Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ZNGA | ||
Entity Registrant Name | Zynga Inc | ||
Entity Central Index Key | 0001439404 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Class A common stock, par value $0.00000625 per share | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 001-35375 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 42-1733483 | ||
Entity Address, Address Line One | 699 Eighth Street | ||
Entity Address, City or Town | San Francisco | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94103 | ||
City Area Code | 855 | ||
Local Phone Number | 449-9642 | ||
Entity Common Stock, Shares Outstanding | 1,082,996,975 | ||
Entity Public Float | $ 8.5 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the 2021 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. The proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2020. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,364.4 | $ 423.3 |
Short-term investments | 208.4 | 938.2 |
Accounts receivable, net of allowance of $0.5 at December 31, 2020 and $0.0 at December 31, 2019 | 217.5 | 140.1 |
Restricted cash | 30 | |
Prepaid expenses | 40 | 27.5 |
Other current assets | 29.5 | 16.6 |
Total current assets | 1,859.8 | 1,575.7 |
Long-term investments | 2 | 175.3 |
Goodwill | 3,160.8 | 1,460.9 |
Intangible assets, net | 838.1 | 233 |
Property and equipment, net | 39.3 | 25.8 |
Right-of-use assets | 131.9 | 137 |
Restricted cash | 136 | |
Prepaid expenses | 21.6 | 37.8 |
Other non-current assets | 17 | 15.1 |
Total assets | 6,206.5 | 3,660.6 |
Current liabilities: | ||
Accounts payable | 57.2 | 27.8 |
Income tax payable | 39.6 | 0.6 |
Deferred revenue | 747.7 | 433 |
Operating lease liabilities | 18.5 | 15.8 |
Other current liabilities | 462.4 | 314.8 |
Total current liabilities | 1,325.4 | 792 |
Convertible senior notes, net | 1,289.9 | 570.5 |
Deferred revenue | 0.3 | 0.5 |
Deferred tax liabilities, net | 126.3 | 33.5 |
Non-current operating lease liabilities | 122 | 130.3 |
Other non-current liabilities | 401.1 | 158.4 |
Total liabilities | 3,265 | 1,685.2 |
Stockholders’ equity: | ||
Common stock, $0.00000625 par value, and additional paid-in capital - authorized shares: 2,020.5; shares outstanding: 1,081.6 shares as of December 31, 2020 and 950.0 as of December 31, 2019 | 5,276.5 | 3,898.6 |
Accumulated other comprehensive income (loss) | (50.7) | (125.9) |
Accumulated deficit | (2,284.3) | (1,797.3) |
Total stockholders’ equity | 2,941.5 | 1,975.4 |
Total liabilities and stockholders’ equity | $ 6,206.5 | $ 3,660.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable, allowance | $ 0.5 | $ 0 |
Common Class A [Member] | ||
Common stock, par value | $ 0.00000625 | $ 0.00000625 |
Common stock, shares authorized | 2,020,500,000 | 2,020,500,000 |
Common stock, shares outstanding | 1,081,600,000 | 950,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue: | |||
Total revenue | $ 1,974.8 | $ 1,321.7 | $ 907.2 |
Costs and expenses: | |||
Cost of revenue | 811.8 | 524.1 | 304.7 |
Research and development | 713.7 | 505.9 | 270.3 |
Sales and marketing | 683.5 | 464.1 | 226.5 |
General and administrative | 136 | 99.8 | 98.9 |
Total costs and expenses | 2,345 | 1,593.9 | 900.4 |
Income (loss) from operations | (370.2) | (272.2) | 6.8 |
Interest income | 11.6 | 14 | 6.6 |
Interest expense | (30.3) | (17) | (0.3) |
Other income (expense), net | (16.5) | 322.5 | 13.4 |
Income (loss) before income taxes | (405.4) | 47.3 | 26.5 |
Provision for (benefit from) income taxes | 24 | 5.4 | 11 |
Net income (loss) | $ (429.4) | $ 41.9 | $ 15.5 |
Net income (loss) per share attributable to common stockholders: | |||
Basic | $ (0.42) | $ 0.04 | $ 0.02 |
Diluted | $ (0.42) | $ 0.04 | $ 0.02 |
Weighted average common shares used to compute net income (loss) per share attributable to common stockholders: | |||
Basic | 1,016,800 | 938,700 | 862,500 |
Diluted | 1,016,800 | 974,000 | 889,600 |
Online Game [Member] | |||
Revenue: | |||
Total revenue | $ 1,667.2 | $ 1,047.3 | $ 670.9 |
Advertising and Other [Member] | |||
Revenue: | |||
Total revenue | $ 307.6 | $ 274.4 | $ 236.3 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Partners Capital [Abstract] | |||
Net income (loss) | $ (429.4) | $ 41.9 | $ 15.5 |
Other comprehensive income (loss): | |||
Change in foreign currency translation adjustment | 75.3 | (7.7) | (25.2) |
Net change in unrealized gains (losses) on available-for-sale marketable debt securities, net of tax | (0.1) | 0.2 | 0.2 |
Other comprehensive income (loss), net of tax | 75.2 | (7.5) | (25) |
Comprehensive income (loss) | $ (354.2) | $ 34.4 | $ (9.5) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | RSUs [Member] | Revision of Prior Period Change in Accounting Principle Adjustment [Member] | Class A,B, and C Common Stock [Member] | Class A,B, and C Common Stock [Member]RSUs [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Treasury Stock [Member]RSUs [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member]Revision of Prior Period Change in Accounting Principle Adjustment [Member] |
Beginning balance, Value at Dec. 31, 2017 | $ 1,641.3 | $ 3,426.5 | $ (93.4) | $ (1,691.8) | |||||||
Beginning balance, Shares at Dec. 31, 2017 | 870.7 | ||||||||||
Exercise of stock options and ESPP | 10 | 10 | |||||||||
Exercise of stock options and ESPP, Shares | 5.1 | ||||||||||
Vesting of RSUs, net of tax withholdings | $ (25.8) | $ (25.8) | |||||||||
Vesting of RSUs, net of tax withholdings, Shares | 10.6 | ||||||||||
Stock-based compensation expense | 68.2 | 68.2 | |||||||||
Repurchases of common stock, Value | (91.6) | $ (91.6) | |||||||||
Repurchases of common stock, Shares | (25.3) | ||||||||||
Retirements of treasury stock | 117.4 | (117.4) | |||||||||
Adoption of ASU | 2016-09 | $ 4 | $ 4 | |||||||||
Net income (loss) | 15.5 | 15.5 | |||||||||
Other comprehensive income (loss) | (25) | (25) | |||||||||
Ending balance, Value at Dec. 31, 2018 | 1,596.6 | 3,504.7 | (118.4) | (1,789.7) | |||||||
Ending balance, Shares at Dec. 31, 2018 | 861.1 | ||||||||||
Exercise of stock options and ESPP | 17.4 | 17.4 | |||||||||
Exercise of stock options and ESPP, Shares | 12 | ||||||||||
Vesting of RSUs, net of tax withholdings | (49.5) | (49.5) | |||||||||
Vesting of RSUs, net of tax withholdings, Shares | 13.1 | ||||||||||
Acquisition-related common stockissuance | 253.9 | 253.9 | |||||||||
Acquisition-related common stock issuance, Shares | 63.8 | ||||||||||
Stock-based compensation expense | 81.5 | 81.5 | |||||||||
Retirements of treasury stock | 49.5 | (49.5) | |||||||||
Equity component of convertible senior notes | 114.9 | 114.9 | |||||||||
Purchase of capped calls related toissuance of convertible senior notes | (73.8) | (73.8) | |||||||||
Net income (loss) | 41.9 | 41.9 | |||||||||
Other comprehensive income (loss) | (7.5) | (7.5) | |||||||||
Ending balance, Value at Dec. 31, 2019 | 1,975.4 | 3,898.6 | (125.9) | (1,797.3) | |||||||
Ending balance, Shares at Dec. 31, 2019 | 950 | ||||||||||
Exercise of stock options and ESPP | 16.9 | 16.9 | |||||||||
Exercise of stock options and ESPP, Shares | 4.5 | ||||||||||
Vesting of RSUs, net of tax withholdings | $ (57.2) | $ (57.2) | |||||||||
Vesting of RSUs, net of tax withholdings, Shares | 10.5 | ||||||||||
Acquisition-related common stockissuance | 1,137.7 | 1,137.7 | |||||||||
Acquisition-related common stock issuance, Shares | 116.6 | ||||||||||
Stock-based compensation expense | 122.6 | 122.6 | |||||||||
Retirements of treasury stock | $ 57.2 | (57.2) | |||||||||
Equity component of convertible senior notes | 163.7 | 163.7 | |||||||||
Purchase of capped calls related toissuance of convertible senior notes | (63) | (63) | |||||||||
Adoption of ASU | 2016-09 | $ (0.4) | $ (0.4) | |||||||||
Net income (loss) | (429.4) | (429.4) | |||||||||
Other comprehensive income (loss) | 75.2 | 75.2 | |||||||||
Ending balance, Value at Dec. 31, 2020 | $ 2,941.5 | $ 5,276.5 | $ (50.7) | $ (2,284.3) | |||||||
Ending balance, Shares at Dec. 31, 2020 | 1,081.6 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (429.4) | $ 41.9 | $ 15.5 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 142.1 | 79.4 | 42.1 |
Stock-based compensation expense | 122.6 | 81.5 | 68.2 |
(Gain) loss from sale of building, investments and other assets and foreign currency, net | 16 | (314.5) | 0.3 |
(Accretion) amortization on marketable debt securities, net | (2.2) | (4.9) | (2.7) |
Noncash lease expense | 15.9 | 11.2 | |
Noncash interest expense | 26.4 | 13.2 | |
Noncash consideration received | (1.5) | ||
Change in deferred income taxes and other | (32.9) | (16.8) | (3.4) |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 4.8 | (22.5) | 22.6 |
Prepaid expenses and other assets | 9.1 | (15.1) | (18.4) |
Accounts payable | 5.5 | (1) | (0.8) |
Deferred revenue | 291.5 | 234.7 | 62.3 |
Income tax payable | 36.7 | (10.2) | (2.1) |
Operating lease and other liabilities | 223.1 | 185.9 | (13.9) |
Net cash provided by (used in) operating activities | 429.2 | 262.8 | 168.2 |
Cash flows from investing activities: | |||
Purchases of investments | (677.1) | (1,568.2) | (333.8) |
Maturities of investments | 1,038.5 | 451.5 | 519.8 |
Sales of investments | 549.9 | 44.9 | 89.2 |
Acquisition of property and equipment | (18.8) | (23.6) | (11.5) |
Proceeds from sale of building and other property and equipment, net of transaction costs | 0.1 | 580.6 | |
Business combinations, net of cash acquired and restricted cash held in escrow | (942.5) | (301.8) | (222.4) |
Asset acquisitions of intangible assets | (6) | ||
Release of business combination restricted cash held in escrow | (30) | (35) | (22.8) |
Other investing activities, net | (1.8) | (0.3) | 0.5 |
Net cash provided by (used in) investing activities | (87.7) | (851.9) | 19 |
Cash flows from financing activities: | |||
Proceeds from issuance of debt, net of issuance costs | 856.7 | 672.2 | 99.1 |
Purchase of capped calls | (63) | (73.8) | |
Repayment of debt | (101.4) | ||
Taxes paid related to net share settlement of stockholders' equity awards | (57.2) | (49.6) | (25.8) |
Repurchases of common stock | (91.6) | ||
Proceeds from issuance of common stock | 16.9 | 17.4 | 10 |
Acquisition-related contingent consideration payments | (63.6) | (12.9) | |
Other financing activities, net | (0.3) | ||
Net cash provided by (used in) financing activities | 689.8 | 451.6 | (8.3) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 15.8 | 10.8 | (4.6) |
Net change in cash, cash equivalents and restricted cash | 1,047.1 | (126.7) | 174.3 |
Cash, cash equivalents and restricted cash, beginning of period | 453.3 | 580 | 405.7 |
Cash, cash equivalents and restricted cash, end of period | 1,500.4 | 453.3 | 580 |
Supplemental cash flow information: | |||
Income taxes paid | 13.2 | 22.4 | 16.1 |
Interest paid | 1.7 | 2.8 | |
Noncash investing activities: | |||
Acquisition-related common stock issuance | 1,137.7 | $ 253.9 | |
Acquisition-related deferred purchase consideration | $ 23.8 | ||
Software acquired as noncash consideration | $ 1.5 |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Overview and Summary of Significant Accounting Policies | 1. Overview and Summary of Significant Accounting Policies Organization and Description of Business Zynga Inc. (“Zynga,” “we” or the “Company”) is a leading provider of social game services. We develop, market and operate social games as live services played on mobile platforms, such as Apple’s iOS and Google’s Android, social networking platforms, such as Facebook and Snapchat, Personal Computers (PCs), consoles, such as Nintendo’s Switch game console, and other platforms and consoles. Generally, all of our games are free to play, and we generate substantially all of our revenue through the sale of in-game virtual items 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 owned subsidiaries. All 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 average playing period of payers that we use for revenue recognition, useful lives of property and equipment and intangible assets, accrued liabilities, income taxes, the fair value of assets and liabilities acquired through business combinations, contingent consideration obligations, the discount rate used in measuring our operating lease liabilities, the interest rate used in calculating the present value of the initial liability component of our convertible senior notes, stock-based compensation expense and evaluation of recoverability of goodwill, intangible assets and long-lived assets. Actual results could differ materially from those estimates. Segments We have one operating and reportable segment, which is at the consolidated entity 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 substantially all of our revenue from the sale of virtual items and advertising associated with our online games. Online Game. We operate our games as live services that allow players to play for free. Within these games, however, players can purchase virtual currency to obtain virtual goods or virtual goods directly (together, defined as “virtual items” or a “virtual item”) to enhance their game-playing experience. Our identified performance obligation is to display the virtual items within the game over the estimated playing period of the paying player or until they are consumed in game play based upon the nature of the virtual item. Payment is required at time of purchase and the purchase price is a fixed amount. Players can purchase our virtual items through various widely accepted payment methods offered in the games, including Apple iTunes accounts, Google Play accounts and Facebook local currency payments. Payments from players for virtual items are non-refundable and relate to non-cancellable contracts that specify our obligations. Such payments are initially recorded to deferred revenue. For revenue earned through mobile platforms, the transaction price is equal to the gross amount we request to be charged to our player because we are the principal in the transaction. The related platform and payment processing fees are recorded as cost of revenue in the period incurred. For revenue earned on our web based games through Facebook, our players utilize Facebook’s local currency-based payments program to purchase virtual items in our games. For all payment transactions on the Facebook platform, Facebook remits to us 70% of the price we request to be charged to the player for each transaction, which represents the transaction price. Despite being the principal in the transaction, we recognize revenue net of the amounts retained by Facebook for platform and payment processing fees because Facebook may choose to alter our requested price, for example by offering a discount or other incentives to players playing on their platform, and we do not receive information from Facebook indicating the amount of such discounts or incentives or the actual amount paid by our players. Accordingly, we are unable to determine the gross amount paid by our players on the Facebook platform. The satisfaction of our performance obligation is dependent on the nature of the virtual item purchased and as a result, we categorize our virtual items as follows: • Consumable: Consumable virtual items represent items that can be consumed by a specific player action. Common characteristics of consumable virtual items may include items 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 (e.g. chips in Zynga Poker ). For the sale of consumable virtual items, we recognize revenue as the items are consumed (i.e., over time), which approximates one month. • Durable: Durable virtual items represent items that are accessible to the player over an extended period of time (e.g. animals in Farmville 2 ). We recognize revenue from the sale of durable virtual items ratably over the estimated average playing period of payers for the applicable game (i.e., over time), which represents our best estimate of the average life of the durable virtual item. If we do not have the ability to differentiate between revenue attributable to consumable virtual items or durable virtual items in a specific game, we recognize revenue ratably over the estimated average playing period of payers for the applicable game. Historically, we have had sufficient data to separately account for consumable and durable virtual items for substantially all of our web games. However, for our standalone mobile games, we do not have the requisite data to separately account for consumable and durable virtual items and therefore recognize mobile online game revenue ratably over the estimated average playing period of payers. We expect that in future periods, there will be changes in the mix of consumable and durable virtual items offered and sold, reduced virtual item sales in some existing games, changes in estimates of the average playing period of payers 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 durable virtual items or the estimated average playing period of payers 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 of payers 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 of payers by game beginning at the time of a payer’s first purchase in the respective game and ending on a date when that paying player is deemed to be no longer playing. To determine when paying players are no longer playing a given game, we analyze monthly cohorts of payers who made their first in-game payment between six and 18 months prior to the beginning of each quarter and determine whether each payer within the cohort is an active or inactive player as of the date of our analysis. To determine which payers are inactive, we analyze the dates that each payer last logged into that game. We determine a payer to be inactive once they have reached a period of inactivity for which it is probable that they 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 payers stopped playing. Based on these dates, we then project a date at which all payers 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 payer is expected to cease playing the game for each of the monthly cohorts to determine the total playing period of payers for that game. To determine the estimated average playing period of payers, we then divide this total period by two. The use of this “average” approach is supported by our observations that payers typically become inactive at a relatively consistent rate for our games. If future data indicates payers 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 payer data is available for our analysis, then we also consider other factors to determine the estimated average playing period of payers, such as the estimated average playing period of payers for other recently launched games with similar characteristics. Advertising. We have contractual relationships with advertising networks, agencies, advertising brokers and directly with advertisers to display advertisements in our games. For all advertising arrangements, we are the principal and our performance obligation is to provide the inventory for advertisements to be displayed in our games. For contracts made directly with advertisers, we are also obligated to serve the advertisements in our games. However, for those direct advertising arrangements, providing the advertising inventory and serving the advertisement is considered a single performance obligation, as the advertiser cannot benefit from the advertising space without its advertisements being displayed. The pricing and terms for all our advertising arrangements are governed by either a master contract or insertion order and generally stipulate payment terms as a specific number of days subsequent to the end of the month, generally ranging from 30 to 60 days. The transaction price in advertising arrangements is generally the product of the number of advertising units delivered (e.g., impressions, offers completed, videos viewed, etc.) and the contractually agreed upon price per advertising unit. Further, for advertising transactions not placed directly with the advertiser, the contractually agreed upon price per advertising unit is generally based on our fixed revenue rate stated in the contract. The number of advertising units delivered is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period. For a limited number of advertising network arrangements, the transaction price is determined based on a volume-tiered pricing structure, whereby the price per advertising unit in a given month is determined by the number of impressions delivered in that month. However, the uncertainty concerning the number of impressions delivered is resolved at the end of each month, therefore, eliminating any uncertainty with respect to the price per advertising unit for each reporting period. For in-game display advertisements, in-game offers, engagement advertisements and other advertisements, our performance obligation is satisfied over the life of contract (i.e., over time), with revenue being recognized as advertising units are delivered. For in-game sponsorships with branded virtual items, revenue is initially recorded to deferred revenue and then recognized ratably over the estimated life of the branded virtual item, which approximates the estimated average playing period of payers, or over the term of the advertising arrangement, depending on the nature of the agreement. 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 foreign certificates of deposit and time deposits with maturities of 90 days or less from the date of purchase. Restricted Cash Restricted cash consists of funds held in escrow in accordance with the terms of our business acquisition agreements. Short and Long-Term Investments Short and long-term debt investments consist of corporate debt securities, U.S. government and government agency debt securities and foreign certificates of deposit and time deposits For debt securities in an unrealized loss position, we first consider whether we intend to or it is more likely than not that we will be required to sell the individual security prior to recovery of its amortized cost basis and if so, we adjust the carrying value of security down to its fair value, with the amount of the write-down recorded as a realized loss within other income (expense), net. Otherwise, we determine whether a decline in fair value is attributable to a partial or full credit loss by reviewing factors such as the extent to which the fair value is less than the amortized cost basis, changes in interest rates since the purchase of the security, the financial condition of the issuer, including changes in credit ratings, the remaining payment terms of the security, as well as any adverse conditions specifically related to the security, the issuer’s industry or its geographic area. If a credit loss exists, we adjust the carrying value by recording expense within other income (expense), net equal to the amount of the credit loss, with such amount limited to the amount of the unrealized loss. Subsequent recoveries of fair value originally attributed to a credit loss are subsequently recognized as income within other income (expense), net. Finally, any unrealized loss not deemed to be attributable to a credit loss is recognized as component of other comprehensive income, net of income taxes. No credit losses related to our debt investments were recognized as a component of other income (expense), net in any of the periods presented. Short-term equity investments consist of privately held mutual funds. All equity investments are reported at fair value, with unrealized gains and losses recorded within other income (expense), net in our consolidated statement of operations. Realized gains and losses for all investments are determined using the specific-identification method and are reflected as a component of other income (expense), net in the consolidated statements of operations. Fair Value of Financial Instruments Our financial assets consist of cash, cash equivalents, short-term and long-term investments and accounts receivable, net. Cash equivalents, short-term and long-term investments are reported at fair value while accounts receivable, net are stated at the net realizable amount, which approximates fair value. Our financial liabilities consist of accounts payable and accrued liabilities, contingent consideration obligations, deferred acquisition consideration and debt. Accounts payable and accrued liabilities are stated at the invoiced or estimated payout amount, respectively, and approximate fair value. Contingent consideration obligations and deferred acquisition consideration, which are the result of business acquisitions, are reported at the estimated fair value. Our debt is recorded at the net carrying amount, which does not approximate fair value. However, the fair value of the debt is disclosed at each reporting period – refer to Note 10 – “Debt” for further discussion. 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 were valued based on quoted market prices, model driven valuations using significant inputs derived from or corroborated by observable market data or other directly and indirectly inputs observable in the marketplace. 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. Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded at the original invoiced amount less an allowance for credit losses. In evaluating our ability to collect outstanding receivable balances and related allowance for credit losses, we consider many factors, including the age of the balance, the customer’s payment history and current creditworthiness, as well as and current and forecasted economic conditions that may affect our customers’ ability to pay. Bad debts are written off after all collection efforts have been exhausted. We do not require collateral from our customers. Property and Equipment, Net Property and equipment 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 our property and equipment are as follows: Property and Equipment Useful Life Computer equipment 3 years Software 2 to 3 years Furniture and fixtures 2 years Leasehold improvements Shorter of useful life (generally up to 7 years) or remaining lease term Business Combinations In accounting for acquisitions through which a set of assets and activities are transferred to the Company, we perform an initial test to determine whether substantially all of the fair value of the gross assets transferred are concentrated in a single identifiable asset or a group of similar identifiable assets, such that the acquisition would not represent a business. If the initial test does not result in substantially all of the fair value concentrated in a single or group of similar assets, we then perform a second test to evaluate whether the assets and activities transferred include inputs and substantive processes that together, significantly contribute to the ability to create outputs, which would constitute a business. If the result of the second test indicates that the acquired assets and activities constitute a business, we account for the transaction as a business combination. For our business combinations, we allocate the purchase consideration 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 each of the estimated fair values at the acquisition date. The excess of the purchase consideration over the 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 after the acquisition date and the changes in the estimated fair value, if any, 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 during any of the years presented. 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 by comparing the estimated fair value of our single reporting unit, determined using the Company’s market capitalization as of the testing date, to its carrying value. For our annual goodwill impairment analysis performed in the fourth quarter of 2020, the result 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, 2020. Definite-Lived Intangible Assets Definite-lived intangible assets consist of 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 definite-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 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. There were no impairment charges recorded during any of the years presented . 