GODADDY INC., 10-K filed on 2/28/2017
Annual Report
Document and Entity Information Document (USD $)
12 Months Ended
Dec. 31, 2016
Jun. 30, 2016
Feb. 24, 2017
Class A Common Stock
Feb. 24, 2017
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, 2016 
 
 
 
Document Fiscal Year Focus
2016 
 
 
 
Document Fiscal Period Focus
FY 
 
 
 
Amendment Flag
false 
 
 
 
Entity Common Stock, Shares Outstanding
 
 
89,672,472 
78,409,899 
Entity Well-known Seasoned Issuer
Yes 
 
 
 
Entity Voluntary Filers
No 
 
 
 
Entity Current Reporting Status
Yes 
 
 
 
Entity Public Float
 
$ 1,476,049,440 
 
 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Current assets:
 
 
Cash and cash equivalents
$ 566.1 
$ 348.0 
Short-term investments
6.6 
4.5 
Accounts and other receivables
8.0 
4.8 
Registry deposits
20.6 
18.7 
Prepaid domain name registry fees
307.0 
292.6 
Prepaid expenses and other current assets
24.5 
25.3 
Total current assets
932.8 
693.9 
Property and equipment, net
231.0 
225.0 
Prepaid domain name registry fees, net of current portion
172.1 
163.7 
Goodwill
1,718.4 
1,663.4 
Intangible assets, net
716.5 
735.3 
Other assets
11.1 
12.1 
Deferred tax assets
5.0 
5.4 
Total assets
3,786.9 
3,498.8 
Current liabilities:
 
 
Accounts payable
61.7 
39.4 
Accrued expenses and other current liabilities
143.0 
127.0 
Payable to related parties for tax distributions
10.0 
5.3 
Deferred revenue
1,043.5 
937.7 
Long-term debt
4.0 
4.2 
Total current liabilities
1,262.2 
1,113.6 
Deferred revenue, net of current portion
532.7 
478.5 
Long-term debt, net of current portion
1,035.7 
1,039.8 
Payable to related parties pursuant to tax receivable agreements
202.6 
151.6 
Other long-term liabilities
39.5 
34.3 
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
608.3 
454.6 
Accumulated deficit
(48.7)
(32.2)
Accumulated other comprehensive income
2.7 
3.2 
Total stockholders' equity attributable to GoDaddy Inc.
562.5 
425.8 
Non-controlling interests
151.7 
255.2 
Total stockholders' equity
714.2 
681.0 
Total liabilities and stockholders' equity
3,786.9 
3,498.8 
Class A Common Stock
 
 
Stockholders' equity:
 
 
Common stock
0.1 
0.1 
Class B Common Stock
 
 
Stockholders' equity:
 
 
Common stock
$ 0.1 
$ 0.1 
Consolidated Balance Sheets Parenthetical (USD $)
Dec. 31, 2016
Dec. 31, 2015
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)
167,112,000 
157,481,000 
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)
88,558,000 
67,083,000 
Common stock outstanding (in shares)
88,558,000 
67,083,000 
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)
78,554,000 
90,398,000 
Common stock outstanding (in shares)
78,554,000 
90,398,000 
Consolidated Statements of Operations (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2016
Technology and development
Dec. 31, 2015
Technology and development
Dec. 31, 2014
Technology and development
Dec. 31, 2016
Marketing and advertising
Dec. 31, 2015
Marketing and advertising
Dec. 31, 2014
Marketing and advertising
Dec. 31, 2016
Customer care
Dec. 31, 2015
Customer care
Dec. 31, 2014
Customer care
Dec. 31, 2016
General and administrative
Dec. 31, 2015
General and administrative
Dec. 31, 2014
General and administrative
Dec. 31, 2016
Domains
Dec. 31, 2015
Domains
Dec. 31, 2014
Domains
Dec. 31, 2016
Hosting and presence
Dec. 31, 2015
Hosting and presence
Dec. 31, 2014
Hosting and presence
Dec. 31, 2016
Business applications
Dec. 31, 2015
Business applications
Dec. 31, 2014
Business applications
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 1,847.9 
$ 1,607.3 
$ 1,387.3 
 
 
 
 
 
 
 
 
 
 
 
 
$ 927.8 
$ 840.8 
$ 763.3 
$ 678.7 
$ 592.0 
$ 507.9 
$ 241.4 
$ 174.5 
$ 116.1 
Costs and operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenue (excluding depreciation and amortization)
657.8 1
565.9 1
518.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Technology and development
287.8 1
270.2 1
250.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing and advertising
228.8 1
202.2 1
164.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer care
242.1 1
221.5 1
190.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General and administrative
221.2 1
219.7 1
172.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
160.1 1
158.8 1
152.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total costs and operating expenses
1,797.8 
1,638.3 
1,449.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
50.1 
(31.0)
(61.9)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(57.2)
(69.2)
(85.0)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss on debt extinguishment
0 
(21.4)
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tax receivable agreements liability adjustment
(12.5)
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other income (expense), net
(1.9)
1.0 
0.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss before income taxes
(21.5)
(120.6)
(146.1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Provision) benefit for income taxes
(0.4)
0.2 
2.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
(21.9)
(120.4)
(143.3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less: net loss attributable to non-controlling interests
(5.4)
(44.8)
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss attributable to GoDaddy Inc.
(16.5)
(75.6)
(143.3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss per share—basic and diluted (in USD per share)
$ (0.21)2
$ (0.81)2
$ (1.11)2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average shares outstanding—basic and diluted (in shares)
79,835,000 2
58,676,000 2
38,826,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity-based compensation expense
$ 56.8 
$ 40.4 
$ 30.1 
$ 23.2 
$ 18.2 
$ 10.4 
$ 8.1 
$ 6.1 
$ 6.1 
$ 3.9 
$ 2.9 
$ 0.8 
$ 21.6 
$ 13.2 
$ 12.8 
 
 
 
 
 
 
 
 
 
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 ($)
Total Stockholders' Equity
USD ($)
Stockholders' and Members' Equity at Dec. 31, 2013
 
 
 
$ 812.5 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Net loss
(143.3)
 
 
(143.3)
 
 
 
 
 
 
 
Equity-based compensation expense
 
 
 
30.1 
 
 
 
 
 
 
 
Distributions to unit and option holders
 
 
 
(349.6)
 
 
 
 
 
 
 
Change in value of redeemable units
 
 
 
(16.9)
 
 
 
 
 
 
 
Reclassification of redeemable units to members' interest
 
 
 
75.2 
 
 
 
 
 
 
 
Other
 
 
 
2.4 
 
 
 
 
 
 
 
Stockholders' and Members' Equity at Dec. 31, 2014
 
 
 
410.4 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Net loss
(120.4)
 
 
(43.4)
 
 
 
(32.2)
 
(44.8)
(77.0)
Equity-based compensation expense
 
 
 
8.7 
 
 
31.7 
 
 
 
31.7 
Effect of the Reorganization 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 
 
 
 
 
 
Issuance of Class A common stock in initial public offering, net of offering costs
 
 
 
 
 
 
480.6 
 
 
 
480.6 
Shares issued during IPO (in shares)
 
 
 
 
26,000,000 
 
 
 
 
 
 
Liability pursuant to the tax receivable agreements resulting from the Reorganization Transactions
 
 
 
 
 
 
(151.6)
 
 
 
(151.6)
Stock option exercises and other
 
 
 
0.2 
 
 
20.8 
 
 
(8.5)
12.3 
Stock option exercises and other (in shares)
 
 
 
 
1,582,000 
(27,000)
 
 
 
 
 
Issuance of Class A common stock under employee stock purchase plan
 
 
 
 
 
 
11.5 
 
 
 
11.5 
Issuance of Class A common stock under employee stock purchase plan (in shares)
 
 
 
 
675,000 
 
 
 
 
 
 
Distributions to holders of LLC Units
 
 
 
 
 
 
 
 
 
(5.6)
(5.6)
Other
 
 
 
 
 
 
 
 
3.2 
 
3.2 
Stockholders' and Members' Equity at Dec. 31, 2015
681.0 
 
 
0 
0.1 
0.1 
454.6 
(32.2)
3.2 
255.2 
681.0 
Common stock outstanding (in shares) at Dec. 31, 2015
157,481,000 
67,083,000 
90,398,000 
 
67,083,000 
90,398,000 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
Net loss
(21.9)
 
 
 
 
 
 
(16.5)
 
(5.4)
(21.9)
Equity-based compensation expense
 
 
 
 
 
 
56.8 
 
 
 
56.8 
Stock option exercises (in shares)
 
 
 
 
9,187,000 
 
 
 
 
 
 
Stock option exercises
 
 
 
 
 
 
114.8 
 
 
(59.8)
55.0 
Liability pursuant to the tax receivable agreements resulting from the Reorganization Transactions
 
 
 
 
 
 
(38.5)
 
 
 
(38.5)
Effect of exchanges of LLC Units
 
 
 
 
 
 
15.3 
 
 
(15.3)
0 
Effect of exchanges of LLC Units (in shares)
 
 
 
 
11,844,000 
(11,844,000)
 
 
 
 
 
Issuance of Class A common stock under employee stock purchase plan
 
 
 
 
 
 
5.0 
 
 
 
5.0 
Issuance of Class A common stock under employee stock purchase plan (in shares)
 
 
 
 
202,000 
 
 
 
 
 
 
Distributions to holders of LLC Units
 
 
 
 
 
 
 
 
 
(23.0)
(23.0)
Other (in shares)
 
 
 
 
242,000 
 
 
 
 
 
 
Other
 
 
 
 
 
 
0.3 
 
(0.5)
 
(0.2)
Stockholders' and Members' Equity at Dec. 31, 2016
$ 714.2 
 
 
$ 0 
$ 0.1 
$ 0.1 
$ 608.3 
$ (48.7)
$ 2.7 
$ 151.7 
$ 714.2 
Common stock outstanding (in shares) at Dec. 31, 2016
167,112,000 
88,558,000 
78,554,000 
 
88,558,000 
78,554,000 
 
 
 
 
 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Statement of Cash Flows [Abstract]
 
 
 
Net loss
$ (21.9)
$ (120.4)
$ (143.3)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
Depreciation and amortization
160.1 
158.8 
152.8 
Equity-based compensation
56.8 
40.4 
30.1 
Amortization of original issue discount and debt issuance costs
7.4 
7.9 
9.1 
Loss on debt extinguishment
0 
21.4 
0 
Deferred taxes
(3.8)
(3.0)
(6.8)
Tax receivable agreements liability adjustment
12.5 
0 
0 
Domain portfolio cost of revenue
10.7 
3.7 
0 
Other
2.4 
0.1 
1.3 
Changes in operating assets and liabilities, net of amounts acquired:
 
 
 
Registry deposits
(1.9)
(0.9)
(2.7)
Prepaid domain name registry fees
(22.8)
(30.7)
(21.6)
Accounts payable
19.6 
13.5 
8.5 
Accrued expenses and other current liabilities
10.0 
9.5 
(22.3)
Deferred revenue
160.8 
165.6 
166.4 
Other operating assets and liabilities
(3.4)
(6.7)
9.1 
Net cash provided by operating activities
386.5 
259.2 
180.6 
Investing activities
 
 
 
Purchases of short-term investments
(10.5)
(7.3)
(9.0)
Maturities of short-term investments
8.4 
5.8 
9.2 
Business acquisitions, net of cash acquired
(118.5)
(64.7)
(40.7)
Purchases of intangible assets
(1.3)
(23.5)
0 
Purchases of property and equipment, excluding improvements
(54.3)
(45.3)
(51.9)
Purchases of leasehold and building improvements
(7.2)
(10.5)
(16.0)
Other investing activities, net
0 
1.1 
1.1 
Net cash used in investing activities
(183.4)
(144.4)
(107.3)
Financing activities
 
 
 
Class A common stock sold in initial public offering, net of offering costs
0 
482.4 
(1.8)
Option and warrant exercises
55.0 
12.7 
2.4 
Class A common stock issued under employee stock purchase plan
5.0 
11.5 
0 
Term loan
0 
0 
263.8 
Revolving credit loan
0 
0 
75.0 
Distributions to holders of LLC Units
(18.8)
(0.8)
(349.0)
Repayment of senior note
0 
(300.0)
0 
Repayment of revolving credit loan
0 
(75.0)
0 
Repayment of term loan
(11.0)
(11.0)
(7.6)
Financing-related costs
0 
(13.5)
(8.4)
Capital leases and other financing obligations
(15.1)
(11.9)
(4.1)
Net cash provided by (used in) financing activities
15.1 
94.4 
(29.7)
Effect of exchange rate changes on cash and cash equivalents
(0.1)
(0.2)
0 
Net increase in cash and cash equivalents
218.1 
209.0 
43.6 
Cash and cash equivalents, beginning of period
348.0 
139.0 
95.4 
Cash and cash equivalents, end of period
566.1 
348.0 
139.0 
Cash paid during the period for:
 
 
 
Interest on long-term debt
46.5 
59.1 
75.4 
Income taxes, net of refunds received
4.0 
2.3 
2.3 
Supplemental information for non-cash investing and financing activities:
 
 
 
Fair value of contingent consideration in connection with business acquisitions
5.6 
0.9 
2.3 
Accrued capital expenditures, excluding improvements, at period end
11.8 
4.9 
5.8 
Accrued capital expenditures, leasehold and building improvements, at period end
1.3 
0.1 
0.4 
Property and equipment acquired under capital leases
7.1 
11.1 
16.6 
Building acquired under lease financing obligation
$ 0 
$ 0 
$ 18.1 
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
We were incorporated on May 28, 2014 for the purpose of facilitating an initial public offering (IPO) and other related organizational transactions, completed on April 7, 2015 as discussed in Note 5, in order to operate and control all of the business and affairs of Desert Newco, LLC (Desert Newco). As sole managing member, we have all voting power in, and control the management of, Desert Newco. As a result, we consolidate Desert Newco's financial results and report a non-controlling interest representing the economic interest held by the other members of Desert Newco. We owned approximately 53% of Desert Newco's outstanding limited liability company units (LLC Units) as of December 31, 2016.
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.
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.
A consolidated statement of comprehensive income (loss) is not presented because we had no material components of other comprehensive income (loss) during any of the periods presented.
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 recognition, measurement and valuation of current and deferred income taxes;
•
the recognition and measurement of amounts payable under tax receivable agreements (TRAs);
•
the recognition and measurement of amounts payable 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
Our chief operating decision maker function is 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 $15.5 million and $12.2 million at December 31, 2016 and 2015, respectively.
Short-Term Investments
Our short-term investments consist of certificates of deposit and time deposits with an original maturity in excess of 90 days, 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,
 
