Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 15, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ZNGA | |
Entity Registrant Name | Zynga Inc. | |
Entity Central Index Key | 1,439,404 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 798,805,953 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 113,648,170 | |
Common Class C [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 20,517,472 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 663,020 | $ 131,303 |
Marketable securities | 406,701 | 785,221 |
Accounts receivable, net of allowance of $0 at September 30, 2015 and December 31, 2014 | 87,214 | 89,611 |
Income tax receivable | 5,016 | 3,304 |
Deferred tax assets | 520 | 2,765 |
Restricted cash | 210 | 48,047 |
Other current assets | 31,475 | 22,688 |
Total current assets | 1,194,156 | 1,082,939 |
Long-term marketable securities | 4,515 | 231,385 |
Goodwill | 667,195 | 650,778 |
Other intangible assets, net | 72,497 | 66,861 |
Property and equipment, net | 280,535 | 297,919 |
Restricted cash | 1,000 | |
Other long-term assets | 17,886 | 18,911 |
Total assets | 2,237,784 | 2,348,793 |
Current liabilities: | ||
Accounts payable | 27,507 | 14,965 |
Other current liabilities | 59,541 | 164,150 |
Deferred revenue | 132,510 | 189,923 |
Total current liabilities | 219,558 | 369,038 |
Deferred revenue | 198 | 3,882 |
Deferred tax liabilities | 6,592 | 5,323 |
Other non-current liabilities | 91,007 | 74,858 |
Total liabilities | 317,355 | 453,101 |
Stockholders' equity: | ||
Common stock, $0.00000625 par value, and additional paid in capital - authorized shares: 2,020,517 shares outstanding: 932,923 shares (Class A, 798,658, Class B, 113,748, Class C, 20,517) as of September 30, 2015 and 905,860 (Class A, 770,658, Class B, 114,685, Class C, 20,517) as of December 31, 2014 | 3,206,629 | 3,096,982 |
Accumulated other comprehensive income (loss) | (41,414) | (29,175) |
Accumulated deficit | (1,244,786) | (1,172,115) |
Total stockholders' equity | 1,920,429 | 1,895,692 |
Total liabilities and stockholders' equity | $ 2,237,784 | $ 2,348,793 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts receivable, allowance | $ 0 | $ 0 |
Common stock, par value | $ 0.00000625 | $ 0.00000625 |
Common stock, shares authorized | 2,020,517 | 2,020,517 |
Common stock, shares outstanding | 932,923 | 905,860 |
Common Class A [Member] | ||
Common stock, shares outstanding | 798,658 | 770,658 |
Common Class B [Member] | ||
Common stock, shares outstanding | 113,748 | 114,685 |
Common Class C [Member] | ||
Common stock, shares outstanding | 20,517 | 20,517 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue: | ||||
Online game | $ 151,168 | $ 139,372 | $ 461,292 | $ 402,608 |
Advertising and other | 44,569 | 37,239 | 117,656 | 95,255 |
Total revenue | 195,737 | 176,611 | 578,948 | 497,863 |
Costs and expenses: | ||||
Cost of revenue | 57,187 | 53,286 | 172,588 | 158,078 |
Research and development | 78,416 | 100,113 | 276,832 | 291,419 |
Sales and marketing | 43,549 | 44,005 | 116,507 | 115,466 |
General and administrative | 25,765 | 38,536 | 103,951 | 128,703 |
Total costs and expenses | 204,917 | 235,940 | 669,878 | 693,666 |
Income (loss) from operations | (9,180) | (59,329) | (90,930) | (195,803) |
Interest income (expense), net | 566 | 841 | 1,965 | 2,487 |
Other income (expense), net | 2,285 | 647 | 11,843 | 2,668 |
Income (loss) before income taxes | (6,329) | (57,841) | (77,122) | (190,648) |
Provision for (benefit from) income taxes | (9,381) | (783) | (6,810) | (9,874) |
Net income (loss) | $ 3,052 | $ (57,058) | $ (70,312) | $ (180,774) |
Net income (loss) per share: | ||||
Basic | $ 0 | $ (0.06) | $ (0.08) | $ (0.21) |
Diluted | $ 0 | $ (0.06) | $ (0.08) | $ (0.21) |
Weighted average common shares used to compute net income (loss) per share: | ||||
Basic | 921,116 | 884,021 | 910,469 | 869,178 |
Diluted | 940,032 | 884,021 | 910,469 | 869,178 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Partners' Capital [Abstract] | ||||
Net income (loss) | $ 3,052 | $ (57,058) | $ (70,312) | $ (180,774) |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustment | (16,858) | (21,368) | (12,746) | (3,055) |
Net change on unrealized gains (losses) on available-for-sale investments, net of tax | 129 | (272) | 507 | (409) |
Other comprehensive income (loss) | (16,729) | (21,640) | (12,239) | (3,464) |
Comprehensive income (loss) | $ (13,677) | $ (78,698) | $ (82,551) | $ (184,238) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities: | ||
Net income (loss) | $ (70,312) | $ (180,774) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 42,349 | 64,553 |
Stock-based expense | 99,803 | 93,468 |
(Gain) loss from sales of investments, assets and other, net | (6,283) | 2,131 |
Tax benefits from stock-based awards | 90 | |
Excess tax benefits from stock-based awards | (90) | |
Accretion and amortization on marketable securities | 4,941 | 7,783 |
Deferred income taxes | (9,151) | (10,113) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 2,544 | (13,443) |
Income tax receivable | (1,712) | 3,200 |
Other assets | (11,860) | (3,860) |
Accounts payable | 12,226 | (5,919) |
Deferred revenue | (61,097) | 13,838 |
Other liabilities | (49,360) | 20,280 |
Net cash provided by (used in) operating activities | (47,912) | (8,856) |
Investing activities: | ||
Purchases of marketable securities | (101,091) | (617,256) |
Sales and maturities of marketable securities | 702,017 | 667,706 |
Acquisition of property and equipment | (6,847) | (7,078) |
Business acquisition, net of cash acquired | (20,023) | (391,711) |
Proceeds from sale of property and equipment | 750 | 5,059 |
Proceeds from sale of equity method investment | 10,507 | |
Other investing activities, net | 357 | |
Net cash provided by (used in) investing activities | 585,313 | (342,923) |
Financing activities: | ||
Taxes paid related to net share settlement of equity awards | (1,866) | (963) |
Proceeds from employee stock purchase plan and exercise of stock options | 7,292 | 15,728 |
Excess tax benefits from stock-based awards | 90 | |
Acquisition related contingent consideration payment | (10,790) | |
Net cash provided by (used in) financing activities | (5,274) | 14,765 |
Effect of exchange rate changes on cash and cash equivalents | (410) | (231) |
Net increase (decrease) in cash and cash equivalents | 531,717 | (337,245) |
Cash and cash equivalents, beginning of period | 131,303 | 465,523 |
Cash and cash equivalents, end of period | $ 663,020 | $ 128,278 |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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 September 30, 2015, the interim consolidated statements of operations, the interim consolidated statements of comprehensive income (loss) for the three and nine months ended September 30, 2015 and 2014, the interim consolidated statements of cash flows for the nine months ended September 30, 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 and nine months ended September 30, 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 and nine months ended September 30, 2015 for various games resulted in an increase in revenue and income from continuing operations of $7.4 million and $8.2 million, respectively, 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 $9.9 million of revenue and income from continuing operations in the nine months ended September 30, 2015 due to changes in our estimated average life of durable goods for games that have been discontinued as there is no further service obligation after the closure of these games. These changes in estimates and discontinuance of games resulted in a $0.01 per share and $0.02 per share impact on our reported earnings per share for the three and nine months ended September 30, 2015, respectively. Accounting Policy Updates In September 2015, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) which requires an acquirer in a business combination to recognize measurement-period adjustments during the period in which adjustment amounts are determined rather than retrospectively, including the effect on earnings of any amounts that would have been recorded in previous periods if the accounting had been completed as of the acquisition date. This standard will be applied prospectively to adjustments to provisional amounts that occur after the effective date. This standard will be effective for the Company beginning in the first quarter of 2016; however, early adoption is permitted. We do not expect this standard to have a material impact on our financial statements. In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers Revenue Recognition (Topic 605) |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 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): September 30, 2015 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value U.S. government and government agency debt securities $ 196,828 $ 86 $ (1 ) $ 196,913 Corporate debt securities 214,276 50 (23 ) 214,303 Total $ 411,104 $ 136 $ (24 ) $ 411,216 December 31, 2014 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): September 30, 2015 Due within one year $ 406,701 After one year through three years 4,515 Total $ 411,216 Changes in market interest rates and bond yields caused certain investments to fall below their cost basis, resulting in unrealized losses on marketable securities. As of September 30, 2015, we had unrealized losses of $0.1 million related to marketable securities that had a fair value of $100.1 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 September 30, 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 | 9 Months Ended |