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 Game of Thrones Slots Casino 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 Leases Lessee Arrangements We determine if an arrangement is a lease at contract inception. If there is an identified asset in the contract (either explicitly or implicitly) and we have control over its use, the contract is (or contains) a lease. In determining if there is an identified asset, we apply judgment in assessing whether the supplier has a substantive substitution right based on the supplier’s practical ability to substitute the asset and the economic benefit to do so. If it is determined that a substantive substitution right exists, the contract is not accounted for as a lease. With the respect to the servers utilized in certain of our hosting and data storage arrangements, the Company determined that a substantive substitution right existed given the location of the servers at the supplier’s premises, a lack of contractual restrictions preventing the supplier from substituting the servers throughout the period of use and the economic incentive for the supplier to substitute the servers as needed in order to efficiently handle varying levels of demand from its customers. We record right-of-use assets and current and non-current operating lease liabilities in our consolidated balance sheet for operating leases with lease terms greater than 12 months and do not to apply the balance sheet recognition requirements to leases with lease terms of 12 months or less (“short-term leases”). Additionally, we do not separate lease components from non-lease components and therefore allocate the entire consideration to the lease component(s). Right-of-use assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments. Right-of-use assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the total required fixed payments over the lease term, with the right-of-use assets further adjusted for any payments made prior to lease commencement, lease incentives received and/or initial direct costs incurred. Certain lease arrangements also include variable payments for costs such as common-area maintenance, utilities, taxes or other operating costs, which are generally based on a percentage of actual expenses incurred or a fluctuating rate which is unknown at the inception of the contract. These variable lease payments are excluded from the measurement of the right-of-use assets and lease liabilities. In determining the present value of lease payments, we discount future lease payments using our incremental borrowing rate since the implicit rate in our various leases is unknown. The incremental borrowing rate is determined at lease commencement for each individual lease and is based on a number of factors, including relevant observable debt transactions, the current economic environment, lease term and currency in which the lease is denominated. As of December 31, 2020, the weighted-average incremental borrowing rate for our operating leases was 4.2%. We recognize lease expense for operating leases and short-term leases on a straight-line basis over the lease term. Variable lease payments are recognized when the underlying uncertainty is resolved, which is generally when the obligation for those costs are incurred. Operating and variable leases expenses are presented as operating expenses in the consolidated statement of operations. Lessor Arrangements We do not separate lease components from non-lease components and therefore allocate the entire consideration in our contracts to the lease components. All of the lease and non-lease components qualify for accounting under ASC Topic 842 Leases Stock-Based Compensation Expense We recognize stock-based compensation expense for restricted stock units (“RSUs”) based on grant date fair value on a straight-line basis over the requisite service period for the entire award. For certain performance based RSUs, 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 recognize stock-based compensation expense for performance-based RSUs (“Performance RSUs”) based upon the grant date fair value on an accelerated attribution method over the requisite service period of the award. At each reporting period, the amount of stock-based compensation is determined based on the probability of achievement of pre-established thresholds or milestones for each award and if necessary, a cumulative catch-up adjustment is recorded to reflect any revised estimates regarding the probability of achievement. We recognize stock-based compensation expense for the market-based RSUs (“Market RSUs”) based upon the grand date fair value on an accelerated attribution method over the requisite service period. The estimated grant date fair value is estimated using a Monte Carlo simulation that considers the probability of achievement of pre-established thresholds for each award. The significant assumptions generally used in estimating the grant date fair value of each award include expected volatility, a risk-free interest rate ranging and an expected dividend yield. The estimated grant date fair value is not subsequently revised to consider anticipated or actual achievement of the pre-established thresholds. 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 commensurate to the stock option award’s expected life. 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 granted previously. We record stock-based compensation expense for stock options based on the grant date fair value on a straight-line basis over the requisite service period of the award. 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. If necessary, the measurement of deferred tax assets is reduced by the amount of any tax benefits that are not expected to be realized based on all available positive and negative evidence including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies and results of recent operations. In evaluating the objective evidence that the results of r |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 2. Revenue from Contracts with Customers Disaggregation of Revenue The following table presents our revenue disaggregated by platform (in millions): Year Ended December 31, 2020 2019 2018 Online game: Mobile $ 1,596.6 $ 981.2 $ 590.5 Other (1) 70.6 66.1 80.4 Online game total $ 1,667.2 $ 1,047.3 $ 670.9 Advertising and other: Mobile $ 302.5 $ 266.5 $ 225.1 Other (1) 5.1 7.9 11.2 Advertising and other total $ 307.6 $ 274.4 $ 236.3 Total revenue $ 1,974.8 $ 1,321.7 $ 907.2 (1) Includes web revenue for online game and web advertising revenue and other revenue for advertising and other. The following table presents our revenue disaggregated based on the geographic location of our payers (in millions): Year Ended December 31, 2020 2019 2018 United States $ 1,211.7 $ 826.6 $ 594.0 All other countries (1) 763.1 495.1 313.2 Total revenue $ 1,974.8 $ 1,321.7 $ 907.2 (1) No foreign country exceeded 10% of our total revenue for any periods presented. The estimated weighted average playing period of payers was ten months for the year ended December 31, 2020 and nine months for both the years ended December 31, 2019 and 2018. During the year ended December 31, 2020, we recognized $2.0 million of online game revenue and income from operations from games that have been discontinued as there is no further performance obligation and we recognized $1.6 million of online game revenue and income from operations from changes in our estimated average playing period of payers that required adjusting the recognition period of deferred revenue generated in prior periods. These changes had a cumulative $0.01 per share benefit to our reported loss per share in the year ended December 31, 2020. During the year ended December 31, 2019, there was no significant impact from discontinued games or changes in our estimated average playing period of payers that required adjusting the recognition period of deferred revenue generated in prior periods. During the year ended December 31, 2018, we recognized $0.9 million of online game revenue and income from operations from games that have been discontinued, which did not impact our reported earnings per share. Further, there were no changes in our estimated average playing period of payers that required adjusting the recognition period of deferred revenue generated in prior periods for the year ended December 31, 2018. Contract Balances We receive payments from our customers based on the payment terms established in our contracts. Payments for online game revenue are required at time of purchase, are non-refundable and relate to non-cancellable contracts that specify our performance obligations. Such payments are initially recorded to deferred revenue and are recognized into revenue as we satisfy our performance obligations. Further, payments made by our players are collected by payment processors and remitted to us generally within 45 days of invoicing. Our right to the payments collected on our behalf are unconditional and therefore recorded as accounts receivable, net of the associated payment processing fees. Payments for advertising arrangements are due based on the contractually stated payment terms. The contract terms generally require payment within 30 to 60 days subsequent to the end of the month. Our right to payment from the customer is unconditional and therefore recorded as accounts receivable. During the year ended December 31, 2020, we recognized all of the revenue that was included in the $433.0 million current deferred revenue balance as of December 31, 2019. The increase in accounts receivable, net during the year ended December 31, 2020 was primarily driven by sales on account during the period exceeding cash collections of current period and previously due amounts, which includes contribution from Peak and Rollic, which were acquired in July 2020 and October 2020, respectively. The increase in deferred revenue during the year ended December 31, 2020 was primarily driven by the sale of virtual items during the period exceeding revenue recognized from the satisfaction of our performance obligations, which includes the contribution from Peak. Unsatisfied Performance Obligations Substantially all of our unsatisfied performance obligations relate to contracts with an original expected length of one year or less. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Marketable Securities | 3. Marketable Securities Debt Securities The following tables summarize the amortized cost, gross unrealized gains and losses and fair value of our short-term and long-term debt securities as of December 31, 2020 and 2019 (in millions): December 31, 2020 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Short-term debt securities: Corporate debt securities $ 152.7 $ 0.1 $ — $ 152.8 Foreign certificates of deposit and time deposits 6.5 — — 6.5 Total $ 159.2 $ 0.1 $ — $ 159.3 Long-term debt securities: Corporate debt securities $ 2.0 $ — $ — $ 2.0 Total $ 2.0 $ — $ — $ 2.0 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Short-term debt securities: Corporate debt securities $ 814.9 $ 0.1 $ — $ 815.0 U.S. government and government agency debt securities 25.0 — — 25.0 Foreign certificates of deposit and time deposits 53.8 — — 53.8 Total $ 893.7 $ 0.1 $ — $ 893.8 Long-term debt securities: Corporate debt securities $ 108.2 $ 0.1 $ — $ 108.3 U.S. government and government agency debt securities 67.0 — — 67.0 Total $ 175.2 $ 0.1 $ — $ 175.3 As of December 31, 2020, all of our short-term debt securities have contractual maturities of one year or less and all of our long-term debt securities have contractual maturities between one and two years. Equity Securities During the year ended December 31, 2020 and December 31, 2019, we recognized gains totaling $0.3 million and $0.1 million, respectively, as a component of other income (expense), net in our consolidated statement of operations associated with our mutual fund equity investments. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The composition of our financial assets and liabilities as of December 31, 2020 and 2019 among the three levels of the fair value hierarchy are as follows (in millions): December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 611.1 $ — $ — $ 611.1 Corporate debt securities — 313.0 — 313.0 Foreign certificates of deposit and time deposits — 85.6 — 85.6 Short-term investments: Corporate debt securities — 152.8 — 152.8 Foreign certificates of deposit and time deposits — 6.5 — 6.5 Mutual funds — 49.1 — 49.1 Long-term investments: Corporate debt securities — 2.0 — 2.0 Total financial assets $ 611.1 $ 609.0 $ — $ 1,220.1 Liabilities: Contingent consideration $ — $ — $ 463.1 $ 463.1 Total financial liabilities $ — $ — $ 463.1 $ 463.1 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 0.6 $ — $ — $ 0.6 Corporate debt securities — 151.8 — 151.8 Foreign certificates of deposit and time deposits — 3.3 — 3.3 Short-term investments: Corporate debt securities — 815.0 — 815.0 U.S. government and government agency debt securities — 25.0 — 25.0 Foreign certificates of deposit and time deposits — 53.8 — 53.8 Mutual funds — 44.4 — 44.4 Long-term investments: Corporate debt securities — 108.3 — 108.3 U.S. government and government agency debt securities — 67.0 — 67.0 Total financial assets $ 0.6 $ 1,268.6 $ — $ 1,269.2 Liabilities: Contingent consideration $ — $ — $ 320.1 $ 320.1 Total financial liabilities $ — $ — $ 320.1 $ 320.1 The following table presents the activity for the year ended December 31, 2020 related to our Level 3 liabilities (in millions): Contingent Consideration Balance as of December 31, 2019 $ 320.1 Additions 47.7 Fair value adjustments 359.3 Payments (189.9 ) Gram Games contingency resolution (74.1 ) Balance as of December 31, 2020 $ 463.1 As of December 31, 2020, our contingent consideration obligations relate to the additional consideration payable in connection with our acquisitions of Gram Games in the second quarter of 2018, Small Giant in the first quarter of 2019 and Rollic in the fourth quarter of 2020. Under the terms of the Gram Games and Small Giant acquisitions, contingent consideration may be payable based on the achievement of certain future profitability metrics during each annual period following the respective acquisition date for a total of three years, with no maximum limit as to the contingent consideration achievable. Under the terms of the Rollic acquisition, contingent consideration may be payable based on the achievement of certain future bookings and profitability metrics during each annual period following the respective acquisition date for a total of three years, with no maximum limit as to the contingent consideration achievable. For all three acquisitions, we estimated the acquisition date fair value of the contingent consideration obligation using a Monte Carlo simulation. The significant unobservable inputs used in estimating these acquisition date fair value measurements were each entity’s projected performance, a risk-adjusted discount rate and performance volatility similar to industry peers. With respect to the remaining Gram Games contingent consideration obligation, the Company executed an amendment to the Share Purchase Agreement with the former owners of Gram Games in October 2020 to set the final contingent consideration payment at $75.0 million (the “Gram Games Amendment”), to be paid in third quarter of 2021. At the date of the Gram Games Amendment, the Company measured the remaining final obligation by calculating the present value of the final payment using a discount rate of 2.1%, commensurate with the remaining term. Subsequently, the Company accretes the obligation up to its final amount using the effective interest method. The estimated value of the Gram Games contingent consideration obligation decreased from $78.1 million as of December 31, 2019 to $74.1 million as of December 31, 2020, primarily due to the $68.3 million payment to the former owners of Gram Games for its performance during the second contingent consideration period, partially offset by an increase in the estimated payout as a result of the Gram Games Amendment. For the years ended December 31, 2020, 2019 and 2018, we recognized $64.3 million, $57.6 million and $5.5 million, respectively, of expense within research and development expenses in our consolidated statement of operations related to the Gram Games contingent consideration. With the respect to the remaining Small Giant and Rollic contingent consideration obligation, we estimate the fair value at each subsequent reporting period using a Monte Carlo simulation. The table below outlines the significant unobservable inputs used in estimating the fair value of the remaining Small Giant and Rollic contingent consideration liabilities as of December 31, 2020, weighted by the relative fair value of each annual period’s obligation to the total obligation. December 31, 2020 Range Weighted Average Bookings growth rates 5.3% - 54.7% 11.2% Bookings volatility 27.0% - 54.0% 33.3% Asset volatility 40.0% - 60.0% 44.6% Net cash flow margins 24.6% - 45.6% 41.4% Discount rates 10.0% - 30.0% 14.6% Changes in the projected performance of the acquired businesses could result in a higher or lower contingent consideration obligation in the future. The estimated fair value of the Small Giant contingent consideration obligation increased from $242.0 million as of December 31, 2019 to $409.3 million as of December 31, 2020. The increase was driven by stronger than expected performance and the increased probability of achievement during the remaining performance periods, partially offset by a $121.6 million payment to the former owners of Small Giant for its performance during the first contingent consideration period. For the years ended December 31, 2020 and 2019, we recognized $288.9 million and $144.0 million, respectively, of expense within research and development expenses in our consolidated statement of operations. The estimated fair value of the Rollic contingent consideration obligation increased from $47.7 million at the acquisition date to $53.8 million as of December 31, 2020. The increase was driven by stronger than expected performance and the increased probability of achievement during the remaining performance periods. For the year ended December 31, 2020, we recognized $6.1 million of expense within research and development expenses in our consolidated statement of operations. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 5. Property and Equipment, Net On July 1, 2019, the Company sold its San Francisco headquarters (the “Building”) and related land, including all preexisting leases between the Company and third-party tenants of the Building, to a third-party buyer for net proceeds of approximately $580.5 million (the “Building Sale”). In connection with the Building Sale, the Company de-recognized the related land, building and building improvements and all lessor related assets and liabilities, which resulted in a net gain of $314.2 million within other income (expense), net in our consolidated statement of operations. Property and equipment, net consist of the following (in millions): December 31, December 31, 2020 2019 Computer equipment $ 30.4 $ 25.0 Software 35.1 33.9 Furniture and fixtures 10.6 11.6 Leasehold improvements 30.8 20.0 Total property and equipment, gross $ 106.9 $ 90.5 Less: Accumulated depreciation (67.6 ) (64.7 ) Total property and equipment, net $ 39.3 $ 25.8 The following represents our property and equipment, net by location (in millions): December 31, December 31, 2020 2019 United States $ 23.4 $ 16.1 Turkey 7.7 0.7 India 4.3 5.3 United Kingdom 3.0 3.2 All other countries 0.9 0.5 Total property and equipment, net $ 39.3 $ 25.8 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 6. Leases Lessee Arrangements In connection with the Building Sale, the Company executed a leaseback of approximately 185,000 square feet of the Building over a 12-year term, where we expect to continue operating our headquarters. The agreement provides the Company two separate options to extend the lease for eight years each and a third option to extend the lease for six years (for a total of an additional 22 years). At lease inception, the Company determined it was not reasonably certain to exercise any of the options to extend. The net initial base rent was approximately $10.7 million for the first year of the lease and may increase by an annual amount not to exceed 3.25% per year. Our remaining operating leases are also primarily for office facilities. Certain leases include options to extend the lease for a set number of years or early terminate the lease prior to the contractually defined expiration date. We include such extension periods in the lease term only when it is reasonably certain that they will be exercised and include such periods beyond the early termination date when it is reasonably certain the early terminations will not be exercised. As of December 31, 2020, the weighted-average remaining lease term for all of our operating leases was 8.9 years. The components of lease expense were as follows (in millions): Year Ended December 31, 2020 2019 Operating lease expense $ 22.1 $ 15.1 Variable lease expense 7.9 4.6 Total lease expense (1) $ 30.0 $ 19.7 (1) The expense associated with short-term leases with a lease term greater than one month was not material for the years ended December 31, 2020 and 2019. For the year ended December 31, 2020 and 2019, supplemental cash and noncash information related to operating leases, excluding any transition adjustments, was as follows (in millions): Year Ended December 31, 2020 2019 Fixed operating lease payments $ 22.9 $ 16.7 Right-of-use assets obtained in exchange for operating lease liabilities (noncash) 11.5 138.9 As of December 31, 2020, future lease payments related to our operating leases were as follows (in millions): Year ending December 31: Operating Leases 2021 $ 24.0 2022 20.3 2023 18.9 2024 16.4 2025 13.0 Thereafter 77.9 Total lease payments 170.5 Less: Imputed interest (30.0 ) Total lease liability balance $ 140.5 We do not have any leases that have not yet commenced that create significant rights and obligations as of December 31, 2020. During the third quarter of 2018, we executed an assignment of our Oxford office lease associated with our fourth quarter 2017 restructuring plan. The original lease term ends in November 2022. All terms under the original lease were assigned in full to the assignee, with the assignee becoming primarily liable to make rental payments directly to the landlord. Further, the assignee was required to provide the landlord a security deposit equal to twelve months rent to be used by the landlord in the event of the assignee’s non-performance. In connection with the assignment, the Company became secondarily liable in the event the assignee is unable to perform under the lease. Based on the estimated current rent and related payments, the maximum exposure to the Company is estimated to be $1.2 million as of December 31, 2020. However, the lease is subject to periodic rate reviews which allow the landlord to make market adjustments to the rent and other related payments and accordingly, the maximum exposure may be greater than this amount. As of December 31, 2020, the estimated fair value of this guarantee is not material. Lessor Arrangements Prior to July 1, 2019, the Company owned the building where its San Francisco headquarters is located and had operating lease arrangements with various third-party tenants for the remaining available office space. However, in connection with the sale and leaseback of the building, effective July 1, 2019, the Company sold all preexisting leases between the Company and its tenants to the buyer. As a result, all lessor related assets and liabilities were de-recognized upon closing. For the years ended December 31, 2019, the components of lease income were as follows, all of which was recognized prior to the Building Sale and was recorded within other income (expense), net in our consolidated statement of operations (in millions): Year Ended December 31, 2019 Operating lease income $ 10.6 Variable lease income 1.1 Total lease income $ 11.7 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 7. Acquisitions Rollic Acquisition On October 1, 2020, we acquired 80% of all issued and outstanding share capital of Rollic, a Turkey joint stock company, to expand our live services portfolio and new game pipeline, for total purchase consideration of $228.2 million. The remaining 20% will be acquired ratably for potential additional consideration payable annually based upon the achievement of specified bookings and profitability metrics by Rollic during each of the three years following the acquisition date. The equity rights and privileges of the remaining Rollic shareholders lack the traditional rights and privileges associated with equity ownership and accordingly, the transaction was accounted for as if the Company acquired 100% of Rollic on the acquisition date. Any future payments associated with our required acquisition of the remaining 20% represent a contingent consideration obligation. The total purchase consideration included $164.5 million in cash, $16.0 million of cash that was deposited into an escrow account for a period of 18 months as security for general representations and warranties (the “Escrow Consideration”) and contingent consideration valued at of $47.7 million at the acquisition date. The Company records changes in the fair value of the contingent consideration within our consolidated statement of operations in each subsequent reporting period after the acquisition date as they occur (see Note 4 – “Fair Value Measurements” for further discussion on this estimate). Any future contingent consideration payments will be made in at least 50% in cash and the remainder, at the Company’s discretion, in cash and/or unregistered shares of Zynga’s Class A common stock (the “Zynga Stock”) based on the volume-weighted average closing price of the Zynga Stock during a 30 consecutive trading day period in advance of each payment. In connection with the transaction, the Company also executed noncompetition agreements with certain members of Rollic’s management for terms ranging from two to four years following the acquisition date. However, the acquisition date estimated fair value of the noncompetition agreements was not material. The following table summarizes the acquisition date fair value of the assets, including intangible assets, liabilities assumed and related goodwill acquired from Rollic (in millions): Estimated Purchase Price Allocation Cash $ 13.5 Accounts receivable 15.7 Prepaid expenses 2.5 Other current assets 1.9 Intangible assets: Developed technology, weighted average useful life of 6 years 38.5 Third-party developer relationships, useful life of 4 years 42.0 Trade name, useful life of 7 years 22.0 Goodwill 131.5 Property and equipment 0.3 Right-of-use assets 0.1 Total assets acquired 268.0 Accounts payable (9.1 ) Income taxes payable (1.9 ) Operating lease liabilities (0.1 ) Other current liabilities (7.9 ) Deferred tax liabilities, net (20.8 ) Total liabilities (39.8 ) Total purchase price consideration $ 228.2 Non-current contingent consideration payable (47.7 ) Total cash consideration, including cash held in escrow $ 180.5 Certain amounts noted above are preliminary and subject to change during the respective measurement period (up to one year from the acquisition date) as we obtain additional information for the preliminary fair value estimates of the assets acquired and liabilities assumed. The primary preliminary estimates that are not yet finalized relate to certain assets and liabilities assumed, identifiable intangible assets, income and non-income based taxes and residual goodwill. The fair value of the acquired intangible assets were determined using risk-adjusted, discounted cash flow models. The weighted-average amortization period of the acquired intangible assets was 5.6 years at acquisition. Goodwill, which is non-deductible for tax purposes, represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is primarily attributable to the assembled workforce of the acquired business and expected synergies at the time of the acquisition. The results of operations from Rollic have been included in our consolidated statement of operations since the date of acquisition. Pro forma results of operations have not been presented as they are not material to our consolidated statements of operations for the year ended December 31, 2020. Peak Acquisition On July 1, 2020 (the “Peak Closing Date”), we acquired 100% of all issued and outstanding share capital of Peak, a Turkey joint stock company, to expand our live services portfolio and new game pipeline, for total purchase consideration of $2.1 billion. The total purchase consideration included $802.3 million in cash, $120.0 million of cash that was deposited into an escrow account for a period of 18 months as security for general representations and warranties (the “Escrow Consideration”) and 116,564,861 shares of Zynga Class A common stock valued at $1.1 billion at the acquisition date. Additionally, the total purchase consideration includes the acquisition date fair value of $30.9 million of cash that was retained by the Company for a period of 66 months following the Peak Closing Date as security for tax-related indemnification obligations from the prior owners of Peak (the “Deferred Consideration”). The present value of the Deferred Consideration was estimated at $23.8 million on the acquisition date. In connection with the transaction, the Company also executed noncompetition agreements with certain members of Peak’s management for a term of five years following the acquisition date. However, the acquisition date estimated fair value of the noncompetition agreements was not material. The following table summarizes the acquisition date fair value of the assets, including intangible assets, liabilities assumed and related goodwill acquired from Peak (in millions): Estimated Purchase Price Allocation Cash $ 10.8 Accounts receivable 64.3 Prepaid expenses 1.7 Other current assets 12.6 Intangible assets: Developed technology, useful life of 