 
2016
 
2015
Computer equipment
 
3 years
 
$
283.3

 
$
248.7

Software
 
3 years
 
27.3

 
28.5

Land
 
Indefinite
 
9.0

 
9.0

Buildings, including improvements
 
2-25 years
 
123.1

 
112.8

Building acquired under lease financing obligation
 
40 years
 
18.1

 
18.1

Leasehold improvements
 
Lesser of useful life or remaining lease term
 
36.1

 
34.1

Other
 
1-7 years
 
12.1

 
9.8

Total property and equipment
 
 
 
509.0

 
461.0

Less accumulated depreciation and amortization
 
 
 
(278.0
)
 
(236.0
)
Property and equipment, net
 
 
 
$
231.0

 
$
225.0


The gross carrying amount of property and equipment includes $34.8 million and $31.7 million of computer equipment and software under capital leases as of December 31, 2016 and 2015, respectively. The accumulated depreciation of the leased computer equipment was $23.8 million and $16.1 million as of December 31, 2016 and 2015, respectively.
Depreciation and amortization expense related to property and equipment, including amounts related to assets under capital leases, was $69.9 million, $61.3 million and $55.6 million during 2016, 2015 and 2014, 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 our goodwill or indefinite-lived trade names and branding 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 two-step 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
3-5 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 enter into foreign exchange forward contracts with financial institutions to hedge certain forecasted sales transactions denominated in currencies other than the United States (U.S.) dollar. We designate these forward contracts as cash flow hedges, which are recognized as either assets or liabilities at fair value. We do not hold or issue derivative instruments for speculative or trading purposes. At December 31, 2016 and 2015, the total notional amount of such contracts was $0 and $104.6 million, respectively. In January 2017, we entered into foreign exchange forward contracts having a total notional amount of $108.8 million.
We reflect unrealized gains or losses on the effective portion of a cash flow hedge as a component of accumulated other comprehensive income. Gains and losses, once realized, are recorded as a component of accumulated other comprehensive income and are amortized to revenue over the same period in which the underlying hedged amounts are recognized. Any ineffective portion of gains or losses are recorded as other income (expense), net and were immaterial during all periods presented. Each period, we evaluate the effectiveness of each of our hedges, and all hedges were determined to be effective.
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 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 $(4.6) million, $(3.5) million and $(3.0) million during 2016, 2015 and 2014, respectively.
The functional currency of certain of our foreign subsidiaries is their respective local currency. For these subsidiaries, 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 accumulated other comprehensive income. Such gains and losses were not material during any of the periods presented.
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.
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 consist 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, Secure Sockets Layer (SSL) certificates and other cloud-based products. Each of these products has stand-alone value and are 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.
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, an online shopping cart, search engine optimization and SSL certificates for encrypting data between the online browser and the certificate owner's server. 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 email accounts, online calendar, online data storage, third-party productivity applications, email marketing and enrollment fees paid by our resellers. 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)
Substantially all cost of revenue relates to domain registration costs. Cost of revenue also includes payment processing fees, reseller commissions, software licensing fees directly related to products sold, professional website development personnel costs and costs associated with sales from our domain portfolio.
Technology and Development
Technology and development 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, systems, storage and telecommunications infrastructure supporting those products (excluding depreciation expense). Technology and development expenses also include third-party development costs, localization costs incurred to translate products for international markets and technology licensing and support and maintenance costs.
Marketing and Advertising
Marketing and advertising expenses primarily consist of online traffic generation costs, television and radio advertising, spokesperson and event sponsorships, personnel costs associated with our marketing and public relations functions 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 $194.0 million, $177.6 million and $139.4 million during 2016, 2015 and 2014, respectively.
Customer Care
Customer care expenses primarily consist of personnel costs associated with our customer consultation and care team. Customer care expenses also include third-party customer care center operating costs.
General and Administrative
General and administrative expenses primarily consist of personnel and related overhead costs for our executive leadership, accounting, finance, legal and human resource functions. General and administrative expenses also include professional service fees for audit, legal, tax, accounting and acquisitions, rent for all office space, insurance 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. 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,
 
2016
 
2015
 
2014
Expected term (in years)
6.1

 
6.3

 
6.5

Expected volatility
37.7
%
 
39.1
%
 
42.2
%
Expected dividend yield
—

 
—

 
—

Risk-free interest rate
1.4
%
 
1.7
%
 
1.9
%

Historical data is used to estimate future award forfeitures.
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.
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 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) NOLs 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 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 TRA.
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 consolidated statement of operations.
Unutilized depreciation and amortization deductions related to the OBAs and the anticipated basis adjustments are converted to net operating loss (NOL) carryforwards. If the utilization of NOL carryforwards 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, as follows:
 
December 31, 2016
 
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

Total assets measured and recorded at fair value
$
6.6

 
$
185.9

 
$
—

 
$
192.5

 
 
(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.
 
December 31, 2015
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents:
 
 
 
 
 
 
 
Reverse repurchase agreements(1)
$
—

 
$
40.0

 
$
—

 
$
40.0

Short-term investments:
 
 
 
 
 
 
 
Certificates of deposit
4.5

 
—

 
—

 
4.5

Total assets measured and recorded at fair value
$
4.5

 
$
40.0

 
$
—

 
$
44.5

 
 
(1)
Reverse repurchase agreements include a $40.0 million repurchase agreement with Wells Fargo in overnight sweeps.
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, Virginia, New York, Singapore and The Netherlands. 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 recently 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.
The new standard permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The new standard is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. We do not plan to early adopt, and accordingly, will adopt the new standard effective January 1, 2018.
We have completed our initial assessment of the new standard and are in the process of further evaluating certain customer arrangements within each of our revenue streams to quantify potential impacts on the amount and timing of recognition for each performance obligation. Although we are still evaluating the potential impacts, we do not currently anticipate any changes to have a material impact. We currently plan to adopt the standard under the modified retrospective method. However, our final determination will depend on the results of our final assessment, which is expected to be completed by the third quarter of 2017.
Other Accounting Standards
In August 2014, the FASB issued new guidance regarding disclosure of uncertainties about an entity's ability to continue as a going concern. This guidance defines management's responsibility to assess an entity's ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. Our adoption of this guidance in 2016 did not have an impact on our consolidated financial statements.
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. Accordingly, a lessee will recognize a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. Both the asset and liability will initially be measured at the present value of the future minimum lease payments over the lease term. Subsequent measurement, including the presentation of expenses and cash flows, will depend on the classification of the lease as either a finance or an operating lease. Initial costs directly attributable to negotiating and arranging the lease will be included in the asset. 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. Lessees will also be required to provide additional qualitative and quantitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. These disclosures are intended to supplement the amounts recorded in the financial statements and provide additional information about the nature of an organization's leasing activities. The new standard is effective for us 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. The transition guidance also provides specific guidance for sale and leaseback transactions, build-to-suit leases and amounts previously recognized in accordance with the business combinations guidance for leases. We are currently evaluating the expected impact of this new standard.
In March 2016, the FASB issued new guidance changing the accounting for certain aspects of share-based payments to employees. The guidance allows for a policy election to account for forfeitures as they occur rather than on an estimated basis and allows for an employer to repurchase more of an employee's shares for tax withholding purposes without triggering liability accounting. In addition, the guidance requires recognition of the income tax effects of awards in the income statement when the awards vest or are settled, thus eliminating additional paid-in capital pools. We will continue to account for forfeitures on an estimated basis, and accordingly, our adoption of this guidance on January 1, 2017 is not expected to have a material impact.
In June 2016, the FASB issued new guidance for the accounting for credit losses on instruments that will require us 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 August 2016, the FASB issued new guidance clarifying the treatment of several cash flow categories. In addition, the new guidance clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. Our adoption of this guidance in the fourth quarter of 2016 did not have a material impact.
In October 2016, the FASB issued new guidance requiring an entity to recognize the income tax consequences of intra-entity asset transfers, other than inventory, when the transfer occurs. Our adoption of this guidance on January 1, 2017 is not expected to have a material impact.
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. This new guidance is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. Our adoption of this guidance in 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. The guidance provides a screen for an entity to use to determine when a set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the guidance requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. The guidance also removes the evaluation of whether a market participant could replace missing elements. This new guidance is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the timing of our adoption and the expected impact of this new guidance.
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.
Business Acquisitions
Business Acquisitions
Business Acquisitions
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. We recognized a liability of $5.6 million representing the estimated fair value of the contingent consideration at the acquisition date. Proforma financial information is not presented because these acquisitions are not material to our results of operations, either individually or in the aggregate.
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. Identified finite-lived intangible assets, which were valued using either income- or cost-based approaches, primarily include customer-related intangible assets and developed technology. The acquired finite-lived intangible assets have a total weighted-average amortization period of 5.5 years.
2015 Acquisitions
During the year ended 2015, we completed four acquisitions for cash of $64.7 million and additional immaterial contingent earn-out payments subject to the achievement of certain revenue targets. 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. Proforma financial information is not presented because these acquisitions are not material to our results of operations, either individually or in the aggregate.
2014 Acquisition
During 2014, we completed an acquisition for cash of $42.0 million and additional immaterial contingent earn-out payments subject to the achievement of specified milestones. The purchase price was allocated based upon our assessment of acquisition-date fair values with $33.6 million attributed to tax-deductible goodwill, $10.8 million to identified finite-lived intangible assets and $2.4 million of net liabilities assumed. Proforma financial information is not presented because this acquisition is not material to our results of operations.
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, 2014
$
1,661.2

2015 acquisitions
2.2

Balance at December 31, 2015
1,663.4

2016 acquisitions
55.0

Balance at December 31, 2016
$
1,718.4


Intangible assets, net are summarized as follows:
 
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

 
December 31, 2015
 
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
61.2

 
n/a

 
$
(3.7
)
 
57.5

Finite-lived intangible assets:
 
 
 
 
 
 
 
Customer-related
361.2

 
$
(196.8
)
 
 n/a

 
164.4

Developed technology
210.1

 
(148.0
)
 
 n/a

 
62.1

Trade names
11.2

 
(5.2
)
 
 n/a

 
6.0

Other
1.1

 
(0.8
)
 
 n/a

 
0.3

 
$
1,089.8

 
$
(350.8
)
 
$
(3.7
)
 
$
735.3


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 being 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 98 months, 65 months and 56 months, respectively. Amortization expense was $90.2 million, $97.5 million and $97.2 million during 2016, 2015 and 2014, respectively. The weighted-average remaining amortization period for amortizable intangible assets was 44 months as of December 31, 2016.
Based on the balance of finite-lived intangible assets at December 31, 2016, expected future amortization expense is as follows:
Year Ending December 31:
 
2017
$
58.3

2018
50.1

2019
30.9

2020
23.5

2021
2.6

Thereafter
—

 
$
165.4

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 $491.8 million in proceeds, net of underwriting discounts and commissions, which we used to purchase newly-issued LLC Units from Desert Newco at a price per unit equal to the IPO price.
In connection with the IPO, we completed a series of organizational transactions (the Reorganization Transactions), including:
•
the amendment and restatement of Desert Newco's limited liability company agreement (the New LLC 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 (the Continuing LLC 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 38,826 shares of Class A common stock as consideration (the Investor Corp Mergers).
We incurred $11.2 million of legal, accounting, printing and other professional fees related to the IPO, including $1.3 million and $0.1 million paid on behalf of the Sponsors and Bob Parsons, respectively. These amounts were charged against additional paid-in capital upon completion of the IPO.
We primarily used the net IPO proceeds to make certain payments to the Sponsors and Bob Parsons as described in Note 16 and to repay the senior note payable to YAM and all amounts drawn on our revolving credit loan as described in Note 9.
Restatement of Certificate of Incorporation
Our Board approved an amended and restated certificate of incorporation (the Restated Certificate of Incorporation), which became effective on March 31, 2015 immediately prior to the effectiveness of the Registration Statement on Form S-1 (the Registration Statement) filed in connection with our IPO. The 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 owned by the Continuing LLC Owners and the number of LLC Units owned by the Continuing LLC 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 Continuing LLC Owner, exchange LLC Units for shares of Class A common stock.
Desert Newco Recapitalization
Desert Newco's board of directors adopted the New LLC Agreement, which became effective on March 31, 2015 immediately following the effectiveness of the Registration Statement. The New LLC Agreement, among other things, appointed us as Desert Newco's sole managing member and reclassified all outstanding LLC Units as non-voting units. The New LLC Agreement also revised the tax rate applicable to the tax distributions Desert Newco is required to make to the holders of LLC Units, including us, as described in Note 16.
Investor Corp Mergers
We acquired the Reorganization Parties, to 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. Upon consummation of the Investor Corp Mergers, we recognized the acquired LLC Units at carrying value, as these transactions are considered to be between entities under common control.
We also acquired the tax attributes of the Reorganization Parties, which were recorded generally as DTAs at the time of the Investor Corp Mergers. These attributes include NOLs, tax credit carryforwards and OBAs arising from the original acquisition of LLC Units by the Reorganization Parties, as described in Note 12.
Secondary Offering
In April 2016, we completed a secondary offering in which certain stockholders, including the Sponsors, YAM and certain of our executive officers, sold an aggregate of 18,975 shares of our Class A common stock at a public offering price of $30.25 per share. We received $6.3 million in proceeds from the exercise of stock options in connection with the offering, but did not receive any proceeds from the shares sold in the offering. The offering also included the exchange of 10,382 LLC Units (together with the corresponding shares of Class B common stock) for Class A common stock by certain selling stockholders, which resulted in an $8.8 million increase in additional paid-in capital, with an offsetting reduction in non-controlling interests, and a material increase to the liability under the TRAs. See Note 13.
Distribution to Holders of LLC Units
In May 2014, Desert Newco's board of directors authorized a $350.0 million distribution to holders of LLC Units and to holders of certain assumed options, including immaterial amounts paid in 2015 and 2016 upon the vesting of certain restricted units. Holders of other equity-based awards received an approximate $2.60 per unit adjustment to the exercise price of their awards, in accordance with the antidilution provisions of the Desert Newco, LLC 2011 Unit Incentive Plan (the 2011 Plan), which is equivalent to the per unit amount of the cash distribution. These equitable adjustments preserved the intrinsic value among all equity-based awards. The distribution was considered an equity restructuring, and accordingly, modification accounting was applied. We evaluated whether any additional equity-based compensation expense would need to be recognized, to the extent the fair value of any modified awards plus the cash to be received (if applicable) exceeded the fair value of the original awards before the modification. No material additional equity-based compensation expense was required as a result of the modification.
The equity restructuring was in accordance with a pre-existing contractual antidilution provision; therefore, the cash paid did not impact our earnings per share computation and the changes to the options not receiving a cash award were accounted for by increasing the denominator in our earnings per share computation using the treasury stock method.
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 the 2011 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, 2016, an additional 6,299 shares were reserved for issuance pursuant to the 2015 Plan. As of December 31, 2016, 12,579 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, 2016, an additional 1,000 shares were reserved for issuance pursuant to the ESPP. As of December 31, 2016, 2,123 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 coinciding with our fiscal year. 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 compensation 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 compensation expense is recognized. If the award is deemed probable of being earned, compensation 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, 2013
 
