Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ZNGA | ||
Entity Registrant Name | Zynga Inc | ||
Entity Central Index Key | 0001439404 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Class A common stock, par value $0.00000625 per share | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 001-35375 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 42-1733483 | ||
Entity Address, Address Line One | 699 Eighth Street | ||
Entity Address, City or Town | San Francisco | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94103 | ||
City Area Code | 855 | ||
Local Phone Number | 449-9642 | ||
Entity Common Stock, Shares Outstanding | 951,550,630 | ||
Entity Public Float | $ 5.3 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the 2020 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. The proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2019. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 423,323 | $ 544,990 |
Short-term investments | 938,173 | 36,232 |
Accounts receivable, net of allowance of $0 at December 31, 2019 and December 31, 2018 | 140,078 | 91,630 |
Restricted cash | 30,006 | 35,006 |
Prepaid expenses | 27,533 | 26,914 |
Other current assets | 16,557 | 12,505 |
Total current assets | 1,575,670 | 747,277 |
Long-term investments | 175,300 | |
Goodwill | 1,460,933 | 934,187 |
Intangible assets, net | 233,005 | 118,600 |
Property and equipment, net | 25,826 | 266,557 |
Right-of-use assets | 136,972 | |
Prepaid expenses | 37,815 | 30,774 |
Other non-current assets | 15,093 | 49,308 |
Total assets | 3,660,614 | 2,146,703 |
Current liabilities: | ||
Accounts payable | 27,799 | 26,811 |
Income tax payable | 649 | 4,895 |
Deferred revenue | 432,962 | 191,299 |
Debt | 100,000 | |
Operating lease liabilities | 15,753 | |
Other current liabilities | 314,805 | 156,829 |
Total current liabilities | 791,968 | 479,834 |
Convertible senior notes, net | 570,456 | |
Deferred revenue | 567 | 1,586 |
Deferred tax liabilities, net | 33,479 | 16,087 |
Non-current operating lease liabilities | 130,301 | |
Other non-current liabilities | 158,413 | 52,586 |
Total liabilities | 1,685,184 | 550,093 |
Stockholders’ equity: | ||
Common stock (Class A), $0.00000625 par value, and additional paid-in capital - authorized shares: 2,020,517; shares outstanding: 950,042 shares as of December 31, 2019 and 861,111 as of December 31, 2018 | 3,898,695 | 3,504,713 |
Accumulated other comprehensive income (loss) | (125,935) | (118,439) |
Accumulated deficit | (1,797,330) | (1,789,664) |
Total stockholders’ equity | 1,975,430 | 1,596,610 |
Total liabilities and stockholders’ equity | $ 3,660,614 | $ 2,146,703 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable, allowance | $ 0 | $ 0 |
Common Class A [Member] | ||
Common stock, par value | $ 0.00000625 | $ 0.00000625 |
Common stock, shares authorized | 2,020,517,000 | 2,020,517,000 |
Common stock, shares outstanding | 950,042,000 | 861,111,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||
Total revenue | $ 1,321,659 | $ 907,208 | $ 861,390 |
Costs and expenses: | |||
Cost of revenue | 524,089 | 304,658 | 258,971 |
Research and development | 505,889 | 270,323 | 256,012 |
Sales and marketing | 464,091 | 226,524 | 212,030 |
General and administrative | 99,790 | 98,941 | 108,653 |
Total costs and expenses | 1,593,859 | 900,446 | 835,666 |
Income (loss) from operations | (272,200) | 6,762 | 25,724 |
Interest income | 14,039 | 6,549 | 5,309 |
Interest expense | (16,971) | (255) | (22) |
Other income (expense), net | 322,467 | 13,407 | 6,572 |
Income (loss) before income taxes | 47,335 | 26,463 | 37,583 |
Provision for (benefit from) income taxes | 5,410 | 11,006 | 10,944 |
Net income (loss) | $ 41,925 | $ 15,457 | $ 26,639 |
Net income (loss) per share attributable to common stockholders: | |||
Basic | $ 0.04 | $ 0.02 | $ 0.03 |
Diluted | $ 0.04 | $ 0.02 | $ 0.03 |
Weighted average common shares used to compute net income (loss) per share attributable to common stockholders: | |||
Basic | 938,709 | 862,460 | 869,067 |
Diluted | 974,020 | 889,584 | 897,165 |
Online Game [Member] | |||
Revenue: | |||
Total revenue | $ 1,047,237 | $ 670,877 | $ 665,593 |
Advertising and Other [Member] | |||
Revenue: | |||
Total revenue | $ 274,422 | $ 236,331 | $ 195,797 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Partners Capital [Abstract] | |||
Net income (loss) | $ 41,925 | $ 15,457 | $ 26,639 |
Other comprehensive income (loss): | |||
Change in foreign currency translation adjustment | (7,773) | (25,122) | 35,352 |
Net change in unrealized gains (losses) on available-for-sale marketable debt securities, net of tax | 277 | 180 | (155) |
Other comprehensive income (loss), net of tax: | (7,496) | (24,942) | 35,197 |
Comprehensive income (loss): | $ 34,429 | $ (9,485) | $ 61,836 |
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, 2016 | $ 1,580,664 | $ 6 | $ 3,349,708 | $ (128,694) | $ (1,640,356) | |
Beginning 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, Value | (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, Value | (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 | |||||
Exercise of stock options and ESPP | 17,488 | 17,488 | ||||
Exercise of stock options and ESPP, Shares | 12,007,000 | |||||
Vesting of ZSUs, net of tax withholdings | (49,591) | (49,591) | ||||
Vesting of ZSUs, net of tax withholdings, Shares | 13,129,000 | |||||
Acquisition-related common stockissuance | 253,904 | $ 1 | 253,903 | |||
Acquisition-related common stock issuance, Shares | 63,795,000 | |||||
Stock-based compensation expense | 81,482 | 81,482 | ||||
Retirements of treasury stock | $ 49,591 | (49,591) | ||||
Equity component of convertible senior notes | 114,938 | 114,938 | ||||
Purchase of capped calls related toissuance of convertible senior notes | (73,830) | (73,830) | ||||
Net income (loss) | 41,925 | 41,925 | ||||
Other comprehensive income (loss) | (7,496) | (7,496) | ||||
Ending balance, Value at Dec. 31, 2019 | $ 1,975,430 | $ 6 | $ 3,898,689 | $ (125,935) | $ (1,797,330) | |
Ending balance, Shares at Dec. 31, 2019 | 950,042,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | ||
Cash flows from operating activities: | |||||
Net income (loss) | $ 41,925 | $ 15,457 | $ 26,639 | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||
Depreciation and amortization | 79,445 | 42,057 | 30,294 | ||
Stock-based compensation expense | 81,482 | 68,239 | 64,515 | ||
(Gain) loss from sale of building, investments and other assets and foreign currency, net | (314,513) | 263 | (238) | ||
(Accretion) amortization on marketable debt securities, net | (4,883) | (2,730) | (636) | ||
Noncash lease expense | 11,167 | ||||
Noncash interest expense | 13,241 | ||||
Noncash consideration received | (1,494) | ||||
Change in deferred income taxes and other | (16,762) | (3,366) | 3,780 | ||
Changes in operating assets and liabilities: | |||||
Accounts receivable, net | (22,546) | 22,625 | (26,417) | ||
Prepaid expenses and other assets | (15,057) | (18,417) | (8,124) | ||
Accounts payable | (1,005) | (810) | (3,666) | ||
Deferred revenue | 234,681 | 62,338 | (7,581) | ||
Income tax payable | (10,176) | (2,116) | 4,788 | ||
Operating lease and other liabilities | 185,829 | (13,806) | 11,021 | ||
Net cash provided by (used in) operating activities | 262,828 | 168,240 | 94,375 | ||
Cash flows from investing activities: | |||||
Purchases of investments | (1,568,216) | (333,832) | (348,594) | ||
Maturities of investments | 451,500 | 519,800 | 40,000 | ||
Sales of investments | 44,890 | 89,168 | |||
Acquisition of property and equipment | (23,637) | (11,469) | (9,971) | ||
Proceeds from sale of building and other property and equipment, net | 580,679 | 33 | 273 | ||
Business acquisitions, net of cash acquired and restricted cash held in escrow | (301,815) | (222,440) | (101,201) | ||
Release of restricted cash escrow from business acquisitions | (35,000) | (22,800) | (3,625) | ||
Other investing activities, net | (266) | 521 | (8,163) | ||
Net cash provided by (used in) investing activities | (851,865) | 18,981 | (431,281) | ||
Cash flows from financing activities: | |||||
Proceeds from issuance of debt, net | 672,152 | 99,100 | |||
Purchase of capped calls | (73,830) | ||||
Repayment of debt | (101,364) | ||||
Taxes paid related to net share settlement of stockholders' equity awards | (49,591) | (25,807) | (21,719) | ||
Repurchases of common stock | (91,570) | (105,013) | |||
Proceeds from issuance of common stock | 17,488 | 9,969 | 8,769 | ||
Acquisition-related contingent consideration payment | (12,900) | (5,115) | |||
Other financing activities, net | (324) | ||||
Net cash provided by (used in) financing activities | 451,631 | (8,308) | (123,078) | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 10,739 | (4,594) | 3,945 | ||
Net change in cash, cash equivalents and restricted cash | (126,667) | 174,319 | (456,039) | ||
Cash, cash equivalents and restricted cash, beginning of period | 579,996 | 405,677 | [1] | 861,716 | |
Cash, cash equivalents and restricted cash, end of period | 453,329 | 579,996 | 405,677 | ||
Supplemental cash flow information: | |||||
Income taxes paid | 22,350 | 16,111 | $ 4,024 | ||
Interest paid | 2,823 | ||||
Noncash investing activities: | |||||
Acquisition-related common stock issuance | $ 253,903 | ||||
Software acquired as noncash consideration | $ 1,494 | ||||
[1] |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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,” “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 Apple’s iOS and Google’s Android, and social networking platforms, such as Facebook and Snapchat. 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 owned subsidiaries. All 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, the discount rate used in discounting our operating lease liabilities, the interest rate used in calculating the present value of the initial liability component of our convertible senior notes, stock-based compensation expense and evaluation of recoverability of goodwill, intangible assets and long-lived assets. Actual results could differ materially from those estimates. 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 derive substantially all of our revenue from the sale of virtual items and advertising associated with our online games. 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 playing period 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 and Facebook local currency payments. 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 ). For the sale of consumable virtual items, we recognize revenue as the items are consumed (i.e., over time), which approximates one month. • Durable virtual items represent items that are accessible to the player over an extended period of time (e.g. animals in Farmville 2 ). We recognize revenue from the sale of durable virtual items ratably over the estimated average playing period of payers for the applicable game (i.e., over time), 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 or 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 to display 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 uncertainty concerning 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 advertisements, 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, which approximates the estimated average playing period of payers, 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 and Facebook local currency payments. 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 immedi ately. 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, corporate debt and certificates of deposit and time deposits with maturities of 90 days or less from the date of purchase. Restricted Cash Restricted cash consists of funds held in escrow in accordance with the terms of our business acquisition agreements. Short and Long-Term Investments Short and long-term debt investments consist of money market funds, corporate debt securities, U.S. government and government agency debt securities and certificates of deposit and time deposits We assess whether an other-than-temporary loss on our debt investments has occurred due to declines in fair value or other market conditions, which requires judgment regarding the amount and timing of recovery. Specifically, when evaluating our debt 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 amortized 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. When we determine that a decline in fair value is other-than-temporary, the amortized 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. No such impairments of our investments have been recorded in any of the periods presented. Short-term equity investments consist of privately held mutual funds. All equity investments are reported at fair value, with unrealized gains and losses recorded within other income (expense), net in our consolidated statement of operations. Realized gains and losses for all investments are determined using the specific-identification method and are reflected as a component of other income (expense), net in the consolidated statements of operations. Fair Value of Financial Instruments Our financial assets consist of cash, cash equivalents, short-term and long-term investments and accounts receivable, net. Cash equivalents, short-term investments and long-term investments are reported at fair value while accounts receivable, net are stated at the net realizable amount, which approximates fair value. Our financial liabilities consist of accounts payable and accrued liabilities, contingent consideration obligations and debt. Accounts payable and accrued liabilities are stated at the invoiced or estimated payout amount, respectively, and approximate fair value. Contingent consideration obligations, which are the result of business acquisitions, are reported at fair value. Our debt is recorded at the net carrying amount, which does not approximate fair value. However, the fair value of the debt is disclosed at each reporting period – refer to Note 10 – “Debt” for further discussion. 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 were valued based on quoted market prices, model driven valuations using significant inputs derived from or corroborated by observable market data or other directly and indirectly inputs observable in the marketplace. 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. 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 coll ection efforts have been exhausted. 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 our property and equipment are as follows: Property and Equipment Useful Life Computer equipment 3 years Software 2 to 3 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 the initial test does not result in substantially all of the fair value concentrated in a single or group of similar assets, 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 indicates 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 consideration 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 each of the estimated fair values at the acquisition date. The excess of the purchase consideration over the 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 after the acquisition date and the changes in the estimated 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 2019, 2018 or 2017. 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 by comparing the estimated fair value of our single reporting unit, determined using the Company’s market capitalization as of the testing date, to its carrying value. For our annual goodwill impairment analysis performed in the fourth quarter of 2019, the result 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, 2019. Definite-Lived Intangible Assets Definite-lived intangible assets consist of 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 t |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 2. Revenue from Contracts with Customers Disaggregation of Revenue The following table presents our revenue disaggregated by platform (in thousands): Year Ended December 31, 2019 2018 2017 (1) Online game: Mobile $ 981,178 $ 590,436 $ 564,629 Other (2) 66,059 80,441 100,964 Online game total $ 1,047,237 $ 670,877 $ 665,593 Advertising and other: Mobile 266,556 225,085 174,867 Other (2) 7,866 11,246 20,930 Advertising and other total $ 274,422 $ 236,331 $ 195,797 Total revenue $ 1,321,659 $ 907,208 $ 861,390 (1) (2) The following table presents our revenue disaggregated based on the geographic location of our payers (in thousands): Year Ended December 31, 2019 2018 2017 (1) United States $ 826,556 $ 593,973 $ 567,315 All other countries (2) 495,103 313,235 294,075 Total revenue $ 1,321,659 $ 907,208 $ 861,390 (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 26%, 43% and 44% of online game revenue in the years ended December 31, 2019, 2018 and 2017, respectively. Durable virtual items accounted for 74%, 57% and 56% of online game revenue in the years ended December 31, 2019, 2018 and 2017, respectively. The estimated weighted average life of durable virtual items was nine months for both the years ended December 31, 2019 and 2018, and eight months during the year ended December 31, 2017. During the year ended December 31, 2019, there was no significant impact from discontinued games or from changes in our estimated average playing period of payers that required adjusting the recognition period of deferred revenue generated in prior periods. 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. 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. Further, payments made by our players are collected by payment processors and remitted to us generally within 30 days. Our right to the payments collected on our behalf are unconditional and therefore recorded as accounts receivable, net of the associated payment processing fees. Payments for advertising arrangements are due based on the contractually stated payment terms. 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, 2019, we recognized all of the revenue that was included in the $191.3 million current deferred revenue balance as of December 31, 2018. The increase in accounts receivable, net during the year ended December 31, 2019 was primarily driven by sales on account during the period exceeding cash collections of current period and previously due amounts, which includes contribution from Small Giant Games Oy (“Small Giant”). The increase in deferred revenue during the year ended December 31, 2019 was primarily driven by the sale of virtual items during the period exceeding revenue recognized from the satisfaction of our performance obligations, which includes the contribution from Small Giant. Unsatisfied Performance Obligations Substantially all of our unsatisfied performance obligations relate to contracts with an original expected length of one year or less. |
