Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Sohu.com Ltd |
Entity Central Index Key | 0001734107 |
Entity Current Reporting Status | Yes |
Current Fiscal Year End Date | --12-31 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Address, Address Line One | Level 18, Sohu.com Media Plaza Block 3, No. 2 Kexueyuan South Road, Haidian District |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100190 |
Document Accounting Standard | U.S. GAAP |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Well-known Seasoned Issuer | No |
Entity Common Stock, Shares Outstanding | 39,268,698 |
Entity Voluntary Filers | No |
Entity Shell Company | false |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | Level 18, Sohu.com Media Plaza Block 3, No. 2 Kexueyuan South Road, Haidian District |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100190 |
Contact Personnel Name | Joanna Lv |
ADS [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares, each representing one ordinary share, par value US$0.001 per share |
Trading Symbol | SOHU |
Security Exchange Name | NASDAQ |
Common Stock [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | Ordinary shares |
No Trading Symbol Flag | true |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 305,126 | $ 819,485 |
Restricted cash | 8,661 | 3,539 |
Short-term investments | 1,316,833 | 1,041,395 |
Account and financing receivables, net | 260,716 | 264,411 |
Prepaid and other current assets (including $31,607 and $33,329, respectively, due from a related party as of December 31, 2018 and 2019) | 124,332 | 225,744 |
Current assests associated with discontinued operations | 0 | 34,324 |
Total current assets | 2,015,668 | 2,388,898 |
Fixed assets, net | 447,688 | 504,647 |
Goodwill | 52,923 | 53,263 |
Long-term investments, net | 94,332 | 108,356 |
Intangible assets, net | 11,437 | 24,071 |
Restricted time deposits | 240 | 244,179 |
Prepaid non-current assets | 1,882 | 3,107 |
Other assets | 65,620 | 43,928 |
Non-current assests associated with discontinued operations | 0 | 398 |
Total assets | 2,689,790 | 3,370,847 |
LIABILITIES | ||
Accounts payable (including accounts payable of consolidated variable interest entities ("VIEs") without recourse to the Company of $84,749 and $74,781, respectively, as of December 31, 2018 and 2019) | 253,403 | 286,745 |
Accrued liabilities (including accrued liabilities of consolidated VIEs without recourse to the Company of $60,555 and $64,874, respectively, as of December 31, 2018 and 2019) | 249,810 | 292,282 |
Receipts in advance and deferred revenue (including receipts in advance and deferred revenue of consolidated VIEs without recourse to the Company of $43,020 and $47,735, respectively, as of December 31, 2018 and 2019) | 118,222 | 120,404 |
Accrued salary and benefits (including accrued salary and benefits of consolidated VIEs without recourse to the Company of $7,389 and $7,670, respectively, as of December 31, 2018 and 2019) | 110,833 | 108,011 |
Tax payables (including tax payables of consolidated VIEs without recourse to the Company of $14,110 and $9,750, respectively, as of December 31, 2018 and 2019) | 102,686 | 93,073 |
Short-term bank loans (including short-term bank loans of consolidated VIEs without recourse to the Company of nil as of both December 31,2018 and 2019) | 114,528 | 129,677 |
Other short-term liabilities (including other short-term liabilities of consolidated VIEs without recourse to the Company of $65,352 and $63,439, respectively, as of December 31, 2018 and 2019, and due to a related party of $32,718 and $33,536, respectively, as of December 31, 2018 and 2019.) | 149,311 | 123,921 |
Current liabilities associated with discontinued operations | 0 | 101,105 |
Total current liabilities | 1,098,793 | 1,255,218 |
Long-term accounts payable (including long-term accounts payable of consolidated VIEs without recourse to the Company of nil as of both December 31, 2018 and 2019) | 767 | 752 |
Long-term bank loans (including long-term bank loans of consolidated VIEs without recourse to the Company of nil as of both December 31, 2018 and 2019) | 0 | 302,323 |
Long-term tax liabilities (including long-term tax liabilities of consolidated VIEs without recourse to the Company of $13,554 and $13,220, respectively, as of December 31, 2018 and 2019) | 181,640 | 174,339 |
Deferred tax liabilities (including deferred tax liabilities of consolidated VIEs without recourse to the Company of $2,239 and $1,998, respectively, as of December 31, 2018 and 2019) | 95,904 | 85,264 |
Other long-term liabilities (including other long-term liabilities of consolidated VIEs without recourse to the Company of nil and $1,130, respectively, as of December 31, 2018 and 2019) | 5,769 | 0 |
Total long-term liabilities | 284,080 | 562,678 |
Total liabilities | 1,382,873 | 1,817,896 |
Commitments and contingencies | ||
SHAREHOLDERS' EQUITY | ||
Ordinary Shares: $0.001 par value per share (75,400 shares authorized; 39,229 shares and 39,269 shares, respectively, issued and outstanding as of December 31, 2018 and 2019) | 39 | 39 |
Additional paid-in capital | 948,201 | 958,883 |
Accumulated other comprehensive income | 24,351 | 24,719 |
Accumulated deficit | (544,137) | (394,801) |
Total Sohu.com Limited shareholders' equity | 428,454 | 588,840 |
Noncontrolling interest | 878,463 | 964,111 |
Total shareholders' equity | 1,306,917 | 1,552,951 |
Total liabilities and shareholders' equity | $ 2,689,790 | $ 3,370,847 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Account and financing receivables due from a related party | $ 2,006,000 | $ 1,445,000 |
Prepaid and other current assets due from a related party | 33,329,000 | 31,607,000 |
Accounts payable | 253,403,000 | 286,745,000 |
Accrued liabilities | 249,810,000 | 292,282,000 |
Receipts in advance and deferred revenue | 118,222,000 | 120,404,000 |
Accrued salary and benefits | 110,833,000 | 108,011,000 |
Tax payables | 102,686,000 | 93,073,000 |
Short-term bank loans | 114,528,000 | 129,677,000 |
Other short-term liabilities | 149,311,000 | 123,921,000 |
Due to a related party | 33,536,000 | 32,718,000 |
Long-term accounts payable | 767,000 | 752,000 |
Long-term bank loans | 0 | 302,323,000 |
Long-term tax liabilities | 181,640,000 | 174,339,000 |
Deferred tax liabilities | 95,904,000 | 85,264,000 |
Other long-term liabilities | $ 5,769,000 | $ 0 |
Ordinary Share, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Ordinary Share, shares authorized (in shares) | 75,400 | 75,400 |
Ordinary Share, shares issued (in shares) | 39,269 | 39,229 |
Ordinary Share, shares outstanding (in shares) | 39,269 | 39,229 |
Variable Interest Entity Primary Beneficiary [Member] | ||
Accounts payable | $ 74,781,000 | $ 84,749,000 |
Accrued liabilities | 64,874,000 | 60,555,000 |
Receipts in advance and deferred revenue | 47,735,000 | 43,020,000 |
Accrued salary and benefits | 7,670,000 | 7,389,000 |
Tax payables | 9,750,000 | 14,110,000 |
Short-term bank loans | 0 | 0 |
Other short-term liabilities | 63,439,000 | 65,352,000 |
Long-term accounts payable | 0 | 0 |
Long-term bank loans | 0 | 0 |
Long-term tax liabilities | 13,220,000 | 13,554,000 |
Deferred tax liabilities | 1,998,000 | 2,239,000 |
Other long-term liabilities | $ 1,130,000 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income /(Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||
Revenues | $ 1,845,447 | $ 1,812,827 | $ 1,769,589 |
Cost of revenues: | |||
Cost of revenues | 982,095 | 982,486 | 950,268 |
Gross profit | 863,352 | 830,341 | 819,321 |
Operating expenses: | |||
Product development | 419,114 | 441,161 | 412,173 |
Sales and marketing | 340,840 | 380,290 | 390,423 |
General and administrative | 95,773 | 108,764 | 119,041 |
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 7,245 | 16,369 | 86,882 |
Total operating expenses | 862,972 | 946,584 | 1,008,519 |
Operating profit/(loss) | 380 | (116,243) | (189,198) |
Other income /(expense), net | 21,948 | 64,724 | 6,697 |
Interest income (including interest income generated from a related party of $1,157, $1,051 and $1,051, respectively, for 2017, 2018 and 2019) | 10,546 | 24,074 | 24,138 |
Interest expense (including interest expense generated from a related party of $724, $519 and $818, respectively, for 2017, 2018 and 2019) | (14,370) | (17,538) | (4,088) |
Exchange difference | 3,279 | 9,026 | (14,385) |
Income /(loss) before income tax expense /(benefit) | 21,783 | (35,957) | (176,836) |
Income tax expense /(benefit) | 31,176 | (13,433) | 272,636 |
Net loss from continuing operations | (9,393) | (22,524) | (449,472) |
Net loss from discontinued operations, net of tax | (33,998) | (44,835) | (20,531) |
Net loss | (43,391) | (67,359) | (470,003) |
Less: Net income from continuing operations attributable to the noncontrolling interest shareholders | 117,177 | 107,318 | 91,076 |
Less: Net loss from discontinued operations attributable to the noncontrolling interest shareholders | (11,232) | (14,595) | (6,553) |
Net loss from continuing operations attributable to Sohu.com Limited | (126,570) | (129,842) | (540,548) |
Net loss from discontinued operations attributable to Sohu.com Limited | (22,766) | (30,240) | (13,978) |
Net loss attributable to Sohu.com Limited | (149,336) | (160,082) | (554,526) |
Net loss | (43,391) | (67,359) | (470,003) |
Foreign currency translation adjustments | (13,069) | (37,339) | 56,250 |
Change in unrealized gain /(loss) for equity securities with readily determinable fair values | 0 | 0 | 12,179 |
Other comprehensive income /(loss) | (13,069) | (37,339) | 68,429 |
Comprehensive loss | (56,460) | (104,698) | (401,574) |
Less: Comprehensive income attributable to noncontrolling interest shareholders | 93,244 | 61,376 | 117,960 |
Comprehensive loss attributable to Sohu.com Limited | $ (149,704) | $ (166,074) | $ (519,534) |
Basic net loss per share attributable to Sohu.com Limited [Abstract] | |||
Continuing operations | $ (3.22) | $ (3.33) | $ (13.91) |
Disontinued operations | (0.58) | (0.78) | (0.36) |
Net loss per share | $ (3.80) | $ (4.11) | $ (14.27) |
Shares used in computing basic net loss per share attributable to Sohu.com Limited | 39,249 | 38,959 | 38,858 |
Diluted net loss per share attributable to Sohu.com Limited [Abstract] | |||
Continuing operations diluted | $ (3.25) | $ (3.36) | $ (13.95) |
Disontinued operations diluted | (0.58) | (0.77) | (0.35) |
Net loss per share | $ (3.83) | $ (4.13) | $ (14.30) |
Shares used in computing diluted net loss per share attributable to Sohu.com Limited | 39,249 | 38,959 | 38,858 |
Brand advertising [Member] | |||
Revenues: | |||
Revenues | $ 174,861 | $ 231,945 | $ 314,112 |
Cost of revenues: | |||
Cost of revenues | 126,406 | 184,473 | 363,624 |
Search and search-related advertising [Member] | |||
Revenues: | |||
Revenues | 1,072,860 | 1,022,456 | 801,199 |
Cost of revenues: | |||
Cost of revenues | 703,144 | 664,164 | 412,904 |
Subtotal of online advertising [Member] | |||
Revenues: | |||
Revenues | 1,247,721 | 1,254,401 | 1,115,311 |
Cost of revenues: | |||
Cost of revenues | 829,550 | 848,637 | 776,528 |
Online games [Member] | |||
Revenues: | |||
Revenues | 440,902 | 389,788 | 449,533 |
Cost of revenues: | |||
Cost of revenues | 88,992 | 60,981 | 62,775 |
Others [Member] | |||
Revenues: | |||
Revenues | 156,824 | 168,638 | 204,745 |
Cost of revenues: | |||
Cost of revenues | $ 63,553 | $ 72,868 | $ 110,965 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income /(Loss) (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cost of revenue from a related party | $ 57,000 | $ 237,000 | $ 0 |
Interest income from a related party | 1,015,000 | 1,051,000 | 1,157,000 |
Interest expense from a related party | 818,000 | 519,000 | 724,000 |
Brand advertising [Member] | |||
Revenues from a related party | 174,000 | 224,000 | 247,000 |
Others [Member] | |||
Revenues from a related party | $ 3,796,000 | $ 2,187,000 | $ 2,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net loss | $ (43,391) | $ (67,359) | $ (470,003) |
Net loss from discontinued operations, net of tax | (33,998) | (44,835) | (20,531) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Amortization of intangible assets and purchased video content in prepaid expense | 39,547 | 59,315 | 140,238 |
Depreciation | 92,888 | 92,799 | 82,893 |
Goodwill impairment and impairment of intangibles via acquisition of businesses | 8,015 | 16,369 | 86,882 |
Share-based compensation expense | 18,251 | 2,095 | 41,468 |
Impairment of long-term investment | 34,119 | 2,605 | 5,754 |
Impairment of other intangible assets and other assets | 7,331 | 10,797 | 72,259 |
Investment loss /(gain) from equity investments | (2,960) | (14,045) | 1,451 |
Allowance for doubtful accounts and credit losses | 20,345 | 14,568 | 8,891 |
Provision for inventory | 2,734 | 2,547 | 0 |
Loss /(gain) from sale of equity investments | 0 | (134) | 523 |
Change in fair value of financial instruments | (2,327) | (10,857) | (10,447) |
Others | (1,995) | (730) | (1,068) |
Changes in assets and liabilities: | |||
Account and financing receivables | 15,268 | (32,833) | (50,418) |
Prepaid and other assets | 11,262 | (26,182) | 30,037 |
Accounts payable | (9,750) | 57,492 | 30,952 |
Receipts in advance and deferred revenue | (306) | 2,514 | 169 |
Tax liabilities | 14,709 | (72,954) | 262,726 |
Deferred tax | 8,455 | 43,798 | (82) |
Accrued liabilities and other short-term liabilities | (44,944) | (44,037) | (66,131) |
Net cash provided by continuing operating activities | 201,249 | 80,603 | 186,625 |
Net cash provided by discontinued operating activities | 9,341 | 3,422 | 1,062 |
Net cash provided by operating activities | 210,590 | 84,025 | 187,687 |
Cash flows from investing activities: | |||
Purchase of fixed assets | (45,277) | (100,989) | (78,711) |
Purchase of intangible and other assets | (51,479) | (97,611) | (65,652) |
Purchase of long-term investments | (23,777) | (20,613) | (7,680) |
Return of funds from a third party | 0 | 5,264 | 4,928 |
Collection of financing receivables | 226,086 | 59,967 | 0 |
Investment in financing receivables | (257,388) | (98,774) | 0 |
Proceeds from financial instruments | 2,763,189 | 2,957,984 | 1,219,986 |
Purchase of financial instruments | (3,046,582) | (3,177,532) | (1,785,012) |
Proceeds received from sale of equity investment | 0 | 12,073 | 0 |
Other cash proceeds /(payments) related to investing activities | 2,816 | 1,705 | (1,408) |
Net cash used in continuing investing activities | (432,412) | (458,526) | (713,549) |
Net cash used in discontinued investing activities | (10,808) | (718) | (954) |
Net cash used in investing activities | (443,220) | (459,244) | (714,503) |
Cash flows from financing activities: | |||
Consideration received from Sogou IPO, net of IPO Transaction Expenses | 0 | 0 | 622,131 |
Proceeds from long-term bank loan | 0 | 251,738 | 122,433 |
Proceeds from short-term bank loan | 58,035 | 74,056 | 67,785 |
Exercise of share-based awards in subsidiaries | 7 | 12 | 494 |
Repayments of loans from banks | (371,973) | (67,011) | (7,684) |
Repurchase of Sogou Pre-IPO Class A Ordinary Shares from noncontrolling shareholders | 0 | 0 | (3,190) |
Repurchase of Sogou Class A Ordinary Shares from noncontrolling shareholders | (42,016) | 0 | 0 |
Distribution of Changyou dividend to noncontrolling interest shareholders | (165,817) | (162,461) | 0 |
Other cash proceeds related to financing activities | 8,601 | 0 | 6 |
Net cash provided by/(used in) continuing financing activities | (513,163) | 96,334 | 801,975 |
Net cash provided by /(used in) financing activities | (513,163) | 96,334 | 801,975 |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted time deposits | (10,046) | (19,544) | 30,226 |
Reclassification of cash, cash equivalents, restricted cash and restricted time deposits from assets held for sale | 0 | 0 | 11,684 |
Net increase /(decrease) in cash, cash equivalents, restricted cash, and restricted time deposits | (755,839) | (298,429) | 317,069 |
Cash, cash equivalents, restricted cash and restricted time deposits at beginning of year | 1,069,866 | 1,368,295 | 1,051,226 |
Cash, cash equivalents, restricted cash and restricted time deposits at end of year | 314,027 | 1,069,866 | 1,368,295 |
Less: Cash, cash equivalents, restricted cash and restricted time deposits of discontinued operations, end of year | 0 | 2,663 | 243 |
Cash, cash equivalents, restricted cash and restricted time deposits of continuing operations, end of year | 314,027 | 1,067,203 | 1,368,052 |
Supplemental cash flow disclosures: | |||
Cash paid for income taxes | (31,116) | (53,147) | (43,264) |
Cash paid for interest expense | (9,396) | (12,563) | (7,176) |
Barter transactions | 20,087 | 28,404 | 6,110 |
Supplemental schedule of non-cash investing activity: | |||
Changes in payables and other liabilities related to fixed assets and intangible assets additions | $ (25,977) | $ 30,797 | $ 56,486 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] | Noncontrolling Interest [Member] |
Beginning balance at Dec. 31, 2016 | $ 1,557,795 | $ 45 | $ 821,867 | $ (143,858) | $ 3,220 | $ 312,306 | $ 564,215 |
Consideration received from Sogou IPO, net of IPO Transaction Expenses | 622,131 | 0 | 278,428 | 0 | 0 | 0 | 343,703 |
Share-based compensation expense | 41,468 | 0 | 827 | 0 | 0 | 0 | 40,641 |
Settlement/Adjustment of share-based awards in subsidiary | 494 | 0 | (2,755) | 0 | 0 | 0 | 3,249 |
Repurchase of Sogou Pre-IPO Class A Ordinary Shares from noncontrolling shareholders | (3,190) | 0 | 0 | 0 | 0 | 0 | (3,190) |
Purchase of noncontrolling interest | 193 | 0 | 88 | 0 | 0 | 0 | 105 |
Disposal of noncontrolling interest | (80) | 0 | 0 | 0 | 0 | 0 | (80) |
Net income /(loss) attributable to Sohu.com Limited and noncontrolling interest shareholders | (470,003) | 0 | 0 | 0 | 0 | (554,526) | 84,523 |
Repurchase of Sogou Class A Ordinary Shares from noncontrolling shareholders | 0 | ||||||
Accumulated other comprehensive loss | 68,429 | 0 | 0 | 0 | 34,992 | 0 | 33,437 |
Ending balance at Dec. 31, 2017 | 1,817,237 | 45 | 1,098,455 | (143,858) | 38,212 | (242,220) | 1,066,603 |
Share-based compensation expense | 2,095 | 0 | (5,559) | 0 | 0 | 0 | 7,654 |
Settlement/Adjustment of share-based awards in subsidiary | 1,811 | 0 | 9,839 | 0 | 0 | 0 | (8,028) |
Distribution of Changyou dividend to noncontrolling interest shareholders | (162,461) | 0 | 0 | 0 | 0 | 0 | (162,461) |
Disposal of a majority-owned subsidiary | (2,113) | 0 | 0 | 0 | 0 | 0 | (2,113) |
Liquidation of Sohu.com Inc. | 0 | (6) | (143,852) | 143,858 | 0 | 0 | 0 |
Net income /(loss) attributable to Sohu.com Limited and noncontrolling interest shareholders | (67,359) | 0 | 0 | 0 | 0 | (160,082) | 92,723 |
Repurchase of Sogou Class A Ordinary Shares from noncontrolling shareholders | 0 | ||||||
Accumulated other comprehensive loss | (37,339) | 0 | 0 | 0 | (5,992) | 0 | (31,347) |
Others | 1,080 | 0 | 0 | 0 | 0 | 0 | 1,080 |
Ending balance at Dec. 31, 2018 | 1,552,951 | 39 | 958,883 | 0 | 24,719 | (394,801) | 964,111 |
Impact of adoption of new accounting standard | 0 | 0 | 0 | 0 | (7,501) | 7,501 | 0 |
Share-based compensation expense | 18,251 | 0 | 1,045 | 0 | 0 | 0 | 17,206 |
Settlement/Adjustment of share-based awards in subsidiary | 698 | 0 | 2,555 | 0 | 0 | 0 | (1,857) |
Distribution of Changyou dividend to noncontrolling interest shareholders | (166,507) | 0 | 0 | 0 | 0 | 0 | (166,507) |
Net income /(loss) attributable to Sohu.com Limited and noncontrolling interest shareholders | (43,391) | 0 | 0 | 0 | 0 | (149,336) | 105,945 |
Repurchase of Sogou Class A Ordinary Shares from noncontrolling shareholders | (42,016) | 0 | (14,282) | 0 | 0 | 0 | (27,734) |
Accumulated other comprehensive loss | (13,069) | 0 | 0 | 0 | (368) | 0 | (12,701) |
Ending balance at Dec. 31, 2019 | $ 1,306,917 | $ 39 | $ 948,201 | $ 0 | $ 24,351 | $ (544,137) | $ 878,463 |
The Company and Nature of Opera
The Company and Nature of Operations | 12 Months Ended |
Dec. 31, 2019 | |
THE COMPANY AND NATURE OF OPERATIONS [Abstract] | |
The Company and Nature of Operations | 1. THE COMPANY AND NATURE OF OPERATIONS Nature of Operations and Organization Sohu.com Limited was incorporated in the Cayman Islands on May 30, 2003 as a direct wholly-owned subsidiary of Sohu.com Inc., which was incorporated in Delaware in August 1996 and was the ultimate parent company of the Sohu Group (as defined below) until its dissolution on May 31, 2018. On July 17, 2000, Sohu.com Inc. completed an initial public offering (“IPO”) of shares of its common stock on NASDAQ trading under the symbol “SOHU.” On May 31, 2018, pursuant to a proposal for the dissolution of Sohu.com Inc. and adoption of a plan of complete liquidation and dissolution of Sohu.com Inc. that was approved by the stockholders of Sohu.com Inc. at a special meeting of stockholders held on May 29, 2018, Sohu.com Inc. was dissolved, all outstanding shares of the common stock of Sohu.com Inc. were delisted and cancelled, and American Depositary Shares (“ADSs”) representing all outstanding ordinary shares of Sohu.com Limited were distributed on a share-for-share top-tier, The Sohu Group is a leading Chinese online media, search and game service group providing comprehensive online products and services on PCs and mobile devices in China. The Sohu Group, which consists of “Sohu,” which when referred to in this report, unless the context requires otherwise, excludes the businesses and the corresponding subsidiaries and VIEs of Sogou Inc. (“Sogou”) and Changyou.com Limited (“Changyou”), Sogou and Changyou. Sogou and Changyou are the indirect controlled subsidiaries of the Company. Sohu is a leading Chinese language online media content and services provider; Sogou is an innovator in search and a leader in China’s Internet industry; and Changyou is a leading online game developer and operator in China that engages primarily in the development, operation and licensing of online games for PCs and mobile devices. Most of the Sohu Group’s operations are conducted through the Group’s China-based subsidiaries and VIEs. Sogou completed its IPO on the NYSE in November 2017 trading under the symbol “SOGO.” Changyou completed its IPO on NASDAQ in April 2009, trading under the symbol “CYOU.” As Sohu.com Limited, or its predecessor Sohu.com Inc., is the controlling shareholder of both Sogou and Changyou, Sohu.com Limited consolidates Sogou and Changyou in its consolidated financial statements, and recognizes noncontrolling interests reflecting economic interests in Sogou and Changyou held by shareholders other than Sohu.com Limited. The consolidated financial statements of Sohu.com Limited represent the continuation of the financial statements of Sohu.com Inc., reflecting the assets and liabilities, accumulated deficit and other equity balances of Sohu.com Inc. immediately before Sohu.com Inc.’s dissolution on May 31, 2018. Through the operation of Sohu, Sogou and Changyou, the Sohu Group generates online advertising revenues, including brand advertising revenues and search and search-related advertising revenues; online games revenues; and other revenues. Online advertising and online games are the Sohu Group’s core businesses. The principal subsidiaries and VIEs through which the Group conducts its business operations as of December 31, 2019 are described below: Name of Entity Date of Place of Effective Subsidiaries: For Sohu’s Business: Sohu.com (Hong Kong) Limited (“Sohu HK”) Incorporated on April 19, 2000 Hong Kong 100% Beijing Sohu New Era Information Technology Co., Ltd. (“Sohu Era”) Incorporated on July 25, 2003 People’s Republic of China 100% Sohu.com (Search) Limited (“Sohu Search”) Incorporated on October 28, 2005 Cayman Islands 100% Beijing Sohu New Media Information Technology Co., Ltd. (“Sohu Media”) Incorporated on June 19, 2006 People’s Republic of China 100% Sohu.com (Game) Limited (“Sohu Game”) Incorporated on February 11, 2008 Cayman Islands 100% Beijing Sohu New Momentum Information Technology Co., Ltd. (“Sohu New Momentum”) Incorporated on May 31, 2010 People’s Republic of China 100% Fox Video Limited (“Sohu Video”) Incorporated on July 26, 2011 Cayman Islands 100% Fox Information Technology (Tianjin) Limited (“Video Tianjin”) Incorporated on November 17, 2011 People’s Republic of China 100% Sohu Focus Limited (“Sohu Focus”) Incorporated on July 11, 2013 Cayman Islands 100% For Sogou’s Business: Sogou Inc. (“Sogou”) Incorporated on December 23, 2005 Cayman Islands 34% Sogou (BVI) Limited (“Sogou BVI”) Incorporated on December 23, 2005 British Virgin Islands 34% Beijing Sogou Technology Development Co., Ltd. (“Sogou Technology”) Incorporated on February 8, 2006 People’s Republic of China 34% Sogou Hong Kong Limited (“Sogou HK”) Incorporated on December 12, 2007 Hong Kong 34% Vast Creation Advertising Media Services Limited (“Vast Creation”) Acquired on November 30, 2011 Hong Kong 34% Beijing Sogou Network Technology Co., Ltd (“Sogou Network”) Incorporated on March 29, 2012 People’s Republic of China 34% Sogou (Shantou) Internet Microcredit Co., Ltd. (“Sogou Microcredit”) Incorporated on November 22, 2017 People’s Republic of China 34% Sogou (Hangzhou) Intelligent Technology Co., Ltd. (“Sogou Hangzhou”) Incorporated on April 28, 2018 People’s Republic of China 34% Shantou Ying Zhong Bai Fu Financing Guarantee Co., Ltd. (“Sogou Financing Guarantee”) Incorporated on July 24, 2019 People’s Republic of China 34% For Changyou’s Business: Changyou.com Limited (“Changyou”) Incorporated on August 6, 2007 Cayman Islands 67% Changyou.com (HK) Limited (“Changyou HK”) Incorporated on August 13, 2007 Hong Kong 67% Beijing AmazGame Age Internet Technology Co., Ltd. (“AmazGame”) Incorporated on September 26, 2007 People’s Republic of China 67% Beijing Changyou Gamespace Software Technology Co., Ltd. (“Gamespace”) Incorporated on October 29, 2009 People’s Republic of China 67% Beijing Changyou Chuangxiang Software Technology Co., Ltd. (“Changyou Chuangxiang”) Incorporated on November 8, 2016 People’s Republic of China 67% VIEs: For Sohu’s Business: Beijing Century High-Tech Investment Co., Ltd. (“High Century”) Incorporated on December 28, 2001 People’s Republic of China 100% Beijing Heng Da Yi Tong Information Technology Co., Ltd. (“Heng Da Yi Tong”) Incorporated on February 7, 2002 People’s Republic of China 100% Beijing Sohu Internet Information Service Co., Ltd. (“Sohu Internet”) Incorporated on July 31, 2003 People’s Republic of China 100% Beijing Sohu Donglin Advertising Co., Ltd. (“Donglin”) Incorporated on May 17, 2010 People’s Republic of China 100% Tianjin Jinhu Culture Development Co., Ltd (“Tianjin Jinhu”) Incorporated on November 24, 2011 People’s Republic of China 100% Beijing Focus Interactive Information Service Co., Ltd. (“Focus Interactive”) Incorporated on July 15, 2014 People’s Republic of China 100% For Sogou’s Business: Beijing Sogou Information Service Co., Ltd.(“Sogou Information”) Incorporated on December 28, 2005 People’s Republic of China 34% Chengdu Easypay Technology Co., Ltd. (“Chengdu Easypay”) Incorporated on January 19, 2015 People’s Republic of China 34% For Changyou’s Business: Beijing Gamease Age Digital Technology Co., Ltd. (“Gamease”) Incorporated on August 23, 2007 People’s Republic of China 67% Shanghai ICE Information Technology Co., Ltd. (“Shanghai ICE”) Acquired on May 28, 2010 People’s Republic of China 67% Beijing Guanyou Gamespace Digital Technology Co., Ltd. (“Guanyou Gamespace”) Incorporated on August 5, 2010 People’s Republic of China 67% Sohu’s Business Brand Advertising Business Sohu’s main business is the brand advertising business, which offers to users, over Sohu’s matrices of Chinese language online media, various content, products and services across multiple Internet-enabled devices such as mobile phones, tablets and PCs,. The majority of Sohu’s products and services are provided in China through Sohu Media Portal, Sohu Video and Focus. • Sohu Media Portal. • Sohu Video. • Focus. Revenues generated by the brand advertising business are classified as brand advertising revenues in the Sohu Group’s consolidated statements of comprehensive income. Other Sohu Business Sohu also engages in the other business, which consists primarily of paid subscription services, interactive broadcasting services, and sub-licensing Sogou’s Business Search and Search-related Business The search and search-related business consists primarily of search and search-related advertising services offered by Sogou. Search and search-related advertising services enable advertisers’ promotional links to be displayed on Sogou’s search results pages and other Internet properties and third parties’ Internet properties where the links are relevant to the subject and content of searches and such properties. Sogou’s advertising services expand distribution of advertisers’ promotional links and advertisements by leveraging traffic on third parties’ Internet properties, including Web content, software, and mobile applications. The search and search-related business benefits from Sogou’s collaboration with Tencent Holdings Limited (together with its subsidiaries, “Tencent”), which provides Sogou access to traffic and content generated from products and services provided by Tencent. Revenues generated by the search and search-related business are classified as search and search-related advertising revenues in the Sohu Group’s consolidated statements of comprehensive income. Other Sogou Business Sogou also offers IVAS, primarily with respect to the operation of Web games and mobile games developed by third parties, and offers other products and services, including smart hardware products and online lending and microcredit services. Revenues generated by Sogou from other business are classified as other revenues in the Sohu Group’s consolidated statements of comprehensive income. Initial Public Offering of Sogou On November 13, 2017, Sogou completed its IPO on the NYSE, trading under the symbol “SOGO.” Proceeds to Sogou from the IPO were approximately $622.1 million, after deducting underwriting discounts and commissions and offering expenses. Following the completion of Sogou’s IPO, pursuant to the Voting Agreement among Sohu, Tencent, and Sogou (the “Voting Agreement”) that took effect upon the completion of Sogou’s IPO, Sohu has the right to appoint a majority of Sogou’s Board of Directors, and Sohu continues to consolidate Sogou in Sohu’s financial statements and provide for noncontrolling interests reflecting ordinary shares in Sogou held by shareholders other than Sohu. In the fourth quarter of 2017, Sohu recognized a one-time paid-in Sogou’s Share Structure Sogou’s Ordinary Shares are divided into Sogou Class A Ordinary Shares and Sogou Class B Ordinary Shares. Holders of Sogou Class A Ordinary Shares and holders of Sogou Class B Ordinary Shares have identical rights with the exception of voting and conversion rights. Each Sogou Class A Ordinary Share is entitled to one vote per share and is not convertible. Each Sogou Class B Ordinary Share is entitled to ten votes per share and is convertible at any time into one Sogou Class A Ordinary Share. As of December 31, 2019, Sogou had a combined total of 388,731,140 Sogou Class A Ordinary Shares and Sogou Class B Ordinary Shares issued and outstanding, consisting of: (i) Sohu: 127,200,000 Sogou Class B Ordinary Shares held by Sohu for its own account, and 3,717,250 Sogou Class A Ordinary Shares held by Sohu for the purpose of issuance upon the exercise of outstanding share-based awards and future share-based awards; (ii) Tencent: 151,557,875 Sogou Class B Ordinary Shares; (iii) Photon: 24,686,863 Sogou Class A Ordinary Shares; and (iv) Shareholders other than Sohu, Tencent, and Photon: 81,569,152 Sogou Class A Ordinary Shares, including Sogou Class A Ordinary Shares represented by Sogou ADSs. The total number of Sogou outstanding shares listed above include 5,520,000 Sogou Class A Ordinary Shares that are outstanding for legal purposes, but have been determined to be Sogou treasury stock for accounting purposes. Voting Agreement between Sohu, Tencent and Sogou Pursuant to the Voting Agreement, Sohu and Tencent agreed that, subject to certain exceptions, (1) within three years following the completion of Sogou’s IPO, Sohu will vote all Sogou Class B Ordinary Shares and any Sogou Class A Ordinary Shares held by it and Tencent will vote 45,578,896 of its Sogou Class B Ordinary Shares to elect a Board of Directors consisting of seven directors, four of whom will be appointed by Sohu, two of whom will be appointed by Tencent, and the seventh of whom will be Sogou’s then chief executive officer, and (2) after three years following the completion of Sogou’s IPO, Sohu will be entitled to choose to change the size and composition of Sogou’s Board of Directors, subject to Tencent’s right to appoint at least one director. The effect of these provisions is to give Sohu the power to appoint a majority of Sogou’s Board of Directors, and to give Tencent the power to appoint two directors within three years following the completion of Sogou’s IPO and at least one director after three years after the completion of Sogou’s IPO. The Voting Agreement also provides that, subject to certain conditions, for so long as Sohu and Tencent together hold more than 50% of the total voting power of the Sogou Class A Ordinary Shares and the Sogou Class B Ordinary Shares, Sohu or Tencent may remove and replace any director appointed by it. These provisions of the Voting Agreement are also reflected in Sogou’s Third Amended and Restated Memorandum of Association (“Sogou’s Amended and Restated Memorandum of Association”) and Seventh Amended and Restated Articles of Association (“Sogou’s Amended and Restated Articles of Association”). Due to the additional voting power of the Sogou Class B Ordinary Shares held by Sohu and Tencent, as of the date of this report Sohu holds approximately 34% of the total of Sogou’s outstanding Class A and Class B Ordinary Shares and controls approximately 44% of the total voting power of the combined total of Sogou’s outstanding Class A and Class B Ordinary Shares; Tencent has an indirect shareholding of approximately 39% of the total of Sogou’s outstanding Class A and Class B Ordinary Shares and controls approximately 52% of the total voting power of the combined total of Sogou’s outstanding Class A and Class B Ordinary Shares; and Sohu and Tencent together have the power to decide all matters that may be brought to a vote of Sogou’s shareholders. The Voting Agreement and Sogou’s Amended and Restated Articles of Association also specify that for so long as Sohu or Tencent holds not less than 15% of Sogou’s issued shares (calculated on a fully diluted basis), consent from the holder of 15% or more (either or both of Sohu or Tencent, as the case may be) will be required (1) to amend Sogou’s Amended and Restated Memorandum of Association or Amended and Restated Articles of Association, (2) to make material changes in Sogou’s principal lines of business, (3) to issue any additional Sogou Class B Ordinary Shares, (4) to create any new class or series of shares that is pari passu with or senior to the Sogou Class A Ordinary Shares, (5) for Sogou to approve a liquidation, dissolution or winding up of Sogou, or a merger or consolidation resulting in a change in control, or any disposition of all or substantially all of Sogou’s assets, or (6) for Sogou to enter into any transactions with affiliates of Sohu, other than in the ordinary course of business. Of these corporate actions that are subject to consent of Sohu or Tencent (as applicable), shareholder approval is required under the Companies Law of the Cayman Islands for any amendment of Sogou’s Amended and Restated Memorandum of Association or Amended and Restated Articles of Association, any winding-up The Voting Agreement and Sogou’s Amended and Restated Articles of Association also specify that if at any time Sohu alone holds more than 50% of the total voting power of the Sogou Class A Ordinary Shares and the Sogou Class B Ordinary Shares, the voting arrangements with respect to the size and composition of Sogou’s Board of Directors will be automatically suspended until such time within five years after the completion of Sogou’s IPO as Sohu’s voting power again drops to 50% or less, in which case the original voting arrangements will be reinstated, provided that Tencent will only be required to vote the lower of 45,578,896 Sogou Class B Ordinary Shares held by it or such number as would give Sohu combined voting power of 50.1%. If such a suspension continues after the fifth anniversary of the completion of Sogou’s IPO, the voting arrangements with respect to the size and composition of Sogou’s Board of Directors will terminate. All of the Sogou Class B Ordinary Shares held by Sohu will be converted into Sogou Class A Ordinary Shares if there is a transaction resulting in change of control of Sohu that was not approved by Sohu’s board of directors, if specified competitors of Tencent control Sohu, or if a majority of Sohu’s board of directors consist of nominees of specified competitors of Tencent. The provisions with respect to the size and composition of Sogou’s Board of Directors set out in the Voting Agreement and Sogou’s Amended and Restated Articles of Association will terminate upon occurrence of any such event. Such arrangements will also terminate (1) if Dr. Charles Zhang, the chairman of the board of directors of Sohu and the chief executive officer, both ceases being the chairman of the board of directors of Sohu and ceases being the single largest beneficial owner of Sohu’s outstanding shares; (2) if Sohu transfers 30% or more of the Sogou Class B Ordinary Shares that Sohu held upon the completion of Sogou’s IPO; (3) if Sogou fails to provide irrevocable instructions to the person maintaining Sogou’s register of members to accept instructions from Tencent, under certain circumstances, with respect to the conversion of Sogou Class B Ordinary Shares held by Sohu; (4) or Sogou changes, without Tencent’s consent, the person that maintains Sogou’s register of members; (5) or if Tencent ceases to own any Sogou Class B Ordinary Shares. Under the Voting Agreement, Sohu and Tencent are subject to certain restrictions on transfer of their Sogou Class A and Class B Ordinary Shares. In particular, a transfer of Sogou Class B Ordinary Shares by either Sohu or Tencent, respectively, to any person or entity that is not a direct or indirect wholly-owned subsidiary of Sohu or Tencent, respectively, will cause such Sogou Class B Ordinary Shares to be converted into Sogou Class A Ordinary Shares. Voting Agreement between Sohu, Photon and Sogou Management Sohu may be deemed to have beneficial ownership attributable to shared voting power of Sogou Class A Ordinary Shares beneficially owned by Photon Group Limited (“Photon”), an investment vehicle of the Company’s Chairman and Chief Executive Officer Charles Zhang, Sogou’s chief executive officer Xiaochuan Wang, and certain other members of the Sogou management, as a result of a voting agreement by and among Sohu, Photon, Mr. Wang and the other members of Sogou management, pursuant to which Photon, Mr. Wang, and the other members of Sogou Management have agreed to vote their Sogou Class A Ordinary Shares (not including shares acquired by Mr. Wang in the public market following Sogou’s IPO) to elect Sohu’s designees to Sogou’s Board of Directors. Changyou’s Business Changyou’s business lines consist of the online game business and the platform channel business, which consists primarily of online advertising and mobile game distribution services. Before ceasing its operations in August 2019, Changyou also operated a cinema advertising business, which consisted primarily of the acquisition from operators of movie theaters, and the sale to advertisers, of pre-film Online Game Business Changyou’s online game business offers PC games and mobile games to game players. All of Changyou’s games are operated under the item-based revenue model, meaning that game players can play the games for free, but may choose to pay for virtual items, which are non-physical PC Games PC games are interactive online games that are accessed and played simultaneously by hundreds of thousands of game players through personal computers and require that local client-end client-end Mobile Games Mobile games are played on mobile devices and require an Internet connection. In the second quarter of 2017, Changyou launched a mobile game, Legacy TLBB (“Legacy TLBB Mobile”), which is operated by Tencent under license from Changyou. For the year ended December 31, 2019, revenues from Legacy TLBB Mobile were $101.1 million, accounting for approximately 23% of Changyou’s online game revenues, approximately 22% of Changyou’s total revenues, and approximately 5% of the Sohu Group’s total revenues. Platform Channel Business Changyou’s platform channel business consists primarily of the operation of the 17173.com Website. Prior to RaidCall’s ceasing operations in March 2019 and the sale of MoboTap Inc. (“MoboTap”) in March 2018, Changyou’s platform channel business also included RaidCall and MoboTap. 17173.com Website The 17173.com Website provides news, electronic forums, online videos, mobile game distribution services, and other online game information services to game players. All revenues generated by the 17173.com Website are classified as brand advertising revenues. RaidCall Prior to ceasing operations in March 2019, RaidCall provided online music and entertainment services, primarily in Taiwan. IVAS revenues that were generated by RaidCall are classified as other revenues in the Sohu Group’s consolidated statements of comprehensive income. Cinema Advertising Business (Discontinued) Prior to ceasing its operations in August 2019, Changyou also operated a cinema advertising business, which consisted primarily of the acquisition from operators of movie theaters, and the sale to advertisers, of pre-film Changyou’s Share Structure Changyou’s Ordinary Shares are divided into Changyou Class A Ordinary Shares and Changyou Class B Ordinary Shares. Holders of Changyou Class A Ordinary Shares and holders of Changyou Class B Ordinary Shares have identical rights with the exception of voting and conversion rights. Each Changyou Class A Ordinary Share is entitled to one vote per share and is not convertible. Each Changyou Class B Ordinary Share is entitled to ten votes per share and is convertible at any time into one Changyou Class A Ordinary Share. As of December 31, 2019, Changyou had a combined total of 107,263,420 Changyou Class A and Class B Ordinary Shares issued and outstanding, consisting of: (i) Sohu: 1,500,000 Changyou Class A Ordinary Shares and 70,250,000 Changyou Class B Ordinary Shares; and (ii) Public shareholders: 35,513,420 Changyou Class A Ordinary Shares represented by Changyou’s ADSs. As of December 31, 2019, Sohu held approximately 67% of the combined total of Changyou’s outstanding ordinary shares, and controlled approximately 95% of the total voting power in Changyou. As a result of the completion of Sohu’s acquisition, by way of a merger (the “Changyou Merger”), of the noncontrolling interests in Changyou on April 17, 2020, as of the date of this report, Sohu holds 100% of the combined total of Changyou’s outstanding ordinary shares and 100% of the total voting power in Changyou. As Changyou’s controlling shareholder, Sohu consolidates Changyou in its consolidated financial statements and, prior to the completion of the Changyou Merger on April 17, 2020, also provided for noncontrolling interests reflecting ordinary shares in Changyou held by shareholders other than the Company (“Changyou noncontrolling shareholders”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Standards The consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”) to reflect the financial position and results of operations of the Sohu Group. Discontinued operations A component of a reporting entity or a group of components of a reporting entity that are disposed of or meet the criteria to be classified as held for sale should be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Discontinued operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed of, if the component either (1) represents a strategic shift or (2) has a major impact on an entity’s financial results and operations. In the statement of financial position, the assets and liabilities of the discontinued operation are presented separately in the asset and liability sections, respectively, of the statement of financial position and prior periods are presented on a comparative basis. In the consolidated statements of comprehensive income, results from discontinued operations are reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. Cash flows for discontinued operations are presented separately in the consolidated statements of cash flows. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations. Use of Estimates The preparation of these financial statements requires the Sohu Group to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going Basis of Consolidation and Recognition of Noncontrolling Interest The Sohu Group’s consolidated financial statements include the accounts of the Company and its subsidiaries and consolidated VIEs. All intra-Group transactions are eliminated. VIE Consolidation The Sohu Group’s VIEs are wholly or partially owned by certain employees of the Group as nominee shareholders. For consolidated VIEs, management made evaluations of the relationships between the Sohu Group and the VIEs and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluation, management also took into account the fact that, as a result of such contractual arrangements, the Group controls the shareholders’ voting interests in these VIEs. As a result of such evaluation, management concluded that the Sohu Group is the primary beneficiary of its consolidated VIEs. Noncontrolling Interest Recognition Noncontrolling interests are recognized to reflect the portion of the equity of subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholders. Currently, the noncontrolling interests in the Sohu Group’s consolidated financial statements primarily consist of noncontrolling interests for Sogou and Changyou. Noncontrolling Interest for Sogou Prior to the completion of Sogou’s IPO in November 2017, the Company controlled the election of a majority of the Board of Directors of Sogou pursuant to a shareholders’ agreement that expired upon the completion of the IPO. Following the completion of Sogou’s IPO, pursuant to the Voting Agreement and Sogou’s Amended and Restated Articles of Association, the Company still has the right to appoint a majority of Sogou’s Board of Directors. As Sogou’s controlling shareholder, the Company consolidates Sogou in its consolidated financial statements, and recognizes noncontrolling interest reflecting economic interests in Sogou held by shareholders other than it (the “Sogou noncontrolling shareholders”). Sogou’s net income /(loss) attributable to the Sogou noncontrolling shareholders is recorded as noncontrolling interest in its consolidated statements of comprehensive income. Noncontrolling Interest Recognition before Sogou’s IPO Based on the principles of allocation of Sogou’s profit and loss set forth below, Sogou’s cumulative results of operations attributable to the Sogou noncontrolling shareholders, along with changes in shareholders’ equity/(deficit) and adjustments for share-based compensation expense in relation to those share-based awards that were unvested and vested but not yet settled and the Sogou noncontrolling shareholders’ investments in Sogou Series A Preferred Shares outstanding before Sogou’s IPO (“Sogou Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Principles of Allocation of Sogou’s Profit and Loss - By virtue of the terms of the Sogou Pre-IPO Pre-IPO Pre-IPO (i) net losses were allocated to holders of the Sogou Pre-IPO Pre-IPO (ii) additional net losses were allocated to holders of the Sogou Pre-IPO (iii) additional net losses were allocated to the holder of the Sogou Pre-IPO (iv) further net losses were allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou. Net income from Sogou was allocated in the following order before Sogou’s IPO: (i) net income was allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou until their basis in Sogou increased to zero; (ii) additional net income was allocated to the holder of the Sogou Pre-IPO (iii) additional net income was allocated to holders of the Sogou Pre-IPO (iv) further net income was allocated to holders of the Sogou Pre-IPO Pre-IPO (v) further net income was allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou. Noncontrolling Interest Recognition after Sogou’s IPO Sogou’s cumulative results of operations attributable to the Sogou noncontrolling shareholders, based on their share of the economic interest in Sogou, along with changes in shareholders’ equity and adjustment for share-based compensation expense in relation to share-based awards that are unvested and vested but not yet settled and adjustment for changes in the Sohu Group’s ownership percentage in Sogou, are recorded as noncontrolling interest in the Sohu Group’s consolidated balance sheets. Noncontrolling Interest for Changyou As Changyou’s controlling shareholder, Sohu consolidates Changyou in its consolidated financial statements and, prior to the completion of the Changyou Merger on April 17, 2020, also recognizes noncontrolling interest reflecting the economic interest in Changyou held by Changyou noncontrolling shareholders. Changyou’s net income /(loss) attributable to the Changyou noncontrolling shareholders is recorded as noncontrolling interest in the Sohu Group’s consolidated statements of comprehensive income, based on the noncontrolling shareholders’ share of the economic interest in Changyou. Changyou’s cumulative results of operations attributable to the Changyou noncontrolling shareholders, along with changes in shareholders’ equity, adjustment for share-based compensation expense in relation to those share-based awards which are unvested and vested but not yet settled and adjustment for changes in the Company’s ownership in Changyou, are recorded as noncontrolling interest in the Sohu Group’s consolidated balance sheets. Segment Reporting The Sohu Group’s segments are business units that offer different services and are reviewed separately by the chief operating decision maker (the “CODM”), or the decision-making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM is the Company’s Chief Executive Officer. Revenue Recognition Impact of Adoption of ASC 606 On January 1, 2018, the Sohu Group adopted ASC 606, applying the modified retrospective method to contracts that were not completed as of January 1, 2018. The adoption of ASC 606 did not have a material impact on the Company’s accumulated deficit as of January 1, 2018. Results for reporting periods beginning on or after January 1, 2018 are presented under ASC 606, while prior-period amounts are not adjusted and continue to be reported in accordance with the Group’s historic accounting under ASC 605. Under ASC 605, advertising-for-advertising advertising-for-advertising Under ASC 606, revenues are recognized when control of the promised goods or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The recognition of revenues involves certain management judgments, including estimated lives of virtual items purchased by game players, the estimation of the fair value of an advertising-for-advertising licensed-out The following table presents the Group’s revenues disaggregated by products and services: Year Ended December 31, 2017 (in thousands) Sohu Sogou Changyou Total Brand advertising: Sohu Media Portal $ 152,015 0 0 152,015 Sohu Video 79,756 0 0 79,756 Focus 57,245 0 0 57,245 17173.com Website 0 0 25,096 25,096 Search and search related advertising 0 801,199 0 801,199 Online games: PC games 0 0 239,149 239,149 Mobile games 0 0 208,355 208,355 Other games 0 0 2,029 2,029 Others 83,758 106,807 14,180 204,745 Total $ 372,774 908,006 488,809 1,769,589 Year Ended December 31, 2018 (in thousands) Sohu Sogou Changyou Total Brand advertising: Sohu Media Portal $ 127,348 0 0 127,348 Sohu Video 53,756 0 0 53,756 Focus 31,144 0 0 31,144 17173.com Website 0 0 19,697 19,697 Search and search related advertising 0 1,022,456 0 1,022,456 Online games: PC games 0 0 236,743 236,743 Mobile games 0 0 151,737 151,737 Other games 0 0 1,308 1,308 Others 61,975 100,589 6,074 168,638 Total $ 274,223 1,123,045 415,559 1,812,827 Year Ended December 31, 2019 (in thousands) Sohu Sogou Changyou Total Brand advertising: Sohu Media Portal $ 94,497 0 0 94,497 Sohu Video 34,529 0 0 34,529 Focus 32,120 0 0 32,120 17173.com Website 0 0 13,715 13,715 Search and search related advertising 0 1,072,860 0 1,072,860 Online games: PC games 0 0 267,752 267,752 Mobile games 0 0 172,718 172,718 Other games 0 0 432 432 Others 57,080 98,981 763 156,824 Total $ 218,226 1,171,841 455,380 1,845,447 As noted above, in accordance with the modified retrospective method upon adoption of ASC 606, amounts for 2017 were not adjusted. Online Advertising Revenues Online advertising revenues include revenues from brand advertising services as well as search and search-related advertising services. Certain customers may receive sales rebates, which are accounted for as variable consideration. The Group estimates annual the expected revenue volume from each agent with reference to its historical results. Sales rebates will reduce revenues recognized. The Group recognizes revenue for the amount of fees it receives from its advertisers, after deducting sales rebates and net of value-added tax (“VAT”). The Group believes that there will not be significant changes to its estimates of variable consideration. Brand Advertising Revenues Revenue Recognition of Multiple Performance Obligations The Group’s contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenues to each performance obligation based on its relative standalone selling price. The Group generally determines the standalone selling price of each distinct performance obligation based on the prices charged to customers when sold on a standalone basis. Where a standalone selling price is not directly observable, the Group generally estimates the selling price based on the prices at which performance obligations of a similar nature and geography are charged to customers. Most of such contracts have all performance obligations completed within the same quarter. Pricing Model Through mobile devices and PCs , the Group provides advertisement placements to its advertisers on different Internet platforms and in different formats, which include banners, links, logos, buttons, full screen, pre-roll, mid-roll, in-feed Currently the Group has three main types of pricing models, consisting of the Fixed Price model, the Cost Per Impression (“CPM”) model and the Cost Per Click (“CPC”) model. (i) Fixed Price model Under the Fixed Price model, a contract is signed to establish a fixed price for the advertising services to be provided. Given that the advertisers benefit from displayed advertisements evenly over the period the advertisements are displayed, the Group recognizes revenue on a straight-line basis over the period of display, provided all revenue recognition criteria have been met. (ii) CPM model Under the CPM model, the unit price for each qualifying display is fixed and stated in the contract with the advertiser. A qualifying display is defined as the appearance of an advertisement, where the advertisement meets criteria specified in the contract. Given that the fees are priced consistently throughout the contract and the unit prices are fixed in accordance with the Group’s pricing practices for similar advertisers, the Group recognizes revenue based on the fixed unit prices and the number of qualifying displays upon their occurrence, provided all revenue recognition criteria have been met. (iii) CPC model Under the CPC model, there is no fixed price for advertising services stated in the contract with the advertiser and the unit price for each click is auction-based. The Group charges advertisers on a per-click Search and Search-related Advertising Revenues Search and search-related services consist primarily of search and search-related advertising services offered by Sogou. Pay-for-click Pay for click services enable advertisers’ promotional links to be displayed on Sogou search result pages and other Internet properties and third parties’ Internet properties where the links are relevant to the subject and content of searches and such properties. For pay-for-click per-click pay-for-click pay-for-click per-click Other Online Advertising Services Other online advertising services mainly consist of displaying advertisers’ promotional links on Sogou’s Internet properties. For time-based advertising services, Sogou’s performance obligation is satisfied over time when the advertising links are displayed over the contract periods, and therefore revenue is normally recognized on a straight-line basis over the contracted display period. For performance-based advertising services, for example, advertisers are charged based on the times that users download from the displayed links, Sogou’s performance obligation is satisfied at the point in time when the promised performance is completed, and the revenue is recognized upon the completion of the promised performance. Sogou’s online advertising services expand distribution of advertisers’ promotional links and advertisements by leveraging traffic on third parties’ Internet properties, including Web content, software, and mobile applications. Sogou is the principal in such arrangement because its promise to advertisers is to provide the advertising services itself rather than to arrange for the advertising services to be provided by third parties on their Internet properties. Payments made to operators of third-party Internet properties are included in the traffic acquisition costs. Online Game Revenues Changyou’s online game revenues are generated primarily from its self-operated and licensed-out in-game Changyou is the principal of its self-operated games. Changyou hosts the games on its own servers and is responsible for the sale and marketing of the games as well as customer service. Accordingly, revenues are recorded gross of revenue sharing-payments to third-party developers and/or mobile APP stores, but net of VAT and discounts to game card distributors where applicable. Changyou obtains revenues from the sale of in-game PC Games Proceeds from Changyou’s self-operated PC games are collected from players and third-party game card distributors through sales of Changyou’s game points on its online payment platform and prepaid game cards. Changyou’s self-operated PC games are either developed in house or licensed from third-party developers. For licensed PC games, Changyou remits a pre-agreed Mobile Games Self-operated Mobile Games For self-operated mobile games, Changyou sells game points to its game players via third-party mobile APP stores. The mobile APP stores in turn pay Changyou proceeds after deducting their share of pre-agreed Changyou’s self-operated mobile games are either developed in house or licensed from or jointly developed with third-party developers. For licensed and jointly-developed mobile games, Changyou remits a pre-agreed Licensed Out Mobile Games Changyou also authorizes third parties to operate its mobile games. Licensed out games include mobile games developed in house, such as Changyou’s mobile game Legacy TLBB Mobile, and mobile games jointly developed with third-party developers. Changyou receives monthly revenue-based royalty payments from the third-party licensee operators. Changyou receives additional up-front pre-agreed Other Revenues Sohu Other revenues attributable to Sohu consist primarily of revenues from paid subscription services, interactive broadcasting services, and sub-licensing Sogou Other revenues attributable to Sogou are IVAS revenues, which are mainly from the operation of Web games and mobile games developed by third parties, and revenues from other products and services, including smart hardware products and online lending and microcredit services. Other revenues are generally recognized when Sogou’s performance obligations under the applicable agreements have been satisfied, except for interest revenues from Sogou’s online lending and microcredit services, which are recognized using the effective interest method. Changyou Other revenues attributable to Changyou are primarily from IVAS. As of August 12, 2019, the Sohu Group ceased consolidating Changyou’s cinema advertising business in its consolidated financial statements and, accordingly, the financial results of the cinema advertising business are excluded from the Sohu Group’s results from continuing operations and are presented in separate line items as discontinued operations in the consolidated financial statements, and retrospective adjustments to the Sohu Group’s historical audited consolidated financial statements have been made in order to provide a consistent basis of comparison. Revenues generated from Changyou’s IVAS were derived primarily from software applications for PCs and mobile devices offered by RaidCall, which ceased operations in March 2019. Prior to March 2018, IVAS revenues also included revenues generated from the Dolphin Browser operated by MoboTap. Revenues from IVAS are recognized during the period the services are rendered or items are consumed under the gross method, as Changyou is the principal obligor for provision of the services. