GODADDY INC., 10-K filed on 2/27/2018
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2017
Jun. 30, 2017
Feb. 23, 2018
Class A Common Stock
Feb. 23, 2018
Class B Common Stock
Document Information [Line Items]
 
 
 
 
Entity Registrant Name
GoDaddy Inc. 
 
 
 
Entity Central Index Key
0001609711 
 
 
 
Current Fiscal Year End Date
--12-31 
 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
 
Document Type
10-K 
 
 
 
Document Period End Date
Dec. 31, 2017 
 
 
 
Document Fiscal Year Focus
2017 
 
 
 
Document Fiscal Period Focus
FY 
 
 
 
Amendment Flag
false 
 
 
 
Entity Common Stock, Shares Outstanding
 
 
133,934,978 
33,999,841 
Entity Well-known Seasoned Issuer
Yes 
 
 
 
Entity Voluntary Filers
No 
 
 
 
Entity Current Reporting Status
Yes 
 
 
 
Entity Public Float
 
$ 3,685,245,433 
 
 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Current assets:
 
 
Cash and cash equivalents
$ 582.7 
$ 566.1 
Short-term investments
12.3 
6.6 
Accounts and other receivables
18.4 
8.0 
Registry deposits
34.7 
20.6 
Prepaid domain name registry fees
351.5 
307.0 
Prepaid expenses and other current assets
59.9 
24.5 
Total current assets
1,059.5 
932.8 
Property and equipment, net
297.9 
231.0 
Prepaid domain name registry fees, net of current portion
180.8 
172.1 
Goodwill
2,859.9 
1,718.4 
Intangible assets, net
1,326.0 
716.5 
Other assets
14.2 
16.1 
Total assets
5,738.3 
3,786.9 
Current liabilities:
 
 
Accounts payable
59.6 
61.7 
Accrued expenses and other current liabilities
469.6 
143.0 
Payable to related parties for tax distributions
0 
10.0 
Deferred revenue
1,264.8 
1,043.5 
Long-term debt
16.7 
4.0 
Total current liabilities
1,810.7 
1,262.2 
Deferred revenue, net of current portion
596.8 
532.7 
Long-term debt, net of current portion
2,410.8 
1,035.7 
Payable to related parties pursuant to tax receivable agreements
153.0 
202.6 
Other long-term liabilities
75.0 
39.5 
Deferred tax liabilities
145.5 
0 
Commitments and contingencies
   
   
Stockholders' equity:
 
 
Preferred stock, $0.001 par value - 50,000 shares authorized; none issued and outstanding
0 
0 
Additional paid-in capital
484.4 
608.3 
Retained earnings (accumulated deficit)
87.7 
(48.7)
Accumulated other comprehensive income (loss)
(85.7)
2.7 
Total stockholders' equity attributable to GoDaddy Inc.
486.5 
562.5 
Non-controlling interests
60.0 
151.7 
Total stockholders' equity
546.5 
714.2 
Total liabilities and stockholders' equity
5,738.3 
3,786.9 
Class A Common Stock
 
 
Stockholders' equity:
 
 
Common stock
0.1 
0.1 
Class B Common Stock
 
 
Stockholders' equity:
 
 
Common stock
$ 0 
$ 0.1 
Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2017
Dec. 31, 2016
Preferred stock par value (in dollars per share)
$ 0.001 
$ 0.001 
Preferred stock shares authorized (in shares)
50,000,000 
50,000,000 
Preferred stock shares issued (in shares)
0 
0 
Preferred stock outstanding (in shares)
0 
0 
Common stock outstanding (in shares)
167,999,000 
167,112,000 
Class A Common Stock
 
 
Par value (in dollars per share)
$ 0.001 
$ 0.001 
Common stock shares authorized (in shares)
1,000,000,000 
1,000,000,000 
Common stock shares issued (in shares)
132,993,000 
88,558,000 
Common stock outstanding (in shares)
132,993,000 
88,558,000 
Class B Common Stock
 
 
Par value (in dollars per share)
$ 0.001 
$ 0.001 
Common stock shares authorized (in shares)
500,000,000 
500,000,000 
Common stock shares issued (in shares)
35,006,000 
78,554,000 
Common stock outstanding (in shares)
35,006,000 
78,554,000 
Consolidated Statements of Operations (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Revenue
 
 
 
Revenue
$ 2,231.9 
$ 1,847.9 
$ 1,607.3 
Costs and operating expenses
 
 
 
Cost of revenue (excluding depreciation and amortization)
775.5 1
657.8 1
565.9 
Technology and development
355.8 1
287.8 1
270.2 
Marketing and advertising
253.2 1
228.8 1
202.2 
Customer care
292.3 1
242.1 1
221.5 
General and administrative
282.4 1
221.2 1
219.7 
Depreciation and amortization
205.8 1
160.1 1
158.8 
Total costs and operating expenses
2,165.0 1
1,797.8 1
1,638.3 1
Operating income (loss)
66.9 
50.1 
(31.0)
Interest expense
(83.0)
(57.2)
(69.2)
Loss on debt extinguishment
(7.3)
0 
(21.4)
Tax receivable agreements liability adjustment
123.2 
(12.5)
0 
Other income (expense), net
7.0 
(1.9)
1.0 
Income (loss) from continuing operations before income taxes
106.8 
(21.5)
(120.6)
Benefit (provision) for income taxes
18.9 
(0.4)
0.2 
Income (loss) from continuing operations
125.7 
(21.9)
(120.4)
Income from discontinued operations, net of income taxes (includes $33.2 gain on disposal, net of tax)
14.1 
0 
0 
Net income (loss)
139.8 
(21.9)
(120.4)
Less: net income (loss) attributable to non-controlling interests
3.4 
(5.4)
(44.8)
Net income (loss) attributable to GoDaddy Inc.
136.4 
(16.5)
(75.6)
Class A Common Stock
 
 
 
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—basic:
 
 
 
Net income (loss) from continuing operations per share, basic (in USD per share)
$ 1.17 2
$ (0.21)2
$ (0.81)2
Net income (loss) from discontinued operations per share, basic (in USD per share)
$ 0.08 2
$ 0.00 2
$ 0.00 2
Net income (loss) per share—basic (in USD per share)
$ 1.25 2
$ (0.21)2
$ (0.81)2
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—diluted:
 
 
 
Net income (loss) from continuing operations per share, diluted (in USD per share)
$ 0.71 2
$ (0.21)2
$ (0.81)2
Net income (loss) from continuing operations per share, diluted (in USD per share)
$ 0.08 2
$ 0.00 2
$ 0.00 2
Net income (loss) per share—diluted (in USD per share)
$ 0.79 2
$ (0.21)2
$ (0.81)2
Weighted-average shares of Class A common stock outstanding:
 
 
 
Weighted-average shares outstanding, basic (in shares)
108,779,000 2
79,835,000 2
58,676,000 2
Weighted-average shares outstanding, diluted (in shares)
177,054,000 2
79,835,000 2
58,676,000 2
Domains
 
 
 
Revenue
 
 
 
Revenue
1,057.2 
927.8 
840.8 
Hosting and presence
 
 
 
Revenue
 
 
 
Revenue
847.9 
678.7 
592.0 
Business applications
 
 
 
Revenue
 
 
 
Revenue
$ 326.8 
$ 241.4 
$ 174.5 
Consolidated Statements of Operations (Parenthetical) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Gain on disposal
$ 33.2 
$ 0 
$ 0 
Technology and development
 
 
 
Equity-based compensation expense
37.1 
23.2 
18.2 
Marketing and advertising
 
 
 
Equity-based compensation expense
7.3 
8.1 
6.1 
Customer care
 
 
 
Equity-based compensation expense
3.6 
3.9 
2.9 
General and administrative
 
 
 
Equity-based compensation expense
$ 28.4 
$ 21.6 
$ 13.2 
Consolidated Statement of Stockholders'/Members' Equity Statement (USD $)
In Millions, except Share data, unless otherwise specified
Total
USD ($)
Class A Common Stock
Class B Common Stock
Members' Equity
USD ($)
Common Stock
Class A Common Stock
USD ($)
Common Stock
Class B Common Stock
USD ($)
Additional Paid-in Capital
USD ($)
Accumulated Deficit
USD ($)
Accumulated Other Comprehensive Income
USD ($)
Non- Controlling Interest
USD ($)
Total Stockholders' Equity
USD ($)
Equity at beginning of period at Dec. 31, 2014
 
 
 
$ 410.4 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income
(120.4)
 
 
(43.4)
 
 
 
(32.2)
 
(44.8)
(77.0)
Equity-based compensation expense
 
 
 
8.7 
 
 
31.7 
 
 
 
31.7 
Effect of the pre-IPO organizational transactions
 
 
 
(375.9)
0.1 
0.1 
61.6 
 
 
314.1 
375.9 
Effect of the Reorganization Transactions (in shares)
 
 
 
 
38,826,000 
90,425,000 
 
 
 
 
 
Shares issued during IPO (in shares)
 
 
 
 
26,000,000 
 
 
 
 
 
 
Issuance of Class A common stock in initial public offering, net of offering costs
 
 
 
 
 
 
480.6 
 
 
 
480.6 
Liability pursuant to the tax receivable agreements resulting from the pre-IPO organizational transactions
 
 
 
 
 
 
(151.6)
 
 
 
(151.6)
Stock option exercises and other
 
 
 
0.2 
 
 
20.8 
 
3.2 
(14.1)
9.9 
Stock option exercises and other (in shares)
 
 
 
 
1,582,000 
(27,000)
 
 
 
 
 
Issuance of Class A common stock under employee stock purchase plan (in shares)
 
 
 
 
675,000 
 
 
 
 
 
 
Issuance of Class A common stock under employee stock purchase plan
 
 
 
 
 
 
11.5 
 
 
 
11.5 
Change in foreign currency translation adjustment
0 
 
 
 
 
 
 
 
 
 
 
Equity at end of period at Dec. 31, 2015
 
 
 
0 
0.1 
0.1 
454.6 
(32.2)
3.2 
255.2 
681.0 
Ending balance (in shares) at Dec. 31, 2015
 
 
 
 
67,083,000 
90,398,000 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income
(21.9)
 
 
 
 
 
 
(16.5)
 
(5.4)
(21.9)
Equity-based compensation expense
 
 
 
 
 
 
56.8 
 
 
 
56.8 
Liability pursuant to the tax receivable agreements resulting from the pre-IPO organizational transactions
 
 
 
 
 
 
(38.5)
 
 
 
(38.5)
Issuance of Class A common stock under employee stock purchase plan (in shares)
 
 
 
 
202,000 
 
 
 
 
 
 
Issuance of Class A common stock under employee stock purchase plan
 
 
 
 
 
 
5.0 
 
 
 
5.0 
Stock option exercises (in shares)
 
 
 
 
9,187,000 
 
 
 
 
 
 
Stock option exercises
 
 
 
 
 
 
114.8 
 
 
(59.8)
55.0 
Effect of exchanges of LLC Units (in shares)
 
 
 
 
11,844,000 
(11,844,000)
 
 
 
 
 
Effect of exchanges of LLC Units
 
 
 
 
 
 
15.3 
 
 
(15.3)
0 
Distributions to holders of LLC Units
 
 
 
 
 
 
 
 
 
(23.0)
(23.0)
Other (in shares)
 
 
 
 
242,000 
 
 
 
 
 
 
Other
 
 
 
 
 
 
0.3 
 
(0.5)
 
(0.2)
Change in foreign currency translation adjustment
(0.1)
 
 
 
 
 
 
 
 
 
 
Equity at end of period at Dec. 31, 2016
714.2 
 
 
 
0.1 
0.1 
608.3 
(48.7)
2.7 
151.7 
714.2 
Ending balance (in shares) at Dec. 31, 2016
167,112,000 
88,558,000 
78,554,000 
 
88,558,000 
78,554,000 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income
139.8 
 
 
 
 
 
 
136.4 
 
3.4 
139.8 
Equity-based compensation expense
 
 
 
 
 
 
76.4 
 
 
 
76.4 
Shares issued during IPO (in shares)
 
 
 
 
721,000 
 
 
 
 
 
 
Issuance of Class A common stock in initial public offering, net of offering costs
 
 
 
 
 
 
21.3 
 
 
 
21.3 
Liability pursuant to the tax receivable agreements resulting from the pre-IPO organizational transactions
 
 
 
 
 
 
(73.6)
 
 
 
(73.6)
Issuance of Class A common stock under employee stock purchase plan (in shares)
 
 
 
 
572,000 
 
 
 
 
 
 
Issuance of Class A common stock under employee stock purchase plan
 
 
 
 
 
 
17.4 
 
 
 
17.4 
Stock option exercises (in shares)
 
 
 
 
6,000,000 
 
 
 
 
 
 
Stock option exercises
 
 
 
 
 
 
80.9 
 
 
(19.8)
61.1 
Effect of exchanges of LLC Units (in shares)
 
 
 
 
36,203,000 
(36,203,000)
 
 
 
 
 
Effect of exchanges of LLC Units
 
 
 
 
 
(0.1)
28.7 
 
 
(28.7)
(0.1)
Repurchases of LLC Units (in shares)
 
 
 
 
 
(7,345,000)
 
 
 
 
 
Repurchases of LLC Units
 
 
 
 
 
 
(275.0)
 
 
 
(275.0)
Gain (loss) on swaps and foreign currency hedging, net
 
 
 
 
 
 
 
 
(48.5)
 
(48.5)
Change in foreign currency translation adjustment
(86.5)
 
 
 
 
 
 
 
(86.5)
 
(86.5)
Accumulated other comprehensive income (loss) attributable to non-controlling interests
 
 
 
 
 
 
 
 
46.6 
(46.6)
0 
Vesting of restricted stock units (in shares)
 
 
 
 
939,000 
 
 
 
 
 
 
Equity at end of period at Dec. 31, 2017
$ 546.5 
 
 
 
$ 0.1 
$ 0 
$ 484.4 
$ 87.7 
$ (85.7)
$ 60.0 
$ 546.5 
Ending balance (in shares) at Dec. 31, 2017
167,999,000 
132,993,000 
35,006,000 
 
132,993,000 
35,006,000 
 
 
 
 
 
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
 
 
 
Net income (loss)
$ 139.8 
$ (21.9)
$ (120.4)
Foreign exchange forward contracts gain (loss)
(9.3)
(0.4)
3.4 
Unrealized swap gain (loss), net
(39.2)
0 
0 
Change in foreign currency translation adjustment
(86.5)
(0.1)
0 
Comprehensive income (loss)
4.8 
(22.4)
(117.0)
Less: comprehensive income (loss) attributable to non-controlling interests
(43.2)
0 
0 
Comprehensive income (loss) attributable to GoDaddy Inc.
$ 48.0 
$ (22.4)
$ (117.0)
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Operating activities
 
 
 
Net income (loss)
$ 139.8 
$ (21.9)
$ (120.4)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
Depreciation and amortization
205.8 
160.1 
158.8 
Equity-based compensation
76.4 
56.8 
40.4 
Loss on debt extinguishment
7.3 
0 
21.4 
Deferred taxes
(34.5)
(3.8)
(3.0)
Tax receivable agreements liability adjustment
(123.2)
12.5 
0 
Domain portfolio cost of revenue
4.4 
10.7 
3.7 
Gain on sale of PlusServer
(33.2)
0 
0 
Other
8.9 
9.8 
8.0 
Changes in operating assets and liabilities, net of amounts acquired:
 
 
 
Registry deposits
(10.1)
(1.9)
(0.9)
Prepaid domain name registry fees
(13.5)
(22.8)
(30.7)
Accounts payable
(8.4)
19.6 
13.5 
Accrued expenses and other current liabilities
32.6 
10.0 
9.5 
Deferred revenue
220.0 
160.8 
165.6 
Other operating assets and liabilities
3.3 
(3.4)
(6.7)
Net cash provided by operating activities
475.6 
386.5 
259.2 
Investing activities
 
 
 
Purchases of short-term investments
(28.3)
(10.5)
(7.3)
Maturities of short-term investments
22.6 
8.4 
5.8 
Business acquisitions, net of cash acquired
(1,876.9)
(118.5)
(64.7)
Purchases of intangible assets
(52.0)
(1.3)
(23.5)
Proceeds received from sale of PlusServer
447.7 
0 
0 
Purchases of property and equipment
(83.2)
(61.5)
(55.8)
Other investing activities, net
0 
0 
1.1 
Net cash used in investing activities
(1,570.1)
(183.4)
(144.4)
Proceeds received from:
 
 
 
Acquisition Term Loan
1,421.4 
0 
0 
Bridge Loan
531.7 
0 
0 
Sales of Class A common stock, net of expenses
22.9 
0 
482.4 
Option and warrant exercises
61.1 
55.0 
12.7 
Issuance of Class A common stock under employee stock purchase plan
17.4 
5.0 
11.5 
Payments made for:
 
 
 
Repurchases of LLC Units and distributions to holders of LLC Units
(285.0)
(18.8)
(0.8)
Repayment of Bridge Loan
(596.6)
0 
0 
Repayment of term loans
(15.3)
(11.0)
(11.0)
Repayment of senior note
0 
0 
(300.0)
Repayment of revolving credit loan
0 
0 
(75.0)
Financing-related costs
(39.7)
0 
(13.5)
Capital leases and other financing obligations
(10.4)
(15.1)
(11.9)
Net cash provided by financing activities
1,107.5 
15.1 
94.4 
Effect of exchange rate changes on cash and cash equivalents
3.6 
(0.1)
(0.2)
Net increase in cash and cash equivalents
16.6 
218.1 
209.0 
Cash and cash equivalents, beginning of period
566.1 
348.0 
139.0 
Cash and cash equivalents, end of period
582.7 
566.1 
348.0 
Cash paid during the period for:
 
 
 
Interest on long-term debt, net of swap benefit
88.3 
46.5 
59.1 
Income taxes, net of refunds received
16.6 
4.0 
2.3 
Supplemental information for non-cash investing and financing activities:
 
 
 
Acquisition date fair value of contingent consideration
11.6 
5.6 
0.9 
Accrued capital expenditures at period end
7.4 
13.1 
5.0 
Property and equipment acquired under capital leases
$ 6.3 
$ 7.1 
$ 11.1 
Business Acquisitions
Business Acquisitions
Business Acquisitions
Acquisition of Host Europe Holdings Limited
On April 3, 2017, we completed the acquisition of HEG, a United Kingdom-based provider of domains, web hosting, applications hosting and managed hosting services to small and medium-sized customers throughout Europe. Pursuant to the terms of the purchase agreement, we purchased all of the outstanding shares of HEG and certain loan notes issued by Host Europe Finance Co. Ltd. for total consideration transferred of €1.7 billion. We funded the acquisition with the proceeds from the Acquisition Term Loan and the Bridge Loan, both of which are further described in Note 10, and incurred $18.6 million in nonrecurring transaction costs in connection with the acquisition, which were recognized within general and administrative expense. As a result of the acquisition, HEG became our wholly-owned subsidiary. We believe the acquisition will allow us to leverage HEG's existing footprint to accelerate our expansion in Europe through the delivery of a broader range of cloud-based products.
Our operating results include HEG's results from the closing date. The purchase price was preliminarily allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess recorded to goodwill. The recognition of goodwill, none of which is deductible for income tax purposes, was made based on the strategic and synergistic benefits we expect to realize from the acquisition. During the measurement period, which will not exceed one year from closing, we will continue to obtain information to assist us in finalizing the acquisition date fair values.
The following table summarizes the preliminary estimated fair values of the HEG assets acquired and liabilities assumed, as adjusted for certain measurement period adjustments primarily related to refinements in the fair values of acquired DTLs and the net assets held for sale:
Total purchase consideration(1)
 
$
1,849.5

 
 
 
Fair value of assets acquired:
 
 
 Cash and cash equivalents
 
27.2

 Other current assets
 
66.3

 Assets held for sale(2)
 
497.5

 Property and equipment, net
 
61.9

 Intangible assets, net
 
595.7

 Other assets
 
9.3

Amount attributable to assets acquired
 
1,257.9

Fair value of liabilities assumed:
 
 
 Accounts payable and accrued expenses
 
62.8

 Current portion of deferred revenue
 
45.5

 Liabilities directly associated with the assets held for sale(2)
 
93.0

 Other long-term liabilities
 
14.0

 Deferred tax liabilities
 
177.6

Amount attributable to liabilities assumed
 
392.9

Goodwill
 
$
984.5

 
 
(1)
The purchase consideration was translated using the Euro to U.S. dollar exchange rate in effect on the closing date, April 3, 2017, of approximately 1.066.
(2)
Assets held for sale and liabilities directly associated with the assets held for sale, represented those of HEG's PlusServer managed hosting business (PlusServer), which met the criteria for held for sale designation at the acquisition date and was sold in August 2017. See Note 4 for further discussion.
During the fourth quarter of 2017, we revised our preliminary legal entity purchase accounting valuations for HEG, primarily resulting in a shift of goodwill and intangible assets among various tax jurisdictions and functional currencies. The impact to such assets from movements in foreign currency rates subsequent to the date of acquisition are reflected in cumulative translation adjustment, a component of AOCI.
The purchase price allocation to identifiable finite-lived intangible assets acquired was as follows:
Finite-lived Intangible Assets
 
Estimated
Useful Lives
 
 
Trade names
 
10 years
 
$
75.2

Developed technology
 
6 years
 
62.4

Customer relationships
 
9 years
 
458.1

 
 
 
 
$
595.7


We valued trade names by applying the relief-from-royalty method, which is a variation of the income approach. This valuation method is based on the application of a royalty rate to the forecasted revenue expected from the trade names. Projected cash flows were then discounted using a rate of return reflecting the relative risk of achieving the cash flows as well as the time value of money. Our valuation of developed technology also used the relief-from-royalty method, in which the forecasted revenue associated with each of the domain and hosting technologies was estimated assuming useful lives ranging from six to eight years. A royalty rate, calculated considering factors such as market competition, profitability and market share, was applied to the forecasted revenue. The projected cash flows were then discounted using a rate of return reflecting the risk and uncertainty of their achievement relative to the overall business. Customer relationships were valued using the multi-period excess earnings method under the income approach, which reflects the present value of the projected cash flows expected to be generated by the customer relationship assets less charges representing the contribution of other assets to those cash flows. We determined the assumptions used in developing these valuations based on our future plans, historical data, current and anticipated market conditions, estimated growth rates and market comparables. The acquired finite-lived intangible assets have a total weighted-average amortization period of 8.8 years.
Property and equipment was valued using the cost approach, which estimates value by determining the current cost of replacing an asset with another of equivalent economic utility. The cost to replace a given asset reflects the estimated reproduction or replacement cost for the property, less an allowance for loss in value due to depreciation. Deferred revenue was valued using the income approach, in which we estimated costs required to fulfill the obligation associated with the deferred revenue and then applied an appropriate profit margin. The result was then discounted to represent value at a risk adjusted rate. Preliminary estimated DTLs primarily represent the expected future tax consequences of temporary differences between the fair values of the assets acquired and liabilities assumed and their respective tax bases.
The determination of fair value requires considerable judgment and is sensitive to changes in the underlying assumptions. Our estimates with respect to certain tax-related accounts are preliminary and subject to change pending the filing of pre-acquisition tax returns, which may result in material changes. Any qualifying changes will be recorded as adjustments to the respective assets and liabilities, with any residual amounts allocated to goodwill.
In 2017, HEG contributed approximately $155.1 million of our total revenue and a net loss of approximately $17.2 million within our income from continuing operations.
The following unaudited pro forma consolidated results of operations for 2017 and 2016 assume the closing of the HEG acquisition occurred as of January 1, 2016. The unaudited pro forma results include certain estimated purchase accounting adjustments, which are primarily comprised of amortization of acquired intangible assets, fair value adjustments to reduce deferred revenue assumed in the acquisition and interest expense on debt incurred to finance the acquisition. For the purpose of the pro forma, the short-term bridge financing was assumed to commence on January 1, 2016 and therefore no interest expense on this loan is included in 2017. In addition, we have made pro forma adjustments in 2017 to exclude nonrecurring transaction costs directly attributable to the acquisition. As required by U.S. GAAP, we have made pro forma adjustments to include these deal costs in 2016. The pro forma results of operations are presented for informational purposes only and do not include any anticipated cost savings or other effects of future integration efforts. As such, they may not be not indicative of the results we would have achieved if the acquisition had taken place on January 1, 2016, nor are they intended to be a projection of our future results.
 
Year Ended   December 31,
Pro forma Consolidated Results of Operations (unaudited)
2017
 
2016
 
 
 
 
Total revenue
$
2,315.1

 
$
2,058.4

Net income (loss) attributable to GoDaddy Inc.
143.9

 
(40.0
)
Net income (loss) from continuing operations attributable to GoDaddy Inc.
128.8

 
(46.1
)
Net income (loss) from continuing operations attributable to GoDaddy Inc. per share of Class A common stock - basic
1.23

 
(0.53
)
Net income (loss) from continuing operations attributable to GoDaddy Inc. per share of Class A common stock - diluted
0.75

 
(0.53
)

Other 2017 Acquisition
In April 2017, we completed an acquisition for consideration consisting of cash of $45.7 million, $9.0 million payable in future periods upon expiration of the contractual holdback period, $15.0 million of time-based milestone payments and additional contingent earn-out payments of up to $15.0 million subject to the achievement of certain revenue and integration milestones. We recognized a liability of $33.7 million representing the estimated aggregate acquisition-date fair value of the future payments. Pro forma financial information is not presented because this acquisition was not material to our results of operations.
The aggregate purchase price was allocated based upon our assessment of acquisition-date fair values with $63.9 million allocated to goodwill, none of which is tax deductible, $28.5 million to identified finite-lived intangible assets and $13.0 million of net liabilities assumed. Identified finite-lived intangible assets, which were valued using income-based approaches, consist of developed technology, customer relationships and trade names. The acquired finite-lived intangible assets have a total weighted-average amortization period of 5.5 years.
2016 Acquisitions
During 2016, we completed six acquisitions for cash of $125.5 million, including $7.0 million payable in future periods following the expiration of contractual holdback periods, and additional contingent earn-out payments of up to $6.0 million subject to the achievement of certain revenue targets. The aggregate purchase price was allocated based upon our assessment of acquisition-date fair values with $59.3 million attributed to indefinite-lived domain portfolio intangible assets, $55.0 million to goodwill, of which $37.5 million is not tax-deductible, $21.4 million to other identified finite-lived intangible assets and $11.3 million of net liabilities assumed. We also recorded a $1.1 million reduction of our existing deferred revenue from prior transactions with one of the acquired businesses. These acquisitions were not material to our results of operations, either individually or in the aggregate.
2015 Acquisitions
During 2015, we completed four acquisitions for cash of $64.7 million and additional immaterial contingent earn-out payments. The aggregate purchase price was allocated based upon our assessment of acquisition-date fair values with $60.2 million attributed to an indefinite-lived domain portfolio intangible asset, $3.2 million to other identified finite-lived intangible assets, $2.2 million to tax-deductible goodwill and $0.9 million of net liabilities assumed. These acquisitions were not material to our results of operations, either individually or in the aggregate.
Other Acquisition-Related Payments
During 2017, we made approximately $10.8 million of aggregate holdback and contingent consideration payments related to prior acquisitions. Payments in 2016 and 2015 were not material.
Organization and Background
Organization and Background
Organization and Background
Description of Business
We are a leading technology provider to small businesses, web design professionals and individuals, delivering simple, easy-to-use cloud-based products and outcome-driven, personalized customer care. We operate the world's largest domain marketplace and provide website building, hosting and security tools to help customers easily construct and protect their online presence and tackle the rapidly-changing technology landscape. As our customers grow, we provide applications helping them connect to their customers, manage and grow their businesses and get found online.
Organization
Following the completion of our initial public offering (IPO) and other related organizational transactions in 2015, we became the sole managing member of Desert Newco, LLC and its subsidiaries (Desert Newco). As a result, we consolidate its financial results and report non-controlling interests representing the economic interests held by its other members. Non-controlling interests exclude any net income (loss) attributable directly to GoDaddy Inc. We owned approximately 79% of Desert Newco's outstanding limited liability company units (LLC Units) as of December 31, 2017.
The pre-IPO organizational transactions were considered transactions between entities under common control. As a result, the financial statements for periods prior to the IPO have been adjusted to combine the previously separate entities for presentation purposes. See Note 6.
On December 16, 2011, investment funds managed by Kohlberg Kravis Roberts & Co. L.P. (KKR), Silver Lake Partners (Silver Lake) and Technology Crossover Ventures (TCV, and collectively with KKR and Silver Lake, the Sponsors) along with other investors purchased a controlling interest in Desert Newco from YAM Special Holdings, Inc. (YAM), an entity owned by Robert R. Parsons (Bob Parsons), Desert Newco's founder and a member of our board of directors.
Basis of Presentation
Our consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP), and include our accounts and the accounts of our subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation.
Prior Period Reclassifications
Reclassifications of certain immaterial prior period amounts have been made to conform to the current period presentation.
Use of Estimates
GAAP requires us to make estimates and assumptions affecting amounts reported in our financial statements. Our more significant estimates include:
•
the determination of the best estimate of selling price of the deliverables included in multiple-deliverable revenue arrangements;
•
the fair value of assets acquired and liabilities assumed in business acquisitions;
•
the assessment of recoverability of long-lived assets, including property and equipment, goodwill and intangible assets;
•
the estimated reserve for refunds;
•
the estimated useful lives of intangible and depreciable assets;
•
the grant date fair value of equity-based awards;
•
the fair value of financial instruments;
•
the recognition, measurement and valuation of current and deferred income taxes;
•
the recognition and measurement of amounts payable under tax receivable agreements (TRAs) or as tax distributions to Desert Newco's owners; and
•
the recognition and measurement of loss contingencies, indirect tax liabilities and certain accrued liabilities.
We periodically evaluate these estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual results may differ from our estimates.
Segment and Reporting Unit
As of December 31, 2017, our chief operating decision maker function was comprised of our Chief Executive Officer and Chief Operating Officer who collectively review financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance for the entire company. Accordingly, we have a single operating segment and reporting unit.
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, other highly liquid investments purchased with a remaining maturity of 90 days or less at the date of acquisition and receivables related to third-party payment processor transactions normally received within 72 hours. Amounts receivable for payment processor transactions totaled $26.9 million and $15.5 million at December 31, 2017 and 2016, respectively.
Short-Term Investments
Our short-term investments consist of certificates of deposit, time deposits and commercial paper with a remaining maturity in excess of 90 days at the date of acquisition, which are carried at fair value. The estimated fair value of our short-term investments is determined based on quoted market prices and approximated historical cost. We did not have any material realized or unrealized gains or losses on sales of short-term investments during any of the periods presented.
We classify our short-term investments as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell our short-term investments at any time for use in current operations or for other purposes, such as consideration for acquisitions, even if they have not yet reached maturity. As a result, we classify our short-term investments, including investments with maturities beyond 12 months, as current assets.
Registry Deposits
Registry deposits represent amounts on deposit with, or receivable from, various domain name registries to be used by us to make payments for future domain registrations or renewals.
Prepaid Domain Name Registry Fees
Prepaid domain name registry fees represent amounts charged by a registry at the time a domain is registered or renewed. These amounts are amortized to cost of revenue over the same period revenue is recognized for the related domain registration contracts.
Property and Equipment
Property and equipment is stated at cost. Depreciation, including for assets acquired under capital leases, is recorded over the shorter of the estimated useful life or the lease term of the applicable assets using the straight-line method beginning on the date an asset is placed in service. We regularly evaluate the estimated remaining useful lives of our property and equipment to determine whether events or changes in circumstances warrant a revision to the remaining period of depreciation. Maintenance and repairs are charged to expense as incurred.
Property and equipment consisted of the following:
 
