment is considered to be granted as of the date that the performance target has been set. As of December 31, 2017, Sogou had granted options for the purchase of 27,666,405 Sogou Class A Ordinary Shares under the 2010 Sogou Share Incentive Plan. As of December 31, 2017, options for the purchase of 26,800,559 Sogou Class A Ordinary 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 25,163,373 Sogou Class A Ordinary Shares had been exercised. Of contractually-granted As of December 31, 2017, for purposes of recognition of share-based compensation expense, Sogou had granted Sogou share options for the purchase of 34,916,405 Sogou Class A Ordinary Shares, of which options for the purchase of 9,753,032 Sogou Class A Ordinary Shares were outstanding. A summary of Sogou share option activity under the Sogou 2010 Share Incentive Plan as of and for the year ended December 31, 2017 is presented below: Number Weighted Weighted Aggregate (in thousands) Outstanding as of January 1, 2017 9,451 $ 0.476 6.31 Granted 2,496 0.001 Exercised (2,168 ) 0.001 Forfeited/Expired (26 ) 0.001 Outstanding as of December 31, 2017 9,753 $ 0.462 5.56 $ 108,340 Vested as of December 31, 2017 and expected to vest thereafter 9,694 $ 0.464 5.54 $ 107,660 Exercisable as of December 31, 2017 1,637 $ 0.001 5.68 $ 18,941 Note (1): The aggregate intrinsic value in the preceding table represents the difference between Sogou’s closing price of $11.57 per Class A Ordinary Share on December 31, 2017 and the exercise prices of the share options. For the years ended December 31, 2017, 2016 and 2015, total share-based compensation expense recognized for Sogou share options under the Sogou 2010 Share Incentive Plan was $23.0 million, $7.6 million and $7.3 million, respectively. As of December 31, 2017, there was $8.7 million of unrecognized compensation expense related to the unvested Sogou share options granted under the Sogou 2010 Share Incentive Plan that is expected to be recognized over a weighted average period of 0.84 years. For the years ended December 31, 2017, 2016 and 2015, the total fair values of these Sogou share options vested on their respective vesting dates were $21.7 million, $9.7 million and $14.6 million, respectively. For the years ended December 31, 2017, 2016 and 2015, total intrinsic value of options exercised was $11.1 million, $15.2 million, and $13.8 million, respectively. The fair values of the ordinary shares of Sogou were assessed using the income approach /discounted cash flow method or based on the mid-point The fair value of the Sogou share options granted to Sogou management and key employees was estimated on the date of grant using the binomial valuation model with the following assumptions used: Assumptions Adopted 2015 2016 2017 Average risk-free interest rate 2.48%~2.77% 1.90%~2.77% 2.14%~3.00% Exercise multiple 2~3 2~3 2~3 Expected forfeiture rate (post-vesting) 1%~12% 0%~12% 0%~12% Weighted average expected option life 8 7 7 Volatility rate 47%~51% 43%~50% 39%~47% Dividend yield 0% 0% 0% Weighted average fair value of share options 3.58 3.26 10.35 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 Sogou ordinary shares over the exercise price as of the time the Sogou share 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 three was applied for management and a multiple of two was applied for other key employees. Sogou estimated the forfeiture rate to be 0% or 1% for the Sogou share options granted to Sogou management and 12% for the Sogou share options granted to Sogou’s other key employees. As there was no trading market for Sogou’s ordinary shares prior to the completion of Sogou’s IPO, 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 Sogou share options. Sogou has no history or expectation of paying dividends on its ordinary shares. Accordingly, the dividend yield was estimated to be 0%. Sogou 2017 Share Incentive Plan In October 2017, Sogou adopted a share incentive plan (the “Sogou 2017 Share Incentive Plan”) which provides for the issuance of up to and aggregate of 28,000,000 Sogou Class A Ordinary Shares. Share incentive awards may be granted under the Sogou 2017 Share Incentive Plan to Sogou’s management and employees and of any of its present or future parents or subsidiaries. The maximum term of any share incentive award granted under the Sogou 2017 Share Incentive Plan is ten years from the grant date. As of December 31, 2017, no options were contractually granted under the 2017 Sogou Share Incentive Plan. Sohu Management Sogou Share Option Arrangement Under an arrangement (the “Sohu Management Sogou Share Option Arrangement”) that was approved by the boards of directors of Sohu and Sogou in March 2011, Sohu has the right to provide to members of Sohu’s Board of Directors, management and key employees of the Sohu Group the opportunity to purchase from Sohu up to 12,000,000 Class A 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 Class A Ordinary Shares previously held by Sohu and 3,200,000 are Sogou Class A 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, 2017, Sohu had contractually granted options for the purchase of 8,305,000 Sogou Class A Ordinary Shares under the Sohu Management Sogou Share Option Arrangement. Of the contractually-granted Sogou share options for the purchase of 8,305,000 Sogou Class A Ordinary Shares, options for the purchase of 8,290,000 Sogou Class A Ordinary 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. For purposes of recognition of share-based compensation expense, each installment is considered to be granted as of the date that the performance target has been set. As of December 31, 2017, Sohu had granted Sogou share options for the purchase of 8,290,000 Sogou Class A Ordinary Shares under the Sohu Management Sogou Share Option Arrangement. As of December 31, 2017, options for the purchase of 8,290,000 Sogou Class A Ordinary 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 8,290,000 Sogou Class A Ordinary Shares had been exercised. Of the contractually-granted As of December 31, 2017, for purposes of recognition of share-based compensation expense, Sohu had granted options for the purchase of 8,305,000 Sogou Class A Ordinary Shares, of which options for the purchase of 9,000 Sogou Class A Ordinary Shares were outstanding. A summary of Sogou share option activity under the Sohu Management Sogou Share Option Arrangement as of and for the year ended December 31, 2017 is presented below: Options Number Weighted Weighted Aggregate Outstanding as of January 1, 2017 70 $ 0.517 6.79 Granted 0 Exercised (61 ) 0.594 Forfeited or expired 0 Outstanding as of December 31, 2017 9 0.001 7.38 $ 104 Vested as of December 31, 2017 9 0.001 7.38 104 Exercisable as of December 31, 2017 9 0.001 7.38 104 Note (1): The aggregate intrinsic value in the preceding table represents the difference between Sogou’s closing price of $11.57 per Class A ordinary share on December 31, 2017 and the exercise prices of the share options. For the years ended December 31, 2017, 2016 and 2015, total share-based compensation expense recognized for Sogou share options under the Sohu Management Sogou Share Option Arrangement was nil, $0.4 million and $1.0 million, respectively. As of December 31, 2017, there was no unrecognized compensation expense related to unvested Sogou share options. For the years ended December 31, 2017, 2016 and 2015, the total fair values of the Sogou share options under the Sohu Management Sogou Share Option Arrangement vested on their respective vesting dates were nil, $0.5 million, and $2.6 million, respectively. For the years ended December 31, 2017, 2016 and 2015, total intrinsic value of options exercised was $0.2 million, $4.5million, and $1.8 million, respectively. The method used to determine the fair value of Sogou share options granted under the Sohu Management Sogou Share Option Arrangement was the same as the method used for the Sogou share options granted under the Sogou 2010 Incentive Plan as described above, except for the assumptions used in the binomial valuation model as presented below. There was no share-based compensation expense recognized under the Sohu Management Sogou Share Option Arrangement for the year ended December 31, 2017. Assumptions Adopted 2015 2016 Average risk-free interest rate 2.43%~2.67% 2.01%~2.15% Exercise multiple 2~3 2~3 Expected forfeiture rate (post-vesting) 0%~8% 0% Weighted average expected option life 6 6 Volatility rate 46%~50% 43%~47% Dividend yield 0% 0% Weighted average fair value of share options 5.54 3.02 Option Modification In the first and second quarter of 2013, a portion of the Sogou 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 issued upon exercise were transferred to trusts with the original option grantees as beneficiaries. The trusts will distribute the Sogou ordinary 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 Sogou share options, the modification was not considered substantive. Accordingly, no incremental fair value related to these Sogou ordinary shares resulted from the modification, and the remaining share-based compensation expense for these Sogou ordinary shares continued to be recognized over the original remaining vesting period. As of December 31, 2017, 10,327,500 Sogou Class A Ordinary Shares that were purchased upon the early exercise of options granted under the Sogou 2010 Share Incentive Plan remained unvested in accordance with the vesting requirements under the original option agreements. All Sogou Class A Ordinary Shares purchased upon such early exercise that have become vested have been included in the disclosures under the heading “Sogou 2010 Share Incentive Plan” and “Sohu Management Sogou Share Option Arrangement” above. Sogou Share Repurchase Transaction In January 2017, Sogou repurchased 720,000 of its Pre-IPO Pre-IPO Tencent Share-based Awards Granted to Employees Who Transferred to Sogou with the Soso Search and Search-related Business Certain persons who became Sogou employees when Tencent’s Soso search and 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. Following the transfer of the businesses, 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 and search-related businesses to Sogou, Sogou applied the guidance in ASC 505-50 For the years ended December 31, 2017, 2016 and 2015, share-based compensation expense of $0.7 million, $0.8 million and $2.0 million, respectively, related to these Tencent restricted share units was recognized in the Group’s consolidated statements of comprehensive income. As of December 31, 2017, there was $58,327 of unrecognized compensation expense related to these unvested Tencent restricted share units. This amount is expected to be recognized over a weighted average period of 0.51 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 Changyou ordinary shares, including Changyou ordinary shares issued pursuant to the exercise of share options and upon vesting and settlement of restricted share units. The 2,000,000 reserved Changyou ordinary shares became 20,000,000 Changyou ordinary shares in March 2009 when Changyou effected a ten-for-one Prior to the completion of Changyou’s IPO, Changyou had granted under the Changyou 2008 Share Incentive Plan 15,000,000 Changyou 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 SEC to be beneficially owned by Tao Wang. Through December 31, 2017, 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 Changyou ordinary shares, to certain members of its management other than Tao Wang, and certain other Changyou employees. i) Share-based Awards granted before Changyou’s IPO All of the restricted Changyou ordinary shares and restricted share units granted before Changyou’s IPO became vested by the end of 2013. Hence there has been no share-based compensation expense recognized with respect to such restricted Changyou ordinary shares and restricted share units since their respective vesting dates. ii) Share-based Awards granted after Changyou’s IPO Through December 31, 2017, 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 Changyou ordinary shares, to certain members of its management other than Tao Wang and to certain of its other employees. These Changyou restricted share units are subject to vesting over a four-year period commencing on their grant dates. Share-based compensation expense for such Changyou restricted share units is recognized on an accelerated basis over the requisite service period. The fair value of Changyou 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, 2017 is presented below: Restricted Share Units Number of Units (in thousands) Weighted-Average Grant-Date Unvested at January 1, 2017 10 $ 14.25 Granted 0 Vested (10 ) 14.25 Forfeited 0 Unvested at December 31, 2017 0 Expected to vest after December 31, 2017 0 For the years ended December 31, 2017, 2016 and 2015, total share-based compensation expense recognized for these Changyou restricted share units was $2,200, $0.1 million and negative $0.2 million, respectively. The negative amount in 2015 resulted from Changyou’s reversal of share-based compensation expense for Changyou restricted share units that were cancelled due to the termination of the holders’ employment prior to vesting. As of December 31, 2017, there was nil of unrecognized compensation expense related to these unvested Changyou restricted share units. The total fair value of these Changyou restricted share units vested during the years ended December 31, 2017, 2016 and 2015 was $0.2 million, $0.1 million and $1.1 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. The maximum term of any share right granted under the Changyou 2014 Share Incentive Plan is ten years from the grant date. The Changyou 2014 Share Incentive Plan will expire in June 2024. As of December 31, 2017, 2,988,000 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 ordinary shares to certain members of its management and certain other employees at an exercise price of $0.01. On July 28, 2016, Changyou’s Board of Directors approved the contractual grant of options for the purchase of an aggregate of 100,000 Class A ordinary shares to certain member of its management at an exercise price of $0.01. These Changyou share options vest 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. These Changyou share options are substantially similar to restricted share units except for the nominal exercise price, which would be zero for restricted share units. Under ASC 718-10-25 ASC 718-10-55 re-measured As of December 31, 2017, 1,999,000 of these Changyou share options had been granted and had become vested on their respective vesting dates, as a mutual understanding of the subjective performance targets had been reached between Changyou and the recipients, the targets had been satisfied, and the service period requirements had been fulfilled. The cumulative share-based compensation expense of $28.6 million for these granted share options was adjusted and fixed based on the aggregate amounts of the fair values of these granted share options at their respective grant dates. A summary of share option activity under the Changyou 2014 Share Incentive Plan as of and for the year ended December 31, 2017 is presented below: Options Number Weighted Weighted Aggregate Outstanding at January 1, 2017 852 $ 0.01 7.93 $ 9,032 Granted 770 0.01 Exercised (675 ) 0.01 Forfeited or expired 0 Outstanding at December 31, 2017 947 0.01 7.01 17,240 Vested at December 31, 2017 947 0.01 17,240 Exercisable at December 31, 2017 947 0.01 Note (1): The aggregate intrinsic value in the preceding table represents the difference between Changyou’s closing price of $36.43 per ADS, or $18.22 per Class A ordinary share, on December 31, 2017 and the nominal exercise prices of the share options. For the years ended December 31, 2017, 2016 and 2015, total share-based compensation expense recognized for these share options under the Changyou 2014 Share Incentive Plan was $17.4 million, $8.3 million and $15.2 million, respectively. The total fair values of these Changyou share options vested on their respective vesting dates for the years ended December 31, 2017, 2016 and 2015 were $14.8 million, $9.1 million and $4.7 million, respectively. The total intrinsic value of share options exercised for the years ended December 31, 2017, 2016 and 2015 was $10.3 million, $4.3 million and nil, respectively. 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, 2017, 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. For purposes of ASC 718-10-25 For the years ended December 31, 2017, 2016 and 2015, total share-based compensation expense recognized for vested Sohu Video options under the Video 2011 Share Incentive Plan was negative $0.3 million, negative $0.8 million and $0.3 million, respectively. The negative amount resulted from re-measured compensation expense based on the then-current The fair value of the Sohu Video 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 Average risk-free interest rate 2.81 % Exercise multiple 2.8 Expected forfeiture rate (post-vesting) 14 % Weighted average expected option life 4.0 Volatility rate 44.1 % Dividend yield 0 Fair value 0.64 |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2017 | |
BUSINESS COMBINATION [Abstract] | |
Business Combination | 18. BUSINESS COMBINATION MoboTap On July 16, 2014, Changyou, through a wholly-owned subsidiary, entered into an investment agreement with MoboTap and MoboTapÂ’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 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 MoboTapÂ’s financial performance conducted in connection with the acquisition, MoboTap was not considered material to the Sohu Group. Thus the Sohu GroupÂ’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 GroupÂ’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 ChangyouÂ’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, ChangyouÂ’s management concluded that the Dolphin Browser was unable to provide the expected synergies with ChangyouÂ’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. In 2016, ChangyouÂ’s Board of Directors approved the disposal of the 51% equity interest in MoboTap. As of December 31, 2016, Changyou was negotiating with a potential buyer on the terms of disposal. Accordingly, the assets and liabilities attributable to MoboTap are classified as assets and liabilities held for sale and measured at the lower of their carrying amounts and their fair values, less selling costs, in the consolidated balance sheet as of December 31, 2016. Details see Note 10 - Fair Value Measurements. In the first quarter of 2017, ChangyouÂ’s management determined that the disposal was unlikely to be completed within one year, due to the suspension of negotiations with a potential buyer of MoboTap. As a result, the assets held for sale and liabilities held for sale related to MoboTap were reclassified and recorded as assets and liabilities held for use and measured at the lower of the carrying value before MoboTap was classified as held for sale, adjusted for any depreciation and amortization expense that would have been recognized had the assets and liabilities been continuously classified as held for use, or the fair value as of the reclassification date in the Sohu GroupÂ’s consolidated balance sheets commencing on the reclassification date. In the first quarter of 2017, Changyou recorded a $1.4 million expense in the consolidated statements of comprehensive income for catch-up In the third quarter of 2017, due to reinforced restrictions the Chinese regulatory authorities imposed on card and board games, some of ChangyouÂ’s key distribution partners informed Changyou that they had decided to stop the distribution and promotion of card and board games, which had an adverse impact on MoboTapÂ’s current performance, and also increased the uncertainty for its future operations and cash flow. As a result, Changyou determined that it was unlikely that MoboTap would gain users and grow its online card and board games revenues in China. Management performed an impairment test in the third quarter of 2017 using the discounted cash flow method and impairment charges of $86.9 million were recognized to reflect the fair value of the MoboTap business, of which an $83.5 million impairment loss was recognized for goodwill and a $3.4 million impairment loss was recognized for intangible assets. |
Noncontrolling Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2017 | |
NONCONTROLLING INTEREST [Abstract] | |
Noncontrolling Interest | 19. NONCONTROLLING INTEREST Currently, the noncontrolling interests in the Sohu GroupÂ’s consolidated financial statements primarily consist of noncontrolling interests for Sogou and Changyou. Noncontrolling Interest in the Consolidated Balance Sheets As of December 31, 2016 and 2017, noncontrolling interest in the consolidated balance sheets was $564.2 million and $1.07 billion, respectively. As of December 31, 2016 2017 Sogou $ 165,584 $ 623,785 Changyou 398,631 442,818 Total $ 564,215 $ 1,066,603 Noncontrolling Interest of Sogou As of December 31, 2017 and 2016, noncontrolling interest of Sogou of $623.8 million and $165.6 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., and reflecting the reclassification of SogouÂ’s share-based compensation expense from shareholdersÂ’ additional paid-in Pre-IPO Pre-IPO Noncontrolling Interest of Changyou As of December 31, 2017 and 2016, noncontrolling interest of Changyou of $442.8 million and $398.6 million, respectively, was recognized in the Sohu GroupÂ’s consolidated balance sheets, representing a 32% and 31% economic interest for 2017 and 2016, 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 Noncontrolling Interest in the Consolidated Statements of Comprehensive Income /(Loss) For the years ended December 31, 2017, 2016 and 2015, respectively, the Sohu Group had net income of $84.5 million, net income of $109.0 million and net income of $146.5 million, respectively, attributable to the noncontrolling interest in the consolidated statements of comprehensive income /(loss). Year Ended December 31, 2015 2016 2017 Sogou $ 101,656 $ 61,403 $ 77,025 Changyou 44,886 47,645 7,603 Others 0 0 (105 ) Total $ 146,542 $ 109,048 $ 84,523 Noncontrolling Interest of Sogou For the years ended December 31, 2017, 2016 and 2015, respectively, a $77.0 million net income, a $61.4 million net income and a $101.7 million net income, respectively, attributable to the noncontrolling interest of Sogou was recognized in the Sohu GroupÂ’s consolidated statements of comprehensive income /(loss), representing SogouÂ’s net income attributable to shareholders other than Sohu.com Inc. Noncontrolling Interest of Changyou For the years ended December 31, 2017, 2016 and 2015, respectively, a $7.6 million net income, a $47.6 million net income and a $44.9 million net income, respectively, attributable to the noncontrolling interest of Changyou was recognized in the Sohu GroupÂ’s consolidated statements of comprehensive income /(loss), representing a 32%, 31% and 31%, 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, 2017 | |
NET INCOME /(LOSS) PER SHARE [Abstract] | |