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent amounts invoiced and revenue recognized prior to invoicing, when the Group has satisfied its performance obligations and has the unconditional right to payment. The allowance for doubtful accounts and authorized credits is estimated based upon the Group’s assessment of various factors, including historical experience, the age of the accounts receivable balances, current economic conditions and other factors that may affect the Group’s customers’ ability to pay. Contract assets as of December 31, 2019 were not material. The allowance for doubtful accounts and authorized credits was $16.2 million and $15.1 million, respectively, as of December 31, 2019 and December 31, 2018. Receipts in advance and deferred revenue relate to unsatisfied performance obligations at the end of the period and primarily consist of fees received from game players in the online game business and from advertisers in the search and search-related advertising business. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. The amount of revenue recognized that was included in the receipts in advance and deferred revenue balance at the beginning of the period was $110.2 million for the year ended December 31, 2019. There was no significant change in the contract assets and contract liability balances during 2019. Revenue recognized in 2019 from performance obligations related to prior years was not material. Practical Expedients The Group has used the following practical expedients as allowed under ASC 606: (i) The transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied has not been disclosed, as substantially all of the Group’s contracts have a duration of one year or less. (ii) Payment terms and conditions vary by contract type, although terms generally include a requirement of prepayment or payment within one year or less. In instances where the timing of revenue recognition differs from the timing of invoicing, the Group has determined that its contracts generally do not include a significant financing component. (iii) The Group applied the portfolio approach in determining the commencement date of consumption and the estimated lives of virtual items for the recognition of games revenue, given that the effect of applying a portfolio approach to a group game players’ behaviors would not differ materially from considering each one of them individually. (iv) The Group generally expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within sales and marketing expenses. Cost of Revenues Cost of Online Advertising Revenues Cost of online advertising revenues includes cost of revenues from brand advertising services as well as cost of revenues from search and search-related services. Cost of Brand Advertising Revenues Cost of brand advertising revenues mainly consists of content and license costs, salary and benefits expenses, and bandwidth service costs. For self-developed video content, production costs incurred in excess of the amount of revenue contracted for are expensed as incurred. Cost of Search and Search-related Advertising Revenues Cost of search and search-related advertising revenues mainly consists of traffic acquisition costs, bandwidth service costs, depreciation expenses, salary and benefits expenses, and share-based compensation expense. Traffic acquisition costs represent the most significant portion of cost of revenues. Traffic acquisition costs consist primarily of payments to third parties that direct search queries of the users to Internet properties of Sogou or distribute Sogou advertisers’ promotional links through such third parties’ Internet properties. The traffic acquisitions costs for such arrangements consist primarily of fees that Sogou pays to the third parties based on an agreed-upon unit price and revenue-sharing payments that Sogou makes to such third parties based on an agreed-upon Cost of Online Game Revenues Cost of online game revenues mainly consists of revenue-sharing payments, salary and benefits expenses, bandwidth service costs, content and license costs, tax surcharges, depreciation and amortization expenses, and other direct costs. Cost of Other Revenues Cost of other revenues mainly consists of revenue-sharing payments related to the IVAS business, costs of smart hardware products, revenue-sharing payments related to interactive broadcasting services, and content and license costs related to paid subscription services. Product Development Expenses Product development expenses mainly consist of salary and benefits expenses, content and license costs, technical service fees, facilities expenses, and depreciation and amortization expenses. These expenses are incurred for the enhancement and maintenance of the Sohu Group’s Internet platforms as well as for its products and services. The development costs of online games are expensed as incurred, including the development costs of online games prior to the establishment of technological feasibility and maintenance costs after the online games are available for marketing. Sales and Marketing Expenses Sales and marketing expenses mainly consist of advertising and promotional expenses, salary and benefits expenses, travel and entertainment expenses, and facilities expenses. Advertising and promotional expenses generally represent the expenses of promotions to create or stimulate a positive image of the Sohu Group or a desire to subscribe for the Group’s products and services. Advertising and promotional expenses are expensed as incurred. General and Administrative Expenses General and administrative expenses mainly consist of salary and benefits expenses, bad debts, professional fees, depreciation and amortization expenses, travel and entertainment expenses, and facilities expenses. Share-based Compensation Expense Sohu (excluding Sohu Video), Sogou, Changyou, and Sohu Video have incentive plans for the granting of share-based awards, including share options and restricted share units, to members of the boards of directors, management and other key employees. For share-based awards for which a grant date has occurred, share-based compensation expense is recognized as costs and expenses in the consolidated statements of comprehensive income based on the fair value of the related share-based awards on their grant dates. For share-based awards for which the service inception date precedes the grant date, share-based compensation expense is recognized as costs and expenses in the consolidated statements of comprehensive income beginning on the service inception date and is re-measured Sohu (excluding Sohu Video), Sogou, and Changyou Share-based Awards Sohu (excluding Sohu Video) Share-based Awards In determining the fair value of share options granted by Sohu (excluding Sohu Video) as share-based awards, the public market price of the underlying shares at each reporting date was used, and a binomial valuation model was applied. In determining the fair value of restricted share units granted, the public market price of the underlying shares on the grant dates was applied. Upon the dissolution of Sohu.com Inc. on May 31, 2018, Sohu.com Limited assumed all then existing obligations of Sohu.com Inc. with respect to equity incentive awards that had been granted under Sohu.com Inc.’s Amended and Restated 2010 Stock Incentive Plan (the “Sohu 2010 Stock Incentive Plan”) and remained outstanding, and such awards were converted into the right to receive upon exercise or settlement Sohu.com Limited’s ordinary shares under the Sohu.com Limited 2018 Share Incentive Plan (the “Sohu 2018 Share Incentive Plan”) rather than shares of the common stock of Sohu.com Inc., subject to the other terms of such outstanding awards. Options for the purchase of Sohu.com Limited’s ordinary shares, including options converted from those contractually granted under the Sohu 2010 Stock Incentive Plan, are subject to vesting in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and certain subjective performance targets. Under ASC 718-10-25, 718-10-55, re-measured Sogou Share-based Awards In determining the fair value of share options granted by Sogou as share-based awards, a binomial valuation model was applied. The determination of the fair value is affected by the fair value of the ordinary shares as well as assumptions regarding a number of complex and subjective variables, including risk-free interest rates, exercise multiples, expected forfeiture rates, expected share price volatility rates, and expected dividends. Before the completion of Sogou’s IPO, the fair values of the ordinary shares were assessed using the income approach/discounted cash flow method or based on the mid-point After the completion of Sogou’s IPO, the fair values of the ordinary shares were determined based on the trading price of Sogou’ ADSs in the public market. Before Sogou’s adoption of ASU 2018-07 non-employees ASC 505-50 non-employees 2018-07, non-employees Changyou Share-based Awards In determining the fair value of ordinary shares and restricted share units granted by Changyou as share-based awards in 2008, the income approach/discounted cash flow method with a discount for lack of marketability was applied, given that the shares underlying the awards were not publicly traded at the time of grant. Changyou’s 2008 Share Incentive Plan expired in August 2018 and is no longer available for granting new share-based awards. In determining the fair value of restricted share units granted after Changyou’s IPO, the public market price of the underlying shares on the grant dates was applied. Options for the purchase of Changyou Class A ordinary shares contractually granted under the Changyou 2014 Share Incentive Plan and the Changyou 2019 Share Incentive Plan are subject to vesting in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and certain subjective performance targets. Under ASC 718-10-25, 718-10-55, re-measured Compensation Expense Recognition For options and restricted share units granted with respect to Sohu (excluding Sohu Video) shares and Changyou shares, compensation expense is recognized on an accelerated basis upon the requisite service period and certain subjective performance targets being met. For share options granted with respect to Sogou shares, compensation expense is recognized over the estimated period during which the service period requirement and performance target will be met, which is usually within one year, or, after the performance target of Sogou’s completion of an IPO was met upon the completion of Sogou’s IPO on November 13, 2017, on an accelerated basis over the requisite service period, or, for options with only service period requirement, on an accelerated basis over the requisite service period. For Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search and search-related businesses, compensation expense is recognized by Sogou on an accelerated basis over the requisite service period, and the fair value of the share-based compensation is re-measured Sohu Video Share-based Awards On January 4, 2012, Sohu Video, the holding entity of Sohu’s video division, adopted a 2011 Share Incentive Plan (the “Video 2011 Share Incentive Plan”) which provides for the issuance of up to 25,000,000 ordinary shares of Sohu Video (representing approximately 10% of the outstanding Sohu Video shares on a fully-diluted basis) to management and key employees of the video division and to Sohu management. As of December 31, 2019, grants of options for the purchase of 16,368,200 ordinary shares of Sohu Video had been contractually made, of which options for the purchase of 4,972,800 ordinary shares were vested. For purposes of ASC 718-10-25, 718-10-55, re-measured, re-measure, Taxation PRC Corporate Income Tax Income taxes are accounted for using an asset and liability approach which requires the recognition of income 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 the Group’s financial statements or tax returns. Deferred income taxes are determined based on the differences between the accounting basis and the tax basis of assets and liabilities and are measured using the currently enacted tax rates and laws. Deferred tax assets are reduced by a valuation allowance, if based on available evidence, it is considered that it is more likely than not that some portion of or all of the deferred tax assets will not be realized. In making such determination, the Group considers factors including future reversals of existing taxable temporary differences, future profitability, and tax planning strategies. If events were to occur in the future that would allow the Group to realize more of its deferred tax assets than the presently recorded net amount, an adjustment would be made t |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations Disclosure | 3. DISCONTINUED OPERATIONS In May 2010, Changyou acquired 50% of the equity interests in Shanghai Jingmao Culture Communication Co., Ltd. (“Shanghai Jingmao”) and an affiliate of Shanghai Jingmao, which were primarily engaged in the cinema advertising business. In January 2011, Changyou acquired the remaining 50% of the equity interests in Shanghai Jingmao and its affiliate for total consideration of approximately $3.0 million. In the fourth quarter of 2011, a full impairment loss of $5.2 million on goodwill was recognized for the cinema advertising business. During the second quarter of 2019, after assessing the collectability of the assets of the cinema advertising business, including receivables and prepayments, Changyou recognized a $17.0 million asset impairment charge for the cinema advertising business. Changyou ceased operating the cinema advertising business and wound down the business in August 2019 as a result of a Chinese court in Shanghai having granted a petition by Shanghai Jingmao for bankruptcy relief on August 12, 2019. Accordingly, the results of operations for Changyou’s cinema advertising business have been excluded from Changyou’s results from continuing operations in the condensed consolidated statements of operations and are presented in separate line items as discontinued operations. Retrospective adjustments to the historical statements have been made in order to provide a consistent basis of comparison. Additionally, as of December 31, 2018, the related assets and liabilities associated with the discontinued operations were classified as assets/liabilities associated with discontinued operations in the consolidated balance sheets to provide comparable financial information. Changyou recognized $nil disposal gain/loss for the year ended December 31, 2019. However, Changyou may recognize disposal gain/loss in the future, depending on developments in the bankruptcy proceedings in the Chinese court. The following tables set forth the assets, liabilities, results of operations and cash flows of discontinued operations, that were included in the Group’s consolidated financial statements (in thousands): As of December 31, 2018 ASSETS Current assets: Cash and cash equivalents 229 Restricted cash 2,435 Accounts receivable, net 16,761 Prepaid and other current assets 14,899 Total current assets associated with discontinued operations 34,324 Non-current Fixed assets, net 351 Intangible assets, net 47 Total non-current 398 Total assets associated with discontinued operations 34,722 LIABILITIES Current liabilities: Payable to Changyou 72,319 Accounts payable 9,210 Receipts in advance and deferred revenue 4,378 Accrued salary and benefits 4,888 Accrued liabilities to suppliers 9,632 Tax payables 496 Other short-term liabilities 182 Total current liabilities associated with discontinued operations 101,105 Total liabilities associated with discontinued operations 101,105 Year Ended December 31, 2017 2018 2019 (1) Revenues $ 91,419 $ 70,202 $ 37,323 Cost of revenues 84,944 89,233 43,857 Gross profit 6,475 (19,031 ) (6,534 ) Operating expenses: Sales and marketing 22,622 20,288 8,807 General and administrative 3,833 4,965 18,583 Total operating expenses 26,455 25,253 27,390 Operating profit (19,980 ) (44,284 ) (33,924 ) Interest income 0 6 7 Other income /(expense), net (39 ) (557 ) 61 Income before income tax expense (20,019 ) (44,835 ) (33,856 ) Income tax expense 512 0 142 Net loss from discontinued operations, net of tax (20,531 ) (44,835 ) (33,998 ) Year Ended December 31, 2017 2018 2019 (1) Net cash provided by discontinued operating activities $ 1,062 $ 3,422 $ 9,341 Net cash provided used in discontinued investing activities (954 ) (718 ) (10,808 ) Net cash provided by/(used in) discontinued financing activities 0 0 0 Note (1): Includes the financial results of the discontinued operations from January 1, 2019 to August 12, 2019. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENT INFORMATION [Abstract] | |
Segment Information | 4. SEGMENT INFORMATION The Sohu Group’s segments are business units that offer different services and are reviewed separately by the CODM, or the decision making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM is the Company’s Chief Executive Officer. There are three segments in the Group, consisting of the Sohu segment, the Sogou segment, and the Changyou segment. The following tables present summary information by segment (in thousands): Year Ended December 31, 2017 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 374,696 $ 908,357 $ 488,842 $ (2,306 ) $ 1,769,589 Segment cost of revenues (414,526 ) (456,861 ) (78,769 ) 86 (950,070 ) Segment gross profit (39,830 ) 451,496 410,073 (2,220 ) 819,519 SBC (2) in cost of revenues 415 (540 ) (73 ) 0 (198 ) Gross profit (39,415 ) 450,956 410,000 (2,220 ) 819,321 Operating expenses: Product development (3) (113,590 ) (156,359 ) (124,869 ) 6,192 (388,626 ) Sales and marketing (1) (3) (199,304 ) (152,121 ) (37,083 ) 4,000 (384,508 ) General and administrative (3) (44,563 ) (25,407 ) (33,385 ) 130 (103,225 ) Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions 0 0 (86,882 ) 0 (86,882 ) SBC (2) in operating expenses (765 ) (27,193 ) (17,320 ) 0 (45,278 ) Total operating expenses (358,222 ) (361,080 ) (299,539 ) 10,322 (1,008,519 ) Operating profit /(loss) (397,637 ) 89,876 110,461 8,102 (189,198 ) Other income /(expense) (3) 4,694 692 9,413 (8,102 ) 6,697 Interest income (4) 7,344 9,126 32,319 (24,651 ) 24,138 Interest expense (4) (24,367 ) 0 (4,372 ) 24,651 (4,088 ) Exchange difference (2,107 ) (7,082 ) (5,196 ) 0 (14,385 ) Income /(loss) before income tax expense (412,073 ) 92,612 142,625 0 (176,836 ) Income tax expense (217,959 ) (14,422 ) (40,255 ) 0 (272,636 ) Net income /(loss) from continuing operations (630,032 ) 78,190 102,370 0 (449,472 ) Net loss from discontinued operations 0 0 (20,531 ) 0 (20,531 ) Net income /(loss) $ (630,032 ) $ 78,190 $ 81,839 $ 0 $ (470,003 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou, and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): The elimination represents interest income/ (expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. Year Ended December 31, 2018 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 274,670 $ 1,124,158 $ 415,561 $ (1,562 ) $ 1,812,827 Segment cost of revenues (218,184 ) (692,801 ) (71,626 ) 56 (982,555 ) Segment gross profit 56,486 431,357 343,935 (1,506 ) 830,272 SBC (2) in cost of revenues 707 (669 ) 31 0 69 Gross profit 57,193 430,688 343,966 (1,506 ) 830,341 Operating expenses: Product development (3) (123,743 ) (191,426 ) (126,593 ) 6,733 (435,029 ) Sales and marketing (1) (3) (203,307 ) (144,867 ) (34,512 ) 2,801 (379,885 ) General and administrative (3) (48,664 ) (36,177 ) (28,657 ) 362 (113,136 ) Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions 0 0 (16,369 ) 0 (16,369 ) SBC (2) in operating expenses 4,940 (13,535 ) 6,430 0 (2,165 ) Total operating expenses (370,774 ) (386,005 ) (199,701 ) 9,896 (946,584 ) Operating profit /(loss) (313,581 ) 44,683 144,265 8,390 (116,243 ) Other income /(expense) (3) 345,416 41,489 23,436 (345,617 ) 64,724 Interest income (4) 14,001 8,037 34,403 (32,367 ) 24,074 Interest expense (4) (39,709 ) 0 (10,197 ) 32,368 (17,538 ) Exchange difference 1,981 5,725 1,320 0 9,026 Income /(loss) before income tax expense 8,108 99,934 193,227 (337,226 ) (35,957 ) Income tax benefit /(expense) 79,053 (1,153 ) (64,467 ) 0 13,433 Net income /(loss) from continuing operations 87,161 98,781 128,760 (337,226 ) (22,524 ) Net loss from discontinued operations 0 0 (44,835 ) 0 (44,835 ) Net income /(loss) $ 87,161 $ 98,781 $ 83,925 $ (337,226 ) $ (67,359 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou, and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of the distribution by Changyou of a dividend to Sohu in 2018 and leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): The elimination represents interest income /(expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. Year Ended December 31, 2019 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 218,442 $ 1,172,252 $ 455,380 $ (627 ) $ 1,845,447 Segment cost of revenues (148,258 ) (737,981 ) (95,268 ) 28 (981,479 ) Segment gross profit 70,184 434,271 360,112 (599 ) 863,968 SBC (2) in cost of revenues (23 ) (473 ) (120 ) 0 (616 ) Gross profit 70,161 433,798 359,992 (599 ) 863,352 Operating expenses: Product development (3) (113,762 ) (179,705 ) (119,726 ) 6,142 (407,051 ) Sales and marketing (1) (3) (155,226 ) (134,565 ) (49,768 ) 2,117 (337,442 ) General and administrative (3) (32,218 ) (39,665 ) (22,074 ) 358 (93,599 ) Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions (7,245 ) 0 0 0 (7,245 ) SBC (2) in operating expenses (1,022 ) (15,428 ) (1,185 ) 0 (17,635 ) Total operating expenses (309,473 ) (369,363 ) (192,753 ) 8,617 (862,972 ) Operating profit /(loss) (239,312 ) 64,435 167,239 8,018 380 Other income /(expense) (3) 331,599 21,126 14,477 (345,254 ) 21,948 Interest income (4) 24,361 4,443 39,441 (57,699 ) 10,546 Interest expense (4) (46,730 ) 0 (25,339 ) 57,699 (14,370 ) Exchange difference (445 ) 1,849 1,875 0 3,279 Income /(loss) before income tax expense 69,473 91,853 197,693 (337,236 ) 21,783 Income tax benefit /(expense) (8,351 ) (2,748 ) (20,077 ) 0 (31,176 ) Net income /(loss) from continuing operations 61,122 89,105 177,616 (337,236 ) (9,393 ) Net loss from discontinued operations 0 0 (33,998 ) 0 (33,998 ) Net income /(loss) $ 61,122 $ 89,105 $ 143,618 $ (337,236 ) $ (43,391 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou, and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of the distribution by Changyou of a dividend to Sohu in 2019 and leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): The elimination represents interest income /(expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. As of December 31, 2018 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 180,005 $ 185,175 $ 454,305 $ 0 $ 819,485 Account and financing receivables, net 78,383 145,401 40,627 0 264,411 Fixed assets, net 186,756 147,495 170,396 0 504,647 Total assets (1) $ 1,319,490 $ 1,462,844 $ 2,037,803 $ (1,449,290 ) $ 3,370,847 Note (1): The elimination for segment assets mainly consists of elimination of intra-Group loans between Sohu and Changyou, and elimination of long-term investments in subsidiaries and consolidated VIEs. As of December 31, 2019 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 68,229 $ 142,464 $ 94,433 $ 0 $ 305,126 Account and financing receivables, net 70,252 134,635 55,829 0 260,716 Fixed assets, net 177,978 110,006 159,713 (9 ) 447,688 Total assets (1) $ 1,721,801 $ 1,522,402 $ 1,871,685 $ (2,426,098 ) $ 2,689,790 Note (1): The elimination for segment assets mainly consists of elimination of intra-Group loans between Sohu and Changyou, and elimination of long-term investments in subsidiaries and consolidated VIEs. |
Share-based Compensation Expens
Share-based Compensation Expense | 12 Months Ended |
Dec. 31, 2019 | |
SHARE-BASED COMPENSATION EXPENSE [Abstract] | |
Share-based Compensation Expense | 5. SHARE-BASED COMPENSATION EXPENSE Sohu (excluding Sohu Video), Sogou, Changyou, and Sohu Video have incentive plans for the granting of share-based awards, including share options and restricted share units, to members of the boards of directors, management and other key employees. Share-based compensation expense was recognized in costs and expenses for the years ended December 31, 2017, 2018 and 2019 as follows (in thousands): Year Ended December 31, Share-based compensation expense 2017 2018 2019 Cost of revenues $ 198 $ (69 ) $ 615 Product development expenses 23,547 6,131 12,063 Sales and marketing expenses 5,915 405 3,398 General and administrative expenses 15,817 (4,372 ) 2,175 $45,477 $2,095 $18,251 Share-based compensation expense was recognized for share awards of Sohu (excluding Sohu Video), Sogou, Changyou and Sohu Video as follows (in thousands): Year Ended December 31, Share-based compensation expense 2017 2018 2019 For Sohu (excluding Sohu Video) share-based awards $ 652 $ (5,100 ) $ 1,940 For Sogou share-based awards (1) 27,729 14,204 15,901 For Changyou share-based awards 17,394 (6,461 ) 1,305 For Sohu Video share-based awards (298 ) (548 ) (895 ) $45,477 $2,095 $18,251 The negative amounts in the tables above resulted from re-measured Note (1): For the years ended December 31, 2017 and 2018, compensation expense for Sogou share-based awards also included compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search and search-related businesses. All of such restricted share units vested before January 1, 2019. There was no capitalized share-based compensation expense for the years ended December 31, 2019, 2018 and 2017. |
Advertising and Promotional Exp
Advertising and Promotional Expenses, included in Sales and Marketing Expenses | 12 Months Ended |
Dec. 31, 2019 | |
ADVERTISING AND PROMOTIONAL EXPENSES, INCLUDED IN SALES AND MARKETING EXPENSES [Abstract] | |
Advertising and Promotional Expenses, included in Sales and Marketing Expenses | 6. ADVERTISING AND PROMOTIONAL EXPENSES, INCLUDED IN SALES AND MARKETING EXPENSES Advertising and promotional expenses are included in sales and marketing expenses, and generally represent the expenses of promotions to create or stimulate a positive image of the Sohu Group or a desire to subscribe for the GroupÂ’s products and services. Advertising expenses are expensed as incurred. For the years ended December 31, 2019, 2018 and 2017, advertising and promotional expenses recognized in the consolidated statements of comprehensive income were $211.1 million, $238.7 million and $248.9 million, respectively. |
Other Income _(Expense), net
Other Income /(Expense), net | 12 Months Ended |
Dec. 31, 2019 | |
OTHER INCOME /(EXPENSE), NET [Abstract] | |
Other Income /(Expense), net | 7. OTHER INCOME /(EXPENSE), NET The following table summarizes the Sohu Group’s other income /(expense) (in thousands): Year Ended December 31, 2017 2018 2019 Gain from the changes in fair value of financial instruments (1) 6,665 40,054 41,014 Government grant 2,160 5,428 6,386 Investment income /(expense) (2) (2,051 ) 14,565 3,004 Donations (218 ) (70 ) (754 ) Write-off of unpaid long-term accounts payable 2,031 0 0 Impairment loss on available-for-sale (5,754 ) 0 0 Impairment loss on equity investments (4) 0 (2,605 ) (34,119 ) Others 3,864 7,352 6,417 $6,697 $ 64,724 $ 21,948 Note (1): The increase for 2018 compared to 2017 mainly consisted of $33.4 million in income earned from investments in financial instruments. Note (2): The increase for 2018 compared to 2017 mainly consisted of $17.8 million in investment income recognized in the third quarter of 2018 by Sogou due to the observable change in the price of Zhihu Technology Limited (“Zhihu”) after the adoption of ASU 2016-01, Note (3): Before the adoption of ASU 2016-01, available-for-sale Note (4): In the fourth quarter of 2019, the Sohu Group recognized impairment losses of $34.1 million for equity investments. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2019 | |
BALANCE SHEET COMPONENTS [Abstract] | |
Balance Sheet Components | 8. BALANCE SHEET COMPONENTS (IN THOUSANDS) As of December 31, 2018 2019 Account and financing receivables, net Accounts receivable $ 233,258 210,069 Financing receivables 46,238 66,858 Allowance for doubtful accounts and credit losses (15,085 ) (16,211 ) $ 264,411 260,716 The following table presents the movement of allowances for doubtful accounts and credit losses for the years of 2017, 2018 and 2019: Balance at the Additional provision Write-offs Exchange Balance at the 2017 4,274 8,891 (8,634 ) 340 4,871 2018 4,871 14,568 (3,848 ) (506 ) 15,085 2019 15,085 20,344 (19,978 ) 760 16,211 As of December 31, 2018 2019 Prepaid and other current assets Matching loan due from a related party (See Note 9) $ 31,607 $ 33,329 Prepaid taxes 29,452 30,068 Receivables from third-party payment service providers 14,012 14,221 Prepaid content and license 30,033 13,330 Prepaid cost of revenue 3,568 8,343 Inventory 12,657 4,186 Receivables from third party payment platforms 8,844 3,435 Prepaid rental deposit 4,978 3,113 Interest receivable from bank deposits with original maturities of three months or less 3,645 2,264 Employee advances 2,259 1,693 Prepaid office rent and facilities expenses 2,886 735 Due from discontinued associated company (1) 72,337 0 Others 9,466 9,615 $ 225,744 $124,332 Note (1): As of December 31, 2018, Changyou had a receivable of $72,319 due from a discontinued associated company. In 2019, Changyou estimated an allowance of $72,319 for the receivable, which potentially might not be collected upon the liquidation of the discontinued associated company. Changyou will continually assess the allowance based on developments in bankruptcy proceedings with respect to the discontinued company in a Chinese court. Prepaid non-current Prepaid PRC income tax for the sale of assets associated with 17173.com by Sohu to Changyou $ 2,870 $ 1,882 Others 237 0 $ 3,107 $ 1,882 Other short-term liabilities Contract deposits from advertisers $ 40,073 $ 34,459 Matching loans due to a related party (See Note 9) 32,719 33,536 Contingent liability related to Shanghai Jingmao liquidation (1) 0 23,900 Deposits related to Focus 21,648 19,101 Lease liabilities 0 8,616 Payable to a third-party investor in the Consolidated Trust 0 8,601 Depository payable reimbursement 4,985 3,697 Early exercise of Sogou share options for trust arrangements 2,702 2,702 Accrued liabilities to suppliers 3,288 2,209 Consideration payable for equity investment 5,960 740 Others 12,546 11,750 $ 123,921 $ 149,311 Note (1): The contingent liability represents the aggregate of estimated potential payments to third parties in connection with the liquidation of Shanghai Jingmao. The stated amount of the contingent liability reflects ChangyouÂ’s best estimate as of December 31, 2019 pursuant to ASC 450-20. Receipts in advance and deferred revenue Receipts in advance relating to: brand advertising business $ 10,069 $ 7,097 search and search-related business 65,465 67,756 online game business 14,635 5,524 other business 3,602 6,490 Total receipts in advance 93,771 86,867 Deferred revenue 26,633 31,355 $120,404 $118,222 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Related Party Transactions | 9. RELATED PARTY TRANSACTIONS Under an agreement between Sohu and Fox Financial Technology Group Limited (“Fox Financial,” formerly known as “SoEasy Internet Finance Group Limited”) entered into in August 2014, Sohu invested $4.8 million and $16.1 million, respectively, in Fox Financial in August 2014 and April 2015. In February 2016, Sohu invested an additional $10.5 million in Fox Financial. Changyou’s Loan Arrangements with Fox Financial Commencing in April 2015, certain subsidiaries of Changyou and certain subsidiaries of Fox Financial entered into a series of loan agreements pursuant to which the subsidiaries of Changyou were entitled to draw down HK dollar-denominated or U.S. dollar-denominated loans from the Fox Financial subsidiaries and the Fox Financial subsidiaries were entitled to draw down equivalent RMB-denominated In December 2018 and 2019, Changyou entered into supplemental agreements with Fox Financial pursuant to which all accrued and unpaid interest on the loans as of December 31, 2018 and December 31, 2019 was added to the principal of the corresponding loans. Due to the depreciation of the RMB against the U.S. dollar in 2018, the principal amounts of the Changyou’s outstanding RMB-denominated RMB-denominated In December 2019, Changyou entered into a supplemental agreement with Fox Financial which states that Fox Financial undertakes and agrees to provide to Changyou a guaranty of the repayment obligation of Fox Financial and to deposit an amount equal to the US dollar denominated loan principal and corresponding interest owed by Changyou to Fox Financial as a security deposit. If Fox Financial fails to repay the loan principal and corresponding interest based on RMB owed to Changyou, then the security deposit will be applied to repayment of the loan principal and corresponding interest owed to Changyou. The security deposit will be required to be replenished by Fox Financial if it is insufficient to repay the loan principal and corresponding interest of the RMB denominated loan owed to Changyou, and any remaining surplus after the repayment of the RMB denominated loan principal and interest will be returned to Fox Financial. The parties entered into an additional supplemental agreement, in which Changyou undertakes and agrees to provide to Fox Financial a guaranty of Changyou’s repayment obligation and to deposit an amount equal to the RMB denominated loan principal and corresponding interest owed by Fox Financial to Changyou as a security deposit. If Changyou fails to repay the loan principal and corresponding interest, then the security deposit will be applied to repayment of the loan principal and corresponding interest owed to Fox Financial. The security deposit will be required to be replenished by Changyou if it is insufficient to repay the loan principal and corresponding interest to Fox Financial, and the remaining security deposit (if any) will be returned to Changyou if there is any surplus after the repayment of the US dollar denominated loan principal and interest. As of December 31, 2018 and December, 2019, Changyou had U.S. dollar-denominated loans payable to Fox Financial in a total amount of approximately $32.7 million and $33.5 million, respectively, and RMB-denominated |
Intra-Group Loan and Share Pled
Intra-Group Loan and Share Pledge Agreement | 12 Months Ended |
Dec. 31, 2019 | |
INTRA-GROUP LOAN AND SHARE PLEDGE AGREEMENT [Abstract] | |
Intra-Group Loan and Share Pledge Agreement | 10. INTRA-GROUP LOAN AND SHARE PLEDGE AGREEMENT On October 24, 2016, Sohu Media, a subsidiary of the Company, entered into a loan agreement (the “Loan Agreement”) with AmazGame, a subsidiary of Changyou, pursuant to which Sohu Media may borrow from time to time from AmazGame up to RMB1.0 billion (or approximately $148.6 million). Principal amounts outstanding under the Loan Agreement bear interest at an annual rate of 6%. The outstanding principal of each advance will be due one year from the date of the advance, subject to extension for an additional year with the consent of AmazGame. On October 24, 2016, the Company’s indirect wholly-owned subsidiary Sohu.com (Game) Limited (“Sohu Game”) and Changyou entered into a share pledge agreement (the “Share Pledge Agreement”) pursuant to which Sohu Game pledged to Changyou Class B ordinary shares of Changyou held by Sohu Game. As of December 31, 2019, the number of Class B ordinary shares pledged by Sohu Game to Changyou was 43,823,946. On January 13, 2020, in connection with the organization of Changyou Merger Co. Limited (“Changyou Merger Co.”) as a wholly-owned subsidiary of Sohu Game for purposes of the Changyou Merger, Sohu Game transferred to Changyou Merger Co. all of the issued and outstanding Changyou Class B ordinary shares held by Sohu Game, including the Changyou Class B ordinary shares subject to the Sohu Share Pledge Agreement. Simultaneously with that contribution, the Sohu Share Pledge Agreement was revised to substitute Changyou Merger Co. as the pledgor in place of Sohu Game. Prior to April 17, the effectiveness of the Changyou Merger, Changyou executed and delivered to Changyou Merger Co. a Deed of Release providing for the release and discharge of Changyou Merger Co. from all obligations under the Share Pledge Agreement. In December 2016, March 2017 and April 2017, Sohu Media received RMB500.0 million (or approximately $72.1 million), RMB200.0 million (or $30.6 million) and RMB300.0 million (or $45.9 million), respectively, from AmazGame. As of December 31, 2017, the total outstanding balance of the loan was RMB1.0 billion (or $153.0 million). In January 2018, Sohu Media entered into a supplementary agreement with AmazGame and Video Tianjin, a subsidiary of the Company, pursuant to which Sohu Media assigned and transferred the entire principal amount outstanding and all the related rights and obligations under the Loan Agreement to Video Tianjin. In both December 2018 and December 2019, Video Tianjin and AmazGame entered into agreements extending the due date of each advance for an additional year. As of December 31, 2018 and December 31, 2019, the total outstanding balance of the loan was RMB1.0 billion (or $145.7 million) and RMB1.0 billion (or $143.3 million), respectively. The intra-Group loan has been eliminated upon consolidation. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Fair Value Measurements | 11. FAIR VALUE MEASUREMENTS Fair Value of Financial Instruments U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is: Level 1 - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - include other inputs that are directly or indirectly observable in the market place. Level 3 - unobservable inputs which are supported by little or no market activity. The Sohu Group’s financial instruments consist primarily of cash equivalents, restricted cash, short-term investments, accounts receivable, financing receivables, prepaid and other current assets, long-term investments, restricted time deposits, accounts payable, accrued liabilities, receipts in advance and deferred revenue, short-term bank loans, other short-term liabilities, long-term bank loans and long-term accounts payable. Financial Instruments Measured at Fair Value The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy, as of December 31, 2018 (in thousands): Fair value measurements at reporting date using Items As of Quoted Prices Significant Significant Cash equivalents $ 595,703 $ 0 $ 595,703 $ 0 Short-term investments 1,041,395 0 1,041,395 0 Restricted time deposits 244,179 0 244,179 0 Equity investments with readily determinable fair values 6,790 6,790 0 0 The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy, as of December 31, 2019 (in thousands): Fair value measurements at reporting date using Items As of Quoted Prices Significant Significant Cash equivalents $ 219,977 $ 0 $ 219,977 $ 0 Short-term investments 1,316,833 0 1,316,833 0 Restricted time deposits 240 0 240 0 Equity investments with readily determinable fair values 9,320 9,320 0 0 Cash Equivalents The Sohu Group’s cash equivalents mainly consist of time deposits with original maturities of three months or less, notice deposits, and highly liquid investments that are readily convertible to known amounts of cash. The fair values of cash equivalents are determined based on the pervasive interest rates in the market. The Group classifies the valuation techniques that use the pervasive interest rates input as Level 2 of fair value measurements. Generally, there are no quoted prices in active markets for identical cash equivalents at the reporting date. In order to determine the fair value, the Group must use the discounted cash flow method and observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Short-term Investments In accordance with ASC 825, for investments in financial instruments with a variable interest rate indexed to performance of underlying assets, the Sohu Group elected the fair value method at the date of initial recognition and carried these investments at fair value. Changes in the fair value are reflected in the consolidated statements of comprehensive income as other income /(expense). To estimate fair value, the Group refers to the quoted rate of return provided by banks at the end of each period using the discounted cash flow method. The Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. As of December 31, 2019 and December 31, 2018, the Sohu Group’s investment in these financial instruments was $1.3 billion and $1.0 billion, respectively. The investment instruments were issued by commercial banks in China, and have a variable interest rate indexed to performance of underlying assets. Since these investments’ maturity dates are within one year, they are classified as short-term investments. For the years ended December 31, 2019 and 2018, the Sohu Group recorded a gain from changes in the fair value of short-term investments in the amounts of $41.0 million and $40.1 million in the consolidated statements of comprehensive income, respectively. Foreign Exchange Forward Contracts In September 2016 and January 2017, Changyou entered into foreign exchange forward contracts with banks in aggregate notional amounts of $100 million and $50 million, respectively. Changyou entered into such foreign exchange forward contracts in compliance with its risk management policy for the purpose of eliminating the negative impact on earnings and equity resulting from fluctuations in the exchange rate between the U.S. dollar and the RMB. The instruments are marked-to-market period-end In January 2018, Changyou settled the remaining foreign exchange forward contracts with a realized loss of $0.2 million recognized in the consolidated statements of comprehensive income for the year ended December 31, 2018. For the years ended December 31, 2019 and 2018, the Sohu Group recorded cash outflows related to the forward contracts of nil and $0.9 million, respectively, in the consolidated statements of cash flows. As of both December 31, 2019 and 2018, the carrying values of the foreign exchange forward contracts recognized in other short-term liabilities were nil. The Group estimated the fair values of foreign exchange forward contracts using the Black-Scholes model. The fair values of the forward contracts were estimated based on quoted forward exchange prices at the reporting date. The Group classifies the fair value measurement of the forward contracts based on such inputs as Level 2 of fair value measurements. Restricted Time Deposits Restricted time deposits are valued based on the prevailing interest rates in the market using the discounted cash flow method. The Sohu Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. Changyou Loans from Offshore Banks, Secured by Time Deposits In 2018, Changyou drew down loans from the Hong Kong branches of PRC banks, which were secured by an equivalent or greater amount of RMB deposits by Changyou in the PRC branches of the banks. The loans from the Hong Kong branches of the lending banks were classified as short-term or long-term bank loans based on the loans’ payment terms. For the years ended December 31, 2019 and 2018, interest income from the restricted time deposits securing the loans were $0.5 million and $1.0 million, respectively, and expense for interest on the loans was $2.1 million and $1.4 million, respectively. Equity Investments ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, The Group measures equity investments under the equity method and equity investments without readily determinable fair values at fair value on a non-recurring available-for-sale Equity Investments Accounted for Using the Equity Method For investments in common stock or in-substance non-recurring non-recurring Equity Investments with Readily Determinable Fair Values Effective as of January 1, 2018, all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. There will no longer be an available-for-sale Equity investments with readily determinable fair values are valued using the market approach based on the quoted prices in active markets at the reporting date. The Group classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. Equity Investments without Readily Determinable Fair Values Based on ASU 2016-01, If this measurement alternative is elected, changes in the carrying value of the equity investment will be required to be made whenever there are observable price changes in transactions for identical or similar investments of the same issuer. The implementation guidance notes that an entity should make a “reasonable effort” to identify price changes that are known or that can reasonably be known. When observable price changes were identified, the Group used the back-solve method to re-measure non-recurring Short-term Receivables and Payables Accounts receivable and prepaid and other current assets are financial assets with carrying values that approximate fair value due to their short-term nature. Short-term accounts payable, accrued liabilities, receipts in advance and deferred revenue, short-term bank loans and other short-term liabilities are financial liabilities with carrying values that approximate fair value due to their short-term nature. For short-term receivables and payables, the Group estimated fair values using the discounted cash flow method. The Group classifies the valuation technique as Level 2 of fair value measurements. Short-term Bank Loans For short-term bank loans, the rates of interest under the agreements with the lending banks were determined based on the prevailing interest rates in the market. The Sohu Group estimated fair values using the discounted cash flow method and classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. • Factoring contract with recourse with HongKong and Shanghai Banking Corporation Limited (“HSBC”) In May 2017, Sohu entered into a factoring contract with recourse with HSBC, pursuant to which Sohu may borrow from HSBC from time to time up to a combined aggregate of RMB180.0 million (or $26.2 million), which is the upper limit reviewed by HSBC at least annually. The loan is secured by up to RMB198.0 million (or $28.8 million) of Sohu’s accounts receivable and guaranteed by Sohu Media. Interest accrues on the principal amounts of the loans outstanding at an annual rate agreed to by HSBC and Sohu upon drawdown. In June 2019, Sohu terminated the factoring contract with recourse with HSBC, and the accounts receivable of Sohu was released from the pledge. As of both December 31, 2019 and December 31, 2018, the total outstanding balance of the loan was nil. • Credit agreements with Ping An Bank Co., Ltd. (“Ping An Bank”) In May 2017, Sohu entered into credit agreements with Ping An Bank pursuant to which Sohu was entitled to borrow from Ping An Bank from time to time until May 18, 2020 up to a combined aggregate of RMB2.50 billion (or $364.3 million). The loan was initially secured by pledges of Sohu’s two buildings and guaranteed by Sohu Game. The initial interest rate for the loans was an annual rate equal to 115% of the rate published by the PBOC. In July 2017, Sohu entered into an amendment of its loan arrangements with Ping An Bank pursuant to which interest on outstanding principal amounts accrued at a rate designated separately upon each drawdown based on the benchmark loan rate published by the PBOC with reference to then prevailing market interest rates. In July 2017, Sohu drew down from Ping An Bank pursuant to the loan arrangements a loan with a term of 12 months in the amount of RMB400.0 million (or approximately $58.3 million) and an interest rate of 6.525% per annum, which was 150% of the rate published by the PBOC as of the date of the drawdown. In September 2017, Sohu entered into another amendment of its loan arrangements with Ping An Bank pursuant to which the maximum amount that Sohu was entitled to borrow was reduced from RMB2.50 billion (or $364.3 million) to RMB600 million (or $87.4 million), and one of Sohu’s buildings, which serves as Sohu’s corporate headquarters, was released from the pledge. In April 2018, Sohu repaid all of the outstanding balance under the loan arrangements with Ping An Bank and the other building of Sohu was released from the pledge. As of both December 31, 2019 and December 31, 2018, the total outstanding balance of the loan was nil. • In September 2017, Sohu entered into credit agreements with ICBC pursuant to which Sohu was entitled to borrow from ICBC from time to time until March 31, 2018 up to a combined aggregate of RMB800 million (or $116.6 million). The loan is secured by the pledge of Sohu’s building which serves as Sohu’s corporate headquarters in Beijing. Interest accrues on the principal amounts of the loans outstanding at an annual rate equal to the Loan Prime Rate (“LPR”) published by the National Interbank Funding Center, plus 1.2%. The outstanding principal amount of the loan will be payable in four equal installments, with the first installment payable 18 months after the drawdown and the other three installments payable semi-annually at the end of each of the three successive six-month As of December 31, 2019 and December 31, 2018, the total outstanding balance of the loan was RMB400 million (or $57.3 million) and RMB800 million (or $116.6 million), respectively. As of December 31, 2019, RMB400 million (or $57.3 million) was classified as a short-term bank loan based on the loan’s repayment terms. • Credit agreements with the China Merchants Bank Co., Ltd. (“CMB”) In April 2018, Sohu entered into credit agreements with CMB pursuant to which Sohu was entitled to borrow from CMB from time to time until March 22, 2021 up to an aggregate of RMB700 million (or approximately $102.0 million)(the “CMB Loan”). In April, 2018, Sohu made an initial drawdown under the CMB Loan with a term of 12 months in the amount of RMB400 million (or $58.3 million) (the “First Drawdown”). The proceeds of the First Drawdown were used to repay in full the outstanding balance and all accrued and unpaid interest under credit agreements between Sohu and Ping An Bank. The CMB Loan was secured by a pledge of Sohu’s building, which was released from the pledge after Ping An Bank received such repayment. Interest accrued on the outstanding principal balance at a rate of 6% per year. In April 2019, the outstanding principal amount of the First Drawdown was repaid in full. In June, 2018, Sohu made a drawdown under the CMB Loan with a term of 24 months in the amount of RMB300 million (or approximately $43.7 million) (the “Subsequent Drawdown”). Interest accrued on the outstanding principal balance at a rate of 6% per year. The outstanding principal amount of the Subsequent Drawdown was payable in four installments. The first installment of RMB45 million (or $6.7 million) was paid in December 2018; the second and third installments of RMB90 million (or $13.1 million) in the aggregate were paid early in June 2019; and the fourth installment of RMB165 million (or $23.3million) was paid early in July 2019. In April 2019 and May 2019, Sohu made drawdowns under the CMB Loan with a term of 12 months in the aggregate amount of RMB399 million ($59.3 million). Interest accrues on the outstanding principal balances at a rate of 5.1% per year. The outstanding principal amount of each drawdown will be due and payable 12 months after such drawdown. As of December 31, 2019 and December 31, 2018, the total outstanding balance of the CMB loan was RMB399 million (or $57.2 million) and RMB655 million (or $95.4 million), respectively. As of December 31, 2019, RMB399 million (or $57.2 million) was classified as short-term bank loans based on the loan’s repayment terms. Long-term Payables Long-term payables mainly consist of long-term accounts payable, long-term bank loans, long-term Long-term accounts payable are financial liabilities with carrying values that approximate fair value due to any changes in fair value, after considering the discount rate, being immaterial. For long-term accounts payable, the Group estimated fair values using the discounted cash flow method. The Sohu Group classifies the valuation technique as Level 2 of fair value measurements. Assets Measured at Fair Value on a Nonrecurring Basis The following table sets forth assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy as of December 31, 2018 and 2019 (in thousands) Fair value measurements at reporting date using Items As of Quoted Prices in Significant Other Significant Purchased video content recorded in prepaid and other assets $ 5,504 $ 0 $ 0 $ 5,504 Intangible assets, net 24,071 0 0 24,071 Goodwill 53,263 0 0 53,263 Fair value measurements at reporting date using Items As of Quoted Prices in Significant Other Significant Purchased video content recorded in prepaid and other assets $ 3,115 $ 0 $ 0 $ 3,115 Intangible assets, net 11,437 0 0 11,437 Goodwill 52,923 0 0 52,923 Purchased Video Content Recorded in Prepaid and Other Assets The impairment losses recognized in prepaid and other assets were mainly due to impairment losses for Sohu Video’s purchased video content. See Note 15 - Intangible Assets, Net. Intangible Assets Intangible assets mainly comprise purchased video content, operating rights for licensed games, domain names and trademarks, computer software, and developed technologies. The impairment losses recognized for intangible assets were mainly due to impairment losses for the domain name related to the 56.com Website and Sohu Video’s purchased video content. See Note 15 - Intangible Assets, Net. Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Group’s acquisitions of interests in its subsidiaries and consolidated VIEs. See Note 14 - Goodwill. |
