Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ZNGA | ||
Entity Registrant Name | ZYNGA INC | ||
Entity Central Index Key | 1,439,404 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,230 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 728,915,069 | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 113,522,135 | ||
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 | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 742,217 | $ 131,303 |
Marketable securities | 245,033 | 785,221 |
Accounts receivable, net of allowance of $0 at December 31, 2015 and December 31, 2014 | 79,610 | 89,611 |
Income tax receivable | 5,233 | 3,304 |
Deferred tax assets | 2,765 | |
Restricted cash | 209 | 48,047 |
Other current assets | 39,988 | 22,688 |
Total current assets | 1,112,290 | 1,082,939 |
Long-term marketable securities | 231,385 | |
Goodwill | 657,671 | 650,778 |
Other intangible assets, net | 64,016 | 66,861 |
Property and equipment, net | 273,221 | 297,919 |
Restricted cash | 986 | |
Other long-term assets | 16,446 | 18,911 |
Total assets | 2,124,630 | 2,348,793 |
Current liabilities: | ||
Accounts payable | 29,676 | 14,965 |
Other current liabilities | 77,691 | 164,150 |
Deferred revenue | 128,839 | 189,923 |
Total current liabilities | 236,206 | 369,038 |
Deferred revenue | 204 | 3,882 |
Deferred tax liabilities | 6,026 | 5,323 |
Other non-current liabilities | 95,293 | 74,858 |
Total liabilities | 337,729 | 453,101 |
Stockholders' equity: | ||
Common stock, $.00000625 par value, and additional paid in capital - authorized shares: 2,020,517; shares outstanding: 903,617 shares (Class A, 769,533, Class B, 113,567, Class C, 20,517) as of December 31, 2015 and 905,860 (Class A, 770,658, Class B, 114,685, Class C, 20,517) as of December 31, 2014 | 3,234,551 | 3,096,982 |
Treasury stock | (98,942) | |
Accumulated other comprehensive income (loss) | (52,388) | (29,175) |
Accumulated deficit | (1,296,320) | (1,172,115) |
Total stockholders' equity | 1,786,901 | 1,895,692 |
Total liabilities and stockholders' equity | $ 2,124,630 | $ 2,348,793 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts receivable, allowance | $ 0 | $ 0 |
Common stock, par value | $ 0.00000625 | $ 0.00000625 |
Common stock, shares authorized | 2,020,517,000 | 2,020,517,000 |
Common stock, shares outstanding | 903,617,000 | 905,860,000 |
Common Class A [Member] | ||
Common stock, shares outstanding | 769,533,000 | 770,658,000 |
Common Class B [Member] | ||
Common stock, shares outstanding | 113,567,000 | 114,685,000 |
Common Class C [Member] | ||
Common stock, shares outstanding | 20,517,000 | 20,517,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue: | |||
Online game | $ 590,755 | $ 537,619 | $ 759,572 |
Advertising and other | 173,962 | 152,791 | 113,694 |
Total revenue | 764,717 | 690,410 | 873,266 |
Costs and expenses: | |||
Cost of revenue | 235,985 | 213,570 | 248,358 |
Research and development | 361,931 | 396,553 | 413,001 |
Sales and marketing | 169,573 | 157,364 | 104,403 |
General and administrative | 143,284 | 167,664 | 162,918 |
Impairment of intangible assets | 10,217 | ||
Total costs and expenses | 910,773 | 935,151 | 938,897 |
Income (loss) from operations | (146,056) | (244,741) | (65,631) |
Interest income | 2,568 | 3,266 | 4,148 |
Other income (expense), net | 13,306 | 8,248 | (3,386) |
Income (loss) before income taxes | (130,182) | (233,227) | (64,869) |
Provision for (benefit from) income taxes | (8,672) | (7,327) | (27,887) |
Net income (loss) | $ (121,510) | $ (225,900) | $ (36,982) |
Net income (loss) per share attributable to common stockholders | |||
Basic | $ (0.13) | $ (0.26) | $ (0.05) |
Diluted | $ (0.13) | $ (0.26) | $ (0.05) |
Weighted average common shares used to compute net income (loss) per share attributable to common stockholders: | |||
Basic | 913,511 | 874,509 | 799,794 |
Diluted | 913,511 | 874,509 | 799,794 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Partners' Capital [Abstract] | |||
Net income (loss) | $ (121,510) | $ (225,900) | $ (36,982) |
Other comprehensive income (loss): | |||
Change in foreign currency translation adjustment | (23,480) | (27,522) | (1,586) |
Net change on unrealized gains (losses) on available-for-sale investments, net of tax | 267 | (607) | (436) |
Net change on unrealized gains (losses) on derivative instruments | 2,423 | ||
Other comprehensive income (loss) | (23,213) | (28,129) | 401 |
Comprehensive income (loss) | $ (144,723) | $ (254,029) | $ (36,581) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | OCI [Member] | Retained Earnings (Accumulated Deficit) [Member] |
Beginning balance, Value at Dec. 31, 2012 | $ 1,825,503 | $ 5 | $ 2,725,600 | $ (295,113) | $ (1,447) | $ (603,542) |
Beginning balance, Shares at Dec. 31, 2012 | 779,249,000 | |||||
Exercise of stock options, warrants and ESPP | 26,115 | 26,115 | ||||
Exercise of stock options, warrants and ESPP, Shares | 34,020,000 | |||||
Vesting of ZSUs, net | (1,387) | (901) | (486) | |||
Vesting of ZSUs, net, Shares | 22,914,000 | |||||
Cancellation of unvested restricted common stock, Shares | (502,000) | |||||
Stock-based expense | 84,393 | 84,393 | ||||
Vesting of common stock following the early exercise of options | 363 | 363 | ||||
Repurchase of common stock | (9,303) | 295,599 | (304,902) | |||
Repurchase of common stock, Shares | (3,372,000) | |||||
Tax cost (benefit) from stock-based expense | (11,832) | (11,832) | ||||
Net income (loss) | (36,982) | (36,982) | ||||
Other comprehensive income (loss) | 401 | 401 | ||||
Ending balance, Value at Dec. 31, 2013 | 1,877,271 | $ 5 | 2,823,738 | (1,046) | (945,426) | |
Ending balance, Shares at Dec. 31, 2013 | 832,309,000 | |||||
Exercise of stock options, warrants and ESPP | 16,421 | 16,421 | ||||
Exercise of stock options, warrants and ESPP, Shares | 11,461,000 | |||||
Vesting of ZSUs, net | (1,218) | (429) | (789) | |||
Vesting of ZSUs, net, Shares | 22,582,000 | |||||
Issuance of common stock in connection with business acquisitions | 131,158 | 131,158 | ||||
Issuance of common stock in connection with business acquisitions, Shares | 39,754,000 | |||||
Cancellation of unvested restricted common stock, Shares | (200,000) | |||||
Stock-based expense | 126,856 | 126,856 | ||||
Vesting of common stock following the early exercise of options | 341 | 341 | ||||
Retirement of treasury stock, net of repurchases | 789 | (789) | ||||
Retirement of treasury stock, Shares | (46,000) | |||||
Tax cost (benefit) from stock-based expense | (1,108) | (1,108) | ||||
Net income (loss) | (225,900) | (225,900) | ||||
Other comprehensive income (loss) | (28,129) | (28,129) | ||||
Ending balance, Value at Dec. 31, 2014 | 1,895,692 | $ 5 | 3,096,977 | (29,175) | (1,172,115) | |
Ending balance, Shares at Dec. 31, 2014 | 905,860,000 | |||||
Exercise of stock options, warrants and ESPP | 7,567 | 7,567 | ||||
Exercise of stock options, warrants and ESPP, Shares | 7,075,000 | |||||
Vesting of ZSUs, net | $ (2,901) | $ 1 | (2,130) | (772) | ||
Vesting of ZSUs, net, Shares | 27,966,000 | |||||
Issuance of common stock in connection with business acquisitions, Shares | 28,200,000 | |||||
Stock-based expense | $ 129,591 | 129,591 | ||||
Stock-based expense, Shares | 717,000 | |||||
Vesting of common stock following the early exercise of options | 170 | 170 | ||||
Repurchase of common stock | (98,902) | (98,902) | ||||
Repurchase of common stock, Shares | (38,001,000) | |||||
Retirement of treasury stock, net of repurchases | 732 | (732) | ||||
Tax cost (benefit) from stock-based expense | 516 | 516 | ||||
Net income (loss) | (121,510) | (121,510) | ||||
Other comprehensive income (loss) | (23,213) | (23,213) | ||||
Ending balance, Value at Dec. 31, 2015 | 1,786,901 | $ 6 | 3,234,545 | $ (98,942) | $ (52,388) | (1,296,320) |
Ending balance, Shares at Dec. 31, 2015 | 903,617,000 | |||||
Contributed capital, related to common control acquisition | $ (109) | $ 1,854 | $ (1,963) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net income (loss) | $ (121,510) | $ (225,900) | $ (36,982) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 54,315 | 82,894 | 129,047 |
Stock-based expense | 131,575 | 129,233 | 84,393 |
(Gain) loss from sales of investments, assets and other, net | (5,558) | (1,610) | 8,147 |
Tax benefits (costs) from stock-based awards | 989 | (86) | (11,244) |
Excess tax costs (benefits) from stock-based awards | (989) | 86 | 11,244 |
Accretion and amortization on marketable securities | 5,711 | 10,061 | 17,575 |
Deferred income taxes | (12,693) | (10,982) | (18,766) |
Impairment of intangible assets | 10,217 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 10,148 | (16,489) | 40,806 |
Income tax receivable | (1,929) | 5,433 | (1,336) |
Other assets | (16,167) | 971 | 3,932 |
Accounts payable | 10,934 | (6,393) | (2,325) |
Deferred revenue | (64,762) | 3,643 | (157,090) |
Other liabilities | (34,511) | 24,628 | (48,944) |
Net cash provided by (used in) operating activities | (44,447) | (4,511) | 28,674 |
Investing activities: | |||
Purchases of marketable securities | (101,091) | (758,509) | (1,074,919) |
Sales and maturities of marketable securities | 867,198 | 806,232 | 1,244,841 |
Acquisition of property and equipment | (7,832) | (9,201) | (7,813) |
Business acquisitions, net of cash acquired | (20,023) | (392,411) | (18,054) |
Proceeds from sale of property and equipment | 814 | 5,059 | 3,057 |
Proceeds from sale of equity method investment | 10,507 | ||
Restricted cash | 227 | ||
Other investing activities, net | 4,671 | 137 | |
Net cash provided by (used in) investing activities | 749,573 | (344,159) | 147,476 |
Financing activities: | |||
Taxes paid related to net share settlement of equity awards | (2,902) | (1,216) | (1,387) |
Repurchases of common stock | (88,409) | (9,302) | |
Proceeds from employee stock purchase plan and exercise of stock options | 7,567 | 16,421 | 26,115 |
Excess tax benefits (costs) from stock-based awards | 989 | (86) | (11,244) |
Repayment of debt | (100,000) | ||
Acquisition-related contingent consideration payment | (10,790) | ||
Net cash provided by (used in) financing activities | (93,545) | 15,119 | (95,818) |
Effect of exchange rate changes on cash and cash equivalents | (667) | (669) | (758) |
Net increase (decrease) in cash and cash equivalents | 610,914 | (334,220) | 79,574 |
Cash and cash equivalents, beginning of period | 131,303 | 465,523 | 385,949 |
Cash and cash equivalents, end of period | $ 742,217 | $ 131,303 | $ 465,523 |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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 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 North America, 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. 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 twelve months ended December 31, 2015 for various games resulted in an increase in revenue and income from operations of $0.5 million and $1.0 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 operations in the twelve months ended December 31, 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 did not impact our reported earnings per share for the three months ended December 31, 2015 and resulted in a $0.01 per share impact on our reported earnings per share for the twelve months ended December 31, 2015. For 2014, changes in our estimated average life of durable virtual goods resulted in a decrease in revenue, income from operations and net income of $1.2 million. These changes in estimates did not impact our reported earnings per share for the twelve months ended December 31, 2014. Segments We have one operating segment with one business activity, developing and monetizing social games. Our Chief Operating Decision Maker (“CODM”), our Chief Executive Officer, manages our operations on a consolidated basis for purposes of allocating resources. When evaluating performance and allocating resources, the CODM reviews financial information presented on a consolidated basis, accompanied by disaggregated bookings information for our games. Revenue Recognition We derive revenue from the sale of virtual goods associated with our online games and the sale of advertising. Online Game We operate our games as live services that allow players to play for free. Within these games, players can purchase virtual currency to obtain virtual goods to enhance their game-playing experience. Players can pay for our virtual currency using Facebook local currency payments when playing our games through the Facebook platform. On platforms other than Facebook, players purchase our virtual currency and/or virtual goods through various widely accepted payment methods offered in the games, including PayPal, Apple iTunes accounts, Google Wallet and credit cards. We also sell existing inventory of game cards that are initially recorded as a customer deposit liability which is included in other current liabilities on the consolidated balance sheet, net of fees retained by retailers and distributors. Upon redemption of a game card in one of our games and delivery of the purchased virtual currency to the player, these amounts are reclassified to deferred revenue. Advance payments from customers that are non-refundable and relate to non-cancellable contracts that specify our obligations are recorded to deferred revenue. All other advance payments that do not meet these criteria are recorded as customer deposits. We recognize revenue when all of the following conditions are satisfied: there is persuasive evidence of an arrangement; the service has been provided to the player; the collection of our fees is reasonably assured; and the amount of fees to be paid by the player is fixed or determinable. For purposes of determining when the service has been provided to the player, we have determined that an implied obligation exists to the paying player to continue displaying the purchased virtual goods within the online game over their estimated life or until they are consumed. Accordingly, we categorize our virtual goods as either consumable or durable. The proceeds from the sale of virtual goods are initially recorded in deferred revenue. Consumable virtual goods represent goods that can be consumed by a specific player action. Common characteristics of consumable goods may include virtual goods that are no longer displayed on the player’s game board after a short period of time, do not provide the player any continuing benefit following consumption or often times enable a player to perform an in-game action immediately. For the sale of consumable virtual goods, we recognize revenue as the goods are consumed, which approximates one month. Durable virtual goods represent virtual goods that are accessible to the player over an extended period of time. We recognize revenue from the sale of durable virtual goods ratably over the estimated average playing period of paying players for the applicable game, which represents our best estimate of the average life of durable virtual goods. If we do not have the ability to differentiate revenue attributable to durable virtual goods from consumable virtual goods for a specific game we recognize revenue on the sale of durable and consumable virtual goods for that game ratably over the estimated average period that paying players typically play that game. Prior to October 1, 2009, we did not have the data to determine the consumption dates for our consumable virtual goods or to differentiate revenue attributable to durable virtual goods from consumable virtual goods. Beginning in October 2009, we had sufficient data to separately account for consumable and durable virtual goods in one of our games, thus allowing us to recognize revenue related to consumable goods upon consumption. Since January 2010, we have had this data for substantially all of our web games, thus allowing us to recognize revenue related to consumable goods upon consumption for our web-based games. However, for our standalone mobile games, we do not have the requisite data to separately account for consumable and durable virtual goods and have therefore recorded mobile revenue ratably over the estimated average payer life. We expect that in future periods there will be changes in the mix of durable and consumable virtual goods sold, reduced virtual good sales in some existing games, changes in estimates in average paying payer life and/or changes in our ability to make such estimates. When such changes occur, and in particular if more of our revenue in any period is derived from goods for which revenue is recognized over the estimated average playing period, or that period increases on average, the amount of revenue that we recognize in a future period may be reduced, perhaps significantly. On a quarterly basis, we determine the estimated average playing period for paying players by game beginning at the time of a payer’s first purchase in that game and ending on a date when that paying player is no longer playing the game. To determine when paying players are no longer playing a given game, we analyze monthly cohorts of paying players for that game who made their first in-game payment between six and 18 months prior to the beginning of each quarter and determine whether each player within the cohort is an active or inactive player as of the date of our analysis. To determine which players are inactive, we analyze the dates that each paying player last logged into that game. We determine a paying player to be inactive once they have reached a period of inactivity for which it is probable (defined as at least 80%) that a player will not return to a specific game. For the payers deemed inactive as of our analysis date we analyze the dates they last logged into that game to determine the rate at which inactive players stopped playing. Based on these dates we then project a date at which all paying players for each monthly cohort are expected to cease playing our games. We then average the time periods from first purchase date and the date the last player is expected to cease playing the game for each of the monthly cohorts to determine the total playing period for that game. To determine the estimated average playing period we then divide this total playing period by two. The use of this “average” approach is supported by our observations that paying players typically become inactive at a relatively consistent rate for our games. If future data indicates paying players do not become inactive at a relatively consistent rate, we will modify our calculations accordingly. When a new game is launched and only a limited period of paying player data is available for our analysis, then we also consider other factors, such as the estimated average playing period for other recently launched games with similar characteristics, to determine the estimated average playing period. Future usage patterns may differ from historical usage patterns and therefore the estimated average playing periods may change in the future. We assess the estimated average playing period for paying players and the estimated average life of our virtual goods quarterly. Changes in our estimated average life of durable virtual goods during the twelve months ended December 31, 2015 for various games resulted in an increase in revenue, income from operations and net income of $1.0 million, which is the result of adjusting the remaining recognition period of deferred revenue generated in prior periods at the time of a change in estimate. These changes in estimates did not impact our reported earnings per share for the twelve months ended December 31, 2015. From July 2010 through the third quarter of 2013, Facebook’s proprietary virtual currency, Facebook Credits, was the primary in-game payment method for our games played on the Facebook platform. Under the terms of our agreement with Facebook, Facebook set the price our players pay for Facebook Credits and collected the funds from the sale of Facebook Credits. Facebook’s stated face value of a Facebook Credit was $0.10. For each Facebook Credit purchased by our players and redeemed in our games, Facebook remitted to us $0.07, which is the amount we recognized as revenue. Accordingly, we recognized revenue net of the amounts retained by Facebook related to Facebook Credits transactions because we did not set the pricing of Facebook Credits sold to the players of our games on Facebook. In July 2013, Facebook began to transition payments made on the Facebook platform from Facebook Credits to Facebook’s local currency-based payments program. This transition was completed in the fourth quarter of 2013. Under the terms of our agreement, Facebook remits to us 70% of the price we request to be charged to the game player for each transaction. We recognize revenue net of the amounts retained by Facebook related to Facebook local currency-based payments because Facebook may choose to alter our recommended price, for example by offering a discount or other incentives to players playing on their platform. Additionally, we do not receive information from Facebook indicating the amount of such discounts offered to our paying players or regarding the actual cash paid by our players to Facebook. Accordingly, we are unable to determine the gross amount paid by our players to Facebook. For revenue earned through certain mobile platforms, including Apple iOS and Google Android, we recognize online game revenue based on the gross amount paid by the player because we are the primary obligor and we have the contractual right to determine the price to be paid by the player. We record the related platform and payment processing fees as cost of revenue in the period incurred. We estimate chargebacks from our third-party web and mobile payment processors to account for potential future chargebacks based on historical data and record such amounts as a reduction of revenue. Advertising We have contractual relationships with agencies, advertising brokers and certain advertisers for advertisements within our games. We generally report our advertising revenue net of amounts retained by advertising networks, agencies, and brokers because we are not the primary obligor in our arrangements, we do not set the pricing, and we do not establish or maintain the relationship with the advertiser. Certain advertising arrangements that are directly between us and end advertisers are recognized gross equal to the price paid to us by the end advertiser since we are the primary obligor and we determine the price. We recognize advertising revenue for branded virtual goods and sponsorships, engagement advertisements and offers, mobile advertisements and other advertisements as advertisements are delivered to customers as long as evidence of the arrangement exists (executed contract), the price is fixed or determinable, and we have assessed collectability as reasonably assured. Certain branded in-game sponsorships that involve virtual goods are deferred and recognized over the estimated life of the branded virtual good or as consumed, similar to online game revenue. Price is determined to be fixed and determinable when there is a fixed price in the applicable evidence of the arrangement, which may include a master contract, insertion order, or a third party statement of activity. For branded virtual goods and sponsorships, we determine the delivery criteria has been met based on delivery information primarily from third parties. For engagement advertisements and offers, mobile advertisements, and other advertisements, delivery occurs when the advertisement has been displayed or the offer has been completed by the customer, as evidenced by third party verification reports supporting the number of advertisements displayed or offers completed. Multiple-element Arrangements We allocate arrangement consideration in multiple-deliverable revenue arrangements at the inception of an arrangement to all deliverables based on the relative selling price method, generally based on our best estimate of selling price. We offer certain promotions to customers from time to time that include the sale of in-game virtual currency via the sale of a game card and also other deliverables such as a limited edition in-game virtual good. Cost of Revenue Amounts recorded as cost of revenue relate to direct expenses incurred in order to generate online game revenue. Such costs are recorded as incurred. Our cost of revenue consists primarily of hosting and data center costs related to operating our games, including depreciation, consulting costs primarily related to third-party provisioning of customer support services, payment processing fees, licensing fees, salaries, benefits and stock-based expense for our customer support and infrastructure teams. Cost of revenue also includes amortization expense related to purchased technology of $23.9 million, $21.4 million and $11.