 
Estimated
Useful Lives
 
December 31,
 
 
2017
 
2016
Computer equipment
 
3 years
 
$
355.0

 
$
283.3

Software
 
3 years
 
33.9

 
27.3

Land
 
Indefinite
 
9.0

 
9.0

Buildings, including improvements
 
5-40 years
 
147.4

 
123.1

Building acquired under lease financing obligation
 
40 years
 
18.1

 
18.1

Leasehold improvements
 
Lesser of useful life or remaining lease term
 
60.6

 
36.1

Other
 
1-20 years
 
22.0

 
12.1

Total property and equipment
 
 
 
646.0

 
509.0

Less: accumulated depreciation and amortization
 
 
 
(348.1
)
 
(278.0
)
Property and equipment, net
 
 
 
$
297.9

 
$
231.0


The gross carrying amount of property and equipment includes $31.5 million and $34.8 million of computer equipment and software under capital leases as of December 31, 2017 and 2016, respectively. The accumulated depreciation of the leased assets was $22.4 million and $23.8 million as of December 31, 2017 and 2016, respectively.
Depreciation and amortization expense related to property and equipment, including amounts related to assets under capital leases, was $88.8 million, $69.9 million and $61.3 million during 2017, 2016 and 2015, respectively.
Capitalized Internal-Use Software Costs
Costs incurred to develop software for internal-use during the application development phase and for our websites are capitalized and amortized over such software's estimated useful life. Costs related to the design or maintenance of internal-use software are included in technology and development expenses as incurred. Costs capitalized during all periods presented have not been material.
Goodwill and Indefinite-Lived Intangible Assets
Goodwill represents the excess of the purchase price over the estimated fair value of net tangible and identifiable intangible assets acquired in business combinations. Indefinite-lived intangible assets consist of the GoDaddy trade names and branding acquired from YAM and our acquired domain portfolio. Goodwill and indefinite-lived intangible assets are not amortized to earnings, but are assessed for impairment at least annually. As individual domains are sold, our indefinite-lived domain portfolio intangible asset is reduced by the allocated carrying cost of each domain, which is included in cost of revenue.
We assess impairment annually for our single reporting unit and our indefinite-lived trade names and branding during the fourth quarter of each year. We also perform an assessment at other times if events or changes in circumstances indicate the carrying value of the assets may not be recoverable. If, based on qualitative analysis, we determine it is more-likely-than-not the fair value of our reporting unit is less than its carrying amount, a quantitative impairment test is performed. Our qualitative analysis did not indicate impairment during any of the periods presented.
Our indefinite-lived domain portfolio is reviewed for impairment annually during the fourth quarter of each year. We also perform an assessment at other times if events or changes in circumstances indicate the carrying amount of the asset may not be fully recoverable. Any identified impairment loss is treated as a permanent reduction in the carrying amount of the asset. We did not record an impairment loss during any of the periods presented.
Long-Lived and Finite-Lived Intangible Assets
Finite-lived intangible assets are amortized over the following estimated useful lives:
Customer relationships
3-9 years
Developed technology
5-7 years
Trade names
3-10 years

Customer relationships are primarily amortized based on expected customer attrition. Developed technology and finite-lived trade names are amortized on a straight-line basis. We regularly evaluate the estimated remaining useful lives of our intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization.
Long-lived and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be fully recoverable. An impairment loss is recognized if the sum of the expected long-term undiscounted cash flows the asset is expected to generate is less than its carrying amount. Any write-downs are treated as permanent reductions in the carrying amount of the respective asset. We did not record an impairment loss during any of the periods presented.
Debt Issuance Costs
We defer and amortize issuance costs, underwriting fees and related expenses incurred in connection with the issuance of debt instruments using the effective interest method over the terms of the respective instruments. Debt issuance costs, other than those associated with our revolving credit loan, are reflected as a direct reduction of the carrying amount of the related debt liability. Debt issuance costs related to our revolving credit loan are reflected as an asset.
Derivative Financial Instruments
We are exposed to changes in foreign currency exchange rates as well as changes in interest rates associated with our variable-rate debt. Consequently, we use derivative financial instruments to manage and mitigate such risks. We do not enter into derivative transactions for speculative or trading purposes.
Our derivative financial instruments include foreign exchange forward contracts with financial institutions to hedge certain forecasted sales transactions denominated in currencies other than the United States (U.S.) dollar. In addition, we have entered into an interest rate swap on a portion of our long-term debt and a cross-currency swap on our intercompany debt to manage the variability of cash flows due to movements in interest rates and foreign currency exchange rates. We have designated each of these instruments as a cash flow hedge.
We expect each derivative instrument qualifying for hedge accounting will be highly effective at reducing the risk associated with the exposure being hedged. For each derivative instrument designated as a hedge, we formally document the related risk management strategy and objective, including identification of the hedging instrument, the hedged item and the risk of exposure, as well as how hedge effectiveness will be assessed prospectively and retrospectively over the instrument's term. To assess effectiveness of our swap instruments, we use regression analysis performed utilizing the Hypothetical Derivative Method to compare the change in fair value of the derivative instrument designated as the hedging instrument to the change in the fair value of a similarly modeled hypothetical derivative using the same discount rate. Following our initial quantitative assessment, we may perform subsequent assessments on a qualitative basis unless facts and circumstances change such that we can no longer qualitatively assert that our hedges are highly effective.
We reflect unrealized gains or losses on our cash flow hedges as a component of accumulated other comprehensive income (loss) (AOCI). Gains and losses, once realized, are recorded as a component of AOCI and are amortized to earnings over the same period in which the underlying hedged amounts are recognized. At inception, and each reporting period, we evaluate the effectiveness of each of our hedges, and all hedges were determined to be effective.
Our derivative instruments are recorded at fair value on a gross basis. For cash flow reporting purposes, proceeds received or amounts paid upon the settlement of a derivative instrument are classified in the same manner as the related item being hedged, primarily within cash flows from operating activities.
Leases
We lease office and data center space in various locations. Rent expense under operating leases is recognized on a straight-line basis over the lease term taking into consideration rent abatements, scheduled rent increases and any lease incentives.
We record assets and liabilities for estimated construction costs incurred under build-to-suit lease arrangements to the extent we are involved in the construction of structural improvements or take construction risk prior to commencement of a lease. Upon completion of the construction project, we evaluate our level of continuing involvement in the facility. If we maintain significant continuing involvement, we continue to account for the facility as a financing obligation. Otherwise, we record a sale of the facility back to the landlord, and accordingly, the related construction assets and liabilities are removed from our consolidated financial statements.
Foreign Currency
Our functional and reporting currency is the U.S. dollar. Assets denominated in foreign currencies are remeasured into U.S. dollars at period-end exchange rates. Foreign currency-based revenue and expense transactions are measured at transaction date exchange rates. Foreign currency remeasurement gains and losses are recorded in other income (expense), net and were $(1.5) million, $(4.6) million and $(3.5) million during 2017, 2016 and 2015, respectively.
For certain of our foreign subsidiaries whose functional currency is other than the U.S. dollar, we translate revenue and expense transactions at average exchange rates. We translate assets and liabilities at period-end exchange rates and include foreign currency translation gains and losses as a component of AOCI.
Revenue Recognition
Revenue is recorded when persuasive evidence of an arrangement exists, delivery of the product has occurred, the selling price is fixed or determinable and collectability is reasonably assured. Payments received in advance of revenue recognition are recorded as deferred revenue. Revenue is recognized net of applicable transaction-based taxes collected from customers.
We maintain a reserve to provide for refunds granted to customers. Our reserve is an estimate based on historical refund experience. Refunds reduce deferred revenue at the time they are granted and result in a reduced amount of revenue recognized over the contract term of the applicable product compared to the amount originally expected.
Consideration provided to customers for sales incentives or service disruption credits is recorded as a reduction of revenue at the later of the time the related revenue is recognized or when such consideration is offered. Such incentives and credits were not material in any of the periods presented.
Revenue arrangements with multiple deliverables are divided into separate units of accounting if each deliverable has stand-alone value to the customer. The majority of our revenue arrangements consists of multiple-element arrangements, with revenue for each unit of accounting recognized as the product or service is delivered to the customer. Our multiple-element arrangements may include a combination of some or all of the following: domain registrations, website hosting products, website building products and services, website security products and other cloud-based products. Each of these products has stand-alone value and is sold separately.
Consideration is allocated to each deliverable at the inception of an arrangement based on relative selling prices. We determine the relative selling price for each deliverable based on our vendor-specific objective evidence of selling price (VSOE) or our best estimate of selling price (BESP), if VSOE is not available. We have determined third-party evidence of selling price (TPE) is not a practical alternative due primarily to the significant variability among available third-party pricing information for similar products and differences in the features of our product and service offerings compared to other parties.
We establish VSOE for certain of our products when a consistent number of stand-alone sales of these products have been priced within a reasonably narrow range. We are unable to establish VSOE when we lack pricing consistency, primarily related to our marketing strategies and variability in pricing due to promotional activity. 
For products where VSOE is not available, we determine BESP by considering our overall pricing objectives and market conditions. Significant factors taken into consideration include historical and expected discounting practices, the size, volume and term length of transactions, customer demographics, the geographic areas in which our products and services are sold and our overall go-to-market strategy.
We sell our products and services directly to customers and also through a network of resellers. In certain cases, we act as a reseller of products provided by others. The determination of gross or net revenue recognition is reviewed on a product by product basis and is dependent on whether we act as principal or agent in the transaction. Revenue associated with sales through our network of resellers and for certain aftermarket domain sales is recorded on a gross basis as we have determined we are the primary obligor in the contractual arrangements with end customers. Commissions paid are expensed as a cost of revenue over the same period in which the associated revenue is recognized.
Our revenue is categorized as follows:
Domains. Domains revenue primarily consists of domain registrations and renewals, domain privacy, domain application fees, domain back-orders, aftermarket domain sales and fee surcharges paid to ICANN. Domain registrations provide a customer with the exclusive use of a domain during the applicable contract term. After the contract term expires, unless renewed, the customer can no longer access the domain. Consideration is recorded as deferred revenue at the time of sale, and revenue, other than for aftermarket domain sales, is recognized as the product or service is delivered to the customer. Aftermarket domain revenue is recognized when control of the domain is transferred to the buyer.
Hosting and presence. Hosting and presence revenue primarily consists of website hosting products, website building products and services, website security products, an online shopping cart and online visibility products. Consideration is recorded as deferred revenue at the time of sale, and revenue is recognized as the product or service is delivered to the customer.
Business applications. Business applications revenue primarily consists of third-party productivity applications, email accounts and email marketing tools. Consideration is recorded as deferred revenue at the time of sale, and revenue is recognized as the product or service is delivered to the customer.
Operating Expenses
Cost of Revenue (excluding depreciation and amortization)
Costs of revenue are the direct costs we incur in connection with selling an incremental product to our customers. Substantially all cost of revenue relates to domain registration fees paid to the various domain registries, payment processing fees, third-party commissions and licensing fees for third-party productivity applications.
Technology and Development
Technology and development expenses represent the costs associated with the creation, development and distribution of our products and websites. These expenses primarily consist of personnel costs associated with the design, development, deployment, testing, operation and enhancement of our products, as well as costs associated with the data centers and systems infrastructure supporting those products, excluding depreciation expense.
Marketing and Advertising
Marketing and advertising expenses represent the costs associated with attracting and acquiring customers, primarily consisting of fees paid to third parties for marketing and advertising campaigns across television and radio, search engines, online display, social media and event sponsorships. These expenses also include personnel costs and affiliate program commissions.
Advertising costs are expensed either as incurred, at the time a commercial initially airs or when a promotion first appears in the media. Advertising expenses were $205.8 million, $194.0 million and $177.6 million during 2017, 2016 and 2015, respectively. Prepaid advertising, which is included within prepaid expenses and other current assets, was $9.6 million and $1.3 million at December 31, 2017 and 2016, respectively. At December 31, 2017, we had contractual commitments for certain marketing agreements with future payments totaling $1.1 million due in 2018 and $0.2 million due in 2019.
Customer Care
Customer care expenses represent the costs to advise and service our customers, primarily consisting of personnel costs.
General and Administrative
General and administrative expenses primarily consist of personnel costs for our administrative functions, professional service fees, office rent for all locations, all employee travel expenses, acquisition-related expenses and other general costs.
Equity-Based Compensation
Equity-based awards are accounted for using the fair value method. Restricted stock units (RSUs) are measured based on the fair market value of the underlying common stock on the date of grant. Grant date fair values for stock options are determined using the Black-Scholes option pricing model and a single option award approach. The measurement date for performance vesting awards is the date on which the applicable performance criteria are approved by our board of directors. The fair value of shares issued under our employee stock purchase plan is estimated on the first day of each offering period using the Black-Scholes option pricing model. An estimate of future award forfeitures, which is based on historical data, is utilized in our equity-based compensation calculations. We regularly estimate when and if performance-based awards will be earned and record equity-based compensation expense only for awards considered probable of being earned.
Key assumptions used in the determination of fair value for stock options are as follows:
Expected term. The expected term represents the period the options are expected to be outstanding. Because of the lack of sufficient historical data necessary to calculate the expected term, we use the simple average of the vesting period and the contractual term to estimate the expected term.
Expected volatility. We determine the expected stock price volatility based on the historical volatilities of our peer group since there is not a sufficient trading history for our Class A common stock. Industry peers consist of several public companies in the technology industry similar to us in size, stage of life cycle and financial leverage. We intend to continue to consistently apply this process using the same or similar public companies until a sufficient trading history of our Class A common stock becomes available. If circumstances change such that the identified companies are no longer similar to us, we will revise our peer group to substitute more suitable companies in this calculation.
Expected dividend yield. We do not use a dividend rate due to our expectation of not paying dividends in the foreseeable future.
Risk-free interest rate. We base the risk-free interest rate on the yield curve of a zero-coupon U.S. Treasury bond with a maturity equal to the expected term of the option on the grant date.
The fair value of options granted was estimated using the following weighted-average assumptions:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Expected term (in years)
6.1

 
6.1

 
6.3

Expected volatility
37.4
%
 
37.7
%
 
39.1
%
Risk-free interest rate
2.0
%
 
1.4
%
 
1.7
%

Income Taxes
We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets (DTAs) and liabilities (DTLs) for the expected future tax consequences of events included in the financial statements. Under this method, we determine DTAs and DTLs on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on DTAs and DTLs is recognized in the period in which the enactment date occurs.
We recognize DTAs to the extent we believe these assets are more-likely-than-not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent results of operations.
We record uncertain tax positions on the basis of a two-step process in which (1) we determine whether it is more-likely-than-not the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions meeting the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority.
Interest and penalties related to income taxes are included in benefit (provision) for income taxes, and were not material during any of the periods presented.
On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into law. See Note 14 for further discussion.
Payable to Related Parties Pursuant to the TRAs
Concurrent with the completion of the IPO, we became a party to five TRAs with our pre-IPO owners. Under four of the TRAs, we are generally required to pay to certain pre-IPO owners approximately 85% of the amount of calculated tax savings, if any, we are deemed to realize (using the actual applicable U.S. federal income tax rate and an assumed combined state and local income tax rate) as a result of (1) any existing tax attributes associated with LLC Units acquired in the pre-IPO organizational transactions, the benefit of which is allocable to us as a result of such transactions (including the allocable share of Desert Newco's existing tax basis in its assets), (2) net operating loss (NOL) carryforwards available as a result of such transactions and (3) tax benefits related to imputed interest.
Under the fifth of these agreements, we are generally required to pay our other pre-IPO owners of approximately 85% of the amount of the calculated tax savings, if any, we are deemed to realize (using the actual applicable U.S. federal income tax rate and an assumed combined state and local income tax rate) as a result of (1) any step-up in tax basis created as a result of exchanges of their LLC Units (together with the corresponding shares of Class B common stock) for shares of our Class A common stock, (2) any existing tax attributes associated with their LLC Units, the benefit of which is allocable to us as a result of such exchanges (including the allocable share of Desert Newco's existing tax basis in its assets), (3) tax benefits related to imputed interest and (4) payments under the TRAs.
When LLC Units are exchanged, we receive certain tax attributes, including the original basis adjustments (the OBAs) created from the original acquisition of the LLC Units plus any anticipated basis adjustments. The OBAs entitle us to the depreciation and amortization previously allocable to the original owner of such units. The anticipated basis adjustments will increase, for tax purposes, our depreciation and amortization deductions. To the extent these deductions are used to reduce our taxable income, thereby resulting in actual tax savings, we will be required to pay the original owners approximately 85% of such savings, which is recorded as an additional liability under the TRAs when deemed probable. Adjustments to the liability under the TRAs based on changes in anticipated future taxable income are recorded in our statements of operations.
Unutilized depreciation and amortization deductions related to the OBAs and the anticipated basis adjustments are converted to NOL carryforwards. If the utilization is considered to be more-likely-than-not, a liability under the TRAs relating to NOL carryforwards is recorded.
Fair Value Measurements
Fair value is defined as an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. The framework for measuring fair value provides a three-tier hierarchy prioritizing inputs to valuation techniques used in measuring fair value as follows:
Level 1— Observable inputs such as quoted prices for identical assets or liabilities in active markets;
Level 2— Inputs, other than quoted prices for identical assets or liabilities in active markets, which are observable either directly or indirectly; and
Level 3— Unobservable inputs in which there is little or no market data requiring the reporting entity to develop its own assumptions.
We hold certain assets required to be measured at fair value on a recurring basis. These may include reverse repurchase agreements, commercial paper or other securities, which are classified as either cash and cash equivalents or short-term investments. We classify these assets within Level 1 or Level 2 because we use either quoted market prices or alternative pricing sources utilizing market observable inputs to determine their fair value. In addition, Level 2 assets and liabilities include derivative financial instruments associated with hedging activity, as further discussed in Note 11. Derivative financial instruments are measured at fair value on the contract date and are subsequently remeasured each reporting period using inputs such as spot rates, discount rates and forward rates. There are not active markets for the hedge contracts themselves; however, the inputs used to calculate the fair value of the instruments are tied to active markets.
Our contingent consideration liabilities are classified within Level 3 and valued using discounted cash flow valuation methods encompassing significant unobservable inputs. The inputs include estimated operating results scenarios for the applicable performance periods, probability weightings assigned to operating results scenarios and the discount rates applied. Our contingent consideration liabilities relate to future earn-out payments associated with our acquisitions. No material adjustments to the fair value of contingent consideration were made during any of the periods presented.
The following tables set forth assets and liabilities measured at fair value on a recurring basis:
 
December 31, 2017
Assets:
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents:
 
 
 
 
 
 
 
Reverse repurchase agreements(1)
$
—

 
$
130.0

 
$
—

 
$
130.0

Commercial paper
—

 
50.0

 
—

 
50.0

Short-term investments:
 
 
 
 
 
 
 
Certificates of deposit and time deposits
0.4

 
—

 
—

 
0.4

Commercial Paper
—

 
11.9

 
—

 
11.9

Derivative assets
—

 
—

 
—

 
—

Total assets measured and recorded at fair value
$
0.4

 
$
191.9

 
$
—

 
$
192.3

Liabilities:
 
 
 
 
 
 
 
Contingent consideration liabilities
$
—

 
$
—

 
$
20.7

 
$
20.7

Derivative liabilities
—

 
206.4

 
—

 
206.4

Total liabilities measured and recorded at fair value
$
—

 
$
206.4

 
$
20.7

 
$
227.1

 
 
(1)
Reverse repurchase agreements include a $70.0 million repurchase agreement with Morgan Stanley, callable with 31 days notice, and a $60.0 million one-week repurchase agreement with Wells Fargo.
 
December 31, 2016
Assets:
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents:
 
 
 
 
 
 
 
Reverse repurchase agreements(1)
$
—

 
$
130.0

 
$
—

 
$
130.0

Commercial paper
—

 
55.9

 
—

 
55.9

Short-term investments:
 
 
 
 
 
 
 
Certificates of deposit and time deposits
6.6

 
—

 
—

 
6.6

Derivative assets
—

 
0.7

 
—

 
0.7

Total assets measured and recorded at fair value
$
6.6

 
$
186.6

 
$
—

 
$
193.2

Liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$
—

 
$
0.1

 
$
—

 
$
0.1

Total liabilities measured and recorded at fair value
$
—

 
$
0.1

 
$
—

 
$
0.1

 
 
(1)
Reverse repurchase agreements include an $80.0 million repurchase agreement with Morgan Stanley, callable with 31 days notice, and a $50.0 million one-week repurchase agreement with Wells Fargo.
We have no other material assets or liabilities measured at fair value on a recurring basis.
Business Combinations
We include the results of operations of acquired businesses as of the respective acquisition dates. Purchase price is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values, with the excess recorded as goodwill. If applicable, we estimate the fair value of contingent consideration payments in determining the purchase price. Measurement period adjustments to provisional purchase price allocations are recognized in the period in which they are determined, with the effect on earnings of changes in depreciation, amortization or other income resulting from such changes calculated as if the accounting had been completed at the acquisition date. Contingent consideration is adjusted to fair value in subsequent periods as an increase or decrease in general and administrative expenses. Acquisition-related costs are expensed as incurred.
Concentrations of Risks
Our financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents and short-term investments. Although we deposit cash with multiple banks, these deposits, including those held in foreign branches of global banks, may exceed the amount of insurance provided on such deposits. These deposits may generally be redeemed upon demand and bear minimal risk.
No single customer represented over 10% of our total revenue for any period presented.
In order to reduce the risk of downtime of the products we provide, we have established data centers in various geographic regions. We have internal procedures to restore products in the event of disaster at any of our data center facilities. We serve our customers and users from data center facilities operated either by us or third parties, which are located in Arizona, California, Missouri, Virginia, New York, France, Germany, the Netherlands, Singapore and the United Kingdom. Even with these procedures for disaster recovery in place, the availability of our products could be significantly interrupted during the implementation of restoration procedures.
Recent Accounting Pronouncements
Revenue Recognition
In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard on revenue recognition from contracts with customers. The new standard requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled to in exchange for those goods or services. The FASB has issued several amendments to the new standard, including clarification on identifying performance obligations, principal-versus-agent implementation guidance, collectability assessment, sales taxes and other similar taxes collected from customers, noncash consideration, contract modification and completed contracts at transition. These amendments are intended to address implementation issues raised by stakeholders and provide additional practical expedients to reduce the cost and complexity of applying the new standard.
We will adopt the new standard effective January 1, 2018 using the modified retrospective transition method. We finalized our assessment of the new standard and the adoption of this guidance will not have a material impact on our consolidated financial statements or our internal controls over financial reporting.
Other Accounting Standards
In February 2016, the FASB issued new guidance related to accounting for leases. The new standard requires the recognition of assets and liabilities arising from lease transactions on the balance sheet and the disclosure of key information about leasing arrangements. For leases with a term of 12 months or less, a lessee can make an accounting policy election by class of underlying asset to not recognize an asset and corresponding liability. We will adopt the new standard on January 1, 2019. In transition, lessees are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. While we continue to evaluate the effect of adopting this guidance, we expect our operating leases disclosed in Note 12 will be subject to the new guidance. We will recognize right-of-use assets and lease liabilities in our consolidated balance sheets upon adoption, which will increase our total assets and liabilities.
In June 2016, the FASB issued new guidance for the accounting for credit losses on instruments that will require entities to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial instruments measured at amortized cost and also applies to some off-balance sheet credit exposures. The guidance is effective for annual and interim reporting periods beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the timing of our adoption and the expected impact of this new guidance.
In November 2016, the FASB issued new guidance requiring amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the amounts shown on the statement of cash flows. Our adoption of this guidance on January 1, 2018 is not expected to have a material impact.
In January 2017, the FASB issued new guidance clarifying the definition of a business for determining whether transactions should be accounted for as acquisitions or disposals of assets or businesses. If substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single asset or a group of similar assets, the assets acquired (or disposed of) are not considered to be a business. Our early adoption of this guidance effective October 1, 2017 did not have a material impact.
In January 2017, the FASB issued new guidance simplifying the goodwill impairment test, eliminating the requirement for an entity to determine the fair value of its assets and liabilities (including unrecognized assets and liabilities) at the impairment testing date following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, an entity will be required to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity will be required to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The guidance is effective for annual and interim reporting periods beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the timing of our adoption and the expected impact of this new guidance.
In May 2017, the FASB issued new guidance to amend the scope of modification accounting for share-based payment arrangements. The amendment provides guidance on the types of changes to the terms or conditions of share-based payment awards which would require an entity to apply modification accounting. Our adoption of this guidance on January 1, 2018 is not expected to have a material impact.
On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into law. See Note 14 for further discussion.
Sale of PlusServer
Sale of PlusServer
Sale of PlusServer
In connection with the HEG acquisition, we committed to a formal plan to sell PlusServer as its business model differs from ours. The operating results of PlusServer from the acquisition date to the date of its sale are reported within discontinued operations. On August 31, 2017, we sold all of the outstanding shares of PlusServer, receiving net proceeds of $447.7 million. As a result of the sale, we recorded a gain on disposal of $33.2 million, which includes the reclassification of the associated cumulative translation adjustment on PlusServer's net assets.
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill and Intangible Assets
The following table summarizes changes in our goodwill balance:
Balance at December 31, 2015
$
1,663.4

Goodwill related to 2016 acquisitions
55.0

Balance at December 31, 2016
1,718.4

Goodwill related to 2017 acquisitions
1,048.4

Impact of foreign currency translation
93.1

Balance at December 31, 2017
$
2,859.9


Intangible assets, net are summarized as follows:
 
December 31, 2017
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Domains Sold
 
Net Carrying
Amount
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
Trade names and branding
$
445.0

 
n/a

 
 n/a

 
$
445.0

Domain portfolio
171.0

 
n/a

 
$
(18.8
)
 
152.2

Finite-lived intangible assets:
 
 
 
 
 
 
 
Customer-related
868.0

 
$
(320.4
)
 
 n/a

 
547.6

Developed technology
184.5

 
(82.2
)
 
 n/a

 
102.3

Trade names
94.4

 
(15.5
)
 
 n/a

 
78.9

 
$
1,762.9

 
$
(418.1
)
 
