GODADDY INC., 10-K filed on 2/21/2020
Annual Report
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Cover Page - USD ($)
 12 Months Ended
Dec. 31, 2019
Feb. 14, 2020
Jun. 30, 2019
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2019    
Document Transition Report false    
Entity File Number 001-36904    
Entity Registrant Name GoDaddy Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 46-5769934    
Entity Address, Address Line One 14455 N. Hayden Road    
Entity Address, City or Town Scottsdale    
Entity Address, State or Province AZ    
Entity Address, Postal Zip Code 85260    
City Area Code 480    
Local Phone Number 505-8800    
Title of 12(b) Security Class A Common Stock, par value $0.001 per share    
Trading Symbol GDDY    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity Public Float     $ 12,377,121,842
Documents Incorporated by Reference Portions of the registrant's Definitive Proxy Statement relating to the Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant's fiscal year ended December 31, 2019.    
Amendment Flag false    
Entity Central Index Key 0001609711    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus FY    
Class A Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   173,549,763  
Class B Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   1,347,434  
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Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Current assets:    
Cash and cash equivalents $ 1,062.8 $ 932.4
Short-term investments 23.6 18.9
Accounts and other receivables 30.2 26.4
Registry deposits 27.2 28.3
Prepaid domain name registry fees 382.6 363.2
Prepaid expenses and other current assets 48.9 58.1
Total current assets 1,575.3 1,427.3
Property and equipment, net 258.6 299.0
Operating lease assets 196.6  
Prepaid domain name registry fees, net of current portion 179.3 183.6
Goodwill 2,976.5 2,948.0
Intangible assets, net 1,097.7 1,211.5
Other assets 17.2 14.0
Total assets 6,301.2 6,083.4
Current liabilities:    
Accounts payable 72.3 61.6
Accrued expenses and other current liabilities 366.0 414.3
Deferred revenue 1,544.4 1,393.7
Long-term debt 18.4 16.6
Total current liabilities 2,001.1 1,886.2
Deferred revenue, net of current portion 654.4 623.8
Long-term debt, net of current portion 2,376.8 2,394.2
Operating lease liabilities, net of current portion 192.9  
Payable to related parties pursuant to tax receivable agreements 175.3 174.3
Other long-term liabilities 17.7 63.2
Deferred tax liabilities 100.9 117.2
Commitments and contingencies
Stockholders' equity:    
Preferred stock, $0.001 par value - 50,000 shares authorized; none issued and outstanding 0.0 0.0
Additional paid-in capital 1,003.5 699.8
Retained earnings (accumulated deficit) (153.5) 164.8
Accumulated other comprehensive loss (78.2) (72.1)
Total stockholders' equity attributable to GoDaddy Inc. 772.0 792.7
Non-controlling interests 10.1 31.8
Total stockholders' equity 782.1 824.5
Total liabilities and stockholders' equity 6,301.2 6,083.4
Class A Common Stock    
Stockholders' equity:    
Common stock 0.2 0.2
Class B Common Stock    
Stockholders' equity:    
Common stock $ 0.0 $ 0.0
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Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2019
Dec. 31, 2018
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
Class A Common Stock    
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) 172,867,000 168,549,000
Common stock outstanding (in shares) 172,867,000 168,549,000
Class B Common Stock    
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) 1,490,000 6,254,000
Common stock outstanding (in shares) 1,490,000 6,254,000
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Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenue:      
Revenue $ 2,988.1 $ 2,660.1 $ 2,231.9
Costs and operating expenses:      
Cost of revenue (excluding depreciation and amortization) [1] 1,026.8 893.9 775.5
Technology and development [1] 492.6 434.0 355.8
Marketing and advertising [1] 345.6 291.4 253.2
Customer care [1] 348.7 323.1 292.3
General and administrative [1] 362.1 334.0 282.4
Depreciation and amortization [1] 209.7 234.1 205.8
Total costs and operating expenses [1] 2,785.5 2,510.5 2,165.0
Operating income 202.6 149.6 66.9
Interest expense (92.1) (98.4) (83.0)
Loss on debt extinguishment (14.8) 0.0 (7.3)
Tax receivable agreements liability adjustment 8.7 14.9 123.2
Other income (expense), net 22.0 6.9 7.0
Income from continuing operations before income taxes 126.4 73.0 106.8
Benefit for income taxes 12.0 9.0 18.9
Income from continuing operations 138.4 82.0 125.7
Income from discontinued operations, net of income taxes 0.0 0.0 14.1
Net income 138.4 82.0 139.8
Less: net income attributable to non-controlling interests 1.4 4.9 3.4
Net income attributable to GoDaddy Inc. $ 137.0 $ 77.1 $ 136.4
Class A Common Stock      
Net income attributable to GoDaddy Inc. per share of Class A common stock—basic:      
Continuing operations (in USD per share) $ 0.79 $ 0.50 $ 1.17
Discontinued operations (in USD per share) 0 0 0.08
Net income attributable to GoDaddy Inc. (in USD per share) 0.79 0.50 1.25
Net income attributable to GoDaddy Inc. per share of Class A common stock—diluted:      
Continuing operations (in USD per share) 0.76 0.45 0.71
Discontinued operations (in USD per share) 0 0 0.08
Net income attributable to GoDaddy Inc. (in USD per share) $ 0.76 $ 0.45 $ 0.79
Weighted-average shares of Class A common stock outstanding:      
Basic (in shares) 173,431 155,234 108,779
Diluted (in shares) 181,721 181,353 177,054
Domains      
Revenue:      
Revenue $ 1,351.6 $ 1,220.3 $ 1,057.2
Hosting and presence      
Revenue:      
Revenue 1,126.5 1,017.6 847.9
Business applications      
Revenue:      
Revenue $ 510.0 $ 422.2 $ 326.8
[1]
(1) Costs and operating expenses include equity-based compensation expense as follows:
Cost of revenue$0.4  $—  $—  
Technology and development$70.3  $57.8  $37.1  
Marketing and advertising15.4  10.3  7.3  
Customer care9.3  6.2  3.6  
General and administrative51.6  51.2  28.4  
Total equity-based compensation expense$147.0  $125.5  $76.4  
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Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Equity-based compensation expense $ 147.0 $ 125.5 $ 76.4
Cost of revenue      
Equity-based compensation expense 0.4 0.0 0.0
Technology and development      
Equity-based compensation expense 70.3 57.8 37.1
Marketing and advertising      
Equity-based compensation expense 15.4 10.3 7.3
Customer care      
Equity-based compensation expense 9.3 6.2 3.6
General and administrative      
Equity-based compensation expense $ 51.6 $ 51.2 $ 28.4
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Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Statement of Comprehensive Income [Abstract]      
Net income $ 138.4 $ 82.0 $ 139.8
Foreign exchange forward contracts gain (loss), net (2.7) 8.9 (9.3)
Unrealized swap gain (loss), net 0.8 14.2 (39.2)
Change in foreign currency translation adjustment 37.7 (5.5) (86.5)
Comprehensive income 174.2 99.6 4.8
Less: comprehensive income (loss) attributable to non-controlling interests 2.2 8.9 (43.2)
Comprehensive income attributable to GoDaddy Inc. $ 172.0 $ 90.7 $ 48.0
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Consolidated Statements of Stockholders' Equity Statement - USD ($)
shares in Thousands, $ in Millions
Total
Class A Common Stock
Class B Common Stock
Common Stock
Class A Common Stock
Common Stock
Class B Common Stock
Additional Paid-in Capital
Retained Earnings (Accumulated Deficit)
Accumulated Other Comprehensive Income (Loss)
Non- Controlling Interests
Equity at beginning of period at Dec. 31, 2016 $ 714.2     $ 0.1 $ 0.1 $ 608.3 $ (48.7) $ 2.7 $ 151.7
Equity at beginning of period (in shares) at Dec. 31, 2016       88,558 78,554        
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income 139.8           136.4   3.4
Equity-based compensation, including amounts capitalized 76.4         76.4      
Sales of Class A common stock, net of issuance costs 21.3         21.3      
Sales of Class A common stock, net of issuance costs (in shares)       721          
Stock option exercises 61.1         80.9     (19.8)
Stock option exercises (in shares)       6,000          
Issuances of Class A common stock under employee stock purchase plan 17.4         17.4      
Issuances of Class A common stock under employee stock purchase plan (in shares)       572          
Repurchases of shares (275.0)         (275.0)      
Repurchases of shares (in shares)         (7,345)        
Effect of exchanges of LLC units (0.1)       $ (0.1) 28.7     (28.7)
Effect of exchanges of LLC Units (in shares)       36,203 (36,203)        
Liability pursuant to the tax receivable agreements resulting from the pre-IPO organizational transactions (73.6)         (73.6)      
Impact of derivatives, net (48.5)             (48.5)  
Change in foreign currency translation adjustment (86.5)             (86.5)  
Accumulated other comprehensive income (loss) attributable to non-controlling interests 0.0             46.6 (46.6)
Vesting of restricted stock units 0.0                
Vesting of restricted stock units (in shares)       939          
Equity at end of period at Dec. 31, 2017 546.5     $ 0.1 $ 0.0 484.4 87.7 (85.7) 60.0
Equity at end of period (in shares) at Dec. 31, 2017       132,993 35,006        
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income 82.0           77.1   4.9
Equity-based compensation, including amounts capitalized 125.5         125.5      
Sales of Class A common stock, net of issuance costs 0.0                
Sales of Class A common stock, net of issuance costs (in shares)       8          
Stock option and warrant exercises (in shares)       4,782          
Stock option and warrant exercises 67.2     $ 0.1   76.3     (9.2)
Issuances of Class A common stock under employee stock purchase plan 21.9         21.9      
Issuances of Class A common stock under employee stock purchase plan (in shares)       469          
Effect of exchanges of LLC units 0.0         27.9     (27.9)
Effect of exchanges of LLC Units (in shares)       28,752 (28,752)        
Liability pursuant to the tax receivable agreements resulting from the pre-IPO organizational transactions (36.2)         (36.2)      
Impact of derivatives, net 23.1             23.1  
Change in foreign currency translation adjustment (5.5)             (5.5)  
Accumulated other comprehensive income (loss) attributable to non-controlling interests 0.0             (4.0) 4.0
Vesting of restricted stock units 0.0                
Vesting of restricted stock units (in shares)       1,545          
Equity at end of period at Dec. 31, 2018 824.5     $ 0.2 $ 0.0 699.8 164.8 (72.1) 31.8
Equity at end of period (in shares) at Dec. 31, 2018   168,549 6,254 168,549 6,254        
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income 138.4           137.0   1.4
Equity-based compensation, including amounts capitalized 149.2         149.2      
Sales of Class A common stock, net of issuance costs 0.0                
Sales of Class A common stock, net of issuance costs (in shares)       8          
Stock option exercises 70.7         74.9     (4.2)
Stock option exercises (in shares)       3,976          
Issuances of Class A common stock under employee stock purchase plan 28.5         28.5      
Issuances of Class A common stock under employee stock purchase plan (in shares)       508          
Repurchases of shares (458.6)           (458.6)    
Repurchases of shares (in shares)       (7,125)          
Effect of exchanges of LLC units 0.0         9.1   (2.6) (6.5)
Effect of exchanges of LLC Units (in shares)       4,764 (4,764)        
Liability pursuant to the tax receivable agreements resulting from the pre-IPO organizational transactions (9.7)         (9.7)      
Impact of derivatives, net (1.9)             (1.9)  
Change in foreign currency translation adjustment 37.7             37.7  
Accumulated other comprehensive income (loss) attributable to non-controlling interests 0.0             (0.8) 0.8
Vesting of restricted stock units 0.0                
Vesting of restricted stock units (in shares)       2,187          
Adjustment to prior period non-controlling interests allocations 0.0         51.7   (38.5) (13.2)
Equity at end of period at Dec. 31, 2019 $ 782.1     $ 0.2 $ 0.0 $ 1,003.5 $ (153.5) $ (78.2) $ 10.1
Equity at end of period (in shares) at Dec. 31, 2019   172,867 1,490 172,867 1,490        
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Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Operating activities      
Net income $ 138.4 $ 82.0 $ 139.8
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 209.7 234.1 205.8
Equity-based compensation 147.0 125.5 76.4
Loss on debt extinguishment 14.8 0.0 7.3
Tax receivable agreements liability adjustment (8.7) (14.9) (123.2)
Gain on sale of discontinued operations 0.0 0.0 (33.2)
Other 32.7 (11.4) (21.2)
Changes in operating assets and liabilities, net of amounts acquired:      
Registry deposits 1.1 6.2 (10.1)
Prepaid domain name registry fees (15.1) (15.9) (13.5)
Accounts payable 13.6 (3.4) (8.4)
Accrued expenses and other current liabilities 40.4 14.9 32.6
Deferred revenue 179.5 158.0 220.0
Other operating assets and liabilities (30.0) (15.3) 3.3
Net cash provided by operating activities 723.4 559.8 475.6
Investing activities      
Purchases of short-term investments (64.1) (24.8) (28.3)
Maturities of short-term investments 59.9 18.5 22.6
Business acquisitions, net of cash acquired (40.3) (147.2) (1,876.9)
Purchases of intangible assets (4.7) (9.3) (52.0)
Net proceeds from sale of discontinued operations, including post-closing adjustments 0.0 (4.3) 447.7
Purchases of property and equipment (87.6) (87.7) (83.2)
Other investing activities, net 1.5 0.0 0.0
Net cash used in investing activities (135.3) (254.8) (1,570.1)
Proceeds received from:      
Issuance of Senior Notes 600.0 0.0 0.0
Stock option exercises 70.7 67.2 61.1
Issuances of Class A common stock under employee stock purchase plan 28.5 21.9 17.4
Debt issued to finance HEG acquisition 0.0 0.0 1,953.1
Sales of Class A common stock, net of issuance costs 0.0 0.0 22.9
Payments made for:      
Repayment of term loans (625.0) (25.0) (15.3)
Repurchases of Class A common stock (458.6) 0.0 0.0
Contingent consideration for business acquisitions (54.8) (10.4) (1.2)
Financing-related costs (13.2) 0.0 (39.7)
Repurchases of LLC Units and distributions to holders of LLC Units 0.0 0.0 (285.0)
Repayment of HEG acquisition bridge financing 0.0 0.0 (596.6)
Other financing obligations (4.5) (6.7) (9.2)
Net cash provided by (used in) financing activities (456.9) 47.0 1,107.5
Effect of exchange rate changes on cash and cash equivalents (0.8) (2.3) 3.6
Net increase in cash and cash equivalents 130.4 349.7 16.6
Cash and cash equivalents, beginning of period 932.4 582.7 566.1
Cash and cash equivalents, end of period 1,062.8 932.4 582.7
Cash paid during the period for:      
Interest on long-term debt, net of swap benefit 80.3 84.1 88.3
Income taxes, net of refunds received 6.1 22.8 16.6
Supplemental information for non-cash investing and financing activities:      
Acquisition date fair value of contingent consideration 0.0 45.6 14.8
Accrued capital expenditures at period end 7.4 21.9 7.4
Landlord paid tenant improvements included in purchases of property and equipment $ 11.2 $ 4.1 $ 0.0
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Organization and Background
 12 Months Ended
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Background Organization and Background
Description of Business
We deliver simple, easy-to-use cloud-based products and outcome-driven, personalized guidance, which enables our customers to establish a digital presence, connect with their customers and manage their presence.
Organization
We are the sole managing member of Desert Newco, LLC and its subsidiaries (Desert Newco), and as a result, we consolidate its financial results and report non-controlling interests representing the economic interests held by its other members. The calculation of non-controlling interests excludes any net income attributable directly to GoDaddy Inc. We owned approximately 99% of Desert Newco's limited liability company units (LLC Units) as of December 31, 2019.
Basis of Presentation
Our 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.
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 relative stand-alone selling price of the indicated performance obligations included in revenue arrangements with multiple performance obligations;
•the fair value of assets acquired and liabilities assumed in business acquisitions;
•the fair value of contingent consideration arrangements;
•the assessment of recoverability of long-lived assets;
•the estimated reserve for refunds;
•the estimated useful lives of intangible and depreciable assets;
•the grant date fair value of equity-based awards;
•the fair value of financial instruments;
•the recognition, measurement and valuation of current and deferred income taxes;
•the recognition and measurement of amounts payable under tax receivable agreements (TRAs); and
•the recognition and measurement of loss contingencies, indirect tax liabilities and certain accrued liabilities.
We periodically evaluate our estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual results may differ.
Segment
As of December 31, 2019, our chief operating decision maker function was comprised of our Chief Executive Officer who reviews 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 and reportable segment.
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Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
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 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 $25.4 million and $26.3 million at December 31, 2019 and 2018, respectively.
Short-Term Investments
Our short-term investments consist of various instruments with a remaining maturity in excess of 90 days at the date of acquisition, which are carried at fair value. The estimated fair value of our short-term investments is determined based on quoted market prices and approximated historical cost. We did not have any material realized or unrealized gains or losses on sales of short-term investments during any of the periods presented.
We classify our short-term investments as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell our short-term investments at any time for use in current operations or for other purposes, such as consideration for acquisitions, even if they have not yet reached maturity. As a result, we classify our short-term investments, including investments with maturities beyond 12 months, as current assets.
Registry Deposits
Registry deposits represent amounts on deposit with, or receivable from, various domain name registries to be used by us to make payments for future domain registrations or renewals.
Prepaid Domain Name Registry Fees
Prepaid domain name registry fees represent amounts charged by a registry at the time a domain is registered or renewed. These amounts are amortized to cost of revenue over the same period revenue is recognized for the related domain registration contracts.
Property and Equipment
Property and equipment is stated at cost. Depreciation 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,
20192018
Computer equipment3 years$434.8  $417.6  
Software3 years55.9  40.5  
LandIndefinite9.0  9.0  
Buildings, including improvements
5-40 years
145.5  175.0  
Leasehold improvementsLesser of useful life or remaining lease term99.4  70.8  
Other
1-20 years
25.7  27.0  
Total property and equipment770.3  739.9  
Less: accumulated depreciation and amortization(511.7) (440.9) 
Property and equipment, net$258.6  $299.0  
Depreciation and amortization expense related to property and equipment was $86.5 million, $97.4 million and $88.8 million during 2019, 2018 and 2017, respectively.
Capitalized Internal-Use Software Costs
Costs incurred to develop software for internal-use during the application development phase 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. During 2019, we capitalized $13.4 million of such costs to property and equipment. Capitalized costs were not material in 2018.
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 and our 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 reportable segment and our indefinite-lived trade names and branding during the fourth quarter of each year. We also perform an assessment at other times if events or changes in circumstances indicate the carrying value of the assets may not be recoverable. If, based on qualitative analysis, we determine it is more-likely-than-not the fair value of our reporting unit is less than its carrying amount, a quantitative impairment test is performed. Our qualitative analysis did not indicate impairment during any of the periods presented.
Our indefinite-lived domain portfolio is reviewed for impairment annually during the fourth quarter of each year. We also perform an assessment at other times if events or changes in circumstances indicate the carrying amount of the asset may not be fully recoverable. Any identified impairment loss is treated as a permanent reduction in the carrying amount of the asset. We did not record an impairment loss during any of the periods presented.
Long-Lived and Finite-Lived Intangible Assets
Finite-lived intangible assets are amortized over the following estimated useful lives:
Customer relationships
2-9 years
Developed technology
2-7 years
Trade names and other
4-10 years
Our finite-lived intangible assets are primarily amortized on a straight-line basis. We annually 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. Our analysis did not indicate impairment during any of the periods presented, and accordingly, we did not record any impairment loss.
Debt Issuance Costs
We defer and amortize issuance costs, underwriting fees and related expenses incurred in connection with the issuance of debt instruments using the effective interest method over the terms of the respective instruments. Debt issuance costs, other than those associated with our revolving credit loan, are reflected as a direct reduction of the carrying amount of the related debt liability. Debt issuance costs related to our revolving credit loan are reflected as an asset.
Derivative Financial Instruments
We are exposed to changes in foreign currency exchange rates as well as changes in interest rates associated with our variable-rate debt. Consequently, we use derivative financial instruments to manage and mitigate such risks. We do not enter into derivative transactions for speculative or trading purposes.
Our derivative financial instruments include foreign exchange forward contracts with financial institutions to hedge certain forecasted sales transactions denominated in currencies other than the United States (U.S.) dollar. In addition, we have entered into an interest rate swap on a portion of our long-term debt and a cross-currency swap on certain of our intercompany debt to manage the variability of cash flows due to movements in interest rates and foreign currency exchange rates. We have designated each of these instruments as a cash flow hedge.
We expect each derivative instrument qualifying for hedge accounting will be highly effective at reducing the risk associated with the exposure being hedged. For each derivative instrument designated as a hedge, we formally document the related risk management strategy and objective, including identification of the hedging instrument, the hedged item and the risk of exposure, as well as how hedge effectiveness will be assessed prospectively and retrospectively over the instrument's term. To assess effectiveness of our swap instruments, we use regression analysis performed utilizing the Hypothetical Derivative Method to compare the change in fair value of the derivative instrument designated as the hedging instrument to the change in the fair value of a similarly modeled hypothetical derivative using the same discount rate. Following our initial quantitative assessment, we may perform subsequent assessments on a qualitative basis unless facts and circumstances change such that we can no longer qualitatively assert that our hedges are highly effective.
We reflect unrealized gains or losses on our cash flow hedges as a component of accumulated other comprehensive income (loss) (AOCI). Gains and losses, once realized, are recorded as a component of AOCI and are amortized to earnings over the same period in which the underlying hedged amounts are recognized. At inception, and each reporting period, we evaluate the effectiveness of each of our hedges, and all hedges were determined to be effective.
Our derivative instruments are recorded at fair value on a gross basis. For cash flow reporting purposes, proceeds received or amounts paid upon the settlement of a derivative instrument are classified in the same manner as the related item being hedged, primarily within cash flows from operating activities.
Leases
We lease office and data center space in various locations. Prior to our adoption of the new lease standard on January 1, 2019, rent expense under operating leases was recognized on a straight-line basis over the lease term taking into consideration rent abatements, scheduled rent increases and any lease incentives.
Adoption of New Standard on Leases
On January 1, 2019, we adopted the Financial Accounting Standards Board's (FASB) new lease accounting standard using a modified retrospective transition and recorded a $3.3 million cumulative-effect adjustment to beginning retained earnings (the effective date method). Under the effective date method, comparative period financial information is not adjusted. The new standard requires lessees to recognize a right-of-use (ROU) asset and lease liability on the balance sheet for operating
leases while the accounting for finance leases is substantially unchanged. We recognized $111.3 million and $108.0 million of additional assets and liabilities, respectively, upon adoption of the new standard. The impact to deferred taxes was immaterial.
The increases to assets and liabilities resulting from the recognition of ROU assets and operating lease liabilities included the derecognition of existing assets and liabilities related to leases. The most significant impact resulted from the derecognition of our lease financing obligation and related building asset. At adoption, we were required to reassess whether the failed sale-leaseback transaction that resulted in our previous recognition of a lease financing obligation and related building asset would have met the sale criteria under the new standard. We concluded that the sale criteria would have been met and recognized a $3.3 million adjustment to beginning retained earnings as a result of the derecognition of the lease financing obligation and related building asset. The previously recognized lease financing obligation is now classified as an operating lease and was included in the initial measurement of the ROU assets and operating lease liabilities.
We have adopted the package of practical expedients allowing us to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. Adoption of this standard did not have a material impact to our statements of operations or cash flows.
We determine whether a contract contains a lease at contract inception. We have lease agreements with lease and non-lease components and have elected the practical expedient to account for such components as a single lease component. This election must be made by class of underlying asset and was elected for our leases of office space, data center space and server equipment. We initially recognize and measure contracts containing a lease and determine lease classification at commencement. ROU assets and operating lease liabilities are measured based on the estimated present value of lease payments over the lease term. In determining the present value of lease payments, we use our estimated incremental borrowing rate when the rate implicit in the lease cannot be readily determined. The estimated incremental borrowing rate is based upon information available at lease commencement including publicly available data for debt instruments. The lease term includes periods covered by options to extend when it is reasonably certain we will exercise such options as well as periods subsequent to an option to terminate the lease if it is reasonably certain we will not exercise the termination option. Operating lease costs are recognized on a straight-line basis over the lease term while finance leases result in a front-loaded expense pattern. Variable lease costs are recognized as incurred. On our balance sheets, assets and liabilities associated with operating leases are included within operating lease assets, accrued expenses and other current liabilities and operating lease liabilities. Assets and liabilities associated with finance leases are included in property and equipment, net, accrued expenses and other current liabilities and other long-term liabilities.
See Note 12 for additional information regarding leases.
Foreign Currency