5 years 495.0 Trade names, useful life of 7 years 115.0 Domain names, weighted average useful life of 14 years 4.6 Goodwill 1,513.7 Property and equipment 6.8 Right-of-use assets 9.7 Other non-current assets 0.5 Total assets acquired 2,234.7 Accounts payable (14.2 ) Operating lease liabilities (2.2 ) Other current liabilities (16.7 ) Deferred tax liabilities, net (108.4 ) Non-current operating lease liabilities (7.5 ) Other non-current liabilities (1.9 ) Total liabilities (150.9 ) Total purchase price consideration $ 2,083.8 Fair value of Zynga Stock Consideration issued (1) (1,137.7 ) Total cash consideration, including cash held in escrow (2) $ 946.1 (1) The fair value of the Zynga Stock Consideration (2) The amount shown represents the cash paid at closing (which includes the Escrow Consideration) as well as present value of the Deferred Consideration, which was estimated as $23.8 million at the acquisition date using a discount rate commensurate with the term of the Deferred Consideration of 4.9%. Certain amounts noted above are preliminary and subject to change during the respective measurement period (up to one year from the acquisition date) as we obtain additional information for the preliminary fair value estimates of the assets acquired and liabilities assumed. The primary preliminary estimates that are not yet finalized relate to certain assets and liabilities assumed, identifiable intangible assets, income and non-income based taxes and residual goodwill. The fair value of the acquired intangible assets were determined using risk-adjusted, discounted cash flow models. The weighted-average amortization period of the acquired intangible assets was 5.4 years at acquisition. Goodwill, which is non-deductible for tax purposes, represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is primarily attributable to the assembled workforce of the acquired business and expected synergies at the time of the acquisition. The results of operations from Peak have been included in our consolidated statement of operations since the date of acquisition. During the year ended December 31, 2020, Peak represented $110.7 million of our total revenue and $176.4 million of our consolidated net loss. Transaction costs incurred by the Company in connection with the Peak acquisition, including stamp taxes and professional fees, were $7.1 million for the year ended December 31, 2020 and were recorded within general and administrative expenses in our consolidated statements of operations. The following table summarizes the unaudited pro forma consolidated information of the Company assuming the acquisition of Peak had occurred as of January 1, 2019. The unaudited pro forma information for all periods presented includes the business combination accounting effects resulting from the acquisition, including alignment of the timing of Peak’s revenue recognition with the Company’s accounting policy to recognize mobile online game revenues over the estimated average playing period of payers, amortization for intangible assets acquired, depreciation expense for property and equipment assets acquired and recognition of tax benefits primarily related to the amortization of the intangible asset deferred tax liability. The unaudited pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of 2019 (in millions, except per share data). Year Ended December 31, 2020 2019 Total revenue $ 2,506.0 $ 1,706.7 Net income (loss) (270.3 ) (178.4 ) Basic and diluted net income (loss) per share (0.27 ) (0.17 ) The significant nonrecurring adjustments reflected in the pro forma consolidated information above include the reclassification of the transactions costs and the related income tax impacts incurred after the acquisition to the earliest period presented. Small Giant Acquisition On January 2, 2019, we acquired 80% of all issued and outstanding share capital (including all rights to acquire share capital) of Small Giant, a Finnish Company, to expand our live service portfolio and new game pipeline, for total purchase consideration of $717.9 million. The remaining 20% is being acquired ratably for potential additional cash consideration payable annually based upon the achievement of specified profitability metrics by Small Giant during each of the three years following the acquisition date. The equity rights and privileges of the remaining Small Giant shareholders lack the traditional rights and privileges associated with equity ownership and accordingly, the transaction was accounted for as if the Company acquired 100% of Small Giant on the acquisition date. Any future payments associated with Zynga’s required acquisition of the remaining 20% represent a contingent consideration obligation. The total purchase consideration included $336.0 million in cash, $30.0 million of cash that was deposited into an escrow account for a period of 18 months as security for general representations and warranties, 63,794,746 shares of our Class A common stock valued at $253.9 million at the acquisition date and contingent consideration of $98.0 million at the acquisition date. The Company records changes in the fair value of the contingent consideration within our consolidated statement of operations in each subsequent reporting period after the acquisition date as they occur (see Note 4 – “Fair Value Measurements” for further discussion on this estimate). Additionally, in connection with the transaction, the Company executed noncompetition agreements with the management of Small Giant for a term of three years following the acquisition date. However, the acquisition date estimated fair value of the noncompetition agreements was not material. The following table summarizes the acquisition date fair value of the tangible assets, intangible assets, assumed liabilities, contingent consideration payable and related goodwill acquired from Small Giant (in millions): Estimated Purchase Price Allocation Cash $ 34.2 Accounts receivable 23.0 Prepaid expenses 2.5 Intangible assets: Developed technology, useful life of 5 years 155.0 Trade names, useful life of 7 years 32.0 Goodwill 531.2 Property and equipment 0.2 Right-of-use assets 0.9 Other non-current assets 0.1 Total assets acquired 779.1 Accounts payable (1.7 ) Income tax payable (5.6 ) Operating lease liabilities (0.4 ) Other current liabilities (15.6 ) Deferred tax liabilities, net (37.4 ) Non-current operating lease liabilities (0.5 ) Total liabilities (61.2 ) Total purchase consideration $ 717.9 Fair value of Zynga Stock Consideration (1) (253.9 ) Non-current contingent consideration payable (98.0 ) Total cash consideration, including cash held in escrow $ 366.0 (1) The fair value of the Zynga Stock Consideration above is estimated based on the total shares issued of 63,794,746 and the closing stock price of Zynga’s Common A stock on January 2, 2019 of $3.98 per share. The fair value of the identified intangible assets were determined using risk-adjusted, discounted cash flow models. Goodwill, which is non-deductible for tax purposes, represents the excess of the purchase consideration over the fair value of the net tangible and intangible assets acquired and is primarily attributable to the assembled workforce of the acquired business and expected synergies at the time of the acquisition. The weighted-average amortization period of the acquired intangible assets was 5.3 years at acquisition. The results of operations from Small Giant have been included in our consolidated statement of operations since the date of acquisition. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | 8. Goodwill and Intangible Assets, Net The following table presents the changes to goodwill from December 31, 2018 to December 31, 2020 (in millions): Goodwill Balance as of December 31, 2018 (1) $ 934.2 Additions 531.2 Foreign currency translation adjustments (2) (4.5 ) Balance as of December 31, 2019 (1) $ 1,460.9 Additions 1,645.2 Foreign currency translation adjustments (2) 54.7 Balance as of December 31, 2020 (1) $ 3,160.8 (1) There are no accumulated impairment losses at the beginning or end of any period presented. (2) The change is primarily related to translation adjustments on goodwill associated with the acquisitions of Small Giant and NaturalMotion, which have functional currencies denominated in the Euro and the British Pound, respectively. The details of our acquisition-related intangible assets as of December 31, 2020 and 2019 are as follows (in millions): December 31, 2020 Gross Carrying Accumulated Net Book Value Amortization Value Developed technology $ 972.2 $ (346.5 ) $ 625.7 Trademarks, branding and domain names 208.5 (35.5 ) 173.0 Third-party developer relationships 42.0 (2.6 ) 39.4 Noncompetition agreements 8.4 (8.4 ) — Total $ 1,231.1 $ (393.0 ) $ 838.1 December 31, 2019 Gross Carrying Accumulated Net Book Value Amortization Value Developed technology $ 415.5 $ (228.0 ) $ 187.5 Trademarks, branding and domain names 63.8 (18.6 ) 45.2 Noncompetition agreements 8.4 (8.1 ) 0.3 Total $ 487.7 $ (254.7 ) $ 233.0 Our trademarks, branding and domain names intangible assets include $6.1 million of indefinite-lived intangible assets as of December 31, 2020 and December 31, 2019. The remaining assets were, and continue to be, amortized on a straight-line basis. Amortization expense related to other intangible assets for the year ended December 31, 2020, 2019 and 2018 was $130.0 million, $67.0 million and $29.0 million, respectively. As of December 31, 2020, the weighted-average remaining useful lives of our acquired intangible assets are 4.2 years for developed technology, 6.4 years for trademarks, branding, and domain names, 3.8 years for third-party developer relationships and 4.6 years for all acquired intangible assets. As of December 31, 2020, future amortization expense related to our intangible assets is expected to be recognized as follows (in millions): Year ending December 31: 2021 $ 201.6 2022 191.8 2023 178.2 2024 138.9 2025 80.0 Thereafter 41.5 Total $ 832.0 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes In the third quarter of 2020, we completed an intra-entity transfer of certain intellectual property rights back to the U.S. in order to better align their ownership with how our business currently and is expected to operate. The transaction did not result in additional income tax expense or benefit during the year ended December 31, 2020. However, as a result of the transaction, we recognized a deferred tax asset of $26.1 million, that was equally offset by a valuation allowance. On June 7, 2019, the U.S. Court of Appeals for the Ninth Circuit (“Ninth Circuit”) issued an opinion in Altera Corp v. Commissioner (the “Altera matter”), reversing a prior 2015 U.S. Tax Court decision. Specifically, the Ninth Circuit ruled in favor of the Commissioner, validating U.S. Treasury regulations that require parties to a qualified cost-sharing arrangement to include stock-based compensation in the cost pool. On June 22, 2020, the U.S. Supreme Court denied hearing a petition to review the Ninth Circuit’s ruling. The Company is not a named party in the Altera matter, but as a result of the ruling, Zynga’s prior tax position of not including stock-based compensation expenses in its cost share with its affiliates was revised. This resulted in the recognition of a one-time current federal and state tax expense totaling $ 9.4 million, which was recognized as a provision for income taxes during the year ended December 31, 2020. The full tax liability associated with the Altera matter was partially offset by the use of deferred tax credit carryforward assets, which equally reduced the Company’s valuation allowance against its deferred tax assets. Income (loss) before income taxes consists of the following for the periods shown below (in millions): Year Ended December 31, 2020 2019 2018 United States $ (443.5 ) $ 155.9 $ 30.0 International 38.1 (108.6 ) (3.5 ) Total $ (405.4 ) $ 47.3 $ 26.5 The provision for (benefit from) income taxes consists of the following for the periods shown below (in millions): Year Ended December 31, 2020 2019 2018 Current tax expense (benefit): Federal $ 9.0 $ 11.6 $ 3.9 State 2.5 5.4 0.2 Foreign 52.2 7.7 12.0 Total current tax expense (benefit) $ 63.7 $ 24.7 $ 16.1 Deferred tax expense (benefit): Federal $ 4.5 $ 0.1 $ 1.4 State 2.3 0.5 0.4 Foreign (46.5 ) (19.9 ) (6.9 ) Total deferred tax expense (benefit) $ (39.7 ) $ (19.3 ) $ (5.1 ) Provision for (benefit from) income taxes $ 24.0 $ 5.4 $ 11.0 The reconciliation of federal statutory income tax provision (benefit) to our effective income tax provision is as follows (in millions): Year Ended December 31, 2020 2019 2018 Expected provision for (benefit from) income taxes at U.S. federal statutory rate (1) $ (85.1 ) $ 9.9 $ 5.6 Contingent consideration 75.4 42.3 1.2 Change in valuation allowance 20.7 (56.2 ) (5.6 ) Tax reserve for uncertain tax positions 8.7 3.2 1.7 Officer's compensation limitation 8.5 5.2 2.3 State income taxes, net of federal benefit 4.7 4.7 0.2 Acquisition costs 2.1 1.2 0.5 Base Erosion and Anti-Abuse Tax obligation 1.8 — 3.9 Stock-based compensation (11.0 ) (15.7 ) (3.5 ) Income (loss) taxed at foreign rates (0.6 ) 10.3 4.4 Other (1.2 ) 0.5 0.3 Actual provision for (benefit from) income taxes $ 24.0 $ 5.4 $ 11.0 (1) For the purpose of the reconciliation above, the U.S. federal statutory rate was 21% for all years presented. We have not provided U.S. income taxes or foreign withholding taxes on the undistributed earnings of our profitable foreign subsidiaries as of December 31, 2020 because we intend to permanently reinvest such earnings in foreign operations. If these foreign earnings were to be repatriated in the future, the related U.S. tax liability may be reduced by any foreign income taxes previously paid on these earnings. As of December 31, 2020 and 2019, the cumulative amount of earnings upon which income taxes have not been provided is approximately $139.1 million and $87.1 million, respectively. 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 millions): December 31, December 31, 2020 2019 Deferred tax assets: Tax credit carryforwards $ 92.8 $ 76.4 Net operating loss carryforwards 46.2 35.5 Deferred revenue 42.9 — Acquired intangible assets 40.7 30.0 Operating lease liabilities 33.9 34.4 Accrued expenses 20.3 4.9 Stock-based compensation 14.6 9.2 Other accrued compensation 7.8 7.3 State taxes 1.6 1.5 Charitable contributions 0.8 0.1 Other 4.4 0.1 Total deferred tax assets $ 306.0 $ 199.4 Less: Valuation allowance (187.8 ) (141.6 ) Deferred tax assets, net of valuation allowance $ 118.2 $ 57.8 Deferred tax liabilities: Acquired intangible assets $ (160.2 ) $ (37.6 ) Convertible debt (33.4 ) (9.6 ) Right-of-use assets (32.9 ) (34.0 ) Goodwill (13.9 ) (7.1 ) Other (2.7 ) (2.3 ) Total deferred tax liabilities $ (243.1 ) $ (90.6 ) Net deferred taxes $ (124.9 ) $ (32.8 ) 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, 2020. The increase in the valuation allowance during the year ended December 31, 2020 is primarily related to U.S. federal and state net operating losses generated. Net operating loss and tax credit carryforwards as of December 31, 2020 are as follows (in millions): Amount Expiration Years Net operating losses, federal $ 104.9 2027 - indefinite Net operating losses, state 21.6 2021 - 2040 Tax credits, federal 83.0 2031 - 2040 Tax credits, state 100.4 2026 - indefinite The federal and state net operating loss carryforwards and tax credits are subject to various annual limitations under Section 382 and 383, respectively, of the Internal Revenue Code and similar state provisions. The following table reflects changes in the gross unrecognized tax benefits (in millions): Gross Unrecognized Tax Benefits Balance as of December 31, 2017 $ 160.0 Additions based on tax positions related to 2018 4.4 Additions for tax positions of prior years 0.8 Decreases related to expiration of prior year tax positions (1.2 ) Balance as of December 31, 2018 $ 164.0 Additions based on tax positions related to 2019 5.8 Additions for tax positions of prior years 1.9 Decreases related to expiration of prior year tax positions (0.3 ) Balance as of December 31, 2019 $ 171.4 Additions based on tax positions related to 2020 4.8 Subtractions for tax positions of prior years (28.0 ) Decreases related to expiration of prior year tax positions (1.8 ) Balance as of December 31, 2020 $ 146.4 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, 2020, $123.0 million of our gross unrecognized tax benefits were recorded as a reduction of the related deferred tax assets and the remaining $23.4 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 $146.4 million as of December 31, 2020 was realized, this would have resulted in a tax benefit of $23.4 million within our provision for income taxes at such time. If the balance of gross unrecognized tax benefits of $171.4 million as of December 31, 2019 was realized, this would have resulted in a tax benefit of $14.8 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 2020, 2019 and 2018, was $0.3 million, $0.2 million and $0.2 million, respectively, and the amount of interest and penalties accrued as of December 31, 2020 and 2019 was $1.4 million and $1.1 million, respectively. We file income tax returns in the U.S. federal jurisdiction, many U.S. state jurisdictions and certain foreign jurisdictions. The jurisdictions in which we are subject to potential examination include Canada, Finland, India, Ireland, Turkey, the U.S. and the United Kingdom. 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. The timing of the resolution, settlement and closure of any income tax audits is highly uncertain, and we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. It is possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt Convertible Senior Notes On December 17, 2020, we issued $874.5 million aggregate principal amount of 0% Convertible Senior Notes due 2026 (the “2026 Notes”) including the initial purchasers’ full exercise of their option to purchase an additional $112.5 million principal amount of the 2026 Notes, in a private placement to qualified institutional buyers in an offering exempt from registration under the Securities Act of 1933. The net proceeds from the issuance of the 2026 Notes was $856.8 million after deducting transaction costs. On June 14, 2019, we issued $690.0 million aggregate principal amount of 0.25% Convertible Senior Notes due 2024 (the “2024 Notes”), including the initial purchasers’ full exercise of their option to purchase an additional $90.0 million principal amount of the 2024 Notes, in a private placement to qualified institutional buyers in an offering exempt from registration under the Securities Act of 1933. The net proceeds from the issuance of the 2024 Notes was $672.2 million after deducting transaction costs. The 2026 Notes and 2024 Notes are each governed by an indenture between us, as the issuer, and Wells Fargo Bank, National Association, as trustee. The 2026 Notes and 2024 Notes are senior unsecured obligations and rank senior in right of payment to all of our indebtedness that is expressly subordinated in right of payment to such notes; equal in right of payment to all of our existing and future liabilities that are not so subordinated; effectively junior to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities of our current or future subsidiaries (including trade payables). The indentures governing the 2026 Notes and 2024 Notes, as applicable, do not contain any financial covenants. The 2026 Notes and 2024 Notes mature on December 15, 2026 and June 1, 2024, respectively, unless earlier converted, redeemed or repurchased in accordance with their terms respectively prior to the maturity date. The 2026 Notes do not bear regular interest, and the principal amount does not accrete, while interest is payable semiannually on the 2024 Notes in arrears on June 1 and December 1 of each year. The 2026 Notes have an initial conversion rate of 76.5404 shares of our Class A common stock per $1,000 principal amount of 2026 Notes, which is equal to an initial conversion price of approximately $13.07 per share of our Class A common, subject to adjustment if certain events occur. The 2024 Notes have an initial conversion rate of 120.3695 shares of our Class A common stock per $1,000 principal amount of 2024 Notes, which is equal to an initial conversion price of approximately $8.31 per share of our Class A common stock, subject to adjustment if certain events occur. Following certain corporate events that occur prior to the maturity date or following our issuance of a notice of redemption, we will increase the conversion rate for a holder who elects to convert its 2026 Notes or 2024 Notes in connection with such corporate event or during the related redemption period in certain circumstances. Additionally, upon the occurrence of a corporate event that constitutes a “fundamental change” per the indentures, holders of the 2026 Notes and 2024 Notes may require us to repurchase for cash all or a portion of their respective 2026 Notes or 2024 Notes at a purchase price equal to 100% of the principal amount of the 2026 Notes and 2024 Notes plus accrued and unpaid interest. Prior to the close of business on the business day immediately preceding September 15, 2026 with respect to the 2026 Notes and March 1, 2024 with respect to the 2024 Notes, the 2026 Notes and 2024 Notes will be convertible only under the following circumstances: • during any calendar quarter, if the last reported sale price of our Class A common stock for at least 20 trading days in a period of 30 consecutive trading days ending on the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price of the applicable series of the 2026 Notes or 2024 Notes on each applicable trading day; • during the five business-day period after any five consecutive trading-day period in which the trading price per $1,000 principal amount of each applicable series of the 2026 or 2024 Notes for such trading day was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate of each applicable series of the 2026 Notes or 2024 Notes on each such trading day; • if we call the 2026 Notes or 2024 Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or • upon the occurrence of specified corporate events described in the respective indentures. On or after the dates specified above, holders of the 2026 Notes and 2024 Notes may convert all or any portion of their 2026 Notes and 2024 Notes regardless of the foregoing conditions. Upon any conversion, holders will receive cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock, at our election. The Company may not redeem the 2026 Notes and 2024 Notes prior to December 20, 2023 and June 5, 2022, respectively. On or after those respective dates, the Company may redeem for cash all or any portion of the applicable series of the 2026 Notes or 2024 Notes, at its option, if the last reported sale price of our Class A common stock has been at least 130% of the conversion price of the applicable series of the 2026 Notes or 2024 Notes for at least 20 trading days during any 30 consecutive trading-day period ending on and including the trading day immediately preceding date when the Company provides a notice of redemption at a redemption price equal to 100% of the principal amount of the applicable series of the 2026 Notes or 2024 Notes to be redeemed, plus any accrued and unpaid interest or special interest, as applicable. As of December 31, 2020, the conditions allowing holders of the 2026 Notes or 2024 Notes to convert their respective series of the 2026 Notes and 2024 Notes have not been met and therefore both the 2026 Notes and 2024 Notes are not yet convertible. We separately accounted for the liability and equity components of the 2026 Notes and 2024 Notes. We determined the initial carrying amount of the $707.4 million liability component of the 2026 Notes by calculating the present value of the cash flows using an effective interest rate of 3.5%. We determined the initial carrying amount of the $572.0 million liability component of the 2024 Notes by calculating the present value of the cash flows using an effective interest rate of 4.1 %. The effective interest rate s w ere determined based on non-convertible debt offerings , of similar sizes and terms , by companies with similar credit ratings and other observable market data (Level 2 inputs). The amount of the equity component, representing the conversion option, was $167.1 million for the 2026 Notes and $118.0 million for the 2024 Notes and was calculated by deducting the initial carrying value of the liability component from the principal amount of the 2026 Notes and 2024 Notes, respectively. This difference represents a debt discount that is amortized to interest expense over the 6-year and 5-year contractual periods of the 2026 Notes and 2024 Notes, respectively, using the effective interest rate method. The equity components are not subsequently remeasured as long as they continue to meet the conditions for equity classification. We allocated transaction costs related to the issuance of the respective series of the 2026 Notes and 2024 Notes to the liability and equity components using the same proportions as the initial carrying value of the respective series of the 2026 Notes and 2024 Notes. The respective transaction costs are then amortized to interest expense using the effective interest method over the terms of the respective series of 2026 Notes and 2024 Notes. Transaction costs initially attributable to the liability component of the 2026 Notes and 2024 Notes were $14.3 million and $14.8 million, respectively, while transaction costs attributable to the equity component of the 2026 Notes and 2024 Notes were $3.4 million and $3.1 million, respectively. The transaction costs attributable to the equity component are accounted for consistently with the equity component of the 2026 Notes and 2024 Notes. The net carrying amount of the liability and equity components of the 2026 Notes and 2024 Notes as of December 31, 2020 were as follows (in millions): 2024 Notes 2026 Notes Total Liability component: Principal $ 690.0 $ 874.5 $ 1,564.5 Unamortized debt discount (83.8 ) (166.1 ) (249.9 ) Unamortized transaction costs (10.5 ) (14.2 ) (24.7 ) Net carrying amount $ 595.7 $ 694.2 $ 1,289.9 Equity component, net of transaction costs $ 114.9 $ 163.7 $ 278.7 The net carrying amount of the liability and equity components of the 2024 Notes as of December 31, 2019 were as follows (in millions): 2024 Notes Liability component: Principal $ 690.0 Unamortized debt discount (106.2 ) Unamortized transaction costs (13.3 ) Net carrying amount $ 570.5 Equity component, net of transaction costs $ 114.9 Interest expense recognized related to the 2026 Notes and 2024 Notes was as follows (in millions): Year Ended December 31, 2020 2019 Contractual interest expense $ 1.7 $ 0.9 Amortization of debt discount 23.5 11.8 Amortization of transaction costs 2.9 1.5 Total $ 28.1 $ 14.2 Based on the closing price of our Class A common stock of $9.87 on December 31, 2020, the if-converted value of the 2024 Notes of $819.8 million exceeded the principal amount of the Notes by $129.8 million. As of December 31, 2020, the estimated fair value of the 2026 Notes and 2024 Notes was $914.0 million and $916.7 million, respectively. We estimated the fair value based on the quoted market prices in an inactive market on the last trading day of the reporting period, which are considered Level 2 inputs. Capped Call Transactions In connection with the offering of the 2026 Notes and 2024 Notes, the Company entered into privately negotiated capped call options with certain counterparties (the “2026 Capped Calls” and “2024 Capped Calls”, respectively). The 2026 Capped Calls have an initial strike price of approximately $13.07 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2026 Notes and an initial cap price of $17.42 per share, subject to certain adjustments. The 2026 Capped Calls are intended to reduce the potential economic dilution of approximately 66.9 million shares to our Class A common stock upon any conversion of the 2026 Notes and/or offset any cash payments we make in excess of the principal amount of converted notes with such reduction and/or offset, as the case may be, subject to a maximum based on the cap price. The cost of $63.0 million incurred in connection with the 2026 Capped Calls was recorded as a reduction to additional paid-in capital. The 2024 Capped Calls have an initial strike price of approximately $8.31 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2024 Notes and an initial cap price of $12.54 per share, subject to certain adjustments. The 2024 Capped Calls are intended to reduce the potential economic dilution of approximately 83.1 million shares to our Class A common stock upon any conversion of the 2024 Notes and/or offset any cash payments we make in excess of the principal amount of converted notes with such reduction and/or offset, as the case may be, subject to a cap based on the cap price. The cost of $73.8 million incurred in connection with the 2024 Capped Calls was recorded as a reduction to additional paid-in capital. As both the 2026 Capped Calls and 2024 Capped Calls are considered indexed to our own stock and are equity classified, they are recorded in stockholders’ equity and are not accounted for as derivatives. Convertible Senior Notes and Capped Call Transactions – Impact on Earnings per Share The 66.9 million shares initially underlying the conversion option of the 2026 Notes and the 83.1 million shares initially underlying the conversion option of the 2024 Notes will not have an impact on our diluted earnings per share until the Company has a period of net income and the average market price of our Class A common stock exceeds the respective conversion price of the 2026 Notes and 2024 Notes, as we intend and have the ability to settle the principal amount of the 2026 Notes and 2024 Notes in cash upon conversion. The Company computes the potentially dilutive impact of the shares of Class A common stock related to the 2026 Notes and 2024 Notes using the treasury stock method. The 2026 Capped Calls and 2024 Capped Calls are excluded from the calculation of diluted earnings per share, as they would be antidilutive under the treasury stock method. Credit Facility In December 2020, the Company entered into a credit agreement (the “2020 Credit Agreement”) with certain financial institutions that provides for a three-year In connection with executing the 2020 Credit Agreement, the Company terminated its prior credit agreement dated December 20, 2018, by and between the Company and Bank of America, N.A., which provided for a revolving line of credit in the original principal amount of up to $200.0 million. There were no amounts outstanding at the time of the termination. Under the 2020 Credit Agreement, at the Company’s option, revolving loans accrue interest at a per annum rate based on either (i) the base rate plus a margin ranging from 0.50% to 1.00%, determined based on the Company’s consolidated leverage ratio for the four most recent fiscal quarters (the “Consolidated Leverage Ratio”) or (ii) the LIBOR rate (for interest periods of one, two, three or six months) plus a margin ranging from 1.50% to 2.00%, determined based on the Company’s Consolidated Leverage Ratio (“LIBOR Loan”). The base rate is defined as the highest of (i) the federal funds rate, plus 0.50%, (ii) Bank of America, N.A.’s prime rate and (iii) the LIBOR rate for a one-month interest period plus 1.00%. The Company is also obligated to pay an ongoing commitment fee on undrawn amounts at a rate ranging from 0.25% to 0.35%, determined based on the Company’s Consolidated Leverage Ratio. As of December 31, 2020, we had no amounts outstanding under the 2020 Credit Agreement. Debt issuance costs of $1.4 million associated with the 2020 Credit Agreement were capitalized and are amortized on a straight-line basis over the three-year |