Net Income /(Loss) per Share | 20. 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, 2017, 263,000 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: Sogou’s net income/(loss) attributable to Sohu.com Inc. Before Sogou’s IPO Before Sogou’s IPO, Sogou’s net income /(loss) attributable to Sohu.com Inc. was determined using the percentage that the weighted average number of Sogou shares held by Sohu.com Inc. represented of the weighted average number of Sogou Pre-IPO Preferred Shares and Sogou Pre-IPO if-converted Before Sogou’s IPO, 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. After Sogou’s IPO After Sogou’s IPO, 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 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 Sogou, 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, 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 Sogou share options with the performance targets achieved as well as vested but unexercised Sogou 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. After Sogou’s IPO, all of these Sogou share options had an dilutive effect, and therefore were included in the calculation of Sohu.com Inc.’s diluted net income /(loss) per share. Changyou’s net income/(loss) attributable to Sohu.com Inc. 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 share options, and vested restricted share units and share options 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 and share options 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, 2017, 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. In September 2015, Sogou purchased from Photon 6.4 million Pre-IPO Pre-IPO Pre-IPO 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, 2015 2016 2017 Numerator: Net loss attributable to Sohu.com Inc., basic $ (49,598 ) $ (224,021 ) $ (554,526 ) Effect of dilutive securities: Incremental dilution from Sogou 0 0 (1,233 ) Incremental dilution from Changyou (1,231 ) (1,639 ) (31 ) Net loss attributable to Sohu.com Inc., diluted $ (50,829 ) $ (225,660 ) $ (555,790 ) Denominator: Weighted average basic shares of common shares outstanding 38,598 38,706 38,858 Effect of dilutive securities: Share options and restricted share units 0 0 0 Weighted average diluted common shares outstanding $ 38,598 $ 38,706 $ 38,858 Basic net loss per share attributable to Sohu.com Inc. $ (1.28 ) $ (5.79 ) $ (14.27 ) Diluted net loss per share attributable to Sohu.com Inc. $ (1.32 ) $ (5.83 ) $ (14.30 ) |
China Contribution Plan
China Contribution Plan | 12 Months Ended |
Dec. 31, 2017 | |
CHINA CONTRIBUTION PLAN [Abstract] | |
China Contribution Plan | 21. 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, 2017, 2016 and 2015, the GroupÂ’s China based subsidiaries and consolidated VIEs contributed a total of $139.2 million, $131.6 million and $132.6 million, respectively, to these funds. |
Profit Appropriation
Profit Appropriation | 12 Months Ended |
Dec. 31, 2017 | |
PROFIT APPROPRIATION [Abstract] | |
Profit Appropriation | 22. PROFIT APPROPRIATION The Sohu Group’s China-based subsidiaries and VIEs are required to make appropriations to certain non-distributable 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 “after-tax-profit non-distributable after-tax-profit 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 non-distributable after-tax-profit 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, 2017, 2016 and 2015, the total amount of profits contributed to these funds by the Group was $12.0 million, $4.3 million and $7.7 million, respectively. As of December 31, 2017 and 2016, the total amount of profits contributed to these funds by the Group was $63.0 million and $51.0 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 |
Concentration Risks
Concentration Risks | 12 Months Ended |
Dec. 31, 2017 | |
CONCENTRATION RISKS [Abstract] | |
Concentration Risks | 23. CONCENTRATION RISKS Because its operations are substantially conducted in the PRC, the Sohu Group is subject to PRC-related Operation Risk For the years ended December 31, 2017, 2016 and 2015, there were no revenues from customers that individually represent greater than 10% of the total online adveretising revenues. For the year ended December 31, 2017, revenues from TLBB were $197.7 million, accounting for approximately 44% of ChangyouÂ’s online game revenues, approximately 34% of ChangyouÂ’s total revenues and approximately 11% of the Sohu GroupÂ’s total revenues. For the year ended December 31, 2017, revenues from Legacy TLBB were $139.5 million, accounting for approximately 31% of ChangyouÂ’s online game revenues, approximately 24% of ChangyouÂ’s total revenues, and approximately 8% of the Sohu GroupÂ’s total revenues. Financial instruments that potentially subject the Sohu Group to concentration risks consist primarily of cash and cash equivalents and short-term investments. Cash and cash equivalents in Sohu Group are mainly denominated in RMB and in U.S. dollars. 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, 2017, approximately 58% of the Sohu GroupÂ’s cash and cash equivalents and short-term investments were held in 19 financial institutions in Mainland China. The remaining cash and cash equivalents and short-term investments were held primarily in financial institutions in Hong Kong and Macao. As of December 31, 2016, approximately 48% of the Sohu GroupÂ’s cash and cash equivalents and short-term investments were held in 14 financial institutions in Mainland China. The remaining cash and cash equivalents and short-term investments were held primarily in financial institutions in Macao and Hong Kong. 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, 2017 and 2016, the Sohu Group held its cash and bank deposits in different financial institutions and held no more than approximately 30% and 32%, 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, 2017 | |
RESTRICTED NET ASSETS [Abstract] | |
Restricted Net Assets | 24. RESTRICTED NET ASSETS Relevant PRC law and regulations permit payment of dividends by PRC-based PRC-based after-tax PRC-based PRC-based PRC-based |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2017 | |
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, 2016 2017 ASSETS Current assets: Cash and cash equivalents $ 8,990 $ 2,845 Prepaid and other current assets 6,218 2,285 Due from subsidiaries and VIEs 3,806 3,806 Total current assets 19,014 8,936 Interests in subsidiaries and VIEs 989,875 971,163 Total assets $ 1,008,889 $ 980,099 LIABILITIES AND SHAREHOLDERSÂ’ EQUITY Current liabilities 4,501 5,482 Long-term liabilities 10,808 223,983 Total liabilities 15,309 229,465 ShareholdersÂ’ equity: Common stock: $0.001 par value per share (75,400 shares authorized; 38,742 shares and 38,898 shares, respectively, issued and outstanding as of December 31, 2016 and 2017) 45 45 Additional paid-in 821,867 1,098,455 Treasury stock (5,890 shares as of both December 31, 2016 and 2017) (143,858 ) (143,858 ) Accumulated other comprehensive income 3,220 38,212 Retained earnings 312,306 (242,220 ) Total shareholdersÂ’ equity 993,580 750,634 Total liabilities and shareholdersÂ’ equity $ 1,008,889 $ 980,099 SOHU.COM INC. CONDENSED STATEMENTS OF COMPREHENSIVE LOSS (In thousands) Year Ended December 31, 2015 2016 2017 Revenues $ 0 $ 0 $ 0 Cost of revenues 0 0 0 Gross profit 0 0 0 Operating expenses: General and administrative 22,091 8,845 8,824 Operating loss (22,091 ) (8,845 ) (8,824 ) Share of loss of subsidiaries and VIEs (4,430 ) (217,408 ) (331,106 ) Other income /(expense) (12 ) (54 ) 71 Interest income 95 107 152 Loss before income tax expense /(benefit) (26,438 ) (226,200 ) (339,707 ) Income tax expense /(benefit) 11,249 (2,179 ) 214,819 Net loss (37,687 ) (224,021 ) (554,526 ) Other comprehensive income /(loss) (59,251 ) (46,931 ) 34,992 Comprehensive loss $ (96,938 ) $ (270,952 ) $ (519,534 ) SOHU.COM INC. CONDENSED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2015 2016 2017 Cash flows from operating activities: Net loss $ (37,687 ) $ (224,021 ) $ (554,526 ) Adjustments to reconcile net loss to net cash used in operating activities: Investment loss from subsidiaries and VIEs 4,430 217,408 331,106 Share-based compensation expense /(benefit) 15,393 1,309 (814 ) Changes in current assets and liabilities: Prepaid and other current assets (71 ) 842 3,933 Taxes payable 811 (630 ) 0 Accrued liabilities 7,905 (2,014 ) 214,156 Net cash used in operating activities (9,219 ) (7,106 ) (6,145 ) Cash flows from financing activities: Issuance of common stock 2,126 0 0 Net cash provided by financing activities 2,126 0 0 Net decrease in cash and cash equivalents (7,093 ) (7,106 ) (6,145 ) Cash and cash equivalents at beginning of year 23,189 16,096 8,990 Cash and cash equivalents at end of year $ 16,096 $ 8,990 $ 2,845 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Polices) | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Accounting Standards | Accounting Standards The consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”) to reflect the financial position and results of operations of the Sohu Group. |
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 of Consolidation and Recognition of Noncontrolling Interest | Basis of Consolidation and Recognition of Noncontrolling Interest The Sohu Group’s consolidated financial statements include the accounts of Sohu.com Inc. and its 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 subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholders. Currently, the noncontrolling interests in the Sohu Group’s consolidated financial statements primarily consist of noncontrolling interests for Sogou and Changyou. Noncontrolling Interest for Sogou Sogou completed its IPO on the NYSE in November 2017. Prior to the completion of Sogou’s IPO, Sohu.com Inc. controlled the election of a majority of the Board of Directors of Sogou pursuant to a shareholders’ agreement that expired upon completion of the IPO. Following the completion of Sogou’s IPO, pursuant to the Voting Agreement, Sohu.com Inc. still has the right to appoint a majority of Sogou’s Board of Directors. As Sogou’s controlling shareholder, the Sohu Group consolidates Sogou in its consolidated financial statements, and recognizes noncontrolling interest reflecting economic interests in Sogou held by shareholders other than it (the “Sogou noncontrolling shareholders”). Sogou’s net income/(loss) attributable to the Sogou noncontrolling shareholders is recorded as noncontrolling interest in its consolidated statements of comprehensive income. Noncontrolling Interest Recognition before Sogou’s IPO Sogou’s cumulative results of operations attributable to the Sogou noncontrolling shareholders, based on the following principles of allocation of Sogou’s profit and loss, along with changes in shareholders’ equity/(deficit) and adjustment for share-based compensation expense in relation to those share-based awards that were unvested and vested but not yet settled and the Sogou noncontrolling shareholders’ investments in Sogou Series A Preferred Shares outstanding before Sogou’s IPO (“Sogou Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Principles of Allocation of Sogou’s Profit and Loss - By virtue of the terms of the Sogou Pre-IPO Pre-IPO Pre-IPO (i) net losses were allocated to holders of the Sogou Pre-IPO Pre-IPO (ii) additional net losses were allocated to holders of the Sogou Pre-IPO (iii) additional net losses were allocated to the holder of the Sogou Pre-IPO (iv) further net losses were allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou. Net income from Sogou was allocated in the following order before Sogou’s IPO: (i) net income was allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou until their basis in Sogou increased to zero; (ii) additional net income was allocated to the holder of the Sogou Pre-IPO (iii) additional net income was allocated to holders of the Sogou Pre-IPO (iv) further net income was allocated to holders of the Sogou Pre-IPO Pre-IPO (v) further net income was allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou. Noncontrolling Interest Recognition after Sogou’s IPO Sogou’s cumulative results of operations attributable to the Sogou noncontrolling shareholders, based on their share of the economic interest in Sogou, along with changes in shareholders’ equity and adjustment for share-based compensation expense in relation to share-based awards that are unvested and vested but not yet settled and adjustment for changes in its ownership in Sogou, are recorded as noncontrolling interest in its consolidated balance sheets. Noncontrolling Interest for Changyou Changyou is a public company listed on the NASDAQ Global Select Market. As of December 31, 2017, Sohu.com Inc. held approximately 68% of the combined total of Changyou’s outstanding ordinary shares, and controlled approximately 95% of the total voting power in Changyou. As Changyou’s controlling shareholder, Sohu.com Inc. consolidates Changyou in its consolidated financial statements, and recognizes noncontrolling interest reflecting 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 | 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. Revenues or expenses from barter transactions are recognized at fair value during the period in which the advertisements are provided only if the fair value of the advertising services surrendered in the transaction is determinable based on our historical practice of receiving cash and cash equivalents, marketable securities, or other consideration that is readily convertible to a known amount of cash for similar advertising from buyers unrelated to the counterparty in the barter transaction. Online Advertising Revenues Online advertising revenues include revenues from brand advertising services as well as search and search-related advertising 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, in-feed 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 Cost Per click (“CPC”) model, and the E-commerce (i) Fixed Price model Under the Fixed Price model, a contract is signed to establish a fixed price for the advertising services to be provided. The Group recognizes revenue based on the contract price and the period of display. (ii) 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. The Group recognizes revenue based on the fees it charges the advertisers, which are based on the unit prices and the number of qualifying displays. (iii) 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 (iv) E-commerce Under the e-commerce 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. The Sohu Group treats advertising contracts with multiple deliverable elements as separate units of accounting for revenue recognition purposes and recognizes revenue on a periodic basis during the contract period when each deliverable service is provided. Since the contract price is for all deliverables under one advertising contract, the Sohu Group allocates the contract price among all the deliverables at the inception of the arrangement on the basis of their relative selling prices according to the selling price hierarchy established by ASU No. 2009-13 Search and Search-related Advertising Revenues Search and search-related services consist primarily of search and search-related advertising services offered by Sogou. Pay-for-click Pay-for-click pay-for-click auction-based per-click pay-for-click per-click Other Online Advertising Services Other online advertising services mainly consist of displaying advertisers’ promotional links on Sogou’s Internet properties. Revenue for time-based advertising is normally recognized on a straight-line basis over the contract period, provided Sogou’s obligations under the contract and all revenue recognition criteria have been met. Revenue for performance-based advertising services is recognized when our obligations under the contract have been met. Sogou’s advertising services expand distribution of advertisers’ promotional links and advertisements by leveraging traffic on third parties’ Internet properties, including Web content, software, and mobile applications. Sogou is the primary obligor to the advertisers. Payments made to operators of third-party Internet properties are included in traffic acquisition costs, which are included in cost of search and search-related advertising revenues. Online Game Revenues Changyou’s online game revenues are generated primarily from its self-operated and licensed-out in-game 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 VAT and discounts to game card distributors where applicable. Changyou obtains revenues from the sale of in-game 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 Mobile Games For self-operated mobile games, Changyou sells game points to its game players via third-party mobile APP stores. The mobile APP stores in turn pay Changyou proceeds after deducting their share of pre-agreed 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 Web Games Changyou continued to operate a small portfolio of self-operated Web games after its sale of the 7Road business in 2015. 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 and mobile games developed in house (such as Changyou’s mobile game Legacy TLBB) 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 pre-agreed Other Revenues Sohu Sohu also engages in the other business, which consists primarily of paid subscription services, interactive broadcasting services, sub-licensing Sogou Other revenues attributable to Sogou are revenues from IVAS, primarily with respect to the operation of Web games and mobile games developed by third parties and the provision of online reading services, and revenues from other products and services, including smart hardware products. Changyou Other revenues attributable to Changyou are primarily from its cinema advertising business and IVAS. In its cinema advertising business, Changyou provides clients advertising placements in slots that are shown in theaters before the screening of movies. The rights to place advertisements in such advertising slots are granted under contracts Changyou signs with different theaters. 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. Changyou provides IVAS primarily through software applications for PCs and mobile devices offered by MoboTap on the Dolphin Browser and by RaidCall. Revenues from IVAS are recognized during the period the services are rendered or items are consumed under the gross method, as Changyou is the principal obligor for provision of the services. |
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 revenues from 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, and salary and benefits expenses. Cost of Search and Search-related Advertising Revenues Cost of search and search-related advertising revenues mainly consists of traffic acquisition costs, bandwidth leasing costs, depreciation expenses, as well as salary and benefits expenses. Traffic acquisition costs consist primarily of payments to third parties that direct search queries of the users to Internet properties of Sogou or distribute Sogou advertisersÂ’ promotional links through such third partiesÂ’ Internet properties. The traffic acquisitions costs for such arrangements consist primarily of fees that Sogou pays to the third parties based on an agreed-upon revenue-sharing agreed-upon Cost of Online Game Revenues Cost of online game revenues mainly consists of revenue-sharing payments, salary and benefits expenses, bandwidth leasing costs, content and license costs, depreciation and amortization expenses, and other direct costs. Cost of Other Revenues Cost of other revenues mainly consists of payments to theaters for pre-film |
Product Development Expenses | Product Development Expenses Product development expenses mainly consist of salary and benefits expenses, technical service fees, share-based compensation expense, content and license costs, depreciation and amortization expenses, and facilities expenses. These expenses are incurred for the enhancement and maintenance of the Sohu GroupÂ’s Internet platforms as well as for its products and services, including the development costs of online games prior to the establishment of technological feasibility and cost of upgrades and technical support 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 expenses, travelling and entertainment expenses, and facilities 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 fees, bad debts, travelling and entertainment expenses, facilities expenses, and depreciation and amortization 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 for the granting of share-based awards, including stock options, share options 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 Sohu (excluding Sohu Video), Sogou, and Changyou Share-based Awards Sohu (excluding Sohu Video) Share-based Awards In determining the fair value of stock 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 Sohu common stock contractually granted under the Sohu 2010 Stock Incentive Plan 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. Under ASC 718-10-25 ASC 718-10-55 re-measured Sogou Share-based Awards In determining the fair value of share options granted by Sogou as share-based awards, a binomial valuation model was applied. The determination of the fair value is affected by the fair value of the ordinary shares as well as assumptions regarding a number of complex and subjective variables, including risk-free interest rates, exercise multiples, expected forfeiture rates, expected share price volatility rates, and expected dividends. The fair values of the ordinary shares were assessed using the income approach/discounted cash flow method or based on the mid-point 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 shortly before Changyou’s IPO, the fair value of the underlying shares was determined based on Changyou’s offering price for its IPO. In determining the fair value of restricted share units granted after Changyou’s IPO, the public market price of the underlying shares on the grant dates was applied. Options for the purchase of Changyou Class A ordinary shares contractually granted under the Changyou 2014 Share Incentive Plan 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. Under ASC 718-10-25 ASC 718-10-55 re-measured Compensation Expense Recognition For options 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 over the estimated period during which the service period requirement and performance target will be met, which is usually within one year or, after the performance target of Sogou’s completion of an IPO was met upon the completion of Sogou’s IPO on November 13, 2017, on an accelerated basis over the requisite service period. For Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search and 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 For Sogou Pre-IPO Pre-IPO 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 Sohu Video shares on a fully-diluted basis) to management and key employees of the video division and to Sohu management. As of December 31, 2017, 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 re-measured, re-measure, |
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 are related 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 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 PRC Value Added Tax On May 1, 2016, the transition from the imposition of PRC business tax (“Business Tax”) to the imposition of VAT was expanded to all industries in China, and all of the Sohu Group’s revenues have been subject to VAT since that date. 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 the available input VAT amount (at the rate applicable to the supplier). 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 21% for taxable years beginning after December 31, 2017 and U.S. corporate income tax on its taxable income of up to 35% for prior tax years. Recent U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Reform”), was signed into law on December 22, 2017. The U.S. Tax Reform significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time one-time lump-sum To the extent that portions of its U.S. taxable income, such as Subpart F income or global intangible low-taxed 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 two-step |
