Document and Entity Information
Document and Entity Information - USD ($) shares in Millions, $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 29, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SERVICENOW, INC. | ||
Trading Symbol | NOW | ||
Entity Central Index Key | 1,373,715 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 180.5 | ||
Entity Public Float | $ 21 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | [2] |
Current assets: | |||
Cash and cash equivalents | $ 566,204 | $ 726,495 | [1] |
Short-term investments | 931,718 | 1,052,803 | |
Accounts receivable, net | 574,810 | 437,051 | |
Current portion of deferred commissions | 139,890 | 109,643 | |
Prepaid expenses and other current assets | 132,071 | 95,959 | |
Total current assets | 2,344,693 | 2,421,951 | |
Deferred commissions, less current portion | 282,490 | 224,252 | |
Long-term investments | 581,856 | 391,442 | |
Property and equipment, net | 347,216 | 245,124 | |
Intangible assets, net | 100,582 | 86,916 | |
Goodwill | 148,845 | 128,728 | |
Other assets | 73,458 | 51,832 | |
Total assets | 3,879,140 | 3,550,245 | |
Current liabilities: | |||
Accounts payable | 30,733 | 32,109 | |
Accrued expenses and other current liabilities | 330,246 | 253,257 | |
Current portion of deferred revenue | 1,651,594 | 1,210,695 | |
Current portion of convertible senior notes, net | 0 | 543,418 | |
Total current liabilities | 2,012,573 | 2,039,479 | |
Deferred revenue, less current portion | 38,597 | 36,120 | |
Convertible senior notes, net | 661,707 | 630,018 | |
Other long-term liabilities | 55,064 | 65,884 | |
Total liabilities | 2,767,941 | 2,771,501 | |
Commitments and contingencies | |||
Stockholders’ equity: | |||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding | 0 | 0 | |
Common stock $0.001 par value; 600,000,000 shares authorized; 180,175,355 and 174,275,864 shares issued and outstanding at December 31, 2018 and 2017, respectively | 180 | 174 | |
Additional paid-in capital | 2,093,834 | 1,731,367 | |
Accumulated other comprehensive income (loss) | (4,035) | 5,767 | |
Accumulated deficit | (978,780) | (958,564) | |
Total stockholders’ equity | 1,111,199 | 778,744 | |
Total liabilities and stockholders’ equity | $ 3,879,140 | $ 3,550,245 | |
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. | ||
[2] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock , par value (in USD per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares, issued (in shares) | 180,175,355 | 174,275,864 |
Common stock, shares, outstanding (in shares) | 180,175,355 | 174,275,864 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | ||
Revenues: | ||||||
Total revenues | $ 2,608,816 | $ 1,918,494 | $ 1,390,985 | |||
Cost of revenues: | ||||||
Total cost of revenues | [2] | 622,658 | 499,862 | 398,995 | ||
Gross profit | 1,986,158 | 1,418,632 | 991,990 | |||
Operating expenses: | ||||||
Sales and marketing | [2] | 1,203,056 | 894,977 | 659,983 | ||
Research and development | [2] | 529,501 | 377,518 | 285,239 | ||
General and administrative | [2] | 296,027 | 210,533 | 158,936 | ||
Legal settlements | [2] | 0 | 0 | 270,000 | ||
Total operating expenses | [2] | 2,028,584 | 1,483,028 | 1,374,158 | ||
Loss from operations | (42,426) | (64,396) | (382,168) | |||
Interest expense | (52,733) | (53,394) | (33,278) | |||
Interest income and other income (expense), net | 56,135 | 4,384 | 5,027 | |||
Loss before income taxes | (39,024) | (113,406) | (410,419) | |||
Provision for (benefit from) income taxes | (12,320) | 3,440 | 3,830 | |||
Net loss | $ (26,704) | $ (116,846) | [3] | $ (414,249) | [3] | |
Net loss per share - basic and diluted (in USD per share) | $ (0.15) | $ (0.68) | $ (2.52) | |||
Weighted-average shares used to compute net loss per share - basic and diluted (in shares) | 177,846,023 | 171,175,577 | 164,533,823 | |||
Other comprehensive income (loss): | ||||||
Foreign currency translation adjustments | $ (1,903) | $ 23,064 | $ (6,487) | |||
Unrealized gains (losses) on investments, net of tax | (665) | 5,376 | 588 | |||
Other comprehensive income (loss) | (2,568) | 28,440 | (5,899) | |||
Comprehensive loss | (29,272) | (88,406) | (420,148) | |||
Subscription | ||||||
Revenues: | ||||||
Total revenues | 2,421,313 | 1,739,500 | 1,234,070 | |||
Cost of revenues: | ||||||
Total cost of revenues | [2] | 417,421 | 315,570 | 235,414 | ||
Professional services and other | ||||||
Revenues: | ||||||
Total revenues | 187,503 | 178,994 | 156,915 | |||
Cost of revenues: | ||||||
Total cost of revenues | [2] | $ 205,237 | $ 184,292 | $ 163,581 | ||
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. | |||||
[2] | Includes stock-based compensation as follows: Year Ended December 31, 2018 2017 2016 *As Adjusted *As Adjusted Cost of revenues: Subscription $ 48,738 $ 35,334 $ 28,420 Professional services and other 32,816 27,401 26,516 Sales and marketing 228,045 170,527 131,571 Research and development 135,203 92,025 81,731 General and administrative 99,151 68,717 49,416 | |||||
[3] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Stock-based compensation | $ 543,953 | $ 394,004 | [1] | $ 317,654 | [1] |
Sales and marketing | |||||
Stock-based compensation | 228,045 | 170,527 | [2] | 131,571 | [2] |
Research and development | |||||
Stock-based compensation | 135,203 | 92,025 | [2] | 81,731 | [2] |
General and administrative | |||||
Stock-based compensation | 99,151 | 68,717 | [2] | 49,416 | [2] |
Total subscription revenues | Cost of revenues | |||||
Stock-based compensation | 48,738 | 35,334 | [2] | 28,420 | [2] |
Professional services and other | Cost of revenues | |||||
Stock-based compensation | $ 32,816 | $ 27,401 | [2] | $ 26,516 | [2] |
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. | ||||
[2] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect adjustment for ASU adoption | Accounting Standards Update 2016-09 | $ 11,423 | $ 11,423 | ||||
Cumulative effect adjustment for ASU adoption | Accounting Standards Update 2014-09 | 118,225 | 118,117 | $ 108 | |||
Beginning balance (in shares) at Dec. 31, 2015 | 160,785,764 | |||||
Beginning balance at Dec. 31, 2015 | 566,814 | $ 160 | $ 1,140,545 | (557,009) | (16,882) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued under employee stock plans (in shares) | 6,645,009 | |||||
Common stock issued under employee stock plans | 66,368 | $ 7 | 66,361 | |||
Taxes paid related to net share settlement of equity awards | (119,914) | (119,914) | ||||
Stock-based compensation | 318,325 | 318,325 | ||||
Other comprehensive loss, net | (5,899) | [1] | (5,899) | |||
Net loss | (414,249) | [1],[2] | (414,249) | |||
Ending balance (in shares) at Dec. 31, 2016 | 167,430,773 | |||||
Ending balance at Dec. 31, 2016 | 541,093 | $ 167 | 1,405,317 | (841,718) | (22,673) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued under employee stock plans (in shares) | 7,385,897 | |||||
Common stock issued under employee stock plans | 82,559 | $ 7 | 82,552 | |||
Repurchases and retirement of common stock (in shares) | (540,806) | |||||
Repurchases and retirement of common stock | (55,000) | (55,000) | ||||
Taxes paid related to net share settlement of equity awards | (182,127) | (182,127) | ||||
Stock-based compensation | 394,680 | 394,680 | ||||
Equity component of the convertible notes, net | 159,891 | 159,891 | ||||
Purchase of convertible note hedge | (128,017) | (128,017) | ||||
Issuance of warrants | 54,071 | 54,071 | ||||
Other comprehensive loss, net | 28,440 | [1] | 28,440 | |||
Net loss | (116,846) | [1],[2] | (116,846) | |||
Ending balance (in shares) at Dec. 31, 2017 | 174,275,864 | |||||
Ending balance at Dec. 31, 2017 | 778,744 | [3] | $ 174 | 1,731,367 | (958,564) | 5,767 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect adjustment for ASU adoption | Accounting Standards Update 2016-01 | 0 | 7,234 | (7,234) | |||
Cumulative effect adjustment for ASU adoption | Accounting Standards Update 2016-16 | (746) | (746) | ||||
Common stock issued under employee stock plans (in shares) | 5,899,519 | |||||
Common stock issued under employee stock plans | 104,173 | $ 6 | 104,167 | |||
Taxes paid related to net share settlement of equity awards | (281,061) | (281,061) | ||||
Stock-based compensation | 545,805 | 545,805 | ||||
Settlement of 2018 Notes conversion feature (in shares) | 1,313,589 | |||||
Settlement of 2018 Notes conversion feature | (773,301) | $ 1 | (773,302) | |||
Benefit from exercise of 2018 Note Hedges (in shares) | (1,313,617) | |||||
Benefit from exercise of 2018 Note Hedges | 766,857 | $ (1) | 766,858 | |||
Other comprehensive loss, net | (2,568) | (2,568) | ||||
Net loss | (26,704) | (26,704) | ||||
Ending balance (in shares) at Dec. 31, 2018 | 180,175,355 | |||||
Ending balance at Dec. 31, 2018 | $ 1,111,199 | $ 180 | $ 2,093,834 | (978,780) | $ (4,035) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect adjustment for ASU adoption | Accounting Standards Update 2016-01 | $ 7,200 | |||||
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. | |||||
[2] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. | |||||
[3] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - Accounting Standards Update 2014-09 $ in Thousands | Dec. 31, 2015USD ($) |
Cumulative effect adjustment for ASU adoption | $ 118,225 |
Accumulated Deficit | |
Cumulative effect adjustment for ASU adoption | $ 118,117 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Cash flows from operating activities: | ||||||
Net loss | $ (26,704) | $ (116,846) | [1],[2] | $ (414,249) | [1],[2] | |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
Depreciation and amortization | 149,604 | 113,875 | [2] | 83,082 | [2] | |
Amortization of deferred commissions | 143,358 | 99,105 | [2] | 69,565 | [2] | |
Amortization of debt discount and issuance costs | 52,733 | 53,394 | [2] | 33,278 | [2] | |
Stock-based compensation | 543,953 | 394,004 | [2] | 317,654 | [2] | |
Deferred income tax | (34,180) | (5,724) | [2] | (658) | [2] | |
Gain on marketable equity securities | (19,257) | 0 | [2] | 0 | [2] | |
Repayments of convertible senior notes attributable to debt discount | (145,349) | 0 | [2] | 0 | [2] | |
Other | 6,177 | (905) | [2] | 3,764 | [2] | |
Changes in operating assets and liabilities, net of effect of business combinations: | ||||||
Accounts receivable | (146,148) | (99,693) | [2] | (126,415) | [2] | |
Deferred commissions | (239,382) | (190,246) | [2] | (151,921) | [2] | |
Prepaid expenses and other assets | (19,886) | (34,288) | [2] | (24,164) | [2] | |
Accounts payable | (4,757) | (5,504) | [2] | (3,554) | [2] | |
Deferred revenue | 468,856 | 369,242 | [2] | 285,139 | [2] | |
Accrued expenses and other liabilities | 82,071 | 66,526 | [2] | 87,560 | [2] | |
Net cash provided by operating activities | 811,089 | 642,940 | [2] | 159,081 | [2] | |
Cash flows from investing activities: | ||||||
Purchases of property and equipment | (224,462) | (150,510) | [2] | (105,562) | [2] | |
Business combinations, net of cash and restricted cash acquired | (37,440) | (58,203) | [2] | (34,297) | [2] | |
Purchases of other intangibles | (24,400) | (6,670) | [2] | (18,750) | [2] | |
Purchases of investments | (1,285,943) | (1,189,511) | [2] | (518,664) | [2] | |
Purchases of strategic investments | (9,839) | (4,750) | [2] | (500) | [2] | |
Sales of investments | 39,975 | 85,106 | [2] | 297,998 | [2] | |
Maturities of investments | 1,194,687 | 440,590 | [2] | 271,537 | [2] | |
Net cash used in investing activities | (347,422) | (883,948) | [2] | (108,238) | [2] | |
Cash flows from financing activities: | ||||||
Net proceeds from borrowings on convertible senior notes | 0 | 772,127 | [2] | 0 | [2] | |
Repayments of convertible senior notes attributable to principal | (429,645) | (4) | [2] | 0 | [2] | |
Proceeds from issuance of warrants | 0 | 54,071 | [2] | 0 | [2] | |
Purchases of convertible note hedges | 0 | (128,017) | [2] | 0 | [2] | |
Repurchases and retirement of common stock | 0 | (55,000) | [2] | 0 | [2] | |
Proceeds from employee stock plans | 104,160 | 82,567 | [2] | 66,378 | [2] | |
Taxes paid related to net share settlement of equity awards | (281,010) | (181,938) | [2] | (119,907) | [2] | |
Payments on financing obligations | (933) | (4,914) | [2] | (2,223) | [2] | |
Net cash (used in) provided by financing activities | (607,428) | 538,892 | [2] | (55,752) | [2] | |
Foreign currency effect on cash, cash equivalents and restricted cash | (15,530) | 28,013 | [2] | (5,945) | [2] | |
Net (decrease) increase in cash, cash equivalents and restricted cash | (159,291) | 325,897 | [2] | (10,854) | [2] | |
Cash, cash equivalents and restricted cash at beginning of period | [2] | 727,829 | 401,932 | 412,786 | ||
Cash, cash equivalents and restricted cash at end of period | 568,538 | 727,829 | [2] | 401,932 | [2] | |
Cash, cash equivalents and restricted cash at end of period: | ||||||
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | 568,538 | 401,932 | [2] | 401,932 | [2] | |
Supplemental disclosures of other cash flow information: | ||||||
Income taxes paid, net of refunds | 17,507 | 7,899 | [2] | 4,338 | [2] | |
Non-cash investing and financing activities: | ||||||
Settlement of 2018 Notes conversion feature | 773,302 | 0 | [2] | 0 | [2] | |
Benefit from exercise of 2018 Note Hedge | 766,858 | 0 | [2] | 0 | [2] | |
Property and equipment included in accounts payable and accrued expenses | 25,767 | 15,007 | [2] | 15,381 | [2] | |
Purchases of intangible assets included in accrued expenses and other liabilities | $ 8,500 | $ 6,750 | [2] | $ 6,210 | [2] | |
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. | |||||
[2] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation Effective January 1, 2018, we adopted the Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606)” as discussed further below in this Note 2. All amounts and disclosures set forth in this Form 10-K in these consolidated financial statements have been updated to comply with the new standard, including previously reported amounts, which are labeled “as adjusted” in these consolidated financial statements and related notes. Certain prior period amounts reported in our consolidated financial statements and notes thereto, such as Notes 10 and 17, have been reclassified to conform to the current period presentation. Principles of Consolidation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (GAAP), and include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Such management estimates and assumptions include, but are not limited to, the stand-alone selling price (SSP) for each distinct performance obligation included in customer contracts with multiple performance obligations, the period of benefit for deferred commissions, purchase price allocation for business combinations, stock-based compensation expenses, the assessment of the useful life and recoverability of our property and equipment, goodwill and identifiable intangible assets, fair value of convertible notes, income taxes and legal contingencies. Actual results could differ from those estimates. Segments We define the term “chief operating decision maker” to be our Chief Executive Officer. Our chief operating decision maker allocates resources and assesses financial performance based upon discrete financial information at the consolidated level. Accordingly, we have determined that we operate as a single operating and reportable segment. Foreign Currency Translation and Transactions The functional currencies for our foreign subsidiaries are primarily their local currencies. Assets and liabilities of the wholly-owned foreign subsidiaries are translated into U.S. Dollars at exchange rates in effect at each period end. Amounts classified in stockholders’ equity are translated at historical exchange rates. Revenues and expenses are translated at the average exchange rates during the period. The resulting translation adjustments are recorded in accumulated other comprehensive loss as a component of stockholders’ equity. Foreign currency transaction gains and losses are included in interest income and other income (expense), net within the consolidated statements of comprehensive income (loss), and have not been material for all periods presented. Derivative Financial Instruments and Hedging Activities We use derivative financial instruments to manage foreign currency risks. These derivative contracts consist of forward contracts entered into with various counterparties and are not designated as hedging instruments under applicable accounting guidance. As such, all changes in the fair value of these derivative contracts are recorded in Interest income and other income (expense), net on the consolidated statements of comprehensive income (loss), and are intended to offset the foreign currency gains or losses associated with the underlying monetary assets and liabilities. Changes in the related derivative assets and liabilities balances are classified as operating activities in the consolidated statement of cash flows. Allocation of Overhead Costs Overhead costs associated with office facilities, IT and certain depreciation related to infrastructure that is not dedicated for customer use or research and development use are allocated to cost of revenues and operating expenses based on headcount. Revenue Recognition We report our revenues in two categories: (i) subscriptions and (ii) professional services and other. Revenues are recognized when control of these services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation Subscription revenues Subscription revenues are primarily comprised of subscription fees that give customers access to the ordered subscription service, related support and updates, if any, to the subscribed service during the subscription term. We recognize subscription revenues ratably over the contract term beginning on the commencement date of each contract, which is the date we make our services available to our customers. Our contracts with customers typically include a fixed amount of consideration and are generally non-cancelable and without any refund-type provisions. We typically invoice our customers annually in advance for our subscription services upon execution of the initial contract or subsequent renewal, and our invoices are typically due within 30 days from the invoice date. Subscription revenues also include revenues from self-hosted offerings in which customers deploy, or we grant customers the option to deploy without significant penalty, our subscription service internally or contract with a third party to host the software. For these contracts, we account for the software element and the related support and updates separately as they are distinct performance obligations. Refer to the discussion below related to contracts with multiple performance obligations for further details. The transaction price is allocated to separate performance obligations on a relative SSP basis. Transaction price allocated to the software element is recognized upon delivery, which is when transfer of control of the software to the customer is complete. The transaction price allocated to the related support and updates are recognized ratably over the contract term. Professional services and other revenues Our professional services arrangements are primarily on a time-and-materials basis, and revenues on these arrangements are recognized as the services are delivered. We typically invoice our customers monthly in arrears for these professional services based on actual hours and expenses incurred, and our invoices are typically due within 30 days from the invoice date. Some of our professional services arrangements are on a fixed fee or subscription basis, under which we recognize revenues on a proportional performance basis or ratably over the contract term. In instances where certain milestones are required to be met before revenues are recognized, we defer professional services revenues and the associated costs until milestone criteria have been met. Other revenues consist of fees from customer training delivered on-site or through publicly available classes. Contracts with multiple performance obligations We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. We evaluate the terms and conditions included within our customer contracts to ensure appropriate revenue recognition, including whether products and services are considered distinct performance obligations that should be accounted for separately versus together. For contracts with multiple performance obligations, the transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine SSP by considering the historical selling price of these performance obligations in similar transactions as well as other factors, including, but not limited to, competitive pricing of similar products, other software vendor pricing, industry publications and current pricing practices. Unbilled Receivables Unbilled receivables, which is a contract asset, represent subscription revenues that are recognized upon delivery of the software prior to being invoiced. Unbilled receivables are primarily presented under prepaid expenses and other current assets on our consolidated balance sheets. Deferred revenue Deferred revenue, which is a contract liability, consists primarily of payments received in advance of revenue recognition from our contracts with customers and is recognized as the revenue recognition criteria are met. Once our services are available to customers, we record amounts due in accounts receivable and in deferred revenue. To the extent we bill customers in advance of the billing period commencement date, the accounts receivable and corresponding deferred revenue amounts are netted to zero on our consolidated balance sheets, unless such amounts have been paid as of the balance sheet date. Customer deposits Customer deposits primarily relate to payments received from customers which could be refundable pursuant to the terms of the contract and are presented under “accrued expenses and other current liabilities” on our consolidated balance sheets. Deferred Commissions Deferred commissions are the incremental selling costs that are associated with acquiring customer contracts and consist primarily of sales commissions paid to our sales force and referral fees paid to independent third-parties. Capitalized sales commissions also include the associated payroll taxes and fringe benefit costs associated with payments to our sales employees to the extent they are incremental. Commissions and referral fees earned upon the execution of initial and expansion contracts are primarily deferred and amortized over a period of benefit that we have determined to be five years . Commissions earned upon the renewal of customer contracts are deferred and amortized over the average renewal term. Additionally, for self-hosted offerings, consistent with the recognition of subscription revenue for self-hosted offerings, a portion of the commission cost is expensed upfront when the self-hosted offering is made available. We determine the period of benefit by taking into consideration our customer contracts, our technology life cycle and other factors. We include amortization of deferred commissions in sales and marketing expense in our consolidated statements of comprehensive income (loss). There was no impairment loss in relation to the incremental selling costs capitalized for all periods presented. Fair Value Measurements We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized in the financial statements on a non-recurring basis or disclosed at fair value in the financial statements on a recurring basis. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We use a fair value hierarchy that is based on three levels of inputs, of which the first two are considered observable and the last unobservable. The three levels of the fair value hierarchy are as follows: Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access; Level 2—Inputs other than Level 1 that are directly or indirectly observable, such as quoted prices for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities, such as interest rates, yield curves and foreign currency spot rates; and Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with original or remaining maturities of three months or less when purchased. Cash and cash equivalents are stated at fair value. Investments Investments consist of commercial paper, corporate notes and bonds, certificates of deposit and U.S. government and agency securities. We classify investments as available-for-sale at the time of purchase and re-evaluate such classification as of each balance sheet date. All investments are recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income (loss), a component of stockholders’ equity. We evaluate our investments to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in interest income and other income (expense), net in the consolidated statements of comprehensive income (loss). Strategic investments Our strategic investments consist of debt and non-marketable equity investments in privately-held companies in which we do not have a controlling interest or significant influence. Debt investments in privately-held companies are classified as available-for-sale and are recorded at their estimated fair value with changes in fair value recorded through accumulated other comprehensive income (loss). We have elected to apply the measurement alternative for equity investments that do not have readily determinable fair values, measuring them at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. An impairment loss is recorded when event or circumstance indicates a decline in value has occurred. We include these strategic investments in “Other assets” on the consolidated balance sheets. Accounts Receivable We record trade accounts receivable at the net invoice value and such receivables are non-interest bearing. We consider receivables past due based on the contractual payment terms. We review our exposure to accounts receivable and reserve for specific amounts if collectability is no longer reasonably assured. Property and Equipment Property and equipment, net, are stated at cost, subject to review of impairment, and depreciated using the straight-line method over the estimated useful lives of the assets as follows: Building 39 years Computer equipment and software 3-5 years Furniture and fixtures 3-7 years Leasehold and other improvements shorter of the lease term or estimated useful life When assets are sold, or otherwise disposed of, the cost and related accumulated depreciation are removed and any gain or loss is included in cost of revenues or operating expenses depending on whether the asset sold is being used in our provision of services to our customers. Repairs and maintenance expenses are charged to our statements of comprehensive income (loss) as incurred. Capitalized Software Development Costs Software development costs for software to be sold, leased, or otherwise marketed are expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the product is available for general release to customers and amortized over the estimated life of the product. Technological feasibility is established upon the completion of a working prototype that has been certified as having no critical bugs and is a release candidate. To date, costs and time incurred between the establishment of technological feasibility and product release have not been significant, and all software development costs have been charged to research and development expense in our consolidated statements of comprehensive income (loss). Costs incurred to develop our internal administration, finance and accounting systems are capitalized during the application development stage and generally amortized over the software’s estimated useful life of three to five years . Costs related to preliminary project activities and post implementation activities are expensed as incurred. Leases Leases are reviewed and classified as capital or operating at their inception. Some of our lease agreements contain rent escalation, rent holidays, lease incentives and renewal options. Rent escalation and rent holidays are included in the determination of rent expenses to be recorded on a straight-line basis over the lease term. Unless determined to be landlord assets, lease incentives to pay for our costs or assets are recognized as a reduction of rent expense on a straight-line basis over the term of the lease. Renewals are not assumed in the determination of the lease term unless they are deemed to be reasonably assured at the inception of the lease. We begin recognizing rent expense on the date that we obtain the legal right to use and control the leased space. The difference between rent payments and straight-line rent expense is recorded as deferred rent in the consolidated balance sheets. Deferred rent that will be recognized during the ensuing 12 -month period is recorded as the current portion of deferred rent included in “Accrued expenses and other current liabilities” and the remainder is recorded as long term deferred rent included in “Other long-term liabilities”. Business combinations The allocation of the purchase price in a business combination requires us to make significant estimates in determining the fair value of acquired assets and assumed liabilities, especially with respect to intangible assets. These estimates are based upon a number of factors, including historical experience, market conditions and information obtained from the management of the acquired company. Critical estimates in valuing certain intangible assets included, but are not limited to, cash flows that an asset is expected to generate in the future, discount rates, the time and expense that would be necessary to recreate the assets and the profit margin a market participant would receive. Goodwill, Intangible Assets and Other Long-Lived Assets Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. We evaluate and test the recoverability of goodwill for impairment at least annually, during the fourth quarter, or more frequently if circumstances indicate that goodwill may not be recoverable. We perform the impairment testing by first assessing qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of its reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, we determine it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we perform a goodwill impairment test. To calculate any potential impairment, we compare the fair value of a reporting unit with its carrying amount, including goodwill. Any excess of the carrying amount of the reporting unit’s goodwill over its fair value is recognized as an impairment loss, and the carrying value of goodwill is written down. For purposes of goodwill impairment testing, we have one reporting unit. We periodically review the carrying amounts of long-lived assets, such as property and equipment, and purchased intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. We measure the recoverability of these assets by comparing the carrying amount of each asset to the future undiscounted cash flows we expect the asset to generate. If we consider any of these assets to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. In addition, we periodically evaluate the estimated remaining useful lives of long-lived assets to determine whether events or changes in circumstances warrant a revision to the remaining period of depreciation or amortization. Our intangible assets are amortized over their useful lives ranging from four years to ten years . Advertising Costs Advertising costs, excluding costs related to our annual Knowledge user conference and other user forums, are expensed as incurred and are included in sales and marketing expense. These costs for the years ended December 31, 2018 , 2017 and 2016 were $65.2 million , $43.3 million and $32.0 million , respectively. Costs, net of proceeds related to our annual Knowledge user conference and other user forums, are deferred and expensed when the respective events occur. Convertible Senior Notes In May and June 2017, we issued an aggregate of $782.5 million of 0% convertible senior notes (the 2022 Notes) and in November 2013, we issued $575.0 million of 0% convertible senior notes (the 2018 Notes, and together with the 2022 Notes, the Notes). In accounting for the issuance of the Notes, we separated the Notes into liability and equity components. The carrying cost of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the Notes. The difference between the principal amount of the Notes and the proceeds allocated to the liability component, or the debt discount, is amortized to interest expense using the effective interest method over the term of the respective Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the issuance of the Notes, we allocated the total amount incurred to the liability and equity components based on their relative fair values. Transaction costs attributable to the liability component are being amortized to interest expense over the respective terms of the Notes, and transaction costs attributable to the equity component were netted with the equity component of the Notes in stockholders’ equity. To the extent we receive note conversion requests prior to the maturity of the Notes, the difference between the fair value and the amortized book value of the Notes is recorded as a gain or loss on early note conversion. The fair value of the Notes is measured based on a similar liability that does not have an associated convertible feature, based on the remaining term of the Notes. Legal Contingencies From time to time, we are a party to litigation and other legal proceedings in the ordinary course of business. We accrue for loss contingencies when we can reasonably estimate the amount of loss or range of loss and when, based on the advice of counsel, we believe it is probable that we will incur the loss. Because of uncertainties related to these matters, we base our estimate on the information available at the time of our assessment. As additional information becomes available, we reassess our potential liability and may revise our estimate. Stock-based Compensation We recognize compensation expense related to stock options and restricted stock units (RSUs) with only a service condition on a straight-line basis over the requisite service period, which is generally the vesting term of four years . For RSUs granted with both a service condition and a performance condition, the expenses are recognized on a graded vesting basis over the requisite service period of generally three years , after assessing the probability of achieving requisite performance criteria. This has the impact of greater stock-based compensation expense during the initial years of the vesting period as stock-based compensation cost is recognized over the requisite service period for each separately vesting tranche of the award as though the award were, in substance, multiple awards. We recognize compensation expense related to shares issued pursuant to the employee stock purchase plan (ESPP) on a straight-line basis over the six months offering period. We estimate the fair value of options using the Black-Scholes options pricing model and fair value of RSUs using the fair value of our common stock on the date of grant. We recognize compensation expense net of estimated forfeiture activity, which is based on historical forfeiture rates. In some instances, shares are issued on the vesting dates net of the minimum statutory tax withholding requirements to be paid by us on behalf of our employees. In these instances, we record the liability for withholding amounts to be paid by us as a reduction to additional paid-in capital when paid, and include these payments as a reduction of cash flows from financing activities. Net Income (Loss) Per Share Basic net income (loss) per share attributable to common stockholders is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, adjusted for the effects of dilutive shares of common stock, which are comprised of outstanding stock options, RSUs, ESPP obligations, Notes and Warrants. Stock awards with performance conditions are included in dilutive shares to the extent the performance condition is met. The dilutive potential common shares are computed using the treasury stock method or the as-if converted method, as applicable. The effects of outstanding stock options, RSUs, ESPP obligations, Notes and Warrants are excluded from the computation of diluted net income (loss) per share in periods in which the effect would be antidilutive. Concentration of Credit Risk and Significant Customers Financial instruments potentially exposing us to credit risk consist primarily of cash, cash equivalents, derivative contracts, investments and accounts receivable. We hold cash at financial institutions that management believes are high credit, quality financial institutions and invest in securities with a minimum rating of BBB by Standard & Poor’s, Baa2 by Moody’s, or BBB by Fitch to minimize our credit risks. Our derivative contracts expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the arrangement. We mitigate this credit risk by transacting with major financial institutions with high credit ratings and entering into master netting arrangements, which permit net settlement of transactions with the same counterparty. While the contract or notional amount is often used to express the volume of foreign currency derivative contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed the obligations of the Company to the counterparties. We are not required to pledge, and are not entitled to receive, cash collateral related to these derivative instruments. We are also exposed to credit risk under the convertible note hedge transactions that may result from counterparties’ non-performance. Credit risk arising from accounts receivable is mitigated due to our large number of customers and their dispersion across various industries and geographies. As of December 31, 2018 and 2017 , there were no customers that represented more than 10% of our accounts receivable balance. There were no customers that individually exceeded 10% of our total revenues in any of the periods presented. For purposes of assessing concentration of credit risk and significant customers, a group of customers under common control or customers that are affiliates of each other are regarded as a single customer. We review the composition of the accounts receivable balance, historical write-off experience and the potential risk of loss associated with delinquent accounts to determine if an allowance for doubtful accounts is necessary. Individual accounts receivable are written off when we become aware of a specific customer’s inability to meet its financial obligation, and all collection efforts are exhausted. The following table presents the changes in the allowance for doubtful accounts (in thousands): Balance at Beginning of Year Additions (Deductions): Charged to Operations Additions (Deductions): Charged to Deferred Revenue Less: Write-offs Balance at End of Year Year ended December 31, 2018 Allowance for doubtful accounts $ 3,115 1,255 1,177 898 $ 4,649 Year ended December 31, 2017 Allowance for doubtful accounts $ 2,323 1,688 194 1,090 $ 3,115 Year ended December 31, 2016 Allowance for doubtful accounts $ 1,179 2,219 (391 ) 684 $ 2,323 Warranties and Indemnification Our cloud computing solutions are typically warranted to perform in material conformance with their specifications. We include service level commitments to our customers that permit those customers to receive credits in the event we fail to meet those service levels. We establish an accrual based on an evaluation of the known service disruptions. Service level credit accrual charges are recorded against revenue and were not material for all periods presented. We have also agreed to indemnify our directors, executive officers and certain other officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by us, arising out of that person’s services as a director or officer of our company or that person’s services provided to any other company or enterprise at our request. We maintain director and officer insurance coverage that may enable us to recover a portion of any future amounts paid. The fair values of these obligations are not material as of each balance sheet date. Our agreements include provisions indemnifying customers against intellectual property and other third-party claims. We have not incurred any costs as a result of such indemnification obligations and have not recorded any liabilities related to such obligations in the consolidated financial statements. Income Taxes We use the asset and liability method of accounting for income taxes, in which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be reversed. We recognize the effect on deferred tax assets and liabilities of a change in tax rates within the provision for income taxes as income and expense in the period that includes the enactment date. A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. In determining the need for a valuation allowance, we consider future growth, forecasted earnings, future taxable income, the mix of earnings in the jurisdictions in which we operate, historical earnings, taxable income in prior years, if carryback is permitted under the law, carryforward periods and prudent and feasible tax planning strategies. Our tax positions are subject to income tax audits by multiple ta |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Abstract] | |
Investments | Investments Marketable Debt Securities The following is a summary of our available-for-sale investment securities, excluding marketable equity securities and those securities classified within cash and cash equivalents on the consolidated balance sheets (in thousands): December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities: Commercial paper $ 108,061 $ — $ — $ 108,061 Corporate notes and bonds 1,233,589 343 (4,218 ) 1,229,714 Certificates of deposit 73,584 1 — 73,585 U.S. government and agency securities 102,549 23 (358 ) 102,214 Total available-for-sale securities $ 1,517,783 $ 367 $ (4,576 ) $ 1,513,574 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities: Commercial paper $ 258,348 $ 1 $ (5 ) $ 258,344 Corporate notes and bonds 1,006,302 26 (3,084 ) 1,003,244 Certificates of deposit 33,084 — — 33,084 U.S. government and agency securities 129,494 — (638 ) 128,856 Total available-for-sale securities $ 1,427,228 $ 27 $ (3,727 ) $ 1,423,528 As of December 31, 2018 , the contractual maturities of our investment securities, excluding securities classified within cash and cash equivalents on the consolidated balance sheets, did not exceed 36 months . The fair values of available-for-sale investment securities, by remaining contractual maturity, are as follows (in thousands): December 31, 2018 Due within 1 year $ 931,718 Due in 1 year through 5 years 581,856 Total $ 1,513,574 The following table shows the fair values and the gross unrealized losses of these securities, classified by the length of time that the securities have been in a continuous unrealized loss position, and aggregated by investment types, excluding those securities classified within cash and cash equivalents on the consolidated balance sheets (in thousands): December 31, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate notes and bonds $ 714,605 $ (2,603 ) $ 294,956 $ (1,615 ) $ 1,009,561 $ (4,218 ) Certificates of deposit 1,000 — — — 1,000 — U.S. government and agency securities 11,756 (5 ) 61,457 (353 ) 73,213 (358 ) Total $ 727,361 $ (2,608 ) $ 356,413 $ (1,968 ) $ 1,083,774 $ (4,576 ) December 31, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Commercial paper $ 14,809 $ (5 ) $ — $ — $ 14,809 $ (5 ) Corporate notes and bonds 819,113 (2,703 ) 141,874 (381 ) 960,987 (3,084 ) U.S. government and agency securities 106,301 (593 ) 22,555 (45 ) 128,856 (638 ) Total $ 940,223 $ (3,301 ) $ 164,429 $ (426 ) $ 1,104,652 $ (3,727 ) As of December 31, 2018 , we had a total of 522 available-for-sale securities, excluding those securities classified within cash and cash equivalents on the consolidated balance sheet in an unrealized loss position. There were no impairments considered “other-than-temporary” as it is more likely than not we will hold the securities until maturity or a recovery of the cost basis. Marketable Equity Securities As of December 31, 2017 , we had marketable equity securities of $20.7 million . In May 2018, we sold these securities for total proceeds of $40.0 million . We recognized net gains of $19.3 million for the year ended December 31, 2018 , resulting from our adoption of ASU 2016-01 as we began to record changes in stock price fluctuations of our marketable equity securities through statement of operations rather than in accumulated other comprehensive income (loss) on our consolidated balance sheet. During the year ended December 31, 2017 , prior to the adoption of ASU 2016-01, we recognized $10.7 million of unrealized gains on our marketable equity securities offset by $3.5 million of tax effect through accumulated other comprehensive income (loss) on our consolidated balance sheet. Refer to Note 2 for further details on ASU 2016-01. Upon our sale of these securities, the previously unrealized gain became realized. As of December 31, 2018 , we had no marketable equity securities on our consolidated balance sheet. Strategic Investments As of December 31, 2018 and 2017 , the total amount of equity investments in privately-held companies included in other assets on our consolidated balance sheets was $14.6 million and $4.8 million , respectively. As there have been no material observable price changes, we have not recorded any adjustments resulting from observable price changes or impairment charges for any of our equity investments in privately-held companies. The fair value of our debt investments in privately-held companies included within our strategic investments was $1.0 million as of December 31, 2018 and 2017 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of December 31, 2018 (in thousands): Level 1 Level 2 Total Cash equivalents: Money market funds $ 229,047 $ — $ 229,047 Commercial paper — 16,961 16,961 Certificates of deposit — 2,465 2,465 Short-term investments: Commercial paper — 108,061 108,061 Corporate notes and bonds — 679,542 679,542 Certificates of deposit — 56,596 56,596 U.S. government and agency securities — 87,519 87,519 Long-term investments: Corporate notes and bonds — 550,172 550,172 Certificates of deposit — 16,989 16,989 U.S. government and agency securities — 14,695 14,695 Total $ 229,047 $ 1,533,000 $ 1,762,047 The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of December 31, 2017 (in thousands): Level 1 Level 2 Total Cash equivalents: Money market funds $ 282,507 $ — $ 282,507 Commercial paper — 100,456 100,456 Corporate notes and bonds — 50,437 50,437 Short-term investments: Commercial paper — 258,344 258,344 Corporate notes and bonds — 688,316 688,316 Certificates of deposit — 17,950 17,950 U.S. government and agency securities — 67,476 67,476 Marketable equity securities 20,717 — 20,717 Long-term investments: Corporate notes and bonds — 314,928 314,928 Certificates of deposit — 15,134 15,134 U.S. government and agency securities — 61,380 61,380 Total $ 303,224 $ 1,574,421 $ 1,877,645 We determine the fair value of our security holdings based on pricing from our service provider and market prices from industry-standard independent data providers. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs), such as yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations 2018 Business Combinations During the year ended December 31, 2018 , we completed four business combinations for an aggregate purchase price of $37.6 million . In allocating the aggregate purchase price based on the estimated fair values, we recorded a total of $13.5 million of developed technology intangible assets (to be amortized over estimated useful lives of five years ), $2.2 million of deferred tax liabilities and $26.1 million of goodwill, of which $8.0 million of the goodwill amount is deductible for income tax purposes. 2017 Business Combinations SkyGiraffe On October 31, 2017, we completed the acquisition of a privately-held company, SkyGiraffe Ltd. (SkyGiraffe), by acquiring all issued and outstanding common shares of SkyGiraffe for approximately $32.3 million in an all-cash transaction to enhance the consumer product-like mobile experience of our solutions. The following table summarizes the allocation of the purchase price to the fair value of the tangible and intangible assets acquired and liabilities assumed as of the acquisition date: Purchase Price Allocation (in thousands) Useful Life (in years) Net tangible assets acquired $ 675 Intangible assets: Developed technology 15,600 5 Goodwill (2) 19,386 Net deferred tax liabilities (1) (3,341 ) Total purchase price $ 32,320 (1) Deferred tax liabilities, net primarily relates to purchased identifiable intangible assets and is shown net of deferred tax assets. (2) The goodwill balance for this business combination is not deductible for income tax purposes. Other 2017 Business Combinations We also completed three other business combinations for an aggregate purchase price of approximately $26.6 million in cash. In allocating the aggregate purchase price based on the estimated fair values, we recorded $9.9 million of developed technology intangible assets (to be amortized over estimated useful lives of five years ), $3.6 million of deferred tax liabilities and a total of $20.3 million of goodwill, of which $4.1 million of the goodwill amount is deductible for income tax purposes. 2016 Business Combinations During the year ended December 31, 2016 , we completed two business combinations for an aggregate purchase price of $34.1 million in cash. In allocating the aggregate purchase price based on the estimated fair value, we recorded a total of $12.8 million of developed technology intangible assets (to be amortized over estimated useful lives of five to six years ), $4.9 million of deferred tax liabilities and a total of $26.7 million of goodwill, of which none is deductible for income tax purposes. For all of our 2018, 2017 and 2016 business combinations, the excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. We believe the goodwill represents the synergies expected from expanded market opportunities when integrating the acquired technologies with our offerings. Aggregate acquisition-related costs associated with our business combinations of $1.0 million , $2.4 million and $1.0 million for the years ended December 31, 2018 , 2017 and 2016 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill balances are presented below (in thousands): Carrying Amount Balance as of December 31, 2016 $ 82,534 Goodwill acquired 39,668 Foreign currency translation adjustments 6,526 Balance as of December 31, 2017 128,728 Goodwill acquired 26,063 Foreign currency translation adjustments (5,946 ) Balance as of December 31, 2018 $ 148,845 Intangible assets consist of the following (in thousands): December 31, December 31, 2018 2017 Developed technology $ 114,395 $ 102,349 Patents 57,180 31,030 Other 650 1,575 Total intangible assets 172,225 134,954 Less: accumulated amortization (71,643 ) (48,038 ) Net carrying amount $ 100,582 $ 86,916 Apart from the business combinations described in Note 5, we acquired $26.2 million and $13.4 million of intangible assets during the years ended December 31, 2018 and 2017 , respectively. Weighted-average useful life for the intangible assets acquired during the year ended December 31, 2018 and 2017 is approximately seven years and ten years , respectively. Amortization expense for intangible assets was approximately $25.2 million , $19.7 million , $15.1 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The following table presents the estimated future amortization expense related to intangible assets held at December 31, 2018 (in thousands): Years Ending December 31, 2019 $ 29,037 2020 19,447 2021 17,521 2022 13,608 2023 7,739 Thereafter 13,230 Total future amortization expense $ 100,582 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consists of the following (in thousands): December 31, 2018 2017 Computer equipment $ 493,536 $ 326,378 Computer software 58,303 46,413 Leasehold and other improvements 74,721 56,232 Furniture and fixtures 42,551 38,789 Building 6,551 7,084 Construction in progress 10,167 5,341 685,829 480,237 Less: Accumulated depreciation (338,613 ) (235,113 ) Total property and equipment, net $ 347,216 $ 245,124 Construction in progress consists primarily of building, leasehold and other improvements and in-process software development costs. Depreciation expense was $123.0 million , $93.2 million and $67.8 million for the years ended December 31, 2018 , 2017 and 2016 |
