2015 Q3 Form 10-Q Financial Statement

#000089110315000016 Filed on November 09, 2015

View on sec.gov

Income Statement

Concept 2015 Q3 2014 Q4 2014 Q3
Revenue $838.6M $830.8M $782.2M
YoY Change 7.2% 14.67% 3.35%
Cost Of Revenue $199.4M $233.7M $218.5M
YoY Change -8.73% 5.08% -12.58%
Gross Profit $639.2M $597.0M $563.8M
YoY Change 13.37% 18.92% 11.2%
Gross Profit Margin 76.22% 71.87% 72.07%
Selling, General & Admin $477.2M $107.4M $385.3M
YoY Change 23.86% 18.83%
% of Gross Profit 74.66% 17.99% 68.34%
Research & Development $46.86M $13.10M $40.69M
YoY Change 15.16% 15.49%
% of Gross Profit 7.33% 2.19% 7.22%
Depreciation & Amortization $15.63M $13.00M $14.13M
YoY Change 10.56% 4.77%
% of Gross Profit 2.44% 2.18% 2.51%
Operating Expenses $524.1M $133.6M $426.0M
YoY Change 23.03% 18.5%
Operating Profit $87.13M $110.4M $101.0M
YoY Change -13.69% -2.28% -17.25%
Interest Expense $15.99M -$2.300M $14.01M
YoY Change 14.16% 83.77%
% of Operating Profit 18.35% -2.08% 13.88%
Other Income/Expense, Net $34.40M $4.000M $4.113M
YoY Change 736.32% -75.4%
Pretax Income $105.5M $69.20M $90.45M
YoY Change 16.69% -29.26%
Income Tax $40.51M $20.80M -$59.82M
% Of Pretax Income 38.39% 30.06% -66.14%
Net Earnings $65.61M $68.61M $326.8M
YoY Change -79.92% -12.99% 237.13%
Net Earnings / Revenue 7.82% 8.26% 41.78%
Basic Earnings Per Share $0.79 $0.84 $3.91
Diluted Earnings Per Share $0.74 $0.78 $3.68
COMMON SHARES
Basic Shares Outstanding 82.91M shares 83.59M shares
Diluted Shares Outstanding 88.90M shares 88.79M shares

Balance Sheet

Concept 2015 Q3 2014 Q4 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $819.9M $1.150B $1.049B
YoY Change -21.81%
Cash & Equivalents $766.4M $990.4M $931.7M
Short-Term Investments $53.48M $159.2M $116.9M
Other Short-Term Assets $178.9M $148.7M $169.5M
YoY Change 5.55% -7.91% 11.52%
Inventory
Prepaid Expenses $39.31M
Receivables $247.0M $236.1M $235.0M
Other Receivables $0.00 $0.00
Total Short-Term Assets $1.246B $1.536B $1.455B
YoY Change -14.36% 4.1% 28.79%
LONG-TERM ASSETS
Property, Plant & Equipment $299.1M $302.5M $301.0M
YoY Change -0.62% 2.89% 3.61%
Goodwill $1.769B $1.755B $1.799B
YoY Change -1.68% 4.75% 7.58%
Intangibles $459.9M $491.9M $511.3M
YoY Change -10.04% 10.46% 11.54%
Long-Term Investments $65.20M $0.00
YoY Change
Other Assets $114.1M $56.69M $54.25M
YoY Change 110.35% -65.57% -39.15%
Total Long-Term Assets $2.781B $2.721B $2.783B
YoY Change -0.07% -1.39% 4.05%
TOTAL ASSETS
Total Short-Term Assets $1.246B $1.536B $1.455B
Total Long-Term Assets $2.781B $2.721B $2.783B
Total Assets $4.027B $4.257B $4.238B
YoY Change -4.98% 0.52% 11.4%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $20.30M $11.80M
YoY Change
Accrued Expenses $347.1M $397.5M $369.8M
YoY Change -6.15% 13.25% 0.87%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00
YoY Change
Total Short-Term Liabilities $653.5M $673.7M $653.7M
YoY Change -0.04% 14.79% 8.67%
LONG-TERM LIABILITIES
Long-Term Debt $1.000B $1.080B
YoY Change 0.0%
Other Long-Term Liabilities $62.48M $45.19M $36.65M
YoY Change 70.46% -22.61% -43.77%
Total Long-Term Liabilities $1.062B $1.125B $36.65M
YoY Change 2798.9% -1.16% -94.32%
TOTAL LIABILITIES
Total Short-Term Liabilities $653.5M $673.7M $653.7M
Total Long-Term Liabilities $1.062B $1.125B $36.65M
Total Liabilities $1.716B $1.799B $690.3M
YoY Change 148.56% 4.27% -44.63%
SHAREHOLDERS EQUITY
Retained Earnings $391.5M $325.1M $283.5M
YoY Change 38.08% -1093.18% -358.57%
Common Stock $11.46B $11.42B $11.40B
YoY Change 0.53% -1.27% -1.61%
Preferred Stock
YoY Change
Treasury Stock (at cost) $9.861B $9.661B $9.661B
YoY Change 2.07% -1.72% -0.75%
Treasury Stock Shares 187.1M shares 184.2M shares 184.2M shares
Shareholders Equity $1.845B $1.992B $1.975B
YoY Change
Total Liabilities & Shareholders Equity $4.027B $4.257B $4.238B
YoY Change -4.98% 0.52% 11.4%

