Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 15, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ZNGA | |
Entity Registrant Name | ZYNGA INC | |
Entity Central Index Key | 1439404 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 784,963,014 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 114,380,134 | |
Common Class C [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 20,517,472 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $217,455 | $131,303 |
Marketable securities | 732,985 | 785,221 |
Accounts receivable, net of allowance of $0 at March 31, 2015 and December 31, 2014 | 79,521 | 89,611 |
Income tax receivable | 4,502 | 3,304 |
Deferred tax assets | 924 | 2,765 |
Restricted cash | 48,098 | 48,047 |
Other current assets | 28,800 | 22,688 |
Total current assets | 1,112,285 | 1,082,939 |
Long-term marketable securities | 148,411 | 231,385 |
Goodwill | 633,511 | 650,778 |
Other intangible assets, net | 57,678 | 66,861 |
Property and equipment, net | 288,027 | 297,919 |
Other long-term assets | 16,117 | 18,911 |
Total assets | 2,256,029 | 2,348,793 |
Current liabilities: | ||
Accounts payable | 16,028 | 14,965 |
Other current liabilities | 108,576 | 164,150 |
Deferred revenue | 176,479 | 189,923 |
Total current liabilities | 301,083 | 369,038 |
Deferred revenue | 1,443 | 3,882 |
Deferred tax liabilities | 6,406 | 5,323 |
Other non-current liabilities | 73,959 | 74,858 |
Total liabilities | 382,891 | 453,101 |
Stockholders' equity: | ||
Common stock, $0.00000625 par value, and additional paid in capital - authorized shares: 2,020,517 shares outstanding: 913,797 shares (Class A, 778,792, Class B, 114,488, Class C, 20,517) as of March 31, 2015 and 905,860 (Class A, 770,658, Class B, 114,685, Class C, 20,517) as of December 31, 2014 | 3,143,285 | 3,096,982 |
Accumulated other comprehensive income (loss) | -51,350 | -29,175 |
Accumulated deficit | -1,218,797 | -1,172,115 |
Total stockholders' equity | 1,873,138 | 1,895,692 |
Total liabilities and stockholders' equity | $2,256,029 | $2,348,793 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance | $0 | $0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 2,020,517,000 | 2,020,517,000 |
Common stock, shares outstanding | 913,797,000 | 905,860,000 |
Common Class A [Member] | ||
Common stock, shares outstanding | 778,792,000 | 770,658,000 |
Common Class B [Member] | ||
Common stock, shares outstanding | 114,488,000 | 114,685,000 |
Common Class C [Member] | ||
Common stock, shares outstanding | 20,517,000 | 20,517,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue: | ||
Online game | $147,963 | $132,270 |
Advertising and other | 35,330 | 35,750 |
Total revenue | 183,293 | 168,020 |
Costs and expenses: | ||
Cost of revenue | 57,622 | 53,504 |
Research and development | 107,520 | 97,584 |
Sales and marketing | 31,839 | 29,853 |
General and administrative | 40,381 | 57,336 |
Total costs and expenses | 237,362 | 238,277 |
Income (loss) from operations | -54,069 | -70,257 |
Interest income (expense), net | 794 | 870 |
Other income (expense), net | 8,359 | 1,125 |
Income (loss) before income taxes | -44,916 | -68,262 |
Provision for (benefit from) income taxes | 1,580 | -7,079 |
Net income (loss) | ($46,496) | ($61,183) |
Net income (loss) per share: | ||
Basic | ($0.05) | ($0.07) |
Diluted | ($0.05) | ($0.07) |
Weighted average common shares used to compute net income (loss) per share: | ||
Basic | 898,344 | 850,148 |
Diluted | 898,344 | 850,148 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Partners' Capital [Abstract] | ||
Net income (loss) | ($46,496) | ($61,183) |
Other comprehensive income (loss): | ||
Change in foreign currency translation adjustment | -22,613 | 5,253 |
Net change on unrealized gains (losses) on available-for-sale investments, net of tax | 438 | -127 |
Other comprehensive income (loss) | -22,175 | 5,126 |
Comprehensive income (loss) | ($68,671) | ($56,057) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities: | ||
Net income (loss) | ($46,496) | ($61,183) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 17,722 | 25,344 |
Stock-based expense | 41,462 | 28,326 |
(Gain) loss from sales of investments, assets and other, net | -6,056 | 382 |
Tax benefits from stock-based awards | 436 | |
Excess tax benefits from stock-based awards | -436 | |
Accretion and amortization on marketable securities | 2,087 | 2,786 |
Deferred income taxes | 998 | -7,935 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 10,090 | -3,388 |
Income tax receivable | -1,198 | 135 |
Other assets | -7,687 | -5,292 |
Accounts payable | 1,063 | -8,597 |
Deferred revenue | -15,883 | -6,909 |
Other liabilities | -43,104 | 12,085 |
Net cash provided by (used in) operating activities | -47,002 | -24,246 |
Investing activities: | ||
Purchases of marketable securities | -101,091 | -174,729 |
Sales and maturities of marketable securities | 234,555 | 233,626 |
Acquisition of property and equipment | -2,112 | -1,234 |
Business acquisition, net of cash acquired | -390,993 | |
Proceeds from sale of property and equipment | 4,935 | |
Proceeds from sale of equity method investment | 10,507 | |
Other investing activities, net | 200 | |
Net cash provided by (used in) investing activities | 141,859 | -328,195 |
Financing activities: | ||
Taxes paid related to net share settlement of equity awards | -1,008 | -455 |
Proceeds from employee stock purchase plan and exercise of stock options | 3,390 | 9,509 |
Excess tax benefits from stock-based awards | 436 | |
Acquisition related contingent consideration payment | -10,790 | |
Net cash provided by (used in) financing activities | -8,408 | 9,490 |
Effect of exchange rate changes on cash and cash equivalents | -297 | -119 |
Net increase (decrease) in cash and cash equivalents | 86,152 | -343,070 |
Cash and cash equivalents, beginning of period | 131,303 | 465,523 |
Cash and cash equivalents, end of period | $217,455 | $122,453 |
Overview_and_Summary_of_Signif
Overview and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Overview and Summary of Significant Accounting Policies | 1. Overview and Summary of Significant Accounting Policies |
Organization and Description of Business | |
Zynga Inc. (“Zynga,” “we” or “the Company”) develops, markets, and operates online social games as live services played over the Internet and on social networking sites and mobile platforms. We generate revenue through the in-game sale of virtual goods and through advertising. Our operations are headquartered in San Francisco, California, and we have several operating locations in the U.S., as well as various international office locations in Canada, Asia and Europe. | |
We completed our initial public offering in December 2011 and our Class A common stock is listed on the NASDAQ Global Select Market under the symbol “ZNGA.” | |
Basis of Presentation and Consolidation | |
The accompanying consolidated financial statements are presented in accordance with United States generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the operations of us and our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in the consolidation. | |
The accompanying interim consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2014. | |
Unaudited Interim Financial Information | |
The accompanying interim consolidated balance sheet as of March 31, 2015, the interim consolidated statements of operations, the interim consolidated statements of comprehensive income (loss) for the three months ended March 31, 2015 and 2014, the interim consolidated statements of cash flows for the three months ended March 31, 2015 and 2014 and the related footnote disclosures are unaudited. These unaudited consolidated interim financial statements have been prepared in accordance with U.S. GAAP. In management’s opinion, the unaudited consolidated interim financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s statement of financial position and operating results for the periods presented. The results for the three months ended March 31, 2015 are not necessarily indicative of the results expected for the full fiscal year or any other future period. | |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and notes thereto. Significant estimates and assumptions reflected in the financial statements include, but are not limited to, the estimated lives of virtual goods that we use for revenue recognition, useful lives of property and equipment and intangible assets, accrued liabilities, income taxes, accounting for business combinations, stock-based expense and evaluation of goodwill, intangible assets, and long-lived assets for impairment. Actual results could differ materially from those estimates. | |
Changes in our estimated average life of durable virtual goods during the three months ended March 31, 2015 for various games resulted in an increase in revenue and income from continuing operations of $4.5 million, which is the result of adjusting the remaining recognition period of deferred revenue generated in prior periods at the time of a change in estimate. We also recorded $3.1 million of revenue and income from continuing operations in the three months ended March 31, 2015 due to changes in our estimated average life of durable goods for games that will be discontinued as there is no further service obligation after the closure of these games. These changes in estimates resulted in a $0.01 per share impact on our reported earnings per share for the first quarter of 2015. | |
Accounting Policy Updates | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which requires revenue to be recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 supersedes the existing revenue recognition guidance in “Revenue Recognition (Topic 605)”. In April 2015, the FASB issued an exposure draft to delay the effective date by one year. Under the proposal, the standard would be effective the first quarter of 2018. We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements. |
Marketable_Securities
Marketable Securities | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Marketable Securities | 2. Marketable Securities | ||||||||||||||||
The following tables summarize our amortized cost, gross unrealized gains and losses and fair value of our available-for-sale investments in marketable securities (in thousands): | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Gross | Gross | ||||||||||||||||
Amortized | Unrealized | Unrealized | Aggregate | ||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
U.S. government and government agency debt securities | $ | 343,394 | $ | 99 | $ | (43 | ) | $ | 343,450 | ||||||||
