0001086222-22-000058 | 10-K | XBRL Viewer

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income	$ 651,642	$ 557,054	$ 478,035
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	550,632	478,389	440,674
Stock-based compensation	202,759	197,411	187,140
(Benefit) provision for deferred income taxes	(47,794)	(33,821)	933
Amortization of debt discount and issuance costs	66,025	62,823	45,857
Other non-cash reconciling items, net	21,823	23,027	8,528
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable	(24,096)	(90,381)	(64,471)
Prepaid expenses and other current assets	4,034	(25,395)	11,689
Accounts payable and accrued expenses	31,523	39,211	8,769
Deferred revenue	(2,865)	(1,318)	(13,547)
Other current liabilities	(20,404)	18,101	(17,230)
Other non-current assets and liabilities	(28,716)	(10,101)	(28,073)
Net cash provided by operating activities	1,404,563	1,215,000	1,058,304
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired	(598,825)	(127,999)	(165,329)
Cash paid for asset acquisition	0	(36,376)	0
Cash paid for equity method investment	0	0	(36,008)
Purchases of property and equipment	(328,969)	(514,313)	(359,667)
Capitalization of internal-use software development costs	(216,261)	(217,559)	(202,410)
Purchases of short-and long-term marketable securities	(932,604)	(1,782,849)	(1,990,148)
Proceeds from sales of short-and long-term marketable securities	442,133	30,350	856
Proceeds from maturities and redemptions of short-and long-term marketable securities	991,949	1,597,651	1,084,373
Other, net	(4,322)	8,121	399
Net cash used in investing activities	(646,899)	(1,042,974)	(1,667,934)
Cash flows from financing activities:
Proceeds from the issuance of convertible senior notes	0	0	1,135,629
Proceeds from the issuance of warrants	0	0	185,150
Purchase of note hedge related to convertible senior notes	0	0	(312,225)
Repayment of convertible senior notes	0	0	(690,000)
Proceeds related to the issuance of common stock under stock plans	59,632	59,775	57,112
Employee taxes paid related to net share settlement of stock-based awards	(99,112)	(89,828)	(75,266)
Repurchases of common stock	(522,255)	(193,588)	(334,519)
Other, net	(268)	0	(1,558)
Net cash used in financing activities	(562,003)	(223,641)	(35,677)
Effects of exchange rate changes on cash, cash equivalents and restricted cash	(11,376)	10,935	2,466
Net increase (decrease) in cash, cash equivalents and restricted cash	184,285	(40,680)	(642,841)
Cash, cash equivalents and restricted cash at beginning of year	353,466	394,146	1,036,987
Cash, cash equivalents and restricted cash at end of year	537,751	353,466	394,146
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds received in the years ended December 31, 2021, 2020 and 2019 of $14,808, $17,491 and $3,731, respectively	100,533	79,163	73,898
Cash paid for interest expense	5,750	5,954	1,438
Cash paid for operating lease liabilities	224,085	201,856	153,818
Non-cash activities:
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	218,753	200,735	529,376
Purchases of property and equipment and capitalization of internal-use software development costs included in accounts payable and accrued expenses	63,309	75,666	88,238
Capitalization of stock-based compensation	36,545	38,333	35,905
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	536,725	352,917	393,745
Restricted cash	1,026	549	401
Cash, cash equivalents and restricted cash	$ 537,751	$ 353,466	$ 394,146

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,794,576	$ 3,520,090
Accumulated depreciation and amortization	(2,260,247)	(2,041,818)
Property and equipment, net	1,534,329	1,478,272
Computer and networking equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,981,775	1,847,717
Purchased software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	89,347	95,662
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	71,381	71,119
Office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	42,616	40,235
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	227,358	230,423
Internal-use software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,382,099	$ 1,234,934
Minimum \| Computer and networking equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	3 years
Minimum \| Purchased software
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	3 years
Minimum \| Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	1 year
Minimum \| Office equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	3 years
Minimum \| Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	1 year
Minimum \| Internal-use software
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	2 years
Maximum \| Computer and networking equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	7 years
Maximum \| Purchased software
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	10 years
Maximum \| Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	7 years
Maximum \| Office equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	5 years
Maximum \| Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	15 years
Maximum \| Internal-use software
Property, Plant and Equipment [Line Items]
Estimated Useful Life (in years)	7 years

Debt - Narrative (Details) $ / shares in Units, shares in Millions	1 Months Ended		12 Months Ended
	Aug. 31, 2019 USD ($) d $ / shares shares	May 31, 2018 USD ($) d $ / shares shares	Dec. 31, 2021 USD ($) $ / shares	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Feb. 28, 2014 USD ($)
Debt Instrument [Line Items]
Closing stock price (in dollars per share) \| $ / shares			$ 117.04
Repurchases of common stock			$ 522,255,000	$ 193,588,000	$ 334,519,000
Payments for note hedge transactions			0	0	312,225,000
Proceeds from sale of warrants			0	0	$ 185,150,000
Convertible Debt \| 2027 Notes
Debt Instrument [Line Items]
Debt issued	$ 1,150,000,000		$ 1,150,000,000	1,150,000,000
Interest rate	0.375%		0.375%
Threshold trading days exceeding price \| d	20
Threshold consecutive trading days exceeding price \| d	30
Threshold greater than percentage of stock price trigger	130.00%
Threshold trading days not exceeding price	5 days
Threshold consecutive trading days not exceeding price	5 days
Threshold less than percentage of stock price trigger	98.00%
Conversion rate	0.0086073
Conversion price (in dollars per share) \| $ / shares	$ 116.18
Potential conversion shares of convertible debt (in shares) \| shares	9.9
Fair value of convertible senior notes			$ 1,359,300,000	1,277,800,000
Closing stock price (in dollars per share) \| $ / shares			$ 117.04
Repurchases of common stock	$ 100,000,000
Payments for purchase of convertible note hedge and warrant transactions	127,100,000
Payments for note hedge transactions	$ 312,200,000
Warrants outstanding (in shares) \| shares	9.9
Warrant strike price (in dollars per share) \| $ / shares	$ 178.74
Proceeds from sale of warrants	$ 185,200,000
Effective interest rate			3.10%
Convertible Debt \| 2025 Notes
Debt Instrument [Line Items]
Debt issued		$ 1,150,000,000	$ 1,150,000,000	1,150,000,000
Interest rate		0.125%	0.125%
Threshold trading days exceeding price \| d		20
Threshold consecutive trading days exceeding price \| d		30
Threshold greater than percentage of stock price trigger		130.00%
Threshold trading days not exceeding price		5 days
Threshold consecutive trading days not exceeding price		5 days
Threshold less than percentage of stock price trigger		98.00%
Conversion rate		0.010515
Conversion price (in dollars per share) \| $ / shares		$ 95.10
Potential conversion shares of convertible debt (in shares) \| shares		12.1
Fair value of convertible senior notes			$ 1,510,400,000	$ 1,422,800,000
Closing stock price (in dollars per share) \| $ / shares			$ 117.04
Repurchases of common stock		$ 46,200,000
Payments for purchase of convertible note hedge and warrant transactions		141,800,000
Payments for note hedge transactions		$ 261,700,000
Warrants outstanding (in shares) \| shares		12.1
Warrant strike price (in dollars per share) \| $ / shares		$ 149.18
Proceeds from sale of warrants		$ 119,900,000
Effective interest rate			4.26%
Convertible Debt \| 2019 Notes
Debt Instrument [Line Items]
Debt issued						$ 690,000,000
Effective interest rate			3.20%

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Tax expense on change in unrealized gain on investments	$ (3,412)	$ 2,720	$ 666

Debt - Revolving Credit Facility (Details) - Credit Agreement - USD ($)	1 Months Ended	12 Months Ended
	May 31, 2018	Dec. 31, 2021
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 500,000,000
Debt term	5 years
Maximum borrowing capacity under specific conditions	$ 1,000,000,000
Outstanding borrowings		$ 0
Minimum
Debt Instrument [Line Items]
Commitment fee		0.075%
Maximum
Debt Instrument [Line Items]
Commitment fee		0.15%
Base Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate		0.00%
Base Rate \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate		0.25%
LIBOR \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate		0.875%
LIBOR \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate		1.25%

Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

The Company sells its services through a sales force located both domestically and abroad. Revenue derived from operations outside of the U.S. is determined based on the country in which the sale originated. Other than the U.S., no single country accounted for 10% or more of the Company’s total revenue for any reported period. The following table summarizes revenue by geography included in the Company’s consolidated statements of income for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
U.S.	$	1,837,508	$	1,777,435	$	1,694,211
International	1,623,715		1,420,714		1,199,406
Total revenue	$	3,461,223	$	3,198,149	$	2,893,617

Leveraging its Intelligent Edge Platform and a global sales organization, the Company offers solutions that are developed and maintained through two groups: the Security Technology Group and the Edge Technology Group. The Security Technology Group includes solutions that are designed to protect business online by keeping infrastructure, websites, applications and users safe, while the Edge Technology Group includes solutions that are designed to enable business online, including media delivery, web performance and edge computing solutions. The following table summarizes revenue by product group included in the Company’s consolidated statements of income for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
Security Technology Group	$	1,334,836	$	1,061,622	$	848,733
Edge Technology Group	2,126,387		2,136,527		2,044,884
Total revenue	$	3,461,223	$	3,198,149	$	2,893,617

Most security and content delivery services represent obligations that are satisfied over time as the customer simultaneously receives and consumes the services provided by the Company. Accordingly, the majority of the Company's revenue is recognized over time, generally ratably over the term of the arrangement due to consistent monthly traffic commitments that expire each period. A small percentage of the Company's contracts are satisfied at a point in time, such as one-time professional services contracts, integration services and most license sales where the primary obligation is delivery of the license at the start of the term. In these cases, revenue is recognized at a point in time of delivery or satisfaction of the performance obligation.