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: SogouÂ’s net income /(loss) attributable to Sohu.com Inc. Before SogouÂ’s IPO Before SogouÂ’s IPO, SogouÂ’s net income /(loss) attributable to Sohu.com Inc. was determined using the percentage that the weighted average number of Sogou shares held by Sohu.com Inc. represented of the weighted average number of the Sogou Pre-IPO Pre-IPO if-converted After SogouÂ’s IPO After SogouÂ’s IPO, 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 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 Sogou, 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, the percentage of 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 Sogou share options with the performance targets achieved as well as vested but unexercised Sogou 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. ChangyouÂ’s net income /(loss) attributable to Sohu.com Inc. 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 share options, and vested restricted share units and share options 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 and share options 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 mainly include cash equivalents, restricted cash, short-term investments, accounts receivable, assets held for sale, prepaid and other current assets, long-term investments (including available-for-sale |
Cash Equivalents | Cash Equivalents The Sohu GroupÂ’s cash equivalents mainly consist of time deposits with original maturities of three months or less, and highly liquid investments that are readily convertible to known amounts of cash. |
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. |
Available-for-Sale Securities | Available-for-Sale Investments in debt securities and equity securities that have readily determinable fair values not classified as trading securities or as held-to-maturity available-for-sale Available-for-sale available-for-sale |
Foreign exchange forward contracts | Foreign exchange forward contracts Foreign exchange forward contracts are initially recognized on the date a foreign exchange forward contract is entered into and are subsequently measured at fair value. Changyou entered into such foreign exchange forward contracts in compliance with its risk management policy for the purpose of eliminating the negative impact on earnings and equity resulting from fluctuations in the exchange rate between the U.S. dollar and the RMB. The instruments are marked-to-market period-end |
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 include fixed assets and intangible assets. Fixed Assets Fixed assets mainly comprise office buildings, leasehold improvements, building improvements, vehicles, office furniture and computer equipment, and hardware. 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 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 domain names and trademarks, developed technologies, computer software, purchased video content, cinema advertising slot rights, and operating rights for licensed games. 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 6 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 Impairment of Long-lived Assets In accordance with ASC 360-10-35 |
Video Content | 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, production costs incurred in excess of the amount of revenue contracted for 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 Video Content Purchased video content is stated at the lower of cost less accumulated amortization, or net realizable value (“NRV”). In accordance with ASC 920-350-35 |
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 ASC 350-20-35 two-step 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 Group estimates fair value using the income approach or the market approach. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates, control premium, comparable companiesÂ’ multipliers, 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 and an unrealized gain/(loss) on available-for-sale |
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 re-measurement 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 of the 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 balance sheets. |
Impact of Recently Issued Accounting Pronouncements | Impact of Recently Issued Accounting Pronouncements Revenue from Contracts with Customers. In May 2014, the FASB issued ASU No. 2014-09, No. 2015-14 No. 2014-09 2014-09 2014-09’s Recognition and Measurement of Financial Assets and Financial Liabilities. On January 5, 2016, the FASB issued ASU 2016-01 2016-01”), 2016-01 Leases. On February 25, 2016, the FASB issued ASU No. 2016-02 2016-02”), 2016-02 2016-02 right-of-use 2016-02 Financial Instruments-Credit Losses. In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments. In August 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-15, Statement of Cash Flows (Topic 230): Restricted Cash. In November 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-18, beginning-of-period end-of-period Business Combinations (Topic 805): Clarifying the Definition of a Business. In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-01, Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-04, |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 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 6 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, 2017 | |
SEGMENT INFORMATION [Abstract] | |
Segment operating information by segment | 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 (3) (94,392 ) (124,210 ) (165,130 ) 4,932 (378,800 ) Sales and marketing (1) (3) (203,332 ) (93,055 ) (91,334 ) 6,845 (380,876 ) General and administrative (3) (57,014 ) (14,422 ) (71,771 ) (656 ) (143,863 ) Goodwill impairment and impairment of intangible assets acquired as part of a business acquisitions 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) (4) 92,455 1,142 64,961 (84,032 ) 74,526 Interest income (5) 7,690 5,332 23,779 (6,158 ) 30,643 Interest expense (5) (5,007 ) 0 (8,335 ) 6,158 (7,184 ) 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 mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): In the third quarter of 2015, Sogou purchased from Sohu 24.0 million Sogou Pre-IPO Note (5): The elimination represents interest income/ (expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. Year Ended December 31, 2016 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 468,515 $ 660,408 $ 525,385 $ (3,877 ) $ 1,650,431 Segment cost of revenues (391,417 ) (302,565 ) (165,779 ) 327 (859,434 ) Segment gross profit 77,098 357,843 359,606 (3,550 ) 790,997 SBC (2) in cost of revenues (164 ) (171 ) (31 ) 0 (366 ) Gross profit 76,934 357,672 359,575 (3,550 ) 790,631 Operating expenses: Product development (3) (96,815 ) (132,749 ) (118,738 ) 4,342 (343,960 ) Sales and marketing (1) (3) (259,800 ) (121,303 ) (55,971 ) 4,688 (432,386 ) General and administrative (3) (47,804 ) (19,308 ) (45,642 ) 89 (112,665 ) SBC (2) in operating expenses (1,703 ) (8,680 ) (8,371 ) 0 (18,754 ) Total operating expenses (406,122 ) (282,040 ) (228,722 ) 9,119 (907,765 ) Operating profit /(loss) (329,188 ) 75,632 130,853 5,569 (117,134 ) Other income /(expense) (3) 5,360 (26,027 ) 15,523 (5,569 ) (10,713 ) Interest income (4) 8,879 5,198 21,490 (13,068 ) 22,499 Interest expense (4) (10,103 ) 0 (4,321 ) 13,068 (1,356 ) Exchange difference 2,349 5,346 5,108 0 12,803 Income /(loss) before income tax benefit /(expense) (322,703 ) 60,149 168,653 0 (93,901 ) Income tax benefit /(expense) 538 (27 ) (21,583 ) 0 (21,072 ) Net income /(loss) $ (322,165 ) $ 60,122 $ 147,070 $ 0 $ (114,973 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): The elimination represents interest income/ (expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. Year Ended December 31, 2017 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 374,696 $ 908,357 $ 580,261 $ (2,352 ) $ 1,860,962 Segment cost of revenues (414,526 ) (456,861 ) (163,713 ) 132 (1,034,968 ) Segment gross profit (39,830 ) 451,496 416,548 (2,220 ) 825,994 SBC (2) in cost of revenues 415 (540 ) (73 ) 0 (198 ) Gross profit (39,415 ) 450,956 416,475 (2,220 ) 825,796 Operating expenses: Product development (3) (113,590 ) (156,359 ) (124,869 ) 6,192 (388,626 ) Sales and marketing (1) (3) (199,304 ) (152,121 ) (59,705 ) 4,000 (407,130 ) General and administrative (3) (44,563 ) (25,407 ) (37,218 ) 130 (107,058 ) Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions 0 0 (86,882 ) 0 (86,882 ) SBC (2) in operating expenses (765 ) (27,193 ) (17,320 ) 0 (45,278 ) Total operating expenses (358,222 ) (361,080 ) (325,994 ) 10,322 (1,034,974 ) Operating profit /(loss) (397,637 ) 89,876 90,481 8,102 (209,178 ) Other income /(expense) (3) 4,694 692 9,374 (8,102 ) 6,658 Interest income (4) 7,344 9,126 32,319 (24,651 ) 24,138 Interest expense (4) (24,367 ) 0 (4,372 ) 24,651 (4,088 ) Exchange difference (2,107 ) (7,082 ) (5,196 ) 0 (14,385 ) Income /(loss) before income tax expense (412,073 ) 92,612 122,606 0 (196,855 ) Income tax expense (217,959 ) (14,422 ) (40,767 ) 0 (273,148 ) Net income /(loss) $ (630,032 ) $ 78,190 $ 81,839 $ 0 $ (470,003 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou, and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): The elimination represents interest income/ (expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. |
Segment assets information by segment | As of December 31, 2016 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 167,691 $ 286,078 $ 597,188 $ 0 $ 1,050,957 Accounts receivable, net 100,317 41,781 47,150 (81 ) 189,167 Fixed assets, net 196,839 117,022 189,770 0 503,631 Total assets (1) $ 1,241,844 $ 499,589 $ 1,708,037 $ (885,780 ) $ 2,563,690 Note (1): The elimination for segment assets mainly consists of elimination of intra-Group loans between the Sohu segment and the Changyou segment, and elimination of long-term investments in subsidiaries and consolidated VIEs. As of December 31, 2017 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 98,750 $ 694,207 $ 571,139 $ 0 $ 1,364,096 Accounts receivable, net 86,801 72,117 91,636 (86 ) 250,468 Fixed assets, net 200,561 139,209 189,947 0 529,717 Total assets (1) $ 1,124,759 $ 1,321,036 $ 1,922,023 $ (978,579 ) $ 3,389,239 Note (1): The elimination for segment assets mainly consists of elimination of intra-Group 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, 2017 | |
SHARE-BASED COMPENSATION EXPENSE [Abstract] | |
Share-based compensation expense recognized in costs and expenses | Year Ended December 31, Share-based compensation expense 2015 2016 2017 Cost of revenues $ 1,748 $ 366 $ 198 Product development expenses 19,344 9,184 23,547 Sales and marketing expenses 3,054 2,394 5,915 General and administrative expenses 29,297 7,176 15,817 $ 53,443 $ 19,120 $ 45,477 |
Share-based compensation expense recognized for share awards of Sohu (excluding Sohu Video), Sogou, Changyou and Sohu Video | Year Ended December 31, Share-based 2015 2016 2017 For Sohu (excluding Sohu Video) share-based awards $ 27,811 $ 2,761 $ 652 For Sogou share-based awards (2) 10,310 8,802 27,729 For Changyou share-based awards 15,024 8,402 17,394 For Sohu Video share-based awards (1) 298 (845 ) (298 ) $ 53,443 $ 19,120 $ 45,477 Note (1): The negative amount resulted from re-measured Note (2): Compensation expense for Sogou share-based awards also includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search and search-related businesses and compensation expense of $4.0 million, recognized in the first quarter of 2017 in connection with SogouÂ’s repurchase of Sogou Pre-IPO Pre-IPO |
Other Income _(Expense),net (Ta
Other Income /(Expense),net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER INCOME /(EXPENSE), NET [Abstract] | |
Other income /(expense) | Year Ended December 31, 2015 2016 2017 Investment income/(expense) (1) $ 60,264 $ (1,908 ) $ (2,051 ) Gain from the changes in fair value of financial instruments 9,374 13,133 6,665 Government grant 2,839 2,112 2,166 Donations (2) (1,192 ) (27,982 ) (218 ) Write-off of unpaid long-term accounts payable 0 0 2,031 Impairment loss on available-for-sale 0 0 (5,754 ) Others 3,241 3,932 3,819 $ 74,526 $ (10,713 ) $ 6,658 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. Note (2): In the second quarter of 2016, the Sohu Group recognized a one-time Note (3): In the third quarter of 2017, the Group recognized an impairment loss of $5.8 million that was related to Keyeast, an investment measured as available-for-sale |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
BALANCE SHEET COMPONENTS [Abstract] | |
Balance sheet components account receivables | As of December 31, 2015 2016 2017 Accounts receivable, net Accounts receivable $ 277,593 194,008 256,131 Allowance for doubtful accounts (3,976 ) (4,841 ) (5,663 ) $ 273,617 189,167 250,468 |
Balance sheet components movement of allowance for doubtful accounts | Balance at the Additional provision Write-offs Exchange difference Balance at the 2015 4,068 2,175 (2,064 ) (203 ) 3,976 2016 3,976 7,109 (5,992 ) (252 ) 4,841 2017 4,841 9,076 (8,634 ) 380 5,663 |
Balance sheet components other assests and liabilities | As of December 31, 2016 2017 Prepaid and other current assets Prepaid content and license $ 119,810 $ 35,442 Prepaid taxes 30,308 35,551 Matching loan due from a related party (See Note 8) 29,019 32,005 Loans to third parties 25,494 28,544 Due from Shenzhen 7Road 12,509 5,344 Prepaid cost of revenue 10,085 14,782 Prepaid rental deposit 9,817 9,314 Receivables from third party payment platforms 4,027 3,350 Employee advances 4,013 4,109 Interest receivable 1,595 2,515 Prepaid advertising and promotion fees 1,506 3,371 Prepaid office rent and facilities expenses 1,378 3,265 Others 10,572 15,083 $ 260,133 $ 192,675 Prepaid non-current Prepaid PRC income tax for the sale of assets associated with 17173.com by Sohu to Changyou $ 4,733 $ 4,020 Others 1 191 $ 4,734 $ 4,211 Other short-term liabilities Deposit received from membership card buyers $ 61,708 $ 29,889 Matching loan due to a related party (See Note 8) 28,678 31,192 Contract deposits from advertisers 24,385 29,078 Donation payable 17,299 7,652 Consideration payable for equity investment 5,280 6,427 Early exercise of Sogou share options for trust arrangements 4,504 4,503 Accrued liabilities to suppliers 3,817 6,725 Employee individual income tax withholding for options 2,382 0 Accrued business tax arising from the sale of assets associated with 17173.com by Sohu to Changyou 1,625 0 Government grant 0 765 Foreign exchange forward contracts 0 715 Others 9,637 19,354 $ 159,315 $ 136,300 Receipts in advance and deferred revenue Receipts in advance relating to: - brand advertising business $ 12,332 $ 12,858 - search and search-related business 59,593 66,223 - online game business 15,225 18,498 - others business 2,732 5,327 Total receipts in advance 89,882 102,906 Deferred revenue 29,069 24,852 $118,951 $127,758 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Financial instruments, measured at fair value | Fair value measurements at reporting date using Items As of Quoted Prices Significant Significant Cash equivalents $ 626,697 $ 0 $ 626,697 $ 0 Short-term investments 247,926 0 247,926 0 Available-for-sale 10,381 10,381 0 0 Foreign exchange forward contracts recognized in prepaid and other current assets 3,040 0 3,040 0 Fair value measurements at reporting date using Items As of Quoted Prices Significant Significant Cash equivalents $ 1,136,892 $ 0 $ 1,136,892 $ 0 Short-term investments 818,934 0 818,934 0 Available-for-sale 21,307 21,307 0 0 Foreign exchange forward contracts recognized in other short-term liabilities 715 $ 0 $ 715 $ 0 |
Assets measured at fair value on nonrecurring basis | Fair value measurements at reporting date using Items As of Quoted Prices in Significant Other Significant Purchased video content recorded in prepaid and other assets $ 75,389 $ 0 $ 0 $ 75,389 Intangible assets, net 32,131 0 0 32,131 Goodwill 68,290 0 0 68,290 Fair value measurements at reporting date using Items As of Quoted Prices in Significant Other Significant Purchased video content recorded in prepaid and other assets $ 10,192 $ 0 $ 0 $ 10,192 Intangible assets, net 23,060 0 0 23,060 Goodwill 71,565 0 0 71,565 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FIXED ASSETS [Abstract] | |
Fixed assets, net | As of December 31, 2016 2017 Fixed assets, net Office buildings $ 368,758 $ 391,490 Computer equipment and hardware 323,592 388,693 Leasehold and building improvements 46,164 45,849 Office furniture 9,789 9,879 Vehicles 3,480 4,029 Fixed assets, gross 751,783 839,940 Accumulated depreciation (248,152 ) (310,223 ) $ 503,631 $ 529,717 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
GOODWILL [Abstract] | |
Carrying value of goodwill by segment | Sohu Sogou Changyou Total 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 Transactions in 2016 Goodwill associated with MoboTap and transferred to assets held for sale 0 0 (83,470 ) (83,470 ) Foreign currency translation adjustment (969 ) (380 ) (1,110 ) (2,459 ) Balance as of December 31, 2016 $ 36,223 $ 5,565 $ 26,502 $ 68,290 Balance as of December 31, 2016 Goodwill 72,011 5,565 96,949 174,525 Accumulated impairment losses (35,788 ) 0 (70,447 ) (106,235 ) $ 36,223 $ 5,565 $ 26,502 $ 68,290 Transactions in 2017 Goodwill associated with MoboTap reclassified from assets held for sale to assets held for use 0 0 83,470 83,470 Goodwill impairment recognized for MoboTap 0 0 (83,470 ) (83,470 ) Goodwill associated with an acquisition 1,000 0 0 1,000 Foreign currency translation adjustment 930 343 1,002 2,275 Balance as of December 31, 2017 $ 38,153 $ 5,908 $ 27,504 $ 71,565 Balance as of December 31, 2017 Goodwill 73,941 5,908 181,421 261,270 Accumulated impairment losses (35,788 ) 0 (153,917 ) (189,705 ) $ 38,153 $ 5,908 $ 27,504 $ 71,565 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INTANGIBLE ASSETS, NET [Abstract] | |
Finite-lived intangible assets by major class | As of December 31, 2016 Items Gross Accumulated Impairment Net Purchased video content $ 181,100 $ (159,549 ) $ (12,759 ) $ 8,792 Operating rights for licensed games 30,497 (13,178 ) (9,208 ) 8,111 Domain names and trademarks 29,466 (9,872 ) (9,758 ) 9,836 Computer software 16,521 (13,015 ) 0 3,506 Developed technologies 8,818 (1,252 ) (7,369 ) 197 Cinema advertising slot rights 3,199 (2,625 ) 0 574 Others 11,568 (4,398 ) (6,055 ) 1,115 Total $ 281,169 $ (203,889 ) $ (45,149 ) $ 32,131 As of December 31, 2017 Items Gross Accumulated Impairment Net Purchased video content $ 152,135 $ (135,177 ) $ (11,275 ) $ 5,683 Operating rights for licensed games 34,296 (17,882 ) (10,924 ) 5,490 Domain names and trademarks 33,630 (11,144 ) (13,279 ) 9,207 Computer software 17,413 (15,401 ) 0 2,012 Developed technologies 19,300 (5,020 ) (14,089 ) 191 Cinema advertising slot rights 0 0 0 0 Others 25,051 (15,189 ) (9,385 ) 477 Total $ 281,825 $ (199,813 ) $ (58,952 ) $ 23,060 |
Expected amortization expense | For the year ending December 31, (in thousands) 2018 $ 8,924 2019 5,139 2020 1,295 2021 1,274 2022 1,070 Thereafter 5,358 Total expected amortization expense $ 23,060 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
TAXATION [Abstract] | |
Components of income before income taxes | Year ended December 31, 2015 2016 2017 Income /(loss) before income tax expense Income /(loss) from China operations $ 171,636 $ (88,440 ) $ (75,893 ) Income /(loss) from non-China 14,155 (5,461 ) (120,962 ) Total income /(loss) before income tax expense $ 185,791 $ (93,901 ) $ (196,855 ) Income tax expense applicable to China operations Current tax $ 55,532 $ 13,635 $ 57,413 Deferred tax 8,735 8,500 380 Subtotal income tax expense applicable to China operations 64,267 22,135 57,793 Non China income tax expense/(benefit) 11,291 (2,134 ) 214,737 Non China withholding tax expense 1,378 1,071 618 Total income tax expense $ 76,936 $ 21,072 $ 273,148 |
Combined effects of the income tax exemption and reduction available | Year Ended December 31, 2015 2016 2017 Tax holiday effect $ 19,626 $ 30,872 $ 17,736 Basic net income per share effect 0.51 0.80 0.46 |
Reconciliation between the U.S. federal statutory rate and the Group's effective tax rate | Year Ended December 31, 2015 2016 2017 U.S. federal statutory rate: 35 % 35 % 35 % Effect of tax holidays applicable to subsidiaries and consolidated VIEs (1) (11 %) 33 % 9 % Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs (13 %) (3 %) (11 %) Effect of withholding taxes 2 % (4 %) (2 %) Changes in valuation allowance for deferred tax assets 31 % (91 %) (57 %) Others (3 %) 8 % (2 %) 41 % (22 %) (28 %) Note (1): The reversal of income tax for preferential income tax rates that Changyou’s and Sogou’s subsidiaries and VIEs were entitled to as KNSEs or Software Enterprises for 2015, 2016 and 2017 was included in the “Effect of tax holidays applicable to subsidiaries and consolidated VIEs” in the above table. |
Deferred tax assets and liabilities | As of December 31, 2016 2017 Deferred tax assets: Net operating loss from operations $ 206,967 $ 245,534 Accrued bonus and commissions 22,069 25,164 Intangible assets transfer 746 538 Others 7,525 10,307 Total deferred tax assets 237,307 281,543 Less: Valuation allowance (216,176 ) (256,347 ) Net deferred tax assets $ 21,131 $ 25,196 Deferred tax liabilities Withholding tax for Dividend $ (26,002 ) $ (30,992 ) Deferred U.S. tax (9,175 ) (5,498 ) Intangible assets from business acquisitions (1,273 ) (1,247 ) Others (3,334 ) (5,655 ) Total deferred tax liabilities $ (39,784 ) $ (43,392 ) |
Movement of the valuation allowance | For the Year Ended 2015 2016 2017 Beginning balance $ 110,788 146,930 216,176 Provision for the year 71,991 89,603 66,090 Reversal for the year (30,549 ) (10,952 ) (39,004 ) Foreign currency translation adjustment (5,300 ) (9,405 ) 13,085 Ending balance $ 146,930 216,176 256,347 |
Uncertain tax positions | As of December 31, 2015 2016 2017 Beginning balance $ 24,515 $ 39,244 $ 32,682 Decreases related to prior year tax positions 0 (6,649 ) (1,544 ) Increases related to current year tax positions 14,729 87 0 Ending balance $ 39,244 $ 32,682 $ 31,138 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Commitments related to future payment arrangement | 2018 2019 2020 2021 2022 Thereafter Total Purchase of cinema advertisement slot rights 67,942 52,508 26,524 8,249 1,305 1,301 157,829 Purchase of bandwidth 67,827 1,398 1,196 327 0 0 70,748 Purchase of content and services – video 38,224 19,007 1,134 0 0 0 58,365 Operating lease obligations (1) 18,025 9,118 3,842 666 61 10 31,722 Expenditures for operating rights for licensed games with technological feasibility 19,844 1,039 0 0 0 0 20,883 Purchase of content and services – others 7,019 971 77 32 0 0 8,099 Fees for operating rights for licensed games in development 2,447 0 0 0 0 0 2,447 Others 4,721 377 87 0 0 0 5,185 Total Payments Required 226,049 84,418 32,860 9,274 1,366 1,311 355,278 Note (1): For the years ended December 31, 2017, 2016 and 2015, rental expense included in the operating lease was approximately $23.9 million, $23.9 million, and $27.9 million, respectively. |
VIEs (Tables)
VIEs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
VIES [Abstract] | |
Financial information of consolidated VIEs | As of December 31, 2016 2017 ASSETS: Cash and cash equivalents $ 94,859 $ 43,618 Accounts receivable, net 72,151 95,305 Prepaid and other current assets 86,722 26,755 Assets held for sale 12,551 0 Short-term investments 0 12,303 Intra-Group receivables due from the CompanyÂ’s subsidiaries 197,438 398,135 Total current assets 463,721 576,116 Long-term investments, net 17,472 32,266 Fixed assets, net 4,372 2,414 Intangible assets, net 14,545 11,719 Goodwill 35,161 37,291 Other non-current 4,052 2,614 Total assets $ 539,323 $ 662,420 LIABILITIES: Accounts payable $ 15,824 $ 53,842 Accrued liabilities 96,695 76,883 Receipts in advance and deferred revenue 44,797 46,939 Liabilities held for sale 3,232 0 Other current liabilities 111,775 97,991 Intra-Group payables due to the CompanyÂ’s subsidiaries 129,431 197,367 Total current liabilities 401,754 473,022 Long-term taxes payable 13,463 14,293 Long-term bank loans 0 1,530 Deferred tax liabilities 1,273 3,451 Intra-Group payables due to the CompanyÂ’s subsidiaries 19,620 19,030 Total liabilities $ 436,110 $ 511,326 As of December 31, 2015 2016 2017 Net revenue $ 1,181,354 $ 894,697 $ 881,284 Net income /(loss) $ (78,722 ) $ 9,557 $ 34,910 Year ended December 31, 2015 2016 2017 Net cash provided by /(used in) operating activities $ 38,627 $ (17,804 ) $ (52,351 ) Net cash provided by/(used in) investing activities 55,108 (2,273 ) (14,020 ) Net cash provided by financing activities $ 2,855 $ 0 $ (131 ) |
