þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 94-3221585 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
12061 Bluemont Way, Reston, Virginia | 20190 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered |
Common Stock $0.001 Par Value Per Share | NASDAQ Global Select Market |
Large accelerated filer | þ | Accelerated filer | o | ||||
Non-accelerated filer | o | Smaller reporting company | o | ||||
Emerging growth company | o |
Page | ||
ITEM 1. | BUSINESS |
• | Distributed Servers: We operate a large number of high-speed servers globally to support localized capacity and availability demands. In conjunction with our proprietary software, processes and procedures, this platform offers rapid failover, global and local load balancing, and threshold monitoring on critical servers. |
• | Networking: We deploy and maintain a redundant and diverse global network, maintain high-speed, redundant connections to numerous internet service providers, and maintain peering relationships globally to ensure that our critical services are readily accessible to customers at all times. |
• | Security: We incorporate architectural concepts such as protected domains, restricted nodes and distributed access control in our system architecture. In addition, we employ firewalls and intrusion detection software, as well as proprietary security mechanisms at many points across our infrastructure. We perform recurring internal vulnerability testing and controls audits, and also contract with third-party security consultants who perform periodic penetration tests and security risk assessments on our systems. Verisign has engineered resiliency and diversity into how it hosts classes of products throughout its set of interconnected sites to mitigate unknown vendor defects and zero-hour security vulnerabilities. This includes different physical security silos, which themselves are separated into bulkheads, and in which servers are located. Corporate networks are in their own physical silo. Thus, the corporate networks to which personnel directly connect are separated from the silos that house production services; administration of production gear from corporate systems must go through an internal, fortified intermediary; and account credentials used within the corporate networks are not used within the production silos, nor on the fortified systems. |
• | Data Integrity: Verisign employs both phased and systemic integrity validation operations via a number of proprietary mechanisms on all internal DNS publication operations. |
As of December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Employee headcount by function: | ||||||||
Cost of revenues | 288 | 324 | 314 | |||||
Sales and marketing | 133 | 143 | 183 | |||||
Research and development | 226 | 228 | 253 | |||||
General and administrative | 305 | 295 | 269 | |||||
Total | 952 | 990 | 1,019 |
• | regional internet infrastructure development, expansion, penetration and adoption; |
• | market acceptance and adoption of substitute products and services that enable online presence without a domain, including social media, ecommerce platforms, website builders and mobile applications; |
• | public perception of the security of our technologies and of IP and other networks; |
• | the introduction and consumer acceptance of new generations of mobile devices, and in particular the use of internet navigation mobile applications as the primary engagement mechanism; |
• | increasing cyber threats and the associated customer need and demand for our Security Services offerings; |
• | government regulations affecting internet access and availability, domain name registrations or the provision of registry services, or e-commerce and telecommunications over the internet; |
• | the maturity and depth of the sales channels within developing and emerging markets and their ability and motivation to establish and support sales for domain names; |
• | preference by markets for the use of their own country’s ccTLDs as a substitute or alternative to our TLDs; and |
• | increased acceptance and use of new gTLDs as substitutes for established gTLDs. |
• | power loss, transmission cable cuts and other telecommunications failures; |
• | damage or interruption caused by fire, earthquake, and other natural disasters; |
• | attacks, including hacktivism, by miscreants or other nefarious actors; |
• | computer viruses, software defects, or hardware defects; |
• | physical or electronic break-ins, sabotage, intentional acts of vandalism, terrorist attacks, unintentional mistakes or errors, and other events beyond our control; |
• | risks inherent in or arising from the terms and conditions of our agreements with service providers to operate our networks and data centers; |
• | state suppression of internet operations; and |
• | any failure to implement effective and timely remedial actions in response to any damage or interruption. |
• | our customers’ continued growth and development of their businesses and our customers’ ability to continue as going concerns or maintain their businesses, which could affect demand for our products and services; |
• | current and future demand for our services, including decreases as a result of reduced spending on information technology and communications by our customers; |
• | price competition for our products and services; |
• | the price of our common stock; |
• | our liquidity and our associated ability to execute on any share repurchase plans; and |
• | our ability to service our debt, to obtain financing or assume new debt obligations. |
• | competition with foreign companies or other domestic companies entering the foreign markets in which we operate, as well as foreign governments actively promoting their ccTLDs, which we do not operate; |
• | legal uncertainty regarding liability, enforcing our contracts, and compliance with foreign laws; |
• | tariffs and other trade barriers and restrictions; |
• | difficulties in staffing and managing foreign operations; |
• | currency fluctuations; |
• | potential problems associated with adapting our services to technical conditions existing in different countries; |
• | difficulty of verifying customer information, including complying with the customer verification requirements of certain countries; |
• | more stringent privacy policies in some foreign countries; |
• | additional vulnerability from terrorist groups targeting U.S. interests abroad; |
• | potentially conflicting or adverse tax consequences; |
• | reliance on third parties in foreign markets in which we only recently started doing business; and |
• | potential concerns of international customers and prospects regarding doing business with U.S. technology companies due to alleged U.S. government data collection policies. |
• | adverse changes in the value of the properties, due to interest rate changes, changes in the commercial property markets, easements or other encumbrances, a government exercising its right of eminent domain, or other factors; |
• | ongoing maintenance expenses and costs of improvements; |
• | the possible need for structural improvements in order to comply with environmental, health and safety, zoning, seismic, disability law, or other requirements; |
• | the possibility of environmental contamination or notices of violation from federal or state environmental agencies; and |
• | possible disputes with neighboring owners, tenants, service providers or others. |
• | our stockholders may take action only at a duly called meeting and not by written consent; |
• | special meetings of our stockholders may be called only by the chairman of the board of directors, the president, our Board, or the secretary (acting as a representative of the stockholders) whenever a stockholder or group of stockholders owning at least twenty-five percent (25%) in the aggregate of the capital stock issued, outstanding and entitled to vote, and who held that amount in a net long position continuously for at least one year, so request in writing; |
• | vacancies on our Board can be filled until the next annual meeting of stockholders by a majority of directors then in office; and |
• | our Board has the ability to designate the terms of and issue new series of preferred stock without stockholder approval. |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
ITEM 2. | PROPERTIES |
Approximate | |||||
Major Locations | Square Footage | Use | |||
United States: | |||||
Reston, Virginia | 221,000 | Corporate Headquarters | |||
New Castle, Delaware | 105,000 | Data Center | |||
Dulles, Virginia | 60,000 | Data Center | |||
Europe: | |||||
Fribourg, Switzerland | 10,000 | Data Center and Corporate Services |
ITEM 3. | LEGAL PROCEEDINGS |
ITEM 4. | MINE SAFETY DISCLOSURES |
Name | Age | Position | |||
D. James Bidzos | 62 | Executive Chairman, President and Chief Executive Officer | |||
Todd B. Strubbe | 54 | Executive Vice President, Chief Operating Officer | |||
George E. Kilguss, III | 57 | Executive Vice President, Chief Financial Officer | |||
Thomas C. Indelicarto | 54 | Executive Vice President, General Counsel and Secretary |
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
Price Range | ||||||||
High | Low | |||||||
Year ended December 31, 2017: | ||||||||
Fourth Quarter | $ | 118.28 | $ | 106.17 | ||||
Third Quarter | $ | 106.81 | $ | 92.91 | ||||
Second Quarter | $ | 94.93 | $ | 87.01 | ||||
First Quarter | $ | 88.08 | $ | 76.45 | ||||
Year ended December 31, 2016: | ||||||||
Fourth Quarter | $ | 86.98 | $ | 74.46 | ||||
Third Quarter | $ | 87.19 | $ | 74.01 | ||||
Second Quarter | $ | 91.99 | $ | 80.47 | ||||
First Quarter | $ | 90.61 | $ | 70.26 |
Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1)(2) | ||||||||||
(Shares in thousands) | |||||||||||||
October 1 – 31, 2017 | 468 | $108.28 | 468 | $ | 571.8 | million | |||||||
November 1 – 30, 2017 | 433 | $111.64 | 433 | $ | 523.5 | million | |||||||
December 1 – 31, 2017 | 403 | $114.32 | 403 | $ | 477.4 | million | |||||||
1,304 | 1,304 |
(1) | Effective February 9, 2017, our Board authorized the repurchase of approximately $640.9 million of our common stock, in addition to the $359.1 million of our common stock remaining available for repurchase under the previous share repurchase program, for a total repurchase authorization of up to $1.0 billion of our common stock. |
(2) | Effective February 8, 2018, our Board authorized the repurchase of approximately $585.8 million of our common stock, in addition to the $414.2 million of our common stock remaining available for repurchase under the previous share repurchase program, for a total repurchase authorization of up to $1.0 billion of our common stock. The share repurchase program has no expiration date. Purchases made under the program could be effected through open market transactions, block purchases, accelerated share repurchase agreements or other negotiated transactions. |
12/31/12 | 12/31/13 | 12/31/14 | 12/31/15 | 12/31/16 | 12/31/17 | |||||||||||||
VeriSign, Inc | $ | 100 | $ | 154 | $ | 147 | $ | 225 | $ | 196 | $ | 295 | ||||||
S&P 500 Index | $ | 100 | $ | 132 | $ | 150 | $ | 153 | $ | 171 | $ | 208 | ||||||
S&P 500 Information Technology Index | $ | 100 | $ | 128 | $ | 154 | $ | 163 | $ | 186 | $ | 258 |
ITEM 6. | SELECTED FINANCIAL DATA |
Year Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 (1) | |||||||||||||||
Revenues | $ | 1,165 | $ | 1,142 | $ | 1,059 | $ | 1,010 | $ | 965 | |||||||||
Operating income | $ | 708 | $ | 687 | $ | 606 | $ | 564 | $ | 528 | |||||||||
Income from continuing operations | $ | 457 | $ | 441 | $ | 375 | $ | 355 | $ | 544 | |||||||||
Income from continuing operations per share: | |||||||||||||||||||
Basic | $ | 4.56 | $ | 4.12 | $ | 3.29 | $ | 2.80 | $ | 3.77 | |||||||||
Diluted | $ | 3.68 | $ | 3.42 | $ | 2.82 | $ | 2.52 | $ | 3.49 |
(1) | Income from continuing operations for 2013 includes a $375.3 million income tax benefit related to a worthless stock deduction, net of valuation allowances, and accrual for uncertain tax positions, partially offset by $167.1 million of income tax expense related to the repatriation of cash held by foreign subsidiaries. |
As of December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Cash, cash equivalents and marketable securities (1) | $ | 2,415 | $ | 1,798 | $ | 1,915 | $ | 1,425 | $ | 1,723 | |||||||||
Total assets (1) | $ | 2,941 | $ | 2,335 | $ | 2,358 | $ | 1,901 | $ | 2,249 | |||||||||
Deferred revenues | $ | 999 | $ | 976 | $ | 961 | $ | 890 | $ | 856 | |||||||||
Subordinated Convertible Debentures, including contingent interest derivative | $ | 628 | $ | 630 | $ | 634 | $ | 621 | $ | 613 | |||||||||
Long-term debt (1) | $ | 1,783 | $ | 1,237 | $ | 1,235 | $ | 740 | $ | 739 |
(1) | The increase in Long-term debt from 2016 to 2017 was due to the issuance of $550.0 million aggregate principal amount of 4.75% senior unsecured notes due 2027. The increase in Long-term debt from 2014 to 2015 was due to the issuance of $500.0 million aggregate principal amount of 5.25% senior unsecured notes due 2025. The proceeds from these senior notes issuances resulted in the increase in cash, cash equivalents and marketable securities as well as total assets in the same periods. |
• | We recorded revenues of $1,165.1 million in 2017, which represents an increase of 2% compared to 2016. |
• | We recorded operating income of $707.7 million during 2017, which represents an increase of 3% as compared to 2016. |
• | We finished 2017 with 146.4 million .com and .net registrations in the domain name base, which represents a 3% increase from December 31, 2016. |
• | The final .com and .net renewal rate for the third quarter of 2017 was 74.4% compared with 73.0% for the same quarter in 2016. Renewal rates are not fully measurable until 45 days after the end of the quarter. |
• | We repurchased 6.3 million shares of our common stock for an aggregate cost of $592.7 million in 2017. As of December 31, 2017, there was $477.4 million remaining for future share repurchases under the share repurchase program. |
• | Through February 8, 2018, we repurchased an additional 0.6 million shares for $63.2 million under our share repurchase program. Effective February 8, 2018, our Board authorized the repurchase of approximately $585.8 million of our common stock, in addition to the $414.2 million of our common stock remaining available for repurchase under the previous share repurchase program, for a total repurchase authorization of up to $1.0 billion of our common stock. |
• | We generated cash flows from operating activities of $702.8 million in 2017, which represents an increase of 1% as compared to 2016. |
• | On April 1, 2017, we completed the sale of our iDefense business, which resulted in a pre-tax gain of approximately $10.4 million. |
• | On June 28, 2017, we entered into a renewal of the .net Registry Agreement with ICANN, pursuant to which we will remain the sole registry operator of the .net TLD through June 30, 2023. |
• | On July 5, 2017, we issued $550.0 million of 4.75% Senior Notes due July 15, 2027. The proceeds are being used for general corporate purposes, including, but not limited to, the repurchase of shares under our share repurchase program. |
• | We increased the annual fee for a .net domain name registration from $8.20 to $9.02, effective February 1, 2018. |
Year Ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | ||
Costs and expenses: | ||||||||
Cost of revenues | 16.6 | 17.4 | 18.2 | |||||
Sales and marketing | 7.0 | 7.0 | 8.5 | |||||
Research and development | 4.5 | 5.2 | 6.0 | |||||
General and administrative | 11.2 | 10.3 | 10.1 | |||||
Total costs and expenses | 39.3 | 39.9 | 42.8 | |||||
Operating income | 60.7 | 60.1 | 57.2 | |||||
Interest expense | (11.7 | ) | (10.1 | ) | (10.2 | ) | ||
Non-operating income (loss), net | 2.4 | 0.9 | (1.0 | ) | ||||
Income before income taxes | 51.4 | 50.9 | 46.0 | |||||
Income tax expense | (12.2 | ) | (12.3 | ) | (10.6 | ) | ||
Net income | 39.2 | % | 38.6 | % | 35.4 | % |
Year Ended December 31, | ||||||||||||||||||
2017 | % Change | 2016 | % Change | 2015 | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Revenues | $ | 1,165,095 | 2 | % | $ | 1,142,167 | 8 | % | $ | 1,059,366 |
As of December 31, | ||||||||||||
2017 | % Change | 2016 | % Change | 2015 | ||||||||
Domain name base for .com and .net | 146.4 million | 3 | % | 142.2 million | 2 | % | 139.8 million |
Year Ended December 31, | |||||||||||||||||
2017 | % Change | 2016 | % Change | 2015 | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
U.S | $ | 694,759 | 4 | % | $ | 667,301 | 4 | % | $ | 639,170 | |||||||
EMEA | 211,349 | 2 | % | 207,474 | 7 | % | 193,623 | ||||||||||
China | 106,526 | (16 | )% | 127,298 | 53 | % | 83,456 | ||||||||||
Other | 152,461 | 9 | % | 140,094 | (2 | )% | 143,117 | ||||||||||
Total revenues | $ | 1,165,095 | 2 | % | $ | 1,142,167 | 8 | % | $ | 1,059,366 |
Year Ended December 31, | |||||||||||||||||
2017 | % Change | 2016 | % Change | 2015 | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
Cost of revenues | $ | 193,326 | (2 | )% | $ | 198,242 | 3 | % | $ | 192,788 |
Year Ended December 31, | |||||||||||||||||
2017 | % Change | 2016 | % Change | 2015 | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
Sales and marketing | $ | 81,951 | 2 | % | $ | 80,250 | (11 | )% | $ | 90,184 |
Year Ended December 31, | |||||||||||||||||
2017 | % Change | 2016 | % Change | 2015 | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
Research and development | $ | 52,342 | (11 | )% | $ | 59,100 | (7 | )% | $ | 63,718 |
Year Ended December 31, | |||||||||||||||||
2017 | % Change | 2016 | % Change | 2015 | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
General and administrative | $ | 129,754 | 10 | % | $ | 118,003 | 11 | % | $ | 106,730 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Income tax expense | $ | 141,764 | $ | 140,528 | $ | 112,414 | |||||
