Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
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 | $ 2,833 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 784,145,281 | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 66,733,744 | ||
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, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 372,870 | $ 852,467 |
Short-term investments | 308,506 | |
Accounts receivable, net of allowance of $0 at December 31, 2017 and December 31, 2016 | 103,677 | 77,260 |
Restricted cash | 12,807 | 6,199 |
Prepaid expenses | 24,253 | 22,951 |
Other current assets | 8,837 | 6,599 |
Total current assets | 830,950 | 965,476 |
Goodwill | 730,464 | 613,335 |
Intangible assets, net | 64,258 | 25,430 |
Property and equipment, net | 266,589 | 269,439 |
Restricted cash | 20,000 | 3,050 |
Prepaid expenses | 23,821 | 18,598 |
Other non-current assets | 43,251 | 10,521 |
Total assets | 1,979,333 | 1,905,849 |
Current liabilities: | ||
Accounts payable | 18,938 | 23,999 |
Income tax payable | 6,677 | 1,889 |
Deferred revenue | 134,007 | 141,998 |
Other current liabilities | 123,089 | 75,754 |
Total current liabilities | 282,711 | 243,640 |
Deferred revenue | 568 | 158 |
Deferred tax liabilities, net | 5,902 | 5,791 |
Other non-current liabilities | 48,912 | 75,596 |
Total liabilities | 338,093 | 325,185 |
Stockholders’ equity: | ||
Common stock, $0.00000625 par value, and additional paid-in capital - authorized shares: 2,020,517; shares outstanding: 870,660 shares (Class A, 783,376, Class B, 66,767 and Class C, 20,517) as of December 31, 2017 and 886,850 (Class A, 770,269, Class B, 96,064 and Class C, 20,517) as of December 31, 2016 | 3,426,505 | 3,349,714 |
Accumulated other comprehensive income (loss) | (93,497) | (128,694) |
Accumulated deficit | (1,691,768) | (1,640,356) |
Total stockholders’ equity | 1,641,240 | 1,580,664 |
Total liabilities and stockholders’ equity | $ 1,979,333 | $ 1,905,849 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
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 | 870,660,000 | 886,850,000 |
Common Class A [Member] | ||
Common stock, shares outstanding | 783,376,000 | 770,269,000 |
Common Class B [Member] | ||
Common stock, shares outstanding | 66,767,000 | 96,064,000 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||
Online game | $ 665,593 | $ 547,291 | $ 590,755 |
Advertising and other | 195,797 | 194,129 | 173,962 |
Total revenue | 861,390 | 741,420 | 764,717 |
Costs and expenses: | |||
Cost of revenue | 258,971 | 238,546 | 235,985 |
Research and development | 256,012 | 320,300 | 361,931 |
Sales and marketing | 212,030 | 183,637 | 169,573 |
General and administrative | 108,653 | 92,509 | 143,284 |
Impairment of intangible assets | 20,677 | ||
Total costs and expenses | 835,666 | 855,669 | 910,773 |
Income (loss) from operations | 25,724 | (114,249) | (146,056) |
Interest income | 5,309 | 3,057 | 2,568 |
Other income (expense), net | 6,550 | 6,461 | 13,306 |
Income (loss) before income taxes | 37,583 | (104,731) | (130,182) |
Provision for (benefit from) income taxes | 10,944 | 3,442 | (8,672) |
Net income (loss) | $ 26,639 | $ (108,173) | $ (121,510) |
Net income (loss) per share attributable to common stockholders: | |||
Basic | $ 0.03 | $ (0.12) | $ (0.13) |
Diluted | $ 0.03 | $ (0.12) | $ (0.13) |
Weighted average common shares used to compute net income (loss) per share attributable to common stockholders: | |||
Basic | 869,067 | 878,827 | 913,511 |
Diluted | 897,165 | 878,827 | 913,511 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Partners Capital [Abstract] | |||
Net income (loss) | $ 26,639 | $ (108,173) | $ (121,510) |
Other comprehensive income (loss): | |||
Change in foreign currency translation adjustment | 35,352 | (76,410) | (23,480) |
Net change in unrealized gains (losses) on available-for-sale marketable securities, net of tax | (155) | 104 | 267 |
Other comprehensive income (loss), net of tax: | 35,197 | (76,306) | (23,213) |
Comprehensive income (loss): | $ 61,836 | $ (184,479) | $ (144,723) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Class A,B, and C Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Beginning balance, Value at Dec. 31, 2014 | $ 1,895,692 | $ 5 | $ 3,096,977 | $ (29,175) | $ (1,172,115) | |
Beginning balance, Shares at Dec. 31, 2014 | 905,860,000 | |||||
Exercise of stock options and ESPP | 7,567 | 7,567 | ||||
Exercise of stock options and ESPP, Shares | 7,075,000 | |||||
Vesting of ZSUs, net of tax withholdings | (2,901) | $ 1 | (2,130) | $ (772) | ||
Vesting of ZSUs, net of tax withholdings | 27,966,000 | |||||
Contributed capital, related to common control acquisition | (109) | 1,854 | (1,963) | |||
Stock-based compensation expense | 129,591 | 129,591 | ||||
Stock-based compensation expense, Shares | 717,000 | |||||
Vesting of common stock following the early exercise of options | 170 | 170 | ||||
Repurchases of common stock | (98,902) | (98,902) | ||||
Repurchases of common stock, Shares | (38,001,000) | |||||
Retirements of treasury stock | 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 | |||||
Exercise of stock options and ESPP | 5,921 | 5,921 | ||||
Exercise of stock options and ESPP, Shares | 6,989,000 | |||||
Vesting of ZSUs, net of tax withholdings | (3,423) | (2,582) | (841) | |||
Vesting of ZSUs, net of tax withholdings | 30,794,000 | |||||
Stock-based compensation expense | 111,824 | 111,824 | ||||
Repurchases of common stock | (136,080) | (136,080) | ||||
Repurchases of common stock, Shares | (54,550,000) | |||||
Retirements of treasury stock | 235,863 | (235,863) | ||||
Net income (loss) | (108,173) | (108,173) | ||||
Other comprehensive income (loss) | (76,306) | (76,306) | ||||
Ending balance, Value at Dec. 31, 2016 | 1,580,664 | $ 6 | 3,349,708 | (128,694) | (1,640,356) | |
Ending balance, Shares at Dec. 31, 2016 | 886,850,000 | |||||
Exercise of stock options and ESPP | 8,769 | 8,769 | ||||
Exercise of stock options and ESPP, Shares | 5,365,000 | |||||
Vesting of ZSUs, net of tax withholdings | (21,719) | (427) | (21,292) | |||
Vesting of ZSUs, net of tax withholdings | 14,768,000 | |||||
Stock-based compensation expense | 64,515 | 64,515 | ||||
Repurchases of common stock | (101,036) | $ (1) | (101,035) | |||
Repurchases of common stock, Shares | (36,323,000) | |||||
Retirements of treasury stock | $ 122,327 | (122,327) | ||||
Adoption of ASU 2016-09 | 48,211 | 3,935 | 44,276 | |||
Net income (loss) | 26,639 | 26,639 | ||||
Other comprehensive income (loss) | 35,197 | 35,197 | ||||
Ending balance, Value at Dec. 31, 2017 | $ 1,641,240 | $ 5 | $ 3,426,500 | $ (93,497) | $ (1,691,768) | |
Ending balance, Shares at Dec. 31, 2017 | 870,660,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 26,639 | $ (108,173) | $ (121,510) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 30,294 | 41,770 | 54,315 |
Stock-based compensation expense | 64,515 | 107,461 | 131,575 |
(Gain) loss from sales of investments, assets and other, net | (238) | 26 | (5,558) |
Tax benefits from stock-based awards | 989 | ||
Excess tax (benefits) from stock-based awards | (989) | ||
Accretion and amortization on marketable securities | (636) | 323 | 5,711 |
Change in deferred income taxes and other | 3,780 | (1,988) | (12,693) |
Impairment of intangible assets | 20,677 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (26,417) | 3,834 | 10,148 |
Other assets | (8,124) | (2,501) | (18,096) |
Accounts payable | (3,666) | (3,613) | 10,934 |
Deferred revenue | (7,581) | 13,113 | (64,762) |
Income tax payable | 4,788 | 1,889 | |
Other liabilities | 11,223 | (12,802) | (34,511) |
Net cash provided by (used in) operating activities | 94,577 | 60,016 | (44,447) |
Cash flows from investing activities: | |||
Purchases of short-term investments | (348,594) | (101,091) | |
Sales and maturities of short-term investments | 40,000 | 244,837 | 867,198 |
Acquisition of property and equipment | (9,971) | (10,313) | (7,832) |
Business acquisitions, net of cash acquired | (133,701) | (33,630) | (20,023) |
Proceeds from sale of property and equipment | 273 | 3,209 | 814 |
Proceeds from sale of equity method investment | 10,507 | ||
Other investing activities, net | (8,163) | ||
Net cash provided by (used in) investing activities | (460,156) | 204,103 | 749,573 |
Cash flows from financing activities: | |||
Taxes paid related to net share settlement of stockholders' equity awards | (21,719) | (3,422) | (2,902) |
Repurchases of common stock | (105,013) | (142,596) | (88,409) |
Proceeds from issuance of common stock | 8,769 | 5,921 | 7,567 |
Excess tax benefits from stock-based awards | 989 | ||
Acquisition-related contingent consideration payment | (10,230) | (10,790) | |
Net cash provided by (used in) financing activities | (117,963) | (150,327) | (93,545) |
Effect of exchange rate changes on cash and cash equivalents | 3,945 | (3,542) | (667) |
Net increase (decrease) in cash and cash equivalents | (479,597) | 110,250 | 610,914 |
Cash and cash equivalents, beginning of period | 852,467 | 742,217 | 131,303 |
Cash and cash equivalents, end of period | 372,870 | 852,467 | 742,217 |
Supplemental cash flow information: | |||
Income taxes paid | $ 4,024 | $ 1,033 | $ 2,803 |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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,” or “we” or the “Company”) is a leading provider of social game services. We develop, market and operate social games as live services played on mobile platforms such as iOS and Android and social networking sites such as Facebook. Generally, all of our games are free to play, and we generate revenue through the sale of in-game virtual goods and advertising services. 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 the Company and its 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 compensation expense and evaluation of recoverability of goodwill, intangible assets, and long-lived assets. Actual results could differ materially from those estimates. Changes in our estimated average life of durable virtual goods during 2017 for various games resulted in an increase in revenue and income from operations of $1.3 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. During 2016, changes in our estimated average life of durable virtual goods resulted in a decrease in revenue and income from operations of $0.1 million. In 2016, we also recognized $4.0 million of revenue and income from operations for games that had been discontinued, as there was no further service obligation after the closure of these games. During 2015, changes in our estimated average life of durable virtual goods resulted in an increase in revenue and income from operations of $1.0 million. In 2015, we also recognized $9.9 million of revenue and income from operations for games that been discontinued. These changes in estimates did not impact our reported earnings per share in 2017 or 2016, but had a $0.01 per share impact on our reported loss per share in 2015. Segments We have one operating and reportable segment, which is at the consolidated company level. The Chief Operating Decision Maker (“CODM”), our Chief Executive Officer, manages our operations on a consolidated basis for purposes of assessing performance and allocating resources. 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. 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 Apple iTunes accounts, Google Wallet, PayPal and credit cards. When playing our games through the Facebook platform, players can pay for our virtual currency using Facebook local currency payments. Advance payments from customers for virtual goods 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. For revenue earned through mobile platforms, including iOS and Android, we recognize online game revenue based on the gross amount paid by the player because we are the principal in the transaction. Accordingly, we record the related platform and payment processing fees as cost of revenue in the period incurred. Our players utilize Facebook’s local currency-based payments program to purchase virtual currency in our games. For all payment transactions in our games under Facebook’s local currency-based payments model, 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. 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. 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 from sale of the virtual good. 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 the durable virtual good. 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 the virtual goods for that game ratably over the estimated average period that paying players typically play the applicable game. We have had sufficient data to separately account for consumable and durable virtual goods 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 offered and 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 virtual goods for which revenue is recognized over the estimated average playing period, or the estimated average playing period increases on average, the amount of revenue that we recognize in a current or future period may be reduced, perhaps significantly. Conversely, if the estimated average playing period decreases on average, the amount of revenue that we recognize in a current or future period may be accelerated, 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 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 of our virtual goods quarterly. Advertising. We have contractual relationships with agencies, advertising brokers and directly with 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 principal for the advertisement transaction. However, certain advertisement placements that are directly between us and the end advertiser are recognized gross equal to the price paid to the Company by the end advertiser since we are the principal in the direct advertising arrangement. We recognize advertising revenue for engagement advertisements and offers, mobile advertisements, branded virtual goods and sponsorships and other advertisements as advertisements are delivered to customers as long as evidence of the arrangement exists, the price is fixed or determinable, and collectability as reasonably assured. Price is determined to be fixed or determinable when there is a fixed price included a master contract, insertion order, or a third party statement of advertising activity. 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. 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. For these branded virtual goods and sponsorships, we determine the delivery criteria has been met based on delivery reporting received from third parties. 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. Taxes Collected from Customers. We present taxes collected from customers and remitted to governmental authorities on a net basis within our consolidated statement of operations. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, money market funds, corporate debt and U.S. government-issued obligations with maturities of 90 days or less from the date of purchase. Short-Term Investments Short-term investments consist of corporate debt securities. The fair value of short-term investments is determined as the exit price in the principal market in which we would transact. Based on our intentions regarding our short-term investments, all short-term investments are classified as available-for-sale and are reported 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. We assess whether an other-than-temporary loss on our investments has occurred due to declines in fair value or other market conditions. 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 with the amount of the write-down recorded as a realized loss within 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 short-term investments have been recorded in any of the periods presented. Restricted Cash Restricted cash consists of collateral for royalty agreements and funds held in escrow in accordance with the terms of our business acquisition agreements. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the original invoiced amount less an allowance for any potential uncollectible amounts. 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 conditions that may affect our customers’ ability to pay. Bad debts are written off after all collection efforts have ceased. We do not require collateral from our customers. Property and Equipment, Net Property and equipment, net are recorded at historical cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the improvements or the lease term. The estimated useful lives of property and equipment are as follows: Property and Equipment Useful Life Computer equipment 3 years Software 2 to 3 years Building and building improvements 7 to 39 years Furniture and fixtures 2 years Leasehold improvements Shorter of useful life (generally up to 7 years) or remaining 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 (if applicable), to the tangible assets, liabilities and identifiable intangible assets acquired based on their estimated fair values at the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Determining the fair value of such items requires judgment, including estimating future cash flows or the cost to recreate an acquired asset. If actual results are lower than initial estimates, we could be required to record impairment charges in the future. Acquired intangible assets with definite lives are amortized over their estimated useful lives generally on a straight-line basis, unless evidence indicates a more appropriate method. Intangible assets with indefinite lives are not amortized but rather tested for impairment annually, or more frequently if circumstances indicate an impairment may exist. Acquisition-related expenses are expensed as incurred. During the one-year period beginning with the acquisition date, we may record certain purchase accounting adjustments related to the fair value of assets acquired and liabilities assumed against goodwill. After the final determination of the fair value of assets acquired or liabilities assumed, any subsequent adjustments are recorded to our consolidated statements of operations. The fair value of contingent consideration liabilities assumed from an acquisition are remeasured each reporting period and the changes in the fair value is recorded within operating expenses in our consolidated statement of operations each reporting period. Software Development Costs We review internal use software development costs associated with new games or updates to existing games on a quarterly basis to determine if the costs qualify for capitalization. Our studio teams follow an agile development process, whereas the preliminary project stage remains ongoing until just prior to worldwide launch, at which time final feature selection occurs. As such, the development costs are expensed as incurred to research and development in our consolidated statement of operations. We did not capitalize any software development costs in 2017, 2016 or 2015 Goodwill and Indefinite-Lived Intangible Assets Goodwill and indefinite-lived intangible assets 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 by comparing the fair value of our single reporting unit to its carrying value. If the carrying value of the reporting unit exceeds its fair value, then we record the amount by which the carrying value exceeds its fair value, if any, as impairment to goodwill. For our annual goodwill impairment analysis performed in the fourth quarter of 2017, our estimates of fair value were based on the market approach, which estimated the fair value of our reporting unit based on the Company’s market capitalization at the annual testing date. The result of the quantitative evaluation indicated that the estimated fair value of the reporting unit exceeded its carrying value. Accordingly, we concluded goodwill was not impaired. At least annually, we test recoverability of indefinite-lived intangible assets using a qualitative approach that considers whether it is more likely than not that the fair value of the intangible asset exceeds its carrying value. If qualitative factors indicate that it is more likely than not that the indefinite-lived intangible asset is impaired, a quantitative analysis is performed and the amount of any impairment loss recorded, if any, is measured as the difference between the carrying value and the fair value of the impaired intangible asset. We concluded that indefinite-lived intangible assets were not impaired as of December 31, 2017. Intangible Assets Intangible assets generally consist of definite-lived intangibles assets acquired from a prior business combination and are carried at historical cost less accumulated amortization. Amortization is generally recorded on a straight-lined basis, unless another method is deemed more appropriate, over the estimated useful lives of the assets, generally 12 to 84 months. Impairment of Long-Lived Assets Long-lived assets, including other intangible assets not considered 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 an 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. In the third quarter of 2016, we recorded an $18.2 million and $2.5 million impairment charge associated with developed technology previously acquired from Rising Tide and Zindagi, respectively. There were no impairment charges recorded during 2017 or 2015. Licenses and Royalties We obtain licenses from third parties for use of their brands, properties and other licensed content in our games (e.g., Hit It Rich! Slots against future royalty obligations that would otherwise become payable. Each quarter, we evaluate the recoverability of our prepaid royalties as well as any contractual commitments Stock-Based Compensation Expense We recognize stock-based compensation expense for ZSUs based on grant date fair value on a straight-line basis over the requisite service period for the entire award. For certain performance based ZSUs, we recognize the stock-based compensation expense based upon the grant date fair value on an accelerated attribution basis over the requisite service period of the 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 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 rate in effect at the time of grant with maturities equal to the stock option award’s expected life. During the fourth quarter of 2015, we changed the basis of estimating our expected volatility from using peer group data to using our own historical calculated rate. If any of the assumptions used in the Black-Scholes model changes significantly, stock-based compensation expense for future awards may differ materially compared to awards previously granted previously. We record stock-based compensation expense for stock options on a straight-line basis over the vesting term. Stock-based compensation expense is recorded net of forfeitures as they are occur. 