Derivative Contracts
Derivative Contracts | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Contracts | Derivative Contracts We conduct business on a global basis in multiple foreign currencies, subjecting us to foreign currency risk. In order to manage certain exposures to currency fluctuations, we initiated a limited hedging program during the year ended December 31, 2018 by entering into foreign currency derivative contracts with maturities of 12 months or less to hedge a portion of our net outstanding monetary assets and liabilities. As of December 31, 2018 , we had derivative contracts with total notional values of $883.9 million , which are not designated as hedge instruments. Our foreign currency contracts are classified within Level 2 because the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates. The fair values of these outstanding derivative contracts as of December 31, 2018 were as follows (in thousands): Consolidated Balance Sheet Location December 31, 2018 Derivative Assets: Foreign currency derivative contracts Prepaid expenses and other current assets $ 22,831 Derivative Liabilities Foreign currency derivative contracts Accrued expenses and other current liabilities $ 2,441 |
Deferred Revenue and Performanc
Deferred Revenue and Performance Obligations | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue and Performance Obligations | Deferred Revenue and Performance Obligations Revenues recognized during the year ended December 31, 2018 from amounts included in deferred revenue as of December 31, 2017 are $1.1 billion . Transaction Price Allocated to the Remaining Performance Obligations Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancelable amounts that will be invoiced and recognized as revenues in future periods. We apply the practical expedient in accordance with Topic 606 to exclude amounts related to professional services contracts that are on a time-and-material basis, which typically have a remaining duration of one year or less. In addition, we elected to apply the practical expedient to not disclose the transaction price allocated to remaining performance obligations for all periods presented before January 1, 2018, the date of our initial adoption of Topic 606. As of December 31, 2018 , the total remaining non-cancelable performance obligations under our contracts with customers was approximately $4.9 billion , and we expect to recognize revenues on approximately 50% of these remaining performance obligations over the following 12 months |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in thousands): December 31, 2018 2017 *As Adjusted Accrued payroll $ 158,006 $ 130,400 Taxes payable 35,122 25,617 Other employee related liabilities 60,889 44,284 Other 76,229 52,956 Total accrued expenses and other current liabilities $ 330,246 $ 253,257 |
Convertible Senior Notes
Convertible Senior Notes | 12 Months Ended |
Dec. 31, 2018 | |
Convertible Notes Payable [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes In May and June 2017, we issued the 2022 Notes, which are due June 1, 2022 unless earlier converted or repurchased in accordance with their terms. In November 2013, we issued the 2018 Notes, which were earlier converted prior to, or settled on November 1, 2018, in accordance with their terms. The Notes do not bear interest, and we cannot redeem the Notes prior to maturity. The Notes are unsecured obligations and do not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by us or any of our subsidiaries. Upon conversion of the Notes, we may choose to pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock upon settlement. We have settled the principal amount of our 2018 Notes with cash and currently intend to settle the principal amount of the 2022 Notes with cash. Convertible Date Initial Conversion Price per Share Initial Conversion Rate per $1,000 Par Value Initial Number of Shares 2022 Notes February 1, 2022 $ 134.75 7.42 shares 5,806,936 2018 Notes July 1, 2018 $ 73.88 13.54 shares 7,783,023 Holders of the Notes may convert their Notes at their option at any time prior to the close of business on the business day immediately preceding February 1, 2022 and July 1, 2018, for the 2022 Notes and 2018 Notes, respectively (each, a Convertible Date), only under the following circumstances: • during any calendar quarter (and only during such calendar quarter) if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the applicable conversion price on each applicable trading day (in each case, the Conversion Condition); or • during the five -business day period after any five -consecutive trading day period, or the measurement period, in which the trading price per $1,000 principal amount of the Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the applicable conversion rate on each such trading day; or • upon the occurrence of specified corporate events. On or after the applicable Convertible Date, a holder may convert all or any portion of its Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date regardless of the foregoing conditions, and such conversions will settle upon the applicable maturity date. Upon settlement, we will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. The conversion price will be subject to adjustment in some events. Holders of the Notes who convert their Notes in connection with certain corporate events that constitute a “make-whole fundamental change” are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a corporate event that constitutes a “fundamental change,” holders of the Notes may require us to purchase with cash all or a portion of the Notes upon the occurrence of a fundamental change, at a purchase price equal to 100% of the principal amount of the respective Notes plus any accrued and unpaid special interest, if any. In accounting for the issuance of the Notes and the related transaction costs, we separated the Notes into liability and equity components. The Notes consisted of the following (in thousands): December 31, 2018 December 31, 2017 Liability component: Principal: 2022 Notes $ 782,500 $ 782,500 2018 Notes — 574,994 Less: debt issuance cost and debt discount, net of amortization 2022 Notes (120,793 ) (152,482 ) 2018 Notes — (31,576 ) Net carrying amount $ 661,707 $ 1,173,436 2022 Notes 2018 Notes Equity component recorded at issuance: Note $ 162,039 $ 155,319 Issuance cost (2,148 ) (3,257 ) Net amount recorded in equity $ 159,891 $ 152,062 The Conversion Condition for the 2022 Notes was met for the quarters ended June 30, 2018 and September 30, 2018. Therefore, our 2022 Notes became convertible at the holders’ option beginning on July 1, 2018 through December 31, 2018. The Conversion Condition for the 2022 Notes was not met for the quarter ended December 31, 2018, and therefore the 2022 Notes are not convertible at the holders’ option for the quarter ending March 31, 2019. We have not received any conversion requests for our 2022 Notes. The Conversion Condition for the 2018 Notes was met for the quarters ended June 30, 2017, September 30, 2017, December 31, 2017 and March 31, 2018. Therefore, our 2018 Notes became convertible at the holders’ option beginning on July 1, 2017 and continued to be convertible at the holders’ option through June 30, 2018. Conversion requests received subsequent to June 30, 2018 were settled on the maturity date. We settled $413.2 million principal amount of the 2018 Notes in early conversions and the remaining principal amount of $161.8 million was settled on November 1, 2018, the maturity date of our 2018 Notes. The conversion value over the principal amount for the early 2018 Note conversions was settled in cash from the exercise of the 2018 Note Hedges (as defined below). The conversion value over the principal amount for the principal amount settled on November 1, 2018 was satisfied with approximately 1.3 million shares of our common stock, which was entirely offset by shares of our common stock delivered to us by the 2018 Note Hedge counterparties under the 2018 Note Hedge, and cash in lieu of fractional shares. The shares delivered to us by the 2018 Note Hedge counterparties were immediately retired. As a result of the early note conversions, we recorded a loss of $4.1 million for the year ended December 31, 2018 . As a result of the settlement of the 2018 Notes and the 2018 Note Hedges, we recorded an aggregate $6.4 million net reduction to additional paid-in capital, reflecting $773.3 million of fair value adjustments to the conversion option settled, offset by a $766.9 million benefit from the exercise of the 2018 Note Hedges. For statement of cash flow presentation, we bifurcated the principal amount of the 2018 Notes paid during the year ended December 31, 2018 into two components: the portion of the repayment attributable to debt discount is classified as cash outflows from operating activities, and the portion of the repayment attributable to the principal is classified as cash outflows from financing activities. We consider the fair value of the Notes at December 31, 2018 to be a Level 2 measurement. The estimated fair values of the Notes at December 31, 2018 and December 31, 2017 based on the closing trading price per $100 of the Notes were as follows (in thousands): December 31, 2018 December 31, 2017 2022 Notes $ 1,105,281 897,778 2018 Notes $ — $ 1,015,554 As of December 31, 2018 , the remaining life of the 2022 Notes is 41 months, and the 2018 Notes were no longer outstanding. The following table sets forth total interest expense recognized related to the Notes (in thousands): Year Ended December 31, 2018 2017 2016 Amortization of debt issuance cost 2022 Notes $ 1,531 $ 860 $ — 2018 Notes 1,131 1,911 1,785 Amortization of debt discount 2022 Notes 30,159 16,921 — 2018 Notes 19,912 33,702 31,493 Total $ 52,733 $ 53,394 $ 33,278 Effective interest rate of the liability component 2022 Notes 4.75% 2018 Notes 6.50% Note Hedges To minimize the impact of potential economic dilution upon conversion of the Notes, we entered into convertible note hedge transactions (the 2022 Note Hedge and 2018 Note Hedge, respectively, and collectively, the Note Hedges) with certain investment banks, with respect to our common stock concurrently with the issuance of the 2022 Notes and 2018 Notes. Purchase Shares (in thousands) 2022 Note Hedge $ 128,017 5,806,936 2018 Note Hedge $ 135,815 7,783,023 The Note Hedges cover shares of our common stock at a strike price per share that corresponds to the initial conversion price of the respective Notes, subject to adjustment, and are exercisable upon conversion of the Notes. If exercised, we may elect to receive cash, shares of our common stock, or a combination of cash and shares. We have accounted for the aggregate amount of purchase price for the Note Hedges as a reduction to additional paid-in capital. The Note Hedges will expire upon the maturity of the Notes. The Note Hedges are intended to reduce the potential economic dilution upon conversion of the Notes in the event that the fair value per share of our common stock at the time of exercise is greater than the conversion price of the Notes. The Note Hedges are separate transactions and are not part of the terms of the Notes. Holders of the Notes will not have any rights with respect to the Note Hedges. The Note Hedges do not impact earnings per share, as they were entered into to offset any dilution from the Notes. As of December 31, 2018 , the 2018 Note Hedge is no longer outstanding, and 5,806,936 shares remain subject to the 2022 Note Hedge. Warrants Proceeds Shares Strike Price First Expiration Date (in thousands) 2022 Warrants $ 54,071 5,806,936 $ 203.40 September 1, 2022 2018 Warrants $ 84,525 7,783,023 $ 107.46 February 1, 2019 Separately, we entered into warrant transactions with certain investment banks, whereby we sold warrants to acquire, subject to adjustment, the number of shares of our common stock shown in the table above (the 2022 Warrants and 2018 Warrants, respectively, and collectively, the Warrants). If the average market value per share of our common stock for the reporting period, as measured under the Warrants, exceeds the strike price of the respective Warrants, such Warrants would have a dilutive effect on our earnings per share to the extent we report net income. According to the terms of each of the Warrants, the Warrants will be automatically exercised over a 60 trading day period beginning on the first expiration date of the respective Warrants as set forth above. The Warrants are separate transactions and are not remeasured through earnings each reporting period. The Warrants are not part of the Notes or Note Hedges, and have been accounted for as part of additional paid-in capital. As the 2018 Warrants and the 2022 Warrants will be net share settled, the total number of shares of our common stock we will issue depends on the daily volume-weighted average stock prices over a 60 trading day period beginning on the first expiration date of the 2018 Warrants, which was February 1, 2019, and the first expiration date of the 2022 Warrants, which will be September 1, 2022. We have issued and expect to continue to issue additional shares of our common stock in the first half of 2019 upon the automatic exercise of the 2018 Warrants. Additionally, we expect to issue additional shares of our common stock in the second half of 2022 upon the automatic exercise of the 2022 Warrants. Based on the volume-weighted average stock price on February 1, 2019, the total number of shares of our common stock to be issued upon the exercise of the 2018 Warrants would be approximately 4.0 million , resulting in immediate and substantial dilution to our existing stockholders. Similarly, the 2022 Warrants could have a dilutive effect to the extent that the daily volume-weighted average stock prices over a 60 trading day period beginning on September 1, 2022 exceeds the strike price of the 2022 Warrants. Based on the volume-weighted average stock price on February 1, 2019, the total number of shares of our common stock to be issued upon the automatic exercise of the 2022 warrants would be approximately 0.4 million |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) consist of the following (in thousands): December 31, 2018 2017 *As Adjusted Foreign currency translation adjustment $ 344 $ 2,246 Net unrealized gain (loss) on investments, net of tax (1) (4,379 ) 3,521 Accumulated other comprehensive income (loss) $ (4,035 ) $ 5,767 (1) The net unrealized gain (loss) on investments as of December 31, 2018 includes a cumulative-effect adjustment, net of tax of $7.2 million resulting from our adoption of ASU 2016-01. See Note 2 for further details. *As adjusted to reflect the impact of the full retrospective adoption of Topic 606. See Note 2 for further details. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock We are authorized to issue a total of 600,000,000 shares of common stock as of December 31, 2018 . Holders of our common stock are not entitled to receive dividends unless declared by our board of directors. As of December 31, 2018 , we had 180,175,355 shares of common stock outstanding and had reserved shares of common stock for future issuance as follows: December 31, 2018 Stock plans: Options outstanding 1,810,580 RSUs (1) 10,201,660 Stock awards available for future grants: 2012 Equity Incentive Plan (2) 31,999,234 2012 Employee Stock Purchase Plan (2) 10,714,423 Total reserved shares of common stock for future issuance 54,725,897 (1) Represents the number of shares issuable upon settlement of outstanding RSUs and performance RSUs, assuming 100% of the target number of shares for performance RSUs, as discussed under the section entitled “RSUs” in Note 14. (2) Refer to Note 14 for a description of these plans. During the years ended December 31, 2018 and 2017 , we issued a total of 5,899,519 shares and 7,385,897 shares, respectively, from stock option exercises, vesting of RSUs, net of employee payroll taxes and purchases from ESPP. In May 2017, we repurchased and retired 540,806 shares of our common stock for approximately $55.0 million , or $101.70 per share, from certain purchasers of the 2022 Notes in connection with the 2022 Notes offering. As described in Note 11, we received and retired 1.3 million shares of our common stock during the year ended December 31, 2018 in conjunction with our exercise of the 2018 Note Hedge. Preferred Stock Our board of directors has the authority, without further action by stockholders, to issue up to 10,000,000 shares of preferred stock in one or more series. Our board of directors may designate the rights, preferences, privileges and restrictions of the preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preference and number of shares constituting any series or the designation of any series. The issuance of preferred stock could have the effect of restricting dividends on our common stock, diluting the voting power of our common stock, impairing the liquidation rights of our common stock, or delaying or preventing a change in control. At December 31, 2018 and 2017 , no |
Equity Awards
Equity Awards | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Awards | Equity Awards We currently have two equity incentive plans, our 2005 Stock Option Plan (the 2005 Plan) and our 2012 Equity Incentive Plan (the 2012 Plan). Our 2005 Plan was terminated in connection with our initial public offering in 2012 but continues to govern the terms of outstanding stock options that were granted prior to the termination of the 2005 Plan. We no longer grant equity awards pursuant to our 2005 Plan. Our 2012 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, RSUs, performance-based stock awards and other forms of equity compensation (collectively, equity awards). In addition, the 2012 Plan provides for the grant of performance cash awards. Incentive stock options may be granted only to employees. All other equity awards may be granted to employees, including officers, as well as directors and consultants. The share reserve may increase to the extent outstanding stock options under the 2005 Plan expire or terminate unexercised. Prior to January 2019, the share reserve also automatically increased on January 1 of each year until January 1, 2022, by up to 5% of the total number of shares of common stock outstanding on December 31 of the preceding year as determined by our board of directors. Our board of directors elected not to increase the number of shares of common stock reserved for issuance under the 2012 Plan pursuant to the provision described in the preceding sentence for the year ending December 31, 2019 . In January 2019, our Board of Directors amended the 2012 Plan to remove the automatic increase provision. Therefore, for the remaining term of the 2012 Plan, the share reserve will not be increased without stockholder approval. Our 2012 Employee Stock Purchase Plan (the 2012 ESPP) authorizes the issuance of shares of common stock pursuant to purchase rights granted to our employees. The price at which common stock is purchased under the 2012 ESPP is equal to 85% of the fair market value of our common stock on the first or last day of the offering period, whichever is lower. Offering periods are six months long and begin on February 1 and August 1 of each year. The number of shares of common stock reserved for issuance automatically increases on January 1 of each year until January 1, 2022, by up to 1% of the total number of shares of common stock outstanding on December 31 of the preceding year as determined by our board of directors. Our board of directors elected not to increase the number of shares of common stock reserved for issuance under the 2012 ESPP pursuant to the provision described in the preceding sentence for the year ending December 31, 2019 . Stock Options Stock options are exercisable at a price equal to the market value of the underlying shares of common stock on the date of the grant as determined by our board of directors or, for those stock options issued subsequent to our IPO, the closing price of our common stock as reported on the New York Stock Exchange on the date of grant. Stock options granted under our 2005 Plan and the 2012 Plan to new employees generally vest 25% one year from the date the requisite service period begins and continue to vest monthly for each month of continued employment over the remaining three years . Options granted generally are exercisable for a period of up to ten years contingent on each holder’s continuous status as a service provider. A summary of stock option activity was as follows: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2016 5,818,435 $ 20.57 Granted 616,720 86.33 Exercised (2,970,914 ) 12.44 $ 277,670 Canceled (94,509 ) 68.88 Outstanding at December 31, 2017 3,369,732 38.43 Exercised (1,461,712 ) 26.23 $ 204,337 Canceled (97,440 ) 70.52 Outstanding at December 31, 2018 1,810,580 $ 46.55 5.30 $ 238,092 Vested and expected to vest as of December 31, 2018 1,804,158 $ 46.45 5.29 $ 237,425 Vested and exercisable as of December 31, 2018 1,319,851 $ 32.90 4.30 $ 191,580 Aggregate intrinsic value represents the difference between the estimated fair value of our common stock and the exercise price of outstanding, in-the-money options. The total intrinsic value of the options exercised was $157.8 million for the year ended December 31, 2016 . The weighted-average grant date fair value per share of options granted was $37.57 and $28.01 for the years ended December 31, 2017 and 2016 , respectively. No stock options were granted during the year ended December 31, 2018 . The total fair value of shares vested was $12.3 million , $11.8 million and $17.0 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Included in the number of options granted during the year ended December 31, 2017 are 396,720 options with both service and market-based vesting conditions. These options were granted to our Chief Executive Officer in connection with the commencement of his employment with us during the year. The fair values of the options granted and the corresponding derived service periods were calculated using a Monte Carlo simulation, which estimates the potential outcome of reaching the market condition based on simulated future stock prices. The stock-based compensation expense associated with these options is recorded on a graded vesting basis. As of December 31, 2018 , total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options was approximately $11.7 million . The weighted-average remaining vesting period of unvested stock options at December 31, 2018 was 2.32 years . RSUs A summary of RSU activity was as follows: Number of Shares Weighted Average Grant Date Fair Value (Per Share) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2016 12,222,282 $ 63.66 Granted 6,320,457 95.70 Vested (5,502,004 ) 60.79 $ 573,861 Forfeited (1,637,394 ) 72.69 Outstanding at December 31, 2017 11,403,341 81.50 Granted 5,302,586 160.08 Vested (5,485,868 ) 77.38 $ 931,848 Forfeited (1,018,399 ) 100.55 Outstanding at December 31, 2018 10,201,660 $ 121.84 $ 1,816,406 Expected to vest as of December 31, 2018 9,236,535 $ 1,644,565 RSUs outstanding as of December 31, 2018 comprise of 9,443,982 RSUs with only a service condition as well as 757,678 RSUs with both a service condition and a performance condition. RSUs granted with only service vesting criteria under and the 2012 Plan to employees generally vest over a four -year period. The total intrinsic value of the RSUs vested was $354.3 million for the year ended December 31, 2016 . Included in the RSU activity table above are shares with both service and performance-based vesting criteria that were granted to certain employees. The number of shares eligible to vest for these performance RSUs will depend upon achievement of a performance metric and are considered as eligible to vest when approved by the compensation committee of our board of directors in January of the year following the grant. The ultimate number of shares eligible to vest for performance RSUs range from 0% to 180% of the target number of shares depending on achievement relative to the performance metric over the applicable period. The shares granted in the year ended December 31, 2017 will primarily vest in four quarterly increments from August of the following year contingent on each holder’s continuous status as a service provider on the applicable vesting dates. The shares granted in the year ended December 31, 2018 will vest 33% in February 2019 and continue to vest quarterly for the remaining two subsequent years, contingent on each holder’s continuous status as a service provider on the applicable vesting dates. The number of RSUs granted in each year in the table above reflects the shares that could be eligible to vest at 100% of target for performance RSUs in each applicable period and includes adjustments for over or under achievement for performance RSUs granted in the prior year. We recognized $91.8 million , $40.5 million , and $36.1 million of stock-based compensation expense, net of actual and estimated forfeitures, associated