Corporate debt securities | 537,957 | 145 | (156 | ) | 537,946 | ||||||||||||
Total | $ | 881,351 | $ | 244 | $ | (199 | ) | $ | 881,396 | ||||||||
31-Dec-14 | |||||||||||||||||
Gross | Gross | ||||||||||||||||
Amortized | Unrealized | Unrealized | Aggregate | ||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
U.S. government and government agency debt securities | $ | 405,049 | $ | 68 | $ | (135 | ) | $ | 404,982 | ||||||||
Corporate debt securities | 611,950 | 39 | (365 | ) | 611,624 | ||||||||||||
Total | $ | 1,016,999 | $ | 107 | $ | (500 | ) | $ | 1,016,606 | ||||||||
For more detail on our method for determining the fair value of our assets, see Note 3 – “Fair Value Measurements” | |||||||||||||||||
The estimated fair value of available-for-sale marketable securities, classified by their contractual maturities was as follows (in thousands): | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Due within one year | $ | 732,985 | |||||||||||||||
After one year through three years | 148,411 | ||||||||||||||||
Total | $ | 881,396 | |||||||||||||||
Changes in market interest rates and bond yields cause certain of our investments to fall below their cost basis, resulting in unrealized losses on marketable securities. As of March 31, 2015, we had unrealized losses of $0.2 million related to marketable securities that had a fair value of $351.4 million. As of December 31, 2014, we had unrealized losses of $0.5 million related to marketable securities that had a fair value of $621.5 million. None of these securities were in a material continuous unrealized loss position for more than 12 months. | |||||||||||||||||
As of March 31, 2015 and December 31, 2014, we did not consider any of our marketable securities to be other-than-temporarily impaired. When evaluating our investments for other-than-temporary impairment, we review factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer, our ability and intent to hold the security to maturity and whether it is more likely than not that we will be required to sell the investment before recovery of its cost basis. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | 3. Fair Value Measurements | ||||||||||||||||
Our financial instruments consist of cash equivalents, short-term and long-term marketable securities and accounts receivable. Accounts receivable, net is stated at its carrying value, which approximates fair value. | |||||||||||||||||
Cash equivalents and short-term and long-term marketable securities, consisting of money market funds, U.S. government and government agency debt securities, municipal securities and corporate debt securities, are carried at fair value, which is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between knowledgeable and willing market participants. | |||||||||||||||||
Our contingent consideration liability represents the estimated fair value of the additional consideration payable in connection with our acquisition of Spooky Cool Labs LLC (“Spooky Cool Labs”). The amount payable is contingent upon the achievement of certain performance milestones for each of Spooky Cool Labs’ fiscal years ended June 30, 2014 and June 30, 2015. In the first quarter of 2015, we executed an amended agreement with Spooky Cool Labs. Under the terms of the amended agreement, the maximum amount payable by us is $58.8 million, which includes $53.8 million of contingent consideration and $5.0 million related to bonuses. We recorded $9.4 million of expense within research and development in our consolidated statement of operations and paid $53.8 million in the first quarter of 2015 to fully settle the contingent consideration liability balance related to Spooky Cool Labs. The remaining $5.0 million for bonuses will be paid on or before June 30, 2015. | |||||||||||||||||
We initially estimated the acquisition date fair value of the contingent consideration payable using probability-weighted discounted cash flow models, and applied a discount rate that appropriately captured a market participant’s view of the risk associated with the obligations. The significant unobservable inputs used in the fair value measurement of the acquisition-related contingent consideration payable were forecasted future cash flows and the timing of those cash flows. | |||||||||||||||||
Fair value is a market-based measurement that should be determined based on assumptions that knowledgeable and willing market participants would use in pricing an asset or liability. The valuation techniques used to measure the fair value of the Company’s debt instruments and all other financial instruments, all of which have counterparties with high credit ratings, were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. We use a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |||||||||||||||||
Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||||||
Level 2 — Includes inputs, other than Level 1 inputs, that are directly or indirectly observable in the marketplace. | |||||||||||||||||
Level 3 — Unobservable inputs that are supported by little or no market activity. | |||||||||||||||||
The composition of our financial instruments among the three Levels of the fair value hierarchy are as follows (in thousands): | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Money market funds (1) | $ | 120,529 | $ | — | $ | — | $ | 120,529 | |||||||||
U.S. government and government agency debt securities | — | 343,450 | — | 343,450 | |||||||||||||
Corporate debt securities | — | 537,946 | — | 537,946 | |||||||||||||
Total | $ | 120,529 | $ | 881,396 | $ | — | $ | 1,001,925 | |||||||||
31-Dec-14 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Money market funds (1) | $ | 41,595 | $ | — | $ | — | $ | 41,595 | |||||||||
U.S. government and government agency debt securities | — | 404,982 | — | 404,982 | |||||||||||||
Corporate debt securities | — | 611,624 | — | 611,624 | |||||||||||||
Total | $ | 41,595 | $ | 1,016,606 | $ | — | $ | 1,058,201 | |||||||||
Liabilities: | |||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 44,420 | $ | 44,420 | |||||||||
(1) | Includes amounts classified as cash and cash equivalents. |
Property_and_Equipment
Property and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment | 4. Property and Equipment | ||||||||
Property and equipment consist of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Computer equipment | $ | 142,702 | $ | 141,946 | |||||
Software | 31,855 | 31,778 | |||||||
Land | 89,130 | 89,130 | |||||||
Building | 194,574 | 194,574 | |||||||
Furniture and fixtures | 10,747 | 10,616 | |||||||
Leasehold improvements | 9,683 | 9,694 | |||||||
478,691 | 477,738 | ||||||||
Less accumulated depreciation | (190,664 | ) | (179,819 | ) | |||||
Total property and equipment, net | $ | 288,027 | $ | 297,919 | |||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Goodwill and Other Intangible Assets | 5. Goodwill and Other Intangible Assets | ||||||||||||
Changes in the carrying value of goodwill from December 31, 2014 to March 31, 2015 are as follows (in thousands): | |||||||||||||
Goodwill – December 31, 2014 | $ | 650,778 | |||||||||||
Foreign currency translation adjustments (1) | (19,926 | ) | |||||||||||
Goodwill adjustments (2) | 2,659 | ||||||||||||
Goodwill – March 31, 2015 | $ | 633,511 | |||||||||||
(1) | The decrease is primarily related to translation losses on goodwill associated with the acquisition of NaturalMotion denominated in British pounds. | ||||||||||||
(2) | Includes the impact of adjustments to goodwill resulting from changes in net assets (liabilities) acquired (assumed) and other adjustments, pursuant to our business combinations policy. | ||||||||||||
The details of our acquisition-related intangible assets as of March 31, 2015 are as follows (in thousands): | |||||||||||||
March 31, 2015 | |||||||||||||
Gross Carrying | Accumulated | Net Book Value | |||||||||||
Value | Amortization | ||||||||||||
Developed technology | $ | 148,138 | $ | (99,784 | ) | $ | 48,354 | ||||||
Trademarks, branding and domain names | 16,292 | (8,393 | ) | 7,899 | |||||||||
Acquired lease intangibles | 5,707 | (4,282 | ) | 1,425 | |||||||||
Total | $ | 170,137 | $ | (112,459 | ) | $ | 57,678 | ||||||
The details of our acquisition-related intangible assets as of December 31, 2014 are as follows (in thousands): | |||||||||||||
December 31, 2014 | |||||||||||||
Gross Carrying | Accumulated | Net Book Value | |||||||||||
Value | Amortization | ||||||||||||
Developed technology | $ | 151,376 | $ | (94,560 | ) | $ | 56,816 | ||||||
Trademarks, branding and domain names | 16,292 | (7,861 | ) | 8,431 | |||||||||
Acquired lease intangibles | 5,708 | (4,094 | ) | 1,614 | |||||||||
Total | $ | 173,376 | $ | (106,515 | ) | $ | 66,861 | ||||||
These assets were, and continue to be, amortized on a straight-line basis. As of March 31, 2015, future amortization expense related to the intangible assets is expected to be recognized as shown below (in thousands): | |||||||||||||
Year ending December 31: | |||||||||||||
2015 | $ | 19,286 | |||||||||||
2016 | 23,703 | ||||||||||||
2017 | 5,808 | ||||||||||||
2018 and thereafter | 2,761 | ||||||||||||
Total | $ | 51,558 | |||||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes |
The expense from income taxes increased by $8.7 million in the first quarter of 2015 as compared to the same period of the prior year. This increase was primarily attributable to an increase in foreign tax expense of $0.8 million related to a change in our jurisdictional mix of earnings and the tax benefit recorded in the first quarter of 2014 of $7.8 million related the release of the valuation allowance associated with the 2013 Federal research and development tax credit. | |
Once the Company is profitable, we expect our global effective tax rate to be less than the U.S. statutory income tax rate. |
Other_Current_Liabilities
Other Current Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Other Current Liabilities | 7. Other Current Liabilities | ||||||||
Other current liabilities consist of the following (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accrued escrow for acquisitions | $ | 47,906 | $ | 47,906 | |||||
Contingent consideration liability | — | 44,420 | |||||||
Accrued compensation liability | 15,151 | 26,113 | |||||||
Accrued restructuring liability | 6,457 | 7,214 | |||||||
Accrued accounts payable | 19,219 | 17,542 | |||||||
Other current liabilities | 19,843 | 20,955 | |||||||
Total other current liabilities | $ | 108,576 | $ | 164,150 | |||||
Other current liabilities include various expenses that we accrue for transaction taxes, customer deposits and revenue sharing arrangements. |
