Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SOHU COM INC | ||
Entity Central Index Key | 1,104,188 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Trading Symbol | SOHU | ||
Entity Public Float | $ 917 | ||
Entity Common Stock, Shares Outstanding | 38,813,288 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 1,050,957 | $ 1,245,205 |
Restricted time deposits | 0 | 227,285 |
Short-term investments | 247,926 | 174,515 |
Accounts receivable, net | 189,167 | 273,617 |
Assets held for sale | 103,079 | 0 |
Prepaid and other current assets (including $15,820 and $29,019, respectively, due from a related party as of December 31, 2015 and 2016) | 260,133 | 154,217 |
Total current assets | 1,851,262 | 2,074,839 |
Fixed assets, net | 503,631 | 508,692 |
Goodwill | 68,290 | 154,219 |
Long-term investments, net | 74,273 | 62,093 |
Intangible assets, net | 32,131 | 55,415 |
Restricted time deposits | 269 | 136,694 |
Prepaid non-current assets | 4,734 | 6,254 |
Other assets | 29,100 | 43,988 |
Total assets | 2,563,690 | 3,042,194 |
LIABILITIES | ||
Accounts payable (including accounts payable of consolidated variable interest entities ("VIEs") without recourse to the Company of $23,757 and $15,824, respectively, as of December 31, 2015 and 2016) | 193,209 | 129,025 |
Accrued liabilities (including accrued liabilities of consolidated VIEs without recourse to the Company of $79,012 and $96,695, respectively, as of December 31, 2015 and 2016) | 324,876 | 309,657 |
Receipts in advance and deferred revenue (including receipts in advance and deferred revenue of consolidated VIEs without recourse to the Company of $55,319 and $44,797, respectively, as of December 31, 2015 and 2016) | 118,951 | 135,385 |
Accrued salary and benefits (including accrued salary and benefits of consolidated VIEs without recourse to the Company of $11,357 and $10,306, respectively, as of December 31, 2015 and 2016) | 92,475 | 99,631 |
Taxes payable (including taxes payable of consolidated VIEs without recourse to the Company of $21,244 and $11,475, respectively, as of December 31, 2015 and 2016) | 40,014 | 67,480 |
Short-term bank loans (including short-term bank loans of consolidated VIEs without recourse to the Company of nil as of both December 31, 2015 and 2016) | 0 | 344,500 |
Liabilities held for sale (including liabilities held for sale of consolidated VIEs without recourse to the Company of nil and $3,232, respectively, as of December 31, 2015 and 2016) | 3,902 | 0 |
Other short-term liabilities (including other short-term liabilities of consolidated VIEs without recourse to the Company of $106,976 and $89,994, respectively, as of December 31, 2015 and 2016, and due to a related party of $13,005 and $28,678, respectively, as of December 31, 2015 and 2016.) | 159,315 | 154,017 |
Total current liabilities | 932,742 | 1,239,695 |
Long-term accounts payable (including long-term accounts payable of consolidated VIEs without recourse to the Company of $2,858 and nil, respectively, as of December 31, 2015 and 2016 ) | 744 | 4,600 |
Long-term taxes payable (including long-term taxes payable of consolidated VIEs without recourse to the Company of $180 and $13,463, respectively, as of December 31, 2015 and 2016) | 32,625 | 24,732 |
Deferred tax liabilities (including deferred tax liabilities of consolidated VIEs without recourse to the Company of $1,490 and $1,273, respectively, as of December 31, 2015 and 2016) | 39,784 | 42,415 |
Total long-term liabilities | 73,153 | 71,747 |
Total liabilities | 1,005,895 | 1,311,442 |
Commitments and contingencies | ||
SHAREHOLDERS' EQUITY | ||
Common stock: $0.001 par value per share (75,400 shares authorized; 38,653 shares and 38,742 shares, respectively, issued and outstanding as of December 31, 2015 and 2016) | 45 | 45 |
Additional paid-in capital | 821,867 | 798,357 |
Treasury stock (5,889 shares as of both December 31, 2015 and 2016) | (143,858) | (143,858) |
Accumulated other comprehensive income | 3,220 | 50,151 |
Retained earnings | 312,306 | 536,327 |
Total Sohu.com Inc. shareholders' equity | 993,580 | 1,241,022 |
Noncontrolling interest | 564,215 | 489,730 |
Total shareholders' equity | 1,557,795 | 1,730,752 |
Total liabilities and shareholders' equity | $ 2,563,690 | $ 3,042,194 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Due from a related party | $ 29,019 | $ 15,820 |
Accounts payable | 193,209 | 129,025 |
Accrued liabilities | 324,876 | 309,657 |
Receipts in advance and deferred revenue | 118,951 | 135,385 |
Accrued salary and benefits | 92,475 | 99,631 |
Taxes payable | 40,014 | 67,480 |
Short-term bank loans | 0 | 344,500 |
Liabilities held for sale | 3,902 | 0 |
Other short-term liabilities | 159,315 | 154,017 |
Due to a related party | 28,678 | 13,005 |
Long-term accounts payable | 744 | 4,600 |
Long-term taxes payable | 32,625 | 24,732 |
Deferred tax liabilities | $ 39,784 | $ 42,415 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 75,400 | 75,400 |
Common stock, shares outstanding (in shares) | 38,742 | 38,653 |
Treasury stock, shares (in shares) | 5,889 | 5,889 |
Consolidated VIEs [Member] | ||
Accounts payable | $ 15,824 | $ 23,757 |
Accrued liabilities | 96,695 | 79,012 |
Receipts in advance and deferred revenue | 44,797 | 55,319 |
Accrued salary and benefits | 10,306 | 11,357 |
Taxes payable | 11,475 | 21,244 |
Short-term bank loans | 0 | 0 |
Liabilities held for sale | 3,232 | 0 |
Other short-term liabilities | 89,994 | 106,976 |
Long-term accounts payable | 0 | 2,858 |
Long-term taxes payable | 13,463 | 180 |
Deferred tax liabilities | $ 1,273 | $ 1,490 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Brand advertising (including revenues generated from a related party of nil, nil and $862, respectively, for 2014, 2015 and 2016) | $ 447,956 | $ 577,114 | $ 541,158 |
Search and search-related | 597,133 | 539,521 | 357,839 |
Subtotal of online advertising revenues | 1,045,089 | 1,116,635 | 898,997 |
Online games | 395,709 | 636,846 | 652,008 |
Others | 209,633 | 183,610 | 122,072 |
Total revenues | 1,650,431 | 1,937,091 | 1,673,077 |
Cost of revenues: | |||
Brand advertising | 371,085 | 383,187 | 307,708 |
Search and search-related | 290,158 | 238,944 | 163,918 |
Subtotal of cost of online advertising revenues | 661,243 | 622,131 | 471,626 |
Online games | 96,168 | 156,315 | 142,549 |
Others | 102,389 | 80,618 | 71,459 |
Total cost of revenues | 859,800 | 859,064 | 685,634 |
Gross profit | 790,631 | 1,078,027 | 987,443 |
Operating expenses: | |||
Product development | 353,144 | 398,143 | 409,285 |
Sales and marketing (including expenses generated for a related party of nil, nil and $216, respectively, for 2014, 2015 and 2016) | 434,780 | 383,931 | 526,514 |
General and administrative | 119,841 | 173,160 | 204,325 |
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 0 | 40,324 | 52,282 |
Total operating expenses | 907,765 | 995,558 | 1,192,406 |
Operating profit /(loss) | (117,134) | 82,469 | (204,963) |
Other income /(expense), net | (10,713) | 74,526 | 9,959 |
Interest income (including interest income generated from a related party of nil, $435, and $1,244, respectively, for 2014, 2015 and 2016) | 22,499 | 30,643 | 37,560 |
Interest expense (including interest expense generated from a related party of nil, $106, and $662, respectively, for 2014, 2015 and 2016) | (1,356) | (7,184) | (6,583) |
Exchange difference | 12,803 | 5,337 | (1,142) |
Income /(loss) before income tax expense | (93,901) | 185,791 | (165,169) |
Income tax expense | 21,072 | 76,936 | 6,050 |
Net income /(loss) | (114,973) | 108,855 | (171,219) |
Less: Net income /(loss) attributable to the noncontrolling interest shareholders | 109,048 | 146,542 | (32,309) |
Dividend or deemed dividend to a noncontrolling Sogou Series A Preferred shareholder | 0 | 11,911 | 27,747 |
Net loss attributable to Sohu.com Inc. | (224,021) | (49,598) | (166,657) |
Net income /(loss) | (114,973) | 108,855 | (171,219) |
Foreign currency translation adjustments | (73,235) | (90,665) | (4,621) |
Change in unrealized gain /(loss) for available-for-sale securities | (3,920) | 3,010 | (3,769) |
Other comprehensive loss | (77,155) | (87,655) | (8,390) |
Comprehensive income /(loss) | (192,128) | 21,200 | (179,609) |
Less: Comprehensive income /(loss) attributable to noncontrolling interest shareholders | 78,824 | 118,138 | (33,797) |
Dividend or deemed dividend to a noncontrolling Sogou Series A Preferred shareholder | 0 | 11,911 | 27,747 |
Comprehensive loss attributable to Sohu.com Inc. | $ (270,952) | $ (108,849) | $ (173,559) |
Basic net loss per share attributable to Sohu.com Inc. | $ (5.79) | $ (1.28) | $ (4.33) |
Shares used in computing basic net loss per share attributable to Sohu.com Inc. | 38,706 | 38,598 | 38,468 |
Diluted net loss per share attributable to Sohu.com Inc. | $ (5.83) | $ (1.32) | $ (4.43) |
Shares used in computing diluted net loss per share attributable to Sohu.com Inc. | 38,706 | 38,598 | 38,468 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Revenues from a related party | $ 862 | $ 0 | $ 0 |
Expenses for a related party | 216 | 0 | 0 |
Interest income from a related party | 1,244 | 435 | 0 |
Interest expense from a related party | $ 662 | $ 106 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income /(loss) | $ (114,973) | $ 108,855 | $ (171,219) |
Adjustments to reconcile net income /(loss) to net cash provided by operating activities: | |||
Amortization of intangible assets and purchased video content in prepaid expense | 131,182 | 159,945 | 130,044 |
Depreciation | 73,449 | 77,421 | 78,417 |
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 0 | 40,324 | 52,282 |
Share-based compensation expense | 19,120 | 53,443 | 57,264 |
Impairment loss of other assets | 22,906 | 17,837 | 1,687 |
Investment (income) /loss from investments in debt securities and equity investments | 2,085 | 7,509 | (1,370) |
Provision /(Reversal) for allowance for doubtful accounts | 7,109 | 2,175 | (4) |
Change in fair value of China Web put option | 0 | 0 | (2,304) |
Gain from sale of the 7Road business and certain Changyou subsidiaries | 0 | (55,139) | 0 |
Gain from sale of equity investments | (149) | (11,942) | 0 |
Change in fair value of financial instruments | (13,133) | (1,331) | (1,611) |
Others | (1,182) | 968 | (38) |
Changes in assets and liabilities, net of acquisition: | |||
Accounts receivable | 62,520 | (61,917) | (74,428) |
Prepaid and other assets | 15,091 | 101 | 30,577 |
Accounts payable | 40,273 | 2,208 | (11,144) |
Receipts in advance and deferred revenue | (8,152) | 11,782 | 14,353 |
Taxes payable | (36,666) | 29,573 | (16,256) |
Deferred tax | 5,268 | 6,020 | (20,629) |
Accrued liabilities and other short-term liabilities | 34,872 | 118,221 | 86,662 |
Net cash provided by operating activities | 239,620 | 506,053 | 152,283 |
Cash flows from investing activities: | |||
Purchase of fixed assets | (105,063) | (101,076) | (90,896) |
Purchase of intangible and other assets | (183,791) | (142,212) | (119,290) |
Purchase of long-term investments | (20,950) | (39,547) | (26,135) |
Funds to a third party | 0 | (20,033) | 0 |
Return of funds from a third party | 5,061 | 9,415 | 0 |
Matching loan to a related party | (18,115) | (13,086) | 0 |
Consideration received from sale of the 7Road business and certain Changyou subsidiaries, net of cash in 7Road upon its disposition | 0 | 184,354 | 0 |
Release of restricted time deposits | 234,462 | 40,372 | 5,763 |
Proceeds received from sale of equity investment | 0 | 15,938 | 0 |
Proceeds from financial instruments | 415,383 | 642,471 | 22,981 |
Purchase of financial instruments | (382,908) | (646,322) | (209,489) |
Acquisitions, net of cash acquired | 0 | 0 | (106,369) |
Proceeds received from debt securities at maturity | 0 | 0 | 82,009 |
Other cash proceeds related to investing activities | 5,182 | (41) | 2,952 |
Net cash used in investing activities | (50,739) | (69,767) | (438,474) |
Cash flows from financing activities: | |||
Matching loan from a related party | 17,041 | 12,900 | 0 |
Issuance of common stock | 0 | 2,124 | 611 |
Exercise of share-based awards in subsidiary | 291 | 7 | 425 |
Repayments of loans from offshore banks | (344,500) | (25,500) | (410,194) |
Repurchase of Sogou Series A Preferred Shares from noncontrolling shareholders | 0 | (21,015) | (47,285) |
Repurchase of Changyou American depositary shares ("ADSs") | 0 | (14,506) | (3,577) |
Repurchase of Sogou Class A Ordinary Shares from noncontrolling shareholders | 0 | 0 | (24,679) |
Proceeds of loans from offshore banks | 0 | 0 | 370,000 |
Payment of contingent consideration | 0 | 0 | (2,813) |
Other cash proceeds /(payments) related to financing activities | (766) | 2,874 | (5,298) |
Net cash used in financing activities | (327,934) | (43,116) | (122,810) |
Effect of exchange rate changes on cash and cash equivalents | (43,511) | (24,305) | (1,947) |
Reclassification of cash and cash equivalents to assets held for sale | (11,684) | 0 | 0 |
Net increase /(decrease) in cash and cash equivalents | (194,248) | 368,865 | (410,948) |
Cash and cash equivalents at beginning of year | 1,245,205 | 876,340 | 1,287,288 |
Cash and cash equivalents at end of year | 1,050,957 | 1,245,205 | 876,340 |
Supplemental cash flow disclosures: | |||
Cash paid for income taxes | (25,179) | (43,988) | (5,262) |
Cash paid for interest expense | (965) | (7,235) | (6,283) |
Barter transactions | 12,384 | 1,808 | 1,651 |
Supplemental schedule of non-cash investing activity: | |||
Changes in payables and other liabilities related to fixed assets and intangible assets additions | 35,470 | 20,270 | 53,309 |
Consideration payable for acquisitions and equity investment | $ 0 | $ 5,722 | $ 5,000 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] |
Beginning balance at Dec. 31, 2013 | $ 1,836,720 | $ 44 | $ 601,633 | $ (143,858) | $ 116,304 | $ 752,582 | $ 510,015 |
Issuance of common stock | 611 | 0 | 611 | 0 | 0 | 0 | 0 |
Repurchase of Changyou ADSs | (3,577) | 0 | (2,432) | 0 | 0 | 0 | (1,145) |
Repurchase of Sogou Series A Preferred Shares from noncontrolling shareholders | (47,285) | 0 | 26,276 | 0 | 0 | (27,747) | (45,814) |
Repurchase of Sogou Class A Ordinary Shares from noncontrolling shareholders | (24,679) | 0 | 0 | 0 | 0 | 0 | (24,679) |
Exercise of right to repurchase from China Web | 1,584 | 0 | 1,584 | 0 | 0 | 0 | 0 |
Purchase of equity interests of a VIE from a third party shareholder | (809) | 0 | 11 | 0 | 0 | 0 | (820) |
Disposal of noncontrolling interest | (652) | 0 | 0 | 0 | 0 | 0 | (652) |
Share-based compensation expense | 57,226 | 0 | 11,545 | 0 | 0 | 0 | 45,681 |
Settlement of share-based awards in subsidiary | 809 | 0 | 12,828 | 0 | 0 | 0 | (12,019) |
Acquisition of MoboTap | 53,424 | 0 | 0 | 0 | 0 | 0 | 53,424 |
Acquisition of noncontrolling interest in a subsidiary | (4,857) | 0 | (1,908) | 0 | 0 | 0 | (2,949) |
Net income /(loss) attributable to Sohu.com Inc. and noncontrolling interest shareholders | (171,219) | 0 | 0 | 0 | 0 | (138,910) | (32,309) |
Accumulated other comprehensive loss | (8,390) | 0 | 0 | 0 | (6,902) | 0 | (1,488) |
Ending balance at Dec. 31, 2014 | 1,688,906 | 44 | 650,148 | (143,858) | 109,402 | 585,925 | 487,245 |
Issuance of common stock | 2,126 | 1 | 2,125 | 0 | 0 | 0 | 0 |
Repurchase of Changyou ADSs | (14,506) | 0 | (9,971) | 0 | 0 | 0 | (4,535) |
Repurchase of Sogou Series A Preferred Shares from noncontrolling shareholders | (21,329) | 0 | 90,719 | 0 | 0 | (11,911) | (100,137) |
Share-based compensation expense | 53,561 | 0 | 30,181 | 0 | 0 | 0 | 23,380 |
Settlement of share-based awards in subsidiary | 516 | 0 | 34,697 | 0 | 0 | 0 | (34,181) |
Purchase of noncontrolling interest in RaidCall | 0 | 0 | 458 | 0 | 0 | 0 | (458) |
Noncontrolling interest recognized in domestic companies | 278 | 0 | 0 | 0 | 0 | 0 | 278 |
Net income /(loss) attributable to Sohu.com Inc. and noncontrolling interest shareholders | 108,855 | 0 | 0 | 0 | 0 | (37,687) | 146,542 |
Accumulated other comprehensive loss | (87,655) | 0 | 0 | 0 | (59,251) | 0 | (28,404) |
Ending balance at Dec. 31, 2015 | 1,730,752 | 45 | 798,357 | (143,858) | 50,151 | 536,327 | 489,730 |
Disposal of noncontrolling interest | (238) | 0 | 0 | 0 | 0 | 0 | (238) |
Share-based compensation expense | 19,120 | 0 | 2,678 | 0 | 0 | 0 | 16,442 |
Settlement of share-based awards in subsidiary | 337 | 0 | 19,501 | 0 | 0 | 0 | (19,164) |
Contribution from noncontrolling interest shareholder | 0 | 0 | 1,333 | 0 | 0 | 0 | (1,333) |
Net income /(loss) attributable to Sohu.com Inc. and noncontrolling interest shareholders | (114,973) | 0 | 0 | 0 | 0 | (224,021) | 109,048 |
Accumulated other comprehensive loss | (77,155) | 0 | 0 | 0 | (46,931) | 0 | (30,224) |
Others | (48) | 0 | (2) | 0 | 0 | 0 | (46) |
Ending balance at Dec. 31, 2016 | $ 1,557,795 | $ 45 | $ 821,867 | $ (143,858) | $ 3,220 | $ 312,306 | $ 564,215 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Organization and Nature of Operations [Abstract] | |
Organization and Nature of Operations | 1. Organization and Nature of Operations Sohu.com Inc. (NASDAQ: SOHU), a Delaware corporation organized in 1996, is a leading Chinese online media, search and game service group providing comprehensive online products and services on PCs and mobile devices in the People’s Republic of China (the “PRC” or “China”). Sohu.com Inc.’s businesses are conducted by Sohu.com Inc. and its subsidiaries and VIEs (collectively referred to as the “Sohu Group” or “the Group”). The Sohu Group consists of Sohu, which when referred to in this report, unless the context requires otherwise, excludes the businesses and the corresponding subsidiaries and VIEs of Sogou Inc. (“Sogou”) and Changyou.com Limited (“Changyou”), Sogou and Changyou. Sogou and Changyou are indirect controlled subsidiaries of Sohu.com Inc. Sohu is a leading Chinese language online media content and services provider. Sogou is a leading online search, client software and mobile Internet product provider in China. Changyou is a leading online game developer and operator in China as measured by the popularity of its PC game Tian Long Ba Bu (“TLBB”) and its mobile game TLBB 3D, and engages primarily in the development, operation and licensing of online games for PCs and mobile devices. Most of the Group’s operations are conducted through the Group’s China-based subsidiaries and VIEs. Through the operation of Sohu, Sogou and Changyou, the Sohu Group generates online advertising revenues, including brand advertising revenues and search and search-related revenues; online games revenues; and other revenues. Online advertising and online games are the Group’s core businesses. Sohu’s Business Brand Advertising Business Sohu’s main business is the brand advertising business, which offers to users, over Sohu’s matrices of Chinese language online media, various content, products and services across multiple Internet-enabled devices such as PCs, mobile phones and tablets. The majority of Sohu’s products and services are provided through Sohu Media Portal, Sohu Video and Focus. • Sohu Media Portal. • Sohu Video. • Focus. Revenues generated by the brand advertising business are classified as brand advertising revenues in the Sohu Group’s consolidated statements of comprehensive income. Other Business Sohu also engages in the other business, which consists primarily of paid subscription services, interactive broadcasting services, sub-licensing Sogou’s Business Search and Search-related Business The search and search-related business primarily offers advertisers pay-for-click Pay-for-click pay-for-click Revenues generated by the search and search-related business are classified as search and search-related revenues in the Sohu Group’s consolidated statements of comprehensive income. Other Business Sogou also engages in other business primarily by offering Internet value-added services (“IVAS”) with respect to the operation of Web games and mobile games developed by third parties, as well as other services and products provided to users. Revenues generated by Sogou from other business are classified as other revenues in the Sohu Group’s consolidated statements of comprehensive income. Changyou’s Business Changyou’s business lines consist of the online game business; the platform channel business, which consists primarily of online advertising and IVAS business; and the cinema advertising business. Online Game Business Changyou’s online game business offers to game players (a) PC games, which are interactive online games that are accessed and played simultaneously by hundreds of thousands of game players through personal computers and require that local client-end non-physical Changyou’s dominant game is TLBB, a PC based client-end Platform Channel Business Changyou’s platform channel business consists primarily of the operation of the 17173.com Website, one of the leading information portals in China, which provides news, electronic forums, online videos and other information services on online games to game players. Changyou’s platform channel business also offers a number of software applications for PCs and mobile devices through the Dolphin Browser and RaidCall. RaidCall provides online music and entertainment services, primarily in Taiwan. The Dolphin Browser, which is operated by MoboTap, is a gateway to a host of user activities on mobile devices, with the majority of its users based in Europe, Russia and Japan. As Changyou management had determined that the Dolphin Browser was unable to provide expected synergies with Changyou’s platform channel business, in 2016, Changyou’s Board of Director approved the disposal of Changyou’s 51% equity interest in MoboTap Inc. (collectively with its subsidiaries and VIEs “MoboTap”), which is the mobile technology developer behind the Dolphin Browser. As of December 31, 2016, Changyou has been negotiating with a potential buyer on the terms of disposal. Accordingly, the assets and liabilities attributable to MoboTap are classified as assets and liabilities held for sale and measured at the lower of their carrying amounts or their fair value, less cost to sell, in the Group’s consolidated balance sheet as of December 31, 2016. All revenues generated by the 17173.com Website are classified as brand advertising revenues, IVAS revenues generated by the Dolphin Browser and by RaidCall are classified as other revenues, and a relatively small amount of online game revenues generated by the Dolphin Browser are included in online game revenues, in the Group’s consolidated statements of comprehensive income. Cinema Advertising Business Changyou also operates a cinema advertising business, which consists primarily of the acquisition, from operators of movie theaters, and the sale, to advertisers, of pre-film |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Accounting Standards The consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”) to reflect the financial position and results of operations of the Sohu Group. Use of Estimates The preparation of these financial statements requires the Sohu Group to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going Basis of Consolidation and Recognition of Noncontrolling Interest The Sohu Group’s consolidated financial statements include the accounts of Sohu.com Inc. and its subsidiaries and consolidated VIEs. All intercompany transactions are eliminated. VIE Consolidation The Sohu Group’s VIEs are wholly or partially owned by certain employees of the Group as nominee shareholders. For consolidated VIEs, management made evaluations of the relationships between the Sohu Group and the VIEs and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluation, management also took into account the fact that, as a result of such contractual arrangements, the Group controls the shareholders’ voting interests in these VIEs. As a result of such evaluation, management concluded that the Sohu Group is the primary beneficiary of its consolidated VIEs. Noncontrolling Interest Recognition Noncontrolling interests are recognized to reflect the portion of the equity of subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholders. Currently, the noncontrolling interests in the Sohu Group’s consolidated financial statements primarily consist of noncontrolling interests for Sogou and Changyou. Noncontrolling Interest for Sogou Sogou’s Share Structure As of December 31, 2016, Sogou had outstanding a combined total of 334,746,495 ordinary shares and preferred shares held as follows: (i) Sohu.com Inc.: 131,697,750 Class A Ordinary Shares, of which 4,484,500 shares may be purchased by Sohu management and key employees under an option arrangement; (ii) Photon Group Limited, an investment vehicle of the Sohu Group’s Chairman and Chief Executive Officer Charles Zhang (“Photon”): 32,000,000 Series A Preferred Shares; (iii) Tencent: 6,757,875 Class A Ordinary Shares, 65,431,579 Series B Preferred Shares and 79,368,421 non-voting (iv) Various employees of Sogou and Sohu: 19,490,870 Class A Ordinary Shares. Sohu’s Shareholding in and Control of Sogou As of December 31, 2016, Sohu.com Inc. held approximately 36% of the outstanding equity capital of Sogou on a fully-diluted basis assuming for such purpose that all share options under the Sogou 2010 Share Incentive Plan and all share options under the Sohu Management Sogou Share Option Arrangement are granted and exercised, and that all of the Sogou Class A Ordinary Shares that Sogou has repurchased are re-issued non-voting re-issued As Sogou’s controlling shareholder, Sohu.com Inc. consolidates Sogou in its consolidated financial statements, and recognizes noncontrolling interest reflecting economic interests in Sogou held by shareholders other than Sohu.com Inc. (the “Sogou noncontrolling shareholders”). Sogou’s net income/(loss) attributable to the Sogou noncontrolling shareholders is recorded as noncontrolling interest in the Sohu Group’s consolidated statements of comprehensive income. Sogou’s cumulative results of operations attributable to the Sogou noncontrolling shareholders, along with changes in shareholders’ equity/(deficit) and adjustment for share-based compensation expense in relation to those share-based awards which are unvested and vested but not yet settled and the Sogou noncontrolling shareholders’ investments in Sogou Series A Preferred Shares and Series B Preferred Shares (collectively, the “Sogou Preferred Shares”) and Ordinary Shares are accounted for as a noncontrolling interest classified as permanent equity in the Sohu Group’s consolidated balance sheets, as the Sohu Group has the right to reject a redemption requested by the noncontrolling shareholders. These treatments are based on the terms governing the investment, and on the terms of the classes of Sogou shares held, by the noncontrolling shareholders in Sogou. Principles of Allocation of Sogou’s Profit and Loss By virtue of the terms of Sogou Preferred Shares and Class A Ordinary Shares and Class B Ordinary Shares, Sogou’s losses are allocated in the following order: (i) net losses are allocated to holders of Sogou Class A Ordinary Shares and the holder of Sogou Class B Ordinary Shares until their basis in Sogou decreased to zero; (ii) additional net losses are allocated to holders of Sogou Series A Preferred Shares until their basis in Sogou decreased to zero; (iii) additional net losses are allocated to the holder of Sogou Series B Preferred Shares until its basis in Sogou decreases to zero; and (iv) further net losses are allocated between Sohu.com Inc. and noncontrolling shareholders based on their shareholding percentage in Sogou. Net income from Sogou is allocated in the following order: (i) net income is allocated between Sohu.com Inc. and noncontrolling shareholders based on their shareholding percentage in Sogou until their basis in Sogou increases to zero; (ii) additional net income is allocated to the holder of Sogou Series B Preferred Shares to bring its basis back; (iii) additional net income is allocated to holders of Sogou Series A Preferred Shares to bring their basis back; (iv) further net income is allocated to holders of Sogou Class A Ordinary Shares and the holder of Sogou Class B Ordinary Shares to bring their basis back; and (v) further net income is allocated between Sohu.com Inc. and noncontrolling shareholders based on their shareholding percentage in Sogou. Key Terms of Sogou Preferred Shares The following is a summary of some of the key terms of the Sogou Preferred Shares under Sogou’s Memorandum and Articles of Association as currently in effect. • Dividend Rights Sogou may not declare or pay dividends on its Class A Ordinary Shares or Class B Ordinary Shares (collectively, “Ordinary Shares”) unless the holders of the Sogou Preferred Shares then outstanding first receive a dividend on each outstanding Preferred Share in an amount at least equal to the sum of (i) the dividends that would have been payable to the holder of such Preferred Share if such share had been converted into Ordinary Shares, at the then-applicable conversion rate, immediately prior to the record date for such dividend, and (ii) all accrued and unpaid Accruing Dividends. “Accruing Dividends” are calculated from the date of issuance of the Series A Preferred Shares at the rate per annum of $0.0375 per Series A Preferred Share and from the date of issuance of the Series B Preferred Shares at the rate per annum of $0.411 per Series B Preferred Share. • Liquidation Rights In the event of any “Liquidation Event,” such as the liquidation, dissolution or winding up of Sogou, a merger or consolidation of Sogou resulting in a change of control, the sale of substantially all of Sogou’s assets or similar events, the holders of Series B Preferred Shares are entitled to receive an amount per share equal to the greater of (i) $6.847 plus any unpaid Accruing Dividends or (ii) such amount per share as would have been payable if the Series B Preferred Shares had been converted into Ordinary Shares prior the Liquidation Event, and holders of Series A Preferred Shares are entitled to receive, after payment to the holders of the Series B Preferred Shares but before any payment to holders of Ordinary Shares, an amount equal to the greater of (i) 1.3 times their original investment in the Series A Preferred Shares plus all accrued but unpaid Accruing Dividends or (ii) such amount per share as would be payable if the Series A Preferred Shares had been converted into Ordinary Shares immediately prior to the Liquidation Event. • Redemption Rights The Sogou Preferred Shares are not redeemable at the option of the holders. • Conversion Rights Each Sogou Preferred Share is convertible, at the option of the holder, at any time, and without the payment of additional consideration by the holder. Each Sogou Preferred Share is convertible into such number of Class A Ordinary Shares as is determined, in the case of Series A Preferred Shares, by dividing $0.625 by the then-effective conversion price for Series A Preferred Shares, which is initially $0.625, and, in the case of Series B Preferred Shares, by dividing $7.267 by the then-effective conversion price for Series B Preferred Shares, which is initially $7.267. The conversion prices of the Sogou Preferred Shares are subject to adjustment on a weighted average basis upon the issuance of additional equity shares, or securities convertible into equity shares, at a price per share less than $0.625, in the case of Series A Preferred Shares, or less than $7.267, in the case of Series B Preferred Shares, subject to certain customary exceptions, such as shares issued pursuant to the Sogou 2010 Share Incentive Plan. Each Sogou Preferred Share will be automatically converted into Class A Ordinary Shares of Sogou upon the closing of a qualified IPO of Sogou based on the then-effective conversion ratio of such Sogou Preferred Share, which is currently one-for-one • Voting Rights Each holder of Sogou Preferred Shares is entitled to cast the number of votes equal to the number of Class A Ordinary Shares into which the Sogou Preferred Shares held by such holder are then convertible. • Other Rights The holders of Sogou Preferred Shares have various other rights typical of preferred share investments. Key Terms of Sogou Class A Ordinary Shares and Class B Ordinary Shares The Class A Ordinary Shares and Class B Ordinary Shares have identical rights, except that Class B Ordinary Shares do not have voting rights unless the holders of at least a majority of the then outstanding Class B Ordinary Shares elect, by written notice to Sogou, to convert them into shares with voting rights. Noncontrolling Interest for Changyou Changyou is a public company listed on the NASDAQ Global Select Market. As of December 31, 2016, Sohu.com Inc. held approximately 69% of the combined total of Changyou’s outstanding ordinary shares, and controlled approximately 96% of the total voting power in Changyou. As Changyou’s controlling shareholder, Sohu.com Inc. consolidates Changyou in its consolidated financial statements, and recognizes noncontrolling interest reflecting the economic interest in Changyou held by shareholders other than Sohu.com Inc.(the “Changyou noncontrolling shareholders”). Changyou’s net income /(loss) attributable to the Changyou noncontrolling shareholders is recorded as noncontrolling interest in the Sohu Group’s consolidated statements of comprehensive income, based on their share of the economic interest in Changyou. Changyou’s cumulative results of operations attributable to the Changyou noncontrolling shareholders, along with changes in shareholders’ equity, adjustment for share-based compensation expense in relation to those share-based awards which are unvested and vested but not yet settled and adjustment for changes in Sohu.com Inc.’s ownership in Changyou, are recorded as noncontrolling interest in the Sohu Group’s consolidated balance sheets. Segment Reporting The Sohu Group’s segments are business units that offer different services and are reviewed separately by the chief operating decision maker (the “CODM”), or the decision making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM is Sohu.com Inc.’s Chief Executive Officer. Revenue Recognition The Sohu Group recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. The recognition of revenues involves certain management judgments. The amount and timing of the revenues could be materially different for any period if management made different judgments or utilized different estimates. Barter trade transactions in which physical goods or services (other than advertising services) are received in exchange for advertising services are recorded based on the fair values of the goods and services received. For online advertising-for-online Online Advertising Revenues Online advertising revenues include revenues from brand advertising services as well as search and search-related services. The Group recognizes revenue for the amount of fees it receives from its advertisers, after deducting agent rebates and net of value-added tax (“VAT”) and related surcharges. Brand Advertising Revenues Business Model Through PCs and mobile devices, the Group provides advertisement placements to its advertisers on different Internet platforms and in different formats, which include banners, links, logos, buttons, full screen, pre-roll, mid-roll, in-feed Currently the brand advertising business has four main types of pricing models, consisting of the Fixed Price model, the Cost Per Impression (“CPM”) model, the E-commerce Fixed Price model Under the Fixed Price model, a contract is signed to establish a fixed price for the advertising services to be provided. Revenue is recognized based on the contract price and the period of display. CPM model Under the CPM model, the unit price for each qualifying display is fixed, but there is no overall fixed price for the advertising services stated in the contract with the advertiser. A qualifying display is defined as the appearance of an advertisement, where the advertisement meets criteria specified in the contract. Revenue is recognized based on the fees charged to the advertisers, which are based on the unit prices and the number of qualifying displays. E-commerce Under the e-commerce CPC model Under the CPC model, there is no overall fixed price for advertising services stated in the contract with the advertiser. The Group charges advertisers on a per-click Revenue Recognition For brand advertising revenue recognition, prior to entering into contracts, the Sohu Group makes a credit assessment of the advertisers. For contracts for which collectability is determined to be reasonably assured, the Sohu Group recognizes revenue when all revenue recognition criteria are met. In other cases, the Sohu Group only recognizes revenue when the cash is received and all other revenue recognition criteria are met. The Sohu Group treats advertising contracts with multiple deliverable elements as separate units of accounting for revenue recognition purposes and recognizes revenue on a periodic basis during the contract period when each deliverable service is provided. Since the contract price is for all deliverables under one advertising contract, the Sohu Group allocates the contract price among all the deliverables at the inception of the arrangement on the basis of their relative selling prices according to the selling price hierarchy established by ASU No. 2009-13 Search and Search-related Revenues Search and search-related services primarily include pay-for-click Pay-for-click Pay-for-click pay-for-click pay-for-click per-click pay-for-click per-click Online Marketing Services on Web Directories Operated by Sogou Online marketing services on Web directories operated by Sogou mainly consist of displaying advertisers’ promotional links on the Web pages of Web directories. Revenue for online marketing services on Web directories operated by Sogou is normally recognized on a straight-line basis over the contract period, provided the Sohu Group’s obligations under the contract have been met and all revenue recognition criteria have been met. Both pay-for-click pay-for-click pre-agreed Online Game Revenues Changyou’s online game revenues are generated primarily from its self-operated and licensed-out in-game Self-Operated Games Changyou is the primary obligor of its self-operated games. Changyou hosts the games on its own servers and is responsible for the sale and marketing of the games as well as customer service. Accordingly, revenues are recorded gross of revenue sharing-payments to third-party developers and/or mobile APP stores, but are net of VAT and discounts to game card distributors where applicable. Changyou obtains revenues from the sale of in-game PC Games Proceeds from the self-operation of PC games are collected from players and third-party game card distributors through sales of Changyou’s game points on its online payment platform and prepaid game cards. Self-operated PC games are either developed in house or licensed from third-party developers. For licensed PC games, Changyou remits a pre-agreed Mobile Games For self-operated mobile games, Changyou sells game points to its game players via third-party mobile APP stores. The mobile APP stores in turn pay Changyou proceeds after deducting their share of pre-agreed Self-operated mobile games are either developed in house or licensed from or jointly developed with third-party developers. For licensed and jointly developed mobile games, Changyou remits a pre-agreed Web Games Changyou continued to operate a small portfolio of self-operated Web games after its sale of the 7Road business in 2015. Proceeds from self-operated Web games are collected from players through the sale of game points. Licensed Out Games Changyou also authorizes third parties to operate its online games. Licensed out games include PC games and mobile games developed in house and mobile games jointly developed with third-party developers. Changyou receives monthly revenue-based royalty payments from all the third-party licensee operators. Changyou receives additional up-front pre-agreed Other Revenues Sohu Sohu also engages in the other business, which consists primarily of paid subscription services, interactive broadcasting services, sub-licensing Sogou Other revenues attributable to Sogou are primarily IVAS revenues derived from the operation of Web games and mobile games of third-party developers as well as other services and products that Sogou provides to users. Changyou Other revenues attributable to Changyou are primarily from its cinema advertising business and IVAS. In its cinema advertising business, Changyou provides clients advertising placements in slots that are shown in theaters before the screening of movies. The rights to place advertisements in such advertising slots are granted under contracts Changyou signs with different theaters. When all the recognition criteria are met, revenues from cinema advertising are recognized based on a percentage of the advertising slots actually delivered or on a straight-line basis over the contract period. Changyou provides IVAS primarily through software applications for PCs and mobile devices offered by MoboTap on the Dolphin Browser and by RaidCall. Revenues from IVAS are recognized during the period the service rendered or items consumed under the gross method, as Changyou is the principal obligor for provision of the services. Cost of Revenues Cost of Online Advertising Revenues Cost of online advertising revenues includes cost of revenues from brand advertising services as well as cost of revenues from search and search-related services. Cost of Brand Advertising Revenues Cost of brand advertising revenues mainly consists of content and license costs, bandwidth leasing costs, and salary and benefits expense. Cost of Search and Search-related Revenues Cost of search and search-related revenues mainly consists of traffic acquisition costs, bandwidth leasing costs, depreciation expenses, as well as salary and benefits expenses. Traffic acquisition costs represent payments made to Sogou Website Alliance members. Sogou pays Sogou Website Alliance members based either on revenue-sharing arrangements or on a pre-agreed pay-for-click Cost of Online Game Revenues Cost of online game revenues mainly consists of revenue-sharing payments, salary and benefits expense, bandwidth leasing costs, content and license costs, amortization and depreciation expenses, and other direct costs. Cost of Other Revenues Cost of other revenues mainly consists of payments to theaters and film production companies for pre-film Product Development Expenses Product development expenses mainly consist of salary and benefits expenses, content and license expenses, technical service fees, depreciation and amortization expenses, share-based compensation, and facilities expenses. These expenses are incurred for the enhancement and maintenance of the Sohu Group’s Internet platforms as well as for its products and services, including the development costs of online games prior to the establishment of technological feasibility and maintenance costs after the online games are available for marketing. Sales and Marketing Expenses Sales and marketing expenses mainly consist of advertising and promotional expenses, salary and benefits expenses, travel expenses, and facility expenses. Advertising and promotional expenses generally represent the expenses of promotions to create or stimulate a positive image of the Sohu Group or a desire to subscribe for the Group’s products and services. Advertising and promotional expenses are expensed as incurred. General and Administrative Expenses General and administrative expenses mainly consist of salary and benefits expenses, professional service fees, facility expenses, travel expenses, share-based compensation expense, and depreciation and amortization expenses. Share-based Compensation Expense Sohu (excluding Fox Video Limited), Sogou, Changyou, and Fox Video Limited (“Sohu Video”) have incentive plans for the granting of share-based awards, including stock options, share options and restricted share units, to members of the boards of directors, management and other key employees. For share-based awards for which a grant date has occurred, share-based compensation expense is recognized as costs and expenses in the consolidated statements of comprehensive income based on the fair value of the related share-based awards on their grant dates. For share-based awards for which the service inception date precedes the grant date, share-based compensation expense is recognized as costs and expenses in the consolidated statements of comprehensive income beginning on the service inception date and is re-measured Sohu (excluding Sohu Video), Sogou, and Changyou Share-based Awards Sohu (excluding Sohu Video) Share-based Awards In determining the fair value of stock options granted by Sohu (excluding Sohu Video) as share-based awards