During the years ended December 31, 2021, 2020 and 2019, the Company recognized $78.8 million, $69.9 million and $64.1 million of revenue that was included in deferred revenue as of December 31, 2020, 2019 and 2018 respectively.

As of December 31, 2021, the aggregate amount of remaining performance obligations from contracts with customers was $3.1 billion. The Company expects to recognize approximately 70% of its remaining performance obligations as revenue over the next 12 months, with the remaining recognized thereafter. Remaining performance obligations represent the amount of the transaction price under contracts with customers that are attributable to performance obligations that are unsatisfied or partially satisfied at the reporting date. This consists of future committed revenue for monthly, quarterly or annual periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced in prior periods for which the related performance obligations have not been satisfied. It excludes estimates of variable consideration such as usage-based contracts with no committed contract as well as anticipated renewed contracts. Revenue recognized during the years ended December 31, 2021, 2020 and 2019, related to performance obligations satisfied in previous periods was not material.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

Segment and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Long-lived Assets by Geographic Areas

The following table summarizes net property and equipment, excluding internal-use software and operating lease right-of-use assets, located in the U.S. and foreign locations, as of December 31, 2021 and 2020 (in thousands):


	December 31, 2021		December 31, 2020
Property and equipment, net, excluding internal-use software, located in the U.S.	$	568,040	$	572,391
Property and equipment, net, excluding internal-use software, located in foreign locations	510,695		487,174
Operating lease right-of-use assets located in the U.S.	625,424		611,959
Operating lease right-of-use assets located in foreign locations	190,330		181,986

Revenue from External Customers by Geographic Areas

The following table summarizes revenue derived from operations outside of the U.S. for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
Revenue derived from operations outside of the U.S.	$	1,623,715	$	1,420,714	$	1,199,406

Goodwill and Acquired Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 664,826	$ 538,899
Accumulated Amortization	(351,601)	(304,175)
Net Carrying Amount	313,225	234,724
Completed technologies
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	257,857	172,346
Accumulated Amortization	(128,715)	(111,435)
Net Carrying Amount	129,142	60,911
Customer-related intangible assets
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	398,182	358,032
Accumulated Amortization	(216,192)	(186,733)
Net Carrying Amount	181,990	171,299
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	258	373
Accumulated Amortization	(107)	(77)
Net Carrying Amount	151	296
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	8,039	7,658
Accumulated Amortization	(6,097)	(5,440)
Net Carrying Amount	1,942	2,218
Acquired license rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	490	490
Accumulated Amortization	(490)	(490)
Net Carrying Amount	$ 0	$ 0

Income Taxes - Schedule of Difference Between Effective and Statutory (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
U.S. federal income tax rate	21.00%	21.00%	21.00%
State taxes	0.70%	1.00%	1.00%
Stock-based compensation	0.10%	(0.60%)	0.30%
U.S. federal, state and foreign research and development credits	(3.70%)	(4.40%)	(6.00%)
Foreign earnings	(7.30%)	(7.70%)	(6.10%)
Nondeductible (nontaxable) foreign items	0.00%	(0.40%)	0.70%
Release of uncertain tax position reserve	(1.00%)	(0.90%)	(5.90%)
Intercompany sale of intellectual property	0.00%	0.20%	1.90%
Valuation allowance	0.60%	1.10%	4.20%
Other	(1.80%)	(1.80%)	(1.10%)
Effective income tax rate	8.60%	7.50%	10.00%

Stock-Based Compensation - Schedule of Assumptions Used (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 months	6 months	6 months
Risk-free interest rate	0.10%	0.70%	2.30%
Expected volatility	32.20%	30.40%	29.60%
Dividend yield	0.00%	0.00%	0.00%
Market-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	3 years	3 years	3 years
Risk-free interest rate	0.30%	0.70%	2.50%
Expected volatility	32.70%	28.20%	32.80%
Average volatility of peer-company share price	39.60%	28.90%	27.00%

Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Aug. 31, 2019	May 31, 2018
Debt Instrument [Line Items]
Amortization of debt discount and issuance costs	$ 69,697	$ 67,153	$ 52,059
Capitalization of interest expense	(3,672)	(4,330)	(6,201)
Total interest expense	72,332	69,120	49,364
Credit Agreement
Debt Instrument [Line Items]
Interest on debt instruments	$ 557	548	513
Convertible Debt \| 2025 Notes
Debt Instrument [Line Items]
Interest rate	0.125%				0.125%
Effective interest rate	4.26%
Interest on debt instruments	$ 1,437	1,437	1,436
Convertible Debt \| 2027 Notes
Debt Instrument [Line Items]
Interest rate	0.375%			0.375%
Effective interest rate	3.10%
Interest on debt instruments	$ 4,313	$ 4,312	$ 1,557

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

The components of income before provision for income taxes were as follows for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
U.S.	$	70,300	$	45,074	$	24,253
Foreign	657,921		571,008		508,228
Income before provision for income taxes	$	728,221	$	616,082	$	532,481

The provision for income taxes consisted of the following for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
Current tax (benefit) provision:
Federal	$	11,824	$	(1,765)	$	(22,704)
State	8,515		5,346		3,835
Foreign	90,026		76,162		71,286
Deferred tax (benefit) provision:
Federal	(33,366)		(19,845)		(13,987)
State	(14,611)		(14,509)		(12,212)
Foreign	(4,358)		(6,023)		4,968
Change in valuation allowance	4,541		6,556		22,164
Total	$	62,571	$	45,922	$	53,350

The Company’s effective tax rate differed from the U.S. federal statutory tax rate as follows for the years ended December 31, 2021, 2020 and 2019:


	2021		2020		2019
U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
State taxes	0.7		1.0		1.0
Stock-based compensation	0.1		(0.6)		0.3
U.S. federal, state and foreign research and development credits	(3.7)		(4.4)		(6.0)
Foreign earnings	(7.3)		(7.7)		(6.1)

Nondeductible (nontaxable) foreign items	—		(0.4)		0.7



Release of uncertain tax position reserve	(1.0)		(0.9)		(5.9)

Intercompany sale of intellectual property	—		0.2		1.9
Valuation allowance	0.6		1.1		4.2
Other	(1.8)		(1.8)		(1.1)
	8.6	%	7.5	%	10.0	%

The components of the net deferred tax assets and liabilities and the related valuation allowance as of December 31, 2021 and 2020 were as follows (in thousands):


	2021		2020
Accrued bonus	$	26,261	$	25,480
Deferred revenue	6,683		11,146

Operating lease liability	133,298		141,212
Stock-based compensation	21,507		23,629
NOLs	53,088		25,255

Tax credit carryforwards	88,710		110,254

Convertible senior notes interest	18,552		20,953
Depreciation and amortization	85,438		—
Other	15,679		11,531
Deferred tax assets	449,216		369,460
Depreciation and amortization	—		(6,974)

Acquired intangible assets	(86,567)		(59,128)

Operating lease right-of-use asset	(124,833)		(127,524)
Deferred commissions	(13,468)		(14,952)
Internal-use software development costs capitalized	(59,837)		(58,820)

Deferred tax liabilities	(284,705)		(267,398)
Valuation allowance	(37,143)		(32,602)
Net deferred tax assets	$	127,368	$	69,460

Valuation allowances will be recognized on deferred tax assets if it is more-likely-than-not that some or all of the deferred tax assets will not be utilized. In measuring deferred tax assets, the Company considers all available evidence, both positive and negative, to determine whether a valuation allowance is needed. As of December 31, 2021, the Company recorded a $37.1 million valuation allowance against deferred tax assets related to tax credits and state and foreign NOLs in which it is more-likely-than-not that such attributes will expire prior to utilization. The increase in the valuation allowance during 2021 was $4.5 million.