25,805

 
 
 
6.42

 
 
 
 
Granted
 
4,787

 
7.83

 
16.70

 
 
 
 
Exercised
 
(1,760
)
 
 
 
4.26

 
 
 
20.3

Forfeited
 
(2,180
)
 
 
 
8.14

 
 
 
 
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

 
6.8
 
389.2

Vested at December 31, 2016
 
9,034

 
 
 
9.25

 
5.8
 
232.2


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, 2013
 
—

 
 
Granted
 
87

 
16.11

Vested
 
—

 
 
Forfeited
 
—

 
 
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

 
 

During 2016, 2015 and 2014, we recognized $56.8 million, $40.4 million, and $30.1 million of equity-based compensation expense, respectively, including $3.1 million, $3.6 million and $3.7 million, respectively, of additional expense resulting from the modification of certain awards. Included in these amounts are $4.1 million, $4.7 million and $0 of equity-based compensation expense related to the ESPP for 2016, 2015 and 2014, respectively.
At December 31, 2016, total unrecognized compensation expense related to non-vested stock options and RSUs was $39.1 million and $50.0 million, respectively, with expected remaining weighted-average recognition periods of approximately 1.9 years and 2.8 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 relating to performance awards, and will reverse any previously recognized expense.
In May 2016, we determined our "Up-C" structure was not eligible to offer a "tax-qualified" plan and terminated the then-current ESPP offering period. In connection with the offering period termination, we granted fully-vested RSUs to employees who were participating in the ESPP prior to the termination date, resulting in $4.4 million of additional equity-based compensation expense during 2016. Other expenses related to this termination were not material. We started a "non-qualified" ESPP offering period in July 2016.
The fair value of each ESPP share is estimated on the first day of each offering period using the Black-Scholes option pricing model, and is recognized as compensation expense on a straight-line basis over the term during which it is outstanding. As of December 31, 2016, $1.9 million has been withheld on behalf of employees for future purchases under the ESPP, which is included in accrued expenses and other current liabilities. At December 31, 2016, total unrecognized compensation expense related to ESPP shares was $2.0 million, which will be recognized during the first half of 2017.
Deferred Revenue
Deferred Revenue
Deferred Revenue
Deferred revenue consisted of the following:
 
December 31,
 
2016
 
2015
Current:
 
 
 
Domains
$
531.2

 
$
497.2

Hosting and presence
370.8

 
330.8

Business applications
141.5

 
109.7

 
$
1,043.5

 
$
937.7

Noncurrent:
 
 
 
Domains
$
311.1

 
$
288.5

Hosting and presence
163.4

 
149.7

Business applications
58.2

 
40.3

 
$
532.7

 
$
478.5

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,
 
2016
 
2015
Accrued payroll and employee benefits
$
74.0

 
$
64.7

Accrued acquisition-related expenses and acquisition consideration payable
13.4

 
2.1

Accrued marketing and advertising expenses
9.8

 
10.7

Current portion of capital lease obligation
6.9

 
12.0

Transaction-based taxes payable
6.8

 
4.3

Accrued indirect tax liabilities
6.1

 
7.1

Accrued other
26.0

 
26.1

 
$
143.0

 
$
127.0

Long-Term Debt
Long-Term Debt
Long-Term Debt
Long-term debt consists of the following:
 
December 31,
 
2016
 
2015
Term Loan due May 13, 2021 (effective interest rate of 4.9% at December 31, 2016 and 5.1% at December 31, 2015)
$
1,072.5

 
$
1,083.5

Revolving Credit Loan due May 13, 2019
—

 
—

Total
1,072.5

 
1,083.5

Less unamortized original issue discounts on long-term debt(1)
(30.5
)
 
(36.8
)
Less unamortized debt issuance costs(1)
(2.3
)
 
(2.7
)
Less current portion of long-term debt
(4.0
)
 
(4.2
)
 
$
1,035.7

 
$
1,039.8

 
 
(1)
Original issue discounts and debt issuance costs are amortized to interest expense over the life of the related debt instruments using the effective interest method.
Term Loan and Revolving Credit Loan
Our amended and restated secured credit agreement (the Credit Facility) consists of a $1,100.0 million original balance term loan maturing on May 13, 2021 (the Term Loan) and an available $150.0 million revolving credit loan maturing on May 13, 2019 (the Revolving Credit Loan). Borrowings under the Credit Facility bear interest at a rate equal to, at our option, either (a) LIBOR (not less than 1.0% for the Term Loan only) plus 3.25% per annum or (b) 2.25% 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 to paying interest on the outstanding principal under the Term Loan, we are required to pay a commitment fee of 0.375% per annum for any unutilized commitments under the Revolving Credit Loan.
The Credit Facility requires us 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.
The Credit Facility contains certain covenants, including, among other things, covenants limiting our ability to incur additional indebtedness, sell assets, incur additional liens, make certain fundamental changes, pay distributions and make certain investments. Additionally, the Credit Facility also requires us to maintain certain financial ratios. All obligations under the Credit Facility are unconditionally guaranteed by the assets of substantially all of our subsidiaries. At December 31, 2016, we were not in violation of any covenants of the Credit Facility.
In April 2015, we made a payment of $75.0 million to repay all amounts drawn on the Revolving Credit Loan. At December 31, 2016, we have $150.0 million available for borrowing under the Revolving Credit Loan.
The estimated fair value of the Term Loan was $1,079.2 million at December 31, 2016 based on observable market prices for this loan, which is traded in a less active market and is therefore classified as a Level 2 fair value measurement.
On February 15, 2017, we refinanced the Credit Facility. See Note 18.
Senior Note
On December 16, 2011, we issued a 9% senior note to YAM. In April 2015, we made a payment to YAM totaling $316.0 million to repay the 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, $7.1 million of unamortized original issue discount and $0.8 million of 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 discounts and debt issuance costs, due on long-term debt as of December 31, 2016 are as follows:
Year Ending December 31:
 
2017
$
11.0

2018
11.0

2019
11.0

2020
11.0

2021
1,028.5

Thereafter
—

 
$
1,072.5

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, 2016, the lease financing obligation totaled $19.8 million, of which $19.6 million is included in other long-term liabilities.
Future minimum payments under this lease as of December 31, 2016 are as follows:
Year Ending December 31:
 
2017
$
3.2

2018
3.2

2019
3.2

2020
3.4

2021
3.6

Thereafter
12.2

 
$
28.8


Leases
We lease office space, data center space (including commitments for specified levels of power), vehicles and certain computer equipment under operating and capital leases expiring at various dates through September 2026. Total operating lease rent expense was $43.3 million, $42.2 million and $39.3 million during 2016, 2015 and 2014, respectively.
Future minimum lease obligations under capital leases and non-cancelable operating leases with initial terms in excess of one year at December 31, 2016 are as follows:
Year Ending December 31:
 
Capital
Leases
 
Operating
Leases
2017
 
$
6.8

 
$
28.6

2018
 
2.9

 
21.0

2019
 
1.3

 
11.0

2020
 
—

 
5.1

2021
 
—

 
4.3

Thereafter
 
—

 
14.9

Total minimum payments
 
11.0

 
$
84.9

Less: amount representing interest
 
(0.4
)
 
 
Capital lease obligation
 
$
10.6

 
 

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, 2016 are as follows:
Year Ending December 31:
 
2017
$
9.7

2018
4.0

2019
2.6

2020
1.4

Thereafter
—

Total minimum payments
$
17.7


Litigation
From time-to-time, we are a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims, 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 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 to our consolidated financial statements. Regardless of the outcome, 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, 2016 and 2015.
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, 2016 and 2015.
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, 2016 and 2015, our accrual for estimated indirect tax liabilities was $6.1 million and $7.1 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 reserves are reasonable, the final determination of indirect tax audits and any related litigation could be materially different than the amounts established for indirect tax contingencies.
Defined Contribution Plan
Defined Contribution Plan
Defined Contribution Plan
We maintain defined contribution 401(k) plans covering all eligible 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 $8.5 million, $8.6 million and $7.7 million during 2016, 2015 and 2014, respectively.
Income Taxes
Income Taxes
Income Taxes
We are required to file federal and applicable state corporate income tax returns and recognize income taxes on our pre-tax income. Desert Newco has been and will continue to be treated as a partnership for U.S. 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 members, of which we are one, are liable for federal and state income taxes based on their taxable income. Desert Newco is liable for income taxes in certain foreign jurisdictions, in those states not recognizing its pass-through status and for certain subsidiaries not taxed as pass-through entities. We have acquired the outstanding stock of various entities taxed as corporations, which are now owned 100% by us or our subsidiaries and are treated as an independent consolidated group for federal income tax purposes. Where required or allowed, these subsidiaries also file as a consolidated group for state income tax purposes. We anticipate this structure to remain in existence for the foreseeable future.
Our tax provision includes federal, state and foreign income taxes. The domestic and foreign components of our loss before income taxes were as follows:
 
Year Ended December 31,
 
2016
 
2015
 
2014
U.S. loss before tax
$
(28.5
)
 
$
(121.2
)
 
$
(149.0
)
Foreign income before tax
7.0

 
0.6

 
2.9

Loss before income taxes
$
(21.5
)
 
$
(120.6
)
 
$
(146.1
)
Our (provision) benefit for income taxes was as follows:
 
Year Ended December 31,
 
2016
 
2015
 
2014
Current:
 
 
 
 
 
Federal
$
(0.3
)
 
$
(0.3
)
 
$
(0.1
)
State
(0.3
)
 
(0.1
)
 
(0.3
)
Foreign
(3.5
)
 
(2.4
)
 
(3.6
)
 
(4.1
)
 
(2.8
)
 
(4.0
)
Deferred:
 
 
 
 
 
Federal
3.1

 
2.4

 
4.9

State
0.3

 
0.4

 
1.7

Foreign
0.3

 
0.2

 
0.2

 
3.7

 
3.0

 
6.8

(Provision) benefit for income taxes
$
(0.4
)
 
$
0.2

 
$
2.8


A reconciliation of the statutory federal income tax rate to our effective income tax rate was as follows:
 
Year Ended December 31,
 
2016
 
2015
 
2014
Expected benefit at federal statutory tax rate (35% for 2016 and 2015; 34% for 2014)
$
7.5

 
$
42.2

 
$
49.7

Effect of rates due to pass-through entities
(0.1
)
 
2.8

 
(45.8
)
Income of non-controlling interest
(1.8
)
 
(15.6
)
 
—

Foreign earnings
(0.9
)
 
(2.2
)
 
(2.5
)
TRA liability adjustment
(3.8
)
 
—

 
—

State taxes, net of federal benefit
0.1

 
5.4

 
1.5

Other
0.1

 
(0.7
)
 
(0.1
)
Valuation allowance
(1.5
)
 
(31.7
)
 
—

(Provision) benefit for income taxes
$
(0.4
)
 
$
0.2

 
$
2.8


The components of our net DTAs were as follows:
 
December 31,
 
2016
 
2015
DTAs:
 
 
 
Net operating losses
$
167.4

 
$
131.9

Credits and incentives
2.7

 
2.5

Investment in Desert Newco
188.3

 
4.7

Deferred interest
11.2

 
8.2

Other
2.3

 
1.6

Valuation allowance
(358.2
)
 
(135.1
)
Total DTAs
13.7

 
13.8

DTLs:
 
 
 
Identified intangible assets
(8.7
)
 
(8.4
)
Total DTLs
(8.7
)
 
(8.4
)
Net DTAs
$
5.0

 
$
5.4


As a result of the Reorganization 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 the exchange of LLC Units in the April 2016 secondary offering discussed in Note 5, the exchange of additional LLC Units and stock option exercises. We also recorded additional DTAs of $36.7 million in 2016 and $30.1 million in 2015 as a result of our portion of Desert Newco's NOLs and credit carryforwards, and of $3.0 million in 2016 and $8.2 million in 2015 for future interest deductions as a result of the liability under the TRAs. Based on our limited operating history and future projections of taxable income, we believe there is significant uncertainty as to when we will be able to utilize these NOLs, credit carryforwards and other DTAs. Therefore, we have recorded a valuation allowance against these DTAs because we have concluded it is more-likely-than-not they will not be realized.
As of December 31, 2016, we have 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
$
424.6

 
$
396.2

State NOLs, credits and incentives
500.9

 
480.2

Foreign NOLs
2.4

 
1.1

Total NOLs, credits and incentives
$
927.9


$
877.5


As of December 31, 2016, we have determined undistributed net earnings of $6.3 million related to certain subsidiaries are indefinitely reinvested in operations outside the U.S., which could become subject to additional taxes if remitted as dividends or loaned to a U.S. affiliate. The resulting U.S. income tax liabilities could be offset, in whole or in part, by credits allowable for taxes paid to foreign jurisdictions. The actual tax costs will depend on the income tax laws and circumstances at the time of the realization events.
We have filed income tax returns for years through 2015. 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 a liability related to uncertain income tax positions is not required. Although we believe the amounts reflected in our tax returns substantially comply with applicable 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.
Loss Per Share
Loss Per Share
Loss Per Share
Basic loss per share is computed by dividing net loss attributable to GoDaddy Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted loss per share is computed giving effect to all potentially dilutive shares, including outstanding options, RSUs, warrants and ESPP 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 Reorganization 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 interest 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 loss per share is as follows:
 
Year Ended December 31,
 
2016
 
2015
 
2014
Numerator:
 
 
 
 
 
Net loss
$
(21.9
)
 
$
(120.4
)
 
$
(143.3
)
Less: net loss attributable to non-controlling interests
(5.4
)
 
(73.0
)
 
(100.1
)
Net loss attributable to GoDaddy Inc.
$
(16.5
)
 