Restructuring
Restructuring | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Restructuring and Related Activities [Abstract] | |||||
Restructuring | 8. Restructuring | ||||
During the three months ended March 31, 2015, we recorded a total restructuring charge of $3.5 million which was classified within our consolidated statement of operations under General and Administrative. | |||||
Q1 2015 Restructuring Plan | |||||
During the three months ended March 31, 2015, our board of directors authorized, and we implemented a restructuring plan that included a reduction in work force and closure of the Beijing, China office as part of the overall plan to reduce the Company’s long term cost structure. As a result of this restructuring, we recorded a charge of $3.2 million in the three months ended March 31, 2015, which is included in operating expenses in our consolidated statement of operations. The $3.2 million restructuring charge in the three months ended March 31, 2015 is comprised of $2.3 million of employee severance costs and $0.9 million related to lease and contract termination costs. This restructuring charge does not include the impact of $0.1 million of net stock-based expense reversals associated with the net effect of forfeitures from employee terminations. The remaining liability related to our Q1 2015 restructuring plan as of March 31, 2015 was $0.3 million and is expected to be paid by June 30, 2015. | |||||
The following table presents the activity for the three months March 31, 2015 related to the Q1 2015 restructuring plan (in thousands): | |||||
Three Months Ended | |||||
March 31, 2015 | |||||
Restructuring liability - beginning of period | $ | — | |||
Restructuring expense and adjustments | 3,241 | ||||
Cash payments | (2,911 | ) | |||
Restructuring liability (Q1 2015 Plan) - end of period | $ | 330 | |||
Q1 2014 Restructuring Plan | |||||
The following table presents the activity for the three months March 31, 2015 related to the Q1 2014 restructuring plan (in thousands): | |||||
Three Months Ended | |||||
March 31, 2015 | |||||
Restructuring liability - beginning of period | $ | 10,009 | |||
Restructuring expense and adjustments | 189 | ||||
Cash payments | (2,116 | ) | |||
Restructuring liability (Q1 2014 Plan) - end of period | $ | 8,082 | |||
The remaining liability of $8.1 million is expected to be paid out over the next 1.8 years. | |||||
Other Plans | |||||
The following table presents the activity for the three months ended March 31, 2015 related to all other remaining historical restructuring plans from prior years (in thousands): | |||||
Three Months Ended | |||||
March 31, 2015 | |||||
Restructuring liability - beginning of period | $ | 2,857 | |||
Restructuring expense and adjustments | 31 | ||||
Cash payments | (931 | ) | |||
Restructuring liability (2013 Plan) - end of period | $ | 1,957 | |||
The remaining liability of $2.0 million is expected to be paid out over the next 2.6 years. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Stockholders' Equity | 9. Stockholders’ Equity | ||||||||||||||||
We recorded stock-based expense related to grants of employee and consultant stock options, warrants, restricted stock and restricted stock units (“ZSUs”) in our consolidated statements of operations as follows (in thousands): | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Cost of revenue | $ | 1,072 | $ | 1,279 | |||||||||||||
Research and development | 28,317 | 18,416 | |||||||||||||||
Sales and marketing | 1,519 | 1,458 | |||||||||||||||
General and administrative | 10,554 | 7,173 | |||||||||||||||
Total stock-based expense | $ | 41,462 | $ | 28,326 | |||||||||||||
The following table shows stock option activity for the three months ended March 31, 2015 (in thousands, except weighted-average exercise price and weighted-average contractual term): | |||||||||||||||||
Outstanding Options | |||||||||||||||||
Weighted- | Aggregate | Weighted- | |||||||||||||||
Average | Intrinsic Value of | Average | |||||||||||||||
Exercise | Stock Options | Contractual Term | |||||||||||||||
Stock Options | Price | Outstanding | (in years) | ||||||||||||||
Balance as of December 31, 2014 | 39,460 | $ | 2.22 | $ | 47,347 | 6.74 | |||||||||||
Granted | — | — | |||||||||||||||
Forfeited and cancelled | (1,598 | ) | 3.29 | ||||||||||||||
Exercised | (550 | ) | 0.3 | ||||||||||||||
Balance as of March 31, 2015 | 37,312 | $ | 2.2 | $ | 50,028 | 6.5 | |||||||||||
The following table shows a summary of ZSU activity for the three months ended March 31, 2015 (in thousands, except weighted-average grant date fair value): | |||||||||||||||||
Outstanding ZSUs | |||||||||||||||||
Weighted- | Aggregate | ||||||||||||||||
Average Grant Date | Intrinsic Value of | ||||||||||||||||
Fair | Unvested | ||||||||||||||||
Shares | Value | ZSUs | |||||||||||||||
Unvested as of December 31, 2014 | 69,883 | $ | 3.64 | $ | 185,889 | ||||||||||||
Granted | 4,709 | 2.33 | |||||||||||||||
Vested | (6,274 | ) | 4.79 | ||||||||||||||
Forfeited and cancelled | (5,834 | ) | 3.07 | ||||||||||||||
Unvested as of March 31, 2015 | 62,484 | $ | 3.48 | $ | 178,079 | ||||||||||||
The following table shows a summary of changes in accumulated other comprehensive income by component for the three months ended March 31, 2015 (in thousands): | |||||||||||||||||
Foreign Currency | Unrealized Gains (Losses) | Total | |||||||||||||||
Translation | on Available-for-Sale | ||||||||||||||||
Securities | |||||||||||||||||
Balance as of December 31, 2014 | $ | (28,781 | ) | $ | (394 | ) | $ | (29,175 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (22,613 | ) | 453 | (22,160 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | (15 | ) | (15 | ) | ||||||||||||
Net current-period other comprehensive income (loss) | (22,613 | ) | 438 | (22,175 | ) | ||||||||||||
Balance as of March 31, 2015 | $ | (51,394 | ) | $ | 44 | $ | (51,350 | ) | |||||||||
Net_Income_Loss_Per_Share_of_C
Net Income (Loss) Per Share of Common Stock | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||
Net Income (Loss) Per Share of Common Stock | 10. Net Income (Loss) Per Share of Common Stock | ||||||||||||||||||||||||
Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. In computing diluted net income (loss) per share, net income (loss) is re-allocated to reflect the potential impact of dilutive securities, including stock options, warrants, unvested restricted stock and unvested ZSUs. Diluted net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding, including potential dilutive securities. For periods in which we have generated a net loss, we do not include stock options, warrants, unvested restricted stock and unvested ZSUs in our computation of diluted net income (loss) per share, as the impact of these awards is anti-dilutive. The net per share amounts are the same for Class A, Class B and Class C common stock because the holders of each class are legally entitled to equal per share distributions whether through dividend or distribution. Further, as we assume the conversion of Class B and Class C common shares into Class A common shares for the Class A diluted net income (loss) per share computation, the net income (loss) is equal to total net income (loss) for that computation. | |||||||||||||||||||||||||
The following table sets forth the computation of basic and diluted net income (loss) per share of common stock (in thousands, except per share data): | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Class | Class | Class | Class | Class | Class | ||||||||||||||||||||
A | B | C | A | B | C | ||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
BASIC: | |||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | (39,525 | ) | $ | (5,909 | ) | $ | (1,062 | ) | $ | (50,782 | ) | $ | (8,924 | ) | $ | (1,477 | ) | |||||||
Weighted-average common shares outstanding | 763,658 | 114,169 | 20,517 | 705,627 | 124,004 | 20,517 | |||||||||||||||||||
Basic net income (loss) per share | $ | (0.05 | ) | $ | (0.05 | ) | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.07 | ) | $ | (0.07 | ) | |||||||
DILUTED: | |||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | (39,525 | ) | $ | (5,909 | ) | $ | (1,062 | ) | $ | (50,782 | ) | $ | (8,924 | ) | $ | (1,477 | ) | |||||||
Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares | (1,062 | ) | — | — | (1,477 | ) | — | — | |||||||||||||||||
Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares | (5,909 | ) | — | — | (8,924 | ) | — | — | |||||||||||||||||
Net income (loss) attributable to common stockholders-diluted | $ | (46,496 | ) | $ | (5,909 | ) | $ | (1,062 | ) | $ | (61,183 | ) | $ | (8,924 | ) | $ | (1,477 | ) | |||||||
Weighted-average common shares outstanding-basic | 763,658 | 114,169 | 20,517 | 705,627 | 124,004 | 20,517 | |||||||||||||||||||
Conversion of Class C to Class A common shares | 20,517 | — | — | 20,517 | — | — | |||||||||||||||||||
Conversion of Class B to Class A common shares | 114,169 | — | — | 124,004 | — | — | |||||||||||||||||||
Weighted-average common shares outstanding-diluted | 898,344 | 114,169 | 20,517 | 850,148 | 124,004 | 20,517 | |||||||||||||||||||
Diluted net income (loss) per share | $ | (0.05 | ) | $ | (0.05 | ) | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.07 | ) | $ | (0.07 | ) | |||||||
The following weighted-average equity awards were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive for the periods presented (in thousands): | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Stock options | 38,798 | 42,027 | |||||||||||||||||||||||
Restricted shares | 11,129 | 9,081 | |||||||||||||||||||||||
ZSUs | 68,127 | 58,817 | |||||||||||||||||||||||
Total | 118,054 | 109,925 | |||||||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | 11. Commitments and Contingencies | ||||
Lease Commitments | |||||
We have entered into operating leases for facilities, including data center space. As of March 31, 2015, future minimum lease payments related to these leases are as follows (in thousands): | |||||
Year ending December 31: | |||||
2015 | $ | 19,043 | |||
2016 | 23,638 | ||||
2017 | 14,292 | ||||
2018 | 13,074 | ||||
2019 | 13,234 | ||||
2020 and thereafter | 21,918 | ||||
$ | 105,199 | ||||
Credit Facility | |||||