Sohu.com Inc. Shareholders' E46
Sohu.com Inc. Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Sohu.com Inc.'s outstanding shares | Number of Outstanding Shares As of December 31, 2015 2016 2017 Common stock: Balance, beginning of year 38,507 38,653 38,742 Issuance of common stock 146 89 156 Balance, end of year 38,653 38,742 38,898 |
Sohu 2010 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, 2017 193 $ $ Granted 178 0.001 Exercised (148 ) 0.001 Forfeited or expired 0 Outstanding at December 31, 2017 223 0.001 7.11 10,160 Vested at December 31, 2017 223 0.001 7.11 10,160 Exercisable at December 31, 2017 223 0.001 7.11 10,160 Note (1): The aggregated intrinsic value in the preceding table represents the difference between SohuÂ’s closing stock price of $45.58 on December 31, 2017 and the nominal exercise prices of the stock options. |
Restricted share unit activity | Restricted Share Units Number of Weighted-Average Grant-Date Unvested at January 1, 2017 11 $ 73.32 Granted 0 0 Vested (5 ) 75.06 Forfeited (5 ) 71.85 Unvested at December 31, 2017 1 72.92 Expected to vest after December 31, 2017 1 72.92 |
Sogou 2010 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share option activity | Number Weighted Weighted Aggregate (in thousands) Outstanding as of January 1, 2017 9,451 $ 0.476 6.31 Granted 2,496 0.001 Exercised (2,168 ) 0.001 Forfeited/Expired (26 ) 0.001 Outstanding as of December 31, 2017 9,753 $ 0.462 5.56 $ 108,340 Vested as of December 31, 2017 and expected to vest thereafter 9,694 $ 0.464 5.54 $ 107,660 Exercisable as of December 31, 2017 1,637 $ 0.001 5.68 $ 18,941 Note (1): The aggregate intrinsic value in the preceding table represents the difference between SogouÂ’s closing price of $11.57 per Class A Ordinary Share on December 31, 2017 and the exercise prices of the share options. |
Stock option assumptions | Assumptions Adopted 2015 2016 2017 Average risk-free interest rate 2.48%~2.77% 1.90%~2.77% 2.14%~3.00% Exercise multiple 2~3 2~3 2~3 Expected forfeiture rate (post-vesting) 1%~12% 0%~12% 0%~12% Weighted average expected option life 8 7 7 Volatility rate 47%~51% 43%~50% 39%~47% Dividend yield 0% 0% 0% Weighted average fair value of share options 3.58 3.26 10.35 |
Sohu Management Sogou Share Option Arrangement [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share option activity | Options Number Weighted Weighted Aggregate Outstanding as of January 1, 2017 70 $ 0.517 6.79 Granted 0 Exercised (61 ) 0.594 Forfeited or expired 0 Outstanding as of December 31, 2017 9 0.001 7.38 $ 104 Vested as of December 31, 2017 9 0.001 7.38 104 Exercisable as of December 31, 2017 9 0.001 7.38 104 Note (1): The aggregate intrinsic value in the preceding table represents the difference between SogouÂ’s closing price of $11.57 per Class A ordinary share on December 31, 2017 and the exercise prices of the share options. |
Stock option assumptions | Assumptions Adopted 2015 2016 Average risk-free interest rate 2.43%~2.67% 2.01%~2.15% Exercise multiple 2~3 2~3 Expected forfeiture rate (post-vesting) 0%~8% 0% Weighted average expected option life 6 6 Volatility rate 46%~50% 43%~47% Dividend yield 0% 0% Weighted average fair value of share options 5.54 3.02 |
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 Units (in thousands) Weighted-Average Grant-Date Unvested at January 1, 2017 10 $ 14.25 Granted 0 Vested (10 ) 14.25 Forfeited 0 Unvested at December 31, 2017 0 Expected to vest after December 31, 2017 0 |
Changyou 2014 Share 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, 2017 852 $ 0.01 7.93 $ 9,032 Granted 770 0.01 Exercised (675 ) 0.01 Forfeited or expired 0 Outstanding at December 31, 2017 947 0.01 7.01 17,240 Vested at December 31, 2017 947 0.01 17,240 Exercisable at December 31, 2017 947 0.01 Note (1): The aggregate intrinsic value in the preceding table represents the difference between ChangyouÂ’s closing price of $36.43 per ADS, or $18.22 per Class A ordinary share, on December 31, 2017 and the nominal exercise prices of the share options. |
Video 2011 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock option assumptions | Assumptions Adopted Average risk-free interest rate 2.81 % Exercise multiple 2.8 Expected forfeiture rate (post-vesting) 14 % Weighted average expected option life 4.0 Volatility rate 44.1 % Dividend yield 0 Fair value 0.64 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
NONCONTROLLING INTEREST [Abstract] | |
Noncontrolling interest in consolidated balance sheets | As of December 31, 2016 2017 Sogou $ 165,584 $ 623,785 Changyou 398,631 442,818 Total $ 564,215 $ 1,066,603 |
Noncontrolling interest in consolidated statements of comprehensive income /(loss) | Year Ended December 31, 2015 2016 2017 Sogou $ 101,656 $ 61,403 $ 77,025 Changyou 44,886 47,645 7,603 Others 0 0 (105 ) Total $ 146,542 $ 109,048 $ 84,523 |
Net Income _(Loss) per Share (T
Net Income /(Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
NET INCOME /(LOSS) PER SHARE [Abstract] | |
Calculation of basic and diluted net loss per share | Year Ended December 31, 2015 2016 2017 Numerator: Net loss attributable to Sohu.com Inc., basic $ (49,598 ) $ (224,021 ) $ (554,526 ) Effect of dilutive securities: Incremental dilution from Sogou 0 0 (1,233 ) Incremental dilution from Changyou (1,231 ) (1,639 ) (31 ) Net loss attributable to Sohu.com Inc., diluted $ (50,829 ) $ (225,660 ) $ (555,790 ) Denominator: Weighted average basic shares of common shares outstanding 38,598 38,706 38,858 Effect of dilutive securities: Share options and restricted share units 0 0 0 Weighted average diluted common shares outstanding $ 38,598 $ 38,706 $ 38,858 Basic net loss per share attributable to Sohu.com Inc. $ (1.28 ) $ (5.79 ) $ (14.27 ) Diluted net loss per share attributable to Sohu.com Inc. $ (1.32 ) $ (5.83 ) $ (14.30 ) |
Schedule I - Condensed Financ50
Schedule I - Condensed Financial Information of Registrant (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract] | |
Condensed balance sheets | As of December 31, 2016 2017 ASSETS Current assets: Cash and cash equivalents $ 8,990 $ 2,845 Prepaid and other current assets 6,218 2,285 Due from subsidiaries and VIEs 3,806 3,806 Total current assets 19,014 8,936 Interests in subsidiaries and VIEs 989,875 971,163 Total assets $ 1,008,889 $ 980,099 LIABILITIES AND SHAREHOLDERSÂ’ EQUITY Current liabilities 4,501 5,482 Long-term liabilities 10,808 223,983 Total liabilities 15,309 229,465 ShareholdersÂ’ equity: Common stock: $0.001 par value per share (75,400 shares authorized; 38,742 shares and 38,898 shares, respectively, issued and outstanding as of December 31, 2016 and 2017) 45 45 Additional paid-in 821,867 1,098,455 Treasury stock (5,890 shares as of both December 31, 2016 and 2017) (143,858 ) (143,858 ) Accumulated other comprehensive income 3,220 38,212 Retained earnings 312,306 (242,220 ) Total shareholdersÂ’ equity 993,580 750,634 Total liabilities and shareholdersÂ’ equity $ 1,008,889 $ 980,099 |
Condensed statements of comprehensive loss | Year Ended December 31, 2015 2016 2017 Revenues $ 0 $ 0 $ 0 Cost of revenues 0 0 0 Gross profit 0 0 0 Operating expenses: General and administrative 22,091 8,845 8,824 Operating loss (22,091 ) (8,845 ) (8,824 ) Share of loss of subsidiaries and VIEs (4,430 ) (217,408 ) (331,106 ) Other income /(expense) (12 ) (54 ) 71 Interest income 95 107 152 Loss before income tax expense /(benefit) (26,438 ) (226,200 ) (339,707 ) Income tax expense /(benefit) 11,249 (2,179 ) 214,819 Net loss (37,687 ) (224,021 ) (554,526 ) Other comprehensive income /(loss) (59,251 ) (46,931 ) 34,992 Comprehensive loss $ (96,938 ) $ (270,952 ) $ (519,534 ) |
Condensed statements of cash flows | Year Ended December 31, 2015 2016 2017 Cash flows from operating activities: Net loss $ (37,687 ) $ (224,021 ) $ (554,526 ) Adjustments to reconcile net loss to net cash used in operating activities: Investment loss from subsidiaries and VIEs 4,430 217,408 331,106 Share-based compensation expense /(benefit) 15,393 1,309 (814 ) Changes in current assets and liabilities: Prepaid and other current assets (71 ) 842 3,933 Taxes payable 811 (630 ) 0 Accrued liabilities 7,905 (2,014 ) 214,156 Net cash used in operating activities (9,219 ) (7,106 ) (6,145 ) Cash flows from financing activities: Issuance of common stock 2,126 0 0 Net cash provided by financing activities 2,126 0 0 Net decrease in cash and cash equivalents (7,093 ) (7,106 ) (6,145 ) Cash and cash equivalents at beginning of year 23,189 16,096 8,990 Cash and cash equivalents at end of year $ 16,096 $ 8,990 $ 2,845 |
The Company and Nature of Ope51
The Company and Nature of Operations (Sogou's Business) (Details) - USD ($) $ in Millions | Nov. 13, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Organization and Nature of Operations [Line Items] | |||||
Share issued and sold upon initial public offering, number of shares | 156,000 | 89,000 | 146,000 | ||
Common stock, shares outstanding (in shares) | 38,898,000 | 38,742,000 | 38,653,000 | 38,507,000 | |
Sogou [Member] | Voting Agreement Related Term One [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Exceptions to the effectiveness of the voting agreement | Within three years following the completion of Sogou's IPO Sohu will vote all Class B Ordinary Shares and any Class A Ordinary Shares held by it and Tencent will vote 45,578,896 of its Class B Ordinary Shares to elect a Board of Directors consisting of seven directors' four of whom will be appointed by Sohu, two of whom will be appointed by Tencent, and the seventh of whom will be Sogou's then chief executive officer within three years following the completion of Sogou's IPO, Sohu will vote all Class B Ordinary Shares and any Class A Ordinary Shares held by it and Tencent will vote 45,578,896 of its Class B Ordinary Shares to elect a Board of Directors consisting of seven directors, four of whom will be appointed by Sohu, two of whom will be appointed by Tencent, and the seventh of whom will be Sogou's then chief executive officer. | ||||
Required terms under conditions that Sohu or Tencent holds not less than 15% of Sogou's issued shares | To amend Sogou's Amended and Restated Memorandum of Association or Amended and Restated Articles of Association. | ||||
Voting agreement termination conditions | If Dr. Charles Zhang, the chairman of the board of directors of Sohu and the chief executive officer, both ceases being the chairman of the board of directors of Sohu and ceases being the single largest beneficial owner of Sohu's outstanding shares; | ||||
Sogou [Member] | Voting Agreement Related Term Two [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Exceptions to the effectiveness of the voting agreement | After three years following the completion of Sogou's IPO, Sohu will be entitled to choose to change the size and composition of Sogou's Board of Directors, subject to Tencent's right to appoint at least one director. | ||||
Required terms under conditions that Sohu or Tencent holds not less than 15% of Sogou's issued shares | To make material changes in Sogou's principal lines of business. | ||||
Voting agreement termination conditions | If Sohu transfers 30% or more of the Class B Ordinary Shares that Sohu held upon the completion of Sogou's IPO; | ||||
Sogou [Member] | Voting Agreement Related Term Three [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Required terms under conditions that Sohu or Tencent holds not less than 15% of Sogou's issued shares | To issue any additional Class B Ordinary Shares. | ||||
Voting agreement termination conditions | If Sogou fails to provide irrevocable instructions to the person maintaining Sogou's register of members to accept instructions from Tencent, under certain circumstances, with respect to the conversion of Class B Ordinary Shares held by Sohu; | ||||
Sogou [Member] | Voting Agreement Related Term Four [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Required terms under conditions that Sohu or Tencent holds not less than 15% of Sogou's issued shares | To create any new class or series of shares that is pari passu with or senior to the Class A Ordinary Shares. | ||||
Voting agreement termination conditions | Sogou changes, without Tencent's consent, the person that maintains Sogou's register of members; | ||||
Sogou [Member] | Voting Agreement Related Term Five [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Required terms under conditions that Sohu or Tencent holds not less than 15% of Sogou's issued shares | For Sogou to approve a liquidation, dissolution or winding up of Sogou, or a merger or consolidation resulting in a change in control, or any disposition of all or substantially all of Sogou's assets. | ||||
Voting agreement termination conditions | If Tencent ceases to own any Class B Ordinary Shares. | ||||
Sogou [Member] | Voting Agreement Related Term Six [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Required terms under conditions that Sohu or Tencent holds not less than 15% of Sogou's issued shares | For Sogou to enter into any transactions with affiliates of Sohu, other than in the ordinary course of business. | ||||
Sogou [Member] | Sohu.com Inc. [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Threshold percentage of voting power with respect to size and composition of subsidiary's board directors | 50.00% | ||||
Voting power held by Sohu after the vote of tencent | 50.10% | ||||
Minimum percentage of ordinary shares transfer to terminate the voting agreement | 30.00% | ||||
Sogou [Member] | Sohu and Tencent [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Minimum percentage of ordinary shares held to remove or replace any director appointed by voting agreement | 50.00% | ||||
Minimum percentage of issued shares held with respect to required terms | 15.00% | ||||
Sogou [Member] | IPO [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Proceeds from IPO, after deducting underwriting discounts and commissions and offering expenses | $ 622.1 | ||||
One-time credit to additional paid-in capital | $ 278.4 | ||||
Sogou [Member] | Class A Ordinary Shares [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Voting right entitled to ordinary shares | 1 | ||||
Sogou [Member] | Class A Ordinary Shares [Member] | Sohu.com Inc. [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Common stock, shares outstanding (in shares) | 10,327,500 | ||||
Sogou [Member] | Class A Ordinary Shares [Member] | IPO [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Share issued and sold upon initial public offering, number of shares | 50,643,856 | ||||
Common stock, shares outstanding (in shares) | 10,327,500 | ||||
Sogou [Member] | Class A Ordinary Shares [Member] | IPO [Member] | Sohu.com Inc. [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Common stock, shares outstanding (in shares) | 3,717,250 | ||||
Sogou [Member] | Class A Ordinary Shares [Member] | IPO [Member] | Photon Group Limited [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Common stock, shares outstanding (in shares) | 32,000,000 | ||||
Sogou [Member] | Class A Ordinary Shares [Member] | IPO [Member] | Various employees of Sogou and Sohu [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Common stock, shares outstanding (in shares) | 32,047,331 | ||||
Sogou [Member] | Class A Ordinary Shares [Member] | IPO [Member] | Public shareholders [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Common stock, shares outstanding (in shares) | 50,643,856 | ||||
Sogou [Member] | Class A Ordinary Shares [Member] | Over-allotment Option [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Share issued and sold upon initial public offering, number of shares | 5,643,856 | ||||
Sogou [Member] | Class B Ordinary Shares [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Voting right entitled to ordinary shares | 10 | ||||
Conversion into Class A ordinary shares, shares, each Class B Ordinary Share | 1 | ||||
Sogou [Member] | Class B Ordinary Shares [Member] | Tencent Holdings Limited [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Number of ordinary shares to be voted to elect directors | 45,578,896 | ||||
Minimum number of ordinary shares held by tencent to be required to vote | 45,578,896 | ||||
Sogou [Member] | Class B Ordinary Shares [Member] | IPO [Member] | Sohu.com Inc. [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Common stock, shares outstanding (in shares) | 127,200,000 | ||||
Sogou [Member] | Class B Ordinary Shares [Member] | IPO [Member] | Tencent Holdings Limited [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Common stock, shares outstanding (in shares) | 151,557,875 | ||||
Sogou [Member] | ADS [Member] | IPO [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Share issued and sold upon initial public offering, number of shares | 50,643,856 | ||||
Sogou [Member] | ADS [Member] | Over-allotment Option [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Share issued and sold upon initial public offering, number of shares | 5,643,856 | ||||
Sogou [Member] | Ordinary Shares [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Common stock, shares outstanding (in shares) | 397,166,312 | ||||
Sogou [Member] | Ordinary Shares [Member] | Sohu.com Inc. [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Percentage of outstanding ordinary shares | 33.00% | ||||
Voting power held by shareholders | 44.00% | ||||
Sogou [Member] | Ordinary Shares [Member] | Tencent Holdings Limited [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Percentage of outstanding ordinary shares | 39.00% | ||||
Voting power held by shareholders | 52.00% |
The Company and Nature of Ope52
The Company and Nature of Operations (Changyou's Business) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Organization and Nature of Operations [Line Items] | ||||
Revenues | $ 1,860,962 | $ 1,650,431 | $ 1,937,091 | |
Common stock, shares outstanding (in shares) | 38,898,000 | 38,742,000 | 38,653,000 | 38,507,000 |
Product Risk [Member] | Total revenues [Member] | TLBB [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Percentage of concentration risk | 11.00% | |||
Product Risk [Member] | Total revenues [Member] | Legacy TLBB [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Percentage of concentration risk | 8.00% | |||
Changyou [Member] | Sohu.com Inc. [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Percentage of outstanding equity capital held by Sohu.com Inc | 68.00% | |||
Voting power held by Sohu.com Inc | 95.00% | |||
Changyou [Member] | Ordinary Shares [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Common stock, shares outstanding (in shares) | 105,436,420 | |||
Changyou [Member] | Class A Ordinary Shares [Member] | Sohu.com Inc. [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Common stock, shares outstanding (in shares) | 1,500,000 | |||
Changyou [Member] | Class A Ordinary Shares [Member] | Various employees of Changyou [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Common stock, shares outstanding (in shares) | 5,666,112 | |||
Changyou [Member] | Class A Ordinary Shares [Member] | Public shareholders [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Common stock, shares outstanding (in shares) | 28,020,308 | |||
Changyou [Member] | Class B Ordinary Shares [Member] | Sohu.com Inc. [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Common stock, shares outstanding (in shares) | 70,250,000 | |||
Changyou [Member] | TLBB [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Revenues | $ 197,700 | |||
Changyou [Member] | Legacy TLBB [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Revenues | $ 139,500 | |||
Changyou [Member] | Product Risk [Member] | Online game revenues [Member] | TLBB [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Percentage of concentration risk | 44.00% | |||
Changyou [Member] | Product Risk [Member] | Online game revenues [Member] | Legacy TLBB [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Percentage of concentration risk | 31.00% | |||
Changyou [Member] | Product Risk [Member] | Total revenues [Member] | TLBB [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Percentage of concentration risk | 34.00% | |||
Changyou [Member] | Product Risk [Member] | Total revenues [Member] | Legacy TLBB [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Percentage of concentration risk | 24.00% |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (Noncontrolling Interest Recognition) (Details) - Changyou [Member] - Sohu.com Inc. [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Line Items] | |
Percentage of outstanding equity capital held by Sohu.com Inc | 68.00% |
Voting power held by Sohu.com Inc | 95.00% |
Summary of Significant Accoun54
Summary of Significant Accounting Policies (Share-based Compensation Expense) (Details) - shares | Jan. 04, 2012 | Dec. 31, 2017 | Jul. 02, 2010 |
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 | 1,500,000 | ||
Sohu 2010 Stock Incentive Plan [Member] | Stock Options [Member] | Ordinary Shares [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 | ||
Sohu (excluding Sohu Video) [Member] | Sohu 2010 Stock Incentive Plan [Member] | Stock Options [Member] | Ordinary Shares [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 | ||
Changyou [Member] | Changyou 2014 Share Incentive Plan [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 | ||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Stock Options [Member] | Class A Ordinary Shares [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 | ||
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Installments of share options granted | Four equal installments | ||
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 | 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 shares purchased on granted options | 16,368,200 | ||
Number of shares purchased on vested options | 4,972,800 |
Summary of Significant Accoun55
Summary of Significant Accounting Policies (Taxation) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Taxation [Line Items] | |||
Withholding tax rate on dividends, foreign invested enterprises to foreign holding companies | 10.00% | ||
Value-added tax rate | 6.00% | ||
U.S. corporate income tax rate | 35.00% | 35.00% | 35.00% |
Thereafter tax years [Member] | |||
Taxation [Line Items] | |||
U.S. corporate income tax rate | 21.00% | ||
Prior tax years [Member] | |||
Taxation [Line Items] | |||
U.S. corporate income tax rate | 35.00% | ||
HONG KONG | |||
Taxation [Line Items] | |||
Preferential withholding tax rate on dividends, foreign invested enterprises | 5.00% |
Summary of Significant Accoun56
Summary of Significant Accounting Policies (Balance Sheet Elements) (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Time deposits, maximum of original maturity | 3 months |
Fixed assets, residual value | $ 0 |
Intangible assets, residual value | $ 0 |
Summary of Significant Accoun57
Summary of Significant Accounting Policies (Estimated Useful Lives of Fixed Assets) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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 |
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 Accoun58
Summary of Significant Accounting Policies (Estimated Useful Lives of Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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) | 6 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 |
Segment Information (Segment Op
Segment Information (Segment Operating Information by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Operating Segments [Member] | Sohu [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | $ 374,696 | $ 468,515 | $ 590,471 | |