$
(18.8
)
 
$
1,326.0

 
December 31, 2016
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Domains Sold
 
Net Carrying
Amount
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
Trade names and branding
$
445.0

 
n/a

 
 n/a

 
$
445.0

Domain portfolio
120.5

 
n/a

 
$
(14.4
)
 
106.1

Finite-lived intangible assets:
 
 
 
 
 
 
 
Customer-related
367.4

 
$
(245.4
)
 
 n/a

 
122.0

Developed technology
226.0

 
(187.0
)
 
 n/a

 
39.0

Trade names
11.9

 
(7.5
)
 
 n/a

 
4.4

 
$
1,170.8

 
$
(439.9
)
 
$
(14.4
)
 
$
716.5


During 2017, we completed three purchases of intangible assets for $52.0 million in cash. The assets purchased consisted of $50.5 million in indefinite-lived domain portfolios and $1.5 million in customer-related intangible assets. The purchased customer-related intangible assets were valued at cost and are amortized over 36 months. Transaction costs were immaterial and were expensed as incurred.
During 2015, we purchased a customer-related intangible asset for $22.5 million in cash. The purchased intangible asset was valued at cost and is amortized over 48 months based on expected customer attrition. Transaction costs were immaterial and were expensed as incurred.
Customer-related intangible assets, developed technology and trade names have weighted-average useful lives from the date of purchase of 104 months, 73 months and 111 months, respectively. Amortization expense was $117.0 million, $90.2 million and $97.5 million during 2017, 2016 and 2015, respectively. The weighted-average remaining amortization period for amortizable intangible assets was 86 months as of December 31, 2017.
Based on the balance of finite-lived intangible assets at December 31, 2017, expected future amortization expense is as follows:
Year Ending December 31:
 
2018
$
130.3

2019
111.1

2020
104.5

2021
81.8

2022
80.2

Thereafter
220.9

 
$
728.8

Stockholders' Equity
Stockholders' Equity
Stockholders' Equity
Initial Public Offering
On April 7, 2015, we completed our IPO and sold 26,000 shares of Class A common stock at a public offering price of $20.00 per share, including 2,500 shares purchased by affiliates of certain members of our board of directors (the Board). We received $480.6 million in proceeds, net of underwriting discounts, commissions and direct expenses. We primarily used the net IPO proceeds to make certain payments to the Sponsors and Bob Parsons as described in Note 18 and to repay the senior note payable to YAM and all amounts drawn on our revolving credit loan as described in Note 10.
In connection with the IPO, we completed a series of organizational transactions, including:
•
the amendment and restatement of Desert Newco's limited liability company agreement to, among other things, appoint us as sole managing member and reclassify all LLC Units as non-voting units;
•
the issuance of a total of 90,425 shares of Class B common stock to Desert Newco's pre-IPO owners on a one-to-one basis with the number of LLC Units owned; and
•
the acquisition, by merger, of four members of Desert Newco (the Reorganization Parties), for which we issued an aggregate of 38,826 shares of Class A common stock as consideration for the 38,826 aggregate LLC Units held by such entities (the Investor Corp Mergers). See Note 14.
Restatement of Certificate of Incorporation
Our amended and restated certificate of incorporation authorized the issuance of up to 1,000,000 shares of Class A common stock, up to 500,000 shares of Class B common stock and up to 50,000 shares of undesignated preferred stock, each having a par value of $0.001 per share. Shares of Class A common stock have both economic and voting rights. Shares of Class B common stock have no economic rights, but do have voting rights. Holders of Class A and Class B common stock are entitled to one vote per share and, except as otherwise required, will vote together as a single class on all matters on which stockholders generally are entitled to vote.
We are required to, at all times, maintain (i) a one-to-one ratio between the number of shares of Class A common stock outstanding and the number of LLC Units owned by us and (ii) a one-to-one ratio between the number of shares of Class B common stock and LLC Units owned by Desert Newco's pre-IPO owners. We may issue shares of Class B common stock only to the extent necessary to maintain these ratios. Shares of Class B common stock are transferable only together with an equal number of LLC Units if we, at the election of a pre-IPO owner, exchange LLC Units for shares of Class A common stock.
Secondary Offerings and LLC Unit Repurchase
We have completed several underwritten public offerings in which certain stockholders, including the Sponsors, YAM and certain of our executive officers sold shares of our Class A common stock. We did not receive any proceeds from the shares sold by the selling stockholders in these offerings. We used the net proceeds from the shares sold by us to pay expenses incurred in connection with the offerings. Each offering included the exchange of LLC Units (together with the corresponding shares of Class B common stock) for Class A common stock by the selling stockholders, which resulted in increases in additional paid-in capital, with offsetting reductions in non-controlling interests, and material increases to the liability under the TRAs (see Note 15). Significant details for each offering are as follows:
Offering Date
 
Offering Price Per Share ($)
 
Shares Sold by GoDaddy (#)
 
Proceeds Received by GoDaddy ($)
 
Aggregate Shares Sold by Selling Stockholders (#)
 
LLC Units Exchanged by Selling Stockholders (#)
 
Increase in Additional Paid-in Capital ($)
December 2017(1)
 
47.32

 
50

 
2.4

 
7,228

 
4,689

 
4.7

September 2017
 
44.00

 
50

 
2.2

 
20,000

 
13,774

 
10.8

May 2017
 
38.50

 
100

 
3.7

 
27,615

 
16,701

 
10.8

April 2016
 
30.25

 
—

 
—

 
18,975

 
10,382

 
8.8

 
 
(1)
Following the December 2017 secondary offering, TCV no longer owns shares of GoDaddy's common stock.
In May 2017, we repurchased 7,345 LLC units from the Sponsors and YAM for an aggregate of $275.0 million, or $37.44 per share, which is the same per share price, net of discounts and commissions, paid by the underwriters to the selling stockholders in the offering. In connection with this repurchase, the corresponding shares of Class B common stock held by the Sponsors and YAM were canceled. In May 2017, we also sold an aggregate of 521 shares of Class A common stock to certain executives for total proceeds of $19.2 million.
Equity-Based Compensation Plans
Equity-Based Compensation Plans
Equity-Based Compensation Plans
On March 31, 2015, we adopted the 2015 Equity Incentive Plan (the 2015 Plan) and reserved a total of 10,285 shares of Class A common stock for issuance thereunder. The shares reserved for issuance under the 2015 Plan also included up to 28,133 shares rolled over from our previous equity plan and from certain other option plans assumed in connection with acquisitions. The number of shares reserved for issuance are increased automatically, on January 1st of each year, by a number equal to the least of (i) 20,571 shares, (ii) 4% of the total shares of all classes of common stock outstanding as of the last day of the preceding year or (iii) such other amount as may be determined by our Board. On January 1, 2017, an additional 6,684 shares were reserved for issuance pursuant to the 2015 Plan. As of December 31, 2017, 16,024 shares were available for issuance as future awards under the 2015 Plan.
On March 31, 2015, we adopted the 2015 Employee Stock Purchase Plan (the ESPP) and reserved a total of 2,000 shares of Class A common stock for issuance thereunder. The number of shares reserved for issuance are increased automatically, on January 1st of each year, by a number equal to the least of (i) 1,000 shares, (ii) 1% of the total shares of all classes of common stock outstanding as of the last day of the preceding year or (iii) such other amount as may be determined by our Board. On January 1, 2017, an additional 1,000 shares were reserved for issuance pursuant to the ESPP. As of December 31, 2017, 2,551 shares were available for issuance under the ESPP.
We grant options at exercise prices equal to the fair market value of our Class A common stock on the grant date. We grant both options and RSUs vesting solely upon the continued employment of the recipient as well as awards vesting upon the achievement of annual or cumulative financial-based targets. We recognize the grant date fair value of equity-based awards as compensation expense over the required service period of each award, taking into account the probability of our achievement of associated performance targets.
We apply the straight-line attribution method to recognize equity-based compensation expense associated with awards not subject to graded vesting. For awards subject to graded vesting and performance based awards, we recognize expense separately for each vesting tranche. We also estimate when and if performance based awards will be earned. If an award is not considered probable of being earned, no amount of expense is recognized. If the award is deemed probable of being earned, expense is recorded over the estimated service period.
The following table summarizes our option activity:
 
 
Number of
Shares of Class A Common Stock (#)
 
Weighted-
Average
Grant-
Date Fair
Value ($)
 
Weighted-
Average
Exercise
Price ($)
 
Weighted-
Average
Remaining
Contractual
Life
(in years)
 
Aggregate
Intrinsic
Value ($)
Outstanding at December 31, 2014
 
26,652

 
 
 
8.27

 
 
 
 
Granted
 
3,926

 
9.77

 
23.66

 
 
 
 
Exercised
 
(1,749
)
 
 
 
7.65

 
 
 
35.5

Forfeited
 
(1,410
)
 
 
 
13.47

 
 
 
 
Outstanding at December 31, 2015
 
27,419

 
 
 
10.25

 
 
 
 
Granted
 
2,136

 
11.97

 
30.93

 
 
 
 
Exercised
 
(9,187
)
 
 
 
5.99

 
 
 
242.4

Forfeited
 
(1,740
)
 
 
 
17.25

 
 
 
 
Outstanding at December 31, 2016
 
18,628

 
 
 
14.06

 
 
 
 
Granted
 
2,077

 
15.07

 
38.03

 
 
 
 
Exercised
 
(6,000
)
 
 
 
10.18

 
 
 
187.1

Forfeited
 
(1,245
)
 
 
 
23.46

 
 
 
 
Outstanding at December 31, 2017
 
13,460

 
 
 
18.63

 
6.6
 
426.0

Vested at December 31, 2017
 
6,737

 
 
 
12.72

 
5.6
 
253.1


The following table summarizes our RSU activity:
 
 
Number of
Shares of Class A Common Stock (#)
 
Weighted-
Average
Grant-
Date Fair
Value ($)
Outstanding at December 31, 2014
 
87

 
 
Granted
 
52

 
31.50

Vested
 
(46
)
 
 
Forfeited
 
—

 
 
Outstanding at December 31, 2015
 
93

 
 
Granted
 
3,129

 
30.98

Vested
 
(241
)
 
 
Forfeited
 
(224
)
 
 
Outstanding at December 31, 2016
 
2,757

 
 
Granted
 
2,877

 
38.68

Vested
 
(939
)
 
 
Forfeited
 
(496
)
 
 
Outstanding at December 31, 2017
 
4,199

 
 

At December 31, 2017, total unrecognized compensation expense related to non-vested stock options and RSUs was $36.6 million and $87.8 million, respectively, with expected remaining weighted-average recognition periods of approximately 1.7 years and 2.5 years, respectively. We currently believe the performance targets related to the vesting of performance awards will be achieved. If such targets are not achieved, or are subsequently determined to not be probable of being achieved, we will not recognize any compensation expense for performance awards, and will reverse any previously recognized expense on such awards.
Deferred Revenue
Deferred Revenue
Deferred Revenue
Deferred revenue consisted of the following:
 
December 31,
 
2017
 
2016
Current:
 
 
 
Domains
$
638.5

 
$
531.2

Hosting and presence
444.7

 
370.8

Business applications
181.6

 
141.5

 
$
1,264.8

 
$
1,043.5

Noncurrent:
 
 
 
Domains
$
341.3

 
$
311.1

Hosting and presence
183.2

 
163.4

Business applications
72.3

 
58.2

 
$
596.8

 
$
532.7

Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following:
 
December 31,
 
2017
 
2016
Derivative liabilities
$
206.4

 
$
—

Accrued payroll and employee benefits
98.7

 
74.0

Tax-related accruals
78.5

 
15.8

Accrued acquisition-related expenses and acquisition consideration payable
32.9

 
13.4

Accrued marketing and advertising expenses
10.3

 
9.8

Current portion of capital lease obligation
4.8

 
6.9

Accrued other
38.0

 
23.1

 
$
469.6

 
$
143.0

Long-Term Debt
Long-Term Debt
Long-Term Debt
Long-term debt consisted of the following:
 
December 31,
 
2017
 
2016
Term loans (effective interest rate of 4.1% at December 31, 2017 and 4.9% at December 31, 2016)
$
2,482.3

 
$
1,072.5

Revolving Credit Loan
—

 
—

Total
2,482.3

 
1,072.5

Less: unamortized original issue discount on long-term debt(1)
(33.0
)
 
(30.5
)
Less: unamortized debt issuance costs(1)
(21.8
)
 
(2.3
)
Less: current portion of long-term debt
(16.7
)
 
(4.0
)
 
$
2,410.8

 
$
1,035.7

 
 
(1)
Original issue discount and debt issuance costs are amortized to interest expense over the life of the related debt instruments using the effective interest method.
Credit Facility
Our amended and restated secured credit agreement (the Credit Facility) included a $1,100.0 million original balance term loan maturing on May 13, 2021 and an available $150.0 million revolving credit loan maturing on May 13, 2019.
In February 2017, we refinanced the Credit Facility to provide for: (i) a $1,072.5 million seven-year term loan (the Term Loan), (ii) a second $1,425.0 million tranche (the Acquisition Term Loan), which was issued on April 3, 2017 upon the completion of our acquisition of HEG, and (iii) a $150.0 million five-year revolving credit facility, which increased to $200.0 million upon the completion of our acquisition of HEG (the Revolving Credit Loan). See Note 3 for further information regarding our acquisition of HEG.
The refinanced Term Loan was issued at a 0.25% discount on the face of the note at original issue for net proceeds of $1,069.8 million and matures on February 15, 2024. Pursuant to the terms of the amended credit agreement, we drew down the $1,425.0 million Acquisition Term Loan upon completion of the HEG acquisition. This loan was issued at a 0.25% discount at original issue for net proceeds of $1,421.4 million and has the same maturity date and interest rate as the Term Loan. A portion of the Acquisition Term Loan is hedged by an interest rate swap. See Note 11 for discussion of this hedging instrument and its impact on the interest rate associated with this loan.
The refinanced Revolving Credit Loan matures on February 15, 2022 and bears interest at a rate equal to, at our option, either (a) LIBOR plus a margin ranging from 2.00% to 2.50% per annum or (b) the higher of (i) the Federal Funds Rate plus 0.5%, (ii) the Prime Rate or (iii) one-month LIBOR plus 1.0% plus a margin ranging from 1.00% to 1.50% per annum, with the margins determined based on our first lien net leverage ratio. The refinanced Revolving Credit Loan also contains a financial covenant requiring us to maintain a maximum net leverage ratio of 5.75:1.00 when our usage exceeds 35.0% of the maximum capacity. The net leverage ratio is calculated as the ratio of first lien secured debt less cash and cash equivalents to consolidated EBITDA (as defined in the Credit Facility).
In November 2017, we refinanced the Credit Facility such that borrowings under the term loans bear interest at a rate equal to, at our option, either (a) LIBOR plus 2.25% per annum or (b) 1.25% per annum plus the highest of (i) the Federal Funds Rate plus 0.5%, (ii) the Prime Rate or (iii) one-month LIBOR plus 1.0%. In addition, the refinancing allows for an additional 0.25% reduction in the interest rate margins upon improvement in our corporate credit rating. The maturity date of the term loans was unchanged.
In evaluating the above refinancings, we compared the net present value cash flows of the previous instruments and the refinanced instruments to determine whether the terms of the new debt and original instruments were "substantially different" on a creditor-by-creditor basis. In each case, certain of the creditors in the loan syndication did not reinvest in the refinanced debt, and we accounted for their proportionate share of the unamortized original issue discount and deferred financing costs as an aggregate $2.0 million loss on debt extinguishment. As the cash flows for all of the continuing creditors varied by less than 10% between the old and new instruments, we concluded that debt modification accounting was appropriate and aggregate fees paid to the lenders of $3.7 million were recorded as additional discount. In addition, $3.3 million in aggregate fees paid to third parties were recorded as general and administrative expense.
In addition to paying interest on the outstanding principal under the term loans, we are required to pay a commitment fee of 0.375% per annum for any unutilized commitments under the Revolving Credit Loan.
Significant terms of the refinanced Credit Facility are as follows:
•
we are required to prepay outstanding term loans, subject to certain exceptions, with percentages of excess cash flow, proceeds of non-ordinary course asset sales or dispositions of property, insurance or condemnation proceeds and proceeds from the incurrence of certain debt;
•
we are restricted by certain covenants, including, among other things, limitations on our ability to incur additional indebtedness, sell assets, incur additional liens, make certain fundamental changes, pay distributions and make certain investments;
•
we are required to maintain certain financial ratios; and
•
all obligations are unconditionally guaranteed by all of our material domestic subsidiaries and is secured by substantially all of our and such subsidiaries real and personal property.
In April 2015, we made a payment of $75.0 million to repay all amounts drawn on the Revolving Credit Loan. At December 31, 2017, we have $200.0 million available for borrowing under the Revolving Credit Loan, and were not in violation of any covenants of the Credit Facility.
The estimated fair value of the term loans was $2,488.5 million at December 31, 2017 based on observable market prices for these loans, which are traded in a less active market and therefore classified as a Level 2 fair value measurement.
Bridge Loan
On April 3, 2017, we entered into a credit agreement pursuant to which we borrowed an aggregate principal amount of €500 million (approximately $533.0 million on the date of issuance) (the Bridge Loan) in connection with the HEG acquisition. Following the sale of PlusServer on August 31, 2017, as further discussed in Note 4, we prepaid the Bridge Loan in its entirety and the underlying bridge credit agreement was canceled. Accordingly, we recognized a $5.3 million loss on debt extinguishment, representing the remaining unamortized original issue discount and debt issuance costs on this loan. As the Bridge Loan was contractually required to be repaid with any proceeds received from the sale of PlusServer, interest expense attributable to the Bridge Loan of $12.4 million in 2017 was recorded within discontinued operations.
Senior Note Repayment
In April 2015, we made a payment to YAM totaling $316.0 million to repay a senior note, consisting of principal of $300.0 million, prepayment premium of $13.5 million, which was recorded as a loss on debt extinguishment, and accrued interest of $2.5 million. Additionally, in connection with the repayment, $7.9 million of unamortized original issue discount and deferred financing costs were recorded as a loss on debt extinguishment. Following this payment, the senior note was canceled.
Future Debt Maturities
Aggregate principal payments, exclusive of any unamortized original issue discount and debt issuance costs, due on long-term debt as of December 31, 2017 are as follows:
Year Ending December 31:
 
2018
$
25.0

2019
25.0

2020
25.0

2021
25.0

2022
25.0

Thereafter
2,357.3

 
$
2,482.3

Derivatives and Hedging
Derivatives and Hedging
Derivatives and Hedging
We are exposed to changes in foreign currency exchange rates, primarily relating to debt and certain forecasted sales transactions denominated in currencies other than the U.S. dollar, as well as to changes in interest rates as a result of our variable-rate debt. Consequently, we use derivative financial instruments to manage and mitigate such risk. We do not enter into derivative transactions for speculative or trading purposes.
The following table summarizes our outstanding derivative instruments, all of which are designated as cash flow hedges, on a gross basis:
 
Notional Amount
 
Derivative Assets
 
Derivative Liabilities
 
December 31, 2017
 
December 31, 2016
 
December 31, 2017
 
December 31, 2016
 
December 31, 2017
 
December 31, 2016
 
 
 
 
 
Balance Sheet Location(2)
Fair Value
 
Balance Sheet Location(2)
Fair Value
 
Balance Sheet Location(2)
Fair Value
 
Balance Sheet Location(2)
Fair Value
Derivative Instrument:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 2:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contracts
$
241.3

 
$
—

 
PP
$
—

 
PP
$
0.7

 
ACC
$
4.4

 
ACC
$
0.1

Cross-currency swap (1)
1,478.3

 
—

 
PP
—

 
PP
—

 
ACC
182.9

 
ACC
—

Interest rate swap
1,315.5

 
—

 
PP
—

 
PP
—

 
ACC
19.1

 
ACC
—

     Total hedges
$
3,035.1

 
$
—

 
 
$
—

 
 
$
0.7

 
 
$
206.4

 
 
$
0.1

 
 
(1)
The notional value for the cross-currency swap reflects €1,234.0 million translated to U.S. dollar at the foreign currency rate in effect at December 31, 2017 of approximately 1.20.
(2)
PP = Prepaid expenses and other current assets; ACC = Accrued expenses and other current liabilities.
The following table summarizes the effect of our designated cash flow hedging derivative instruments on AOCI:
 
Unrealized Gains (Losses) Recognized in Other Comprehensive Income
 
Year Ended December 31,
 
2017
 
2016
 
2015
Derivative Instrument:
 
 
 
 
 
Foreign exchange forward contracts(1)
$
(9.3
)
 
$
(0.4
)
 
$
3.4

Cross-currency swap
(20.1
)
 
—

 
—

Interest rate swap
(19.1
)
 
—

 
—

     Total hedges
$
(48.5
)
 
$
(0.4
)
 
$
3.4

 
 
(1)
Amounts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI.
The following table summarizes the locations and amounts of gains (losses) recognized within earnings related to our cash flow hedging relationships:
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
Revenue
 
Interest Expense
 
Other Income (Expense), Net
 
Revenue
 
Interest Expense
 
Other Income (Expense), Net
 
Revenue
 
Interest Expense
 
Other Income (Expense), Net
Foreign Exchange Forward Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reclassified from AOCI into income
$
0.8

 
$
—

 
$
—

 
$
1.8

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Cross-Currency Swap:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reclassified from AOCI into income (1)
—

 
21.6

 
(163.8
)
 
—

 
—

 
—

 
—

 
—

 
—

Interest Rate Swap:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reclassified from AOCI into income
—

 
(12.8
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

     Total hedges
$
0.8

 
$
8.8

 
$
(163.8
)
 
$
1.8

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
 
(1)
The amount reflected in other income (expense), net for 2017 includes $162.8 million reclassified from AOCI to offset the earnings impact of the remeasurement of the Euro-denominated intercompany loan hedged by the cross-currency swap.
As of December 31, 2017, we estimate that approximately $11.0 million of net deferred gains related to our cash flow hedges will be recognized in earnings over the next 12 months. No amounts were excluded from our effectiveness testing during any of the periods presented.
Risk Management Strategies
Foreign Exchange Forward Contracts
We enter into foreign exchange forward contracts with financial institutions to hedge certain forecasted sales transactions denominated in foreign currency. We designate these forward contracts as cash flow hedges, which are recognized as either assets or liabilities at fair value. At December 31, 2017, the total notional amount of such contracts was $241.3 million, all having maturities of twelve months or less.
Cross-Currency Swap Contract
In April 2017, in order to manage variability due to movements in foreign currency rates related to a Euro-denominated intercompany loan, we entered into a five-year cross-currency swap arrangement (the Cross-Currency Swap). The Cross-Currency Swap, which matures on April 3, 2022, had an amortizing notional amount of €1,243.3 million at inception (approximately $1,325.4 million). It converts the 3.00% fixed rate Euro-denominated interest and principal receipts on the intercompany loan into fixed U.S. dollar interest and principal receipts at a rate of 5.44%. Pursuant to the contract, the Euro notional value will be exchanged for the U.S. dollar notional value at maturity. The Cross-Currency Swap has been designated as a cash flow hedge. Accordingly, it is recognized as an asset or liability at fair value and the unrealized gains and losses on the contract are included in gain (loss) on swaps and foreign currency hedging, net within AOCI. Gains and losses are reclassified to interest income or expense over the period the hedged loan affects earnings. As such, amounts recorded in other comprehensive income (loss) (OCI) will be recognized in earnings within or against interest expense when the hedged interest payment is accrued each month. In addition, an amount is reclassified from AOCI to other income (expense), net each reporting period to offset the earnings impact of the hedged instrument.
Interest Rate Swap Contract
In April 2017, in connection with the closing of the Acquisition Term Loan, we entered into a five-year pay-fixed rate, receive-floating rate interest rate swap arrangement (the Interest Rate Swap) to effectively convert a portion of the variable-rate debt to fixed. The Interest Rate Swap, which matures on April 3, 2022, had an amortizing notional amount of $1,325.4 million at inception and swaps the variable interest rate on our LIBOR-based borrowings for a fixed rate of 5.44%. The objective of the Interest Rate Swap, which is designated as a cash flow hedge and recognized as an asset or liability at fair value, is to manage the variability of cash flows in the interest payments related to the portion of the variable-rate debt designated as being hedged. The unrealized gains and losses on the contract are included in gain (loss) on swaps and foreign currency hedging, net within AOCI. Amounts recorded in OCI will be recognized in earnings within or against interest expense when the hedged interest payment is accrued each month.
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
Lease Financing Obligation
In April 2013, we entered into an 11-year lease agreement for new office space in Tempe, Arizona under which we occupied the total available space commencing in September 2014. The lease agreement allowed for rent abatement during the first full year, with rent payments of $0.3 million per month thereafter, consisting of both base rent and a tenant improvement allowance. The lease provides us with two consecutive options to extend the term for five years each. In the event we choose to extend the term of the lease, the monthly rent for each additional term will be based on 95% of the then-prevailing market rate.
As a result of our involvement during the construction period, we were considered to be the owner of the construction project for accounting purposes. Upon completion of construction in September 2014, we did not meet the sale-leaseback criteria for derecognition of the building assets and liabilities; therefore, we were required to record an asset representing the total cost of the building paid by the lessor and the lease is accounted for as a financing obligation. We capitalized $18.1 million of construction costs incurred by the lessor, which are being depreciated over an estimated useful life of 40 years. Rent payments are treated as principal and interest payments on the lease financing obligation, with an amount recorded as estimated land lease expense each period. The lease financing obligation at the end of the lease term will approximate the net book value of the building to be relinquished to the lessor. As of December 31, 2017, the lease financing obligation totaled $19.6 million, of which $19.4 million is included in other long-term liabilities.
Future minimum payments under this lease as of December 31, 2017 are as follows:
Year Ending December 31:
 
2018
$
3.2

2019
3.2

2020
3.5

2021
3.6

2022
3.6

Thereafter
8.4

 
$
25.5


Leases
We lease office space, data center space (including commitments for specified levels of power) and certain computer equipment under non-cancelable operating and capital leases expiring at various dates through March 2028. Total operating lease rent expense was $38.3 million, $43.3 million and $42.2 million during 2017, 2016 and 2015, respectively.
Future minimum lease obligations under capital leases and non-cancelable operating leases with initial terms in excess of one year at December 31, 2017 are as follows:
Year Ending December 31:
 
Capital
Leases
 
Operating
Leases
2018
 
$
5.1

 
$
28.8

2019
 
3.5

 
24.7

2020
 
1.1

 
17.4

2021
 
—

 
14.6

2022
 
—

 
12.5

Thereafter
 
—

 
41.7

Total minimum payments
 
9.7

 
$
139.7

Less: amount representing interest
 
(0.4
)
 
 
Capital lease obligation
 
$
9.3

 
 

Service Agreements
We have entered into long-term agreements with certain vendors to provide for software and equipment maintenance, specified levels of bandwidth and other services. Under these arrangements, we are required to make periodic payments. Future minimum obligations under these non-cancelable agreements with initial terms in excess of one year at December 31, 2017 are as follows:
Year Ending December 31:
 