Effective tax rate | 24 | % | 24 | % | 23 | % |
As of December 31, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Cash and cash equivalents | $ | 465,851 | $ | 231,945 | |||
Marketable securities | 1,948,900 | 1,565,962 | |||||
Total | $ | 2,414,751 | $ | 1,797,907 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(In thousands) | |||||||||||
Net cash provided by operating activities | $ | 702,761 | $ | 693,007 | $ | 669,946 | |||||
Net cash used in investing activities | (405,076 | ) | (40,399 | ) | (496,899 | ) | |||||
Net cash used in financing activities | (65,073 | ) | (648,821 | ) | (136,242 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | 1,294 | (501 | ) | 246 | |||||||
Net increase in cash and cash equivalents | $ | 233,906 | $ | 3,286 | $ | 37,051 |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
2017 | |||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||
March 31 | June 30 (2) | September 30 | December 31 | December 31, | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||
Revenues | $ | 288,614 | $ | 288,552 | $ | 292,428 | $ | 295,501 | $ | 1,165,095 | |||||||||
Gross Profit | $ | 237,945 | $ | 240,908 | $ | 245,095 | $ | 247,821 | $ | 971,769 | |||||||||
Operating Income | $ | 175,271 | $ | 174,960 | $ | 181,059 | $ | 176,432 | $ | 707,722 | |||||||||
Net income | $ | 116,412 | $ | 123,100 | $ | 114,899 | $ | 102,837 | $ | 457,248 | |||||||||
Earnings per share: | |||||||||||||||||||
Basic | $ | 1.14 | $ | 1.22 | $ | 1.15 | $ | 1.05 | $ | 4.56 | |||||||||
Diluted (1) | $ | 0.94 | $ | 0.99 | $ | 0.93 | $ | 0.83 | $ | 3.68 |
(1) | Earnings per share for the year is computed independently and may not equal the sum of the quarterly earnings per share. |
(2) | Results for the quarter ended June 30, 2017 include a $10.6 million pre-tax gain recognized on the sale of the iDefense business. |
2016 | |||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | December 31, | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||
Revenues | $ | 281,876 | $ | 286,466 | $ | 287,554 | $ | 286,271 | $ | 1,142,167 | |||||||||
Gross Profit | $ | 231,294 | $ | 237,713 | $ | 237,747 | $ | 237,171 | $ | 943,925 | |||||||||
Operating Income | $ | 166,767 | $ | 176,267 | $ | 174,776 | $ | 168,762 | $ | 686,572 | |||||||||
Net income | $ | 107,456 | $ | 113,210 | $ | 114,427 | $ | 105,552 | $ | 440,645 | |||||||||
Earnings per share: | |||||||||||||||||||
Basic | $ | 0.98 | $ | 1.05 | $ | 1.08 | $ | 1.01 | $ | 4.12 | |||||||||
Diluted (1) | $ | 0.82 | $ | 0.87 | $ | 0.90 | $ | 0.84 | $ | 3.42 |
(1) | Earnings per share for the year is computed independently and may not equal the sum of the quarterly earnings per share. |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
ITEM 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES |
• | Reports of Independent Registered Public Accounting Firm |
• | Consolidated Balance Sheets as of December 31, 2017 and 2016 |
• | Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2017, 2016, and 2015 |
• | Consolidated Statements of Stockholders’ Deficit for the Years Ended December 31, 2017, 2016, and 2015 |
• | Consolidated Statements of Cash Flows for the Years Ended December 31, 2017, 2016, and 2015 |
• | Notes to Consolidated Financial Statements |
Financial statement schedules are omitted because the information called for is not material or is shown either in the consolidated financial statements or the notes thereto. |
Incorporated by Reference | |||||||||||
Exhibit Number | Exhibit Description | Form | Date | Number | Filed Herewith | ||||||
8-K | 3/8/00 | 2.1 | |||||||||
10-K | 2/17/17 | 3.01 | |||||||||
X | |||||||||||
8-K/A | 9/6/07 | 4.1 | |||||||||
8-K | 4/17/13 | 4.1 | |||||||||
8-K | 3/30/15 | 4.1 | |||||||||
8-K | 7/5/17 | 4.1 | |||||||||
DEF 14A | 4/12/17 | Appendix A | |||||||||
Incorporated by Reference | |||||||||||
Exhibit Number | Exhibit Description | Form | Date | Number | Filed Herewith | ||||||
10-K | 7/12/07 | 10.27 | |||||||||
DEF 14A | 4/8/15 | Appendix A | |||||||||
10-Q | 7/27/17 | 10.01 | |||||||||
10-Q | 7/27/17 | 10.02 | |||||||||
8-K | 9/7/11 | 10.01 | |||||||||
10-Q | 7/27/12 | 10.03 | |||||||||
8-K | 11/30/12 | 10.1 | |||||||||
8-K | 11/30/12 | 10.2 | |||||||||
10-Q | 4/25/13 | 10.02 | |||||||||
10-Q | 4/28/16 | 10.01 | |||||||||
8-K | 4/1/15 | 99.1 | |||||||||
10-K | 2/19/16 | 10.70 | |||||||||
8-K | 10/20/16 | 10.1 | |||||||||
8-K | 10/20/16 | 10.2 | |||||||||
8-K | 10/20/16 | 10.3 | |||||||||
DEF 14A | 4/29/16 | Appendix A | |||||||||
8-K | 6/28/17 | 10.1 | |||||||||
X | |||||||||||
X | |||||||||||
Incorporated by Reference | |||||||||||
Exhibit Number | Exhibit Description | Form | Date | Number | Filed Herewith | ||||||
X | |||||||||||
X | |||||||||||
X | |||||||||||
X | |||||||||||
X | |||||||||||
101.INS | XBRL Instance Document. | X | |||||||||
101.SCH | XBRL Taxonomy Extension Schema. | X | |||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase. | X | |||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase. | X | |||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase. | X | |||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase. | X |
* | As contemplated by SEC Release No. 33-8212, these exhibits are furnished with this Annual Report on Form 10-K and are not deemed filed with the Securities and Exchange Commission and are not incorporated by reference in any filing of VeriSign, Inc. under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in such filings. |
+ | Indicates a management contract or compensatory plan or arrangement. |
ITEM 16. | 10-K SUMMARY |
Financial Statement Description | Page |
December 31, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 465,851 | $ | 231,945 | |||
Marketable securities | 1,948,900 | 1,565,962 | |||||
Other current assets | 31,402 | 44,435 | |||||
Total current assets | 2,446,153 | 1,842,342 | |||||
Property and equipment, net | 263,513 | 266,125 | |||||
Goodwill | 52,527 | 52,527 | |||||
Deferred tax assets | 15,392 | 9,385 | |||||
Deposits to acquire intangible assets | 145,000 | 145,000 | |||||
Other long-term assets | 18,603 | 19,193 | |||||
Total long-term assets | 495,035 | 492,230 | |||||
Total assets | $ | 2,941,188 | $ | 2,334,572 | |||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 219,603 | $ | 203,920 | |||
Deferred revenues | 713,309 | 688,265 | |||||
Subordinated convertible debentures, including contingent interest derivative | 627,616 | 629,764 | |||||
Total current liabilities | 1,560,528 | 1,521,949 | |||||
Long-term deferred revenues | 286,097 | 287,424 | |||||
Senior notes | 1,782,529 | 1,237,189 | |||||
Deferred tax liabilities | 444,108 | 371,433 | |||||
Other long-term tax liabilities | 128,197 | 117,172 | |||||
Total long-term liabilities | 2,640,931 | 2,013,218 | |||||
Total liabilities | 4,201,459 | 3,535,167 | |||||
Commitments and contingencies | |||||||
Stockholders’ deficit: | |||||||
Preferred stock—par value $.001 per share; Authorized shares: 5,000; Issued and outstanding shares: none | — | — | |||||
Common stock—par value $.001 per share; Authorized shares: 1,000,000; Issued shares: 325,218 at December 31, 2017 and 324,118 at December 31, 2016; Outstanding shares: 97,591 at December 31, 2017 and 103,091 at December 31, 2016 | 325 | 324 | |||||
Additional paid-in capital | 16,437,135 | 16,987,488 | |||||
Accumulated deficit | (17,694,790 | ) | (18,184,954 | ) | |||
Accumulated other comprehensive loss | (2,941 | ) | (3,453 | ) | |||
Total stockholders’ deficit | (1,260,271 | ) | (1,200,595 | ) | |||
Total liabilities and stockholders’ deficit | $ | 2,941,188 | $ | 2,334,572 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Revenues | $ | 1,165,095 | $ | 1,142,167 | $ | 1,059,366 | |||||
Costs and expenses: | |||||||||||
Cost of revenues | 193,326 | 198,242 | 192,788 | ||||||||
Sales and marketing | 81,951 | 80,250 | 90,184 | ||||||||
Research and development | 52,342 | 59,100 | 63,718 | ||||||||
General and administrative | 129,754 | 118,003 | 106,730 | ||||||||
Total costs and expenses | 457,373 | 455,595 | 453,420 | ||||||||
Operating income | 707,722 | 686,572 | 605,946 | ||||||||
Interest expense | (136,336 | ) | (115,564 | ) | (107,631 | ) | |||||
Non-operating income (loss), net | 27,626 | 10,165 | (10,665 | ) | |||||||
Income before income taxes | 599,012 | 581,173 | 487,650 | ||||||||
Income tax expense | (141,764 | ) | (140,528 | ) | (112,414 | ) | |||||
Net income | 457,248 | 440,645 | 375,236 | ||||||||
Realized foreign currency translation adjustments, included in net income | 530 | 85 | (291 | ) | |||||||
Unrealized gain (loss) on investments | 385 | 533 | (519 | ) | |||||||
Realized gain on investments, included in net income | (403 | ) | (78 | ) | (185 | ) | |||||
Other comprehensive income (loss) | 512 | 540 | (995 | ) | |||||||
Comprehensive income | $ | 457,760 | $ | 441,185 | $ | 374,241 | |||||
Earnings per share: | |||||||||||
Basic | $ | 4.56 | $ | 4.12 | $ | 3.29 | |||||
Diluted | $ | 3.68 | $ | 3.42 | $ | 2.82 | |||||
Shares used to compute earnings per share | |||||||||||
Basic | 100,325 | 107,001 | 114,155 | ||||||||
Diluted | 124,180 | 128,833 | 133,031 |
Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders' Deficit | ||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||
Balance at December 31, 2014 | 118,452 | $ | 322 | $ | 18,120,045 | $ | (19,000,835 | ) | $ | (2,998 | ) | $ | (883,466 | ) | |||||||||
Net income | — | — | — | 375,236 | — | 375,236 | |||||||||||||||||
Other comprehensive loss | — | — | — | — | (995 | ) | (995 | ) | |||||||||||||||
Issuance of common stock under stock plans | 1,291 | 1 | 14,689 | — | — | 14,690 | |||||||||||||||||
Stock-based compensation | — | — | 48,793 | — | — | 48,793 | |||||||||||||||||
Net excess income tax benefits associated with stock-based compensation | — | — | 18,464 | — | — | 18,464 | |||||||||||||||||
Repurchase of common stock | (9,671 | ) | — | (643,169 | ) | — | — | (643,169 | ) | ||||||||||||||
Balance at December 31, 2015 | 110,072 | 323 | 17,558,822 | (18,625,599 | ) | (3,993 | ) | (1,070,447 | ) | ||||||||||||||
Net income | — | — | — | 440,645 | — | 440,645 | |||||||||||||||||
Other comprehensive income | — | — | — | — | 540 | 540 | |||||||||||||||||
Issuance of common stock under stock plans | 1,128 | 1 | 13,669 | — | — | 13,670 | |||||||||||||||||
Stock-based compensation | — | — | 52,430 | — | — | 52,430 | |||||||||||||||||
Net excess income tax benefits associated with stock-based compensation | — | — | 25,058 | — | — | 25,058 | |||||||||||||||||
Repurchase of common stock | (8,109 | ) | — | (662,491 | ) | — | — | (662,491 | ) | ||||||||||||||
Balance at December 31, 2016 | 103,091 | 324 | 16,987,488 | (18,184,954 | ) | (3,453 | ) | (1,200,595 | ) | ||||||||||||||
Cumulative adjustment upon adoption of ASU 2016-09 | — | — | 2,544 | 32,916 | — | 35,460 | |||||||||||||||||
Net income | — | — | — | 457,248 | — | 457,248 | |||||||||||||||||
Other comprehensive income | — | — | — | — | 512 | 512 | |||||||||||||||||
Issuance of common stock under stock plans | 1,100 | 1 | 12,914 | — | — | 12,915 | |||||||||||||||||
Stock-based compensation | — | — | 55,362 | — | — | 55,362 | |||||||||||||||||
Repurchase of common stock | (6,600 | ) | — | (621,173 | ) | — | — | (621,173 | ) | ||||||||||||||
Balance at December 31, 2017 | 97,591 | $ | 325 | $ | 16,437,135 | $ | (17,694,790 | ) | $ | (2,941 | ) | $ | (1,260,271 | ) |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 457,248 | $ | 440,645 | $ | 375,236 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation of property and equipment | 49,878 | 58,167 | 61,491 | ||||||||
Stock-based compensation | 52,907 | 50,044 | 46,075 | ||||||||
Gain on sale of business | (10,421 | ) | — | — | |||||||
Unrealized loss (gain) on contingent interest derivative on Subordinated Convertible Debentures | 893 | (2,402 | ) | 14,130 | |||||||
Payment of contingent interest | (15,232 | ) | (13,385 | ) | (10,759 | ) | |||||
Amortization of debt discount and issuance costs | 14,678 | 13,411 | 12,292 | ||||||||
Amortization of discount on investments in debt securities | (14,860 | ) | (5,527 | ) | (1,843 | ) | |||||
Other, net | (67 | ) | 1,740 | 62 | |||||||
Changes in operating assets and liabilities | |||||||||||
Prepaid expenses and other assets | 13,775 | 8,109 | (1,067 | ) | |||||||
Accounts payable and accrued liabilities | 15,483 | 40,244 | 21,013 | ||||||||
Deferred revenues | 25,348 | 14,347 | 70,988 | ||||||||
Net deferred income taxes and other long-term tax liabilities | 113,131 | 87,614 | 82,328 | ||||||||
Net cash provided by operating activities | 702,761 | 693,007 | 669,946 | ||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from maturities and sales of marketable securities | 4,562,161 | 3,817,899 | 2,767,027 | ||||||||
Purchases of marketable securities | (4,929,834 | ) | (3,691,057 | ) | (3,219,329 | ) | |||||
Purchases of property and equipment | (49,499 | ) | (26,574 | ) | (40,656 | ) | |||||
Deposits to acquire intangible assets | — | (143,000 | ) | — | |||||||
Other investing activities | 12,096 | 2,333 | (3,941 | ) | |||||||
Net cash used in investing activities | (405,076 | ) | (40,399 | ) | (496,899 | ) | |||||
Cash flows from financing activities: | |||||||||||
Proceeds from employee stock purchase plan | 12,915 | 13,670 | 14,690 | ||||||||
Repurchases of common stock | (621,173 | ) | (662,491 | ) | (643,169 | ) | |||||
Proceeds from senior notes, net of issuance costs | 543,185 | — | 492,237 | ||||||||
Net cash used in financing activities | (65,073 | ) | (648,821 | ) | (136,242 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | 1,294 | (501 | ) | 246 | |||||||
Net increase in cash and cash equivalents | 233,906 | 3,286 | 37,051 | ||||||||
Cash and cash equivalents at beginning of period | 231,945 | 228,659 | 191,608 | ||||||||
Cash and cash equivalents at end of period | $ | 465,851 | $ | 231,945 | $ | 228,659 | |||||
Supplemental cash flow disclosures: | |||||||||||
Cash paid for interest | $ | 117,234 | $ | 115,544 | $ | 99,473 | |||||
Cash paid for income taxes, net of refunds received | $ | 28,294 | $ | 14,303 | $ | 39,723 |
• | Persuasive evidence of an arrangement exists: It is the Company’s customary practice to have a written contract, signed by both the customer and Verisign or a service order form from those customers who have previously negotiated a standard master services agreement with Verisign. |
• | Delivery has occurred or services have been rendered: The Company’s services are usually delivered continuously from service activation date through the term of the arrangement. |
• | The fee is fixed or determinable: Substantially all of the Company’s revenue arrangements have fixed or determinable fees. |
• | Collectability is reasonably assured: Collectability is assessed on a customer-by-customer basis. Verisign typically sells to customers for whom there is a history of successful collection. The majority of customers either maintain a deposit with Verisign or provide an irrevocable letter of credit in excess of the amounts owed. New customers are subjected to a credit review process that evaluates the customer’s financial condition and, ultimately, their ability to pay. If Verisign determines from the outset of an arrangement that collectability is not probable based upon its credit review process, revenues are recognized as cash is collected. |
• | Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. |
• | Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
• | Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. |
As of December 31, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Cash | $ | 135,092 | $ | 39,183 | |||
Time deposits | 3,682 | 4,632 | |||||
Money market funds (Level 1) | 116,068 | 134,790 | |||||
Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies (Level 1) | 2,169,172 | 1,626,764 | |||||
Equity securities of public companies (Level 1) | 25 | 2,174 | |||||
Total | $ | 2,424,039 | $ | 1,807,543 | |||
Included in Cash and cash equivalents | $ | 465,851 | $ | 231,945 | |||
Included in Marketable securities | 1,948,900 | 1,565,962 | |||||
Included in Other assets (Restricted cash) | 9,288 | 9,636 | |||||
Total | $ | 2,424,039 | $ | 1,807,543 |
As of December 31, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Prepaid expenses | $ | 15,787 | $ | 14,385 | |||
Accounts receivable, net | 5,111 | 13,051 | |||||
Income taxes receivable | 6,347 | 15,328 | |||||
Other | 4,157 | 1,671 | |||||
Total other current assets | $ | 31,402 | $ | 44,435 |
As of December 31, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Land | $ | 31,141 | $ | 31,141 | |||
Buildings and building improvements | 246,654 | 246,237 | |||||
Computer equipment and software | 462,469 | 441,732 | |||||
Capital work in progress | 4,024 | 4,246 | |||||
Office equipment and furniture | 6,472 | 6,203 | |||||
Leasehold improvements | 1,403 | 1,350 | |||||
Total cost | 752,163 | 730,909 | |||||
Less: accumulated depreciation | (488,650 | ) | (464,784 | ) | |||
Total property and equipment, net | $ | 263,513 | $ | 266,125 |
As of December 31, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Goodwill, gross | $ | 1,537,843 | $ | 1,537,843 | |||
Accumulated goodwill impairment | (1,485,316 | ) | (1,485,316 | ) | |||
Total goodwill | $ | 52,527 | $ | 52,527 |
As of December 31, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Long-term restricted cash | 9,288 | 9,636 | |||||
Other taxes receivable | 5,673 | 5,673 | |||||
Long-term prepaid expenses and other assets | 3,642 | 3,884 | |||||
Total other long-term assets | $ | 18,603 | $ | 19,193 |
As of December 31, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Accounts payable | $ | 20,923 | $ | 19,455 | |||
Accrued employee compensation | 51,481 | 61,426 | |||||
Customer deposits, net | 63,617 | 52,173 | |||||
Interest Payable | 47,357 | 27,701 | |||||
Taxes payable and other tax liabilities | 13,477 | 23,144 | |||||