Segment cost of revenues | (414,526) | (391,417) | (393,564) | ||
Segment gross profit | (39,830) | 77,098 | 196,907 | ||
SBC in cost of revenues | [2] | 415 | (164) | (1,381) | |
Gross profit | (39,415) | 76,934 | 195,526 | ||
Operating expenses: | |||||
Product development | [3] | (113,590) | (96,815) | (94,392) | |
Sales and marketing | [1],[3] | (199,304) | (259,800) | (203,332) | |
General and administrative | [3] | (44,563) | (47,804) | (57,014) | |
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 0 | 0 | |||
SBC in operating expenses | [2] | (765) | (1,703) | (26,743) | |
Total operating expenses | (358,222) | (406,122) | (381,481) | ||
Operating profit /(loss) | (397,637) | (329,188) | (185,955) | ||
Other income /(expense) | [3] | 4,694 | 5,360 | 92,455 | [4] |
Interest income | [5] | 7,344 | 8,879 | 7,690 | |
Interest expense | [5] | (24,367) | (10,103) | (5,007) | |
Exchange difference | (2,107) | 2,349 | 1,716 | ||
Income /(loss) before income tax benefit /(expense) | (412,073) | (322,703) | (89,101) | ||
Income tax benefit /(expense) | (217,959) | 538 | (13,451) | ||
Net income /(loss) | (630,032) | (322,165) | (102,552) | ||
Operating Segments [Member] | Sogou [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | 908,357 | 660,408 | 591,803 | |
Segment cost of revenues | (456,861) | (302,565) | (247,949) | ||
Segment gross profit | 451,496 | 357,843 | 343,854 | ||
SBC in cost of revenues | [2] | (540) | (171) | (330) | |
Gross profit | 450,956 | 357,672 | 343,524 | ||
Operating expenses: | |||||
Product development | [3] | (156,359) | (132,749) | (124,210) | |
Sales and marketing | [1],[3] | (152,121) | (121,303) | (93,055) | |
General and administrative | [3] | (25,407) | (19,308) | (14,422) | |
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 0 | 0 | |||
SBC in operating expenses | [2] | (27,193) | (8,680) | (10,049) | |
Total operating expenses | (361,080) | (282,040) | (241,736) | ||
Operating profit /(loss) | 89,876 | 75,632 | 101,788 | ||
Other income /(expense) | [3] | 692 | (26,027) | 1,142 | [4] |
Interest income | [5] | 9,126 | 5,198 | 5,332 | |
Interest expense | [5] | 0 | 0 | 0 | |
Exchange difference | (7,082) | 5,346 | 667 | ||
Income /(loss) before income tax benefit /(expense) | 92,612 | 60,149 | 108,929 | ||
Income tax benefit /(expense) | (14,422) | (27) | (9,430) | ||
Net income /(loss) | 78,190 | 60,122 | 99,499 | ||
Operating Segments [Member] | Changyou [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | 580,261 | 525,385 | 761,636 | |
Segment cost of revenues | (163,713) | (165,779) | (216,727) | ||
Segment gross profit | 416,548 | 359,606 | 544,909 | ||
SBC in cost of revenues | [2] | (73) | (31) | (37) | |
Gross profit | 416,475 | 359,575 | 544,872 | ||
Operating expenses: | |||||
Product development | [3] | (124,869) | (118,738) | (165,130) | |
Sales and marketing | [1],[3] | (59,705) | (55,971) | (91,334) | |
General and administrative | [3] | (37,218) | (45,642) | (71,771) | |
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | (86,882) | (40,324) | |||
SBC in operating expenses | [2] | (17,320) | (8,371) | (14,988) | |
Total operating expenses | (325,994) | (228,722) | (383,547) | ||
Operating profit /(loss) | 90,481 | 130,853 | 161,325 | ||
Other income /(expense) | [3] | 9,374 | 15,523 | 64,961 | [4] |
Interest income | [5] | 32,319 | 21,490 | 23,779 | |
Interest expense | [5] | (4,372) | (4,321) | (8,335) | |
Exchange difference | (5,196) | 5,108 | 2,954 | ||
Income /(loss) before income tax benefit /(expense) | 122,606 | 168,653 | 244,684 | ||
Income tax benefit /(expense) | (40,767) | (21,583) | (54,055) | ||
Net income /(loss) | 81,839 | 147,070 | 190,629 | ||
Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | (2,352) | (3,877) | (6,819) | |
Segment cost of revenues | 132 | 327 | 924 | ||
Segment gross profit | (2,220) | (3,550) | (5,895) | ||
SBC in cost of revenues | [2] | 0 | 0 | 0 | |
Gross profit | (2,220) | (3,550) | (5,895) | ||
Operating expenses: | |||||
Product development | [3] | 6,192 | 4,342 | 4,932 | |
Sales and marketing | [1],[3] | 4,000 | 4,688 | 6,845 | |
General and administrative | [3] | 130 | 89 | (656) | |
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 0 | 0 | |||
SBC in operating expenses | [2] | 0 | 0 | 85 | |
Total operating expenses | 10,322 | 9,119 | 11,206 | ||
Operating profit /(loss) | 8,102 | 5,569 | 5,311 | ||
Other income /(expense) | [3] | (8,102) | (5,569) | (84,032) | [4] |
Interest income | [5] | (24,651) | (13,068) | (6,158) | |
Interest expense | [5] | 24,651 | 13,068 | 6,158 | |
Exchange difference | 0 | 0 | 0 | ||
Income /(loss) before income tax benefit /(expense) | 0 | 0 | (78,721) | ||
Income tax benefit /(expense) | 0 | 0 | 0 | ||
Net income /(loss) | 0 | 0 | (78,721) | ||
Revenues | 1,860,962 | 1,650,431 | 1,937,091 | ||
Segment cost of revenues | (1,034,968) | (859,434) | (857,316) | ||
Segment gross profit | 825,994 | 790,997 | 1,079,775 | ||
SBC in cost of revenues | [2] | (198) | (366) | (1,748) | |
Gross profit | 825,796 | 790,631 | 1,078,027 | ||
Product development | [3] | (388,626) | (343,960) | (378,800) | |
Sales and marketing | [1],[3] | (407,130) | (432,386) | (380,876) | |
General and administrative | [3] | (107,058) | (112,665) | (143,863) | |
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | (86,882) | 0 | (40,324) | ||
SBC in operating expenses | [2] | (45,278) | (18,754) | (51,695) | |
Total operating expenses | (1,034,974) | (907,765) | (995,558) | ||
Operating profit /(loss) | (209,178) | (117,134) | 82,469 | ||
Other income /(expense) | 6,658 | (10,713) | 74,526 | ||
Interest income | 24,138 | 22,499 | 30,643 | ||
Interest expense | (4,088) | (1,356) | (7,184) | ||
Exchange difference | (14,385) | 12,803 | 5,337 | ||
Income /(loss) before income tax benefit /(expense) | (196,855) | (93,901) | 185,791 | ||
Income tax benefit /(expense) | (273,148) | (21,072) | (76,936) | ||
Net income /(loss) | $ (470,003) | $ (114,973) | $ 108,855 | ||
[1] | The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou and Changyou segments. | ||||
[2] | "SBC" stands for share-based compensation expense. | ||||
[3] | The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. | ||||
[4] | In the third quarter of 2015, Sogou purchased from Sohu 24.0 million Sogou Pre-IPO Series A Preferred Shares of Sogou for $78.8 million. Sohu recognized $78.8 million in other income, which was eliminated in the Group's consolidated statements of comprehensive income. | ||||
[5] | The elimination represents interest income/ (expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. |
Segment Information (Segment As
Segment Information (Segment Assets Information by Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Segments [Member] | Sohu [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | $ 98,750 | $ 167,691 | |||
Accounts receivable, net | 86,801 | 100,317 | |||
Fixed assets, net | 200,561 | 196,839 | |||
Total assets | [1] | 1,124,759 | 1,241,844 | ||
Operating Segments [Member] | Sogou [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | 694,207 | 286,078 | |||
Accounts receivable, net | 72,117 | 41,781 | |||
Fixed assets, net | 139,209 | 117,022 | |||
Total assets | [1] | 1,321,036 | 499,589 | ||
Operating Segments [Member] | Changyou [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | 571,139 | 597,188 | |||
Accounts receivable, net | 91,636 | 47,150 | |||
Fixed assets, net | 189,947 | 189,770 | |||
Total assets | [1] | 1,922,023 | 1,708,037 | ||
Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | 0 | 0 | |||
Accounts receivable, net | (86) | (81) | |||
Fixed assets, net | 0 | 0 | |||
Total assets | [1] | (978,579) | (885,780) | ||
Cash and cash equivalents | 1,364,096 | 1,050,957 | $ 1,245,205 | $ 876,340 | |
Accounts receivable, net | 250,468 | 189,167 | $ 273,617 | ||
Fixed assets, net | 529,717 | 503,631 | |||
Total assets | $ 3,389,239 | $ 2,563,690 | |||
[1] | The elimination for segment assets mainly consists of elimination of intra-Group loans between the Sohu segment and the Changyou segment, and 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 Pre-IPO Series A Preferred Shares, shares | shares | 24 |
Purchase of Pre-IPO Series A Preferred Shares, aggregate purchase price | $ | $ 78.8 |
Share-based Compensation Expe62
Share-based Compensation Expense (Share-based Compensation Expense Recognized in Costs and Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 45,477 | $ 19,120 | $ 53,443 |
Cost of revenues [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 198 | 366 | 1,748 |
Product development expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 23,547 | 9,184 | 19,344 |
Sales and marketing expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 5,915 | 2,394 | 3,054 |
General and administrative expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 15,817 | $ 7,176 | $ 29,297 |
Share-based Compensation Expe63
Share-based Compensation Expense (Share-based Compensation Expense Recognized for Share Awards of Sohu (excluding Sohu Video), Sogou, Changyou and Sohu Video) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 45,477,000 | $ 19,120,000 | $ 53,443,000 | ||
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 | 652,000 | 2,761,000 | 27,811,000 | ||
Sogou [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | [1] | 27,729,000 | 8,802,000 | 10,310,000 | |
Sogou [Member] | Former President and Chief Financial Officer of Sohu Group [Member] | Class A Ordinary Shares [Member] | Pre-IPO [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 4,000,000 | 4,000,000 | |||
Changyou [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | 17,394,000 | 8,402,000 | 15,024,000 | ||
Sohu Video [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | [2] | $ (298,000) | $ (845,000) | $ 298,000 | |
[1] | Compensation expense for Sogou share-based awards also includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search and search-related businesses and compensation expense of $4.0 million, recognized in the first quarter of 2017 in connection with Sogou's repurchase of Sogou Pre-IPO Class A Ordinary Shares from the former President and Chief Financial Officer of the Sohu Group, which is equal to the excess of the repurchase price over the fair value of the Sogou Pre-IPO Class A Ordinary Shares as of the repurchase date. | ||||
[2] | The negative amount resulted from re-measured compensation expense based on the then-current fair value of the awards on the reporting date. |
Advertising and Promotional E64
Advertising and Promotional Expenses, included in Sales and Marketing Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
ADVERTISING AND PROMOTIONAL EXPENSES, INCLUDED IN SALES AND MARKETING EXPENSES [Abstract] | |||
Advertising and promotional expenses | $ 249.7 | $ 270.2 | $ 196.9 |
Other Income _(Expense), net (D
Other Income /(Expense), net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
OTHER INCOME /(EXPENSE), NET [Abstract] | ||||
Investment income/(expense) | [1] | $ (2,051) | $ (1,908) | $ 60,264 |
Gain from the changes in fair value of financial instruments | 6,665 | 13,133 | 9,374 | |
Government grant | 2,166 | 2,112 | 2,839 | |
Donations | [2] | (218) | (27,982) | (1,192) |
Write-off of unpaid long-term accounts payable | 2,031 | 0 | 0 | |
Impairment loss on available-for-sale equity securities | (5,754) | 0 | 0 | |
Others | 3,819 | 3,932 | 3,241 | |
Total | $ 6,658 | $ (10,713) | $ 74,526 | |
[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. | |||
[2] | In the second quarter of 2016, the Sohu Group recognized a one-time expense of $27.8 million that was related to a donation by Sogou to Tsinghua University related to setting up a joint research institute focusing on artificial intelligence technology. |
Other Income _(Expense), net (N
Other Income /(Expense), net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Other Income and Expense [Line Items] | ||||||
Investment income | [1] | $ (2,051) | $ (1,908) | $ 60,264 | ||
Disposal gain recognized in business transaction | 0 | 0 | 55,139 | |||
Investment loss from other equity investments | 8,900 | |||||
Impairment loss on an available-for-sale equity security | $ 5,754 | $ 0 | 0 | |||
Sogou [Member] | ||||||
Other Income and Expense [Line Items] | ||||||
One-time expense related to donation | $ 27,800 | |||||
Keyeast [Member] | ||||||
Other Income and Expense [Line Items] | ||||||
Impairment loss on an available-for-sale equity security | $ 5,800 | |||||
Changyou [Member] | ||||||
Other Income and Expense [Line Items] | ||||||
Disposal gain recognized in business transaction | 55,100 | |||||
Sohu [Member] | ||||||
Other Income and Expense [Line Items] | ||||||
Disposal gain for sale of an equity investment | $ 13,000 | |||||
[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 $8.9 million investment loss from the Group's other equity investments. |
Balance Sheet Components Accoun
Balance Sheet Components Accounts Receivanle (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts receivable, net | ||||
Accounts receivable | $ 256,131 | $ 194,008 | $ 277,593 | |
Allowance for doubtful accounts | (5,663) | (4,841) | (3,976) | $ (4,068) |
Accounts receivable, net | $ 250,468 | $ 189,167 | $ 273,617 |
Balance Sheet Components Moveme
Balance Sheet Components Movement of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
BALANCE SHEET COMPONENTS [Abstract] | |||
Balance at the beginning of year | $ 4,841 | $ 3,976 | $ 4,068 |
Additional provision for bad debt, net of recoveries | 9,076 | 7,109 | 2,175 |
Write-offs | (8,634) | (5,992) | (2,064) |
Exchange difference | 380 | (252) | (203) |
Balance at the end of year | $ 5,663 | $ 4,841 | $ 3,976 |
Balance Sheet Components Other
Balance Sheet Components Other Assests and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Prepaid and other current assets | ||
Prepaid content and license | $ 35,442 | $ 119,810 |
Prepaid taxes | 35,551 | 30,308 |
Matching loan due from a related party | 32,005 | 29,019 |
Loans to third parties | 28,544 | 25,494 |
Due from Shenzhen 7Road | 5,344 | 12,509 |
Prepaid cost of revenue | 14,782 | 10,085 |
Prepaid rental deposit | 9,314 | 9,817 |
Receivables from third party payment platforms | 3,350 | 4,027 |
Employee advances | 4,109 | 4,013 |
Interest receivable | 2,515 | 1,595 |
Prepaid advertising and promotion fees | 3,371 | 1,506 |
Prepaid office rent and facilities expenses | 3,265 | 1,378 |
Others | 15,083 | 10,572 |
Prepaid and other current assets | 192,675 | 260,133 |
Prepaid non-current assets | ||
Prepaid PRC income tax for the sale of assets associated with 17173.com by Sohu to Changyou | 4,020 | 4,733 |
Others | 191 | 1 |
Prepaid non-current assets | 4,211 | 4,734 |
Other short-term liabilities | ||
Deposit received from membership card buyers | 29,889 | 61,708 |
Matching loan due to a related party | 31,192 | 28,678 |
Contract deposits from advertisers | 29,078 | 24,385 |
Donation payable | 7,652 | 17,299 |
Consideration payable for equity investment | 6,427 | 5,280 |
Early exercise of Sogou share options for trust arrangements | 4,503 | 4,504 |
Accrued liabilities to suppliers | 6,725 | 3,817 |
Employee individual income tax withholding for options | 0 | 2,382 |
Accrued business tax arising from the sale of assets associated with 17173.com by Sohu to Changyou | 0 | 1,625 |
Government grant | 765 | 0 |
Foreign exchange forward contracts | 715 | 0 |
Others | 19,354 | 9,637 |
Other short-term liabilities | 136,300 | 159,315 |
Receipts in advance relating to: | ||
brand advertising business | 12,858 | 12,332 |
search and search-related business | 66,223 | 59,593 |
online game business | 18,498 | 15,225 |
others business | 5,327 | 2,732 |
Total receipts in advance | 102,906 | 89,882 |
Deferred revenue | 24,852 | 29,069 |
Receipts in advance and deferred revenue | $ 127,758 | $ 118,951 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Feb. 29, 2016 | Apr. 30, 2015 | Aug. 31, 2014 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||||||||
Interest expense incurred | $ 724,000 | $ 662,000 | $ 106,000 | |||||
Interest income earned | 1,157,000 | 1,244,000 | 435,000 | |||||
Interest income receivable from related parities | 2,515,000 | 1,595,000 | ||||||
Brand advertising revenue from a related party | 0 | 862,000 | 0 | |||||
Sales and marketing expense for a related party | 0 | 216,000 | $ 0 | |||||
Fox Financial [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Investment amount in period | $ 10,500,000 | $ 16,100,000 | $ 4,800,000 | |||||
Brand advertising revenue from a related party | 0 | 900,000 | ||||||
Sales and marketing expense for a related party | 0 | 200,000 | ||||||
Changyou [Member] | Fox Financial [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Loans drew down from related party | $ 29,900,000 | |||||||
Loans granted to related party | $ 30,200,000 | |||||||
Loans repaid to related parities | $ 12,900,000 | |||||||
Loans received from related parities | $ 12,100,000 | |||||||
Loans payable to related parities | 29,800,000 | 28,100,000 | ||||||
Loans receivable from related parities | 29,800,000 | 28,100,000 | ||||||
Interest expense incurred | 700,000 | 700,000 | ||||||
Interest income earned | 1,200,000 | 1,200,000 | ||||||
Interest expense payable to related parities | 1,400,000 | 600,000 | ||||||
Interest income receivable from related parities | $ 2,200,000 | $ 900,000 |
Intra-Group Loan and Share Pl71
Intra-Group Loan and Share Pledge Agreement (Details) ¥ in Millions, $ in Millions | Oct. 24, 2016USD ($)shares | Oct. 24, 2016CNY (¥)shares | Apr. 30, 2017USD ($) | Apr. 30, 2017CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2017USD ($)shares | Dec. 31, 2017CNY (¥)shares |
Sohu Media [Member] | AmazGame [Member] | Loan Agreement [Member] | ||||||||||
Intracompany Loan and Share Pledge Agreement [Line Items] | ||||||||||
Maximum amount of loan Sohu Media can borrow from AmazGame | $ 144.9 | ¥ 1,000 | ||||||||
Annual interest rate | 6.00% | 6.00% | ||||||||
Loans received from related parties | $ 44.3 | ¥ 300 | $ 29.5 | ¥ 200 | $ 73.8 | ¥ 500 | ||||
Total outstanding balance of loan received from related parties | $ 153 | ¥ 1,000 | ||||||||
Sohu Game [Member] | Changyou [Member] | Share Pledge Agreement [Member] | Class B Ordinary Shares [Member] | ||||||||||
Intracompany Loan and Share Pledge Agreement [Line Items] | ||||||||||
Shares pledged | 11,386,228 | 11,386,228 | 13,704,663 | 13,704,663 | ||||||
Sohu Game [Member] | Changyou [Member] | Share Pledge Agreement [Member] | ADS [Member] | ||||||||||
Intracompany Loan and Share Pledge Agreement [Line Items] | ||||||||||
Consecutive trading days | 10 days | 10 days | ||||||||
Sohu Game [Member] | Changyou [Member] | Share Pledge Agreement [Member] | ADS [Member] | Minimum [Member] | ||||||||||
Intracompany Loan and Share Pledge Agreement [Line Items] | ||||||||||
Consecutive trading days | 10 days | 10 days | ||||||||
Percentage of share price drop | 20.00% | 20.00% | ||||||||
Percentage of additional incremental share price drop | 20.00% | 20.00% |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments, Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 818,900 | $ 247,900 |
Foreign exchange forward contracts recognized in other short-term liabilities | 715 | 0 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,136,892 | 626,697 |
Short-term investments | 818,934 | 247,926 |
Available-for-sale equity securities | 21,307 | 10,381 |
Foreign exchange forward contracts recognized in prepaid and other current assets | 3,040 | |
Foreign exchange forward contracts recognized in other short-term liabilities | 715 | |
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 |
Short-term investments | 0 | 0 |
Available-for-sale equity securities | 21,307 | 10,381 |
Foreign exchange forward contracts recognized in prepaid and other current assets | 0 | |
Foreign exchange forward contracts recognized in other short-term liabilities | 0 | |
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 | 1,136,892 | 626,697 |
Short-term investments | 818,934 | 247,926 |
Available-for-sale equity securities | 0 | 0 |
Foreign exchange forward contracts recognized in prepaid and other current assets | 3,040 | |
Foreign exchange forward contracts recognized in other short-term liabilities | 715 | |
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 |
Short-term investments | 0 | 0 |
Available-for-sale equity securities | 0 | 0 |
Foreign exchange forward contracts recognized in prepaid and other current assets | $ 0 | |
Foreign exchange forward contracts recognized in other short-term liabilities | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) ¥ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (Â¥) | Jul. 31, 2017USD ($) | Jul. 31, 2017CNY (Â¥) | May 31, 2017USD ($) | May 31, 2017CNY (Â¥) | Mar. 31, 2017USD ($) | Feb. 29, 2016USD ($) | Apr. 30, 2015USD ($) | Aug. 31, 2014USD ($) | Sep. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017CNY (Â¥) | Sep. 30, 2017CNY (Â¥) | Aug. 02, 2017 | May 31, 2017CNY (Â¥) | Jan. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Aug. 12, 2014USD ($) | May 05, 2011USD ($) | May 05, 2011CNY (Â¥) | |
Short-term Investments [Abstract] | ||||||||||||||||||||||||
Investments in financial instruments | $ 818,900,000 | $ 247,900,000 | ||||||||||||||||||||||
Change in fair value of short-term investments | 13,900,000 | 10,100,000 | $ 9,400,000 | |||||||||||||||||||||
Foreign Exchange Forward Contracts [Abstract] | ||||||||||||||||||||||||
Aggregate notional amount of foreign exchange forward contracts | 10,000,000 | 100,000,000 | ||||||||||||||||||||||
Gain from changes in fair value of foreign exchange forward contracts | 7,200,000 | 3,000,000 | ||||||||||||||||||||||
Cash outflows under forward contracts | 3,500,000 | 0 | ||||||||||||||||||||||
Foreign exchange forward contracts recognized in other short-term liabilities | 715,000 | 0 | ||||||||||||||||||||||
Short-term Banks Loans [Abstract] | ||||||||||||||||||||||||
Short-term bank loans | 61,216,000 | 0 | ||||||||||||||||||||||
Long-term Payables [Abstract] | ||||||||||||||||||||||||
Long-term bank loans | 122,433,000 | $ 0 | ||||||||||||||||||||||
Factoring Contract with recourse with HSBC [Member] | HSBC [Member] | ||||||||||||||||||||||||
Short-term Banks Loans [Abstract] | ||||||||||||||||||||||||
Loans may borrow from bank | $ 27,100,000 | ¥ 180 | ||||||||||||||||||||||
Accounts receivable to secure short-term bank loan | 29,800,000 | ¥ 198 | ||||||||||||||||||||||
Short-term bank loans | 0 | |||||||||||||||||||||||
Credit agreement with Ping An Bank [Member] | Ping An Bank [Member] | ||||||||||||||||||||||||
Short-term Banks Loans [Abstract] | ||||||||||||||||||||||||
Loans may borrow from bank | $ 90,400,000 | ¥ 600 | $ 376,700,000 | ¥ 2,500 | ||||||||||||||||||||
Short-term bank loans | 61,200,000 | ¥ 400 | ||||||||||||||||||||||
Times over reference interest rate | 150.00% | 150.00% | 115.00% | 115.00% | ||||||||||||||||||||
Loan received from bank | $ 59,000,000 | ¥ 400 | ||||||||||||||||||||||
Short-term loan, interest rate | 6.525% | 6.525% | ||||||||||||||||||||||
Credit agreement with ICBC [Member] | ICBC [Member] | ||||||||||||||||||||||||
Long-term Payables [Abstract] | ||||||||||||||||||||||||
Loans may borrow from bank | $ 123,000,000 | $ 123,000,000 | ¥ 800 | |||||||||||||||||||||
Installments of long-term loan payable | Four equal installments | Four equal installments | ||||||||||||||||||||||
Additional interest rate over LPR | 1.20% | 1.20% | ||||||||||||||||||||||
Long-term bank loans | 122,000,000 | 800 | ||||||||||||||||||||||
Long-term Investment in Fox Financial [Member] | ||||||||||||||||||||||||
Long-term Investment [Abstract] | ||||||||||||||||||||||||
Investment amount in period | $ 10,500,000 | $ 16,100,000 | $ 4,800,000 | |||||||||||||||||||||
Carrying value of Investment | 24,700,000 | |||||||||||||||||||||||
Long-term Investment in Fox Financial [Member] | Ordinary Shares [Member] | ||||||||||||||||||||||||