In June 2013, we amended our existing revolving credit agreement which we originally executed in July 2011, reducing our maximum available credit from $1.0 billion to $200 million, and extending the term through June 2018. Per the terms of our amended agreement, we paid additional up-front fees of $0.3 million to be amortized over the remaining extended term of the loan. The interest rate for the amended credit facility is determined based on a formula using certain market rates, as described in the amended credit agreement. Additionally, our minimum quarterly commitment fee was reduced from $0.6 million per quarter to $0.1 million per quarter based on the portion of the credit facility that is not drawn down. The agreement requires us to comply with certain covenants, including maintaining a minimum capitalization ratio, and maintaining a minimum cash balance. As of March 31, 2015, we had not drawn down any amounts under the credit facility and were in compliance with these covenants. | |||||
Legal Matters | |||||
On July 30, 2012, a purported securities class action captioned DeStefano v. Zynga Inc. et al., Case No. 3:12-cv-04007-JSW, was filed in the United States District Court for the Northern District of California against the Company, and certain of our current and former directors, officers, and executives. Additional purported securities class actions containing similar allegations were filed in the Northern District. On September 26, 2012, the court consolidated various of the class actions as In re Zynga Inc. Securities Litigation, Lead Case No. 12-cv-04007-JSW. On January 23, 2013, the court entered an order appointing a lead plaintiff and approving lead plaintiff’s selection of lead counsel. On April 3, 2013, the lead plaintiff and another named plaintiff filed a consolidated complaint. On February 25, 2014, the court granted the defendants’ motion to dismiss the consolidated complaint and provided plaintiffs leave to file an amended complaint. | |||||
The lead plaintiff filed a First Amended Complaint on March 31, 2014. The First Amended Complaint alleges that the defendants violated the federal securities laws by issuing false or misleading statements regarding the Company’s business and financial projections. The plaintiffs seek to represent a class of persons who purchased or otherwise acquired the Company’s securities between February 14, 2012 and July 25, 2012. The First Amended Complaint asserts claims for unspecified damages, and an award of costs and expenses to the putative class, including attorneys’ fees. On March 25, 2015, the Court issued an order denying the defendants’ motion to dismiss the First Amended Complaint. On April 21, 2015, the defendants requested leave to file a motion for reconsideration of that order. On April 24, 2015, the plaintiffs opposed the motion. On April 28, 2015, the Court denied the defendants’ motion. A case management conference is scheduled for June 12, 2015. | |||||
In addition, a purported securities class action captioned Reyes v. Zynga Inc., et al. was filed on August 1, 2012, in San Francisco County Superior Court. The action was removed to federal court, and was later remanded to San Francisco County Superior Court. The complaint alleges that the defendants violated the federal securities laws by issuing false or misleading statements in connection with an April 2012 secondary offering of Class A common stock. The plaintiff seeks to represent a class of persons who acquired the Company’s common stock pursuant or traceable to the secondary offering. On June 10, 2013, the defendants filed a motion to stay the action and a demurrer arguing that the complaint should be dismissed because the court lacks jurisdiction over the claims. On August 26, 2013, the court issued orders overruling the demurrer and granting the motion to stay all deadlines in the action pending a ruling on the motion to dismiss in the federal securities class action described above. On September 29, 2014, the court issued orders denying a motion to continue the stay of the action and overruling a demurrer arguing that the complaint failed to state a cause of action. On October 15, 2014, the defendants filed a petition in the California Court of Appeal seeking review of the denial of the motion to stay and of the trial court’s ruling that it had jurisdiction to hear the claims. On January 29, 2015, the Court of Appeal denied defendants’ petition. On February 11, 2015, the court granted plaintiff’s request for voluntary dismissal of the action with prejudice as to the named plaintiff’s claims and without prejudice as to the claims of any other members of the proposed class. | |||||
On April 4, 2013, a purported class action captioned Lee v. Pincus, et al. was filed in the Court of Chancery of the State of Delaware against the Company, and certain of our current and former directors, officers, and executives. The complaint alleges that the defendants breached fiduciary duties in connection with the release of certain lock-up agreements entered into in connection with the Company’s initial public offering. The plaintiff seeks to represent a class of certain of the Company’s shareholders who were subject to the lock-up agreements and who were not permitted to sell shares in an April 2012 secondary offering. On January 17, 2014, the plaintiff filed an amended complaint. On March 6, 2014, the defendants filed motions to dismiss the amended complaint and a motion to stay discovery while the motions to dismiss were pending. On November 14, 2014, the court denied the motion to dismiss brought by Zynga and the directors and granted the motion to dismiss brought by the underwriters who had been named as defendants. | |||||
Although it is reasonably possible that our assessment of the possibility of loss could change in the near term due to one or more confirming events, the Company believes it has meritorious defenses in the above securities class actions and will vigorously defend these actions. Furthermore, given that we are in the early stages of the litigation process, we are unable to estimate the range of potential loss, if any. | |||||
Since August 3, 2012, nine stockholder derivative lawsuits have been filed in State or Federal courts in California and Delaware purportedly on behalf of the Company against certain current and former directors and executive officers of the Company. The derivative plaintiffs allege that the defendants breached their fiduciary duties and violated California Corporations Code section 25402 in connection with our initial public offering in December 2011, secondary offering in April 2012, and allegedly made false or misleading statements regarding the Company’s business and financial projections. | |||||
Beginning on August 3, 2012, three of the actions were filed in San Francisco County Superior Court. On October 2, 2012, the court consolidated those three actions as In re Zynga Shareholder Derivative Litigation, Lead Case CGC-12-522934. On March 14, 2013, the plaintiffs filed a First Amended Complaint in that consolidated California state action. On March 21, 2013, the court endorsed a stipulation among the parties staying the action pending the ruling on the motion to dismiss in the federal securities class action described above. On March 24, 2014, the court endorsed a stipulation among the parties staying the action pending a ruling on a motion to dismiss the First Amended Complaint in the federal securities class action. The parties have requested that the stay remain in effect pending a ruling on the motion to stay or dismiss the derivative action pending in Delaware Chancery Court (discussed below). | |||||
Beginning on August 16, 2012, four stockholder derivative actions were filed in the United States District Court for the Northern District of California. On December 3, 2012, the court consolidated these four actions as In re Zynga Inc. Derivative Litigation, Lead Case No. 12-CV-4327-JSW. On March 11, 2013, the court endorsed a stipulation among the parties staying the action pending the ruling on the motion to dismiss in the federal securities class action described above. On March 21, 2014, the court issued an order continuing the stay pending a ruling on a motion to dismiss the First Amended Complaint in the federal securities class action. The parties have requested that the stay remain in effect pending a ruling on the motion to stay or dismiss the derivative action pending in Delaware Chancery Court (discussed below). | |||||
A derivative action was also filed in the United States District Court for the District of Delaware. The plaintiff in the District of Delaware action voluntarily dismissed the action on November 19, 2012. | |||||
On April 2, 2014, a derivative action was filed in the Court of Chancery of the State of Delaware entitled Sandys v. Pincus, et al. Case No. 9512-VCN. On October 21, 2014, the court endorsed a stipulation among the parties staying the action until the earlier of December 9, 2014, or thirty days after a decision on the motion to dismiss the First Amended Complaint in the federal securities class action. On December 9, 2014, the defendants filed a motion to stay or dismiss the action. Briefing on the motion to stay or dismiss is ongoing and is scheduled to continue through May 15, 2015. | |||||
The derivative actions include claims for, among other things, unspecified damages in favor of the Company, certain corporate actions to purportedly improve the Company’s corporate governance, and an award of costs and expenses to the derivative plaintiffs, including attorneys’ fees. We believe that the plaintiffs in the derivative actions lack standing to pursue litigation on behalf of Zynga. | |||||
Because the actions described above are in the early stages of the litigation process, we are not in a position to assess whether any loss or adverse effect on our financial condition is probable or remote or to estimate the range of potential loss, if any. | |||||
The Company is also party to various other legal proceedings and claims which arise in the ordinary course of business. In addition, we may receive notifications alleging infringement of patent or other intellectual property rights. Adverse results in any such litigation, legal proceedings or claims may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing us from offering certain games, features, or services, and may also result in changes in our business practices, which could result in additional costs or a loss of revenue for us and could otherwise harm our business. Although the results of such litigation cannot be predicted with certainty, we believe that the amount or range of reasonably possible losses related to such pending or threatened litigation will not have a material adverse effect on our business, operating results, cash flows, or financial condition should such litigation be resolved unfavorably. We recognize legal expenses as incurred. |