$
(47.4
)
 
$
(43.2
)
Denominator:
 
 
 
 
 
Weighted-average shares of Class A common stock outstanding—basic
79,835

 
58,676

 
38,826

Effect of dilutive securities
—

 
—

 
—

Weighted-average shares of Class A common stock outstanding—diluted
79,835

 
58,676

 
38,826

 
 
 
 
 
 
Net loss per share of Class A common stock—basic and diluted
$
(0.21
)
 
$
(0.81
)
 
$
(1.11
)

The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted loss per share because the effect of including such potentially dilutive shares would have been antidilutive:
 
Year Ended December 31,
 
2016
 
2015
 
2014
Options and vesting LLC Units
13,517

 
15,159

 
10,406

RSUs, warrants and ESPP shares
363

 
139

 
113

 
13,880

 
15,298

 
10,519


Shares of Class B common stock do not share in our earnings and are not participating securities. Accordingly, separate presentation of net 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,
 
2016
 
2015
Class A common stock
88,558

 
67,083

Class B common stock
78,554

 
90,398

 
167,112

 
157,481

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,
 
2016
 
2015
 
2014
U.S.
$
1,350.1

 
$
1,192.6

 
$
1,038.8

International
497.8

 
414.7

 
348.5

 
$
1,847.9

 
$
1,607.3

 
$
1,387.3


No individual international country represented more than 10% of total revenue in any period presented. Substantially all of our assets are located in the U.S.
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 the Reorganization Parties, which are allowed prior to the utilization of any NOL or tax credit carryforwards against income taxes.
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 as a result of the completion of the April 2016 secondary offering discussed in Note 5 and 2) a $12.5 million charge to our consolidated statement 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.
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. 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. 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. 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 $169.8 million as a result of basis adjustments under Code Section 754 and up to an additional $148.0 million related to the utilization of NOL and credit carryforwards, which will be recorded through charges to our consolidated statement 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 consolidated statement of operations.
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. These tax distributions are computed based on an assumed income tax rate equal to the sum of (i) the maximum marginal federal income tax rate applicable to an individual and (ii) 7%. The assumed income tax rate currently totals 46.6%, which will increase to 50.4% in certain cases when the tax on net investment income is applicable.
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 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 and 2014 were not material.
As of December 31, 2016, we have accrued $10.0 million for estimated tax distributions to Desert Newco's owners, excluding us, which is included in accrued expenses and other current liabilities. Following the finalization of 2016 taxable income allocated to each Desert Newco owner, these distributions will be paid by April 2017 to the Sponsors, Bob Parsons and other Desert Newco owners based on their ownership as of the payment dates.
Sponsors
Amounts paid to affiliates of KKR related to their participation as lenders under our Credit Facility were as follows:
 
Year Ended December 31,
 
2016
 
2015
 
2014
Principal
$
0.1

 
$
5.3

 
$
0.2

Interest and other fees
0.8

 
1.4

 
2.2

As of December 31, 2016 and 2015, affiliates of KKR held $2.9 million and $28.8 million, respectively, of the outstanding principal balance of the Term Loan as participating lenders. Affiliates of KKR previously held $5.0 million of the outstanding principal balance of the Revolving Credit Loan as participating lenders, which was repaid in April 2015.
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 expenses. 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 expenses. 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 9, were as follows:
 
Year Ended December 31,
 
2016
 
2015
 
2014
Interest on the senior note
$
—

 
$
9.2

 
$
27.0


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 2016, 2015 and 2014, we paid $15.4 million, $17.5 million and $16.1 million, respectively, to Dell.
Selected Quarterly Financial Data (Unaudited)
Selected Quarterly Financial Data (Unaudited)
Selected Quarterly Financial Data (Unaudited)
The following table contains selected unaudited consolidated statement of operations information for each quarter of 2016 and 2015. 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. Our unaudited quarterly results were as follows:
 
Three Months Ended
 
Dec. 31, 2016
 
Sept. 30, 2016
 
Jun. 30, 2016
 
Mar. 31, 2016
 
Dec. 31, 2015
 
Sept. 30, 2015
 
Jun. 30, 2015
 
Mar. 31, 2015
Total revenue
$
485.9

 
$
472.1

 
$
456.2

 
$
433.7

 
$
425.4

 
$
411.1

 
$
394.5

 
$
376.3

Operating income (loss)
$
17.9

 
$
21.2

 
$
9.7

 
$
1.3

 
$
12.2

 
$
10.9

 
$
(33.6
)
 
$
(20.5
)
Net income (loss)
$
(0.8
)
 
$
8.3

 
$
(11.1
)
 
$
(18.3
)
 
$
(0.5
)
 
$
(5.2
)
 
$
(71.3
)
 
$
(43.4
)
Net income (loss) attributable to GoDaddy Inc.
$
(1.9
)
 
$
4.8

 
$
(8.9
)
 
$
(10.5
)
 
$
0.1

 
$
(2.5
)
 
$
(29.8
)
 
$
(43.4
)
Net income (loss) per share of Class A common stock—basic
$
(0.02
)
 
$
0.06

 
$
(0.11
)
 
$
(0.15
)
 
$
0.00

 
$
(0.04
)
 
$
(0.46
)
 
$
(0.34
)
Net income (loss) per share of Class A common stock—diluted
$
(0.02
)
 
$
0.05

 
$
(0.11
)
 
$
(0.15
)
 
$
0.00

 
$
(0.04
)
 
$
(0.46
)
 
$
(0.34
)
Subsequent Events
Subsequent Events
Subsequent Events
Agreement to Acquire Host Europe Holdings Limited
On December 5, 2016, we entered into an agreement to purchase all shares in Host Europe Holdings Limited (HEG) and certain loan notes issued by Host Europe Finance Co. Limited. Pursuant to the terms of the purchase agreement and subject to the conditions therein, on the closing date, we will purchase all of the outstanding shares of HEG and the related loan notes for approximately EUR 1.69 billion, including approximately EUR 605 million paid to the selling shareholders and approximately EUR 1.08 billion in assumed net debt, subject to certain specified adjustments.
Consummation of the transaction is subject to certain customary closing conditions, including obtaining all required regulatory approvals. The purchase agreement may be terminated at any time prior to the closing date by mutual written consent of the parties, and under certain other conditions, including in the event the transaction is not consummated by December 5, 2017.
We intend to finance the acquisition using the acquisition term loan discussed below and an asset sale bridge facility of up to EUR 500 million. We have received a lender commitment letter for the bridge facility, which is subject to customary conditions, including the consummation of the transaction, the accuracy of certain specified representations, the absence of a Company Material Adverse Effect (as defined in the purchase agreement) with respect to HEG, and other customary conditions. Terms of the bridge facility have not yet been finalized.
Credit Facility Refinancing
On February 15, 2017, we refinanced the Credit Facility to provide for: i) a $1,072.5 million seven-year term loan (the Refinanced Term Loan), ii) a second contingent $1,425.0 million tranche (the Acquisition Term Loan), which is intended to provide a portion of the financing for our proposed acquisition of HEG, and iii) a $150.0 million five-year revolving credit facility, which will increase to $200.0 million upon the closing of our acquisition of HEG (the Refinanced Revolving Credit Loan).
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. The Refinanced Term Loan matures on February 15, 2024 and bears interest at a rate per annum of LIBOR plus 2.50%. We used the net proceeds from the Refinanced Term Loan to repay all amounts outstanding under our Term Loan.
The Acquisition Term Loan will be issued at a 0.25% discount on the face of the note at original issue for net proceeds of $1,421.4 million in connection with the closing of our proposed acquisition of HEG. The Acquisition Term Loan will have the same maturity date and interest rate as the Refinanced Term Loan. If the closing of the acquisition has not occurred by April 3, 2017, the Acquisition Term Loan will begin to accrue interest at a rate per annum of 1.25%, and if the closing of the acquisition has not occurred by April 16, 2017, it will begin to accrue interest at a rate per annum of LIBOR plus 2.50%.
The Refinanced Revolving Credit Loan matures on February 15, 2022 and bears interest at a rate per annum of LIBOR plus a margin ranging from 2.00% to 2.50%, with the margin determined based on our first lien net leverage ratio.
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 recognition, measurement and valuation of current and deferred income taxes;
•
the recognition and measurement of amounts payable under tax receivable agreements (TRAs);
•
the recognition and measurement of amounts payable 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
Our chief operating decision maker function is 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 and time deposits with an original maturity in excess of 90 days, 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.
Property and equipment consisted of the following:
 
 
Estimated
Useful Lives
 
December 31,
 
 
2016
 
2015
Computer equipment
 
3 years
 
$
283.3

 
$
248.7

Software
 
3 years
 
27.3

 
28.5

Land
 
Indefinite
 
9.0

 
9.0

Buildings, including improvements
 
2-25 years
 
123.1

 
112.8

Building acquired under lease financing obligation
 
40 years
 
18.1

 
18.1

Leasehold improvements
 
Lesser of useful life or remaining lease term
 
36.1

 
34.1

Other
 
1-7 years
 
12.1

 
9.8

Total property and equipment
 
 
 
509.0

 
461.0

Less accumulated depreciation and amortization
 
 
 
(278.0
)
 
(236.0
)
Property and equipment, net
 
 
 
$
231.0

 
$
225.0

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 our goodwill or indefinite-lived trade names and branding 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 two-step 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
3-5 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 enter into foreign exchange forward contracts with financial institutions to hedge certain forecasted sales transactions denominated in currencies other than the United States (U.S.) dollar. We designate these forward contracts as cash flow hedges, which are recognized as either assets or liabilities at fair value. We do not hold or issue derivative instruments for speculative or trading purposes. At December 31, 2016 and 2015, the total notional amount of such contracts was $0 and $104.6 million, respectively. In January 2017, we entered into foreign exchange forward contracts having a total notional amount of $108.8 million.
We reflect unrealized gains or losses on the effective portion of a cash flow hedge as a component of accumulated other comprehensive income. Gains and losses, once realized, are recorded as a component of accumulated other comprehensive income and are amortized to revenue over the same period in which the underlying hedged amounts are recognized. Any ineffective portion of gains or losses are recorded as other income (expense), net and were immaterial during all periods presented. Each period, we evaluate the effectiveness of each of our hedges, and all hedges were determined to be effective.
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 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 $(4.6) million, $(3.5) million and $(3.0) million during 2016, 2015 and 2014, respectively.
The functional currency of certain of our foreign subsidiaries is their respective local currency. For these subsidiaries, 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 accumulated other comprehensive income. Such gains and losses were not material during any of the periods presented.
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.
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 consist 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, Secure Sockets Layer (SSL) certificates and other cloud-based products. Each of these products has stand-alone value and are 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.
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, an online shopping cart, search engine optimization and SSL certificates for encrypting data between the online browser and the certificate owner's server. 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 email accounts, online calendar, online data storage, third-party productivity applications, email marketing and enrollment fees paid by our resellers. 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 Revenues 
Cost of Revenue (excluding depreciation and amortization)
Substantially all cost of revenue relates to domain registration costs. Cost of revenue also includes payment processing fees, reseller commissions, software licensing fees directly related to products sold, professional website development personnel costs and costs associated with sales from our domain portfolio.
Technology and Development 
Technology and Development
Technology and development 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, systems, storage and telecommunications infrastructure supporting those products (excluding depreciation expense). Technology and development expenses also include third-party development costs, localization costs incurred to translate products for international markets and technology licensing and support and maintenance costs.
Marketing and Advertising, Customer Care and General and Administrative 
Marketing and Advertising
Marketing and advertising expenses primarily consist of online traffic generation costs, television and radio advertising, spokesperson and event sponsorships, personnel costs associated with our marketing and public relations functions 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 $194.0 million, $177.6 million and $139.4 million during 2016, 2015 and 2014, respectively.
Customer Care
Customer care expenses primarily consist of personnel costs associated with our customer consultation and care team. Customer care expenses also include third-party customer care center operating costs.
General and Administrative
General and administrative expenses primarily consist of personnel and related overhead costs for our executive leadership, accounting, finance, legal and human resource functions. General and administrative expenses also include professional service fees for audit, legal, tax, accounting and acquisitions, rent for all office space, insurance 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. 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,
 
2016
 
2015
 
2014
Expected term (in years)
6.1

 
6.3

 
6.5

Expected volatility
37.7
%
 
39.1
%
 
42.2
%
Expected dividend yield
—

 
—

 
—

Risk-free interest rate
1.4
%
 
1.7
%
 
1.9
%

Historical data is used to estimate future award forfeitures.
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, as follows:
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 recently 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.
The new standard permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The new standard is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. We do not plan to early adopt, and accordingly, will adopt the new standard effective January 1, 2018.
We have completed our initial assessment of the new standard and are in the process of further evaluating certain customer arrangements within each of our revenue streams to quantify potential impacts on the amount and timing of recognition for each performance obligation. Although we are still evaluating the potential impacts, we do not currently anticipate any changes to have a material impact. We currently plan to adopt the standard under the modified retrospective method. However, our final determination will depend on the results of our final assessment, which is expected to be completed by the third quarter of 2017.
Other Accounting Standards
In August 2014, the FASB issued new guidance regarding disclosure of uncertainties about an entity's ability to continue as a going concern. This guidance defines management's responsibility to assess an entity's ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. Our adoption of this guidance in 2016 did not have an impact on our consolidated financial statements.
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. Accordingly, a lessee will recognize a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. Both the asset and liability will initially be measured at the present value of the future minimum lease payments over the lease term. Subsequent measurement, including the presentation of expenses and cash flows, will depend on the classification of the lease as either a finance or an operating lease. Initial costs directly attributable to negotiating and arranging the lease will be included in the asset. 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. Lessees will also be required to provide additional qualitative and quantitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. These disclosures are intended to supplement the amounts recorded in the financial statements and provide additional information about the nature of an organization's leasing activities. The new standard is effective for us 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. The transition guidance also provides specific guidance for sale and leaseback transactions, build-to-suit leases and amounts previously recognized in accordance with the business combinations guidance for leases. We are currently evaluating the expected impact of this new standard.
In March 2016, the FASB issued new guidance changing the accounting for certain aspects of share-based payments to employees. The guidance allows for a policy election to account for forfeitures as they occur rather than on an estimated basis and allows for an employer to repurchase more of an employee's shares for tax withholding purposes without triggering liability accounting. In addition, the guidance requires recognition of the income tax effects of awards in the income statement when the awards vest or are settled, thus eliminating additional paid-in capital pools. We will continue to account for forfeitures on an estimated basis, and accordingly, our adoption of this guidance on January 1, 2017 is not expected to have a material impact.
In June 2016, the FASB issued new guidance for the accounting for credit losses on instruments that will require us 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 August 2016, the FASB issued new guidance clarifying the treatment of several cash flow categories. In addition, the new guidance clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. Our adoption of this guidance in the fourth quarter of 2016 did not have a material impact.
In October 2016, the FASB issued new guidance requiring an entity to recognize the income tax consequences of intra-entity asset transfers, other than inventory, when the transfer occurs. Our adoption of this guidance on January 1, 2017 is not expected to have a material impact.
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. This new guidance is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. Our adoption of this guidance in 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. The guidance provides a screen for an entity to use to determine when a set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the guidance requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. The guidance also removes the evaluation of whether a market participant could replace missing elements. This new guidance is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the timing of our adoption and the expected impact of this new guidance.
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.
Summary of Significant Accounting Policies (Tables)
Property, Plant and Equipment 
Property and equipment consisted of the following:
 