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. Cash and Cash Equivalents Cash equivalents consist of cash on hand, money market funds, commercial paper, corporate bonds and U.S. government-issued obligations with maturities of 90 days or less from the date of purchase. Marketable Securities and Non-Marketable Securities Marketable securities consist of U.S. government-issued obligations and corporate debt securities. Management determines the appropriate classification of marketable securities at the time of purchase and evaluates such determination at each balance sheet date. The fair value of marketable securities is determined as the exit price in the principal market in which we would transact. Based on our intentions regarding our marketable securities, all marketable securities are classified as available-for-sale and are carried at fair value with unrealized gains and losses recorded as a separate component of other comprehensive income, net of income taxes. Realized gains and losses are determined using the specific-identification method and are reflected as a component of other income (expense), net in the consolidated statements of operations when they are realized. When we determine that a decline in fair value is other than temporary, the cost basis of the individual security is written down to the fair value as a new cost basis and the amount of the write-down is accounted for as a realized loss in other income (expense), net. The new cost basis will not be adjusted for subsequent recoveries in fair value. Determination of whether declines in fair value are other than temporary requires judgment regarding the amount and timing of recovery. No such impairments of marketable securities have been recorded in any of the periods presented. For non-marketable securities in which we exercise significant influence on the equity to which these non-marketable securities relate, we apply the equity method of accounting. Our non-marketable securities are subject to periodic impairment reviews. In the first quarter of 2015, we sold our only equity method investment and recorded a $6.2 million gain in other income in our consolidated statement of operations. As of December 31, 2015, we did not have any other equity method investments. Restricted Cash Restricted cash consists of collateral for royalty agreements and funds held in escrow in accordance with the terms of certain of our business acquisition agreements. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. We review accounts receivable regularly and make estimates for the allowance for doubtful accounts when there is doubt as to our ability to collect individual balances. In evaluating our ability to collect outstanding receivable balances, we consider many factors, including the age of the balance, the customer’s payment history and current creditworthiness, and current economic trends. Bad debts are written off after all collection efforts have ceased. We do not require collateral from our customers. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the estimated useful lives of the improvements or the lease term. Business Combinations We account for acquisitions of entities that include inputs and processes and have the ability to create outputs as business combinations. We allocate the purchase price of the acquisition, which includes the estimated acquisition date fair value of contingent consideration, to the tangible assets, liabilities, and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. During the measurement period, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. After the measurement period, which could be up to one year after the transaction date, subsequent adjustments are recorded to our consolidated statements of operations. We record changes in the fair value of contingent consideration liabilities within operating expenses in our consolidated statement of operations each reporting period. Goodwill and Indefinite-Lived Intangible Assets Goodwill and indefinite-lived intangible assets are carried at cost and are evaluated annually for impairment, or more frequently if circumstances exist that indicate that impairment may exist. When conducting our annual goodwill impairment assessment, we perform a quantitative evaluation of whether goodwill is impaired using the two-step impairment test. The first step is comparing the fair value of our reporting unit to its carrying value. We consider the enterprise to be the reporting unit for this analysis. If step one indicates that impairment potentially exists, the second step is performed to measure the amount of impairment, if any. We record the amount by which the carrying value of the goodwill exceeds its implied fair value, if any, as impairment. We test recoverability of indefinite-lived intangible assets using a qualitative approach on whether it is more likely than not that the fair value of the intangible asset exceeds its carrying value. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. Other Intangible Assets Other intangible assets are carried at cost less accumulated amortization. Amortization is recorded over the estimated useful lives of the assets, generally 12 to 60 months. Impairment of Long-Lived Assets Long-lived assets, including other intangible assets (excluding indefinite-lived intangible assets), are reviewed for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. If such circumstances are present, we assess the recoverability of the long-lived assets by comparing the carrying value to the undiscounted future cash flows associated with the related assets. If the future net undiscounted cash flows are less than the carrying value of the assets, the assets are considered impaired and an expense, equal to the amount required to reduce the carrying value of the assets to the estimated fair value, is recorded as impairment of intangible assets in the consolidated statements of operations. Significant judgment is required to estimate the amount and timing of future cash flows and the relative risk of achieving those cash flows. Assumptions and estimates about future values and remaining useful lives are complex and often subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in our business strategy and our internal forecasts. For example, if our future operating results do not meet current forecasts, we may be required to record future impairment charges for acquired intangible assets. Impairment charges could materially decrease our future net income and result in lower asset values on our balance sheet. There were no impairment charges in 2015 and 2014. In 2013, we recorded a $10.2 million impairment charge related to certain games associated with intangible assets previously acquired through various business combinations. Stock-Based Expense Prior to our IPO in December 2011, we granted ZSUs to our employees that generally vest upon the satisfaction of both a service-based condition of up to four years and a liquidity condition, the latter of which was satisfied in connection with our IPO in December 2011. Because the liquidity condition was not satisfied until our IPO, in prior periods, we had not recorded any expense relating to the granting of our ZSUs. In the fourth quarter of 2011, after the IPO, we recognized $510 million of stock-based expense associated with ZSUs that vested in connection with our IPO. This expense is in addition to the stock-based expense we recognize related to outstanding equity awards other than ZSUs as well as expenses related to ZSUs or other equity awards that may be granted in the future. For ZSUs granted prior to the IPO, and for awards subject to performance conditions, we recognize stock-based expense based on grant date fair value using the accelerated attribution method in which compensation cost for each vesting tranche in an award is recognized ratably from the service inception date to the vesting date for that tranche. For ZSUs granted after the IPO, which are only subject to a service condition, we recognize stock-based expense based on grant date fair value on a ratable basis over the requisite service period for the entire award. We estimate the fair value of stock options using the Black-Scholes option-pricing model. This model requires the use of the following assumptions: expected volatility of our Class A common stock, which is based on our own calculated 3 year historical rate; expected life of the option award, which we elected to calculate using the simplified method; expected dividend yield, which is 0%, as we have not paid and do not have any plans to pay dividends on our common stock; and the risk-free interest rate, which is based on the U.S. Treasury yield curve in effect at the time of grant with maturities equal to the grant’s expected life. We changed the basis of estimating our expected volatility in the fourth quarter of 2015 from using peer group data in the industry in which we do business to using our own calculated rate as we now have sufficient historical data (3 years of historical trading activity) that we believe provides a reasonable basis for our estimate. Option grants generally vest over four years, with 25% vesting after one year and the remainder vesting monthly thereafter over 36 months. The options have a contractual term of 10 years. If any of the assumptions used in the Black-Scholes model changes significantly, stock-based expense for future awards may differ materially compared with the awards granted previously. We record stock-based expense for stock options on a ratable basis over the vesting term. For stock options issued to non-employees, including consultants, we record expense related to stock options equal to the fair value of the options calculated using the Black-Scholes model over the service performance period. The fair value of options granted to non-employees is remeasured over the vesting period and recognized as an expense over the period the services are received. Stock-based expense is recorded net of estimated forfeitures so that expense is recorded for only those stock-based awards that we expect to vest. We estimate forfeitures based on our historical forfeiture of equity awards adjusted to reflect future changes in facts and circumstances, if any. We will revise our estimated forfeiture rate if actual forfeitures differ from our initial estimates. Income Taxes We account for income taxes using an asset and liability approach, which requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns. The measurement of current and deferred tax assets and liabilities is based on provisions of enacted tax laws; the effects of future changes in tax laws or rates are not anticipated. If necessary, the measurement of deferred tax assets is reduced by the amount of any tax benefits that are not expected to be realized based on available evidence. We account for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We recognize interest and penalties, if any, related to unrecognized tax benefits in the provision for income taxes. Foreign Currency Transactions Generally, the functional currency of our international subsidiaries is the U.S. dollar or the local currency that the international subsidiary operates in. For these subsidiaries where the U.S. dollar is not the functional currency, foreign currency denominated monetary assets and liabilities are remeasured into U.S. dollars at current exchange rates and foreign currency denominated nonmonetary assets and liabilities are remeasured into U.S. dollars at historical exchange rates. Gains or losses from foreign currency remeasurement and settlements are included in other income (expense), net in the consolidated statements of operations. For foreign subsidiaries where the functional currency is the local currency, we use the period-end exchange rates to translate assets and liabilities, and the average exchange rates to translate revenues and expenses into U.S. dollars. We record translation gains and losses in accumulated other comprehensive income (loss) as a component of stockholders’ equity. Concentration of Credit Risk and Significant Customers Financial instruments, which potentially expose us to concentrations of credit risk, consist primarily of cash and cash equivalents, short-term and long-term marketable securities, and accounts receivable. Substantially all of our cash, cash equivalents and short-term marketable securities are maintained with two financial institutions with high credit standings. We perform periodic evaluations of the relative credit standing of these institutions. Accounts receivable are unsecured and represent amounts due to us based on contractual obligations where a signed and executed contract or click-through agreement exists. In cases where we are aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, we record a specific allowance as a reduction to the accounts receivable balance to reduce it to its net realizable value. Facebook, Apple, and Google are significant distribution, marketing, promotion and payment platforms for our social games. A significant portion of our 2015, 2014 and 2013 revenue was generated from players who accessed our games through these platforms. As of December 31, 2015 and December 31, 2014, 17% and 22% of our accounts receivable, respectively, were amounts owed to us by Facebook. Additionally, as of December 31, 2015 and December 31, 2014, 17% and 23% of our accounts receivable, respectively, were amounts owed to us by Apple and 14% and 8% of our accounts receivable, respectively, were amounts owed to us by Google. Advertising Expense Costs for advertising are expensed as incurred. Advertising costs, which are included in sales and marketing expense, primarily consisting of player acquisition costs, totaled $128.9 million, $101.7 million and $60.6 million for the years ended December 31, 2015, 2014 and 2013, respectively. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers Revenue Recognition (Topic 605) In September 2015, the FASB issued an ASU 2015-16, “ Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments In November 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-17, “ Balance Sheet Classification of Deferred Taxes |
Cash and Investments
Cash and Investments | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Investments | 2. Cash and Investments Cash and investments consist of the following (in thousands): December 31, December 31, Cash and cash equivalents: Cash $ 162,495 $ 89,708 Money market funds 362,587 41,595 Commercial paper 160,151 — Corporate bonds 16,995 — US government and government agency debt securities 39,989 — Total cash and cash equivalents $ 742,217 $ 131,303 Marketable securities: U.S. government and government agency debt securities $ 144,986 $ 404,982 Corporate debt securities 100,047 611,624 Total $ 245,033 $ 1,016,606 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): December 31, 2015 Amortized Gross Gross Aggregate U.S. government and government agency debt securities $ 145,066 $ — $ (80 ) $ 144,986 Corporate debt securities 100,093 12 (58 ) 100,047 $ 245,159 $ 12 $ (138 ) $ 245,033 December 31, 2014 Amortized Gross Gross Aggregate U.S. government and government agency debt securities $ 405,049 $ 68 $ (135 ) $ 404,982 Corporate debt securities 611,950 39 (365 ) 611,624 $ 1,016,999 $ 107 $ (500 ) $ 1,016,606 The estimated fair value of available-for-sale marketable securities, classified by their contractual maturities was as follows (in thousands): December 31, December 31, Due within one year $ 245,033 $ 785,221 After one year through three years — 231,385 Total $ 245,033 $ 1,016,606 Changes in market interest rates and bond yields cause certain of our investments to fall below their cost basis, resulting in unrealized losses on marketable securities. As of December 31, 2015, we had unrealized losses of $0.1 million related to marketable securities that had a fair value of $199.1 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. December 31, 2015 December 31, 2014 Fair Value Unrealized loss Fair Value Unrealized loss U.S. government and government agency debt securities $ 137,485 $ (80 ) $ 222,723 $ (135 ) Corporate debt securities 61,622 (58 ) 398,777 (365 ) Total $ 199,107 $ (138 ) $ 621,500 $ (500 ) As of December 31, 2015 and 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 | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements Cash equivalents and short-term and long-term marketable securities, consisting of money market funds, U.S. government and government agency debt 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. During the periods ending December 31, 2015 and 2014 we recorded the change in estimated fair value of the contingent consideration liability as an expense of approximately $6.1 million and $32.7 million, respectively within research and development expense in our consolidated statements of operations. 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 was $58.8 million, which included $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. We initially 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. In the fourth quarter of 2015, we updated this analysis based on our updated projections and recorded the change in estimated fair value of the contingent consideration liability as a benefit of approximately $3.3 million within research and development expense in our consolidated statement of operations. The current contingent consideration expected to be earned and payable by us is $18.5 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 assets and liabilities among the three Levels of the fair value hierarchy are as follows (in thousands): December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 362,587 $ — $ — $ 362,587 U.S. government and government agency debt securities — 184,975 — 184,975 Corporate debt securities (1) — 277,193 — 277,193 Total $ 362,587 $ 462,168 $ — $ 824,755 Liabilities Contingent consideration $ — $ — $ 18,490 $ 18,490 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 | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment consist of the following (in thousands): December 31, December 31, Computer equipment $ 36,373 $ 141,946 Software 30,950 31,778 Land 89,130 89,130 Building 195,372 194,574 Furniture and fixtures 10,348 10,616 Leasehold improvements 7,748 9,694 369,921 477,738 Less accumulated depreciation (96,700 ) (179,819 ) Total property and equipment, net $ 273,221 $ 297,919 During the fourth quarter of 2015, we completed the exit of one of our data centers in Santa Clara, and initiated the sale of certain computer data center equipment, resulting in the assets meeting held for sale criteria. Accordingly, these assets were written down to their fair value and reclassified from property and equipment to other current assets, with $83.9 million and $80.7 million being reclassified from computer equipment and accumulated depreciation respectively, for a net amount of $3.2 million. The $3.2 million reflects the fair value of the assets less estimated costs to sell. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | 5. Acquisitions 2015 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 (see Note 3—“Fair Value Measurements” for changes in this estimate). 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 Measurements.” The following table summarizes the acquisition 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. Transaction costs incurred by the Company in connection with the acquisition, including professional fees, were $0.9 million and are included in our statement of operations for the twelve months ended December 31, 2015. The results of operations for the acquisition of Rising Tide have been included in our consolidated statement of operations since the date of acquisition. Pro forma results of operations related to our acquisition have not been presented as it is not material to our 2015 consolidated statements. 2014 Acquisitions On February 11, 2014, we acquired 100% of the outstanding stock of NaturalMotion, a provider of games for mobile phones and tablets domiciled in the U.K. We acquired NaturalMotion to leverage their strong portfolio of technology, assembled workforce and existing mobile games in order to expand and enhance our game offerings particularly on mobile platforms. The acquisition date fair value of the purchase consideration was $522.2 million, which included the following (in thousands): Fair Value of Cash $ 391,000 Common stock (28,178,201 shares) 130,465 Fair value of stock options assumed 693 Total $ 522,158 The value of the purchase consideration attributed to the 28.2 million common shares issued was based on a $4.63 closing price of the Company’s Class A Common Stock on the date of the closing of the acquisition. The following table summarizes the final acquisition date fair value of net tangible assets acquired and liabilities assumed from NaturalMotion (in thousands, unaudited): Estimated Estimated Tangible net assets (liabilities) assumed (1) $ 1,259 N/A Intangible assets Developed technology 59,900 3 years Branding and trade names 15,000 4.6 years Goodwill (1) 448,821 N/A Total $ 524,980 (1) Includes the impact of adjustments to the purchase price allocation in 2014 ($3.9 million) and 2015 ($2.8 million) resulting from changes in net assets (liabilities) acquired and other adjustments pursuant to our business combinations policy and recorded within the measurement period. Goodwill, which is partially deductible for U.S. income 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. On the acquisition date, we assumed unvested NaturalMotion employee stock options and exchanged them for options to purchase shares of our Class A Common Stock with a preliminary fair value of $29.7 million. $0.7 million of this value was allocated to purchase consideration and the remaining $29.0 million was allocated to future compensation expense which will be recorded as stock-based expense over the vesting period of the awards. Also on the acquisition date, we granted to continuing employees 11.6 million shares of our Class A Common Stock that vest over a period of three years from the grant date, subject to continued employment with Zynga. The value of these shares on the acquisition date was $53.6 million and will be recorded as stock-based expense over the requisite service period in accordance with the vesting terms. Transaction costs incurred by the Company in connection with the acquisition, including professional fees and transaction taxes, were $6.4 million and are included in our statement of operations for the twelve months ended December 31, 2014. The amounts of revenue and net loss of NaturalMotion included in the Company’s condensed consolidated statement of operations for the post acquisition period from February 12, 2014 to December 31, 2014 are as follows (unaudited, in thousands): February 12, 2014 to Total revenues $ 26,800 Net loss 74,891 The net loss includes approximately $29.5 million of stock-based expense and $19.7 million related to the amortization of acquired intangibles, net of tax. The following pro forma financial information summarizes the combined results of operations for the Company and NaturalMotion, which was significant for the purposes of unaudited pro forma financial information disclosure, as though the companies were combined as of the beginning of the Company’s fiscal years presented. The pro forma financial information was as follows (unaudited, in thousands): 12 Months Ended 2014 2013 Total revenues $ 698,608 $ 912,880 Net loss (233,036 ) (96,048 ) The pro forma financial information for all periods presented has been calculated after adjusting the results of NaturalMotion to reflect the business combination accounting effects resulting from this acquisition including fair value adjustments resulting from purchase accounting, the amortization expenses from acquired intangible assets, the stock-based expense for unvested stock options assumed and restricted stock awards granted and the related tax effects as though the acquisition occurred as of the beginning of the periods presented. The pro forma financial information is for informational purposes only and is not indicative of the results of operations that would have been achieved based on these assumptions. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 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, 2013 to December 31, 2015 are as follows (in thousands): Goodwill—December 31, 2013 $ 227,989 Additions 450,582 Foreign currency translation adjustments (1) (23,994 ) Goodwill adjustments (2) (3,799 ) Goodwill—December 31, 2014 650,778 Additions 25,050 Foreign currency translation adjustments (1) (20,816 ) Goodwill adjustments (2) 2,659 Goodwill—December 31, 2015 $ 657,671 (1) The decreases are 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 and other adjustments, pursuant to our business combinations policy. The details of our acquisition-related intangible assets are as follows (in thousands): December 31, 2015 Gross Carrying Accumulated Net Book Developed technology $ 174,970 $ (118,940 ) $ 56,030 Trademarks, branding and domain names 16,290 (9,210 ) 7,080 Acquired lease intangibles 5,708 (4,802 ) 906 Total $ 196,968 $ (132,952 ) $ 64,016 December 31, 2014 Gross Carrying Accumulated Net Book 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 December 31, 2015, the weighted-average remaining useful lives of all identified acquired intangible assets are 3.0 years for developed technology, 1.0 years for trademarks, branding, and domain names, and 3.3 years for acquired lease intangibles. Amortization expense of intangible assets for the years ended December 31, 2015, 2014 and 2013 were $27.4 million, $24.6 million and $12.2 million, respectively. As of December 31, 2015, future amortization expense related to the intangible assets is expected to be recognized as shown below (in thousands): Year ending December 31: 2016 $ 29,084 2017 11,203 2018 7,634 2019 and thereafter 9,975 Total $ 57,896 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes Income (loss) before income tax expense consists of the following for the periods shown below (in thousands): Year Ended December 31, 2015 2014 2013 United States $ (83,432 ) $ (132,281 ) $ (56,215 ) International (46,750 ) (100,947 ) (8,654 ) Total $ (130,182 ) $ (233,228 ) $ (64,869 ) Income tax expense (benefit) consists of the following for the periods shown below (in thousands): Year Ended December 31, 2015 2014 2013 Current: Federal $ (30 ) $ (132 ) $ (15,712 ) State (2,863 ) (16 ) (134 ) Foreign 3,817 2,777 3,206 Total current tax expense 924 2,629 (12,640 ) Deferred: Federal (8,818 ) (6,888 ) (14,357 ) State (504 ) (353 ) (86 ) Foreign (274 ) (2,715 ) (804 ) Total deferred tax expense (benefit) (9,596 ) (9,956 ) (15,247 ) Provision for (benefit from) income taxes $ (8,672 ) $ (7,327 ) $ (27,887 ) The reconciliation of federal statutory income tax provision (benefit) to our effective income tax provision is as follows (in thousands): Year Ended December 31, 2015 2014 2013 Expected benefit at U.S. federal statutory rate $ (45,564 ) $ (81,630 ) $ (22,704 ) State income taxes—net of federal benefit (2,863 ) (2,681 ) (1,503 ) Income taxed at foreign rates 18,406 33,417 4,024 Equity-based compensation 1,125 2,865 6,741 Tax credits — — (12,389 ) Tax reserve for uncertain tax positions 1,827 19 2,224 Change in valuation allowance 17,526 37,202 14,705 Change in earnings mix — — (16,306 ) Impact of change in tax rates (18 ) 25 (1,530 ) Acquisition costs 650 2,981 (1,480 ) Other 239 475 331 $ (8,672 ) $ (7,327 ) $ (27,887 ) We have not provided U.S. income taxes and foreign withholding taxes on the undistributed earnings of our profitable foreign subsidiaries as of December 31, 2015 because we intend to permanently reinvest such earnings outside the United States. If these foreign earnings were to be repatriated in the future, the related U.S. tax liability may be reduced by any foreign income taxes previously paid on these earnings. As of December 31, 2015, the cumulative amount of earnings upon which U.S. income taxes have not been provided is approximately $19.7 million. Our deferred tax assets (liabilities) are as follows (in thousands): Year Ended December 31, 2015 2014 Deferred tax assets: Tax credit carryforwards $ 47,978 $ 40,501 Net operating loss carryforwards 44,551 30,381 Equity based compensation 24,930 28,263 Acquired intangible assets 13,524 — Accrued expenses 11,593 19,406 Charitable contributions 3,930 2,047 State taxes 2,321 2,933 Other accrued compensation 1,664 6,664 Deferred revenue 1,309 1,129 Other 434 1,956 Deferred rent — 2,186 Valuation allowance (151,808 ) (127,917 ) Net deferred tax assets $ 426 $ 7,549 Deferred tax liabilities: Acquired intangible assets $ — $ (1,654 ) Deferred rent (675 ) — Depreciation (5,777 ) (8,453 ) Net deferred tax liabilities (6,452 ) (10,107 ) Net deferred taxes $ (6,026 ) $ (2,558 ) Due to our history of net operating losses, we believe it is more likely than not that certain federal, state, and foreign deferred tax assets will not be realized as of December 31, 2015. The valuation allowance as of December 31, 2015 and December 31, 2014 was $151.8 million and $127.9 million, respectively. The increase in valuation allowance for 2015 is primarily related to net operating losses generated and acquired during the current year. Net operating loss and tax credit carryforwards as of December 31, 2015 are as follows (in thousands): Amount Expiration years Net operating losses, federal $ 372,373 2027 - 2035 Net operating losses, state 340,888 2017 - 2035 Tax credit, federal 82,111 2030 - 2035 Tax credits, state 72,615 2019 - indefinite Net operating losses, foreign 44,398 2033 - indefinite Tax credits, foreign 443 indefinite Excess tax benefits associated with stock option exercises and other equity awards are credited to stockholders’ equity in the period cash taxes payable is reduced. As of December 31, 2015, the portion of net operating loss carryforwards related to stock awards is $472.3 million, the benefit of which will be credited to additional paid-in capital when realized. The federal and state net operating loss carryforwards are subject to various annual limitations under Section 382 of the Internal Revenue Code and similar state provisions. The following table reflects changes in the gross unrecognized tax benefits (in thousands): December 31, 2012 $ 98,721 Additions based on tax positions related to 2013 16,414 Additions for tax positions of prior years 18,356 December 31, 2013 $ 133,491 Additions based on tax positions related to 2014 7,738 Additions for tax positions of prior years 171 Reductions for tax positions of prior years (511 ) December 31, 2014 $ 140,889 Additions based on tax positions related to 2015 8,876 Additions for tax positions of prior years 82 Reductions for tax positions of prior years (2,817 ) Decreases related to settlements of prior year tax positions (4,185 ) December 31, 2015 $ (142,845 ) During all years presented, we recognized interest and penalties related to unrecognized tax benefits within the provision for income taxes on the consolidated statements of operations. The amount of interest and penalties accrued as of December 31, 2015 and 2014 was $0.6 million and $0.7 million, respectively. If the balance of gross unrecognized tax benefits of $142.8 million as of December 31, 2015 was realized in a future period, this would result in a tax benefit of $8.5 million within our provision of income taxes at such time. We classify uncertain tax positions as non-current income tax liabilities unless expected to be paid within one year or otherwise directly related to an existing deferred tax asset, in which case the uncertain tax position is recorded net of the asset on the balance sheet. At December 31, 2015, $91.8 million of our gross unrecognized tax benefits were recorded as a reduction of the related deferred tax assets and the remaining $51.0 million of our gross unrecognized tax benefits were recorded as long-term liabilities in our consolidated balance sheets. We file income tax returns in the U.S. federal jurisdiction as well as many U.S. states and certain foreign jurisdictions. The material jurisdictions in which we are subject to potential examination include the United States, United Kingdom, and Ireland. We are subject to examination in these jurisdictions for all years since our inception in 2007. Fiscal years outside the normal statute of limitation remain open to audit by tax authorities due to tax attributes generated in those early years which have been carried forward and may be audited in subsequent years when utilized. We do not expect any material changes to our unrecognized tax benefits within the next twelve months. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | 8. Other Current Liabilities Other current liabilities consist of the following (in thousands): December 31, December 31, Accrued accounts payable $ 31,700 $ 17,542 Accrued compensation liability 16,278 26,113 Accrued restructuring liability 9,859 7,214 Other current liabilities 19,854 20,955 Accrued escrow for acquisitions — 47,906 Contingent consideration liability — 44,420 Total other current liabilities $ 77,691 $ 164,150 Accrued compensation liability represents employee bonus and other payroll withholding expenses. Accrued restructuring liability represents amounts payable related to our restructuring plans. Other current liabilities include various expenses that we accrue for transaction taxes, customer deposits and accrued vendor expenses. Accrued escrow from acquisitions in 2014 mainly relates to amounts held in escrow under the terms of certain acquisition agreements. Contingent consideration liability in 2014 represents the estimated fair value of additional consideration payable in connection with our acquisition of Spooky Cool. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 9. Restructuring During the twelve months ended December 31, 2015, we recorded total restructuring charges of $36.5 million which were classified within our consolidated statement of operations as follows: Cost of Revenue $1.1 million, Research and Development $14.1 million, Sales and Marketing $0.8 million and General and Administrative $20.5 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 $33.8 million in the twelve months ended December 31, 2015, which is included in operating expenses in our consolidated statement of operations. The $33.8 million restructuring charge is comprised of $10.7 million of employee severance costs and $23.1 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 December 31, 2015 was $26.4 million and is expected to be paid out over the next 6.4 years. The following table presents the activity for the three months ended June 30, 2015 and September 30, 2015 and the three and twelve months ended December 31, 2015 related to the Q2 2015 restructuring plan (in thousands): Three Months Ended Twelve Months June 30, September 30, December 31, Restructuring liability—beginning of period $ — $ 1,860 $ 491 $ — Restructuring expense and adjustments 12,282 367 21,200 33,849 Cash payments (10,422 ) (1,736 ) 4,715 (1) (7,443 ) Restructuring liability (Q2 2015 Plan)—end of period $ 1,860 $ 491 $ 26,406 $ 26,406 (1) Cash payments in the fourth quarter of 2015 include adjustments to restructuring expense that do not have an effect on the restructuring liability. These adjustments consist primarily of deferred items recognized, losses on the disposal of property and equipment and write-offs of prepaid licenses. 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 twelve months ended December 31, 2015, which is included in operating expenses in our consolidated statement of operations. The $3.8 million restructuring charge in the twelve months ended December 31, 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 twelve months ended December 31, 2015 related to the Q1 2015 Restructuring plan (in thousands): Three Months Ended Twelve Months March 31, June 30, 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 December 31, 2015. Q1 2014 Restructuring Plan The following table presents the activity for the three months ended March 31, 2015, June 30, 2015, September 30, 2015 and the three and twelve months ended December 31, 2015 related to the Q1 2014 restructuring plan (in thousands): Three Months Ended Twelve March 31, June 30, September 30, December 31, Restructuring liability—beginning of period $ 10,009 $ 8,082 $ 6,663 $ 5,205 $ 10,009 Restructuring expense and adjustments 189 30 33 (1,466 ) (2) (1,214 ) Cash payments (2,116 ) (1,449 ) (1,491 ) (1,449 ) (6,505 ) Restructuring liability (Q1 2014 Plan)—end of period $ 8,082 $ 6,663 $ 5,205 $ 2,290 $ 2,290 (2) A $1.5 million adjustment was recorded in the fourth quarter of 2015 to reduce our restructuring liability as a result of executing a sublease agreement with a new tenant in a data center facility we had previously vacated in the first quarter of 2014. The remaining liability of $2.3 million is expected to be paid out in 2016. Other Plans The following table presents the activity for the three months ended March 31, 2015, June 30, 2015, September 30, 2015 and the three and twelve months ended December 31, 2015 related to all other remaining historical restructuring plans from prior years (in thousands): Three Months Ended Twelve Months March 31, June 30, September 30, December 31, Restructuring liability—beginning of period $ 2,857 $ 1,957 $ 1,933 $ 784 $ 2,857 Restructuring expense and adjustments 31 — 19 8 58 Cash payments (931 ) (24 ) (1,168 ) (460 ) (2,583 ) Restructuring liability (2013 Plan)—end of period $ 1,957 $ 1,933 $ 784 $ 332 $ 332 The remaining liability of $0.3 million is expected to be paid out over the next 1.8 years. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity Common Stock Our three classes of common stock are Class A common stock, Class B common stock and Class C common stock. The following are the rights and privileges of our classes of common stock: Dividends Voting Rights • If we were to seek to amend our Certificate of Incorporation to increase the authorized number of shares of a class of stock, or to increase or decrease the par value of a class of stock; and • If we were to seek to amend our Certificate of Incorporation in a manner that altered or changed the powers, preferences or special rights of a class of stock in a manner that affected its holders adversely. Liquidation. Preemptive or Similar Rights Conversion. Stock Repurchases In October 2015, our Board of Directors authorized a share repurchase program of up to $200 million of our outstanding Class A common stock. 