Geographical_Information
Geographical Information | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Geographical Information | 12. Geographical Information | ||||||||
The following represents our revenue based on the geographic location of our players (in thousands): | |||||||||
Revenue | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
United States | $ | 117,540 | $ | 99,105 | |||||
All other countries (1) | 65,753 | 68,915 | |||||||
Total revenue | $ | 183,293 | $ | 168,020 | |||||
(1) | No country exceeded 10% of our total revenue for any periods presented. | ||||||||
The following represents our property and equipment, net by location (in thousands): | |||||||||
Property and equipment, net | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
United States | $ | 285,074 | $ | 294,708 | |||||
All other countries | 2,953 | 3,211 | |||||||
Total property and equipment, net | $ | 288,027 | $ | 297,919 | |||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events |
Changes in Executive Officers | |
On April 8, 2015, Don Mattrick resigned as Chief Executive Officer. The Board appointed Mark Pincus, Zynga’s Chairman of the Board, as Zynga’s Chief Executive Officer. Mr. Pincus is our Founder and had previously served as Zynga’s Chief Executive Officer from April 2007 to July 2013. In addition, he served as Chief Product Officer from April 2007 to April 2014 and has served as Chairman of the Board since April 2007. | |
On April 19, 2015, Clive Downie resigned as Chief Operating Officer. | |
On May 6, 2015, we announced a cost reduction plan expected to generate pre-tax savings of approximately $100 million, excluding an estimated $18 million to $22 million pre-tax restructuring charge in the second quarter of 2015. As part of the plan, we expect to complete a reduction of approximately 18% of our current workforce across our studios, including contractors, and implement additional cost reduction measures, including lowering costs and eliminating spend on outside and centralized services. We expect the workforce reduction to be complete in the fourth quarter of 2015 and generate approximately $45 million in annualized savings. We expect the reduction in centralized services costs and spend to be complete by the third quarter of 2016 and generate approximately $55 million in annualized savings. All savings estimates exclude restructuring charges. | |
This cost reduction plan could negatively impact our ability to attract, hire and retain key employees, which is critical to our ability to grow our business and execute on our business strategy. In addition, our cost-cutting measures could negatively impact our business including delaying the introduction of new games and/or disrupting live services. For more information on risks, please see the section titled “Risk Factors”. |
Overview_and_Summary_of_Signif1
Overview and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation |
The accompanying consolidated financial statements are presented in accordance with United States generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the operations of us and our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in the consolidation. | |
The accompanying interim consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2014. | |
Unaudited Interim Financial Information | Unaudited Interim Financial Information |
The accompanying interim consolidated balance sheet as of March 31, 2015, the interim consolidated statements of operations, the interim consolidated statements of comprehensive income (loss) for the three months ended March 31, 2015 and 2014, the interim consolidated statements of cash flows for the three months ended March 31, 2015 and 2014 and the related footnote disclosures are unaudited. These unaudited consolidated interim financial statements have been prepared in accordance with U.S. GAAP. In management’s opinion, the unaudited consolidated interim financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s statement of financial position and operating results for the periods presented. The results for the three months ended March 31, 2015 are not necessarily indicative of the results expected for the full fiscal year or any other future period. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and notes thereto. Significant estimates and assumptions reflected in the financial statements include, but are not limited to, the estimated lives of virtual goods that we use for revenue recognition, useful lives of property and equipment and intangible assets, accrued liabilities, income taxes, accounting for business combinations, stock-based expense and evaluation of goodwill, intangible assets, and long-lived assets for impairment. Actual results could differ materially from those estimates. | |
Changes in our estimated average life of durable virtual goods during the three months ended March 31, 2015 for various games resulted in an increase in revenue and income from continuing operations of $4.5 million, which is the result of adjusting the remaining recognition period of deferred revenue generated in prior periods at the time of a change in estimate. We also recorded $3.1 million of revenue and income from continuing operations in the three months ended March 31, 2015 due to changes in our estimated average life of durable goods for games that will be discontinued as there is no further service obligation after the closure of these games. These changes in estimates resulted in a $0.01 per share impact on our reported earnings per share for the first quarter of 2015. | |
Accounting Policy Updates | Accounting Policy Updates |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which requires revenue to be recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 supersedes the existing revenue recognition guidance in “Revenue Recognition (Topic 605)”. In April 2015, the FASB issued an exposure draft to delay the effective date by one year. Under the proposal, the standard would be effective the first quarter of 2018. We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements. | |
Fair Value of Financial Instruments | Our financial instruments consist of cash equivalents, short-term and long-term marketable securities and accounts receivable. Accounts receivable, net is stated at its carrying value, which approximates fair value. |
Cash equivalents and short-term and long-term marketable securities, consisting of money market funds, U.S. government and government agency debt securities, municipal securities and corporate debt securities, are carried at fair value, which is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between knowledgeable and willing market participants. | |
Our contingent consideration liability represents the estimated fair value of the additional consideration payable in connection with our acquisition of Spooky Cool Labs LLC (“Spooky Cool Labs”). The amount payable is contingent upon the achievement of certain performance milestones for each of Spooky Cool Labs’ fiscal years ended June 30, 2014 and June 30, 2015. In the first quarter of 2015, we executed an amended agreement with Spooky Cool Labs. Under the terms of the amended agreement, the maximum amount payable by us is $58.8 million, which includes $53.8 million of contingent consideration and $5.0 million related to bonuses. We recorded $9.4 million of expense within research and development in our consolidated statement of operations and paid $53.8 million in the first quarter of 2015 to fully settle the contingent consideration liability balance related to Spooky Cool Labs. The remaining $5.0 million for bonuses will be paid on or before June 30, 2015. | |
Fair Value Measurement | Fair value is a market-based measurement that should be determined based on assumptions that knowledgeable and willing market participants would use in pricing an asset or liability. The valuation techniques used to measure the fair value of the Company’s debt instruments and all other financial instruments, all of which have counterparties with high credit ratings, were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. We use a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: |
Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. | |
Level 2 — Includes inputs, other than Level 1 inputs, that are directly or indirectly observable in the marketplace. | |
Level 3 — Unobservable inputs that are supported by little or no market activity. |
Marketable_Securities_Tables
Marketable Securities (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Summary of Available-for-Sale Investments | The following tables summarize our amortized cost, gross unrealized gains and losses and fair value of our available-for-sale investments in marketable securities (in thousands): | ||||||||||||||||
March 31, 2015 | |||||||||||||||||
Gross | Gross | ||||||||||||||||
Amortized | Unrealized | Unrealized | Aggregate | ||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
U.S. government and government agency debt securities | $ | 343,394 | $ | 99 | $ | (43 | ) | $ | 343,450 | ||||||||
Corporate debt securities | 537,957 | 145 | (156 | ) | 537,946 | ||||||||||||
Total | $ | 881,351 | $ | 244 | $ | (199 | ) | $ | 881,396 | ||||||||
31-Dec-14 | |||||||||||||||||
Gross | Gross | ||||||||||||||||
Amortized | Unrealized | Unrealized | Aggregate | ||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
U.S. government and government agency debt securities | $ | 405,049 | $ | 68 | $ | (135 | ) | $ | 404,982 | ||||||||
Corporate debt securities | 611,950 | 39 | (365 | ) | 611,624 | ||||||||||||
Total | $ | 1,016,999 | $ | 107 | $ | (500 | ) | $ | 1,016,606 | ||||||||
Fair Value of Available-for-Sale Marketable Securities by Contractual Maturities | The estimated fair value of available-for-sale marketable securities, classified by their contractual maturities was as follows (in thousands): | ||||||||||||||||
March 31, 2015 | |||||||||||||||||
Due within one year | $ | 732,985 | |||||||||||||||
After one year through three years | 148,411 | ||||||||||||||||
Total | $ | 881,396 | |||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Assets Measured on Recurring Basis | The composition of our financial instruments among the three Levels of the fair value hierarchy are as follows (in thousands): | ||||||||||||||||
March 31, 2015 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Money market funds (1) | $ | 120,529 | $ | — | $ | — | $ | 120,529 | |||||||||
U.S. government and government agency debt securities | — | 343,450 | — | 343,450 | |||||||||||||