The table below summarizes the Company's NOL and tax credit carryforwards in U.S. federal, state and foreign jurisdictions as of December 31, 2021 and 2020 (in thousands, except years):


	2021		2020		Expirations at Various Dates Through:
NOL carryforwards:
Federal	$	44,000	$	59,200	2037
State	15,500		24,800		2041
Foreign	180,100		40,800		2035
Federal and state research and development tax credit and other credit carryforwards	113,500		132,800		2037

The Company's U.S. federal and state NOL carryforwards relate to acquisitions completed in 2021, 2019, 2017 and 2012. Foreign NOL carryforwards relate to an acquisition completed in 2021 and losses due to the difference in local tax laws.

As of December 31, 2021, accumulated earnings outside the U.S. totaled $1.2 billion, the majority of which have been taxed due to the one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings and the tax on global intangible low taxed income required by the U.S. Tax Cuts and Jobs Act ("TCJA"). No provision for U.S. income and foreign withholding taxes has been provided for any remaining undistributed foreign earnings not subject to tax under the TCJA, or any additional basis differences inherent in these entities, as these amounts continue to be indefinitely reinvested. Determination of the amount of the unrecognized deferred tax liability on outside basis differences is not practicable because of the complexity of laws and regulations, the varying tax treatment of alternative repatriation scenarios and the variation due to multiple potential assumptions relating to the timing of any future repatriation.

The following is a roll forward of the Company’s unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
Balance at beginning of year	$	24,105	$	27,359	$	64,892
Gross increases – tax positions of prior periods	4,293		2,539		74
Gross increases – current period tax positions	3,607		1,946		2,006
Gross decreases – tax positions of prior periods	(816)		(3,540)		(5,201)
Gross decreases – lapse of applicable statute of limitations	(8,626)		(4,199)		(28,672)
Gross decreases – settlements	—		—		(5,740)
Balance at end of year	$	22,563	$	24,105	$	27,359

As of December 31, 2021, 2020 and 2019, the Company had $23.1 million, $29.5 million and $32.6 million of unrecognized tax benefits, respectively. Total interest and penalties for unrecognized tax benefits includes $7.2 million, $7.7 million and $7.8 million as of December 31, 2021, 2020 and 2019, respectively. Interest and penalties related to unrecognized tax benefits are recorded in the provision for income taxes and were $0.5 million, $1.2 million and $1.1 million for the years ended December 31, 2021, 2020 and 2019, respectively. The amount of unrecognized tax benefits that, if recognized, would impact the effective income tax rate is $23.1 million.

As of December 31, 2021, it is reasonably possible that $4.8 million of unrecognized tax benefits may be recognized within the next 12 months due to the expiration of local statutes of limitations. Certain U.S. state and foreign income tax returns from 2011 through 2020 are currently under audit. The Company has reserved for those positions that are not more-likely-than-not to be sustained.

The Company is also involved in litigation related to certain adverse audit determinations. In the second quarter of 2018, the Company filed an appeal with the Massachusetts Appellate Tax Board contesting the adverse audit findings related to certain tax benefits and exemptions. The appeal hearing was held in late 2019. In July 2020, the Massachusetts Appellate Tax Board ruled in the Company's favor; however the Massachusetts Department of Revenue has appealed the decision in January 2022. The Company has determined that it is more-likely-than-not that it will prevail, and no reserve has been recorded related to these controversies. However, over the next 12 months, the Company's current assumptions and positions could change based on appeal decisions and other events impacting its analysis. Such events, if resolved unfavorably, could significantly impact the Company’s effective income tax rate and results of operations. The Company has estimated that an adverse ruling related to its Massachusetts controversy could result in a gross income tax charge of approximately $49.0 million, which could be partially offset by certain state tax credits of $32.0 million which are not currently benefited as a result of the Company's valuation allowance assessment.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2021

Accounts Payable and Accrued Liabilities, Current [Abstract]

Schedule of Accrued Expenses

Accrued expenses consisted of the following as of December 31, 2021 and 2020 (in thousands):


	December 31, 2021		December 31, 2020
Payroll and other related benefits	$	222,535	$	218,588
Income tax payable	72,946		50,812
Bandwidth and co-location	72,904		67,170
Property, use and other taxes	33,883		35,390
Professional service fees	2,929		2,245
Other accrued expenses	6,393		6,263
Total	$	411,590	$	380,468

Prepaid Expenses and Other Current Assets - Incremental Customer Contract Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Amortization expense related to deferred costs	$ 58,433	$ 61,682	$ 44,266
Incremental costs capitalized	$ 56,509	$ 67,058	$ 54,514

Restructuring - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Restructuring Cost and Reserve [Line Items]
Restructuring charge (benefit)	$ 10,737	$ 37,286	$ 17,153
2020 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charge (benefit)	3,800
2019 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charge (benefit)	7,900	23,600
Restructuring cost incurred to date	31,500
2018 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charge (benefit)	(2,800)	$ 13,200	$ 10,200
Restructuring cost incurred to date	$ 20,600

Revenue from Contracts with Customers - Performance Obligation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue recognized	$ 78.8	$ 69.9	$ 64.1
Remaining performance obligation	$ 3,100.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations, percentage	70.00%
Remaining performance obligation, expected timing	12 months

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 31, 2021
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity Stock Repurchase Program In November 2018, the board of directors authorized a $1.1 billion repurchase program through December 2021. In October 2021, the board of directors authorized a new $1.8 billion share repurchase program, effective January 1, 2022 through December 31, 2024. The Company's goals for the share repurchase programs are to offset the dilution created by its employee equity compensation programs over time and provide the flexibility to return capital to shareholders as business and market conditions warrant, while still preserving its ability to pursue other strategic opportunities. During the years ended December 31, 2021, 2020 and 2019, the Company repurchased 4.7 million, 2.0 million and 4.0 million shares, respectively, of its common stock for $522.3 million, $193.6 million and $334.5 million, respectively, pursuant to the repurchase programs described above. As of December 31, 2021, the Company had $49.6 million which expired under the repurchase program effective through December 31, 2021. The board of directors authorized the retirement of all the outstanding shares of its treasury stock as of each of December 31, 2021, 2020 and 2019. The retired shares were returned to the number of authorized but unissued shares of the Company's common stock, and the retirement was recorded to additional paid-in capital.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Goodwill and Acquired Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquired Intangible Assets

Acquired intangible assets that are subject to amortization consisted of the following as of December 31, 2021 and 2020 (in thousands):


	December 31, 2021						December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Completed technologies	$	257,857	$	(128,715)	$	129,142	$	172,346	$	(111,435)	$	60,911
Customer-related intangible assets	398,182		(216,192)		181,990		358,032		(186,733)		171,299
Non-compete agreements	258		(107)		151		373		(77)		296
Trademarks and trade names	8,039		(6,097)		1,942		7,658		(5,440)		2,218
Acquired license rights	490		(490)		—		490		(490)		—
Total	$	664,826	$	(351,601)	$	313,225	$	538,899	$	(304,175)	$	234,724

The following were the identified intangible assets acquired and their respective weighted average useful lives (in thousands, except years):


	Gross Carrying Amount		Weighted Average Useful Life (in years)
Completed technologies	$	79,000	15.0
Customer-related intangible assets	44,200		14.0
Trademarks	400		1.9

Total	$	123,600

The following were the identified intangible assets acquired and their respective weighted average useful lives (in thousands, except years):


	Gross Carrying Amount		Weighted Average Useful Life (in years)
Completed technologies	$	17,300	10.1
Customer-related intangible assets	40,400		11.1
Trademarks	100		0.9
Non-compete agreements	270		2.9
Total	$	58,070

The following were the identified intangible assets acquired and their respective weighted average useful lives (in thousands, except years):


	Gross Carrying Amount		Weighted Average Useful Life (in years)
Completed technologies	$	9,000	7.9
Customer-related intangible assets	17,700		13.9
Trademarks	200		1.9
Non-compete agreements	30		1.9
Total	$	26,930

Schedule of the Changes in the Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 were as follows (in thousands):


	2021		2020
Beginning balance	$	1,674,371	$	1,600,265

Acquisition of Guardicore Ltd.	479,110		—
Acquisition of Inverse, Inc.	10,741		—
Acquisition of Asavie Technologies Limited	—		70,200
Measurement period adjustments related to acquisitions completed in prior years	(267)		(1,056)
Foreign currency translation	(7,701)		4,962
Ending balance	$	2,156,254	$	1,674,371

Accounts Receivable (Tables)

12 Months Ended

Dec. 31, 2021

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Schedule of Accounts Receivable

Net accounts receivable consisted of the following as of December 31, 2021 and 2020 (in thousands):


	December 31, 2021		December 31, 2020
Trade accounts receivable	$	501,959	$	473,474
Unbilled accounts receivable	175,364		188,400
Gross accounts receivable	677,323		661,874
Allowance for current expected credit losses and other reserves	(1,397)		(1,822)
Accounts receivable, net	$	675,926	$	660,052