Our functional and reporting currency is the U.S. dollar. Assets denominated in foreign currencies are remeasured into U.S. dollars at period-end exchange rates. Foreign currency-based revenue and expense transactions are measured at transaction date exchange rates. Foreign currency remeasurement gains and losses are recorded in other income (expense), net and were $(7.1) million, $(10.4) million and $(1.5) million during 2019, 2018 and 2017, respectively.
For certain of our foreign subsidiaries whose functional currency is other than the U.S. dollar, we translate revenue and expense transactions at average exchange rates. We translate assets and liabilities at period-end exchange rates and include foreign currency translation gains and losses as a component of AOCI.
Revenue Recognition
Revenue is recognized when control of the promised product or service (product) is transferred to our customers, in an amount reflecting the consideration we expect to be entitled to in exchange for such product.
We typically receive payment at the time of sale, the purpose of which is to provide our customers with a simplified and predictable way of purchasing our products. We have determined that our contracts do not include a significant financing component. Payments received in advance of our performance are recorded as deferred revenue. Revenue is recognized net of allowances for returns and applicable transaction-based taxes collected from customers.
Our products are generally sold with a right of return within our policy, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Refunds are estimated at contract inception using the expected value method based on historical refund experience and updated each reporting period as additional information becomes available and only to the extent it is probable a significant reversal of any incremental revenue will not occur. Refunds result in a reduced amount of revenue recognized over the contract term of the applicable product.
Our revenue is categorized and disaggregated as reflected in our statements of operations, as follows:
Domains. Domains revenue primarily consists of domain registrations and renewals, domain privacy, domain application fees, domain back-orders, aftermarket domain sales and fee surcharges paid to ICANN. Consideration is recorded as deferred revenue when received, which is typically at the time of sale, and revenue, other than for aftermarket domain sales, is recognized ratably over the period in which the performance obligations are satisfied, which is generally over the contract term. Aftermarket domain revenue is recognized at the time when ownership of the domain is transferred to the buyer.
Hosting and presence. Hosting and presence revenue primarily consists of website hosting products, website building products, website security products and online visibility products. Consideration is recorded as deferred revenue when received, which is typically at the time of sale, and revenue is recognized ratably over the period in which the performance obligations are satisfied, which is generally over the contract term.
Business applications. Business applications revenue primarily consists of third-party productivity applications, email accounts, email marketing tools and telephony solutions. Consideration is recorded as deferred revenue when received, which is typically at the time of sale, and revenue is recognized ratably over the period in which the performance obligations are satisfied, which is generally over the contract term.
See Note 8 for additional information regarding our deferred revenue. See Note 18 for our revenue disaggregated by geography.
Performance Obligations
Our contracts with customers may include multiple performance obligations, including a combination of some or all of the following products: domain registrations, website hosting products, website building products, website security products and other cloud-based products. Judgment may be required in determining whether products are considered distinct performance obligations that should be accounted for separately or as one combined performance obligation. Revenue is recognized ratably over the period in which the performance obligations are satisfied, which is generally over the contract term.
For each domain registration or renewal we provide, we have one performance obligation to our customers consisting of two promises: 1) to ensure the exclusive use of the domain during the applicable registration term and 2) to ensure the domain is accessible and appropriately directed to its underlying content. After the contract term expires, unless renewed, the customer can no longer access or use the domain. We have determined these promises are not distinct within the context of our contracts as they are highly interdependent and interrelated and are inputs to a combined benefit. Accordingly, we concluded that each domain registration or renewal represents one product offering and is a single performance obligation.
We may also offer specific arrangements, such as our Websites + Marketing solution, in which we include promises to transfer multiple performance obligations in a single product offering. For such arrangements, we allocate the transaction price to each of the underlying distinct performance obligations based on its relative stand-alone selling price (SSP), as described below.
We have determined that generally each of our other products constitutes an individual product offering to our customers, and therefore have concluded that each is a single performance obligation.
For arrangements with multiple performance obligations, we allocate revenue to each distinct performance obligation based on its relative SSP. We use judgment to determine SSP based on prices charged to customers for individual products, taking into consideration factors including historical and expected discounting practices, the size, volume and term length of transactions, customer demographics, the geographic areas in which our products are sold and our overall go-to-market strategy.
Principal versus Agent Considerations
We sell our products 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 our determination as to whether we act as principal or agent in the transaction. Revenue associated with sales through our network of resellers, for certain aftermarket domain sales and for third-party offerings is recorded on a gross basis as we have determined that we control the product before transferring it to our end customers.
Assets Recognized from Contract Costs
Commissions paid to our resellers represent an incremental cost of obtaining a contract with a customer. We capitalize and amortize such amounts to cost of revenue consistent with the pattern of transfer of the product to which the asset relates. Amounts capitalized and amortized were not material during any of the periods presented.
Fees paid to various registries at the inception of a domain registration or renewal represent costs to fulfill a contract. We capitalize and amortize these prepaid domain name registry fees to cost of revenue consistent with the pattern of transfer of the product to which the asset relates. Amortization expense of such asset was $614.7 million, $597.1 million and $554.4 million during 2019, 2018 and 2017, respectively.
No other material contract costs were capitalized during any of the periods presented.
Operating Expenses
Cost of Revenue (excluding depreciation and amortization)
Costs of revenue are the direct costs we incur in connection with selling an incremental product to our customers. Substantially all cost of revenue relates to domain registration fees paid to the various domain registries, payment processing fees, third-party commissions and licensing fees for third-party productivity applications.
Technology and Development
Technology and development expenses represent the costs associated with the creation, development and distribution of our products and websites. These expenses primarily consist of personnel costs associated with the design, development, deployment, testing, operation and enhancement of our products, as well as costs associated with the data centers and systems infrastructure supporting those products, excluding depreciation expense.
Marketing and Advertising
Marketing and advertising expenses represent the costs associated with attracting and acquiring customers, primarily consisting of fees paid to third parties for marketing and advertising campaigns across a variety of channels. These expenses also include personnel costs and affiliate program commissions.
Advertising costs are expensed either as incurred, at the time a commercial initially airs or when a promotion first appears in the media. Advertising expenses were $260.0 million, $231.1 million and $205.8 million during 2019, 2018 and 2017, respectively. Prepaid advertising, which is included within prepaid expenses and other current assets, was $6.3 million and $9.7 million at December 31, 2019 and 2018, respectively.
Customer Care
Customer care expenses represent the costs to guide and service our customers, primarily consisting of personnel costs.
General and Administrative
General and administrative expenses primarily consist of personnel costs for our administrative functions, professional service fees, office rent for all locations, all employee travel expenses, acquisition-related expenses and other general costs.
Equity-Based Compensation
We grant stock 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 restricted stock units (RSUs) vesting solely upon the continued service of the recipient as well as awards vesting upon the achievement of annual or cumulative financial-based targets (PSUs). We recognize the accounting 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, we recognize expense separately for each vesting tranche. We also estimate when and if PSUs will be earned. If an award is not considered probable of being earned, no amount of expense is recognized. If the award is deemed probable of being earned, expense is recorded over the estimated service period.
Equity-based awards are accounted for using the fair value method. RSUs and PSUs are measured based on the fair market value of the underlying common stock on their respective accounting grant dates. Grant date fair values for options are determined using the Black-Scholes option pricing model and a single option award approach. The accounting grant date for PSUs is the date on which the applicable performance criteria are approved by our board of directors (the Board). The fair value of shares issued under our employee stock purchase plan is estimated on the first day of each offering period using the Black-Scholes option pricing model. We utilize an estimate of future award forfeitures, which is based on historical data, in our equity-based compensation expense calculations. We regularly estimate when and if PSUs will be earned and record expense only for awards considered probable of being earned.
Key assumptions used in the determination of fair value for 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 volatility of our Class A common stock and the historical volatilities of a peer group. 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,
201920182017
Expected term (in years)6.16.16.1
Expected volatility31.2 %31.5 %37.4 %
Risk-free interest rate2.2 %2.7 %2.0 %
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 our initial public offering (IPO) in 2015, we became a party to five TRAs with our pre-IPO owners. Under four of the TRAs, we are generally required to pay to certain pre-IPO owners approximately 85% of the amount of calculated tax savings, if any, we are deemed to realize (using the actual applicable U.S. federal income tax rate and an assumed combined state and local income tax rate) as a result of (1) any existing tax attributes associated with LLC Units acquired in the pre-IPO organizational transactions, the benefit of which is allocable to us as a result of such transactions (including the allocable share of Desert Newco's existing tax basis in its assets), (2) net operating loss (NOL) carryforwards available as a result of such transactions and (3) tax benefits related to imputed interest.
Under the fifth of these agreements, we are generally required to pay our other pre-IPO owners of approximately 85% of the amount of the calculated tax savings, if any, we are deemed to realize (using the actual applicable U.S. federal income tax rate and an assumed combined state and local income tax rate) as a result of (1) any step-up in tax basis created as a result of exchanges of their LLC Units (together with the corresponding shares of Class B common stock) for shares of our Class A common stock, (2) any existing tax attributes associated with their LLC Units, the benefit of which is allocable to us as a result of such exchanges (including the allocable share of Desert Newco's existing tax basis in its assets), (3) tax benefits related to imputed interest and (4) payments under the TRAs.
When LLC Units are exchanged, we receive certain tax attributes, including the original basis adjustments (the OBAs) created from the original acquisition of the LLC Units plus any anticipated basis adjustments. The OBAs entitle us to the depreciation and amortization previously allocable to the original owner of such units. The anticipated basis adjustments will increase, for tax purposes, our depreciation and amortization deductions. To the extent these deductions are used to reduce our taxable income, thereby resulting in actual tax savings, we will be required to pay the original owners approximately 85% of such savings, which is recorded as an additional liability under the TRAs when deemed probable. Adjustments to the liability under the TRAs based on changes in anticipated future taxable income are recorded in our statements of operations.
Unutilized depreciation and amortization deductions related to the OBAs and the anticipated basis adjustments are converted to NOL carryforwards. If the utilization is considered to be more-likely-than-not, a liability under the TRAs relating to NOL carryforwards is recorded.
Fair Value Measurements
Fair value is defined as an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. The framework for measuring fair value provides a three-tier hierarchy prioritizing inputs to valuation techniques used in measuring fair value as follows:
Level 1— Observable inputs such as quoted prices for identical assets or liabilities in active markets;
Level 2— Inputs, other than quoted prices for identical assets or liabilities in active markets, which are observable either directly or indirectly; and
Level 3— Unobservable inputs in which there is little or no market data requiring the reporting entity to develop its own assumptions.
We hold certain assets required to be measured at fair value on a recurring basis. These may include reverse repurchase agreements, commercial paper or other securities, which are classified as either cash and cash equivalents or short-term investments. We classify these assets within Level 1 or Level 2 because we use either quoted market prices or alternative pricing sources utilizing market observable inputs to determine their fair value. In addition, Level 2 assets and liabilities include derivative financial instruments associated with hedging activity, as further discussed in Note 11. Derivative financial instruments are measured at fair value on the contract date and are subsequently remeasured each reporting period using inputs such as spot rates, discount rates and forward rates. There are not active markets for the hedge contracts themselves; however, the inputs used to calculate the fair value of the instruments are tied to active markets.
The following tables set forth assets and liabilities measured at fair value on a recurring basis:
December 31, 2019
Assets:Level 1Level 2Level 3Total
Cash and cash equivalents:
Reverse repurchase agreements(1)
$—  $70.0  $—  $70.0  
Commercial paper—  102.0  —  102.0  
Money market funds and time deposits444.0  —  —  444.0  
Short-term investments:
Commercial paper and other0.7  22.9  —  23.6  
Total assets measured and recorded at fair value$444.7  $194.9  $—  $639.6  
Liabilities:
Contingent consideration liabilities$—  $—  $2.6  $2.6  
Derivative liabilities—  93.8  —  93.8  
Total liabilities measured and recorded at fair value$—  $93.8  $2.6  $96.4  
_________________________________
(1) Reverse repurchase agreements include a $70.0 million repurchase agreement with Morgan Stanley, callable with 31 days notice.
December 31, 2018
Assets:Level 1Level 2Level 3Total
Cash and cash equivalents:
Reverse repurchase agreements(1)
$—  $70.0  $—  $70.0  
Commercial paper—  71.4  —  71.4  
Money market funds338.6  —  —  338.6  
Short-term investments:
Commercial paper and other1.0  18.0  —  19.0  
Total assets measured and recorded at fair value$339.6  $159.4  $—  $499.0  
Liabilities:
Contingent consideration liabilities$—  $—  $67.9  $67.9  
Derivative liabilities—  120.5  —  120.5  
Total liabilities measured and recorded at fair value$—  $120.5  $67.9  $188.4  
_________________________________
(1) Reverse repurchase agreements include a $70.0 million repurchase agreement with Morgan Stanley, callable with 31 days notice.
Our contingent consideration liabilities, which relate to future earn-out payments associated with our business acquisitions, are classified within Level 3 and valued using discounted cash flow valuation methods encompassing significant unobservable inputs. The inputs include estimated operating results scenarios for the applicable performance periods, probability weightings assigned to operating results scenarios (generally assessed at 100% probability) and the discount rates applied (generally ranging from 14% to 25%). The fair values of our contingent consideration arrangements are sensitive to changes in forecasts and discount rates. A reconciliation of these liabilities is as follows:
Year Ended December 31,
20192018
Balance at beginning of period$67.9  $20.7  
Acquisition date fair value of contingent consideration—  45.6  
Adjustments to fair value recognized in earnings2.6  11.9  
Contingent consideration payments(68.2) (11.2) 
Impact of foreign currency translation and other0.3  0.9  
Balance at end of period$2.6  $67.9  
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 a service disruption or disaster at any of our data center facilities. We serve our customers and users from data center facilities operated either by us or third parties, which are located in Arizona, California, Missouri, Virginia, New York, France, Germany, the Netherlands, Singapore and the United Kingdom (U.K.). 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
In June 2016, the FASB issued new guidance for the accounting for credit losses on instruments that will require entities to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial instruments measured at amortized cost and also applies to some off-balance sheet credit exposures. We do not expect our adoption of this guidance on January 1, 2020 to have a material impact.
In January 2017, the FASB issued new guidance simplifying the goodwill impairment test, eliminating the requirement for an entity to determine the fair value of its assets and liabilities (including unrecognized assets and liabilities) at the impairment testing date following the procedure that would be required in determining the fair value of assets acquired and
liabilities assumed in a business combination. Instead, an entity will be required to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity will be required to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. Our adoption of this guidance on January 1, 2019 did not have a material impact.
In August 2018, the FASB issued new guidance to modify or eliminate certain fair value disclosures and require additional disclosures for Level 3 measurements. We do not expect our adoption of this guidance on January 1, 2020 to have a material impact.
In August 2018, the FASB issued new guidance aligning the accounting for implementation costs incurred in cloud computing arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We plan to adopt this guidance prospectively on January 1, 2020 and do not expect a material impact at adoption.
In December 2019, the FASB issued new guidance to simplify the accounting for income taxes primarily by eliminating certain exceptions allowable under the existing guidance related to the approach for intraperiod tax allocations, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The guidance is effective for annual and interim reporting periods beginning after December 15, 2020, with early adoption permitted. We are currently evaluating the timing of our adoption and the expected impact of this new guidance.
v3.19.3.a.u2
Business Acquisitions
 12 Months Ended
Dec. 31, 2019
Business Combinations [Abstract]  
Business Acquisitions Business Acquisitions
2018 Acquisition of Main Street Hub
In July 2018, we completed the acquisition of Main Street Hub (MSH), a social media and reputation management company, for total purchase consideration of $182.0 million, including contingent earn-out payments of up to a maximum of $50.0 million subject to the achievement of certain revenue and operational milestones. The acquisition was completed to further our professional services strategy for our customers. The contingent consideration was recorded at an estimated acquisition date fair value of $43.4 million. The acquisition was not material to our results of operations.
The purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess recorded to goodwill. The recognition of goodwill, none of which is deductible for income tax purposes, was made based on the strategic and synergistic benefits we expect to realize from the acquisition.
The following table summarizes the final estimated acquisition date fair values of the MSH assets acquired and liabilities assumed:
Total purchase consideration$182.0  
Fair value of assets acquired and liabilities assumed:
Cash and cash equivalents8.0  
Intangible assets, net35.7  
Other assets and liabilities, net3.2  
Total assets acquired, net of liabilities assumed46.9  
Goodwill$135.1  
Identified finite-lived intangible assets, which were valued using income-based approaches, consist primarily of developed technology and customer relationships. The acquired finite-lived intangible assets have a total weighted-average amortization period of 4.3 years.
2017 Acquisition of Host Europe Holdings Limited
In April 2017, we completed the acquisition of Host Europe Holdings Limited (HEG), a U.K.-based provider of domains, website hosting, applications hosting and managed hosting to small and medium-sized customers throughout Europe. Pursuant to the terms of the purchase agreement, we purchased all of the outstanding shares of HEG and certain loan notes issued by Host Europe Finance Co. Ltd. for total consideration transferred of €1.7 billion. We funded the acquisition with debt financing, as described in Note 10, and incurred $18.6 million in nonrecurring transaction costs in connection with the acquisition, which were recognized within general and administrative expense. As a result of the acquisition, HEG became our wholly-owned subsidiary. We believe the acquisition allowed us to leverage HEG's existing footprint to accelerate our expansion in Europe through the delivery of a broader range of cloud-based products.
Our operating results include HEG's results from the closing date. The purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess recorded to goodwill. The recognition of goodwill, none of which is deductible for income tax purposes, was made based on the strategic and synergistic benefits we expect to realize from the acquisition.
The following table summarizes the final estimated acquisition date fair values of the HEG assets acquired and liabilities assumed:
Total purchase consideration(1)
$1,849.5  
Fair value of assets acquired:
Cash and cash equivalents27.2  
Other current assets66.3  
Assets held for sale(2)
497.5  
Property and equipment, net61.9  
Intangible assets, net595.7  
Other assets9.3  
Amount attributable to assets acquired1,257.9  
Fair value of liabilities assumed:
Accounts payable and accrued expenses65.1  
Current portion of deferred revenue45.5  
Liabilities directly associated with the assets held for sale(2)
93.0  
Other long-term liabilities14.0  
Deferred tax liabilities177.6  
Amount attributable to liabilities assumed395.2  
Goodwill$986.8  
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(1) The purchase consideration was translated using the Euro to U.S. dollar exchange rate in effect on the closing date of approximately 1.066.
(2) Assets held for sale, and liabilities directly associated with the assets held for sale, represented those of HEG's PlusServer managed hosting business (PlusServer), which met the criteria for held for sale designation at the acquisition date and was sold in August 2017. See Note 4 for further discussion.
The purchase price allocation to identifiable finite-lived intangible assets acquired was as follows:
Finite-lived Intangible AssetsEstimated
Useful Lives
Trade names10 years$75.2  
Developed technology6 years62.4  
Customer relationships9 years458.1  
$595.7  
We valued trade names and developed technology by applying the relief-from-royalty method, which is a variation of the income approach. Customer relationships were valued using the multi-period excess earnings method under the income approach. We determined the assumptions used in developing these valuations based on our future plans, historical data, current and anticipated market conditions, estimated growth rates and market comparables. The acquired finite-lived intangible assets have a total weighted-average amortization period of 8.8 years.
Property and equipment was valued using the cost approach. Deferred revenue was valued using the income approach. Estimated DTLs primarily represent the expected future tax consequences of temporary differences between the fair values of the assets acquired and liabilities assumed and their respective tax bases.
In 2017, HEG contributed approximately $155.1 million of our total revenue and a net loss of approximately $17.2 million within our income from continuing operations.
Other 2017 Acquisition
In April 2017, we completed an acquisition for consideration consisting of cash of $45.7 million, $9.0 million payable in future periods upon expiration of the contractual holdback period, $15.0 million of time-based milestone payments and additional contingent earn-out payments of up to $15.0 million subject to the achievement of certain revenue and integration milestones. We recognized a liability of $33.7 million representing the estimated aggregate acquisition-date fair value of the future payments. The aggregate purchase price was allocated based upon our assessment of acquisition-date fair values with $63.5 million allocated to goodwill, none of which is tax deductible, $28.5 million to identified finite-lived intangible assets and $12.6 million of net liabilities assumed. Identified finite-lived intangible assets, which were valued using income-based approaches, consist of developed technology, customer relationships and trade names. The acquired finite-lived intangible assets have a total weighted-average amortization period of 5.5 years. The acquisition was not material to our results of operations.
Other Acquisition-Related Payments
During 2019, 2018 and 2017, we made $88.0 million, $21.7 million and $10.8 million of aggregate holdback and contingent consideration payments related to prior acquisitions.
v3.19.3.a.u2
Sale of Discontinued Operations
 12 Months Ended
Dec. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Sale of Discontinued Operations Sale of Discontinued OperationsIn connection with the HEG acquisition, we committed to a formal plan to sell PlusServer as its business model differed from ours. The operating results of PlusServer from the acquisition date to the date of its sale are reported within discontinued operations. On August 31, 2017, we sold all of the outstanding shares of PlusServer, receiving net proceeds of $447.7 million. As a result of the sale, we recorded a gain on disposal of $33.2 million in 2017, which is included in income from discontinued operations and includes the reclassification of the associated cumulative translation adjustment on PlusServer's net assets.
v3.19.3.a.u2
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
The following table summarizes changes in our goodwill balance:
Balance at December 31, 2017$2,859.9  
Goodwill related to 2018 acquisitions(1)
139.8  
Impact of foreign currency translation(51.7) 
Balance at December 31, 20182,948.0  
Goodwill related to 2019 acquisitions20.9  
Impact of foreign currency translation7.6  
Balance at December 31, 2019$2,976.5  
_________________________________
(1) Includes immaterial measurement period adjustments related to acquisitions completed in 2017.
Intangible assets, net are summarized as follows:
December 31, 2019
Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount
Indefinite-lived intangible assets:
Trade names and branding$445.0  n/a  $445.0  
Domain portfolio148.1  n/a  148.1  
Finite-lived intangible assets:
Customer-related838.4  $(475.6) 362.8  
Developed technology151.5  (67.3) 84.2  
Trade names and other81.4  (23.8) 57.6  
$1,664.4  $(566.7) $1,097.7  