2018
$
27.6

2019
15.9

2020
7.7

2021
4.9

2022
1.9

Thereafter
1.3

Total minimum payments
$
59.3


Litigation
From time-to-time, we are a party to litigation and subject to claims incidental to our business, including patent infringement litigation and trademark infringement claims, as well as putative class actions, commercial and consumer protection claims, labor and employment claims, breach of contract claims and other asserted and unasserted claims. We investigate claims as they arise and accrue estimates for resolution of legal and other contingencies when losses are probable and estimable. The amounts currently accrued for such matters are not material. While the results of such normal course claims and legal proceedings, regardless of the underlying nature of the claims, cannot be predicted with certainty, management does not believe, based on current knowledge and the likely timing of resolution of various matters, any additional reasonably possible potential losses above the amounts accrued for such matters would be material. Regardless of the final outcomes, legal proceedings may have an adverse effect on us because of defense costs, diversion of management resources and other factors.
Indemnifications
In the normal course of business, we have made indemnities under which we may be required to make payments in relation to certain transactions, including to our directors and officers to the maximum extent permitted under applicable state laws and indemnifications related to certain lease agreements. In addition, certain advertiser and reseller partner agreements contain indemnification provisions, which are generally consistent with those prevalent in the industry. We have not incurred material obligations under indemnification provisions historically, and do not expect to incur material obligations in the future. Accordingly, we have not recorded any liabilities related to such indemnities as of December 31, 2017 and 2016.
We include service level commitments to our customers guaranteeing certain levels of uptime reliability and performance for our hosting and premium DNS products. These guarantees permit those customers to receive credits in the event we fail to meet those levels, with exceptions for certain service interruptions including but not limited to periodic maintenance. We have not incurred any material costs as a result of such commitments during any of the periods presented, and have not recorded any liabilities related to such obligations as of December 31, 2017 and 2016.
Indirect Taxes
We are subject to indirect taxation in some, but not all, of the various states and foreign jurisdictions in which we conduct business. Laws and regulations attempting to subject communications and commerce conducted over the Internet to various indirect taxes are becoming more prevalent, both in the U.S. and internationally, and may impose additional burdens on us in the future. Increased regulation could negatively affect our business directly, as well as the businesses of our customers. Taxing authorities may impose indirect taxes on the Internet-related revenue we generate based on regulations currently being applied to similar, but not directly comparable, industries. There are many transactions and calculations where the ultimate indirect tax determination is uncertain. In addition, domestic and international indirect taxation laws are complex and subject to change. We may be audited in the future, which could result in changes to our indirect tax estimates. We continually evaluate those jurisdictions in which nexus exists, and believe we maintain adequate indirect tax accruals.
As of December 31, 2017 and 2016, our accrual for estimated indirect tax liabilities was $18.8 million and $6.1 million, respectively, reflecting our best estimate of the probable liability based on an analysis of our business activities, revenues subject to indirect taxes and applicable regulations. Although we believe our indirect tax estimates and associated liabilities are reasonable, the final determination of indirect tax audits, litigation or settlements could be materially different than the amounts established for indirect tax contingencies. Due to the complexity and uncertainty surrounding indirect tax laws in certain international locations, we believe it is reasonably possible, based on currently available information and analysis, that we may incur additional losses related to indirect taxes, which management estimates to be within the range of $0 to $10.0 million as of December 31, 2017.
Defined Contribution Plan
Defined Contribution Plan
Defined Contribution Plan
We maintain defined contribution 401(k) plans covering eligible U.S. employees, who may contribute up to 100% of their compensation, subject to limitations established by the Internal Revenue Code. We match employee contributions on a discretionary basis. Expense for our matching contributions was $9.9 million, $8.5 million and $8.6 million during 2017, 2016 and 2015, respectively.
We maintain defined contribution benefit plans covering eligible foreign employees. Expense related to such plans was not material in any period presented.
Income Taxes
Income Taxes
Income Taxes
Overview
We are subject to U.S. federal, state and foreign income taxes with respect to our allocable share of any taxable income or loss of Desert Newco, as well as any stand-alone income or loss we generate. Desert Newco has been and will continue to be treated as a partnership for U.S. income tax purposes and for most applicable state and local income tax purposes. As such, Desert Newco is considered a pass-through entity and generally does not pay income taxes on its taxable income in most jurisdictions. Instead, Desert Newco's taxable income or loss is passed through to and included in the taxable income or loss of its members, including us. Despite its partnership treatment, Desert Newco is liable for income taxes in certain foreign jurisdictions in which it operates, in those states not recognizing its pass-through status and for certain of its subsidiaries not taxed as pass-through entities. We have acquired the outstanding stock of various domestic and foreign entities taxed as corporations, which are now owned 100% by us or our subsidiaries. Where required or allowed, these subsidiaries also file and pay tax as a consolidated group for U.S. federal and state income tax purposes and internationally, primarily within the United Kingdom and Germany. We anticipate this structure to remain in existence for the foreseeable future.
Tax Cuts and Jobs Act of 2017
On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the TCJA) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a U.S. federal corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings. We have calculated the impact of the TCJA in accordance with our understanding of the TCJA and guidance available as of the date of this filing, as shown below. The one-time transition tax on the mandatory deemed repatriation of foreign earnings had no effect on our benefit (provision) for income taxes as a result of an estimated accumulated deficit in the earnings of our controlled foreign corporations as of the measurement date. We do not expect the provisions of the TCJA unrelated to the rate reduction or one-time transition tax to have a material impact, primarily due to our corporate structure.
On December 22, 2017, the SEC issued guidance to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the TCJA. The completion of our 2017 income tax returns, future guidance and additional information and interpretations with the respect to the TCJA may cause us to adjust the provisional amounts recorded as of December 31, 2017. In accordance with the SEC's guidance, we will record such adjustments as current tax expense in the period in which relevant guidance or additional information becomes available and our analysis is complete.
In January 2018, the FASB released guidance on the accounting for the global intangible low-taxed income (GILTI) provisions of the TCJA. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance allows an accounting policy election either to account for deferred taxes related to GILTI inclusions or to treat any taxes on GILTI inclusions as period costs. We are still evaluating the potential impacts.
Benefit (Provision) for Income Taxes
Our tax benefit (provision) includes U.S. federal, state and foreign income taxes. The domestic and foreign components of our income (loss) from continuing operations before income taxes were as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
U.S.
$
180.6

 
$
(28.5
)
 
$
(121.2
)
Foreign
(73.8
)
 
7.0

 
0.6

Income (loss) from continuing operations before income taxes
$
106.8

 
$
(21.5
)
 
$
(120.6
)
Our benefit (provision) for income taxes was as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Current:
 
 
 
 
 
Federal
$
(1.4
)
 
$
(0.3
)
 
$
(0.3
)
State
(0.6
)
 
(0.3
)
 
(0.1
)
Foreign
(9.5
)
 
(3.5
)
 
(2.4
)
 
(11.5
)
 
(4.1
)
 
(2.8
)
Deferred:
 
 
 
 
 
Federal
9.6

 
3.1

 
2.4

State
0.8

 
0.3

 
0.4

Foreign
20.0

 
0.3

 
0.2

 
30.4

 
3.7

 
3.0

Benefit (provision) for income taxes
$
18.9

 
$
(0.4
)
 
$
0.2


A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate was as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Expected benefit (provision) at U.S. federal statutory tax rate of 35%
$
(37.4
)
 
$
7.5

 
$
42.2

Effect of TCJA U.S. federal rate reduction from 35% to 21%, net of the effect on valuation allowances
7.9

 
—

 
—

Effect of Desert Newco's corporate subsidiaries
27.4

 
(0.1
)
 
2.8

TRA liability adjustment
24.3

 
(3.8
)
 
—

Foreign earnings
(15.3
)
 
(0.9
)
 
(2.2
)
State taxes, net of federal benefit
(3.1
)
 
0.1

 
5.4

Income of non-controlling interests
0.9

 
(1.8
)
 
(15.6
)
Other
(0.4
)
 
0.1

 
(0.7
)
Effect of changes in valuation allowances, excluding effect of TCJA U.S. federal rate reduction
14.6

 
(1.5
)
 
(31.7
)
Benefit (provision) for income taxes
$
18.9

 
$
(0.4
)
 
$
0.2


The TCJA changed the U.S. federal corporate statutory tax rate from 35% to 21%. The application of this rate reduction to the ending DTAs and DTLs in our U.S. entities provisionally impacted our benefit for income taxes by a net of $7.9 million. This net benefit results from a $327.4 million reduction in deferred tax expense, which was primarily offset by a $335.3 million increase in the associated valuation allowance as we concluded, based primarily on our limited operating history and our historical losses, that the majority of our U.S. DTAs will more-likely-than-not not be realized. The increase in the impact of foreign earnings primarily results from our acquisition of HEG. The TRA liability adjustment primarily represents the non-deductible portion of the benefit resulting from the provisional decrease in the liability under the TRAs due to the TCJA rate reduction.
Deferred Taxes
The components of our net (DTL) DTAs were as follows:
 
December 31,
 
2017
 
2016
DTAs:
 
 
 
NOLs
$
247.8

 
$
164.8

Credits and incentives
3.0

 
2.7

Investment in Desert Newco
429.9

 
180.6

Deferred interest
10.9

 
10.8

TRA liability
16.8

 
14.1

Unrealized gains/losses
9.7

 
—

Other
4.4

 
2.2

Valuation allowance
(711.1
)
 
(361.5
)
Total DTAs
11.4

 
13.7

DTLs:
 
 
 
Identified intangible assets
(155.8
)
 
(8.7
)
Total DTLs
(155.8
)
 
(8.7
)
Net (DTL) DTAs
$
(144.4
)
 
$
5.0


During 2017, the DTAs associated with our investment in Desert Newco increased $674.6 million due to exchanges of LLC Units in the secondary offerings discussed in Note 6, exchanges of additional LLC Units and stock option exercises. Our DTAs were provisionally reduced by a net of $7.9 million as a result of the TCJA U.S. federal rate reduction, as discussed above. Preliminary purchase accounting for our 2017 acquisitions resulted in an increase to our DTLs of $173.7 million, primarily related to intangible assets not deductible for tax purposes. In 2017, we also recorded additional DTAs of $201.6 million as a result of our portion of Desert Newco's losses, primarily those resulting from the impact of an Internal Revenue Service approved filing election made in the current year, offset by a provisional decrease of $118.7 million as a result of the TCJA rate reduction.
As a result of the pre-IPO organizational transactions and the IPO, we acquired LLC Units and have recognized a DTA for the difference between the financial reporting and tax basis of our investment in Desert Newco. In addition, we acquired certain tax attributes from these transactions, including $89.2 million of NOL and credit carryforwards, net of tax. During 2016, the DTAs associated with our investment in Desert Newco increased $183.6 million due to exchanges of LLC Units in the secondary offering discussed in Note 6, exchanges of additional LLC Units and stock option exercises. In 2016, we also recorded additional DTAs of $36.7 million as a result of our portion of Desert Newco's losses.
Based primarily on our limited operating history and our historical losses, we believe there is significant uncertainty as to when we will be able to utilize our NOLs, credit carryforwards and other DTAs. Therefore, we have recorded a valuation allowance against the DTAs for which we have concluded it is more-likely-than-not they will not be realized. As part of the acquisition of HEG, our valuation allowance increased as we believe there is significant uncertainty as to our ability to utilize our NOLs and other carryforwards related to the HEG entities in the United Kingdom.
As of December 31, 2017, we have U.S. federal, state and foreign gross NOLs, credits and incentives, a portion of which will begin to expire in 2030 and continue through 2036, as follows:
 
Gross NOLs, Credits and Incentives
 
Portion Subject to a Valuation Allowance
Federal NOLs and credits
$
913.5

 
$
893.9

State NOLs, credits and incentives
1,118.8

 
1,101.0

Foreign NOLs
30.3

 
30.0

Total NOLs, credits and incentives
$
2,062.6

 
$
2,024.9


Other
We have filed all income tax returns for years through 2016, other than for Germany for which the 2016 pre-acquisition HEG tax returns have not yet been filed. These returns are subject to examination by the taxing authorities in the respective jurisdictions, generally for three or four years after they were filed. Based on our analysis of tax positions taken on income tax returns filed, we have determined no material liabilities related to uncertain income tax positions were required. Although we believe the amounts reflected in our tax returns substantially comply with applicable U.S. federal, state and foreign tax regulations, the respective taxing authorities may take contrary positions based on their interpretation of the law. A tax position successfully changed by a taxing authority could result in an adjustment to our benefit for income taxes in the period in which a final determination is made.
As of December 31, 2017, we have provided income taxes on the earnings of foreign subsidiaries, except to the extent such earnings are considered indefinitely reinvested. We have determined the amount of unrecognized DTL related to these temporary differences to be immaterial.
Income (Loss) Per Share
Income (Loss) Per Share
Income (Loss) Per Share
Basic income (loss) per share is computed by dividing net income (loss) attributable to GoDaddy Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted income (loss) per share is computed giving effect to all potentially dilutive shares. In periods when we have a net loss, potentially issuable shares are excluded from the calculation of earnings per share as their inclusion would have an antidilutive effect.
For purposes of calculating loss per share for periods prior to the IPO, including 2015 for which a portion of the period preceded the IPO, we treated the pre-IPO organizational transactions as a merger of entities under common control. Therefore, we have retrospectively reflected loss per share as though these transactions had occurred as of the earliest period presented. For all periods prior to the IPO, we allocated our historical net loss between the Class A stockholders and the non-controlling interests based on their respective share ownership. These calculations do not consider the 26,000 shares of Class A common stock sold in our IPO.
A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per share is as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Numerator:
 
 
 
 
 
Income (loss) from continuing operations
$
125.7

 
$
(21.9
)
 
$
(120.4
)
Income from discontinued operations, net of income taxes
14.1

 
—

 
—

Net income (loss)
139.8


(21.9
)

(120.4
)
Less: net income (loss) attributable to non-controlling interests
3.4

 
(5.4
)
 
(73.0
)
Net income (loss) attributable to GoDaddy Inc.
$
136.4

 
$
(16.5
)
 
$
(47.4
)
Denominator:
 
 
 
 
 
Weighted-average shares of Class A common stock outstanding—basic
108,779

 
79,835

 
58,676

Effect of dilutive securities:
 
 
 
 
 
Class B common stock
57,999

 
—

 
—

Options and vesting LLC Units
8,791

 
—

 
—

RSUs and ESPP shares
1,485

 
—

 
—

Weighted-average shares of Class A Common stock outstanding—diluted
177,054


79,835


58,676

 
 
 
 
 
 
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—basic:
 
 
 
 
 
      Continuing operations
$
1.17

 
$
(0.21
)
 
$
(0.81
)
      Discontinued operations
0.08

 
—

 
—

Net income (loss) attributable to GoDaddy Inc.
$
1.25


$
(0.21
)

$
(0.81
)
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—diluted:(1)
 
 
 
 
 
     Continuing operations
$
0.71

 
$
(0.21
)
 
$
(0.81
)
     Discontinued operations
0.08

 
—

 
—

Net income (loss) attributable to GoDaddy Inc.
$
0.79


$
(0.21
)

$
(0.81
)

 
 
(1)
The dilutive income per share calculations exclude the net income (loss) attributable to non-controlling interests.
The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted income (loss) per share because the effect of including such potentially dilutive shares would have been antidilutive:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Class B common stock
—

 
82,068

 
90,366

Options and vesting LLC Units
—

 
13,517

 
15,159

RSUs and ESPP shares
—

 
363

 
139

 
—

 
95,948

 
105,664


Shares of Class B common stock do not share in our earnings and are not participating securities. Accordingly, separate presentation of income (loss) per share of Class B common stock under the two-class method has not been presented. Each share of Class B common stock (together with a corresponding LLC Unit) is exchangeable for one share of Class A common stock. Total shares of common stock outstanding were as follows:
 
December 31,
 
2017
 
2016
Class A common stock
132,993

 
88,558

Class B common stock
35,006

 
78,554

 
167,999

 
167,112

Geographic Information
Geographic Information
Geographic Information
Revenue by geography is based on the customer's billing address, and was as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
U.S.
$
1,504.5

 
$
1,350.1

 
$
1,192.6

International
727.4

 
497.8

 
414.7

 
$
2,231.9

 
$
1,847.9

 
$
1,607.3


No individual international country represented more than 10% of total revenue in any period presented.
Property and equipment, net by geography was as follows:
 
Year Ended December 31,
 
2017
 
2016
U.S.
221.2

 
216.7

France
31.6

 
—

International
45.1

 
14.3

 
$
297.9

 
$
231.0


Other than France, no individual international country represented more than 10% of property and equipment, net in any period presented.
Related Party Transactions
Related Party Transactions
Payable to Related Parties Pursuant to the TRAs
In the Investor Corp Mergers, we received certain tax attributes, including the OBAs and NOL carryforwards, from the Reorganization Parties. These OBAs entitle us to the depreciation and amortization previously allocable to such parties, which are allowed prior to the utilization of any NOL or tax credit carryforwards against income taxes. If these additional depreciation and amortization deductions are greater than our taxable income, the excess deductions allocated to us will increase the amount of our NOL carryforwards.
Based on then current projections of taxable income, and before deduction of any specially allocated depreciation and amortization, we anticipated having enough taxable income to utilize a portion of these specially allocated deductions related to the OBAs. Accordingly, as of December 31, 2015, we recorded a liability under the TRAs of $151.6 million, with an offsetting reduction to additional paid-in capital, representing approximately 85% of the calculated tax savings based on the portion of the OBAs we anticipated being able to utilize in future years.
During 2016, we increased this liability through 1) a $38.5 million reduction of additional paid-in-capital resulting from exchanges of LLC Units in the secondary offering discussed in Note 6 and 2) a $12.5 million charge to our statements of operations, which was primarily due to: (i) an increase in our ownership of Desert Newco, (ii) the finalization of Desert Newco's 2015 taxable income allocated to us and (iii) changes in estimated 2016 taxable income. As of December 31, 2016, the liability under the TRAs was $202.6 million.
During 2017, we decreased this liability through: (i) an $86.2 million benefit to our statements of operations resulting from the U.S. federal corporate tax rate reduction enacted in December 2017 as part of the TCJA, as discussed in Note 14, (ii) a $33.6 million benefit to our statements of operations resulting from the impact of an Internal Revenue Service approved filing election made in the current year, (iii) a $12.2 million increase in additional paid-in capital resulting from an immaterial adjustment related to our accounting for this liability and (iv) a $3.4 million benefit to our statements of operations primarily resulting from our increased ownership of Desert Newco and changes in forecasted taxable income. These decreases were offset by an increase in this liability through an aggregate $85.8 million reduction in additional paid-in capital resulting from exchanges of LLC Units in the secondary offerings discussed in Note 6. As of December 31, 2017, the liability under the TRAs was $153.0 million.
The projection of future taxable income involves significant judgment. Actual taxable income may differ from our estimates, which could significantly impact the liability under the TRAs. We have determined it is more-likely-than-not we will be unable to utilize all of our DTAs subject to TRAs; therefore, we have not recorded a liability under the TRAs related to the tax savings we may realize from the utilization of NOL carryforwards and the amortization related to basis adjustments under Code Section 754 created by exchanges of LLC Units, including those associated with secondary offerings. If utilization of these DTAs becomes more-likely-than-not in the future, at such time, we will record liabilities under the TRAs of up to an additional $559.5 million as a result of basis adjustments under Code Section 754 and up to an additional $224.4 million related to the utilization of NOL and credit carryforwards, which will be recorded through charges to our statements of operations. However, if the tax attributes are not utilized in future years, it is reasonably possible no amounts would be paid under the TRAs. In this scenario, the reduction of the liability under the TRAs would result in a benefit to our statements of operations. These potential additional liabilities were calculated considering the U.S. federal corporate tax rate reduction enacted in December 2017 as part of the TCJA, as discussed in Note 14.
Related Party Transactions
Tax Distributions to Desert Newco's Owners
Desert Newco is subject to an operating agreement containing numerous provisions related to allocations of income and loss, as well as timing and amounts of distributions to its owners. This agreement also includes a provision requiring cash distributions enabling its owners to pay their taxes on income passing through from Desert Newco. In addition, under the tax rules, Desert Newco is required to allocate taxable income disproportionately to its unit holders. Because tax distributions are determined based on the holder of LLC Units who is allocated the largest amount of cumulative taxable income for the current year on a per unit basis, but are made pro rata based on ownership, Desert Newco is required to make tax distributions that, in the aggregate, will likely exceed the amount of taxes Desert Newco would have otherwise paid.
During 2017, Desert Newco paid total distributions of $10.0 million based on ownership as of the various payment dates as follows: $4.0 million to YAM, $2.3 million to SLP, $2.1 million to KKR, $1.2 million to TVC and $0.4 million to other Desert Newco owners. During 2016, Desert Newco paid total distributions of $18.4 million based on ownership as of the various payment dates as follows: $7.3 million to YAM, $4.1 million to SLP, $3.9 million to KKR, $2.2 million to TVC and $0.9 million to other Desert Newco owners. Distributions paid in 2015 were not material.
An accrual for tax distributions was not required at December 31, 2017.
Sponsors
Amounts paid to affiliates of KKR related to their participation as lenders under our Credit Facility were as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Principal
$
0.1

 
$
0.1

 
$
5.3

Interest and other fees
0.3

 
0.8

 
1.4

As of December 31, 2017 and 2016, affiliates of KKR held $15.4 million and $2.9 million, respectively, of the outstanding principal balance of the Term Loan as participating lenders.
On December 16, 2011, we entered into a transaction and monitoring fee agreement with affiliates of certain of the Sponsors pursuant to which those entities provided management and advisory services. In April 2015, we made a final aggregate payment of $26.7 million upon the termination of this agreement following the completion of the IPO, which was charged to general and administrative expense. Following this payment, we have no further obligations under this agreement. In addition, on December 16, 2011, we entered into a separate indemnification agreement with such parties, pursuant to which we agreed to provide customary indemnification to them and their affiliates.
Bob Parsons and YAM
On December 16, 2011, we entered into an executive chairman services agreement with Bob Parsons pursuant to which we were obligated to provide customary benefits related to his service to us. In April 2015, we paid $3.0 million upon the termination of this agreement following the completion of the IPO, which was charged to general and administrative expense. Following this payment, we have no further obligations under this agreement.
Payments made to YAM, other than those associated with the repayment of the senior note in April 2015, as described in Note 10, were as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Interest on the senior note
$
—

 
$
—

 
$
9.2


YAM has indemnified us for certain taxes related to periods prior to December 16, 2011 and we have agreed to provide customary indemnification to Bob Parsons related to his service to us.
Other
In the ordinary course of business, we purchase and lease computer equipment, technology licensing and software maintenance and support from affiliates of Dell Inc. (Dell) of which Silver Lake and its affiliates have a significant ownership interest. During 2017, 2016 and 2015, we paid $15.2 million, $15.4 million and $17.5 million, respectively, to Dell.
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
The following table presents OCI activity accumulated in equity:
 
Foreign Currency Translation Adjustments
 
Net Unrealized Gains (Losses) on Cash Flow Hedges(1)
 
Total Accumulated Other Comprehensive Income (Loss)
Balance as of December 31, 2015
$
(0.2
)
 
$
3.4

 
$
3.2

 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(0.1
)
 
1.4

 
1.3

Amounts reclassified from AOCI
—

 
(1.8
)
 
(1.8
)
Other comprehensive income (loss) - 2016
(0.1
)
 
(0.4
)
 
(0.5
)
Balance as of December 31, 2016
(0.3
)
 
3.0

 
2.7

Other comprehensive income (loss) before reclassifications
(39.6
)
 
(202.7
)
 
(242.3
)
Amounts reclassified from AOCI
(46.9
)
 
154.2

 
107.3

Other comprehensive income (loss) - 2017
(86.5
)
 
(48.5
)
 
(135.0
)
 
$
(86.8
)
 
$
(45.5
)
 
(132.3
)
  Less: AOCI attributable to non-controlling interests
 
 
 
 
(46.6
)
Balance as of December 31, 2017
 
 
 
 
$
(85.7
)
 
 
(1)
Amounts shown for our foreign exchange forward contracts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI.
The sale of PlusServer in August 2017 resulted in the reclassification from AOCI of $46.9 million in cumulative foreign currency translation adjustments, which was reported in the gain on disposal within discontinued operations. The income tax impact associated with this reclassified amount was not material.
See Note 11 for the effect on net income (loss) of amounts reclassified from AOCI related to our cash flow hedging instruments. The income tax impact associated with these reclassified amounts was not material in any period presented.
Selected Quarterly Financial Data (Unaudited)
Selected Quarterly Financial Data (Unaudited)
    Selected Quarterly Financial Data (Unaudited)
The following table contains selected unaudited consolidated statements of operations information for each quarter of 2017 and 2016. The following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period.
 
Three Months Ended
 
Dec. 31, 2017
 
Sept. 30, 2017
 
Jun. 30, 2017
 
Mar. 31, 2017
 
Dec. 31, 2016
 
Sept. 30, 2016
 
Jun. 30, 2016
 
Mar. 31, 2016
Total revenue
$
602.2

 
$
582.2

 
$
557.8

 
$
489.7

 
$
485.9

 
$
472.1

 
$
456.2

 
$
433.7

Operating income
23.0

 
32.1

 
6.1

 
5.7

 
17.9

 
21.2

 
9.7

 
1.3

Income (loss) from continuing operations
98.3

 
7.1

 
23.4

 
(3.1
)
 
(0.8
)
 
8.3

 
(11.1
)
 
(18.3
)
Net income (loss)
94.8

 
30.0

 
18.1

 
(3.1
)
 
(0.8
)
 
8.3

 
(11.1
)
 
(18.3
)
Net income (loss) attributable to GoDaddy Inc.
92.6

 
22.4

 
20.8

 
0.6

 
(1.9
)
 
4.8

 
(8.9
)
 
(10.5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—basic:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$
0.74

 
$
0.05

 
$
0.25

 
$
0.01

 
$
(0.02
)
 
$
0.06

 
$
(0.11
)
 
$
(0.15
)
Discontinued operations
(0.02
)
 
0.15

 
(0.05
)
 
—

 
—

 
—

 
—

 
—

Net income (loss) attributable to GoDaddy, Inc.
$
0.72


$
0.20


$
0.20


$
0.01


$
(0.02
)

$
0.06


$
(0.11
)

$
(0.15
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—diluted:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$
0.56

 
$
0.04

 
$
0.13

 
$
0.01

 
$
(0.02
)
 
$
0.05

 
$
(0.11
)
 
$
(0.15
)
Discontinued operations
(0.02
)
 
0.13

 
(0.03
)
 
—

 
—

 
—

 
—

 
—

Net income (loss) attributable to GoDaddy, Inc.
$
0.54

 
$
0.17

 
$
0.10

 
$
0.01

 
$
(0.02
)
 
$
0.05

 
$
(0.11
)
 
$
(0.15
)
Subsequent Events
Subsequent Events
Subsequent Events
In January 2018, we entered into a definitive agreement to acquire Main Street Hub, a provider of social media engagement optimization services, for approximately $125.0 million in cash and additional contingent earn-out payments of up to $50.0 million. This transaction is expected to close in the second quarter of 2018, subject to customary regulatory and other closing requirements.
Summary of Significant Accounting Policies (Policies)
Basis of Presentation 
Basis of Presentation
Our consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP), and include our accounts and the accounts of our subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation
Prior Period Reclassifications 
Prior Period Reclassifications
Reclassifications of certain immaterial prior period amounts have been made to conform to the current period presentation.
Use of Estimates 
Use of Estimates
GAAP requires us to make estimates and assumptions affecting amounts reported in our financial statements. Our more significant estimates include:
•
the determination of the best estimate of selling price of the deliverables included in multiple-deliverable revenue arrangements;
•
the fair value of assets acquired and liabilities assumed in business acquisitions;
•
the assessment of recoverability of long-lived assets, including property and equipment, goodwill and intangible assets;
•
the estimated reserve for refunds;
•
the estimated useful lives of intangible and depreciable assets;
•
the grant date fair value of equity-based awards;
•
the fair value of financial instruments;
•
the recognition, measurement and valuation of current and deferred income taxes;
•
the recognition and measurement of amounts payable under tax receivable agreements (TRAs) or as tax distributions to Desert Newco's owners; and
•
the recognition and measurement of loss contingencies, indirect tax liabilities and certain accrued liabilities.
We periodically evaluate these estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual results may differ from our estimates.
Segments and Reporting Units 
Segment and Reporting Unit
As of December 31, 2017, our chief operating decision maker function was comprised of our Chief Executive Officer and Chief Operating Officer who collectively review financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance for the entire company. Accordingly, we have a single operating segment and reporting unit.
Cash and Cash Equivalents 
Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, other highly liquid investments purchased with a remaining maturity of 90 days or less at the date of acquisition and receivables related to third-party payment processor transactions normally received within 72 hours.
Short-Term Investments 
Short-Term Investments
Our short-term investments consist of certificates of deposit, time deposits and commercial paper with a remaining maturity in excess of 90 days at the date of acquisition, which are carried at fair value. The estimated fair value of our short-term investments is determined based on quoted market prices and approximated historical cost. We did not have any material realized or unrealized gains or losses on sales of short-term investments during any of the periods presented.
We classify our short-term investments as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell our short-term investments at any time for use in current operations or for other purposes, such as consideration for acquisitions, even if they have not yet reached maturity. As a result, we classify our short-term investments, including investments with maturities beyond 12 months, as current assets.
Prepaid Domain Name Registry Fees 
Prepaid Domain Name Registry Fees
Prepaid domain name registry fees represent amounts charged by a registry at the time a domain is registered or renewed. These amounts are amortized to cost of revenue over the same period revenue is recognized for the related domain registration contracts.
Property and Equipment 
Property and Equipment
Property and equipment is stated at cost. Depreciation, including for assets acquired under capital leases, is recorded over the shorter of the estimated useful life or the lease term of the applicable assets using the straight-line method beginning on the date an asset is placed in service. We regularly evaluate the estimated remaining useful lives of our property and equipment to determine whether events or changes in circumstances warrant a revision to the remaining period of depreciation. Maintenance and repairs are charged to expense as incurred.
Capitalized Internal-Use Software Costs 
Capitalized Internal-Use Software Costs
Costs incurred to develop software for internal-use during the application development phase and for our websites are capitalized and amortized over such software's estimated useful life. Costs related to the design or maintenance of internal-use software are included in technology and development expenses as incurred. Costs capitalized during all periods presented have not been material.
Goodwill 
Goodwill and Indefinite-Lived Intangible Assets
Goodwill represents the excess of the purchase price over the estimated fair value of net tangible and identifiable intangible assets acquired in business combinations. Indefinite-lived intangible assets consist of the GoDaddy trade names and branding acquired from YAM and our acquired domain portfolio. Goodwill and indefinite-lived intangible assets are not amortized to earnings, but are assessed for impairment at least annually. As individual domains are sold, our indefinite-lived domain portfolio intangible asset is reduced by the allocated carrying cost of each domain, which is included in cost of revenue.
We assess impairment annually for our single reporting unit and our indefinite-lived trade names and branding during the fourth quarter of each year. We also perform an assessment at other times if events or changes in circumstances indicate the carrying value of the assets may not be recoverable. If, based on qualitative analysis, we determine it is more-likely-than-not the fair value of our reporting unit is less than its carrying amount, a quantitative impairment test is performed. Our qualitative analysis did not indicate impairment during any of the periods presented.
Indefinite-Lived Intangible Assets 
Our indefinite-lived domain portfolio is reviewed for impairment annually during the fourth quarter of each year. We also perform an assessment at other times if events or changes in circumstances indicate the carrying amount of the asset may not be fully recoverable. Any identified impairment loss is treated as a permanent reduction in the carrying amount of the asset. We did not record an impairment loss during any of the periods presented.
Finite-Lived Intangible Assets 
Long-Lived and Finite-Lived Intangible Assets
Finite-lived intangible assets are amortized over the following estimated useful lives:
Customer relationships
3-9 years
Developed technology
5-7 years
Trade names
3-10 years