Other Current and Non-Current L
Other Current and Non-Current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Current and Non-Current Liabilities | 11. Other Current and Non-Current Liabilities Other current liabilities consist of the following (in millions): December 31, December 31, 2020 2019 Accrued accounts payable $ 58.1 $ 41.4 Accrued compensation liability 61.7 52.5 Contingent consideration obligation 323.6 180.0 Accrued payable from acquisitions — 30.0 Value-added taxes payable 6.4 2.9 Other current liabilities 12.6 8.0 Total other current liabilities $ 462.4 $ 314.8 Our accrued compensation liability represents employee bonus and other payroll withholding expenses, while other current liabilities include various expenses that we accrue for sales and other taxes, customer deposits and accrued vendor expenses. Other non-current liabilities consist of the following (in millions): December 31, December 31, 2020 2019 Contingent consideration obligation $ 213.6 $ 140.1 Accrued payable from acquisitions 136.0 — Deferred Consideration payable 24.4 — Uncertain tax positions, including interest and penalties 24.8 15.9 Other non-current liabilities 2.3 2.4 Total other non-current liabilities $ 401.1 $ 158.4 |
Stockholders' Equity and Other
Stockholders' Equity and Other Employee Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity and Other Employee Benefits | 12. Stockholders’ Equity and Other Employee Benefits Common Stock Our three classes of common stock are Class A, Class B and Class C common stock. On May 2, 2018, our founder, Mark Pincus, elected to convert certain outstanding shares of Class B common stock and all outstanding shares of Class C common stock controlled by Mr. Pincus and an affiliated investment entity into an equivalent number of shares of Class A common stock. As a result of Mr. Pincus’ conversion, the remaining shares of Class B common stock represented less than 10% of the total voting power of all Zynga stockholders and, accordingly, each remaining outstanding share of Class B common stock automatically converted into one share of Class A common stock. Each Zynga stockholder now has one vote per share on all matters subject to stockholder vote. Following the conversion, no shares of Class B or Class C common stock are outstanding. The following are the rights and privileges of our classes of common stock: Dividends. The holders of outstanding shares of our 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. 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 common stock. Preemptive or Similar Rights. None of our 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. The Class B and Class C common stock converted into Class A common stock may not be reissued. Stock Repurchases In April 2018, a share repurchase program was authorized for up to $200.0 million of our outstanding Class A common stock (the “2018 Share Repurchase Program”). The timing and amount of any stock repurchase will be determined based on market conditions, share price and other factors. The program does not require us to repurchase any specific number of shares of our Class A common stock and may be modified, suspended or terminated at any time without notice. The 2018 Share Repurchase Program is authorized to remain in effect until April 2022 and will be funded from existing cash on hand or other sources of funding as the Company may determine to be appropriate. Share repurchases under these authorizations may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, purchases through 10b5-1 plans or by any combination of such methods. As of December 31, 2020, we had $173.8 million remaining under the 2018 Share Repurchase Program. The 2018 Share Repurchase Program is authorized to remain in effect until April 2022 All of our stock repurchases were made through open market purchases under Rule 10b5-1 plans and subsequently retired. 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 RSUs 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 RSUs 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 or such lesser number of shares that may be determined by the Company’s Board of Directors. During the year ended December 31, 2020, there was no increase in the Class A common stock reserved for future issuance under the 2011 Plan. We recorded stock-based compensation expense related to grants of employee stock options, RSUs and performance and market-based awards in our consolidated statements of operations as follows (in millions): Year Ended December 31, 2020 2019 2018 Cost of revenue $ 2.0 $ 1.5 $ 1.6 Research and development 73.4 47.0 42.1 Sales and marketing 14.7 11.3 8.5 General and administrative 32.5 21.7 16.0 Total stock-based compensation expense $ 122.6 $ 81.5 $ 68.2 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 and 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 shows stock option activity for the year ended December 31, 2020 (in millions, except weighted-average exercise price and weighted-average 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, 2019 31.2 $ 3.24 $ 89.8 7.19 Granted 1.6 6.55 Forfeited, expired and cancelled — — Exercised (2.7 ) 2.87 Balance as of December 31, 2020 30.1 $ 3.46 $ 193.1 6.43 As of December 31, 2020 Exercisable options 20.8 $ 3.06 $ 142.1 6.00 Vested and expected to vest 30.1 $ 3.46 $ 193.1 6.43 The following table presents the weighted-average grant date fair value and related assumptions used to estimate the fair value of our stock options: Year Ended December 31, 2020 2019 2018 Expected term, in years 6 6 6 Risk-free interest rates 0.80 % 2.53 % 2.14 % Expected volatility 36 % 43 % 47 % Dividend yield — — — Weighted-average estimated fair value of stock options granted during the year $ 2.35 $ 2.41 $ 1.61 The aggregate intrinsic value of stock options exercised during the year ended December 31, 2020, 2019 and 2018 was $12.4 million, $44.9 million and $6.3 million, respectively. The total grant date fair value of options that vested during the year ended December 31, 2020, 2019 and 2018 was $13.1 million, $9.5 million and $6.0 million, respectively. As of December 31, 2020, total unrecognized stock-based compensation expense of $15.5 million related to unvested stock options is expected to be recognized over a weighted-average recognition period of approximately 1.2 years. RSU Activity RSUs are granted to eligible employees under the 2011 Plan. In general, RSU 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 RSUs is determined using the fair value of our common stock on the date of grant. The following table shows a summary of RSU activity for the year ended December 31, 2020, which includes performance and market-based awards (in millions, except weighted-average grant date fair value): Outstanding RSUs Weighted- Average Grant Date Aggregate Intrinsic Fair Value Value of Shares (per share) Unvested RSUs Unvested as of December 31, 2019 40.2 $ 4.23 $ 246.0 Granted 46.3 8.63 Vested (17.5 ) 4.05 Forfeited (4.5 ) 4.52 Unvested as of December 31, 2020 64.5 $ 7.43 $ 636.0 As of December 31, 2020, total unamortized stock-based compensation expense relating to RSUs amounted to $426.4 million over a weighted-average recognition period of approximately 3.3 years. Performance RSU On March 15, 2020, the Company granted performance-based awards to certain executive officers (the “Executive Officer Performance RSUs”). The number of shares earned ranged from 0% to 120% of the target number of shares granted and were dependent upon on actual operating cash flows for the year ended December 31, 2020 relative to pre-established thresholds. The target number of shares granted totaled 0.6 million and based on actual operating cash flows for the year ended December 31, 2020, the highest threshold was achieved resulting in the actual shares earned of 0.7 million. The shares earned will vest over a period of four years following the grant date, with 25% vesting on the one year anniversary of the grant date and the remaining quarterly thereafter, subject to continued service by the executives. Outside of the Executive Officer Performance PSUs, certain employees are eligible to receive Performance RSUs, which are subject to performance and time-based vesting requirements. The target number of shares of the Performance RSUs 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. During the years ended December 31, 2020, 2019 and 2018, we recorded $2.8 million, $1.2 million and $1.8 million, respectively, of stock-based compensation expense related to Performance RSUs. Market RSUs On March 15, 2020, the Company granted Market RSUs to certain executive officers, with two separate prescribed measurement periods. Both prescribed measurement periods began on the grant date, with the first prescribed measurement period ending on December 31, 2021 (the “Two-Year Market RSUs”) and the second period ending on December 31, 2022 (the “Three-Year Market RSUs”). The number of RSUs earned (if any) will range from 0% to 150% of the target number of shares, depending on actual achievement of specific tiers for Zynga’s total shareholder return (“TSR”) relative to the TSR of companies comprising the S&P MidCap 400 Index over the prescribed measurement periods. If Zynga’s TSR is negative during any measurement period, the number of RSUs earned is capped at 100% of the target number of shares for that prescribed measurement period. Any shares earned will vest in three equal annual increments, beginning on March 15 of the year following the conclusion of each prescribed measurement period, subject to continued service by the executives. The target number of shares totaled 2.2 million each for the Two-Year Market RSUs and the Three-Year Market RSUs, for a total of 4.4 million target shares. The estimated per share grant date fair value of the Two-Year Market RSUs and Three-Year Market RSUs was $7.37 and $7.41, respectively. The significant assumptions used in estimating the grant date fair value of each award include an expected volatility of 27%, a risk-free interest rate ranging from 0.5% to 0.6% and an expected dividend yield of zero. During the year ended December 31, 2020, we recorded $8.0 million of stock-based compensation expense related to the Market RSUs. 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, 25,000,000 shares or the number of shares that may be determined by the Company’s Board of Directors. During the year ended December 31, 2020, there was no increase in the Class A common stock reserved for future issuance under the 2011 ESPP. 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. Additionally, 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, 2020, there were $3.8 million of employee contributions withheld by the Company. During the year ended December 31, 2020, 2019 and 2018, the Company recognized $3.6 million, $3.4 million and $2.9 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 2020, 2019 and 2018, 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 this savings plan was $6.5 million, $5.8 million and $4.7 million in the year ended December 31, 2020, 2019 and 2018, respectively. Common Stock Reserved for Future Issuance As of December 31, 2020, we had reserved shares of common stock for future issuance as follows (in millions): December 31, 2020 Stock options outstanding 30.1 RSUs outstanding 64.4 2011 Equity Incentive Plan 109.3 2011 Employee Stock Purchase Plan 120.6 Total 324.4 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 13. Accumulated Other Comprehensive Income (Loss) The following table shows a summary of changes in accumulated other comprehensive income (loss) by component from December 31, 2018 to December 31, 2020 (in millions): Foreign Currency Translation Unrealized Gains on Available- For-Sale Marketable Debt Securities Total Balance as of December 31, 2018 $ (118.4 ) $ — $ (118.4 ) Other comprehensive income (loss) before reclassifications (7.7 ) 0.2 (7.5 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss), net of tax (7.7 ) 0.2 (7.5 ) Balance as of December 31, 2019 $ (126.1 ) $ 0.2 $ (125.9 ) Other comprehensive income (loss) before reclassifications 75.3 (0.1 ) 75.2 Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss), net of tax 75.3 (0.1 ) 75.2 Balance as of December 31, 2020 $ (50.8 ) $ 0.1 $ (50.7 ) |
Net Income (Loss) Per Share of
Net Income (Loss) Per Share of Common Stock | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share of Common Stock | 14. Net Income (Loss) Per Share of Common Stock As noted previously, our founder, Mark Pincus, elected to convert certain outstanding shares of Class B common stock and all outstanding shares of Class C common stock controlled by Mr. Pincus and an affiliated investment entity into an equivalent number of shares of Class A common stock in May 2018. Following the conversion, no shares of Class B or Class C common stock are outstanding and accordingly, the Company calculated basic and dilutive net income (loss) per share under a single-class method. 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 RSUs, unvested performance and market-based RSUs, ESPP withholdings and convertible debt instruments. 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 tables set forth the computation of basic and diluted net income (loss) per share of common stock (in millions, except per share data): Year Ended December 31, 2020 2019 2018 (1) Class A Class A Class A Basic Net income (loss) attributable to common stockholders $ (429.4 ) $ 41.9 $ 15.5 Weighted-average common shares outstanding 1,016.8 938.7 862.5 Net income (loss) per share attributable to common stockholders $ (0.42 ) $ 0.04 $ 0.02 Diluted Net income (loss) attributable to common stockholders – basic $ (429.4 ) $ 41.9 $ 15.5 Weighted-average common shares outstanding – basic 1,016.8 938.7 862.5 Weighted-average effect of dilutive securities: Stock options and employee stock purchase plan — 13.0 11.0 RSUs — 22.3 15.1 Performance-based RSUs — — 1.0 Weighted-average common shares outstanding – diluted 1,016.8 974.0 889.6 Net income (loss) per share attributable to common stockholders – diluted $ (0.42 ) $ 0.04 $ 0.02 (1) The net income (loss) per share calculation for the year ended December 31, 2018 is presented as if the one-for-one class conversion occurred as of the beginning of the period. 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 millions): Year Ended December 31, 2020 2019 2018 Stock options and employee stock purchase plan 31.3 3.7 6.2 RSUs (including performance and market-based awards) 56.6 0.6 8.1 Total 87.9 4.3 14.3 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. 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 not necessarily the periods in which these costs will be expensed in the Company’s consolidated statement of operations. Licensor Commitments We have entered into several contracts with licensors that contain minimum contractual commitments that may not be dependent on any deliverables. As of December 31, 2020, future minimum contractual royalty payments due to licensors for the licensed products are as follows (in millions): Year ending December 31: 2021 $ 11.3 2022 0.4 2023 10.4 Thereafter — Total $ 22.1 Other Purchase Commitments We have entered into several contracts primarily for hosting of data systems and other services. As of December 31, 2020, future minimum purchase commitments that have initial or remaining non-cancelable terms are as follows (in millions): Year ending December 31: 2021 $ 17.5 2022 6.7 2023 1.1 Thereafter — Total $ 25.3 Excluded from tables above is our uncertain income tax position liability of $24.8 million, which includes interest and penalties, as the Company cannot make a reasonably reliable estimate of the period of cash settlement. 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. On September 12, 2019, the Company announced that an incident had occurred that may have involved player data (the “Data Incident”). Upon our discovery of the Data Incident, an investigation immediately commenced and advisors and third-party forensics firms were retained to assist. The investigation revealed that, during the third quarter of 2019, outside hackers illegally accessed certain player account information and other Zynga information, and that no financial information was accessed. The Company has provided notifications to players, investors, regulators and other third parties, where we believe notice was required or appropriate. The Company has exchanged correspondence with certain regulators as a result of the incident. The Company has also received and has responded to data subject access requests from certain European Union players of Zynga’s games. Since March 3, 2020, five consumer class action complaints have been filed in connection with the Data Incident in federal court. On March 3, 2020, two plaintiffs – minor “I.C.” (acting through his parent Nasim Chaudhri) and Amy Gitre – filed a class action complaint arising out of the Data Incident (the “ Chaudhri complaint”), generally alleging that Zynga failed to reasonably safeguard certain player information, including names, email addresses, and passwords (among other items); failed to provide them with timely notification of the breach; and made misleading representations concerning the safety and security of plaintiffs’ personal information. Plaintiffs allege claims against Zynga under several state law theories, including negligence, intrusion upon seclusion, failure to comply with data breach notification statutes, and unjust enrichment, and they seek injunctive relief and damages. Zynga filed a motion to compel arbitration and arbitration-related discovery on May 8, 2020. On March 23, 2020, plaintiffs Carol Johnson and Lisa Thomas filed a second class action complaint in the Northern District of California federal court (the “ Johnson complaint”). Similar to the Chaudhri complaint, the Johnson plaintiffs – residents of Missouri and Wisconsin – assert Zynga failed to adequately protect certain player information, including names, email addresses, and passwords (among other items). Plaintiffs contend that, despite Zynga’s representations in its privacy policy that sensitive player information would be adequately protected, plaintiffs’ passwords were stored using inadequate hashing methods or in plain text. Plaintiffs allege that the lack of adequate security measures caused them harm as a result of the Data Incident, and they assert numerous various claims against Zynga, including claims for negligence, negligence per se, unjust enrichment, declaratory relief, breach of confidence, breach of contract and implied contract, violations of California’s Unfair Competition Law (“UCL”, CGL 17200, et seq.), and state-specific violations of Missouri’s Merchandising Practices Act and Wisconsin’s Deceptive Trade Practices Act. Plaintiffs seek damages, as well as declaratory and injunctive relief. On May 26, 2020, Zynga filed a motion to compel arbitration and arbitration-related discovery. On April 15, 2020, plaintiffs Joseph Martinez IV and Daniel Petro, residents of Colorado and Iowa, filed a third class action complaint in the Northern District of California (the “ Martinez Chaudhri Johnson Martinez failed to adequately store and protect or otherwise secure certain player information , including names, email addresses, and passwords (among other items) ; that Zynga used outdated and improper password encryption methods; that Zynga failed to adequately provide notice of the Data Incident; and that they have been harmed as a result of the Data Incident. Like the Johnson and Chaudhri plaintiffs , the Martinez plaintiffs assert claims for negligence, negligence per se, and unjust enrichment, as well as contractual claims, and claims for relief under multiple state consumer protection statutes. Additionally, the Martinez plaintiffs also assert misrepresentation and omission claims under California’s false advertising law and the California Consumer Legal Remedies Act. Plaintiffs seek injunctive and monetary relief on behalf of a nationwide class. Zynga responded to the Martinez complaint by filing a motion to compel arbitration on June 19, 2020. On January 6, 2021, the district court issued an order in all three of the above actions— Chaudhri Johnson Martinez On June 9, 2020 plaintiffs James Oeste and Marissa Oeste, both residents of Maryland, filed a fourth class action complaint in the Northern District of Maryland (the “ Oeste Oeste Oeste On August 13, 2020, plaintiff Christopher Rosiak filed a fifth class action in the Northern District of California (the “ Rosiak Martinez The Company intends to defend itself vigorously against all claims asserted. At this time, the Company is unable to reasonably estimate the loss or range of loss, if any, arising from any of the above-referenced matters. 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. |
Financial Statement Schedules -
Financial Statement Schedules - Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Financial Statement Schedules - Schedule II - Valuation and Qualifying Accounts | 2. Financial Statements Schedule: Schedule II: Valuation and Qualifying Accounts (in millions) Allowance for Credit Losses and Reserve for Uncollectible Advances Balance at Beginning of Year (1) Charges to Expense Write-Offs, Net of Recoveries Balance at End of Year Year Ended December 31, 2020 $ 0.4 $ 0.1 $ — $ 0.5 Year Ended December 31, 2019 2.7 0.1 (2.8 ) — Year Ended December 31, 2018 — 3.2 (0.5 ) 2.7 (1) The beginning balance for the year ended December 31, 2020 reflects the $0.4 million allowance for credit loss associated with our adoption of ASU 2016-13 on January 1, 2020 All other schedules have been omitted because they are not required, not applicable, or the required information is otherwise included. |
Overview and Summary of Signi_2
Overview and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 owned subsidiaries. All 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 average playing period of payers that we use for revenue recognition, useful lives of property and equipment and intangible assets, accrued liabilities, income taxes, the fair value of assets and liabilities acquired through business combinations, contingent consideration obligations, the discount rate used in measuring our operating lease liabilities, the interest rate used in calculating the present value of the initial liability component of our convertible senior notes, stock-based compensation expense and evaluation of recoverability of goodwill, intangible assets and long-lived assets. Actual results could differ materially from those estimates. |