Corporate debt securities | — | 537,946 | — | 537,946 | |||||||||||||
Total | $ | 120,529 | $ | 881,396 | $ | — | $ | 1,001,925 | |||||||||
31-Dec-14 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Money market funds (1) | $ | 41,595 | $ | — | $ | — | $ | 41,595 | |||||||||
U.S. government and government agency debt securities | — | 404,982 | — | 404,982 | |||||||||||||
Corporate debt securities | — | 611,624 | — | 611,624 | |||||||||||||
Total | $ | 41,595 | $ | 1,016,606 | $ | — | $ | 1,058,201 | |||||||||
Liabilities: | |||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 44,420 | $ | 44,420 | |||||||||
(1) | Includes amounts classified as cash and cash equivalents. |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Components of Property and Equipment | Property and equipment consist of the following (in thousands): | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Computer equipment | $ | 142,702 | $ | 141,946 | |||||
Software | 31,855 | 31,778 | |||||||
Land | 89,130 | 89,130 | |||||||
Building | 194,574 | 194,574 | |||||||
Furniture and fixtures | 10,747 | 10,616 | |||||||
Leasehold improvements | 9,683 | 9,694 | |||||||
478,691 | 477,738 | ||||||||
Less accumulated depreciation | (190,664 | ) | (179,819 | ) | |||||
Total property and equipment, net | $ | 288,027 | $ | 297,919 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Schedule of Goodwill | Changes in the carrying value of goodwill from December 31, 2014 to March 31, 2015 are as follows (in thousands): | ||||||||||||
Goodwill – December 31, 2014 | $ | 650,778 | |||||||||||
Foreign currency translation adjustments (1) | (19,926 | ) | |||||||||||
Goodwill adjustments (2) | 2,659 | ||||||||||||
Goodwill – March 31, 2015 | $ | 633,511 | |||||||||||
(1) | The decrease is primarily related to translation losses on goodwill associated with the acquisition of NaturalMotion denominated in British pounds. | ||||||||||||
(2) | Includes the impact of adjustments to goodwill resulting from changes in net assets (liabilities) acquired (assumed) and other adjustments, pursuant to our business combinations policy. | ||||||||||||
Acquisition-Related Intangible Assets | The details of our acquisition-related intangible assets as of March 31, 2015 are as follows (in thousands): | ||||||||||||
March 31, 2015 | |||||||||||||
Gross Carrying | Accumulated | Net Book Value | |||||||||||
Value | Amortization | ||||||||||||
Developed technology | $ | 148,138 | $ | (99,784 | ) | $ | 48,354 | ||||||
Trademarks, branding and domain names | 16,292 | (8,393 | ) | 7,899 | |||||||||
Acquired lease intangibles | 5,707 | (4,282 | ) | 1,425 | |||||||||
Total | $ | 170,137 | $ | (112,459 | ) | $ | 57,678 | ||||||
The details of our acquisition-related intangible assets as of December 31, 2014 are as follows (in thousands): | |||||||||||||
December 31, 2014 | |||||||||||||
Gross Carrying | Accumulated | Net Book Value | |||||||||||
Value | Amortization | ||||||||||||
Developed technology | $ | 151,376 | $ | (94,560 | ) | $ | 56,816 | ||||||
Trademarks, branding and domain names | 16,292 | (7,861 | ) | 8,431 | |||||||||
Acquired lease intangibles | 5,708 | (4,094 | ) | 1,614 | |||||||||
Total | $ | 173,376 | $ | (106,515 | ) | $ | 66,861 | ||||||
Schedule of Finite Lived Intangible Assets Future Amortization Expense | As of March 31, 2015, future amortization expense related to the intangible assets is expected to be recognized as shown below (in thousands): | ||||||||||||
Year ending December 31: | |||||||||||||
2015 | $ | 19,286 | |||||||||||
2016 | 23,703 | ||||||||||||
2017 | 5,808 | ||||||||||||
2018 and thereafter | 2,761 | ||||||||||||
Total | $ | 51,558 | |||||||||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accrued escrow for acquisitions | $ | 47,906 | $ | 47,906 | |||||
Contingent consideration liability | — | 44,420 | |||||||
Accrued compensation liability | 15,151 | 26,113 | |||||||
Accrued restructuring liability | 6,457 | 7,214 | |||||||
Accrued accounts payable | 19,219 | 17,542 | |||||||
Other current liabilities | 19,843 | 20,955 | |||||||
Total other current liabilities | $ | 108,576 | $ | 164,150 | |||||
Restructuring_Tables
Restructuring (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Restructuring and Related Activities [Abstract] | |||||
Summary of Historical Restructuring Liability | The following table presents the activity for the three months March 31, 2015 related to the Q1 2015 restructuring plan (in thousands): | ||||
Three Months Ended | |||||
March 31, 2015 | |||||
Restructuring liability - beginning of period | $ | — | |||
Restructuring expense and adjustments | 3,241 | ||||
Cash payments | (2,911 | ) | |||
Restructuring liability (Q1 2015 Plan) - end of period | $ | 330 | |||
Q1 2014 Restructuring Plan | |||||
The following table presents the activity for the three months March 31, 2015 related to the Q1 2014 restructuring plan (in thousands): | |||||
Three Months Ended | |||||
March 31, 2015 | |||||
Restructuring liability - beginning of period | $ | 10,009 | |||
Restructuring expense and adjustments | 189 | ||||
Cash payments | (2,116 | ) | |||
Restructuring liability (Q1 2014 Plan) - end of period | $ | 8,082 | |||
Other Plans | |||||
The following table presents the activity for the three months ended March 31, 2015 related to all other remaining historical restructuring plans from prior years (in thousands): | |||||
Three Months Ended | |||||
March 31, 2015 | |||||
Restructuring liability - beginning of period | $ | 2,857 | |||
Restructuring expense and adjustments | 31 | ||||
Cash payments | (931 | ) | |||
Restructuring liability (2013 Plan) - end of period | $ | 1,957 | |||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Stock-Based Expense Related to Grants of Employee and Consultant Stock Options, Warrants, Restricted Stock and Restricted Stock Units (ZSUs) | We recorded stock-based expense related to grants of employee and consultant stock options, warrants, restricted stock and restricted stock units (“ZSUs”) in our consolidated statements of operations as follows (in thousands): | ||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Cost of revenue | $ | 1,072 | $ | 1,279 | |||||||||||||
Research and development | 28,317 | 18,416 | |||||||||||||||
Sales and marketing | 1,519 | 1,458 | |||||||||||||||
General and administrative | 10,554 | 7,173 | |||||||||||||||
Total stock-based expense | $ | 41,462 | $ | 28,326 | |||||||||||||
Schedule of Share Based Compensation Stock Option Activity | The following table shows stock option activity for the three months ended March 31, 2015 (in thousands, except weighted-average exercise price and weighted-average contractual term): | ||||||||||||||||
Outstanding Options | |||||||||||||||||
Weighted- | Aggregate | Weighted- | |||||||||||||||
Average | Intrinsic Value of | Average | |||||||||||||||
Exercise | Stock Options | Contractual Term | |||||||||||||||
Stock Options | Price | Outstanding | (in years) | ||||||||||||||
Balance as of December 31, 2014 | 39,460 | $ | 2.22 | $ | 47,347 | 6.74 | |||||||||||
Granted | — | — | |||||||||||||||
Forfeited and cancelled | (1,598 | ) | 3.29 | ||||||||||||||
Exercised | (550 | ) | 0.3 | ||||||||||||||
Balance as of March 31, 2015 | 37,312 | $ | 2.2 | $ | 50,028 | 6.5 | |||||||||||
Schedule of Share Based Compensation Restricted Stock Units Award Activity | The following table shows a summary of ZSU activity for the three months ended March 31, 2015 (in thousands, except weighted-average grant date fair value): | ||||||||||||||||
Outstanding ZSUs | |||||||||||||||||
Weighted- | Aggregate | ||||||||||||||||
Average Grant Date | Intrinsic Value of | ||||||||||||||||
Fair | Unvested | ||||||||||||||||
Shares | Value | ZSUs | |||||||||||||||
Unvested as of December 31, 2014 | 69,883 | $ | 3.64 | $ | 185,889 | ||||||||||||
Granted | 4,709 | 2.33 | |||||||||||||||
Vested | (6,274 | ) | 4.79 | ||||||||||||||
Forfeited and cancelled | (5,834 | ) | 3.07 | ||||||||||||||
Unvested as of March 31, 2015 | 62,484 | $ | 3.48 | $ | 178,079 | ||||||||||||
Schedule of Accumulated Other Comprehensive Income Loss | The following table shows a summary of changes in accumulated other comprehensive income by component for the three months ended March 31, 2015 (in thousands): | ||||||||||||||||
Foreign Currency | Unrealized Gains (Losses) | Total | |||||||||||||||
Translation | on Available-for-Sale | ||||||||||||||||
Securities | |||||||||||||||||
Balance as of December 31, 2014 | $ | (28,781 | ) | $ | (394 | ) | $ | (29,175 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (22,613 | ) | 453 | (22,160 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | (15 | ) | (15 | ) | ||||||||||||
Net current-period other comprehensive income (loss) | (22,613 | ) | 438 | (22,175 | ) | ||||||||||||
Balance as of March 31, 2015 | $ | (51,394 | ) | $ | 44 | $ | (51,350 | ) | |||||||||
Net_Income_Loss_Per_Share_of_C1
Net Income (Loss) Per Share of Common Stock (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share of Common Stock | The following table sets forth the computation of basic and diluted net income (loss) per share of common stock (in thousands, except per share data): | ||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Class | Class | Class | Class | Class | Class | ||||||||||||||||||||
A | B | C | A | B | C | ||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
BASIC: | |||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | (39,525 | ) | $ | (5,909 | ) | $ | (1,062 | ) | $ | (50,782 | ) | $ | (8,924 | ) | $ | (1,477 | ) | |||||||
Weighted-average common shares outstanding | 763,658 | 114,169 | 20,517 | 705,627 | 124,004 | 20,517 | |||||||||||||||||||
Basic net income (loss) per share | $ | (0.05 | ) | $ | (0.05 | ) | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.07 | ) | $ | (0.07 | ) | |||||||
DILUTED: | |||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | (39,525 | ) | $ | (5,909 | ) | $ | (1,062 | ) | $ | (50,782 | ) | $ | (8,924 | ) | $ | (1,477 | ) | |||||||
Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares | (1,062 | ) | — | — | (1,477 | ) | — | — | |||||||||||||||||
Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares | (5,909 | ) | — | — | (8,924 | ) | — | — | |||||||||||||||||
Net income (loss) attributable to common stockholders-diluted | $ | (46,496 | ) | $ | (5,909 | ) | $ | (1,062 | ) | $ | (61,183 | ) | $ | (8,924 | ) | $ | (1,477 | ) | |||||||
Weighted-average common shares outstanding-basic | 763,658 | 114,169 | 20,517 | 705,627 | 124,004 | 20,517 | |||||||||||||||||||