Customer relationships are primarily amortized based on expected customer attrition. Developed technology and finite-lived trade names are amortized on a straight-line basis. We regularly evaluate the estimated remaining useful lives of our intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization.
Impairment of Long-Lived and Finite-Lived Intangible Assets 
Long-lived and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be fully recoverable. An impairment loss is recognized if the sum of the expected long-term undiscounted cash flows the asset is expected to generate is less than its carrying amount. Any write-downs are treated as permanent reductions in the carrying amount of the respective asset.
Debt Issuance Costs 
Debt Issuance Costs
We defer and amortize issuance costs, underwriting fees and related expenses incurred in connection with the issuance of debt instruments using the effective interest method over the terms of the respective instruments. Debt issuance costs, other than those associated with our revolving credit loan, are reflected as a direct reduction of the carrying amount of the related debt liability. Debt issuance costs related to our revolving credit loan are reflected as an asset.
Derivative Financial Instruments 
Derivative Financial Instruments
We are exposed to changes in foreign currency exchange rates as well as changes in interest rates associated with our variable-rate debt. Consequently, we use derivative financial instruments to manage and mitigate such risks. We do not enter into derivative transactions for speculative or trading purposes.
Our derivative financial instruments include foreign exchange forward contracts with financial institutions to hedge certain forecasted sales transactions denominated in currencies other than the United States (U.S.) dollar. In addition, we have entered into an interest rate swap on a portion of our long-term debt and a cross-currency swap on our intercompany debt to manage the variability of cash flows due to movements in interest rates and foreign currency exchange rates. We have designated each of these instruments as a cash flow hedge.
We expect each derivative instrument qualifying for hedge accounting will be highly effective at reducing the risk associated with the exposure being hedged. For each derivative instrument designated as a hedge, we formally document the related risk management strategy and objective, including identification of the hedging instrument, the hedged item and the risk of exposure, as well as how hedge effectiveness will be assessed prospectively and retrospectively over the instrument's term. To assess effectiveness of our swap instruments, we use regression analysis performed utilizing the Hypothetical Derivative Method to compare the change in fair value of the derivative instrument designated as the hedging instrument to the change in the fair value of a similarly modeled hypothetical derivative using the same discount rate. Following our initial quantitative assessment, we may perform subsequent assessments on a qualitative basis unless facts and circumstances change such that we can no longer qualitatively assert that our hedges are highly effective.
We reflect unrealized gains or losses on our cash flow hedges as a component of accumulated other comprehensive income (loss) (AOCI). Gains and losses, once realized, are recorded as a component of AOCI and are amortized to earnings over the same period in which the underlying hedged amounts are recognized. At inception, and each reporting period, we evaluate the effectiveness of each of our hedges, and all hedges were determined to be effective.
Our derivative instruments are recorded at fair value on a gross basis. For cash flow reporting purposes, proceeds received or amounts paid upon the settlement of a derivative instrument are classified in the same manner as the related item being hedged, primarily within cash flows from operating activities.
Leases 
Leases
We lease office and data center space in various locations. Rent expense under operating leases is recognized on a straight-line basis over the lease term taking into consideration rent abatements, scheduled rent increases and any lease incentives.
We record assets and liabilities for estimated construction costs incurred under build-to-suit lease arrangements to the extent we are involved in the construction of structural improvements or take construction risk prior to commencement of a lease. Upon completion of the construction project, we evaluate our level of continuing involvement in the facility. If we maintain significant continuing involvement, we continue to account for the facility as a financing obligation. Otherwise, we record a sale of the facility back to the landlord, and accordingly, the related construction assets and liabilities are removed from our consolidated financial statements.
Foreign Currency 
Foreign Currency
Our functional and reporting currency is the U.S. dollar. Assets denominated in foreign currencies are remeasured into U.S. dollars at period-end exchange rates. Foreign currency-based revenue and expense transactions are measured at transaction date exchange rates. Foreign currency remeasurement gains and losses are recorded in other income (expense), net and were $(1.5) million, $(4.6) million and $(3.5) million during 2017, 2016 and 2015, respectively.
For certain of our foreign subsidiaries whose functional currency is other than the U.S. dollar, we translate revenue and expense transactions at average exchange rates. We translate assets and liabilities at period-end exchange rates and include foreign currency translation gains and losses as a component of AOCI.
Revenue Recognition 
Revenue Recognition
Revenue is recorded when persuasive evidence of an arrangement exists, delivery of the product has occurred, the selling price is fixed or determinable and collectability is reasonably assured. Payments received in advance of revenue recognition are recorded as deferred revenue. Revenue is recognized net of applicable transaction-based taxes collected from customers.
We maintain a reserve to provide for refunds granted to customers. Our reserve is an estimate based on historical refund experience. Refunds reduce deferred revenue at the time they are granted and result in a reduced amount of revenue recognized over the contract term of the applicable product compared to the amount originally expected.
Consideration provided to customers for sales incentives or service disruption credits is recorded as a reduction of revenue at the later of the time the related revenue is recognized or when such consideration is offered. Such incentives and credits were not material in any of the periods presented.
Revenue arrangements with multiple deliverables are divided into separate units of accounting if each deliverable has stand-alone value to the customer. The majority of our revenue arrangements consists of multiple-element arrangements, with revenue for each unit of accounting recognized as the product or service is delivered to the customer. Our multiple-element arrangements may include a combination of some or all of the following: domain registrations, website hosting products, website building products and services, website security products and other cloud-based products. Each of these products has stand-alone value and is sold separately.
Consideration is allocated to each deliverable at the inception of an arrangement based on relative selling prices. We determine the relative selling price for each deliverable based on our vendor-specific objective evidence of selling price (VSOE) or our best estimate of selling price (BESP), if VSOE is not available. We have determined third-party evidence of selling price (TPE) is not a practical alternative due primarily to the significant variability among available third-party pricing information for similar products and differences in the features of our product and service offerings compared to other parties.
We establish VSOE for certain of our products when a consistent number of stand-alone sales of these products have been priced within a reasonably narrow range. We are unable to establish VSOE when we lack pricing consistency, primarily related to our marketing strategies and variability in pricing due to promotional activity. 
For products where VSOE is not available, we determine BESP by considering our overall pricing objectives and market conditions. Significant factors taken into consideration include historical and expected discounting practices, the size, volume and term length of transactions, customer demographics, the geographic areas in which our products and services are sold and our overall go-to-market strategy.
We sell our products and services directly to customers and also through a network of resellers. In certain cases, we act as a reseller of products provided by others. The determination of gross or net revenue recognition is reviewed on a product by product basis and is dependent on whether we act as principal or agent in the transaction. Revenue associated with sales through our network of resellers and for certain aftermarket domain sales is recorded on a gross basis as we have determined we are the primary obligor in the contractual arrangements with end customers. Commissions paid are expensed as a cost of revenue over the same period in which the associated revenue is recognized.
Our revenue is categorized as follows:
Domains. Domains revenue primarily consists of domain registrations and renewals, domain privacy, domain application fees, domain back-orders, aftermarket domain sales and fee surcharges paid to ICANN. Domain registrations provide a customer with the exclusive use of a domain during the applicable contract term. After the contract term expires, unless renewed, the customer can no longer access the domain. Consideration is recorded as deferred revenue at the time of sale, and revenue, other than for aftermarket domain sales, is recognized as the product or service is delivered to the customer. Aftermarket domain revenue is recognized when control of the domain is transferred to the buyer.
Hosting and presence. Hosting and presence revenue primarily consists of website hosting products, website building products and services, website security products, an online shopping cart and online visibility products. Consideration is recorded as deferred revenue at the time of sale, and revenue is recognized as the product or service is delivered to the customer.
Business applications. Business applications revenue primarily consists of third-party productivity applications, email accounts and email marketing tools. Consideration is recorded as deferred revenue at the time of sale, and revenue is recognized as the product or service is delivered to the customer.
Cost of Revenue (excluding depreciation and amortization) 
Cost of Revenue (excluding depreciation and amortization)
Costs of revenue are the direct costs we incur in connection with selling an incremental product to our customers. Substantially all cost of revenue relates to domain registration fees paid to the various domain registries, payment processing fees, third-party commissions and licensing fees for third-party productivity applications.
Technology and Development 
Technology and Development
Technology and development expenses represent the costs associated with the creation, development and distribution of our products and websites. These expenses primarily consist of personnel costs associated with the design, development, deployment, testing, operation and enhancement of our products, as well as costs associated with the data centers and systems infrastructure supporting those products, excluding depreciation expense.
Marketing and Advertising, Customer Care and General and Administrative 
Marketing and Advertising
Marketing and advertising expenses represent the costs associated with attracting and acquiring customers, primarily consisting of fees paid to third parties for marketing and advertising campaigns across television and radio, search engines, online display, social media and event sponsorships. These expenses also include personnel costs and affiliate program commissions.
Advertising costs are expensed either as incurred, at the time a commercial initially airs or when a promotion first appears in the media. Advertising expenses were $205.8 million, $194.0 million and $177.6 million during 2017, 2016 and 2015, respectively. Prepaid advertising, which is included within prepaid expenses and other current assets, was $9.6 million and $1.3 million at December 31, 2017 and 2016, respectively. At December 31, 2017, we had contractual commitments for certain marketing agreements with future payments totaling $1.1 million due in 2018 and $0.2 million due in 2019.
Customer Care
Customer care expenses represent the costs to advise and service our customers, primarily consisting of personnel costs.
General and Administrative
General and administrative expenses primarily consist of personnel costs for our administrative functions, professional service fees, office rent for all locations, all employee travel expenses, acquisition-related expenses and other general costs.
Equity-Based Compensation 
Equity-Based Compensation
Equity-based awards are accounted for using the fair value method. Restricted stock units (RSUs) are measured based on the fair market value of the underlying common stock on the date of grant. Grant date fair values for stock options are determined using the Black-Scholes option pricing model and a single option award approach. The measurement date for performance vesting awards is the date on which the applicable performance criteria are approved by our board of directors. The fair value of shares issued under our employee stock purchase plan is estimated on the first day of each offering period using the Black-Scholes option pricing model. An estimate of future award forfeitures, which is based on historical data, is utilized in our equity-based compensation calculations. We regularly estimate when and if performance-based awards will be earned and record equity-based compensation expense only for awards considered probable of being earned.
Key assumptions used in the determination of fair value for stock options are as follows:
Expected term. The expected term represents the period the options are expected to be outstanding. Because of the lack of sufficient historical data necessary to calculate the expected term, we use the simple average of the vesting period and the contractual term to estimate the expected term.
Expected volatility. We determine the expected stock price volatility based on the historical volatilities of our peer group since there is not a sufficient trading history for our Class A common stock. Industry peers consist of several public companies in the technology industry similar to us in size, stage of life cycle and financial leverage. We intend to continue to consistently apply this process using the same or similar public companies until a sufficient trading history of our Class A common stock becomes available. If circumstances change such that the identified companies are no longer similar to us, we will revise our peer group to substitute more suitable companies in this calculation.
Expected dividend yield. We do not use a dividend rate due to our expectation of not paying dividends in the foreseeable future.
Risk-free interest rate. We base the risk-free interest rate on the yield curve of a zero-coupon U.S. Treasury bond with a maturity equal to the expected term of the option on the grant date.
Income Taxes 
Income Taxes
We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets (DTAs) and liabilities (DTLs) for the expected future tax consequences of events included in the financial statements. Under this method, we determine DTAs and DTLs on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on DTAs and DTLs is recognized in the period in which the enactment date occurs.
We recognize DTAs to the extent we believe these assets are more-likely-than-not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent results of operations.
We record uncertain tax positions on the basis of a two-step process in which (1) we determine whether it is more-likely-than-not the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions meeting the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority.
Interest and penalties related to income taxes are included in benefit (provision) for income taxes, and were not material during any of the periods presented.
Fair Value Measurements 
Fair Value Measurements
Fair value is defined as an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. The framework for measuring fair value provides a three-tier hierarchy prioritizing inputs to valuation techniques used in measuring fair value as follows:
Level 1— Observable inputs such as quoted prices for identical assets or liabilities in active markets;
Level 2— Inputs, other than quoted prices for identical assets or liabilities in active markets, which are observable either directly or indirectly; and
Level 3— Unobservable inputs in which there is little or no market data requiring the reporting entity to develop its own assumptions.
We hold certain assets required to be measured at fair value on a recurring basis. These may include reverse repurchase agreements, commercial paper or other securities, which are classified as either cash and cash equivalents or short-term investments. We classify these assets within Level 1 or Level 2 because we use either quoted market prices or alternative pricing sources utilizing market observable inputs to determine their fair value. In addition, Level 2 assets and liabilities include derivative financial instruments associated with hedging activity, as further discussed in Note 11. Derivative financial instruments are measured at fair value on the contract date and are subsequently remeasured each reporting period using inputs such as spot rates, discount rates and forward rates. There are not active markets for the hedge contracts themselves; however, the inputs used to calculate the fair value of the instruments are tied to active markets.
Our contingent consideration liabilities are classified within Level 3 and valued using discounted cash flow valuation methods encompassing significant unobservable inputs. The inputs include estimated operating results scenarios for the applicable performance periods, probability weightings assigned to operating results scenarios and the discount rates applied. Our contingent consideration liabilities relate to future earn-out payments associated with our acquisitions. No material adjustments to the fair value of contingent consideration were made during any of the periods presented.
Business Combinations 
Business Combinations
We include the results of operations of acquired businesses as of the respective acquisition dates. Purchase price is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values, with the excess recorded as goodwill. If applicable, we estimate the fair value of contingent consideration payments in determining the purchase price. Measurement period adjustments to provisional purchase price allocations are recognized in the period in which they are determined, with the effect on earnings of changes in depreciation, amortization or other income resulting from such changes calculated as if the accounting had been completed at the acquisition date. Contingent consideration is adjusted to fair value in subsequent periods as an increase or decrease in general and administrative expenses. Acquisition-related costs are expensed as incurred.
Recent Accounting Pronouncements 
Recent Accounting Pronouncements
Revenue Recognition
In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard on revenue recognition from contracts with customers. The new standard requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled to in exchange for those goods or services. The FASB has issued several amendments to the new standard, including clarification on identifying performance obligations, principal-versus-agent implementation guidance, collectability assessment, sales taxes and other similar taxes collected from customers, noncash consideration, contract modification and completed contracts at transition. These amendments are intended to address implementation issues raised by stakeholders and provide additional practical expedients to reduce the cost and complexity of applying the new standard.
We will adopt the new standard effective January 1, 2018 using the modified retrospective transition method. We finalized our assessment of the new standard and the adoption of this guidance will not have a material impact on our consolidated financial statements or our internal controls over financial reporting.
Other Accounting Standards
In February 2016, the FASB issued new guidance related to accounting for leases. The new standard requires the recognition of assets and liabilities arising from lease transactions on the balance sheet and the disclosure of key information about leasing arrangements. For leases with a term of 12 months or less, a lessee can make an accounting policy election by class of underlying asset to not recognize an asset and corresponding liability. We will adopt the new standard on January 1, 2019. In transition, lessees are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. While we continue to evaluate the effect of adopting this guidance, we expect our operating leases disclosed in Note 12 will be subject to the new guidance. We will recognize right-of-use assets and lease liabilities in our consolidated balance sheets upon adoption, which will increase our total assets and liabilities.
In June 2016, the FASB issued new guidance for the accounting for credit losses on instruments that will require entities to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial instruments measured at amortized cost and also applies to some off-balance sheet credit exposures. The guidance is effective for annual and interim reporting periods beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the timing of our adoption and the expected impact of this new guidance.
In November 2016, the FASB issued new guidance requiring amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the amounts shown on the statement of cash flows. Our adoption of this guidance on January 1, 2018 is not expected to have a material impact.
In January 2017, the FASB issued new guidance clarifying the definition of a business for determining whether transactions should be accounted for as acquisitions or disposals of assets or businesses. If substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single asset or a group of similar assets, the assets acquired (or disposed of) are not considered to be a business. Our early adoption of this guidance effective October 1, 2017 did not have a material impact.
In January 2017, the FASB issued new guidance simplifying the goodwill impairment test, eliminating the requirement for an entity to determine the fair value of its assets and liabilities (including unrecognized assets and liabilities) at the impairment testing date following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, an entity will be required to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity will be required to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The guidance is effective for annual and interim reporting periods beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the timing of our adoption and the expected impact of this new guidance.
In May 2017, the FASB issued new guidance to amend the scope of modification accounting for share-based payment arrangements. The amendment provides guidance on the types of changes to the terms or conditions of share-based payment awards which would require an entity to apply modification accounting. Our adoption of this guidance on January 1, 2018 is not expected to have a material impact.
On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into law. See Note 14 for further discussion.
Business Acquisitions (Tables)
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed 
The following table summarizes the preliminary estimated fair values of the HEG assets acquired and liabilities assumed, as adjusted for certain measurement period adjustments primarily related to refinements in the fair values of acquired DTLs and the net assets held for sale:
Total purchase consideration(1)
 
$
1,849.5

 
 
 
Fair value of assets acquired:
 
 
 Cash and cash equivalents
 
27.2

 Other current assets
 
66.3

 Assets held for sale(2)
 
497.5

 Property and equipment, net
 
61.9

 Intangible assets, net
 
595.7

 Other assets
 
9.3

Amount attributable to assets acquired
 
1,257.9

Fair value of liabilities assumed:
 
 
 Accounts payable and accrued expenses
 
62.8

 Current portion of deferred revenue
 
45.5

 Liabilities directly associated with the assets held for sale(2)
 
93.0

 Other long-term liabilities
 
14.0

 Deferred tax liabilities
 
177.6

Amount attributable to liabilities assumed
 
392.9

Goodwill
 
$
984.5

 
 
(1)
The purchase consideration was translated using the Euro to U.S. dollar exchange rate in effect on the closing date, April 3, 2017, of approximately 1.066.
(2)
Assets held for sale and liabilities directly associated with the assets held for sale, represented those of HEG's PlusServer managed hosting business (PlusServer), which met the criteria for held for sale designation at the acquisition date and was sold in August 2017. See Note 4 for further discussion.
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination 
The purchase price allocation to identifiable finite-lived intangible assets acquired was as follows:
Finite-lived Intangible Assets
 
Estimated
Useful Lives
 
 
Trade names
 
10 years
 
$
75.2

Developed technology
 
6 years
 
62.4

Customer relationships
 
9 years
 
458.1

 
 
 
 
$
595.7

Business Acquisition, Pro Forma Information 
 
Year Ended   December 31,
Pro forma Consolidated Results of Operations (unaudited)
2017
 
2016
 
 
 
 
Total revenue
$
2,315.1

 
$
2,058.4

Net income (loss) attributable to GoDaddy Inc.
143.9

 
(40.0
)
Net income (loss) from continuing operations attributable to GoDaddy Inc.
128.8

 
(46.1
)
Net income (loss) from continuing operations attributable to GoDaddy Inc. per share of Class A common stock - basic
1.23

 
(0.53
)
Net income (loss) from continuing operations attributable to GoDaddy Inc. per share of Class A common stock - diluted
0.75

 
(0.53
)
Summary of Significant Accounting Policies (Tables)
Property, Plant and Equipment 
Property and equipment consisted of the following:
 
 
Estimated
Useful Lives
 
December 31,
 
 
2017
 
2016
Computer equipment
 
3 years
 
$
355.0

 
$
283.3

Software
 
3 years
 
33.9

 
27.3

Land
 
Indefinite
 
9.0

 
9.0

Buildings, including improvements
 
5-40 years
 
147.4

 
123.1

Building acquired under lease financing obligation
 
40 years
 
18.1

 
18.1

Leasehold improvements
 
Lesser of useful life or remaining lease term
 
60.6

 
36.1

Other
 
1-20 years
 
22.0

 
12.1

Total property and equipment
 
 
 
646.0

 
509.0

Less: accumulated depreciation and amortization
 
 
 
(348.1
)
 
(278.0
)
Property and equipment, net
 
 
 
$
297.9

 
$
231.0

Schedule of Finite-Lived Intangible Assets 
Finite-lived intangible assets are amortized over the following estimated useful lives:
Customer relationships
3-9 years
Developed technology
5-7 years
Trade names
3-10 years
Intangible assets, net are summarized as follows:
 
December 31, 2017
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Domains Sold
 
Net Carrying
Amount
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
Trade names and branding
$
445.0

 
n/a

 
 n/a

 
$
445.0

Domain portfolio
171.0

 
n/a

 
$
(18.8
)
 
152.2

Finite-lived intangible assets:
 
 
 
 
 
 
 
Customer-related
868.0

 
$
(320.4
)
 
 n/a

 
547.6

Developed technology
184.5

 
(82.2
)
 
 n/a

 
102.3

Trade names
94.4

 
(15.5
)
 
 n/a

 
78.9

 
$
1,762.9

 
$
(418.1
)
 
$
(18.8
)
 
$
1,326.0

 
December 31, 2016
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Domains Sold
 
Net Carrying
Amount
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
Trade names and branding
$
445.0

 
n/a

 
 n/a

 
$
445.0

Domain portfolio
120.5

 
n/a

 
$
(14.4
)
 
106.1

Finite-lived intangible assets:
 
 
 
 
 
 
 
Customer-related
367.4

 
$
(245.4
)
 
 n/a

 
122.0

Developed technology
226.0

 
(187.0
)
 
 n/a

 
39.0

Trade names
11.9

 
(7.5
)
 
 n/a

 
4.4

 
$
1,170.8

 
$
(439.9
)
 
$
(14.4
)
 
$
716.5

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions 
The fair value of options granted was estimated using the following weighted-average assumptions:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Expected term (in years)
6.1

 
6.1

 
6.3

Expected volatility
37.4
%
 
37.7
%
 
39.1
%
Risk-free interest rate
2.0
%
 
1.4
%
 
1.7
%
Fair Value, Assets Measured on Recurring Basis 
The following tables set forth assets and liabilities measured at fair value on a recurring basis:
 
December 31, 2017
Assets:
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents:
 
 
 
 
 
 
 
Reverse repurchase agreements(1)
$
—

 
$
130.0

 
$
—

 
$
130.0

Commercial paper
—

 
50.0

 
—

 
50.0

Short-term investments:
 
 
 
 
 
 
 
Certificates of deposit and time deposits
0.4

 
—

 
—

 
0.4

Commercial Paper
—

 
11.9

 
—

 
11.9

Derivative assets
—

 
—

 
—

 
—

Total assets measured and recorded at fair value
$
0.4

 
$
191.9

 
$
—

 
$
192.3

Liabilities:
 
 
 
 
 
 
 
Contingent consideration liabilities
$
—

 
$
—

 
$
20.7

 
$
20.7

Derivative liabilities
—

 
206.4

 
—

 
206.4

Total liabilities measured and recorded at fair value
$
—

 
$
206.4

 
$
20.7

 
$
227.1

 
 
(1)
Reverse repurchase agreements include a $70.0 million repurchase agreement with Morgan Stanley, callable with 31 days notice, and a $60.0 million one-week repurchase agreement with Wells Fargo.
 
December 31, 2016
Assets:
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents:
 
 
 
 
 
 
 
Reverse repurchase agreements(1)
$
—

 
$
130.0

 
$
—

 
$
130.0

Commercial paper
—

 
55.9

 
—

 
55.9

Short-term investments:
 
 
 
 
 
 
 
Certificates of deposit and time deposits
6.6

 
—

 
—

 
6.6

Derivative assets
—

 
0.7

 
—

 
0.7

Total assets measured and recorded at fair value
$
6.6

 
$
186.6

 
$
—

 
$
193.2

Liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$
—

 
$
0.1

 
$
—

 
$
0.1

Total liabilities measured and recorded at fair value
$
—

 
$
0.1

 
$
—

 
$
0.1

 
 
(1)
Reverse repurchase agreements include an $80.0 million repurchase agreement with Morgan Stanley, callable with 31 days notice, and a $50.0 million one-week repurchase agreement with Wells Fargo.
Goodwill and Intangible Assets (Tables)
Schedule of Goodwill 
The following table summarizes changes in our goodwill balance:
Balance at December 31, 2015
$
1,663.4

Goodwill related to 2016 acquisitions
55.0

Balance at December 31, 2016
1,718.4

Goodwill related to 2017 acquisitions
1,048.4

Impact of foreign currency translation
93.1

Balance at December 31, 2017
$
2,859.9

Schedule of Finite-Lived Intangible Assets 
Finite-lived intangible assets are amortized over the following estimated useful lives:
Customer relationships
3-9 years
Developed technology
5-7 years
Trade names
3-10 years
Intangible assets, net are summarized as follows:
 
December 31, 2017
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Domains Sold
 
Net Carrying
Amount
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
Trade names and branding
$
445.0

 
n/a

 
 n/a

 
$
445.0

Domain portfolio
171.0

 
n/a

 
$
(18.8
)
 
152.2

Finite-lived intangible assets:
 
 
 
 
 
 
 
Customer-related
868.0

 
$
(320.4
)
 
 n/a

 
547.6

Developed technology
184.5

 
(82.2
)
 
 n/a

 
102.3

Trade names
94.4

 
(15.5
)
 
 n/a

 
78.9

 
$
1,762.9

 
$
(418.1
)
 
$
(18.8
)
 
$
1,326.0

 
December 31, 2016
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Domains Sold
 
Net Carrying
Amount
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
Trade names and branding
$
445.0

 
n/a

 
 n/a

 
$
445.0

Domain portfolio
120.5

 
n/a

 
$
(14.4
)
 
106.1

Finite-lived intangible assets:
 
 
 
 
 
 
 
Customer-related
367.4

 
$
(245.4
)
 
 n/a

 
122.0

Developed technology
226.0

 
(187.0
)
 
 n/a

 
39.0

Trade names
11.9

 
(7.5
)
 
 n/a

 
4.4

 
$
1,170.8

 
$
(439.9
)
 
$
(14.4
)
 
$
716.5

Schedule of Indefinite-Lived Intangible Assets 
Intangible assets, net are summarized as follows:
 
December 31, 2017
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Domains Sold
 
Net Carrying
Amount
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
Trade names and branding
$
445.0

 
n/a

 
 n/a

 
$
445.0

Domain portfolio
171.0

 
n/a

 
$
(18.8
)
 
152.2

Finite-lived intangible assets:
 
 
 
 
 
 
 
Customer-related
868.0

 
$
(320.4
)
 
 n/a

 
547.6

Developed technology
184.5

 
(82.2
)
 
 n/a

 
102.3

Trade names
94.4

 
(15.5
)
 
 n/a

 
78.9

 
$
1,762.9

 
$
(418.1
)
 
$
(18.8
)
 
$
1,326.0

 
December 31, 2016
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Domains Sold
 
Net Carrying
Amount
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
Trade names and branding
$
445.0

 
n/a

 
 n/a

 
$
445.0

Domain portfolio
120.5

 
n/a

 
$
(14.4
)
 
106.1

Finite-lived intangible assets:
 
 
 
 
 
 
 
Customer-related
367.4

 
$
(245.4
)
 
 n/a

 
122.0

Developed technology
226.0

 
(187.0
)
 
 n/a

 
39.0

Trade names
11.9

 
(7.5
)
 
 n/a

 
4.4

 
$
1,170.8

 
$
(439.9
)
 
$
(14.4
)
 
$
716.5

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense 
Based on the balance of finite-lived intangible assets at December 31, 2017, expected future amortization expense is as follows:
Year Ending December 31:
 
2018
$
130.3

2019
111.1

2020
104.5

2021
81.8

2022
80.2

Thereafter
220.9

 
$
728.8

Stockholders' Equity (Tables)
Schedule of Secondary Offerings and LLC Unit Repurchase
Significant details for each offering are as follows:
Offering Date
 