Long-term Investment [Abstract] | ||||||||||||||||||||||||
Equity method investment, ownership percentage in Fox Financial, before dilution | 7.00% | |||||||||||||||||||||||
Equity method investment, ownership percentage in Fox Financial, after dilution | 6.00% | |||||||||||||||||||||||
Dilution gain | $ 700,000 | |||||||||||||||||||||||
Keyeast [Member] | ||||||||||||||||||||||||
Available-for-Sale Equity Securities [Abstract] | ||||||||||||||||||||||||
Impairment loss | $ 5,800,000 | |||||||||||||||||||||||
Fair value of available-for-sale equity securities | 10,200,000 | |||||||||||||||||||||||
Unrealized income representing change in fair value | 900,000 | |||||||||||||||||||||||
Keyeast [Member] | Ordinary Shares [Member] | ||||||||||||||||||||||||
Available-for-Sale Equity Securities [Abstract] | ||||||||||||||||||||||||
Percentage of total outstanding common shares acquired classified as available-for-sale equity securities | 6.00% | |||||||||||||||||||||||
Purchase price of available-for-sale equity securities | $ 15,100,000 | |||||||||||||||||||||||
Hylink [Member] | ||||||||||||||||||||||||
Available-for-Sale Equity Securities [Abstract] | ||||||||||||||||||||||||
Fair value of available-for-sale equity securities | 11,100,000 | ¥ 72.6 | ||||||||||||||||||||||
Unrealized income representing change in fair value | 8,800,000 | |||||||||||||||||||||||
Percentage of equity interest acquired and accounted under cost method | 2.00% | 2.00% | ||||||||||||||||||||||
Purchase price of equity interest acquired and accounted under cost method | $ 2,300,000 | ¥ 15 | ||||||||||||||||||||||
Percentage of equity interest after dilution and reclassified as available-for-sale equity securities | 1.50% | |||||||||||||||||||||||
Changyou [Member] | ||||||||||||||||||||||||
Foreign Exchange Forward Contracts [Abstract] | ||||||||||||||||||||||||
Aggregate notional amount of foreign exchange forward contracts | $ 50,000,000 | $ 100,000,000 | ||||||||||||||||||||||
Changyou [Member] | MoboTap [Member] | ||||||||||||||||||||||||
Assets and Liabilities Held for Sale [Abstract] | ||||||||||||||||||||||||
Disposal of equity interest in MoboTap | 51.00% | |||||||||||||||||||||||
Catch up of depreciation and amortization expense of the assets held for sale before the reclassification | $ 1,400,000 | |||||||||||||||||||||||
Sogou [Member] | Long-term Investment in Zhihu [Member] | ||||||||||||||||||||||||
Long-term Investment [Abstract] | ||||||||||||||||||||||||
Carrying value of Investment | $ 18,900,000 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Purchased video content recorded in prepaid and other assets | $ 10,192 | $ 75,389 |
Intangible assets, net | 23,060 | 32,131 |
Goodwill | 71,565 | 68,290 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Purchased video content recorded in prepaid and other assets | 0 | 0 |
Intangible assets, net | 0 | 0 |
Goodwill | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Purchased video content recorded in prepaid and other assets | 0 | 0 |
Intangible assets, net | 0 | 0 |
Goodwill | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Purchased video content recorded in prepaid and other assets | 10,192 | 75,389 |
Intangible assets, net | 23,060 | 32,131 |
Goodwill | $ 71,565 | $ 68,290 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fixed assets, net | |||
Fixed assets, gross | $ 839,940 | $ 751,783 | |
Accumulated depreciation | (310,223) | (248,152) | |
Fixed assets, net | 529,717 | 503,631 | |
Depreciation expenses for fixed assets | 83,114 | 73,449 | $ 77,421 |
Office buildings [Member] | |||
Fixed assets, net | |||
Fixed assets, gross | 391,490 | 368,758 | |
Computer equipment and hardware [Member] | |||
Fixed assets, net | |||
Fixed assets, gross | 388,693 | 323,592 | |
Leasehold and building improvements [Member] | |||
Fixed assets, net | |||
Fixed assets, gross | 45,849 | 46,164 | |
Office furniture [Member] | |||
Fixed assets, net | |||
Fixed assets, gross | 9,879 | 9,789 | |
Vehicles [Member] | |||
Fixed assets, net | |||
Fixed assets, gross | $ 4,029 | $ 3,480 |
Goodwill (Carrying Value of Goo
Goodwill (Carrying Value of Goodwill by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 174,525 | $ 260,454 |
Accumulated impairment losses, Beginning Balance | (106,235) | (106,235) |
Goodwill, Net, Beginning Balance | 68,290 | 154,219 |
Transactions in Period [Abstract] | ||
Goodwill associated with MoboTap and transferred to assets held for sale | (83,470) | |
Goodwill associated with MoboTap and reclassified from assets held for sale to assets held for use | 83,470 | |
Goodwill impairment recognized for MoboTap | (83,470) | |
Goodwill associated with an acquisition | 1,000 | |
Foreign currency translation adjustment | 2,275 | (2,459) |
Goodwill, Ending Balance | 261,270 | 174,525 |
Accumulated impairment losses, Ending Balance | (189,705) | (106,235) |
Goodwill, Net, Ending Balance | 71,565 | 68,290 |
Operating Segments [Member] | Sohu [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 72,011 | 72,980 |
Accumulated impairment losses, Beginning Balance | (35,788) | (35,788) |
Goodwill, Net, Beginning Balance | 36,223 | 37,192 |
Transactions in Period [Abstract] | ||
Goodwill associated with MoboTap and transferred to assets held for sale | 0 | |
Goodwill associated with MoboTap and reclassified from assets held for sale to assets held for use | 0 | |
Goodwill impairment recognized for MoboTap | 0 | |
Goodwill associated with an acquisition | 1,000 | |
Foreign currency translation adjustment | 930 | (969) |
Goodwill, Ending Balance | 73,941 | 72,011 |
Accumulated impairment losses, Ending Balance | (35,788) | (35,788) |
Goodwill, Net, Ending Balance | 38,153 | 36,223 |
Operating Segments [Member] | Sogou [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 5,565 | 5,945 |
Accumulated impairment losses, Beginning Balance | 0 | 0 |
Goodwill, Net, Beginning Balance | 5,565 | 5,945 |
Transactions in Period [Abstract] | ||
Goodwill associated with MoboTap and transferred to assets held for sale | 0 | |
Goodwill associated with MoboTap and reclassified from assets held for sale to assets held for use | 0 | |
Goodwill impairment recognized for MoboTap | 0 | |
Goodwill associated with an acquisition | 0 | |
Foreign currency translation adjustment | 343 | (380) |
Goodwill, Ending Balance | 5,908 | 5,565 |
Accumulated impairment losses, Ending Balance | 0 | 0 |
Goodwill, Net, Ending Balance | 5,908 | 5,565 |
Operating Segments [Member] | Changyou [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 96,949 | 181,529 |
Accumulated impairment losses, Beginning Balance | (70,447) | (70,447) |
Goodwill, Net, Beginning Balance | 26,502 | 111,082 |
Transactions in Period [Abstract] | ||
Goodwill associated with MoboTap and transferred to assets held for sale | (83,470) | |
Goodwill associated with MoboTap and reclassified from assets held for sale to assets held for use | 83,470 | |
Goodwill impairment recognized for MoboTap | (83,470) | |
Goodwill associated with an acquisition | 0 | |
Foreign currency translation adjustment | 1,002 | (1,110) |
Goodwill, Ending Balance | 181,421 | 96,949 |
Accumulated impairment losses, Ending Balance | (153,917) | (70,447) |
Goodwill, Net, Ending Balance | $ 27,504 | $ 26,502 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($) | Dec. 31, 2017ReportingUnits | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Sohu.com Inc. [Member] | ||||
Goodwill [Line Items] | ||||
Number of reporting units | ReportingUnits | 1 | |||
Sogou [Member] | ||||
Goodwill [Line Items] | ||||
Number of reporting units | ReportingUnits | 1 | |||
Changyou [Member] | ||||
Goodwill [Line Items] | ||||
Number of reporting units | ReportingUnits | 5 | |||
Changyou [Member] | MoboTap [Member] | ||||
Goodwill [Line Items] | ||||
Percentage of disposed equity interest | 51.00% | |||
Reclassification of goodwill to assets held for sale | $ | $ 83.5 | |||
Changyou [Member] | Doyo [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill impairment losses | $ | $ 1.9 | |||
Changyou [Member] | MoboTap [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill impairment losses | $ | $ 83.5 | $ 29.6 |
Intangible Assets, Net (Finite-
Intangible Assets, Net (Finite-lived Intangible Assets by Major Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 281,825 | $ 281,169 |
Accumulated amortization | (199,813) | (203,889) |
Impairment | (58,952) | (45,149) |
Net carrying amount | 23,060 | 32,131 |
Purchased video content [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 152,135 | 181,100 |
Accumulated amortization | (135,177) | (159,549) |
Impairment | (11,275) | (12,759) |
Net carrying amount | 5,683 | 8,792 |
Operating rights for licensed games [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 34,296 | 30,497 |
Accumulated amortization | (17,882) | (13,178) |
Impairment | (10,924) | (9,208) |
Net carrying amount | 5,490 | 8,111 |
Domain names and trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 33,630 | 29,466 |
Accumulated amortization | (11,144) | (9,872) |
Impairment | (13,279) | (9,758) |
Net carrying amount | 9,207 | 9,836 |
Computer software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 17,413 | 16,521 |
Accumulated amortization | (15,401) | (13,015) |
Impairment | 0 | 0 |
Net carrying amount | 2,012 | 3,506 |
Developed technologies [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 19,300 | 8,818 |
Accumulated amortization | (5,020) | (1,252) |
Impairment | (14,089) | (7,369) |
Net carrying amount | 191 | 197 |
Cinema advertising slot rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 0 | 3,199 |
Accumulated amortization | 0 | (2,625) |
Impairment | 0 | 0 |
Net carrying amount | 0 | 574 |
Others [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 25,051 | 11,568 |
Accumulated amortization | (15,189) | (4,398) |
Impairment | (9,385) | (6,055) |
Net carrying amount | $ 477 | $ 1,115 |
Intangible Assets, Net (Narrati
Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total losses for impairment | $ 22.9 | ||
Intangible assets impairment losses | $ 19.9 | ||
Amortization of intangible assets | $ 140.7 | 131.2 | 161.1 |
Sohu Video's intangible assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total losses for impairment | 18.6 | ||
Intangible assets impairment losses | 2.9 | ||
Prepaid and other current assets impairment losses | $ 15.7 | ||
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 | ||
Sohu.com Inc. [Member] | Sohu Video's intangible assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total losses for impairment | 70.6 | ||
Intangible assets impairment losses | 43.1 | ||
Prepaid and other current assets impairment losses | 27.5 | ||
Changyou [Member] | MoboTap's intangible assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets impairment losses | $ 3.4 |
Intangible Assets, Net (Estimat
Intangible Assets, Net (Estimated Amortization Expenses for Future Periods) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
INTANGIBLE ASSETS, NET [Abstract] | ||
2,018 | $ 8,924 | |
2,019 | 5,139 | |
2,020 | 1,295 | |
2,021 | 1,274 | |
2,022 | 1,070 | |
Thereafter | 5,358 | |
Total expected amortization expense | $ 23,060 | $ 32,131 |
Taxation (Components of Income
Taxation (Components of Income before Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income /(loss) before income tax expense | ||||
Income /(loss) from China operations | $ (75,893) | $ (88,440) | $ 171,636 | |
Income /(loss) from non-China operations | (120,962) | (5,461) | 14,155 | |
Total income /(loss) before income tax expense | (196,855) | (93,901) | 185,791 | |
Income tax expense applicable to China operations | ||||
Current tax | 57,413 | 13,635 | 55,532 | |
Deferred tax | 380 | 8,500 | 8,735 | |
Subtotal income tax expense applicable to China operations | 57,793 | 22,135 | 64,267 | |
Non China income tax expense/(benefit) | 214,737 | (2,134) | 11,291 | |
Non China withholding tax expense | 618 | 1,071 | 1,378 | |
Total income tax expense | $ 273,148 | $ 21,072 | $ 76,936 | |
One-time transition tax | $ 218,500 | |||
Deferred tax liability reduction for tax reform | $ 3,700 |
Taxation (Tax Holiday Effect) (
Taxation (Tax Holiday Effect) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
TAXATION [Abstract] | |||
Tax holiday effect | $ 17,736 | $ 30,872 | $ 19,626 |
Basic net income per share effect | $ 0.46 | $ 0.80 | $ 0.51 |
Taxation (Effective Tax Rate) (
Taxation (Effective Tax Rate) (Details) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Taxation [Line Items] | ||||
U.S. federal statutory rate: | 35.00% | 35.00% | 35.00% | |
Effect of tax holidays applicable to subsidiaries and consolidated VIEs | [1] | 9.00% | 33.00% | (11.00%) |
Tax differential from statutory rate applicable to the subsidiaries and the consolidated VIEs | (11.00%) | (3.00%) | (13.00%) | |
Effect of withholding taxes | (2.00%) | (4.00%) | 2.00% | |
Changes in valuation allowance for deferred tax assets | (57.00%) | (91.00%) | 31.00% | |
Others | (2.00%) | 8.00% | (3.00%) | |
Effective Tax Rate | (28.00%) | (22.00%) | 41.00% | |
Thereafter tax years [Member] | ||||
Taxation [Line Items] | ||||
U.S. federal statutory rate: | 21.00% | |||
Prior tax years [Member] | ||||
Taxation [Line Items] | ||||
U.S. federal statutory rate: | 35.00% | |||
[1] | The reversal of income tax for preferential income tax rates that Changyou's and Sogou's subsidiaries and VIEs were entitled to as KNSEs or Software Enterprises for 2015, 2016 and 2017 was included in the "Effect of tax holidays applicable to subsidiaries and consolidated VIEs" in the above table. |
Taxation (PRC Corporate Income
Taxation (PRC Corporate Income Tax) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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% |
Income tax exemption period beginning with first profitable year | 2 years |
Tax rate reduction rate | 50.00% |
Software Enterprise [Member] | Sohu New Momentum [Member] | |
Income Tax and Tax Rate [Line Items] | |
Preferential income tax rate | 12.50% |
Key National Software Enterprise [Member] | |
Income Tax and Tax Rate [Line Items] | |
Preferential income tax rate | 10.00% |
Key National Software Enterprise [Member] | Sogou Technology [Member] | |
Income Tax and Tax Rate [Line Items] | |
Preferential income tax rate | 10.00% |
Key National Software Enterprise [Member] | AmazGame [Member] | |
Income Tax and Tax Rate [Line Items] | |
Preferential income tax rate | 10.00% |
Taxation (PRC Withholding Tax o
Taxation (PRC Withholding Tax on Dividends) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Withholding tax on dividends [Line Items] | ||
Withholding income tax rate on dividends, foreign invested enterprises to foreign holding companies | 10.00% | |
Deferred tax liabilities related to withholding tax | $ 30,992 | $ 26,002 |
HONG KONG | ||
Withholding tax on dividends [Line Items] | ||
Preferential withholding tax rate on dividends, foreign invested enterprises | 5.00% |
Taxation (PRC Value-Added Tax a
Taxation (PRC Value-Added Tax and U.S. Corporate Income Tax) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Value added tax and income tax [Line Items] | |||
Value-added tax rate | 6.00% | ||
U.S. corporate income tax rate | 35.00% | 35.00% | 35.00% |
Income tax liability deduction percentage | 50.00% | ||
Thereafter tax years [Member] | |||
Value added tax and income tax [Line Items] | |||
U.S. corporate income tax rate | 21.00% | ||
Prior tax years [Member] | |||
Value added tax and income tax [Line Items] | |||
U.S. corporate income tax rate | 35.00% | ||
State Administration of Taxation, China [Member] | |||
Value added tax and income tax [Line Items] | |||
Value-added tax rate | 6.00% |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||||
Net operating loss from operations | $ 245,534 | $ 206,967 | ||
Accrued bonus and commissions | 25,164 | 22,069 | ||
Intangible assets transfer | 538 | 746 | ||
Others | 10,307 | 7,525 | ||
Total deferred tax assets | 281,543 | 237,307 | ||
Less: Valuation allowance | (256,347) | (216,176) | $ (146,930) | $ (110,788) |
Net deferred tax assets | 25,196 | 21,131 | ||
Deferred tax liabilities | ||||
Withholding tax for Dividend | (30,992) | (26,002) | ||
Deferred U.S. tax | (5,498) | (9,175) | ||
Intangible assets from business acquisitions | (1,247) | (1,273) | ||
Others | (5,655) | (3,334) | ||
Total deferred tax liabilities | $ (43,392) | $ (39,784) |
Taxation (Deferred Tax Assets88
Taxation (Deferred Tax Assets and Liabilities, Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
TAXATION [Abstract] | ||
Net operating losses from PRC entities available to offset against future net profit for income tax purposes | $ 962.6 | $ 962.6 |
Deferred tax assets generated from net operating losses offset by valuation allowance | 238.4 | 238.4 |
PRC net operating losses generated from previous years, expired | $ 63.8 | |
One-time transition tax | 218.5 | |
Deferred tax liability reduction for tax reform | $ 3.7 |
Taxation (Movement of Valuation
Taxation (Movement of Valuation Allowance for Net Deferred Tax Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
TAXATION [Abstract] | |||
Beiginning balance | $ 216,176 | $ 146,930 | $ 110,788 |
Provision for the year | 66,090 | 89,603 | 71,991 |
Reversal for the year | (39,004) | (10,952) | (30,549) |
Foreign currency translation adjustment | 13,085 | (9,405) | (5,300) |
Ending balance | $ 256,347 | $ 216,176 | $ 146,930 |
Taxation (Uncertain Tax Positio
Taxation (Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
TAXATION [Abstract] | |||
Beginning balance | $ 32,682 | $ 39,244 | $ 24,515 |
Decreases related to prior year tax positions | (1,544) | (6,649) | 0 |
Increases related to current year tax positions | 0 | 87 | 14,729 |
Ending balance | 31,138 | $ 32,682 | $ 39,244 |
Increases related to certain prior years uncertain tax positions | 2,400 | ||
Payment to PRC tax authorities for a portion of an uncertain tax position | $ 5,300 |
Commitments and Contingencies91
Commitments and Contingencies (Contractual Obligation) (Details) $ in Thousands | Dec. 31, 2017USD ($) | |
Contractual Obligation [Line Items] | ||
2,018 | $ 226,049 | |
2,019 | 84,418 | |
2,020 | 32,860 | |
2,021 | 9,274 | |
2,022 | 1,366 | |
Thereafter | 1,311 | |
Total Payments Required | 355,278 | |
Purchase of cinema advertisement slot rights [Member] | ||
Contractual Obligation [Line Items] | ||
2,018 | 67,942 | |
2,019 | 52,508 | |
2,020 | 26,524 | |
2,021 | 8,249 | |
2,022 | 1,305 | |
Thereafter | 1,301 | |
Total Payments Required | 157,829 | |
Purchase of bandwidth [Member] | ||
Contractual Obligation [Line Items] | ||
2,018 | 67,827 | |
2,019 | 1,398 | |
2,020 | 1,196 | |
2,021 | 327 | |
2,022 | 0 | |
Thereafter | 0 | |
Total Payments Required | 70,748 | |
Purchase of content and services - video [Member] | ||
Contractual Obligation [Line Items] | ||
2,018 | 38,224 | |
2,019 | 19,007 | |
2,020 | 1,134 | |
2,021 | 0 | |
2,022 | 0 | |
Thereafter | 0 | |
Total Payments Required | 58,365 | |
Operating lease obligations [Member] | ||
Contractual Obligation [Line Items] | ||
2,018 | 18,025 | [1] |
2,019 | 9,118 | [1] |
2,020 | 3,842 | [1] |
2,021 | 666 | [1] |
2,022 | 61 | [1] |
Thereafter | 10 | [1] |
Total Payments Required | 31,722 | [1] |
Expenditures for operating rights for licensed games with technological feasibility [Member] | ||
Contractual Obligation [Line Items] | ||
2,018 | 19,844 | |
2,019 | 1,039 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
Thereafter | 0 | |
Total Payments Required | 20,883 | |
Purchase of content and services -others [Member] | ||
Contractual Obligation [Line Items] | ||
2,018 | 7,019 | |
2,019 | 971 | |
2,020 | 77 | |
2,021 | 32 | |
2,022 | 0 | |
Thereafter | 0 | |
Total Payments Required | 8,099 | |
Fees for operating rights for licensed games in development [Member] | ||
Contractual Obligation [Line Items] | ||
2,018 | 2,447 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
Thereafter | 0 | |
Total Payments Required | 2,447 | |
Others [Member] | ||
Contractual Obligation [Line Items] | ||
2,018 | 4,721 | |
2,019 | 377 | |
2,020 | 87 | |
2,021 | 0 | |
2,022 | 0 | |
Thereafter | 0 | |
Total Payments Required | $ 5,185 | |
[1] | For the years ended December 31, 2017, 2016 and 2015, rental expense included in the operating lease was approximately $23.9 million, $23.9 million, and $27.9 million, respectively. |
Commitments and Contingencies92
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |||
Rental expense included in operating lease | $ 23.9 | $ 23.9 | $ 27.9 |
Estimated liabilities as component of accrued and other short-term liabilities | $ 3.8 |
VIEs (VIEs Consolidated within
VIEs (VIEs Consolidated within Sohu Group, Basic Information for Principal VIEs) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Oct. 31, 2016 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | ||
Aggregate amount of loans due from related parties | $ 9.4 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital and PRC statutory reserves | 80.6 | |
High Century [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 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% | |
Heng Da Yi Tong [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 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% | |
Sohu Internet [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 1.6 | |
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 | |
Donglin [Member] | Sohu Internet [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Tianjin Jinhu [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 0.5 | |
Tianjin Jinhu [Member] | Ye Deng [Member] | ||
Variable Interest Entity [Line Items] | ||
Transferred equity interest to new shareholders | 50.00% | |
Tianjin Jinhu [Member] | Xiufeng 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 | |
Guangzhou Qianjun [Member] | Tianjin Jinhu [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Focus Interactive [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 1.6 | |
Focus Interactive [Member] | Heng Da Yi Tong [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Sogou Information [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 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 Holdings Limited [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 45.00% | |
Gamease [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 1.3 | |
Gamease [Member] | High Century [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Shanghai ICE [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 1.2 | |
Shanghai ICE [Member] | Gamease [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Guanyou Gamespace [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 1.5 | |
Guanyou Gamespace [Member] | Changyou Star [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Wuhan Baina Information [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 3 | |
Wuhan Baina Information [Member] | Changyou Star [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 60.00% | |
Wuhan Baina Information [Member] | Yongzhi Yang [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 40.00% |
VIEs (VIEs Consolidated withi94
VIEs (VIEs Consolidated within Sohu Group, Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
ASSETS: | ||||
Cash and cash equivalents | $ 1,364,096 | $ 1,050,957 | $ 1,245,205 | $ 876,340 |
Accounts receivable, net | 250,468 | 189,167 | 273,617 | |
Prepaid and other current assets | 192,675 | 260,133 | ||
Assets held for sale | 0 | 103,079 | ||
Short-term investments | 818,934 | 247,926 | ||
Long-term investments, net | 90,145 | 74,273 | ||
Fixed assets, net | 529,717 | 503,631 | ||
Intangible assets, net | 23,060 | 32,131 | ||
Goodwill | 71,565 | 68,290 | 154,219 | |
Other non-current assets | 40,169 | 29,100 | ||
LIABILITIES: | ||||
Accounts payable | 288,394 | 193,209 | ||
Accrued liabilities | 343,106 | 324,876 | ||
Receipts in advance and deferred revenue | 127,758 | 118,951 | ||
Liabilities held for sale | 0 | 3,902 | ||
