Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ZNGA | ||
Entity Registrant Name | ZYNGA INC | ||
Entity Central Index Key | 1,439,404 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 925,645,927 | ||
Entity Public Float | $ 3.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 544,990 | $ 372,870 |
Short-term investments | 36,232 | 308,506 |
Accounts receivable, net of allowance of $0 at December 31, 2018 and December 31, 2017 | 91,630 | 103,677 |
Restricted cash | 35,006 | 12,807 |
Prepaid expenses | 26,914 | 24,253 |
Other current assets | 12,505 | 8,837 |
Total current assets | 747,277 | 830,950 |
Goodwill | 934,187 | 730,464 |
Intangible assets, net | 118,600 | 64,258 |
Property and equipment, net | 266,557 | 266,589 |
Restricted cash | 20,000 | |
Prepaid expenses | 30,774 | 23,821 |
Other non-current assets | 49,308 | 43,251 |
Total assets | 2,146,703 | 1,979,333 |
Current liabilities: | ||
Accounts payable | 26,811 | 18,938 |
Income tax payable | 4,895 | 6,677 |
Deferred revenue | 191,299 | 134,007 |
Debt | 100,000 | |
Other current liabilities | 156,829 | 123,089 |
Total current liabilities | 479,834 | 282,711 |
Deferred revenue | 1,586 | 568 |
Deferred tax liabilities, net | 16,087 | 5,902 |
Other non-current liabilities | 52,586 | 48,912 |
Total liabilities | 550,093 | 338,093 |
Stockholders’ equity: | ||
Common stock, $0.00000625 par value, and additional paid-in capital - authorized shares: 2,020,517; shares outstanding: 861,111 shares (Class A) as of December 31, 2018 and 870,660 (Class A, 783,376, Class B, 66,767 and Class C, 20,517) as of December 31, 2017 | 3,504,713 | 3,426,505 |
Accumulated other comprehensive income (loss) | (118,439) | (93,497) |
Accumulated deficit | (1,789,664) | (1,691,768) |
Total stockholders’ equity | 1,596,610 | 1,641,240 |
Total liabilities and stockholders’ equity | $ 2,146,703 | $ 1,979,333 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, allowance | $ 0 | $ 0 |
Common stock, par value | $ 0.00000625 | $ 0.00000625 |
Common stock, shares authorized | 2,020,517,000 | 2,020,517,000 |
Common stock, shares outstanding | 861,111,000 | 870,660,000 |
Common Class A [Member] | ||
Common stock, shares outstanding | 861,111,000 | 783,376,000 |
Common Class B [Member] | ||
Common stock, shares outstanding | 66,767,000 | |
Common Class C [Member] | ||
Common stock, shares outstanding | 20,517,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenue: | ||||
Total revenue | $ 907,208 | $ 861,390 | $ 741,420 | |
Costs and expenses: | ||||
Cost of revenue | 304,658 | 258,971 | 238,546 | |
Research and development | 270,323 | 256,012 | 320,300 | |
Sales and marketing | 226,524 | 212,030 | 183,637 | |
General and administrative | 98,941 | 108,653 | 92,509 | |
Impairment of intangible assets | [1] | 20,677 | ||
Total costs and expenses | 900,446 | 835,666 | 855,669 | |
Income (loss) from operations | 6,762 | 25,724 | (114,249) | |
Interest income | 6,549 | 5,309 | 3,057 | |
Other income (expense), net | 13,152 | 6,550 | 6,461 | |
Income (loss) before income taxes | 26,463 | 37,583 | (104,731) | |
Provision for (benefit from) income taxes | 11,006 | 10,944 | 3,442 | |
Net income (loss) | $ 15,457 | $ 26,639 | $ (108,173) | |
Net income (loss) per share attributable to common stockholders: | ||||
Basic | $ 0.02 | $ 0.03 | $ (0.12) | |
Diluted | $ 0.02 | $ 0.03 | $ (0.12) | |
Weighted average common shares used to compute net income (loss) per share attributable to common stockholders: | ||||
Basic | 862,460 | 869,067 | 878,827 | |
Diluted | 889,584 | 897,165 | 878,827 | |
Online Game [Member] | ||||
Revenue: | ||||
Total revenue | $ 670,877 | $ 665,593 | $ 547,291 | |
Advertising and Other [Member] | ||||
Revenue: | ||||
Total revenue | $ 236,331 | $ 195,797 | $ 194,129 | |
[1] | Prior period amounts retrospectively adjusted to reflect the adoption of ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”. Refer to Note 1 – “Overview and Summary of Significant Accounting Policies” in the notes to the consolidated financial statements for further discussion on the adoption. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Partners Capital [Abstract] | |||
Net income (loss) | $ 15,457 | $ 26,639 | $ (108,173) |
Other comprehensive income (loss): | |||
Change in foreign currency translation adjustment | (25,122) | 35,352 | (76,410) |
Net change in unrealized gains (losses) on available-for-sale marketable debt securities, net of tax | 180 | (155) | 104 |
Other comprehensive income (loss), net of tax: | (24,942) | 35,197 | (76,306) |
Comprehensive income (loss): | $ (9,485) | $ 61,836 | $ (184,479) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Class A,B, and C Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Beginning balance, Value at Dec. 31, 2015 | $ 1,786,901 | $ 6 | $ 3,234,545 | $ (98,942) | $ (52,388) | $ (1,296,320) |
Beginning balance, Shares at Dec. 31, 2015 | 903,617,000 | |||||
Exercise of stock options and ESPP | 5,921 | 5,921 | ||||
Exercise of stock options and ESPP, Shares | 6,989,000 | |||||
Vesting of ZSUs, net of tax withholdings | (3,423) | (2,582) | (841) | |||
Vesting of ZSUs, net of tax withholdings, Shares | 30,794,000 | |||||
Stock-based compensation expense | 111,824 | 111,824 | ||||
Repurchases of common stock | (136,080) | (136,080) | ||||
Repurchases of common stock, Shares | (54,550,000) | |||||
Retirements of treasury stock | 235,863 | (235,863) | ||||
Net income (loss) | (108,173) | (108,173) | ||||
Other comprehensive income (loss) | (76,306) | (76,306) | ||||
Ending balance, Value at Dec. 31, 2016 | 1,580,664 | $ 6 | 3,349,708 | (128,694) | (1,640,356) | |
Ending balance, Shares at Dec. 31, 2016 | 886,850,000 | |||||
Exercise of stock options and ESPP | 8,769 | 8,769 | ||||
Exercise of stock options and ESPP, Shares | 5,365,000 | |||||
Vesting of ZSUs, net of tax withholdings | (21,719) | (427) | (21,292) | |||
Vesting of ZSUs, net of tax withholdings, Shares | 14,768,000 | |||||
Stock-based compensation expense | 64,515 | 64,515 | ||||
Repurchases of common stock | (101,036) | $ (1) | (101,035) | |||
Repurchases of common stock, Shares | (36,323,000) | |||||
Retirements of treasury stock | 122,327 | (122,327) | ||||
Adoption of ASU | 2016-09 | 48,211 | 3,935 | 44,276 | |||
Net income (loss) | 26,639 | 26,639 | ||||
Other comprehensive income (loss) | 35,197 | 35,197 | ||||
Ending balance, Value at Dec. 31, 2017 | 1,641,240 | $ 5 | 3,426,500 | (93,497) | (1,691,768) | |
Ending balance, Shares at Dec. 31, 2017 | 870,660,000 | |||||
Exercise of stock options and ESPP | 9,969 | 9,969 | ||||
Exercise of stock options and ESPP, Shares | 5,090,000 | |||||
Vesting of ZSUs, net of tax withholdings | (25,807) | (25,807) | ||||
Vesting of ZSUs, net of tax withholdings, Shares | 10,618,000 | |||||
Stock-based compensation expense | 68,239 | 68,239 | ||||
Repurchases of common stock | (91,570) | (91,570) | ||||
Repurchases of common stock, Shares | (25,257,000) | |||||
Retirements of treasury stock | $ 117,377 | (117,377) | ||||
Adoption of ASU | 2014-09 | 4,024 | 4,024 | ||||
Net income (loss) | 15,457 | 15,457 | ||||
Other comprehensive income (loss) | (24,942) | (24,942) | ||||
Ending balance, Value at Dec. 31, 2018 | $ 1,596,610 | $ 5 | $ 3,504,708 | $ (118,439) | $ (1,789,664) | |
Ending balance, Shares at Dec. 31, 2018 | 861,111,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Cash flows from operating activities: | ||||||
Net income (loss) | $ 15,457 | $ 26,639 | [1] | $ (108,173) | [1] | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
Depreciation and amortization | 42,057 | 30,294 | [1] | 41,770 | [1] | |
Stock-based compensation expense | 68,239 | 64,515 | [1] | 107,461 | [1] | |
(Gain) loss from foreign currency, sales of investments, assets and other, net | 263 | (238) | [1] | 26 | [1] | |
(Accretion) and amortization on marketable debt securities, net | (2,730) | (636) | [1] | 323 | [1] | |
Noncash consideration received | (1,494) | |||||
Change in deferred income taxes and other | (3,366) | 3,780 | [1] | (1,988) | [1] | |
Impairment of intangible assets | [1] | 20,677 | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable, net | 22,625 | (26,417) | [1] | 3,834 | [1] | |
Other assets | (18,417) | (8,124) | [1] | (2,501) | [1] | |
Accounts payable | (810) | (3,666) | [1] | (3,613) | [1] | |
Deferred revenue | 62,338 | (7,581) | [1] | 13,113 | [1] | |
Income tax payable | (2,116) | 4,788 | [1] | 1,889 | [1] | |
Other liabilities | (13,806) | 11,021 | [1] | (12,788) | [1] | |
Net cash provided by (used in) operating activities | 168,240 | 94,375 | [1] | 60,030 | [1] | |
Cash flows from investing activities: | ||||||
Purchases of short-term investments | (333,832) | (348,594) | [1] | |||
Maturities of short-term investments | 519,800 | 40,000 | [1] | 244,837 | [1] | |
Sales of short-term investments | 89,168 | |||||
Acquisition of property and equipment | (11,469) | (9,971) | [1] | (10,313) | [1] | |
Proceeds from sale of property and equipment | 33 | 273 | [1] | 3,209 | [1] | |
Business acquisitions, net of cash acquired and restricted cash held in escrow | (222,440) | (101,201) | [1] | (29,705) | [1] | |
Release of restricted cash escrow from business combinations | (22,800) | (3,625) | [1] | (1,000) | [1] | |
Other investing activities, net | 521 | (8,163) | [1] | |||
Net cash provided by (used in) investing activities | 18,981 | (431,281) | [1] | 207,028 | [1] | |
Cash flows from financing activities: | ||||||
Proceeds from issuance of debt, net | 99,100 | |||||
Taxes paid related to net share settlement of stockholders' equity awards | (25,807) | (21,719) | [1] | (3,422) | [1] | |
Repurchases of common stock | (91,570) | (105,013) | [1] | (142,596) | [1] | |
Proceeds from issuance of common stock | 9,969 | 8,769 | [1] | 5,921 | [1] | |
Acquisition-related contingent consideration payment | [1] | (5,115) | (10,230) | |||
Contingent consideration restricted cash held in escrow | [1] | 5,115 | ||||
Net cash provided by (used in) financing activities | (8,308) | (123,078) | [1] | (145,212) | [1] | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (4,594) | 3,945 | [1] | (3,542) | [1] | |
Net change in cash, cash equivalents and restricted cash | 174,319 | (456,039) | [1] | 118,304 | [1] | |
Cash, cash equivalents and restricted cash, beginning of period | [1] | 405,677 | 861,716 | 743,412 | ||
Cash, cash equivalents and restricted cash, end of period | 579,996 | 405,677 | [1] | 861,716 | [1] | |
Supplemental cash flow information: | ||||||
Income taxes paid | 16,111 | $ 4,024 | [1] | $ 1,033 | [1] | |
Software acquired as noncash consideration | $ 1,494 | |||||
[1] | Prior period amounts retrospectively adjusted to reflect the adoption of ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”. Refer to Note 1 – “Overview and Summary of Significant Accounting Policies” in the notes to the consolidated financial statements for further discussion on the adoption. |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Overview and Summary of Significant Accounting Policies | 1. Overview and Summary of Significant Accounting Policies Organization and Description of Business Zynga Inc. (“Zynga,” or “we” or the “Company”) is a leading provider of social game services. We develop, market and operate social games as live services played on mobile platforms such as iOS and Android and social networking sites such as Facebook. Generally, all of our games are free to play, and we generate substantially all of our revenue through the sale of in-game virtual items and advertising services. Our operations are headquartered in San Francisco, California, and we have several operating locations in the U.S. as well as various international office locations in North America, Asia and Europe. We completed our initial public offering in December 2011 and our Class A common stock is listed on the NASDAQ Global Select Market under the symbol “ZNGA.” Basis of Presentation and Consolidation The accompanying consolidated financial statements are presented in accordance with United States generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the operations of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in the consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and notes thereto. Significant estimates and assumptions reflected in the financial statements include, but are not limited to, the estimated average playing period of payers that we use for revenue recognition, useful lives of property and equipment and intangible assets, accrued liabilities, income taxes, the fair value of assets and liabilities acquired through business combinations, contingent consideration obligations, stock-based compensation expense and the evaluation of recoverability of goodwill, intangible assets and long-lived assets. Actual results could differ materially from those estimates. During the year ended December 31, 2018, we recognized $0.9 million of online game revenue and income from operations from games that have been discontinued as there is no further performance obligation, which did not impact our reported earnings per share. Further, there were no changes in our estimated average playing period of payers that required adjusting the recognition period of deferred revenue generated in prior periods for the year ended December 31, 2018. During the year ended December 31, 2017, we recognized $1.3 million of online game revenue and income from operations from changes in our estimated average playing period of payers, which was the result of adjusting the remaining recognition period of deferred revenue generated in prior periods at the time of a change in estimate. This change in estimate did not impact our reported earnings per share. Further, there were no discontinued games that required adjusting the recognition period of deferred revenue generated in prior periods for the year ended December 31, 2017. During the year ended December 31, 2016, changes in our estimated average playing period of payers resulted in a decrease in online game revenue and income from operations of $0.1 million. Further, we recognized $4.0 million of online game revenue and income from operations from games that had been discontinued. These changes in estimates did not impact our reported earnings per share. Segments We have one operating and reportable segment, which is at the consolidated company level. The Chief Operating Decision Maker (“CODM”), our Chief Executive Officer, manages our operations on a consolidated basis for purposes of assessing performance and allocating resources. Revenue Recognition The revenue recognition accounting policy described below relates to revenue transactions from January 1, 2018 and onward, which are accounted for in accordance with Accounting Standards Codification Topic 606 – Revenue from Contracts with Customers We primarily derive revenue from the sale of virtual items associated with our online games and the sale of advertising. Online Game. We operate our games as live services that allow players to play for free. Within these games however, players can purchase virtual currency to obtain virtual goods or virtual goods directly (together, defined as “virtual items”) to enhance their game-playing experience. Our identified performance obligation is to display the virtual items within the game over the estimated life of the paying player or until it is consumed in game play based upon the nature of the virtual item. Payment is required at time of purchase and the purchase price is a fixed amount. Players can purchase our virtual items through various widely accepted payment methods offered in the games, including Apple iTunes accounts, Google Play accounts, Facebook local currency payments, PayPal and credit cards. Payments from players for virtual items are non-refundable and relate to non-cancellable contracts that specify our obligations. Such payments are initially recorded to deferred revenue. For revenue earned through mobile platforms, the transaction price is equal to the gross amount we request to be charged to our player because we are the principal in the transaction. The related platform and payment processing fees are recorded as cost of revenue in the period incurred. For revenue earned on our web based games through Facebook, our players utilize Facebook’s local currency-based payments program to purchase virtual items in our games. For all payment transactions on the Facebook platform, Facebook remits to us 70% of the price we request to be charged to the player for each transaction, which represents the transaction price. Despite being the principal in the transaction, we recognize revenue net of the amounts retained by Facebook for platform and payment processing fees because Facebook may choose to alter our requested price, for example by offering a discount or other incentives to players playing on their platform, and we do not receive information from Facebook indicating the amount of such discounts or incentives or the actual amount paid by our players. Accordingly, we are unable to determine the gross amount paid by our players on the Facebook platform. The satisfaction of our performance obligation is dependent on the nature of the virtual item purchased and as a result, we categorize our virtual items as either consumable or durable. • Consumable virtual items represent items that can be consumed by a specific player action. Common characteristics of consumable virtual items may include items that are no longer displayed on the player’s game board after a short period of time, do not provide the player any continuing benefit following consumption, or often times enable a player to perform an in-game action immediately (e.g. chips in Zynga Poker • Durable virtual items represent items that are accessible to the player over an extended period of time (e.g. animals in Farmville 2 • If we do not have the ability to differentiate between revenue attributable to consumable virtual items versus durable virtual items for a specific game, we recognize revenue ratably over the estimated average playing period of payers for the applicable game. Historically, we have had sufficient data to separately account for consumable and durable virtual items for substantially all of our web games. However, for our standalone mobile games, we do not have the requisite data to separately account for consumable and durable virtual items and therefore recognize mobile revenue ratably over the estimated average playing period of payers. We expect that in future periods, there will be changes in the mix of consumable and durable virtual items offered and sold, reduced virtual item sales in some existing games, changes in estimates of the average playing period of payers and/or changes in our ability to make such estimates. When such changes occur, and in particular if more of our revenue in any period is derived from durable virtual items or the estimated average playing period of payers increases on average, the amount of revenue that we recognize in a current or future period may be reduced, perhaps significantly. Conversely, if the estimated average playing period of payers decreases on average, the amount of revenue that we recognize in a current or future period may be accelerated, perhaps significantly. On a quarterly basis, we determine the estimated average playing period of payers by game beginning at the time of a payer’s first purchase in the respective game and ending on a date when that paying player is deemed to be no longer playing. To determine when paying players are no longer playing a given game, we analyze monthly cohorts of payers who made their first in-game payment between six and 18 months prior to the beginning of each quarter and determine whether each payer within the cohort is an active or inactive player as of the date of our analysis. To determine which payers are inactive, we analyze the dates that each payer last logged into that game. We determine a payer to be inactive once they have reached a period of inactivity for which it is probable that they will not return to a specific game. For the payers deemed inactive as of our analysis date, we analyze the dates they last logged into that game to determine the rate at which inactive payers stopped playing. Based on these dates, we then project a date at which all payers for each monthly cohort are expected to cease playing our games. We then average the time periods from first purchase date and the date the last payer is expected to cease playing the game for each of the monthly cohorts to determine the total playing period of payers for that game. To determine the estimated average playing period of payers, we then divide this total period by two. The use of this “average” approach is supported by our observations that payers typically become inactive at a relatively consistent rate for our games. If future data indicates payers do not become inactive at a relatively consistent rate, we will modify our calculations accordingly. When a new game is launched and only a limited period of payer data is available for our analysis, then we also consider other factors to determine the estimated average playing period of payers, such as the estimated average playing period of payers for other recently launched games with similar characteristics. Advertising. We have contractual relationships with advertising networks, agencies, advertising brokers and directly with advertisers for advertisements in our games. For all advertising arrangements, we are the principal and our performance obligation is to provide the inventory for advertisements to be displayed in our games. For contracts made directly with advertisers, we are also obligated to serve the advertisements in our games. However, for those direct advertising arrangements, providing the advertising inventory and serving the advertisement is considered a single performance obligation, as the advertiser cannot benefit from the advertising space without its advertisements being displayed. The pricing and terms for all our advertising arrangements are governed by either a master contract or insertion order and generally stipulate payment terms as a specific number of days subsequent to the end of the month, generally ranging from 30 to 60 days. The transaction price in advertising arrangements is generally the product of the number of advertising units delivered (e.g., impressions, offers completed, videos viewed, etc.) and the contractually agreed upon price per advertising unit. Further, for advertising transactions not placed directly with the advertiser, the contractually agreed upon price per advertising unit is generally based on our revenue share stated in the contract. The number of advertising units delivered is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period. For a limited number of advertising network arrangements, the transaction price is determined based on a volume-tiered pricing structure, whereby the price per advertising unit in a given month is determined by the number of impressions delivered in that month. However, the number of impressions delivered is resolved at the end of each month, therefore, eliminating any uncertainty with respect to the price per advertising unit for each reporting period. For in-game display ads, in-game offers, engagement advertisements and other advertisements, our performance obligation is satisfied over the life of contract (i.e., over time), with revenue being recognized as advertising units are delivered. For in-game sponsorships with branded virtual items, revenue is initially recorded to deferred revenue and then recognized ratably over the estimated life of the branded virtual item, similar to online game revenue, or over the term of the advertising arrangement, depending on the nature of the agreement. Arrangements with Multiple Performance Obligations. For arrangements with multiple performance obligations, we allocate the transaction price to each performance obligation in an amount that depicts the amount of consideration to which we expect to be entitled in exchange for satisfying each performance obligation, which is based on the standalone selling price. The standalone selling price represents the observable price which we would sell the advertising placement separately in a similar circumstance, to a similar customer. Taxes Collected from Customers. We present taxes collected from customers and remitted to governmental authorities on a net basis within our consolidated statement of operations. The revenue recognition accounting policy described below relates to revenue transactions prior to January 1, 2018, which are accounted for in accordance with Accounting Standards Codification Topic 605 – Revenue Recognition. We primarily derive revenue from the sale of virtual items associated with our online games and the sale of advertising. Online Game. We operate our games as live services that allow players to play for free. Within these games, however, players can purchase virtual currency to obtain virtual goods or virtual goods directly (together, defined as “virtual items”) to enhance their game-playing experience. Players can purchase our virtual items through various widely accepted payment methods offered in the games, including Apple iTunes accounts, Google Play accounts, Facebook local currency payments, PayPal and credit cards. Advance payments from customers for virtual items that are non-refundable and relate to non-cancellable contracts that specify our obligations are recorded to deferred revenue. All other advance payments that do not meet these criteria are recorded as customer deposits. For revenue earned through mobile platforms, we recognize online game revenue based on the gross amount paid by the player because we are the principal in the transaction. The related platform and payment processing fees are recorded as cost of revenue in the period incurred. For revenue earned on our web based games through Facebook, our players utilize Facebook’s local currency-based payments program to purchase virtual items in our games. For all payment transactions on the Facebook platform, Facebook remits to us 70% of the price we request to be charged to the player for each transaction. We recognize revenue net of the amounts retained by Facebook because Facebook may choose to alter our recommended price, for example by offering a discount or other incentives to players playing on their platform. Additionally, we do not receive information from Facebook indicating the amount of such discounts or incentives or the actual amount paid by our players. Accordingly, we are unable to determine the gross amount paid by our players on the Facebook platform. We recognize revenue when all of the following conditions are satisfied: there is persuasive evidence of an arrangement; the service has been provided to the player; the collection of our fees is reasonably assured; and the amount of fees to be paid by the player is fixed or determinable. For purposes of determining when the service has been provided to the player, we have determined that an implied obligation exists to the paying player to continue displaying the purchased virtual items within the online game over their estimated life or until they are consumed. Accordingly, we categorize our virtual items as either consumable or durable. Consumable virtual items represent items that can be consumed by a specific player action. Common characteristics of consumable virtual items may include items that are no longer displayed on the player’s game board after a short period of time, do not provide the player any continuing benefit following consumption, or often times enable a player to perform an in-game action immediately. For the sale of consumable virtual items, we recognize revenue as the items are consumed, which approximates one month. Durable virtual items represent items that are accessible to the player over an extended period of time. We recognize revenue from the sale of durable virtual items ratably over the estimated average playing period of payers for the applicable game, which represents our best estimate of the average life of the durable virtual item. If we do not have the ability to differentiate between revenue attributable to consumable virtual items from durable virtual items for a specific game, we recognize revenue ratably over the estimated average playing period of payers for the applicable game. We have had sufficient data to separately account for consumable and durable virtual items for substantially all of our web games. However, for our standalone mobile games, we do not have the requisite data to separately account for consumable and durable virtual items and therefore recognize revenue ratably over the estimated average playing period of payers. We expect that in future periods there will be changes in the mix of durable and consumable virtual items offered and sold, reduced virtual item sales in some existing games, changes in estimates of the average playing period of payers and/or changes in our ability to make such estimates. When such changes occur, and in particular if more of our revenue in any period is derived from durable virtual items or the estimated average playing period of payers increases on average, the amount of revenue that we recognize in a current or future period may be reduced, perhaps significantly. Conversely, if the estimated average playing period of payers decreases on average, the amount of revenue that we recognize in a current or future period may be accelerated, perhaps significantly. On a quarterly basis, we determine the estimated average playing period of payers by game beginning at the time of a payer’s first purchase in the respective game and ending on a date when that paying player is deemed to be no longer playing. To determine when paying players are no longer playing a given game, we analyze monthly cohorts of payers who made their first in-game payment between six and 18 months prior to the beginning of each quarter and determine whether each payer within the cohort is an active or inactive player as of the date of our analysis. To determine which payers are inactive, we analyze the dates that each payer last logged into that game. We determine a payer to be inactive once they have reached a period of inactivity for which it is probable that they will not return to a specific game. For the payers deemed inactive as of our analysis date, we analyze the dates they last logged into that game to determine the rate at which inactive payers stopped playing. Based on these dates, we then project a date at which all payers for each monthly cohort are expected to cease playing our games. We then average the time periods from first purchase date and the date the last payer is expected to cease playing the game for each of the monthly cohorts to determine the total playing period of payers for that game. To determine the estimated average playing period of payers, we then divide this total period by two. The use of this “average” approach is supported by our observations that payers typically become inactive at a relatively consistent rate for our games. If future data indicates payers do not become inactive at a relatively consistent rate, we will modify our calculations accordingly. When a new game is launched and only a limited period of payer data is available for our analysis, then we also consider other factors to determine the estimated average playing period of payers, such as the estimated average playing period of payers for other recently launched games with similar characteristics. Advertising. We have contractual relationships with advertising networks, agencies, advertising brokers and directly with advertisers for advertisements within our games. We generally report our advertising revenue net of amounts retained by advertising networks, agencies, and brokers because we are not the principal for the advertisement transaction. However, certain advertisement placements that are directly between us and the end advertiser are recognized gross equal to the price paid to the Company by the end advertiser since we are the principal in the direct advertising arrangement. We recognize advertising revenue for engagement advertisements and offers, mobile advertisements, branded virtual items and sponsorships and other advertisements as advertisements are delivered to customers as long as evidence of the arrangement exists, the price is fixed or determinable, and collectability as reasonably assured. Price is determined to be fixed or determinable when there is a fixed price included a master contract, insertion order, or a third party statement of advertising activity. For engagement advertisements and offers, mobile advertisements, and other advertisements, delivery occurs when the advertisement has been displayed or the offer has been completed by the customer, as evidenced by third party verification reports supporting the number of advertisements displayed or offers completed. Certain branded in-game sponsorships that involve virtual items are deferred and recognized over the estimated life of the branded virtual good or as consumed, similar to online game revenue. For these branded virtual items and sponsorships, we determine the delivery criteria has been met based on delivery reporting received from third parties. Multiple-Element Arrangements. We allocate arrangement consideration in multiple-deliverable revenue arrangements at the inception of an arrangement to all deliverables based on the relative selling price method, generally based on our best estimate of selling price. Taxes Collected from Customers. We present taxes collected from customers and remitted to governmental authorities on a net basis within our consolidated statement of operations. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, money market funds and corporate debt with maturities of 90 days or less from the date of purchase. Short-Term Investments Short-term investments consist of corporate debt securities. The fair value of short-term investments is determined as the exit price in the principal market in which we would transact. Based on our intentions regarding our short-term investments, all short-term investments are classified as available-for-sale and are reported at fair value with unrealized gains and losses recorded as a separate component of other comprehensive income, net of income taxes. Realized gains and losses are determined using the specific-identification method and are reflected as a component of other income (expense), net in the consolidated statements of operations. We assess whether an other-than-temporary loss on our investments has occurred due to declines in fair value or other market conditions. When we determine that a decline in fair value is other-than-temporary, the cost basis of the individual security is written down to the fair value with the amount of the write-down recorded as a realized loss within other income (expense), net. The new cost basis will not be adjusted for subsequent recoveries in fair value. Determination of whether declines in fair value are other than temporary requires judgment regarding the amount and timing of recovery. No such impairments of short-term investments have been recorded in any of the periods presented. Restricted Cash Restricted cash consists of collateral for royalty agreements and funds held in escrow in accordance with the terms of our business acquisition agreements. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the original invoiced amount less an allowance for any potential uncollectible amounts. In evaluating our ability to collect outstanding receivable balances, we consider many factors, including the age of the balance, the customer’s payment history and current creditworthiness and current economic conditions that may affect our customers’ ability to pay. Bad debts are written off after all collection efforts have ceased. We do not require collateral from our customers. Property and Equipment, Net Property and equipment are recorded at historical cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the improvements or the lease term. The estimated useful lives of property and equipment are as follows: Property and Equipment Useful Life Computer equipment 3 years Software 2 to 3 years Building and building improvements 7 to 39 years Furniture and fixtures 2 years Leasehold improvements Shorter of useful life (generally up to 7 years) or remaining lease term Business Combinations In accounting for acquisitions through which a set of assets and activities are transferred to the Company, we perform an initial test to determine whether substantially all of the fair value of the gross assets transferred are concentrated in a single identifiable asset or a group of similar identifiable assets, such that the acquisition would not represent a business. If that test does not suggest that the set of assets and activities are not a business, we then perform a second test to evaluate whether the assets and activities transferred include inputs and substantive processes that together, significantly contribute to the ability to create outputs, which would constitute a business. If the result of the second test suggests that the acquired assets and activities constitute a business, we account for the transaction as a business combination. For our business combinations, we allocate the purchase price of the acquisition, which includes the estimated acquisition date fair value of contingent consideration (if applicable), to the tangible assets, liabilities and identifiable intangible assets acquired based on their estimated fair values at the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Determining the fair value of such items requires judgment, including estimating future cash flows or the cost to recreate an acquired asset. If actual results are lower than initial estimates, we could be required to record impairment charges in the future. Acquired intangible assets with definite lives are amortized over their estimated useful lives generally on a straight-line basis, unless evidence indicates a more appropriate method. Intangible assets with indefinite lives are not amortized but rather tested for impairment annually, or more frequently if circumstances indicate an impairment may exist. Acquisition-related expenses are expensed as incurred. During the one-year period beginning with the acquisition date, we may record certain purchase accounting adjustments related to the fair value of assets acquired and liabilities assumed against goodwill. After the final determination of the fair value of assets acquired or liabilities assumed, any subsequent adjustments are recorded to our consolidated statements of operations. The fair value of contingent consideration liabilities assumed from an acquisition are remeasured each reporting period and the changes in the fair value, if any, is recorded within operating expenses in our consolidated statement of operations each reporting period. Software Development Costs We review internal use software development costs associated with new games or updates to existing games on a quarterly basis to determine if the costs qualify for capitalization. Our studio teams follow an agile development process, whereas the preliminary project stage remains ongoing until just prior to worldwide launch, at which time final feature selection occurs. As such, the development costs are expensed as incurred to research and development in our consolidated statement of operations. We did not capitalize any software development costs in 2018, 2017 or 2016. Goodwill and Indefinite-Lived Intangible Assets Goodwill and indefinite-lived intangible assets are evaluated annually for impairment, or more frequently if circumstances exist that indicate that impairment may exist. When conducting our annual goodwill impairment assessment, we perform a quantitative evaluation of whether goodwill is impaired by comparing the fair value of our single reporting unit to its carrying value. If the carrying value of the reporting unit exceeds its fair value, then we record the amount by which the carrying value exceeds its fair value, if any, as impairment to goodwill. For our annual goodwill impairment analysis performed in the fourth quarter of 2018, our estimates of fair value were based on the market approach, which estimated the fair value of our reporting unit based on the Company’s market capitalization at the annual testing date. The result of the quantitative evaluation indicated that the estimated fair value of the reporting unit exceeded its carrying value. Accordingly, we concluded goodwill was not impaired. At least annually, we test recoverability of indefinite-lived intangible assets using a qualitative approach that considers whether it is more likely than not that the fair value of the intangible asset exceeds its carrying value. If qualitative factors indicate that it is more likely than not that the indefinite-lived intangible asset is impaired, a quantitative analysis is performed and the amount of any impairment loss recorded, if any, is measured as the difference between the carrying value and the fair value of the impaired intangible asset. We concluded that indefinite-lived intangible assets were not impaired as of December 31, 2018. Intangible Assets Intangible assets generally consist of definite-lived intangibles assets acquired from a prior business combination and are carried at historical cost less accumulated amortization. Amortization is generally recorded on a straight-lined basis, unless another method is deemed more appropriate, over the estimated useful lives of the assets, generally 12 to 84 months. Impairment of Long-Lived Assets Long-lived assets, including other intangible assets not considered indefinite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. If such circumstances are present, we assess the recoverability of the long-lived assets by comparing the carrying value to the undiscounted future cash flows associated with the related assets. If the future net undiscounted cash flows are less than the carrying value of the assets, the assets are considered impaired and an expense, equal to the amount required to reduce the carrying value of the assets to the estimated fair value, is recorded as an impairment of intangible assets in the consolidated statements of operations. Significant judgment is required to estimate the amount and timing of future cash flows and the relative risk of achieving those cash flows. Assumptions and estimates about future values and remaining useful lives are complex and often subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal fac |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 2. Revenue from Contracts with Customers On January 1, 2018, we adopted ASC Topic 606 using the modified retrospective transition method applied to contracts that were not complete as of the adoption date. Consolidated financial results for reporting periods beginning after January 1, 2018 are presented under ASC Topic 606, while prior period amounts continue to be reported in accordance with ASC Topic 605, “Revenue Recognition” As of January 1, 2018, we recorded a net reduction of $4.0 million to our opening deferred revenue and accumulated deficit balances, net of tax, due to the cumulative impact of adopting ASC Topic 606. The impact was driven by the recognition of revenue for certain advertising arrangements for which revenue was not previously recognized until payment was certain, partially offset by the deferral of previously recognized revenue for a symbolic license arrangement, for which revenue is recognized over the term of the license under ASC Topic 606. The impact of adopting ASC Topic 606 on our consolidated balance sheet as of December 31, 2018 was as follows (in thousands): As of December 31, 2018 Amounts as Reported Amounts without Adoption of ASC Topic 606 Increase (Decrease) from ASC Topic 606 Adoption Current liabilities: Deferred revenue $ 191,299 $ 202,238 $ (10,939 ) Total current liabilities 479,834 490,773 (10,939 ) Deferred revenue 1,586 1,013 573 Total liabilities 550,093 560,459 (10,366 ) Accumulated deficit (1,789,664 ) (1,800,030 ) 10,366 Total stockholders' equity 1,596,610 1,586,244 10,366 Total liabilities and stockholders' equity $ 2,146,703 $ 2,146,703 $ — As a result of adopting ASC Topic 606, deferred revenue as of December 31, 2018 decreased from certain advertising arrangements for which revenue would otherwise not be recognized until payment was certain under ASC Topic 605, partially offset by an increase to deferred revenue associated with the deferral of previously recognized revenue from the aforementioned symbolic license arrangement. The increase to stockholders’ equity as of December 31, 2018 from adopting ASC Topic 606 is the result of the net income impact discussed below and the $4.0 million transition adjustment recognized upon adoption of ASC Topic 606 on January 1, 2018. The impact of adopting ASC Topic 606 on our consolidated statement of operations for the year ended December 31, 2018 was as follows (in thousands): Year Ended December 31, 2018 Amounts as Reported Amounts without Adoption of ASC Topic 606 Increase (Decrease) from ASC Topic 606 Adoption Revenue: Advertising and other $ 236,331 $ 229,989 $ 6,342 Total revenue 907,208 900,866 6,342 Income (loss) from operations 6,762 420 6,342 Income (loss) before taxes 26,463 20,121 6,342 Net income (loss) $ 15,457 $ 9,115 $ 6,342 Net income (loss) per share attributable to common stockholders: Basic $ 0.02 $ 0.01 $ 0.01 Diluted $ 0.02 $ 0.01 $ 0.01 As a result of adopting ASC Topic 606 during the year ended December 31, 2018, advertising and other revenue increased primarily as a result of the aforementioned recognition of revenue for certain advertising arrangements for which revenue would otherwise not be recognized until payment was certain under ASC Topic 605 and the recognition of revenue over time from the symbolic license. There was no impact to net cash flows provided by (used in) operating, investing or financing activities for the year ended December 31 as a result of adopting ASC Topic 606. However, within cash flows from operating activities, net income (loss) is $6.3 million higher and the change in deferred revenue is $6.3 million lower as a result of adopting ASC Topic 606 during the year ended December 31, 2018. Disaggregation of Revenue The following table presents our revenue disaggregated by platform (in thousands): Year Ended December 31, 2018 2017 (1) 2016 (1) Online game: Mobile $ 590,436 $ 564,629 $ 413,919 Web 80,441 100,964 133,372 Online game total $ 670,877 $ 665,593 $ 547,291 Advertising and other: Mobile 225,085 174,867 160,452 Web 9,001 14,961 30,637 Other 2,245 5,969 3,040 Advertising and other total $ 236,331 $ 195,797 $ 194,129 Total revenue $ 907,208 $ 861,390 $ 741,420 (1) Amounts have not been retrospectively adjusted to reflect the adoption of ASC Topic 606. The following table presents our revenue disaggregated based on the geographic location of our payers (in thousands): Year Ended December 31, 2018 2017 (1) 2016 (1) United States $ 593,973 $ 567,315 $ 507,473 All other countries ( 2) 313,235 294,075 233,947 Total revenue $ 907,208 $ 861,390 $ 741,420 (1) Amounts have not been retrospectively adjusted to reflect the adoption of ASC Topic 606. (2) No foreign country exceeded 10% of our total revenue for any periods presented. Consumable virtual items accounted for 43% of online game revenue in the year ended December 31, 2018 and 44% of online game revenue in the same period of the prior year. Durable virtual items accounted for 57% of online game revenue in the year ended December 31, 2018 and 56% of online game revenue in the same period of the prior year. The estimated weighted average life of durable virtual items was nine months in the year ended December 31, 2018, compared to eight months in the same period of the prior year. Contract Balances We receive payments from our customers based on the payment terms established in our contracts. Payments for online game revenue are required at time of purchase, are non-refundable and relate to non-cancellable contracts that specify our performance obligations. Such payments are initially recorded to deferred revenue and are recognized into revenue as we satisfy our performance obligations. Payments for advertising arrangements are due based on the contractually stated payment terms. For advertising arrangements, the contract terms generally require payment within 30 to 60 days subsequent to the end of the month. Our right to payment from the customer is unconditional and therefore recorded as accounts receivable. During the year ended December 31, 2018, we recognized all of the revenue that was included in the $129.2 million current deferred revenue balance on January 1, 2018. The decrease in accounts receivable, net during the year ended December 31, 2018 was primarily driven by cash collections of current period and previously due amounts exceeding sales on account during the period, partially offset by a net increase in accounts receivable of $10.7 million on the acquisition date from our acquisition of Gram Games Teknoloji A.S (“Gram Games”). The increase in deferred revenue during the year ended December 31, 2018 was primarily driven by the sale of virtual items during the period, which includes contribution from Gram Games, exceeding revenue recognized from the satisfaction of our performance obligations. Unsatisfied Performance Obligations Substantially all of our unsatisfied performance obligations relate to contracts with an original expected length of one year or less. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Marketable Securities | 3. Marketable Securities The following tables summarize the amortized cost, gross unrealized gains and losses and fair value of our short-term investments as of December 31, 2018 and 2017 (in thousands): December 31, 2018 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Corporate debt securities $ 36,230 $ 2 $ — $ 36,232 Total $ 36,230 $ 2 $ — $ 36,232 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Corporate debt securities $ 308,684 $ — $ (178 ) 308,506 Total $ 308,684 $ — $ (178 ) $ 308,506 All of our short-term investments have contractual maturities of one year or less as of December 31, 2018. Changes in market interest rates and bond yields cause our short-term investments to fall below their cost basis, resulting in unrealized losses. As of December 31, 2018, we had unrealized losses of less than $0.1 million related to our short-term investments that had a fair value of $5.0 million. As of December 31, 2017, we had unrealized losses of $0.2 million related to short-term investments that had a fair value of $143.0 million. As of December 31, 2018 and 2017, none of our investments were in a material continuous unrealized loss position for more than 12 months. As of December 31, 2018, we did not consider any of our short-term investments to be other-than-temporarily impaired. We do not intend to sell, nor do we believe it is more likely than not that we will be required to sell, any of the securities in an unrealized loss position. When evaluating our investments for other-than-temporary impairment, we review factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer, our ability and intent to hold the security to maturity and whether it is more likely than not that we will be required to sell the investment before recovery of the amortized cost basis. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements Our financial assets consist of cash equivalents, short-term investments, accounts receivable, net and leasehold receivables. Cash equivalents and short-term investments, which consist of money market funds and corporate debt securities, are reported at fair value. Accounts receivable, net and leasehold receivables are stated at the net realizable amount, which approximates fair value. Our financial liabilities consist of accounts payable and accrued liabilities, which are stated at the invoiced or estimated payout amount, respectively, and approximate fair value, contingent consideration obligations as a result of business acquisitions, which are reported at fair value, and loans drawn against our Credit Facility; see Note 10 – “Debt” for further discussion on the loans drawn against our Credit Facility. As of December 31, 2018, our contingent consideration obligation represents the estimated fair value of the additional consideration payable in connection with our acquisition Gram Games in the second quarter of 2018. Under the terms of the acquisition, contingent consideration may be payable based on the achievement of certain future performance targets during each annual period following the acquisition date for a total of three years ending, with no maximum limit as to the contingent consideration achievable. We estimated the acquisition date fair value of the contingent consideration obligation using a Monte Carlo simulation. The significant unobservable inputs used in the fair value measurement of the contingent consideration obligation were Gram Games’ projected performance, a risk-adjusted discount rate and performance volatility similar to industry peers. Changes to projected performance of the acquired business could result in a higher or lower contingent consideration obligation in the future. At acquisition, the estimated fair value of the contingent consideration obligation was $43.5 million. As of December 31, 2018, the estimated fair value of the contingent consideration obligation increased to $49.0 million, primarily due to the increased probability of achievement and stronger than expected performance and as a result, we have recognized $5.5 million of expense within research and development expenses in our consolidated statement of operations during the year ended December 31, 2018. With respect to the PuzzleSocial acquisition that occurred in the third quarter of 2016, we estimated the acquisition date fair value of the contingent consideration obligation using discounted cash flow models and applied a discount rate that appropriately captured a market participant’s view of the risk associated with the respective obligation. The significant unobservable inputs used in the fair value measurement of the acquisition-related contingent consideration obligation were forecasted future cash flows, the timing of those cash flows and the risk-adjusted discount rate. During the second quarter of 2017, it was determined the future performance would not meet the required December 31, 2018 performance targets and the estimated fair value of the obligation was reduced to zero. The performance period ended on December 31, 2018 and the minimum required performance targets for the acquisition were not met. Accordingly, no contingent consideration is payable under the terms of the acquisition. We estimate fair value as the exit price, which represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between knowledgeable and willing market participants. The valuation techniques used to measure the fair value of the Company’s financial instruments, all of which have counterparties with high credit ratings, were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. We use a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Includes inputs, other than Level 1 inputs, that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs that are supported by little or no market activity. The composition of our financial assets and liabilities as of December 31, 2018 and 2017 among the three levels of the fair value hierarchy are as follows (in thousands): December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 565 $ — $ — $ 565 Corporate debt securities — 4,987 — 4,987 Short-term investments: Corporate debt securities — 36,232 — 36,232 Total financial assets $ 565 $ 41,219 $ — $ 41,784 Liabilities: Contingent consideration — — 49,000 49,000 December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 177,577 $ — $ — $ 177,577 Corporate debt securities — 44,923 — 44,923 Short-term investments: Corporate debt securities — 308,506 — 308,506 Total financial assets $ 177,577 $ 353,429 $ — $ 531,006 The following table presents the activity for the year ended December 31, 2018 related to our Level 3 liabilities (in thousands): Level 3 Liabilities: Total Contingent consideration obligation – December 31, 2017 $ — Additions 43,500 Fair value adjustments 5,500 Contingent consideration obligation – December 31, 2018 $ 49,000 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 5. Property and Equipment, Net Property and equipment, net consist of the following (in thousands): December 31, December 31, 2018 2017 Computer equipment $ 20,624 $ 21,583 Software 34,937 32,509 Land 89,130 89,130 Building and building improvements 203,873 199,070 Furniture and fixtures 10,321 10,376 Leasehold improvements 6,144 7,965 Total property and equipment, gross $ 365,029 $ 360,633 Less accumulated depreciation (98,472 ) (94,044 ) Total property and equipment, net $ 266,557 $ 266,589 The following represents our property and equipment, net by location (in thousands): December 31, December 31, 2018 2017 United States $ 262,844 $ 263,037 All other countries 3,713 3,552 Total property and equipment, net $ 266,557 $ 266,589 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 6. Acquisitions 2018 Acquisition On May 25, 2018, we acquired a 100% equity interest in Gram Games, a mobile game developer, to expand our hyper-casual and puzzle games portfolio, for total purchase consideration of $299.4 million. Of the total purchase consideration, $230.9 million was paid in cash and $25.0 million is retained in escrow for a period of 18 months for general representations and warranties for total cash consideration of $255.9 million. The remaining purchase consideration relates to contingent consideration valued at $43.5 million as of the acquisition date. The contingent consideration may be payable based on the achievement of certain future performance targets during each annual period following the acquisition date for a total of three years. We will record changes in the fair value of the contingent consideration obligation within our consolidated statement of operations in each future reporting period as they occur (see Note 4 – “Fair Value Measurements” for further discussion). Additionally, in connection with the transaction, the Company executed noncompetition agreements with the prior management owners of Gram Games for a term of three years following the acquisition date. However, the acquisition date estimated fair value of the noncompetition agreements was not material. The following table summarizes the acquisition date fair value of the tangible assets, liabilities assumed, intangible assets, contingent consideration and related goodwill acquired from Gram Games (in thousands): Total Cash $ 8,474 Accounts receivable, net 10,747 Prepaid expenses 279 Other current assets 937 Intangible assets, net: Developed technology, useful life of 5 years 43,000 Developed technology, useful life of 3 years 26,000 Trade names, useful life of 7 years 14,000 Trade names, useful life of 3 years 500 Goodwill 224,289 Property and equipment, net 898 Other non-current assets 329 Total assets acquired 329,453 Accounts payable (8,874 ) Income tax payable (502 ) Other current liabilities (5,164 ) Deferred tax liabilities, net (15,499 ) Total liabilities assumed (30,039 ) Total purchase price consideration $ 299,414 Non-current contingent consideration payable (43,500 ) Total cash consideration $ 255,914 The fair value of our intangible assets, net was determined using a risk-adjusted, discounted cash flow model. Goodwill, which is non-deductible for tax purposes, represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is primarily attributable to the assembled workforce of the acquired business and expected synergies at the time of the acquisition. The weighted average amortization period of the acquired intangible assets was 4.7 years at acquisition. Transaction costs incurred by the Company in connection with the Gram Games acquisition, including professional fees, were $1.7 million for the year ended December 31, 2018 and were recorded within general and administrative expenses in our consolidated statements of operations. The results of operations from Gram Games have been included in our consolidated statement of operations since the date of acquisition. Pro forma results of operations have not been presented as they are not material to our consolidated statements of operations for the year ended December 31, 2018. 