Offering Price Per Share ($)
 
Shares Sold by GoDaddy (#)
 
Proceeds Received by GoDaddy ($)
 
Aggregate Shares Sold by Selling Stockholders (#)
 
LLC Units Exchanged by Selling Stockholders (#)
 
Increase in Additional Paid-in Capital ($)
December 2017(1)
 
47.32

 
50

 
2.4

 
7,228

 
4,689

 
4.7

September 2017
 
44.00

 
50

 
2.2

 
20,000

 
13,774

 
10.8

May 2017
 
38.50

 
100

 
3.7

 
27,615

 
16,701

 
10.8

April 2016
 
30.25

 
—

 
—

 
18,975

 
10,382

 
8.8

 
 
(1)
Following the December 2017 secondary offering, TCV no longer owns shares of GoDaddy's common stock.
Equity-Based Compensation Plans (Tables)
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award 
The following table summarizes our option activity:
 
 
Number of
Shares of Class A Common Stock (#)
 
Weighted-
Average
Grant-
Date Fair
Value ($)
 
Weighted-
Average
Exercise
Price ($)
 
Weighted-
Average
Remaining
Contractual
Life
(in years)
 
Aggregate
Intrinsic
Value ($)
Outstanding at December 31, 2014
 
26,652

 
 
 
8.27

 
 
 
 
Granted
 
3,926

 
9.77

 
23.66

 
 
 
 
Exercised
 
(1,749
)
 
 
 
7.65

 
 
 
35.5

Forfeited
 
(1,410
)
 
 
 
13.47

 
 
 
 
Outstanding at December 31, 2015
 
27,419

 
 
 
10.25

 
 
 
 
Granted
 
2,136

 
11.97

 
30.93

 
 
 
 
Exercised
 
(9,187
)
 
 
 
5.99

 
 
 
242.4

Forfeited
 
(1,740
)
 
 
 
17.25

 
 
 
 
Outstanding at December 31, 2016
 
18,628

 
 
 
14.06

 
 
 
 
Granted
 
2,077

 
15.07

 
38.03

 
 
 
 
Exercised
 
(6,000
)
 
 
 
10.18

 
 
 
187.1

Forfeited
 
(1,245
)
 
 
 
23.46

 
 
 
 
Outstanding at December 31, 2017
 
13,460

 
 
 
18.63

 
6.6
 
426.0

Vested at December 31, 2017
 
6,737

 
 
 
12.72

 
5.6
 
253.1

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award 
The following table summarizes our RSU activity:
 
 
Number of
Shares of Class A Common Stock (#)
 
Weighted-
Average
Grant-
Date Fair
Value ($)
Outstanding at December 31, 2014
 
87

 
 
Granted
 
52

 
31.50

Vested
 
(46
)
 
 
Forfeited
 
—

 
 
Outstanding at December 31, 2015
 
93

 
 
Granted
 
3,129

 
30.98

Vested
 
(241
)
 
 
Forfeited
 
(224
)
 
 
Outstanding at December 31, 2016
 
2,757

 
 
Granted
 
2,877

 
38.68

Vested
 
(939
)
 
 
Forfeited
 
(496
)
 
 
Outstanding at December 31, 2017
 
4,199

 
 
Deferred Revenue (Tables)
Deferred Revenue, by Arrangement
Deferred revenue consisted of the following:
 
December 31,
 
2017
 
2016
Current:
 
 
 
Domains
$
638.5

 
$
531.2

Hosting and presence
444.7

 
370.8

Business applications
181.6

 
141.5

 
$
1,264.8

 
$
1,043.5

Noncurrent:
 
 
 
Domains
$
341.3

 
$
311.1

Hosting and presence
183.2

 
163.4

Business applications
72.3

 
58.2

 
$
596.8

 
$
532.7

Accrued Expenses and Other Current Liabilities (Tables)
Schedule of Accounts Payable and Accrued Liabilities
Accrued expenses and other current liabilities consisted of the following:
 
December 31,
 
2017
 
2016
Derivative liabilities
$
206.4

 
$
—

Accrued payroll and employee benefits
98.7

 
74.0

Tax-related accruals
78.5

 
15.8

Accrued acquisition-related expenses and acquisition consideration payable
32.9

 
13.4

Accrued marketing and advertising expenses
10.3

 
9.8

Current portion of capital lease obligation
4.8

 
6.9

Accrued other
38.0

 
23.1

 
$
469.6

 
$
143.0

Long-Term Debt (Tables)
Schedule of Long-term Debt Instruments 
Long-term debt consisted of the following:
 
December 31,
 
2017
 
2016
Term loans (effective interest rate of 4.1% at December 31, 2017 and 4.9% at December 31, 2016)
$
2,482.3

 
$
1,072.5

Revolving Credit Loan
—

 
—

Total
2,482.3

 
1,072.5

Less: unamortized original issue discount on long-term debt(1)
(33.0
)
 
(30.5
)
Less: unamortized debt issuance costs(1)
(21.8
)
 
(2.3
)
Less: current portion of long-term debt
(16.7
)
 
(4.0
)
 
$
2,410.8

 
$
1,035.7

 
 
(1)
Original issue discount and debt issuance costs are amortized to interest expense over the life of the related debt instruments using the effective interest method.
Schedule of Maturities of Long-term Debt 
Aggregate principal payments, exclusive of any unamortized original issue discount and debt issuance costs, due on long-term debt as of December 31, 2017 are as follows:
Year Ending December 31:
 
2018
$
25.0

2019
25.0

2020
25.0

2021
25.0

2022
25.0

Thereafter
2,357.3

 
$
2,482.3

Derivatives and Hedging (Tables)
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value 
The following table summarizes our outstanding derivative instruments, all of which are designated as cash flow hedges, on a gross basis:
 
Notional Amount
 
Derivative Assets
 
Derivative Liabilities
 
December 31, 2017
 
December 31, 2016
 
December 31, 2017
 
December 31, 2016
 
December 31, 2017
 
December 31, 2016
 
 
 
 
 
Balance Sheet Location(2)
Fair Value
 
Balance Sheet Location(2)
Fair Value
 
Balance Sheet Location(2)
Fair Value
 
Balance Sheet Location(2)
Fair Value
Derivative Instrument:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Level 2:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contracts
$
241.3

 
$
—

 
PP
$
—

 
PP
$
0.7

 
ACC
$
4.4

 
ACC
$
0.1

Cross-currency swap (1)
1,478.3

 
—

 
PP
—

 
PP
—

 
ACC
182.9

 
ACC
—

Interest rate swap
1,315.5

 
—

 
PP
—

 
PP
—

 
ACC
19.1

 
ACC
—

     Total hedges
$
3,035.1

 
$
—

 
 
$
—

 
 
$
0.7

 
 
$
206.4

 
 
$
0.1

 
 
(1)
The notional value for the cross-currency swap reflects €1,234.0 million translated to U.S. dollar at the foreign currency rate in effect at December 31, 2017 of approximately 1.20.
(2)
PP = Prepaid expenses and other current assets; ACC = Accrued expenses and other current liabilities.
Derivative Instruments, Gain (Loss) 
The following table summarizes the locations and amounts of gains (losses) recognized within earnings related to our cash flow hedging relationships:
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
Revenue
 
Interest Expense
 
Other Income (Expense), Net
 
Revenue
 
Interest Expense
 
Other Income (Expense), Net
 
Revenue
 
Interest Expense
 
Other Income (Expense), Net
Foreign Exchange Forward Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reclassified from AOCI into income
$
0.8

 
$
—

 
$
—

 
$
1.8

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Cross-Currency Swap:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reclassified from AOCI into income (1)
—

 
21.6

 
(163.8
)
 
—

 
—

 
—

 
—

 
—

 
—

Interest Rate Swap:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reclassified from AOCI into income
—

 
(12.8
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

     Total hedges
$
0.8

 
$
8.8

 
$
(163.8
)
 
$
1.8

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
 
(1)
The amount reflected in other income (expense), net for 2017 includes $162.8 million reclassified from AOCI to offset the earnings impact of the remeasurement of the Euro-denominated intercompany loan hedged by the cross-currency swap.
The following table summarizes the effect of our designated cash flow hedging derivative instruments on AOCI:
 
Unrealized Gains (Losses) Recognized in Other Comprehensive Income
 
Year Ended December 31,
 
2017
 
2016
 
2015
Derivative Instrument:
 
 
 
 
 
Foreign exchange forward contracts(1)
$
(9.3
)
 
$
(0.4
)
 
$
3.4

Cross-currency swap
(20.1
)
 
—

 
—

Interest rate swap
(19.1
)
 
—

 
—

     Total hedges
$
(48.5
)
 
$
(0.4
)
 
$
3.4

 
 
(1)
Amounts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI.
Commitments and Contingencies (Tables)
Schedule of Future Minimum Lease Payments for Capital Leases 
Future minimum lease obligations under capital leases and non-cancelable operating leases with initial terms in excess of one year at December 31, 2017 are as follows:
Year Ending December 31:
 
Capital
Leases
 
Operating
Leases
2018
 
$
5.1

 
$
28.8

2019
 
3.5

 
24.7

2020
 
1.1

 
17.4

2021
 
—

 
14.6

2022
 
—

 
12.5

Thereafter
 
—

 
41.7

Total minimum payments
 
9.7

 
$
139.7

Less: amount representing interest
 
(0.4
)
 
 
Capital lease obligation
 
$
9.3

 
 
Future minimum payments under this lease as of December 31, 2017 are as follows:
Year Ending December 31:
 
2018
$
3.2

2019
3.2

2020
3.5

2021
3.6

2022
3.6

Thereafter
8.4

 
$
25.5

Schedule of Future Minimum Rental Payments for Operating Leases 
Future minimum lease obligations under capital leases and non-cancelable operating leases with initial terms in excess of one year at December 31, 2017 are as follows:
Year Ending December 31:
 
Capital
Leases
 
Operating
Leases
2018
 
$
5.1

 
$
28.8

2019
 
3.5

 
24.7

2020
 
1.1

 
17.4

2021
 
—

 
14.6

2022
 
—

 
12.5

Thereafter
 
—

 
41.7

Total minimum payments
 
9.7

 
$
139.7

Less: amount representing interest
 
(0.4
)
 
 
Capital lease obligation
 
$
9.3

 
 
Long-term Purchase Commitment 
Future minimum obligations under these non-cancelable agreements with initial terms in excess of one year at December 31, 2017 are as follows:
Year Ending December 31:
 
2018
$
27.6

2019
15.9

2020
7.7

2021
4.9

2022
1.9

Thereafter
1.3

Total minimum payments
$
59.3

Income Taxes (Tables)
Schedule of Components of Income Tax Expense (Benefit) 
Our tax benefit (provision) includes U.S. federal, state and foreign income taxes. The domestic and foreign components of our income (loss) from continuing operations before income taxes were as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
U.S.
$
180.6

 
$
(28.5
)
 
$
(121.2
)
Foreign
(73.8
)
 
7.0

 
0.6

Income (loss) from continuing operations before income taxes
$
106.8

 
$
(21.5
)
 
$
(120.6
)
Our benefit (provision) for income taxes was as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Current:
 
 
 
 
 
Federal
$
(1.4
)
 
$
(0.3
)
 
$
(0.3
)
State
(0.6
)
 
(0.3
)
 
(0.1
)
Foreign
(9.5
)
 
(3.5
)
 
(2.4
)
 
(11.5
)
 
(4.1
)
 
(2.8
)
Deferred:
 
 
 
 
 
Federal
9.6

 
3.1

 
2.4

State
0.8

 
0.3

 
0.4

Foreign
20.0

 
0.3

 
0.2

 
30.4

 
3.7

 
3.0

Benefit (provision) for income taxes
$
18.9

 
$
(0.4
)
 
$
0.2

Schedule of Effective Income Tax Rate Reconciliation 
A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate was as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Expected benefit (provision) at U.S. federal statutory tax rate of 35%
$
(37.4
)
 
$
7.5

 
$
42.2

Effect of TCJA U.S. federal rate reduction from 35% to 21%, net of the effect on valuation allowances
7.9

 
—

 
—

Effect of Desert Newco's corporate subsidiaries
27.4

 
(0.1
)
 
2.8

TRA liability adjustment
24.3

 
(3.8
)
 
—

Foreign earnings
(15.3
)
 
(0.9
)
 
(2.2
)
State taxes, net of federal benefit
(3.1
)
 
0.1

 
5.4

Income of non-controlling interests
0.9

 
(1.8
)
 
(15.6
)
Other
(0.4
)
 
0.1

 
(0.7
)
Effect of changes in valuation allowances, excluding effect of TCJA U.S. federal rate reduction
14.6

 
(1.5
)
 
(31.7
)
Benefit (provision) for income taxes
$
18.9

 
$
(0.4
)
 
$
0.2

Schedule of Deferred Tax Assets and Liabilities 
The components of our net (DTL) DTAs were as follows:
 
December 31,
 
2017
 
2016
DTAs:
 
 
 
NOLs
$
247.8

 
$
164.8

Credits and incentives
3.0

 
2.7

Investment in Desert Newco
429.9

 
180.6

Deferred interest
10.9

 
10.8

TRA liability
16.8

 
14.1

Unrealized gains/losses
9.7

 
—

Other
4.4

 
2.2

Valuation allowance
(711.1
)
 
(361.5
)
Total DTAs
11.4

 
13.7

DTLs:
 
 
 
Identified intangible assets
(155.8
)
 
(8.7
)
Total DTLs
(155.8
)
 
(8.7
)
Net (DTL) DTAs
$
(144.4
)
 
$
5.0

Summary of Operating Loss Carryforwards 
As of December 31, 2017, we have U.S. federal, state and foreign gross NOLs, credits and incentives, a portion of which will begin to expire in 2030 and continue through 2036, as follows:
 
Gross NOLs, Credits and Incentives
 
Portion Subject to a Valuation Allowance
Federal NOLs and credits
$
913.5

 
$
893.9

State NOLs, credits and incentives
1,118.8

 
1,101.0

Foreign NOLs
30.3

 
30.0

Total NOLs, credits and incentives
$
2,062.6

 
$
2,024.9

Summary of Tax Credit Carryforwards 
As of December 31, 2017, we have U.S. federal, state and foreign gross NOLs, credits and incentives, a portion of which will begin to expire in 2030 and continue through 2036, as follows:
 
Gross NOLs, Credits and Incentives
 
Portion Subject to a Valuation Allowance
Federal NOLs and credits
$
913.5

 
$
893.9

State NOLs, credits and incentives
1,118.8

 
1,101.0

Foreign NOLs
30.3

 
30.0

Total NOLs, credits and incentives
$
2,062.6

 
$
2,024.9

Income (Loss) Per Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted 
A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per share is as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Numerator:
 
 
 
 
 
Income (loss) from continuing operations
$
125.7

 
$
(21.9
)
 
$
(120.4
)
Income from discontinued operations, net of income taxes
14.1

 
—

 
—

Net income (loss)
139.8


(21.9
)

(120.4
)
Less: net income (loss) attributable to non-controlling interests
3.4

 
(5.4
)
 
(73.0
)
Net income (loss) attributable to GoDaddy Inc.
$
136.4

 
$
(16.5
)
 
$
(47.4
)
Denominator:
 
 
 
 
 
Weighted-average shares of Class A common stock outstanding—basic
108,779

 
79,835

 
58,676

Effect of dilutive securities:
 
 
 
 
 
Class B common stock
57,999

 
—

 
—

Options and vesting LLC Units
8,791

 
—

 
—

RSUs and ESPP shares
1,485

 
—

 
—

Weighted-average shares of Class A Common stock outstanding—diluted
177,054


79,835


58,676

 
 
 
 
 
 
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—basic:
 
 
 
 
 
      Continuing operations
$
1.17

 
$
(0.21
)
 
$
(0.81
)
      Discontinued operations
0.08

 
—

 
—

Net income (loss) attributable to GoDaddy Inc.
$
1.25


$
(0.21
)

$
(0.81
)
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—diluted:(1)
 
 
 
 
 
     Continuing operations
$
0.71

 
$
(0.21
)
 
$
(0.81
)
     Discontinued operations
0.08

 
—

 
—

Net income (loss) attributable to GoDaddy Inc.
$
0.79


$
(0.21
)

$
(0.81
)

 
 
(1)
The dilutive income per share calculations exclude the net income (loss) attributable to non-controlling interests.
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share 
The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted income (loss) per share because the effect of including such potentially dilutive shares would have been antidilutive:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Class B common stock
—

 
82,068

 
90,366

Options and vesting LLC Units
—

 
13,517

 
15,159

RSUs and ESPP shares
—

 
363

 
139

 
—

 
95,948

 
105,664

Schedule of Stock by Class 
Total shares of common stock outstanding were as follows:
 
December 31,
 
2017
 
2016
Class A common stock
132,993

 
88,558

Class B common stock
35,006

 
78,554

 
167,999

 
167,112

Geographic Information (Tables)
Revenue from External Customers by Geographic Areas 
Revenue by geography is based on the customer's billing address, and was as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
U.S.
$
1,504.5

 
$
1,350.1

 
$
1,192.6

International
727.4

 
497.8

 
414.7

 
$
2,231.9

 
$
1,847.9

 
$
1,607.3

Long-lived Assets by Geographic Areas 
Property and equipment, net by geography was as follows:
 
Year Ended December 31,
 
2017
 
2016
U.S.
221.2

 
216.7

France
31.6

 
—

International
45.1

 
14.3

 
$
297.9

 
$
231.0

Related Party Transactions (Tables)
Schedule of Related Party Transactions
Amounts paid to affiliates of KKR related to their participation as lenders under our Credit Facility were as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Principal
$
0.1

 
$
0.1

 
$
5.3

Interest and other fees
0.3

 
0.8

 
1.4

Payments made to YAM, other than those associated with the repayment of the senior note in April 2015, as described in Note 10, were as follows:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Interest on the senior note
$
—

 
$
—

 
$
9.2

Accumulated Other Comprehensive Income (Loss) (Tables)
OCI Activity Accumulated in Equity
The following table presents OCI activity accumulated in equity:
 
Foreign Currency Translation Adjustments
 
Net Unrealized Gains (Losses) on Cash Flow Hedges(1)
 
Total Accumulated Other Comprehensive Income (Loss)
Balance as of December 31, 2015
$
(0.2
)
 
$
3.4

 
$
3.2

 
 
 
 
 
 
Other comprehensive income (loss) before reclassifications
(0.1
)
 
1.4

 
1.3

Amounts reclassified from AOCI
—

 
(1.8
)
 
(1.8
)
Other comprehensive income (loss) - 2016
(0.1
)
 
(0.4
)
 
(0.5
)
Balance as of December 31, 2016
(0.3
)
 
3.0

 
2.7

Other comprehensive income (loss) before reclassifications
(39.6
)
 
(202.7
)
 
(242.3
)
Amounts reclassified from AOCI
(46.9
)
 
154.2

 
107.3

Other comprehensive income (loss) - 2017
(86.5
)
 
(48.5
)
 
(135.0
)
 
$
(86.8
)
 
$
(45.5
)
 
(132.3
)
  Less: AOCI attributable to non-controlling interests
 
 
 
 
(46.6
)
Balance as of December 31, 2017
 
 
 
 
$
(85.7
)
 
 
(1)
Amounts shown for our foreign exchange forward contracts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI.
Selected Quarterly Financial Data (Unaudited) (Tables)
Schedule of Quarterly Financial Information
The operating results for any quarter are not necessarily indicative of results for any future period.
 
Three Months Ended
 
Dec. 31, 2017
 
Sept. 30, 2017
 
Jun. 30, 2017
 
Mar. 31, 2017
 
Dec. 31, 2016
 
Sept. 30, 2016
 
Jun. 30, 2016
 
Mar. 31, 2016
Total revenue
$
602.2

 
$
582.2

 
$
557.8

 
$
489.7

 
$
485.9

 
$
472.1

 
$
456.2

 
$
433.7

Operating income
23.0

 
32.1

 
6.1

 
5.7

 
17.9

 
21.2

 
9.7

 
1.3

Income (loss) from continuing operations
98.3

 
7.1

 
23.4

 
(3.1
)
 
(0.8
)
 
8.3

 
(11.1
)
 
(18.3
)
Net income (loss)
94.8

 
30.0

 
18.1

 
(3.1
)
 
(0.8
)
 
8.3

 
(11.1
)
 
(18.3
)
Net income (loss) attributable to GoDaddy Inc.
92.6

 
22.4

 
20.8

 
0.6

 
(1.9
)
 
4.8

 
(8.9
)
 
(10.5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—basic:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$
0.74

 
$
0.05

 
$
0.25

 
$
0.01

 
$
(0.02
)
 
$
0.06

 
$
(0.11
)
 
$
(0.15
)
Discontinued operations
(0.02
)
 
0.15

 
(0.05
)
 
—

 
—

 
—

 
—

 
—

Net income (loss) attributable to GoDaddy, Inc.
$
0.72


$
0.20


$
0.20


$
0.01


$
(0.02
)

$
0.06


$
(0.11
)

$
(0.15
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—diluted:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$
0.56

 
$
0.04

 
$
0.13

 
$
0.01

 
$
(0.02
)
 
$
0.05

 
$
(0.11
)
 
$
(0.15
)
Discontinued operations
(0.02
)
 
0.13

 
(0.03
)
 
—

 
—

 
—

 
—

 
—

Net income (loss) attributable to GoDaddy, Inc.
$
0.54

 
$
0.17

 
$
0.10

 
$
0.01

 
$
(0.02
)
 
$
0.05

 
$
(0.11
)
 
$
(0.15
)
Organization and Background (Details)
12 Months Ended
Dec. 31, 2017
segment
Entity Information [Line Items]
 
Number of operating segments
1 
Number of reporting units
1 
Desert Newco, LLC
 
Entity Information [Line Items]
 
Ownership percent in Desert Newco
79.00% 
Business Acquisitions - Acquisition of Host Europe Holdings Limited (Details) (Host Europe Finance Co. Limited (HEG))
0 Months Ended 12 Months Ended 0 Months Ended
Apr. 3, 2017
USD ($)
Apr. 3, 2017
EUR (€)
Dec. 31, 2017
USD ($)
Apr. 3, 2017
Developed technology
Apr. 3, 2017
Minimum
Developed technology
Apr. 3, 2017
Maximum
Developed technology
Business Acquisition [Line Items]
 
 
 
 
 
 
Total consideration transferred
 
€ 1,700,000,000 
 
 
 
 
Acquisition related costs
18,600,000 
 
 
 
 
 
Weighted average useful life
8 years 9 months 
8 years 9 months 
 
6 years 
6 years 
8 years 
Revenue of company acquired, since the acquisition
 
 
155,100,000 
 
 
 
Net income (loss) from continuing operations attributable to GoDaddy Inc.
 
 
$ 17,200,000 
 
 
 
Business Acquisitions - Schedule of Assets Acquired and Liabilities Assumed (Details)
In Millions, unless otherwise specified
Dec. 31, 2017
USD ($)
Apr. 3, 2017
EUR (€)
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Apr. 3, 2017
Host Europe Finance Co. Limited (HEG)
USD ($)
Business Acquisition [Line Items]
 
 
 
 
 
Total purchase consideration
 
 
 
 
$ 1,849.5 
Fair value of assets acquired:
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
27.2 
Other current assets
 
 
 
 
66.3 
Assets held for sale
 
 
 
 
497.5 
Property and equipment, net
 
 
 
 
61.9 
Intangible assets, net
 
 
 
 
595.7 
Other assets
 
 
 
 
9.3 
Amount attributable to assets acquired
 
 
 
 
1,257.9 
Fair value of liabilities assumed:
 
 
 
 
 
Accounts payable and accrued expenses
 
 
 
 
62.8 
Current portion of deferred revenue
 
 
 
 
45.5 
Liabilities directly associated with the assets held for sale
 
 
 
 
93.0 
Other long-term liabilities
 
 
 
 
14.0 
Deferred tax liabilities
 
 
 
 
177.6 
Amount attributable to liabilities assumed
 
 
 
 
392.9 
Goodwill
$ 2,859.9 
 
$ 1,718.4 
$ 1,663.4 
$ 984.5 
Euro to U.S. dollar exchange rate for translation
 
1.066 
 
 
 
Summary of Significant Accounting Policies - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 0 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Apr. 7, 2015
Reorganization Parties and Continuing LLC Owners
Investor
Tax Receivable Agreement
agreement
Dec. 31, 2015
Reorganization Parties and Continuing LLC Owners
Investor
Tax Receivable Agreement
Apr. 7, 2015
Reorganization Parties and Continuing LLC Owners
Investor
Tax Receivable Agreement
Dec. 31, 2017
Other Nonoperating Income (Expense)
Dec. 31, 2016
Other Nonoperating Income (Expense)
Dec. 31, 2015
Other Nonoperating Income (Expense)
Dec. 31, 2017
Assets Held under Capital Leases
Dec. 31, 2016
Assets Held under Capital Leases
Entity Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents related to payment processor transactions
$ 26.9 
$ 15.5 
 
 
 
 
 
 
 
 
 
Total property and equipment
646.0 
509.0 
 
 
 
 
 
 
 
31.5 
34.8 
Accumulated depreciation
348.1 
278.0 
 
 
 
 
 
 
 
22.4 
23.8 
Depreciation
88.8 
69.9 
61.3 
 
 
 
 
 
 
 
 
Foreign currency (losses)
 
 
 
 
 
 
(1.5)
(4.6)
(3.5)
 
 
Advertising expense
205.8 
194.0 
177.6 
 
 
 
 
 
 
 
 
Prepaid advertising
9.6 
1.3 
 
 
 
 
 
 
 
 
 
Contractual commitment for certain marketing agreements, due in 2018
1.1 
 
 
 
 
 
 
 
 
 
 
Contractual commitment for certain marketing agreements, due in 2019
$ 0.2 
 
 
 
 
 
 
 
 
 
 
Number of tax receivable agreements
 
 
 
5 
 
 
 
 
 
 
 
Percent of tax benefits owed under tax receivable agreement
 
 
 
 
85.00% 
85.00% 
 
 
 
 
 
Business Acquisitions - Schedule of Finite-lived Intangible Assets (Details) (Host Europe Finance Co. Limited (HEG), USD $)
In Millions, unless otherwise specified
0 Months Ended
Apr. 3, 2017
Apr. 3, 2017
Business Acquisition [Line Items]
 
 
Weighted average useful life
8 years 9 months 
 
Intangible assets, net
 
$ 595.7 
Trade names
 
 
Business Acquisition [Line Items]
 
 
Weighted average useful life
10 years 
 
Intangible assets, net
 
75.2 
Developed technology
 
 
Business Acquisition [Line Items]
 
 
Weighted average useful life
6 years 
 
Intangible assets, net
 
62.4 
Customer relationships
 
 
Business Acquisition [Line Items]
 
 
Weighted average useful life
9 years 
 
Intangible assets, net
 
$ 458.1 
Summary of Significant Accounting Policies - Schedule of Property Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Property, Plant and Equipment [Line Items]
 
 
Total property and equipment
$ 646.0 
$ 509.0 
Less: accumulated depreciation and amortization
(348.1)
(278.0)
Property and equipment, net
297.9 
231.0 
Computer equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Total property and equipment
355.0 
283.3 
Property and equipment, useful life
3 years 
 
Software
 
 
Property, Plant and Equipment [Line Items]
 
 
Total property and equipment
33.9 
27.3 
Property and equipment, useful life
3 years 
 
Land
 
 
Property, Plant and Equipment [Line Items]
 
 
Total property and equipment
9.0 
9.0 
Buildings, including improvements
 
 
Property, Plant and Equipment [Line Items]
 
 
Total property and equipment
147.4 
123.1 
Buildings, including improvements |
Minimum
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, useful life
5 years 
 
Buildings, including improvements |
Maximum
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, useful life
40 years 
 
Building acquired under lease financing obligation
 
 
Property, Plant and Equipment [Line Items]
 
 
Total property and equipment
18.1 
18.1 
Property and equipment, useful life
40 years 
 
Leasehold improvements
 
 
Property, Plant and Equipment [Line Items]
 
 
Total property and equipment
60.6 
36.1 
Other
 
 
Property, Plant and Equipment [Line Items]
 
 
Total property and equipment
$ 22.0 
$ 12.1 
Other |
Minimum
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, useful life
1 year 
 
Other |
Maximum
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, useful life
20 years 
 
Business Acquisitions - Proforma Consolidated Results of Operations (Details) (Host Europe Finance Co. Limited (HEG), USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Host Europe Finance Co. Limited (HEG)
 
 
Business Acquisition [Line Items]
 