Sep. 30, 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 acquisitions of Spooky Cool Labs LLC (“Spooky Cool Labs”) and Rising Tide Games, Inc. (“Rising Tide Games”). The amount payable is contingent upon the achievement of certain performance milestones. We estimated the acquisition date fair value of the contingent consideration payable using 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. Significant changes in actual and forecasted future cash flows may result in significant charges or benefits to our future operating expenses. 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 paid $53.8 million in the first quarter of 2015 and $5.0 million in the second quarter of 2015 to fully settle the contingent consideration liability balance and bonuses related to Spooky Cool Labs. In the third quarter of 2015, we acquired Rising Tide Games. Under the terms of the agreement, the contingent consideration may be payable based on the achievement of certain future performance targets during the three year period following the acquisition date. The current contingent consideration expected to be earned and payable by us is $21.8 million; however, the maximum contingent consideration that could be earned and payable by us is $140.0 million. 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): September 30, 2015 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 475,383 $ — $ — $ 475,383 U.S. government and government agency debt securities — 196,913 — 196,913 Corporate debt securities — 332,276 — 332,276 Total $ 475,383 $ 529,189 $ — $ 1,004,572 Liabilities: Contingent consideration $ — $ — $ 21,778 $ 21,778 December 31, 2014 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 | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment consist of the following (in thousands): September 30, December 31, 2015 2014 Computer equipment $ 120,586 $ 141,946 Software 32,108 31,778 Land 89,130 89,130 Building 195,296 194,574 Furniture and fixtures 10,794 10,616 Leasehold improvements 10,626 9,694 458,540 477,738 Less accumulated depreciation (178,005 ) (179,819 ) Total property and equipment, net $ 280,535 $ 297,919 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | 5. Acquisitions On September 11, 2015, we acquired Rising Tide Games, a provider of social games that we plan to use to release new social casino titles, for purchase consideration of approximately $44.2 million, which consisted of cash paid of $22.4 million and contingent consideration with a fair value of $21.8 million as of September 30, 2015. The contingent consideration may be payable based on the achievement of certain future performance targets during the three year period following the acquisition date and could be up to $140.0 million. We will record changes in the fair value of contingent consideration liabilities within operating expenses in our consolidated statement of operations each future reporting period. For further details on our fair value methodology with respect to contingent consideration liabilities, see Note 3 – Fair Value. The following table summarizes the purchase date fair value of net tangible and intangible assets acquired from Rising Tide Games (in thousands, unaudited): Total Developed technology, useful life of 5 years $ 27,000 Net tangible assets acquired (liabilities assumed) 2,445 Goodwill 25,050 Deferred tax liabilities (10,300 ) Total $ 44,195 Goodwill, which is not deductible for tax purposes, represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired, and is primarily attributable to the assembled workforce of the acquired business and expected synergies at the time of the acquisition. The information above provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, however, the preliminary measurements of fair value are subject to change including in the area of income taxes payable and deferred taxes which may change subject to the completion of certain tax returns. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 6. Goodwill and Other Intangible Assets Changes in the carrying value of goodwill from December 31, 2014 to September 30, 2015 are as follows (in thousands): Goodwill – December 31, 2014 $ 650,778 Additions 25,050 Foreign currency translation adjustments (1) (11,292 ) Goodwill adjustments (2) 2,659 Goodwill – September 30, 2015 $ 667,195 (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 September 30, 2015 are as follows (in thousands): September 30, 2015 Gross Carrying Accumulated Net Book Value Developed technology $ 176,562 $ (112,474 ) $ 64,088 Trademarks, branding and domain names 16,292 (8,938 ) 7,354 Acquired lease intangibles 5,708 (4,653 ) 1,055 Total $ 198,562 $ (126,065 ) $ 72,497 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 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 September 30, 2015, future amortization expense related to the intangible assets is expected to be recognized as shown below (in thousands): Year ending December 31: 2015 $ 7,815 2016 29,567 2017 11,330 2018 and thereafter 17,665 Total $ 66,377 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The benefit from income taxes increased by $8.6 million and decreased by $3.1 million in the three and nine months ended September 30, 2015, respectively, as compared to the same periods of the prior year. The increase in the three months ended September 30, 2015 is primarily attributable to the tax impact of the Rising Tide Games purchase accounting of $10.3 million, offset by an increase in tax expense of $1.7 million related to changes in our jurisdictional mix of earnings. The decrease in the nine months ended September 30, 2015 is primarily attributable to the excess of the tax impact of the Rising Tide Games purchase accounting in the third quarter of 2015 over the release of the valuation allowance associated with the 2013 Federal research and development credit in the first quarter of 2014 of $2.5 million, offset by changes in our jurisdictional mix of earnings of $5.6 million. Purchase accounting for the Rising Tide Games acquisition required the establishment of a deferred tax liability related to the book-tax basis differences of identifiable intangible assets. The deferred tax liability created an additional source of U.S. future taxable income which resulted in a release of a portion of our U.S. valuation allowance recorded in our Statement of Operations. 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 | 9 Months Ended |
Sep. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | 8. Other Current Liabilities Other current liabilities consist of the following (in thousands): September 30, December 31, 2015 2014 Accrued accounts payable 24,417 17,542 Accrued compensation liability 11,050 26,113 Accrued restructuring liability 5,212 7,214 Other current liabilities 18,862 20,955 Accrued escrow for acquisitions — 47,906 Contingent consideration liability — 44,420 Total other current liabilities $ 59,541 $ 164,150 Other current liabilities include various expenses that we accrue for transaction taxes, customer deposits and revenue sharing arrangements. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 9. Restructuring During the nine months ended September 30, 2015 we recorded a total restructuring charge of $16.7 million which was classified within our consolidated statement of operations as follows: Cost of Revenue $0.7 million, Research and Development $9.7 million, Sales and Marketing $0.8 million, and General and Administrative $5.5 million. Q2 2015 Restructuring Plan During the three months ended June 30, 2015, our board of directors authorized, and we implemented a restructuring plan that included a reduction in work force 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 $12.6 million in the nine months ended September 30, 2015, which is included in operating expenses in our consolidated statement of operations. The $12.6 million restructuring charge is comprised of $10.6 million of employee severance costs and $2.0 million related to lease and contract termination costs. This restructuring charge does not include the impact of $0.4 million of net stock-based expense reversals associated with the net effect of forfeitures from employee terminations. The remaining liability related to our Q2 2015 restructuring plan as of September 30, 2015 was $0.5 million and is expected to be paid out over the next 0.3 years. The following table presents the activity for the three months ended June 30, 2015 and the three and nine months ended September 30, 2015 related to the Q2 2015 restructuring plan (in thousands): Three Months Ended Nine Months Ended June 30, 2015 September 30, 2015 September 30, 2015 Restructuring liability - beginning of period $ — $ 1,860 $ — Restructuring expense and adjustments 12,282 367 12,649 Cash payments (10,422 ) (1,736 ) (12,158 ) Restructuring liability (Q2 2015 Plan) - end of period $ 1,860 $ 491 $ 491 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 $3.8 million in the nine months ended September 30, 2015, which is included in operating expenses in our consolidated statement of operations. The $3.8 million restructuring charge in the nine months ended September 30, 2015 is comprised of $2.5 million of employee severance costs and $1.3 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 following table presents the activity for the three months ended March 31, 2015 and June 30, 2015 and the nine months ended September 30, 2015 related to the Q1 2015 restructuring plan (in thousands): Three Months Ended Nine Months Ended March 31, 2015 June 30, 2015 September 30, 2015 Restructuring liability - beginning of period $ — $ 330 $ — Restructuring expense and adjustments 3,241 542 3,783 Cash payments (2,911 ) (872 ) (3,783 ) Restructuring liability (Q1 2015 Plan) - end of period $ 330 $ — $ — There is no remaining liability for the Q1 2015 restructuring plan as of September 30, 2015. Q1 2014 Restructuring Plan The following table presents the activity for the three months ended March 31, 2015 and June 30, 2015 and the three and nine months ended September 30, 2015 related to the Q1 2014 restructuring plan (in thousands): Three Months Ended Nine Months Ended March 31, 2015 June 30, 2015 September 30, 2015 September 30, 2015 Restructuring liability - beginning of period $ 10,009 $ 8,082 $ 6,663 $ 10,009 Restructuring expense and adjustments 189 30 33 252 Cash payments (2,116 ) (1,449 ) (1,491 ) (5,056 ) Restructuring liability (Q1 2014 Plan) - end of period $ 8,082 $ 6,663 $ 5,205 $ 5,205 The remaining liability of $5.2 million is expected to be paid out over the next 1.3 years. Other Plans The following table presents the activity for the three months ended March 31, 2015 and June 30, 2015 and the three and nine months ended September 30, 2015 related to all other remaining historical restructuring plans from prior years (in thousands): Three Months Ended Nine Months Ended March 31, 2015 June 30, 2015 September 30, 2015 September 30, 2015 Restructuring liability - beginning of period $ 2,857 $ 1,957 $ 1,933 $ 2,857 Restructuring expense and adjustments 31 — 19 50 Cash payments (931 ) (24 ) (1,168 ) (2,123 ) Restructuring liability (2013 Plan) - end of period $ 1,957 $ 1,933 $ 784 $ 784 The remaining liability of $0.8 million is expected to be paid out over the next 2.1 years. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity We recorded stock-based expense related to grants of employee and consultant stock options, restricted stock and restricted stock units (“ZSUs”) in our consolidated statements of operations as follows (in thousands): Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 2015 2014 2015 2014 Cost of revenue $ 991 $ 1,110 $ 2,835 $ 3,391 Research and development 22,308 24,281 70,485 60,293 Sales and marketing 2,045 1,187 5,181 4,505 General and administrative 5,092 9,717 21,302 25,279 Total stock-based expense $ 30,436 $ 36,295 $ 99,803 $ 93,468 The following table shows stock option activity for the nine months ended September 30, 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 300 2.99 Forfeited and cancelled (11,355 ) 3.37 Exercised (3,071 ) 0.46 Balance as of September 30, 2015 25,334 $ 1.93 $ 31,980 5.71 The following table shows a summary of ZSU activity for the nine months ended September 30, 2015 (in thousands, except weighted-average grant date fair value): Outstanding ZSUs Weighted- Aggregate Average Grant Date Intrinsic Value of Shares Fair Value Unvested ZSUs Unvested as of December 31, 2014 69,883 $ 3.64 $ 185,889 Granted 33,747 2.80 Vested (21,015 ) 4.04 Forfeited and cancelled (21,717 ) 3.22 Unvested as of September 30, 2015 60,898 $ 3.18 $ 138,847 The following table shows a summary of changes in accumulated other comprehensive income by component for the three and nine months ended September 30, 2015 (in thousands): Foreign Currency Unrealized Gains Total Balance as of June 30, 2015 $ (24,669 ) $ (16 ) $ (24,685 ) Other comprehensive income (loss) before reclassifications (16,858 ) 130 (16,728 ) Amounts reclassified from accumulated other comprehensive income — (1 ) (1 ) Net current-period other comprehensive income (loss) (16,858 ) 129 (16,729 ) Balance as of September 30, 2015 $ (41,527 ) 113 (41,414 ) Foreign Currency Unrealized Gains Total Balance as of December 31, 2014 $ (28,781 ) $ (394 ) $ (29,175 ) Other comprehensive income (loss) before reclassifications (12,746 ) 540 (12,206 ) Amounts reclassified from accumulated other comprehensive income — (33 ) (33 ) Net current-period other comprehensive income (loss) (12,746 ) 507 (12,239 ) Balance as of September 30, 2015 $ (41,527 ) 113 (41,414 ) |
Net Income (Loss) Per Share of
Net Income (Loss) Per Share of Common Stock | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share of Common Stock | 11. 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 September 30, 2015 2014 Class Class Class Class Class Class A B C A B C (unaudited) BASIC: Net income (loss) attributable to common stockholders $ 2,607 377 68 $ (48,121 ) $ (7,613 ) $ (1,324 ) Weighted-average common shares outstanding 786,768 113,831 20,517 745,558 117,946 20,517 Basic net income (loss) per share $ 0.00 $ 0.00 $ 0.00 $ (0.06 ) $ (0.06 ) $ (0.06 ) DILUTED: Net income (loss) attributable to common stockholders $ 2,607 377 68 $ (48,121 ) $ (7,613 ) $ (1,324 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares 68 — — (1,324 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares 377 — — (7,613 ) — — Reallocation of net income (loss) to Class B and Class C shares — 27 (1 ) — — — Net income (loss) attributable to common stockholders-diluted $ 3,052 $ 404 $ 67 $ (57,058 ) $ (7,613 ) $ (1,324 ) Weighted-average common shares outstanding-basic 786,768 113,831 20,517 745,558 117,946 20,517 Conversion of Class C to Class A common shares 20,517 — — 20,517 — — Conversion of Class B to Class A common shares 113,831 — — 117,946 — — Weighted-average effect of dilutive securities: Stock options and employee stock purchase plan 11,994 10,446 — — — — ZSUs 6,922 63 — — — — Weighted-average common shares outstanding-diluted 940,032 124,340 20,517 884,021 117,946 20,517 Diluted net income (loss) per share $ 0.00 $ 0.00 $ 0.00 $ (0.06 ) $ (0.06 ) $ (0.06 ) Nine Months Ended September 30, 2015 2014 Class Class Class Class Class Class A B C A B C (unaudited) BASIC: Net income (loss) attributable to common stockholders $ (59,922 ) $ (8,806 ) $ (1,584 ) $ (151,292 ) $ (25,215 ) $ (4,267 ) Weighted-average common shares outstanding 775,926 114,026 20,517 727,425 121,236 20,517 Basic net income per share $ (0.08 ) $ (0.08 ) $ (0.08 ) $ (0.21 ) $ (0.21 ) $ (0.21 ) DILUTED: Net income (loss) attributable to common stockholders $ (59,922 ) $ (8,806 ) $ (1,584 ) $ (151,292 ) $ (25,215 ) $ (4,267 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares (1,584 ) — — (4,267 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares (8,806 ) — — (25,215 ) — — Net income (loss) attributable to common stockholders-diluted $ (70,312 ) $ (8,806 ) $ (1,584 ) $ (180,774 ) $ (25,215 ) $ (4,267 ) Weighted-average common shares outstanding-basic 775,926 114,026 20,517 727,425 121,236 20,517 Conversion of Class C to Class A common shares outstanding 20,517 — — 20,517 — — Conversion of Class B to Class A common shares outstanding 114,026 — — 121,236 — — Number of shares used in diluted net income (loss) per share 910,469 114,026 20,517 869,178 121,236 20,517 Diluted net income (loss) per share $ (0.08 ) $ (0.08 ) $ (0.08 ) $ (0.21 ) $ (0.21 ) $ (0.21 ) 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Stock options and employee stock purchase plan 9,308 42,726 30,974 43,206 Restricted shares 7,791 13,763 9,102 12,333 ZSUs 40,445 51,550 64,056 56,484 Total 57,544 108,039 104,132 112,023 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Lease Commitments We have entered into operating leases for facilities, including data center space. As of September 30, 2015, future minimum lease payments related to these leases are as follows (in thousands): Year ending December 31: 2015 $ 4,871 2016 23,594 2017 14,233 2018 13,104 2019 13,260 2020 and thereafter 21,918 $ 90,980 Other Purchase Commitments We have entered into several