 
Estimated
Useful Lives
 
December 31,
 
 
2016
 
2015
Computer equipment
 
3 years
 
$
283.3

 
$
248.7

Software
 
3 years
 
27.3

 
28.5

Land
 
Indefinite
 
9.0

 
9.0

Buildings, including improvements
 
2-25 years
 
123.1

 
112.8

Building acquired under lease financing obligation
 
40 years
 
18.1

 
18.1

Leasehold improvements
 
Lesser of useful life or remaining lease term
 
36.1

 
34.1

Other
 
1-7 years
 
12.1

 
9.8

Total property and equipment
 
 
 
509.0

 
461.0

Less accumulated depreciation and amortization
 
 
 
(278.0
)
 
(236.0
)
Property and equipment, net
 
 
 
$
231.0

 
$
225.0

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
3-5 years
Intangible assets, net are summarized as follows:
 
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

 
December 31, 2015
 
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
61.2

 
n/a

 
$
(3.7
)
 
57.5

Finite-lived intangible assets:
 
 
 
 
 
 
 
Customer-related
361.2

 
$
(196.8
)
 
 n/a

 
164.4

Developed technology
210.1

 
(148.0
)
 
 n/a

 
62.1

Trade names
11.2

 
(5.2
)
 
 n/a

 
6.0

Other
1.1

 
(0.8
)
 
 n/a

 
0.3

 
$
1,089.8

 
$
(350.8
)
 
$
(3.7
)
 
$
735.3

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,
 
2016
 
2015
 
2014
Expected term (in years)
6.1

 
6.3

 
6.5

Expected volatility
37.7
%
 
39.1
%
 
42.2
%
Expected dividend yield
—

 
—

 
—

Risk-free interest rate
1.4
%
 
1.7
%
 
1.9
%
Fair Value, Assets Measured on Recurring Basis 
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, as follows:
 
December 31, 2016
 
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

Total assets measured and recorded at fair value
$
6.6

 
$
185.9

 
$
—

 
$
192.5

 
 
(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.
 
December 31, 2015
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents:
 
 
 
 
 
 
 
Reverse repurchase agreements(1)
$
—

 
$
40.0

 
$
—

 
$
40.0

Short-term investments:
 
 
 
 
 
 
 
Certificates of deposit
4.5

 
—

 
—

 
4.5

Total assets measured and recorded at fair value
$
4.5

 
$
40.0

 
$
—

 
$
44.5

 
 
(1)
Reverse repurchase agreements include a $40.0 million repurchase agreement with Wells Fargo in overnight sweeps.
Goodwill and Intangible Assets (Tables)
Schedule of Goodwill 
The following table summarizes changes in our goodwill balance:
Balance at December 31, 2014
$
1,661.2

2015 acquisitions
2.2

Balance at December 31, 2015
1,663.4

2016 acquisitions
55.0

Balance at December 31, 2016
$
1,718.4

Schedule of Indefinite-Lived Intangible Assets 
Intangible assets, net are summarized as follows:
 
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

 
December 31, 2015
 
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
61.2

 
n/a

 
$
(3.7
)
 
57.5

Finite-lived intangible assets:
 
 
 
 
 
 
 
Customer-related
361.2

 
$
(196.8
)
 
 n/a

 
164.4

Developed technology
210.1

 
(148.0
)
 
 n/a

 
62.1

Trade names
11.2

 
(5.2
)
 
 n/a

 
6.0

Other
1.1

 
(0.8
)
 
 n/a

 
0.3

 
$
1,089.8

 
$
(350.8
)
 
$
(3.7
)
 
$
735.3

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
3-5 years
Intangible assets, net are summarized as follows:
 
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

 
December 31, 2015
 
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
61.2

 
n/a

 
$
(3.7
)
 
57.5

Finite-lived intangible assets:
 
 
 
 
 
 
 
Customer-related
361.2

 
$
(196.8
)
 
 n/a

 
164.4

Developed technology
210.1

 
(148.0
)
 
 n/a

 
62.1

Trade names
11.2

 
(5.2
)
 
 n/a

 
6.0

Other
1.1

 
(0.8
)
 
 n/a

 
0.3

 
$
1,089.8

 
$
(350.8
)
 
$
(3.7
)
 
$
735.3

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense 
Based on the balance of finite-lived intangible assets at December 31, 2016, expected future amortization expense is as follows:
Year Ending December 31:
 
2017
$
58.3

2018
50.1

2019
30.9

2020
23.5

2021
2.6

Thereafter
—

 
$
165.4

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, 2013
 
25,805

 
 
 
6.42

 
 
 
 
Granted
 
4,787

 
7.83

 
16.70

 
 
 
 
Exercised
 
(1,760
)
 
 
 
4.26

 
 
 
20.3

Forfeited
 
(2,180
)
 
 
 
8.14

 
 
 
 
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

 
6.8
 
389.2

Vested at December 31, 2016
 
9,034

 
 
 
9.25

 
5.8
 
232.2

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, 2013
 
—

 
 
Granted
 
87

 
16.11

Vested
 
—

 
 
Forfeited
 
—

 
 
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

 
 
Deferred Revenue (Tables)
Deferred Revenue, by Arrangement
Deferred revenue consisted of the following:
 
December 31,
 
2016
 
2015
Current:
 
 
 
Domains
$
531.2

 
$
497.2

Hosting and presence
370.8

 
330.8

Business applications
141.5

 
109.7

 
$
1,043.5

 
$
937.7

Noncurrent:
 
 
 
Domains
$
311.1

 
$
288.5

Hosting and presence
163.4

 
149.7

Business applications
58.2

 
40.3

 
$
532.7

 
$
478.5

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,
 
2016
 
2015
Accrued payroll and employee benefits
$
74.0

 
$
64.7

Accrued acquisition-related expenses and acquisition consideration payable
13.4

 
2.1

Accrued marketing and advertising expenses
9.8

 
10.7

Current portion of capital lease obligation
6.9

 
12.0

Transaction-based taxes payable
6.8

 
4.3

Accrued indirect tax liabilities
6.1

 
7.1

Accrued other
26.0

 
26.1

 
$
143.0

 
$
127.0

Long-Term Debt (Tables)
Schedule of Long-term Debt Instruments 
Long-term debt consists of the following:
 
December 31,
 
2016
 
2015
Term Loan due May 13, 2021 (effective interest rate of 4.9% at December 31, 2016 and 5.1% at December 31, 2015)
$
1,072.5

 
$
1,083.5

Revolving Credit Loan due May 13, 2019
—

 
—

Total
1,072.5

 
1,083.5

Less unamortized original issue discounts on long-term debt(1)
(30.5
)
 
(36.8
)
Less unamortized debt issuance costs(1)
(2.3
)
 
(2.7
)
Less current portion of long-term debt
(4.0
)
 
(4.2
)
 
$
1,035.7

 
$
1,039.8

 
 
(1)
Original issue discounts 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 discounts and debt issuance costs, due on long-term debt as of December 31, 2016 are as follows:
Year Ending December 31:
 
2017
$
11.0

2018
11.0

2019
11.0

2020
11.0

2021
1,028.5

Thereafter
—

 
$
1,072.5

Commitments and Contingencies (Tables)
Schedule of Future Minimum Lease Payments for Capital Leases 
Future minimum payments under this lease as of December 31, 2016 are as follows:
Year Ending December 31:
 
2017
$
3.2

2018
3.2

2019
3.2

2020
3.4

2021
3.6

Thereafter
12.2

 
$
28.8

Future minimum lease obligations under capital leases and non-cancelable operating leases with initial terms in excess of one year at December 31, 2016 are as follows:
Year Ending December 31:
 
Capital
Leases
 
Operating
Leases
2017
 
$
6.8

 
$
28.6

2018
 
2.9

 
21.0

2019
 
1.3

 
11.0

2020
 
—

 
5.1

2021
 
—

 
4.3

Thereafter
 
—

 
14.9

Total minimum payments
 
11.0

 
$
84.9

Less: amount representing interest
 
(0.4
)
 
 
Capital lease obligation
 
$
10.6

 
 
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, 2016 are as follows:
Year Ending December 31:
 
Capital
Leases
 
Operating
Leases
2017
 
$
6.8

 
$
28.6

2018
 
2.9

 
21.0

2019
 
1.3

 
11.0

2020
 
—

 
5.1

2021
 
—

 
4.3

Thereafter
 
—

 
14.9

Total minimum payments
 
11.0

 
$
84.9

Less: amount representing interest
 
(0.4
)
 
 
Capital lease obligation
 
$
10.6

 
 
Long-term Purchase Commitment 
Future minimum obligations under these non-cancelable agreements with initial terms in excess of one year at December 31, 2016 are as follows:
Year Ending December 31:
 
2017
$
9.7

2018
4.0

2019
2.6

2020
1.4

Thereafter
—

Total minimum payments
$
17.7

Income Taxes (Tables)
Schedule of Components of Income Tax Expense (Benefit) 
Our tax provision includes federal, state and foreign income taxes. The domestic and foreign components of our loss before income taxes were as follows:
 
Year Ended December 31,
 
2016
 
2015
 
2014
U.S. loss before tax
$
(28.5
)
 
$
(121.2
)
 
$
(149.0
)
Foreign income before tax
7.0

 
0.6

 
2.9

Loss before income taxes
$
(21.5
)
 
$
(120.6
)
 
$
(146.1
)
Our (provision) benefit for income taxes was as follows:
 
Year Ended December 31,
 
2016
 
2015
 
2014
Current:
 
 
 
 
 
Federal
$
(0.3
)
 
$
(0.3
)
 
$
(0.1
)
State
(0.3
)
 
(0.1
)
 
(0.3
)
Foreign
(3.5
)
 
(2.4
)
 
(3.6
)
 
(4.1
)
 
(2.8
)
 
(4.0
)
Deferred:
 
 
 
 
 
Federal
3.1

 
2.4

 
4.9

State
0.3

 
0.4

 
1.7

Foreign
0.3

 
0.2

 
0.2

 
3.7

 
3.0

 
6.8

(Provision) benefit for income taxes
$
(0.4
)
 
$
0.2

 
$
2.8

Schedule of Effective Income Tax Rate Reconciliation 
A reconciliation of the statutory federal income tax rate to our effective income tax rate was as follows:
 
Year Ended December 31,
 
2016
 
2015
 
2014
Expected benefit at federal statutory tax rate (35% for 2016 and 2015; 34% for 2014)
$
7.5

 
$
42.2

 
$
49.7

Effect of rates due to pass-through entities
(0.1
)
 
2.8

 
(45.8
)
Income of non-controlling interest
(1.8
)
 
(15.6
)
 
—

Foreign earnings
(0.9
)
 
(2.2
)
 
(2.5
)
TRA liability adjustment
(3.8
)
 
—

 
—

State taxes, net of federal benefit
0.1

 
5.4

 
1.5

Other
0.1

 
(0.7
)
 
(0.1
)
Valuation allowance
(1.5
)
 
(31.7
)
 
—

(Provision) benefit for income taxes
$
(0.4
)
 
$
0.2

 
$
2.8

Schedule of Deferred Tax Assets and Liabilities 
The components of our net DTAs were as follows:
 
December 31,
 
2016
 
2015
DTAs:
 
 
 
Net operating losses
$
167.4

 
$
131.9

Credits and incentives
2.7

 
2.5

Investment in Desert Newco
188.3

 
4.7

Deferred interest
11.2

 
8.2

Other
2.3

 
1.6

Valuation allowance
(358.2
)
 
(135.1
)
Total DTAs
13.7

 
13.8

DTLs:
 
 
 
Identified intangible assets
(8.7
)
 
(8.4
)
Total DTLs
(8.7
)
 
(8.4
)
Net DTAs
$
5.0

 
$
5.4

Summary of Operating Loss Carryforwards 
As of December 31, 2016, we have 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
$
424.6

 
$
396.2

State NOLs, credits and incentives
500.9

 
480.2

Foreign NOLs
2.4

 
1.1

Total NOLs, credits and incentives
$
927.9


$
877.5

Summary of Tax Credit Carryforwards 
As of December 31, 2016, we have 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
$
424.6

 
$
396.2

State NOLs, credits and incentives
500.9

 
480.2

Foreign NOLs
2.4

 
1.1

Total NOLs, credits and incentives
$
927.9


$
877.5

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 loss per share is as follows:
 
Year Ended December 31,
 
2016
 
2015
 
2014
Numerator:
 
 
 
 
 
Net loss
$
(21.9
)
 
$
(120.4
)
 
$
(143.3
)
Less: net loss attributable to non-controlling interests
(5.4
)
 
(73.0
)
 
(100.1
)
Net loss attributable to GoDaddy Inc.
$
(16.5
)
 
$
(47.4
)
 
$
(43.2
)
Denominator:
 
 
 
 
 
Weighted-average shares of Class A common stock outstanding—basic
79,835

 
58,676

 
38,826

Effect of dilutive securities
—

 
—

 
—

Weighted-average shares of Class A common stock outstanding—diluted
79,835

 
58,676

 
38,826

 
 
 
 
 
 
Net loss per share of Class A common stock—basic and diluted
$
(0.21
)
 
$
(0.81
)
 
$
(1.11
)
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 loss per share because the effect of including such potentially dilutive shares would have been antidilutive:
 
Year Ended December 31,
 
2016
 
2015
 
2014
Options and vesting LLC Units
13,517

 
15,159

 
10,406

RSUs, warrants and ESPP shares
363

 
139

 
113

 
13,880

 
15,298

 
10,519

Schedule of Stock by Class 
Total shares of common stock outstanding were as follows:
 