Marketable Debt Securities
Marketable Debt Securities | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Marketable Debt Securities | 3. Marketable Debt Securities The following tables summarize the amortized cost, gross unrealized gains and losses and fair value of our short-term and long-term debt securities as of December 31, 2019 and 2018 (in thousands): December 31, 2019 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Short-term debt securities: Corporate debt securities $ 814,817 $ 148 $ (19 ) $ 814,946 U.S. government and government agency debt securities 25,000 — — 25,000 Foreign certificates of deposit and time deposits 53,786 — — 53,786 Total $ 893,603 $ 148 $ (19 ) $ 893,732 Long-term debt securities: Corporate debt securities $ 108,171 $ 118 $ (1 ) $ 108,288 U.S. government and government agency debt securities 66,979 33 — 67,012 Total $ 175,150 $ 151 $ (1 ) $ 175,300 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Short-term debt securities: Corporate debt securities $ 36,230 $ 2 $ — 36,232 Total $ 36,230 $ 2 $ — $ 36,232 As of December 31, 2019, all of our short-term debt securities have contractual maturities of one year or less and all of our long-term debt securities have contractual maturities between one and two years. As of December 31, 2019, we did not consider any of our short-term or long-term debt 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. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements As of December 31, 2019, our contingent consideration obligations represent the estimated fair value of the additional consideration payable in connection with our acquisitions of Gram Games in the second quarter of 2018 and Small Giant in the first quarter of 2019. Under the terms of each acquisition, contingent consideration may be payable based on the achievement of certain future performance targets during each annual period following the respective acquisition date for a total of three years, with no maximum limit as to the contingent consideration achievable. For both acquisitions, we estimated the acquisition date fair value and each subsequent measurement of the contingent consideration obligation using a Monte Carlo simulation. The significant unobservable inputs used in estimating these fair value measurements were each entity’s projected performance, a risk-adjusted discount rate and performance volatility similar to industry peers. Changes in the projected performance of the acquired businesses could result in a higher or lower contingent consideration obligation in the future. Specific to the Gram Games acquisition, the estimated fair value of the contingent consideration obligation increased from $49.0 million as of December 31, 2018 to $78.1 million as of December 31, 2019. The increase was primarily due to stronger than expected performance and the increased probability of achievement, partially offset by the $28.5 million payment to the former owners of Gram Games’ for its performance during the first annual contingent consideration period. For the years ended December 31, 2019 and 2018, we recognized $57.6 million and $5.5 million, respectively, of expense within research and development expenses in our consolidated statement of operations. Specific to the Small Giant acquisition, the estimated fair value of the contingent consideration obligation increased from $98.0 million at the acquisition date to $242.0 million as of December 31, 2019. The increase was primarily due to stronger than expected performance and the increased probability of achievement. For the year ended December 31, 2019, we recognized $144.0 million of expense within research and development expenses in our consolidated statement of operations. The composition of our financial assets and liabilities as of December 31, 2019 and 2018 among the three levels of the fair value hierarchy are as follows (in thousands): December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 625 $ — $ — $ 625 Corporate debt securities — 151,770 — 151,770 Foreign certificates of deposit and time deposits — 3,260 — 3,260 Short-term investments: Corporate debt securities — 814,946 — 814,946 U.S. government and government agency debt securities — 25,000 — 25,000 Foreign certificates of deposit and time deposits — 53,786 — 53,786 Mutual funds — 44,441 — 44,441 Long-term investments: Corporate debt securities — 108,288 — 108,288 U.S. government and government agency debt securities — 67,012 — 67,012 Total financial assets $ 625 $ 1,268,503 $ — $ 1,269,128 Liabilities: Contingent consideration $ — $ — $ 320,100 $ 320,100 Total financial liabilities $ — $ — $ 320,100 $ 320,100 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 Total financial liabilities $ — $ — $ 49,000 $ 49,000 The following table presents the activity for the year ended December 31, 2019 related to our Level 3 liabilities (in thousands): Level 3 Liabilities: Total Contingent consideration obligation – December 31, 2018 $ 49,000 Additions 98,000 Fair value adjustments 201,564 Payments (28,464 ) Contingent consideration obligation – December 31, 2019 $ 320,100 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 5. Property and Equipment, Net On July 1, 2019, the Company sold its San Francisco headquarters (the “Building”) and related land, including all preexisting leases between the Company and third-party tenants of the Building, to a third-party buyer for net proceeds of approximately $580.5 million (the “Building Sale”). In connection with the Building Sale, the Company de-recognized the related land, building and building improvements and all lessor related assets and liabilities, which resulted in a net gain of $314.2 million within other income (expense), net in our consolidated statement of operations. Property and equipment, net consist of the following (in thousands): December 31, December 31, 2019 2018 Computer equipment $ 25,029 $ 20,624 Software 33,932 34,937 Land — 89,130 Building and building improvements — 203,873 Furniture and fixtures 11,567 10,321 Leasehold improvements 19,964 6,144 Total property and equipment, gross $ 90,492 $ 365,029 Less accumulated depreciation (64,666 ) (98,472 ) Total property and equipment, net $ 25,826 $ 266,557 The following represents our property and equipment, net by location (in thousands): December 31, December 31, 2019 2018 United States $ 16,133 $ 262,844 India 5,255 967 United Kingdom 3,223 1,713 All other countries 1,215 1,033 Total property and equipment, net $ 25,826 $ 266,557 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 6. Leases Lessee Arrangements We determine if an arrangement is a lease at contract inception. If there is an identified asset in the contract (either explicitly or implicitly) and we have control over its use, the contract is (or contains) a lease. In determining if there is an identified asset, we apply judgment in assessing whether the supplier has a substantive substitution right based on the supplier’s practical ability to substitute the asset and the economic benefit to do so. If it is determined that a substantive substitution right exists, the contract is not a lease and is not accounted for under ASC Topic 842. With the respect to the servers utilized in certain of our hosting and data storage arrangements, the Company determined that a substantive substitution right existed given the location of the servers at the supplier’s premises, a lack of contractual restrictions preventing the supplier from substituting the servers throughout the period of use and the economic incentive for the supplier to substitute the servers as needed in order to efficiently handle varying levels of demand from its various customers. In connection with the Building Sale, the Company executed a leaseback of approximately 185,000 square feet of the Building over a 12-year term, where we expect to continue operating our headquarters. The agreement provides the Company two separate options to extend the lease for eight years each and a third option to extend the lease for six years (for a total of an additional 22 years). At lease inception, the Company determined it was not reasonably certain to exercise any of the options to extend. The net initial base rent will be approximately $10.7 million for the first year of the lease and may increase by an annual amount not to exceed 3.25% per year. Our remaining operating leases are also primarily for office facilities. Certain leases include options to extend the lease for a set number of years or early terminate the lease prior to the contractually defined expiration date. We include such extension periods in the lease term only when it is reasonably certain that they will be exercised and include such periods beyond the early termination date when it is reasonably certain the early terminations will not be exercised. As of December 31, 2019, the weighted-average remaining lease term for all of our operating leases was 9.9 years. We record right-of-use assets and current and non-current operating lease liabilities in our consolidated balance sheet for operating leases with lease terms greater than 12 months. We have elected not to apply the balance sheet recognition requirements to leases with lease terms of 12 months or less (“short-term leases”). Additionally, we do not separate lease components from non-lease components and therefore allocate the entire consideration to the lease component(s). Right-of-use assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments. Right-of-use assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the total required fixed payments over the lease term, with the right-of-use assets further adjusted for any payments made prior to lease commencement, lease incentives received and/or initial direct costs incurred. Certain lease arrangements also include variable payments for costs such as common-area maintenance, utilities, taxes or other operating costs, which are based on a percentage of actual expenses incurred or a fluctuating rate which is unknown at the inception of the contract. These variable lease payments are excluded from the measurement of the right-of-use assets and lease liabilities. In determining the present value of lease payments, we discount future lease payments using our incremental borrowing rate since the implicit rate in our various leases is unknown. The incremental borrowing rate is determined at lease commencement for each individual lease and is based on a number of factors, including relevant observable debt transactions, the current economic environment, lease term and currency in which the lease is denominated. As of December 31, 2019, the weighted-average incremental borrowing rate for our operating leases was 4.3%. We recognize lease expense for operating leases and short-term leases on a straight-line basis over the lease term. Variable lease payments are recognized when the underlying uncertainty is resolved, which is generally when the obligation for those costs are incurred. These expenses are presented as operating expenses in the consolidated statement of operations. For the year ended December 31, 2019, the components of lease expense were as follows (in thousands): Year Ended December 31, 2019 Operating lease expense $ 15,106 Variable lease expense 4,562 Total lease expense (1) $ 19,668 (1) The expense associated with short-term leases with a lease term greater than one month was not material for the year ended December 31, 2019. For the year ended December 31, 2019, supplemental cash and noncash information related to operating leases, excluding any transition adjustments, was as follows (in thousands): Year Ended December 31, 2019 Fixed operating lease payments $ 16,681 Right-of-use assets obtained in exchange for operating lease liabilities (noncash) 138,905 As of December 31, 2019, future lease payments related to our operating leases were as follows (in thousands): Year ending December 31: Operating Leases 2020 $ 21,753 2021 20,908 2022 17,315 2023 16,591 2024 14,196 Thereafter 90,955 Total lease payments 181,718 Less: Imputed interest (35,664 ) Total lease liability balance $ 146,054 We do not have any leases that have not yet commenced that create significant rights and obligations as of December 31, 2019. During the third quarter of 2018, we executed an assignment of our Oxford office lease associated with our fourth quarter 2017 restructuring plan. The original lease term ends in November 2022. 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. 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 $1.7 million as of December 31, 2019. 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. As of December 31, 2019, the estimated fair value of this guarantee is not material. Lessor Arrangements As noted previously, prior to July 1, 2019, we owned the land and building where our San Francisco headquarters is located and had operating lease arrangements with various third-party tenants for the remaining available office space. However, in connection the Building Sale, effective July 1, 2019, the Company sold all preexisting leases between the Company and its tenants to the buyer. As a result, all lessor related assets and liabilities were de-recognized upon closing. We do not separate lease components from non-lease components and therefore allocate the entire consideration in our contracts to the lease components. All of the lease and non-lease components qualify for accounting under ASC Topic 842. For the year ended December 31, 2019 the components of lease income were as follows (in thousands), all of which was recognized prior to the Building Sale and was recorded within other income (expense), net in our consolidated statement of operations: Year Ended December 31, 2019 Operating lease income $ 10,563 Variable lease income 1,103 Total lease income $ 11,666 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 7. Acquisitions Small Giant Games Acquisition On January 2, 2019, we acquired 80% of all issued and outstanding share capital (including all rights to acquire share capital) of Small Giant Games (“Small Giant”), a Finnish Company, to expand our live service portfolio and new game pipeline, for total purchase consideration of $717.9 million. The remaining 20% will be acquired ratably for potential additional cash consideration payable annually based upon the achievement of specified profitability metrics by Small Giant during each of the three years following the acquisition date. The equity rights and privileges of the remaining Small Giant shareholders lack the traditional rights and privileges associated with equity ownership and accordingly, the transaction is accounted for as if the Company acquired 100% of Small Giant on the acquisition date. Any future payments associated with Zynga’s required acquisition of the remaining 20% represent a contingent consideration obligation. The total purchase consideration included $336.0 million in cash, $30.0 million of cash that was deposited into an escrow account for a period of 18 months as security for general representations and warranties, 63,794,746 shares of our Class A common stock valued at $253.9 million at the acquisition date and contingent consideration of $98.0 million at the acquisition date. The Company records changes in the fair value of the contingent consideration within our consolidated statement of operations in each subsequent reporting period after the acquisition date as they occur (see Note 4 – “Fair Value Measurements” for further discussion on this estimate). Additionally, in connection with the transaction, the Company executed noncompetition agreements with the management of Small Giant 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, intangible assets, assumed liabilities, contingent consideration payable and related goodwill acquired from Small Giant (in thousands): Total Cash $ 34,193 Accounts receivable, net 22,974 Prepaid expenses 2,561 Intangible assets, net: Developed technology, useful life of 5 years 155,000 Trade names, useful life of 7 years 32,000 Goodwill 531,187 Property and equipment, net 180 Right-of-use assets 883 Other non-current assets 120 Total assets acquired 779,098 Accounts payable (1,716 ) Income tax payable (5,623 ) Operating lease liabilities (380 ) Other current liabilities (15,565 ) Deferred tax liabilities, net (37,400 ) Non-current operating lease liabilities (503 ) Total liabilities (61,187 ) Total purchase consideration $ 717,911 Fair value of Zynga Stock Consideration (1) (253,903 ) Non-current contingent consideration payable (98,000 ) Total cash consideration, including cash held in escrow $ 366,008 (1) The fair value of the Zynga Stock Consideration above is estimated based on the total shares issued of 63,794,746 and the closing stock price of Zynga’s Common A stock on January 2, 2019 of $3.98 per share. The fair value of the identified 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 consideration 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 5.3 years at acquisition. The results of operations from Small Giant have been included in our consolidated statement of operations since the date of acquisition. During the year ended December 31, 2019, Small Giant represented $195.9 million of our total revenue and reduced our consolidated net income with $68.3 million of net losses. Transaction costs incurred by the Company in connection with the Small Giant acquisition, including transfer taxes and professional fees, were $7.6 million for the year ended December 31, 2019 and were recorded within general and administrative expenses in our consolidated statements of operations. The following table summarizes the pro forma consolidated information of the Company assuming the acquisition of Small Giant had occurred as of January 1, 2018. The pro forma information for all periods presented includes the business combination accounting effects resulting from the acquisition, including amortization for intangible assets acquired, depreciation expense for tangible assets acquired, and recognition of tax benefits primarily related to the amortization of the intangible asset deferred tax liability. The pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of 2018. Year Ended December 31, 2019 2018 (in thousands) Total revenue $ 1,321,659 $ 1,018,177 Net income (loss) 34,729 (58,829 ) Basic and diluted net income (loss) per share 0.04 (0.06 ) The significant nonrecurring adjustments reflected in the pro forma consolidated information above include the reclassification of the transactions costs and the related income tax impacts incurred after the acquisition to the earliest period presented. Further, the pro forma consolidated net income for the year ended December 31, 2019 includes the $144.0 million of expense recorded to Zynga’s consolidated statement of operations related to the increase in the estimated fair value of the Small Giant contingent consideration obligation. Gram Games 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. The Company records changes in the fair value of the contingent consideration obligation within our consolidated statement of operations in each subsequent reporting period after the acquisition date 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, assumed liabilities, 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 consideration $ 299,414 Non-current contingent consideration payable (43,500 ) Total cash consideration, including cash held in escrow $ 255,914 The fair value of the identified 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 consideration 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. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | 8. Goodwill and Intangible Assets, Net The following table presents the changes to goodwill from December 31, 2017 to December 31, 2019 (in thousands): Goodwill (1) $ 730,464 Additions 224,289 Foreign currency translation adjustments (2) (20,566 ) Goodwill (1) $ 934,187 Additions 531,187 Foreign currency translation adjustments (2) (4,441 ) Goodwill (1) $ 1,460,933 (1) There are no accumulated impairment losses at the beginning or end of any period presented. (2) The change is primarily related to translation adjustments on goodwill associated with the acquisitions of NaturalMotion and Small Giant (2019 activity only), which have functional currencies denominated in British Pounds and Euros, respectively. The details of our acquisition-related intangible assets as of December 31, 2019 and 2018 are as follows (in thousands): December 31, 2019 Gross Carrying Accumulated Net Book Value Amortization Value Developed technology $ 415,466 $ (228,008 ) $ 187,458 Trademarks, branding and domain names 63,800 (18,587 ) 45,213 Noncompetition agreements 8,390 (8,056 ) 334 Total $ 487,656 $ (254,651 ) $ 233,005 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 Our trademarks, branding and domain names intangible assets include $6.1 million of indefinite-lived intangible assets as of December 31, 2019 and December 31, 2018. The remaining assets were, and continue to be, amortized on a straight-line basis. Amortization expense related to other intangible assets for 2019, 2018 and 2017 was $67.0 million, $29.0 million and $16.2 million, respectively. As of December 31, 2019, the weighted-average remaining useful lives of our acquired intangible assets are 3.5 years for developed technology, 5.8 years for trademarks, branding, and domain names, 1.0 years for noncompetition agreements, and 3.9 years for all acquired intangible assets. As of December 31, 2019, future amortization expense related to our intangible assets is as follows (in thousands): Year ending December 31: 2020 $ 65,606 2021 58,078 2022 50,858 2023 40,359 2024 6,718 Thereafter 5,266 Total $ 226,885 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. 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 Income (loss) before income taxes consists of the following for the periods shown below (in thousands): Year Ended December 31, 2019 2018 2017 United States $ 155,887 $ 29,941 $ (6,081 ) International (108,552 ) (3,478 ) 43,664 Total $ 47,335 $ 26,463 $ 37,583 The provision for (benefit from) income taxes consists of the following for the periods shown below (in thousands): Year Ended December 31, 2019 2018 2017 Current tax expense (benefit): Federal $ 11,552 $ 3,918 $ (2,132 ) State 5,387 205 142 Foreign 7,722 11,967 13,562 Total current tax expense (benefit) $ 24,661 $ 16,090 $ 11,572 Deferred tax (benefit) expense: Federal $ 90 $ 1,350 $ (1,231 ) State 560 444 300 Foreign (19,901 ) (6,878 ) 303 Total deferred tax (benefit) expense $ (19,251 ) $ (5,084 ) $ (628 ) Provision for (benefit from) income taxes $ 5,410 $ 11,006 $ 10,944 The reconciliation of federal statutory income tax provision (benefit) to our effective income tax provision is as follows (in thousands): Year Ended December 31, 2019 2018 2017 Expected provision for (benefit from) income taxes at U.S. federal statutory rate (1) $ 9,940 $ 5,557 $ 13,154 State income taxes, net of federal benefit 4,743 205 142 BEAT obligation — 3,918 — Income (loss) taxed at foreign rates 10,292 4,447 (3,643 ) Stock-based compensation (15,683 ) (3,457 ) (2,898 ) Tax reserve for uncertain tax positions 3,174 1,676 3,101 Change in valuation allowance (56,194 ) (5,610 ) (51,976 ) Impact of 2017 Tax Act — — 48,237 Acquisition costs 1,166 536 — Contingent consideration 42,328 1,155 (252 ) Officer's compensation limitation 5,165 2,340 2,582 Investment in subsidiaries — — 1,676 Other 479 239 821 Actual provision for (benefit from) income taxes $ 5,410 $ 11,006 $ 10,944 (1) 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 our foreign subsidiaries, as these amounts continue to be indefinitely reinvested in foreign operations. As of December 31, 2019 and 2018, the cumulative amount of earnings upon which income taxes have not been provided is approximately $87.1 million and $73.0 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, 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 35,546 $ 60,737 Tax credit carryforwards 76,354 103,740 Operating lease liabilities 34,382 — Acquired intangible assets 29,982 28,957 Stock-based compensation 9,251 10,150 Accrued expenses 4,899 3,718 Other accrued compensation 7,297 6,524 Charitable contributions 67 2,533 State taxes 1,547 351 Other 71 — Total deferred tax assets $ 199,396 $ 216,710 Less: Valuation allowance (141,577 ) (205,989 ) Deferred tax assets, net of valuation allowance $ 57,819 $ 10,721 Deferred tax liabilities: Acquired intangible assets $ (37,600 ) $ (11,637 ) Right-of-use assets (34,021 ) — Goodwill (7,131 ) (5,000 ) Deferred rent — (2,334 ) Depreciation — (4,694 ) Convertible debt (9,621 ) — Other (2,275 ) (2,547 ) Total deferred tax liabilities $ (90,648 ) $ (26,212 ) Net deferred taxes $ (32,829 ) $ (15,491 ) 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, 2019. The decrease in the valuation allowance during the year ended December 31, 2019 is primarily related to the use of net operating losses to offset taxable income in 2019, mainly associated with the Building Sale. Net operating loss and tax credit carryforwards as of December 31, 2019 are as follows (in thousands): Amount Expiration years Net operating losses, federal $ 5,991 2030 - 2036 Net operating losses, state 17,384 2020 - 2036 Net operating losses, foreign 13,507 2029 - indefinite Tax credits, federal 100,462 2027 - 2039 Tax credits, state 93,056 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, 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 Additions based on tax positions related to 2019 5,879 Additions for tax positions of prior years 1,888 Decreases related to expiration of prior year tax positions (322 ) December 31, 2019 $ 171,425 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, 2019, $156.6 million of our gross unrecognized tax benefits were recorded as a reduction of the related deferred tax assets and the remaining $14.8 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 $171.4 million as of December 31, 2019 was realized, this would have resulted in a tax benefit of $14.8 million within our provision for income taxes at such time. 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 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 2019, 2018 and 2017, was $0.2 million, $0.2 million and $0.3 million, respectively, and the amount of interest and penalties accrued as of December 31, 2019 and 2018 was $1.1 million and $0.9 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, Ireland and Finland. 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. On June 7, 2019 the U.S. Court of Appeals for the Ninth Circuit (“Ninth Circuit”), issued an opinion in Altera Corp v. Commissioner |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt Convertible Senior Notes On June 14, 2019, we issued $690.0 million aggregate principal amount of 0.25% Convertible Senior Notes due 2024 (the “Notes”), including the initial purchasers’ exercise in full of their option to purchase an additional $90.0 million principal amount of the Notes, in a private placement to qualified institutional buyers in an offering exempt from registration under the Securities Act. The net proceeds from the issuance of the Notes was $672.2 million after deducting transaction costs. The Notes are governed by an indenture (the “Indenture”) between us, as the issuer, and Wells Fargo Bank, National Association, as trustee. The Notes are senior unsecured obligations and rank senior in right of payment to all of our indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment to all of our existing and future liabilities that are not so subordinated; effectively junior to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities of our current or future subsidiaries (including trade payables). The Indenture does not contain any financial covenants. The Notes mature on June 1, 2024 unless earlier converted, redeemed or repurchased in accordance with their term prior to the maturity date. Interest is payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2019. The Notes have an initial conversion rate of 120.3695 shares of our Class A common stock per $1,000 principal amount of Notes, which is equal to an initial conversion price of approximately $8.31 per share of our Class A common stock and is subject to adjustment in certain events. Following certain corporate events that occur prior to the maturity date or following our issuance of a notice of redemption, we will increase the conversion rate for a holder who elects to convert its Notes in connection with such corporate event or during the related redemption period in certain circumstances. Additionally, upon the occurrence of a corporate event that constitutes a “fundamental change” per the Indenture, holders of the Notes may require us to repurchase for cash all or a portion of their Notes at a purchase price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest. Prior to the close of business on the business day immediately preceding March 1, 2024, the Notes will be convertible only under the following circumstances: • during any calendar quarter, if the last reported sale price of our Class A common stock for at least 20 trading days in a period of 30 consecutive trading days ending on the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business-day period after any five consecutive trading-day period in which the trading price per $1,000 principal amount of Notes for such trading day was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate on each such trading day; • if we call the Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or • upon the occurrence of specified corporate events described in the Indenture. On or after March 1, 2024, holders of the Notes may convert all or any portion of their Notes regardless of the foregoing conditions. Upon any conversion, holders will receive cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock, at our election. The Company may not redeem the Notes prior to June 5, 2022. On or after June 5, 2022, the Company may redeem for cash all or any portion of the Notes, at its option, if the last reported sale price of our Class A common stock has been at least 130% of the conversion price for at least 20 trading days during any 30 consecutive trading-day period ending on the immediately preceding date when the Company provides a notice of redemption. The redemption price is equal to 100% of the principal amount of the Notes to be redeemed, plus any accrued and unpaid interest. As of December 31, 2019, the conditions allowing holders of the Notes to convert have not been met and therefore the Notes are not yet convertible. We separately accounted for the liability and equity components of the Notes. We determined the initial carrying amount of the $572.0 million liability component by calculating the present value of the cash flows using an effective interest rate of 4.1%. The interest rate was determined based on non-convertible debt offerings of similar sizes and terms by companies with similar credit ratings (Level 2 inputs). The carrying amount of the equity component, representing the conversion option, was $118.0 million and was calculated by deducting the initial carrying value of the liability component from the principal amount of the Notes as a whole. This difference represents a debt discount that is amortized to interest expense over the 5-year contractual term of the Notes using the effective interest rate method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. We allocated transaction costs related to the issuance of the Notes to the liability and equity components using the same proportions as the initial carrying value of the Notes. Transaction costs initially attributable to the liability component were $14.8 million and are being amortized to interest expense using the effective interest method over the term of the Notes. Transaction costs attributable to the equity component were $3.1 million and are accounted for consistently with the equity component of the debt. The net carrying amount of the liability and equity components of the Notes was as follows (in thousands): December 31, 2019 Liability component: Principal $ 690,000 Unamortized debt discount (106,224 ) Unamortized transaction costs (13,320 ) Net carrying amount $ 570,456 Equity component, net of transaction costs $ 114,938 Interest expense recognized related to the Notes was as follows (in thousands): Year Ended December 31, 2019 Contractual interest expense $ 944 Amortization of debt discount 11,766 Amortization of transaction costs 1,475 Total $ 14,185 As of December 31, 2019, the estimated fair value of the Notes was $706.5 million. We estimated the fair value based on the quoted market prices in an inactive market on the last trading day of the reporting period, which are considered Level 2 inputs. Capped Call Transactions In connection with the offering of the Notes, the Company entered into privately negotiated capped call transactions with certain counterparties (collectively, the “Capped Calls”). The Capped Calls have an initial strike price of approximately $8.31 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The Capped Calls have an initial cap price of $12.54 per share, subject to certain adjustments. The Capped Calls are generally intended to reduce or offset the potential economic dilution of approximately 83.1 million shares to our Class A common stock upon any conversion of the Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. As the Capped Calls are considered indexed to our own stock and are equity classified, they are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of $73.8 million incurred in connection with the Capped Calls was recorded as a reduction to additional paid-in capital. Convertible Senior Notes and Capped Call Transactions – Impact on Earnings per Share The 83.1 million shares underlying the conversion option of the Notes will not have an impact on our diluted earnings per share until the average market price of our Class A common stock exceeds the conversion price of $8.31 per share, as we intend and have the ability to settle the principal amount of the Notes in cash upon conversion. The Company computes the potentially dilutive impact of the shares of Class A common stock related to the Notes using the treasury stock method. Capped Calls are excluded from the calculation of diluted earnings per share, as they would be antidilutive under the treasury stock method. Credit Facility 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 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 one-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. As of December 31, 2019, we had no amounts outstanding under the Credit Facility. Debt issuance costs associated with the Credit Facility were capitalized and are amortized on a straight-line basis over the three-year |
Other Current and Non-Current L
Other Current and Non-Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Current and Non-Current Liabilities | 11. Other Current and Non-Current Liabilities Other current liabilities consist of the following (in thousands): December 31, December 31, 2019 2018 Accrued accounts payable $ 41,443 $ 22,669 Accrued compensation liability 52,495 41,554 Accrued restructuring liability — 3,449 Contingent consideration payable 180,000 17,300 Accrued payable from acquisitions 30,000 35,000 Accrued lease incentive obligation — 24,895 Value-added taxes payable 2,857 2,624 Other current liabilities 8,010 9,338 Total other current liabilities $ 314,805 $ 156,829 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, 2019 2018 Contingent consideration payable $ 140,100 $ 31,700 Accrued restructuring liability — 7,613 Uncertain tax positions liability, including interest and penalties 15,851 10,065 Other non-current liabilities 2,462 3,208 Total other non-current liabilities $ 158,413 $ 52,586 |