December 31, 2018
Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount
Indefinite-lived intangible assets:
Trade names and branding$445.0  n/a  $445.0  
Domain portfolio152.4  n/a  152.4  
Finite-lived intangible assets:
Customer-related850.5  $(407.5) 443.0  
Developed technology206.9  (103.1) 103.8  
Trade names and other92.9  (25.6) 67.3  
$1,747.7  $(536.2) $1,211.5  
During 2017, we completed three purchases of intangible assets for $52.0 million in cash. The assets purchased consisted of $50.5 million in indefinite-lived domain portfolios and $1.5 million in customer-related intangible assets. The purchased customer-related intangible assets were valued at cost and are being amortized over 36 months. Transaction costs were immaterial and were expensed as incurred.
Amortization expense was $119.5 million, $136.7 million and $117.0 million during 2019, 2018 and 2017, respectively. As of December 31, 2019, the weighted-average remaining amortization period for amortizable intangible assets was 87 months for customer-related intangible assets, 41 months for developed technology and 71 months for trade names and other, and was 67 months in total.
Based on the balance of finite-lived intangible assets at December 31, 2019, expected future amortization expense is as follows:
Year Ending December 31:
2020$111.7  
202188.3  
202286.6  
202371.3  
202461.7  
Thereafter85.0  
$504.6  
v3.19.3.a.u2
Stockholders' Equity
 12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Stockholders' Equity Stockholders' Equity
Certificate of Incorporation
Our amended and restated certificate of incorporation authorized the issuance of up to 1,000,000 shares of Class A common stock, up to 500,000 shares of Class B common stock and up to 50,000 shares of undesignated preferred stock, each having a par value of $0.001 per share. Shares of Class A common stock have both economic and voting rights. Shares of Class B common stock have no economic rights, but do have voting rights. Holders of Class A and Class B common stock are entitled to one vote per share and, except as otherwise required, will vote together as a single class on all matters on which stockholders generally are entitled to vote.
We are required to, at all times, maintain (i) a one-to-one ratio between the number of shares of Class A common stock outstanding and the number of LLC Units owned by us and (ii) a one-to-one ratio between the number of shares of Class B common stock and LLC Units owned by Desert Newco's pre-IPO owners. We may issue shares of Class B common stock only to the extent necessary to maintain these ratios. Shares of Class B common stock are transferable only together with an equal number of LLC Units if we, at the election of a pre-IPO owner, exchange LLC Units for shares of Class A common stock.
Secondary Offerings and LLC Unit Repurchase
We have completed several underwritten public offerings in which certain stockholders, including Kohlberg Kravis Roberts & Co. L.P. (KKR), Silver Lake Partners (SLP), Technology Crossover Ventures (TCV) and YAM Special Holdings, Inc. (YAM) and certain of our executive officers sold shares of our Class A common stock. We did not receive any proceeds from the shares sold by the selling stockholders in these offerings. We used the net proceeds from the shares sold by us to pay expenses incurred in connection with the offerings. Each offering included the exchange of LLC Units (together with the corresponding shares of Class B common stock) for Class A common stock by the selling stockholders, which resulted in increases in additional paid-in capital, with offsetting reductions in non-controlling interests, and material increases to the liability under the TRAs (see Note 16). Significant details for each offering are as follows:
Offering DateOffering Price Per Share ($)Shares Sold by GoDaddy (#)Gross Proceeds Received by GoDaddy ($)Aggregate Shares Sold by Selling Stockholders (#)LLC Units Exchanged by Selling Stockholders (#)Increase in Additional Paid-in Capital ($)
February 2019(1)
75.40  8  0.6  8,539  4,278  5.7  
August 2018(2)
75.75  8  0.6  10,391  7,405  7.8  
May 201870.73  —  —  11,625  8,052  7.6  
March 201859.21  —  —  16,916  12,821  11.2  
December 2017(3)
47.32  50  2.4  7,228  4,689  4.7  
September 201744.00  50  2.2  20,000  13,774  10.8  
May 201738.50  100  3.7  27,615  16,701  10.8  
_________________________________
(1) Following the February 2019 secondary offering, KKR and SLP no longer owned shares of GoDaddy's common stock.
(2) Following the August 2018 secondary offering, YAM no longer owned shares of GoDaddy's common stock.
(3) Following the December 2017 secondary offering, TCV no longer owned shares of GoDaddy's common stock.
In May 2017, we repurchased 7,345 LLC units from KKR, SLP, TCV and YAM for an aggregate of $275.0 million, or $37.44 per share, which is the same per share price, net of discounts and commissions, paid by the underwriters to the selling stockholders in the May 2017 secondary offering. In connection with this repurchase, the corresponding shares of Class B common stock were canceled. In May 2017, we also sold an aggregate of 521 shares of Class A common stock to certain executives for total proceeds of $19.2 million.
Share Repurchase Programs
In November 2018, our Board approved a share repurchase program pursuant to which we may repurchase up to $500.0 million of our Class A common stock (the 2018 Share Repurchase Program). During 2019, we repurchased a total of 7,125 shares of our Class A common stock in the open market pursuant to the 2018 Share Repurchase Program for an aggregate purchase price of $458.6 million, including commissions.
In October 2019, our Board approved an additional share repurchase program pursuant to which we may repurchase up to $500.0 million of our Class A common stock (the 2019 Share Repurchase Program). As of December 31, 2019, we have not repurchased any shares under the 2019 Share Repurchase Program.
Under each of these repurchase programs, we may purchase shares from time to time in open market purchases, block transactions and privately negotiated transactions, in accordance with applicable federal securities laws. The programs have no time limits, do not obligate us to make any repurchases and may be modified, suspended or terminated by us at any time without prior notice. The amount and timing of repurchases are subject to a variety of factors including liquidity, share price, market conditions and legal requirements, and will be funded by available cash and cash equivalents. Repurchased shares are immediately retired and returned to an unissued status. We have elected to record the excess of the repurchase price over par value as a charge to retained earnings (accumulated deficit).
v3.19.3.a.u2
Equity-Based Compensation Plans
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Equity-Based Compensation Plans Equity-Based Compensation Plans
Equity Plans
On March 31, 2015, we adopted the 2015 Equity Incentive Plan (the 2015 Plan) and reserved a total of 10,285 shares of Class A common stock for issuance thereunder. The shares reserved for issuance under the 2015 Plan also included up to 28,133 shares rolled over from our previous equity plan and from certain other option plans assumed in connection with acquisitions. The number of shares reserved for issuance are increased automatically 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, 2019, an additional 6,992 shares were reserved for issuance pursuant to the 2015 Plan. As of December 31, 2019, 23,363 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 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, 2019, an additional 1,000 shares were reserved for issuance pursuant to the ESPP. As of December 31, 2019, 3,575 shares were available for issuance under the ESPP.
Equity-Based Compensation Expense Error
During 2019, we determined that we had previously recognized equity-based compensation expense related to certain PSUs prior to the establishment of a grant date for accounting purposes. The error is comprised of $3.0 million, $5.7 million and $6.9 million recognized in 2016, 2017 and 2018, respectively. We determined the amounts related to the prior period financial statements and disclosures were immaterial considering both quantitative and qualitative factors. Accordingly, we reversed the cumulative amount as a reduction of equity-based compensation expense in 2019.
Equity Plan Activity
The following table summarizes option activity:
Number of
Shares of Class A Common Stock (#)		Weighted-
Average
Grant-
Date Fair
Value ($)		Weighted-
Average
Exercise
Price ($)		Weighted-
Average
Remaining
Contractual
Life
(in years)		Aggregate
Intrinsic
Value ($)
Outstanding at December 31, 201618,628  14.06  
Granted2,077  15.07  38.03  
Exercised(6,000) 10.18  187.1  
Forfeited(1,245) 23.46  
Outstanding at December 31, 201713,460  18.63  
Granted1,208  22.19  61.49  
Exercised(4,779) 14.08  246.4  
Forfeited(362) 34.05  
Outstanding at December 31, 20189,527  25.77  
Granted1,401  24.91  71.74  
Exercised(3,976) 17.78  213.8  
Forfeited(648) 54.43  
Outstanding at December 31, 20196,304  38.08  5.9194.6  
Vested at December 31, 20193,916  25.31  4.8167.2  
The following table summarizes RSU and PSU activity:
Number of
Shares of Class A Common Stock (#)
Outstanding at December 31, 20162,757  
Granted2,877  
Vested(939) 
Forfeited(496) 
Outstanding at December 31, 2017(1)
4,199  
Granted3,152  
Vested(1,545) 
Forfeited(450) 
Outstanding at December 31, 2018(1)
5,356  
Granted3,057  
Vested(2,187) 
Forfeited(986) 
Outstanding at December 31, 2019(1)
5,240  
_________________________________
(1) Includes PSUs for which performance targets have not yet been established, and which are not yet considered granted for accounting purposes. The balance of outstanding awards is comprised of the following:
Number of Shares of Class A Common Stock (#)Weighted Average Fair Value Per Share ($)
RSUs2,885  36.12
PSUs granted for accounting purposes409  37.13
PSUs not yet granted for accounting purposes905  N/A
Outstanding at December 31, 20174,199  
RSUs3,952  53.77
PSUs granted for accounting purposes505  63.18
PSUs not yet granted for accounting purposes899  N/A
Outstanding at December 31, 20185,356  
RSUs4,247  65.12
PSUs granted for accounting purposes401  73.28
PSUs not yet granted for accounting purposes592  N/A
Outstanding at December 31, 20195,240  
At December 31, 2019, total unrecognized compensation expense related to non-vested options and awards was $33.4 million and $190.3 million, respectively, with expected remaining weighted-average recognition periods of approximately 2.4 years and 2.3 years, respectively. Such amounts exclude PSUs not yet considered granted for accounting purposes.
We currently believe the performance targets related to the vesting of PSUs considered granted for accounting purposes will be achieved. If such targets are not achieved, or are subsequently determined to not be probable of being achieved, we will not recognize any compensation expense for PSUs not expected to vest, and will reverse any previously recognized expense on such awards.
v3.19.3.a.u2
Deferred Revenue
 12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Deferred Revenue Deferred Revenue
Deferred revenue consisted of the following:
December 31,
20192018
Current:
Domains$752.7  $686.3  
Hosting and presence526.7  483.3  
Business applications265.0  224.1  
$1,544.4  $1,393.7  
Noncurrent:
Domains$382.2  $365.8  
Hosting and presence187.2  180.6  
Business applications85.0  77.4  
$654.4  $623.8  
The increase in the deferred revenue balance is primarily driven by payments received in advance of satisfying our performance obligations, offset by $1,488.2 million of revenue recognized during 2019 that was included in the deferred revenue balance as of December 31, 2018. The deferred revenue balance as of December 31, 2019 represents our aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are satisfied, and is expected to be recognized as revenue as follows:
20202021202220232024ThereafterTotal
Domains$752.7  $199.0  $78.4  $44.7  $24.9  $35.2  $1,134.9  
Hosting and presence526.7  121.8  38.5  15.0  6.6  5.3  713.9  
Business applications265.0  58.7  19.3  4.0  1.6  1.4  350.0  
$1,544.4  $379.5  $136.2  $63.7  $33.1  $41.9  $2,198.8  
v3.19.3.a.u2
Accrued Expenses and Other Current Liabilities
 12 Months Ended
Dec. 31, 2019
Payables and Accruals [Abstract]  
Accrued Expenses and Other Current Liabilities Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following:
December 31,
20192018
Accrued payroll and employee benefits$116.9  $105.9  
Derivative liabilities93.8  120.5  
Current portion of operating lease liabilities39.5  —  
Tax-related accruals30.8  38.4  
Accrued legal and professional28.7  10.9  
Accrued marketing and advertising expenses14.7  19.4  
Accrued acquisition-related expenses and acquisition consideration payable8.3  74.4  
Accrued other33.3  44.8  
$366.0  $414.3  
v3.19.3.a.u2
Long-Term Debt
 12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Long-Term Debt Long-Term Debt
Long-term debt consisted of the following:
December 31,
20192018
Term Loans (effective interest rate of 4.7% at December 31, 2019 and 4.6% at December 31, 2018)
$1,832.3  $2,457.3  
Senior Notes (effective interest rate of 5.4% at December 31, 2019)
600.0  —  
Revolver
—  —  
Total2,432.3  2,457.3  
Less: unamortized original issue discount on long-term debt(1)
(13.2) (27.9) 
Less: unamortized debt issuance costs(1)
(23.9) (18.6) 
Less: current portion of long-term debt(18.4) (16.6) 
$2,376.8  $2,394.2  
_________________________________
(1) Original issue discount and debt issuance costs amortized to interest expense over the life of the related debt instruments using the effective interest method.
Credit Facility
Our secured credit agreement (the Credit Facility), which matures on February 15, 2024, consists of both term loans (the Term Loans) and a revolving credit facility (the Revolver).
The Credit Facility originally included a $1,100.0 million term loan and an available $150.0 million Revolver. In February 2017, we refinanced the Credit Facility to provide for: (i) a $1,072.5 million seven-year term loan, (ii) a second $1,425.0 million term loan, which was issued on April 3, 2017 upon the completion of our acquisition of HEG, and (iii) a $150.0 million five-year Revolver, which increased to $200.0 million upon the completion of our acquisition of HEG. In November 2017, we further refinanced the Credit Facility to reduce the interest rate margins applicable to the Term Loans. In connection with the 2017 refinancings, we recognized an aggregate $2.0 million loss on debt extinguishment, recorded $3.7 million as additional discount and recorded $3.3 million in aggregate fees as general and administrative expense.
As further described below, in June 2019 we issued 5.25% unsecured senior notes (the Senior Notes) in an aggregate principal amount of $600.0 million, the proceeds of which were used to prepay $600.0 million of the outstanding principal balance of the Term Loans. The partial prepayment was made in accordance with the contractual terms of the Credit Facility and the terms of the remaining Term Loans were not modified. As such, the prepayment was considered a partial extinguishment and we wrote off a proportionate amount of the unamortized debt issuance costs and original issue discount, recognizing a $14.5 million loss on debt extinguishment.
Concurrent with the issuance of the Senior Notes, we amended the Revolver to increase its borrowing capacity to $600.0 million and reduce its interest rate margins, as described below. In addition, the amendment provided that compliance relating to our first lien secured leverage ratio occurs upon our usage exceeding 20% of the Revolver, a reduction from the previous level of 35%. In connection with this amendment, we capitalized aggregate fees of $3.4 million as debt issuance costs.
In October 2019, we refinanced the Term Loans to lower the interest rate margins by 0.25%. The refinanced loans were issued at a 0.125% discount at original issue, with no changes made to the maturity date or any other terms of the loans. Fees incurred in connection with the refinancing were not material.
The Term Loans bear interest at a rate equal to, at our option, either (a) LIBOR plus 1.75% per annum or (b) 0.75% 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%. A portion of the Term Loans are hedged by an interest rate swap. See Note 11 for discussion of this hedging instrument and its impact on the interest rate associated with the Term Loans.
The Revolver bears interest at a rate equal to, at our option, either (a) LIBOR plus a margin ranging from 1.25% to 1.75% per annum or (b) the higher of (i) the Federal Funds Rate plus 0.5%, (ii) the Prime Rate or (iii) the one-month LIBOR rate plus 1.0% plus a margin ranging from 0.25% to 0.75% per annum, with the margins determined based on our first lien secured leverage ratio. The Revolver also contains a financial covenant requiring us to maintain a leverage ratio of 5.75:1.00
when our usage exceeds 20.0% of the maximum capacity. This ratio is calculated as the ratio of first lien secured debt less cash and cash equivalents to consolidated EBITDA (as defined in the Credit Facility).
In addition to paying interest on the outstanding principal under the term loans, we are required to pay a commitment fee ranging from 0.125% to 0.375% per annum for any unutilized commitments under the Revolver, with the applicable fee determined based on our first lien secured leverage ratio.
Significant terms of the Credit Facility are as follows:
•we are required to prepay outstanding term loans, subject to certain exceptions, with percentages of excess cash flow, proceeds of non-ordinary course asset sales or dispositions of property, insurance or condemnation proceeds and proceeds from the incurrence of certain debt;
•we are restricted by certain covenants, including, among other things, limitations on our ability to incur additional indebtedness, sell assets, incur additional liens, make certain fundamental changes, pay distributions and make certain investments;
•we are required to maintain certain financial ratios; and
•all obligations are unconditionally guaranteed by all of our material domestic subsidiaries and is secured by substantially all of our and such subsidiaries real and personal property.
At December 31, 2019, we had $600.0 million available for borrowing under the Revolver and were not in violation of any covenants of the Credit Facility.
Senior Notes
In June 2019, we issued the Senior Notes in an aggregate principal amount of $600.0 million in a private placement offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The Senior Notes were issued at par and bear interest at 5.25% per annum, with interest payable semiannually on June 1 and December 1, commencing on December 1, 2019. The aggregate principal amount outstanding is payable at maturity on December 1, 2027, subject to earlier repurchase or optional redemption as described below.
As described above, the proceeds from the issuance of the Senior Notes were used to prepay $600.0 million in aggregate principal amount of our existing Term Loans. In conjunction with the issuance of the Senior Notes, we capitalized $9.7 million in debt issuance costs.
The Senior Notes are redeemable at our option, in whole or in part, at any time prior to June 1, 2022 at a redemption price equal to 100.0% of the principal amount, plus accrued and unpaid interest, plus an applicable premium equal to the greater of 1.0% and the remaining scheduled payments of interest discounted to a present value amount. In the event of an equity offering prior to June 1, 2022, the Senior Notes may be partially redeemed with the net cash proceeds of such offering at our option at an amount equal to 105.25% of the principal amount, plus accrued and unpaid interest. On and after June 1, 2022, we may redeem the Senior Notes, in whole or in part, at an amount equal to 102.625% of the principal amount, decreasing to 101.75% at June 1, 2023, 100.875% at June 1, 2024 and 100.0% thereafter, plus accrued and unpaid interest. Upon the occurrence of a change of control, we are required to offer to repurchase the Senior Notes from the holders at a price equal to 101.0% of the principal amount, plus accrued and unpaid interest.
Significant terms of the Senior Notes are as follows:
•they are subordinated to our existing secured debt, including the Credit Facility, and any future secured debt we may issue;
•all obligations are unconditionally guaranteed by all of our material domestic subsidiaries;
•we are restricted by certain covenants, including limitations on our ability to incur additional indebtedness, incur additional liens, consolidate with or merge with or into another entity and sell substantially all of our assets; and
•certain covenants may be suspended if we are able to obtain and maintain investment grade ratings and no event of default has occurred.
At December 31, 2019, we were not in violation of any covenants of the Senior Notes.
Fair Value
The estimated fair values of the Term Loans and Senior Notes were $1,842.6 million and $632.0 million, respectively, at December 31, 2019 based on observable market prices for these loans, which are traded in less active markets and therefore classified as Level 2 fair value measurements.
Bridge Financing
On April 3, 2017, we entered into a bridge credit agreement pursuant to which we borrowed an aggregate principal amount of €500 million (approximately $533.0 million on the date of issuance) in connection with the HEG acquisition. Following the sale of PlusServer on August 31, 2017, as further discussed in Note 4, we prepaid this loan in its entirety and the underlying credit agreement was canceled. We recognized a $5.3 million loss on debt extinguishment, representing the remaining unamortized original issue discount and debt issuance costs on this loan. As this loan was contractually required to be repaid with any proceeds received from the sale of PlusServer, interest expense attributable to the loan of $12.4 million in 2017 was recorded within discontinued operations.
Future Debt Maturities
Aggregate principal payments, exclusive of any unamortized original issue discount and debt issuance costs, due on long-term debt as of December 31, 2019 are as follows:
Year Ending December 31:
2020$25.0  
202125.0  
202225.0  
202325.0  
20241,732.3  
Thereafter600.0  
$2,432.3  
v3.19.3.a.u2
Derivatives and Hedging
 12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging Derivatives and Hedging
We are exposed to changes in foreign currency exchange rates, primarily relating to intercompany debt and certain forecasted sales transactions denominated in currencies other than the U.S. dollar, as well as to changes in interest rates as a result of our variable-rate debt. Consequently, we use derivative financial instruments to manage and mitigate such risk. We do not enter into derivative transactions for speculative or trading purposes.
The following table summarizes our outstanding derivative instruments, all of which are designated as cash flow hedges, on a gross basis:
Notional Amount
Fair Value of Derivative Assets(2)
Fair Value of Derivative Liabilities(2)
December 31, 2019December 31, 2018December 31, 2019December 31, 2018December 31, 2019December 31, 2018
Derivative Instrument:
Level 2:
Foreign exchange forward contracts$138.9  $—  $—  $—  $3.3  $—  
Cross-currency swap(1)
1,355.8  1,397.8  —  —  64.1  119.1  
Interest rate swap1,289.0  1,302.3  —  —  26.4  1.4  
Total hedges$2,783.7  $2,700.1  $—  $—  $93.8  $120.5  
_________________________________
(1) The notional values of the cross-currency swap have been translated from Euros to U.S. dollars at the foreign currency rates in effect at December 31, 2019 and 2018 of approximately 1.12 and 1.14, respectively.
(2) In our balance sheets, all derivative assets are recorded within prepaid expenses and other current assets and all derivative liabilities are recorded within accrued expenses and other current liabilities.
The following table summarizes the effect of our designated cash flow hedging derivative instruments on AOCI:
Unrealized Gains (Losses) Recognized in Other Comprehensive Income
Year Ended December 31,
201920182017
Derivative Instrument:
Foreign exchange forward contracts(1)
$(2.7) $8.9  $(9.3) 
Cross-currency swap25.8  (3.5) (20.1) 
Interest rate swap(25.0) 17.7  (19.1) 
Total hedges$(1.9) $23.1  $(48.5) 
_________________________________
(1) Amounts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI.
The following table summarizes the locations and amounts of gains (losses) recognized within earnings related to our cash flow hedging relationships:
Year Ended December 31,
201920182017
RevenueInterest ExpenseOther Income (Expense), NetRevenueInterest ExpenseOther Income (Expense), NetRevenueInterest ExpenseOther Income (Expense), Net
Foreign Exchange Forward Contracts:
Reclassified from AOCI into income$3.2  $—  $—  $(2.1) $—  $—  $0.8  $—  $—  
Cross-Currency Swap:
Reclassified from AOCI into income (1)
—  30.1  28.1  —  28.3  65.9  —  21.6  (163.8) 
Interest Rate Swap:
Reclassified from AOCI into income—  (2.6) —  —  (6.5) —  —  (12.8) —  
Total hedges$3.2  $27.5  $28.1  $(2.1) $21.8  $65.9  $0.8  $8.8  $(163.8) 
_________________________________
(1) The amount reflected in other income (expense), net includes $(28.7) million, $(67.3) million and $162.8 million reclassified from AOCI to offset the earnings impact of the remeasurement of the Euro-denominated intercompany loan hedged by the cross-currency swap during 2019, 2018 and 2017, respectively.
As of December 31, 2019, we estimate that approximately $22.0 million of net deferred gains related to our cash flow hedges will be recognized in earnings over the next 12 months. No amounts were excluded from our effectiveness testing during any of the periods presented.
Risk Management Strategies
Foreign Exchange Forward Contracts
From time-to-time, we may enter into foreign exchange forward contracts with financial institutions to hedge certain forecasted sales transactions denominated in foreign currency. We designate these forward contracts as cash flow hedges, which are recognized as either assets or liabilities at fair value. At December 31, 2019, all such contracts had maturities of 18 months or less.
Cross-Currency Swap Contract
In April 2017, in order to manage variability due to movements in foreign currency rates related to a Euro-denominated intercompany loan, we entered into a five-year cross-currency swap arrangement (the Cross-Currency Swap). The Cross-Currency Swap, which matures on April 3, 2022, had an amortizing notional amount of €1,243.3 million at inception (approximately $1,325.4 million). It converts the 3.00% fixed rate Euro-denominated interest and principal receipts on the intercompany loan into fixed U.S. dollar interest and principal receipts at a rate of 5.44%. Pursuant to the contract, the Euro notional value will be exchanged for the U.S. dollar notional value at maturity. The Cross-Currency Swap has been designated as a cash flow hedge. Accordingly, it is recognized as an asset or liability at fair value and the unrealized gains and losses on the contract are included in gain (loss) on swaps and foreign currency hedging, net within AOCI. Gains and losses are reclassified to interest income or expense over the period the hedged loan affects earnings. As such, amounts recorded in other comprehensive income (loss) (OCI) will be recognized in earnings within or against interest expense when the hedged interest payment is accrued each month. In addition, an amount is reclassified from AOCI to other income (expense), net each reporting period, to offset the earnings impact of the hedged instrument.
Interest Rate Swap Contract
In April 2017, we entered into a five-year pay-fixed rate, receive-floating rate interest rate swap arrangement (the Interest Rate Swap) to effectively convert a portion of the variable-rate debt to fixed. The Interest Rate Swap, which matures on April 3, 2022, had an amortizing notional amount of $1,325.4 million at inception and swaps the variable interest rate on our LIBOR-based borrowings for a fixed rate of 5.44%. The objective of the Interest Rate Swap, which is designated as a cash flow hedge and recognized as an asset or liability at fair value, is to manage the variability of cash flows in the interest payments related to the portion of the variable-rate debt designated as being hedged. The unrealized gains and losses on the contract are included in gain (loss) on swaps and foreign currency hedging, net within AOCI, and will be recognized in earnings within or against interest expense when the hedged interest payment is accrued each month.
v3.19.3.a.u2
Leases
 12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Leases Leases
Our operating leases primarily consist of office and data center space expiring at various dates through November 2036. Certain leases include options to renew or terminate at our discretion. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of December 31, 2019, operating leases have a remaining weighted average lease term of 8.2 years and our operating lease liabilities were measured using a weighted average discount rate of 5.3%. Finance leases are immaterial.
The components of operating lease expense were as follows:

Year Ended December 31, 2019
Operating lease costs$55.6  
Variable lease costs8.8  
Sublease income(3.0) 
Net lease costs$61.4  

Total rent expense related to operating leases was $44.1 million and $38.3 million during 2018 and 2017, respectively.
Supplemental cash flow information related to operating leases was as follows:

Year Ended December 31, 2019
Cash paid for amounts included in the measurement of operating lease liabilities$50.0  
ROU assets obtained in exchange for operating lease obligations126.3  
Operating lease liabilities are included in our balance sheets as follows:

December 31, 2019
Accrued expenses and other current liabilities$39.5  
Operating lease liabilities, net of current portion192.9  
$232.4  

Maturities of operating lease liabilities as of December 31, 2019 were as follows:

Year Ending December 31:
2020$50.6  
202144.9  
202233.1  
202325.6  
202424.3  
Thereafter110.0  
Total lease payments288.5  
Less: imputed interest(56.1) 
$232.4  
v3.19.3.a.u2
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
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, 2019 are as follows:
Year Ending December 31:
2020$48.9  
202148.0  
202248.5  
202324.5  
202410.6  
Thereafter0.3  
Total minimum payments$180.8  
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 and certified 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.
On June 13, 2019, we entered into an agreement in principle to settle the class action complaint, Jason Bennett v. GoDaddy.com (Case No. 2:16-cv-03908-DLR)(U.S.D.C.)(D.AZ), filed on June 20, 2016. The complaint alleges violation of the Telephone Consumer Protection Act of 1991 (the TCPA). On September 23, 2019, the parties fully executed a written settlement agreement. On December 16, 2019, we amended the settlement agreement to include two additional putative class action cases, which also alleged violations of the TCPA: John Herrick v. GoDaddy.com, LLC, D. Ariz. (Case No. 2:16-cv-00254, appeal pending 18-16048 (9th Cir.)) and Susan Drazen v. GoDaddy.com, LLC (Case No 19-cv-00563). The amended settlement agreement is still subject to Court approval; a Motion for Preliminary Approval was filed on January 10, 2020 and remains pending.
Under the terms of the proposed amended settlement agreement, we would make available a total of up to $35.0 million to pay: (i) class members, at their election, either a cash settlement or a credit to be used for future purchases of products from us, (ii) an incentive payment to the class representative, (iii) notice and administration costs in connection with the settlement, and (iv) attorneys' fees to legal counsel representing the class. If approved, we would receive a full release from the settlement class (other than from those class members who timely elect to opt out of the settlement) concerning the claims asserted, or that could have been asserted, with respect to the claims released in the amended settlement agreement.
During the three months ended June 30, 2019, we recorded an estimated loss provision of $18.1 million to general and administrative expense, which represents our best estimate of the total settlement costs, inclusive of attorneys' fees to be paid to legal counsel representing the class in connection with the settlement. We made no changes to our estimated loss accrual during the six months ended December 31, 2019. Our legal fees associated with this matter have been recorded to general and administrative expense as incurred and were not material.
We have denied and continue to deny the allegations in the complaint. Nothing in the amended settlement agreement shall be deemed to assign or reflect any admission of fault, wrongdoing or liability, or of the appropriateness of a class action in such litigation.
The amounts currently accrued for other matters are not material. While the results of such normal course claims and legal proceedings, regardless of the underlying nature of the claims, cannot be predicted with certainty, management does not believe, based on current knowledge and the likely timing of resolution of various matters, any additional reasonably possible potential losses above the amounts accrued for such matters would be material. Regardless of the outcome, claims and legal proceedings may have an adverse effect on us because of defense costs, diversion of management resources and other factors. We may also receive unfavorable preliminary or interim rulings in the course of litigation, and there can be no assurances that favorable final outcomes will be obtained. The final outcome of any current or future claims or lawsuits could adversely affect our business, financial condition or results of operations.
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, 2019 and 2018.
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, 2019 and 2018.
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, 2019 and 2018, our accrual for estimated indirect tax liabilities was $9.4 million and $11.6 million, respectively, reflecting our best estimate of the probable liability based on an analysis of our business activities, revenues subject to indirect taxes and applicable regulations. Although we believe our indirect tax estimates and associated liabilities are reasonable, the final determination of indirect tax audits, litigation or settlements could be materially different than the amounts established for indirect tax contingencies.
v3.19.3.a.u2
Defined Contribution Plan
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Defined Contribution Plan Defined Contribution Plan
We maintain defined contribution 401(k) plans covering eligible U.S. employees, who may contribute up to 100% of their compensation, subject to limitations established by the Internal Revenue Code. We match employee contributions on a discretionary basis. Expense for our matching contributions was $14.7 million, $13.5 million and $9.9 million during 2019, 2018 and 2017, respectively.
We maintain defined contribution benefit plans covering eligible foreign employees. Expense related to such plans was not material in any period presented.
v3.19.3.a.u2
Income Taxes
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Overview
We are subject to U.S. federal, state and foreign income taxes with respect to our allocable share of any taxable income or loss of Desert Newco, as well as any stand-alone income or loss we generate. Desert Newco is treated as a partnership for U.S. income tax purposes, and for most applicable state and local income tax purposes, and generally does not pay income taxes on its taxable income in most jurisdictions. Instead, Desert Newco's taxable income or loss is passed through to its members, including us. Despite its partnership treatment, Desert Newco is liable for income taxes in certain foreign jurisdictions in which it operates, in those states not recognizing its pass-through status and for certain of its subsidiaries not taxed as pass-through entities. We have acquired the outstanding stock of various domestic and foreign entities taxed as corporations, which are now wholly-owned by us or our subsidiaries. Where required or allowed, these subsidiaries also file and pay tax as a consolidated group for U.S. federal and state income tax purposes and internationally, primarily within the U.K., Germany and India. We anticipate this structure to remain in existence for the foreseeable future.
Benefit for Income Taxes
Our benefit for income taxes includes U.S. federal, state and foreign income taxes. The domestic and foreign components of our income from continuing operations before income taxes were as follows:
Year Ended December 31,
201920182017
U.S.$176.4  $138.9  $180.6  
Foreign(50.0) (65.9) (73.8) 
Income from continuing operations before income taxes$126.4  $73.0  $106.8  
Our benefit for income taxes was as follows:
Year Ended December 31,
201920182017
Current:
Federal$(0.7) $(1.3) $(1.4) 
State(0.6) (0.7) (0.6) 
Foreign(7.8) (10.3) (9.5) 
(9.1) (12.3) (11.5) 
Deferred:
Federal4.4  1.4  9.6  
State0.4  1.0  0.8  
Foreign16.3  18.9  20.0  
21.1  21.3  30.4  
Benefit for income taxes$12.0  $9.0  $18.9  
A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate was as follows:
Year Ended December 31,
201920182017
Expected provision at U.S. federal statutory tax rate$(26.5) $(15.3) $(37.4) 
Effect of U.S. federal rate reduction, net of the effect on valuation allowances—  —  7.9  
Effect of investment in Desert Newco7.1  13.1  27.4  
TRA liability adjustment1.7  0.3  24.3  
Foreign earnings2.1  3.1  (15.3) 
State taxes, net of federal benefit(1.2) 2.1  (3.1) 
Other(4.3) 0.9  0.5  
Effect of changes in valuation allowances, excluding effect of U.S. federal rate reduction33.1  4.8  14.6  
Benefit for income taxes$12.0  $9.0  $18.9  
Our effective tax rate is driven by changes in valuation allowances based on current year earnings and the impact of foreign earnings primarily related to the U.K., Germany and India jurisdictions. In 2017, the increase in the impact of foreign earnings primarily resulted from our acquisition of HEG and the TRA liability adjustment primarily represents the non-deductible portion of the benefit resulting from the decrease in the liability under the TRAs due to the U.S. federal rate reduction.
Deferred Taxes
The components of our deferred taxes were as follows:
December 31,
20192018
DTAs:
Investment in Desert Newco
$968.0  $942.5  
NOLs
476.1  391.3  
Deferred interest
34.1  19.3  
Operating lease liabilities
25.7  —  
TRA liability
24.4  22.1  
Other
8.9  15.9  
Valuation allowance
(1,497.0) (1,372.8) 
Total DTAs40.2  18.3  
DTLs:
Identified intangible assets
(112.8) (133.8) 
Operating lease assets
(22.7) —  
Total DTLs(135.5) (133.8) 
Net DTLs$(95.3) $(115.5) 

As a result of certain pre-IPO organizational transactions, we acquired LLC Units and recognized a DTA for the difference between the financial reporting and tax basis of our investment in Desert Newco. During 2018, the DTAs associated with our investment increased $648.3 million due to exchanges of LLC Units and stock option exercises, and we recorded additional DTAs of $125.3 million as a result of our portion of Desert Newco's losses. During 2019, the DTAs associated with our investment increased $113.7 million due to exchanges of LLC Units and stock option exercises, and we recorded additional DTAs of $94.4 million as a result of our portion of Desert Newco's losses.
Based primarily on our limited operating history and our historical losses, we believe there is significant uncertainty as to when we will be able to utilize certain of our NOLs, credit carryforwards and other DTAs. Therefore, we have recorded a valuation allowance against the DTAs for which we have concluded it is more-likely-than-not they will not be realized. As of December 31, 2019, we have U.S. federal, state and foreign gross NOLs, credits and incentives, a portion of which will begin to expire in 2030, as follows:
Gross NOLs, Credits and IncentivesPortion Subject to a Valuation Allowance
Federal NOLs and credits$1,751.1  $1,747.2  
State NOLs, credits and incentives2,225.0  2,220.6  
Foreign NOLs31.4  24.2  
Total NOLs, credits and incentives$4,007.5  $3,992.0  
Other
As of December 31, 2019, we have provided income taxes on the earnings of foreign subsidiaries, except to the extent such earnings are considered indefinitely reinvested. We have determined the amount of unrecognized DTL related to these temporary differences to be immaterial.
We have filed all income tax returns for years through 2018, other than for Germany. These returns are subject to examination by the taxing authorities in the respective jurisdictions, generally for three or four years after they were filed. Based on our analysis of tax positions taken on income tax returns filed, we have determined no material liabilities related to uncertain income tax positions were required for 2018. Our liability for unrecognized tax benefits as of December 31, 2019 was as follows:
Year Ended December 31, 2019
Balance at beginning of period$2.1  
Gross increases - tax positions in prior period4.5  
Gross increases - tax positions in current period2.7  
Balance at end of period$9.3  
We recognize interest accrued related to unrecognized tax benefits and penalties as income tax expense. No material amounts were recognized during any of the periods presented. We do not expect a significant decrease in our liability for unrecognized tax benefits in the next 12 months.
Although we believe the amounts reflected in our tax returns substantially comply with applicable U.S. federal, state and foreign tax regulations, the respective taxing authorities may take contrary positions based on their interpretation of the law. A tax position successfully changed by a taxing authority could result in an adjustment to our benefit for income taxes in the period in which a final determination is made.
v3.19.3.a.u2
Payable to Related Parties Pursuant to the TRAs
 12 Months Ended
Dec. 31, 2019
Related Party Transactions [Abstract]  
Payable to Related Parties Pursuant to the TRAs Payable to Related Parties Pursuant to the TRAs
As a result of certain pre-IPO organizational transactions, we received certain tax attributes, including the OBAs and NOL carryforwards, from certain of our pre-IPO owners. These OBAs entitle us to the depreciation and amortization previously allocable to such parties, which are allowed prior to the utilization of any NOL or tax credit carryforwards against income taxes. If these additional depreciation and amortization deductions are greater than our taxable income, the excess deductions allocated to us will increase the amount of our NOL carryforwards. Based on 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.
As of December 31, 2017, the liability under the TRAs was $153.0 million, representing approximately 85% of the calculated tax savings based on the portion of the OBAs we anticipate being able to utilize in future years. During 2018, we increased this liability through a $36.2 million reduction of additional paid-in-capital resulting from exchanges of LLC Units in the secondary offerings discussed in Note 6, partially offset by a $14.9 million benefit to our statements of operations primarily resulting from changes in forecasted taxable income. As of December 31, 2018, the liability under the TRAs was $174.3 million.
During 2019, we increased this liability through an aggregate $9.7 million reduction of additional paid-in-capital resulting from the exchanges of LLC Units in the secondary offering discussed in Note 6, partially offset by a benefit to our statements of operations of $8.7 million primarily resulting from additional tax deductible equity-based compensation. As of December 31, 2019, the liability under the TRAs was $175.3 million.
The projection of future taxable income involves significant judgment. Actual taxable income may differ from our estimates, which could significantly impact the liability under the TRAs. We have determined it is more-likely-than-not we will be unable to utilize all of our DTAs subject to TRAs; therefore, we have not recorded a liability under the TRAs related to the tax savings we may realize from the utilization of NOL carryforwards and the amortization related to basis adjustments 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 $1,140.9 million as a result of basis adjustments under the Internal Revenue Code and up to an additional $438.4 million related to the utilization of NOL and credit carryforwards, which will be recorded through charges to our statements of operations. However, if the tax attributes are not utilized in future years, it is reasonably possible no amounts would be paid under the TRAs. In this scenario, the reduction of the liability under the TRAs would result in a benefit to our statements of operations.Related Party TransactionsAs of December 31, 2019 and 2018, affiliates of KKR held $7.8 million and $10.4 million, respectively, of the outstanding principal balance of our Term Loans as participating lenders. No material amounts were paid to KKR during any of the periods presented.
v3.19.3.a.u2
Income Per Share
 12 Months Ended
Dec. 31, 2019
Earnings Per Share [Abstract]  
Income Per Share Income Per Share
Basic income per share is computed by dividing net income attributable to GoDaddy Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted income per share is computed giving effect to all potentially dilutive shares unless their effect is antidilutive.
A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share is as follows:
Year Ended December 31,
201920182017
Numerator:
Income from continuing operations$138.4  $82.0  $125.7  
Income from discontinued operations, net of income taxes—  —  14.1  
Net income138.4  82.0  139.8  
Less: net income attributable to non-controlling interests1.4  4.9  3.4  
Net income attributable to GoDaddy Inc. $137.0  $77.1  $136.4  
Denominator:
Weighted-average shares of Class A common stock outstanding—basic173,431  155,234  108,779  
Effect of dilutive securities:
Class B common stock2,318  16,534  57,999  
Stock options4,369  7,123  8,791  
RSUs, PSUs and ESPP shares1,603  2,462  1,485  
Weighted-average shares of Class A Common stock outstanding—diluted181,721  181,353  177,054  
Net income attributable to GoDaddy Inc. per share of Class A common stock—basic:
Continuing operations$0.79  $0.50  $1.17  
Discontinued operations—  —  0.08  
Net income attributable to GoDaddy Inc.$0.79  $0.50  $1.25  
Net income attributable to GoDaddy Inc. per share of Class A common stock—diluted:(1)
Continuing operations$0.76  $0.45  $0.71  
Discontinued operations—  —  0.08  
Net income attributable to GoDaddy Inc.$0.76  $0.45  $0.79  
_________________________________
(1) The diluted income per share calculations exclude net income attributable to non-controlling interests.
The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted income per share because the effect of including such potentially dilutive shares would have been antidilutive:
Year Ended December 31,
201920182017
Stock options, RSUs and PSUs1,784  982  1,700  
Shares of Class B common stock do not share in our earnings and are not participating securities. Accordingly, separate presentation of income 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.
v3.19.3.a.u2
Geographic Information
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Geographic Information Geographic Information
Revenue by geography is based on the customer's billing address, and was as follows:
Year Ended December 31,
201920182017
U.S.$1,979.6  $1,723.9  1,504.5  
International1,008.5  936.2  727.4  
$2,988.1  $2,660.1  $2,231.9  
No individual international country represented more than 10% of total revenue in any period presented.
Property and equipment, net by geography was as follows:
Year Ended December 31,
20192018
U.S.200.4  231.0  
International58.2  68.0  
$258.6  $299.0  
No individual international country represented more than 10% of property and equipment, net in any period presented.
v3.19.3.a.u2
Related Party Transactions
 12 Months Ended
Dec. 31, 2019
Related Party Transactions [Abstract]  
Related Party Transactions Payable to Related Parties Pursuant to the TRAs
As a result of certain pre-IPO organizational transactions, we received certain tax attributes, including the OBAs and NOL carryforwards, from certain of our pre-IPO owners. These OBAs entitle us to the depreciation and amortization previously allocable to such parties, which are allowed prior to the utilization of any NOL or tax credit carryforwards against income taxes. If these additional depreciation and amortization deductions are greater than our taxable income, the excess deductions allocated to us will increase the amount of our NOL carryforwards. Based on 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.
As of December 31, 2017, the liability under the TRAs was $153.0 million, representing approximately 85% of the calculated tax savings based on the portion of the OBAs we anticipate being able to utilize in future years. During 2018, we increased this liability through a $36.2 million reduction of additional paid-in-capital resulting from exchanges of LLC Units in the secondary offerings discussed in Note 6, partially offset by a $14.9 million benefit to our statements of operations primarily resulting from changes in forecasted taxable income. As of December 31, 2018, the liability under the TRAs was $174.3 million.
During 2019, we increased this liability through an aggregate $9.7 million reduction of additional paid-in-capital resulting from the exchanges of LLC Units in the secondary offering discussed in Note 6, partially offset by a benefit to our statements of operations of $8.7 million primarily resulting from additional tax deductible equity-based compensation. As of December 31, 2019, the liability under the TRAs was $175.3 million.
The projection of future taxable income involves significant judgment. Actual taxable income may differ from our estimates, which could significantly impact the liability under the TRAs. We have determined it is more-likely-than-not we will be unable to utilize all of our DTAs subject to TRAs; therefore, we have not recorded a liability under the TRAs related to the tax savings we may realize from the utilization of NOL carryforwards and the amortization related to basis adjustments 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 $1,140.9 million as a result of basis adjustments under the Internal Revenue Code and up to an additional $438.4 million related to the utilization of NOL and credit carryforwards, which will be recorded through charges to our statements of operations. However, if the tax attributes are not utilized in future years, it is reasonably possible no amounts would be paid under the TRAs. In this scenario, the reduction of the liability under the TRAs would result in a benefit to our statements of operations.Related Party TransactionsAs of December 31, 2019 and 2018, affiliates of KKR held $7.8 million and $10.4 million, respectively, of the outstanding principal balance of our Term Loans as participating lenders. No material amounts were paid to KKR during any of the periods presented.
v3.19.3.a.u2
Accumulated Other Comprehensive Loss
 12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss
The following table presents AOCI activity in equity:
Foreign Currency Translation Adjustments
Net Unrealized Gains (Losses) on Cash Flow Hedges(1)
Total Accumulated Other Comprehensive Income (Loss)
Gross balance as of December 31, 2017(2)
$(86.8) $(45.5) $(132.3) 
Other comprehensive income (loss) before reclassifications(5.5) (62.5) (68.0) 
Amounts reclassified from AOCI—  85.6  85.6  
Other comprehensive income (loss) - 2018(5.5) 23.1  17.6  
$(92.3) $(22.4) (114.7) 
Less: AOCI attributable to non-controlling interests42.6  
Balance as of December 31, 2018$(72.1) 
Gross balance as of December 31, 2018(2)
$(92.3) $(22.4) $(114.7) 
Other comprehensive income (loss) before reclassifications37.7  (60.7) (23.0) 
Amounts reclassified from AOCI—  58.8  58.8  
Other comprehensive income (loss) - 201937.7  (1.9) 35.8  
$(54.6) $(24.3) (78.9) 
Less: AOCI attributable to non-controlling interests0.7  
Balance as of December 31, 2019$(78.2) 
_________________________________
(1) Amounts shown for our foreign exchange forward contracts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI.
(2) Beginning balance is presented on a gross basis, excluding the allocation of AOCI attributable to non-controlling interests.
The sale of discontinued operations in August 2017 resulted in the reclassification from AOCI of $46.9 million in cumulative foreign currency translation adjustments, which was reported in the gain on disposal within discontinued operations in 2017. The income tax impact associated with this reclassified amount was not material.
See Note 11 for the effect on net income of amounts reclassified from AOCI related to our cash flow hedging instruments. The income tax impact associated with these reclassified amounts was not material in any period presented.
v3.19.3.a.u2
Selected Quarterly Financial Data (Unaudited)
 12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Data (Unaudited) Selected Quarterly Financial Data (Unaudited)
The following table contains selected unaudited statements of operations information for each quarter of 2019 and 2018. The following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period.
Three Months Ended
Dec. 31, 2019Sept. 30, 2019Jun. 30, 2019Mar. 31, 2019Dec. 31, 2018Sept. 30, 2018Jun. 30, 2018Mar. 31, 2018
Total revenue$780.4  $760.5  $737.2  $710.0  $695.8  $679.5  $651.6  $633.2  
Operating income73.5  91.4  18.9  18.8  41.8  37.5  43.5  26.8  
Net income (loss)61.1  76.8  (12.7) 13.2  43.5  14.1  20.2  4.2  
Net income (loss) attributable to GoDaddy Inc.60.5  76.2  (12.6) 12.9  42.5  13.2  18.1  3.3  
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—basic$0.35  $0.44  $(0.07) $0.08  $0.25  $0.08  $0.12  $0.02  
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—diluted$0.34  $0.42  $(0.07) $0.07  $0.24  $0.08  $0.11  $0.02  
v3.19.3.a.u2
Subsequent Events
 12 Months Ended
Dec. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events Subsequent EventsIn February 2020, we entered into agreements for two acquisitions with an aggregate purchase price of approximately $196.9 million, of which $149.1 million has been paid in cash. The remaining $47.8 million will be paid upon receipt of certain regulatory approvals and satisfaction of other customary closing conditions as well as upon the expiration of the contractual holdback period.
v3.19.3.a.u2
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Basis of Presentation Basis of PresentationOur 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
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 relative stand-alone selling price of the indicated performance obligations included in revenue arrangements with multiple performance obligations;
•the fair value of assets acquired and liabilities assumed in business acquisitions;
•the fair value of contingent consideration arrangements;
•the assessment of recoverability of long-lived assets;
•the estimated reserve for refunds;
•the estimated useful lives of intangible and depreciable assets;
•the grant date fair value of equity-based awards;
•the fair value of financial instruments;
•the recognition, measurement and valuation of current and deferred income taxes;
•the recognition and measurement of amounts payable under tax receivable agreements (TRAs); and
•the recognition and measurement of loss contingencies, indirect tax liabilities and certain accrued liabilities.
We periodically evaluate our estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual results may differ.
Segment
Segment
As of December 31, 2019, our chief operating decision maker function was comprised of our Chief Executive Officer who reviews 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 and reportable segment.
Cash and Cash Equivalents Cash and Cash EquivalentsCash and cash equivalents includes cash on hand, other highly liquid investments 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 various instruments with a remaining maturity in excess of 90 days at the date of acquisition, which are carried at fair value. The estimated fair value of our short-term investments is determined based on quoted market prices and approximated historical cost. We did not have any material realized or unrealized gains or losses on sales of short-term investments during any of the periods presented.
We classify our short-term investments as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell our short-term investments at any time for use in current operations or for other purposes, such as consideration for acquisitions, even if they have not yet reached maturity. As a result, we classify our short-term investments, including investments with maturities beyond 12 months, as current assets.
Registry Deposits
Registry Deposits
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
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 is recorded over the shorter of the estimated useful life or the lease term of the applicable assets using the straight-line method beginning on the date an asset is placed in service. We regularly evaluate the estimated remaining useful lives of our property and equipment to determine whether events or changes in circumstances warrant a revision to the remaining period of depreciation. Maintenance and repairs are charged to expense as incurred.
Capitalized Internal-Use Software Costs
Capitalized Internal-Use Software Costs
Costs incurred to develop software for internal-use during the application development phase 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. During 2019, we capitalized $13.4 million of such costs to property and equipment. Capitalized costs were not material in 2018.
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 and our 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 reportable segment and our indefinite-lived trade names and branding during the fourth quarter of each year. We also perform an assessment at other times if events or changes in circumstances indicate the carrying value of the assets may not be recoverable. If, based on qualitative analysis, we determine it is more-likely-than-not the fair value of our reporting unit is less than its carrying amount, a quantitative impairment test is performed. Our qualitative analysis did not indicate impairment during any of the periods presented.
Indefinite-Lived Intangible Assets Our indefinite-lived domain portfolio is reviewed for impairment annually during the fourth quarter of each year. We also perform an assessment at other times if events or changes in circumstances indicate the carrying amount of the asset may not be fully recoverable. Any identified impairment loss is treated as a permanent reduction in the carrying amount of the asset. We did not record an impairment loss during any of the periods presented.
Finite-Lived Intangible Assets
Long-Lived and Finite-Lived Intangible Assets
Finite-lived intangible assets are amortized over the following estimated useful lives:
Customer relationships
2-9 years
Developed technology
2-7 years
Trade names and other
4-10 years
Our finite-lived intangible assets are primarily amortized on a straight-line basis. We annually evaluate the estimated remaining useful lives of our intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization.
Impairment of Long-Lived and Finite-Lived Intangible Assets Long-lived and finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be fully recoverable. An impairment loss is recognized if the sum of the expected long-term undiscounted cash flows the asset is expected to generate is less than its carrying amount. Any write-downs are treated as permanent reductions in the carrying amount of the respective asset.
Debt Issuance Costs
Debt Issuance Costs
We defer and amortize issuance costs, underwriting fees and related expenses incurred in connection with the issuance of debt instruments using the effective interest method over the terms of the respective instruments. Debt issuance costs, other than those associated with our revolving credit loan, are reflected as a direct reduction of the carrying amount of the related debt liability. Debt issuance costs related to our revolving credit loan are reflected as an asset.
Derivative Financial Instruments
Derivative Financial Instruments
We are exposed to changes in foreign currency exchange rates as well as changes in interest rates associated with our variable-rate debt. Consequently, we use derivative financial instruments to manage and mitigate such risks. We do not enter into derivative transactions for speculative or trading purposes.
Our derivative financial instruments include foreign exchange forward contracts with financial institutions to hedge certain forecasted sales transactions denominated in currencies other than the United States (U.S.) dollar. In addition, we have entered into an interest rate swap on a portion of our long-term debt and a cross-currency swap on certain of our intercompany debt to manage the variability of cash flows due to movements in interest rates and foreign currency exchange rates. We have designated each of these instruments as a cash flow hedge.
We expect each derivative instrument qualifying for hedge accounting will be highly effective at reducing the risk associated with the exposure being hedged. For each derivative instrument designated as a hedge, we formally document the related risk management strategy and objective, including identification of the hedging instrument, the hedged item and the risk of exposure, as well as how hedge effectiveness will be assessed prospectively and retrospectively over the instrument's term. To assess effectiveness of our swap instruments, we use regression analysis performed utilizing the Hypothetical Derivative Method to compare the change in fair value of the derivative instrument designated as the hedging instrument to the change in the fair value of a similarly modeled hypothetical derivative using the same discount rate. Following our initial quantitative assessment, we may perform subsequent assessments on a qualitative basis unless facts and circumstances change such that we can no longer qualitatively assert that our hedges are highly effective.
We reflect unrealized gains or losses on our cash flow hedges as a component of accumulated other comprehensive income (loss) (AOCI). Gains and losses, once realized, are recorded as a component of AOCI and are amortized to earnings over the same period in which the underlying hedged amounts are recognized. At inception, and each reporting period, we evaluate the effectiveness of each of our hedges, and all hedges were determined to be effective.
Our derivative instruments are recorded at fair value on a gross basis. For cash flow reporting purposes, proceeds received or amounts paid upon the settlement of a derivative instrument are classified in the same manner as the related item being hedged, primarily within cash flows from operating activities.
Leases
Leases
We lease office and data center space in various locations. Prior to our adoption of the new lease standard on January 1, 2019, rent expense under operating leases was recognized on a straight-line basis over the lease term taking into consideration rent abatements, scheduled rent increases and any lease incentives.
Adoption of New Standard on Leases
On January 1, 2019, we adopted the Financial Accounting Standards Board's (FASB) new lease accounting standard using a modified retrospective transition and recorded a $3.3 million cumulative-effect adjustment to beginning retained earnings (the effective date method). Under the effective date method, comparative period financial information is not adjusted. The new standard requires lessees to recognize a right-of-use (ROU) asset and lease liability on the balance sheet for operating
leases while the accounting for finance leases is substantially unchanged. We recognized $111.3 million and $108.0 million of additional assets and liabilities, respectively, upon adoption of the new standard. The impact to deferred taxes was immaterial.
The increases to assets and liabilities resulting from the recognition of ROU assets and operating lease liabilities included the derecognition of existing assets and liabilities related to leases. The most significant impact resulted from the derecognition of our lease financing obligation and related building asset. At adoption, we were required to reassess whether the failed sale-leaseback transaction that resulted in our previous recognition of a lease financing obligation and related building asset would have met the sale criteria under the new standard. We concluded that the sale criteria would have been met and recognized a $3.3 million adjustment to beginning retained earnings as a result of the derecognition of the lease financing obligation and related building asset. The previously recognized lease financing obligation is now classified as an operating lease and was included in the initial measurement of the ROU assets and operating lease liabilities.
We have adopted the package of practical expedients allowing us to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. Adoption of this standard did not have a material impact to our statements of operations or cash flows.
We determine whether a contract contains a lease at contract inception. We have lease agreements with lease and non-lease components and have elected the practical expedient to account for such components as a single lease component. This election must be made by class of underlying asset and was elected for our leases of office space, data center space and server equipment. We initially recognize and measure contracts containing a lease and determine lease classification at commencement. ROU assets and operating lease liabilities are measured based on the estimated present value of lease payments over the lease term. In determining the present value of lease payments, we use our estimated incremental borrowing rate when the rate implicit in the lease cannot be readily determined. The estimated incremental borrowing rate is based upon information available at lease commencement including publicly available data for debt instruments. The lease term includes periods covered by options to extend when it is reasonably certain we will exercise such options as well as periods subsequent to an option to terminate the lease if it is reasonably certain we will not exercise the termination option. Operating lease costs are recognized on a straight-line basis over the lease term while finance leases result in a front-loaded expense pattern. Variable lease costs are recognized as incurred. On our balance sheets, assets and liabilities associated with operating leases are included within operating lease assets, accrued expenses and other current liabilities and operating lease liabilities. Assets and liabilities associated with finance leases are included in property and equipment, net, accrued expenses and other current liabilities and other long-term liabilities.
See Note 12 for additional information regarding leases.
Foreign Currency
Foreign Currency
Our functional and reporting currency is the U.S. dollar. Assets denominated in foreign currencies are remeasured into U.S. dollars at period-end exchange rates. Foreign currency-based revenue and expense transactions are measured at transaction date exchange rates. Foreign currency remeasurement gains and losses are recorded in other income (expense), net and were $(7.1) million, $(10.4) million and $(1.5) million during 2019, 2018 and 2017, respectively.
For certain of our foreign subsidiaries whose functional currency is other than the U.S. dollar, we translate revenue and expense transactions at average exchange rates. We translate assets and liabilities at period-end exchange rates and include foreign currency translation gains and losses as a component of AOCI.
Revenue Recognition
Revenue Recognition
Revenue is recognized when control of the promised product or service (product) is transferred to our customers, in an amount reflecting the consideration we expect to be entitled to in exchange for such product.
We typically receive payment at the time of sale, the purpose of which is to provide our customers with a simplified and predictable way of purchasing our products. We have determined that our contracts do not include a significant financing component. Payments received in advance of our performance are recorded as deferred revenue. Revenue is recognized net of allowances for returns and applicable transaction-based taxes collected from customers.
Our products are generally sold with a right of return within our policy, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Refunds are estimated at contract inception using the expected value method based on historical refund experience and updated each reporting period as additional information becomes available and only to the extent it is probable a significant reversal of any incremental revenue will not occur. Refunds result in a reduced amount of revenue recognized over the contract term of the applicable product.
Our revenue is categorized and disaggregated as reflected in our statements of operations, as follows:
Domains. Domains revenue primarily consists of domain registrations and renewals, domain privacy, domain application fees, domain back-orders, aftermarket domain sales and fee surcharges paid to ICANN. Consideration is recorded as deferred revenue when received, which is typically at the time of sale, and revenue, other than for aftermarket domain sales, is recognized ratably over the period in which the performance obligations are satisfied, which is generally over the contract term. Aftermarket domain revenue is recognized at the time when ownership of the domain is transferred to the buyer.
Hosting and presence. Hosting and presence revenue primarily consists of website hosting products, website building products, website security products and online visibility products. Consideration is recorded as deferred revenue when received, which is typically at the time of sale, and revenue is recognized ratably over the period in which the performance obligations are satisfied, which is generally over the contract term.
Business applications. Business applications revenue primarily consists of third-party productivity applications, email accounts, email marketing tools and telephony solutions. Consideration is recorded as deferred revenue when received, which is typically at the time of sale, and revenue is recognized ratably over the period in which the performance obligations are satisfied, which is generally over the contract term.
See Note 8 for additional information regarding our deferred revenue. See Note 18 for our revenue disaggregated by geography.
Performance Obligations
Our contracts with customers may include multiple performance obligations, including a combination of some or all of the following products: domain registrations, website hosting products, website building products, website security products and other cloud-based products. Judgment may be required in determining whether products are considered distinct performance obligations that should be accounted for separately or as one combined performance obligation. Revenue is recognized ratably over the period in which the performance obligations are satisfied, which is generally over the contract term.
For each domain registration or renewal we provide, we have one performance obligation to our customers consisting of two promises: 1) to ensure the exclusive use of the domain during the applicable registration term and 2) to ensure the domain is accessible and appropriately directed to its underlying content. After the contract term expires, unless renewed, the customer can no longer access or use the domain. We have determined these promises are not distinct within the context of our contracts as they are highly interdependent and interrelated and are inputs to a combined benefit. Accordingly, we concluded that each domain registration or renewal represents one product offering and is a single performance obligation.
We may also offer specific arrangements, such as our Websites + Marketing solution, in which we include promises to transfer multiple performance obligations in a single product offering. For such arrangements, we allocate the transaction price to each of the underlying distinct performance obligations based on its relative stand-alone selling price (SSP), as described below.
We have determined that generally each of our other products constitutes an individual product offering to our customers, and therefore have concluded that each is a single performance obligation.
For arrangements with multiple performance obligations, we allocate revenue to each distinct performance obligation based on its relative SSP. We use judgment to determine SSP based on prices charged to customers for individual products, taking into consideration factors including historical and expected discounting practices, the size, volume and term length of transactions, customer demographics, the geographic areas in which our products are sold and our overall go-to-market strategy.
Principal versus Agent Considerations
We sell our products 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 our determination as to whether we act as principal or agent in the transaction. Revenue associated with sales through our network of resellers, for certain aftermarket domain sales and for third-party offerings is recorded on a gross basis as we have determined that we control the product before transferring it to our end customers.
Assets Recognized from Contract Costs
Commissions paid to our resellers represent an incremental cost of obtaining a contract with a customer. We capitalize and amortize such amounts to cost of revenue consistent with the pattern of transfer of the product to which the asset relates. Amounts capitalized and amortized were not material during any of the periods presented.
Fees paid to various registries at the inception of a domain registration or renewal represent costs to fulfill a contract. We capitalize and amortize these prepaid domain name registry fees to cost of revenue consistent with the pattern of transfer of the product to which the asset relates. Amortization expense of such asset was $614.7 million, $597.1 million and $554.4 million during 2019, 2018 and 2017, respectively.
No other material contract costs were capitalized during any of the periods presented.
Cost of Revenue (excluding depreciation and amortization)
Costs of revenue are the direct costs we incur in connection with selling an incremental product to our customers. Substantially all cost of revenue relates to domain registration fees paid to the various domain registries, payment processing fees, third-party commissions and licensing fees for third-party productivity applications.
Technology and Development
Technology and Development
Technology and development expenses represent the costs associated with the creation, development and distribution of our products and websites. These expenses primarily consist of personnel costs associated with the design, development, deployment, testing, operation and enhancement of our products, as well as costs associated with the data centers and systems infrastructure supporting those products, excluding depreciation expense.
Marketing and Advertising, Customer Care and General and Administrative
Marketing and Advertising
Marketing and advertising expenses represent the costs associated with attracting and acquiring customers, primarily consisting of fees paid to third parties for marketing and advertising campaigns across a variety of channels. These expenses also include personnel costs and affiliate program commissions.
Advertising costs are expensed either as incurred, at the time a commercial initially airs or when a promotion first appears in the media. Advertising expenses were $260.0 million, $231.1 million and $205.8 million during 2019, 2018 and 2017, respectively. Prepaid advertising, which is included within prepaid expenses and other current assets, was $6.3 million and $9.7 million at December 31, 2019 and 2018, respectively.
Customer Care
Customer care expenses represent the costs to guide and service our customers, primarily consisting of personnel costs.
General and Administrative
General and administrative expenses primarily consist of personnel costs for our administrative functions, professional service fees, office rent for all locations, all employee travel expenses, acquisition-related expenses and other general costs.
Equity-Based Compensation
Equity-Based Compensation
We grant stock 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 restricted stock units (RSUs) vesting solely upon the continued service of the recipient as well as awards vesting upon the achievement of annual or cumulative financial-based targets (PSUs). We recognize the accounting 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, we recognize expense separately for each vesting tranche. We also estimate when and if PSUs will be earned. If an award is not considered probable of being earned, no amount of expense is recognized. If the award is deemed probable of being earned, expense is recorded over the estimated service period.
Equity-based awards are accounted for using the fair value method. RSUs and PSUs are measured based on the fair market value of the underlying common stock on their respective accounting grant dates. Grant date fair values for options are determined using the Black-Scholes option pricing model and a single option award approach. The accounting grant date for PSUs is the date on which the applicable performance criteria are approved by our board of directors (the Board). The fair value of shares issued under our employee stock purchase plan is estimated on the first day of each offering period using the Black-Scholes option pricing model. We utilize an estimate of future award forfeitures, which is based on historical data, in our equity-based compensation expense calculations. We regularly estimate when and if PSUs will be earned and record expense only for awards considered probable of being earned.
Key assumptions used in the determination of fair value for 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 volatility of our Class A common stock and the historical volatilities of a peer group. Industry peers consist of several public companies in the technology industry similar to us in size, stage of life cycle and financial leverage. We intend to continue to consistently apply this process using the same or similar public companies until a sufficient trading history of our Class A common stock becomes available. If circumstances change such that the identified companies are no longer similar to us, we will revise our peer group to substitute more suitable companies in this calculation.
Expected dividend yield. We do not use a dividend rate due to our expectation of not paying dividends in the foreseeable future.
Risk-free interest rate. We base the risk-free interest rate on the yield curve of a zero-coupon U.S. Treasury bond with a maturity equal to the expected term of the option on the grant date.
Income Taxes
Income Taxes
We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets (DTAs) and liabilities (DTLs) for the expected future tax consequences of events included in the financial statements. Under this method, we determine DTAs and DTLs on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on DTAs and DTLs is recognized in the period in which the enactment date occurs.
We recognize DTAs to the extent we believe these assets are more-likely-than-not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent results of operations.
We record uncertain tax positions on the basis of a two-step process in which (1) we determine whether it is more-likely-than-not the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions meeting the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority.
Interest and penalties related to income taxes are included in benefit (provision) for income taxes, and were not material during any of the periods presented.
Fair Value Measurements
Fair Value Measurements
Fair value is defined as an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. The framework for measuring fair value provides a three-tier hierarchy prioritizing inputs to valuation techniques used in measuring fair value as follows:
Level 1— Observable inputs such as quoted prices for identical assets or liabilities in active markets;
Level 2— Inputs, other than quoted prices for identical assets or liabilities in active markets, which are observable either directly or indirectly; and
Level 3— Unobservable inputs in which there is little or no market data requiring the reporting entity to develop its own assumptions.
We hold certain assets required to be measured at fair value on a recurring basis. These may include reverse repurchase agreements, commercial paper or other securities, which are classified as either cash and cash equivalents or short-term investments. We classify these assets within Level 1 or Level 2 because we use either quoted market prices or alternative pricing sources utilizing market observable inputs to determine their fair value. In addition, Level 2 assets and liabilities include derivative financial instruments associated with hedging activity, as further discussed in Note 11. Derivative financial instruments are measured at fair value on the contract date and are subsequently remeasured each reporting period using inputs such as spot rates, discount rates and forward rates. There are not active markets for the hedge contracts themselves; however, the inputs used to calculate the fair value of the instruments are tied to active markets.
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.
Concentrations of Risks
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 a service disruption or disaster at any of our data center facilities. We serve our customers and users from data center facilities operated either by us or third parties, which are located in Arizona, California, Missouri, Virginia, New York, France, Germany, the Netherlands, Singapore and the United Kingdom (U.K.). 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
Recent Accounting Pronouncements
In June 2016, the FASB issued new guidance for the accounting for credit losses on instruments that will require entities to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial instruments measured at amortized cost and also applies to some off-balance sheet credit exposures. We do not expect our adoption of this guidance on January 1, 2020 to have a material impact.
In January 2017, the FASB issued new guidance simplifying the goodwill impairment test, eliminating the requirement for an entity to determine the fair value of its assets and liabilities (including unrecognized assets and liabilities) at the impairment testing date following the procedure that would be required in determining the fair value of assets acquired and
liabilities assumed in a business combination. Instead, an entity will be required to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity will be required to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. Our adoption of this guidance on January 1, 2019 did not have a material impact.
In August 2018, the FASB issued new guidance to modify or eliminate certain fair value disclosures and require additional disclosures for Level 3 measurements. We do not expect our adoption of this guidance on January 1, 2020 to have a material impact.
In August 2018, the FASB issued new guidance aligning the accounting for implementation costs incurred in cloud computing arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We plan to adopt this guidance prospectively on January 1, 2020 and do not expect a material impact at adoption.
In December 2019, the FASB issued new guidance to simplify the accounting for income taxes primarily by eliminating certain exceptions allowable under the existing guidance related to the approach for intraperiod tax allocations, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The guidance is effective for annual and interim reporting periods beginning after December 15, 2020, with early adoption permitted. We are currently evaluating the timing of our adoption and the expected impact of this new guidance.
v3.19.3.a.u2
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Property, Plant and Equipment
Property and equipment consisted of the following:
Estimated
Useful Lives		December 31,
20192018
Computer equipment3 years$434.8  $417.6  
Software3 years55.9  40.5  
LandIndefinite9.0  9.0  
Buildings, including improvements
5-40 years
145.5  175.0  
Leasehold improvementsLesser of useful life or remaining lease term99.4  70.8  
Other
1-20 years
25.7  27.0  
Total property and equipment770.3  739.9  
Less: accumulated depreciation and amortization(511.7) (440.9) 
Property and equipment, net$258.6  $299.0  
Schedule of Finite-Lived Intangible Assets
Finite-lived intangible assets are amortized over the following estimated useful lives:
Customer relationships
2-9 years
Developed technology
2-7 years
Trade names and other
4-10 years
Intangible assets, net are summarized as follows:
December 31, 2019
Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount
Indefinite-lived intangible assets:
Trade names and branding$445.0  n/a  $445.0  
Domain portfolio148.1  n/a  148.1  
Finite-lived intangible assets:
Customer-related838.4  $(475.6) 362.8  
Developed technology151.5  (67.3) 84.2  
Trade names and other81.4  (23.8) 57.6  
$1,664.4  $(566.7) $1,097.7  