before 2006, the Black-Scholes valuation model was applied. In determining the fair value of restricted share units granted, the public market price of the underlying shares on the grant dates was applied. Options for the purchase of Sohu common stock contractually granted under the Sohu 2010 Stock Incentive Plan are subject to vesting in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and certain subjective performance targets. Under ASC 718-10-25 ASC 718-10-55 re-measured Sogou Share-based Awards In determining the fair value of share options granted by Sogou as share-based awards, the income approach /discounted cash flow method with a discount for lack of marketability was applied, given that the shares underlying the awards were not publicly traded at the time of grant. Certain persons who became Sogou employees when Tencent’s Soso search-related businesses were transferred to Sogou on September 16, 2013 had been granted restricted share units under Tencent’s share award arrangements prior to the transfer of the businesses to Sogou. These Tencent restricted share units will continue to vest under the original Tencent share award arrangements provided the transferred employees continue to be employed by Sogou during the requisite service period. After the transfer of the Soso search-related businesses to Sogou, Sogou applied the guidance in ASC 505-50 Changyou Share-based Awards In determining the fair value of ordinary shares and restricted share units granted by Changyou as share-based awards in 2008, the income approach /discounted cash flow method with a discount for lack of marketability was applied, given that the shares underlying the awards were not publicly traded at the time of grant. In determining the fair value of restricted share units granted in 2009 shortly before Changyou’s initial public offering, the fair value of the underlying shares was determined based on Changyou’s offering price for its initial public offering. In determining the fair value of restricted share units granted after Changyou’s initial public offering, the public market price of the underlying shares on the grant dates was applied. Options for the purchase of Changyou Class A ordinary shares contractually granted under the Changyou 2014 Share Incentive Plan are subject to vesting in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and certain subjective performance targets. Under ASC 718-10-25 ASC 718-10-55 re-measured Compensation Expense Recognition For options and restricted share units granted with respect to Sohu (excluding Sohu Video) shares and Changyou shares, compensation expense is recognized on an accelerated basis over the requisite service period. For share options granted with respect to Sogou shares, compensation expense is recognized on a straight-line basis over the estimated period during which the service period requirement and performance target will be met. For Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, compensation expense is recognized by Sogou on an accelerated basis over the requisite service period, and the fair value of the share-based compensation is re-measured Sohu Video Share-based Awards On January 4, 2012, Sohu Video, the holding entity of Sohu’s video division, adopted a 2011 Share Incentive Plan (the “Video 2011 Share Incentive Plan”) which provides for the issuance of up to 25,000,000 ordinary shares of Sohu Video (representing approximately 10% of the outstanding Sohu Video shares on a fully-diluted basis) to management and key employees of the video division and to Sohu management. As of December 31, 2016, grants of options for the purchase of 16,368,200 ordinary shares of Sohu Video had been contractually made, of which options for the purchase of 4,972,800 ordinary shares were vested. For purposes of ASC 718-10-25 ASC 718-10-55 re-measured, re-measure, Taxation Income Taxes Income taxes are accounted for using an asset and liability approach which requires the recognition of income taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Group’s financial statements or tax returns. Deferred income taxes are determined based on the differences between the accounting basis and the tax basis of assets and liabilities and are measured using the currently enacted tax rates and laws. Deferred tax assets are reduced by a valuation allowance, if based on available evidence, it is considered that it is more likely than not that some portion of or all of the deferred tax assets will not be realized. In making such determination, the Group considers factors including future reversals of existing taxable temporary differences, future profitability, and tax planning strategies. If events were to occur in the future that would allow the Group to realize more of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the deferred tax assets that would increase income for the period when those events occurred. If events were to occur in the future that would require the Group to realize less of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the valuation allowance against deferred tax assets that would decrease income for the period when those events occurred. Significant management judgment is required in determining income tax expense and deferred tax assets and liabilities. The Group’s deferred tax assets relate to net operating losses and temporary differences between accounting basis and tax basis for its China-Based Subsidiaries and VIEs, which are subject to corporate income tax in the PRC under the PRC Corporate Income Tax Law (the “CIT Law”). In November 2015, the FASB issued Accounting Standards Update 2015-17, non-current non-current The Group changed the manner in which it classifies deferred tax assets and liabilities retrospectively from the fourth quarter of 2016 due to the early adoption of Accounting Standards Update 2015-17, re-classified PRC Withholding Tax on Dividends The CIT Law imposes a 10% withholding income tax on dividends distributed by foreign invested enterprises in the PRC to their immediate holding companies outside Mainland China. A lower withholding tax rate may be applied if there is a tax treaty between Mainland China and the jurisdiction of the foreign holding company. A holding company in Hong Kong, for example, will be subject to a 5% withholding tax rate under an arrangement between the PRC and the Hong Kong Special Administrative Region on the “Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital,” if such holding company is considered a non-PRC PRC Value Added Tax Effective September 1, 2012, a pilot program (the “Pilot Program”) for transition from the imposition of PRC business tax (“Business Tax”) to the imposition of value-added tax (“VAT”) was implemented for revenues from certain industries and certain cities. Prior to Pilot Program, the Group was mainly subject to a 5% PRC business tax and related surcharges on revenues in the PRC. PRC business tax and the related surcharges are recognized when the revenue is earned. On May 1, 2016, the transition from the imposition of PRC business tax (“Business Tax”) to the imposition of VAT was expanded to all industries in China, and all of the Sohu Group’s revenues have been subject to VAT since that date. To record VAT payable, the Group adopted the net presentation method, which presents the difference between the output VAT (at a rate of 6%) and the available input VAT amount (at the rate applicable to the supplier). U.S. Corporate Income Tax Sohu.com Inc. is a Delaware corporation that is subject to U.S. corporate income tax on its taxable income at a rate of up to 35%. To the extent that portions of its U.S. taxable income, such as Subpart F income or a dividend, are determined to be from sources outside of the U.S., subject to certain limitations, Sohu.com Inc. may be able to claim foreign tax credits to offset its U.S. income tax liabilities. Any remaining liabilities are accrued in the Company’s consolidated statements of comprehensive income and estimated tax payments are made when required by U.S. law. Uncertain Tax Positions The Sohu Group is subject to various taxes in different jurisdictions, primarily the U.S. and the PRC. Management reviews regularly the adequacy of the provisions for taxes as they relate to the Group’s income and transactions. In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step two-step Net Income /(Loss) per Share Basic net income / (loss) per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income / (loss) per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares comprise shares issuable upon the exercise or settlement of share-based awards using the treasury stock method. The dilutive effect of share-based awards with performance requirements is not considered before the performance targets are actually met. The computation of diluted net income / (loss) per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net income / (loss) per share. Additionally, for purposes of calculating the numerator of diluted net income / (loss) per share, the net income / (loss) attributable |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information [Abstract] | |
Segment Information | 3. Segment Information The Sohu Group’s segments are business units that offer different services and are reviewed separately by the CODM, or the decision making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM is Sohu.com Inc.’s Chief Executive Officer. There are three segments in the Group, consisting of the Sohu segment, the Sogou segment, and the Changyou segment. The following tables present summary information by segment (in thousands): Year Ended December 31, 2014 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 546,262 $ 386,382 $ 755,266 $ (14,833 ) $ 1,673,077 Segment cost of revenues (320,035 ) (163,426 ) (201,710 ) 1,509 (683,662 ) Segment gross profit 226,227 222,956 553,556 (13,324 ) 989,415 SBC (2) in cost of revenues (728 ) (1,092 ) (152 ) 0 (1,972 ) Gross profit 225,499 221,864 553,404 (13,324 ) 987,443 Operating expenses: Product development (3) (93,227 ) (102,329 ) (193,044 ) 4,297 (384,303 ) Sales and marketing (1) (220,479 ) (73,932 ) (241,202 ) 14,744 (520,869 ) General and administrative (43,640 ) (13,446 ) (104,663 ) (733 ) (162,482 ) Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions 0 0 (52,282 ) 0 (52,282 ) SBC (2) in operating expenses (7,378 ) (62,950 ) (3,962 ) 1,820 (72,470 ) Total operating expenses (364,724 ) (252,657 ) (595,153 ) 20,128 (1,192,406 ) Operating loss (139,225 ) (30,793 ) (41,749 ) 6,804 (204,963 ) Other income (3) 8,369 2,462 4,112 (4,984 ) 9,959 Interest income 8,696 2,773 26,091 0 37,560 Interest expense (131 ) 0 (6,452 ) 0 (6,583 ) Exchange difference (325 ) (149 ) (668 ) 0 (1,142 ) Loss before income tax expense (122,616 ) (25,707 ) (18,666 ) 1,820 (165,169 ) Income tax expense (3,557 ) 0 (2,493 ) 0 (6,050 ) Net loss $ (126,173 ) $ (25,707 ) $ (21,159 ) $ 1,820 $ (171,219 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Year Ended December 31, 2015 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 590,471 $ 591,803 $ 761,636 $ (6,819 ) $ 1,937,091 Segment cost of revenues (393,564 ) (247,949 ) (216,727 ) 924 (857,316 ) Segment gross profit 196,907 343,854 544,909 (5,895 ) 1,079,775 SBC (2) in cost of revenues (1,381 ) (330 ) (37 ) 0 (1,748 ) Gross profit 195,526 343,524 544,872 (5,895 ) 1,078,027 Operating expenses: Product development (3) (94,392 ) (124,210 ) (165,130 ) 4,932 (378,800 ) Sales and marketing (1) (203,332 ) (93,055 ) (91,334 ) 6,845 (380,876 ) General and administrative (57,014 ) (14,422 ) (71,771 ) (656 ) (143,863 ) Goodwill impairment and impairment of intangible assets acquired as part of a business acquisition 0 0 (40,324 ) 0 (40,324 ) SBC (2) in operating expenses (26,743 ) (10,049 ) (14,988 ) 85 (51,695 ) Total operating expenses (381,481 ) (241,736 ) (383,547 ) 11,206 (995,558 ) Operating profit /(loss) (185,955 ) 101,788 161,325 5,311 82,469 Other income (3) (4) 92,455 1,142 64,961 (84,032 ) 74,526 Interest income (5) 7,690 5,332 23,779 (6,158 ) 30,643 Interest expense (5) (5,007 ) 0 (8,335 ) 6,158 (7,184 ) Exchange difference 1,716 667 2,954 0 5,337 Income /(loss) before income tax expense (89,101 ) 108,929 244,684 (78,721 ) 185,791 Income tax expense (13,451 ) (9,430 ) (54,055 ) 0 (76,936 ) Net income /(loss) $ (102,552 ) $ 99,499 $ 190,629 $ (78,721 ) $ 108,855 Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): In the third quarter of 2015, Sogou purchased from Sohu 24.0 million Series A Preferred Shares of Sogou for $78.8 million. Sohu recognized $78.8 million in other income, which was eliminated in the Group’s consolidated statements of comprehensive income. Note (5): The elimination represents interest income/ (expense) resulting from intracompany loans between the Sohu segment and the Changyou segment. Year Ended December 31, 2016 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 468,515 $ 660,408 $ 525,385 $ (3,877 ) $ 1,650,431 Segment cost of revenues (391,417 ) (302,565 ) (165,779 ) 327 (859,434 ) Segment gross profit 77,098 357,843 359,606 (3,550 ) 790,997 SBC (2) in cost of revenues (164 ) (171 ) (31 ) 0 (366 ) Gross profit 76,934 357,672 359,575 (3,550 ) 790,631 Operating expenses: Product development (3) (96,815 ) (132,749 ) (118,738 ) 4,342 (343,960 ) Sales and marketing (1) (259,800 ) (121,303 ) (55,971 ) 4,688 (432,386 ) General and administrative (47,804 ) (19,308 ) (45,642 ) 89 (112,665 ) SBC (2) in operating expenses (1,703 ) (8,680 ) (8,371 ) 0 (18,754 ) Total operating expenses (406,122 ) (282,040 ) (228,722 ) 9,119 (907,765 ) Operating profit /(loss) (329,188 ) 75,632 130,853 5,569 (117,134 ) Other income /(expense) (3) 5,360 (26,027 ) 15,523 (5,569 ) (10,713 ) Interest income (4) 8,879 5,198 21,490 (13,068 ) 22,499 Interest expense (4) (10,103 ) 0 (4,321 ) 13,068 (1,356 ) Exchange difference 2,349 5,346 5,108 0 12,803 Income /(loss) before income tax benefit /(expense) (322,703 ) 60,149 168,653 0 (93,901 ) Income tax benefit /(expense) 538 (27 ) (21,583 ) 0 (21,072 ) Net income /(loss) $ (322,165 ) $ 60,122 $ 147,070 $ 0 $ (114,973 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): The elimination represents interest income/ (expense) resulting from intracompany loans between the Sohu segment and the Changyou segment. As of December 31, 2015 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 430,804 $ 244,484 $ 569,917 $ 0 $ 1,245,205 Accounts receivable, net 176,759 28,986 67,959 (87 ) 273,617 Fixed assets, net 223,939 70,447 214,306 0 508,692 Total assets (1) $ 1,356,263 $ 387,875 $ 1,779,506 $ (481,450 ) $ 3,042,194 Note (1): The elimination for segment assets mainly consists of elimination of intracompany loans between the Sohu segment and the Changyou segment, and elimination of long-term investments in subsidiaries and consolidated VIEs. As of December 31, 2016 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 167,691 $ 286,078 $ 597,188 $ 0 $ 1,050,957 Accounts receivable, net 100,317 41,781 47,150 (81 ) 189,167 Fixed assets, net 196,839 117,022 189,770 0 503,631 Total assets (1) $ 1,241,844 $ 499,589 $ 1,708,037 $ (885,780 ) $ 2,563,690 Note (1): The elimination for segment assets mainly consists of elimination of intracompany loans between the Sohu segment and the Changyou segment, and elimination of long-term investments in subsidiaries and consolidated VIEs. |
Share-based Compensation Expens
Share-based Compensation Expense | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation Expense [Abstract] | |
Share-based Compensation Expense | 4. Share-based Compensation Expense Sohu (excluding Fox Video Limited), Sogou, Changyou, and Fox Video Limited (“Sohu Video”) have incentive plans for the granting of share-based awards, including stock options, share options and restricted share units, to members of the boards of directors, management and other key employees. Share-based compensation expense was recognized in costs and expenses for the years ended December 31, 2014, 2015 and 2016 as follows (in thousands): Year Ended December 31, Share-based compensation expense 2014 2015 2016 Cost of revenues $ 1,973 $ 1,748 $ 366 Product development expenses 24,982 19,344 9,184 Sales and marketing expenses 5,645 3,054 2,394 General and administrative expenses 41,843 29,297 7,176 $ 74,443 $ 53,443 $ 19,120 Share-based compensation expense was recognized for share awards of Sohu (excluding Sohu Video), Sogou, Changyou and Sohu Video as follows (in thousands): Year Ended December 31, Share-based compensation expense 2014 2015 2016 For Sohu (excluding Sohu Video) share-based awards $ 4,410 $ 27,811 $ 2,761 For Sogou share-based awards (1) 61,918 10,310 8,802 For Changyou share-based awards 4,087 15,024 8,402 For Sohu Video share-based awards (2) 4,028 298 (845 ) $ 74,443 $ 53,443 $ 19,120 Note (1): Compensation expense for Sogou share-based awards also includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of Sogou Class A Ordinary Shares that Sogou repurchased in the second quarter of 2014. Note (2):The negative amount resulted from re-measured There was no capitalized share-based compensation expense for the years ended December 31, 2016, 2015 and 2014. |
Advertising and Promotional Exp
Advertising and Promotional Expenses, included in Sales and Marketing Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Advertising and Promotional Expenses, included in Sales and Marketing Expenses [Abstract] | |
Advertising and Promotional Expenses, included in Sales and Marketing Expenses | 5. Advertising and Promotional Expenses, included in Sales and Marketing Expenses Advertising and promotional expenses are included in sales and marketing expenses, and generally represent the expenses of promotions to create or stimulate a positive image of the Sohu Group or a desire to subscribe for the GroupÂ’s products and services. Advertising expenses are expensed as incurred. For the years ended December 31, 2016, 2015 and 2014, advertising and promotional expenses recognized in the consolidated statements of comprehensive income were $270.2 million, $196.9 million and $310.7 million, respectively. |
Other Income _(Expense), net
Other Income /(Expense), net | 12 Months Ended |
Dec. 31, 2016 | |
Other Income /(Expense), net [Abstract] | |
Other Income /(Expense), net | 6. Other Income /(Expense), net The following table summarizes the Sohu GroupÂ’s other income /(expense) (in thousands): Year Ended December 31, 2014 2015 2016 Donations (1) $ (683 ) $ (1,192 ) $ (27,982 ) Investment income/(expense) (2) 2,039 60,264 (1,908 ) Gain from the changes in fair value of financial instruments 3,137 9,374 13,133 Government grant 3,618 2,839 2,112 Change in fair value of China Web put option 2,304 0 0 Others (456 ) 3,241 3,932 $ 9,959 $ 74,526 $ (10,713 ) Note (1): In the second quarter of 2016, the Sohu Group recognized a one-time Note (2): The $60.3 million in investment income in 2015 primarily included a $55.1 million disposal gain recognized by Changyou for its sale of the 7Road business and certain Changyou subsidiaries and a $13.0 million disposal gain recognized by Sohu for its sale of an equity investment, offset by an $8.9 million investment loss from the GroupÂ’s other equity investments. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | 7. Balance Sheet Components (In thousands) As of December 31, 2015 2016 Cash and cash equivalents Cash $ 517,973 $ 424,260 Cash equivalents 727,232 626,697 $ 1,245,205 $ 1,050,957 Accounts receivable, net Accounts receivable: $ 277,593 $ 194,008 Allowance for doubtful accounts: Balance at the beginning of year (4,068 ) (3,976 ) Additional provision for bad debt, net of recoveries (2,175 ) (7,109 ) Write-offs 2,064 5,992 Exchange difference 203 252 Balance at the end of year (3,976 ) (4,841 ) $ 273,617 $ 189,167 Prepaid and other current assets Prepaid content and license $ 57,910 $ 119,810 Prepaid taxes 13,073 30,308 Matching loan due from a related party (See Note 8) 12,740 29,019 Loans to third parties 9,361 25,494 Due from Shenzhen 7Road 20,579 12,509 Prepaid cost of revenue 8,458 10,085 Prepaid rental deposit 10,231 9,817 Receivables from third party payment platforms 3,673 4,027 Employee advances 3,844 4,013 Due from a related party 3,080 0 Interest receivable 1,058 1,595 Prepaid advertising and promotion fees 1,905 1,506 Prepaid office rent and facilities expenses 2,223 1,378 Others 6,082 10,572 $ 154,217 $ 260,133 Prepaid non-current Prepaid PRC income tax for the sale of assets associated with 17173.com by Sohu to Changyou $ 6,067 $ 4,733 Others 187 1 $ 6,254 $ 4,734 Other short-term liabilities Deposit received from membership card buyers $ 88,990 $ 61,708 Matching loan due to a related party (See Note 8) 13,005 28,678 Contract deposits from advertisers 21,367 24,385 Donation payable 0 17,299 Consideration payable for equity investment 5,390 5,280 Early exercise of Sogou share options for trust arrangements 4,530 4,504 Accrued liabilities to suppliers 4,110 3,817 Withholding employee individual income tax for options 2,382 2,382 Accrued Business Tax arising from the sale of assets associated with 17173.com by Sohu to Changyou 1,647 1,625 Government grant 1,694 0 Others 10,902 9,637 $ 154,017 $ 159,315 Receipts in advance and deferred revenue Receipts in advance relating to: – brand advertising business $ 20,498 $ 12,332 – search and search-related business 65,911 59,593 – online game business 20,244 15,225 – others business 0 2,732 Total receipts in advance 106,653 89,882 Deferred revenue 28,732 29,069 $ 135,385 $ 118,951 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8. Related Party Transactions ChangyouÂ’s Loan Arrangements with SoEasy Commencing in April 2015, certain subsidiaries of Changyou and certain subsidiaries of SoEasy entered into a series of loan agreements pursuant to which the subsidiaries of Changyou are entitled to draw down HK dollar-denominated or U.S. dollar-denominated loans from the SoEasy subsidiaries and the SoEasy subsidiaries are entitled to draw down equivalent RMB-denominated During the first quarter of 2016, Changyou drew down from SoEasy U.S. dollar-denominated loans of approximately $29.9 million and granted RMB-denominated RMB-denominated RMB-denominated As of December 31, 2015, Changyou had drawn down from SoEasy loans in an aggregate principal amount of HKD100 million (approximately $12.9 million), which is recorded in other short-term liabilities, and SoEasy had drawn down from Changyou loans in an aggregate principal amount of RMB80 million (approximately $12.3 million), which is recorded in prepaid and other current assets . For the year ended December 31, 2015, interest income that Changyou earned from the RMB-denominated Other Information For the year of 2016, the Sohu Group generated brand advertising revenue from SoEasy of $0.9 million, and incurred sales and marketing expense for SoEasy of $0.2 million. |
Intracompany Loan and Share Ple
Intracompany Loan and Share Pledge Agreement | 12 Months Ended |
Dec. 31, 2016 | |
Intracompany Loan and Share Pledge Agreement [Abstract] | |
Intracompany Loan and Share Pledge Agreement | 9. Intracompany Loan and Share Pledge Agreement On October 24, 2016, Beijing Sohu New Media Information Technology Co., Ltd. (“Sohu Media”) entered into a loan agreement (the “Loan Agreement”) with Beijing AmazGame Age Internet Technology Co., Ltd. (“AmazGame”), pursuant to which Sohu Media may borrow from time to time from AmazGame up to RMB1.00 billion (or approximately US$148.64 million). The first request for an advance under the Loan Agreement must be made on or prior to December 31, 2016, and requests for further advances may be made for one year following the initial advance. Such one-year one-year Also on October 24, 2016, Sohu.com (Game) Limited (“Sohu Game”), a Cayman Islands company that is an indirect subsidiary of Sohu and is the direct parent of Changyou, and Changyou entered into a share pledge agreement (the “Share Pledge Agreement”) pursuant to which Sohu Game pledged to Changyou an agreed-upon number of Changyou Class B ordinary shares of Changyou held by Sohu Game. The share pledge agreement will give Changyou the right to apply the outstanding principal and accrued interest on the loan to the repurchase of Changyou Class B ordinary shares from Sohu Game in the event that such principal and interest are not paid when due. In December 2016, Sohu Media received the first advance of RMB500.0 million (or US$72.1 million) from AmazGame. The intracompany loan has been eliminated upon consolidation. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 10. Fair Value Measurements Fair Value of Financial Instruments The Sohu Group’s financial instruments mainly include cash equivalents, short-term investments, accounts receivable, assets held for sale, prepaid and other current assets, long-term investments (including available-for-sale U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is: Level 1 – observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – include other inputs that are directly or indirectly observable in the market place. Level 3 – unobservable inputs which are supported by little or no market activity. Financial Instruments Measured at Fair Value The following table sets forth financial instruments, measured at fair value by level within the fair value hierarchy, as of December 31, 2015 (in thousands): Fair value measurements at reporting date using Items As of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 727,232 $ 0 $ 727,232 $ 0 Restricted time deposits 363,979 0 363,979 0 Short-term investments 174,515 0 174,515 0 Available-for-sale 14,301 14,301 0 0 Total $ 1,280,027 $ 14,301 $ 1,265,726 $ 0 The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy, as of December 31, 2016 (in thousands): Fair value measurements at reporting date using Items As of December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 626,697 $ 0 $ 626,697 $ 0 Short-term investments 247,926 0 247,926 0 Available-for-sale 10,381 10,381 0 0 Foreign exchange forward contracts 3,040 0 3,040 0 Restricted time deposits 269 0 269 0 Total $ 888,313 $ 10,381 $ 877,932 $ 0 Cash Equivalents The Sohu Group’s cash equivalents mainly consist of time deposits with original maturities of three months or less, and highly liquid investments that are readily convertible to known amounts of cash. The fair values of cash equivalents are determined based on the pervasive interest rates in the market. The Group classifies the valuation techniques that use the pervasive interest rates input as Level 2 of fair value measurements. Generally there are no quoted prices in active markets for identical cash equivalents at the reporting date. In order to determine the fair value, the Group must use the discounted cash flow method and observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Short-term Investments In accordance with ASC 825 As of December 31, 2016 and 2015, the Sohu Group’s investment in financial instruments was $247.9 million and $174.5 million, respectively. The investment instruments were issued by commercial banks in China, and have a variable interest rate indexed to performance of underlying assets. Since these investments’ maturity dates are within one year, they are classified as short-term investments. For the year ended December 31, 2016, 2015 and 2014, the Sohu Group recorded in the consolidated statements of comprehensive income the gain from the changes in the fair value of short-term investments in the amounts of $10.1 million, $9.4 million and $3.1 million, respectively. Available-for-Sale Available-for-sale available-for-sale available-for-sale Assets and Liabilities Held for Sale In 2016, Changyou’s Board of Directors approved the disposal of the 51% equity interest in MoboTap, which is the mobile technology developer behind the Dolphin Browser. As of December 31, 2016, Changyou has been negotiating with a potential buyer on the terms of disposal. Accordingly, the assets and liabilities attributable to MoboTap are classified as assets and liabilities held for sale and measured at the lower of their carrying amounts or their fair values, less cost to sell, in the consolidated balance sheet as of December 31, 2016 and there is no impairment recognized in the consolidated statements of comprehensive income in 2016. Details of the aggregate assets and liabilities at December 31, 2016 are as follows (in thousands): As of December 31, Cash and cash equivalents $ 11,684 Prepaid and other current assets 2,469 Goodwill 83,470 Intangible assets 5,456 Assets held for sale $ 103,079 Other liabilities 3,902 Liabilities held for sale $ 3,902 Foreign Exchange Forward Contracts In September 2016, Changyou entered into foreign exchange forward contracts with banks in an aggregate nominal amount of $100 million. Changyou entered into such foreign exchange forward contracts in compliance with its risk management policy for the purpose of eliminating the negative impact on earnings and equity resulting from fluctuations in the exchange rate between the U.S. dollar and the RMB. There was no cash collateral or settlement under the forward contracts as of December 31, 2016. For the year ended December 31, 2016, the Sohu Group recorded the gain from the changes in the fair value of forward contracts of $3.0 million in the consolidated statements of comprehensive income. The Group estimated the fair values of foreign exchange forward contracts using the Black-Scholes model. The fair values of the forward contracts were estimated based on quoted forward exchange prices at the reporting date. The Group classifies the fair value measurement of the forward contracts based on such inputs as Level 2 of fair value measurements. Restricted Time Deposits Restricted time deposits are valued based on the prevailing interest rates in the market using the discounted cash flow method. The Sohu Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. Collateral related to Sogou Incentive Shares Trust Arrangements In February 2013, Sohu deposited $9.0 million in cash into restricted time deposit accounts at a bank as collateral for credit facilities provided by the bank to certain Sogou employees. The facilities were intended to fund the employees’ early exercise of Sogou share options and related PRC individual income tax. In the fourth quarter of 2016, all of these credit facilities were repaid to the bank and the $9.0 million restricted time deposit that secured these facilities had been released. Changyou Loans from Offshore Banks, Secured by Time Deposits Commencing in 2012, Changyou drew down loans from offshore branches of certain banks, which were secured by an equivalent or greater amount of RMB deposits by Changyou in the onshore branches of such banks. The loans from the offshore branches of the lending banks were classified as short-term and long-term bank loans based on the loans’ payment terms. In the first quarter of 2016, Changyou repaid all of the remaining bank loans of $344.5 million, and restricted time deposits of $354.7 million that secured these loans were released. For the years ended December 31, 2016, 2015 and 2014, interest income from the restricted time deposits securing the loans was $0.5 million, $12.8 million and $16.3 million, respectively, and interest expense on the bank loans was $0.6 million, $7.1 million and $6.4 million, respectively. Other Financial Instruments The fair values of other financial instruments are estimated for disclosure purposes as follows: Long-term Investment Long-term Investment in SoEasy Under an agreement between Sohu and SoEasy Internet Finance Group Limited (“SoEasy”) entered into in August 2014, Sohu invested $4.8 million and $16.1 million in SoEasy on August 2014 and April 2015, respectively. In February 2016, Sohu invested an additional $10.5 million in SoEasy. Sohu accounted for its investments in SoEasy under long-term investments. These investments include both preferred shares and common shares. Sohu accounted for its investment in SoEasy’s preferred shares under the cost method, since they were not considered to be common shares in substance and had no readily determinable fair value. Sohu accounted for its investment in SoEasy’s common shares under the equity method, since Sohu can exercise significant influence but does not own a majority of SoEasy’s equity capital or control SoEasy. As of December 31, 2016, the carrying value of Sohu’s investment in SoEasy was $25.0 million. Long-term Investment in Zhihu In September 2015 and December 2016, Sogou invested $12.0 million and $5.0 million, respectively, in Zhihu Technology Limited (“Zhihu”), a company that engages primarily in the business of operating an online question and answer-based knowledge and information-sharing platform. Sogou accounted for the investment in Zhihu using the cost method, since Sogou does not have significant influence over Zhihu. Short-term Receivables and Payables Accounts receivable and prepaid and other current assets are financial assets with carrying values that approximate fair value due to their short-term nature. Short-term accounts payable, accrued liabilities, receipts in advance and deferred revenue and other short-term liabilities are financial liabilities with carrying values that approximate fair value due to their short-term nature. For short-term receivables and payables, the Group estimated fair values using the discounted cash flow method, which is unobservable in the market. The Group classifies the valuation technique as Level 2 of fair value measurements. Long-term Payables Long-term accounts payable are financial liabilities with carrying values that approximate fair value due to any changes in fair value, after considering the discount rate, being immaterial. For long-term accounts payable, the Group estimated fair values using the discounted cash flow method, which is unobservable in the market. The Sohu Group classifies the valuation technique as Level 2 of fair value measurements. Assets Measured at Fair Value on a Nonrecurring Basis The following table sets forth assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy as of December 31, 2015 and 2016 (in thousands): Fair value measurements at reporting date using Items As of December 31, Quoted Prices in Active for Identical (Level 1) Significant Other Observable (Level 2) Significant Unobservable Inputs (Level 3) Total Prepaid and other current assets $ 154,217 $ 0 $ 0 $ 154,217 6,769 Intangible assets, net 55,415 0 0 55,415 19,947 Goodwill 154,219 0 0 154,219 31,445 $ 363,851 $ 0 $ 0 $ 363,851 58,161 Fair value measurements at reporting date using Items As of December 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable (Level 2) Significant Unobservable Inputs (Level 3) Total Prepaid and other current assets $ 260,133 $ 0 $ 0 $ 260,133 19,654 Intangible assets, net 32,131 0 0 32,131 3,252 Goodwill 68,290 0 0 68,290 0 $ 360,554 $ 0 $ 0 $ 360,554 22,906 Prepaid and other current assets Prepaid and other current assets primarily comprise purchased video content with a remaining amortization period of less than one year, prepaid taxes, matching loan due from a related party, loans to third parties and a receivable from Shenzhen 7Road. The impairment losses recognized for prepaid and other current assets were mainly due to Sohu Video purchased content and license rights. See Note 12 – Intangible Assets, Net. Intangible Assets Intangible assets mainly comprise domain names and trademarks, purchased video content, operating rights for licensed games, computer software, cinema advertising slot rights, and developed technologies. The impairment losses recognized for intangible assets were mainly due to Sohu Video purchased video content and Changyou purchased content and license rights to games. See Note 12 – Intangible Assets, Net. Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Group’s acquisitions of interests in its subsidiaries and consolidated VIEs. See Note 13 – Goodwill. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2016 | |
Fixed Assets [Abstract] | |
Fixed Assets | 11. Fixed Assets The following table summarizes the Sohu GroupÂ’s fixed assets (in thousands): As of December 31, 2015 2016 Fixed assets, net Office buildings $ 393,938 $ 368,758 Computer equipment and hardware 302,832 323,592 Leasehold and building improvements 49,703 46,164 Office furniture 10,784 9,789 Vehicles 4,930 3,480 Fixed assets, gross 762,187 751,783 Accumulated depreciation (253,495 ) (248,152 ) $ 508,692 $ 503,631 For the years ended December 31, 2016, 2015 and 2014, depreciation expenses for fixed assets were $73.4 million, $77.4 million and $78.4 million, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2016 | |
Intangible Assets, Net [Abstract] | |
Intangible Assets, Net | 12. Intangible Assets, Net The following table summarizes the Sohu Group’s intangible assets, net, as of December 31, 2015 and 2016 (in thousands): As of December 31, 2015 Items Gross Accumulated Impairment Net Purchased video content $ 226,832 $ (201,405 ) $ (11,129 ) $ 14,298 Domain names and trademarks 35,003 (9,458 ) (11,747 ) 13,798 Operating rights for licensed games 26,869 (9,517 ) (9,474 ) 7,878 Developed technologies 19,352 (3,393 ) (12,334 ) 3,625 Computer software 15,934 (11,173 ) 0 4,761 Cinema advertising slot rights 12,615 (8,721 ) 0 3,894 Others 27,760 (11,174 ) (9,425 ) 7,161 Total $ 364,365 $ (254,841 ) $ (54,109 ) $ 55,415 As of December 31, 2016 Items Gross Accumulated Impairment Net Purchased video content $ 181,100 $ (159,549 ) $ (12,759 ) $ 8,792 Operating rights for licensed games 30,497 (13,178 ) (9,208 ) 8,111 Domain names and trademarks 29,466 (9,872 ) (9,758 ) 9,836 Computer software 16,521 (13,015 ) 0 3,506 Developed technologies 8,818 (1,252 ) (7,369 ) 197 Cinema advertising slot rights 3,199 (2,625 ) 0 574 Others 11,568 (4,398 ) (6,055 ) 1,115 Total $ 281,169 $ (203,889 ) $ (45,149 ) $ 32,131 Impairment Losses In 2016, the Group recognized $22.9 million in losses for impairment related to Sohu Video’s purchased video content and Changyou purchased content and license rights to games. Impairment losses recognized consisted primarily of impairment losses incurred by Sohu of $18.6 million, including $2.9 million for intangible assets and $15.7 million for prepaid and other current assets, mainly due to the restructuring of the sales team of Sohu Video, which had an adverse impact on Sohu Video’s performance for 2016 and resulted in a lowering of management’s expectations of the programming usefulness of certain Sohu Video’s purchased video content. In 2015, the Group recognized $19.9 million in losses for impairment of intangible assets, primarily related to the Dolphin Browser operated by MoboTap and related license rights. In 2015, the financial performance of the Dolphin Browser was below original expectations, and Changyou’s management concluded that the Dolphin Browser was unable to provide expected synergies with Changyou’s platform channel business and accordingly performed a goodwill impairment test for the goodwill generated in the acquisition of MoboTap, and recognized an $8.9 million impairment loss for intangible assets. The impairment loss is recognized in the consolidated statements of comprehensive income under “goodwill impairment and impairment of intangibles as part of acquisition of a business.” The impaired intangible assets primarily consist of user base, technology, trademark and license rights. In 2014, the Group recognized a $20.2 million impairment loss related to Changyou’s intangible assets. The impairment loss for intangible assets was mainly from developed technologies and domain names, including a $15.3 million impairment loss related to RaidCall. The impairment loss was recognized in the consolidated statements of comprehensive income as “goodwill impairment and impairment of intangible assets acquired as part of business acquisitions.” Amortization In 2016, 2015 and 2014, amortization of intangible assets was $131.2 million, $161.1 million and $77.7 million, respectively. As of December 31, 2016, amortization expenses for future periods are estimated to be as follows: For the year ending December 31, (in thousands) 2017 $ 11,593 2018 9,355 2019 2,633 2020 1,300 2021 1,217 Thereafter 6,033 Total expected amortization expense $ 32,131 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill [Abstract] | |
Goodwill | 13. Goodwill Changes in the carrying value of goodwill by segment are as follows (in thousands): Sohu Sogou Changyou Total Balance as of December 31, 2014 Goodwill $ 73,908 $ 6,309 $ 297,999 $ 378,216 Accumulated impairment losses (35,788 ) 0 (39,002 ) (74,790 ) $ 38,120 $ 6,309 $ 258,997 $ 303,426 Transactions in 2015 Goodwill associated with the acquisition of 7Road de-recognized 0 0 (109,735 ) (109,735 ) Impairment loss related to MoboTap 0 0 (29,569 ) (29,569 ) Goodwill associated with the acquisition of Doyo, transferred to assets held for sale and impaired 0 0 (7,352 ) (7,352 ) Foreign currency translation adjustment (928 ) (364 ) (1,259 ) (2,551 ) Balance as of December 31, 2015 $ 37,192 $ 5,945 $ 111,082 $ 154,219 Balance as of December 31, 2015 Goodwill 72,980 5,945 181,529 260,454 Accumulated impairment losses (35,788 ) 0 (70,447 ) (106,235 ) $ 37,192 $ 5,945 $ 111,082 $ 154,219 Transactions in 2016 Goodwill associated with MoboTap and transferred to assets held for sale 0 0 (83,470 ) (83,470 ) Foreign currency translation adjustment (969 ) (380 ) (1,110 ) (2,459 ) Balance as of December 31, 2016 $ 36,223 $ 5,565 $ 26,502 $ 68,290 Balance as of December 31, 2016 Goodwill 72,011 5,565 96,949 174,525 Accumulated impairment losses (35,788 ) 0 (70,447 ) (106,235 ) $ 36,223 $ 5,565 $ 26,502 $ 68,290 In 2016, there were two separate reporting units under the Sohu segment, consisting of brand advertising and others. There was only one reporting unit under the Sogou segment. There were five main reporting units under the Changyou segment, consisting of the Changyou online game business, the 17173.com Website, RaidCall, MoboTap and the cinema advertising business. The Sohu Group tested goodwill for impairment at the reporting unit level on October 1, 2016. The Group performed impairment tests using the qualitative and quantitative methods. For the Sohu segment and the Sogou segment, impairment tests were conducted by quantitatively comparing the fair values of those reporting units to their carrying amounts. Sohu and Sogou estimated the fair values by weighting the results from the income approach. The valuation approach considers a number of factors that include expected future cash flows, growth rates, and discount rates, and requires Sohu and Sogou to make certain assumptions and estimates regarding industry economic factors and future profitability of the business. After the quantitative assessment, management concluded that the fair values of the reporting units exceeded their carrying values, indicating that the goodwill of those reporting units was not impaired. For the Changyou segment, Changyou performed the first step of a two-step quantitative goodwill impairment test by comparing the fair value of these reporting units to their carrying amounts, and the fair value of these reporting units exceeded their carrying values, indicating that the goodwill of those reporting units was not impaired as of December 31, 2016. For the two-step goodwill impairment test, Changyou estimated the fair values using the income approach, and considered factors that included expected future cash flows, growth rates and discount rates, or using the market approach and considered factors that included share price, control premium and comparable companies’ multipliers. In 2016, Changyou’s Board of Directors approved the disposal of the 51% equity interest in MoboTap held by Changyou. As of December 31, 2016, Changyou has been negotiating with a potential buyer on the terms of disposal. Accordingly, the assets and liabilities of MoboTap were recognized as “assets held for sale” and “liabilities held for sale,” respectively. As of December 31, 2016, goodwill in the amount of $83.5 million was reclassified from goodwill to “assets held for sale.” See Note-10-Assets and Liabilities Held for Sale. In 2015, Changyou recognized a $29.6 million goodwill impairment loss related to MoboTap, as Changyou’s management concluded that the Dolphin Browser was unable to provide expected synergies with Changyou’s platform business. Changyou also recognized a $1.9 million goodwill impairment loss with respect to Beijing Doyo Internet Technology Co., Ltd. (“Doyo”) as the total consideration received by Changyou for the sale of Doyo under an agreement entered into in September 2015 was lower than the carrying value of Doyo’s net assets. Doyo was disposed of at the end of 2015. In 2014, Changyou recognized a $33.8 million goodwill impairment loss related to RaidCall, as Changyou’s management concluded that RaidCall was unable to provide expected synergies with Changyou’s online games business. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2016 | |