Other accrued liabilities | 22,748 | 20,021 | |||||
Total accounts payable and accrued liabilities | $ | 219,603 | $ | 203,920 |
As of December 31, | ||||||||||||
2017 | 2016 | |||||||||||
Issuance Date | Maturity Date | Interest Rate | Principal | |||||||||
Senior notes due 2023 | April 16, 2013 | May 1, 2023 | 4.625 | % | $ | 750,000 | $ | 750,000 | ||||
Senior notes due 2025 | March 27, 2015 | April 1, 2025 | 5.250 | % | 500,000 | 500,000 | ||||||
Senior notes due 2027 | July 5, 2017 | July 15, 2027 | 4.750 | % | 550,000 | — | ||||||
Unamortized issuance costs | (17,471 | ) | (12,811 | ) | ||||||||
Total senior notes | $ | 1,782,529 | $ | 1,237,189 |
Principal value of Subordinated Convertible Debentures | $ | 1,250,000 | ||
Less: Issuance costs | (25,777 | ) | ||
Net proceeds, Subordinated Convertible Debentures | $ | 1,224,223 | ||
Amounts recognized at issuance: | ||||
Subordinated Convertible Debentures, including contingent interest derivative (net of issuance costs of $11,328) | $ | 546,915 | ||
Additional paid-in capital | 418,996 | |||
Long-term deferred tax liabilities | 267,225 | |||
Non-operating loss | (8,913 | ) | ||
Net proceeds, Subordinated Convertible Debentures | $ | 1,224,223 |
As of December 31, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Debt discount upon issuance (net of issuance costs of $14,449) | $ | 686,221 | $ | 686,221 | |||
Deferred taxes associated with the debt discount upon issuance | (267,225 | ) | (267,225 | ) | |||
Carrying amount of equity component | $ | 418,996 | $ | 418,996 | |||
Principal amount of Subordinated Convertible Debentures | $ | 1,250,000 | $ | 1,250,000 | |||
Unamortized discount of liability component | (612,303 | ) | (624,315 | ) | |||
Unamortized debt issuance costs associated with the liability component | (10,081 | ) | (10,260 | ) | |||
Carrying amount of liability component | 627,616 | 615,425 | |||||
Contingent interest derivative | — | 14,339 | |||||
Subordinated Convertible Debentures, including contingent interest derivative | $ | 627,616 | $ | 629,764 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(In thousands) | |||||||||||
Contractual interest on Subordinated Convertible Debentures | $ | 47,432 | $ | 40,625 | $ | 40,625 | |||||
Contractual interest on Senior Notes | 73,638 | 60,938 | 54,667 | ||||||||
Amortization of debt discount on the Subordinated Convertible Debentures | 12,012 | 11,094 | 10,218 | ||||||||
Amortization of debt issuance costs and other interest expense | 3,254 | 2,907 | 2,121 | ||||||||
Total interest expense | $ | 136,336 | $ | 115,564 | $ | 107,631 |
2017 | 2016 | 2015 | |||||||||||||||||||||
Shares | Average Price | Shares | Average Price | Shares | Average Price | ||||||||||||||||||
(In thousands, except average price amounts) | |||||||||||||||||||||||
Total repurchases under the repurchase plans | 6,265 | $ | 94.59 | 7,789 | $ | 81.73 | 9,338 | $ | 66.59 | ||||||||||||||
Total repurchases for tax withholdings | 335 | $ | 85.27 | 320 | $ | 80.74 | 333 | $ | 64.03 | ||||||||||||||
Total repurchases | 6,600 | $ | 94.12 | 8,109 | $ | 81.70 | 9,671 | $ | 66.50 | ||||||||||||||
Total costs | $ | 621,173 | $ | 662,491 | $ | 643,169 |
Foreign Currency Translation Adjustments Loss | Unrealized (Loss) Gain On Investments | Total Accumulated Other Comprehensive Loss | |||||||||
(In thousands) | |||||||||||
Balance, December 31, 2015 | $ | (3,451 | ) | $ | (542 | ) | $ | (3,993 | ) | ||
Changes | 85 | 455 | 540 | ||||||||
Balance, December 31, 2016 | (3,366 | ) | (87 | ) | (3,453 | ) | |||||
Changes | 530 | (18 | ) | 512 | |||||||
Balance, December 31, 2017 | $ | (2,836 | ) | $ | (105 | ) | $ | (2,941 | ) |
Year Ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
(In thousands) | ||||||||
Weighted-average shares of common stock outstanding | 100,325 | 107,001 | 114,155 | |||||
Weighted-average potential shares of common stock outstanding: | ||||||||
Conversion spread related to Subordinated Convertible Debentures | 23,247 | 21,074 | 18,047 | |||||
Unvested RSUs, and ESPP | 608 | 758 | 829 | |||||
Shares used to compute diluted earnings per share | 124,180 | 128,833 | 133,031 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(In thousands) | |||||||||||
U.S | $ | 694,759 | $ | 667,301 | $ | 639,170 | |||||
EMEA | 211,349 | 207,474 | 193,623 | ||||||||
China | 106,526 | 127,298 | 83,456 | ||||||||
Other | 152,461 | 140,094 | 143,117 | ||||||||
Total revenues | $ | 1,165,095 | $ | 1,142,167 | $ | 1,059,366 |
As of December 31, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
U.S. | $ | 258,231 | $ | 261,837 | |||
Other | 5,282 | 4,288 | |||||
Total property and equipment, net | $ | 263,513 | $ | 266,125 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(In thousands) | |||||||||||
Cost of revenues | $ | 7,030 | $ | 7,253 | $ | 7,009 | |||||
Sales and marketing | 5,688 | 5,738 | 6,763 | ||||||||
Research and development | 6,113 | 6,739 | 6,488 | ||||||||
General and administrative | 34,076 | 30,314 | 25,815 | ||||||||
Total stock-based compensation | $ | 52,907 | $ | 50,044 | $ | 46,075 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(In thousands) | |||||||||||
RSUs | $ | 38,087 | $ | 37,325 | $ | 36,664 | |||||
Performance-based RSUs | 13,270 | 11,512 | 8,078 | ||||||||
ESPP | 4,005 | 3,593 | 4,051 | ||||||||
Capitalization (Included in Property and equipment, net) | (2,455 | ) | (2,386 | ) | (2,718 | ) | |||||
Total stock-based compensation expenses | $ | 52,907 | $ | 50,044 | $ | 46,075 |
Year Ended December 31, | ||||||||||||||||||||
2017 | 2016 | 2015 | ||||||||||||||||||
Shares | Weighted-Average Grant-Date Fair Value | Shares | Weighted-Average Grant-Date Fair Value | Shares | Weighted-Average Grant-Date Fair Value | |||||||||||||||
(Shares in thousands) | ||||||||||||||||||||
Unvested at beginning of period | 1,846 | $ | 66.30 | 2,110 | $ | 54.77 | 2,179 | $ | 46.36 | |||||||||||
Granted | 732 | 79.94 | 760 | 78.58 | 1,075 | 61.74 | ||||||||||||||
Vested and settled | (885 | ) | 61.75 | (873 | ) | 49.95 | (932 | ) | 43.92 | |||||||||||
Forfeited | (105 | ) | 72.90 | (151 | ) | 61.57 | (212 | ) | 51.47 | |||||||||||
1,588 | $ | 74.69 | 1,846 | $ | 66.30 | 2,110 | $ | 54.77 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(In thousands) | |||||||||||
Interest income | $ | 17,944 | $ | 6,191 | $ | 2,128 | |||||
Gain on sale of business | 10,421 | — | — | ||||||||
Unrealized (loss) gain on contingent interest derivative on Subordinated Convertible Debentures | (893 | ) | 2,402 | (14,130 | ) | ||||||
Other, net | 154 | 1,572 | 1,337 | ||||||||
Total non-operating income (loss), net | $ | 27,626 | $ | 10,165 | $ | (10,665 | ) |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(In thousands) | |||||||||||
United States | $ | 313,351 | $ | 299,304 | $ | 248,932 | |||||
Foreign | 285,661 | 281,869 | 238,718 | ||||||||
Total income before income taxes | $ | 599,012 | $ | 581,173 | $ | 487,650 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(In thousands) | |||||||||||
Current expense: | |||||||||||
Federal | $ | 16,870 | $ | 34,842 | $ | 13,601 | |||||
State | 294 | 240 | 156 | ||||||||
Foreign, including withholding tax | 15,539 | 19,268 | 17,241 | ||||||||
32,703 | 54,350 | 30,998 | |||||||||
Deferred expense (benefit): | |||||||||||
Federal | 90,113 | 64,301 | 65,168 | ||||||||
State | 19,654 | 21,492 | 15,767 | ||||||||
Foreign | (706 | ) | 385 | 481 | |||||||
109,061 | 86,178 | 81,416 | |||||||||
Total income tax expense | $ | 141,764 | $ | 140,528 | $ | 112,414 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(In thousands) | |||||||||||
Income tax expense at federal statutory rate | $ | 209,654 | $ | 203,410 | $ | 170,677 | |||||
State taxes, net of federal benefit | 13,029 | 14,517 | 9,616 | ||||||||
Differences between statutory rate and foreign effective tax rate | (83,808 | ) | (79,087 | ) | (66,238 | ) | |||||
U.S. federal tax rate change | (186,800 | ) | — | — | |||||||
U.S. tax on accumulated foreign earnings, net of foreign tax credits | 162,353 | — | — | ||||||||
Foreign withholding tax on unremitted foreign earnings, net of foreign tax credits | 33,619 | — | — | ||||||||
Other | (6,283 | ) | 1,688 | (1,641 | ) | ||||||
Total income tax expense | $ | 141,764 | $ | 140,528 | $ | 112,414 |
As of December 31, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Deferred tax assets: | |||||||
Net operating loss carryforwards | $ | 70,587 | $ | 46,879 | |||
Deductible goodwill and intangible assets | 1,192 | 10,473 | |||||
Tax credit carryforwards | 52,659 | 59,337 | |||||
Deferred revenue, accruals and reserves | 77,869 | 114,548 | |||||
Capital loss carryforwards | 778,430 | 1,161,772 | |||||
Other | 5,584 | 4,791 | |||||
Total deferred tax assets | 986,321 | 1,397,800 | |||||
Valuation allowance | (783,725 | ) | (1,162,101 | ) | |||
Net deferred tax assets | 202,596 | 235,699 | |||||
Deferred tax liabilities: | |||||||
Property and equipment | (1,577 | ) | (4,212 | ) | |||
U.S. tax on accumulated foreign earnings | (162,912 | ) | — | ||||
Foreign withholding tax on unremitted earnings | (33,619 | ) | — | ||||
Subordinated Convertible debentures | (430,088 | ) | (590,921 | ) | |||
Other | (3,116 | ) | (2,614 | ) | |||
Total deferred tax liabilities | (631,312 | ) | (597,747 | ) | |||
Total net deferred tax liabilities | $ | (428,716 | ) | $ | (362,048 | ) |
As of December 31, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Beginning balance | $ | 220,682 | $ | 220,280 | |||
Increases in tax positions for prior years | 3,699 | 119 | |||||
Decreases in tax positions for prior years | (144 | ) | (71 | ) | |||
Increases in tax positions for current year | 395 | 354 | |||||
Decreases in tax positions due to settlement with taxing authorities | (1,416 | ) | — | ||||
Ending balance | $ | 223,216 | $ | 220,682 |
Purchase Obligations | .tv Agreement | Senior Notes | Subordinated Convertible Debentures | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||
2018 | $ | 33,175 | $ | 5,000 | $ | 87,063 | $ | 1,279,388 | $ | 1,404,626 | |||||||||
2019 | 4,893 | 5,000 | 87,063 | — | 96,956 | ||||||||||||||
2020 | 806 | 5,000 | 87,063 | — | 92,869 | ||||||||||||||
2021 | 612 | 5,000 | 87,063 | — | 92,675 | ||||||||||||||
2022 | 301 | — | 87,063 | — | 87,364 | ||||||||||||||
Thereafter | — | — | 2,030,938 | — | 2,030,938 | ||||||||||||||
Total | $ | 39,787 | $ | 20,000 | $ | 2,466,253 | $ | 1,279,388 | $ | 3,805,428 |
By: | /S/ D. JAMES BIDZOS | |
D. James Bidzos | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) |
Signature | Title | |
/S/ D. JAMES BIDZOS | President, Chief Executive Officer, Executive Chairman and Director (Principal Executive Officer) | |
D. JAMES BIDZOS | ||
/S/ GEORGE E. KILGUSS, III | Chief Financial Officer (Principal Financial and Accounting Officer) | |
GEORGE E. KILGUSS, III | ||
/S/ KATHLEEN A. COTE | Director | |
KATHLEEN A. COTE | ||
/S/ THOMAS F. FRIST III | Director | |
THOMAS F. FRIST III | ||
/S/ JAMIE S. GORELICK | Director | |
JAMIE S. GORELICK | ||
/S/ ROGER H. MOORE | Director | |
ROGER H. MOORE | ||
/S/ LOUIS A. SIMPSON | Director | |
LOUIS A. SIMPSON | ||
/S/ TIMOTHY TOMLINSON | Director | |
TIMOTHY TOMLINSON |
Name of Subsidiary | Jurisdiction |
eNIC Cocos (Keeling) Island Pty. Ltd. | Australia |
eNIC Corporation | U.S. - Washington |
Global Registration Services Limited | United Kingdom |
The .tv Corporation International | U.S. - Delaware |
The .TV Corporation (Tuvalu) Pty Ltd. | Tuvalu |
VeriSign do Brasil Servicos para Internet Ltda | Brazil |
VeriSign Holdings Limited | Cayman Islands |
VeriSign India Private Limited | India |
VeriSign International Holdings, Inc. | U.S. - Delaware |
VeriSign Internet Services Sárl | Switzerland |
VeriSign Internet Technology Services (Beijing) Co., Ltd. | China |
VeriSign Israel Ltd. | Israel |
VeriSign Naming and Directory Services, LLC | U.S. - Delaware |
VeriSign Netherlands B.V. | Netherlands |
VeriSign Sárl | Switzerland |
VeriSign Services India Private Limited | India |
VeriSign Spain S.L. | Spain |
VeriSign Switzerland SA | Switzerland |
Whiteley Investments, Ltd. | United Kingdom |
Date: February 16, 2018 | By: | /S/ D. JAMES BIDZOS |
D. James Bidzos | ||
Chief Executive Officer | ||
(Principal Executive Officer) |
Date: February 16, 2018 | By: | /S/ GEORGE E. KILGUSS, III |
George E. Kilguss, III | ||
Chief Financial Officer | ||
(Principal Financial Officer) |
Date: February 16, 2018 | /S/ D. JAMES BIDZOS |
D. James Bidzos | |
Chief Executive Officer | |
(Principal Executive Officer) |
Date: February 16, 2018 | /S/ GEORGE E. KILGUSS, III |
George E. Kilguss, III | |
Chief Financial Officer | |
(Principal Financial Officer) |
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Document and Entity Information Document - USD ($) $ in Billions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Feb. 09, 2018 |
Jun. 30, 2017 |
|
Document And Entity Information [Abstract] | |||
Entity Registrant Name | VERISIGN INC/CA | ||
Entity Central Index Key | 0001014473 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 97,120,531 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 3.3 |
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized shares | 5,000 | 5,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 1,000,000 | 1,000,000 |
Common Stock, Shares, Issued | 325,218 | 324,118 |
Common stock, outstanding shares | 97,591 | 103,091 |
Description Of Business And Summary Of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business VeriSign, Inc. (“Verisign” or “the Company”) was incorporated in Delaware on April 12, 1995. The Company has one reportable segment, which consists of Registry Services and Security Services. Registry Services ensure the security, stability and resiliency of key internet infrastructure and services, including the .com and .net domains, two of the Internet’s root servers, and operation of the root-zone maintainer functions for the core of the internet’s Domain Name System (“DNS”). Security Services provides infrastructure assurance services consisting of Distributed Denial of Services (“DDoS”) Protection Services, and Managed DNS Services. On April 1, 2017, the Company completed the sale of its iDefense business. Basis of Presentation The accompanying consolidated financial statements of Verisign and its subsidiaries have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”). All significant intercompany accounts and transactions have been eliminated. The preparation of these consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Reclassifications Certain reclassifications have been made to prior period amounts to conform to current period presentation. Such reclassifications have no effect on net income as previously reported. Adoption of New Accounting Standards Effective January 1, 2017, the Company adopted Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting, issued by the Financial Accounting Standards Board (“FASB”). The new guidance requires excess tax benefits and tax deficiencies to be recorded as a discrete adjustment to income tax expense when stock awards vest, rather than in additional paid-in capital when they reduce income taxes payable. The Company also made the accounting policy election, as allowed by the new guidance, to account for forfeitures of stock awards as they occur, rather than estimating forfeitures. These changes were required to be applied on a modified retrospective basis through a cumulative-effect adjustment to the opening balance of retained earnings. The cumulative effect of adopting ASU 2016-09 was an increase in Deferred tax assets of $11.0 million, a decrease in Deferred tax liabilities of $24.4 million, an increase in Additional paid-in capital of $2.5 million, and a decrease in Accumulated deficit of $32.9 million, as of January 1, 2017, as a result of recognizing $35.4 million of previously unrecognized excess tax benefits from stock-based compensation, and a $2.5 million adjustment related to the change in accounting policy for forfeitures. Additionally, the new guidance requires cash flows related to excess tax benefits from stock-based compensation to be recognized with other income tax cash flows in operating activities, rather than separately as a financing activity. The Company elected to apply this new cash flow presentation requirement retrospectively, which resulted in an increase to both net cash from operating activities and net cash used in financing activities of $25.1 million and $18.5 million for the years ended December 31, 2016 and 2015, respectively. Effective January 1, 2017, the Company adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment, which was issued by the FASB. The guidance in the ASU simplifies certain aspects of the goodwill impairment test, including the elimination of the requirement to perform a qualitative assessment of the likelihood of a goodwill impairment for reporting units with a negative carrying value. All of the Company’s goodwill is included in the Registry Services reporting unit which has a negative carrying value. As a result, the Company will no longer be required to perform the qualitative assessment. Recent Accounting Pronouncements On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will be effective for the Company’s 2018 fiscal year. The FASB also issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. Upon adoption the Company will record an asset of $27.3 million related to fees paid to ICANN for registrations and renewals of domain names ending in .com. These costs have historically been recognized as expense in the period of the registration or renewal but the Company has determined that they represent costs incurred to obtain a contract under the new guidance and will be capitalized and amortized over the respective domain terms beginning in 2018. The standard will be adopted on a modified retrospective basis and recorded as a cumulative effect adjustment to Accumulated deficit on January 1, 2018. This adjustment will be reflected in the financial statements included in our Form 10-Q for the three months ended March 31, 2018. Apart from this adjustment and the inclusion of the additional required disclosures, the Company does not expect the adoption of the new revenue standard to impact its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases. The guidance introduces a lessee model that requires most leases to be reported on the balance sheet. This ASU will become effective for the Company on January 1, 2019 and requires the modified retrospective transition method. Based on its current portfolio of leases, the Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. Significant Accounting Policies Cash and Cash Equivalents Verisign considers all highly-liquid investments purchased with original maturities of three months or less to be cash equivalents. Cash and cash equivalents include certain money market funds, debt securities and various deposit accounts. Verisign maintains its cash and cash equivalents with financial institutions that have investment grade ratings and, as part of its cash management process, performs periodic evaluations of the relative credit standing of these financial institutions. Marketable Securities Marketable securities primarily consist of debt securities issued by the U.S. Treasury. All marketable securities are classified as available-for-sale and are carried at fair value. Unrealized gains and losses, net of taxes, are reported as a component of Accumulated other comprehensive loss. The specific identification method is used to determine the cost basis of the marketable securities sold. The Company classifies its marketable securities as current based on their nature and availability for use in current operations. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets of 35 to 47 years for buildings, 10 years for building improvements and three to five years for computer equipment, software, office equipment, and furniture and fixtures. Leasehold improvements are amortized using the straight-line method over the lesser of the estimated useful lives of the assets or associated lease terms. Capitalized Software Software included in property and equipment includes amounts paid for purchased software and development costs for internally developed software. The Company capitalized $17.7 million and $18.0 million of costs related to internally developed software during 2017 and 2016, respectively. Goodwill and Other Long-lived Assets Goodwill represents the excess of purchase consideration over fair value of net assets of businesses acquired. Goodwill is not amortized, but instead tested for impairment. All of the Company’s goodwill is included in the Registry Services reporting unit which has a negative carrying value. Upon adoption of ASU 2017-04, Simplifying the Test for Goodwill Impairment in 2017, the Company is no longer required to perform the qualitative assessment at the end of each reporting period to determine if any events have occurred or circumstances exist that would indicate that it is more likely than not that a goodwill impairment exists. Long-lived assets, such as property, plant, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset, or asset group, may not be recoverable. Such events or circumstances include, but are not limited to, a significant decrease in the fair value of the underlying business, a significant decrease in the benefits realized from an acquired business, difficulties or delays in integrating the business or a significant change in the operations of an acquired business. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset, or asset group, to estimated undiscounted future cash flows expected to be generated by the asset, or asset group. An impairment charge is recognized in the amount by which the carrying amount of the asset exceeds its fair value. As of December 31, 2017, the Company’s assets include a deposit related to the purchase of the contractual rights to the .web gTLD. The amount paid to date has been recorded as a deposit until such time that the contractual rights are transferred to the Company. This asset would be tested for recoverability if the Company were to determine that it is no longer probable that the rights will be transferred. At the time of the transfer of the contractual rights, the Company will record the amount as an indefinite-lived intangible asset subject to review for impairment on an annual basis or more frequently if events or changes in circumstances indicate that an impairment is more likely than not. 3.25% Junior Subordinated Convertible Debentures Due 2037 (“Subordinated Convertible Debentures”) Upon issuance of the Subordinated Convertible Debentures, Verisign separated the liability (debt) and equity (conversion option) components in a manner that reflected the borrowing rate for a similar non-convertible debt. The liability component was recognized based on the fair value of a similar instrument without a conversion feature at issuance. The excess of the principal amount of the Subordinated Convertible Debentures over the liability component at issuance is the equity component or debt discount. Such excess represents the estimated fair value of the conversion feature and is recorded as Additional paid-in capital. The debt discount is amortized using the Company’s effective interest rate over the term of the Subordinated Convertible Debentures as a non-cash charge to interest expense. The Subordinated Convertible Debentures also have a contingent interest payment provision that requires the Company to pay interest based on certain thresholds, and upon the occurrence of certain events, as outlined in the Indenture governing the Subordinated Convertible Debentures. The contingent interest payment provision was identified as an embedded derivative, and accounted for separately at fair value, with any gains and losses recorded in Non-operating income (loss), net. Contingent interest payments through August 15, 2017, reflected the settlement of the embedded derivative. Effective August 15, 2017, Verisign has the right to redeem the Subordinated Convertible Debentures under the terms of the indenture, Therefore, the fair value of the contingent interest embedded derivative for periods after August 15, 2017 is negligible and is no longer recognized separately. Expense for contingent interest payments after August 15, 2017 are included within Interest expense on the Consolidated Statements of Comprehensive Income. Foreign Currency Remeasurement Verisign conducts business in several different countries and transacts in multiple currencies. The functional currency for all of Verisign’s international subsidiaries is the U.S. Dollar. The Company’s subsidiaries’ financial statements are remeasured into U.S. Dollars using a combination of current and historical exchange rates and any remeasurement gains and losses are included in Non-operating income (loss), net. Remeasurement gains and losses were not significant in each of the last three years. Verisign maintains a foreign currency risk management program designed to mitigate foreign exchange risks associated with the monetary assets and liabilities that are denominated in currencies other than the U.S. dollar. The primary objective of this program is to minimize the gains and losses resulting from fluctuations in exchange rates. The Company does not enter into foreign currency transactions for trading or speculative purposes, nor does it hedge foreign currency exposures in a manner that entirely offsets the effects of changes in exchange rates. The program may entail the use of forward or option contracts, which are usually placed and adjusted monthly. These foreign currency forward contracts are derivatives and are recorded at fair market value. The Company records gains and losses on foreign currency forward contracts in Non-operating income (loss), net. Gains and losses related to foreign currency forward contracts were not significant in each of the last three years. As of December 31, 2017, Verisign held foreign currency forward contracts in notional amounts totaling $29.7 million to mitigate the impact of exchange rate fluctuations associated with certain assets and liabilities held in foreign currencies. Revenue Recognition Verisign recognizes revenues when the following four criteria are met:
Registry Services Registry Services revenues primarily arise from fixed fees charged to registrars for the initial registration or renewal of .com, .net, and other domain names. Revenues from the initial registration or renewal of domain names are deferred and recognized ratably over the registration term, generally one year and up to ten years. Fees for renewals and advance extensions to the existing term are deferred until the new incremental period commences. These fees are then recognized ratably over the renewal term. Verisign also offers promotional marketing programs to its registrars based upon market conditions and the business environment in which the registrars operate. Amounts payable to these registrars for such promotional marketing programs are usually recorded as a reduction of revenue. If Verisign obtains an identifiable benefit separate from the services it provides to the registrars, then amounts payable up to the fair value of the benefit received are recorded as advertising expenses and the excess, if any, is recorded as a reduction of revenue. Security Services Following the revenue recognition criteria above, revenues from Security Services are usually deferred and recognized over the service term, generally one to two years. Advertising Expenses Advertising costs are expensed as incurred and are included in Sales and marketing expenses. Advertising expenses, including costs for advertising campaigns conducted jointly with our registrar customers were $27.4 million, $17.2 million, and $16.0 million in 2017, 2016, and 2015, respectively. Income Taxes Verisign uses the asset and liability method to account for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Tax Cuts and Jobs Act (“Tax Act”) was enacted on December 22, 2017, most provisions of which will take effect starting in 2018. The Tax Act makes substantial changes to U.S. taxation of corporations, including, lowering the U.S. federal corporate income tax rate from 35% to 21%, and instituting a territorial tax system, along with a one-time tax on accumulated foreign earnings. The effect on deferred tax assets and liabilities of a change in law or tax rates is recognized in income in the period that includes the enactment date. The Company records a valuation allowance to reduce deferred tax assets to an amount whose realization is more likely than not. For every tax-paying component and within each tax jurisdiction, all deferred tax liabilities and assets are offset and presented as a single net noncurrent asset or liability. The Company’s income taxes payable is reduced by the tax benefits from restricted stock unit (“RSU”) vestings equal to the fair market value of the stock at the vesting date. Subsequent to the adoption of ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting on January 1, 2017, if the income tax benefit at the exercise or vesting date differs from the income tax benefit recorded based on the grant date fair value of the RSUs, the excess or shortfall of the tax benefit is recognized within income tax expense. Among other changes, the Tax Act includes a provision designed to currently tax global intangible low-taxed income (“GILTI”). The Company is evaluating available accounting policy alternatives to either record the U.S. income tax effect of future GILTI inclusions in the period in which they arise or establish deferred taxes with respect to the expected future tax liabilities associated with future GILTI inclusions, but has not yet made a policy election. Verisign’s global operations involve dealing with uncertainties and judgments in the application of complex tax regulations in multiple jurisdictions. The final taxes payable are dependent upon many factors, including negotiations with taxing authorities in various jurisdictions and resolution of disputes arising from U.S. federal, state, and international tax audits. The Company may only recognize or continue to recognize tax positions that are more likely than not to be sustained upon examination. The Company adjusts these liabilities for uncertain tax positions in light of changing facts and circumstances; however, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from its current estimate of the tax liabilities. The Company’s assumptions, judgments and estimates relative to the value of a deferred tax asset take into account predictions of the amount and character of future taxable income, such as income from operations or capital gains income. Actual operating results and the underlying amount and character of income in future years could render the Company’s current assumptions, judgments and estimates of recoverable net deferred taxes inaccurate. Any of the assumptions, judgments and estimates mentioned above could cause the Company’s actual income tax obligations to differ from its estimates, thus materially impacting its financial condition and results of operations. Stock-based Compensation The Company’s stock-based compensation is primarily related to RSUs granted to employees and its employee stock purchase plan (“ESPP”). Stock-based compensation expense is typically recognized ratably over the requisite service period. Subsequent to the adoption of ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting on January 1, 2017, forfeitures of stock-based awards are no longer estimated at the time of grant but are recognized as they occur. The Company also grants RSUs which include performance conditions, and in some cases market conditions, to certain executives. The expense for these performance-based RSUs is recognized based on the probable outcome of the performance conditions. The expense recognized for awards with market conditions is based on the grant date fair value of the awards including the impact of the market conditions, using a Monte Carlo simulation model. The Company uses the Black-Scholes option pricing model to determine the fair value of its ESPP offerings. The determination of the fair value of stock-based payment awards using the Monte Carlo simulation model or the Black-Scholes option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. Earnings per Share The Company computes basic earnings per share by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share gives effect to dilutive potential common shares, including outstanding stock options, unvested RSUs, ESPP offerings and the conversion spread related to the Subordinated Convertible Debentures using the treasury stock method. Fair Value of Financial Instruments The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
The Company measures and reports certain financial assets and liabilities at fair value on a recurring basis, including its investments in money market funds classified as Cash and cash equivalents, marketable securities, and foreign currency forward contracts. Legal Proceedings Verisign is involved in various investigations, claims and lawsuits arising in the normal conduct of its business, none of which, in its opinion, will have a material adverse effect on its financial condition, results of operations, or cash flows. The Company cannot assure you that it will prevail in any litigation. Regardless of the outcome, any litigation may require the Company to incur significant litigation expense and may result in significant diversion of management attention. While certain legal proceedings and related indemnification obligations to which the Company is a party specify the amounts claimed, such claims may not represent reasonably possible losses. Given the inherent uncertainties of the litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated, except in circumstances where an aggregate litigation accrual has been recorded for probable and reasonably estimable loss contingencies. A determination of the amount of accrual required, if any, for these contingencies is made after careful analysis of each matter. The required accrual may change in the future due to new developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters. The Company does not believe that any such matter currently being reviewed will have a material adverse effect on its financial condition, results of operations, or cash flows. |
Financial Instruments |
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Cash, Cash Equivalents And Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Marketable Securities [Text Block] | Financial Instruments Cash, Cash Equivalents, and Marketable Securities The following table summarizes the Company’s cash, cash equivalents, and marketable securities and the fair value categorization of the financial instruments measured at fair value on a recurring basis:
The fair value of the debt securities held as of December 31, 2017 was $2.2 billion, including less than $1.0 million of gross and net unrealized losses. All of the debt securities held as of December 31, 2017 have contractual maturities of less than one year. Fair Value Measurements The fair value of the Company’s investments in money market funds approximates their face value. Such instruments are classified as Level 1 and are included in Cash and cash equivalents. The fair value of the debt securities consisting of U.S. Treasury bills is based on their quoted market prices and are classified as Level 1. Debt securities purchased with original maturities in excess of three months are included in Marketable securities. Debt securities purchased with original maturities less than three months are included in Cash and cash equivalents. The fair value of the equity securities of public companies is based on quoted market prices and are classified as Level 1. Investments in equity securities of public companies are included in marketable securities. As of December 31, 2017, the Company’s other financial instruments include cash, accounts receivable, restricted cash, and accounts payable whose carrying values approximated their fair values. The fair value of the Company’s Subordinated Convertible Debentures was $4.2 billion as of December 31, 2017. The fair values of the Company’s senior notes due 2023 (the “2023 Senior Notes”), the senior notes due 2025 (the “2025 Senior Notes”), and the senior notes due 2027 (the “2027 Senior Notes”) were $772.9 million, $544.4 million, and $563.7 million, respectively, as of December 31, 2017. The fair values of these debt instruments are based on available market information from public data sources and are classified as Level 2. |
Other Balance Sheet Items |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Balance Sheet Items | Other Balance Sheet Items Other Current Assets Other current assets consist of the following:
Property and Equipment, Net The following table presents the detail of property and equipment, net:
Goodwill The following table presents the detail of goodwill:
There was no impairment of goodwill or other long-lived assets recognized in any of the periods presented. Deposits to Acquire Intangible Assets As of December 31, 2017, the Company has recorded $145.0 million for the future assignment to the Company of contractual rights to the .web gTLD, pending resolution of objections by other applicants, regulatory review, and approval from ICANN. Upon assignment of the contractual rights, the Company will record the total investment as an indefinite-lived intangible asset. Other Long-Term Assets Other long-term assets consist of the following:
Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consist of the following:
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Debt And Interest Expense |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt And Interest Expense | Debt and Interest Expense Senior Notes As of December 31, 2017, the Company had senior notes outstanding of $1.8 billion, net of unamortized issuance costs. The balance of the senior notes includes the $550.0 million principal amount of 4.75% senior unsecured notes which were issued in July 2017. All of the outstanding senior notes were issued at par and are senior unsecured obligations of the Company. Interest is payable on each of the senior notes semi-annually. Each of the senior notes issuances is redeemable, in whole or in part, at the Company’s option at times and redemption prices specified in the indentures. The following table summarizes information related to our Senior notes (in thousands, except interest rates):
The indenture governing the 2023 Senior Notes contains covenants that limit the ability of the Company and/or its restricted subsidiaries, under certain circumstances, to, among other things: (i) pay dividends or make distributions on, or redeem or repurchase, its capital stock; (ii) make certain investments; (iii) create liens on assets; (iv) enter into sale/leaseback transactions and (v) merge or consolidate or sell all or substantially all of its assets. These covenants are subject to a number of important limitations and exceptions. The Indenture also provides for events of default, which, if any of them occurs, may permit or, in certain circumstances, require the principal, premium, if any, accrued and unpaid interest and any other monetary obligations on all the then outstanding Notes to be due and payable immediately. The Company has remained in compliance with these covenants and no events of default have occurred over the term of the Notes. 2015 Credit Facility On March 31, 2015, the Company entered into a credit agreement for a $200.0 million committed senior unsecured revolving credit facility (the “2015 Credit Facility”). The 2015 Credit Facility includes financial covenants requiring that the Company’s interest coverage ratio not be less than 3.0 to 1.0 for any period of four consecutive quarters and the Company’s leverage ratio not exceed 2.5 to 1.0. As of December 31, 2017, there were no borrowings outstanding under the facility and the Company was in compliance with the financial covenants. The 2015 Credit Facility expires on April 1, 2020 at which time any outstanding borrowings are due. Verisign may from time to time request lenders to agree on a discretionary basis to increase the commitment amount by up to an aggregate of $150.0 million. Subordinated Convertible Debentures In August 2007, Verisign issued $1.25 billion principal amount of 3.25% subordinated convertible debentures due August 15, 2037, in a private offering. The Subordinated Convertible Debentures are initially convertible, subject to certain conditions, into shares of the Company’s common stock at a conversion rate of 29.0968 shares of common stock per $1,000 principal amount of Subordinated Convertible Debentures, representing an initial effective conversion price of approximately $34.37 per share of common stock. The Company’s common stock price exceeded the current conversion price threshold trigger of $44.68 during the fourth quarter of 2017. Accordingly, the Subordinated Convertible Debentures were convertible at the option of each holder during the first quarter of 2018. Further, in the event of conversion, the Company intends, and has the ability, to settle the principal amount of the Subordinated Convertible Debentures in cash, and therefore, classified the debt component of the Subordinated Convertible Debentures, net of unamortized debt issuance costs as a current liability, as of December 31, 2017. As of December 31, 2017, the if-converted value of the Subordinated Convertible Debentures exceeded its principal amount. Based on the if-converted value of the Subordinated Convertible Debentures as of December 31, 2017, the conversion spread could have required the Company to issue up to an additional 25.4 million shares of common stock. At issuance, the Company calculated the carrying value of the liability component as the present value of its cash flows using a discount rate of 8.5% (borrowing rate for similar non-convertible debt with no contingent payment options), adjusted for the fair value of the contingent interest feature, yielding an effective interest rate of 8.39%. The excess of the principal amount of the debt over the carrying value of the liability component is also referred to as the “debt discount” or “equity component” of the Subordinated Convertible Debentures. The debt discount has been amortized using the Company’s effective interest rate of 8.39% over the 30 year term of the Subordinated Convertible Debentures as a non-cash charge included in Interest expense. Interest is paid semiannually in arrears on August 15 and February 15. Proceeds upon issuance of the Subordinated Convertible Debentures were as follows (in thousands):
The table below presents the carrying amounts of the liability and equity components:
The Company evaluated its debt obligations, including the Subordinated Convertible Debentures subsequent to the enactment of the Tax Act which lowers the U.S. federal income tax rate and imposes a new limitation on interest deductibility for tax purposes. On February 15, 2018, the Company called for the redemption of all of the outstanding Subordinated Convertible Debentures. The debentures will be redeemed on May 1, 2018 at a redemption price equal to 100% of the principal, plus accrued but unpaid interest up to, but not including, the redemption date. The Subordinated Convertible Debentures called for redemption may be converted at any time before the close of business on Monday, April 30, 2018. If holders elect to convert their debentures, the Company intends to settle the $1.25 billion principal value in cash, and the excess value will be settled in shares of the Company’s stock. The following table presents the components of the Company’s interest expense:
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Stockholders' Deficit |
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Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Deficit | Stockholders’ Deficit Treasury Stock Treasury stock is accounted for under the cost method. Treasury stock includes shares repurchased under stock repurchase programs and shares withheld in lieu of minimum tax withholdings due upon vesting of RSUs. On February 9, 2017, the Company’s Board of Directors (“Board”) authorized the repurchase of approximately $640.9 million of its common stock, in addition to the $359.1 million of its common stock remaining available for repurchase under the previous share repurchase program, for a total repurchase authorization of up to $1.0 billion of its common stock. The share repurchase program has no expiration date. Purchases made under the program could be effected through open market transactions, block purchases, accelerated share repurchase agreements or other negotiated transactions. As of December 31, 2017 there was approximately $477.4 million remaining available for repurchases under the share repurchase program. Effective February 8, 2018, the Company’s Board authorized the repurchase of approximately $585.8 million of its common stock, in addition to the $414.2 million of its common stock remaining available for repurchase under the previous share repurchase program, for a total repurchase authorization of up to $1.0 billion of its common stock. The summary of the Company’s common stock repurchases for 2017, 2016 and 2015 are as follows:
Since inception, the Company has repurchased 227.6 million shares of its common stock for an aggregate cost of $8.8 billion, which is recorded as a reduction of Additional paid-in capital. Accumulated Other Comprehensive Loss The following table summarizes the changes in the components of Accumulated other comprehensive loss for 2017 and 2016:
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Calculation Of Net Income Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation Of Net Income Per Share Attributable To Verisign Stockholders | Calculation of Earnings per Share The following table presents the computation of weighted-average shares used in the calculation of basic and diluted earnings per share:
The calculation of diluted weighted average shares outstanding, excludes potentially dilutive securities, the effect of which would have been anti-dilutive, as well as performance based RSUs granted by the Company for which the relevant performance criteria have not been achieved. The number of potential shares excluded from the calculation was not significant in any period presented. |
Geographic And Customer Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geographic And Customer Information | Geographic and Customer Information The Company generates revenue in the U.S.; Europe, the Middle East and Africa (“EMEA”); China; and certain other countries, including Canada, Australia and Japan. The following table presents a comparison of the Company’s geographic revenues:
Revenues for our Registry Services business are generally attributed to the country of domicile and the respective regions in which the Company’s registrars are located, however, this may differ from the regions where the registrars operate or where registrants are located. Revenue growth for each region may be impacted by registrars reincorporating, relocating, or from acquisitions or changes in affiliations of resellers. Revenue growth for each region may also be impacted by registrars domiciled in one region, registering domain names in another region. The following table presents a comparison of property and equipment, net of accumulated depreciation, by geographic region:
Major Customers One customer accounted for approximately 31%, 30%, and 31% of revenues in 2017, 2016, and 2015, respectively. The Company does not believe that the loss of this customer would have a material adverse effect on the Company’s business because, in that event, end-users of this customer would transfer to the Company’s other existing customers. |
Employee Benefits And Stock-Based Compensation |
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Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits And Stock-Based Compensation | Employee Benefits and Stock-based Compensation 401(k) Plan The Company maintains a defined contribution 401(k) plan (the “401(k) Plan”) for substantially all of its U.S. employees. Under the 401(k) Plan, eligible employees may contribute up to 50% of their pre-tax salary, subject to the Internal Revenue Service (“IRS”) annual contribution limits. The Company matches 50% of up to the first 6% of the employee’s annual salary contributed to the plan. The Company contributed $4.0 million in 2017, $3.8 million in 2016, and $3.7 million in 2015 under the 401(k) Plan. The Company can terminate matching contributions at its discretion at any time. Equity Incentive Plan The majority of Verisign’s stock-based compensation relates to RSUs. As of December 31, 2017, a total of 10.5 million shares of common stock were reserved for issuance upon the vesting of RSUs and for the future grant of equity awards. On May 26, 2006, the stockholders of Verisign approved the 2006 Equity Incentive Plan, which was amended and restated on June 9, 2016 (the “2006 Plan”). The 2006 Plan authorizes the award of incentive stock options to employees and non-qualified stock options, restricted stock awards, RSUs, stock bonus awards, stock appreciation rights and performance shares to eligible employees, officers, directors, consultants, independent contractors and advisers. The 2006 Plan is administered by the Compensation Committee which may delegate to a committee of one or more members of the Board or Verisign’s officers the ability to grant certain awards and take certain other actions with respect to participants who are not executive officers or non-employee directors. RSUs are awards covering a specified number of shares of Verisign common stock that may be settled by issuance of those shares (which may be restricted shares). RSUs generally vest over four years. Certain performance-based RSUs, granted to the Company’s executives, vest over either three or four year terms. Additionally, the Company has granted fully vested RSUs to members of its Board in each of the last three years. The Compensation Committee may authorize grants with a different vesting schedule in the future. A total of 27.0 million common shares were authorized and reserved for issuance under the 2006 Plan. 2007 Employee Stock Purchase Plan On August 30, 2007, the Company’s stockholders approved the 2007 Employee Stock Purchase Plan, and in 2017 approved an amendment to increase the shares reserved for issuance by 2.5 million to a total of 8.5 million common shares authorized and reserved for issuance under the ESPP. Eligible employees may purchase common stock through payroll deductions by electing to have between 2% and 25% of their compensation withheld to cover the purchase price. Each participant is granted an option to purchase common stock on the first day of each 24-month offering period and this option is automatically exercised on the last day of each six-month purchase period during the offering period. The purchase price for the common stock under the ESPP is 85% of the lesser of the fair market value of the common stock on the first day of the applicable offering period or the last day of the applicable purchase period. Offering periods begin on the first business day of February and August of each year. As of December 31, 2017, 3.5 million shares of the Company’s common stock remain reserved for future issuance under this plan. Stock-based Compensation Stock-based compensation is classified in the Consolidated Statements of Comprehensive Income in the same expense line items as cash compensation. The following table presents the classification of stock-based compensation:
The following table presents the nature of the Company’s total stock-based compensation:
The income tax benefit that was included within Income tax expense related to these stock-based compensation expenses for 2017, 2016, and 2015 was $12.5 million, $17.7 million, and $16.0 million, respectively. In 2017, the tax benefit reflects the reduction in the U.S. statutory corporate tax rate from 35% to 21%. RSUs Information The following table summarizes unvested RSUs activity:
The RSUs in the table above include certain RSUs granted to the Company’s executives that are subject to performance conditions, and in some cases, market conditions. The unvested RSUs as of December 31, 2017 include approximately 0.4 million RSUs subject to performance and/or market conditions. The number of RSUs, subject to these performance and market conditions, that ultimately vest may range from zero to a maximum of 0.8 million RSUs depending on the level of performance achieved and whether any market conditions are satisfied. The closing price of Verisign’s stock was $114.44 on December 31, 2017. As of December 31, 2017, the aggregate market value of unvested RSUs was $181.7 million. The fair values of RSUs that vested during 2017, 2016, and 2015 were $75.9 million, $70.5 million, and $59.8 million, respectively. As of December 31, 2017, total unrecognized compensation cost related to unvested RSUs was $77.5 million which is expected to be recognized over a weighted-average period of 2.5 years. |
Non-operating income, net |
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Non-operating Income, Net | Non-operating Income (Loss), Net The following table presents the components of Non-operating income (loss), net:
Interest income is earned principally from the Company’s surplus cash balances and marketable securities. On April 1, 2017, the Company completed the sale of its iDefense business, which resulted in a gain of approximately $10.4 million in 2017. The unrealized gains and losses on the contingent interest derivative on the Subordinated Convertible Debentures reflects the change in value of the derivative that results primarily from the changes in the Company’s stock price. The fair value of the contingent interest derivative for periods after August 15, 2017 is negligible due to the Company’s right to redeem the debentures. Contingent interest after August 15, 2017 was included in Interest expense. |
Income Taxes |
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Income Taxes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Text Block] | Income Taxes Income before income taxes is categorized geographically as follows:
The provision for income taxes consisted of the following:
The difference between income tax expense and the amount resulting from applying the federal statutory rate of 35% to Income before income taxes is attributable to the following:
The Tax Act was enacted on December 22, 2017, most provisions of which will take effect starting in 2018. The Tax Act makes substantial changes to U.S. taxation of corporations, including, lowering the U.S. federal corporate income tax rate from 35% to 21%, and instituting a territorial tax system, along with a one-time tax on accumulated foreign earnings. Upon enactment, the Company remeasured its deferred tax balances to reflect the new 21% U.S. federal tax rate, which resulted in a tax benefit of $186.8 million in 2017. The Company also recorded a provisional deferred tax liability for the one-time U.S. tax of $162.4 million, triggered by the Tax Act, on accumulated foreign earnings, net of $38.3 million of resulting previously unrecognized foreign tax credits. As a result of the Tax Act, the Company no longer intends to indefinitely reinvest the earnings of its foreign subsidiaries offshore, and therefore, recognized a provisional deferred tax liability of $33.6 million for foreign withholding tax on its unremitted foreign earnings, net of $26.3 million of resulting foreign tax credits. The Company has not completed its accounting for the tax effects of the enactment of the Tax Act. Specifically, the amounts recorded for the U.S. tax on accumulated foreign earnings, net of foreign tax credits and the foreign withholding tax on unremitted foreign earnings, net of foreign tax credits, and the state income tax effects of these two items are provisional amounts based on the Company’s estimates. The Company expects to complete the accounting for these impacts of the Tax Act in the fourth quarter of 2018 as it finalizes its cumulative earnings and profits of its foreign subsidiaries and receives additional guidance from the IRS pertaining to the Tax Act. The impacts of additional guidance and changes in estimates related to the effects of the Tax Act, if any, will be recorded in the period the additional guidance or information is available. The Company qualifies for a tax holiday in Switzerland which does not expire, unless the required non-Swiss income and expense thresholds are no longer met, or there is a law change which eliminates the holiday. The tax holiday provides reduced rates of taxation on certain types of income and also require certain thresholds of foreign source income. The tax holiday increased the Company’s earnings per share by $0.10, $0.16, and $0.14 in 2017, 2016, and 2015, respectively. The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows:
With the exception of deferred tax assets related to capital loss and certain state net operating loss carryforwards, management believes it is more likely than not that the tax effects of the deferred tax liabilities together with future taxable income, will be sufficient to fully recover the remaining deferred tax assets. As of December 31, 2017, the Company had federal, state and foreign net operating loss carryforwards of approximately $5.5 million, $1.3 billion and $18.9 million, respectively, before applying tax rates for the respective jurisdictions. As of December 31, 2017, the Company had federal and state research tax credits of $4.2 million and $2.3 million, respectively, and alternative minimum tax credits of $17.0 million available for future years. Certain net operating loss carryforwards and credits are subject to an annual limitation under Internal Revenue Code Section 382, but are expected to be fully realized. The federal and state net operating loss and federal tax credit carryforwards expire in various years from 2018 through 2034. The foreign net operating loss can be carried forward indefinitely. As of December 31, 2017, the Company had federal and state capital loss carryforwards of $2.9 billion and $3.1 billion, respectively, before applying tax rates for the respective jurisdictions. The capital loss carryforwards expire in 2018 and are also subject to annual limitations under Internal Revenue Code Section 382. The Company does not expect to realize any tax benefits from the capital loss carryforwards and accordingly has reserved the entire amount through valuation allowance and accrual for uncertain tax positions. As of December 31, 2017, the Company has foreign tax credit carryforwards of $121.5 million. The majority of these foreign tax credits will expire in 2024. The deferred tax liability related to the Subordinated Convertible Debentures is driven by the excess of the tax deduction taken for interest expense over the amount of interest expense recognized in the consolidated financial statements. The interest expense deducted for tax purposes is based on the adjusted issue price of the Subordinated Convertible Debentures, while the interest expense recognized in accordance with GAAP is based only on the liability portion of the Subordinated Convertible Debentures. The adjusted issue price of the Subordinated Convertible Debentures grows over the term due to the difference between the interest deduction taken for income tax, using a comparable yield of 8.5%, and the coupon rate of 3.25%, compounded annually, adjusted for actual versus projected contingent interest payments The Company maintains liabilities for uncertain tax positions. These liabilities involve considerable judgment and estimation and are continuously monitored by management based on the best information available including changes in tax regulations and other information. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
As of December 31, 2017, approximately $217.0 million of unrecognized tax benefits, including penalties and interest, could affect the Company’s tax provision and effective tax rate. It is reasonably possible that during the next twelve months, the Company’s unrecognized tax benefits may change by a significant amount as a result of IRS audits. However the timing of completion and ultimate outcome of the audits remains uncertain. Therefore, the Company cannot currently estimate the impact on the balance of unrecognized tax benefits. In accordance with its accounting policy, the Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of tax expense. These accruals were not material in any period presented. The Company’s major taxing jurisdictions are the U.S., the state of Virginia, and Switzerland. The Company’s U.S. federal income tax returns are currently under examination by the IRS for 2010 through 2014. The Company’s other tax returns are not currently under examination by their respective taxing jurisdictions. Because the Company has used net operating loss carryforwards and other tax attributes to offset its taxable income in current and future years’ income tax returns for the U.S. and Virginia, such attributes can be adjusted by these taxing authorities until the statute closes on the year in which such attributes were utilized. The open years in Switzerland are the 2012 tax year and forward. |
Commitments And Contingencies |
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Commitments And Contingencies | Commitments and Contingencies Purchase Obligations and Contractual Agreements The following table represents the minimum payments required by Verisign under certain purchase obligations, leases, the .tv Agreement with the Government of Tuvalu, and the interest payments and principal on the Subordinated Convertible Debentures and the Senior Notes:
The amounts included in the table above related to the Subordinated Convertible Debentures include the February 2018 coupon and contingent interest payments in addition to the repayment of the full principal amount as a result of the redemption of the debentures as discussed in Note 4, “Debt and Interest Expense.” The amounts in the table above exclude $217.0 million of income tax related uncertain tax positions, as the Company is unable to reasonably estimate the ultimate amount or time of settlement of those liabilities. Verisign enters into certain purchase obligations with various vendors. The Company’s significant purchase obligations include firm commitments with telecommunication carriers and other service providers. The Company does not have any significant purchase obligations beyond 2022. The Company has an agreement with Internet Corporation for Assigned Names and Numbers (“ICANN”) to be the sole registry operator for domain names in the .com registry through November 30, 2024. Under this agreement, the Company pays ICANN on a quarterly basis, $0.25 for each annual increment of a domain name registered or renewed during such quarter. As of December 31, 2017, there were 131.9 million domain names in the .com registry. However, the number of domain names registered and renewed each quarter may vary significantly. The Company incurred registry fees for the .com registry of $32.3 million in 2017, $31.5 million in 2016, and $30.9 million in 2015. Registry fees for other top-level domains that we operate have been excluded from the table above because the amounts are variable or passed through to registrars. The Company has an agreement with the Government of Tuvalu to be the sole registry operator for .tv domain names through December 31, 2021. Registry fees were $5.0 million in each of the last three years. Verisign leases a small portion of its facilities under operating leases that extend into 2020. Rental expenses under operating leases were not material in any period presented. Future rental expenses under existing operating leases are not material. Off-Balance Sheet Arrangements As of December 31, 2017 and 2016, the Company did not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. As such, the Company is not exposed to any financing, liquidity, market or credit risk that could arise if the Company had engaged in such relationships. It is not the Company’s business practice to enter into off-balance sheet arrangements. However, in the normal course of business, the Company does enter into contracts in which it makes representations and warranties that guarantee the performance of the Company’s products and services. Historically, there have been no significant losses related to such guarantees. |
Description Of Business And Summary Of Significant Accounting Policies (Policy) |
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Description Of Business And Summary Of Significant Accounting Policies [Abstract] | |||||||||||||||||
Cash And Cash Equivalents | Cash and Cash Equivalents Verisign considers all highly-liquid investments purchased with original maturities of three months or less to be cash equivalents. Cash and cash equivalents include certain money market funds, debt securities and various deposit accounts. Verisign maintains its cash and cash equivalents with financial institutions that have investment grade ratings and, as part of its cash management process, performs periodic evaluations of the relative credit standing of these financial institutions. |
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Marketable Securities | Marketable Securities Marketable securities primarily consist of debt securities issued by the U.S. Treasury. All marketable securities are classified as available-for-sale and are carried at fair value. Unrealized gains and losses, net of taxes, are reported as a component of Accumulated other comprehensive loss. The specific identification method is used to determine the cost basis of the marketable securities sold. The Company classifies its marketable securities as current based on their nature and availability for use in current operations. |
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Property And Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets of 35 to 47 years for buildings, 10 years for building improvements and three to five years for computer equipment, software, office equipment, and furniture and fixtures. Leasehold improvements are amortized using the straight-line method over the lesser of the estimated useful lives of the assets or associated lease terms. |
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Capitalized Software | Capitalized Software Software included in property and equipment includes amounts paid for purchased software and development costs for internally developed software. The Company capitalized $17.7 million and $18.0 million of costs related to internally developed software during 2017 and 2016, respectively. |
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Goodwill And Other Long-Lived Assets | Goodwill and Other Long-lived Assets Goodwill represents the excess of purchase consideration over fair value of net assets of businesses acquired. Goodwill is not amortized, but instead tested for impairment. All of the Company’s goodwill is included in the Registry Services reporting unit which has a negative carrying value. Upon adoption of ASU 2017-04, Simplifying the Test for Goodwill Impairment in 2017, the Company is no longer required to perform the qualitative assessment at the end of each reporting period to determine if any events have occurred or circumstances exist that would indicate that it is more likely than not that a goodwill impairment exists. Long-lived assets, such as property, plant, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset, or asset group, may not be recoverable. Such events or circumstances include, but are not limited to, a significant decrease in the fair value of the underlying business, a significant decrease in the benefits realized from an acquired business, difficulties or delays in integrating the business or a significant change in the operations of an acquired business. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset, or asset group, to estimated undiscounted future cash flows expected to be generated by the asset, or asset group. An impairment charge is recognized in the amount by which the carrying amount of the asset exceeds its fair value. As of December 31, 2017, the Company’s assets include a deposit related to the purchase of the contractual rights to the .web gTLD. The amount paid to date has been recorded as a deposit until such time that the contractual rights are transferred to the Company. This asset would be tested for recoverability if the Company were to determine that it is no longer probable that the rights will be transferred. At the time of the transfer of the contractual rights, the Company will record the amount as an indefinite-lived intangible asset subject to review for impairment on an annual basis or more frequently if events or changes in circumstances indicate that an impairment is more likely than not. |
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3.25% Junior Subordinated Convertible Debentures Due 2037 ("Convertible Debentures") | 3.25% Junior Subordinated Convertible Debentures Due 2037 (“Subordinated Convertible Debentures”) Upon issuance of the Subordinated Convertible Debentures, Verisign separated the liability (debt) and equity (conversion option) components in a manner that reflected the borrowing rate for a similar non-convertible debt. The liability component was recognized based on the fair value of a similar instrument without a conversion feature at issuance. The excess of the principal amount of the Subordinated Convertible Debentures over the liability component at issuance is the equity component or debt discount. Such excess represents the estimated fair value of the conversion feature and is recorded as Additional paid-in capital. The debt discount is amortized using the Company’s effective interest rate over the term of the Subordinated Convertible Debentures as a non-cash charge to interest expense. The Subordinated Convertible Debentures also have a contingent interest payment provision that requires the Company to pay interest based on certain thresholds, and upon the occurrence of certain events, as outlined in the Indenture governing the Subordinated Convertible Debentures. The contingent interest payment provision was identified as an embedded derivative, and accounted for separately at fair value, with any gains and losses recorded in Non-operating income (loss), net. Contingent interest payments through August 15, 2017, reflected the settlement of the embedded derivative. Effective August 15, 2017, Verisign has the right to redeem the Subordinated Convertible Debentures under the terms of the indenture, Therefore, the fair value of the contingent interest embedded derivative for periods after August 15, 2017 is negligible and is no longer recognized separately. Expense for contingent interest payments after August 15, 2017 are included within Interest expense on the Consolidated Statements of Comprehensive Income. |