Segments | Segments We have one operating and reportable segment, which is at the consolidated entity 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 substantially all of our revenue from the sale of virtual items and advertising associated with our online games. Online Game. We operate our games as live services that allow players to play for free. Within these games, however, players can purchase virtual currency to obtain virtual goods or virtual goods directly (together, defined as “virtual items” or a “virtual item”) to enhance their game-playing experience. Our identified performance obligation is to display the virtual items within the game over the estimated playing period of the paying player or until they are consumed in game play based upon the nature of the virtual item. Payment is required at time of purchase and the purchase price is a fixed amount. Players can purchase our virtual items through various widely accepted payment methods offered in the games, including Apple iTunes accounts, Google Play accounts and Facebook local currency payments. Payments from players for virtual items are non-refundable and relate to non-cancellable contracts that specify our obligations. Such payments are initially recorded to deferred revenue. For revenue earned through mobile platforms, the transaction price is equal to the gross amount we request to be charged to our player because we are the principal in the transaction. The related platform and payment processing fees are recorded as cost of revenue in the period incurred. For revenue earned on our web based games through Facebook, our players utilize Facebook’s local currency-based payments program to purchase virtual items in our games. For all payment transactions on the Facebook platform, Facebook remits to us 70% of the price we request to be charged to the player for each transaction, which represents the transaction price. Despite being the principal in the transaction, we recognize revenue net of the amounts retained by Facebook for platform and payment processing fees because Facebook may choose to alter our requested price, for example by offering a discount or other incentives to players playing on their platform, and we do not receive information from Facebook indicating the amount of such discounts or incentives or the actual amount paid by our players. Accordingly, we are unable to determine the gross amount paid by our players on the Facebook platform. The satisfaction of our performance obligation is dependent on the nature of the virtual item purchased and as a result, we categorize our virtual items as follows: • Consumable: Consumable virtual items represent items that can be consumed by a specific player action. Common characteristics of consumable virtual items may include items 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 (e.g. chips in Zynga Poker ). For the sale of consumable virtual items, we recognize revenue as the items are consumed (i.e., over time), which approximates one month. • Durable: Durable virtual items represent items that are accessible to the player over an extended period of time (e.g. animals in Farmville 2 ). We recognize revenue from the sale of durable virtual items ratably over the estimated average playing period of payers for the applicable game (i.e., over time), which represents our best estimate of the average life of the durable virtual item. If we do not have the ability to differentiate between revenue attributable to consumable virtual items or durable virtual items in a specific game, we recognize revenue ratably over the estimated average playing period of payers for the applicable game. Historically, we have had sufficient data to separately account for consumable and durable virtual items for substantially all of our web games. However, for our standalone mobile games, we do not have the requisite data to separately account for consumable and durable virtual items and therefore recognize mobile online game revenue ratably over the estimated average playing period of payers. We expect that in future periods, there will be changes in the mix of consumable and durable virtual items offered and sold, reduced virtual item sales in some existing games, changes in estimates of the average playing period of payers 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 durable virtual items or the estimated average playing period of payers 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 of payers 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 of payers by game beginning at the time of a payer’s first purchase in the respective game and ending on a date when that paying player is deemed to be no longer playing. To determine when paying players are no longer playing a given game, we analyze monthly cohorts of payers who made their first in-game payment between six and 18 months prior to the beginning of each quarter and determine whether each payer within the cohort is an active or inactive player as of the date of our analysis. To determine which payers are inactive, we analyze the dates that each payer last logged into that game. We determine a payer to be inactive once they have reached a period of inactivity for which it is probable that they 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 payers stopped playing. Based on these dates, we then project a date at which all payers 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 payer is expected to cease playing the game for each of the monthly cohorts to determine the total playing period of payers for that game. To determine the estimated average playing period of payers, we then divide this total period by two. The use of this “average” approach is supported by our observations that payers typically become inactive at a relatively consistent rate for our games. If future data indicates payers 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 payer data is available for our analysis, then we also consider other factors to determine the estimated average playing period of payers, such as the estimated average playing period of payers for other recently launched games with similar characteristics. Advertising. We have contractual relationships with advertising networks, agencies, advertising brokers and directly with advertisers to display advertisements in our games. For all advertising arrangements, we are the principal and our performance obligation is to provide the inventory for advertisements to be displayed in our games. For contracts made directly with advertisers, we are also obligated to serve the advertisements in our games. However, for those direct advertising arrangements, providing the advertising inventory and serving the advertisement is considered a single performance obligation, as the advertiser cannot benefit from the advertising space without its advertisements being displayed. The pricing and terms for all our advertising arrangements are governed by either a master contract or insertion order and generally stipulate payment terms as a specific number of days subsequent to the end of the month, generally ranging from 30 to 60 days. The transaction price in advertising arrangements is generally the product of the number of advertising units delivered (e.g., impressions, offers completed, videos viewed, etc.) and the contractually agreed upon price per advertising unit. Further, for advertising transactions not placed directly with the advertiser, the contractually agreed upon price per advertising unit is generally based on our fixed revenue rate stated in the contract. The number of advertising units delivered is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period. For a limited number of advertising network arrangements, the transaction price is determined based on a volume-tiered pricing structure, whereby the price per advertising unit in a given month is determined by the number of impressions delivered in that month. However, the uncertainty concerning the number of impressions delivered is resolved at the end of each month, therefore, eliminating any uncertainty with respect to the price per advertising unit for each reporting period. For in-game display advertisements, in-game offers, engagement advertisements and other advertisements, our performance obligation is satisfied over the life of contract (i.e., over time), with revenue being recognized as advertising units are delivered. For in-game sponsorships with branded virtual items, revenue is initially recorded to deferred revenue and then recognized ratably over the estimated life of the branded virtual item, which approximates the estimated average playing period of payers, or over the term of the advertising arrangement, depending on the nature of the agreement. 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 foreign certificates of deposit and time deposits with maturities of 90 days or less from the date of purchase. |
Restricted Cash | Restricted Cash Restricted cash consists of funds held in escrow in accordance with the terms of our business acquisition agreements. |
Short and Long-Term Investments | Short and Long-Term Investments Short and long-term debt investments consist of corporate debt securities, U.S. government and government agency debt securities and foreign certificates of deposit and time deposits For debt securities in an unrealized loss position, we first consider whether we intend to or it is more likely than not that we will be required to sell the individual security prior to recovery of its amortized cost basis and if so, we adjust the carrying value of security down to its fair value, with the amount of the write-down recorded as a realized loss within other income (expense), net. Otherwise, we determine whether a decline in fair value is attributable to a partial or full credit loss by reviewing factors such as the extent to which the fair value is less than the amortized cost basis, changes in interest rates since the purchase of the security, the financial condition of the issuer, including changes in credit ratings, the remaining payment terms of the security, as well as any adverse conditions specifically related to the security, the issuer’s industry or its geographic area. If a credit loss exists, we adjust the carrying value by recording expense within other income (expense), net equal to the amount of the credit loss, with such amount limited to the amount of the unrealized loss. Subsequent recoveries of fair value originally attributed to a credit loss are subsequently recognized as income within other income (expense), net. Finally, any unrealized loss not deemed to be attributable to a credit loss is recognized as component of other comprehensive income, net of income taxes. No credit losses related to our debt investments were recognized as a component of other income (expense), net in any of the periods presented. Short-term equity investments consist of privately held mutual funds. All equity investments are reported at fair value, with unrealized gains and losses recorded within other income (expense), net in our consolidated statement of operations. Realized gains and losses for all investments are determined using the specific-identification method and are reflected as a component of other income (expense), net in the consolidated statements of operations. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our financial assets consist of cash, cash equivalents, short-term and long-term investments and accounts receivable, net. Cash equivalents, short-term and long-term investments are reported at fair value while accounts receivable, net are stated at the net realizable amount, which approximates fair value. Our financial liabilities consist of accounts payable and accrued liabilities, contingent consideration obligations, deferred acquisition consideration and debt. Accounts payable and accrued liabilities are stated at the invoiced or estimated payout amount, respectively, and approximate fair value. Contingent consideration obligations and deferred acquisition consideration, which are the result of business acquisitions, are reported at the estimated fair value. Our debt is recorded at the net carrying amount, which does not approximate fair value. However, the fair value of the debt is disclosed at each reporting period – refer to Note 10 – “Debt” for further discussion. 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 were valued based on quoted market prices, model driven valuations using significant inputs derived from or corroborated by observable market data or other directly and indirectly inputs observable in the marketplace. 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. |
Accounts Receivable and Allowance for Credit losses | Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded at the original invoiced amount less an allowance for credit losses. In evaluating our ability to collect outstanding receivable balances and related allowance for credit losses, we consider many factors, including the age of the balance, the customer’s payment history and current creditworthiness, as well as and current and forecasted economic conditions that may affect our customers’ ability to pay. Bad debts are written off after all collection efforts have been exhausted. We do not require collateral from our customers. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment 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 our property and equipment are as follows: Property and Equipment Useful Life Computer equipment 3 years Software 2 to 3 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 In accounting for acquisitions through which a set of assets and activities are transferred to the Company, we perform an initial test to determine whether substantially all of the fair value of the gross assets transferred are concentrated in a single identifiable asset or a group of similar identifiable assets, such that the acquisition would not represent a business. If the initial test does not result in substantially all of the fair value concentrated in a single or group of similar assets, we then perform a second test to evaluate whether the assets and activities transferred include inputs and substantive processes that together, significantly contribute to the ability to create outputs, which would constitute a business. If the result of the second test indicates that the acquired assets and activities constitute a business, we account for the transaction as a business combination. For our business combinations, we allocate the purchase consideration 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 each of the estimated fair values at the acquisition date. The excess of the purchase consideration over the 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 after the acquisition date and the changes in the estimated fair value, if any, 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 during any of the years presented. |
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 by comparing the estimated fair value of our single reporting unit, determined using the Company’s market capitalization as of the testing date, to its carrying value. For our annual goodwill impairment analysis performed in the fourth quarter of 2020, the result 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, 2020. |
Definite-Lived Intangible Assets | Definite-Lived Intangible Assets Definite-lived intangible assets consist of 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 definite-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 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. There were no impairment charges recorded during any of the years presented . |
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 Game of Thrones Slots Casino 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 |
Leases | Leases Lessee Arrangements We determine if an arrangement is a lease at contract inception. If there is an identified asset in the contract (either explicitly or implicitly) and we have control over its use, the contract is (or contains) a lease. In determining if there is an identified asset, we apply judgment in assessing whether the supplier has a substantive substitution right based on the supplier’s practical ability to substitute the asset and the economic benefit to do so. If it is determined that a substantive substitution right exists, the contract is not accounted for as a lease. With the respect to the servers utilized in certain of our hosting and data storage arrangements, the Company determined that a substantive substitution right existed given the location of the servers at the supplier’s premises, a lack of contractual restrictions preventing the supplier from substituting the servers throughout the period of use and the economic incentive for the supplier to substitute the servers as needed in order to efficiently handle varying levels of demand from its customers. We record right-of-use assets and current and non-current operating lease liabilities in our consolidated balance sheet for operating leases with lease terms greater than 12 months and do not to apply the balance sheet recognition requirements to leases with lease terms of 12 months or less (“short-term leases”). Additionally, we do not separate lease components from non-lease components and therefore allocate the entire consideration to the lease component(s). Right-of-use assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments. Right-of-use assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the total required fixed payments over the lease term, with the right-of-use assets further adjusted for any payments made prior to lease commencement, lease incentives received and/or initial direct costs incurred. Certain lease arrangements also include variable payments for costs such as common-area maintenance, utilities, taxes or other operating costs, which are generally based on a percentage of actual expenses incurred or a fluctuating rate which is unknown at the inception of the contract. These variable lease payments are excluded from the measurement of the right-of-use assets and lease liabilities. In determining the present value of lease payments, we discount future lease payments using our incremental borrowing rate since the implicit rate in our various leases is unknown. The incremental borrowing rate is determined at lease commencement for each individual lease and is based on a number of factors, including relevant observable debt transactions, the current economic environment, lease term and currency in which the lease is denominated. As of December 31, 2020, the weighted-average incremental borrowing rate for our operating leases was 4.2%. We recognize lease expense for operating leases and short-term leases on a straight-line basis over the lease term. Variable lease payments are recognized when the underlying uncertainty is resolved, which is generally when the obligation for those costs are incurred. Operating and variable leases expenses are presented as operating expenses in the consolidated statement of operations. Lessor Arrangements We do not separate lease components from non-lease components and therefore allocate the entire consideration in our contracts to the lease components. All of the lease and non-lease components qualify for accounting under ASC Topic 842 Leases |
Stock-Based Compensation Expense | Stock-Based Compensation Expense We recognize stock-based compensation expense for restricted stock units (“RSUs”) based on grant date fair value on a straight-line basis over the requisite service period for the entire award. For certain performance based RSUs, 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 recognize stock-based compensation expense for performance-based RSUs (“Performance RSUs”) based upon the grant date fair value on an accelerated attribution method over the requisite service period of the award. At each reporting period, the amount of stock-based compensation is determined based on the probability of achievement of pre-established thresholds or milestones for each award and if necessary, a cumulative catch-up adjustment is recorded to reflect any revised estimates regarding the probability of achievement. We recognize stock-based compensation expense for the market-based RSUs (“Market RSUs”) based upon the grand date fair value on an accelerated attribution method over the requisite service period. The estimated grant date fair value is estimated using a Monte Carlo simulation that considers the probability of achievement of pre-established thresholds for each award. The significant assumptions generally used in estimating the grant date fair value of each award include expected volatility, a risk-free interest rate ranging and an expected dividend yield. The estimated grant date fair value is not subsequently revised to consider anticipated or actual achievement of the pre-established thresholds. 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 commensurate to the stock option award’s expected life. 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 granted previously. We record stock-based compensation expense for stock options based on the grant date fair value on a straight-line basis over the requisite service period of the award. 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. If necessary, the measurement of deferred tax assets is reduced by the amount of any tax benefits that are not expected to be realized based on all available positive and negative evidence including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies and results of recent operations. In evaluating the objective evidence that the results of recent operations provide, we generally consider the trailing three years of cumulative operating income (loss). The assumptions about future taxable income require the use of significant judgment and are consistent with the plans and estimates we are using to manage the underlying businesses. The Company accounts for Global Intangible Low-Taxed Income provisions as a component of tax expense in the period in which it is subject to the rules. 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. |
Foreign Currency Transactions | Foreign Currency Transactions Generally, the functional currency of our international subsidiaries is the local currency that the international subsidiary operates in or the U.S. dollar. We translate the financial statements of these non-U.S. dollar functional subsidiaries to U.S. dollars using the prevailing balance sheet date exchange rate for assets and liabilities and average exchange rates during the period for revenue and costs and expenses. We record translation gains and losses in accumulated other comprehensive income (loss) as a component of stockholders’ equity. We reflect foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to the functional currency, which includes gains and losses from the remeasurement of assets and liabilities, as a component of other income (expense), net. Foreign exchange transactions gains (losses) recorded as a component of other income (expense), net totaled $(16.7) million, $0.8 million and $(0.2) million for the years ended December 31, 2020, 2019 and 2018. |
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, cash equivalents, short and long-term investments and accounts receivable. The Company holds cash and cash equivalents at reputable financial institutions with what it considers to be high credit quality, and such amounts may at times exceed the federally insured limits. The Company’s investment policy limits the amount of credit exposure in its portfolio by imposing credit rating minimums and limiting purchases by security type and sector. Accounts receivable are unsecured and represent amounts due to us based on contractual obligations where an executed contract or click-through agreement exists. Google, Apple and Facebook are significant distribution, marketing, promotion and payment platforms for our games. A significant portion of our 2020, 2019 and 2018 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, 2020 and December 31, 2019, of our accounts receivable, net 35% and 34%, respectively, were amounts owed to us by Apple, 34% and 33%, respectively, were amounts owed to us by Google and 8% and 13%, respectively, were amounts owed to us by Facebook. |
Advertising Expense | Advertising Expense Costs for marketing and advertising our games are primarily expensed as incurred and are included in sales and marketing expense in our consolidated statement of operations. Such costs, primarily consisting of player acquisition costs, totaled $583.1 million, $377.2 million and $157.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Issued But Not Yet Adopted In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-08, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)” Issued And Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” ASC Topic 350-40, Internal-Use Software In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes” |
Debt | We separately accounted for the liability and equity components of the 2026 Notes and 2024 Notes. We determined the initial carrying amount of the $707.4 million liability component of the 2026 Notes by calculating the present value of the cash flows using an effective interest rate of 3.5%. We determined the initial carrying amount of the $572.0 million liability component of the 2024 Notes by calculating the present value of the cash flows using an effective interest rate of 4.1 %. The effective interest rate s w ere determined based on non-convertible debt offerings , of similar sizes and terms , by companies with similar credit ratings and other observable market data (Level 2 inputs). The amount of the equity component, representing the conversion option, was $167.1 million for the 2026 Notes and $118.0 million for the 2024 Notes and was calculated by deducting the initial carrying value of the liability component from the principal amount of the 2026 Notes and 2024 Notes, respectively. This difference represents a debt discount that is amortized to interest expense over the 6-year and 5-year contractual periods of the 2026 Notes and 2024 Notes, respectively, using the effective interest rate method. The equity components are not subsequently remeasured as long as they continue to meet the conditions for equity classification. We allocated transaction costs related to the issuance of the respective series of the 2026 Notes and 2024 Notes to the liability and equity components using the same proportions as the initial carrying value of the respective series of the 2026 Notes and 2024 Notes. The respective transaction costs are then amortized to interest expense using the effective interest method over the terms of the respective series of 2026 Notes and 2024 Notes. Transaction costs initially attributable to the liability component of the 2026 Notes and 2024 Notes were $14.3 million and $14.8 million, respectively, while transaction costs attributable to the equity component of the 2026 Notes and 2024 Notes were $3.4 million and $3.1 million, respectively. The transaction costs attributable to the equity component are accounted for consistently with the equity component of the 2026 Notes and 2024 Notes. |
Earnings Per Share | As noted previously, our founder, Mark Pincus, elected to convert certain outstanding shares of Class B common stock and all outstanding shares of Class C common stock controlled by Mr. Pincus and an affiliated investment entity into an equivalent number of shares of Class A common stock in May 2018. Following the conversion, no shares of Class B or Class C common stock are outstanding and accordingly, the Company calculated basic and dilutive net income (loss) per share under a single-class method. 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 RSUs, unvested performance and market-based RSUs, ESPP withholdings and convertible debt instruments. 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. |
Legal Contingencies | Legal Matters |
Legal Expenses | Legal expenses are recognized as incurred. |
Overview and Summary of Signi_3
Overview and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and Equipment | The estimated useful lives of our property and equipment are as follows: Property and Equipment Useful Life Computer equipment 3 years Software 2 to 3 years Furniture and fixtures 2 years Leasehold improvements Shorter of useful life (generally up to 7 years) or remaining lease term |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregated Revenue | The following table presents our revenue disaggregated by platform (in millions): Year Ended December 31, 2020 2019 2018 Online game: Mobile $ 1,596.6 $ 981.2 $ 590.5 Other (1) 70.6 66.1 80.4 Online game total $ 1,667.2 $ 1,047.3 $ 670.9 Advertising and other: Mobile $ 302.5 $ 266.5 $ 225.1 Other (1) 5.1 7.9 11.2 Advertising and other total $ 307.6 $ 274.4 $ 236.3 Total revenue $ 1,974.8 $ 1,321.7 $ 907.2 (1) Includes web revenue for online game and web advertising revenue and other revenue for advertising and other. The following table presents our revenue disaggregated based on the geographic location of our payers (in millions): Year Ended December 31, 2020 2019 2018 United States $ 1,211.7 $ 826.6 $ 594.0 All other countries (1) 763.1 495.1 313.2 Total revenue $ 1,974.8 $ 1,321.7 $ 907.2 (1) No foreign country exceeded 10% of our total revenue for any periods presented. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Summary of Available-for-Sale Short-Term and Long-Term Investments | The following tables summarize the amortized cost, gross unrealized gains and losses and fair value of our short-term and long-term debt securities as of December 31, 2020 and 2019 (in millions): December 31, 2020 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Short-term debt securities: Corporate debt securities $ 152.7 $ 0.1 $ — $ 152.8 Foreign certificates of deposit and time deposits 6.5 — — 6.5 Total $ 159.2 $ 0.1 $ — $ 159.3 Long-term debt securities: Corporate debt securities $ 2.0 $ — $ — $ 2.0 Total $ 2.0 $ — $ — $ 2.0 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Short-term debt securities: Corporate debt securities $ 814.9 $ 0.1 $ — $ 815.0 U.S. government and government agency debt securities 25.0 — — 25.0 Foreign certificates of deposit and time deposits 53.8 — — 53.8 Total $ 893.7 $ 0.1 $ — $ 893.8 Long-term debt securities: Corporate debt securities $ 108.2 $ 0.1 $ — $ 108.3 U.S. government and government agency debt securities 67.0 — — 67.0 Total $ 175.2 $ 0.1 $ — $ 175.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets and Liabilities Measured on Recurring Basis | The composition of our financial assets and liabilities as of December 31, 2020 and 2019 among the three levels of the fair value hierarchy are as follows (in millions): December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 611.1 $ — $ — $ 611.1 Corporate debt securities — 313.0 — 313.0 Foreign certificates of deposit and time deposits — 85.6 — 85.6 Short-term investments: Corporate debt securities — 152.8 — 152.8 Foreign certificates of deposit and time deposits — 6.5 — 6.5 Mutual funds — 49.1 — 49.1 Long-term investments: Corporate debt securities — 2.0 — 2.0 Total financial assets $ 611.1 $ 609.0 $ — $ 1,220.1 Liabilities: Contingent consideration $ — $ — $ 463.1 $ 463.1 Total financial liabilities $ — $ — $ 463.1 $ 463.1 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 0.6 $ — $ — $ 0.6 Corporate debt securities — 151.8 — 151.8 Foreign certificates of deposit and time deposits — 3.3 — 3.3 Short-term investments: Corporate debt securities — 815.0 — 815.0 U.S. government and government agency debt securities — 25.0 — 25.0 Foreign certificates of deposit and time deposits — 53.8 — 53.8 Mutual funds — 44.4 — 44.4 Long-term investments: Corporate debt securities — 108.3 — 108.3 U.S. government and government agency debt securities — 67.0 — 67.0 Total financial assets $ 0.6 $ 1,268.6 $ — $ 1,269.2 Liabilities: Contingent consideration $ — $ — $ 320.1 $ 320.1 Total financial liabilities $ — $ — $ 320.1 $ 320.1 |
Fair Value Liabilities Measured on Recurring Basis | The following table presents the activity for the year ended December 31, 2020 related to our Level 3 liabilities (in millions): Contingent Consideration Balance as of December 31, 2019 $ 320.1 Additions 47.7 Fair value adjustments 359.3 Payments (189.9 ) Gram Games contingency resolution (74.1 ) Balance as of December 31, 2020 $ 463.1 |