Taxation [Abstract] | |
Taxation | 14. Taxation Income Tax Expense and Effective Tax Rate Income Tax Expense Sohu.com Inc. is subject to United States (“U.S.”) income tax, and Changyou’s income that is from a U.S. source is generally subject to U.S. income tax. The majority of the subsidiaries and VIEs of the Sohu Group are based in mainland China and are subject to income taxes in the PRC. These China-based subsidiaries and VIEs conduct substantially all of the Sohu Group’s operations, and generate most of the Sohu Group’s income or losses. The components of income before income taxes are as follows (in thousands): Year ended December 31, 2014 2015 2016 Income /(loss) before income tax expense Income /(loss) from China operations $ (129,349 ) $ 171,636 $ (88,440 ) Income /(loss) from non-China (35,820 ) 14,155 (5,461 ) Total income /(loss) before income tax expense $ (165,169 ) $ 185,791 $ (93,901 ) Income tax expense applicable to China operations Current tax $ 23,295 $ 55,532 $ 13,635 Deferred tax (20,637 ) 8,735 8,500 Subtotal income tax expense applicable to China operations 2,658 64,267 22,135 Non China income tax expense/(benefit) 1,864 11,291 (2,134 ) Non China withholding tax expense 1,528 1,378 1,071 Total income tax expense $ 6,050 $ 76,936 $ 21,072 In 2016, of the $21.1 million income tax expense, $22.1 million was for PRC tax, mainly attributable to Changyou’s business and negative $2.1 million was for U.S. tax, representing the combined results of income tax expense for U.S. taxable income of 2016 and Sohu’s reversal of $5.0 million for the disposal of an equity investment that occurred in 2015 and was determined in 2016 to be nontaxable. The combined effects of the income tax exemption and reduction available to the Group are as follows (in thousands, except per share data): Year Ended December 31, 2014 2015 2016 Tax holiday effect $ 186 $ 19,626 $ 30,872 Basic net income per share effect — 0.51 0.80 Effective Tax Rate The following is reconciliation between the U.S. federal statutory rate and the Group’s effective tax rate: Year Ended December 31, 2014 2015 2016 U.S. federal statutory rate: 35 % 35 % 35 % Effect of tax holidays applicable to the subsidiaries and the consolidated VIEs* 0 % (11 %) 33 % Tax differential from statutory rate applicable to the subsidiaries and the consolidated VIEs (31 %) (13 %) (3 %) Effect of withholding taxes (3 %) 2 % (4 %) Changes in valuation allowance for deferred tax assets (22 %) 31 % (91 %) Others 17 % (3 %) 8 % (4 %) 41 % (22 %) * The reversal of income tax for the preferential income tax that Changyou’s and Sogou’s subsidiaries received as KNSE or Software Enterprise for 2015 was included in the “Effect of tax holidays applicable to the subsidiaries and the consolidated VIEs” in the above table. PRC Corporate Income Tax Principal Entities Qualified as HNTEs The CIT Law applies an income tax rate of 25% to all enterprises but grants preferential tax treatment to High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs can enjoy an income tax rate of 15%, but need to re-apply As of December 31, 2016, the following principal entities of the Sohu Group were qualified as HNTEs and were entitled to an income tax rate of 15%. For Sohu’s Business • Beijing Sohu New Momentum Information Technology Co., Ltd. (“Sohu New Momentum”). Sohu New Momentum qualified as an HNTE for the years 2016 to 2018, and will need to re-apply • Beijing Sohu Internet Information Service Co., Ltd. (“Sohu Internet”). Sohu Internet qualified as an HNTE for the years 2015 to 2017, and will need to re-apply • Beijing Sohu New Era Information Technology Co., Ltd. (“Sohu Era”), Sohu Media and Guangzhou Qianjun Network Technology Co., Ltd (“Guangzhou Qianjun”). Sohu Era, Sohu Media and Guangzhou Qianjun are each qualified as HNTEs for the years 2014 to 2016, and will need to re-apply For Sogou’s Business • Beijing Sogou Information Service Co., Ltd. (“Sogou Information”). Sogou Information qualified as an HNTE for the years 2015 to 2017, and will need to re-apply • Beijing Sogou Technology Development Co., Ltd. (“Sogou Technology”). Sogou Technology qualified as an HNTE for the years 2014 to 2016, and will need to re-apply • Beijing Sogou Network Technology Co., Ltd. (“Sogou Network”). Sogou Network qualified as an HNTE for the years 2016 to 2018, and will need to re-apply For Changyou’s Business • Beijing AmazGame Age Internet Technology Co., Ltd. (“AmazGame”) and Beijing Gamease Age Digital Technology Co., Ltd. (“Gamease”). AmazGame and Gamease are each qualified as HNTEs for the years 2014 to 2016, and will need to re-apply Principal Entities Qualified as Software Enterprises and KNSE The CIT Law and its implementing regulations provide that a “Software Enterprise” is entitled to an income tax exemption for two years beginning with its first profitable year and a 50% reduction to a rate of 12.5% for the subsequent three years. An entity that qualifies as a “Key National Software Enterprise” (a “KNSE”) is entitled to a further reduced preferential income tax rate of 10%. Enterprises wishing to enjoy the status of a Software Enterprise or KNSE must perform a self-assessment each year to ensure they meet the criteria for qualification and file required supporting documents with the tax authorities before using the preferential CIT rates. These enterprises will be subject to the tax authorities’ assessment each year as to whether they are entitled to use the relevant preferential CIT treatments. If at any time during the preferential tax treatment years an enterprise uses the preferential CIT rates but the relevant authorities determine that it fails to meet applicable criteria for qualification, the relevant authorities may revoke the enterprise’s Software Enterprise/KNSE status. For Sohu’s Business • Sohu New Momentum. In 2016, Sohu New Momentum was in the first of three years in which it is entitled to a 50% reduction to a rate of 12.5% as a Software Enterprise, but will need to apply during 2017 for qualification as a Software Enterprise for 2016. For Sogou’s business: • Sogou Technology. Sogou Technology performed the self-assessment and filed required supporting documents in 2016 for KNSE status for 2015. Sogou Technology was qualified as a KNSE after the relevant government authorities’ assessment and was entitled to a preferential income tax rate of 10% for 2015. As a result, a reversal of income tax of $3.8 million for the preferential income tax rate was recorded in the consolidated statements of comprehensive income for the year ended December 31, 2016. Same process will be followed in 2017 by Sogou Technology for its preferential income tax treatment as a KNSE for 2016. • Sogou Network. Sogou Network performed the self-assessment and filed required supporting documents in 2016 for Software Enterprise status for 2015. Sogou Network was qualified as a Software Enterprise after the relevant government authorities’ assessment and was entitled to a preferential income tax rate of 12.5% for 2015. For Changyou’s business: • AmazGame. AmazGame qualified as a KNSE and enjoyed a preferential income tax rate of 10% for each of 2013 and 2014. AmazGame performed the self-assessment and filed required supporting documents in 2016 for KNSE status for 2015. AmazGame was qualified as a KNSE after the relevant government authorities’ assessment and was entitled to a preferential income tax rate of 10% for 2015. As a result, a reversal of income tax of $10.6 million for the preferential income tax rate was recorded in the consolidated statements of comprehensive income for the year ended December 31, 2016. Same process will be followed in 2017 by AmazGame for its preferential income tax treatment as a KNSE for 2016. • Beijing Changyou Gamespace Software Technology Co., Ltd. (“Gamespace”). In 2016, Gamespace was in the third of three years in which it was entitled to a 50% reduction to a rate of 12.5% as a Software Enterprise. Gamespace will need to apply during 2017 for qualification as a Software Enterprise for 2016. • Baina (Wuhan) Information Technology Co., Ltd. (“Wuhan Baina Information”). In 2016, Wuhan Baina Information was in the first of two years in which it is entitled to income tax exemption as a Software Enterprise. Gamespace will need to re-apply PRC Withholding Tax on Dividends The CIT Law imposes a 10% withholding income tax on dividends distributed by foreign invested enterprises in the PRC to their immediate holding companies outside Mainland China. A lower withholding tax rate may be applied if there is a tax treaty between Mainland China and the jurisdiction of the foreign holding company. A holding company in Hong Kong, for example, will be subject to a 5% withholding tax rate under an arrangement between the PRC and the Hong Kong Special Administrative Region on the “Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital,” if such holding company is considered a non-PRC In order to fund the distribution of a dividend to shareholders of the Sohu Group’s majority-owned subsidiary Changyou, Changyou’s management determined to cause one of its PRC subsidiaries to declare and distribute a cash dividend of all of its stand-alone 2012 earnings and half of its stand-alone subsequent years’ earnings to its direct overseas parent company, Changyou.com (HK) Limited (“Changyou HK”). As of December 31, 2016, Changyou had accrued deferred tax liabilities in the amount of $26.0 million for PRC withholding tax. With the exception of that dividend, the Sohu Group does not intend to have any of its PRC subsidiaries distribute any undistributed profits of such subsidiaries to their direct overseas parent companies, but rather intends that such profits will be permanently reinvested by such subsidiaries for their PRC operations. PRC Value-Added Tax Effective September 1, 2012, a pilot program (the “Pilot Program”) for transition from the imposition of PRC business tax (“Business Tax”) to the imposition of value-added tax (“VAT”) was implemented for revenues from certain industries and certain cities. Prior to Pilot Program, the Group was mainly subject to a 5% PRC business tax and related surcharges on revenues in the PRC. PRC business tax and the related surcharges are recognized when the revenue is earned. On May 1, 2016, the transition from the imposition of PRC business tax (“Business Tax”) to the imposition of VAT was expanded to all industries in China, and as a result all of the Sohu Group’s revenues have been subject to VAT since that date. To record VAT payable, the Group adopted the net presentation method, which presents the difference between the output VAT (at a rate of 6%) and the available input VAT amount (at the rate applicable to the supplier). U.S. Corporate Income Tax Sohu.com Inc. is a Delaware corporation that is subject to U.S. corporate income tax on its taxable income at a rate of up to 35%. To the extent that portions of its U.S. taxable income, such as Subpart F income or a dividend, are determined to be from sources outside of the U.S., subject to certain limitations, Sohu.com Inc. may be able to claim foreign tax credits to offset its U.S. income tax liabilities. Any remaining liabilities are accrued in the Company’s consolidated statements of comprehensive income and estimated tax payments are made when required by U.S. law. In accordance with U.S. GAAP, Sohu.com Inc. does not provide for U.S. federal income taxes or tax benefits on the undistributed earnings or losses of its non-U.S. Cumulative undistributed earnings were included in consolidated retained earnings on the balance sheets in the amounts of $396.7 million and $614.1 million, respectively, as of December 31, 2016 and 2015. An estimated $138.8 million and $214.9 million in U.S. income and foreign withholding taxes would be due if these earnings were remitted as dividends, after payment of all deferred taxes as of December 31, 2016 and 2015. Deferred Tax Assets and Liabilities Significant components of the Group’s deferred tax assets and liabilities consist of the following (in thousands): As of December 31, 2015 2016 Deferred tax assets: Net operating loss from operations $ 145,964 $ 206,967 Accrued bonus and commissions 21,004 22,069 Intangible assets transfer 1,156 746 Others 2,321 7,525 Total deferred tax assets 170,445 237,307 Less: Valuation allowance (141,951 ) (216,176 ) Net deferred tax assets $ 28,494 $ 21,131 Deferred tax liabilities Withholding tax for Dividend $ (24,884 ) $ (26,002 ) Deferred U.S. tax (12,450 ) (9,175 ) Intangible assets from business acquisitions (1,465 ) (1,273 ) Others (3,616 ) (3,334 ) Total deferred tax liabilities $ (42,415 ) $ (39,784 ) The Group elected to early adopt the FASB issued Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes retrospectively from the fourth quarter of 2016. As a result of the adoption of this guidance, $4.7 million of current deferred tax assets and $24.9 million of current deferred tax liabilities were reclassified to non-current as of December 31, 2015. As of December 31, 2016, the Group had net operating losses from PRC entities of approximately $760.6 million available to offset against future net profit for income tax purposes. The Group anticipates that it is more likely than not that these net operating losses (except for the net operating losses generated by Changyou’s VIEs) may not be utilized based on its estimate of the operation performance of these PRC entities; therefore, $190.1 million in deferred tax assets generated from net operating losses were offset by a valuation allowance. In 2016, $11.8 million of PRC net operating losses generated from previous years expired. The remaining PRC net operating losses will expire successively commencing in 2017. Uncertain Tax Positions The Sohu Group did not have any significant unrecognized uncertain tax positions for the year ended December 31, 2016. The Group did not have any significant penalties or interest associated with tax positions for the year ended December 31, 2016. The following table summarizes the Group’s recognized uncertain tax positions from January 1, 2014 to December 31, 2016 (in thousands): As of December 31, 2014 2015 2016 Beginning balance $ 24,369 $ 24,515 $ 39,244 Decreases related to prior year tax positions 0 0 (6,649 ) Increases related to current year tax positions 146 14,729 87 Ending balance $ 24,515 $ 39,244 $ 32,682 In 2016, the decreases related to prior year tax positions mainly represented a payment of $5.3 million to PRC tax authorities for a portion of an uncertain tax position arising from certain equity transactions recognized in 2013. In 2015, the Sohu Group recognized tax payable in the amount of $14.6 million as management determined that certain business transactions that took place during the year may result in additional tax obligations under relevant tax rules. The Group does not anticipate that the uncertain tax positions will significantly increase or decrease within twelve months of December 31, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies Contractual Obligations The following table sets forth the Group’s contractual obligations as of December 31, 2016 (in thousands): As of December 31, 2017 2018 2019 2020 2021 Thereafter Total Purchase of content and services – video 112,051 39,203 81 0 0 0 151,335 Purchase of cinema advertisement slot rights 63,174 46,971 22,633 5,060 0 0 137,838 Purchase of bandwidth 61,731 3,500 1,171 1,055 308 0 67,765 Operating lease obligations(1) 14,543 10,004 2,751 586 58 10 27,952 Expenditures for operating rights for licensed games with technological feasibility 4,178 15,122 0 0 0 0 19,300 Purchase of content and services – others 7,943 166 73 30 0 0 8,212 Fees for operating rights for licensed games in development 1,271 348 0 0 0 0 1,619 Expenditures for titles in game development 259 1,197 0 0 0 0 1,456 Purchase of fixed assets 1,175 0 0 0 0 0 1,175 Others 4,005 4 0 0 0 0 4,009 Total Payments Required 270,330 116,515 26,709 6,731 366 10 420,661 Note (1): For the years ended December 31, 2016, 2015 and 2014, rental expense included in the operating lease was approximately $23.9 million, $27.9 million, and $34.6 million, respectively. Litigation The Sohu Group is a party to various litigation matters which it considers routine and incidental to its business. The Sohu Group records a liability when the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. The Sohu Group evaluates, on a regular basis, developments in litigation matters that could affect the amount of liability that has been previously accrued and makes adjustments as appropriate. Management believes that the total liabilities to the Sohu Group that may arise as a result of currently pending legal proceedings will not have a material adverse effect on the Group’s business, results of operations, financial condition and cash flows PRC Law and Regulations The Chinese market in which the Sohu Group operates poses certain macro-economic and regulatory risks and uncertainties. These uncertainties extend to the ability to operate an Internet business and to conduct brand advertising, search and search-related, online game, and other services in the PRC. Though the PRC has, since 1978, implemented a wide range of market-oriented economic reforms, continued reforms and progress towards a full market-oriented economy are uncertain. In addition, the telecommunication, information, and media industries remain highly regulated. Restrictions are currently in place and are unclear with respect to which segments of these industries foreign-owned entities, like the Sohu Group, may operate. The Chinese government may issue from time to time new laws or new interpretations of existing laws to regulate areas such as telecommunication, information and media. The Sohu Group’s legal structure and scope of operations in China could be subject to restrictions, which could result in limits on its ability to conduct business in the PRC. Certain risks related to PRC law that could affect the Sohu Group’s VIE structure are discussed in Note 16 – VIEs. Regulatory risks also encompass interpretation by PRC tax authorities of current tax law, including the applicability of certain preferential tax treatments. The Sohu Group’s sales, purchase and expense transactions are generally denominated in RMB and a significant portion of its assets and liabilities are denominated in RMB. The RMB is not freely convertible into foreign currencies. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions. Remittances in currencies other than RMB by its subsidiaries in China may require certain supporting documentation in order to effect the remittance. |
VIEs
VIEs | 12 Months Ended |
Dec. 31, 2016 | |
VIEs [Abstract] | |
VIEs | 16. VIEs Background PRC laws and regulations prohibit or restrict foreign ownership of companies that operate Internet information and content, Internet access, online games, mobile, value added telecommunications and certain other businesses in which the Sohu Group is engaged or could be deemed to be engaged. Consequently, the Sohu Group conducts certain of its operations and businesses in the PRC through its VIEs. The Sohu Group consolidates in its consolidated financial statements all of the VIEs of which the Group is the primary beneficiary. VIEs Consolidated within the Sohu Group The Sohu Group adopted the guidance of accounting for VIEs, which requires VIEs to be consolidated by the primary beneficiary of the entity. Management made evaluations of the relationships between the Sohu Group and its VIEs and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluation, management also took into account the fact that, as a result of contractual arrangements with its consolidated VIEs, the Sohu Group controls the shareholders’ voting interests in those VIEs. As a result of such evaluation, the management concluded that the Sohu Group is the primary beneficiary of the VIEs which the Group consolidates. All of the consolidated VIEs are incorporated and operated in the PRC, and the Group’s principal VIEs are directly or indirectly owned by Dr. Charles Zhang, the Sohu Group’s Chairman and Chief Executive Officer, or other executive officers and employees of the Sohu Group identified below. Capital for the consolidated VIEs was funded by the Sohu Group through loans provided to Dr. Charles Zhang and other executive officers and employees, and was initially recorded as loans to related parties. These loans are eliminated for accounting purposes against the capital of the VIEs upon consolidation. Under contractual agreements with the Sohu Group, Dr. Charles Zhang and those other executive officers and employees of the Sohu Group who are shareholders of the consolidated VIEs are required to transfer their ownership in these entities to the Group, if permitted by PRC laws and regulations, or, if not so permitted, to designees of the Group at any time as requested by the Group to repay the loans outstanding. All voting rights of the consolidated VIEs are assigned to the Sohu Group, and the Group has the right to designate all directors and senior management personnel of the consolidated VIEs, and also has the obligation to absorb losses of the consolidated VIEs. Dr. Charles Zhang and those other executive officers and employees of the Sohu Group who are shareholders of the consolidated VIEs have pledged their shares in the consolidated VIEs as collateral for the loans. As of December 31, 2016, the aggregate amount of these loans was $9.4 million. Under its contractual arrangements with the consolidated VIEs, the Sohu Group has the power to direct activities of the VIEs, and can have assets transferred freely out of the VIEs without any restrictions. Therefore, the Group considers that there is no asset of a consolidated VIE that can be used only to settle obligations of the VIEs, except for registered capital and PRC statutory reserves of the VIEs. As of December 31, 2016, the registered capital and PRC statutory reserves of the consolidated VIEs totaled $60.0 million. As all of the consolidated VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the consolidated VIEs do not have recourse to the general credit of the Sohu Group for any of the liabilities of the consolidated VIEs. Currently there is no contractual arrangement that could require the Sohu Group to provide additional financial support to the consolidated VIEs. As the Sohu Group is conducting certain business in the PRC mainly through the consolidated VIEs, the Group may provide such support on a discretionary basis in the future, which could expose the Group to a loss. The Sohu Group classified the consolidated VIEs within the Sohu Group as principal VIEs or immaterial VIEs based on certain criteria, such as the VIEs’ total assets or revenues. The following is a summary of the principal VIEs within the Sohu Group: Basic Information for Principal VIEs and Subsidiaries of Principal VIEs For Sohu’s Business • High Century Beijing Century High Tech Investment Co., Ltd. (“High Century”) was incorporated in 2001. As of December 31, 2016, the registered capital of High Century was $4.6 million and Dr. Charles Zhang and Wei Li held 80% and 20% interests, respectively, in this entity. • Heng Da Yi Tong Beijing Heng Da Yi Tong Information Technology Co., Ltd. (“Heng Da Yi Tong”) was incorporated in 2002. As of December 31, 2016, the registered capital of Heng Da Yi Tong was $1.2 million and Dr. Charles Zhang and Wei Li held 80% and 20% interests, respectively, in this entity. • Sohu Internet Sohu Internet was incorporated in 2003. As of December 31, 2016, the registered capital of Sohu Internet was $1.6 million and High Century held a 100% interest in this entity. • Donglin Beijing Sohu Donglin Advertising Co., Ltd. (“Donglin”) was incorporated in 2010. As of December 31, 2016, the registered capital of Donglin was $1.5 million and Sohu Internet held a 100% interest in this entity. • Tianjin Jinhu Tianjin Jinhu Culture Development Co., Ltd. (“Tianjin Jinhu”) was incorporated in 2011. In October, 2016, Ye Deng transferred its 50% equity interest in Tianjin Jinhu to Xiufeng Deng. As of December 31, 2016, the registered capital of Tianjin Jinhu was $0.5 million and Xiufeng Deng and Xuemei Zhang each held a 50% interest in this entity. • Guangzhou Qianjun Guangzhou Qianjun was acquired in November 2014. As of December 31, 2016, the registered capital of Guangzhou Qianjun was $3.3 million and Tianjin Jinhu held a 100% interest in this entity. • Focus Interactive Beijing Focus Interactive Information Service Co., Ltd. (“Focus Interactive”) was incorporated in July 2014. As of December 31, 2016, the registered capital of Focus Interactive was $1.6 million and Heng Da Yi Tong held 100% of the equity interests in this entity. For Sogou’s Business • Sogou Information Sogou Information was incorporated in 2005. As of December 31, 2016, the registered capital of Sogou Information was $2.5 million and Xiaochuan Wang, Sogou’s Chief Executive Officer, High Century and Tencent held 10%, 45% and 45% interests, respectively, in this entity. For Changyou’s Business • Gamease Gamease was incorporated in 2007. As of December 31, 2016, the registered capital of Gamease was $1.3 million and High Century held a 100% interest in this entity. • Guanyou Gamespace Beijing Guanyou Gamespace Digital Technology Co., Ltd. (“Guanyou Gamespace”) was incorporated in 2010. As of December 31, 2016, the registered capital of Guanyou Gamespace was $1.5 million and Beijing Changyou Star Digital Technology Co., Ltd (“Changyou Star”) held a 100% interest in this entity. • Shanghai ICE Shanghai ICE Information Technology Co., Ltd. (“Shanghai ICE”) was acquired by Changyou in 2010. As of December 31, 2016, the registered capital of Shanghai ICE was $1.2 million and Gamease held a 100% interest in this entity. • Wuhan Baina Information Baina (Wuhan) Information Technology Co., Ltd. (“Wuhan Baina Information”) was acquired by Gamease in July 2014. As of December 31, 2016, the registered capital of Wuhan Baina Information was $3.0 million and Changyou Star and Yongzhi Yang, the former chief executive officer of MoboTap, held 60% and 40% interests, respectively, in this entity. Financial Information The following financial information of the Sohu Group’s consolidated VIEs (including subsidiaries of VIEs) is included in the accompanying consolidated financial statements (in thousands): As of December 31, 2015 2016 ASSETS: Cash and cash equivalents $ 131,270 $ 94,859 Accounts receivable, net 135,925 72,151 Prepaid and other current assets 101,951 86,722 Assets held for sale 0 12,551 Intercompany receivables due from the Company’s subsidiaries 140,396 197,438 Total current assets 509,542 463,721 Long-term investments, net 15,960 17,472 Fixed assets, net 7,362 4,372 Intangible assets, net 18,266 14,545 Goodwill 36,351 35,161 Other non-current 12,057 4,052 Total assets $ 599,538 $ 539,323 LIABILITIES: Accounts payable $ 23,757 $ 15,824 Accrued liabilities 79,012 96,695 Receipts in advance and deferred revenue 55,319 44,797 Liabilities held for sale 0 3,232 Other current liabilities 139,577 111,775 Intercompany payables due to the Company’s subsidiaries 175,178 129,431 Total current liabilities 472,843 401,754 Long-term accounts payable 2,858 0 Long-term taxes payable 180 13,463 Deferred tax liabilities 1,490 1,273 Intercompany payables due to the Company’s subsidiaries 21,717 19,620 Total liabilities $ 499,088 $ 436,110 As of December 31, 2014 2015 2016 Net revenue $ 1,063,655 $ 1,181,354 $ 894,697 Net income /(loss) $ (90,840 ) $ (78,722 ) $ 9,557 Year ended December 31, 2014 2015 2016 Net cash provided by /(used in) operating activities $ 69,171 $ 38,628 $ (17,804 ) Net cash provided by /(used in) investing activities (159,094 ) 55,108 (2,273 ) Net cash provided by financing activities $ 17,742 $ 2,855 $ 0 Summary of Significant Agreements Currently in Effect Agreements Between Subsidiaries, Consolidated VIEs and Nominee Shareholders Loan and share pledge agreement Loan and share pledge agreement Loan and share pledge agreements free-and VIE-related VIE-related VIE-related Exclusive equity interest purchase right agreements Business operation agreement Powers of Attorney Loan agreements and equity pledge agreements Equity interest purchase right agreements Business operation agreement Powers of Attorney Loan agreements and equity pledge agreements VIE-related VIE-related VIE-related Equity interest purchase right agreements Powers of attorney Business operation agreements Share pledge agreement VIE-related VIE-related VIE-related Call option agreement Business Operation Agreement Business Arrangements Between Subsidiaries and Consolidated VIEs Exclusive technology consulting and service agreement Business cooperation agreement Exclusive technology consulting and service agreement Exclusive technology consulting and service agreement Technology support and utilization agreements Services and maintenance agreements Exclusive Services agreement Certain of the contractual arrangements described above between the VIEs and the related wholly-owned subsidiaries of the Sohu Group are silent regarding renewals. However, because the VIEs are controlled by the Sohu Group through powers of attorney granted to the Sohu Group by the shareholders of the VIEs, the contractual arrangements can be, and are expected to be, renewed at the subsidiaries’ election. VIE-Related It is possible that the Sohu Group’s operation of certain of its operations and businesses through VIEs could be found by PRC authorities to be in violation of PRC law and regulations prohibiting or restricting foreign ownership of companies that engage in such operations and businesses. While the Sohu Group’s management considers the possibility of such a finding by PRC regulatory authorities under current law and regulations to be remote, on January 19, 2015, the Ministry of Commerce of the PRC, or (the “MOFCOM”) released on its Website for public comment a proposed PRC law (the “Draft FIE Law”) that appears to include VIEs within the scope of entities that could be considered to be foreign invested enterprises (or “FIEs”) that would be subject to restrictions under existing PRC law on foreign investment in certain categories of industry. Specifically, the Draft FIE Law introduces the concept of “actual control” for determining whether an entity is considered to be an FIE. In addition to control through direct or indirect ownership or equity, the Draft FIE Law includes control through contractual arrangements within the definition of “actual control.” If the Draft FIE Law is passed by the People’s Congress of the PRC and goes into effect in its current form, these provisions regarding control through contractual arrangements could be construed to reach the Sohu Group’s VIE arrangements, and as a result the Sohu Group’s VIEs could become explicitly subject to the current restrictions on foreign investment in certain categories of industry. The Draft FIE Law includes provisions that would exempt from the definition of foreign invested enterprises entities where the ultimate controlling shareholders are either entities organized under PRC law or individuals who are PRC citizens. The Draft FIE Law is silent as to what type of enforcement action might be taken against existing VIEs that operate in restricted or prohibited industries and are not controlled by entities organized under PRC law or individuals who are PRC citizens. If a finding were made by PRC authorities, under existing law and regulations or under the Draft FIE Law if it becomes effective, that the Sohu Group’s operation of certain of its operations and businesses through VIEs is prohibited, regulatory authorities with jurisdiction over the licensing and operation of such operations and businesses would have broad discretion in dealing with such a violation, including levying fines, confiscating the Sohu Group’s income, revoking the business or operating licenses of the affected businesses, requiring the Sohu Group to restructure its ownership structure or operations, or requiring the Sohu Group to discontinue all or any portion of its operations. Any of these actions could cause significant disruption to the Sohu Group’s business operations, and have a severe adverse impact on the Sohu Group’s cash flows, financial position and operating performance. In addition, it is possible that the contracts among the Sohu Group, the Sohu Group’s VIEs and shareholders of its VIEs would not be enforceable in China if PRC government authorities or courts were to find that such contracts contravene PRC law and regulations or are otherwise not enforceable for public policy reasons. In the event that the Sohu Group was unable to enforce these contractual arrangements, the Sohu Group would not be able to exert effective control over the affected VIEs. Consequently, such VIE’s results of operations, assets and liabilities would not be included in the Sohu Group’s consolidated financial statements. If such were the case, the Sohu Group’s cash flows, financial position and operating performance would be severely adversely affected. The Sohu Group’s contractual arrangements with respect to its consolidated VIEs are in place. The Sohu Group’s management believes that such contracts are enforceable, and considers the possibility remote that PRC regulatory authorities with jurisdiction over the Sohu Group’s operations and contractual relationships would find the contracts to be unenforceable. The Sohu Group’s operations and businesses rely on the operations and businesses of its VIEs, which hold certain recognized and unrecognized revenue-producing assets. The recognized revenue-producing assets include goodwill and intangible assets acquired through business acquisitions. Goodwill primarily represents the expected synergies from combining an acquired business with the Sohu Group. Intangible assets acquired through business acquisitions mainly consist of customer relationships, non-compete |
Sohu.com Inc. Shareholders' Equ
Sohu.com Inc. Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Sohu.com Inc. Shareholders' Equity [Abstract] | |
Sohu.com Inc. Shareholders' Equity | 17. Sohu.com Inc. Shareholders’ Equity Summary of Sohu.com Inc.’s outstanding shares (in thousands): Number of Outstanding Shares As of December 31, 2014 2015 2016 Common stock: Balance, beginning of year 38,326 38,507 38,653 Issuance of common stock 181 146 89 Balance, end of year 38,507 38,653 38,742 Takeover Defense Sohu intends to adopt appropriate defensive measures in the future on a case by case basis as and to the extent that Sohu’s Board of Directors determines that such measures are necessary or advisable to protect Sohu stockholder value in the face of any coercive takeover threats or to prevent an acquirer from gaining control of Sohu without offering fair and adequate price and terms. Treasury Stock Treasury stock consists of shares repurchased by Sohu.com Inc. that are no longer outstanding and are held by Sohu.com Inc. Treasury stock is accounted for under the cost method. For the years ended December 31, 2016, 2015 and 2014, the Company did not repurchase any shares of its common stock. Stock Incentive Plans Sohu (excluding Sohu Video), Sogou, Changyou, and Sohu Video have incentive plans for the granting of share-based awards, including options and restricted share units, to their directors, management and other key employees. 1) Sohu.com Inc. Share-based Awards Sohu’s 2000 Stock Incentive Plan Sohu’s 2000 Stock Incentive Plan (the “Sohu 2000 Stock Incentive Plan”) provided for the issuance of up to 9,500,000 shares of common stock, including those issued pursuant to the exercise of stock options and upon vesting and settlement of restricted share units. Most of these awards vest over a period of four years. The maximum term of any issued stock right under the Sohu 2000 Stock Incentive Plan is ten years from the grant date. The Sohu 2000 Stock Incentive Plan expired on January 24, 2010. A new plan (the “Sohu 2010 Stock Incentive Plan”) was adopted by Sohu’s shareholders on July 2, 2010. There has been no share-based compensation expense recognized under the Sohu 2000 Stock Incentive Plan since 2015, as the requisite service periods for all these awards had been completed by the end of 2014. No cash has been received under the Sohu 2000 Stock Incentive Plan since 2016, as all of these awards had been exercised by the end of 2015. Sohu’s 2010 Stock Incentive Plan On July 2, 2010, the Company’s shareholders adopted the Sohu 2010 Stock Incentive Plan, which provides for the issuance of up to 1,500,000 shares of common stock, including stock issued pursuant to the vesting and settlement of restricted stock units and pursuant to the exercise of stock options. The maximum term of any stock right granted under the Sohu 2010 Stock Incentive Plan is ten years from the grant date. The Sohu 2010 Stock Incentive Plan will expire on July 1, 2020. As of December 31, 2016, 560,430 shares were available for grant under the Sohu 2010 Stock Incentive Plan. i) Summary of stock option activity On February 7, 2015 and May 1, 2016, the Company’s Board of Directors approved contractual grants to members of the Company’s management and key employees of options for the purchase of an aggregate of 1,068,000 and 13,000 shares of common stock, respectively, with nominal exercise prices of $0.001. These stock options vest and become exercisable in four equal installments over a period of four years, with each installment vesting upon the satisfaction of a service period requirement and certain subjective performance targets. These stock options are substantially similar to restricted stock units except for the nominal exercise price, which would be zero for restricted stock units. Under ASC 718-10-25 ASC 718-10-55 re-measured On February 7, 2016, 253,250 of these stock options were granted and became vested, as a mutual understanding of the subjective performance targets was reached between the Company and the recipients, the targets had been satisfied, and the service period requirements had been fulfilled. The cumulative share-based compensation expense for these granted stock options has been adjusted and fixed based on the fair value at the grant date of $10.8 million. A summary of stock option activity under the Sohu 2010 Stock Incentive Plan as of and for the year ended December 31, 2016 is presented below: Options Number Of Shares Weighted Weighted Aggregate Outstanding at January 1, 2016 0 $ $ Granted 253 0.001 Exercised (60 ) 0.001 Forfeited or expired 0 Outstanding at December 31, 2016 193 0.001 8.10 6,549 Vested at December 31, 2016 193 0.001 8.10 6,549 Exercisable at December 31, 2016 193 0.001 8.10 6,549 Note (1): The aggregated intrinsic value in the preceding table represents the difference between Sohu’s closing stock price of $33.89 on December 31, 2016 and the nominal exercise prices of the stock options. For the year ended December 31, 2016 and 2015, total share-based compensation expense recognized for these stock options was $1.4 million and $25.6 million, respectively. ii) Summary of restricted stock unit activity A summary of restricted stock unit activity under the Sohu 2010 Stock Incentive Plan as of and for the year ended December 31, 2016 is presented below: Restricted Share Units Number of Weighted-Average Unvested at January 1, 2016 32 $ 70.24 Granted 11 51.00 Vested (23 ) 62.11 Forfeited (9 ) 63.45 Unvested at December 31, 2016 11 73.32 Expected to vest after December 31, 2016 8 73.32 For the years ended December 31, 2016, 2015 and 2014, total share-based compensation expense recognized for restricted stock units was $1.3 million, $2.2 million and $3.0 million, respectively. As of December 31, 2016, there was $0.3 million of unrecognized compensation expense related to unvested restricted stock units. The expense is expected to be recognized over a weighted average period of 0.61 years. The total fair value on their respective vesting dates of restricted stock units vested during the years ended December 31, 2016, 2015 and 2014 was $0.9 million, $1.6 million and $1.2 million, respectively. 