Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q1 |
Entity Registrant Name | SOHU COM INC |
Entity Central Index Key | 1,104,188 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 38,916,788 |
Trading Symbol | SOHU |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 1,156,408 | $ 1,364,096 |
Restricted cash | 2,140 | 3,928 |
Short-term investments | 1,074,538 | 818,934 |
Accounts receivable, net | 217,148 | 250,468 |
Prepaid and other current assets (including $32,005 and $33,563, respectively, due from a related party as of December 31, 2017 and March 31, 2018) | 211,696 | 192,675 |
Total current assets | 2,661,930 | 2,630,101 |
Fixed assets, net | 545,419 | 529,717 |
Goodwill | 73,102 | 71,565 |
Long-term investments, net | 98,612 | 90,145 |
Intangible assets, net | 19,908 | 23,060 |
Restricted time deposits | 272 | 271 |
Prepaid non-current assets | 3,967 | 4,211 |
Other assets | 41,638 | 40,169 |
Total assets | 3,444,848 | 3,389,239 |
LIABILITIES | ||
Accounts payable (including accounts payable of consolidated variable interest entities ("VIEs") without recourse to the Company of $53,842 and $83,403, respectively, as of December 31, 2017 and March 31, 2018) | 347,955 | 288,394 |
Accrued liabilities (including accrued liabilities of consolidated VIEs without recourse to the Company of $76,883 and $66,470, respectively, as of December 31, 2017 and March 31, 2018) | 351,732 | 343,106 |
Receipts in advance and deferred revenue (including receipts in advance and deferred revenue of consolidated VIEs without recourse to the Company of $46,939 and $48,895, respectively, as of December 31, 2017 and March 31, 2018) | 135,986 | 127,758 |
Accrued salary and benefits (including accrued salary and benefits of consolidated VIEs without recourse to the Company of $8,137 and $5,972, respectively, as of December 31, 2017 and March 31, 2018) | 87,311 | 102,087 |
Taxes payable (including taxes payable of consolidated VIEs without recourse to the Company of $18,210 and $15,789, respectively, as of December 31, 2017 and March 31, 2018) | 96,742 | 96,541 |
Short-term bank loans (including short-term bank loans of consolidated VIEs without recourse to the Company of nil as of both December 31, 2017 and March 31, 2018) | 63,612 | 61,216 |
Other short-term liabilities (including other short-term liabilities of consolidated VIEs without recourse to the Company of $71,644 and $66,189, respectively, as of December 31, 2017 and March 31, 2018, and due to a related party of $31,192 and $32,370, respectively, as of December 31, 2017 and March 31, 2018) | 125,166 | 136,300 |
Total current liabilities | 1,208,504 | 1,155,402 |
Long-term accounts payable (including long-term accounts payable of consolidated VIEs without recourse to the Company of nil as of both December 31, 2017 and March 31, 2018) | 1,203 | 1,157 |
Long-term bank loans (including long-term bank loans of consolidated VIEs without recourse to the Company of nil as of both December 31, 2017 and March 31, 2018) | 127,224 | 122,433 |
Long-term taxes payable (including long-term taxes payable of consolidated VIEs without recourse to the Company of $14,293 and $14,794, respectively, as of December 31, 2017 and March 31, 2018) | 249,672 | 249,618 |
Deferred tax liabilities (including deferred tax liabilities of consolidated VIEs without recourse to the Company of $3,451 and $3,853, respectively, as of December 31, 2017 and March 31, 2018) | 95,632 | 43,392 |
Total long-term liabilities | 473,731 | 416,600 |
Total liabilities | 1,682,235 | 1,572,002 |
Commitments and contingencies | ||
SHAREHOLDERS' EQUITY | ||
Common stock: $0.001 par value per share (75,400 shares authorized; 38,898 shares and 38,917 shares, respectively, issued and outstanding as of December 31, 2017 and March 31, 2018) | 45 | 45 |
Additional paid-in capital | 1,091,487 | 1,098,455 |
Treasury stock (5,890 shares as of both December 31, 2017 and March 31, 2018) | (143,858) | (143,858) |
Accumulated other comprehensive income | 44,220 | 38,212 |
Accumulated deficit | (327,537) | (242,220) |
Total Sohu.com Inc. shareholders' equity | 664,357 | 750,634 |
Noncontrolling interest | 1,098,256 | 1,066,603 |
Total shareholders' equity | 1,762,613 | 1,817,237 |
Total liabilities and shareholders' equity | $ 3,444,848 | $ 3,389,239 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Due from a related party | $ 33,563,000 | $ 32,005,000 |
Accounts payable | 347,955,000 | 288,394,000 |
Accrued liabilities | 351,732,000 | 343,106,000 |
Receipts in advance and deferred revenue | 135,986,000 | 127,758,000 |
Accrued salary and benefits | 87,311,000 | 102,087,000 |
Taxes payable | 96,742,000 | 96,541,000 |
Short-term bank loans | 63,612,000 | 61,216,000 |
Other short-term liabilities | 125,166,000 | 136,300,000 |
Due to a related party | 32,370,000 | 31,192,000 |
Long-term accounts payable | 1,203,000 | 1,157,000 |
Long-term bank loans | 127,224,000 | 122,433,000 |
Long-term taxes payable | 249,672,000 | 249,618,000 |
Deferred tax liabilities | $ 95,632,000 | $ 43,392,000 |
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 issued (in shares) | 38,917 | 38,898 |
Common stock, shares outstanding (in shares) | 38,917 | 38,898 |
Treasury stock, shares (in shares) | 5,890 | 5,890 |
Consolidated VIEs [Member] | ||
Accounts payable | $ 83,403,000 | $ 53,842,000 |
Accrued liabilities | 66,470,000 | 76,883,000 |
Receipts in advance and deferred revenue | 48,895,000 | 46,939,000 |
Accrued salary and benefits | 5,972,000 | 8,137,000 |
Taxes payable | 15,789,000 | 18,210,000 |
Short-term bank loans | 0 | 0 |
Other short-term liabilities | 66,189,000 | 71,644,000 |
Long-term accounts payable | 0 | 0 |
Long-term bank loans | 0 | 0 |
Long-term taxes payable | 14,794,000 | 14,293,000 |
Deferred tax liabilities | $ 3,853,000 | $ 3,451,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||
Brand advertising | $ 56,254 | $ 81,412 |
Search and search-related advertising | 220,301 | 142,035 |
Subtotal of online advertising revenues | 276,555 | 223,447 |
Online games | 105,461 | 85,325 |
Others | 72,979 | 65,331 |
Total revenues | 454,995 | 374,103 |
Cost of revenues: | ||
Brand advertising | 50,611 | 80,197 |
Search and search-related advertising | 144,696 | 82,107 |
Subtotal of cost of online advertising revenues | 195,307 | 162,304 |
Online games | 17,119 | 16,505 |
Others | 48,407 | 40,070 |
Total cost of revenues | 260,833 | 218,879 |
Gross profit | 194,162 | 155,224 |
Operating expenses: | ||
Product development | 111,543 | 84,098 |
Sales and marketing | 90,273 | 90,086 |
General and administrative | 23,836 | 28,350 |
Total operating expenses | 225,652 | 202,534 |
Operating loss | (31,490) | (47,310) |
Other income, net | 12,281 | 4,099 |
Interest income (including interest income generated from a related party of $280 and $302, respectively, for the three months ended March 31, 2017 and March 31, 2018) | 7,808 | 4,471 |
Interest expense (including interest expense generated from a related party of $177 and $172, respectively, for the three months ended March 31, 2017 and March 31, 2018) | (3,081) | (175) |
Exchange difference | (9,340) | (766) |
Loss before income tax expense | (23,822) | (39,681) |
Income tax expense | 63,379 | 10,672 |
Net loss | (87,201) | (50,353) |
Less: Net income attributable to the noncontrolling interest shareholders | 5,617 | 17,895 |
Net loss attributable to Sohu.com Inc. | (92,818) | (68,248) |
Net loss | (87,201) | (50,353) |
Foreign currency translation adjustments | 37,031 | 4,968 |
Change in unrealized loss for equity investments with readily determinable fair values | 0 | (678) |
Other comprehensive income | 37,031 | 4,290 |
Comprehensive loss | (50,170) | (46,063) |
Less: Comprehensive income attributable to noncontrolling interest shareholders | 29,139 | 20,533 |
Comprehensive loss attributable to Sohu.com Inc. | $ (79,309) | $ (66,596) |
Basic net loss per share attributable to Sohu.com Inc. | $ (2.39) | $ (1.76) |
Shares used in computing basic net loss per share attributable to Sohu.com Inc. | 38,904 | 38,811 |
Diluted net loss per share attributable to Sohu.com Inc. | $ (2.39) | $ (1.77) |
Shares used in computing diluted net loss per share attributable to Sohu.com Inc. | 38,904 | 38,811 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Interest income from a related party | $ 302 | $ 280 |
Interest expense from a related party | $ 172 | $ 177 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (87,201) | $ (50,353) |
Adjustments to reconcile net income /(loss) to net cash provided by operating activities: | ||
Amortization of intangible assets and purchased video content in prepaid expense | 15,876 | 35,777 |
Depreciation | 23,399 | 19,360 |
Share-based compensation expense | (2,344) | 3,220 |
Impairment of other intangible assets and other assets | 1,127 | 359 |
Investment loss /(gain) from equity investments | (1,975) | 49 |
Provision for allowance for doubtful accounts | 295 | 2,035 |
Loss /(gain) from sale of equity investments | (134) | 523 |
Change in fair value of financial instruments | (9,258) | (2,064) |
Others | 53 | (328) |
Changes in assets and liabilities, net of acquisition: | ||
Accounts receivable | 41,730 | 15,723 |
Prepaid and other assets | (8,986) | (924) |
Accounts payable | 42,240 | 15,801 |
Receipts in advance and deferred revenue | 3,258 | (4,205) |
Taxes payable | (4,849) | (1,152) |
Deferred tax | 49,901 | 4,204 |
Accrued liabilities and other short-term liabilities | (44,502) | (69,695) |
Net cash provided by /(used in) operating activities | 18,630 | (31,670) |
Cash flows from investing activities: | ||
Purchase of fixed assets | (17,266) | (10,502) |
Purchase of intangible and other assets | (8,588) | (23,316) |
Purchase of long-term investments | (16,971) | (2,190) |
Return of funds from a third party | 0 | 4,928 |
Proceeds from financial instruments | 444,469 | 87,317 |
Purchase of financial instruments | (663,428) | (119,024) |
Proceeds received from sale of equity investments, net | 12,070 | 0 |
Other cash proceeds related to investing activities | 371 | 31 |
Net cash used in investing activities | (249,343) | (62,756) |
Cash flows from financing activities: | ||
Exercise of share-based awards in subsidiaries | 4 | 450 |
Repurchase of Sogou Pre-IPO Class A Ordinary Shares from noncontrolling shareholders | 0 | (3,190) |
Net cash provided by /(used in) financing activities | 4 | (2,740) |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 21,233 | 3,474 |
Reclassification of cash and cash equivalents from assets held for sale | 0 | 11,684 |
Net decrease in cash and cash equivalents, and restricted cash | (209,476) | (82,008) |
Cash and cash equivalents, and restricted cash, at beginning of period | 1,368,024 | 1,050,957 |
Cash and cash equivalents, and restricted cash, at end of period | 1,158,548 | 968,949 |
Supplemental cash flow disclosures: | ||
Barter transactions recognized in revenue | 339 | 3,185 |
Supplemental schedule of non-cash investing activity: | ||
Changes in payables and other liabilities related to fixed assets and intangible assets additions | $ 19,032 | $ 8,084 |
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 /Accumulated Deficit [Member] | Noncontrolling Interest [Member] | |
Beginning balance at Dec. 31, 2016 | $ 1,557,795 | $ 45 | $ 821,867 | $ (143,858) | $ 3,220 | $ 312,306 | $ 564,215 | |
Share-based compensation expense | 3,220 | 0 | (2,641) | 0 | 0 | 0 | 5,861 | |
Settlement /(Adjustment) of share-based awards in subsidiaries | 450 | 0 | 5,262 | 0 | 0 | 0 | (4,812) | |
Repurchase of Sogou Pre-IPO Class A Ordinary Shares from noncontrolling shareholders | (3,190) | 0 | 0 | 0 | 0 | 0 | (3,190) | |
Disposal of noncontrolling interest | (80) | 0 | 0 | 0 | 0 | 0 | (80) | |
Net income /(loss) attributable to Sohu.com Inc. and noncontrolling interest shareholders | (50,353) | 0 | 0 | 0 | 0 | (68,248) | 17,895 | |
Accumulated other comprehensive income /(loss) | 4,290 | 0 | 0 | 0 | 1,652 | 0 | 2,638 | |
Other | 187 | 0 | 0 | 0 | 0 | 0 | 187 | |
Ending balance at Mar. 31, 2017 | 1,512,319 | 45 | 824,488 | (143,858) | 4,872 | 244,058 | 582,714 | |
Beginning balance at Dec. 31, 2017 | 1,817,237 | 45 | 1,098,455 | (143,858) | 38,212 | (242,220) | 1,066,603 | |
Impact of adoption of new accounting standards | [1] | 0 | 0 | 0 | 0 | (7,501) | 7,501 | 0 |
Share-based compensation expense | (2,344) | 0 | (4,166) | 0 | 0 | 0 | 1,822 | |
Settlement /(Adjustment) of share-based awards in subsidiaries | 3 | 0 | (2,802) | 0 | 0 | 0 | 2,805 | |
Disposal of noncontrolling interest | (2,113) | 0 | 0 | 0 | 0 | 0 | (2,113) | |
Net income /(loss) attributable to Sohu.com Inc. and noncontrolling interest shareholders | (87,201) | 0 | 0 | 0 | 0 | (92,818) | 5,617 | |
Accumulated other comprehensive income /(loss) | 37,031 | 0 | 0 | 0 | 13,509 | 0 | 23,522 | |
Ending balance at Mar. 31, 2018 | $ 1,762,613 | $ 45 | $ 1,091,487 | $ (143,858) | $ 44,220 | $ (327,537) | $ 1,098,256 | |
[1] | For details see Note 6 - Fair Value of Financial Instruments - Equity Investments |
The Company and Basis of Presen
The Company and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
THE COMPANY AND BASIS OF PRESENTATION [Abstract] | |
The Company and Basis of Presentation | 1. THE COMPANY AND BASIS OF PRESENTATION 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 Peoples 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 these condensed consolidated financial statements, 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 an innovator in search and a leader in Chinas Internet industry. With a mission to make it easy to communicate and get information, Sogou has grown to become the second largest search engine by mobile queries and the fourth largest Internet company by monthly active users (MAU) in China, according to iResearch. 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 Legacy TLBB, and engages primarily in the development, operation and licensing of online games for PCs and mobile devices. Most of the Groups operations are conducted through the Groups China-based subsidiaries and VIEs. Sogou completed its IPO on the NYSE in November 2017 (trading under the symbol SOGO) and Changyou completed its IPO on NASDAQ in April 2009 (trading under the symbol CYOU). As Sohu.com Inc. is the controlling shareholder of both Sogou and Changyou, Sohu.com Inc. consolidates Sogou and Changyou in its consolidated financial statements, and recognizes noncontrolling interests reflecting economic interests in Sogou and Changyou held by shareholders other than Sohu.com Inc. Through the operation of Sohu, Sogou and Changyou, the Sohu Group generates online advertising revenues, including brand advertising revenues and search and search-related advertising revenues; online games revenues; and other revenues. Online advertising and online games are the Sohu Groups core businesses. Most of the Sohu Groups operations are conducted through its China-based subsidiaries and VIEs. Sohus Business Brand Advertising Business Sohus main business is the brand advertising business, which offers to users, over Sohus 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 Sohus 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 Groups consolidated statements of comprehensive income. Other Sohu Business Sohu also engages in the other business, which consists primarily of paid subscription services, interactive broadcasting services, content provided through the platforms of the three main telecommunications operators in China, and sub-licensing Sogous Business Search and Search-related Business The search and search-related business consists primarily of search and search-related advertising services offered by Sogou. Search and search-related advertising services enable advertisers promotional links to be displayed on Sogous search results pages and other Internet properties and third parties Internet properties where the links are relevant to the subject and content of searches and such properties. Sogous advertising services expand distribution of advertisers promotional links and advertisements by leveraging traffic on third parties Internet properties, including Web content, software, and mobile applications. The search and search-related business benefits from Sogous collaboration with Tencent Holdings Limited (together with its subsidiaries, Tencent), which provides Sogou access to traffic and content generated from products and services provided by Tencent. Revenues generated by the search and search-related business are classified as search and search-related advertising revenues in the Sohu Groups consolidated statements of comprehensive income. Other Sogou Business Sogou also offers Internet value-added services (IVAS), primarily with respect to the operation of Web games and mobile games developed by third parties and the provision of online reading services, and offers other products and services, including smart hardware products. Revenues generated by Sogou from other business are classified as other revenues in the Sohu Groups consolidated statements of comprehensive income. Initial Public Offering of Sogou On November 13, 2017, Sogou completed its IPO on the New York Stock Exchange (the NYSE), trading under the symbol SOGO. Sogous IPO consisted of American depositary shares (ADSs), with each ADS representing one Class A Ordinary Share. Sogou issued and sold in the IPO 50,643,856 Class A Ordinary Shares represented by 50,643,856 ADSs, including 5,643,856 Class A Ordinary Shares represented by 5,643,856 ADSs sold pursuant to the exercise of the underwriters over-allotment option. Proceeds to Sogou from the IPO were approximately $622.1 million, after deducting underwriting discounts and commissions and offering expenses. In the fourth quarter of 2017, Sohu recognized a one-time paid-in Sogous Ordinary Shares are divided into Class A Ordinary Shares and Class B Ordinary Shares. Holders of Class A Ordinary Shares and holders of Class B Ordinary Shares have identical rights with the exception of voting and conversion rights. Each Class A Ordinary Share is entitled to one vote per share and is not convertible. Each Class B Ordinary Share is entitled to ten votes per share and is convertible into one Class A Ordinary Share at any time. Voting Agreement between Sohu and Tencent Pursuant to a voting agreement among Sohu, Tencent Holdings Limited (Tencent), and Sogou (the Sogou Voting Agreement) that took effect upon the completion of Sogous IPO and Sogous amended and restated memorandum and articles of association, Sohu has the right to appoint a majority of Sogous Board of Directors, and Sohu continues to consolidate Sogou in Sohus financial statements and provide for noncontrolling interests reflecting ordinary shares in Sogou held by shareholders other than Sohu. Sogous Share Structure As of March 31, 2018, Sogou had a combined total of 397,183,397 Class A Ordinary Shares and Class B Ordinary Shares issued and outstanding, consisting of: (i) Sohu: 127,200,000 Class B Ordinary Shares held by Sohu for its own account, and 3,717,250 Class A Ordinary Shares held by Sohu for the purpose of issuance upon the exercise of outstanding share-based awards and future share-based awards; (ii) Tencent: 151,557,875 Class B Ordinary Shares; (iii) Photon Group Limited (Photon), an investment vehicle of the Sohu Groups Chairman and Chief Executive Officer Charles Zhang: 32,000,000 Class A Ordinary Shares; and (iv) Shareholders other than Sohu, Tencent, and Photon: 82,708,272 Class A Ordinary Shares. The totals of Sogou outstanding shares listed above include 10,327,500 Class A Ordinary Shares that are outstanding for legal purposes, but have been determined to be Sogou treasury stock for accounting purposes. Changyous Business Changyous business lines consist of the online game business; the platform channel business, which consists primarily of online advertising and IVAS; and the cinema advertising business. Online Game Business Changyous online game business offers PC games and mobile games to game players. All of Changyous games are operated under the item-based revenue model, meaning that game players can play the games for free, but can choose to pay for virtual items, which are non-physical PC Games PC games are interactive online games that are accessed and played simultaneously by hundreds of thousands of game players through personal computers and require that local client-end client-end Mobile Games Mobile games are played on mobile devices and require an Internet connection. In the second quarter of 2017, Changyou launched a new mobile game, Legacy TLBB, which is operated by Tencent under license from Changyou. For the three months ended March 31, 2018, revenues from Legacy TLBB were $28.2 million, accounting for approximately 27% of Changyous online game revenues, approximately 21% of Changyous total revenues, and approximately 6% of the Sohu Groups total revenues. Web Games Prior to the sale of Shenzhen 7Road Technology Co., Ltd. (Shenzhen 7Road) in August 2015, Changyous online games also included Web games, which are online games that are played through a Web browser with no local game software installation requirements. Following the sale of Shenzhen 7Road, Web games became an insignificant part of Changyous online game business. Platform Channel Business Changyous platform channel business consists primarily of the operation of the 17173.com Website and RaidCall. Prior to the sale of MoboTap in March 2018, Changyous platform channel business also included MoboTap. 17173.com Website The 17173.com Website is one of the leading information portals in China, and provides news, electronic forums, online videos and other information services regarding online games to game players. All revenues generated by the 17173.com Website are classified as brand advertising revenues. RaidCall RaidCall provides online music and entertainment services, primarily in Taiwan. IVAS revenues generated by RaidCall are classified as other revenues in the Companys consolidated statements of comprehensive income. MoboTap MoboTap provides (a) software applications for PCs and mobile devices through the Dolphin Browser, which is a gateway to a host of user activities on mobile devices, with the majority of its users based in overseas markets, and (b) domestic online card and board games. IVAS revenues generated by the Dolphin Browser are classified as other revenues and online card and board games revenues generated by MoboTap are classified as online game revenues in the Companys consolidated statements of comprehensive income. Changyou disposed of MoboTap for $3.0 million in the first quarter of 2018. 