 
Total revenue
$ 2,315.1 
$ 2,058.4 
Net income (loss) attributable to GoDaddy Inc.
143.9 
(40.0)
Net income (loss) from continuing operations attributable to GoDaddy Inc.
$ 128.8 
$ (46.1)
Net income (loss) from continuing operations attributable to GoDaddy Inc. per share of Class A common stock - basic (in dollars per share)
$ 1.23 
$ (0.53)
Net income (loss) from continuing operations attributable to GoDaddy Inc. per share of Class A common stock - diluted (in dollars per share)
$ 0.75 
$ (0.53)
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Details)
12 Months Ended
Dec. 31, 2017
Customer relationships |
Minimum
 
Finite-Lived Intangible Assets [Line Items]
 
Finite-lived intangible assets, useful life
3 years 
Customer relationships |
Maximum
 
Finite-Lived Intangible Assets [Line Items]
 
Finite-lived intangible assets, useful life
9 years 
Developed technology |
Minimum
 
Finite-Lived Intangible Assets [Line Items]
 
Finite-lived intangible assets, useful life
5 years 
Developed technology |
Maximum
 
Finite-Lived Intangible Assets [Line Items]
 
Finite-lived intangible assets, useful life
7 years 
Trade names |
Minimum
 
Finite-Lived Intangible Assets [Line Items]
 
Finite-lived intangible assets, useful life
3 years 
Trade names |
Maximum
 
Finite-Lived Intangible Assets [Line Items]
 
Finite-lived intangible assets, useful life
10 years 
Business Acquisitions - Other Acquisitions (Details) (USD $)
12 Months Ended 1 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Apr. 30, 2017
Other Acquisitions
Dec. 31, 2016
Other Acquisitions
buisness
Dec. 31, 2015
Other Acquisitions
buisness
Apr. 30, 2017
Time-based Milestone Payments
Other Acquisitions
Apr. 30, 2017
Revenue and Integration Milestones
Other Acquisitions
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
Cash consideration
 
 
 
$ 45,700,000 
 
 
 
 
Consideration payable
 
 
 
9,000,000 
7,000,000 
 
 
 
Contingent consideration liabilities
 
 
 
33,700,000 
 
 
15,000,000 
15,000,000 
Goodwill
2,859,900,000 
1,718,400,000 
1,663,400,000 
63,900,000 
55,000,000 
2,200,000 
 
 
Expected tax deductible amount
 
 
 
0 
 
 
 
 
Intangible assets, net
 
 
 
28,500,000 
21,400,000 
3,200,000 
 
 
Net liabilities assumed
 
 
 
13,000,000 
11,300,000 
900,000 
 
 
Weighted average useful life
 
 
 
5 years 6 months 
 
 
 
 
Number of businesses acquired
 
 
 
 
6 
4 
 
 
Aggregate consideration transferred
1,876,900,000 
118,500,000 
64,700,000 
 
125,500,000 
64,700,000 
 
 
Contingent consideration
 
 
 
 
6,000,000 
 
 
 
Identified indefinite-lived intangible assets acquired
 
 
 
 
59,300,000 
60,200,000 
 
 
Goodwill, amount not expected to be tax deductible
 
 
 
 
37,500,000 
 
 
 
Reduction in deferred revenue
 
 
 
 
1,100,000 
 
 
 
Payment of aggregate holdback and contingent consideration related to prior acquisitions
$ 10,800,000 
$ 0 
$ 0 
 
 
 
 
 
Summary of Significant Accounting Policies - Assumptions Used in Valuing Stock Options (Details) (Employee Stock Option)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Employee Stock Option
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected term (in years)
6 years 1 month 9 days 
6 years 1 month 20 days 
6 years 3 months 18 days 
Expected volatility
37.40% 
37.70% 
39.10% 
Risk-free interest rate
2.00% 
1.40% 
1.70% 
Summary of Significant Accounting Policies - Fair value of Assets and Liabilities Measured on Recurring Basis (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Morgan Stanley
 
 
Liabilities:
 
 
Repurchase agreement amount
$ 70.0 
$ 80.0 
Repurchase agreement, call option notice period
31 days 
31 days 
Wells Fargo
 
 
Liabilities:
 
 
Repurchase agreement amount
60.0 
50.0 
Fair Value, Measurements, Recurring
 
 
Short-term Investments, Fair Value Disclosure [Abstract]
 
 
Derivative assets
0 
0.7 
Total assets measured and recorded at fair value
192.3 
193.2 
Liabilities:
 
 
Contingent consideration liabilities
20.7 
 
Derivative liabilities
206.4 
0.1 
Total liabilities measured and recorded at fair value
227.1 
0.1 
Fair Value, Measurements, Recurring |
Reverse repurchase agreements
 
 
Cash and Cash Equivalents, Fair Value Disclosure [Abstract]
 
 
Cash and cash equivalents, fair value
130.0 
 
Short-term Investments, Fair Value Disclosure [Abstract]
 
 
Short-term investments, fair value
 
130.0 
Fair Value, Measurements, Recurring |
Commercial paper
 
 
Cash and Cash Equivalents, Fair Value Disclosure [Abstract]
 
 
Cash and cash equivalents, fair value
50.0 
55.9 
Short-term Investments, Fair Value Disclosure [Abstract]
 
 
Short-term investments, fair value
11.9 
 
Fair Value, Measurements, Recurring |
Certificates of deposit and time deposits
 
 
Short-term Investments, Fair Value Disclosure [Abstract]
 
 
Short-term investments, fair value
0.4 
6.6 
Fair Value, Measurements, Recurring |
Level 1
 
 
Short-term Investments, Fair Value Disclosure [Abstract]
 
 
Derivative assets
0 
0 
Total assets measured and recorded at fair value
0.4 
6.6 
Liabilities:
 
 
Contingent consideration liabilities
0 
 
Derivative liabilities
0 
0 
Total liabilities measured and recorded at fair value
0 
0 
Fair Value, Measurements, Recurring |
Level 1 |
Reverse repurchase agreements
 
 
Cash and Cash Equivalents, Fair Value Disclosure [Abstract]
 
 
Cash and cash equivalents, fair value
0 
 
Short-term Investments, Fair Value Disclosure [Abstract]
 
 
Short-term investments, fair value
 
0 
Fair Value, Measurements, Recurring |
Level 1 |
Commercial paper
 
 
Cash and Cash Equivalents, Fair Value Disclosure [Abstract]
 
 
Cash and cash equivalents, fair value
0 
0 
Short-term Investments, Fair Value Disclosure [Abstract]
 
 
Short-term investments, fair value
0 
 
Fair Value, Measurements, Recurring |
Level 1 |
Certificates of deposit and time deposits
 
 
Short-term Investments, Fair Value Disclosure [Abstract]
 
 
Short-term investments, fair value
0.4 
6.6 
Fair Value, Measurements, Recurring |
Level 2
 
 
Short-term Investments, Fair Value Disclosure [Abstract]
 
 
Derivative assets
0 
0.7 
Total assets measured and recorded at fair value
191.9 
186.6 
Liabilities:
 
 
Contingent consideration liabilities
0 
 
Derivative liabilities
206.4 
0.1 
Total liabilities measured and recorded at fair value
206.4 
0.1 
Fair Value, Measurements, Recurring |
Level 2 |
Reverse repurchase agreements
 
 
Cash and Cash Equivalents, Fair Value Disclosure [Abstract]
 
 
Cash and cash equivalents, fair value
130.0 
 
Short-term Investments, Fair Value Disclosure [Abstract]
 
 
Short-term investments, fair value
 
130.0 
Fair Value, Measurements, Recurring |
Level 2 |
Commercial paper
 
 
Cash and Cash Equivalents, Fair Value Disclosure [Abstract]
 
 
Cash and cash equivalents, fair value
50.0 
55.9 
Short-term Investments, Fair Value Disclosure [Abstract]
 
 
Short-term investments, fair value
11.9 
 
Fair Value, Measurements, Recurring |
Level 2 |
Certificates of deposit and time deposits
 
 
Short-term Investments, Fair Value Disclosure [Abstract]
 
 
Short-term investments, fair value
0 
0 
Fair Value, Measurements, Recurring |
Level 3
 
 
Short-term Investments, Fair Value Disclosure [Abstract]
 
 
Derivative assets
0 
0 
Total assets measured and recorded at fair value
0 
0 
Liabilities:
 
 
Contingent consideration liabilities
20.7 
 
Derivative liabilities
0 
0 
Total liabilities measured and recorded at fair value
20.7 
0 
Fair Value, Measurements, Recurring |
Level 3 |
Reverse repurchase agreements
 
 
Cash and Cash Equivalents, Fair Value Disclosure [Abstract]
 
 
Cash and cash equivalents, fair value
0 
 
Short-term Investments, Fair Value Disclosure [Abstract]
 
 
Short-term investments, fair value
 
0 
Fair Value, Measurements, Recurring |
Level 3 |
Commercial paper
 
 
Cash and Cash Equivalents, Fair Value Disclosure [Abstract]
 
 
Cash and cash equivalents, fair value
0 
0 
Short-term Investments, Fair Value Disclosure [Abstract]
 
 
Short-term investments, fair value
0 
 
Fair Value, Measurements, Recurring |
Level 3 |
Certificates of deposit and time deposits
 
 
Short-term Investments, Fair Value Disclosure [Abstract]
 
 
Short-term investments, fair value
$ 0 
$ 0 
Sale of PlusServer - Narrative (Details)
In Millions, unless otherwise specified
12 Months Ended 0 Months Ended
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Aug. 31, 2017
PlusServer
USD ($)
Aug. 31, 2017
PlusServer
EUR (€)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
Purchase price
 
 
 
 
€ 447.7 
Gain on disposal
$ 33.2 
$ 0 
$ 0 
$ 33.2 
 
Goodwill and Intangible Assets - Goodwill (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Goodwill [Roll Forward]
 
 
Balance, beginning of period
$ 1,718.4 
$ 1,663.4 
Acquisitions
1,048.4 
55.0 
Impact of foreign currency translation
93.1 
 
Balance, end of period
$ 2,859.9 
$ 1,718.4 
Goodwill and Intangible Assets - Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, accumulated amortization
$ (418.1)
$ (439.9)
Finite-lived intangible assets, net
728.8 
 
Indefinite-lived Intangible Assets [Line Items]
 
 
Domains sold
(18.8)
(14.4)
Intangible assets, gross (excluding goodwill)
1,762.9 
1,170.8 
Intangible assets, net (excluding goodwill)
1,326.0 
716.5 
Trade names and branding
 
 
Indefinite-lived Intangible Assets [Line Items]
 
 
Indefinite-lived intangible assets (excluding goodwill)
445.0 
445.0 
Domain Portfolio
 
 
Indefinite-lived Intangible Assets [Line Items]
 
 
Indefinite-lived intangible assets (excluding goodwill)
152.2 
106.1 
Indefinite-lived intangible assets (excluding goodwill), gross
171.0 
120.5 
Domains sold
(18.8)
(14.4)
Customer-related
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
868.0 
367.4 
Finite-lived intangible assets, accumulated amortization
(320.4)
(245.4)
Finite-lived intangible assets, net
547.6 
122.0 
Developed technology
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
184.5 
226.0 
Finite-lived intangible assets, accumulated amortization
(82.2)
(187.0)
Finite-lived intangible assets, net
102.3 
39.0 
Trade names
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
94.4 
11.9 
Finite-lived intangible assets, accumulated amortization
(15.5)
(7.5)
Finite-lived intangible assets, net
$ 78.9 
$ 4.4 
Goodwill and Intangible Assets - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
 
 
 
Intangible assets purchased
$ 52.0 
$ 1.3 
$ 23.5 
Amortization expense
117.0 
90.2 
97.5 
Weighted Average
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Weighted average remaining amortization period
86 months 
 
 
Customer-related
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Intangible assets purchased
1.5 
 
22.5 
Useful life
36 months 
 
48 months 
Customer-related |
Weighted Average
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Useful life
104 months 
 
 
Developed technology |
Weighted Average
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Useful life
73 months 
 
 
Trade names |
Weighted Average
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Useful life
111 months 
 
 
Domain Portfolio
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Intangible assets purchased
$ 50.5 
 
 
Goodwill and Intangible Assets - Future Amortization of Finite Lived Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
 
2018
$ 130.3 
2019
111.1 
2020
104.5 
2021
81.8 
2022
80.2 
Thereafter
220.9 
Finite-lived intangible assets, net
$ 728.8 
Stockholders' Equity - Initial Public Offering (Details) (USD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended
Apr. 7, 2015
Apr. 7, 2015
Class A Common Stock
 
 
Class of Stock [Line Items]
 
 
Shares issued during IPO (in shares)
26,000,000 
 
Share price (in USD per share)
 
$ 20.00 
Proceeds from issuance of IPO
$ 480.6 
 
Class B Common Stock
 
 
Class of Stock [Line Items]
 
 
Shares issued during IPO (in shares)
90,425,000 
 
Unidentified Affiliated Shareholders |
Affiliated Entity |
Class A Common Stock
 
 
Class of Stock [Line Items]
 
 
Shares issued during IPO (in shares)
2,500 
 
Investor Corp Mergers |
Private Placement |
Class A Common Stock
 
 
Class of Stock [Line Items]
 
 
Shares issued during IPO (in shares)
38,826,000 
 
Stockholders' Equity - Restatement of Certificate of Incorporation (Details) (USD $)
Dec. 31, 2017
Dec. 31, 2016
Mar. 31, 2015
Class of Stock [Line Items]
 
 
 
Preferred stock shares authorized (in shares)
50,000,000 
50,000,000 
50,000,000 
Preferred stock par value (in dollars per share)
$ 0.001 
$ 0.001 
$ 0.001 
Class A Common Stock
 
 
 
Class of Stock [Line Items]
 
 
 
Common stock shares authorized (in shares)
1,000,000,000 
1,000,000,000 
1,000,000,000 
Par value (in dollars per share)
$ 0.001 
$ 0.001 
$ 0.001 
Class B Common Stock
 
 
 
Class of Stock [Line Items]
 
 
 
Common stock shares authorized (in shares)
500,000,000 
500,000,000 
500,000,000 
Par value (in dollars per share)
$ 0.001 
$ 0.001 
$ 0.001 
Stockholders' Equity - Secondary Offerings and LLC Unit Repurchase (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
1 Months Ended
Dec. 31, 2017
Sep. 30, 2017
May 31, 2017
Apr. 30, 2016
Secondary Offering
 
 
 
 
Class of Stock [Line Items]
 
 
 
 
Increase in additional paid-in capital
$ 4.7 
$ 10.8 
$ 10.8 
$ 8.8 
LLC Units |
Secondary Offering
 
 
 
 
Class of Stock [Line Items]
 
 
 
 
Sale of stock, price per share (in dollars per share)
 
 
$ 37.44 
 
Conversion of stock, shares converted (in shares)
4,689 
13,774 
16,701 
10,382 
Repurchases of LLC Units (in shares)
 
 
7,345 
 
Repurchases of LLC Units, amount
 
 
275.0 
 
Class A Common Stock |
Underwritten Public Offering
 
 
 
 
Class of Stock [Line Items]
 
 
 
 
Sale of stock, price per share (in dollars per share)
$ 47.32 
$ 44.00 
$ 38.50 
$ 30.25 
Sale of stock, number of shares issued (in shares)
7,228 
20,000 
27,615 
18,975 
Class A Common Stock |
Add-on Secondary Offering
 
 
 
 
Class of Stock [Line Items]
 
 
 
 
Sale of stock, number of shares issued (in shares)
50 
50 
100 
0 
Proceeds from issuance of common stock
2.4 
2.2 
3.7 
0 
Class A Common Stock |
Management Team Secondary Offering
 
 
 
 
Class of Stock [Line Items]
 
 
 
 
Sale of stock, number of shares issued (in shares)
 
 
521 
 
Proceeds from issuance of common stock
 
 
$ 19.2 
 
Equity-Based Compensation Plans - Narrative (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Employee Stock Option
Dec. 31, 2017
Restricted Stock Units (RSUs)
Dec. 31, 2017
2015 Equity Incentive Plan
Stock Compensation Plan
Mar. 31, 2015
2015 Equity Incentive Plan
Stock Compensation Plan
Jan. 1, 2017
2015 Equity Incentive Plan
Class A Common Stock
Stock Compensation Plan
Mar. 31, 2015
2011 Unit Incentive Plan and Other Unidentified Plan
Class A Common Stock
Stock Compensation Plan
Dec. 31, 2017
2015 Employee Stock Purchase Plan
Employee Stock
Mar. 31, 2015
2015 Employee Stock Purchase Plan
Employee Stock
Jan. 1, 2017
2015 Employee Stock Purchase Plan
Class A Common Stock
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
Shares reserved for future issuance (in shares)
 
 
 
10,285,000 
 
 
 
2,000,000 
 
Shares rolled over (in shares)
 
 
16,024,000 
 
 
28,133,000 
2,551,000 
 
 
Annual increase in shares reserved for issuance under equity incentive plan (in shares)
 
 
 
20,571,000 
 
 
 
1,000,000 
 
Annual increase in shares reserved for issuance under equity incentive plan, percent
 
 
 
4.00% 
 
 
 
1.00% 
 
Additional capital shares reserved for future issuance (in shares)
 
 
 
 
6,684,000 
 
 
 
1,000,000 
Unrecognized compensation costs
$ 36.6 
$ 87.8 
 
 
 
 
 
 
 
Weighted average recognition period
1 year 8 months 19 days 
2 years 5 months 26 days 
 
 
 
 
 
 
 
Equity-Based Compensation Plans - Equiy Based Award Activity (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Employee Stock Option
 
 
 
Options Outstanding [Roll Forward]
 
 
 
Options outstanding, beginning of period (in shares)
18,628 
27,419 
26,652 
Grants (in shares)
2,077 
2,136 
3,926 
Exercises (in shares)
(6,000)
(9,187)
(1,749)
Forfeitures (in shares)
(1,245)
(1,740)
(1,410)
Options outstanding, end of period (in shares)
13,460 
18,628 
27,419 
Weighted-average grant date fair value of options granted (in dollars per share)
$ 15.07 
$ 11.97 
$ 9.77 
Weighted Average Exercise Price
 
 
 
Options outstanding, weighted average exercise price, beginning of period (in dollars per share)
$ 14.06 
$ 10.25 
$ 8.27 
Weighted-average exercise price of options granted (in dollars per share)
$ 38.03 
$ 30.93 
$ 23.66 
Weighted-average exercise price of options exercised (in dollars per share)
$ 10.18 
$ 5.99 
$ 7.65 
Weighted-average exercise price of options forfeited (in dollars per share)
$ 23.46 
$ 17.25 
$ 13.47 
Options outstanding, weighted average exercise price, end of period (in dollars per share)
$ 18.63 
$ 14.06 
$ 10.25 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
 
 
 
Options vested (in shares)
6,737 
 
 
Options vested, weighted average exercise price (in dollars per share)
$ 12.72 
 
 
Options outstanding, weighted average remaining contractual life (in years)
6 years 6 months 21 days 
 
 
Options vested, weighted average remaining contractual life (in years)
5 years 7 months 13 days 
 
 
Options exercised, aggregate intrinsic value
$ 187.1 
$ 242.4 
$ 35.5 
Options outstanding, aggregate intrinsic value
426.0 
 
 
Options vested, aggregate intrinsic value
$ 253.1 
 
 
Restricted Stock Units (RSUs)
 
 
 
RSU Activity [Roll Forward]
 
 
 
Outstanding, beginning of period (in shares)
2,757 
93 
87 
Granted (in shares)
2,877 
3,129 
52 
Vested (in shares)
(939)
(241)
(46)
Forfeited (in shares)
(496)
(224)
0 
Outstanding, end of period (in shares)
4,199 
2,757 
93 
Granted, weighted average grant date fair value (in dollars per share)
$ 38.68 
$ 30.98 
$ 31.50 
Deferred Revenue (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue, current
$ 1,264.8 
$ 1,043.5 
Deferred revenue, noncurrent
596.8 
532.7 
Domains
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue, current
638.5 
531.2 
Deferred revenue, noncurrent
341.3 
311.1 
Hosting and presence
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue, current
444.7 
370.8 
Deferred revenue, noncurrent
183.2 
163.4 
Business applications
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue, current
181.6 
141.5 
Deferred revenue, noncurrent
$ 72.3 
$ 58.2 
Accrued Expenses and Other Current Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Payables and Accruals [Abstract]
 
 
Derivative liabilities
$ 206.4 
$ 0 
Accrued payroll and employee benefits
98.7 
74.0 
Tax-related accruals
78.5 
15.8 
Accrued acquisition-related expenses and acquisition consideration payable
32.9 
13.4 
Current portion of capital lease obligation
10.3 
9.8 
Current portion of capital lease obligation
4.8 
6.9 
Accrued other
38.0 
23.1 
Accrued expenses and other current liabilities
$ 469.6 
$ 143.0 
Long-Term Debt - Schedule of Long Term Debt (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Debt Instrument [Line Items]
 
 
Long-term Debt
$ 2,482.3 
$ 1,072.5 
Less unamortized original issue discounts on long-term debt
(33.0)
(30.5)
Less unamortized deferred financing fees
(21.8)
(2.3)
Less current portion of long-term debt
(16.7)
(4.0)
Long-term debt, net of current portion
2,410.8 
1,035.7 
Term Loan |
Term Loan Due May 2021
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
2,482.3 
1,072.5 
Effective interest rate
4.10% 
4.90% 
Line of Credit |
Revolving Credit Loan Due May 2019 |
Revolving Credit Facility
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
$ 0 
$ 0 
Long-Term Debt - Credit Facility (Details) (USD $)
3 Months Ended 12 Months Ended 1 Months Ended 0 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 1 Months Ended
Sep. 30, 2017
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Term Loan
Term Loan Due May 2021
Nov. 30, 2017
Secured Debt
Feb. 28, 2017
Secured Debt
Refinanced Term Loan
Apr. 3, 2017
Secured Debt
Acquisition Term Loan
Apr. 3, 2017
Secured Debt
Acquisition Term Loan
Apr. 30, 2015
Revolving Credit Facility
Line of Credit
Revolving Credit Loan Due May 2019
Dec. 31, 2017
Revolving Credit Facility
Line of Credit
Revolving Credit Loan Due May 2019
Feb. 28, 2017
Revolving Credit Facility
Line of Credit
Refinanced Revolving Credit Loan
Feb. 28, 2017
Revolving Credit Facility
Line of Credit
Refinanced Revolving Credit Loan
Maximum
Feb. 28, 2017
Revolving Credit Facility
Line of Credit
Refinanced Revolving Credit Loan
London Interbank Offered Rate (LIBOR)
Minimum
Feb. 28, 2017
Revolving Credit Facility
Line of Credit
Refinanced Revolving Credit Loan
London Interbank Offered Rate (LIBOR)
Maximum
Feb. 28, 2017
Revolving Credit Facility
Line of Credit
Refinanced Revolving Credit Loan
Federal Funds Rate
Nov. 30, 2017
Revolving Credit Facility
Line of Credit
Refinanced Credit Facility
Nov. 30, 2017
Revolving Credit Facility
Line of Credit
Refinanced Credit Facility
London Interbank Offered Rate (LIBOR)
Nov. 30, 2017
Revolving Credit Facility
Line of Credit
Refinanced Credit Facility
Federal Funds Rate
Nov. 30, 2017
Revolving Credit Facility
Line of Credit
Refinanced Credit Facility
Base Rate
Feb. 28, 2017
Option 1
Revolving Credit Facility
Line of Credit
Refinanced Revolving Credit Loan
London Interbank Offered Rate (LIBOR)
Feb. 28, 2017
Option 1
Revolving Credit Facility
Line of Credit
Refinanced Revolving Credit Loan
London Interbank Offered Rate (LIBOR)
Minimum
Feb. 28, 2017
Option 1
Revolving Credit Facility
Line of Credit
Refinanced Revolving Credit Loan
London Interbank Offered Rate (LIBOR)
Maximum
Nov. 30, 2017
Option 1
Revolving Credit Facility
Line of Credit
Refinanced Credit Facility
London Interbank Offered Rate (LIBOR)
Dec. 31, 2017
Level 2
Term Loan
Term Loan Due May 2021
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, face amount
 
 
 
 
$ 1,100,000,000.0 
 
$ 1,072,500,000 
 
$ 1,425,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity
 
 
 
 
 
 
 
 
 
 
150,000,000.0 
150,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term of note
 
 
 
 
 
 
7 years 
 
 
 
 
5 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity upon closing of acquisition
 
 
 
 
 
 
 
 
 
 
 
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt discount, percent
 
 
 
 
 
 
0.25% 
0.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from term loan
 
1,421,400,000 
0 
0 
 
 
1,069,800,000 
1,421,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis spread on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
2.00% 
2.50% 
0.50% 
 
2.25% 
0.50% 
1.25% 
1.00% 
1.00% 
1.50% 
1.00% 
 
Net leverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
5.75 
 
 
 
 
 
 
 
 
 
 
 
 
Usage capacity
 
 
 
 
 
 
 
 
 
 
 
 
35.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction if corporate credit rating improves
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(0.25%)
 
 
 
 
 
 
 
 
Loss on debt extinguishment
(5,300,000)
(7,300,000)
0 
(21,400,000)
 
(2,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less unamortized original issue discounts on long-term debt
 
(33,000,000)
(30,500,000)
 
 
(3,700,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General and administrative
 
282,400,000 1
221,200,000 1
219,700,000 
 
3,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unused commitment fee upon achievement of certain financial ratios
 
 
 
 
 
 
 
 
 
 
0.375% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayment of revolving credit loan
 
15,300,000 
11,000,000 
11,000,000 
 
 
 
 
 
75,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available borrowing capacity
 
 
 
 
 
 
 
 
 
 
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt, fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 2,488,500,000 
Long-Term Debt - Bridge Loan (Details)
3 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Sep. 30, 2017
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Nov. 30, 2017
Secured Debt
USD ($)
Apr. 3, 2017
Secured Debt
Bridge Loan
USD ($)
Apr. 3, 2017
Secured Debt
Bridge Loan
EUR (€)
Dec. 31, 2017
PlusServer
Secured Debt
Bridge Loan
USD ($)
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
Long-term debt, face amount
 
 
 
 
 
$ 533,000,000 
€ 500,000,000 
 
Loss on debt extinguishment
5,300,000 
7,300,000 
0 
21,400,000 
2,000,000 
 
 
 
Interest expense
 
 
 
 
 
 
 
$ 12,400,000 
Long-Term Debt - Senior Note (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 1 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Loans Held by Related Parties
YAM Special Holdings, Inc
Affiliated Entity
Senior Notes
Note Payable Due December 2019
Dec. 31, 2016
Loans Held by Related Parties
YAM Special Holdings, Inc
Affiliated Entity
Senior Notes
Note Payable Due December 2019
Dec. 31, 2015
Loans Held by Related Parties
YAM Special Holdings, Inc
Affiliated Entity
Senior Notes
Note Payable Due December 2019
Apr. 30, 2015
Loans Held by Related Parties
YAM Special Holdings, Inc
Affiliated Entity
Senior Notes
Note Payable Due December 2019
Debt Instrument [Line Items]
 
 
 
 
 
 
 
Repayments of related party debt
 
 
 
 
 
 
$ 316.0 
Repayments of principal
 
 
 
 
 
 
300.0 
Prepayment premiums
 
 
 
 
 
 
13.5 
Interest on long-term debt, net of swap benefit
88.3 
46.5 
59.1 
0 
0 
9.2 
2.5 
Amortization of original issue discount and debt issuance costs
 
 
 
 
 
 
$ 7.9 
Long-Term Debt - Schedule of Debt Maturities (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Debt Disclosure [Abstract]
 