Stockholders' Equity and Other
Stockholders' Equity and Other Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
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. 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 repurchase 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 2018 Share 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. During the year ended December 31, 2019, no share repurchases were made. As of December 31, 2019, we had $173.8 million remaining under the 2018 Share Repurchase Program. The 2018 Share Repurchase Program will expire in April 2022 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, 2019 2018 2017 Cost of revenue $ 1,471 $ 1,584 $ 1,838 Research and development 47,049 42,151 42,176 Sales and marketing 11,277 8,495 7,281 General and administrative 21,685 16,009 13,220 Total stock-based compensation expense $ 81,482 $ 68,239 $ 64,515 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, 2019 (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, 2018 36,185 $ 2.35 $ 57,510 6.23 Granted 4,647 5.37 Forfeited, expired and cancelled (42 ) 2.85 Exercised (9,586 ) 0.90 Balance as of December 31, 2019 31,204 $ 3.24 $ 89,786 7.19 As of December 31, 2019 Exercisable options 15,666 $ 2.78 $ 52,363 6.59 Vested and expected to vest 31,204 $ 3.24 $ 89,786 7.19 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, 2019 2018 2017 Expected term, in years 6 6 6 Risk-free interest rates 2.53 % 2.14 % 2.12 % Expected volatility 43 % 47 % 46 % Dividend yield — — — Weighted-average estimated fair value of stock options granted during the year $ 2.41 $ 1.61 $ 1.75 The aggregate intrinsic value of stock options exercised during 2019, 2018 and 2017 was $44.9 million, $6.3 million and $4.9 million, respectively. The total grant date fair value of options that vested during December 31, 2019, 2018 and 2017 was $9.5 million, $6.0 million and $8.0 million, respectively. As of December 31, 2019, total unrecognized stock-based compensation expense of $23.5 million related to unvested stock options is expected to be recognized over a weighted-average recognition period of approximately 2.1 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, 2019 (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, 2018 52,482 $ 3.49 $ 206,254 Granted 14,086 5.61 Vested (21,650 ) 3.43 Forfeited (4,730 ) 3.81 Unvested as of December 31, 2019 40,188 $ 4.23 $ 245,951 As of December 31, 2019, total unamortized stock-based compensation expense relating to ZSUs amounted to $152.7 million over a weighted-average recognition period of approximately 2.4 years. Performance-Based Awards 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. During the years ended December 31, 2019, 2018 and 2017, we recorded $1.2 million, $1.8 million and $2.4 million, respectively, of stock-based compensation expense related to these 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, 2019, there were $3.4 million of employee contributions withheld by the Company. During the year ended December 31, 2019, the Company recognized $3.4 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 2019, 2018 and 2017, 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 this savings plan was $5.8 million, $4.7 million and $4.5 million in 2019, 2018 and 2017, respectively. Common Stock Reserved for Future Issuance As of December 31, 2019, we had reserved shares of common stock for future issuance as follows (in thousands): December 31, 2019 Stock options outstanding 31,204 ZSUs outstanding 40,188 2011 Equity Incentive Plan 152,769 2011 Employee Stock Purchase Plan 122,380 Total 346,541 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
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, 2017 to December 31, 2019 (in thousands): Foreign Currency Translation Unrealized Gains on Available- for-Sale Marketable Debt Securities Total 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), net of tax (25,122 ) 180 (24,942 ) Balance as of December 31, 2018 $ (118,441 ) $ 2 $ (118,439 ) Other comprehensive income (loss) before reclassifications (7,773 ) 277 (7,496 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss), net of tax (7,773 ) 277 (7,496 ) Balance as of December 31, 2019 $ (126,214 ) $ 279 $ (125,935 ) |
Net Income (Loss) Per Share of
Net Income (Loss) Per Share of Common Stock | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 and 2018. 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 we ighted-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 i n our calculation of diluted net income (loss) per share, as the impact of these awards is anti-dilutive. The following tables set 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, 2019 2018 Class A Class A (1) Basic Net income (loss) attributable to common stockholders $ 41,925 $ 15,457 Weighted-average common shares outstanding 938,709 862,460 Net income (loss) per share attributable to common stockholders $ 0.04 $ 0.02 Diluted Net income (loss) attributable to common stockholders – basic $ 41,925 $ 15,457 Weighted-average common shares outstanding – basic 938,709 862,460 Weighted-average effect of dilutive securities: Stock options and employee stock purchase plan 12,960 10,958 ZSUs 22,351 15,212 Performance-based ZSUs — 954 Weighted-average common shares outstanding – diluted 974,020 889,584 Net income (loss) per share attributable to common stockholders – diluted $ 0.04 $ 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 Class Class Class A B C Basic Net income (loss) attributable to common stockholders $ 23,795 $ 2,204 $ 629 Weighted-average common shares outstanding 776,625 71,925 20,517 Net income (loss) per share attributable to common stockholders $ 0.03 $ 0.03 $ 0.03 Diluted Net income (loss) attributable to common stockholders – basic $ 23,795 $ 2,204 $ 629 Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares 629 — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares 2,204 — — 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 Weighted-average common shares outstanding – basic 776,625 71,925 20,517 Conversion of Class C to Class A common shares outstanding 20,517 — — Conversion of Class B to Class A common shares outstanding 71,925 — — 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 Net income (loss) per share attributable to common stockholders – diluted $ 0.03 $ 0.03 $ 0.03 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, 2019 2018 2017 Stock options and employee stock purchase plan 3,718 6,193 17,331 Restricted shares — — 349 ZSUs 580 8,071 5,087 Total 4,298 14,264 22,767 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. 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, 2019, future minimum contractual royalty payments due to licensors and marketing commitments for the licensed products are as follows (in thousands): Year ending December 31: 2020 $ 20,250 2021 9,782 2022 — 2023 10,000 Thereafter — Total $ 40,032 Other Purchase Commitments We have entered into several contracts primarily for hosting of data systems and other services. As of December 31, 2019, future minimum purchase commitments that have initial or remaining non-cancelable terms are as follows (in thousands): Year ending December 31: 2020 $ 30,380 2021 12,813 2022 1,111 Thereafter — Total $ 44,304 Excluded from tables above is our uncertain income tax position liability of $15.9 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. On September 12, 2019, we announced that an incident had occurred that may have involved player data (the “Data Incident”). Upon our discovery of the Data Incident, an investigation immediately commenced and advisors and third-party forensics firms were retained to assist. Our current belief is that, during the third quarter of 2019, outside hackers may have illegally accessed certain player account information and other Zynga information, and that no financi al information was accessed. We have provided notifications to players, investors, regulators and other third parties, where we believe notice was required or appropriate. At this time, we are unable to estimate the loss or range of loss, if any, arising f rom this matter. 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. |
Financial Statement Schedules -
Financial Statement Schedules - Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 $ 2,653 $ 148 $ (2,801 ) $ — Year Ended December 31, 2018 — 3,215 (562 ) 2,653 Year Ended December 31, 2017 — — — — 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, 2019 | |
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 owned subsidiaries. All 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, the discount rate used in discounting our operating lease liabilities, the interest rate used in calculating the present value of the initial liability component of our convertible senior notes, stock-based compensation expense and evaluation of recoverability of goodwill, intangible assets and long-lived assets. Actual results could differ materially from those estimates. |
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 derive substantially all of our revenue from the sale of virtual items and advertising associated with our online games. 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 playing period 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 and Facebook local currency payments. 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 ). For the sale of consumable virtual items, we recognize revenue as the items are consumed (i.e., over time), which approximates one month. • Durable virtual items represent items that are accessible to the player over an extended period of time (e.g. animals in Farmville 2 ). We recognize revenue from the sale of durable virtual items ratably over the estimated average playing period of payers for the applicable game (i.e., over time), 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 or 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 to display 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 uncertainty concerning 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 advertisements, 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, which approximates the estimated average playing period of payers, 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 and Facebook local currency payments. 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 immedi ately. 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, corporate debt and certificates of deposit and time deposits with maturities of 90 days or less from the date of purchase. |
Restricted Cash | Restricted Cash Restricted cash consists of funds held in escrow in accordance with the terms of our business acquisition agreements. |
Short and Long-Term Investments | Short and Long-Term Investments Short and long-term debt investments consist of money market funds, corporate debt securities, U.S. government and government agency debt securities and certificates of deposit and time deposits We assess whether an other-than-temporary loss on our debt investments has occurred due to declines in fair value or other market conditions, which requires judgment regarding the amount and timing of recovery. Specifically, when evaluating our debt 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 amortized 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. When we determine that a decline in fair value is other-than-temporary, the amortized 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. No such impairments of our investments have been recorded in any of the periods presented. Short-term equity investments consist of privately held mutual funds. All equity investments are reported at fair value, with unrealized gains and losses recorded within other income (expense), net in our consolidated statement of operations. Realized gains and losses for all investments are determined using the specific-identification method and are reflected as a component of other income (expense), net in the consolidated statements of operations. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our financial assets consist of cash, cash equivalents, short-term and long-term investments and accounts receivable, net. Cash equivalents, short-term investments and long-term investments are reported at fair value while accounts receivable, net are stated at the net realizable amount, which approximates fair value. Our financial liabilities consist of accounts payable and accrued liabilities, contingent consideration obligations and debt. Accounts payable and accrued liabilities are stated at the invoiced or estimated payout amount, respectively, and approximate fair value. Contingent consideration obligations, which are the result of business acquisitions, are reported at fair value. Our debt is recorded at the net carrying amount, which does not approximate fair value. However, the fair value of the debt is disclosed at each reporting period – refer to Note 10 – “Debt” for further discussion. 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 were valued based on quoted market prices, model driven valuations using significant inputs derived from or corroborated by observable market data or other directly and indirectly inputs observable in the marketplace. 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. |
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 coll ection efforts have been exhausted. 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 our property and equipment are as follows: Property and Equipment Useful Life Computer equipment 3 years Software 2 to 3 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 the initial test does not result in substantially all of the fair value concentrated in a single or group of similar assets, 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 indicates 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 consideration 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 each of the estimated fair values at the acquisition date. The excess of the purchase consideration over the 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 after the acquisition date and the changes in the estimated 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 2019, 2018 or 2017. |
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 by comparing the estimated fair value of our single reporting unit, determined using the Company’s market capitalization as of the testing date, to its carrying value. For our annual goodwill impairment analysis performed in the fourth quarter of 2019, the result 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, 2019. |
Definite-Lived Intangible Assets | Definite-Lived Intangible Assets Definite-lived intangible assets consist of 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 definite-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 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. There were no impairment charges recorded during 2019, 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 Game of Thrones Slots Casino 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 commensurate 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 granted previously. We record stock-based compensation expense for stock options based on the gr ant date fair value on a straight-line basis over the requisite service period of the award. 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. With respect to the Global Intangible Low-Taxed Income (“GILTI”) provisions of the 2017 Tax Cuts and Jobs Act (“2017 Tax Act”), 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. Refer to Note 9 — “Income Taxes” below for further discussion on the impact of the 2017 Tax Act. 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. |
Foreign Currency Transactions | Foreign Currency Transactions Generally, the functional currency of our international subsidiaries is the local currency that the international subsidiary operates in or the U.S. dollar. 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 the 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, cash equivalents, short and long-term investments and accounts receivable. Substantially all of our cash and cash equivalents and short and long-term investments are maintained with five financial institutions with high credit standings. We perform periodic evaluations of the relative credit standing of these institutions. Accounts receivable 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’s ability to meet its financial obligations, we record a specific allowance as a reduction to the accounts 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 2019, 2018 and 2017 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, 2019 and December 31, 2018, 34% and 26% of our accounts receivable, net, respectively, were amounts owed to us by Apple, 33% and 27% of our accounts receivable, net, respectively, were amounts owed to us by Google and 13% and 15% of our accounts receivable, net, respectively, were amounts owed to us by Facebook. |
Advertising Expense | Advertising Expense Costs for marketing and advertising our games are primarily expensed as incurred and are included in sales and marketing expense in our consolidated statement of operations. Such costs, primarily consisting of player acquisition costs, totaled $377.2 million, $157.7 million and $147.2 million for 2019, 2018 and 2017 respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Issued But Not Yet Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” ASC Topic 350-40, Internal-Use Software In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes” Issued And Adopted In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” “Leases (Topic 842) – Targeted Improvements” Adoption Impact – Lessee Accounting The adoption of ASC Topic 842 on January 1, 2019 resulted in the recognition of right-of-use assets of $9.1 million, which includes the elimination of our remaining prepaid rent and deferred rent balances, current operating lease liabilities of $7.6 million and non-current operating lease liabilities of $12.4 million. The adoption of ASC Topic 842 did not impact our consolidated statement of operations or consolidated statement of cash flows. ASC Topic 842 also amends the provisions of ASC Topic 420 – Exit or Disposal Obligations ASC 360 – Property, Plant, and Equipment As part of the adoption, the new standard allows a number of practical expedients and exemptions. At transition, we elected the following: • The package of practical expedients, which allows us to carryforward our historical lease classification, assessment of 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; and • 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. Adoption Impact – Lessor Accounting There was no impact to our financial statements as a result of adopting ASC Topic 842. ASU 2018-11, “Leases (Topic 842) – Targeted Improvements” Refer to Note 6 – “Leases” for further details on our lease arrangements as a lessee and lessor. |