December 31, 2018
Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount
Indefinite-lived intangible assets:
Trade names and branding$445.0  n/a  $445.0  
Domain portfolio152.4  n/a  152.4  
Finite-lived intangible assets:
Customer-related850.5  $(407.5) 443.0  
Developed technology206.9  (103.1) 103.8  
Trade names and other92.9  (25.6) 67.3  
$1,747.7  $(536.2) $1,211.5  
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
The fair value of options granted was estimated using the following weighted-average assumptions:
Year Ended December 31,
201920182017
Expected term (in years)6.16.16.1
Expected volatility31.2 %31.5 %37.4 %
Risk-free interest rate2.2 %2.7 %2.0 %
Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables set forth assets and liabilities measured at fair value on a recurring basis:
December 31, 2019
Assets:Level 1Level 2Level 3Total
Cash and cash equivalents:
Reverse repurchase agreements(1)
$—  $70.0  $—  $70.0  
Commercial paper—  102.0  —  102.0  
Money market funds and time deposits444.0  —  —  444.0  
Short-term investments:
Commercial paper and other0.7  22.9  —  23.6  
Total assets measured and recorded at fair value$444.7  $194.9  $—  $639.6  
Liabilities:
Contingent consideration liabilities$—  $—  $2.6  $2.6  
Derivative liabilities—  93.8  —  93.8  
Total liabilities measured and recorded at fair value$—  $93.8  $2.6  $96.4  
_________________________________
(1) Reverse repurchase agreements include a $70.0 million repurchase agreement with Morgan Stanley, callable with 31 days notice.
December 31, 2018
Assets:Level 1Level 2Level 3Total
Cash and cash equivalents:
Reverse repurchase agreements(1)
$—  $70.0  $—  $70.0  
Commercial paper—  71.4  —  71.4  
Money market funds338.6  —  —  338.6  
Short-term investments:
Commercial paper and other1.0  18.0  —  19.0  
Total assets measured and recorded at fair value$339.6  $159.4  $—  $499.0  
Liabilities:
Contingent consideration liabilities$—  $—  $67.9  $67.9  
Derivative liabilities—  120.5  —  120.5  
Total liabilities measured and recorded at fair value$—  $120.5  $67.9  $188.4  
_________________________________
(1) Reverse repurchase agreements include a $70.0 million repurchase agreement with Morgan Stanley, callable with 31 days notice.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation The fair values of our contingent consideration arrangements are sensitive to changes in forecasts and discount rates. A reconciliation of these liabilities is as follows:
Year Ended December 31,
20192018
Balance at beginning of period$67.9  $20.7  
Acquisition date fair value of contingent consideration—  45.6  
Adjustments to fair value recognized in earnings2.6  11.9  
Contingent consideration payments(68.2) (11.2) 
Impact of foreign currency translation and other0.3  0.9  
Balance at end of period$2.6  $67.9  
v3.19.3.a.u2
Business Acquisitions (Tables)
 12 Months Ended
Dec. 31, 2019
Business Combinations [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The following table summarizes the final estimated acquisition date fair values of the MSH assets acquired and liabilities assumed:
Total purchase consideration$182.0  
Fair value of assets acquired and liabilities assumed:
Cash and cash equivalents8.0  
Intangible assets, net35.7  
Other assets and liabilities, net3.2  
Total assets acquired, net of liabilities assumed46.9  
Goodwill$135.1  
The following table summarizes the final estimated acquisition date fair values of the HEG assets acquired and liabilities assumed:
Total purchase consideration(1)
$1,849.5  
Fair value of assets acquired:
Cash and cash equivalents27.2  
Other current assets66.3  
Assets held for sale(2)
497.5  
Property and equipment, net61.9  
Intangible assets, net595.7  
Other assets9.3  
Amount attributable to assets acquired1,257.9  
Fair value of liabilities assumed:
Accounts payable and accrued expenses65.1  
Current portion of deferred revenue45.5  
Liabilities directly associated with the assets held for sale(2)
93.0  
Other long-term liabilities14.0  
Deferred tax liabilities177.6  
Amount attributable to liabilities assumed395.2  
Goodwill$986.8  
_________________________________
(1) The purchase consideration was translated using the Euro to U.S. dollar exchange rate in effect on the closing date of approximately 1.066.
(2) Assets held for sale, and liabilities directly associated with the assets held for sale, represented those of HEG's PlusServer managed hosting business (PlusServer), which met the criteria for held for sale designation at the acquisition date and was sold in August 2017. See Note 4 for further discussion.
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination
The purchase price allocation to identifiable finite-lived intangible assets acquired was as follows:
Finite-lived Intangible AssetsEstimated
Useful Lives
Trade names10 years$75.2  
Developed technology6 years62.4  
Customer relationships9 years458.1  
$595.7  
v3.19.3.a.u2
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The following table summarizes changes in our goodwill balance:
Balance at December 31, 2017$2,859.9  
Goodwill related to 2018 acquisitions(1)
139.8  
Impact of foreign currency translation(51.7) 
Balance at December 31, 20182,948.0  
Goodwill related to 2019 acquisitions20.9  
Impact of foreign currency translation7.6  
Balance at December 31, 2019$2,976.5  
_________________________________
(1) Includes immaterial measurement period adjustments related to acquisitions completed in 2017.
Schedule of Finite-Lived Intangible Assets
Finite-lived intangible assets are amortized over the following estimated useful lives:
Customer relationships
2-9 years
Developed technology
2-7 years
Trade names and other
4-10 years
Intangible assets, net are summarized as follows:
December 31, 2019
Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount
Indefinite-lived intangible assets:
Trade names and branding$445.0  n/a  $445.0  
Domain portfolio148.1  n/a  148.1  
Finite-lived intangible assets:
Customer-related838.4  $(475.6) 362.8  
Developed technology151.5  (67.3) 84.2  
Trade names and other81.4  (23.8) 57.6  
$1,664.4  $(566.7) $1,097.7  

December 31, 2018
Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount
Indefinite-lived intangible assets:
Trade names and branding$445.0  n/a  $445.0  
Domain portfolio152.4  n/a  152.4  
Finite-lived intangible assets:
Customer-related850.5  $(407.5) 443.0  
Developed technology206.9  (103.1) 103.8  
Trade names and other92.9  (25.6) 67.3  
$1,747.7  $(536.2) $1,211.5  
Schedule of Indefinite-Lived Intangible Assets
Intangible assets, net are summarized as follows:
December 31, 2019
Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount
Indefinite-lived intangible assets:
Trade names and branding$445.0  n/a  $445.0  
Domain portfolio148.1  n/a  148.1  
Finite-lived intangible assets:
Customer-related838.4  $(475.6) 362.8  
Developed technology151.5  (67.3) 84.2  
Trade names and other81.4  (23.8) 57.6  
$1,664.4  $(566.7) $1,097.7  