with performance RSUs on a graded vesting basis during the year ended December 31, 2018 , 2017 , and 2016 , respectively. As of December 31, 2018 , total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested RSUs was approximately $871.4 million and the weighted-average remaining vesting period was 2.83 years |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We use the Black-Scholes options pricing model to estimate the fair value of our stock option grants. This model incorporates various assumptions including expected volatility, expected term, risk-free interest rates and expected dividend yields. The following assumptions were used for each respective period to calculate our stock-based compensation for each stock option grant on the date of the grant: Year Ended December 31, 2017 2016 Stock Options: Expected volatility 39% - 42% 41% - 42% Expected term (in years) 4.89 4.89 - 5.60 Risk-free interest rate 1.78% - 2.47% 1.18% - 1.87% Dividend yield — % — % No stock options were granted during the year ended December 31, 2018 . The following assumptions were used to calculate our stock-based compensation for each stock purchase right granted under the 2012 ESPP: Year Ended December 31, 2018 2017 2016 ESPP: Expected volatility 26% - 31% 28% - 49% 31% - 49% Expected term (in years) 0.50 0.50 0.50 Risk-free interest rate 1.15% - 2.22% 0.40% - 1.15% 0.17% - 0.47% Dividend yield — % — % — % Expected volatility . The expected volatility is based on the historical volatility of our common stock for a period similar to our expected term. Expected term . We determine the expected term for stock options based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. We estimate the expected term for ESPP using the purchase period. Risk-free interest rate . The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the stock-based award. Expected dividend yield |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share attributable to common stockholders is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, adjusted for the effects of dilutive shares of common stock, which are comprised of outstanding stock options, RSUs, ESPP obligations, the Notes and the Warrants. Stock awards with performance conditions are included in dilutive shares to the extent the performance condition is met. The dilutive potential shares of common stock are computed using the treasury stock method or the as-if converted method, as applicable. The effects of outstanding stock options, RSUs, ESPP obligations, Notes and Warrants are excluded from the computation of diluted net income (loss) per share in periods in which the effect would be antidilutive. The following tables present the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Year Ended December 31, 2018 2017 2016 *As Adjusted *As Adjusted Numerator: Net loss $ (26,704 ) $ (116,846 ) $ (414,249 ) Denominator: Weighted-average shares outstanding - basic and diluted 177,846,023 171,175,577 164,533,823 Net loss per share - basic and diluted $ (0.15 ) $ (0.68 ) $ (2.52 ) *As adjusted to reflect the impact of the full retrospective adoption of Topic 606. See Note 2 for further details. Potentially dilutive securities that are not included in the calculation of diluted net loss per share because doing so would be antidilutive are as follows: Year Ended December 31, 2018 2017 2016 Common stock options 1,810,580 3,369,732 5,818,435 Restricted stock units 10,201,660 11,403,341 12,222,282 ESPP obligations 317,940 361,688 366,529 2018 Notes — 7,782,946 7,783,023 2018 Warrants 7,783,023 7,783,023 7,783,023 2022 Notes 5,806,933 5,806,933 — 2022 Warrants 5,806,933 5,806,933 — Total potentially dilutive securities 31,727,069 42,314,596 33,973,292 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for (benefit from) income taxes consists of the following (in thousands): Year Ended December 31, 2018 2017 2016 *As Adjusted *As Adjusted Current provision: Federal $ (336 ) $ (445 ) $ (55 ) State 163 137 135 Foreign 22,204 9,512 5,098 22,031 9,204 5,178 Deferred provision: Federal (2,026 ) (5,934 ) (4,462 ) State (377 ) (886 ) (746 ) Foreign (31,948 ) 1,056 3,860 (34,351 ) (5,764 ) (1,348 ) Provision for (benefit from) income taxes $ (12,320 ) $ 3,440 $ 3,830 *As adjusted to reflect the impact of the full retrospective adoption of Topic 606. See Note 2 for further details. The components of loss before provision for income taxes by U.S. and foreign jurisdictions were as follows (in thousands): Year Ended December 31, 2018 2017 2016 *As Adjusted *As Adjusted United States (153,290 ) (61,259 ) (403,161 ) Foreign 114,266 (52,147 ) (7,258 ) Total $ (39,024 ) $ (113,406 ) $ (410,419 ) *As adjusted to reflect the impact of the full retrospective adoption of Topic 606. See Note 2 for further details. The effective income tax rate differs from the federal statutory income tax rate applied to the loss before provision for income taxes due to the following (in thousands): Year Ended December 31, 2018 2017 2016 *As Adjusted *As Adjusted Tax computed at U.S. federal statutory rate $ (8,195 ) $ (38,558 ) $ (139,542 ) State taxes, net of federal benefit 98 64 37 Tax rate differential for international subsidiaries (41,429 ) 23,532 8,020 Stock-based compensation (93,073 ) (116,953 ) (27,133 ) Tax credits (44,695 ) (21,038 ) (16,452 ) Foreign restructuring and amortization (625,292 ) 2,794 3,169 Non-deductible expenses 9,657 2,833 1,892 Tax effects associated with Topic 606 (23,073 ) 3,314 2,076 Other 408 607 896 Valuation allowance 813,274 146,845 170,867 Provision for income taxes $ (12,320 ) $ 3,440 $ 3,830 *As adjusted to reflect the impact of the full retrospective adoption of Topic 606. See Note 2 for further details. Significant components of our deferred tax assets are shown below (in thousands). A valuation allowance has been recognized to offset our deferred tax assets, as necessary, by the amount of any tax benefits that, based on evidence, are not expected to be realized. December 31, 2018 2017 *As Adjusted Deferred tax assets: Net operating loss carryforwards $ 610,314 $ 518,620 Accrued expenses 13,482 10,613 Credit carryforwards 120,594 75,879 Stock-based compensation 44,510 35,782 Note hedge 22,742 35,181 Depreciation and amortization 593,348 — Other 23,183 14,771 Total deferred tax assets 1,428,173 690,846 Less valuation allowance (1,337,350 ) (583,235 ) 90,823 107,611 Deferred tax liabilities: Depreciation and amortization (22,183 ) (20,708 ) Convertible notes (24,887 ) (43,616 ) Tax effects associated with Topic 606 (23,531 ) (53,601 ) Other (1,568 ) (1,759 ) Net deferred tax assets $ 18,654 $ (12,073 ) *As adjusted to reflect the impact of the full retrospective adoption of Topic 606. See Note 2 for further details. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which allows us to record provisional amounts for the Tax Act during a measurement period not to extend beyond one year of the enactment date, with further clarifications made recently with the issuance of ASU 2018-05. We have completed our accounting for the income tax effects of the Tax Act during the fourth quarter of fiscal year ended December 31, 2018, and did not have any significant adjustments to our provisional amounts. We have elected to record taxes associated with our GILTI as period costs if and when incurred. We determined that the unremitted earnings of our foreign subsidiaries will no longer be considered indefinitely reinvested, except in certain designated jurisdictions in which the resident entity is a service provider that is not expected to generate substantial amounts of cash in excess of what may be reinvested by the local entity. We have not provided for state income or withholding taxes on the undistributed earnings of foreign subsidiaries which are considered indefinitely invested outside of the U.S. The amount of unrecognized deferred tax liability on these undistributed earnings is not expected to be material at December 31, 2018 . As of December 31, 2018 , we had U.S. federal net operating loss and federal tax credit carryforwards of approximately $2.4 billion and $89.7 million , respectively. The federal tax credits and a portion of the federal net operating loss carryforwards will begin to expire in 2024 if not utilized. In addition, we had state net operating loss and state tax credit carryforwards of approximately $1.3 billion and $65.2 million , respectively. The state net operating loss will begin to expire in 2019 if not utilized, and the tax effected amount due to expire in 2019 is immaterial. State tax credits and a portion of the federal net operating loss carryforwards can be carried forward indefinitely. Utilization of our net operating loss and credit carryforwards may be subject to annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss and tax credit carryforwards before utilization. We maintain a full valuation allowance against our U.S. and certain foreign deferred tax assets as of December 31, 2018 . We regularly assess the need for a valuation allowance against our deferred tax assets. In making that assessment, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. Due to cumulative losses over recent years and based on all available evidence, we have determined that it is more likely than not that our U.S. and certain foreign deferred tax assets will not be realized as of December 31, 2018 . We have determined that $18.7 million related to deferred tax assets in certain foreign jurisdictions are realizable since the foreign entities have cumulative income and expected future income. The valuation allowance on our net deferred tax assets increased by $754.1 million , decreased by $106.9 million , and increased by $607.0 million during the years ended December 31, 2018 , 2017 , and 2016 , respectively. There have been no material releases of the valuation allowance. The 2018 change in the valuation allowance is primarily attributable to an increase in domestic net operating loss carryforwards primarily due to stock-based compensation expense, and an increase of approximately $590 million in deferred tax assets that are not realizable related to our foreign restructuring completed during 2018 giving rise to foreign amortizable assets. The 2017 change in valuation allowance was primarily attributable to remeasuring the U.S. net deferred tax assets at the applicable tax rate of 21% in accordance with the Tax Act, offset by increases in deferred tax assets primarily related to net operating losses. The 2016 change in valuation allowance was primarily attributable to an increase in net operating loss carryforwards and our early adoption of ASU 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” upon which previously unrecognized U.S. excess tax effects have been recorded as additional net operating loss carryforwards within our deferred tax asset. To the extent sufficient positive evidence becomes available, we may release a portion, or all, of our valuation allowance in one or more future periods. A release of the valuation allowance, if any, would result in the recognition of certain deferred tax assets and a material income tax benefit for the period in which such release is recorded. A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2018 2017 2016 Balance, beginning period $ 27,648 $ 18,440 $ 11,737 Tax positions taken in prior period: Gross increases 3,721 398 1,122 Gross decreases (2,896 ) — (50 ) Tax positions taken in current period: Gross increases 5,796 8,810 5,673 Gross decreases — — — Lapse of statute of limitations (1,078 ) — (42 ) Settlements (5,600 ) — — Balance, end of period $ 27,591 $ 27,648 $ 18,440 As of December 31, 2018 , we had gross unrecognized tax benefits of approximately $27.6 million , of which $4.7 million would impact the effective tax rate, if recognized. We recognize accrued interest and penalties related to unrecognized tax benefits as income tax expense. Accrued interest and penalties included in our liability related to unrecognized tax benefits were $0.3 million and $0.5 million at December 31, 2018 and 2017 , respectively. The amount of unrecognized tax benefits could be reduced upon expiration of the applicable statutes of limitations. The potential reduction in unrecognized tax benefits during the next 12 months is not expected to be material. Interest and penalties accrued on these uncertain tax positions are recognized as income tax expense and will be released upon the expiration of the statutes of limitations. These amounts are also not material for any periods presented. We are subject to taxation in the United States and foreign jurisdictions. As of December 31, 2018 , our tax years 2004 to 2017 remain subject to examination in most jurisdictions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases and Other Contractual Commitments For some of our offices and data centers, we have entered into non-cancelable operating lease agreements with various expiration dates. Rent expense associated with office space leases was $42.8 million , $39.7 million and $34.2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Payments for data center square footage as well as data center capacity for certain data centers, are primarily included in cost of revenues. These costs were $25.7 million , $22.5 million and $17.3 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Future minimum payments under our non-cancelable operating leases and other contractual commitments as of December 31, 2018 are presented in the table below (in thousands): Operating Leases Purchase Obligations (1) Other Total Years Ending December 31, 2019 $ 55,435 $ 55,875 $ 813 $ 112,123 2020 60,996 47,062 846 108,904 2021 63,348 26,340 862 90,550 2022 67,707 6,573 862 75,142 2023 72,491 1,896 360 74,747 Thereafter 578,874 2,631 — 581,505 Total $ 898,851 $ 140,377 $ 3,743 $ 1,042,971 (1) Consists of future minimum payments under non-cancelable purchase commitments related to our daily business operations. Not included in the table above are certain purchase commitments related to our future annual Knowledge user conferences and other customer or sales conferences to be held in 2020 and future years. If we had canceled these contractual commitments as of December 31, 2018 , we would have been obligated to pay cancellation penalties of approximately $18.5 million in aggregate. In May 2018, we entered into lease agreements related to the expansion and lease term extension of our existing Santa Clara headquarters office facility through 2035, for approximately 838,523 square feet of office space in aggregate, with three options to renew the lease for additional terms of five years each and a right of first offer to purchase these leased premises. Rent is paid on a monthly basis and will increase incrementally over the term of the lease for total minimum payments of approximately $566.5 million . In addition to the amounts above, the repayment of our 2022 Notes with an aggregate principal amount of $782.5 million is due on June 1, 2022. Refer to Note 11 for further information regarding our convertible senior notes. Letter of Credits As of December 31, 2018 , we had letters of credit in the aggregate amount of $22.6 million , primarily in connection with our customer contracts and operating leases. Legal Proceedings From time to time, we are party to litigation and other legal proceedings in the ordinary course of business. While the results of any litigation or other legal proceedings are uncertain, management does not believe the ultimate resolution of any pending legal matters is likely to have a material adverse effect on our financial position, results of operations or cash flows, except as discussed below. We accrue for loss contingencies when it is both probable that we will incur the loss and when we can reasonably estimate the amount of the loss or range of loss. Generally, our subscription agreements require us to defend our customers for third-party intellectual property infringement and other claims. Any adverse determination related to intellectual property claims or other litigation could prevent us from offering our services and adversely affect our financial condition and results of operations. On February 6, 2014, Hewlett-Packard Company (Hewlett-Packard) filed a lawsuit against us in the U.S. District Court for the Northern District of California. The lawsuit alleged patent infringement and sought damages and an injunction. On or about November 1, 2015, Hewlett Packard Enterprise Company (HPE) separated from Hewlett-Packard as an independent company, and Hewlett-Packard assigned to HPE all right, title, and interest in the eight Hewlett-Packard patents in the lawsuit and HPE was substituted as plaintiff in the litigation. On March 4, 2016, we entered into a confidential settlement agreement resolving the lawsuit with HPE (HPE Settlement). As a result, on March 9, 2016, the lawsuit was dismissed. BMC Software, Inc. (BMC) filed lawsuits against us in the U.S. District Court for the Eastern District of Texas on September 23, 2014 and February 12, 2016, and in the Dusseldorf (Germany) Regional Court, Patent Division, on March 2, 2016. Each of the lawsuits alleged patent infringement and sought damages and an injunction. On April 8, 2016, we entered into a confidential settlement agreement resolving all the lawsuits with BMC (BMC Settlement). As a result, the second Texas lawsuit was dismissed on April 14, 2016, and each of the initial Texas lawsuit and the German lawsuit was dismissed on April 25, 2016. Pursuant to the terms of the BMC Settlement, we paid BMC a settlement amount and agreed to a covenant not to sue one another for patent infringement for a specified period of time, after which time the agreement provides for certain procedures for resolving future patent disputes for a subsequent period of time. These settlements are considered multiple element arrangements for accounting purposes. We evaluated the accounting treatment of these settlements by identifying each element of the arrangements, which included amongst other elements, a release of past infringement claims and a covenant not to sue for a specified term of years. The primary benefit we received from the arrangements was the settlement and termination of all existing litigation, the avoidance of future litigation expenses and the avoidance of future management and customer disruptions. We determined that none of the elements of the settlement agreements have identifiable future benefits that would be capitalized as an asset. Accordingly, we recorded charges for aggregate legal settlements of $270.0 million |
Information about Geographic Ar
Information about Geographic Areas and Products | 12 Months Ended |
Dec. 31, 2018 | |
Segments, Geographical Areas [Abstract] | |
Information About Geographic Areas and Products | Information about Geographic Areas and Products Revenues by geographic area, based on the location of our users, were as follows for the periods presented (in thousands): Year Ended December 31, 2018 2017 2016 *As Adjusted *As Adjusted Revenues by geography North America (1) $ 1,725,255 $ 1,290,043 $ 948,079 EMEA (2) 654,677 475,411 339,317 Asia Pacific and other 228,884 153,040 103,589 Total revenues $ 2,608,816 $ 1,918,494 $ 1,390,985 *As adjusted to reflect the impact of the full retrospective adoption of Topic 606. See Note 2 for further details. Property and equipment, net by geographic area were as follows (in thousands): December 31, 2018 2017 Property and equipment, net: North America (3) $ 227,471 $ 164,040 EMEA (2) 82,526 50,028 Asia Pacific and other 37,219 31,056 Total property and equipment, net $ 347,216 $ 245,124 (1) Revenues attributed to the United States were approximately 94% of North America revenues for each of the years ended December 31, 2018 and 2017 , and 95% for the year ended December 31, 2016 . (2) Europe, the Middle East and Africa (EMEA) (3) Property and equipment, net attributed to the United States were approximately 76% and 89% of property and equipment, net attributable to North America for the years ended December 31, 2018 and 2017 , respectively. Subscription revenues consist of the following (in thousands): Year Ended December 31, 2018 2017 2016 *As Adjusted *As Adjusted Service management products $ 2,050,841 $ 1,526,125 $ 1,120,129 ITOM products 370,472 213,375 113,941 Total subscription revenues $ 2,421,313 $ 1,739,500 $ 1,234,070 *As adjusted to reflect the impact of the full retrospective adoption of Topic 606. See Note 2 for further details. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Principles of Consolidation | Principles of Consolidation |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Such management estimates and assumptions include, but are not limited to, the stand-alone selling price (SSP) for each distinct performance obligation included in customer contracts with multiple performance obligations, the period of benefit for deferred commissions, purchase price allocation for business combinations, stock-based compensation expenses, the assessment of the useful life and recoverability of our property and equipment, goodwill and identifiable intangible assets, fair value of convertible notes, income taxes and legal contingencies. Actual results could differ from those estimates. |
Segments | Segments |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions |
Derivatives Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities |
Allocation of Overhead Costs | Allocation of Overhead Costs |
Revenue Recognition | Revenue Recognition We report our revenues in two categories: (i) subscriptions and (ii) professional services and other. Revenues are recognized when control of these services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation Subscription revenues Subscription revenues are primarily comprised of subscription fees that give customers access to the ordered subscription service, related support and updates, if any, to the subscribed service during the subscription term. We recognize subscription revenues ratably over the contract term beginning on the commencement date of each contract, which is the date we make our services available to our customers. Our contracts with customers typically include a fixed amount of consideration and are generally non-cancelable and without any refund-type provisions. We typically invoice our customers annually in advance for our subscription services upon execution of the initial contract or subsequent renewal, and our invoices are typically due within 30 days from the invoice date. Subscription revenues also include revenues from self-hosted offerings in which customers deploy, or we grant customers the option to deploy without significant penalty, our subscription service internally or contract with a third party to host the software. For these contracts, we account for the software element and the related support and updates separately as they are distinct performance obligations. Refer to the discussion below related to contracts with multiple performance obligations for further details. The transaction price is allocated to separate performance obligations on a relative SSP basis. Transaction price allocated to the software element is recognized upon delivery, which is when transfer of control of the software to the customer is complete. The transaction price allocated to the related support and updates are recognized ratably over the contract term. Professional services and other revenues Our professional services arrangements are primarily on a time-and-materials basis, and revenues on these arrangements are recognized as the services are delivered. We typically invoice our customers monthly in arrears for these professional services based on actual hours and expenses incurred, and our invoices are typically due within 30 days from the invoice date. Some of our professional services arrangements are on a fixed fee or subscription basis, under which we recognize revenues on a proportional performance basis or ratably over the contract term. In instances where certain milestones are required to be met before revenues are recognized, we defer professional services revenues and the associated costs until milestone criteria have been met. Other revenues consist of fees from customer training delivered on-site or through publicly available classes. Contracts with multiple performance obligations We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. We evaluate the terms and conditions included within our customer contracts to ensure appropriate revenue recognition, including whether products and services are considered distinct performance obligations that should be accounted for separately versus together. For contracts with multiple performance obligations, the transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine SSP by considering the historical selling price of these performance obligations in similar transactions as well as other factors, including, but not limited to, competitive pricing of similar products, other software vendor pricing, industry publications and current pricing practices. Unbilled Receivables Unbilled receivables, which is a contract asset, represent subscription revenues that are recognized upon delivery of the software prior to being invoiced. Unbilled receivables are primarily presented under prepaid expenses and other current assets on our consolidated balance sheets. Deferred revenue Deferred revenue, which is a contract liability, consists primarily of payments received in advance of revenue recognition from our contracts with customers and is recognized as the revenue recognition criteria are met. Once our services are available to customers, we record amounts due in accounts receivable and in deferred revenue. To the extent we bill customers in advance of the billing period commencement date, the accounts receivable and corresponding deferred revenue amounts are netted to zero on our consolidated balance sheets, unless such amounts have been paid as of the balance sheet date. Customer deposits Customer deposits primarily relate to payments received from customers which could be refundable pursuant to the terms of the contract and are presented under “accrued expenses and other current liabilities” on our consolidated balance sheets. Deferred Commissions Deferred commissions are the incremental selling costs that are associated with acquiring customer contracts and consist primarily of sales commissions paid to our sales force and referral fees paid to independent third-parties. Capitalized sales commissions also include the associated payroll taxes and fringe benefit costs associated with payments to our sales employees to the extent they are incremental. Commissions and referral fees earned upon the execution of initial and expansion contracts are primarily deferred and amortized over a period of benefit that we have determined to be five years . Commissions earned upon the renewal of customer contracts are deferred and amortized over the average renewal term. Additionally, for self-hosted offerings, consistent with the recognition of subscription revenue for self-hosted offerings, a portion of the commission cost is expensed upfront when the self-hosted offering is made available. We determine the period of benefit by taking into consideration our customer contracts, our technology life cycle and other factors. We include amortization of deferred commissions in sales and marketing expense in our consolidated statements of comprehensive income (loss). There was no |