Significant Unobservable Inputs Used in Measuring the Fair Value | The table below outlines the significant unobservable inputs used in estimating the fair value of the remaining Small Giant and Rollic contingent consideration liabilities as of December 31, 2020, weighted by the relative fair value of each annual period’s obligation to the total obligation. December 31, 2020 Range Weighted Average Bookings growth rates 5.3% - 54.7% 11.2% Bookings volatility 27.0% - 54.0% 33.3% Asset volatility 40.0% - 60.0% 44.6% Net cash flow margins 24.6% - 45.6% 41.4% Discount rates 10.0% - 30.0% 14.6% |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment, Net | Property and equipment, net consist of the following (in millions): December 31, December 31, 2020 2019 Computer equipment $ 30.4 $ 25.0 Software 35.1 33.9 Furniture and fixtures 10.6 11.6 Leasehold improvements 30.8 20.0 Total property and equipment, gross $ 106.9 $ 90.5 Less: Accumulated depreciation (67.6 ) (64.7 ) Total property and equipment, net $ 39.3 $ 25.8 |
Property and Equipment, Net | The following represents our property and equipment, net by location (in millions): December 31, December 31, 2020 2019 United States $ 23.4 $ 16.1 Turkey 7.7 0.7 India 4.3 5.3 United Kingdom 3.0 3.2 All other countries 0.9 0.5 Total property and equipment, net $ 39.3 $ 25.8 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense were as follows (in millions): Year Ended December 31, 2020 2019 Operating lease expense $ 22.1 $ 15.1 Variable lease expense 7.9 4.6 Total lease expense (1) $ 30.0 $ 19.7 |
Schedule of Supplemental Cash Flow and Non-Cash Information Related to Operating Leases Excluding Transition Adjustments | For the year ended December 31, 2020 and 2019, supplemental cash and noncash information related to operating leases, excluding any transition adjustments, was as follows (in millions): Year Ended December 31, 2020 2019 Fixed operating lease payments $ 22.9 $ 16.7 Right-of-use assets obtained in exchange for operating lease liabilities (noncash) 11.5 138.9 |
Schedule of Future Lease Payments Related to Our Operating Leases | As of December 31, 2020, future lease payments related to our operating leases were as follows (in millions): Year ending December 31: Operating Leases 2021 $ 24.0 2022 20.3 2023 18.9 2024 16.4 2025 13.0 Thereafter 77.9 Total lease payments 170.5 Less: Imputed interest (30.0 ) Total lease liability balance $ 140.5 |
Schedule of Components of Lease Income | For the years ended December 31, 2019, the components of lease income were as follows, all of which was recognized prior to the Building Sale and was recorded within other income (expense), net in our consolidated statement of operations (in millions): Year Ended December 31, 2019 Operating lease income $ 10.6 Variable lease income 1.1 Total lease income $ 11.7 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Unaudited Pro Forma Financial Information | The unaudited pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of 2019 (in millions, except per share data). Year Ended December 31, 2020 2019 Total revenue $ 2,506.0 $ 1,706.7 Net income (loss) (270.3 ) (178.4 ) Basic and diluted net income (loss) per share (0.27 ) (0.17 ) |
Rollic [Member] | |
Schedule of Acquisition Price Allocation | The following table summarizes the acquisition date fair value of the assets, including intangible assets, liabilities assumed and related goodwill acquired from Rollic (in millions): Estimated Purchase Price Allocation Cash $ 13.5 Accounts receivable 15.7 Prepaid expenses 2.5 Other current assets 1.9 Intangible assets: Developed technology, weighted average useful life of 6 years 38.5 Third-party developer relationships, useful life of 4 years 42.0 Trade name, useful life of 7 years 22.0 Goodwill 131.5 Property and equipment 0.3 Right-of-use assets 0.1 Total assets acquired 268.0 Accounts payable (9.1 ) Income taxes payable (1.9 ) Operating lease liabilities (0.1 ) Other current liabilities (7.9 ) Deferred tax liabilities, net (20.8 ) Total liabilities (39.8 ) Total purchase price consideration $ 228.2 Non-current contingent consideration payable (47.7 ) Total cash consideration, including cash held in escrow $ 180.5 |
Peak [Member] | |
Schedule of Acquisition Price Allocation | The following table summarizes the acquisition date fair value of the assets, including intangible assets, liabilities assumed and related goodwill acquired from Peak (in millions): Estimated Purchase Price Allocation Cash $ 10.8 Accounts receivable 64.3 Prepaid expenses 1.7 Other current assets 12.6 Intangible assets: Developed technology, useful life of 5 years 495.0 Trade names, useful life of 7 years 115.0 Domain names, weighted average useful life of 14 years 4.6 Goodwill 1,513.7 Property and equipment 6.8 Right-of-use assets 9.7 Other non-current assets 0.5 Total assets acquired 2,234.7 Accounts payable (14.2 ) Operating lease liabilities (2.2 ) Other current liabilities (16.7 ) Deferred tax liabilities, net (108.4 ) Non-current operating lease liabilities (7.5 ) Other non-current liabilities (1.9 ) Total liabilities (150.9 ) Total purchase price consideration $ 2,083.8 Fair value of Zynga Stock Consideration issued (1) (1,137.7 ) Total cash consideration, including cash held in escrow (2) $ 946.1 (1) The fair value of the Zynga Stock Consideration (2) The amount shown represents the cash paid at closing (which includes the Escrow Consideration) as well as present value of the Deferred Consideration, which was estimated as $23.8 million at the acquisition date using a discount rate commensurate with the term of the Deferred Consideration of 4.9%. |
Small Giant [Member] | |
Schedule of Acquisition Price Allocation | The following table summarizes the acquisition date fair value of the tangible assets, intangible assets, assumed liabilities, contingent consideration payable and related goodwill acquired from Small Giant (in millions): Estimated Purchase Price Allocation Cash $ 34.2 Accounts receivable 23.0 Prepaid expenses 2.5 Intangible assets: Developed technology, useful life of 5 years 155.0 Trade names, useful life of 7 years 32.0 Goodwill 531.2 Property and equipment 0.2 Right-of-use assets 0.9 Other non-current assets 0.1 Total assets acquired 779.1 Accounts payable (1.7 ) Income tax payable (5.6 ) Operating lease liabilities (0.4 ) Other current liabilities (15.6 ) Deferred tax liabilities, net (37.4 ) Non-current operating lease liabilities (0.5 ) Total liabilities (61.2 ) Total purchase consideration $ 717.9 Fair value of Zynga Stock Consideration (1) (253.9 ) Non-current contingent consideration payable (98.0 ) Total cash consideration, including cash held in escrow $ 366.0 (1) The fair value of the Zynga Stock Consideration above is estimated based on the total shares issued of 63,794,746 and the closing stock price of Zynga’s Common A stock on January 2, 2019 of $3.98 per share. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes to Goodwill | The following table presents the changes to goodwill from December 31, 2018 to December 31, 2020 (in millions): Goodwill Balance as of December 31, 2018 (1) $ 934.2 Additions 531.2 Foreign currency translation adjustments (2) (4.5 ) Balance as of December 31, 2019 (1) $ 1,460.9 Additions 1,645.2 Foreign currency translation adjustments (2) 54.7 Balance as of December 31, 2020 (1) $ 3,160.8 (1) There are no accumulated impairment losses at the beginning or end of any period presented. (2) The change is primarily related to translation adjustments on goodwill associated with the acquisitions of Small Giant and NaturalMotion, which have functional currencies denominated in the Euro and the British Pound, respectively. |
Acquisition-Related Intangible Assets | The details of our acquisition-related intangible assets as of December 31, 2020 and 2019 are as follows (in millions): December 31, 2020 Gross Carrying Accumulated Net Book Value Amortization Value Developed technology $ 972.2 $ (346.5 ) $ 625.7 Trademarks, branding and domain names 208.5 (35.5 ) 173.0 Third-party developer relationships 42.0 (2.6 ) 39.4 Noncompetition agreements 8.4 (8.4 ) — Total $ 1,231.1 $ (393.0 ) $ 838.1 December 31, 2019 Gross Carrying Accumulated Net Book Value Amortization Value Developed technology $ 415.5 $ (228.0 ) $ 187.5 Trademarks, branding and domain names 63.8 (18.6 ) 45.2 Noncompetition agreements 8.4 (8.1 ) 0.3 Total $ 487.7 $ (254.7 ) $ 233.0 |
Schedule of Finite Lived Intangible Assets Future Amortization Expense | As of December 31, 2020, future amortization expense related to our intangible assets is expected to be recognized as follows (in millions): Year ending December 31: 2021 $ 201.6 2022 191.8 2023 178.2 2024 138.9 2025 80.0 Thereafter 41.5 Total $ 832.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 millions): Year Ended December 31, 2020 2019 2018 United States $ (443.5 ) $ 155.9 $ 30.0 International 38.1 (108.6 ) (3.5 ) Total $ (405.4 ) $ 47.3 $ 26.5 |
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 millions): Year Ended December 31, 2020 2019 2018 Current tax expense (benefit): Federal $ 9.0 $ 11.6 $ 3.9 State 2.5 5.4 0.2 Foreign 52.2 7.7 12.0 Total current tax expense (benefit) $ 63.7 $ 24.7 $ 16.1 Deferred tax expense (benefit): Federal $ 4.5 $ 0.1 $ 1.4 State 2.3 0.5 0.4 Foreign (46.5 ) (19.9 ) (6.9 ) Total deferred tax expense (benefit) $ (39.7 ) $ (19.3 ) $ (5.1 ) Provision for (benefit from) income taxes $ 24.0 $ 5.4 $ 11.0 |
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 millions): Year Ended December 31, 2020 2019 2018 Expected provision for (benefit from) income taxes at U.S. federal statutory rate (1) $ (85.1 ) $ 9.9 $ 5.6 Contingent consideration 75.4 42.3 1.2 Change in valuation allowance 20.7 (56.2 ) (5.6 ) Tax reserve for uncertain tax positions 8.7 3.2 1.7 Officer's compensation limitation 8.5 5.2 2.3 State income taxes, net of federal benefit 4.7 4.7 0.2 Acquisition costs 2.1 1.2 0.5 Base Erosion and Anti-Abuse Tax obligation 1.8 — 3.9 Stock-based compensation (11.0 ) (15.7 ) (3.5 ) Income (loss) taxed at foreign rates (0.6 ) 10.3 4.4 Other (1.2 ) 0.5 0.3 Actual provision for (benefit from) income taxes $ 24.0 $ 5.4 $ 11.0 (1) For the purpose of the reconciliation above, the U.S. federal statutory rate was 21% for all years presented. |
Schedule of Deferred Tax Assets and Liabilities | Our deferred tax assets and liabilities are as follows (in millions): December 31, December 31, 2020 2019 Deferred tax assets: Tax credit carryforwards $ 92.8 $ 76.4 Net operating loss carryforwards 46.2 35.5 Deferred revenue 42.9 — Acquired intangible assets 40.7 30.0 Operating lease liabilities 33.9 34.4 Accrued expenses 20.3 4.9 Stock-based compensation 14.6 9.2 Other accrued compensation 7.8 7.3 State taxes 1.6 1.5 Charitable contributions 0.8 0.1 Other 4.4 0.1 Total deferred tax assets $ 306.0 $ 199.4 Less: Valuation allowance (187.8 ) (141.6 ) Deferred tax assets, net of valuation allowance $ 118.2 $ 57.8 Deferred tax liabilities: Acquired intangible assets $ (160.2 ) $ (37.6 ) Convertible debt (33.4 ) (9.6 ) Right-of-use assets (32.9 ) (34.0 ) Goodwill (13.9 ) (7.1 ) Other (2.7 ) (2.3 ) Total deferred tax liabilities $ (243.1 ) $ (90.6 ) Net deferred taxes $ (124.9 ) $ (32.8 ) |
Summary of Net Operating Loss and Tax Credit Carryforwards | Net operating loss and tax credit carryforwards as of December 31, 2020 are as follows (in millions): Amount Expiration Years Net operating losses, federal $ 104.9 2027 - indefinite Net operating losses, state 21.6 2021 - 2040 Tax credits, federal 83.0 2031 - 2040 Tax credits, state 100.4 2026 - indefinite |
Schedule of Changes in Gross Unrecognized Tax Benefits | The following table reflects changes in the gross unrecognized tax benefits (in millions): |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Net Carrying Amount of Liability and Equity Components of Notes | The net carrying amount of the liability and equity components of the 2026 Notes and 2024 Notes as of December 31, 2020 were as follows (in millions): 2024 Notes 2026 Notes Total Liability component: Principal $ 690.0 $ 874.5 $ 1,564.5 Unamortized debt discount (83.8 ) (166.1 ) (249.9 ) Unamortized transaction costs (10.5 ) (14.2 ) (24.7 ) Net carrying amount $ 595.7 $ 694.2 $ 1,289.9 Equity component, net of transaction costs $ 114.9 $ 163.7 $ 278.7 The net carrying amount of the liability and equity components of the 2024 Notes as of December 31, 2019 were as follows (in millions): 2024 Notes Liability component: Principal $ 690.0 Unamortized debt discount (106.2 ) Unamortized transaction costs (13.3 ) Net carrying amount $ 570.5 Equity component, net of transaction costs $ 114.9 |
Schedule of Interest Expense Recognized Related to Notes | Interest expense recognized related to the 2026 Notes and 2024 Notes was as follows (in millions): Year Ended December 31, 2020 2019 Contractual interest expense $ 1.7 $ 0.9 Amortization of debt discount 23.5 11.8 Amortization of transaction costs 2.9 1.5 Total $ 28.1 $ 14.2 |
Other Current and Non-Current_2
Other Current and Non-Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in millions): December 31, December 31, 2020 2019 Accrued accounts payable $ 58.1 $ 41.4 Accrued compensation liability 61.7 52.5 Contingent consideration obligation 323.6 180.0 Accrued payable from acquisitions — 30.0 Value-added taxes payable 6.4 2.9 Other current liabilities 12.6 8.0 Total other current liabilities $ 462.4 $ 314.8 |
Schedule of Other Non-Current Liabilities | Other non-current liabilities consist of the following (in millions): December 31, December 31, 2020 2019 Contingent consideration obligation $ 213.6 $ 140.1 Accrued payable from acquisitions 136.0 — Deferred Consideration payable 24.4 — Uncertain tax positions, including interest and penalties 24.8 15.9 Other non-current liabilities 2.3 2.4 Total other non-current liabilities $ 401.1 $ 158.4 |
Stockholders' Equity and Othe_2
Stockholders' Equity and Other Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stock-Based Compensation Expense Related to Grants of Employee Stock Options, Restricted Stock Units (RSUs) and Performance and Market-Based Awards | We recorded stock-based compensation expense related to grants of employee stock options, RSUs and performance and market-based awards in our consolidated statements of operations as follows (in millions): Year Ended December 31, 2020 2019 2018 Cost of revenue $ 2.0 $ 1.5 $ 1.6 Research and development 73.4 47.0 42.1 Sales and marketing 14.7 11.3 8.5 General and administrative 32.5 21.7 16.0 Total stock-based compensation expense $ 122.6 $ 81.5 $ 68.2 |
Schedule of Share Based Compensation Stock Option Activity | The following table shows stock option activity for the year ended December 31, 2020 (in millions, except weighted-average exercise price and weighted-average 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, 2019 31.2 $ 3.24 $ 89.8 7.19 Granted 1.6 6.55 Forfeited, expired and cancelled — — Exercised (2.7 ) 2.87 Balance as of December 31, 2020 30.1 $ 3.46 $ 193.1 6.43 As of December 31, 2020 Exercisable options 20.8 $ 3.06 $ 142.1 6.00 Vested and expected to vest 30.1 $ 3.46 $ 193.1 6.43 |
Weighted-Average Grant Date Fair Value of Stock Options and Related Assumptions | The following table presents the weighted-average grant date fair value and related assumptions used to estimate the fair value of our stock options: Year Ended December 31, 2020 2019 2018 Expected term, in years 6 6 6 Risk-free interest rates 0.80 % 2.53 % 2.14 % Expected volatility 36 % 43 % 47 % Dividend yield — — — Weighted-average estimated fair value of stock options granted during the year $ 2.35 $ 2.41 $ 1.61 |
Schedule of Share Based Compensation Restricted Stock Units Award Activity | The following table shows a summary of RSU activity for the year ended December 31, 2020, which includes performance and market-based awards (in millions, except weighted-average grant date fair value): Outstanding RSUs Weighted- Average Grant Date Aggregate Intrinsic Fair Value Value of Shares (per share) Unvested RSUs Unvested as of December 31, 2019 40.2 $ 4.23 $ 246.0 Granted 46.3 8.63 Vested (17.5 ) 4.05 Forfeited (4.5 ) 4.52 Unvested as of December 31, 2020 64.5 $ 7.43 $ 636.0 |
Common Stock Reserved For Future Issuance | As of December 31, 2020, we had reserved shares of common stock for future issuance as follows (in millions): December 31, 2020 Stock options outstanding 30.1 RSUs outstanding 64.4 2011 Equity Incentive Plan 109.3 2011 Employee Stock Purchase Plan 120.6 Total 324.4 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2018 to December 31, 2020 (in millions): Foreign Currency Translation Unrealized Gains on Available- For-Sale Marketable Debt Securities Total Balance as of December 31, 2018 $ (118.4 ) $ — $ (118.4 ) Other comprehensive income (loss) before reclassifications (7.7 ) 0.2 (7.5 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss), net of tax (7.7 ) 0.2 (7.5 ) Balance as of December 31, 2019 $ (126.1 ) $ 0.2 $ (125.9 ) Other comprehensive income (loss) before reclassifications 75.3 (0.1 ) 75.2 Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss), net of tax 75.3 (0.1 ) 75.2 Balance as of December 31, 2020 $ (50.8 ) $ 0.1 $ (50.7 ) |
Net Income (Loss) Per Share o_2
Net Income (Loss) Per Share of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share of Common Stock | The following tables set forth the computation of basic and diluted net income (loss) per share of common stock (in millions, except per share data): Year Ended December 31, 2020 2019 2018 (1) Class A Class A Class A Basic Net income (loss) attributable to common stockholders $ (429.4 ) $ 41.9 $ 15.5 Weighted-average common shares outstanding 1,016.8 938.7 862.5 Net income (loss) per share attributable to common stockholders $ (0.42 ) $ 0.04 $ 0.02 Diluted Net income (loss) attributable to common stockholders – basic $ (429.4 ) $ 41.9 $ 15.5 Weighted-average common shares outstanding – basic 1,016.8 938.7 862.5 Weighted-average effect of dilutive securities: Stock options and employee stock purchase plan — 13.0 11.0 RSUs — 22.3 15.1 Performance-based RSUs — — 1.0 Weighted-average common shares outstanding – diluted 1,016.8 974.0 889.6 Net income (loss) per share attributable to common stockholders – diluted $ (0.42 ) $ 0.04 $ 0.02 (1) The net income (loss) per share calculation for the year ended December 31, 2018 is presented as if the one-for-one class conversion occurred as of the beginning of the period. |
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 millions): Year Ended December 31, 2020 2019 2018 Stock options and employee stock purchase plan 31.3 3.7 6.2 RSUs (including performance and market-based awards) 56.6 0.6 8.1 Total 87.9 4.3 14.3 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Contractual Royalty Payments to Licensors | We have entered into several contracts with licensors that contain minimum contractual commitments that may not be dependent on any deliverables. As of December 31, 2020, future minimum contractual royalty payments due to licensors for the licensed products are as follows (in millions): Year ending December 31: 2021 $ 11.3 2022 0.4 2023 10.4 Thereafter — Total $ 22.1 |
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, 2020, future minimum purchase commitments that have initial or remaining non-cancelable terms are as follows (in millions): Year ending December 31: 2021 $ 17.5 2022 6.7 2023 1.1 Thereafter — Total $ 25.3 |
Overview and Summary of Signi_4
Overview and Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2020USD ($) | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Initial offering period | December 2011 | |||
Operating segment | Segment | 1 | |||
Reportable segment | Segment | 1 | |||
Credit losses of short-term investments | $ 0 | |||
Operating lease, weighted average incremental borrowing rate | 4.20% | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |
Foreign currency transaction gain (loss) | $ (16,700,000) | $ 800,000 | $ (200,000) | |
Advertising expense | 583,100,000 | 377,200,000 | 157,700,000 | |
Accumulated deficit | $ (2,284,300,000) | $ (1,797,300,000) | $ 400,000 | |
Facebook [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Entity wide accounts receivables major customer percentage | 8.00% | 13.00% | ||
Google [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Entity wide accounts receivables major customer percentage | 34.00% | 33.00% | ||
Apple [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Entity wide accounts receivables major customer percentage | 35.00% | 34.00% | ||
Acquired Intangible Assets [Member] | ||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Impairment of intangible assets | $ 0 | $ 0 | $ 0 | |
Minimum [Member] | ||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Stipulate payment terms as specific number of days subsequent to end of the month | 30 days | |||
Estimated useful lives of intangible assets | 12 months | |||
Maximum [Member] | ||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Stipulate payment terms as specific number of days subsequent to end of the month | 60 days | |||
Estimated useful lives of intangible assets | 84 months | |||
Facebook [Member] | ||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Percentage of transaction fee recognized price | 70.00% |
Overview and Summary of Signi_5
Overview and Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
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 |
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 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Revenue Disaggregated by Platform (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 1,974.8 | $ 1,321.7 | $ 907.2 |
Mobile Online Game [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 1,596.6 | 981.2 | 590.5 |
Other Online game [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 70.6 | 66.1 | 80.4 |
Online Game [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 1,667.2 | 1,047.3 | 670.9 |
Mobile Advertising and Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 302.5 | 266.5 | 225.1 |
Web Advertising and Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 5.1 | 7.9 | 11.2 |
Advertising and Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 307.6 | $ 274.4 | $ 236.3 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Revenue disaggregated Based on Geographic Location (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 1,974.8 | $ 1,321.7 | $ 907.2 |
United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 1,211.7 | 826.6 | 594 |
All Other Countries [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 763.1 | $ 495.1 | $ 313.2 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |||
Estimated weighted average life of product | 10 months | 9 months | 9 months |
Discontinued online game revenue and income from operations | $ 2,000,000 | $ 900,000 | |
Changes in revenue from adjustments of prior period deferred revenue | $ 0 | ||
Discontinued game revenue from adjustments of prior period deferred revenue | $ 0 | ||
Online game revenue from changes in our estimated average playing period | $ 1,600,000 | ||
Impact on reported loss per share | $ 0.01 | ||
Current deferred revenue recognized | $ 433,000,000 | ||
Minimum [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Contract payment term related to advertising arrangements | 30 days | ||
Maximum [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Contract payment term related to advertising arrangements | 60 days |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Additional Information (Detail1) | Dec. 31, 2020 |
Maximum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Expected length of unsatisfaction of performance obligations | 1 year |
Marketable Securities - Summary
Marketable Securities - Summary of Available-for-Sale Short-Term and Long-Term Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 159.2 | $ 893.7 |
Gross Unrealized Gains | 0.1 | 0.1 |
Aggregate Fair Value | 159.3 | 893.8 |
Long-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2 | 175.2 |
Gross Unrealized Gains | 0.1 | |
Aggregate Fair Value | 2 | 175.3 |
Corporate Debt Securities [Member] | Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 152.7 | 814.9 |
Gross Unrealized Gains | 0.1 | 0.1 |
Aggregate Fair Value | 152.8 | 815 |
Corporate Debt Securities [Member] | Long-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2 | 108.2 |
Gross Unrealized Gains | 0.1 | |
Aggregate Fair Value | 2 | 108.3 |
U S Goverment And Goverment Agency Debt Securities [Member] | Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 25 | |
Aggregate Fair Value | 25 | |
U S Goverment And Goverment Agency Debt Securities [Member] | Long-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 67 | |
Aggregate Fair Value | 67 | |
Foreign Certificates of Deposit and Time Deposits [Member] | Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6.5 | 53.8 |
Aggregate Fair Value | $ 6.5 | $ 53.8 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net Gain (Loss) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Net gain (loss) recognized, mutual fund equity investment | $ 0.3 | $ 0.1 |
Maximum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale short-term investments period of contractual maturities | 1 year | |
Available-for-sale long-term investments period of contractual maturities | 2 years | |
Minimum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale long-term investments period of contractual maturities | 1 year |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - Fair Value Measurements Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | $ 1,220.1 | $ 1,269.2 |
Liabilities Fair Value Disclosure Recurring | 463.1 | 320.1 |
Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 463.1 | 320.1 |
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 | 611.1 | 0.6 |
Corporate Debt Securities [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 152.8 | 815 |
Corporate Debt Securities [Member] | Long-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 2 | 108.3 |
Corporate Debt Securities [Member] | Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 313 | 151.8 |
Foreign Certificates Of Deposit And Time [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 85.6 | 3.3 |
Foreign Certificates Of Deposit And Time [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 6.5 | 53.8 |
Mutual Fund | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 49.1 | 44.4 |
U.S. Government and Government Agency Debt Securities [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 25 | |
U.S. Government and Government Agency Debt Securities [Member] | Long-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 67 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 611.1 | 0.6 |
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 | 611.1 | 0.6 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 609 | 1,268.6 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 152.8 | 815 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | Long-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 2 | 108.3 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 313 | 151.8 |
Fair Value, Inputs, Level 2 [Member] | Foreign Certificates Of Deposit And Time [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 85.6 | 3.3 |
Fair Value, Inputs, Level 2 [Member] | Foreign Certificates Of Deposit And Time [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 6.5 | 53.8 |
Fair Value, Inputs, Level 2 [Member] | Mutual Fund | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 49.1 | 44.4 |
Fair Value, Inputs, Level 2 [Member] | U.S. Government and Government Agency Debt Securities [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 25 | |
Fair Value, Inputs, Level 2 [Member] | U.S. Government and Government Agency Debt Securities [Member] | Long-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 67 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 463.1 | 320.1 |
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 | $ 463.1 | $ 320.1 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Liabilities Measured on Recurring Basis (Detail) - Fair Value Measurements Recurring [Member] - Fair Value, Inputs, Level 3 [Member] | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balance as of December 31, 2019 | $ 320,100 |
Additions | 47,700 |
Fair value adjustments | 359,300 |
Payments | (189,900) |
Gram Games contingency resolution | (74,100) |
Balance as of December 31, 2020 | $ 463,100 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2021USD ($) | |
Gram Games [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration payable, total years | 3 years | |||
Contingent consideration obligation | $ 74.1 | $ 78.1 | ||
Business Combination, Contingent Consideration, Liability | $ 68.3 | |||
Gram Games [Member] | Discount Rate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration obligation, measurement input | 0.021 | |||
Gram Games [Member] | Scenario Forecast [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration obligation | $ 75 | |||
Gram Games [Member] | Research and Development Expense [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration obligation, expense recognized | $ 64.3 | 57.6 | $ 5.5 | |
Small Giant [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration obligation | 409.3 | 242 | ||
Business Combination, Contingent Consideration, Liability | 121.6 | |||
Small Giant [Member] | Research and Development Expense [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration obligation, expense recognized | 288.9 | 144 | ||
Rollic [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration obligation | 53.8 | $ 47.7 | ||