2017 Acquisitions Acquisition of Solitaire Mobile Gaming Applications On February 14, 2017, we purchased Solitaire mobile game applications (“ Solitaire The following table summarizes the purchase date fair value of acquired net intangible assets (excluding the noncompetition agreement) from Harpan (in thousands): Total Developed technology, useful life of 5 years $ 20,471 Goodwill 14,610 Total $ 35,081 Goodwill, which is deductible for tax purposes, represents the excess of the purchase price over the fair value of the net intangible assets acquired and is primarily attributable to the expected synergies at the time of the acquisition. Acquisition of Peak Casual Card Game Division On December 12, 2017, we acquired the casual card game division of Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (“Peak Games”) to expand our card game portfolio, and in connection with the transaction, executed noncompetition agreements with Peak Games and its founder for a term of three years subsequent to the closing date. The total consideration paid to Peak Games was approximately $99.7 million in cash, of which $98.6 million was allocated to the business combination, $1.0 million was allocated to the noncompetition agreement with a useful life of three years and the remaining $0.1 million was allocated to a transition service agreement with Peak Games for certain data and reporting services over the next twelve months. The following table summarizes the purchase date fair value of the net tangible assets, intangible assets (excluding the noncompetition and transfer service agreements) and the related goodwill acquired from Peak Games (in thousands): Total Developed technology, useful life of 5 years $ 24,000 Trade names, useful life of 7 years 2,000 Goodwill 72,120 Net tangible assets acquired 500 Total assets acquired $ 98,620 Goodwill, which is deductible for tax purposes, represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is primarily attributable to the expected synergies at the time of the acquisition. The weighted average amortization period of the acquired intangible assets was 5.2 years at acquisition. Transaction costs incurred by the Company in connection with the Peak casual card game division and Solitaire The results of operations for the games acquired from Peak Games and Harpan |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | 7. Goodwill and Intangible Assets, Net The following table presents the changes to goodwill from December 31, 2016 to December 31, 2018 (in thousands): Goodwill – December 31, 2016 (1) $ 613,335 Additions 86,730 Foreign currency translation adjustments (2) 30,399 Goodwill – December 31, 2017 (1) $ 730,464 Additions 224,289 Foreign currency translation adjustments (2) (20,566 ) Goodwill – December 31, 2018 (1) $ 934,187 (1) There are no accumulated impairment losses at the beginning or end of any period presented. (2) The foreign currency translation adjustments are primarily related to adjustments on goodwill associated with the acquisition of NaturalMotion, for which the functional currency is denominated in British pounds. The details of our acquisition-related intangible assets as of December 31, 2018 and 2017 are as follows (in thousands): December 31, 2018 Gross Carrying Accumulated Net Book Value Amortization Value Developed technology $ 263,720 $ (167,664 ) $ 96,056 Trademarks, branding and domain names 32,772 (11,702 ) 21,070 Noncompetition agreements 8,390 (7,107 ) 1,283 Acquired lease intangibles 5,708 (5,517 ) 191 Total $ 310,590 $ (191,990 ) $ 118,600 December 31, 2017 Gross Carrying Accumulated Net Book Value Amortization Value Developed technology $ 197,908 $ (147,427 ) $ 50,481 Trademarks, branding and domain names 18,272 (10,152 ) 8,120 Noncompetition agreements 8,390 (3,079 ) 5,311 Acquired lease intangibles 5,708 (5,362 ) 346 Total $ 230,278 $ (166,020 ) $ 64,258 Our trademarks, branding and domain names intangible assets include $6.1 million of indefinite-lived intangible assets as of December 31, 2018 and December 31, 2017. The remaining assets were, and continue to be, amortized on a straight-line basis. Amortization expense related to other intangible assets for 2018, 2017 and 2016 was $29.0 million, $16.2 million and $29.0 million – exclusive of a $20.7 million impairment charge, respectively. As of December 31, 2018, the weighted-average remaining useful lives of our acquired intangible assets are 3.6 years for developed technology, 6.3 years for trademarks, branding, and domain names, 1.4 years for acquired lease intangibles, 1.1 years for noncompetition agreements, and 3.9 years in total, for all acquired intangible assets. As of December 31, 2018, future amortization expense related to our intangible assets is shown below (in thousands): Year ending December 31: 2019 $ 32,383 2020 31,145 2021 23,596 2022 16,368 2023 5,869 Thereafter 3,119 Total $ 112,480 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes On December 22, 2017, the 2017 Tax Act was enacted into law. Beginning January 1, 2018, the 2017 Tax Act reduced the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax-deferred, created new taxes on certain foreign sourced earnings, repealed the Alternative Minimum Tax (“AMT”), and expanded the number of individuals whose compensation is subject to a $1.0 million cap on deductibility, amongst other minor changes. In January 2018, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act ASC 740 Income Taxes , In certain cases, as described below, we made a reasonable estimate of the effects on our existing deferred tax balances and refundable AMT credit and recorded provisional amounts during the fourth quarter 2017. In other cases, we were not able to make a reasonable estimate during the period of enactment and continued to account for those items based on our existing accounting under ASC 740 Income Taxes 2017 Tax Act Effects: Year Ended December 31, 2017 We recognized a provisional tax benefit of $5.0 million during the fourth quarter of 2017 as a result of the 2017 Tax Act’s enactment, which was included as a component of the provision for income tax in the consolidated statement of operations during 2017. The components of the provisional tax benefit recognized during 2017 included: Deferred tax assets and liabilities . Certain deferred tax assets and liabilities were re-measured based on the rates at which they are expected to reverse in the future, which is generally 21%. The related provisional income tax benefit recorded to the consolidated statement of operations for the year ended December 31, 2017, net of valuation allowance, was $2.4 million. AMT credit. As part of the 2017 Tax Act, the corporate AMT was repealed. AMT credits generated by the Company in previous years are refundable in tax years beginning after 2017 and before 2022 with any remaining credits being fully refundable in 2022. The related provisional income tax benefit recorded to the consolidated statement of operations for the year ended December 31, 2017 for the AMT credit refund was $2.6 million. The receivable for the refundable AMT credit was recorded to non-current other assets within the consolidated balance sheet. Officer compensation . As noted above, the 2017 Tax Act expanded the number of individuals whose compensation is subject to a $1.0 million cap on deductibility and required companies to include performance-based compensation (such as bonuses) in the calculation. As a result, the Company recorded a provisional amount to reduce the future tax benefit related to officers’ stock-based compensation for the year ended December 31, 2017. However, there was no net impact to the provision for income tax as the provisional amount was offset by an equal reduction in the Company's deferred tax asset valuation allowance. Refer to discussion below on the reversal of this provisional amount during the year ended December 31, 2018. One-time transitional tax. As part of the 2017 Tax Act, total foreign earnings and profits (“E&P”) after 1986, that were previously deferred from U.S. federal taxation, are subject to a one-time tax on the mandatory deemed repatriation of foreign earnings. The Company’s provisional analysis of the one-time transition tax resulted in no additional taxes being owed due to the overall accumulated E&P deficit. 2017 Tax Act Effects: Year Ended December 31, 2018 During 2018, no further adjustments were made to the provisional amounts previously recorded during the fourth quarter of 2017, except the officer compensation matter discussed below. However, we did recognize $3.9 million of tax expense during the fourth quarter of 2018 as a result of the 2017 Tax Act’s enactment, which is included as a component of the provision for income tax in the consolidated statement of operations. The components of the tax expense recognized during 2018 included: Base Erosion and Anti-Abuse Tax (“BEAT”). During the fourth quarter of 2018, the United States Treasury proposed regulations concerning the types of related party payments subject to BEAT. Further, the guidance clarified that for a company utilizing net operating losses, the starting point for calculating “modified taxable income” for BEAT is zero. As a result of the proposed regulations, the Company recorded $3.9 million tax expense to the consolidated statement of operations for the year ended December 31, 2018. Global Intangible Low-Taxed Income (“GILTI”). With respect to the GILTI provisions, companies may make an accounting policy election to either (i) account for GILTI as a component of tax expense in the period in which the entity is subject to the rules or (ii) account for GILTI in the entity’s measurement of deferred taxes. The Company elected to account for the GILTI provisions as a component of tax expense in the period in which the entity is subject to the rules. The Company did not incur any GILTI related tax expense in 2018 due to cumulative net losses in its foreign jurisdictions. Officer compensation . T he Internal Revenue Service (“IRS”) issued guidance to clarify the application of the 2017 Tax Act, which expanded the definition of a “covered employee” subject to annual tax-deductible compensation limits to include an entity’s Chief Financial Officer (“CFO”). The IRS guidance clarified that compensatory contracts (e.g., ZSU or stock option grants) in effect prior to the enactment of the 2017 Tax Act were eligible to be grandfathered into the pre-2017 Tax Act rules and are therefore not subject to certain limitations. All of our current stock compensation awards vesting to the CFO were granted prior to the enactment date, and thus, will be treated under the pre-2017 Tax Act rules. As a result, the Company recorded a reversal of the provisional amount originally recorded during the fourth quarter of 2017. However, there was no net impact to the provision for income tax as the amount was offset by an equal addition to the Company's deferred tax asset valuation allowance. Income (loss) before income taxes consists of the following for the periods shown below (in thousands): Year Ended December 31, 2018 2017 2016 United States $ 29,941 $ (6,081 ) $ (62,037 ) International (3,478 ) 43,664 (42,694 ) Total $ 26,463 $ 37,583 $ (104,731 ) The provision for (benefit from) income taxes consists of the following for the periods shown below (in thousands): Year Ended December 31, 2018 2017 2016 Current tax expense (benefit): Federal $ 3,918 $ (2,132 ) $ (30 ) State 205 142 2 Foreign 11,967 13,562 7,178 Total current tax expense (benefit) $ 16,090 $ 11,572 $ 7,150 Deferred tax (benefit) expense: Federal $ 1,350 $ (1,231 ) $ (2,809 ) State 444 300 (20 ) Foreign (6,878 ) 303 (879 ) Total deferred tax (benefit) expense $ (5,084 ) $ (628 ) $ (3,708 ) Provision for (benefit from) income taxes $ 11,006 $ 10,944 $ 3,442 The reconciliation of federal statutory income tax provision (benefit) to our effective income tax provision is as follows (in thousands): Year Ended December 31, 2018 2017 2016 Expected provision for (benefit from) income taxes at U.S. federal statutory rate (1) $ 5,557 $ 13,154 $ (36,656 ) State income taxes - net of federal benefit 205 142 2 BEAT obligation 3,918 — — Income taxed at foreign rates 4,447 (3,643 ) 20,112 Stock-based compensation (3,457 ) (2,898 ) 4,295 Tax reserve for uncertain tax positions 1,676 3,101 2,382 Change in valuation allowance (5,610 ) (51,976 ) 14,786 Impact of change in enacted tax rates (94 ) 48,296 69 Acquisition costs 536 — 110 Contingent consideration 1,155 (252 ) (2,781 ) Officer's compensation limitation 2,340 2,582 — Investment in subsidiaries — 1,676 — Other 333 762 1,123 Actual provision for (benefit from) income taxes $ 11,006 $ 10,944 $ 3,442 (1) For the purpose of the reconciliation above, the U.S. federal statutory rate was 21% for the year ended December 31, 2018 and 35% for both the years ended December 31, 2017 and 2016. Our analysis of the one-time transition tax liability for our foreign subsidiaries enacted by the 2017 Tax Act did not result in additional taxes being owed, considering our accumulated deficit position at December 31, 2017. Additionally, no other income taxes (state or foreign) have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations. As of December 31, 2018 and 2017, the cumulative amount of earnings upon which income taxes have not been provided is approximately $73.0 million and $48.8 million, respectively. Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis using enacted tax rates in effect for the year in which the differences are expected to be reversed. Our deferred tax assets and liabilities are as follows (in thousands): December 31, December 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 60,737 $ 66,680 Tax credit carryforwards 103,740 99,966 Acquired intangible assets 28,957 25,692 Equity based compensation 10,150 7,467 Accrued expenses 3,718 5,505 Other accrued compensation 6,524 4,747 Charitable contributions 2,533 2,886 State taxes 351 248 Other — 735 Total deferred tax assets $ 216,710 $ 213,926 Less: Valuation allowance (205,989 ) (209,652 ) Deferred tax assets, net of valuation allowance $ 10,721 $ 4,274 Deferred tax liabilities: Acquired intangible liabilities $ (11,637 ) $ — Goodwill (5,000 ) (3,210 ) Deferred rent (2,334 ) (1,073 ) Depreciation (4,694 ) (3,839 ) Other (2,547 ) (1,248 ) Total deferred tax liabilities $ (26,212 ) $ (9,370 ) Net deferred taxes $ (15,491 ) $ (5,096 ) Due to our history of net operating losses, we believe it is more likely than not that certain federal, state and foreign deferred tax assets will not be realized in future periods as of December 31, 2018. The decrease in the valuation allowance during the year ended December 31, 2018 is primarily related to the use of net operating losses. Net operating loss and tax credit carryforwards as of December 31, 2018 are as follows (in thousands): Amount Expiration years Net operating losses, federal $ 363,599 2028 - 2036 Net operating losses, state 216,531 2019 - 2037 Tax credits, federal 92,375 2027 - 2038 Tax credits, state 86,982 2021 - indefinite The federal and state net operating loss carryforwards are subject to various annual limitations under Section 382 of the Internal Revenue Code and similar state provisions. The following table reflects changes in the gross unrecognized tax benefits (in thousands): December 31, 2015 $ 142,845 Additions based on tax positions related to 2016 9,043 Additions for tax positions of prior years 68 Reductions for tax positions of prior years (856 ) December 31, 2016 $ 151,100 Additions based on tax positions related to 2017 8,598 Additions for tax positions of prior years 427 Decreases related to expiration of prior year tax positions (31 ) Decreases related to settlements of prior year tax positions (54 ) December 31, 2017 $ 160,040 Additions based on tax positions related to 2018 4,355 Additions for tax positions of prior years 815 Decreases related to expiration of prior year tax positions (1,230 ) December 31, 2018 $ 163,980 We classify uncertain tax positions as non-current unrecognized tax liabilities unless expected to be paid within one year or otherwise directly related to an existing deferred tax asset, in which case the uncertain tax position is recorded as an offset to the asset on the consolidated balance sheet. As of December 31, 2018, $154.8 million of our gross unrecognized tax benefits were recorded as a reduction of the related deferred tax assets and the remaining $9.2 million of our gross unrecognized tax benefits were recorded as non-current liabilities in our consolidated balance sheets. If the balance of gross unrecognized tax benefits of $164.0 million as of December 31, 2018 was realized, this would have resulted in a tax benefit of $9.2 million within our provision for income taxes at such time. If the balance of gross unrecognized tax benefits of $160.0 million as of December 31, 2017 was realized, this would have resulted in a tax benefit of $9.0 million within our provision of income taxes at such time. During all years presented, we recognized interest and penalties related to unrecognized tax benefits within the provision for income taxes on the consolidated statements of operations. The amount of interest and penalties recorded to the consolidated statements of operations during 2018, 2017 and 2016, were $0.2 million, $0.3 million and $0.1 million, respectively, and the amount of interest and penalties accrued as of December 31, 2018 and 2017 was $0.9 million and $1.0 million, respectively. We file income tax returns in the U.S. federal jurisdiction as well as many U.S. states and certain foreign jurisdictions. The material jurisdictions in which we are subject to potential examination include the U.S., United Kingdom and Ireland. We are subject to examination in these jurisdictions for all years since our inception in 2007. Fiscal years outside the normal statute of limitation remain open to audit by tax authorities due to tax attributes generated in those early years which have been carried forward and may be audited in subsequent years when utilized. We do not expect any material changes to our unrecognized tax benefits within the next twelve months. |
Other Current and Non-Current L
Other Current and Non-Current Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Current and Non-Current Liabilities | 9. Other Current and Non-Current Liabilities Other current liabilities consist of the following (in thousands): December 31, December 31, 2018 2017 Accrued accounts payable $ 22,669 $ 38,046 Accrued compensation liability 41,554 33,815 Accrued restructuring liability 3,449 3,674 Contingent consideration payable 17,300 — Accrued payable from acquisitions 35,000 12,800 Accrued lease incentive obligation 24,895 20,059 Value-added taxes payable 2,624 3,453 Other current liabilities 9,338 11,242 Total other current liabilities $ 156,829 $ 123,089 Our accrued compensation liability represents employee bonus and other payroll withholding expenses, while other current liabilities include various expenses that we accrue for transaction taxes, customer deposits and accrued vendor expenses. Other non-current liabilities consist of the following (in thousands): December 31, December 31, 2018 2017 Contingent consideration payable $ 31,700 $ — Accrued payable from acquisitions — 20,000 Accrued restructuring liability 7,613 10,856 Uncertain tax positions liability, including interest and penalties 10,065 8,975 Accrued lease incentive obligation — 4,836 Other non-current liabilities 3,208 4,245 Total other non-current liabilities $ 52,586 $ 48,912 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt In December 2018, the Company entered into a credit agreement (“the Credit Agreement”) with Bank of America, N.A. that provides for a three-year revolving credit facility (“the Credit Facility”) in an aggregate principal amount of up to $200.0 million and is secured by a blanket lien on the Company’s assets, excluding the Company’s San Francisco corporate headquarters. The Credit Facility will reduce to $150.0 million upon the earlier of (i) a sale of the Company’s corporate headquarters or (ii) the first anniversary of the closing date, unless, within 90 days after such anniversary, the Company mortgages its corporate headquarters as collateral to secure the Credit Facility. The Company may borrow, repay and re-borrow funds under the Credit Agreement until the third anniversary of the closing date, at which time the Credit Facility will terminate, and all outstanding revolving loans, together with all accrued and unpaid interest, must be repaid. Finally, the Company may use the proceeds of future borrowings under the Credit Facility for general corporate purposes. At the Company’s option, revolving loans accrue interest at a per annum rate based on either (i) the base rate plus a margin ranging from 0.50% to 1.00%, determined based on the Company’s consolidated leverage ratio for the four most recent fiscal quarters (“the Consolidated Leverage Ratio”) or (ii) the LIBOR rate (for interest periods of one, two, three or six months) plus a margin ranging from 1.50% to 2.00%, determined based on the Company’s Consolidated Leverage Ratio (“LIBOR Loan”). The base rate is defined as the highest of (i) the federal funds rate, plus 0.50%, (ii) Bank of America, N.A.’s prime rate and (iii) the LIBOR rate for a 1-month interest period plus 1.00%. The Company is also obligated to pay an ongoing commitment fee on undrawn amounts at a rate ranging from 0.25% to 0.35%, determined based on the Company’s Consolidated Leverage Ratio. On December 28, 2018, the Company drew against the Credit Facility for a $100.0 million LIBOR Loan, with a three-month interest period at an interest rate of 4.31%. The Company has an additional $100.0 million of borrowing capacity remaining under the Credit Facility as of December 31, 2018. The estimated fair value of the loan drawn against our Credit Facility, which is based on Level 2 inputs, approximated its carrying value as of December 31, 2018. Debt issuance costs associated with the Credit Facility were capitalized and will amortize on a straight-line basis over the three-year term of the Credit Agreement, with the expense recorded to other income (expense), net in our consolidated statement of operations. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 11. Restructuring We recorded the following net restructuring charges within our consolidated statements of operations for the years presented (in thousands): Year Ended December 31, 2018 2017 2016 Cost of revenue $ 27 $ — $ — Research and development 96 2,347 124 Sales and marketing — 149 — General and administrative 885 688 1,814 Total restructuring charges $ 1,008 $ 3,184 $ 1,938 Significant restructuring activities related to the Company’s employees and other charges, summarized by plan, are presented in the table below (in thousands): Q4 2017 Q2 2015 Other Restructuring Plan Restructuring Plan Restructuring Plans Total Restructuring liability – December 31, 2015 $ — $ 26,406 $ 2,622 $ 29,028 Restructuring expense and adjustments — 926 1,012 1,938 Cash payments — (7,944 ) (3,550 ) (11,494 ) Restructuring liability – December 31, 2016 — 19,388 84 19,472 Restructuring expense and adjustments 1,466 (451 ) 2,169 3,184 Cash payments (1,095 ) (4,785 ) (2,246 ) (8,126 ) Restructuring liability – December 31, 2017 371 14,152 7 14,530 Restructuring expense and adjustments 723 254 31 1,008 Cash payments (911 ) (3,527 ) (38 ) (4,476 ) Restructuring liability – December 31, 2018 $ 183 $ 10,879 $ — $ 11,062 Cumulative costs to date, as of December 31, 2018 $ 2,189 $ 34,578 $ 6,025 $ 42,792 Total costs expected to be incurred, as of December 31, 2018 $ 2,189 $ 35,112 $ 6,025 $ 43,326 Q4 2017 Restructuring Plan During the fourth quarter of 2017, we implemented a restructuring plan, which included a reduction in work force to reduce the Company’s long-term cost structure. As a result of ongoing initiatives associated with this restructuring plan, we recorded $0.7 million of expense in the year ended December 31, 2018, which is included in operating expenses in our consolidated statement of operations. The $0.7 million restructuring charge is primarily comprised of $0.3 million of employee severance costs and $0.4 million of other costs. For the year ended December 31, 2017, we recorded expense of $1.5 million in our consolidated statement of operations, which is primarily comprised of employee severance costs. The remaining costs are expected to be paid out within the next quarter. We also executed an assignment of the office lease associated with this restructuring activity during the third quarter of 2018. The original lease term ends in November 2022, with a lessee option to early terminate in November 2019. All terms under the original lease were assigned in full to the assignee, with the assignee becoming primarily liable to make rental payments directly to the landlord. Further, the assignee was required to provide the landlord a security deposit equal to twelve months rent to be used by the landlord in the event of the assignee’s non-performance under the lease. In connection with the assignment, the Company became secondarily liable in the event the assignee is unable to perform under the lease. Based on the current rent and related payments, the maximum exposure to the Company is estimated to be $2.3 million as of December 31, 2018. However, the lease is subject to periodic rate reviews which allow the landlord to make market adjustments to the rent and other related payments and accordingly, the maximum exposure may be greater than this amount. In estimating the fair value of this guarantee, the Company considered, amongst other factors, the assignee’s financial position, amount of the security deposit provided to the landlord, length of the remaining lease term and the assignee’s contractual ability, if necessary, to early terminate the lease. As of December 31, 2018, the fair value of this guarantee is not material. Q2 2015 Restructuring Plan During the second quarter of 2015, we implemented a restructuring plan, which included a reduction in work force to reduce the Company’s long-term cost structure. As a result of ongoing initiatives associated with this restructuring plan, we recorded $0.3 million of expense in the year ended December 31, 2018, which is included in operating expenses in our consolidated statement of operations. The $0.3 million restructuring charge is primarily comprised of lease termination costs. For the year ended December 31, 2017, we recorded a net benefit of $0.5 million in our consolidated statements of operations, primarily related to lease termination items. For the year ended December 31, 2016, we recorded expense of $0.9 million in our consolidated statement of operations, which is comprised of $0.7 million of lease termination costs, $0.1 million of employee severance costs and $0.1 million of other costs. The remaining costs are expected to be paid within the next 3.4 years. |
Stockholders' Equity and Other
Stockholders' Equity and Other Employee Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity and Other Employee Benefits | 12. Stockholders’ Equity and Other Employee Benefits Common Stock Our three classes of common stock are Class A, Class B and Class C common stock. On May 2, 2018, our founder, Mark Pincus, elected to convert certain outstanding shares of Class B common stock and all outstanding shares of Class C common stock controlled by Mr. Pincus and an affiliated investment entity into an equivalent number of shares of Class A common stock. As a result of Mr. Pincus’ conversion, the remaining shares of Class B common stock represented less than 10% of the total voting power of all Zynga stockholders and, accordingly, each remaining outstanding share of Class B common stock automatically converted into one share of Class A common stock. Each Zynga stockholder now has one vote per share on all matters subject to stockholder vote. Following the conversion, no shares of Class B or Class C common stock are outstanding and the total number of authorized shares of capital stock will be reduced to account for the elimination of the Class B and Class C common stock. The following are the rights and privileges of our classes of common stock: Dividends. The holders of outstanding shares of our common stock are entitled to receive dividends out of funds legally available at the times and in the amounts which our Board of Directors may determine. Voting Rights. Holders of our Class A common stock are entitled to one vote per share. Liquidation. Upon our liquidation, dissolution or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our Class A common stock. Preemptive or Similar Rights. None of our common stock is entitled to preemptive rights or subject to redemption. Conversion. Our Class A common stock is not convertible into any other shares of our capital stock. The Class B and Class C common stock converted into Class A common stock may not be reissued. Stock Repurchases In April 2018, a share repurchase program was authorized for up to $200.0 million of our outstanding Class A common stock (“2018 Share Repurchase Program”). The timing and amount of any stock repurchases will be determined based on market conditions, share price and other factors. The program does not require us to repurchase any specific number of shares of our Class A common stock and may be modified, suspended or terminated at any time without notice. The stock repurchase program will be funded from existing cash on hand or other sources of funding as the Company may determine to be appropriate. Share repurchases under these authorizations may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, purchases through 10b5-1 plans or by any combination of such methods. During the year ended December 31, 2018, we repurchased 7.1 million shares for our Class A common stock under the 2018 Share Repurchase Program at a weighted average price of $3.71 per share for a total of $26.2 million. In November 2016, we announced that our Board of Directors authorized a share repurchase program allowing us to repurchase up to $200.0 million of our outstanding shares of Class A common stock (“2016 Share Repurchase Program”). In 2016, we repurchased 12.3 million shares of our Class A common stock under the repurchase program at a weighted average price of $2.76 per share for a total of $34.2 million. In 2017, we repurchased 36.3 million shares for our Class A common stock under the 2016 Share Repurchase Program at a weighted average price of $2.78 per share for a total of $101.0 million. During 2018, we completed the 2016 Share Repurchase Program by repurchasing 18.2 million shares of our Class A common stock at a weighted average price of $3.59 per share for a total of $65.4 million. All of our stock repurchases were made through open market purchases under Rule 10b5-1 plans and subsequently retired. Equity Incentive Plans and Stock-Based Compensation Expense In 2007, we adopted the 2007 Equity Incentive Plan (the “2007 Plan”) for the purpose of granting stock options and ZSUs to employees, directors and non-employees. Concurrent with the effectiveness of our initial public offering on December 15, 2011, we adopted the 2011 Equity Incentive Plan (the “2011 Plan”), and all remaining common shares reserved for future grant or issuance under the 2007 Plan were added to the 2011 Plan. The 2011 Plan was adopted for purposes of granting stock options and ZSUs to employees, directors and non-employees. The number of shares of our Class A common stock reserved for future issuance under our 2011 Plan will automatically increase on January 1 of each year, beginning on January 1, 2012, and continuing through and including January 1, 2021, by 4% of the total number of shares of our capital stock outstanding as of December 31 of the preceding calendar year or such lesser number of shares that may be determined by the Company’s Board of Directors. We recorded stock-based compensation expense related to grants of employee stock options, ZSUs and performance-based awards in our consolidated statements of operations as follows (in thousands): Year Ended December 31, 2018 2017 2016 Cost of revenue $ 1,584 $ 1,838 $ 3,720 Research and development 42,151 42,176 84,236 Sales and marketing 8,495 7,281 7,254 General and administrative 16,009 13,220 12,251 Total stock-based compensation expense $ 68,239 $ 64,515 $ 107,461 Stock Option Activity All stock options granted under the 2011 Plan generally vest over four to five years, with 25% to 20% vesting after one year and the remainder vesting monthly thereafter over 36 to 48 months, respectively. The stock options have a contract term of 10 years and the related expense is determined using the Black-Scholes option pricing model on the date of grant. The following table shows stock option activity for the year ended December 31, 2018 (in thousands, except weighted-average exercise price and weighted-average contractual term): Outstanding Options Stock Options Weighted- Average Exercise Price Aggregate Intrinsic Value of Stock Options Outstanding Weighted- Average Contractual Term (in years) Balance as of December 31, 2017 32,964 $ 2.07 $ 64,114 6.32 Granted 6,122 3.48 Forfeited, expired and cancelled (523 ) 3.66 Exercised (2,378 ) 1.14 Balance as of December 31, 2018 36,185 $ 2.35 $ 57,510 6.23 As of December 31, 2018 Exercisable options 18,604 $ 1.74 $ 41,016 4.38 Vested and expected to vest 36,185 $ 2.35 $ 57,510 6.23 The following table presents the weighted-average grant date fair value and related assumptions used to estimate the fair value of our stock options: Year Ended December 31, 2018 2017 2016 Expected term, in years 6 6 6 Risk-free interest rates 2.14 % 2.12 % 1.53 % Expected volatility 47 % 46 % 50 % Dividend yield — — — Weighted-average estimated fair value of stock options granted during the year $ 1.61 $ 1.75 $ 1.30 The aggregate intrinsic value of stock options exercised during 2018, 2017 and 2016 was $6.3 million, $4.9 million and $8.1 million, respectively. The total grant date fair value of options that vested during December 31, 2018, 2017 and 2016 was $6.0 million, $8.0 million and $6.0 million, respectively. As of December 31, 2018, total unrecognized stock-based compensation