Long-term taxes payable | 249,618 | 32,625 | ||
Long-term bank loans | 122,433 | 0 | ||
Deferred tax liabilities | 43,392 | 39,784 | ||
Net revenue | 1,860,962 | 1,650,431 | 1,937,091 | |
Net income /(loss) | (470,003) | (114,973) | 108,855 | |
Net cash provided by /(used in) operating activities | 183,783 | 239,620 | 506,053 | |
Net cash provided by /(used in) investing activities | (714,503) | (50,739) | (69,767) | |
Net cash provided by financing activities | 801,975 | (327,934) | (43,116) | |
Consolidated VIEs [Member] | ||||
ASSETS: | ||||
Cash and cash equivalents | 43,618 | 94,859 | ||
Accounts receivable, net | 95,305 | 72,151 | ||
Prepaid and other current assets | 26,755 | 86,722 | ||
Assets held for sale | 0 | 12,551 | ||
Short-term investments | 12,303 | 0 | ||
Intra-Group receivables due from the Company's subsidiaries | 398,135 | 197,438 | ||
Total current assets | 576,116 | 463,721 | ||
Long-term investments, net | 32,266 | 17,472 | ||
Fixed assets, net | 2,414 | 4,372 | ||
Intangible assets, net | 11,719 | 14,545 | ||
Goodwill | 37,291 | 35,161 | ||
Other non-current assets | 2,614 | 4,052 | ||
Total assets | 662,420 | 539,323 | ||
LIABILITIES: | ||||
Accounts payable | 53,842 | 15,824 | ||
Accrued liabilities | 76,883 | 96,695 | ||
Receipts in advance and deferred revenue | 46,939 | 44,797 | ||
Liabilities held for sale | 0 | 3,232 | ||
Other current liabilities | 97,991 | 111,775 | ||
Intra-Group payables due to the Company's subsidiaries | 197,367 | 129,431 | ||
Total current liabilities | 473,022 | 401,754 | ||
Long-term taxes payable | 14,293 | 13,463 | ||
Long-term bank loans | 1,530 | 0 | ||
Deferred tax liabilities | 3,451 | 1,273 | ||
Intra-Group payables due to the Company's subsidiaries | 19,030 | 19,620 | ||
Total liabilities | 511,326 | 436,110 | ||
Net revenue | 881,284 | 894,697 | 1,181,354 | |
Net income /(loss) | 34,910 | 9,557 | (78,722) | |
Net cash provided by /(used in) operating activities | (52,351) | (17,804) | 38,627 | |
Net cash provided by /(used in) investing activities | (14,020) | (2,273) | 55,108 | |
Net cash provided by financing activities | $ (131) | $ 0 | $ 2,855 |
VIEs (VIEs Consolidated withi95
VIEs (VIEs Consolidated within Sohu Group, Summary of Significant Agreements Currently in Effect) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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 $0.15) or the lowest purchase price permissible under PRC law |
Sohu Internet [Member] | Sohu Era [Member] | |
Variable Interest Entity [Line Items] | |
Exclusive technology consulting and service agreement term | 2 years |
Sohu.com Inc. Shareholders' E96
Sohu.com Inc. Shareholders' Equity (Summary of Sohu.com Inc.'s Outstanding Shares) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Common stock: | |||
Balance, beginning of year | 38,742 | 38,653 | 38,507 |
Issuance of common stock | 156 | 89 | 146 |
Balance, end of year | 38,898 | 38,742 | 38,653 |
Sohu.com Inc. Shareholders' E97
Sohu.com Inc. Shareholders' Equity (Treasury Stock) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Sohu.com Inc. [Member] | Common Stock [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased | 0 | 0 | 0 |
Sohu.com Inc. Shareholders' E98
Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Narrative) (Details) - Sohu 2010 Stock Incentive Plan [Member] - shares | 12 Months Ended | |
Dec. 31, 2017 | Jul. 02, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Plan expiration date | Jul. 1, 2020 | |
Shares available for grant | 585,280 | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum term of share rights granted under share incentive plan | 10 years | |
Common Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance | 1,500,000 |
Sohu.com Inc. Shareholders' E99
Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Stock Option Activity, Narrative) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 01, 2017 | Sep. 01, 2017 | May 01, 2016 | Feb. 01, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 45,477,000 | $ 19,120,000 | $ 53,443,000 | |||||
Total fair values of share options vested | 0 | |||||||
Sohu 2010 Stock Incentive Plan [Member] | Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of options granted in period | 431,500 | 178,000 | ||||||
Number of share options vested | 431,500 | |||||||
Total fair value of stock options granted | $ 17,900,000 | |||||||
Share-based compensation expense | 2,400,000 | 1,400,000 | 25,600,000 | |||||
Total intrinsic value of share options exercised | $ 6,100,000 | 2,500,000 | 0 | |||||
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 shares under contractually granted share options | 6,000 | 32,000 | 13,000 | 1,068,000 | ||||
Exercise prices of option granted | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Installments of share options granted | Four equal installments | |||||||
Award vesting period | 4 years | |||||||
Total fair values of share options vested | $ 7,100,000 | $ 10,800,000 | $ 0 |
Sohu.com Inc. Shareholders' 100
Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Stock Option Activity) (Details) - Sohu 2010 Stock Incentive Plan [Member] - Stock Options [Member] $ / shares in Units, $ in Thousands | Dec. 31, 2017USD ($)Years$ / sharesshares | Dec. 31, 2017USD ($)Years$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares, Outstanding, Beginning Balance | 193,000 | |||
Number of Shares, Granted | 431,500 | 178,000 | ||
Number of Shares, Exercised | (148,000) | |||
Number of Shares, Forfeited or expired | 0 | |||
Number of Shares, Outstanding, Ending Balance | 223,000 | 223,000 | ||
Number of Shares, Vested, Ending balance | 223,000 | 223,000 | ||
Number of Shares, Exercisable, Ending balance | 223,000 | 223,000 | ||
Weighted Average Exercise Price, Granted | $ / shares | $ 0.001 | |||
Weighted Average Exercise Price, Exercised | $ / shares | 0.001 | |||
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares | $ 0.001 | 0.001 | ||
Weighted Average Exercise Price, Vested, Ending balance | $ / shares | 0.001 | 0.001 | ||
Weighted Average Exercise Price, Exercisable, Ending balance | $ / shares | $ 0.001 | $ 0.001 | ||
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | Years | 7.11 | 7.11 | ||
Weighted Average Remaining Contractual Life (Years), Vested, Ending balance | Years | 7.11 | 7.11 | ||
Weighted Average Remaining Contractual Life (Years), Exercisable, Ending balance | Years | 7.11 | 7.11 | ||
Aggregate Intrinsic Value, Outstanding, Ending balance | $ | $ 10,160 | [1] | $ 10,160 | [1] |
Aggregate Intrinsic Value, Vested, Ending balance | $ | 10,160 | [1] | 10,160 | [1] |
Aggregate Intrinsic Value, Exercisable, Ending balance | $ | $ 10,160 | [1] | $ 10,160 | [1] |
Closing stock price | $ / shares | $ 45.58 | $ 45.58 | ||
[1] | The aggregated intrinsic value in the preceding table represents the difference between Sohu's closing stock price of $45.58 on December 31, 2017 and the nominal exercise prices of the stock options. |
Sohu.com Inc. Shareholders' 101
Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Restricted Share Unit Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 45,477,000 | $ 19,120,000 | $ 53,443,000 |
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 | 11 | ||
Number of Units, Granted | 0 | ||
Number of Units, Vested | (5) | ||
Number of Units, Forfeited | (5) | ||
Number of Units, Unvested, Ending balance | 1 | 11 | |
Number of Units, Expected to vest thereafter | 1 | ||
Weighted-Average Grant-Date Fair Value, Unvested, Beginning balance | $ 73.32 | ||
Weighted-Average Grant-Date Fair Value, Granted | 0 | ||
Weighted-Average Grant-Date Fair Value, Vested | 75.06 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 71.85 | ||
Weighted-Average Grant-Date Fair Value, Unvested, Ending balance | 72.92 | $ 73.32 | |
Weighted-Average Grant-Date Fair Value, Expected to vest thereafter | $ 72.92 | ||
Share-based compensation expense | $ 1,700,000 | $ 1,300,000 | 2,200,000 |
Unrecognized compensation expenses | 0 | ||
Fair value of restricted share units vested | $ 300,000 | $ 900,000 | $ 1,600,000 |
Sohu.com Inc. Shareholders' 102
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 22, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 45,477 | $ 19,120 | $ 53,443 | ||
Total fair values of share options vested | 0 | ||||
Sogou [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | [1] | $ 27,729 | $ 8,802 | 10,310 | |
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Plan expiration date | Oct. 19, 2020 | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum term of share rights granted under share incentive plan | 10 years | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Share Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares outstanding | 9,753,000 | 9,451,000 | |||
Share-based compensation expense | $ 23,000 | $ 7,600 | 7,300 | ||
Unrecognized compensation expenses | $ 8,700 | ||||
Unrecognized compensation expenses, weighted average period for recognition (in years) | 10 months 2 days | ||||
Total intrinsic value of share options exercised | $ 11,100 | 15,200 | 13,800 | ||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for issuance | 41,500,000 | ||||
Number of shares under contractually granted share options | 39,798,377 | ||||
Number of shares purchased on granted options | 34,916,405 | ||||
Number of shares outstanding | 9,753,032 | ||||
Total fair values of share options vested | $ 21,700 | $ 9,700 | $ 14,600 | ||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share 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 shares under contractually granted share options | 32,548,377 | ||||
Number of shares purchased on granted options | 27,666,405 | ||||
Number of shares purchased under vested and exercisable options | 26,800,559 | ||||
Number of shares purchased on exercised options | 25,163,373 | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | Vesting upon Service Period and Achievement of Performance Targets, Part One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares under contractually granted share options | 31,463,750 | ||||
Installments of share options granted | Four equal installments | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | Vesting upon Service Period and Achievement of Performance Targets, Part Two [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares under contractually granted share options | 1,084,627 | ||||
Installments of share options granted | Two to four installments | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | Vesting upon Completion of Sogou's IPO [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares under contractually granted share options | 7,250,000 | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | Vesting upon Expiration of All Underwriters' Lockup Periods [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares under contractually granted share options | 7,200,000 | ||||
Installments of share options granted | Four equal installments | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | Vesting upon First Anniversary of Grant Date [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares under contractually granted share options | 5,000 | ||||
[1] | Compensation expense for Sogou share-based awards also includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search and search-related businesses and compensation expense of $4.0 million, recognized in the first quarter of 2017 in connection with Sogou's repurchase of Sogou Pre-IPO Class A Ordinary Shares from the former President and Chief Financial Officer of the Sohu Group, which is equal to the excess of the repurchase price over the fair value of the Sogou Pre-IPO Class A Ordinary Shares as of the repurchase date. |
Sohu.com Inc. Shareholders' 103
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Option Activity) (Details) - Sogou [Member] - Sogou 2010 Share Incentive Plan [Member] - Share Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Years$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | shares | 9,451 | |
Number of Shares, Granted | shares | 2,496 | |
Number of Shares, Exercised | shares | (2,168) | |
Number of Shares, Forfeited or expired | shares | (26) | |
Number of Shares, Outstanding, Ending Balance | shares | 9,753 | |
Number of Shares, Vested, Ending balance, and expected to vest thereafter | shares | 9,694 | |
Number of Shares, Exercisable, Ending balance | shares | 1,637 | |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 0.476 | |
Weighted Average Exercise Price, Granted | 0.001 | |
Weighted Average Exercise Price, Exercised | 0.001 | |
Weighted Average Exercise Price, Forfeited or expired | 0.001 | |
Weighted Average Exercise Price, Outstanding, Ending balance | 0.462 | |
Weighted Average Exercise Price, Vested and expected to vest thereafter, Ending balance | 0.464 | |
Weighted Average Exercise Price, Exercisable, Ending balance | $ 0.001 | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Beginning balance | Years | 6.31 | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | Years | 5.56 | |
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest thereafter, Ending balance | Years | 5.54 | |
Weighted Average Remaining Contractual Life (Years), Exercisable, Ending balance | Years | 5.68 | |
Aggregate Intrinsic Value, Outstanding, Ending balance | $ | [1] | $ 108,340 |
Aggregate Intrinsic Value, Vested and expected to vest thereafter, Ending balance | $ | [1] | 107,660 |
Aggregate Intrinsic Value, Exercisable, Ending balance | $ | [1] | $ 18,941 |
Closing stock price | $ 11.57 | |
[1] | The aggregate intrinsic value in the preceding table represents the difference between Sogou's closing price of $11.57 per Class A ordinary share on December 31, 2017 and the nominal exercise prices of the share options. |
Sohu.com Inc. Shareholders' 104
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Option Assumptions) (Details) - Sogou [Member] - Sogou 2010 Share Incentive Plan [Member] - Share Options [Member] | 12 Months Ended | ||
Dec. 31, 2017$ / shares | Dec. 31, 2016$ / shares | Dec. 31, 2015$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average expected option life | 7 years | 7 years | 8 years |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted average fair value of share options | $ 10.35 | $ 3.26 | $ 3.58 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 2.14% | 1.90% | 2.48% |
Exercise multiple | 2 | 2 | 2 |
Expected forfeiture rate (post-vesting) | 0.00% | 0.00% | 1.00% |
Volatility rate | 39.00% | 43.00% | 47.00% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 3.00% | 2.77% | 2.77% |
Exercise multiple | 3 | 3 | 3 |
Expected forfeiture rate (post-vesting) | 12.00% | 12.00% | 12.00% |
Volatility rate | 47.00% | 50.00% | 51.00% |
Sohu.com Inc. Shareholders' 105
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Option Assumptions, Narrative) (Details) - Sogou [Member] - Sogou 2010 Share Incentive Plan [Member] - Share Options [Member] | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated dividend yield | 0.00% | 0.00% | 0.00% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 2 | 2 | 2 |
Estimated forfeiture rate | 0.00% | 0.00% | 1.00% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 3 | 3 | 3 |
Estimated forfeiture rate | 12.00% | 12.00% | 12.00% |
Management [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 3 | ||
Management [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated forfeiture rate | 0.00% | ||
Management [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated forfeiture rate | 1.00% | ||
Key employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 2 | ||
Estimated forfeiture rate | 12.00% |
Sohu.com Inc. Shareholders' 106
Sohu.com Inc. Shareholders' Equity (Sogou 2017 Share Incentive Plan) (Details) - Sogou [Member] - Sogou 2017 Share Incentive Plan [Member] - Class A Ordinary Shares [Member] - Share Options [Member] - shares | 12 Months Ended | |
Dec. 31, 2017 | Oct. 01, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares for issuance | 28,000,000 | |
Number of shares under contractually granted share options | 0 | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum term of share incentive award granted under share incentive plan | 10 years |
Sohu.com Inc. Shareholders' 107
Sohu.com Inc. Shareholders' Equity (Sohu Management Sogou Share Option Arrangement, Narrative) (Details) - USD ($) | Apr. 14, 2011 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 45,477,000 | $ 19,120,000 | $ 53,443,000 | |||
Total fair values of share options vested | 0 | |||||
Sogou [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | [1] | $ 27,729,000 | $ 8,802,000 | 10,310,000 | ||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Share Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares outstanding | 9,000 | 70,000 | ||||
Share-based compensation expense | $ 0 | $ 400,000 | 1,000,000 | |||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Class A Ordinary Shares [Member] | Share Options [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 | |||||
Number of shares under contractually granted share options | 8,305,000 | |||||
Number of shares purchased on granted options | 8,305,000 | |||||
Number of shares outstanding | 9,000 | |||||
Unrecognized compensation expenses | $ 0 | |||||
Total fair values of share options vested | 0 | 500,000 | 2,600,000 | |||
Total intrinsic value of share options exercised | $ 200,000 | $ 4,500,000 | $ 1,800,000 | |||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Class A Ordinary Shares [Member] | Share 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 shares under contractually granted share options | 8,290,000 | |||||
Installments of share options granted | Four equal installments | |||||
Number of shares purchased on granted options | 8,290,000 | |||||
Number of shares purchased under vested and exercisable options | 8,290,000 | |||||
Number of shares purchased on exercised options | 8,290,000 | |||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | Vesting upon Service Period [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Installments of share options granted | Four equal installments | |||||
Number of shares purchased on granted options | 15,000 | |||||
Number of shares purchased on exercised options | 6,000 | |||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Class A Ordinary Shares [Member] | Minimum [Member] | Share Options [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] | Class A Ordinary Shares [Member] | Maximum [Member] | Share Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fixed exercise price of ordinary share | $ 0.625 | |||||
[1] | Compensation expense for Sogou share-based awards also includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search and search-related businesses and compensation expense of $4.0 million, recognized in the first quarter of 2017 in connection with Sogou's repurchase of Sogou Pre-IPO Class A Ordinary Shares from the former President and Chief Financial Officer of the Sohu Group, which is equal to the excess of the repurchase price over the fair value of the Sogou Pre-IPO Class A Ordinary Shares as of the repurchase date. |
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] - Share Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Years$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | 70 | |
Number of Shares, Granted | 0 | |
Number of Shares, Exercised | (61) | |
Number of Shares, Forfeited or expired | 0 | |
Number of Shares, Outstanding, Ending Balance | 9 | |
Number of Shares, Vested, Ending balance, and expected to vest thereafter | 9 | |
Number of Shares, Exercisable, Ending balance | 9 | |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares | $ 0.517 | |
Weighted Average Exercise Price, Forfeited or expired | $ / shares | 0.594 | |
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares | 0.001 | |
Weighted Average Exercise Price, Vested and expected to vest thereafter, Ending balance | $ / shares | 0.001 | |
Weighted Average Exercise Price, Exercisable, Ending balance | $ / shares | $ 0.001 | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Beginning balance | Years | 6.79 | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | Years | 7.38 | |
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest thereafter, Ending balance | Years | 7.38 | |
Weighted Average Remaining Contractual Life (Years), Exercisable, Ending balance | Years | 7.38 | |
Aggregate Intrinsic Value, Outstanding, Ending balance | $ | [1] | $ 104 |
Aggregate Intrinsic Value, Vested and expected to vest thereafter, Ending balance | $ | [1] | 104 |
Aggregate Intrinsic Value, Exercisable, Ending balance | $ | [1] | $ 104 |
Closing stock price | $ / shares | $ 11.57 | |
[1] | The aggregate intrinsic value in the preceding table represents the difference between Sogou's closing price of $11.57 per Class A ordinary share on December 31, 2017 and the nominal exercise prices of the share options. |
Sohu.com Inc. Shareholders' 109
Sohu.com Inc. Shareholders' Equity (Sohu Management Sogou Share Option Arrangement, Share Option Assumptions) (Details) - Sogou [Member] - Sohu Management Sogou Share Option Arrangement [Member] - Share Options [Member] | 12 Months Ended | |
Dec. 31, 2016$ / shares | Dec. 31, 2015$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected forfeiture rate (post-vesting) | 0.00% | |
Weighted average expected option life | 6 years | 6 years |
Dividend yield | 0.00% | 0.00% |
Weighted average fair value of share options | $ 3.02 | $ 5.54 |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average risk-free interest rate | 2.01% | 2.43% |
Exercise multiple | 2 | 2 |
Expected forfeiture rate (post-vesting) | 0.00% | |
Volatility rate | 43.00% | 46.00% |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average risk-free interest rate | 2.15% | 2.67% |
Exercise multiple | 3 | 3 |
Expected forfeiture rate (post-vesting) | 8.00% | |
Volatility rate | 47.00% | 50.00% |
Sohu.com Inc. Shareholders' 110
Sohu.com Inc. Shareholders' Equity (Sogou Inc. Share-based Awards, Option Modification) (Details) - Sogou [Member] - Class A Ordinary Shares [Member] - Share Options [Member] | 12 Months Ended |
Dec. 31, 2017USD ($)shares | |
Sogou 2010 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Incremental fair value | $ 0 |
Number of shares purchased on early exercised options | shares | 10,327,500 |
Sohu Management Sogou Share Option Arrangement [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Incremental fair value | $ 0 |
Sohu.com Inc. Shareholders' 111
Sohu.com Inc. Shareholders' Equity (Sohu Management Sogou Share Option Arrangement, Share Repurchase Transaction) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Incremental share-based compensation expense | $ 45,477 | $ 19,120 | $ 53,443 | ||
Sogou [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Incremental share-based compensation expense | [1] | $ 27,729 | $ 8,802 | $ 10,310 | |
Sogou [Member] | Pre-IPO [Member] | Former President and CFO of Sohu Group [Member] | Class A Ordinary Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate repurchased shares | 720,000 | ||||
Aggregate price of repurchased shares | $ 7,200 | ||||
Incremental share-based compensation expense | $ 4,000 | $ 4,000 | |||
[1] | Compensation expense for Sogou share-based awards also includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search and search-related businesses and compensation expense of $4.0 million, recognized in the first quarter of 2017 in connection with Sogou's repurchase of Sogou Pre-IPO Class A Ordinary Shares from the former President and Chief Financial Officer of the Sohu Group, which is equal to the excess of the repurchase price over the fair value of the Sogou Pre-IPO Class A Ordinary Shares as of the repurchase date. |
Sohu.com Inc. Shareholders' 112