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 Changyous Share Structure As of March 31, 2018, Changyou had a combined total of 105,836,420 Class A and Class B Ordinary Shares issued and outstanding, consisting of: (i) Sohu.com Inc.: 1,500,000 Class A Ordinary Shares and 70,250,000 Class B Ordinary Shares; and (ii) Public shareholders: 34,086,420 Class A Ordinary Shares. As of March 31, 2018, Sohu.com Inc. held approximately 68% of the combined total of Changyous outstanding ordinary shares, and controlled approximately 95% of the total voting power in Changyou. As Changyous controlling shareholder, Sohu.com Inc. consolidates Changyou in its financial statements and provides for noncontrolling interests reflecting ordinary shares in Changyou held by shareholders other than Sohu.com Inc. Basis of Consolidation and Recognition of Noncontrolling Interest The Sohu Groups consolidated financial statements include the accounts of Sohu.com Inc. and its subsidiaries and consolidated VIEs. All intra-Group transactions are eliminated. VIE Consolidation The Sohu Groups 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 Groups consolidated financial statements primarily consist of noncontrolling interests for Sogou and Changyou. Noncontrolling Interest for Sogou Sogou completed its IPO on the NYSE in November 2017. Prior to the completion of Sogous IPO, Sohu.com Inc. controlled the election of a majority of the Board of Directors of Sogou pursuant to a shareholders agreement that expired upon completion of the IPO. Following the completion of Sogous IPO, pursuant to the Sogou Voting Agreement and Sogous amended and restated memorandum and articles of association, Sohu.com Inc. still has the right to appoint a majority of Sogous Board of Directors. As Sogous controlling shareholder, the Sohu Group consolidates Sogou in its consolidated financial statements, and recognizes noncontrolling interest reflecting economic interests in Sogou held by shareholders other than it (the Sogou noncontrolling shareholders). Sogous net income /(loss) attributable to the Sogou noncontrolling shareholders is recorded as noncontrolling interest in its consolidated statements of comprehensive income. Noncontrolling Interest Recognition before Sogous IPO Based on the principles of allocation of Sogous profit and loss set forth below, Sogous cumulative results of operations attributable to the Sogou noncontrolling shareholders, along with changes in shareholders equity/(deficit) and adjustments for share-based compensation expense in relation to those share-based awards that were unvested and vested but not yet settled and the Sogou noncontrolling shareholders investments in Sogou Series A Preferred Shares outstanding before Sogous IPO (Sogou Pre-IPO Pre-IPO Pre-IPO Pre-IPO Pre-IPO Principles of Allocation of Sogous Profit and Loss - By virtue of the terms of the Sogou Pre-IPO Pre-IPO Pre-IPO (i) net losses were allocated to holders of the Sogou Pre-IPO Pre-IPO (ii) additional net losses were allocated to holders of the Sogou Pre-IPO (iii) additional net losses were allocated to the holder of the Sogou Pre-IPO (iv) further net losses were allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou. Net income from Sogou was allocated in the following order before Sogous IPO: (i) net income was allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou until their basis in Sogou increased to zero; (ii) additional net income was allocated to the holder of the Sogou Pre-IPO (iii) additional net income was allocated to holders of the Sogou Pre-IPO (iv) further net income was allocated to holders of the Sogou Pre-IPO Pre-IPO (v) further net income was allocated between Sohu and noncontrolling shareholders based on their shareholding percentage in Sogou. Noncontrolling Interest Recognition after Sogous IPO Sogous cumulative results of operations attributable to the Sogou noncontrolling shareholders, based on their share of the economic interest in Sogou, along with changes in shareholders equity and adjustment for share-based compensation expense in relation to share-based awards that are unvested and vested but not yet settled and adjustment for changes in the Sohu Groups ownership percentage in Sogou, are recorded as noncontrolling interest in the Sohu Groups consolidated balance sheets. Noncontrolling Interest for Changyou Changyou is a public company listed on the NASDAQ Global Select Market. As of March 31, 2018, Sohu.com Inc. held approximately 68% of the combined total of Changyous outstanding ordinary shares, and controlled approximately 95% of the total voting power in Changyou. As Changyous 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). Changyous net income /(loss) attributable to the Changyou noncontrolling shareholders is recorded as noncontrolling interest in the Sohu Groups consolidated statements of comprehensive income, based on the noncontrolling shareholders share of the economic interest in Changyou. Changyous 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 Groups consolidated balance sheets. Basis of Presentation These financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q S-X. 10-K The accompanying unaudited condensed consolidated interim financial statements reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the results for the interim periods presented. Results for the three months ended March 31, 2018 are not necessarily indicative of the results expected for the full fiscal year or for any future period. Revenue Recognition Adoption of ASC 606 On January 1, 2018, the Sohu Group adopted ASC 606, applying the modified retrospective method to contracts that were not completed as of January 1, 2018. Adoption did not have a material impact on accumulated deficit as of January 1, 2018. Results for reporting periods beginning on or after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Groups historic accounting under ASC 605. Under ASC 605, advertising-for-advertising advertising-for-advertising The following table illustrates the effect of the adoption of ASC 606 by presenting a comparison of selected line items from the Groups condensed consolidated statement of comprehensive income for the three months ended March 31, 2018, as actually reported and as they would have been reported under ASC 605, without the adoption of ASC 606 (in thousands, except per share data): As reported Without adoption of Effect of change Higher/(Lower) Revenue-Online advertising-Brand advertising $ 56,254 55,913 341 Revenue-Online advertising-Search and search related advertising 220,301 213,987 6,314 Cost of revenue- Online advertising-Search and search related advertising 144,696 138,955 5,741 Gross profit 194,162 193,248 914 Operating expenses- Sales and marketing 90,273 89,359 914 Operating loss (31,490 ) (31,490 ) 0 Income tax expenses 63,379 63,379 0 Net loss (87,201 ) (87,201 ) 0 Basic net loss per share attributable to Sohu.com Inc. (2.39 ) (2.39 ) 0 Diluted net loss per share attributable to Sohu.com Inc. (2.39 ) (2.39 ) 0 The adoption of ASC 606 did not change the Groups condensed consolidated balance sheet, condensed consolidated statement of cash flows, or condensed consolidated statement of changes in equity for the three months ended March 31, 2018. Revenues are recognized when control of the promised goods or services is transferred to the Groups customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services. The recognition of revenues involves certain management judgments, including estimated lives of virtual items purchased by game players, the estimation of the fair value of an advertising-for-advertising licensed-out The following table presents the Groups revenues disaggregated by products and services (unaudited): Three Months Ended March 31, 2018 (in thousands) Three Months Ended March 31, 2017 (in thousands) Sohu Sogou Changyou Total Sohu Sogou Changyou Total Brand advertising: Sohu Media Portal $ 30,674 0 0 30,674 $ 36,844 0 0 36,844 Sohu Video 12,635 0 0 12,635 21,696 0 0 21,696 Focus 7,868 0 0 7,868 17,018 0 0 17,018 17173.com Website 0 0 5,078 5,078 0 0 5,854 5,854 Search and search related advertising 0 220,301 0 220,301 0 142,035 0 142,035 Online games: PC games 0 0 59,425 59,425 0 0 64,881 64,881 Mobile games 0 0 45,735 45,735 0 0 19,838 19,838 Other games 0 0 301 301 0 0 606 606 Others: Paid subscription services 9,257 0 0 9,257 6,316 0 0 6,316 Cinema advertising business 0 0 24,870 24,870 0 0 24,600 24,600 Others 9,305 27,749 1,797 38,851 10,090 20,234 4,091 34,415 Total $ 69,739 248,050 137,206 454,995 $ 91,964 162,269 119,870 374,103 As noted above, in accordance with the modified retrospective method upon adoption of ASC 606, prior period amounts have not been adjusted. Online Advertising Revenues Online advertising revenues include revenues from brand advertising services as well as search and search-related advertising services. Certain customers may receive sales rebates, which are accounted for as variable consideration. The Group estimates annual expected revenue volume of each individual agent with reference to their historical results. The sales rebate will reduce revenues recognized. The Group recognizes revenue for the amount of fees it receives from its advertisers, after deducting sales rebates and net of value-added tax (VAT) and related surcharges. The Group believes that there will not be significant changes to its estimates of variable consideration. Brand Advertising Revenues Revenue Recognition of Multiple Performance Obligations The Groups contracts with customers may include multiple performance obligations. For such arrangements, the Group allocates revenues to each performance obligation based on its relative standalone selling price. The Group generally determines standalone selling prices of each distinct performance obligation based on the prices charged to customers when sold on a standalone basis. Where standalone selling price is not directly observable, the Group generally estimate selling prices based on when they are sold to customers of a similar nature and geography. Most of such contracts have all performance obligations completed within the same quarter. Pricing 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 Group has three main types of pricing models, consisting of the Fixed Price model, the Cost Per Impression (CPM) model, and the Cost Per click (CPC) model. (i) Fixed Price model Under the Fixed Price model, a contract is signed to establish a fixed price for the advertising services to be provided. Given the advertisers benefit from the displayed advertising evenly, the Group recognizes revenue on a straight-line basis over the period of display, provided all revenue recognition criteria have been met. (ii) CPM model Under the CPM model, the unit price for each qualifying display is fixed and stated in the contract with the advertiser. A qualifying display is defined as the appearance of an advertisement, where the advertisement meets criteria specified in the contract. Given that the fees are priced consistently throughout the contract and the unit prices are consistent with the Groups pricing practices with similar customers, the Group recognizes revenue which are based on the fixed unit prices and the number of qualifying displays upon occurrence of display, provided and all revenue recognition criteria have been met. (iii) CPC model Under the CPC model, there is no fixed price for advertising services stated in the contract with the advertiser and the unit price for each click is auction-based. The Group charges advertisers on a per-click Search and Search-related Advertising Revenues Search and search-related services consist primarily of search and search-related advertising services offered by Sogou. Pay-for-click Pay for click services enable advertisers promotional links to be displayed on Sogou search result pages and other Internet properties and third parties Internet properties where the links are relevant to the subject and content of searches and such properties. For pay for click services, Sogou introduces Internet users to its advertisers through auction-based pay-for-click per-click pay-for-click Other Online Advertising Services Other online advertising services mainly consist of displaying advertisers promotional links on Sogous Internet properties. Revenue for time-based advertising is normally recognized on a straight-line basis over the advertising period, provided Sogous obligations under the contract and all revenue recognition criteria have been met. Revenue for performance-based advertising services is recognized when Sogous performance obligations under the contract have been satisfied. Sogous online advertising services expand distribution of advertisers promotional links and advertisements by leveraging traffic on third parties Internet properties, including Web content, software, and mobile applications. Sogou is the primary obligor to the advertisers and payments made to operators of third-party Internet properties are included in traffic acquisition costs, which are included in cost of search and search-related advertising revenues. Online Game Revenues Changyous online game revenues are generated primarily from its self-operated and licensed-out in-game 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 net of VAT and discounts to game card distributors where applicable. Changyou obtains revenues from the sale of in-game PC Games Proceeds from Changyous self-operated PC games are collected from players and third-party game card distributors through sales of Changyous game points on its online payment platform and prepaid game cards. Changyous self-operated PC games are either developed in house or licensed from third-party developers. For licensed PC games, Changyou remits a pre-agreed Mobile Games Self-operated Mobile Games For self-operated mobile games, Changyou sells game points to its game players via third-party mobile APP stores. The mobile APP stores in turn pay Changyou proceeds after deducting their share of pre-agreed Changyous self-operated mobile games are either developed in house or licensed from or jointly developed with third-party developers. For licensed and jointly-developed mobile games, Changyou remits a pre-agreed Licensed Out Mobile Games Changyou also authorizes third parties to operate its mobile games. Licensed out games mainly include mobile games developed in house Legacy TLBB and mobile games jointly developed with third-party developers. For mobile games developed in house, the license arrangements also include post-sale services. Changyou receives monthly revenue-based royalty payments from all the third-party licensee operators. Changyou receives additional up-front up-front pre-agreed Other Revenues Sohu Other revenues attributable to Sohu consist primarily of revenues from paid subscription services, interactive broadcasting services, content provided through the platforms of the three main telecommunications operators in China, and sub-licensing Sogou Other revenues attributable to Sogou are IVAS revenues, which are mainly from the operation of Web games and mobile games developed by third parties and the provision of online reading services, and revenues from other products and services, including smart hardware products. Changyou Other revenues attributable to Changyou are primarily from its cinema advertising business and from 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 to Changyou, which takes inventory risk under the 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. As Changyou is considered to be the principal in the arrangements with the theaters, the fees paid to the theaters are recognized as cost of revenues. Changyou provides IVAS primarily through software applications for PCs and mobile devices offered by RaidCall. Revenues from IVAS are recognized during the period the services are rendered or items are consumed under the gross method, as Changyou is the principal obligor for provision of the services. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent amounts invoiced and revenue recognized prior to invoicing, when the Group has satisfied its performance obligations and has the unconditional right to payment. The allowance for doubtful accounts and authorized credits is estimated based upon the Groups assessment of various factors, including historical experience, the age of the accounts receivable balances, current economic conditions and other factors that may affect the Groups customers ability to pay. Contract assets as of March 31, 2018 were not material. The allowance for doubtful accounts and authorized credits was $5.5 million and $5.7 million, respectively, as of March 31, 2018 and December 31, 2017. Receipts in advance and deferred revenue related to unsatisfied performance obligations at the end of the period and consist of fees received from the game players with online gaming business and advertisers with searching and searching related advertising business. Due to the generally short-term duration of the contracts, the majority of the performance obligations are satisfied in the following reporting period. The amount of revenue recognized that was included in the receipts in advance and deferred revenue balance at the beginning of the period was $104.3 million for the three month periods ended March 31, 2018. There is no significant change in contract liability balance during the first quarter of 2018. Revenue recognized in the current period from performance obligations related to prior periods was not material. Practical Expedients The Group has used the following practical expedients as allowed under ASC 606: (i) The transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, has not been disclosed as substantially all of the Groups contracts have a duration of one year or less. (ii) Payment terms and conditions vary by contract type, although terms generally include a requirement of prepayment or payment within one year or less. In instances where the timing of revenue recognition differs from the timing of invoicing, the Group has determined that its contracts generally do not include a significant financing component. (iii) The Group applied the portfolio approach in determining the commencement date of consumption and the estimated lives of virtual items for the recongnition of games revenue given that the effect of applying a portfolio approach to a group game players behaviors would not differ materially from considering each one of them individually. (iv) The Group generally expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within sales and marketing expenses. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
SEGMENT INFORMATION [Abstract] | |
Segment Information | 2. SEGMENT INFORMATION The Sohu Groups 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 Groups 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): Three Months Ended March 31, 2017 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 92,492 $ 162,284 $ 119,870 $ (543 ) $ 374,103 Segment cost of revenues (92,202 ) (87,454 ) (39,088 ) 51 (218,693 ) Segment gross profit 290 74,830 80,782 (492 ) 155,410 SBC (2) in cost of revenues (159 ) (3 ) (24 ) 0 (186 ) Gross profit 131 74,827 80,758 (492 ) 155,224 Operating expenses: Product development (3) (25,979 ) (32,849 ) (24,404 ) 1,461 (81,771 ) Sales and marketing (1) (3) (55,051 ) (24,765 ) (10,536 ) 931 (89,421 ) General and administrative (3) (10,905 ) (4,635 ) (8,791 ) 32 (24,299 ) SBC (2) in operating expenses 2,806 (4,340 ) (5,509 ) 0 (7,043 ) Total operating expenses (89,129 ) (66,589 ) (49,240 ) 2,424 (202,534 ) Operating profit /(loss) (88,998 ) 8,238 31,518 1,932 (47,310 ) Other income /(loss) (3) 3,741 23 2,267 (1,932 ) 4,099 Interest income (4) 1,671 1,658 6,416 (5,274 ) 4,471 Interest expense (4) (4,376 ) 0 (1,073 ) 5,274 (175 ) Exchange difference 615 (639 ) (742 ) 0 (766 ) Income /(loss) before income tax expense (87,347 ) 9,280 38,386 0 (39,681 ) Income tax expense (1,195 ) (1,052 ) (8,425 ) 0 (10,672 ) Net income /(loss) $ (88,542 ) $ 8,228 $ 29,961 $ 0 $ (50,353 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou and Changyou segments. Note (2): SBC stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): The elimination represents interest income /(expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. Three Months Ended March 31, 2018 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 69,928 $ 248,384 $ 137,205 $ (522 ) $ 454,995 Segment cost of revenues (64,539 ) (153,804 ) (42,954 ) 14 (261,283 ) Segment gross profit 5,389 94,580 94,251 (508 ) 193,712 SBC (2) in cost of revenues 657 (219 ) 12 0 450 Gross profit 6,046 94,361 94,263 (508 ) 194,162 Operating expenses: Product development (3) (34,566 ) (43,448 ) (34,728 ) 1,914 (110,828 ) Sales and marketing (1) (3) (48,890 ) (26,707 ) (15,436 ) 671 (90,362 ) General and administrative (3) (11,409 ) (5,879 ) (9,169 ) 101 (26,356 ) SBC (2) in operating expenses 3,541 (4,060 ) 2,413 0 1,894 Total operating expenses (91,324 ) (80,094 ) (56,920 ) 2,686 (225,652 ) Operating profit /(loss) (85,278 ) 14,267 37,343 2,178 (31,490 ) Other income /(loss) (3) 4,632 4,386 5,441 (2,178 ) 12,281 Interest income (4) 2,462 3,467 9,169 (7,290 ) 7,808 Interest expense (4) (8,849 ) 0 (1,522 ) 7,290 (3,081 ) Exchange difference (1,863 ) (4,666 ) (2,811 ) 0 (9,340 ) Income /(loss) before income tax expense (88,896 ) 17,454 47,620 0 (23,822 ) Income tax expense (176 ) (2,144 ) (61,059 ) 0 (63,379 ) Net income /(loss) $ (89,072 ) $ 15,310 $ (13,439 ) $ 0 $ (87,201 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou and Changyou segments. Note (2): SBC stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): The elimination represents interest income /(expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. As of December 31, 2017 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 98,750 $ 694,207 $ 571,139 $ 0 $ 1,364,096 Accounts receivable, net 86,801 72,117 91,636 (86 ) 250,468 Fixed assets, net 200,561 139,209 189,947 0 529,717 Total assets (1) $ 1,124,759 $ 1,321,036 $ 1,922,023 $ (978,579 ) $ 3,389,239 Note (1): The elimination for segment assets mainly consists of elimination of intra-Group loans between the Sohu segment and the Changyou segment, and elimination of long-term investments in subsidiaries and consolidated VIEs. As of March 31, 2018 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 74,932 $ 352,158 $ 729,318 $ 0 $ 1,156,408 Accounts receivable, net 81,408 55,709 80,121 (90 ) 217,148 Fixed assets, net 208,196 142,766 194,457 0 545,419 Total assets (1) $ 1,065,859 $ 1,374,426 $ 2,008,826 $ (1,004,263 ) $ 3,444,848 Note (1): The elimination for segment assets mainly consists of elimination of intra-Group 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 | 3 Months Ended |
Mar. 31, 2018 | |
SHARE-BASED COMPENSATION EXPENSE [Abstract] | |
Share-Based Compensation Expense | 3. 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. Sohu (excluding Sohu Video), Sogou, and Changyou Share-based Awards For Sohu (excluding Sohu Video) stock options that Sohu granted before 2006 and Sohu restricted share units, Sogou share-based awards, and Changyou share-based awards under the Changyou 2008 Share Incentive Plan, 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 Tencent restricted share units that Tencent had granted to employees who transferred to Sogou with the Soso search and search-related businesses, share-based compensation expense is recognized in the consolidated statements of comprehensive income based on the then-current fair value at each reporting date. Options for the purchase of Sohu common stock contractually granted under the Sohu 2010 Stock Incentive Plan and 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, 718-10-55, re-measured re-measured For Sogou Pre-IPO Class A Ordinary Shares repurchased by Sogou from the former President and Chief Financial Officer of the Sohu Group in the first quarter of 2017, share-based compensation expense is recognized by the Sohu Group in the consolidated statements of comprehensive income in an amount equal to the excess of the repurchase price over the fair value of the Sogou Pre-IPO Sohu Video Share-based Awards On January 4, 2012, Sohu Video, the holding entity of Sohus 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 March 31, 2018, grants of options for the purchase of 16,368,200 ordinary shares of Sohu Video had been contractually made, of which options for the purchase of 4,972,800 ordinary shares were vested. For purposes of ASC 718-10-25, 718-10-55, re-measured, re-measure, Share-based Compensation Expense Recognition Share-based compensation expense was recognized in costs and expenses for the three months ended March 31, 2017 and 2018 as follows (in thousands): Three Months Share-based compensation expense 2017 2018 Cost of revenues $ 186 $ (450 ) Product development expenses 2,327 715 Sales and marketing expenses 665 (89 ) General and administrative expenses 4,051 (2,520 ) $ 7,229 $ (2,344 ) Share-based compensation expense was recognized for share awards of Sohu (excluding Sohu Video), Sogou, Changyou and Sohu Video as follows (in thousands): Three Months Share-based compensation expense 2017 2018 For Sohu (excluding Sohu Video) share-based awards $ (2,443 ) $ (4,049 ) For Sogou share-based awards (2) 4,337 4,279 For Changyou share-based awards 5,533 (2,425 ) For Sohu Video share-based awards (1) (198 ) (149 ) $ 7,229 $ (2,344 ) Note (1): The negative amount resulted from re-measured Note (2): 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 and search-related businesses and compensation expense of $4.0 million recognized in the first quarter of 2017 in connection with Sogous repurchase of Sogou Pre-IPO Pre-IPO There was no capitalized share-based compensation expense for the three months ended March 31, 2018 and 2017. For details of the share-based compensation expenses of the Sohu Group, see Note 11. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Related Party Transactions | 4. RELATED PARTY TRANSACTIONS Under an agreement between Sohu and Fox Financial Technology Group Limited (Fox Financial, formerly known as SoEasy Internet Finance Group Limited) entered into in August 2014, Sohu invested $4.8 million and $16.1 million, respectively, in Fox Financial in August 2014 and April 2015. In February 2016, Sohu invested an additional $10.5 million in Fox Financial, see Note 6 Fair Value Measurements - Other Financial Instruments - Long-term Investments. Changyous Loan Arrangements with Fox Financial Commencing in April 2015, certain subsidiaries of Changyou and certain subsidiaries of Fox Financial entered into a series of loan agreements pursuant to which the subsidiaries of Changyou are entitled to draw down HK dollar-denominated or U.S. dollar-denominated loans from the Fox Financial subsidiaries and the Fox Financial subsidiaries are entitled to draw down equivalent RMB-denominated As of March 31, 2018, Changyou had U.S. dollar-denominated loans payable to Fox Financial in a total amount of approximately $30.8 million, which was recorded in other short-term liabilities, and RMB-denominated |
Intra-Group Loan and Share Pled
Intra-Group Loan and Share Pledge Agreement | 3 Months Ended |
Mar. 31, 2018 | |
INTRA-GROUP LOAN AND SHARE PLEDGE AGREEMENT [Abstract] | |