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Foreign Currency Remeasurement | Foreign Currency Remeasurement Verisign conducts business in several different countries and transacts in multiple currencies. The functional currency for all of Verisign’s international subsidiaries is the U.S. Dollar. The Company’s subsidiaries’ financial statements are remeasured into U.S. Dollars using a combination of current and historical exchange rates and any remeasurement gains and losses are included in Non-operating income (loss), net. Remeasurement gains and losses were not significant in each of the last three years. Verisign maintains a foreign currency risk management program designed to mitigate foreign exchange risks associated with the monetary assets and liabilities that are denominated in currencies other than the U.S. dollar. The primary objective of this program is to minimize the gains and losses resulting from fluctuations in exchange rates. The Company does not enter into foreign currency transactions for trading or speculative purposes, nor does it hedge foreign currency exposures in a manner that entirely offsets the effects of changes in exchange rates. The program may entail the use of forward or option contracts, which are usually placed and adjusted monthly. These foreign currency forward contracts are derivatives and are recorded at fair market value. The Company records gains and losses on foreign currency forward contracts in Non-operating income (loss), net. Gains and losses related to foreign currency forward contracts were not significant in each of the last three years. As of December 31, 2017, Verisign held foreign currency forward contracts in notional amounts totaling $29.7 million to mitigate the impact of exchange rate fluctuations associated with certain assets and liabilities held in foreign currencies. |
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Revenue Recognition | Revenue Recognition Verisign recognizes revenues when the following four criteria are met:
Registry Services Registry Services revenues primarily arise from fixed fees charged to registrars for the initial registration or renewal of .com, .net, and other domain names. Revenues from the initial registration or renewal of domain names are deferred and recognized ratably over the registration term, generally one year and up to ten years. Fees for renewals and advance extensions to the existing term are deferred until the new incremental period commences. These fees are then recognized ratably over the renewal term. Verisign also offers promotional marketing programs to its registrars based upon market conditions and the business environment in which the registrars operate. Amounts payable to these registrars for such promotional marketing programs are usually recorded as a reduction of revenue. If Verisign obtains an identifiable benefit separate from the services it provides to the registrars, then amounts payable up to the fair value of the benefit received are recorded as advertising expenses and the excess, if any, is recorded as a reduction of revenue. Security Services Following the revenue recognition criteria above, revenues from Security Services are usually deferred and recognized over the service term, generally one to two years. |
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Advertising Expenses | Advertising Expenses Advertising costs are expensed as incurred and are included in Sales and marketing expenses. Advertising expenses, including costs for advertising campaigns conducted jointly with our registrar customers were $27.4 million, $17.2 million, and $16.0 million in 2017, 2016, and 2015, respectively. |
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Income Taxes | Income Taxes Verisign uses the asset and liability method to account for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Tax Cuts and Jobs Act (“Tax Act”) was enacted on December 22, 2017, most provisions of which will take effect starting in 2018. The Tax Act makes substantial changes to U.S. taxation of corporations, including, lowering the U.S. federal corporate income tax rate from 35% to 21%, and instituting a territorial tax system, along with a one-time tax on accumulated foreign earnings. The effect on deferred tax assets and liabilities of a change in law or tax rates is recognized in income in the period that includes the enactment date. The Company records a valuation allowance to reduce deferred tax assets to an amount whose realization is more likely than not. For every tax-paying component and within each tax jurisdiction, all deferred tax liabilities and assets are offset and presented as a single net noncurrent asset or liability. The Company’s income taxes payable is reduced by the tax benefits from restricted stock unit (“RSU”) vestings equal to the fair market value of the stock at the vesting date. Subsequent to the adoption of ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting on January 1, 2017, if the income tax benefit at the exercise or vesting date differs from the income tax benefit recorded based on the grant date fair value of the RSUs, the excess or shortfall of the tax benefit is recognized within income tax expense. Among other changes, the Tax Act includes a provision designed to currently tax global intangible low-taxed income (“GILTI”). The Company is evaluating available accounting policy alternatives to either record the U.S. income tax effect of future GILTI inclusions in the period in which they arise or establish deferred taxes with respect to the expected future tax liabilities associated with future GILTI inclusions, but has not yet made a policy election. Verisign’s global operations involve dealing with uncertainties and judgments in the application of complex tax regulations in multiple jurisdictions. The final taxes payable are dependent upon many factors, including negotiations with taxing authorities in various jurisdictions and resolution of disputes arising from U.S. federal, state, and international tax audits. The Company may only recognize or continue to recognize tax positions that are more likely than not to be sustained upon examination. The Company adjusts these liabilities for uncertain tax positions in light of changing facts and circumstances; however, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from its current estimate of the tax liabilities. The Company’s assumptions, judgments and estimates relative to the value of a deferred tax asset take into account predictions of the amount and character of future taxable income, such as income from operations or capital gains income. Actual operating results and the underlying amount and character of income in future years could render the Company’s current assumptions, judgments and estimates of recoverable net deferred taxes inaccurate. Any of the assumptions, judgments and estimates mentioned above could cause the Company’s actual income tax obligations to differ from its estimates, thus materially impacting its financial condition and results of operations. |
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Stock-Based Compensation | Stock-based Compensation The Company’s stock-based compensation is primarily related to RSUs granted to employees and its employee stock purchase plan (“ESPP”). Stock-based compensation expense is typically recognized ratably over the requisite service period. Subsequent to the adoption of ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting on January 1, 2017, forfeitures of stock-based awards are no longer estimated at the time of grant but are recognized as they occur. The Company also grants RSUs which include performance conditions, and in some cases market conditions, to certain executives. The expense for these performance-based RSUs is recognized based on the probable outcome of the performance conditions. The expense recognized for awards with market conditions is based on the grant date fair value of the awards including the impact of the market conditions, using a Monte Carlo simulation model. The Company uses the Black-Scholes option pricing model to determine the fair value of its ESPP offerings. The determination of the fair value of stock-based payment awards using the Monte Carlo simulation model or the Black-Scholes option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. |
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Earnings Per Share | Earnings per Share The Company computes basic earnings per share by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share gives effect to dilutive potential common shares, including outstanding stock options, unvested RSUs, ESPP offerings and the conversion spread related to the Subordinated Convertible Debentures using the treasury stock method. |
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Fair Value Of Financial Instruments | Fair Value of Financial Instruments The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
The Company measures and reports certain financial assets and liabilities at fair value on a recurring basis, including its investments in money market funds classified as Cash and cash equivalents, marketable securities, and foreign currency forward contracts. |
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Commitments and Contingencies, Policy [Policy Text Block] | Legal Proceedings Verisign is involved in various investigations, claims and lawsuits arising in the normal conduct of its business, none of which, in its opinion, will have a material adverse effect on its financial condition, results of operations, or cash flows. The Company cannot assure you that it will prevail in any litigation. Regardless of the outcome, any litigation may require the Company to incur significant litigation expense and may result in significant diversion of management attention. While certain legal proceedings and related indemnification obligations to which the Company is a party specify the amounts claimed, such claims may not represent reasonably possible losses. Given the inherent uncertainties of the litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated, except in circumstances where an aggregate litigation accrual has been recorded for probable and reasonably estimable loss contingencies. A determination of the amount of accrual required, if any, for these contingencies is made after careful analysis of each matter. The required accrual may change in the future due to new developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters. The Company does not believe that any such matter currently being reviewed will have a material adverse effect on its financial condition, results of operations, or cash flows. |
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New Accounting Pronouncements, Policy [Policy Text Block] | Adoption of New Accounting Standards Effective January 1, 2017, the Company adopted Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting, issued by the Financial Accounting Standards Board (“FASB”). The new guidance requires excess tax benefits and tax deficiencies to be recorded as a discrete adjustment to income tax expense when stock awards vest, rather than in additional paid-in capital when they reduce income taxes payable. The Company also made the accounting policy election, as allowed by the new guidance, to account for forfeitures of stock awards as they occur, rather than estimating forfeitures. These changes were required to be applied on a modified retrospective basis through a cumulative-effect adjustment to the opening balance of retained earnings. The cumulative effect of adopting ASU 2016-09 was an increase in Deferred tax assets of $11.0 million, a decrease in Deferred tax liabilities of $24.4 million, an increase in Additional paid-in capital of $2.5 million, and a decrease in Accumulated deficit of $32.9 million, as of January 1, 2017, as a result of recognizing $35.4 million of previously unrecognized excess tax benefits from stock-based compensation, and a $2.5 million adjustment related to the change in accounting policy for forfeitures. Additionally, the new guidance requires cash flows related to excess tax benefits from stock-based compensation to be recognized with other income tax cash flows in operating activities, rather than separately as a financing activity. The Company elected to apply this new cash flow presentation requirement retrospectively, which resulted in an increase to both net cash from operating activities and net cash used in financing activities of $25.1 million and $18.5 million for the years ended December 31, 2016 and 2015, respectively. Effective January 1, 2017, the Company adopted ASU 2017-04, Simplifying the Test for Goodwill Impairment, which was issued by the FASB. The guidance in the ASU simplifies certain aspects of the goodwill impairment test, including the elimination of the requirement to perform a qualitative assessment of the likelihood of a goodwill impairment for reporting units with a negative carrying value. All of the Company’s goodwill is included in the Registry Services reporting unit which has a negative carrying value. As a result, the Company will no longer be required to perform the qualitative assessment. Recent Accounting Pronouncements On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will be effective for the Company’s 2018 fiscal year. The FASB also issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. Upon adoption the Company will record an asset of $27.3 million related to fees paid to ICANN for registrations and renewals of domain names ending in .com. These costs have historically been recognized as expense in the period of the registration or renewal but the Company has determined that they represent costs incurred to obtain a contract under the new guidance and will be capitalized and amortized over the respective domain terms beginning in 2018. The standard will be adopted on a modified retrospective basis and recorded as a cumulative effect adjustment to Accumulated deficit on January 1, 2018. This adjustment will be reflected in the financial statements included in our Form 10-Q for the three months ended March 31, 2018. Apart from this adjustment and the inclusion of the additional required disclosures, the Company does not expect the adoption of the new revenue standard to impact its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases. The guidance introduces a lessee model that requires most leases to be reported on the balance sheet. This ASU will become effective for the Company on January 1, 2019 and requires the modified retrospective transition method. Based on its current portfolio of leases, the Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. |
Financial Instruments (Tables) |
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Cash, Cash Equivalents And Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents, And Marketable Securities | The following table summarizes the Company’s cash, cash equivalents, and marketable securities and the fair value categorization of the financial instruments measured at fair value on a recurring basis:
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Other Balance Sheet Items (Tables) |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses And Other Current Assets | Other current assets consist of the following:
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Property And Equipment, Net | The following table presents the detail of property and equipment, net:
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Goodwill | The following table presents the detail of goodwill:
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Other Long-Term Assets | Other long-term assets consist of the following:
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Components Of Accounts Payable And Accrued Liabilities | Accounts payable and accrued liabilities consist of the following:
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Debt And Interest Expense (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt [Table Text Block] | The following table summarizes information related to our Senior notes (in thousands, except interest rates):
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Proceeds upon issuance of the Convertible Debentures | Proceeds upon issuance of the Subordinated Convertible Debentures were as follows (in thousands):
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Schedule of Carrying Amounts of Liability and Equity Components | The table below presents the carrying amounts of the liability and equity components:
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Schedule of Components of Interest Expense | The following table presents the components of the Company’s interest expense:
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Stockholders' Deficit Stockholders' Deficit (Equity) (Tables) |
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Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Common Stock Repurchase | The summary of the Company’s common stock repurchases for 2017, 2016 and 2015 are as follows:
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Schedule of Accumulated Other Comprehensive Loss | The following table summarizes the changes in the components of Accumulated other comprehensive loss for 2017 and 2016:
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Calculation Of Net Income Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares [Table Text Block] | The following table presents the computation of weighted-average shares used in the calculation of basic and diluted earnings per share:
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Geographic And Customer Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparison of Geographic Revenues | The following table presents a comparison of the Company’s geographic revenues:
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Comparison of Property and Equipment, Net, by Geographic Region | The following table presents a comparison of property and equipment, net of accumulated depreciation, by geographic region:
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Employee Benefits And Stock-Based Compensation (Tables) |
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Classification Of Stock-Based Compensation | The following table presents the classification of stock-based compensation:
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Nature Of Total Stock-Based Compensation | The following table presents the nature of the Company’s total stock-based compensation:
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Summary Of Unvested RSUs Activity | The following table summarizes unvested RSUs activity:
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Non-operating income, net Non-operating income, net (Tables) |
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Schedule of Non-operating Income, net | The following table presents the components of Non-operating income (loss), net:
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Income Taxes (Tables) |
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Income Taxes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income From Continuing Operations Before Income Taxes | Income before income taxes is categorized geographically as follows:
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Components Of Provision For Income Taxes | The provision for income taxes consisted of the following:
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Reconciliation Of Income Tax At Effective Income Tax Rate | The difference between income tax expense and the amount resulting from applying the federal statutory rate of 35% to Income before income taxes is attributable to the following:
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Summary Of Deferred Tax Assets And Liabilities | The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows:
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Reconciliation Of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
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Commitments And Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum Payments Required Under Purchase Obligations | The following table represents the minimum payments required by Verisign under certain purchase obligations, leases, the .tv Agreement with the Government of Tuvalu, and the interest payments and principal on the Subordinated Convertible Debentures and the Senior Notes:
|
Financial Instruments (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash | $ 135,092 | $ 39,183 | ||
Money market funds | 3,682 | 4,632 | ||
Time deposits | 116,068 | 134,790 | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 2,169,172 | 1,626,764 | ||
Available-for-sale Securities, Equity Securities | 25 | 2,174 | ||
Total | 2,424,039 | 1,807,543 | ||
Included in Cash and cash equivalents | 465,851 | 231,945 | $ 228,659 | $ 191,608 |
Included in Marketable securities | 1,948,900 | 1,565,962 | ||
Included in Other assets (Restricted cash) | $ 9,288 | $ 9,636 |
Financial Instruments Financial Instruments narrative (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Instrument, Fair Value Disclosure | $ 4,200,000 | |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 2,169,172 | $ 1,626,764 |
Available-for-sale Debt Securities Gross Unrealized Gain | 1,000 | |
Due 2023 [Member] | ||
Debt Instrument, Fair Value Disclosure | 772,900 | |
Due 2025 [Member] | ||
Debt Instrument, Fair Value Disclosure | 544,400 | |
Due 2027 [Member] | ||
Debt Instrument, Fair Value Disclosure | $ 563,700 |
Other Balance Sheet Items (Prepaid Expenses And Other Current Assets) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid expenses | $ 15,787 | $ 14,385 |
Accounts Receivable, Net, Current | 5,111 | 13,051 |
Income Taxes Receivable | 6,347 | 15,328 |
Other | 4,157 | 1,671 |
Other current assets | $ 31,402 | $ 44,435 |
Other Balance Sheet Items (Property And Equipment, Net) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Land | $ 31,141 | $ 31,141 |
Buildings and building improvements | 246,654 | 246,237 |
Computer equipment and software | 462,469 | 441,732 |
Capital work in progress | 4,024 | 4,246 |
Office equipment and furniture | 6,472 | 6,203 |
Leasehold improvements | 1,403 | 1,350 |
Total cost | 752,163 | 730,909 |
Less: accumulated depreciation and amortization | (488,650) | (464,784) |
Total property and equipment, net | $ 263,513 | $ 266,125 |
Other Balance Sheet Items Other Balance Sheet Items (Goodwill) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Goodwill, Gross | $ 1,537,843 | $ 1,537,843 |
Goodwill, Impaired, Accumulated Impairment Loss | (1,485,316) | (1,485,316) |
Goodwill | $ 52,527 | $ 52,527 |
Other Balance Sheet Items Other balance Sheet items (Other long-term assets) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Restricted Cash | $ 9,288 | $ 9,636 |
Nontrade Receivables, Noncurrent | 5,673 | 5,673 |
Prepaid Expense and Other Assets, Noncurrent | 3,642 | 3,884 |
Total other long-term assets | $ 18,603 | $ 19,193 |
Other Balance Sheet Items (Components Of Accounts Payable And Accrued Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Accounts payable | $ 20,923 | $ 19,455 |
Accrued employee compensation | 51,481 | 61,426 |
Customer deposits, net | 63,617 | 52,173 |
Interest Payable | 47,357 | 27,701 |
Taxes payable and other tax liabilities | 13,477 | 23,144 |
Other accrued liabilities | 22,748 | 20,021 |
Total accounts payable and accrued liabilities | $ 219,603 | $ 203,920 |
Other Balance Sheet Items (Narrative) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Deposits Assets, Noncurrent | $ 145,000 | $ 145,000 |
Debt And Interest Expense Debt and Interest Expense (Senior Notes) (Narrative) (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Aug. 31, 2007 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Aug. 15, 2007 |
|
Debt Instrument [Line Items] | |||||
Senior Notes | $ 1,782,529 | $ 1,237,189 | |||
Debt Instrument, Face Amount | 1,250,000 | 1,250,000 | $ 1,250,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | ||||
Debt Instrument, Maturity Date | Apr. 01, 2020 | ||||
issuance cost on senior note | $ (17,471) | (12,811) | |||
Net proceeds from issuance of convertible debenture | $ 1,224,223 | ||||
Due 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Offering Date | Jul. 05, 2017 | ||||
Debt Instrument, Face Amount | $ 550,000 | $ 0 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ||||
Debt Instrument, Maturity Date | Jul. 15, 2027 |
Debt And Interest Expense (Credit Facilities) (Narrative) (Details) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2017
USD ($)
|
|
Debt Instrument [Line Items] | ||
Borrowing capacity of senior unsecured revolving credit facility | $ 200,000,000.0 | |
Credit facility, maturity date | Apr. 01, 2020 | |
Aggregate increase of commitment amount available | $ 150,000,000.0 | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest coverage ratio | 3.0 | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Leverage ratio | 2.5 |
Debt And Interest Expense Debt And Interest Expense (Proceeds Upon Issuance Of Convertible Debt) (Details) $ in Thousands |
1 Months Ended |
---|---|
Aug. 31, 2007
USD ($)
| |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 1,250,000 |
Payments of Debt Issuance Costs | (25,777) |
Proceeds from Convertible Debt | 1,224,223 |
Convertible Debt [Member] | |
Debt Instrument [Line Items] | |
Proceeds from Convertible Debt | 546,915 |
Additional Paid-in Capital [Member] | |
Debt Instrument [Line Items] | |
Proceeds from Convertible Debt | 418,996 |
Long-term deferred tax liability [member] | |
Debt Instrument [Line Items] | |
Proceeds from Convertible Debt | 267,225 |
Other Expense [Member] | |
Debt Instrument [Line Items] | |
Proceeds from Convertible Debt | $ (8,913) |
Debt And Interest Expense (Carrying Amounts Of Liability And Equity Components) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
Aug. 15, 2007 |
---|---|---|---|
Debt Disclosure [Abstract] | |||
Debt Instrument, Unamortized Discount (Premium), Net | $ 686,221 | $ 686,221 | |
deferred tax on debenture discount | (267,225) | (267,225) | |
Carrying amount of equity component (net of issuance costs of $14,449) | 418,996 | 418,996 | |
Principal amount of debt | 1,250,000 | 1,250,000 | $ 1,250,000 |
Unamortized discount of liability component | (612,303) | (624,315) | |
Unamortized Debt Issuance Expense | (10,081) | (10,260) | |
Carrying amount of liability component | 627,616 | 615,425 | |
Contingent interest derivative | 0 | 14,339 | |
Convertible Debt | $ 627,616 | $ 629,764 |
Debt And Interest Expense (Components Of Interest Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Short-term Debt [Line Items] | |||
Contractual interest on Convertible Debentures | $ 47,432 | $ 40,625 | $ 40,625 |
Interest Expense, Debt | 73,638 | 60,938 | 54,667 |
Amortization of debt discount on the Convertible Debentures | 12,012 | 11,094 | 10,218 |
Other interest expense | 3,254 | 2,907 | 2,121 |
Total interest expense | $ 136,336 | $ 115,564 | $ 107,631 |
Stockholders' (Deficit) Equity (Narrative) (Details) - USD ($) $ in Millions |
1 Months Ended | ||
---|---|---|---|
Feb. 08, 2018 |
Feb. 09, 2017 |
Dec. 31, 2017 |
|
Treasury Stock Repurchase Programs [Line Items] | |||
Treasury Stock Shares Repurchased | 227,600,000 | ||
Additional share repurchase amount authorized | $ 585.8 | $ 640.9 | |
Common stock authorized to repurchase | 1,000.0 | 1,000.0 | |
Remaining common stock available for repurchase | $ 414.2 | $ 359.1 | |
Payments for Repurchase of Common Stock | $ 8,800.0 | ||
Share Buyback Program [Member] | |||
Treasury Stock Repurchase Programs [Line Items] | |||
Remaining common stock available for repurchase | $ 477.4 |
Stockholders' Deficit Stockholders' (Deficit) Equity (Summary of Common Stock Repurchase) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Stockholders' Equity Note [Abstract] | |||
Treasury Stock Shares Repurchased | 6,265 | 7,789 | 9,338 |
Treasury Stock Shares Repurchased For Tax Withholdings And Other | 335 | 320 | 333 |
Treasury Stock, Shares, Acquired | 6,600 | 8,109 | 9,671 |
Treasury Stock Shares Repurchased, Average Cost Per Share | $ 94.59 | $ 81.73 | $ 66.59 |
Treasury stock shares repurchased for tax withholdings and other, average cost per share | 85.27 | 80.74 | 64.03 |
Treasury Stock Acquired, Average Cost Per Share | $ 94.12 | $ 81.70 | $ 66.50 |
Payments for Repurchase of Common Stock | $ 621,173 | $ 662,491 | $ 643,169 |
Stockholders' Deficit Stockholders' (Deficit) Equity (Changes In Components Of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Stockholders' Equity Note [Abstract] | |||
Foreign Currency Translation Adjustmentss Loss, Changes | $ 530 | $ 85 | |
Foreign Currency Translation Adjustment, Balance | (2,836) | (3,366) | $ (3,451) |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (18) | 455 | |
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (105) | (87) | (542) |
Other Comprehensive Income (Loss), Net of Tax | 512 | 540 | (995) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (2,941) | $ (3,453) | $ (3,993) |
Calculation Of Net Income Per Share (Weighted-Average Shares Used In Calculation Of Basic And Diluted EPS) (Details) - shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Earnings Per Share [Abstract] | |||
Weighted-average number of common shares outstanding | 100,325 | 107,001 | 114,155 |
Conversion spread related to Convertible Debentures | 23,247 | 21,074 | 18,047 |
Unvested restricted stock units | 608 | 758 | 829 |
Shares used to compute diluted net income per share | 124,180 | 128,833 | 133,031 |
Geographic And Customer Information (Narrative) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017
Rate
|
Dec. 31, 2016
Rate
|
Dec. 31, 2015
Rate
|
|
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 31.00% | 30.00% | 31.00% |
Number of customers accounting for concentration of risk | 1 | 1 | 1,000 |
Geographic And Customer Information (Comparison Of Geographic Revenues) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 1,165,095 | $ 1,142,167 | $ 1,059,366 |
U.S. [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 694,759 | 667,301 | 639,170 |
EMEA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 211,349 | 207,474 | 193,623 |
Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 106,526 | 127,298 | 83,456 |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 152,461 | $ 140,094 | $ 143,117 |
Geographic And Customer Information (Comparison Of Property And Equipment, Net, By Geographic Region) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 263,513 | $ 266,125 |
U.S. [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 258,231 | 261,837 |
EMEA [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 5,282 | $ 4,288 |
Employee Benefits And Stock-Based Compensation Employee Benefits And Stock-Based Compensation (Share-based Compensation by award type) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 52,907 | $ 50,044 | $ 46,075 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | (2,455) | (2,386) | (2,718) |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | 38,087 | 37,325 | 36,664 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | 13,270 | 11,512 | 8,078 |
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 4,005 | $ 3,593 | $ 4,051 |
Employee Benefits And Stock-Based Compensation (Summary Of Unvested RSUs Activity) (Details) - $ / shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested at beginning of period, Shares | 1,846 | 2,110 | 2,179 |
Granted, Shares | 732 | 760 | 1,075 |
Vested and settled, Shares | (885) | (873) | (932) |
Forfeited, Shares | (105) | (151) | (212) |
Unvested at end of period, Shares | 1,588 | 1,846 | 2,110 |
Unvested at beginning of period, Weighted-Average Grant-Date Fair Value | $ 66.30 | $ 54.77 | $ 46.36 |
Granted, Weighted-Average Grant-Date Fair Value | 79.94 | 78.58 | 61.74 |
Vested and settled, Weighted-Average Grant-Date Fair Value | 61.75 | 49.95 | 43.92 |
Forfeited, Weighted-Average Grant-Date Fair Value | 72.90 | 61.57 | 51.47 |
Unvested at end of period, Weighted-Average Grant-Date Fair Value | $ 74.69 | $ 66.30 | $ 54.77 |
Non-operating income, net Non-Operating income, net (Components of Non-operating income, net) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Non-operating (loss) income, net [Abstract] | |||
Investment Income, Interest and Dividend | $ 17,944 | $ 6,191 | $ 2,128 |
Gain (Loss) on Disposition of Business | 10,421 | 0 | 0 |
Unrealized Gain (Loss) on Derivatives | (893) | 2,402 | (14,130) |
Other Nonoperating Income (Expense) | 154 | 1,572 | 1,337 |
Nonoperating Income (Expense) | $ 27,626 | $ 10,165 | $ (10,665) |
Non-operating income, net Non-Operating Income, net (Narrative) (Details) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Gain on Sale of Business [Abstract] | |||
Gain (Loss) on Disposition of Business | $ 10,421 | $ 0 | $ 0 |
Income Taxes (Income From Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
United States | $ 313,351 | $ 299,304 | $ 248,932 |
Foreign | 285,661 | 281,869 | 238,718 |
Income from continuing operations before income taxes | $ 599,012 | $ 581,173 | $ 487,650 |
Income Taxes (Components Of Provision For Income Taxes) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal, Current (expense) benefit | $ (16,870) | $ (34,842) | $ (13,601) |
State, Current (expense) benefit | (294) | (240) | (156) |
Foreign, including foreign withholding tax, Current (expense) benefit | (15,539) | (19,268) | (17,241) |
Current (expense) benefit | 32,703 | 54,350 | 30,998 |
Federal, Deferred (expense) benefit | (90,113) | (64,301) | (65,168) |
State, Deferred (expense) benefit | (19,654) | (21,492) | (15,767) |
Foreign, Deferred (expense) benefit | 706 | (385) | (481) |
Deferred (expense) benefit | 109,061 | 86,178 | 81,416 |
Income tax (expense) benefit | $ 141,764 | $ 140,528 | $ 112,414 |
Income Taxes (Reconciliation Of Income Tax At Effective Income Tax Rate) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Income tax expense at federal statutory rate | $ (209,654) | $ (203,410) | $ (170,677) |
State taxes, net of federal benefit | (13,029) | (14,517) | (9,616) |
Differences between statutory rate and foreign effective tax rate | 83,808 | 79,087 | 66,238 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | (186,800) | 0 | 0 |
U.S tax on foreign earnings, net of foreign tax credits | 162,353 | 0 | 0 |
Foreign Withholding Tax | 33,619 | 0 | 0 |
Other | 6,283 | (1,688) | 1,641 |
Income tax (expense) benefit | $ 141,764 | $ 140,528 | $ 112,414 |
Income Taxes (Reconciliation Of Gross Unrecognized Tax Benefits) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Gross unrecognized tax benefits at January 1 | $ 220,682 | $ 220,280 |
Increases in tax positions for prior years | 3,699 | 119 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (144) | (71) |
Increases in tax positions for current year | 395 | 354 |
Gross unrecognized tax benefits at December 31 | 223,216 | 220,682 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ (1,416) | $ 0 |
Commitments And Contingencies (Narrative) (Details) number in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Commitments And Contingencies [Line Items] | |||
Number of domain names registered | 131.9 | ||
Uncertain tax positions | $ 217,000,000 | ||
ICANN Agreement [Member] | |||
Commitments And Contingencies [Line Items] | |||
Expiration Date of Registry Agreement | Nov. 30, 2024 | ||
Registry fee per transaction | $ 0.25 | ||
Payments for registry fees | 32,300,000 | $ 31,500,000 | $ 30,900,000 |
.TV Agreement [Member] | |||
Commitments And Contingencies [Line Items] | |||
renewed agreement fees | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 |
Label | Element | Value |
---|---|---|
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 35,460,000 |
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