Lease
Lease | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 12. LEASE The Group has entered into operating lease agreements, primarily for offices in China with lease periods expiring between 2019 and 2022. The determination of whether an arrangement is or contains a lease is made at the inception of the lease by evaluating whether the arrangement conveys the right to use an identified asset and whether the Group obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Operating lease assets and liabilities are included on the GroupÂ’s consolidated balance sheets beginning January 1, 2019. The right-of-use Operating lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The Group uses its incremental borrowing rate in determining the present value of the future lease payments, because the interest rate implicit in most of the leases is not readily determinable. The Group estimates its incremental borrowing rate for each leased asset based on the interest rate the Group would incur to borrow an amount equal to the lease payments on a collateralized basis over a similar term in a similar economic environment. Certain lease agreements contain an option for the Group to renew a lease for a term agreed to by the Group and the lessor or an option to terminate a lease earlier than the maturity date. The Group considers these options, which may be elected at the GroupÂ’s sole discretion, in determining the lease term on a lease-by-lease The GroupÂ’s lease agreements generally contain lease and non-lease Non-lease non-lease non-lease Components of operating lease expense are as follows (in thousands): Year Ended December 31, 2019 Operating lease expense $ 12,623 Short-term lease expense 263 Total operating lease expense $ 12,886 Supplemental cash flow information related to leases are as follows (in thousands): Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 12,164 Year Ended December 31, 2019 Right-of-use Operating leases $ 11,332 The following table presents supplemental balance sheet information related to the operating leases (in thousands): Year Ended December 31, 2019 Assets: Operating lease right-of-use $ 16,656 Liabilities: Current lease liabilities 8,616 Non-current 5,770 Total operating lease liabilities $ 14,386 Maturities of lease liabilities under operating leases as of December 31, 2019 are as follows (in thousands): 2020 $ 8,969 2021 5,380 2022 972 2023 0 2024 0 Thereafter 0 Total future lease payments 15,321 Less: imputed interest 935 Total present value of lease liabilities $ 14,386 The following table presents supplemental information for comparative periods of future minimum rental payments under the operating leases as of December 31, 2018 (in thousands): 2019 $ 12,367 2020 10,311 2021 6,032 2022 809 2023 270 Thereafter 0 Total minimum lease payments (1) $ 29,789 Note (1): Amounts are based on ASC 840, which was superseded upon the GroupÂ’s adoption of ASC 842 on January 1, 2019. Rental expenses under operating leases were $17.2 million and $14.7 million for the years ended December 31, 2017, and 2018, respectively. As of December 31, 2019, operating leases recognized in lease liabilities had a weighted average remaining lease term of 2.0 years and a weighted average discount rate of 4.9%. As of December 31, 2019, the Group had no lease contracts that had been entered into but were not yet commenced. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2019 | |
FIXED ASSETS [Abstract] | |
Fixed Assets | 13. FIXED ASSETS The following table summarizes the Sohu GroupÂ’s fixed assets (in thousands): As of December 31, 2018 2019 Office buildings $ 372,723 $ 366,686 Computer equipment and hardware 418,198 414,532 Leasehold and building improvements 48,364 47,262 Office furniture 8,768 9,091 Vehicles 3,812 3,595 Fixed assets, gross 851,865 841,166 Accumulated depreciation (347,218 ) (393,478 ) Fixed assets, net $ 504,647 $ 447,688 For the years ended December 31, 2019, 2018 and 2017, depreciation expenses for fixed assets were $92.9 million, $92.8 million and $82.9 million, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
GOODWILL [Abstract] | |
Goodwill | 14. GOODWILL Changes in the carrying value of goodwill by segment are as follows (in thousands): Sohu Sogou Changyou Total Balance as of December 31, 2017 Goodwill 73,941 5,908 181,421 261,270 Accumulated impairment losses (35,788 ) 0 (153,917 ) (189,705 ) $ 38,153 $ 5,908 $ 27,504 $ 71,565 Transactions in 2018 Foreign currency translation adjustment (772 ) (283 ) (878 ) (1,933 ) Impairment losses 0 0 (16,369 ) (16,369 ) Balance as of December 31, 2018 $ 37,381 $ 5,625 $ 10,257 $ 53,263 Balance as of December 31, 2018 Goodwill 69,627 5,625 180,543 255,795 Accumulated impairment losses (32,246 ) 0 (170,286 ) (202,532 ) $ 37,381 5,625 $ 10,257 $ 53,263 Transactions in 2019 Foreign currency translation adjustment (249 ) (91 ) 0 (340 ) Impairment losses 0 0 0 0 Balance as of December 31, 2019 $ 37,132 $ 5,534 $ 10,257 $ 52,923 Balance as of December 31, 2019 Goodwill 69,378 5,534 180,543 255,455 Accumulated impairment losses (32,246 ) 0 (170,286 ) (202,532 ) $ 37,132 5,534 $ 10,257 $ 52,923 There was one reporting unit under the Sohu segment and one reporting unit under the Sogou segment. After Changyou ceased operations of RaidCall and the cinema advertising business, the reporting units under the Changyou segment consisted of the Changyou online game business and the 17173.com Website. In the fourth quarter of 2019, the Sohu Group tested goodwill for impairment at the reporting unit level. The Group performed impairment tests using the qualitative and quantitative methods. For the Sohu and Sogou segments, impairment tests were conducted by quantitatively comparing the fair values of the reporting units to their carrying amounts. The Sohu and Sogou segments estimated the fair values by weighting the results from the income approach and market approach. The valuation approach considers a number of factors that include expected future cash flows, growth rates, discount rates, and market price, and requires Sohu and Sogou to make certain assumptions and estimates regarding industry economic factors and future profitability of the business. For the Changyou segment, Changyou first qualitatively assessed whether it was more likely than not that the fair values of the reporting segments were less than their carrying amounts. For those reporting units where it was more likely than not that their fair values were less than their carrying amounts, Changyou performed the first step of a two-step In March 2019 and August 2019, respectively, Changyou ceased its RaidCall and cinema advertising business operations. Accordingly, there were no impairments for these two units, as the carrying values of both RaidCall and the cinema advertising business were nil before their cessation. As of December 31, 2019, for the Sohu and Sogou segments and the businesses in the Changyou segment, management concluded that the fair values of the reporting units exceeded their carrying values, indicating that the goodwill of the reporting units was not impaired. In the fourth quarter of 2018, Changyou recognized a $16.4 million impairment loss for goodwill relating to the 17173.com Website, primarily due to (i) the launch of new initiatives for the 17173.com Website having fallen behind schedule in the fourth quarter of 2018 and the profit outlook for the 17173.com Website being uncertain, and (ii) the relevant Chinese authorityÂ’s temporary suspension between April and December of 2018 of its review of, and issuance of publishing and authorization codes for, online games, which resulted in declines in the number of new games launched and the related demand from game developers and operators for online advertising services on the 17173.com Website, both of which ChangyouÂ’s management determined had a material adverse impact on ChangyouÂ’s ability to generate revenues and net income from the 17173.com Website. As of December 31, 2018, for the Sohu and Sogou segments, and the businesses in the Changyou segment other than the 17173.com Website, management concluded that the fair values of the reporting units exceeded their carrying values, indicating that the goodwill of the reporting units was not impaired. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
INTANGIBLE ASSETS, NET [Abstract] | |
Intangible Assets, Net | 15. INTANGIBLE ASSETS, NET As of December 31, 2018 Items Gross Accumulated Impairment Net Purchased video content $ 177,307 $ (156,198 ) $ (18,556 ) $ 2,553 Operating rights for licensed games 46,237 (22,239 ) (11,776 ) 12,222 Domain names and trademarks 28,054 (11,124 ) (9,341 ) 7,589 Computer software 15,550 (13,948 ) 0 1,602 Developed technologies 8,902 (1,463 ) (7,439 ) 0 Others 6,141 (4,171 ) (1,865 ) 105 Total $ 282,191 $ (209,143 ) $ (48,977 ) $ 24,071 As of December 31, 2019 Items Gross Accumulated Impairment Net Purchased video content $ 217,610 $ (179,167 ) $ (35,940 ) $ 2,503 Operating rights for licensed games 47,226 (27,992 ) (12,365 ) 6,869 Domain names and trademarks 27,644 (11,210 ) (16,176 ) 258 Computer software 16,231 (14,515 ) 0 1,716 Developed technologies 8,773 (1,441 ) (7,332 ) 0 Others 6,044 (4,118 ) (1,835 ) 91 Total $ 323,528 $ (238,443 ) $ (73,648 ) $ 11,437 Impairment Losses In 2019, Sohu recognized a $7.2 million impairment loss for a domain name related to the 56.com Website, mainly due to enhanced restrictions that Chinese regulatory authorities imposed on the broadcasting industry, which had an adverse effect on the operation of the 56.com Website. Also in 2019, Sohu recognized a $4.0 million impairment loss related to Sohu VideoÂ’s purchased video content pursuant to the Sohu GroupÂ’s policy on impairment of overseas content. In 2018, Sohu recognized $10.4 million in losses related to Sohu VideoÂ’s purchased video content, of which $9.8 million was recognized as impairment of intangible assets and $0.6 million was recognized as impairment of prepaid and other current assets, as Sohu VideoÂ’s revenues for 2018 did not meet managementÂ’s expectations. In 2017, Sohu recognized $70.6 million in losses related to Sohu VideoÂ’s purchased video content, of which $43.1 million was recognized as impairment of intangible assets and $27.5 million was recognized as impairment of prepaid and other current assets. The impairment losses incurred were mainly due to Sohu VideoÂ’s restructuring of its sales team and a strategy shift from purchasing expensive head content to self-producing content, as a result, revenues for 2017 did not meet managementÂ’s expectations. Also in 2017, Changyou recognized a $3.4 million impairment loss related to intangible assets for its MoboTap business, mainly due to reinforced restrictions that Chinese regulatory authorities imposed on online card and board games, which had an adverse impact on MoboTapÂ’s current performance, and also increased the uncertainty for its future operations and cash flow. Amortization In 2019, 2018 and 2017, amortization of intangible assets was $39.5 million, $59.3 million and $140.2 million, respectively. As of December 31, 2019, amortization expenses for future periods are estimated to be as follows: For the year ending December 31, (in thousands) 2020 7,042 2021 3,414 2022 515 2023 300 2024 99 Thereafter 67 Total expected amortization expense $ 11,437 |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2019 | |
TAXATION [Abstract] | |
Taxation | 16. TAXATION Income Tax PRC Corporate Income Tax The majority of the subsidiaries and VIEs of the Sohu Group are based in mainland China and are subject to income taxes in the PRC. These China-based subsidiaries and VIEs conduct substantially all of the Sohu Group’s operations, and generate most of the Sohu Group’s income or losses. The CIT Law applies an income tax rate of 25% to all enterprises but grants preferential tax treatment to HNTEs, “Software Enterprises,” and KNSEs. Principal Entities Qualified as HNTEs Under preferential tax treatment, HNTEs can enjoy an income tax rate of 15%, but need to re-apply As of December 31, 2019, the following principal entities of the Sohu Group were qualified as HNTEs and were entitled to an income tax rate of 15%. For Sohu’s Business – Sohu New Momentum. Sohu New Momentum re-applied re-apply – Sohu Internet and Video Tianjin. Sohu Internet and Video Tianjin qualified as HNTEs for the years 2018 through 2020, and will need to re-apply – Sohu Media. Sohu Media qualified as an HNTE for the years 2017 through 2019, and will need to re-apply For Sogou’s Business – Sogou Network. Sogou Network re-applied re-apply – Sogou Information. Sogou Information qualified as an HNTE for the years 2018 through 2020, and will need to re-apply – Sogou Technology. Sogou Technology qualified as an HNTE for the years 2017 through 2019, and will need to re-apply For Changyou’s Business – Gamespace. Gamespace re-applied re-apply – Changyou Chuangxiang. Changyou Chuangxiang applied for HNTE qualification and received approval in October 2019. Changyou Chuangxiang is entitled to enjoy the beneficial tax rate as an HNTE for the years 2019 through 2021, and will need to re-apply – Gamease and AmazGame. Gamease and AmazGame qualified as HNTEs for the years 2017 through 2019, and will need to re-apply Principal Entities Qualified as Software Enterprises and KNSEs The CIT Law and its implementing regulations provide that a Software Enterprise is entitled to an income tax exemption for two years beginning with its first profitable year and a 50% reduction to a rate of 12.5% for the subsequent three years. An entity that qualifies as a KNSE is entitled to a further reduced preferential income tax rate of 10%. Enterprises wishing to enjoy the status of a Software Enterprise or a KNSE must perform a self-assessment each year to ensure they meet the criteria for qualification and file required supporting documents with the tax authorities before using the preferential CIT rates. These enterprises will be subject to the tax authorities’ assessment each year as to whether they are entitled to use the relevant preferential CIT treatments. If at any time during the preferential tax treatment years an enterprise uses the preferential CIT rates but the relevant authorities determine that it fails to meet applicable criteria for qualification, the relevant authorities may revoke the enterprise’s Software Enterprise/KNSE status. For Changyou’s Business – AmazGame. In 2019, AmazGame completed a self-assessment and filed required supporting documents for KNSE status for 2018. Also in 2019, AmazGame was qualified as a KNSE after the relevant government authorities’ assessment and became entitled to a preferential income tax rate of 10% for 2018. AmazGame will follow the same process in 2020 for KNSE status for 2019. – Changyou Chuangxiang. In 2019, Changyou Chuangxiang completed a self-assessment, filed required supporting documents, was qualified as a Software Enterprise, and became entitled to the second year of an income tax exemption for 2018. Changyou Chuangxiang will follow the same process in 2020 to entitle it to the third year of an income tax exemption for 2019. U.S. Corporate Income Tax Sohu.com Inc., which was formerly the top-tier one-time Certain activities conducted in the PRC resulted in U.S. corporate income taxes being imposed on Sohu.com Inc. when its subsidiaries that were controlled foreign corporations (“CFCs”) generated income that was subject to Subpart F of the U.S. Internal Revenue Code (“Subpart F”). Generally, passive income, such as rents, royalties, interest, dividends, and gains from disposal of the company’s investments, is among the types of income subject to taxation under Subpart F. Any income taxable under Subpart F was taxable in the U.S. at the applicable federal corporate income tax rate. Subpart F income also included certain income from intra-Group transactions between Sohu.com Inc.’s non-U.S. non-U.S. non-U.S. non-U.S. To the extent that portions of Sohu.com Inc.’s U.S. taxable income, such as Subpart F income or GILTI, as applicable, had been determined to be from sources outside of the U.S., subject to certain limitations, Sohu.com Inc. may have been entitled to claim foreign tax credits to offset its U.S. income tax liabilities. Following the enactment of the U.S. TCJA, if dividends that Sohu.com Inc. received from its subsidiaries after January 1, 2018 were determined to be from sources outside of the U.S., subject to certain limitations, Sohu.com Inc. would generally not have been required to pay U.S. corporate income tax on those dividends. Liabilities for U.S. corporate income tax were accrued in the Company’s consolidated statements of comprehensive income and estimated tax payments were made when required by U.S. law. Treatment of Toll Charge Related to the U.S. TCJA Beginning in the fourth quarter of 2017, the Sohu Group had recognized a provisional amount of income tax expense for the Toll Charge of $219 million, which represented management’s estimate of the amount of the Toll Charge that would have been payable by Sohu.com Inc. based on the deemed repatriation to the United States of its share of previously deferred earnings of certain of its non-U.S. For the fourth quarter of 2018, the Sohu Group’s management re-evaluated The tax benefit recognized and the unrecognized tax benefit in relation to the Toll Charge may be subject to further adjustment in subsequent periods based on facts and circumstances that arose after December 31, 2019, such as any IRS assessments upon audit and management’s further judgment and estimates. Cayman Island Tax Under the current tax laws of the Cayman Islands, the Group is not subject to tax on its income or capital gains. In addition, no Cayman Islands withholding tax will be imposed upon the payment of dividends by the Group to its shareholders. Hong Kong Tax The Group’s subsidiaries incorporated in Hong Kong are subject to profits tax in Hong Kong at the rate of 16.5% for each of the years ended December 31, 2017, 2018 and 2019. Composition of Income Tax Expense Sohu.com Inc., which was the former top-tier top-tier The components of income before income taxes are as follows (in thousands): Year ended December 31, 2017 2018 2019 Income /(loss) before income tax expense Income /(loss) from China operations $ (55,874 ) $ (2,865 ) $ (4,390 ) Income /(loss) from non-China (120,962 ) (33,092 ) 26,173 Total income /(loss) before income tax expense $ (176,836 ) $ (35,957 ) $ 21,783 Income tax expense applicable to China operations Current tax $ 56,938 $ 15,040 $ 14,510 Deferred tax 343 49,598 8,455 Subtotal income tax expense applicable to China operations 57,281 64,638 22,965 Non-China 214,737 (78,540 ) 7,887 Non-China 618 469 324 Total income tax expense $ 272,636 $ (13,433 ) $ 31,176 In 2019, of the 31.2 million total income tax expense, $23.0 million was for PRC tax, resulting primarily from accrued regular income tax expense of $41.5 million, offset by a reversal of PRC income tax expense of $19.5 million by Changyou due to preferential tax rates that Changyou’s subsidiaries were entitled to as KNSE and Software enterprises, and $8 million was for U.S. corporate income tax, resulting primarily from accrued interest on an unrecognized tax benefit. For the fourth quarter of 2018, the Sohu Group’s management re-evaluated In 2017, of the $272.6 million income tax expense, $55.9 million was for PRC tax, mainly attributable to the Sohu Group’s business operations, and $214.7 million was for U.S. corporate income tax, resulting primarily from the Company’s recognition in the fourth quarter of 2017 of $219 million for the Toll Charge, which represented management’s estimate of the amount of the Toll Charge that would have been payable by Sohu.com Inc. based on the deemed repatriation to the United States of Sohu.com Inc.’s share of previously deferred earnings of certain non-U.S. The combined effects of the income tax exemption and reduction available to the Group are as follows (in thousands, except per share data): Year Ended December 31, 2017 2018 2019 Tax holiday effect $ 17,736 $ 28,385 $ 10,110 Basic net income per share effect 0.46 0.73 0.26 Effective Tax Rate The CIT Law applies an income tax rate of 25% to all enterprises, but grants preferential tax treatment to HNTEs, Software Enterprises, and KNSEs. The U.S. TCJA significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time The following is reconciliation between the statutory rate and the Group’s effective tax rate. For 2017, the statutory rate represented the U.S. statutory rate of 35%, and for 2018 and 2019, the statutory rate represented the PRC statutory rate of 25%. The table does not reflect any accruals related to the Toll Charge. See “ U.S. Corporate Income Tax Treatment of Toll Charge Related to the U.S. TCJA. Year Ended December 31, 2017 2018 2019 Statutory Rate: 35 % 25 % 25 % Effect of tax holidays applicable to subsidiaries and consolidated VIEs (1) 10 % 79 % (46 %) Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs (14 %) (6 %) (12 %) Effect of withholding taxes (2) (2 %) (147 %) 40 % Changes in valuation allowance for deferred tax assets (56 %) (128 %) 260 % Research and development super-deduction 9 % 66 % (142 %) Others (13 %) (55 %) (17 %) (31 %) (166 %) 108 % Note (1): The reversal of income tax for preferential income tax rates that Changyou’s and Sogou’s subsidiaries and VIEs were entitled to as KNSEs or Software Enterprises for 2017, 2018 and 2019 was included in the “Effect of tax holidays applicable to subsidiaries and consolidated VIEs” in the above table. Note (2): The change was mainly due to additional income withholding tax of $47 million that was recognized in the first quarter of 2018 due to a revised policy for Changyou’s PRC subsidiaries with respect to their distribution of cash dividends. The revised policy was adopted to facilitate the distribution of a special cash dividend in the aggregate amount of approximately $500.0 million that was declared by Changyou’s Board of Directors on April 5, 2018. PRC Withholding Tax on Dividends The CIT Law imposes a 10% withholding income tax on dividends distributed by foreign invested enterprises in the PRC to their immediate holding companies outside Mainland China. A lower withholding tax rate may be applied if there is a tax treaty between Mainland China and the jurisdiction of the foreign holding company. A holding company in Hong Kong, for example, will be subject to a 5% withholding tax rate under an arrangement between the PRC and the Hong Kong Special Administrative Region on the “Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income,” if such holding company is considered a non-PRC Before 2018, in order to fund the distribution of a dividend to shareholders of the Sohu Group’s majority-owned subsidiary Changyou, Changyou’s management determined to cause one of its PRC subsidiaries to declare and distribute a cash dividend of all of its stand-alone 2012 earnings and half of its stand-alone subsequent years’ earnings to its direct overseas parent company, Changyou HK, and adopted as a policy for such subsequent years for its PRC subsidiaries a limit on payment of dividends to their direct overseas parent companies of one-half With the exception of that dividend, the Sohu Group does not intend to have any of its PRC subsidiaries or VIEs distribute any undistributed profits of such subsidiaries or VIEs to their direct overseas parent companies, but rather intends that such profits will be permanently reinvested by such subsidiaries and VIEs for their PRC operations. As of December 31, 2019, the total amount of undistributed profits from the PRC subsidiaries and VIEs for which no withholding tax had been accrued was $743.9 million, and the unrecognized tax liabilities were $74.4 million. PRC Value-Added Tax On May 1, 2016, the transition from the imposition of PRC business tax to the imposition of VAT was expanded to all industries in China, and as a result all of the Sohu Group’s revenues have been subject to VAT since that date. To record VAT payable, the Group adopted the net presentation method, which presents the difference between the output VAT (at rates of 6% or 17% for the year ended December 31, 2017 and for the period from January 1, 2018 to April 30, 2018, at rates of 6% or 16% for the period from May 1, 2018 to March 31, 2019, and at rates of 6% or 13% after April 1, 2019) and the available input VAT amount (at the rate applicable to the supplier). Deferred Tax Assets and Liabilities Significant components of the Group’s deferred tax assets and liabilities consist of the following (in thousands): As of December 31, 2018 2019 Deferred tax assets: Net operating loss from operations $ 257,955 $ 290,266 Accrued bonus and commissions 26,704 25,457 Provision for inventory and doubtful receivables 3,931 7,517 Intangible assets transfer 1,524 916 Others 9,250 18,132 Total deferred tax assets 299,364 342,288 Less: Valuation allowance (272,008 ) (311,813 ) Net deferred tax assets $ 27,356 $ 30,475 Deferred tax liabilities Withholding tax for Dividend $ (79,824 ) $ (86,834 ) Intangible assets from business acquisitions (1,087 ) 0 Others (4,353 ) (9,070 ) Total deferred tax liabilities $ (85,264 ) $ (95,904 ) Net deferred tax assets are recorded under other assets in the consolidated balance sheets. As of December 31, 2019, the Group had net operating losses from PRC entities of approximately $1.43 billion available to offset against future net profit for income tax purposes. The Group anticipates that it is more likely than not that these net operating losses may not be utilized based on its estimate of the operation performance of these PRC entities; therefore, $283.4 million in deferred tax assets generated from net operating losses were offset by a valuation allowance. The following table sets forth the movement of the valuation allowances for deferred tax assets for the years presented (in thousands): For the Year Ended 2017 2018 2019 Beginning balance $ 214,531 250,096 272,008 Provision for the year 56,259 41,405 52,939 Reversal for the year (33,392 ) (7,726 ) (8,650 ) Foreign currency translation adjustment 12,698 (11,767 ) (4,484 ) Ending balance $ 250,096 272,008 311,813 In 2019, $15.9 million of PRC net operating losses generated from previous years expired. Pursuant to a public announcement issued by the PRC State Administration of Taxation in August 2018, net operating losses of entities not qualified as HNTEs will expire between 2020 and 2024 if not utilized and those of entities qualified as HNTEs will expire in 2029. Uncertain Tax Positions The following table summarizes the Group’s unrecognized tax benefit from January 1, 2017 to December 31, 2019 (in thousands): As of December 31, 2017 2018 2019 Beginning balance $ 32,682 $ 31,138 $ 174,363 Increases /(decreases) related to prior year tax positions (1,544 ) (1,190 ) 7,300 Increases related to current year tax positions 0 144,415 0 Ending balance $ 31,138 $ 174,363 $ 181,663 The increase in 2019 was mainly due to $8 million interest recognized in connection with an unrecognized tax benefit for the year ended December 31, 2019. The increase in 2018 was mainly due to an unrecognized tax benefit in the amount of $142 million, which represented the difference between the tax benefit recognized in the fourth quarter of 2018 in relation to the Toll Charge and management’s previous estimate of the Toll Charge that would have been due by Sohu.com Inc. if it had not been dissolved and liquidated on May 31, 2018. The Group recognized interest in the amount of $2 million in connection with the unrecognized tax benefit for the year ended December 31, 2018. The Group did not have any significant penalties associated with tax positions for the year ended December 31, 2018. The material jurisdictions in which the Group is subject to potential examination include China and the United States. In general, the PRC tax authorities have up to five years, and the U.S. IRS has up to three years and in certain cases up to six years, to conduct examinations of the tax filings of the Group. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Commitments and Contingencies | 17. COMMITMENTS AND CONTINGENCIES Commitments The following table sets forth the Group’s commitments as of December 31, 2019 (in thousands): 2020 2021 2022 2023 2024 Thereafter Total Purchase of bandwidth $ 50,405 352 0 0 0 0 50,757 Operating rights for licensed games and titles of games in development 12,806 600 0 0 0 0 13,406 Purchase of content and services – video 7,429 2,013 0 0 0 0 9,442 Purchase of content and services – others 5,526 180 53 18 0 0 5,777 Goods purchases 5,633 0 0 0 0 0 5,633 Operating lease obligations 3,020 93 10 0 0 0 3,123 Interest payment commitment 2,164 0 0 0 0 0 2,164 Others 3,127 460 0 0 0 0 3,587 Total Payments Required $ 90,110 3,698 63 18 0 0 93,889 Litigation The Sohu Group is a party to various litigation matters which it considers routine and incidental to its business. The Sohu Group records a liability when the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. The Sohu Group evaluates, on a regular basis, developments in litigation matters that could affect the amount of liability that has been previously accrued and makes adjustments as appropriate. Management believes that the total liabilities to the Sohu Group that may arise as a result of currently pending legal proceedings will not have a material adverse effect on the Group’s business, results of operations, financial condition and cash flows. Sogou is currently involved in several lawsuits in PRC courts where its competitors instituted proceedings or asserted counterclaims against the Sogou or the Sogou instituted proceedings or asserted counterclaims against its competitors. There are also two putative class action lawsuits that have been filed against Sogou in the United States, one in a State court in the State of California and one in the United States District Court for the Southern District of New York, that allege violations of U.S. securities laws in connection with Sogou’s IPO in 2017. As of December 31, 2019, Sohu and Changyou had no significant litigation contingencies, and Sogou had recorded estimated liabilities of $6.5 million for litigation contingencies as a component of accrued liabilities related to its currently pending proceedings. PRC Law and Regulations The Chinese market in which the Sohu Group operates poses certain macro-economic and regulatory risks and uncertainties. These uncertainties extend to the ability to operate an Internet business and to conduct brand advertising, search and search-related advertising, online game, and other services in the PRC. Though the PRC has, since 1978, implemented a wide range of market-oriented economic reforms, continued reforms and progress towards a full market-oriented economy are uncertain. In addition, the telecommunication, information, and media industries remain highly regulated. Restrictions are currently in place and are unclear with respect to which segments of these industries foreign-owned entities, like the Sohu Group, may operate. The Chinese government may issue from time to time new laws or new interpretations of existing laws to regulate areas such as telecommunication, information and media. The Sohu Group’s legal structure and scope of operations in China could be subject to restrictions, which could result in limits on its ability to conduct business in the PRC. Certain risks related to PRC law that could affect the Sohu Group’s VIE structure are discussed in Note 18 - VIEs. Regulatory risks also encompass interpretation by PRC tax authorities of current tax law, including the applicability of certain preferential tax treatments. The Sohu Group’s sales, purchase and expense transactions are generally denominated in RMB and a significant portion of its assets and liabilities are denominated in RMB. The RMB is not freely convertible into foreign currencies. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions. Remittances in currencies other than RMB by its subsidiaries in China may require certain supporting documentation in order to effect the remittance. |
VIEs
VIEs | 12 Months Ended |
Dec. 31, 2019 | |
VIES [Abstract] | |
VIEs | 18. VIEs Background PRC laws and regulations prohibit or restrict foreign ownership of companies that operate Internet information and content, Internet access, online games, mobile, value added telecommunications and certain other businesses in which the Sohu Group is engaged or could be deemed to be engaged. Consequently, the Sohu Group conducts certain of its operations and businesses in the PRC through its VIEs. The Sohu Group consolidates in its consolidated financial statements all of the VIEs of which the Group is the primary beneficiary. VIEs Consolidated within the Sohu Group The Sohu Group adopted the guidance of accounting for VIEs, which requires VIEs to be consolidated by the primary beneficiary of the entity. Management made evaluations of the relationships between the Sohu Group and its VIEs and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluation, management also took into account the fact that, as a result of contractual arrangements with its consolidated VIEs, the Sohu Group controls the shareholders’ voting interests in those VIEs. As a result of such evaluation, the management concluded that the Sohu Group is the primary beneficiary of the VIEs which the Group consolidates. All of the consolidated VIEs are incorporated and operated in the PRC, and the Group’s principal VIEs are directly or indirectly owned by Dr. Charles Zhang, the Sohu Group’s Chairman and Chief Executive Officer, or other executive officers and employees of the Sohu Group identified below. Capital for the consolidated VIEs was funded by the Sohu Group through loans provided to Dr. Charles Zhang and other executive officers and employees, and was initially recorded as loans to related parties. These loans are eliminated for accounting purposes against the capital of the VIEs upon consolidation. Under contractual agreements with the Sohu Group, Dr. Charles Zhang and those other executive officers and employees of the Sohu Group who are shareholders of the consolidated VIEs are required to transfer their ownership in these entities to the Group, if permitted by PRC laws and regulations, or, if not so permitted, to designees of the Group at any time as requested by the Group to repay the loans outstanding. All voting rights of the consolidated VIEs are assigned to the Sohu Group, and the Group has the right to designate all directors and senior management personnel of the consolidated VIEs, and also has the obligation to absorb losses of the consolidated VIEs. Dr. Charles Zhang and those other executive officers and employees of the Sohu Group who are shareholders of the consolidated VIEs have pledged their shares in the consolidated VIEs as collateral for the loans. As of December 31, 2019, the aggregate amount of these loans was $7.7 million. Under its contractual arrangements with the consolidated VIEs, the Sohu Group has the power to direct activities of the VIEs, and can have assets transferred freely out of the VIEs without any restrictions. Therefore, the Group considers that there is no asset of a consolidated VIE that can be used only to settle obligations of the VIEs, except for registered capital and PRC statutory reserves of the VIEs. As of December 31, 2019, the registered capital and PRC statutory reserves of the consolidated VIEs totaled $83.5 million. As all of the consolidated VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the consolidated VIEs do not have recourse to the general credit of the Sohu Group for any of the liabilities of the consolidated VIEs. Currently there is no contractual arrangement that could require the Sohu Group to provide additional financial support to the consolidated VIEs. As the Sohu Group is conducting certain business in the PRC mainly through the consolidated VIEs, the Group may provide such support on a discretionary basis in the future, which could expose the Group to a loss. The Sohu Group classified the consolidated VIEs within the Sohu Group as principal VIEs or immaterial VIEs based on certain criteria, such as the VIEs’ total assets or revenues. The following is a summary of the principal VIEs within the Sohu Group: Basic Information for Principal VIEs and Subsidiaries of Principal VIEs For Sohu’s Business – High Century High Century was incorporated in 2001. As of December 31, 2019, Dr. Charles Zhang and Wei Li held 80% and 20% interests, respectively, in this entity. – Heng Da Yi Tong Heng Da Yi Tong was incorporated in 2002. As of December 31, 2019, Dr. Charles Zhang and Wei Li held 80% and 20% interests, respectively, in this entity. – Sohu Internet Sohu Internet was incorporated in 2003. As of December 31, 2019, High Century held a 100% interest in this entity. – Donglin Donglin was incorporated in 2010. As of December 31, 2019, Sohu Internet held a 100% interest in this entity. – Tianjin Jinhu Tianjin Jinhu was incorporated in 2011. In October 2016, Ye Deng transferred its 50% equity interest in Tianjin Jinhu to Xiufeng Deng. As of December 31, 2019, Xiufeng Deng and Xuemei Zhang each held a 50% interest in this entity. – Focus Interactive Focus Interactive was incorporated in July 2014. As of December 31, 2019, Heng Da Yi Tong held 100% of the equity interests in this entity. For Sogou’s Business – Sogou Information Sogou Information was incorporated in 2005. As of December 31, 2019, Xiaochuan Wang, Sogou’s Chief Executive Officer, High Century and Tencent held 10%, 45% and 45% interests, respectively, in this entity. – Chengdu Easypay Chengdu Easypay was incorporated in 2015. As of December 31, 2019, Sogou Information and Beijing Shi Ji Si Su Technology Co., Ltd. (“Shi Ji Si Su”), a subsidiary of Sogou Information, held 9% and 91% interests, respectively, in this entity. For Changyou’s Business – Gamease Gamease was incorporated in 2007. As of December 31, 2019, High Century held a 100% interest in this entity. – Shanghai ICE Shanghai ICE was acquired by Changyou in 2010. As of December 31, 2019, Gamease held a 100% interest in this entity. – Guanyou Gamespace Guanyou Gamespace was incorporated in 2010. As of December 31, 2019, Beijing Changyou Star Digital Technology Co., Ltd (“Changyou Star”) held a 100% interest in this entity. Financial Information The following financial information of the Sohu Group’s consolidated VIEs (including subsidiaries of VIEs) is included in the accompanying consolidated financial statements (in thousands): As of December 31, 2018 2019 ASSETS: Cash and cash equivalents $ 65,864 $ 52,744 Restricted cash 697 6,474 Account and financing receivables, net 122,884 140,300 Prepaid and other current assets 20,554 17,528 Short-term investments 7,305 7,192 Intra-Group receivables due from the Company’s subsidiaries 390,157 420,103 Total current assets 607,461 644,341 Long-term investments, net 45,871 43,657 Fixed assets, net 1,793 1,400 Intangible assets, net 18,240 6,832 Goodwill 36,353 36,194 Other non-current 1,925 16,656 Total assets $ 711,643 $ 749,080 LIABILITIES: Accounts payable $ 84,749 $ 74,781 Accrued liabilities 60,555 64,874 Receipts in advance and deferred revenue 43,020 47,735 Other current liabilities 86,851 80,859 Intra-Group payables due to the Company’s subsidiaries 273,672 300,601 Total current liabilities 548,847 568,850 Long-term tax liabilities 13,554 13,220 Deferred tax liabilities 2,239 1,998 Intra-Group payables due to the Company’s subsidiaries 18,897 18,599 Other long-term liabilities 0 1,130 Total liabilities $ 583,537 $ 603,797 As of December 31, 2017 2018 2019 Net revenue $ 881,284 $ 923,131 $ 1,013,452 Net income /(loss) $ 34,910 $ (18,436 ) $ 18,116 Year ended December 31, 2017 2018 2019 Net cash provided by /(used in) operating activities $ (52,351 ) $ 69,925 $ (7,084 ) Net cash used in investing activities (14,020 ) (49,271 ) (18,481 ) Net cash provided by /(used in) financing activities $ (131 ) $ 650 $ 8,601 Summary of Significant Agreements Currently in Effect Agreements between Subsidiaries, Consolidated VIEs and Nominee Shareholders Loan and share pledge agreement Loan and share pledge agreement Loan agreements and equity pledge agreements Exclusive equity interest purchase right agreements Business operation agreement Powers of Attorney Loan and share pledge agreements free-and VIE-related VIE-related VIE-related Exclusive equity interest purchase right agreements Business operation agreement Powers of Attorney Loan agreements and equity pledge agreements VIE-related VIE-related VIE-related Equity interest purchase right agreements Powers of attorney Business operation agreements Business Arrangements between Subsidiaries and Consolidated VIEs Exclusive technology consulting and service agreement Exclusive technology consulting and service agreement Exclusive technology consulting and service agreement Technology support and utilization agreements Services and maintenance agreements Certain of the contractual arrangements described above between the VIEs and the related wholly-owned subsidiaries of the Sohu Group are silent regarding renewals. However, because the VIEs are controlled by the Sohu Group through powers of attorney granted to the Sohu Group by the shareholders of the VIEs, the contractual arrangements can be, and are expected to be, renewed at the subsidiaries’ election. VIE-Related It is possible that the Sohu Group’s operation of certain of its operations and businesses through VIEs could be found by PRC authorities to be in violation of PRC law and regulations prohibiting or restricting foreign ownership of companies that engage in such operations and businesses. If a finding were made by PRC authorities that the Sohu Group’s operation of certain of its operations and businesses through VIEs is prohibited, regulatory authorities with jurisdiction over the licensing and operation of such operations and businesses would have broad discretion in dealing with such a violation, including levying fines, confiscating the Sohu Group’s income, revoking the business or operating licenses of the affected businesses, requiring the Sohu Group to restructure its ownership structure or operations, or requiring the Sohu Group to discontinue all or any portion of its operations. Any of these actions could cause significant disruption to the Sohu Group’s business operations, and have a severe adverse impact on the Sohu Group’s cash flows, financial position, and operating performance. The Sohu Group’s management considers the possibility of such a finding by PRC regulatory authorities to be remote. In addition, it is possible that the contracts among the Sohu Group, the Sohu Group’s VIEs and shareholders of its VIEs would not be enforceable in China if PRC government authorities or courts were to find that such contracts contravene PRC law and regulations or are otherwise not enforceable for public policy reasons. In the event that the Sohu Group was unable to enforce these contractual arrangements, the Sohu Group would not be able to exert effective control over the affected VIEs. Consequently, such VIEs’ results of operations, assets and liabilities would not be included in the Sohu Group’s consolidated financial statements. If such were the case, the Sohu Group’s cash flows, financial position and operating performance would be severely adversely affected. The Sohu Group’s contractual arrangements with respect to its consolidated VIEs are in place. The Sohu Group’s management believes that such contracts are enforceable, and considers the possibility remote that PRC regulatory authorities with jurisdiction over the Sohu Group’s operations and contractual relationships would find the contracts to be unenforceable. The Sohu Group’s operations and businesses rely on the operations and businesses of its VIEs, which hold certain recognized and unrecognized revenue-producing assets. The recognized revenue-producing assets include goodwill and intangible assets acquired through business acquisitions. Goodwill primarily represents the expected synergies from combining an acquired business with the Sohu Group. Intangible assets acquired through business acquisitions mainly consist of customer relationships, non-compete |
Sohu.com Limited Shareholders'
Sohu.com Limited Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
SOHU.COM LIMITED SHAREHOLDERS' EQUITY [Abstract] | |
Sohu.com Limited Shareholders' Equity | 19. SOHU.COM LIMITED SHAREHOLDERS’ EQUITY Summary of the Company’s outstanding shares (in thousands): Number of Outstanding Shares As of December 31, 2017 2018 2019 Balance, beginning of year 38,742 38,898 39,229 Issuance: 156 331 40 Balance, end of year 38,898 39,229 39,269 Share Incentive Plans Sohu (excluding Sohu Video), Sogou, Changyou, and Sohu Video have incentive plans for the granting of share-based awards, including options and restricted share units, to their directors, management and other key employees. 1) Sohu.com Limited Share-based Awards Sohu’s 2018 Share Incentive Plan On July 2, 2010, Sohu.com Inc.’s shareholders adopted the 2010 Stock Incentive Plan, which provides for the issuance of up to 1,500,000 shares of Sohu.com Inc.’s common stock, including stock issued pursuant to the vesting and settlement of restricted stock units and pursuant to the exercise of stock options. The maximum term of any share-based award granted under the Sohu 2010 Stock Incentive Plan is ten years from the grant date. On April 2, 2018, Sohu.com Limited adopted the Sohu 2018 Share Incentive Plan, which provides for the issuance of up 1,148,565 ordinary shares of Sohu.com Limited. The Sohu 2018 Share Incentive Plan will expire in April 2028. Upon the dissolution of Sohu.com Inc. on May 31, 2018, Sohu.com Limited assumed all then existing obligations of Sohu.com Inc. with respect to equity incentive awards that had been granted under the Sohu 2010 Stock Incentive Plan and then remained outstanding, and such awards were converted into the right to receive upon exercise or settlement Sohu.com Limited’s ordinary shares under the Sohu 2018 Share Incentive Plan rather than shares of the common stock of Sohu.com Inc., subject to the other terms of such outstanding awards. As of December 31, 2019, 189,405 shares were available for grant under the Sohu 2018 Share Incentive Plan. i) Summary of Share Option Activity In February 2015, May 2016, September 2017 and November 2017, Sohu.com Inc.’s Board of Directors approved contractual grants to members of the Company’s management and key employees of options for the purchase of an aggregate of 1,068,000, 13,000, 32,000 and 6,000 shares of common stock of Sohu.com Inc., respectively, under the Sohu 2010 Stock Incentive Plan, with nominal exercise prices of $0.001, all of which were converted, on May 31, 2018, into the right to receive upon exercise Sohu.com Limited’s ordinary shares under the Sohu 2018 Share Incentive Plan. In February 2019 and July 2019, Sohu.com Limited’s Board of Directors approved contractual grants to members of the Company’s management and key employees of options for the purchase of an aggregate of 20,000 and 477,500 shares of ordinary shares of Sohu.com Limited, respectively, under the Sohu 2018 Share Incentive Plan, with nominal exercise prices of $0.001. These share options vest and become exercisable in four equal installments over a period of four years, with each installment vesting upon the satisfaction of a service period requirement and certain subjective performance targets. These share options are substantially similar to restricted share units except for the nominal exercise price, which would be zero for restricted share units. Under ASC 718-10-25 ASC 718-10-55 re-measured As of December 31, 2019, 703,625 of these options had been granted and had become vested on their respective vesting dates, as a mutual understanding of the subjective performance targets was reached between the Company and the recipients, the targets had been satisfied, and the service period requirements had been fulfilled. The cumulative share-based compensation expense for these granted options has been adjusted and fixed based on their aggregate fair values, at their respective grant dates, of $25.3 million. A summary of option activity under the Sohu 2018 Share Incentive Plan as of and for the year ended December 31, 2019 is presented below: Options Number Of Shares Weighted Weighted Aggregate Outstanding as of January 1, 2019 42 $ 0.001 $ Granted 125 0.001 Exercised (39 ) 0.001 Forfeited or expired 0 Outstanding as of December 31, 2019 128 0.001 5.21 1,434 Vested as of December 31, 2019 128 0.001 5.21 1,434 Exercisable as of December 31, 2019 128 0.001 5.21 1,434 Note (1): The aggregated intrinsic value in the preceding table represents the difference between Sohu’s closing ADS price of $11.18 on December 31, 2019 and the nominal exercise price of the options. For the years ended December 31, 2019, 2018 and 2017, total share-based compensation expense recognized for these options was $1.9 million, negative $5.1 million and $2.4 million, respectively. The negative amounts in the tables above resulted from re-measured ii) Summary of restricted stock unit activity All of the restricted stock/share units previously granted under the Sohu 2018 Share Incentive Plan were vested as of December 31, 2018, as the requisite service period for all these awards had been completed. There has been no share-based compensation expense recognized since then. For the years ended December 31, 2019, 2018 and 2017, total share-based compensation expense recognized for restricted stock/share units was nil, nil and negative $1.7 million, respectively. As of December 31, 2019, there was nil of unrecognized compensation expense related to unvested restricted stock/share units. The total fair value on their respective vesting dates of restricted stock/share units vested during the years ended December 31, 2019, 2018 and 2017 was nil, nil and $0.3 million, respectively. 