Intra-Group Loan and Share Pledge Agreement | 5. INTRA-GROUP LOAN AND SHARE PLEDGE AGREEMENT On October 24, 2016, Beijing Sohu New Media Information Technology Co., Ltd. (Sohu Media), a subsidiary of Sohu, entered into a loan agreement (the Loan Agreement) with Beijing AmazGame Age Internet Technology Co., Ltd. (AmazGame), a subsidiary of Changyou, pursuant to which Sohu Media may borrow from time to time from AmazGame up to RMB1.00 billion (or approximately $159.0 million). Principal amounts outstanding under the Loan Agreement bear interest at an annual rate of 6%. The outstanding principal of each advance will be due one year from the date of the advance, subject to extension for an additional year with the consent of AmazGame. 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 11,386,228 Class B ordinary shares of Changyou held by Sohu Game. The number of Changyou Class B ordinary shares pledged by Sohu Game to Changyou is subject to upward adjustment from time to time while amounts are outstanding under the Loan Agreement if the price of Changyous American depositary shares (ADSs) on the NASDAQ Global Select Market drops for at least 10 consecutive trading days by an amount of 20% or more from such price as of the date of the Share Pledge Agreement, and is subject to further upward adjustment in the event of any additional incremental drops of 20% or more in the price of Changyous ADSs during 10 consecutive trading days. The share pledge agreement gives 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 under the Loan Agreement are not paid when due. In December 2016, March 2017 and April 2017, Sohu Media received RMB500.0 million (or approximately $79.5 million), RMB200.0 million (or $31.8 million) and RMB 300.0 million (or $47.7 million), respectively, from AmazGame. As of March 31, 2018, the total outstanding balance of the loan was RMB1.00 billion (or $159.0 million). The intra-Group loan has been eliminated upon consolidation. In December 2017, Sohu Media and AmazGame entered into an agreement extending the due date of each advance for an additional year. As of March 31, 2018, the number of Class B ordinary shares pledged by Sohu Game to Changyou was 13,704,663. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Fair Value Measurements | 6. FAIR VALUE MEASUREMENTS Fair Value of Financial Instruments The Sohu Groups financial instruments consist primarily of cash equivalents, short-term investments, accounts receivable, prepaid and other current assets, long-term investments, accounts payable, accrued liabilities, receipts in advance and deferred revenue, short-term bank loans, other short-term liabilities, long-term bank loans and long-term accounts payable. 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 the financial instruments, measured at fair value, by level within the fair value hierarchy as of December 31, 2017 (in thousands): Fair value measurements at reporting date using Items As of Quoted Prices Significant Significant Cash equivalents $ 1,136,892 $ 0 $ 1,136,892 $ 0 Short-term investments 818,934 0 818,934 0 Equity investments with readily determinable fair values 21,307 21,307 0 0 Foreign exchange forward contracts recognized in other short-term liabilities 715 0 715 0 The following table sets forth the financial instruments, measured at fair value by level within the fair value hierarchy, as of March 31, 2018 (in thousands): Fair value measurements at reporting date using Items As of Quoted Prices Significant Significant Cash equivalents $ 924,738 $ 0 $ 924,738 $ 0 Short-term investments 1,074,538 0 1,074,538 0 Equity investments with readily determinable fair values 12,725 12,725 0 0 Cash Equivalents The Sohu Groups cash equivalents mainly consist of time deposits with original maturities of three months or less, notice deposits, and highly liquid investments that are readily convertible to known amounts of cash. The fair values of cash equivalents are determined based on the pervasive interest rates in the market. The Group classifies the valuation techniques that use the pervasive interest rates input as Level 2 of fair value measurements. Generally, there are no quoted prices in active markets for identical cash equivalents at the reporting date. In order to determine the fair value, the Group must use the discounted cash flow method and observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Short-term Investments In accordance with ASC 825, for investments in financial instruments with a variable interest rate indexed to performance of underlying assets, the Sohu Group elected the fair value method at the date of initial recognition and carried these investments at fair value. Changes in the fair value are reflected in the consolidated statements of comprehensive income as other income /(expense). To estimate fair value, the Group refers to the quoted rate of return provided by banks at the end of each period using the discounted cash flow method. The Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. As of March 31, 2018 and December 31, 2017, the Sohu Groups investment in these financial instruments was $1.07 billion and $818.9 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 three months ended March 31, 2018 and 2017, the Sohu Group recorded a gain from changes in the fair value of short-term investments in the amounts of $8.8 million and $2.6 million in the consolidated statements of comprehensive income, respectively. Foreign Exchange Forward Contracts In September 2016 and January 2017, Changyou entered into foreign exchange forward contracts with banks in aggregate notional amounts of $100 million and $50 million, respectively. Changyou entered into such foreign exchange forward contracts in compliance with its risk management policy for the purpose of eliminating the negative impact on earnings and equity resulting from fluctuations in the exchange rate between the U.S. dollar and the RMB. In January 2018, Changyou settled the remaining foreign exchange forward contracts with a realized loss of $0.2 million recognized in the consolidated statements of comprehensive income for the three months ended March 31, 2018. For the three months ended March 31, 2017, the Sohu Group recorded an unrealized loss of $0.5 million, resulting from changes in the fair values of forward contracts in the consolidated statements of comprehensive income. For the three months ended March 31, 2018 and 2017, the Sohu Group recorded cash outflows related to the forward contracts of $0.9 million and nil, respectively, in the consolidated statements of cash flows. As of March 31, 2018, the carrying value of the foreign exchange forward contracts recognized in other short-term liabilities was nil. The Group estimated the fair values of foreign exchange forward contracts using the Black-Scholes model. The fair values of the forward contracts were estimated based on quoted forward exchange prices at the reporting date. The Group classifies the fair value measurement of the forward contracts based on such inputs as Level 2 of fair value measurements. Equity Investments ASU 2016-01 2016-01), The following table illustrates the effect of the adoption of ASU 2016-01 As reported Without adoption 2016-01 Effect of change Higher/(Lower) Operating profit $ (31,490 ) (31,490 ) 0 Other income, net 12,281 10,918 1,363 Income tax expenses 63,379 63,058 321 Net loss (87,201 ) (88,243 ) 1,042 Foreign currency translation adjustments 37,031 37,111 (80 ) Change in unrealized gain for equity securities with readily determinable fair value 0 882 (882 ) Other comprehensive income 37,031 37,993 (962 ) Comprehensive loss (50,170 ) (50,250 ) 80 Basic net loss per share attributable to Sohu.com Inc. (2.39 ) (2.41 ) 0.02 Diluted net loss per share attributable to Sohu.com Inc. (2.39 ) (2.41 ) 0.02 The following table illustrates the effect of the adoption of ASU 2016-01 As reported Without adoption of 2016-01 Effect of change Higher/(Lower) Long term investments, net $ 98,612 98,416 196 Deferred tax liability 95,632 95,517 115 Accumulated other comprehensive income 44,220 52,683 (8,463 ) Accumulated deficit (327,537 ) (335,915 ) 8,378 The adoption of ASU 2016-01 Equity Investments Accounted for Using the Equity Method Investment in Fox Financial Under an agreement between Sohu and Fox Financial entered into in August 2014, Sohu invested $4.8 million and $16.1 million in Fox Financial on August 2014 and April 2015, respectively. In February 2016, Sohu invested an additional $10.5 million in Fox Financial. Sohu accounted for its investments in Fox Financial under long-term investments. These investments include both preferred shares and common shares. Sohu elected to account for its investment in Fox Financials preferred shares at cost less impairments, adjusted by observable price changes, since they were not considered to be common shares in substance and had no readily determinable fair value. There was no any observable price change in our investment in Fox Financial in the three months ended March 31, 2018. Sohu accounted for its investment in Fox Financials common shares under the equity method, since Sohu can exercise significant influence through its board seat in Fox Financial, but does not own a majority of Fox Financials equity capital or control Fox Financial. In March 2017, Fox Financial issued additional common shares to new investors, while shares held by Sohu remained unchanged. As a result, Sohus shareholding percentage of common shares was diluted from 7% to 6%. The Group recognized dilution gain of $0.7 million in other income for the three months ended March 31, 2017. As of March 31, 2018, the carrying value of Sohus investment in Fox Financial was $24.5 million. Equity Investments with Readily Determinable Fair Values Effective as of January 1, 2018, all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. There will no longer be an available-for-sale Equity investments with readily determinable fair values are valued using the market approach based on the quoted prices in active markets at the reporting date. The Group classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. Investment in Keyeast Co., Ltd. (Keyeast) On August 12, 2014, Sohu acquired approximately 6% of the total outstanding common shares of Keyeast, a Korean-listed company, for a purchase price of $15.1 million. The Sohu Group classified this investment as equity investments with readily determinable fair values under long-term investments, and reported it at fair value using a market approach based on Keyeasts stock price on the South Korean stock market. The fair value of this investment was continually below its original cost for a twelve-month period ended July 31, 2017. Management considered the decline in the fair value to be other-than-temporary, and the Sohu Group recognized an impairment loss of $5.8 million in other income /(loss) in the Sohu Groups consolidated statements in the third quarter of 2017. Starting from January 1, 2018, Sohu applied ASU 2016-01 Investment in Hylink Digital Solution Co., Ltd (Hylink) On May 5, 2011, Sohu acquired 2% of the equity interests of Hylink for a purchase price of $2.3 million (RMB15 million). Given that Sohu neither controls nor has significant influence over Hylink, and the equity interest of Hylink did not have a readily determinable fair value, Sohu has previously accounted for this investment using the cost method. On August 2, 2017, Hylink completed its IPO on the Shanghai Stock Exchange. Upon the completion of Hylinks IPO, Sohus interest in Hylink was diluted to 1.5% of Hylinks total ordinary shares then outstanding. The Sohu Group reclassified this investment as equity investments with readily determinable fair values with the investments fair value measured based on Hylinks stock price on the Shanghai Stock Exchange. Starting from January 1, 2018, Sohu applied ASU2016-01 Equity Investments without Readily Determinable Fair Values Based on ASU 2016-01, If this measurement alternative is elected, changes in the carrying value of the equity investment will be required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The implementation guidance notes that an entity should make a reasonable effort to identify price changes that are known or that can reasonably be known. Long-term Investment in Zhihu As of March 31, 2018, Sogou had invested a cumulative total of $18.9 million 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 elected to account for the investment in Zhihu at cost less impairments, adjusted by observable price changes, since Sogou does not have significant influence over Zhihu and its investment in Zhihu is without readily determinable fair value. There was no observable price change for the three months ended March 31, 2018. Long-term Investment in Hainan Yun Jiang In March 2018, Sogou invested $12.7 million (RMB80 million) in Hainan Yun Jiang Technology Co., Ltd. (Hainan Yun Jiang), a high-tech enterprise that engages primarily in the business of operating on-line off-line Short-term Receivables and Payables Accounts receivable and prepaid and other current assets are financial assets with carrying values that approximate fair value due to their short-term nature. Short-term accounts payable, accrued liabilities, receipts in advance and deferred revenue, short-term bank loans and other short-term liabilities are financial liabilities with carrying values that approximate fair value due to their short-term nature. For short-term receivables and payables, the Group estimated fair values using the discounted cash flow method. The Group classifies the valuation technique as Level 2 of fair value measurements. Short-term Bank Loans For short-term bank loans, the rates of interest under the agreements with the lending banks were determined based on the prevailing interest rates in the market. The Sohu Group estimated fair values using the discounted cash flow method and classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. Factoring contract with recourse with HongKong and Shanghai Banking Corporation Limited (HSBC) In May 2017, Sohu entered into a one year factoring contract with recourse with HSBC, pursuant to which Sohu may borrow from HSBC from time to time up to a combined aggregate of RMB180.0 million (or $28.6 million), which is the upper limit reviewed by HSBC at least annually. The loan is secured by up to RMB198.0 million (or $31.5 million) of Sohus accounts receivable and guaranteed by Sohu Media. Interest will accrue on the principal amounts of the loans outstanding at an annual rate that will be agreed to by HSBC and Sohu upon drawdown. As of March 31, 2018 and December 31, 2017, the total outstanding balance of the loan was both nil. Credit agreements with Ping An Bank Co., Ltd. (Ping An Bank) In May 2017, Sohu entered into credit agreements with Ping An Bank pursuant to which Sohu was entitled to borrow from Ping An Bank from time to time until May 18, 2020 up to a combined aggregate of RMB2.50 billion (or $397.6 million). The loan was initially secured by pledges of Sohus two buildings and guaranteed by Sohu.com (Game) Limited (Sohu Game). The initial interest rate for the loans was an annual rate equal to 115% of the rate published by the PBOC. In July 2017, Sohu entered into an amendment of its loan arrangements with Ping An Bank pursuant to which interest on outstanding principal amounts will accrue at a rate designated separately upon each drawdown based on the benchmark loan rate published by the PBOC with reference to then prevailing market interest rates. In July 2017, Sohu drew down from Ping An Bank pursuant to the loan arrangements a loan with a term of 12 months in the amount of RMB400.0 million (or approximately $63.6 million) and an interest rate of 6.525% per annum, which is 150% of the rate published by the PBOC as of the date of the drawdown. In September 2017, Sohu entered into another amendment of its loan arrangements with Ping An Bank pursuant to which the maximum amount that Sohu is entitled to borrow has been reduced from RMB2.50 billion (or $397.6 million) to RMB600 million (or $95.4 million), and one of Sohus buildings was released from the pledge. As of March 31, 2018 and December 31, 2017, the total outstanding balance of the loan was RMB400 million (or $63.6 million) and RMB400 million (or $61.2 million), respectively. 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. In September 2017, Sohu entered into credit agreements with the Industrial and Commercial Bank of China Limited (ICBC) pursuant to which Sohu will be entitled to borrow from ICBC from time to time until March 31, 2018 up to a combined aggregate of RMB800 million (or $127.2 million). The outstanding principal amount of the loan will be payable in four equal installments, with the first installment payable 18 months after the drawdown and the other three installments payable semi-annually at the end of each of the three successive six-month |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2018 | |
GOODWILL [Abstract] | |
Goodwill | 7. GOODWILL Changes in the carrying value of goodwill by segments are as follows (in thousands): Sohu Sogou Changyou Total Balance as of December 31, 2017 Goodwill $ 73,941 5,908 181,421 261,270 Accumulated impairment losses (35,788 ) 0 (153,917 ) (189,705 ) $ 38,153 $ 5,908 $ 27,504 $ 71,565 Transactions in 2018 Foreign currency translation adjustment 631 231 675 1,537 Balance as of March 31, 2018 $ 38,784 $ 6,139 $ 28,179 $ 73,102 Balance as of March 31, 2018 Goodwill $ 71,030 $ 6,139 $ 182,096 $ 259,265 Accumulated impairment losses (32,246 ) 0 (153,917 ) (186,163 ) $ 38,784 $ 6,139 $ 28,179 $ 73,102 |
Taxation
Taxation | 3 Months Ended |
Mar. 31, 2018 | |
TAXATION [Abstract] | |
Taxation | 8. TAXATION Sohu.com Inc. is subject to United States (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 Groups operations, and generate most of the Sohu Groups income or losses. PRC Corporate Income Tax Principal Entities Qualified as HNTEs The PRC Corporate Income Tax Law (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 March 31, 2018, the following principal entities of the Sohu Group were qualified as HNTEs and were entitled to an income tax rate of 15%. For Sohus Business Beijing Sohu New Momentum Information Technology Co., Ltd. (Sohu New Momentum). Sohu New Momentum qualified as an HNTE for the years 2016 through 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 through 2017, and will need to re-apply Sohu Media and Guangzhou Qianjun. Sohu Media and Guangzhou Qianjun re-applied re-apply For Sogous Business Beijing Sogou Information Service Co., Ltd. (Sogou Information). Sogou Information qualified as an HNTE for the years 2015 through 2017, and will need to re-apply Beijing Sogou Technology Development Co., Ltd. (Sogou Technology). Sogou Technology re-applied re-apply Beijing Sogou Network Technology Co., Ltd. (Sogou Network). Sogou Network qualified as an HNTE for the years 2016 through 2018, and will need to re-apply For Changyous Business Beijing Gamease Age Digital Technology Co., Ltd. (Gamease) and Beijing AmazGame Age Internet Technology Co., Ltd. (AmazGame). Gamease and AmazGame re-applied re-apply Beijing Changyou Gamespace Software Technology Co., Ltd. (Gamespace). Gamespace qualified as an HNTE for the years 2016 through 2018, and will need to re-apply Principal Entities Qualified as Software Enterprises and KNSEs The CIT Law and its implementing regulations provide that a Software Enterprise is entitled to an income tax exemption for two years beginning with its first profitable year and a 50% reduction to a rate of 12.5% for the subsequent three years. An entity that qualifies as a 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 a KNSE must perform a self-assessment each year to ensure they meet the criteria for qualification and file required supporting documents with the tax authorities before using the preferential CIT rates. These enterprises will be subject to the tax authorities assessment each year as to whether they are entitled to use the relevant preferential CIT treatments. If at any time during the preferential tax treatment years an enterprise uses the preferential CIT rates but the relevant authorities determine that it fails to meet applicable criteria for qualification, the relevant authorities may revoke the enterprises Software Enterprise/KNSE status. For Sohus Business Sohu New Momentum. In 2017, Sohu New Momentum completed a self-assessment, filed required supporting documents, and was qualified as a Software Enterprise, which entitled it to the first year of an income tax rate reduction from 25% to 12.5% for 2016. Sohu New Momentum will follow the same process in 2018 to entitle it to the second year of an income tax rate reduction from 25% to 12.5% for 2017. For Sogous Business Sogou Technology. In 2017, Sogou Technology completed a self-assessment and filed required supporting documents for KNSE status for 2016. In 2017, 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 2016. Sogou Technology will follow the same process in 2018 for KNSE status for 2017. For Changyous Business AmazGame. In 2017, AmazGame completed a self-assessment and filed required supporting documents for KNSE status for 2016. Also in 2017, AmazGame was qualified as a KNSE after the relevant government authorities assessment and was entitled to a preferential income tax rate of 10% for 2016. AmazGame will follow the same process in 2018 for KNSE status for 2017. 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 Before 2018, in order to fund the distribution of a dividend to shareholders of the Sohu Groups majority-owned subsidiary Changyou, Changyous 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), and adopted as a policy for such subsequent years for its PRC subsidiaries a limit on payment of dividends to their direct overseas parent companies of one-half With the exception of that dividend, the Sohu Group does not intend to have any of its PRC subsidiaries or VIEs distribute any undistributed profits of such subsidiaries or VIEs to their direct overseas parent companies, but rather intends that such profits will be permanently reinvested by such subsidiaries and VIEs for their PRC operations. PRC Value-Added Tax 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 Groups 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 21% for taxable years beginning after December 31, 2017 and of up to 35% for prior tax years. U.S. federal tax legislation signed into law on December 22, 2017, commonly referred to as the Tax Cuts and Jobs Act (the U.S. Tax Reform), significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time one-time The U.S. Tax Reform also includes provisions for a new tax on global intangible low-taxed The Companys management is still evaluating the effect of the U.S. Tax Reform on Sohu.com Inc. Management may update its judgment of that effect based on its continuing evaluation and on future regulations or guidance issued by the U.S. Department of the Treasury. To the extent that portions of Sohu.com Inc.s U.S. taxable income, such as Subpart F income or GILTI, 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. If dividends that Sohu.com Inc. receives from its subsidiaries are determined to be from sources outside of the U.S., subject to certain limitations, Sohu.com Inc. will generally not be required to pay U.S. corporate income tax on those dividends. Any liabilities for U.S. corporate income tax will be accrued in the Companys consolidated statements of comprehensive income and estimated tax payments will be made when required by U.S. law. One-Time In the fourth quarter of 2017, the Group recognized a one-time non-U.S. one-time one-time 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 Groups 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 The Group did not have any significant penalties or significant interest associated with tax positions for the three months ended March 31, 2018, nor did the Group have any significant unrecognized uncertain tax positions for the three months ended March 31, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Commitments and Contingencies | 9. COMMITMENTS AND CONTINGENCIES Contractual Obligations The following table sets forth our contractual obligations as of March 31, 2018 (in thousands): As of March 31, 2018 2019 2020 2021 2022 Thereafter Total Purchase of cinema advertisement slot rights 54,015 59,022 32,845 12,805 1,356 1,352 161,395 Purchase of bandwidth 72,087 2,569 1,242 340 0 0 76,238 Purchase of content and services video 23,311 19,405 1,179 0 0 0 43,895 Operating lease obligations 14,604 9,431 4,087 77 11 0 28,210 Expenditures for operating rights for licensed games with technological feasibility 11,681 3,531 2,633 0 0 0 17,845 Purchase of content and services others 10,251 382 93 33 0 0 10,759 Fees for operating rights for licensed games in development 500 0 0 0 0 0 500 Others 4,850 1,301 0 0 0 0 6,151 Total Payments Required 191,299 95,641 42,079 13,255 1,367 1,352 344,993 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 Groups business, results of operations, financial condition and cash flows. As of March 31, 2018, Sohu and Changyou had no significant litigation contingencies, and Sogou had recorded estimated liabilities of $3.8 million for litigation contingencies as a component of accrued liabilities related to its currently pending proceedings. PRC Law and Regulations The Chinese market in which the Sohu Group operates poses certain macro-economic and regulatory risks and uncertainties. These uncertainties extend to the ability to operate an Internet business and to conduct brand advertising, search and search-related advertising, online game, and other services in the PRC. Though the PRC has, since 1978, implemented a wide range of market-oriented economic reforms, continued reforms and progress towards a full market-oriented economy are uncertain. In addition, the telecommunication, information, and media industries remain highly regulated. Restrictions are currently in place and are unclear with respect to which segments of these industries foreign-owned entities, like the Sohu Group, may operate. The Chinese government may issue from time to time new laws or new interpretations of existing laws to regulate areas such as telecommunication, information and media. The Sohu Groups 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 Groups VIE structure are discussed in Note 10 - VIEs. Regulatory risks also encompass interpretation by PRC tax authorities of current tax law, including the applicability of certain preferential tax treatments. The Sohu Groups 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 | 3 Months Ended |
Mar. 31, 2018 | |
VIES [Abstract] | |