December 31, 2018
Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount
Indefinite-lived intangible assets:
Trade names and branding$445.0  n/a  $445.0  
Domain portfolio152.4  n/a  152.4  
Finite-lived intangible assets:
Customer-related850.5  $(407.5) 443.0  
Developed technology206.9  (103.1) 103.8  
Trade names and other92.9  (25.6) 67.3  
$1,747.7  $(536.2) $1,211.5  
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
Based on the balance of finite-lived intangible assets at December 31, 2019, expected future amortization expense is as follows:
Year Ending December 31:
2020$111.7  
202188.3  
202286.6  
202371.3  
202461.7  
Thereafter85.0  
$504.6  
v3.19.3.a.u2
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Schedule of Secondary Offerings and LLC Unit Repurchase Significant details for each offering are as follows:
Offering DateOffering Price Per Share ($)Shares Sold by GoDaddy (#)Gross Proceeds Received by GoDaddy ($)Aggregate Shares Sold by Selling Stockholders (#)LLC Units Exchanged by Selling Stockholders (#)Increase in Additional Paid-in Capital ($)
February 2019(1)
75.40  8  0.6  8,539  4,278  5.7  
August 2018(2)
75.75  8  0.6  10,391  7,405  7.8  
May 201870.73  —  —  11,625  8,052  7.6  
March 201859.21  —  —  16,916  12,821  11.2  
December 2017(3)
47.32  50  2.4  7,228  4,689  4.7  
September 201744.00  50  2.2  20,000  13,774  10.8  
May 201738.50  100  3.7  27,615  16,701  10.8  
_________________________________
(1) Following the February 2019 secondary offering, KKR and SLP no longer owned shares of GoDaddy's common stock.
(2) Following the August 2018 secondary offering, YAM no longer owned shares of GoDaddy's common stock.
(3) Following the December 2017 secondary offering, TCV no longer owned shares of GoDaddy's common stock.
v3.19.3.a.u2
Equity-Based Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award
Equity Plan Activity
The following table summarizes 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 ($)
Outstanding at December 31, 201618,628  14.06  
Granted2,077  15.07  38.03  
Exercised(6,000) 10.18  187.1  
Forfeited(1,245) 23.46  
Outstanding at December 31, 201713,460  18.63  
Granted1,208  22.19  61.49  
Exercised(4,779) 14.08  246.4  
Forfeited(362) 34.05  
Outstanding at December 31, 20189,527  25.77  
Granted1,401  24.91  71.74  
Exercised(3,976) 17.78  213.8  
Forfeited(648) 54.43  
Outstanding at December 31, 20196,304  38.08  5.9194.6  
Vested at December 31, 20193,916  25.31  4.8167.2  
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award
The following table summarizes RSU and PSU activity:
Number of
Shares of Class A Common Stock (#)
Outstanding at December 31, 20162,757  
Granted2,877  
Vested(939) 
Forfeited(496) 
Outstanding at December 31, 2017(1)
4,199  
Granted3,152  
Vested(1,545) 
Forfeited(450) 
Outstanding at December 31, 2018(1)
5,356  
Granted3,057  
Vested(2,187) 
Forfeited(986) 
Outstanding at December 31, 2019(1)
5,240  
_________________________________
(1) Includes PSUs for which performance targets have not yet been established, and which are not yet considered granted for accounting purposes. The balance of outstanding awards is comprised of the following:
Number of Shares of Class A Common Stock (#)Weighted Average Fair Value Per Share ($)
RSUs2,885  36.12
PSUs granted for accounting purposes409  37.13
PSUs not yet granted for accounting purposes905  N/A
Outstanding at December 31, 20174,199  
RSUs3,952  53.77
PSUs granted for accounting purposes505  63.18
PSUs not yet granted for accounting purposes899  N/A
Outstanding at December 31, 20185,356  
RSUs4,247  65.12
PSUs granted for accounting purposes401  73.28
PSUs not yet granted for accounting purposes592  N/A
Outstanding at December 31, 20195,240  
v3.19.3.a.u2
Deferred Revenue (Tables)
 12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Deferred Revenue, by Arrangement
Deferred revenue consisted of the following:
December 31,
20192018
Current:
Domains$752.7  $686.3  
Hosting and presence526.7  483.3  
Business applications265.0  224.1  
$1,544.4  $1,393.7  
Noncurrent:
Domains$382.2  $365.8  
Hosting and presence187.2  180.6  
Business applications85.0  77.4  
$654.4  $623.8  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction The deferred revenue balance as of December 31, 2019 represents our aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are satisfied, and is expected to be recognized as revenue as follows:
20202021202220232024ThereafterTotal
Domains$752.7  $199.0  $78.4  $44.7  $24.9  $35.2  $1,134.9  
Hosting and presence526.7  121.8  38.5  15.0  6.6  5.3  713.9  
Business applications265.0  58.7  19.3  4.0  1.6  1.4  350.0  
$1,544.4  $379.5  $136.2  $63.7  $33.1  $41.9  $2,198.8  
v3.19.3.a.u2
Accrued Expenses and Other Current Liabilities (Tables)
 12 Months Ended
Dec. 31, 2019
Payables and Accruals [Abstract]  
Schedule of Accounts Payable and Accrued Liabilities
Accrued expenses and other current liabilities consisted of the following:
December 31,
20192018
Accrued payroll and employee benefits$116.9  $105.9  
Derivative liabilities93.8  120.5  
Current portion of operating lease liabilities39.5  —  
Tax-related accruals30.8  38.4  
Accrued legal and professional28.7  10.9  
Accrued marketing and advertising expenses14.7  19.4  
Accrued acquisition-related expenses and acquisition consideration payable8.3  74.4  
Accrued other33.3  44.8  
$366.0  $414.3  
v3.19.3.a.u2
Long-Term Debt (Tables)
 12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
Long-term debt consisted of the following:
December 31,
20192018
Term Loans (effective interest rate of 4.7% at December 31, 2019 and 4.6% at December 31, 2018)
$1,832.3  $2,457.3  
Senior Notes (effective interest rate of 5.4% at December 31, 2019)
600.0  —  
Revolver
—  —  
Total2,432.3  2,457.3  
Less: unamortized original issue discount on long-term debt(1)
(13.2) (27.9) 
Less: unamortized debt issuance costs(1)
(23.9) (18.6) 
Less: current portion of long-term debt(18.4) (16.6) 
$2,376.8  $2,394.2  
_________________________________
(1) Original issue discount and debt issuance costs amortized to interest expense over the life of the related debt instruments using the effective interest method.
Schedule of Maturities of Long-term Debt
Aggregate principal payments, exclusive of any unamortized original issue discount and debt issuance costs, due on long-term debt as of December 31, 2019 are as follows:
Year Ending December 31:
2020$25.0  
202125.0  
202225.0  
202325.0  
20241,732.3  
Thereafter600.0  
$2,432.3  
v3.19.3.a.u2
Derivatives and Hedging (Tables)
 12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table summarizes our outstanding derivative instruments, all of which are designated as cash flow hedges, on a gross basis:
Notional Amount
Fair Value of Derivative Assets(2)
Fair Value of Derivative Liabilities(2)
December 31, 2019December 31, 2018December 31, 2019December 31, 2018December 31, 2019December 31, 2018
Derivative Instrument:
Level 2:
Foreign exchange forward contracts$138.9  $—  $—  $—  $3.3  $—  
Cross-currency swap(1)
1,355.8  1,397.8  —  —  64.1  119.1  
Interest rate swap1,289.0  1,302.3  —  —  26.4  1.4  
Total hedges$2,783.7  $2,700.1  $—  $—  $93.8  $120.5  
_________________________________
(1) The notional values of the cross-currency swap have been translated from Euros to U.S. dollars at the foreign currency rates in effect at December 31, 2019 and 2018 of approximately 1.12 and 1.14, respectively.
(2) In our balance sheets, all derivative assets are recorded within prepaid expenses and other current assets and all derivative liabilities are recorded within accrued expenses and other current liabilities.
Derivative Instruments, Gain (Loss)
The following table summarizes the effect of our designated cash flow hedging derivative instruments on AOCI:
Unrealized Gains (Losses) Recognized in Other Comprehensive Income
Year Ended December 31,
201920182017
Derivative Instrument:
Foreign exchange forward contracts(1)
$(2.7) $8.9  $(9.3) 
Cross-currency swap25.8  (3.5) (20.1) 
Interest rate swap(25.0) 17.7  (19.1) 
Total hedges$(1.9) $23.1  $(48.5) 
_________________________________
(1) Amounts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI.
The following table summarizes the locations and amounts of gains (losses) recognized within earnings related to our cash flow hedging relationships:
Year Ended December 31,
201920182017
RevenueInterest ExpenseOther Income (Expense), NetRevenueInterest ExpenseOther Income (Expense), NetRevenueInterest ExpenseOther Income (Expense), Net
Foreign Exchange Forward Contracts:
Reclassified from AOCI into income$3.2  $—  $—  $(2.1) $—  $—  $0.8  $—  $—  
Cross-Currency Swap:
Reclassified from AOCI into income (1)
—  30.1  28.1  —  28.3  65.9  —  21.6  (163.8) 
Interest Rate Swap:
Reclassified from AOCI into income—  (2.6) —  —  (6.5) —  —  (12.8) —  
Total hedges$3.2  $27.5  $28.1  $(2.1) $21.8  $65.9  $0.8  $8.8  $(163.8) 
_________________________________
(1) The amount reflected in other income (expense), net includes $(28.7) million, $(67.3) million and $162.8 million reclassified from AOCI to offset the earnings impact of the remeasurement of the Euro-denominated intercompany loan hedged by the cross-currency swap during 2019, 2018 and 2017, respectively.
v3.19.3.a.u2
Leases (Tables)
 12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Components of Lease Expenses
The components of operating lease expense were as follows:

Year Ended December 31, 2019
Operating lease costs$55.6  
Variable lease costs8.8  
Sublease income(3.0) 
Net lease costs$61.4  
Operating Lease Liabilities, Balance Sheet Information
Supplemental cash flow information related to operating leases was as follows:

Year Ended December 31, 2019
Cash paid for amounts included in the measurement of operating lease liabilities$50.0  
ROU assets obtained in exchange for operating lease obligations126.3  
Operating lease liabilities are included in our balance sheets as follows:

December 31, 2019
Accrued expenses and other current liabilities$39.5  
Operating lease liabilities, net of current portion192.9  
$232.4  
Maturities of Lease Liabilities
Maturities of operating lease liabilities as of December 31, 2019 were as follows:

Year Ending December 31:
2020$50.6  
202144.9  
202233.1  
202325.6  
202424.3  
Thereafter110.0  
Total lease payments288.5  
Less: imputed interest(56.1) 
$232.4  
v3.19.3.a.u2
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Long-term Purchase Commitment Future minimum obligations under these non-cancelable agreements with initial terms in excess of one year at December 31, 2019 are as follows:
Year Ending December 31:
2020$48.9  
202148.0  
202248.5  
202324.5  
202410.6  
Thereafter0.3  
Total minimum payments$180.8  
v3.19.3.a.u2
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Benefit
Our benefit for income taxes includes U.S. federal, state and foreign income taxes. The domestic and foreign components of our income from continuing operations before income taxes were as follows:
Year Ended December 31,
201920182017
U.S.$176.4  $138.9  $180.6  
Foreign(50.0) (65.9) (73.8) 
Income from continuing operations before income taxes$126.4  $73.0  $106.8  
Our benefit for income taxes was as follows:
Year Ended December 31,
201920182017
Current:
Federal$(0.7) $(1.3) $(1.4) 
State(0.6) (0.7) (0.6) 
Foreign(7.8) (10.3) (9.5) 
(9.1) (12.3) (11.5) 
Deferred:
Federal4.4  1.4  9.6  
State0.4  1.0  0.8  
Foreign16.3  18.9  20.0  
21.1  21.3  30.4  
Benefit for income taxes$12.0  $9.0  $18.9  
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate was as follows:
Year Ended December 31,
201920182017
Expected provision at U.S. federal statutory tax rate$(26.5) $(15.3) $(37.4) 
Effect of U.S. federal rate reduction, net of the effect on valuation allowances—  —  7.9  
Effect of investment in Desert Newco7.1  13.1  27.4  
TRA liability adjustment1.7  0.3  24.3  
Foreign earnings2.1  3.1  (15.3) 
State taxes, net of federal benefit(1.2) 2.1  (3.1) 
Other(4.3) 0.9  0.5  
Effect of changes in valuation allowances, excluding effect of U.S. federal rate reduction33.1  4.8  14.6  
Benefit for income taxes$12.0  $9.0  $18.9  
Schedule of Deferred Tax Assets and Liabilities
The components of our deferred taxes were as follows:
December 31,
20192018
DTAs:
Investment in Desert Newco
$968.0  $942.5  
NOLs
476.1  391.3  
Deferred interest
34.1  19.3  
Operating lease liabilities
25.7  —  
TRA liability
24.4  22.1  
Other
8.9  15.9  
Valuation allowance
(1,497.0) (1,372.8) 
Total DTAs40.2  18.3  
DTLs:
Identified intangible assets
(112.8) (133.8) 
Operating lease assets
(22.7) —  
Total DTLs(135.5) (133.8) 
Net DTLs$(95.3) $(115.5) 
Summary of Operating Loss Carryforwards As of December 31, 2019, we have U.S. federal, state and foreign gross NOLs, credits and incentives, a portion of which will begin to expire in 2030, as follows:
Gross NOLs, Credits and IncentivesPortion Subject to a Valuation Allowance
Federal NOLs and credits$1,751.1  $1,747.2  
State NOLs, credits and incentives2,225.0  2,220.6  
Foreign NOLs31.4  24.2  
Total NOLs, credits and incentives$4,007.5  $3,992.0  
Summary of Tax Credit Carryforwards As of December 31, 2019, we have U.S. federal, state and foreign gross NOLs, credits and incentives, a portion of which will begin to expire in 2030, as follows:
Gross NOLs, Credits and IncentivesPortion Subject to a Valuation Allowance
Federal NOLs and credits$1,751.1  $1,747.2  
State NOLs, credits and incentives2,225.0  2,220.6  
Foreign NOLs31.4  24.2  
Total NOLs, credits and incentives$4,007.5  $3,992.0  
Schedule of Unrecognized Tax Benefits Roll Forward Our liability for unrecognized tax benefits as of December 31, 2019 was as follows:
Year Ended December 31, 2019
Balance at beginning of period$2.1  
Gross increases - tax positions in prior period4.5  
Gross increases - tax positions in current period2.7  
Balance at end of period$9.3  
v3.19.3.a.u2
Income Per Share (Tables)
 12 Months Ended
Dec. 31, 2019
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share is as follows:
Year Ended December 31,
201920182017
Numerator:
Income from continuing operations$138.4  $82.0  $125.7  
Income from discontinued operations, net of income taxes—  —  14.1  
Net income138.4  82.0  139.8  
Less: net income attributable to non-controlling interests1.4  4.9  3.4  
Net income attributable to GoDaddy Inc. $137.0  $77.1  $136.4  
Denominator:
Weighted-average shares of Class A common stock outstanding—basic173,431  155,234  108,779  
Effect of dilutive securities:
Class B common stock2,318  16,534  57,999  
Stock options4,369  7,123  8,791  
RSUs, PSUs and ESPP shares1,603  2,462  1,485  
Weighted-average shares of Class A Common stock outstanding—diluted181,721  181,353  177,054  
Net income attributable to GoDaddy Inc. per share of Class A common stock—basic:
Continuing operations$0.79  $0.50  $1.17  
Discontinued operations—  —  0.08  
Net income attributable to GoDaddy Inc.$0.79  $0.50  $1.25  
Net income attributable to GoDaddy Inc. per share of Class A common stock—diluted:(1)
Continuing operations$0.76  $0.45  $0.71  
Discontinued operations—  —  0.08  
Net income attributable to GoDaddy Inc.$0.76  $0.45  $0.79  
_________________________________
(1) The diluted income per share calculations exclude net income attributable to non-controlling interests.
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted income per share because the effect of including such potentially dilutive shares would have been antidilutive:
Year Ended December 31,
201920182017
Stock options, RSUs and PSUs1,784  982  1,700  
v3.19.3.a.u2
Geographic Information (Tables)
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
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,
201920182017
U.S.$1,979.6  $1,723.9  1,504.5  
International1,008.5  936.2  727.4  
$2,988.1  $2,660.1  $2,231.9  
Long-lived Assets by Geographic Areas
Property and equipment, net by geography was as follows:
Year Ended December 31,
20192018
U.S.200.4  231.0  
International58.2  68.0  
$258.6  $299.0  
v3.19.3.a.u2
Accumulated Other Comprehensive Loss (Tables)
 12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
AOCI Activity in Equity
The following table presents AOCI activity in equity:
Foreign Currency Translation Adjustments
Net Unrealized Gains (Losses) on Cash Flow Hedges(1)
Total Accumulated Other Comprehensive Income (Loss)
Gross balance as of December 31, 2017(2)
$(86.8) $(45.5) $(132.3) 
Other comprehensive income (loss) before reclassifications(5.5) (62.5) (68.0) 
Amounts reclassified from AOCI—  85.6  85.6  
Other comprehensive income (loss) - 2018(5.5) 23.1  17.6  
$(92.3) $(22.4) (114.7) 
Less: AOCI attributable to non-controlling interests42.6  
Balance as of December 31, 2018$(72.1) 
Gross balance as of December 31, 2018(2)
$(92.3) $(22.4) $(114.7) 
Other comprehensive income (loss) before reclassifications37.7  (60.7) (23.0) 
Amounts reclassified from AOCI—  58.8  58.8  
Other comprehensive income (loss) - 201937.7  (1.9) 35.8  
$(54.6) $(24.3) (78.9) 
Less: AOCI attributable to non-controlling interests0.7  
Balance as of December 31, 2019$(78.2) 
_________________________________
(1) Amounts shown for our foreign exchange forward contracts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI.
(2) Beginning balance is presented on a gross basis, excluding the allocation of AOCI attributable to non-controlling interests.
v3.19.3.a.u2
Selected Quarterly Financial Data (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Quarterly Financial Information The operating results for any quarter are not necessarily indicative of results for any future period.
Three Months Ended
Dec. 31, 2019Sept. 30, 2019Jun. 30, 2019Mar. 31, 2019Dec. 31, 2018Sept. 30, 2018Jun. 30, 2018Mar. 31, 2018
Total revenue$780.4  $760.5  $737.2  $710.0  $695.8  $679.5  $651.6  $633.2  
Operating income73.5  91.4  18.9  18.8  41.8  37.5  43.5  26.8  
Net income (loss)61.1  76.8  (12.7) 13.2  43.5  14.1  20.2  4.2  
Net income (loss) attributable to GoDaddy Inc.60.5  76.2  (12.6) 12.9  42.5  13.2  18.1  3.3  
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—basic$0.35  $0.44  $(0.07) $0.08  $0.25  $0.08  $0.12  $0.02  
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock—diluted$0.34  $0.42  $(0.07) $0.07  $0.24  $0.08  $0.11  $0.02  
v3.19.3.a.u2
Organization and Background (Details)
 12 Months Ended
Dec. 31, 2019
segment
Entity Information [Line Items]  
Number of operating segments 1
Number of reporting units 1
Desert Newco, LLC  
Entity Information [Line Items]  
Ownership percent in Desert Newco 99.00%
v3.19.3.a.u2
Summary of Significant Accounting Policies - Narrative (Details)
$ in Millions
 12 Months Ended
Apr. 07, 2015
agreement
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Jan. 01, 2019
USD ($)
Entity Information [Line Items]          
Cash and cash equivalents related to payment processor transactions   $ 25.4 $ 26.3    
Depreciation   86.5 97.4 $ 88.8  
Capitalized internal-use software costs   13.4      
Retained earnings (accumulated deficit)   (153.5) 164.8    
Operating lease, right-of-use asset   196.6      
Operating lease, liability   232.4      
Amortization expense, contract costs   614.7 597.1 554.4  
Advertising expense   260.0 231.1 $ 205.8  
Prepaid advertising   6.3 9.7    
Pre-IPO Owners | Investor | Tax Receivable Agreement          
Entity Information [Line Items]          
Number of tax receivable agreements | agreement 5        
Percent of tax benefits owed under tax receivable agreement 85.00%     85.00%  
Certain Pre-IPO Owners | Investor | Tax Receivable Agreement          
Entity Information [Line Items]          
Number of tax receivable agreements | agreement 4        
Percent of tax benefits owed under tax receivable agreement 85.00%        
Other Pre-IPO Owners | Investor | Tax Receivable Agreement          
Entity Information [Line Items]          
Percent of tax benefits owed under tax receivable agreement 85.00%        
Other Nonoperating Income (Expense)          
Entity Information [Line Items]          
Foreign currency (losses)   $ (7.1) $ (10.4) $ (1.5)  
Level 3 | Measurement Input, Probability Weightings Assigned          
Entity Information [Line Items]          
Measurement input of contingent consideration liability   1      
Minimum | Level 3 | Measurement Input, Discount Rate          
Entity Information [Line Items]          
Measurement input of contingent consideration liability   0.14      
Maximum | Level 3 | Measurement Input, Discount Rate          
Entity Information [Line Items]          
Measurement input of contingent consideration liability   0.25      
Accounting Standards Update 2016-02          
Entity Information [Line Items]          
Retained earnings (accumulated deficit)         $ 3.3
Operating lease, right-of-use asset         111.3
Operating lease, liability         $ 108.0
v3.19.3.a.u2
Summary of Significant Accounting Policies - Schedule of Property Plant and Equipment (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 770.3 $ 739.9
Less: accumulated depreciation and amortization (511.7) (440.9)
Property and equipment, net 258.6 299.0
Computer equipment    
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 434.8 417.6
Property and equipment, useful life 3 years  
Software    
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 55.9 40.5
Property and equipment, useful life 3 years  
Land    
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 9.0 9.0
Buildings, including improvements    
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 145.5 175.0
Buildings, including improvements | Minimum    
Property, Plant and Equipment [Line Items]    
Property and equipment, useful life 5 years  
Buildings, including improvements | Maximum    
Property, Plant and Equipment [Line Items]    
Property and equipment, useful life 40 years  
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 99.4 70.8
Other    
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 25.7 $ 27.0
Other | Minimum    
Property, Plant and Equipment [Line Items]    
Property and equipment, useful life 1 year  
Other | Maximum    
Property, Plant and Equipment [Line Items]    
Property and equipment, useful life 20 years  
v3.19.3.a.u2
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Details)
 12 Months Ended
Dec. 31, 2019
Customer relationships | Minimum  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible assets, useful life 2 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 2 years
Developed technology | Maximum  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible assets, useful life 7 years
Trade names and other | Minimum  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible assets, useful life 4 years
Trade names and other | Maximum  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible assets, useful life 10 years
v3.19.3.a.u2
Summary of Significant Accounting Policies - Assumptions Used in Valuing Stock Options (Details) - Stock options
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years) 6 years 1 month 6 days 6 years 1 month 6 days 6 years 1 month 6 days
Expected volatility 31.20% 31.50% 37.40%
Risk-free interest rate 2.20% 2.70% 2.00%
v3.19.3.a.u2
Summary of Significant Accounting Policies - Fair value of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Morgan Stanley    
Liabilities:    
Repurchase agreement amount $ 70.0 $ 70.0
Repurchase agreement, call option notice period 31 days 31 days
Fair Value, Measurements, Recurring    
Short-term investments:    
Total assets measured and recorded at fair value $ 639.6 $ 499.0
Liabilities:    
Contingent consideration liabilities 2.6 67.9
Derivative liabilities 93.8 120.5
Total liabilities measured and recorded at fair value 96.4 188.4
Fair Value, Measurements, Recurring | Reverse repurchase agreements    
Cash and cash equivalents:    
Cash and cash equivalents, fair value 70.0 70.0
Fair Value, Measurements, Recurring | Commercial paper    
Cash and cash equivalents:    
Cash and cash equivalents, fair value 102.0 71.4
Short-term investments:    
Short-term investments, fair value 23.6 19.0
Fair Value, Measurements, Recurring | Money market funds and time deposits    
Cash and cash equivalents:    
Cash and cash equivalents, fair value 444.0  
Fair Value, Measurements, Recurring | Money market funds    
Cash and cash equivalents:    
Cash and cash equivalents, fair value   338.6
Fair Value, Measurements, Recurring | Level 1    
Short-term investments:    
Total assets measured and recorded at fair value 444.7 339.6
Liabilities:    
Contingent consideration liabilities 0.0 0.0
Derivative liabilities 0.0 0.0
Total liabilities measured and recorded at fair value 0.0 0.0
Fair Value, Measurements, Recurring | Level 1 | Reverse repurchase agreements    
Cash and cash equivalents:    
Cash and cash equivalents, fair value 0.0 0.0
Fair Value, Measurements, Recurring | Level 1 | Commercial paper    
Cash and cash equivalents:    
Cash and cash equivalents, fair value 0.0 0.0
Short-term investments:    
Short-term investments, fair value 0.7 1.0
Fair Value, Measurements, Recurring | Level 1 | Money market funds and time deposits    
Cash and cash equivalents:    
Cash and cash equivalents, fair value 444.0  
Fair Value, Measurements, Recurring | Level 1 | Money market funds    
Cash and cash equivalents:    
Cash and cash equivalents, fair value   338.6
Fair Value, Measurements, Recurring | Level 2    
Short-term investments:    
Total assets measured and recorded at fair value 194.9 159.4
Liabilities:    
Contingent consideration liabilities 0.0 0.0
Derivative liabilities 93.8 120.5
Total liabilities measured and recorded at fair value 93.8 120.5
Fair Value, Measurements, Recurring | Level 2 | Reverse repurchase agreements    
Cash and cash equivalents:    
Cash and cash equivalents, fair value 70.0 70.0
Fair Value, Measurements, Recurring | Level 2 | Commercial paper    
Cash and cash equivalents:    
Cash and cash equivalents, fair value 102.0 71.4
Short-term investments:    
Short-term investments, fair value 22.9 18.0
Fair Value, Measurements, Recurring | Level 2 | Money market funds and time deposits    
Cash and cash equivalents:    
Cash and cash equivalents, fair value 0.0  
Fair Value, Measurements, Recurring | Level 2 | Money market funds    
Cash and cash equivalents:    
Cash and cash equivalents, fair value   0.0
Fair Value, Measurements, Recurring | Level 3    
Short-term investments:    
Total assets measured and recorded at fair value 0.0 0.0
Liabilities:    
Contingent consideration liabilities 2.6 67.9
Derivative liabilities 0.0 0.0
Total liabilities measured and recorded at fair value 2.6 67.9
Fair Value, Measurements, Recurring | Level 3 | Reverse repurchase agreements    
Cash and cash equivalents:    
Cash and cash equivalents, fair value 0.0 0.0
Fair Value, Measurements, Recurring | Level 3 | Commercial paper    
Cash and cash equivalents:    
Cash and cash equivalents, fair value 0.0 0.0
Short-term investments:    
Short-term investments, fair value 0.0 0.0
Fair Value, Measurements, Recurring | Level 3 | Money market funds and time deposits    
Cash and cash equivalents:    
Cash and cash equivalents, fair value $ 0.0  
Fair Value, Measurements, Recurring | Level 3 | Money market funds    
Cash and cash equivalents:    
Cash and cash equivalents, fair value   $ 0.0
v3.19.3.a.u2
Summary of Significant Accounting Policies - Schedule of Unobservable Inputs (Details) - Contingent Consideration Liability - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance at beginning of period $ 67.9 $ 20.7
Acquisition date fair value of contingent consideration 0.0 45.6
Adjustments to fair value recognized in earnings 2.6 11.9
Contingent consideration payments (68.2) (11.2)
Impact of foreign currency translation and other 0.3 0.9
Balance at end of period $ 2.6 $ 67.9
v3.19.3.a.u2
Business Acquisitions - Narrative (Details)
€ in Billions
 1 Months Ended 12 Months Ended
Jul. 31, 2018
USD ($)
Apr. 30, 2017
EUR (€)
Apr. 30, 2017
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Business Acquisition [Line Items]            
Goodwill       $ 2,976,500,000 $ 2,948,000,000.0 $ 2,859,900,000
Payments for previous acquisition       $ 88,000,000.0 $ 21,700,000 10,800,000
Main Street Hub            
Business Acquisition [Line Items]            
Total purchase consideration $ 182,000,000.0          
Contingent consideration 50,000,000.0          
Consideration payable $ 43,400,000          
Weighted average useful life 4 years 3 months 18 days          
Goodwill $ 135,100,000          
Host Europe Finance Co. Limited (HEG)            
Business Acquisition [Line Items]            
Total purchase consideration | €   € 1.7        
Weighted average useful life   8 years 9 months 18 days 8 years 9 months 18 days      
Acquisition related costs     $ 18,600,000      
Revenue of company acquired, since the acquisition           155,100,000
Net income (loss) from continuing operations attributable to GoDaddy Inc.           $ 17,200,000
Goodwill     986,800,000      
Intangible assets, net     595,700,000      
Net liabilities assumed     395,200,000      
Other Acquisitions            
Business Acquisition [Line Items]            
Consideration payable     $ 9,000,000.0      
Weighted average useful life   5 years 6 months 5 years 6 months      
Cash consideration     $ 45,700,000      
Contingent consideration liabilities     33,700,000      
Goodwill     63,500,000      
Expected tax deductible amount     0      
Intangible assets, net     28,500,000      
Net liabilities assumed     $ 12,600,000      
Developed technology | Host Europe Finance Co. Limited (HEG)            
Business Acquisition [Line Items]            
Weighted average useful life   6 years 6 years      
Intangible assets, net     $ 62,400,000      
Time-based Milestone Payments | Other Acquisitions            
Business Acquisition [Line Items]            
Contingent consideration liabilities     15,000,000.0      
Revenue and Integration Milestones | Other Acquisitions            
Business Acquisition [Line Items]            
Contingent consideration liabilities     $ 15,000,000.0      
v3.19.3.a.u2
Business Acquisitions - Schedule of Assets Acquired and Liabilities Assumed (Details)
$ in Millions, € in Billions
 1 Months Ended
Jul. 31, 2018
USD ($)
Apr. 30, 2017
EUR (€)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Apr. 30, 2017
USD ($)
€ / $
Fair value of liabilities assumed:            
Goodwill     $ 2,976.5 $ 2,948.0 $ 2,859.9  
Euro to U.S. dollar exchange rate for translation | € / $           1.066
Main Street Hub            
Business Acquisition [Line Items]            
Total purchase consideration $ 182.0          
Fair value of assets acquired:            
Cash and cash equivalents 8.0          
Intangible assets, net 35.7          
Other assets and liabilities, net 3.2          
Fair value of liabilities assumed:            
Total assets acquired, net of liabilities assumed 46.9          
Goodwill $ 135.1          
Host Europe Finance Co. Limited (HEG)            
Business Acquisition [Line Items]            
Total purchase consideration | €   € 1.7        
Total purchase consideration           $ 1,849.5
Fair value of assets acquired:            
Cash and cash equivalents           27.2
Other current assets           66.3
Assets held for sale           497.5
Property and equipment, net           61.9
Intangible assets, net           595.7
Other assets           9.3
Amount attributable to assets acquired           1,257.9
Fair value of liabilities assumed:            
Accounts payable and accrued expenses           65.1
Current portion of deferred revenue           45.5
Liabilities directly associated with the assets held for sale           93.0
Other long-term liabilities           14.0
Deferred tax liabilities           177.6
Amount attributable to liabilities assumed           395.2
Goodwill           $ 986.8
v3.19.3.a.u2
Business Acquisitions - Schedule of Finite-lived Intangible Assets (Details) - Host Europe Finance Co. Limited (HEG)
$ in Millions
 1 Months Ended
Apr. 30, 2017
USD ($)
Business Acquisition [Line Items]  
Weighted average useful life 8 years 9 months 18 days
Intangible assets, net $ 595.7
Trade names and other  
Business Acquisition [Line Items]  
Weighted average useful life 10 years
Intangible assets, net $ 75.2
Developed technology  
Business Acquisition [Line Items]  
Weighted average useful life 6 years
Intangible assets, net $ 62.4
Customer relationships  
Business Acquisition [Line Items]  
Weighted average useful life 9 years
Intangible assets, net $ 458.1
v3.19.3.a.u2
Sale of Discontinued Operations - Narrative (Details) - Aug. 31, 2017 - PlusServer
€ in Millions, $ in Millions
USD ($)
EUR (€)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Purchase price | €   € 447.7
Gain on disposal | $ $ 33.2  
v3.19.3.a.u2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Goodwill [Roll Forward]    
Balance, beginning of period $ 2,948.0 $ 2,859.9
Goodwill related to acquisitions 20.9 139.8
Impact of foreign currency translation 7.6 (51.7)
Balance, end of period $ 2,976.5 $ 2,948.0
v3.19.3.a.u2
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, accumulated amortization $ (566.7) $ (536.2)
Finite-lived intangible assets, net 504.6  
Indefinite-lived Intangible Assets [Line Items]    
Intangible assets, gross (excluding goodwill) 1,664.4 1,747.7
Intangible assets, net (excluding goodwill) 1,097.7 1,211.5
Trade names and branding    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets (excluding goodwill) 445.0 445.0
Domain Portfolio    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets (excluding goodwill) 148.1 152.4
Indefinite-lived intangible assets (excluding goodwill), gross 148.1 152.4
Customer-related    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, gross 838.4 850.5
Finite-lived intangible assets, accumulated amortization (475.6) (407.5)
Finite-lived intangible assets, net 362.8 443.0
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, gross 151.5 206.9
Finite-lived intangible assets, accumulated amortization (67.3) (103.1)
Finite-lived intangible assets, net 84.2 103.8
Trade names and other    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, gross 81.4 92.9
Finite-lived intangible assets, accumulated amortization (23.8) (25.6)
Finite-lived intangible assets, net $ 57.6 $ 67.3
v3.19.3.a.u2
Goodwill and Intangible Assets - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]      
Intangible assets purchased $ 4.7 $ 9.3 $ 52.0
Amortization expense $ 119.5 $ 136.7 117.0
Weighted Average      
Finite-Lived Intangible Assets [Line Items]      
Weighted average remaining amortization period 67 months    
Customer-related      
Finite-Lived Intangible Assets [Line Items]      
Intangible assets purchased     $ 1.5
Useful life     36 months
Customer-related | Weighted Average      
Finite-Lived Intangible Assets [Line Items]      
Weighted average remaining amortization period 87 months    
Developed technology | Weighted Average      
Finite-Lived Intangible Assets [Line Items]      
Weighted average remaining amortization period 41 months    
Trade names and other | Weighted Average      
Finite-Lived Intangible Assets [Line Items]      
Weighted average remaining amortization period 71 months    
Domain Portfolio      
Finite-Lived Intangible Assets [Line Items]      
Intangible assets purchased     $ 50.5
v3.19.3.a.u2
Goodwill and Intangible Assets - Future Amortization of Finite Lived Intangible Assets (Details)
$ in Millions
Dec. 31, 2019
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2020 $ 111.7
2021 88.3
2022 86.6
2023 71.3
2024 61.7
Thereafter 85.0
Finite-lived intangible assets, net $ 504.6
v3.19.3.a.u2
Stockholders' Equity - Restatement of Certificate of Incorporation (Details) - $ / shares
Dec. 31, 2019
Dec. 31, 2018
Mar. 31, 2015
Class of Stock [Line Items]      
Preferred stock shares authorized (in shares) 50,000,000 50,000,000 50,000,000
Preferred stock par value (in dollars per share) $ 0.001 $ 0.001 $ 0.001
Class A Common Stock      
Class of Stock [Line Items]      
Common stock shares authorized (in shares) 1,000,000,000 1,000,000,000 1,000,000,000
Common stock par value (in dollars per share) $ 0.001 $ 0.001 $ 0.001
Class B Common Stock      
Class of Stock [Line Items]      
Common stock shares authorized (in shares) 500,000,000 500,000,000 500,000,000
Common stock par value (in dollars per share) $ 0.001 $ 0.001 $ 0.001
v3.19.3.a.u2
Stockholders' Equity - Secondary Offerings and LLC Unit Repurchase (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 1 Months Ended 12 Months Ended
Feb. 28, 2019
Aug. 31, 2018
May 31, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
May 31, 2017
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Class of Stock [Line Items]                    
Proceeds from issuance of common stock               $ 0.0 $ 0.0 $ 22.9
Increase in additional paid-in capital               (9.7) $ (36.2) (73.6)
Repurchases of shares, amount               $ 458.6   $ 275.0
Secondary Offering                    
Class of Stock [Line Items]                    
Increase in additional paid-in capital $ 5.7 $ 7.8 $ 7.6 $ 11.2 $ 4.7 $ 10.8 $ 10.8      
LLC Units | Secondary Offering                    
Class of Stock [Line Items]                    
Sale of stock, price per share (in dollars per share)             $ 37.44      
Conversion of stock, shares converted (in shares)         4,689 13,774 16,701      
Repurchases of shares (in shares)             7,345      
Repurchases of shares, amount             $ 275.0      
Class A Common Stock | Underwritten Public Offering                    
Class of Stock [Line Items]                    
Sale of stock, price per share (in dollars per share) $ 75.40 $ 75.75 $ 70.73 $ 59.21 $ 47.32 $ 44.00 $ 38.50     $ 47.32
Sale of stock, number of shares issued (in shares) 8,539 10,391 11,625 16,916 7,228 20,000 27,615      
Proceeds from issuance of common stock $ 0.6 $ 0.6 $ 0.0 $ 0.0            
Class A Common Stock | Add-on Secondary Offering                    
Class of Stock [Line Items]                    
Sale of stock, number of shares issued (in shares)         50 50 100      
Proceeds from issuance of common stock         $ 2.4 $ 2.2 $ 3.7      
Class A Common Stock | Secondary Offering                    
Class of Stock [Line Items]                    
Sale of stock, number of shares issued (in shares) 8 8 0 0            
Class A Common Stock | Management Team Secondary Offering                    
Class of Stock [Line Items]                    
Sale of stock, number of shares issued (in shares)             521      
Proceeds from issuance of common stock             $ 19.2      
LLC Units | Secondary Offering                    
Class of Stock [Line Items]                    
Conversion of stock, shares converted (in shares) 4,278 7,405 8,052 12,821            
v3.19.3.a.u2
Stockholders' Equity - Share Repurchase Program (Details) - USD ($)
shares in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2017
Oct. 31, 2019
Nov. 30, 2018
Class of Stock [Line Items]        
Repurchases of shares, amount $ 458,600,000 $ 275,000,000.0    
2018 Share Repurchase Program | Class A Common Stock        
Class of Stock [Line Items]        
Authorized repurchase amount       $ 500,000,000.0
Repurchases of shares (in shares) 7,125      
Repurchases of shares, amount $ 458,600,000      
2019 Share Repurchase Program | Class A Common Stock        
Class of Stock [Line Items]        
Authorized repurchase amount     $ 500,000,000.0  
v3.19.3.a.u2
Equity-Based Compensation Plans - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Jan. 01, 2019
Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Equity-based compensation expense $ 147.0 $ 125.5 $ 76.4      
Stock options            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Unrecognized compensation costs $ 33.4          
Weighted average recognition period 2 years 4 months 24 days          
Restricted Stock Units (RSUs)            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Unrecognized compensation costs $ 190.3          
Weighted average recognition period 2 years 3 months 18 days          
2015 Equity Incentive Plan | Stock Compensation Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares reserved for future issuance (in shares)           10,285,000
Shares rolled over (in shares) 23,363,000          
Annual increase in shares reserved for issuance under equity incentive plan (in shares)           20,571,000
Annual increase in shares reserved for issuance under equity incentive plan, percent           4.00%
2015 Equity Incentive Plan | Class A Common Stock | Stock Compensation Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Additional capital shares reserved for future issuance (in shares)         6,992,000  
2011 Unit Incentive Plan and Other Unidentified Plan | Class A Common Stock | Stock Compensation Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares rolled over (in shares)           28,133,000
2015 Employee Stock Purchase Plan | Employee Stock            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares reserved for future issuance (in shares)           2,000,000
Shares rolled over (in shares) 3,575,000          
Annual increase in shares reserved for issuance under equity incentive plan (in shares)           1,000,000
Annual increase in shares reserved for issuance under equity incentive plan, percent           1.00%
2015 Employee Stock Purchase Plan | Class A Common Stock | Employee Stock            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Additional capital shares reserved for future issuance (in shares)         1,000,000  
Previously Reported | Performance Shares            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Equity-based compensation expense   $ 6.9 $ 5.7 $ 3.0    
v3.19.3.a.u2
Equity-Based Compensation Plans - Equity Based Award Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Stock options      
Options Outstanding      
Options outstanding, beginning of period (in shares) 9,527 13,460 18,628
Grants (in shares) 1,401 1,208 2,077
Exercises (in shares) (3,976) (4,779) (6,000)
Forfeitures (in shares) (648) (362) (1,245)
Options outstanding, end of period (in shares) 6,304 9,527 13,460
Weighted-average grant date fair value of options granted (in dollars per share) $ 24.91 $ 22.19 $ 15.07
Weighted Average Exercise Price      
Options outstanding, weighted average exercise price, beginning of period (in dollars per share) 25.77 18.63 14.06
Weighted-average exercise price of options granted (in dollars per share) 71.74 61.49 38.03
Weighted-average exercise price of options exercised (in dollars per share) 17.78 14.08 10.18
Weighted-average exercise price of options forfeited (in dollars per share) 54.43 34.05 23.46
Options outstanding, weighted average exercise price, end of period (in dollars per share) $ 38.08 $ 25.77 $ 18.63
Options, Additional Disclosures      
Options vested (in shares) 3,916    
Options vested, weighted average exercise price (in dollars per share) $ 25.31    
Options outstanding, weighted average remaining contractual life (in years) 5 years 10 months 24 days    
Options vested, weighted average remaining contractual life (in years) 4 years 9 months 18 days    
Options exercised, aggregate intrinsic value $ 213.8 $ 246.4 $ 187.1
Options outstanding, aggregate intrinsic value 194.6    
Options vested, aggregate intrinsic value $ 167.2    
RSU And PSU      
RSU and PSU Activity      
Outstanding, beginning of period (in shares) 5,356 4,199 2,757
Granted (in shares) 3,057 3,152 2,877
Vested (in shares) (2,187) (1,545) (939)
Forfeited (in shares) (986) (450) (496)
Outstanding, end of period (in shares) 5,240 5,356 4,199
Restricted Stock Units (RSUs)      
RSU and PSU Activity      
Outstanding, beginning of period (in shares) 3,952 2,885  
Outstanding, end of period (in shares) 4,247 3,952 2,885
Granted, weighted average grant date fair value (in dollars per share) $ 65.12 $ 53.77 $ 36.12
PSU Granted      
RSU and PSU Activity      
Outstanding, beginning of period (in shares) 505 409  
Outstanding, end of period (in shares) 401 505 409
Granted, weighted average grant date fair value (in dollars per share) $ 73.28 $ 63.18 $ 37.13
PSU Not Yet Granted      
RSU and PSU Activity      
Outstanding, beginning of period (in shares) 899 905  
Outstanding, end of period (in shares) 592 899 905
v3.19.3.a.u2