Sohu.com Inc. Shareholders' Equity (Tencent Share-based Awards Granted to Employees Who Transferred to Sogou with Soso Search-related Businesses) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 45,477,000 | $ 19,120,000 | $ 53,443,000 | |
Sogou [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | [1] | 27,729,000 | 8,802,000 | 10,310,000 |
Sogou [Member] | Tencent Holdings Limited [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 | 700,000 | $ 800,000 | $ 2,000,000 | |
Unrecognized compensation expenses | $ 58,327 | |||
Unrecognized compensation expenses, weighted average period for recognition (in years) | 6 months 4 days | |||
[1] | Compensation expense for Sogou share-based awards also includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search and search-related businesses and compensation expense of $4.0 million, recognized in the first quarter of 2017 in connection with Sogou's repurchase of Sogou Pre-IPO Class A Ordinary Shares from the former President and Chief Financial Officer of the Sohu Group, which is equal to the excess of the repurchase price over the fair value of the Sogou Pre-IPO Class A Ordinary Shares as of the repurchase date. |
Sohu.com Inc. Shareholders' 113
Sohu.com Inc. Shareholders' Equity (Changyou's 2008 Share Incentive Plan) (Details) - Changyou [Member] - Changyou's 2008 Share Incentive Plan [Member] - Ordinary Shares [Member] | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2009shares | Dec. 31, 2017shares | Dec. 31, 2008shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for future issuance | 2,000,000 | ||
Shares reserved for future issuance as result of stock split | 20,000,000 | ||
Stock split, conversion ratio | 10 | ||
Award vesting period | 4 years | ||
Plan expiration date | Aug. 31, 2018 | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum term of share rights granted under share incentive plan | 10 years | ||
Ordinary Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 15,000,000 | ||
Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 4,614,098 |
Sohu.com Inc. Shareholders' 114
Sohu.com Inc. Shareholders' Equity (Share-based Awards Granted before Changyou's IPO, Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 45,477,000 | $ 19,120,000 | $ 53,443,000 |
Changyou [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 17,394,000 | $ 8,402,000 | $ 15,024,000 |
Changyou [Member] | Changyou's Share-based Awards Granted before IPO [Member] | Ordinary Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 0 | ||
Changyou [Member] | Changyou's Share-based Awards Granted before IPO [Member] | Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 0 |
Sohu.com Inc. Shareholders' 115
Sohu.com Inc. Shareholders' Equity (Share-based Awards Granted after Changyou's IPO, Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 45,477,000 | $ 19,120,000 | $ 53,443,000 |
Changyou [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 17,394,000 | 8,402,000 | 15,024,000 |
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] | |||
Share-based compensation expense | 2,200 | 100,000 | (200,000) |
Unrecognized compensation expenses | 0 | ||
Fair value of restricted share units vested | $ 200,000 | $ 100,000 | $ 1,100,000 |
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 | ||
Award vesting period | 4 years |
Sohu.com Inc. Shareholders' 116
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, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Units, Unvested, Beginning balance | 10 |
Number of Units, Granted | 0 |
Number of Units, Vested | (10) |
Number of Units, Forfeited | 0 |
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 | $ 14.25 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | $ 14.25 |
Sohu.com Inc. Shareholders' 117
Sohu.com Inc. Shareholders' Equity (Changyou 2014 Share Incentive Plan, Narrative) (Details) - USD ($) | 12 Months Ended | |||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 28, 2016 | Jun. 01, 2015 | Feb. 16, 2015 | Nov. 02, 2014 | Jun. 27, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 45,477,000 | $ 19,120,000 | $ 53,443,000 | |||||
Total fair values of share options vested | 0 | |||||||
Changyou [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 17,394,000 | 8,402,000 | 15,024,000 | |||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Plan expiration date | Jun. 30, 2024 | |||||||
Shares available for grant | 2,988,000 | |||||||
Installments of share options granted | Four equal installments | |||||||
Award vesting period | 4 years | |||||||
Number of share options vested | 1,999,000 | |||||||
Cumulative share-based compensation expense | $ 28,600,000 | |||||||
Share-based compensation expense | 17,400,000 | 8,300,000 | 15,200,000 | |||||
Total fair values of share options vested | 14,800,000 | 9,100,000 | 4,700,000 | |||||
Total intrinsic value of share options exercised | $ 10,300,000 | $ 4,300,000 | $ 0 | |||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Maximum term of share rights granted under share incentive plan | 10 years | |||||||
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 | ||||||
Number of shares or units granted | 100,000 | 1,998,000 | ||||||
Exercise prices of option granted | $ 0.01 | $ 0.01 | ||||||
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] | ||||||||
Number of shares or units granted | 2,416,000 | |||||||
Number of Class A restricted share units converted to options | 2,400,000 | |||||||
Exercise prices of option granted | $ 0.01 |
Sohu.com Inc. Shareholders' 118
Sohu.com Inc. Shareholders' Equity (Changyou 2014 Share Incentive Plan, Share Option Activity) (Details) - Changyou [Member] - Changyou 2014 Share Incentive Plan [Member] - Share Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Years$ / sharesshares | ||
Class A Ordinary Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | shares | 852 | |
Number of Shares, Granted | shares | 770 | |
Number of Shares, Exercised | shares | (675) | |
Number of Shares, Forfeited or expired | shares | 0 | |
Number of Shares, Outstanding, Ending Balance | shares | 947 | |
Number of Shares, Vested, Ending balance | shares | 947 | |
Number of Shares, Exercisable, Ending balance | shares | 947 | |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 0.01 | |
Weighted Average Exercise Price, Granted | 0.01 | |
Weighted Average Exercise Price, Exercised | 0.01 | |
Weighted Average Exercise Price, Outstanding, Ending balance | 0.01 | |
Weighted Average Exercise Price, Vested, Ending balance | 0.01 | |
Weighted Average Exercise Price, Exercisable, Ending balance | $ 0.01 | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Beginning balance | Years | 7.93 | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | Years | 7.01 | |
Aggregate Intrinsic Value, Outstanding, Beginning balance | $ | [1] | $ 9,032 |
Aggregate Intrinsic Value, Outstanding, Ending balance | $ | [1] | 17,240 |
Aggregate Intrinsic Value, Vested, Ending balance | $ | [1] | $ 17,240 |
Closing price | $ 18.22 | |
ADS [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Closing price | $ 36.43 | |
[1] | The aggregate intrinsic value in the preceding table represents the difference between Changyou's closing price of $36.43 per ADS, or $18.22 per Class A ordinary share, on December 31, 2017 and the nominal exercise prices of the share options. |
Sohu.com Inc. Shareholders' 119
Sohu.com Inc. Shareholders' Equity (Sohu Video Share-based Awards, Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 04, 2012 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 45,477 | $ 19,120 | $ 53,443 | ||
Sohu Video [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | [1] | $ (298) | (845) | 298 | |
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Plan expiration date | Jan. 3, 2021 | ||||
Installments of share options granted | Four equal installments | ||||
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Share Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ (300) | $ (800) | $ 300 | ||
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] | Share Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares purchased on granted options | 16,368,200 | ||||
Number of shares purchased on vested options | 4,972,800 | ||||
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Ordinary Shares [Member] | Share Options [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum term of share rights granted under share incentive plan | 10 years | ||||
[1] | The negative amount resulted from re-measured compensation expense based on the then-current fair value of the awards on the reporting date. |
Sohu.com Inc. Shareholders' 120
Sohu.com Inc. Shareholders' Equity (Sohu Video Share-based Awards, Share Option Assumptions) (Details) - Sohu Video [Member] - Video 2011 Share Incentive Plan [Member] - Share Options [Member] | 12 Months Ended |
Dec. 31, 2017$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average risk-free interest rate | 2.81% |
Exercise multiple | 2.8 |
Expected forfeiture rate (post-vesting) | 14.00% |
Weighted average expected option life | 4 years |
Volatility rate | 44.10% |
Dividend yield | 0.00% |
Fair value | $ 0.64 |
Business Combination (MoboTap,
Business Combination (MoboTap, Narrative) (Details) - USD ($) $ in Thousands | Jul. 31, 2014 | Sep. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 71,565 | $ 68,290 | $ 154,219 | |||
Intangible assets impairment losses | 19,900 | |||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | $ 86,882 | $ 0 | 40,324 | |||
Changyou [Member] | MoboTap [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill impairment loss | $ 83,500 | |||||
Intangible assets impairment losses | 3,400 | |||||
Divestiture of equity interest in MoboTap | 51.00% | |||||
Catch up of depreciation and amortization expense of the assets held for sale before the reclassification | $ 1,400 | |||||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | $ 86,900 | |||||
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 | |||||
Goodwill impairment loss | 29,600 | |||||
Intangible assets impairment losses | $ 8,900 | |||||
Divestiture of equity interest in MoboTap | 51.00% | |||||
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 Combination (Allocatio
Business Combination (Allocation of Consideration of Assets Acquired and Liabilities Assumed Based on Their Fair Values) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 71,565 | $ 68,290 | $ 154,219 | |
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 |
Noncontrolling Interest (Narrat
Noncontrolling Interest (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest in consolidated balance sheets | $ 1,066,603 | $ 564,215 | |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | 84,523 | 109,048 | $ 146,542 |
Sogou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest in consolidated balance sheets | 623,785 | 165,584 | |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | 77,025 | 61,403 | 101,656 |
Changyou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest in consolidated balance sheets | $ 442,818 | $ 398,631 | |
Percentage of noncontrolling interest recognized in consolidated balance sheets | 32.00% | 31.00% | |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ 7,603 | $ 47,645 | $ 44,886 |
Percentage of net income /(loss) attributable to noncontrolling interest recognized in consolidated statements of comprehensive income | 32.00% | 31.00% | 31.00% |
Noncontrolling Interest (Noncon
Noncontrolling Interest (Noncontrolling Interest in Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest in consolidated balance sheets | $ 1,066,603 | $ 564,215 |
Sogou [Member] | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest in consolidated balance sheets | 623,785 | 165,584 |
Changyou [Member] | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest in consolidated balance sheets | $ 442,818 | $ 398,631 |
Noncontrolling Interest (Non125
Noncontrolling Interest (Noncontrolling Interest in Consolidated Statements of Comprehensive Income /(Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Noncontrolling Interest [Line Items] | |||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ 84,523 | $ 109,048 | $ 146,542 |
Sogou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | 77,025 | 61,403 | 101,656 |
Changyou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | 7,603 | 47,645 | 44,886 |
Others [Member] | |||
Noncontrolling Interest [Line Items] | |||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ (105) | $ 0 | $ 0 |
Net Income _(Loss) per Share (N
Net Income /(Loss) per Share (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Sep. 30, 2015 | |
Sogou [Member] | Photon Group Limited [Member] | Pre-IPO [Member] | Series A Preferred Shares [Member] | ||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | ||
Purchase of Pre-IPO Series A Preferred Shares, shares | 6,400,000 | |
Purchase of Pre-IPO Series A Preferred Shares, aggregate purchase price | $ 21 | |
Deemed dividend | $ 11.9 | |
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 | 263,000 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||
Net loss attributable to Sohu.com Inc., basic | $ (554,526) | $ (224,021) | $ (49,598) |
Effect of dilutive securities: | |||
Net loss attributable to Sohu.com Inc., diluted | $ (555,790) | $ (225,660) | $ (50,829) |
Denominator: | |||
Weighted average basic shares of common shares outstanding | 38,858 | 38,706 | 38,598 |
Effect of dilutive securities: | |||
Share options and restricted share units | 0 | 0 | 0 |
Weighted average diluted common shares outstanding | 38,858 | 38,706 | 38,598 |
Basic net loss per share attributable to Sohu.com Inc. | $ (14.27) | $ (5.79) | $ (1.28) |
Diluted net loss per share attributable to Sohu.com Inc. | $ (14.30) | $ (5.83) | $ (1.32) |
Sogou [Member] | |||
Effect of dilutive securities: | |||
Incremental dilution | $ (1,233) | $ 0 | $ 0 |
Changyou [Member] | |||
Effect of dilutive securities: | |||
Incremental dilution | $ (31) | $ (1,639) | $ (1,231) |
China Contribution Plan (Detail
China Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
China Government Mandated Multiemployer Defined Contribution Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Annual Contributions | $ 139.2 | $ 131.6 | $ 132.6 |
Profit Appropriation (Details)
Profit Appropriation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Profit Appropriation [Line Items] | |||
Total amount of profits contributed to funds | $ 12 | $ 4.3 | $ 7.7 |
Total balance of profits contributed to funds | $ 63 | $ 51 | |
China Foreign Investment Enterprises Law [Member] | |||
Profit Appropriation [Line Items] | |||
Required registered capital ratio to de-force compulsory net profit allocation to general reserve fund | 50.00% | ||
China Foreign Investment Enterprises Law [Member] | Minimum [Member] | |||
Profit Appropriation [Line Items] | |||
Required percentage of after-tax-profit under PRC GAAP to be set aside as a general reserve fund | 10.00% | ||
China Company Law [Member] | |||
Profit Appropriation [Line Items] | |||
Required registered capital ratio to de-force compulsory net profit allocation to statutory surplus fund | 50.00% | ||
China Company Law [Member] | Minimum [Member] | |||
Profit Appropriation [Line Items] | |||
Required percentage of after-tax-profit under PRC GAAP to be set aside as statutory surplus fund | 10.00% |
Concentration Risks (Details)
Concentration Risks (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)Institutions | Dec. 31, 2016USD ($)Institutions | Dec. 31, 2015USD ($) | |
Concentration Risk [Line Items] | |||
Revenues | $ 1,860,962,000 | $ 1,650,431,000 | $ 1,937,091,000 |
Changyou [Member] | TLBB [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | 197,700,000 | ||
Changyou [Member] | Legacy TLBB [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | 139,500,000 | ||
Customer Risk [Member] | Total Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Revenues from customers that individually represent greater than 10% of total advertising revenues | $ 0 | $ 0 | $ 0 |
Product Risk [Member] | Total Revenue [Member] | TLBB [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 11.00% | ||
Product Risk [Member] | Total Revenue [Member] | Legacy TLBB [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 8.00% | ||
Product Risk [Member] | Total Revenue [Member] | Changyou [Member] | TLBB [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 34.00% | ||
Product Risk [Member] | Total Revenue [Member] | Changyou [Member] | Legacy TLBB [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 24.00% | ||
Product Risk [Member] | Online Game Revenue [Member] | Changyou [Member] | TLBB [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 44.00% | ||
Product Risk [Member] | Online Game Revenue [Member] | Changyou [Member] | Legacy TLBB [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 31.00% | ||
Credit risk [Member] | Cash and cash equivalents and short-term investments [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 58.00% | 48.00% | |
Number of financial institutions cash and cash equivalents concentrated held in | Institutions | 19 | 14 | |
Maximum percentage of Sohu's cash and bank deposits in any single financial institution | 30.00% | 32.00% |
Restricted Net Assets (Details)
Restricted Net Assets (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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 Finan132
Schedule I - Condensed Financial Information of Registrant (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Cash and cash equivalents | $ 1,364,096 | $ 1,050,957 | $ 1,245,205 | $ 876,340 |
Prepaid and other current assets | 192,675 | 260,133 | ||
Total current assets | 2,630,101 | 1,851,262 | ||
Total assets | 3,389,239 | 2,563,690 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities | 1,155,402 | 932,742 | ||
Long-term liabilities | 416,600 | 73,153 | ||
Total liabilities | 1,572,002 | 1,005,895 | ||
Shareholders' equity: | ||||
Common stock: $0.001 par value per share (75,400 shares authorized; 38,742 shares and 38,898 shares, respectively, issued and outstanding as of December 31, 2016 and 2017) | 45 | 45 | ||
Additional paid-in capital | 1,098,455 | 821,867 | ||
Treasury stock (5,890 shares as of both December 31, 2016 and 2017) | (143,858) | (143,858) | ||
Accumulated other comprehensive income | 38,212 | 3,220 | ||
Retained earnings | (242,220) | 312,306 | ||
Total shareholders' equity | 750,634 | 993,580 | ||
Total liabilities and shareholders' equity | 3,389,239 | 2,563,690 | ||
Sohu.com Inc. [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 2,845 | 8,990 | $ 16,096 | $ 23,189 |
Prepaid and other current assets | 2,285 | 6,218 | ||
Due from subsidiaries and VIEs | 3,806 | 3,806 | ||
Total current assets | 8,936 | 19,014 | ||
Interests in subsidiaries and VIEs | 971,163 | 989,875 | ||
Total assets | 980,099 | 1,008,889 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities | 5,482 | 4,501 | ||
Long-term liabilities | 223,983 | 10,808 | ||
Total liabilities | 229,465 | 15,309 | ||
Shareholders' equity: | ||||
Common stock: $0.001 par value per share (75,400 shares authorized; 38,742 shares and 38,898 shares, respectively, issued and outstanding as of December 31, 2016 and 2017) | 45 | 45 | ||
Additional paid-in capital | 1,098,455 | 821,867 | ||
Treasury stock (5,890 shares as of both December 31, 2016 and 2017) | (143,858) | (143,858) | ||
Accumulated other comprehensive income | 38,212 | 3,220 | ||
Retained earnings | (242,220) | 312,306 | ||
Total shareholders' equity | 750,634 | 993,580 | ||
Total liabilities and shareholders' equity | $ 980,099 | $ 1,008,889 |
Schedule I - Condensed Finan133
Schedule I - Condensed Financial Information of Registrant (Condensed Balance Sheets) (Parenthetical) (Details) - $ / shares shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 75,400 | 75,400 | ||
Common stock, shares issued (in shares) | 38,898 | 38,742 | ||
Common stock, shares outstanding (in shares) | 38,898 | 38,742 | 38,653 | 38,507 |
Treasury stock, shares (in shares) | 5,890 | 5,890 | ||
Sohu.com Inc. [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 75,400 | 75,400 | ||
Common stock, shares issued (in shares) | 38,898 | 38,742 | ||
Common stock, shares outstanding (in shares) | 38,898 | 38,742 | ||
Treasury stock, shares (in shares) | 5,890 | 5,890 |
Schedule I - Condensed Finan134
Schedule I - Condensed Financial Information of Registrant (Condensed Statements of Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Statement of Income Captions [Line Items] | |||
Revenues | $ 1,860,962 | $ 1,650,431 | $ 1,937,091 |
Cost of revenues | 1,035,166 | 859,800 | 859,064 |
Gross profit | 825,796 | 790,631 | 1,078,027 |
Operating expenses: | |||
General and administrative | 122,874 | 119,841 | 173,160 |
Operating loss | (209,178) | (117,134) | 82,469 |
Other income /(expense) | 6,658 | (10,713) | 74,526 |
Income /(loss) before income tax expense | (196,855) | (93,901) | 185,791 |
Income tax expense /(benefit) | 273,148 | 21,072 | 76,936 |
Net loss | (554,526) | (224,021) | (49,598) |
Other comprehensive income /(loss) | 68,429 | (77,155) | (87,655) |
Comprehensive loss | (519,534) | (270,952) | (108,849) |
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 | 8,824 | 8,845 | 22,091 |
Operating loss | (8,824) | (8,845) | (22,091) |
Share of loss of subsidiaries and VIEs | (331,106) | (217,408) | (4,430) |
Other income /(expense) | 71 | (54) | (12) |
Interest income | 152 | 107 | 95 |
Income /(loss) before income tax expense | (339,707) | (226,200) | (26,438) |
Income tax expense /(benefit) | 214,819 | (2,179) | 11,249 |
Net loss | (554,526) | (224,021) | (37,687) |
Other comprehensive income /(loss) | 34,992 | (46,931) | (59,251) |
Comprehensive loss | $ (519,534) | $ (270,952) | $ (96,938) |
Schedule I - Condensed Finan135
Schedule I - Condensed Financial Information of Registrant (Condensed Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net loss | $ (470,003) | $ (114,973) | $ 108,855 |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Share-based compensation expense /(benefit) | 41,468 | 19,120 | 53,443 |
Changes in current assets and liabilities: | |||
Prepaid and other current assets | (19,551) | (15,091) | (101) |
Taxes payable | 48,154 | (36,666) | 29,573 |
Net cash used in operating activities | 183,783 | 239,620 | 506,053 |
Cash flows from financing activities: | |||
Issuance of common stock | 0 | 0 | 2,126 |
Net cash provided by /(used in) financing activities | 801,975 | (327,934) | (43,116) |
Net increase /(decrease) in cash and cash equivalents | 313,139 | (194,248) | 368,865 |
Cash and cash equivalents at beginning of year | 1,050,957 | 1,245,205 | 876,340 |
Cash and cash equivalents at end of year | 1,364,096 | 1,050,957 | 1,245,205 |
Sohu.com Inc. [Member] | |||
Cash flows from operating activities: | |||
Net loss | (554,526) | (224,021) | (37,687) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Investment loss from subsidiaries and VIEs | 331,106 | 217,408 | 4,430 |
Share-based compensation expense /(benefit) | (814) | 1,309 | 15,393 |
Changes in current assets and liabilities: | |||
Prepaid and other current assets | 3,933 | 842 | (71) |
Taxes payable | 0 | (630) | 811 |
Accrued liabilities | 214,156 | (2,014) | 7,905 |
Net cash used in operating activities | (6,145) | (7,106) | (9,219) |
Cash flows from financing activities: | |||
Issuance of common stock | 0 | 0 | 2,126 |
Net cash provided by /(used in) financing activities | 0 | 0 | 2,126 |
Net increase /(decrease) in cash and cash equivalents | (6,145) | (7,106) | (7,093) |
Cash and cash equivalents at beginning of year | 8,990 | 16,096 | 23,189 |
Cash and cash equivalents at end of year | $ 2,845 | $ 8,990 | $ 16,096 |
Notes to Schedule I - Condensed
Notes to Schedule I - Condensed Financial Information of Sohu.com Inc. (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract] | ||
Material contingencies | No | No |
Significant provisions of long-term obligations | No | No |
Mandatory dividend or redemption requirements of redeemable stocks | No | No |
Guarantees | No | No |