2) Sogou Inc. Share-based Awards Sogou 2010 Share Incentive Plan Sogou adopted a share incentive plan on October 20, 2010, which was amended effective August 22, 2014 to increase the aggregate number of Sogou Class A Ordinary Shares issuable under the plan to 41,500,000 (as amended to date, the “Sogou 2010 Share Incentive Plan”). Awards of share rights may be granted under the Sogou 2010 Share Incentive Plan to management and other key employees of Sogou and of any present or future parents or subsidiaries or VIEs of Sogou. The maximum term of any share incentive award granted under the Sogou 2010 Share Incentive Plan is ten years from the grant date. The Sogou 2010 Share Incentive Plan will expire on October 19, 2020. The options contractually granted under the Sogou 2010 Share Incentive Plan may be placed in one of the following three categories: (i) Performance-based options, which vest and become exercisable either in four equal installments or in two to four installments of specified share numbers over their specified vesting periods, with each installment vesting upon a service period requirement being met, as well as the employee grantee’s achievement, as determined by Sogou’s chief executive officer, of performance targets for the corresponding period specified by Sogou’s chief executive officer. For purposes of recognition of share-based compensation expense, each installment is considered to be granted as of the date that the performance targets have been set; or (ii) Service-based options, which vest and become exercisable either in four equal installments or in two to four installments of specified share numbers over their specified vesting periods, with each installment vesting only upon a service period requirement being met; or (iii) IPO-based A summary of each of the above three categories of Sogou’s share options as of December 31, 2019 is presented below: Contractually (in thousands) Granted (For Purposes of Share- (in thousands) Vested and (in thousands) Exercised (in thousands) Performance-based options 29,932 28,059 27,653 26,767 Service-based options 2,031 2,031 951 481 IPO-based 7,250 7,250 4,370 2,930 Total 39,213 37,340 32,974 30,178 A summary of Sogou share option activity under the Sogou 2010 Share Incentive Plan as of and for the year ended December 31, 2019 is presented below: Options Number Of Shares Weighted Weighted Aggregate Outstanding as of January 1, 2019 6,445 $ 0.419 5.29 $ Granted 1,432 0.001 Exercised (500 ) 0.001 Forfeited or expired (215 ) 0.001 Outstanding as of December 31, 2019 7,162 0.377 4.45 29,887 Vested as of December 31, 2019 and expected to vest thereafter 6,572 0.411 4.35 27,198 Exercisable as of December 31, 2019 2,796 0.033 4.42 11,819 Note (1): The aggregate intrinsic values in the preceding table represent the difference between Sogou’s closing price of $4.55 per Sogou ADS (each representing one Sogou Class A Ordinary Share) on December 31, 2019 and the exercise prices of the share options. For the years ended December 31, 2019, 2018 and 2017, total share-based compensation expense recognized for Sogou share options under the Sogou 2010 Share Incentive Plan was $13.5 million, $12.5 million and $23.0 million, respectively. As of December 31, 2019, there was $2.7 million of unrecognized compensation expense related to unvested Sogou share options. The expense is expected to be recognized over a weighted average period of 1.56 years. For the years ended December 31, 2019, 2018 and 2017, the total intrinsic value of options exercised was $1.6 million, $33.2 million, and $11.1 million, respectively. Prior to the completion of Sogou’s IPO, the fair values of Sogou Class A Ordinary Shares were assessed using the income approach /discounted cash flow method or based on the mid-point The fair value of the Sogou share options granted under the Sogou 2010 Incentive Plan was estimated on the date of grant with the assistance of a qualified professional appraiser, using the binomial valuation model with the following assumptions used: Assumptions Adopted 2017 2018 2019 Average risk-free interest rate 2.14%~3.00 % 3.36%~3.51 % 2.60%~2.86 % Exercise multiple 2~3 2 2~3 Expected forfeiture rate (post-vesting) 0%~12 % 12 % 0%~12 % Weighted average expected option life 7 9 7 Volatility rate 39%~47 % 40%~46 % 36%~41 % Dividend yield 0 % 0 % 0 % Weighted average fair value of share options 10.35 12.26 4.05 Sogou estimated the risk-free rate based on the market yields of U.S. Treasury securities with an estimated country-risk differential as of the valuation date. An exercise multiple was estimated as the ratio of the fair value of the Sogou Class A Ordinary Shares over the exercise prices as of the time the options would be expected to be exercised, based on consideration of research studies regarding exercise patterns based on historical statistical data. In Sogou’s valuation analysis, a multiple of three was applied for management and a multiple of two was applied for other key employees. Sogou estimated the forfeiture rate to be 0% or 1% for the Sogou share options granted to Sogou management and 12% for the Sogou share options granted to Sogou’s other key employees. As Sogou’s ordinary shares had been publicly traded for slightly more than two years as of December 31, 2019, the expected volatility at the valuation date was estimated based on the historical volatility of specified comparable companies for the periods before the grant dates with length commensurate with the expected term of the Sogou share options. Sogou has no history or expectation of paying dividends on its ordinary shares. Accordingly, the dividend yield was estimated to be 0%. Sogou 2017 Share Incentive Plan In October 2017, Sogou adopted a share incentive plan (the “Sogou 2017 Share Incentive Plan”) which provides that the aggregate number of Sogou Class A Ordinary Shares issuable under the plan is 28,000,000. Share incentive awards may be granted under the Sogou 2017 Share Incentive Plan to Sogou’s management and employees and of any of its present or future parents or subsidiaries. The maximum term of any share incentive award granted under the Sogou 2017 Share Incentive Plan is ten years from the grant date. The options contractually granted under the Sogou 2017 Share Incentive Plan may be placed in one of the following two categories: (i) Performance-based options, which vest and become exercisable in four equal installments, with each installment vesting upon a service period requirement being met, as well as the employee grantee’s achievement, as determined by Sogou’s chief executive officer, of performance targets for the corresponding period specified by Sogou’s chief executive officer. For purposes of recognition of share-based compensation expense, each installment is considered to be granted as of the date that the performance targets have been set; or (ii) Service-based options, which vest and become exercisable in four equal installments, with each installment vesting only upon a service period requirement being met. A summary of each of the above two categories of Sogou’s share options as of December 31, 2019 is presented below: Contractually (in thousands) Granted (For Purposes of Share- (in thousands) Vested and (in thousands) Exercised (in thousands) Performance-based options 140 18 14 0 Service-based options 829 829 155 48 Total 969 847 169 48 A summary of Sogou share option activity under the Sogou 2017 Share Incentive Plan as of and for the year ended December 31, 2019 is presented below: Options Number Of Weighted Weighted Aggregate Outstanding as of January 1, 2019 730 $ 0.001 9.57 $ Granted 267 0.001 Exercised (48 ) 0.001 Forfeited or expired (151 ) 0.001 Outstanding as of December 31, 2019 798 0.001 8.90 3,629 Vested as of December 31, 2019 and expected to vest thereafter 638 0.001 8.87 2,904 Exercisable as of December 31, 2019 121 0.001 8.55 551 Note (1): The aggregate intrinsic value in the preceding table represents the difference between the closing price of $4.55 per Sogou ADS (each representing one Class A Ordinary Share) on December 31, 2019 and the exercise prices of the share options. For the years ended December 31, 2019 and 2018, total share-based compensation expense recognized for Sogou share options under the Sogou 2017 Share Incentive Plan was $2.4 million and $1.6 million, respectively. As of December 31, 2019 there was $2.3 million of unrecognized compensation expense related to unvested Sogou share options. The expense is expected to be recognized over a weighted average period of 1.90 years. The method used to determine the fair value of the Sogou share options granted under the Sogou 2017 Share Incentive Plan was the same as the method used for the share options granted under the Sogou 2010 Incentive Plan as described above, except for the assumptions used in the binomial valuation model as presented below: Assumptions Adopted 2018 2019 Average risk-free interest rate 3.41%~3.95 % 2.37%~3.45 % Exercise multiple 2 2~3 Expected forfeiture rate (post-vesting) 12 % 0%~12 % Weighted average expected option life 10 10 Volatility rate 40%~46 % 41%~42 % Dividend yield 0 % 0 % Weighted average fair value of share options 10.09 4.87 Sohu Management Sogou Share Option Arrangement Under an arrangement (the “Sohu Management Sogou Share Option Arrangement”) that was approved by the boards of directors of Sohu and Sogou in March 2011, Sohu has the right to provide to members of Sohu’s Board of Directors, management and other key employees of the Sohu, and certain members of management and other key employees of Sogou the opportunity to purchase from Sohu up to 12,000,000 Sogou Class A Ordinary Shares at a fixed exercise price of $0.625 or $0.001 per share. Of these 12,000,000 Sogou Class A Ordinary Shares, 8,800,000 are Sogou Class A Ordinary Shares previously held by Sohu and 3,200,000 are Sogou Class A Ordinary Shares that were newly-issued on April 14, 2011 by Sogou to Sohu at a price of $0.625 per share, or a total of $2.0 million. As of December 31, 2019, Sohu had contractually granted options for the purchase of 8,305,000 Sogou Class A Ordinary Shares under the Sohu Management Sogou Share Option Arrangement. The options contractually granted under the Sohu Management Sogou Share Option Arrangement may be placed in one of the following two categories: (i) Performance-based options, which vest and become exercisable in four equal installments, with each installment vesting upon a service period requirement being met, as well as the Sogou Group’s achievement of performance targets for the corresponding period. All of these options vested and became exercisable before January 1, 2017. For purposes of recognition of share-based compensation expense, each installment is considered to be granted as of the date that the performance targets have been set; or (ii) Service-based options, which were granted to members of Sohu’s Board of Directors. All of these share options vested and became exercisable in 2015, as the service period requirement had been met. A summary of the above two categories of Sogou’s share options as of December 31, 2019 is presented below: Contractually (in thousands) Granted (For Purposes of Share- (in thousands) Vested and (in thousands) Exercised (in thousands) Performance-based options 8,290 8,290 8,290 8,290 Service-based options 15 15 15 6 Total 8,305 8,305 8,305 8,296 A summary of Sogou share option activity under the Sohu Management Sogou Share Option Arrangement as of and for the year ended December 31, 2019 is presented below: Number Of Weighted Weighted Aggregate Outstanding as of January 1, 2019 9 $ 0.001 6.38 $ Granted 0 Exercised 0 Forfeited or expired 0 Outstanding as of December 31, 2019 9 0.001 5.38 41 Vested as of December 31, 2019 9 0.001 5.38 41 Exercisable as of December 31, 2019 9 0.001 5.38 41 Note (1): The aggregate intrinsic values in the preceding table represent the difference between the closing price of $4.55 per Sogou ADS (each representing one Class A Ordinary Share) on December 31, 2019 and the exercise prices of the options. As all Sogou share options granted under the Sohu Management Sogou Share Option Arrangement vested before January 1, 2017, no share-based compensation expense was recognized for the years ended December 31, 2019, 2018, and 2017. For the years ended December 31, 2019, 2018, and 2017, the total intrinsic value of options exercised was $249, nil, and nil, respectively. Option Modification In the first and second quarter of 2013, a portion of the Sogou share options granted under the Sogou 2010 Share Incentive Plan and the Sohu Management Sogou Share Option Arrangement were exercised early, and the resulting Sogou ordinary shares were transferred to trusts with the original option grantees as beneficiaries. The trusts will distribute the Sogou ordinary shares to those beneficiaries in installments based on the vesting requirements under the original option agreements. Although these trust arrangements caused a modification of the terms of these Sogou share options, the modification was not considered substantive. Accordingly, no incremental fair value related to these Sogou ordinary shares resulted from the modification, and the remaining share-based compensation expense for these Sogou ordinary shares continued to be recognized over the original remaining vesting period. As of December 31, 2019, 3,798,000 Sogou Class A Ordinary Shares issued upon the early exercise of options granted under the Sogou 2010 Share Incentive Plan remained unvested in accordance with the vesting requirements under the original option agreements and 1,722,000 Sogou Class A Ordinary Shares had vested but had not been distributed to the beneficiaries. All Sogou Class A Ordinary Shares issued upon such early exercise that have become vested have been included in the disclosures under the headings “Sogou 2010 Share Incentive Plan” and “Sohu Management Sogou Share Option Arrangement” above. In the first quarter of 2018, Sogou changed the vesting conditions of options for the purchase of 2,181,192 Sogou Class A Ordinary Shares contractually granted under the Sogou 2010 Share Incentive Plan by removing as a condition of vesting Sogou’s achievement of performance targets for the period corresponding to the vesting schedule. Of these options, options for the purchase of 1,601,427 Sogou Class A Ordinary Shares had not been deemed granted, because their performance targets for the current period had not been set, so the removal of the performance targets resulted in these options becoming subject to vesting only upon service-period requirements being met and being deemed granted immediately upon the effectiveness of the changes. For the remaining options for the purchase of 579,765 Sogou Class A Ordinary Shares, which had been deemed granted, the removal of the performance targets constituted a modification. The modification was not considered substantive, because their performance targets had been achieved before the modification. Based on valuation results, no incremental fair value related to these Sogou ordinary shares was recognized in connection with the modification, and the remaining share-based compensation expense for these Sogou ordinary shares continued to be recognized over the remaining vesting period. 3) Changyou.com Limited Share-based Awards Changyou 2008 Share Incentive Plan Changyou’s 2008 Share Incentive Plan (the “Changyou 2008 Share Incentive Plan”) originally provided for the issuance of up to 2,000,000 Changyou ordinary shares, including Changyou ordinary shares issued pursuant to the exercise of share options and upon vesting and settlement of restricted share units. The 2,000,000 reserved Changyou ordinary shares became 20,000,000 Changyou ordinary shares in March 2009 when Changyou effected a ten-for-one All of the restricted Changyou ordinary shares and restricted share units granted under the Changyou 2008 Share Incentive Plan were vested as of December 31, 2017, as the requisite service period for all these awards had been completed. There has been no share-based compensation expense recognized under the Changyou 2008 Share Incentive Plan since then. Changyou 2014 Share Incentive Plan On June 27, 2014, Changyou reserved 2,000,000 of its Class A ordinary shares under the Changyou.com Limited 2014 Share Incentive Plan (the “Changyou 2014 Share Incentive Plan”) for the purpose of making share incentive awards to certain members of its management and key employees. On November 2, 2014, Changyou’s Board approved an increase in the number of Class A ordinary shares reserved under the Changyou 2014 Share Incentive Plan from 2,000,000 to 6,000,000. The maximum term of any share right granted under the Changyou 2014 Share Incentive Plan is ten years from the grant date. The Changyou 2014 Share Incentive Plan will terminate in June 2024. As of December 31, 2019, all shares available for grant under the Changyou 2014 Share Incentive Plan had been granted. i) Summary of Share Option Activity On November 2, 2014, Changyou approved the contractual grant of an aggregate of 2,416,000 Class A restricted share units to certain members of its management and certain other employees. On February 16, 2015, Changyou’s Board of Directors approved the conversion of 2,400,000 of these Class A restricted share units into options for the purchase of Class A ordinary shares at an exercise price of $0.01. On June 1, 2015, Changyou’s Board of Directors approved the contractual grant of options for the purchase of an aggregate of 1,998,000 Class A ordinary shares to certain members of its management and certain other employees at an exercise price of $0.01. On July 28, 2016, Changyou’s Board of Directors approved the contractual grant of options for the purchase of an aggregate of 100,000 Class A ordinary shares to certain member of its management at an exercise price of $0.01. On August 26, 2019, Changyou’s Board of Directors approved the grant, effective as of October 1, 2019, to a member of Changyou’s management and a Changyou employee of options for the purchase of an aggregate of 3,023,000 Class A ordinary shares at an exercise price of $0.01 per Class A ordinary share. These Changyou share options vest in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and the achievement of certain subjective performance targets. These Changyou share options are substantially similar to restricted share units except for the nominal exercise price, which would be zero for restricted share units. Under ASC 718-10-25 ASC 718-10-55 re-measured To determine the fair value of these Changyou share options, the public market price of the underlying Changyou Class A ordinary shares at each reporting date is used and a binomial valuation model is applied. As of December 31, 2019, 2,952,000 of these Changyou share options had been granted and had become vested on their respective vesting dates, as a mutual understanding of the subjective performance targets had been reached between Changyou and the recipients, the targets had been satisfied, and the service period requirements had been fulfilled. The cumulative share-based compensation expense of $36.4 million for these granted share options was adjusted and fixed based on the aggregate amounts of the fair values of these granted share options at their respective grant dates. A summary of share option activity under the Changyou 2014 Share Incentive Plan as of and for the year ended December 31, 2018 is presented below: Number Of Weighted Weighted Aggregate Outstanding as of January 1, 2019 601 $ 0.01 5.98 $ 5.487 Granted 234 0.01 Exercised (762 ) 0.01 Forfeited or expired 0 Outstanding as of December 31, 2019 73 0.01 5.42 357 Vested as of December 31, 2019 73 0.01 357 Exercisable as of December 31, 2019 73 0.01 Note (1): The aggregate intrinsic value in the preceding table represents the difference between Changyou’s closing price of $9.79 per ADS, or $4.9 per Class A ordinary share, on December 31, 2019 and the nominal exercise price of the share option. For the years ended December 31, 2019, 2018 and 2017, total share-based compensation expense recognized for these share options under the Changyou 2014 Share Incentive Plan was negative $1.9 million, negative $6.5 million and $17.4 million, respectively. For the years ended December 31, 2019, 2018 and 2017, the total fair values of these Changyou share options vested on their respective vesting dates were $1.0 million, $5.7 million and $14.8 million, respectively. For the years ended December 31, 2019, 2018 and 2017, the total intrinsic value of share options exercised was $6.6 million, $14.9 million and $10.3 million, respectively. Changyou 2019 Share Incentive Plan On August 3, 2019, Changyou adopted and reserved for issuance 3,000,000 Class A ordinary shares under a new share incentive plan (the “Changyou 2019 Share Incentive Plan”). On August 26, 2019, Changyou’s Board of Directors approved the grant, effective as of October 1, 2019, to certain members of the Changyou’s management and certain other employees of options for the purchase of an aggregate of 1,909,000 Class A ordinary shares at an exercise price of $0.01. These Changyou share options vest in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and the achievement of certain subjective performance targets. Under ASC 718-10-25 ASC 718-10-55 re-measured To determine the fair value of these Changyou share options, the public market price of the underlying Changyou Class A ordinary shares at each reporting date is used and a binomial valuation model is applied. As of December 31, 2019, none of the Changyou share options granted under the Changyou 2019 Share Incentive Plan had vested. The cumulative share-based compensation expense of $3.2 million for these granted share options was adjusted and fixed based on the aggregate amounts of the fair values of these granted share options at their respective grant dates. 4) Sohu Video Share-based Awards On January 4, 2012, Sohu Video adopted the Video 2011 Share Incentive Plan, under which 25,000,000 ordinary shares of Sohu Video are reserved for the purpose of making share incentive awards to management and key employees of Sohu Video and to Sohu management. The maximum term of any share incentive award granted under the Video 2011 Share Incentive Plan is ten years from the grant date. The Video 2011 Share Incentive Plan will expire on January 3, 2022. As of December 31, 2019, grants of options for the purchase of 16,368,200 ordinary shares of Sohu Video had been contractually made and were subject to vesting in four equal installments, with each installment vesting upon a service period requirement being met, as well as Sohu Video’s achievement of performance targets for the corresponding period. For purposes of ASC 718-10-25 For the years ended December 31, 2019, 2018 and 2017, total share-based compensation expense recognized for vested Sohu Video options under the Video 2011 Share Incentive Plan was negative $0.9 million, negative $0.5 million and $0.3 million, respectively. The fair value as of December 31, 2019 of the Sohu Video options contractually granted to management and key employees of Sohu Video and to Sohu management was estimated on the reporting date using the binomial valuation model, with the following assumptions used: Assumptions Adopted 2018 2019 Average risk-free interest rate 3.19 % 2.44 % Exercise multiple 2.8 2.8 Expected forfeiture rate (post-vesting) 14 % 14 % Weighted average expected option life 3.0 2.0 Volatility rate 45.1 % 53.9 % Dividend yield 0 0 Fair value 0.53 0.35 |
Noncontrolling Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2019 | |
NONCONTROLLING INTEREST [Abstract] | |
Noncontrolling Interest | 20. NONCONTROLLING INTEREST Prior to the completion of the Changyou Merger on April 17, 2020, the noncontrolling interests in the Sohu GroupÂ’s consolidated financial statements primarily consist of noncontrolling interests for Sogou and Changyou. Noncontrolling Interest in the Consolidated Balance Sheets As of December 31, 2018 and 2019, noncontrolling interest in the consolidated balance sheets was $0.96 billion and $0.88 billion, respectively. As of December 31, 2018 2019 Sogou $ 686,503 $ 726,960 Changyou 277,608 151,503 Total $ 964,111 $ 878,463 Noncontrolling Interest of Sogou As of December 31, 2019 and 2018, noncontrolling interest of Sogou of $727.0 million and $686.5 million, respectively, was recognized in the Sohu GroupÂ’s consolidated balance sheets, representing an economic interest of 66% and 67%, respectively, in SogouÂ’s net assets held by shareholders other than Sohu and reflecting the reclassification of SogouÂ’s share-based compensation expense from shareholdersÂ’ additional paid-in Noncontrolling Interest of Changyou As of December 31, 2019 and 2018, noncontrolling interest of Changyou of $151.5 million and $277.6 million, respectively, was recognized in the Sohu GroupÂ’s consolidated balance sheets, both representing an economic interest of 33% for 2019 and 2018, respectively, in ChangyouÂ’s net assets held by shareholders other than Sohu and reflecting the reclassification of ChangyouÂ’s share-based compensation expense from shareholdersÂ’ additional paid-in Noncontrolling Interest in the Consolidated Statements of Comprehensive Income /(Loss) For the years ended December 31, 2019, 2018 and 2017, respectively, the Sohu Group had net income of $105.9 million, net income of $92.7 million and net income of $84.5 million, respectively, attributable to the noncontrolling interest in the consolidated statements of comprehensive income /(loss). Year Ended December 31, 2017 2018 2019 Sogou $ 77,025 $ 65,586 $ 58,955 Changyou 7,603 27,137 46,990 Other (105 ) 0 0 Total $ 84,523 $ 92,723 $ 105,945 Year Ended December 31, 2017 2018 2019 Net income from continuing operations attributable to noncontrolling shareholders $ 91,076 $ 107,318 $ 117,177 Net loss from discontinued operations attributable to noncontrolling shareholders (6,553 ) (14,595 ) (11,232 ) Net income attributable to noncontrolling interest shareholders $ 84,523 $ 92,723 $ 105,945 Noncontrolling Interest of Sogou For the years ended December 31, 2019, 2018 and 2017, respectively, a $59.0 million net income, a $65.6 million net income and a $77.0 million net income, respectively, attributable to the noncontrolling interest of Sogou was recognized in the Sohu GroupÂ’s consolidated statements of comprehensive income, representing SogouÂ’s net income /(loss) attributable to shareholders other than Sohu. Noncontrolling Interest of Changyou For the years ended December 31, 2019, 2018 and 2017, respectively, a $47.0 million net income, a $27.1 million net income and a $7.6 million net income, respectively, attributable to the noncontrolling interest of Changyou was recognized in the Sohu GroupÂ’s consolidated statements of comprehensive income /(loss), representing a 33%, 33% and 32%, economic interest, respectively, in Changyou attributable to shareholders other than Sohu. |
Net Income _(Loss) per Share
Net Income /(Loss) per Share | 12 Months Ended |
Dec. 31, 2019 | |
NET INCOME /(LOSS) PER SHARE [Abstract] | |
Net Income /(Loss) per Share | 21. NET INCOME /(LOSS) PER SHARE Basic net income /(loss) per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted net income /(loss) per share is computed using the weighted average number of ordinary shares and, if dilutive, potential ordinary shares outstanding during the period. Potential ordinary shares comprise shares issuable upon the exercise or settlement of share-based awards using the treasury stock method. The dilutive effect of share-based awards with performance requirements is not considered before the performance targets are actually met. The computation of diluted net income /(loss) per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net income /(loss) per share. For the years ended December 31, 2017, 2018 and 2019, 263,497, 292,622 and 140,405 ordinary shares, respectively, potentially issuable upon the exercise or settlement of share-based awards using the treasury stock method were anti-dilutive and excluded from the denominator for calculation of diluted net loss per share. Additionally, for purposes of calculating the numerator of diluted net income /(loss) per share, the net income /(loss) attributable to the Sohu Group is calculated as discussed below. The adjustment will not be made if there is an anti-dilutive effect. Sogou’s Net Income /(Loss) Attributable to Sohu Before Sogou’s IPO Before Sogou’s IPO, Sogou’s net income /(loss) attributable to Sohu was determined using the percentage that the weighted average number of Sogou shares held by Sohu represented of the weighted average number of Sogou Pre-IPO Preferred Shares and Sogou Pre-IPO if-converted After Sogou’s IPO After Sogou’s IPO, Sogou’s net income /(loss) attributable to Sohu is determined using the percentage that the weighted average number of Sogou shares held by Sohu represents of the weighted average number of Sogou ordinary shares and shares issuable upon the exercise or settlement of share-based awards under the treasury stock method, and not by using the percentage held by Sohu of the total economic interest in Sogou, which is used for the calculation of basic net income per share. In the calculation of Sohu’s diluted net income /(loss) per share, assuming a dilutive effect, the percentage of Sohu’s shareholding in Sogou was calculated by treating convertible preferred shares issued by Sogou as having been converted at the beginning of the period and unvested Sogou share options with the performance targets achieved as well as vested but unexercised Sogou share options as having been exercised during the period. The dilutive effect of share-based awards with a performance requirement was not considered before the performance targets were actually met. The effect of this calculation is presented as “incremental dilution from Sogou” in the table below. Assuming an anti-dilutive effect, all of these Sogou shares and share options are excluded from the calculation of Sohu’s diluted income /(loss) per share. As a result, Sogou’s net income /(loss) attributable to Sohu on a diluted basis equals the number used for the calculation of Sohu’s basic net income /(loss) per share. For the year ended December 31, 2019, all of the Sogou share options had a dilutive effect, and therefore were included in the calculation of Sohu.com Limited’s diluted net income /(loss) per share. This impact is presented as “incremental dilution from Sogou” in the table below. Changyou’s Net Income /(Loss) Attributable to Sohu Prior to the completion of the Changyou Merger on April 17, 2020, Changyou’s net income /(loss) attributable to Sohu is determined using the percentage that the weighted average number of Changyou shares held by Sohu represents of the weighted average number of Changyou ordinary shares and shares issuable upon the exercise or settlement of share-based awards under the treasury stock method, and not by using the percentage held by Sohu of the total economic interest in Changyou, which is used for the calculation of basic net income per share. In the calculation of Sohu’s diluted net income /(loss) per share, assuming a dilutive effect, all of Changyou’s existing unvested restricted share units and share options, and vested restricted share units and share options that have not yet been settled, are treated as vested and settled by Changyou under the treasury stock method, causing the percentage of the weighted average number of shares held by Sohu in Changyou to decrease. As a result, Changyou’s net income /(loss) attributable to Sohu on a diluted basis decreased accordingly. The effect of this calculation is presented as “incremental dilution from Changyou” in the table below. Assuming an anti-dilutive effect, all of these Changyou restricted share units and share options are excluded from the calculation of Sohu’s diluted net income /(loss) per share. As a result, Changyou’s net income /(loss) attributable to Sohu on a diluted basis equals the number used for the calculation of Sohu’s basic net income /(loss) per share. For the year ended December 31, 2019, all of these Changyou restricted share units and share options had a dilutive effect, and therefore were included in the calculation of Sohu.com Limited’s diluted net income /(loss) per share. This impact is presented as “incremental dilution from Changyou” in the table below. The following table presents the calculation of the Sohu Group’s basic and diluted net loss per share (in thousands, except per share data). Year Ended December 31, 2017 2018 2019 Numerator: Net loss from continuing operations attributable to Sohu.com Limited, basic $ (540,548 ) $ (129,842 ) $ (126,570 ) Net loss from discontinued operations attributable to Sohu.com Limited, basic (13,978 ) (30,240 ) (22,766 ) Net loss attributable to Sohu.com Limited, basic (554,526 ) $ (160,082 ) (149,336 ) Effect of dilutive securities: Incremental dilution from Sogou (31 ) (496 ) (606 ) Incremental dilution from Changyou (1,233 ) (381 ) (507 ) Net loss from continuing operations attributable to Sohu.com Limited, diluted (542,026 ) (130,960 ) (127,738 ) Net loss from discontinued operations attributable to Sohu.com Limited, diluted (13,764 ) (29,999 ) (22,711 ) Net loss attributable to Sohu.com Limited, diluted $ (555,790 ) $ (160,959 ) $ (150,449 ) Denominator: Weighted average basic ordinary shares outstanding 38,858 38,959 39,249 Effect of dilutive securities: Share options and restricted share units 0 0 0 Weighted average diluted ordinary shares outstanding $ 38,858 $ 38,959 $ 39,249 Basic net loss per share attributable to Sohu.com Limited Continuing operations $ (13.91 ) $ (3.33 ) $ (3.22 ) Discontinued operations (0.36 ) (0.78 ) (0.58 ) Net loss per share (14.27 ) (4.11 ) (3.80 ) Diluted net loss per share attributable to Sohu.com Limited Continuing operations $ (13.95 ) $ (3.36 ) $ (3.25 ) Discontinued operations (0.35 ) (0.77 ) (0.58 ) Net loss per share (14.30 ) (4.13 ) (3.83 ) |
China Contribution Plan
China Contribution Plan | 12 Months Ended |
Dec. 31, 2019 | |
CHINA CONTRIBUTION PLAN [Abstract] | |
China Contribution Plan | 22. CHINA CONTRIBUTION PLAN The Sohu GroupÂ’s subsidiaries and consolidated VIEs in China participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese labor regulations require the GroupÂ’s subsidiaries and consolidated VIEs to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the GroupÂ’s China-based subsidiaries and consolidated VIEs have no further commitments beyond their monthly contributions. For the years ended December 31, 2019, 2018 and 2017, the GroupÂ’s China based subsidiaries and consolidated VIEs contributed a total of $141.4 million, $150.6 million and $137.5 million, respectively, to these funds. |
Profit Appropriation
Profit Appropriation | 12 Months Ended |
Dec. 31, 2019 | |
PROFIT APPROPRIATION [Abstract] | |
Profit Appropriation | 23. PROFIT APPROPRIATION The Sohu Group’s China-based subsidiaries and VIEs are required to make appropriations to certain non-distributable On March 15, 2019, the Standing Committee of the National People’s Congress of the PRC issued the Law of the People’s Republic of China on Foreign Investment Law of the People’s Republic of China on Foreign Investment Enterprises Implementing Regulations of the Foreign Investment Law., Under the China Foreign Investment Enterprises Laws and its supplemental regulations those of the Group’s China-based subsidiaries that are considered under PRC law to be WFOEs are required to make appropriations from their after-tax “after-tax-profit non-distributable after-tax-profit after-tax-profit non-distributable Pursuant to the Company Law, those of the Group’s China-based subsidiaries that are considered under PRC law to be domestically funded enterprises, as well as the Group’s VIEs, are required to make appropriations from their after-tax-profit non-distributable after-tax-profit Upon certain regulatory approvals and subject to certain limitations, the general reserve fund and the statutory surplus fund can be used to offset prior year losses, if any, and can be converted into paid-in capital of the applicable entity. For the years ended December 31, 2019, 2018 and 2017, the total amount of profits contributed to these funds by the Group was $10.4 million, $7.3 million and $12.0 million, respectively. As of December 31, 2019 and 2018, the total amount of profits contributed to these funds by the Group was $80.7 million and $70.3 million, respectively. As a result of these and other restrictions under PRC laws and regulations, the Group’s China-based subsidiaries and VIEs are restricted in their ability to transfer a portion of their net assets in the form of non-distributable |
Concentration Risks
Concentration Risks | 12 Months Ended |
Dec. 31, 2019 | |
CONCENTRATION RISKS [Abstract] | |
Concentration Risks | 24. CONCENTRATION RISKS Because its operations are substantially conducted in the PRC, the Sohu Group is subject to PRC-related Operation Risk For the years ended December 31, 2019, 2018 and 2017, there were no revenues from customers that individually represent greater than 10% of the total online advertising revenues. For the year ended December 31, 2019, revenues from TLBB were $215.2 million, accounting for approximately 49% of ChangyouÂ’s online game revenues, approximately 47% of ChangyouÂ’s total revenues and approximately 12% of the Sohu GroupÂ’s total revenues. For the year ended December 31, 2019, revenues from Legacy TLBB Mobile were $101.1 million, accounting for approximately 23% of ChangyouÂ’s online game revenues, approximately 22% of ChangyouÂ’s total revenues, and approximately 5% of the Sohu GroupÂ’s total revenues. Financial instruments that potentially subject the Sohu Group to concentration risks consist primarily of cash and cash equivalents and short-term investments. Cash and cash equivalents in Sohu Group are mainly denominated in RMB and in U.S. dollars. Short-term investments are denominated in RMB. The Group may experience economic losses and negative impacts on earnings and equity as a result of fluctuations in the exchange rate between the U.S. dollar and the RMB. Moreover, the Chinese government imposes controls on the convertibility of RMB into foreign currencies and, in certain cases, the remittance of currency out of the PRC. The Group may experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currency. Credit Risk As of December 31, 2019, approximately 64% of the Sohu GroupÂ’s cash and cash equivalents and short-term investments were held in 23 financial institutions in Mainland China. The remaining cash and cash equivalents and short-term investments were held primarily in financial institutions in Hong Kong and Macao. As of December 31, 2018, approximately 60% of the Sohu GroupÂ’s cash and cash equivalents and short-term investments were held in 17 financial institutions in Mainland China. The remaining cash and cash equivalents and short-term investments were held primarily in financial institutions in Hong Kong and Macao. The Sohu Group holds its cash and bank deposits at Chinese financial institutions that are among the largest and most respected in the PRC and at international financial institutions with high ratings from internationally-recognized rating agencies. The management chooses these institutions because of their reputations and track records for stability, and their known large cash reserves, and management periodically reviews these institutionsÂ’ reputations, track records, and reported reserves. Management expects that any additional institutions that the Sohu Group uses for its cash and bank deposits will be chosen with similar criteria for soundness. As a further means of managing its credit risk, the Sohu Group holds its cash and bank deposits in a number of different financial institutions. As of December 31, 2019 and 2018, the Sohu Group held its cash and bank deposits in different financial institutions and held no more than approximately 24% and 35%, respectively, of its total cash at any single institution. Under PRC law, it is generally required that a commercial bank in the PRC that holds third party cash deposits protect the depositorsÂ’ rights over and interests in their deposited money; PRC banks are subject to a series of risk control regulatory standards; and PRC bank regulatory authorities are empowered to take over the operation and management of any PRC bank that faces a material credit crisis. For the credit risk related to accounts receivable, the Sohu Group performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. Historically, such losses have been within managementÂ’s expectations. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2019 | |
RESTRICTED NET ASSETS [Abstract] | |
Restricted Net Assets | 25. RESTRICTED NET ASSETS Relevant PRC law and regulations permit payment of dividends by PRC-based PRC-based after-tax PRC-based PRC-based |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
SUBSEQUENT EVENTS [Abstract] | |
Subsequent Events | 26. SUBSEQUENT EVENTS The outbreak of the novel coronavirus disease that has been designated as COVID-19, which emerged in late December 2019 and has spread around the world in 2020, has affected economic activity across many industries in China, including the online advertising industry. Measures imposed by the PRC government, including travel restrictions, school closings, extended holidays, and requirements that most business be conducted remotely, have interrupted the operation of businesses in various areas. This, in turn, has caused a reduction in the Company’s advertising revenues, and an increase in traffic acquisition costs of Sogou, both of which have had and could continue to have an adverse effect on the Company’s results of operations. As the future extent and effect of the COVID-19 virus in China and the world are difficult to predict, the related financial impact on the Company’s future results of operations cannot be reasonably estimated at this time. On April 3, 2020, the Company’s indirect wholly-owned subsidiary Sohu Game, as borrower, and Sohu.com Limited, as guarantor, entered into a facility agreement (the “Facility Agreement”) with ICBC Tokyo pursuant to which ICBC Tokyo agreed to provide a term loan facility of up to $250 million (the “Term Facility”), subject to customary conditions, to be used to finance the consummation of the Changyou Merger and the related transactions and to pay related fees and expenses associated with the Changyou Merger. The Term Facility will consist of (i) a one-year term facility for term loans of up to $100 million (the “One-Year Facility”) and (ii) a four-year term facility for term loans of up to $150 million (the “Four-Year Facility”). The outstanding principal amount of the loans under the One- Year Facility will be due in full on the one-year anniversary of the date of the first utilization of the One-Year Facility. The outstanding principal amount of the loans under the Four-Year Facility will be due in installments, with $7.5 million due and payable at the end of each of the second and third calendar years during the term of the Four-Year Facility and the remaining outstanding principal amount due and payable on the fourth anniversary of the date of the first utilization of the One-Year Facility. The Term Facility will be available for drawdown from the date of the Facility Agreement until six months after the date of the Facility Agreement, and the Term Facility may be drawn in up to three installments by Sohu Game at its election. The Term Facility bears interest at a rate of Three Month LIBOR plus a margin of 1.75%, with LIBOR to be determined by ICBC on the basis of the London InterBank Offered Rate published two business days before the first day of each three calendar month interest period. Accrued interest will be paid every three calendar months on the first day after the end of each such three-month interest period. The obligations of Sohu Game as borrower under the Term Facility are initially fully guaranteed by Sohu.com Limited, and are initially secured by first priority share pledges or mortgages over 97.9% of the outstanding equity interests in Changyou. In addition, Sohu Game is required to cause Changyou, within one (1) month after the initial funding under the Term Facility, to pledge a deposit certificate evidencing an RMB deposit equivalent to not less $125 million at an exchange rate of $1.00 = RMB7.20 and, within three months after the initial funding under the Term Facility, to pledge RMB deposit certificates evidencing amounts at least equivalent to the Facility Agreement amount (including the initial $125 million-equivalent deposit certificate). Upon the effectiveness of such additional pledge, Sohu’s guarantee and all share pledges or mortgages over the outstanding equity interests in Changyou will be released and discharged. On April 16, 2020, Sohu Game made a drawdown in the amount of $192 million under this Term Facility. On April 17, 2020, the Company completed the acquisition of all outstanding shares of Changyou that Sohu did not already beneficially own, through the Changyou Merger, in which Sohu’s newly-formed indirectly wholly-owned subsidiary Changyou Merger Co. merged with and into Changyou.com Limited, with Changyou.com Limited being the surviving company. Pursuant to the plan of merger for the Changyou Merger, each Class A ordinary share of Changyou (each, a “Changyou Class A Ordinary Share”) issued and outstanding immediately prior to the effectiveness of the Changyou Merger, other than the Class A ordinary shares held by the Company, was cancelled in exchange for the right to receive $5.40 in cash without interest, and each outstanding American depositary share of Changyou (each a “Changyou ADS,” representing two Changyou Class A Ordinary Shares) was cancelled in exchange for the right to receive $10.80 in cash without interest. Because Changyou Merger Co. owned over 90% of the voting power represented by all issued and outstanding shares of Changyou prior to the effectiveness of the Changyou Merger and the Changyou Merger was in the form of a short-form merger in accordance with section 233(7) of the Companies Law of the Cayman Islands, the Changyou Merger was not subject to a vote of the shareholders of Changyou. As a result of the Changyou Merger Changyou has become a privately-owned company wholly owned directly and indirectly by Sohu and Changyou ADSs are no longer listed on the Nasdaq Global Select Market. The Group has performed an evaluation of subsequent events through the date of this report, which is the date the financial statements were issued, with no other material events or transactions needing recognition or disclosure found. |
Additional Information - Conden
Additional Information - Condensed Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
ADDITIONAL INFORMATION - CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract] | |
Additional - Condensed Financial Information of Registrant | 27. ADDITIONAL INFORMATION — CONDENSED FINANCIAL STATEMENTS The condensed financial statements of Sohu.com Limited have been prepared in accordance with Securities and Exchange Commission Regulation S-X 5-04 12-04. The Company records its investments in subsidiaries and VIEs under the equity method of accounting. Such investments and long-term loans to subsidiaries and VIEs are presented on the balance sheet as “Interests in subsidiaries and VIEs” and the loss of the subsidiaries and VIEs is presented as “Share of loss of subsidiaries and VIEs” in the statement of comprehensive income. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these financial statements should be read in conjunction with the notes to the Consolidated Financial Statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. As of December 31, 2018 and 2019, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except for those, if any, which have been separately disclosed in the consolidated financial statements. SOHU.COM LIMITED CONDENSED BALANCE SHEETS (In thousands) As of December 31, 2018 2019 ASSETS Current assets: Cash and cash equivalents $ 16,492 $ 3,756 Prepaid and other current assets 1,169 744 Due from subsidiaries and VIEs 470,649 530,182 Total current assets 488,310 534,682 Interests in subsidiaries and VIEs 224,679 22,093 Other assets, net 27,736 27,736 Total assets $ 740,725 $ 584,511 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities 7,472 3,757 Long-term liabilities 144,414 152,300 Total liabilities 151,886 156,057 Shareholders’ equity: Ordinary Shares: $0.001 par value per share (75,400 shares authorized; 39,229 shares and 39,269 shares, respectively, issued and outstanding as of December 31, 2018 and 2019) 39 39 Additional paid-in 958,883 948,201 Accumulated other comprehensive income 24,718 24,351 Accumulated deficit (394,801 ) (544,137 ) Total shareholders’ equity 588,839 428,454 Total liabilities and shareholders’ equity $ 740,725 $ 584,511 SOHU.COM LIMITED CONDENSED STATEMENTS OF COMPREHENSIVE LOSS (In thousands) Year Ended December 31, 2017 2018 2019 Revenues $ 0 $ 0 $ 0 Cost of revenues 0 0 0 Gross profit 0 0 0 Operating expenses: General and administrative 8,824 12,206 2,320 Operating loss (8,824 ) (12,206 ) (2,320 ) Share of loss of subsidiaries and VIEs (331,106 ) (232,307 ) (184,092 ) Other income /(expense) 71 22 44,738 Interest income 152 5,865 225 Loss before income tax expense/(benefit) (339,707 ) (238,626 ) (141,449 ) Income tax expense/(benefit) 214,819 (78,544 ) 7,887 Net loss (554,526 ) (160,082 ) (149,336 ) Other comprehensive income /(loss) 34,992 (13,494 ) 24,351 Comprehensive loss $ (519,534 ) $ (173,576 ) $ (124,985 ) SOHU.COM LIMITED CONDENSED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2017 2018 2019 Cash flows from operating activities: Net loss $ (554,526 ) $ (160,082 ) $ (149,336 ) Adjustments to reconcile net loss to net cash provided by operating activities: Investment loss from subsidiaries and VIEs 331,106 232,307 184,092 Share-based compensation expense /(benefit) (814 ) (1,916 ) 395 Others 0 (993 ) 0 Changes in current assets and liabilities: Due from subsidiaries and VIEs 0 (2,963 ) (59,533 ) Prepaid and other current assets 3,933 (3,996 ) 425 Tax liabilities 222,350 (79,569 ) 7,886 Accrued liabilities (8,194 ) 1,892 (3,715 ) Net cash used in operating activities (6,145 ) (15,320 ) (19,786 ) Cash flows from investing activities: Dividend received 0 0 7,050 Net cash used in operating activities 0 0 7,050 Net decrease in cash, cash equivalents, restricted cash and restricted time deposits (6,145 ) (15,320 ) (12,736 ) Cash, cash equivalents, restricted cash and restricted time deposits at beginning of year 8,990 2,845 16,732 Cash and cash equivalents, restricted cash and restricted time deposits of Sohu.com Limited at the date of the liquidation of Sohu.com Inc. 0 29,207 0 Cash, cash equivalents, restricted cash and restricted time deposits at end of year $ 2,845 $ 16,732 $ 3,996 Reconciliation of cash, cash equivalents, and restricted time deposits to the condensed balance sheets: Cash and cash equivalents $ 2,845 $ 16,492 $ 3,756 Restricted time deposits included in other assets 0 240 240 Total cash, cash equivalents, restricted cash and restricted time deposits at end of year $ 2,845 $ 16,732 $ 3,996 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Polices) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Accounting Standards | Accounting Standards The consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”) to reflect the financial position and results of operations of the Sohu Group. |
Discontinued operations | Discontinued operations A component of a reporting entity or a group of components of a reporting entity that are disposed of or meet the criteria to be classified as held for sale should be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entityÂ’s operations and financial results. Discontinued operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed of, if the component either (1) represents a strategic shift or (2) has a major impact on an entityÂ’s financial results and operations. In the statement of financial position, the assets and liabilities of the discontinued operation are presented separately in the asset and liability sections, respectively, of the statement of financial position and prior periods are presented on a comparative basis. In the consolidated statements of comprehensive income, results from discontinued operations are reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. Cash flows for discontinued operations are presented separately in the consolidated statements of cash flows. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations. |
Use of Estimates | Use of Estimates The preparation of these financial statements requires the Sohu Group to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going |
Basis of Consolidation and Recognition of Noncontrolling Interest | Basis of Consolidation and Recognition of Noncontrolling Interest The Sohu Group’s consolidated financial statements include the accounts of the Company and its subsidiaries and consolidated VIEs. All intra-Group transactions are eliminated. VIE Consolidation The Sohu Group’s VIEs are wholly or partially owned by certain employees of the Group as nominee shareholders. For consolidated VIEs, management made evaluations of the relationships between the Sohu Group and the VIEs and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluation, management also took into account the fact that, as a result of such contractual arrangements, the Group controls the shareholders’ voting interests in these VIEs. As a result of such evaluation, management concluded that the Sohu Group is the primary beneficiary of its consolidated VIEs. Noncontrolling Interest Recognition Noncontrolling interests are recognized to reflect the portion of the equity of subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholders. Currently, the noncontrolling interests in the Sohu Group’s consolidated financial statements primarily consist of noncontrolling interests for Sogou and Changyou. Noncontrolling Interest for Sogou Prior to the completion of Sogou’s IPO in November 2017, the Company controlled the election of a majority of the Board of Directors of Sogou pursuant to a shareholders’ agreement that expired upon the completion of the IPO. Following the completion of Sogou’s IPO, pursuant to the Voting Agreement and Sogou’s Amended and Restated Articles of Association, the Company still has the right to appoint a majority of Sogou’s Board of Directors. As Sogou’s controlling shareholder, the Company consolidates Sogou in its consolidated financial statements, and recognizes noncontrolling interest reflecting economic interests in Sogou held by shareholders other than it (the “Sogou noncontrolling shareholders”). Sogou’s net income /(loss) attributable to the Sogou noncontrolling shareholders is recorded as noncontrolling interest in its consolidated statements of comprehensive income. Noncontrolling Interest Recognition before Sogou’s IPO Based on the principles of allocation of Sogou’s profit and loss set forth below, Sogou’s cumulative results of operations attributable to the Sogou noncontrolling shareholders, along with changes in shareholders’ equity/(deficit) and adjustments for share-based compensation expense in relation to those share-based awards that were unvested and vested but not yet settled and the Sogou noncontrolling shareholders’ investments in Sogou Series A Preferred Shares outstanding before Sogou’s IPO (“Sogou Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Principles of Allocation of Sogou’s Profit and Loss - By virtue of the terms of the Sogou Pre-IPO Pre-IPO Pre-IPO (i) net losses were allocated to holders of the Sogou Pre-IPO Pre-IPO (ii) additional net losses were allocated to holders of the Sogou Pre-IPO (iii) additional net losses were allocated to the holder of the Sogou Pre-IPO (iv) further net losses were allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou. Net income from Sogou was allocated in the following order before Sogou’s IPO: (i) net income was allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou until their basis in Sogou increased to zero; (ii) additional net income was allocated to the holder of the Sogou Pre-IPO (iii) additional net income was allocated to holders of the Sogou Pre-IPO (iv) further net income was allocated to holders of the Sogou Pre-IPO Pre-IPO (v) further net income was allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou. Noncontrolling Interest Recognition after Sogou’s IPO Sogou’s cumulative results of operations attributable to the Sogou noncontrolling shareholders, based on their share of the economic interest in Sogou, along with changes in shareholders’ equity and adjustment for share-based compensation expense in relation to share-based awards that are unvested and vested but not yet settled and adjustment for changes in the Sohu Group’s ownership percentage in Sogou, are recorded as noncontrolling interest in the Sohu Group’s consolidated balance sheets. Noncontrolling Interest for Changyou As Changyou’s controlling shareholder, Sohu consolidates Changyou in its consolidated financial statements and, prior to the completion of the Changyou Merger on April 17, 2020, also recognizes noncontrolling interest reflecting the economic interest in Changyou held by Changyou noncontrolling shareholders. Changyou’s net income /(loss) attributable to the Changyou noncontrolling shareholders is recorded as noncontrolling interest in the Sohu Group’s consolidated statements of comprehensive income, based on the noncontrolling shareholders’ share of the economic interest in Changyou. Changyou’s cumulative results of operations attributable to the Changyou noncontrolling shareholders, along with changes in shareholders’ equity, adjustment for share-based compensation expense in relation to those share-based awards which are unvested and vested but not yet settled and adjustment for changes in the Company’s ownership in Changyou, are recorded as noncontrolling interest in the Sohu Group’s consolidated balance sheets. Segment Reporting The Sohu Group’s segments are business units that offer different services and are reviewed separately by the chief operating decision maker (the “CODM”), or the decision-making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM is the Company’s Chief Executive Officer. |