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 at the end of the reporting period; the effect of future changes in tax laws or rates are not anticipated (refer to the header “Tax Cuts and Jobs Act” earlier in MD&A for further discussion on the impact to the enacted tax laws in 2017). 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 tax. In January 2018, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) SAB 118 ASC 740 Income Taxes SAB 118 In accordance with SAB 118 We have determined that we cannot make a reasonable estimate of the income tax effect with respect to global intangible low-taxed income (GILTI) provisions of the 2017 Tax Act. The GILTI provisions allow companies to make an accounting policy election to either (i) account for GILTI as a component of tax expense in the period in which the entity is subject to the rules or (ii) account for GILTI in the entity’s measurement of deferred taxes. Our ultimate accounting policy election will depend on our estimates of future taxable income related to GILTI. Refer to the Note 7 – “Income Taxes” for further discussion on the impact of tax laws enacted during 2017. 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 re-measured into U.S. dollars at reporting period-end exchange rates and foreign currency denominated nonmonetary assets and liabilities are re-measured into U.S. dollars at historical exchange rates. Gains or losses from foreign currency re-measurement of monetary assets and liabilities and transaction 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 exchange rates at the prevailing balance sheet date to translate assets and liabilities, and the average exchange rates during the period 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 investments, accounts receivable and lease receivables. Substantially all of our cash and cash equivalents are maintained with three financial institutions with high credit standings. We perform periodic evaluations of the relative credit standing of these institutions. Accounts receivable and lease receivables 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 or tenant’s ability to meet its financial obligations, we record a specific allowance as a reduction to the accounts or lease receivable balance to reduce the receivable to its net realizable value. Apple, Google and Facebook are significant distribution, marketing, promotion and payment platforms for our social games. MoPub is a significant advertising partner that serves advertisements in our games. A significant portion of our 2017, 2016 and 2015 revenue was generated from players who accessed our games through these platforms or were served advertisements in our games on behalf of advertisers. As of December 31, 2017 and December 31, 2016, 34% and 27% of our accounts receivable, respectively, were amounts owed to us by Apple, 19% and 23% of our accounts receivable, respectively, were amounts owed to us by Google, 10% and 12% of our accounts receivable, respectively, were amounts owed to us by Facebook, and 15% and 10% of our accounts receivable, respectively, were amounts owed to us by MoPub. 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 $147.2 million, $132.5 million and $128.9 million for 2017, 2016 and 2015 respectively. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers (Topic 606), Based on our assessment of the standard, a key change in the standard that impacts our revenue recognition relates to the explicit collectability threshold a contract must meet before revenue can be recognized. For certain advertising arrangements where we have assessed that collectability is not reasonably assured due to unfavorable payment terms or a history of slow collections, the current practice is to defer revenue recognition until payment is received. However, under the new standard, we will be required to make an assessment of collectability at the inception of the contract and if deemed probable for collection, recognize revenue at the amount we expect to be entitled to as advertisements are delivered, which will result in an acceleration in revenue recognition compared to the current method. Another change in the standard that impacts our revenue recognition relates to the distinction between functional intellectual property and symbolic intellectual property for licensing arrangements. The current practice is to recognize revenue when a license is delivered (i.e. at a point in time). However, under the new standard, we will be required to make a distinction based on the nature of the license and recognize revenue at a point in time for functional intellectual property and over time for symbolic intellectual property. For our licensing arrangements of symbolic intellectual property (such as trademarks, brands and character images), this will result in a deceleration of revenue recognition when compared to the current method. We previously disclosed the standard would also have an impact on our software licensing related to NaturalMotion technology, which is currently recognized as revenue over time, rather than a point in time. However, as a result of a restructuring plan we implemented in the second quarter of 2017, we will no longer provide maintenance services for any new software licenses sold after June 30, 2017. Therefore, the requirement to estimate the standalone selling price of software licenses separate from any associated maintenance services and recognize revenue for the license when control is transferred will only apply to a small subset of our existing licensing contracts. While this change will result in an acceleration in revenue recognition compared to the current method, the impact will not be material. As a result of adoption, we expect to record a transition adjustment in the range of $3.0 to $5.0 million. We do not, however, anticipate significant changes to our current business processes and systems to support the adoption of the standard in the first quarter of 2018. Additionally, we are finalizing the required disclosures, including the disaggregation of revenue, reconciliation of contract balances and significant judgments used to allow users of our financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with our customers. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” In |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2017 | |
Cash And Cash Equivalents [Abstract] | |
Short-Term Investments | 2. Short-Term Investments The following tables summarize our amortized cost, gross unrealized gains and losses and fair value of our short-term investments as of December 31, 2017 (in thousands): December 31, 2017 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Corporate debt securities $ 308,684 $ — $ (178 ) $ 308,506 Total available-for-sale short-term investments $ 308,684 $ — $ (178 ) $ 308,506 We had no available-for-sale short-term investments securities as of December 31, 2016. All of our available-for-sale short-term investments have contractual maturities of one year or less as of December 31, 2017. Changes in market interest rates and bond yields cause our short-term investments to fall below their cost basis, resulting in unrealized losses. As of December 31, 2017, we had unrealized losses of $0.2 million related to short-term investments that had a fair value of $143.0 million. At December 31, 2017, none of these investments were in a material continuous unrealized loss position for more than 12 months. As of December 31, 2017, we did not consider any of our short-term investments to be other-than-temporarily impaired. We do not intend to sell, nor do we believe it is more likely than not that we will be required to sell, any of the securities in an unrealized loss position. 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 the amortized cost basis. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements Our financial assets consist of cash equivalents, short-term investments and accounts receivable. Short-term investments and cash equivalents, which consist of money market funds, U.S government and government agency debt securities and corporate debt securities, are reported at fair value. Accounts receivable, net is stated at its net realizable amount, which approximates fair value. Our financial liabilities consist of accounts payable and accrued liabilities, which are stated at the invoiced or estimated payout amount, respectively, which approximates fair value, as well as contingent consideration obligations as a result of prior business acquisitions, which are reported at fair value. As of December 31, 2016, our contingent consideration liability represented the estimated fair value of the additional consideration payable in connection with our acquisitions of Zindagi Games, Inc. (“Zindagi”) in the first quarter of 2016 and PuzzleSocial, Inc. (“PuzzleSocial”) in the third quarter of 2016. We initially estimated the acquisition date fair value of the contingent consideration liabilities using discounted cash flow models, and applied a discount rate that appropriately captured a market participant’s view of the risk associated with the respective obligations. The significant unobservable inputs used in the fair value measurement of the acquisition-related contingent consideration payable were forecasted future cash flows, the timing of those cash flows and the risk-adjusted discount rate for each contingent obligation. During the second quarter of 2017, it was determined the future performance of the acquired games would not meet the required performance targets. With regards to PuzzleSocial, as of December 31, 2017, we continue to not expect the future performance to meet the required performance targets for the acquisition. Accordingly, the estimated contingent consideration liability for PuzzleSocial remained at zero as of December 31, 2017. With regards to the Zindagi matter, refer to Note 14 – “Commitments and Contingencies”, which further discusses a settlement that was reached in the fourth quarter of 2017 with the prior owners. The change in fair value to the contingent consideration for both acquisitions during 2017 resulted in a net benefit of $0.9 million recorded to the statement of operations during the year. The net benefit was recognized within research and development expense in our consolidated statement of operations. We estimate fair value as the exit price, which represents 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. The valuation techniques used to measure the fair value of the Company’s 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, 2017 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 177,577 $ — $ — $ 177,577 Corporate debt securities — 44,923 — 44,923 Short-term investments: Corporate debt securities — 308,506 — 308,506 Total financial assets $ 177,577 $ 353,430 $ — $ 531,006 Liabilities: Contingent consideration $ — $ — $ — $ — December 31, 2016 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 439,330 $ — $ — $ 439,330 U.S. government and government agency debt securities — 19,987 — 19,987 Corporate debt securities — 269,768 — 269,768 Total financial assets $ 439,330 $ 289,755 $ — $ 729,085 Liabilities: Contingent consideration $ — $ — $ 901 $ 901 We did not have any transfers between valuation levels from December 31, 2016 to December 31, 2017. The following table presents the activity for the year ended December 31, 2017 related to our Level 3 liabilities (in thousands): Level 3 Liabilities: Zindagi PuzzleSocial Total Contingent consideration liability – December 31, 2016 $ 180 $ 721 $ 901 Fair value adjustments (180 ) (721 ) (901 ) Contingent consideration liability – December 31, 2017 $ — $ — $ — |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 4. Property and Equipment, Net Property and equipment, net consist of the following (in thousands): December 31, December 31, 2017 2016 Computer equipment $ 21,583 $ 27,046 Software 32,509 31,102 Land 89,130 89,130 Building and building improvements 199,070 197,689 Furniture and fixtures 10,376 10,494 Leasehold improvements 7,965 8,071 Total property and equipment, gross $ 360,633 $ 363,532 Less accumulated depreciation (94,044 ) (94,093 ) Total property and equipment, net $ 266,589 $ 269,439 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. During the first and second quarters of 2016, $0.4 million and $1.2 million of the assets meeting held for sale criteria were sold, respectively. During the second quarter of 2016, we finalized the sale of these assets and decreased the fair value of the assets less estimated costs to sell to $2.9 million, resulting in a loss of $0.3 million, which was recorded in other income (expense), net in our consolidated statement of operations. During the third quarter of 2016, we collected $1.3 million in cash related to the remaining balance of assets meeting the held for sale criteria. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | 5. Acquisitions 2017 Acquisitions Acquisition of Solitaire Mobile Gaming Applications On February 14, 2017, we purchased Solitaire mobile game applications (“ Solitaire The following table summarizes the purchase date fair value of acquired net intangible assets (excluding the noncompetition agreement) from Harpan (in thousands): Total Developed technology, useful life of 5 years $ 20,471 Goodwill 14,610 Total $ 35,081 Goodwill, which is deductible for tax purposes, represents the excess of the purchase price over the fair value of the net intangible assets acquired and is primarily attributable to the expected synergies at the time of the acquisition. Acquisition of Peak Casual Card Game Division On December 12, 2017, we acquired the casual card game division of Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (“Peak Games”) to expand our card game portfolio, and in connection with the transaction, executed noncompetition agreements with Peak Games and its founder for a term of three years subsequent to the closing date. The total consideration paid to Peak Games was approximately $99.7 million in cash, of which $98.6 million was allocated to the business combination, $1.0 million was allocated to the noncompetition agreement with a useful life of three years and the remaining $0.1 million was allocated to a transition service agreement with Peak Games for certain data and reporting services over the next twelve months. The following table summarizes the purchase date fair value of the net tangible assets, intangible assets (excluding the noncompetition agreement) and the related goodwill acquired from Peak Games (in thousands): Total Developed technology, useful life of 5 years $ 24,000 Trade names, useful life of 7 years 2,000 Goodwill 72,120 Net tangible assets acquired 500 Total assets acquired $ 98,620 Goodwill, which is 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 expected synergies at the time of the acquisition. Transaction costs incurred by the Company in connection with the Peak and Solitaire The results of operations for the games acquired from Peak Games and Harpan 2016 Acquisitions Acquisition of Zindagi On January 1, 2016, we acquired the assets of Zindagi, a provider of social games, for purchase consideration of approximately $13.8 million, which consisted of cash paid of $12.5 million (net of prepaid compensation expense of $2.5 million) and contingent consideration with a fair value of $1.3 million as of March 31, 2016. The contingent consideration was originally payable based on the achievement of certain future performance targets during the three year period following the acquisition date, with a maximum of $60.0 million. We record changes in the fair value of contingent consideration liabilities within operating expenses in our consolidated statement of operations during the period in which a change in the estimate of fair value is made. As discussed further at Note 14 – “Commitments and Contingencies” and Note 3 – “Fair Value Measurements”, a settlement was reached during the fourth quarter of 2017 to settle a number of claims from the prior owners of the acquired assets. We acquired Zindagi to accelerate our ability to execute against new opportunities in Slots and other game genres. The following table summarizes the purchase date fair value of intangible assets acquired from Zindagi (in thousands, unaudited): Total Developed technology, useful life of 3 years $ 3,257 Goodwill 10,503 Total $ 13,760 Goodwill, which is deductible for tax purposes, represents the excess of the purchase price over the fair value of the intangible assets acquired, and is primarily attributable to the assembled workforce of the acquired business and expected synergies at the time of the acquisition. Acquisition of PuzzleSocial On July 1, 2016, we acquired 100% of the equity interests of PuzzleSocial, a provider of mobile crossword puzzle games, for purchase consideration of approximately $20.4 million, which consisted of cash paid of $20.0 million and contingent consideration with a fair value of $0.4 million as of the acquisition date (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 two and a half year period following the acquisition date, with a maximum of $42.0 million. We record changes in the fair value of contingent consideration liabilities within operating expenses in our consolidated statement of operations during the period in which a change in the estimate of fair value is made. We acquired PuzzleSocial as its crossword puzzle game complements our existing Words With Friends The following table summarizes the purchase date fair value of net tangible and intangible assets acquired from PuzzleSocial (in thousands, unaudited): Total Developed technology, useful life of 4.5 years $ 6,923 Customer base, useful life of 1 year 3,499 Net tangible assets acquired 2,144 Goodwill 11,811 Deferred tax liabilities (3,948 ) Total $ 20,429 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.Transaction costs incurred by the Company in connection with the Zindagi and PuzzleSocial acquisitions, including professional fees, were $0.5 million, of which $0.2 million was included in our consolidated statement of operations in 2015 related to the Zindagi acquisition and the remaining $0.3 million was included in our consolidated statement of operations in 2016. The results of operations for the acquisitions of Zindagi and PuzzleSocial have been included in our consolidated statement of operations since the dates of acquisition. Pro forma results of operations related to our acquisitions have not been presented as they is not material to our 2017 consolidated statements. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | 6. Goodwill and Intangible Assets, Net The following table presents the changes to goodwill from December 31, 2015 to December 31, 2017 (in thousands): Goodwill – December 31, 2015 (1) $ 657,671 Additions 23,191 Foreign currency translation and other adjustments ( 2 ) (67,527 ) Goodwill – December 31, 2016 (1) $ 613,335 Additions 86,730 Foreign currency translation adjustments 30,399 Goodwill – December 31, 2017 ( 1 ) $ 730,464 (1) There are no accumulated impairment losses at the beginning or end of any period presented. ( 2 ) The foreign currency translation adjustments are primarily related to translation gains (losses) on goodwill associated with the acquisition of NaturalMotion denominated in British pounds. The other adjustments include 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 intangible assets as of December 31, 2017 are as follows (in thousands): December 31, 2017 Gross Carrying Accumulated Net Book Value Amortization Value Developed technology $ 197,908 $ (147,427 ) $ 50,481 Trademarks, branding and domain names 18,272 (10,152 ) 8,120 Noncompetition agreements 8,390 (3,079 ) 5,311 Acquired lease intangibles 5,708 (5,362 ) 346 Total $ 230,278 $ (166,020 ) $ 64,258 The details of our intangible assets as of December 31, 2016 are as follows (in thousands): December 31, 2016 Gross Carrying Accumulated Net Book Value Amortization Value Developed technology $ 150,826 $ (132,123 ) $ 18,703 Trademarks, branding and domain names 16,290 (10,063 ) 6,227 Acquired lease intangibles 5,708 (5,208 ) 500 Total $ 172,824 $ (147,394 ) $ 25,430 Our trademarks, branding and domain names intangible assets include $6.1 million of indefinite-lived intangible assets as of December 31, 2017 and December 31, 2016. The remaining assets were, and continue to be, amortized on a straight-line basis. As of December 31, 2017, the weighted-average remaining useful lives of our acquired intangible assets are 4.3 years for developed technology, 7.0 years for trademarks, branding, and domain names, 2.3 years for acquired lease intangibles, 1.5 years for noncompetition agreements, and 4.1 years in total, for all acquired intangible assets. Amortization expense related to other intangible assets for 2017, 2016 and 2015 were $16.2 million, $29.0 million – exclusive of a $20.7 million impairment charge – and $27.4 million, respectively. As of December 31, 2017, future amortization expense related to the intangible assets that is expected to be recognized as shown below (in thousands): Year ending December 31: 2018 $ 17,807 2019 12,965 2020 11,712 2021 9,315 2022 5,768 Thereafter 571 Total $ 58,138 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes On December 22, 2017, the 2017 Tax Act was enacted into law. Beginning January 1, 2018, the 2017 Tax Act reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, creates new taxes on certain foreign sourced earnings, repeals the Alternative Minimum Tax (“AMT”), and expands the number of individuals whose compensation is subject to a $1.0 million cap on deductibility, amongst other changes. In certain cases, as described below, we have made a reasonable estimate of the effects on our existing deferred tax balances and refundable AMT credit. In other cases, we have not been able to make a reasonable estimate and continue to account for those items based on our existing accounting under ASC 740 Income Taxes For items which we have been able to determine a reasonable estimate, we recognized a provisional tax benefit of $5.0 million during the fourth quarter of 2017 as a result of the 2017 Tax Act’s enactment, which is included as a component of the provision for income tax. The components of the provisional tax benefit recognized include: Deferred tax assets and liabilities . Certain deferred tax assets and liabilities have been re-measured based on the rates at which they are expected to reverse in the future, which is generally 21%. However, we are still analyzing certain aspects of the 2017 Tax Act and refining our calculations, which could affect the measurement of these balances or give rise to new deferred tax amounts. The related provisional income tax benefit recorded to the consolidated statement of operations for the year ended December 31, 2017, net of valuation allowance, was $2.4 million. AMT credit. As part of the 2017 Tax Act, corporate AMT was repealed. AMT credits generated by the Company in previous years are refundable in tax years beginning after 2017 and before 2022 with any remaining credits being fully refundable in 2022. The related provisional income tax benefit recorded to the consolidated statement of operations for the year ended December 31, 2017 for the AMT credit refund was $2.6 million. The receivable for the refundable AMT credit was recorded to non-current other assets within the consolidated balance sheet as of December 31, 2017. Officer compensation . For tax years beginning after December 31, 2017, the 2017 Tax Act expanded the number of individuals whose compensation is subject to a $1.0 million cap on deductibility and includes performance-based compensation (such as bonuses) in the calculation. As a result, the Company recorded a provisional amount to reduce the future tax benefit related to officers’ stock-based compensation. However, there was no net impact to the provision for income tax as the provisional amount was offset by an equal reduction in the Company's deferred tax asset valuation allowance. One-time transitional tax. As part of the 2017 Tax Act, total foreign earnings and profits (“E&P”) after 1986, that were previously deferred from U.S. federal taxation, are subject to a one-time tax on the mandatory deemed repatriation of foreign earnings. The Company’s provisional analysis of the one-time transition tax resulted in no additional taxes being owed due to the overall accumulated E&P deficit. With respect to global intangible low-taxed income (“GILTI”) provisions of the 2017 Tax Act, the Company is continuing to evaluate how the provisions will be accounted for. The GILTI provisions allow companies to make an accounting policy election to either (i) account for GILTI as a component of tax expense in the period in which the entity is subject to the rules or (ii) account for GILTI in the entity’s measurement of deferred taxes. As of December 31, 2017, the Company has not elected a method due to its continuing analysis of the GILTI provisions. The elected method will depend, in part, on analyzing global income to determine whether the Company expects to have future U.S. inclusions in its taxable income related to GILTI and, if so, the impact that is expected. Income (loss) before income taxes consists of the following for the periods shown below (in thousands): Year Ended December 31, 2017 2016 2015 United States $ (6,081 ) $ (62,037 ) $ (83,432 ) International 43,664 (42,694 ) (46,750 ) Total $ 37,583 $ (104,731 ) $ (130,182 ) The provision for (benefit from) income taxes consists of the following for the periods shown below (in thousands): Year Ended December 31, 2017 2016 2015 Current: Federal $ (2,132 ) $ (30 ) $ (30 ) State 142 2 (2,863 ) Foreign 13,562 7,178 3,817 Total current tax expense $ 11,572 $ 7,150 $ 924 Deferred: Federal $ (1,231 ) $ (2,809 ) $ (8,818 ) State 300 (20 ) (504 ) Foreign 303 (879 ) (274 ) Total deferred tax expense (benefit) $ (628 ) $ (3,708 ) $ (9,596 ) Provision for (benefit from) income taxes $ 10,944 $ 3,442 $ (8,672 ) The reconciliation of federal statutory income tax provision (benefit) to our effective income tax provision is as follows (in thousands): Year Ended December 31, 2017 2016 2015 Expected provision (benefit) at U.S. federal statutory rate of 35% $ 13,154 $ (36,656 ) $ (45,564 ) State income taxes - net of federal benefit 142 2 (2,863 ) Income taxed at foreign rates (3,643 ) 20,112 18,406 Equity-based compensation (2,898 ) 4,295 1,125 Tax reserve for uncertain tax positions 3,101 2,382 1,827 Change in valuation allowance (51,976 ) 14,786 17,526 Impact of change in enacted tax rates 48,296 69 (18 ) Acquisition costs — 110 650 Contingent consideration (252 ) (2,781 ) — Officer's compensation limitation 2,582 — — Investment in subsidiaries 1,676 — — Other 762 1,123 239 $ 10,944 $ 3,442 $ (8,672 ) Our provisional analysis of the one-time transition tax liability for our foreign subsidiaries enacted by the 2017 Tax Act did not result in additional taxes being owed, considering our accumulated deficit position at December 31, 2017. Additionally, no other income taxes (state or foreign) have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations. As of December 31, 2017, the cumulative amount of earnings upon which income taxes have not been provided is approximately $48.8 million. Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis using enacted tax rates in effect for the year in which the differences are expected to be reversed. Our deferred tax assets and liabilities are as follows (in thousands): Year Ended December 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 66,680 $ 53,474 Tax credit carryforwards 98,718 52,564 Acquired intangible assets 25,692 26,110 Stock-based compensation 7,467 16,087 Accrued expenses 5,505 8,605 Other accrued compensation 4,747 5,059 Charitable contributions 2,886 4,495 State taxes 248 3,168 Deferred revenue 312 481 Other 423 — Total deferred tax assets $ 212,678 $ 170,043 Less: Valuation allowance (209,652 ) (164,907 ) Deferred tax assets, net of valuation allowance $ 3,026 $ 5,136 Deferred tax liabilities: Goodwill $ (3,210 ) $ (3,396 ) Deferred rent (1,073 ) (69 ) Depreciation (3,839 ) (7,215 ) Other — (247 ) Total deferred tax liabilities $ (8,122 ) $ (10,927 ) Net deferred taxes $ (5,096 ) $ (5,791 ) As a result of the adoption of ASU 2016-09 in the first quarter of 2017, the Company recognized the previously unrecognized excess tax benefits from stock-based compensation which increased the net operating loss and tax credit carryforward deferred tax assets and equally offsetting valuation allowance by $97.3 million. Additionally, as a result of the 2017 Tax Act, the Company’s deferred tax assets and liabilities have been re-measured with the enacted tax rate of 21% as of December 31, 2017, while the deferred tax assets and liabilities as of December 31, 2016 were measured with the then enacted tax rate of 35%. 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 in future periods as of December 31, 2017. Net operating loss and tax credit carryforwards as of December 31, 2017 are as follows (in thousands): Amount Expiration years Net operating losses, federal $ 409,273 2029 – 2036 Net operating losses, state 299,631 2021 – 2036 Tax credits, federal 89,218 2030 – 2037 Tax credits, state 82,617 2019 – indefinite 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, 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 Additions based on tax positions related to 2016 9,043 Additions for tax positions of prior years 68 Reductions for tax positions of prior years (856 ) December 31, 2016 $ 151,100 Additions based on tax positions related to 2017 8,598 Additions for tax positions of prior years 427 Decreases related to expiration of prior year tax positions (31 ) Decreases related to settlements of prior year tax positions (54 ) December 31, 2017 $ 160,040 We classify uncertain tax positions as non-current unrecognized 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 as an offset to the asset on the consolidated balance sheet. As of December 31, 2017, $151.0 million of our gross unrecognized tax benefits were recorded as a reduction of the related deferred tax assets and the remaining $9.0 million of our gross unrecognized tax benefits were recorded as non-current liabilities in our consolidated balance sheets. If the balance of gross unrecognized tax benefits of $160.0 million as of December 31, 2017 was realized, this would have resulted in a tax benefit of $9.0 million within our provision for income taxes at such time. If the balance of gross unrecognized tax benefits of $151.1 million as of December 31, 2016 was realized, this would have resulted in a tax benefit of $10.3 million within our provision of income taxes at such time. 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 recorded to the consolidated statements of operations during 2017 and 2016, were $0.3 million and $0.1 million, respectively, and the amount of interest and penalties accrued as of December 31, 2017 and 2016 was $1.0 million and $0.7 million, respectively. There were no interest and penalties recorded to the consolidated statements of operations during 2015. 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 U.S., 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 and Non-Current L
Other Current and Non-Current Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Current and Non-Current Liabilities | 8. Other Current and Non-Current Liabilities Other current liabilities consist of the following (in thousands): December 31, December 31, 2017 2016 Accrued accounts payable $ 38,046 $ 24,119 Accrued compensation liability 33,815 22,554 Accrued restructuring liability 3,674 4,987 Accrued payable from acquisitions 12,800 5,990 Accrued lease incentive obligation 20,059 — Other current liabilities 14,695 18,104 Total other current liabilities $ 123,089 $ 75,754 Accrued compensation liability represents employee bonus and other payroll withholding expenses. Other current liabilities include various expenses that we accrue for transaction taxes, customer deposits and accrued vendor expenses. Other non-current liabilities consist of the following (in thousands): December 31, December 31, 2017 2016 Accrued payable from acquisitions $ 20,000 $ 3,951 Accrued restructuring liability 10,856 14,485 Unrecognized tax liability 8,975 52,779 Other non-current liabilities 9,081 4,381 Total other non-current liabilities $ 48,912 $ 75,596 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 9. Restructuring We recorded the following net restructuring charges within our consolidated statements of operations for the years presented (in thousands): Year Ended December 31, 2017 2016 2015 Cost of revenue $ — $ — $ 1,066 Research and development 2,347 124 14,081 Sales and marketing 149 — 787 General and administrative 688 1,814 20,547 Total restructuring charges $ 3,184 $ 1,938 $ 36,481 Significant restructuring activities related to the Company’s employees and other charges, summarized by plan, are presented in the table below (in thousands): Q4 2017 Q3 2017 Q2 2017 Q2 2015 Restructuring Plan Restructuring Plan Restructuring Plan Restructuring Plan Total Restructuring liability – December 31, 2015 $ — $ — $ — $ 26,406 $ 26,406 Restructuring expense and adjustments — — — 926 926 Cash payments — — — (7,944 ) (7,944 ) Restructuring liability – December 31, 2016 — — — 19,388 19,388 Restructuring expense and adjustments 1,466 918 1,242 (451 ) 3,175 Cash payments (1,095 ) (911 ) (1,242 ) (4,785 ) (8,033 ) Restructuring liability – December 31, 2017 $ 371 $ 7 $ — $ 14,152 $ 14,530 Cumulative costs to date, as of December 31, 2017 $ 1,466 $ 918 $ 1,242 $ 34,324 $ 37,950 Total costs expected to be incurred, as of December 31, 2017 $ 2,610 $ 920 $ 1,252 $ 34,324 $ 39,106 Q4 2017 Restructuring Plan During the fourth quarter of 2017, we implemented a restructuring plan, which included a reduction in work force to reduce the Company’s long-term cost structure. As a result of ongoing initiatives associated with this restructuring plan, we recorded $1.5 million of expense in the year ended December 31, 2017, which is included in operating expenses in our consolidated statement of operations. The $1.5 million restructuring charge is primarily comprised of employee severance costs. The remaining costs are expected to be paid out within the next 1.9 years. Q3 2017 Restructuring Plan During the third quarter of 2017, we implemented a restructuring plan, which included a reduction in work force to reduce the Company’s long-term cost structure. As a result of ongoing initiatives associated with this restructuring plan, we recorded $0.9 million of expense in the year ended December 31, 2017, which is included in operating expenses in our consolidated statement of operations. The $0.9 million restructuring charge is comprised of $0.6 million of employee severance costs and $0.3 million of other costs. The remaining costs are expected to be paid out over the next quarter. Q2 2017 Restructuring Plan During the second quarter of 2017, we implemented a restructuring plan, which included a reduction in work force to reduce the Company’s long-term cost structure. As a result of ongoing initiatives associated with this restructuring plan, we recorded expense of $1.2 million in the year ended December 31, 2017, which is included in operating expenses in our consolidated statement of operations. The $1.2 million restructuring charge is comprised of $1.1 million of employee severance costs and $0.1 million of other costs. There remaining costs are expected to be paid out over the next quarter. Q2 2015 Restructuring Plan During the second quarter of 2015, we implemented a restructuring plan, which included a reduction in work force to reduce the Company’s long-term cost structure. As a result of ongoing initiatives associated with this restructuring plan, we recorded a net benefit of $0.4 million in the year ended December 31, 2017, which is included in operating expenses in our consolidated statement of operations. The $0.4 million restructuring benefit is comprised of other costs. For the year ended December 31, 2016, we recorded expense of $0.9 million in our consolidated statement of operations, which is comprised of $0.7 million of lease termination costs, $0.1 million of employee severance costs and $0.1 million of other costs. For the year ended December 31, 2015, we recorded expense of $33.8 million in our consolidated statements of operations, which is comprised of $10.7 million of employee severance costs and $23.1 million related to lease termination costs. The remaining costs are expected to be paid within the next 4.4 years. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity Common Stock Our three classes of common stock are Class A, Class B and Class C common stock. The following are the rights and privileges of our classes of common stock: Dividends. The holders of outstanding shares of our Class A, Class B and Class C common stock are entitled to receive dividends out of funds legally available at the times and in the amounts which our Board of Directors may determine. 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, Class B 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, Class B, 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. Liquidation. Upon our liquidation, dissolution or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our Class A, Class B and Class C common stock. Preemptive or Similar Rights. None of our Class A, Class B, or Class C common stock is entitled to preemptive rights or subject to redemption. Conversion. Our Class A common stock is not convertible into any other shares of our capital stock. Each share of our Class B 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 our initial public offering, upon sale or transfer of shares of either Class B or Class C common stock, whether or not for value, each such transferred or sold 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 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 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 and Class C common stock may not be reissued. Stock Repurchases In November 2016, we authorized the 2016 Share Repurchase Program. In 2016, we repurchased 12.3 million shares of our Class A common stock under the repurchase program at a weighted average price of $2.76 per share for a total of $34.2 million. In 2017, we repurchased 36.3 million shares for our Class A common stock under the repurchase program at a weighted average price of $2.78 per share for a total of $101.0 million. In October 2015, we authorized the 2015 Share Repurchase Program. In 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 2016, we repurchased 42.2 million shares of our Class A common stock at a weighted average price of $2.40 for a total of $101.9 million, completing the 2015 repurchase plan put in place in 2015. All of our stock repurchases under the both programs were made through open market purchases under Rule 10b5-1 plans. Equity Incentive Plans and Stock-Based Compensation 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. We recorded stock-based compensation expense related to grants of employee stock options, ZSUs and performance-based awards in our consolidated statements of operations as follows (in thousands): Year Ended December 31, 2017 2016 2015 Cost of revenue $ 1,838 $ 3,720 $ 4,547 Research and development 42,176 84,236 94,548 Sales and marketing 7,281 7,254 7,501 General and administrative 13,220 12,251 24,979 Total stock-based compensation expense $ 64,515 $ 107,461 $ 131,575 Stock Option Activity All stock options granted under the 2011 Plan generally vest over four to five years, with 25% to 20% vesting after one year with the remainder vesting monthly thereafter over 36 to 48 months, respectively. The stock options have a contract term of 10 years and the related expense is determined using the Black-Scholes option pricing model on the date of grant. The following table presents the weighted-average grant date fair value of stock options and related assumptions used to estimate the fair value in our consolidated financial statements: Year Ended December 31, 2017 2016 2015 Expected term, in years 6 6 6 Risk-free interest rates 2.12 % 1.53 % 1.65 % Expected volatility 46 % 50 % 53 % Dividend yield — — — Weighted-average estimated fair value of stock options granted during the year $ 1.75 $ 1.30 $ 1.51 The following table shows stock option activity for 2017 (in thousands, except weighted-average exercise price and remaining contractual term): Outstanding Options Stock Options Weighted- Average Exercise Price Aggregate Intrinsic Value of Stock Options Outstanding Weighted- Average Contractual Term (in years) Balance as of December 31, 2016 36,858 $ 2.08 $ 26,411 6.81 Granted 1,681 3.76 Forfeited, expired and cancelled (3,084 ) 3.63 Exercised (2,491 ) 1.33 Balance as of December 31, 2017 32,964 $ 2.07 $ 64,114 6.32 As of December 31, 2017 Exercisable options 16,880 $ 1.43 $ 43,878 4.11 Vested and expected to vest 32,964 $ 2.07 $ 64,114 6.32 The aggregate intrinsic value of stock options exercised during 2017, 2016 and 2015 was $4.9 million, $8.1 million and $9.1 million, respectively. The total grant date fair value of options that vested during 2017, 2016 and 2015 was $8.0 million, $6.0 million and $10.2 million, respectively. As of December 31, 2017, total unrecognized stock-based compensation expense of $20.8 million related to unvested stock options is expected to be recognized over a weighted-average recognition period of approximately 3.5 years. ZSU Activity ZSUs are granted to eligible employees under the 2011 Plan. In general, ZSU awards vest in annual or quarterly installments over a period of four years, are subject to the employee’s continuing service to us and do not have an expiration date. The cost of ZSUs is determined using the fair value of our common stock on the date of grant. The following table shows a summary of ZSU activity for 2017 (in thousands, except weighted-average fair value): Outstanding ZSUs Weighted- Average Grant Date Aggregate Fair Value Intrinsic Value of Shares (per share) Unvested ZSUs Unvested as of December 31, 2016 59,452 $ 2.66 $ 152,792 Granted 22,210 3.52 Vested (20,774 ) 2.83 Forfeited (15,410 ) 2.67 Unvested as of December 31, 2017 45,478 $ 3.00 $ 181,912 As of December 31, 2017, total unamortized stock-based compensation expense relating to ZSUs amounted to $117.2 million over a weighted-average recognition period of approximately 2.4 years. Performance-Based Awards Certain executives were eligible to receive performance-based ZSUs, which are subject to performance and time-based vesting requirements. The target number of shares of the performance-based awards are adjusted based on our business performance measured against the performance goals approved by the Compensation Committee at the beginning of the performance period. Generally, if the performance criteria are satisfied, one-half of the award vests immediately and the other half vests on the one-year anniversary. Stock-based compensation expense for performance-based ZSUs granted in connection with our executive compensation plan is recorded based on the probability of achievement of certain performance milestones. In 2017, 2016 and 2015, no expense was recorded in connection with shares granted under our executive compensation plan. Certain employees are eligible to receive performance-based ZSUs, which are subject to performance and time-based vesting requirements. The target number of shares of the performance-based awards are adjusted based on our business performance measured against the performance goals approved by the Compensation Committee at the date of employment with the Company. Generally, if the performance criteria are satisfied, 25% of the award will vest immediately or soon after with the remaining vesting ratably for each quarter or six month periods thereafter. Stock-based compensation expense for performance-based ZSUs granted to these employees is recorded based on the probability of achievement of the performance milestones. In 2017, we recorded $2.4 million of stock-based compensation expense related to these performance-based ZSUs. Additionally, during 2017, one performance-based ZSU award was modified to eliminate the performance vesting requirements, thus only requiring time-based vesting. At the time of modification, there was no incremental compensation costs recorded. 