Lessee Arrangements | We determine if an arrangement is a lease at contract inception. If there is an identified asset in the contract (either explicitly or implicitly) and we have control over its use, the contract is (or contains) a lease. In determining if there is an identified asset, we apply judgment in assessing whether the supplier has a substantive substitution right based on the supplier’s practical ability to substitute the asset and the economic benefit to do so. If it is determined that a substantive substitution right exists, the contract is not a lease and is not accounted for under ASC Topic 842. With the respect to the servers utilized in certain of our hosting and data storage arrangements, the Company determined that a substantive substitution right existed given the location of the servers at the supplier’s premises, a lack of contractual restrictions preventing the supplier from substituting the servers throughout the period of use and the economic incentive for the supplier to substitute the servers as needed in order to efficiently handle varying levels of demand from its various customers. In determining the present value of lease payments, we discount future lease payments using our incremental borrowing rate since the implicit rate in our various leases is unknown. The incremental borrowing rate is determined at lease commencement for each individual lease and is based on a number of factors, including relevant observable debt transactions, the current economic environment, lease term and currency in which the lease is denominated. As of December 31, 2019, the weighted-average incremental borrowing rate for our operating leases was 4.3%. |
Debt | We separately accounted for the liability and equity components of the Notes. We determined the initial carrying amount of the $572.0 million liability component by calculating the present value of the cash flows using an effective interest rate of 4.1%. The interest rate was determined based on non-convertible debt offerings of similar sizes and terms by companies with similar credit ratings (Level 2 inputs). The carrying amount of the equity component, representing the conversion option, was $118.0 million and was calculated by deducting the initial carrying value of the liability component from the principal amount of the Notes as a whole. This difference represents a debt discount that is amortized to interest expense over the 5-year contractual term of the Notes using the effective interest rate method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. |
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 2019 and 2018. 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 we ighted-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 i n our calculation of diluted net income (loss) per share, as the impact of these awards is anti-dilutive. |
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, 2019 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and Equipment | The estimated useful lives of our property and equipment are as follows: Property and Equipment Useful Life Computer equipment 3 years Software 2 to 3 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, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregated Revenue | The following table presents our revenue disaggregated by platform (in thousands): Year Ended December 31, 2019 2018 2017 (1) Online game: Mobile $ 981,178 $ 590,436 $ 564,629 Other (2) 66,059 80,441 100,964 Online game total $ 1,047,237 $ 670,877 $ 665,593 Advertising and other: Mobile 266,556 225,085 174,867 Other (2) 7,866 11,246 20,930 Advertising and other total $ 274,422 $ 236,331 $ 195,797 Total revenue $ 1,321,659 $ 907,208 $ 861,390 (1) (2) The following table presents our revenue disaggregated based on the geographic location of our payers (in thousands): Year Ended December 31, 2019 2018 2017 (1) United States $ 826,556 $ 593,973 $ 567,315 All other countries (2) 495,103 313,235 294,075 Total revenue $ 1,321,659 $ 907,208 $ 861,390 (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. |
Marketable Debt Securities (Tab
Marketable Debt Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 and long-term debt securities as of December 31, 2019 and 2018 (in thousands): December 31, 2019 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Short-term debt securities: Corporate debt securities $ 814,817 $ 148 $ (19 ) $ 814,946 U.S. government and government agency debt securities 25,000 — — 25,000 Foreign certificates of deposit and time deposits 53,786 — — 53,786 Total $ 893,603 $ 148 $ (19 ) $ 893,732 Long-term debt securities: Corporate debt securities $ 108,171 $ 118 $ (1 ) $ 108,288 U.S. government and government agency debt securities 66,979 33 — 67,012 Total $ 175,150 $ 151 $ (1 ) $ 175,300 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Aggregate Cost Gains Losses Fair Value Short-term debt securities: Corporate debt securities $ 36,230 $ 2 $ — 36,232 Total $ 36,230 $ 2 $ — $ 36,232 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 among the three levels of the fair value hierarchy are as follows (in thousands): December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 625 $ — $ — $ 625 Corporate debt securities — 151,770 — 151,770 Foreign certificates of deposit and time deposits — 3,260 — 3,260 Short-term investments: Corporate debt securities — 814,946 — 814,946 U.S. government and government agency debt securities — 25,000 — 25,000 Foreign certificates of deposit and time deposits — 53,786 — 53,786 Mutual funds — 44,441 — 44,441 Long-term investments: Corporate debt securities — 108,288 — 108,288 U.S. government and government agency debt securities — 67,012 — 67,012 Total financial assets $ 625 $ 1,268,503 $ — $ 1,269,128 Liabilities: Contingent consideration $ — $ — $ 320,100 $ 320,100 Total financial liabilities $ — $ — $ 320,100 $ 320,100 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 Total financial liabilities $ — $ — $ 49,000 $ 49,000 |
Fair Value Liabilities Measured on Recurring Basis | The following table presents the activity for the year ended December 31, 2019 related to our Level 3 liabilities (in thousands): Level 3 Liabilities: Total Contingent consideration obligation – December 31, 2018 $ 49,000 Additions 98,000 Fair value adjustments 201,564 Payments (28,464 ) Contingent consideration obligation – December 31, 2019 $ 320,100 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 Computer equipment $ 25,029 $ 20,624 Software 33,932 34,937 Land — 89,130 Building and building improvements — 203,873 Furniture and fixtures 11,567 10,321 Leasehold improvements 19,964 6,144 Total property and equipment, gross $ 90,492 $ 365,029 Less accumulated depreciation (64,666 ) (98,472 ) Total property and equipment, net $ 25,826 $ 266,557 |
Property and Equipment, Net | The following represents our property and equipment, net by location (in thousands): December 31, December 31, 2019 2018 United States $ 16,133 $ 262,844 India 5,255 967 United Kingdom 3,223 1,713 All other countries 1,215 1,033 Total property and equipment, net $ 25,826 $ 266,557 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | For the year ended December 31, 2019, the components of lease expense were as follows (in thousands): Year Ended December 31, 2019 Operating lease expense $ 15,106 Variable lease expense 4,562 Total lease expense (1) $ 19,668 |
Schedule of Supplemental Cash Flow and Non-Cash Information Related to Operating Leases Excluding Transition Adjustments | For the year ended December 31, 2019, supplemental cash and noncash information related to operating leases, excluding any transition adjustments, was as follows (in thousands): Year Ended December 31, 2019 Fixed operating lease payments $ 16,681 Right-of-use assets obtained in exchange for operating lease liabilities (noncash) 138,905 |
Schedule of Future Lease Payments Related to Our Operating Leases | As of December 31, 2019, future lease payments related to our operating leases were as follows (in thousands): Year ending December 31: Operating Leases 2020 $ 21,753 2021 20,908 2022 17,315 2023 16,591 2024 14,196 Thereafter 90,955 Total lease payments 181,718 Less: Imputed interest (35,664 ) Total lease liability balance $ 146,054 |
Schedule of Components of Lease Income | For the year ended December 31, 2019 the components of lease income were as follows (in thousands), all of which was recognized prior to the Building Sale and was recorded within other income (expense), net in our consolidated statement of operations: Year Ended December 31, 2019 Operating lease income $ 10,563 Variable lease income 1,103 Total lease income $ 11,666 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Unaudited Pro Forma Financial Information | The pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of 2018. Year Ended December 31, 2019 2018 (in thousands) Total revenue $ 1,321,659 $ 1,018,177 Net income (loss) 34,729 (58,829 ) Basic and diluted net income (loss) per share 0.04 (0.06 ) |
Small Giant [Member] | |
Schedule of Acquisition Price Allocation | The following table summarizes the acquisition date fair value of the tangible assets, intangible assets, assumed liabilities, contingent consideration payable and related goodwill acquired from Small Giant (in thousands): Total Cash $ 34,193 Accounts receivable, net 22,974 Prepaid expenses 2,561 Intangible assets, net: Developed technology, useful life of 5 years 155,000 Trade names, useful life of 7 years 32,000 Goodwill 531,187 Property and equipment, net 180 Right-of-use assets 883 Other non-current assets 120 Total assets acquired 779,098 Accounts payable (1,716 ) Income tax payable (5,623 ) Operating lease liabilities (380 ) Other current liabilities (15,565 ) Deferred tax liabilities, net (37,400 ) Non-current operating lease liabilities (503 ) Total liabilities (61,187 ) Total purchase consideration $ 717,911 Fair value of Zynga Stock Consideration (1) (253,903 ) Non-current contingent consideration payable (98,000 ) Total cash consideration, including cash held in escrow $ 366,008 (1) The fair value of the Zynga Stock Consideration above is estimated based on the total shares issued of 63,794,746 and the closing stock price of Zynga’s Common A stock on January 2, 2019 of $3.98 per share. |
Gram Games [Member] | |
Schedule of Acquisition Price Allocation | The following table summarizes the acquisition date fair value of the tangible assets, assumed liabilities, 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 consideration $ 299,414 Non-current contingent consideration payable (43,500 ) Total cash consideration, including cash held in escrow $ 255,914 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes to Goodwill | The following table presents the changes to goodwill from December 31, 2017 to December 31, 2019 (in thousands): Goodwill (1) $ 730,464 Additions 224,289 Foreign currency translation adjustments (2) (20,566 ) Goodwill (1) $ 934,187 Additions 531,187 Foreign currency translation adjustments (2) (4,441 ) Goodwill (1) $ 1,460,933 (1) There are no accumulated impairment losses at the beginning or end of any period presented. (2) The change is primarily related to translation adjustments on goodwill associated with the acquisitions of NaturalMotion and Small Giant (2019 activity only), which have functional currencies denominated in British Pounds and Euros, respectively. |
Acquisition-Related Intangible Assets | The details of our acquisition-related intangible assets as of December 31, 2019 and 2018 are as follows (in thousands): December 31, 2019 Gross Carrying Accumulated Net Book Value Amortization Value Developed technology $ 415,466 $ (228,008 ) $ 187,458 Trademarks, branding and domain names 63,800 (18,587 ) 45,213 Noncompetition agreements 8,390 (8,056 ) 334 Total $ 487,656 $ (254,651 ) $ 233,005 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 |
Schedule of Finite Lived Intangible Assets Future Amortization Expense | As of December 31, 2019, future amortization expense related to our intangible assets is as follows (in thousands): Year ending December 31: 2020 $ 65,606 2021 58,078 2022 50,858 2023 40,359 2024 6,718 Thereafter 5,266 Total $ 226,885 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 United States $ 155,887 $ 29,941 $ (6,081 ) International (108,552 ) (3,478 ) 43,664 Total $ 47,335 $ 26,463 $ 37,583 |
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, 2019 2018 2017 Current tax expense (benefit): Federal $ 11,552 $ 3,918 $ (2,132 ) State 5,387 205 142 Foreign 7,722 11,967 13,562 Total current tax expense (benefit) $ 24,661 $ 16,090 $ 11,572 Deferred tax (benefit) expense: Federal $ 90 $ 1,350 $ (1,231 ) State 560 444 300 Foreign (19,901 ) (6,878 ) 303 Total deferred tax (benefit) expense $ (19,251 ) $ (5,084 ) $ (628 ) Provision for (benefit from) income taxes $ 5,410 $ 11,006 $ 10,944 |
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, 2019 2018 2017 Expected provision for (benefit from) income taxes at U.S. federal statutory rate (1) $ 9,940 $ 5,557 $ 13,154 State income taxes, net of federal benefit 4,743 205 142 BEAT obligation — 3,918 — Income (loss) taxed at foreign rates 10,292 4,447 (3,643 ) Stock-based compensation (15,683 ) (3,457 ) (2,898 ) Tax reserve for uncertain tax positions 3,174 1,676 3,101 Change in valuation allowance (56,194 ) (5,610 ) (51,976 ) Impact of 2017 Tax Act — — 48,237 Acquisition costs 1,166 536 — Contingent consideration 42,328 1,155 (252 ) Officer's compensation limitation 5,165 2,340 2,582 Investment in subsidiaries — — 1,676 Other 479 239 821 Actual provision for (benefit from) income taxes $ 5,410 $ 11,006 $ 10,944 (1) |
Schedule of Deferred Tax Assets and Liabilities | Our deferred tax assets and liabilities are as follows (in thousands): December 31, December 31, 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 35,546 $ 60,737 Tax credit carryforwards 76,354 103,740 Operating lease liabilities 34,382 — Acquired intangible assets 29,982 28,957 Stock-based compensation 9,251 10,150 Accrued expenses 4,899 3,718 Other accrued compensation 7,297 6,524 Charitable contributions 67 2,533 State taxes 1,547 351 Other 71 — Total deferred tax assets $ 199,396 $ 216,710 Less: Valuation allowance (141,577 ) (205,989 ) Deferred tax assets, net of valuation allowance $ 57,819 $ 10,721 Deferred tax liabilities: Acquired intangible assets $ (37,600 ) $ (11,637 ) Right-of-use assets (34,021 ) — Goodwill (7,131 ) (5,000 ) Deferred rent — (2,334 ) Depreciation — (4,694 ) Convertible debt (9,621 ) — Other (2,275 ) (2,547 ) Total deferred tax liabilities $ (90,648 ) $ (26,212 ) Net deferred taxes $ (32,829 ) $ (15,491 ) |
Summary of Net Operating Loss and Tax Credit Carryforwards | Net operating loss and tax credit carryforwards as of December 31, 2019 are as follows (in thousands): Amount Expiration years Net operating losses, federal $ 5,991 2030 - 2036 Net operating losses, state 17,384 2020 - 2036 Net operating losses, foreign 13,507 2029 - indefinite Tax credits, federal 100,462 2027 - 2039 Tax credits, state 93,056 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, 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 Additions based on tax positions related to 2019 5,879 Additions for tax positions of prior years 1,888 Decreases related to expiration of prior year tax positions (322 ) December 31, 2019 $ 171,425 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Net Carrying Amount of Liability and Equity Components of Notes | The net carrying amount of the liability and equity components of the Notes was as follows (in thousands): December 31, 2019 Liability component: Principal $ 690,000 Unamortized debt discount (106,224 ) Unamortized transaction costs (13,320 ) Net carrying amount $ 570,456 Equity component, net of transaction costs $ 114,938 |
Schedule of Interest Expense Recognized Related to Notes | Interest expense recognized related to the Notes was as follows (in thousands): Year Ended December 31, 2019 Contractual interest expense $ 944 Amortization of debt discount 11,766 Amortization of transaction costs 1,475 Total $ 14,185 |
Other Current and Non-Current_2
Other Current and Non-Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): December 31, December 31, 2019 2018 Accrued accounts payable $ 41,443 $ 22,669 Accrued compensation liability 52,495 41,554 Accrued restructuring liability — 3,449 Contingent consideration payable 180,000 17,300 Accrued payable from acquisitions 30,000 35,000 Accrued lease incentive obligation — 24,895 Value-added taxes payable 2,857 2,624 Other current liabilities 8,010 9,338 Total other current liabilities $ 314,805 $ 156,829 |
Schedule of Other Non-Current Liabilities | Other non-current liabilities consist of the following (in thousands): December 31, December 31, 2019 2018 Contingent consideration payable $ 140,100 $ 31,700 Accrued restructuring liability — 7,613 Uncertain tax positions liability, including interest and penalties 15,851 10,065 Other non-current liabilities 2,462 3,208 Total other non-current liabilities $ 158,413 $ 52,586 |
Stockholders' Equity and Othe_2
Stockholders' Equity and Other Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Cost of revenue $ 1,471 $ 1,584 $ 1,838 Research and development 47,049 42,151 42,176 Sales and marketing 11,277 8,495 7,281 General and administrative 21,685 16,009 13,220 Total stock-based compensation expense $ 81,482 $ 68,239 $ 64,515 |