Fair Value Measurements | Fair Value Measurements We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized in the financial statements on a non-recurring basis or disclosed at fair value in the financial statements on a recurring basis. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We use a fair value hierarchy that is based on three levels of inputs, of which the first two are considered observable and the last unobservable. The three levels of the fair value hierarchy are as follows: Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access; Level 2—Inputs other than Level 1 that are directly or indirectly observable, such as quoted prices for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities, such as interest rates, yield curves and foreign currency spot rates; and |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Investments | Investments |
Strategic Investments | Strategic investments |
Accounts Receivable | Accounts Receivable |
Property and Equipment | Property and Equipment Property and equipment, net, are stated at cost, subject to review of impairment, and depreciated using the straight-line method over the estimated useful lives of the assets as follows: Building 39 years Computer equipment and software 3-5 years Furniture and fixtures 3-7 years Leasehold and other improvements shorter of the lease term or estimated useful life |
Capitalized Software Development Costs | Capitalized Software Development Costs Software development costs for software to be sold, leased, or otherwise marketed are expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the product is available for general release to customers and amortized over the estimated life of the product. Technological feasibility is established upon the completion of a working prototype that has been certified as having no critical bugs and is a release candidate. To date, costs and time incurred between the establishment of technological feasibility and product release have not been significant, and all software development costs have been charged to research and development expense in our consolidated statements of comprehensive income (loss). Costs incurred to develop our internal administration, finance and accounting systems are capitalized during the application development stage and generally amortized over the software’s estimated useful life of three to five years |
Leases | Leases Leases are reviewed and classified as capital or operating at their inception. Some of our lease agreements contain rent escalation, rent holidays, lease incentives and renewal options. Rent escalation and rent holidays are included in the determination of rent expenses to be recorded on a straight-line basis over the lease term. Unless determined to be landlord assets, lease incentives to pay for our costs or assets are recognized as a reduction of rent expense on a straight-line basis over the term of the lease. Renewals are not assumed in the determination of the lease term unless they are deemed to be reasonably assured at the inception of the lease. We begin recognizing rent expense on the date that we obtain the legal right to use and control the leased space. The difference between rent payments and straight-line rent expense is recorded as deferred rent in the consolidated balance sheets. Deferred rent that will be recognized during the ensuing 12 |
Business Combinations | Business combinations |
Goodwill, Intangible Assets and Other Long Lived Assets | Goodwill, Intangible Assets and Other Long-Lived Assets Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. We evaluate and test the recoverability of goodwill for impairment at least annually, during the fourth quarter, or more frequently if circumstances indicate that goodwill may not be recoverable. We perform the impairment testing by first assessing qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of its reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, we determine it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we perform a goodwill impairment test. To calculate any potential impairment, we compare the fair value of a reporting unit with its carrying amount, including goodwill. Any excess of the carrying amount of the reporting unit’s goodwill over its fair value is recognized as an impairment loss, and the carrying value of goodwill is written down. For purposes of goodwill impairment testing, we have one reporting unit. We periodically review the carrying amounts of long-lived assets, such as property and equipment, and purchased intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. We measure the recoverability of these assets by comparing the carrying amount of each asset to the future undiscounted cash flows we expect the asset to generate. If we consider any of these assets to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. In addition, we periodically evaluate the estimated remaining useful lives of long-lived assets to determine whether events or changes in circumstances warrant a revision to the remaining period of depreciation or amortization. Our intangible assets are amortized over their useful lives ranging from four years to ten years |
Advertising Costs | Advertising Costs Advertising costs, excluding costs related to our annual Knowledge user conference and other user forums, are expensed as incurred and are included in sales and marketing expense. These costs for the years ended December 31, 2018 , 2017 and 2016 were $65.2 million , $43.3 million and $32.0 million , respectively. Costs, net of proceeds related to our annual Knowledge user conference and other user forums, are deferred and expensed when the respective events occur. |
Convertible Senior Notes | Convertible Senior Notes In May and June 2017, we issued an aggregate of $782.5 million of 0% convertible senior notes (the 2022 Notes) and in November 2013, we issued $575.0 million of 0% |
Legal Contingencies | Legal Contingencies |
Stock-based Compensation | Stock-based Compensation We recognize compensation expense related to stock options and restricted stock units (RSUs) with only a service condition on a straight-line basis over the requisite service period, which is generally the vesting term of four years . For RSUs granted with both a service condition and a performance condition, the expenses are recognized on a graded vesting basis over the requisite service period of generally three years , after assessing the probability of achieving requisite performance criteria. This has the impact of greater stock-based compensation expense during the initial years of the vesting period as stock-based compensation cost is recognized over the requisite service period for each separately vesting tranche of the award as though the award were, in substance, multiple awards. We recognize compensation expense related to shares issued pursuant to the employee stock purchase plan (ESPP) on a straight-line basis over the six months |
Net Income (Loss) Per Share | Net Income (Loss) Per Share |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers Financial instruments potentially exposing us to credit risk consist primarily of cash, cash equivalents, derivative contracts, investments and accounts receivable. We hold cash at financial institutions that management believes are high credit, quality financial institutions and invest in securities with a minimum rating of BBB by Standard & Poor’s, Baa2 by Moody’s, or BBB by Fitch to minimize our credit risks. Our derivative contracts expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the arrangement. We mitigate this credit risk by transacting with major financial institutions with high credit ratings and entering into master netting arrangements, which permit net settlement of transactions with the same counterparty. While the contract or notional amount is often used to express the volume of foreign currency derivative contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed the obligations of the Company to the counterparties. We are not required to pledge, and are not entitled to receive, cash collateral related to these derivative instruments. We are also exposed to credit risk under the convertible note hedge transactions that may result from counterparties’ non-performance. Credit risk arising from accounts receivable is mitigated due to our large number of customers and their dispersion across various industries and geographies. As of December 31, 2018 and 2017 , there were no customers that represented more than 10% of our accounts receivable balance. There were no customers that individually exceeded 10% of our total revenues in any of the periods presented. For purposes of assessing concentration of credit risk and significant customers, a group of customers under common control or customers that are affiliates of each other are regarded as a single customer. |
Warranties and Indemnification | Warranties and Indemnification Our cloud computing solutions are typically warranted to perform in material conformance with their specifications. We include service level commitments to our customers that permit those customers to receive credits in the event we fail to meet those service levels. We establish an accrual based on an evaluation of the known service disruptions. Service level credit accrual charges are recorded against revenue and were not material for all periods presented. We have also agreed to indemnify our directors, executive officers and certain other officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by us, arising out of that person’s services as a director or officer of our company or that person’s services provided to any other company or enterprise at our request. We maintain director and officer insurance coverage that may enable us to recover a portion of any future amounts paid. The fair values of these obligations are not material as of each balance sheet date. |
Income Taxes | Income Taxes We use the asset and liability method of accounting for income taxes, in which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be reversed. We recognize the effect on deferred tax assets and liabilities of a change in tax rates within the provision for income taxes as income and expense in the period that includes the enactment date. A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. In determining the need for a valuation allowance, we consider future growth, forecasted earnings, future taxable income, the mix of earnings in the jurisdictions in which we operate, historical earnings, taxable income in prior years, if carryback is permitted under the law, carryforward periods and prudent and feasible tax planning strategies. Our tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. We recognize the tax benefit of an uncertain tax position only if it is more likely than not the position is sustainable upon examination by the taxing authority, based on the technical merits. We measure the tax benefit recognized as the largest amount of benefit which is more likely than not to be realized upon settlement with the taxing authority. We recognize interest accrued and penalties related to unrecognized tax benefits in our tax provision. |
New Accounting Pronouncements Adopted in 2018 and Recent Accounting Pronouncements | New Accounting Pronouncements Pending Adoption Cloud computing arrangements implementation costs In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard requires capitalized costs to be amortized on a straight-line basis generally over the term of the arrangement, and the financial statement presentation for these capitalized costs would be the same as that of the fees related to the hosting arrangements. This new standard is effective for our interim and annual periods beginning January 1, 2020 and earlier adoption is permitted. This standard could be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are evaluating the timing and impact of our pending adoption of this standard on our consolidated financial statements. Credit losses In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. For trade receivables, loans, and other financial instruments, we will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. This new standard is effective for our interim and annual periods beginning January 1, 2020. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which requires lessees to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets, and to recognize on the income statement the expenses in a manner similar to current practice. This new standard, including related amendments subsequently issued by the FASB, is effective for our interim and annual periods beginning January 1, 2019. We intend to elect the package of transition expedients and the transition option that allows us not to restate the comparative periods in our financial statements in the year of adoption. In addition, for our office facility leases, we intend to elect to account for lease and non-lease components as a single lease component. We also intend to make an accounting policy election not to record leases that, at the lease commencement date, have a lease term of 12 months or less on the balance sheet. We have substantially completed our review of existing vendor arrangements for embedded leases and we expect that all of our operating leases disclosed in Note 18 will be subject to the new standard. The present value of these operating lease commitments will be recognized as right-of-use assets and lease liabilities at the later to occur of (i) the adoption date of January 1, 2019 or (ii) the time we take possession of the leased asset, which will have a material impact on our consolidated balance sheet. We have made significant progress in validating the accuracy of new Topic 842 reports generated from our existing lease accounting system, and are in the process of finalizing our accounting policy and disclosures. We expect the adoption of this standard to result in the recognition of total right-of-use assets of approximately $330 million and total lease liabilities of approximately $360 million Fair Value Measurement In August 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement,” which modifies the disclosure requirements on fair value measurements. This new standard is effective for our interim and annual periods beginning January 1, 2020, and earlier adoption is permitted. We early adopted this new standard upon its issuance, and because it only relates to qualitative financial disclosures, it did not impact our previously reported financial statements for periods ended on or prior to December 31, 2017. Stock-based Compensation In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting,” which is intended to reduce cost and complexity and to improve financial reporting for nonemployee share-based payments. Currently, the accounting requirements for nonemployee and employee share-based payment transactions are significantly different. This standard expands the scope of Topic 718 to include share-based payments issued to nonemployees for goods or services, aligning the accounting for share-based payments to nonemployees and employees. This standard is effective for our fiscal year beginning January 1, 2019 and early adoption is permitted. We early adopted this new standard effective January 1, 2018, and the adoption of this standard did not have a material impact on our consolidated financial statements. Income Taxes In February 2018, the FASB issued ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which provides entities the option to reclassify tax effects stranded in accumulated other comprehensive income as a result of the 2017 Tax Cuts and Jobs Act (the Tax Act) to retained earnings. This standard is effective for our fiscal year beginning January 1, 2019 and early adoption is permitted. We early adopted this new standard effective January 1, 2018, with an immaterial amount of cumulative effect adjustment recorded to our opening accumulated deficit as of January 1, 2018. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which allows us to record provisional amounts for the 2017 Tax Cuts and Jobs Act (the Tax Act) during a measurement period not to extend beyond one year of the enactment date, with further clarifications made recently with the issuance of ASU 2018-05. We have completed our accounting for the income tax effects of the Tax Act during the year ended December 31, 2018, and did not have any significant adjustments to our provisional amounts. We have elected to record taxes associated with our global intangible low-taxed income (GILTI) as period costs if and when incurred. We determined that the unremitted earnings of our foreign subsidiaries will no longer be considered indefinitely reinvested, except in certain designated jurisdictions in which the resident entity is a service provider that is not expected to generate substantial amounts of cash in excess of what may be reinvested by the local entity. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory,” which includes a revision in the accounting for the income tax consequences of intra-entity transfers of assets other than inventory to reduce the complexity in accounting standards. We adopted this new standard as of January 1, 2018 with an immaterial amount of cumulative effect adjustment recorded to our opening accumulated deficit as of January 1, 2018. Financial Instruments In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments, with further clarifications made more recently. This new standard requires equity securities to be measured at fair value with changes in fair value recognized through the statement of operations, which may result in greater variability in our net income (loss). We adopted these new standards as of January 1, 2018 with a cumulative-effect adjustment, net of tax of $7.2 million recorded to our opening accumulated deficit as of January 1, 2018. This adjustment relates to the unrealized gain on our marketable equity securities as of December 31, 2017, which was previously included in accumulated other comprehensive income (loss) on our consolidated balance sheet. As part of the adoption, we elected to apply the measurement alternative for our non-marketable equity investments that do not have readily determinable fair values, measuring them at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The adoption of these standards did not result in an adjustment for our non-marketable equity investments as our measurement alternative election requires adjustments to be recorded only on a prospective basis. Revenue from Contracts with Customers In May 2014, the FASB issued Topic 606, which supersedes the prior revenue recognition standard (Topic 605). Under Topic 606, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to be entitled to in exchange for those goods or services. In addition, this standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Topic 606 also includes Subtopic 340-40, Other Assets and Deferred Costs—Contracts with Customers, which requires the deferral of incremental costs of obtaining a contract with a customer. The Topic 606 standard permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method) or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application (modified retrospective method). We adopted the requirements of Topic 606 as of January 1, 2018, utilizing a full retrospective method. The most significant impact of the standard relates to the timing of revenue recognition related to self-hosted offerings, in which customers deploy, or we grant customers the option to deploy without significant penalty, our software internally or contract with a third party to host the software, the accounting for incremental selling costs to obtain a contract, and the classification of proceeds for our annual Knowledge user conference and other user forums as a reduction in sales and marketing expenses instead of as professional services and other revenues. Under Topic 606, for self-hosted offerings, the requirement to have vendor specific objective evidence (VSOE) for undelivered elements was eliminated. As a result, for all periods presented, we have recognized as subscription revenues a portion of the sales price upon delivery of the software, compared to the prior practice under Topic 605 of recognizing the entire sales price ratably over an estimated subscription period due to the lack of VSOE. To the extent the amounts recognized as subscription revenues have not been billed, the revenues are primarily recorded as “unbilled receivables.” In addition, refundable amounts associated with customer contracts are recorded as “customer deposits.” In addition, under Topic 606, for all periods presented, we have deferred all incremental selling costs (primarily commissions) to obtain customer contracts, including indirect costs that are not tied to a specific contract, for both self-hosted offerings and cloud-based subscription offerings. On initial contracts and contracts for increased purchases with existing customers (expansion contracts), these costs are primarily amortized over a period of benefit that we have determined to be five years . On renewal contracts, these costs are amortized over the renewal term. Additionally, for self-hosted offerings, consistent with the recognition of subscription revenues for self-hosted offerings as described above, a portion of the commission cost is expensed upfront when the self-hosted offering is made available. Our prior policy under Topic 605 was to defer only direct and incremental commission costs to obtain a contract and amortize those costs over the contract term, which was generally 12 to 36 months , for both self-hosted offerings and cloud-based subscription offerings. As part of our adoption of Topic 606, during the year ended December 31, 2018 , we recorded a decrease in sales and marketing expenses and a corresponding increase in our deferred commissions asset of $5.4 million . This adjustment reflects the correction of previously undercapitalized incremental fringe benefit costs associated with sales commissions that were paid since 2012. We concluded that these adjustments were not material to the current period or any previously reported periods presented, as adjusted for the full retrospective adoption of Topic 606. The direct effect on income taxes resulting from the full retrospective adoption of the above-mentioned changes to revenues and commission expenses resulted in a cumulative income tax expense of $23.3 million recorded in the prior periods through December 31, 2017. The indirect tax benefit of Topic 606 on income taxes associated with intercompany adjustments of $23.1 million , or $0.13 per basic and diluted share for the year ended December 31, 2018 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Property and Equipment Useful Life | Property and equipment, net, are stated at cost, subject to review of impairment, and depreciated using the straight-line method over the estimated useful lives of the assets as follows: Building 39 years Computer equipment and software 3-5 years Furniture and fixtures 3-7 years Leasehold and other improvements shorter of the lease term or estimated useful life Property and equipment, net consists of the following (in thousands): December 31, 2018 2017 Computer equipment $ 493,536 $ 326,378 Computer software 58,303 46,413 Leasehold and other improvements 74,721 56,232 Furniture and fixtures 42,551 38,789 Building 6,551 7,084 Construction in progress 10,167 5,341 685,829 480,237 Less: Accumulated depreciation (338,613 ) (235,113 ) Total property and equipment, net $ 347,216 $ 245,124 |