2011 Employee Stock Purchase Plan Our 2011 Employee Stock Purchase Plan (“2011 ESPP”), was approved by our Board of Directors in September 2011 and by our stockholders in November 2011 and amended in August 2012. 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, subject to a maximum of 5,000 shares available for purchase on any purchase date. 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 two purchase dates within each annual period, resulting in a six-month and twelve-month look-back. Further, the ESPP contains an automatic reset feature after the first six months of each annual period, 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 for the remaining six months. 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, 2017, there were $2.6 million of employee contributions withheld by the Company. During 2017, the Company recognized $2.3 million of stock-based compensation expense related to the 2011 ESPP. Employee Savings Plan We have a defined contribution plan, which is qualified under Section 401(k) of the Internal Revenue Code. Participating employees may contribute up to 90% of their eligible compensation, or the statutory limit, whichever is lower. In 2017, 2016 and 2015, we contributed one dollar for each dollar a participant contributed, with a maximum contribution of 3% of each employee’s eligible compensation, subject to a maximum total contribution mandated by the IRS. The total expense for these savings plans was $4.5 million, $4.5 million and $4.8 million in 2017, 2016 and 2015, respectively. Common Stock Reserved for Future Issuance As of December 31, 2017, we had reserved shares of common stock for future issuance as follows (in thousands): December 31, 2017 Stock options outstanding 32,964 ZSUs outstanding 45,478 2011 Equity Incentive Plan 126,918 2011 Employee Stock Purchase Plan 92,875 Total 298,235 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) [Text Block] | 11. Accumulated Other Comprehensive Income (Loss) The following table shows a summary of changes in accumulated other comprehensive income (loss) by component from December 31, 2015 to December 31, 2017 (in thousands): Foreign Currency Translation Unrealized Gains on Available- for-Sale Marketable Securities Total Balance as of December 31, 2015 $ (52,261 ) $ (127 ) $ (52,388 ) Other comprehensive income (loss) before reclassifications (76,410 ) 104 (76,306 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss) (76,410 ) 104 (76,306 ) Balance as of December 31, 2016 $ (128,671 ) $ (23 ) $ (128,694 ) Other comprehensive income (loss) before reclassifications 35,352 (155 ) 35,197 Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss) 35,352 (155 ) 35,197 Balance as of December 31, 2017 $ (93,319 ) $ (178 ) $ (93,497 ) |
Net Income (Loss) Per Share of
Net Income (Loss) Per Share of Common Stock | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share of Common Stock | 12. 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. 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. In computing diluted net income (loss) per share, net income (loss) attributable to common shareholders is re-allocated to reflect the potential impact of dilutive securities, including stock options, unvested ZSUs, unvested performance-based ZSUs and ESPP withholdings. For periods in which we have generated a net loss or there is no income attributable to common stockholders, we do not include dilutive securities 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, 2017 2016 2015 Class Class Class Class Class Class Class Class Class A B C A B C A B C BASIC: Net income (loss) attributable to common stockholders – basic $ 23,795 $ 2,204 $ 629 $ (92,988 ) $ (12,660 ) $ (2,525 ) $ (103,628 ) $ (15,153 ) $ (2,729 ) Weighted-average common shares outstanding – basic 776,625 71,925 20,517 755,460 102,850 20,517 779,071 113,923 20,517 Net income (loss) per share attributable to common stockholders – basic $ 0.03 $ 0.03 $ 0.03 $ (0.12 ) $ (0.12 ) $ (0.12 ) $ (0.13 ) $ (0.13 ) $ (0.13 ) DILUTED: Net income (loss) attributable to common stockholders – basic $ 23,795 $ 2,204 $ 629 $ (92,988 ) $ (12,660 ) $ (2,525 ) $ (103,628 ) $ (15,153 ) $ (2,729 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares 629 — — (2,525 ) — — (2,729 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares 2,204 — — (12,660 ) — — (15,153 ) — — Reallocation of net income (loss) to Class B and Class C shares — 180 (20 ) — — — — — — Net income (loss) attributable to common stockholders – diluted $ 26,628 $ 2,384 $ 609 $ (108,173 ) $ (12,660 ) $ (2,525 ) $ (121,510 ) $ (15,153 ) $ (2,729 ) Weighted-average common shares outstanding – basic 776,625 71,925 20,517 755,460 102,850 20,517 779,071 113,923 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 71,925 — — 102,850 — — 113,923 — — Weighted-average effect of dilutive securities: Stock options and employee stock purchase plan 9,879 8,390 — — — — — — — ZSUs 16,935 — — — — — — — — Performance-based ZSUs 1,284 — — — — — — — — Weighted-average common shares outstanding – diluted 897,165 80,315 20,517 878,827 102,850 20,517 913,511 113,923 20,517 Net income (loss) per share attributable to common stockholders – diluted $ 0.03 $ 0.03 $ 0.03 $ (0.12 ) $ (0.12 ) $ (0.12 ) $ (0.13 ) $ (0.13 ) $ (0.13 ) 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, 2017 2016 2015 Stock options and employee stock purchase plan 17,331 28,380 29,412 Restricted shares 349 3,899 8,716 ZSUs 5,087 61,183 63,764 Total 22,767 93,462 101,892 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leases | 13. Leases Rental Income During the second quarter of 2017, the Company entered into an industrial gross lease agreement to provide approximately 287,000 square feet of its office space in San Francisco, California to a tenant for total minimum rental payments of $167.3 million to be received over the term of the lease. The tenant will occupy approximately 43% of the Company owned building, and the agreement provides for escalating rent payments and various lease incentives, including a rent holiday and tenant improvement allowances, that will be straight-lined over the lease term concluding in February 2027. In connection with executing the lease agreement, the Company accrued deferred lease origination costs of $6.5 million. The Company provided the tenant access to the building starting in September 2017and recorded both a lease incentive receivable and obligation to pay for $24.9 million of tenant improvements at that time. Accordingly, the Company commenced its recognition of monthly rental income in September 2017, net of the lease incentives and amortization of the lease origination costs, within other income and expense, net in the consolidated statement of operations. As of December 31, 2017, cash to be received from future minimum rentals for the noncancelable lease term are as follows (in thousands): Year ending December 31: 2018 $ 5,534 2019 11,345 2020 14,369 2021 20,287 2022 20,896 Thereafter 93,982 Total $ 166,413 The Company has other lease and sub-lease arrangements for its owned or leased office facilities, however, the amounts are not material to the consolidated financial statements. Lease Commitments We have entered into operating leases for primarily office facilities. As of December 31, 2017, future minimum lease payments related to the Company’s leases are as follows (in thousands): Year ending December 31: 2018 $ 8,301 2019 7,891 2020 5,777 2021 4,988 2022 1,574 Thereafter — Total $ 28,531 Rent expense on operating leases for facilities for 2017, 2016 and 2015 totaled $5.7 million, $5.3 million and $4.5 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies The amounts represented in the tables below reflect our minimum cash obligations for the respective calendar years based on contractual terms, but do not necessarily represent the periods in which these costs will be expensed in the Company’s consolidated statement of operations. Licensor and Marketing Commitments We have entered into several contracts with licensors that contain minimum contractual and marketing commitments that may not be dependent on any deliverables. As of December 31, 2017, future minimum contractual royalty payments due to licensors and marketing commitments for the licensed products are as follows (in thousands): Year ending December 31: 2018 $ 8,875 2019 8,750 2020 2,250 Thereafter — Total $ 19,875 Other Purchase Commitments We have entered into several contracts primarily for hosting of data systems and other services. As of December 31, 2017, future minimum purchase commitments that have initial or remaining non-cancelable terms are as follows (in thousands): Year ending December 31: 2018 $ 8,048 2019 2,246 2020 383 Thereafter — Total $ 10,677 Excluded from tables above is our uncertain income tax position liability of $9.0 million, as the Company cannot make a reasonably reliable estimate of the period of cash settlement. We also have a legal commitment of $11.9 million related to the settlement of the Zindagi matter, to be paid in the first quarter of 2018, which is not reflected in the tables above. Refer to the header “Legal Matters” below for further discussion. Credit Facility On November 2, 2016, the Company voluntarily terminated the Credit Agreement. Prior to its termination, the Credit Agreement provided the Company with a $200 million revolving line of credit. The Credit Agreement was terminated because it no longer served the Legal Matters The Company is involved in legal and regulatory proceedings on an ongoing basis. Some of these proceedings are in early stages and may seek an indeterminate amount of damages. If the Company believes that a loss arising from such matters is probable and can be reasonably estimated, the Company accrues the estimated liability in its financial statements. If only a range of estimated losses can be determined, the Company accrues an amount within the range that, in its judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, the Company accrues the low end of the range. For proceedings in which an unfavorable outcome is reasonably possible but not probable and an estimate of the loss or range of losses arising from the proceeding can be made, the Company discloses such an estimate, if material. If such a loss or range of losses is not reasonably estimable, the Company discloses that fact. In assessing the materiality of a proceeding, the Company evaluates, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs that may require changes to business practices in a manner that could have a material adverse impact on the Company’s business. Legal expenses are recognized as incurred. Derivative Litigation Since August 3, 2012, eight 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 the Company’s initial public offering in December 2011 and the Company’s secondary offering in April 2012 by allegedly making 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 Beginning on August 16, 2012, four stockholder derivative actions were filed in the U.S. 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 On April 4, 2014, a derivative action was filed in the Court of Chancery of the State of Delaware captioned Sandys v. Pincus, et al. 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. Because the derivative actions are in the early stages of the litigation process, the Company is not in a position to assess whether any loss or adverse effect on the Company’s financial condition is probable or remote, or to estimate the range of potential loss, if any. On February 3, 2017, the Company’s Mayer et al. v. Zynga On March 31, 2017, Umrao Mayer, George Simmons, Zindagi Games, Inc., and Cam Tech Building, LLC initiated an arbitration against the Company. In their Statement of Claims, the claimants asserted five claims for relief, including breach of contracts, breach of the implied covenant of good faith and fair dealing, estoppel, conversion, and declaratory relief with respect to allegedly unlawful Non-Competition, Non-Solicitation and Non-Disparagement agreements entered into with Messrs. Mayer and Simmons (the “Non-Solicitation Agreements”). The primary allegations made by the claimants are that the Company (i) breached an Asset Purchase Agreement dated December 30, 2015 between Zindagi Games, Inc., Messrs. Mayer and Simmons, and the Company (the “Zindagi Acquisition Agreement”) by failing to provide the claimants an opportunity to achieve an earnout payment, (ii) unlawfully withheld an escrow payment due under the Zindagi Acquisition Agreement, (iii) improperly terminated Messrs. Mayer and Simmons on November 29, 2016, (iv) breached a lease agreement, and (v) required Messrs. Mayer and Simmons to enter into the Non-Solicitation Agreements, which contained unlawful non-solicitation and non-competition provisions. The claimants asserted that they are entitled to compensatory damages in excess of $60 million, the release of $875,000 plus interest held in escrow, exemplary damages, damages for the remaining lease payments, declaratory relief, and attorneys’ fees and costs. On May 1, 2017, the Company filed its response, including a general denial of the allegations and a counterclaim for $2.5 million due to the termination of Messrs. Mayer and Simmons for “Cause” under the Zindagi Acquisition Agreement. The Company also sought its attorneys’ fees and costs. On September 6, 2017, the claimants and the Company agreed to amend certain provisions of the Non-Solicitation Agreements prospectively. However, the Company expressly reserved the right to pursue claims for violation by the claimants of the Non-Solicitation Agreements arising before September 6, 2017. On September 11, 2017, the claimants dismissed their claim for declaratory relief regarding the enforceability of the Non-Solicitation Agreements. On September 26, 2017, the Company amended its response to include new counterclaims for breaches of the contract and fraudulent concealment arising out of allegations that Messrs. Mayer and Simmons improperly handled the Company’s confidential information. The parties completed fact discovery on November 3, 2017, and expert discovery was completed on November 22, 2017. On December 7, 2017, the parties executed a settlement in principle following a mediation. A final settlement agreement was executed on December 22, 2017, whereby the Company agreed to release $1.1 million held in escrow from the acquisition date purchase consideration and an additional cash settlement payment of $11.9 million. The release of the escrow was completed prior to December 31, 2017 and resulted in a decrease in restricted cash and other current liabilities on the Company’s consolidated balance sheet. The cash settlement payment was issued subsequent to December 31, 2017 and accordingly, the Company recorded an $11.9 million obligation within other current liabilities with a corresponding expense within general and administrative expenses in the consolidated statement of operations. The settlement has now been satisfied in full, and all parties’ arbitration claims have subsequently been dismissed. Other The Company is, at various times, also party to various other legal proceedings and claims not previously discussed which arise in the ordinary course of business. In addition, the Company 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, expensive legal fees, costly royalty or licensing agreements, or orders preventing us from offering certain games, features, or services, and may also result in changes in the Company’s business practices, which could result in additional costs or a loss of revenue and could otherwise harm the Company’s business. Although the results of such litigation cannot be predicted with certainty, the Company believes that the amount or range of reasonably possible losses related to such pending or threatened litigation will not have a material adverse effect on its business, operating results, cash flows, or financial condition should such litigation be resolved unfavorably. |
Geographical Information
Geographical Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Geographical Information | 15. Geographical Information The following represents our revenue based on the geographic location of our players (in thousands): Year Ended December 31, 2017 2016 2015 United States $ 567,315 $ 507,473 $ 506,268 All other countries (1) 294,075 233,947 258,449 Total revenue $ 861,390 $ 741,420 $ 764,717 (1) No country, other than the U.S., exceeded 10% of our total revenue for any periods presented. The following represents our property and equipment, net by location (in thousands): Year Ended December 31, 2017 2016 2015 United States $ 263,037 $ 267,324 $ 269,721 All other countries 3,552 2,115 3,500 Total property and equipment, net $ 266,589 $ 269,439 $ 273,221 |
Financial Statement Schedules -
Financial Statement Schedules - Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation And Qualifying Accounts [Abstract] | |
Financial Statement Schedules - Schedule II - Valuation and Qualifying Accounts | 2. Financial Statements Schedule: Schedule II: Valuation and Qualifying Accounts Allowance for Doubtful Accounts and Sales Credits Balance at Beginning of Year Charged to Expenses/ Against Revenue Write-Offs Net of Recoveries Balance at End of Year Year Ended December 31, 2017 $ — $ — $ — $ — Year Ended December 31, 2016 $ — $ — $ — $ — Year Ended December 31, 2015 $ — $ — $ — $ — 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, 2017 | |
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 the Company and its 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 compensation expense and evaluation of recoverability of goodwill, intangible assets, and long-lived assets. Actual results could differ materially from those estimates. Changes in our estimated average life of durable virtual goods during 2017 for various games resulted in an increase in revenue and income from operations of $1.3 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. During 2016, changes in our estimated average life of durable virtual goods resulted in a decrease in revenue and income from operations of $0.1 million. In 2016, we also recognized $4.0 million of revenue and income from operations for games that had been discontinued, as there was no further service obligation after the closure of these games. During 2015, changes in our estimated average life of durable virtual goods resulted in an increase in revenue and income from operations of $1.0 million. In 2015, we also recognized $9.9 million of revenue and income from operations for games that been discontinued. These changes in estimates did not impact our reported earnings per share in 2017 or 2016, but had a $0.01 per share impact on our reported loss per share in 2015. |
Segments | Segments We have one operating and reportable segment, which is at the consolidated company level. The Chief Operating Decision Maker (“CODM”), our Chief Executive Officer, manages our operations on a consolidated basis for purposes of assessing performance and allocating resources. |