contracts for hosting of data systems and licensed intellectual property. Future minimum purchase commitments that have initial or remaining non-cancelable terms as of September 30, 2015, are as follows (in thousands): Year ending December 31: 2015 $ 4,417 2016 20,464 2017 13,110 2018 1,382 2019 330 2020 and thereafter 300 $ 40,003 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 September 30, 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 28, 2015, the Court denied the defendants’ motion for leave to seek reconsideration of that order. On June 12, 2015, the Court entered a scheduling order setting certain pretrial deadlines leading up to a hearing on any dispositive motions scheduled for May 12, 2017. On June 24, 2015, pursuant to a stipulation among the parties, the consolidated class actions were reassigned to Magistrate Judge Jacqueline Scott Corley for all further proceedings. Pursuant to court order, a mediation session was conducted before the Honorable Edward Infante (Ret.) on August 4, 2015. The parties reached an agreement in principle to settle In re Zynga Inc. Securities Litigation as to all defendants for $23.0 million. The parties negotiated and executed a final stipulation of settlement and on October 2, 2015, lead plaintiff’s counsel filed an unopposed motion for preliminary approval of the settlement. In response to issues raised by the Court at an October 8, 2015 and in an October 9, 2015 order, on October 15, 2015, lead plaintiff’s counsel revised the papers in support of preliminary approval and filed a supplemental submission in support of lead plaintiff’s unopposed motion for preliminary approval of the settlement. On October 27, 2015, the Court granted preliminary approval of the class action settlement. The settlement, which is subject to notice to the class and further court approval at a final fairness hearing scheduled on January 28, 2016, would be funded entirely by insurance and lead to the dismissal of all claims against the defendants. Accordingly there would be no impact to Zynga’s financial statements if the final settlement is consistent with the current agreement. Given its preliminary nature, it remains possible that the settlement may not result in a final settlement, and that the assessment of the possibility of loss or adverse effect on our financial condition, if any, could therefore change in the near term. 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. Subsequent to various proceedings, 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. The Court endorsed a stipulation setting a briefing schedule for plaintiff’s motion for class certification. Plaintiff’s motion was filed on July 13, 2015. Briefing on the motion for class certification is complete and a hearing has been scheduled for November 20, 2015. On June 24, 2015, certain of the defendants filed a motion for relief from the court’s November 14, 2014 decision denying the defendants’ motion to dismiss the complaint. Briefing on the motion for relief from the court’s November 14, 2014 decision is complete. A hearing date has not been set. On August 19, 2015 the parties agreed to voluntarily dismiss three individual director defendants from the case. 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 Lee v. Pincus class action and will vigorously defend this action. 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. April 24, 2015, the court endorsed a stipulation among the parties staying the action until the Delaware Chancery Court rules on the defendants’ motion to stay or dismiss (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. On April 27, 2015, the court endorsed a stipulation among the parties staying the action until the Delaware Chancery Court rules on the defendants’ motion to stay or dismiss (discussed below). On April 4, 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-CB. On December 9, 2014, the defendants filed a motion to stay or dismiss the action. Briefing on the motion to stay or dismiss is complete. A hearing on the motion has been scheduled for November 17, 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 derivative actions 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, at various times, 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 | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Geographical Information | 13. Geographical Information The following represents our revenue based on the geographic location of our players (in thousands): Revenue Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 United States $ 131,542 $ 110,308 $ 379,103 $ 301,168 All other countries (1) 64,195 66,303 199,845 196,695 Total revenue $ 195,737 $ 176,611 $ 578,948 $ 497,863 (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 September 30, December 31, 2015 2014 United States $ 276,893 $ 294,708 All other countries 3,642 3,211 Total property and equipment, net $ 280,535 $ 297,919 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events Share Repurchase Program In October 2015, our Board of Directors authorized a share repurchase program of up to $200 million of our outstanding Class A common stock that remains in effect until October 2017. The timing and amount of any stock repurchases will be determined based on market conditions, share price and other factors. The program does not require us to repurchase any specific number of shares of our Class A common stock, and may be modified, suspended or terminated at any time without notice. The stock repurchase program will be funded from existing cash on hand. In connection with the share repurchase program, the Company may adopt one or more plans pursuant to the provisions of Rule 10b5-1 under the Securities Exchange Act of 1934. Share repurchases under these authorizations may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, or by any combination of such methods. Repurchases of our Class A common stock in the open market could result in increased volatility in our stock price. There is no guarantee that we will do any share repurchases under the program or otherwise in the future. Changes in Executive Team On November 3, 2015, Chief Financial Officer David Lee announced his resignation as CFO effective immediately and his departure from the company on December 11, 2015. Zynga has initiated a search for a replacement CFO and until a new CFO is appointed, Michelle Quejado, Zynga’s Chief Accounting Officer, will serve as interim CFO effective immediately. |
Overview and Summary of Signi21
Overview and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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 September 30, 2015, the interim consolidated statements of operations, the interim consolidated statements of comprehensive income (loss) for the three and nine months ended September 30, 2015 and 2014, the interim consolidated statements of cash flows for the nine months ended September 30, 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 and nine months ended September 30, 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 and nine months ended September 30, 2015 for various games resulted in an increase in revenue and income from continuing operations of $7.4 million and $8.2 million, respectively, 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 $9.9 million of revenue and income from continuing operations in the nine months ended September 30, 2015 due to changes in our estimated average life of durable goods for games that have been discontinued as there is no further service obligation after the closure of these games. These changes in estimates and discontinuance of games resulted in a $0.01 per share and $0.02 per share impact on our reported earnings per share for the three and nine months ended September 30, 2015, respectively. |
Accounting Policy Updates | Accounting Policy Updates In September 2015, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) which requires an acquirer in a business combination to recognize measurement-period adjustments during the period in which adjustment amounts are determined rather than retrospectively, including the effect on earnings of any amounts that would have been recorded in previous periods if the accounting had been completed as of the acquisition date. This standard will be applied prospectively to adjustments to provisional amounts that occur after the effective date. This standard will be effective for the Company beginning in the first quarter of 2016; however, early adoption is permitted. We do not expect this standard to have a material impact on our financial statements. In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers Revenue Recognition (Topic 605) |