expense of $22.8 million related to unvested stock options is expected to be recognized over a weighted-average recognition period of approximately 2.7 years. ZSU Activity ZSUs are granted to eligible employees under the 2011 Plan. In general, ZSU awards vest in annual or quarterly installments over a period of four years, are subject to the employee’s continuing service to us and do not have an expiration date. The cost of ZSUs is determined using the fair value of our common stock on the date of grant. The following table shows a summary of ZSU activity for the year ended December 31, 2018 (in thousands, except weighted-average grant date fair value): Outstanding ZSUs Weighted- Average Grant Date Aggregate Intrinsic Fair Value Value of Shares (per share) Unvested ZSUs Unvested as of December 31, 2017 45,478 $ 3.00 $ 181,912 Granted 32,493 3.85 Vested (17,135 ) 2.97 Forfeited (8,354 ) 3.29 Unvested as of December 31, 2018 52,482 $ 3.49 $ 206,254 As of December 31, 2018, total unamortized stock-based compensation expense relating to ZSUs amounted to $160.4 million over a weighted-average recognition period of approximately 2.7 years. Performance-Based Awards In 2017, certain executives were eligible to receive performance-based ZSUs, which are subject to performance and time-based vesting requirements. The target number of shares of the performance-based awards are adjusted based on our business performance measured against the performance goals approved by the Compensation Committee at the beginning of the performance period. Generally, if the performance criteria are satisfied, one-half of the award vests immediately and the other half vests on the one-year anniversary. Stock-based compensation expense for performance-based ZSUs granted in connection with our executive compensation plan is recorded based on the probability of achievement of certain performance milestones. In 2018, 2017 and 2016, no expense was recorded in connection with performance awards granted under our executive compensation plan. Certain employees are eligible to receive performance-based ZSUs, which are subject to performance and time-based vesting requirements. The target number of shares of the performance-based awards are adjusted based on our business performance measured against the performance goals approved by the Compensation Committee at the date of employment with the Company. Generally, if the performance criteria are satisfied, 25% of the award will vest immediately or soon after with the remaining vesting ratably for each quarter or six month periods thereafter. Stock-based compensation expense for performance-based ZSUs granted to these employees is recorded based on the probability of achievement of the performance milestones. In 2018 and 2017, we recorded $1.8 million and $2.4 million, respectively, of stock-based compensation expense related to these performance-based ZSUs. Additionally, during 2017, one performance-based ZSU award was modified to eliminate the performance vesting requirements, thus only requiring time-based vesting. At the time of modification, there was no incremental compensation costs recorded. During 2016, we recorded no stock-based compensation expense related to performance-based ZSUs. 2011 Employee Stock Purchase Plan Our 2011 Employee Stock Purchase Plan (“2011 ESPP”), was approved by our Board of Directors in September 2011 and by our stockholders in November 2011 and amended in August 2012. The number of shares of our Class A common stock reserved for future issuance under our 2011 ESPP will automatically increase on January 1 of each year, beginning on January 1, 2012, and continuing through and including January 1, 2021, by the lesser of 2% of the total number of shares of our capital stock outstanding as of December 31 of the preceding calendar year, 25,000,000 shares or the number of shares that may be determined by the Company’s Board of Directors. Our 2011 ESPP permits participants to purchase shares of our Class A common stock through payroll deductions up to 15% of their earnings, subject to a maximum of 5,000 shares available for purchase on any purchase date. Unless otherwise determined by the administrator, the purchase price of the shares will be 85% of the lower of the fair market value of our Class A common stock on the first day of an offering or on the date of purchase. The ESPP offers two purchase dates within each annual period, resulting in a six-month and twelve-month look-back. Additionally, the ESPP contains an automatic reset feature after the first six months of each annual period, such that if the fair market value of our Class A common stock has decreased from the original offering date, the offering will automatically terminate and all participants will be re-enrolled in the new, lower-priced offering for the remaining six months. Participants may end their participation at any time during an offering and will be refunded their accrued contributions that have not yet been used to purchase shares. Participation ends automatically upon termination of employment. As of December 31, 2018, there were $3.1 million of employee contributions withheld by the Company. During the year ended December 31, 2018, the Company recognized $2.9 million of stock-based compensation expense related to the 2011 ESPP. Employee Savings Plan We have a defined contribution plan, which is qualified under Section 401(k) of the Internal Revenue Code. Participating employees may contribute up to 90% of their eligible compensation, or the statutory limit, whichever is lower. In 2018, 2017 and 2016, we contributed one dollar for each dollar a participant contributed, with a maximum contribution of 3% of each employee’s eligible compensation, subject to a maximum total contribution mandated by the IRS. The total expense for these savings plans was $4.7 million, $4.5 million and $4.5 million in 2018, 2017 and 2016, respectively. Common Stock Reserved for Future Issuance As of December 31, 2018, we had reserved shares of common stock for future issuance as follows (in thousands): December 31, 2018 Stock options outstanding 36,185 ZSUs outstanding 52,482 2011 Equity Incentive Plan 132,288 2011 Employee Stock Purchase Plan 107,578 Total 328,533 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 13. Accumulated Other Comprehensive Income (Loss) The following table shows a summary of changes in accumulated other comprehensive income (loss) by component from December 31, 2016 to December 31, 2018 (in thousands): Foreign Currency Translation Unrealized Gains on Available- for-Sale Marketable Securities Total Balance as of December 31, 2016 $ (128,671 ) $ (23 ) $ (128,694 ) Other comprehensive income (loss) before reclassifications 35,352 (155 ) 35,197 Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss) 35,352 (155 ) 35,197 Balance as of December 31, 2017 $ (93,319 ) $ (178 ) $ (93,497 ) Other comprehensive income (loss) before reclassifications (25,122 ) 180 (24,942 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss) (25,122 ) 180 (24,942 ) Balance as of December 31, 2018 $ (118,441 ) $ 2 $ (118,439 ) |
Net Income (Loss) Per Share of
Net Income (Loss) Per Share of Common Stock | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share of Common Stock | 14. Net Income (Loss) Per Share of Common Stock As noted previously, our founder, Mark Pincus, elected to convert certain outstanding shares of Class B common stock and all outstanding shares of Class C common stock controlled by Mr. Pincus and an affiliated investment entity into an equivalent number of shares of Class A common stock in May 2018. Following the conversion, no shares of Class B or Class C common stock are outstanding and accordingly, the Company calculated basic and dilutive net income (loss) per share under a single-class method for the current period. Prior to the conversion noted above, we computed net income (loss) per share of common stock using the two-class method required for participating securities and multiple classes of common stock. Prior to the date of the initial public offering, we considered all series of our convertible preferred stock to be participating securities due to their non-cumulative dividend rights. Additionally, we considered shares issued upon the early exercise of options subject to repurchase and unvested restricted shares to be participating securities, because the holders of such shares have non-forfeitable dividend rights in the event we declare a dividend for common shares. In accordance with the two-class method, net income allocated to these participating securities, which include participation rights in undistributed net income, is subtracted from net income (loss) to determine total net income (loss) to be allocated to common stockholders. Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding, including potential dilutive securities. In computing diluted net income (loss) per share, net income (loss) attributable to common shareholders is re-allocated to reflect the potential impact of dilutive securities, including stock options, unvested ZSUs, unvested performance-based ZSUs and ESPP withholdings. For periods in which we have generated a net loss or there is no income attributable to common stockholders, we do not include dilutive securities in our calculation of diluted net income (loss) per share, as the impact of these awards is anti-dilutive. The following table sets forth the computation of basic and diluted net income (loss) per share of common stock (in thousands, except per share data): Year Ended December 31, 2018 Class A (1) BASIC: Net income (loss) attributable to common stockholders – basic $ 15,457 Weighted-average common shares outstanding – basic 862,460 Net income (loss) per share attributable to common stockholders – basic $ 0.02 DILUTED: Net income (loss) attributable to common stockholders – basic $ 15,457 Weighted-average common shares outstanding – basic 862,460 Weighted-average effect of dilutive securities: Stock options and employee stock purchase plan 10,958 ZSUs 15,212 Performance-based ZSUs 954 Weighted-average common shares outstanding – diluted 889,584 Net income (loss) per share attributable to common stockholders – diluted $ 0.02 (1) The net income (loss) per share calculation for the year ended December 31, 2018 is presented as if the one-for-one class conversion occurred as of the beginning of the period. Year Ended December 31, 2017 2016 Class Class Class Class Class Class A B C A B C BASIC: Net income (loss) attributable to common stockholders – basic $ 23,795 $ 2,204 $ 629 $ (92,988 ) $ (12,660 ) $ (2,525 ) Weighted-average common shares outstanding – basic 776,625 71,925 20,517 755,460 102,850 20,517 Net income (loss) per share attributable to common stockholders – basic $ 0.03 $ 0.03 $ 0.03 $ (0.12 ) $ (0.12 ) $ (0.12 ) DILUTED: Net income (loss) attributable to common stockholders – basic $ 23,795 $ 2,204 $ 629 $ (92,988 ) $ (12,660 ) $ (2,525 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares 629 — — (2,525 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares 2,204 — — (12,660 ) — — Reallocation of net income (loss) to Class B and Class C shares — 180 (20 ) — — — Net income (loss) attributable to common stockholders – diluted $ 26,628 $ 2,384 $ 609 $ (108,173 ) $ (12,660 ) $ (2,525 ) Weighted-average common shares outstanding – basic 776,625 71,925 20,517 755,460 102,850 20,517 Conversion of Class C to Class A common shares outstanding 20,517 — — 20,517 — — Conversion of Class B to Class A common shares outstanding 71,925 — — 102,850 — — Weighted-average effect of dilutive securities: Stock options and employee stock purchase plan 9,879 8,390 — — — — ZSUs 16,935 — — — — — Performance-based ZSUs 1,284 — — — — — Weighted-average common shares outstanding – diluted 897,165 80,315 20,517 878,827 102,850 20,517 Net income (loss) per share attributable to common stockholders – diluted $ 0.03 $ 0.03 $ 0.03 $ (0.12 ) $ (0.12 ) $ (0.12 ) The following weighted-average employee equity awards were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive for the periods presented (in thousands): Year Ended December 31, 2018 2017 2016 Stock options and employee stock purchase plan 6,193 17,331 28,380 Restricted shares — 349 3,899 ZSUs 8,071 5,087 61,183 Total 14,264 22,767 93,462 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases | 15. Leases Rental Income The Company owns the building where its San Francisco headquarters is located and leases available office space to other tenants. One tenant will occupy approximately 43% of the building with a lease term concluding in February 2027. The original agreement provides for total minimum rental payments of $167.3 million with escalating rent payments and various lease incentives to be straight-lined over the lease term. In February 2019, the original agreement was amended to provide additional space to the tenant, resulting in an additional $5.1 million of minimum rental payments to be received over the lease term and an additional $0.8 million lease incentive obligation for the Company related to tenant improvements. The monthly rental income, net of the lease incentives and amortization of the lease origination costs, is recorded within other income and expense, net in the consolidated statement of operations. As of December 31, 2018, the Company has a current lease incentive obligation of $24.9 million related to tenant improvements for this lease. Further, in October 2018, the Company entered into a lease agreement to provide approximately 17% of its San Francisco headquarters to a tenant beginning in April 2019 with a lease term concluding in August 2031. The agreement provides for total office space and parking minimum rental payments of $145.8 million with escalating rent payments and various lease incentives, including tenant improvement allowances of $2.4 million. As of December 31, 2018, cash to be received from future minimum rentals for the noncancelable lease term are as follows (in thousands): Year ending December 31: 2019 $ 16,437 2020 24,706 2021 30,934 2022 31,863 2023 32,819 Thereafter 169,869 Total $ 306,628 The Company has other lease arrangements for its owned corporate headquarters, however, the amounts are not material to the consolidated financial statements. Lease Commitments We have entered into operating leases for primarily office facilities. As of December 31, 2018, future minimum lease payments related to the Company’s leases are as follows (in thousands): Year ending December 31: 2019 $ 8,974 2020 8,782 2021 7,384 2022 3,611 2023 2,215 Thereafter 185 Total $ 31,151 Rent expense on operating leases for facilities for 2018, 2017 and 2016 totaled $5.5 million, $5.7 million and $5.3 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies The amounts represented in the tables below reflect our minimum cash obligations for the respective calendar years based on contractual terms, but not necessarily the periods in which these costs will be expensed in the Company’s consolidated statement of operations. Licensor and Marketing Commitments We have entered into several contracts with licensors that contain minimum contractual and marketing commitments that may not be dependent on any deliverables. As of December 31, 2018, future minimum contractual royalty payments due to licensors and marketing commitments for the licensed products are as follows (in thousands): Year ending December 31: 2019 $ 16,356 2020 42,369 Thereafter — Total $ 58,725 Other Purchase Commitments We have entered into several contracts primarily for hosting of data systems and other services. As of December 31, 2018, future minimum purchase commitments that have initial or remaining non-cancelable terms are as follows (in thousands): Year ending December 31: 2019 $ 23,304 2020 19,331 2021 8,861 Thereafter — Total $ 51,496 Excluded from tables above is our uncertain income tax position liability of $10.1 million, which includes interest and penalties, as the Company cannot make a reasonably reliable estimate of the period of cash settlement. Legal Matters The Company is involved in legal and regulatory proceedings on an ongoing basis. Some of these proceedings are in early stages and may seek an indeterminate amount of damages. If the Company believes that a loss arising from such matters is probable and can be reasonably estimated, the Company accrues the estimated liability in its financial statements. If only a range of estimated losses can be determined, the Company accrues an amount within the range that, in its judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, the Company accrues the low end of the range. For proceedings in which an unfavorable outcome is reasonably possible but not probable and an estimate of the loss or range of losses arising from the proceeding can be made, the Company discloses such an estimate, if material. If such a loss or range of losses is not reasonably estimable, the Company discloses that fact. In assessing the materiality of a proceeding, the Company evaluates, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs that may require changes to business practices in a manner that could have a material adverse impact on the Company’s business. Derivative Litigation Since August 3, 2012, eight Beginning on August 3, 2012, three of the actions were filed in San Francisco County Superior Court. On October 2, 2012, the court consolidated those three actions as In re Zynga Shareholder Derivative Litigation On April 24, 2015, the court endorsed a stipulation among the parties staying the action until the Delaware Chancery Court ruled on the defendants’ motion to stay or dismiss in the action described below. On May 2, 2016, the court endorsed a stipulation among the parties staying the action until final resolution of plaintiff’s appeal in the Delaware derivative action that is discussed in further detail below. At a status conference on March 8, 2017, the court stayed the action, in light of the Company’s formation of a special litigation committee discussed below. At a status conference on September 29, 2017, the court extended the stay in the action until April 9, 2018. On April 20, 2018, the Special Litigation Committee (discussed below), acting on the Company’s behalf, filed a motion to dismiss the action on grounds that the appropriate forum for resolution of the action is the Delaware Court of Chancery. On May 25, 2018, plaintiffs’ counsel requested, and the court granted, a voluntary dismissal of the action in its entirety. This action has now been dismissed. Beginning on August 16, 2012, four stockholder derivative actions were filed in the U.S. District Court for the Northern District of California. On December 3, 2012, the court consolidated these four actions as In re Zynga Inc. Derivative Litigation On April 4, 2014, a derivative action was filed in the Court of Chancery of the State of Delaware captioned Sandys v. Pincus, et al. . On December 9, 2014, the defendants filed a motion to stay or dismiss the action. The court held a hearing on defendants’ motion on November 17, 2015, and on February 29, 2016, the court granted the Company’s motion to dismiss. On March 29, 2016, plaintiff filed a notice of appeal of the court’s order dismissing the action. On December 5, 2016, the Delaware Supreme Court reversed the Court of Chancery’s dismissal and remanded the case for further proceedings. On June 7, 2017, the court endorsed a stipulation among the parties staying the action through July 31, 2017, in light of the Company’s formation of a Special Litigation Committee, as noted below. On July 18, 2017, the court endorsed a stipulation among the parties continuing the stay in the action through September 7, 2017. On September 11, 2017, the court endorsed a stipulation among the parties continuing the stay in the action through October 31, 2017. Subsequently, on January 5, 2018, the Special Litigation Committee, acting on behalf of the Company, filed a supplemental motion to stay the action until February 20, 2018, to allow the parties to engage in settlement negotiation. On February 3, 2017, On March 1, 2018, the Special Litigation Committee (on behalf of the Company) and the Sandys In response to the filing of the stipulation of settlement, the plaintiff requested discovery relating to the settlement, and following negotiations over scope of the discovery, the Special Litigation Committee responded with written and oral discovery. Following the close of settlement-related discovery in late October 2018, plaintiff informed the parties that he will endorse the stipulated and proposed settlement as a reasonable exercise of the Special Litigation Committee’s business judgment. Accordingly, the settling parties filed a revised stipulated proposed scheduling order that the court signed and entered on October 30, 2018. The terms of that scheduling order require Zynga to provide shareholder notice of the settlement within 10 business days of the scheduling order’s entry and establish a briefing schedule and a date of January 17, 2019 for a hearing regarding final court approval of the settlement and plaintiff’s application for a related fee and expense award. Following satisfaction of all aspects of the scheduling order, and the lack of any objection by any shareholder, the court held the final approval hearing on January 18, 2019. At the hearing, the court determined the proposed settlement to be fair, adequate, and reasonable, and entered an order approving the $12.0 million settlement and dismissing the underlying action with prejudice. The court also approved a fee award to plaintiff’s counsel in the amount of $2.3 million. The Company has received the $12.0 million settlement proceeds, and has distributed the fee award to plaintiff’s counsel from those proceeds, resulting in a net settlement amount of $9.7 million retained by the Company. Other The Company is, at various times, also party to various other legal proceedings and claims not previously discussed which arise in the ordinary course of business. In addition, the Company may receive notifications alleging infringement of patent or other intellectual property rights. Adverse results in any such litigation, legal proceedings or claims may include awards of substantial monetary damages, expensive legal fees, costly royalty or licensing agreements, or orders preventing us from offering certain games, features, or services, and may also result in changes in the Company’s business practices, which could result in additional costs or a loss of revenue and could otherwise harm the Company’s business. Although the results of such litigation cannot be predicted with certainty, the Company believes that the amount or range of reasonably possible losses related to such pending or threatened litigation will not have a material adverse effect on its business, operating results, cash flows, or financial condition should such litigation be resolved unfavorably. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events On December 20, 2018, the Company executed a Share Sale and Purchase Agreement (the “Agreement”) with the shareholders and option holders of Small Giant Games Oy (“Small Giant”), a Finnish company, pursuant to which, effective January 1, 2019, Zynga (i) acquired 80% of all issued and outstanding share capital (including all rights to acquire share capital) of Small Giant in exchange for consideration of $594.5 million of which (a) $333.6 million was paid in cash, (b) $30.0 million was deposited into an escrow account for a period of 18 months as security for general representations and warranties and (c) the remaining $230.9 million was satisfied by the issue of 63,794,746 shares of Zynga Class A common stock, based on the average closing price of Zynga’s Class A common stock during the 30 trading days immediately preceding the date of the Agreement, and (ii) will acquire the remaining 20% of the Small Giant shares ratably for additional cash consideration during each of the three years following the closing (the “Step-In Period”), payable annually based upon the achievement of specified profitability metrics by Small Giant, with no maximum limit as to the cash consideration achievable. Following the end of the Step-In Period, Small Giant will be a direct, wholly-owned subsidiary of Zynga. Our interest in Small Giant will be consolidated into our financial information beginning in 2019. All of the common stock issued in connection with the acquisition were in a transaction exempt from registration requirements of the 1933 Act. |
Financial Statement Schedules -
Financial Statement Schedules - Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Valuation And Qualifying Accounts [Abstract] | |
Financial Statement Schedules - Schedule II - Valuation and Qualifying Accounts | 2. Financial Statements Schedule: Schedule II: Valuation and Qualifying Accounts (in thousands) Allowance for Doubtful Accounts and Reserve for Uncollectible Advances Balance at Beginning of Year Charges to Expense Write-Offs, Net of Recoveries Balance at End of Year Year Ended December 31, 2018 $ — $ 3,215 $ (562 ) $ 2,653 Year Ended December 31, 2017 $ — $ — $ — $ — Year Ended December 31, 2016 $ — $ — $ — $ — All other schedules have been omitted because they are not required, not applicable, or the required information is otherwise included. |
Overview and Summary of Signi_2
Overview and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying consolidated financial statements are presented in accordance with United States generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the operations of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in the consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and notes thereto. Significant estimates and assumptions reflected in the financial statements include, but are not limited to, the estimated average playing period of payers that we use for revenue recognition, useful lives of property and equipment and intangible assets, accrued liabilities, income taxes, the fair value of assets and liabilities acquired through business combinations, contingent consideration obligations, stock-based compensation expense and the evaluation of recoverability of goodwill, intangible assets and long-lived assets. Actual results could differ materially from those estimates. During the year ended December 31, 2018, we recognized $0.9 million of online game revenue and income from operations from games that have been discontinued as there is no further performance obligation, which did not impact our reported earnings per share. Further, there were no changes in our estimated average playing period of payers that required adjusting the recognition period of deferred revenue generated in prior periods for the year ended December 31, 2018. During the year ended December 31, 2017, we recognized $1.3 million of online game revenue and income from operations from changes in our estimated average playing period of payers, which was the result of adjusting the remaining recognition period of deferred revenue generated in prior periods at the time of a change in estimate. This change in estimate did not impact our reported earnings per share. Further, there were no discontinued games that required adjusting the recognition period of deferred revenue generated in prior periods for the year ended December 31, 2017. During the year ended December 31, 2016, changes in our estimated average playing period of payers resulted in a decrease in online game revenue and income from operations of $0.1 million. Further, we recognized $4.0 million of online game revenue and income from operations from games that had been discontinued. These changes in estimates did not impact our reported earnings per share. |
Segments | Segments We have one operating and reportable segment, which is at the consolidated company level. The Chief Operating Decision Maker (“CODM”), our Chief Executive Officer, manages our operations on a consolidated basis for purposes of assessing performance and allocating resources. |