Schedule of Activity in the Accounts Receivable Reserves

A summary of activity in the accounts receivable allowance for current expected credit losses and other reserves for the years ended December 31, 2021, 2020 and 2019 is as follows (in thousands):


	2021		2020		2019
Beginning balance	$	1,822	$	1,880	$	1,534
Charges to income from operations	4,576		12,347		5,116
Collections from customers previously reserved and other	(5,001)		(12,405)		(4,770)
Ending balance	$	1,397	$	1,822	$	1,880

Stock-Based Compensation - Schedule of Deferred Stock Units Activity (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred Stock Units
Units
Outstanding (in shares)	114
Granted (in shares)	21
Vested and distributed (in shares)	(37)
Outstanding (in shares)	98	114
Weighted Average Grant Date Fair Value
Outstanding (in dollars per share)	$ 65.09
Granted (in dollars per share)	114.56	$ 100.58	$ 76.62
Vested and distributed (in dollars per share)	72.39
Outstanding (in dollars per share)	$ 72.96	$ 65.09
Restricted Stock Units (RSUs)
Units
Outstanding (in shares)	4,556
Granted (in shares)	3,299
Vested and distributed (in shares)	(2,851)
Forfeited (in shares)	(615)
Outstanding (in shares)	4,389	4,556
Weighted Average Grant Date Fair Value
Outstanding (in dollars per share)	$ 83.96
Granted (in dollars per share)	99.09	$ 92.42	$ 72.30
Vested and distributed (in dollars per share)	81.74
Forfeited (in dollars per share)	90.44
Outstanding (in dollars per share)	$ 95.75	$ 83.96

Debt - Schedule of Convertible Senior Notes (Details) - Convertible Debt - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Aug. 31, 2019	May 31, 2018
2027 Notes
Liability component:
Principal	$ 1,150,000,000	$ 1,150,000,000	$ 1,150,000,000
Less: debt discount and issuance costs, net of amortization	(169,030,000)	(196,359,000)
Net carrying amount	980,970,000	953,641,000
Equity component:	220,529,000	220,529,000
2025 Notes
Liability component:
Principal	1,150,000,000	1,150,000,000		$ 1,150,000,000
Less: debt discount and issuance costs, net of amortization	(154,803,000)	(196,934,000)
Net carrying amount	995,197,000	953,066,000
Equity component:	$ 285,225,000	$ 285,225,000

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Statement of Stockholders' Equity [Abstract]
Deferred Tax	$ 23,170
Issuance Costs	$ 2,880

Commitments and Contingencies - Purchase Commitments (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Bandwidth Commitments
Unrecorded Unconditional Purchase Obligation [Line Items]
2022	$ 102,144
2023	21,979
2024	2,100
2025	0
2026	0
Total	126,223
Purchase Order Commitments
Unrecorded Unconditional Purchase Obligation [Line Items]
2022	226,926
2023	58,972
2024	29,190
2025	230
2026	61
Total	$ 315,379

Stock-Based Compensation - Schedule of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 202,759	$ 197,411	$ 187,140
Provision for income taxes	(56,084)	(62,153)	(51,177)
Total stock-based compensation, net of taxes	146,675	135,258	135,963
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	27,143	24,829	22,479
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	65,950	48,855	49,685
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	46,342	65,257	62,150
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 63,324	$ 58,470	$ 52,826

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Stock Based Compensation Expense

The following table summarizes the components of total stock-based compensation expense included in the Company’s consolidated statements of income for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
Cost of revenue	$	27,143	$	24,829	$	22,479
Research and development	65,950		48,855		49,685
Sales and marketing	46,342		65,257		62,150
General and administrative	63,324		58,470		52,826
Total stock-based compensation	202,759		197,411		187,140
Provision for income taxes	(56,084)		(62,153)		(51,177)
Total stock-based compensation, net of taxes	$	146,675	$	135,258	$	135,963

Schedule of Assumptions Used

The grant-date fair values of awards granted under the 1999 ESPP during the years ended December 31, 2021, 2020 and 2019 were estimated using the Black-Scholes option pricing model with the following weighted-average assumptions:


	2021		2020		2019
Expected term (in years)	0.5		0.5		0.5
Risk-free interest rate	0.1	%	0.7	%	2.3	%
Expected volatility	32.2	%	30.4	%	29.6	%
Dividend yield	—	%	—	%	—	%

The grant-date fair values of the TSR-based RSUs granted during the years ended December 31, 2021, 2020 and 2019 were estimated using a Monte Carlo simulation model with the following assumptions:


	2021		2020		2019
Expected term (in years)	3.0		3.0		3.0
Risk-free interest rate	0.3	%	0.7	%	2.5	%
Akamai historical share price volatility	32.7	%	28.2	%	32.8	%
Average volatility of peer-company share price	39.6	%	28.9	%	27.0	%

Schedule of Summary of Stock Option Activity

The following table summarizes stock option activity during the year ended December 31, 2021:


	Shares (in thousands)	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2021	6	$	11.60
Exercised	(5)	3.94


Outstanding at December 31, 2021	1	$	41.08	1.55	$	100
Exercisable at December 31, 2021	1	$	41.08	1.55	$	100
Vested or expected to vest December 31, 2021	1	$	41.08	1.55	$	100

Schedule Of Deferred Stock Units Activity

The following table summarizes the DSU activity for the year ended December 31, 2021:


	Units (in thousands)	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2021	114	$	65.09
Granted	21	114.56
Vested and distributed	(37)	72.39
Outstanding at December 31, 2021	98	$	72.96

Schedule of Restricted Stock Units by Type

The following table summarizes the different types of restricted stock units ("RSUs") granted by the Company during the year ended December 31, 2021 (in thousands):


			December 31, 2021
RSUs with service-based vesting conditions			2,818
RSUs with market-based vesting conditions			85
RSUs with performance-based vesting conditions			396
Total			3,299

Schedule of Restricted Stock Units Activity

The following table summarizes the RSU activity for the year ended December 31, 2021:


	Units (in thousands)	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2021	4,556	$	83.96
Granted	3,299	99.09
Vested	(2,851)	81.74
Forfeited	(615)	90.44
Outstanding at December 31, 2021	4,389	$	95.75

Leases - Lease Maturity (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Real Estate Arrangements
Lessee, Lease, Description [Line Items]
2022	$ 80,070
2023	79,583
2024	73,506
2025	69,486
2026	65,314
Thereafter	416,280
Total lease payments	784,239
Less: imputed interest	139,550
Total lease liabilities	644,689
Co-location Arrangements
Lessee, Lease, Description [Line Items]
2022	97,494
2023	53,838
2024	35,532
2025	23,130
2026	14,834
Thereafter	20,640
Total lease payments	245,468
Less: imputed interest	7,387
Total lease liabilities	$ 238,081

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 651,642	$ 557,054	$ 478,035
Other comprehensive (loss) income:
Foreign currency translation adjustments	(38,514)	19,629	(1,020)
Change in unrealized (loss) gain on investments, net of income tax (benefit) provision of $(3,412), $2,720 and $666 for the years ended December 31, 2021, 2020 and 2019, respectively	(10,390)	5,314	4,788
Other comprehensive (loss) income	(48,904)	24,943	3,768
Comprehensive income	$ 602,738	$ 581,997	$ 481,803

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Marketable Securities

The following is a summary of available-for-sale marketable securities held as of December 31, 2021 and 2020 (in thousands):


			Gross Unrealized				Aggregate Fair Value		Classification on Balance Sheet
	Amortized Cost								Short-Term Marketable Securities		Long-Term Marketable Securities
As of December 31, 2021			Gains		Losses

Commercial paper	$	25,056	$	—	$	(24)	$	25,032	$	25,032	$	—
Corporate bonds	1,268,991		1,191		(4,275)		1,265,907		459,012		806,895

U.S. government agency obligations	316,728		3		(1,281)		315,450		56,530		258,920
	$	1,610,775	$	1,194	$	(5,580)	$	1,606,389	$	540,574	$	1,065,815

As of December 31, 2020

Commercial paper	$	46,931	$	13	$	(8)	$	46,936	$	46,936	$	—
Corporate bonds	1,628,462		9,482		(262)		1,637,682		607,403		1,030,279
Municipal securities	3,495		—		(6)		3,489		—		3,489
U.S. government agency obligations	435,653		329		(63)		435,919		89,951		345,968
	$	2,114,541	$	9,824	$	(339)	$	2,124,026	$	744,290	$	1,379,736

Fair Value Measurement Within Fair Value Hierarchy

The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets as of December 31, 2021 and 2020 (in thousands):


	Total Fair Value		Fair Value Measurements at Reporting Date Using
			Level 1		Level 2
As of December 31, 2021
Cash Equivalents and Marketable Securities:
Money market funds	$	109,313	$	109,313	$	—