Revenue Recognition | Revenue Recognition Impact of Adoption of ASC 606 On January 1, 2018, the Sohu Group adopted ASC 606, applying the modified retrospective method to contracts that were not completed as of January 1, 2018. The adoption of ASC 606 did not have a material impact on the Company’s accumulated deficit as of January 1, 2018. Results for reporting periods beginning on or after January 1, 2018 are presented under ASC 606, while prior-period amounts are not adjusted and continue to be reported in accordance with the Group’s historic accounting under ASC 605. Under ASC 605, advertising-for-advertising advertising-for-advertising Under ASC 606, revenues are recognized when control of the promised goods or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The recognition of revenues involves certain management judgments, including estimated lives of virtual items purchased by game players, the estimation of the fair value of an advertising-for-advertising licensed-out The following table presents the Group’s revenues disaggregated by products and services: Year Ended December 31, 2017 (in thousands) Sohu Sogou Changyou Total Brand advertising: Sohu Media Portal $ 152,015 0 0 152,015 Sohu Video 79,756 0 0 79,756 Focus 57,245 0 0 57,245 17173.com Website 0 0 25,096 25,096 Search and search related advertising 0 801,199 0 801,199 Online games: PC games 0 0 239,149 239,149 Mobile games 0 0 208,355 208,355 Other games 0 0 2,029 2,029 Others 83,758 106,807 14,180 204,745 Total $ 372,774 908,006 488,809 1,769,589 Year Ended December 31, 2018 (in thousands) Sohu Sogou Changyou Total Brand advertising: Sohu Media Portal $ 127,348 0 0 127,348 Sohu Video 53,756 0 0 53,756 Focus 31,144 0 0 31,144 17173.com Website 0 0 19,697 19,697 Search and search related advertising 0 1,022,456 0 1,022,456 Online games: PC games 0 0 236,743 236,743 Mobile games 0 0 151,737 151,737 Other games 0 0 1,308 1,308 Others 61,975 100,589 6,074 168,638 Total $ 274,223 1,123,045 415,559 1,812,827 Year Ended December 31, 2019 (in thousands) Sohu Sogou Changyou Total Brand advertising: Sohu Media Portal $ 94,497 0 0 94,497 Sohu Video 34,529 0 0 34,529 Focus 32,120 0 0 32,120 17173.com Website 0 0 13,715 13,715 Search and search related advertising 0 1,072,860 0 1,072,860 Online games: PC games 0 0 267,752 267,752 Mobile games 0 0 172,718 172,718 Other games 0 0 432 432 Others 57,080 98,981 763 156,824 Total $ 218,226 1,171,841 455,380 1,845,447 As noted above, in accordance with the modified retrospective method upon adoption of ASC 606, amounts for 2017 were not adjusted. Online Advertising Revenues Online advertising revenues include revenues from brand advertising services as well as search and search-related advertising services. Certain customers may receive sales rebates, which are accounted for as variable consideration. The Group estimates annual the expected revenue volume from each agent with reference to its historical results. Sales rebates will reduce revenues recognized. The Group recognizes revenue for the amount of fees it receives from its advertisers, after deducting sales rebates and net of value-added tax (“VAT”). The Group believes that there will not be significant changes to its estimates of variable consideration. Brand Advertising Revenues Revenue Recognition of Multiple Performance Obligations The Group’s contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenues to each performance obligation based on its relative standalone selling price. The Group generally determines the standalone selling price of each distinct performance obligation based on the prices charged to customers when sold on a standalone basis. Where a standalone selling price is not directly observable, the Group generally estimates the selling price based on the prices at which performance obligations of a similar nature and geography are charged to customers. Most of such contracts have all performance obligations completed within the same quarter. Pricing Model Through mobile devices and PCs , the Group provides advertisement placements to its advertisers on different Internet platforms and in different formats, which include banners, links, logos, buttons, full screen, pre-roll, mid-roll, in-feed Currently the Group has three main types of pricing models, consisting of the Fixed Price model, the Cost Per Impression (“CPM”) model and the Cost Per Click (“CPC”) model. (i) Fixed Price model Under the Fixed Price model, a contract is signed to establish a fixed price for the advertising services to be provided. Given that the advertisers benefit from displayed advertisements evenly over the period the advertisements are displayed, the Group recognizes revenue on a straight-line basis over the period of display, provided all revenue recognition criteria have been met. (ii) CPM model Under the CPM model, the unit price for each qualifying display is fixed and stated in the contract with the advertiser. A qualifying display is defined as the appearance of an advertisement, where the advertisement meets criteria specified in the contract. Given that the fees are priced consistently throughout the contract and the unit prices are fixed in accordance with the Group’s pricing practices for similar advertisers, the Group recognizes revenue based on the fixed unit prices and the number of qualifying displays upon their occurrence, provided all revenue recognition criteria have been met. (iii) CPC model Under the CPC model, there is no fixed price for advertising services stated in the contract with the advertiser and the unit price for each click is auction-based. The Group charges advertisers on a per-click Search and Search-related Advertising Revenues Search and search-related services consist primarily of search and search-related advertising services offered by Sogou. Pay-for-click Pay for click services enable advertisers’ promotional links to be displayed on Sogou search result pages and other Internet properties and third parties’ Internet properties where the links are relevant to the subject and content of searches and such properties. For pay-for-click per-click pay-for-click pay-for-click per-click Other Online Advertising Services Other online advertising services mainly consist of displaying advertisers’ promotional links on Sogou’s Internet properties. For time-based advertising services, Sogou’s performance obligation is satisfied over time when the advertising links are displayed over the contract periods, and therefore revenue is normally recognized on a straight-line basis over the contracted display period. For performance-based advertising services, for example, advertisers are charged based on the times that users download from the displayed links, Sogou’s performance obligation is satisfied at the point in time when the promised performance is completed, and the revenue is recognized upon the completion of the promised performance. Sogou’s online advertising services expand distribution of advertisers’ promotional links and advertisements by leveraging traffic on third parties’ Internet properties, including Web content, software, and mobile applications. Sogou is the principal in such arrangement because its promise to advertisers is to provide the advertising services itself rather than to arrange for the advertising services to be provided by third parties on their Internet properties. Payments made to operators of third-party Internet properties are included in the traffic acquisition costs. Online Game Revenues Changyou’s online game revenues are generated primarily from its self-operated and licensed-out in-game Changyou is the principal of its self-operated games. Changyou hosts the games on its own servers and is responsible for the sale and marketing of the games as well as customer service. Accordingly, revenues are recorded gross of revenue sharing-payments to third-party developers and/or mobile APP stores, but net of VAT and discounts to game card distributors where applicable. Changyou obtains revenues from the sale of in-game PC Games Proceeds from Changyou’s self-operated PC games are collected from players and third-party game card distributors through sales of Changyou’s game points on its online payment platform and prepaid game cards. Changyou’s self-operated PC games are either developed in house or licensed from third-party developers. For licensed PC games, Changyou remits a pre-agreed Mobile Games Self-operated Mobile Games For self-operated mobile games, Changyou sells game points to its game players via third-party mobile APP stores. The mobile APP stores in turn pay Changyou proceeds after deducting their share of pre-agreed Changyou’s self-operated mobile games are either developed in house or licensed from or jointly developed with third-party developers. For licensed and jointly-developed mobile games, Changyou remits a pre-agreed Licensed Out Mobile Games Changyou also authorizes third parties to operate its mobile games. Licensed out games include mobile games developed in house, such as Changyou’s mobile game Legacy TLBB Mobile, and mobile games jointly developed with third-party developers. Changyou receives monthly revenue-based royalty payments from the third-party licensee operators. Changyou receives additional up-front pre-agreed Other Revenues Sohu Other revenues attributable to Sohu consist primarily of revenues from paid subscription services, interactive broadcasting services, and sub-licensing Sogou Other revenues attributable to Sogou are IVAS revenues, which are mainly from the operation of Web games and mobile games developed by third parties, and revenues from other products and services, including smart hardware products and online lending and microcredit services. Other revenues are generally recognized when Sogou’s performance obligations under the applicable agreements have been satisfied, except for interest revenues from Sogou’s online lending and microcredit services, which are recognized using the effective interest method. Changyou Other revenues attributable to Changyou are primarily from IVAS. As of August 12, 2019, the Sohu Group ceased consolidating Changyou’s cinema advertising business in its consolidated financial statements and, accordingly, the financial results of the cinema advertising business are excluded from the Sohu Group’s results from continuing operations and are presented in separate line items as discontinued operations in the consolidated financial statements, and retrospective adjustments to the Sohu Group’s historical audited consolidated financial statements have been made in order to provide a consistent basis of comparison. Revenues generated from Changyou’s IVAS were derived primarily from software applications for PCs and mobile devices offered by RaidCall, which ceased operations in March 2019. Prior to March 2018, IVAS revenues also included revenues generated from the Dolphin Browser operated by MoboTap. Revenues from IVAS are recognized during the period the services are rendered or items are consumed under the gross method, as Changyou is the principal obligor for provision of the services. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent amounts invoiced and revenue recognized prior to invoicing, when the Group has satisfied its performance obligations and has the unconditional right to payment. The allowance for doubtful accounts and authorized credits is estimated based upon the Group’s assessment of various factors, including historical experience, the age of the accounts receivable balances, current economic conditions and other factors that may affect the Group’s customers’ ability to pay. Contract assets as of December 31, 2019 were not material. The allowance for doubtful accounts and authorized credits was $16.2 million and $15.1 million, respectively, as of December 31, 2019 and December 31, 2018. Receipts in advance and deferred revenue relate to unsatisfied performance obligations at the end of the period and primarily consist of fees received from game players in the online game business and from advertisers in the search and search-related advertising business. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. The amount of revenue recognized that was included in the receipts in advance and deferred revenue balance at the beginning of the period was $110.2 million for the year ended December 31, 2019. There was no significant change in the contract assets and contract liability balances during 2019. Revenue recognized in 2019 from performance obligations related to prior years was not material. Practical Expedients The Group has used the following practical expedients as allowed under ASC 606: (i) The transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied has not been disclosed, as substantially all of the Group’s contracts have a duration of one year or less. (ii) Payment terms and conditions vary by contract type, although terms generally include a requirement of prepayment or payment within one year or less. In instances where the timing of revenue recognition differs from the timing of invoicing, the Group has determined that its contracts generally do not include a significant financing component. (iii) The Group applied the portfolio approach in determining the commencement date of consumption and the estimated lives of virtual items for the recognition of games revenue, given that the effect of applying a portfolio approach to a group game players’ behaviors would not differ materially from considering each one of them individually. (iv) The Group generally expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within sales and marketing expenses. |
Cost of Revenues | Cost of Revenues Cost of Online Advertising Revenues Cost of online advertising revenues includes cost of revenues from brand advertising services as well as cost of revenues from search and search-related services. Cost of Brand Advertising Revenues Cost of brand advertising revenues mainly consists of content and license costs, salary and benefits expenses, and bandwidth service costs. For self-developed video content, production costs incurred in excess of the amount of revenue contracted for are expensed as incurred. Cost of Search and Search-related Advertising Revenues Cost of search and search-related advertising revenues mainly consists of traffic acquisition costs, bandwidth service costs, depreciation expenses, salary and benefits expenses, and share-based compensation expense. Traffic acquisition costs represent the most significant portion of cost of revenues. Traffic acquisition costs consist primarily of payments to third parties that direct search queries of the users to Internet properties of Sogou or distribute Sogou advertisersÂ’ promotional links through such third partiesÂ’ Internet properties. The traffic acquisitions costs for such arrangements consist primarily of fees that Sogou pays to the third parties based on an agreed-upon unit price and revenue-sharing payments that Sogou makes to such third parties based on an agreed-upon Cost of Online Game Revenues Cost of online game revenues mainly consists of revenue-sharing payments, salary and benefits expenses, bandwidth service costs, content and license costs, tax surcharges, depreciation and amortization expenses, and other direct costs. Cost of Other Revenues Cost of other revenues mainly consists of revenue-sharing payments related to the IVAS business, costs of smart hardware products, revenue-sharing payments related to interactive broadcasting services, and content and license costs related to paid subscription services. |
Product Development Expenses | Product Development Expenses Product development expenses mainly consist of salary and benefits expenses, content and license costs, technical service fees, facilities expenses, and depreciation and amortization expenses. These expenses are incurred for the enhancement and maintenance of the Sohu GroupÂ’s Internet platforms as well as for its products and services. The development costs of online games are expensed as incurred, including the development costs of online games prior to the establishment of technological feasibility and maintenance costs after the online games are available for marketing. |
Sales and Marketing Expenses | Sales and Marketing Expenses Sales and marketing expenses mainly consist of advertising and promotional expenses, salary and benefits expenses, travel and entertainment expenses, and facilities expenses. Advertising and promotional expenses generally represent the expenses of promotions to create or stimulate a positive image of the Sohu Group or a desire to subscribe for the GroupÂ’s products and services. Advertising and promotional expenses are expensed as incurred. |
General and Administrative Expenses | General and Administrative Expenses General and administrative expenses mainly consist of salary and benefits expenses, bad debts, professional fees, depreciation and amortization expenses, travel and entertainment expenses, and facilities expenses. |
Share-based Compensation Expense | Share-based Compensation Expense Sohu (excluding Sohu Video), Sogou, Changyou, and Sohu Video have incentive plans for the granting of share-based awards, including share options and restricted share units, to members of the boards of directors, management and other key employees. For share-based awards for which a grant date has occurred, share-based compensation expense is recognized as costs and expenses in the consolidated statements of comprehensive income based on the fair value of the related share-based awards on their grant dates. For share-based awards for which the service inception date precedes the grant date, share-based compensation expense is recognized as costs and expenses in the consolidated statements of comprehensive income beginning on the service inception date and is re-measured Sohu (excluding Sohu Video), Sogou, and Changyou Share-based Awards Sohu (excluding Sohu Video) Share-based Awards In determining the fair value of share options granted by Sohu (excluding Sohu Video) as share-based awards, the public market price of the underlying shares at each reporting date was used, and a binomial valuation model was applied. In determining the fair value of restricted share units granted, the public market price of the underlying shares on the grant dates was applied. Upon the dissolution of Sohu.com Inc. on May 31, 2018, Sohu.com Limited assumed all then existing obligations of Sohu.com Inc. with respect to equity incentive awards that had been granted under Sohu.com Inc.’s Amended and Restated 2010 Stock Incentive Plan (the “Sohu 2010 Stock Incentive Plan”) and remained outstanding, and such awards were converted into the right to receive upon exercise or settlement Sohu.com Limited’s ordinary shares under the Sohu.com Limited 2018 Share Incentive Plan (the “Sohu 2018 Share Incentive Plan”) rather than shares of the common stock of Sohu.com Inc., subject to the other terms of such outstanding awards. Options for the purchase of Sohu.com Limited’s ordinary shares, including options converted from those contractually granted under the Sohu 2010 Stock Incentive Plan, are subject to vesting in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and certain subjective performance targets. Under ASC 718-10-25, 718-10-55, re-measured Sogou Share-based Awards In determining the fair value of share options granted by Sogou as share-based awards, a binomial valuation model was applied. The determination of the fair value is affected by the fair value of the ordinary shares as well as assumptions regarding a number of complex and subjective variables, including risk-free interest rates, exercise multiples, expected forfeiture rates, expected share price volatility rates, and expected dividends. Before the completion of Sogou’s IPO, the fair values of the ordinary shares were assessed using the income approach/discounted cash flow method or based on the mid-point After the completion of Sogou’s IPO, the fair values of the ordinary shares were determined based on the trading price of Sogou’ ADSs in the public market. Before Sogou’s adoption of ASU 2018-07 non-employees ASC 505-50 non-employees 2018-07, non-employees Changyou Share-based Awards In determining the fair value of ordinary shares and restricted share units granted by Changyou as share-based awards in 2008, the income approach/discounted cash flow method with a discount for lack of marketability was applied, given that the shares underlying the awards were not publicly traded at the time of grant. Changyou’s 2008 Share Incentive Plan expired in August 2018 and is no longer available for granting new share-based awards. In determining the fair value of restricted share units granted after Changyou’s IPO, the public market price of the underlying shares on the grant dates was applied. Options for the purchase of Changyou Class A ordinary shares contractually granted under the Changyou 2014 Share Incentive Plan and the Changyou 2019 Share Incentive Plan are subject to vesting in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and certain subjective performance targets. Under ASC 718-10-25, 718-10-55, re-measured Compensation Expense Recognition For options and restricted share units granted with respect to Sohu (excluding Sohu Video) shares and Changyou shares, compensation expense is recognized on an accelerated basis upon the requisite service period and certain subjective performance targets being met. For share options granted with respect to Sogou shares, compensation expense is recognized over the estimated period during which the service period requirement and performance target will be met, which is usually within one year, or, after the performance target of Sogou’s completion of an IPO was met upon the completion of Sogou’s IPO on November 13, 2017, on an accelerated basis over the requisite service period, or, for options with only service period requirement, on an accelerated basis over the requisite service period. For Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search and search-related businesses, compensation expense is recognized by Sogou on an accelerated basis over the requisite service period, and the fair value of the share-based compensation is re-measured Sohu Video Share-based Awards On January 4, 2012, Sohu Video, the holding entity of Sohu’s video division, adopted a 2011 Share Incentive Plan (the “Video 2011 Share Incentive Plan”) which provides for the issuance of up to 25,000,000 ordinary shares of Sohu Video (representing approximately 10% of the outstanding Sohu Video shares on a fully-diluted basis) to management and key employees of the video division and to Sohu management. As of December 31, 2019, grants of options for the purchase of 16,368,200 ordinary shares of Sohu Video had been contractually made, of which options for the purchase of 4,972,800 ordinary shares were vested. For purposes of ASC 718-10-25, 718-10-55, re-measured, re-measure, |
Taxation | Taxation PRC Corporate Income Tax Income taxes are accounted for using an asset and liability approach which requires the recognition of income 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 the Group’s financial statements or tax returns. Deferred income taxes are determined based on the differences between the accounting basis and the tax basis of assets and liabilities and are measured using the currently enacted tax rates and laws. Deferred tax assets are reduced by a valuation allowance, if based on available evidence, it is considered that it is more likely than not that some portion of or all of the deferred tax assets will not be realized. In making such determination, the Group considers factors including future reversals of existing taxable temporary differences, future profitability, and tax planning strategies. If events were to occur in the future that would allow the Group to realize more of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the deferred tax assets that would increase income for the period when those events occurred. If events were to occur in the future that would require the Group to realize less of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the valuation allowance against deferred tax assets that would decrease income for the period when those events occurred. Significant management judgment is required in determining income tax expense and deferred tax assets and liabilities. The Group’s deferred tax assets are related to net operating losses and temporary differences between accounting basis and tax basis for its China-based Subsidiaries and VIEs, which are subject to corporate income tax in the PRC under the PRC Corporate Income Tax Law (the “CIT Law”). PRC Withholding Tax on Dividends The CIT Law imposes a 10% withholding income tax on dividends distributed by foreign invested enterprises in the PRC to their immediate holding companies outside Mainland China. A lower withholding tax rate may be applied if there is a tax treaty between Mainland China and the jurisdiction of the foreign holding company. A holding company in Hong Kong, for example, will be subject to a 5% withholding tax rate under an arrangement between the PRC and the Hong Kong Special Administrative Region on the “Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income,” if such holding company is considered a non-PRC PRC Value Added Tax On May 1, 2016, the transition from the imposition of PRC business tax to the imposition of VAT was expanded to all industries in China, and all of the Sohu Group’s revenues have been subject to VAT since that date. To record VAT payable, the Group adopted the net presentation method, which presents the difference between the output VAT (at rates of 6% or 17% for the year ended December 31, 2017 and for the period from January 1, 2018 to April 30, 2018, at rates of 6% or 16% for the period from May 1, 2018 to March 31, 2019, and at rates of 6% or 13% after April 1, 2019) and the available input VAT amount (at the rate applicable to the supplier). U.S. Corporate Income Tax Sohu.com Inc., which was formerly the top-tier one-time Certain activities conducted in the PRC resulted in U.S. corporate income taxes being imposed on Sohu.com Inc. when its subsidiaries that were controlled foreign corporations (“CFCs”) generated income that was subject to Subpart F of the U.S. Internal Revenue Code (“Subpart F”). Generally, passive income, such as rents, royalties, interest, dividends, and gains from disposal of the company’s investments, is among the types of income subject to taxation under Subpart F. Any income taxable under Subpart F was taxable in the U.S. at the applicable federal corporate income tax rate. Subpart F income also included certain income from intra-Group transactions between Sohu.com Inc.’s non-U.S. non-U.S. non-U.S. non-U.S. To the extent that portions of Sohu.com Inc.’s U.S. taxable income, such as Subpart F income or global intangible low-taxed Treatment of Toll Charge Related to the U.S. TCJA Beginning in the fourth quarter of 2017, the Sohu Group had recognized a provisional amount of income tax expense for the Toll Charge of $219 million, which represented management’s estimate of the amount of the Toll Charge that would have been payable by Sohu.com Inc. based on the deemed repatriation to the United States of its share of previously deferred earnings of certain of its non-U.S. For the fourth quarter of 2018, the Sohu Group’s management re-evaluated The tax benefit recognized and the unrecognized tax benefit in relation to the Toll Charge may be subject to further adjustment in subsequent periods based on facts and circumstances that arose after December 31, 2019, such as any IRS assessments upon audit and management’s further judgment and estimates. Uncertain Tax Positions The Sohu Group is subject to various taxes in different jurisdictions, but primarily the PRC. Management reviews regularly the adequacy of the provisions for taxes as they relate to the Group’s income and transactions. In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step two-step |
Net Income /(Loss) per Share | Net Income /(Loss) per Share Basic net income /(loss) per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted net income /(loss) per share is computed using the weighted average number of ordinary shares and, if dilutive, potential ordinary shares outstanding during the period. Potential ordinary shares comprise shares issuable upon the exercise or settlement of share-based awards using the treasury stock method. The dilutive effect of share-based awards with performance requirements is not considered before the performance targets are actually met. The computation of diluted net income /(loss) per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net income /(loss) per share. Additionally, for purposes of calculating the numerator of diluted net income /(loss) per share, the net income /(loss) attributable to the Sohu Group is calculated as discussed below. The adjustment will not be made if there is an anti-dilutive effect. SogouÂ’s net income /(loss) attributable to Sohu Before SogouÂ’s IPO Before SogouÂ’s IPO, SogouÂ’s net income /(loss) attributable to Sohu was determined using the percentage that the weighted average number of Sogou shares held by Sohu represented of the weighted average number of Sogou Pre-IPO Pre-IPO if-converted After SogouÂ’s IPO After SogouÂ’s IPO, SogouÂ’s net income /(loss) attributable to Sohu is determined using the percentage that the weighted average number of Sogou shares held by Sohu represents of the weighted average number of Sogou ordinary shares and shares issuable upon the exercise or settlement of share-based awards under the treasury stock method, and not by using the percentage held by Sohu of the total economic interest in Sogou, which is used for the calculation of basic net income per share. In the calculation of SohuÂ’s diluted net income /(loss) per share, assuming a dilutive effect, the percentage of SohuÂ’s shareholding in Sogou was calculated by treating convertible preferred shares issued by Sogou as having been converted at the beginning of the period and unvested Sogou share options with the performance targets achieved as well as vested but unexercised Sogou share options as having been exercised during the period. The dilutive effect of share-based awards with a performance requirement was not considered before the performance targets were actually met. Assuming an anti-dilutive effect, all of these Sogou shares and share options are excluded from the calculation of SohuÂ’s diluted income /(loss) per share. As a result, SogouÂ’s net income /(loss) attributable to Sohu on a diluted basis equals the number used for the calculation of SohuÂ’s basic net income /(loss) per share. ChangyouÂ’s net income /(loss) attributable to Sohu Prior to the completion of the Changyou Merger on April 17, 2020, ChangyouÂ’s net income /(loss) attributable to Sohu is determined using the percentage that the weighted average number of Changyou shares held by Sohu represents of the weighted average number of Changyou ordinary shares and shares issuable upon the exercise or settlement of share-based awards under the treasury stock method, and not by using the percentage held by Sohu of the total economic interest in Changyou, which is used for the calculation of basic net income per share. In the calculation of SohuÂ’s diluted net income /(loss) per share, assuming a dilutive effect, all of ChangyouÂ’s existing unvested restricted share units and share options, and vested restricted share units and share options that have not yet been settled, are treated as vested and settled by Changyou under the treasury stock method, causing the percentage of the weighted average number of shares held by Sohu in Changyou to decrease. As a result, ChangyouÂ’s net income /(loss) attributable to Sohu on a diluted basis decreased accordingly. Assuming an anti-dilutive effect, all of these Changyou restricted share units and share options are excluded from the calculation of SohuÂ’s diluted net income /(loss) per share. As a result, ChangyouÂ’s net income /(loss) attributable to Sohu on a diluted basis equals the number used for the calculation of SohuÂ’s basic net income /(loss) per share. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is: Level 1 - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - include other inputs that are directly or indirectly observable in the market place. Level 3 - unobservable inputs which are supported by little or no market activity. The Sohu GroupÂ’s financial instruments consist primarily of cash equivalents, restricted cash, short-term investments, accounts receivable, financing receivables, prepaid and other current assets, long-term investments, restricted time deposits, accounts payable, accrued liabilities, receipts in advance and deferred revenue, short-term bank loans, other short-term liabilities, long-term bank loans and long-term accounts payable. |
Cash Equivalents | Cash Equivalents The Sohu GroupÂ’s cash equivalents mainly consist of time deposits with original maturities of three months or less, and highly liquid investments that are readily convertible to known amounts of cash. |
Short-term Investments | Short-term Investments For investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Sohu Group elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. |
Accounts Receivable, Net | Accounts Receivable, Net The carrying value of accounts receivable is reduced by an allowance that reflects the Sohu GroupÂ’s best estimate of the amounts that will not be collected. The Group makes estimations of the collectability of accounts receivable. Many factors are considered in estimating the general allowance, including reviewing delinquent accounts receivable, performing an aging analysis and a customer credit analysis, and analyzing historical bad debt records and current economic trends. |
Financing Receivables, Net | Financing Receivables, Net Financing receivables consist primarily of small consumer loans that Sogou makes to individual borrowers. Sogou funds such loans either through its own capital or through a trust which was jointly established by Sogou and a third-party investor, and is administered by a third-party trust company. As the trust only invests in loans facilitated by Sogou, Sogou has power to direct the activities of the trust. Sogou also has the obligation to absorb losses and the right to receive benefits from the trust that could potentially be significant to the trust. As a result, Sogou is considered the primary beneficiary of the trust and the trust is considered a consolidated VIE (the “Consolidated Trust”) under ASC 810. The financing receivables are recorded at the principal amount and interest accrued, net of allowance for credit losses that reflects Sogou’s best estimate of the amounts that will not be collected. Interest on loans is accrued based on the contractual interest rates of the loans when earned. The loan periods granted by Sogou to the borrowers related to the small consumer loans are generally within one year. The allowance for credit losses is determined at a level believed to be reasonable to absorb probable losses inherent in the loan portfolio as of each balance sheet date. The allowance is provided based on an assessment performed on a portfolio basis and is estimated on a quarterly basis or more often as necessary based on the delinquency rate, the aging of the amount due and other relevant factors. |
Foreign Exchange Forward Contracts | Foreign Exchange Forward Contracts Foreign exchange forward contracts are initially recognized on the date a foreign exchange forward contract is entered into and are subsequently measured at fair value. |
Restricted Time Deposits | Restricted Time Deposits Restricted time deposits are valued based on the prevailing interest rates in the market using the discounted cash flow method. |
Equity Investments | Equity Investments Investments in entities are recorded as equity investments under long-term investments. For investments in common stock or in-substance The Group assesses investments for impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the companies, including current earnings trends and undiscounted cash flows, and other company-specific information, such as recent financing rounds. The fair value determination, particularly for investments in privately-held companies whose revenue model is still unclear, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments. If the assessment indicates that an impairment exists, the Group estimates the fair value of the investment and writes down the asset to its fair value, taking the corresponding charge to the consolidated statements of comprehensive income/(loss). |
Long-Lived Assets | Long-Lived Assets Long-lived assets include fixed assets and intangible assets. Fixed Assets Fixed assets mainly comprise office buildings, leasehold improvements, building improvements, vehicles, office furniture and computer equipment, and hardware. Fixed assets are recorded at cost less accumulated depreciation with no residual value. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Fixed Assets Estimated Useful Lives (years) Office buildings 36-47 Leasehold improvements Lesser of term of the lease or the estimated useful lives of the assets Vehicles 4-10 Office furniture 5 Computer equipment and hardware 2-5 Expenditure for maintenance and repairs is expensed as incurred. The gain or loss on the disposal of fixed assets is the difference between the net sale proceeds and the carrying value of the relevant assets and is recognized in operating expenses in the consolidated statements of comprehensive income. Intangible Assets Intangible assets mainly comprise purchased video content, operating rights for licensed games, domain names and trademarks, computer software, and developed technologies. Intangible assets are recorded at cost less accumulated amortization with no residual value. Amortization of intangible assets other than purchased video content is computed using the straight-line method over their estimated useful lives. Amortization of purchased video content is computed based on the trend in viewership accumulation over the shorter of the applicable license period or two years. The estimated useful lives of the Group’s intangible assets are listed below: Intangible Assets Estimated Useful Lives (years) Purchased video content 1 month to 2 years Computer software 1-5 Developed technologies 3-10 Domain names and trademarks 4-30 Operating rights for licensed games over the contract terms Sohu Video enters into nonmonetary transactions to exchange online broadcasting rights for purchased video content with other online video broadcasting companies. Under ASC 845 Impairment of Long-lived Assets other than Purchased Video Content In accordance with ASC 360-10-35, Impairment of Purchased Video Content Purchased video content is stated at the lower of cost less accumulated amortization, or net realizable value (“NRV”). In accordance with ASC 920-350-35 |
Lease | Lease The Sohu Group adopted ASU No. 2016-02, The Sohu Group elected the package of practical expedients permitted under the transition guidance, which allowed the Sohu Group to carry forward the historical lease classification, the assessment on whether an existing or expired contract contains a lease, and the treatment of initial direct costs. The Sohu Group also elected to keep leases with an initial term of 12 months or less off the balance sheet. Under the new lease guidance, the Sohu Group determines if an arrangement is or contains a lease at inception. Right-of-use right-of-use |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Sohu GroupÂ’s acquisitions of interests in its subsidiaries and consolidated VIEs. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports in its financial statements provisional amounts for the items for which the accounting is incomplete. If a measurement period adjustment is identified, the Group recognizes the adjustment as part of the acquisition accounting. The Sohu Group increases or decreases the provisional amounts of identifiable assets or liabilities by means of increases or decreases in goodwill for measurement period adjustments. In accordance with ASC 350 ASC 350-20-35 two-step Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The Group estimates fair value using the income approach and the market approach. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates, control premium, comparable companiesÂ’ multipliers, and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. |
Comprehensive Income | Comprehensive Income Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Accumulated other comprehensive income, as presented on the Sohu GroupÂ’s consolidated balance sheets, includes a cumulative foreign currency translation adjustment, and change in unrealized gains /(losses) on equity securities classified as available-for-sale 2016-01. |
Functional Currency and Foreign Currency Translation | Functional Currency and Foreign Currency Translation An entityÂ’s functional currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily generates and expends cash. ManagementÂ’s judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and intra-Group transactions and arrangements. The functional currency of Sohu.com Limited, and its predecessor Sohu.com Inc., is the U.S. dollar. The functional currency of the Sohu GroupÂ’s subsidiaries in the U.S., the Cayman Islands, the British Virgin Islands and Hong Kong is the U.S. dollar. The functional currencies of the Sohu GroupÂ’s subsidiaries and VIEs in other countries are the national currencies of those counties, rather than the U.S. dollar. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are re-measured re-measurement Financial statements of entities with a functional currency other than the U.S. dollar are translated into U.S. dollars, which is the reporting currency. Assets and liabilities are translated at the current exchange rate in effect at the balance sheet date, and revenues and expenses are translated at the average of the exchange rates in effect during the reporting period. ShareholdersÂ’ equity accounts are translated using the historical exchange rates at the date the entry to shareholdersÂ’ equity was recorded, except for the change in retained earnings during the year, which is translated using the historical exchange rates used to translate each periodÂ’s income statement. Differences resulting from translating a foreign currency to the reporting currency are recorded in accumulated other comprehensive income in the consolidated balance sheets. |
Impact of Recently Issued Accounting Pronouncements | Impact of Recently Issued Accounting Pronouncements Leases (Topic 842). No. 2016-02, Leases (Topic 842) No. 2016-02 right-of-use 2016-02 right-of-use 2016-02Â’s Compensation-Stock Compensation (Topic 718) No. 2018-07, Compensation-Stock Compensation (Topic 718), 2018-07 Other accounting standards adopted beginning January 1, 2019 do not have a significant impact on the Sohu GroupÂ’s consolidated financial statements. |
Impact of Recently Issued Accounting Pronouncements not Yet Adopted | Impact of Recently Issued Accounting Pronouncements not Yet Adopted Financial Instruments-Credit Losses. 2016-13, Financial Instruments-Credit Losses (Topic 326) 2016-13 2016-13’s Simplifying the Test for Goodwill Impairment. No. 2017-04, “Simplifying the Test for Goodwill Impairment.” Simplifying the accounting for income taxes. No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes No. 2019-12 2019-12 Cloud computing set-up, Fair value measurement disclosure requirements. No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement 2018-13”) |
The Company and Nature of Ope_2
The Company and Nature of Operations (Information of Subsidiaries and VIEs) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
THE COMPANY AND NATURE OF OPERATIONS [Abstract] | |
Information of all subsidiaries and VIEs | Name of Entity Date of Place of Effective Subsidiaries: For Sohu’s Business: Sohu.com (Hong Kong) Limited (“Sohu HK”) Incorporated on April 19, 2000 Hong Kong 100% Beijing Sohu New Era Information Technology Co., Ltd. (“Sohu Era”) Incorporated on July 25, 2003 People’s Republic of China 100% Sohu.com (Search) Limited (“Sohu Search”) Incorporated on October 28, 2005 Cayman Islands 100% Beijing Sohu New Media Information Technology Co., Ltd. (“Sohu Media”) Incorporated on June 19, 2006 People’s Republic of China 100% Sohu.com (Game) Limited (“Sohu Game”) Incorporated on February 11, 2008 Cayman Islands 100% Beijing Sohu New Momentum Information Technology Co., Ltd. (“Sohu New Momentum”) Incorporated on May 31, 2010 People’s Republic of China 100% Fox Video Limited (“Sohu Video”) Incorporated on July 26, 2011 Cayman Islands 100% Fox Information Technology (Tianjin) Limited (“Video Tianjin”) Incorporated on November 17, 2011 People’s Republic of China 100% Sohu Focus Limited (“Sohu Focus”) Incorporated on July 11, 2013 Cayman Islands 100% For Sogou’s Business: Sogou Inc. (“Sogou”) Incorporated on December 23, 2005 Cayman Islands 34% Sogou (BVI) Limited (“Sogou BVI”) Incorporated on December 23, 2005 British Virgin Islands 34% Beijing Sogou Technology Development Co., Ltd. (“Sogou Technology”) Incorporated on February 8, 2006 People’s Republic of China 34% Sogou Hong Kong Limited (“Sogou HK”) Incorporated on December 12, 2007 Hong Kong 34% Vast Creation Advertising Media Services Limited (“Vast Creation”) Acquired on November 30, 2011 Hong Kong 34% Beijing Sogou Network Technology Co., Ltd (“Sogou Network”) Incorporated on March 29, 2012 People’s Republic of China 34% Sogou (Shantou) Internet Microcredit Co., Ltd. (“Sogou Microcredit”) Incorporated on November 22, 2017 People’s Republic of China 34% Sogou (Hangzhou) Intelligent Technology Co., Ltd. (“Sogou Hangzhou”) Incorporated on April 28, 2018 People’s Republic of China 34% Shantou Ying Zhong Bai Fu Financing Guarantee Co., Ltd. (“Sogou Financing Guarantee”) Incorporated on July 24, 2019 People’s Republic of China 34% For Changyou’s Business: Changyou.com Limited (“Changyou”) Incorporated on August 6, 2007 Cayman Islands 67% Changyou.com (HK) Limited (“Changyou HK”) Incorporated on August 13, 2007 Hong Kong 67% Beijing AmazGame Age Internet Technology Co., Ltd. (“AmazGame”) Incorporated on September 26, 2007 People’s Republic of China 67% Beijing Changyou Gamespace Software Technology Co., Ltd. (“Gamespace”) Incorporated on October 29, 2009 People’s Republic of China 67% Beijing Changyou Chuangxiang Software Technology Co., Ltd. (“Changyou Chuangxiang”) Incorporated on November 8, 2016 People’s Republic of China 67% VIEs: For Sohu’s Business: Beijing Century High-Tech Investment Co., Ltd. (“High Century”) Incorporated on December 28, 2001 People’s Republic of China 100% Beijing Heng Da Yi Tong Information Technology Co., Ltd. (“Heng Da Yi Tong”) Incorporated on February 7, 2002 People’s Republic of China 100% Beijing Sohu Internet Information Service Co., Ltd. (“Sohu Internet”) Incorporated on July 31, 2003 People’s Republic of China 100% Beijing Sohu Donglin Advertising Co., Ltd. (“Donglin”) Incorporated on May 17, 2010 People’s Republic of China 100% Tianjin Jinhu Culture Development Co., Ltd (“Tianjin Jinhu”) Incorporated on November 24, 2011 People’s Republic of China 100% Beijing Focus Interactive Information Service Co., Ltd. (“Focus Interactive”) Incorporated on July 15, 2014 People’s Republic of China 100% For Sogou’s Business: Beijing Sogou Information Service Co., Ltd.(“Sogou Information”) Incorporated on December 28, 2005 People’s Republic of China 34% Chengdu Easypay Technology Co., Ltd. (“Chengdu Easypay”) Incorporated on January 19, 2015 People’s Republic of China 34% For Changyou’s Business: Beijing Gamease Age Digital Technology Co., Ltd. (“Gamease”) Incorporated on August 23, 2007 People’s Republic of China 67% Shanghai ICE Information Technology Co., Ltd. (“Shanghai ICE”) Acquired on May 28, 2010 People’s Republic of China 67% Beijing Guanyou Gamespace Digital Technology Co., Ltd. (“Guanyou Gamespace”) Incorporated on August 5, 2010 People’s Republic of China 67% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Estimated useful lives of fixed assets | Fixed Assets Estimated Useful Lives (years) Office buildings 36-47 Leasehold improvements Lesser of term of the lease or the estimated useful lives of the assets Vehicles 4-10 Office furniture 5 Computer equipment and hardware 2-5 |
Estimated useful lives of intangible assets | Intangible Assets Estimated Useful Lives (years) Purchased video content 1 month to 2 years Computer software 1-5 Developed technologies 3-10 Domain names and trademarks 4-30 Operating rights for licensed games over the contract terms |
ASC 606 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Revenues disaggregated by products and services | Year Ended December 31, 2017 (in thousands) Sohu Sogou Changyou Total Brand advertising: Sohu Media Portal $ 152,015 0 0 152,015 Sohu Video 79,756 0 0 79,756 Focus 57,245 0 0 57,245 17173.com Website 0 0 25,096 25,096 Search and search related advertising 0 801,199 0 801,199 Online games: PC games 0 0 239,149 239,149 Mobile games 0 0 208,355 208,355 Other games 0 0 2,029 2,029 Others 83,758 106,807 14,180 204,745 Total $ 372,774 908,006 488,809 1,769,589 Year Ended December 31, 2018 (in thousands) Sohu Sogou Changyou Total Brand advertising: Sohu Media Portal $ 127,348 0 0 127,348 Sohu Video 53,756 0 0 53,756 Focus 31,144 0 0 31,144 17173.com Website 0 0 19,697 19,697 Search and search related advertising 0 1,022,456 0 1,022,456 Online games: PC games 0 0 236,743 236,743 Mobile games 0 0 151,737 151,737 Other games 0 0 1,308 1,308 Others 61,975 100,589 6,074 168,638 Total $ 274,223 1,123,045 415,559 1,812,827 Year Ended December 31, 2019 (in thousands) Sohu Sogou Changyou Total Brand advertising: Sohu Media Portal $ 94,497 0 0 94,497 Sohu Video 34,529 0 0 34,529 Focus 32,120 0 0 32,120 17173.com Website 0 0 13,715 13,715 Search and search related advertising 0 1,072,860 0 1,072,860 Online games: PC games 0 0 267,752 267,752 Mobile games 0 0 172,718 172,718 Other games 0 0 432 432 Others 57,080 98,981 763 156,824 Total $ 218,226 1,171,841 455,380 1,845,447 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Balance Sheet Information of Discontinued Operations | As of December 31, 2018 ASSETS Current assets: Cash and cash equivalents 229 Restricted cash 2,435 Accounts receivable, net 16,761 Prepaid and other current assets 14,899 Total current assets associated with discontinued operations 34,324 Non-current Fixed assets, net 351 Intangible assets, net 47 Total non-current 398 Total assets associated with discontinued operations 34,722 LIABILITIES Current liabilities: Payable to Changyou 72,319 Accounts payable 9,210 Receipts in advance and deferred revenue 4,378 Accrued salary and benefits 4,888 Accrued liabilities to suppliers 9,632 Tax payables 496 Other short-term liabilities 182 Total current liabilities associated with discontinued operations 101,105 Total liabilities associated with discontinued operations 101,105 |
Comprehensive Income Information of Discontinued Operations | Year Ended December 31, 2017 2018 2019 (1) Revenues $ 91,419 $ 70,202 $ 37,323 Cost of revenues 84,944 89,233 43,857 Gross profit 6,475 (19,031 ) (6,534 ) Operating expenses: Sales and marketing 22,622 20,288 8,807 General and administrative 3,833 4,965 18,583 Total operating expenses 26,455 25,253 27,390 Operating profit (19,980 ) (44,284 ) (33,924 ) Interest income 0 6 7 Other income /(expense), net (39 ) (557 ) 61 Income before income tax expense (20,019 ) (44,835 ) (33,856 ) Income tax expense 512 0 142 Net loss from discontinued operations, net of tax (20,531 ) (44,835 ) (33,998 ) Note (1): Includes the financial results of the discontinued operations from January 1, 2019 to August 12, 2019. |
Cash Flow Information of Discontinued Operations | Year Ended December 31, 2017 2018 2019 (1) Net cash provided by discontinued operating activities $ 1,062 $ 3,422 $ 9,341 Net cash provided used in discontinued investing activities (954 ) (718 ) (10,808 ) Net cash provided by/(used in) discontinued financing activities 0 0 0 Note (1): Includes the financial results of the discontinued operations from January 1, 2019 to August 12, 2019. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENT INFORMATION [Abstract] | |
Segment operating information by segment | Year Ended December 31, 2017 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 374,696 $ 908,357 $ 488,842 $ (2,306 ) $ 1,769,589 Segment cost of revenues (414,526 ) (456,861 ) (78,769 ) 86 (950,070 ) Segment gross profit (39,830 ) 451,496 410,073 (2,220 ) 819,519 SBC (2) in cost of revenues 415 (540 ) (73 ) 0 (198 ) Gross profit (39,415 ) 450,956 410,000 (2,220 ) 819,321 Operating expenses: Product development (3) (113,590 ) (156,359 ) (124,869 ) 6,192 (388,626 ) Sales and marketing (1) (3) (199,304 ) (152,121 ) (37,083 ) 4,000 (384,508 ) General and administrative (3) (44,563 ) (25,407 ) (33,385 ) 130 (103,225 ) Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions 0 0 (86,882 ) 0 (86,882 ) SBC (2) in operating expenses (765 ) (27,193 ) (17,320 ) 0 (45,278 ) Total operating expenses (358,222 ) (361,080 ) (299,539 ) 10,322 (1,008,519 ) Operating profit /(loss) (397,637 ) 89,876 110,461 8,102 (189,198 ) Other income /(expense) (3) 4,694 692 9,413 (8,102 ) 6,697 Interest income (4) 7,344 9,126 32,319 (24,651 ) 24,138 Interest expense (4) (24,367 ) 0 (4,372 ) 24,651 (4,088 ) Exchange difference (2,107 ) (7,082 ) (5,196 ) 0 (14,385 ) Income /(loss) before income tax expense (412,073 ) 92,612 142,625 0 (176,836 ) Income tax expense (217,959 ) (14,422 ) (40,255 ) 0 (272,636 ) Net income /(loss) from continuing operations (630,032 ) 78,190 102,370 0 (449,472 ) Net loss from discontinued operations 0 0 (20,531 ) 0 (20,531 ) Net income /(loss) $ (630,032 ) $ 78,190 $ 81,839 $ 0 $ (470,003 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou, and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): The elimination represents interest income/ (expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. Year Ended December 31, 2018 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 274,670 $ 1,124,158 $ 415,561 $ (1,562 ) $ 1,812,827 Segment cost of revenues (218,184 ) (692,801 ) (71,626 ) 56 (982,555 ) Segment gross profit 56,486 431,357 343,935 (1,506 ) 830,272 SBC (2) in cost of revenues 707 (669 ) 31 0 69 Gross profit 57,193 430,688 343,966 (1,506 ) 830,341 Operating expenses: Product development (3) (123,743 ) (191,426 ) (126,593 ) 6,733 (435,029 ) Sales and marketing (1) (3) (203,307 ) (144,867 ) (34,512 ) 2,801 (379,885 ) General and administrative (3) (48,664 ) (36,177 ) (28,657 ) 362 (113,136 ) Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions 0 0 (16,369 ) 0 (16,369 ) SBC (2) in operating expenses 4,940 (13,535 ) 6,430 0 (2,165 ) Total operating expenses (370,774 ) (386,005 ) (199,701 ) 9,896 (946,584 ) Operating profit /(loss) (313,581 ) 44,683 144,265 8,390 (116,243 ) Other income /(expense) (3) 345,416 41,489 23,436 (345,617 ) 64,724 Interest income (4) 14,001 8,037 34,403 (32,367 ) 24,074 Interest expense (4) (39,709 ) 0 (10,197 ) 32,368 (17,538 ) Exchange difference 1,981 5,725 1,320 0 9,026 Income /(loss) before income tax expense 8,108 99,934 193,227 (337,226 ) (35,957 ) Income tax benefit /(expense) 79,053 (1,153 ) (64,467 ) 0 13,433 Net income /(loss) from continuing operations 87,161 98,781 128,760 (337,226 ) (22,524 ) Net loss from discontinued operations 0 0 (44,835 ) 0 (44,835 ) Net income /(loss) $ 87,161 $ 98,781 $ 83,925 $ (337,226 ) $ (67,359 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou, and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of the distribution by Changyou of a dividend to Sohu in 2018 and leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): The elimination represents interest income /(expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. Year Ended December 31, 2019 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 218,442 $ 1,172,252 $ 455,380 $ (627 ) $ 1,845,447 Segment cost of revenues (148,258 ) (737,981 ) (95,268 ) 28 (981,479 ) Segment gross profit 70,184 434,271 360,112 (599 ) 863,968 SBC (2) in cost of revenues (23 ) (473 ) (120 ) 0 (616 ) Gross profit 70,161 433,798 359,992 (599 ) 863,352 Operating expenses: Product development (3) (113,762 ) (179,705 ) (119,726 ) 6,142 (407,051 ) Sales and marketing (1) (3) (155,226 ) (134,565 ) (49,768 ) 2,117 (337,442 ) General and administrative (3) (32,218 ) (39,665 ) (22,074 ) 358 (93,599 ) Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions (7,245 ) 0 0 0 (7,245 ) SBC (2) in operating expenses (1,022 ) (15,428 ) (1,185 ) 0 (17,635 ) Total operating expenses (309,473 ) (369,363 ) (192,753 ) 8,617 (862,972 ) Operating profit /(loss) (239,312 ) 64,435 167,239 8,018 380 Other income /(expense) (3) 331,599 21,126 14,477 (345,254 ) 21,948 Interest income (4) 24,361 4,443 39,441 (57,699 ) 10,546 Interest expense (4) (46,730 ) 0 (25,339 ) 57,699 (14,370 ) Exchange difference (445 ) 1,849 1,875 0 3,279 Income /(loss) before income tax expense 69,473 91,853 197,693 (337,236 ) 21,783 Income tax benefit /(expense) (8,351 ) (2,748 ) (20,077 ) 0 (31,176 ) Net income /(loss) from continuing operations 61,122 89,105 177,616 (337,236 ) (9,393 ) Net loss from discontinued operations 0 0 (33,998 ) 0 (33,998 ) Net income /(loss) $ 61,122 $ 89,105 $ 143,618 $ (337,236 ) $ (43,391 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou, and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of the distribution by Changyou of a dividend to Sohu in 2019 and leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): The elimination represents interest income /(expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. |
Segment assets information by segment | As of December 31, 2018 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 180,005 $ 185,175 $ 454,305 $ 0 $ 819,485 Account and financing receivables, net 78,383 145,401 40,627 0 264,411 Fixed assets, net 186,756 147,495 170,396 0 504,647 Total assets (1) $ 1,319,490 $ 1,462,844 $ 2,037,803 $ (1,449,290 ) $ 3,370,847 Note (1): The elimination for segment assets mainly consists of elimination of intra-Group loans between Sohu and Changyou, and elimination of long-term investments in subsidiaries and consolidated VIEs. As of December 31, 2019 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 68,229 $ 142,464 $ 94,433 $ 0 $ 305,126 Account and financing receivables, net 70,252 134,635 55,829 0 260,716 Fixed assets, net 177,978 110,006 159,713 (9 ) 447,688 Total assets (1) $ 1,721,801 $ 1,522,402 $ 1,871,685 $ (2,426,098 ) $ 2,689,790 Note (1): The elimination for segment assets mainly consists of elimination of intra-Group loans between Sohu and Changyou, and elimination of long-term investments in subsidiaries and consolidated VIEs. |
Share-based Compensation Expe_2
Share-based Compensation Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SHARE-BASED COMPENSATION EXPENSE [Abstract] | |
Share-based compensation expense recognized in costs and expenses | Year Ended December 31, Share-based compensation expense 2017 2018 2019 Cost of revenues $ 198 $ (69 ) $ 615 Product development expenses 23,547 6,131 12,063 Sales and marketing expenses 5,915 405 3,398 General and administrative expenses 15,817 (4,372 ) 2,175 $45,477 $2,095 $18,251 |
Share-based compensation expense recognized for share awards of Sohu (excluding Sohu Video), Sogou, Changyou and Sohu Video | Year Ended December 31, Share-based compensation expense 2017 2018 2019 For Sohu (excluding Sohu Video) share-based awards $ 652 $ (5,100 ) $ 1,940 For Sogou share-based awards (1) 27,729 14,204 15,901 For Changyou share-based awards 17,394 (6,461 ) 1,305 For Sohu Video share-based awards (298 ) (548 ) (895 ) $45,477 $2,095 $18,251 Note (1): For the years ended December 31, 2017 and 2018, compensation expense for Sogou share-based awards also included compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search and search-related businesses. All of such restricted share units vested before January 1, 2019. |