Schedule of Share Based Compensation Stock Option Activity | The following table shows stock option activity for the year ended December 31, 2019 (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, 2018 36,185 $ 2.35 $ 57,510 6.23 Granted 4,647 5.37 Forfeited, expired and cancelled (42 ) 2.85 Exercised (9,586 ) 0.90 Balance as of December 31, 2019 31,204 $ 3.24 $ 89,786 7.19 As of December 31, 2019 Exercisable options 15,666 $ 2.78 $ 52,363 6.59 Vested and expected to vest 31,204 $ 3.24 $ 89,786 7.19 |
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, 2019 2018 2017 Expected term, in years 6 6 6 Risk-free interest rates 2.53 % 2.14 % 2.12 % Expected volatility 43 % 47 % 46 % Dividend yield — — — Weighted-average estimated fair value of stock options granted during the year $ 2.41 $ 1.61 $ 1.75 |
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, 2019 (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, 2018 52,482 $ 3.49 $ 206,254 Granted 14,086 5.61 Vested (21,650 ) 3.43 Forfeited (4,730 ) 3.81 Unvested as of December 31, 2019 40,188 $ 4.23 $ 245,951 |
Common Stock Reserved For Future Issuance | As of December 31, 2019, we had reserved shares of common stock for future issuance as follows (in thousands): December 31, 2019 Stock options outstanding 31,204 ZSUs outstanding 40,188 2011 Equity Incentive Plan 152,769 2011 Employee Stock Purchase Plan 122,380 Total 346,541 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2017 to December 31, 2019 (in thousands): Foreign Currency Translation Unrealized Gains on Available- for-Sale Marketable Debt Securities Total 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), net of tax (25,122 ) 180 (24,942 ) Balance as of December 31, 2018 $ (118,441 ) $ 2 $ (118,439 ) Other comprehensive income (loss) before reclassifications (7,773 ) 277 (7,496 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — Net other comprehensive income (loss), net of tax (7,773 ) 277 (7,496 ) Balance as of December 31, 2019 $ (126,214 ) $ 279 $ (125,935 ) |
Net Income (Loss) Per Share o_2
Net Income (Loss) Per Share of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share of Common Stock | The following tables set 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, 2019 2018 Class A Class A (1) Basic Net income (loss) attributable to common stockholders $ 41,925 $ 15,457 Weighted-average common shares outstanding 938,709 862,460 Net income (loss) per share attributable to common stockholders $ 0.04 $ 0.02 Diluted Net income (loss) attributable to common stockholders – basic $ 41,925 $ 15,457 Weighted-average common shares outstanding – basic 938,709 862,460 Weighted-average effect of dilutive securities: Stock options and employee stock purchase plan 12,960 10,958 ZSUs 22,351 15,212 Performance-based ZSUs — 954 Weighted-average common shares outstanding – diluted 974,020 889,584 Net income (loss) per share attributable to common stockholders – diluted $ 0.04 $ 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 Class Class Class A B C Basic Net income (loss) attributable to common stockholders $ 23,795 $ 2,204 $ 629 Weighted-average common shares outstanding 776,625 71,925 20,517 Net income (loss) per share attributable to common stockholders $ 0.03 $ 0.03 $ 0.03 Diluted Net income (loss) attributable to common stockholders – basic $ 23,795 $ 2,204 $ 629 Reallocation of net income (loss) as a result of conversion of Class C shares to Class A shares 629 — — Reallocation of net income (loss) as a result of conversion of Class B shares to Class A shares 2,204 — — 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 Weighted-average common shares outstanding – basic 776,625 71,925 20,517 Conversion of Class C to Class A common shares outstanding 20,517 — — Conversion of Class B to Class A common shares outstanding 71,925 — — 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 Net income (loss) per share attributable to common stockholders – diluted $ 0.03 $ 0.03 $ 0.03 |
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, 2019 2018 2017 Stock options and employee stock purchase plan 3,718 6,193 17,331 Restricted shares — — 349 ZSUs 580 8,071 5,087 Total 4,298 14,264 22,767 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019, future minimum contractual royalty payments due to licensors and marketing commitments for the licensed products are as follows (in thousands): Year ending December 31: 2020 $ 20,250 2021 9,782 2022 — 2023 10,000 Thereafter — Total $ 40,032 |
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, 2019, future minimum purchase commitments that have initial or remaining non-cancelable terms are as follows (in thousands): Year ending December 31: 2020 $ 30,380 2021 12,813 2022 1,111 Thereafter — Total $ 44,304 |
Overview and Summary of Signi_4
Overview and Summary of Significant Accounting Policies - Additional Information (Detail) | Jan. 01, 2019USD ($) | Dec. 31, 2019USD ($)SegmentFinancial_Institution | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Initial offering period | December 2011 | |||
Operating segment | Segment | 1 | |||
Reportable segment | Segment | 1 | |||
Impairments of short-term investments | $ 0 | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |
Number of financial institutions in which cash equivalents and securities held | Financial_Institution | 5 | |||
Advertising expense | $ 377,200,000 | $ 157,700,000 | $ 147,200,000 | |
Right-of-use assets | 136,972,000 | |||
Current operating lease liabilities | 15,753,000 | |||
Non-current operating lease liabilities | 130,301,000 | |||
Lease liability recognized | $ 146,054,000 | |||
ASU 2016-02 [Member] | ||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Right-of-use assets | $ 9,100,000 | |||
Current operating lease liabilities | 7,600,000 | |||
Non-current operating lease liabilities | 12,400,000 | |||
Derecognize restructuring plan liability | 10,900,000 | |||
Lease liability recognized | $ 10,900,000 | |||
Operating lease, term | 12 months | |||
Lease and non lease component, description | the lessor practical expedient is limited to circumstances in which the nonlease component or components otherwise would be accounted for under the new revenue guidance and both (i) the timing and pattern of transfer are the same for the nonlease component(s) and associated lease component and (ii) the lease component, if accounted for separately, would be classified as an operating lease. | |||
Facebook [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Entity wide accounts receivables major customer percentage | 13.00% | 15.00% | ||
Google [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Entity wide accounts receivables major customer percentage | 33.00% | 27.00% | ||
Apple [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Entity wide accounts receivables major customer percentage | 34.00% | 26.00% | ||
Acquired Intangible Assets [Member] | ||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | ||||
Impairment of intangible assets | $ 0 | $ 0 | $ 0 | |
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 |
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, 2019 | |
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 |
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 - Summary of Revenue Disaggregated by Platform (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 1,321,659 | $ 907,208 | $ 861,390 |
Mobile Online Game [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 981,178 | 590,436 | 564,629 |
Other Online game [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 66,059 | 80,441 | 100,964 |
Online Game [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 1,047,237 | 670,877 | 665,593 |
Mobile Advertising and Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 266,556 | 225,085 | 174,867 |
Web Advertising and Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 7,866 | 11,246 | 20,930 |
Advertising and Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 274,422 | $ 236,331 | $ 195,797 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Revenue disaggregated Based on Geographic Location (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 1,321,659 | $ 907,208 | $ 861,390 |
United States [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 826,556 | 593,973 | 567,315 |
All Other Countries [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 495,103 | $ 313,235 | $ 294,075 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||
Discontinued online game revenue and income from operations | $ 900,000 | $ 1,300,000 | |
Changes in revenue from adjustments of prior period deferred revenue | $ 0 | ||
Discontinued game revenue from adjustments of prior period deferred revenue | $ 0 | $ 0 | |
Current deferred revenue recognized | $ 191,300,000 | ||
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 | 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 | 26.00% | 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 | 74.00% | 57.00% | 56.00% |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Additional Information (Detail1) | Dec. 31, 2019 |
Maximum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Expected length of unsatisfaction of performance obligations | 1 year |
Marketable Debt Securities - Su
Marketable Debt Securities - Summary of Available-for-Sale Short-Term Investments Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 893,603 | $ 36,230 |
Gross Unrealized Gains | 148 | 2 |
Gross Unrealized Losses | (19) | |
Aggregate Fair Value | 893,732 | 36,232 |
Long-term Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 175,150 | |
Gross Unrealized Gains | 151 | |
Gross Unrealized Losses | (1) | |
Aggregate Fair Value | 175,300 | |
Corporate Debt Securities [Member] | Short-term Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 814,817 | 36,230 |
Gross Unrealized Gains | 148 | 2 |
Gross Unrealized Losses | (19) | |
Aggregate Fair Value | 814,946 | $ 36,232 |
Corporate Debt Securities [Member] | Long-term Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 108,171 | |
Gross Unrealized Gains | 118 | |
Gross Unrealized Losses | (1) | |
Aggregate Fair Value | 108,288 | |
U.S. Goverment and Goverment Agency Debt Securities [Member] | Short-term Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 25,000 | |
Aggregate Fair Value | 25,000 | |
U.S. Goverment and Goverment Agency Debt Securities [Member] | Long-term Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 66,979 | |
Gross Unrealized Gains | 33 | |
Aggregate Fair Value | 67,012 | |
Foreign Certificates of Deposit and Time Deposits [Member] | Short-term Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 53,786 | |
Aggregate Fair Value | $ 53,786 |
Marketable Debt Securities - Ad
Marketable Debt Securities - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Maximum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale short-term debt investments period of contractual maturities | 1 year |
Available-for-sale short-term debt investments period of contractual maturities | 2 years |
Minimum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale short-term debt investments period of contractual maturities | 1 year |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | May 25, 2018 | |
Research and Development Expense [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration obligation, expense recognized | $ 144 | ||
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 | $ 78.1 | $ 49 | $ 43.5 |
Business Combination, Contingent Consideration, Liability | 28.5 | ||
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 | $ 57.6 | 5.5 | |
Small Giant [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration payable, total years | 3 years | ||
Contingent consideration obligation | $ 242 | $ 98 | |
Small Giant [Member] | Research and Development Expense [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration obligation, expense recognized | $ 144 |
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, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | $ 1,269,128 | $ 41,784 |
Liabilities Fair Value Disclosure Recurring | 320,100 | 49,000 |
Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 320,100 | 49,000 |
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 | 625 | 565 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 625 | 565 |
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 | 625 | 565 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 1,268,503 | 41,219 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 320,100 | 49,000 |
Fair Value, Inputs, Level 3 [Member] | Contingent Consideration [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Fair Value Disclosure Recurring | 320,100 | 49,000 |
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 | 814,946 | 36,232 |
Corporate Debt Securities [Member] | Long-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 108,288 | |
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 | 151,770 | 4,987 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 814,946 | 36,232 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Long-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 108,288 | |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 151,770 | $ 4,987 |
Foreign Certificates Of Deposit And Time [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 53,786 | |
Foreign Certificates Of Deposit And Time [Member] | Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 3,260 | |
Foreign Certificates Of Deposit And Time [Member] | Fair Value, Inputs, Level 2 [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 53,786 | |
Foreign Certificates Of Deposit And Time [Member] | Fair Value, Inputs, Level 2 [Member] | Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 3,260 | |
U.S. Government and Government Agency 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 | 25,000 | |
U.S. Government and Government Agency Debt Securities [Member] | Long-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 67,012 | |
U.S. Government and Government Agency Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 25,000 | |
U.S. Government and Government Agency Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Long-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 67,012 | |
Mutual Funds [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | 44,441 | |
Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member] | Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Fair Value Disclosure Recurring | $ 44,441 |
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, 2019USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration obligation – December 31, 2018 | $ 49,000 |
Additions | 98,000 |
Fair value adjustments | 201,564 |
Payments | (28,464) |
Contingent consideration obligation – December 31, 2019 | $ 320,100 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Abstract] | ||||
Net proceeds from sale of buildings | $ 580,500 | |||
Other income (expense), net | $ 314,200 | $ 322,467 | $ 13,407 | $ 6,572 |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 90,492 | $ 365,029 |
Less accumulated depreciation | (64,666) | (98,472) |
Total property and equipment, net | 25,826 | 266,557 |
Computer Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 25,029 | 20,624 |
Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 33,932 | 34,937 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 89,130 | |
Building and Building Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 203,873 | |
Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 11,567 | 10,321 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 19,964 | $ 6,144 |
Property and Equipment, Net - P
Property and Equipment, Net - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 25,826 | $ 266,557 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 16,133 | 262,844 |
India [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 5,255 | 967 |
United Kingdom [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 3,223 | 1,713 |
All Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 1,215 | $ 1,033 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)ft² | |
Lessor Lease Description [Line Items] | |
Operating Lease, weighted average remaining lease term | 9 years 10 months 24 days |
Operating lease, weighted average incremental borrowing rate | 4.30% |
Q4 2017 Restructuring Plan [Member] | |
Lessor Lease Description [Line Items] | |
Lease term expiration | 2022-11 |
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. |
Estimated maximum exposure of the guarantee | $ 1.7 |
Leaseback Agreement [Member] | |
Lessor Lease Description [Line Items] | |
Lease back building | ft² | 185,000 |
Operating lease, term | 12 years |
Lease option to extend | true |
Lease option to extend term | 22 years |
Operating lease rent | $ 10.7 |
Leaseback Agreement [Member] | Maximum [Member] | |
Lessor Lease Description [Line Items] | |
Percentage of increase by an annual amount of rent | 3.25% |
Leaseback Agreement [Member] | First Option To Extend Lease [Member] | |
Lessor Lease Description [Line Items] | |
Lease option to extend term | 8 years |
Leaseback Agreement [Member] | Second Option To Extend Lease [Member] | |
Lessor Lease Description [Line Items] | |
Lease option to extend term | 8 years |
Leaseback Agreement [Member] | Third Option To Extend Lease [Member] | |
Lessor Lease Description [Line Items] | |
Lease option to extend term | 6 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 15,106 |
Variable lease expense | 4,562 |
Total lease expense | $ 19,668 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow and Non-Cash Information Related to Operating Leases Excluding Transition Adjustments (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Fixed operating lease payments | $ 16,681 |
Right-of-use assets obtained in exchange for operating lease liabilities (noncash) | $ 138,905 |
Leases - Schedule of Future Lea
Leases - Schedule of Future Lease Payments Related to Our Operating Leases (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 21,753 |
2021 | 20,908 |
2022 | 17,315 |
2023 | 16,591 |
2024 | 14,196 |
Thereafter | 90,955 |
Total lease payments | 181,718 |
Less: Imputed interest | (35,664) |
Total lease liability balance | 146,054 |