Revenue Recognition | Revenue Recognition The revenue recognition accounting policy described below relates to revenue transactions from January 1, 2018 and onward, which are accounted for in accordance with Accounting Standards Codification Topic 606 – Revenue from Contracts with Customers We primarily derive revenue from the sale of virtual items associated with our online games and the sale of advertising. Online Game. We operate our games as live services that allow players to play for free. Within these games however, players can purchase virtual currency to obtain virtual goods or virtual goods directly (together, defined as “virtual items”) to enhance their game-playing experience. Our identified performance obligation is to display the virtual items within the game over the estimated life of the paying player or until it is consumed in game play based upon the nature of the virtual item. Payment is required at time of purchase and the purchase price is a fixed amount. Players can purchase our virtual items through various widely accepted payment methods offered in the games, including Apple iTunes accounts, Google Play accounts, Facebook local currency payments, PayPal and credit cards. Payments from players for virtual items are non-refundable and relate to non-cancellable contracts that specify our obligations. Such payments are initially recorded to deferred revenue. For revenue earned through mobile platforms, the transaction price is equal to the gross amount we request to be charged to our player because we are the principal in the transaction. The related platform and payment processing fees are recorded as cost of revenue in the period incurred. For revenue earned on our web based games through Facebook, our players utilize Facebook’s local currency-based payments program to purchase virtual items in our games. For all payment transactions on the Facebook platform, Facebook remits to us 70% of the price we request to be charged to the player for each transaction, which represents the transaction price. Despite being the principal in the transaction, we recognize revenue net of the amounts retained by Facebook for platform and payment processing fees because Facebook may choose to alter our requested price, for example by offering a discount or other incentives to players playing on their platform, and we do not receive information from Facebook indicating the amount of such discounts or incentives or the actual amount paid by our players. Accordingly, we are unable to determine the gross amount paid by our players on the Facebook platform. The satisfaction of our performance obligation is dependent on the nature of the virtual item purchased and as a result, we categorize our virtual items as either consumable or durable. • Consumable virtual items represent items that can be consumed by a specific player action. Common characteristics of consumable virtual items may include items that are no longer displayed on the player’s game board after a short period of time, do not provide the player any continuing benefit following consumption, or often times enable a player to perform an in-game action immediately (e.g. chips in Zynga Poker • Durable virtual items represent items that are accessible to the player over an extended period of time (e.g. animals in Farmville 2 • If we do not have the ability to differentiate between revenue attributable to consumable virtual items versus durable virtual items for a specific game, we recognize revenue ratably over the estimated average playing period of payers for the applicable game. Historically, we have had sufficient data to separately account for consumable and durable virtual items for substantially all of our web games. However, for our standalone mobile games, we do not have the requisite data to separately account for consumable and durable virtual items and therefore recognize mobile revenue ratably over the estimated average playing period of payers. We expect that in future periods, there will be changes in the mix of consumable and durable virtual items offered and sold, reduced virtual item sales in some existing games, changes in estimates of the average playing period of payers and/or changes in our ability to make such estimates. When such changes occur, and in particular if more of our revenue in any period is derived from durable virtual items or the estimated average playing period of payers increases on average, the amount of revenue that we recognize in a current or future period may be reduced, perhaps significantly. Conversely, if the estimated average playing period of payers decreases on average, the amount of revenue that we recognize in a current or future period may be accelerated, perhaps significantly. On a quarterly basis, we determine the estimated average playing period of payers by game beginning at the time of a payer’s first purchase in the respective game and ending on a date when that paying player is deemed to be no longer playing. To determine when paying players are no longer playing a given game, we analyze monthly cohorts of payers who made their first in-game payment between six and 18 months prior to the beginning of each quarter and determine whether each payer within the cohort is an active or inactive player as of the date of our analysis. To determine which payers are inactive, we analyze the dates that each payer last logged into that game. We determine a payer to be inactive once they have reached a period of inactivity for which it is probable that they will not return to a specific game. For the payers deemed inactive as of our analysis date, we analyze the dates they last logged into that game to determine the rate at which inactive payers stopped playing. Based on these dates, we then project a date at which all payers for each monthly cohort are expected to cease playing our games. We then average the time periods from first purchase date and the date the last payer is expected to cease playing the game for each of the monthly cohorts to determine the total playing period of payers for that game. To determine the estimated average playing period of payers, we then divide this total period by two. The use of this “average” approach is supported by our observations that payers typically become inactive at a relatively consistent rate for our games. If future data indicates payers do not become inactive at a relatively consistent rate, we will modify our calculations accordingly. When a new game is launched and only a limited period of payer data is available for our analysis, then we also consider other factors to determine the estimated average playing period of payers, such as the estimated average playing period of payers for other recently launched games with similar characteristics. Advertising. We have contractual relationships with advertising networks, agencies, advertising brokers and directly with advertisers for advertisements in our games. For all advertising arrangements, we are the principal and our performance obligation is to provide the inventory for advertisements to be displayed in our games. For contracts made directly with advertisers, we are also obligated to serve the advertisements in our games. However, for those direct advertising arrangements, providing the advertising inventory and serving the advertisement is considered a single performance obligation, as the advertiser cannot benefit from the advertising space without its advertisements being displayed. The pricing and terms for all our advertising arrangements are governed by either a master contract or insertion order and generally stipulate payment terms as a specific number of days subsequent to the end of the month, generally ranging from 30 to 60 days. The transaction price in advertising arrangements is generally the product of the number of advertising units delivered (e.g., impressions, offers completed, videos viewed, etc.) and the contractually agreed upon price per advertising unit. Further, for advertising transactions not placed directly with the advertiser, the contractually agreed upon price per advertising unit is generally based on our revenue share stated in the contract. The number of advertising units delivered is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period. For a limited number of advertising network arrangements, the transaction price is determined based on a volume-tiered pricing structure, whereby the price per advertising unit in a given month is determined by the number of impressions delivered in that month. However, the number of impressions delivered is resolved at the end of each month, therefore, eliminating any uncertainty with respect to the price per advertising unit for each reporting period. For in-game display ads, in-game offers, engagement advertisements and other advertisements, our performance obligation is satisfied over the life of contract (i.e., over time), with revenue being recognized as advertising units are delivered. For in-game sponsorships with branded virtual items, revenue is initially recorded to deferred revenue and then recognized ratably over the estimated life of the branded virtual item, similar to online game revenue, or over the term of the advertising arrangement, depending on the nature of the agreement. Arrangements with Multiple Performance Obligations. For arrangements with multiple performance obligations, we allocate the transaction price to each performance obligation in an amount that depicts the amount of consideration to which we expect to be entitled in exchange for satisfying each performance obligation, which is based on the standalone selling price. The standalone selling price represents the observable price which we would sell the advertising placement separately in a similar circumstance, to a similar customer. Taxes Collected from Customers. We present taxes collected from customers and remitted to governmental authorities on a net basis within our consolidated statement of operations. The revenue recognition accounting policy described below relates to revenue transactions prior to January 1, 2018, which are accounted for in accordance with Accounting Standards Codification Topic 605 – Revenue Recognition. We primarily derive revenue from the sale of virtual items associated with our online games and the sale of advertising. Online Game. We operate our games as live services that allow players to play for free. Within these games, however, players can purchase virtual currency to obtain virtual goods or virtual goods directly (together, defined as “virtual items”) to enhance their game-playing experience. Players can purchase our virtual items through various widely accepted payment methods offered in the games, including Apple iTunes accounts, Google Play accounts, Facebook local currency payments, PayPal and credit cards. Advance payments from customers for virtual items that are non-refundable and relate to non-cancellable contracts that specify our obligations are recorded to deferred revenue. All other advance payments that do not meet these criteria are recorded as customer deposits. For revenue earned through mobile platforms, we recognize online game revenue based on the gross amount paid by the player because we are the principal in the transaction. The related platform and payment processing fees are recorded as cost of revenue in the period incurred. For revenue earned on our web based games through Facebook, our players utilize Facebook’s local currency-based payments program to purchase virtual items in our games. For all payment transactions on the Facebook platform, Facebook remits to us 70% of the price we request to be charged to the player for each transaction. We recognize revenue net of the amounts retained by Facebook because Facebook may choose to alter our recommended price, for example by offering a discount or other incentives to players playing on their platform. Additionally, we do not receive information from Facebook indicating the amount of such discounts or incentives or the actual amount paid by our players. Accordingly, we are unable to determine the gross amount paid by our players on the Facebook platform. We recognize revenue when all of the following conditions are satisfied: there is persuasive evidence of an arrangement; the service has been provided to the player; the collection of our fees is reasonably assured; and the amount of fees to be paid by the player is fixed or determinable. For purposes of determining when the service has been provided to the player, we have determined that an implied obligation exists to the paying player to continue displaying the purchased virtual items within the online game over their estimated life or until they are consumed. Accordingly, we categorize our virtual items as either consumable or durable. Consumable virtual items represent items that can be consumed by a specific player action. Common characteristics of consumable virtual items may include items that are no longer displayed on the player’s game board after a short period of time, do not provide the player any continuing benefit following consumption, or often times enable a player to perform an in-game action immediately. For the sale of consumable virtual items, we recognize revenue as the items are consumed, which approximates one month. Durable virtual items represent items that are accessible to the player over an extended period of time. We recognize revenue from the sale of durable virtual items ratably over the estimated average playing period of payers for the applicable game, which represents our best estimate of the average life of the durable virtual item. If we do not have the ability to differentiate between revenue attributable to consumable virtual items from durable virtual items for a specific game, we recognize revenue ratably over the estimated average playing period of payers for the applicable game. We have had sufficient data to separately account for consumable and durable virtual items for substantially all of our web games. However, for our standalone mobile games, we do not have the requisite data to separately account for consumable and durable virtual items and therefore recognize revenue ratably over the estimated average playing period of payers. We expect that in future periods there will be changes in the mix of durable and consumable virtual items offered and sold, reduced virtual item sales in some existing games, changes in estimates of the average playing period of payers and/or changes in our ability to make such estimates. When such changes occur, and in particular if more of our revenue in any period is derived from durable virtual items or the estimated average playing period of payers increases on average, the amount of revenue that we recognize in a current or future period may be reduced, perhaps significantly. Conversely, if the estimated average playing period of payers decreases on average, the amount of revenue that we recognize in a current or future period may be accelerated, perhaps significantly. On a quarterly basis, we determine the estimated average playing period of payers by game beginning at the time of a payer’s first purchase in the respective game and ending on a date when that paying player is deemed to be no longer playing. To determine when paying players are no longer playing a given game, we analyze monthly cohorts of payers who made their first in-game payment between six and 18 months prior to the beginning of each quarter and determine whether each payer within the cohort is an active or inactive player as of the date of our analysis. To determine which payers are inactive, we analyze the dates that each payer last logged into that game. We determine a payer to be inactive once they have reached a period of inactivity for which it is probable that they will not return to a specific game. For the payers deemed inactive as of our analysis date, we analyze the dates they last logged into that game to determine the rate at which inactive payers stopped playing. Based on these dates, we then project a date at which all payers for each monthly cohort are expected to cease playing our games. We then average the time periods from first purchase date and the date the last payer is expected to cease playing the game for each of the monthly cohorts to determine the total playing period of payers for that game. To determine the estimated average playing period of payers, we then divide this total period by two. The use of this “average” approach is supported by our observations that payers typically become inactive at a relatively consistent rate for our games. If future data indicates payers do not become inactive at a relatively consistent rate, we will modify our calculations accordingly. When a new game is launched and only a limited period of payer data is available for our analysis, then we also consider other factors to determine the estimated average playing period of payers, such as the estimated average playing period of payers for other recently launched games with similar characteristics. Advertising. We have contractual relationships with advertising networks, agencies, advertising brokers and directly with advertisers for advertisements within our games. We generally report our advertising revenue net of amounts retained by advertising networks, agencies, and brokers because we are not the principal for the advertisement transaction. However, certain advertisement placements that are directly between us and the end advertiser are recognized gross equal to the price paid to the Company by the end advertiser since we are the principal in the direct advertising arrangement. We recognize advertising revenue for engagement advertisements and offers, mobile advertisements, branded virtual items and sponsorships and other advertisements as advertisements are delivered to customers as long as evidence of the arrangement exists, the price is fixed or determinable, and collectability as reasonably assured. Price is determined to be fixed or determinable when there is a fixed price included a master contract, insertion order, or a third party statement of advertising activity. For engagement advertisements and offers, mobile advertisements, and other advertisements, delivery occurs when the advertisement has been displayed or the offer has been completed by the customer, as evidenced by third party verification reports supporting the number of advertisements displayed or offers completed. Certain branded in-game sponsorships that involve virtual items are deferred and recognized over the estimated life of the branded virtual good or as consumed, similar to online game revenue. For these branded virtual items and sponsorships, we determine the delivery criteria has been met based on delivery reporting received from third parties. Multiple-Element Arrangements. We allocate arrangement consideration in multiple-deliverable revenue arrangements at the inception of an arrangement to all deliverables based on the relative selling price method, generally based on our best estimate of selling price. Taxes Collected from Customers. We present taxes collected from customers and remitted to governmental authorities on a net basis within our consolidated statement of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, money market funds and corporate debt with maturities of 90 days or less from the date of purchase. |
Short-Term Investments | Short-Term Investments Short-term investments consist of corporate debt securities. The fair value of short-term investments is determined as the exit price in the principal market in which we would transact. Based on our intentions regarding our short-term investments, all short-term investments are classified as available-for-sale and are reported at fair value with unrealized gains and losses recorded as a separate component of other comprehensive income, net of income taxes. Realized gains and losses are determined using the specific-identification method and are reflected as a component of other income (expense), net in the consolidated statements of operations. We assess whether an other-than-temporary loss on our investments has occurred due to declines in fair value or other market conditions. When we determine that a decline in fair value is other-than-temporary, the cost basis of the individual security is written down to the fair value with the amount of the write-down recorded as a realized loss within other income (expense), net. The new cost basis will not be adjusted for subsequent recoveries in fair value. Determination of whether declines in fair value are other than temporary requires judgment regarding the amount and timing of recovery. No such impairments of short-term investments have been recorded in any of the periods presented. |
Restricted Cash | Restricted Cash Restricted cash consists of collateral for royalty agreements and funds held in escrow in accordance with the terms of our business acquisition agreements. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the original invoiced amount less an allowance for any potential uncollectible amounts. In evaluating our ability to collect outstanding receivable balances, we consider many factors, including the age of the balance, the customer’s payment history and current creditworthiness and current economic conditions that may affect our customers’ ability to pay. Bad debts are written off after all collection efforts have ceased. We do not require collateral from our customers. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are recorded at historical cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the improvements or the lease term. The estimated useful lives of property and equipment are as follows: Property and Equipment Useful Life Computer equipment 3 years Software 2 to 3 years Building and building improvements 7 to 39 years Furniture and fixtures 2 years Leasehold improvements Shorter of useful life (generally up to 7 years) or remaining lease term |
Business Combinations | Business Combinations In accounting for acquisitions through which a set of assets and activities are transferred to the Company, we perform an initial test to determine whether substantially all of the fair value of the gross assets transferred are concentrated in a single identifiable asset or a group of similar identifiable assets, such that the acquisition would not represent a business. If that test does not suggest that the set of assets and activities are not a business, we then perform a second test to evaluate whether the assets and activities transferred include inputs and substantive processes that together, significantly contribute to the ability to create outputs, which would constitute a business. If the result of the second test suggests that the acquired assets and activities constitute a business, we account for the transaction as a business combination. For our business combinations, we allocate the purchase price of the acquisition, which includes the estimated acquisition date fair value of contingent consideration (if applicable), to the tangible assets, liabilities and identifiable intangible assets acquired based on their estimated fair values at the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Determining the fair value of such items requires judgment, including estimating future cash flows or the cost to recreate an acquired asset. If actual results are lower than initial estimates, we could be required to record impairment charges in the future. Acquired intangible assets with definite lives are amortized over their estimated useful lives generally on a straight-line basis, unless evidence indicates a more appropriate method. Intangible assets with indefinite lives are not amortized but rather tested for impairment annually, or more frequently if circumstances indicate an impairment may exist. Acquisition-related expenses are expensed as incurred. During the one-year period beginning with the acquisition date, we may record certain purchase accounting adjustments related to the fair value of assets acquired and liabilities assumed against goodwill. After the final determination of the fair value of assets acquired or liabilities assumed, any subsequent adjustments are recorded to our consolidated statements of operations. The fair value of contingent consideration liabilities assumed from an acquisition are remeasured each reporting period and the changes in the fair value, if any, is recorded within operating expenses in our consolidated statement of operations each reporting period. |
Software Development Costs | Software Development Costs We review internal use software development costs associated with new games or updates to existing games on a quarterly basis to determine if the costs qualify for capitalization. Our studio teams follow an agile development process, whereas the preliminary project stage remains ongoing until just prior to worldwide launch, at which time final feature selection occurs. As such, the development costs are expensed as incurred to research and development in our consolidated statement of operations. We did not capitalize any software development costs in 2018, 2017 or 2016. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Goodwill and indefinite-lived intangible assets are evaluated annually for impairment, or more frequently if circumstances exist that indicate that impairment may exist. When conducting our annual goodwill impairment assessment, we perform a quantitative evaluation of whether goodwill is impaired by comparing the fair value of our single reporting unit to its carrying value. If the carrying value of the reporting unit exceeds its fair value, then we record the amount by which the carrying value exceeds its fair value, if any, as impairment to goodwill. For our annual goodwill impairment analysis performed in the fourth quarter of 2018, our estimates of fair value were based on the market approach, which estimated the fair value of our reporting unit based on the Company’s market capitalization at the annual testing date. The result of the quantitative evaluation indicated that the estimated fair value of the reporting unit exceeded its carrying value. Accordingly, we concluded goodwill was not impaired. At least annually, we test recoverability of indefinite-lived intangible assets using a qualitative approach that considers whether it is more likely than not that the fair value of the intangible asset exceeds its carrying value. If qualitative factors indicate that it is more likely than not that the indefinite-lived intangible asset is impaired, a quantitative analysis is performed and the amount of any impairment loss recorded, if any, is measured as the difference between the carrying value and the fair value of the impaired intangible asset. We concluded that indefinite-lived intangible assets were not impaired as of December 31, 2018. |
Intangible Assets | Intangible Assets Intangible assets generally consist of definite-lived intangibles assets acquired from a prior business combination and are carried at historical cost less accumulated amortization. Amortization is generally recorded on a straight-lined basis, unless another method is deemed more appropriate, over the estimated useful lives of the assets, generally 12 to 84 months. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, including other intangible assets not considered indefinite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. If such circumstances are present, we assess the recoverability of the long-lived assets by comparing the carrying value to the undiscounted future cash flows associated with the related assets. If the future net undiscounted cash flows are less than the carrying value of the assets, the assets are considered impaired and an expense, equal to the amount required to reduce the carrying value of the assets to the estimated fair value, is recorded as an impairment of intangible assets in the consolidated statements of operations. Significant judgment is required to estimate the amount and timing of future cash flows and the relative risk of achieving those cash flows. Assumptions and estimates about future values and remaining useful lives are complex and often subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in our business strategy and our internal forecasts. For example, if our future operating results do not meet current forecasts, we may be required to record future impairment charges for acquired intangible assets. Impairment charges could materially decrease our future net income and result in lower asset values on our balance sheet. In the third quarter of 2016, we recorded an $18.2 million and $2.5 million impairment charge associated with developed technology previously acquired from Rising Tide and Zindagi, respectively. There were no impairment charges recorded during 2018 or 2017. |
Licenses and Royalties | Licenses and Royalties We obtain licenses from third parties for use of their brands, properties and other licensed content in our games (e.g., Hit It Rich! Slots CSR2 against future royalty obligations that would otherwise become payable. Each quarter, we evaluate the recoverability of our prepaid royalties as well as any contractual commitments |
Stock-Based Compensation Expense | Stock-Based Compensation Expense We recognize stock-based compensation expense for restricted stock units (“ZSUs”) based on grant date fair value on a straight-line basis over the requisite service period for the entire award. For certain performance based ZSUs, we recognize the stock-based compensation expense based upon the grant date fair value on an accelerated attribution basis over the requisite service period of the award. We estimate the fair value of stock options using the Black-Scholes option-pricing model. This model requires the use of the following assumptions: expected volatility of our Class A common stock, which is based on our own calculated historical rate; expected life of the option award, which we elected to calculate using the simplified method; expected dividend yield, which is 0%, as we have not paid and do not have any plans to pay dividends on our common stock; and the risk-free interest rate, which is based on the U.S. Treasury rate in effect at the time of grant with maturities equal to the stock option award’s expected life. If any of the assumptions used in the Black-Scholes model changes significantly, stock-based compensation expense for future awards may differ materially compared to awards previously granted previously. We record stock-based compensation expense for stock options on a straight-line basis over the vesting term. Stock-based compensation expense is recorded net of forfeitures as they are occur. |
Income Taxes | Income Taxes We account for income taxes using an asset and liability approach, which requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns. The measurement of current and deferred tax assets and liabilities is based on provisions of enacted tax laws at the end of the reporting period; the effect of future changes in tax laws or rates are not anticipated. If necessary, the measurement of deferred tax assets is reduced by the amount of any tax benefits that are not expected to be realized based on all available positive and negative evidence including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies and results of recent operations. In evaluating the objective evidence that the results of recent operations provide, we generally consider the trailing three years of cumulative operating income (loss). The assumptions about future taxable income require the use of significant judgment and are consistent with the plans and estimates we are using to manage the underlying businesses. We account for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We recognize interest and penalties, if any, related to unrecognized tax benefits in the provision for income tax. Refer to Note 8 — “Income Taxes” below for discussion on the impact of the 2017 Tax Cuts and Jobs Act (“2017 Tax Act”). |
Foreign Currency Transactions | Foreign Currency Transactions Generally, the functional currency of our international subsidiaries is the U.S. dollar or the local currency that the international subsidiary operates in. We translate the financial statements of these subsidiaries to U.S. dollars using the prevailing balance sheet date exchange rate for assets and liabilities, and average exchange rates during the period for revenue and costs and expenses. We record translation gains and losses in accumulated other comprehensive income (loss) as a component of stockholders’ equity. We reflect foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency, which includes gains and losses from the remeasurement of assets and liabilities, as a component of other income (expense), net. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers Financial instruments, which potentially expose us to concentrations of credit risk, consist primarily of cash and cash equivalents, short-term investments, accounts receivable and lease receivables. Substantially all of our cash and cash equivalents are maintained with three financial institutions with high credit standings. We perform periodic evaluations of the relative credit standing of these institutions. Accounts receivable and lease receivables are unsecured and represent amounts due to us based on contractual obligations where an executed contract or click-through agreement exists. In cases where we are aware of circumstances that may impair a specific customer or tenant’s ability to meet its financial obligations, we record a specific allowance as a reduction to the accounts or lease receivable balance to reduce the receivable to its net realizable value. Google, Apple and Facebook are significant distribution, marketing, promotion and payment platforms for our games. A significant portion of our 2018, 2017 and 2016 revenue was generated from players who accessed our games through these platforms or were served advertisements in our games on behalf of advertisers. As of December 31, 2018 and December 31, 2017, 27% and 19% of our accounts receivable, net, respectively, were amounts owed to us by Google, 26% and 34% of our accounts receivable, net, respectively, were amounts owed to us by Apple and 15% and 10% of our accounts receivable, net, respectively, were amounts owed to us by Facebook. |