Other Income _(Expense),net (Ta
Other Income /(Expense),net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER INCOME /(EXPENSE), NET [Abstract] | |
Other income /(expense) | Year Ended December 31, 2017 2018 2019 Gain from the changes in fair value of financial instruments (1) 6,665 40,054 41,014 Government grant 2,160 5,428 6,386 Investment income /(expense) (2) (2,051 ) 14,565 3,004 Donations (218 ) (70 ) (754 ) Write-off of unpaid long-term accounts payable 2,031 0 0 Impairment loss on available-for-sale (5,754 ) 0 0 Impairment loss on equity investments (4) 0 (2,605 ) (34,119 ) Others 3,864 7,352 6,417 $6,697 $ 64,724 $ 21,948 Note (1): The increase for 2018 compared to 2017 mainly consisted of $33.4 million in income earned from investments in financial instruments. Note (2): The increase for 2018 compared to 2017 mainly consisted of $17.8 million in investment income recognized in the third quarter of 2018 by Sogou due to the observable change in the price of Zhihu Technology Limited (“Zhihu”) after the adoption of ASU 2016-01, Note (3): Before the adoption of ASU 2016-01, available-for-sale Note (4): In the fourth quarter of 2019, the Sohu Group recognized impairment losses of $34.1 million for equity investments. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
BALANCE SHEET COMPONENTS [Abstract] | |
Balance sheet components account and financing receivables, net | As of December 31, 2018 2019 Account and financing receivables, net Accounts receivable $ 233,258 210,069 Financing receivables 46,238 66,858 Allowance for doubtful accounts and credit losses (15,085 ) (16,211 ) $ 264,411 260,716 |
Balance sheet components movement of allowance for doubtful accounts and credit losses | Balance at the Additional provision Write-offs Exchange Balance at the 2017 4,274 8,891 (8,634 ) 340 4,871 2018 4,871 14,568 (3,848 ) (506 ) 15,085 2019 15,085 20,344 (19,978 ) 760 16,211 |
Balance sheet components other assests and liabilities | As of December 31, 2018 2019 Prepaid and other current assets Matching loan due from a related party (See Note 9) $ 31,607 $ 33,329 Prepaid taxes 29,452 30,068 Receivables from third-party payment service providers 14,012 14,221 Prepaid content and license 30,033 13,330 Prepaid cost of revenue 3,568 8,343 Inventory 12,657 4,186 Receivables from third party payment platforms 8,844 3,435 Prepaid rental deposit 4,978 3,113 Interest receivable from bank deposits with original maturities of three months or less 3,645 2,264 Employee advances 2,259 1,693 Prepaid office rent and facilities expenses 2,886 735 Due from discontinued associated company (1) 72,337 0 Others 9,466 9,615 $ 225,744 $124,332 Note (1): As of December 31, 2018, Changyou had a receivable of $72,319 due from a discontinued associated company. In 2019, Changyou estimated an allowance of $72,319 for the receivable, which potentially might not be collected upon the liquidation of the discontinued associated company. Changyou will continually assess the allowance based on developments in bankruptcy proceedings with respect to the discontinued company in a Chinese court. Prepaid non-current Prepaid PRC income tax for the sale of assets associated with 17173.com by Sohu to Changyou $ 2,870 $ 1,882 Others 237 0 $ 3,107 $ 1,882 Other short-term liabilities Contract deposits from advertisers $ 40,073 $ 34,459 Matching loans due to a related party (See Note 9) 32,719 33,536 Contingent liability related to Shanghai Jingmao liquidation (1) 0 23,900 Deposits related to Focus 21,648 19,101 Lease liabilities 0 8,616 Payable to a third-party investor in the Consolidated Trust 0 8,601 Depository payable reimbursement 4,985 3,697 Early exercise of Sogou share options for trust arrangements 2,702 2,702 Accrued liabilities to suppliers 3,288 2,209 Consideration payable for equity investment 5,960 740 Others 12,546 11,750 $ 123,921 $ 149,311 Note (1): The contingent liability represents the aggregate of estimated potential payments to third parties in connection with the liquidation of Shanghai Jingmao. The stated amount of the contingent liability reflects ChangyouÂ’s best estimate as of December 31, 2019 pursuant to ASC 450-20. Receipts in advance and deferred revenue Receipts in advance relating to: brand advertising business $ 10,069 $ 7,097 search and search-related business 65,465 67,756 online game business 14,635 5,524 other business 3,602 6,490 Total receipts in advance 93,771 86,867 Deferred revenue 26,633 31,355 $120,404 $118,222 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Financial instruments, measured at fair value | Fair value measurements at reporting date using Items As of Quoted Prices Significant Significant Cash equivalents $ 595,703 $ 0 $ 595,703 $ 0 Short-term investments 1,041,395 0 1,041,395 0 Restricted time deposits 244,179 0 244,179 0 Equity investments with readily determinable fair values 6,790 6,790 0 0 Fair value measurements at reporting date using Items As of Quoted Prices Significant Significant Cash equivalents $ 219,977 $ 0 $ 219,977 $ 0 Short-term investments 1,316,833 0 1,316,833 0 Restricted time deposits 240 0 240 0 Equity investments with readily determinable fair values 9,320 9,320 0 0 |
Assets measured at fair value on nonrecurring basis | Fair value measurements at reporting date using Items As of Quoted Prices in Significant Other Significant Purchased video content recorded in prepaid and other assets $ 5,504 $ 0 $ 0 $ 5,504 Intangible assets, net 24,071 0 0 24,071 Goodwill 53,263 0 0 53,263 Fair value measurements at reporting date using Items As of Quoted Prices in Significant Other Significant Purchased video content recorded in prepaid and other assets $ 3,115 $ 0 $ 0 $ 3,115 Intangible assets, net 11,437 0 0 11,437 Goodwill 52,923 0 0 52,923 |
Lease (Tables)
Lease (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Component of operating lease expense | Year Ended December 31, 2019 Operating lease expense $ 12,623 Short-term lease expense 263 Total operating lease expense $ 12,886 |
Cash paid for amounts included in the measurement of lease liabilities | Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 12,164 |
Right-of-use assets obtained in exchange for lease liabilities | Year Ended December 31, 2019 Right-of-use Operating leases $ 11,332 |
Supplemental balance sheet information related to operating leases | Year Ended December 31, 2019 Assets: Operating lease right-of-use $ 16,656 Liabilities: Current lease liabilities 8,616 Non-current 5,770 Total operating lease liabilities $ 14,386 |
Maturities of lease liabilities under operating leases | 2020 $ 8,969 2021 5,380 2022 972 2023 0 2024 0 Thereafter 0 Total future lease payments 15,321 Less: imputed interest 935 Total present value of lease liabilities $ 14,386 |
Future minimum rental payments under operating leases | 2019 $ 12,367 2020 10,311 2021 6,032 2022 809 2023 270 Thereafter 0 Total minimum lease payments (1) $ 29,789 Note (1): Amounts are based on ASC 840, which was superseded upon the GroupÂ’s adoption of ASC 842 on January 1, 2019. Rental expenses under operating leases were $17.2 million and $14.7 million for the years ended December 31, 2017, and 2018, respectively. |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FIXED ASSETS [Abstract] | |
Fixed assets | As of December 31, 2018 2019 Office buildings $ 372,723 $ 366,686 Computer equipment and hardware 418,198 414,532 Leasehold and building improvements 48,364 47,262 Office furniture 8,768 9,091 Vehicles 3,812 3,595 Fixed assets, gross 851,865 841,166 Accumulated depreciation (347,218 ) (393,478 ) Fixed assets, net $ 504,647 $ 447,688 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
GOODWILL [Abstract] | |
Change in the carrying value of goodwill by segment | Sohu Sogou Changyou Total Balance as of December 31, 2017 Goodwill 73,941 5,908 181,421 261,270 Accumulated impairment losses (35,788 ) 0 (153,917 ) (189,705 ) $ 38,153 $ 5,908 $ 27,504 $ 71,565 Transactions in 2018 Foreign currency translation adjustment (772 ) (283 ) (878 ) (1,933 ) Impairment losses 0 0 (16,369 ) (16,369 ) Balance as of December 31, 2018 $ 37,381 $ 5,625 $ 10,257 $ 53,263 Balance as of December 31, 2018 Goodwill 69,627 5,625 180,543 255,795 Accumulated impairment losses (32,246 ) 0 (170,286 ) (202,532 ) $ 37,381 5,625 $ 10,257 $ 53,263 Transactions in 2019 Foreign currency translation adjustment (249 ) (91 ) 0 (340 ) Impairment losses 0 0 0 0 Balance as of December 31, 2019 $ 37,132 $ 5,534 $ 10,257 $ 52,923 Balance as of December 31, 2019 Goodwill 69,378 5,534 180,543 255,455 Accumulated impairment losses (32,246 ) 0 (170,286 ) (202,532 ) $ 37,132 5,534 $ 10,257 $ 52,923 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INTANGIBLE ASSETS, NET [Abstract] | |
Finite-lived intangible assets by major class | As of December 31, 2018 Items Gross Accumulated Impairment Net Purchased video content $ 177,307 $ (156,198 ) $ (18,556 ) $ 2,553 Operating rights for licensed games 46,237 (22,239 ) (11,776 ) 12,222 Domain names and trademarks 28,054 (11,124 ) (9,341 ) 7,589 Computer software 15,550 (13,948 ) 0 1,602 Developed technologies 8,902 (1,463 ) (7,439 ) 0 Others 6,141 (4,171 ) (1,865 ) 105 Total $ 282,191 $ (209,143 ) $ (48,977 ) $ 24,071 As of December 31, 2019 Items Gross Accumulated Impairment Net Purchased video content $ 217,610 $ (179,167 ) $ (35,940 ) $ 2,503 Operating rights for licensed games 47,226 (27,992 ) (12,365 ) 6,869 Domain names and trademarks 27,644 (11,210 ) (16,176 ) 258 Computer software 16,231 (14,515 ) 0 1,716 Developed technologies 8,773 (1,441 ) (7,332 ) 0 Others 6,044 (4,118 ) (1,835 ) 91 Total $ 323,528 $ (238,443 ) $ (73,648 ) $ 11,437 |
Expected amortization expense | For the year ending December 31, (in thousands) 2020 7,042 2021 3,414 2022 515 2023 300 2024 99 Thereafter 67 Total expected amortization expense $ 11,437 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
TAXATION [Abstract] | |
Components of income before income taxes | Year ended December 31, 2017 2018 2019 Income /(loss) before income tax expense Income /(loss) from China operations $ (55,874 ) $ (2,865 ) $ (4,390 ) Income /(loss) from non-China (120,962 ) (33,092 ) 26,173 Total income /(loss) before income tax expense $ (176,836 ) $ (35,957 ) $ 21,783 Income tax expense applicable to China operations Current tax $ 56,938 $ 15,040 $ 14,510 Deferred tax 343 49,598 8,455 Subtotal income tax expense applicable to China operations 57,281 64,638 22,965 Non-China 214,737 (78,540 ) 7,887 Non-China 618 469 324 Total income tax expense $ 272,636 $ (13,433 ) $ 31,176 |
Combined effects of the income tax exemption and reduction available | Year Ended December 31, 2017 2018 2019 Tax holiday effect $ 17,736 $ 28,385 $ 10,110 Basic net income per share effect 0.46 0.73 0.26 |
Reconciliation between the U.S. federal statutory rate and the Group's effective tax rate | Year Ended December 31, 2017 2018 2019 Statutory Rate: 35 % 25 % 25 % Effect of tax holidays applicable to subsidiaries and consolidated VIEs (1) 10 % 79 % (46 %) Tax differential from statutory rate applicable to subsidiaries and consolidated VIEs (14 %) (6 %) (12 %) Effect of withholding taxes (2) (2 %) (147 %) 40 % Changes in valuation allowance for deferred tax assets (56 %) (128 %) 260 % Research and development super-deduction 9 % 66 % (142 %) Others (13 %) (55 %) (17 %) (31 %) (166 %) 108 % Note (1): The reversal of income tax for preferential income tax rates that Changyou’s and Sogou’s subsidiaries and VIEs were entitled to as KNSEs or Software Enterprises for 2017, 2018 and 2019 was included in the “Effect of tax holidays applicable to subsidiaries and consolidated VIEs” in the above table. Note (2): The change was mainly due to additional income withholding tax of $47 million that was recognized in the first quarter of 2018 due to a revised policy for Changyou’s PRC subsidiaries with respect to their distribution of cash dividends. The revised policy was adopted to facilitate the distribution of a special cash dividend in the aggregate amount of approximately $500.0 million that was declared by Changyou’s Board of Directors on April 5, 2018. |
Deferred tax assets and liabilities | As of December 31, 2018 2019 Deferred tax assets: Net operating loss from operations $ 257,955 $ 290,266 Accrued bonus and commissions 26,704 25,457 Provision for inventory and doubtful receivables 3,931 7,517 Intangible assets transfer 1,524 916 Others 9,250 18,132 Total deferred tax assets 299,364 342,288 Less: Valuation allowance (272,008 ) (311,813 ) Net deferred tax assets $ 27,356 $ 30,475 Deferred tax liabilities Withholding tax for Dividend $ (79,824 ) $ (86,834 ) Intangible assets from business acquisitions (1,087 ) 0 Others (4,353 ) (9,070 ) Total deferred tax liabilities $ (85,264 ) $ (95,904 ) |
Movement of the valuation allowance | For the Year Ended 2017 2018 2019 Beginning balance $ 214,531 250,096 272,008 Provision for the year 56,259 41,405 52,939 Reversal for the year (33,392 ) (7,726 ) (8,650 ) Foreign currency translation adjustment 12,698 (11,767 ) (4,484 ) Ending balance $ 250,096 272,008 311,813 |
Uncertain tax positions | As of December 31, 2017 2018 2019 Beginning balance $ 32,682 $ 31,138 $ 174,363 Increases /(decreases) related to prior year tax positions (1,544 ) (1,190 ) 7,300 Increases related to current year tax positions 0 144,415 0 Ending balance $ 31,138 $ 174,363 $ 181,663 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Contractual Obligations | 2020 2021 2022 2023 2024 Thereafter Total Purchase of bandwidth $ 50,405 352 0 0 0 0 50,757 Operating rights for licensed games and titles of games in development 12,806 600 0 0 0 0 13,406 Purchase of content and services – video 7,429 2,013 0 0 0 0 9,442 Purchase of content and services – others 5,526 180 53 18 0 0 5,777 Goods purchases 5,633 0 0 0 0 0 5,633 Operating lease obligations 3,020 93 10 0 0 0 3,123 Interest payment commitment 2,164 0 0 0 0 0 2,164 Others 3,127 460 0 0 0 0 3,587 Total Payments Required $ 90,110 3,698 63 18 0 0 93,889 |
VIEs (Tables)
VIEs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
VIES [Abstract] | |
Financial information of consolidated VIEs | As of December 31, 2018 2019 ASSETS: Cash and cash equivalents $ 65,864 $ 52,744 Restricted cash 697 6,474 Account and financing receivables, net 122,884 140,300 Prepaid and other current assets 20,554 17,528 Short-term investments 7,305 7,192 Intra-Group receivables due from the CompanyÂ’s subsidiaries 390,157 420,103 Total current assets 607,461 644,341 Long-term investments, net 45,871 43,657 Fixed assets, net 1,793 1,400 Intangible assets, net 18,240 6,832 Goodwill 36,353 36,194 Other non-current 1,925 16,656 Total assets $ 711,643 $ 749,080 LIABILITIES: Accounts payable $ 84,749 $ 74,781 Accrued liabilities 60,555 64,874 Receipts in advance and deferred revenue 43,020 47,735 Other current liabilities 86,851 80,859 Intra-Group payables due to the CompanyÂ’s subsidiaries 273,672 300,601 Total current liabilities 548,847 568,850 Long-term tax liabilities 13,554 13,220 Deferred tax liabilities 2,239 1,998 Intra-Group payables due to the CompanyÂ’s subsidiaries 18,897 18,599 Other long-term liabilities 0 1,130 Total liabilities $ 583,537 $ 603,797 As of December 31, 2017 2018 2019 Net revenue $ 881,284 $ 923,131 $ 1,013,452 Net income /(loss) $ 34,910 $ (18,436 ) $ 18,116 Year ended December 31, 2017 2018 2019 Net cash provided by /(used in) operating activities $ (52,351 ) $ 69,925 $ (7,084 ) Net cash used in investing activities (14,020 ) (49,271 ) (18,481 ) Net cash provided by /(used in) financing activities $ (131 ) $ 650 $ 8,601 |
Sohu.com Limited Shareholders_2
Sohu.com Limited Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Sohu.com Limited's outstanding shares | Number of Outstanding Shares As of December 31, 2017 2018 2019 Balance, beginning of year 38,742 38,898 39,229 Issuance: 156 331 40 Balance, end of year 38,898 39,229 39,269 |
Sohu 2018 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share option activity | Options Number Of Shares Weighted Weighted Aggregate Outstanding as of January 1, 2019 42 $ 0.001 $ Granted 125 0.001 Exercised (39 ) 0.001 Forfeited or expired 0 Outstanding as of December 31, 2019 128 0.001 5.21 1,434 Vested as of December 31, 2019 128 0.001 5.21 1,434 Exercisable as of December 31, 2019 128 0.001 5.21 1,434 Note (1): The aggregated intrinsic value in the preceding table represents the difference between SohuÂ’s closing ADS price of $11.18 on December 31, 2019 and the nominal exercise price of the options. |
Sogou 2010 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share option activity | Options Number Of Shares Weighted Weighted Aggregate Outstanding as of January 1, 2019 6,445 $ 0.419 5.29 $ Granted 1,432 0.001 Exercised (500 ) 0.001 Forfeited or expired (215 ) 0.001 Outstanding as of December 31, 2019 7,162 0.377 4.45 29,887 Vested as of December 31, 2019 and expected to vest thereafter 6,572 0.411 4.35 27,198 Exercisable as of December 31, 2019 2,796 0.033 4.42 11,819 Note (1): The aggregate intrinsic values in the preceding table represent the difference between SogouÂ’s closing price of $4.55 per Sogou ADS (each representing one Sogou Class A Ordinary Share) on December 31, 2019 and the exercise prices of the share options. |
Summary of categories of share options | Contractually (in thousands) Granted (For Purposes of Share- (in thousands) Vested and (in thousands) Exercised (in thousands) Performance-based options 29,932 28,059 27,653 26,767 Service-based options 2,031 2,031 951 481 IPO-based 7,250 7,250 4,370 2,930 Total 39,213 37,340 32,974 30,178 |
Stock option assumptions | Assumptions Adopted 2017 2018 2019 Average risk-free interest rate 2.14%~3.00 % 3.36%~3.51 % 2.60%~2.86 % Exercise multiple 2~3 2 2~3 Expected forfeiture rate (post-vesting) 0%~12 % 12 % 0%~12 % Weighted average expected option life 7 9 7 Volatility rate 39%~47 % 40%~46 % 36%~41 % Dividend yield 0 % 0 % 0 % Weighted average fair value of share options 10.35 12.26 4.05 |
Sogou 2017 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share option activity | Options Number Of Weighted Weighted Aggregate Outstanding as of January 1, 2019 730 $ 0.001 9.57 $ Granted 267 0.001 Exercised (48 ) 0.001 Forfeited or expired (151 ) 0.001 Outstanding as of December 31, 2019 798 0.001 8.90 3,629 Vested as of December 31, 2019 and expected to vest thereafter 638 0.001 8.87 2,904 Exercisable as of December 31, 2019 121 0.001 8.55 551 Note (1): The aggregate intrinsic value in the preceding table represents the difference between the closing price of $4.55 per Sogou ADS (each representing one Class A Ordinary Share) on December 31, 2019 and the exercise prices of the share options. |
Summary of categories of share options | Contractually (in thousands) Granted (For Purposes of Share- (in thousands) Vested and (in thousands) Exercised (in thousands) Performance-based options 140 18 14 0 Service-based options 829 829 155 48 Total 969 847 169 48 |
Stock option assumptions | Assumptions Adopted 2018 2019 Average risk-free interest rate 3.41%~3.95 % 2.37%~3.45 % Exercise multiple 2 2~3 Expected forfeiture rate (post-vesting) 12 % 0%~12 % Weighted average expected option life 10 10 Volatility rate 40%~46 % 41%~42 % Dividend yield 0 % 0 % Weighted average fair value of share options 10.09 4.87 |
Sohu Management Sogou Share Option Arrangement [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share option activity | Number Of Weighted Weighted Aggregate Outstanding as of January 1, 2019 9 $ 0.001 6.38 $ Granted 0 Exercised 0 Forfeited or expired 0 Outstanding as of December 31, 2019 9 0.001 5.38 41 Vested as of December 31, 2019 9 0.001 5.38 41 Exercisable as of December 31, 2019 9 0.001 5.38 41 Note (1): The aggregate intrinsic values in the preceding table represent the difference between the closing price of $4.55 per Sogou ADS (each representing one Class A Ordinary Share) on December 31, 2019 and the exercise prices of the options. |
Summary of categories of share options | Contractually (in thousands) Granted (For Purposes of Share- (in thousands) Vested and (in thousands) Exercised (in thousands) Performance-based options 8,290 8,290 8,290 8,290 Service-based options 15 15 15 6 Total 8,305 8,305 8,305 8,296 |
Changyou 2014 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share option activity | Number Of Weighted Weighted Aggregate Outstanding as of January 1, 2019 601 $ 0.01 5.98 $ 5.487 Granted 234 0.01 Exercised (762 ) 0.01 Forfeited or expired 0 Outstanding as of December 31, 2019 73 0.01 5.42 357 Vested as of December 31, 2019 73 0.01 357 Exercisable as of December 31, 2019 73 0.01 Note (1): The aggregate intrinsic value in the preceding table represents the difference between ChangyouÂ’s closing price of $9.79 per ADS, or $4.9 per Class A ordinary share, on December 31, 2019 and the nominal exercise price of the share option. |
Video 2011 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock option assumptions | Assumptions Adopted 2018 2019 Average risk-free interest rate 3.19 % 2.44 % Exercise multiple 2.8 2.8 Expected forfeiture rate (post-vesting) 14 % 14 % Weighted average expected option life 3.0 2.0 Volatility rate 45.1 % 53.9 % Dividend yield 0 0 Fair value 0.53 0.35 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
NONCONTROLLING INTEREST [Abstract] | |
Noncontrolling interest in the consolidated balance sheets | As of December 31, 2018 2019 Sogou $ 686,503 $ 726,960 Changyou 277,608 151,503 Total $ 964,111 $ 878,463 |
Noncontrolling interest in the consolidated statements of comprehensive income /(loss) | Year Ended December 31, 2017 2018 2019 Sogou $ 77,025 $ 65,586 $ 58,955 Changyou 7,603 27,137 46,990 Other (105 ) 0 0 Total $ 84,523 $ 92,723 $ 105,945 Year Ended December 31, 2017 2018 2019 Net income from continuing operations attributable to noncontrolling shareholders $ 91,076 $ 107,318 $ 117,177 Net loss from discontinued operations attributable to noncontrolling shareholders (6,553 ) (14,595 ) (11,232 ) Net income attributable to noncontrolling interest shareholders $ 84,523 $ 92,723 $ 105,945 |
Net Income _(Loss) per Share (T
Net Income /(Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
NET INCOME /(LOSS) PER SHARE [Abstract] | |
Calculation of basic and diluted net loss per share | Year Ended December 31, 2017 2018 2019 Numerator: Net loss from continuing operations attributable to Sohu.com Limited, basic $ (540,548 ) $ (129,842 ) $ (126,570 ) Net loss from discontinued operations attributable to Sohu.com Limited, basic (13,978 ) (30,240 ) (22,766 ) Net loss attributable to Sohu.com Limited, basic (554,526 ) $ (160,082 ) (149,336 ) Effect of dilutive securities: Incremental dilution from Sogou (31 ) (496 ) (606 ) Incremental dilution from Changyou (1,233 ) (381 ) (507 ) Net loss from continuing operations attributable to Sohu.com Limited, diluted (542,026 ) (130,960 ) (127,738 ) Net loss from discontinued operations attributable to Sohu.com Limited, diluted (13,764 ) (29,999 ) (22,711 ) Net loss attributable to Sohu.com Limited, diluted $ (555,790 ) $ (160,959 ) $ (150,449 ) Denominator: Weighted average basic ordinary shares outstanding 38,858 38,959 39,249 Effect of dilutive securities: Share options and restricted share units 0 0 0 Weighted average diluted ordinary shares outstanding $ 38,858 $ 38,959 $ 39,249 Basic net loss per share attributable to Sohu.com Limited Continuing operations $ (13.91 ) $ (3.33 ) $ (3.22 ) Discontinued operations (0.36 ) (0.78 ) (0.58 ) Net loss per share (14.27 ) (4.11 ) (3.80 ) Diluted net loss per share attributable to Sohu.com Limited Continuing operations $ (13.95 ) $ (3.36 ) $ (3.25 ) Discontinued operations (0.35 ) (0.77 ) (0.58 ) Net loss per share (14.30 ) (4.13 ) (3.83 ) |
Additional Information - Cond_2
Additional Information - Condensed Financial Information of Registrant (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ADDITIONAL INFORMATION - CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract] | |
Condensed balance sheets | As of December 31, 2018 2019 ASSETS Current assets: Cash and cash equivalents $ 16,492 $ 3,756 Prepaid and other current assets 1,169 744 Due from subsidiaries and VIEs 470,649 530,182 Total current assets 488,310 534,682 Interests in subsidiaries and VIEs 224,679 22,093 Other assets, net 27,736 27,736 Total assets $ 740,725 $ 584,511 LIABILITIES AND SHAREHOLDERSÂ’ EQUITY Current liabilities 7,472 3,757 Long-term liabilities 144,414 152,300 Total liabilities 151,886 156,057 ShareholdersÂ’ equity: Ordinary Shares: $0.001 par value per share (75,400 shares authorized; 39,229 shares and 39,269 shares, respectively, issued and outstanding as of December 31, 2018 and 2019) 39 39 Additional paid-in 958,883 948,201 Accumulated other comprehensive income 24,718 24,351 Accumulated deficit (394,801 ) (544,137 ) Total shareholdersÂ’ equity 588,839 428,454 Total liabilities and shareholdersÂ’ equity $ 740,725 $ 584,511 |
Condensed statements of comprehensive loss | Year Ended December 31, 2017 2018 2019 Revenues $ 0 $ 0 $ 0 Cost of revenues 0 0 0 Gross profit 0 0 0 Operating expenses: General and administrative 8,824 12,206 2,320 Operating loss (8,824 ) (12,206 ) (2,320 ) Share of loss of subsidiaries and VIEs (331,106 ) (232,307 ) (184,092 ) Other income /(expense) 71 22 44,738 Interest income 152 5,865 225 Loss before income tax expense/(benefit) (339,707 ) (238,626 ) (141,449 ) Income tax expense/(benefit) 214,819 (78,544 ) 7,887 Net loss (554,526 ) (160,082 ) (149,336 ) Other comprehensive income /(loss) 34,992 (13,494 ) 24,351 Comprehensive loss $ (519,534 ) $ (173,576 ) $ (124,985 ) |
Condensed statements of cash flows | Year Ended December 31, 2017 2018 2019 Cash flows from operating activities: Net loss $ (554,526 ) $ (160,082 ) $ (149,336 ) Adjustments to reconcile net loss to net cash provided by operating activities: Investment loss from subsidiaries and VIEs 331,106 232,307 184,092 Share-based compensation expense /(benefit) (814 ) (1,916 ) 395 Others 0 (993 ) 0 Changes in current assets and liabilities: Due from subsidiaries and VIEs 0 (2,963 ) (59,533 ) Prepaid and other current assets 3,933 (3,996 ) 425 Tax liabilities 222,350 (79,569 ) 7,886 Accrued liabilities (8,194 ) 1,892 (3,715 ) Net cash used in operating activities (6,145 ) (15,320 ) (19,786 ) Cash flows from investing activities: Dividend received 0 0 7,050 Net cash used in operating activities 0 0 7,050 Net decrease in cash, cash equivalents, restricted cash and restricted time deposits (6,145 ) (15,320 ) (12,736 ) Cash, cash equivalents, restricted cash and restricted time deposits at beginning of year 8,990 2,845 16,732 Cash and cash equivalents, restricted cash and restricted time deposits of Sohu.com Limited at the date of the liquidation of Sohu.com Inc. 0 29,207 0 Cash, cash equivalents, restricted cash and restricted time deposits at end of year $ 2,845 $ 16,732 $ 3,996 Reconciliation of cash, cash equivalents, and restricted time deposits to the condensed balance sheets: Cash and cash equivalents $ 2,845 $ 16,492 $ 3,756 Restricted time deposits included in other assets 0 240 240 Total cash, cash equivalents, restricted cash and restricted time deposits at end of year $ 2,845 $ 16,732 $ 3,996 |
The Company and Nature of Ope_3
The Company and Nature of Operations (Information of Subsidiaries and VIEs) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Sohu.com (Hong Kong) Limited ("Sohu HK") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Apr. 19, 2000 |
Place of Incorporation/Acquisition | Hong Kong |
Effective Interest held | 100.00% |
Beijing Sohu New Era Information Technology Co., Ltd. ("Sohu Era") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Jul. 25, 2003 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 100.00% |
Sohu.com (Search) Limited ("Sohu Search") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Oct. 28, 2005 |
Place of Incorporation/Acquisition | Cayman Islands |
Effective Interest held | 100.00% |
Beijing Sohu New Media Information Technology Co., Ltd. ("Sohu Media") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Jun. 19, 2006 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 100.00% |
Sohu.com (Game) Limited ("Sohu Game") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Feb. 11, 2008 |
Place of Incorporation/Acquisition | Cayman Islands |
Effective Interest held | 100.00% |
Beijing Sohu New Momentum Information Technology Co., Ltd. ("Sohu New Momentum") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | May 31, 2010 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 100.00% |
Fox Video Limited ("Sohu Video") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Jul. 26, 2011 |
Place of Incorporation/Acquisition | Cayman Islands |
Effective Interest held | 100.00% |
Fox Information Technology (Tianjin) Limited ("Video Tianjin") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Nov. 17, 2011 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 100.00% |
Sohu Focus Limited ("Sohu Focus") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Jul. 11, 2013 |
Place of Incorporation/Acquisition | Cayman Islands |
Effective Interest held | 100.00% |
Sogou Inc. ("Sogou") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Dec. 23, 2005 |
Place of Incorporation/Acquisition | Cayman Islands |
Effective Interest held | 34.00% |
Sogou (BVI) Limited ("Sogou BVI") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Dec. 23, 2005 |
Place of Incorporation/Acquisition | British Virgin Islands |
Effective Interest held | 34.00% |
Beijing Sogou Technology Development Co., Ltd. ("Sogou Technology") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Feb. 8, 2006 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 34.00% |
Sogou Hong Kong Limited ("Sogou HK") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Dec. 12, 2007 |
Place of Incorporation/Acquisition | Hong Kong |
Effective Interest held | 34.00% |
Vast Creation Advertising Media Services Limited ("Vast Creation") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Nov. 30, 2011 |
Place of Incorporation/Acquisition | Hong Kong |
Effective Interest held | 34.00% |
Beijing Sogou Network Technology Co., Ltd ("Sogou Network") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Mar. 29, 2012 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 34.00% |
Sogou (Shantou) Internet Microcredit Co., Ltd. ("Sogou Microcredit") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Nov. 22, 2017 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 34.00% |
Sogou (Hangzhou) Intelligent Technology Co., Ltd. ("Sogou Hangzhou") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Apr. 28, 2018 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 34.00% |
Shantou Ying Zhong Bai Fu Financing Guarantee Co., Ltd. ("Sogou Financing Guarantee") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Jul. 24, 2019 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 34.00% |
Changyou.com Limited ("Changyou") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Aug. 6, 2007 |
Place of Incorporation/Acquisition | Cayman Islands |
Effective Interest held | 67.00% |
Changyou.com (HK) Limited ("Changyou HK") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Aug. 13, 2007 |
Place of Incorporation/Acquisition | Hong Kong |
Effective Interest held | 67.00% |
Beijing AmazGame Age Internet Technology Co., Ltd. ("AmazGame") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Sep. 26, 2007 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 67.00% |
Beijing Changyou Gamespace Software Technology Co., Ltd. ("Gamespace") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Oct. 29, 2009 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 67.00% |
Beijing Changyou Chuangxiang Software Technology Co., Ltd. ("Changyou Chuangxiang") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Nov. 8, 2016 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 67.00% |
Beijing Century High-Tech Investment Co., Ltd. ("High Century") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Dec. 28, 2001 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 100.00% |
Beijing Heng Da Yi Tong Information Technology Co., Ltd. ("Heng Da Yi Tong") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Feb. 7, 2002 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 100.00% |
Beijing Sohu Internet Information Service Co., Ltd. ("Sohu Internet") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Jul. 31, 2003 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 100.00% |
Beijing Sohu Donglin Advertising Co., Ltd. ("Donglin") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | May 17, 2010 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 100.00% |
Tianjin Jinhu Culture Development Co., Ltd ("Tianjin Jinhu") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Nov. 24, 2011 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 100.00% |
Beijing Focus Interactive Information Service Co., Ltd. ("Focus Interactive") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Jul. 15, 2014 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 100.00% |
Beijing Sogou Information Service Co., Ltd.("Sogou Information") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Dec. 28, 2005 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 34.00% |
Chengdu Easypay Technology Co., Ltd. ("Chengdu Easypay") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Jan. 19, 2015 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 34.00% |
Beijing Gamease Age Digital Technology Co., Ltd. ("Gamease") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Aug. 23, 2007 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 67.00% |
Shanghai ICE Information Technology Co., Ltd. ("Shanghai ICE") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | May 28, 2010 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 67.00% |
Beijing Guanyou Gamespace Digital Technology Co., Ltd. ("Guanyou Gamespace") [Member] | |
Organization and Nature of Operations [Line Items] | |
Date of Incorporation/Acquisition | Aug. 5, 2010 |
Place of Incorporation/Acquisition | People's Republic of China |
Effective Interest held | 67.00% |
The Company and Nature of Ope_4
The Company and Nature of Operations (Sogou's Business, Intitial Public Offering of Sogou) (Details) - USD ($) $ in Thousands | Nov. 14, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Organization and Nature of Operations [Line Items] | |||||
Proceeds from IPO, after deducting underwriting discounts and commissions and offering expenses | $ 0 | $ 0 | $ 622,131 | ||
One-time credit to additional paid-in capital in shareholders' equity resulted from the completion of Sogou's IPO | $ 622,131 | ||||
Sogou [Member] | IPO [Member] | |||||
Organization and Nature of Operations [Line Items] | |||||
Proceeds from IPO, after deducting underwriting discounts and commissions and offering expenses | $ 622,100 | ||||
One-time credit to additional paid-in capital in shareholders' equity resulted from the completion of Sogou's IPO | $ 278,400 |
The Company and Nature of Ope_5
The Company and Nature of Operations (Sogou's Business, Sogou's Share Structure) (Details) | 12 Months Ended | |
Dec. 31, 2019shares | Dec. 31, 2018shares | |
Organization and Nature of Operations [Line Items] | ||
Number of shares issued | 39,269,000 | 39,229,000 |
Number of shares outstanding | 39,269,000 | 39,229,000 |
Sogou [Member] | Ordinary Shares [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Number of shares outstanding | 388,731,140 | |
Sogou [Member] | Class A Ordinary Shares [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Voting right entitled to ordinary shares | One vote per share | |
Number of shares outstanding for legal purpose | 5,520,000 | |
Sogou [Member] | Class A Ordinary Shares [Member] | Sohu [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Number of shares outstanding | 3,717,250 | |
Sogou [Member] | Class A Ordinary Shares [Member] | Photon [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Number of shares outstanding | 24,686,863 | |
Sogou [Member] | Class A Ordinary Shares [Member] | Other than Sohu,Tencent,and Photon [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Number of shares outstanding | 81,569,152 | |
Sogou [Member] | Class B Ordinary Shares [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Voting right entitled to ordinary shares | Ten votes per share | |
Conversion into Class A ordinary shares, shares, each Class B Ordinary Share | 1 | |
Sogou [Member] | Class B Ordinary Shares [Member] | Sohu [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Number of shares outstanding | 127,200,000 | |
Sogou [Member] | Class B Ordinary Shares [Member] | Tencent [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Number of shares outstanding | 151,557,875 |
The Company and Nature of Ope_6
The Company and Nature of Operations (Sogou's Business, Voting Agreement) (Details) - Sogou [Member] | 12 Months Ended |
Dec. 31, 2019Directorsshares | |
Within three years following the completion of Sogou's IPO [Member] | |
Organization and Nature of Operations [Line Items] | |
Provisions of the Voting Agreement | Within three years following the completion of Sogou's IPO, Sohu will vote all Sogou Class B Ordinary Shares and any Sogou Class A Ordinary Shares held by it and Tencent will vote 45,578,896 of its Sogou Class B Ordinary Shares to elect a Board of Directors consisting of seven directors, four of whom will be appointed by Sohu, two of whom will be appointed by Tencent, and the seventh of whom will be Sogou's then chief executive officer. |
Number of Directors entitled to elect or appoint under the Voting Agreement | 7 |
After three years following the completion of Sogou's IPO [Member] | |
Organization and Nature of Operations [Line Items] | |
Provisions of the Voting Agreement | After three years following the completion of Sogou's IPO, Sohu will be entitled to choose to change the size and composition of Sogou's Board of Directors, subject to Tencent's right to appoint at least one director. |
Sohu.com Limited [Member] | |
Organization and Nature of Operations [Line Items] | |
Combined voting power given to Sohu | 50.10% |
Sohu.com Limited [Member] | Within three years following the completion of Sogou's IPO [Member] | |
Organization and Nature of Operations [Line Items] | |
Number of Directors entitled to elect or appoint under the Voting Agreement | 4 |
Tencent Holdings Limited [Member] | Within three years following the completion of Sogou's IPO [Member] | |
Organization and Nature of Operations [Line Items] | |
Number of Directors entitled to elect or appoint under the Voting Agreement | 2 |
IPO [Member] | Sohu.com Limited [Member] | |
Organization and Nature of Operations [Line Items] | |
The condition period after the completion of Sogou's IPO to reinstate or terminate voting arrangements | 5 years |
Ordinary Shares [Member] | Minimum [Member] | |
Organization and Nature of Operations [Line Items] | |
Minimum percentage of consent from holder required | 15.00% |
Ordinary Shares [Member] | Sohu.com Limited [Member] | |
Organization and Nature of Operations [Line Items] | |
Approximate percentage of Sogou's total outstanding Class A and Class B Ordinary Shares | 34.00% |
Approximate voting power of Sogou's total outstanding Class A and Class B Ordinary Shares | 44.00% |
Ordinary Shares [Member] | Sohu.com Limited [Member] | Minimum [Member] | |
Organization and Nature of Operations [Line Items] | |
Total voting power held alone by Sohu to automatically suspend the voting arrangements with respect to the size and composition of Sogou's Board of Directors | 50.00% |
Ordinary Shares [Member] | Tencent Holdings Limited [Member] | |
Organization and Nature of Operations [Line Items] | |
Approximate percentage of Sogou's total outstanding Class A and Class B Ordinary Shares | 39.00% |
Approximate voting power of Sogou's total outstanding Class A and Class B Ordinary Shares | 52.00% |
Ordinary Shares [Member] | Tencent Holdings Limited [Member] | After three years following the completion of Sogou's IPO [Member] | Minimum [Member] | |
Organization and Nature of Operations [Line Items] | |
Number of Directors entitled to elect or appoint under the Voting Agreement | 1 |
Ordinary Shares [Member] | Sohu and Tencent [Member] | Minimum [Member] | |
Organization and Nature of Operations [Line Items] | |
Minimum percentage of total voting power held by Sohu and Tencent together to remove and replace the directors appointed | 50.00% |
Minimum percentage of issued shares held with respect to required terms | 15.00% |
Class B Ordinary Shares [Member] | Tencent Holdings Limited [Member] | Maximum [Member] | |
Organization and Nature of Operations [Line Items] | |
Maximum number of ordinary shares held by Tencent to be required to vote | shares | 45,578,896 |
Class B Ordinary Shares [Member] | Tencent Holdings Limited [Member] | Within three years following the completion of Sogou's IPO [Member] | |
Organization and Nature of Operations [Line Items] | |
Number of ordinary shares to be voted to select directors | shares | 45,578,896 |
Class B Ordinary Shares [Member] | IPO [Member] | Sohu.com Limited [Member] | Minimum [Member] | |
Organization and Nature of Operations [Line Items] | |
Minimum percentage of ordinary shares transfer to terminate the voting agreement | 30.00% |
The Company and Nature of Ope_7
The Company and Nature of Operations (Changyou's Business) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 17, 2020 | |
Organization and Nature of Operations [Line Items] | ||||
Revenues | $ 1,845,447 | $ 1,812,827 | $ 1,769,589 | |
Number of shares issued | 39,269,000 | 39,229,000 | ||
Number of shares outstanding | 39,269,000 | 39,229,000 | ||
TLBB [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Revenues | $ 215,200 | |||
Legacy TLBB Mobile [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Revenues | $ 101,100 | |||
Product Risk [Member] | Total revenues [Member] | TLBB [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Percentage of concentration risk | 12.00% | |||
Product Risk [Member] | Total revenues [Member] | Legacy TLBB Mobile [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Percentage of concentration risk | 5.00% | |||
Changyou [Member] | Sohu.com Limited [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Voting power held by the Company | 95.00% | |||
Changyou [Member] | Sohu.com Limited [Member] | Changyou Merger [Member] | Subsequent Event [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Voting power held by the Company | 100.00% | |||
Changyou [Member] | Ordinary Shares [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Number of shares issued | 107,263,420 | |||
Number of shares outstanding | 107,263,420 | |||
Changyou [Member] | Ordinary Shares [Member] | Sohu.com Limited [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Percentage of outstanding equity capital held by the Company | 67.00% | |||
Changyou [Member] | Ordinary Shares [Member] | Sohu.com Limited [Member] | Changyou Merger [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Percentage of outstanding equity capital held by the Company | 100.00% | |||
Changyou [Member] | Class A Ordinary Shares [Member] | Sohu.com Limited [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Number of shares outstanding | 1,500,000 | |||
Changyou [Member] | Class A Ordinary Shares [Member] | Public shareholders [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Number of shares outstanding | 35,513,420 | |||
Changyou [Member] | Class B Ordinary Shares [Member] | Sohu.com Limited [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Number of shares outstanding | 70,250,000 | |||
Changyou [Member] | ADSs [Member] | Public shareholders [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Number of shares outstanding | 35,513,420 | |||
Changyou [Member] | Product Risk [Member] | Online game revenues [Member] | TLBB [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Percentage of concentration risk | 49.00% | |||
Changyou [Member] | Product Risk [Member] | Online game revenues [Member] | Legacy TLBB Mobile [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Percentage of concentration risk | 23.00% | |||
Changyou [Member] | Product Risk [Member] | Total revenues [Member] | TLBB [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Percentage of concentration risk | 47.00% | |||
Changyou [Member] | Product Risk [Member] | Total revenues [Member] | Legacy TLBB Mobile [Member] | ||||
Organization and Nature of Operations [Line Items] | ||||
Percentage of concentration risk | 22.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Revenue Recognition, Adoption of ASC 606, Revenues Disaggregated by Products and Services) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization and Nature of Operations [Line Items] | |||
Revenues | $ 1,845,447 | $ 1,812,827 | $ 1,769,589 |
Sohu [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 218,226 | 274,223 | 372,774 |
Sogou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 1,171,841 | 1,123,045 | 908,006 |
Changyou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 455,380 | 415,559 | 488,809 |
Brand advertising [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 174,861 | 231,945 | 314,112 |
Sohu Media Portal [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 94,497 | 127,348 | 152,015 |
Sohu Media Portal [Member] | Sohu [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 94,497 | 127,348 | 152,015 |
Sohu Media Portal [Member] | Sogou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 0 | 0 | 0 |
Sohu Media Portal [Member] | Changyou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 0 | 0 | 0 |
Sohu Video [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 34,529 | 53,756 | 79,756 |
Sohu Video [Member] | Sohu [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 34,529 | 53,756 | 79,756 |
Sohu Video [Member] | Sogou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 0 | 0 | 0 |
Sohu Video [Member] | Changyou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 0 | 0 | 0 |
Focus [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 32,120 | 31,144 | 57,245 |
Focus [Member] | Sohu [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 32,120 | 31,144 | 57,245 |
Focus [Member] | Sogou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 0 | 0 | 0 |
Focus [Member] | Changyou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 0 | 0 | 0 |
17173.com Website [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 13,715 | 19,697 | 25,096 |
17173.com Website [Member] | Sohu [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 0 | 0 | 0 |
17173.com Website [Member] | Sogou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 0 | 0 | 0 |
17173.com Website [Member] | Changyou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 13,715 | 19,697 | 25,096 |
Search and search related advertising [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 1,072,860 | 1,022,456 | 801,199 |
Search and search related advertising [Member] | Sohu [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 0 | 0 | 0 |
Search and search related advertising [Member] | Sogou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 1,072,860 | 1,022,456 | 801,199 |
Search and search related advertising [Member] | Changyou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 0 | 0 | 0 |
Online games [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 440,902 | 389,788 | 449,533 |
PC games [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 267,752 | 236,743 | 239,149 |
PC games [Member] | Sohu [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 0 | 0 | 0 |
PC games [Member] | Sogou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 0 | 0 | 0 |
PC games [Member] | Changyou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 267,752 | 236,743 | 239,149 |
Mobile games [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 172,718 | 151,737 | 208,355 |
Mobile games [Member] | Sohu [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 0 | 0 | 0 |
Mobile games [Member] | Sogou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 0 | 0 | 0 |
Mobile games [Member] | Changyou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 172,718 | 151,737 | 208,355 |
Other games [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 432 | 1,308 | 2,029 |
Other games [Member] | Sohu [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 0 | 0 | 0 |
Other games [Member] | Sogou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 0 | 0 | 0 |
Other games [Member] | Changyou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 432 | 1,308 | 2,029 |
Others [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 156,824 | 168,638 | 204,745 |
Others [Member] | Sohu [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 57,080 | 61,975 | 83,758 |
Others [Member] | Sogou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | 98,981 | 100,589 | 106,807 |
Others [Member] | Changyou [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | $ 763 | $ 6,074 | $ 14,180 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Revenue Recognition, Contract Balances) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||
Allowance for doubtful accounts and authorized credits | $ 16,211 | $ 15,085 | $ 4,871 | $ 4,274 |
Amount of revenue recognized that included in receipts in advance and deferred revenue | $ 110,200 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Share-based Compensation Expense) (Details) - Stock Options [Member] - shares | Jan. 04, 2012 | Dec. 31, 2019 |
Sohu (excluding Sohu Video) [Member] | Sohu 2018 Share Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Installments of share options granted | Four equal installments | |
Award vesting period | 4 years | |
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Installments of share options granted | Four equal installments | |
Award vesting period | 4 years | |
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Installments of share options granted | Four equal installments | |
Changyou [Member] | Changyou 2019 Share Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Installments of share options granted | Four equal installments | |
Award vesting period | 4 years | |
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Ordinary Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Installments of share options granted | Four equal installments | |
Number of shares authorized for issuance | 25,000,000 | |
Percentage of outstanding ordinary shares on a fully-diluted basis | 10.00% | |
Number of shares under contractually granted share options | 16,368,200 | |
Number of shares purchased on vested options | 4,972,800 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Taxation) (Details) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 9 Months Ended | 11 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Apr. 30, 2018 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Taxation [Line Items] | |||||||
Withholding tax rate on dividends, foreign invested enterprises to foreign holding companies | 10.00% | ||||||
Statutory income tax rate | 25.00% | 25.00% | 35.00% | ||||
Provisional amount of income tax expense recognized for the Toll Charge | $ 219 | ||||||
Reduction in liability for deferred income tax | 4 | ||||||
Unrecognized tax benefit recorded in 2018 | $ 142 | ||||||
Interest in connection with unrecognized tax benefit | $ 8 | $ 2 | $ 8 | ||||
Thereafter tax years after December 31,2017 [Member] | |||||||
Taxation [Line Items] | |||||||
Statutory income tax rate | 21.00% | ||||||
Prior tax years before December 31,2017 [Member] | |||||||
Taxation [Line Items] | |||||||
Statutory income tax rate | 35.00% | ||||||
State Administration of Taxation, China [Member] | Minimum [Member] | |||||||
Taxation [Line Items] | |||||||
Value-added tax rate | 6.00% | 6.00% | 6.00% | 6.00% | |||
State Administration of Taxation, China [Member] | Maximum [Member] | |||||||
Taxation [Line Items] | |||||||
Value-added tax rate | 17.00% | 13.00% | 16.00% | 17.00% | |||
HONG KONG | |||||||
Taxation [Line Items] | |||||||
Preferential withholding tax rate on dividends, foreign invested enterprises | 5.00% | ||||||
State Administration of Taxation, China [Member] | |||||||
Taxation [Line Items] | |||||||
Withholding tax rate on dividends, foreign invested enterprises to foreign holding companies | 10.00% | ||||||
Statutory income tax rate | 25.00% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Estimated Useful Lives of Fixed Assets) (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Office buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | 36-47 |
Fixed assets, residual value | $ 0 |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | Lesser of term of the lease or the estimated useful lives of the assets |
Fixed assets, residual value | $ 0 |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | 4-10 |
Fixed assets, residual value | $ 0 |
Office furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | 5 |
Fixed assets, residual value | $ 0 |
Computer equipment and hardware [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | 2-5 |
Fixed assets, residual value | $ 0 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Estimated Useful Lives of Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Purchased Video content [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (years) | 1 month to 2 years |
Intangible assets, residual value | $ 0 |
Computer software [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (years) | 1-5 |
Intangible assets, residual value | $ 0 |
Developed technologies [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (years) | 3-10 |
Intangible assets, residual value | $ 0 |
Domain names and trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (years) | 4-30 |
Intangible assets, residual value | $ 0 |
Operating rights for licensed games [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (years) | over the contract terms |
Intangible assets, residual value | $ 0 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Lease) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Amount of right-of-use asset expected to be recorded after adoption of ASU 2016-02 | $ 16,656 | |
Amount of lease liability expected to be recorded of ASU 2016-02 | $ 14,386 | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Amount of right-of-use asset expected to be recorded after adoption of ASU 2016-02 | $ 25,300 | |
Amount of lease liability expected to be recorded of ASU 2016-02 | $ 22,900 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Impact of Recently Issued Accounting Pronouncements, Impact of Recently Issued Accounting Pronouncements not Yet Adopted) (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Amount of right-of-use asset expected to be recorded after adoption of ASU 2016-02 | $ 16,656 | ||
Amount of lease liability expected to be recorded of ASU 2016-02 | $ 14,386 | ||
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Amount of right-of-use asset expected to be recorded after adoption of ASU 2016-02 | $ 25,300 | ||
Amount of lease liability expected to be recorded of ASU 2016-02 | $ 22,900 | ||
Accounting Standards Update 2016-13 [Member] | Subsequent Event [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase of allowance for credit losses on ASU 2016-13 | $ 6,700 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2011 | May 31, 2010 | Jun. 30, 2019 | Dec. 31, 2011 | Dec. 31, 2019 | Dec. 31, 2018 | |
Discontinued Operations [Line Items] | ||||||
Goodwill impairment loss | $ 0 | $ 16,369,000 | ||||
Changyou [Member] | ||||||
Discontinued Operations [Line Items] | ||||||
Total cash consideration | $ 0 | |||||
Changyou [Member] | Shanghai Jingmao Culture Communication Co., Ltd. ("Shanghai Jingmao") and its affiliate [Member] | Cinema Advertising [Member] | ||||||
Discontinued Operations [Line Items] | ||||||
Total cash consideration | $ 3,000,000 | |||||
Goodwill impairment loss | $ 5,200,000 | |||||
Asset impairment charge | $ 17,000,000 | |||||
Changyou [Member] | Shanghai Jingmao Culture Communication Co., Ltd. ("Shanghai Jingmao") and its affiliate [Member] | Shanghai Jingmao Culture Communication Co., Ltd. ("Shanghai Jingmao") and its affiliate [Member] | Cinema Advertising [Member] | ||||||
Discontinued Operations [Line Items] | ||||||
Percentage of acquired equity interests | 50.00% | 50.00% |
Discontinued Operations (Balanc