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 acquisitions of Spooky Cool Labs LLC (“Spooky Cool Labs”) and Rising Tide Games, Inc. (“Rising Tide Games”). The amount payable is contingent upon the achievement of certain performance milestones. We estimated the acquisition date fair value of the contingent consideration payable using 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. Significant changes in actual and forecasted future cash flows may result in significant charges or benefits to our future operating expenses. 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 paid $53.8 million in the first quarter of 2015 and $5.0 million in the second quarter of 2015 to fully settle the contingent consideration liability balance and bonuses related to Spooky Cool Labs. |
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) | 9 Months Ended |
Sep. 30, 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): September 30, 2015 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value U.S. government and government agency debt securities $ 196,828 $ 86 $ (1 ) $ 196,913 Corporate debt securities 214,276 50 (23 ) 214,303 Total $ 411,104 $ 136 $ (24 ) $ 411,216 December 31, 2014 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): September 30, 2015 Due within one year $ 406,701 After one year through three years 4,515 Total $ 411,216 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 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): September 30, 2015 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 475,383 $ — $ — $ 475,383 U.S. government and government agency debt securities — 196,913 — 196,913 Corporate debt securities — 332,276 — 332,276 Total $ 475,383 $ 529,189 $ — $ 1,004,572 Liabilities: Contingent consideration $ — $ — $ 21,778 $ 21,778 December 31, 2014 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) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consist of the following (in thousands): September 30, December 31, 2015 2014 Computer equipment $ 120,586 $ 141,946 Software 32,108 31,778 Land 89,130 89,130 Building 195,296 194,574 Furniture and fixtures 10,794 10,616 Leasehold improvements 10,626 9,694 458,540 477,738 Less accumulated depreciation (178,005 ) (179,819 ) Total property and equipment, net $ 280,535 $ 297,919 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Rising Tide Games [Member] | |
Schedule of Purchase Price Allocation | The following table summarizes the purchase date fair value of net tangible and intangible assets acquired from Rising Tide Games (in thousands, unaudited): Total Developed technology, useful life of 5 years $ 27,000 Net tangible assets acquired (liabilities assumed) 2,445 Goodwill 25,050 Deferred tax liabilities (10,300 ) Total $ 44,195 |
Goodwill and Other Intangible26
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying value of goodwill from December 31, 2014 to September 30, 2015 are as follows (in thousands): Goodwill – December 31, 2014 $ 650,778 Additions 25,050 Foreign currency translation adjustments (1) (11,292 ) Goodwill adjustments (2) 2,659 Goodwill – September 30, 2015 $ 667,195 (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 September 30, 2015 are as follows (in thousands): September 30, 2015 Gross Carrying Accumulated Net Book Value Developed technology $ 176,562 $ (112,474 ) $ 64,088 Trademarks, branding and domain names 16,292 (8,938 ) 7,354 Acquired lease intangibles 5,708 (4,653 ) 1,055 Total $ 198,562 $ (126,065 ) $ 72,497 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 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 September 30, 2015, future amortization expense related to the intangible assets is expected to be recognized as shown below (in thousands): Year ending December 31: 2015 $ 7,815 2016 29,567 2017 11,330 2018 and thereafter 17,665 Total $ 66,377 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): September 30, December 31, 2015 2014 Accrued accounts payable 24,417 17,542 Accrued compensation liability 11,050 26,113 Accrued restructuring liability 5,212 7,214 Other current liabilities 18,862 20,955 Accrued escrow for acquisitions — 47,906 Contingent consideration liability — 44,420 Total other current liabilities $ 59,541 $ 164,150 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Summary of Historical Restructuring Liability | The following table presents the activity for the three months ended June 30, 2015 and the three and nine months ended September 30, 2015 related to the Q2 2015 restructuring plan (in thousands): Three Months Ended Nine Months Ended June 30, 2015 September 30, 2015 September 30, 2015 Restructuring liability - beginning of period $ — $ 1,860 $ — Restructuring expense and adjustments 12,282 367 12,649 Cash payments (10,422 ) (1,736 ) (12,158 ) Restructuring liability (Q2 2015 Plan) - end of period $ 1,860 $ 491 $ 491 The following table presents the activity for the three months ended March 31, 2015 and June 30, 2015 and the nine months ended September 30, 2015 related to the Q1 2015 restructuring plan (in thousands): Three Months Ended Nine Months Ended March 31, 2015 June 30, 2015 September 30, 2015 Restructuring liability - beginning of period $ — $ 330 $ — Restructuring expense and adjustments 3,241 542 3,783 Cash payments (2,911 ) (872 ) (3,783 ) Restructuring liability (Q1 2015 Plan) - end of period $ 330 $ — $ — Q1 2014 Restructuring Plan The following table presents the activity for the three months ended March 31, 2015 and June 30, 2015 and the three and nine months ended September 30, 2015 related to the Q1 2014 restructuring plan (in thousands): Three Months Ended Nine Months Ended March 31, 2015 June 30, 2015 September 30, 2015 September 30, 2015 Restructuring liability - beginning of period $ 10,009 $ 8,082 $ 6,663 $ 10,009 Restructuring expense and adjustments 189 30 33 252 Cash payments (2,116 ) (1,449 ) (1,491 ) (5,056 ) Restructuring liability (Q1 2014 Plan) - end of period $ 8,082 $ 6,663 $ 5,205 $ 5,205 Other Plans The following table presents the activity for the three months ended March 31, 2015 and June 30, 2015 and the three and nine months ended September 30, 2015 related to all other remaining historical restructuring plans from prior years (in thousands): Three Months Ended Nine Months Ended March 31, 2015 June 30, 2015 September 30, 2015 September 30, 2015 Restructuring liability - beginning of period $ 2,857 $ 1,957 $ 1,933 $ 2,857 Restructuring expense and adjustments 31 — 19 50 Cash payments (931 ) (24 ) (1,168 ) (2,123 ) Restructuring liability (2013 Plan) - end of period $ 1,957 $ 1,933 $ 784 $ 784 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Stock-Based Expense Related to Grants of Employee and Consultant Stock Options, Restricted Stock and Restricted Stock Units (ZSUs) | We recorded stock-based expense related to grants of employee and consultant stock options, restricted stock and restricted stock units (“ZSUs”) in our consolidated statements of operations as follows (in thousands): Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 2015 2014 2015 2014 Cost of revenue $ 991 $ 1,110 $ 2,835 $ 3,391 Research and development 22,308 24,281 70,485 60,293 Sales and marketing 2,045 1,187 5,181 4,505 General and administrative 5,092 9,717 21,302 25,279 Total stock-based expense $ 30,436 $ 36,295 $ 99,803 $ 93,468 |
Schedule of Share Based Compensation Stock Option Activity | The following table shows stock option activity for the nine months ended September 30, 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 300 2.99 Forfeited and cancelled (11,355 ) 3.37 Exercised (3,071 ) 0.46 Balance as of September 30, 2015 25,334 $ 1.93 $ 31,980 5.71 |
Schedule of Share Based Compensation Restricted Stock Units Award Activity | The following table shows a summary of ZSU activity for the nine months ended September 30, 2015 (in thousands, except weighted-average grant date fair value): Outstanding ZSUs Weighted- Aggregate Average Grant Date Intrinsic Value of Shares Fair Value Unvested ZSUs Unvested as of December 31, 2014 69,883 $ 3.64 $ 185,889 Granted 33,747 2.80 Vested (21,015 ) 4.04 Forfeited and cancelled (21,717 ) 3.22 Unvested as of September 30, 2015 60,898 $ 3.18 $ 138,847 |
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 and nine months ended September 30, 2015 (in thousands): Foreign Currency Unrealized Gains Total Balance as of June 30, 2015 $ (24,669 ) $ (16 ) $ (24,685 ) Other comprehensive income (loss) before reclassifications (16,858 ) 130 (16,728 ) Amounts reclassified from accumulated other comprehensive income — (1 ) (1 ) Net current-period other comprehensive income (loss) (16,858 ) 129 (16,729 ) Balance as of September 30, 2015 $ (41,527 ) 113 (41,414 ) Foreign Currency Unrealized Gains Total Balance as of December 31, 2014 $ (28,781 ) $ (394 ) $ (29,175 ) Other comprehensive income (loss) before reclassifications (12,746 ) 540 (12,206 ) Amounts reclassified from accumulated other comprehensive income — (33 ) (33 ) Net current-period other comprehensive income (loss) (12,746 ) 507 (12,239 ) Balance as of September 30, 2015 $ (41,527 ) 113 (41,414 ) |
Net Income (Loss) Per Share o30