December 31,
 
2016
 
2015
Class A common stock
88,558

 
67,083

Class B common stock
78,554

 
90,398

 
167,112

 
157,481

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,
 
2016
 
2015
 
2014
U.S.
$
1,350.1

 
$
1,192.6

 
$
1,038.8

International
497.8

 
414.7

 
348.5

 
$
1,847.9

 
$
1,607.3

 
$
1,387.3

Related Party Transactions (Tables)
Schedule of Related Party Transactions
Payments made to YAM, other than those associated with the repayment of the senior note in April 2015, as described in Note 9, were as follows:
 
Year Ended December 31,
 
2016
 
2015
 
2014
Interest on the senior note
$
—

 
$
9.2

 
$
27.0

Amounts paid to affiliates of KKR related to their participation as lenders under our Credit Facility were as follows:
 
Year Ended December 31,
 
2016
 
2015
 
2014
Principal
$
0.1

 
$
5.3

 
$
0.2

Interest and other fees
0.8

 
1.4

 
2.2

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. Our unaudited quarterly results were as follows:
 
Three Months Ended
 
Dec. 31, 2016
 
Sept. 30, 2016
 
Jun. 30, 2016
 
Mar. 31, 2016
 
Dec. 31, 2015
 
Sept. 30, 2015
 
Jun. 30, 2015
 
Mar. 31, 2015
Total revenue
$
485.9

 
$
472.1

 
$
456.2

 
$
433.7

 
$
425.4

 
$
411.1

 
$
394.5

 
$
376.3

Operating income (loss)
$
17.9

 
$
21.2

 
$
9.7

 
$
1.3

 
$
12.2

 
$
10.9

 
$
(33.6
)
 
$
(20.5
)
Net income (loss)
$
(0.8
)
 
$
8.3

 
$
(11.1
)
 
$
(18.3
)
 
$
(0.5
)
 
$
(5.2
)
 
$
(71.3
)
 
$
(43.4
)
Net income (loss) attributable to GoDaddy Inc.
$
(1.9
)
 
$
4.8

 
$
(8.9
)
 
$
(10.5
)
 
$
0.1

 
$
(2.5
)
 
$
(29.8
)
 
$
(43.4
)
Net income (loss) per share of Class A common stock—basic
$
(0.02
)
 
$
0.06

 
$
(0.11
)
 
$
(0.15
)
 
$
0.00

 
$
(0.04
)
 
$
(0.46
)
 
$
(0.34
)
Net income (loss) per share of Class A common stock—diluted
$
(0.02
)
 
$
0.05

 
$
(0.11
)
 
$
(0.15
)
 
$
0.00

 
$
(0.04
)
 
$
(0.46
)
 
$
(0.34
)
Organization and Background (Details)
12 Months Ended 0 Months Ended
Dec. 31, 2016
segment
Dec. 31, 2016
Desert Newco, LLC
Entity Information [Line Items]
 
 
Ownership percent in Desert Newco
 
53.00% 
Number of reporting units
1 
 
Number of operating segments
1 
 
Summary of Significant Accounting Policies (Details) (USD $)
12 Months Ended 0 Months Ended 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Apr. 7, 2015
Reorganization Parties and Continuing LLC Owners
Investor
Tax Receivable Agreement
agreement
Dec. 31, 2016
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, 2016
Cash Flow Hedging
Designated as Hedging Instrument
Foreign Exchange Forward Contract
Dec. 31, 2015
Cash Flow Hedging
Designated as Hedging Instrument
Foreign Exchange Forward Contract
Dec. 31, 2016
Other Nonoperating Income (Expense)
Dec. 31, 2015
Other Nonoperating Income (Expense)
Dec. 31, 2014
Other Nonoperating Income (Expense)
Jan. 31, 2017
Subsequent Event
Cash Flow Hedging
Designated as Hedging Instrument
Foreign Exchange Forward Contract
Entity Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents related to payment processor transactions
$ 15,500,000 
$ 12,200,000 
 
 
 
 
 
 
 
 
 
 
Derivative notional amount
 
 
 
 
 
 
0 
104,600,000.0 
 
 
 
108,800,000 
Foreign currency gain (loss)
 
 
 
 
 
 
 
 
(4,600,000)
(3,500,000)
(3,000,000)
 
Advertising expense
$ 194,000,000 
$ 177,600,000 
$ 139,400,000 
 
 
 
 
 
 
 
 
 
Number of tax receivable agreements
 
 
 
5 
 
 
 
 
 
 
 
 
Percent of tax benefits owed under tax receivable agreement
 
 
 
 
85.00% 
85.00% 
 
 
 
 
 
 
Summary of Significant Accounting Policies Property Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Property, Plant and Equipment [Line Items]
 
 
 
Property and equipment, gross
$ 509.0 
$ 461.0 
 
Less accumulated depreciation and amortization
(278.0)
(236.0)
 
Property and equipment, net
231.0 
225.0 
 
Accumulated depreciation
278.0 
236.0 
 
Depreciation
69.9 
61.3 
55.6 
Computer equipment
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property and equipment, gross
283.3 
248.7 
 
Property and equipment, useful life
3 years 
 
 
Software
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property and equipment, gross
27.3 
28.5 
 
Property and equipment, useful life
3 years 
 
 
Land
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property and equipment, gross
9.0 
9.0 
 
Buildings, including improvements
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property and equipment, gross
123.1 
112.8 
 
Buildings, including improvements |
Minimum
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property and equipment, useful life
2 years 
 
 
Buildings, including improvements |
Maximum
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property and equipment, useful life
25 years 
 
 
Building acquired under lease financing obligation
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property and equipment, gross
18.1 
18.1 
 
Property and equipment, useful life
40 years 
 
 
Leasehold improvements
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property and equipment, gross
36.1 
34.1 
 
Other
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property and equipment, gross
12.1 
9.8 
 
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
7 years 
 
 
Acquired under capital lease agreement
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property and equipment, gross
34.8 
31.7 
 
Less accumulated depreciation and amortization
(23.8)
(16.1)
 
Accumulated depreciation
$ 23.8 
$ 16.1 
 
Summary of Significant Accounting Policies Schedule of Intangible Assets (Details)
12 Months Ended
Dec. 31, 2016
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
5 years 
Summary of Significant Accounting Policies Assumptions Used in Valuing Stock Options (Details) (Employee Stock Option)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Employee Stock Option
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected term (in years)
6 years 1 month 20 days 
6 years 3 months 18 days 
6 years 6 months 
Expected volatility
37.70% 
39.10% 
42.20% 
Expected dividend yield
0.00% 
0.00% 
0.00% 
Risk-free interest rate
1.40% 
1.70% 
1.90% 
Summary of Significant Accounting Policies Fair value of Assets Measured on Recurring Basis (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Morgan Stanley
Dec. 31, 2016
Morgan Stanley
Dec. 31, 2016
Wells Fargo
Dec. 31, 2015
Wells Fargo
Dec. 31, 2016
Fair Value, Measurements, Recurring
Dec. 31, 2015
Fair Value, Measurements, Recurring
Dec. 31, 2016
Fair Value, Measurements, Recurring
Reverse repurchase agreements
Dec. 31, 2015
Fair Value, Measurements, Recurring
Reverse repurchase agreements
Dec. 31, 2016
Fair Value, Measurements, Recurring
Commercial paper
Dec. 31, 2016
Fair Value, Measurements, Recurring
Certificates of deposit and time deposits
Dec. 31, 2015
Fair Value, Measurements, Recurring
Certificates of deposit and time deposits
Dec. 31, 2016
Fair Value, Measurements, Recurring
Level 1
Dec. 31, 2015
Fair Value, Measurements, Recurring
Level 1
Dec. 31, 2016
Fair Value, Measurements, Recurring
Level 1
Reverse repurchase agreements
Dec. 31, 2015
Fair Value, Measurements, Recurring
Level 1
Reverse repurchase agreements
Dec. 31, 2016
Fair Value, Measurements, Recurring
Level 1
Commercial paper
Dec. 31, 2016
Fair Value, Measurements, Recurring
Level 1
Certificates of deposit and time deposits
Dec. 31, 2015
Fair Value, Measurements, Recurring
Level 1
Certificates of deposit and time deposits
Dec. 31, 2016
Fair Value, Measurements, Recurring
Level 2
Dec. 31, 2015
Fair Value, Measurements, Recurring
Level 2
Dec. 31, 2016
Fair Value, Measurements, Recurring
Level 2
Reverse repurchase agreements
Dec. 31, 2015
Fair Value, Measurements, Recurring
Level 2
Reverse repurchase agreements
Dec. 31, 2016
Fair Value, Measurements, Recurring
Level 2
Commercial paper
Dec. 31, 2016
Fair Value, Measurements, Recurring
Level 2
Certificates of deposit and time deposits
Dec. 31, 2015
Fair Value, Measurements, Recurring
Level 2
Certificates of deposit and time deposits
Dec. 31, 2016
Fair Value, Measurements, Recurring
Level 3
Dec. 31, 2015
Fair Value, Measurements, Recurring
Level 3
Dec. 31, 2016
Fair Value, Measurements, Recurring
Level 3
Reverse repurchase agreements
Dec. 31, 2015
Fair Value, Measurements, Recurring
Level 3
Reverse repurchase agreements
Dec. 31, 2016
Fair Value, Measurements, Recurring
Level 3
Commercial paper
Dec. 31, 2016
Fair Value, Measurements, Recurring
Level 3
Certificates of deposit and time deposits
Dec. 31, 2015
Fair Value, Measurements, Recurring
Level 3
Certificates of deposit and time deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents, fair value
 
 
 
 
 
 
$ 130.0 
 
$ 55.9 
 
 
 
 
$ 0 
 
$ 0 
 
 
 
 
$ 130.0 
 
$ 55.9 
 
 
 
 
$ 0 
 
$ 0 
 
 
Short-term investments, fair value
 
 
 
 
 
 
 
40.0 
 
6.6 
4.5 
 
 
 
0 
 
6.6 
4.5 
 
 
 
40.0 
 
0 
0 
 
 
 
0 
 
0 
0 
Total assets measured and recorded at fair value
 
 
 
 
192.5 
44.5 
 
 
 
 
 
6.6 
4.5 
 
 
 
 
 
185.9 
40.0 
 
 
 
 
 
0 
0 
 
 
 
 
 
Repurchase agreement amount
 
$ 80.0 
$ 50.0 
$ 40.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repurchase agreement, call option notice period
31 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisitions (Details)
In Millions, unless otherwise specified
0 Months Ended 12 Months Ended
Dec. 5, 2016
EUR (€)
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Dec. 31, 2016
Series of Individually Immaterial Business Acquisitions
USD ($)
Business
Dec. 31, 2015
Series of Individually Immaterial Business Acquisitions
USD ($)
Business
Dec. 31, 2014
Series of Individually Immaterial Business Acquisitions
USD ($)
Business Acquisition [Line Items]
 
 
 
 
 
 
 
Number of businesses acquired
 
 
 
 
6 
4 
 
Aggregate consideration transferred
 
$ 118.5 
$ 64.7 
$ 40.7 
$ 125.5 
$ 64.7 
$ 42.0 
Consideration payable
1,080.0 
 
 
 
7.0 
 
 
Contingent consideration
 
 
 
 
 
 
6.0 
Contingent consideration liability
 
 
 
 
5.6 
 
 
Identified indefinite-lived intangible assets acquired
 
 
 
 
59.3 
60.2 
10.8 
Goodwill
 
1,718.4 
1,663.4 
1,661.2 
55.0 
2.2 
33.6 
Goodwill, amount not expected to be tax deductible
 
 
 
 
37.5 
 
 
Other identified intangible assets acquired
 
 
 
 
21.4 
3.2 
 
Net liabilities assumed
 
 
 
 
11.3 
0.9 
2.4 
Reduction in deferred revenue
 
 
 
 
$ 1.1 
 
 
Weighted average useful life
 
 
 
 
5 years 6 months 
 
 
Goodwill and Intangible Assets - Goodwill (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Goodwill [Roll Forward]
 
 
Balance, beginning of period
$ 1,663.4 
$ 1,661.2 
Acquisitions
55.0 
2.2 
Balance, end of period
$ 1,718.4 
$ 1,663.4 
Goodwill and Intangible Assets - Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, accumulated amortization
$ (439.9)
$ (350.8)
Finite-lived intangible assets, net
165.4 
 
Indefinite-lived Intangible Assets [Line Items]
 
 
Domains sold
(14.4)
(3.7)
Intangible assets, gross (excluding goodwill)
1,170.8 
1,089.8 
Intangible assets, net (excluding goodwill)
716.5 
735.3 
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)
106.1 
57.5 
Indefinite-lived intangible assets (excluding goodwill), gross
120.5 
61.2 
Domains sold
(14.4)
(3.7)
Customer-related
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
367.4 
361.2 
Finite-lived intangible assets, accumulated amortization
(245.4)
(196.8)
Finite-lived intangible assets, net
122.0 
164.4 
Developed technology
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
226.0 
210.1 
Finite-lived intangible assets, accumulated amortization
(187.0)
(148.0)
Finite-lived intangible assets, net
39.0 
62.1 
Trade names
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
11.9 
11.2 
Finite-lived intangible assets, accumulated amortization
(7.5)
(5.2)
Finite-lived intangible assets, net
4.4 
6.0 
Other
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
 
1.1 
Finite-lived intangible assets, accumulated amortization
 
(0.8)
Finite-lived intangible assets, net
 
$ 0.3 
Goodwill and Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
 
 
 
Intangible assets purchased
$ 1.3 
$ 23.5 
$ 0 
Amortization expense
90.2 
97.5 
97.2 
Weighted Average
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Weighted average remaining amortization period
44 months 
 
 
Customer-related
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Intangible assets purchased
 
$ 22.5 
 
Useful life
 
48 months 
 
Customer-related |
Weighted Average
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Useful life
98 months 
 
 
Developed technology |
Weighted Average
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Useful life
65 months 
 
 
Trade names |
Weighted Average
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Useful life
56 months 
 
 
Goodwill and Intangible Assets - Future Amortization of Finite Lived Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
 