VIEs | 10. 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 Groups principal VIEs are directly or indirectly owned by Dr. Charles Zhang, the Sohu Groups 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 March 31, 2018, the aggregate amount of these loans was $7.7 million. Under its contractual arrangements with the consolidated VIEs, the Sohu Group has the power to direct activities of the VIEs, and can have assets transferred freely out of the VIEs without any restrictions. Therefore, the Group considers that there is no asset of a consolidated VIE that can be used only to settle obligations of the VIEs, except for registered capital and PRC statutory reserves of the VIEs. As of March 31, 2018, the registered capital and PRC statutory reserves of the consolidated VIEs totaled $71.9 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 Sohus Business High Century Beijing Century High Tech Investment Co., Ltd. (High Century) was incorporated in 2001. As of March 31, 2018, 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 March 31, 2018, 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 March 31, 2018, High Century held a 100% interest in this entity. Donglin Beijing Sohu Donglin Advertising Co., Ltd. (Donglin) was incorporated in 2010. As of March 31, 2018, 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 March 31, 2018, Xiufeng Deng and Xuemei Zhang each held a 50% interest in this entity. Guangzhou Qianjun Guangzhou Qianjun was acquired in November 2014. As of March 31, 2018, 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 March 31, 2018, Heng Da Yi Tong held 100% of the equity interests in this entity. For Sogous Business Sogou Information Sogou Information was incorporated in 2005. As of March 31, 2018, Xiaochuan Wang, Sogous Chief Executive Officer, High Century and Tencent held 10%, 45% and 45% interests, respectively, in this entity. For Changyous Business Gamease Gamease was incorporated in 2007. As of March 31, 2018, High Century 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 March 31, 2018, Gamease held a 100% interest in this entity. Guanyou Gamespace Beijing Guanyou Gamespace Digital Technology Co., Ltd. (Guanyou Gamespace) was incorporated in 2010. As of March 31, 2018, Beijing Changyou Star Digital Technology Co., Ltd (Changyou Star) held a 100% interest in this entity. Financial Information The following financial information of the Sohu Groups consolidated VIEs (including subsidiaries of VIEs) is included in the accompanying consolidated financial statements (in thousands): As of December 31, March 31, ASSETS: Cash and cash equivalents $ 43,618 $ 17,280 Accounts receivable, net 95,305 80,468 Prepaid and other current assets 26,755 30,302 Short-term investments 12,303 19,132 Intra-Group receivables due from the Companys subsidiaries 398,135 436,640 Total current assets 576,116 583,822 Long-term investments, net 32,266 51,054 Fixed assets, net 2,414 2,448 Intangible assets, net 11,719 10,873 Goodwill 37,291 38,056 Other non-current 2,614 2,542 Total assets $ 662,420 $ 688,795 LIABILITIES: Accounts payable $ 53,842 $ 83,403 Accrued liabilities 76,883 66,470 Receipts in advance and deferred revenue 46,939 48,895 Other current liabilities 97,991 87,950 Intra-Group payables due to the Companys subsidiaries 197,367 231,676 Total current liabilities 473,022 518,394 Long-term taxes payable 14,293 14,794 Deferred tax liabilities 3,451 3,853 Intra-Group payables due to the Companys subsidiaries 20,560 20,678 Total liabilities $ 511,326 $ 557,719 Three months ended March 31, 2017 2018 Net revenue $ 190,708 $ 210,900 Net income /(loss) 9,432 (21,909 ) Three months ended March 31, 2017 2018 Net cash used in operating activities $ (18,854 ) $ (3,624 ) Net cash provided by /(used in) investing activities 4,278 (24,559 ) Net cash provided by financing activities 0 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 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 Business Arrangements between Subsidiaries and Consolidated VIEs Technology consulting and service agreement Technology consulting and service agreement Technology consulting and service agreement Technology support and utilization agreements Services and maintenance agreements Certain of the contractual arrangements described above between the VIEs and the related wholly-owned subsidiaries of the Sohu Group are silent regarding renewals. However, because the VIEs are controlled by the Sohu Group through powers of attorney granted to the Sohu Group by the shareholders of the VIEs, the contractual arrangements can be, and are expected to be, renewed at the subsidiaries election. VIE-Related It is possible that the Sohu Groups 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 Groups 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 Peoples 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 Groups VIE arrangements, and as a result the Sohu Groups 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 Groups 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 Groups 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 Groups business operations, and have a severe adverse impact on the Sohu Groups cash flows, financial position and operating performance. In addition, it is possible that the contracts among the Sohu Group, the Sohu Groups VIEs and shareholders of its VIEs would not be enforceable in China if PRC government authorities or courts were to find that such contracts contravene PRC law and regulations or are otherwise not enforceable for public policy reasons. In the event that the Sohu Group was unable to enforce these contractual arrangements, the Sohu Group would not be able to exert effective control over the affected VIEs. Consequently, such VIEs results of operations, assets and liabilities would not be included in the Sohu Groups consolidated financial statements. If such were the case, the Sohu Groups cash flows, financial position and operating performance would be severely adversely affected. The Sohu Groups contractual arrangements with respect to its consolidated VIEs are in place. The Sohu Groups management believes that such contracts are enforceable, and considers the possibility remote that PRC regulatory authorities with jurisdiction over the Sohu Groups operations and contractual relationships would find the contracts to be unenforceable. The Sohu Groups 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 | 3 Months Ended |
Mar. 31, 2018 | |
SOHU.COM INC. SHAREHOLDERS' EQUITY [Abstract] | |
Sohu.com Inc. Shareholders' Equity | 11. SOHU.COM INC. SHAREHOLDERS EQUITY Takeover Defense Sohu intends to adopt appropriate defensive measures in the future on a case by case basis as and to the extent that Sohus 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 three months ended March 31, 2018 and 2017, 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. Sohu.com Inc. Share-based Awards Sohus 2010 Stock Incentive Plan On July 2, 2010, the Companys 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 March 31, 2018, 587,530 shares were available for grant under the Sohu 2010 Stock Incentive Plan. Summary of Stock Option Activity In February 2015, May 2016, September 2017 and November 2017, the Companys Board of Directors approved contractual grants to members of the Companys management and key employees of options for the purchase of an aggregate of 1,068,000, 13,000, 32,000 and 6,000 shares of common stock, 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 718-10-25 718-10-55, re-measured As of March 31, 2018, 562,500 of these stock options had been granted and had become vested on their respective vesting dates, as a mutual understanding of the subjective performance targets was reached between the Company and the recipients, the targets had been satisfied, and the service period requirements had been fulfilled. The cumulative share-based compensation expense for these granted stock options has been adjusted and fixed based on their aggregate fair values, at their respective grant dates, of $22.4 million. A summary of stock option activity under the Sohu 2010 Stock Incentive Plan as of and for the three months ended March 31, 2018 is presented below: Options Number Of Shares Weighted Weighted Aggregate Outstanding at January 1, 2018 223 $ $ Granted 131 0.001 Exercised (18 ) 0.001 Forfeited or expired 0 Outstanding at March 31, 2018 336 0.001 6.86 11,031 Vested at March 31, 2018 336 0.001 6.86 11,031 Exercisable at March 31, 2018 336 0.001 6.86 11,031 Note (1): The aggregated intrinsic value in the preceding table represents the difference between Sohus closing stock price of $32.88 on March 31, 2018 and the nominal exercise prices of the stock options. For the three months ended March 31, 2018 and 2017, total share-based compensation expense recognized for these stock options was negative $4.0 million and negative $2.5 million, respectively. The total fair values of these Sohu share options vested on their respective vesting dates for the three months ended March 31, 2018 and 2017 were $4.5 million and $7.0 million, respectively. For the three months ended March 31, 2018 and 2017, total intrinsic value of share options exercised was $0.6 million and $3.6 million, respectively. 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 three months ended March 31, 2018 is presented below: Restricted Stock Units Number of Weighted-Average Grant-Date Unvested at January 1, 2018 1 $ 72.92 Granted 0 Vested (1 ) 72.92 Forfeited 0 Unvested at March 31, 2018 0 Expected to vest after March 31, 2018 0 For the three months ended March 31, 2018 and 2017, total share-based compensation expense recognized for restricted stock units was $nil and $0.1 million, respectively. As of March 31, 2018, there was $nil of unrecognized compensation expense related to unvested restricted stock units. The total fair value on their respective vesting dates of restricted stock units that vested during the three months ended March 31, 2018 and 2017 was nil and $86,078, respectively. 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 March 31, 2018, Sogou had contractually granted options for the purchase of 39,700,127 Sogou ordinary shares under the 2010 Sogou Share Incentive Plan. Of the contractually-granted Sogou share options for the purchase of 39,700,127 Sogou Class A Ordinary Shares, options for the purchase of 30,251,935 Sogou Class A Ordinary Shares vest and become exercisable in four equal installments or in two to four installments over varying periods upon a service period requirement being met, as well as Sogous 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 March 31, 2018, Sogou had granted options for the purchase of 27,051,057 Sogou Class A Ordinary Shares under the 2010 Sogou Share Incentive Plan. As of March 31, 2018, options for the purchase of 26,800,559 Sogou Class A 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 25,180,458 Sogou Class A Ordinary Shares had been exercised. Of the contractually granted options for the purchase of 39,700,127 Sogou Class A Ordinary Shares, vesting of options for the purchase of 7,250,000 Class A Ordinary Shares was subject to completion of an IPO and, of such options, options for the purchase of 7,200,000 Class A Ordinary Shares vest and become exercisable in five equal installments, with (i) the first installment vesting upon the expiration of all underwriters lockup periods applicable to Sogous IPO and (ii) each of the four subsequent installments vesting on the first, second, third, and fourth anniversary dates, respectively, of the completion of Sogous IPO. The remaining options for the purchase of 50,000 Class A Ordinary Shares will vest and become exercisable on July 21, 2018. None of the options had become vested, exercisable, or exercised. Of the contractually-granted Sogou share options for the purchase of 39,700,127 Sogou Class A Ordinary Shares, options for the purchase of 2,198,192 Sogou Class A Ordinary Shares vest and become exercisable in four equal installments or in two to four installments over varying periods upon a service period requirement being met. Of these options, options for the purchase of 2,181,192 Sogou Class A Ordinary Shares that had previously included as vesting conditions a service period requirement as well as Sogous achievement of performance targets for the corresponding period were amended in the first quarter of 2018 to remove as a condition of vesting Sogous achievement of performance targets for the corresponding period. None of the options had become vested or had been exercised as of March 31, 2018. As of March 31, 2018, for purposes of recognition of share-based compensation expense, Sogou had granted Sogou share options for the purchase of 36,499,249 Sogou Class A Ordinary Shares, of which options for the purchase of 11,318,791 Sogou Class A Ordinary Shares were outstanding. A summary of Sogou share option activity under the Sogou 2010 Share Incentive Plan as of and for the three months ended March 31, 2018 is presented below: Options Number Of Shares (in thousands) Weighted Weighted Aggregate Outstanding at January 1, 2018 9,753 $ 0.462 5.56 Granted 1,696 0.001 Exercised (17 ) 0.001 Forfeited or expired (113 ) 0.001 Outstanding at March 31, 2018 11,319 0.398 5.81 88,876 Vested at March 31, 2018 and expected to vest thereafter 10,952 0.411 5.70 85,846 Exercisable at March 31, 2018 1,620 0.001 5.43 13,346 Note (1): The aggregate intrinsic values in the preceding table represent the difference between Sogous closing price of $8.25 per Class A Ordinary Share on March 31, 2018 and the exercise prices of the share options. For the three months ended March 31, 2018 and 2017, total share-based compensation expense recognized for Sogou share options under the Sogou 2010 Share Incentive Plan was $4.2 million and $0.3 million, respectively. As of March 31, 2018, there was $19.6 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 2.27 years. For the three months ended March 31, 2018 and 2017, the total intrinsic value of options exercised was $0.1 million and $443, respectively. Prior to the completion of Sogous IPO, the fair values of the ordinary shares of Sogou were assessed using the income approach /discounted cash flow method or based on the mid-point The fair value of the Sogou share options granted to Sogou management and key employees was estimated on their respective date of grant using the binomial valuation model with the following assumptions used: Assumptions Adopted Average risk-free interest rate 2.61%~3.51% Exercise multiple 2~3 Expected forfeiture rate (post-vesting) 0%-12% Weighted average expected option life 9 Volatility rate 39%~47% Dividend yield 0% Weighted average fair value of share options 12.28 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 Sogous valuation analysis, a multiple of three was applied for management and a multiple of two was applied for other key employees. Sogou estimated the forfeiture rate to be 0% or 1% for the Sogou share options granted to Sogou management and 12% for the Sogou share options granted to Sogous other key employees. As Sogous ordinary shares had been publicly traded for less than six months as of March 31, 2018, the expected volatility at the valuation date was estimated based on the historical volatility of guideline companies for the periods before the grant dates with length commensurate with the expected term of the Sogou share options. Sogou has no history or expectation of paying dividends on its ordinary shares. Accordingly, the dividend yield was estimated to be 0%. Sohu Management Sogou Share Option Arrangement Under an arrangement (the Sohu Management Sogou Share Option Arrangement) that was approved by the boards of directors of Sohu and Sogou in March 2011, Sohu has the right to provide to members of Sohus Board of Directors, management and key employees of the Sohu Group the opportunity to purchase from Sohu up to 12,000,000 Class A 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 Class A Ordinary Shares previously held by Sohu and 3,200,000 are Sogou Class A Ordinary Shares that were newly-issued on April 14, 2011 by Sogou to Sohu at a price of $0.625 per share, or a total of $2.0 million. As of March 31, 2018, Sohu had contractually granted options for the purchase of 8,305,000 Sogou Class A Ordinary Shares under the Sohu Management Sogou Share Option Arrangement. Of the contractually-granted Sogou share options for the purchase of 8,305,000 Sogou Class A Ordinary Shares, options for the purchase of 8,290,000 Sogou Class A Ordinary Shares vest and become exercisable in four equal installments, with each installment vesting upon a service period requirement for Sohus management and key employees being met, as well as Sogous 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 March 31, 2018, Sohu had granted Sogou share options for the purchase of 8,290,000 Sogou Class A Ordinary Shares under the Sohu Management Sogou Share Option Arrangement. As of March 31, 2018, options for the purchase of 8,290,000 Sogou Class A 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 8,290,000 Sogou Class A Ordinary Shares had been exercised. Of the contractually-granted As of March 31, 2018, for purposes of recognition of share-based compensation expense, Sohu had granted options for the purchase of 8,305,000 Sogou Class A Ordinary Shares, of which options for the purchase of 9,000 Sogou Class A Ordinary Shares were outstanding. A summary of Sogou share option activity under the Sohu Management Sogou Share Option Arrangement as of and for the three months ended March 31, 2018 is presented below: Options Number Of Weighted Weighted Aggregate Outstanding at January 1, 2018 9 $ 0.001 7.38 Granted 0 Exercised 0 Forfeited or expired 0 Outstanding at March 31, 2018 9 0.001 7.14 $ 74 Vested at March 31, 2018 9 0.001 7.14 74 Exercisable at March 31, 2018 9 0.001 7.14 74 Note (1): The aggregate intrinsic value in the preceding table represents the difference between Sogous closing price of $8.25 per Class A ordinary share on March 31, 2018 and the exercise prices of the share options. Sogou 2017 Share Incentive Plan In October 2017, Sogou adopted a share incentive plan (the Sogou 2017 Share Incentive Plan) that provides for the issuance of up to an aggregate of 28,000,000 Sogou Class A Ordinary Shares. Share incentive awards may be granted under the Sogou 2017 Share Incentive Plan to Sogous management and employees and of any of its present or future parents or subsidiaries. The maximum term of any share incentive award granted under the Sogou 2017 Share Incentive Plan is ten years from the grant date. As of March 31, 2018, none of the options had been contractually granted under the 2017 Sogou Share Incentive Plan. Sogou Share Repurchase Transaction In January 2017, Sogou repurchased 720,000 of its Pre-IPO Pre-IPO Option Modification In the first and second quarter of 2013, a portion of the Sogou share options granted under the Sogou 2010 Share Incentive Plan and the Sohu Management Sogou Share Option Arrangement were exercised early, and the resulting Sogou ordinary shares 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 original option agreements. Although these trust arrangements caused a modification of the terms of these Sogou share options, the modification was not considered substantive. Accordingly, no incremental fair value related to these Sogou ordinary shares resulted from the modification, and the remaining share-based compensation expense for these Sogou ordinary shares continued to be recognized over the original remaining vesting period. As of March 31, 2018, 10,327,500 Sogou Class A Ordinary Shares that were purchased upon the early exercise of options granted under the Sogou 2010 Share Incentive Plan remained unvested in accordance with the vesting requirements under the original option agreements. All Sogou Class A Ordinary Shares purchased upon such early exercise that have become vested have been included in the disclosures under the heading Sogou 2010 Share Incentive Plan and Sohu Management Sogou Share Option Arrangement above. In the first quarter of 2018, Sogou changed the vesting conditions of 2,181,192 shares of Sogou share options contractually granted under the Sogou 2010 Share Incentive Plan by removing as a condition of vesting Sogous achievement of performance targets for the period corresponding to the vesting schedule. Of these options, 1,601,427 share options had not been deemed granted, because their performance targets for the current period had not been set, so the removal of the performance targets resulted in these options becoming service-based and being deemed granted immediately upon the effectiveness of the changes. For the remaining 579,765 Sogou share options, which had been deemed granted, the removal of the performance targets constituted a modification. The modification was not considered substantive, because their performance targets had been achieved before the modification. Based on valuation results, no incremental fair value related to these Sogou ordinary shares was recognized in connection with the modification, and the remaining share-based compensation expense for these Sogou ordinary shares continued to be recognized over the remaining vesting period. Tencent Share-based Awards Granted to Employees Who Transferred to Sogou with the Soso Search and Search-related Businesses Certain persons who became Sogou employees when Tencents Soso search and search-related businesses were transferred to Sogou on September 16, 2013 had been granted restricted share units under Tencents share award arrangements prior to the transfer of the businesses. Following the transfer of the businesses, 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 and search-related businesses to Sogou, Sogou applied the guidance in ASC 505-50 For the three months ended March 31, 2018 and 2017, share-based compensation expense of $32,694 and $298, respectively, related to these Tencent restricted share units was recognized in the Groups consolidated statements of comprehensive income. As of March 31, 2018, there was $30,246 of unrecognized compensation expense related to these unvested Tencent restricted share units. This amount is expected to be recognized over a weighted average period of 0.26 years. Changyou.com Limited Share-based Awards Changyou 2008 Share Incentive Plan Changyous 2008 Share Incentive Plan (the Changyou 2008 Share Incentive Plan) originally provided for the issuance of up to 2,000,000 Changyou ordinary shares, including Changyou ordinary shares issued pursuant to the exercise of share options and upon vesting and settlement of restricted share units. The 2,000,000 reserved Changyou ordinary shares became 20,000,000 Changyou ordinary shares in March 2009 when Changyou effected a ten-for-one All of the restricted Changyou ordinary shares and restricted share units granted under the Changyou 2008 Share Incentive Plan were vested as of December 31, 2017, as the requisite service period for all these awards had been completed. There has been no share-based compensation expense recognized under the Changyou 2008 Share Incentive Plan since then. Changyou 2014 Share Incentive Plan On June 27, 2014, Changyou reserved 2,000,000 of its Class A ordinary shares under the Changyou.com Limited 2014 Share Incentive Plan (the Changyou 2014 Share Incentive Plan) for the purpose of making share incentive awards to certain members of its management and key employees. On November 2, 2014, Changyous Board approved an increase in the number of Class A ordinary shares reserved under the Changyou 2014 Share Incentive Plan from 2,000,000 to 6,000,000. The maximum term of any share right granted under the Changyou 2014 Share Incentive Plan is ten years from the grant date. The Changyou 2014 Share Incentive Plan will expire in June 2024. As of March 31, 2018, 2,988,000 shares were available for grant under the Changyou 2014 Share Incentive Plan. 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, Changyous 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, Changyous 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, Changyous 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 718-10-25 718-10-55, re-measured As of March 31, 2018, 1,999,000 of these Changyou share options had been granted and had become vested on their respective vesting dates, as a mutual understanding of the subjective performance targets had been reached between Changyou and the recipients, the targets had been satisfied, and the service period requirements had been fulfilled. The cumulative share-based compensation expense of $28.6 million for these granted share options was adjusted and fixed based on the aggregate amounts of the fair values of these granted share options at their respective grant dates. A summary of share option activity under the Changyou 2014 Share Incentive Plan as of and for the three months ended March 31, 2018 is presented below: Options Number Of Weighted Weighted Aggregate Outstanding at January 1, 2018 947 $ 0.01 7.01 $ 17,240 Granted 0 0.01 Exercised (400 ) 0.01 Forfeited or expired 0 Outstanding at March 31, 2018 547 0.01 6.85 7,622 Vested at March 31, 2018 547 0.01 7,622 Exercisable at March 31, 2018 547 0.01 Note (1): The aggregated intrinsic value in the preceding table represents the difference between Changyous closing price of $27.89 per ADS, or $13.95 per Class A ordinary share, on March 31, 2018 and the nominal exercise price of share option. For the three months ended March 31, 2018 and 2017, total share-based compensation expense recognized for these share options under the Changyou 2014 Share Incentive Plan was negative $2.4 million and $5.5 million, respectively. The total fair values of these Changyou share options vested on their respective vesting dates for the three months ended March 31, 2018 and 2017 were both nil. The total intrinsic value of share options exercised for the three months ended March 31, 2018 and 2017 was $5.6 million and $0.3 million, respectively. 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 March 31, 2018, 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 Videos achievement of performance targets for the corresponding period. For purposes of ASC 718-10-25, For the three months ended March 31, 2018 and the three months ended March 31, 2017, total share-based compensation expense recognized for vested options under the Video 2011 Share Incentive Plan was negative $0.1 million and $0.2 million, respectively. The fair value as of March 31, 2018 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 3.19 % Exercise multiple 2.8 Expected forfeiture rate (post-vesting) 14 % Weighted average expected option life 3.8 Volatility rate 44.2 % Dividend yield 0.00 % Fair value 0.61 |
Noncontrolling Interest
Noncontrolling Interest | 3 Months Ended |
Mar. 31, 2018 | |
NONCONTROLLING INTEREST [Abstract] | |