Changes in Allowance for Doubtful Accounts | The following table presents the changes in the allowance for doubtful accounts (in thousands): Balance at Beginning of Year Additions (Deductions): Charged to Operations Additions (Deductions): Charged to Deferred Revenue Less: Write-offs Balance at End of Year Year ended December 31, 2018 Allowance for doubtful accounts $ 3,115 1,255 1,177 898 $ 4,649 Year ended December 31, 2017 Allowance for doubtful accounts $ 2,323 1,688 194 1,090 $ 3,115 Year ended December 31, 2016 Allowance for doubtful accounts $ 1,179 2,219 (391 ) 684 $ 2,323 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principals | The table below provides specified line items from our consolidated balance sheet (i) as previously reported and (ii) as adjusted to reflect the impact of the full retrospective adoption of Topic 606 (in thousands): Year Ended December 31, 2017 As Reported As Adjusted Assets Accounts receivable, net $ 434,895 $ 437,051 Current portion of deferred commissions 118,690 109,643 Prepaid expenses and other current assets 77,681 95,959 Deferred commissions, less current portion 85,530 224,252 Other assets 49,600 51,832 Liabilities Accrued expenses and other current liabilities 244,605 253,257 Current portion of deferred revenue 1,280,499 1,210,695 Deferred revenue, less current portion 39,884 36,120 Other long-term liabilities 43,239 65,884 Stockholder’s equity Accumulated other comprehensive (loss) income (889 ) 5,767 Accumulated deficit (1,146,520 ) (958,564 ) Year Ended December 31, 2017 2016 As Reported As Adjusted As Reported As Adjusted Revenues: Subscription and software $ 1,739,795 $ 1,739,500 $ 1,221,639 $ 1,234,070 Professional services and other 193,231 178,994 168,874 156,915 Total revenues 1,933,026 1,918,494 1,390,513 1,390,985 Cost of revenues: Professional services and other 184,202 184,292 163,268 163,581 Total cost of revenues 499,772 499,862 398,682 398,995 Gross profit 1,433,254 1,418,632 991,831 991,990 Operating expenses: Sales and marketing 946,617 894,977 700,464 659,983 Total operating expenses 1,534,668 1,483,028 1,414,639 1,374,158 Loss from operations (101,414 ) (64,396 ) (422,808 ) (382,168 ) Interest income and other income (expense), net 5,804 4,384 6,035 5,027 Loss before income taxes (149,004 ) (113,406 ) (450,051 ) (410,419 ) Provision for income taxes 126 3,440 1,753 3,830 Net loss $ (149,130 ) $ (116,846 ) $ (451,804 ) $ (414,249 ) Net loss per share - basic and diluted $ (0.87 ) $ (0.68 ) $ (2.75 ) $ (2.52 ) Weighted-average shares used to compute net loss per share - basic and diluted 171,175,577 171,175,577 164,533,823 164,533,823 Year Ended December 31, 2017 2016 As Reported As Adjusted As Reported As Adjusted Cash flows from operating activities: Net loss $ (149,130 ) $ (116,846 ) $ (451,804 ) $ (414,249 ) Adjustments to reconcile net loss to net cash provided by operating activities: Amortization of deferred commissions 115,262 99,105 81,217 69,565 Deferred income tax (9,078 ) (5,724 ) (3,424 ) (658 ) Changes in operating assets and liabilities, net of effect of business combinations: Accounts receivable (98,432 ) (99,693 ) (125,106 ) (126,415 ) Deferred commissions (174,503 ) (190,246 ) (136,459 ) (151,921 ) Prepaid expenses and other assets (46,138 ) (34,288 ) (21,500 ) (24,164 ) Deferred revenue 381,562 369,242 300,167 285,139 Accrued expenses and other liabilities 68,344 66,526 82,681 87,560 Net cash provided by operating activities 642,825 642,940 159,921 159,081 Foreign currency effect on cash, cash equivalents and restricted cash 28,128 28,013 (6,785 ) (5,945 ) |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Abstract] | |
Summary of Investments | The following is a summary of our available-for-sale investment securities, excluding marketable equity securities and those securities classified within cash and cash equivalents on the consolidated balance sheets (in thousands): December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities: Commercial paper $ 108,061 $ — $ — $ 108,061 Corporate notes and bonds 1,233,589 343 (4,218 ) 1,229,714 Certificates of deposit 73,584 1 — 73,585 U.S. government and agency securities 102,549 23 (358 ) 102,214 Total available-for-sale securities $ 1,517,783 $ 367 $ (4,576 ) $ 1,513,574 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities: Commercial paper $ 258,348 $ 1 $ (5 ) $ 258,344 Corporate notes and bonds 1,006,302 26 (3,084 ) 1,003,244 Certificates of deposit 33,084 — — 33,084 U.S. government and agency securities 129,494 — (638 ) 128,856 Total available-for-sale securities $ 1,427,228 $ 27 $ (3,727 ) $ 1,423,528 |
Investments Classified by Contractual Maturity Date | The fair values of available-for-sale investment securities, by remaining contractual maturity, are as follows (in thousands): December 31, 2018 Due within 1 year $ 931,718 Due in 1 year through 5 years 581,856 Total $ 1,513,574 |
Fair Values and Gross Unrealized Losses of Available-for-Sale Securities Aggregated by Investment Category | The following table shows the fair values and the gross unrealized losses of these securities, classified by the length of time that the securities have been in a continuous unrealized loss position, and aggregated by investment types, excluding those securities classified within cash and cash equivalents on the consolidated balance sheets (in thousands): December 31, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate notes and bonds $ 714,605 $ (2,603 ) $ 294,956 $ (1,615 ) $ 1,009,561 $ (4,218 ) Certificates of deposit 1,000 — — — 1,000 — U.S. government and agency securities 11,756 (5 ) 61,457 (353 ) 73,213 (358 ) Total $ 727,361 $ (2,608 ) $ 356,413 $ (1,968 ) $ 1,083,774 $ (4,576 ) December 31, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Commercial paper $ 14,809 $ (5 ) $ — $ — $ 14,809 $ (5 ) Corporate notes and bonds 819,113 (2,703 ) 141,874 (381 ) 960,987 (3,084 ) U.S. government and agency securities 106,301 (593 ) 22,555 (45 ) 128,856 (638 ) Total $ 940,223 $ (3,301 ) $ 164,429 $ (426 ) $ 1,104,652 $ (3,727 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of December 31, 2018 (in thousands): Level 1 Level 2 Total Cash equivalents: Money market funds $ 229,047 $ — $ 229,047 Commercial paper — 16,961 16,961 Certificates of deposit — 2,465 2,465 Short-term investments: Commercial paper — 108,061 108,061 Corporate notes and bonds — 679,542 679,542 Certificates of deposit — 56,596 56,596 U.S. government and agency securities — 87,519 87,519 Long-term investments: Corporate notes and bonds — 550,172 550,172 Certificates of deposit — 16,989 16,989 U.S. government and agency securities — 14,695 14,695 Total $ 229,047 $ 1,533,000 $ 1,762,047 The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of December 31, 2017 (in thousands): Level 1 Level 2 Total Cash equivalents: Money market funds $ 282,507 $ — $ 282,507 Commercial paper — 100,456 100,456 Corporate notes and bonds — 50,437 50,437 Short-term investments: Commercial paper — 258,344 258,344 Corporate notes and bonds — 688,316 688,316 Certificates of deposit — 17,950 17,950 U.S. government and agency securities — 67,476 67,476 Marketable equity securities 20,717 — 20,717 Long-term investments: Corporate notes and bonds — 314,928 314,928 Certificates of deposit — 15,134 15,134 U.S. government and agency securities — 61,380 61,380 Total $ 303,224 $ 1,574,421 $ 1,877,645 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | The following table summarizes the allocation of the purchase price to the fair value of the tangible and intangible assets acquired and liabilities assumed as of the acquisition date: Purchase Price Allocation (in thousands) Useful Life (in years) Net tangible assets acquired $ 675 Intangible assets: Developed technology 15,600 5 Goodwill (2) 19,386 Net deferred tax liabilities (1) (3,341 ) Total purchase price $ 32,320 (1) Deferred tax liabilities, net primarily relates to purchased identifiable intangible assets and is shown net of deferred tax assets. (2) The goodwill balance for this business combination is not deductible for income tax purposes. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill balances are presented below (in thousands): Carrying Amount Balance as of December 31, 2016 $ 82,534 Goodwill acquired 39,668 Foreign currency translation adjustments 6,526 Balance as of December 31, 2017 128,728 Goodwill acquired 26,063 Foreign currency translation adjustments (5,946 ) Balance as of December 31, 2018 $ 148,845 |
Schedule of Intangible Assets | Intangible assets consist of the following (in thousands): December 31, December 31, 2018 2017 Developed technology $ 114,395 $ 102,349 Patents 57,180 31,030 Other 650 1,575 Total intangible assets 172,225 134,954 Less: accumulated amortization (71,643 ) (48,038 ) Net carrying amount $ 100,582 $ 86,916 |
Expected Future Amortization Expense Related to Intangible Assets | The following table presents the estimated future amortization expense related to intangible assets held at December 31, 2018 (in thousands): Years Ending December 31, 2019 $ 29,037 2020 19,447 2021 17,521 2022 13,608 2023 7,739 Thereafter 13,230 Total future amortization expense $ 100,582 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, are stated at cost, subject to review of impairment, and depreciated using the straight-line method over the estimated useful lives of the assets as follows: Building 39 years Computer equipment and software 3-5 years Furniture and fixtures 3-7 years Leasehold and other improvements shorter of the lease term or estimated useful life Property and equipment, net consists of the following (in thousands): December 31, 2018 2017 Computer equipment $ 493,536 $ 326,378 Computer software 58,303 46,413 Leasehold and other improvements 74,721 56,232 Furniture and fixtures 42,551 38,789 Building 6,551 7,084 Construction in progress 10,167 5,341 685,829 480,237 Less: Accumulated depreciation (338,613 ) (235,113 ) Total property and equipment, net $ 347,216 $ 245,124 |
Derivative Contracts (Tables)
Derivative Contracts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The fair values of these outstanding derivative contracts as of December 31, 2018 were as follows (in thousands): Consolidated Balance Sheet Location December 31, 2018 Derivative Assets: Foreign currency derivative contracts Prepaid expenses and other current assets $ 22,831 Derivative Liabilities Foreign currency derivative contracts Accrued expenses and other current liabilities $ 2,441 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities, Current [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in thousands): December 31, 2018 2017 *As Adjusted Accrued payroll $ 158,006 $ 130,400 Taxes payable 35,122 25,617 Other employee related liabilities 60,889 44,284 Other 76,229 52,956 Total accrued expenses and other current liabilities $ 330,246 $ 253,257 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Convertible Notes Payable [Abstract] | |
Convertible Debt | The Notes consisted of the following (in thousands): December 31, 2018 December 31, 2017 Liability component: Principal: 2022 Notes $ 782,500 $ 782,500 2018 Notes — 574,994 Less: debt issuance cost and debt discount, net of amortization 2022 Notes (120,793 ) (152,482 ) 2018 Notes — (31,576 ) Net carrying amount $ 661,707 $ 1,173,436 2022 Notes 2018 Notes Equity component recorded at issuance: Note $ 162,039 $ 155,319 Issuance cost (2,148 ) (3,257 ) Net amount recorded in equity $ 159,891 $ 152,062 Convertible Date Initial Conversion Price per Share Initial Conversion Rate per $1,000 Par Value Initial Number of Shares 2022 Notes February 1, 2022 $ 134.75 7.42 shares 5,806,936 2018 Notes July 1, 2018 $ 73.88 13.54 shares 7,783,023 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The estimated fair values of the Notes at December 31, 2018 and December 31, 2017 based on the closing trading price per $100 of the Notes were as follows (in thousands): December 31, 2018 December 31, 2017 2022 Notes $ 1,105,281 897,778 2018 Notes $ — $ 1,015,554 |
Interest Income and Interest Expense Disclosure | The following table sets forth total interest expense recognized related to the Notes (in thousands): Year Ended December 31, 2018 2017 2016 Amortization of debt issuance cost 2022 Notes $ 1,531 $ 860 $ — 2018 Notes 1,131 1,911 1,785 Amortization of debt discount 2022 Notes 30,159 16,921 — 2018 Notes 19,912 33,702 31,493 Total $ 52,733 $ 53,394 $ 33,278 Effective interest rate of the liability component 2022 Notes 4.75% 2018 Notes 6.50% |
Schedule Of Note Hedge Transactions | Purchase Shares (in thousands) 2022 Note Hedge $ 128,017 5,806,936 2018 Note Hedge $ 135,815 7,783,023 |
Schedule of Warrants | Proceeds Shares Strike Price First Expiration Date (in thousands) 2022 Warrants $ 54,071 5,806,936 $ 203.40 September 1, 2022 2018 Warrants $ 84,525 7,783,023 $ 107.46 February 1, 2019 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive income (loss) consist of the following (in thousands): December 31, 2018 2017 *As Adjusted Foreign currency translation adjustment $ 344 $ 2,246 Net unrealized gain (loss) on investments, net of tax (1) (4,379 ) 3,521 Accumulated other comprehensive income (loss) $ (4,035 ) $ 5,767 (1) The net unrealized gain (loss) on investments as of December 31, 2018 includes a cumulative-effect adjustment, net of tax of $7.2 million resulting from our adoption of ASU 2016-01. See Note 2 for further details. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Common Stock Outstanding and Reserved Shares of Common Stock for Future Issuance | As of December 31, 2018 , we had 180,175,355 shares of common stock outstanding and had reserved shares of common stock for future issuance as follows: December 31, 2018 Stock plans: Options outstanding 1,810,580 RSUs (1) 10,201,660 Stock awards available for future grants: 2012 Equity Incentive Plan (2) 31,999,234 2012 Employee Stock Purchase Plan (2) 10,714,423 Total reserved shares of common stock for future issuance 54,725,897 (1) Represents the number of shares issuable upon settlement of outstanding RSUs and performance RSUs, assuming 100% of the target number of shares for performance RSUs, as discussed under the section entitled “RSUs” in Note 14. (2) Refer to Note 14 for a description of these plans. |
Equity Awards (Tables)
Equity Awards (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Information About Outstanding And Vested Stock Options | A summary of stock option activity was as follows: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2016 5,818,435 $ 20.57 Granted 616,720 86.33 Exercised (2,970,914 ) 12.44 $ 277,670 Canceled (94,509 ) 68.88 Outstanding at December 31, 2017 3,369,732 38.43 Exercised (1,461,712 ) 26.23 $ 204,337 Canceled (97,440 ) 70.52 Outstanding at December 31, 2018 1,810,580 $ 46.55 5.30 $ 238,092 Vested and expected to vest as of December 31, 2018 1,804,158 $ 46.45 5.29 $ 237,425 Vested and exercisable as of December 31, 2018 1,319,851 $ 32.90 4.30 $ 191,580 |
Restricted Stock Unit Table | A summary of RSU activity was as follows: Number of Shares Weighted Average Grant Date Fair Value (Per Share) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2016 12,222,282 $ 63.66 Granted 6,320,457 95.70 Vested (5,502,004 ) 60.79 $ 573,861 Forfeited (1,637,394 ) 72.69 Outstanding at December 31, 2017 11,403,341 81.50 Granted 5,302,586 160.08 Vested (5,485,868 ) 77.38 $ 931,848 Forfeited (1,018,399 ) 100.55 Outstanding at December 31, 2018 10,201,660 $ 121.84 $ 1,816,406 Expected to vest as of December 31, 2018 9,236,535 $ 1,644,565 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |
Estimated Weighted-average Fair Value per Share of Options Granted | The following assumptions were used for each respective period to calculate our stock-based compensation for each stock option grant on the date of the grant: Year Ended December 31, 2017 2016 Stock Options: Expected volatility 39% - 42% 41% - 42% Expected term (in years) 4.89 4.89 - 5.60 Risk-free interest rate 1.78% - 2.47% 1.18% - 1.87% Dividend yield — % — % |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The following assumptions were used to calculate our stock-based compensation for each stock purchase right granted under the 2012 ESPP: Year Ended December 31, 2018 2017 2016 ESPP: Expected volatility 26% - 31% 28% - 49% 31% - 49% Expected term (in years) 0.50 0.50 0.50 Risk-free interest rate 1.15% - 2.22% 0.40% - 1.15% 0.17% - 0.47% Dividend yield — % — % — % |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Income (Loss) Per Share | The following tables present the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Year Ended December 31, 2018 2017 2016 *As Adjusted *As Adjusted Numerator: Net loss $ (26,704 ) $ (116,846 ) $ (414,249 ) Denominator: Weighted-average shares outstanding - basic and diluted 177,846,023 171,175,577 164,533,823 Net loss per share - basic and diluted $ (0.15 ) $ (0.68 ) $ (2.52 ) |
Summary of Potentially Dilutive Securities | Potentially dilutive securities that are not included in the calculation of diluted net loss per share because doing so would be antidilutive are as follows: Year Ended December 31, 2018 2017 2016 Common stock options 1,810,580 3,369,732 5,818,435 Restricted stock units 10,201,660 11,403,341 12,222,282 ESPP obligations 317,940 361,688 366,529 2018 Notes — 7,782,946 7,783,023 2018 Warrants 7,783,023 7,783,023 7,783,023 2022 Notes 5,806,933 5,806,933 — 2022 Warrants 5,806,933 5,806,933 — Total potentially dilutive securities 31,727,069 42,314,596 33,973,292 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | The provision for (benefit from) income taxes consists of the following (in thousands): Year Ended December 31, 2018 2017 2016 *As Adjusted *As Adjusted Current provision: Federal $ (336 ) $ (445 ) $ (55 ) State 163 137 135 Foreign 22,204 9,512 5,098 22,031 9,204 5,178 Deferred provision: Federal (2,026 ) (5,934 ) (4,462 ) State (377 ) (886 ) (746 ) Foreign (31,948 ) 1,056 3,860 (34,351 ) (5,764 ) (1,348 ) Provision for (benefit from) income taxes $ (12,320 ) $ 3,440 $ 3,830 |
Components of Loss From Continuing Operations Before Income Taxes | The components of loss before provision for income taxes by U.S. and foreign jurisdictions were as follows (in thousands): Year Ended December 31, 2018 2017 2016 *As Adjusted *As Adjusted United States (153,290 ) (61,259 ) (403,161 ) Foreign 114,266 (52,147 ) (7,258 ) Total $ (39,024 ) $ (113,406 ) $ (410,419 ) |
Reconciliation of Federal Income Tax Rate | The effective income tax rate differs from the federal statutory income tax rate applied to the loss before provision for income taxes due to the following (in thousands): Year Ended December 31, 2018 2017 2016 *As Adjusted *As Adjusted Tax computed at U.S. federal statutory rate $ (8,195 ) $ (38,558 ) $ (139,542 ) State taxes, net of federal benefit 98 64 37 Tax rate differential for international subsidiaries (41,429 ) 23,532 8,020 Stock-based compensation (93,073 ) (116,953 ) (27,133 ) Tax credits (44,695 ) (21,038 ) (16,452 ) Foreign restructuring and amortization (625,292 ) 2,794 3,169 Non-deductible expenses 9,657 2,833 1,892 Tax effects associated with Topic 606 (23,073 ) 3,314 2,076 Other 408 607 896 Valuation allowance 813,274 146,845 170,867 Provision for income taxes $ (12,320 ) $ 3,440 $ 3,830 |
Reconciliation of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets are shown below (in thousands). A valuation allowance has been recognized to offset our deferred tax assets, as necessary, by the amount of any tax benefits that, based on evidence, are not expected to be realized. December 31, 2018 2017 *As Adjusted Deferred tax assets: Net operating loss carryforwards $ 610,314 $ 518,620 Accrued expenses 13,482 10,613 Credit carryforwards 120,594 75,879 Stock-based compensation 44,510 35,782 Note hedge 22,742 35,181 Depreciation and amortization 593,348 — Other 23,183 14,771 Total deferred tax assets 1,428,173 690,846 Less valuation allowance (1,337,350 ) (583,235 ) 90,823 107,611 Deferred tax liabilities: Depreciation and amortization (22,183 ) (20,708 ) Convertible notes (24,887 ) (43,616 ) Tax effects associated with Topic 606 (23,531 ) (53,601 ) Other (1,568 ) (1,759 ) Net deferred tax assets $ 18,654 $ (12,073 ) |
Reconciliation of Beginning and Ending Balance of Total Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2018 2017 2016 Balance, beginning period $ 27,648 $ 18,440 $ 11,737 Tax positions taken in prior period: Gross increases 3,721 398 1,122 Gross decreases (2,896 ) — (50 ) Tax positions taken in current period: Gross increases 5,796 8,810 5,673 Gross decreases — — — Lapse of statute of limitations (1,078 ) — (42 ) Settlements (5,600 ) — — Balance, end of period $ 27,591 $ 27,648 $ 18,440 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments Under Non-cancelable Operating Leases and Other Contractual Commitments | Future minimum payments under our non-cancelable operating leases and other contractual commitments as of December 31, 2018 are presented in the table below (in thousands): Operating Leases Purchase Obligations (1) Other Total Years Ending December 31, 2019 $ 55,435 $ 55,875 $ 813 $ 112,123 2020 60,996 47,062 846 108,904 2021 63,348 26,340 862 90,550 2022 67,707 6,573 862 75,142 2023 72,491 1,896 360 74,747 Thereafter 578,874 2,631 — 581,505 Total $ 898,851 $ 140,377 $ 3,743 $ 1,042,971 (1) Consists of future minimum payments under non-cancelable purchase commitments related to our daily business operations. Not included in the table above are certain purchase commitments related to our future annual Knowledge user conferences and other customer or sales conferences to be held in 2020 and future years. If we had canceled these contractual commitments as of December 31, 2018 , we would have been obligated to pay cancellation penalties of approximately $18.5 million |
Information about Geographic _2
Information about Geographic Areas and Products (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segments, Geographical Areas [Abstract] | |
Revenues by Geographic Area, Based on Billing Location of Customer | Revenues by geographic area, based on the location of our users, were as follows for the periods presented (in thousands): Year Ended December 31, 2018 2017 2016 *As Adjusted *As Adjusted Revenues by geography North America (1) $ 1,725,255 $ 1,290,043 $ 948,079 EMEA (2) 654,677 475,411 339,317 Asia Pacific and other 228,884 153,040 103,589 Total revenues $ 2,608,816 $ 1,918,494 $ 1,390,985 *As adjusted to reflect the impact of the full retrospective adoption of Topic 606. See Note 2 for further details. |
Schedule of Long Lived Assets by Geographic Area | Property and equipment, net by geographic area were as follows (in thousands): December 31, 2018 2017 Property and equipment, net: North America (3) $ 227,471 $ 164,040 EMEA (2) 82,526 50,028 Asia Pacific and other 37,219 31,056 Total property and equipment, net $ 347,216 $ 245,124 (1) Revenues attributed to the United States were approximately 94% of North America revenues for each of the years ended December 31, 2018 and 2017 , and 95% for the year ended December 31, 2016 . (2) Europe, the Middle East and Africa (EMEA) (3) Property and equipment, net attributed to the United States were approximately 76% and 89% of property and equipment, net attributable to North America for the years ended December 31, 2018 and 2017 |
Schedule of Subscription Revenue by Products | Subscription revenues consist of the following (in thousands): Year Ended December 31, 2018 2017 2016 *As Adjusted *As Adjusted Service management products $ 2,050,841 $ 1,526,125 $ 1,120,129 ITOM products 370,472 213,375 113,941 Total subscription revenues $ 2,421,313 $ 1,739,500 $ 1,234,070 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Capitalized contract cost, amortization period | 5 years | ||
Impairment loss | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Building | |
Property and Equipment [Line Items] | |
Property and equipment, useful life (in years) | 39 years |
Minimum | Computer equipment and software | |
Property and Equipment [Line Items] | |
Property and equipment, useful life (in years) | 3 years |
Minimum | Furniture and fixtures | |
Property and Equipment [Line Items] | |
Property and equipment, useful life (in years) | 3 years |
Maximum | Computer equipment and software | |
Property and Equipment [Line Items] | |
Property and equipment, useful life (in years) | 5 years |
Maximum | Furniture and fixtures | |
Property and Equipment [Line Items] | |
Property and equipment, useful life (in years) | 7 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Capitalized Software Development Costs (Details) - Computer software, intangible asset | 12 Months Ended |
Dec. 31, 2018 | |
Minimum | |
Property and Equipment [Line Items] | |
Property and equipment, useful life (in years) | 3 years |
Maximum | |
Property and Equipment [Line Items] | |
Property and equipment, useful life (in years) | 5 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Leases (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Deferred rent recognition period (in months) | 12 months |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Goodwill, Intangible Assets and Other Long-Lived Assets (Details) | 12 Months Ended |
Dec. 31, 2018reporting_unit | |
Property and Equipment [Line Items] | |
Number of reporting units | 1 |
Minimum | |
Property and Equipment [Line Items] | |
Useful Life (in years) | 4 years |
Maximum | |
Property and Equipment [Line Items] | |
Useful Life (in years) | 10 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 65.2 | $ 43.3 | $ 32 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Convertible Senior Notes (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Nov. 30, 2013 |
2022 Notes | ||||
Debt Instrument [Line Items] | ||||
Notes, par value | $ 782,500,000 | $ 782,500,000 | $ 782,500,000 | |
Contractual interest rate, notes | 0.00% | |||
2018 Notes | ||||
Debt Instrument [Line Items] | ||||
Notes, par value | $ 0 | $ 574,994,000 | $ 575,000,000 | |
Contractual interest rate, notes | 0.00% |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Stock-based Compensation (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options vesting period (in years) | 4 years |
Performance shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation expense recognized, vesting term (in years) | 3 years |
2012 Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Offering period | 6 months |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Concentration of Credit Risk and Significant Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in the allowance for doubtful accounts | |||
Balance at Beginning of Year | $ 3,115 | $ 2,323 | $ 1,179 |
Additions (Deductions): Charged to Operations | 1,255 | 1,688 | 2,219 |
Additions (Deductions): Charged to Deferred Revenue | 1,177 | 194 | (391) |