Discontinued Operations (Balance Sheet Information of Discontinued Operations) (Details) - Changyou [Member] - Shanghai Jingmao Culture Communication Co., Ltd. ("Shanghai Jingmao") and its affiliate [Member] $ in Thousands | Dec. 31, 2018USD ($) |
Assets | |
Cash and cash equivalents | $ 229 |
Restricted cash | 2,435 |
Accounts receivable, net | 16,761 |
Prepaid and other current assets | 14,899 |
Total current assets associated with discontinued operations | 34,324 |
Fixed assets, net | 351 |
Intangible assets, net | 47 |
Total non-current assets associated with discontinued operations | 398 |
Total assets associated with discontinued operations | 34,722 |
Liabilities | |
Payable to Changyou | 72,319 |
Accounts payable | 9,210 |
Receipts in advance and deferred revenue | 4,378 |
Accrued salary and benefits | 4,888 |
Accrued liabilities to suppliers | 9,632 |
Tax payables | 496 |
Other short-term liabilities | 182 |
Total current liabilities associated with discontinued operations | 101,105 |
Total liabilities associated with discontinued operations | $ 101,105 |
Discontinued Operations (Compre
Discontinued Operations (Comprehensive Income Information of Discontinued Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Discontinued Operations [Line Items] | ||||
Net loss from discontinued operations, net of tax | $ (33,998) | $ (44,835) | $ (20,531) | |
Changyou [Member] | Shanghai Jingmao Culture Communication Co., Ltd. ("Shanghai Jingmao") and its affiliate [Member] | ||||
Discontinued Operations [Line Items] | ||||
Revenues | 37,323 | [1] | 70,202 | 91,419 |
Cost of revenues | 43,857 | [1] | 89,233 | 84,944 |
Gross profit | (6,534) | [1] | (19,031) | 6,475 |
Operating expenses | 27,390 | [1] | 25,253 | 26,455 |
Operating profit | (33,924) | [1] | (44,284) | (19,980) |
Interest income | 7 | [1] | 6 | 0 |
Other income, net | 61 | [1] | (557) | (39) |
Income before income tax expense | (33,856) | [1] | (44,835) | (20,019) |
Income tax expense | 142 | [1] | 0 | 512 |
Net loss from discontinued operations, net of tax | (33,998) | [1] | (44,835) | (20,531) |
Changyou [Member] | Shanghai Jingmao Culture Communication Co., Ltd. ("Shanghai Jingmao") and its affiliate [Member] | Sales and marketing [Member] | ||||
Discontinued Operations [Line Items] | ||||
Operating expenses | 8,807 | [1] | 20,288 | 22,622 |
Changyou [Member] | Shanghai Jingmao Culture Communication Co., Ltd. ("Shanghai Jingmao") and its affiliate [Member] | General and administrative [Member] | ||||
Discontinued Operations [Line Items] | ||||
Operating expenses | $ 18,583 | [1] | $ 4,965 | $ 3,833 |
[1] | Includes the financial results of the discontinued operations from January 1, 2019 to August 12, 2019. |
Discontinued Operations (Cash F
Discontinued Operations (Cash Flow Information of Discontinued Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Discontinued Operations [Line Items] | ||||
Net cash provided by/(used in) discontinued operating activities | $ 9,341 | $ 3,422 | $ 1,062 | |
Net cash provided by/(used in) discontinued investing activities | (10,808) | (718) | (954) | |
Changyou [Member] | Shanghai Jingmao Culture Communication Co., Ltd. ("Shanghai Jingmao") and its affiliate [Member] | ||||
Discontinued Operations [Line Items] | ||||
Net cash provided by/(used in) discontinued operating activities | 9,341 | [1] | 3,422 | 1,062 |
Net cash provided by/(used in) discontinued investing activities | (10,808) | [1] | (718) | (954) |
Net cash provided by/(used in) discontinued financing activities | $ 0 | [1] | $ 0 | $ 0 |
[1] | Includes the financial results of the discontinued operations from January 1, 2019 to August 12, 2019. |
Segment Information (Segment Op
Segment Information (Segment Operating Information by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Operating Segments [Member] | Sohu [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | [1] | $ 218,442 | $ 274,670 | $ 374,696 | |||
Segment cost of revenues | (148,258) | (218,184) | (414,526) | ||||
Segment gross profit | 70,184 | 56,486 | (39,830) | ||||
SBC in cost of revenues | [2] | (23) | 707 | 415 | |||
Gross profit | 70,161 | 57,193 | (39,415) | ||||
Operating expenses: | |||||||
Product development | (113,762) | [3] | (123,743) | [4] | (113,590) | [5] | |
Sales and marketing | [1] | (155,226) | [3] | (203,307) | [4] | (199,304) | [5] |
General and administrative | (32,218) | [3] | (48,664) | [4] | (44,563) | [5] | |
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | (7,245) | 0 | 0 | ||||
SBC in operating expenses | [2] | (1,022) | 4,940 | (765) | |||
Total operating expenses | (309,473) | (370,774) | (358,222) | ||||
Operating profit /(loss) | (239,312) | (313,581) | (397,637) | ||||
Other income /(expense) | 331,599 | [3] | 345,416 | [4] | 4,694 | [5] | |
Interest income | [6] | 24,361 | 14,001 | 7,344 | |||
Interest expense | [6] | (46,730) | (39,709) | (24,367) | |||
Exchange difference | (445) | 1,981 | (2,107) | ||||
Income /(loss) before income tax benefit /(expense) | 69,473 | 8,108 | (412,073) | ||||
Income tax benefit /(expense) | (8,351) | 79,053 | (217,959) | ||||
Net loss from continuing operations | 61,122 | 87,161 | (630,032) | ||||
Net loss from discontinued operations | 0 | 0 | 0 | ||||
Net loss | 61,122 | 87,161 | (630,032) | ||||
Operating Segments [Member] | Sogou [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | [1] | 1,172,252 | 1,124,158 | 908,357 | |||
Segment cost of revenues | (737,981) | (692,801) | (456,861) | ||||
Segment gross profit | 434,271 | 431,357 | 451,496 | ||||
SBC in cost of revenues | [2] | (473) | (669) | (540) | |||
Gross profit | 433,798 | 430,688 | 450,956 | ||||
Operating expenses: | |||||||
Product development | (179,705) | [3] | (191,426) | [4] | (156,359) | [5] | |
Sales and marketing | [1] | (134,565) | [3] | (144,867) | [4] | (152,121) | [5] |
General and administrative | (39,665) | [3] | (36,177) | [4] | (25,407) | [5] | |
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 0 | 0 | 0 | ||||
SBC in operating expenses | [2] | (15,428) | (13,535) | (27,193) | |||
Total operating expenses | (369,363) | (386,005) | (361,080) | ||||
Operating profit /(loss) | 64,435 | 44,683 | 89,876 | ||||
Other income /(expense) | 21,126 | [3] | 41,489 | [4] | 692 | [5] | |
Interest income | [6] | 4,443 | 8,037 | 9,126 | |||
Interest expense | [6] | 0 | 0 | 0 | |||
Exchange difference | 1,849 | 5,725 | (7,082) | ||||
Income /(loss) before income tax benefit /(expense) | 91,853 | 99,934 | 92,612 | ||||
Income tax benefit /(expense) | (2,748) | (1,153) | (14,422) | ||||
Net loss from continuing operations | 89,105 | 98,781 | 78,190 | ||||
Net loss from discontinued operations | 0 | 0 | 0 | ||||
Net loss | 89,105 | 98,781 | 78,190 | ||||
Operating Segments [Member] | Changyou [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | [1] | 455,380 | 415,561 | 488,842 | |||
Segment cost of revenues | (95,268) | (71,626) | (78,769) | ||||
Segment gross profit | 360,112 | 343,935 | 410,073 | ||||
SBC in cost of revenues | [2] | (120) | 31 | (73) | |||
Gross profit | 359,992 | 343,966 | 410,000 | ||||
Operating expenses: | |||||||
Product development | (119,726) | [3] | (126,593) | [4] | (124,869) | [5] | |
Sales and marketing | [1] | (49,768) | [3] | (34,512) | [4] | (37,083) | [5] |
General and administrative | (22,074) | [3] | (28,657) | [4] | (33,385) | [5] | |
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 0 | (16,369) | (86,882) | ||||
SBC in operating expenses | [2] | (1,185) | 6,430 | (17,320) | |||
Total operating expenses | (192,753) | (199,701) | (299,539) | ||||
Operating profit /(loss) | 167,239 | 144,265 | 110,461 | ||||
Other income /(expense) | 14,477 | [3] | 23,436 | [4] | 9,413 | [5] | |
Interest income | [6] | 39,441 | 34,403 | 32,319 | |||
Interest expense | [6] | (25,339) | (10,197) | (4,372) | |||
Exchange difference | 1,875 | 1,320 | (5,196) | ||||
Income /(loss) before income tax benefit /(expense) | 197,693 | 193,227 | 142,625 | ||||
Income tax benefit /(expense) | (20,077) | (64,467) | (40,255) | ||||
Net loss from continuing operations | 177,616 | 128,760 | 102,370 | ||||
Net loss from discontinued operations | (33,998) | (44,835) | (20,531) | ||||
Net loss | 143,618 | 83,925 | 81,839 | ||||
Eliminations [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | [1] | (627) | (1,562) | (2,306) | |||
Segment cost of revenues | 28 | 56 | 86 | ||||
Segment gross profit | (599) | (1,506) | (2,220) | ||||
SBC in cost of revenues | [2] | 0 | 0 | 0 | |||
Gross profit | (599) | (1,506) | (2,220) | ||||
Operating expenses: | |||||||
Product development | 6,142 | [3] | 6,733 | [4] | 6,192 | [5] | |
Sales and marketing | [1] | 2,117 | [3] | 2,801 | [4] | 4,000 | [5] |
General and administrative | 358 | [3] | 362 | [4] | 130 | [5] | |
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 0 | 0 | 0 | ||||
SBC in operating expenses | [2] | 0 | 0 | 0 | |||
Total operating expenses | 8,617 | 9,896 | 10,322 | ||||
Operating profit /(loss) | 8,018 | 8,390 | 8,102 | ||||
Other income /(expense) | (345,254) | [3] | (345,617) | [4] | (8,102) | [5] | |
Interest income | [6] | (57,699) | (32,367) | (24,651) | |||
Interest expense | [6] | 57,699 | 32,368 | 24,651 | |||
Exchange difference | 0 | 0 | 0 | ||||
Income /(loss) before income tax benefit /(expense) | (337,236) | (337,226) | 0 | ||||
Income tax benefit /(expense) | 0 | 0 | 0 | ||||
Net loss from continuing operations | (337,236) | (337,226) | 0 | ||||
Net loss from discontinued operations | 0 | 0 | 0 | ||||
Net loss | (337,236) | (337,226) | 0 | ||||
Revenues | 1,845,447 | 1,812,827 | 1,769,589 | ||||
Segment cost of revenues | (981,479) | (982,555) | (950,070) | ||||
Segment gross profit | 863,968 | 830,272 | 819,519 | ||||
SBC in cost of revenues | [2] | (616) | 69 | (198) | |||
Gross profit | 863,352 | 830,341 | 819,321 | ||||
Product development | (407,051) | [3] | (435,029) | [4] | (388,626) | [5] | |
Sales and marketing | [1] | (337,442) | [3] | (379,885) | [4] | (384,508) | [5] |
General and administrative | (93,599) | [3] | (113,136) | [4] | (103,225) | [5] | |
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | (7,245) | (16,369) | (86,882) | ||||
SBC in operating expenses | [2] | (17,635) | (2,165) | (45,278) | |||
Total operating expenses | (862,972) | (946,584) | (1,008,519) | ||||
Operating profit /(loss) | 380 | (116,243) | (189,198) | ||||
Other income /(expense) | 21,948 | 64,724 | 6,697 | ||||
Interest income | 10,546 | 24,074 | 24,138 | ||||
Interest expense | (14,370) | (17,538) | (4,088) | ||||
Exchange difference | 3,279 | 9,026 | (14,385) | ||||
Income /(loss) before income tax benefit /(expense) | 21,783 | (35,957) | (176,836) | ||||
Income tax benefit /(expense) | (31,176) | 13,433 | (272,636) | ||||
Net loss from continuing operations | (9,393) | (22,524) | (449,472) | ||||
Net loss from discontinued operations | (33,998) | (44,835) | (20,531) | ||||
Net loss | (43,391) | (67,359) | (470,003) | ||||
Sohu [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 218,226 | 274,223 | 372,774 | ||||
Sogou [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 1,171,841 | 1,123,045 | 908,006 | ||||
Changyou [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 455,380 | $ 415,559 | $ 488,809 | ||||
[1] | The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou, and Changyou segments. | ||||||
[2] | "SBC" stands for share-based compensation expense. | ||||||
[3] | The elimination mainly consists of the distribution by Changyou of a dividend to Sohu in 2019 and leasing income and expenses generated from a building that Sohu leases to Sogou. | ||||||
[4] | The elimination mainly consists of the distribution by Changyou of a dividend to Sohu in 2018 and leasing income and expenses generated from a building that Sohu leases to Sogou. | ||||||
[5] | The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. | ||||||
[6] | The elimination represents interest income/ (expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. |
Segment Information (Segment As
Segment Information (Segment Assets Information by Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Segments [Member] | Sohu [Member] | |||
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | $ 68,229 | $ 180,005 | |
Account and financing receivables, net | 70,252 | 78,383 | |
Fixed assets, net | 177,978 | 186,756 | |
Total assets | [1] | 1,721,801 | 1,319,490 |
Operating Segments [Member] | Sogou [Member] | |||
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | 142,464 | 185,175 | |
Account and financing receivables, net | 134,635 | 145,401 | |
Fixed assets, net | 110,006 | 147,495 | |
Total assets | [1] | 1,522,402 | 1,462,844 |
Operating Segments [Member] | Changyou [Member] | |||
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | 94,433 | 454,305 | |
Account and financing receivables, net | 55,829 | 40,627 | |
Fixed assets, net | 159,713 | 170,396 | |
Total assets | [1] | 1,871,685 | 2,037,803 |
Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Account and financing receivables, net | 0 | 0 | |
Fixed assets, net | (9) | 0 | |
Total assets | [1] | (2,426,098) | (1,449,290) |
Cash and cash equivalents | 305,126 | 819,485 | |
Account and financing receivables, net | 260,716 | 264,411 | |
Fixed assets, net | 447,688 | 504,647 | |
Total assets | $ 2,689,790 | $ 3,370,847 | |
[1] | The elimination for segment assets mainly consists of elimination of intra-Group loans between Sohu and Changyou, and elimination of long-term investments in subsidiaries and consolidated VIEs. |
Share-based Compensation Expe_3
Share-based Compensation Expense (Share-based Compensation Expense Recognized in Costs and Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 18,251 | $ 2,095 | $ 45,477 |
Cost of revenues [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 615 | (69) | 198 |
Product development expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 12,063 | 6,131 | 23,547 |
Sales and marketing expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 3,398 | 405 | 5,915 |
General and administrative expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 2,175 | $ (4,372) | $ 15,817 |
Share-based Compensation Expe_4
Share-based Compensation Expense (Share-based Compensation Expense Recognized for Share Awards of Sohu (excluding Sohu Video), Sogou, Changyou and Sohu Video) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 18,251,000 | $ 2,095,000 | $ 45,477,000 | |
Capitalized share-based compensation expense | 0 | 0 | 0 | |
Sohu (excluding Sohu Video) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 1,940,000 | (5,100,000) | 652,000 | |
Sogou [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | [1] | 15,901,000 | 14,204,000 | 27,729,000 |
Changyou [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 1,305,000 | (6,461,000) | 17,394,000 | |
Sohu Video [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ (895,000) | $ (548,000) | $ (298,000) | |
[1] | For the years ended December 31, 2017 and 2018, compensation expense for Sogou share-based awards also included compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search and search-related businesses. All of such restricted share units vested before January 1, 2019. |
Advertising and Promotional E_2
Advertising and Promotional Expenses, included in Sales and Marketing Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
ADVERTISING AND PROMOTIONAL EXPENSES, INCLUDED IN SALES AND MARKETING EXPENSES [Abstract] | |||
Advertising and promotional expenses | $ 211.1 | $ 238.7 | $ 248.9 |
Other Income _(Expense), net (D
Other Income /(Expense), net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
OTHER INCOME /(EXPENSE), NET [Abstract] | ||||
Gain from the changes in fair value of financial instruments | [1] | $ 41,014 | $ 40,054 | $ 6,665 |
Government grant | 6,386 | 5,428 | 2,160 | |
Investment income/(expense) | [2] | 3,004 | 14,565 | (2,051) |
Donations | (754) | (70) | (218) | |
Write-off of unpaid long-term accounts payable | 0 | 0 | 2,031 | |
Impairment loss on available-for-sale equity securities | [3] | 0 | 0 | (5,754) |
Impairment loss on equity investments | [4] | (34,119) | (2,605) | 0 |
Others | 6,417 | 7,352 | 3,864 | |
Total | $ 21,948 | $ 64,724 | $ 6,697 | |
[1] | The increase for 2018 compared to 2017 mainly consisted of $33.4 million in income earned from investments in financial instruments. | |||
[2] | The increase for 2018 compared to 2017 mainly consisted of $17.8 million in investment income recognized in the third quarter of 2018 by Sogou due to the observable change in the price of Zhihu Technology Limited ("Zhihu") after the adoption of ASU 2016-01, offset by a $3.6 million investment loss representing a change in the fair value of Hylink Digital Solution Co., Ltd ("Hylink"). | |||
[3] | Before the adoption of ASU 2016-01, the Group recognized an other than temporary impairment loss of $5.8 million in the third quarter of 2017 that was related to Keyeast Co., Ltd. ("Keyeast"), an investment measured as available-for-sale equity securities. | |||
[4] | In the fourth quarter of 2019, the Sohu Group recognized impairment losses of $34.1 million for equity investments. |
Other Income _(Expense), net (N
Other Income /(Expense), net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Other Income and Expense [Line Items] | |||||||
Income earned from investment in financial instruments | $ 33,400 | ||||||
Investment income/(expense) | [1] | $ 3,004 | 14,565 | $ (2,051) | |||
Impairment loss | $ 34,100 | $ 34,119 | 2,605 | $ 5,754 | |||
Keyeast [Member] | |||||||
Other Income and Expense [Line Items] | |||||||
Impairment loss | $ 5,800 | ||||||
Sogou [Member] | Accounting Standards Update 2016-01 [Member] | Zhihu Technology Limited ("Zhihu") [Member] | |||||||
Other Income and Expense [Line Items] | |||||||
Investment income/(expense) | $ 17,800 | ||||||
Sogou [Member] | Accounting Standards Update 2016-01 [Member] | Hylink Digital Solution Co., Ltd ("Hylink") [Member] | |||||||
Other Income and Expense [Line Items] | |||||||
Investment income/(expense) | $ (3,600) | ||||||
[1] | The increase for 2018 compared to 2017 mainly consisted of $17.8 million in investment income recognized in the third quarter of 2018 by Sogou due to the observable change in the price of Zhihu Technology Limited ("Zhihu") after the adoption of ASU 2016-01, offset by a $3.6 million investment loss representing a change in the fair value of Hylink Digital Solution Co., Ltd ("Hylink"). |
Balance Sheet Components Accoun
Balance Sheet Components Account and Financing Receivanles, net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Account and financing receivables, net | ||||
Accounts receivable | $ 210,069 | $ 233,258 | ||
Financing receivables | 66,858 | 46,238 | ||
Allowance for doubtful accounts and credit losses | (16,211) | (15,085) | $ (4,871) | $ (4,274) |
Accounts receivable, net | $ 260,716 | $ 264,411 |
Balance Sheet Components Moveme
Balance Sheet Components Movement of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
BALANCE SHEET COMPONENTS [Abstract] | |||
Balance at the beginning of year | $ 15,085 | $ 4,871 | $ 4,274 |
Additional provision for bad debt, net of recoveries | 20,344 | 14,568 | 8,891 |
Write-offs | (19,978) | (3,848) | (8,634) |
Exchange difference | 760 | (506) | 340 |
Balance at the end of year | $ 16,211 | $ 15,085 | $ 4,871 |
Balance Sheet Components Other
Balance Sheet Components Other Assests and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Prepaid and other current assets | |||
Matching loan due from a related party | $ 33,329 | $ 31,607 | |
Prepaid taxes | 30,068 | 29,452 | |
Receivables from third party payment service providers | 14,221 | 14,012 | |
Prepaid content and license | 13,330 | 30,033 | |
Prepaid cost of revenue | 8,343 | 3,568 | |
Inventory | 4,186 | 12,657 | |
Receivables from third party payment platforms | 3,435 | 8,844 | |
Prepaid rental deposit | 3,113 | 4,978 | |
Interest receivable from bank deposits with original maturities of three months or less | 2,264 | 3,645 | |
Employee advances | 1,693 | 2,259 | |
Prepaid office rent and facilities expenses | 735 | 2,886 | |
Due from discontinued associated company | [1] | 0 | 72,337 |
Others | 9,615 | 9,466 | |
Prepaid and other current assets | 124,332 | 225,744 | |
Prepaid non-current assets | |||
Prepaid PRC income tax for the sale of assets associated with 17173.com by Sohu to Changyou | 1,882 | 2,870 | |
Others | 0 | 237 | |
Prepaid non-current assets | 1,882 | 3,107 | |
Other short-term liabilities | |||
Contract deposits from advertisers | 34,459 | 40,073 | |
Matching loans due to a related party | 33,536 | 32,719 | |
Contingent liability related to Jingmao liquidation | [2] | 23,900 | 0 |
Deposits related to Focus | 19,101 | 21,648 | |
Lease liabilities | 8,616 | 0 | |
Payable to a third-party investor in the Consolidated Trust | 8,601 | 0 | |
Depository payable reimbursement | 3,697 | 4,985 | |
Early exercise of Sogou share options for trust arrangements | 2,702 | 2,702 | |
Accrued liabilities to suppliers | 2,209 | 3,288 | |
Consideration payable for equity investment | 740 | 5,960 | |
Others | 11,750 | 12,546 | |
Other short-term liabilities | 149,311 | 123,921 | |
Receipts in advance and deferred revenue | |||
Receipts in advance relating to brand advertising business | 7,097 | 10,069 | |
Receipts in advance relating to search and search-related business | 67,756 | 65,465 | |
Receipts in advance relating to online game business | 5,524 | 14,635 | |
Receipts in advance relating to other business | 6,490 | 3,602 | |
Total receipts in advance | 86,867 | 93,771 | |
Deferred revenue | 31,355 | 26,633 | |
Receipts in advance and deferred revenue | 118,222 | $ 120,404 | |
Changyou [Member] | |||
Receipts in advance and deferred revenue | |||
Receivable of Changyou due from discontinued associated company | 72,319 | ||
Estimated allowance of Changyou for receivable | $ 72,319 | ||
[1] | As of December 31, 2018, Changyou had a receivable of $72,319 due from a discontinued associated company. In 2019, Changyou estimated an allowance of $72,319 for the receivable, which potentially might not be collected upon the liquidation of the discontinued associated company. Changyou will continually assess the allowance based on developments in bankruptcy proceedings with respect to the discontinued company in a Chinese court. | ||
[2] | The contingent liability represents the aggregate of estimated potential payments to third parties in connection with the liquidation of Shanghai Jingmao. The stated amount of the contingent liability reflects Changyou's best estimate as of December 31, 2019 pursuant to ASC 450-20. Changyou may revise this estimate in the future based on developments in PRC bankruptcy court proceedings regarding Shanghai Jingmao. |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Feb. 28, 2016USD ($) | Apr. 30, 2015USD ($) | Aug. 31, 2014USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 31, 2019USD ($) | Jan. 31, 2019CNY (Â¥) | |
Related Party Transaction [Line Items] | ||||||||
Interest expense incurred | $ 818 | $ 519 | $ 724 | |||||
Interest income earned | 1,015 | 1,051 | $ 1,157 | |||||
Changyou [Member] | Fox Financial Technology Group Limited [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Principal Amount of Advanced Additional Loan | $ 1,200 | ¥ 8.2 | ||||||
Loans payable to related parities | 33,500 | 32,700 | ||||||
Loans receivable from related parities | 33,300 | 31,600 | ||||||
Interest expense incurred | 800 | 500 | ||||||
Interest income earned | $ 1,000 | $ 1,100 | ||||||
Sohu [Member] | Fox Financial Technology Group Limited [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Investment amount in period | $ 10,500 | $ 16,100 | $ 4,800 |
Intra-Group Loan and Share Pl_2
Intra-Group Loan and Share Pledge Agreement (Details) ¥ in Millions, $ in Millions | Oct. 24, 2016USD ($) | Oct. 24, 2016CNY (¥) | Apr. 30, 2017USD ($) | Apr. 30, 2017CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2019USD ($)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) |
Sohu Media [Member] | AmazGame [Member] | Loan Agreement [Member] | ||||||||||||||
Intracompany Loan and Share Pledge Agreement [Line Items] | ||||||||||||||
Maximum amount of loan Sohu Media can borrow from AmazGame | $ 148.6 | ¥ 1,000 | ||||||||||||
Annual interest rate | 6.00% | 6.00% | ||||||||||||
Loans received from related parties | $ 45.9 | ¥ 300 | $ 30.6 | ¥ 200 | $ 72.1 | ¥ 500 | ||||||||
Total outstanding balance of loan received from related parties | $ 153 | ¥ 1,000 | ||||||||||||
Sohu Game [Member] | Changyou [Member] | Share Pledge Agreement [Member] | Class B Ordinary Shares [Member] | ||||||||||||||
Intracompany Loan and Share Pledge Agreement [Line Items] | ||||||||||||||
Shares pledged | 43,823,946 | 43,823,946 | ||||||||||||
Video Tianjin [Member] | AmazGame [Member] | Supplementary Agreement [Member] | ||||||||||||||
Intracompany Loan and Share Pledge Agreement [Line Items] | ||||||||||||||
Total outstanding balance of loan received from related parties | $ 143.3 | ¥ 1,000 | $ 145.7 | ¥ 1,000 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments, Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 219,977 | $ 595,703 |
Short-term investments | 1,316,833 | 1,041,395 |
Restricted time deposit | 240 | 244,179 |
Equity investments with readily determinable fair values | 9,320 | 6,790 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Restricted time deposit | 0 | 0 |
Equity investments with readily determinable fair values | 9,320 | 6,790 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 219,977 | 595,703 |
Short-term investments | 1,316,833 | 1,041,395 |
Restricted time deposit | 240 | 244,179 |
Equity investments with readily determinable fair values | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Restricted time deposit | 0 | 0 |
Equity investments with readily determinable fair values | $ 0 | $ 0 |
Fair Value Measurements (Short-
Fair Value Measurements (Short-term Investments, Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in financial instruments | $ 1,316,833 | $ 1,041,395 |
Change in fair value of short-term investments | $ 41,000 | $ 40,100 |
Fair Value Measurements (Foreig
Fair Value Measurements (Foreign Exchange Forward Contracts, Narrative) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 31, 2017 | Sep. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash outflows under forward contracts | $ 0 | $ 900,000 | |||
Foreign exchange forward contracts recognized in other short-term liabilities | $ 0 | $ 0 | |||
Changyou [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Aggregate notional amount of foreign exchange forward contracts | $ 50,000,000 | $ 100,000,000 | |||
Realized loss on settlement of foreign exchange forward contracts | $ (200,000) |
Fair Value Measurements (Restri
Fair Value Measurements (Restricted Time Deposits, Narrative) (Details) - Fair Value, Measurements, Recurring [Member] - Changyou [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest income from restricted time deposits | $ 0.5 | $ 1 |
Interest expense on bank loans | $ 2.1 | $ 1.4 |
Fair Value Measurements (Equity
Fair Value Measurements (Equity Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment loss | $ 34,100 | $ 34,119 | $ 2,605 | $ 5,754 |
Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment loss | $ 34,100 | $ 2,600 | $ 5,800 |
Fair Value Measurements (Shor_2
Fair Value Measurements (Short-term Receivables and Payables, Narrative) (Details) | 1 Months Ended | 2 Months Ended | |||||||||||||||
Jun. 30, 2018USD ($) | Jun. 30, 2018CNY (Â¥) | Apr. 30, 2018USD ($) | Apr. 30, 2018CNY (Â¥) | Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (Â¥) | Jul. 31, 2017USD ($) | Jul. 31, 2017CNY (Â¥) | May 31, 2017USD ($) | May 31, 2017CNY (Â¥) | May 31, 2019USD ($) | May 31, 2019CNY (Â¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (Â¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (Â¥) | May 31, 2017CNY (Â¥) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||
Short-term bank loans | $ 114,528,000 | $ 129,677,000 | |||||||||||||||
Sohu [Member] | Factoring contract with recourse with HSBC [Member] | Fair Value, Measurements, Recurring [Member] | HSBC [Member] | |||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||
Loans may borrow from bank | $ 26,200,000 | ¥ 180,000,000 | |||||||||||||||
Accounts receivable to secure short-term bank loan | 28,800,000 | ¥ 198,000,000 | |||||||||||||||
Total outstanding balance of bank loan | 0 | ¥ 0 | 0 | ¥ 0 | |||||||||||||
Sohu [Member] | Credit agreements with Ping An Bank [Member] | Fair Value, Measurements, Recurring [Member] | Ping An Bank [Member] | |||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||
Loans may borrow from bank | $ 87,400,000 | ¥ 600,000,000 | $ 364,300,000 | ¥ 2,500,000,000 | |||||||||||||
Times over reference interest rate | 115.00% | 115.00% | |||||||||||||||
Loan received from bank | $ 58,300,000 | ¥ 400,000,000 | |||||||||||||||
Short-term loan, interest rate | 6.525% | 6.525% | |||||||||||||||
Additional interest rate over LPR | 150.00% | 150.00% | |||||||||||||||
Total outstanding balance of bank loan | 0 | 0 | 0 | 0 | |||||||||||||
Sohu [Member] | Credit agreement with ICBC [Member] | Fair Value, Measurements, Recurring [Member] | ICBC [Member] | |||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||
Loans may borrow from bank | $ 116,600,000 | ¥ 800,000,000 | |||||||||||||||
Short-term bank loans | 57,200,000 | 399,000,000 | |||||||||||||||
Additional interest rate over LPR | 1.20% | 1.20% | |||||||||||||||
Installments of bank loan payable | Four equal installments, with the first installment payable 18 months after the drawdown and the other three installments payable semi-annually at the end of each of the three successive six-month periods after the first installment payment | Four equal installments, with the first installment payable 18 months after the drawdown and the other three installments payable semi-annually at the end of each of the three successive six-month periods after the first installment payment | |||||||||||||||
Total outstanding balance of bank loan | 57,300,000 | 400,000,000 | 116,600,000 | 800,000,000 | |||||||||||||
Sohu [Member] | Credit agreement with CMB [Member] | Fair Value, Measurements, Recurring [Member] | CMB [Member] | |||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||
Loans may borrow from bank | $ 102,000,000 | ¥ 700,000,000 | |||||||||||||||
Short-term bank loans | 57,200,000 | 399,000,000 | |||||||||||||||
Loan received from bank | $ 43,700,000 | ¥ 300,000,000 | $ 58,300,000 | ¥ 400,000,000 | $ 59,300,000 | ¥ 399,000,000 | |||||||||||
Short-term loan, interest rate | 6.00% | 6.00% | 6.00% | 6.00% | 5.10% | 5.10% | |||||||||||
Installments of bank loan payable | Four installments, with the first installment of RMB45 million (or $6.7 million) having been paid in December 2018; the second and third installments of RMB90 million (or $13.1 million) in the aggregate were paid early in June 2019; and the fourth installment of RMB165 million (or $23.3million) was paid early in July 2019 | Four installments, with the first installment of RMB45 million (or $6.7 million) having been paid in December 2018; the second and third installments of RMB90 million (or $13.1 million) in the aggregate were paid early in June 2019; and the fourth installment of RMB165 million (or $23.3million) was paid early in July 2019 | |||||||||||||||
Total outstanding balance of bank loan | $ 57,200,000 | ¥ 399,000,000 | $ 95,400,000 | ¥ 655,000,000 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Purchased video content recorded in prepaid and other assets | $ 3,115 | $ 5,504 |
Intangible assets, net | 11,437 | 24,071 |
Goodwill | 52,923 | 53,263 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Purchased video content recorded in prepaid and other assets | 0 | 0 |
Intangible assets, net | 0 | 0 |
Goodwill | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Purchased video content recorded in prepaid and other assets | 0 | 0 |
Intangible assets, net | 0 | 0 |
Goodwill | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Purchased video content recorded in prepaid and other assets | 3,115 | 5,504 |
Intangible assets, net | 11,437 | 24,071 |
Goodwill | $ 52,923 | $ 53,263 |
Lease (Component of Operating L
Lease (Component of Operating Lease Expense) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 12,623 |
Short-term lease expense | 263 |
Total operating lease expense | $ 12,886 |
Lease (Supplemental Cash Flow I
Lease (Supplemental Cash Flow Information Related to Leases, Cash Paid for Amounts Included in Measurement of Lease Liabilities) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 12,164 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Related to Leases, Right-of-use Assets Obtained in Exchange for Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating leases | $ 11,332 |
Lease (Supplemental Balance She
Lease (Supplemental Balance Sheet Information Related to Operating Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 16,656 | |
Liabilities: | ||
Current lease liabilities | 8,616 | $ 0 |
Non-current lease liabilities | 5,770 | |
Total operating lease liabilities | $ 14,386 |
Lease (Maturities of Lease Liab
Lease (Maturities of Lease Liabilities under Operating Leases) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 8,969 |
2021 | 5,380 |
2022 | 972 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total future lease payments | 15,321 |
Less: imputed interest | 935 |
Total present value of lease liabilities | $ 14,386 |
Weighted average remaining lease term | 2 years |
Weighted average discount rate | 4.90% |
Lease (Future Minimum Rental Pa
Lease (Future Minimum Rental Payments under Operating Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Leases [Abstract] | |||
2019 | $ 12,367 | ||
2020 | 10,311 | ||
2021 | 6,032 | ||
2022 | 809 | ||
2023 | 270 | ||
Thereafter | 0 | ||
Total minimum lease payments | [1] | 29,789 | |
Rent expense under operating leases | $ 14,700 | $ 17,200 | |
[1] | Amounts are based on ASC 840, which was superseded upon the Group's adoption of ASC 842 on January 1, 2019. Rental expenses under operating leases were $17.2 million and $14.7 million for the years ended December 31, 2017, and 2018, respectively. |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | $ 841,166 | $ 851,865 | |
Accumulated depreciation | (393,478) | (347,218) | |
Fixed assets, net | 447,688 | 504,647 | |
Depreciation expenses for fixed assets | 92,888 | 92,799 | $ 82,893 |
Office buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 366,686 | 372,723 | |
Computer equipment and hardware [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 414,532 | 418,198 | |
Leasehold and building improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 47,262 | 48,364 | |
Office furniture [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 9,091 | 8,768 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | $ 3,595 | $ 3,812 |
Goodwill (Carrying Value of Goo
Goodwill (Carrying Value of Goodwill by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 255,795 | $ 261,270 |
Accumulated impairment losses, Beginning Balance | (202,532) | (189,705) |
Goodwill, Net, Beginning Balance | 53,263 | 71,565 |
Transactions in Period [Abstract] | ||
Foreign currency translation adjustment | (340) | (1,933) |
Impairment losses | 0 | (16,369) |
Goodwill, Ending balance | 255,455 | 255,795 |
Accumulated impairment losses, Ending balance | (202,532) | (202,532) |
Goodwill, Net, Ending balance | 52,923 | 53,263 |
Operating Segments [Member] | Sohu [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 69,627 | 73,941 |
Accumulated impairment losses, Beginning Balance | (32,246) | (35,788) |
Goodwill, Net, Beginning Balance | 37,381 | 38,153 |
Transactions in Period [Abstract] | ||
Foreign currency translation adjustment | (249) | (772) |
Impairment losses | 0 | 0 |
Goodwill, Ending balance | 69,378 | 69,627 |
Accumulated impairment losses, Ending balance | (32,246) | (32,246) |
Goodwill, Net, Ending balance | 37,132 | 37,381 |
Operating Segments [Member] | Sogou [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 5,625 | 5,908 |
Accumulated impairment losses, Beginning Balance | 0 | 0 |
Goodwill, Net, Beginning Balance | 5,625 | 5,908 |
Transactions in Period [Abstract] | ||
Foreign currency translation adjustment | (91) | (283) |
Impairment losses | 0 | 0 |
Goodwill, Ending balance | 5,534 | 5,625 |
Accumulated impairment losses, Ending balance | 0 | 0 |
Goodwill, Net, Ending balance | 5,534 | 5,625 |
Operating Segments [Member] | Changyou [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 180,543 | 181,421 |
Accumulated impairment losses, Beginning Balance | (170,286) | (153,917) |
Goodwill, Net, Beginning Balance | 10,257 | 27,504 |
Transactions in Period [Abstract] | ||
Foreign currency translation adjustment | 0 | (878) |
Impairment losses | 0 | (16,369) |
Goodwill, Ending balance | 180,543 | 180,543 |
Accumulated impairment losses, Ending balance | (170,286) | (170,286) |
Goodwill, Net, Ending balance | $ 10,257 | $ 10,257 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)ReportingUnits | Dec. 31, 2018USD ($) | |
Goodwill [Line Items] | |||
Goodwill impairment losses | $ | $ 0 | $ 16,369 | |
Sohu [Member] | |||
Goodwill [Line Items] | |||
Number of reporting units | ReportingUnits | 1 | ||
Sogou [Member] | |||
Goodwill [Line Items] | |||
Number of reporting units | ReportingUnits | 1 | ||
Changyou [Member] | 17173.com Website [Member] | |||
Goodwill [Line Items] | |||
Goodwill impairment losses | $ | $ 16,400 |
Intangible Assets, Net (Finite-
Intangible Assets, Net (Finite-lived Intangible Assets by Major Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 323,528 | $ 282,191 |
Accumulated Amortization | (238,443) | (209,143) |
Impairment | (73,648) | (48,977) |
Net Carrying Amount | 11,437 | 24,071 |
Purchased Video content [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 217,610 | 177,307 |
Accumulated Amortization | (179,167) | (156,198) |
Impairment | (35,940) | (18,556) |
Net Carrying Amount | 2,503 | 2,553 |
Operating rights for licensed games [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 47,226 | 46,237 |
Accumulated Amortization | (27,992) | (22,239) |
Impairment | (12,365) | (11,776) |
Net Carrying Amount | 6,869 | 12,222 |
Domain names and trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 27,644 | 28,054 |
Accumulated Amortization | (11,210) | (11,124) |
Impairment | (16,176) | (9,341) |
Net Carrying Amount | 258 | 7,589 |
Computer software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,231 | 15,550 |
Accumulated Amortization | (14,515) | (13,948) |
Impairment | 0 | 0 |
Net Carrying Amount | 1,716 | 1,602 |
Developed technologies [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,773 | 8,902 |
Accumulated Amortization | (1,441) | (1,463) |
Impairment | (7,332) | (7,439) |
Net Carrying Amount | 0 | 0 |
Others [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,044 | 6,141 |
Accumulated Amortization | (4,118) | (4,171) |
Impairment | (1,835) | (1,865) |
Net Carrying Amount | $ 91 | $ 105 |
Intangible Assets, Net (Narrati
Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 39.5 | $ 59.3 | $ 140.2 |
Sohu [Member] | 56.com Website's intangible assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total losses for impairment | 7.2 | ||
Sohu [Member] | Sohu Video's intangible assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total losses for impairment | $ 4 | 10.4 | 70.6 |
Intangible assets impairment losses | 9.8 | 43.1 | |
Prepaid and other current assets impairment losses | $ 0.6 | 27.5 | |
Changyou [Member] | MoboTap's intangible assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets impairment losses | $ 3.4 |
Intangible Assets, Net (Estimat
Intangible Assets, Net (Estimated Amortization Expenses for Future Periods) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
INTANGIBLE ASSETS, NET [Abstract] | ||
2020 | $ 7,042 | |
2021 | 3,414 | |
2022 | 515 | |
2023 | 300 | |
2024 | 99 | |
Thereafter | 67 | |
Total expected amortization expense | $ 11,437 | $ 24,071 |
Taxation (PRC Corporate Income
Taxation (PRC Corporate Income Tax) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax and Tax Rate [Line Items] | |||
Statutory income tax rate | 25.00% | 25.00% | 35.00% |
State Administration of Taxation, China [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Statutory income tax rate | 25.00% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15.00% | ||
Preferential income tax rate period (years) | 3 years | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Sohu New Momentum [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15.00% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Sohu Internet [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15.00% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Video Tianjin [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15.00% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Sohu Media [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15.00% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Sogou Network [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15.00% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Sogou Information [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15.00% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Sogou Technology [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15.00% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Gamespace [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15.00% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Changyou Chuangxiang [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15.00% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | Gamease [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15.00% | ||
State Administration of Taxation, China [Member] | High and New Technology Enterprises [Member] | AmazGame [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 15.00% | ||
State Administration of Taxation, China [Member] | Software Enterprise [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 12.50% | ||
Preferential income tax rate period (years) | 3 years | ||
Income tax exemption period beginning with first profitable year | 2 years | ||
Tax rate reduction rate | 50.00% | ||
State Administration of Taxation, China [Member] | Software Enterprise [Member] | Changyou Chuangxiang [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Income tax exemption period beginning with first profitable year | 2 years | ||
State Administration of Taxation, China [Member] | Key National Software Enterprise [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 10.00% | ||
State Administration of Taxation, China [Member] | Key National Software Enterprise [Member] | AmazGame [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Preferential income tax rate | 10.00% |
Taxation (U.S. Corporate Income
Taxation (U.S. Corporate Income Tax) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax and Tax Rate [Line Items] | |||
Statutory income tax rate | 25.00% | 25.00% | 35.00% |
Prior tax years [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Statutory income tax rate | 35.00% | ||
Thereafter tax years [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Statutory income tax rate | 21.00% |
Taxation (Treatment of Toll Cha
Taxation (Treatment of Toll Charge Related to the U.S. TCJA) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Dec. 31, 2018 | |
TAXATION [Abstract] | ||
Provisional amount of income tax expense recognized for the Toll Charge | $ 219 | |
Reduction in liability for deferred income tax | 4 | |
Unrecognized tax benefit recorded | $ 142 | |
Interest in connection with unrecognized tax benefit | $ 8 | $ 2 |
Taxation (Hong Kong Tax) (Detai
Taxation (Hong Kong Tax) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax and Tax Rate [Line Items] | |||
Statutory income tax rate | 25.00% | 25.00% | 35.00% |
Inland Revenue, Hong Kong [Member] | |||
Income Tax and Tax Rate [Line Items] | |||
Statutory income tax rate | 16.50% | 16.50% | 16.50% |
Taxation (Components of Income
Taxation (Components of Income before Income Taxes) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income /(loss) before income tax expense | |||||
Income /(loss) from China operations | $ (4,390) | $ (2,865) | $ (55,874) | ||
Income /(loss) from non-China operations | 26,173 | (33,092) | (120,962) | ||
Total income /(loss) before income tax expense | 21,783 | (35,957) | (176,836) | ||
Income tax expense applicable to China operations | |||||
Current tax | 14,510 | 15,040 | 56,938 | ||
Deferred tax | 8,455 | 49,598 | 343 | ||
Subtotal income tax expense applicable to China operations | 22,965 | 64,638 | 57,281 | ||
Non China income tax expense/(benefit) | 7,887 | (78,540) | 214,737 | ||
Non China withholding tax expense | 324 | 469 | 618 | ||
Total income tax expense | 31,176 | (13,433) | 272,636 | ||
Unrecognized tax benefit recorded | 142,000 | ||||
Interest in connection with unrecognized tax benefit | $ 8,000 | 2,000 | 8,000 | ||
Provisional amount of income tax expense recognized for the Toll Charge | 219,000 | ||||
Reduction in liability for deferred income tax | $ 4,000 | ||||
CHINA | |||||
Income tax expense applicable to China operations | |||||
Total income tax expense | 23,000 | 55,900 | |||
Accrued Income Taxes | 41,500 | ||||
Reversal of Accrued Income Taxes | 19,500 | ||||
United States | |||||
Income tax expense applicable to China operations | |||||
Total income tax expense | $ 214,700 | ||||
Recognition of previously unrecognized tax benefit | $ 77,000 | ||||
Interest in connection with unrecognized tax benefit | $ 8,000 | ||||
Provisional amount of income tax expense recognized for the Toll Charge | $ 219,000 | ||||
Reduction in liability for deferred income tax | $ 4,000 |
Taxation (Tax Holiday Effect) (
Taxation (Tax Holiday Effect) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
TAXATION [Abstract] | |||
Tax holiday effect | $ 10,110 | $ 28,385 | $ 17,736 |
Basic net income per share effect | $ 0.26 | $ 0.73 | $ 0.46 |
Taxation (Effective Tax Rate) (
Taxation (Effective Tax Rate) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 05, 2018 | ||
Taxation [Line Items] | ||||||
Statutory Rate: | 25.00% | 25.00% | 35.00% | |||
Effect of tax holidays applicable to subsidiaries and consolidated VIEs | [1] | (46.00%) | 79.00% | 10.00% | ||
Tax differential from statutory rate applicable to the subsidiaries and the consolidated VIEs | (12.00%) | (6.00%) | (14.00%) | |||
Effect of withholding taxes | [2] | 40.00% | (147.00%) | (2.00%) | ||
Changes in valuation allowance for deferred tax assets | 260.00% | (128.00%) | (56.00%) | |||
Research and development super-deduction | (142.00%) | 66.00% | 9.00% | |||
Others | (17.00%) | (55.00%) | (13.00%) | |||
Effective Tax Rate | 108.00% | (166.00%) | (31.00%) | |||
Additional withholding income taxes | $ 47 | |||||
Special cash dividend | $ 500 | |||||
Thereafter tax years [Member] | ||||||
Taxation [Line Items] | ||||||
Statutory Rate: | 21.00% | |||||
Prior tax years [Member] | ||||||
Taxation [Line Items] | ||||||
Statutory Rate: | 35.00% | |||||
[1] | The reversal of income tax for preferential income tax rates that Changyou's and Sogou's subsidiaries and VIEs were entitled to as KNSEs or Software Enterprises for 2017, 2018 and 2019 was included in the "Effect of tax holidays applicable to subsidiaries and consolidated VIEs" in the above table. | |||||
[2] | The change was mainly due to additional income withholding tax of $47 million that was recognized in the first quarter of 2018 due to a revised policy for Changyou's PRC subsidiaries with respect to their distribution of cash dividends. The revised policy was adopted to facilitate the distribution of a special cash dividend in the aggregate amount of approximately $500.0 million that was declared by Changyou's Board of Directors on April 5, 2018. |
Taxation (PRC Withholding Tax o
Taxation (PRC Withholding Tax on Dividends) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 05, 2018 | |
Withholding tax on dividends [Line Items] | ||||
Withholding income tax rate on dividends, foreign invested enterprises to foreign holding companies | 10.00% | |||
Special cash dividend | $ 500,000 | |||
Additional withholding income taxes | $ 47,000 | |||
Deferred tax liabilities related to withholding tax | $ 86,834 | $ 79,824 | ||
Total amount of undistributed profits | 743,900 | |||
Unrecognized tax liabilities | 74,400 | |||
Changyou [Member] | ||||
Withholding tax on dividends [Line Items] | ||||
Deferred tax liabilities related to withholding tax | $ (86,800) | |||
HONG KONG | ||||
Withholding tax on dividends [Line Items] | ||||
Preferential withholding tax rate on dividends, foreign invested enterprises | 5.00% |
Taxation (PRC Value-Added Tax)
Taxation (PRC Value-Added Tax) (Details) - State Administration of Taxation, China [Member] | 4 Months Ended | 9 Months Ended | 11 Months Ended | 12 Months Ended |
Apr. 30, 2018 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2017 | |
Minimum [Member] | ||||
Value added tax [Line Items] | ||||
Value-added tax rate | 6.00% | 6.00% | 6.00% | 6.00% |
Maximum [Member] | ||||
Value added tax [Line Items] | ||||
Value-added tax rate | 17.00% | 13.00% | 16.00% | 17.00% |
Taxation (Deferred Tax Assets a
Taxation (Deferred Tax Assets and Liabilities, Significant Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||||
Net operating loss from operations | $ 290,266 | $ 257,955 | ||
Accrued bonus and commissions | 25,457 | 26,704 | ||
Provision for inventory and doubtful receivables | 7,517 | 3,931 | ||
Intangible assets transfer | 916 | 1,524 | ||
Others | 18,132 | 9,250 | ||
Total deferred tax assets | 342,288 | 299,364 | ||
Less: Valuation allowance | (311,813) | (272,008) | $ (250,096) | $ (214,531) |
Net deferred tax assets | 30,475 | 27,356 | ||
Deferred tax liabilities | ||||
Withholding tax for Dividend | (86,834) | (79,824) | ||
Intangible assets from business acquisitions | 0 | (1,087) | ||
Others | (9,070) | (4,353) | ||
Total deferred tax liabilities | $ (95,904) | $ (85,264) |
Taxation (Deferred Tax Assets_2
Taxation (Deferred Tax Assets and Liabilities, Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
TAXATION [Abstract] | |
Net operating losses from PRC entities available to offset against future net profit for income tax purposes | $ 1,430 |
Deferred tax assets generated from net operating losses offset by valuation allowance | 283.4 |
PRC net operating losses generated from previous years, expired | $ 15.9 |
Taxation (Movement of Valuation
Taxation (Movement of Valuation Allowance for Net Deferred Tax Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
TAXATION [Abstract] | |||
Beiginning balance | $ 272,008 | $ 250,096 | $ 214,531 |
Provision for the year | 52,939 | 41,405 | 56,259 |
Reversal for the year | (8,650) | (7,726) | (33,392) |
Foreign currency translation adjustment | (4,484) | (11,767) | 12,698 |
Ending balance | $ 311,813 | $ 272,008 | $ 250,096 |
Taxation (Uncertain Tax Positio
Taxation (Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
TAXATION [Abstract] | |||
Beginning balance | $ 174,363 | $ 31,138 | $ 32,682 |
Increases /(decreases) related to prior year tax positions | 7,300 | (1,190) | (1,544) |
Increases related to current year tax positions | 0 | 144,415 | 0 |
Ending balance | $ 181,663 | 174,363 | 31,138 |
Unrecognized tax benefit recorded | 142,000 | ||
Interest in connection with unrecognized tax benefit | $ 2,000 | $ 8,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Contractual Obligation) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Contractual Obligation [Line Items] | |
2020 | $ 90,110 |
2021 | 3,698 |
2022 | 63 |
2023 | 18 |
2024 | 0 |
Thereafter | 0 |
Total Payments Required | 93,889 |
Purchase of bandwidth [Member] | |
Contractual Obligation [Line Items] | |
2020 | 50,405 |
2021 | 352 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total Payments Required | 50,757 |
Operating rights for licensed games and titles of games in development [Member] | |
Contractual Obligation [Line Items] | |
2020 | 12,806 |
2021 | 600 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total Payments Required | 13,406 |
Purchase of content and services -video [Member] | |
Contractual Obligation [Line Items] | |
2020 | 7,429 |
2021 | 2,013 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total Payments Required | 9,442 |
Purchase of content and services -others [Member] | |
Contractual Obligation [Line Items] | |
2020 | 5,526 |
2021 | 180 |
2022 | 53 |
2023 | 18 |
2024 | 0 |
Thereafter | 0 |
Total Payments Required | 5,777 |
Good Purchases [Member] | |
Contractual Obligation [Line Items] | |
2020 | 5,633 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total Payments Required | 5,633 |
Operating lease obligations [Member] | |
Contractual Obligation [Line Items] | |
2020 | 3,020 |
2021 | 93 |
2022 | 10 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total Payments Required | 3,123 |
Interest payment commitment [Member] | |
Contractual Obligation [Line Items] | |
2020 | 2,164 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total Payments Required | 2,164 |
Others [Member] | |
Contractual Obligation [Line Items] | |
2020 | 3,127 |
2021 | 460 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total Payments Required | $ 3,587 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) $ in Millions | Dec. 31, 2016USD ($)Institutions |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Estimated liabilities as component of accrued and other short-term liabilities | $ | $ 6.5 |
Putative class action lawsuits filed | Institutions | 2 |
VIEs (VIEs Consolidated within
VIEs (VIEs Consolidated within Sohu Group, Basic Information for Principal VIEs) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Oct. 31, 2016 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | ||
Aggregate amount of loans due from related parties | $ 7.7 | |
VIEs [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital and PRC statutory reserves | $ 83.5 | |
High Century [Member] | Dr. Charles Zhang [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 80.00% | |
High Century [Member] | Wei Li [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 20.00% | |
Heng Da Yi Tong [Member] | Dr. Charles Zhang [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 80.00% | |
Heng Da Yi Tong [Member] | Wei Li [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 20.00% | |
Sohu Internet [Member] | High Century [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Donglin [Member] | Sohu Internet [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Tianjin Jinhu [Member] | Ye Deng [Member] | ||
Variable Interest Entity [Line Items] | ||
Transferred equity interest to new shareholders | 50.00% | |
Tianjin Jinhu [Member] | Xiufeng Deng [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 50.00% | |
Tianjin Jinhu [Member] | Xuemei Zhang [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 50.00% | |
Focus Interactive [Member] | Heng Da Yi Tong [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Sogou Information [Member] | High Century [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 45.00% | |
Sogou Information [Member] | Xiaochuan Wang [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 10.00% | |
Sogou Information [Member] | Tencent Holdings Limited [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 45.00% | |
Chengdu Easypay [Member] | Sogou Information [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 9.00% | |
Chengdu Easypay [Member] | Shi Ji Si Su [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 91.00% | |
Gamease [Member] | High Century [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Shanghai ICE [Member] | Gamease [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Guanyou Gamespace [Member] | Changyou Star [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% |
VIEs (VIEs Consolidated withi_2
VIEs (VIEs Consolidated within Sohu Group, Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
ASSETS: | |||
Cash and cash equivalents | $ 305,126 | $ 819,485 | |
Restricted cash | 8,661 | 3,539 | |
Account and financing receivables, net | 260,716 | 264,411 | |
Prepaid and other current assets | 124,332 | 225,744 | |
Short-term investments | 1,316,833 | 1,041,395 | |
Total current assets | 2,015,668 | 2,388,898 | |
Long-term investments, net | 94,332 | 108,356 | |
Fixed assets, net | 447,688 | 504,647 | |
Intangible assets, net | 11,437 | 24,071 | |
Goodwill | 52,923 | 53,263 | $ 71,565 |
Other non-current assets | 65,620 | 43,928 | |
Total assets | 2,689,790 | 3,370,847 | |
LIABILITIES | |||
Accounts payable | 253,403 | 286,745 | |
Accrued liabilities | 249,810 | 292,282 | |
Receipts in advance and deferred revenue | 118,222 | 120,404 | |
Total current liabilities | 1,098,793 | 1,255,218 | |