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. 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 Apple iTunes accounts, Google Wallet, PayPal and credit cards. When playing our games through the Facebook platform, players can pay for our virtual currency using Facebook local currency payments. Advance payments from customers for virtual goods 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. For revenue earned through mobile platforms, including iOS and Android, we recognize online game revenue based on the gross amount paid by the player because we are the principal in the transaction. Accordingly, we record the related platform and payment processing fees as cost of revenue in the period incurred. Our players utilize Facebook’s local currency-based payments program to purchase virtual currency in our games. For all payment transactions in our games under Facebook’s local currency-based payments model, 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. 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. 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 from sale of the virtual good. 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 the durable virtual good. 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 the virtual goods for that game ratably over the estimated average period that paying players typically play the applicable game. We have had sufficient data to separately account for consumable and durable virtual goods 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 offered and 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 virtual goods for which revenue is recognized over the estimated average playing period, or the estimated average playing period increases on average, the amount of revenue that we recognize in a current or future period may be reduced, perhaps significantly. Conversely, if the estimated average playing period decreases on average, the amount of revenue that we recognize in a current or future period may be accelerated, 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 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 of our virtual goods quarterly. Advertising. We have contractual relationships with agencies, advertising brokers and directly with 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 principal for the advertisement transaction. However, certain advertisement placements that are directly between us and the end advertiser are recognized gross equal to the price paid to the Company by the end advertiser since we are the principal in the direct advertising arrangement. We recognize advertising revenue for engagement advertisements and offers, mobile advertisements, branded virtual goods and sponsorships and other advertisements as advertisements are delivered to customers as long as evidence of the arrangement exists, the price is fixed or determinable, and collectability as reasonably assured. Price is determined to be fixed or determinable when there is a fixed price included a master contract, insertion order, or a third party statement of advertising activity. 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. 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. For these branded virtual goods and sponsorships, we determine the delivery criteria has been met based on delivery reporting received from third parties. 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. Taxes Collected from Customers. We present taxes collected from customers and remitted to governmental authorities on a net basis within our consolidated statement of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, money market funds, corporate debt and U.S. government-issued obligations with maturities of 90 days or less from the date of purchase. |
Short-Term Investments | Short-Term Investments Short-term investments consist of corporate debt securities. The fair value of short-term investments is determined as the exit price in the principal market in which we would transact. Based on our intentions regarding our short-term investments, all short-term investments are classified as available-for-sale and are reported 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. We assess whether an other-than-temporary loss on our investments has occurred due to declines in fair value or other market conditions. 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 with the amount of the write-down recorded as a realized loss within 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 short-term investments have been recorded in any of the periods presented. |
Restricted Cash | Restricted Cash Restricted cash consists of collateral for royalty agreements and funds held in escrow in accordance with the terms of our business acquisition agreements. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the original invoiced amount less an allowance for any potential uncollectible amounts. 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 conditions that may affect our customers’ ability to pay. Bad debts are written off after all collection efforts have ceased. We do not require collateral from our customers. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net are recorded at historical cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the improvements or the lease term. The estimated useful lives of property and equipment are as follows: Property and Equipment Useful Life Computer equipment 3 years Software 2 to 3 years Building and building improvements 7 to 39 years Furniture and fixtures 2 years Leasehold improvements Shorter of useful life (generally up to 7 years) or remaining 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 (if applicable), to the tangible assets, liabilities and identifiable intangible assets acquired based on their estimated fair values at the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Determining the fair value of such items requires judgment, including estimating future cash flows or the cost to recreate an acquired asset. If actual results are lower than initial estimates, we could be required to record impairment charges in the future. Acquired intangible assets with definite lives are amortized over their estimated useful lives generally on a straight-line basis, unless evidence indicates a more appropriate method. Intangible assets with indefinite lives are not amortized but rather tested for impairment annually, or more frequently if circumstances indicate an impairment may exist. Acquisition-related expenses are expensed as incurred. During the one-year period beginning with the acquisition date, we may record certain purchase accounting adjustments related to the fair value of assets acquired and liabilities assumed against goodwill. After the final determination of the fair value of assets acquired or liabilities assumed, any subsequent adjustments are recorded to our consolidated statements of operations. The fair value of contingent consideration liabilities assumed from an acquisition are remeasured each reporting period and the changes in the fair value is recorded within operating expenses in our consolidated statement of operations each reporting period. |
Software Development Costs | Software Development Costs We review internal use software development costs associated with new games or updates to existing games on a quarterly basis to determine if the costs qualify for capitalization. Our studio teams follow an agile development process, whereas the preliminary project stage remains ongoing until just prior to worldwide launch, at which time final feature selection occurs. As such, the development costs are expensed as incurred to research and development in our consolidated statement of operations. We did not capitalize any software development costs in 2017, 2016 or 2015 |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Goodwill and indefinite-lived intangible assets 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 by comparing the fair value of our single reporting unit to its carrying value. If the carrying value of the reporting unit exceeds its fair value, then we record the amount by which the carrying value exceeds its fair value, if any, as impairment to goodwill. For our annual goodwill impairment analysis performed in the fourth quarter of 2017, our estimates of fair value were based on the market approach, which estimated the fair value of our reporting unit based on the Company’s market capitalization at the annual testing date. The result of the quantitative evaluation indicated that the estimated fair value of the reporting unit exceeded its carrying value. Accordingly, we concluded goodwill was not impaired. At least annually, we test recoverability of indefinite-lived intangible assets using a qualitative approach that considers whether it is more likely than not that the fair value of the intangible asset exceeds its carrying value. If qualitative factors indicate that it is more likely than not that the indefinite-lived intangible asset is impaired, a quantitative analysis is performed and the amount of any impairment loss recorded, if any, is measured as the difference between the carrying value and the fair value of the impaired intangible asset. We concluded that indefinite-lived intangible assets were not impaired as of December 31, 2017. |
Intangible Assets | Intangible Assets Intangible assets generally consist of definite-lived intangibles assets acquired from a prior business combination and are carried at historical cost less accumulated amortization. Amortization is generally recorded on a straight-lined basis, unless another method is deemed more appropriate, over the estimated useful lives of the assets, generally 12 to 84 months. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, including other intangible assets not considered 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 an 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. In the third quarter of 2016, we recorded an $18.2 million and $2.5 million impairment charge associated with developed technology previously acquired from Rising Tide and Zindagi, respectively. There were no impairment charges recorded during 2017 or 2015. |
Licenses and Royalties | Licenses and Royalties We obtain licenses from third parties for use of their brands, properties and other licensed content in our games (e.g., Hit It Rich! Slots against future royalty obligations that would otherwise become payable. Each quarter, we evaluate the recoverability of our prepaid royalties as well as any contractual commitments |
Stock-Based Compensation Expense | Stock-Based Compensation Expense We recognize stock-based compensation expense for ZSUs based on grant date fair value on a straight-line basis over the requisite service period for the entire award. For certain performance based ZSUs, we recognize the stock-based compensation expense based upon the grant date fair value on an accelerated attribution basis over the requisite service period of the 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 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 rate in effect at the time of grant with maturities equal to the stock option award’s expected life. During the fourth quarter of 2015, we changed the basis of estimating our expected volatility from using peer group data to using our own historical calculated rate. If any of the assumptions used in the Black-Scholes model changes significantly, stock-based compensation expense for future awards may differ materially compared to awards previously granted previously. We record stock-based compensation expense for stock options on a straight-line basis over the vesting term. Stock-based compensation expense is recorded net of forfeitures as they are occur. |
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 at the end of the reporting period; the effect of future changes in tax laws or rates are not anticipated (refer to the header “Tax Cuts and Jobs Act” earlier in MD&A for further discussion on the impact to the enacted tax laws in 2017). 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 tax. In January 2018, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) SAB 118 ASC 740 Income Taxes SAB 118 In accordance with SAB 118 We have determined that we cannot make a reasonable estimate of the income tax effect with respect to global intangible low-taxed income (GILTI) provisions of the 2017 Tax Act. The GILTI provisions allow companies to make an accounting policy election to either (i) account for GILTI as a component of tax expense in the period in which the entity is subject to the rules or (ii) account for GILTI in the entity’s measurement of deferred taxes. Our ultimate accounting policy election will depend on our estimates of future taxable income related to GILTI. Refer to the Note 7 – “Income Taxes” for further discussion on the impact of tax laws enacted during 2017. |
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 re-measured into U.S. dollars at reporting period-end exchange rates and foreign currency denominated nonmonetary assets and liabilities are re-measured into U.S. dollars at historical exchange rates. Gains or losses from foreign currency re-measurement of monetary assets and liabilities and transaction 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 exchange rates at the prevailing balance sheet date to translate assets and liabilities, and the average exchange rates during the period 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 investments, accounts receivable and lease receivables. Substantially all of our cash and cash equivalents are maintained with three financial institutions with high credit standings. We perform periodic evaluations of the relative credit standing of these institutions. Accounts receivable and lease receivables 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 or tenant’s ability to meet its financial obligations, we record a specific allowance as a reduction to the accounts or lease receivable balance to reduce the receivable to its net realizable value. Apple, Google and Facebook are significant distribution, marketing, promotion and payment platforms for our social games. MoPub is a significant advertising partner that serves advertisements in our games. A significant portion of our 2017, 2016 and 2015 revenue was generated from players who accessed our games through these platforms or were served advertisements in our games on behalf of advertisers. As of December 31, 2017 and December 31, 2016, 34% and 27% of our accounts receivable, respectively, were amounts owed to us by Apple, 19% and 23% of our accounts receivable, respectively, were amounts owed to us by Google, 10% and 12% of our accounts receivable, respectively, were amounts owed to us by Facebook, and 15% and 10% of our accounts receivable, respectively, were amounts owed to us by MoPub. |
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 $147.2 million, $132.5 million and $128.9 million for 2017, 2016 and 2015 respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers (Topic 606), Based on our assessment of the standard, a key change in the standard that impacts our revenue recognition relates to the explicit collectability threshold a contract must meet before revenue can be recognized. For certain advertising arrangements where we have assessed that collectability is not reasonably assured due to unfavorable payment terms or a history of slow collections, the current practice is to defer revenue recognition until payment is received. However, under the new standard, we will be required to make an assessment of collectability at the inception of the contract and if deemed probable for collection, recognize revenue at the amount we expect to be entitled to as advertisements are delivered, which will result in an acceleration in revenue recognition compared to the current method. Another change in the standard that impacts our revenue recognition relates to the distinction between functional intellectual property and symbolic intellectual property for licensing arrangements. The current practice is to recognize revenue when a license is delivered (i.e. at a point in time). However, under the new standard, we will be required to make a distinction based on the nature of the license and recognize revenue at a point in time for functional intellectual property and over time for symbolic intellectual property. For our licensing arrangements of symbolic intellectual property (such as trademarks, brands and character images), this will result in a deceleration of revenue recognition when compared to the current method. We previously disclosed the standard would also have an impact on our software licensing related to NaturalMotion technology, which is currently recognized as revenue over time, rather than a point in time. However, as a result of a restructuring plan we implemented in the second quarter of 2017, we will no longer provide maintenance services for any new software licenses sold after June 30, 2017. Therefore, the requirement to estimate the standalone selling price of software licenses separate from any associated maintenance services and recognize revenue for the license when control is transferred will only apply to a small subset of our existing licensing contracts. While this change will result in an acceleration in revenue recognition compared to the current method, the impact will not be material. As a result of adoption, we expect to record a transition adjustment in the range of $3.0 to $5.0 million. We do not, however, anticipate significant changes to our current business processes and systems to support the adoption of the standard in the first quarter of 2018. Additionally, we are finalizing the required disclosures, including the disaggregation of revenue, reconciliation of contract balances and significant judgments used to allow users of our financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with our customers. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on specific topics related to how certain cash receipts and cash payments are classified in the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash, ” which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Both standards are effective for interim and annual reporting periods beginning after December 15, 2017 with early adoption permitted. We will adopt the standards in the first quarter of 2018. While we continue to assess the potential impact of the new standards, we expect the adoption of these standards will have a material impact on our consolidated financial statements due to the balance of our restricted cash. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 805) Clarifying the Definition of a Business In March 2016, the FASB issued ASU 2016-09, “Stock Compensation (Topic 718): Improvements to Employee Shared-Based Payment Accounting” In January 2017, the FASB issued ASU 2017-04, “ Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, |
Overview and Summary of Signi25
Overview and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and Equipment | The estimated useful lives of property and equipment are as follows: Property and Equipment Useful Life Computer equipment 3 years Software 2 to 3 years Building and building improvements 7 to 39 years Furniture and fixtures 2 years Leasehold improvements Shorter of useful life (generally up to 7 years) or remaining lease term |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash And Cash Equivalents [Abstract] | |
Summary of Available-for-Sale Short-Term Investments Securities | The following tables summarize our amortized cost, gross unrealized gains and losses and fair value of our short-term investments as of December 31, 2017 (in thousands): December 31, 2017 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Corporate debt securities $ 308,684 $ — $ (178 ) $ 308,506 Total available-for-sale short-term investments $ 308,684 $ — $ (178 ) $ 308,506 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets and Liabilities 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, 2017 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 177,577 $ — $ — $ 177,577 Corporate debt securities — 44,923 — 44,923 Short-term investments: Corporate debt securities — 308,506 — 308,506 Total financial assets $ 177,577 $ 353,430 $ — $ 531,006 Liabilities: Contingent consideration $ — $ — $ — $ — December 31, 2016 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 439,330 $ — $ — $ 439,330 U.S. government and government agency debt securities — 19,987 — 19,987 Corporate debt securities — 269,768 — 269,768 Total financial assets $ 439,330 $ 289,755 $ — $ 729,085 Liabilities: Contingent consideration $ — $ — $ 901 $ 901 |
Fair Value Liabilities Measured on Recurring Basis | The following table presents the activity for the year ended December 31, 2017 related to our Level 3 liabilities (in thousands): Level 3 Liabilities: Zindagi PuzzleSocial Total Contingent consideration liability – December 31, 2016 $ 180 $ 721 $ 901 Fair value adjustments (180 ) (721 ) (901 ) Contingent consideration liability – December 31, 2017 $ — $ — $ — |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment, Net | Property and equipment, net consist of the following (in thousands): December 31, December 31, 2017 2016 Computer equipment $ 21,583 $ 27,046 Software 32,509 31,102 Land 89,130 89,130 Building and building improvements 199,070 197,689 Furniture and fixtures 10,376 10,494 Leasehold improvements 7,965 8,071 Total property and equipment, gross $ 360,633 $ 363,532 Less accumulated depreciation (94,044 ) (94,093 ) Total property and equipment, net $ 266,589 $ 269,439 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Solitaire Mobile Gaming Applications [Member] | |
Schedule of Purchase Price Allocation | The following table summarizes the purchase date fair value of acquired net intangible assets (excluding the noncompetition agreement) from Harpan (in thousands): Total Developed technology, useful life of 5 years $ 20,471 Goodwill 14,610 Total $ 35,081 |
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | |
Schedule of Purchase Price Allocation | The following table summarizes the purchase date fair value of the net tangible assets, intangible assets (excluding the noncompetition agreement) and the related goodwill acquired from Peak Games (in thousands): Total Developed technology, useful life of 5 years $ 24,000 Trade names, useful life of 7 years 2,000 Goodwill 72,120 Net tangible assets acquired 500 Total assets acquired $ 98,620 |
Zindagi [Member] | |
Schedule of Purchase Price Allocation | The following table summarizes the purchase date fair value of intangible assets acquired from Zindagi (in thousands, unaudited): Total Developed technology, useful life of 3 years $ 3,257 Goodwill 10,503 Total $ 13,760 |