Less: Write-offs | 898 | 1,090 | 684 |
Balance at End of Year | $ 4,649 | $ 3,115 | $ 2,323 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - New Accounting Pronouncements Adopted in 2018 (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [2] | Jan. 01, 2018 | Dec. 31, 2015 | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||
Capitalized contract cost, amortization period | 5 years | |||||||||
Correction of previously undercapitalized incremental fringe benefit costs associated with sales commissions paid since 2012 | [1] | $ (1,203,056) | $ (894,977) | [2] | $ (659,983) | |||||
Provision for (benefit from) income taxes | $ (12,320) | $ 3,440 | [2] | $ 3,830 | ||||||
Net loss per share - basic and diluted (in USD per share) | $ (0.15) | $ (0.68) | [2] | $ (2.52) | ||||||
Accounting Standards Update 2016-01 | ||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||
Cumulative effect adjustment for ASU adoption | $ 0 | $ 0 | ||||||||
Accounting Standards Update 2016-01 | Accumulated Deficit | ||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||
Cumulative effect adjustment for ASU adoption | 7,234 | $ 7,200 | $ 7,234 | $ 7,200 | ||||||
Accounting Standards Update 2014-09 | ||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||
Cumulative effect adjustment for ASU adoption | $ 118,225 | |||||||||
Provision for (benefit from) income taxes | $ 23,100 | |||||||||
Net loss per share - basic and diluted (in USD per share) | $ 0.13 | |||||||||
Accounting Standards Update 2014-09 | Accumulated Deficit | ||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||
Cumulative effect adjustment for ASU adoption | $ 118,117 | |||||||||
Restatement Adjustment | Accounting Standards Update 2014-09 | ||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||
Correction of previously undercapitalized incremental fringe benefit costs associated with sales commissions paid since 2012 | $ 5,400 | |||||||||
Provision for (benefit from) income taxes | $ 23,300 | |||||||||
Minimum | ||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||
Contract term | 12 months | |||||||||
Maximum | ||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||||||
Contract term | 36 months | |||||||||
[1] | Includes stock-based compensation as follows: Year Ended December 31, 2018 2017 2016 *As Adjusted *As Adjusted Cost of revenues: Subscription $ 48,738 $ 35,334 $ 28,420 Professional services and other 32,816 27,401 26,516 Sales and marketing 228,045 170,527 131,571 Research and development 135,203 92,025 81,731 General and administrative 99,151 68,717 49,416 | |||||||||
[2] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Impact on Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets | |||
Accounts receivable, net | $ 574,810 | $ 437,051 | [1] |
Current portion of deferred commissions | 139,890 | 109,643 | [1] |
Prepaid expenses and other current assets | 132,071 | 95,959 | [1] |
Deferred commissions, less current portion | 282,490 | 224,252 | [1] |
Other assets | 73,458 | 51,832 | [1] |
Liabilities | |||
Accrued expenses and other current liabilities | 330,246 | 253,257 | [1] |
Current portion of deferred revenue | 1,651,594 | 1,210,695 | [1] |
Deferred revenue, less current portion | 38,597 | 36,120 | [1] |
Other long-term liabilities | 55,064 | 65,884 | [1] |
Stockholder’s equity | |||
Accumulated other comprehensive (loss) income | (4,035) | 5,767 | [1] |
Accumulated deficit | $ (978,780) | (958,564) | [1] |
Previously Reported | |||
Assets | |||
Accounts receivable, net | 434,895 | ||
Current portion of deferred commissions | 118,690 | ||
Prepaid expenses and other current assets | 77,681 | ||
Deferred commissions, less current portion | 85,530 | ||
Other assets | 49,600 | ||
Liabilities | |||
Accrued expenses and other current liabilities | 244,605 | ||
Current portion of deferred revenue | 1,280,499 | ||
Deferred revenue, less current portion | 39,884 | ||
Other long-term liabilities | 43,239 | ||
Stockholder’s equity | |||
Accumulated other comprehensive (loss) income | (889) | ||
Accumulated deficit | $ (1,146,520) | ||
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Impact on Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Revenues: | ||||||
Total revenues | $ 2,608,816 | $ 1,918,494 | [1] | $ 1,390,985 | [1] | |
Cost of revenues: | ||||||
Total cost of revenues | [2] | 622,658 | 499,862 | [1] | 398,995 | [1] |
Gross profit | 1,986,158 | 1,418,632 | [1] | 991,990 | [1] | |
Operating expenses: | ||||||
Sales and marketing | [2] | 1,203,056 | 894,977 | [1] | 659,983 | [1] |
Total operating expenses | [2] | 2,028,584 | 1,483,028 | [1] | 1,374,158 | [1] |
Loss from operations | (42,426) | (64,396) | [1] | (382,168) | [1] | |
Interest income and other income (expense), net | 56,135 | 4,384 | [1] | 5,027 | [1] | |
Loss before income taxes | (39,024) | (113,406) | [1] | (410,419) | [1] | |
Provision for (benefit from) income taxes | (12,320) | 3,440 | [1] | 3,830 | [1] | |
Net loss | $ (26,704) | $ (116,846) | [1],[3] | $ (414,249) | [1],[3] | |
Net loss per share - basic and diluted (in USD per share) | $ (0.15) | $ (0.68) | [1] | $ (2.52) | [1] | |
Weighted-average shares used to compute net loss per share - basic and diluted (in shares) | 177,846,023 | 171,175,577 | [1] | 164,533,823 | [1] | |
Total subscription revenues | ||||||
Revenues: | ||||||
Total revenues | $ 2,421,313 | $ 1,739,500 | [1] | $ 1,234,070 | [1] | |
Cost of revenues: | ||||||
Total cost of revenues | [2] | 417,421 | 315,570 | [1] | 235,414 | [1] |
Professional services and other | ||||||
Revenues: | ||||||
Total revenues | 187,503 | 178,994 | [1] | 156,915 | [1] | |
Cost of revenues: | ||||||
Total cost of revenues | [2] | $ 205,237 | 184,292 | [1] | 163,581 | [1] |
Previously Reported | ||||||
Revenues: | ||||||
Total revenues | 1,933,026 | 1,390,513 | ||||
Cost of revenues: | ||||||
Total cost of revenues | 499,772 | 398,682 | ||||
Gross profit | 1,433,254 | 991,831 | ||||
Operating expenses: | ||||||
Sales and marketing | 946,617 | 700,464 | ||||
Total operating expenses | 1,534,668 | 1,414,639 | ||||
Loss from operations | (101,414) | (422,808) | ||||
Interest income and other income (expense), net | 5,804 | 6,035 | ||||
Loss before income taxes | (149,004) | (450,051) | ||||
Provision for (benefit from) income taxes | 126 | 1,753 | ||||
Net loss | $ (149,130) | $ (451,804) | ||||
Net loss per share - basic and diluted (in USD per share) | $ (0.87) | $ (2.75) | ||||
Weighted-average shares used to compute net loss per share - basic and diluted (in shares) | 171,175,577 | 164,533,823 | ||||
Previously Reported | Total subscription revenues | ||||||
Revenues: | ||||||
Total revenues | $ 1,739,795 | $ 1,221,639 | ||||
Previously Reported | Professional services and other | ||||||
Revenues: | ||||||
Total revenues | 193,231 | 168,874 | ||||
Cost of revenues: | ||||||
Total cost of revenues | $ 184,202 | $ 163,268 | ||||
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. | |||||
[2] | Includes stock-based compensation as follows: Year Ended December 31, 2018 2017 2016 *As Adjusted *As Adjusted Cost of revenues: Subscription $ 48,738 $ 35,334 $ 28,420 Professional services and other 32,816 27,401 26,516 Sales and marketing 228,045 170,527 131,571 Research and development 135,203 92,025 81,731 General and administrative 99,151 68,717 49,416 | |||||
[3] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Impact on Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Cash flows from operating activities: | |||||
Net loss | $ (26,704) | $ (116,846) | [1],[2] | $ (414,249) | [1],[2] |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||
Amortization of deferred commissions | 143,358 | 99,105 | [2] | 69,565 | [2] |
Deferred income tax | (34,180) | (5,724) | [2] | (658) | [2] |
Changes in operating assets and liabilities, net of effect of business combinations: | |||||
Accounts receivable | (146,148) | (99,693) | [2] | (126,415) | [2] |
Deferred commissions | (239,382) | (190,246) | [2] | (151,921) | [2] |
Prepaid expenses and other assets | (19,886) | (34,288) | [2] | (24,164) | [2] |
Deferred revenue | 468,856 | 369,242 | [2] | 285,139 | [2] |
Accrued expenses and other liabilities | 82,071 | 66,526 | [2] | 87,560 | [2] |
Net cash provided by operating activities | 811,089 | 642,940 | [2] | 159,081 | [2] |
Foreign currency effect on cash, cash equivalents and restricted cash | $ (15,530) | 28,013 | [2] | (5,945) | [2] |
Previously Reported | |||||
Cash flows from operating activities: | |||||
Net loss | (149,130) | (451,804) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||
Amortization of deferred commissions | 115,262 | 81,217 | |||
Deferred income tax | (9,078) | (3,424) | |||
Changes in operating assets and liabilities, net of effect of business combinations: | |||||
Accounts receivable | (98,432) | (125,106) | |||
Deferred commissions | (174,503) | (136,459) | |||
Prepaid expenses and other assets | (46,138) | (21,500) | |||
Deferred revenue | 381,562 | 300,167 | |||
Accrued expenses and other liabilities | 68,344 | 82,681 | |||
Net cash provided by operating activities | 642,825 | 159,921 | |||
Foreign currency effect on cash, cash equivalents and restricted cash | $ 28,128 | $ (6,785) | |||
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. | ||||
[2] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - New Accounting Pronouncements Pending Adoption (Details) - Accounting Standards Update 2016-02 - Scenario, Forecast $ in Millions | Jan. 01, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease, right-of-use asset | $ 330 |
Operating lease, liability | $ 360 |
Investments - Summary of Invest
Investments - Summary of Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,517,783 | $ 1,427,228 |
Gross Unrealized Gains | 367 | 27 |
Gross Unrealized Losses | (4,576) | (3,727) |
Estimated Fair Value | 1,513,574 | 1,423,528 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 108,061 | 258,348 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | 0 | (5) |
Estimated Fair Value | 108,061 | 258,344 |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,233,589 | 1,006,302 |
Gross Unrealized Gains | 343 | 26 |
Gross Unrealized Losses | (4,218) | (3,084) |
Estimated Fair Value | 1,229,714 | 1,003,244 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 73,584 | 33,084 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 73,585 | 33,084 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 102,549 | 129,494 |
Gross Unrealized Gains | 23 | 0 |
Gross Unrealized Losses | (358) | (638) |
Estimated Fair Value | $ 102,214 | $ 128,856 |
Investments - Narrative (Detail
Investments - Narrative (Detail) | 1 Months Ended | 12 Months Ended | |
May 31, 2018USD ($) | Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contractual maturities term (maximum) | 36 months | ||
Number of available-for-sale securities in unrealized loss position | security | 522 | ||
Other-than-temporary impairments considered | $ 0 | ||
Unrealized gain recognized on sale of marketable equity securities | $ 10,700,000 | ||
Tax effect recognized on sale of marketable equity securities | 3,500,000 | ||
Debt and equity investments in privately-held companies included in other assets | 14,600,000 | 4,800,000 | |
Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Strategic investments, fair value | 1,000,000 | 1,000,000 | |
Marketable equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable securities | 0 | $ 20,700,000 | |
Proceeds from sale of marketable equity securities | $ 40,000,000 | ||
Realized gain recognized on sale of marketable equity securities | $ 19,300,000 |
Investments - Maturities of Ava
Investments - Maturities of Available-for-Sale Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Abstract] | ||
Due within 1 year | $ 931,718 | |
Due in 1 year through 5 years | 581,856 | |
Total | $ 1,513,574 | $ 1,423,528 |
Investments - Fair Values and G
Investments - Fair Values and Gross Unrealized Losses of Available-for-Sale Securities Aggregated by Investment Category (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Continuous loss position, less than 12 months, fair value | $ 727,361 | $ 940,223 |
Continuous loss position, less than 12 months, gross unrealized losses | (2,608) | (3,301) |
Continuous loss position, 12 months or greater, fair value | 356,413 | 164,429 |
Continuous loss position, 12 months or greater, gross unrealized losses | (1,968) | (426) |
Continuous loss position, total, fair value | 1,083,774 | 1,104,652 |
Continuous loss position, total, gross unrealized losses | (4,576) | (3,727) |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous loss position, less than 12 months, fair value | 14,809 | |
Continuous loss position, less than 12 months, gross unrealized losses | (5) | |
Continuous loss position, 12 months or greater, fair value | 0 | |
Continuous loss position, 12 months or greater, gross unrealized losses | 0 | |
Continuous loss position, total, fair value | 14,809 | |
Continuous loss position, total, gross unrealized losses | (5) | |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous loss position, less than 12 months, fair value | 714,605 | 819,113 |
Continuous loss position, less than 12 months, gross unrealized losses | (2,603) | (2,703) |
Continuous loss position, 12 months or greater, fair value | 294,956 | 141,874 |
Continuous loss position, 12 months or greater, gross unrealized losses | (1,615) | (381) |
Continuous loss position, total, fair value | 1,009,561 | 960,987 |
Continuous loss position, total, gross unrealized losses | (4,218) | (3,084) |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous loss position, less than 12 months, fair value | 1,000 | |
Continuous loss position, less than 12 months, gross unrealized losses | 0 | |
Continuous loss position, 12 months or greater, fair value | 0 | |
Continuous loss position, 12 months or greater, gross unrealized losses | 0 | |
Continuous loss position, total, fair value | 1,000 | |
Continuous loss position, total, gross unrealized losses | 0 | |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous loss position, less than 12 months, fair value | 11,756 | 106,301 |
Continuous loss position, less than 12 months, gross unrealized losses | (5) | (593) |
Continuous loss position, 12 months or greater, fair value | 61,457 | 22,555 |
Continuous loss position, 12 months or greater, gross unrealized losses | (353) | (45) |
Continuous loss position, total, fair value | 73,213 | 128,856 |
Continuous loss position, total, gross unrealized losses | $ (358) | $ (638) |
Fair Value Measurements (Detail
Fair Value Measurements (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 1,762,047 | $ 1,877,645 |
Cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 229,047 | 282,507 |
Cash equivalents | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 16,961 | 100,456 |
Cash equivalents | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 50,437 | |
Cash equivalents | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,465 | |
Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 108,061 | 258,344 |
Short-term investments | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 679,542 | 688,316 |
Short-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 56,596 | 17,950 |
Short-term investments | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 87,519 | 67,476 |
Short-term investments | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 20,717 | |
Long-term investments | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 550,172 | 314,928 |
Long-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 16,989 | 15,134 |
Long-term investments | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 14,695 | 61,380 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 229,047 | 303,224 |
Level 1 | Cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 229,047 | 282,507 |
Level 1 | Cash equivalents | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 1 | Cash equivalents | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Level 1 | Cash equivalents | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Level 1 | Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 | Short-term investments | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 | Short-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 | Short-term investments | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 | Short-term investments | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 20,717 | |
Level 1 | Long-term investments | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 | Long-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 | Long-term investments | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,533,000 | 1,574,421 |
Level 2 | Cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 2 | Cash equivalents | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 16,961 | 100,456 |
Level 2 | Cash equivalents | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 50,437 | |
Level 2 | Cash equivalents | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,465 | |
Level 2 | Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 108,061 | 258,344 |
Level 2 | Short-term investments | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 679,542 | 688,316 |
Level 2 | Short-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 56,596 | 17,950 |
Level 2 | Short-term investments | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 87,519 | 67,476 |
Level 2 | Short-term investments | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | |
Level 2 | Long-term investments | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 550,172 | 314,928 |
Level 2 | Long-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 16,989 | 15,134 |
Level 2 | Long-term investments | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 14,695 | $ 61,380 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) | Oct. 31, 2017USD ($) | Dec. 31, 2018USD ($)company | Dec. 31, 2017USD ($)company | Dec. 31, 2016USD ($)company | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 148,845,000 | $ 128,728,000 | [1] | $ 82,534,000 | |
General and administrative | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, transaction costs | $ 1,000,000 | $ 2,400,000 | $ 1,000,000 | ||
2018 Business Combinations | |||||
Business Acquisition [Line Items] | |||||
Number of business combinations | company | 4 | ||||
Payments to acquire businesses | $ 37,600,000 | ||||
Net deferred tax liabilities | 2,200,000 | ||||
Goodwill | 26,100,000 | ||||
Goodwill, tax deductible amount | 8,000,000 | ||||
2018 Business Combinations | Developed technology | |||||
Business Acquisition [Line Items] | |||||
Developed technology | $ 13,500,000 | ||||
Weighted average useful life (in years) | 5 years | ||||
SkyGiraffe Inc. | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire businesses | $ 32,300,000 | ||||
Net deferred tax liabilities | 3,341,000 | ||||
Goodwill | 19,386,000 | ||||
SkyGiraffe Inc. | Developed technology | |||||
Business Acquisition [Line Items] | |||||
Developed technology | $ 15,600,000 | ||||
Other 2017 Business Combinations | |||||
Business Acquisition [Line Items] | |||||
Number of business combinations | company | 3 | ||||
Payments to acquire businesses | $ 26,600,000 | ||||
Developed technology | 9,900,000 | ||||
Net deferred tax liabilities | 3,600,000 | ||||
Goodwill | 20,300,000 | ||||
Goodwill, tax deductible amount | $ 4,100,000 | ||||
Other 2017 Business Combinations | Developed technology | |||||
Business Acquisition [Line Items] | |||||
Weighted average useful life (in years) | 5 years | ||||
2016 Business Combinations | |||||
Business Acquisition [Line Items] | |||||
Number of business combinations | company | 2 | ||||
Payments to acquire businesses | $ 34,100,000 | ||||
Net deferred tax liabilities | 4,900,000 | ||||
Goodwill | 26,700,000 | ||||
Goodwill, tax deductible amount | 0 | ||||
2016 Business Combinations | Developed technology | |||||
Business Acquisition [Line Items] | |||||
Developed technology | $ 12,800,000 | ||||
Minimum | 2016 Business Combinations | Developed technology | |||||
Business Acquisition [Line Items] | |||||
Weighted average useful life (in years) | 5 years | ||||
Maximum | 2016 Business Combinations | Developed technology | |||||
Business Acquisition [Line Items] | |||||
Weighted average useful life (in years) | 6 years | ||||
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Business Combinations - Summary
Business Combinations - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 148,845 | $ 128,728 | $ 82,534 | ||
SkyGiraffe Inc. | |||||
Business Acquisition [Line Items] | |||||
Net tangible assets acquired | $ 675 | ||||
Goodwill | 19,386 | ||||
Net deferred tax liabilities | (3,341) | ||||
Total purchase price | 32,320 | ||||
Developed technology | SkyGiraffe Inc. | |||||
Business Acquisition [Line Items] | |||||
Developed technology | $ 15,600 | ||||
Useful Life (in years) | 5 years | ||||
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | $ 128,728 | [1] | $ 82,534 | |
Goodwill acquired | 26,063 | 39,668 | ||
Foreign currency translation adjustments | (5,946) | 6,526 | ||
Goodwill, ending balance | $ 148,845 | $ 128,728 | [1] | |
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 172,225 | $ 134,954 | |
Less: accumulated amortization | (71,643) | (48,038) | |
Net carrying amount | 100,582 | 86,916 | [1] |
Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 114,395 | 102,349 | |
Patents | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 57,180 | 31,030 | |
Other | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 650 | $ 1,575 | |
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 25.2 | $ 19.7 | $ 15.1 |
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, net | $ 26.2 | $ 13.4 | |
Weighted average useful life (in years) | 7 years | 10 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization of Intangible Assets (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 29,037 |
2,020 | 19,447 |
2,021 | 17,521 |
2,022 | 13,608 |
2,023 | 7,739 |
Thereafter | 13,230 |
Total future amortization expense | $ 100,582 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Property and Equipment [Line Items] | |||
Property and equipment, gross | $ 685,829 | $ 480,237 | |
Less: Accumulated depreciation | (338,613) | (235,113) | |
Total property and equipment, net | 347,216 | 245,124 | [1] |
Computer equipment | |||
Property and Equipment [Line Items] | |||
Property and equipment, gross | 493,536 | 326,378 | |
Computer software | |||
Property and Equipment [Line Items] | |||
Property and equipment, gross | 58,303 | 46,413 | |
Leasehold and other improvements | |||
Property and Equipment [Line Items] | |||
Property and equipment, gross | 74,721 | 56,232 | |
Furniture and fixtures | |||
Property and Equipment [Line Items] | |||
Property and equipment, gross | 42,551 | 38,789 | |
Building | |||
Property and Equipment [Line Items] | |||
Property and equipment, gross | 6,551 | 7,084 | |
Construction in progress | |||
Property and Equipment [Line Items] | |||
Property and equipment, gross | $ 10,167 | $ 5,341 | |
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Property and Equipment - Narrat
Property and Equipment - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 123 | $ 93.2 | $ 67.8 |
Derivative Contracts (Details)
Derivative Contracts (Details) - Not Designated as Hedging Instrument - Foreign currency derivative contracts $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Derivative [Line Items] | |
Derivative, term of contract | 12 months |
Derivative, notional amount | $ 883,900 |
Level 2 | Prepaid expenses and other current assets | |
Derivative [Line Items] | |
Derivative Assets | 22,831 |
Level 2 | Accrued expenses and other current liabilities | |
Derivative [Line Items] | |
Derivative Liabilities | $ 2,441 |
Deferred Revenue and Performa_2
Deferred Revenue and Performance Obligations (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue recognized | $ 1.1 |
Remaining non-cancelable performance obligations | $ 4.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied (percent) | 50.00% |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Accrued Liabilities, Current [Abstract] | |||
Accrued payroll | $ 158,006 | $ 130,400 | |
Taxes payable | 35,122 | 25,617 | |
Other employee related liabilities | 60,889 | 44,284 | |
Other | 76,229 | 52,956 | |
Total accrued expenses and other current liabilities | $ 330,246 | $ 253,257 | [1] |
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Convertible Senior Notes - Sche
Convertible Senior Notes - Schedule of Conversion (Details) | 1 Months Ended | 2 Months Ended |
Nov. 30, 2013shares$ / shares | Jun. 30, 2017shares$ / shares | |
2022 Notes | ||
Debt Instrument [Line Items] | ||
Initial conversion price (in USD per share) | $ / shares | $ 134.75 | |
Conversion rate (in USD per share) | 0.00742 | |
Converted number of shares (in shares) | shares | 5,806,936 | |
2018 Notes | ||
Debt Instrument [Line Items] | ||
Initial conversion price (in USD per share) | $ / shares | $ 73.88 | |
Conversion rate (in USD per share) | 0.01354 | |
Converted number of shares (in shares) | shares | 7,783,023 |
Convertible Senior Notes - Narr
Convertible Senior Notes - Narrative (Details) | Nov. 01, 2018USD ($)shares | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)daytrading_dayshares | Feb. 01, 2019shares | Dec. 31, 2017USD ($) |
Debt Conversion [Line Items] | |||||
Percentage of purchase price of notes which should be paid upon fundamental change (percent) | 100.00% | ||||
Benefit from exercise of 2018 Note Hedges | $ (766,857,000) | ||||
Fair Value Measurement Debt Basis Amount | $ 100 | $ 100 | |||
Warrant exercise period | trading_day | 60 | ||||
Stock Price Trigger Measurement | |||||
Debt Conversion [Line Items] | |||||
Number of days out of 30 that common stock price exceeded conversion price, days | day | 20 | ||||
Number of consecutive trading days in a period | day | 30 | ||||
Threshold percentage of stock price trigger | 130.00% | ||||