Rollic [Member] | Research and Development Expense [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration obligation, expense recognized | $ 6.1 |
Fair Value Measurements - Signi
Fair Value Measurements - Significant Unobservable Inputs Used in Measuring the Fair Value (Detail) | Dec. 31, 2020 |
Bookings Growth Rates [Member] | Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 5.3 |
Bookings Growth Rates [Member] | Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 54.7 |
Bookings Growth Rates [Member] | Weighted Average [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 11.2 |
Bookings Volatility [Member] | Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 27 |
Bookings Volatility [Member] | Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 54 |
Bookings Volatility [Member] | Weighted Average [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 33.3 |
Asset Volatility [Member] | Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 40 |
Asset Volatility [Member] | Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 60 |
Asset Volatility [Member] | Weighted Average [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 44.6 |
Net Cash Flows Margin [Member] | Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 24.6 |
Net Cash Flows Margin [Member] | Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 45.6 |
Net Cash Flows Margin [Member] | Weighted Average [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 41.4 |
Discount Rate [Member] | Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 10 |
Discount Rate [Member] | Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 30 |
Discount Rate [Member] | Weighted Average [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation, measurement input | 14.6 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | Jul. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Abstract] | ||||
Net proceeds from sale of buildings | $ 580.5 | |||
Other income (expense), net | $ 314.2 | $ (16.5) | $ 322.5 | $ 13.4 |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 106.9 | $ 90.5 |
Less: Accumulated depreciation | (67.6) | (64.7) |
Total property and equipment, net | 39.3 | 25.8 |
Computer Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 30.4 | 25 |
Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 35.1 | 33.9 |
Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 10.6 | 11.6 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 30.8 | $ 20 |
Property and Equipment, Net - P
Property and Equipment, Net - Property and Equipment, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 39.3 | $ 25.8 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 23.4 | 16.1 |
Turkey [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 7.7 | 0.7 |
India [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 4.3 | 5.3 |
United Kingdom [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 3 | 3.2 |
All Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 0.9 | $ 0.5 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)ft² | |
Lessor Lease Description [Line Items] | |
Operating Lease, weighted average remaining lease term | 8 years 10 months 24 days |
Q4 2017 Restructuring Plan [Member] | |
Lessor Lease Description [Line Items] | |
Lease term expiration | 2022-11 |
Terms of assignment | All terms under the original lease were assigned in full to the assignee, with the assignee becoming primarily liable to make rental payments directly to the landlord. Further, the assignee was required to provide the landlord a security deposit equal to twelve months rent to be used by the landlord in the event of the assignee’s non-performance. |
Estimated maximum exposure of the guarantee | $ 1.2 |
Leaseback Agreement [Member] | |
Lessor Lease Description [Line Items] | |
Lease back building | ft² | 185,000 |
Operating lease, term | 12 years |
Lease option to extend | true |
Lease option to extend term | 22 years |
Operating lease rent | $ 10.7 |
Leaseback Agreement [Member] | Maximum [Member] | |
Lessor Lease Description [Line Items] | |
Percentage of increase by an annual amount of rent | 3.25% |
Leaseback Agreement [Member] | First Option To Extend Lease [Member] | |
Lessor Lease Description [Line Items] | |
Lease option to extend term | 8 years |
Leaseback Agreement [Member] | Second Option To Extend Lease [Member] | |
Lessor Lease Description [Line Items] | |
Lease option to extend term | 8 years |
Leaseback Agreement [Member] | Third Option To Extend Lease [Member] | |
Lessor Lease Description [Line Items] | |
Lease option to extend term | 6 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease expense | $ 22.1 | $ 15.1 |
Variable lease expense | 7.9 | 4.6 |
Total lease expense | $ 30 | $ 19.7 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow and Non-Cash Information Related to Operating Leases Excluding Transition Adjustments (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Fixed operating lease payments | $ 22.9 | $ 16.7 |
Right-of-use assets obtained in exchange for operating lease liabilities (noncash) | $ 11.5 | $ 138.9 |
Leases - Schedule of Future Lea
Leases - Schedule of Future Lease Payments Related to Our Operating Leases (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 24 |
2022 | 20.3 |
2023 | 18.9 |
2024 | 16.4 |
2025 | 13 |
Thereafter | 77.9 |
Total lease payments | 170.5 |
Less: Imputed interest | (30) |
Total lease liability balance | 140.5 |
Total lease payments | $ 170.5 |
Leases - Schedule of Componen_2
Leases - Schedule of Components of Lease Income (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease income | $ 10.6 |
Variable lease income | 1.1 |
Total lease income | $ 11.7 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Millions | Oct. 01, 2020 | Jul. 02, 2020 | Jul. 01, 2020 | Jan. 02, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Business Acquisition [Line Items] | |||||||||
Intangible assets, weighted average useful life | 4 years 7 months 6 days | ||||||||
Total revenue | $ 1,974.8 | $ 1,321.7 | $ 907.2 | ||||||
Net income (loss) | (429.4) | 41.9 | 15.5 | ||||||
Common Class A [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Net income (loss) | $ (429.4) | 41.9 | $ 15.5 | ||||||
Minimum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Estimated useful lives of intangible assets | 12 months | ||||||||
Maximum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Estimated useful lives of intangible assets | 84 months | ||||||||
Rollic [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition effective date of acquisition | Oct. 1, 2020 | ||||||||
Percentage of acquired equity interest | 80.00% | 100.00% | |||||||
Business acquisition, cost of acquired entity | $ 228.2 | ||||||||
Percentage of potential consideration acquired | 20.00% | ||||||||
Percentage of step in period equity interest acquired | 20.00% | ||||||||
Percentage of acquired equity | 80.00% | 100.00% | |||||||
Business acquisition cash consideration payable step in period | 3 years | ||||||||
Business acquisition, cost of acquired entity upfront cash paid | $ 164.5 | ||||||||
Business acquisition, retained in escrow | $ 16 | ||||||||
Business acquisition, escrow period | 18 months | ||||||||
Consideration consideration | $ 47.7 | ||||||||
Business Combination Future Consideration Payments Description | future contingent consideration payments will be made in at least 50% in cash and the remainder, at the Company’s discretion, in cash and/or unregistered shares of Zynga’s Class A common stock (the “Zynga Stock”) based on the volume-weighted average closing price of the Zynga Stock during a 30 consecutive trading day period in advance of each payment | ||||||||
Intangible assets, weighted average useful life | 5 years 7 months 6 days | ||||||||
Business acquisition, retained in escrow | $ 16 | ||||||||
Contingent consideration obligation | $ 53.8 | $ 47.7 | |||||||
Rollic [Member] | Minimum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, future consideration payments percentage | 50.00% | ||||||||
Potential future payments maximum period | 2 years | ||||||||
Rollic [Member] | Maximum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Potential future payments maximum period | 4 years | ||||||||
Preliminary measurement period | 1 year | ||||||||
Peak [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition effective date of acquisition | Jul. 1, 2020 | ||||||||
Percentage of acquired equity interest | 100.00% | ||||||||
Business acquisition, cost of acquired entity | $ 2.1 | ||||||||
Percentage of acquired equity | 100.00% | ||||||||
Business acquisition, cost of acquired entity upfront cash paid | $ 802.3 | ||||||||
Business acquisition, retained in escrow | $ 120 | ||||||||
Business acquisition, escrow period | 18 months | ||||||||
Consideration consideration | $ 30.9 | ||||||||
Intangible assets, weighted average useful life | 5 years 4 months 24 days | ||||||||
Business acquisition, retained in escrow | 120 | ||||||||
Fair value of Zynga Stock Consideration issued | $ (1,137.7) | [1] | $ 1,100 | ||||||
Business combination cash consideration retention period | 66 months | ||||||||
Contingent consideration obligation | $ 23.8 | ||||||||
Total revenue | 110.7 | ||||||||
Net income (loss) | 176.4 | ||||||||
Fair value of Zynga Stock Consideration issued | $ 1,137.7 | [1] | $ (1,100) | ||||||
Peak [Member] | General and Administrative Expense [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Professional fees and transaction taxes | 7.1 | ||||||||
Peak [Member] | Noncompete Agreements | |||||||||
Business Acquisition [Line Items] | |||||||||
Estimated useful lives of intangible assets | 5 years | ||||||||
Peak [Member] | Common Class A [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition consideration by shares | 116,564,861 | ||||||||
Peak [Member] | Maximum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Preliminary measurement period | 1 year | ||||||||
Small Giant [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition effective date of acquisition | Jan. 2, 2019 | ||||||||
Percentage of acquired equity interest | 80.00% | 100.00% | |||||||
Business acquisition, cost of acquired entity | $ 717.9 | ||||||||
Percentage of potential consideration acquired | 20.00% | ||||||||
Percentage of step in period equity interest acquired | 20.00% | ||||||||
Percentage of acquired equity | 80.00% | 100.00% | |||||||
Business acquisition cash consideration payable step in period | 3 years | ||||||||
Business acquisition, cost of acquired entity upfront cash paid | $ 336 | ||||||||
Business acquisition, retained in escrow | $ 30 | ||||||||
Business acquisition, escrow period | 18 months | ||||||||
Consideration consideration | $ 98 | ||||||||
Intangible assets, weighted average useful life | 5 years 3 months 18 days | ||||||||
Business acquisition, retained in escrow | $ 30 | ||||||||
Fair value of Zynga Stock Consideration issued | [2] | (253.9) | |||||||
Contingent consideration obligation | $ 409.3 | $ 242 | |||||||
Fair value of Zynga Stock Consideration issued | [2] | $ 253.9 | |||||||
Small Giant [Member] | Noncompete Agreements | |||||||||
Business Acquisition [Line Items] | |||||||||
Estimated useful lives of intangible assets | 3 years | ||||||||
Small Giant [Member] | Common Class A [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition consideration by shares | 63,794,746 | ||||||||
[1] | The fair value of the Zynga Stock Consideration | ||||||||
[2] | The fair value of the Zynga Stock Consideration above is estimated based on the total shares issued of 63,794,746 and the closing stock price of Zynga’s Common A stock on January 2, 2019 of $3.98 per share. |
Acquisitions - Schedule of Acqu
Acquisitions - Schedule of Acquisition Price Allocation (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Oct. 01, 2020 | Jul. 02, 2020 | Jul. 01, 2020 | Dec. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | ||
Intangible assets: | |||||||||
Goodwill | $ 3,160.8 | $ 1,460.9 | $ 934.2 | ||||||
Rollic [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash | $ 13.5 | ||||||||
Accounts receivable | 15.7 | ||||||||
Prepaid expenses | 2.5 | ||||||||
Other current assets | 1.9 | ||||||||
Intangible assets: | |||||||||
Goodwill | 131.5 | ||||||||
Property and equipment | 0.3 | ||||||||
Right-of-use assets | 0.1 | ||||||||
Total assets acquired | 268 | ||||||||
Accounts payable | (9.1) | ||||||||
Income taxes payable | (1.9) | ||||||||
Operating lease liabilities | (0.1) | ||||||||
Other current liabilities | (7.9) | ||||||||
Deferred tax liabilities, net | (20.8) | ||||||||
Total liabilities | (39.8) | ||||||||
Total purchase price consideration | 228.2 | ||||||||
Non-current contingent consideration payable | (47.7) | ||||||||
Total cash consideration, including cash held in escrow | 180.5 | ||||||||
Rollic [Member] | Developed Technology, Weighted Average Useful Life of 6 years [Member] | |||||||||
Intangible assets: | |||||||||
Intangible assets, net acquired | 38.5 | ||||||||
Rollic [Member] | Third-Party Developer Relationships, Useful Life of 4 Years [Member] | |||||||||
Intangible assets: | |||||||||
Intangible assets, net acquired | 42 | ||||||||
Rollic [Member] | Trade Names, Useful Life of 7 Years [Member] | |||||||||
Intangible assets: | |||||||||
Intangible assets, net acquired | $ 22 | ||||||||
Peak [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash | $ 10.8 | ||||||||
Accounts receivable | 64.3 | ||||||||
Prepaid expenses | 1.7 | ||||||||
Other current assets | 12.6 | ||||||||
Intangible assets: | |||||||||
Goodwill | 1,513.7 | ||||||||
Property and equipment | 6.8 | ||||||||
Right-of-use assets | 9.7 | ||||||||
Other non-current assets | 0.5 | ||||||||
Total assets acquired | 2,234.7 | ||||||||
Accounts payable | (14.2) | ||||||||
Operating lease liabilities | (2.2) | ||||||||
Other current liabilities | (16.7) | ||||||||
Deferred tax liabilities, net | (108.4) | ||||||||
Non-current operating lease liabilities | (7.5) | ||||||||
Other non-current liabilities | (1.9) | ||||||||
Total liabilities | (150.9) | ||||||||
Total purchase price consideration | 2,083.8 | ||||||||
Fair value of Zynga Stock Consideration issued | (1,137.7) | [1] | $ 1,100 | ||||||
Non-current contingent consideration payable | $ (30.9) | ||||||||
Total cash consideration, including cash held in escrow | [2] | 946.1 | |||||||
Peak [Member] | Trade Names, Useful Life of 7 Years [Member] | |||||||||
Intangible assets: | |||||||||
Intangible assets, net acquired | 115 | ||||||||
Peak [Member] | Developed Technology, Useful Life of 5 Years [Member] | |||||||||
Intangible assets: | |||||||||
Intangible assets, net acquired | 495 | ||||||||
Peak [Member] | Domain Names Weighted Average Useful Life of 14 years [Member] | |||||||||
Intangible assets: | |||||||||
Intangible assets, net acquired | $ 4.6 | ||||||||
Small Giant [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash | $ 34.2 | ||||||||
Accounts receivable | 23 | ||||||||
Prepaid expenses | 2.5 | ||||||||
Intangible assets: | |||||||||
Goodwill | 531.2 | ||||||||
Property and equipment | 0.2 | ||||||||
Right-of-use assets | 0.9 | ||||||||
Other non-current assets | 0.1 | ||||||||
Total assets acquired | 779.1 | ||||||||
Accounts payable | (1.7) | ||||||||
Income taxes payable | (5.6) | ||||||||
Operating lease liabilities | (0.4) | ||||||||
Other current liabilities | (15.6) | ||||||||
Deferred tax liabilities, net | (37.4) | ||||||||
Total liabilities | (61.2) | ||||||||
Total purchase price consideration | 717.9 | ||||||||
Fair value of Zynga Stock Consideration issued | [3] | (253.9) | |||||||
Non-current contingent consideration payable | (98) | ||||||||
Total cash consideration, including cash held in escrow | 366 | ||||||||
Non-current operating lease liabilities | (0.5) | ||||||||
Small Giant [Member] | Trade Names, Useful Life of 7 Years [Member] | |||||||||
Intangible assets: | |||||||||
Intangible assets, net acquired | 32 | ||||||||
Small Giant [Member] | Developed Technology, Useful Life of 5 Years [Member] | |||||||||
Intangible assets: | |||||||||
Intangible assets, net acquired | $ 155 | ||||||||
[1] | The fair value of the Zynga Stock Consideration | ||||||||
[2] | The amount shown represents the cash paid at closing (which includes the Escrow Consideration) as well as present value of the Deferred Consideration, which was estimated as $23.8 million at the acquisition date using a discount rate commensurate with the term of the Deferred Consideration of 4.9%. | ||||||||
[3] | The fair value of the Zynga Stock Consideration above is estimated based on the total shares issued of 63,794,746 and the closing stock price of Zynga’s Common A stock on January 2, 2019 of $3.98 per share. |
Acquisitions - Schedule of Ac_2
Acquisitions - Schedule of Acquisition Price Allocation (Parenthetical) (Detail) $ / shares in Units, $ in Millions | Oct. 01, 2020 | Jul. 02, 2020 | Jul. 01, 2020USD ($)$ / sharesshares | Jan. 02, 2019$ / sharesshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | ||||||
Intangible assets, weighted average useful life | 4 years 7 months 6 days | |||||
Rollic [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, weighted average useful life | 5 years 7 months 6 days | |||||
Deferred Consideration | $ 53.8 | $ 47.7 | ||||
Rollic [Member] | Developed Technology, Weighted Average Useful Life of 6 years [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, weighted average useful life | 6 years | |||||
Rollic [Member] | Third-Party Developer Relationships, Useful Life of 4 Years [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, useful life | 4 years | |||||
Rollic [Member] | Trade Names, Useful Life of 7 Years [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, useful life | 7 years | |||||
Peak [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, weighted average useful life | 5 years 4 months 24 days | |||||
Deferred Consideration | $ 23.8 | |||||
Deferred consideration obligation, measurement input | 0.049 | |||||
Peak [Member] | Common Class A [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred by issue of shares | shares | 116,564,861 | |||||
Shares issued, price per share | $ / shares | $ 9.76 | |||||
Peak [Member] | Trade Names, Useful Life of 7 Years [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, useful life | 7 years | |||||
Peak [Member] | Developed Technology, Useful Life of 5 Years [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, useful life | 5 years | |||||
Peak [Member] | Domain Names Weighted Average Useful Life of 14 years [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, weighted average useful life | 14 years | |||||
Small Giant [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, weighted average useful life | 5 years 3 months 18 days | |||||
Deferred Consideration | $ 409.3 | $ 242 | ||||
Small Giant [Member] | Common Class A [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred by issue of shares | shares | 63,794,746 | |||||
Shares issued, price per share | $ / shares | $ 3.98 | |||||
Small Giant [Member] | Trade Names, Useful Life of 7 Years [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, useful life | 7 years | |||||
Small Giant [Member] | Developed Technology, Useful Life of 5 Years [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, useful life | 5 years |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro Forma Financial Information (Detail) - Peak [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||
Total revenue | $ 2,506 | $ 1,706.7 |
Net income (loss) | $ (270.3) | $ (178.4) |
Basic and diluted net income (loss) per share | $ (0.27) | $ (0.17) |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Schedule of Changes to Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill Roll Forward | ||
Goodwill, beginning balance | $ 1,460.9 | $ 934.2 |
Additions | 1,645.2 | 531.2 |
Foreign currency translation adjustments | 54.7 | (4.5) |
Goodwill, ending balance | $ 3,160.8 | $ 1,460.9 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Schedule of Changes to Goodwill (Parenthetical) (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill Roll Forward | |||
Accumulated impairment losses | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Acquisition-Related Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 1,231.1 | $ 487.7 |
Accumulated Amortization | (393) | (254.7) |
Net Book Value | 838.1 | 233 |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 972.2 | 415.5 |
Accumulated Amortization | (346.5) | (228) |
Net Book Value | 625.7 | 187.5 |
Trademarks, Branding and Domain Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 208.5 | 63.8 |
Accumulated Amortization | (35.5) | (18.6) |
Net Book Value | 173 | 45.2 |
Third Party Developer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 42 | |
Accumulated Amortization | (2.6) | |
Net Book Value | 39.4 | |
Noncompete Agreements | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 8.4 | 8.4 |
Accumulated Amortization | $ (8.4) | (8.1) |
Net Book Value | $ 0.3 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 4 years 7 months 6 days | ||
Trademarks, Branding and Domain Names [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 6.1 | $ 6.1 | |
Weighted-average remaining useful lives of acquired intangible assets | 6 years 4 months 24 days | ||
Other Intangible Assets [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization Expense | $ 130 | $ 67 | $ 29 |
Developed Technology [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 4 years 2 months 12 days | ||
Third Party Developer Relationships [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 3 years 9 months 18 days |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets, Net - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | |
2021 | $ 201.6 |
2022 | 191.8 |
2023 | 178.2 |
2024 | 138.9 |
2025 | 80 |
Thereafter | 41.5 |
Total | $ 832 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | ||||||
Deferred tax assets, net of valuation allowance | $ 118.2 | $ 57.8 | $ 118.2 | $ 57.8 | ||
Additional current federal and state tax expense | 9.4 | |||||
Effective income tax rate reconciliation, repatriation of foreign earnings | 139.1 | 87.1 | ||||
Unrecognized Tax Benefits | 146.4 | 171.4 | 146.4 | 171.4 | $ 164 | $ 160 |
Unrecognized tax benefits that might impact effective tax rate | 146.4 | 171.4 | 146.4 | 171.4 | ||
Tax benefits | 23.4 | 14.8 | (24) | (5.4) | (11) | |
Interest and penalties recorded | 0.3 | 0.2 | 0.2 | |||
Liability for uncertain tax positions | $ 1.4 | $ 1.4 | $ 1.1 | |||
Deferred Tax Assets [Member] | ||||||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | ||||||
Unrecognized Tax Benefits | 123 | 123 | ||||
Other Noncurrent Liabilities [Member] | ||||||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | ||||||
Unrecognized Tax Benefits | 23.4 | 23.4 | ||||
Intellectual Property [Member] | ||||||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | ||||||
Deferred tax assets, net of valuation allowance | $ 26.1 | $ 26.1 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (443.5) | $ 155.9 | $ 30 |
International | 38.1 | (108.6) | (3.5) |
Income (loss) before income taxes | $ (405.4) | $ 47.3 | $ 26.5 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for (Benefit from) Income Taxes (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current tax expense (benefit): | |||||
Federal | $ 9 | $ 11.6 | $ 3.9 | ||
State | 2.5 | 5.4 | 0.2 | ||
Foreign | 52.2 | 7.7 | 12 | ||
Total current tax expense (benefit) | 63.7 | 24.7 | 16.1 | ||
Deferred tax expense (benefit): | |||||
Federal | 4.5 | 0.1 | 1.4 | ||
State | 2.3 | 0.5 | 0.4 | ||
Foreign | (46.5) | (19.9) | (6.9) | ||
Total deferred tax expense (benefit) | (39.7) | (19.3) | (5.1) | ||
Provision for (benefit from) income taxes | $ (23.4) | $ (14.8) | $ 24 | $ 5.4 | $ 11 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Statutory Income Tax Provision (Benefit) to Effective Income Tax Provision (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||
Expected provision for (benefit from) income taxes at U.S. federal statutory rate | $ (85.1) | $ 9.9 | $ 5.6 | ||
Contingent consideration | 75.4 | 42.3 | 1.2 | ||
Change in valuation allowance | 20.7 | (56.2) | (5.6) | ||
Tax reserve for uncertain tax positions | 8.7 | 3.2 | 1.7 | ||
Officer's compensation limitation | 8.5 | 5.2 | 2.3 | ||
State income taxes, net of federal benefit | 4.7 | 4.7 | 0.2 | ||
Acquisition costs | 2.1 | 1.2 | 0.5 | ||
Base Erosion and Anti-Abuse Tax obligation | 1.8 | 3.9 | |||
Stock-based compensation | (11) | (15.7) | (3.5) | ||
Income (loss) taxed at foreign rates | (0.6) | 10.3 | 4.4 | ||
Other | (1.2) | 0.5 | 0.3 | ||
Provision for (benefit from) income taxes | $ (23.4) | $ (14.8) | $ 24 | $ 5.4 | $ 11 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Federal Statutory Income Tax Provision (Benefit) to Effective Income Tax Provision (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 21.00% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Tax credit carryforwards | $ 92.8 | $ 76.4 |
Net operating loss carryforwards | 46.2 | 35.5 |
Deferred revenue | 42.9 | |
Acquired intangible assets | 40.7 | 30 |
Operating lease liabilities | 33.9 | 34.4 |
Accrued expenses | 20.3 | 4.9 |
Stock-based compensation | 14.6 | 9.2 |
Other accrued compensation | 7.8 | 7.3 |
State taxes | 1.6 | 1.5 |
Charitable contributions | 0.8 | 0.1 |
Other | 4.4 | 0.1 |
Total deferred tax assets | 306 | 199.4 |
Less: Valuation allowance | (187.8) | (141.6) |
Deferred tax assets, net of valuation allowance | 118.2 | 57.8 |
Deferred tax liabilities: | ||
Acquired intangible assets | (160.2) | (37.6) |
Convertible debt | (33.4) | (9.6) |
Right-of-use assets | (32.9) | (34) |
Goodwill | (13.9) | (7.1) |
Other | (2.7) | (2.3) |
Total deferred tax liabilities | (243.1) | (90.6) |
Net deferred taxes | $ (124.9) | $ (32.8) |
Income Taxes - Summary of Net O
Income Taxes - Summary of Net Operating Loss and Tax Credit Carryforwards (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, amount | $ 21.6 |
Tax credit carryforward, amount | $ 100.4 |
State [Member] | Earliest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration year | 2021 |
Tax credit carryforward, expiration year | 2026 |
State [Member] | Latest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration year | 2040 |
Tax credit carryforward, expiration | indefinite |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, amount | $ 104.9 |
Tax credit carryforward, amount | $ 83 |
Federal [Member] | Earliest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration year | 2027 |
Tax credit carryforward, expiration year | 2031 |
Federal [Member] | Latest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration year | indefinite |
Tax credit carryforward, expiration year | 2040 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning balance | $ 171.4 | $ 164 | $ 160 |
Additions based on tax positions related to current | 4.8 | 5.8 | 4.4 |
Additions for tax positions of prior years | 1.9 | 0.8 | |
Subtractions for tax positions of prior years | (28) | ||
Reductions for tax positions of prior years | (1.8) | (0.3) | (1.2) |
Unrecognized tax benefits, ending balance | $ 146.4 | $ 171.4 | $ 164 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ / shares in Units, shares in Millions, $ in Millions | Dec. 17, 2020USD ($)d$ / shares | Jun. 14, 2019USD ($)d$ / shares | Dec. 31, 2020USD ($)$ / shares | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020USD ($)$ / shares | Sep. 30, 2020 | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares |
Line Of Credit Facility [Line Items] | |||||||||||
Aggregate principal amount | $ 1,564.5 | $ 1,564.5 | $ 1,564.5 | ||||||||
Proceeds from the issuance of notes | 856.7 | $ 672.2 | $ 99.1 | ||||||||
Debt instrument carrying amount of equity component conversion option | $ 278.7 | 278.7 | $ 278.7 | ||||||||
Anti-dilutive securities underlying conversion option | shares | 87.9 | 4.3 | 14.3 | ||||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Credit facility expiration period | 3 years | ||||||||||
Initial aggregate principal borrowing capacity amount | $ 425 | 425 | $ 425 | $ 200 | |||||||
Debt instrument interest rate, description | Under the 2020 Credit Agreement, at the Company’s option, revolving loans accrue interest at a per annum rate based on either (i) the base rate plus a margin ranging from 0.50% to 1.00%, determined based on the Company’s consolidated leverage ratio for the four most recent fiscal quarters (the “Consolidated Leverage Ratio”) or (ii) the LIBOR rate (for interest periods of one, two, three or six months) plus a margin ranging from 1.50% to 2.00%, determined based on the Company’s Consolidated Leverage Ratio (“LIBOR Loan”). The base rate is defined as the highest of (i) the federal funds rate, plus 0.50%, (ii) Bank of America, N.A.’s prime rate and (iii) the LIBOR rate for a one-month interest period plus 1.00%. | ||||||||||
Debt instrument commitment fee, description | The Company is also obligated to pay an ongoing commitment fee on undrawn amounts at a rate ranging from 0.25% to 0.35%, determined based on the Company’s Consolidated Leverage Ratio | ||||||||||
Line of credit facility amount outstanding | $ 0 | ||||||||||
Debt issuance cost | $ 1.4 | $ 1.4 | $ 1.4 | ||||||||