Commercial paper	39,031		—		39,031
Corporate bonds	1,265,907		—		1,265,907

U.S. government agency obligations	315,450		—		315,450
Mutual funds	23,129		23,129		—
	$	1,752,830	$	132,442	$	1,620,388

As of December 31, 2020
Cash Equivalents and Marketable Securities:
Money market funds	$	74,417	$	74,417	$	—

Commercial paper	75,785		—		75,785
Corporate bonds	1,637,682		—		1,637,682
Municipal securities	3,489		—		3,489
U.S. government agency obligations	435,919		—		435,919
Mutual funds	19,932		19,932		—
	$	2,247,224	$	94,349	$	2,152,875

Schedule of Contractual Maturities of Marketable Securities and Other Investment Related Assets

Contractual maturities of the Company’s available-for-sale marketable securities held as of December 31, 2021 and 2020 were as follows (in thousands):


	December 31, 2021		December 31, 2020
Due in 1 year or less	$	540,574	$	744,290
Due after 1 year through 5 years	1,065,815		1,379,736
	$	1,606,389	$	2,124,026

Summary of Significant Accounting Policies - Equity Method Investments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Schedule of Equity Method Investments [Line Items]
Loss from equity method investment	$ 14,008	$ 13,106	$ 1,096
GO-NET
Schedule of Equity Method Investments [Line Items]
Ownership percentage	20.00%
Equity method investment	$ 7,500
Loss from equity method investment	14,000	13,100	1,100
Impairment loss		11,000
Revenue from related party	$ 10,100	$ 11,100	$ 11,600

- Definition

Amount of revenue, fees and commissions earned from transactions between (a) a parent company and its subsidiaries; (b) subsidiaries of a common parent; (c) an entity and trusts for the benefit of employees, for example, but not limited to, pension and profit-sharing trusts that are managed by or under the trusteeship of the entity's management; (d) an entity and its principal, owners, management, or members of their immediate families; and (e) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
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+ Details

Employee Benefit Plan	12 Months Ended
Employee Benefit Plan	Dec. 31, 2021
Compensation Related Costs [Abstract]
Employee Benefit Plan	Employee Benefit PlanThe Company has established a savings plan for its employees that is designed to be qualified under Section 401(k) of the Internal Revenue Code. Eligible employees are permitted to contribute to this plan through payroll deductions within statutory and plan limits. The Company contributed $17.7 million, $17.5 million and $16.6 million of cash to the savings plan for the years ended December 31, 2021, 2020 and 2019, respectively, under a matching program.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

As of December 31, 2021, the Company had long-term commitments for bandwidth usage with various networks and ISPs. Additionally, as of December 31, 2021, the Company had entered into purchase orders with various vendors. The minimum future commitments as of December 31, 2021 were as follows (in thousands):


	Bandwidth Commitments		Purchase Order Commitments
2022	$	102,144	$	226,926
2023	21,979		58,972
2024	2,100		29,190
2025	—		230
2026	—		61

Total	$	126,223	$	315,379

Legal Matters

The Company is party to various litigation matters that management considers routine and incidental to its business. Management does not expect the results of any of these routine actions to have a material effect on the Company’s business, results of operations, financial condition or cash flows.

In July 2016, as part of the resolution of a patent infringement lawsuit filed by the Company against Limelight Networks, Inc. (“Limelight”) in 2006, the Company entered into an agreement that requires Limelight to pay the Company $54.0 million in 12 equal installments over three years, beginning in August 2016. During the year ended December 31, 2019, the Company received $9.0 million under this agreement. Substantially all of the amounts received were recorded as a gain contingency in the year the cash was received, which reduced general and administrative expenses in the consolidated statements of income, with the remaining as interest income.

Indemnification

The Company enters into standard indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company agrees to indemnify, hold harmless and reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company's business partners, vendors or customers, in connection with its provision of its services. Generally, these obligations are limited to claims relating to infringement of a patent, copyright or other intellectual property right or the Company’s negligence, willful misconduct or violation of law. Subject to applicable statutes of limitation, the term of each of these indemnification agreements is generally perpetual from the time of execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company carries insurance that covers certain third-party claims relating to its services and activities and that could limit the Company’s exposure in that respect.

The Company has agreed to indemnify each of its officers and directors, or employees who serve as officers or directors of our subsidiaries at management's request, during his or her lifetime for certain events or occurrences that happen by reason of the fact that the officer or director is or was or has agreed to serve as an officer or director of the Company. The Company has director and officer insurance policies that may limit its exposure and may enable the Company to recover a portion of certain future amounts paid.

To date, the Company has not encountered material costs as a result of such indemnification obligations and has not accrued any related liabilities in its financial statements. In assessing whether to establish an accrual, the Company considers such factors as the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss.

Leases - Narrative (Details) $ in Millions	12 Months Ended
Leases - Narrative (Details) $ in Millions	Dec. 31, 2021 USD ($)
Lessee, Lease, Description [Line Items]
Operating lease not yet commenced	$ 67.2
Future sublease income	196.4
Outstanding letter of credit	$ 5.7
Minimum
Lessee, Lease, Description [Line Items]
Term of operating lease not yet commenced	1 year
Maximum
Lessee, Lease, Description [Line Items]
Term of operating lease not yet commenced	7 years

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Long-Term Commitments

The minimum future commitments as of December 31, 2021 were as follows (in thousands):


	Bandwidth Commitments		Purchase Order Commitments
2022	$	102,144	$	226,926
2023	21,979		58,972
2024	2,100		29,190
2025	—		230
2026	—		61

Total	$	126,223	$	315,379

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment consisted of the following as of December 31, 2021 and 2020 (in thousands, except years):


	December 31, 2021		December 31, 2020		Estimated Useful Life (in years)
Computer and networking equipment	$	1,981,775	$	1,847,717	3-7
Purchased software	89,347		95,662		3-10
Furniture and fixtures	71,381		71,119		1-7
Office equipment	42,616		40,235		3-5
Leasehold improvements	227,358		230,423		1-15
Internal-use software	1,382,099		1,234,934		2-7
Property and equipment, gross	3,794,576		3,520,090
Accumulated depreciation and amortization	(2,260,247)		(2,041,818)
Property and equipment, net	$	1,534,329	$	1,478,272

Commitments and Contingencies - Narrative (Details) - Patent Infringement Case Against Limelight - Settled Litigation $ in Millions	1 Months Ended	12 Months Ended
	Jul. 31, 2016 USD ($) installment	Dec. 31, 2019 USD ($)
Gain and Loss Contingencies [Line Items]
Settlement amount	$ 54.0
Number of installments in settlement \| installment	12
Settlement payment term	3 years
Proceeds from settlements		$ 9.0

Accrued Expenses

12 Months Ended

Dec. 31, 2021

Accounts Payable and Accrued Liabilities, Current [Abstract]

Accrued Expenses

Accrued expenses consisted of the following as of December 31, 2021 and 2020 (in thousands):


	December 31, 2021		December 31, 2020
Payroll and other related benefits	$	222,535	$	218,588
Income tax payable	72,946		50,812
Bandwidth and co-location	72,904		67,170
Property, use and other taxes	33,883		35,390
Professional service fees	2,929		2,245
Other accrued expenses	6,393		6,263
Total	$	411,590	$	380,468

Net Income per Share - Schedule of Components (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net income	$ 651,642	$ 557,054	$ 478,035
Denominator:
Shares used for basic net income per share (in shares)	162,665	162,490	162,706
Effect of dilutive securities:
Stock options (in shares)	21	31	68
RSUs and deferred stock units (in shares)	1,518	1,819	1,799
Convertible senior notes (in shares)	1,600	873	0
Warrants related to issuance of convertible senior notes (in shares)	0	0	0
Shares used for diluted net income per share (in shares)	165,804	165,213	164,573
Basic net income per share (in dollars per share)	$ 4.01	$ 3.43	$ 2.94
Diluted net income per share (in dollars per share)	$ 3.93	$ 3.37	$ 2.90