Advertising Expense | Advertising Expense Costs for advertising are expensed as incurred. Advertising costs, which are included in sales and marketing expense, primarily consisting of player acquisition costs, totaled $157.7 million, $147.2 million and $132.5 million for 2018, 2017 and 2016 respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Issued But Not Yet Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842),” “Leases (Topic 842) – Targeted Improvements,” As part of the adoption of the new lease standard, the standard allows a number of practical expedients and exemptions. At transition the Company will elect the following: • The package of practical expedients, which allows us to carryforward our historical lease classification, assessment on whether a contract is or contains a lease and initial direct costs for any leases that exist prior to adoption of the new standard. • The practical expedient to not separate non-lease components from the related lease components, which is expected to further increase reported assets and liabilities. • The exemption to not apply the balance sheet recognition requirements for leases with a lease term of 12 months or less and instead, expense those costs on a straight-line basis over the lease term, or in the period in which the obligation is incurred, if such costs are variable. The ASU also amends the provisions of ASC 420 – Exit or Disposal Obligations ASC 360 Property, Plant, and Equipment We are finalizing our analysis of the transition adjustment, including the determination of the rates used to discount the individual lease liabilities. We are, however, continuing to assess the full impact on our consolidated financial statements, which includes changes to our processes and controls and evaluation of non-real estate arrangements entered into in the second half of 2018. “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” ASC Topic 350-40, Internal-Use Software Issued And Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on specific topics related to how certain cash receipts and cash payments are classified in the statement of cash flows. Later, in November 2016, the FASB issued ASU 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash, ” which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Our restricted cash primarily consists of funds held in escrow in accordance with the terms of our business acquisition agreements. The restrictions release based upon the satisfaction of required milestones or lapse of defined time periods. Both standards are effective for interim and annual reporting periods beginning after December 15, 2017. On January 1, 2018, we adopted both standards using the retrospective transition approach and there was no impact upon adoption of ASU 2016-15. As a result of adopting ASU 2016-18, the primary impact to the consolidated statement of cash flows relates to cash flows provided by (used in) investing and financing activities. Specifically, our business acquisitions typically involve restricted cash held in escrow at the date of acquisition which is later released. These transactions are now reflected in investing activities. Further, certain acquisition related contingent consideration payments involve restricted cash, the payment of which is reflected in financing activities. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 805) Clarifying the Definition of a Business,” |
Earnings Per Share | As noted previously, our founder, Mark Pincus, elected to convert certain outstanding shares of Class B common stock and all outstanding shares of Class C common stock controlled by Mr. Pincus and an affiliated investment entity into an equivalent number of shares of Class A common stock in May 2018. Following the conversion, no shares of Class B or Class C common stock are outstanding and accordingly, the Company calculated basic and dilutive net income (loss) per share under a single-class method for the current period. Prior to the conversion noted above, we computed net income (loss) per share of common stock using the two-class method required for participating securities and multiple classes of common stock. Prior to the date of the initial public offering, we considered all series of our convertible preferred stock to be participating securities due to their non-cumulative dividend rights. Additionally, we considered shares issued upon the early exercise of options subject to repurchase and unvested restricted shares to be participating securities, because the holders of such shares have non-forfeitable dividend rights in the event we declare a dividend for common shares. In accordance with the two-class method, net income allocated to these participating securities, which include participation rights in undistributed net income, is subtracted from net income (loss) to determine total net income (loss) to be allocated to common stockholders. Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding, including potential dilutive securities. In computing diluted net income (loss) per share, net income (loss) attributable to common shareholders is re-allocated to reflect the potential impact of dilutive securities, including stock options, unvested ZSUs, unvested performance-based ZSUs and ESPP withholdings. For periods in which we have generated a net loss or there is no income attributable to common stockholders, we do not include dilutive securities in our calculation of diluted net income (loss) per share, as the impact of these awards is anti-dilutive. |
Leases Income | The original agreement provides for total minimum rental payments of $167.3 million with escalating rent payments and various lease incentives to be straight-lined over the lease term. In February 2019, the original agreement was amended to provide additional space to the tenant, resulting in an additional $5.1 million of minimum rental payments to be received over the lease term and an additional $0.8 million lease incentive obligation for the Company related to tenant improvements. |
Legal Contingencies | The Company is involved in legal and regulatory proceedings on an ongoing basis. Some of these proceedings are in early stages and may seek an indeterminate amount of damages. If the Company believes that a loss arising from such matters is probable and can be reasonably estimated, the Company accrues the estimated liability in its financial statements. If only a range of estimated losses can be determined, the Company accrues an amount within the range that, in its judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, the Company accrues the low end of the range. For proceedings in which an unfavorable outcome is reasonably possible but not probable and an estimate of the loss or range of losses arising from the proceeding can be made, the Company discloses such an estimate, if material. If such a loss or range of losses is not reasonably estimable, the Company discloses that fact. In assessing the materiality of a proceeding, the Company evaluates, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs that may require changes to business practices in a manner that could have a material adverse impact on the Company’s business. |
Legal Expenses | Legal expenses are recognized as incurred. |
Overview and Summary of Signi_3
Overview and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and Equipment | The estimated useful lives of property and equipment are as follows: Property and Equipment Useful Life Computer equipment 3 years Software 2 to 3 years Building and building improvements 7 to 39 years Furniture and fixtures 2 years Leasehold improvements Shorter of useful life (generally up to 7 years) or remaining lease term |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |
Summary of Disaggregated Revenue | The following table presents our revenue disaggregated by platform (in thousands): Year Ended December 31, 2018 2017 (1) 2016 (1) Online game: Mobile $ 590,436 $ 564,629 $ 413,919 Web 80,441 100,964 133,372 Online game total $ 670,877 $ 665,593 $ 547,291 Advertising and other: Mobile 225,085 174,867 160,452 Web 9,001 14,961 30,637 Other 2,245 5,969 3,040 Advertising and other total $ 236,331 $ 195,797 $ 194,129 Total revenue $ 907,208 $ 861,390 $ 741,420 (1) Amounts have not been retrospectively adjusted to reflect the adoption of ASC Topic 606. The following table presents our revenue disaggregated based on the geographic location of our payers (in thousands): Year Ended December 31, 2018 2017 (1) 2016 (1) United States $ 593,973 $ 567,315 $ 507,473 All other countries ( 2) 313,235 294,075 233,947 Total revenue $ 907,208 $ 861,390 $ 741,420 (1) Amounts have not been retrospectively adjusted to reflect the adoption of ASC Topic 606. (2) No foreign country exceeded 10% of our total revenue for any periods presented. |
ASC Topic 606 [Member] | |
Disaggregation Of Revenue [Line Items] | |
Summary of Impact of Adoption of Accounting Standards | The impact of adopting ASC Topic 606 on our consolidated balance sheet as of December 31, 2018 was as follows (in thousands): As of December 31, 2018 Amounts as Reported Amounts without Adoption of ASC Topic 606 Increase (Decrease) from ASC Topic 606 Adoption Current liabilities: Deferred revenue $ 191,299 $ 202,238 $ (10,939 ) Total current liabilities 479,834 490,773 (10,939 ) Deferred revenue 1,586 1,013 573 Total liabilities 550,093 560,459 (10,366 ) Accumulated deficit (1,789,664 ) (1,800,030 ) 10,366 Total stockholders' equity 1,596,610 1,586,244 10,366 Total liabilities and stockholders' equity $ 2,146,703 $ 2,146,703 $ — As a result of adopting ASC Topic 606, deferred revenue as of December 31, 2018 decreased from certain advertising arrangements for which revenue would otherwise not be recognized until payment was certain under ASC Topic 605, partially offset by an increase to deferred revenue associated with the deferral of previously recognized revenue from the aforementioned symbolic license arrangement. The increase to stockholders’ equity as of December 31, 2018 from adopting ASC Topic 606 is the result of the net income impact discussed below and the $4.0 million transition adjustment recognized upon adoption of ASC Topic 606 on January 1, 2018. The impact of adopting ASC Topic 606 on our consolidated statement of operations for the year ended December 31, 2018 was as follows (in thousands): Year Ended December 31, 2018 Amounts as Reported Amounts without Adoption of ASC Topic 606 Increase (Decrease) from ASC Topic 606 Adoption Revenue: Advertising and other $ 236,331 $ 229,989 $ 6,342 Total revenue 907,208 900,866 6,342 Income (loss) from operations 6,762 420 6,342 Income (loss) before taxes 26,463 20,121 6,342 Net income (loss) $ 15,457 $ 9,115 $ 6,342 Net income (loss) per share attributable to common stockholders: Basic $ 0.02 $ 0.01 $ 0.01 Diluted $ 0.02 $ 0.01 $ 0.01 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Summary of Available-for-Sale Short-Term Investments Securities | The following tables summarize the amortized cost, gross unrealized gains and losses and fair value of our short-term investments as of December 31, 2018 and 2017 (in thousands): December 31, 2018 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Corporate debt securities $ 36,230 $ 2 $ — $ 36,232 Total $ 36,230 $ 2 $ — $ 36,232 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Corporate debt securities $ 308,684 $ — $ (178 ) 308,506 Total $ 308,684 $ — $ (178 ) $ 308,506 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets and Liabilities Measured on Recurring Basis | The composition of our financial assets and liabilities as of December 31, 2018 and 2017 among the three levels of the fair value hierarchy are as follows (in thousands): December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 565 $ — $ — $ 565 Corporate debt securities — 4,987 — 4,987 Short-term investments: Corporate debt securities — 36,232 — 36,232 Total financial assets $ 565 $ 41,219 $ — $ 41,784 Liabilities: Contingent consideration — — 49,000 49,000 December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 177,577 $ — $ — $ 177,577 Corporate debt securities — 44,923 — 44,923 Short-term investments: Corporate debt securities — 308,506 — 308,506 Total financial assets $ 177,577 $ 353,429 $ — $ 531,006 |
Fair Value Liabilities Measured on Recurring Basis | The following table presents the activity for the year ended December 31, 2018 related to our Level 3 liabilities (in thousands): Level 3 Liabilities: Total Contingent consideration obligation – December 31, 2017 $ — Additions 43,500 Fair value adjustments 5,500 Contingent consideration obligation – December 31, 2018 $ 49,000 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment, Net | Property and equipment, net consist of the following (in thousands): December 31, December 31, 2018 2017 Computer equipment $ 20,624 $ 21,583 Software 34,937 32,509 Land 89,130 89,130 Building and building improvements 203,873 199,070 Furniture and fixtures 10,321 10,376 Leasehold improvements 6,144 7,965 Total property and equipment, gross $ 365,029 $ 360,633 Less accumulated depreciation (98,472 ) (94,044 ) Total property and equipment, net $ 266,557 $ 266,589 |
Property and Equipment, Net | The following represents our property and equipment, net by location (in thousands): December 31, December 31, 2018 2017 United States $ 262,844 $ 263,037 All other countries 3,713 3,552 Total property and equipment, net $ 266,557 $ 266,589 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Gram Games [Member] | |
Schedule of Acquisition Price Allocation | The following table summarizes the acquisition date fair value of the tangible assets, liabilities assumed, intangible assets, contingent consideration and related goodwill acquired from Gram Games (in thousands): Total Cash $ 8,474 Accounts receivable, net 10,747 Prepaid expenses 279 Other current assets 937 Intangible assets, net: Developed technology, useful life of 5 years 43,000 Developed technology, useful life of 3 years 26,000 Trade names, useful life of 7 years 14,000 Trade names, useful life of 3 years 500 Goodwill 224,289 Property and equipment, net 898 Other non-current assets 329 Total assets acquired 329,453 Accounts payable (8,874 ) Income tax payable (502 ) Other current liabilities (5,164 ) Deferred tax liabilities, net (15,499 ) Total liabilities assumed (30,039 ) Total purchase price consideration $ 299,414 Non-current contingent consideration payable (43,500 ) Total cash consideration $ 255,914 |
Solitaire Mobile Gaming Applications [Member] | |
Schedule of Acquisition Price Allocation | The following table summarizes the purchase date fair value of acquired net intangible assets (excluding the noncompetition agreement) from Harpan (in thousands): Total Developed technology, useful life of 5 years $ 20,471 Goodwill 14,610 Total $ 35,081 |
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | |
Schedule of Acquisition Price Allocation | The following table summarizes the purchase date fair value of the net tangible assets, intangible assets (excluding the noncompetition and transfer service agreements) and the related goodwill acquired from Peak Games (in thousands): Total Developed technology, useful life of 5 years $ 24,000 Trade names, useful life of 7 years 2,000 Goodwill 72,120 Net tangible assets acquired 500 Total assets acquired $ 98,620 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes to Goodwill | The following table presents the changes to goodwill from December 31, 2016 to December 31, 2018 (in thousands): Goodwill – December 31, 2016 (1) $ 613,335 Additions 86,730 Foreign currency translation adjustments (2) 30,399 Goodwill – December 31, 2017 (1) $ 730,464 Additions 224,289 Foreign currency translation adjustments (2) (20,566 ) Goodwill – December 31, 2018 (1) $ 934,187 (1) There are no accumulated impairment losses at the beginning or end of any period presented. (2) The foreign currency translation adjustments are primarily related to adjustments on goodwill associated with the acquisition of NaturalMotion, for which the functional currency is denominated in British pounds. |
Acquisition-Related Intangible Assets | The details of our acquisition-related intangible assets as of December 31, 2018 and 2017 are as follows (in thousands): December 31, 2018 Gross Carrying Accumulated Net Book Value Amortization Value Developed technology $ 263,720 $ (167,664 ) $ 96,056 Trademarks, branding and domain names 32,772 (11,702 ) 21,070 Noncompetition agreements 8,390 (7,107 ) 1,283 Acquired lease intangibles 5,708 (5,517 ) 191 Total $ 310,590 $ (191,990 ) $ 118,600 December 31, 2017 Gross Carrying Accumulated Net Book Value Amortization Value Developed technology $ 197,908 $ (147,427 ) $ 50,481 Trademarks, branding and domain names 18,272 (10,152 ) 8,120 Noncompetition agreements 8,390 (3,079 ) 5,311 Acquired lease intangibles 5,708 (5,362 ) 346 Total $ 230,278 $ (166,020 ) $ 64,258 |
Schedule of Finite Lived Intangible Assets Future Amortization Expense | As of December 31, 2018, future amortization expense related to our intangible assets is shown below (in thousands): Year ending December 31: 2019 $ 32,383 2020 31,145 2021 23,596 2022 16,368 2023 5,869 Thereafter 3,119 Total $ 112,480 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) Before Income Taxes | Income (loss) before income taxes consists of the following for the periods shown below (in thousands): Year Ended December 31, 2018 2017 2016 United States $ 29,941 $ (6,081 ) $ (62,037 ) International (3,478 ) 43,664 (42,694 ) Total $ 26,463 $ 37,583 $ (104,731 ) |
Components of Provision for (Benefit from) Income Taxes | The provision for (benefit from) income taxes consists of the following for the periods shown below (in thousands): Year Ended December 31, 2018 2017 2016 Current tax expense (benefit): Federal $ 3,918 $ (2,132 ) $ (30 ) State 205 142 2 Foreign 11,967 13,562 7,178 Total current tax expense (benefit) $ 16,090 $ 11,572 $ 7,150 Deferred tax (benefit) expense: Federal $ 1,350 $ (1,231 ) $ (2,809 ) State 444 300 (20 ) Foreign (6,878 ) 303 (879 ) Total deferred tax (benefit) expense $ (5,084 ) $ (628 ) $ (3,708 ) Provision for (benefit from) income taxes $ 11,006 $ 10,944 $ 3,442 |
Reconciliation of Federal Statutory Income Tax Provision (Benefit) to Effective Income Tax Provision | The reconciliation of federal statutory income tax provision (benefit) to our effective income tax provision is as follows (in thousands): Year Ended December 31, 2018 2017 2016 Expected provision for (benefit from) income taxes at U.S. federal statutory rate (1) $ 5,557 $ 13,154 $ (36,656 ) State income taxes - net of federal benefit 205 142 2 BEAT obligation 3,918 — — Income taxed at foreign rates 4,447 (3,643 ) 20,112 Stock-based compensation (3,457 ) (2,898 ) 4,295 Tax reserve for uncertain tax positions 1,676 3,101 2,382 Change in valuation allowance (5,610 ) (51,976 ) 14,786 Impact of change in enacted tax rates (94 ) 48,296 69 Acquisition costs 536 — 110 Contingent consideration 1,155 (252 ) (2,781 ) Officer's compensation limitation 2,340 2,582 — Investment in subsidiaries — 1,676 — Other 333 762 1,123 Actual provision for (benefit from) income taxes $ 11,006 $ 10,944 $ 3,442 (1) For the purpose of the reconciliation above, the U.S. federal statutory rate was 21% for the year ended December 31, 2018 and 35% for both the years ended December 31, 2017 and 2016. |
Schedule of Deferred Tax Assets and Liabilities | Our deferred tax assets and liabilities are as follows (in thousands): December 31, December 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 60,737 $ 66,680 Tax credit carryforwards 103,740 99,966 Acquired intangible assets 28,957 25,692 Equity based compensation 10,150 7,467 Accrued expenses 3,718 5,505 Other accrued compensation 6,524 4,747 Charitable contributions 2,533 2,886 State taxes 351 248 Other — 735 Total deferred tax assets $ 216,710 $ 213,926 Less: Valuation allowance (205,989 ) (209,652 ) Deferred tax assets, net of valuation allowance $ 10,721 $ 4,274 Deferred tax liabilities: Acquired intangible liabilities $ (11,637 ) $ — Goodwill (5,000 ) (3,210 ) Deferred rent (2,334 ) (1,073 ) Depreciation (4,694 ) (3,839 ) Other (2,547 ) (1,248 ) Total deferred tax liabilities $ (26,212 ) $ (9,370 ) Net deferred taxes $ (15,491 ) $ (5,096 ) |
Summary of Net Operating Loss and Tax Credit Carryforwards | Net operating loss and tax credit carryforwards as of December 31, 2018 are as follows (in thousands): Amount Expiration years Net operating losses, federal $ 363,599 2028 - 2036 Net operating losses, state 216,531 2019 - 2037 Tax credits, federal 92,375 2027 - 2038 Tax credits, state 86,982 2021 - indefinite |
Schedule of Changes in Gross Unrecognized Tax Benefits | The following table reflects changes in the gross unrecognized tax benefits (in thousands): December 31, 2015 $ 142,845 Additions based on tax positions related to 2016 9,043 Additions for tax positions of prior years 68 Reductions for tax positions of prior years (856 ) December 31, 2016 $ 151,100 Additions based on tax positions related to 2017 8,598 Additions for tax positions of prior years 427 Decreases related to expiration of prior year tax positions (31 ) Decreases related to settlements of prior year tax positions (54 ) December 31, 2017 $ 160,040 Additions based on tax positions related to 2018 4,355 Additions for tax positions of prior years 815 Decreases related to expiration of prior year tax positions (1,230 ) December 31, 2018 $ 163,980 |
Other Current and Non-Current_2
Other Current and Non-Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): December 31, December 31, 2018 2017 Accrued accounts payable $ 22,669 $ 38,046 Accrued compensation liability 41,554 33,815 Accrued restructuring liability 3,449 3,674 Contingent consideration payable 17,300 — Accrued payable from acquisitions 35,000 12,800 Accrued lease incentive obligation 24,895 20,059 Value-added taxes payable 2,624 3,453 Other current liabilities 9,338 11,242 Total other current liabilities $ 156,829 $ 123,089 |
Schedule of Other Non-Current Liabilities | Other non-current liabilities consist of the following (in thousands): December 31, December 31, 2018 2017 Contingent consideration payable $ 31,700 $ — Accrued payable from acquisitions — 20,000 Accrued restructuring liability 7,613 10,856 Uncertain tax positions liability, including interest and penalties 10,065 8,975 Accrued lease incentive obligation — 4,836 Other non-current liabilities 3,208 4,245 Total other non-current liabilities $ 52,586 $ 48,912 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Summary of Net Restructuring Charges Within Consolidated Statement of Operation | We recorded the following net restructuring charges within our consolidated statements of operations for the years presented (in thousands): Year Ended December 31, 2018 2017 2016 Cost of revenue $ 27 $ — $ — Research and development 96 2,347 124 Sales and marketing — 149 — General and administrative 885 688 1,814 Total restructuring charges $ 1,008 $ 3,184 $ 1,938 |
Summary of Significant Restructuring Plan Activity Related To Employees And Other Charges | Significant restructuring activities related to the Company’s employees and other charges, summarized by plan, are presented in the table below (in thousands): Q4 2017 Q2 2015 Other Restructuring Plan Restructuring Plan Restructuring Plans Total Restructuring liability – December 31, 2015 $ — $ 26,406 $ 2,622 $ 29,028 Restructuring expense and adjustments — 926 1,012 1,938 Cash payments — (7,944 ) (3,550 ) (11,494 ) Restructuring liability – December 31, 2016 — 19,388 84 19,472 Restructuring expense and adjustments 1,466 (451 ) 2,169 3,184 Cash payments (1,095 ) (4,785 ) (2,246 ) (8,126 ) Restructuring liability – December 31, 2017 371 14,152 7 14,530 Restructuring expense and adjustments 723 254 31 1,008 Cash payments (911 ) (3,527 ) (38 ) (4,476 ) Restructuring liability – December 31, 2018 $ 183 $ 10,879 $ — $ 11,062 Cumulative costs to date, as of December 31, 2018 $ 2,189 $ 34,578 $ 6,025 $ 42,792 Total costs expected to be incurred, as of December 31, 2018 $ 2,189 $ 35,112 $ 6,025 $ 43,326 |
Stockholders' Equity and Othe_2
Stockholders' Equity and Other Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stock-Based Compensation Expense Related to Grants of Employee Stock Options, Restricted Stock Units (ZSUs) and Performance-Based Awards | We recorded stock-based compensation expense related to grants of employee stock options, ZSUs and performance-based awards in our consolidated statements of operations as follows (in thousands): Year Ended December 31, 2018 2017 2016 Cost of revenue $ 1,584 $ 1,838 $ 3,720 Research and development 42,151 42,176 84,236 Sales and marketing 8,495 7,281 7,254 General and administrative 16,009 13,220 12,251 Total stock-based compensation expense $ 68,239 $ 64,515 $ 107,461 |
Schedule of Share Based Compensation Stock Option Activity | The following table shows stock option activity for the year ended December 31, 2018 (in thousands, except weighted-average exercise price and weighted-average contractual term): Outstanding Options Stock Options Weighted- Average Exercise Price Aggregate Intrinsic Value of Stock Options Outstanding Weighted- Average Contractual Term (in years) Balance as of December 31, 2017 32,964 $ 2.07 $ 64,114 6.32 Granted 6,122 3.48 Forfeited, expired and cancelled (523 ) 3.66 Exercised (2,378 ) 1.14 Balance as of December 31, 2018 36,185 $ 2.35 $ 57,510 6.23 As of December 31, 2018 Exercisable options 18,604 $ 1.74 $ 41,016 4.38 Vested and expected to vest 36,185 $ 2.35 $ 57,510 6.23 |
Weighted-Average Grant Date Fair Value of Stock Options and Related Assumptions | The following table presents the weighted-average grant date fair value and related assumptions used to estimate the fair value of our stock options: Year Ended December 31, 2018 2017 2016 Expected term, in years 6 6 6 Risk-free interest rates 2.14 % 2.12 % 1.53 % Expected volatility 47 % 46 % 50 % Dividend yield — — — Weighted-average estimated fair value of stock options granted during the year $ 1.61 $ 1.75 $ 1.30 |
Schedule of Share Based Compensation Restricted Stock Units Award Activity | The following table shows a summary of ZSU activity for the year ended December 31, 2018 (in thousands, except weighted-average grant date fair value): Outstanding ZSUs Weighted- Average Grant Date Aggregate Intrinsic Fair Value Value of Shares (per share) Unvested ZSUs Unvested as of December 31, 2017 45,478 $ 3.00 $ 181,912 Granted 32,493 3.85 Vested (17,135 ) 2.97 Forfeited (8,354 ) 3.29 Unvested as of December 31, 2018 52,482 $ 3.49 $ 206,254 |
Common Stock Reserved For Future Issuance | As of December 31, 2018, we had reserved shares of common stock for future issuance as follows (in thousands): December 31, 2018 Stock options outstanding 36,185 ZSUs outstanding 52,482 2011 Equity Incentive Plan 132,288 2011 Employee Stock Purchase Plan 107,578 Total 328,533 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table shows a summary of changes in accumulated other comprehensive income (loss) by component from December 31, 2016 to December 31, 2018 (in thousands): Foreign Currency Translation Unrealized Gains on Available- for-Sale Marketable Securities Total Balance as of December 31, 2016 $ (128,671 ) $ (23 ) $ (128,694 ) Other comprehensive income (loss) before reclassifications 35,352 (155 ) 35,197 Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss) 35,352 (155 ) 35,197 Balance as of December 31, 2017 $ (93,319 ) $ (178 ) $ (93,497 ) Other comprehensive income (loss) before reclassifications (25,122 ) 180 (24,942 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss) (25,122 ) 180 (24,942 ) Balance as of December 31, 2018 $ (118,441 ) $ 2 $ (118,439 ) |
Net Income (Loss) Per Share o_2
Net Income (Loss) Per Share of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share of Common Stock | The following table sets forth the computation of basic and diluted net income (loss) per share of common stock (in thousands, except per share data): Year Ended December 31, 2018 Class A (1) BASIC: Net income (loss) attributable to common stockholders – basic $ 15,457 Weighted-average common shares outstanding – basic 862,460 Net income (loss) per share attributable to common stockholders – basic $ 0.02 DILUTED: Net income (loss) attributable to common stockholders – basic $ 15,457 Weighted-average common shares outstanding – basic 862,460 Weighted-average effect of dilutive securities: Stock options and employee stock purchase plan 10,958 ZSUs 15,212 Performance-based ZSUs 954 Weighted-average common shares outstanding – diluted 889,584 Net income (loss) per share attributable to common stockholders – diluted $ 0.02 (1) The net income (loss) per share calculation for the year ended December 31, 2018 is presented as if the one-for-one class conversion occurred as of the beginning of the period. Year Ended December 31, 2017 2016 Class Class Class Class Class Class A B C A B C BASIC: Net income (loss) attributable to common stockholders – basic $ 23,795 $ 2,204 $ 629 $ (92,988 ) $ (12,660 ) $ (2,525 ) Weighted-average common shares outstanding – basic 776,625 71,925 20,517 755,460 102,850 20,517 Net income (loss) per share attributable to common stockholders – basic $ 0.03 $ 0.03 $ 0.03 $ (0.12 ) $ (0.12 ) $ (0.12 ) DILUTED: Net income (loss) attributable to common stockholders – basic $ 23,795 $ 2,204 $ 629 $ (92,988 ) $ (12,660 ) $ (2,525 ) Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares 629 — — (2,525 ) — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares 2,204 — — (12,660 ) — — Reallocation of net income (loss) to Class B and Class C shares — 180 (20 ) — — — Net income (loss) attributable to common stockholders – diluted $ 26,628 $ 2,384 $ 609 $ (108,173 ) $ (12,660 ) $ (2,525 ) Weighted-average common shares outstanding – basic 776,625 71,925 20,517 755,460 102,850 20,517 Conversion of Class C to Class A common shares outstanding 20,517 — — 20,517 — — Conversion of Class B to Class A common shares outstanding 71,925 — — 102,850 — — Weighted-average effect of dilutive securities: Stock options and employee stock purchase plan 9,879 8,390 — — — — ZSUs 16,935 — — — — — Performance-based ZSUs 1,284 — — — — — Weighted-average common shares outstanding – diluted 897,165 80,315 20,517 878,827 102,850 20,517 Net income (loss) per share attributable to common stockholders – diluted $ 0.03 $ 0.03 $ 0.03 $ (0.12 ) $ (0.12 ) $ (0.12 ) |
Shares Excluded from Calculation of Diluted Net Income (Loss) per Share | The following weighted-average employee equity awards were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive for the periods presented (in thousands): Year Ended December 31, 2018 2017 2016 Stock options and employee stock purchase plan 6,193 17,331 28,380 Restricted shares — 349 3,899 ZSUs 8,071 5,087 61,183 Total 14,264 22,767 93,462 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of Cash to be Received Future Minimum Rentals for Noncancelable Lease Term | As of December 31, 2018, cash to be received from future minimum rentals for the noncancelable lease term are as follows (in thousands): Year ending December 31: 2019 $ 16,437 2020 24,706 2021 30,934 2022 31,863 2023 32,819 Thereafter 169,869 Total $ 306,628 |
Schedule of Future Minimum Lease Payments for Operating Leases | We have entered into operating leases for primarily office facilities. As of December 31, 2018, future minimum lease payments related to the Company’s leases are as follows (in thousands): Year ending December 31: 2019 $ 8,974 2020 8,782 2021 7,384 2022 3,611 2023 2,215 Thereafter 185 Total $ 31,151 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Contractual Royalty Payments to Licensors and Marketing Commitments | We have entered into several contracts with licensors that contain minimum contractual and marketing commitments that may not be dependent on any deliverables. As of December 31, 2018, future minimum contractual royalty payments due to licensors and marketing commitments for the licensed products are as follows (in thousands): Year ending December 31: 2019 $ 16,356 2020 42,369 Thereafter — Total $ 58,725 |
Schedule of Future Minimum Purchase Commitments | We have entered into several contracts primarily for hosting of data systems and other services. As of December 31, 2018, future minimum purchase commitments that have initial or remaining non-cancelable terms are as follows (in thousands): Year ending December 31: 2019 $ 23,304 2020 19,331 2021 8,861 Thereafter — Total $ 51,496 |