Noncontrolling Interest | 12. NONCONTROLLING INTEREST The noncontrolling interests in the Sohu Groups consolidated financial statements primarily consist of noncontrolling interests for Sogou and Changyou. Noncontrolling Interest in the Consolidated Balance Sheets As of March 31, 2018 and December 31, 2017, noncontrolling interest in the consolidated balance sheets was $1.10 billion and $1.07 billion, respectively. As of December 31, 2017 March 31, 2018 Sogou $ 623,785 $ 648,867 Changyou 442,818 449,389 Total $ 1,066,603 $ 1,098,256 Noncontrolling Interest of Sogou As of March 31, 2018 and December 31, 2017, noncontrolling interest of Sogou of $648.9 million and $623.8 million, respectively, was recognized in the Sohu Groups consolidated balance sheets, both representing an economic interest of 66%, in Sogous net assets held by shareholders other than Sohu.com Inc. and reflecting the reclassification of Sogous share-based compensation expense from shareholders additional paid-in Noncontrolling Interest of Changyou As of March 31, 2018 and December 31, 2017, noncontrolling interest of Changyou of $449.4 million and $442.8 million, respectively, was recognized in the Sohu Groups consolidated balance sheets, representing a 32% and 32% economic interest, respectively, in Changyous net assets held by shareholders other than Sohu.com Inc. and reflecting the reclassification of Changyous share-based compensation expense from shareholders additional paid-in Noncontrolling Interest in the Consolidated Statements of Comprehensive Income /(Loss) For the three months ended March 31, 2018 and 2017, the Sohu Group had net income of $5.6 million and net income of $17.9 million, respectively, attributable to the noncontrolling interest in the consolidated statements of comprehensive income /(loss). Three Months Ended March 31, 2017 2018 Sogou $ 8,398 $ 10,135 Changyou 9,508 (4,518 ) Other (11 ) 0 Total $ 17,895 $ 5,617 Noncontrolling Interest of Sogou For the three months ended March 31, 2018 and 2017, net income of $10.1 million and $8.4 million, respectively, attributable to the noncontrolling interest of Sogou was recognized in the Sohu Groups consolidated statements of comprehensive income, representing Sogous net income /(loss) attributable to shareholders other than Sohu.com Inc. Noncontrolling Interest of Changyou For the three months ended March 31, 2018 and 2017, net loss of $4.5 million and net income $9.5 million, respectively, attributable to the noncontrolling interest of Changyou was recognized in the Sohu Groups consolidated statements of comprehensive income /(loss), representing a 32% and 31% economic interest, respectively, in Changyou attributable to shareholders other than Sohu.com Inc. |
Net Income _(Loss) per Share
Net Income /(Loss) per Share | 3 Months Ended |
Mar. 31, 2018 | |
NET INCOME /(LOSS) PER SHARE [Abstract] | |
Net Income /(Loss) per Share | 13. 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 three months ended March 31, 2018 and 2017, 347,000 and 303,000 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. Sogous Net income /(loss) Attributable to Sohu.com Inc. Before Sogous IPO Before Sogous IPO, Sogous net income /(loss) attributable to Sohu.com Inc. was determined using the percentage that the weighted average number of Sogou shares held by Sohu.com Inc. represented of the weighted average number of Sogou Pre-IPO Pre-IPO if-converted After Sogous IPO After Sogous IPO, Sogous 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 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 Sogou, 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, 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, Sogous 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 three months ended March 31, 2018, all of the Sogou share options had a dilutive effect, and therefore were included in the calculation of Sohu.com Inc.s diluted net income /(loss) per share. For the three months ended March 31, 2017, all of the Sogou share options had an anti-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 Sogou in the table below. Changyous net income /(loss) attributable to Sohu.com Inc. Changyous 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 Changyous 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, Changyous 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, Changyous 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 three months ended March 31, 2018, all of these Changyou restricted share units and share options had an anti-dilutive effect, and therefore were excluded in the calculation of Sohu.com Inc.s diluted net income /(loss) per share. For the three months ended March 31, 2017, all of these Changyou restricted share units and share options 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. The following table presents the calculation of the Sohu Groups basic and diluted net loss per share (in thousands, except per share data). Three Months Ended 2017 2018 Numerator: Net loss attributable to Sohu.com Inc., basic $ (68,248 ) $ (92,818 ) Effect of dilutive securities: Incremental dilution from Sogou 0 (107 ) Incremental dilution from Changyou (416 ) 0 Net loss attributable to Sohu.com Inc., diluted $ (68,664 ) $ (92,925 ) Denominator: Weighted average basic common shares outstanding 38,811 38,904 Effect of dilutive securities: Share options and restricted share units 0 0 Weighted average diluted common shares outstanding 38,811 38,904 Basic net loss per share attributable to Sohu.com Inc. $ (1.76 ) $ (2.39 ) Diluted net loss per share attributable to Sohu.com Inc. $ (1.77 ) $ (2.39 ) |
Recently Adopted Accounting Pro
Recently Adopted Accounting Pronouncement | 3 Months Ended |
Mar. 31, 2018 | |
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENT [Abstract] | |
Recently Adopted Accounting Pronouncement | 14. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENT Revenue from Contracts with Customers No. 2014-09, Revenue from Contracts with Customers (Topic 606). Revenue Recognition. ASU 2016-01 2016-01), Statements of Cash Flows (Topic 230) No. 2016-18, Statements of Cash Flows (Topic 230): Restricted Cash beginning-of-period end-of-period beginning-of-period end-of-period Other accounting standards adopted beginning January 1, 2018 do not have a significant impact on the Sohu Groups condensed consolidated financial statements. |
Impact of Recently Issued Accou
Impact of Recently Issued Accounting Pronouncements Not Yet Adopted | 3 Months Ended |
Mar. 31, 2018 | |
IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED [Abstract] | |
Impact of Recently Issued Accounting Pronouncements Not Yet Adopted | 15. IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED Leases. No. 2016-02 2016-02), 2016-02 2016-02 right-of-use 2016-02 Financial Instruments-Credit Losses. 2016-13, Financial Instruments-Credit Losses (Topic 326) . Simplifying the Test for Goodwill Impairment. 2017-04, Simplifying the Test for Goodwill Impairment. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
SUBSEQUENT EVENT [Abstract] | |
Subsequent Events | 16. SUBSEQUENT EVENTS On April 5, 2018, Changyou announced that its board of directors has declared a special cash dividend of $4.70 per Class A ordinary or Class B ordinary share, or $9.40 per American depositary share (ADS), each of which represents two Class A ordinary shares; and that the aggregate amount of the special cash dividend will be approximately $500 million. The amount of the dividend payable to Sohu is expected to be approximately $340 million. Sohu does not expect to pay any of such dividend to its stockholders, as the proceeds will be used to support Sohus operations. The non-controlling non-controlling On April 11, 2018, Sohu entered into a credit facility agreement with China Merchants Bank Co., Ltd. (CMB), pursuant to which Sohu is entitled to borrow up to an aggregate of RMB700 million (or approximately $111.3 million) (the CMB Loan). Also on April 11, 2018, Sohu made an initial drawdown of RMB400 million (or approximately $63.6 million) (the First Drawdown) under the CMB Loan. Interest will accrue on the outstanding principal balance of the First Drawdown at a rate of 6% per year and all outstanding principal of the First Drawdown will be due on April 10, 2019. The proceeds of the First Drawdown were used by Sohu to repay in full, on April 13, 2018, the outstanding balance under credit agreements between Sohu and Ping An Bank. On April 28, 2018, Ping An Bank released an existing first lien that Ping An Bank holds on a building of Sohu in Beijing, China, and CMB was granted a first lien on the building to secure the CMB Loan. |
The Company and Basis of Pres24
The Company and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Revenues disaggregated by products and services | Three Months Ended March 31, 2018 (in thousands) Three Months Ended March 31, 2017 (in thousands) Sohu Sogou Changyou Total Sohu Sogou Changyou Total Brand advertising: Sohu Media Portal $ 30,674 0 0 30,674 $ 36,844 0 0 36,844 Sohu Video 12,635 0 0 12,635 21,696 0 0 21,696 Focus 7,868 0 0 7,868 17,018 0 0 17,018 17173.com Website 0 0 5,078 5,078 0 0 5,854 5,854 Search and search related advertising 0 220,301 0 220,301 0 142,035 0 142,035 Online games: PC games 0 0 59,425 59,425 0 0 64,881 64,881 Mobile games 0 0 45,735 45,735 0 0 19,838 19,838 Other games 0 0 301 301 0 0 606 606 Others: Paid subscription services 9,257 0 0 9,257 6,316 0 0 6,316 Cinema advertising business 0 0 24,870 24,870 0 0 24,600 24,600 Others 9,305 27,749 1,797 38,851 10,090 20,234 4,091 34,415 Total $ 69,739 248,050 137,206 454,995 $ 91,964 162,269 119,870 374,103 |
ASC 606 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Line items in condensed consolidated statement of comprehensive income under adoption of ASC 606 | As reported Without adoption of Effect of change Higher/(Lower) Revenue-Online advertising-Brand advertising $ 56,254 55,913 341 Revenue-Online advertising-Search and search related advertising 220,301 213,987 6,314 Cost of revenue- Online advertising-Search and search related advertising 144,696 138,955 5,741 Gross profit 194,162 193,248 914 Operating expenses- Sales and marketing 90,273 89,359 914 Operating loss (31,490 ) (31,490 ) 0 Income tax expenses 63,379 63,379 0 Net loss (87,201 ) (87,201 ) 0 Basic net loss per share attributable to Sohu.com Inc. (2.39 ) (2.39 ) 0 Diluted net loss per share attributable to Sohu.com Inc. (2.39 ) (2.39 ) 0 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
SEGMENT INFORMATION [Abstract] | |
Segment operating information by segment | Three Months Ended March 31, 2017 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 92,492 $ 162,284 $ 119,870 $ (543 ) $ 374,103 Segment cost of revenues (92,202 ) (87,454 ) (39,088 ) 51 (218,693 ) Segment gross profit 290 74,830 80,782 (492 ) 155,410 SBC (2) in cost of revenues (159 ) (3 ) (24 ) 0 (186 ) Gross profit 131 74,827 80,758 (492 ) 155,224 Operating expenses: Product development (3) (25,979 ) (32,849 ) (24,404 ) 1,461 (81,771 ) Sales and marketing (1) (3) (55,051 ) (24,765 ) (10,536 ) 931 (89,421 ) General and administrative (3) (10,905 ) (4,635 ) (8,791 ) 32 (24,299 ) SBC (2) in operating expenses 2,806 (4,340 ) (5,509 ) 0 (7,043 ) Total operating expenses (89,129 ) (66,589 ) (49,240 ) 2,424 (202,534 ) Operating profit /(loss) (88,998 ) 8,238 31,518 1,932 (47,310 ) Other income /(loss) (3) 3,741 23 2,267 (1,932 ) 4,099 Interest income (4) 1,671 1,658 6,416 (5,274 ) 4,471 Interest expense (4) (4,376 ) 0 (1,073 ) 5,274 (175 ) Exchange difference 615 (639 ) (742 ) 0 (766 ) Income /(loss) before income tax expense (87,347 ) 9,280 38,386 0 (39,681 ) Income tax expense (1,195 ) (1,052 ) (8,425 ) 0 (10,672 ) Net income /(loss) $ (88,542 ) $ 8,228 $ 29,961 $ 0 $ (50,353 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou and Changyou segments. Note (2): SBC stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): The elimination represents interest income /(expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. Three Months Ended March 31, 2018 Sohu Sogou Changyou Eliminations Consolidated Revenues (1) $ 69,928 $ 248,384 $ 137,205 $ (522 ) $ 454,995 Segment cost of revenues (64,539 ) (153,804 ) (42,954 ) 14 (261,283 ) Segment gross profit 5,389 94,580 94,251 (508 ) 193,712 SBC (2) in cost of revenues 657 (219 ) 12 0 450 Gross profit 6,046 94,361 94,263 (508 ) 194,162 Operating expenses: Product development (3) (34,566 ) (43,448 ) (34,728 ) 1,914 (110,828 ) Sales and marketing (1) (3) (48,890 ) (26,707 ) (15,436 ) 671 (90,362 ) General and administrative (3) (11,409 ) (5,879 ) (9,169 ) 101 (26,356 ) SBC (2) in operating expenses 3,541 (4,060 ) 2,413 0 1,894 Total operating expenses (91,324 ) (80,094 ) (56,920 ) 2,686 (225,652 ) Operating profit /(loss) (85,278 ) 14,267 37,343 2,178 (31,490 ) Other income /(loss) (3) 4,632 4,386 5,441 (2,178 ) 12,281 Interest income (4) 2,462 3,467 9,169 (7,290 ) 7,808 Interest expense (4) (8,849 ) 0 (1,522 ) 7,290 (3,081 ) Exchange difference (1,863 ) (4,666 ) (2,811 ) 0 (9,340 ) Income /(loss) before income tax expense (88,896 ) 17,454 47,620 0 (23,822 ) Income tax expense (176 ) (2,144 ) (61,059 ) 0 (63,379 ) Net income /(loss) $ (89,072 ) $ 15,310 $ (13,439 ) $ 0 $ (87,201 ) Note (1): The elimination mainly consists of revenues and expenses generated from marketing services among the Sohu, Sogou and Changyou segments. Note (2): SBC stands for share-based compensation expense. Note (3): The elimination mainly consists of leasing income and expenses generated from a building that Sohu leases to Sogou. Note (4): The elimination represents interest income /(expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. |
Segment assets information by segment | As of December 31, 2017 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 98,750 $ 694,207 $ 571,139 $ 0 $ 1,364,096 Accounts receivable, net 86,801 72,117 91,636 (86 ) 250,468 Fixed assets, net 200,561 139,209 189,947 0 529,717 Total assets (1) $ 1,124,759 $ 1,321,036 $ 1,922,023 $ (978,579 ) $ 3,389,239 Note (1): The elimination for segment assets mainly consists of elimination of intra-Group loans between the Sohu segment and the Changyou segment, and elimination of long-term investments in subsidiaries and consolidated VIEs. As of March 31, 2018 Sohu Sogou Changyou Eliminations Consolidated Cash and cash equivalents $ 74,932 $ 352,158 $ 729,318 $ 0 $ 1,156,408 Accounts receivable, net 81,408 55,709 80,121 (90 ) 217,148 Fixed assets, net 208,196 142,766 194,457 0 545,419 Total assets (1) $ 1,065,859 $ 1,374,426 $ 2,008,826 $ (1,004,263 ) $ 3,444,848 Note (1): The elimination for segment assets mainly consists of elimination of intra-Group loans between the Sohu segment and the Changyou segment, and elimination of long-term investments in subsidiaries and consolidated VIEs. |
Share-Based Compensation Expe26
Share-Based Compensation Expense (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
SHARE-BASED COMPENSATION EXPENSE [Abstract] | |
Share-based compensation expense recognized in costs and expenses | Three Months Share-based compensation expense 2017 2018 Cost of revenues $ 186 $ (450 ) Product development expenses 2,327 715 Sales and marketing expenses 665 (89 ) General and administrative expenses 4,051 (2,520 ) $ 7,229 $ (2,344 ) |
Share-based compensation expense recognized for share awards of Sohu (excluding Sohu Video), Sogou, Changyou and Sohu Video | Three Months Share-based compensation expense 2017 2018 For Sohu (excluding Sohu Video) share-based awards $ (2,443 ) $ (4,049 ) For Sogou share-based awards (2) 4,337 4,279 For Changyou share-based awards 5,533 (2,425 ) For Sohu Video share-based awards (1) (198 ) (149 ) $ 7,229 $ (2,344 ) Note (1): The negative amount resulted from re-measured Note (2): 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 and search-related businesses and compensation expense of $4.0 million recognized in the first quarter of 2017 in connection with Sogous repurchase of Sogou Pre-IPO Pre-IPO |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Financial instruments, measured at fair value | Fair value measurements at reporting date using Items As of Quoted Prices Significant Significant Cash equivalents $ 1,136,892 $ 0 $ 1,136,892 $ 0 Short-term investments 818,934 0 818,934 0 Equity investments with readily determinable fair values 21,307 21,307 0 0 Foreign exchange forward contracts recognized in other short-term liabilities 715 0 715 0 Fair value measurements at reporting date using Items As of Quoted Prices Significant Significant Cash equivalents $ 924,738 $ 0 $ 924,738 $ 0 Short-term investments 1,074,538 0 1,074,538 0 Equity investments with readily determinable fair values 12,725 12,725 0 0 |
ASU 2016-01 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Line items in condensed consolidated statement of comprehensive income and balance sheet under adoption of ASU 2016-01 | As reported Without adoption 2016-01 Effect of change Higher/(Lower) Operating profit $ (31,490 ) (31,490 ) 0 Other income, net 12,281 10,918 1,363 Income tax expenses 63,379 63,058 321 Net loss (87,201 ) (88,243 ) 1,042 Foreign currency translation adjustments 37,031 37,111 (80 ) Change in unrealized gain for equity securities with readily determinable fair value 0 882 (882 ) Other comprehensive income 37,031 37,993 (962 ) Comprehensive loss (50,170 ) (50,250 ) 80 Basic net loss per share attributable to Sohu.com Inc. (2.39 ) (2.41 ) 0.02 Diluted net loss per share attributable to Sohu.com Inc. (2.39 ) (2.41 ) 0.02 As reported Without adoption of 2016-01 Effect of change Higher/(Lower) Long term investments, net $ 98,612 98,416 196 Deferred tax liability 95,632 95,517 115 Accumulated other comprehensive income 44,220 52,683 (8,463 ) Accumulated deficit (327,537 ) (335,915 ) 8,378 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
GOODWILL [Abstract] | |
Changes in carrying value of goodwill by segment | Sohu Sogou Changyou Total Balance as of December 31, 2017 Goodwill $ 73,941 5,908 181,421 261,270 Accumulated impairment losses (35,788 ) 0 (153,917 ) (189,705 ) $ 38,153 $ 5,908 $ 27,504 $ 71,565 Transactions in 2018 Foreign currency translation adjustment 631 231 675 1,537 Balance as of March 31, 2018 $ 38,784 $ 6,139 $ 28,179 $ 73,102 Balance as of March 31, 2018 Goodwill $ 71,030 $ 6,139 $ 182,096 $ 259,265 Accumulated impairment losses (32,246 ) 0 (153,917 ) (186,163 ) $ 38,784 $ 6,139 $ 28,179 $ 73,102 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Contractual Obligations | As of March 31, 2018 2019 2020 2021 2022 Thereafter Total Purchase of cinema advertisement slot rights 54,015 59,022 32,845 12,805 1,356 1,352 161,395 Purchase of bandwidth 72,087 2,569 1,242 340 0 0 76,238 Purchase of content and services video 23,311 19,405 1,179 0 0 0 43,895 Operating lease obligations 14,604 9,431 4,087 77 11 0 28,210 Expenditures for operating rights for licensed games with technological feasibility 11,681 3,531 2,633 0 0 0 17,845 Purchase of content and services others 10,251 382 93 33 0 0 10,759 Fees for operating rights for licensed games in development 500 0 0 0 0 0 500 Others 4,850 1,301 0 0 0 0 6,151 Total Payments Required 191,299 95,641 42,079 13,255 1,367 1,352 344,993 |
VIEs (Tables)
VIEs (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
VIES [Abstract] | |
Financial information of consolidated VIEs | As of December 31, March 31, ASSETS: Cash and cash equivalents $ 43,618 $ 17,280 Accounts receivable, net 95,305 80,468 Prepaid and other current assets 26,755 30,302 Short-term investments 12,303 19,132 Intra-Group receivables due from the Companys subsidiaries 398,135 436,640 Total current assets 576,116 583,822 Long-term investments, net 32,266 51,054 Fixed assets, net 2,414 2,448 Intangible assets, net 11,719 10,873 Goodwill 37,291 38,056 Other non-current 2,614 2,542 Total assets $ 662,420 $ 688,795 LIABILITIES: Accounts payable $ 53,842 $ 83,403 Accrued liabilities 76,883 66,470 Receipts in advance and deferred revenue 46,939 48,895 Other current liabilities 97,991 87,950 Intra-Group payables due to the Companys subsidiaries 197,367 231,676 Total current liabilities 473,022 518,394 Long-term taxes payable 14,293 14,794 Deferred tax liabilities 3,451 3,853 Intra-Group payables due to the Companys subsidiaries 20,560 20,678 Total liabilities $ 511,326 $ 557,719 Three months ended March 31, 2017 2018 Net revenue $ 190,708 $ 210,900 Net income /(loss) 9,432 (21,909 ) Three months ended March 31, 2017 2018 Net cash used in operating activities $ (18,854 ) $ (3,624 ) Net cash provided by /(used in) investing activities 4,278 (24,559 ) Net cash provided by financing activities 0 0 |
Sohu.com Inc. Shareholders' E31
Sohu.com Inc. Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 223 $ $ Granted 131 0.001 Exercised (18 ) 0.001 Forfeited or expired 0 Outstanding at March 31, 2018 336 0.001 6.86 11,031 Vested at March 31, 2018 336 0.001 6.86 11,031 Exercisable at March 31, 2018 336 0.001 6.86 11,031 Note (1): The aggregated intrinsic value in the preceding table represents the difference between Sohus closing stock price of $32.88 on March 31, 2018 and the nominal exercise prices of the stock options. |
Restricted share unit activity | Restricted Stock Units Number of Weighted-Average Grant-Date Unvested at January 1, 2018 1 $ 72.92 Granted 0 Vested (1 ) 72.92 Forfeited 0 Unvested at March 31, 2018 0 Expected to vest after March 31, 2018 0 |
Sogou 2010 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, 2018 9,753 $ 0.462 5.56 Granted 1,696 0.001 Exercised (17 ) 0.001 Forfeited or expired (113 ) 0.001 Outstanding at March 31, 2018 11,319 0.398 5.81 88,876 Vested at March 31, 2018 and expected to vest thereafter 10,952 0.411 5.70 85,846 Exercisable at March 31, 2018 1,620 0.001 5.43 13,346 Note (1): The aggregate intrinsic values in the preceding table represent the difference between Sogous closing price of $8.25 per Class A Ordinary Share on March 31, 2018 and the exercise prices of the share options. |
Stock option assumptions | Assumptions Adopted Average risk-free interest rate 2.61%~3.51% Exercise multiple 2~3 Expected forfeiture rate (post-vesting) 0%-12% Weighted average expected option life 9 Volatility rate 39%~47% Dividend yield 0% Weighted average fair value of share options 12.28 |
Sohu Management Sogou Share Option Arrangement [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share option activity | Options Number Of Weighted Weighted Aggregate Outstanding at January 1, 2018 9 $ 0.001 7.38 Granted 0 Exercised 0 Forfeited or expired 0 Outstanding at March 31, 2018 9 0.001 7.14 $ 74 Vested at March 31, 2018 9 0.001 7.14 74 Exercisable at March 31, 2018 9 0.001 7.14 74 Note (1): The aggregate intrinsic value in the preceding table represents the difference between Sogous closing price of $8.25 per Class A ordinary share on March 31, 2018 and the exercise prices of the share options. |
Changyou 2014 Share Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share option activity | Options Number Of Weighted Weighted Aggregate Outstanding at January 1, 2018 947 $ 0.01 7.01 $ 17,240 Granted 0 0.01 Exercised (400 ) 0.01 Forfeited or expired 0 Outstanding at March 31, 2018 547 0.01 6.85 7,622 Vested at March 31, 2018 547 0.01 7,622 Exercisable at March 31, 2018 547 0.01 Note (1): The aggregated intrinsic value in the preceding table represents the difference between Changyous closing price of $27.89 per ADS, or $13.95 per Class A ordinary share, on March 31, 2018 and the nominal exercise price of share option. |
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 3.19 % Exercise multiple 2.8 Expected forfeiture rate (post-vesting) 14 % Weighted average expected option life 3.8 Volatility rate 44.2 % Dividend yield 0.00 % Fair value 0.61 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
NONCONTROLLING INTEREST [Abstract] | |
Noncontrolling interest in consolidated balance sheets | As of December 31, 2017 March 31, 2018 Sogou $ 623,785 $ 648,867 Changyou 442,818 449,389 Total $ 1,066,603 $ 1,098,256 |
Noncontrolling interest in consolidated statements of comprehensive income | Three Months Ended March 31, 2017 2018 Sogou $ 8,398 $ 10,135 Changyou 9,508 (4,518 ) Other (11 ) 0 Total $ 17,895 $ 5,617 |
Net Income _(Loss) per Share (T
Net Income /(Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
NET INCOME /(LOSS) PER SHARE [Abstract] | |
Calculation of basic and diluted net income /(loss) per share | Three Months Ended 2017 2018 Numerator: Net loss attributable to Sohu.com Inc., basic $ (68,248 ) $ (92,818 ) Effect of dilutive securities: Incremental dilution from Sogou 0 (107 ) Incremental dilution from Changyou (416 ) 0 Net loss attributable to Sohu.com Inc., diluted $ (68,664 ) $ (92,925 ) Denominator: Weighted average basic common shares outstanding 38,811 38,904 Effect of dilutive securities: Share options and restricted share units 0 0 Weighted average diluted common shares outstanding 38,811 38,904 Basic net loss per share attributable to Sohu.com Inc. $ (1.76 ) $ (2.39 ) Diluted net loss per share attributable to Sohu.com Inc. $ (1.77 ) $ (2.39 ) |
The Company and Basis of Pres34
The Company and Basis of Presentation (Sogou's Business, Narrative) (Details) - USD ($) $ in Millions | Nov. 13, 2017 | Mar. 31, 2018 | Dec. 31, 2017 |
Organization and Nature of Operations [Line Items] | |||
Common stock, shares outstanding (in shares) | 38,917,000 | 38,898,000 | |
Sogou [Member] | IPO [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Proceeds from IPO, after deducting underwriting discounts and commissions and offering expenses | $ 622.1 | ||
One-time credit to additional paid-in capital | $ 278.4 | ||
Sogou [Member] | Ordinary Shares [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Common stock, shares outstanding (in shares) | 397,183,397 | ||
Sogou [Member] | Class A Ordinary Shares [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Voting right entitled to ordinary shares | One vote per share | ||
Treasury shares listed as outstanding shares for legal purpose | 10,327,500 | ||
Sogou [Member] | Class A Ordinary Shares [Member] | Sohu [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Common stock, shares outstanding (in shares) | 3,717,250 | ||