Fair Value Measurements - Schedule of Fair Value Measurement (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Cash Equivalents and Marketable Securities:
Available-for-sale securities	$ 1,606,389	$ 2,124,026
Total Fair Value	1,752,830	2,247,224
Money market funds
Cash Equivalents and Marketable Securities:
Cash equivalents	109,313	74,417
Commercial paper
Cash Equivalents and Marketable Securities:
Available-for-sale securities and cash equivalents	39,031	75,785
Available-for-sale securities	25,032	46,936
Corporate bonds
Cash Equivalents and Marketable Securities:
Available-for-sale securities	1,265,907	1,637,682
Municipal securities
Cash Equivalents and Marketable Securities:
Available-for-sale securities		3,489
U.S. government agency obligations
Cash Equivalents and Marketable Securities:
Available-for-sale securities and cash equivalents	315,450	435,919
Available-for-sale securities	315,450	435,919
Mutual funds
Cash Equivalents and Marketable Securities:
Available-for-sale securities	23,129	19,932
Level 1
Cash Equivalents and Marketable Securities:
Total Fair Value	132,442	94,349
Level 1 \| Money market funds
Cash Equivalents and Marketable Securities:
Cash equivalents	109,313	74,417
Level 1 \| Commercial paper
Cash Equivalents and Marketable Securities:
Available-for-sale securities and cash equivalents	0	0
Level 1 \| Corporate bonds
Cash Equivalents and Marketable Securities:
Available-for-sale securities	0	0
Level 1 \| Municipal securities
Cash Equivalents and Marketable Securities:
Available-for-sale securities		0
Level 1 \| U.S. government agency obligations
Cash Equivalents and Marketable Securities:
Available-for-sale securities and cash equivalents	0	0
Level 1 \| Mutual funds
Cash Equivalents and Marketable Securities:
Available-for-sale securities	23,129	19,932
Level 2
Cash Equivalents and Marketable Securities:
Total Fair Value	1,620,388	2,152,875
Level 2 \| Money market funds
Cash Equivalents and Marketable Securities:
Cash equivalents	0	0
Level 2 \| Commercial paper
Cash Equivalents and Marketable Securities:
Available-for-sale securities and cash equivalents	39,031	75,785
Level 2 \| Corporate bonds
Cash Equivalents and Marketable Securities:
Available-for-sale securities	1,265,907	1,637,682
Level 2 \| Municipal securities
Cash Equivalents and Marketable Securities:
Available-for-sale securities		3,489
Level 2 \| U.S. government agency obligations
Cash Equivalents and Marketable Securities:
Available-for-sale securities and cash equivalents	315,450	435,919
Level 2 \| Mutual funds
Cash Equivalents and Marketable Securities:
Available-for-sale securities	$ 0	$ 0

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Loss	Retained Earnings (Accumulated Deficit)	Retained Earnings (Accumulated Deficit) Cumulative Effect, Period of Adoption, Adjustment
Beginning balance (in shares) at Dec. 31, 2018			162,904,550
Beginning Balance at Dec. 31, 2018	$ 3,191,860	$ 851	$ 1,629	$ 3,670,033	$ 0	$ (48,912)	$ (430,890)	$ 851
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes (in shares)			2,251,840
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes	(72,328)		$ 22	(72,350)
Issuance of common stock under employee stock purchase plan (in shares)			879,648
Issuance of common stock under employee stock purchase plan	53,689		$ 9	53,680
Stock-based compensation	222,857			222,857
Equity component of convertible senior notes, net of deferred tax of $23,170 and issuance costs of $2,880	240,820			240,820
Issuance of warrants related to convertible senior notes	185,150			185,150
Purchase of note hedge related to convertible senior notes	(312,225)			(312,225)
Repurchases of common stock (in shares)			(4,035,195)
Repurchases of common stock	(334,519)				(334,519)
Treasury stock retirement	0		$ 40	334,479	334,519
Net income	478,035						478,035
Foreign currency translation adjustments	(1,020)					(1,020)
Change in unrealized gain (loss) on investments, net of tax	4,788					4,788
Ending balance (in shares) at Dec. 31, 2019			162,000,843
Ending Balance at Dec. 31, 2019	3,657,958		$ 1,620	3,653,486	0	(45,144)	47,996
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes (in shares)			1,949,963
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes	(89,102)		$ 20	(89,122)
Issuance of common stock under employee stock purchase plan (in shares)			723,600
Issuance of common stock under employee stock purchase plan	58,402		$ 7	58,395
Stock-based compensation	235,629			235,629
Repurchases of common stock (in shares)			(1,964,686)
Repurchases of common stock	(193,588)				(193,588)
Treasury stock retirement	0		$ 20	193,568	193,588
Net income	557,054						557,054
Foreign currency translation adjustments	19,629					19,629
Change in unrealized gain (loss) on investments, net of tax	5,314					5,314
Ending balance (in shares) at Dec. 31, 2020			162,709,720
Ending Balance at Dec. 31, 2020	4,251,296		$ 1,627	3,664,820	0	(20,201)	605,050
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes (in shares)			1,902,742
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes	(99,756)		$ 18	(99,774)
Issuance of common stock under employee stock purchase plan (in shares)			648,686
Issuance of common stock under employee stock purchase plan	59,714		$ 7	59,707
Stock-based compensation	238,277			238,277
Repurchases of common stock (in shares)			(4,749,037)
Repurchases of common stock	(522,255)				(522,255)
Treasury stock retirement	0		$ 47	522,208	522,255
Net income	651,642						651,642
Foreign currency translation adjustments	(38,514)					(38,514)
Change in unrealized gain (loss) on investments, net of tax	(10,390)					(10,390)
Ending balance (in shares) at Dec. 31, 2021			160,512,111
Ending Balance at Dec. 31, 2021	$ 4,530,014		$ 1,605	$ 3,340,822	$ 0	$ (69,105)	$ 1,256,692

Accumulated Other Comprehensive Loss

12 Months Ended

Dec. 31, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Loss

The following table summarizes the changes in accumulated other comprehensive loss, which is reported as a component of stockholders' equity, for the years ended December 31, 2021 and 2020 (in thousands):


	Foreign Currency Translation		Net Unrealized Gains (Losses) on Investments		Total
Balance as of January 1, 2020	$	(52,924)	$	7,780	$	(45,144)
Other comprehensive income	19,629		5,314		24,943
Balance as of December 31, 2020	(33,295)		13,094		(20,201)
Other comprehensive loss	(38,514)		(10,390)		(48,904)
Balance as of December 31, 2021	$	(71,809)	$	2,704	$	(69,105)

Amounts reclassified from accumulated other comprehensive loss to net income were insignificant for the years ended December 31, 2021 and 2020.

Summary of Significant Accounting Policies - Concentrations of Credit Risk (Details)	12 Months Ended
	Dec. 31, 2021
Customer Concentration Risk \| Accounts Receivable \| One Customer
Concentration Risk [Line Items]
Concentration risk percent (more than)	10.00%

Akamai Foundation	12 Months Ended
Akamai Foundation	Dec. 31, 2021
Related Party Transactions [Abstract]
Akamai Foundation	Akamai FoundationThe Akamai Foundation is a private non-profit organization founded by certain current and former employees of the Company in 2000 (the “Foundation”). The Company has the right to appoint the directors of the Foundation, but receives no economic benefit from the Foundation’s initiatives, therefore the Foundation is not consolidated. The Foundation's initiatives are to support youth education, with a focus on mathematics and science, as well as other charitable causes. In 2020, the Foundation expanded its initiatives to include supporting increased diversity in the technology industry. The Company contributed $20.0 million in that year in support of the Foundation's expanded initiatives. This expense is included in general and administrative expenses in the consolidated statements of income for the year ended December 31, 2020.

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Valuation allowance	$ 37,143	$ 32,602
Increase in valuation allowance	4,500
Foreign earnings repatriated	1,200,000
Unrecognized tax benefits including accrued interest and penalties	23,100	29,500	$ 32,600
Unrecognized tax benefits, income tax penalties and interest accrued	7,200	7,700	7,800
Income tax interest and penalties expense	500	$ 1,200	$ 1,100
Unrecognized tax benefits that, if recognized, would impact the effective income tax rate	23,100
Unrecognized tax benefits that may be recognized	4,800
Estimate of possible charge	49,000
Stat tax credits	$ 32,000

Income Taxes - Components of Income Tax Schedule (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
U.S.	$ 70,300	$ 45,074	$ 24,253
Foreign	657,921	571,008	508,228
Income before provision for income taxes	$ 728,221	$ 616,082	$ 532,481

Net Income per Share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of Components Used in Diluted and Basic Income Per Common Share

The following table sets forth the components used in the computation of basic and diluted net income per share for the years ended December 31, 2021, 2020 and 2019 (in thousands, except per share data):


	2021		2020		2019
Numerator:
Net income	$	651,642	$	557,054	$	478,035
Denominator:
Shares used for basic net income per share	162,665		162,490		162,706
Effect of dilutive securities:
Stock options	21		31		68
RSUs and DSUs	1,518		1,819		1,799
Convertible senior notes	1,600		873		—
Warrants related to issuance of convertible senior notes	—		—		—
Shares used for diluted net income per share	165,804		165,213		164,573
Basic net income per share	$	4.01	$	3.43	$	2.94
Diluted net income per share	$	3.93	$	3.37	$	2.90

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The number of potentially outstanding shares excluded from the computation of diluted net income per share for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021	2020	2019

Service-based RSUs	776	591	763
Market-and performance-based RSUs	1,199	1,409	1,349
Convertible senior notes	9,898	12,922	21,991
Warrants related to issuance of convertible senior notes	21,991	21,991	21,991
Total shares excluded from computation	33,864	36,913	46,094