PuzzleSocial [Member] | |
Schedule of Purchase Price Allocation | The following table summarizes the purchase date fair value of net tangible and intangible assets acquired from PuzzleSocial (in thousands, unaudited): Total Developed technology, useful life of 4.5 years $ 6,923 Customer base, useful life of 1 year 3,499 Net tangible assets acquired 2,144 Goodwill 11,811 Deferred tax liabilities (3,948 ) Total $ 20,429 |
Goodwill and Intangible Asset30
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes to Goodwill | The following table presents the changes to goodwill from December 31, 2015 to December 31, 2017 (in thousands): Goodwill – December 31, 2015 (1) $ 657,671 Additions 23,191 Foreign currency translation and other adjustments ( 2 ) (67,527 ) Goodwill – December 31, 2016 (1) $ 613,335 Additions 86,730 Foreign currency translation adjustments 30,399 Goodwill – December 31, 2017 ( 1 ) $ 730,464 (1) There are no accumulated impairment losses at the beginning or end of any period presented. ( 2 ) The foreign currency translation adjustments are primarily related to translation gains (losses) on goodwill associated with the acquisition of NaturalMotion denominated in British pounds. The other adjustments include the impact of adjustments to goodwill resulting from changes in net assets (liabilities) acquired and other adjustments, pursuant to our business combinations policy. |
Intangible Assets | The details of our intangible assets as of December 31, 2017 are as follows (in thousands): December 31, 2017 Gross Carrying Accumulated Net Book Value Amortization Value Developed technology $ 197,908 $ (147,427 ) $ 50,481 Trademarks, branding and domain names 18,272 (10,152 ) 8,120 Noncompetition agreements 8,390 (3,079 ) 5,311 Acquired lease intangibles 5,708 (5,362 ) 346 Total $ 230,278 $ (166,020 ) $ 64,258 December 31, 2016 Gross Carrying Accumulated Net Book Value Amortization Value Developed technology $ 150,826 $ (132,123 ) $ 18,703 Trademarks, branding and domain names 16,290 (10,063 ) 6,227 Acquired lease intangibles 5,708 (5,208 ) 500 Total $ 172,824 $ (147,394 ) $ 25,430 |
Schedule of Finite Lived Intangible Assets Future Amortization Expense | As of December 31, 2017, future amortization expense related to the intangible assets that is expected to be recognized as shown below (in thousands): Year ending December 31: 2018 $ 17,807 2019 12,965 2020 11,712 2021 9,315 2022 5,768 Thereafter 571 Total $ 58,138 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) Before Income Taxes | Income (loss) before income taxes consists of the following for the periods shown below (in thousands): Year Ended December 31, 2017 2016 2015 United States $ (6,081 ) $ (62,037 ) $ (83,432 ) International 43,664 (42,694 ) (46,750 ) Total $ 37,583 $ (104,731 ) $ (130,182 ) |
Components of Provision for (Benefit from) Income Taxes | The provision for (benefit from) income taxes consists of the following for the periods shown below (in thousands): Year Ended December 31, 2017 2016 2015 Current: Federal $ (2,132 ) $ (30 ) $ (30 ) State 142 2 (2,863 ) Foreign 13,562 7,178 3,817 Total current tax expense $ 11,572 $ 7,150 $ 924 Deferred: Federal $ (1,231 ) $ (2,809 ) $ (8,818 ) State 300 (20 ) (504 ) Foreign 303 (879 ) (274 ) Total deferred tax expense (benefit) $ (628 ) $ (3,708 ) $ (9,596 ) Provision for (benefit from) income taxes $ 10,944 $ 3,442 $ (8,672 ) |
Reconciliation of Federal Statutory Income Tax Provision (Benefit) to Effective Income Tax Provision | The reconciliation of federal statutory income tax provision (benefit) to our effective income tax provision is as follows (in thousands): Year Ended December 31, 2017 2016 2015 Expected provision (benefit) at U.S. federal statutory rate of 35% $ 13,154 $ (36,656 ) $ (45,564 ) State income taxes - net of federal benefit 142 2 (2,863 ) Income taxed at foreign rates (3,643 ) 20,112 18,406 Equity-based compensation (2,898 ) 4,295 1,125 Tax reserve for uncertain tax positions 3,101 2,382 1,827 Change in valuation allowance (51,976 ) 14,786 17,526 Impact of change in enacted tax rates 48,296 69 (18 ) Acquisition costs — 110 650 Contingent consideration (252 ) (2,781 ) — Officer's compensation limitation 2,582 — — Investment in subsidiaries 1,676 — — Other 762 1,123 239 $ 10,944 $ 3,442 $ (8,672 ) |
Schedule of Deferred Tax Assets and Liabilities | Our deferred tax assets and liabilities are as follows (in thousands): Year Ended December 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 66,680 $ 53,474 Tax credit carryforwards 98,718 52,564 Acquired intangible assets 25,692 26,110 Stock-based compensation 7,467 16,087 Accrued expenses 5,505 8,605 Other accrued compensation 4,747 5,059 Charitable contributions 2,886 4,495 State taxes 248 3,168 Deferred revenue 312 481 Other 423 — Total deferred tax assets $ 212,678 $ 170,043 Less: Valuation allowance (209,652 ) (164,907 ) Deferred tax assets, net of valuation allowance $ 3,026 $ 5,136 Deferred tax liabilities: Goodwill $ (3,210 ) $ (3,396 ) Deferred rent (1,073 ) (69 ) Depreciation (3,839 ) (7,215 ) Other — (247 ) Total deferred tax liabilities $ (8,122 ) $ (10,927 ) Net deferred taxes $ (5,096 ) $ (5,791 ) |
Summary of Net Operating Loss and Tax Credit Carryforwards | Net operating loss and tax credit carryforwards as of December 31, 2017 are as follows (in thousands): Amount Expiration years Net operating losses, federal $ 409,273 2029 – 2036 Net operating losses, state 299,631 2021 – 2036 Tax credits, federal 89,218 2030 – 2037 Tax credits, state 82,617 2019 – indefinite |
Schedule of Changes in Gross Unrecognized Tax Benefits | The following table reflects changes in the gross unrecognized tax benefits (in thousands): 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 Additions based on tax positions related to 2016 9,043 Additions for tax positions of prior years 68 Reductions for tax positions of prior years (856 ) December 31, 2016 $ 151,100 Additions based on tax positions related to 2017 8,598 Additions for tax positions of prior years 427 Decreases related to expiration of prior year tax positions (31 ) Decreases related to settlements of prior year tax positions (54 ) December 31, 2017 $ 160,040 |
Other Current and Non-Current32
Other Current and Non-Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): December 31, December 31, 2017 2016 Accrued accounts payable $ 38,046 $ 24,119 Accrued compensation liability 33,815 22,554 Accrued restructuring liability 3,674 4,987 Accrued payable from acquisitions 12,800 5,990 Accrued lease incentive obligation 20,059 — Other current liabilities 14,695 18,104 Total other current liabilities $ 123,089 $ 75,754 |
Schedule of Other Non-Current Liabilities | Other non-current liabilities consist of the following (in thousands): December 31, December 31, 2017 2016 Accrued payable from acquisitions $ 20,000 $ 3,951 Accrued restructuring liability 10,856 14,485 Unrecognized tax liability 8,975 52,779 Other non-current liabilities 9,081 4,381 Total other non-current liabilities $ 48,912 $ 75,596 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Summary of Net Restructuring Charges Within Consolidated Statement of Operation | We recorded the following net restructuring charges within our consolidated statements of operations for the years presented (in thousands): Year Ended December 31, 2017 2016 2015 Cost of revenue $ — $ — $ 1,066 Research and development 2,347 124 14,081 Sales and marketing 149 — 787 General and administrative 688 1,814 20,547 Total restructuring charges $ 3,184 $ 1,938 $ 36,481 |
Summary of Significant Restructuring Plan Activity Related To Employees And Other Charges | Significant restructuring activities related to the Company’s employees and other charges, summarized by plan, are presented in the table below (in thousands): Q4 2017 Q3 2017 Q2 2017 Q2 2015 Restructuring Plan Restructuring Plan Restructuring Plan Restructuring Plan Total Restructuring liability – December 31, 2015 $ — $ — $ — $ 26,406 $ 26,406 Restructuring expense and adjustments — — — 926 926 Cash payments — — — (7,944 ) (7,944 ) Restructuring liability – December 31, 2016 — — — 19,388 19,388 Restructuring expense and adjustments 1,466 918 1,242 (451 ) 3,175 Cash payments (1,095 ) (911 ) (1,242 ) (4,785 ) (8,033 ) Restructuring liability – December 31, 2017 $ 371 $ 7 $ — $ 14,152 $ 14,530 Cumulative costs to date, as of December 31, 2017 $ 1,466 $ 918 $ 1,242 $ 34,324 $ 37,950 Total costs expected to be incurred, as of December 31, 2017 $ 2,610 $ 920 $ 1,252 $ 34,324 $ 39,106 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stock-Based Compensation Expense Related to Grants of Employee Stock Options, Restricted Stock Units (ZSUs) and Performance-Based Awards | We recorded stock-based compensation expense related to grants of employee stock options, ZSUs and performance-based awards in our consolidated statements of operations as follows (in thousands): Year Ended December 31, 2017 2016 2015 Cost of revenue $ 1,838 $ 3,720 $ 4,547 Research and development 42,176 84,236 94,548 Sales and marketing 7,281 7,254 7,501 General and administrative 13,220 12,251 24,979 Total stock-based compensation expense $ 64,515 $ 107,461 $ 131,575 |
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 related assumptions used to estimate the fair value in our consolidated financial statements: Year Ended December 31, 2017 2016 2015 Expected term, in years 6 6 6 Risk-free interest rates 2.12 % 1.53 % 1.65 % Expected volatility 46 % 50 % 53 % Dividend yield — — — Weighted-average estimated fair value of stock options granted during the year $ 1.75 $ 1.30 $ 1.51 |
Schedule of Share Based Compensation Stock Option Activity | The following table shows stock option activity for 2017 (in thousands, except weighted-average exercise price and remaining contractual term): Outstanding Options Stock Options Weighted- Average Exercise Price Aggregate Intrinsic Value of Stock Options Outstanding Weighted- Average Contractual Term (in years) Balance as of December 31, 2016 36,858 $ 2.08 $ 26,411 6.81 Granted 1,681 3.76 Forfeited, expired and cancelled (3,084 ) 3.63 Exercised (2,491 ) 1.33 Balance as of December 31, 2017 32,964 $ 2.07 $ 64,114 6.32 As of December 31, 2017 Exercisable options 16,880 $ 1.43 $ 43,878 4.11 Vested and expected to vest 32,964 $ 2.07 $ 64,114 6.32 |
Schedule of Share Based Compensation Restricted Stock Units Award Activity | The following table shows a summary of ZSU activity for 2017 (in thousands, except weighted-average fair value): Outstanding ZSUs Weighted- Average Grant Date Aggregate Fair Value Intrinsic Value of Shares (per share) Unvested ZSUs Unvested as of December 31, 2016 59,452 $ 2.66 $ 152,792 Granted 22,210 3.52 Vested (20,774 ) 2.83 Forfeited (15,410 ) 2.67 Unvested as of December 31, 2017 45,478 $ 3.00 $ 181,912 |
Common Stock Reserved For Future Issuance | As of December 31, 2017, we had reserved shares of common stock for future issuance as follows (in thousands): December 31, 2017 Stock options outstanding 32,964 ZSUs outstanding 45,478 2011 Equity Incentive Plan 126,918 2011 Employee Stock Purchase Plan 92,875 Total 298,235 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income Loss | The following table shows a summary of changes in accumulated other comprehensive income (loss) by component from December 31, 2015 to December 31, 2017 (in thousands): Foreign Currency Translation Unrealized Gains on Available- for-Sale Marketable Securities Total Balance as of December 31, 2015 $ (52,261 ) $ (127 ) $ (52,388 ) Other comprehensive income (loss) before reclassifications (76,410 ) 104 (76,306 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss) (76,410 ) 104 (76,306 ) Balance as of December 31, 2016 $ (128,671 ) $ (23 ) $ (128,694 ) Other comprehensive income (loss) before reclassifications 35,352 (155 ) 35,197 Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss) 35,352 (155 ) 35,197 Balance as of December 31, 2017 $ (93,319 ) $ (178 ) $ (93,497 ) |
Net Income (Loss) Per Share o36
Net Income (Loss) Per Share of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 Class Class Class Class Class Class Class Class Class A B C A B C A B C BASIC: Net income (loss) attributable to common stockholders – basic $ 23,795 $ 2,204 $ 629 $ (92,988 ) $ (12,660 ) $ (2,525 ) $ (103,628 ) $ (15,153 ) $ (2,729 ) Weighted-average common shares outstanding – basic 776,625 71,925 20,517 755,460 102,850 20,517 779,071 113,923 20,517 Net income (loss) per share attributable to common stockholders – basic $ 0.03 $ 0.03 $ 0.03 $ (0.12 ) $ (0.12 ) $ (0.12 ) $ (0.13 ) $ (0.13 ) $ (0.13 ) DILUTED: Net income (loss) attributable to common stockholders – basic $ 23,795 $ 2,204 $ 629 $ (92,988 ) $ (12,660 ) $ (2,525 ) $ (103,628 ) $ (15,153 ) $ (2,729 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares 629 — — (2,525 ) — — (2,729 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares 2,204 — — (12,660 ) — — (15,153 ) — — Reallocation of net income (loss) to Class B and Class C shares — 180 (20 ) — — — — — — Net income (loss) attributable to common stockholders – diluted $ 26,628 $ 2,384 $ 609 $ (108,173 ) $ (12,660 ) $ (2,525 ) $ (121,510 ) $ (15,153 ) $ (2,729 ) Weighted-average common shares outstanding – basic 776,625 71,925 20,517 755,460 102,850 20,517 779,071 113,923 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 71,925 — — 102,850 — — 113,923 — — Weighted-average effect of dilutive securities: Stock options and employee stock purchase plan 9,879 8,390 — — — — — — — ZSUs 16,935 — — — — — — — — Performance-based ZSUs 1,284 — — — — — — — — Weighted-average common shares outstanding – diluted 897,165 80,315 20,517 878,827 102,850 20,517 913,511 113,923 20,517 Net income (loss) per share attributable to common stockholders – diluted $ 0.03 $ 0.03 $ 0.03 $ (0.12 ) $ (0.12 ) $ (0.12 ) $ (0.13 ) $ (0.13 ) $ (0.13 ) |
Shares excluded from Calculation of Diluted Net Income (Loss) per Share | 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, 2017 2016 2015 Stock options and employee stock purchase plan 17,331 28,380 29,412 Restricted shares 349 3,899 8,716 ZSUs 5,087 61,183 63,764 Total 22,767 93,462 101,892 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of Cash to be Received Future Minimum Rentals for Noncancelable Lease Term | As of December 31, 2017, cash to be received from future minimum rentals for the noncancelable lease term are as follows (in thousands): Year ending December 31: 2018 $ 5,534 2019 11,345 2020 14,369 2021 20,287 2022 20,896 Thereafter 93,982 Total $ 166,413 |
Schedule of Future Minimum Lease Payments for Operating Leases | We have entered into operating leases for primarily office facilities. As of December 31, 2017, future minimum lease payments related to the Company’s leases are as follows (in thousands): Year ending December 31: 2018 $ 8,301 2019 7,891 2020 5,777 2021 4,988 2022 1,574 Thereafter — Total $ 28,531 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Contractual Royalty Payments to Licensors and Marketing Commitments | We have entered into several contracts with licensors that contain minimum contractual and marketing commitments that may not be dependent on any deliverables. As of December 31, 2017, future minimum contractual royalty payments due to licensors and marketing commitments for the licensed products are as follows (in thousands): Year ending December 31: 2018 $ 8,875 2019 8,750 2020 2,250 Thereafter — Total $ 19,875 |
Schedule of Future Minimum Purchase Commitments | We have entered into several contracts primarily for hosting of data systems and other services. As of December 31, 2017, future minimum purchase commitments that have initial or remaining non-cancelable terms are as follows (in thousands): Year ending December 31: 2018 $ 8,048 2019 2,246 2020 383 Thereafter — Total $ 10,677 |
Geographical Information (Table
Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Revenue by Geographical Area | The following represents our revenue based on the geographic location of our players (in thousands): Year Ended December 31, 2017 2016 2015 United States $ 567,315 $ 507,473 $ 506,268 All other countries (1) 294,075 233,947 258,449 Total revenue $ 861,390 $ 741,420 $ 764,717 (1) No country, other than the U.S., exceeded 10% of our total revenue for any periods presented. |
Property and Equipment, Net | The following represents our property and equipment, net by location (in thousands): Year Ended December 31, 2017 2016 2015 United States $ 263,037 $ 267,324 $ 269,721 All other countries 3,552 2,115 3,500 Total property and equipment, net $ 266,589 $ 269,439 $ 273,221 |
Overview and Summary of Signi40
Overview and Summary of Significant Accounting Policies - Additional Information (Detail) | Jan. 02, 2016 | Sep. 30, 2016USD ($) | Dec. 31, 2017USD ($)SegmentFinancial_Institution | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)$ / shares |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Initial offering period | December 2,011 | ||||
Changes in revenue from adjustments of prior period deferred revenue | $ 1,300,000 | $ 100,000 | $ 1,000,000 | ||
Revenue and income from operations | 4,000,000 | $ 9,900,000 | |||
Impact on reported earnings per share | $ / shares | $ 0.01 | ||||
Operating segment | Segment | 1 | ||||
Reportable segment | Segment | 1 | ||||
Impairments of short-term investments | $ 0 | ||||
Impairment of intangible assets | $ 20,677,000 | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | ||
Income tax benefit in connection with re-measurement of deferred tax assets and liabilities | $ 2,400,000 | ||||
Income tax benefit in connection with refundable AMT credit | $ 2,600,000 | ||||
Number of financial institutions in which cash, cash equivalents and securities held | Financial_Institution | 3 | ||||
Advertising expense | $ 147,200,000 | $ 132,500,000 | $ 128,900,000 | ||
FASB issued ASU 2016-09 | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Cumulative effect adjustment to retained earnings (a reduction in the accumulated deficit) | 48,200,000 | ||||
Valuation allowance, deferred tax asset, increase (decrease), amount | 97,300,000 | ||||
Cumulative effect adjustment to retained earnings (an increase in the accumulated deficit) | $ 3,900,000 | ||||
Facebook [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Entity wide accounts receivables major customer percentage | 10.00% | 12.00% | |||
Apple [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Entity wide accounts receivables major customer percentage | 34.00% | 27.00% | |||
Google [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Entity wide accounts receivables major customer percentage | 19.00% | 23.00% | |||
MoPub [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Entity wide accounts receivables major customer percentage | 15.00% | 10.00% | |||
Acquired Intangible Assets [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Impairment of intangible assets | $ 0 | $ 0 | |||
Rising Tide [Member] | Developed Technology [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Impairment of intangible assets | $ 18,200,000 | ||||
Zindagi [Member] | Developed Technology [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Estimated useful lives of intangible assets | 3 years | ||||
Impairment of intangible assets | $ 2,500,000 | ||||
Minimum [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Estimated useful lives of intangible assets | 12 months | ||||
Minimum [Member] | FASB issued ASU 2014-09 [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Transition adjustment | $ 3,000,000 | ||||
Maximum [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Estimated useful lives of intangible assets | 84 months | ||||
Maximum [Member] | FASB issued ASU 2014-09 [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Transition adjustment | $ 5,000,000 | ||||
Consumable Virtual Goods [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Revenue recognition period | 1 month | ||||
Facebook Credits [Member] | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Percentage of revenue recognized price | 70.00% |
Overview and Summary of Signi41
Overview and Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Computer Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 years |
Software [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 2 years |
Software [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 years |
Building and Building Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 7 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 39 years |
Furniture and Fixtures [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 2 years |
Leasehold Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | Shorter of useful life (generally up to 7 years) or remaining lease term |
Short-Term Investments - Summar
Short-Term Investments - Summary of Available-for-Sale Short-Term Investments Securities (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 308,684,000 | |
Gross Unrealized Losses | (178,000) | |
Aggregate Fair Value | 308,506,000 | $ 0 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 308,684,000 | |
Gross Unrealized Losses | (178,000) | |
Aggregate Fair Value | $ 308,506,000 |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash And Cash Equivalents [Line Items] | ||
Short-term investments | $ 308,506,000 | $ 0 |
Unrealized losses related to short-term investments | (200,000) | |
Fair value | 143,000,000 | |
Available-for-sale securities, continuous unrealized loss position, more than twelve months, fair value | $ 0 | |
Maximum [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Available-for-sale short-term investments period of contractual maturities | 1 year |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets liabilities transfers between valuation levels | $ 0 | $ 0 |
Zindagi and PuzzleSocial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | 0 | |