Sogou [Member] | Class A Ordinary Shares [Member] | Photon Group Limited [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Common stock, shares outstanding (in shares) | 32,000,000 | ||
Sogou [Member] | Class A Ordinary Shares [Member] | Shareholders other than Sohu, Tencent, and Photon [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Common stock, shares outstanding (in shares) | 82,708,272 | ||
Sogou [Member] | Class A Ordinary Shares [Member] | IPO [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Share issued and sold upon initial public offering, number of shares | 50,643,856 | ||
Sogou [Member] | Class A Ordinary Shares [Member] | Over-allotment Option [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Share issued and sold upon initial public offering, number of shares | 5,643,856 | ||
Sogou [Member] | Class B Ordinary Shares [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Voting right entitled to ordinary shares | Ten votes per share | ||
Conversion into Class A ordinary shares, shares, each Class B Ordinary Share | 1 | ||
Sogou [Member] | Class B Ordinary Shares [Member] | Sohu [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Common stock, shares outstanding (in shares) | 127,200,000 | ||
Sogou [Member] | Class B Ordinary Shares [Member] | Tencent [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Common stock, shares outstanding (in shares) | 151,557,875 | ||
Sogou [Member] | ADS [Member] | IPO [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Share issued and sold upon initial public offering, number of shares | 50,643,856 | ||
Sogou [Member] | ADS [Member] | Over-allotment Option [Member] | |||
Organization and Nature of Operations [Line Items] | |||
Share issued and sold upon initial public offering, number of shares | 5,643,856 |
The Company and Basis of Pres35
The Company and Basis of Presentation (Changyou's Business, Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Organization and Nature of Operations [Line Items] | ||
Revenues | $ 454,995 | $ 374,103 |
Product Risk [Member] | Total revenues [Member] | TLBB [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Percentage of revenues derived from games | 11.00% | |
Product Risk [Member] | Total revenues [Member] | Legacy TLBB [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Percentage of revenues derived from games | 6.00% | |
Changyou [Member] | MoboTap [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Disposal of equity interest | $ 3,000 | |
Changyou [Member] | Product Risk [Member] | TLBB [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Revenues | 50,800 | |
Changyou [Member] | Product Risk [Member] | Legacy TLBB [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Revenues | $ 28,200 | |
Changyou [Member] | Product Risk [Member] | Online game revenues [Member] | TLBB [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Percentage of revenues derived from games | 48.00% | |
Changyou [Member] | Product Risk [Member] | Online game revenues [Member] | Legacy TLBB [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Percentage of revenues derived from games | 27.00% | |
Changyou [Member] | Product Risk [Member] | Total revenues [Member] | TLBB [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Percentage of revenues derived from games | 37.00% | |
Changyou [Member] | Product Risk [Member] | Total revenues [Member] | Legacy TLBB [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Percentage of revenues derived from games | 21.00% |
The Company and Basis of Pres36
The Company and Basis of Presentation (Changyou's Share Structure, Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Organization and Nature of Operations [Line Items] | ||
Common stock, shares outstanding (in shares) | 38,917,000 | 38,898,000 |
Changyou [Member] | Sohu.com Inc. [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Percentage of outstanding equity capital held by Sohu.com Inc | 68.00% | |
Voting power held by Sohu.com Inc | 95.00% | |
Changyou [Member] | Ordinary Shares [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Common stock, shares outstanding (in shares) | 105,836,420 | |
Changyou [Member] | Class A Ordinary Shares [Member] | Sohu.com Inc. [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Common stock, shares outstanding (in shares) | 1,500,000 | |
Changyou [Member] | Class A Ordinary Shares [Member] | Shareholders other than Sohu, Tencent, and Photon [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Common stock, shares outstanding (in shares) | 34,086,420 | |
Changyou [Member] | Class B Ordinary Shares [Member] | Sohu.com Inc. [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Common stock, shares outstanding (in shares) | 70,250,000 |
The Company and Basis of Pres37
The Company and Basis of Presentation (Effect of Adoption of ASC 606 in Condensed Consolidated Statement of Comprehensive Income) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Impact of revenue under ASC 606 | $ 454,995 | $ 374,103 |
Revenue-Online advertising-Brand advertising | 56,254 | 81,412 |
Revenue-Online advertising-Search and search related advertising | 220,301 | 142,035 |
Cost of revenue-Online advertising-Search and search related advertising | 144,696 | 82,107 |
Gross profit | 194,162 | 155,224 |
Operating expenses-Sales and marketing | 90,273 | 90,086 |
Operating profit /(loss) | (31,490) | (47,310) |
Income tax expense | 63,379 | 10,672 |
Net loss | $ (87,201) | $ (50,353) |
Basic net loss per share attributable to Sohu.com Inc. | $ (2.39) | $ (1.76) |
Diluted net loss per share attributable to Sohu.com Inc. | $ (2.39) | $ (1.77) |
ASC 606 [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue-Online advertising-Brand advertising | $ 56,254 | |
Revenue-Online advertising-Search and search related advertising | 220,301 | |
Cost of revenue-Online advertising-Search and search related advertising | 144,696 | |
Gross profit | 194,162 | |
Operating expenses-Sales and marketing | 90,273 | |
Operating profit /(loss) | (31,490) | |
Income tax expense | 63,379 | |
Net loss | $ (87,201) | |
Basic net loss per share attributable to Sohu.com Inc. | $ (2.39) | |
Diluted net loss per share attributable to Sohu.com Inc. | $ (2.39) | |
Without adoption of ASC 606 [Member] | ASC 606 [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue-Online advertising-Brand advertising | $ 55,913 | |
Revenue-Online advertising-Search and search related advertising | 213,987 | |
Cost of revenue-Online advertising-Search and search related advertising | 138,955 | |
Gross profit | 193,248 | |
Operating expenses-Sales and marketing | 89,359 | |
Operating profit /(loss) | (31,490) | |
Income tax expense | 63,379 | |
Net loss | $ (87,201) | |
Basic net loss per share attributable to Sohu.com Inc. | $ (2.39) | |
Diluted net loss per share attributable to Sohu.com Inc. | $ (2.39) | |
Effect of change Higher/(Lower) [Member] | ASC 606 [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Impact of revenue under ASC 606 | $ 6,700 | |
Revenue-Online advertising-Brand advertising | 341 | |
Revenue-Online advertising-Search and search related advertising | 6,314 | |
Cost of revenue-Online advertising-Search and search related advertising | 5,741 | |
Gross profit | 914 | |
Operating expenses-Sales and marketing | 914 | |
Operating profit /(loss) | 0 | |
Income tax expense | 0 | |
Net loss | $ 0 | |
Basic net loss per share attributable to Sohu.com Inc. | $ 0 | |
Diluted net loss per share attributable to Sohu.com Inc. | $ 0 |
The Company and Basis of Pres38
The Company and Basis of Presentation (Revenues Disaggregated by Products and Services) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Organization and Nature of Operations [Line Items] | ||
Brand advertising | $ 56,254 | $ 81,412 |
Search and search-related advertising | 220,301 | 142,035 |
Online games | 105,461 | 85,325 |
Others | 72,979 | 65,331 |
Revenues | 454,995 | 374,103 |
Sohu [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Search and search-related advertising | 0 | 0 |
Revenues | 69,739 | 91,964 |
Sogou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Search and search-related advertising | 220,301 | 142,035 |
Revenues | 248,050 | 162,269 |
Changyou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Search and search-related advertising | 0 | 0 |
Revenues | 137,206 | 119,870 |
Sohu Media Portal [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Brand advertising | 30,674 | 36,844 |
Sohu Media Portal [Member] | Sohu [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Brand advertising | 30,674 | 36,844 |
Sohu Media Portal [Member] | Sogou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Brand advertising | 0 | 0 |
Sohu Media Portal [Member] | Changyou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Brand advertising | 0 | 0 |
Sohu Video [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Brand advertising | 12,635 | 21,696 |
Sohu Video [Member] | Sohu [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Brand advertising | 12,635 | 21,696 |
Sohu Video [Member] | Sogou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Brand advertising | 0 | 0 |
Sohu Video [Member] | Changyou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Brand advertising | 0 | 0 |
Focus [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Brand advertising | 7,868 | 17,018 |
Focus [Member] | Sohu [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Brand advertising | 7,868 | 17,018 |
Focus [Member] | Sogou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Brand advertising | 0 | 0 |
Focus [Member] | Changyou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Brand advertising | 0 | 0 |
17173.com Website [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Brand advertising | 5,078 | 5,854 |
17173.com Website [Member] | Sohu [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Brand advertising | 0 | 0 |
17173.com Website [Member] | Sogou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Brand advertising | 0 | 0 |
17173.com Website [Member] | Changyou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Brand advertising | 5,078 | 5,854 |
PC games [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Online games | 59,425 | 64,881 |
PC games [Member] | Sohu [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Online games | 0 | 0 |
PC games [Member] | Sogou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Online games | 0 | 0 |
PC games [Member] | Changyou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Online games | 59,425 | 64,881 |
Mobile games [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Online games | 45,735 | 19,838 |
Mobile games [Member] | Sohu [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Online games | 0 | 0 |
Mobile games [Member] | Sogou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Online games | 0 | 0 |
Mobile games [Member] | Changyou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Online games | 45,735 | 19,838 |
Other games [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Online games | 301 | 606 |
Other games [Member] | Sohu [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Online games | 0 | 0 |
Other games [Member] | Sogou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Online games | 0 | 0 |
Other games [Member] | Changyou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Online games | 301 | 606 |
Paid subscription services [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Others | 9,257 | 6,316 |
Paid subscription services [Member] | Sohu [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Others | 9,257 | 6,316 |
Paid subscription services [Member] | Sogou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Others | 0 | 0 |
Paid subscription services [Member] | Changyou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Others | 0 | 0 |
Cinema advertising business [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Others | 24,870 | 24,600 |
Cinema advertising business [Member] | Sohu [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Others | 0 | 0 |
Cinema advertising business [Member] | Sogou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Others | 0 | 0 |
Cinema advertising business [Member] | Changyou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Others | 24,870 | 24,600 |
Others [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Others | 38,851 | 34,415 |
Others [Member] | Sohu [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Others | 9,305 | 10,090 |
Others [Member] | Sogou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Others | 27,749 | 20,234 |
Others [Member] | Changyou [Member] | ||
Organization and Nature of Operations [Line Items] | ||
Others | $ 1,797 | $ 4,091 |
The Company and Basis of Pres39
The Company and Basis of Presentation (Contract Balances) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
THE COMPANY AND BASIS OF PRESENTATION [Abstract] | ||
Allowance for doubtful accounts and authorized credits | $ 5.5 | $ 5.7 |
Amount of revenue recognized that included in receipts in advance and deferred revenue | $ 104.3 |
Segment Information (Segment Op
Segment Information (Segment Operating Information by Segment) (Details) | 3 Months Ended | ||
Mar. 31, 2018USD ($)Segment | Mar. 31, 2017USD ($) | ||
Operating Segments [Member] | Sohu [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | [1] | $ 69,928,000 | $ 92,492,000 |
Segment cost of revenues | (64,539,000) | (92,202,000) | |
Segment gross profit | 5,389,000 | 290,000 | |
SBC in cost of revenues | [2] | 657,000 | (159,000) |
Gross profit | 6,046,000 | 131,000 | |
Operating expenses: | |||
Product development | [3] | (34,566,000) | (25,979,000) |
Sales and marketing | [1],[3] | (48,890,000) | (55,051,000) |
General and administrative | [3] | (11,409,000) | (10,905,000) |
SBC in operating expenses | [2] | 3,541,000 | 2,806,000 |
Total operating expenses | (91,324,000) | (89,129,000) | |
Operating profit /(loss) | (85,278,000) | (88,998,000) | |
Other income /(loss) | [3] | 4,632,000 | 3,741,000 |
Interest income | [4] | 2,462,000 | 1,671,000 |
Interest expense | [4] | (8,849,000) | (4,376,000) |
Exchange difference | (1,863,000) | 615,000 | |
Income /(loss) before income expense | (88,896,000) | (87,347,000) | |
Income tax expense | (176,000) | (1,195,000) | |
Net loss | (89,072,000) | (88,542,000) | |
Operating Segments [Member] | Sogou [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | [1] | 248,384,000 | 162,284,000 |
Segment cost of revenues | (153,804,000) | (87,454,000) | |
Segment gross profit | 94,580,000 | 74,830,000 | |
SBC in cost of revenues | [2] | (219,000) | (3,000) |
Gross profit | 94,361,000 | 74,827,000 | |
Operating expenses: | |||
Product development | [3] | (43,448,000) | (32,849,000) |
Sales and marketing | [1],[3] | (26,707,000) | (24,765,000) |
General and administrative | [3] | (5,879,000) | (4,635,000) |
SBC in operating expenses | [2] | (4,060,000) | (4,340,000) |
Total operating expenses | (80,094,000) | (66,589,000) | |
Operating profit /(loss) | 14,267,000 | 8,238,000 | |
Other income /(loss) | [3] | 4,386,000 | 23,000 |
Interest income | [4] | 3,467,000 | 1,658,000 |
Interest expense | [4] | 0 | 0 |
Exchange difference | (4,666,000) | (639,000) | |
Income /(loss) before income expense | 17,454,000 | 9,280,000 | |
Income tax expense | (2,144,000) | (1,052,000) | |
Net loss | 15,310,000 | 8,228,000 | |
Operating Segments [Member] | Changyou [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | [1] | 137,205,000 | 119,870,000 |
Segment cost of revenues | (42,954,000) | (39,088,000) | |
Segment gross profit | 94,251,000 | 80,782,000 | |
SBC in cost of revenues | [2] | 12,000 | (24,000) |
Gross profit | 94,263,000 | 80,758,000 | |
Operating expenses: | |||
Product development | [3] | (34,728,000) | (24,404,000) |
Sales and marketing | [1],[3] | (15,436,000) | (10,536,000) |
General and administrative | [3] | (9,169,000) | (8,791,000) |
SBC in operating expenses | [2] | 2,413,000 | (5,509,000) |
Total operating expenses | (56,920,000) | (49,240,000) | |
Operating profit /(loss) | 37,343,000 | 31,518,000 | |
Other income /(loss) | [3] | 5,441,000 | 2,267,000 |
Interest income | [4] | 9,169,000 | 6,416,000 |
Interest expense | [4] | (1,522,000) | (1,073,000) |
Exchange difference | (2,811,000) | (742,000) | |
Income /(loss) before income expense | 47,620,000 | 38,386,000 | |
Income tax expense | (61,059,000) | (8,425,000) | |
Net loss | (13,439,000) | 29,961,000 | |
Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | [1] | (522,000) | (543,000) |
Segment cost of revenues | 14,000 | 51,000 | |
Segment gross profit | (508,000) | (492,000) | |
SBC in cost of revenues | [2] | 0 | 0 |
Gross profit | (508,000) | (492,000) | |
Operating expenses: | |||
Product development | [3] | 1,914,000 | 1,461,000 |
Sales and marketing | [1],[3] | 671,000 | 931,000 |
General and administrative | [3] | 101,000 | 32,000 |
SBC in operating expenses | [2] | 0 | 0 |
Total operating expenses | 2,686,000 | 2,424,000 | |
Operating profit /(loss) | 2,178,000 | 1,932,000 | |
Other income /(loss) | [3] | (2,178,000) | (1,932,000) |
Interest income | [4] | (7,290,000) | (5,274,000) |
Interest expense | [4] | 7,290,000 | 5,274,000 |
Exchange difference | 0 | 0 | |
Income /(loss) before income expense | 0 | 0 | |
Income tax expense | 0 | 0 | |
Net loss | $ 0 | 0 | |
Number of segments | Segment | 3 | ||
Revenues | $ 454,995,000 | 374,103,000 | |
Segment cost of revenues | (261,283,000) | (218,693,000) | |
Segment gross profit | 193,712,000 | 155,410,000 | |
SBC in cost of revenues | [2] | 450,000 | (186,000) |
Gross profit | 194,162,000 | 155,224,000 | |
Product development | [3] | (110,828,000) | (81,771,000) |
Sales and marketing | [1],[3] | (90,362,000) | (89,421,000) |
General and administrative | [3] | (26,356,000) | (24,299,000) |
SBC in operating expenses | [2] | 1,894,000 | (7,043,000) |
Total operating expenses | (225,652,000) | (202,534,000) | |
Operating profit /(loss) | (31,490,000) | (47,310,000) | |
Other income /(loss) | 12,281,000 | 4,099,000 | |
Interest income | 7,808,000 | 4,471,000 | |
Interest expense | (3,081,000) | (175,000) | |
Exchange difference | (9,340,000) | (766,000) | |
Income /(loss) before income expense | (23,822,000) | (39,681,000) | |
Income tax expense | (63,379,000) | (10,672,000) | |
Net loss | (87,201,000) | (50,353,000) | |
Sohu [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 69,739,000 | 91,964,000 | |
Sogou [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 248,050,000 | 162,269,000 | |
Changyou [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 137,206,000 | $ 119,870,000 | |
[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] | The elimination represents interest income /(expense) resulting from intra-Group loans between the Sohu segment and the Changyou segment. |
Segment Information (Segment As
Segment Information (Segment Assets Information by Segment) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Operating Segments [Member] | Sohu.com Inc. [Member] | |||
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | $ 74,932 | $ 98,750 | |
Accounts receivable, net | 81,408 | 86,801 | |
Fixed assets, net | 208,196 | 200,561 | |
Total assets | [1] | 1,065,859 | 1,124,759 |
Operating Segments [Member] | Sogou [Member] | |||
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | 352,158 | 694,207 | |
Accounts receivable, net | 55,709 | 72,117 | |
Fixed assets, net | 142,766 | 139,209 | |
Total assets | [1] | 1,374,426 | 1,321,036 |
Operating Segments [Member] | Changyou [Member] | |||
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | 729,318 | 571,139 | |
Accounts receivable, net | 80,121 | 91,636 | |
Fixed assets, net | 194,457 | 189,947 | |
Total assets | [1] | 2,008,826 | 1,922,023 |
Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Accounts receivable, net | (90) | (86) | |
Fixed assets, net | 0 | 0 | |
Total assets | [1] | (1,004,263) | (978,579) |
Cash and cash equivalents | 1,156,408 | 1,364,096 | |
Accounts receivable, net | 217,148 | 250,468 | |
Fixed assets, net | 545,419 | 529,717 | |
Total assets | $ 3,444,848 | $ 3,389,239 | |
[1] | The elimination for segment assets mainly consists of elimination of intra-Group loans between the Sohu segment and the Changyou segment, and elimination of long-term investments in subsidiaries and consolidated VIEs. |
Share-Based Compensation Expe42
Share-Based Compensation Expense (Narrative) (Details) - USD ($) | Jan. 04, 2012 | Mar. 31, 2018 | Mar. 31, 2017 | Nov. 30, 2017 | Sep. 30, 2017 | Jul. 28, 2016 | May 31, 2016 | Jun. 01, 2015 | Feb. 28, 2015 | Jul. 02, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Capitalized share-based compensation expense | $ 0 | $ 0 | ||||||||
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] | Share 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 | 6,000 | 32,000 | 13,000 | 1,068,000 | ||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Installments of share options granted | Four equal installments | |||||||||
Award vesting period | 4 years | |||||||||
Number of options granted | 1,999,000 | 100,000 | 1,998,000 | |||||||
Changyou [Member] | Changyou 2014 Share Incentive Plan [Member] | Share 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 | |||||||||
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] | Share 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 |
Share-Based Compensation Expe43
Share-Based Compensation Expense (Share-based Compensation Expense Recognized in Costs and Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | $ (2,344) | $ 7,229 |
Cost of revenues [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | (450) | 186 |
Product development expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | 715 | 2,327 |
Sales and marketing expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | (89) | 665 |
General and administrative expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | $ (2,520) | $ 4,051 |
Share-Based Compensation Expe44
Share-Based Compensation Expense (Share-based Compensation Expense Recognized for Share Awards of Sohu(excluding Sohu Video), Sogou, Changyou and Sohu Video) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ (2,344) | $ 7,229 | |
Sohu (excluding Sohu Video) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | (4,049) | (2,443) | |
Sogou [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | [1] | 4,279 | 4,337 |
Sogou [Member] | Former President and CFO of Sohu Group [Member] | Class A Ordinary Shares [Member] | Pre-IPO [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 4,000 | ||
Changyou [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | (2,425) | 5,533 | |
Sohu Video [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | [2] | $ (149) | $ (198) |
[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 and search-related businesses, and compensation expense of $4.0 million recognized in the first quarter of 2017 in connection with Sogou's repurchase of Sogou Pre-IPO Class A Ordinary Shares from the former President and Chief Financial Officer of the Sohu Group, which is equal to the excess of the repurchase price over the fair value of the Sogou Pre-IPO Class A Ordinary Shares as of the repurchase date. | ||
[2] | The negative amount resulted from re-measured compensation expense based on the then-current fair value of the awards on the reporting date. |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Feb. 29, 2016 | Apr. 30, 2015 | Aug. 31, 2014 | Mar. 31, 2018 | Mar. 31, 2017 | |
Related Party Transaction [Line Items] | |||||
Interest expense incurred | $ 172 | $ 177 | |||
Interest income earned | 302 | $ 280 | |||
Changyou [Member] | Fox Financial [Member] | |||||
Related Party Transaction [Line Items] | |||||
Loans payable to related parities | 30,800 | ||||
Loans receivable from related parities | 31,000 | ||||
Interest expense incurred | 200 | ||||
Interest income earned | 300 | ||||
Interest expense payable to related parities | 1,600 | ||||
Interest income receivable from related parities | $ 2,600 | ||||
Sohu [Member] | Fox Financial [Member] | |||||
Related Party Transaction [Line Items] | |||||
Investment amount in period | $ 10,500 | $ 16,100 | $ 4,800 |
Intra-Group Loan and Share Pl46
Intra-Group Loan and Share Pledge Agreement (Details) ¥ in Millions, $ in Millions | Oct. 24, 2016USD ($)shares | Apr. 30, 2017USD ($) | Apr. 30, 2017CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Mar. 31, 2018USD ($)shares | Mar. 31, 2018CNY (¥)shares | Oct. 24, 2016CNY (¥)shares |
Sohu Media [Member] | AmazGame [Member] | Loan Agreement [Member] | ||||||||||
Intracompany Loan and Share Pledge Agreement [Line Items] | ||||||||||
Maximum amount of loan Sohu Media can borrow from AmazGame | $ 159 | ¥ 1,000 | ||||||||
Annual interest rate | 6.00% | 6.00% | ||||||||
Loans received from related parties | $ 47.7 | ¥ 300 | $ 31.8 | ¥ 200 | $ 79.5 | ¥ 500 | ||||
Total outstanding balance of loan received from related parties | $ 159 | ¥ 1,000 | ||||||||
Sohu Game [Member] | Changyou [Member] | Share Pledge Agreement [Member] | Class B ordinary shares [Member] | ||||||||||
Intracompany Loan and Share Pledge Agreement [Line Items] | ||||||||||
Shares pledged | 11,386,228 | 13,704,663 | 13,704,663 | 11,386,228 | ||||||
Sohu Game [Member] | Changyou [Member] | Share Pledge Agreement [Member] | ADS [Member] | Minimum [Member] | ||||||||||
Intracompany Loan and Share Pledge Agreement [Line Items] | ||||||||||
Consecutive trading days | 10 days | |||||||||
Percentage of share price drop | 20.00% | |||||||||
Percentage of additional incremental share price drop | 20.00% |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments, Measured at Fair Value) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 924,738,000 | $ 1,136,892,000 |
Short-term investments | 1,074,538,000 | 818,934,000 |
Equity investments with readily determinable fair values | 12,725,000 | 21,307,000 |