Deferred Revenue - Schedule of Deferred Revenue (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Disaggregation of Revenue [Line Items]    
Deferred revenue $ 1,544.4 $ 1,393.7
Deferred revenue, net of current portion 654.4 623.8
Domains    
Disaggregation of Revenue [Line Items]    
Deferred revenue 752.7 686.3
Deferred revenue, net of current portion 382.2 365.8
Hosting and presence    
Disaggregation of Revenue [Line Items]    
Deferred revenue 526.7 483.3
Deferred revenue, net of current portion 187.2 180.6
Business applications    
Disaggregation of Revenue [Line Items]    
Deferred revenue 265.0 224.1
Deferred revenue, net of current portion $ 85.0 $ 77.4
v3.19.3.a.u2
Deferred Revenue - Performance Obligation (Details)
$ in Millions
Dec. 31, 2019
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 2,198.8
Domains  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation 1,134.9
Hosting and presence  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation 713.9
Business applications  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation 350.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 1,544.4
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Domains  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 752.7
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Hosting and presence  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 526.7
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Business applications  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 265.0
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 379.5
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Domains  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 199.0
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Hosting and presence  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 121.8
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Business applications  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 58.7
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 136.2
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Domains  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 78.4
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Hosting and presence  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 38.5
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Business applications  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 19.3
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 63.7
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Domains  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 44.7
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Hosting and presence  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 15.0
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Business applications  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 4.0
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 33.1
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Domains  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 24.9
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Hosting and presence  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 6.6
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Business applications  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 1.6
Expected timing of satisfaction, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 41.9
Expected timing of satisfaction, period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Domains  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 35.2
Expected timing of satisfaction, period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Hosting and presence  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 5.3
Expected timing of satisfaction, period
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Business applications  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Aggregate remaining performance obligation $ 1.4
Expected timing of satisfaction, period
v3.19.3.a.u2
Deferred Revenue - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2019
USD ($)
Revenue from Contract with Customer [Abstract]  
Revenue recognized $ 1,488.2
v3.19.3.a.u2
Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Payables and Accruals [Abstract]    
Accrued payroll and employee benefits $ 116.9 $ 105.9
Derivative liabilities 93.8 120.5
Current portion of operating lease liabilities 39.5  
Tax-related accruals 30.8 38.4
Accrued legal and professional 28.7 10.9
Accrued marketing and advertising expenses 14.7 19.4
Accrued acquisition-related expenses and acquisition consideration payable 8.3 74.4
Accrued other 33.3 44.8
Accrued expenses and other current liabilities $ 366.0 $ 414.3
v3.19.3.a.u2
Long-Term Debt - Schedule of Long Term Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Nov. 30, 2017
Debt Instrument [Line Items]      
Long-term debt $ 2,432.3 $ 2,457.3  
Less unamortized original issue discounts on long-term debt (13.2) (27.9)  
Less unamortized deferred financing fees (23.9) (18.6)  
Less current portion of long-term debt (18.4) (16.6)  
Long-term debt, net of current portion 2,376.8 2,394.2  
Secured Debt      
Debt Instrument [Line Items]      
Less unamortized original issue discounts on long-term debt     $ (3.7)
Secured Debt | Term Loan      
Debt Instrument [Line Items]      
Long-term debt $ 1,832.3 $ 2,457.3  
Effective interest rate 4.70% 4.60%  
Senior Notes | Senior Notes      
Debt Instrument [Line Items]      
Long-term debt $ 600.0 $ 0.0  
Effective interest rate 5.40%    
Line of Credit | Revolver | Revolving Credit Facility      
Debt Instrument [Line Items]      
Long-term debt $ 0.0 $ 0.0  
v3.19.3.a.u2
Long-Term Debt- Narrative (Details)
 1 Months Ended 12 Months Ended
May 31, 2019
Oct. 31, 2019
Jun. 30, 2019
USD ($)
Nov. 30, 2017
USD ($)
Feb. 28, 2017
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Apr. 03, 2017
EUR (€)
Apr. 03, 2017
USD ($)
Jan. 31, 2017
USD ($)
Debt Instrument [Line Items]                      
Loss on debt extinguishment           $ 14,800,000 $ 0 $ 7,300,000      
Additional discount           13,200,000 27,900,000        
General and administrative [1]           362,100,000 $ 334,000,000.0 282,400,000      
Term Loan | London Interbank Offered Rate (LIBOR)                      
Debt Instrument [Line Items]                      
Basis spread on variable rate     1.75%                
Term Loan | London Interbank Offered Rate (LIBOR) | Option 1                      
Debt Instrument [Line Items]                      
Basis spread on variable rate     1.00%                
Term Loan | Base Rate                      
Debt Instrument [Line Items]                      
Basis spread on variable rate     0.75%                
Term Loan | Federal Funds Rate                      
Debt Instrument [Line Items]                      
Basis spread on variable rate     0.50%                
Secured Debt                      
Debt Instrument [Line Items]                      
Loss on debt extinguishment       $ 2,000,000.0              
Additional discount       3,700,000              
General and administrative       $ 3,300,000              
Secured Debt | Term Loan                      
Debt Instrument [Line Items]                      
Long-term debt, face amount                     $ 1,100,000,000.0
Loss on debt extinguishment     $ 14,500,000                
Prepayment of debt     600,000,000.0                
Decrease in interest rate margins   (0.25%)                  
Discount at original issue   0.125%                  
Secured Debt | Term Loan | Level 2                      
Debt Instrument [Line Items]                      
Debt, fair value           1,842,600,000          
Secured Debt | Term Loan | Minimum                      
Debt Instrument [Line Items]                      
Unused commitment fee upon achievement of certain financial ratios   0.125%                  
Secured Debt | Term Loan | Maximum                      
Debt Instrument [Line Items]                      
Unused commitment fee upon achievement of certain financial ratios   0.375%                  
Secured Debt | Refinanced Term Loan                      
Debt Instrument [Line Items]                      
Long-term debt, face amount         $ 1,072,500,000            
Term of note         7 years            
Secured Debt | Acquisition Term Loan                      
Debt Instrument [Line Items]                      
Long-term debt, face amount                   $ 1,425,000,000.0  
Secured Debt | Bridge Loan                      
Debt Instrument [Line Items]                      
Long-term debt, face amount                 € 500,000,000 533,000,000.0  
Secured Debt | Bridge Loan | PlusServer                      
Debt Instrument [Line Items]                      
Loss on debt extinguishment               5,300,000      
Interest expense               $ 12,400,000      
Senior Notes | Senior Notes                      
Debt Instrument [Line Items]                      
Long-term debt, face amount     $ 600,000,000.0                
Stated interest rate     5.25%                
Debt issuance costs     $ 9,700,000                
Redemption price, change of control, percent     101.00%                
Senior Notes | Senior Notes | Level 2                      
Debt Instrument [Line Items]                      
Debt, fair value           632,000,000.0          
Line of Credit | Revolver | Revolving Credit Facility                      
Debt Instrument [Line Items]                      
Maximum borrowing capacity     $ 600,000,000.0   $ 150,000,000.0         $ 200,000,000.0 $ 150,000,000.0
Term of note         5 years            
Maximum net leverage ratio 35.00%   20.00%                
Debt issuance costs     $ 3,400,000                
Available borrowing capacity           $ 600,000,000.0          
Line of Credit | Revolver | Revolving Credit Facility | Maximum                      
Debt Instrument [Line Items]                      
Net leverage ratio     5.75                
Line of Credit | Revolver | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum                      
Debt Instrument [Line Items]                      
Basis spread on variable rate     1.25%                
Line of Credit | Revolver | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum                      
Debt Instrument [Line Items]                      
Basis spread on variable rate     1.75%                
Line of Credit | Revolver | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Option 1                      
Debt Instrument [Line Items]                      
Basis spread on variable rate     1.00%                
Line of Credit | Revolver | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Option 1 | Minimum                      
Debt Instrument [Line Items]                      
Basis spread on variable rate     0.25%                
Line of Credit | Revolver | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Option 1 | Maximum                      
Debt Instrument [Line Items]                      
Basis spread on variable rate     0.75%                
Line of Credit | Revolver | Revolving Credit Facility | Federal Funds Rate                      
Debt Instrument [Line Items]                      
Basis spread on variable rate     0.50%                
Prior to June 1, 2022 | Senior Notes | Senior Notes                      
Debt Instrument [Line Items]                      
Redemption price, percent     100.00%                
Accrued and unpaid interest, plus applicable premium (not less than)     1.00%                
Redemption price, partial redemption, percent     105.25%                
June 1, 2022 - May 31, 2023 | Senior Notes | Senior Notes                      
Debt Instrument [Line Items]                      
Redemption price, percent     102.625%                
June 1, 2023 - May 31, 2024 | Senior Notes | Senior Notes                      
Debt Instrument [Line Items]                      
Redemption price, percent     101.75%                
June 1, 2024 - May 31, 2025 | Senior Notes | Senior Notes                      
Debt Instrument [Line Items]                      
Redemption price, percent     100.875%                
Thereafter | Senior Notes | Senior Notes                      
Debt Instrument [Line Items]                      
Redemption price, percent     100.00%                
[1]
(1) Costs and operating expenses include equity-based compensation expense as follows:
Cost of revenue$0.4  $—  $—  
Technology and development$70.3  $57.8  $37.1  
Marketing and advertising15.4  10.3  7.3  
Customer care9.3  6.2  3.6  
General and administrative51.6  51.2  28.4  
Total equity-based compensation expense$147.0  $125.5  $76.4  
v3.19.3.a.u2
Long-Term Debt - Schedule of Debt Maturities (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Debt Disclosure [Abstract]    
2020 $ 25.0  
2021 25.0  
2022 25.0  
2023 25.0  
2024 1,732.3  
Thereafter 600.0  
Long-term debt $ 2,432.3 $ 2,457.3
v3.19.3.a.u2
Derivatives and Hedging - Schedule of Derivative Instruments (Details)
€ in Millions, $ in Millions
Dec. 31, 2019
USD ($)
€ / $
Dec. 31, 2018
USD ($)
€ / $
Apr. 30, 2017
EUR (€)
€ / $
Apr. 30, 2017
USD ($)
€ / $
Derivatives, Fair Value [Line Items]        
Euro to U.S. dollar exchange rate for translation | € / $     1.066 1.066
Cash Flow Hedging | Cross-currency swap | Designated as Hedging Instrument        
Derivatives, Fair Value [Line Items]        
Notional Amount     € 1,243.3 $ 1,325.4
Euro to U.S. dollar exchange rate for translation | € / $ 1.12 1.14    
Cash Flow Hedging | Interest rate swap | Designated as Hedging Instrument        
Derivatives, Fair Value [Line Items]        
Notional Amount       $ 1,325.4
Level 2 | Cash Flow Hedging | Designated as Hedging Instrument        
Derivatives, Fair Value [Line Items]        
Notional Amount $ 2,783.7 $ 2,700.1    
Level 2 | Cash Flow Hedging | Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets        
Derivatives, Fair Value [Line Items]        
Derivative assets 0.0 0.0    
Level 2 | Cash Flow Hedging | Designated as Hedging Instrument | Accrued Expenses and Other Current Liabilities        
Derivatives, Fair Value [Line Items]        
Derivative liabilities 93.8 120.5    
Level 2 | Cash Flow Hedging | Foreign exchange forward contracts | Designated as Hedging Instrument        
Derivatives, Fair Value [Line Items]        
Notional Amount 138.9 0.0    
Level 2 | Cash Flow Hedging | Foreign exchange forward contracts | Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets        
Derivatives, Fair Value [Line Items]        
Derivative assets 0.0 0.0    
Level 2 | Cash Flow Hedging | Foreign exchange forward contracts | Designated as Hedging Instrument | Accrued Expenses and Other Current Liabilities        
Derivatives, Fair Value [Line Items]        
Derivative liabilities 3.3 0.0    
Level 2 | Cash Flow Hedging | Cross-currency swap | Designated as Hedging Instrument        
Derivatives, Fair Value [Line Items]        
Notional Amount 1,355.8 1,397.8    
Level 2 | Cash Flow Hedging | Cross-currency swap | Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets        
Derivatives, Fair Value [Line Items]        
Derivative assets 0.0 0.0    
Level 2 | Cash Flow Hedging | Cross-currency swap | Designated as Hedging Instrument | Accrued Expenses and Other Current Liabilities        
Derivatives, Fair Value [Line Items]        
Derivative liabilities 64.1 119.1    
Level 2 | Cash Flow Hedging | Interest rate swap | Designated as Hedging Instrument        
Derivatives, Fair Value [Line Items]        
Notional Amount 1,289.0 1,302.3    
Level 2 | Cash Flow Hedging | Interest rate swap | Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets        
Derivatives, Fair Value [Line Items]        
Derivative assets 0.0 0.0    
Level 2 | Cash Flow Hedging | Interest rate swap | Designated as Hedging Instrument | Accrued Expenses and Other Current Liabilities        
Derivatives, Fair Value [Line Items]        
Derivative liabilities $ 26.4 $ 1.4    
v3.19.3.a.u2
Derivatives and Hedging - Schedule of Derivative Instruments, Gain (Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Derivative [Line Items]                      
Unrealized Gains (Losses) Recognized in Other Comprehensive Income                 $ (1.9) $ 23.1 $ (48.5)
Revenue $ 780.4 $ 760.5 $ 737.2 $ 710.0 $ 695.8 $ 679.5 $ 651.6 $ 633.2 2,988.1 2,660.1 2,231.9
Interest expense                 92.1 98.4 83.0
Other income (expense), net                 22.0 6.9 7.0
Cash Flow Hedging | Designated as Hedging Instrument                      
Derivative [Line Items]                      
Unrealized Gains (Losses) Recognized in Other Comprehensive Income                 (1.9) 23.1 (48.5)
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange forward contracts                      
Derivative [Line Items]                      
Unrealized Gains (Losses) Recognized in Other Comprehensive Income                 (2.7) 8.9 (9.3)
Cash Flow Hedging | Designated as Hedging Instrument | Cross-currency swap                      
Derivative [Line Items]                      
Unrealized Gains (Losses) Recognized in Other Comprehensive Income                 25.8 (3.5) (20.1)
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swap                      
Derivative [Line Items]                      
Unrealized Gains (Losses) Recognized in Other Comprehensive Income                 (25.0) 17.7 (19.1)
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges                      
Derivative [Line Items]                      
Revenue                 3.2 (2.1) 0.8
Interest expense                 27.5 21.8 8.8
Other income (expense), net                 28.1 65.9 (163.8)
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | Foreign exchange forward contracts                      
Derivative [Line Items]                      
Revenue                 3.2 (2.1) 0.8
Interest expense                 0.0 0.0 0.0
Other income (expense), net                 0.0 0.0 0.0
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | Cross-currency swap                      
Derivative [Line Items]                      
Revenue                 0.0 0.0 0.0
Interest expense                 30.1 28.3 21.6
Other income (expense), net                 28.1 65.9 (163.8)
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | Interest rate swap                      
Derivative [Line Items]                      
Revenue                 0.0 0.0 0.0
Interest expense                 (2.6) (6.5) (12.8)
Other income (expense), net                 0.0 0.0 0.0
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Cash Flow Hedges | Euro-Denominated Intercompany Loan | Cross-currency swap                      
Derivative [Line Items]                      
Other income (expense), net                 $ (28.7) $ (67.3) $ 162.8
v3.19.3.a.u2
Derivatives and Hedging - Narrative (Details)
€ in Millions, $ in Millions
 1 Months Ended 12 Months Ended
Apr. 30, 2017
EUR (€)
Dec. 31, 2019
USD ($)
Apr. 30, 2017
USD ($)
Derivative [Line Items]      
Net deferred gains from cash flow hedges   $ 22.0  
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange forward contracts      
Derivative [Line Items]      
Derivative remaining maturity   18 months  
Cash Flow Hedging | Designated as Hedging Instrument | Cross-currency swap      
Derivative [Line Items]      
Notional Amount € 1,243.3   $ 1,325.4
Derivative term of contract 5 years    
Derivative fixed interest rate 5.44%   5.44%
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swap      
Derivative [Line Items]      
Notional Amount     $ 1,325.4
Derivative term of contract 5 years    
Derivative fixed interest rate 5.44%   5.44%
Euro-Denominated Intercompany Loan      
Derivative [Line Items]      
Interest rate 3.00%   3.00%
v3.19.3.a.u2
Leases - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2019
Leases [Abstract]      
Operating lease, remaining weighted average lease term     8 years 2 months 12 days
Operating lease, weighted average discount rate     5.30%
Rent expense $ 44.1 $ 38.3  
v3.19.3.a.u2
Leases - Components of Lease Expenses (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2019
USD ($)
Leases [Abstract]  
Operating lease costs $ 55.6
Variable lease costs 8.8
Sublease income (3.0)
Net lease costs $ 61.4
v3.19.3.a.u2
Leases - Cash Paid and ROU Assets Obtained in Exchange for Lease Obligations (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2019
USD ($)
Leases [Abstract]  
Cash paid for amounts included in the measurement of operating lease liabilities $ 50.0
ROU assets obtained in exchange for operating lease obligations $ 126.3
v3.19.3.a.u2
Leases - Operating Lease Liabilities, Balance Sheet Information (Details)
$ in Millions
Dec. 31, 2019
USD ($)
Leases [Abstract]  
Current portion of operating lease liabilities $ 39.5
Operating lease liabilities, net of current portion 192.9
Operating lease liabilities $ 232.4
v3.19.3.a.u2
Leases - Maturities of Lease Liabilities (Details)
$ in Millions
Dec. 31, 2019
USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]  
2020 $ 50.6
2021 44.9
2022 33.1
2023 25.6
2024 24.3
Thereafter 110.0
Total lease payments 288.5
Less: imputed interest (56.1)
Operating lease liabilities $ 232.4
v3.19.3.a.u2
Commitments and Contingencies - Future Minimum Payments (Details)
$ in Millions
Dec. 31, 2019
USD ($)
Service Agreements  
2020 $ 48.9
2021 48.0
2022 48.5
2023 24.5
2024 10.6
Thereafter 0.3
Total minimum payments $ 180.8
v3.19.3.a.u2
Commitments and Contingencies - Narrative (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 13, 2019
Jun. 30, 2019
Dec. 31, 2019
Dec. 31, 2018
Schedule of Capital Lease Obligations [Line Items]        
Estimated loss provision recorded   $ 18,100,000 $ 0  
Maximum | Class Action Complaint | Pending Litigation        
Schedule of Capital Lease Obligations [Line Items]        
Proposed settlement amount $ 35,000,000.0      
Indirect Taxation        
Schedule of Capital Lease Obligations [Line Items]        
Estimated tax liability     $ 9,400,000 $ 11,600,000
v3.19.3.a.u2
Defined Contribution Plan (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Retirement Benefits [Abstract]      
Maximum employee contributions, percent 100.00%    
Employer discretionary matching contribution $ 14.7 $ 13.5 $ 9.9
v3.19.3.a.u2
Income Taxes - Components of Income Tax Benefit (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]      
U.S. $ 176.4 $ 138.9 $ 180.6
Foreign (50.0) (65.9) (73.8)
Income from continuing operations before income taxes 126.4 73.0 106.8
Current:      
Federal (0.7) (1.3) (1.4)
State (0.6) (0.7) (0.6)
Foreign (7.8) (10.3) (9.5)
Total current (9.1) (12.3) (11.5)
Deferred:      
Federal 4.4 1.4 9.6
State 0.4 1.0 0.8
Foreign 16.3 18.9 20.0
Total deferred 21.1 21.3 30.4
Benefit for income taxes $ 12.0 $ 9.0 $ 18.9
v3.19.3.a.u2
Income Taxes - Income Tax Rate Reconciliation (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Effective Income Tax Rate Reconciliation, Amount [Abstract]      
Expected provision at U.S. federal statutory tax rate $ (26.5) $ (15.3) $ (37.4)
Effect of U.S. federal rate reduction, net of the effect on valuation allowances 0.0 0.0 7.9
Effect of investment in Desert Newco 7.1 13.1 27.4
TRA liability adjustment 1.7 0.3 24.3
Foreign earnings 2.1 3.1 (15.3)
State taxes, net of federal benefit (1.2) 2.1 (3.1)
Other (4.3) 0.9 0.5
Effect of changes in valuation allowances, excluding effect of U.S. federal rate reduction 33.1 4.8 14.6
Benefit for income taxes $ 12.0 $ 9.0 $ 18.9
v3.19.3.a.u2
Income Taxes - Net Deferred Tax Assets (Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
DTAs:    
Investment in Desert Newco $ 968.0 $ 942.5
NOLs 476.1 391.3
Deferred interest 34.1 19.3
Operating lease liabilities 25.7  
TRA liability 24.4 22.1
Other 8.9 15.9
Valuation allowance (1,497.0) (1,372.8)
Total DTAs 40.2 18.3
DTLs:    
Identified intangible assets (112.8) (133.8)
Operating lease assets (22.7)  
Total DTLs (135.5) (133.8)
Net DTLs $ (95.3) $ (115.5)
v3.19.3.a.u2
Income Taxes - Narrative (Details) - Desert Newco, LLC - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Income Tax Contingency [Line Items]    
Increase in deferred tax assets related to investment in Desert Newco $ 113.7 $ 648.3
Increase in deferred tax assets related to NOLs and credit carryforwards $ 94.4 $ 125.3
v3.19.3.a.u2
Income Taxes - Net Operating Losses, Credits and Incentives (Details)
$ in Millions
Dec. 31, 2019
USD ($)
Tax Credit Carryforward [Line Items]  
Gross NOLs, Credits and Incentives $ 4,007.5
Portion Subject to a Valuation Allowance 3,992.0
Federal NOLs and credits  
Tax Credit Carryforward [Line Items]  
Gross NOLs, Credits and Incentives 1,751.1
Portion Subject to a Valuation Allowance 1,747.2
State NOLs, credits and incentives  
Tax Credit Carryforward [Line Items]  
Gross NOLs, Credits and Incentives 2,225.0
Portion Subject to a Valuation Allowance 2,220.6
Foreign NOLs  
Tax Credit Carryforward [Line Items]  
Gross NOLs, Credits and Incentives 31.4
Portion Subject to a Valuation Allowance $ 24.2
v3.19.3.a.u2
Income Taxes - Unrecognized Tax Benefits (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2019
USD ($)
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]  
Balance at beginning of period $ 2.1
Gross increases - tax positions in prior period 4.5
Gross increases - tax positions in current period 2.7
Balance at end of period $ 9.3
v3.19.3.a.u2
Payable to Related Parties Pursuant to the TRAs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Apr. 07, 2015
Related Party Transaction [Line Items]        
Liability pursuant to the tax receivable agreements resulting from the pre-IPO organizational transactions $ (9.7) $ (36.2) $ (73.6)  
Benefit for income taxes 12.0 9.0 18.9  
Tax Receivable Agreement        
Related Party Transaction [Line Items]        
Benefit for income taxes 8.7 14.9    
Tax Receivable Agreement | Conversion of LLC Units to Class A Common Stock        
Related Party Transaction [Line Items]        
Liability pursuant to the tax receivable agreements resulting from the pre-IPO organizational transactions (9.7) (36.2)    
Pre-IPO Owners | Investor | Tax Receivable Agreement        
Related Party Transaction [Line Items]        
Payable to related parties pursuant to tax receivable agreements 175.3 $ 174.3 $ 153.0  
Percent of tax benefits owed under tax receivable agreement     85.00% 85.00%
Maximum TRA liability related to basis adjustment 1,140.9      
Maximum TRA liability related to pre-IPO organizational transactions $ 438.4      
v3.19.3.a.u2
Income Per Share - Reconciliation (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Numerator:                      
Income from continuing operations                 $ 138.4 $ 82.0 $ 125.7
Income from discontinued operations, net of income taxes                 0.0 0.0 14.1
Net income $ 61.1 $ 76.8 $ (12.7) $ 13.2 $ 43.5 $ 14.1 $ 20.2 $ 4.2 138.4 82.0 139.8
Less: net income attributable to non-controlling interests                 1.4 4.9 3.4
Net income attributable to GoDaddy Inc. $ 60.5 $ 76.2 $ (12.6) $ 12.9 $ 42.5 $ 13.2 $ 18.1 $ 3.3 $ 137.0 $ 77.1 $ 136.4
Class A Common Stock                      
Denominator:                      
Weighted-average shares of Class A common stock outstanding - basic (in shares)                 173,431 155,234 108,779
Weighted-average shares of Class A Common stock outstanding - diluted (in shares)                 181,721 181,353 177,054
Net income attributable to GoDaddy Inc. per share of Class A common stock—basic:                      
Net income (loss) from continuing operations per share, basic (in USD per share)                 $ 0.79 $ 0.50 $ 1.17
Net income (loss) from discontinued operations per share, basic (in USD per share)                 0 0 0.08
Net income attributable to GoDaddy Inc. (in USD per share) $ 0.35 $ 0.44 $ (0.07) $ 0.08 $ 0.25 $ 0.08 $ 0.12 $ 0.02 0.79 0.50 1.25
Earnings Per Share, Diluted [Abstract]                      
Net income (loss) from continuing operations per share, diluted (in USD per share)                 0.76 0.45 0.71
Net income (loss) from continuing operations per share, diluted (in USD per share)                 0 0 0.08
Net income attributable to GoDaddy Inc. (in USD per share) $ 0.34 $ 0.42 $ (0.07) $ 0.07 $ 0.24 $ 0.08 $ 0.11 $ 0.02 $ 0.76 $ 0.45 $ 0.79
Class B Common Stock                      
Denominator:                      
Effect of dilutive securities (in shares)                 2,318 16,534 57,999
Stock options                      
Denominator:                      
Effect of dilutive securities (in shares)                 4,369 7,123 8,791
RSUs, PSUs and ESPP shares                      
Denominator:                      
Effect of dilutive securities (in shares)                 1,603 2,462 1,485
Pro Forma                      
Numerator:                      
Less: net income attributable to non-controlling interests                 $ 1.4 $ 4.9 $ 3.4
Net income attributable to GoDaddy Inc.                 $ 137.0 $ 77.1 $ 136.4
v3.19.3.a.u2
Income Per Share - Schedule of Anti-dilutive Securities Excluded From Diluted EPS (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Stock options, RSUs and PSUs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from diluted loss per unit calculation (in shares) 1,784 982 1,700
v3.19.3.a.u2
Income Per Share - Narrative (Details)
Dec. 31, 2019
shares
Class B Common Stock  
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]  
Conversion feature of Class B common stock, number of Class A common shares 1
v3.19.3.a.u2
Income Per Share - Schedule of Shares Outstanding (Details) - shares
shares in Thousands
Dec. 31, 2019
Dec. 31, 2018
Class A Common Stock    
Class of Stock [Line Items]    
Common stock outstanding (in shares) 172,867 168,549
Class B Common Stock    
Class of Stock [Line Items]    
Common stock outstanding (in shares) 1,490 6,254
v3.19.3.a.u2
Geographic Information (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenue $ 780.4 $ 760.5 $ 737.2 $ 710.0 $ 695.8 $ 679.5 $ 651.6 $ 633.2 $ 2,988.1 $ 2,660.1 $ 2,231.9
Property and equipment, net 258.6       299.0       258.6 299.0  
U.S.                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenue                 1,979.6 1,723.9 1,504.5
Property and equipment, net 200.4       231.0       200.4 231.0  
International                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenue                 1,008.5 936.2 $ 727.4
Property and equipment, net $ 58.2       $ 68.0       $ 58.2 $ 68.0  
v3.19.3.a.u2
Related Party Transactions (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Related Party Transaction [Line Items]    
Long-term debt $ 2,432.3 $ 2,457.3
Term Loan | Secured Debt    
Related Party Transaction [Line Items]    
Long-term debt 1,832.3 2,457.3
Term Loan | Secured Debt | Affiliates of KKR | Affiliated Entity | Loans Held by Related Parties    
Related Party Transaction [Line Items]    
Long-term debt $ 7.8 $ 10.4
v3.19.3.a.u2
Accumulated Other Comprehensive Loss - OCI Activity Accumulated in Equity (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Equity at beginning of period $ 824.5 $ 546.5 $ 714.2
Equity at end of period 782.1 824.5 546.5
Foreign Currency Translation Adjustments      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Equity at beginning of period (92.3) (86.8)  
Other comprehensive income (loss) before reclassifications 37.7 (5.5)  
Amounts reclassified from AOCI 0.0 0.0 (46.9)
Other comprehensive income (loss) 37.7 (5.5)  
Equity at end of period (54.6) (92.3) (86.8)
Net Unrealized Gains (Losses) on Cash Flow Hedges      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Equity at beginning of period (22.4) (45.5)  
Other comprehensive income (loss) before reclassifications (60.7) (62.5)  
Amounts reclassified from AOCI 58.8 85.6  
Other comprehensive income (loss) (1.9) 23.1  
Equity at end of period (24.3) (22.4) (45.5)
AOCI Including Portion Attributable to Noncontrolling Interest      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Equity at beginning of period (114.7) (132.3)  
Other comprehensive income (loss) before reclassifications (23.0) (68.0)  
Amounts reclassified from AOCI 58.8 85.6  
Other comprehensive income (loss) 35.8 17.6  
Equity at end of period (78.9) (114.7) (132.3)
AOCI Attributable to Noncontrolling Interest      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Equity at beginning of period (42.6)    
Equity at end of period (0.7) (42.6)  
AOCI Attributable to Parent      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Equity at beginning of period (72.1) (85.7) 2.7
Equity at end of period $ (78.2) $ (72.1) $ (85.7)
v3.19.3.a.u2
Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Foreign Currency Translation Adjustments      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Amounts reclassified from AOCI $ 0.0 $ 0.0 $ 46.9
v3.19.3.a.u2
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Class of Stock [Line Items]                      
Total revenue $ 780.4 $ 760.5 $ 737.2 $ 710.0 $ 695.8 $ 679.5 $ 651.6 $ 633.2 $ 2,988.1 $ 2,660.1 $ 2,231.9
Operating income 73.5 91.4 18.9 18.8 41.8 37.5 43.5 26.8 202.6 149.6 66.9
Net income 61.1 76.8 (12.7) 13.2 43.5 14.1 20.2 4.2 138.4 82.0 139.8
Net income (loss) attributable to GoDaddy Inc. $ 60.5 $ 76.2 $ (12.6) $ 12.9 $ 42.5 $ 13.2 $ 18.1 $ 3.3 $ 137.0 $ 77.1 $ 136.4
Class A Common Stock                      
Class of Stock [Line Items]                      
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock - basic (in USD per share) $ 0.35 $ 0.44 $ (0.07) $ 0.08 $ 0.25 $ 0.08 $ 0.12 $ 0.02 $ 0.79 $ 0.50 $ 1.25
Net income (loss) attributable to GoDaddy Inc. per share of Class A common stock - diluted (in USD per share) $ 0.34 $ 0.42 $ (0.07) $ 0.07 $ 0.24 $ 0.08 $ 0.11 $ 0.02 $ 0.76 $ 0.45 $ 0.79
v3.19.3.a.u2
Subsequent Events (Details) - Subsequent Event - February 2020 Acquisition
$ in Millions
 1 Months Ended
Feb. 20, 2020
USD ($)
numberOfAcquisitions
Subsequent Event [Line Items]  
Number of acquisitions | numberOfAcquisitions 2
Total purchase consideration $ 196.9
Cash consideration 149.1
Consideration payable $ 47.8
v3.19.3.a.u2
Label Element Value
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption $ 3,300,000
Retained Earnings [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption $ 3,300,000