Debt capitalized, amortize period | 3 years | 3 years | 3 years | ||||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | Minimum [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Payment for commitment fee, percentage | 0.25% | ||||||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | Maximum [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Payment for commitment fee, percentage | 0.35% | ||||||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | Base Rate [Member] | Minimum [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Debt instrument interest rate | 0.50% | 0.50% | 0.50% | 0.50% | |||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | Base Rate [Member] | Maximum [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Debt instrument interest rate | 1.00% | 1.00% | 1.00% | 1.00% | |||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | LIBOR Rate [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Debt instrument interest rate | 1.00% | ||||||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | LIBOR Rate [Member] | Minimum [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Debt instrument interest rate | 1.50% | ||||||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | LIBOR Rate [Member] | Maximum [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Debt instrument interest rate | 2.00% | ||||||||||
Bank of America, N.A. [Member] | Credit Agreement [Member] | Federal Funds Rate [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Debt instrument interest rate | 0.50% | ||||||||||
Common Class A [Member] | Convertible Senior Notes And Capped Call Transactions | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Anti-dilutive securities underlying conversion option | shares | 83.1 | ||||||||||
Common Class A [Member] | Convertible Senior Notes Due 2026 [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Anti-dilutive securities underlying conversion option | shares | 66.9 | ||||||||||
Convertible Senior Notes Due 2026 [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Aggregate principal amount | $ 874.5 | ||||||||||
Debt instrument, interest rate | 0.00% | ||||||||||
Additional aggregate principal amount | $ 112.5 | ||||||||||
Proceeds from the issuance of notes | $ 856.8 | ||||||||||
Debt instrument maturity date | Dec. 15, 2026 | ||||||||||
Debt instrument payment terms | The 2026 Notes and 2024 Notes mature on December 15, 2026 and June 1, 2024, respectively, unless earlier converted, redeemed or repurchased in accordance with their terms respectively prior to the maturity date. The 2026 Notes do not bear regular interest, and the principal amount does not accrete, while interest is payable semiannually on the 2024 Notes in arrears on June 1 and December 1 of each year. | ||||||||||
Debt repurchase price percentage | 100.00% | ||||||||||
Debt instrument initial carrying amount | $ 707.4 | ||||||||||
Interest rate used to calculate the present value of the cash flows | 3.50% | ||||||||||
Debt instrument carrying amount of equity component conversion option | $ 167.1 | ||||||||||
Contractual term | 6 years | ||||||||||
Transaction costs attributable to the liability component | $ 14.3 | ||||||||||
Transaction costs attributable to the equity component | $ 3.4 | ||||||||||
Convertible Senior Notes Due 2026 [Member] | Capped Call Transactions [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Initial strike price | $ / shares | 13.07 | 13.07 | 13.07 | ||||||||
Initial cap price | $ / shares | 17.42 | 17.42 | 17.42 | ||||||||
Cost incurred for Capped Calls | $ 63 | ||||||||||
Convertible Senior Notes Due 2026 [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Debt instrument estimated fair value | $ 914 | $ 914 | $ 914 | ||||||||
Convertible Senior Notes Due 2026 [Member] | Common Class A [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Initial conversion rate of common stock per $1,000 principal amount | 76.5404 | ||||||||||
Initial conversion price per share of common stock | $ / shares | $ 13.07 | ||||||||||
Debt instrument threshold trading days to trigger conversion feature | d | 20 | ||||||||||
Debt instrument threshold consecutive trading days to trigger conversion feature | d | 30 | ||||||||||
Debt instrument, minimum percentage of common stock price to determine eligibility of conversion | 130.00% | ||||||||||
Consecutive business trading period when trading price meets required criteria as a condition for conversion of debt | 5 days | ||||||||||
Trading price percentage of product of last reported sales price as a condition for conversion of debt | 98.00% | ||||||||||
Debt instrument redemption start date | Dec. 20, 2023 | ||||||||||
Debt instrument redemption price percentage | 100.00% | ||||||||||
Convertible Senior Notes Due 2026 [Member] | Common Class A [Member] | Capped Call Transactions [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Capped calls economic dilutive potential common stock shares | shares | 66.9 | ||||||||||
Convertible Senior Notes Due 2024 [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Aggregate principal amount | $ 690 | $ 690 | |||||||||
Debt instrument, interest rate | 0.25% | ||||||||||
Additional aggregate principal amount | $ 90 | ||||||||||
Proceeds from the issuance of notes | $ 672.2 | ||||||||||
Debt instrument maturity date | Jun. 1, 2024 | ||||||||||
Debt instrument payment terms | The 2026 Notes and 2024 Notes mature on December 15, 2026 and June 1, 2024, respectively, unless earlier converted, redeemed or repurchased in accordance with their terms respectively prior to the maturity date. The 2026 Notes do not bear regular interest, and the principal amount does not accrete, while interest is payable semiannually on the 2024 Notes in arrears on June 1 and December 1 of each year. | ||||||||||
Debt repurchase price percentage | 100.00% | ||||||||||
Debt instrument initial carrying amount | $ 572 | ||||||||||
Interest rate used to calculate the present value of the cash flows | 4.10% | ||||||||||
Debt instrument carrying amount of equity component conversion option | $ 118 | $ 114.9 | |||||||||
Contractual term | 5 years | ||||||||||
Transaction costs attributable to the liability component | $ 14.8 | ||||||||||
Transaction costs attributable to the equity component | $ 3.1 | ||||||||||
Debt instrument, if-converted value | $ 819.8 | ||||||||||
Debt Instrument, if-converted value in excess of principal amount | $ 129.8 | ||||||||||
Convertible Senior Notes Due 2024 [Member] | Capped Call Transactions [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Initial strike price | $ / shares | 8.31 | 8.31 | 8.31 | ||||||||
Initial cap price | $ / shares | 12.54 | 12.54 | 12.54 | ||||||||
Cost incurred for Capped Calls | $ 73.8 | ||||||||||
Convertible Senior Notes Due 2024 [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Debt instrument estimated fair value | $ 916.7 | $ 916.7 | $ 916.7 | ||||||||
Convertible Senior Notes Due 2024 [Member] | Common Class A [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Initial conversion rate of common stock per $1,000 principal amount | 120.3695 | ||||||||||
Initial conversion price per share of common stock | $ / shares | $ 8.31 | ||||||||||
Debt instrument threshold trading days to trigger conversion feature | d | 20 | ||||||||||
Debt instrument threshold consecutive trading days to trigger conversion feature | d | 30 | ||||||||||
Debt instrument, minimum percentage of common stock price to determine eligibility of conversion | 130.00% | ||||||||||
Consecutive business trading period when trading price meets required criteria as a condition for conversion of debt | 5 days | ||||||||||
Trading price percentage of product of last reported sales price as a condition for conversion of debt | 98.00% | ||||||||||
Debt instrument redemption start date | Jun. 5, 2022 | ||||||||||
Debt instrument redemption price percentage | 100.00% | ||||||||||
Debt instrument, closing price of common stock | $ / shares | $ 9.87 | ||||||||||
Convertible Senior Notes Due 2024 [Member] | Common Class A [Member] | Capped Call Transactions [Member] | |||||||||||
Line Of Credit Facility [Line Items] | |||||||||||
Capped calls economic dilutive potential common stock shares | shares | 83.1 |
Debt - Schedule of Net Carrying
Debt - Schedule of Net Carrying Amount of Liability and Equity Components of Notes (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 14, 2019 |
Liability component: | |||
Principal | $ 1,564.5 | ||
Unamortized debt discount | (249.9) | ||
Unamortized transaction costs | (24.7) | ||
Net carrying amount | 1,289.9 | ||
Equity component, net of transaction costs | 278.7 | ||
Convertible Senior Notes Due 2024 [Member] | |||
Liability component: | |||
Principal | $ 690 | $ 690 | |
Unamortized debt discount | (106.2) | ||
Unamortized transaction costs | (13.3) | ||
Net carrying amount | 570.5 | ||
Equity component, net of transaction costs | $ 114.9 | $ 118 | |
Convertible Senior Notes Due 2024 [Member] | |||
Liability component: | |||
Principal | 690 | ||
Unamortized debt discount | (83.8) | ||
Unamortized transaction costs | (10.5) | ||
Net carrying amount | 595.7 | ||
Equity component, net of transaction costs | 114.9 | ||
Convertible Senior Notes Due 2026 [Member] | |||
Liability component: | |||
Principal | 874.5 | ||
Unamortized debt discount | (166.1) | ||
Unamortized transaction costs | (14.2) | ||
Net carrying amount | 694.2 | ||
Equity component, net of transaction costs | $ 163.7 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense Recognized Related to Notes (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Contractual interest expense | $ 1.7 | $ 0.9 |
Amortization of debt discount | 23.5 | 11.8 |
Amortization of transaction costs | 2.9 | 1.5 |
Total | $ 28.1 | $ 14.2 |
Other Current and Non-Current_3
Other Current and Non-Current Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Current [Abstract] | ||
Accrued accounts payable | $ 58.1 | $ 41.4 |
Accrued compensation liability | 61.7 | 52.5 |
Contingent consideration obligation | 323.6 | 180 |
Accrued payable from acquisitions | 30 | |
Value-added taxes payable | 6.4 | 2.9 |
Other current liabilities | 12.6 | 8 |
Total other current liabilities | $ 462.4 | $ 314.8 |
Other Current and Non-Current_4
Other Current and Non-Current Liabilities - Schedule of Other Non-Current Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Noncurrent [Abstract] | ||
Contingent consideration obligation | $ 213.6 | $ 140.1 |
Accrued payable from acquisitions | 136 | |
Deferred Consideration payable | 24.4 | |
Uncertain tax positions, including interest and penalties | 24.8 | 15.9 |
Other non-current liabilities | 2.3 | 2.4 |
Total other non-current liabilities | $ 401.1 | $ 158.4 |
Stockholders' Equity and Othe_3
Stockholders' Equity and Other Employee Benefits - Additional Information (Detail) | Mar. 15, 2020USD ($)$ / shares | May 02, 2018Voting_Rightsshares | Nov. 30, 2011shares | Dec. 31, 2020USD ($)Voting_Rightsshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Apr. 30, 2018USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Conversion of stock description | Our three classes of common stock are Class A, Class B and Class C common stock. On May 2, 2018, our founder, Mark Pincus, elected to convert certain outstanding shares of Class B common stock and all outstanding shares of Class C common stock controlled by Mr. Pincus and an affiliated investment entity into an equivalent number of shares of Class A common stock. As a result of Mr. Pincus’ conversion, the remaining shares of Class B common stock represented less than 10% of the total voting power of all Zynga stockholders and, accordingly, each remaining outstanding share of Class B common stock automatically converted into one share of Class A common stock. Each Zynga stockholder now has one vote per share on all matters subject to stockholder vote. Following the conversion, no shares of Class B or Class C common stock are outstanding. | Conversion. Our Class A common stock is not convertible into any other shares of our capital stock. The Class B and Class C common stock converted into Class A common stock may not be reissued. | |||||
Voting rights per share | Voting_Rights | 1 | ||||||
Common stock, voting rights | Voting Rights. Holders of our Class A common stock are entitled to one vote per share. | ||||||
Repurchase of common stock | $ 91,600,000 | ||||||
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 or such lesser number of shares that may be determined by the Company’s Board of Directors. During the year ended December 31, 2020, there was no increase in the Class A common stock reserved for future issuance under the 2011 Plan. | ||||||
Aggregated intrinsic value of stock options exercised | $ 12,400,000 | $ 44,900,000 | 6,300,000 | ||||
Grant date fair value of options vested | 13,100,000 | 9,500,000 | 6,000,000 | ||||
Total unrecognized stock based compensation expense | 15,500,000 | ||||||
Shares earned | $ 700,000 | ||||||
Total stock-based expense | $ 122,600,000 | $ 81,500,000 | $ 68,200,000 | ||||
Expected volatility | 36.00% | 43.00% | 47.00% | ||||
Risk-free interest rates | 0.80% | 2.53% | 2.14% | ||||
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 | $ 6,500,000 | $ 5,800,000 | $ 4,700,000 | ||||
Zynga Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Contractual term | 10 years | ||||||
Weighted average recognition period | 1 year 2 months 12 days | ||||||
RSUs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation awards vesting period | 4 years | ||||||
Weighted average recognition period | 3 years 3 months 18 days | ||||||
Total unrecognized stock based compensation expense, restricted shares | $ 426,400,000 | ||||||
Performance Based RSUs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Conversion of stock description | The number of shares earned ranged from 0% to 120% of the target number of shares granted and were dependent upon on actual operating cash flows for the year ended December 31, 2020 relative to pre-established thresholds. The target number of shares granted totaled 0.6 million and based on actual operating cash flows for the year ended December 31, 2020, the highest threshold was achieved resulting in the actual shares earned of 0.7 million. The shares earned will vest over a period of four years following the grant date, with 25% vesting on the one year anniversary of the grant date and the remaining quarterly thereafter, subject to continued service by the executives. | ||||||
Option grants vesting percentage | 25.00% | ||||||
Number of shares across all executives totaled | $ 600,000 | ||||||
Performance-Based Awards [Member] | Certain employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total stock-based expense | $ 2,800,000 | $ 1,200,000 | $ 1,800,000 | ||||
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. | ||||||
Market Condition RSUs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total stock-based expense | $ 8,000,000 | ||||||
Expected volatility | 100.00% | ||||||
Two-Year Market RSUs [Member] | Long Term Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares across all executives totaled | $ 2,200,000 | ||||||
Estimated per unit grant date fair value | $ / shares | $ 7.37 | ||||||
Three-Year Market RSUs [Member] | Long Term Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares across all executives totaled | $ 4,400,000 | ||||||
Estimated per unit grant date fair value | $ / shares | $ 7.41 | ||||||
Maximum [Member] | Long Term Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Risk-free interest rates | 0.60% | ||||||
Maximum [Member] | Zynga Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
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 | ||||||
Maximum [Member] | Performance Based RSUs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of awards earned percentage | 120.00% | ||||||
Maximum [Member] | Market Condition RSUs [Member] | Long-term Investments [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of awards earned percentage | 150.00% | ||||||
Minimum [Member] | Long Term Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Risk-free interest rates | 0.50% | ||||||
Minimum [Member] | Zynga Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
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 | ||||||
Minimum [Member] | Performance Based RSUs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of awards earned percentage | 0.00% | ||||||
Minimum [Member] | Market Condition RSUs [Member] | Long-term Investments [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of awards earned percentage | 0.00% | ||||||
2018 Share Repurchase Program [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Repurchase of common stock | $ 173,800,000 | ||||||
Repurchase program expiration date | Apr. 30, 2022 | ||||||
Common Class B [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum percentage of common stock outstanding required for conversion | 10.00% | ||||||
Common stock, shares outstanding | shares | 0 | ||||||
Common Class A [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares issued upon conversion of common stock | shares | 1 | ||||||
Voting rights per share | Voting_Rights | 1 | ||||||
Common stock, shares outstanding | shares | 1,081,600,000 | 950,000,000 | |||||
Annual increase percentage of common stock shares outstanding | 4.00% | ||||||
Common stock capital shares reserved for future issuance increases | shares | 0 | ||||||
Common Class A [Member] | 2011 ESPP [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock capital shares reserved for future issuance increases | shares | 25,000,000 | 0 | |||||
Percentage of capital stock outstanding | 2.00% | ||||||
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 | $ 3,800,000 | ||||||
Stock-based compensation expense related to 2011 ESPP | $ 3,600,000 | ||||||
Common Class A [Member] | 2018 Share Repurchase Program [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 200,000,000 | ||||||
Common Class C [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, shares outstanding | shares | 0 |
Stockholders' Equity and Othe_4
Stockholders' Equity and Other Employee Benefits - Stock-Based Compensation Expense Related to Grants of Employee Stock Options, Restricted Stock Units (RSUs) and Performance and Market-Based Awards (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 122.6 | $ 81.5 | $ 68.2 |
Cost of Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 2 | 1.5 | 1.6 |
Research and Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 73.4 | 47 | 42.1 |
Sales and Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 14.7 | 11.3 | 8.5 |
General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 32.5 | $ 21.7 | $ 16 |
Stockholders' Equity and Othe_5
Stockholders' Equity and Other Employee Benefits - Schedule of Share Based Compensation Stock Option Activity (Detail) - Zynga Stock Options [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Options Outstanding, Beginning balance | 31.2 | |
Stock Options, Granted | 1.6 | |
Stock Options, Exercised | (2.7) | |
Stock Options Outstanding, Ending balance | 30.1 | 31.2 |
Stock Options, Exercisable options | 20.8 | |
Stock Options, Vested and expected to vest | 30.1 | |
Outstanding Options, Weighted Average Exercise Price, Beginning Balance | $ 3.24 | |
Weighted Average Exercise Price, Granted | 6.55 | |
Weighted Average Exercise Price, Exercised | 2.87 | |
Outstanding Options, Weighted Average Exercise Price, Ending Balance | 3.46 | $ 3.24 |
Weighted-Average Exercise Price, Exercisable options | 3.06 | |
Weighted-Average Exercise Price, Vested and expected to vest | $ 3.46 | |
Outstanding Options, Aggregate Intrinsic Value of Stock Options Outstanding | $ 193.1 | $ 89.8 |
Aggregate Intrinsic Value of Stock Options Outstanding, Exercisable options | 142.1 | |
Aggregate Intrinsic Value of Stock Options, Vested and expected to vest | $ 193.1 | |
Outstanding Options, Weighted Average Contractual Term (in years) | 6 years 5 months 4 days | 7 years 2 months 8 days |
Weighted-Average Contractual Term (in years), Exercisable options | 6 years | |
Weighted-Average Contractual Term (in years), Vested and expected to vest | 6 years 5 months 4 days |
Stockholders' Equity and Othe_6
Stockholders' Equity and Other Employee Benefits - Weighted-Average Grant Date Fair Value of Stock Options and Related Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Expected term, in years | 6 years | 6 years | 6 years |
Risk-free interest rates | 0.80% | 2.53% | 2.14% |
Expected volatility | 36.00% | 43.00% | 47.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average estimated fair value of stock options granted during the year | $ 2.35 | $ 2.41 | $ 1.61 |
Stockholders' Equity and Othe_7
Stockholders' Equity and Other Employee Benefits - Schedule of Share Based Compensation Restricted Stock Units Award Activity (Detail) - RSUs [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested Outstanding Shares, Beginning balance | 40.2 | |
Unvested Shares, Granted | 46.3 | |
Unvested Shares, Vested | (17.5) | |
Unvested Shares, Forfeited | (4.5) | |
Unvested Outstanding Shares, Ending balance | 64.5 | |
Unvested Weighted Average Grant Date Fair Value, Beginning balance | $ 4.23 | |
Unvested Weighted Average Grant Date Fair Value, Granted | 8.63 | |
Unvested Weighted Average Grant Date Fair Value, Vested | 4.05 | |
Unvested Weighted Average Grant Date Fair Value, Forfeited | 4.52 | |
Unvested Weighted Average Grant Date Fair Value, Ending balance | $ 7.43 | |
Unvested, Aggregate Intrinsic Value of Unvested RSU | $ 636 | $ 246 |
Stockholders' Equity and Othe_8
Stockholders' Equity and Other Employee Benefits - Common Stock Reserved for Future Issuance (Detail) shares in Millions | Dec. 31, 2020shares |
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 | 324.4 |
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 | 109.3 |
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 | 120.6 |
Zynga Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance | 30.1 |
RSUs [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 | 64.4 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance, Value | $ 1,975.4 | $ 1,596.6 | $ 1,641.3 |
Other comprehensive income (loss), net of tax | 75.2 | (7.5) | (25) |
Ending balance, Value | 2,941.5 | 1,975.4 | 1,596.6 |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance, Value | (126.1) | (118.4) | |
Other comprehensive income (loss) before reclassifications, net of tax | 75.3 | (7.7) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | |
Other comprehensive income (loss), net of tax | 75.3 | (7.7) | |
Ending balance, Value | (50.8) | (126.1) | (118.4) |
Unrealized Gains (Losses) on Available-For-Sale Marketable Debt Securities [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance, Value | 0.2 | 0 | |
Other comprehensive income (loss) before reclassifications, net of tax | (0.1) | 0.2 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | |
Other comprehensive income (loss), net of tax | (0.1) | 0.2 | |
Ending balance, Value | 0.1 | 0.2 | 0 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance, Value | (125.9) | (118.4) | (93.4) |
Other comprehensive income (loss) before reclassifications, net of tax | 75.2 | (7.5) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | |
Other comprehensive income (loss), net of tax | 75.2 | (7.5) | (25) |
Ending balance, Value | $ (50.7) | $ (125.9) | $ (118.4) |
Net Income (Loss) Per Share o_3
Net Income (Loss) Per Share of Common Stock - Additional Information (Detail) - shares | May 02, 2018 | Dec. 31, 2020 |
Earnings Per Share Diluted [Line Items] | ||
Conversion of stock description | Our three classes of common stock are Class A, Class B and Class C common stock. On May 2, 2018, our founder, Mark Pincus, elected to convert certain outstanding shares of Class B common stock and all outstanding shares of Class C common stock controlled by Mr. Pincus and an affiliated investment entity into an equivalent number of shares of Class A common stock. As a result of Mr. Pincus’ conversion, the remaining shares of Class B common stock represented less than 10% of the total voting power of all Zynga stockholders and, accordingly, each remaining outstanding share of Class B common stock automatically converted into one share of Class A common stock. Each Zynga stockholder now has one vote per share on all matters subject to stockholder vote. Following the conversion, no shares of Class B or Class C common stock are outstanding. | Conversion. Our Class A common stock is not convertible into any other shares of our capital stock. The Class B and Class C common stock converted into Class A common stock may not be reissued. |
Class A,B, and C Common Stock [Member] | ||
Earnings Per Share Diluted [Line Items] | ||
Conversion of stock description | As noted previously, our founder, Mark Pincus, elected to convert certain outstanding shares of Class B common stock and all outstanding shares of Class C common stock controlled by Mr. Pincus and an affiliated investment entity into an equivalent number of shares of Class A common stock in May 2018. Following the conversion, no shares of Class B or Class C common stock are outstanding and accordingly, the Company calculated basic and dilutive net income (loss) per share under a single-class method | |
Common Class B [Member] | ||
Earnings Per Share Diluted [Line Items] | ||
Common stock, shares outstanding | 0 | |
Common Class C [Member] | ||
Earnings Per Share Diluted [Line Items] | ||
Common stock, shares outstanding | 0 |
Net Income (Loss) Per Share o_4
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, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic | |||
Net income (loss) attributable to common stockholders – basic | $ (429.4) | $ 41.9 | $ 15.5 |
Weighted-average common shares outstanding – basic | 1,016,800 | 938,700 | 862,500 |
Net income (loss) per share attributable to common stockholders | $ (0.42) | $ 0.04 | $ 0.02 |
Diluted | |||
Weighted-average common shares outstanding – basic | 1,016,800 | 938,700 | 862,500 |
Weighted-average common shares outstanding – diluted | 1,016,800 | 974,000 | 889,600 |
Net income (loss) per share attributable to common stockholders – diluted | $ (0.42) | $ 0.04 | $ 0.02 |
Common Class A [Member] | |||
Basic | |||
Net income (loss) attributable to common stockholders – basic | $ (429.4) | $ 41.9 | $ 15.5 |
Weighted-average common shares outstanding – basic | 1,016,800,000 | 938,700,000 | 862,500,000 |
Net income (loss) per share attributable to common stockholders | $ (0.42) | $ 0.04 | $ 0.02 |
Diluted | |||
Net income (loss) attributable to common stockholders – basic | $ (429.4) | $ 41.9 | $ 15.5 |
Weighted-average common shares outstanding – basic | 1,016,800,000 | 938,700,000 | 862,500,000 |
Weighted-average common shares outstanding – diluted | 1,016,800,000 | 974,000,000 | 889,600,000 |
Net income (loss) per share attributable to common stockholders – diluted | $ (420,000) | $ 40,000 | $ 20,000 |
Common Class A [Member] | Stock Options and Employee Stock Purchase Plan [Member] | |||
Diluted | |||
Weighted-average effect of dilutive securities | 13,000,000 | 11,000,000 | |
Weighted-average effect of dilutive securities | 13,000,000 | 11,000,000 | |
Common Class A [Member] | RSUs [Member] | |||
Diluted | |||
Weighted-average effect of dilutive securities | 22,300,000 | 15,100,000 | |
Weighted-average effect of dilutive securities | 22,300,000 | 15,100,000 | |
Common Class A [Member] | Performance Based Restricted Stock Units (RSUs) [Member] | |||
Diluted | |||
Weighted-average effect of dilutive securities | 1,000,000 | ||
Weighted-average effect of dilutive securities | 1,000,000 |
Net Income (Loss) Per Share o_5
Net Income (Loss) Per Share of Common Stock - Shares Excluded from Calculation of Diluted Net Income (Loss) per Share (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 87.9 | 4.3 | 14.3 |
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 | 31.3 | 3.7 | 6.2 |
RSUs [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 56.6 | 0.6 | 8.1 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Contractual Royalty Payments to Licensors (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2021 | $ 11.3 |
2022 | 0.4 |
2023 | 10.4 |
Total | $ 22.1 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Purchase Commitments (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2021 | $ 17.5 |
2022 | 6.7 |
2023 | 1.1 |
Total | $ 25.3 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments And Contingencies Disclosure [Abstract] | ||
Uncertain tax positions liability, including interest and penalties | $ 24.8 | $ 15.9 |
Financial Statement Schedules_2
Financial Statement Schedules - Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation And Qualifying Accounts [Abstract] | |||
Balance at Beginning of Year(1) | $ 0.5 | $ 0.4 | $ 2.7 |
Charges to Expense | $ 0.1 | 0.1 | 3.2 |
Write-Offs, Net of Recoveries | (2.8) | (0.5) | |
Balance at End of Year | $ 0.5 | $ 0.4 |
Financial Statement Schedules_3
Financial Statement Schedules - Schedule II - Valuation and Qualifying Accounts (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Valuation And Qualifying Accounts [Abstract] | |
Credit Loss Expense | $ 0.4 |