Zindagi and PuzzleSocial [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 | $ 900,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | $ 531,006 | $ 729,085 |
Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 901 | |
Short-term Investments [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 308,506 | |
Cash Equivalents [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 177,577 | 439,330 |
Cash Equivalents [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 | 19,987 | |
Cash Equivalents [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 44,923 | 269,768 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 177,577 | 439,330 |
Fair Value, Inputs, Level 1 [Member] | Cash Equivalents [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 177,577 | 439,330 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 353,430 | 289,755 |
Fair Value, Inputs, Level 2 | Short-term Investments [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 308,506 | |
Fair Value, Inputs, Level 2 | Cash Equivalents [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 | 19,987 | |
Fair Value, Inputs, Level 2 | Cash Equivalents [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | $ 44,923 | 269,768 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 901 | |
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 | $ 901 |
Fair Value Measurements - Fai46
Fair Value Measurements - Fair Value Liabilities Measured on Recurring Basis (Detail) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration liability, Beginning Balance | $ 901 |
Fair value adjustments | (901) |
Zindagi [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration liability, Beginning Balance | 180 |
Fair value adjustments | (180) |
PuzzleSocial [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration liability, Beginning Balance | 721 |
Fair value adjustments | $ (721) |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Property Plant And Equipment [Line Items] | |||
Total property and equipment, gross | $ 360,633 | $ 363,532 | |
Less accumulated depreciation | (94,044) | (94,093) | |
Total property and equipment, net | 266,589 | 269,439 | $ 273,221 |
Computer Equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment, gross | 21,583 | 27,046 | |
Software [Member] | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment, gross | 32,509 | 31,102 | |
Land [Member] | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment, gross | 89,130 | 89,130 | |
Building and Building Improvements [Member] | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment, gross | 199,070 | 197,689 | |
Furniture and Fixtures [Member] | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment, gross | 10,376 | 10,494 | |
Leasehold Improvements [Member] | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment, gross | $ 7,965 | $ 8,071 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Line Items] | ||||||
Accumulated depreciation | $ 94,044 | $ 94,093 | ||||
Proceeds from sale of property and equipment | $ 273 | $ 3,209 | $ 814 | |||
Asset Held for Sale [Member] | Computer Equipment [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Proceeds from sale of property and equipment | $ 1,300 | $ 1,200 | $ 400 | |||
Asset Held for Sale [Member] | Computer Equipment [Member] | Other Income (Expense), Net [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Gain (Loss) on fair value of assets less costs to sell | (300) | |||||
Other Current Assets [Member] | Asset Held for Sale [Member] | Computer Equipment [Member] | ||||||
Property Plant And Equipment [Line Items] | ||||||
Property and equipment, gross | 83,900 | |||||
Accumulated depreciation | 80,700 | |||||
Fair value of assets less costs to sell | $ 2,900 | $ 3,200 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Dec. 12, 2017 | Feb. 14, 2017 | Jul. 02, 2016 | Jan. 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 64,258,000 | $ 25,430,000 | |||||||
Professional fees and transaction taxes | $ 300,000 | ||||||||
Noncompetition Agreements [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 5,311,000 | ||||||||
Harpan LLC [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition effective date of acquisition | Feb. 14, 2017 | ||||||||
Business acquisition, cost of acquired entity, cash paid | $ 42,500,000 | ||||||||
Estimated amount allocated to business combination | 35,081,000 | ||||||||
Harpan LLC [Member] | Noncompetition Agreements [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 7,400,000 | ||||||||
Intangible assets, useful life | 2 years | ||||||||
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition effective date of acquisition | Dec. 12, 2017 | ||||||||
Business acquisition, cost of acquired entity, cash paid | $ 99,700,000 | ||||||||
Estimated amount allocated to business combination | 98,620,000 | ||||||||
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | Noncompetition Agreements [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | 1,000,000 | ||||||||
Intangible assets, useful life | 3 years | ||||||||
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | Transition Service Agreement [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 100,000 | ||||||||
Term of agreement | 12 months | ||||||||
Peak and Solitaire Games [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Professional fees and transaction taxes | $ 3,000,000 | ||||||||
Zindagi [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition effective date of acquisition | Jan. 1, 2016 | ||||||||
Business acquisition, cost of acquired entity, cash paid | $ 12,500,000 | ||||||||
Estimated amount allocated to business combination | $ 13,760,000 | ||||||||
Professional fees and transaction taxes | $ 200,000 | ||||||||
Potential future payments maximum period | 3 years | ||||||||
Fair value of contingent consideration liability | $ 1,300,000 | ||||||||
Business acquisition, cost of acquired entity | $ 13,800,000 | ||||||||
Business acquisition, prepaid compensation expense | $ 2,500,000 | ||||||||
Potential future payments | $ 60,000,000 | ||||||||
PuzzleSocial [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition effective date of acquisition | Jul. 1, 2016 | ||||||||
Business acquisition, cost of acquired entity, cash paid | $ 20,000,000 | ||||||||
Estimated amount allocated to business combination | 20,429,000 | ||||||||
Potential future payments maximum period | 2 years 6 months | ||||||||
Fair value of contingent consideration liability | 400,000 | ||||||||
Business acquisition, cost of acquired entity | $ 20,400,000 | ||||||||
Potential future payments | $ 42,000,000 | ||||||||
Percentage of acquired equity interest | 100.00% | ||||||||
Zindagi and PuzzleSocial [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Professional fees and transaction taxes | 500,000 | ||||||||
Fair value of contingent consideration liability | $ 0 |
Acquisitions - Schedule of Purc
Acquisitions - Schedule of Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 12, 2017 | Feb. 14, 2017 | Dec. 31, 2016 | Jul. 02, 2016 | Jan. 01, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||||
Estimated Fair Value, Goodwill | $ 730,464 | $ 613,335 | $ 657,671 | ||||
Harpan LLC [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated Fair Value, Goodwill | $ 14,610 | ||||||
Estimated Fair Value, Total | 35,081 | ||||||
Harpan LLC [Member] | Developed Technology [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated Fair Value, Intangible assets | $ 20,471 | ||||||
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated Fair Value, Goodwill | $ 72,120 | ||||||
Estimated Fair Value, Total | 98,620 | ||||||
Estimated Fair Value, Net tangible assets acquired | 500 | ||||||
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | Developed Technology [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated Fair Value, Intangible assets | 24,000 | ||||||
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | Trade Names [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated Fair Value, Intangible assets | $ 2,000 | ||||||
Zindagi [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated Fair Value, Goodwill | $ 10,503 | ||||||
Estimated Fair Value, Total | 13,760 | ||||||
Zindagi [Member] | Developed Technology [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated Fair Value, Intangible assets | $ 3,257 | ||||||
PuzzleSocial [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated Fair Value, Goodwill | $ 11,811 | ||||||
Estimated Fair Value, Total | 20,429 | ||||||
Estimated Fair Value, Net tangible assets acquired | 2,144 | ||||||
Deferred tax liabilities | (3,948) | ||||||
PuzzleSocial [Member] | Developed Technology [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated Fair Value, Intangible assets | 6,923 | ||||||
PuzzleSocial [Member] | Customer Base [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Estimated Fair Value, Intangible assets | $ 3,499 |
Acquisitions - Schedule of Pu51
Acquisitions - Schedule of Purchase Price Allocation (Parenthetical) (Detail) | Dec. 12, 2017 | Feb. 14, 2017 | Jul. 02, 2016 | Jan. 02, 2016 |
Harpan LLC [Member] | Developed Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets, useful life | 5 years | |||
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | Developed Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets, useful life | 5 years | |||
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | Trade Names [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets, useful life | 7 years | |||
Zindagi [Member] | Developed Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets, useful life | 3 years | |||
PuzzleSocial [Member] | Developed Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets, useful life | 4 years 6 months | |||
PuzzleSocial [Member] | Customer Base [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets, useful life | 1 year |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets, Net - Schedule of Changes to Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill Roll Forward | ||
Goodwill, beginning balance | $ 613,335 | $ 657,671 |
Additions | 86,730 | 23,191 |
Foreign currency translation and other adjustments | 30,399 | (67,527) |
Goodwill, ending balance | $ 730,464 | $ 613,335 |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets, Net - Schedule of Changes to Goodwill (Parenthetical) (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill Roll Forward | |||
Accumulated impairment losses | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset54
Goodwill and Intangible Assets, Net - Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 230,278 | $ 172,824 |
Accumulated Amortization | (166,020) | (147,394) |
Net Book Value | 64,258 | 25,430 |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 197,908 | 150,826 |
Accumulated Amortization | (147,427) | (132,123) |
Net Book Value | 50,481 | 18,703 |
Trademarks, Branding and Domain Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 18,272 | 16,290 |
Accumulated Amortization | (10,152) | (10,063) |
Net Book Value | 8,120 | 6,227 |
Noncompetition Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 8,390 | |
Accumulated Amortization | (3,079) | |
Net Book Value | 5,311 | |
Acquired Lease Intangibles [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 5,708 | 5,708 |
Accumulated Amortization | (5,362) | (5,208) |
Net Book Value | $ 346 | $ 500 |
Goodwill and Intangible Asset55
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 4 years 1 month 6 days | ||
Impairment charges | $ 20,700 | ||
Trademarks, Branding and Domain Names [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 6,100,000 | 6,100,000 | |
Weighted-average remaining useful lives of acquired intangible assets | 7 years | ||
Developed Technology [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 4 years 3 months 18 days | ||
Acquired Lease Intangibles [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 2 years 3 months 18 days | ||
Other Intangible Assets [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 16,200,000 | $ 29,000,000 | $ 27,400,000 |
Noncompetition Agreements [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 1 year 6 months |
Goodwill and Intangible Asset56
Goodwill and Intangible Assets, Net - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | |
2,018 | $ 17,807 |
2,019 | 12,965 |
2,020 | 11,712 |
2,021 | 9,315 |
2,022 | 5,768 |
Thereafter | 571 |
Total | $ 58,138 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||||||||
Federal corporate tax rate | 35.00% | 35.00% | 35.00% | ||||||
Tax cuts and jobs act of 2017, change in tax rate, in individuals compensation subjected to cap deductibility | $ 1,000,000 | ||||||||
Recognised provisional tax benefit | $ (5,000,000) | ||||||||
Deferred tax assets and liabilities, net of valuation allowance | 2,400,000 | ||||||||
Alternative minimum tax credit refund | 2,600,000 | ||||||||
Effective income tax rate reconciliation, repatriation of foreign earnings | 48,800,000 | ||||||||
Unrecognized Tax Benefits | $ 160,040,000 | $ 151,100,000 | 160,040,000 | 160,040,000 | $ 151,100,000 | $ 142,845,000 | $ 140,889,000 | ||
Unrecognized tax benefits that might impact effective tax rate | 160,000,000 | 151,100,000 | 160,000,000 | 160,000,000 | 151,100,000 | ||||
Tax benefits | 9,000,000 | 10,300,000 | (10,944,000) | (3,442,000) | 8,672,000 | ||||
Interest and penalties recorded | 300,000 | 100,000 | $ 0 | ||||||
Liability for uncertain tax positions | 1,000,000 | $ 700,000 | 1,000,000 | 1,000,000 | $ 700,000 | ||||
Deferred Tax Assets [Member] | |||||||||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||||||||
Unrecognized Tax Benefits | 151,000,000 | 151,000,000 | 151,000,000 | ||||||
Other Noncurrent Liabilities [Member] | |||||||||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||||||||
Unrecognized Tax Benefits | $ 9,000,000 | $ 9,000,000 | $ 9,000,000 | ||||||
ASU 2016-09 [Member] | |||||||||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||||||||
Offsetting valuation allowance | $ 97,300,000 | ||||||||
Scenario Forecast [Member] | |||||||||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | |||||||||
Federal corporate tax rate | 21.00% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (6,081) | $ (62,037) | $ (83,432) |
International | 43,664 | (42,694) | (46,750) |
Income (loss) before income taxes | $ 37,583 | $ (104,731) | $ (130,182) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for (Benefit from) Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current: | |||||
Federal | $ (2,132) | $ (30) | $ (30) | ||
State | 142 | 2 | (2,863) | ||
Foreign | 13,562 | 7,178 | 3,817 | ||
Total current tax expense | 11,572 | 7,150 | 924 | ||
Deferred: | |||||
Federal | (1,231) | (2,809) | (8,818) | ||
State | 300 | (20) | (504) | ||
Foreign | 303 | (879) | (274) | ||
Total deferred tax expense (benefit) | (628) | (3,708) | (9,596) | ||
Provision for (benefit from) income taxes | $ (9,000) | $ (10,300) | $ 10,944 | $ 3,442 | $ (8,672) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Statutory Income Tax Provision (Benefit) to Effective Income Tax Provision (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||
Expected provision (benefit) at U.S. federal statutory rate of 35% | $ 13,154 | $ (36,656) | $ (45,564) | ||
State income taxes - net of federal benefit | 142 | 2 | (2,863) | ||
Income taxed at foreign rates | (3,643) | 20,112 | 18,406 | ||
Equity-based compensation | (2,898) | 4,295 | 1,125 | ||
Tax reserve for uncertain tax positions | 3,101 | 2,382 | 1,827 | ||
Change in valuation allowance | (51,976) | 14,786 | 17,526 | ||
Impact of change in enacted tax rates | 48,296 | 69 | (18) | ||
Acquisition costs | 110 | 650 | |||
Contingent consideration | (252) | (2,781) | |||
Officer's compensation limitation | 2,582 | ||||
Investment in subsidiaries | 1,676 | ||||
Other | 762 | 1,123 | 239 | ||
Provision for (benefit from) income taxes | $ (9,000) | $ (10,300) | $ 10,944 | $ 3,442 | $ (8,672) |
Income Taxes - Reconciliation61
Income Taxes - Reconciliation of Federal Statutory Income Tax Provision (Benefit) to Effective Income Tax Provision (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Expected benefit at U.S. federal statutory rate, Percent | 35.00% | 35.00% | 35.00% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 66,680 | $ 53,474 |
Tax credit carryforwards | 98,718 | 52,564 |
Acquired intangible assets | 25,692 | 26,110 |
Stock-based compensation | 7,467 | 16,087 |
Accrued expenses | 5,505 | 8,605 |
Other accrued compensation | 4,747 | 5,059 |
Charitable contributions | 2,886 | 4,495 |
State taxes | 248 | 3,168 |
Deferred revenue | 312 | 481 |
Other | 423 | |
Total deferred tax assets | 212,678 | 170,043 |
Less: Valuation allowance | (209,652) | (164,907) |
Deferred tax assets, net of valuation allowance | 3,026 | 5,136 |
Deferred tax liabilities: | ||
Goodwill | (3,210) | (3,396) |
Deferred rent | (1,073) | (69) |
Depreciation | (3,839) | (7,215) |
Other | (247) | |
Total deferred tax liabilities | (8,122) | (10,927) |
Net deferred taxes | $ (5,096) | $ (5,791) |
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, 2017USD ($) | |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, amount | $ 299,631 |
Tax credit carryforward, amount | $ 82,617 |
State [Member] | Earliest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration year | 2,021 |
Tax credit carryforward, expiration year | 2,019 |
State [Member] | Latest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration year | 2,036 |
Tax credit carryforward, expiration | indefinite |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, amount | $ 409,273 |
Tax credit carryforward, amount | $ 89,218 |
Federal [Member] | Earliest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration year | 2,029 |
Tax credit carryforward, expiration year | 2,030 |
Federal [Member] | Latest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration year | 2,036 |
Tax credit carryforward, expiration year | 2,037 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning balance | $ 151,100 | $ 142,845 | $ 140,889 |
Additions based on tax positions related to current | 8,598 | 9,043 | 8,876 |
Additions for tax positions of prior years | 427 | 68 | 82 |
Reductions for tax positions of prior years | (31) | (856) | (2,817) |
Decreases related to settlements of prior year tax positions | (54) | (4,185) | |
Unrecognized tax benefits, ending balance | $ 160,040 | $ 151,100 | $ 142,845 |
Other Current and Non-Current65
Other Current and Non-Current Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Accrued accounts payable | $ 38,046 | $ 24,119 |
Accrued compensation liability | 33,815 | 22,554 |
Accrued restructuring liability | 3,674 | 4,987 |
Accrued payable from acquisitions | 12,800 | 5,990 |
Accrued lease incentive obligation | 20,059 | |
Other current liabilities | 14,695 | 18,104 |
Total other current liabilities | $ 123,089 | $ 75,754 |
Other Current and Non-Current66
Other Current and Non-Current Liabilities - Schedule of Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Accrued payable from acquisitions | $ 20,000 | $ 3,951 |
Accrued restructuring liability | 10,856 | 14,485 |
Unrecognized tax liability | 8,975 | 52,779 |
Other non-current liabilities | 9,081 | 4,381 |
Total other non-current liabilities | $ 48,912 | $ 75,596 |
Restructuring - Summary of Net
Restructuring - Summary of Net Restructuring Charges Within Consolidated Statement of Operation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring charges | $ 3,184 | $ 1,938 | $ 36,481 |
Cost of Revenue [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring charges | 1,066 | ||
Research and Development [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring charges | 2,347 | 124 | 14,081 |
Sales and Marketing [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring charges | 149 | 787 | |
General and Administrative [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring charges | $ 688 | $ 1,814 | $ 20,547 |
Restructuring - Summary of Sign
Restructuring - Summary of Significant Restructuring Plan Activity Related To Employees And Other Charges (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring liability, Beginning balance | $ 19,388 | $ 26,406 | |
Restructuring expense and adjustments | 3,175 | 926 | |
Cash payments | (8,033) | (7,944) | |
Restructuring liability, Ending balance | 14,530 | 19,388 | $ 26,406 |
Cumulative costs to date, as of December 31, 2017 | 37,950 | ||
Total costs expected to be incurred, as of December 31, 2017 | 39,106 | ||
Q4 2017 Restructuring Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expense and adjustments | 1,466 | ||
Cash payments | (1,095) | ||
Restructuring liability, Ending balance | 371 | ||
Cumulative costs to date, as of December 31, 2017 | 1,466 | ||
Total costs expected to be incurred, as of December 31, 2017 | 2,610 | ||
Q3 2017 Restructuring Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expense and adjustments | 918 | ||
Cash payments | (911) | ||
Restructuring liability, Ending balance | 7 | ||
Cumulative costs to date, as of December 31, 2017 | 918 | ||
Total costs expected to be incurred, as of December 31, 2017 | 920 | ||
Q2 2017 Restructuring Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expense and adjustments | 1,242 | ||
Cash payments | (1,242) | ||
Cumulative costs to date, as of December 31, 2017 | 1,242 | ||
Total costs expected to be incurred, as of December 31, 2017 | 1,252 | ||
Q2 2015 Restructuring Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring liability, Beginning balance | 19,388 | 26,406 | |
Restructuring expense and adjustments | (451) | 926 | 33,800 |
Cash payments | (4,785) | (7,944) | |
Restructuring liability, Ending balance | 14,152 | $ 19,388 | $ 26,406 |
Cumulative costs to date, as of December 31, 2017 | 34,324 | ||
Total costs expected to be incurred, as of December 31, 2017 | $ 34,324 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses (benefits) | $ 3,175 | $ 926 | |