 
2018
$ 25.0 
 
2019
25.0 
 
2020
25.0 
 
2021
25.0 
 
2022
25.0 
 
Thereafter
2,357.3 
 
Long-term Debt
$ 2,482.3 
$ 1,072.5 
Derivatives and Hedging - Schedule of Derivative Instruments (Details)
In Millions, unless otherwise specified
Apr. 3, 2017
EUR (€)
Dec. 31, 2017
Cash Flow Hedging
Foreign exchange forward contracts
Designated as Hedging Instrument
USD ($)
Dec. 31, 2017
Cash Flow Hedging
Cross-currency swap
Designated as Hedging Instrument
EUR (€)
Apr. 30, 2017
Cash Flow Hedging
Cross-currency swap
Designated as Hedging Instrument
USD ($)
Apr. 30, 2017
Cash Flow Hedging
Cross-currency swap
Designated as Hedging Instrument
EUR (€)
Apr. 30, 2017
Cash Flow Hedging
Interest rate swap
Designated as Hedging Instrument
USD ($)
Dec. 31, 2017
Level 2
Cash Flow Hedging
Designated as Hedging Instrument
USD ($)
Dec. 31, 2016
Level 2
Cash Flow Hedging
Designated as Hedging Instrument
USD ($)
Dec. 31, 2017
Level 2
Cash Flow Hedging
Foreign exchange forward contracts
Designated as Hedging Instrument
USD ($)
Dec. 31, 2016
Level 2
Cash Flow Hedging
Foreign exchange forward contracts
Designated as Hedging Instrument
USD ($)
Dec. 31, 2017
Level 2
Cash Flow Hedging
Foreign exchange forward contracts
Designated as Hedging Instrument
Prepaid Expenses and Other Current Assets
USD ($)
Dec. 31, 2016
Level 2
Cash Flow Hedging
Foreign exchange forward contracts
Designated as Hedging Instrument
Prepaid Expenses and Other Current Assets
USD ($)
Dec. 31, 2017
Level 2
Cash Flow Hedging
Foreign exchange forward contracts
Designated as Hedging Instrument
Accrued Expenses and Other Current Liabilities
USD ($)
Dec. 31, 2016
Level 2
Cash Flow Hedging
Foreign exchange forward contracts
Designated as Hedging Instrument
Accrued Expenses and Other Current Liabilities
USD ($)
Dec. 31, 2017
Level 2
Cash Flow Hedging
Cross-currency swap
Designated as Hedging Instrument
USD ($)
Dec. 31, 2016
Level 2
Cash Flow Hedging
Cross-currency swap
Designated as Hedging Instrument
USD ($)
Dec. 31, 2017
Level 2
Cash Flow Hedging
Cross-currency swap
Designated as Hedging Instrument
Prepaid Expenses and Other Current Assets
USD ($)
Dec. 31, 2016
Level 2
Cash Flow Hedging
Cross-currency swap
Designated as Hedging Instrument
Prepaid Expenses and Other Current Assets
USD ($)
Dec. 31, 2017
Level 2
Cash Flow Hedging
Cross-currency swap
Designated as Hedging Instrument
Accrued Expenses and Other Current Liabilities
USD ($)
Dec. 31, 2016
Level 2
Cash Flow Hedging
Cross-currency swap
Designated as Hedging Instrument
Accrued Expenses and Other Current Liabilities
USD ($)
Dec. 31, 2017
Level 2
Cash Flow Hedging
Interest rate swap
Designated as Hedging Instrument
USD ($)
Dec. 31, 2016
Level 2
Cash Flow Hedging
Interest rate swap
Designated as Hedging Instrument
USD ($)
Dec. 31, 2017
Level 2
Cash Flow Hedging
Interest rate swap
Designated as Hedging Instrument
Prepaid Expenses and Other Current Assets
USD ($)
Dec. 31, 2016
Level 2
Cash Flow Hedging
Interest rate swap
Designated as Hedging Instrument
Prepaid Expenses and Other Current Assets
USD ($)
Dec. 31, 2017
Level 2
Cash Flow Hedging
Interest rate swap
Designated as Hedging Instrument
Accrued Expenses and Other Current Liabilities
USD ($)
Dec. 31, 2016
Level 2
Cash Flow Hedging
Interest rate swap
Designated as Hedging Instrument
Accrued Expenses and Other Current Liabilities
USD ($)
Derivatives, Fair Value [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notional Amount
 
$ 241.3 
€ 1,234.0 
$ 1,325.4 
€ 1,243.3 
$ 1,325.4 
$ 3,035.1 
$ 0 
$ 241.3 
$ 0 
 
 
 
 
$ 1,478.3 
$ 0 
 
 
 
 
$ 1,315.5 
$ 0 
 
 
 
 
Derivative assets
 
 
 
 
 
 
0 
0.7 
 
 
0 
0.7 
 
 
 
 
0 
0 
 
 
 
 
0 
0 
 
 
Derivative liabilities
 
 
 
 
 
 
$ 206.4 
$ 0.1 
 
 
 
 
$ 4.4 
$ 0.1 
 
 
 
 
$ 182.9 
$ 0 
 
 
 
 
$ 19.1 
$ 0 
Euro to U.S. dollar exchange rate for translation
1.066 
 
1.20 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives and Hedging - Schedule of Derivative Instruments, Gain (Loss) (Details) (Designated as Hedging Instrument, Cash Flow Hedging, USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Unrealized Gains (Losses) Recognized in Other Comprehensive Income
$ (48.5)
$ (0.4)
$ 3.4 
Revenue
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Reclassified from AOCI into income
0.8 
1.8 
0 
Interest Expense
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Reclassified from AOCI into income
8.8 
0 
0 
Other Income (Expense), Net
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Reclassified from AOCI into income
(163.8)
0 
0 
Foreign exchange forward contracts
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Unrealized Gains (Losses) Recognized in Other Comprehensive Income
(9.3)
(0.4)
3.4 
Foreign exchange forward contracts |
Revenue
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Reclassified from AOCI into income
0.8 
1.8 
0 
Foreign exchange forward contracts |
Interest Expense
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Reclassified from AOCI into income
0 
0 
0 
Foreign exchange forward contracts |
Other Income (Expense), Net
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Reclassified from AOCI into income
0 
0 
0 
Cross-currency swap
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Unrealized Gains (Losses) Recognized in Other Comprehensive Income
(20.1)
0 
0 
Cross-currency swap |
Revenue
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Reclassified from AOCI into income
0 
0 
0 
Cross-currency swap |
Interest Expense
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Reclassified from AOCI into income
21.6 
0 
0 
Cross-currency swap |
Other Income (Expense), Net
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Reclassified from AOCI into income
(163.8)
0 
0 
Interest rate swap
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Unrealized Gains (Losses) Recognized in Other Comprehensive Income
(19.1)
0 
0 
Interest rate swap |
Revenue
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Reclassified from AOCI into income
0 
0 
0 
Interest rate swap |
Interest Expense
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Reclassified from AOCI into income
(12.8)
0 
0 
Interest rate swap |
Other Income (Expense), Net
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Reclassified from AOCI into income
0 
0 
0 
Euro-Denominated Intercompany Loan |
Cross-currency swap |
Other Income (Expense), Net
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Reclassified from AOCI into income
$ 162.8 
 
 
Derivatives and Hedging - Narrative (Details)
In Millions, unless otherwise specified
12 Months Ended 1 Months Ended 1 Months Ended
Dec. 31, 2017
USD ($)
Dec. 31, 2017
Cash Flow Hedging
Designated as Hedging Instrument
Foreign exchange forward contracts
USD ($)
Apr. 30, 2017
Cash Flow Hedging
Designated as Hedging Instrument
Cross-currency swap
USD ($)
Apr. 30, 2017
Cash Flow Hedging
Designated as Hedging Instrument
Cross-currency swap
EUR (€)
Dec. 31, 2017
Cash Flow Hedging
Designated as Hedging Instrument
Cross-currency swap
EUR (€)
Apr. 30, 2017
Cash Flow Hedging
Designated as Hedging Instrument
Interest rate swap
USD ($)
Apr. 30, 2017
Euro-Denominated Intercompany Loan
Derivative [Line Items]
 
 
 
 
 
 
 
Net deferred gains from cash flow hedges
$ 11.0 
 
 
 
 
 
 
Notional Amount
 
$ 241.3 
$ 1,325.4 
€ 1,243.3 
€ 1,234.0 
$ 1,325.4 
 
Derivative remaining maturity
 
12 months 
 
 
 
 
 
Derivative term of contract
 
 
5 years 
5 years 
 
5 years 
 
Interest rate
 
 
 
 
 
 
3.00% 
Derivative fixed interest rate
 
 
5.44% 
5.44% 
 
5.44% 
 
Commitments and Contingencies - Narrative (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Apr. 30, 2013
consecutive_option
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Schedule of Capital Lease Obligations [Line Items]
 
 
 
 
Lease term
11 years 
 
 
 
Monthly rent
$ 0.3 
 
 
 
Number of consecutive options to extend the term
2 
 
 
 
Renewal term
5 years 
 
 
 
Monthly rent for renewal term, as percent of prevailing market rates
95.00% 
 
 
 
Rent expense
 
38.3 
43.3 
42.2 
Sales tax liability
 
18.8 
6.1 
 
Lease finance obligation
 
 
 
 
Schedule of Capital Lease Obligations [Line Items]
 
 
 
 
Capitalized construction costs
18.1 
 
 
 
Property and equipment, useful life
40 years 
 
 
 
Lease financing obligation
 
19.6 
 
 
Lease finance obligation |
Other long-term liabilities
 
 
 
 
Schedule of Capital Lease Obligations [Line Items]
 
 
 
 
Lease financing obligation, long-term
 
19.4 
 
 
Minimum
 
 
 
 
Schedule of Capital Lease Obligations [Line Items]
 
 
 
 
Potential additional losses related to indirect taxes
 
0 
 
 
Maximum
 
 
 
 
Schedule of Capital Lease Obligations [Line Items]
 
 
 
 
Potential additional losses related to indirect taxes
 
$ 10.0 
 
 
Commitments and Contingencies - Future Minimum Payments (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Operating Leases
 
2018
$ 28.8 
2019
24.7 
2020
17.4 
2021
14.6 
2022
12.5 
Thereafter
41.7 
Total minimum payments
139.7 
Purchase Obligation, Fiscal Year Maturity [Abstract]
 
2018
27.6 
2019
15.9 
2020
7.7 
2021
4.9 
2022
1.9 
Thereafter
1.3 
Total minimum payments
59.3 
Lease finance obligation
 
Schedule of Capital Lease Obligations [Line Items]
 
2018
3.2 
2019
3.2 
2020
3.5 
2021
3.6 
2022
3.6 
Thereafter
8.4 
Total minimum payments
25.5 
Other capital lease
 
Schedule of Capital Lease Obligations [Line Items]
 
2018
5.1 
2019
3.5 
2020
1.1 
2021
0 
2022
0 
Thereafter
0 
Total minimum payments
9.7 
Less: amount representing interest
(0.4)
Capital lease obligation
$ 9.3 
Defined Contribution Plan (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Retirement Benefits [Abstract]
 
 
 
Maximum employee contributions, percent
100.00% 
 
 
Employer discretionary matching contribution
$ 9.9 
$ 8.5 
$ 8.6 
Income Taxes - Components of Income Tax Expense (Benefit) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
U.S.
$ 180.6 
$ (28.5)
$ (121.2)
Foreign
(73.8)
7.0 
0.6 
Income (loss) from continuing operations before income taxes
106.8 
(21.5)
(120.6)
Current:
 
 
 
Federal
(1.4)
(0.3)
(0.3)
State
(0.6)
(0.3)
(0.1)
Foreign
(9.5)
(3.5)
(2.4)
Current Income Tax Expense (Benefit)
(11.5)
(4.1)
(2.8)
Deferred:
 
 
 
Federal
9.6 
3.1 
2.4 
State
0.8 
0.3 
0.4 
Foreign
20.0 
0.3 
0.2 
Deferred Income Tax Expense (Benefit)
30.4 
3.7 
3.0 
Benefit (provision) for income taxes
$ 18.9 
$ (0.4)
$ 0.2 
Income Taxes - Income Tax Rate Reconciliation (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Effective Income Tax Rate Reconciliation, Amount [Abstract]
 
 
 
Expected benefit (provision) at U.S. federal statutory tax rate of 35%
$ (37.4)
$ 7.5 
$ 42.2 
Effect of TCJA U.S. federal rate reduction from 35% to 21%, net of the effect on valuation allowances
7.9 
0 
0 
Effect of Desert Newco's corporate subsidiaries
27.4 
(0.1)
2.8 
TRA liability adjustment
24.3 
(3.8)
0 
Foreign earnings
(15.3)
(0.9)
(2.2)
State taxes, net of federal benefit
(3.1)
0.1 
5.4 
Income of non-controlling interests
0.9 
(1.8)
(15.6)
Other
(0.4)
0.1 
(0.7)
Effect of changes in valuation allowances, excluding effect of TCJA U.S. federal rate reduction
14.6 
(1.5)
(31.7)
Benefit (provision) for income taxes
$ 18.9 
$ (0.4)
$ 0.2 
Federal statutory rate
35.00% 
35.00% 
35.00% 
Income Taxes - Net Deferred Tax Assets (Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
DTAs:
 
 
NOLs
$ 247.8 
$ 164.8 
Credits and incentives
3.0 
2.7 
Investment in Desert Newco
429.9 
180.6 
Deferred interest
10.9 
10.8 
TRA liability
16.8 
14.1 
Unrealized gains/losses
9.7 
0 
Other
4.4 
2.2 
Valuation allowance
(711.1)
(361.5)
Total DTAs
11.4 
13.7 
DTLs:
 
 
Identified intangible assets
(155.8)
(8.7)
Total DTLs
(155.8)
(8.7)
Net (DTL) DTAs
(144.4)
 
Net (DTL) DTAs
 
$ 5.0 
Income Taxes - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Apr. 7, 2015
Income Tax Contingency [Line Items]
 
 
 
 
Effect of TCJA U.S. federal rate reduction from 35% to 21%, net of the effect on valuation allowances
$ 7.9 
$ 0 
$ 0 
 
Tax reform, remeasurement of deferred tax assets
(327.4)
 
 
 
Tax reform, increase to valuation allowance
335.3 
 
 
 
Increase in deferred tax assets related to investment in Desert Newco
 
183.6 
 
 
Increase in deferred tax liabilities from intangible asset
173.7 
 
 
 
Increase in deferred tax assets related to NOLs and credit carryforwards
 
36.7 
 
 
Operating loss and tax credit carryforwards
 
 
 
89.2 
Desert Newco, LLC
 
 
 
 
Income Tax Contingency [Line Items]
 
 
 
 
Increase in deferred tax assets related to investment in Desert Newco
674.6 
 
 
 
Increase in deferred tax assets related to NOLs and credit carryforwards
201.6 
 
 
 
Tax reform, remeasurement of deferred tax assets for change in tax rate
$ 118.7 
 
 
 
Income Taxes - Net Operating Losses, Credits and Incentives (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Tax Credit Carryforward [Line Items]
 
Gross NOLs, Credits and Incentives
$ 2,062.6 
Portion Subject to a Valuation Allowance
2,024.9 
Federal NOLs and credits
 
Tax Credit Carryforward [Line Items]
 
Gross NOLs, Credits and Incentives
913.5 
Portion Subject to a Valuation Allowance
893.9 
State NOLs, credits and incentives
 
Tax Credit Carryforward [Line Items]
 
Gross NOLs, Credits and Incentives
1,118.8 
Portion Subject to a Valuation Allowance
1,101.0 
Foreign NOLs
 
Tax Credit Carryforward [Line Items]
 
Gross NOLs, Credits and Incentives
30.3 
Portion Subject to a Valuation Allowance
$ 30.0 
Income (Loss) Per Share - Narrative (Details)
0 Months Ended 12 Months Ended
Apr. 7, 2015
Dec. 31, 2017
Dec. 31, 2015
Class A Common Stock
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
Shares issued during IPO (in shares)
26,000,000 
 
 
Class B Common Stock
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
Shares issued during IPO (in shares)
90,425,000 
 
 
Conversion feature of Class B common stock, number of Class A common shares
 
1 
 
Common Stock |
Class A Common Stock
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
Shares issued during IPO (in shares)
26,000,000 
721,000 
26,000,000 
Income (Loss) Per Share - Reconciliation (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
$ 98.3 
$ 7.1 
$ 23.4 
$ (3.1)
$ (0.8)
$ 8.3 
$ (11.1)
$ (18.3)
$ 125.7 
$ (21.9)
$ (120.4)
Income from discontinued operations, net of income taxes (includes $33.2 gain on disposal, net of tax)
 
 
 
 
 
 
 
 
14.1 
0 
0 
Net income (loss)
94.8 
30.0 
18.1 
(3.1)
(0.8)
8.3 
(11.1)
(18.3)
139.8 
(21.9)
(120.4)
Less: net income (loss) attributable to non-controlling interests
 
 
 
 
 
 
 
 
3.4 
(5.4)
(44.8)
Net income (loss) attributable to GoDaddy Inc.
92.6 
22.4 
20.8 
0.6 
(1.9)
4.8 
(8.9)
(10.5)
136.4 
(16.5)
(75.6)
Class A Common Stock
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
Weighted-average shares of Class A common stock outstanding—basic
 
 
 
 
 
 
 
 
108,779 1
79,835 1
58,676 1
Weighted-average shares of Class A Common stock outstanding—diluted
 
 
 
 
 
 
 
 
177,054 1
79,835 1
58,676 1
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—basic:
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) from continuing operations per share, basic (in USD per share)
$ 0.74 
$ 0.05 
$ 0.25 
$ 0.01 
$ (0.02)
$ 0.06 
$ (0.11)
$ (0.15)
$ 1.17 1
$ (0.21)1
$ (0.81)1
Net income (loss) from discontinued operations per share, basic (in USD per share)
$ (0.02)
$ 0.15 
$ (0.05)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.08 1
$ 0.00 1
$ 0.00 1
Net income (loss) per share—basic (in USD per share)
$ 0.72 
$ 0.20 
$ 0.20 
$ 0.01 
$ (0.02)
$ 0.06 
$ (0.11)
$ (0.15)
$ 1.25 1
$ (0.21)1
$ (0.81)1
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—diluted:
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) from continuing operations per share, diluted (in USD per share)
$ 0.56 
$ 0.04 
$ 0.13 
$ 0.01 
$ (0.02)
$ 0.05 
$ (0.11)
$ (0.15)
$ 0.71 1
$ (0.21)1
$ (0.81)1
Net income (loss) from continuing operations per share, diluted (in USD per share)
$ (0.02)
$ 0.13 
$ (0.03)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.08 1
$ 0.00 1
$ 0.00 1
Net income (loss) per share—diluted (in USD per share)
$ 0.54 
$ 0.17 
$ 0.10 
$ 0.01 
$ (0.02)
$ 0.05 
$ (0.11)
$ (0.15)
$ 0.79 1
$ (0.21)1
$ (0.81)1
Class B Common Stock
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
Effect of dilutive securities
 
 
 
 
 
 
 
 
57,999 
0 
0 
Options and vesting LLC Units
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
Effect of dilutive securities
 
 
 
 
 
 
 
 
8,791 
0 
0 
RSUs and ESPP shares
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
Effect of dilutive securities
 
 
 
 
 
 
 
 
1,485 
0 
0 
Pro Forma
 
 
 
 
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Less: net income (loss) attributable to non-controlling interests
 
 
 
 
 
 
 
 
3.4 
(5.4)
(73.0)
Net income (loss) attributable to GoDaddy Inc.
 
 
 
 
 
 
 
 
$ 136.4 
$ (16.5)
$ (47.4)
Income (Loss) Per Share - Schedule of Anti-dilutive Securities Excluded From Diluted EPS (Details)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
Antidilutive securities excluded from diluted loss per unit calculation (in shares)
0 
95,948 
105,664 
Class B Common Stock
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
Antidilutive securities excluded from diluted loss per unit calculation (in shares)
0 
82,068 
90,366 
Options and vesting LLC Units
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
Antidilutive securities excluded from diluted loss per unit calculation (in shares)
0 
13,517 
15,159 
RSUs and ESPP shares
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
Antidilutive securities excluded from diluted loss per unit calculation (in shares)
0 
363 
139 
Income (Loss) Per Share - Schedule of Shares Outstanding (Details)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Class of Stock [Line Items]
 
 
Common stock outstanding (in shares)
167,999 
167,112 
Class A Common Stock
 
 
Class of Stock [Line Items]
 
 
Common stock outstanding (in shares)
132,993 
88,558 
Class B Common Stock
 
 
Class of Stock [Line Items]
 
 
Common stock outstanding (in shares)
35,006 
78,554 
Geographic Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 602.2 
$ 582.2 
$ 557.8 
$ 489.7 
$ 485.9 
$ 472.1 
$ 456.2 
$ 433.7 
$ 2,231.9 
$ 1,847.9 
$ 1,607.3 
Property and equipment, net
297.9 
 
 
 
231.0 
 
 
 
297.9 
231.0 
 
U.S.
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
1,504.5 
1,350.1 
1,192.6 
Property and equipment, net
221.2 
 
 
 
216.7 
 
 
 
221.2 
216.7 
 
International
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
727.4 
497.8 
414.7 
France
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Property and equipment, net
31.6 
 
 
 
0 
 
 
 
31.6 
0 
 
International
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Property and equipment, net
$ 45.1 
 
 
 
$ 14.3 
 
 
 
$ 45.1 
$ 14.3 
 
Related Party Transactions - Tax Distributions to Desert Newco's Owners (Details) (Desert Newco, LLC, USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Related Party Transaction [Line Items]
 
 
Distributions to unit and option holders
$ 10.0 
$ 18.4 
YAM Special Holdings, Inc
 
 
Related Party Transaction [Line Items]
 
 
Distributions to unit and option holders
4.0 
7.3 
Silver Lake Partners
 
 
Related Party Transaction [Line Items]
 
 
Distributions to unit and option holders
2.3 
4.1 
Kohlberg Kravis Roberts & Co LP
 
 
Related Party Transaction [Line Items]
 
 
Distributions to unit and option holders
2.1 
3.9 
Technology Crossover Venture
 
 
Related Party Transaction [Line Items]
 
 
Distributions to unit and option holders
1.2 
2.2 
Other Desert Newco Owners
 
 
Related Party Transaction [Line Items]
 
 
Distributions to unit and option holders
$ 0.4 
$ 0.9 
Related Party Transactions - Sponsors (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 1 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Apr. 30, 2015
Sponsors
Affiliated Entity
Termination Payment for Transaction and Fee Monitoring Agreement
General and administrative expense
Dec. 31, 2017
Credit Facility
Affiliates of KKR
Affiliated Entity
Loans Held by Related Parties
Dec. 31, 2016
Credit Facility
Affiliates of KKR
Affiliated Entity
Loans Held by Related Parties
Dec. 31, 2015
Credit Facility
Affiliates of KKR
Affiliated Entity
Loans Held by Related Parties
Dec. 31, 2017
Term Loan Due May 2021
Term Loan
Dec. 31, 2016
Term Loan Due May 2021
Term Loan
Dec. 31, 2017
Term Loan Due May 2021
Affiliates of KKR
Affiliated Entity
Term Loan
Loans Held by Related Parties
Dec. 31, 2016
Term Loan Due May 2021
Affiliates of KKR
Affiliated Entity
Term Loan
Loans Held by Related Parties
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Repayments of principal
 
 
 
 
$ 0.1 
$ 0.1 
$ 5.3 
 
 
 
 
Interest and other fees
 
 
 
 
0.3 
0.8 
1.4 
 
 
 
 
Long-term Debt
2,482.3 
1,072.5 
 
 
 
 
 
2,482.3 
1,072.5 
15.4 
2.9 
Tax receivable agreements liability adjustment
$ (123.2)
$ 12.5 
$ 0 
$ 26.7 
 
 
 
 
 
 
 
Related Party Transactions - Bob Parsons and YAM (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 1 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Apr. 30, 2015
YAM Special Holdings, Inc
Board of Directors Chairman
Special Termination Benefits
Dec. 31, 2017
Note Payable Due December 2019
Senior Notes
YAM Special Holdings, Inc
Affiliated Entity
Loans Held by Related Parties
Dec. 31, 2016
Note Payable Due December 2019
Senior Notes
YAM Special Holdings, Inc
Affiliated Entity
Loans Held by Related Parties
Dec. 31, 2015
Note Payable Due December 2019
Senior Notes
YAM Special Holdings, Inc
Affiliated Entity
Loans Held by Related Parties
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
Tax receivable agreements liability adjustment
$ (123.2)
$ 12.5 
$ 0 
$ 3.0 
 
 
 
Interest on long-term debt, net of swap benefit
$ 88.3 
$ 46.5 
$ 59.1 
 
$ 0 
$ 0 
$ 9.2 
Related Party Transactions - Other (Details) (Dell Inc, Affiliated Entity, Purchase and Lease of Computer Equipment, Technology Licensing, Maintenance and Support, USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dell Inc |
Affiliated Entity |
Purchase and Lease of Computer Equipment, Technology Licensing, Maintenance and Support
 
 
 
Related Party Transaction [Line Items]
 
 
 
Purchases from related party
$ 15.2 
$ 15.4 
$ 17.5 
Accumulated Other Comprehensive Income (Loss) - OCI Activity Accumulated in Equity (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2017
Foreign Currency Translation Adjustments
Dec. 31, 2016
Foreign Currency Translation Adjustments
Dec. 31, 2017
Net Unrealized Gains (Losses) on Cash Flow Hedges
Dec. 31, 2016
Net Unrealized Gains (Losses) on Cash Flow Hedges
Dec. 31, 2017
AOCI Including Portion Attributable to Noncontrolling Interest
Dec. 31, 2016
AOCI Including Portion Attributable to Noncontrolling Interest
Dec. 31, 2017
AOCI Attributable to Noncontrolling Interest
Dec. 31, 2017
AOCI Attributable to Parent
Dec. 31, 2016
AOCI Attributable to Parent
Dec. 31, 2015
AOCI Attributable to Parent
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Equity at beginning of period
$ 546.5 
$ 714.2 
$ (0.3)
$ (0.2)
$ 3.0 
$ 3.4 
$ 2.7 
$ 3.2 
 
$ (85.7)
$ 2.7 
$ 3.2 
Other comprehensive income (loss) before reclassifications
 
 
(39.6)
(0.1)
(202.7)
1.4 
(242.3)
1.3 
 
 
 
 
Amounts reclassified from AOCI
 
 
(46.9)
0 
154.2 
(1.8)
107.3 
(1.8)
 
 
 
 
Other comprehensive income (loss)
 
 
(86.5)
(0.1)
(48.5)
(0.4)
(135.0)
(0.5)
 
 
 
 
Equity at end of period
546.5 
714.2 
(86.8)
(0.3)
(45.5)
3.0 
(132.3)
2.7 
 
(85.7)
2.7 
3.2 
Less: AOCI attributable to non-controlling interests
60.0 
151.7 
 
 
 
 
 
 
(46.6)
 
 
 
Total stockholders' equity attributable to GoDaddy Inc.
$ 486.5 
$ 562.5 
 
 
 
 
 
 
 
$ (85.7)
 
 
Accumulated Other Comprehensive Income (Loss) - Narrative (Details) (Foreign Currency Translation Adjustments, USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Foreign Currency Translation Adjustments
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Amounts reclassified from AOCI
$ 46.9 
$ 0 
Selected Quarterly Financial Data (Unaudited) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Total revenue
$ 602.2 
$ 582.2 
$ 557.8 
$ 489.7 
$ 485.9 
$ 472.1 
$ 456.2 
$ 433.7 
$ 2,231.9 
$ 1,847.9 
$ 1,607.3 
Operating income (loss)
23.0 
32.1 
6.1 
5.7 
17.9 
21.2 
9.7 
1.3 
66.9 
50.1 
(31.0)
Income (loss) from continuing operations
98.3 
7.1 
23.4 
(3.1)
(0.8)
8.3 
(11.1)
(18.3)
125.7 
(21.9)
(120.4)
Net income (loss)
94.8 
30.0 
18.1 
(3.1)
(0.8)
8.3 
(11.1)
(18.3)
139.8 
(21.9)
(120.4)
Net income (loss) attributable to GoDaddy Inc.
$ 92.6 
$ 22.4 
$ 20.8 
$ 0.6 
$ (1.9)
$ 4.8 
$ (8.9)
$ (10.5)
$ 136.4 
$ (16.5)
$ (75.6)
Class A Common Stock
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—basic:
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) from continuing operations per share, basic (in USD per share)
$ 0.74 
$ 0.05 
$ 0.25 
$ 0.01 
$ (0.02)
$ 0.06 
$ (0.11)
$ (0.15)
$ 1.17 1
$ (0.21)1
$ (0.81)1
Net income (loss) from discontinued operations per share, basic (in USD per share)
$ (0.02)
$ 0.15 
$ (0.05)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.08 1
$ 0.00 1
$ 0.00 1
Net income (loss) per share—basic (in USD per share)
$ 0.72 
$ 0.20 
$ 0.20 
$ 0.01 
$ (0.02)
$ 0.06 
$ (0.11)
$ (0.15)
$ 1.25 1
$ (0.21)1
$ (0.81)1
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—diluted:
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) from continuing operations per share, diluted (in USD per share)
$ 0.56 
$ 0.04 
$ 0.13 
$ 0.01 
$ (0.02)
$ 0.05 
$ (0.11)
$ (0.15)
$ 0.71 1
$ (0.21)1
$ (0.81)1
Net income (loss) from continuing operations per share, diluted (in USD per share)
$ (0.02)
$ 0.13 
$ (0.03)
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.08 1
$ 0.00 1
$ 0.00 1
Net income (loss) per share—diluted (in USD per share)
$ 0.54 
$ 0.17 
$ 0.10 
$ 0.01 
$ (0.02)
$ 0.05 
$ (0.11)
$ (0.15)
$ 0.79 1
$ (0.21)1
$ (0.81)1
Subsequent Events (Details) (Main Street Hub, Subsequent Event, USD $)
In Millions, unless otherwise specified
1 Months Ended
Jan. 31, 2018
Main Street Hub |
Subsequent Event
 
Subsequent Event [Line Items]
 
Acquisition of business, cash consideration
$ 125.0 
Contingent earn-out provision
$ 50.0