Long-term tax liabilities | 181,640 | 174,339 | |
Deferred tax liabilities | 95,904 | 85,264 | |
Other long-term liabilities | 5,769 | 0 | |
Total liabilities | 1,382,873 | 1,817,896 | |
Net revenue | 1,845,447 | 1,812,827 | 1,769,589 |
Net income /(loss) | (43,391) | (67,359) | (470,003) |
Net cash provided by /(used in) operating activities | 210,590 | 84,025 | 187,687 |
Net cash used in investing activities | (443,220) | (459,244) | (714,503) |
Net cash provided by /(used in) financing activities | (513,163) | 96,334 | 801,975 |
Variable Interest Entity Primary Beneficiary [Member] | |||
ASSETS: | |||
Cash and cash equivalents | 52,744 | 65,864 | |
Restricted cash | 6,474 | 697 | |
Account and financing receivables, net | 140,300 | 122,884 | |
Prepaid and other current assets | 17,528 | 20,554 | |
Short-term investments | 7,192 | 7,305 | |
Intra-Group receivables due from the Company's subsidiaries | 420,103 | 390,157 | |
Total current assets | 644,341 | 607,461 | |
Long-term investments, net | 43,657 | 45,871 | |
Fixed assets, net | 1,400 | 1,793 | |
Intangible assets, net | 6,832 | 18,240 | |
Goodwill | 36,194 | 36,353 | |
Other non-current assets | 16,656 | 1,925 | |
Total assets | 749,080 | 711,643 | |
LIABILITIES | |||
Accounts payable | 74,781 | 84,749 | |
Accrued liabilities | 64,874 | 60,555 | |
Receipts in advance and deferred revenue | 47,735 | 43,020 | |
Other current liabilities | 80,859 | 86,851 | |
Intra-Group payables due to the Company's subsidiaries | 300,601 | 273,672 | |
Total current liabilities | 568,850 | 548,847 | |
Long-term tax liabilities | 13,220 | 13,554 | |
Deferred tax liabilities | 1,998 | 2,239 | |
Intra-Group payables due to the Company's subsidiaries | 18,599 | 18,897 | |
Other long-term liabilities | 1,130 | 0 | |
Total liabilities | 603,797 | 583,537 | |
Net revenue | 1,013,452 | 923,131 | 881,284 |
Net income /(loss) | 18,116 | (18,436) | 34,910 |
Net cash provided by /(used in) operating activities | (7,084) | 69,925 | (52,351) |
Net cash used in investing activities | (18,481) | (49,271) | (14,020) |
Net cash provided by /(used in) financing activities | $ 8,601 | $ 650 | $ (131) |
VIEs (VIEs Consolidated withi_3
VIEs (VIEs Consolidated within Sohu Group, Summary of Significant Agreements Currently in Effect) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Shareholders of Gamease [Member] | AmazGame [Member] | |
Variable Interest Entity [Line Items] | |
Power of attorney term | 10 years |
Percentage of exchange equity interests due to contributions to registered capital of equity | 100.00% |
Shareholders of Guanyou Gamespace [Member] | Gamespace [Member] | |
Variable Interest Entity [Line Items] | |
Power of attorney term | 10 years |
Percentage of exchange equity interests due to contributions to registered capital of equity | 100.00% |
VIEs [Member] | Shareholders of Tianjin Jinhu [Member] | Video Tianjin [Member] | |
Variable Interest Entity [Line Items] | |
Power of attorney term | 10 years |
VIEs [Member] | Shareholders of Sogou Information [Member] | Sogou Technology [Member] | |
Variable Interest Entity [Line Items] | |
Power of attorney term | 10 years |
Tianjin Jinhu Culture Development Co., Ltd ("Tianjin Jinhu") [Member] | Video Tianjin [Member] | |
Variable Interest Entity [Line Items] | |
Exclusive technology consulting and service agreement term | 10 years |
Tianjin Jinhu Culture Development Co., Ltd ("Tianjin Jinhu") [Member] | Shareholders of Tianjin Jinhu [Member] | Video Tianjin [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Beijing Sogou Information Service Co., Ltd.("Sogou Information") [Member] | Sogou Technology [Member] | |
Variable Interest Entity [Line Items] | |
Exclusive technology consulting and service agreement term | 10 years |
Beijing Sogou Information Service Co., Ltd.("Sogou Information") [Member] | Shareholders of Sogou Information [Member] | Sogou Technology [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Beijing Gamease Age Digital Technology Co., Ltd. ("Gamease") [Member] | Shareholders of Gamease [Member] | AmazGame [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Beijing Guanyou Gamespace Digital Technology Co., Ltd. ("Guanyou Gamespace") [Member] | Shareholders of Guanyou Gamespace [Member] | Gamespace [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Beijing Sohu Internet Information Service Co., Ltd. ("Sohu Internet") [Member] | Sohu Era [Member] | |
Variable Interest Entity [Line Items] | |
Exclusive technology consulting and service agreement term | 2 years |
Sohu.com Limited Shareholders_3
Sohu.com Limited Shareholders' Equity (Summary of Sohu.com Limited's Outstanding Shares) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance, beginning of year | 39,229 | ||
Balance, end of year | 39,269 | 39,229 | |
Sohu.com Limited [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance, beginning of year | 39,229 | 38,898 | 38,742 |
Issuance: | 40 | 331 | 156 |
Balance, end of year | 39,269 | 39,229 | 38,898 |
Sohu.com Limited Shareholders_4
Sohu.com Limited Shareholders' Equity (Sohu's 2018 Share Incentive Plan, Narrative) (Details) - Sohu.com Limited [Member] - shares | Jul. 02, 2010 | Dec. 31, 2019 | Apr. 02, 2018 |
Sohu 2010 Stock Incentive Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum term of share rights granted under share incentive plan | 10 years | ||
Sohu 2010 Stock Incentive Plan [Member] | Common Stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance | 1,500,000 | ||
Sohu 2018 Share Incentive Plan [Member] | Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Plan expiration date | Apr. 30, 2028 | ||
Shares available for grant | 189,405,000 | ||
Sohu 2018 Share Incentive Plan [Member] | Common Stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance | 1,148,565 |
Sohu.com Limited Shareholders_5
Sohu.com Limited Shareholders' Equity (Sohu's 2018 Share Incentive Plan, Share Option Activity, Narrative) (Details) - USD ($) | 12 Months Ended | ||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 31, 2019 | Feb. 28, 2019 | Nov. 30, 2017 | Sep. 30, 2017 | May 31, 2016 | Feb. 28, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ 18,251,000 | $ 2,095,000 | $ 41,468,000 | ||||||
Sohu.com Limited [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ 395,000 | (1,916,000) | (814,000) | ||||||
Sohu.com Limited [Member] | Sohu 2010 Stock Incentive Plan [Member] | Stock Options [Member] | Common Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares under contractually granted share options | 6,000 | 32,000 | 13,000 | 1,068,000 | |||||
Exercise prices of option granted | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Sohu.com Limited [Member] | Sohu 2018 Share Incentive Plan [Member] | Stock Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Installments of share options granted | Four equal installments | ||||||||
Award vesting period | 4 years | ||||||||
Number of options granted in period | 125,000 | ||||||||
Total fair value of stock options granted | $ 25,300,000 | ||||||||
Share-based compensation expense | 1,900,000 | (5,100,000) | 2,400,000 | ||||||
Total fair values of share options vested | 2,500,000 | 5,000,000 | 7,100,000 | ||||||
Total intrinsic value of share options exercised | $ 600,000 | $ 6,200,000 | $ 6,100,000 | ||||||
Sohu.com Limited [Member] | Sohu 2018 Share Incentive Plan [Member] | Stock Options [Member] | Common Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares under contractually granted share options | 477,500 | 20,000 | |||||||
Exercise prices of option granted | $ 0.001 | $ 0.001 | |||||||
Number of options granted in period | 703,625 | ||||||||
Number of share options vested | 703,625 |
Sohu.com Limited Shareholders_6
Sohu.com Limited Shareholders' Equity (Sohu's 2018 Share Incentive Plan, Share Option Activity) (Details) - Sohu.com Limited [Member] - Sohu 2018 Share Incentive Plan [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning balance | shares | 42 | |
Number of Shares, Outstanding, Ending balance | shares | ||
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares | $ 0.001 | |
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares | ||
Share Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Granted | shares | 125 | |
Number of Shares, Exercised | shares | (39) | |
Number of Shares, Forfeited or expired | shares | 0 | |
Number of Shares, Outstanding, Ending balance | shares | 128 | |
Number of Shares, Vested, Ending balance | shares | 128 | |
Number of Shares, Exercisable, Ending balance | shares | 128 | |
Weighted Average Exercise Price, Granted | $ / shares | $ 0.001 | |
Weighted Average Exercise Price, Exercised | $ / shares | 0.001 | |
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares | 0.001 | |
Weighted Average Exercise Price, Vested, Ending balance | $ / shares | 0.001 | |
Weighted Average Exercise Price, Exercisable, Ending balance | $ / shares | $ 0.001 | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | 5 years 2 months 16 days | |
Weighted Average Remaining Contractual Life (Years), Vested, Ending balance | 5 years 2 months 16 days | |
Weighted Average Remaining Contractual Life (Years), Exercisable, Ending balance | 5 years 2 months 16 days | |
Aggregate Intrinsic Value, Outstanding, Ending balance | $ | $ 1,434 | [1] |
Aggregate Intrinsic Value, Vested, Ending balance | $ | 1,434 | [1] |
Aggregate Intrinsic Value, Exercisable, Ending balance | $ | $ 1,434 | [1] |
Share Options [Member] | ADS [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Closing price | $ / shares | $ 11.18 | |
[1] | The aggregated intrinsic value in the preceding table represents the difference between Sohu's closing ADS price of $11.18 on December 31, 2019 and the nominal exercise price of the options. |
Sohu.com Limited Shareholders_7
Sohu.com Limited Shareholders' Equity (Sohu's 2018 Share Incentive Plan, Restricted Share Unit Activity) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 18,251,000 | $ 2,095,000 | $ 41,468,000 |
Sohu.com Limited [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 395,000 | (1,916,000) | (814,000) |
Sohu.com Limited [Member] | Sohu 2018 Share Incentive Plan [Member] | Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 0 | 0 | (1,700,000) |
Unrecognized compensation expenses | 0 | ||
Fair value of restricted stock units vested | $ 0 | $ 0 | $ 300,000 |
Sohu.com Limited Shareholders_8
Sohu.com Limited Shareholders' Equity (Sogou 2010 Share Incentive Plan, Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 22, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 18,251 | $ 2,095 | $ 41,468 | |
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 13,500 | 12,500 | 23,000 | |
Unrecognized compensation expenses | $ 2,700 | |||
Unrecognized compensation expenses, weighted average period for recognition (in years) | 1 year 6 months 22 days | |||
Total intrinsic value of share options exercised | $ 1,600 | $ 33,200 | $ 11,100 | |
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Performance-based options [Member] | Share-based Compensation Award, Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Installments of share options granted | Four equal installments | |||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Performance-based options [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Installments of share options granted | Two or four equal installments | |||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Service-based options [Member] | Share-based Compensation Award, Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Installments of share options granted | Four equal installments | |||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Service-based options [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Installments of share options granted | Two or four equal installments | |||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | IPO-based options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Installments of share options granted | Five equal installments | |||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance | 41,500,000 | |||
Plan expiration date | Oct. 19, 2020 | |||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum term of share rights granted under share incentive plan | 10 years |
Sohu.com Limited Shareholders_9
Sohu.com Limited Shareholders' Equity (Sogou 2010 Share Incentive Plan, Summary of Categories of Share Options) (Details) - Sogou [Member] - Sogou 2010 Share Incentive Plan [Member] shares in Thousands | Dec. 31, 2019shares |
Share Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 39,213 |
Number of shares under granted share options for purposes of share-based compensation expense | 37,340 |
Number of shares under vested and exercisable share options | 32,974 |
Number of shares under exercised share options | 30,178 |
Performance-based options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 29,932 |
Number of shares under granted share options for purposes of share-based compensation expense | 28,059 |
Number of shares under vested and exercisable share options | 27,653 |
Number of shares under exercised share options | 26,767 |
Service-based options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 2,031 |
Number of shares under granted share options for purposes of share-based compensation expense | 2,031 |
Number of shares under vested and exercisable share options | 951 |
Number of shares under exercised share options | 481 |
IPO-based options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 7,250 |
Number of shares under granted share options for purposes of share-based compensation expense | 7,250 |
Number of shares under vested and exercisable share options | 4,370 |
Number of shares under exercised share options | 2,930 |
Sohu.com Limited Shareholder_10
Sohu.com Limited Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Option Activity) (Details) - Sogou [Member] - Sogou 2010 Share Incentive Plan [Member] - Share Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding, Beginning balance | 6,445 | ||
Number of Shares, Granted | 1,432 | ||
Number of Shares, Exercised | (500) | ||
Number of Shares, Forfeited or expired | (215) | ||
Number of Shares, Outstanding, Ending balance | 7,162 | 6,445 | |
Number of Shares, Vested and expected to vest thereafter, Ending balance | 6,572 | ||
Number of Shares, Exercisable, Ending balance | 2,796 | ||
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 0.419 | ||
Weighted Average Exercise Price, Granted | 0.001 | ||
Weighted Average Exercise Price, Exercised | 0.001 | ||
Weighted Average Exercise Price, Forfeited or expired | 0.001 | ||
Weighted Average Exercise Price, Outstanding, Ending balance | 0.377 | $ 0.419 | |
Weighted Average Exercise Price, Vested and expected to vest thereafter, Ending balance | 0.411 | ||
Weighted Average Exercise Price, Exercisable, Ending balance | $ 0.033 | ||
Weighted Average Remaining Contractual Life (Years), Outstanding, Beginning balance | 4 years 5 months 12 days | 5 years 3 months 14 days | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | 4 years 5 months 12 days | 5 years 3 months 14 days | |
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest thereafter, Ending balance | 4 years 4 months 6 days | ||
Weighted Average Remaining Contractual Life (Years), Exercisable, Ending balance | 4 years 5 months 1 day | ||
Aggregate Intrinsic Value, Outstanding, Ending balance | [1] | $ 29,887 | |
Aggregate Intrinsic Value, Vested and expected to vest thereafter, Ending balance | [1] | 27,198 | |
Aggregate Intrinsic Value, Exercisable, Ending balance | [1] | $ 11,819 | |
Class A Ordinary Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price | $ 4.55 | ||
ADS [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price | $ 4.55 | ||
[1] | The aggregate intrinsic values in the preceding table represent the difference between the closing price of $4.55 per Sogou ADS (each representing one Class A Ordinary Share) on December 31, 2019 and the exercise prices of the options. |
Sohu.com Limited Shareholder_11
Sohu.com Limited Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Option Assumptions) (Details) - Sogou [Member] - Share Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 2 | ||
Expected forfeiture rate (post-vesting) | 12.00% | ||
Weighted average expected option life | 10 years | 10 years | |
Dividend yield | 0.00% | 0.00% | |
Weighted average fair value of share options | $ 4.87 | $ 10.09 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 2.37% | 3.41% | |
Exercise multiple | 2 | ||
Expected forfeiture rate (post-vesting) | 0.00% | ||
Volatility rate | 41.00% | 40.00% | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 3.45% | 3.95% | |
Exercise multiple | 3 | ||
Expected forfeiture rate (post-vesting) | 12.00% | ||
Volatility rate | 42.00% | 46.00% | |
Sogou 2010 Share Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 2 | ||
Expected forfeiture rate (post-vesting) | 12.00% | ||
Weighted average expected option life | 7 years | 9 years | 7 years |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted average fair value of share options | $ 4.05 | $ 12.26 | $ 10.35 |
Sogou 2010 Share Incentive Plan [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 2.60% | 3.36% | 2.14% |
Exercise multiple | 2 | 2 | |
Expected forfeiture rate (post-vesting) | 0.00% | 0.00% | |
Volatility rate | 36.00% | 40.00% | 39.00% |
Sogou 2010 Share Incentive Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 2.86% | 3.51% | 3.00% |
Exercise multiple | 3 | 3 | |
Expected forfeiture rate (post-vesting) | 12.00% | 12.00% | |
Volatility rate | 41.00% | 46.00% | 47.00% |
Sohu.com Limited Shareholder_12
Sohu.com Limited Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Option Assumptions, Narrative) (Details) - Sogou [Member] - Share Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 2 | ||
Estimated forfeiture rate | 12.00% | ||
Estimated dividend yield | 0.00% | 0.00% | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 2 | ||
Estimated forfeiture rate | 0.00% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 3 | ||
Estimated forfeiture rate | 12.00% | ||
Sogou 2010 Share Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 2 | ||
Estimated forfeiture rate | 12.00% | ||
Estimated dividend yield | 0.00% | 0.00% | 0.00% |
Sogou 2010 Share Incentive Plan [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 2 | 2 | |
Estimated forfeiture rate | 0.00% | 0.00% | |
Sogou 2010 Share Incentive Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 3 | 3 | |
Estimated forfeiture rate | 12.00% | 12.00% | |
Sogou 2010 Share Incentive Plan [Member] | Management [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 3 | ||
Sogou 2010 Share Incentive Plan [Member] | Management [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated forfeiture rate | 0.00% | ||
Sogou 2010 Share Incentive Plan [Member] | Management [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated forfeiture rate | 1.00% | ||
Sogou 2010 Share Incentive Plan [Member] | Key employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 2 | ||
Estimated forfeiture rate | 12.00% |
Sohu.com Limited Shareholder_13
Sohu.com Limited Shareholders' Equity (Sogou Inc. Share-based Awards, Sogou 2017 Share Incentive Plan, Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 18,251 | $ 2,095 | $ 41,468 | |
Sogou [Member] | Sogou 2017 Share Incentive Plan [Member] | Share Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 2,400 | $ 1,600 | ||
Unrecognized compensation expenses | $ 2,300 | |||
Unrecognized compensation expenses, weighted average period for recognition (in years) | 1 year 10 months 24 days | |||
Sogou [Member] | Sogou 2017 Share Incentive Plan [Member] | Performance-based options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Installments of share options granted | Four equal installments | |||
Sogou [Member] | Sogou 2017 Share Incentive Plan [Member] | Service-based options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Installments of share options granted | Four equal installments | |||
Sogou [Member] | Sogou 2017 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares for issuance | 28,000,000 | |||
Sogou [Member] | Sogou 2017 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum term of share incentive award granted under share incentive plan | 10 years |
Sohu.com Limited Shareholder_14
Sohu.com Limited Shareholders' Equity (Sogou Inc. Share-based Awards, Sogou 2017 Share Incentive Plan, Summary of Categories of Share Options) (Details) - Sogou [Member] - Sogou 2017 Share Incentive Plan [Member] shares in Thousands | Dec. 31, 2019shares |
Share Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 969 |
Number of shares under granted share options for purposes of share-based compensation expense | 847 |
Number of shares under vested and exercisable share options | 169 |
Number of shares under exercised share options | 48 |
Performance-based options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 140 |
Number of shares under granted share options for purposes of share-based compensation expense | 18 |
Number of shares under vested and exercisable share options | 14 |
Number of shares under exercised share options | 0 |
Service-based options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 829 |
Number of shares under granted share options for purposes of share-based compensation expense | 829 |
Number of shares under vested and exercisable share options | 155 |
Number of shares under exercised share options | 48 |
Sohu.com Limited Shareholder_15
Sohu.com Limited Shareholders' Equity (Sogou Inc. Share-based Awards, Sogou 2017 Share Incentive Plan, Share Option Activity) (Details) - Sogou [Member] - Sogou 2017 Share Incentive Plan [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding, Beginning balance | 730 | ||
Number of Shares, Granted | 267 | ||
Number of Shares, Exercised | (48) | ||
Number of Shares, Forfeited or expired | (151) | ||
Number of Shares, Outstanding, Ending balance | 798 | 730 | |
Number of Shares, Vested and expected to vest thereafter, Ending balance | 638 | ||
Number of Shares, Exercisable, Ending balance | 121 | ||
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 0.001 | ||
Weighted Average Exercise Price, Granted | 0.001 | ||
Weighted Average Exercise Price, Exercised | 0.001 | ||
Weighted Average Exercise Price, Forfeited or expired | 0.001 | ||
Weighted Average Exercise Price, Outstanding, Ending balance | 0.001 | $ 0.001 | |
Weighted Average Exercise Price, Vested and expected to vest thereafter, Ending balance | 0.001 | ||
Weighted Average Exercise Price, Exercisable, Ending balance | $ 0.001 | ||
Weighted Average Remaining Contractual Life (Years), Outstanding, Beginning balance | 8 years 10 months 24 days | 9 years 6 months 25 days | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | 8 years 10 months 24 days | 9 years 6 months 25 days | |
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest thereafter, Ending balance | 8 years 10 months 13 days | ||
Weighted Average Remaining Contractual Life (Years), Exercisable, Ending balance | 8 years 6 months 18 days | ||
Aggregate Intrinsic Value, Outstanding, Ending balance | [1] | $ 3,629 | |
Aggregate Intrinsic Value, Vested and expected to vest thereafter, Ending balance | [1] | 2,904 | |
Aggregate Intrinsic Value, Exercisable, Ending balance | [1] | $ 551 | |
Class A Ordinary Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price | $ 4.55 | ||
ADS [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price | $ 4.55 | ||
[1] | The aggregate intrinsic values in the preceding table represent the difference between the closing price of $4.55 per Sogou ADS (each representing one Class A Ordinary Share) on December 31, 2019 and the exercise prices of the options. |
Sohu.com Limited Shareholder_16
Sohu.com Limited Shareholders' Equity (Sogou Inc. Share-based Awards, Sogou 2017 Share Incentive Plan, Share Option Assumptions) (Details) - Sogou [Member] - Share Options [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise multiple | 2 | |
Expected forfeiture rate (post-vesting) | 12.00% | |
Weighted average expected option life | 10 years | 10 years |
Dividend yield | 0.00% | 0.00% |
Weighted average fair value of share options | $ 4.87 | $ 10.09 |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average risk-free interest rate | 2.37% | 3.41% |
Exercise multiple | 2 | |
Expected forfeiture rate (post-vesting) | 0.00% | |
Volatility rate | 41.00% | 40.00% |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average risk-free interest rate | 3.45% | 3.95% |
Exercise multiple | 3 | |
Expected forfeiture rate (post-vesting) | 12.00% | |
Volatility rate | 42.00% | 46.00% |
Sohu.com Limited Shareholder_17
Sohu.com Limited Shareholders' Equity (Sohu Management Sogou Share Option Arrangement, Narrative) (Details) - USD ($) | Apr. 14, 2011 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 01, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 18,251,000 | $ 2,095,000 | $ 41,468,000 | ||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares under contractually granted share options | 8,305,000 | ||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Performance-based options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares under contractually granted share options | 8,290,000 | ||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Class A Ordinary Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Sogou's ordinary shares previously held by Sohu | 8,800,000 | ||||
Sogou's newly-issued shares | 3,200,000 | ||||
Sogou's newly-issued shares, price per share | $ 0.625 | ||||
Sogou's newly-issued shares, value | $ 2,000,000 | ||||
Number of shares under contractually granted share options | 8,305,000 | ||||
Installments of share options granted | Four equal installments | ||||
Share-based compensation expense | $ 0 | 0 | 0 | ||
Total intrinsic value of share options exercised | $ 249,000 | $ 0 | $ 0 | ||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Class A Ordinary Shares [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fixed exercise price of ordinary share | $ 0.001 | ||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Class A Ordinary Shares [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fixed exercise price of ordinary share | $ 0.625 | ||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Class A Ordinary Shares [Member] | Maximum [Member] | Share Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for issuance | 12,000,000 |
Sohu.com Limited Shareholder_18
Sohu.com Limited Shareholders' Equity (Sohu Management Sogou Share Option Arrangement, Summary of Categories of Share Options) (Details) - Sogou [Member] - Sohu Management Sogou Share Option Arrangement [Member] shares in Thousands | Dec. 31, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 8,305 |
Number of shares under granted share options for purposes of share-based compensation expense | 8,305 |
Number of shares under vested and exercisable share options | 8,305 |
Number of shares under exercised share options | 8,296 |
Performance-based options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 8,290 |
Number of shares under granted share options for purposes of share-based compensation expense | 8,290 |
Number of shares under vested and exercisable share options | 8,290 |
Number of shares under exercised share options | 8,290 |
Service-based options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares under contractually granted share options | 15 |
Number of shares under granted share options for purposes of share-based compensation expense | 15 |
Number of shares under vested and exercisable share options | 15 |
Number of shares under exercised share options | 6 |
Sohu.com Limited Shareholder_19
Sohu.com Limited Shareholders' Equity (Sohu Management Sogou Share Option Arrangement, Share Option Activity) (Details) - Sogou [Member] - Sohu Management Sogou Share Option Arrangement [Member] - Share Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding, Beginning balance | 9 | ||
Number of Shares, Granted | 0 | ||
Number of Shares, Exercised | 0 | ||
Number of Shares, Forfeited or expired | 0 | ||
Number of Shares, Outstanding, Ending balance | 9 | 9 | |
Number of Shares, Vested, Ending balance | 9 | ||
Number of Shares, Exercisable, Ending balance | 9 | ||
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 0.001 | ||
Weighted Average Exercise Price, Outstanding, Ending balance | 0.001 | $ 0.001 | |
Weighted Average Exercise Price, Vested, Ending balance | 0.001 | ||
Weighted Average Exercise Price, Exercisable, Ending balance | $ 0.001 | ||
Weighted Average Remaining Contractual Life (Years), Outstanding, Beginning balance | 5 years 4 months 17 days | 6 years 4 months 17 days | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | 5 years 4 months 17 days | 6 years 4 months 17 days | |
Weighted Average Remaining Contractual Life (Years), Vested, Ending balance | 5 years 4 months 17 days | ||
Weighted Average Remaining Contractual Life (Years), Exercisable, Ending balance | 5 years 4 months 17 days | ||
Aggregate Intrinsic Value, Outstanding, Ending balance | [1] | $ 41 | |
Aggregate Intrinsic Value, Vested, Ending balance | [1] | 41 | |
Aggregate Intrinsic Value, Exercisable, Ending balance | [1] | $ 41 | |
Class A Ordinary Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price | $ 4.55 | ||
ADS [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price | $ 4.55 | ||
[1] | The aggregate intrinsic values in the preceding table represent the difference between the closing price of $4.55 per Sogou ADS (each representing one Class A Ordinary Share) on December 31, 2019 and the exercise prices of the options. |
Sohu.com Limited Shareholder_20
Sohu.com Limited Shareholders' Equity (Sogou Inc. Share-based Awards, Option Modification) (Details) - Sogou [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2018 | |
Sogou 2010 Share Incentive Plan [Member] | Share Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares under contractually granted share options | 39,213,000 | |
Number of Class A ordinary shares deemed granted under share options | 37,340,000 | |
Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incremental fair value | $ 0 | |
Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Early Exercise of Share Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued upon the early exercise of options granted | 3,798,000 | |
Shares vested but have not been distributed to beneficiaries | 1,722,000 | |
Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | Vesting Condition Change of Share Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares under contractually granted share options | 2,181,192 | |
Number of Class A ordinary shares not deemed granted under share options | 1,601,427 | |
Number of Class A ordinary shares deemed granted under share options | 579,765 | |
Sohu Management Sogou Share Option Arrangement [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares under contractually granted share options | 8,305,000 | |
Number of Class A ordinary shares deemed granted under share options | 8,305,000 | |
Sohu Management Sogou Share Option Arrangement [Member] | Share Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incremental fair value | $ 0 | |
Sohu Management Sogou Share Option Arrangement [Member] | Class A Ordinary Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares under contractually granted share options | 8,305,000 |
Sohu.com Limited Shareholder_21
Sohu.com Limited Shareholders' Equity (Changyou 2008 Share Incentive Plan) (Details) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2009shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ | $ 18,251,000 | $ 2,095,000 | $ 41,468,000 | |
Changyou [Member] | Changyou 2008 Share Incentive Plan [Member] | Ordinary Shares [Member] | Ordinary Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for future issuance | shares | 2,000,000 | |||
Shares reserved for future issuance as result of stock split | shares | 2,000,000 | |||
Stock split, conversion ratio | 10 | |||
Award vesting period | 4 years | |||
Plan expiration date | Aug. 31, 2018 | |||
Share-based compensation expense | $ | $ 0 | |||
Changyou [Member] | Changyou 2008 Share Incentive Plan [Member] | Ordinary Shares [Member] | Ordinary Shares [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum term of share rights granted under share incentive plan | 10 years |
Sohu.com Limited Shareholder_22
Sohu.com Limited Shareholders' Equity (Changyou 2014 Share Incentive Plan, Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 26, 2019 | Jul. 28, 2016 | Jun. 01, 2015 | Feb. 16, 2015 | Nov. 02, 2014 | Jun. 27, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ 18,251 | $ 2,095 | $ 41,468 | ||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Certain members of management and certain other employees [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of share options vested | 2,952,000 | ||||||||
Total fair value of stock options granted | $ 36,400 | ||||||||
Share-based compensation expense | 1,900 | (6,500) | 17,400 | ||||||
Total fair values of share options vested | 1,000 | 5,700 | 14,800 | ||||||
Total intrinsic value of share options exercised | $ 6,600 | $ 14,900 | $ 10,300 | ||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Certain members of management and certain other employees [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Maximum term of share rights granted under share incentive plan | 10 years | ||||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Certain members of management and certain other employees [Member] | Class A Ordinary Shares [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares reserved for future issuance | 6,000,000 | 2,000,000 | |||||||
Plan expiration date | Jun. 30, 2024 | ||||||||
Number of shares under contractually granted share options | 3,023,000 | 100,000 | 1,998,000 | ||||||
Exercise prices of option granted | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Installments of share options granted | Four equal installments | ||||||||
Award vesting period | 4 years | ||||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Certain members of management and certain other employees [Member] | Class A restricted share units [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares under contractually granted share options | 2,416,000 | ||||||||
Number of Class A restricted share units converted to options | 24,000,000 | ||||||||
Exercise prices of option granted | $ 0.01 |
Sohu.com Limited Shareholder_23
Sohu.com Limited Shareholders' Equity (Changyou 2014 Share Incentive Plan, Share Option Activity) (Details) - Changyou [Member] - Changyou 2014 Share Incentive Plan [Member] - Share Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding, Beginning balance | 601 | ||
Number of Shares, Granted | 234 | ||
Number of Shares, Exercised | (762) | ||
Number of Shares, Forfeited or expired | 0 | ||
Number of Shares, Outstanding, Ending balance | 73 | 601 | |
Number of Shares, Vested, Ending balance | 73 | ||
Number of Shares, Exercisable, Ending balance | 73 | ||
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 0.01 | ||
Weighted Average Exercise Price, Granted | 0.01 | ||
Weighted Average Exercise Price, Exercised | 0.01 | ||
Weighted Average Exercise Price, Outstanding, Ending balance | 0.01 | $ 0.01 | |
Weighted Average Exercise Price, Vested, Ending balance | 0.01 | ||
Weighted Average Exercise Price, Exercisable, Ending balance | $ 0.01 | ||
Weighted Average Remaining Contractual Life (Years), Outstanding, Beginning balance | 5 years 5 months 1 day | 5 years 11 months 23 days | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | 5 years 5 months 1 day | 5 years 11 months 23 days | |
Aggregate Intrinsic Value, Outstanding, Ending balance | [1] | $ 357 | |
Aggregate Intrinsic Value, Vested, Ending balance | [1] | $ 357 | $ 5,487 |
Class A Ordinary Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price | $ 4.9 | ||
ADS [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price | $ 9.79 | ||
[1] | The aggregate intrinsic value in the preceding table represents the difference between Changyou's closing price of $9.79 per ADS, or $4.9 per Class A ordinary share, on December 31, 2019 and the nominal exercise price of the share option. |
Sohu.com Limited Shareholder_24
Sohu.com Limited Shareholders' Equity (Changyou 2019 Share Incentive Plan) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 26, 2019 | Aug. 03, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 18,251 | $ 2,095 | $ 41,468 | ||
Changyou [Member] | Changyou 2019 Share Incentive Plan [Member] | Share Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Installments of share options granted | Four equal installments | ||||
Award vesting period | 4 years | ||||
Number of options granted in period | 0 | ||||
Share-based compensation expense | $ 3,200 | ||||
Changyou [Member] | Changyou 2019 Share Incentive Plan [Member] | Share Options [Member] | Class A ordinary shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for issuance | 3,000,000 | ||||
Changyou [Member] | Changyou 2019 Share Incentive Plan [Member] | Share Options [Member] | Class A ordinary shares [Member] | Certain members of management and certain other employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares under contractually granted share options | 1,909,000 | ||||
Exercise prices of option granted | $ 0.01 |
Sohu.com Limited Shareholder_25
Sohu.com Limited Shareholders' Equity (Sohu Video Share-based Awards, Narrative) (Details) - USD ($) $ in Thousands | Jan. 04, 2012 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 18,251 | $ 2,095 | $ 41,468 | |
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Share Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Plan expiration date | Jan. 3, 2022 | |||
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Ordinary Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for future issuance | 25,000,000 | |||
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Ordinary Shares [Member] | Share Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares under contractually granted share options | 16,368,200 | |||
Installments of share options granted | Four equal installments | |||
Number of shares purchased on vested options | 4,972,800 | |||
Share-based compensation expense | $ (900) | $ (500) | $ 300 | |
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Ordinary Shares [Member] | Share Options [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum term of share rights granted under share incentive plan | 10 years |
Sohu.com Limited Shareholder_26
Sohu.com Limited Shareholders' Equity (Sohu Video Share-based Awards, Share Option Assumptions) (Details) - Sohu Video [Member] - Video 2011 Share Incentive Plan [Member] - Share Options [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average risk-free interest rate | 2.44% | 3.19% |
Exercise multiple | 2.8 | 2.8 |
Expected forfeiture rate (post-vesting) | 14.00% | 14.00% |
Weighted average expected option life | 2 years | 3 years |
Volatility rate | 53.90% | 45.10% |
Dividend yield | 0.00% | 0.00% |
Fair value | $ 0.35 | $ 0.53 |
Noncontrolling Interest (Narrat
Noncontrolling Interest (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest in consolidated balance sheets | $ 878,463 | $ 964,111 | |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | 105,945 | 92,723 | $ 84,523 |
Sogou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest in consolidated balance sheets | $ 726,960 | $ 686,503 | |
Percentage of noncontrolling interest recognized in consolidated balance sheets | 66.00% | 67.00% | |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ 58,955 | $ 65,586 | 77,025 |
Changyou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest in consolidated balance sheets | $ 151,503 | $ 277,608 | |
Percentage of noncontrolling interest recognized in consolidated balance sheets | 33.00% | 33.00% | |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ 46,990 | $ 27,137 | $ 7,603 |
Percentage of net income /(loss) attributable to noncontrolling interest recognized in consolidated statements of comprehensive income | 33.00% | 33.00% | 32.00% |
Noncontrolling Interest (Noncon
Noncontrolling Interest (Noncontrolling Interest in Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest in consolidated balance sheets | $ 878,463 | $ 964,111 |
Sogou [Member] | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest in consolidated balance sheets | 726,960 | 686,503 |
Changyou [Member] | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest in consolidated balance sheets | $ 151,503 | $ 277,608 |
Noncontrolling Interest (Nonc_2
Noncontrolling Interest (Noncontrolling Interest in Consolidated Statements of Comprehensive Income /(Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Noncontrolling Interest [Line Items] | |||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ 105,945 | $ 92,723 | $ 84,523 |
Net income from continuing operations attributable to noncontrolling shareholders | 117,177 | 107,318 | 91,076 |
Net loss from discontinued operations attributable to noncontrolling shareholders | (11,232) | (14,595) | (6,553) |
Sogou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | 58,955 | 65,586 | 77,025 |
Changyou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | 46,990 | 27,137 | 7,603 |
Other [Member] | |||
Noncontrolling Interest [Line Items] | |||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ 0 | $ 0 | $ (105) |
Net Income _(Loss) per Share (N
Net Income /(Loss) per Share (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Potential ordinary shares issuable upon exercise or settlement of share-based awards [Member] | Ordinary Shares [Member] | |||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | |||
Anti-dilutive potential common shares | 140,405 | 292,622 | 263,497 |
Net Income _(Loss) per Share (C
Net Income /(Loss) per Share (Calculation of Sohu Group's Basic and Diluted Net Loss per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||
Net loss from continuing operations attributable to Sohu.com Limited, basic | $ (126,570) | $ (129,842) | $ (540,548) |
Net loss from discontinued operations attributable to Sohu.com Limited, basic | (22,766) | (30,240) | (13,978) |
Net loss attributable to Sohu.com Limited, basic | (149,336) | (160,082) | (554,526) |
Effect of dilutive securities: | |||
Net loss from continuing operations attributable to Sohu.com Limited, diluted | (127,738) | (130,960) | (542,026) |
Net loss from discontinued operations attributable to Sohu.com Limited, diluted | (22,711) | (29,999) | (13,764) |
Net loss attributable to Sohu.com Limited, diluted | $ (150,449) | $ (160,959) | $ (555,790) |
Denominator: | |||
Weighted average basic ordinary shares outstanding | 39,249 | 38,959 | 38,858 |
Effect of dilutive securities: | |||
Share options and restricted share units | 0 | 0 | 0 |
Weighted average diluted ordinary shares outstanding | 39,249 | 38,959 | 38,858 |
Basic net loss per share attributable to Sohu.com Limited | |||
Continuing operations | $ (3.22) | $ (3.33) | $ (13.91) |
Discontinued operations | (0.58) | (0.78) | (0.36) |
Net loss per share | (3.80) | (4.11) | (14.27) |
Diluted net loss per share attributable to Sohu.com Limited | |||
Continuing operations, diluted | (3.25) | (3.36) | (13.95) |
Discontinued operations, diluted | (0.58) | (0.77) | (0.35) |
Net loss per share | $ (3.83) | $ (4.13) | $ (14.30) |
Sogou [Member] | |||
Effect of dilutive securities: | |||
Incremental dilution | $ (606) | $ (496) | $ (31) |
Changyou [Member] | |||
Effect of dilutive securities: | |||
Incremental dilution | $ (507) | $ (381) | $ (1,233) |
China Contribution Plan (Detail
China Contribution Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
China | |||
Multiemployer Plans [Line Items] | |||
Annual Contributions | $ 141,400,000 | $ 150,600,000 | $ 137,500,000 |
Profit Appropriation (Details)
Profit Appropriation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit Appropriation [Line Items] | |||
Total amount of profits contributed to funds | $ 10.4 | $ 7.3 | $ 12 |
Total balance of profits contributed to funds | $ 80.7 | $ 70.3 | |
China Foreign Investment Enterprises Law [Member] | Minimum [Member] | |||
Profit Appropriation [Line Items] | |||
Required percentage of after-tax-profit under PRC GAAP to be set aside as a general reserve fund | 10.00% | ||
Required registered capital ratio to de-force compulsory net profit allocation to general reserve fund | 50.00% | ||
China Company Law [Member] | Minimum [Member] | |||
Profit Appropriation [Line Items] | |||
Required percentage of after-tax-profit under PRC GAAP to be set aside as statutory surplus fund | 10.00% | ||
Required registered capital ratio to de-force compulsory net profit allocation to statutory surplus fund | 50.00% |
Concentration Risks (Details)
Concentration Risks (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Institutions | Dec. 31, 2018USD ($)Institutions | Dec. 31, 2017USD ($) | |
Concentration Risk [Line Items] | |||
Revenues | $ 1,845,447,000 | $ 1,812,827,000 | $ 1,769,589,000 |
TLBB [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | 215,200,000 | ||
Legacy TLBB Mobile [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | 101,100,000 | ||
Customer Risk [Member] | Total Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Revenues from customers that individually represent greater than 10% of total advertising revenues | $ 0 | $ 0 | $ 0 |
Product Risk [Member] | Total Revenue [Member] | TLBB [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 12.00% | ||
Product Risk [Member] | Total Revenue [Member] | Legacy TLBB Mobile [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 5.00% | ||
Product Risk [Member] | Total Revenue [Member] | Changyou [Member] | TLBB [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 47.00% | ||
Product Risk [Member] | Total Revenue [Member] | Changyou [Member] | Legacy TLBB Mobile [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 22.00% | ||
Product Risk [Member] | Online Game Revenue [Member] | Changyou [Member] | TLBB [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 49.00% | ||
Product Risk [Member] | Online Game Revenue [Member] | Changyou [Member] | Legacy TLBB Mobile [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 23.00% | ||
Credit risk [Member] | Cash and cash equivalents and short-term investments [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 64.00% | 60.00% | |
Number of financial institutions cash and cash equivalents concentrated held in | Institutions | 23 | 17 | |
Maximum percentage of Sohu's cash and bank deposits in any single financial institution | 24.00% | 35.00% |
Restricted Net Assets (Details)
Restricted Net Assets (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
RESTRICTED NET ASSETS [Abstract] | |
Portion of net after-tax income to be allocated to statutory surplus reserve fund | 10.00% |
Percentage rate of registered capital, reserve funds reached, appropriation not required | 50.00% |
Restricted net assets, amount | $ 428.5 |
Subsequent Event (Details)
Subsequent Event (Details) - Changyou Merger [Member] - Sohu [Member] - Subsequent Event [Member] - Changyou [Member] - USD ($) | Apr. 16, 2020 | Apr. 03, 2020 | Apr. 17, 2020 |
Sohu Game [Member] | ICBC Tokyo [Member] | |||
Subsequent Event [Line Items] | |||
Bearing interest of term facility | Three Month LIBOR plus a margin of 1.75% | ||
Exchange rate of deposit equivalent | USD1.00 = RMB7.20 | ||
Term loan drawdown by Sohu Game | $ 192,000,000 | ||
Sohu Game [Member] | ICBC Tokyo [Member] | Four-Year Facility [Member] | |||
Subsequent Event [Line Items] | |||
The outstanding principal amount of loans due and payable at the end of each of the second and third calendar years | $ 750,000,000 | ||
Maximum [Member] | Sohu Game [Member] | ICBC Tokyo [Member] | |||
Subsequent Event [Line Items] | |||
Term loan | 250,000,000 | ||
Maximum [Member] | Sohu Game [Member] | ICBC Tokyo [Member] | One-Year Facility [Member] | |||
Subsequent Event [Line Items] | |||
Term loan | 100,000,000 | ||
Maximum [Member] | Sohu Game [Member] | ICBC Tokyo [Member] | Four-Year Facility [Member] | |||
Subsequent Event [Line Items] | |||
Term loan | $ 150,000,000 | ||
Minimum [Member] | |||
Subsequent Event [Line Items] | |||
Voting power held by the Company | 90.00% | ||
Minimum [Member] | ICBC Tokyo [Member] | |||
Subsequent Event [Line Items] | |||
Proportion of mortgaged outstanding of Sohu Game | 97.90% | ||
Minimum [Member] | Sohu Game [Member] | ICBC Tokyo [Member] | |||
Subsequent Event [Line Items] | |||
Deposit equivalent within one month | $ 125,000,000 | ||
Common Class A [Member] | |||
Subsequent Event [Line Items] | |||
Cash received in exchange for the right | $ 5.4 | ||
ADS [Member] | |||
Subsequent Event [Line Items] | |||
Cash received in exchange for the right | $ 10.80 |
Additional Information - Cond_3
Additional Information - Condensed Financial Information of Sohu.com Inc. (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
ADDITIONAL INFORMATION - CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract] | ||
Material contingencies | No | No |
Significant provisions of long-term obligations | No | No |
Guarantees | No | No |
Additional Information - Cond_4
Additional Information - Condensed Financial Statements (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | |||
Cash and cash equivalents | $ 305,126 | $ 819,485 | |
Prepaid and other current assets | 124,332 | 225,744 | |
Total current assets | 2,015,668 | 2,388,898 | |
Other assets | 65,620 | 43,928 | |
Total assets | 2,689,790 | 3,370,847 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities | 1,098,793 | 1,255,218 | |
Long-term liabilities | 284,080 | 562,678 | |
Total liabilities | 1,382,873 | 1,817,896 | |
Shareholders' equity: | |||
Ordinary Shares: $0.001 par value per share (75,400 shares authorized; 39,229 shares and 39,269 shares, respectively, issued and outstanding as of December 31, 2018 and 2019) | 39 | 39 | |
Additional paid-in capital | 948,201 | 958,883 | |
Accumulated other comprehensive income | 24,351 | 24,719 | |
Accumulated deficit | (544,137) | (394,801) | |
Total shareholders' equity | 428,454 | 588,840 | |
Total liabilities and shareholders' equity | 2,689,790 | 3,370,847 | |
Sohu.com Limited [Member] | |||
ASSETS | |||
Cash and cash equivalents | 3,756 | 16,492 | $ 2,845 |
Prepaid and other current assets | 744 | 1,169 | |
Due from subsidiaries and VIEs | 530,182 | 470,649 | |
Total current assets | 534,682 | 488,310 | |
Interests in subsidiaries and VIEs | 22,093 | 224,679 | |
Other assets | 27,736 | 27,736 | |
Total assets | 584,511 | 740,725 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities | 3,757 | 7,472 | |
Long-term liabilities | 152,300 | 144,414 | |
Total liabilities | 156,057 | 151,886 | |
Shareholders' equity: | |||
Ordinary Shares: $0.001 par value per share (75,400 shares authorized; 39,229 shares and 39,269 shares, respectively, issued and outstanding as of December 31, 2018 and 2019) | 39 | 39 | |
Additional paid-in capital | 948,201 | 958,883 | |
Accumulated other comprehensive income | 24,351 | 24,718 | |
Accumulated deficit | (544,137) | (394,801) | |
Total shareholders' equity | 428,454 | 588,839 | |
Total liabilities and shareholders' equity | $ 584,511 | $ 740,725 |
Additional Information - Cond_5
Additional Information - Condensed Financial Statements (Condensed Balance Sheets) (Parenthetical) (Details) - $ / shares shares in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 75,400 | 75,400 | ||
Ordinary Share, shares issued (in shares) | 39,269 | 39,229 | ||
Ordinary Share, shares outstanding (in shares) | 39,269 | 39,229 | ||
Sohu.com Limited [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 75,400 | 75,400 | ||
Ordinary Share, shares issued (in shares) | 39,269 | 39,229 | ||
Ordinary Share, shares outstanding (in shares) | 39,269 | 39,229 | 38,898 | 38,742 |
Additional Information - Cond_6
Additional Information - Condensed Financial Statements (Condensed Statements of Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Statement of Income Captions [Line Items] | |||
Revenues | $ 1,845,447 | $ 1,812,827 | $ 1,769,589 |
Cost of revenues | 982,095 | 982,486 | 950,268 |
Gross profit | 863,352 | 830,341 | 819,321 |
Operating expenses: | |||
General and administrative | 95,773 | 108,764 | 119,041 |
Operating loss | 380 | (116,243) | (189,198) |
Other income /(expense) | 21,948 | 64,724 | 6,697 |
Income /(loss) before income tax benefit /(expense) | 21,783 | (35,957) | (176,836) |
Income tax expense /(benefit) | 31,176 | (13,433) | 272,636 |
Net loss | (149,336) | (160,082) | (554,526) |
Other comprehensive income /(loss) | (13,069) | (37,339) | 68,429 |
Comprehensive loss | (149,704) | (166,074) | (519,534) |
Sohu.com Limited [Member] | |||
Condensed Statement of Income Captions [Line Items] | |||
Revenues | 0 | 0 | 0 |
Cost of revenues | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 |
Operating expenses: | |||
General and administrative | 2,320 | 12,206 | 8,824 |
Operating loss | (2,320) | (12,206) | (8,824) |
Share of loss of subsidiaries and VIEs | (184,092) | (232,307) | (331,106) |
Other income /(expense) | 44,738 | 22 | 71 |
Interest income | 225 | 5,865 | 152 |
Income /(loss) before income tax benefit /(expense) | (141,449) | (238,626) | (339,707) |
Income tax expense /(benefit) | 7,887 | (78,544) | 214,819 |
Net loss | (149,336) | (160,082) | (554,526) |
Other comprehensive income /(loss) | 24,351 | (13,494) | 34,992 |
Comprehensive loss | $ (124,985) | $ (173,576) | $ (519,534) |
Additional Information - Cond_7
Additional Information - Condensed Financial Statements (Condensed Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||||||
Net loss | $ (43,391) | $ (67,359) | $ (470,003) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
Share-based compensation expense /(benefit) | 18,251 | 2,095 | 41,468 | |||
Changes in current assets and liabilities: | ||||||
Prepaid and other current assets | (11,262) | 26,182 | (30,037) | |||
Tax liabilities | 14,709 | (72,954) | 262,726 | |||
Net cash used in operating activities | 210,590 | 84,025 | 187,687 | |||
Cash flows from investing activities: | ||||||
Net cash used in investing activities | (443,220) | (459,244) | (714,503) | |||
Net decrease in cash, cash equivalents, restricted cash and restricted time deposits | (755,839) | (298,429) | 317,069 | |||
Cash, cash equivalents, restricted cash and restricted time deposits at beginning of year | 1,067,203 | 1,368,052 | ||||
Cash, cash equivalents, restricted cash and restricted time deposits at end of year | 314,027 | 1,067,203 | 1,368,052 | |||
Reconciliation of cash, cash equivalents, and restricted time deposits to the condensed balance sheets | ||||||
Cash and cash equivalents | $ 305,126 | $ 819,485 | ||||
Total cash, cash equivalents, restricted cash and restricted time deposits at end of year | 314,027 | 1,067,203 | 1,368,052 | 314,027 | 1,067,203 | $ 1,368,052 |
Sohu.com Limited [Member] | ||||||
Cash flows from operating activities: | ||||||
Net loss | (149,336) | (160,082) | (554,526) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
Investment loss from subsidiaries and VIEs | 184,092 | 232,307 | 331,106 | |||
Share-based compensation expense /(benefit) | 395 | (1,916) | (814) | |||
Others | 0 | (993) | 0 | |||
Changes in current assets and liabilities: | ||||||
Due from subsidiaries and VIEs | (59,533) | (2,963) | 0 | |||
Prepaid and other current assets | 425 | (3,996) | 3,933 | |||
Tax liabilities | 7,886 | (79,569) | 222,350 | |||
Accrued liabilities | (3,715) | 1,892 | (8,194) | |||
Net cash used in operating activities | (19,786) | (15,320) | (6,145) | |||
Cash flows from investing activities: | ||||||
Dividend received | 7,050 | 0 | 0 | |||
Net cash used in investing activities | 7,050 | 0 | 0 | |||
Net decrease in cash, cash equivalents, restricted cash and restricted time deposits | (12,736) | (15,320) | (6,145) | |||
Cash, cash equivalents, restricted cash and restricted time deposits at beginning of year | 16,732 | 2,845 | 8,990 | |||
Cash and cash equivalents, restricted cash and restricted time deposits of Sohu.com Limited at the date of the liquidation of Sohu.com Inc. | 0 | 29,207 | 0 | |||
Cash, cash equivalents, restricted cash and restricted time deposits at end of year | 3,996 | 16,732 | 2,845 | |||
Reconciliation of cash, cash equivalents, and restricted time deposits to the condensed balance sheets | ||||||
Cash and cash equivalents | 3,756 | 16,492 | 2,845 | |||
Restricted time deposits included in other assets | 240 | 240 | 0 | |||
Total cash, cash equivalents, restricted cash and restricted time deposits at end of year | $ 3,996 | $ 16,732 | $ 8,990 | $ 3,996 | $ 16,732 | $ 2,845 |