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	$ 4,251,296	$ 3,657,958	$ 3,191,860
Other comprehensive loss	(48,904)	24,943	3,768
Ending Balance	4,530,014	4,251,296	3,657,958
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(20,201)	(45,144)	(48,912)
Ending Balance	(69,105)	(20,201)	(45,144)
Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(33,295)	(52,924)
Other comprehensive loss	(38,514)	19,629
Ending Balance	(71,809)	(33,295)	(52,924)
Net Unrealized Gains (Losses) on Investments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	13,094	7,780
Other comprehensive loss	(10,390)	5,314
Ending Balance	$ 2,704	$ 13,094	$ 7,780

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 55
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=122038336&loc=d3e74512-122707

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details

Accounts Receivable

12 Months Ended

Dec. 31, 2021

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Accounts Receivable

Net accounts receivable consisted of the following as of December 31, 2021 and 2020 (in thousands):


	December 31, 2021		December 31, 2020
Trade accounts receivable	$	501,959	$	473,474
Unbilled accounts receivable	175,364		188,400
Gross accounts receivable	677,323		661,874
Allowance for current expected credit losses and other reserves	(1,397)		(1,822)
Accounts receivable, net	$	675,926	$	660,052

A summary of activity in the accounts receivable allowance for current expected credit losses and other reserves for the years ended December 31, 2021, 2020 and 2019 is as follows (in thousands):


	2021		2020		2019
Beginning balance	$	1,822	$	1,880	$	1,534
Charges to income from operations	4,576		12,347		5,116
Collections from customers previously reserved and other	(5,001)		(12,405)		(4,770)
Ending balance	$	1,397	$	1,822	$	1,880

Charges to income from operations primarily represents charges to bad debt expense for increases in the allowance for current expected credit losses.

Goodwill and Acquired Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangible Assets

Acquired intangible assets that are subject to amortization consisted of the following as of December 31, 2021 and 2020 (in thousands):


	December 31, 2021						December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Completed technologies	$	257,857	$	(128,715)	$	129,142	$	172,346	$	(111,435)	$	60,911
Customer-related intangible assets	398,182		(216,192)		181,990		358,032		(186,733)		171,299
Non-compete agreements	258		(107)		151		373		(77)		296
Trademarks and trade names	8,039		(6,097)		1,942		7,658		(5,440)		2,218
Acquired license rights	490		(490)		—		490		(490)		—
Total	$	664,826	$	(351,601)	$	313,225	$	538,899	$	(304,175)	$	234,724

Aggregate expense related to amortization of acquired intangible assets for the years ended December 31, 2021, 2020 and 2019 was $48.0 million, $42.0 million and $38.6 million, respectively. Based on the Company's acquired intangible assets as of December 31, 2021, aggregate expense related to amortization of acquired intangible assets is expected to be $48.1 million, $43.5 million, $38.9 million, $35.8 million and $31.0 million for the years ending December 31, 2022, 2023, 2024, 2025 and 2026, respectively.

The changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 were as follows (in thousands):


	2021		2020
Beginning balance	$	1,674,371	$	1,600,265

Acquisition of Guardicore Ltd.	479,110		—
Acquisition of Inverse, Inc.	10,741		—
Acquisition of Asavie Technologies Limited	—		70,200
Measurement period adjustments related to acquisitions completed in prior years	(267)		(1,056)
Foreign currency translation	(7,701)		4,962
Ending balance	$	2,156,254	$	1,674,371

Net Income per Share - Schedule of Anti-Dilutive Securities (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from computation	33,864	36,913	46,094
Service-based RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from computation	776	591	763
Market-and performance-based RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from computation	1,199	1,409	1,349
Convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from computation	9,898	12,922	21,991
Warrants related to issuance of convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from computation	21,991	21,991	21,991

Stock-Based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Equity Plans

In May 2013, the Company's stockholders approved the Akamai Technologies, Inc. 2013 Stock Incentive Plan (as amended in 2015, 2017 and 2019, the "2013 Plan"). The 2013 Plan replaced the Akamai Technologies, Inc. 2009 Stock Incentive Plan (the "2009 Plan"), which in turn replaced the Akamai Technologies, Inc. 2006 Stock Incentive Plan, the Akamai Technologies, Inc. 2001 Stock Incentive Plan and the Akamai Technologies, Inc. 1998 Stock Incentive Plan (together with the 2009 Plan, the "Previous Plans"). The Company no longer issues equity awards under the Previous Plans, and they solely exist to satisfy outstanding equity awards previously granted under those plans. The 2013 Plan allows for the issuance of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, other stock-based awards and cash-based awards for up to 21.5 million shares of common stock to employees, officers, directors, consultants and advisers of the Company. Additionally, the Company may grant up to 3.8 million shares of common stock thereunder that were available for grant under the 2009 Plan immediately prior to stockholder approval of the 2013 Plan. Any shares of common stock that are currently outstanding under the Previous Plans that are terminated, canceled, surrendered or forfeited will become available to grant under the 2013 Plan. As of December 31, 2021, the Company had reserved 7.0 million shares of common stock available for future issuance of equity awards under the 2013 Plan.

The Company has assumed certain stock option plans and the outstanding stock options of companies that it has acquired (“Assumed Plans”). Stock options outstanding as of the date of acquisition under the Assumed Plans were exchanged for the Company’s stock options and adjusted to reflect the appropriate conversion ratio as specified by the applicable acquisition agreement, but are otherwise administered in accordance with the terms of the Assumed Plans. Stock options under the Assumed Plans generally vest over four years and expire ten years from the date of grant.

The 1999 Employee Stock Purchase Plan ("1999 ESPP") permits eligible employees to purchase up to 1.5 million shares each June 1 and December 1, provided that the aggregate number of shares issued shall not exceed 20.0 million. The 1999 ESPP allows participants to purchase shares of common stock at a 15% discount from the fair market value of the stock as determined on specific dates at six-month intervals. During the years ended December 31, 2021, 2020 and 2019, the Company issued 0.6 million, 0.7 million and 0.9 million shares under the 1999 ESPP, respectively, with a weighted average purchase price per share of $92.05, $80.71 and $61.04, respectively. Total cash proceeds from the purchase of shares under the 1999 ESPP in the years ended December 31, 2021, 2020 and 2019 were $59.7 million, $58.4 million and $53.7 million, respectively. As of December 31, 2021, approximately $5.8 million had been withheld from employees for future purchases under the 1999 ESPP.

Stock-Based Compensation Expense


	2021		2020		2019
Cost of revenue	$	27,143	$	24,829	$	22,479
Research and development	65,950		48,855		49,685
Sales and marketing	46,342		65,257		62,150
General and administrative	63,324		58,470		52,826
Total stock-based compensation	202,759		197,411		187,140
Provision for income taxes	(56,084)		(62,153)		(51,177)
Total stock-based compensation, net of taxes	$	146,675	$	135,258	$	135,963

In addition to the amounts of stock-based compensation reported in the table above, the Company’s consolidated statements of income for the years ended December 31, 2021, 2020 and 2019 also include stock-based compensation reflected as a component of amortization primarily consisting of capitalized internal-use software; the additional stock-based compensation was $32.4 million, $29.6 million and $30.6 million, respectively, before taxes.

The Company uses the Black-Scholes option pricing model to determine the fair value of the Company’s stock option awards. This model requires the input of subjective assumptions, including expected stock price volatility and the estimated term of each award. The estimated fair value of the Company's stock-based awards, less expected forfeitures, is amortized over the awards’ vesting period on a straight-line basis. Expected volatilities are based on the Company’s historical stock price volatility and implied volatility from traded options in its stock. The Company uses historical data to estimate the expected term of options granted within the valuation model. The risk-free interest rate for periods commensurate with the expected term of the option is based on the U.S. Treasury yield rate in effect at the time of grant. The expected dividend yield is zero, as the Company currently does not pay a dividend and does not anticipate doing so in the future.


	2021		2020		2019
Expected term (in years)	0.5		0.5		0.5
Risk-free interest rate	0.1	%	0.7	%	2.3	%
Expected volatility	32.2	%	30.4	%	29.6	%
Dividend yield	—	%	—	%	—	%

For the years ended December 31, 2021, 2020 and 2019, the weighted average fair value of awards granted under the 1999 ESPP was $36.17 per share, $32.30 per share and $20.90 per share, respectively.

As of December 31, 2021, total pre-tax unrecognized compensation cost for stock options, restricted stock units, deferred stock units and shares of common stock issued under the 1999 ESPP was $315.5 million. The expense is expected to be recognized through 2025 over a weighted average period of 1.8 years years.