Net Income (Loss) Per Share of Common Stock (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 2014 Class Class Class Class Class Class A B C A B C (unaudited) BASIC: Net income (loss) attributable to common stockholders $ 2,607 377 68 $ (48,121 ) $ (7,613 ) $ (1,324 ) Weighted-average common shares outstanding 786,768 113,831 20,517 745,558 117,946 20,517 Basic net income (loss) per share $ 0.00 $ 0.00 $ 0.00 $ (0.06 ) $ (0.06 ) $ (0.06 ) DILUTED: Net income (loss) attributable to common stockholders $ 2,607 377 68 $ (48,121 ) $ (7,613 ) $ (1,324 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares 68 — — (1,324 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares 377 — — (7,613 ) — — Reallocation of net income (loss) to Class B and Class C shares — 27 (1 ) — — — Net income (loss) attributable to common stockholders-diluted $ 3,052 $ 404 $ 67 $ (57,058 ) $ (7,613 ) $ (1,324 ) Weighted-average common shares outstanding-basic 786,768 113,831 20,517 745,558 117,946 20,517 Conversion of Class C to Class A common shares 20,517 — — 20,517 — — Conversion of Class B to Class A common shares 113,831 — — 117,946 — — Weighted-average effect of dilutive securities: Stock options and employee stock purchase plan 11,994 10,446 — — — — ZSUs 6,922 63 — — — — Weighted-average common shares outstanding-diluted 940,032 124,340 20,517 884,021 117,946 20,517 Diluted net income (loss) per share $ 0.00 $ 0.00 $ 0.00 $ (0.06 ) $ (0.06 ) $ (0.06 ) Nine Months Ended September 30, 2015 2014 Class Class Class Class Class Class A B C A B C (unaudited) BASIC: Net income (loss) attributable to common stockholders $ (59,922 ) $ (8,806 ) $ (1,584 ) $ (151,292 ) $ (25,215 ) $ (4,267 ) Weighted-average common shares outstanding 775,926 114,026 20,517 727,425 121,236 20,517 Basic net income per share $ (0.08 ) $ (0.08 ) $ (0.08 ) $ (0.21 ) $ (0.21 ) $ (0.21 ) DILUTED: Net income (loss) attributable to common stockholders $ (59,922 ) $ (8,806 ) $ (1,584 ) $ (151,292 ) $ (25,215 ) $ (4,267 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares (1,584 ) — — (4,267 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares (8,806 ) — — (25,215 ) — — Net income (loss) attributable to common stockholders-diluted $ (70,312 ) $ (8,806 ) $ (1,584 ) $ (180,774 ) $ (25,215 ) $ (4,267 ) Weighted-average common shares outstanding-basic 775,926 114,026 20,517 727,425 121,236 20,517 Conversion of Class C to Class A common shares outstanding 20,517 — — 20,517 — — Conversion of Class B to Class A common shares outstanding 114,026 — — 121,236 — — Number of shares used in diluted net income (loss) per share 910,469 114,026 20,517 869,178 121,236 20,517 Diluted net income (loss) per share $ (0.08 ) $ (0.08 ) $ (0.08 ) $ (0.21 ) $ (0.21 ) $ (0.21 ) |
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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Stock options and employee stock purchase plan 9,308 42,726 30,974 43,206 Restricted shares 7,791 13,763 9,102 12,333 ZSUs 40,445 51,550 64,056 56,484 Total 57,544 108,039 104,132 112,023 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Operating Leases | As of September 30, 2015, future minimum lease payments related to these leases are as follows (in thousands): Year ending December 31: 2015 $ 4,871 2016 23,594 2017 14,233 2018 13,104 2019 13,260 2020 and thereafter 21,918 $ 90,980 |
Schedule of Future Minimum Purchase Commitments | We have entered into several contracts for hosting of data systems and licensed intellectual property. Future minimum purchase commitments that have initial or remaining non-cancelable terms as of September 30, 2015, are as follows (in thousands): Year ending December 31: 2015 $ 4,417 2016 20,464 2017 13,110 2018 1,382 2019 330 2020 and thereafter 300 $ 40,003 |
Geographical Information (Table
Geographical Information (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended September 30, September 30, 2015 2014 2015 2014 United States $ 131,542 $ 110,308 $ 379,103 $ 301,168 All other countries (1) 64,195 66,303 199,845 196,695 Total revenue $ 195,737 $ 176,611 $ 578,948 $ 497,863 (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 September 30, December 31, 2015 2014 United States $ 276,893 $ 294,708 All other countries 3,642 3,211 Total property and equipment, net $ 280,535 $ 297,919 |
Overview and Summary of Signi33
Overview and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Initial offering period | December 2,011 | |
Increase in revenue and income from continuing operations | $ 7.4 | $ 8.2 |
Revenue and income from continuing operations | $ 9.9 | |
Impact on reported earnings per share | $ 0.01 | $ 0.02 |
Marketable Securities - Summary
Marketable Securities - Summary of Available-for-Sale Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 411,104 | $ 1,016,999 |
Gross Unrealized Gains | 136 | 107 |
Gross Unrealized Losses | (24) | (500) |
Aggregate Fair Value | 411,216 | 1,016,606 |
U.S. government and government agency debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 196,828 | 405,049 |
Gross Unrealized Gains | 86 | 68 |
Gross Unrealized Losses | (1) | (135) |
Aggregate Fair Value | 196,913 | 404,982 |
Corporate debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 214,276 | 611,950 |
Gross Unrealized Gains | 50 | 39 |
Gross Unrealized Losses | (23) | (365) |
Aggregate Fair Value | $ 214,303 | $ 611,624 |
Marketable Securities - Fair Va
Marketable Securities - Fair Value of Available-for-Sale Marketable Securities by Contractual Maturities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Marketable Securities [Abstract] | ||
Due within one year | $ 406,701 | $ 785,221 |
After one year through three years | 4,515 | 231,385 |
Aggregate Fair Value | $ 411,216 | $ 1,016,606 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Marketable Securities [Abstract] | ||
Unrealized losses | $ 100,000 | $ 500,000 |
Fair value | 100,100,000 | 621,500,000 |
Available-for-sale securities, continuous unrealized loss position, more than twelve months, fair value | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | |
Spooky Cool Labs [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Maximum amount payable | $ 58.8 | $ 58.8 | ||
Contingent consideration payable | 53.8 | 53.8 | ||
Business combination related to bonuses | 5 | 5 | ||
Contingent consideration liability balance and bonuses settled | $ 5 | $ 53.8 | ||
Rising Tide Games [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Maximum amount payable | 140 | 140 | ||
Contingent consideration payable | $ 21.8 | $ 21.8 | ||
Potential future payments maximum period | 3 years | 3 years |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | $ 1,004,572 | $ 1,058,201 |
Contingent consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 21,778 | 44,420 |
Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 475,383 | 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 | 196,913 | 404,982 |
Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 332,276 | 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 | 475,383 | 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 | 475,383 | 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 | 529,189 | 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 | 196,913 | 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 | 332,276 | 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 | $ 21,778 | $ 44,420 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 458,540 | $ 477,738 |
Less accumulated depreciation | (178,005) | (179,819) |
Total property and equipment, net | 280,535 | 297,919 |
Computer equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 120,586 | 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 | 195,296 | 194,574 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,794 | 10,616 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,626 | 9,694 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 32,108 | $ 31,778 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - Rising Tide Games [Member] - USD ($) $ in Millions | Sep. 11, 2015 | Sep. 30, 2015 | Sep. 30, 2015 |
Business Acquisition [Line Items] | |||
Business acquisition, cost of acquired entity | $ 44.2 | ||
Business acquisition, cost of acquired entity, cash paid | 22.4 | ||
Business acquisition, cost of acquired entity, fair value of contingent consideration | $ 21.8 | ||
Business acquisition effective date of acquisition | Sep. 11, 2015 | ||
Potential future payments maximum period | 3 years | 3 years | |
Potential future payments | $ 140 | $ 140 |
Acquisitions - Schedule of Purc
Acquisitions - Schedule of Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 11, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 667,195 | $ 650,778 | |
Rising Tide Games [Member] | |||
Business Acquisition [Line Items] | |||
Net tangible assets acquired (liabilities assumed) | $ 2,445 | ||
Goodwill | 25,050 | ||
Deferred tax liabilities | (10,300) | ||
Total | 44,195 | ||