Foreign exchange forward contracts recognized in other short-term liabilities | 0 | 715,000 |
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 |
Short-term investments | 0 | 0 |
Equity investments with readily determinable fair values | 12,725,000 | 21,307,000 |
Foreign exchange forward contracts recognized in other short-term liabilities | 0 | |
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 | 924,738,000 | 1,136,892,000 |
Short-term investments | 1,074,538,000 | 818,934,000 |
Equity investments with readily determinable fair values | 0 | 0 |
Foreign exchange forward contracts recognized in other short-term liabilities | 715,000 | |
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 |
Short-term investments | 0 | 0 |
Equity investments with readily determinable fair values | $ 0 | 0 |
Foreign exchange forward contracts recognized in other short-term liabilities | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) ¥ in Millions | Jan. 02, 2018USD ($) | Jan. 02, 2018CNY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Jan. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Jul. 31, 2017USD ($) | Jul. 31, 2017CNY (¥) | May 31, 2017USD ($) | Mar. 31, 2017 | Feb. 29, 2016USD ($) | Apr. 30, 2015USD ($) | Aug. 31, 2014USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Sep. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Sep. 30, 2017CNY (¥) | Aug. 02, 2017 | May 31, 2017CNY (¥) | Jan. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Aug. 12, 2014USD ($) | May 05, 2011USD ($) | May 05, 2011CNY (¥) |
Short-term Investments [Abstract] | ||||||||||||||||||||||||||||
Investments in financial instruments | $ 1,074,538,000 | $ 1,074,538,000 | $ 818,934,000 | |||||||||||||||||||||||||
Changes in fair value of short-term investments | 8,800,000 | $ 2,600,000 | ||||||||||||||||||||||||||
Foreign Exchange Forward Contracts [Abstract] | ||||||||||||||||||||||||||||
Unrealized loss from changes in fair values of forward contracts | 500,000 | |||||||||||||||||||||||||||
Cash outflows related to forward contracts | 0 | 900,000 | ||||||||||||||||||||||||||
Carrying value of foreign exchange forward contracts | 0 | 0 | 715,000 | |||||||||||||||||||||||||
Equity investments [Abstract] | ||||||||||||||||||||||||||||
Fair value of equity interests | 12,725,000 | 12,725,000 | 21,307,000 | |||||||||||||||||||||||||
Short-term Banks Loans [Abstract] | ||||||||||||||||||||||||||||
Short-term bank loans | 63,612,000 | 63,612,000 | 61,216,000 | |||||||||||||||||||||||||
Long-term Payables [Abstract] | ||||||||||||||||||||||||||||
Long-term bank loans | 127,224,000 | 127,224,000 | 122,433,000 | |||||||||||||||||||||||||
Fox Financial [Member] | ||||||||||||||||||||||||||||
Equity investments [Abstract] | ||||||||||||||||||||||||||||
Dilution gain | $ 700,000 | |||||||||||||||||||||||||||
Keyeast [Member] | ||||||||||||||||||||||||||||
Equity investments [Abstract] | ||||||||||||||||||||||||||||
Impairment loss | $ 5,800,000 | |||||||||||||||||||||||||||
Changyou [Member] | ||||||||||||||||||||||||||||
Foreign Exchange Forward Contracts [Abstract] | ||||||||||||||||||||||||||||
Aggregate nominal amount of foreign exchange forward contracts | $ 50,000,000 | $ 100,000,000 | ||||||||||||||||||||||||||
Realized loss on settled foreign exchange forward contracts | $ 200,000 | |||||||||||||||||||||||||||
Changyou [Member] | MoboTap [Member] | ||||||||||||||||||||||||||||
Equity investments [Abstract] | ||||||||||||||||||||||||||||
Disposal of equity interest | 3,000,000 | |||||||||||||||||||||||||||
Sogou [Member] | Zhihu [Member] | ||||||||||||||||||||||||||||
Equity investments [Abstract] | ||||||||||||||||||||||||||||
Long-term investment, amount | 18,900,000 | 18,900,000 | ||||||||||||||||||||||||||
Sogou [Member] | Hainan Yun Jiang [Member] | ||||||||||||||||||||||||||||
Equity investments [Abstract] | ||||||||||||||||||||||||||||
Investment amount in period | 12,700,000 | ¥ 80 | ||||||||||||||||||||||||||
Sohu [Member] | Factoring Contract with recourse with HSBC [Member] | HSBC [Member] | ||||||||||||||||||||||||||||
Short-term Banks Loans [Abstract] | ||||||||||||||||||||||||||||
Short-term loans may borrow from bank | $ 28,600,000 | ¥ 180 | ||||||||||||||||||||||||||
Accounts receivable to secure short-term bank loan | 31,500,000 | 198 | ||||||||||||||||||||||||||
Short-term bank loans | 0 | 0 | 0 | |||||||||||||||||||||||||
Sohu [Member] | Credit agreement with Ping An Bank [Member] | Ping An Bank [Member] | ||||||||||||||||||||||||||||
Short-term Banks Loans [Abstract] | ||||||||||||||||||||||||||||
Short-term loans may borrow from bank | $ 95,400,000 | $ 397,600,000 | 95,400,000 | ¥ 600 | ¥ 2,500 | |||||||||||||||||||||||
Short-term bank loans | 63,600,000 | $ 63,600,000 | ¥ 400 | 61,200,000 | ¥ 400 | |||||||||||||||||||||||
Times over reference interest rate | 150.00% | 150.00% | 115.00% | |||||||||||||||||||||||||
Loan received from bank | $ 63,600,000 | ¥ 400 | ||||||||||||||||||||||||||
Short-term loan, interest rate | 6.525% | 6.525% | ||||||||||||||||||||||||||
Sohu [Member] | Credit agreement with ICBC [Member] | ICBC [Member] | ||||||||||||||||||||||||||||
Long-term Payables [Abstract] | ||||||||||||||||||||||||||||
Loans may borrow from bank | $ 127,200,000 | $ 127,200,000 | ¥ 800 | |||||||||||||||||||||||||
Installments of long-term loan payable | Four equal installments | Four equal installments | ||||||||||||||||||||||||||
Additional interest rate over LPR | 1.20% | |||||||||||||||||||||||||||
Long-term bank loans | 127,200,000 | $ 127,200,000 | 800 | $ 122,400,000 | ¥ 800 | |||||||||||||||||||||||
Sohu [Member] | Fox Financial [Member] | ||||||||||||||||||||||||||||
Equity investments [Abstract] | ||||||||||||||||||||||||||||
Investment amount in period | $ 10,500,000 | $ 16,100,000 | $ 4,800,000 | |||||||||||||||||||||||||
Carrying value of equity method investment | 24,500,000 | 24,500,000 | ||||||||||||||||||||||||||
Sohu [Member] | Fox Financial [Member] | Ordinary Shares [Member] | ||||||||||||||||||||||||||||
Equity investments [Abstract] | ||||||||||||||||||||||||||||
Equity method investment, ownership percentage in Fox Financial, before dilution | 7.00% | |||||||||||||||||||||||||||
Equity method investment, ownership percentage in Fox Financial, after dilution | 6.00% | |||||||||||||||||||||||||||
Sohu [Member] | Keyeast [Member] | ||||||||||||||||||||||||||||
Equity investments [Abstract] | ||||||||||||||||||||||||||||
Reclassification of other comprehensive income to accumulated deficit | $ 900,000 | |||||||||||||||||||||||||||
Disposal of equity interest | 11,200,000 | |||||||||||||||||||||||||||
Disposal gain of equity interest | 1,000,000 | |||||||||||||||||||||||||||
Sohu [Member] | Keyeast [Member] | Ordinary Shares [Member] | ||||||||||||||||||||||||||||
Equity investments [Abstract] | ||||||||||||||||||||||||||||
Percentage of total outstanding common shares acquired | 6.00% | |||||||||||||||||||||||||||
Purchase price of equity investment | $ 15,100,000 | |||||||||||||||||||||||||||
Sohu [Member] | Hylink [Member] | ||||||||||||||||||||||||||||
Equity investments [Abstract] | ||||||||||||||||||||||||||||
Reclassification of other comprehensive income to accumulated deficit | $ 6,600,000 | ¥ 43.2 | ||||||||||||||||||||||||||
Percentage of equity interest acquired and accounted under cost method | 2.00% | 2.00% | ||||||||||||||||||||||||||
Purchase price of equity interest acquired and accounted under cost method | $ 2,300,000 | ¥ 15 | ||||||||||||||||||||||||||
Percentage of equity interest after dilution and reclassified as equity investments with readily determinable fair values | 1.50% | |||||||||||||||||||||||||||
Fair value of equity interests | $ 12,700,000 | 12,700,000 | ¥ 80 | |||||||||||||||||||||||||
Unrealized gain representing change in fair value | $ 1,200,000 | ¥ 7.4 |
Fair Value Measurements (Compar
Fair Value Measurements (Comparative Presentations of Line Items in Condensed Consolidated Statement of Comprenhensive Income) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating profit | $ (31,490) | $ (47,310) |
Other income, net | 12,281 | 4,099 |
Income tax expense | 63,379 | 10,672 |
Net loss | (87,201) | (50,353) |
Foreign currency translation adjustments | 37,031 | 4,968 |
Change in unrealized gain for equity securities with readily determinable fair value | 0 | (678) |
Other comprehensive income | 37,031 | 4,290 |
Comprehensive loss | $ (50,170) | $ (46,063) |
Basic net loss per share attributable to Sohu.com Inc. | $ (2.39) | $ (1.76) |
Diluted net loss per share attributable to Sohu.com Inc. | $ (2.39) | $ (1.77) |
ASU 2016-01 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating profit | $ (31,490) | |
Other income, net | 12,281 | |
Income tax expense | 63,379 | |
Net loss | (87,201) | |
Foreign currency translation adjustments | 37,031 | |
Change in unrealized gain for equity securities with readily determinable fair value | 0 | |
Other comprehensive income | 37,031 | |
Comprehensive loss | $ (50,170) | |
Basic net loss per share attributable to Sohu.com Inc. | $ (2.39) | |
Diluted net loss per share attributable to Sohu.com Inc. | $ (2.39) | |
ASU 2016-01 [Member] | Without Adoption of Accounting Standards Update [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating profit | $ (31,490) | |
Other income, net | 10,918 | |
Income tax expense | 63,058 | |
Net loss | (88,243) | |
Foreign currency translation adjustments | 37,111 | |
Change in unrealized gain for equity securities with readily determinable fair value | 882 | |
Other comprehensive income | 37,993 | |
Comprehensive loss | $ (50,250) | |
Basic net loss per share attributable to Sohu.com Inc. | $ (2.41) | |
Diluted net loss per share attributable to Sohu.com Inc. | $ (2.41) | |
ASU 2016-01 [Member] | Effect of Change with Adoption of Accounting Standards Update [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating profit | $ 0 | |
Other income, net | 1,363 | |
Income tax expense | 321 | |
Net loss | 1,042 | |
Foreign currency translation adjustments | (80) | |
Change in unrealized gain for equity securities with readily determinable fair value | (882) | |
Other comprehensive income | (962) | |
Comprehensive loss | $ 80 | |
Basic net loss per share attributable to Sohu.com Inc. | $ 0.02 | |
Diluted net loss per share attributable to Sohu.com Inc. | $ 0.02 |
Fair Value Measurements (Comp50
Fair Value Measurements (Comparative Presentations of Line Items in Condensed Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Long term investments, net | $ 98,612 | $ 90,145 |
Deferred tax liabilities | 95,632 | 43,392 |
Accumulated other comprehensive income | 44,220 | 38,212 |
Accumulated deficit | (327,537) | $ (242,220) |
ASU 2016-01 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Long term investments, net | 98,612 | |
Deferred tax liabilities | 95,632 | |
Accumulated other comprehensive income | 44,220 | |
Accumulated deficit | (327,537) | |
ASU 2016-01 [Member] | Without Adoption of Accounting Standards Update [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Long term investments, net | 98,416 | |
Deferred tax liabilities | 95,517 | |
Accumulated other comprehensive income | 52,683 | |
Accumulated deficit | (335,915) | |
ASU 2016-01 [Member] | Effect of Change with Adoption of Accounting Standards Update [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Long term investments, net | 196 | |
Deferred tax liabilities | 115 | |
Accumulated other comprehensive income | (8,463) | |
Accumulated deficit | $ 8,378 |
Goodwill (Carrying Value of Goo
Goodwill (Carrying Value of Goodwill by Segment) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | $ 261,270 |
Accumulated impairment losses, Beginning Balance | (189,705) |
Goodwill, Net, Beginning Balance | 71,565 |
Transactions in Period [Abstract] | |
Foreign currency translation adjustment | 1,537 |
Goodwill, Ending Balance | 259,265 |
Accumulated impairment losses, Ending Balance | (186,163) |
Goodwill, Net, Ending Balance | 73,102 |
Operating Segments [Member] | Sohu.com Inc. [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 73,941 |
Accumulated impairment losses, Beginning Balance | (35,788) |
Goodwill, Net, Beginning Balance | 38,153 |
Transactions in Period [Abstract] | |
Foreign currency translation adjustment | 631 |
Goodwill, Ending Balance | 71,030 |
Accumulated impairment losses, Ending Balance | (32,246) |
Goodwill, Net, Ending Balance | 38,784 |
Operating Segments [Member] | Sogou [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 5,908 |
Accumulated impairment losses, Beginning Balance | 0 |
Goodwill, Net, Beginning Balance | 5,908 |
Transactions in Period [Abstract] | |
Foreign currency translation adjustment | 231 |
Goodwill, Ending Balance | 6,139 |
Accumulated impairment losses, Ending Balance | 0 |
Goodwill, Net, Ending Balance | 6,139 |
Operating Segments [Member] | Changyou [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 181,421 |
Accumulated impairment losses, Beginning Balance | (153,917) |
Goodwill, Net, Beginning Balance | 27,504 |
Transactions in Period [Abstract] | |
Foreign currency translation adjustment | 675 |
Goodwill, Ending Balance | 182,096 |
Accumulated impairment losses, Ending Balance | (153,917) |
Goodwill, Net, Ending Balance | $ 28,179 |
Taxation (PRC Corporate Income
Taxation (PRC Corporate Income Tax) (Details) - State Administration of Taxation, China [Member] | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2016 | |
Income Tax and Tax Rate [Line Items] | ||
Unified income tax rate | 25.00% | |
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% | |
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% | |
Key National Software Enterprise [Member] | AmazGame [Member] | ||
Income Tax and Tax Rate [Line Items] | ||
Preferential income tax rate | 10.00% |
Taxation (PRC Withholding Tax o
Taxation (PRC Withholding Tax on Dividends) (Details) - USD ($) $ in Millions | Apr. 05, 2018 | Mar. 31, 2018 |
State Administration of Taxation, China [Member] | ||
Withholding tax on dividends [Line Items] | ||
Withholding income tax rate for dividends, foreign invested enterprises to foreign holding companies | 10.00% | |
Changyou [Member] | ||
Withholding tax on dividends [Line Items] | ||
Accrual of additional withholding income taxes recognized | $ 47 | |
Deferred tax liabilities related to withholding tax | $ 82.7 | |
Changyou [Member] | Subsequent Event [Member] | ||
Withholding tax on dividends [Line Items] | ||
Amount of special cash dividend | $ 500 | |
HONG KONG | State Administration of Taxation, China [Member] | ||
Withholding tax on dividends [Line Items] | ||
Preferential withholding tax rate on dividends, foreign invested enterprises | 5.00% |
Taxation (PRC Value-Added Tax a
Taxation (PRC Value-Added Tax and U.S. Corporate Income Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Value added tax and income tax [Line Items] | ||
U.S. corporate income tax rate | 21.00% | |
One-time transition tax related to U.S. tax reform | $ 218.5 | |
Reduction of deferred U.S. income tax liability | $ 3.7 | |
Prior Tax Years [Member] | ||
Value added tax and income tax [Line Items] | ||
U.S. corporate income tax rate | 35.00% | |
State Administration of Taxation, China [Member] | ||
Value added tax and income tax [Line Items] | ||
Value-added tax rate | 6.00% |
Commitments and Contingencies55
Commitments and Contingencies (Contractual Obligation) (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Contractual Obligation [Line Items] | |
2,018 | $ 191,299 |
2,019 | 95,641 |
2,020 | 42,079 |
2,021 | 13,255 |
2,022 | 1,367 |
Thereafter | 1,352 |
Total Payments Required | 344,993 |
Sogou [Member] | |
Contractual Obligation [Line Items] | |
Estimated litigation contingencies | 3,800 |
Purchase of cinema advertisement slot rights [Member] | |
Contractual Obligation [Line Items] | |
2,018 | 54,015 |
2,019 | 59,022 |
2,020 | 32,845 |
2,021 | 12,805 |
2,022 | 1,356 |
Thereafter | 1,352 |
Total Payments Required | 161,395 |
Purchase of bandwidth [Member] | |
Contractual Obligation [Line Items] | |
2,018 | 72,087 |
2,019 | 2,569 |
2,020 | 1,242 |
2,021 | 340 |
2,022 | 0 |
Thereafter | 0 |
Total Payments Required | 76,238 |
Purchase of content and services - video [Member] | |
Contractual Obligation [Line Items] | |
2,018 | 23,311 |
2,019 | 19,405 |
2,020 | 1,179 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Total Payments Required | 43,895 |
Operating lease obligations [Member] | |
Contractual Obligation [Line Items] | |
2,018 | 14,604 |
2,019 | 9,431 |
2,020 | 4,087 |
2,021 | 77 |
2,022 | 11 |
Thereafter | 0 |
Total Payments Required | 28,210 |
Expenditures for operating rights for licensed games with technological feasibility [Member] | |
Contractual Obligation [Line Items] | |
2,018 | 11,681 |
2,019 | 3,531 |
2,020 | 2,633 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Total Payments Required | 17,845 |
Purchase of content and services - others [Member] | |
Contractual Obligation [Line Items] | |
2,018 | 10,251 |
2,019 | 382 |
2,020 | 93 |
2,021 | 33 |
2,022 | 0 |
Thereafter | 0 |
Total Payments Required | 10,759 |
Fees for operating rights for licensed games in development [Member] | |
Contractual Obligation [Line Items] | |
2,018 | 500 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Total Payments Required | 500 |
Others [Member] | |
Contractual Obligation [Line Items] | |
2,018 | 4,850 |
2,019 | 1,301 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Total Payments Required | $ 6,151 |
VIEs (VIEs Consolidated within
VIEs (VIEs Consolidated within Sohu Group, Basic Information for Principal VIEs and Subsidiaries of Principal VIEs) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Oct. 31, 2016 | Mar. 31, 2018 | |
Variable Interest Entity [Line Items] | ||
Aggregate amount of loans due from related parties | $ 7.7 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Registered capital and PRC statutory reserves | $ 71.9 | |
High Century [Member] | Dr. Charles Zhang [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 80.00% | |
High Century [Member] | Wei Li [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 20.00% | |
Heng Da Yi Tong [Member] | Dr. Charles Zhang [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 80.00% | |
Heng Da Yi Tong [Member] | Wei Li [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 20.00% | |
Sohu Internet [Member] | High Century [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Donglin [Member] | Sohu Internet [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Tianjin Jinhu [Member] | Ye Deng [Member] | ||
Variable Interest Entity [Line Items] | ||
Transferred equity interest to new shareholders, percentage | 50.00% | |
Tianjin Jinhu [Member] | Xuemei Zhang [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 50.00% | |
Tianjin Jinhu [Member] | Xiufeng Deng [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 50.00% | |
Guangzhou Qianjun [Member] | Tianjin Jinhu [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Focus Interactive [Member] | Heng Da Yi Tong [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Sogou Information [Member] | High Century [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 45.00% | |
Sogou Information [Member] | Xiaochuan Wang [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 10.00% | |
Sogou Information [Member] | Tencent [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 45.00% | |
Gamease [Member] | High Century [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Shanghai ICE [Member] | Gamease [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% | |
Guanyou Gamespace [Member] | Changyou Star [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% |
VIEs (VIEs Consolidated withi57
VIEs (VIEs Consolidated within Sohu Group, Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
ASSETS: | |||
Cash and cash equivalents | $ 1,156,408 | $ 1,364,096 | |
Accounts receivable, net | 217,148 | 250,468 | |
Prepaid and other current assets | 211,696 | 192,675 | |
Short-term investments | 1,074,538 | 818,934 | |
Long-term investments, net | 98,612 | 90,145 | |
Fixed assets, net | 545,419 | 529,717 | |
Intangible assets, net | 19,908 | 23,060 | |
Goodwill | 73,102 | 71,565 | |
Other non-current assets | 41,638 | 40,169 | |
LIABILITIES: | |||
Accounts payable | 347,955 | 288,394 | |
Accrued liabilities | 351,732 | 343,106 | |
Receipts in advance and deferred revenue | 135,986 | 127,758 | |
Long-term taxes payable | 249,672 | 249,618 | |
Deferred tax liabilities | 95,632 | 43,392 | |
Net revenue | 454,995 | $ 374,103 | |
Net income /(loss) | (87,201) | (50,353) | |
Net cash used in operating activities | 18,630 | (31,670) | |
Net cash provided by /(used in) investing activities | (249,343) | (62,756) | |
Net cash provided by financing activities | 4 | (2,740) | |
Consolidated VIEs [Member] | |||
ASSETS: | |||
Cash and cash equivalents | 17,280 | 43,618 | |
Accounts receivable, net | 80,468 | 95,305 | |
Prepaid and other current assets | 30,302 | 26,755 | |
Short-term investments | 19,132 | 12,303 | |
Intra-Group receivables due from the Company's subsidiaries | 436,640 | 398,135 | |
Total current assets | 583,822 | 576,116 | |
Long-term investments, net | 51,054 | 32,266 | |
Fixed assets, net | 2,448 | 2,414 | |
Intangible assets, net | 10,873 | 11,719 | |
Goodwill | 38,056 | 37,291 | |
Other non-current assets | 2,542 | 2,614 | |
Total assets | 688,795 | 662,420 | |
LIABILITIES: | |||
Accounts payable | 83,403 | 53,842 | |
Accrued liabilities | 66,470 | 76,883 | |
Receipts in advance and deferred revenue | 48,895 | 46,939 | |
Other current liabilities | 87,950 | 97,991 | |
Intra-Group payables due to the Company's subsidiaries | 231,676 | 197,367 | |
Total current liabilities | 518,394 | 473,022 | |
Long-term taxes payable | 14,794 | 14,293 | |
Deferred tax liabilities | 3,853 | 3,451 | |
Intra-Group payables due to the Company's subsidiaries | 20,678 | 20,560 | |
Total liabilities | 557,719 | $ 511,326 | |
Net revenue | 210,900 | 190,708 | |
Net income /(loss) | (21,909) | 9,432 | |
Net cash used in operating activities | (3,624) | (18,854) | |
Net cash provided by /(used in) investing activities | (24,559) | 4,278 | |
Net cash provided by financing activities | $ 0 | $ 0 |
VIEs (VIEs Consolidated withi58
VIEs (VIEs Consolidated within Sohu Group, Summary of Significant Agreements Currently in Effect) (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Sogou Technology [Member] | Shareholders of Sogou Information [Member] | |
Variable Interest Entity [Line Items] | |
Powers of attorney term | 10 years |
Sogou Technology [Member] | Sogou Information [Member] | |
Variable Interest Entity [Line Items] | |
Technology consulting and service agreement term | 10 years |
Sogou Technology [Member] | Sogou Information [Member] | Shareholders of Sogou Information [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Video Tianjin [Member] | Shareholders of Tianjin Jinhu [Member] | |
Variable Interest Entity [Line Items] | |
Powers of attorney term | 10 years |
Video Tianjin [Member] | Tianjin Jinhu [Member] | |
Variable Interest Entity [Line Items] | |
Technology consulting and service agreement term | 10 years |
Video Tianjin [Member] | Tianjin Jinhu [Member] | Shareholders of Tianjin Jinhu [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
AmazGame [Member] | Shareholders of Gamease [Member] | |
Variable Interest Entity [Line Items] | |
Powers of attorney term | 10 years |
AmazGame [Member] | Gamease [Member] | Shareholders of Gamease [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Percentage of exchange equity interests due to contributions to registered capital of equity | 100.00% |
Gamespace [Member] | Shareholders of Guanyou Gamespace [Member] | |
Variable Interest Entity [Line Items] | |
Powers of attorney term | 10 years |
Gamespace [Member] | Guanyou Gamespace [Member] | Shareholders of Guanyou Gamespace [Member] | |
Variable Interest Entity [Line Items] | |
Business operation agreement term | 10 years |
Percentage of exchange equity interests due to contributions to registered capital of equity | 100.00% |
Sohu Era [Member] | Sohu Internet [Member] | |
Variable Interest Entity [Line Items] | |
Technology consulting and service agreement term | 2 years |
Sohu.com Inc. Shareholders' E59
Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Narrative) (Details) - Sohu 2010 Stock Incentive Plan [Member] - Common Stock [Member] - shares | 3 Months Ended | |
Mar. 31, 2018 | Jul. 02, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance | 1,500,000 | |
Maximum term of share rights granted under share incentive plan | 10 years | |
Plan expiration date | Jul. 1, 2020 | |
Shares available for grant | 587,530 |
Sohu.com Inc. Shareholders' E60
Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Stock Option Activity, Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Nov. 30, 2017 | Sep. 30, 2017 | May 31, 2016 | Feb. 28, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ (2,344) | $ 7,229 | |||||
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 | 562,500 | 131,000 | |||||
Number of share options vested | 562,500 | ||||||
Total fair value of stock options granted | $ 22,400 | ||||||
Share-based compensation expense | $ (4,000) | (2,500) | |||||
Total fair values of share options vested | 4,500 | 7,000 | |||||
Total intrinsic value of share options exercised | $ 600 | $ 3,600 | |||||
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 | 6,000 | 32,000 | 13,000 | 1,068,000 | |||
Exercise prices of option granted | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||
Installments of stock options granted | Four equal installments | ||||||
Award vesting period | 4 years |
Sohu.com Inc. Shareholders' E61
Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Stock Option Activity) (Details) - Sohu 2010 Stock Incentive Plan [Member] - Stock Options [Member] $ / shares in Units, $ in Thousands | Mar. 31, 2018USD ($)Years$ / sharesshares | Mar. 31, 2018USD ($)Years$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares, Outstanding, Beginning Balance | 223,000 | |||