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. In the fourth quarter of 2015, we repurchased 37.9 million shares of our Class A common stock under the repurchase program at a weighted average price of $2.60 per share for a total of $98.9 million. In the fourth quarter of 2015, $88.4 million of the share repurchases were recorded on the consolidated statement of cash flow as an outflow of cash associated with financing activities. The remaining $10.5 million of share repurchases were recorded in accounts payable and other current liabilities in the amounts of $3.5 million and $7.0 million, respectively, and will be paid in the first quarter of 2016. The program expired upon completion of our authorized share repurchase program in February 2016. Equity Incentive Plans and Stock-Based Expense In 2007, we adopted the 2007 Equity Incentive Plan (the “2007 Plan”) for the purpose of granting stock options and ZSUs to employees, directors and non-employees. Concurrent with the effectiveness of our initial public offering on December 15, 2011, we adopted the 2011 Equity Incentive Plan (the “2011 Plan”), and all remaining common shares reserved for future grant or issuance under the 2007 Plan were added to the 2011 Plan. The 2011 Plan was adopted for purposes of granting stock options and ZSUs to employees, directors and non-employees. The number of shares of our Class A common stock reserved for future issuance under our 2011 Plan will automatically increase on January 1 of each year, beginning on January 1, 2012, and continuing through and including January 1, 2021, by 4% of the total number of shares of our capital stock outstanding as of December 31 of the preceding calendar year. The following table presents the weighted-average grant date fair value of stock options and the related assumptions used to estimate the fair value in our consolidated financial statements: Year Ended December 31, 2015 2014 2013 Expected term, in years 6 5 7 Risk-free interest rates 1.65 % 1.31 % 2.05 % Expected volatility 53 % 56 % 49 % Dividend yield — — — Weighted-average estimated fair value of options granted during the year $ 1.51 $ 3.44 $ 1.82 We recorded stock-based expense related to grants of employee and consultant stock options, restricted stock and ZSUs in our consolidated statements of operations as follows (in thousands): Year Ended December 31, 2015 2014 2013 Cost of revenue $ 4,547 $ 4,623 $ 468 Research and development 94,548 83,673 61,931 Sales and marketing 7,501 5,927 8,079 General and administrative 24,979 35,010 13,915 Total stock-based expense $ 131,575 $ 129,233 $ 84,393 As of December 31, 2015, total unamortized stock-based compensation relating to ZSUs amounted to $168.3 million over a weighted-average recognition period of 2.4 years. No performance-based ZSUs were granted in connection with our executive compensation plan in the twelve months ended December 31, 2015. In connection with the 2015 employee bonus program, the company recognized $4.4 million of stock-based expense for the twelve months ended December 31, 2015. This amount was accrued based on certain performance criteria and the passage of time and recognized as a liability based on the estimated fair value as of the reporting date. Upon settlement, according to the conditions specified in the agreement, approximately 4.2 million shares would be issued for an estimated total liability of $11.2 million based upon Company’s closing stock price as of December 31, 2015 of $2.68. As of December 31, 2015, total unrecognized stock-based expense of $7.6 million and $20.6 million related to unvested stock options and restricted shares of common stock, respectively, is expected to be recognized over a weighted-average recognition period of approximately 1.25 and 1.13 years, respectively. The following table shows stock option activity for the year ended December 31, 2015 (in thousands, except weighted-average exercise price and remaining contractual term): Outstanding Options Stock Options Weighted- Aggregate Weighted- Balance as of December 31, 2014 39,460 $ 2.22 $ 47,347 6.74 Granted 305 2.99 Forfeited and cancelled (12,510 ) 3.37 Exercised (4,040 ) 0.42 Balance as of December 31, 2015 23,215 $ 1.93 $ 35,949 5.36 As of December 31, 2015 Exercisable options 20,076 $ 1.30 $ 33,252 5.01 Vested and expected to vest 22,825 $ 1.40 $ 35,834 5.31 The aggregate intrinsic value of options exercised during the years ended December 31, 2015, 2014, and 2013 was $9.1 million, $25.1 million, and $85.9 million, respectively. The total grant date fair value of options that vested during the years ended December 31, 2015, 2014, and 2013 was $10.2 million, $6.6 million, and $12.8 million, respectively. The following table shows a summary of ZSU activity for the year ended December 31, 2015 (in thousands, except weighted-average fair value and remaining term): Outstanding ZSUs Shares Weighted- Aggregate Unvested as of December 31, 2014 69,883 $ 3.64 $ 185,889 Granted 51,962 2.70 Vested (29,106 ) 3.71 Forfeited and cancelled (30,303 ) 3.14 Unvested as of December 31, 2015 62,436 $ 3.06 $ 167,328 2011 Employee Stock Purchase Plan Our 2011 Employee Stock Purchase Plan (“2011 ESPP”), was approved by our Board in September 2011 and by our stockholders in November 2011 and amended in August 2012. On December 31, 2015, the maximum number of shares of our Class A common stock that were authorized to be issued under our 2011 ESPP was 73.3 million shares. The number of shares of our Class A common stock reserved for future issuance under our 2011 ESPP will automatically increase on January 1 of each year, beginning on January 1, 2012, and continuing through and including January 1, 2021, by the lesser of 2% of the total number of shares of our capital stock outstanding as of December 31 of the preceding calendar year or 25,000,000 shares. Our 2011 ESPP permits participants to purchase shares of our Class A common stock through payroll deductions up to 15% of their earnings. Unless otherwise determined by the administrator, the purchase price of the shares will be 85% of the lower of the fair market value of our Class A common stock on the first day of an offering or on the date of purchase. The ESPP offers a twelve-month look-back. The ESPP contains an automatic reset feature such that if the fair market value of our Class A common stock has decreased from the original offering date, the offering will automatically terminate and all participants will be re-enrolled in the new, lower-priced offering. Participants may end their participation at any time during an offering and will be refunded their accrued contributions that have not yet been used to purchase shares. Participation ends automatically upon termination of employment. As of December 31, 2015, there were $2.1 million of employee contributions withheld by the Company. In 2015, the Company recognized $2.7 million of stock-based expense related to the 2011 ESPP. Common Stock Reserved for Future Issuance As of December 31, 2015, we had reserved shares of common stock for future issuance as follows (in thousands): December 31, 2015 Stock options outstanding 23,215 ZSUs outstanding 62,436 2011 Equity Incentive Plan 101,834 2011 Employee Stock Purchase Plan 62,868 250,353 Accumulated Other Comprehensive Income (loss) The components of accumulated other comprehensive income, net of taxes, were as follows (in thousands): Foreign Unrealized Available-for- Sale Securities Total Balance as of December 31, 2013 $ (1,259 ) $ 213 $ (1,046 ) Other comprehensive income before reclassifications (27,522 ) (615 ) (28,137 ) Amounts reclassified from accumulated other comprehensive income — 8 8 Net current-period other comprehensive income (27,522 ) (607 ) (28,129 ) Balance as of December 31, 2014 $ (28,781 ) $ (394 ) $ (29,175 ) Other comprehensive income before reclassifications (23,480 ) 307 (23,173 ) Amounts reclassified from accumulated other comprehensive income — (40 ) (40 ) Net current-period other comprehensive income (23,480 ) 267 (23,213 ) Balance as of December 31, 2015 $ (52,261 ) $ (127 ) $ (52,388 ) |
Net Income (Loss) Per Share of
Net Income (Loss) Per Share of Common Stock | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share of Common Stock | 11. Net Income (Loss) Per Share of Common Stock We compute net income (loss) per share of common stock using the two-class method required for participating securities. Prior to the date of the initial public offering, we considered all series of our convertible preferred stock to be participating securities due to their non-cumulative dividend rights. Additionally, we consider shares issued upon the early exercise of options subject to repurchase and unvested restricted shares to be participating securities, because holders of such shares have non-forfeitable dividend rights in the event we declare a dividend for common shares. In accordance with the two-class method, net income allocated to these participating securities, which include participation rights in undistributed net income, is subtracted from net income (loss) to determine total net income (loss) to be allocated to common stockholders. Basic 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 during the period. In computing diluted net income (loss) attributable to common stockholders, 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 or there is no income attributable to common stockholders, we do not include stock options, warrants and unvested ZSUs in our calculation of diluted net income (loss) per share, as the impact of these awards is anti-dilutive. 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): Year Ended December 31, 2015 2014 2013 Class A Class B Class C Class A Class B Class C Class A Class B Class C BASIC: Net income (loss) attributable to common stockholders $ (103,628 ) $ (15,153 ) $ (2,729 ) $ (189,732 ) $ (30,869 ) $ (5,300 ) $ (29,082 ) $ (6,951 ) $ (949 ) Weighted-average common shares outstanding 779,071 113,923 20,517 734,493 119,499 20,517 628,947 150,330 20,517 Basic net income (loss) per share $ (0.13 ) $ (0.13 ) $ (0.13 ) $ (0.26 ) $ (0.26 ) $ (0.26 ) $ (0.05 ) $ (0.05 ) $ (0.05 ) DILUTED: Net income (loss) attributable to common stockholders-basic $ (103,628 ) $ (15,153 ) $ (2,729 ) $ (189,732 ) $ (30,869 ) $ (5,300 ) $ (29,082 ) $ (6,951 ) $ (949 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares (2,729 ) — — (5,300 ) — — (949 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares (15,153 ) — — (30,869 ) — — (6,951 ) — — Net income (loss) attributable to common stockholders-diluted $ (121,510 ) $ (15,153 ) $ (2,729 ) $ (225,900 ) $ (30,869 ) $ (5,300 ) $ (36,982 ) $ (6,951 ) $ (949 ) Weighted-average common shares outstanding-basic 779,071 113,923 20,517 734,493 119,499 20,517 628,947 150,330 20,517 Conversion of Class C to Class A common shares outstanding 20,517 — — 20,517 — — 20,517 — — Conversion of Class B to Class A common shares outstanding 113,923 — — 119,499 — — 150,330 — — Weighted-average common shares outstanding-diluted 913,511 113,923 20,517 874,509 119,499 20,517 799,794 150,330 20,517 Diluted net income (loss) per share $ (0.13 ) $ (0.13 ) $ (0.13 ) $ (0.26 ) $ (0.26 ) $ (0.26 ) $ (0.05 ) $ (0.05 ) $ (0.05 ) The following weighted-average employee 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): Year Ended December 31, 2015 2014 2013 Stock options and employee stock purchase plan 29,412 42,454 61,154 Warrants — — 579 Restricted shares 8,716 12,624 4,203 ZSUs 63,764 59,141 63,794 Total 101,892 114,219 129,730 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Lease Commitments We have entered into operating leases for facilities. As of December 31, 2015, future minimum lease payments related to these leases are as follows (in thousands): Year ending December 31: 2016 $ 4,348 2017 3,154 2018 1,693 2019 1,458 2020 174 2021 and thereafter 44 $ 10,871 Rent expense on operating leases for facilities, excluding data center hosting expense, for the years ended December 31, 2015, 2014 and 2013 totaled $4.5 million, $4.5 million, and $7.3 million, respectively. 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 December 31, 2015, we had not drawn down any amounts under the credit facility and were in compliance with these covenants. 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 December 31, 2015, are as follows (in thousands): Year ending December 31: 2016 $ 19,749 2017 13,441 2018 722 2019 and thereafter 270 $ 34,182 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 hearing 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. On February 11, 2016, the court conducted a final fairness hearing and entered an order granting the motion for final approval of the settlement. The settlement was funded entirely by insurance and will result in the dismissal of all claims against the defendants. Accordingly there will be no impact to Zynga’s financial statements. 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. 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. Plaintiff filed a motion for class certification on July 13, 2015, and, after briefing was completed, the court held a hearing on plaintiff’s motion on November 20, 2015. On December 30, 2015, the court granted plaintiff’s motion for class certification. The court has not yet entered a schedule for further proceedings in this action. 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 and a hearing on the motion was held on November 17, 2015. The court has not yet issued a decision on the motion. 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 | 12 Months Ended |
Dec. 31, 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 Year Ended December 31, 2015 2014 2013 United States $ 506,268 $ 426,906 $ 519,819 All other countries (1) 258,449 263,504 353,447 Total revenue $ 764,717 $ 690,410 $ 873,266 (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 Year Ended December 31, 2015 2014 2013 United States $ 269,721 $ 294,708 $ 345,598 All other countries 3,500 3,211 3,195 Total property and equipment, net $ 273,221 $ 297,919 $ 348,793 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. Related Party Transactions On June 15, 2015, Zynga acquired substantially all of the assets and liabilities of SF Incubator, LLC and super.io, Inc., entities wholly owned by Mark Pincus, pursuant to an asset purchase agreement. The purchase price paid by Zynga pursuant to the asset purchase agreement was $1 plus assumed liabilities of approximately $0.4 million. As of June 30, 2015 the Company recorded a net $0.1 million in stockholder’s equity and $0.1 million in other current liabilities related to this transaction. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events Zindagi Acquisition On January 1, 2015, we acquired Zindagi Games, a provider of social games for $15.0 million in cash and contingent consideration of up to $60 million, payable based on the achievement of certain performance milestones over the next three years. We will record the preliminary purchase price allocation for this business combination in the first quarter of 2016, which will include an estimate of the fair value of the contingent consideration liability. Subsequent changes in the fair value of the contingent consideration will be recorded within operating expenses in our consolidated statement of operations. Completion of Share Repurchase Program From January 1, 2016 to February 2, 2016 we repurchased 42.2 million shares of our Class A common stock at an average price of $2.40, for a total of $101.9 million, exhausting the repurchase plan put in place during the fourth quarter of 2015. In aggregate, 80.2 million shares were repurchased under the plan at an average price of $2.50 for a total of $200 million. Losses Resulting from Winding Down Licensing Agreements At the time of our Q2 2015 Restructuring Plan, we held licensing agreements requiring future contractual commitments for games in categories we decided to exit (“Exited Games”) as part of that plan. During the three months ended June 30, 2015, we recognized a loss of $1.2 million associated with the Exited Games, which consisted of $0.9 million for the write-off of prepaid licenses and $0.3 million in estimated contract reassignment fees, both of which were recorded as restructuring expense within research and development. At the time and as of December 31, 2015, we were engaged in negotiations with third parties to reassign those licensing agreements (the “Negotiations”), resulting in those third parties assuming the future contractual commitments. On or about February 12, 2016, the Negotiations ended unfavorably and resulted in a material change to our original estimates. As a result, we recognized an additional loss of $4.3 million, which consisted of $3.7 million in estimated contract termination fees and $0.6 million for the write-off of prepaid licenses. This loss has been classified as restructuring expense within research and development and included in our consolidated statement of operations for the twelve months ended December 31, 2015. |
Financial Statement Schedules -
Financial Statement Schedules - Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Financial Statement Schedules - Schedule II - Valuation and Qualifying Accounts | 2. Financial Statement Schedules Schedule II: Valuation and Qualifying Accounts Allowance for Doubtful Accounts and Sales Credits Balance at Charged to Write-Offs Balance at Year Ended December 31, 2015 $ — — $ — $ — Year Ended December 31, 2014 $ — — $ — $ — Year Ended December 31, 2013 $ 160 — $ (160 ) $ — All other schedules have been omitted because they are not required, not applicable, or the required information is otherwise included. |
Overview and Summary of Signi24
Overview and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying consolidated financial statements are presented in accordance with United States generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the operations of us and our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in the consolidation. |
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 twelve months ended December 31, 2015 for various games resulted in an increase in revenue and income from operations of $0.5 million and $1.0 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 operations in the twelve months ended December 31, 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 did not impact our reported earnings per share for the three months ended December 31, 2015 and resulted in a $0.01 per share impact on our reported earnings per share for the twelve months ended December 31, 2015. For 2014, changes in our estimated average life of durable virtual goods resulted in a decrease in revenue, income from operations and net income of $1.2 million. These changes in estimates did not impact our reported earnings per share for the twelve months ended December 31, 2014. |
Segments | Segments We have one operating segment with one business activity, developing and monetizing social games. Our Chief Operating Decision Maker (“CODM”), our Chief Executive Officer, manages our operations on a consolidated basis for purposes of allocating resources. When evaluating performance and allocating resources, the CODM reviews financial information presented on a consolidated basis, accompanied by disaggregated bookings information for our games. |
Revenue Recognition | Revenue Recognition We derive revenue from the sale of virtual goods associated with our online games and the sale of advertising. Online Game We operate our games as live services that allow players to play for free. Within these games, players can purchase virtual currency to obtain virtual goods to enhance their game-playing experience. Players can pay for our virtual currency using Facebook local currency payments when playing our games through the Facebook platform. On platforms other than Facebook, players purchase our virtual currency and/or virtual goods through various widely accepted payment methods offered in the games, including PayPal, Apple iTunes accounts, Google Wallet and credit cards. We also sell existing inventory of game cards that are initially recorded as a customer deposit liability which is included in other current liabilities on the consolidated balance sheet, net of fees retained by retailers and distributors. Upon redemption of a game card in one of our games and delivery of the purchased virtual currency to the player, these amounts are reclassified to deferred revenue. Advance payments from customers that are non-refundable and relate to non-cancellable contracts that specify our obligations are recorded to deferred revenue. All other advance payments that do not meet these criteria are recorded as customer deposits. We recognize revenue when all of the following conditions are satisfied: there is persuasive evidence of an arrangement; the service has been provided to the player; the collection of our fees is reasonably assured; and the amount of fees to be paid by the player is fixed or determinable. For purposes of determining when the service has been provided to the player, we have determined that an implied obligation exists to the paying player to continue displaying the purchased virtual goods within the online game over their estimated life or until they are consumed. Accordingly, we categorize our virtual goods as either consumable or durable. The proceeds from the sale of virtual goods are initially recorded in deferred revenue. Consumable virtual goods represent goods that can be consumed by a specific player action. Common characteristics of consumable goods may include virtual goods that are no longer displayed on the player’s game board after a short period of time, do not provide the player any continuing benefit following consumption or often times enable a player to perform an in-game action immediately. For the sale of consumable virtual goods, we recognize revenue as the goods are consumed, which approximates one month. Durable virtual goods represent virtual goods that are accessible to the player over an extended period of time. We recognize revenue from the sale of durable virtual goods ratably over the estimated average playing period of paying players for the applicable game, which represents our best estimate of the average life of durable virtual goods. If we do not have the ability to differentiate revenue attributable to durable virtual goods from consumable virtual goods for a specific game we recognize revenue on the sale of durable and consumable virtual goods for that game ratably over the estimated average period that paying players typically play that game. Prior to October 1, 2009, we did not have the data to determine the consumption dates for our consumable virtual goods or to differentiate revenue attributable to durable virtual goods from consumable virtual goods. Beginning in October 2009, we had sufficient data to separately account for consumable and durable virtual goods in one of our games, thus allowing us to recognize revenue related to consumable goods upon consumption. Since January 2010, we have had this data for substantially all of our web games, thus allowing us to recognize revenue related to consumable goods upon consumption for our web-based games. However, for our standalone mobile games, we do not have the requisite data to separately account for consumable and durable virtual goods and have therefore recorded mobile revenue ratably over the estimated average payer life. We expect that in future periods there will be changes in the mix of durable and consumable virtual goods sold, reduced virtual good sales in