Overview and Summary of Signi_4
Overview and Summary of Significant Accounting Policies - Additional Information (Detail) | Jan. 01, 2019USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2018USD ($)SegmentFinancial_Institution$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||||
Initial offering period | December 2,011 | |||||
Discontinued online game revenue and income from operations | $ 900,000 | $ 1,300,000 | $ 4,000,000 | |||
Impact on reported earnings per share | $ / shares | $ 0 | $ 0 | $ 0 | |||
Changes in revenue from adjustments of prior period deferred revenue | $ 0 | |||||
Discontinued game revenue from adjustments of prior period deferred revenue | $ 0 | |||||
Online game revenue from changes in our estimated average playing period | $ 100,000 | |||||
Operating segment | Segment | 1 | |||||
Reportable segment | Segment | 1 | |||||
Impairments of short-term investments | $ 0 | |||||
Impairment of intangible assets | [1] | $ 20,677,000 | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |||
Number of financial institutions in which cash, cash equivalents and securities held | Financial_Institution | 3 | |||||
Advertising expense | $ 157,700,000 | $ 147,200,000 | $ 132,500,000 | |||
ASU 2016-02 [Member] | Subsequent Event [Member] | ||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||||
Derecognize restructuring plan Liability | $ 10,900,000 | |||||
Lease liability recognized | $ 10,900,000 | |||||
Facebook [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||||
Entity wide accounts receivables major customer percentage | 15.00% | 10.00% | ||||
Apple [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||||
Entity wide accounts receivables major customer percentage | 26.00% | 34.00% | ||||
Google [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||||
Entity wide accounts receivables major customer percentage | 27.00% | 19.00% | ||||
Acquired Intangible Assets [Member] | ||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||||
Impairment of intangible assets | $ 0 | $ 0 | ||||
Rising Tide [Member] | Developed Technology [Member] | ||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||||
Impairment of intangible assets | $ 18,200,000 | |||||
Zindagi [Member] | Developed Technology [Member] | ||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||||
Impairment of intangible assets | $ 2,500,000 | |||||
Minimum [Member] | ||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||||
Stipulate payment terms as specific number of days subsequent to end of the month | 30 days | |||||
Estimated useful lives of intangible assets | 12 months | |||||
Maximum [Member] | ||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||||
Stipulate payment terms as specific number of days subsequent to end of the month | 60 days | |||||
Estimated useful lives of intangible assets | 84 months | |||||
Facebook [Member] | ||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||||
Percentage of transaction fee recognized price | 70.00% | |||||
Percentage of revenue recognized price | 70.00% | |||||
Consumable Virtual Items [Member] | ||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||||
Revenue recognition period | 1 month | |||||
[1] | Prior period amounts retrospectively adjusted to reflect the adoption of ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”. Refer to Note 1 – “Overview and Summary of Significant Accounting Policies” in the notes to the consolidated financial statements for further discussion on the adoption. |
Overview and Summary of Signi_5
Overview and Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Computer Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 years |
Software [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 2 years |
Software [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 years |
Building and Building Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 7 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 39 years |
Furniture and Fixtures [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 2 years |
Leasehold Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | Shorter of useful life (generally up to 7 years) or remaining lease term |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 25, 2018 | ||
Disaggregation Of Revenue [Line Items] | |||||||
Deferred revenue | $ 129,200,000 | ||||||
Net cash flows provided by (used in) operating activities | 168,240,000 | $ 94,375,000 | [1] | $ 60,030,000 | [1] | ||
Net cash flows provided by (used in) investing activities | 18,981,000 | (431,281,000) | [1] | 207,028,000 | [1] | ||
Net cash flows provided by (used in) financing activities | (8,308,000) | (123,078,000) | [1] | (145,212,000) | [1] | ||
Net income (loss) | 15,457,000 | 26,639,000 | (108,173,000) | ||||
Change in deferred revenue | 62,338,000 | $ (7,581,000) | [1] | $ 13,113,000 | [1] | ||
Gram Games [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Accounts receivables, net | $ 10,700,000 | $ 10,747,000 | |||||
Minimum [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Contract payment term related to advertising arrangements | 30 days | ||||||
Maximum [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Contract payment term related to advertising arrangements | 60 days | ||||||
Durable Virtual Items [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Estimated weighted average life of product | 9 months | 8 months | |||||
Sales Revenue, Net [Member] | Product Concentration Risk [Member] | Consumable Virtual Items [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Percentage of online game revenue | 43.00% | 44.00% | |||||
Sales Revenue, Net [Member] | Product Concentration Risk [Member] | Durable Virtual Items [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Percentage of online game revenue | 57.00% | 56.00% | |||||
ASC Topic 606 [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Net reduction to accumulated deficit opening balance | $ 4,000,000 | ||||||
Increase in accumulated deficit result of net income impact transition adjustment recognized | 4,000,000 | ||||||
Net cash flows provided by (used in) operating activities | $ 0 | ||||||
Net cash flows provided by (used in) investing activities | 0 | ||||||
Net cash flows provided by (used in) financing activities | 0 | ||||||
ASC Topic 606 [Member] | Impact of Changes in Accounting Policies, Effect of Change Higher/(Lower) [Member] | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Deferred revenue | $ 4,000,000 | ||||||
Net income (loss) | 6,342,000 | ||||||
Change in deferred revenue | $ (6,300,000) | ||||||
[1] | Prior period amounts retrospectively adjusted to reflect the adoption of ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”. Refer to Note 1 – “Overview and Summary of Significant Accounting Policies” in the notes to the consolidated financial statements for further discussion on the adoption. |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Impact of Adoption of Accounting Standards on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current liabilities: | ||||
Deferred revenue | $ 191,299 | $ 134,007 | ||
Total current liabilities | 479,834 | 282,711 | ||
Deferred revenue | 1,586 | 568 | ||
Total liabilities | 550,093 | 338,093 | ||
Accumulated deficit | (1,789,664) | (1,691,768) | ||
Total stockholders' equity | 1,596,610 | 1,641,240 | $ 1,580,664 | $ 1,786,901 |
Total liabilities and stockholders' equity | 2,146,703 | $ 1,979,333 | ||
ASC Topic 606 [Member] | Amounts without Adoption of ASC Topic 606 [Member] | ||||
Current liabilities: | ||||
Deferred revenue | 202,238 | |||
Total current liabilities | 490,773 | |||
Deferred revenue | 1,013 | |||
Total liabilities | 560,459 | |||
Accumulated deficit | (1,800,030) | |||
Total stockholders' equity | 1,586,244 | |||
Total liabilities and stockholders' equity | 2,146,703 | |||
ASC Topic 606 [Member] | Increase (Decrease) from ASC Topic 606 Adoption [Member] | ||||
Current liabilities: | ||||
Deferred revenue | (10,939) | |||
Total current liabilities | (10,939) | |||
Deferred revenue | 573 | |||
Total liabilities | (10,366) | |||
Accumulated deficit | 10,366 | |||
Total stockholders' equity | $ 10,366 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Summary of Impact of Adoption of Accounting Standards on Consolidated Statement of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue: | |||
Total revenue | $ 907,208 | $ 861,390 | $ 741,420 |
Income (loss) from operations | 6,762 | 25,724 | (114,249) |
Income (loss) before taxes | 26,463 | 37,583 | (104,731) |
Net income (loss) | $ 15,457 | $ 26,639 | $ (108,173) |
Net income (loss) per share attributable to common stockholders: | |||
Basic | $ 0.02 | $ 0.03 | $ (0.12) |
Diluted | $ 0.02 | $ 0.03 | $ (0.12) |
Advertising and Other [Member] | |||
Revenue: | |||
Total revenue | $ 236,331 | $ 195,797 | $ 194,129 |
ASC Topic 606 [Member] | Amounts without Adoption of ASC Topic 606 [Member] | |||
Revenue: | |||
Total revenue | 900,866 | ||
Income (loss) from operations | 420 | ||
Income (loss) before taxes | 20,121 | ||
Net income (loss) | $ 9,115 | ||
Net income (loss) per share attributable to common stockholders: | |||
Basic | $ 0.01 | ||
Diluted | $ 0.01 | ||
ASC Topic 606 [Member] | Increase (Decrease) from ASC Topic 606 Adoption [Member] | |||
Revenue: | |||
Total revenue | $ 6,342 | ||
Income (loss) from operations | 6,342 | ||
Income (loss) before taxes | 6,342 | ||
Net income (loss) | $ 6,342 | ||
Net income (loss) per share attributable to common stockholders: | |||
Basic | $ 0.01 | ||
Diluted | $ 0.01 | ||
ASC Topic 606 [Member] | Advertising and Other [Member] | Amounts without Adoption of ASC Topic 606 [Member] | |||
Revenue: | |||
Total revenue | $ 229,989 | ||
ASC Topic 606 [Member] | Advertising and Other [Member] | Increase (Decrease) from ASC Topic 606 Adoption [Member] | |||
Revenue: | |||
Total revenue | $ 6,342 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Summary of Revenue Disaggregated by Platform (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 907,208 | $ 861,390 | $ 741,420 |
Mobile Online Game [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 590,436 | 564,629 | 413,919 |
Web Online Game [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 80,441 | 100,964 | 133,372 |
Online Game [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 670,877 | 665,593 | 547,291 |
Mobile Advertising and Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 225,085 | 174,867 | 160,452 |
Web Advertising and Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 9,001 | 14,961 | 30,637 |
Other Advertising [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 2,245 | 5,969 | 3,040 |
Advertising and Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 236,331 | $ 195,797 | $ 194,129 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Summary of Revenue disaggregated Based on Geographic Location (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 907,208 | $ 861,390 | $ 741,420 |
United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 593,973 | 567,315 | 507,473 |
All Other Countries [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 313,235 | $ 294,075 | $ 233,947 |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Additional Information (Detail1) | Dec. 31, 2018 |
Maximum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Expected length of unsatisfaction of performance obligations | 1 year |
Marketable Securities - Summary
Marketable Securities - Summary of Available-for-Sale Short-Term Investments Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 36,230 | $ 308,684 |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (178) | |
Aggregate Fair Value | 36,232 | 308,506 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 36,230 | 308,684 |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (178) | |
Aggregate Fair Value | $ 36,232 | $ 308,506 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses related to short-term investments | $ (200,000) | |
Fair value | $ 5,000,000 | 143,000,000 |
Available-for-sale securities, continuous unrealized loss position, more than twelve months, fair value | $ 0 | $ 0 |
Maximum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale short-term investments period of contractual maturities | 1 year | |
Unrealized losses related to short-term investments | $ (100,000) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | May 25, 2018 | |
Gram Games [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration payable, total years | 3 years | |
Contingent consideration obligation | $ 49,000,000 | $ 43,500,000 |
Gram Games [Member] | Research and Development Expense [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration obligation, expense recognized | 5,500,000 | |
PuzzleSocial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration obligation | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - Fair Value Measurements Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | $ 41,784 | $ 531,006 |
Cash Equivalents [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 565 | 177,577 |
Corporate Debt Securities [Member] | Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 4,987 | 44,923 |
Corporate Debt Securities [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 36,232 | 308,506 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 565 | 177,577 |
Fair Value, Inputs, Level 1 [Member] | Cash Equivalents [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 565 | 177,577 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 41,219 | 353,429 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 4,987 | 44,923 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 36,232 | $ 308,506 |
Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 49,000 | |
Contingent Consideration [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | $ 49,000 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Liabilities Measured on Recurring Basis (Detail) - Fair Value Measurements Recurring [Member] - Fair Value, Inputs, Level 3 [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Additions | $ 43,500 |
Fair value adjustments | 5,500 |
Contingent consideration obligation – December 31, 2018 | $ 49,000 |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 365,029 | $ 360,633 |
Less accumulated depreciation | (98,472) | (94,044) |
Total property and equipment, net | 266,557 | 266,589 |
Computer Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 20,624 | 21,583 |
Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 34,937 | 32,509 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 89,130 | 89,130 |
Building and Building Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 203,873 | 199,070 |
Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 10,321 | 10,376 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 6,144 | $ 7,965 |
Property and Equipment, Net - P
Property and Equipment, Net - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment, net | $ 266,557 | $ 266,589 |
United States [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment, net | 262,844 | 263,037 |
All Other Countries [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment, net | $ 3,713 | $ 3,552 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | May 25, 2018 | Dec. 12, 2017 | Feb. 14, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Weighted average amortization period of acquired intangible assets | 3 years 10 months 24 days | ||||
Intangible assets | $ 118,600,000 | $ 64,258,000 | |||
Noncompetition Agreements [Member] | |||||
Business Acquisition [Line Items] | |||||
Weighted average amortization period of acquired intangible assets | 1 year 1 month 6 days | ||||
Intangible assets | $ 1,283,000 | $ 5,311,000 | |||
Gram Games [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition effective date of acquisition | May 25, 2018 | ||||
Percentage of acquired equity interest | 100.00% | ||||
Business acquisition, cost of acquired entity | $ 299,400,000 | ||||
Business acquisition, cost of acquired entity upfront cash paid | 230,900,000 | ||||
Business acquisition, retained in escrow | $ 25,000,000 | ||||
Business acquisition, escrow period | 18 months | ||||
Estimated amount allocated to business combination | $ 255,914,000 | ||||
Remaining purchase contingent consideration | $ 43,500,000 | 49,000,000 | |||
Potential future payments maximum period | 3 years | ||||
Weighted average amortization period of acquired intangible assets | 4 years 8 months 12 days | ||||
Gram Games [Member] | General and Administrative Expense [Member] | |||||
Business Acquisition [Line Items] | |||||
Professional fees and transaction taxes | $ 1,700 | ||||
Gram Games [Member] | Noncompetition Agreements [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, useful life | 3 years | ||||
Harpan LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition effective date of acquisition | Feb. 14, 2017 | ||||
Business acquisition, cost of acquired entity upfront cash paid | $ 42,500,000 | ||||
Estimated amount allocated to business combination | $ 35,081,000 | ||||
Harpan LLC [Member] | Noncompetition Agreements [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, useful life | 2 years | ||||
Intangible assets | $ 7,400,000 | ||||
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition effective date of acquisition | Dec. 12, 2017 | ||||
Business acquisition, cost of acquired entity upfront cash paid | $ 99,700,000 | ||||
Estimated amount allocated to business combination | $ 98,620,000 | ||||
Weighted average amortization period of acquired intangible assets | 5 years 2 months 12 days | ||||
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | Noncompetition Agreements [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, useful life | 3 years | ||||
Intangible assets | $ 1,000,000 | ||||
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | Transition Service Agreement [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 100,000 | ||||
Term of agreement | 12 months | ||||
Peak and Solitaire Games [Member] | |||||
Business Acquisition [Line Items] | |||||
Professional fees and transaction taxes | $ 3,000,000 |
Acquisitions - Schedule of Acqu
Acquisitions - Schedule of Acquisition Price Allocation (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | May 25, 2018 | Dec. 31, 2017 | Dec. 12, 2017 | Feb. 14, 2017 | Dec. 31, 2016 |
Intangible assets, net: | ||||||
Goodwill | $ 934,187 | $ 730,464 | $ 613,335 | |||
Gram Games [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 8,474 | |||||
Accounts receivable, net | $ 10,700 | 10,747 | ||||
Prepaid expenses | 279 | |||||
Other current assets | 937 | |||||
Intangible assets, net: | ||||||
Goodwill | 224,289 | |||||
Property and equipment, net | 898 | |||||
Other non-current assets | 329 | |||||
Total assets acquired | 329,453 | |||||
Accounts payable | (8,874) | |||||
Income tax payable | (502) | |||||
Other current liabilities | (5,164) | |||||
Deferred tax liabilities, net | (15,499) | |||||
Total liabilities assumed | (30,039) | |||||
Total purchase price consideration | 299,414 | |||||
Non-current contingent consideration payable | (43,500) | |||||
Total cash consideration | 255,914 | |||||
Gram Games [Member] | Developed Technology, Useful Life of 5 Years [Member] | ||||||
Intangible assets, net: | ||||||
Intangible assets, net acquired | 43,000 | |||||
Gram Games [Member] | Developed Technology, Useful Life of 3 Years [Member] | ||||||
Intangible assets, net: | ||||||
Intangible assets, net acquired | 26,000 | |||||
Gram Games [Member] | Trade Names, Useful Life of 7 Years [Member] | ||||||
Intangible assets, net: | ||||||
Intangible assets, net acquired | 14,000 | |||||
Gram Games [Member] | Trade Names, Useful Life of 3 Years [Member] | ||||||
Intangible assets, net: | ||||||
Intangible assets, net acquired | $ 500 | |||||
Harpan LLC [Member] | ||||||
Intangible assets, net: | ||||||
Goodwill | $ 14,610 | |||||
Total cash consideration | 35,081 | |||||
Harpan LLC [Member] | Developed Technology [Member] | ||||||
Intangible assets, net: | ||||||
Intangible assets, net acquired | $ 20,471 | |||||
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | ||||||
Intangible assets, net: | ||||||
Goodwill | $ 72,120 | |||||
Property and equipment, net | 500 | |||||
Total cash consideration | 98,620 | |||||
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | Developed Technology [Member] | ||||||
Intangible assets, net: | ||||||
Intangible assets, net acquired | 24,000 | |||||
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | Trade Names [Member] | ||||||
Intangible assets, net: | ||||||
Intangible assets, net acquired | $ 2,000 |
Acquisitions - Schedule of Ac_2
Acquisitions - Schedule of Acquisition Price Allocation (Parenthetical) (Detail) | May 25, 2018 | Dec. 12, 2017 | Feb. 14, 2017 |
Gram Games [Member] | Developed Technology, Useful Life of 5 Years [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets, useful life | 5 years | ||
Gram Games [Member] | Developed Technology, Useful Life of 3 Years [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets, useful life | 3 years | ||
Gram Games [Member] | Trade Names, Useful Life of 7 Years [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets, useful life | 7 years | ||
Gram Games [Member] | Trade Names, Useful Life of 3 Years [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets, useful life | 3 years | ||
Harpan LLC [Member] | Developed Technology [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets, useful life | 5 years | ||
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | Developed Technology [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets, useful life | 5 years | ||
Peak Oyun Yazilim Ve Pazarlama Anonim Sirketi (Peak Games) [Member] | Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets, useful life | 7 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Schedule of Changes to Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill Roll Forward | ||
Goodwill, beginning balance | $ 730,464 | $ 613,335 |
Additions | 224,289 | 86,730 |
Foreign currency translation adjustments | (20,566) | 30,399 |
Goodwill, ending balance | $ 934,187 | $ 730,464 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Schedule of Changes to Goodwill (Parenthetical) (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill Roll Forward | |||
Accumulated impairment losses | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Acquisition-Related Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 310,590 | $ 230,278 |
Accumulated Amortization | (191,990) | (166,020) |
Net Book Value | 118,600 | 64,258 |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 263,720 | 197,908 |
Accumulated Amortization | (167,664) | (147,427) |
Net Book Value | 96,056 | 50,481 |
Trademarks, Branding and Domain Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 32,772 | 18,272 |
Accumulated Amortization | (11,702) | (10,152) |
Net Book Value | 21,070 | 8,120 |
Noncompetition Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 8,390 | 8,390 |
Accumulated Amortization | (7,107) | (3,079) |
Net Book Value | 1,283 | 5,311 |
Acquired Lease Intangibles [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 5,708 | 5,708 |
Accumulated Amortization | (5,517) | (5,362) |
Net Book Value | $ 191 | $ 346 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 3 years 10 months 24 days | ||
Impairment charges | $ 20.7 | ||
Trademarks, Branding and Domain Names [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 6.1 | 6.1 | |
Weighted-average remaining useful lives of acquired intangible assets | 6 years 3 months 18 days | ||
Developed Technology [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 3 years 7 months 6 days | ||
Acquired Lease Intangibles [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 1 year 4 months 24 days | ||
Other Intangible Assets [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 29 | $ 16.2 | $ 29 |
Noncompetition Agreements [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 1 year 1 month 6 days |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets, Net - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | |
2,019 | $ 32,383 |
2,020 | 31,145 |
2,021 | 23,596 |
2,022 | 16,368 |
2,023 | 5,869 |
Thereafter | 3,119 |
Total | $ 112,480 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | ||||||||
Federal corporate tax rate | 21.00% | 35.00% | 35.00% | |||||
Increase in income tax expense benefit | $ 1,000,000 | $ 1,000,000 | ||||||
Tax cuts and jobs act of 2017 completed accounting provisional period lapsed | 1 year | |||||||
Recognised provisional tax benefit | $ 3,900,000 | $ 5,000,000 | ||||||
Deferred tax assets and liabilities, net of valuation allowance | 2,400,000 | |||||||
Alternative minimum tax credit refund | 2,600,000 | |||||||
Effective income tax rate reconciliation, repatriation of foreign earnings | 73,000,000 | 48,800,000 | ||||||
Unrecognized Tax Benefits | $ 163,980,000 | $ 160,040,000 | 163,980,000 | 160,040,000 | 163,980,000 | 160,040,000 | $ 151,100,000 | $ 142,845,000 |
Unrecognized tax benefits that might impact effective tax rate | 164,000,000 | 160,000,000 | 164,000,000 | 160,000,000 | 164,000,000 | 160,000,000 | ||
Tax benefits | 9,200,000 | 9,000,000 | (11,006,000) | (10,944,000) | (3,442,000) | |||
Interest and penalties recorded | 200,000 | 300,000 | $ 100,000 | |||||
Liability for uncertain tax positions | 900,000 | $ 1,000,000 | 900,000 | $ 1,000,000 | 900,000 | $ 1,000,000 | ||
Deferred Tax Assets [Member] | ||||||||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | ||||||||
Unrecognized Tax Benefits | 154,800,000 | 154,800,000 | 154,800,000 | |||||
Other Noncurrent Liabilities [Member] | ||||||||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | ||||||||
Unrecognized Tax Benefits | $ 9,200,000 | $ 9,200,000 | 9,200,000 | |||||
BEAT [Member] | ||||||||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | ||||||||
Recognised provisional tax benefit | 3,900,000 | |||||||
Net operating losses, Taxable income | 0 | |||||||
GILTI [Member] | ||||||||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | ||||||||
Recognised provisional tax benefit | $ 0 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 29,941 | $ (6,081) | $ (62,037) |
International | (3,478) | 43,664 | (42,694) |
Income (loss) before income taxes | $ 26,463 | $ 37,583 | $ (104,731) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for (Benefit from) Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current tax expense (benefit): | |||||
Federal | $ 3,918 | $ (2,132) | $ (30) | ||
State | 205 | 142 | 2 | ||
Foreign | 11,967 | 13,562 | 7,178 | ||
Total current tax expense (benefit) | 16,090 | 11,572 | 7,150 | ||
Deferred tax (benefit) expense: | |||||
Federal | 1,350 | (1,231) | (2,809) | ||
State | 444 | 300 | (20) | ||
Foreign | (6,878) | 303 | (879) | ||
Total deferred tax (benefit) expense | (5,084) | (628) | (3,708) | ||
Provision for (benefit from) income taxes | $ (9,200) | $ (9,000) | $ 11,006 | $ 10,944 | $ 3,442 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Statutory Income Tax Provision (Benefit) to Effective Income Tax Provision (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||
Expected provision for (benefit from) income taxes at U.S. federal statutory rate | $ 5,557 | $ 13,154 | $ (36,656) | ||
State income taxes - net of federal benefit | 205 | 142 | 2 | ||
BEAT obligation | 3,918 | ||||
Income taxed at foreign rates | 4,447 | (3,643) | 20,112 | ||
Stock-based compensation | (3,457) | (2,898) | 4,295 | ||
Tax reserve for uncertain tax positions | 1,676 | 3,101 | 2,382 | ||
Change in valuation allowance | (5,610) | (51,976) | 14,786 | ||
Impact of change in enacted tax rates | (94) | 48,296 | 69 | ||
Acquisition costs | 536 | 110 | |||
Contingent consideration | 1,155 | (252) | (2,781) | ||
Officer's compensation limitation | 2,340 | 2,582 | |||
Investment in subsidiaries | 1,676 | ||||
Other | 333 | 762 | 1,123 | ||
Provision for (benefit from) income taxes | $ (9,200) | $ (9,000) | $ 11,006 | $ 10,944 | $ 3,442 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Federal Statutory Income Tax Provision (Benefit) to Effective Income Tax Provision (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 35.00% | 35.00% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 60,737 | $ 66,680 |
Tax credit carryforwards | 103,740 | 99,966 |
Acquired intangible assets | 28,957 | 25,692 |
Equity based compensation | 10,150 | 7,467 |
Accrued expenses | 3,718 | 5,505 |
Other accrued compensation | 6,524 | 4,747 |
Charitable contributions | 2,533 | 2,886 |
State taxes | 351 | 248 |
Other | 735 | |
Total deferred tax assets | 216,710 | 213,926 |
Less: Valuation allowance | (205,989) | (209,652) |
Deferred tax assets, net of valuation allowance | 10,721 | 4,274 |
Deferred tax liabilities: | ||
Acquired intangible liabilities | (11,637) | |
Goodwill | (5,000) | (3,210) |
Deferred rent | (2,334) | (1,073) |
Depreciation | (4,694) | (3,839) |
Other | (2,547) | (1,248) |
Total deferred tax liabilities | (26,212) | (9,370) |
Net deferred taxes | $ (15,491) | $ (5,096) |
Income Taxes - Summary of Net O
Income Taxes - Summary of Net Operating Loss and Tax Credit Carryforwards (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, amount | $ 216,531 |
Tax credit carryforward, amount | $ 86,982 |
State [Member] | Earliest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration year | 2,019 |
Tax credit carryforward, expiration year | 2,021 |
State [Member] | Latest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration year | 2,037 |
Tax credit carryforward, expiration | indefinite |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, amount | $ 363,599 |
Tax credit carryforward, amount | $ 92,375 |
Federal [Member] | Earliest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration year | 2,028 |
Tax credit carryforward, expiration year | 2,027 |
Federal [Member] | Latest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration year | 2,036 |
Tax credit carryforward, expiration year | 2,038 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning balance | $ 160,040 | $ 151,100 | $ 142,845 |
Additions based on tax positions related to current | 4,355 | 8,598 | 9,043 |
Additions for tax positions of prior years | 815 | 427 | 68 |
Reductions for tax positions of prior years | (1,230) | (31) | (856) |
Decreases related to settlements of prior year tax positions | (54) | ||
Unrecognized tax benefits, ending balance | $ 163,980 | $ 160,040 | $ 151,100 |
Other Current and Non-Current_3
Other Current and Non-Current Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Current [Abstract] | ||
Accrued accounts payable | $ 22,669 | $ 38,046 |
Accrued compensation liability | 41,554 | 33,815 |
Accrued restructuring liability | 3,449 | 3,674 |
Contingent consideration payable | 17,300 | |
Accrued payable from acquisitions | 35,000 | 12,800 |
Accrued lease incentive obligation | 24,895 | 20,059 |
Value-added taxes payable | 2,624 | 3,453 |
Other current liabilities | 9,338 | 11,242 |
Total other current liabilities | $ 156,829 | $ 123,089 |
Other Current and Non-Current_4
Other Current and Non-Current Liabilities - Schedule of Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Noncurrent [Abstract] | ||
Contingent consideration payable | $ 31,700 | |
Accrued payable from acquisitions | $ 20,000 | |
Accrued restructuring liability | 7,613 | 10,856 |
Uncertain tax positions liability, including interest and penalties | 10,065 | 8,975 |
Accrued lease incentive obligation | 4,836 | |
Other non-current liabilities | 3,208 | 4,245 |
Total other non-current liabilities | $ 52,586 | $ 48,912 |
Debt - Additional Information (