Rising Tide Games [Member] | Developed technology [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value, Intangible assets | $ 27,000 |
Acquisitions - Schedule of Pu42
Acquisitions - Schedule of Purchase Price Allocation (Parenthetical) (Detail) | Sep. 11, 2015 |
Developed technology [Member] | Rising Tide Games [Member] | |
Business Acquisition [Line Items] | |
Intangible assets, useful life | 5 years |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets - Schedule of Goodwill (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 650,778 |
Additions | 25,050 |
Foreign currency translation adjustments | (11,292) |
Goodwill adjustments | 2,659 |
Goodwill, ending balance | $ 667,195 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets - Acquisition-Related Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 198,562 | $ 173,376 |
Accumulated Amortization | (126,065) | (106,515) |
Net Book Value | 72,497 | 66,861 |
Developed technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 176,562 | 151,376 |
Accumulated Amortization | (112,474) | (94,560) |
Net Book Value | 64,088 | 56,816 |
Trademarks, branding and domain names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 16,292 | 16,292 |
Accumulated Amortization | (8,938) | (7,861) |
Net Book Value | 7,354 | 8,431 |
Acquired lease intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 5,708 | 5,708 |
Accumulated Amortization | (4,653) | (4,094) |
Net Book Value | $ 1,055 | $ 1,614 |
Goodwill and Other Intangible45
Goodwill and Other Intangible Assets - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2,015 | $ 7,815 |
2,016 | 29,567 |
2,017 | 11,330 |
2018 and thereafter | 17,665 |
Total | $ 66,377 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Mar. 31, 2014 | Sep. 30, 2015 | |
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||
Increase (decrease) in income tax expense benefit | $ 8.6 | $ (3.1) | |
Changes in estimated jurisdictional mix of earnings | 1.7 | $ 5.6 | |
Incremental benefit | $ 10.3 | ||
Federal research and development tax credit [Member] | |||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||
Incremental benefit | $ 2.5 |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Accrued accounts payable | $ 24,417 | $ 17,542 |
Accrued compensation liability | 11,050 | 26,113 |
Accrued restructuring liability | 5,212 | 7,214 |
Other current liabilities | 18,862 | 20,955 |
Accrued escrow for acquisitions | 47,906 | |
Contingent consideration liability | 44,420 | |
Total other current liabilities | $ 59,541 | $ 164,150 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) | 9 Months Ended | |||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charge | $ 16,700,000 | |||
Cost of revenue [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charge | 700,000 | |||
Research and development [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charge | 9,700,000 | |||
Sales and marketing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charge | 800,000 | |||
General and administrative [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charge | 5,500,000 | |||
Q2 2015 Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charge | 12,600,000 | |||
Employee severance costs pay and related costs | 10,600,000 | |||
Lease and contract termination costs | 2,000,000 | |||
Stock-based expense reversals | 400,000 | |||
Restructuring liability | $ 491,000 | $ 1,860,000 | ||
Restructuring liability, expected paid out period | 3 months 18 days | |||
Q1 2015 Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charge | $ 3,800,000 | |||
Employee severance costs pay and related costs | 2,500,000 | |||
Lease and contract termination costs | 1,300,000 | |||
Stock-based expense reversals | 100,000 | |||
Restructuring liability | 0 | $ 330,000 | ||
Q1 2014 Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liability | $ 5,205,000 | 6,663,000 | 8,082,000 | $ 10,009,000 |
Restructuring liability, expected paid out period | 1 year 3 months 18 days | |||
Other Restructuring Plans [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liability | $ 784,000 | $ 1,933,000 | $ 1,957,000 | $ 2,857,000 |
Restructuring liability, expected paid out period | 2 years 1 month 6 days |
Restructuring - Summary of Hist
Restructuring - Summary of Historical Restructuring Liability (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | |
Q1 2015 Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liability, Beginning balance | $ 330,000 | |||
Restructuring expense and adjustments | 542,000 | $ 3,241,000 | $ 3,783,000 | |
Cash payments | (872,000) | (2,911,000) | (3,783,000) | |
Restructuring liability, Ending balance | $ 0 | 330,000 | 0 | |
Q2 2015 Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liability, Beginning balance | 1,860,000 | |||
Restructuring expense and adjustments | 367,000 | 12,282,000 | 12,649,000 | |
Cash payments | (1,736,000) | (10,422,000) | (12,158,000) | |
Restructuring liability, Ending balance | 491,000 | 1,860,000 | 491,000 | |
Q1 2014 Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liability, Beginning balance | 6,663,000 | 8,082,000 | 10,009,000 | 10,009,000 |
Restructuring expense and adjustments | 33,000 | 30,000 | 189,000 | 252,000 |
Cash payments | (1,491,000) | (1,449,000) | (2,116,000) | (5,056,000) |
Restructuring liability, Ending balance | 5,205,000 | 6,663,000 | 8,082,000 | 5,205,000 |
Other Restructuring Plans [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring liability, Beginning balance | 1,933,000 | 1,957,000 | 2,857,000 | 2,857,000 |
Restructuring expense and adjustments | 19,000 | 31,000 | 50,000 | |
Cash payments | (1,168,000) | (24,000) | (931,000) | (2,123,000) |
Restructuring liability, Ending balance | $ 784,000 | $ 1,933,000 | $ 1,957,000 | $ 784,000 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Expense Related to Grants of Employee and Consultant Stock Options, Restricted Stock and Restricted Stock Units (ZSUs) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based expense | $ 30,436 | $ 36,295 | $ 99,803 | $ 93,468 |
Cost of revenue [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based expense | 991 | 1,110 | 2,835 | 3,391 |
Research and development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based expense | 22,308 | 24,281 | 70,485 | 60,293 |
Sales and marketing [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based expense | 2,045 | 1,187 | 5,181 | 4,505 |
General and administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based expense | $ 5,092 | $ 9,717 | $ 21,302 | $ 25,279 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share Based Compensation Stock Option Activity (Detail) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Options Outstanding, Beginning balance | 39,460 | |
Stock Options, Granted | 300 | |
Stock Options, Forfeited and cancelled | (11,355) | |
Stock Options, Exercised | (3,071) | |
Stock Options Outstanding, Ending balance | 25,334 | 39,460 |
Outstanding Options, Weighted Average Exercise Price, Beginning Balance | $ 2.22 | |
Weighted Average Exercise Price, Granted | 2.99 | |
Weighted Average Exercise Price, Forfeited and cancelled | 3.37 | |
Weighted Average Exercise Price, Exercised | 0.46 | |
Outstanding Options, Weighted Average Exercise Price, Ending Balance | $ 1.93 | $ 2.22 |
Outstanding Options, Aggregate Intrinsic Value of Stock Options Outstanding | $ 31,980 | $ 47,347 |
Weighted Average Contractual Term (in years) | 5 years 8 months 16 days | 6 years 8 months 27 days |
Stockholders' Equity - Schedu52
Stockholders' Equity - Schedule of Share Based Compensation Restricted Stock Units Award Activity (Detail) - Restricted Stock Units (ZSUs) [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested Outstanding Shares, Beginning balance | 69,883 |
Nonvested Shares, Granted | 33,747 |
Nonvested Shares, Vested | (21,015) |
Nonvested Shares, Forfeited and cancelled | (21,717) |
Nonvested Outstanding Shares, Ending balance | 60,898 |
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 3.64 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 2.80 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 4.04 |
Weighted Average Grant Date Fair Value, Forfeited and cancelled | $ / shares | 3.22 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 3.18 |
Nonvested Aggregated Intrinsic Value, Beginning balance | $ | $ 185,889 |
Nonvested Aggregated Intrinsic Value, Ending balance | $ | $ 138,847 |
Stockholders' Equity - Schedu53
Stockholders' Equity - Schedule of Accumulated Other Comprehensive Income Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income, net of tax, Beginning balance | $ (24,685) | $ (29,175) | ||
Other comprehensive income (loss) before reclassifications, net of tax | (16,728) | (12,206) | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | (1) | (33) | ||
Other comprehensive income (loss) | (16,729) | $ (21,640) | (12,239) | $ (3,464) |