2) Sogou Inc. Share-based Awards Sogou 2010 Share Incentive Plan Sogou adopted a share incentive plan on October 20, 2010. The number of Sogou ordinary shares issuable under the plan was 41,500,000 after an amendment that was effective August 22, 2014 (as amended, the “Sogou 2010 Share Incentive Plan”). Awards of share rights may be granted under the Sogou 2010 Share Incentive Plan to management and employees of Sogou and of any present or future parents or subsidiaries or VIEs of Sogou. The maximum term of any share right granted under the Sogou 2010 Share Incentive Plan is ten years from the grant date. The Sogou 2010 Share Incentive Plan will expire on October 19, 2020. As of December 31, 2016, Sogou had contractually granted options for the purchase of 38,209,700 Sogou ordinary shares under the 2010 Sogou Share Incentive Plan. Of the contractually-granted Sogou share options for the purchase of 38,209,700 Sogou ordinary shares, options for the purchase of 31,009,700 Sogou ordinary shares vest and become exercisable upon a service period requirement being met, as well as Sogou’s achievement of performance targets for the corresponding period. Subject to achievement of the applicable performance targets, of these Sogou share options for the purchase of 31,009,700 Sogou ordinary shares, options for the purchase of 29,822,750 Sogou ordinary shares vest and become exercisable in four equal installments and options for the purchase of 1,186,950 Sogou ordinary shares vest and become exercisable in two to four installments over varying periods. Of these Sogou share options for the purchase of 31,009,700 Sogou ordinary shares, the terms of options for the purchase of 900,000 Sogou ordinary shares, which had previously included as vesting conditions a service period requirement and Sogou’s completion of an IPO of its ordinary shares (“Sogou’s IPO”), were amended in the first quarter of 2016 to remove as a condition of vesting the completion of Sogou’s IPO and add as a condition of vesting achievement of performance targets. For purposes of recognition of share-based compensation expense, each installment is considered to be granted as of the date that the performance target has been set. As of December 31, 2016, Sogou had granted options for the purchase of 25,245,808 Sogou ordinary shares under the 2010 Sogou Share Incentive Plan. As of December 31, 2016, options for the purchase of 24,894,886 Sogou ordinary shares had become vested and exercisable because both the service period and the performance requirements had been met, and of such vested options, options for the purchase of 22,994,909 Sogou ordinary shares had been exercised. Of the contractually granted Sogou share options, options for the purchase of 7,200,000 Sogou ordinary shares vest and become exercisable in five equal installments, with (i) the first installment vesting upon Sogou’s IPO and the expiration of all underwriters’ lockup periods applicable to Sogou’s IPO, and (ii) each of the four subsequent installments vesting on the first, second, third and fourth anniversary dates, respectively, of the closing of Sogou’s IPO. The completion of an IPO is considered to be a performance condition of the awards. An IPO is not considered to be probable until it is completed. Under ASC 718 As of December 31, 2016, for purposes of recognition of share-based compensation expense, Sogou had granted Sogou share options for the purchase of 32,445,808 Sogou ordinary shares, of which options for the purchase of 9,450,899 Sogou ordinary shares were outstanding. A summary of Sogou share option activity under the Sogou 2010 Share Incentive Plan as of and for the year ended December 31, 2016 is presented below: Options Number Of Shares Weighted Weighted Outstanding at January 1, 2016 12,209 $ 0.369 Granted 2,337 0.001 Exercised (3,876 ) 0.001 Forfeited or expired (1,219 ) 0.001 Outstanding at December 31, 2016 9,451 0.476 6.31 Vested at December 31, 2016 and expected to vest thereafter 2,251 Exercisable at December 31, 2016 1,900 For the years ended December 31, 2016, 2015 and 2014, total share-based compensation expense recognized for Sogou share options under the Sogou 2010 Share Incentive Plan was $7.6 million, $7.3 million and $31.4 million, respectively. As of December 31, 2016, there was $0.8 million of unrecognized compensation expense related to the unvested Sogou share options. The expense is expected to be recognized over a weighted average period of 0.57 years. The fair value of the ordinary shares of Sogou was assessed using the income approach /discounted cash flow method, with a discount for lack of marketability, given that the shares underlying the awards were not publicly traded at the time of grant, and was determined with the assistance of a qualified professional appraiser using management’s estimates and assumptions. This assessment required complex and subjective judgments regarding Sogou’s projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants were made. The fair value of the Sogou share options granted to Sogou management and key employees was estimated on the date of grant using the Binomial option – pricing model (the “BP Model”) with the following assumptions used: Assumptions Adopted 2014 2015 2016 Average risk-free interest rate 2.62%~3.05% 2.48%~2.77% 1.90%~2.77% Exercise multiple 2~3 2~3 2~3 Expected forfeiture rate (post-vesting) 0%~12% 1%~12% 0%~12% Weighted average expected option life 7 8 7 Volatility rate 49%~54% 47%~51% 43%~50% Dividend yield 0% 0% 0% Fair value 5.85~6.35 3.58 3.18~3.93 Sogou estimated the risk-free rate based on the market yields of U.S. Treasury securities with an estimated country-risk differential as of the valuation date. An exercise multiple was estimated as the ratio of the fair value of the Sogou ordinary shares over the exercise price as of the time the Sogou share option is exercised, based on consideration of research studies regarding exercise patterns based on historical statistical data. In Sogou’s valuation analysis, a multiple of two was applied for employees and a multiple of three was applied for management. Sogou estimated the forfeiture rate to be 0% or 1% for the Sogou share options granted to Sogou management as of December 31, 2016 and 12% for the Sogou share options granted to Sogou employees as of December 31, 2016. The life of the Sogou share options is the contract life of the option. Based on the option agreement, the contract life of the Sogou share options is 10 years. As there is no trading market for Sogou’s ordinary shares, the expected volatility at the valuation date was estimated based on the historical volatility of comparable companies for the period before the grant date with length commensurate with the expected term of the Sogou share options. Sogou has no history or expectation of paying dividends on its ordinary shares. Accordingly, the dividend yield was estimated to be 0%. Sohu Management Sogou Share Option Arrangement Under an arrangement providing for Sogou share-based awards to be available for grants to members of Sohu’s Board of Directors, management and other key employees (“Sohu Management Sogou Share Option Arrangement”), which was approved by the boards of directors of Sohu and Sogou in March 2011, Sohu has the right to provide to members of Sohu’s Board of Directors, management and other key employees the opportunity to purchase from Sohu up to 12,000,000 ordinary shares of Sogou at a fixed exercise price of $0.625 or $0.001 per share. Of these 12,000,000 ordinary shares, 8,800,000 are Sogou ordinary shares previously held by Sohu and 3,200,000 are Sogou ordinary shares that were newly-issued on April 14, 2011 by Sogou to Sohu at a price of $0.625 per share, or a total of $2.0 million. As of December 31, 2016, Sohu had contractually granted options for the purchase of 10,705,000 Sogou ordinary shares to members of Sohu’s Board of Directors, management and other key employees under the Sohu Management Sogou Share Option Arrangement. Of the contractually-granted Sogou share options for the purchase of 10,705,000 Sogou ordinary shares, options for the purchase of 8,290,000 Sogou ordinary shares vest and become exercisable in four equal installments, with each installment vesting upon a service period requirement for Sohu’s management and key employees being met, as well as Sogou’s achievement of performance targets for the corresponding period. For purposes of recognition of share-based compensation expense, each installment is considered to be granted as of the date that the performance target has been set. As of December 31, 2016, Sohu had granted Sogou share options for the purchase of 8,290,000 Sogou ordinary shares under the Sohu Management Sogou Share Option Arrangement. As of December 31, 2016, options for the purchase of 8,290,000 Sogou ordinary shares had become vested and exercisable because both the service period and the performance requirements had been met, and vested options for the purchase of 7,512,500 Sogou ordinary shares had been exercised. Options for the purchase of 15,000 Sogou ordinary shares were granted to members of Sohu’s Board of Directors. All of these Sogou share options vested and were exercised in 2015, as the service period requirement for vesting had been met. The remaining options for the purchase of 2,400,000 Sogou ordinary shares vest and become exercisable in five equal installments, with (i) the first installment vesting upon Sogou’s IPO and the expiration of all underwriters’ lockup periods applicable to the IPO, and (ii) each of the four subsequent installments vesting on the first, second, third and fourth anniversary dates, respectively, of the closing of Sogou’s IPO. All installments of the Sogou share options for the purchase of 2,400,000 Sogou ordinary shares that are subject to vesting upon the completion of Sogou’s IPO were considered granted upon the issuance of the options. The completion of a firm commitment IPO is considered to be a performance condition of the awards. An IPO event is not considered to be probable until it is completed. Under ASC 718 As of December 31, 2016, for purposes of recognition of share-based compensation expense, Sohu had granted options for the purchase of 10,705,000 Sogou ordinary shares, of which options for the purchase of 3,189,500 Sogou ordinary shares were outstanding. A summary of Sogou share option activity under the Sohu Management Sogou Share Option Arrangement as of and for the year ended December 31, 2016 is presented below: Options Number Of Shares Weighted Weighted Outstanding at January 1, 2016 3,664 $ 0.623 Granted 58 0.625 Exercised (532 ) 0.625 Forfeited or expired 0 Outstanding at December 31, 2016 3,190 0.623 5.78 Vested at December 31, 2016 and expected to vest thereafter 790 Exercisable at December 31, 2016 790 For the years ended December 31, 2016, 2015 and 2014, total share-based compensation expense recognized for Sogou share options under the Sohu Management Sogou Share Option Arrangement was $0.4 million, $1.0 million and $8.9 million, respectively. As of December 31, 2016, there was no unrecognized compensation expense related to unvested Sogou share options. The method used to determine the fair value of Sogou share options granted to members of Sohu’s Board of Directors, management and other employees was the same as the method used for the Sogou share options granted to Sogou’s management and key employees as described above, except for the assumptions used in the BP Model as presented below: Assumptions Adopted 2014 2015 2016 Average risk-free interest rate 2.62%~2.93% 2.67%~3.01% 2.01%~2.15% Exercise multiple 2~3 2~3 2~3 Expected forfeiture rate (Post-vesting) 0%~8% 0% 0% Weighted average expected option life 7 8 6 Volatility rate 52%~54% 50%~53% 43%~47% Dividend yield 0% 0% 0% Fair value 5.23 2.96~7.03 2.56~3.31 Option Modification In the first and second quarter of 2013, a portion of the Sogou share options granted under the Sogou 2010 Share Incentive Plan and the Sohu Management Sogou Share Option Arrangement were exercised early, and the Sogou ordinary shares issued upon exercise were transferred to trusts with the original option grantees as beneficiaries. The trusts will distribute the Sogou ordinary shares to those beneficiaries in installments based on the vesting requirements under the option agreements. Although these trust arrangements caused a modification of the terms of these Sogou share options, the modification was not considered substantive. Accordingly, no incremental fair value related to these Sogou ordinary shares resulted from the modification, and the remaining share-based compensation expense for these Sogou ordinary shares will continue to be recognized over the original remaining vesting period. As of December 31, 2016, options for the purchase of 11,370,000 Sogou ordinary shares granted under the Sogou 2010 Share Incentive Plan had been exercised early but had not been distributed to the beneficiaries of the trusts. All of the early-exercised Sogou ordinary shares that were distributed to those beneficiaries by the trusts in accordance with the vesting requirements under the option agreements have been included in the disclosures under the heading “Sogou 2010 Share Incentive Plan” above. Tencent Share-based Awards Granted to Employees Who Transferred to Sogou with Soso Search-related Businesses Certain persons who became Sogou employees when Tencent’s Soso search-related businesses were transferred to Sogou on September 16, 2013 had been granted restricted share units under Tencent’s share award arrangements prior to the transfer of the businesses to Sogou. These Tencent restricted share units will continue to vest under the original Tencent share award arrangements provided the transferred employees continue to be employed by Sogou during the requisite service period. After the transfer of the Soso search-related businesses to Sogou, Sogou applied the guidance in ASC 505-50 As of December 31, 2016, unvested Tencent restricted share unit awards held by these employees provided for the issuance of up to 53,100 ordinary shares of Tencent, taking into consideration a five-for-one 3) Changyou.com Limited Share-based Awards Changyou’s 2008 Share Incentive Plan Changyou’s 2008 Share Incentive Plan (the “Changyou 2008 Share Incentive Plan”) originally provided for the issuance of up to 2,000,000 Changyou ordinary shares, including Changyou ordinary shares issued pursuant to the exercise of share options and upon vesting and settlement of restricted share units. The 2,000,000 reserved Changyou ordinary shares became 20,000,000 Changyou ordinary shares in March 2009 when Changyou effected a ten-for-one Prior to the completion of Changyou’s initial public offering, Changyou had granted under the Changyou 2008 Share Incentive Plan 15,000,000 Changyou ordinary shares to its former chief executive officer Tao Wang, through Prominence Investments Ltd., which is an entity that may be deemed under applicable rules of the Securities and Exchange Commission to be beneficially owned by Tao Wang. Through December 31, 2016, Changyou had also granted under the Changyou 2008 Share Incentive Plan restricted share units, settleable upon vesting by the issuance of an aggregate of 4,614,098 Changyou ordinary shares, to certain members of its management other than Tao Wang, and certain other Changyou employees. i) Share-based Awards granted before Changyou’s IPO All of the restricted Changyou ordinary shares and restricted share units granted before Changyou’s IPO became vested by the end of 2013. Hence there has been no share-based compensation expense recognized with respect to such restricted Changyou ordinary shares and restricted share units since their respective vesting dates. ii) Share-based Awards granted after Changyou’s IPO Through December 31, 2016, in addition to the share-based awards granted before Changyou’s IPO, Changyou had granted restricted share units, settleable upon vesting with the issuance of an aggregate of 1,581,226 Changyou ordinary shares, to certain members of its management other than Tao Wang and to certain of its other employees. These Changyou restricted share units are subject to vesting over a four-year period commencing on their grant dates. Share-based compensation expense for such Changyou restricted share units is recognized on an accelerated basis over the requisite service period. The fair value of Changyou restricted share units was determined based on the market price of Changyou’s ADSs on the grant date. A summary of activity for these Changyou restricted share units as of and for the year ended December 31, 2016 is presented below: Restricted Share Units Number of Units (in thousands) Weighted-Average Fair Value Unvested at January 1, 2016 20 $ 14.25 Granted 0 Vested (10 ) Forfeited 0 Unvested at December 31, 2016 10 14.25 Expected to vest after December 31, 2016 10 14.25 For the years ended December 31, 2016, 2015 and 2014, total share-based compensation expense recognized for these Changyou restricted share units was $0.1 million, negative $0.2 million and $1.3 million, respectively. The negative amount in 2015 resulted from Changyou’s reversal of share-based compensation expense for Changyou restricted share units that were cancelled due to the termination of the holders’ employment prior to vesting. As of December 31, 2016, there was $31,000 of unrecognized compensation expense related to these unvested Changyou restricted share units. The expense is expected to be recognized over a weighted average period of 0.55 year. The total fair value of these Changyou restricted share units vested during the years ended December 31, 2016, 2015 and 2014 was $0.1 million, $1.1 million and $1.1 million, respectively. Changyou 2014 Share Incentive Plan On June 27, 2014, Changyou reserved 2,000,000 of its Class A ordinary shares under the Changyou.com Limited 2014 Share Incentive Plan (the “Changyou 2014 Share Incentive Plan”) for the purpose of making share incentive awards to certain members of its management and key employees. On November 2, 2014, the number of Class A ordinary shares reserved under the Changyou 2014 Share Incentive Plan increased from 2,000,000 to 6,000,000. The maximum term of any share right granted under the Changyou 2014 Share Incentive Plan is ten years from the grant date. The Changyou 2014 Share Incentive Plan will expire in June 2024. As of December 31, 2016, 2,823,000 shares were available for grant under the Changyou 2014 Share Incentive Plan. i) Summary of share option activity On November 2, 2014, Changyou approved the contractual grant of an aggregate of 2,416,000 Class A restricted share units to certain members of its management and certain other employees. On February 16, 2015, Changyou’s Board of Directors approved the conversion of 2,400,000 of these Class A restricted share units into options for the purchase of Class A ordinary shares at an exercise price of $0.01. On June 1, 2015, Changyou’s Board of Directors approved the contractual grant of options for the purchase of an aggregate of 1,998,000 Class A ordinary shares to certain members of its management and certain other employees at an exercise price of $0.01. On July 28, 2016, Changyou’s Board of Directors approved the contractual grant of options for the purchase of an aggregate of 100,000 Class A ordinary shares to certain member of its management at an exercise price of $0.01. These Changyou share options vest in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and the achievement of certain subjective performance targets. These Changyou share options are substantially similar to restricted share units except for the nominal exercise price, which would be zero for restricted share units. Under ASC 718-10-25 ASC 718-10-55 re-measured On November 2, 2015, June 1, 2016 and November 2, 2016, 450,000, 329,000 and 450,000, respectively, of these Changyou share options were granted and vested, as a mutual understanding of the subjective performance targets had been reached between Changyou and the recipients, the targets had been satisfied, and the service period requirements had been fulfilled. The share-based compensation expense for these granted Changyou share options has been adjusted and fixed based on their fair value of $4.7 million, $3.2 million and $5.9 million, respectively, at the grant date. A summary of Changyou share option activity under the Changyou 2014 Share Incentive Plan as of and for the year ended December 31, 2016 is presented below: Options Number Of Shares (in thousands) Weighted Weighted Aggregate Outstanding at January 1, 2016 450 $ 0.01 8.84 $ 5,580 Granted 779 0.01 Exercised (377 ) 0.01 Forfeited or expired 0 Outstanding at December 31, 2016 852 0.01 7.93 9,032 Vested at December 31, 2016 852 0.01 Exercisable at December 31, 2016 852 0.01 Note (1): The aggregated intrinsic value in the preceding table represents the difference between Changyou’s closing price of $21.22 per ADS, or $10.61 per Class A ordinary share, on December 31, 2016 and the nominal exercise prices of the share options. For the years ended December 31, 2016, 2015 and 2014, total share-based compensation expense recognized for these share options under the Changyou 2014 Share Incentive Plan was $8.3 million, $15.2 million and $2.6 million, respectively. The total fair values of these Changyou share options vested on their respective vesting dates for the years ended December 31, 2016, 2015 and 2014 were $9.1 million, $4.7 million and nil, respectively. The weighted average grant date fair values of options granted during the years ended December 31, 2015 and 2016 were $6.3 million and $5.9 million, respectively. There were no share options exercised for the year ended December 31, 2015. The total intrinsic value of share options exercised for the year ended December 31, 2016 was $4.3 million. ii) Summary of restricted share unit activity On November 2, 2014, Changyou had contractually granted under the 2014 Share Incentive Plan an aggregate of 16,000 Changyou Class A restricted share units to an employee. These Class A restricted share units are subject to vesting over a four-year period commencing on their grant dates. The fair values as of the grant dates of these Changyou restricted share units were determined based on market price of Changyou’s ADSs on the grant dates. Due to the termination of employment of an employee during the second quarter of 2015 prior to vesting of Changyou restricted share units held by the employee, Changyou reversed share-based compensation expense in the amount of $17,000. There was no unrecognized compensation expense for these restricted share units after the second quarter of 2015, as all of them were forfeited during that quarter. 4) Sohu Video Share-based Awards On January 4, 2012, Sohu Video adopted the Video 2011 Share Incentive Plan, under which 25,000,000 ordinary shares of Sohu Video are reserved for the purpose of making share incentive awards to management and key employees of Sohu Video and to Sohu management. The maximum term of any share incentive award granted under the Video 2011 Share Incentive Plan is ten years from the grant date. The Video 2011 Share Incentive Plan will expire on January 3, 2021. As of December 31, 2016, grants of options for the purchase of 16,368,200 ordinary shares of Sohu Video had been contractually made and were subject to vesting in four equal installments, with each installment vesting upon a service period requirement being met, as well as Sohu Video’s achievement of performance targets for the corresponding period. For purposes of ASC 718-10-25 For the years ended December 31, 2016, 2015 and 2014, total share-based compensation expense recognized for vested Sohu Video options under the Video 2011 Share Incentive Plan was negative $0.8 million, $0.3 million and $4.0 million, respectively. The fair value of the Sohu Video options contractually granted to management and key employees of Sohu Video and to Sohu management was estimated on the reporting date using the BP Model, with the following assumptions used: Assumptions Adopted Average risk-free interest rate 2.63 % Exercise multiple 2.8 Expected forfeiture rate (post-vesting) 19 % Weighted average expected option life 5.0 Volatility rate 46.8 % Dividend yield 0 Fair value 0.71 |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2016 | |
Business Combination [Abstract] | |
Business Combination | 18. Business Combination MoboTap On July 16, 2014, Changyou, through a wholly-owned subsidiary, entered into an investment agreement with MoboTap and MoboTap’s shareholders pursuant to which Changyou purchased from then existing shareholders of MoboTap at the closing, which took place on July 31, 2014, shares of MoboTap representing 51% of the equity interests in MoboTap on a fully-diluted basis for approximately $90.8 million in cash. In addition, Changyou has the right to purchase up to 10% of the equity interests in MoboTap from the noncontrolling shareholders, at a price of 20% below the IPO price, before a qualified IPO of MoboTap. If MoboTap achieves specified performance milestones for 2016 and certain specified key employees continue their employment with MoboTap at the time the milestones are achieved, but there has not been an IPO by MoboTap, the noncontrolling shareholders of MoboTap will have a one-time On the acquisition date, the allocation of the consideration of the assets acquired and liabilities assumed based on their fair values was as follows (in thousands): As of July 31, 2014 Cash consideration $ 90,830 Repurchase option 793 Identifiable intangible assets acquired 27,000 Goodwill 113,040 Other assets 6,714 Put option (298 ) Liabilities assumed (2,995 ) Noncontrolling interest (53,424 ) Total $ 90,830 The acquired identifiable intangible assets represent the Dolphin Browser user base, technology and trademark, the useful lives of which were 2.4 years, 5.4 years and 10.4 years, respectively. The acquired user base was valued with the cost saving approach, and the acquired technology and trademark were valued with the income approach. Goodwill of $113.0 million primarily represents the expected synergies from combining the operations of Changyou and MoboTap, which are complementary to each other. In accordance with ASC 350 Based on an assessment of MoboTap’s financial performance conducted in connection with the acquisition, MoboTap was not considered material to the Sohu Group. Thus the Sohu Group’s management concluded that the presentation of pro forma financial information with respect to the results of operations of the Sohu Group including the acquired MoboTap was not necessary. The operating results of MoboTap, which are not significant to the Sohu Group, have been included in the Sohu Group’s consolidated financial statements since the acquisition date. As the Dolphin Browser serves as a gateway to a host of user activities on mobile devices and contributes to Changyou’s platform channel business, MoboTap is reported under the Changyou segment. In 2015, given that the performance of the Dolphin Browser operated by MoboTap was below original expectations, Changyou’s management concluded that the Dolphin Browser was unable to provide the expected synergies with Changyou’s platform business. Accordingly, Changyou recognized a $29.6 million impairment loss for goodwill and a $8.9 million impairment loss for acquired intangible assets generated in the acquisition of the MoboTap business. In 2016, Changyou’s Board of Directors approved the disposal of Changyou’s 51% equity interest in MoboTap. As of December 31, 2016, Changyou has been negotiating with a potential buyer on the terms of disposal. Accordingly, the assets and liabilities attributable to MoboTap are classified as assets and liabilities held for sale and measured at the lower of their carrying amounts and their fair values, less selling costs, in the consolidated balance sheet as of December 31, 2016. Details see Note 10 – Fair Value Measurements. |
Noncontrolling Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2016 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | 19. Noncontrolling Interest Currently, the noncontrolling interests in the Sohu GroupÂ’s consolidated financial statements primarily consist of noncontrolling interests for Sogou and Changyou. Noncontrolling Interest in the Consolidated Balance Sheets As of December 31, 2015 and 2016, noncontrolling interest in the consolidated balance sheets was $489.7 million and $564.2 million, respectively. As of December 31, 2015 2016 Sogou $125,314 $165,584 Changyou 364,416 398,631 Total $489,730 $564,215 Noncontrolling Interest of Sogou As of December 31, 2016 and 2015, noncontrolling interest of Sogou of $165.6 million and $125.3 million, respectively, was recognized in the Sohu GroupÂ’s consolidated balance sheets, representing SogouÂ’s cumulative results of operations attributable to shareholders other than Sohu.com Inc., and reflecting the reclassification of SogouÂ’s share-based compensation expense from shareholdersÂ’ additional paid-in Noncontrolling Interest of Changyou As of December 31, 2016 and 2015, noncontrolling interest of Changyou of $398.6 million and $364.4 million, respectively, was recognized in the Sohu GroupÂ’s consolidated balance sheets, representing a 31% economic interest for both 2016 and 2015 in ChangyouÂ’s net assets held by shareholders other than Sohu.com Inc. and reflecting the reclassification of ChangyouÂ’s share-based compensation expense from shareholdersÂ’ additional paid-in Noncontrolling Interest in the Consolidated Statements of Comprehensive Income /(Loss) For the years ended December 31, 2016, 2015 and 2014, respectively, the Sohu Group had net income of $109.0 million, net income of $146.5 million and net loss of $32.3 million, respectively, attributable to the noncontrolling interest in the consolidated statements of comprehensive income /(loss). Year Ended December 31, 2014 2015 2016 Sogou $ (14,202 ) $ 101,656 $ 61,403 Changyou (18,873 ) 44,886 47,645 Others 766 0 0 Total $ (32,309 ) $ 146,542 $ 109,048 Noncontrolling Interest of Sogou For the years ended December 31, 2016, 2015 and 2014, respectively, a $61.4 million net income, a $101.7 million net income and a $14.2 million net loss, respectively, attributable to the noncontrolling interest of Sogou was recognized in the Sohu GroupÂ’s consolidated statements of comprehensive income /(loss), representing SogouÂ’s net income /(loss) attributable to shareholders other than Sohu.com Inc. Noncontrolling Interest of Changyou For the years ended December 31, 2016, 2015 and 2014, respectively, a $47.6 million net income, a $44.9 million net income and a $18.9 million net loss, respectively, attributable to the noncontrolling interest of Changyou was recognized in the Sohu GroupÂ’s consolidated statements of comprehensive income /(loss), representing a 31%, 31% and 32%, respectively, economic interest in Changyou attributable to shareholders other than Sohu.com Inc. |
Net Income _(Loss) per Share
Net Income /(Loss) per Share | 12 Months Ended |
Dec. 31, 2016 | |
Net Income /(Loss) per Share [Abstract] | |
Net Income /(Loss) per Share | 20. Net Income /(Loss) per Share Basic net income /(loss) per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income /(loss) per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares comprise shares issuable upon the exercise or settlement of share-based awards using the treasury stock method. The dilutive effect of share-based awards with performance requirements is not considered before the performance targets are actually met. The computation of diluted net income /(loss) per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net income /(loss) per share. For the year ended December 31, 2016, 232,488 common shares potentially issuable upon the exercise or settlement of share-based awards using the treasury stock method were anti-dilutive and excluded from the denominator for calculation of diluted net loss per share. Additionally, for purposes of calculating the numerator of diluted net income /(loss) per share, the net income /(loss) attributable to Sohu.com Inc. is adjusted as follows. The adjustment will not be made if there is an anti-dilutive effect. (1) Sogou’s net income /(loss) attributable to Sohu.com Inc. is determined using the percentage that the weighted average number of Sogou shares held by Sohu.com Inc. represents of the weighted average number of Sogou Preferred Shares and Ordinary Shares, shares issuable upon the conversion of convertible preferred shares under the if-converted In the calculation of Sohu.com Inc.’s diluted net income /(loss) per share, assuming a dilutive effect, the percentage of Sohu.com Inc.’s shareholding in Sogou was calculated by treating convertible preferred shares issued by Sogou as having been converted at the beginning of the period and unvested Sogou share options with the performance targets achieved as well as vested but unexercised Sogou share options as having been exercised during the period. The dilutive effect of share-based awards with a performance requirement was not considered before the performance targets were actually met. The effect of this calculation is presented as “incremental dilution from Sogou” in the table below. Assuming an anti-dilutive effect, all of these Sogou shares and share options are excluded from the calculation of Sohu.com Inc.’s diluted income /(loss) per share. As a result, Sogou’s net income /(loss) attributable to Sohu.com Inc. on a diluted basis equals the number used for the calculation of Sohu.com Inc.’s basic net income /(loss) per share. For the year ended December 31, 2016, all of these Sogou shares and share options had an anti-dilutive effect, and therefore were excluded from the calculation of Sohu.com Inc.’s diluted net income /(loss) per share, and “incremental dilution from Sogou” in the table below was zero. (2) Changyou’s net income /(loss) attributable to Sohu.com Inc. is determined using the percentage that the weighted average number of Changyou shares held by Sohu.com Inc. represents of the weighted average number of Changyou ordinary shares and shares issuable upon the exercise or settlement of share-based awards under the treasury stock method, and not by using the percentage held by Sohu.com Inc. of the total economic interest in Changyou, which is used for the calculation of basic net income per share. In the calculation of Sohu.com Inc.’s diluted net income /(loss) per share, assuming a dilutive effect, all of Changyou’s existing unvested restricted share units and share options, and vested restricted share units and share options that have not yet been settled, are treated as vested and settled by Changyou under the treasury stock method, causing the percentage of the weighted average number of shares held by Sohu.com Inc. in Changyou to decrease. As a result, Changyou’s net income /(loss) attributable to Sohu.com Inc. on a diluted basis decreased accordingly. The effect of this calculation is presented as “incremental dilution from Changyou” in the table below. Assuming an anti-dilutive effect, all of these Changyou restricted share units and share options are excluded from the calculation of Sohu.com Inc.’s diluted net income /(loss) per share. As a result, Changyou’s net income /(loss) attributable to Sohu.com Inc. on a diluted basis equals the number used for the calculation of Sohu.com Inc.’s basic net income /(loss) per share. For the year ended December 31, 2016, all of these Changyou restricted share units had a dilutive effect, and therefore were included in the calculation of Sohu.com Inc.’s diluted net income /(loss) per share. This impact is presented as “incremental dilution from Changyou” in the table below. In March 2014, Sogou purchased from China Web 14.4 million Series A Preferred Shares of Sogou for an aggregate purchase price of $47.3 million. In September 2015, Sogou purchased from Photon 6.4 million Series A Preferred Shares of Sogou for an aggregate purchase price of $21.0 million. These transactions gave rise to deemed dividends of $27.7 million and $11.9 million, respectively, which were deemed to have been contributed by Sohu.com Inc., as a holder of ordinary shares of Sogou, representing a portion of the differences between the prices Sogou paid to China Web and Photon for the Series A Preferred Shares and the carrying amounts of these Series A Preferred Shares in the Group’s consolidated financial statements. The following table presents the calculation of the Sohu Group’s basic and diluted net loss per share (in thousands, except per share data). Year Ended December 31, 2014 2015 2016 Numerator: Net loss attributable to Sohu.com Inc., basic (after subtracting the dividend or deemed dividend to noncontrolling Sogou Series A Preferred shareholders) $ (166,657 ) $ (49,598 ) $ (224,021 ) Effect of dilutive securities: Incremental dilution from Sogou (3,919 ) 0 0 Incremental dilution from Changyou 0 (1,231 ) (1,639 ) Net loss attributable to Sohu.com Inc., diluted $ (170,576 ) $ (50,829 ) $ (225,660 ) Denominator: Weighted average basic common shares outstanding 38,468 38,598 38,706 Effect of dilutive securities: Share options and restricted share units 0 0 0 Weighted average diluted common shares outstanding $ 38,468 $ 38,598 $ 38,706 Basic net loss per share attributable to Sohu.com Inc. $ (4.33 ) $ (1.28 ) $ (5.79 ) Diluted net loss per share attributable to Sohu.com Inc. $ (4.43 ) $ (1.32 ) $ (5.83 ) |
China Contribution Plan
China Contribution Plan | 12 Months Ended |
Dec. 31, 2016 | |
China Contribution Plan [Abstract] | |
China Contribution Plan | 21. China Contribution Plan The Sohu GroupÂ’s subsidiaries and consolidated VIEs in China participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese labor regulations require the GroupÂ’s subsidiaries and consolidated VIEs to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the GroupÂ’s China-based subsidiaries and consolidated VIEs have no further commitments beyond their monthly contributions. For the years ended December 31, 2016, 2015 and 2014, the GroupÂ’s China based subsidiaries and consolidated VIEs contributed a total of $131.6 million, $132.6 million and $134.2 million, respectively, to these funds. |
Profit Appropriation
Profit Appropriation | 12 Months Ended |
Dec. 31, 2016 | |
Profit Appropriation [Abstract] | |
Profit Appropriation | 22. Profit Appropriation The Sohu Group’s China-based subsidiaries and VIEs are required to make appropriations to certain non-distributable In accordance with the China Foreign Investment Enterprises laws, those of the Group’s China-based subsidiaries that are considered under PRC law to be WFOEs are required to make appropriations from their after-tax “after-tax-profit non-distributable after-tax-profit Pursuant to the China Company Laws, those of the Group’s China-based subsidiaries that are considered under PRC law to be domestically funded enterprises, as well as the Group’s VIEs, are required to make appropriations from their after-tax-profit non-distributable after-tax-profit Upon certain regulatory approvals and subject to certain limitations, the general reserve fund and the statutory surplus fund can be used to offset prior year losses, if any, and can be converted into paid-in capital of the applicable entity. For the years ended December 31, 2016, 2015 and 2014, the total amount of profits contributed to these funds by the Group was $4.3 million, $7.7 million and $4.9 million, respectively. As of December 31, 2016 and 2015, the total amount of profits contributed to these funds by the Group was $51.0 million and $46.8 million, respectively. As a result of these and other restrictions under PRC laws and regulations, the Group’s China-based subsidiaries and VIEs are restricted in their ability to transfer a portion of their net assets in the form of non-distributable |
Concentration Risks
Concentration Risks | 12 Months Ended |
Dec. 31, 2016 | |
Concentration Risks [Abstract] | |
Concentration Risks | 23. Concentration Risks Because its operations are substantially conducted in the PRC, the Sohu Group is subject to PRC-related Operation Risk For the years ended December 31, 2016, 2015 and 2014, there are no revenues from clients that individually represent greater than 10% of the total revenues. For the year ended December 31, 2016, 13% of the Sohu GroupÂ’s total revenue and 56% of the Sohu GroupÂ’s online game revenue was derived from a single PC game, TLBB, which was launched in May 2007. Financial instruments that potentially subject the Sohu Group to concentration risks consist primarily of cash and cash equivalents and short-term investments. Cash and cash equivalents in Sohu Group are mainly denominated in RMB and in U.S. dollars. Short-term investments are denominated in RMB. The Group may experience economic losses and negative impacts on earnings and equity as a result of fluctuations in the exchange rate between the U.S. dollar and the RMB. Moreover, the Chinese government imposes controls on the convertibility of RMB into foreign currencies and, in certain cases, the remittance of currency out of the PRC. The Group may experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currency. Credit Risk As of December 31, 2016, approximately 38% of the Sohu GroupÂ’s cash and cash equivalents were held in 15 financial institutions in China. The remaining cash and cash equivalents were held primarily in financial institutions in Macao and Hong Kong. As of December 31, 2015, approximately 59% of the Sohu GroupÂ’s cash and cash equivalents were held in 16 financial institutions in China. The remaining cash and cash equivalents were held primarily in financial institutions in Hong Kong and the U.S. The Sohu Group holds its cash and bank deposits at Chinese financial institutions that are among the largest and most respected in the PRC and at international financial institutions with high ratings from internationally-recognized rating agencies. The management chooses these institutions because of their reputations and track records for stability, and their known large cash reserves, and management periodically reviews these institutionsÂ’ reputations, track records, and reported reserves. Management expects that any additional institutions that the Sohu Group uses for its cash and bank deposits will be chosen with similar criteria for soundness. As a further means of managing its credit risk, the Sohu Group holds its cash and bank deposits in a number of different financial institutions. As of December 31, 2016 and 2015, the Sohu Group held its cash and bank deposits in different financial institutions and held no more than approximately 32% and 28%, respectively, of its total cash at any single institution. Under PRC law, it is generally required that a commercial bank in the PRC that holds third party cash deposits protect the depositorsÂ’ rights over and interests in their deposited money; PRC banks are subject to a series of risk control regulatory standards; and PRC bank regulatory authorities are empowered to take over the operation and management of any PRC bank that faces a material credit crisis. For the credit risk related to accounts receivable, the Sohu Group performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. Historically, such losses have been within managementÂ’s expectations. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2016 | |
Restricted Net Assets [Abstract] | |
Restricted Net Assets | 24. Restricted Net Assets Relevant PRC law and regulations permit payment of dividends by PRC-based PRC-based after-tax PRC-based PRC-based PRC-based |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2016 | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract] | |
Schedule I - Condensed Financial Information of Registrant | SOHU.COM INC. CONDENSED BALANCE SHEETS (In thousands) As of December 31, 2015 2016 ASSETS Current assets: Cash and cash equivalents $ 16,096 $ 8,990 Prepaid and other current assets 8,320 6,218 Due from subsidiaries and VIEs 3,806 3,806 Total current assets 28,222 19,014 Interests in subsidiaries and VIEs 1,232,327 989,875 Total assets $ 1,260,549 $ 1,008,889 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities 4,558 4,501 Long-term liabilities 14,969 10,808 Total liabilities 19,527 15,309 Shareholders’ equity: Common stock: $0.001 par value per share (75,400 shares authorized; 38,653 shares and 38,742 shares, respectively, issued and outstanding as of December 31, 2015 and 2016) 45 45 Additional paid-in 798,357 821,867 Treasury stock (5,889 shares as of both December 31, 2015 and 2016) (143,858 ) (143,858 ) Accumulated other comprehensive income 50,151 3,220 Retained earnings 536,327 312,306 Total shareholders’ equity 1,241,022 993,580 Total liabilities and shareholders’ equity $ 1,260,549 $ 1,008,889 SOHU.COM INC. CONDENSED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (In thousands) Year Ended December 31, 2014 2015 2016 Revenues $ 0 $ 0 $ 0 Cost of revenues 0 0 0 Gross profit 0 0 0 Operating expenses: General and administrative 7,829 22,091 8,845 Operating loss (7,829 ) (22,091 ) (8,845 ) Equity in loss of subsidiaries and VIEs (129,324 ) (4,430 ) (217,408 ) Other expense (28 ) (12 ) (54 ) Interest income 76 95 107 Loss before income tax expense /(benefit) (137,105 ) (26,438 ) (226,200 ) Income tax expense /(benefit) 1,805 11,249 (2,179 ) Net loss (138,910 ) (37,687 ) (224,021 ) Other comprehensive loss (6,903 ) (59,251 ) (46,931 ) Comprehensive loss $ (145,813 ) $ (96,938 ) $ (270,952 ) SOHU.COM INC. CONDENSED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2014 2015 2016 Cash flows from operating activities: Net loss $ (138,910 ) $ (37,687 ) $ (224,021 ) Adjustments to reconcile net loss to net cash used in operating activities: Investment income from subsidiaries and VIEs 129,324 4,430 217,408 Share-based compensation expense 1,120 15,393 1,309 Changes in current assets and liabilities: Prepaid and other current assets (110 ) (71 ) 842 Taxes payable (510 ) 811 (630 ) Accrued liabilities (3,996 ) 7,905 (2,014 ) Net cash used in operating activities (13,082 ) (9,219 ) (7,106 ) Cash flows from investing activities: Dividend received 0 0 0 Net cash provided by investing activities 0 0 0 Cash flows from financing activities: Issuance of common stock 612 2,126 0 Net cash provided by financing activities 612 2,126 0 Net decrease in cash and cash equivalents (12,470 ) (7,093 ) (7,106 ) Cash and cash equivalents at beginning of year 35,659 23,189 16,096 Cash and cash equivalents at end of year $ 23,189 $ 16,096 $ 8,990 NOTES TO SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF SOHU.COM INC. 1. The condensed financial statements of Sohu.com Inc. (the “Company”) have been prepared in accordance with U.S. GAAP. 2. The Company records its investment in subsidiaries under the equity method. Such investment and long-term loans to subsidiaries are presented on the balance sheets as interests in subsidiaries and consolidated VIEs and the profit of the subsidiaries is presented as equity in profit of subsidiaries and consolidated VIEs on the statements of comprehensive income. For VIEs where the Company is the primary beneficiary, the amount of the Company’s investment is included on the balance sheets as interests in subsidiaries and consolidated VIEs, and the profit or loss of the subsidiaries and consolidated VIEs is included in equity in profit of subsidiaries and consolidated VIEs on the statements of comprehensive income. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in U.S. have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the Consolidated Financial Statements of the Company. 3. As of December 31, 2016 and 2015, there were no material contingencies, significant provisions of long-term obligations, or mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company, except for those which have been separately disclosed in the Consolidated Financial Statements, if any. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Polices) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Accounting Standards | Accounting Standards The consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”) to reflect the financial position and results of operations of the Sohu Group. |
Use of Estimates | Use of Estimates The preparation of these financial statements requires the Sohu Group to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going |