Notes Price Trigger Measurement | |||||
Debt Conversion [Line Items] | |||||
Number of days out of 30 that common stock price exceeded conversion price, days | day | 5 | ||||
Number of consecutive trading days in a period | day | 5 | ||||
Threshold percentage of stock price trigger | 98.00% | ||||
Conversion of notes base conversion price | $ 1,000 | ||||
2022 Notes | |||||
Debt Conversion [Line Items] | |||||
Remaining life of the notes | 41 months | ||||
2018 Notes | |||||
Debt Conversion [Line Items] | |||||
Settlement of principal | $ 161,800,000 | $ 413,200,000 | |||
Settlement of 2018 Notes conversion feature (in shares) | shares | 1,300,000 | ||||
Loss on extinguishment of debt | $ (4,100,000) | ||||
Conversion option settlement, reduction to additional paid-in capital | 6,400,000 | ||||
Conversion option settlement, fair value adjustments | 773,300,000 | ||||
2018 Note Hedge | |||||
Debt Conversion [Line Items] | |||||
Benefit from exercise of 2018 Note Hedges | $ 766,900,000 | ||||
Note Hedged Shares Of Common Stock Remaining | shares | 0 | ||||
2022 Note Hedge | |||||
Debt Conversion [Line Items] | |||||
Note Hedged Shares Of Common Stock Remaining | shares | 5,806,936 | ||||
2018 Warrants | |||||
Debt Conversion [Line Items] | |||||
Number of shares to be issued upon exercise of the 2018 Warrants | shares | 7,783,023 | ||||
2018 Warrants | Scenario, Forecast | |||||
Debt Conversion [Line Items] | |||||
Number of shares to be issued upon exercise of the 2018 Warrants | shares | 4,000,000 |
Convertible Senior Notes - Sc_2
Convertible Senior Notes - Schedule of Notes Payable (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Nov. 30, 2013 |
Debt Instrument [Line Items] | ||||
Net carrying amount | $ 661,707,000 | $ 1,173,436,000 | ||
2022 Notes | ||||
Debt Instrument [Line Items] | ||||
Notes, par value | 782,500,000 | 782,500,000 | $ 782,500,000 | |
Less: debt issuance cost and debt discount, net of amortization | (120,793,000) | (152,482,000) | ||
2018 Notes | ||||
Debt Instrument [Line Items] | ||||
Notes, par value | 0 | 574,994,000 | $ 575,000,000 | |
Less: debt issuance cost and debt discount, net of amortization | $ 0 | $ (31,576,000) |
Convertible Senior Notes - Equi
Convertible Senior Notes - Equity Components (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Nov. 30, 2013 |
2022 Notes | ||
Debt Instrument [Line Items] | ||
Note | $ 162,039 | |
Issuance cost | (2,148) | |
Net amount recorded in equity | $ 159,891 | |
2018 Notes | ||
Debt Instrument [Line Items] | ||
Note | $ 155,319 | |
Issuance cost | (3,257) | |
Net amount recorded in equity | $ 152,062 |
Convertible Senior Notes - Sc_3
Convertible Senior Notes - Schedule of Fair Value (Details) - Level 2 - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
2022 Notes | ||
Debt Instrument [Line Items] | ||
Fair value | $ 1,105,281 | $ 897,778 |
2018 Notes | ||
Debt Instrument [Line Items] | ||
Fair value | $ 0 | $ 1,015,554 |
Convertible Senior Notes - Sc_4
Convertible Senior Notes - Schedule of Interest Expense Recognized (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Debt Instrument [Line Items] | |||||
Amortization of debt discount and issuance costs | $ 52,733,000 | $ 53,394,000 | [1] | $ 33,278,000 | [1] |
Fair Value Measurement Debt Basis Amount | 100 | 100 | |||
2022 Notes | |||||
Debt Instrument [Line Items] | |||||
Amortization of debt issuance cost | 1,531,000 | 860,000 | 0 | ||
Amortization of debt discount | $ 30,159,000 | $ 16,921,000 | $ 0 | ||
Effective interest rate of the liability component (in percent) | 4.75% | 4.75% | 4.75% | ||
2018 Notes | |||||
Debt Instrument [Line Items] | |||||
Amortization of debt issuance cost | $ 1,131,000 | $ 1,911,000 | $ 1,785,000 | ||
Amortization of debt discount | $ 19,912,000 | $ 33,702,000 | $ 31,493,000 | ||
Effective interest rate of the liability component (in percent) | 6.50% | 6.50% | 6.50% | ||
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Convertible Senior Notes - Sc_5
Convertible Senior Notes - Schedule of Note Hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | |
Debt Instrument [Line Items] | |||||
Purchase | $ 0 | $ 128,017 | $ 0 | ||
2022 Note Hedge | |||||
Debt Instrument [Line Items] | |||||
Note Hedged Shares Of Common Stock Remaining | 5,806,936 | ||||
Purchase | $ 128,017 | ||||
Shares (in shares) | 5,806,936 | ||||
2018 Note Hedge | |||||
Debt Instrument [Line Items] | |||||
Note Hedged Shares Of Common Stock Remaining | 0 | ||||
Purchase | $ 135,815 | ||||
Shares (in shares) | 7,783,023 | ||||
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Convertible Senior Notes - Sc_6
Convertible Senior Notes - Schedule of Warrants (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018USD ($)trading_day$ / sharesshares | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016USD ($) | [1] | Feb. 01, 2019shares | |
Debt Instrument [Line Items] | ||||||
Proceeds | $ | $ 0 | $ 54,071 | $ 0 | |||
Warrant exercise period | trading_day | 60 | |||||
2022 Warrants | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds | $ | $ 54,071 | |||||
Shares (in shares) | 5,806,936 | |||||
Strike Price (in USD per share) | $ / shares | $ 203.40 | |||||
2018 Warrants | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds | $ | $ 84,525 | |||||
Shares (in shares) | 7,783,023 | |||||
Strike Price (in USD per share) | $ / shares | $ 107.46 | |||||
Scenario, Forecast | 2022 Warrants | ||||||
Debt Instrument [Line Items] | ||||||
Shares (in shares) | 400,000 | |||||
Scenario, Forecast | 2018 Warrants | ||||||
Debt Instrument [Line Items] | ||||||
Shares (in shares) | 4,000,000 | |||||
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment | $ 344 | $ 2,246 | ||
Net unrealized gain (loss) on investments, net of tax | (4,379) | 3,521 | ||
Accumulated other comprehensive income (loss) | (4,035) | 5,767 | [1] | |
Accounting Standards Update 2016-01 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect adjustment for ASU adoption | 0 | |||
Accumulated Deficit | Accounting Standards Update 2016-01 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect adjustment for ASU adoption | $ 7,200 | $ 7,200 | $ 7,234 | |
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Detail) - USD ($) $ / shares in Units, $ in Thousands | Nov. 01, 2018 | May 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Stockholders' Equity | |||||
Shares of common stock, authorized (in shares) | 600,000,000 | 600,000,000 | |||
Shares of common stock, issued and sold (in shares) | 180,175,355 | 174,275,864 | |||
Repurchases and retirement of common stock (in shares) | 540,806 | ||||
Repurchases and retirement of common stock | $ 55,000 | $ 55,000 | |||
Repurchases and retirement of common stock (in USD per share) | $ 101.70 | ||||
Settlement of 2018 Notes conversion feature (in shares) | 1,300,000 | ||||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | |||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||
Common Stock | |||||
Stockholders' Equity | |||||
Common stock issued under employee stock plans (in shares) | 5,899,519 | 7,385,897 | 6,645,009 | ||
Repurchases and retirement of common stock (in shares) | 540,806 | ||||
Settlement of 2018 Notes conversion feature (in shares) | 1,313,617 |
Stockholders' Equity - Outstand
Stockholders' Equity - Outstanding and Reserved Shares of Common Stock for Future Issuance (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||
Options outstanding (in shares) | 1,810,580 | 3,369,732 | 5,818,435 |
Total reserved shares of common stock for future issuance (in shares) | 54,725,897 | ||
2012 Equity Incentive Plan | |||
Class of Stock [Line Items] | |||
Total reserved shares of common stock for future issuance (in shares) | 31,999,234 | ||
2012 Employee Stock Purchase Plan | |||
Class of Stock [Line Items] | |||
Total reserved shares of common stock for future issuance (in shares) | 10,714,423 | ||
Stock options | |||
Class of Stock [Line Items] | |||
Options outstanding (in shares) | 1,810,580 | ||
Restricted stock units | |||
Class of Stock [Line Items] | |||
RSUs (in shares) | 10,201,660 | 11,403,341 | 12,222,282 |
Performance target (in percent) | 100.00% |
Equity Awards - Narrative (Deta
Equity Awards - Narrative (Detail) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2018USD ($)incentive_planshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equity incentive plans | incentive_plan | 2 | |||
Total intrinsic value of options exercised | $ 204,337 | $ 277,670 | $ 157,800 | |
Weighted-average grant date fair value of options granted (in USD per share) | $ / shares | $ 37.57 | $ 28.01 | ||
Number of shares, granted (in shares) | shares | 0 | 616,720 | ||
Fair value of stock options vested | $ 12,300 | $ 11,800 | $ 17,000 | |
Total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options | $ 11,700 | |||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average remaining vesting period | 2 years 3 months 25 days | |||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average remaining vesting period | 2 years 9 months 29 days | |||
Number of shares outstanding | shares | 10,201,660 | 11,403,341 | 12,222,282 | |
Aggregate intrinsic value, vested | $ 931,848 | $ 573,861 | ||
Performance target (in percent) | 100.00% | |||
Unrecognized compensation expense expected to be recognized | $ 871,400 | |||
Restricted stock units with service condition only | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares outstanding | shares | 9,443,982 | |||
Aggregate intrinsic value, vested | $ 354,300 | |||
Vesting term (in years) | 4 years | |||
Restricted Stock Units With Service And Performance Conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares outstanding | shares | 757,678 | |||
Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting term (in years) | 3 years | |||
Performance target (in percent) | 100.00% | |||
Allocated share-based compensation expense | $ 91,800 | $ 40,500 | $ 36,100 | |
Tranche one | Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting term (in years) | 3 months | |||
Award vesting percentage | 33.00% | |||
Tranche two | Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting term (in years) | 2 years | 3 months | ||
Tranche three | Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting term (in years) | 3 months | |||
Tranche four | Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting term (in years) | 3 months | |||
Minimum | Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance target (in percent) | 0.00% | |||
Maximum | Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance target (in percent) | 180.00% | |||
President And Chief Executive Officer | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, granted (in shares) | shares | 396,720 | |||
2012 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares of common stock outstanding, increase, percentage | 5.00% | |||
2012 Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares of common stock outstanding, increase, percentage | 1.00% | |||
Common stock purchase price, percentage | 85.00% | |||
Offering period | 6 months | |||
2005 Stock Plan and 2012 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted to new employees vest, percentage per annum | 25.00% | |||
Requisite service period to vest employment continuation period | 3 years | |||
Options granted, exercisable period | 10 years |
Equity Awards - Summary of Stoc
Equity Awards - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares | |||
Number of shares, outstanding, beginning balance (in shares) | 3,369,732 | 5,818,435 | |
Number of shares, granted (in shares) | 0 | 616,720 | |
Number of shares, exercised (in shares) | (1,461,712) | (2,970,914) | |
Number of shares, canceled (in shares) | (97,440) | (94,509) | |
Number of shares, outstanding, ending balance (in shares) | 1,810,580 | 3,369,732 | 5,818,435 |
Number of shares, vested and expected to vest (in shares) | 1,804,158 | ||
Number of shares, vested and exercisable (in shares) | 1,319,851 | ||
Weighted- Average Exercise Price | |||
Weighted-average exercise price, outstanding, beginning balance (in USD per share) | $ 38.43 | $ 20.57 | |
Weighted-average exercise price, granted (in USD per share) | 86.33 | ||
Weighted-average exercise price, exercised (in USD per share) | 26.23 | 12.44 | |
Weighted-average exercise price, canceled (in USD per share) | 70.52 | 68.88 | |
Weighted-average exercise price, outstanding, ending balance (in USD per share) | 46.55 | $ 38.43 | $ 20.57 |
Weighted-average exercise price, vested and expected to vest (in USD per share) | 46.45 | ||
Weighted-average exercise price, vested and exercisable (in USD per share) | $ 32.90 | ||
Weighted-average remaining contractual life (in years) | 5 years 3 months 18 days | ||
Weighted-average remaining contractual term, vested and expected to vest (in years) | 5 years 3 months 14 days | ||
Weighted-average remaining contractual term, vested and exercisable (in years) | 4 years 3 months 18 days | ||
Total intrinsic value of options exercised | $ 204,337 | $ 277,670 | $ 157,800 |
Aggregate intrinsic value, outstanding | 238,092 | ||
Aggregate intrinsic value, vested and expected to vest | 237,425 | ||
Aggregate intrinsic value, vested and exercisable | $ 191,580 |
Equity Awards - Restricted Stoc
Equity Awards - Restricted Stock Unit Table (Details) - Restricted stock units - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Shares Outstanding | ||
Number of shares outstanding, beginning balance (in shares) | 11,403,341 | 12,222,282 |
Number of shares, granted (in shares) | 5,302,586 | 6,320,457 |
Number of shares, vested (in shares) | (5,485,868) | (5,502,004) |
Number of shares, forfeited (in shares) | (1,018,399) | (1,637,394) |
Number of shares outstanding, ending balance (in shares) | 10,201,660 | 11,403,341 |
Expected to vest (in shares) | 9,236,535 | |
Weighted-Average Grant Date Fair Value | ||
Weighted-average grant date fair value, outstanding, beginning balance (in USD per share) | $ 81.50 | $ 63.66 |
Weighted-average grant date fair value, granted (in USD per share) | 160.08 | 95.70 |
Weighted-average grant date fair value, vested (in USD per share) | 77.38 | 60.79 |
Weighted-average grant date fair value, repurchased (in USD per share) | 100.55 | 72.69 |
Weighted-average grant date fair value, outstanding, ending balance (in USD per share) | $ 121.84 | $ 81.50 |
Aggregate intrinsic value, vested | $ 931,848 | $ 573,861 |
Aggregate intrinsic value, outstanding | 1,816,406 | |
Aggregated intrinsic value, expected to vest | $ 1,644,565 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, granted (in shares) | 0 | 616,720 | |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 26.00% | 28.00% | 31.00% |
Expected volatility, maximum | 31.00% | 49.00% | 49.00% |
Expected term (in years) | 15 days | 15 days | 15 days |
Risk-free interest rate. minimum | 1.15% | 0.40% | 0.17% |
Risk-free interest rate, maximum | 2.22% | 1.15% | 0.47% |
Dividend yield (in percent) | 0.00% | 0.00% | 0.00% |
Common stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 39.00% | 41.00% | |
Expected volatility, maximum | 42.00% | 42.00% | |
Expected term (in years) | 4 years 10 months 20 days | ||
Risk-free interest rate. minimum | 1.78% | 1.18% | |
Risk-free interest rate, maximum | 2.47% | 1.87% | |
Dividend yield (in percent) | 0.00% | 0.00% | |
Common stock options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 4 years 10 months 21 days | ||
Common stock options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 7 months 7 days |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Calculation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | |
Numerator: | |||||
Net loss | $ (26,704) | $ (116,846) | [2] | $ (414,249) | [2] |
Denominator: | |||||
Weighted-average shares outstanding - basic and diluted (in shares) | 177,846,023 | 171,175,577 | 164,533,823 | ||
Net loss per share - basic and diluted (in USD per share) | $ (0.15) | $ (0.68) | $ (2.52) | ||
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. | ||||
[2] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Summary of Potentially Dilutive Securities (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive securities (in shares) | 31,727,069 | 42,314,596 | 33,973,292 |
Common stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive securities (in shares) | 1,810,580 | 3,369,732 | 5,818,435 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive securities (in shares) | 10,201,660 | 11,403,341 | 12,222,282 |
ESPP obligations | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive securities (in shares) | 317,940 | 361,688 | 366,529 |
2018 Notes | Convertible senior notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive securities (in shares) | 0 | 7,782,946 | 7,783,023 |
2022 Notes | Convertible senior notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive securities (in shares) | 5,806,933 | 5,806,933 | 0 |
2018 Warrants | Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive securities (in shares) | 7,783,023 | 7,783,023 | 7,783,023 |
2022 Warrants | Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive securities (in shares) | 5,806,933 | 5,806,933 | 0 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Current provision: | |||||
Federal | $ (336) | $ (445) | $ (55) | ||
State | 163 | 137 | 135 | ||
Foreign | 22,204 | 9,512 | 5,098 | ||
Total current provision | 22,031 | 9,204 | 5,178 | ||
Deferred provision: | |||||
Federal | (2,026) | (5,934) | (4,462) | ||
State | (377) | (886) | (746) | ||
Foreign | (31,948) | 1,056 | 3,860 | ||
Total deferred provision | (34,351) | (5,764) | (1,348) | ||
Provision for (benefit from) income taxes | $ (12,320) | $ 3,440 | [1] | $ 3,830 | [1] |
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Income Taxes - Components of Lo
Income Taxes - Components of Loss From Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Income Tax Disclosure [Abstract] | |||||
United States | $ (153,290) | $ (61,259) | $ (403,161) | ||
Foreign | 114,266 | (52,147) | (7,258) | ||
Loss before income taxes | $ (39,024) | $ (113,406) | [1] | $ (410,419) | [1] |
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Income Tax Disclosure [Abstract] | |||||
Tax computed at U.S. federal statutory rate | $ (8,195) | $ (38,558) | $ (139,542) | ||
State taxes, net of federal benefit | 98 | 64 | 37 | ||
Tax rate differential for international subsidiaries | (41,429) | 23,532 | 8,020 | ||
Stock-based compensation | (93,073) | (116,953) | (27,133) | ||
Tax credits | (44,695) | (21,038) | (16,452) | ||
Foreign restructuring and amortization | (625,292) | 2,794 | 3,169 | ||
Non-deductible expenses | 9,657 | 2,833 | 1,892 | ||
Tax effects associated with Topic 606 | (23,073) | 3,314 | 2,076 | ||
Other | 408 | 607 | 896 | ||
Valuation allowance | 813,274 | 146,845 | 170,867 | ||
Provision for (benefit from) income taxes | $ (12,320) | $ 3,440 | [1] | $ 3,830 | [1] |
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 610,314 | $ 518,620 |
Accrued expenses | 13,482 | 10,613 |
Credit carryforwards | 120,594 | 75,879 |
Stock-based compensation | 44,510 | 35,782 |
Note hedge | 22,742 | 35,181 |
Depreciation and amortization | 593,348 | 0 |
Other | 23,183 | 14,771 |
Total deferred tax assets | 1,428,173 | 690,846 |
Less valuation allowance | (1,337,350) | (583,235) |
Deferred tax assets net | 90,823 | 107,611 |
Deferred tax liabilities: | ||
Depreciation and amortization | (22,183) | (20,708) |
Convertible notes | (24,887) | (43,616) |
Tax effects associated with Topic 606 | (23,531) | (53,601) |
Other | (1,568) | (1,759) |
Net deferred tax assets | $ 18,654 | |
Net deferred tax assets | $ (12,073) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | ||||
Operating loss carryforward | $ 2,400,000 | |||
Tax credit carryforwards | 120,594 | $ 75,879 | ||
Tax credit carryforwards | 1,300,000 | |||
Deferred tax assets, gross | 1,428,173 | 690,846 | ||
Valuation allowance comparison | 754,100 | |||
Total unrecognized tax benefit | 27,591 | 27,648 | $ 18,440 | $ 11,737 |
Unrecognized tax benefits that would impact effective tax rate | 4,700 | |||
Unrecognized tax benefits, income tax interest and penalties accrued | 300 | 500 | ||
Federal | ||||
Income Taxes [Line Items] | ||||
Tax credit carryforwards | 89,700 | |||
State | ||||
Income Taxes [Line Items] | ||||
Tax credit carryforwards | 65,200 | |||
Foreign Tax Authority | ||||
Income Taxes [Line Items] | ||||
Deferred tax assets, gross | 18,700 | |||
Valuation allowance comparison | $ (106,900) | $ 607,000 | ||
Increase in deferred tax assets related to foreign restructuring | $ 590,000 |
Income Taxes - Reconciliation_3
Income Taxes - Reconciliation of Beginning and Ending Balance of Total Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of beginning and ending balance of total unrecognized tax benefits | |||
Balance, beginning period | $ 27,648 | $ 18,440 | $ 11,737 |
Gross increases - tax positions in prior year | 3,721 | 398 | 1,122 |
Gross decreases - tax positions in prior period | (2,896) | 0 | (50) |
Gross increases - tax positions in current period | 5,796 | 8,810 | 5,673 |
Gross decreases - tax positions in current period | 0 | 0 | 0 |
Lapse of statute of limitations | (1,078) | 0 | (42) |
Settlements | (5,600) | 0 | 0 |
Balance, end of period | $ 27,591 | $ 27,648 | $ 18,440 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Detail) $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | May 31, 2018USD ($)ft² | Jun. 30, 2017USD ($) | ||||
Operating Leased Assets [Line Items] | ||||||||
Total minimum lease payments | $ 898,851 | |||||||
Rent expense | 42,800 | $ 39,700 | $ 34,200 | |||||
Letters of credit | 22,600 | |||||||
Legal settlements | [1] | 0 | 0 | [2] | 270,000 | [2] | ||
Cost of revenues | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Service charges and operating lease expense | 25,700 | 22,500 | $ 17,300 | |||||
2022 Notes | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Notes, par value | $ 782,500 | $ 782,500 | $ 782,500 | |||||
Santa Clara Office | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Area of building under lease (in sq. ft) | ft² | 838,523 | |||||||
Lease term | 5 years | |||||||
Total minimum lease payments | $ 566,500 | |||||||
[1] | Includes stock-based compensation as follows: Year Ended December 31, 2018 2017 2016 *As Adjusted *As Adjusted Cost of revenues: Subscription $ 48,738 $ 35,334 $ 28,420 Professional services and other 32,816 27,401 26,516 Sales and marketing 228,045 170,527 131,571 Research and development 135,203 92,025 81,731 General and administrative 99,151 68,717 49,416 | |||||||
[2] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Commitments and Contingencies_2
Commitments and Contingencies - Annual Future Minimum Payments Under Operating Leases / Facility Exit Obligation (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases | |
2,019 | $ 55,435 |
2,020 | 60,996 |
2,021 | 63,348 |
2,022 | 67,707 |
2,023 | 72,491 |
Thereafter | 578,874 |
Operating leases, net of sublease income, total | 898,851 |
Purchase Obligations | |
2,019 | 55,875 |
2,020 | 47,062 |
2,021 | 26,340 |
2,022 | 6,573 |
2,023 | 1,896 |
Thereafter | 2,631 |
Purchase obligation, total | 140,377 |
Other | |
2,019 | 813 |
2,020 | 846 |
2,021 | 862 |
2,022 | 862 |
2,023 | 360 |
Thereafter | 0 |
Other commitment, total | 3,743 |
Total | |
2,019 | 112,123 |
2,020 | 108,904 |
2,021 | 90,550 |
2,022 | 75,142 |
2,023 | 74,747 |
Thereafter | 581,505 |
Total minimum lease payments | 1,042,971 |
Operating leases, cancellation penalty | $ 18,500 |
Information about Geographic _3
Information about Geographic Areas and Products - Revenues by Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 2,608,816 | $ 1,918,494 | [1] | $ 1,390,985 | [1] |
North America | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,725,255 | 1,290,043 | 948,079 | ||
EMEA | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 654,677 | 475,411 | 339,317 | ||
Asia Pacific and other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 228,884 | $ 153,040 | $ 103,589 | ||
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Information about Geographic _4
Information about Geographic Areas and Products - Property and Equipment, Net by Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | ||||
Property and equipment, net | $ 347,216 | $ 245,124 | [1] | |
Percentage of U.S. Revenues in North America | 94.00% | 94.00% | 95.00% | |
Percentage of U.S. net property and equipment in North America | 76.00% | 89.00% | ||
North America | ||||
Segment Reporting Information [Line Items] | ||||
Property and equipment, net | $ 227,471 | $ 164,040 | ||
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Property and equipment, net | 82,526 | 50,028 | ||
Asia Pacific and other | ||||
Segment Reporting Information [Line Items] | ||||
Property and equipment, net | $ 37,219 | $ 31,056 | ||
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Information about Geographic _5
Information about Geographic Areas and Products - Subscription Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 2,608,816 | $ 1,918,494 | [1] | $ 1,390,985 | [1] |
Service management products | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,050,841 | 1,526,125 | 1,120,129 | ||
ITOM products | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 370,472 | 213,375 | 113,941 | ||
Total subscription revenues | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 2,421,313 | $ 1,739,500 | [1] | $ 1,234,070 | [1] |
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |
Uncategorized Items - now-20181
Label | Element | Value | |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | $ 0 | [1] |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | 33,000 | [1] |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | 0 | |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | 2,334,000 | |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | 1,301,000 | [1] |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | $ 694,000 | [1] |
[1] | As adjusted to reflect the impact of the full retrospective adoption of Topic 606. |