2017
$ 58.3 
2018
50.1 
2019
30.9 
2020
23.5 
2021
2.6 
Thereafter
0 
Finite-lived intangible assets, net
$ 165.4 
Stockholders' Equity (Details) (USD $)
0 Months Ended 12 Months Ended 0 Months Ended 1 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 1 Months Ended 0 Months Ended 0 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended
Apr. 7, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Mar. 31, 2015
Apr. 7, 2015
Affiliated Entity
Sponsors
Apr. 7, 2015
Affiliated Entity
Robert R. Parsons
May 31, 2014
Desert Newco, LLC
Dec. 31, 2016
Desert Newco, LLC
2011 Unit Incentive Plan
Apr. 7, 2015
Class A Common Stock
Dec. 31, 2016
Class A Common Stock
Dec. 31, 2015
Class A Common Stock
Apr. 7, 2015
Class A Common Stock
Mar. 31, 2015
Class A Common Stock
Apr. 7, 2015
Class A Common Stock
Affiliated Entity
Unidentified Affiliated Shareholders
Apr. 30, 2016
Class A Common Stock
Secondary Offering
Apr. 7, 2015
Class A Common Stock
Investor Corp Mergers
Private Placement
Apr. 7, 2015
Class B Common Stock
Dec. 31, 2016
Class B Common Stock
Dec. 31, 2015
Class B Common Stock
Mar. 31, 2015
Class B Common Stock
Apr. 7, 2015
LLC Units
Desert Newco, LLC
Investor Corp Mergers
Apr. 30, 2016
Conversion of LLC Units to Class A Common Stock
Dec. 31, 2016
Additional Paid-in Capital
Apr. 30, 2016
Additional Paid-in Capital
Conversion of LLC Units to Class A Common Stock
Class of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares issued
 
 
 
 
 
 
 
 
 
26,000,000 
 
 
 
 
2,500 
18,975 
38,826,000 
90,425 
 
 
 
38,826,000 
 
 
 
Share price (in USD per share)
 
 
 
 
 
 
 
 
 
 
 
 
$ 20.00 
 
 
$ 30.25 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of IPO
 
$ 0 
$ 482,400,000 
$ (1,800,000)
 
 
 
 
 
$ 491,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payments of stock issuance costs
11,200,000 
 
 
 
 
1,300,000 
100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock shares authorized
 
 
 
 
 
 
 
 
 
 
1,000,000,000 
1,000,000,000 
 
1,000,000,000 
 
 
 
 
500,000,000 
500,000,000 
500,000,000 
 
 
 
 
Preferred stock shares authorized
 
50,000,000 
50,000,000 
 
50,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Par value (in dollars per share)
 
 
 
 
 
 
 
 
 
 
$ 0.001 
$ 0.001 
 
$ 0.001 
 
 
 
 
$ 0.001 
$ 0.001 
$ 0.001 
 
 
 
 
Preferred stock par value (in dollars per share)
 
$ 0.001 
$ 0.001 
 
$ 0.001 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from stock options exercised
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6,300,000 
 
 
 
 
 
 
 
 
 
Conversion of stock, shares converted
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10,382 
 
 
Effect of exchanges of LLC Units
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15,300,000 
8,800,000 
Distributions authorized
 
 
 
 
 
 
 
$ 350,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustment to exercise price of awards due to antidilution provisions (in USD per share)
 
 
 
 
 
 
 
 
$ 2.60 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity-Based Compensation Plans (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2016
Employee Stock
Dec. 31, 2015
Employee Stock
Dec. 31, 2014
Employee Stock
Dec. 31, 2016
Employee Stock Option
Dec. 31, 2016
Restricted Stock Units (RSUs)
Dec. 31, 2016
2015 Equity Incentive Plan
Stock Compensation Plan
Mar. 31, 2015
2015 Equity Incentive Plan
Stock Compensation Plan
Jan. 1, 2016
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, 2016
2015 Employee Stock Purchase Plan
Employee Stock
Mar. 31, 2015
2015 Employee Stock Purchase Plan
Employee Stock
Jan. 1, 2016
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
 
 
 
 
 
 
 
 
 
10,285,000 
 
 
 
2,000,000 
 
Shares rolled over
 
 
 
 
 
 
 
 
12,579,000 
 
 
28,133,000 
2,123,000 
 
 
Common Stock, Additional Capital Shares Reserved for Future Issuance
 
 
 
 
 
 
 
 
 
 
6,299,000 
 
 
 
1,000,000 
Annual increase in shares reserved for issuance under equity incentive plan
 
 
 
 
 
 
 
 
 
20,571,000 
 
 
 
1,000,000 
 
Annual increase in shares reserved for issuance under equity incentive plan, percent
 
 
 
 
 
 
 
 
 
4.00% 
 
 
 
1.00% 
 
Equity-based compensation expense
$ 56.8 
$ 40.4 
$ 30.1 
$ 4.1 
$ 4.7 
$ 0 
 
$ 4.4 
 
 
 
 
 
 
 
Additional expense resulting from modification of certain awards
3.1 
3.6 
3.7 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation costs
 
 
 
2.0 
 
 
39.1 
50.0 
 
 
 
 
 
 
 
Weighted average recognition period
 
 
 
 
 
 
1 year 10 months 24 days 
2 years 9 months 21 days 
 
 
 
 
 
 
 
Funds withheld on behalf of employees for future purchases under the ESPP
 
 
 
$ 1.9 
 
 
 
 
 
 
 
 
 
 
 
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, 2016
Dec. 31, 2015
Dec. 31, 2014
Employee Stock Option
 
 
 
Options Outstanding [Roll Forward]
 
 
 
Options outstanding, beginning of period (in shares)
27,419 
26,652 
25,805 
Grants (in shares)
2,136 
3,926 
4,787 
Exercises (in shares)
(9,187)
(1,749)
(1,760)
Forfeitures (in shares)
(1,740)
(1,410)
(2,180)
Options outstanding, end of period (in shares)
18,628 
27,419 
26,652 
Weighted-average grant date fair value of options granted (in dollars per share)
$ 11.97 
$ 9.77 
$ 7.83 
Weighted Average Exercise Price
 
 
 
Options outstanding, weighted average exercise price, beginning of period (in dollars per share)
$ 10.25 
$ 8.27 
$ 6.42 
Weighted-average exercise price of options granted (in dollars per share)
$ 30.93 
$ 23.66 
$ 16.70 
Weighted-average exercise price of options exercised (in dollars per share)
$ 5.99 
$ 7.65 
$ 4.26 
Weighted-average exercise price of options forfeited (in dollars per share)
$ 17.25 
$ 13.47 
$ 8.14 
Options outstanding, weighted average exercise price, end of period (in dollars per share)
$ 14.06 
$ 10.25 
$ 8.27 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
 
 
 
Options exercised, aggregate intrinsic value
$ 242.4 
$ 35.5 
$ 20.3 
Options outstanding, weighted average remaining contractual life (in years)
6 years 9 months 18 days 
 
 
Options outstanding, aggregate intrinsic value
389.2 
 
 
Options vested
9,034 
 
 
Options vested, weighted average exercise price (in dollars per share)
$ 9.25 
 
 
Options vested, weighted average remaining contractual life (in years)
5 years 9 months 29 days 
 
 
Options vested, aggregate intrinsic value
$ 232.2 
 
 
Restricted Stock Units (RSUs)
 
 
 
RSU Activity [Roll Forward]
 
 
 
Outstanding, beginning of period (in shares)
93 
87 
0 
Granted (in shares)
3,129 
52 
87 
Vested (in shares)
(241)
(46)
0 
Forfeited (in shares)
(224)
0 
0 
Outstanding, end of period (in shares)
2,757 
93 
87 
Granted, weighted average grant date fair value (in dollars per share)
$ 30.98 
$ 31.50 
$ 16.11 
Deferred Revenue (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue, current
$ 1,043.5 
$ 937.7 
Deferred revenue, noncurrent
532.7 
478.5 
Domains
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue, current
531.2 
497.2 
Deferred revenue, noncurrent
311.1 
288.5 
Hosting and presence
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue, current
370.8 
330.8 
Deferred revenue, noncurrent
163.4 
149.7 
Business applications
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue, current
141.5 
109.7 
Deferred revenue, noncurrent
$ 58.2 
$ 40.3 
Accrued Expenses and Other Current Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Payables and Accruals [Abstract]
 
 
Accrued payroll and employee benefits
$ 74.0 
$ 64.7 
Accrued acquisition-related expenses and acquisition consideration payable
13.4 
2.1 
Accrued marketing and advertising expenses
9.8 
10.7 
Current portion of capital lease obligation
6.9 
12.0 
Transaction-based taxes payable
6.8 
4.3 
Accrued indirect tax liabilities
6.1 
7.1 
Accrued other
26.0 
26.1 
Accrued expenses and other current liabilities
$ 143.0 
$ 127.0 
Long-Term Debt - Schedule of Long Term Debt (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Long-term Debt
$ 1,072.5 
$ 1,083.5 
Less unamortized original issue discounts on long-term debt
(30.5)
(36.8)
Less unamortized deferred financing fees
(2.3)
(2.7)
Less current portion of long-term debt
(4.0)
(4.2)
Long-term debt, net of current portion
1,035.7 
1,039.8 
Term Loan |
Term Loan Due May 2021
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
1,072.5 
1,083.5 
Effective interest rate
4.90% 
5.10% 
Line of Credit |
Revolving Credit Loan Due May 2019 |
Revolving Credit Facility
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
$ 0 
$ 0 
Long-Term Debt (Details) (USD $)
12 Months Ended 1 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Apr. 30, 2015
Note Payable Due December 2019
YAM Special Holdings, Inc
Affiliated Entity
Loans Held by Related Parties
Senior Notes
Dec. 16, 2011
Note Payable Due December 2019
YAM Special Holdings, Inc
Affiliated Entity
Loans Held by Related Parties
Senior Notes
Dec. 31, 2016
Term Loan
Term Loan Due May 2021
Dec. 31, 2016
Term Loan
Term Loan Due May 2021
Level 2
Apr. 30, 2015
Line of Credit
Revolving Credit Loan Due May 2019
Revolving Credit Facility
Dec. 31, 2016
Line of Credit
Revolving Credit Loan Due May 2019
Revolving Credit Facility
Dec. 31, 2016
Senior Notes
Note Payable Due December 2019
YAM Special Holdings, Inc
Affiliated Entity
Loans Held by Related Parties
Dec. 31, 2015
Senior Notes
Note Payable Due December 2019
YAM Special Holdings, Inc
Affiliated Entity
Loans Held by Related Parties
Dec. 31, 2014
Senior Notes
Note Payable Due December 2019
YAM Special Holdings, Inc
Affiliated Entity
Loans Held by Related Parties
Dec. 31, 2016
Option 1
Credit Facility
London Interbank Offered Rate (LIBOR)
Dec. 31, 2016
Option 1
Minimum
Credit Facility
London Interbank Offered Rate (LIBOR)
Dec. 31, 2016
Option 2
Credit Facility
London Interbank Offered Rate (LIBOR)
Dec. 31, 2016
Option 2
Credit Facility
Federal Funds Rate
Dec. 31, 2016
Option 2
Minimum
Credit Facility
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, face amount
 
 
 
 
 
$ 1,100,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity
 
 
 
 
 
 
 
 
150,000,000.0 
 
 
 
 
 
 
 
 
Interest rate
 
 
 
 
9.00% 
 
 
 
 
 
 
 
 
1.00% 
 
 
2.25% 
Basis spread on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
3.25% 
 
1.00% 
0.50% 
 
Unused commitment fee upon achievement of certain financial ratios
 
 
 
 
 
 
 
 
0.375% 
 
 
 
 
 
 
 
 
Repayment of revolving credit loan
11,000,000 
11,000,000 
7,600,000 
 
 
 
 
75,000,000 
 
 
 
 
 
 
 
 
 
Available borrowing capacity
 
 
 
 
 
 
 
 
150,000,000 
 
 
 
 
 
 
 
 
Debt, fair value
 
 
 
 
 
 
1,079,200,000 
 
 
 
 
 
 
 
 
 
 
Repayments of related party debt
 
 
 
316,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayments of principal
 
 
 
300,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prepayment premiums
 
 
 
13,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on long-term debt
46,500,000 
59,100,000 
75,400,000 
2,500,000 
 
 
 
 
 
0 
9,200,000 
27,000,000 
 
 
 
 
 
Unamortized debt discount recorded as loss on debt extinguishment
7,400,000 
7,900,000 
9,100,000 
7,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Write off of deferred financing costs
 
 
 
$ 800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt - Schedule of Debt Maturities (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Debt Disclosure [Abstract]
 
 
2017
$ 11.0 
 
2018
11.0 
 
2019
11.0 
 
2020
11.0 
 
2021
1,028.5 
 
Thereafter
0 
 
Long-term Debt
$ 1,072.5 
$ 1,083.5 
Commitments and Contingencies (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Apr. 30, 2013
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
 
 
 
 
Lease term
11 years 
 
 
 
Monthly rent
$ 0.3 
 
 
 
Renewal term
5 years 
 
 
 
Monthly rent for renewal term, as percent of prevailing market rates
95.00% 
 
 
 
Schedule of Capital Lease Obligations [Line Items]
 
 
 
 
Rent expense
 
43.3 
42.2 
39.3 
Sales tax liability
 
6.1 
7.1 
 
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
 
19.8 
 
 
Lease finance obligation |
Other long-term liabilities
 
 
 
 
Schedule of Capital Lease Obligations [Line Items]
 
 
 
 
Lease financing obligation, long-term
 
$ 19.6 
 
 
Commitments and Contingencies Future Minimum Payments (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Operating Leases
 
2017
$ 28.6 
2018
21.0 
2019
11.0 
2020
5.1 
2021
4.3 
Thereafter
14.9 
Total minimum payments
84.9 
Purchase Obligation, Fiscal Year Maturity [Abstract]
 
2017
9.7 
2018
4.0 
2019
2.6 
2020
1.4 
Thereafter
0 
Total minimum payments
17.7 
Lease finance obligation
 
Schedule of Capital Lease Obligations [Line Items]
 
2017
3.2 
2018
3.2 
2019
3.2 
2020
3.4 
2021
3.6 
Thereafter
12.2 
Total minimum payments
28.8 
Other capital lease
 
Schedule of Capital Lease Obligations [Line Items]
 
2017
6.8 
2018
2.9 
2019
1.3 
2020
0 
2021
0 
Thereafter
0 
Total minimum payments
11.0 
Less: amount representing interest
(0.4)
Capital lease obligation
$ 10.6 
Defined Contribution Plan (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
 
 
 
Maximum employee contributions, percent
100.00% 
 
 
Employer discretionary matching contribution
$ 8.5 
$ 8.6 
$ 7.7 
Income Taxes Components of Income Tax Expense (Benefit) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]
 