Basis of Consolidation and Recognition of Noncontrolling Interest | Basis of Consolidation and Recognition of Noncontrolling Interest The Sohu Group’s consolidated financial statements include the accounts of Sohu.com Inc. and its subsidiaries and consolidated VIEs. All intercompany transactions are eliminated. VIE Consolidation The Sohu Group’s VIEs are wholly or partially owned by certain employees of the Group as nominee shareholders. For consolidated VIEs, management made evaluations of the relationships between the Sohu Group and the VIEs and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluation, management also took into account the fact that, as a result of such contractual arrangements, the Group controls the shareholders’ voting interests in these VIEs. As a result of such evaluation, management concluded that the Sohu Group is the primary beneficiary of its consolidated VIEs. Noncontrolling Interest Recognition Noncontrolling interests are recognized to reflect the portion of the equity of subsidiaries and VIEs which is not attributable, directly or indirectly, to the controlling shareholders. Currently, the noncontrolling interests in the Sohu Group’s consolidated financial statements primarily consist of noncontrolling interests for Sogou and Changyou. Noncontrolling Interest for Sogou Sogou’s Share Structure As of December 31, 2016, Sogou had outstanding a combined total of 334,746,495 ordinary shares and preferred shares held as follows: (i) Sohu.com Inc.: 131,697,750 Class A Ordinary Shares, of which 4,484,500 shares may be purchased by Sohu management and key employees under an option arrangement; (ii) Photon Group Limited, an investment vehicle of the Sohu Group’s Chairman and Chief Executive Officer Charles Zhang (“Photon”): 32,000,000 Series A Preferred Shares; (iii) Tencent: 6,757,875 Class A Ordinary Shares, 65,431,579 Series B Preferred Shares and 79,368,421 non-voting (iv) Various employees of Sogou and Sohu: 19,490,870 Class A Ordinary Shares. Sohu’s Shareholding in and Control of Sogou As of December 31, 2016, Sohu.com Inc. held approximately 36% of the outstanding equity capital of Sogou on a fully-diluted basis assuming for such purpose that all share options under the Sogou 2010 Share Incentive Plan and all share options under the Sohu Management Sogou Share Option Arrangement are granted and exercised, and that all of the Sogou Class A Ordinary Shares that Sogou has repurchased are re-issued non-voting re-issued As Sogou’s controlling shareholder, Sohu.com Inc. consolidates Sogou in its consolidated financial statements, and recognizes noncontrolling interest reflecting economic interests in Sogou held by shareholders other than Sohu.com Inc. (the “Sogou noncontrolling shareholders”). Sogou’s net income/(loss) attributable to the Sogou noncontrolling shareholders is recorded as noncontrolling interest in the Sohu Group’s consolidated statements of comprehensive income. Sogou’s cumulative results of operations attributable to the Sogou noncontrolling shareholders, along with changes in shareholders’ equity/(deficit) and adjustment for share-based compensation expense in relation to those share-based awards which are unvested and vested but not yet settled and the Sogou noncontrolling shareholders’ investments in Sogou Series A Preferred Shares and Series B Preferred Shares (collectively, the “Sogou Preferred Shares”) and Ordinary Shares are accounted for as a noncontrolling interest classified as permanent equity in the Sohu Group’s consolidated balance sheets, as the Sohu Group has the right to reject a redemption requested by the noncontrolling shareholders. These treatments are based on the terms governing the investment, and on the terms of the classes of Sogou shares held, by the noncontrolling shareholders in Sogou. Principles of Allocation of Sogou’s Profit and Loss By virtue of the terms of Sogou Preferred Shares and Class A Ordinary Shares and Class B Ordinary Shares, Sogou’s losses are allocated in the following order: (i) net losses are allocated to holders of Sogou Class A Ordinary Shares and the holder of Sogou Class B Ordinary Shares until their basis in Sogou decreased to zero; (ii) additional net losses are allocated to holders of Sogou Series A Preferred Shares until their basis in Sogou decreased to zero; (iii) additional net losses are allocated to the holder of Sogou Series B Preferred Shares until its basis in Sogou decreases to zero; and (iv) further net losses are allocated between Sohu.com Inc. and noncontrolling shareholders based on their shareholding percentage in Sogou. Net income from Sogou is allocated in the following order: (i) net income is allocated between Sohu.com Inc. and noncontrolling shareholders based on their shareholding percentage in Sogou until their basis in Sogou increases to zero; (ii) additional net income is allocated to the holder of Sogou Series B Preferred Shares to bring its basis back; (iii) additional net income is allocated to holders of Sogou Series A Preferred Shares to bring their basis back; (iv) further net income is allocated to holders of Sogou Class A Ordinary Shares and the holder of Sogou Class B Ordinary Shares to bring their basis back; and (v) further net income is allocated between Sohu.com Inc. and noncontrolling shareholders based on their shareholding percentage in Sogou. Key Terms of Sogou Preferred Shares The following is a summary of some of the key terms of the Sogou Preferred Shares under Sogou’s Memorandum and Articles of Association as currently in effect. • Dividend Rights Sogou may not declare or pay dividends on its Class A Ordinary Shares or Class B Ordinary Shares (collectively, “Ordinary Shares”) unless the holders of the Sogou Preferred Shares then outstanding first receive a dividend on each outstanding Preferred Share in an amount at least equal to the sum of (i) the dividends that would have been payable to the holder of such Preferred Share if such share had been converted into Ordinary Shares, at the then-applicable conversion rate, immediately prior to the record date for such dividend, and (ii) all accrued and unpaid Accruing Dividends. “Accruing Dividends” are calculated from the date of issuance of the Series A Preferred Shares at the rate per annum of $0.0375 per Series A Preferred Share and from the date of issuance of the Series B Preferred Shares at the rate per annum of $0.411 per Series B Preferred Share. • Liquidation Rights In the event of any “Liquidation Event,” such as the liquidation, dissolution or winding up of Sogou, a merger or consolidation of Sogou resulting in a change of control, the sale of substantially all of Sogou’s assets or similar events, the holders of Series B Preferred Shares are entitled to receive an amount per share equal to the greater of (i) $6.847 plus any unpaid Accruing Dividends or (ii) such amount per share as would have been payable if the Series B Preferred Shares had been converted into Ordinary Shares prior the Liquidation Event, and holders of Series A Preferred Shares are entitled to receive, after payment to the holders of the Series B Preferred Shares but before any payment to holders of Ordinary Shares, an amount equal to the greater of (i) 1.3 times their original investment in the Series A Preferred Shares plus all accrued but unpaid Accruing Dividends or (ii) such amount per share as would be payable if the Series A Preferred Shares had been converted into Ordinary Shares immediately prior to the Liquidation Event. • Redemption Rights The Sogou Preferred Shares are not redeemable at the option of the holders. • Conversion Rights Each Sogou Preferred Share is convertible, at the option of the holder, at any time, and without the payment of additional consideration by the holder. Each Sogou Preferred Share is convertible into such number of Class A Ordinary Shares as is determined, in the case of Series A Preferred Shares, by dividing $0.625 by the then-effective conversion price for Series A Preferred Shares, which is initially $0.625, and, in the case of Series B Preferred Shares, by dividing $7.267 by the then-effective conversion price for Series B Preferred Shares, which is initially $7.267. The conversion prices of the Sogou Preferred Shares are subject to adjustment on a weighted average basis upon the issuance of additional equity shares, or securities convertible into equity shares, at a price per share less than $0.625, in the case of Series A Preferred Shares, or less than $7.267, in the case of Series B Preferred Shares, subject to certain customary exceptions, such as shares issued pursuant to the Sogou 2010 Share Incentive Plan. Each Sogou Preferred Share will be automatically converted into Class A Ordinary Shares of Sogou upon the closing of a qualified IPO of Sogou based on the then-effective conversion ratio of such Sogou Preferred Share, which is currently one-for-one • Voting Rights Each holder of Sogou Preferred Shares is entitled to cast the number of votes equal to the number of Class A Ordinary Shares into which the Sogou Preferred Shares held by such holder are then convertible. • Other Rights The holders of Sogou Preferred Shares have various other rights typical of preferred share investments. Key Terms of Sogou Class A Ordinary Shares and Class B Ordinary Shares The Class A Ordinary Shares and Class B Ordinary Shares have identical rights, except that Class B Ordinary Shares do not have voting rights unless the holders of at least a majority of the then outstanding Class B Ordinary Shares elect, by written notice to Sogou, to convert them into shares with voting rights. Noncontrolling Interest for Changyou Changyou is a public company listed on the NASDAQ Global Select Market. As of December 31, 2016, Sohu.com Inc. held approximately 69% of the combined total of Changyou’s outstanding ordinary shares, and controlled approximately 96% of the total voting power in Changyou. As Changyou’s controlling shareholder, Sohu.com Inc. consolidates Changyou in its consolidated financial statements, and recognizes noncontrolling interest reflecting the economic interest in Changyou held by shareholders other than Sohu.com Inc.(the “Changyou noncontrolling shareholders”). Changyou’s net income /(loss) attributable to the Changyou noncontrolling shareholders is recorded as noncontrolling interest in the Sohu Group’s consolidated statements of comprehensive income, based on their share of the economic interest in Changyou. Changyou’s cumulative results of operations attributable to the Changyou noncontrolling shareholders, along with changes in shareholders’ equity, adjustment for share-based compensation expense in relation to those share-based awards which are unvested and vested but not yet settled and adjustment for changes in Sohu.com Inc.’s ownership in Changyou, are recorded as noncontrolling interest in the Sohu Group’s consolidated balance sheets. |
Segment Reporting | Segment Reporting The Sohu Group’s segments are business units that offer different services and are reviewed separately by the chief operating decision maker (the “CODM”), or the decision making group, in deciding how to allocate resources and in assessing performance. The Group’s CODM is Sohu.com Inc.’s Chief Executive Officer. |
Revenue Recognition | Revenue Recognition The Sohu Group recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. The recognition of revenues involves certain management judgments. The amount and timing of the revenues could be materially different for any period if management made different judgments or utilized different estimates. Barter trade transactions in which physical goods or services (other than advertising services) are received in exchange for advertising services are recorded based on the fair values of the goods and services received. For online advertising-for-online Online Advertising Revenues Online advertising revenues include revenues from brand advertising services as well as search and search-related services. The Group recognizes revenue for the amount of fees it receives from its advertisers, after deducting agent rebates and net of value-added tax (“VAT”) and related surcharges. Brand Advertising Revenues Business Model Through PCs and mobile devices, the Group provides advertisement placements to its advertisers on different Internet platforms and in different formats, which include banners, links, logos, buttons, full screen, pre-roll, mid-roll, in-feed Currently the brand advertising business has four main types of pricing models, consisting of the Fixed Price model, the Cost Per Impression (“CPM”) model, the E-commerce Fixed Price model Under the Fixed Price model, a contract is signed to establish a fixed price for the advertising services to be provided. Revenue is recognized based on the contract price and the period of display. CPM model Under the CPM model, the unit price for each qualifying display is fixed, but there is no overall fixed price for the advertising services stated in the contract with the advertiser. A qualifying display is defined as the appearance of an advertisement, where the advertisement meets criteria specified in the contract. Revenue is recognized based on the fees charged to the advertisers, which are based on the unit prices and the number of qualifying displays. E-commerce Under the e-commerce CPC model Under the CPC model, there is no overall fixed price for advertising services stated in the contract with the advertiser. The Group charges advertisers on a per-click Revenue Recognition For brand advertising revenue recognition, prior to entering into contracts, the Sohu Group makes a credit assessment of the advertisers. For contracts for which collectability is determined to be reasonably assured, the Sohu Group recognizes revenue when all revenue recognition criteria are met. In other cases, the Sohu Group only recognizes revenue when the cash is received and all other revenue recognition criteria are met. The Sohu Group treats advertising contracts with multiple deliverable elements as separate units of accounting for revenue recognition purposes and recognizes revenue on a periodic basis during the contract period when each deliverable service is provided. Since the contract price is for all deliverables under one advertising contract, the Sohu Group allocates the contract price among all the deliverables at the inception of the arrangement on the basis of their relative selling prices according to the selling price hierarchy established by ASU No. 2009-13 Search and Search-related Revenues Search and search-related services primarily include pay-for-click Pay-for-click Pay-for-click pay-for-click pay-for-click per-click pay-for-click per-click Online Marketing Services on Web Directories Operated by Sogou Online marketing services on Web directories operated by Sogou mainly consist of displaying advertisers’ promotional links on the Web pages of Web directories. Revenue for online marketing services on Web directories operated by Sogou is normally recognized on a straight-line basis over the contract period, provided the Sohu Group’s obligations under the contract have been met and all revenue recognition criteria have been met. Both pay-for-click pay-for-click pre-agreed Online Game Revenues Changyou’s online game revenues are generated primarily from its self-operated and licensed-out in-game Self-Operated Games Changyou is the primary obligor of its self-operated games. Changyou hosts the games on its own servers and is responsible for the sale and marketing of the games as well as customer service. Accordingly, revenues are recorded gross of revenue sharing-payments to third-party developers and/or mobile APP stores, but are net of VAT and discounts to game card distributors where applicable. Changyou obtains revenues from the sale of in-game PC Games Proceeds from the self-operation of PC games are collected from players and third-party game card distributors through sales of Changyou’s game points on its online payment platform and prepaid game cards. Self-operated PC games are either developed in house or licensed from third-party developers. For licensed PC games, Changyou remits a pre-agreed Mobile Games For self-operated mobile games, Changyou sells game points to its game players via third-party mobile APP stores. The mobile APP stores in turn pay Changyou proceeds after deducting their share of pre-agreed Self-operated mobile games are either developed in house or licensed from or jointly developed with third-party developers. For licensed and jointly developed mobile games, Changyou remits a pre-agreed Web Games Changyou continued to operate a small portfolio of self-operated Web games after its sale of the 7Road business in 2015. Proceeds from self-operated Web games are collected from players through the sale of game points. Licensed Out Games Changyou also authorizes third parties to operate its online games. Licensed out games include PC games and mobile games developed in house and mobile games jointly developed with third-party developers. Changyou receives monthly revenue-based royalty payments from all the third-party licensee operators. Changyou receives additional up-front pre-agreed Other Revenues Sohu Sohu also engages in the other business, which consists primarily of paid subscription services, interactive broadcasting services, sub-licensing Sogou Other revenues attributable to Sogou are primarily IVAS revenues derived from the operation of Web games and mobile games of third-party developers as well as other services and products that Sogou provides to users. Changyou Other revenues attributable to Changyou are primarily from its cinema advertising business and IVAS. In its cinema advertising business, Changyou provides clients advertising placements in slots that are shown in theaters before the screening of movies. The rights to place advertisements in such advertising slots are granted under contracts Changyou signs with different theaters. When all the recognition criteria are met, revenues from cinema advertising are recognized based on a percentage of the advertising slots actually delivered or on a straight-line basis over the contract period. Changyou provides IVAS primarily through software applications for PCs and mobile devices offered by MoboTap on the Dolphin Browser and by RaidCall. Revenues from IVAS are recognized during the period the service rendered or items consumed under the gross method, as Changyou is the principal obligor for provision of the services. |
Cost of Revenues | Cost of Revenues Cost of Online Advertising Revenues Cost of online advertising revenues includes cost of revenues from brand advertising services as well as cost of revenues from search and search-related services. Cost of Brand Advertising Revenues Cost of brand advertising revenues mainly consists of content and license costs, bandwidth leasing costs, and salary and benefits expense. Cost of Search and Search-related Revenues Cost of search and search-related revenues mainly consists of traffic acquisition costs, bandwidth leasing costs, depreciation expenses, as well as salary and benefits expenses. Traffic acquisition costs represent payments made to Sogou Website Alliance members. Sogou pays Sogou Website Alliance members based either on revenue-sharing arrangements or on a pre-agreed pay-for-click Cost of Online Game Revenues Cost of online game revenues mainly consists of revenue-sharing payments, salary and benefits expense, bandwidth leasing costs, content and license costs, amortization and depreciation expenses, and other direct costs. Cost of Other Revenues Cost of other revenues mainly consists of payments to theaters and film production companies for pre-film |
Product Development Expenses | Product Development Expenses Product development expenses mainly consist of salary and benefits expenses, content and license expenses, technical service fees, depreciation and amortization expenses, share-based compensation, and facilities expenses. These expenses are incurred for the enhancement and maintenance of the Sohu GroupÂ’s Internet platforms as well as for its products and services, including the development costs of online games prior to the establishment of technological feasibility and maintenance costs after the online games are available for marketing. |
Sales and Marketing Expenses | Sales and Marketing Expenses Sales and marketing expenses mainly consist of advertising and promotional expenses, salary and benefits expenses, travel expenses, and facility expenses. Advertising and promotional expenses generally represent the expenses of promotions to create or stimulate a positive image of the Sohu Group or a desire to subscribe for the GroupÂ’s products and services. Advertising and promotional expenses are expensed as incurred. |
General and Administrative Expenses | General and Administrative Expenses General and administrative expenses mainly consist of salary and benefits expenses, professional service fees, facility expenses, travel expenses, share-based compensation expense, and depreciation and amortization expenses. |
Share-based Compensation Expense | Share-based Compensation Expense Sohu (excluding Fox Video Limited), Sogou, Changyou, and Fox Video Limited (“Sohu Video”) have incentive plans for the granting of share-based awards, including stock options, share options and restricted share units, to members of the boards of directors, management and other key employees. For share-based awards for which a grant date has occurred, share-based compensation expense is recognized as costs and expenses in the consolidated statements of comprehensive income based on the fair value of the related share-based awards on their grant dates. For share-based awards for which the service inception date precedes the grant date, share-based compensation expense is recognized as costs and expenses in the consolidated statements of comprehensive income beginning on the service inception date and is re-measured Sohu (excluding Sohu Video), Sogou, and Changyou Share-based Awards Sohu (excluding Sohu Video) Share-based Awards In determining the fair value of stock options granted by Sohu (excluding Sohu Video) as share-based awards before 2006, the Black-Scholes valuation model was applied. In determining the fair value of restricted share units granted, the public market price of the underlying shares on the grant dates was applied. Options for the purchase of Sohu common stock contractually granted under the Sohu 2010 Stock Incentive Plan are subject to vesting in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and certain subjective performance targets. Under ASC 718-10-25 ASC 718-10-55 re-measured Sogou Share-based Awards In determining the fair value of share options granted by Sogou as share-based awards, the income approach /discounted cash flow method with a discount for lack of marketability was applied, given that the shares underlying the awards were not publicly traded at the time of grant. Certain persons who became Sogou employees when Tencent’s Soso search-related businesses were transferred to Sogou on September 16, 2013 had been granted restricted share units under Tencent’s share award arrangements prior to the transfer of the businesses to Sogou. These Tencent restricted share units will continue to vest under the original Tencent share award arrangements provided the transferred employees continue to be employed by Sogou during the requisite service period. After the transfer of the Soso search-related businesses to Sogou, Sogou applied the guidance in ASC 505-50 Changyou Share-based Awards In determining the fair value of ordinary shares and restricted share units granted by Changyou as share-based awards in 2008, the income approach /discounted cash flow method with a discount for lack of marketability was applied, given that the shares underlying the awards were not publicly traded at the time of grant. In determining the fair value of restricted share units granted in 2009 shortly before Changyou’s initial public offering, the fair value of the underlying shares was determined based on Changyou’s offering price for its initial public offering. In determining the fair value of restricted share units granted after Changyou’s initial public offering, the public market price of the underlying shares on the grant dates was applied. Options for the purchase of Changyou Class A ordinary shares contractually granted under the Changyou 2014 Share Incentive Plan are subject to vesting in four equal installments over a period of four years, with each installment vesting upon satisfaction of a service period requirement and certain subjective performance targets. Under ASC 718-10-25 ASC 718-10-55 re-measured Compensation Expense Recognition For options and restricted share units granted with respect to Sohu (excluding Sohu Video) shares and Changyou shares, compensation expense is recognized on an accelerated basis over the requisite service period. For share options granted with respect to Sogou shares, compensation expense is recognized on a straight-line basis over the estimated period during which the service period requirement and performance target will be met. For Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, compensation expense is recognized by Sogou on an accelerated basis over the requisite service period, and the fair value of the share-based compensation is re-measured Sohu Video Share-based Awards On January 4, 2012, Sohu Video, the holding entity of Sohu’s video division, adopted a 2011 Share Incentive Plan (the “Video 2011 Share Incentive Plan”) which provides for the issuance of up to 25,000,000 ordinary shares of Sohu Video (representing approximately 10% of the outstanding Sohu Video shares on a fully-diluted basis) to management and key employees of the video division and to Sohu management. As of December 31, 2016, grants of options for the purchase of 16,368,200 ordinary shares of Sohu Video had been contractually made, of which options for the purchase of 4,972,800 ordinary shares were vested. For purposes of ASC 718-10-25 ASC 718-10-55 re-measured, re-measure, |
Taxation | Taxation Income Taxes Income taxes are accounted for using an asset and liability approach which requires the recognition of income taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Group’s financial statements or tax returns. Deferred income taxes are determined based on the differences between the accounting basis and the tax basis of assets and liabilities and are measured using the currently enacted tax rates and laws. Deferred tax assets are reduced by a valuation allowance, if based on available evidence, it is considered that it is more likely than not that some portion of or all of the deferred tax assets will not be realized. In making such determination, the Group considers factors including future reversals of existing taxable temporary differences, future profitability, and tax planning strategies. If events were to occur in the future that would allow the Group to realize more of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the deferred tax assets that would increase income for the period when those events occurred. If events were to occur in the future that would require the Group to realize less of its deferred tax assets than the presently recorded net amount, an adjustment would be made to the valuation allowance against deferred tax assets that would decrease income for the period when those events occurred. Significant management judgment is required in determining income tax expense and deferred tax assets and liabilities. The Group’s deferred tax assets relate to net operating losses and temporary differences between accounting basis and tax basis for its China-Based Subsidiaries and VIEs, which are subject to corporate income tax in the PRC under the PRC Corporate Income Tax Law (the “CIT Law”). In November 2015, the FASB issued Accounting Standards Update 2015-17, non-current non-current The Group changed the manner in which it classifies deferred tax assets and liabilities retrospectively from the fourth quarter of 2016 due to the early adoption of Accounting Standards Update 2015-17, re-classified PRC Withholding Tax on Dividends The CIT Law imposes a 10% withholding income tax on dividends distributed by foreign invested enterprises in the PRC to their immediate holding companies outside Mainland China. A lower withholding tax rate may be applied if there is a tax treaty between Mainland China and the jurisdiction of the foreign holding company. A holding company in Hong Kong, for example, will be subject to a 5% withholding tax rate under an arrangement between the PRC and the Hong Kong Special Administrative Region on the “Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital,” if such holding company is considered a non-PRC PRC Value Added Tax Effective September 1, 2012, a pilot program (the “Pilot Program”) for transition from the imposition of PRC business tax (“Business Tax”) to the imposition of value-added tax (“VAT”) was implemented for revenues from certain industries and certain cities. Prior to Pilot Program, the Group was mainly subject to a 5% PRC business tax and related surcharges on revenues in the PRC. PRC business tax and the related surcharges are recognized when the revenue is earned. On May 1, 2016, the transition from the imposition of PRC business tax (“Business Tax”) to the imposition of VAT was expanded to all industries in China, and all of the Sohu Group’s revenues have been subject to VAT since that date. To record VAT payable, the Group adopted the net presentation method, which presents the difference between the output VAT (at a rate of 6%) and the available input VAT amount (at the rate applicable to the supplier). U.S. Corporate Income Tax Sohu.com Inc. is a Delaware corporation that is subject to U.S. corporate income tax on its taxable income at a rate of up to 35%. To the extent that portions of its U.S. taxable income, such as Subpart F income or a dividend, are determined to be from sources outside of the U.S., subject to certain limitations, Sohu.com Inc. may be able to claim foreign tax credits to offset its U.S. income tax liabilities. Any remaining liabilities are accrued in the Company’s consolidated statements of comprehensive income and estimated tax payments are made when required by U.S. law. Uncertain Tax Positions The Sohu Group is subject to various taxes in different jurisdictions, primarily the U.S. and the PRC. Management reviews regularly the adequacy of the provisions for taxes as they relate to the Group’s income and transactions. In order to assess uncertain tax positions, the Group applies a more likely than not threshold and a two-step two-step |
Net Income /(Loss) per Share | Net Income /(Loss) per Share Basic net income / (loss) per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income / (loss) per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares comprise shares issuable upon the exercise or settlement of share-based awards using the treasury stock method. The dilutive effect of share-based awards with performance requirements is not considered before the performance targets are actually met. The computation of diluted net income / (loss) per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect (i.e. an increase in earnings per share amounts or a decrease in loss per share amounts) on net income / (loss) per share. Additionally, for purposes of calculating the numerator of diluted net income / (loss) per share, the net income / (loss) attributable to the Sohu Group is adjusted as follows. The adjustment will not be made if there is an anti-dilutive effect. (1) SogouÂ’s net income /(loss) attributable to Sohu.com Inc. is determined using the percentage that the weighted average number of Sogou shares held by Sohu.com Inc. represents of the weighted average number of Sogou Preferred Shares and Ordinary Shares, shares issuable upon the conversion of convertible preferred shares under the if-converted In the calculation of Sohu.com Inc.Â’s diluted net income / (loss) per share, assuming a dilutive effect, the percentage of Sohu.com Inc.Â’s shareholding in Sogou was calculated by treating convertible preferred shares issued by Sogou as having been converted at the beginning of the period and unvested Sogou share options with the performance targets achieved as well as vested but unexercised Sogou share options as having been exercised during the period. The dilutive effect of share-based awards with a performance requirement was not considered before the performance targets were actually met. Assuming an anti-dilutive effect, all of these Sogou shares and share options are excluded from the calculation of Sohu.com Inc.Â’s diluted income /(loss) per share. As a result, SogouÂ’s net income /(loss) attributable to Sohu.com Inc. on a diluted basis equals the number used for the calculation of Sohu.com Inc.Â’s basic net income /(loss) per share. (2) ChangyouÂ’s net income /(loss) attributable to Sohu.com Inc. is determined using the percentage that the weighted average number of Changyou shares held by Sohu.com Inc. represents of the weighted average number of Changyou ordinary shares and shares issuable upon the exercise or settlement of share-based awards under the treasury stock method, and not by using the percentage held by Sohu.com Inc. of the total economic interest in Changyou, which is used for the calculation of basic net income per share. In the calculation of Sohu.com Inc.Â’s diluted net income/ (loss) per share, assuming a dilutive effect, all of ChangyouÂ’s existing unvested restricted share units and share options, and vested restricted share units and share options that have not yet been settled, are treated as vested and settled by Changyou under the treasury stock method, causing the percentage of the weighted average number of shares held by Sohu.com Inc. in Changyou to decrease. As a result, ChangyouÂ’s net income / (loss) attributable to Sohu.com Inc. on a diluted basis decreased accordingly. Assuming an anti-dilutive effect, all of these Changyou restricted share units and share options are excluded from the calculation of Sohu.com Inc.Â’s diluted net income /(loss) per share. As a result, ChangyouÂ’s net income /(loss) attributable to Sohu.com Inc. on a diluted basis equals the number used for the calculation of Sohu.com Inc.Â’s basic net income /(loss) per share. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is: Level 1 – observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – include other inputs that are directly or indirectly observable in the market place. Level 3 – unobservable inputs which are supported by little or no market activity. The Sohu Group’s financial instruments mainly include cash equivalents, short-term investments, accounts receivable, assets held for sale, prepaid and other current assets, long-term investments (including available-for-sale |
Cash Equivalents | Cash Equivalents The Sohu GroupÂ’s cash equivalents mainly consist of time deposits with original maturities of three months or less, and highly liquid investments that are readily convertible to known amounts of cash. |
Short-term Investments | Short-term Investments For investments in financial instruments with a variable interest rate indexed to the performance of underlying assets, the Sohu Group elected the fair value method at the date of initial recognition and carried these investments subsequently at fair value. Changes in fair values are reflected in the consolidated statements of comprehensive income. |
Accounts Receivable, Net | Accounts Receivable, Net The carrying value of accounts receivable is reduced by an allowance that reflects the Sohu GroupÂ’s best estimate of the amounts that will not be collected. The Group makes estimations of the collectability of accounts receivable. Many factors are considered in estimating the general allowance, including reviewing delinquent accounts receivable, performing an aging analysis and a customer credit analysis, and analyzing historical bad debt records and current economic trends. |
Available-for-Sale Securities | Available-for-Sale Investments in debt securities and equity securities that have readily determinable fair values not classified as trading securities or as held-to-maturity available-for-sale Available-for-sale available-for-sale |
Restricted time deposits | Restricted time deposits Restricted time deposits are valued based on the prevailing interest rates in the market using the discounted cash flow method. |
Foreign exchange forward contracts | Foreign exchange forward contracts Foreign exchange forward contracts are initially recognized on the date a foreign exchange forward contract is entered into and are subsequently measured at fair value. Changyou entered into such foreign exchange forward contracts in compliance with its risk management policy for the purpose of eliminating the negative impact on earnings and equity resulting from fluctuations in the exchange rate between the U.S. dollar and the RMB. The instruments are marked-to-market period-end |
Equity Investments | Equity Investments Investments in entities are recorded as equity investments under long-term investments. For entities over which the Group does not have significant influence, the cost method is applied, as there is no readily determinable fair value; for entities over which the Group can exercise significant influence but does not own a majority equity interest or control, the equity method is applied. For cost method investments, the Group carries the investment at historical cost after the date of investment. For equity method investments, the Group adjusts the carrying amount of an investment and recognizes investment income or loss for the GroupÂ’s share of the earnings or loss of the investee after the date of investment. |
Long-Lived Assets | Long-Lived Assets Long-lived assets consist primarily of fixed assets and intangible assets. Fixed Assets Fixed assets mainly comprise office buildings, computer equipment and hardware, leasehold improvements, office furniture, and vehicles. Fixed assets are recorded at cost less accumulated depreciation with no residual value. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Fixed Assets Estimated Useful Lives (years) Office buildings 36-47 Leasehold improvements Lesser of term of the lease or the estimated useful lives of the assets Vehicles 4-10 Office furniture 5 Computer equipment and hardware 2-5 Expenditure for maintenance and repairs is expensed as incurred. The gain or loss on the disposal of fixed assets is the difference between the net sales proceeds and the lower of the carrying value or fair value less cost to sell the relevant assets and is recognized in operating expenses in the consolidated statements of comprehensive income. Intangible Assets Intangible assets mainly comprise domain names and trademarks, purchased video content, operating rights for licensed games, computer software, cinema advertising slot rights, and developed technologies. Intangible assets are recorded at cost less accumulated amortization with no residual value. Amortization of intangible assets other than purchased video content is computed using the straight-line method over their estimated useful lives. The estimated useful lives of the GroupÂ’s intangible assets are listed below: Intangible Assets Estimated Useful Lives (years) Domain names and trademarks 4-30 Developed technologies 3-10 Computer software 1-5 Purchased video content 4 months to 2 years, or over the applicable licensing period Cinema advertising slot rights over the contract terms Operating rights for licensed games over the contract terms Impairment of Long-lived Assets In accordance with ASC 360-10-35 |
Video Content | Video Content Video content consists primarily of purchased video content and self-developed video content. Purchased video content is recognized as intangible assets. Amortization of purchased video content is computed based on the trend in viewership accumulation. For self-developed video content, production costs incurred in excess of the amount of revenue contracted for are expensed as incurred, instead of being recorded as intangible assets. Sohu Video enters into nonmonetary transactions to exchange online broadcasting rights for purchased video content with other online video broadcasting companies. Under ASC 845 Impairment of Video Content Purchased video content is stated at the lower of cost less accumulated amortization, or net realizable value (“NRV”). In accordance with ASC 920-350-35 |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Sohu GroupÂ’s acquisitions of interests in its subsidiaries and consolidated VIEs. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports in its financial statements provisional amounts for the items for which the accounting is incomplete. If a measurement period adjustment is identified, the Group recognizes the adjustment as part of the acquisition accounting. The Sohu Group increases or decreases the provisional amounts of identifiable assets or liabilities by means of increases or decreases in goodwill for measurement period adjustments. In accordance with ASC 350 ASC 350-20-35 Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The Group estimates fair value using the income approach or market approach. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates, control premium, comparable companiesÂ’ multipliers and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. |
Comprehensive Income | Comprehensive Income Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Accumulated other comprehensive income, as presented on the Sohu GroupÂ’s consolidated balance sheets, includes a cumulative foreign currency translation adjustment and an unrealized gain/(loss) on available-for-sale |
Functional Currency and Foreign Currency Translation | Functional Currency and Foreign Currency Translation An entityÂ’s functional currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily generates and expends cash. ManagementÂ’s judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements. The functional currency of Sohu.com Inc. is the U.S. dollar. The functional currency of the Sohu GroupÂ’s subsidiaries in the U.S., the Cayman Islands, the British Virgin Islands and Hong Kong is the U.S. dollar. The functional currencies of the Sohu GroupÂ’s subsidiaries and VIEs in other countries are the national currencies of those counties, rather than the U.S. dollar. Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are re-measured re-measurement Financial statements of entities with a functional currency other than the U.S. dollar are translated into U.S. dollars, which is the reporting currency. Assets and liabilities are translated at the current exchange rate in effect at the balance sheet date, and revenues and expenses are translated at the average of the exchange rates in effect during the reporting period. ShareholdersÂ’ equity accounts are translated using the historical exchange rates at the date the entry to shareholdersÂ’ equity was recorded, except for the change in retained earnings during the year, which is translated using the historical exchange rates used to translate each periodÂ’s income statement. Differences resulting from translating a foreign currency to the reporting currency are recorded in accumulated other comprehensive income in the consolidated balance sheets. |
Effect of Recent Accounting Pronouncements | Effect of Recent Accounting Pronouncements Revenue from Contracts with Customers. In May 2014, the FASB issued ASU No. 2014-09, ‘‘Revenue from Contracts with Customers (Topic 606).’’ This guidance supersedes current guidance on revenue recognition in Topic 605, ‘‘Revenue Recognition.” In addition, there are disclosure requirements related to the nature, amount, timing, and uncertainty of revenue recognition. In August 2015, the FASB issued ASU No.2015-14 to defer the effective date of ASU No. 2014-09 for all entities by one year. For public business entities that follow U.S. GAAP, the deferral results in the new revenue standard are being effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted for interim and annual periods beginning after December 15, 2016. The Sohu Group will apply the new revenue standard beginning January 1, 2018, and will not early adopt. The Sohu Group has set up an implementation team that is currently in the process of analyzing each of the Sohu Group’s revenue streams in accordance with the new revenue standard to determine the impact on the Group’s consolidated financial statements. The Sohu Group plans to continue the evaluation, analysis, and documentation of its adoption of ASU 2014-09 (including those subsequently issued updates that clarify ASU 2014-09’s provisions) throughout 2017 as the Sohu Group works towards the implementation and finalizes its determination of the impact that the adoption will have on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes Recognition and Measurement of Financial Assets and Financial Liabilities. On January 5, 2016, the FASB issued ASU 2016-01 (“ASU 2016-01”) Leases. On February 25, 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases ASU 2016-02 ASU 2016-02 ASU 2016-02 Compensation – Stock Compensation. On March 30, 2016, the FASB issued ASU 2016-09 (“ASU 2016-09”), Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting Financial Instruments-Credit Losses. (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments. In August 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments, Statement of Cash Flows (Topic 230): Restricted Cash. In November 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash Business Combinations (Topic 805): Clarifying the Definition of a Business. In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-04, “Simplifying the Test for Goodwill Impairment.” |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Estimated useful lives of fixed assets | Fixed Assets Estimated Useful Lives (years) Office buildings 36-47 Leasehold improvements Lesser of term of the lease or the estimated useful lives of the assets Vehicles 4-10 Office furniture 5 Computer equipment and hardware 2-5 |