Cashflow Statement

Concept 2015 Q3 2014 Q4 2014 Q3
OPERATING ACTIVITIES
Net Income $65.61M $68.61M $326.8M
YoY Change -79.92% -12.99% 237.13%
Depreciation, Depletion And Amortization $15.63M $13.00M $14.13M
YoY Change 10.56% 4.77%
Cash From Operating Activities $32.70M $44.40M $57.10M
YoY Change -42.73%
INVESTING ACTIVITIES
Capital Expenditures -$9.900M -$7.200M -$5.000M
YoY Change 98.0%
Acquisitions
YoY Change
Other Investing Activities -$7.300M -$200.0K -$112.8M
YoY Change -93.53%
Cash From Investing Activities -$17.10M -$7.400M -$117.9M
YoY Change -85.5%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 133.3M -38.40M 63.20M
YoY Change 110.92%
NET CHANGE
Cash From Operating Activities 32.70M 44.40M 57.10M
Cash From Investing Activities -17.10M -7.400M -117.9M
Cash From Financing Activities 133.3M -38.40M 63.20M
Net Change In Cash 148.9M -1.400M 2.400M
YoY Change 6104.17%
FREE CASH FLOW
Cash From Operating Activities $32.70M $44.40M $57.10M
Capital Expenditures -$9.900M -$7.200M -$5.000M
Free Cash Flow $42.60M $51.60M $62.10M
YoY Change -31.4%