Conversion of Class C to Class A common shares | 20,517 | — | — | 20,517 | — | — | |||||||||||||||||||
Conversion of Class B to Class A common shares | 114,169 | — | — | 124,004 | — | — | |||||||||||||||||||
Weighted-average common shares outstanding-diluted | 898,344 | 114,169 | 20,517 | 850,148 | 124,004 | 20,517 | |||||||||||||||||||
Diluted net income (loss) per share | $ | (0.05 | ) | $ | (0.05 | ) | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.07 | ) | $ | (0.07 | ) | |||||||
Weighted Average Employee Equity Awards | The following weighted-average equity awards were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive for the periods presented (in thousands): | ||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Stock options | 38,798 | 42,027 | |||||||||||||||||||||||
Restricted shares | 11,129 | 9,081 | |||||||||||||||||||||||
ZSUs | 68,127 | 58,817 | |||||||||||||||||||||||
Total | 118,054 | 109,925 | |||||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Lease Payments for Operating Leases | As of March 31, 2015, future minimum lease payments related to these leases are as follows (in thousands): | ||||
Year ending December 31: | |||||
2015 | $ | 19,043 | |||
2016 | 23,638 | ||||
2017 | 14,292 | ||||
2018 | 13,074 | ||||
2019 | 13,234 | ||||
2020 and thereafter | 21,918 | ||||
$ | 105,199 | ||||
Geographical_Information_Table
Geographical Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Revenue by Geographical Area | The following represents our revenue based on the geographic location of our players (in thousands): | ||||||||
Revenue | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
United States | $ | 117,540 | $ | 99,105 | |||||
All other countries (1) | 65,753 | 68,915 | |||||||
Total revenue | $ | 183,293 | $ | 168,020 | |||||
(1) | No country exceeded 10% of our total revenue for any periods presented. | ||||||||
Property and Equipment, Net | The following represents our property and equipment, net by location (in thousands): | ||||||||
Property and equipment, net | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
United States | $ | 285,074 | $ | 294,708 | |||||
All other countries | 2,953 | 3,211 | |||||||
Total property and equipment, net | $ | 288,027 | $ | 297,919 | |||||
Overview_and_Summary_of_Signif2
Overview and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Initial offering period | Dec-11 |
Increase in revenue and income from continuing operations | $4.50 |
Revenue and income from continuing operations | $3.10 |
Impact on reported earnings per share | $0.01 |
Marketable_Securities_Summary_
Marketable Securities - Summary of Available-for-Sale Investments (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $881,351 | $1,016,999 |
Gross Unrealized Gains | 244 | 107 |
Gross Unrealized Losses | -199 | -500 |
Aggregate Fair Value | 881,396 | 1,016,606 |
U.S. government and government agency debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 343,394 | 405,049 |
Gross Unrealized Gains | 99 | 68 |
Gross Unrealized Losses | -43 | -135 |
Aggregate Fair Value | 343,450 | 404,982 |
Corporate debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 537,957 | 611,950 |
Gross Unrealized Gains | 145 | 39 |
Gross Unrealized Losses | -156 | -365 |
Aggregate Fair Value | $537,946 | $611,624 |
Marketable_Securities_Fair_Val
Marketable Securities - Fair Value of Available-for-Sale Marketable Securities by Contractual Maturities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Marketable Securities [Abstract] | ||
Due within one year | $732,985 | |
After one year through three years | 148,411 | 231,385 |
Aggregate Fair Value | $881,396 | $1,016,606 |
Marketable_Securities_Addition
Marketable Securities - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Marketable Securities [Abstract] | ||
Unrealized losses | $200,000 | $500,000 |
Fair value | 351,400,000 | 621,500,000 |
Available-for-sale securities, continuous unrealized loss position, less than twelve months, fair value | $0 | $0 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Maximum amount payable | $58.80 |
Contingent consideration payable | 53.8 |
Business combination related to bonuses | 5 |
Business combination bonuses to be paid | 5 |
Contingent consideration liability settled | 53.8 |
Research and development [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Change in fair value of contingent consideration liability | $9.40 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value Assets Measured on Recurring Basis (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | $1,001,925 | $1,058,201 |
Contingent consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 44,420 | |
Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 120,529 | 41,595 |
U.S. government and government agency debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 343,450 | 404,982 |
Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 537,946 | 611,624 |
Fair value, inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 120,529 | 41,595 |
Fair value, inputs, Level 1 [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 120,529 | 41,595 |
Fair value, inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 881,396 | 1,016,606 |
Fair value, inputs, Level 2 [Member] | U.S. government and government agency debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 343,450 | 404,982 |
Fair value, inputs, Level 2 [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 537,946 | 611,624 |
Fair value, inputs, Level 3 [Member] | Contingent consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | $44,420 |
Property_and_Equipment_Compone
Property and Equipment - Components of Property and Equipment (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $478,691 | $477,738 |
Less accumulated depreciation | -190,664 | -179,819 |
Total property and equipment, net | 288,027 | 297,919 |
Computer equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 142,702 | 141,946 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 89,130 | 89,130 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 194,574 | 194,574 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,747 | 10,616 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,683 | 9,694 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $31,855 | $31,778 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Schedule of Goodwill (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $650,778 |
Foreign currency translation adjustments | -19,926 |
Goodwill adjustments | 2,659 |
Goodwill, ending balance | $633,511 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Acquisition-Related Intangible Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $170,137 | $173,376 |
Accumulated Amortization | -112,459 | -106,515 |
Net Book Value | 57,678 | 66,861 |
Developed technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 148,138 | 151,376 |
Accumulated Amortization | -99,784 | -94,560 |
Net Book Value | 48,354 | 56,816 |
Trademarks, branding and domain names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 16,292 | 16,292 |
Accumulated Amortization | -8,393 | -7,861 |
Net Book Value | 7,899 | 8,431 |
Acquired lease intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 5,707 | 5,708 |
Accumulated Amortization | -4,282 | -4,094 |
Net Book Value | $1,425 | $1,614 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2015 | $19,286 |
2016 | 23,703 |
2017 | 5,808 |
2018 and thereafter | 2,761 |
Total | $51,558 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | ||
Increase in income tax expense benefit | $8.70 | |
Changes in estimated jurisdictional mix of earnings | 0.8 | |
Federal research and development tax credit [Member] | ||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | ||
Incremental benefit | $7.80 |
Other_Current_Liabilities_Sche
Other Current Liabilities - Schedule of Other Current Liabilities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ||
Accrued escrow for acquisitions | $47,906 | $47,906 |
Contingent consideration liability | 44,420 | |
Accrued compensation liability | 15,151 | 26,113 |
Accrued restructuring liability | 6,457 | 7,214 |
Accrued accounts payable | 19,219 | 17,542 |
Other current liabilities | 19,843 | 20,955 |
Total other current liabilities | $108,576 | $164,150 |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | $1,957,000 | $2,857,000 |
Restructuring liability, expected paid out period | 2 years 7 months 6 days | |
General and administrative [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charge | 3,500,000 | |
2015 Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charge | 3,200,000 | |
Employee severance costs pay and related costs | 2,300,000 | |
Lease and contract termination costs | 900,000 | |
Stock-based expense reversals | 100,000 | |
Restructuring liability | 330,000 | |
2014 Restructuring Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring liability | $8,082,000 | $10,009,000 |
Restructuring liability, expected paid out period | 1 year 9 months 18 days |
Restructuring_Summary_of_Histo
Restructuring - Summary of Historical Restructuring Liability (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Restructuring Cost and Reserve [Line Items] | |
Restructuring liability, Beginning balance | $2,857 |
Restructuring expense and adjustments | 31 |
Cash payments | -931 |
Restructuring liability, Ending balance | 1,957 |
2015 Restructuring Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expense and adjustments | 3,241 |
Cash payments | -2,911 |
Restructuring liability, Ending balance | 330 |
2014 Restructuring Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring liability, Beginning balance | 10,009 |
Restructuring expense and adjustments | 189 |
Cash payments | -2,116 |
Restructuring liability, Ending balance | $8,082 |
Stockholders_Equity_StockBased
Stockholders' Equity - Stock-Based Expense Related to Grants of Employee and Consultant Stock Options, Warrants, Restricted Stock and Restricted Stock Units (ZSUs) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based expense | $41,462 | $28,326 |
Cost of revenue [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based expense | 1,072 | 1,279 |
Research and development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based expense | 28,317 | 18,416 |
Sales and marketing [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based expense | 1,519 | 1,458 |
General and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based expense | $10,554 | $7,173 |
Stockholders_Equity_Schedule_o
Stockholders' Equity - Schedule of Share Based Compensation Stock Option Activity (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Stock Options Outstanding, Beginning balance | 39,460 | |