Estimated useful lives of intangible assets | Intangible Assets Estimated Useful Lives (years) Domain names and trademarks 4-30 Developed technologies 3-10 Computer software 1-5 Purchased video content 4 months to 2 years, or over the applicable licensing period Cinema advertising slot rights over the contract terms Operating rights for licensed games over the contract terms |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information [Abstract] | |
Segment operating information by segment | Year Ended December 31, 2014 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 546,262 $ 386,382 $ 755,266 $ (14,833 ) $ 1,673,077 Segment cost of revenues (320,035 ) (163,426 ) (201,710 ) 1,509 (683,662 ) Segment gross profit 226,227 222,956 553,556 (13,324 ) 989,415 SBC (2) in cost of revenues (728 ) (1,092 ) (152 ) 0 (1,972 ) Gross profit 225,499 221,864 553,404 (13,324 ) 987,443 Operating expenses: Product development (3) (93,227 ) (102,329 ) (193,044 ) 4,297 (384,303 ) Sales and marketing (1) (220,479 ) (73,932 ) (241,202 ) 14,744 (520,869 ) General and administrative (43,640 ) (13,446 ) (104,663 ) (733 ) (162,482 ) Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions 0 0 (52,282 ) 0 (52,282 ) SBC (2) in operating expenses (7,378 ) (62,950 ) (3,962 ) 1,820 (72,470 ) Total operating expenses (364,724 ) (252,657 ) (595,153 ) 20,128 (1,192,406 ) Operating loss (139,225 ) (30,793 ) (41,749 ) 6,804 (204,963 ) Other income (3) 8,369 2,462 4,112 (4,984 ) 9,959 Interest income 8,696 2,773 26,091 0 37,560 Interest expense (131 ) 0 (6,452 ) 0 (6,583 ) Exchange difference (325 ) (149 ) (668 ) 0 (1,142 ) Loss before income tax expense (122,616 ) (25,707 ) (18,666 ) 1,820 (165,169 ) Income tax expense (3,557 ) 0 (2,493 ) 0 (6,050 ) Net loss $ (126,173 ) $ (25,707 ) $ (21,159 ) $ 1,820 $ (171,219 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Year Ended December 31, 2015 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 590,471 $ 591,803 $ 761,636 $ (6,819 ) $ 1,937,091 Segment cost of revenues (393,564 ) (247,949 ) (216,727 ) 924 (857,316 ) Segment gross profit 196,907 343,854 544,909 (5,895 ) 1,079,775 SBC (2) in cost of revenues (1,381 ) (330 ) (37 ) 0 (1,748 ) Gross profit 195,526 343,524 544,872 (5,895 ) 1,078,027 Operating expenses: Product development (3) (94,392 ) (124,210 ) (165,130 ) 4,932 (378,800 ) Sales and marketing (1) (203,332 ) (93,055 ) (91,334 ) 6,845 (380,876 ) General and administrative (57,014 ) (14,422 ) (71,771 ) (656 ) (143,863 ) Goodwill impairment and impairment of intangible assets acquired as part of a business acquisition 0 0 (40,324 ) 0 (40,324 ) SBC (2) in operating expenses (26,743 ) (10,049 ) (14,988 ) 85 (51,695 ) Total operating expenses (381,481 ) (241,736 ) (383,547 ) 11,206 (995,558 ) Operating profit /(loss) (185,955 ) 101,788 161,325 5,311 82,469 Other income (3) (4) 92,455 1,142 64,961 (84,032 ) 74,526 Interest income (5) 7,690 5,332 23,779 (6,158 ) 30,643 Interest expense (5) (5,007 ) 0 (8,335 ) 6,158 (7,184 ) Exchange difference 1,716 667 2,954 0 5,337 Income /(loss) before income tax expense (89,101 ) 108,929 244,684 (78,721 ) 185,791 Income tax expense (13,451 ) (9,430 ) (54,055 ) 0 (76,936 ) Net income /(loss) $ (102,552 ) $ 99,499 $ 190,629 $ (78,721 ) $ 108,855 Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): In the third quarter of 2015, Sogou purchased from Sohu 24.0 million Series A Preferred Shares of Sogou for $78.8 million. Sohu recognized $78.8 million in other income, which was eliminated in the Group’s consolidated statements of comprehensive income. Note (5): The elimination represents interest income/ (expense) resulting from intracompany loans between the Sohu segment and the Changyou segment. Year Ended December 31, 2016 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 468,515 $ 660,408 $ 525,385 $ (3,877 ) $ 1,650,431 Segment cost of revenues (391,417 ) (302,565 ) (165,779 ) 327 (859,434 ) Segment gross profit 77,098 357,843 359,606 (3,550 ) 790,997 SBC (2) in cost of revenues (164 ) (171 ) (31 ) 0 (366 ) Gross profit 76,934 357,672 359,575 (3,550 ) 790,631 Operating expenses: Product development (3) (96,815 ) (132,749 ) (118,738 ) 4,342 (343,960 ) Sales and marketing (1) (259,800 ) (121,303 ) (55,971 ) 4,688 (432,386 ) General and administrative (47,804 ) (19,308 ) (45,642 ) 89 (112,665 ) SBC (2) in operating expenses (1,703 ) (8,680 ) (8,371 ) 0 (18,754 ) Total operating expenses (406,122 ) (282,040 ) (228,722 ) 9,119 (907,765 ) Operating profit /(loss) (329,188 ) 75,632 130,853 5,569 (117,134 ) Other income /(expense) (3) 5,360 (26,027 ) 15,523 (5,569 ) (10,713 ) Interest income (4) 8,879 5,198 21,490 (13,068 ) 22,499 Interest expense (4) (10,103 ) 0 (4,321 ) 13,068 (1,356 ) Exchange difference 2,349 5,346 5,108 0 12,803 Income /(loss) before income tax benefit /(expense) (322,703 ) 60,149 168,653 0 (93,901 ) Income tax benefit /(expense) 538 (27 ) (21,583 ) 0 (21,072 ) Net income /(loss) $ (322,165 ) $ 60,122 $ 147,070 $ 0 $ (114,973 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou and Changyou segments. Note (2): “SBC” stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): The elimination represents interest income/ (expense) resulting from intracompany loans between the Sohu segment and the Changyou segment. |
Segment assets information by segment | As of December 31, 2015 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 430,804 $ 244,484 $ 569,917 $ 0 $ 1,245,205 Accounts receivable, net 176,759 28,986 67,959 (87 ) 273,617 Fixed assets, net 223,939 70,447 214,306 0 508,692 Total assets (1) $ 1,356,263 $ 387,875 $ 1,779,506 $ (481,450 ) $ 3,042,194 Note (1): The elimination for segment assets mainly consists of elimination of intracompany loans between the Sohu segment and the Changyou segment, and elimination of long-term investments in subsidiaries and consolidated VIEs. As of December 31, 2016 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 167,691 $ 286,078 $ 597,188 $ 0 $ 1,050,957 Accounts receivable, net 100,317 41,781 47,150 (81 ) 189,167 Fixed assets, net 196,839 117,022 189,770 0 503,631 Total assets (1) $ 1,241,844 $ 499,589 $ 1,708,037 $ (885,780 ) $ 2,563,690 Note (1): The elimination for segment assets mainly consists of elimination of intracompany loans between the Sohu segment and the Changyou segment, and elimination of long-term investments in subsidiaries and consolidated VIEs. |
Share-based Compensation Expe36
Share-based Compensation Expense (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation Expense [Abstract] | |
Share-based compensation expense recognized in costs and expenses | Year Ended December 31, Share-based compensation expense 2014 2015 2016 Cost of revenues $ 1,973 $ 1,748 $ 366 Product development expenses 24,982 19,344 9,184 Sales and marketing expenses 5,645 3,054 2,394 General and administrative expenses 41,843 29,297 7,176 $ 74,443 $ 53,443 $ 19,120 |
Share-based compensation expense recognized for share awards of Sohu (excluding Sohu Video), Sogou, Changyou and Sohu Video | Year Ended December 31, Share-based compensation expense 2014 2015 2016 For Sohu (excluding Sohu Video) share-based awards $ 4,410 $ 27,811 $ 2,761 For Sogou share-based awards (1) 61,918 10,310 8,802 For Changyou share-based awards 4,087 15,024 8,402 For Sohu Video share-based awards (2) 4,028 298 (845 ) $ 74,443 $ 53,443 $ 19,120 Note (1): Compensation expense for Sogou share-based awards also includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of Sogou Class A Ordinary Shares that Sogou repurchased in the second quarter of 2014. Note (2):The negative amount resulted from re-measured |
Other Income _(Expense),net (Ta
Other Income /(Expense),net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income /(Expense), net [Abstract] | |
Other income /(expense) | Year Ended December 31, 2014 2015 2016 Donations (1) $ (683 ) $ (1,192 ) $ (27,982 ) Investment income/(expense) (2) 2,039 60,264 (1,908 ) Gain from the changes in fair value of financial instruments 3,137 9,374 13,133 Government grant 3,618 2,839 2,112 Change in fair value of China Web put option 2,304 0 0 Others (456 ) 3,241 3,932 $ 9,959 $ 74,526 $ (10,713 ) Note (1): In the second quarter of 2016, the Sohu Group recognized a one-time Note (2): The $60.3 million in investment income in 2015 primarily included a $55.1 million disposal gain recognized by Changyou for its sale of the 7Road business and certain Changyou subsidiaries and a $13.0 million disposal gain recognized by Sohu for its sale of an equity investment, offset by an $8.9 million investment loss from the GroupÂ’s other equity investments. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Components [Abstract] | |
Balance sheet components | As of December 31, 2015 2016 Cash and cash equivalents Cash $ 517,973 $ 424,260 Cash equivalents 727,232 626,697 $ 1,245,205 $ 1,050,957 Accounts receivable, net Accounts receivable: $ 277,593 $ 194,008 Allowance for doubtful accounts: Balance at the beginning of year (4,068 ) (3,976 ) Additional provision for bad debt, net of recoveries (2,175 ) (7,109 ) Write-offs 2,064 5,992 Exchange difference 203 252 Balance at the end of year (3,976 ) (4,841 ) $ 273,617 $ 189,167 Prepaid and other current assets Prepaid content and license $ 57,910 $ 119,810 Prepaid taxes 13,073 30,308 Matching loan due from a related party (See Note 8) 12,740 29,019 Loans to third parties 9,361 25,494 Due from Shenzhen 7Road 20,579 12,509 Prepaid cost of revenue 8,458 10,085 Prepaid rental deposit 10,231 9,817 Receivables from third party payment platforms 3,673 4,027 Employee advances 3,844 4,013 Due from a related party 3,080 0 Interest receivable 1,058 1,595 Prepaid advertising and promotion fees 1,905 1,506 Prepaid office rent and facilities expenses 2,223 1,378 Others 6,082 10,572 $ 154,217 $ 260,133 Prepaid non-current Prepaid PRC income tax for the sale of assets associated with 17173.com by Sohu to Changyou $ 6,067 $ 4,733 Others 187 1 $ 6,254 $ 4,734 Other short-term liabilities Deposit received from membership card buyers $ 88,990 $ 61,708 Matching loan due to a related party (See Note 8) 13,005 28,678 Contract deposits from advertisers 21,367 24,385 Donation payable 0 17,299 Consideration payable for equity investment 5,390 5,280 Early exercise of Sogou share options for trust arrangements 4,530 4,504 Accrued liabilities to suppliers 4,110 3,817 Withholding employee individual income tax for options 2,382 2,382 Accrued Business Tax arising from the sale of assets associated with 17173.com by Sohu to Changyou 1,647 1,625 Government grant 1,694 0 Others 10,902 9,637 $ 154,017 $ 159,315 Receipts in advance and deferred revenue Receipts in advance relating to: – brand advertising business $ 20,498 $ 12,332 – search and search-related business 65,911 59,593 – online game business 20,244 15,225 – others business 0 2,732 Total receipts in advance 106,653 89,882 Deferred revenue 28,732 29,069 $ 135,385 $ 118,951 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Financial instruments, measured at fair value | Fair value measurements at reporting date using Items As of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 727,232 $ 0 $ 727,232 $ 0 Restricted time deposits 363,979 0 363,979 0 Short-term investments 174,515 0 174,515 0 Available-for-sale 14,301 14,301 0 0 Total $ 1,280,027 $ 14,301 $ 1,265,726 $ 0 Fair value measurements at reporting date using Items As of December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 626,697 $ 0 $ 626,697 $ 0 Short-term investments 247,926 0 247,926 0 Available-for-sale 10,381 10,381 0 0 Foreign exchange forward contracts 3,040 0 3,040 0 Restricted time deposits 269 0 269 0 Total $ 888,313 $ 10,381 $ 877,932 $ 0 |
Aggregate assets and liabilities held for sale | As of December 31, Cash and cash equivalents $ 11,684 Prepaid and other current assets 2,469 Goodwill 83,470 Intangible assets 5,456 Assets held for sale $ 103,079 Other liabilities 3,902 Liabilities held for sale $ 3,902 |
Assets measured at fair value on nonrecurring basis | Fair value measurements at reporting date using Items As of December 31, Quoted Prices in Active for Identical (Level 1) Significant Other Observable (Level 2) Significant Unobservable Inputs (Level 3) Total Prepaid and other current assets $ 154,217 $ 0 $ 0 $ 154,217 6,769 Intangible assets, net 55,415 0 0 55,415 19,947 Goodwill 154,219 0 0 154,219 31,445 $ 363,851 $ 0 $ 0 $ 363,851 58,161 Fair value measurements at reporting date using Items As of December 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable (Level 2) Significant Unobservable Inputs (Level 3) Total Prepaid and other current assets $ 260,133 $ 0 $ 0 $ 260,133 19,654 Intangible assets, net 32,131 0 0 32,131 3,252 Goodwill 68,290 0 0 68,290 0 $ 360,554 $ 0 $ 0 $ 360,554 22,906 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fixed Assets [Abstract] | |
Fixed assets, net | As of December 31, 2015 2016 Fixed assets, net Office buildings $ 393,938 $ 368,758 Computer equipment and hardware 302,832 323,592 Leasehold and building improvements 49,703 46,164 Office furniture 10,784 9,789 Vehicles 4,930 3,480 Fixed assets, gross 762,187 751,783 Accumulated depreciation (253,495 ) (248,152 ) $ 508,692 $ 503,631 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Intangible Assets, Net [Abstract] | |
Finite-lived intangible assets by major class | As of December 31, 2015 Items Gross Accumulated Impairment Net Purchased video content $ 226,832 $ (201,405 ) $ (11,129 ) $ 14,298 Domain names and trademarks 35,003 (9,458 ) (11,747 ) 13,798 Operating rights for licensed games 26,869 (9,517 ) (9,474 ) 7,878 Developed technologies 19,352 (3,393 ) (12,334 ) 3,625 Computer software 15,934 (11,173 ) 0 4,761 Cinema advertising slot rights 12,615 (8,721 ) 0 3,894 Others 27,760 (11,174 ) (9,425 ) 7,161 Total $ 364,365 $ (254,841 ) $ (54,109 ) $ 55,415 As of December 31, 2016 Items Gross Accumulated Impairment Net Purchased video content $ 181,100 $ (159,549 ) $ (12,759 ) $ 8,792 Operating rights for licensed games 30,497 (13,178 ) (9,208 ) 8,111 Domain names and trademarks 29,466 (9,872 ) (9,758 ) 9,836 Computer software 16,521 (13,015 ) 0 3,506 Developed technologies 8,818 (1,252 ) (7,369 ) 197 Cinema advertising slot rights 3,199 (2,625 ) 0 574 Others 11,568 (4,398 ) (6,055 ) 1,115 Total $ 281,169 $ (203,889 ) $ (45,149 ) $ 32,131 |
Expected amortization expense | For the year ending December 31, (in thousands) 2017 $ 11,593 2018 9,355 2019 2,633 2020 1,300 2021 1,217 Thereafter 6,033 Total expected amortization expense $ 32,131 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill [Abstract] | |
Carrying value of goodwill by segment | Sohu Sogou Changyou Total Balance as of December 31, 2014 Goodwill $ 73,908 $ 6,309 $ 297,999 $ 378,216 Accumulated impairment losses (35,788 ) 0 (39,002 ) (74,790 ) $ 38,120 $ 6,309 $ 258,997 $ 303,426 Transactions in 2015 Goodwill associated with the acquisition of 7Road de-recognized 0 0 (109,735 ) (109,735 ) Impairment loss related to MoboTap 0 0 (29,569 ) (29,569 ) Goodwill associated with the acquisition of Doyo, transferred to assets held for sale and impaired 0 0 (7,352 ) (7,352 ) Foreign currency translation adjustment (928 ) (364 ) (1,259 ) (2,551 ) Balance as of December 31, 2015 $ 37,192 $ 5,945 $ 111,082 $ 154,219 Balance as of December 31, 2015 Goodwill 72,980 5,945 181,529 260,454 Accumulated impairment losses (35,788 ) 0 (70,447 ) (106,235 ) $ 37,192 $ 5,945 $ 111,082 $ 154,219 Transactions in 2016 Goodwill associated with MoboTap and transferred to assets held for sale 0 0 (83,470 ) (83,470 ) Foreign currency translation adjustment (969 ) (380 ) (1,110 ) (2,459 ) Balance as of December 31, 2016 $ 36,223 $ 5,565 $ 26,502 $ 68,290 Balance as of December 31, 2016 Goodwill 72,011 5,565 96,949 174,525 Accumulated impairment losses (35,788 ) 0 (70,447 ) (106,235 ) $ 36,223 $ 5,565 $ 26,502 $ 68,290 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Taxation [Abstract] | |
Components of income before income taxes | Year ended December 31, 2014 2015 2016 Income /(loss) before income tax expense Income /(loss) from China operations $ (129,349 ) $ 171,636 $ (88,440 ) Income /(loss) from non-China (35,820 ) 14,155 (5,461 ) Total income /(loss) before income tax expense $ (165,169 ) $ 185,791 $ (93,901 ) Income tax expense applicable to China operations Current tax $ 23,295 $ 55,532 $ 13,635 Deferred tax (20,637 ) 8,735 8,500 Subtotal income tax expense applicable to China operations 2,658 64,267 22,135 Non China income tax expense/(benefit) 1,864 11,291 (2,134 ) Non China withholding tax expense 1,528 1,378 1,071 Total income tax expense $ 6,050 $ 76,936 $ 21,072 |
Combined effects of the income tax exemption and reduction available | Year Ended December 31, 2014 2015 2016 Tax holiday effect $ 186 $ 19,626 $ 30,872 Basic net income per share effect — 0.51 0.80 |
Reconciliation between the U.S. federal statutory rate and the Group's effective tax rate | Year Ended December 31, 2014 2015 2016 U.S. federal statutory rate: 35 % 35 % 35 % Effect of tax holidays applicable to the subsidiaries and the consolidated VIEs* 0 % (11 %) 33 % Tax differential from statutory rate applicable to the subsidiaries and the consolidated VIEs (31 %) (13 %) (3 %) Effect of withholding taxes (3 %) 2 % (4 %) Changes in valuation allowance for deferred tax assets (22 %) 31 % (91 %) Others 17 % (3 %) 8 % (4 %) 41 % (22 %) * The reversal of income tax for the preferential income tax that Changyou’s and Sogou’s subsidiaries received as KNSE or Software Enterprise for 2015 was included in the “Effect of tax holidays applicable to the subsidiaries and the consolidated VIEs” in the above table. |
Deferred tax assets and liabilities | As of December 31, 2015 2016 Deferred tax assets: Net operating loss from operations $ 145,964 $ 206,967 Accrued bonus and commissions 21,004 22,069 Intangible assets transfer 1,156 746 Others 2,321 7,525 Total deferred tax assets 170,445 237,307 Less: Valuation allowance (141,951 ) (216,176 ) Net deferred tax assets $ 28,494 $ 21,131 Deferred tax liabilities Withholding tax for Dividend $ (24,884 ) $ (26,002 ) Deferred U.S. tax (12,450 ) (9,175 ) Intangible assets from business acquisitions (1,465 ) (1,273 ) Others (3,616 ) (3,334 ) Total deferred tax liabilities $ (42,415 ) $ (39,784 ) |
Uncertain tax positions | As of December 31, 2014 2015 2016 Beginning balance $ 24,369 $ 24,515 $ 39,244 Decreases related to prior year tax positions 0 0 (6,649 ) Increases related to current year tax positions 146 14,729 87 Ending balance $ 24,515 $ 39,244 $ 32,682 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments related to future payment arrangement | As of December 31, 2017 2018 2019 2020 2021 Thereafter Total Purchase of content and services – video 112,051 39,203 81 0 0 0 151,335 Purchase of cinema advertisement slot rights 63,174 46,971 22,633 5,060 0 0 137,838 Purchase of bandwidth 61,731 3,500 1,171 1,055 308 0 67,765 Operating lease obligations(1) 14,543 10,004 2,751 586 58 10 27,952 Expenditures for operating rights for licensed games with technological feasibility 4,178 15,122 0 0 0 0 19,300 Purchase of content and services – others 7,943 166 73 30 0 0 8,212 Fees for operating rights for licensed games in development 1,271 348 0 0 0 0 1,619 Expenditures for titles in game development 259 1,197 0 0 0 0 1,456 Purchase of fixed assets 1,175 0 0 0 0 0 1,175 Others 4,005 4 0 0 0 0 4,009 Total Payments Required 270,330 116,515 26,709 6,731 366 10 420,661 Note (1): For the years ended December 31, 2016, 2015 and 2014, rental expense included in the operating lease was approximately $23.9 million, $27.9 million, and $34.6 million, respectively. |
VIEs (Tables)
VIEs (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
VIEs [Abstract] | |
Financial information of consolidated VIEs | As of December 31, 2015 2016 ASSETS: Cash and cash equivalents $ 131,270 $ 94,859 Accounts receivable, net 135,925 72,151 Prepaid and other current assets 101,951 86,722 Assets held for sale 0 12,551 Intercompany receivables due from the CompanyÂ’s subsidiaries 140,396 197,438 Total current assets 509,542 463,721 Long-term investments, net 15,960 17,472 Fixed assets, net 7,362 4,372 Intangible assets, net 18,266 14,545 Goodwill 36,351 35,161 Other non-current 12,057 4,052 Total assets $ 599,538 $ 539,323 LIABILITIES: Accounts payable $ 23,757 $ 15,824 Accrued liabilities 79,012 96,695 Receipts in advance and deferred revenue 55,319 44,797 Liabilities held for sale 0 3,232 Other current liabilities 139,577 111,775 Intercompany payables due to the CompanyÂ’s subsidiaries 175,178 129,431 Total current liabilities 472,843 401,754 Long-term accounts payable 2,858 0 Long-term taxes payable 180 13,463 Deferred tax liabilities 1,490 1,273 Intercompany payables due to the CompanyÂ’s subsidiaries 21,717 19,620 Total liabilities $ 499,088 $ 436,110 As of December 31, 2014 2015 2016 Net revenue $ 1,063,655 $ 1,181,354 $ 894,697 Net income /(loss) $ (90,840 ) $ (78,722 ) $ 9,557 Year ended December 31, 2014 2015 2016 Net cash provided by /(used in) operating activities $ 69,171 $ 38,628 $ (17,804 ) Net cash provided by /(used in) investing activities (159,094 ) 55,108 (2,273 ) Net cash provided by financing activities $ 17,742 $ 2,855 $ 0 |
Sohu.com Inc. Shareholders' E46
Sohu.com Inc. Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Sohu.com Inc.'s outstanding shares | Number of Outstanding Shares As of December 31, 2014 2015 2016 Common stock: Balance, beginning of year 38,326 38,507 38,653 Issuance of common stock 181 146 89 Balance, end of year 38,507 38,653 38,742 |
Sohu 2010 Stock Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share option activity | Options Number Of Shares Weighted Weighted Aggregate Outstanding at January 1, 2016 0 $ $ Granted 253 0.001 Exercised (60 ) 0.001 Forfeited or expired 0 Outstanding at December 31, 2016 193 0.001 8.10 6,549 Vested at December 31, 2016 193 0.001 8.10 6,549 Exercisable at December 31, 2016 193 0.001 8.10 6,549 Note (1): The aggregated intrinsic value in the preceding table represents the difference between SohuÂ’s closing stock price of $33.89 on December 31, 2016 and the nominal exercise prices of the stock options. |
Restricted share unit activity | Restricted Share Units Number of Weighted-Average Unvested at January 1, 2016 32 $ 70.24 Granted 11 51.00 Vested (23 ) 62.11 Forfeited (9 ) 63.45 Unvested at December 31, 2016 11 73.32 Expected to vest after December 31, 2016 8 73.32 |
Sogou 2010 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share option activity | Options Number Of Shares Weighted Weighted Outstanding at January 1, 2016 12,209 $ 0.369 Granted 2,337 0.001 Exercised (3,876 ) 0.001 Forfeited or expired (1,219 ) 0.001 Outstanding at December 31, 2016 9,451 0.476 6.31 Vested at December 31, 2016 and expected to vest thereafter 2,251 Exercisable at December 31, 2016 1,900 |
Stock option assumptions | Assumptions Adopted 2014 2015 2016 Average risk-free interest rate 2.62%~3.05% 2.48%~2.77% 1.90%~2.77% Exercise multiple 2~3 2~3 2~3 Expected forfeiture rate (post-vesting) 0%~12% 1%~12% 0%~12% Weighted average expected option life 7 8 7 Volatility rate 49%~54% 47%~51% 43%~50% Dividend yield 0% 0% 0% Fair value 5.85~6.35 3.58 3.18~3.93 |
Sohu Management Sogou Share Option Arrangement [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share option activity | Options Number Of Shares Weighted Weighted Outstanding at January 1, 2016 3,664 $ 0.623 Granted 58 0.625 Exercised (532 ) 0.625 Forfeited or expired 0 Outstanding at December 31, 2016 3,190 0.623 5.78 Vested at December 31, 2016 and expected to vest thereafter 790 Exercisable at December 31, 2016 790 |
Stock option assumptions | Assumptions Adopted 2014 2015 2016 Average risk-free interest rate 2.62%~2.93% 2.67%~3.01% 2.01%~2.15% Exercise multiple 2~3 2~3 2~3 Expected forfeiture rate (Post-vesting) 0%~8% 0% 0% Weighted average expected option life 7 8 6 Volatility rate 52%~54% 50%~53% 43%~47% Dividend yield 0% 0% 0% Fair value 5.23 2.96~7.03 2.56~3.31 |
Changyou's Share-based Awards Granted after IPO [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted share unit activity | Restricted Share Units Number of Units (in thousands) Weighted-Average Fair Value Unvested at January 1, 2016 20 $ 14.25 Granted 0 Vested (10 ) Forfeited 0 Unvested at December 31, 2016 10 14.25 Expected to vest after December 31, 2016 10 14.25 |
Changyou 2014 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share option activity | Options Number Of Shares (in thousands) Weighted Weighted Aggregate Outstanding at January 1, 2016 450 $ 0.01 8.84 $ 5,580 Granted 779 0.01 Exercised (377 ) 0.01 Forfeited or expired 0 Outstanding at December 31, 2016 852 0.01 7.93 9,032 Vested at December 31, 2016 852 0.01 Exercisable at December 31, 2016 852 0.01 Note (1): The aggregated intrinsic value in the preceding table represents the difference between ChangyouÂ’s closing price of $21.22 per ADS, or $10.61 per Class A ordinary share, on December 31, 2016 and the nominal exercise prices of the share options. |
Video 2011 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock option assumptions | Assumptions Adopted Average risk-free interest rate 2.63 % Exercise multiple 2.8 Expected forfeiture rate (post-vesting) 19 % Weighted average expected option life 5.0 Volatility rate 46.8 % Dividend yield 0 Fair value 0.71 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
MoboTap [Member] | |
Business Acquisition [Line Items] | |
Schedule of allocation of consideration of assets acquired and liabilities assumed based on fair values | As of July 31, 2014 Cash consideration $ 90,830 Repurchase option 793 Identifiable intangible assets acquired 27,000 Goodwill 113,040 Other assets 6,714 Put option (298 ) Liabilities assumed (2,995 ) Noncontrolling interest (53,424 ) Total $ 90,830 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling interest in consolidated balance sheets | As of December 31, 2015 2016 Sogou $125,314 $165,584 Changyou 364,416 398,631 Total $489,730 $564,215 |
Noncontrolling interest in consolidated statements of comprehensive income /(loss) | Year Ended December 31, 2014 2015 2016 Sogou $ (14,202 ) $ 101,656 $ 61,403 Changyou (18,873 ) 44,886 47,645 Others 766 0 0 Total $ (32,309 ) $ 146,542 $ 109,048 |
Net Income _(Loss) per Share (T
Net Income /(Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Net Income /(Loss) per Share [Abstract] | |
Calculation of basic and diluted net loss per share | Year Ended December 31, 2014 2015 2016 Numerator: Net loss attributable to Sohu.com Inc., basic (after subtracting the dividend or deemed dividend to noncontrolling Sogou Series A Preferred shareholders) $ (166,657 ) $ (49,598 ) $ (224,021 ) Effect of dilutive securities: Incremental dilution from Sogou (3,919 ) 0 0 Incremental dilution from Changyou 0 (1,231 ) (1,639 ) Net loss attributable to Sohu.com Inc., diluted $ (170,576 ) $ (50,829 ) $ (225,660 ) Denominator: Weighted average basic common shares outstanding 38,468 38,598 38,706 Effect of dilutive securities: Share options and restricted share units 0 0 0 Weighted average diluted common shares outstanding $ 38,468 $ 38,598 $ 38,706 Basic net loss per share attributable to Sohu.com Inc. $ (4.33 ) $ (1.28 ) $ (5.79 ) Diluted net loss per share attributable to Sohu.com Inc. $ (4.43 ) $ (1.32 ) $ (5.83 ) |
Schedule I - Condensed Financ50
Schedule I - Condensed Financial Information of Registrant (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract] | |
Condensed balance sheets | As of December 31, 2015 2016 ASSETS Current assets: Cash and cash equivalents $ 16,096 $ 8,990 Prepaid and other current assets 8,320 6,218 Due from subsidiaries and VIEs 3,806 3,806 Total current assets 28,222 19,014 Interests in subsidiaries and VIEs 1,232,327 989,875 Total assets $ 1,260,549 $ 1,008,889 LIABILITIES AND SHAREHOLDERSÂ’ EQUITY Current liabilities 4,558 4,501 Long-term liabilities 14,969 10,808 Total liabilities 19,527 15,309 ShareholdersÂ’ equity: Common stock: $0.001 par value per share (75,400 shares authorized; 38,653 shares and 38,742 shares, respectively, issued and outstanding as of December 31, 2015 and 2016) 45 45 Additional paid-in 798,357 821,867 Treasury stock (5,889 shares as of both December 31, 2015 and 2016) (143,858 ) (143,858 ) Accumulated other comprehensive income 50,151 3,220 Retained earnings 536,327 312,306 Total shareholdersÂ’ equity 1,241,022 993,580 Total liabilities and shareholdersÂ’ equity $ 1,260,549 $ 1,008,889 |
Condensed statements of comprehensive income/(loss) | Year Ended December 31, 2014 2015 2016 Revenues $ 0 $ 0 $ 0 Cost of revenues 0 0 0 Gross profit 0 0 0 Operating expenses: General and administrative 7,829 22,091 8,845 Operating loss (7,829 ) (22,091 ) (8,845 ) Equity in loss of subsidiaries and VIEs (129,324 ) (4,430 ) (217,408 ) Other expense (28 ) (12 ) (54 ) Interest income 76 95 107 Loss before income tax expense /(benefit) (137,105 ) (26,438 ) (226,200 ) Income tax expense /(benefit) 1,805 11,249 (2,179 ) Net loss (138,910 ) (37,687 ) (224,021 ) Other comprehensive loss (6,903 ) (59,251 ) (46,931 ) Comprehensive loss $ (145,813 ) $ (96,938 ) $ (270,952 ) |
Condensed statements of cash flows | Year Ended December 31, 2014 2015 2016 Cash flows from operating activities: Net loss $ (138,910 ) $ (37,687 ) $ (224,021 ) Adjustments to reconcile net loss to net cash used in operating activities: Investment income from subsidiaries and VIEs 129,324 4,430 217,408 Share-based compensation expense 1,120 15,393 1,309 Changes in current assets and liabilities: Prepaid and other current assets (110 ) (71 ) 842 Taxes payable (510 ) 811 (630 ) Accrued liabilities (3,996 ) 7,905 (2,014 ) Net cash used in operating activities (13,082 ) (9,219 ) (7,106 ) Cash flows from investing activities: Dividend received 0 0 0 Net cash provided by investing activities 0 0 0 Cash flows from financing activities: Issuance of common stock 612 2,126 0 Net cash provided by financing activities 612 2,126 0 Net decrease in cash and cash equivalents (12,470 ) (7,093 ) (7,106 ) Cash and cash equivalents at beginning of year 35,659 23,189 16,096 Cash and cash equivalents at end of year $ 23,189 $ 16,096 $ 8,990 |
Organization and Nature of Op51
Organization and Nature of Operations (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Organization and Nature of Operations [Line Items] | |||
Revenues | $ 1,650,431 | $ 1,937,091 | $ 1,673,077 |
Product Risk [Member] | Online game revenues [Member] | TLBB [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of revenues derived from TLBB | 56.00% | ||
Product Risk [Member] | Total revenues [Member] | TLBB [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of revenues derived from TLBB | 13.00% | ||
Changyou [Member] | MoboTap [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Divestiture of equity interest in MoboTap | 51.00% | ||
Changyou [Member] | TLBB [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Revenues | $ 219,700 | ||
Changyou [Member] | Product Risk [Member] | Online game revenues [Member] | TLBB [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of revenues derived from TLBB | 56.00% | ||
Changyou [Member] | Product Risk [Member] | Total revenues [Member] | TLBB [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of revenues derived from TLBB | 42.00% |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (Noncontrolling Interest Recognition) (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Sogou [Member] | Ordinary Shares and Preferred Shares [Member] | |
Noncontrolling Interest [Line Items] | |
Shares, outstanding | 334,746,495 |
Sogou [Member] | Series A Preferred Shares [Member] | |
Noncontrolling Interest [Line Items] | |
Dividend rate per annum per Preferred Share | $ / shares | $ 0.0375 |
Times over original sales price preferred shareholders entitled to receive in event of liquidation | 1.3 |
Preferred share conversion price | $ / shares | $ 0.625 |
Sogou [Member] | Series A Preferred Shares [Member] | Minimum [Member] | |
Noncontrolling Interest [Line Items] | |
Liquidation Preference Price | $ / shares | 6.847 |
Sogou [Member] | Series A Preferred Shares [Member] | Maximum [Member] | |
Noncontrolling Interest [Line Items] | |
Preferred share conversion price | $ / shares | 0.625 |
Sogou [Member] | Series B Preferred Shares [Member] | |
Noncontrolling Interest [Line Items] | |
Dividend rate per annum per Preferred Share | $ / shares | 0.411 |
Preferred share conversion price | $ / shares | 7.267 |
Sogou [Member] | Series B Preferred Shares [Member] | Maximum [Member] | |
Noncontrolling Interest [Line Items] | |
Preferred share conversion price | $ / shares | $ 7.267 |
Sogou [Member] | Sohu [Member] | |
Noncontrolling Interest [Line Items] | |
Percentage of outstanding equity capital held by parent company | 36.00% |
Sogou [Member] | Sohu [Member] | Minimum [Member] | |
Noncontrolling Interest [Line Items] | |
Voting power held by parent | 50.00% |
Sogou [Member] | Sohu [Member] | Class A Ordinary Shares [Member] | |
Noncontrolling Interest [Line Items] | |
Shares, outstanding | 131,697,750 |
Shares to be purchased by Sohu management and key employees | 4,484,500 |
Sogou [Member] | Photon [Member] | Series A Preferred Shares [Member] | |
Noncontrolling Interest [Line Items] | |
Shares, outstanding | 32,000,000 |
Sogou [Member] | Tencent [Member] | Class A Ordinary Shares [Member] | |
Noncontrolling Interest [Line Items] | |
Shares, outstanding | 6,757,875 |
Sogou [Member] | Tencent [Member] | Series B Preferred Shares [Member] | |
Noncontrolling Interest [Line Items] | |
Shares, outstanding | 65,431,579 |
Sogou [Member] | Tencent [Member] | Non-voting Class B Ordinary Shares [Member] | |
Noncontrolling Interest [Line Items] | |
Shares, outstanding | 79,368,421 |
Sogou [Member] | Various Employees of Sogou and Sohu [Member] | Class A Ordinary Shares [Member] | |
Noncontrolling Interest [Line Items] | |
Shares, outstanding | 19,490,870 |
Changyou [Member] | Sohu [Member] | |
Noncontrolling Interest [Line Items] | |
Percentage of outstanding equity capital held by parent company | 69.00% |
Voting power held by parent | 96.00% |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (Share-based Compensation Expense) (Details) - shares | Jan. 04, 2012 | Dec. 31, 2016 | Jul. 28, 2016 | May 01, 2016 | Jun. 01, 2015 | Feb. 07, 2015 | Jul. 02, 2010 |
Sohu 2010 Stock Incentive Plan [Member] | Ordinary Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized for issuance | 1,500,000 | ||||||
Sohu 2010 Stock Incentive Plan [Member] | Stock Options [Member] | Ordinary Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Installments of share options granted | Four equal installments | ||||||
Award vesting period | 4 years | ||||||
Number of options granted | 13,000 | 1,068,000 | |||||
Sohu (excluding Sohu Video) [Member] | Sohu 2010 Stock Incentive Plan [Member] | Stock Options [Member] | Ordinary Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Installments of share options granted | Four equal installments | ||||||
Award vesting period | 4 years | ||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Stock Options [Member] | Class A Ordinary Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Installments of share options granted | Four equal installments | ||||||
Award vesting period | 4 years | ||||||
Number of options granted | 100,000 | 1,998,000 | |||||
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Ordinary Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized for issuance | 25,000,000 | ||||||
Percentage of outstanding ordinary shares on a fully-diluted basis | 10.00% | ||||||
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Stock Options [Member] | Ordinary Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Installments of share options granted | Four equal installments | ||||||
Number of options granted | 16,368,200 | ||||||
Number of options vested | 4,972,800 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies (Taxation) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Taxation [Line Items] | |||
Withholding tax rate on dividends, foreign invested enterprises to foreign holding companies | 10.00% | ||
Business tax rate | 5.00% | ||
Value-added tax rate | 6.00% | ||
U.S. corporate income tax rate | 35.00% | 35.00% | 35.00% |
HONG KONG | |||
Taxation [Line Items] | |||
Preferential withholding tax rate on dividends, foreign invested enterprises | 5.00% |
Summary of Significant Accoun55
Summary of Significant Accounting Policies (Balance Sheet Elements) (Details) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Summary of Significant Accounting Policies [Abstract] | |
Time deposits, maximum of original maturity | 3 months |
Fixed assets, residual value | $ 0 |
Intangible assets, residual value | $ 0 |
Summary of Significant Accoun56
Summary of Significant Accounting Policies (Estimated Useful Lives of Fixed Assets) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Office buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | 36-47 |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | Lesser of term of the lease or the estimated useful lives of the assets |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | 4-10 |
Office furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | 5 |
Computer equipment and hardware [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives (years) | 2-5 |
Summary of Significant Accoun57
Summary of Significant Accounting Policies (Estimated Useful Lives of Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Domain names and trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (years) | 4-30 |
Developed technologies [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (years) | 3-10 |
Computer software [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (years) | 1-5 |
Purchased video content [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (years) | 4 months to 2 years, or over the applicable licensing period |
Cinema advertising slot rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (years) | over the contract terms |
Operating rights for licensed games [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Lives (years) | over the contract terms |
Summary of Significant Accoun58
Summary of Significant Accounting Policies (Effect of Recent Accounting Pronouncements) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Summary of Significant Accounting Policies [Abstract] | |
Reclassified to noncurrent deferred tax assets | $ 4.7 |
Reclassified to noncurrent deferred tax liabilities | $ 24.9 |
Segment Information (Segment Op
Segment Information (Segment Operating Information by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Operating Segments [Member] | Sohu [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | $ 468,515 | $ 590,471 | $ 546,262 | ||
Segment cost of revenues | (391,417) | (393,564) | (320,035) | |||
Segment gross profit | 77,098 | 196,907 | 226,227 | |||
SBC in cost of revenues | [2] | (164) | (1,381) | (728) | ||
Gross profit | 76,934 | 195,526 | 225,499 | |||
Operating expenses: | ||||||
Product development | [3] | (96,815) | (94,392) | (93,227) | ||
Sales and marketing | [1] | (259,800) | (203,332) | (220,479) | ||
General and administrative | (47,804) | (57,014) | (43,640) | |||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 0 | 0 | ||||
SBC in operating expenses | [2] | (1,703) | (26,743) | (7,378) | ||
Total operating expenses | (406,122) | (381,481) | (364,724) | |||
Operating profit /(loss) | (329,188) | (185,955) | (139,225) | |||
Other income /(expense) | [3] | 5,360 | 92,455 | [4] | 8,369 | |
Interest income | 8,879 | [5] | 7,690 | [5] | 8,696 | |
Interest expense | (10,103) | [5] | (5,007) | [5] | (131) | |
Exchange difference | 2,349 | 1,716 | (325) | |||
Income /(loss) before income tax benefit /(expense) | (322,703) | (89,101) | (122,616) | |||
Income tax benefit /(expense) | 538 | (13,451) | (3,557) | |||
Net income /(loss) | (322,165) | (102,552) | (126,173) | |||
Operating Segments [Member] | Sogou [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | 660,408 | 591,803 | 386,382 | ||
Segment cost of revenues | (302,565) | (247,949) | (163,426) | |||
Segment gross profit | 357,843 | 343,854 | 222,956 | |||
SBC in cost of revenues | [2] | (171) | (330) | (1,092) | ||
Gross profit | 357,672 | 343,524 | 221,864 | |||
Operating expenses: | ||||||
Product development | [3] | (132,749) | (124,210) | (102,329) | ||
Sales and marketing | [1] | (121,303) | (93,055) | (73,932) | ||
General and administrative | (19,308) | (14,422) | (13,446) | |||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 0 | 0 | ||||
SBC in operating expenses | [2] | (8,680) | (10,049) | (62,950) | ||
Total operating expenses | (282,040) | (241,736) | (252,657) | |||
Operating profit /(loss) | 75,632 | 101,788 | (30,793) | |||
Other income /(expense) | [3] | (26,027) | 1,142 | [4] | 2,462 | |
Interest income | 5,198 | [5] | 5,332 | [5] | 2,773 | |
Interest expense | 0 | [5] | 0 | [5] | 0 | |
Exchange difference | 5,346 | 667 | (149) | |||
Income /(loss) before income tax benefit /(expense) | 60,149 | 108,929 | (25,707) | |||
Income tax benefit /(expense) | (27) | (9,430) | 0 | |||
Net income /(loss) | 60,122 | 99,499 | (25,707) | |||
Operating Segments [Member] | Changyou [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | 525,385 | 761,636 | 755,266 | ||
Segment cost of revenues | (165,779) | (216,727) | (201,710) | |||
Segment gross profit | 359,606 | 544,909 | 553,556 | |||
SBC in cost of revenues | [2] | (31) | (37) | (152) | ||
Gross profit | 359,575 | 544,872 | 553,404 | |||
Operating expenses: | ||||||
Product development | [3] | (118,738) | (165,130) | (193,044) | ||
Sales and marketing | [1] | (55,971) | (91,334) | (241,202) | ||
General and administrative | (45,642) | (71,771) | (104,663) | |||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | (40,324) | (52,282) | ||||
SBC in operating expenses | [2] | (8,371) | (14,988) | (3,962) | ||
Total operating expenses | (228,722) | (383,547) | (595,153) | |||
Operating profit /(loss) | 130,853 | 161,325 | (41,749) | |||
Other income /(expense) | [3] | 15,523 | 64,961 | [4] | 4,112 | |
Interest income | 21,490 | [5] | 23,779 | [5] | 26,091 | |
Interest expense | (4,321) | [5] | (8,335) | [5] | (6,452) | |
Exchange difference | 5,108 | 2,954 | (668) | |||
Income /(loss) before income tax benefit /(expense) | 168,653 | 244,684 | (18,666) | |||
Income tax benefit /(expense) | (21,583) | (54,055) | (2,493) | |||
Net income /(loss) | 147,070 | 190,629 | (21,159) | |||
Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | (3,877) | (6,819) | (14,833) | ||
Segment cost of revenues | 327 | 924 | 1,509 | |||
Segment gross profit | (3,550) | (5,895) | (13,324) | |||
SBC in cost of revenues | [2] | 0 | 0 | 0 | ||
Gross profit | (3,550) | (5,895) | (13,324) | |||
Operating expenses: | ||||||
Product development | [3] | 4,342 | 4,932 | 4,297 | ||
Sales and marketing | [1] | 4,688 | 6,845 | 14,744 | ||
General and administrative | 89 | (656) | (733) | |||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 0 | 0 | ||||
SBC in operating expenses | [2] | 0 | 85 | 1,820 | ||
Total operating expenses | 9,119 | 11,206 | 20,128 | |||
Operating profit /(loss) | 5,569 | 5,311 | 6,804 | |||
Other income /(expense) | [3] | (5,569) | (84,032) | [4] | (4,984) | |
Interest income | (13,068) | [5] | (6,158) | [5] | 0 | |
Interest expense | 13,068 | [5] | 6,158 | [5] | 0 | |
Exchange difference | 0 | 0 | 0 | |||
Income /(loss) before income tax benefit /(expense) | 0 | (78,721) | 1,820 | |||
Income tax benefit /(expense) | 0 | 0 | 0 | |||
Net income /(loss) | 0 | (78,721) | 1,820 | |||
Revenues | 1,650,431 | 1,937,091 | 1,673,077 | |||
Segment cost of revenues | (859,434) | (857,316) | (683,662) | |||
Segment gross profit | 790,997 | 1,079,775 | 989,415 | |||
SBC in cost of revenues | [2] | (366) | (1,748) | (1,972) | ||
Gross profit | 790,631 | 1,078,027 | 987,443 | |||
Product development | [3] | (343,960) | (378,800) | (384,303) | ||
Sales and marketing | [1] | (432,386) | (380,876) | (520,869) | ||
General and administrative | (112,665) | (143,863) | (162,482) | |||
Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions | 0 | (40,324) | (52,282) | |||
SBC in operating expenses | [2] | (18,754) | (51,695) | (72,470) | ||
Total operating expenses | (907,765) | (995,558) | (1,192,406) | |||
Operating profit /(loss) | (117,134) | 82,469 | (204,963) | |||
Other income /(expense) | (10,713) | 74,526 | 9,959 | |||
Interest income | 22,499 | 30,643 | 37,560 | |||
Interest expense | (1,356) | (7,184) | (6,583) | |||
Exchange difference | 12,803 | 5,337 | (1,142) | |||
Income /(loss) before income tax benefit /(expense) | (93,901) | 185,791 | (165,169) | |||
Income tax benefit /(expense) | (21,072) | (76,936) | (6,050) | |||