Accumulated other comprehensive income, net of tax, Ending balance | (41,414) | (41,414) | ||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income, net of tax, Beginning balance | (24,669) | (28,781) | ||
Other comprehensive income (loss) before reclassifications, net of tax | (16,858) | (12,746) | ||
Other comprehensive income (loss) | (16,858) | (12,746) | ||
Accumulated other comprehensive income, net of tax, Ending balance | (41,527) | (41,527) | ||
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 | (16) | (394) | ||
Other comprehensive income (loss) before reclassifications, net of tax | 130 | 540 | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | (1) | (33) | ||
Other comprehensive income (loss) | 129 | 507 | ||
Accumulated other comprehensive income, net of tax, Ending balance | $ 113 | $ 113 |
Net Income (Loss) Per Share o54
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 ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
BASIC: | ||||
Net income (loss) attributable to common stockholders | $ 3,052 | $ (57,058) | $ (70,312) | $ (180,774) |
Weighted-average common shares outstanding | 921,116 | 884,021 | 910,469 | 869,178 |
Basic net income (loss) per share | $ 0 | $ (0.06) | $ (0.08) | $ (0.21) |
DILUTED: | ||||
Weighted-average common shares outstanding-basic | 921,116 | 884,021 | 910,469 | 869,178 |
Weighted-average effect of dilutive securities: | ||||
Weighted-average common shares outstanding-diluted | 940,032 | 884,021 | 910,469 | 869,178 |
Diluted net income (loss) per share | $ 0 | $ (0.06) | $ (0.08) | $ (0.21) |
Common Class A [Member] | ||||
BASIC: | ||||
Net income (loss) attributable to common stockholders | $ 2,607 | $ (48,121) | $ (59,922) | $ (151,292) |
Weighted-average common shares outstanding | 786,768 | 745,558 | 775,926 | 727,425 |
Basic net income (loss) per share | $ 0 | $ (0.06) | $ (0.08) | $ (0.21) |
DILUTED: | ||||
Net income (loss) attributable to common stockholders | $ 2,607 | $ (48,121) | $ (59,922) | $ (151,292) |
Net income (loss) attributable to common stockholders-diluted | $ 3,052 | $ (57,058) | $ (70,312) | $ (180,774) |
Weighted-average common shares outstanding-basic | 786,768 | 745,558 | 775,926 | 727,425 |
Weighted-average effect of dilutive securities: | ||||
Weighted-average common shares outstanding-diluted | 940,032 | 884,021 | 910,469 | 869,178 |
Diluted net income (loss) per share | $ 0 | $ (0.06) | $ (0.08) | $ (0.21) |
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 | $ 68 | $ (1,324) | $ (1,584) | $ (4,267) |
Conversion of common stock class | 20,517 | 20,517 | 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 | $ 377 | $ (7,613) | $ (8,806) | $ (25,215) |
Conversion of common stock class | 113,831 | 117,946 | 114,026 | 121,236 |
Common Class A [Member] | Stock options and employee stock [Member] | ||||
Weighted-average effect of dilutive securities: | ||||
Share-based payment arrangement | 11,994 | |||
Common Class A [Member] | Restricted Stock Units (ZSUs) [Member] | ||||
Weighted-average effect of dilutive securities: | ||||
Share-based payment arrangement | 6,922 | |||
Common Class B [Member] | ||||
BASIC: | ||||
Net income (loss) attributable to common stockholders | $ 377 | $ (7,613) | $ (8,806) | $ (25,215) |
Weighted-average common shares outstanding | 113,831 | 117,946 | 114,026 | 121,236 |
Basic net income (loss) per share | $ 0 | $ (0.06) | $ (0.08) | $ (0.21) |
DILUTED: | ||||
Net income (loss) attributable to common stockholders | $ 377 | $ (7,613) | $ (8,806) | $ (25,215) |
Reallocation of net income (loss) to Class B and Class C shares | 27 | |||
Net income (loss) attributable to common stockholders-diluted | $ 404 | $ (7,613) | $ (8,806) | $ (25,215) |
Weighted-average common shares outstanding-basic | 113,831 | 117,946 | 114,026 | 121,236 |
Weighted-average effect of dilutive securities: | ||||
Weighted-average common shares outstanding-diluted | 124,340 | 117,946 | 114,026 | 121,236 |
Diluted net income (loss) per share | $ 0 | $ (0.06) | $ (0.08) | $ (0.21) |
Common Class B [Member] | Stock options and employee stock [Member] | ||||
Weighted-average effect of dilutive securities: | ||||
Share-based payment arrangement | 10,446 | |||
Common Class B [Member] | Restricted Stock Units (ZSUs) [Member] | ||||
Weighted-average effect of dilutive securities: | ||||
Share-based payment arrangement | 63 | |||
Common Class C [Member] | ||||
BASIC: | ||||
Net income (loss) attributable to common stockholders | $ 68 | $ (1,324) | $ (1,584) | $ (4,267) |
Weighted-average common shares outstanding | 20,517 | 20,517 | 20,517 | 20,517 |
Basic net income (loss) per share | $ 0 | $ (0.06) | $ (0.08) | $ (0.21) |
DILUTED: | ||||
Net income (loss) attributable to common stockholders | $ 68 | $ (1,324) | $ (1,584) | $ (4,267) |
Reallocation of net income (loss) to Class B and Class C shares | (1) | |||
Net income (loss) attributable to common stockholders-diluted | $ 67 | $ (1,324) | $ (1,584) | $ (4,267) |
Weighted-average common shares outstanding-basic | 20,517 | 20,517 | 20,517 | 20,517 |
Weighted-average effect of dilutive securities: | ||||
Weighted-average common shares outstanding-diluted | 20,517 | 20,517 | 20,517 | 20,517 |
Diluted net income (loss) per share | $ 0 | $ (0.06) | $ (0.08) | $ (0.21) |
Net Income (Loss) Per Share o55
Net Income (Loss) Per Share of Common Stock - Weighted Average Employee Equity Awards (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share amount | 57,544 | 108,039 | 104,132 | 112,023 |
Stock options and employee stock purchase plan [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share amount | 9,308 | 42,726 | 30,974 | 43,206 |
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 | 7,791 | 13,763 | 9,102 | 12,333 |
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 | 40,445 | 51,550 | 64,056 | 56,484 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,015 | $ 4,871 |
2,016 | 23,594 |
2,017 | 14,233 |
2,018 | 13,104 |
2,019 | 13,260 |
2020 and thereafter | 21,918 |
Total operating leases, future minimum payments | $ 90,980 |
Commitments and Contingencies57
Commitments and Contingencies - Schedule of Future Minimum Purchase Commitments (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,015 | $ 4,417 |
2,016 | 20,464 |
2,017 | 13,110 |
2,018 | 1,382 |
2,019 | 330 |
2020 and thereafter | 300 |
Total future minimum other purchase commitments | $ 40,003 |
Commitments and Contingencies58
Commitments and Contingencies - Additional Information (Detail) | Aug. 04, 2015USD ($) | Apr. 02, 2014Cases | Apr. 04, 2013Cases | Mar. 11, 2013Cases | Nov. 19, 2012Cases | Aug. 16, 2012Cases | Aug. 03, 2012Cases | Aug. 01, 2012Cases | Jul. 30, 2012Cases | Jun. 30, 2013USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($)Cases |
Loss Contingencies [Line Items] | ||||||||||||
Line of credit facility, initiation date | Jul. 31, 2011 | |||||||||||
Line of credit facility maximum borrowing capacity | $ | $ 1,000,000,000 | |||||||||||
Line of credit facility commitment fee amount | $ | $ 600,000 | |||||||||||
Amount drawn down under credit facility | $ | $ 0 | $ 0 | ||||||||||
Litigation settlement | $ | $ 23,000,000 | |||||||||||
Delaware [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Claims filed | 1 | |||||||||||
Claims settled | 1 | |||||||||||
Case one [Member] | California [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Claims filed | 1 | |||||||||||
Lee v. Pincus [Member] | Delaware [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Claims filed | 1 | |||||||||||
Reyes v. Zynga Inc. [Member] | San Francisco [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 | |||||||||||
Amended Credit Facility [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Line of credit facility, extended maturity | 2018-06 | |||||||||||
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. |
Geographical Information - Reve
Geographical Information - Revenue by Geographical Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 195,737 | $ 176,611 | $ 578,948 | $ 497,863 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 131,542 | 110,308 | 379,103 | 301,168 |
All other countries [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 64,195 | $ 66,303 | $ 199,845 | $ 196,695 |
Geographical Information - Re60
Geographical Information - Revenue by Geographical Area (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Percentage of total revenue | 10.00% |
Geographical Information - Prop
Geographical Information - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property plant and equipment, net | $ 280,535 | $ 297,919 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property plant and equipment, net | 276,893 | 294,708 |
All other countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property plant and equipment, net | $ 3,642 | $ 3,211 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Oct. 31, 2015USD ($) |
Maximum [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Stock repurchase program, authorized amount | $ 200,000,000 |