Net restructuring charge | 3,184 | 1,938 | $ 36,481 |
Q4 2017 Restructuring Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses (benefits) | 1,466 | ||
Net restructuring charge | $ 1,500 | ||
Restructuring liability, expected paid out period | 1 year 10 months 24 days | ||
Q3 2017 Restructuring Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses (benefits) | $ 918 | ||
Net restructuring charge | 900 | ||
Employee severance Costs | 600 | ||
Other costs | 300 | ||
Q2 2017 Restructuring Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses (benefits) | 1,242 | ||
Net restructuring charge | 1,200 | ||
Employee severance Costs | 1,100 | ||
Other costs | 100 | ||
Q2 2015 Restructuring Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses (benefits) | $ (451) | 926 | 33,800 |
Restructuring liability, expected paid out period | 4 years 4 months 24 days | ||
Employee severance Costs | 100 | 10,700 | |
Other costs | $ 400 | 100 | |
Lease termination costs | $ 700 | $ 23,100 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | Nov. 30, 2011shares | Dec. 31, 2017USD ($)Voting_Rights$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 12, 2017USD ($) |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | |||||
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, Class B 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, Class B, 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 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 our initial public offering, upon sale or transfer of shares of either Class B or Class C common stock, whether or not for value, each such transferred or sold 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 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 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 and Class C common stock may not be reissued. | ||||
Maximum percentage of common stock outstanding required for conversion | 10.00% | ||||
Treasury stock acquired, average cost per share | $ / shares | $ 2.40 | $ 2.60 | |||
Stock repurchase program, aggregate number of shares repurchased value | $ 101,900,000 | $ 98,900,000 | |||
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. | ||||
Aggregated intrinsic value of stock options exercised | $ 4,900,000 | 8,100,000 | 9,100,000 | ||
Grant date fair value of options vested | 8,000,000 | 6,000,000 | 10,200,000 | ||
Total unrecognized stock based compensation expense | 20,800,000 | ||||
Total stock-based expense | $ 64,515,000 | 107,461,000 | 131,575,000 | ||
Defined contribution plan, description of employees contribution | Participating employees may contribute up to 90% of their eligible compensation, or the statutory limit, whichever is lower. | ||||
Percentage of employees contribution, maximum of eligible compensation | 90.00% | ||||
Employer contribution amount for each dollar a participating employee contributed | $ 1 | $ 1 | $ 1 | ||
Percentage of employer contribution, maximum of each employee eligible compensation | 3.00% | 3.00% | 3.00% | ||
Savings plan, total expense | $ 4,500,000 | $ 4,500,000 | $ 4,800,000 | ||
Zynga Stock Options [Member] | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | |||||
Contractual term | 10 years | ||||
Weighted average recognition period | 3 years 6 months | ||||
Zynga Stock Options [Member] | Minimum [Member] | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | |||||
Share-based compensation awards vesting period | 4 years | ||||
Option grants vesting percentage | 20.00% | ||||
Period over which stock options vest on monthly basis | 36 months | ||||
Zynga Stock Options [Member] | Maximum [Member] | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | |||||
Share-based compensation awards vesting period | 5 years | ||||
Option grants vesting percentage | 25.00% | ||||
Period over which stock options vest on monthly basis | 48 months | ||||
Restricted Stock Units (ZSUs) [Member] | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | |||||
Share-based compensation awards vesting period | 4 years | ||||
Weighted average recognition period | 2 years 4 months 24 days | ||||
Total unrecognized stock based compensation expense, restricted shares | $ 117,200,000 | ||||
Performance-Based Awards [Member] | Executive Officer [Member] | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | |||||
Share-based compensation vesting terms | Generally, if the performance criteria are satisfied, one-half of the award vests immediately and the other half vests on the one-year anniversary. | ||||
Total stock-based expense | $ 0 | ||||
Performance-Based Awards [Member] | Certain employees [Member] | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | |||||
Share-based compensation vesting terms | Generally, if the performance criteria are satisfied, 25% of the award will vest immediately or soon after with the remaining vesting ratably for each quarter or six month periods thereafter. | ||||
Total stock-based expense | $ 2,400,000 | ||||
Incremental compensation costs recorded at the time of modifications | $ 0 | ||||
2016 Share Repurchase Program [Member] | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | |||||
Treasury stock acquired, average cost per share | $ / shares | $ 2.78 | $ 2.76 | |||
Stock repurchase program, aggregate number of shares repurchased value | $ 101,000,000 | $ 34,200,000 | |||
Common Class A [Member] | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | |||||
Voting rights per share | Voting_Rights | 1 | ||||
Repurchase of common stock | shares | 42,200,000 | 37,900,000 | |||
Annual increase percentage of common stock shares outstanding | 4.00% | ||||
Common Class A [Member] | 2011 ESPP [Member] | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | |||||
Percentage of capital stock outstanding | 2.00% | ||||
Common stock capital shares reserved for future issuance increases | shares | 25,000,000 | ||||
Share-based compensation arrangement by share-based payment award, maximum employee shares available for purchase | shares | 5,000 | ||||
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 | $ 2,600,000 | ||||
Stock-based compensation expense related to 2011 ESPP | $ 2,300,000 | ||||
Common Class A [Member] | 2016 Share Repurchase Program [Member] | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | |||||
Repurchase of common stock | shares | 36,300,000 | 12,300,000 | |||
Common Class B [Member] | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | |||||
Voting rights per share | Voting_Rights | 7 | ||||
Common Class C [Member] | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award [Table] | |||||
Voting rights per share | Voting_Rights | 70 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense Related to Grants of Employee Stock Options, Restricted Stock Units (ZSUs) and Performance-Based Awards (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 64,515 | $ 107,461 | $ 131,575 |
Cost of Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 1,838 | 3,720 | 4,547 |
Research and Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 42,176 | 84,236 | 94,548 |
Sales and Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 7,281 | 7,254 | 7,501 |
General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 13,220 | $ 12,251 | $ 24,979 |
Stockholders' Equity - Weighted
Stockholders' Equity - Weighted-Average Grant Date Fair Value of Stock Options and Related Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Expected term, in years | 6 years | 6 years | 6 years |
Risk-free interest rates, minimum | 2.12% | 1.53% | 1.65% |
Expected volatility, minimum | 46.00% | 50.00% | 53.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average estimated fair value of stock options granted during the year | $ 1.75 | $ 1.30 | $ 1.51 |
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, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Options Outstanding, Beginning balance | 36,858 | |
Stock Options, Granted | 1,681 | |
Stock Options, Forfeited, expired and cancelled | (3,084) | |
Stock Options, Exercised | (2,491) | |
Stock Options Outstanding, Ending balance | 32,964 | 36,858 |
Stock Options, Exercisable options | 16,880 | |
Stock Options, Vested and expected to vest | 32,964 | |
Outstanding Options, Weighted Average Exercise Price, Beginning Balance | $ 2.08 | |
Weighted Average Exercise Price, Granted | 3.76 | |
Weighted Average Exercise Price, Forfeited, expired and cancelled | 3.63 | |
Weighted Average Exercise Price, Exercised | 1.33 | |
Outstanding Options, Weighted Average Exercise Price, Ending Balance | 2.07 | $ 2.08 |
Weighted-Average Exercise Price, Exercisable options | 1.43 | |
Weighted-Average Exercise Price, Vested and expected to vest | $ 2.07 | |
Outstanding Options, Aggregate Intrinsic Value of Stock Options Outstanding | $ 64,114 | $ 26,411 |
Aggregate Intrinsic Value of Stock Options Outstanding, Exercisable options | 43,878 | |
Aggregate Intrinsic Value of Stock Options, Vested and expected to vest | $ 64,114 | |
Weighted Average Contractual Term (in years) | 6 years 3 months 25 days | 6 years 9 months 21 days |
Weighted-Average Contractual Term (in years), Exercisable options | 4 years 1 month 9 days | |
Weighted-Average Contractual Term (in years), Vested and expected to vest | 6 years 3 months 25 days |
Stockholders' Equity - Schedu74
Stockholders' Equity - Schedule of Share Based Compensation Restricted Stock Units Award Activity (Detail) - Restricted Stock Units (ZSUs) [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Nonvested Outstanding Shares, Beginning balance | 59,452 | |
Nonvested Shares, Granted | 22,210 | |
Nonvested Shares, Vested | (20,774) | |
Nonvested Shares, Forfeited | (15,410) | |
Nonvested Outstanding Shares, Ending balance | 45,478 | |
Weighted Average Grant Date Fair Value, Beginning balance | $ 2.66 | |
Weighted Average Grant Date Fair Value, Granted | 3.52 | |
Weighted Average Grant Date Fair Value, Vested | 2.83 | |
Weighted Average Grant Date Fair Value, Forfeited | 2.67 | |
Weighted Average Grant Date Fair Value, Ending balance | $ 3 | |
Nonvested Aggregated Intrinsic Value, Unvested | $ 181,912 | $ 152,792 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Reserved for Future Issuance (Detail) shares in Thousands | Dec. 31, 2017shares |
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 | 298,235 |
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 | 126,918 |
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 | 92,875 |
Zynga Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance | 32,964 |
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 | 45,478 |
Stockholders' Equity - Schedu76
Stockholders' Equity - Schedule of Accumulated Other Comprehensive Income Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance, Value | $ 1,580,664 | $ 1,786,901 | $ 1,895,692 |
Other comprehensive income (loss) | 35,197 | (76,306) | (23,213) |
Ending balance, Value | 1,641,240 | 1,580,664 | 1,786,901 |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance, Value | (128,671) | (52,261) | |
Other comprehensive income (loss) before reclassifications, net of tax | 35,352 | (76,410) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | |
Other comprehensive income (loss) | 35,352 | (76,410) | |
Ending balance, Value | (93,319) | (128,671) | (52,261) |
Unrealized Gains (Losses) on Available-for-Sale Marketable Securities [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance, Value | (23) | (127) | |
Other comprehensive income (loss) before reclassifications, net of tax | (155) | 104 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | |
Other comprehensive income (loss) | (155) | 104 | |
Ending balance, Value | (178) | (23) | (127) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance, Value | (128,694) | (52,388) | (29,175) |
Other comprehensive income (loss) before reclassifications, net of tax | 35,197 | (76,306) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | |
Other comprehensive income (loss) | 35,197 | (76,306) | (23,213) |
Ending balance, Value | $ (93,497) | $ (128,694) | $ (52,388) |
Net Income (Loss) Per Share o77
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
BASIC: | |||
Net income (loss) attributable to common stockholders – basic | $ 26,639 | $ (108,173) | $ (121,510) |
Weighted-average common shares outstanding – basic | 869,067 | 878,827 | 913,511 |
Net income (loss) per share attributable to common stockholders – basic | $ 0.03 | $ (0.12) | $ (0.13) |
DILUTED: | |||
Weighted-average common shares outstanding – basic | 869,067 | 878,827 | 913,511 |
Weighted-average common shares outstanding-diluted | 897,165 | 878,827 | 913,511 |
Net income (loss) per share attributable to common stockholders – diluted | $ 0.03 | $ (0.12) | $ (0.13) |
Common Class A [Member] | |||
BASIC: | |||
Net income (loss) attributable to common stockholders – basic | $ 23,795 | $ (92,988) | $ (103,628) |
Weighted-average common shares outstanding – basic | 776,625 | 755,460 | 779,071 |
Net income (loss) per share attributable to common stockholders – basic | $ 0.03 | $ (0.12) | $ (0.13) |
DILUTED: | |||
Net income (loss) attributable to common stockholders-basic | $ 23,795 | $ (92,988) | $ (103,628) |
Net income (loss) attributable to common stockholders-diluted | $ 26,628 | $ (108,173) | $ (121,510) |
Weighted-average common shares outstanding – basic | 776,625 | 755,460 | 779,071 |
Weighted-average common shares outstanding-diluted | 897,165 | 878,827 | 913,511 |
Net income (loss) per share attributable to common stockholders – diluted | $ 0.03 | $ (0.12) | $ (0.13) |
Common Class A [Member] | Stock options and employee stock purchase plan [Member] | |||
DILUTED: | |||
Weighted-average effect of dilutive securities | 9,879 | ||
Common Class A [Member] | Restricted Stock Units (ZSUs) [Member] | |||
DILUTED: | |||
Weighted-average effect of dilutive securities | 16,935 | ||
Common Class A [Member] | Performance Based Restricted Stock Units (ZSUs) [Member] | |||
DILUTED: | |||
Weighted-average effect of dilutive securities | 1,284 | ||
Common Class B [Member] | |||
BASIC: | |||
Net income (loss) attributable to common stockholders – basic | $ 2,204 | $ (12,660) | $ (15,153) |
Weighted-average common shares outstanding – basic | 71,925 | 102,850 | 113,923 |
Net income (loss) per share attributable to common stockholders – basic | $ 0.03 | $ (0.12) | $ (0.13) |
DILUTED: | |||
Net income (loss) attributable to common stockholders-basic | $ 2,204 | $ (12,660) | $ (15,153) |
Net income (loss) attributable to common stockholders-diluted | $ 2,384 | $ (12,660) | $ (15,153) |
Weighted-average common shares outstanding – basic | 71,925 | 102,850 | 113,923 |
Weighted-average common shares outstanding-diluted | 80,315 | 102,850 | 113,923 |
Net income (loss) per share attributable to common stockholders – diluted | $ 0.03 | $ (0.12) | $ (0.13) |
Reallocation of net income (loss) to Class B and Class C shares | $ 180 | ||
Common Class B [Member] | Stock options and employee stock purchase plan [Member] | |||
DILUTED: | |||
Weighted-average effect of dilutive securities | 8,390 | ||
Common Class C [Member] | |||
BASIC: | |||
Net income (loss) attributable to common stockholders – basic | $ 629 | $ (2,525) | $ (2,729) |
Weighted-average common shares outstanding – basic | 20,517 | 20,517 | 20,517 |
Net income (loss) per share attributable to common stockholders – basic | $ 0.03 | $ (0.12) | $ (0.13) |
DILUTED: | |||
Net income (loss) attributable to common stockholders-basic | $ 629 | $ (2,525) | $ (2,729) |
Net income (loss) attributable to common stockholders-diluted | $ 609 | $ (2,525) | $ (2,729) |
Weighted-average common shares outstanding – basic | 20,517 | 20,517 | 20,517 |
Weighted-average common shares outstanding-diluted | 20,517 | 20,517 | 20,517 |
Net income (loss) per share attributable to common stockholders – diluted | $ 0.03 | $ (0.12) | $ (0.13) |
Reallocation of net income (loss) to Class B and Class C shares | $ (20) | ||
Class C Convert To Class A [Member] | Common Class A [Member] | |||
DILUTED: | |||
Reallocation of net income (loss) as a result of common stock class conversion | $ 629 | $ (2,525) | $ (2,729) |
Conversion of common stock class | 20,517 | 20,517 | 20,517 |
Class B convert to Class A [Member] | Common Class A [Member] | |||
DILUTED: | |||
Reallocation of net income (loss) as a result of common stock class conversion | $ 2,204 | $ (12,660) | $ (15,153) |
Conversion of common stock class | 71,925 | 102,850 | 113,923 |
Net Income (Loss) Per Share o78
Net Income (Loss) Per Share of Common Stock - Shares excluded from Calculation of Diluted Net Income (Loss) per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 22,767 | 93,462 | 101,892 |
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 | 17,331 | 28,380 | 29,412 |
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 | 349 | 3,899 | 8,716 |
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 | 5,087 | 61,183 | 63,764 |
Leases - Addtional Information
Leases - Addtional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($)ft² | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Lessor Lease Description [Line Items] | ||||
Total rental payments to be received | $ 166,413 | |||
Rent expense on operating leases | $ 5,700 | $ 5,300 | $ 4,500 | |
San Francisco, California [Member] | ||||
Lessor Lease Description [Line Items] | ||||
Area of Office Space Leased | ft² | 287,000 | |||
Lease expiration date | Feb. 28, 2027 | |||
Total rental payments to be received | $ 167,300 | |||
Building occupancy rate by tenant | 43.00% | |||
Incentive Receivable and obligation to pay for tenant improvements | $ 24,900 | |||
Accrued deferred lease origination costs | $ 6,500 |
Leases - Schedule of Cash to be
Leases - Schedule of Cash to be Received Future Minimum Rentals for Noncancelable Lease Term (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 5,534 |
2,019 | 11,345 |
2,020 | 14,369 |
2,021 | 20,287 |
2,022 | 20,896 |
Thereafter | 93,982 |
Total | $ 166,413 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments for Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 8,301 |
2,019 | 7,891 |
2,020 | 5,777 |
2,021 | 4,988 |
2,022 | 1,574 |
Total | $ 28,531 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Contractual Royalty Payments to Licensors and Marketing Commitments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,018 | $ 8,875 |
2,019 | 8,750 |
2,020 | 2,250 |
Total | $ 19,875 |
Commitments and Contingencies83
Commitments and Contingencies - Schedule of Future Minimum Purchase Commitments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,018 | $ 8,048 |
2,019 | 2,246 |
2,020 | 383 |
Total | $ 10,677 |
Commitments and Contingencies84
Commitments and Contingencies - Additional Information (Detail) | Dec. 22, 2017USD ($) | May 01, 2017USD ($) | Mar. 31, 2017USD ($)Case | Nov. 02, 2016USD ($) | Apr. 04, 2014Case | Mar. 11, 2013Case | Nov. 19, 2012Case | Aug. 16, 2012Case | Aug. 03, 2012Case | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Loss Contingencies [Line Items] | |||||||||||
Uncertain income tax position liability | $ 9,000,000 | ||||||||||
Delaware [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Claims filed | Case | 1 | ||||||||||
Claims settled | Case | 1 | ||||||||||
Stockholder Derivative Lawsuits [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Claims filed | Case | 8 | ||||||||||
Zynga Shareholder Derivative Litigation [Member] | San Francisco [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Claims filed | Case | 3 | ||||||||||
Zynga Inc. Derivative Litigation [Member] | Northern California [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Claims filed | Case | 4 | ||||||||||
Sandys v. Pincus [Member] | Delaware [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Claims filed | Case | 1 | ||||||||||
Mayer et al. v. Zynga [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Payment for legal settlement | $ 11,900,000 | ||||||||||
Claims filed | Case | 5 | ||||||||||
Compensatory damages held in escrow | $ 1,100,000 | $ 875,000 | |||||||||
Loss contingencies for counter claims | $ 2,500,000 | ||||||||||
Final settlement agreement, executed date | December 22, 2017 | ||||||||||
Mayer et al. v. Zynga [Member] | Other Current Liabilities [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Settlement payable obligation | $ 11,900,000 | ||||||||||
Mayer et al. v. Zynga [Member] | Minimum [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Entitled to compensatory damages | $ 60,000,000 | ||||||||||
Revolving Line of Credit [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Line of credit facility maximum borrowing capacity | $ 200,000,000 | ||||||||||
Line of credit facility commitment fee amount | $ 100,000 | ||||||||||
Line of credit facility, termination date | Nov. 2, 2016 | ||||||||||
Scenario Forecast [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Payment for legal settlement | $ 11,900,000 |
Geographical Information - Reve
Geographical Information - Revenue by Geographical Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 861,390 | $ 741,420 | $ 764,717 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 567,315 | 507,473 | 506,268 |
All Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 294,075 | $ 233,947 | $ 258,449 |
Geographical Information - Prop
Geographical Information - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 266,589 | $ 269,439 | $ 273,221 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 263,037 | 267,324 | 269,721 |
All Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 3,552 | $ 2,115 | $ 3,500 |
Financial Statement Schedules87
Financial Statement Schedules - Schedule II - Valuation and Qualifying Accounts (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Valuation And Qualifying Accounts [Abstract] | |
Balance at Beginning of Year | $ 0 |
Balance at End of Year | $ 0 |