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us-gaap Cost Of Goods And Services Sold
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us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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CY2015Q3 us-gaap Effective Income Tax Rate Continuing Operations
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us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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us-gaap Excess Tax Benefit From Share Based Compensation Financing Activities
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us-gaap Excess Tax Benefit From Share Based Compensation Financing Activities
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us-gaap Excess Tax Benefit From Share Based Compensation Operating Activities
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us-gaap Excess Tax Benefit From Share Based Compensation Operating Activities
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308000 USD
us-gaap Foreign Currency Transaction Gain Loss Before Tax
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us-gaap Gain Loss On Disposition Of Intangible Assets
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us-gaap Gain Loss On Disposition Of Intangible Assets
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CY2015Q3 us-gaap General And Administrative Expense
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Per Basic Share
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us-gaap Income Loss From Continuing Operations Per Diluted Share
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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us-gaap Income Loss From Equity Method Investments
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us-gaap Income Loss From Equity Method Investments
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us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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us-gaap Increase Decrease In Accounts Receivable
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us-gaap Increase Decrease In Accrued Income Taxes Payable
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us-gaap Increase Decrease In Accrued Income Taxes Payable
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us-gaap Increase Decrease In Deferred Revenue
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us-gaap Net Cash Provided By Used In Continuing Operations
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us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
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us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
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us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
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us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
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us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
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us-gaap Net Income Loss
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CY2015Q3 us-gaap Net Income Loss
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us-gaap Net Income Loss
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us-gaap Net Income Loss Attributable To Noncontrolling Interest
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us-gaap Net Income Loss Attributable To Noncontrolling Interest
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us-gaap Net Income Loss Attributable To Redeemable Noncontrolling Interest
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us-gaap Nonoperating Income Expense
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CY2015Q3 us-gaap Nonoperating Income Expense
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us-gaap Nonoperating Income Expense
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CY2015Q3 us-gaap Number Of Countries In Which Entity Operates
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us-gaap Number Of Operating Segments
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us-gaap Operating Income Loss
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us-gaap Other Comprehensive Income Loss Available For Sale Securities Tax
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us-gaap Other Comprehensive Income Loss Available For Sale Securities Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Net Of Tax
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us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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us-gaap Other Operating Activities Cash Flow Statement
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0 USD
us-gaap Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net Availableforsale Securities
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us-gaap Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net Availableforsale Securities
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us-gaap Payments For Proceeds From Other Investing Activities
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Payments To Acquire Available For Sale Securities Debt
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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us-gaap Payments To Acquire Longterm Investments
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us-gaap Payments To Acquire Longterm Investments
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us-gaap Payments To Acquire Property Plant And Equipment
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us-gaap Payments To Acquire Property Plant And Equipment
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us-gaap Payments To Minority Shareholders
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us-gaap Proceeds From Issuance Or Sale Of Equity
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us-gaap Proceeds From Sale And Maturity Of Available For Sale Securities
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998000 USD
us-gaap Proceeds From Sale And Maturity Of Available For Sale Securities
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CY2014Q3 us-gaap Profit Loss
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us-gaap Profit Loss
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CY2015Q3 us-gaap Profit Loss
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us-gaap Profit Loss
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144763000 USD
CY2014Q4 us-gaap Property Plant And Equipment Net
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us-gaap Reclassifications Of Temporary To Permanent Equity
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CY2014Q4 us-gaap Redeemable Noncontrolling Interest Equity Carrying Amount
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40427000 USD
CY2015Q3 us-gaap Redeemable Noncontrolling Interest Equity Carrying Amount
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25227000 USD
us-gaap Repayments Of Long Term Debt
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us-gaap Repayments Of Long Term Debt
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40691000 USD
us-gaap Research And Development Expense
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118352000 USD
CY2015Q3 us-gaap Research And Development Expense
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us-gaap Research And Development Expense
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CY2014Q4 us-gaap Retained Earnings Accumulated Deficit
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325118000 USD
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391492000 USD
CY2014Q3 us-gaap Revenues
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us-gaap Revenues