Debt - Additional Information (Detail) - Bank of America, N.A. [Member] - USD ($) $ in Millions | Dec. 28, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 |
Line Of Credit Facility [Line Items] | |||||||
Borrowings under credit facility | $ 100 | ||||||
Additional borrowing capacity remaining under credit facility | $ 100 | $ 100 | $ 100 | ||||
Credit Facility [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Credit facility expiration period | 3 months | 3 years | |||||
Aggregate principal amount | $ 200 | 200 | 200 | ||||
Credit facility remaining borrowing capacity | $ 150 | $ 150 | $ 150 | ||||
Debt instrument interest rate, description | At the Company’s option, revolving loans accrue interest at a per annum rate based on either (i) the base rate plus a margin ranging from 0.50% to 1.00%, determined based on the Company’s consolidated leverage ratio for the four most recent fiscal quarters (“the Consolidated Leverage Ratio”) or (ii) the LIBOR rate (for interest periods of one, two, three or six months) plus a margin ranging from 1.50% to 2.00%, determined based on the Company’s Consolidated Leverage Ratio (“LIBOR Loan”). The base rate is defined as the highest of (i) the federal funds rate, plus 0.50%, (ii) Bank of America, N.A.’s prime rate and (iii) the LIBOR rate for a 1-month interest period plus 1.00%. | ||||||
Debt instrument commitment fee, description | The Company is also obligated to pay an ongoing commitment fee on undrawn amounts at a rate ranging from 0.25% to 0.35%, determined based on the Company’s Consolidated Leverage Ratio. | ||||||
Debt instrumrnt effective interest rate | 4.31% | ||||||
Debt capitalized, amortize period | 3 years | 3 years | 3 years | ||||
Credit Facility [Member] | Minimum [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Payment for commitment fee, percentage | 0.25% | ||||||
Credit Facility [Member] | Maximum [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Payment for commitment fee, percentage | 0.35% | ||||||
Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Debt instrument interest rate | 0.50% | 0.50% | 0.50% | 0.50% | |||
Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Debt instrument interest rate | 1.00% | 1.00% | 1.00% | 1.00% | |||
Credit Facility [Member] | LIBOR Rate [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Debt instrument interest rate | 1.00% | 1.00% | 1.00% | ||||
Credit Facility [Member] | LIBOR Rate [Member] | Minimum [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Debt instrument interest rate | 1.50% | ||||||
Credit Facility [Member] | LIBOR Rate [Member] | Maximum [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Debt instrument interest rate | 2.00% | ||||||
Credit Facility [Member] | Federal Funds Rate [Member] | |||||||
Line Of Credit Facility [Line Items] | |||||||
Debt instrument interest rate | 0.50% | 0.50% | 0.50% |
Restructuring - Summary of Net
Restructuring - Summary of Net Restructuring Charges Within Consolidated Statement of Operation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring charges | $ 1,008 | $ 3,184 | $ 1,938 |
Cost of Revenue [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring charges | 27 | ||
Research and Development [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring charges | 96 | 2,347 | 124 |
Sales and Marketing [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring charges | 149 | ||
General and Administrative [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Total restructuring charges | $ 885 | $ 688 | $ 1,814 |
Restructuring - Summary of Sign
Restructuring - Summary of Significant Restructuring Plan Activity Related To Employees And Other Charges (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring liability, Beginning balance | $ 14,530 | $ 19,472 | $ 29,028 |
Restructuring expense and adjustments | 1,008 | 3,184 | 1,938 |
Cash payments | (4,476) | (8,126) | (11,494) |
Restructuring liability, Ending balance | 11,062 | 14,530 | 19,472 |
Cumulative costs to date, as of December 31, 2018 | 42,792 | ||
Total costs expected to be incurred, as of December 31, 2018 | 43,326 | ||
Q4 2017 Restructuring Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring liability, Beginning balance | 371 | ||
Restructuring expense and adjustments | 723 | 1,466 | |
Cash payments | (911) | (1,095) | |
Restructuring liability, Ending balance | 183 | 371 | |
Cumulative costs to date, as of December 31, 2018 | 2,189 | ||
Total costs expected to be incurred, as of December 31, 2018 | 2,189 | ||
Q2 2015 Restructuring Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring liability, Beginning balance | 14,152 | 19,388 | 26,406 |
Restructuring expense and adjustments | 254 | (451) | 926 |
Cash payments | (3,527) | (4,785) | (7,944) |
Restructuring liability, Ending balance | 10,879 | 14,152 | 19,388 |
Cumulative costs to date, as of December 31, 2018 | 34,578 | ||
Total costs expected to be incurred, as of December 31, 2018 | 35,112 | ||
Other Restructuring Plans [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring liability, Beginning balance | 7 | 84 | 2,622 |
Restructuring expense and adjustments | 31 | 2,169 | 1,012 |
Cash payments | (38) | (2,246) | (3,550) |
Restructuring liability, Ending balance | $ 7 | $ 84 | |
Cumulative costs to date, as of December 31, 2018 | 6,025 | ||
Total costs expected to be incurred, as of December 31, 2018 | $ 6,025 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses (benefits) | $ 1,008 | $ 3,184 | $ 1,938 |
Net restructuring charge | 1,008 | 3,184 | 1,938 |
Q4 2017 Restructuring Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses (benefits) | 723 | 1,466 | |
Net restructuring charge | 700 | ||
Employee severance Costs | 300 | 1,500 | |
Other costs | $ 400 | ||
Lease term expiration | 2022-11 | ||
Lessee option to early terminate lease term | 2019-11 | ||
Terms of assignment | All terms under the original lease were assigned in full to the assignee, with the assignee becoming primarily liable to make rental payments directly to the landlord. Further, the assignee was required to provide the landlord a security deposit equal to twelve months rent, to be used by the landlord in the event of the assignee’s non-performance under the lease. | ||
Estimated maximum exposure of the guarantee | $ 2,300 | ||
Q2 2015 Restructuring Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring expenses (benefits) | 254 | (451) | 926 |
Employee severance Costs | 100 | ||
Other costs | 100 | ||
Lease termination costs | $ 300 | $ 500 | $ 700 |
Restructuring liability, expected paid out period | 3 years 4 months 24 days |
Stockholders' Equity and Othe_3
Stockholders' Equity and Other Employee Benefits - Additional Information (Detail) | May 02, 2018Voting_Rightsshares | Nov. 30, 2011shares | Dec. 31, 2018USD ($)Voting_Rights$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Apr. 30, 2018USD ($) | Nov. 30, 2016USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Conversion of stock description | Our three classes of common stock are Class A, Class B and Class C common stock. On May 2, 2018, our founder, Mark Pincus, elected to convert certain outstanding shares of Class B common stock and all outstanding shares of Class C common stock controlled by Mr. Pincus and an affiliated investment entity into an equivalent number of shares of Class A common stock. As a result of Mr. Pincus’ conversion, the remaining shares of Class B common stock represented less than 10% of the total voting power of all Zynga stockholders and, accordingly, each remaining outstanding share of Class B common stock automatically converted into one share of Class A common stock. Each Zynga stockholder now has one vote per share on all matters subject to stockholder vote. Following the conversion, no shares of Class B or Class C common stock are outstanding and the total number of authorized shares of capital stock will be reduced to account for the elimination of the Class B and Class C common stock. | Conversion. Our Class A common stock is not convertible into any other shares of our capital stock. The Class B and Class C common stock converted into Class A common stock may not be reissued. | |||||
Voting rights per share | Voting_Rights | 1 | ||||||
Common stock, shares outstanding | shares | 861,111,000 | 870,660,000 | |||||
Common stock, voting rights | Voting Rights. Holders of our Class A common stock are entitled to one vote per share. | ||||||
Employee stock ownership Plan (ESOP), method of measuring compensation | The number of shares of our Class A common stock reserved for future issuance under our 2011 Plan will automatically increase on January 1 of each year, beginning on January 1, 2012, and continuing through and including January 1, 2021, by 4% of the total number of shares of our capital stock outstanding as of December 31 of the preceding calendar year or such lesser number of shares that may be determined by the Company’s Board of Directors. | ||||||
Aggregated intrinsic value of stock options exercised | $ 6,300,000 | $ 4,900,000 | $ 8,100,000 | ||||
Grant date fair value of options vested | 6,000,000 | 8,000,000 | 6,000,000 | ||||
Total unrecognized stock based compensation expense | 22,800,000 | ||||||
Total stock-based expense | $ 68,239,000 | 64,515,000 | 107,461,000 | ||||
Defined contribution plan, description of employees contribution | Participating employees may contribute up to 90% of their eligible compensation, or the statutory limit, whichever is lower. | ||||||
Percentage of employees contribution, maximum of eligible compensation | 90.00% | ||||||
Employer contribution amount for each dollar a participating employee contributed | $ 1 | $ 1 | $ 1 | ||||
Percentage of employer contribution, maximum of each employee eligible compensation | 3.00% | 3.00% | 3.00% | ||||
Savings plan, total expense | $ 4,700,000 | $ 4,500,000 | $ 4,500,000 | ||||
Zynga Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Contractual term | 10 years | ||||||
Weighted average recognition period | 2 years 8 months 12 days | ||||||
Restricted Stock Units (ZSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation awards vesting period | 4 years | ||||||
Weighted average recognition period | 2 years 8 months 12 days | ||||||
Total unrecognized stock based compensation expense, restricted shares | $ 160,400,000 | ||||||
Performance-Based Awards [Member] | Executive Officer [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation vesting terms | Generally, if the performance criteria are satisfied, one-half of the award vests immediately and the other half vests on the one-year anniversary. | ||||||
Total stock-based expense | $ 0 | 0 | 0 | ||||
Performance-Based Awards [Member] | Certain employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation vesting terms | Generally, if the performance criteria are satisfied, 25% of the award will vest immediately or soon after with the remaining vesting ratably for each quarter or six month periods thereafter. | ||||||
Total stock-based expense | $ 1,800,000 | $ 2,400,000 | $ 0 | ||||
Incremental compensation costs recorded at the time of modifications | $ 0 | ||||||
Maximum [Member] | Zynga Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation awards vesting period | 5 years | ||||||
Option grants vesting percentage | 25.00% | ||||||
Period over which stock options vest on monthly basis | 48 months | ||||||
Minimum [Member] | Zynga Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation awards vesting period | 4 years | ||||||
Option grants vesting percentage | 20.00% | ||||||
Period over which stock options vest on monthly basis | 36 months | ||||||
2018 Share Repurchase Program [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Treasury stock acquired, average cost per share | $ / shares | $ 3.71 | ||||||
Stock repurchase program, aggregate number of shares repurchased value | $ 26,200,000 | ||||||
2016 Share Repurchase Program [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Treasury stock acquired, average cost per share | $ / shares | $ 3.59 | $ 2.78 | $ 2.76 | ||||
Stock repurchase program, aggregate number of shares repurchased value | $ 65,400,000 | $ 101,000,000 | $ 34,200,000 | ||||
2016 Share Repurchase Program [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 200,000,000 | ||||||
Common Class B [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum percentage of common stock outstanding required for conversion | 10.00% | ||||||
Common stock, shares outstanding | shares | 0 | 66,767,000 | |||||
Common Class A [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares issued upon conversion of common stock | shares | 1 | ||||||
Voting rights per share | Voting_Rights | 1 | ||||||
Common stock, shares outstanding | shares | 861,111,000 | 783,376,000 | |||||
Annual increase percentage of common stock shares outstanding | 4.00% | ||||||
Common Class A [Member] | 2011 ESPP [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of capital stock outstanding | 2.00% | ||||||
Common stock capital shares reserved for future issuance increases | shares | 25,000,000 | ||||||
Share-based compensation arrangement by share-based payment award, maximum employee shares available for purchase | shares | 5,000 | ||||||
Share-based compensation arrangement by share-based payment award, maximum employee subscription rate | 15.00% | ||||||
Share based compensation arrangement by share based payment award employee discount rate | 85.00% | ||||||
Employee contributions | $ 3,100,000 | ||||||
Stock-based compensation expense related to 2011 ESPP | $ 2,900,000 | ||||||
Common Class A [Member] | 2018 Share Repurchase Program [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Repurchase of common stock | shares | 7,100,000 | ||||||
Common Class A [Member] | 2018 Share Repurchase Program [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 200,000,000 | ||||||
Common Class A [Member] | 2016 Share Repurchase Program [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Repurchase of common stock | shares | 18,200,000 | 36,300,000 | 12,300,000 | ||||
Common Class C [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, shares outstanding | shares | 0 | 20,517,000 |
Stockholders' Equity and Othe_4
Stockholders' Equity and Other Employee Benefits - Stock-Based Compensation Expense Related to Grants of Employee Stock Options, Restricted Stock Units (ZSUs) and Performance-Based Awards (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 68,239 | $ 64,515 | $ 107,461 |
Cost of Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 1,584 | 1,838 | 3,720 |
Research and Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 42,151 | 42,176 | 84,236 |
Sales and Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 8,495 | 7,281 | 7,254 |
General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 16,009 | $ 13,220 | $ 12,251 |
Stockholders' Equity and Othe_5
Stockholders' Equity and Other Employee Benefits - Schedule of Share Based Compensation Stock Option Activity (Detail) - Zynga Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Options Outstanding, Beginning balance | 32,964 | |
Stock Options, Granted | 6,122 | |
Stock Options, Forfeited, expired and cancelled | (523) | |
Stock Options, Exercised | (2,378) | |
Stock Options Outstanding, Ending balance | 36,185 | 32,964 |
Stock Options, Exercisable options | 18,604 | |
Stock Options, Vested and expected to vest | 36,185 | |
Outstanding Options, Weighted Average Exercise Price, Beginning Balance | $ 2.07 | |
Weighted Average Exercise Price, Granted | 3.48 | |
Weighted Average Exercise Price, Forfeited, expired and cancelled | 3.66 | |
Weighted Average Exercise Price, Exercised | 1.14 | |
Outstanding Options, Weighted Average Exercise Price, Ending Balance | 2.35 | $ 2.07 |
Weighted-Average Exercise Price, Exercisable options | 1.74 | |
Weighted-Average Exercise Price, Vested and expected to vest | $ 2.35 | |
Outstanding Options, Aggregate Intrinsic Value of Stock Options Outstanding | $ 57,510 | $ 64,114 |
Aggregate Intrinsic Value of Stock Options Outstanding, Exercisable options | 41,016 | |
Aggregate Intrinsic Value of Stock Options, Vested and expected to vest | $ 57,510 | |
Outstanding Options, Weighted Average Contractual Term (in years) | 6 years 2 months 23 days | 6 years 3 months 25 days |
Weighted-Average Contractual Term (in years), Exercisable options | 4 years 4 months 17 days | |
Weighted-Average Contractual Term (in years), Vested and expected to vest | 6 years 2 months 23 days |
Stockholders' Equity and Othe_6
Stockholders' Equity and Other Employee Benefits - Weighted-Average Grant Date Fair Value of Stock Options and Related Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Expected term, in years | 6 years | 6 years | 6 years |
Risk-free interest rates | 2.14% | 2.12% | 1.53% |
Expected volatility | 47.00% | 46.00% | 50.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average estimated fair value of stock options granted during the year | $ 1.61 | $ 1.75 | $ 1.30 |
Stockholders' Equity and Othe_7
Stockholders' Equity and Other Employee Benefits - Schedule of Share Based Compensation Restricted Stock Units Award Activity (Detail) - Restricted Stock Units (ZSUs) [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested Outstanding Shares, Beginning balance | 45,478 | |
Unvested Shares, Granted | 32,493 | |
Unvested Shares, Vested | (17,135) | |
Unvested Shares, Forfeited | (8,354) | |
Unvested Outstanding Shares, Ending balance | 52,482 | |
Unvested Weighted Average Grant Date Fair Value, Beginning balance | $ 3 | |
Unvested Weighted Average Grant Date Fair Value, Granted | 3.85 | |
Unvested Weighted Average Grant Date Fair Value, Vested | 2.97 | |
Unvested Weighted Average Grant Date Fair Value, Forfeited | 3.29 | |
Unvested Weighted Average Grant Date Fair Value, Ending balance | $ 3.49 | |
Unvested, Aggregate Intrinsic Value of Unvested ZSU | $ 206,254 | $ 181,912 |
Stockholders' Equity and Othe_8
Stockholders' Equity and Other Employee Benefits - Common Stock Reserved for Future Issuance (Detail) shares in Thousands | Dec. 31, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, Non-option equity instruments, Outstanding, Number | 328,533 |
2011 Equity Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, Non-option equity instruments, Outstanding, Number | 132,288 |
2011 Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, Non-option equity instruments, Outstanding, Number | 107,578 |
Zynga Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance | 36,185 |
Restricted Stock Units (ZSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, Non-option equity instruments, Outstanding, Number | 52,482 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance, Value | $ 1,641,240 | $ 1,580,664 | $ 1,786,901 |
Other comprehensive income (loss), net of tax: | (24,942) | 35,197 | (76,306) |
Ending balance, Value | 1,596,610 | 1,641,240 | 1,580,664 |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance, Value | (93,319) | (128,671) | |
Other comprehensive income (loss) before reclassifications, net of tax | (25,122) | 35,352 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | |
Other comprehensive income (loss), net of tax: | (25,122) | 35,352 | |
Ending balance, Value | (118,441) | (93,319) | (128,671) |
Unrealized Gains (Losses) on Available-for-Sale Marketable Securities [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance, Value | (178) | (23) | |
Other comprehensive income (loss) before reclassifications, net of tax | 180 | (155) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | |
Other comprehensive income (loss), net of tax: | 180 | (155) | |
Ending balance, Value | 2 | (178) | (23) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance, Value | (93,497) | (128,694) | (52,388) |
Other comprehensive income (loss) before reclassifications, net of tax | (24,942) | 35,197 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | |
Other comprehensive income (loss), net of tax: | (24,942) | 35,197 | (76,306) |
Ending balance, Value | $ (118,439) | $ (93,497) | $ (128,694) |
Net Income (Loss) Per Share o_3
Net Income (Loss) Per Share of Common Stock - Additional Information (Detail) - shares | May 02, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Earnings Per Share Diluted [Line Items] | |||
Conversion of stock description | Our three classes of common stock are Class A, Class B and Class C common stock. On May 2, 2018, our founder, Mark Pincus, elected to convert certain outstanding shares of Class B common stock and all outstanding shares of Class C common stock controlled by Mr. Pincus and an affiliated investment entity into an equivalent number of shares of Class A common stock. As a result of Mr. Pincus’ conversion, the remaining shares of Class B common stock represented less than 10% of the total voting power of all Zynga stockholders and, accordingly, each remaining outstanding share of Class B common stock automatically converted into one share of Class A common stock. Each Zynga stockholder now has one vote per share on all matters subject to stockholder vote. Following the conversion, no shares of Class B or Class C common stock are outstanding and the total number of authorized shares of capital stock will be reduced to account for the elimination of the Class B and Class C common stock. | Conversion. Our Class A common stock is not convertible into any other shares of our capital stock. The Class B and Class C common stock converted into Class A common stock may not be reissued. | |
Common stock, shares outstanding | 861,111,000 | 870,660,000 | |
Class A,B, and C Common Stock [Member] | |||
Earnings Per Share Diluted [Line Items] | |||
Conversion of stock description | As noted previously, our founder, Mark Pincus, elected to convert certain outstanding shares of Class B common stock and all outstanding shares of Class C common stock controlled by Mr. Pincus and an affiliated investment entity into an equivalent number of shares of Class A common stock in May 2018. Following the conversion, no shares of Class B or Class C common stock are outstanding and accordingly, the Company calculated basic and dilutive net income (loss) per share under a single-class method for the current period. | ||
Common Class B [Member] | |||
Earnings Per Share Diluted [Line Items] | |||
Common stock, shares outstanding | 0 | 66,767,000 | |
Common Class C [Member] | |||
Earnings Per Share Diluted [Line Items] | |||
Common stock, shares outstanding | 0 | 20,517,000 |
Net Income (Loss) Per Share o_4
Net Income (Loss) Per Share of Common Stock - Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share of Common Stock (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
BASIC: | |||
Net income (loss) attributable to common stockholders – basic | $ 15,457 | $ 26,639 | $ (108,173) |
Weighted-average common shares outstanding – basic | 862,460 | 869,067 | 878,827 |
Net income (loss) per share attributable to common stockholders – basic | $ 0.02 | $ 0.03 | $ (0.12) |
DILUTED: | |||
Weighted-average common shares outstanding – basic | 862,460 | 869,067 | 878,827 |
Weighted-average common shares outstanding – diluted | 889,584 | 897,165 | 878,827 |
Net income (loss) per share attributable to common stockholders – diluted | $ 0.02 | $ 0.03 | $ (0.12) |
Common Class A [Member] | |||
BASIC: | |||
Net income (loss) attributable to common stockholders – basic | $ 15,457 | $ 23,795 | $ (92,988) |
Weighted-average common shares outstanding – basic | 862,460 | 776,625 | 755,460 |
Net income (loss) per share attributable to common stockholders – basic | $ 0.02 | $ 0.03 | $ (0.12) |
DILUTED: | |||
Net income (loss) attributable to common stockholders – basic | $ 15,457 | $ 23,795 | $ (92,988) |
Net income (loss) attributable to common stockholders – diluted | $ 26,628 | $ (108,173) | |
Weighted-average common shares outstanding – basic | 862,460 | 776,625 | 755,460 |
Weighted-average common shares outstanding – diluted | 889,584 | 897,165 | 878,827 |
Net income (loss) per share attributable to common stockholders – diluted | $ 0.02 | $ 0.03 | $ (0.12) |
Common Class A [Member] | Stock Options and Employee Stock Purchase Plan [Member] | |||
DILUTED: | |||
Weighted-average effect of dilutive securities | 10,958 | 9,879 | |
Common Class A [Member] | Restricted Stock Units (ZSUs) [Member] | |||
DILUTED: | |||
Weighted-average effect of dilutive securities | 15,212 | 16,935 | |
Common Class A [Member] | Performance Based Restricted Stock Units (ZSUs) [Member] | |||
DILUTED: | |||
Weighted-average effect of dilutive securities | 954 | 1,284 | |
Common Class A [Member] | Class C Convert to Class A [Member] | |||
DILUTED: | |||
Reallocation of net income (loss) as a result of common stock class conversion | $ 629 | $ (2,525) | |
Conversion of common stock class | 20,517 | 20,517 | |
Common Class A [Member] | Class B Convert to Class A [Member] | |||
DILUTED: | |||
Reallocation of net income (loss) as a result of common stock class conversion | $ 2,204 | $ (12,660) | |
Conversion of common stock class | 71,925 | 102,850 | |
Common Class B [Member] | |||
BASIC: | |||
Net income (loss) attributable to common stockholders – basic | $ 2,204 | $ (12,660) | |
Weighted-average common shares outstanding – basic | 71,925 | 102,850 | |
Net income (loss) per share attributable to common stockholders – basic | $ 0.03 | $ (0.12) | |
DILUTED: | |||
Net income (loss) attributable to common stockholders – basic | $ 2,204 | $ (12,660) | |
Reallocation of net income (loss) to Class B and Class C shares | 180 | ||
Net income (loss) attributable to common stockholders – diluted | $ 2,384 | $ (12,660) | |
Weighted-average common shares outstanding – basic | 71,925 | 102,850 | |
Weighted-average common shares outstanding – diluted | 80,315 | 102,850 | |
Net income (loss) per share attributable to common stockholders – diluted | $ 0.03 | $ (0.12) | |
Common Class B [Member] | Stock Options and Employee Stock Purchase Plan [Member] | |||
DILUTED: | |||
Weighted-average effect of dilutive securities | 8,390 | ||
Common Class C [Member] | |||
BASIC: | |||
Net income (loss) attributable to common stockholders – basic | $ 629 | $ (2,525) | |
Weighted-average common shares outstanding – basic | 20,517 | 20,517 | |
Net income (loss) per share attributable to common stockholders – basic | $ 0.03 | $ (0.12) | |
DILUTED: | |||
Net income (loss) attributable to common stockholders – basic | $ 629 | $ (2,525) | |
Reallocation of net income (loss) to Class B and Class C shares | (20) | ||
Net income (loss) attributable to common stockholders – diluted | $ 609 | $ (2,525) | |
Weighted-average common shares outstanding – basic | 20,517 | 20,517 | |
Weighted-average common shares outstanding – diluted | 20,517 | 20,517 | |
Net income (loss) per share attributable to common stockholders – diluted | $ 0.03 | $ (0.12) |
Net Income (Loss) Per Share o_5
Net Income (Loss) Per Share of Common Stock - Shares Excluded from Calculation of Diluted Net Income (Loss) per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 14,264 | 22,767 | 93,462 |
Stock Options and Employee Stock Purchase Plan [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 6,193 | 17,331 | 28,380 |
Restricted Shares [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 349 | 3,899 | |
Restricted Stock Units (ZSUs) [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 8,071 | 5,087 | 61,183 |
Leases - Addtional Information
Leases - Addtional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2019 | Oct. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Lessor Lease Description [Line Items] | |||||
Rent expense on operating leases | $ 5.5 | $ 5.7 | $ 5.3 | ||
San Francisco, California [Member] | |||||
Lessor Lease Description [Line Items] | |||||
Lease expiration date | Aug. 31, 2031 | Feb. 28, 2027 | |||
Rental payments to be received | $ 145.8 | $ 167.3 | |||
Building occupancy rate by tenant | 43.00% | ||||
Lease incentive obligation to pay for tenant improvements | $ 2.4 | $ 24.9 | |||
Percentage of office space leased | 17.00% | ||||
Lease commencement date | Apr. 30, 2019 | ||||
San Francisco, California [Member] | Scenario, Forecast [Member] | |||||
Lessor Lease Description [Line Items] | |||||
Rental payments to be received | $ 5.1 | ||||
Lease incentive obligation to pay for tenant improvements | $ 0.8 |
Leases - Schedule of Cash to be
Leases - Schedule of Cash to be Received Future Minimum Rentals for Noncancelable Lease Term (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2,019 | $ 16,437 |
2,020 | 24,706 |
2,021 | 30,934 |
2,022 | 31,863 |
2,023 | 32,819 |
Thereafter | 169,869 |
Total | $ 306,628 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments for Operating Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2,019 | $ 8,974 |
2,020 | 8,782 |
2,021 | 7,384 |
2,022 | 3,611 |
2,023 | 2,215 |
Thereafter | 185 |
Total | $ 31,151 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Contractual Royalty Payments to Licensors and Marketing Commitments (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,019 | $ 16,356 |
2,020 | 42,369 |
Total | $ 58,725 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Purchase Commitments (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,019 | $ 23,304 |
2,020 | 19,331 |
2,021 | 8,861 |
Total | $ 51,496 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | Jan. 18, 2019USD ($) | Apr. 04, 2014Case | Mar. 11, 2013Case | Nov. 19, 2012Case | Aug. 16, 2012Case | Aug. 03, 2012Case | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Loss Contingencies [Line Items] | ||||||||
Uncertain tax positions liability, including interest and penalties | $ | $ 10,065 | $ 8,975 | ||||||
Subsequent Event [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Settlement amount | $ | $ 12,000 | |||||||
Fee award to plaintiff’s counsel, amount | $ | 2,300 | |||||||
Settlement proceeds amount received | $ | 12,000 | |||||||
Net settlement proceeds amount received | $ | $ 9,700 | |||||||
Delaware [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Claims filed | 1 | |||||||
Claims settled | 1 | |||||||
Stockholder Derivative Lawsuits [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Claims filed | 8 | |||||||
Zynga Shareholder Derivative Litigation [Member] | San Francisco [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Claims filed | 3 | |||||||
Zynga Inc. Derivative Litigation [Member] | Northern California [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Claims filed | 4 | |||||||
Sandys v. Pincus [Member] | Delaware [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Claims filed | 1 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Small Giant [Member] - Subsequent Event [Member] $ in Millions | Jan. 01, 2019USD ($)shares |
Subsequent Event [Line Items] | |
Business acquisition effective date of acquisition | Jan. 1, 2019 |
Precentage of acquired share capital | 80.00% |
Purchase consideration | $ 594.5 |
Consideration paid in cash | 333.6 |
Business acquisition, retained in escrow | $ 30 |
Business acquisition, escrow period | 18 months |
Business combination percentage of additional cash consideration for remaining shares | 20.00% |
Common Class A [Member] | |
Subsequent Event [Line Items] | |
Consideration transferred by issue of shares, value | $ 230.9 |
Consideration transferred by issue of shares | shares | 63,794,746 |
Number of trading days preceding of agreement | 30 days |
Financial Statement Schedules_2
Financial Statement Schedules - Schedule II - Valuation and Qualifying Accounts (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Valuation And Qualifying Accounts [Abstract] | |
Charges to Expense | $ 3,215 |
Write-Offs, Net of Recoveries | (562) |
Balance at End of Year | $ 2,653 |