some existing games, changes in estimates in average paying payer life and/or changes in our ability to make such estimates. When such changes occur, and in particular if more of our revenue in any period is derived from goods for which revenue is recognized over the estimated average playing period, or that period increases on average, the amount of revenue that we recognize in a future period may be reduced, perhaps significantly. On a quarterly basis, we determine the estimated average playing period for paying players by game beginning at the time of a payer’s first purchase in that game and ending on a date when that paying player is no longer playing the game. To determine when paying players are no longer playing a given game, we analyze monthly cohorts of paying players for that game who made their first in-game payment between six and 18 months prior to the beginning of each quarter and determine whether each player within the cohort is an active or inactive player as of the date of our analysis. To determine which players are inactive, we analyze the dates that each paying player last logged into that game. We determine a paying player to be inactive once they have reached a period of inactivity for which it is probable (defined as at least 80%) that a player will not return to a specific game. For the payers deemed inactive as of our analysis date we analyze the dates they last logged into that game to determine the rate at which inactive players stopped playing. Based on these dates we then project a date at which all paying players for each monthly cohort are expected to cease playing our games. We then average the time periods from first purchase date and the date the last player is expected to cease playing the game for each of the monthly cohorts to determine the total playing period for that game. To determine the estimated average playing period we then divide this total playing period by two. The use of this “average” approach is supported by our observations that paying players typically become inactive at a relatively consistent rate for our games. If future data indicates paying players do not become inactive at a relatively consistent rate, we will modify our calculations accordingly. When a new game is launched and only a limited period of paying player data is available for our analysis, then we also consider other factors, such as the estimated average playing period for other recently launched games with similar characteristics, to determine the estimated average playing period. Future usage patterns may differ from historical usage patterns and therefore the estimated average playing periods may change in the future. We assess the estimated average playing period for paying players and the estimated average life of our virtual goods quarterly. Changes in our estimated average life of durable virtual goods during the twelve months ended December 31, 2015 for various games resulted in an increase in revenue, income from operations and net income of $1.0 million, which is the result of adjusting the remaining recognition period of deferred revenue generated in prior periods at the time of a change in estimate. These changes in estimates did not impact our reported earnings per share for the twelve months ended December 31, 2015. From July 2010 through the third quarter of 2013, Facebook’s proprietary virtual currency, Facebook Credits, was the primary in-game payment method for our games played on the Facebook platform. Under the terms of our agreement with Facebook, Facebook set the price our players pay for Facebook Credits and collected the funds from the sale of Facebook Credits. Facebook’s stated face value of a Facebook Credit was $0.10. For each Facebook Credit purchased by our players and redeemed in our games, Facebook remitted to us $0.07, which is the amount we recognized as revenue. Accordingly, we recognized revenue net of the amounts retained by Facebook related to Facebook Credits transactions because we did not set the pricing of Facebook Credits sold to the players of our games on Facebook. In July 2013, Facebook began to transition payments made on the Facebook platform from Facebook Credits to Facebook’s local currency-based payments program. This transition was completed in the fourth quarter of 2013. Under the terms of our agreement, Facebook remits to us 70% of the price we request to be charged to the game player for each transaction. We recognize revenue net of the amounts retained by Facebook related to Facebook local currency-based payments because Facebook may choose to alter our recommended price, for example by offering a discount or other incentives to players playing on their platform. Additionally, we do not receive information from Facebook indicating the amount of such discounts offered to our paying players or regarding the actual cash paid by our players to Facebook. Accordingly, we are unable to determine the gross amount paid by our players to Facebook. For revenue earned through certain mobile platforms, including Apple iOS and Google Android, we recognize online game revenue based on the gross amount paid by the player because we are the primary obligor and we have the contractual right to determine the price to be paid by the player. We record the related platform and payment processing fees as cost of revenue in the period incurred. We estimate chargebacks from our third-party web and mobile payment processors to account for potential future chargebacks based on historical data and record such amounts as a reduction of revenue. Advertising We have contractual relationships with agencies, advertising brokers and certain advertisers for advertisements within our games. We generally report our advertising revenue net of amounts retained by advertising networks, agencies, and brokers because we are not the primary obligor in our arrangements, we do not set the pricing, and we do not establish or maintain the relationship with the advertiser. Certain advertising arrangements that are directly between us and end advertisers are recognized gross equal to the price paid to us by the end advertiser since we are the primary obligor and we determine the price. We recognize advertising revenue for branded virtual goods and sponsorships, engagement advertisements and offers, mobile advertisements and other advertisements as advertisements are delivered to customers as long as evidence of the arrangement exists (executed contract), the price is fixed or determinable, and we have assessed collectability as reasonably assured. Certain branded in-game sponsorships that involve virtual goods are deferred and recognized over the estimated life of the branded virtual good or as consumed, similar to online game revenue. Price is determined to be fixed and determinable when there is a fixed price in the applicable evidence of the arrangement, which may include a master contract, insertion order, or a third party statement of activity. For branded virtual goods and sponsorships, we determine the delivery criteria has been met based on delivery information primarily from third parties. For engagement advertisements and offers, mobile advertisements, and other advertisements, delivery occurs when the advertisement has been displayed or the offer has been completed by the customer, as evidenced by third party verification reports supporting the number of advertisements displayed or offers completed. Multiple-element Arrangements We allocate arrangement consideration in multiple-deliverable revenue arrangements at the inception of an arrangement to all deliverables based on the relative selling price method, generally based on our best estimate of selling price. We offer certain promotions to customers from time to time that include the sale of in-game virtual currency via the sale of a game card and also other deliverables such as a limited edition in-game virtual good. |
Cost of Revenue | Cost of Revenue Amounts recorded as cost of revenue relate to direct expenses incurred in order to generate online game revenue. Such costs are recorded as incurred. Our cost of revenue consists primarily of hosting and data center costs related to operating our games, including depreciation, consulting costs primarily related to third-party provisioning of customer support services, payment processing fees, licensing fees, salaries, benefits and stock-based expense for our customer support and infrastructure teams. Cost of revenue also includes amortization expense related to purchased technology of $23.9 million, $21.4 million and $11.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of cash on hand, money market funds, commercial paper, corporate bonds and U.S. government-issued obligations with maturities of 90 days or less from the date of purchase. |
Marketable Securities and Non-Marketable Securities | Marketable Securities and Non-Marketable Securities Marketable securities consist of U.S. government-issued obligations and corporate debt securities. Management determines the appropriate classification of marketable securities at the time of purchase and evaluates such determination at each balance sheet date. The fair value of marketable securities is determined as the exit price in the principal market in which we would transact. Based on our intentions regarding our marketable securities, all marketable securities are classified as available-for-sale and are carried at fair value with unrealized gains and losses recorded as a separate component of other comprehensive income, net of income taxes. Realized gains and losses are determined using the specific-identification method and are reflected as a component of other income (expense), net in the consolidated statements of operations when they are realized. When we determine that a decline in fair value is other than temporary, the cost basis of the individual security is written down to the fair value as a new cost basis and the amount of the write-down is accounted for as a realized loss in other income (expense), net. The new cost basis will not be adjusted for subsequent recoveries in fair value. Determination of whether declines in fair value are other than temporary requires judgment regarding the amount and timing of recovery. No such impairments of marketable securities have been recorded in any of the periods presented. For non-marketable securities in which we exercise significant influence on the equity to which these non-marketable securities relate, we apply the equity method of accounting. Our non-marketable securities are subject to periodic impairment reviews. In the first quarter of 2015, we sold our only equity method investment and recorded a $6.2 million gain in other income in our consolidated statement of operations. As of December 31, 2015, we did not have any other equity method investments. |
Restricted Cash | Restricted Cash Restricted cash consists of collateral for royalty agreements and funds held in escrow in accordance with the terms of certain of our business acquisition agreements. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. We review accounts receivable regularly and make estimates for the allowance for doubtful accounts when there is doubt as to our ability to collect individual balances. In evaluating our ability to collect outstanding receivable balances, we consider many factors, including the age of the balance, the customer’s payment history and current creditworthiness, and current economic trends. Bad debts are written off after all collection efforts have ceased. We do not require collateral from our customers. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the estimated useful lives of the improvements or the lease term. |
Business Combinations | Business Combinations We account for acquisitions of entities that include inputs and processes and have the ability to create outputs as business combinations. We allocate the purchase price of the acquisition, which includes the estimated acquisition date fair value of contingent consideration, to the tangible assets, liabilities, and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. During the measurement period, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. After the measurement period, which could be up to one year after the transaction date, subsequent adjustments are recorded to our consolidated statements of operations. We record changes in the fair value of contingent consideration liabilities within operating expenses in our consolidated statement of operations each reporting period. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Goodwill and indefinite-lived intangible assets are carried at cost and are evaluated annually for impairment, or more frequently if circumstances exist that indicate that impairment may exist. When conducting our annual goodwill impairment assessment, we perform a quantitative evaluation of whether goodwill is impaired using the two-step impairment test. The first step is comparing the fair value of our reporting unit to its carrying value. We consider the enterprise to be the reporting unit for this analysis. If step one indicates that impairment potentially exists, the second step is performed to measure the amount of impairment, if any. We record the amount by which the carrying value of the goodwill exceeds its implied fair value, if any, as impairment. We test recoverability of indefinite-lived intangible assets using a qualitative approach on whether it is more likely than not that the fair value of the intangible asset exceeds its carrying value. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. |
Other Intangible Assets | Other Intangible Assets Other intangible assets are carried at cost less accumulated amortization. Amortization is recorded over the estimated useful lives of the assets, generally 12 to 60 months. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, including other intangible assets (excluding indefinite-lived intangible assets), are reviewed for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. If such circumstances are present, we assess the recoverability of the long-lived assets by comparing the carrying value to the undiscounted future cash flows associated with the related assets. If the future net undiscounted cash flows are less than the carrying value of the assets, the assets are considered impaired and an expense, equal to the amount required to reduce the carrying value of the assets to the estimated fair value, is recorded as impairment of intangible assets in the consolidated statements of operations. Significant judgment is required to estimate the amount and timing of future cash flows and the relative risk of achieving those cash flows. Assumptions and estimates about future values and remaining useful lives are complex and often subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in our business strategy and our internal forecasts. For example, if our future operating results do not meet current forecasts, we may be required to record future impairment charges for acquired intangible assets. Impairment charges could materially decrease our future net income and result in lower asset values on our balance sheet. There were no impairment charges in 2015 and 2014. In 2013, we recorded a $10.2 million impairment charge related to certain games associated with intangible assets previously acquired through various business combinations. |
Stock-Based Expense | Stock-Based Expense Prior to our IPO in December 2011, we granted ZSUs to our employees that generally vest upon the satisfaction of both a service-based condition of up to four years and a liquidity condition, the latter of which was satisfied in connection with our IPO in December 2011. Because the liquidity condition was not satisfied until our IPO, in prior periods, we had not recorded any expense relating to the granting of our ZSUs. In the fourth quarter of 2011, after the IPO, we recognized $510 million of stock-based expense associated with ZSUs that vested in connection with our IPO. This expense is in addition to the stock-based expense we recognize related to outstanding equity awards other than ZSUs as well as expenses related to ZSUs or other equity awards that may be granted in the future. For ZSUs granted prior to the IPO, and for awards subject to performance conditions, we recognize stock-based expense based on grant date fair value using the accelerated attribution method in which compensation cost for each vesting tranche in an award is recognized ratably from the service inception date to the vesting date for that tranche. For ZSUs granted after the IPO, which are only subject to a service condition, we recognize stock-based expense based on grant date fair value on a ratable basis over the requisite service period for the entire award. We estimate the fair value of stock options using the Black-Scholes option-pricing model. This model requires the use of the following assumptions: expected volatility of our Class A common stock, which is based on our own calculated 3 year historical rate; expected life of the option award, which we elected to calculate using the simplified method; expected dividend yield, which is 0%, as we have not paid and do not have any plans to pay dividends on our common stock; and the risk-free interest rate, which is based on the U.S. Treasury yield curve in effect at the time of grant with maturities equal to the grant’s expected life. We changed the basis of estimating our expected volatility in the fourth quarter of 2015 from using peer group data in the industry in which we do business to using our own calculated rate as we now have sufficient historical data (3 years of historical trading activity) that we believe provides a reasonable basis for our estimate. Option grants generally vest over four years, with 25% vesting after one year and the remainder vesting monthly thereafter over 36 months. The options have a contractual term of 10 years. If any of the assumptions used in the Black-Scholes model changes significantly, stock-based expense for future awards may differ materially compared with the awards granted previously. We record stock-based expense for stock options on a ratable basis over the vesting term. For stock options issued to non-employees, including consultants, we record expense related to stock options equal to the fair value of the options calculated using the Black-Scholes model over the service performance period. The fair value of options granted to non-employees is remeasured over the vesting period and recognized as an expense over the period the services are received. Stock-based expense is recorded net of estimated forfeitures so that expense is recorded for only those stock-based awards that we expect to vest. We estimate forfeitures based on our historical forfeiture of equity awards adjusted to reflect future changes in facts and circumstances, if any. We will revise our estimated forfeiture rate if actual forfeitures differ from our initial estimates. |
Income Taxes | Income Taxes We account for income taxes using an asset and liability approach, which requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns. The measurement of current and deferred tax assets and liabilities is based on provisions of enacted tax laws; the effects of future changes in tax laws or rates are not anticipated. If necessary, the measurement of deferred tax assets is reduced by the amount of any tax benefits that are not expected to be realized based on available evidence. We account for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We recognize interest and penalties, if any, related to unrecognized tax benefits in the provision for income taxes. |
Foreign Currency Transactions | Foreign Currency Transactions Generally, the functional currency of our international subsidiaries is the U.S. dollar or the local currency that the international subsidiary operates in. For these subsidiaries where the U.S. dollar is not the functional currency, foreign currency denominated monetary assets and liabilities are remeasured into U.S. dollars at current exchange rates and foreign currency denominated nonmonetary assets and liabilities are remeasured into U.S. dollars at historical exchange rates. Gains or losses from foreign currency remeasurement and settlements are included in other income (expense), net in the consolidated statements of operations. For foreign subsidiaries where the functional currency is the local currency, we use the period-end exchange rates to translate assets and liabilities, and the average exchange rates to translate revenues and expenses into U.S. dollars. We record translation gains and losses in accumulated other comprehensive income (loss) as a component of stockholders’ equity. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers Financial instruments, which potentially expose us to concentrations of credit risk, consist primarily of cash and cash equivalents, short-term and long-term marketable securities, and accounts receivable. Substantially all of our cash, cash equivalents and short-term marketable securities are maintained with two financial institutions with high credit standings. We perform periodic evaluations of the relative credit standing of these institutions. Accounts receivable are unsecured and represent amounts due to us based on contractual obligations where a signed and executed contract or click-through agreement exists. In cases where we are aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, we record a specific allowance as a reduction to the accounts receivable balance to reduce it to its net realizable value. Facebook, Apple, and Google are significant distribution, marketing, promotion and payment platforms for our social games. A significant portion of our 2015, 2014 and 2013 revenue was generated from players who accessed our games through these platforms. As of December 31, 2015 and December 31, 2014, 17% and 22% of our accounts receivable, respectively, were amounts owed to us by Facebook. Additionally, as of December 31, 2015 and December 31, 2014, 17% and 23% of our accounts receivable, respectively, were amounts owed to us by Apple and 14% and 8% of our accounts receivable, respectively, were amounts owed to us by Google. |