Total lease payments | $ 181,718 |
Leases - Schedule of Componen_2
Leases - Schedule of Components of Lease Income (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease income | $ 10,563 |
Variable lease income | 1,103 |
Total lease income | $ 11,666 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 02, 2019 | May 25, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||||||
Weighted average amortization period of acquired intangible assets | 3 years 10 months 24 days | |||||
Total revenue | $ 1,321,659 | $ 907,208 | $ 861,390 | |||
Net income (loss) | 41,925 | 15,457 | 26,639 | |||
Research and Development Expense [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration obligation, expense recognized | $ 144,000 | |||||
Noncompetition Agreements [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average amortization period of acquired intangible assets | 1 year | |||||
Common Class A [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Net income (loss) | $ 41,925 | 15,457 | $ 23,795 | |||
Small Giant [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition effective date of acquisition | Jan. 2, 2019 | |||||
Percentage of acquired equity interest | 80.00% | 100.00% | ||||
Business acquisition, cost of acquired entity | $ 717,900 | |||||
Percentage of potential consideration acquired | 20.00% | |||||
Business acquisition, cost of acquired entity upfront cash paid | $ 336,000 | |||||
Business acquisition, retained in escrow | $ 30,000 | |||||
Business acquisition, escrow period | 18 months | |||||
Fair value of Zynga Stock Consideration issued | [1] | $ 253,903 | ||||
Consideration consideration | $ 98,000 | |||||
Percentage of step in period equity interest acquired | 20.00% | |||||
Business acquisition cash consideration payable step in period | 3 years | |||||
Weighted average amortization period of acquired intangible assets | 5 years 3 months 18 days | |||||
Total revenue | $ 195,900 | |||||
Net income (loss) | $ 68,300 | |||||
Percentage of acquired equity interest | 80.00% | 100.00% | ||||
Business acquisition, retained in escrow | $ 30,000 | |||||
Estimated amount allocated to business combination | $ 366,008 | |||||
Remaining purchase contingent consideration | $ 242,000 | 98,000 | ||||
Small Giant [Member] | General and Administrative Expense [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Professional fees and transaction taxes | 7,600 | |||||
Small Giant [Member] | Research and Development Expense [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration obligation, expense recognized | 144,000 | |||||
Small Giant [Member] | Noncompetition Agreements [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful lives of intangible assets | 3 years | |||||
Intangible assets, useful life | 3 years | |||||
Small Giant [Member] | Common Class A [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition consideration by shares | 63,794,746 | |||||
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 | |||||
Business acquisition, cost of acquired entity upfront cash paid | 230,900 | |||||
Business acquisition, retained in escrow | $ 25,000 | |||||
Business acquisition, escrow period | 18 months | |||||
Consideration consideration | $ 43,500 | |||||
Weighted average amortization period of acquired intangible assets | 4 years 8 months 12 days | |||||
Percentage of acquired equity interest | 100.00% | |||||
Business acquisition, retained in escrow | $ 25,000 | |||||
Estimated amount allocated to business combination | 255,914 | |||||
Remaining purchase contingent consideration | $ 43,500 | 78,100 | 49,000 | |||
Potential future payments maximum period | 3 years | |||||
Gram Games [Member] | General and Administrative Expense [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Professional fees and transaction taxes | 1,700 | |||||
Gram Games [Member] | Research and Development Expense [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration obligation, expense recognized | $ 57,600 | $ 5,500 | ||||
Gram Games [Member] | Noncompetition Agreements [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful lives of intangible assets | 3 years | |||||
Intangible assets, useful life | 3 years | |||||
[1] | The fair value of the Zynga Stock Consideration above is estimated based on the total shares issued of 63,794,746 and the closing stock price of Zynga’s Common A stock on January 2, 2019 of $3.98 per share. |
Acquisitions - Schedule of Acqu
Acquisitions - Schedule of Acquisition Price Allocation (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | May 25, 2018 | Dec. 31, 2017 | |
Intangible assets, net: | ||||||
Goodwill | $ 1,460,933 | $ 934,187 | $ 730,464 | |||
Small Giant [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 34,193 | |||||
Accounts receivable, net | 22,974 | |||||
Prepaid expenses | 2,561 | |||||
Intangible assets, net: | ||||||
Goodwill | 531,187 | |||||
Property and equipment, net | 180 | |||||
Right-of-use assets | 883 | |||||
Other non-current assets | 120 | |||||
Total assets acquired | 779,098 | |||||
Accounts payable | (1,716) | |||||
Income tax payable | (5,623) | |||||
Operating lease liabilities | (380) | |||||
Other current liabilities | (15,565) | |||||
Deferred tax liabilities, net | (37,400) | |||||
Non-current operating lease liabilities | (503) | |||||
Total liabilities | (61,187) | |||||
Total purchase consideration | 717,911 | |||||
Fair value of Zynga Stock Consideration issued(1) | [1] | (253,903) | ||||
Non-current contingent consideration payable | (98,000) | |||||
Total cash consideration, including cash held in escrow | 366,008 | |||||
Accounts receivable, net | 22,974 | |||||
Small Giant [Member] | Developed Technology, Useful Life of 5 Years [Member] | ||||||
Intangible assets, net: | ||||||
Intangible assets, net: | 155,000 | |||||
Small Giant [Member] | Trade Names, Useful Life of 7 Years [Member] | ||||||
Intangible assets, net: | ||||||
Intangible assets, net: | $ 32,000 | |||||
Gram Games [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 8,474 | |||||
Accounts receivable, net | 10,747 | |||||
Prepaid expenses | 279 | |||||
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 | (30,039) | |||||
Total purchase consideration | 299,414 | |||||
Non-current contingent consideration payable | (43,500) | |||||
Total cash consideration, including cash held in escrow | 255,914 | |||||
Accounts receivable, net | 10,747 | |||||
Other current assets | 937 | |||||
Gram Games [Member] | Developed Technology, Useful Life of 5 Years [Member] | ||||||
Intangible assets, net: | ||||||
Intangible assets, net: | 43,000 | |||||
Gram Games [Member] | Trade Names, Useful Life of 7 Years [Member] | ||||||
Intangible assets, net: | ||||||
Intangible assets, net: | 14,000 | |||||
Gram Games [Member] | Developed Technology, Useful Life of 3 Years [Member] | ||||||
Intangible assets, net: | ||||||
Intangible assets, net: | 26,000 | |||||
Gram Games [Member] | Trade Names, Useful Life of 3 Years [Member] | ||||||
Intangible assets, net: | ||||||
Intangible assets, net: | $ 500 | |||||
[1] | The fair value of the Zynga Stock Consideration above is estimated based on the total shares issued of 63,794,746 and the closing stock price of Zynga’s Common A stock on January 2, 2019 of $3.98 per share. |
Acquisitions - Schedule of Ac_2
Acquisitions - Schedule of Acquisition Price Allocation (Parenthetical) (Detail) - $ / shares | Jan. 02, 2019 | May 25, 2018 |
Small Giant [Member] | Common Class A [Member] | ||
Business Acquisition [Line Items] | ||
Consideration transferred by issue of shares | 63,794,746 | |
Shares issued, price per share | $ 3.98 | |
Small Giant [Member] | Developed Technology, Useful Life of 5 Years [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets, useful life | 5 years | |
Small Giant [Member] | Trade Names, Useful Life of 7 Years [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets, useful life | 7 years | |
Gram Games [Member] | Developed Technology, Useful Life of 5 Years [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets, useful life | 5 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] | 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 3 Years [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets, useful life | 3 years |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro Forma Financial Information (Detail) - Small Giant [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Total revenue | $ 1,321,659 | $ 1,018,177 |
Net income (loss) | $ 34,729 | $ (58,829) |
Basic and diluted net income (loss) per share | $ 0.04 | $ (0.06) |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Schedule of Changes to Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill Roll Forward | ||
Goodwill, beginning balance | $ 934,187 | $ 730,464 |
Additions | 531,187 | 224,289 |
Foreign currency translation adjustments | (4,441) | (20,566) |
Goodwill, ending balance | $ 1,460,933 | $ 934,187 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Schedule of Changes to Goodwill (Parenthetical) (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
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, 2019 | Dec. 31, 2018 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 487,656 | $ 310,590 |
Accumulated Amortization | (254,651) | (191,990) |
Net Book Value | 233,005 | 118,600 |
Developed Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 415,466 | 263,720 |
Accumulated Amortization | (228,008) | (167,664) |
Net Book Value | 187,458 | 96,056 |
Trademarks, Branding and Domain Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 63,800 | 32,772 |
Accumulated Amortization | (18,587) | (11,702) |
Net Book Value | 45,213 | 21,070 |
Noncompetition Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 8,390 | 8,390 |
Accumulated Amortization | (8,056) | (7,107) |
Net Book Value | $ 334 | 1,283 |
Acquired Lease Intangibles [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 5,708 | |
Accumulated Amortization | (5,517) | |
Net Book Value | $ 191 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 3 years 10 months 24 days | ||
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 | 5 years 9 months 18 days | ||
Developed Technology [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 3 years 6 months | ||
Other Intangible Assets [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization Expense | $ 67 | $ 29 | $ 16.2 |
Noncompetition Agreements [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives of acquired intangible assets | 1 year |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets, Net - Schedule of Finite Lived Intangible Assets Future Amortization Expense (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | |
2020 | $ 65,606 |
2021 | 58,078 |
2022 | 50,858 |
2023 | 40,359 |
2024 | 6,718 |
Thereafter | 5,266 |
Total | $ 226,885 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | ||||||
Federal corporate tax rate | 21.00% | 21.00% | 35.00% | |||
Increase in income tax expense benefit | $ 1,000 | |||||
Deferred tax assets and liabilities, net of valuation allowance | $ 2,400 | |||||
Alternative minimum tax credit refund | 2,600 | |||||
Effective income tax rate reconciliation, repatriation of foreign earnings | 87,100 | $ 73,000 | ||||
Unrecognized Tax Benefits | $ 163,980 | $ 160,040 | 171,425 | 163,980 | 160,040 | $ 151,100 |
Unrecognized tax benefits that might impact effective tax rate | 164,000 | 171,400 | 164,000 | |||
Tax benefits | 14,800 | $ 9,200 | (5,410) | (11,006) | (10,944) | |
Interest and penalties recorded | 200 | 200 | $ 300 | |||
Liability for uncertain tax positions | $ 900 | 1,100 | $ 900 | |||
Deferred Tax Assets [Member] | ||||||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | ||||||
Unrecognized Tax Benefits | 156,600 | |||||
Other Noncurrent Liabilities [Member] | ||||||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | ||||||
Unrecognized Tax Benefits | 14,800 | |||||
BEAT [Member] | ||||||
Schedule Of Allocation Of Income Tax Expense Benefit [Line Items] | ||||||
Recognised provisional tax benefit | $ 3,900 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 155,887 | $ 29,941 | $ (6,081) |
International | (108,552) | (3,478) | 43,664 |
Income (loss) before income taxes | $ 47,335 | $ 26,463 | $ 37,583 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current tax expense (benefit): | |||||
Federal | $ 11,552 | $ 3,918 | $ (2,132) | ||
State | 5,387 | 205 | 142 | ||
Foreign | 7,722 | 11,967 | 13,562 | ||
Total current tax expense (benefit) | 24,661 | 16,090 | 11,572 | ||
Deferred tax (benefit) expense: | |||||
Federal | 90 | 1,350 | (1,231) | ||
State | 560 | 444 | 300 | ||
Foreign | (19,901) | (6,878) | 303 | ||
Total deferred tax (benefit) expense | (19,251) | (5,084) | (628) | ||
Provision for (benefit from) income taxes | $ (14,800) | $ (9,200) | $ 5,410 | $ 11,006 | $ 10,944 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||
Expected provision for (benefit from) income taxes at U.S. federal statutory rate | $ 9,940 | $ 5,557 | $ 13,154 | ||
State income taxes, net of federal benefit | 4,743 | 205 | 142 | ||
BEAT obligation | 3,918 | ||||
Income (loss) taxed at foreign rates | 10,292 | 4,447 | (3,643) | ||
Stock-based compensation | (15,683) | (3,457) | (2,898) | ||
Tax reserve for uncertain tax positions | 3,174 | 1,676 | 3,101 | ||
Change in valuation allowance | (56,194) | (5,610) | (51,976) | ||
Impact of 2017 Tax Act | 48,237 | ||||
Acquisition costs | 1,166 | 536 | |||
Contingent consideration | 42,328 | 1,155 | (252) | ||
Officer's compensation limitation | 5,165 | 2,340 | 2,582 | ||
Investment in subsidiaries | 1,676 | ||||
Other | 479 | 239 | 821 | ||
Provision for (benefit from) income taxes | $ (14,800) | $ (9,200) | $ 5,410 | $ 11,006 | $ 10,944 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 35.00% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 35,546 | $ 60,737 |
Tax credit carryforwards | 76,354 | 103,740 |
Operating lease liabilities | 34,382 | |
Acquired intangible assets | 29,982 | 28,957 |
Stock-based compensation | 9,251 | 10,150 |
Accrued expenses | 4,899 | 3,718 |
Other accrued compensation | 7,297 | 6,524 |
Charitable contributions | 67 | 2,533 |
State taxes | 1,547 | 351 |
Other | 71 | |
Total deferred tax assets | 199,396 | 216,710 |
Less: Valuation allowance | (141,577) | (205,989) |
Deferred tax assets, net of valuation allowance | 57,819 | 10,721 |
Deferred tax liabilities: | ||
Acquired intangible assets | (37,600) | (11,637) |
Right-of-use assets | (34,021) | |
Goodwill | (7,131) | (5,000) |
Deferred rent | (2,334) | |
Depreciation | (4,694) | |
Convertible debt | (9,621) | |
Other | (2,275) | (2,547) |
Total deferred tax liabilities | (90,648) | (26,212) |
Net deferred taxes | $ (32,829) | $ (15,491) |
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, 2019USD ($) | |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, amount | $ 17,384 |
Tax credit carryforward, amount | $ 93,056 |
State [Member] | Earliest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration year | 2020 |
Tax credit carryforward, expiration year | 2021 |
State [Member] | Latest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration year | 2036 |
Tax credit carryforward, expiration | indefinite |
Foreign [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, amount | $ 13,507 |
Foreign [Member] | Earliest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration year | 2029 |
Foreign [Member] | Latest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration | indefinite |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, amount | $ 5,991 |
Tax credit carryforward, amount | $ 100,462 |
Federal [Member] | Earliest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration year | 2030 |
Tax credit carryforward, expiration year | 2027 |
Federal [Member] | Latest Tax Year [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards, expiration year | 2036 |
Tax credit carryforward, expiration year | 2039 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning balance | $ 163,980 | $ 160,040 | $ 151,100 |
Additions based on tax positions related to current | 5,879 | 4,355 | 8,598 |
Additions for tax positions of prior years | 1,888 | 815 | 427 |
Reductions for tax positions of prior years | (322) | (1,230) | (31) |
Decreases related to settlements of prior year tax positions | (54) | ||
Unrecognized tax benefits, ending balance | $ 171,425 | $ 163,980 | $ 160,040 |
Debt - Additional Information (
Debt - Additional Information (Detail) shares in Thousands, $ in Thousands | Jun. 14, 2019USD ($)d$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)$ / shares | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017shares |
Line Of Credit Facility [Line Items] | ||||||||||
Aggregate principal amount | $ 690,000 | $ 690,000 | ||||||||
Proceeds from the issuance of notes | 672,152 | $ 99,100 | ||||||||
Debt instrument carrying amount of equity component conversion option | 114,938 | 114,938 | ||||||||
Transaction costs attributable to the liability component | 14,800 | |||||||||
Transaction costs attributable to the equity component | $ 3,100 | |||||||||
Anti-dilutive securities underlying conversion option | shares | 4,298 | 14,264 | 22,767 | |||||||
Bank of America, N.A. [Member] | Credit Facility [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Credit facility expiration period | 3 years | |||||||||
Intial aggregate principal borrowing capacity amount | $ 200,000 | $ 200,000 | ||||||||
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 one-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. | |||||||||
Line of credit facility amount outstanding | $ 0 | $ 0 | ||||||||
Debt capitalized, amortize period | 3 years | 3 years | ||||||||
Bank of America, N.A. [Member] | Credit Facility [Member] | LIBOR Rate [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 1.00% | |||||||||
Bank of America, N.A. [Member] | Credit Facility [Member] | Federal Funds Rate [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 0.50% | |||||||||
Sale Agreement [Member] | Bank of America, N.A. [Member] | Credit Facility [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Credit facility remaining borrowing capacity | $ 150,000 | $ 150,000 | ||||||||