Number of Shares, Granted | 562,500 | 131,000 | ||
Number of Shares, Exercised | (18,000) | |||
Number of Shares, Forfeited or expired | 0 | |||
Number of Shares, Outstanding, Ending Balance | 336,000 | 336,000 | ||
Number of Shares, Vested, Ending balance | 336,000 | 336,000 | ||
Number of Shares, Exercisable, Ending balance | 336,000 | 336,000 | ||
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 | 0.001 | ||
Weighted Average Exercise Price, Vested, Ending balance | $ / shares | 0.001 | 0.001 | ||
Weighted Average Exercise Price, Exercisable, Ending balance | $ / shares | $ 0.001 | $ 0.001 | ||
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | Years | 6.86 | 6.86 | ||
Weighted Average Remaining Contractual Life (Years), Vested, Ending balance | Years | 6.86 | 6.86 | ||
Weighted Average Remaining Contractual Life (Years), Exercisable, Ending balance | Years | 6.86 | 6.86 | ||
Aggregate Intrinsic Value, Outstanding, Ending balance | $ | $ 11,031 | [1] | $ 11,031 | [1] |
Aggregate Intrinsic Value, Vested, Ending balance | $ | 11,031 | [1] | ||
Aggregate Intrinsic Value, Exercisable, Ending balance | $ | $ 11,031 | [1] | $ 11,031 | [1] |
Closing stock price | $ / shares | $ 32.88 | $ 32.88 | ||
[1] | The aggregated intrinsic value in the preceding table represents the difference between Sohu's closing stock price of $32.88 on March 31, 2018 and the nominal exercise prices of the stock options. |
Sohu.com Inc. Shareholders' E62
Sohu.com Inc. Shareholders' Equity (Sohu's 2010 Stock Incentive Plan, Restricted Share Unit Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ (2,344,000) | $ 7,229,000 |
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 | 1 | |
Number of Units, Granted | 0 | |
Number of Units, Vested | (1) | |
Number of Units, Forfeited | 0 | |
Number of Units, Unvested, Ending balance | 0 | |
Number of Units, Expected to vest thereafter | 0 | |
Weighted-Average Grant-Date Fair Value, Unvested, Beginning balance | $ 72.92 | |
Weighted-Average Grant-Date Fair Value, Vested | $ 72.92 | |
Share-based compensation expense | $ 0 | 100,000 |
Unrecognized compensation expenses | 0 | |
Fair value of restricted share units vested | $ 0 | $ 86,078 |
Sohu.com Inc. Shareholders' E63
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Narrative) (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Aug. 22, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ (2,344,000) | $ 7,229,000 | |||
Sogou [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | [1] | $ 4,279,000 | 4,337,000 | ||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Share Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares outstanding | 11,319,000 | 9,753,000 | |||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [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] | Class A Ordinary Shares [Member] | Share Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for issuance | 41,500,000 | ||||
Number of options granted | 39,700,127 | ||||
Number of options granted for which performance targets had been set | 36,499,249 | ||||
Number of shares outstanding | 11,318,791 | ||||
Share-based compensation expense | $ 4,200,000 | 300,000 | |||
Unrecognized compensation expense | $ 19,600,000 | ||||
Unrecognized compensation expense, weighted average period for recognition (in years) | 2 years 3 months 8 days | ||||
Total intrinsic value of share options exercised | $ 100,000 | $ 443 | |||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share 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 | 30,251,935 | ||||
Installments of share options granted | Four equal installments or two to four installments | ||||
Number of options granted for which performance targets had been set | 27,051,057 | ||||
Number of options vested and exercisable | 26,800,559 | ||||
Accumulated number of share options exercised | 25,180,458 | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share 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 | 7,250,000 | ||||
Number of options vested and exercisable | 0 | ||||
Accumulated number of share options exercised | 0 | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | Vesting upon Completion of Sogou's IPO and Expiration of All Underwriters' Lockup Periods, Part One [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 | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | Vesting upon Completion of Sogou's IPO and Expiration of All Underwriters' Lockup Periods, Part Two [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options granted | 50,000 | ||||
Sogou [Member] | Sogou 2010 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | Share Options [Member] | Vesting upon Service Period [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options granted | 2,198,192 | ||||
Installments of share options granted | Four equal installments or two to four installments | ||||
Number of options vested and exercisable | 0 | ||||
Accumulated number of share options exercised | 0 | ||||
Number of options granted, previously vesting upon service period and achievement of performance targets | 2,181,192 | ||||
[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 and search-related businesses, and compensation expense of $4.0 million recognized in the first quarter of 2017 in connection with Sogou's repurchase of Sogou Pre-IPO Class A Ordinary Shares from the former President and Chief Financial Officer of the Sohu Group, which is equal to the excess of the repurchase price over the fair value of the Sogou Pre-IPO Class A Ordinary Shares as of the repurchase date. |
Sohu.com Inc. Shareholders' E64
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Option Activity) (Details) - Sogou [Member] - Sogou 2010 Share Incentive Plan [Member] - Share Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)Years$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | shares | 9,753 | |
Number of Shares, Granted | shares | 1,696 | |
Number of Shares, Exercised | shares | (17) | |
Number of Shares, Forfeited or expired | shares | (113) | |
Number of Shares, Outstanding, Ending Balance | shares | 11,319 | |
Number of Shares, Vested, Ending balance, and expected to vest thereafter | shares | 10,952 | |
Number of Shares, Exercisable, Ending balance | shares | 1,620 | |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 0.462 | |
Weighted Average Exercise Price, Granted | 0.001 | |
Weighted Average Exercise Price, Exercised | 0.001 | |
Weighted Average Exercise Price, Forfeited or expired | 0.001 | |
Weighted Average Exercise Price, Outstanding, Ending balance | 0.398 | |
Weighted Average Exercise Price, Vested and expected to vest thereafter, Ending balance | 0.411 | |
Weighted Average Exercise Price, Exercisable, Ending balance | $ 0.001 | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Beginning balance | Years | 5.56 | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | Years | 5.81 | |
Weighted Average Remaining Contractual Life (Years), Vested, Ending balance, and expected to vest thereafter | Years | 5.70 | |
Weighted Average Remaining Contractual Life (Years), Exercisable, Ending balance | Years | 5.43 | |
Aggregate Intrinsic Value, Outstanding, Ending balance | $ | [1] | $ 88,876 |
Aggregate Intrinsic Value, Vested, Ending balance, and expected to vest thereafter | $ | [1] | 85,846 |
Aggregate Intrinsic Value, Exercisable, Ending balance | $ | [1] | $ 13,346 |
Closing stock price | $ 8.25 | |
[1] | The aggregate intrinsic values in the preceding table represent the difference between Sogou's closing price of $8.25 per Class A Ordinary Share on March 31, 2018 and the exercise prices of the share options. |
Sohu.com Inc. Shareholders' E65
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Option Assumptions) (Details) - Sogou [Member] - Sogou 2010 Share Incentive Plan [Member] - Share Options [Member] | 3 Months Ended |
Mar. 31, 2018$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average expected option life | 9 years |
Dividend yield | 0.00% |
Weighted average fair value of share options | $ 12.28 |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average risk-free interest rate | 2.61% |
Exercise multiple | 2 |
Expected forfeiture rate (post-vesting) | 0.00% |
Volatility rate | 39.00% |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average risk-free interest rate | 3.51% |
Exercise multiple | 3 |
Expected forfeiture rate (post-vesting) | 12.00% |
Volatility rate | 47.00% |
Sohu.com Inc. Shareholders' E66
Sohu.com Inc. Shareholders' Equity (Sogou 2010 Share Incentive Plan, Share Option Assumptions, Narrative) (Details) - Sogou [Member] - Sogou 2010 Share Incentive Plan [Member] - Share Options [Member] | 3 Months Ended |
Mar. 31, 2018$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated dividend yield | 0.00% |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise multiple | 2 |
Estimated forfeiture rate | 0.00% |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise multiple | 3 |
Estimated forfeiture rate | 12.00% |
Management [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise multiple | 3 |
Management [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated forfeiture rate | 0.00% |
Management [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated forfeiture rate | 1.00% |
Key Employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise multiple | 2 |
Estimated forfeiture rate | 12.00% |
Sohu.com Inc. Shareholders' E67
Sohu.com Inc. Shareholders' Equity (Sohu Management Sogou Share Option Arrangement, Narrative) (Details) - Sogou [Member] - Sohu Management Sogou Share Option Arrangement [Member] - USD ($) $ / shares in Units, $ in Millions | Apr. 14, 2011 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | Mar. 31, 2011 |
Share Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares outstanding | 9,000 | 9,000 | |||
Class A 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 | ||||
Class A Ordinary Shares [Member] | Share Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options granted | 8,305,000 | ||||
Number of options granted for which performance targets had been set | 8,305,000 | ||||
Number of shares outstanding | 9,000 | ||||
Class A Ordinary Shares [Member] | Share Options [Member] | Board of Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options granted for which performance targets had been set | 15,000 | ||||
Number of options vested and exercisable | 15,000 | ||||
Accumulated number of share options exercised | 6,000 | ||||
Class A Ordinary Shares [Member] | Share Options [Member] | Vesting upon Service Period and Achievement of Performance Targets [Member] | Management and Key Employees [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 | 8,290,000 | ||||
Class A Ordinary Shares [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fixed exercise price of ordinary share | $ 0.001 | ||||
Class A Ordinary Shares [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fixed exercise price of ordinary share | $ 0.625 |
Sohu.com Inc. Shareholders' E68
Sohu.com Inc. Shareholders' Equity (Sohu Management Sogou Share Option Arrangement, Share Option Activity) (Details) - Sogou [Member] - Sohu Management Sogou Share Option Arrangement [Member] - Share Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)Years$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | 9 | |
Number of Shares, Granted | 0 | |
Number of Shares, Exercised | 0 | |
Number of Shares, Forfeited or expired | 0 | |
Number of Shares, Outstanding, Ending Balance | 9 | |
Number of Shares, Vested, Ending balance | 9 | |
Number of Shares, Exercisable, Ending balance | 9 | |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / 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, Beginning balance | Years | 7.38 | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | Years | 7.14 | |
Weighted Average Remaining Contractual Life (Years), Vested, Ending balance | Years | 7.14 | |
Weighted Average Remaining Contractual Life (Years), Exercisable, Ending balance | Years | 7.14 | |
Aggregate Intrinsic Value, Outstanding, Ending balance | $ | [1] | $ 74 |
Aggregate Intrinsic Value, Vested, Ending balance | $ | [1] | 74 |
Aggregate Intrinsic Value, Exercisable, Ending balance | $ | [1] | $ 74 |
Closing stock price | $ / shares | $ 8.25 | |
[1] | The aggregate intrinsic value in the preceding table represents the difference between Sogou's closing price of $8.25 per Class A ordinary share on March 31, 2018 and the exercise prices of the share options. |
Sohu.com Inc. Shareholders' E69
Sohu.com Inc. Shareholders' Equity (Sogou 2017 Share Incentive Plan) (Details) - Sogou [Member] - Sogou 2017 Share Incentive Plan [Member] - Class A Ordinary Shares [Member] - Share Options [Member] | Oct. 31, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares for issuance | 28,000,000 |
Maximum term of share incentive award granted under share incentive plan | 10 years |
Number of options granted | 0 |
Sohu.com Inc. Shareholders' E70
Sohu.com Inc. Shareholders' Equity (Sogou Share Repurchase Transaction) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incremental share-based compensation expense | $ (2,344) | $ 7,229 | |
Sogou [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incremental share-based compensation expense | [1] | $ 4,279 | $ 4,337 |
Sogou [Member] | Pre-IPO [Member] | Class A Ordinary Shares [Member] | Former President and CFO of Sohu Group [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate repurchased shares | 720,000 | ||
Aggregate cost of repurchased shares | $ 7,200 | ||
Incremental share-based compensation expense | $ 4,000 | ||
[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 and search-related businesses, and compensation expense of $4.0 million recognized in the first quarter of 2017 in connection with Sogou's repurchase of Sogou Pre-IPO Class A Ordinary Shares from the former President and Chief Financial Officer of the Sohu Group, which is equal to the excess of the repurchase price over the fair value of the Sogou Pre-IPO Class A Ordinary Shares as of the repurchase date. |
Sohu.com Inc. Shareholders' E71
Sohu.com Inc. Shareholders' Equity (Sogou Inc. Share-based Awards, Option Modification) (Details) - Sogou [Member] - Class A Ordinary Shares [Member] - Share Options [Member] - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Jun. 30, 2013 | Mar. 31, 2013 | |
Sogou 2010 Share Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incremental fair value | $ 0 | $ 0 | |
Accumulated number of share options early exercised remained unvested | 10,327,500 | ||
Number of shares under changed vesting conditions | 2,181,192 | ||
Number of shares not deemed granted under previous vesting conditions | 1,601,427 | ||
Number of shares constituting option modification under changed vesting conditions | 579,765 | ||
Sohu Management Sogou Share Option Arrangement [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incremental fair value | $ 0 |
Sohu.com Inc. Shareholders' E72
Sohu.com Inc. Shareholders' Equity (Tencent Share-based Awards Granted to Employees Who Transferred to Sogou with Soso Search-related Businesses) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ (2,344,000) | $ 7,229,000 | |
Sogou [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | [1] | 4,279,000 | 4,337,000 |
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 | 32,694 | $ 298 | |
Unrecognized compensation expenses | $ 30,246 | ||
Unrecognized compensation expenses, weighted average period for recognition (in years) | 3 months 4 days | ||
[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 and search-related businesses, and compensation expense of $4.0 million recognized in the first quarter of 2017 in connection with Sogou's repurchase of Sogou Pre-IPO Class A Ordinary Shares from the former President and Chief Financial Officer of the Sohu Group, which is equal to the excess of the repurchase price over the fair value of the Sogou Pre-IPO Class A Ordinary Shares as of the repurchase date. |
Sohu.com Inc. Shareholders' E73
Sohu.com Inc. Shareholders' Equity (Changyou's 2008 Share Incentive Plan) (Details) | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2009shares | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2008shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ (2,344,000) | $ 7,229,000 | ||
Changyou [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ (2,425,000) | $ 5,533,000 | ||
Changyou [Member] | Changyou's 2008 Share Incentive Plan [Member] | Ordinary Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for future issuance | shares | 2,000,000 | |||
Shares reserved for future issuance as result of stock split | shares | 20,000,000 | |||
Stock split, conversion ratio | 10 | |||
Award vesting period | 4 years | |||
Maximum term of share rights granted under share incentive plan | 10 years | |||
Plan expiration date | Aug. 31, 2018 | |||
Share-based compensation expense | $ 0 |
Sohu.com Inc. Shareholders' E74
Sohu.com Inc. Shareholders' Equity (Changyou 2014 Share Incentive Plan, Narrative) (Details) - USD ($) | 3 Months Ended | ||||||
Mar. 31, 2018 | Mar. 31, 2017 | 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 | $ (2,344,000) | $ 7,229,000 | |||||
Changyou [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ (2,425,000) | 5,533,000 | |||||
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 | |||||
Maximum term of share rights granted under share incentive plan | 10 years | ||||||
Plan expiration date | Jun. 30, 2024 | ||||||
Shares available for grant | 2,988,000 | ||||||
Number of shares or units granted | 1,999,000 | 100,000 | 1,998,000 | ||||
Exercise prices of option granted | $ 0.01 | $ 0.01 | |||||
Installments of share options granted | Four equal installments | ||||||
Award vesting period | 4 years | ||||||
Number of share options vested | 1,999,000 | ||||||
Cumulative share-based compensation expense | $ 28,600,000 | ||||||
Share-based compensation expense | (2,400,000) | 5,500,000 | |||||
Total fair values of share options vested | 0 | 0 | |||||
Total intrinsic value of share options exercised | $ 5,600,000 | $ 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 | ||||||
Number of Class A restricted share units converted to options | 2,400,000 | ||||||
Exercise prices of option granted | $ 0.01 |
Sohu.com Inc. Shareholders' E75
Sohu.com Inc. Shareholders' Equity (Changyou 2014 Share Incentive Plan, Share Option Activity) (Details) - Changyou [Member] - Changyou 2014 Share Incentive Plan [Member] - Share Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)Years$ / sharesshares | ||
Class A Ordinary Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | shares | 947 | |
Number of Shares, Granted | shares | 0 | |
Number of Shares, Exercised | shares | (400) | |
Number of Shares, Forfeited or expired | shares | 0 | |
Number of Shares, Outstanding, Ending Balance | shares | 547 | |
Number of Shares, Vested, Ending balance | shares | 547 | |
Number of Shares, Exercisable, Ending balance | shares | 547 | |
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 | |
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 | 7.01 | |
Weighted Average Remaining Contractual Life (Years), Outstanding, Ending balance | Years | 6.85 | |
Aggregate Intrinsic Value, Outstanding, Beginning balance | $ | [1] | $ 17,240 |
Aggregate Intrinsic Value, Outstanding, Ending balance | $ | [1] | 7,622 |
Aggregate Intrinsic Value, Vested, Ending balance | $ | [1] | $ 7,622 |
Closing price | $ 13.95 | |
ADS [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Closing price | $ 27.89 | |
[1] | The aggregated intrinsic value in the preceding table represents the difference between Changyou's closing price of $27.89 per ADS, or $13.95 per Class A ordinary share, on March 31, 2018 and the nominal exercise price of share option. |
Sohu.com Inc. Shareholders' E76
Sohu.com Inc. Shareholders' Equity (Sohu Video Share-based Awards, Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 04, 2012 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ (2,344) | $ 7,229 | ||
Sohu Video [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | [1] | $ (149) | (198) | |
Sohu Video [Member] | Video 2011 Share Incentive Plan [Member] | Ordinary Shares [Member] | Share Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for future issuance | 25,000,000 | |||
Maximum term of share rights granted under share incentive plan | 10 years | |||
Plan expiration date | Jan. 3, 2021 | |||
Number of options granted | 16,368,200 | |||
Installments of share options granted | Four equal installments | |||
Number of options vested | 4,972,800 | |||
Share-based compensation expense | $ (100) | $ (200) | ||
[1] | The negative amount resulted from re-measured compensation expense based on the then-current fair value of the awards on the reporting date. |
Sohu.com Inc. Shareholders' E77
Sohu.com Inc. Shareholders' Equity (Sohu Video Share-based Awards, Share Option Assumptions) (Details) - Sohu Video [Member] - Video 2011 Share Incentive Plan [Member] - Share Options [Member] | 3 Months Ended |
Mar. 31, 2018$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average risk-free interest rate | 3.19% |
Exercise multiple | 2.8 |
Expected forfeiture rate (post-vesting) | 14.00% |
Weighted average expected option life | 3 years 9 months 18 days |
Volatility rate | 44.20% |
Dividend yield | 0.00% |
Fair value | $ 0.61 |
Noncontrolling Interest (Narrat
Noncontrolling Interest (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest in consolidated balance sheets | $ 1,098,256 | $ 1,066,603 | |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | 5,617 | $ 17,895 | |
Sogou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest in consolidated balance sheets | $ 648,867 | $ 623,785 | |
Percentage of noncontrolling interest recognized in consolidated balance sheets | 66.00% | 66.00% | |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ 10,135 | 8,398 | |
Changyou [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest in consolidated balance sheets | $ 449,389 | $ 442,818 | |
Percentage of noncontrolling interest recognized in consolidated balance sheets | 32.00% | 32.00% | |
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ (4,518) | $ 9,508 | |
Percentage of net income /(loss) attributable to noncontrolling interest recognized in consolidated statements of comprehensive income | 32.00% | 31.00% |
Noncontrolling Interest (Noncon
Noncontrolling Interest (Noncontrolling Interest in Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest in consolidated balance sheets | $ 1,098,256 | $ 1,066,603 |
Sogou [Member] | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest in consolidated balance sheets | 648,867 | 623,785 |
Changyou [Member] | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest in consolidated balance sheets | $ 449,389 | $ 442,818 |
Noncontrolling Interest (Nonc80
Noncontrolling Interest (Noncontrolling Interest in Consolidated Statements of Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Noncontrolling Interest [Line Items] | ||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ 5,617 | $ 17,895 |
Sogou [Member] | ||
Noncontrolling Interest [Line Items] | ||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | 10,135 | 8,398 |
Changyou [Member] | ||
Noncontrolling Interest [Line Items] | ||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | (4,518) | 9,508 |
Other [Member] | ||
Noncontrolling Interest [Line Items] | ||
Net income /(loss) attributable to noncontrolling interest in consolidated statements of comprehensive income | $ 0 | $ (11) |
Net Income _(Loss) per Share (N
Net Income /(Loss) per Share (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
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 | 347,000 | 303,000 |
Net Income _(Loss) per Share (C
Net Income /(Loss) per Share (Calculation of Sohu Group's Basic and Diluted Net Income /(Loss) per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | ||
Net loss attributable to Sohu.com Inc., basic | $ (92,818) | $ (68,248) |
Effect of dilutive securities: | ||
Net loss attributable to Sohu.com Inc., diluted | $ (92,925) | $ (68,664) |
Denominator: | ||
Weighted average basic common shares outstanding | 38,904 | 38,811 |
Effect of dilutive securities: | ||
Share options and restricted share units | 0 | 0 |
Weighted average diluted common shares outstanding | 38,904 | 38,811 |
Basic net loss per share attributable to Sohu.com Inc. | $ (2.39) | $ (1.76) |
Diluted net loss per share attributable to Sohu.com Inc. | $ (2.39) | $ (1.77) |
Sogou [Member] | ||
Effect of dilutive securities: | ||
Incremental dilution | $ (107) | $ 0 |
Changyou [Member] | ||
Effect of dilutive securities: | ||
Incremental dilution | $ 0 | $ (416) |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] $ / shares in Units, ¥ in Millions, $ in Millions | Apr. 11, 2018USD ($) | Apr. 05, 2018USD ($)$ / shares | Apr. 11, 2018CNY (¥) |
Sohu.com Inc. [Member] | Credit Facility Agreement with China Merchants Bank Co., Ltd. [Member] | CMB [Member] | |||
Subsequent Event [Line Items] | |||
Loans may borrow from bank | $ 111.3 | ¥ 700 | |
First Drawdown | $ 63.6 | ¥ 400 | |
Interest rate, per year | 6.00% | 6.00% | |
Maturity date of outstanding principal of the First Drawdown | Apr. 10, 2019 | ||
Changyou [Member] | |||
Subsequent Event [Line Items] | |||
Amount of special cash dividend | $ | $ 500 | ||
Changyou [Member] | Sohu.com Inc. [Member] | |||
Subsequent Event [Line Items] | |||
Dividend payable | $ | $ 340 | ||
Class A ordinary shares [Member] | Changyou [Member] | |||
Subsequent Event [Line Items] | |||
Special cash dividends declared, per share | $ 4.70 | ||
Class B ordinary shares [Member] | Changyou [Member] | |||
Subsequent Event [Line Items] | |||
Special cash dividends declared, per share | 4.70 | ||
ADS [Member] | Changyou [Member] | |||
Subsequent Event [Line Items] | |||
Special cash dividends declared, per share | $ 9.40 |