Advertising Expense | Advertising Expense Costs for advertising are expensed as incurred. Advertising costs, which are included in sales and marketing expense, primarily consisting of player acquisition costs, totaled $128.9 million, $101.7 million and $60.6 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers Revenue Recognition (Topic 605) In September 2015, the FASB issued an ASU 2015-16, “ Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments In November 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-17, “ Balance Sheet Classification of Deferred Taxes |
Fair Value of Financial Instruments | Cash equivalents and short-term and long-term marketable securities, consisting of money market funds, U.S. government and government agency debt 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. During the periods ending December 31, 2015 and 2014 we recorded the change in estimated fair value of the contingent consideration liability as an expense of approximately $6.1 million and $32.7 million, respectively within research and development expense in our consolidated statements of operations. 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 was $58.8 million, which included $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. |
Cash and Investments (Tables)
Cash and Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Investments | Cash and investments consist of the following (in thousands): December 31, 2015 December 31, 2014 Cash and cash equivalents: Cash $ 162,495 $ 89,708 Money market funds 362,587 41,595 Commercial paper 160,151 — Corporate bonds 16,995 — US government and government agency debt securities 39,989 — Total cash and cash equivalents $ 742,217 $ 131,303 Marketable securities: U.S. government and government agency debt securities $ 144,986 $ 404,982 Corporate debt securities 100,047 611,624 Total $ 245,033 $ 1,016,606 |
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): December 31, 2015 Amortized Gross Gross Aggregate U.S. government and government agency debt securities $ 145,066 $ — $ (80 ) $ 144,986 Corporate debt securities 100,093 12 (58 ) 100,047 $ 245,159 $ 12 $ (138 ) $ 245,033 December 31, 2014 Amortized Gross Gross Aggregate U.S. government and government agency debt securities $ 405,049 $ 68 $ (135 ) $ 404,982 Corporate debt securities 611,950 39 (365 ) 611,624 $ 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): December 31, 2015 December 31, 2014 Due within one year $ 245,033 $ 785,221 After one year through three years — 231,385 Total $ 245,033 $ 1,016,606 |
Schedule of Unrealized Losses on Marketable Securities | Changes in market interest rates and bond yields cause certain of our investments to fall below their cost basis, resulting in unrealized losses on marketable securities. As of December 31, 2015, we had unrealized losses of $0.1 million related to marketable securities that had a fair value of $199.1 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. December 31, 2015 December 31, 2014 Fair Value Unrealized loss Fair Value Unrealized loss U.S. government and government agency debt securities $ 137,485 $ (80 ) $ 222,723 $ (135 ) Corporate debt securities 61,622 (58 ) 398,777 (365 ) Total $ 199,107 $ (138 ) $ 621,500 $ (500 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets Measured on Recurring Basis | The composition of our financial assets and liabilities among the three Levels of the fair value hierarchy are as follows (in thousands): December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 362,587 $ — $ — $ 362,587 U.S. government and government agency debt securities — 184,975 — 184,975 Corporate debt securities (1) — 277,193 — 277,193 Total $ 362,587 $ 462,168 $ — $ 824,755 Liabilities Contingent consideration $ — $ — $ 18,490 $ 18,490 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) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consist of the following (in thousands): December 31, December 31, 2015 2014 Computer equipment $ 36,373 $ 141,946 Software 30,950 31,778 Land 89,130 89,130 Building 195,372 194,574 Furniture and fixtures 10,348 10,616 Leasehold improvements 7,748 9,694 369,921 477,738 Less accumulated depreciation (96,700 ) (179,819 ) Total property and equipment, net $ 273,221 $ 297,919 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value of Purchase Consideration | The acquisition date fair value of the purchase consideration was $522.2 million, which included the following (in thousands): Fair Value of Cash $ 391,000 Common stock (28,178,201 shares) 130,465 Fair value of stock options assumed 693 Total $ 522,158 |
Pro Forma Financial Information | The pro forma financial information was as follows (unaudited, in thousands): 12 Months Ended 2014 2013 Total revenues $ 698,608 $ 912,880 Net loss (233,036 ) (96,048 ) |
Rising Tide Games [Member] | |
Schedule of Purchase Price Allocation | The following table summarizes the acquisition 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 |
NaturalMotion, Ltd. [Member] | |
Schedule of Purchase Price Allocation | The following table summarizes the final acquisition date fair value of net tangible assets acquired and liabilities assumed from NaturalMotion (in thousands, unaudited): Estimated Fair Estimated Useful Life Tangible net assets (liabilities) assumed (1) $ 1,259 N/A Intangible assets Developed technology 59,900 3 years Branding and trade names 15,000 4.6 years Goodwill (1) 448,821 N/A Total $ 524,980 (1) Includes the impact of adjustments to the purchase price allocation in 2014 ($3.9 million) and 2015 ($2.8 million) resulting from changes in net assets (liabilities) acquired and other adjustments pursuant to our business combinations policy and recorded within the measurement period. |
Schedule of Revenues and Earnings of Acquired Entity Post Acquisition Period | The amounts of revenue and net loss of NaturalMotion included in the Company’s condensed consolidated statement of operations for the post acquisition period from February 12, 2014 to December 31, 2014 are as follows (unaudited, in thousands): February 12, 2014 to Total revenues $ 26,800 Net loss 74,891 |
Goodwill and Other Intangible29
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying value of goodwill from December 31, 2013 to December 31, 2015 are as follows (in thousands): Goodwill—December 31, 2013 $ 227,989 Additions 450,582 Foreign currency translation adjustments (1) (23,994 ) Goodwill adjustments (2) (3,799 ) Goodwill—December 31, 2014 650,778 Additions 25,050 Foreign currency translation adjustments (1) (20,816 ) Goodwill adjustments (2) 2,659 Goodwill—December 31, 2015 $ 657,671 (1) The decreases are 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 and other adjustments, pursuant to our business combinations policy. |
Acquisition-Related Intangible Assets | The details of our acquisition-related intangible assets are as follows (in thousands): December 31, 2015 Gross Carrying Accumulated Net Book Value Developed technology $ 174,970 $ (118,940 ) $ 56,030 Trademarks, branding and domain names 16,290 (9,210 ) 7,080 Acquired lease intangibles 5,708 (4,802 ) 906 Total $ 196,968 $ (132,952 ) $ 64,016 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 December 31, 2015, future amortization expense related to the intangible assets is expected to be recognized as shown below (in thousands): Year ending December 31: 2016 $ 29,084 2017 11,203 2018 7,634 2019 and thereafter 9,975 Total $ 57,896 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income (loss) before income tax expense consists of the following for the periods shown below (in thousands): Year Ended December 31, 2015 2014 2013 United States $ (83,432 ) $ (132,281 ) $ (56,215 ) International (46,750 ) (100,947 ) (8,654 ) Total $ (130,182 ) $ (233,228 ) $ (64,869 ) |
Components of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of the following for the periods shown below (in thousands): Year Ended December 31, 2015 2014 2013 Current: Federal $ (30 ) $ (132 ) $ (15,712 ) State (2,863 ) (16 ) (134 ) Foreign 3,817 2,777 3,206 Total current tax expense 924 2,629 (12,640 ) Deferred: Federal (8,818 ) (6,888 ) (14,357 ) State (504 ) (353 ) (86 ) Foreign (274 ) (2,715 ) (804 ) Total deferred tax expense (benefit) (9,596 ) (9,956 ) (15,247 ) Provision for (benefit from) income taxes $ (8,672 ) $ (7,327 ) $ (27,887 ) |
Schedule of Effective Income Tax Reconciliation | The reconciliation of federal statutory income tax provision (benefit) to our effective income tax provision is as follows (in thousands): Year Ended December 31, 2015 2014 2013 Expected benefit at U.S. federal statutory rate $ (45,564 ) $ (81,630 ) $ (22,704 ) State income taxes—net of federal benefit (2,863 ) (2,681 ) (1,503 ) Income taxed at foreign rates 18,406 33,417 4,024 Equity-based compensation 1,125 2,865 6,741 Tax credits — — (12,389 ) Tax reserve for uncertain tax positions 1,827 19 2,224 Change in valuation allowance 17,526 37,202 14,705 Change in earnings mix — — (16,306 ) Impact of change in tax rates (18 ) 25 (1,530 ) Acquisition costs 650 2,981 (1,480 ) Other 239 475 331 $ (8,672 ) $ (7,327 ) $ (27,887 ) |
Schedule of Deferred Tax Assets (Liabilities) | Our deferred tax assets (liabilities) are as follows (in thousands): Year Ended December 31, 2015 2014 Deferred tax assets: Tax credit carryforwards $ 47,978 $ 40,501 Net operating loss carryforwards 44,551 30,381 Equity based compensation 24,930 28,263 Acquired intangible assets 13,524 — Accrued expenses 11,593 19,406 Charitable contributions 3,930 2,047 State taxes 2,321 2,933 Other accrued compensation 1,664 6,664 Deferred revenue 1,309 1,129 Other 434 1,956 Deferred rent — 2,186 Valuation allowance (151,808 ) (127,917 ) Net deferred tax assets $ 426 $ 7,549 Deferred tax liabilities: Acquired intangible assets $ — $ (1,654 ) Deferred rent (675 ) — Depreciation (5,777 ) (8,453 ) Net deferred tax liabilities (6,452 ) (10,107 ) Net deferred taxes $ (6,026 ) $ (2,558 ) |
Summary of Net Operating Loss and Tax Credit Carryforwards | Net operating loss and tax credit carryforwards as of December 31, 2015 are as follows (in thousands): Amount Expiration years Net operating losses, federal $ 372,373 2027 - 2035 Net operating losses, state 340,888 2017 - 2035 Tax credit, federal 82,111 2030 - 2035 Tax credits, state 72,615 2019 - indefinite Net operating losses, foreign 44,398 2033 - indefinite Tax credits, foreign 443 indefinite |
Summary of Income Tax Contingencies | The following table reflects changes in the gross unrecognized tax benefits (in thousands): December 31, 2012 $ 98,721 Additions based on tax positions related to 2013 16,414 Additions for tax positions of prior years 18,356 December 31, 2013 $ 133,491 Additions based on tax positions related to 2014 7,738 Additions for tax positions of prior years 171 Reductions for tax positions of prior years (511 ) December 31, 2014 $ 140,889 Additions based on tax positions related to 2015 8,876 Additions for tax positions of prior years 82 Reductions for tax positions of prior years (2,817 ) Decreases related to settlements of prior year tax positions (4,185 ) December 31, 2015 $ (142,845 ) |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): December 31, December 31, Accrued accounts payable $ 31,700 $ 17,542 Accrued compensation liability 16,278 26,113 Accrued restructuring liability 9,859 7,214 Other current liabilities 19,854 20,955 Accrued escrow for acquisitions — 47,906 Contingent consideration liability — 44,420 Total other current liabilities $ 77,691 $ 164,150 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 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 September 30, 2015 and the three and twelve months ended December 31, 2015 related to the Q2 2015 restructuring plan (in thousands): Three Months Ended Twelve Months June 30, September 30, December 31, Restructuring liability—beginning of period $ — $ 1,860 $ 491 $ — Restructuring expense and adjustments 12,282 367 21,200 33,849 Cash payments (10,422 ) (1,736 ) 4,715 (1) (7,443 ) Restructuring liability (Q2 2015 Plan)—end of period $ 1,860 $ 491 $ 26,406 $ 26,406 (1) Cash payments in the fourth quarter of 2015 include adjustments to restructuring expense that do not have an effect on the restructuring liability. These adjustments consist primarily of deferred items recognized losses on the disposal of property and equipment and write-offs of prepaid licenses. The following table presents the activity for the three months ended March 31, 2015 and June 30, 2015, and the twelve months ended December 31, 2015 related to the Q1 2015 Restructuring plan (in thousands): Three Months Ended Twelve Months March 31, June 30, 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 December 31, 2015. The following table presents the activity for the three months ended March 31, 2015, June 30, 2015, September 30, 2015 and the three and twelve months ended December 31, 2015 related to the Q1 2014 restructuring plan (in thousands): Three Months Ended Twelve March 31, June 30, September 30, December 31, Restructuring liability—beginning of period $ 10,009 $ 8,082 $ 6,663 $ 5,205 $ 10,009 Restructuring expense and adjustments 189 30 33 (1,466 ) (2) (1,214 ) Cash payments (2,116 ) (1,449 ) (1,491 ) (1,449 ) (6,505 ) Restructuring liability (Q1 2014 Plan)—end of period $ 8,082 $ 6,663 $ 5,205 $ 2,290 $ 2,290 (2) A $1.5 million adjustment was recorded in the fourth quarter of 2015 to reduce our restructuring liability as a result of executing a sublease agreement with a new tenant in a data center facility we had previously vacated in the first quarter of 2014. The following table presents the activity for the three months ended March 31, 2015, June 30, 2015, September 30, 2015 and the three and twelve months ended December 31, 2015 related to all other remaining historical restructuring plans from prior years (in thousands): Three Months Ended Twelve Months March 31, June 30, September 30, December 31, Restructuring liability—beginning of period $ 2,857 $ 1,957 $ 1,933 $ 784 $ 2,857 Restructuring expense and adjustments 31 — 19 8 58 Cash payments (931 ) (24 ) (1,168 ) (460 ) (2,583 ) Restructuring liability (2013 Plan)—end of period $ 1,957 $ 1,933 $ 784 $ 332 $ 332 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Weighted-Average Grant Date Fair Value of Stock Options and Related Assumptions | The following table presents the weighted-average grant date fair value of stock options and the related assumptions used to estimate the fair value in our consolidated financial statements: Year Ended December 31, 2015 2014 2013 Expected term, in years 6 5 7 Risk-free interest rates 1.65 % 1.31 % 2.05 % Expected volatility 53 % 56 % 49 % Dividend yield — — — Weighted-average estimated fair value of options granted during the year $ 1.51 $ 3.44 $ 1.82 |
Stock-Based Expense Related to Grants of Employee and Consultant Stock Options, Restricted Stock and ZSUs | We recorded stock-based expense related to grants of employee and consultant stock options, restricted stock and ZSUs in our consolidated statements of operations as follows (in thousands): Year Ended December 31, 2015 2014 2013 Cost of revenue $ 4,547 $ 4,623 $ 468 Research and development 94,548 83,673 61,931 Sales and marketing 7,501 5,927 8,079 General and administrative 24,979 35,010 13,915 Total stock-based expense $ 131,575 $ 129,233 $ 84,393 |
Schedule of Share Based Compensation Stock Option Activity | The following table shows stock option activity for the year ended December 31, 2015 (in thousands, except weighted-average exercise price and remaining contractual term): Outstanding Options Stock Options Weighted- Aggregate Weighted- Balance as of December 31, 2014 39,460 $ 2.22 $ 47,347 6.74 Granted 305 2.99 Forfeited and cancelled (12,510 ) 3.37 Exercised (4,040 ) 0.42 Balance as of December 31, 2015 23,215 $ 1.93 $ 35,949 5.36 As of December 31, 2015 Exercisable options 20,076 $ 1.30 $ 33,252 5.01 Vested and expected to vest 22,825 $ 1.40 $ 35,834 5.31 |
Schedule of Share Based Compensation Restricted Stock Units Award Activity | The following table shows a summary of ZSU activity for the year ended December 31, 2015 (in thousands, except weighted-average fair value and remaining term): Outstanding ZSUs Shares Weighted- Aggregate Unvested as of December 31, 2014 69,883 $ 3.64 $ 185,889 Granted 51,962 2.70 Vested (29,106 ) 3.71 Forfeited and cancelled (30,303 ) 3.14 Unvested as of December 31, 2015 62,436 $ 3.06 $ 167,328 |
Common Stock Reserved for Future Issuance | As of December 31, 2015, we had reserved shares of common stock for future issuance as follows (in thousands): December 31, 2015 Stock options outstanding 23,215 ZSUs outstanding 62,436 2011 Equity Incentive Plan 101,834 2011 Employee Stock Purchase Plan 62,868 250,353 |
Schedule of Accumulated Other Comprehensive Income Loss | The components of accumulated other comprehensive income, net of taxes, were as follows (in thousands): Foreign Unrealized Available-for- Sale Securities Total Balance as of December 31, 2013 $ (1,259 ) $ 213 $ (1,046 ) Other comprehensive income before reclassifications (27,522 ) (615 ) (28,137 ) Amounts reclassified from accumulated other comprehensive income — 8 8 Net current-period other comprehensive income (27,522 ) (607 ) (28,129 ) Balance as of December 31, 2014 $ (28,781 ) $ (394 ) $ (29,175 ) Other comprehensive income before reclassifications (23,480 ) 307 (23,173 ) Amounts reclassified from accumulated other comprehensive income — (40 ) (40 ) Net current-period other comprehensive income (23,480 ) 267 (23,213 ) Balance as of December 31, 2015 $ (52,261 ) $ (127 ) $ (52,388 ) |
Net Income (Loss) Per Share o34
Net Income (Loss) Per Share of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share of Common Stock | The following table sets forth the computation of basic and diluted net income (loss) per share of common stock (in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Class A Class B Class C Class A Class B Class C Class A Class B Class C BASIC: Net income (loss) attributable to common stockholders $ (103,628 ) $ (15,153 ) $ (2,729 ) $ (189,732 ) $ (30,869 ) $ (5,300 ) $ (29,082 ) $ (6,951 ) $ (949 ) Weighted-average common shares outstanding 779,071 113,923 20,517 734,493 119,499 20,517 628,947 150,330 20,517 Basic net income (loss) per share $ (0.13 ) $ (0.13 ) $ (0.13 ) $ (0.26 ) $ (0.26 ) $ (0.26 ) $ (0.05 ) $ (0.05 ) $ (0.05 ) DILUTED: Net income (loss) attributable to common stockholders-basic $ (103,628 ) $ (15,153 ) $ (2,729 ) $ (189,732 ) $ (30,869 ) $ (5,300 ) $ (29,082 ) $ (6,951 ) $ (949 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares (2,729 ) — — (5,300 ) — — (949 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares (15,153 ) — — (30,869 ) — — (6,951 ) — — Net income (loss) attributable to common stockholders-diluted $ (121,510 ) $ (15,153 ) $ (2,729 ) $ (225,900 ) $ (30,869 ) $ (5,300 ) $ (36,982 ) $ (6,951 ) $ (949 ) Weighted-average common shares outstanding-basic 779,071 113,923 20,517 734,493 119,499 20,517 628,947 150,330 20,517 Conversion of Class C to Class A common shares outstanding 20,517 — — 20,517 — — 20,517 — — Conversion of Class B to Class A common shares outstanding 113,923 — — 119,499 — — 150,330 — — Weighted-average common shares outstanding-diluted 913,511 113,923 20,517 874,509 119,499 20,517 799,794 150,330 20,517 Diluted net income (loss) per share $ (0.13 ) $ (0.13 ) $ (0.13 ) $ (0.26 ) $ (0.26 ) $ (0.26 ) $ (0.05 ) $ (0.05 ) $ (0.05 ) |
Weighted Average Employee Equity Awards | The following weighted-average employee 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): Year Ended December 31, 2015 2014 2013 Stock options and employee stock purchase plan 29,412 42,454 61,154 Warrants — — 579 Restricted shares 8,716 12,624 4,203 ZSUs 63,764 59,141 63,794 Total 101,892 114,219 129,730 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Operating Leases | As of December 31, 2015, future minimum lease payments related to these leases are as follows (in thousands): Year ending December 31: 2016 $ 4,348 2017 3,154 2018 1,693 2019 1,458 2020 174 2021 and thereafter 44 $ 10,871 |
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 December 31, 2015, are as follows (in thousands): Year ending December 31: 2016 $ 19,749 2017 13,441 2018 722 2019 and thereafter 270 $ 34,182 |
Geographical Information (Table
Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Revenue by Geographical Area | The following represents our revenue based on the geographic location of our players (in thousands): Revenue Year Ended December 31, 2015 2014 2013 United States $ 506,268 $ 426,906 $ 519,819 All other countries (1) 258,449 263,504 353,447 Total revenue $ 764,717 $ 690,410 $ 873,266 (1) No country exceeded 10% of our total revenue for any periods presented. |
Property and Equipment, Net | Property and equipment, net Year Ended December 31, 2015 2014 2013 United States $ 269,721 $ 294,708 $ 345,598 All other countries 3,500 3,211 3,195 Total property and equipment, net $ 273,221 $ 297,919 $ 348,793 |
Overview and Summary of Signi37
Overview and Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2015USD ($)SegmentBusinessFinancial_Institution$ / shares$ / Credit | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||