 
 
U.S. loss before tax
$ (28.5)
$ (121.2)
$ (149.0)
Foreign income before tax
7.0 
0.6 
2.9 
Loss before income taxes
(21.5)
(120.6)
(146.1)
Current:
 
 
 
Federal
(0.3)
(0.3)
(0.1)
State
(0.3)
(0.1)
(0.3)
Foreign
(3.5)
(2.4)
(3.6)
Current Income Tax Expense (Benefit)
(4.1)
(2.8)
(4.0)
Deferred:
 
 
 
Federal
3.1 
2.4 
4.9 
State
0.3 
0.4 
1.7 
Foreign
0.3 
0.2 
0.2 
Deferred Income Tax Expense (Benefit)
3.7 
3.0 
6.8 
(Provision) benefit for income taxes
$ (0.4)
$ 0.2 
$ 2.8 
Income Taxes Income Tax Rate Reconciliation (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Effective Income Tax Rate Reconciliation, Amount [Abstract]
 
 
 
Expected benefit at federal statutory tax rate (35% for 2016 and 2015; 34% for 2014)
$ 7.5 
$ 42.2 
$ 49.7 
Effect of rates due to pass-through entities
(0.1)
2.8 
(45.8)
Income of non-controlling interest
(1.8)
(15.6)
0 
Foreign earnings
(0.9)
(2.2)
(2.5)
TRA liability adjustment
(3.8)
0 
0 
State taxes, net of federal benefit
0.1 
5.4 
1.5 
Other
0.1 
(0.7)
(0.1)
Valuation allowance
(1.5)
(31.7)
0 
(Provision) benefit for income taxes
$ (0.4)
$ 0.2 
$ 2.8 
Federal statutory rate
35.00% 
35.00% 
34.00% 
Income Taxes Net Deferred Tax Assets (Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
DTAs:
 
 
Net operating losses
$ 167.4 
$ 131.9 
Credits and incentives
2.7 
2.5 
Investment in Desert Newco
188.3 
4.7 
Deferred interest
11.2 
8.2 
Other
2.3 
1.6 
Valuation allowance
(358.2)
(135.1)
Total DTAs
13.7 
13.8 
DTLs:
 
 
Identified intangible assets
(8.7)
(8.4)
Total DTLs
(8.7)
(8.4)
Total DTAs
$ 5.0 
$ 5.4 
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Apr. 7, 2015
Income Tax Disclosure [Abstract]
 
 
 
Operating loss and tax credit carryforwards
 
 
$ 89.2 
Increase in deferred tax assets related to investment in Desert Newco
183.6 
 
 
Increase in deferred tax assets related to NOLs and credit carryforwards
36.7 
30.1 
 
Increase in deferred tax assets related to future interest deductions
3.0 
8.2 
 
Undistributed foreign earnings
$ 6.3 
 
 
Income Taxes Net Operating Losses, Credits and Incentives (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Tax Credit Carryforward [Line Items]
 
Gross NOLs, Credits and Incentives
$ 927.9 
Portion Subject to a Valuation Allowance
877.5 
Federal NOLs and credits
 
Tax Credit Carryforward [Line Items]
 
Gross NOLs, Credits and Incentives
424.6 
Portion Subject to a Valuation Allowance
396.2 
State NOLs, credits and incentives
 
Tax Credit Carryforward [Line Items]
 
Gross NOLs, Credits and Incentives
500.9 
Portion Subject to a Valuation Allowance
480.2 
Foreign NOLs
 
Tax Credit Carryforward [Line Items]
 
Gross NOLs, Credits and Incentives
2.4 
Portion Subject to a Valuation Allowance
$ 1.1 
Loss Per Share (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2016
Pro Forma
Dec. 31, 2015
Pro Forma
Dec. 31, 2014
Pro Forma
Apr. 7, 2015
Class A Common Stock
Apr. 7, 2015
Class B Common Stock
Dec. 31, 2016
Class B Common Stock
Apr. 7, 2015
Common Stock
Class A Common Stock
Dec. 31, 2015
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 
90,425 
 
26,000,000 
26,000,000 
Numerator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
$ (0.8)
$ 8.3 
$ (11.1)
$ (18.3)
$ (0.5)
$ (5.2)
$ (71.3)
$ (43.4)
$ (21.9)
$ (120.4)
$ (143.3)
 
 
 
 
 
 
 
 
Less: net loss attributable to non-controlling interests
 
 
 
 
 
 
 
 
(5.4)
(44.8)
0 
(5.4)
(73.0)
(100.1)
 
 
 
 
 
Net loss attributable to GoDaddy Inc.
$ (1.9)
$ 4.8 
$ (8.9)
$ (10.5)
$ 0.1 
$ (2.5)
$ (29.8)
$ (43.4)
$ (16.5)
$ (75.6)
$ (143.3)
$ (16.5)
$ (47.4)
$ (43.2)
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average shares of Class A common stock outstanding—basic
 
 
 
 
 
 
 
 
79,835,000 
58,676,000 
38,826,000 1
 
 
 
 
 
 
 
 
Effect of dilutive securities
 
 
 
 
 
 
 
 
0 
0 
0 
 
 
 
 
 
 
 
 
Weighted-average shares of Class A Common stock outstanding—diluted
 
 
 
 
 
 
 
 
79,835,000 
58,676,000 
38,826,000 
 
 
 
 
 
 
 
 
Net loss per share—basic and diluted (in USD per share)
 
 
 
 
 
 
 
 
$ (0.21)1
$ (0.81)1
$ (1.11)1
 
 
 
 
 
 
 
 
Conversion feature of Class B common stock, number of Class A common shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
 
 
Loss Per Share Schedule of Anti-dilutive Securities Excluded From Diluted EPS (Details)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
Antidilutive securities excluded from diluted loss per unit calculation (in shares)
13,880 
15,298 
10,519 
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)
13,517 
15,159 
10,406 
RSUs, warrants 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)
363 
139 
113 
Loss Per Share Schedule of Shares Outstanding (Details)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Class of Stock [Line Items]
 
 
Common stock outstanding (in shares)
167,112 
157,481 
Class A Common Stock
 
 
Class of Stock [Line Items]
 
 
Common stock outstanding (in shares)
88,558 
67,083 
Class B Common Stock
 
 
Class of Stock [Line Items]
 
 
Common stock outstanding (in shares)
78,554 
90,398 
Geographic Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 485.9 
$ 472.1 
$ 456.2 
$ 433.7 
$ 425.4 
$ 411.1 
$ 394.5 
$ 376.3 
$ 1,847.9 
$ 1,607.3 
$ 1,387.3 
U.S.
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
1,350.1 
1,192.6 
1,038.8 
International
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
$ 497.8 
$ 414.7 
$ 348.5 
Related Party Transactions - Tax Distributions to Desert Newco's Owners (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2016
Desert Newco, LLC
Dec. 31, 2016
Reorganization Parties and Continuing LLC Owners
Investor
Tax Receivable Agreement
Dec. 31, 2016
YAM Special Holdings, Inc
Desert Newco, LLC
Dec. 31, 2016
Silver Lake Partners
Desert Newco, LLC
Dec. 31, 2016
Kohlberg Kravis Roberts & Co LP
Desert Newco, LLC
Dec. 31, 2016
Technology Crossover Venture
Desert Newco, LLC
Dec. 31, 2016
Other Desert Newco Owners
Desert Newco, LLC
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
Assumed blended state income tax rate
 
 
7.00% 
 
 
 
 
 
 
Assumed income tax rate
 
 
46.60% 
 
 
 
 
 
 
Assumed income tax rate including tax on net investment income
 
 
50.40% 
 
 
 
 
 
 
Distributions to unit and option holders
 
 
$ 18.4 
 
$ 7.3 
$ 4.1 
$ 3.9 
$ 2.2 
$ 0.9 
Payable to related parties for tax distributions
$ 10.0 
$ 5.3 
 
$ 10.0 
 
 
 
 
 
Related Party Transactions (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Apr. 30, 2015
Sponsors
Affiliated Entity
Termination Payment for Transaction and Fee Monitoring Agreement
General and administrative expense
Apr. 30, 2015
YAM Special Holdings, Inc
Board of Directors Chairman
Special Termination Benefits
Dec. 31, 2016
Dell Inc
Affiliated Entity
Purchase and Lease of Computer Equipment, Technology Licensing, Maintenance and Support
Dec. 31, 2015
Dell Inc
Affiliated Entity
Purchase and Lease of Computer Equipment, Technology Licensing, Maintenance and Support
Dec. 31, 2014
Dell Inc
Affiliated Entity
Purchase and Lease of Computer Equipment, Technology Licensing, Maintenance and Support
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, 2014
Credit Facility
Affiliates of KKR
Affiliated Entity
Loans Held by Related Parties
Dec. 31, 2016
Term Loan Due May 2021
Term Loan
Dec. 31, 2015
Term Loan Due May 2021
Term Loan
Dec. 31, 2016
Term Loan Due May 2021
Affiliates of KKR
Affiliated Entity
Term Loan
Loans Held by Related Parties
Dec. 31, 2015
Term Loan Due May 2021
Affiliates of KKR
Affiliated Entity
Term Loan
Loans Held by Related Parties
Dec. 31, 2014
Revolving Credit Loan Due May 2019
Affiliates of KKR
Affiliated Entity
Line of Credit
Loans Held by Related Parties
Apr. 30, 2015
Note Payable Due December 2019
YAM Special Holdings, Inc
Affiliated Entity
Loans Held by Related Parties
Senior Notes
Dec. 31, 2016
Note Payable Due December 2019
YAM Special Holdings, Inc
Affiliated Entity
Senior Notes
Loans Held by Related Parties
Dec. 31, 2015
Note Payable Due December 2019
YAM Special Holdings, Inc
Affiliated Entity
Senior Notes
Loans Held by Related Parties
Dec. 31, 2014
Note Payable Due December 2019
YAM Special Holdings, Inc
Affiliated Entity
Senior Notes
Loans Held by Related Parties
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayments of principal
 
 
 
 
 
 
 
 
$ 0.1 
$ 5.3 
$ 0.2 
 
 
 
 
 
 
 
 
 
Interest and other fees
 
 
 
 
 
 
 
 
0.8 
1.4 
2.2 
 
 
 
 
 
 
 
 
 
Debt financing fees
0 
13.5 
8.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt
1,072.5 
1,083.5 
 
 
 
 
 
 
 
 
 
1,072.5 
1,083.5 
2.9 
28.8 
5.0 
 
 
 
 
Transaction and monitoring fees
 
 
 
26.7 
3.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on long-term debt
46.5 
59.1 
75.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.5 
0 
9.2 
27.0 
Purchases from related party
 
 
 
 
 
$ 15.4 
$ 17.5 
$ 16.1 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Quarterly Financial Data (Unaudited) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Total revenue
$ 485.9 
$ 472.1 
$ 456.2 
$ 433.7 
$ 425.4 
$ 411.1 
$ 394.5 
$ 376.3 
$ 1,847.9 
$ 1,607.3 
$ 1,387.3 
Operating income (loss)
17.9 
21.2 
9.7 
1.3 
12.2 
10.9 
(33.6)
(20.5)
50.1 
(31.0)
(61.9)
Net loss
(0.8)
8.3 
(11.1)
(18.3)
(0.5)
(5.2)
(71.3)
(43.4)
(21.9)
(120.4)
(143.3)
Net income (loss) attributable to GoDaddy Inc.
$ (1.9)
$ 4.8 
$ (8.9)
$ (10.5)
$ 0.1 
$ (2.5)
$ (29.8)
$ (43.4)
$ (16.5)
$ (75.6)
$ (143.3)
Net income (loss) per share—basic (in USD per share)
$ (0.02)
$ 0.06 
$ (0.11)
$ (0.15)
$ 0.00 
$ (0.04)
$ (0.46)
$ (0.34)
 
 
 
Net income (loss) per share—diluted (in USD per share)
$ (0.02)
$ 0.05 
$ (0.11)
$ (0.15)
$ 0.00 
$ (0.04)
$ (0.46)
$ (0.34)
 
 
 
Subsequent Events (Details)
0 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended
Dec. 5, 2016
EUR (€)
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Dec. 5, 2016
Host Europe Finance Co. Limited
EUR (€)
Dec. 5, 2016
Host Europe Finance Co. Limited
Bridge Loan
EUR (€)
Feb. 15, 2017
Subsequent Event
Refinanced Term Loan
Term Loan
USD ($)
Feb. 15, 2017
Subsequent Event
Refinanced Term Loan
Term Loan
USD ($)
Feb. 15, 2017
Subsequent Event
Acquisition Term Loan
Term Loan
USD ($)
Feb. 15, 2017
Subsequent Event
Acquisition Term Loan
Term Loan
USD ($)
Feb. 15, 2017
Subsequent Event
Refinanced Revolving Credit Loan
Revolving Credit Facility
Line of Credit
Feb. 15, 2017
Subsequent Event
Refinanced Revolving Credit Loan
Revolving Credit Facility
Line of Credit
USD ($)
Apr. 3, 2017
Subsequent Event
Forecast
Acquisition Term Loan
Term Loan
Feb. 15, 2017
Subsequent Event
London Interbank Offered Rate (LIBOR)
Refinanced Term Loan
Term Loan
Feb. 15, 2017
Subsequent Event
London Interbank Offered Rate (LIBOR)
Minimum
Refinanced Revolving Credit Loan
Revolving Credit Facility
Line of Credit
Feb. 15, 2017
Subsequent Event
London Interbank Offered Rate (LIBOR)
Maximum
Refinanced Revolving Credit Loan
Revolving Credit Facility
Line of Credit
Apr. 16, 2017
Subsequent Event
London Interbank Offered Rate (LIBOR)
Forecast
Acquisition Term Loan
Term Loan
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total consideration transferred
 
 
 
 
€ 1,690,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Cash consideration
 
 
 
 
605,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Net debt assumed
1,080,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity
 
 
 
 
 
500,000,000 
 
1,072,500,000 
 
1,425,000,000 
 
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% 
 
 
 
 
 
 
 
 
 
 
Proceeds from term loan
 
$ 0 
$ 0 
$ 263,800,000 
 
 
$ 1,069,800,000 
 
$ 1,421,400,000 
 
 
 
 
 
 
 
 
Interest rate
 
 
 
 
 
 
 
 
 
 
 
 
1.25% 
 
 
 
 
Basis spread on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
2.50% 
2.00% 
2.50% 
2.50%