Minimum [Member] | Bank of America, N.A. [Member] | Credit Facility [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Payment for commitment fee, percentage | 0.25% | |||||||||
Minimum [Member] | Bank of America, N.A. [Member] | Credit Facility [Member] | Base Rate [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 0.50% | 0.50% | 0.50% | 0.50% | ||||||
Minimum [Member] | Bank of America, N.A. [Member] | Credit Facility [Member] | LIBOR Rate [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 1.50% | |||||||||
Maximum [Member] | Bank of America, N.A. [Member] | Credit Facility [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Payment for commitment fee, percentage | 0.35% | |||||||||
Maximum [Member] | Bank of America, N.A. [Member] | Credit Facility [Member] | Base Rate [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 1.00% | 1.00% | 1.00% | 1.00% | ||||||
Maximum [Member] | Bank of America, N.A. [Member] | Credit Facility [Member] | LIBOR Rate [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument interest rate | 2.00% | |||||||||
Capped Call Transactions [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Initial strike price | $ / shares | 8.31 | 8.31 | ||||||||
Initial cap price | $ / shares | 12.54 | 12.54 | ||||||||
Cost incurred for Capped Calls | $ 73,800 | |||||||||
Common Class A [Member] | Capped Call Transactions [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Capped calls economic dilutive potential common stock shares | shares | 83,100 | |||||||||
Common Class A [Member] | Conversion Senior Notes and Capped Call Transactions [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Anti-dilutive securities underlying conversion option | shares | 83,100 | |||||||||
Common Class A [Member] | Conversion Senior Notes and Capped Call Transactions [Member] | Minimum [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Initial strike price | $ / shares | 8.31 | 8.31 | ||||||||
Convertible Senior Notes Due 2024 [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Aggregate principal amount | $ 690,000 | |||||||||
Debt instrument, interest rate | 0.25% | |||||||||
Additional aggregate principal amount | $ 90,000 | |||||||||
Proceeds from the issuance of notes | $ 672,200 | |||||||||
Debt instrument maturity date | Jun. 1, 2024 | |||||||||
Debt instrument payment terms | The Notes mature on June 1, 2024 unless earlier converted, redeemed or repurchased in accordance with their term prior to the maturity date. Interest is payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2019. | |||||||||
Debt repurchase price percentage | 100.00% | |||||||||
Debt instrument initial carrying amount | $ 572,000 | |||||||||
Interest rate used to calculate the present value of the cash flows | 4.10% | |||||||||
Debt instrument carrying amount of equity component conversion option | $ 118,000 | |||||||||
Contractual term | 5 years | |||||||||
Convertible Senior Notes Due 2024 [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument estimated fair value | $ 706,500 | $ 706,500 | ||||||||
Convertible Senior Notes Due 2024 [Member] | Common Class A [Member] | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Initial conversion rate of common stock per $1,000 principal amount | 120.3695 | |||||||||
Initial conversion price per share of common stock | $ / shares | $ 8.31 | |||||||||
Debt instrument threshold trading days to trigger conversion feature | d | 20 | |||||||||
Debt instrument threshold consecutive trading days to trigger conversion feature | d | 30 | |||||||||
Debt instrument, minimum percentage of common stock price to determine eligibility of conversion | 130.00% | |||||||||
Consecutive business trading period when trading price meets required criteria as a condition for conversion of debt | 5 days | |||||||||
Trading price percentage of product of last reported sales price as a condition for conversion of debt | 98.00% | |||||||||
Debt instrument redemption start date | Jun. 5, 2022 | |||||||||
Debt instrument redemption price percentage | 100.00% |
Debt - Schedule of Net Carrying
Debt - Schedule of Net Carrying Amount of Liability and Equity Components of Notes (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Liability component: | |
Principal | $ 690,000 |
Unamortized debt discount | (106,224) |
Unamortized transaction costs | (13,320) |
Net carrying amount | 570,456 |
Equity component, net of transaction costs | $ 114,938 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense Recognized Related to Notes (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Debt Disclosure [Abstract] | |
Contractual interest expense | $ 944 |
Amortization of debt discount | 11,766 |
Amortization of transaction costs | 1,475 |
Total | $ 14,185 |
Other Current and Non-Current_3
Other Current and Non-Current Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Current [Abstract] | ||
Accrued accounts payable | $ 41,443 | $ 22,669 |
Accrued compensation liability | 52,495 | 41,554 |
Accrued restructuring liability | 3,449 | |
Contingent consideration payable | 180,000 | 17,300 |
Accrued payable from acquisitions | 30,000 | 35,000 |
Accrued lease incentive obligation | 24,895 | |
Value-added taxes payable | 2,857 | 2,624 |
Other current liabilities | 8,010 | 9,338 |
Total other current liabilities | $ 314,805 | $ 156,829 |
Other Current and Non-Current_4
Other Current and Non-Current Liabilities - Schedule of Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Noncurrent [Abstract] | ||
Contingent consideration payable | $ 140,100 | $ 31,700 |
Accrued restructuring liability | 7,613 | |
Uncertain tax positions liability, including interest and penalties | 15,851 | 10,065 |
Other non-current liabilities | 2,462 | 3,208 |
Total other non-current liabilities | $ 158,413 | $ 52,586 |
Stockholders' Equity and Othe_3
Stockholders' Equity and Other Employee Benefits - Additional Information (Detail) | May 02, 2018Voting_Rightsshares | Nov. 30, 2011shares | Dec. 31, 2019USD ($)Voting_Rightsshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Apr. 30, 2018USD ($) | |
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. | 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, voting rights | Voting Rights. Holders of our Class A common stock are entitled to one vote per share. | ||||||
Repurchase of common stock | $ 91,570,000 | $ 105,013,000 | [1] | ||||
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 | $ 44,900,000 | 6,300,000 | 4,900,000 | ||||
Grant date fair value of options vested | 9,500,000 | 6,000,000 | 8,000,000 | ||||
Total unrecognized stock based compensation expense | 23,500,000 | ||||||
Total stock-based expense | $ 81,482,000 | 68,239,000 | 64,515,000 | ||||
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 | $ 5,800,000 | $ 4,700,000 | $ 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 1 month 6 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 4 months 24 days | ||||||
Total unrecognized stock based compensation expense, restricted shares | $ 152,700,000 | ||||||
Performance-Based Awards [Member] | Certain employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total stock-based expense | $ 1,200,000 | $ 1,800,000 | $ 2,400,000 | ||||
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. | ||||||
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] | |||||||
Repurchase of common stock | shares | 0 | ||||||
Treasury stock acquired, average cost per share | $ / shares | $ 3.71 | ||||||
Stock repurchase program, aggregate number of shares repurchased value | $ 26,200,000 | ||||||
Repurchase of common stock | $ 173,800,000 | ||||||
Repurchase program expiration date | Apr. 30, 2022 | ||||||
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 | ||||||
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 | 950,042,000 | 861,111,000 | |||||
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 | $ 3,400,000 | ||||||
Stock-based compensation expense related to 2011 ESPP | $ 3,400,000 | ||||||
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 C [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, shares outstanding | shares | 0 | ||||||
[1] |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 81,482 | $ 68,239 | $ 64,515 |
Cost of Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 1,471 | 1,584 | 1,838 |
Research and Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 47,049 | 42,151 | 42,176 |
Sales and Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 11,277 | 8,495 | 7,281 |
General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 21,685 | $ 16,009 | $ 13,220 |
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, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Options Outstanding, Beginning balance | 36,185 | |
Stock Options, Granted | 4,647 | |
Stock Options, Forfeited, expired and cancelled | (42) | |
Stock Options, Exercised | (9,586) | |
Stock Options Outstanding, Ending balance | 31,204 | 36,185 |
Stock Options, Exercisable options | 15,666 | |
Stock Options, Vested and expected to vest | 31,204 | |
Outstanding Options, Weighted Average Exercise Price, Beginning Balance | $ 2.35 | |
Weighted Average Exercise Price, Granted | 5.37 | |
Weighted Average Exercise Price, Forfeited, expired and cancelled | 2.85 | |
Weighted Average Exercise Price, Exercised | 0.90 | |
Outstanding Options, Weighted Average Exercise Price, Ending Balance | 3.24 | $ 2.35 |
Weighted-Average Exercise Price, Exercisable options | 2.78 | |
Weighted-Average Exercise Price, Vested and expected to vest | $ 3.24 | |
Outstanding Options, Aggregate Intrinsic Value of Stock Options Outstanding | $ 89,786 | $ 57,510 |
Aggregate Intrinsic Value of Stock Options Outstanding, Exercisable options | 52,363 | |
Aggregate Intrinsic Value of Stock Options, Vested and expected to vest | $ 89,786 | |
Outstanding Options, Weighted Average Contractual Term (in years) | 7 years 2 months 8 days | 6 years 2 months 23 days |
Weighted-Average Contractual Term (in years), Exercisable options | 6 years 7 months 2 days | |
Weighted-Average Contractual Term (in years), Vested and expected to vest | 7 years 2 months 8 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Expected term, in years | 6 years | 6 years | 6 years |
Risk-free interest rates | 2.53% | 2.14% | 2.12% |
Expected volatility | 43.00% | 47.00% | 46.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average estimated fair value of stock options granted during the year | $ 2.41 | $ 1.61 | $ 1.75 |
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, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested Outstanding Shares, Beginning balance | 52,482 | |
Unvested Shares, Granted | 14,086 | |
Unvested Shares, Vested | (21,650) | |
Unvested Shares, Forfeited | (4,730) | |
Unvested Outstanding Shares, Ending balance | 40,188 | |
Unvested Weighted Average Grant Date Fair Value, Beginning balance | $ 3.49 | |
Unvested Weighted Average Grant Date Fair Value, Granted | 5.61 | |
Unvested Weighted Average Grant Date Fair Value, Vested | 3.43 | |
Unvested Weighted Average Grant Date Fair Value, Forfeited | 3.81 | |
Unvested Weighted Average Grant Date Fair Value, Ending balance | $ 4.23 | |
Unvested, Aggregate Intrinsic Value of Unvested ZSU | $ 245,951 | $ 206,254 |
Stockholders' Equity and Othe_8
Stockholders' Equity and Other Employee Benefits - Common Stock Reserved for Future Issuance (Detail) shares in Thousands | Dec. 31, 2019shares |
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 | 346,541 |
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 | 152,769 |
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 | 122,380 |
Zynga Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance | 31,204 |
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 | 40,188 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance, Value | $ 1,596,610 | $ 1,641,240 | $ 1,580,664 |
Other comprehensive income (loss), net of tax: | (7,496) | (24,942) | 35,197 |
Ending balance, Value | 1,975,430 | 1,596,610 | 1,641,240 |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance, Value | (118,441) | (93,319) | |
Other comprehensive income (loss) before reclassifications, net of tax | (7,773) | (25,122) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | |
Other comprehensive income (loss), net of tax: | (7,773) | (25,122) | |
Ending balance, Value | (126,214) | (118,441) | (93,319) |
Unrealized Gains (Losses) on Available-For-Sale Marketable Debt Securities [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance, Value | 2 | (178) | |
Other comprehensive income (loss) before reclassifications, net of tax | 277 | 180 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | |
Other comprehensive income (loss), net of tax: | 277 | 180 | |
Ending balance, Value | 279 | 2 | (178) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance, Value | (118,439) | (93,497) | (128,694) |
Other comprehensive income (loss) before reclassifications, net of tax | (7,496) | (24,942) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | |
Other comprehensive income (loss), net of tax: | (7,496) | (24,942) | 35,197 |
Ending balance, Value | $ (125,935) | $ (118,439) | $ (93,497) |
Net Income (Loss) Per Share o_3
Net Income (Loss) Per Share of Common Stock - Additional Information (Detail) - shares | May 02, 2018 | Dec. 31, 2019 |
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. | 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. |
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 2019 and 2018. | |
Common Class B [Member] | ||
Earnings Per Share Diluted [Line Items] | ||
Common stock, shares outstanding | 0 | |
Common Class C [Member] | ||
Earnings Per Share Diluted [Line Items] | ||
Common stock, shares outstanding | 0 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic | |||
Net income (loss) attributable to common stockholders – basic | $ 41,925 | $ 15,457 | $ 26,639 |
Weighted-average common shares outstanding – basic | 938,709 | 862,460 | 869,067 |
Net income (loss) per share attributable to common stockholders | $ 0.04 | $ 0.02 | $ 0.03 |
Diluted | |||
Weighted-average common shares outstanding – basic | 938,709 | 862,460 | 869,067 |
Weighted-average common shares outstanding – diluted | 974,020 | 889,584 | 897,165 |
Net income (loss) per share attributable to common stockholders – diluted | $ 0.04 | $ 0.02 | $ 0.03 |
Common Class A [Member] | |||
Basic | |||
Net income (loss) attributable to common stockholders – basic | $ 41,925 | $ 15,457 | $ 23,795 |
Weighted-average common shares outstanding – basic | 938,709 | 862,460 | 776,625 |
Net income (loss) per share attributable to common stockholders | $ 0.04 | $ 0.02 | $ 0.03 |
Diluted | |||
Net income (loss) attributable to common stockholders – basic | $ 41,925 | $ 15,457 | $ 23,795 |
Net income (loss) attributable to common stockholders – diluted | $ 26,628 | ||
Weighted-average common shares outstanding – basic | 938,709 | 862,460 | 776,625 |
Weighted-average common shares outstanding – diluted | 974,020 | 889,584 | 897,165 |
Net income (loss) per share attributable to common stockholders – diluted | $ 0.04 | $ 0.02 | $ 0.03 |
Common Class A [Member] | Stock Options and Employee Stock Purchase Plan [Member] | |||
Diluted | |||
Weighted-average effect of dilutive securities | 12,960 | 10,958 | 9,879 |
Common Class A [Member] | Restricted Stock Units (ZSUs) [Member] | |||
Diluted | |||
Weighted-average effect of dilutive securities | 22,351 | 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 | ||
Conversion of common stock class | 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 | ||
Conversion of common stock class | 71,925 | ||
Common Class B [Member] | |||
Basic | |||
Net income (loss) attributable to common stockholders – basic | $ 2,204 | ||
Weighted-average common shares outstanding – basic | 71,925 | ||
Net income (loss) per share attributable to common stockholders | $ 0.03 | ||
Diluted | |||
Net income (loss) attributable to common stockholders – basic | $ 2,204 | ||
Reallocation of net income (loss) to Class B and Class C shares | 180 | ||
Net income (loss) attributable to common stockholders – diluted | $ 2,384 | ||
Weighted-average common shares outstanding – basic | 71,925 | ||
Weighted-average common shares outstanding – diluted | 80,315 | ||
Net income (loss) per share attributable to common stockholders – diluted | $ 0.03 | ||
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 | ||
Weighted-average common shares outstanding – basic | 20,517 | ||
Net income (loss) per share attributable to common stockholders | $ 0.03 | ||
Diluted | |||
Net income (loss) attributable to common stockholders – basic | $ 629 | ||
Reallocation of net income (loss) to Class B and Class C shares | (20) | ||
Net income (loss) attributable to common stockholders – diluted | $ 609 | ||
Weighted-average common shares outstanding – basic | 20,517 | ||
Weighted-average common shares outstanding – diluted | 20,517 | ||
Net income (loss) per share attributable to common stockholders – diluted | $ 0.03 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 4,298 | 14,264 | 22,767 |
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 | 3,718 | 6,193 | 17,331 |
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 | ||
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 | 580 | 8,071 | 5,087 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Contractual Royalty Payments to Licensors and Marketing Commitments (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2020 | $ 20,250 |
2021 | 9,782 |
2023 | 10,000 |
Total | $ 40,032 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Purchase Commitments (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2020 | $ 30,380 |
2021 | 12,813 |
2022 | 1,111 |
Total | $ 44,304 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments And Contingencies Disclosure [Abstract] | ||
Uncertain tax positions liability, including interest and penalties | $ 15,851 | $ 10,065 |
Financial Statement Schedules_2
Financial Statement Schedules - Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation And Qualifying Accounts [Abstract] | ||
Balance at Beginning of Year | $ 2,653 | |
Charges to Expense | 148 | $ 3,215 |
Write-Offs, Net of Recoveries | $ (2,801) | (562) |
Balance at End of Year | $ 2,653 |