Net income /(loss) | $ (114,973) | $ 108,855 | $ (171,219) | |||
[1] | The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou and Changyou segments. | |||||
[2] | "SBC" stands for share-based compensation expense. | |||||
[3] | The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. | |||||
[4] | In the third quarter of 2015, Sogou purchased from Sohu 24.0 million Series A Preferred Shares of Sogou for $78.8 million. Sohu recognized $78.8 million in other income, which was eliminated in the Group's consolidated statements of comprehensive income. | |||||
[5] | The elimination represents interest income/ (expense) resulting from intracompany loans between the Sohu segment and the Changyou segment. |
Segment Information (Segment As
Segment Information (Segment Assets Information by Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Segments [Member] | Sohu [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | $ 167,691 | $ 430,804 | |||
Accounts receivable, net | 100,317 | 176,759 | |||
Fixed assets, net | 196,839 | 223,939 | |||
Total assets | [1] | 1,241,844 | 1,356,263 | ||
Operating Segments [Member] | Sogou [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | 286,078 | 244,484 | |||
Accounts receivable, net | 41,781 | 28,986 | |||
Fixed assets, net | 117,022 | 70,447 | |||
Total assets | [1] | 499,589 | 387,875 | ||
Operating Segments [Member] | Changyou [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | 597,188 | 569,917 | |||
Accounts receivable, net | 47,150 | 67,959 | |||
Fixed assets, net | 189,770 | 214,306 | |||
Total assets | [1] | 1,708,037 | 1,779,506 | ||
Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | 0 | 0 | |||
Accounts receivable, net | (81) | (87) | |||
Fixed assets, net | 0 | 0 | |||
Total assets | [1] | (885,780) | (481,450) | ||
Cash and cash equivalents | 1,050,957 | 1,245,205 | $ 876,340 | $ 1,287,288 | |
Accounts receivable, net | 189,167 | 273,617 | |||
Fixed assets, net | 503,631 | 508,692 | |||
Total assets | $ 2,563,690 | $ 3,042,194 | |||
[1] | The elimination for segment assets mainly consists of elimination of intracompany loans between the Sohu segment and the Changyou segment, and elimination of long-term investments in subsidiaries and consolidated VIEs. |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - Sogou [Member] - Series A Preferred Shares [Member] - Sohu [Member] shares in Millions, $ in Millions | Sep. 30, 2015USD ($)shares |
Restructuring Cost and Reserve [Line Items] | |
Purchase of Series A Preferred Shares, shares | shares | 24 |
Purchase of Series A Preferred Shares, aggregate purchase price | $ | $ 78.8 |
Share-based Compensation Expe62
Share-based Compensation Expense (Share-based Compensation Expense Recognized in Costs and Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 19,120 | $ 53,443 | $ 74,443 |
Cost of revenues [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 366 | 1,748 | 1,973 |
Product development expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 9,184 | 19,344 | 24,982 |
Sales and marketing expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 2,394 | 3,054 | 5,645 |
General and administrative expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 7,176 | $ 29,297 | $ 41,843 |
Share-based Compensation Expe63
Share-based Compensation Expense (Share-based Compensation Expense Recognized for Share Awards of Sohu(excluding Sohu Video), Sogou, Changyou and Sohu Video) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 19,120,000 | $ 53,443,000 | $ 74,443,000 | |
Capitalized share-based compensation expense | 0 | 0 | 0 | |
Sohu (excluding Sohu Video) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 2,761,000 | 27,811,000 | 4,410,000 | |
Sogou [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | [1] | 8,802,000 | 10,310,000 | 61,918,000 |
Changyou [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 8,402,000 | 15,024,000 | 4,087,000 | |
Sohu Video [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | [2] | $ (845,000) | $ 298,000 | $ 4,028,000 |
[1] | Compensation expense for Sogou share-based awards also includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of Sogou Class A Ordinary Shares that Sogou repurchased in the second quarter of 2014. | |||
[2] | The negative amount resulted from re-measured compensation expense based on the then-current fair value of the awards on each reporting date. |
Advertising and Promotional E64
Advertising and Promotional Expenses, included in Sales and Marketing Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Advertising and Promotional Expenses, included in Sales and Marketing Expenses [Abstract] | |||
Advertising and promotional expenses | $ 270.2 | $ 196.9 | $ 310.7 |
Other Income _(Expense),net (De
Other Income /(Expense),net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Other Income /(Expense), net [Abstract] | ||||
Donations | [1] | $ (27,982) | $ (1,192) | $ (683) |
Investment income/(expense) | [2] | (1,908) | 60,264 | 2,039 |
Gain from the changes in fair value of financial instruments | 13,133 | 9,374 | 3,137 | |
Government grant | 2,112 | 2,839 | 3,618 | |
Change in fair value of China Web put option | 0 | 0 | 2,304 | |
Others | 3,932 | 3,241 | (456) | |
Total | $ (10,713) | $ 74,526 | $ 9,959 | |
[1] | In the second quarter of 2016, the Sohu Group recognized a one-time expense of $27.8 million that was related to a donation by Sogou to Tsinghua University related to setting up a joint research institute focusing on artificial intelligence technology. | |||
[2] | The $60.3 million in investment income in 2015 primarily included a $55.1 million disposal gain recognized by Changyou for its sale of the 7Road business and certain Changyou subsidiaries and a $13.0 million disposal gain recognized by Sohu for its sale of an equity investment, offset by an $8.9 million investment loss from the Group's other equity investments. |
Other Income _(Expense),net (Na
Other Income /(Expense),net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Other Income /(Expense), net [Abstract] | |||||
One-time expense related to donation | $ 27,800 | ||||
Investment income | [1] | $ (1,908) | $ 60,264 | $ 2,039 | |
Disposal gain recognized in business transaction | $ 0 | 55,139 | $ 0 | ||
Disposal gain for sale of an equity investment | 13,000 | ||||
Investment loss from other equity investments | $ 8,900 | ||||
[1] | The $60.3 million in investment income in 2015 primarily included a $55.1 million disposal gain recognized by Changyou for its sale of the 7Road business and certain Changyou subsidiaries and a $13.0 million disposal gain recognized by Sohu for its sale of an equity investment, offset by an $8.9 million investment loss from the Group's other equity investments. |
Balance Sheet Components (Detai
Balance Sheet Components (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash and cash equivalents | ||||
Cash | $ 424,260 | $ 517,973 | ||
Cash equivalents | 626,697 | 727,232 | ||
Cash and cash equivalents | 1,050,957 | 1,245,205 | $ 876,340 | $ 1,287,288 |
Accounts receivable, net | ||||
Accounts receivable: | 194,008 | 277,593 | ||
Allowance for doubtful accounts: | ||||
Balance at the beginning of year | (3,976) | (4,068) | ||
Additional provision for bad debt, net of recoveries | (7,109) | (2,175) | ||
Write-offs | 5,992 | 2,064 | ||
Exchange difference | 252 | 203 | ||
Balance at the end of year | (4,841) | (3,976) | ||
Accounts receivable, net | 189,167 | 273,617 | ||
Prepaid and other current assets | ||||
Prepaid content and license | 119,810 | 57,910 | ||
Prepaid taxes | 30,308 | 13,073 | ||
Matching loan due from a related party | 29,019 | 12,740 | ||
Loans to third parties | 25,494 | 9,361 | ||
Due from Shenzhen 7Road | 12,509 | 20,579 | ||
Prepaid cost of revenue | 10,085 | 8,458 | ||
Prepaid rental deposit | 9,817 | 10,231 | ||
Receivables from third party payment platforms | 4,027 | 3,673 | ||
Employee advances | 4,013 | 3,844 | ||
Interest receivable | 1,595 | 1,058 | ||
Prepaid advertising and promotion fees | 1,506 | 1,905 | ||
Prepaid office rent and facilities expenses | 1,378 | 2,223 | ||
Due from a related party | 0 | 3,080 | ||
Others | 10,572 | 6,082 | ||
Prepaid and other current assets | 260,133 | 154,217 | ||
Prepaid non-current assets | ||||
Prepaid PRC income tax for the sale of assets associated with 17173.com by Sohu to Changyou | 4,733 | 6,067 | ||
Others | 1 | 187 | ||
Prepaid non-current assets | 4,734 | 6,254 | ||
Other short-term liabilities | ||||
Deposit received from membership card buyers | 61,708 | 88,990 | ||
Matching loan due to a related party | 28,678 | 13,005 | ||
Contract deposits from advertisers | 24,385 | 21,367 | ||
Donation payable | 17,299 | 0 | ||
Consideration payable for equity investment | 5,280 | 5,390 | ||
Early exercise of Sogou share options for trust arrangements | 4,504 | 4,530 | ||
Accrued liabilities to suppliers | 3,817 | 4,110 | ||
Withholding employee individual income tax for options | 2,382 | 2,382 | ||
Accrued Business Tax arising from the sale of assets associated with 17173.com by Sohu to Changyou | 1,625 | 1,647 | ||
Government grant | 0 | 1,694 | ||
Others | 9,637 | 10,902 | ||
Other short-term liabilities | 159,315 | 154,017 | ||
Receipts in advance relating to: | ||||
brand advertising business | 12,332 | 20,498 | ||
search and search-related business | 59,593 | 65,911 | ||
online game business | 15,225 | 20,244 | ||
others business | 2,732 | 0 | ||
Total receipts in advance | 89,882 | 106,653 | ||
Deferred revenue | 29,069 | 28,732 | ||
Receipts in advance and deferred revenue | $ 118,951 | $ 135,385 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands, ¥ in Millions, HKD in Millions | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015HKD | Dec. 31, 2015CNY (Â¥) | |
Related Party Transaction [Line Items] | |||||||
Brand advertising revenue from a related party | $ 862 | $ 0 | $ 0 | ||||
Sales and marketing expense for a related party | 216 | 0 | $ 0 | ||||
SoEasy [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Brand advertising revenue from a related party | 900 | ||||||
Sales and marketing expense for a related party | 200 | ||||||
Changyou [Member] | SoEasy [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Loans drew down from related party | $ 29,900 | ||||||
Loans granted to related party | $ 30,200 | ||||||
Loans repaid to related parities | $ 12,900 | ||||||
Loans received from related parities | $ 12,100 | ||||||
Loans payable to related parities | 28,100 | ||||||
Loans receivable from related parities | 28,100 | ||||||
Interest expense incurred | 700 | 100 | |||||
Interest income earned | 1,200 | 400 | |||||
Interest expense payable to related parities | 600 | ||||||
Interest income receivable from related parities | $ 900 | ||||||
Aggregate principal amount of loans drew down from related parties | 12,900 | HKD 100 | |||||
SoEasy [Member] | Changyou [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Aggregate principal amount of loans drew down from related parties | $ 12,300 | ¥ 80 |
Intracompany Loan and Share P69
Intracompany Loan and Share Pledge Agreement (Details) - Sohu Media [Member] - AmazGame [Member] - Loan Agreement [Member] $ in Thousands, ¥ in Millions | 1 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (Â¥) | Oct. 24, 2016USD ($) | Oct. 24, 2016CNY (Â¥) | |
Intracompany Loan and Share Pledge Agreement [Line Items] | ||||
Maximum amount of loan Sohu Media can borrow from AmazGame | $ 148,640 | ¥ 1,000 | ||
Annual interest rate | 6.00% | 6.00% | ||
Loans received from related parties | $ 72,100 | ¥ 500 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments, Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 247,900 | $ 174,500 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 626,697 | 727,232 |
Restricted time deposits | 269 | 363,979 |
Short-term investments | 247,926 | 174,515 |
Available-for-sale equity securities | 10,381 | 14,301 |
Foreign exchange forward contracts | 3,040 | |
Total | 888,313 | 1,280,027 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Restricted time deposits | 0 | 0 |
Short-term investments | 0 | 0 |
Available-for-sale equity securities | 10,381 | 14,301 |
Foreign exchange forward contracts | 0 | |
Total | 10,381 | 14,301 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 626,697 | 727,232 |
Restricted time deposits | 269 | 363,979 |
Short-term investments | 247,926 | 174,515 |
Available-for-sale equity securities | 0 | 0 |
Foreign exchange forward contracts | 3,040 | |
Total | 877,932 | 1,265,726 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Restricted time deposits | 0 | 0 |
Short-term investments | 0 | 0 |
Available-for-sale equity securities | 0 | 0 |
Foreign exchange forward contracts | 0 | |
Total | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Feb. 29, 2016 | Sep. 30, 2015 | Apr. 30, 2015 | Aug. 31, 2014 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Aug. 12, 2014 | Feb. 28, 2013 | |
Short-term Investments [Abstract] | |||||||||||||
Investments in financial instruments | $ 247,900,000 | $ 247,900,000 | $ 247,900,000 | $ 174,500,000 | |||||||||
Change in fair value of short-term investments | 10,100,000 | 9,400,000 | $ 3,100,000 | ||||||||||
Assets and Liabilities Held for Sale [Abstract] | |||||||||||||
Impairment recognized in consolidated statements of comprehensive income | (29,569,000) | ||||||||||||
Foreign Exchange Forward Contracts [Abstract] | |||||||||||||
Gain from changes in fair value of foreign exchange forward contracts | 3,000,000 | ||||||||||||
Restricted Time Deposits [Abstract] | |||||||||||||
Restricted time deposits, collateral for credit facilities | $ 9,000,000 | ||||||||||||
Amount of released restricted time deposits securing credit facilities | 9,000,000 | ||||||||||||
Total amount of repaid bank loans | 344,500,000 | 25,500,000 | 410,194,000 | ||||||||||
Long-term Investment [Abstract] | |||||||||||||
Investment amount | 74,273,000 | 74,273,000 | 74,273,000 | 62,093,000 | |||||||||
Long-term Investment in SoEasy [Member] | |||||||||||||
Long-term Investment [Abstract] | |||||||||||||
Investment amount in period | $ 10,500,000 | $ 16,100,000 | $ 4,800,000 | ||||||||||
Investment amount | 25,000,000 | 25,000,000 | 25,000,000 | ||||||||||
MoboTap [Member] | |||||||||||||
Assets and Liabilities Held for Sale [Abstract] | |||||||||||||
Impairment recognized in consolidated statements of comprehensive income | 0 | ||||||||||||
Changyou [Member] | |||||||||||||
Foreign Exchange Forward Contracts [Abstract] | |||||||||||||
Notional amount of foreign exchange forward contracts | $ 100,000,000 | ||||||||||||
Cash collateral or settlement under foreign exchange forward contracts | 0 | 0 | 0 | ||||||||||
Restricted Time Deposits [Abstract] | |||||||||||||
Total amount of repaid bank loans | $ 344,500,000 | ||||||||||||
Amount of released restricted time deposits securing bank loans | $ 354,700,000 | ||||||||||||
Interest income from restricted time deposits securing loans | 500,000 | 12,800,000 | 16,300,000 | ||||||||||
Interest expense on bank loans | $ 600,000 | $ 7,100,000 | $ 6,400,000 | ||||||||||
Changyou [Member] | MoboTap [Member] | |||||||||||||
Assets and Liabilities Held for Sale [Abstract] | |||||||||||||
Disposal of equity interest in MoboTap | 51.00% | ||||||||||||
Sogou [Member] | Long-term Investment in Zhihu [Member] | |||||||||||||
Long-term Investment [Abstract] | |||||||||||||
Investment amount in period | 5,000,000 | $ 12,000,000 | |||||||||||
Shares of Keyeast [Member] | |||||||||||||
Available-for-Sale Equity Securities [Abstract] | |||||||||||||
Percentage of total outstanding common shares acquired classified as available-for-sale equity securities | 6.00% | ||||||||||||
Purchase price of available-for-sale equity securities | $ 15,100,000 | ||||||||||||
Fair value of available-for-sale equity securities | $ 10,400,000 | $ 10,400,000 | $ 10,400,000 | ||||||||||
Unrealized loss representing change in fair value | $ 4,700,000 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Held for Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Measurements [Abstract] | ||
Cash and cash equivalents | $ 11,684 | |
Prepaid and other current assets | 2,469 | |
Goodwill | 83,470 | |
Intangible assets | 5,456 | |
Assets held for sale | 103,079 | $ 0 |
Other liabilities | 3,902 | |
Liabilities held for sale | $ 3,902 | $ 0 |
Fair Value Measurements (Asse73
Fair Value Measurements (Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepaid and other current assets | $ 260,133 | $ 154,217 |
Intangible assets impairment losses | 19,900 | |
Total asset impairment losses | 22,900 | |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepaid and other current assets | 260,133 | 154,217 |
Prepaid and other current assets impairment losses | 19,654 | 6,769 |
Intangible assets, net | 32,131 | 55,415 |
Intangible assets impairment losses | 3,252 | 19,947 |
Goodwill | 68,290 | 154,219 |
Goodwill impairment losses | 0 | 31,445 |
Total | 360,554 | 363,851 |
Total asset impairment losses | 22,906 | 58,161 |
Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepaid and other current assets | 0 | 0 |
Intangible assets, net | 0 | 0 |
Goodwill | 0 | 0 |
Total | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepaid and other current assets | 0 | 0 |
Intangible assets, net | 0 | 0 |
Goodwill | 0 | 0 |
Total | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepaid and other current assets | 260,133 | 154,217 |
Intangible assets, net | 32,131 | 55,415 |
Goodwill | 68,290 | 154,219 |
Total | $ 360,554 | $ 363,851 |
Fixed Assets (Fixed Assets by M
Fixed Assets (Fixed Assets by Major Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fixed assets, net | ||
Office buildings | $ 368,758 | $ 393,938 |
Computer equipment and hardware | 323,592 | 302,832 |
Leasehold and building improvements | 46,164 | 49,703 |
Office furniture | 9,789 | 10,784 |
Vehicles | 3,480 | 4,930 |
Fixed assets, gross | 751,783 | 762,187 |
Accumulated depreciation | (248,152) | (253,495) |
Fixed assets, net | $ 503,631 | $ 508,692 |
Fixed Assets (Narrative) (Detai
Fixed Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fixed Assets [Abstract] | |||
Depreciation expenses for fixed assets | $ 73,449 | $ 77,421 | $ 78,417 |
Intangible Assets, Net (Finite-
Intangible Assets, Net (Finite-lived Intangible Assets by Major Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 281,169 | $ 364,365 |
Accumulated amortization | (203,889) | (254,841) |
Impairment | (45,149) | (54,109) |
Net carrying amount | 32,131 | 55,415 |
Purchased video content [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 181,100 | 226,832 |
Accumulated amortization | (159,549) | (201,405) |
Impairment | (12,759) | (11,129) |
Net carrying amount | 8,792 | 14,298 |
Domain names and trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 29,466 | 35,003 |
Accumulated amortization | (9,872) | (9,458) |
Impairment | (9,758) | (11,747) |
Net carrying amount | 9,836 | 13,798 |
Operating rights for licensed games [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 30,497 | 26,869 |
Accumulated amortization | (13,178) | (9,517) |
Impairment | (9,208) | (9,474) |
Net carrying amount | 8,111 | 7,878 |
Developed technologies [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 8,818 | 19,352 |
Accumulated amortization | (1,252) | (3,393) |
Impairment | (7,369) | (12,334) |
Net carrying amount | 197 | 3,625 |
Computer software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 16,521 | 15,934 |
Accumulated amortization | (13,015) | (11,173) |
Impairment | 0 | 0 |
Net carrying amount | 3,506 | 4,761 |
Cinema advertising slot rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 3,199 | 12,615 |
Accumulated amortization | (2,625) | (8,721) |
Impairment | 0 | 0 |
Net carrying amount | 574 | 3,894 |
Others [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 11,568 | 27,760 |
Accumulated amortization | (4,398) | (11,174) |
Impairment | (6,055) | (9,425) |
Net carrying amount | $ 1,115 | $ 7,161 |
Intangible Assets, Net (Narrati
Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total losses for impairment | $ 22.9 | ||
Intangible assets impairment losses | $ 19.9 | ||
Amortization of intangible assets | 131.2 | 161.1 | $ 77.7 |
Sohu Video's intangible assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total losses for impairment | 18.6 | ||
Intangible assets impairment losses | 2.9 | ||
Prepaid and other current assets impairment losses | $ 15.7 | ||
MoboTap's intangible assets [Member] | Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets impairment losses | $ 8.9 | ||
Changyou's intangible assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets impairment losses | 20.2 | ||
RaidCall's intangible assets [Member] | Goodwill impairment and impairment of intangible assets acquired as part of business acquisitions [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets impairment losses | $ 15.3 |
Intangible Assets, Net (Estimat
Intangible Assets, Net (Estimated Amortization Expenses for Future Periods) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Intangible Assets, Net [Abstract] | ||
2,017 | $ 11,593 | |
2,018 | 9,355 | |
2,019 | 2,633 | |
2,020 | 1,300 | |
2,021 | 1,217 | |
Thereafter | 6,033 | |
Total expected amortization expense | $ 32,131 | $ 55,415 |
Goodwill (Carrying Value of Goo
Goodwill (Carrying Value of Goodwill by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 260,454 | $ 378,216 |
Accumulated impairment losses, Beginning Balance | (106,235) | (74,790) |
Goodwill, Net, Beginning Balance | 154,219 | 303,426 |
Transactions in Period [Abstract] | ||
Goodwill associated with the acquisition of 7Road de-recognized upon the sale of the 7Road business | (109,735) | |
Impairment loss related to MoboTap | (29,569) | |
Goodwill associated with the acquisition of Doyo, transferred to assets held for sale and impaired | (7,352) | |
Goodwill associated with MoboTap and transferred to assets held for sale | (83,470) | |
Foreign currency translation adjustment | (2,459) | (2,551) |
Goodwill, Ending Balance | 174,525 | 260,454 |
Accumulated impairment losses, Ending Balance | (106,235) | (106,235) |
Goodwill, Net, Ending Balance | 68,290 | 154,219 |
Operating Segments [Member] | Sohu [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 72,980 | 73,908 |
Accumulated impairment losses, Beginning Balance | (35,788) | (35,788) |
Goodwill, Net, Beginning Balance | 37,192 | 38,120 |
Transactions in Period [Abstract] | ||
Goodwill associated with the acquisition of 7Road de-recognized upon the sale of the 7Road business | 0 | |
Impairment loss related to MoboTap | 0 | |
Goodwill associated with the acquisition of Doyo, transferred to assets held for sale and impaired | 0 | |
Goodwill associated with MoboTap and transferred to assets held for sale | 0 | |
Foreign currency translation adjustment | (969) | (928) |
Goodwill, Ending Balance | 72,011 | 72,980 |
Accumulated impairment losses, Ending Balance | (35,788) | (35,788) |
Goodwill, Net, Ending Balance | 36,223 | 37,192 |
Operating Segments [Member] | Sogou [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 5,945 | 6,309 |
Accumulated impairment losses, Beginning Balance | 0 | 0 |
Goodwill, Net, Beginning Balance | 5,945 | 6,309 |
Transactions in Period [Abstract] | ||
Goodwill associated with the acquisition of 7Road de-recognized upon the sale of the 7Road business | 0 | |
Impairment loss related to MoboTap | 0 | |
Goodwill associated with the acquisition of Doyo, transferred to assets held for sale and impaired | 0 | |
Goodwill associated with MoboTap and transferred to assets held for sale | 0 | |
Foreign currency translation adjustment | (380) | (364) |
Goodwill, Ending Balance | 5,565 | 5,945 |
Accumulated impairment losses, Ending Balance | 0 | 0 |
Goodwill, Net, Ending Balance | 5,565 | 5,945 |
Operating Segments [Member] | Changyou [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 181,529 | 297,999 |
Accumulated impairment losses, Beginning Balance | (70,447) | (39,002) |
Goodwill, Net, Beginning Balance | 111,082 | 258,997 |
Transactions in Period [Abstract] | ||
Goodwill associated with the acquisition of 7Road de-recognized upon the sale of the 7Road business | (109,735) | |
Impairment loss related to MoboTap | (29,569) | |
Goodwill associated with the acquisition of Doyo, transferred to assets held for sale and impaired | (7,352) | |
Goodwill associated with MoboTap and transferred to assets held for sale | (83,470) | |
Foreign currency translation adjustment | (1,110) | (1,259) |
Goodwill, Ending Balance | 96,949 | 181,529 |
Accumulated impairment losses, Ending Balance | (70,447) | (70,447) |
Goodwill, Net, Ending Balance | $ 26,502 | $ 111,082 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)ReportingUnits | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Sohu [Member] | |||
Goodwill [Line Items] | |||
Number of reporting units | ReportingUnits | 2 | ||
Sogou [Member] | |||
Goodwill [Line Items] | |||
Number of reporting units | ReportingUnits | 1 | ||
Changyou [Member] | |||
Goodwill [Line Items] | |||
Number of reporting units | ReportingUnits | 5 | ||
Goodwill impairment losses | $ 33.8 | ||
Changyou [Member] | Doyo [Member] | |||
Goodwill [Line Items] | |||
Goodwill impairment losses | $ 1.9 | ||
Changyou [Member] | MoboTap [Member] | |||
Goodwill [Line Items] | |||
Disposal of equity interest in MoboTap | 51.00% | ||
Reclassification of goodwill to assets held for sale | $ 83.5 | ||
Goodwill impairment losses | $ 29.6 |
Taxation (Components of Income
Taxation (Components of Income before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income /(loss) before income tax expense | |||
Income /(loss) from China operations | $ (88,440) | $ 171,636 | $ (129,349) |
Income /(loss) from non-China operations | (5,461) | 14,155 | (35,820) |
Total income /(loss) before income tax expense | (93,901) | 185,791 | (165,169) |
Income tax expense applicable to China operations | |||
Current tax | 13,635 | 55,532 | 23,295 |
Deferred tax | 8,500 | 8,735 | (20,637) |
Subtotal income tax expense applicable to China operations | 22,135 | 64,267 | 2,658 |
Non China income tax expense/(benefit) | (2,134) | 11,291 | 1,864 |
Non China withholding tax expense | 1,071 | 1,378 | 1,528 |
Total income tax expense | $ 21,072 | 76,936 | $ 6,050 |
Reversal amount for disposal of an equity investment | $ 5,000 |
Taxation (Tax Holiday Effect) (
Taxation (Tax Holiday Effect) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Taxation [Abstract] | |||
Tax holiday effect | $ 30,872 | $ 19,626 | $ 186 |
Basic net income per share effect | $ 0.80 | $ 0.51 |
Taxation (Effective Tax Rate) (
Taxation (Effective Tax Rate) (Details) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Taxation [Abstract] | ||||
U.S. federal statutory rate: | 35.00% | 35.00% | 35.00% | |
Effect of tax holidays applicable to the subsidiaries and the consolidated VIEs | [1] | 33.00% | (11.00%) | (0.00%) |
Tax differential from statutory rate applicable to the subsidiaries and the consolidated VIEs | (3.00%) | (13.00%) | (31.00%) | |
Effect of withholding taxes | (4.00%) | 2.00% | (3.00%) | |
Changes in valuation allowance for deferred tax assets | (91.00%) | 31.00% | (22.00%) | |
Others | 8.00% | (3.00%) | 17.00% | |
Effective Tax Rate | (22.00%) | 41.00% | (4.00%) | |
[1] | The reversal of income tax for the preferential income tax that Changyou's and Sogou's subsidiaries received as KNSE or Software Enterprise for 2015 was included in the "Effect of tax holidays applicable to the subsidiaries and the consolidated VIEs" in the above table. |
Taxation (PRC Corporate Income
Taxation (PRC Corporate Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax and Tax Rate [Line Items] | ||||
Unified income tax rate | 25.00% | |||
Reversal amount of income tax for the preferential income tax | $ 30,872 | $ 19,626 | $ 186 | |
High and New Technology Enterprises [Member] | ||||
Income Tax and Tax Rate [Line Items] | ||||
Preferential income tax rate | 15.00% | |||
Preferential income tax rate period (years) | 3 years | |||
Software Enterprise [Member] | ||||
Income Tax and Tax Rate [Line Items] | ||||
Preferential income tax rate | 12.50% | |||
Preferential income tax rate period (years) | 3 years | |||
Income tax exemption period beginning with first profitable year | 2 years | |||
Tax rate reduction rate | 50.00% | |||
Software Enterprise [Member] | Sohu New Momentum [Member] | ||||
Income Tax and Tax Rate [Line Items] | ||||
Preferential income tax rate | 12.50% | |||
Preferential income tax rate period (years) | 3 years | |||
Tax rate reduction rate | 50.00% | |||
Software Enterprise [Member] | Sogou Network [Member] | ||||
Income Tax and Tax Rate [Line Items] | ||||
Preferential income tax rate | 12.50% | |||
Software Enterprise [Member] | Gamespace [Member] | ||||
Income Tax and Tax Rate [Line Items] | ||||
Preferential income tax rate | 12.50% | |||
Preferential income tax rate period (years) | 3 years | |||
Tax rate reduction rate | 50.00% | |||
Key National Software Enterprise [Member] | ||||
Income Tax and Tax Rate [Line Items] | ||||
Preferential income tax rate | 10.00% | |||
Key National Software Enterprise [Member] | Sogou Technology [Member] | ||||
Income Tax and Tax Rate [Line Items] | ||||
Preferential income tax rate | 10.00% | |||
Reversal amount of income tax for the preferential income tax | $ 3,800 | |||
Key National Software Enterprise [Member] | AmazGame [Member] | ||||
Income Tax and Tax Rate [Line Items] | ||||
Preferential income tax rate | 10.00% | 10.00% | 10.00% | |
Reversal amount of income tax for the preferential income tax | $ 10,600 |
Taxation (PRC Withholding Tax o
Taxation (PRC Withholding Tax on Dividends) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Withholding tax on dividends [Line Items] | ||
Withholding income tax rate on dividends, foreign invested enterprises to foreign holding companies | 10.00% | |
Deferred tax liabilities related to withholding tax | $ 26,002 | $ 24,884 |
Changyou [Member] | ||
Withholding tax on dividends [Line Items] | ||
Deferred tax liabilities related to withholding tax | $ 26,000 | |
HONG KONG | ||
Withholding tax on dividends [Line Items] | ||
Preferential withholding tax rate on dividends, foreign invested enterprises | 5.00% |
Taxation (PRC Value-Added Tax)
Taxation (PRC Value-Added Tax) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Taxation [Abstract] | |
Business tax rate | 5.00% |
Value-added tax rate | 6.00% |
Taxation (U.S. Corporate Income
Taxation (U.S. Corporate Income Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Taxation [Abstract] | |||
U.S. corporate income tax rate | 35.00% | 35.00% | 35.00% |
Cumulative undistributed earnings | $ 396.7 | $ 614.1 | |
Estimated U.S. income and foreign withholding taxes due if earnings remitted as dividends | $ 138.8 | $ 214.9 |
Taxation (Deferred Tax Assets a
Taxation (Deferred Tax Assets and Liabilities, Significant Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Net operating loss from operations | $ 206,967 | $ 145,964 |
Accrued bonus and commissions | 22,069 | 21,004 |
Intangible assets transfer | 746 | 1,156 |
Others | 7,525 | 2,321 |
Total deferred tax assets | 237,307 | 170,445 |
Less: Valuation allowance | (216,176) | (141,951) |
Net deferred tax assets | 21,131 | 28,494 |
Deferred tax liabilities | ||
Withholding tax for Dividend | (26,002) | (24,884) |
Deferred U.S. tax | (9,175) | (12,450) |
Intangible assets from business acquisitions | (1,273) | (1,465) |
Others | (3,334) | (3,616) |
Total deferred tax liabilities | $ (39,784) | $ (42,415) |
Taxation (Deferred Tax Assets89
Taxation (Deferred Tax Assets and Liabilities, Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Taxation [Abstract] | ||
Reclassified to noncurrent deferred tax assets | $ 4.7 | |
Reclassified to noncurrent deferred tax liabilities | $ 24.9 | |
Net operating losses from PRC entities available to offset against future net profit for income tax purposes | $ 760.6 | |
Deferred tax assets generated from net operating losses offset by valuation allowance | 190.1 | |
PRC net operating losses generated from previous years, expired | $ 11.8 |
Taxation (Uncertain Tax Positio
Taxation (Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Taxation [Abstract] | |||
Beginning balance | $ 39,244 | $ 24,515 | $ 24,369 |
Decreases related to prior year tax positions | (6,649) | 0 | 0 |
Increases related to current year tax positions | 87 | 14,729 | 146 |
Ending balance | $ 32,682 | $ 39,244 | $ 24,515 |
Taxation (Uncertain Tax Posit91
Taxation (Uncertain Tax Positions, Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Taxation [Abstract] | ||
Payment to PRC tax authorities for a portion of an uncertain tax position | $ 5.3 | |
Recognized tax payable | $ 14.6 |
Commitments and Contingencies92
Commitments and Contingencies (Contractual Obligation) (Details) $ in Thousands | Dec. 31, 2016USD ($) | |
Contractual Obligation [Line Items] | ||
2,017 | $ 270,330 | |
2,018 | 116,515 | |
2,019 | 26,709 | |
2,020 | 6,731 | |
2,021 | 366 | |
Thereafter | 10 | |
Total Payments Required | 420,661 | |
Purchase of content and services - video [Member] | ||
Contractual Obligation [Line Items] | ||
2,017 | 112,051 | |
2,018 | 39,203 | |
2,019 | 81 | |
2,020 | 0 | |
2,021 | 0 | |
Thereafter | 0 | |
Total Payments Required | 151,335 | |
Purchase of cinema advertisement slot rights [Member] | ||
Contractual Obligation [Line Items] | ||
2,017 | 63,174 | |
2,018 | 46,971 | |
2,019 | 22,633 | |
2,020 | 5,060 | |
2,021 | 0 | |
Thereafter | 0 | |
Total Payments Required | 137,838 | |
Purchase of bandwidth [Member] | ||
Contractual Obligation [Line Items] | ||
2,017 | 61,731 | |
2,018 | 3,500 | |
2,019 | 1,171 | |
2,020 | 1,055 | |
2,021 | 308 | |
Thereafter | 0 | |
Total Payments Required | 67,765 | |
Operating lease obligations [Member] | ||
Contractual Obligation [Line Items] | ||
2,017 | 14,543 | [1] |
2,018 | 10,004 | [1] |
2,019 | 2,751 | [1] |
2,020 | 586 | [1] |
2,021 | 58 | [1] |
Thereafter | 10 | [1] |
Total Payments Required | 27,952 | [1] |
Expenditures for operating rights for licensed games with technological feasibility [Member] | ||
Contractual Obligation [Line Items] | ||
2,017 | 4,178 | |
2,018 | 15,122 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
Thereafter | 0 | |
Total Payments Required | 19,300 | |
Purchase of content and services -others [Member] | ||
Contractual Obligation [Line Items] | ||
2,017 | 7,943 | |
2,018 | 166 | |
2,019 | 73 | |
2,020 | 30 | |
2,021 | 0 | |
Thereafter | 0 | |
Total Payments Required | 8,212 | |
Fees for operating rights for licensed games in development [Member] | ||
Contractual Obligation [Line Items] | ||
2,017 | 1,271 | |
2,018 | 348 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
Thereafter | 0 | |
Total Payments Required | 1,619 | |
Expenditures for titles in game development [Member] | ||
Contractual Obligation [Line Items] | ||
2,017 | 259 | |
2,018 | 1,197 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
Thereafter | 0 | |
Total Payments Required | 1,456 | |
Purchase of fixed assets [Member] | ||
Contractual Obligation [Line Items] | ||
2,017 | 1,175 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
Thereafter | 0 | |
Total Payments Required | 1,175 | |
Others [Member] | ||
Contractual Obligation [Line Items] | ||
2,017 | 4,005 | |
2,018 | 4 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
Thereafter | 0 | |
Total Payments Required | $ 4,009 | |
[1] | For the years ended December 31, 2016, 2015 and 2014, rental expense included in the operating lease was approximately $23.9 million, $27.9 million, and $34.6 million, respectively. |
Commitments and Contingencies93
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies [Abstract] | |||
Rental expense included in operating lease | $ 23.9 | $ 27.9 | $ 34.6 |
VIEs (VIEs Consolidated within
VIEs (VIEs Consolidated within Sohu Group, Basic Information for Principal VIEs) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Oct. 31, 2016 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | ||
Aggregate amount of loans due from related parties | $ 9.4 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital and PRC statutory reserves | 60 | |
High Century [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 4.6 | |
High Century [Member] | Dr. Charles Zhang [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 80.00% | |
High Century [Member] | Wei Li [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 20.00% | |
Heng Da Yi Tong [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 1.2 | |
Heng Da Yi Tong [Member] | Dr. Charles Zhang [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 80.00% | |
Heng Da Yi Tong [Member] | Wei Li [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 20.00% | |
Sohu Internet [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 1.6 | |
Sohu Internet [Member] | High Century [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Donglin [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 1.5 | |
Donglin [Member] | Sohu Internet [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Tianjin Jinhu [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 0.5 | |
Tianjin Jinhu [Member] | Ye Deng [Member] | ||
Variable Interest Entity [Line Items] | ||
Transferred equity interest to new shareholders | 50.00% | |
Tianjin Jinhu [Member] | Xiufeng Deng [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 50.00% | |
Tianjin Jinhu [Member] | Xuemei Zhang [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 50.00% | |
Guangzhou Qianjun [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 3.3 | |
Guangzhou Qianjun [Member] | Tianjin Jinhu [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Focus Interactive [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 1.6 | |
Focus Interactive [Member] | Heng Da Yi Tong [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Sogou Information [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 2.5 | |
Sogou Information [Member] | High Century [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 45.00% | |
Sogou Information [Member] | Xiaochuan Wang [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 10.00% | |
Sogou Information [Member] | Tencent [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 45.00% | |
Gamease [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 1.3 | |
Gamease [Member] | High Century [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Guanyou Gamespace [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 1.5 | |
Guanyou Gamespace [Member] | Changyou Star [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Shanghai ICE [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 1.2 | |
Shanghai ICE [Member] | Gamease [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Wuhan Baina Information [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital | $ 3 | |
Wuhan Baina Information [Member] | Changyou Star [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 60.00% | |
Wuhan Baina Information [Member] | Yongzhi Yang [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 40.00% |
VIEs (VIEs Consolidated withi95
VIEs (VIEs Consolidated within Sohu Group, Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
ASSETS: | ||||
Cash and cash equivalents | $ 1,050,957 | $ 1,245,205 | $ 876,340 | $ 1,287,288 |
Accounts receivable, net | 189,167 | 273,617 | ||
Prepaid and other current assets | 260,133 | 154,217 | ||
Assets held for sale | 103,079 | 0 | ||
Long-term investments, net | 74,273 | 62,093 | ||
Fixed assets, net | 503,631 | 508,692 | ||
Intangible assets, net | 32,131 | 55,415 | ||
Goodwill | 68,290 | 154,219 | 303,426 | |
Other non-current assets | 29,100 | 43,988 | ||
LIABILITIES: | ||||
Accounts payable | 193,209 | 129,025 | ||
Accrued liabilities | 324,876 | 309,657 | ||
Receipts in advance and deferred revenue | 118,951 | 135,385 | ||
Liabilities held for sale | 3,902 | 0 | ||
Long-term accounts payable | 744 | 4,600 | ||
Long-term taxes payable | 32,625 | 24,732 | ||
Deferred tax liabilities | 39,784 | 42,415 | ||
Net revenue | 1,650,431 | 1,937,091 | 1,673,077 | |
Net income /(loss) | (114,973) | 108,855 | (171,219) | |
Net cash provided by /(used in) operating activities | 239,620 | 506,053 | 152,283 | |
Net cash provided by /(used in) investing activities | (50,739) | (69,767) | (438,474) | |
Net cash provided by financing activities | (327,934) | (43,116) | (122,810) | |
Consolidated VIEs [Member] | ||||
ASSETS: | ||||
Cash and cash equivalents | 94,859 | 131,270 | ||
Accounts receivable, net | 72,151 | 135,925 | ||
Prepaid and other current assets | 86,722 | 101,951 | ||
Assets held for sale | 12,551 | 0 | ||
Intercompany receivables due from the Company's subsidiaries | 197,438 | 140,396 | ||
Total current assets | 463,721 | 509,542 | ||
Long-term investments, net | 17,472 | 15,960 | ||
Fixed assets, net | 4,372 | 7,362 | ||
Intangible assets, net | 14,545 | 18,266 | ||
Goodwill | 35,161 | 36,351 | ||
Other non-current assets | 4,052 | 12,057 | ||
Total assets | 539,323 | 599,538 | ||
LIABILITIES: | ||||
Accounts payable | 15,824 | 23,757 | ||
Accrued liabilities | 96,695 | 79,012 | ||
Receipts in advance and deferred revenue | 44,797 | 55,319 | ||
Liabilities held for sale | 3,232 | 0 | ||
Other current liabilities | 111,775 | 139,577 | ||
Intercompany payables due to the Company's subsidiaries | 129,431 | 175,178 | ||
Total current liabilities | 401,754 | 472,843 | ||
Long-term accounts payable | 0 | 2,858 | ||
Long-term taxes payable | 13,463 | 180 | ||
Deferred tax liabilities | 1,273 | 1,490 | ||
Intercompany payables due to the Company's subsidiaries | 19,620 | 21,717 | ||
Total liabilities | 436,110 | 499,088 | ||
Net revenue | 894,697 | 1,181,354 | 1,063,655 | |
Net income /(loss) | 9,557 | (78,722) | (90,840) | |
Net cash provided by /(used in) operating activities | (17,804) | 38,628 | 69,171 | |
Net cash provided by /(used in) investing activities | (2,273) | 55,108 | (159,094) | |
Net cash provided by financing activities | $ 0 | $ 2,855 | $ 17,742 |
VIEs (VIEs Consolidated withi96
VIEs (VIEs Consolidated within Sohu Group, Summary of Significant Agreements Currently in Effect) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Shareholders of Sogou Information [Member] | Sogou Technology [Member] | |
Variable Interest Entity [Line Items] | |
Power of attorney term | 10 years |
Shareholders of Tianjin Jinhu [Member] | Video Tianjin [Member] | |
Variable Interest Entity [Line Items] | |
Power of attorney term | 10 years |
Shareholders of Gamease [Member] | AmazGame [Member] | |
Variable Interest Entity [Line Items] | |
Power of attorney term | 10 years |
Percentage of exchange equity interests due to contributions to registered capital of equity | 100.00% |
Shareholders of Guanyou Gamespace [Member] | Gamespace [Member] | |
Variable Interest Entity [Line Items] | |
Power of attorney term | 10 years |
Percentage of exchange equity interests due to contributions to registered capital of equity | 100.00% |
Sogou Information [Member] | Sogou Technology [Member] | |
Variable Interest Entity [Line Items] | |
Exclusive technology consulting and service agreement term | 10 years |
Business cooperation agreement term | 10 years |
Sogou Information [Member] | Shareholders of Sogou Information [Member] | Sogou Technology [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Tianjin Jinhu [Member] | Video Tianjin [Member] | |
Variable Interest Entity [Line Items] | |
Exclusive technology consulting and service agreement term | 10 years |
Tianjin Jinhu [Member] | Shareholders of Tianjin Jinhu [Member] | Video Tianjin [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Gamease [Member] | Shareholders of Gamease [Member] | AmazGame [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Guanyou Gamespace [Member] | Shareholders of Guanyou Gamespace [Member] | Gamespace [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Wuhan Baina Information [Member] | Changyou Star and Yongzhi Yang [Member] | Beijing Baina Technology [Member] | |
Variable Interest Entity [Line Items] | |
Call option agreement, exercise price | At the lower of RMB1.00 (approximately $0.15) or the lowest purchase price permissible under PRC law |
Sohu Internet [Member] | Sohu Era [Member] | |
Variable Interest Entity [Line Items] | |
Exclusive technology consulting and service agreement term | 2 years |
Sohu.com Inc. Shareholders' E97
Sohu.com Inc. Shareholders' Equity (Summary of Sohu.com Inc.'s Outstanding Shares) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Common stock: | |||
Balance, beginning of year | 38,653 | 38,507 | 38,326 |
Issuance of common stock | 89 | 146 | 181 |
Balance, end of year | 38,742 | 38,653 | 38,507 |
Sohu.com Inc. Shareholders' E98
Sohu.com Inc. Shareholders' Equity (Treasury Stock) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Sohu [Member] | Common Stock [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased | 0 | 0 | 0 |