Initial offering period | December 2,011 | |||||
Increase in revenue and income from operations | $ 500,000 | $ 1,000,000 | ||||
Revenue and income from operations | $ 9,900,000 | |||||
Impact on reported earnings per share | $ / shares | $ 0.01 | |||||
Decrease in revenue and income from operations | $ 1,200,000 | |||||
Operating segment | Segment | 1 | |||||
Number of business activities performed | Business | 1 | |||||
Increase in revenue | $ 1,000,000 | |||||
Amortization of intangible assets | $ 27,400,000 | 24,600,000 | $ 12,200,000 | |||
Cash equivalents maturity period | 90 days | |||||
Impairments of marketable securities | $ 0 | |||||
Equity method investment | $ 0 | $ 0 | ||||
Impairment of intangible assets | 10,217,000 | |||||
Minimum service period required for employees to vest granted shares | 4 years | |||||
Stock based compensation expense recognized | $ 131,575,000 | 129,233,000 | 84,393,000 | |||
Option grants vesting period | 4 years | |||||
Period over which stock options vest on monthly basis | 36 months | |||||
Number of financial institutions in which cash, cash equivalents and securities held | Financial_Institution | 2 | |||||
Advertising expense | $ 128,900,000 | $ 101,700,000 | 60,600,000 | |||
Share-based Compensation Award, Tranche One [Member] | ||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||
Option grants vesting percentage | 25.00% | |||||
Minimum [Member] | ||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||
Probability of an inactive player not to return to a specific game percentage | 80.00% | |||||
Estimated useful lives of intangible assets | 12 months | |||||
Maximum [Member] | ||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||
Estimated useful lives of intangible assets | 60 months | |||||
Facebook Credits [Member] | ||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||
Face value per in-game credit | $ / Credit | 0.10 | |||||
Revenue recognized per in-game credit | $ / Credit | 0.07 | |||||
Percentage of revenue recognized price | 70.00% | |||||
Facebook [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||
Entity wide accounts receivables major customer percentage | 17.00% | 22.00% | ||||
Apple [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||
Entity wide accounts receivables major customer percentage | 17.00% | 23.00% | ||||
Google [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||
Entity wide accounts receivables major customer percentage | 14.00% | 8.00% | ||||
Zynga Stock Options [Member] | ||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||
Contractual term | 10 years | |||||
Other Income [Member] | ||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||
Gain on sale of equity method investment | $ 6,200,000 | |||||
IPO [Member] | Restricted Stock Units (ZSUs) [Member] | ||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||
Stock based compensation expense recognized | $ 510,000,000 | |||||
Purchased Technology [Member] | ||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||
Amortization of intangible assets | $ 23,900,000 | $ 21,400,000 | 11,300,000 | |||
Acquired Intangible Assets [Member] | ||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||
Impairment of intangible assets | $ 0 | $ 0 | $ 10,200,000 |
Cash and Investments - Schedule
Cash and Investments - Schedule of Cash and Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 742,217 | $ 131,303 | $ 465,523 | $ 385,949 |
Marketable securities | 245,033 | 1,016,606 | ||
Corporate Bonds [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 16,995 | |||
U.S. Government and Government Agency Debt Securities [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 39,989 | |||
Marketable securities | 144,986 | 404,982 | ||
Corporate Debt Securities [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Marketable securities | 100,047 | 611,624 | ||
Cash [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 162,495 | 89,708 | ||
Money Market Funds [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 362,587 | $ 41,595 | ||
Commercial Paper [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 160,151 |
Cash and Investments - Summary
Cash and Investments - Summary of Available-for-Sale Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 245,159 | $ 1,016,999 |
Gross Unrealized Gains | 12 | 107 |
Gross Unrealized Losses | (138) | (500) |
Aggregate Fair Value | 245,033 | 1,016,606 |
U.S. Government and Government Agency Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 145,066 | 405,049 |
Gross Unrealized Gains | 68 | |
Gross Unrealized Losses | (80) | (135) |
Aggregate Fair Value | 144,986 | 404,982 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 100,093 | 611,950 |
Gross Unrealized Gains | 12 | 39 |
Gross Unrealized Losses | (58) | (365) |
Aggregate Fair Value | $ 100,047 | $ 611,624 |
Cash and Investments - Fair Val
Cash and Investments - Fair Value of Available-for-Sale Marketable Securities by Contractual Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Marketable Securities [Abstract] | ||
Due within one year | $ 245,033 | $ 785,221 |
After one year through three years | 231,385 | |
Aggregate Fair Value | $ 245,033 | $ 1,016,606 |
Cash and Investments - Addition
Cash and Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Marketable Securities [Abstract] | ||
Unrealized losses | $ (138,000) | $ (500,000) |
Fair value | 199,107,000 | 621,500,000 |
Available-for-sale securities, continuous unrealized loss position, more than twelve months, fair value | $ 0 | $ 0 |
Cash and Investments - Schedu42
Cash and Investments - Schedule of Unrealized Losses on Marketable Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash and Cash Equivalents [Line Items] | ||
Fair value | $ 199,107 | $ 621,500 |
Unrealized loss | (138) | (500) |
U.S. Government and Government Agency Debt Securities [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Fair value | 137,485 | 222,723 |
Unrealized loss | (80) | (135) |
Corporate Debt Securities [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Fair value | 61,622 | 398,777 |
Unrealized loss | $ (58) | $ (365) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Research and Development [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Change in fair value of contingent consideration liability | $ 6.1 | $ 32.7 | |||||
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 | 18.5 | $ 18.5 | |||||
Potential future payments maximum period | 3 years | 3 years | |||||
Rising Tide Games [Member] | Research and Development [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Change in fair value of contingent consideration liability | $ 3.3 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | $ 824,755 | $ 1,058,201 |
Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 18,490 | 44,420 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 362,587 | 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 | 184,975 | 404,982 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 277,193 | 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 | 362,587 | 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 | 362,587 | 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 | 462,168 | 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 | 184,975 | 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 | 277,193 | 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 | $ 18,490 | $ 44,420 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 369,921 | $ 477,738 | |
Less accumulated depreciation | (96,700) | (179,819) | |
Total property and equipment, net | 273,221 | 297,919 | $ 348,793 |
Computer Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 36,373 | 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 | 195,372 | 194,574 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 10,348 | 10,616 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 7,748 | 9,694 | |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 30,950 | $ 31,778 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 369,921 | $ 477,738 | |
Accumulated depreciation | 96,700 | 179,819 | |
Property and equipment, net | 273,221 | 297,919 | $ 348,793 |
Computer Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 36,373 | $ 141,946 | |
Asset Held for Sale [Member] | Computer Equipment [Member] | Other Current Assets [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 83,900 | ||
Accumulated depreciation | 80,700 | ||
Property and equipment, net | $ 3,200 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Sep. 11, 2015 | Feb. 11, 2014 | Sep. 30, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||||||
Common stock, shares | 28.2 | ||||||
Common stock vesting period | 4 years | ||||||
Stock-based expense | $ 131,575 | $ 129,233 | $ 84,393 | ||||
Amortization of acquired intangibles, net of tax | $ 27,400 | 24,600 | $ 12,200 | ||||
Common Class A [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Class A Common Stock closing price | $ 4.63 | ||||||
NaturalMotion, Ltd. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, cost of acquired entity, cash paid | $ 391,000 | 2,800 | |||||
Business acquisition effective date of acquisition | Feb. 11, 2014 | ||||||
Professional fees and transaction taxes | $ 6,400 | ||||||
Business acquisition percentage of voting interests acquired | 100.00% | ||||||
Fair value of the purchase consideration | $ 522,200 | $ 522,158 | |||||
Stock-based expense | 29,500 | ||||||
Amortization of acquired intangibles, net of tax | 19,700 | ||||||
NaturalMotion, Ltd. [Member] | Common Class A [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of the purchase consideration | 700 | ||||||
Preliminary fair value of stock options | 29,700 | ||||||
Allocation for future compensation expense | $ 29,000 | ||||||
Common stock granted to continuing employees | 11.6 | ||||||
Common stock vesting period | 3 years | ||||||
Common stock value as on acquisition date | $ 53,600 | ||||||
Rising Tide Games [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, cost of acquired entity | $ 44,200 | ||||||
Business acquisition, cost of acquired entity, cash paid | 22,400 | ||||||
Business acquisition, cost of acquired entity, fair value of contingent consideration | $ 21,800 | ||||||
Business acquisition effective date of acquisition | Sep. 11, 2015 | ||||||
Potential future payments maximum period | 3 years | 3 years | |||||
Potential future payments | $ 140,000 | $ 140,000 | |||||
Professional fees and transaction taxes | $ 900 |
Acquisitions - Schedule of Purc
Acquisitions - Schedule of Purchase Price Allocation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Sep. 11, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | ||||
Estimated Fair Value, Goodwill | $ 657,671 | $ 650,778 | $ 227,989 | |
Developed Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated Weighted Average Useful Life | 3 years | |||
NaturalMotion, Ltd. [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Value, Tangible net assets (liabilities) assumed | $ 1,259 | |||
Estimated Fair Value, Goodwill | 448,821 | |||
Estimated Fair Value, Total | 524,980 | |||
NaturalMotion, Ltd. [Member] | Developed Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Value, Intangible assets | $ 59,900 | |||
Estimated Weighted Average Useful Life | 3 years | |||
NaturalMotion, Ltd. [Member] | Branding and Trade Names [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Value, Intangible assets | $ 15,000 | |||
Estimated Weighted Average Useful Life | 4 years 7 months 6 days | |||
Rising Tide Games [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Value, Tangible net assets (liabilities) assumed | $ 2,445 | |||
Estimated Fair Value, Goodwill | 25,050 | |||
Deferred tax liabilities | (10,300) | |||
Estimated Fair Value, Total | 44,195 | |||
Rising Tide Games [Member] | Developed Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Value, Intangible assets | $ 27,000 |
Acquisitions - Schedule of Pu49
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 |
Acquisitions - Fair Value of Pu
Acquisitions - Fair Value of Purchase Consideration (Detail) - NaturalMotion, Ltd. [Member] - USD ($) $ in Thousands | Feb. 11, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Cash | $ 391,000 | $ 2,800 | |
Common stock | 130,465 | ||
Fair value of stock options assumed | 693 | ||
Total | $ 522,200 | $ 522,158 |
Acquisitions - Fair Value of 51
Acquisitions - Fair Value of Purchase Consideration (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2015shares | |
NaturalMotion, Ltd. [Member] | |
Business Acquisition [Line Items] | |
Common stock, shares | 28,178,201 |
Acquisitions - Schedule of Reve
Acquisitions - Schedule of Revenues and Earnings of Acquired Entity Post Acquisition Period (Detail) - NaturalMotion, Ltd. [Member] $ in Thousands | 11 Months Ended |
Dec. 31, 2014USD ($) | |
Business Combination, Separately Recognized Transactions [Line Items] | |
Total revenues | $ 26,800 |
Net loss | $ 74,891 |
Acquisitions - Pro Forma Financ
Acquisitions - Pro Forma Financial Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Total revenues | $ 698,608 | $ 912,880 |
Net loss | $ (233,036) | $ (96,048) |
Goodwill and Other Intangible54
Goodwill and Other Intangible Assets - Schedule of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 650,778 | $ 227,989 |
Additions | 25,050 | 450,582 |
Foreign currency translation adjustments | (20,816) | (23,994) |
Goodwill adjustments | 2,659 | (3,799) |
Goodwill, ending balance | $ 657,671 | $ 650,778 |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets - Acquisition-Related Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 196,968 | $ 173,376 |
Accumulated Amortization | (132,952) | (106,515) |
Net Book Value | 64,016 | 66,861 |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 174,970 | 151,376 |
Accumulated Amortization | (118,940) | (94,560) |
Net Book Value | 56,030 | 56,816 |
Trademarks, Branding and Domain Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 16,290 | 16,292 |
Accumulated Amortization | (9,210) | (7,861) |
Net Book Value | 7,080 | 8,431 |
Acquired Lease Intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 5,708 | 5,708 |
Accumulated Amortization | (4,802) | (4,094) |
Net Book Value | $ 906 | $ 1,614 |
Goodwill and Other Intangible56
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquired intangible assets | $ 27.4 | $ 24.6 | $ 12.2 |
Developed Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 3 years | ||
Trademarks, Branding and Domain Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 1 year | ||
Acquired Lease Intangibles [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 3 years 3 months 18 days |
Goodwill and Other Intangible57
Goodwill and Other Intangible Assets - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2,016 | $ 29,084 |
2,017 | 11,203 |
2,018 | 7,634 |
2019 and thereafter | 9,975 |
Total | $ 57,896 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income before Income Tax, Domestic and Foreign (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (83,432) | $ (132,281) | $ (56,215) |
International | (46,750) | (100,947) | (8,654) |
Income (loss) before income taxes | $ (130,182) | $ (233,227) | $ (64,869) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Current: | ||||
Federal | $ (30) | $ (132) | $ (15,712) | |
State | (2,863) | (16) | (134) | |
Foreign | 3,817 | 2,777 | 3,206 | |
Total current tax expense | 924 | 2,629 | (12,640) | |
Deferred: | ||||
Federal | (8,818) | (6,888) | (14,357) | |
State | (504) | (353) | (86) | |
Foreign | (274) | (2,715) | (804) | |
Total deferred tax expense (benefit) | (12,693) | (10,982) | (18,766) | |
Provision for (benefit from) income taxes | $ (8,500) | $ (8,672) | $ (7,327) | $ (27,887) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Reconciliation (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Expected benefit at U.S. federal statutory rate | $ (45,564) | $ (81,630) | $ (22,704) | |
State income taxes - net of federal benefit | (2,863) | (2,681) | (1,503) | |
Income taxed at foreign rates | 18,406 | 33,417 | 4,024 | |
Equity-based compensation | 1,125 | 2,865 | 6,741 | |
Tax credits | (12,389) | |||
Tax reserve for uncertain tax positions | 1,827 | 19 | 2,224 | |
Change in valuation allowance | 17,526 | 37,202 | 14,705 | |
Change in earnings mix | 19,700 | (16,306) | ||
Impact of change in tax rates | (18) | 25 | (1,530) | |
Acquisition costs | 650 | 2,981 | (1,480) | |
Other | 239 | 475 | 331 | |
Provision for (benefit from) income taxes | $ (8,500) | $ (8,672) | $ (7,327) | $ (27,887) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||||
Effective income tax rate reconciliation, repatriation of foreign earnings | $ 19,700 | $ (16,306) | |||
Deferred tax assets, valuation allowance | $ (151,808) | (151,808) | $ (127,917) | ||
Operating loss carryforward to additional paid in capital | 472,300 | ||||
Liability for uncertain tax positions | 600 | 600 | 700 | ||
Unrecognized tax benefits that might impact effective tax rate | 142,800 | 142,800 | |||
Tax benefits | 8,500 | 8,672 | 7,327 | 27,887 | |
Gross unrecognized tax benefits | (142,845) | (142,845) | $ 140,889 | $ 133,491 | $ 98,721 |
Deferred Tax Assets [Member] | |||||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||||
Gross unrecognized tax benefits | 91,800 | 91,800 | |||
Other Noncurrent Liabilities [Member] | |||||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||||
Gross unrecognized tax benefits | $ 51,000 | $ 51,000 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Tax credit carryforwards | $ 47,978 | $ 40,501 |
Net operating loss carryforwards | 44,551 | 30,381 |
Equity based compensation | 24,930 | 28,263 |
Acquired intangible assets | 13,524 | |
Accrued expenses | 11,593 | 19,406 |
Charitable contributions | 3,930 | 2,047 |
State taxes | 2,321 | 2,933 |
Other accrued compensation | 1,664 | 6,664 |
Deferred revenue | 1,309 | 1,129 |
Other | 434 | 1,956 |
Deferred rent | 2,186 | |
Valuation allowance | (151,808) | (127,917) |
Net deferred tax assets | 426 | 7,549 |
Deferred tax liabilities: | ||
Acquired intangible assets | (1,654) | |
Deferred rent | (675) | |
Depreciation | (5,777) | (8,453) |
Net deferred tax liabilities | (6,452) | (10,107) |
Net deferred taxes | $ (6,026) | $ (2,558) |
Income Taxes - Summary of Net O
Income Taxes - Summary of Net Operating Loss and Tax Credit Carryforwards (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, amount | $ 340,888 |
Tax credit carryforward, amount | $ 72,615 |
Operating loss carryforwards, expiration dates | 2017 - 2035 |
Tax credit carryforward, expiration dates | 2019 - indefinite |
Foreign [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, amount | $ 44,398 |
Tax credit carryforward, amount | $ 443 |
Operating loss carryforwards, expiration dates | 2033 - indefinite |
Tax credit carryforward, expiration dates | indefinite |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, amount | $ 372,373 |
Tax credit carryforward, amount | $ 82,111 |
Operating loss carryforwards, expiration dates | 2027 - 2035 |
Tax credit carryforward, expiration dates | 2030-2035 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Contingencies (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning balance | $ 140,889 | $ 133,491 | $ 98,721 |
Additions based on tax positions related to current | 8,876 | 7,738 | 16,414 |
Additions based on tax positions related to current years | 82 | 171 | 18,356 |
Reductions for tax positions of prior years | (2,817) | (511) | |
Decreases related to settlements of prior year tax positions | (4,185) | ||
Unrecognized tax benefits, ending balance | $ (142,845) | $ 140,889 | $ 133,491 |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Accrued accounts payable | $ 31,700 | $ 17,542 |
Accrued compensation liability | 16,278 | 26,113 |
Accrued restructuring liability | 9,859 | 7,214 |
Other current liabilities | 19,854 | 20,955 |
Accrued escrow for acquisitions | 47,906 | |
Contingent consideration liability | 44,420 | |
Total other current liabilities | $ 77,691 | $ 164,150 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring charge | $ 36,500,000 | ||||
Lease and contract termination costs | $ 1,200,000 | ||||
Cost of Revenue [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring charge | 1,100,000 | ||||
Research and Development [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring charge | 14,100,000 | ||||
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 | 20,500,000 | ||||
Q2 2015 Restructuring Plan [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring charge | 33,800,000 | ||||
Employee severance costs pay and related costs | 10,700,000 | ||||
Lease and contract termination costs | 23,100,000 | ||||
Stock-based expense reversals | 400,000 | ||||
Restructuring liability | 1,860,000 | $ 26,406,000 | $ 491,000 | ||
Restructuring liability, expected paid out period | 6 years 4 months 24 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 | |||
Other Restructuring Plans [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability | 1,933,000 | $ 332,000 | 784,000 | 1,957,000 | $ 2,857,000 |
Restructuring liability, expected paid out period | 1 year 9 months 18 days | ||||
Q1 2014 Restructuring Plan [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability | $ 6,663,000 | $ 2,290,000 | $ 5,205,000 | $ 8,082,000 | $ 10,009,000 |
Restructuring - Summary of Hist
Restructuring - Summary of Historical Restructuring Liability (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | |
Q2 2015 Restructuring Plan [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability, Beginning balance | $ 491,000 | $ 1,860,000 | |||
Restructuring expense and adjustments | 21,200,000 | 367,000 | $ 12,282,000 | $ 33,849,000 | |
Cash payments | 4,715,000 | (1,736,000) | (10,422,000) | (7,443,000) | |