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CY2015Q3 us-gaap Revenues
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838561000 USD
us-gaap Revenues
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2382205000 USD
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278321000 USD
us-gaap Selling And Marketing Expense
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849410000 USD
CY2015Q3 us-gaap Selling And Marketing Expense
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us-gaap Selling And Marketing Expense
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1014289000 USD
us-gaap Stock Issued During Period Value Share Based Compensation
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CY2014Q4 us-gaap Stockholders Equity
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StockholdersEquity
1845191000 USD
CY2014Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1993142000 USD
CY2015Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1845191000 USD
us-gaap Stockholders Equity Other
StockholdersEquityOther
844000 USD
us-gaap Temporary Equity Other Changes
TemporaryEquityOtherChanges
283000 USD
CY2014Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
184182001 shares
CY2015Q3 us-gaap Treasury Stock Shares
TreasuryStockShares
187137267 shares
CY2014Q4 us-gaap Treasury Stock Value
TreasuryStockValue
9661350000 USD
CY2015Q3 us-gaap Treasury Stock Value
TreasuryStockValue
9861350000 USD
us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
200000000 USD
CY2014Q4 us-gaap Unrecognized Tax Benefits Income Tax Penalties Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAccrued
2900000 USD
CY2015Q3 us-gaap Unrecognized Tax Benefits Income Tax Penalties Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAccrued
2100000 USD
CY2014Q4 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Accrued
UnrecognizedTaxBenefitsInterestOnIncomeTaxesAccrued
2800000 USD
CY2015Q3 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Accrued
UnrecognizedTaxBenefitsInterestOnIncomeTaxesAccrued
2200000 USD
CY2015Q3 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Expense
UnrecognizedTaxBenefitsInterestOnIncomeTaxesExpense
100000 USD
us-gaap Unrecognized Tax Benefits Interest On Income Taxes Expense
UnrecognizedTaxBenefitsInterestOnIncomeTaxesExpense
-200000 USD
CY2014Q3 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
5199000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
5167000 shares
CY2015Q3 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
5990000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
5323000 shares
CY2014Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
88790000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
88255000 shares
CY2015Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
88900000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
88247000 shares
CY2014Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
83591000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
83088000 shares
CY2015Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
82910000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
82924000 shares
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Certain Risks and Concentrations</font></div><div style="line-height:120%;padding-bottom:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">A substantial portion of the Company's revenue is derived from online advertising, the market for which is highly competitive and rapidly changing. Significant changes in this industry or changes in advertising spending behavior or in customer buying behavior could adversely affect our operating results. Most of the Company's online advertising revenue is attributable to a services agreement with Google&#160;Inc. ("Google"). On October 26, 2015, the Company and Google entered into a services agreement that is effective as of April 1, 2016, following the expiration of the current services agreement, and expires on March 31, 2020. The Company may choose to terminate the agreement effective March 31, 2019. These services agreements require that we comply with certain guidelines promulgated by Google. Subject to certain limitations, Google may unilaterally update its policies and guidelines, which could require modifications to, or prohibit and/or render obsolete certain of our products, services and/or business practices, which could be costly to address or otherwise have an adverse effect on our business, financial condition and results of operations.</font></div></div>
us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:16px;padding-top:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">CONTINGENCIES</font></div><div style="line-height:120%;padding-bottom:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In the ordinary course of business, the Company is a party to various lawsuits. The Company establishes reserves for specific legal matters when it determines that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. Management has also identified certain other legal matters where we believe an unfavorable outcome is not probable and, therefore, no reserve is established. Although management currently believes that resolving claims against us, including claims where an unfavorable outcome is reasonably possible, will not have a material impact on the liquidity, results of operations, or financial condition of the Company, these matters are subject to inherent uncertainties and management's view of these matters may change in the future. The Company also evaluates other contingent matters, including income and non-income tax contingencies, to assess the likelihood of an unfavorable outcome and estimated extent of potential loss. It is possible that an unfavorable outcome of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">one</font><font style="font-family:inherit;font-size:10pt;"> or more of these lawsuits or other contingencies could have a material impact on the liquidity, results of operations, or financial condition of the Company. See Note&#160;2 for additional information related to income tax contingencies.</font></div></div>
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Reclassifications</font></div><div style="line-height:120%;padding-bottom:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain prior year amounts have been reclassified to conform to the current year presentation.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Accounting Estimates</font></div><div style="line-height:120%;padding-bottom:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of consolidated financial statements in accordance with GAAP requires management to make certain estimates, judgments and assumptions that impact the reported amounts of assets, liabilities, revenue and expenses and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. </font></div><div style="line-height:120%;padding-bottom:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On an ongoing basis, the Company evaluates its estimates and judgments including those related to: the fair values of marketable securities and other investments; the recoverability of goodwill and indefinite-lived intangible assets; the useful lives and recoverability of definite-lived intangible assets and property and equipment; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts and revenue reserves; the fair value of acquisition-related contingent consideration; the liabilities for uncertain tax positions; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. The Company bases its estimates and judgments on historical experience, its forecasts and budgets and other factors that the Company considers relevant.</font></div><div style="line-height:120%;padding-bottom:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;"></font></div></div>

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