Sohu.com Inc. Shareholders' E99
Sohu.com Inc. Shareholders' Equity (Sohu's 2000 Stock Incentive Plan) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 19,120,000 | $ 53,443,000 | $ 74,443,000 |
Sohu 2000 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Maximum term of share rights granted under share incentive plan | 10 years | ||
Plan expiration date | Jan. 24, 2010 | ||
Share-based compensation expense | $ 0 | ||
Cash received under share incentive plan | $ 0 | ||
Sohu 2000 Stock Incentive Plan [Member] | Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance | 9,500,000 |
Sohu.com Inc. Shareholders' 100
Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Narrative) (Details) - Sohu 2010 Stock Incentive Plan [Member] - shares | 12 Months Ended | |
Dec. 31, 2016 | Jul. 02, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum term of share rights granted under share incentive plan | 10 years | |
Plan expiration date | Jul. 1, 2020 | |
Shares available for grant | 560,430 | |
Common Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance | 1,500,000 |
Sohu.com Inc. Shareholders' 101
Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Stock Option Activity, Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 07, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 01, 2016 | Feb. 07, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 19,120 | $ 53,443 | $ 74,443 | |||
Sohu 2010 Stock Incentive Plan [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted in period | 253,250 | 253,000 | ||||
Number of share options vested | 253,250 | 193,000 | ||||
Total fair value of stock options granted | $ 10,800 | |||||
Share-based compensation expense | $ 1,400 | $ 25,600 | ||||
Sohu 2010 Stock Incentive Plan [Member] | Stock Options [Member] | Common Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 13,000 | 1,068,000 | ||||
Exercise prices of option granted | $ 0.001 | $ 0.001 | ||||
Installments of stock options granted | Four equal installments | |||||
Award vesting period | 4 years |
Sohu.com Inc. Shareholders' 102
Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Stock Option Activity) (Details) $ / shares in Units, $ in Thousands | Feb. 07, 2016shares | Dec. 31, 2016USD ($)Years$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing stock price | $ / shares | $ 33.89 | ||
Sohu 2010 Stock Incentive Plan [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding, Beginning Balance | 0 | ||
Number of Shares, Granted | 253,250 | 253,000 | |
Number of Shares, Exercised | (60,000) | ||
Number of Shares, Forfeited or expired | 0 | ||
Number of Shares, Outstanding, Ending Balance | 193,000 | ||
Number of Shares, Vested, Ending balance | 253,250 | 193,000 | |
Number of Shares, Exercisable, Ending balance | 193,000 | ||
Weighted Average Exercise Price, Granted | $ / shares | $ 0.001 | ||
Weighted Average Exercise Price, Exercised | $ / shares | 0.001 | ||
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares | 0.001 | ||
Weighted Average Exercise Price, Vested, Ending balance | $ / shares | 0.001 | ||
Weighted Average Exercise Price, Exercisable, Ending balance | $ / shares | $ 0.001 | ||
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | Years | 8.10 | ||
Weighted Average Remaining Contractual Life (Years), Vested, Ending balance | Years | 8.10 | ||
Weighted Average Remaining Contractual Life (Years), Exercisable, Ending balance | Years | 8.10 | ||
Aggregate Intrinsic Value, Outstanding, Ending balance | $ | [1] | $ 6,549 | |
Aggregate Intrinsic Value, Vested, Ending balance | $ | [1] | 6,549 | |
Aggregate Intrinsic Value, Exercisable, Ending balance | $ | [1] | $ 6,549 | |
[1] | The aggregated intrinsic value in the preceding table represents the difference between Sohu's closing stock price of $33.89 on December 31, 2016 and the nominal exercise prices of the stock options. |
Sohu.com Inc. Shareholders' 103
Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Restricted Share Unit Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 19,120 | $ 53,443 | $ 74,443 |
Sohu 2010 Stock Incentive Plan [Member] | Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Units, Unvested, Beginning balance | 32 | ||
Number of Units, Granted | 11 | ||
Number of Units, Vested | (23) | ||
Number of Units, Forfeited | (9) | ||
Number of Units, Unvested, Ending balance | 11 | 32 | |
Number of Units, Expected to vest after December 31, 2016 | 8 | ||
Weighted-Average Grant-Date Fair Value, Unvested, Beginning balance | $ 70.24 | ||
Weighted-Average Grant-Date Fair Value, Granted | 51 | ||
Weighted-Average Grant-Date Fair Value, Vested | 62.11 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 63.45 | ||
Weighted-Average Grant-Date Fair Value, Unvested, Ending balance | 73.32 | $ 70.24 | |
Weighted-Average Grant-Date Fair Value, Expected to vest after December 31, 2016 | $ 73.32 | ||
Share-based compensation expense | $ 1,300 | $ 2,200 | 3,000 |
Unrecognized compensation expenses | $ 300 | ||
Unrecognized compensation expenses, weighted average period for recognition (in years) | 7 months 10 days | ||
Fair value of restricted share units vested | $ 900 | $ 1,600 | $ 1,200 |
Sohu.com Inc. Shareholders' 104
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 22, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 19,120,000 | $ 53,443,000 | $ 74,443,000 | ||
Sogou [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | [1] | $ 8,802,000 | 10,310,000 | 61,918,000 | |
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum term of share rights granted under share incentive plan | 10 years | ||||
Plan expiration date | Oct. 19, 2020 | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum term of share rights granted under share incentive plan | 10 years | ||||
Share-based compensation expense | $ 7,600,000 | $ 7,300,000 | 31,400,000 | ||
Number of shares outstanding | 9,451,000 | 12,209,000 | |||
Unrecognized compensation expenses | $ 800,000 | ||||
Unrecognized compensation expenses, weighted average period for recognition (in years) | 6 months 26 days | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Ordinary Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for issuance | 41,500,000 | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Ordinary Shares [Member] | Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options granted | 38,209,700 | ||||
Number of options granted for which performance targets had been set | 32,445,808 | ||||
Number of shares outstanding | 9,450,899 | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Ordinary Shares [Member] | Stock Options [Member] | Vesting upon Service Period and Achievement of Performance Targets [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options granted | 31,009,700 | ||||
Number of options granted, removed as a condition of vesting upon Sogou's IPO | 900,000 | ||||
Number of options granted for which performance targets had been set | 25,245,808 | ||||
Number of options vested and exercisable | 24,894,886 | ||||
Accumulated number of share options exercised | 22,994,909 | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Ordinary Shares [Member] | Stock Options [Member] | Vesting upon Service Period and Achievement of Performance Targets, Part One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options granted | 29,822,750 | ||||
Installments of share options granted | Four equal installments | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Ordinary Shares [Member] | Stock Options [Member] | Vesting upon Service Period and Achievement of Performance Targets, Part Two [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options granted | 1,186,950 | ||||
Installments of share options granted | Two to four installments | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Ordinary Shares [Member] | Stock Options [Member] | Vesting upon Completion of Sogou's IPO and Expiration of All Underwriters' Lockup Periods [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options granted | 7,200,000 | ||||
Installments of share options granted | Five equal installments | ||||
Share-based compensation expense | $ 0 | $ 0 | $ 0 | ||
[1] | Compensation expense for Sogou share-based awards also includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of Sogou Class A Ordinary Shares that Sogou repurchased in the second quarter of 2014. |
Sohu.com Inc. Shareholders' 105
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Option Activity) (Details) - Sogou [Member] - Sogou 2010 Share Incentive Plan [Member] - Stock Options [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2016Years$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | 12,209 |
Number of Shares, Granted | 2,337 |
Number of Shares, Exercised | (3,876) |
Number of Shares, Forfeited or expired | (1,219) |
Number of Shares, Outstanding, Ending Balance | 9,451 |
Number of Shares, Vested, Ending balance, and expected to vest thereafter | 2,251 |
Number of Shares, Exercisable, Ending balance | 1,900 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares | $ 0.369 |
Weighted Average Exercise Price, Granted | $ / shares | 0.001 |
Weighted Average Exercise Price, Exercised | $ / shares | 0.001 |
Weighted Average Exercise Price, Forfeited or expired | $ / shares | 0.001 |
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares | $ 0.476 |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | Years | 6.31 |
Sohu.com Inc. Shareholders' 106
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Option Assumptions) (Details) - Sogou [Member] - Sogou 2010 Share Incentive Plan [Member] - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average expected option life | 7 years | 8 years | 7 years |
Dividend yield | 0.00% | 0.00% | 0.00% |
Fair value | $ 3.58 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 1.90% | 2.48% | 2.62% |
Exercise multiple | 2 | 2 | 2 |
Expected forfeiture rate (post-vesting) | 0.00% | 1.00% | 0.00% |
Volatility rate | 43.00% | 47.00% | 49.00% |
Fair value | $ 3.18 | $ 5.85 | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 2.77% | 2.77% | 3.05% |
Exercise multiple | 3 | 3 | 3 |
Expected forfeiture rate (post-vesting) | 12.00% | 12.00% | 12.00% |
Volatility rate | 50.00% | 51.00% | 54.00% |
Fair value | $ 3.93 | $ 6.35 |
Sohu.com Inc. Shareholders' 107
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Option Assumptions, Narrative) (Details) - Sogou [Member] - Sogou 2010 Share Incentive Plan [Member] | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contract life of the option | 10 years | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contract life of the option | 10 years | ||
Estimated dividend yield | 0.00% | 0.00% | 0.00% |
Stock Options [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 2 | 2 | 2 |
Estimated forfeiture rate | 0.00% | 1.00% | 0.00% |
Stock Options [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 3 | 3 | 3 |
Estimated forfeiture rate | 12.00% | 12.00% | 12.00% |
Stock Options [Member] | Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 2 | ||
Estimated forfeiture rate | 12.00% | ||
Stock Options [Member] | Management [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise multiple | 3 | ||
Stock Options [Member] | Management [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated forfeiture rate | 0.00% | ||
Stock Options [Member] | Management [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated forfeiture rate | 1.00% |
Sohu.com Inc. Shareholders' 108
Sohu.com Inc. Shareholders' Equity (Sohu Management Sogou Share Option Arrangement, Narrative) (Details) - USD ($) | Apr. 14, 2011 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 19,120,000 | $ 53,443,000 | $ 74,443,000 | |||
Sogou [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | [1] | 8,802,000 | 10,310,000 | 61,918,000 | ||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 400,000 | $ 100,000 | 8,900,000 | |||
Number of shares outstanding | 3,190,000 | 3,664,000 | ||||
Unrecognized compensation expenses | $ 0 | |||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Ordinary Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized for issuance | 12,000,000 | |||||
Sogou's ordinary shares previously held by Sohu | 8,800,000 | |||||
Sogou's newly-issued shares | 3,200,000 | |||||
Sogou's newly-issued shares, price per share | $ 0.625 | |||||
Sogou's newly-issued shares, value | $ 2,000,000 | |||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Ordinary Shares [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 10,705,000 | |||||
Number of options granted for which performance targets had been set | 10,705,000 | |||||
Number of shares outstanding | 3,189,500 | |||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Ordinary Shares [Member] | Stock Options [Member] | Vesting upon Completion of Sogou's IPO and Expiration of All Underwriters' Lockup Periods [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 2,400,000 | |||||
Installments of share options granted | Five equal installments | |||||
Share-based compensation expense | $ 0 | $ 0 | $ 0 | |||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Ordinary Shares [Member] | Stock Options [Member] | Board of Directors [Member] | Vesting upon Service Period and Achievement of Performance Targets [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 15,000 | |||||
Accumulated number of share options exercised | 15,000 | |||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Ordinary Shares [Member] | Stock Options [Member] | Management and Key Employees [Member] | Vesting upon Service Period and Achievement of Performance Targets [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 8,290,000 | |||||
Installments of share options granted | Four equal installments | |||||
Number of options granted for which performance targets had been set | 8,290,000 | |||||
Number of options vested and exercisable | 8,290,000 | |||||
Accumulated number of share options exercised | 7,512,500 | |||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Ordinary Shares [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fixed exercise price of ordinary share | $ 0.001 | |||||
Sogou [Member] | Sohu Management Sogou Share Option Arrangement [Member] | Ordinary Shares [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fixed exercise price of ordinary share | $ 0.625 | |||||
[1] | Compensation expense for Sogou share-based awards also includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of Sogou Class A Ordinary Shares that Sogou repurchased in the second quarter of 2014. |
Sohu.com Inc. Shareholders' 109
Sohu.com Inc. Shareholders' Equity (Sohu Management Sogou Share Option Arrangement, Share Option Activity) (Details) - Sogou [Member] - Sohu Management Sogou Share Option Arrangement [Member] - Stock Options [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2016Years$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | 3,664 |
Number of Shares, Granted | 58 |
Number of Shares, Exercised | (532) |
Number of Shares, Forfeited or expired | 0 |
Number of Shares, Outstanding, Ending Balance | 3,190 |
Number of Shares, Vested, Ending balance, and expected to vest thereafter | 790 |
Number of Shares, Exercisable, Ending balance | 790 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares | $ 0.623 |
Weighted Average Exercise Price, Granted | $ / shares | 0.625 |
Weighted Average Exercise Price, Exercised | $ / shares | 0.625 |
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares | $ 0.623 |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | Years | 5.78 |
Sohu.com Inc. Shareholders' 110
Sohu.com Inc. Shareholders' Equity (Sohu Management Sogou Share Option Arrangement, Share Option Assumptions) (Details) - Sogou [Member] - Sohu Management Sogou Share Option Arrangement [Member] - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected forfeiture rate (post-vesting) | 0.00% | 0.00% | |
Weighted average expected option life | 6 years | 8 years | 7 years |
Dividend yield | 0.00% | 0.00% | 0.00% |
Fair value | $ 5.23 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 2.01% | 2.67% | 2.62% |
Exercise multiple | 2 | 2 | 2 |
Expected forfeiture rate (post-vesting) | 0.00% | ||
Volatility rate | 43.00% | 50.00% | 52.00% |
Fair value | $ 2.56 | $ 2.96 | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 2.15% | 3.01% | 2.93% |
Exercise multiple | 3 | 3 | 3 |
Expected forfeiture rate (post-vesting) | 8.00% | ||
Volatility rate | 47.00% | 53.00% | 54.00% |
Fair value | $ 3.31 | $ 7.03 |
Sohu.com Inc. Shareholders' 111
Sohu.com Inc. Shareholders' Equity (Sogou Inc. Share-based Awards, Option Modification) (Details) - Sogou [Member] - Ordinary Shares [Member] | 12 Months Ended |
Dec. 31, 2016USD ($)shares | |
Sogou 2010 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Incremental compensation expense | $ 0 |
Sogou 2010 Share Incentive Plan [Member] | Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Accumulated number of share options early exercised | shares | 11,370,000 |
Sohu Management Sogou Share Option Arrangement [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Incremental compensation expense | $ 0 |
Sohu.com Inc. Shareholders' 112
Sohu.com Inc. Shareholders' Equity (Tencent Share-based Awards Granted to Employees Who Transferred to Sogou with Soso Search-related Businesses) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
May 31, 2014 | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 19,120 | $ 53,443 | $ 74,443 | ||
Tencent [Member] | Ordinary Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock split, conversion ratio | 5 | ||||
Sogou [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | [1] | 8,802 | 10,310 | 61,918 | |
Sogou [Member] | Tencent [Member] | Tencent Share-based Awards Related to Soso [Member] | Restricted Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | 800 | $ 2,000 | $ 4,900 | ||
Unrecognized compensation expenses | $ 200 | ||||
Unrecognized compensation expenses, weighted average period for recognition (in years) | 1 year 2 months 12 days | ||||
Sogou [Member] | Tencent [Member] | Tencent Share-based Awards Related to Soso [Member] | Ordinary Shares [Member] | Restricted Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for issuance | shares | 53,100 | ||||
[1] | Compensation expense for Sogou share-based awards also includes compensation expense for Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search-related businesses, and compensation expense equal to the excess of the repurchase price paid to employees over the fair value at the repurchase date of Sogou Class A Ordinary Shares that Sogou repurchased in the second quarter of 2014. |
Sohu.com Inc. Shareholders' 113
Sohu.com Inc. Shareholders' Equity (Changyou's 2008 Share Incentive Plan) (Details) - Changyou [Member] - Changyou's 2008 Share Incentive Plan [Member] | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2009shares | Dec. 31, 2016shares | Dec. 31, 2008shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Maximum term of share rights granted under share incentive plan | 10 years | ||
Plan expiration date | Aug. 31, 2018 | ||
Ordinary Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for future issuance | 2,000,000 | ||
Shares reserved for future issuance as result of stock split | 20,000,000 | ||
Stock split, conversion ratio | 10 | ||
Ordinary Shares [Member] | Ordinary Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 15,000,000 | ||
Ordinary Shares [Member] | Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 4,614,098 |
Sohu.com Inc. Shareholders' 114
Sohu.com Inc. Shareholders' Equity (Share-based Awards Granted before Changyou's IPO, Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 19,120,000 | $ 53,443,000 | $ 74,443,000 |
Changyou [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 8,402,000 | $ 15,024,000 | $ 4,087,000 |
Changyou [Member] | Changyou's Share-based Awards Granted before IPO [Member] | Ordinary Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 0 | ||
Changyou [Member] | Changyou's Share-based Awards Granted before IPO [Member] | Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 0 |
Sohu.com Inc. Shareholders' 115
Sohu.com Inc. Shareholders' Equity (Share-based Awards Granted after Changyou's IPO, Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 19,120,000 | $ 53,443,000 | $ 74,443,000 |
Changyou [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 8,402,000 | 15,024,000 | 4,087,000 |
Changyou [Member] | Changyou's Share-based Awards Granted after IPO [Member] | Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 100,000 | (200,000) | 1,300,000 |
Unrecognized compensation expenses | $ 31,000 | ||
Unrecognized compensation expenses, weighted average period for recognition (in years) | 6 months 18 days | ||
Fair value of restricted share units vested | $ 100,000 | $ 1,100,000 | $ 1,100,000 |
Changyou [Member] | Changyou's Share-based Awards Granted after IPO [Member] | Ordinary Shares [Member] | Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares or units granted | 1,581,226 | ||
Award vesting period | 4 years |
Sohu.com Inc. Shareholders' 116
Sohu.com Inc. Shareholders' Equity (Share-based Awards Granted after Changyou's IPO, Restricted Share Unit Activity) (Details) - Changyou [Member] - Changyou's Share-based Awards Granted after IPO [Member] - Restricted Share Units [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Units, Unvested, Beginning balance | 20 |
Number of Units, Granted | 0 |
Number of Units, Vested | (10) |
Number of Units, Forfeited | 0 |
Number of Units, Unvested, Ending balance | 10 |
Number of Units, Expected to vest thereafter | 10 |
Weighted-Average Grant-Date Fair Value, Unvested, Beginning balance | $ / shares | $ 14.25 |
Weighted-Average Grant-Date Fair Value, Unvested, Ending balance | $ / shares | 14.25 |
Weighted-Average Grant-Date Fair Value, Expected to vest thereafter | $ / shares | $ 14.25 |
Sohu.com Inc. Shareholders' 117
Sohu.com Inc. Shareholders' Equity (Changyou 2014 Share Incentive Plan, Narrative) (Details) - USD ($) | Nov. 02, 2016 | Jun. 01, 2016 | Nov. 02, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 28, 2016 | Jun. 01, 2015 | Feb. 16, 2015 | Nov. 02, 2014 | Jun. 27, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation expense | $ 19,120,000 | $ 53,443,000 | $ 74,443,000 | ||||||||
Changyou [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation expense | $ 8,402,000 | 15,024,000 | 4,087,000 | ||||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Maximum term of share rights granted under share incentive plan | 10 years | ||||||||||
Plan expiration date | Jun. 30, 2024 | ||||||||||
Shares available for grant | 2,823,000 | ||||||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Stock Options [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of share options vested | 450,000 | 329,000 | 450,000 | 852,000 | |||||||
Total fair value of share options granted | $ 5,900,000 | $ 3,200,000 | $ 4,700,000 | ||||||||
Share-based compensation expense | $ 8,300,000 | 15,200,000 | 2,600,000 | ||||||||
Total fair values of share options vested | 9,100,000 | 4,700,000 | $ 0 | ||||||||
Total amount of weighted average grant date fair value of options granted | $ 5,900,000 | $ 6,300,000 | |||||||||
Share options exercised | 377,000 | 0 | |||||||||
Total intrinsic value of share options exercised | $ 4,300,000 | ||||||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Class A Restricted Share Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares or units granted | 2,416,000 | ||||||||||
Award vesting period | 4 years | ||||||||||
Share-based compensation expense | $ (17,000) | ||||||||||
Unrecognized compensation expenses | $ 0 | ||||||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares reserved for future issuance | 6,000,000 | 2,000,000 | |||||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Stock Options [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares or units granted | 100,000 | 1,998,000 | |||||||||
Number of Class A restricted share units converted to options | 2,400,000 | ||||||||||
Exercise prices of option granted | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Installments of share options granted | Four equal installments | ||||||||||
Award vesting period | 4 years | ||||||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Class A Restricted Share Units [Member] | Class A Restricted Share Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares or units granted | 16,000 |
Sohu.com Inc. Shareholders' 118
Sohu.com Inc. Shareholders' Equity (Changyou 2014 Share Incentive Plan, Share Option Activity) (Details) $ / shares in Units, $ in Thousands | Nov. 02, 2016shares | Jun. 01, 2016shares | Nov. 02, 2015shares | Dec. 31, 2016USD ($)Years$ / sharesshares | Dec. 31, 2015USD ($)Years$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Closing price | $ 33.89 | |||||
Changyou [Member] | Class A Ordinary Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Closing price | 10.61 | |||||
Changyou [Member] | ADS [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Closing price | $ 21.22 | |||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Share Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of Shares, Outstanding, Beginning Balance | shares | 450,000 | |||||
Number of Shares, Granted | shares | 779,000 | |||||
Number of Shares, Exercised | shares | (377,000) | 0 | ||||
Number of Shares, Forfeited or expired | shares | 0 | |||||
Number of Shares, Outstanding, Ending Balance | shares | 852,000 | 450,000 | ||||
Number of Shares, Vested, Ending balance | shares | 450,000 | 329,000 | 450,000 | 852,000 | ||
Number of Shares, Exercisable, Ending balance | shares | 852,000 | |||||
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 0.01 | |||||
Weighted Average Exercise Price, Granted | 0.01 | |||||
Weighted Average Exercise Price, Exercised | 0.01 | |||||
Weighted Average Exercise Price, Outstanding, Ending balance | 0.01 | $ 0.01 | ||||
Weighted Average Exercise Price, Vested, Ending balance | 0.01 | |||||
Weighted Average Exercise Price, Exercisable, Ending balance | $ 0.01 | |||||
Weighted Average Remaining Contractual Life (Years), Outstanding, Beginning balance | Years | 8.84 | |||||
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | Years | 7.93 | 8.84 | ||||
Aggregate Intrinsic Value, Outstanding, Beginning balance | $ | [1] | $ 5,580 | ||||
Aggregate Intrinsic Value, Outstanding, Ending balance | $ | [1] | $ 9,032 | $ 5,580 | |||
[1] | The aggregated intrinsic value in the preceding table represents the difference between Changyou's closing price of $21.22 per ADS, or $10.61 per Class A ordinary share, on December 31, 2016 and the nominal exercise prices of the share options. |
Sohu.com Inc. Shareholders' 119
Sohu.com Inc. Shareholders' Equity (Sohu Video Share-based Awards, Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 04, 2012 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 19,120 | $ 53,443 | $ 74,443 | ||
Sohu Video [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | [1] | $ (845) | 298 | 4,028 | |
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum term of share rights granted under share incentive plan | 10 years | ||||
Plan expiration date | Jan. 3, 2021 | ||||
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ (800) | $ 300 | $ 4,000 | ||
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Ordinary Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for future issuance | 25,000,000 | ||||
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Ordinary Shares [Member] | Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options granted | 16,368,200 | ||||
Installments of share options granted | Four equal installments | ||||
Number of options vested | 4,972,800 | ||||
[1] | The negative amount resulted from re-measured compensation expense based on the then-current fair value of the awards on each reporting date. |
Sohu.com Inc. Shareholders' 120
Sohu.com Inc. Shareholders' Equity (Sohu Video Share-based Awards, Share Option Assumptions) (Details) - Sohu Video [Member] - Video 2011 Share Incentive Plan [Member] - Stock Options [Member] | 12 Months Ended |
Dec. 31, 2016$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average risk-free interest rate | 2.63% |
Exercise multiple | 2.8 |
Expected forfeiture rate (post-vesting) | 19.00% |
Weighted average expected option life | 5 years |
Volatility rate | 46.80% |
Dividend yield | 0.00% |
Fair value | $ 0.71 |
Business Combination (MoboTap,
Business Combination (MoboTap, Narrative) (Details) - USD ($) $ in Thousands | Jul. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 68,290 | $ 154,219 | $ 303,426 | |
Intangible assets impairment losses | 19,900 | |||
Changyou [Member] | MoboTap [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of acquired equity interest | 51.00% | |||
Cash consideration | $ 90,830 | |||
Percentage of equity interests, Changyou has the right to purchase from noncontrolling shareholders | 10.00% | |||
Percentage below IPO price, Changyou has the right to purchase from noncontrolling shareholders | 20.00% | |||
Percentage of equity interests, noncontrolling shareholders have right to put to controlling shareholder under specific conditions | 15.00% | |||
Aggregate price of equity interests, noncontrolling shareholders have right to put to controlling shareholder under specific conditions | $ 53,000 | |||
Goodwill | $ 113,040 | |||
Goodwill impairment loss | 29,600 | |||
Intangible assets impairment losses | $ 8,900 | |||
Divestiture of equity interest in MoboTap | 51.00% | |||
Changyou [Member] | MoboTap [Member] | User base [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful lives of acquired identifiable intangible assets | 2 years 4 months 24 days | |||
Changyou [Member] | MoboTap [Member] | Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful lives of acquired identifiable intangible assets | 5 years 4 months 24 days | |||
Changyou [Member] | MoboTap [Member] | Trademarks [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful lives of acquired identifiable intangible assets | 10 years 4 months 24 days |
Business Combination (Allocatio
Business Combination (Allocation of Consideration of Assets Acquired and Liabilities Assumed Based on Their Fair Values) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 68,290 | $ 154,219 | $ 303,426 | |
Changyou [Member] | MoboTap [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 90,830 | |||
Repurchase option | 793 | |||
Identifiable intangible assets acquired | 27,000 | |||
Goodwill | 113,040 | |||
Other assets | 6,714 | |||
Put option | (298) | |||
Liabilities assumed | (2,995) | |||
Noncontrolling interest | (53,424) | |||
Total | $ 90,830 |
Noncontrolling Interest (Narrat
Noncontrolling Interest (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest in consolidated balance sheets | $ 564,215 | $ 489,730 | |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | 109,048 | 146,542 | $ (32,309) |
Sogou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest in consolidated balance sheets | 165,584 | 125,314 | |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | 61,403 | 101,656 | (14,202) |
Changyou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest in consolidated balance sheets | $ 398,631 | $ 364,416 | |
Percentage of noncontrolling interest recognized in consolidated balance sheets | 31.00% | 31.00% | |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ 47,645 | $ 44,886 | $ (18,873) |
Percentage of net income /(loss) attributable to noncontrolling interest recognized in consolidated statements of comprehensive income | 31.00% | 31.00% | 32.00% |
Noncontrolling Interest (Noncon
Noncontrolling Interest (Noncontrolling Interest in Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest in consolidated balance sheets | $ 564,215 | $ 489,730 |
Sogou [Member] | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest in consolidated balance sheets | 165,584 | 125,314 |
Changyou [Member] | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest in consolidated balance sheets | $ 398,631 | $ 364,416 |
Noncontrolling Interest (Non125
Noncontrolling Interest (Noncontrolling Interest in Consolidated Statements of Comprehensive Income /(Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Noncontrolling Interest [Line Items] | |||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ 109,048 | $ 146,542 | $ (32,309) |
Sogou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | 61,403 | 101,656 | (14,202) |
Changyou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | 47,645 | 44,886 | (18,873) |
Others [Member] | |||
Noncontrolling Interest [Line Items] | |||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ 0 | $ 0 | $ 766 |
Net Income _(Loss) per Share (N
Net Income /(Loss) per Share (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | Mar. 31, 2014 | |
Sogou [Member] | |||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | |||||
Incremental dilution | $ 0 | $ 0 | $ (3,919) | ||
Sogou [Member] | China Web [Member] | |||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | |||||
Deemed dividend | $ 27,700 | ||||
Sogou [Member] | China Web [Member] | Series A Preferred Shares [Member] | |||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | |||||
Purchase of Series A Preferred Shares, shares | 14,400,000 | ||||
Purchase of Series A Preferred Shares, aggregate purchase price | $ 47,300 | ||||
Sogou [Member] | Photon [Member] | |||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | |||||
Deemed dividend | $ 11,900 | ||||
Sogou [Member] | Photon [Member] | Series A Preferred Shares [Member] | |||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | |||||
Purchase of Series A Preferred Shares, shares | 6,400,000 | ||||
Purchase of Series A Preferred Shares, aggregate purchase price | $ 21,000 | ||||
Potential common shares issuable upon exercise or settlement of share-based awards [Member] | |||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Line Items] | |||||
Anti-dilutive potential common shares | 232,488 |
Net Income _(Loss) per Share (C
Net Income /(Loss) per Share (Calculation of Sohu Group's Basic and Diluted Net Loss per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||
Net loss attributable to Sohu.com Inc., basic (after subtracting the dividend or deemed dividend to noncontrolling Sogou Series A Preferred shareholders) | $ (224,021) | $ (49,598) | $ (166,657) |
Effect of dilutive securities: | |||
Net loss attributable to Sohu.com Inc., diluted | $ (225,660) | $ (50,829) | $ (170,576) |
Denominator: | |||
Weighted average basic common shares outstanding | 38,706 | 38,598 | 38,468 |
Effect of dilutive securities: | |||
Share options and restricted share units | 0 | 0 | 0 |
Weighted average diluted common shares outstanding | 38,706 | 38,598 | 38,468 |
Basic net loss per share attributable to Sohu.com Inc. | $ (5.79) | $ (1.28) | $ (4.33) |
Diluted net loss per share attributable to Sohu.com Inc. | $ (5.83) | $ (1.32) | $ (4.43) |
Sogou [Member] | |||
Effect of dilutive securities: | |||
Incremental dilution | $ 0 | $ 0 | $ (3,919) |
Changyou [Member] | |||
Effect of dilutive securities: | |||
Incremental dilution | $ (1,639) | $ (1,231) | $ 0 |
China Contribution Plan (Detail
China Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
China Contribution Plan [Abstract] | |||
Annual Contributions | $ 131.6 | $ 132.6 | $ 134.2 |
Profit Appropriation (Details)
Profit Appropriation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Profit Appropriation [Line Items] | |||
Portion of after-tax profit to be allocated to general reserve under PRC Law | 10.00% | ||
Required general reserve /registered capital ratio to de-force compulsory net profit allocation to general reserve | 50.00% | ||
Amount of profits appropriated to the general reserve fund and the statutory surplus fund | $ 4.3 | $ 7.7 | $ 4.9 |
Amount of profits contributed to theses funds | $ 51 | $ 46.8 | |
China Foreign Investment Enterprises Law [Member] | |||
Profit Appropriation [Line Items] | |||
Required general reserve /registered capital ratio to de-force compulsory net profit allocation to general reserve | 50.00% | ||
China Foreign Investment Enterprises Law [Member] | Minimum [Member] | |||
Profit Appropriation [Line Items] | |||
Portion of after-tax profit to be allocated to general reserve under PRC Law | 10.00% | ||
China Company Law [Member] | |||
Profit Appropriation [Line Items] | |||
Required general reserve /registered capital ratio to de-force compulsory net profit allocation to general reserve | 50.00% | ||
China Company Law [Member] | Minimum [Member] | |||
Profit Appropriation [Line Items] | |||
Portion of after-tax profit to be allocated to general reserve under PRC Law | 10.00% |
Concentration Risks (Details)
Concentration Risks (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)Institutions | Dec. 31, 2015USD ($)Institutions | Dec. 31, 2014USD ($) | |
Customer Risk [Member] | Total Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Revenues from clients that individually represent greater than 10% of total revenues | $ | $ 0 | $ 0 | $ 0 |
Product Risk [Member] | Total Revenue [Member] | TLBB [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 13.00% | ||
Product Risk [Member] | Online Game Revenue [Member] | TLBB [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 56.00% | ||
Credit risk [Member] | Cash and Cash Equivalents [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 38.00% | 59.00% | |
Number of financial institutions cash and cash equivalents concentrated held in | Institutions | 15 | 16 | |
Maximum percentage of Sohu's cash and bank deposits in any single financial institution | 32.00% | 28.00% |
Restricted Net Assets (Details)
Restricted Net Assets (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Restricted Net Assets [Abstract] | |
Portion of net after-tax income to be allocated to statutory surplus reserve fund | 10.00% |
Percentage rate of registered capital, reserve funds reached, appropriation not required | 50.00% |
Schedule I - Condensed Finan132
Schedule I - Condensed Financial Information of Registrant (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||||
Cash and cash equivalents | $ 1,050,957 | $ 1,245,205 | $ 876,340 | $ 1,287,288 |
Prepaid and other current assets | 260,133 | 154,217 | ||
Total current assets | 1,851,262 | 2,074,839 | ||
Total assets | 2,563,690 | 3,042,194 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities | 932,742 | 1,239,695 | ||
Long-term liabilities | 73,153 | 71,747 | ||
Total liabilities | 1,005,895 | 1,311,442 | ||
Shareholders' equity: | ||||
Common stock: $0.001 par value per share (75,400 shares authorized; 38,653 shares and 38,742 shares, respectively, issued and outstanding as of December 31, 2015 and 2016) | 45 | 45 | ||
Additional paid-in capital | 821,867 | 798,357 | ||
Treasury stock (5,889 shares as of both December 31, 2015 and 2016) | (143,858) | (143,858) | ||
Accumulated other comprehensive income | 3,220 | 50,151 | ||
Retained earnings | 312,306 | 536,327 | ||
Total shareholders' equity | 993,580 | 1,241,022 | ||
Total liabilities and shareholders' equity | 2,563,690 | 3,042,194 | ||
Sohu.com Inc. [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 8,990 | 16,096 | $ 23,189 | $ 35,659 |
Prepaid and other current assets | 6,218 | 8,320 | ||
Due from subsidiaries and VIEs | 3,806 | 3,806 | ||
Total current assets | 19,014 | 28,222 | ||
Interests in subsidiaries and VIEs | 989,875 | 1,232,327 | ||
Total assets | 1,008,889 | 1,260,549 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities | 4,501 | 4,558 | ||
Long-term liabilities | 10,808 | 14,969 | ||
Total liabilities | 15,309 | 19,527 | ||
Shareholders' equity: | ||||
Common stock: $0.001 par value per share (75,400 shares authorized; 38,653 shares and 38,742 shares, respectively, issued and outstanding as of December 31, 2015 and 2016) | 45 | 45 | ||
Additional paid-in capital | 821,867 | 798,357 | ||
Treasury stock (5,889 shares as of both December 31, 2015 and 2016) | (143,858) | (143,858) | ||
Accumulated other comprehensive income | 3,220 | 50,151 | ||
Retained earnings | 312,306 | 536,327 | ||
Total shareholders' equity | 993,580 | 1,241,022 | ||
Total liabilities and shareholders' equity | $ 1,008,889 | $ 1,260,549 |
Schedule I - Condensed Finan133
Schedule I - Condensed Financial Information of Registrant (Condensed Balance Sheets) (Parenthetical) (Details) - $ / shares shares in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 75,400 | 75,400 | ||
Common stock, shares outstanding (in shares) | 38,742 | 38,653 | 38,507 | 38,326 |
Treasury stock, shares (in shares) | 5,889 | 5,889 | ||
Sohu.com Inc. [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock, shares authorized (in shares) | 75,400 | 75,400 | ||
Common stock, shares outstanding (in shares) | 38,742 | 38,653 | ||
Treasury stock, shares (in shares) | 5,889 | 5,889 |
Schedule I - Condensed Finan134
Schedule I - Condensed Financial Information of Registrant (Condensed Statements of Comprehensive Income/(Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Statement of Income Captions [Line Items] | |||
Revenues | $ 1,650,431 | $ 1,937,091 | $ 1,673,077 |
Cost of revenues | 859,800 | 859,064 | 685,634 |
Gross profit | 790,631 | 1,078,027 | 987,443 |
Operating expenses: | |||
General and administrative | 119,841 | 173,160 | 204,325 |
Operating loss | (117,134) | 82,469 | (204,963) |
Other income /(expense) | (10,713) | 74,526 | 9,959 |
Income /(loss) before income tax expense | (93,901) | 185,791 | (165,169) |
Income tax expense/(benefit) | 21,072 | 76,936 | 6,050 |
Net loss | (224,021) | (49,598) | (166,657) |
Other comprehensive loss | (77,155) | (87,655) | (8,390) |
Comprehensive loss | (270,952) | (108,849) | (173,559) |
Sohu.com Inc. [Member] | |||
Condensed Statement of Income Captions [Line Items] | |||
Revenues | 0 | 0 | 0 |
Cost of revenues | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 |
Operating expenses: | |||
General and administrative | 8,845 | 22,091 | 7,829 |
Operating loss | (8,845) | (22,091) | (7,829) |
Equity in loss of subsidiaries and VIEs | (217,408) | (4,430) | (129,324) |
Other income /(expense) | (54) | (12) | (28) |
Interest income | 107 | 95 | 76 |
Income /(loss) before income tax expense | (226,200) | (26,438) | (137,105) |
Income tax expense/(benefit) | (2,179) | 11,249 | 1,805 |
Net loss | (224,021) | (37,687) | (138,910) |
Other comprehensive loss | (46,931) | (59,251) | (6,903) |
Comprehensive loss | $ (270,952) | $ (96,938) | $ (145,813) |
Schedule I - Condensed Finan135
Schedule I - Condensed Financial Information of Registrant (Condensed Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net loss | $ (114,973) | $ 108,855 | $ (171,219) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Share-based compensation expense | 19,120 | 53,443 | 57,264 |
Changes in current assets and liabilities: | |||
Prepaid and other current assets | 15,091 | 101 | 30,577 |
Taxes payable | (36,666) | 29,573 | (16,256) |
Net cash used in operating activities | 239,620 | 506,053 | 152,283 |
Cash flows from investing activities: | |||
Net cash provided by investing activities | (50,739) | (69,767) | (438,474) |
Cash flows from financing activities: | |||
Issuance of common stock | 0 | 2,124 | 611 |
Net cash used in financing activities | (327,934) | (43,116) | (122,810) |
Net decrease in cash and cash equivalents | (194,248) | 368,865 | (410,948) |
Cash and cash equivalents at beginning of year | 1,245,205 | 876,340 | 1,287,288 |
Cash and cash equivalents at end of year | 1,050,957 | 1,245,205 | 876,340 |
Sohu.com Inc. [Member] | |||
Cash flows from operating activities: | |||
Net loss | (224,021) | (37,687) | (138,910) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Investment income from subsidiaries and VIEs | 217,408 | 4,430 | 129,324 |
Share-based compensation expense | 1,309 | 15,393 | 1,120 |
Changes in current assets and liabilities: | |||
Prepaid and other current assets | 842 | (71) | (110) |
Taxes payable | (630) | 811 | (510) |
Accrued liabilities | (2,014) | 7,905 | (3,996) |
Net cash used in operating activities | (7,106) | (9,219) | (13,082) |
Cash flows from investing activities: | |||
Dividend received | 0 | 0 | 0 |
Net cash provided by investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Issuance of common stock | 0 | 2,126 | 612 |
Net cash used in financing activities | 0 | 2,126 | 612 |
Net decrease in cash and cash equivalents | (7,106) | (7,093) | (12,470) |
Cash and cash equivalents at beginning of year | 16,096 | 23,189 | 35,659 |
Cash and cash equivalents at end of year | $ 8,990 | $ 16,096 | $ 23,189 |
Notes to Schedule I - Condensed
Notes to Schedule I - Condensed Financial Information of Sohu.com Inc. (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract] | ||
Material contingencies | No | No |
Significant provisions of long-term obligations | No | No |
Mandatory dividend or redemption requirements of redeemable stocks | No | No |
Guarantees | No | No |