Restructuring liability, Ending balance | 26,406,000 | 491,000 | 1,860,000 | 26,406,000 | |
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 | ||
Q1 2014 Restructuring Plan [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability, Beginning balance | 5,205,000 | 6,663,000 | 8,082,000 | 10,009,000 | 10,009,000 |
Restructuring expense and adjustments | 1,500,000 | 33,000 | 30,000 | 189,000 | (1,214,000) |
Cash payments | (1,449,000) | (1,491,000) | (1,449,000) | (2,116,000) | (6,505,000) |
Restructuring liability, Ending balance | 2,290,000 | 5,205,000 | 6,663,000 | 8,082,000 | 2,290,000 |
Other Restructuring Plans [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability, Beginning balance | 784,000 | 1,933,000 | 1,957,000 | 2,857,000 | 2,857,000 |
Restructuring expense and adjustments | 8,000 | 19,000 | 31,000 | 58,000 | |
Cash payments | (460,000) | (1,168,000) | (24,000) | (931,000) | (2,583,000) |
Restructuring liability, Ending balance | $ 332,000 | $ 784,000 | $ 1,933,000 | $ 1,957,000 | $ 332,000 |
Restructuring - Additional In68
Restructuring - Additional Information (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | |
Q1 2014 Restructuring Plan [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expense and adjustments | $ 1,500 | $ 33 | $ 30 | $ 189 | $ (1,214) |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | Nov. 30, 2011shares | Dec. 31, 2015USD ($)Voting_Rights$ / sharesshares | Dec. 31, 2015USD ($)Voting_Rights$ / sharesshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($) | Oct. 31, 2015USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, voting rights | Voting Rights. Holders of our Class A common stock are entitled to one vote per share, holders of our Class B common stock are entitled to seven votes per share and holders of our Class C common stock are entitled to 70 votes per share. In general, holders of our Class A common stock, Class B common stock and Class C common stock will vote together as a single class on all matters submitted to a vote of stockholders, unless otherwise required by law. Delaware law could require either our Class A common stock, Class B common stock or our Class C common stock to vote separately as a single class in the following circumstances: . If we were to seek to amend our Certificate of Incorporation to increase the authorized number of shares of a class of stock, or to increase or decrease the par value of a class of stock; and . If we were to seek to amend our Certificate of Incorporation in a manner that altered or changed the powers, preferences or special rights of a class of stock in a manner that affected its holders adversely. | |||||
Conversion of stock description | Conversion. Our Class A common stock is not convertible into any other shares of our capital stock. Each share of our Class B common stock and Class C common stock is convertible at any time at the option of the holder into one share of our Class A common stock. In addition, after the closing of the initial public offering, upon sale or transfer of shares of either Class B common stock or Class C common stock, whether or not for value, each such transferred share shall automatically convert into one share of Class A common stock, except for certain transfers described in our amended and restated certificate of incorporation. Our Class B common stock and Class C common stock will convert automatically into Class A common stock on the date on which the number of outstanding shares of Class B common stock and Class C common stock together represent less than 10% of the aggregate combined voting power of our capital stock. Once transferred and converted into Class A common stock, the Class B common stock and Class C common stock may not be reissued. | |||||
Maximum percentage of common stock outstanding required for conversion | 10.00% | |||||
Payments for repurchase of common stock | $ 88,409,000 | $ 9,302,000 | ||||
Treasury stock acquired, average cost per share | $ / shares | $ 2.60 | $ 2.50 | ||||
Stock repurchase program, aggregate number of shares repurchased value | $ 98,900,000 | $ 200,000,000 | ||||
Remaining amount transfer to accounts payable | 29,676,000 | 29,676,000 | $ 14,965,000 | |||
Remaining amount transfer to other current liabilities | $ 77,691,000 | $ 77,691,000 | 164,150,000 | |||
Stock repurchase program, expiry date | Feb. 29, 2016 | |||||
Employee stock ownership Plan (ESOP), method of measuring compensation | The number of shares of our Class A common stock reserved for future issuance under our 2011 Plan will automatically increase on January 1 of each year, beginning on January 1, 2012, and continuing through and including January 1, 2021, by 4% of the total number of shares of our capital stock outstanding as of December 31 of the preceding calendar year. | |||||
Stock based compensation expense recognized | $ 131,575,000 | 129,233,000 | 84,393,000 | |||
Estimated total liability | $ 337,729,000 | 337,729,000 | 453,101,000 | |||
Total unrecognized stock based compensation expense, stock options | $ 7,600,000 | 7,600,000 | ||||
Aggregated intrinsic value of shares exercised | 9,100,000 | 25,100,000 | 85,900,000 | |||
Grant date fair value of options vested | $ 10,200,000 | $ 6,600,000 | $ 12,800,000 | |||
Common stock, shares authorized | shares | 2,020,517,000 | 2,020,517,000 | 2,020,517,000 | |||
Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 200,000,000 | |||||
Common Stock Repurchase Program [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Payments for repurchase of common stock | $ 10,500,000 | |||||
Remaining amount transfer to accounts payable | 3,500,000 | $ 3,500,000 | ||||
Remaining amount transfer to other current liabilities | 7,000,000 | 7,000,000 | ||||
Restricted Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized stock based compensation expense, restricted shares | 20,600,000 | $ 20,600,000 | ||||
Weighted average recognition period | 1 year 1 month 17 days | |||||
Zynga Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average recognition period | 1 year 3 months | |||||
Restricted Stock Units (ZSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized stock based compensation expense, restricted shares | 168,300,000 | $ 168,300,000 | ||||
Weighted average recognition period | 2 years 4 months 24 days | |||||
Shares granted as part of our executive compensation plan | shares | 0 | |||||
2015 Employee Bonus Program [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation expense recognized | $ 4,400,000 | |||||
Number of shares issued | shares | 4,200,000 | |||||
Estimated total liability | $ 11,200,000 | $ 11,200,000 | ||||
Closing stock price | $ / shares | $ 2.68 | $ 2.68 | ||||
Common Class A [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Voting rights per share | Voting_Rights | 1 | 1 | ||||
Annual increase percentage of common stock shares outstanding | 4.00% | |||||
Common Class A [Member] | Common Stock Repurchase Program [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Payments for repurchase of common stock | $ 88,400,000 | $ 80,200,000 | ||||
Repurchase of common stock | shares | 37,900,000 | |||||
Common Class A [Member] | 2011 ESPP [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, shares authorized | shares | 73,300,000 | 73,300,000 | ||||
Common stock capital shares reserved for future issuance increases | shares | 25,000,000 | |||||
Percentage of capital stock outstanding | 2.00% | |||||
Share-based compensation arrangement by share-based payment award, maximum employee subscription rate | 15.00% | |||||
Share based compensation arrangement by share based payment award employee discount rate | 85.00% | |||||
Employee contributions | $ 2,100,000 | |||||
Stock-based expense related to 2011 ESPP | $ 2,700,000 | |||||
Common Class B [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Voting rights per share | Voting_Rights | 7 | 7 | ||||
Common Class C [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Voting rights per share | Voting_Rights | 70 | 70 |
Stockholders' Equity - Weighted
Stockholders' Equity - Weighted-Average Grant Date Fair Value of Stock Options and Related Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected term, in years | 6 years | 5 years | 7 years |
Risk-free interest rates, minimum | 1.65% | 1.31% | 2.05% |
Expected volatility, minimum | 53.00% | 56.00% | 49.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average estimated fair value of options granted during the year | $ 1.51 | $ 3.44 | $ 1.82 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Expense Related to Grants of Employee and Consultant Stock Options, Restricted Stock and ZSUs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based expense | $ 131,575 | $ 129,233 | $ 84,393 |
Cost of Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based expense | 4,547 | 4,623 | 468 |
Research and Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based expense | 94,548 | 83,673 | 61,931 |
Sales and Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based expense | 7,501 | 5,927 | 8,079 |
General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based expense | $ 24,979 | $ 35,010 | $ 13,915 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share Based Compensation Stock Option Activity (Detail) - Zynga Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 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 | 305 | |
Stock Options, Forfeited and cancelled | (12,510) | |
Stock Options, Exercised | (4,040) | |
Stock Options Outstanding, Ending balance | 23,215 | 39,460 |
Stock Options, Exercisable options | 20,076 | |
Stock Options, Vested and expected to vest | 22,825 | |
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 | 0.42 | |
Outstanding Options, Weighted Average Exercise Price, Ending Balance | 1.93 | $ 2.22 |
Weighted-Average Exercise Price, Exercisable options | 1.30 | |
Weighted-Average Exercise Price, Vested and expected to vest | $ 1.40 | |
Outstanding Options, Aggregate Intrinsic Value of Stock Options Outstanding | $ 35,949 | $ 47,347 |
Aggregate Intrinsic Value of Stock Options Outstanding, Exercisable options | 33,252 | |
Aggregate Intrinsic Value of Stock Options, Vested and expected to vest | $ 35,834 | |
Weighted Average Contractual Term (in years) | 5 years 4 months 10 days | 6 years 8 months 27 days |
Weighted-Average Contractual Term (in years), Exercisable options | 5 years 4 days | |
Weighted-Average Contractual Term (in years), Vested and expected to vest | 5 years 3 months 22 days |
Stockholders' Equity - Schedu73
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 | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested Outstanding Shares, Beginning balance | shares | 69,883 |
Nonvested Shares, Granted | shares | 51,962 |
Nonvested Shares, Vested | shares | (29,106) |
Nonvested Shares, Forfeited and cancelled | shares | (30,303) |
Nonvested Outstanding Shares, Ending balance | shares | 62,436 |
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 3.64 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 2.70 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 3.71 |
Weighted Average Grant Date Fair Value, Forfeited and cancelled | $ / shares | 3.14 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 3.06 |
Nonvested Aggregated Intrinsic Value, Beginning balance | $ | $ 185,889 |
Nonvested Aggregated Intrinsic Value, Ending balance | $ | $ 167,328 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Reserved for Future Issuance (Detail) shares in Thousands | Dec. 31, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, Non-option equity instruments, Outstanding, Number | 250,353 |
2011 Equity Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, Non-option equity instruments, Outstanding, Number | 101,834 |
2011 Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, Non-option equity instruments, Outstanding, Number | 62,868 |
Zynga Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, Non-option equity instruments, Outstanding, Number | 23,215 |
Restricted Stock Units (ZSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, Non-option equity instruments, Outstanding, Number | 62,436 |
Stockholders' Equity - Schedu75
Stockholders' Equity - Schedule of Accumulated Other Comprehensive Income Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income, net of tax, Beginning balance | $ (29,175) | $ (1,046) | |
Other comprehensive income before reclassifications, net of tax | (23,173) | (28,137) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | (40) | 8 | |
Other comprehensive income (loss) | (23,213) | (28,129) | $ 401 |
Accumulated other comprehensive income, net of tax, Ending balance | (52,388) | (29,175) | (1,046) |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income, net of tax, Beginning balance | (28,781) | (1,259) | |
Other comprehensive income before reclassifications, net of tax | (23,480) | (27,522) | |
Other comprehensive income (loss) | (23,480) | (27,522) | |
Accumulated other comprehensive income, net of tax, Ending balance | (52,261) | (28,781) | (1,259) |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income, net of tax, Beginning balance | (394) | 213 | |
Other comprehensive income before reclassifications, net of tax | 307 | (615) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | (40) | 8 | |
Other comprehensive income (loss) | 267 | (607) | |
Accumulated other comprehensive income, net of tax, Ending balance | $ (127) | $ (394) | $ 213 |
Net Income (Loss) Per Share o76
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 | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
BASIC: | |||
Net income (loss) attributable to common stockholders | $ (121,510) | $ (225,900) | $ (36,982) |
Weighted-average common shares outstanding | 913,511 | 874,509 | 799,794 |
Basic net income (loss) per share | $ (0.13) | $ (0.26) | $ (0.05) |
DILUTED: | |||
Weighted -average common shares outstanding-basic | 913,511 | 874,509 | 799,794 |
Weighted -average common shares outstanding-diluted | 913,511 | 874,509 | 799,794 |
Diluted net income (loss) per share | $ (0.13) | $ (0.26) | $ (0.05) |
Common Class A [Member] | |||
BASIC: | |||
Net income (loss) attributable to common stockholders | $ (103,628) | $ (189,732) | $ (29,082) |
Weighted-average common shares outstanding | 779,071 | 734,493 | 628,947 |
Basic net income (loss) per share | $ (0.13) | $ (0.26) | $ (0.05) |
DILUTED: | |||
Net income (loss) attributable to common stockholders-basic | $ (103,628) | $ (189,732) | $ (29,082) |
Net income (loss) attributable to common stockholders-diluted | $ (121,510) | $ (225,900) | $ (36,982) |
Weighted -average common shares outstanding-basic | 779,071 | 734,493 | 628,947 |
Weighted -average common shares outstanding-diluted | 913,511 | 874,509 | 799,794 |
Diluted net income (loss) per share | $ (0.13) | $ (0.26) | $ (0.05) |
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 | $ (2,729) | $ (5,300) | $ (949) |
Conversion of common stock class | 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 | $ (15,153) | $ (30,869) | $ (6,951) |
Conversion of common stock class | 113,923 | 119,499 | 150,330 |
Common Class B [Member] | |||
BASIC: | |||
Net income (loss) attributable to common stockholders | $ (15,153) | $ (30,869) | $ (6,951) |
Weighted-average common shares outstanding | 113,923 | 119,499 | 150,330 |
Basic net income (loss) per share | $ (0.13) | $ (0.26) | $ (0.05) |
DILUTED: | |||
Net income (loss) attributable to common stockholders-basic | $ (15,153) | $ (30,869) | $ (6,951) |
Net income (loss) attributable to common stockholders-diluted | $ (15,153) | $ (30,869) | $ (6,951) |
Weighted -average common shares outstanding-basic | 113,923 | 119,499 | 150,330 |
Weighted -average common shares outstanding-diluted | 113,923 | 119,499 | 150,330 |
Diluted net income (loss) per share | $ (0.13) | $ (0.26) | $ (0.05) |
Common Class C [Member] | |||
BASIC: | |||
Net income (loss) attributable to common stockholders | $ (2,729) | $ (5,300) | $ (949) |
Weighted-average common shares outstanding | 20,517 | 20,517 | 20,517 |
Basic net income (loss) per share | $ (0.13) | $ (0.26) | $ (0.05) |
DILUTED: | |||
Net income (loss) attributable to common stockholders-basic | $ (2,729) | $ (5,300) | $ (949) |
Net income (loss) attributable to common stockholders-diluted | $ (2,729) | $ (5,300) | $ (949) |
Weighted -average common shares outstanding-basic | 20,517 | 20,517 | 20,517 |
Weighted -average common shares outstanding-diluted | 20,517 | 20,517 | 20,517 |
Diluted net income (loss) per share | $ (0.13) | $ (0.26) | $ (0.05) |
Net Income (Loss) Per Share o77
Net Income (Loss) Per Share of Common Stock - Weighted Average Employee Equity Awards (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 101,892 | 114,219 | 129,730 |
Warrants [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 579 | ||
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 | 8,716 | 12,624 | 4,203 |
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 | 63,764 | 59,141 | 63,794 |
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 | 29,412 | 42,454 | 61,154 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,016 | $ 4,348 |
2,017 | 3,154 |
2,018 | 1,693 |
2,019 | 1,458 |
2,020 | 174 |
2021 and thereafter | 44 |
Total operating leases, future minimum payments | $ 10,871 |
Commitments and Contingencies79
Commitments and Contingencies - Additional Information (Detail) | Aug. 04, 2015USD ($) | Apr. 02, 2014Cases | Apr. 04, 2013Cases | Mar. 11, 2013Cases | Nov. 19, 2012Cases | Aug. 16, 2012Cases | Aug. 03, 2012Cases | Aug. 01, 2012Cases | Jul. 30, 2012Cases | Jun. 30, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($)Cases |
Loss Contingencies [Line Items] | ||||||||||||||
Rent expense on operating leases | $ | $ 4,500,000 | $ 4,500,000 | $ 7,300,000 | |||||||||||
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. |
Commitments and Contingencies80
Commitments and Contingencies - Schedule of Future Minimum Purchase Commitments (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 19,749 |
2,017 | 13,441 |
2,018 | 722 |
2019 and thereafter | 270 |
Total future minimum other purchase commitments | $ 34,182 |
Geographical Information - Reve
Geographical Information - Revenue by Geographical Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 764,717 | $ 690,410 | $ 873,266 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 506,268 | 426,906 | 519,819 |
All Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 258,449 | $ 263,504 | $ 353,447 |
Geographical Information - Re82
Geographical Information - Revenue by Geographical Area (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Percentage of total revenue | 10.00% |
Geographical Information - Prop
Geographical Information - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property plant and equipment, net | $ 273,221 | $ 297,919 | $ 348,793 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property plant and equipment, net | 269,721 | 294,708 | 345,598 |
All Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property plant and equipment, net | $ 3,500 | $ 3,211 | $ 3,195 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - SF Incubator, LLC and super.io, Inc., [Member] - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 15, 2015 |
Related Party Transaction [Line Items] | ||
Business acquisition, assets assumed | $ 1 | |
Business acquisition, liabilities assumed | $ 0.4 | |
Business acquisition, stockholder's equity | $ 0.1 | |
Business acquisition, other current liabilities | $ 0.1 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Feb. 12, 2016 | Jan. 01, 2015 | Feb. 02, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2013 |
Subsequent Event [Line Items] | |||||||
Payments for repurchase of common stock | $ 88,409 | $ 9,302 | |||||
Treasury stock acquired, average cost per share | $ 2.60 | $ 2.50 | |||||
Stock repurchase program, aggregate number of shares repurchased value | $ 98,900 | $ 200,000 | |||||
Loss associated with exited games | $ 1,200 | ||||||
Common Stock Repurchase Program [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Payments for repurchase of common stock | 10,500 | ||||||
Common Class A [Member] | Common Stock Repurchase Program [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Payments for repurchase of common stock | $ 88,400 | $ 80,200 | |||||
Write Off of Prepaid License [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Loss associated with exited games | 900 | ||||||
Contract Termination [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Loss associated with exited games | $ 300 | ||||||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Treasury stock acquired, average cost per share | $ 2.40 | ||||||
Stock repurchase program, aggregate number of shares repurchased value | $ 101,900 | ||||||
Loss associated with exited games | $ 4,300 | ||||||
Subsequent Event [Member] | Common Class A [Member] | Common Stock Repurchase Program [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Payments for repurchase of common stock | $ 42,200 | ||||||
Subsequent Event [Member] | Write Off of Prepaid License [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Loss associated with exited games | 600 | ||||||
Subsequent Event [Member] | Contract Termination [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Loss associated with exited games | $ 3,700 | ||||||
Zindagi Game [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Cash consideration | $ 15,000 | ||||||
Contingent consideration | $ 60,000 |
Financial Statement Schedules86
Financial Statement Schedules - Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation and Qualifying Accounts [Abstract] | |||
Balance at Beginning of Year | $ 0 | $ 160 | |
Charged to Expenses/ Against Revenue | 0 | $ 0 | 0 |
Write-Offs Net of Recoveries | $ (160) | ||
Balance at End of Year | $ 0 | $ 0 |