Stock Options, Granted | 0 | |
Stock Options, Forfeited and cancelled | -1,598 | |
Stock Options, Exercised | -550 | |
Stock Options Outstanding, Ending balance | 37,312 | 39,460 |
Outstanding Options, Weighted Average Exercise Price, Beginning Balance | $2.22 | |
Weighted Average Exercise Price, Granted | $0 | |
Weighted Average Exercise Price, Forfeited and cancelled | $3.29 | |
Weighted Average Exercise Price, Exercised | $0.30 | |
Outstanding Options, Weighted Average Exercise Price, Ending Balance | $2.20 | $2.22 |
Outstanding Options, Aggregate Intrinsic Value of Stock Options Outstanding | $50,028 | $47,347 |
Weighted Average Contractual Term (in years) | 6 years 6 months | 6 years 8 months 27 days |
Stockholders_Equity_Schedule_o1
Stockholders' Equity - Schedule of Share Based Compensation Restricted Stock Units Award Activity (Detail) (Restricted Stock Units (ZSUs) [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Restricted Stock Units (ZSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested Outstanding Shares, Beginning balance | 69,883 |
Nonvested Shares, Granted | 4,709 |
Nonvested Shares, Vested | -6,274 |
Nonvested Shares, Forfeited and cancelled | -5,834 |
Nonvested Outstanding Shares, Ending balance | 62,484 |
Weighted Average Grant Date Fair Value, Beginning balance | $3.64 |
Weighted Average Grant Date Fair Value, Granted | $2.33 |
Weighted Average Grant Date Fair Value, Vested | $4.79 |
Weighted Average Grant Date Fair Value, Forfeited and cancelled | $3.07 |
Weighted Average Grant Date Fair Value, Ending balance | $3.48 |
Nonvested Aggregated Intrinsic Value, Beginning balance | $185,889 |
Nonvested Aggregated Intrinsic Value, Ending balance | $178,079 |
Stockholders_Equity_Schedule_o2
Stockholders' Equity - Schedule of Accumulated Other Comprehensive Income Loss (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income, net of tax, Beginning balance | ($29,175) | |
Other comprehensive income before reclassifications, net of tax | -22,160 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | -15 | |
Other comprehensive income (loss) | -22,175 | 5,126 |
Accumulated other comprehensive income, net of tax, Ending balance | -51,350 | |
Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income, net of tax, Beginning balance | -28,781 | |
Other comprehensive income before reclassifications, net of tax | -22,613 | |
Other comprehensive income (loss) | -22,613 | |
Accumulated other comprehensive income, net of tax, Ending balance | -51,394 | |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income, net of tax, Beginning balance | -394 | |
Other comprehensive income before reclassifications, net of tax | 453 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | -15 | |
Other comprehensive income (loss) | 438 | |
Accumulated other comprehensive income, net of tax, Ending balance | $44 |
Net_Income_Loss_Per_Share_of_C2
Net Income (Loss) Per Share of Common Stock - Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share of Common Stock (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
BASIC: | ||
Net income (loss) attributable to common stockholders | ($46,496) | ($61,183) |
Weighted-average common shares outstanding | 898,344 | 850,148 |
Basic net income (loss) per share | ($0.05) | ($0.07) |
DILUTED: | ||
Weighted-average common shares outstanding-basic | 898,344 | 850,148 |
Weighted-average common shares outstanding-diluted | 898,344 | 850,148 |
Diluted net income (loss) per share | ($0.05) | ($0.07) |
Common Class A [Member] | ||
BASIC: | ||
Net income (loss) attributable to common stockholders | -39,525 | -50,782 |
Weighted-average common shares outstanding | 763,658 | 705,627 |
Basic net income (loss) per share | ($0.05) | ($0.07) |
DILUTED: | ||
Net income (loss) attributable to common stockholders | -39,525 | -50,782 |
Net income (loss) attributable to common stockholders-diluted | -46,496 | -61,183 |
Weighted-average common shares outstanding-basic | 763,658 | 705,627 |
Weighted-average common shares outstanding-diluted | 898,344 | 850,148 |
Diluted net income (loss) per share | ($0.05) | ($0.07) |
Common Class A [Member] | Class C Convert To Class A [Member] | ||
DILUTED: | ||
Reallocation of net income (loss) as a result of common stock class conversion | -1,062 | -1,477 |
Conversion of common stock class | 20,517 | 20,517 |
Common Class A [Member] | Class B convert to Class A [Member] | ||
DILUTED: | ||
Reallocation of net income (loss) as a result of common stock class conversion | -5,909 | -8,924 |
Conversion of common stock class | 114,169 | 124,004 |
Common Class B [Member] | ||
BASIC: | ||
Net income (loss) attributable to common stockholders | -59,909 | -8,924 |
Weighted-average common shares outstanding | 114,169 | 124,004 |
Basic net income (loss) per share | ($0.05) | ($0.07) |
DILUTED: | ||
Net income (loss) attributable to common stockholders | -5,909 | -8,924 |
Net income (loss) attributable to common stockholders-diluted | -5,909 | -8,924 |
Weighted-average common shares outstanding-basic | 114,169 | 124,004 |
Weighted-average common shares outstanding-diluted | 114,169 | 124,004 |
Diluted net income (loss) per share | ($0.05) | ($0.07) |
Common Class C [Member] | ||
BASIC: | ||
Net income (loss) attributable to common stockholders | -1,062 | -1,477 |
Weighted-average common shares outstanding | 20,517 | 20,517 |
Basic net income (loss) per share | ($0.05) | ($0.07) |
DILUTED: | ||
Net income (loss) attributable to common stockholders | -1,062 | -1,477 |
Net income (loss) attributable to common stockholders-diluted | ($1,062) | ($1,477) |
Weighted-average common shares outstanding-basic | 20,517 | 20,517 |
Weighted-average common shares outstanding-diluted | 20,517 | 20,517 |
Diluted net income (loss) per share | ($0.05) | ($0.07) |
Net_Income_Loss_Per_Share_of_C3
Net Income (Loss) Per Share of Common Stock - Weighted Average Employee Equity Awards (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share amount | 118,054 | 109,925 |
Restricted shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share amount | 11,129 | 9,081 |
Restricted Stock Units (ZSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share amount | 68,127 | 58,817 |
Zynga Stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share amount | 38,798 | 42,027 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2015 | $19,043 |
2016 | 23,638 |
2017 | 14,292 |
2018 | 13,074 |
2019 | 13,234 |
2020 and thereafter | 21,918 |
Total operating leases, future minimum payments | $105,199 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 0 Months Ended | 32 Months Ended | 0 Months Ended | ||||||
Jun. 30, 2013 | Mar. 31, 2015 | Mar. 11, 2013 | Nov. 19, 2012 | Jun. 30, 2012 | Aug. 01, 2012 | Apr. 04, 2013 | Mar. 31, 2015 | Aug. 03, 2012 | Aug. 16, 2012 | Apr. 02, 2014 | |
Cases | Cases | Cases | Cases | Cases | Cases | Cases | Cases | Cases | |||
Loss Contingencies [Line Items] | |||||||||||
Line of credit facility, initiation date | 31-Jul-11 | ||||||||||
Debt instrument issuance date | 2018-06 | ||||||||||
Line of credit facility maximum borrowing capacity | $1,000,000,000 | ||||||||||
Line of credit facility commitment fee amount | 600,000 | ||||||||||
Amended Credit Facility [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Line of credit facility maximum borrowing capacity | 200,000,000 | ||||||||||
Line of credit facility additional up-front fees | 300,000 | ||||||||||
Line of credit facility frequency of commitment fee payment | Quarterly | ||||||||||
Line of credit facility commitment fee amount | $100,000 | ||||||||||
Line of credit facility, interest rate description | The interest rate for the amended credit facility is determined based on a formula using certain market rates, as described in the amended credit agreement. | ||||||||||
Delaware [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Claims filed | 1 | ||||||||||
Claims settled | 1 | ||||||||||
Case one [Member] | Northern California [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Claims filed | 1 | ||||||||||
Reyes v. Zynga Inc. [Member] | San Francisco [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Claims filed | 1 | ||||||||||
Lee v. Pincus [Member] | Delaware [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Claims filed | 1 | ||||||||||
Stockholder Derivative Lawsuits [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Claims filed | 9 | ||||||||||
Zynga Shareholder Derivative Litigation [Member] | San Francisco [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Claims filed | 3 | ||||||||||
Zynga Inc. Derivative Litigation [Member] | Northern California [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Claims filed | 4 | ||||||||||
Sandys v. Pincus [Member] | Delaware [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Claims filed | 1 |
Geographical_Information_Reven
Geographical Information - Revenue by Geographical Area (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $183,293 | $168,020 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 117,540 | 99,105 |
All other countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $65,753 | $68,915 |
Geographical_Information_Reven1
Geographical Information - Revenue by Geographical Area (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Segment Reporting [Abstract] | |
Percentage of total revenue | 10.00% |
Geographical_Information_Prope
Geographical Information - Property and Equipment, Net (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property plant and equipment, net | $288,027 | $297,919 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property plant and equipment, net | 285,074 | 294,708 |
All other countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property plant and equipment, net | $2,953 | $3,211 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2015 | Sep. 30, 2016 | 6-May-15 | Jun. 30, 2015 |
Scenario, Forecast [Member] | Workforce Reduction [Member] | ||||
Subsequent Event [Line Items] | ||||
Expected annualized savings | $45 | |||
Scenario, Forecast [Member] | Service Costs [Member] | ||||
Subsequent Event [Line Items] | ||||
Expected annualized savings | 55 | |||
Scenario, Forecast [Member] | Minimum [Member] | ||||
Subsequent Event [Line Items] | ||||
Estimated pre-tax restructuring charge | 18 | |||
Scenario, Forecast [Member] | Maximum [Member] | ||||
Subsequent Event [Line Items] | ||||
Estimated pre-tax restructuring charge | 22 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Expected annualized savings | $100 | |||
Expected workforce reduction percentage | 18.00% |