Stock Options

The following table summarizes stock option activity during the year ended December 31, 2021:


	Shares (in thousands)	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2021	6	$	11.60
Exercised	(5)	3.94


Outstanding at December 31, 2021	1	$	41.08	1.55	$	100
Exercisable at December 31, 2021	1	$	41.08	1.55	$	100
Vested or expected to vest December 31, 2021	1	$	41.08	1.55	$	100

The total pre-tax intrinsic value of options exercised during the years ended December 31, 2021, 2020 and 2019 was $0.6 million, $1.0 million and $3.9 million, respectively. The total fair value of options vested for the years ended December 31, 2021, 2020 and 2019 was insignificant.

The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based on the Company’s closing stock price of $117.04 on December 31, 2021, that would have been received by the option holders had all option holders exercised their “in-the-money” options as of that date. The total number of shares issuable upon the exercise of “in-the-money” options exercisable as of December 31, 2021 was 1,315.

Deferred Stock Units

The Company has granted deferred stock units ("DSUs") to non-employee members of its board of directors. Each DSU represents the right to receive one share of the Company’s common stock upon vesting. The holder may elect to defer receipt of the vested shares of stock represented by the DSU for a period of at least one year but not more than ten years from the grant date. DSUs vest 100% on the first anniversary of the grant date. If a director has completed one year of service, vesting of 100% of the DSUs held by such director will accelerate at the time of his or her departure from the Board.

The following table summarizes the DSU activity for the year ended December 31, 2021:


	Units (in thousands)	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2021	114	$	65.09
Granted	21	114.56
Vested and distributed	(37)	72.39
Outstanding at December 31, 2021	98	$	72.96

The total pre-tax intrinsic value of DSUs that were vested and distributed during the years ended December 31, 2021, 2020 and 2019 was $4.1 million, $0.9 million and $7.7 million, respectively. The total fair value of DSUs that were vested and distributed during the years ended December 31, 2021, 2020 and 2019 was $2.7 million, $0.7 million and $4.9 million, respectively. The grant-date fair value is calculated based upon the Company’s closing stock price on the date of grant. For the years ended December 31, 2021, 2020 and 2019, the weighted average fair value of DSU awards granted was $114.56 per share, $100.58 per share and $76.62 per share, respectively. As of December 31, 2021, 20,990 DSUs were unvested, with an aggregate intrinsic value of approximately $2.5 million and a weighted average remaining contractual life of approximately 0.4 years. These units are expected to vest in May 2022.

Restricted Stock Units

The following table summarizes the different types of restricted stock units ("RSUs") granted by the Company during the year ended December 31, 2021 (in thousands):


			December 31, 2021
RSUs with service-based vesting conditions			2,818
RSUs with market-based vesting conditions			85
RSUs with performance-based vesting conditions			396
Total			3,299

RSUs represent the right to receive one share of the Company’s common stock upon vesting. RSUs are granted at the discretion of the board of directors, a committee thereof or, subject to defined limitations, the Chief Executive Officer of the Company, acting as a committee of one director, to whom such authority has been delegated. The Company has issued RSUs that vest based on the passage of time assuming continued service with the Company, RSUs that vest based upon total shareholder return ("TSR") measured against the benchmark TSR of a peer group, and RSUs that vest only upon the achievement of defined performance metrics tied primarily to revenue and earnings targets.

For RSUs with service-based vesting conditions, the fair value is calculated based upon the Company’s closing stock price on the date of grant, and the stock-based compensation expense is being recognized over the vesting period. Most RSUs with service-based vesting provisions vest in installments over a three- or four-year period following the grant date.

The Company uses the Monte Carlo simulation model to determine the fair value of the Company's RSUs based on TSR. This model requires the input of assumptions, including the estimated term of each award, the risk-free interest rate, historical stock price volatility of the Company's shares and historical stock price volatility of peer-company shares. The grant-date fair values of the TSR-based RSUs granted during the years ended December 31, 2021, 2020 and 2019 were estimated using a Monte Carlo simulation model with the following assumptions:


	2021		2020		2019
Expected term (in years)	3.0		3.0		3.0
Risk-free interest rate	0.3	%	0.7	%	2.5	%
Akamai historical share price volatility	32.7	%	28.2	%	32.8	%
Average volatility of peer-company share price	39.6	%	28.9	%	27.0	%

For the years ended December 31, 2021, 2020 and 2019, management measured compensation expense for performance-based RSUs based upon a review of the Company’s expected achievement against specified financial performance targets. Such compensation cost is being recorded using a graded-vesting method for each series of grants of performance-based RSUs, to the extent management has deemed that such awards are probable of vesting based upon the expected achievement against the specified targets. On a periodic basis, management reviews the Company’s expected performance and adjusts the compensation cost, if needed, at such time.

The following table summarizes the RSU activity for the year ended December 31, 2021:


	Units (in thousands)	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2021	4,556	$	83.96
Granted	3,299	99.09
Vested	(2,851)	81.74
Forfeited	(615)	90.44
Outstanding at December 31, 2021	4,389	$	95.75

The total pre-tax intrinsic value of RSUs that vested during the years ended December 31, 2021, 2020 and 2019 was $226.4 million, $192.5 million and $189.4 million, respectively. The total fair value of RSUs that vested during the years ended December 31, 2021, 2020 and 2019 was $233.0 million, $198.9 million and $195.5 million, respectively. The grant-date fair value of each RSU is calculated based upon the Company’s closing stock price on the date of grant. For the years ended December 31, 2021, 2020 and 2019, the weighted average fair value of RSU awards granted was $99.09 per share, $92.42 per share and $72.30 per share, respectively. As of December 31, 2021, 4.4 million RSUs were outstanding and unvested, with an aggregate intrinsic value of $513.9 million and a weighted average remaining vesting period of approximately 1.7 years years. These RSUs are expected to vest on various dates through 2025.

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Use of Estimates The Company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. These principles require management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and the amounts disclosed in the related notes to the consolidated financial statements. Actual results and outcomes may differ materially from management’s estimates, judgments and assumptions. Significant estimates, judgments and assumptions used in these financial statements include, but are not limited to, those related to revenue, accounts receivable and related reserves, valuation and impairment of investments and marketable securities, valuation and useful lives of acquired intangible assets, useful lives and realizability of long-lived assets, capitalized internal-use software development costs, income tax reserves and accounting for stock-based compensation. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. The effects of material revisions in estimates are reflected in the consolidated financial statements prospectively from the date of the change in estimate. Cash, Cash Equivalents and Marketable Securities Cash and cash equivalents consist of cash held in bank deposit accounts and short-term, highly-liquid investments with remaining maturities of three months or less at the date of purchase. Marketable securities consist of corporate, government and other securities. Securities having remaining maturities of less than one year from the date of the balance sheet are classified as short-term, and those with maturities of more than one year from the date of the balance sheet are classified as long-term in the consolidated balance sheets. The Company classifies its debt securities with readily determinable market values as available-for-sale. These investments are classified as marketable securities on the consolidated balance sheets and are carried at fair market value, with unrealized gains and losses considered to be temporary in nature and reported as accumulated other comprehensive loss, a separate component of stockholders’ equity. The Company reviews all investments for reductions in fair value that are other-than-temporary. When such reductions occur, the cost of the investment is adjusted to fair value through recording a loss on investments in the consolidated statements of income. Gains and losses on investments are calculated on the basis of specific identification. Marketable securities are considered to be impaired when a decline in fair value below cost basis is determined to be other-than-temporary. The Company periodically evaluates whether a decline in fair value below cost basis is other-than-temporary by considering available evidence regarding these investments including, among other factors: the duration of the period that, and extent to which, the fair value is less than cost basis; the financial health and business outlook of the issuer, including industry and sector performance and operational and financing cash flow factors; overall market conditions and trends; and the Company’s intent and ability to retain its investment in the security for a period of time sufficient to allow for an anticipated recovery in market value. Once a decline in fair value is determined to be other-than-temporary, a write-down is recorded and a new cost basis in the security is established. Assessing the above factors involves inherent uncertainty. Write-downs, if recorded, could be materially different from the actual market performance of marketable securities in the Company’s portfolio if, among other things, relevant information related to the marketable securities was not publicly available or other factors not considered by the Company would have been relevant to the determination of impairment. Accounts Receivable and Related Reserves The Company’s accounts receivable balance includes unbilled amounts that represent revenue recorded for customers that are typically billed monthly in arrears. The Company records reserves against its accounts receivable balance which primarily consists of allowances for current expected credit losses. Increases and decreases in the allowance for current expected credit losses are included as a component of general and administrative expense in the consolidated statements of income. The allowance for current expected credit losses has been developed using historical loss rates for the previous twelve months as well as expectations about the future where the Company has been able to develop forecasts to support its estimates. In addition, the allowance considers outstanding balances on a customer-specific, account-by-account basis. The Company assesses collectibility based upon a review of customer receivables from prior sales with collection issues where the Company no longer believes that the customer has the ability to pay for services previously provided. The Company also performs ongoing credit evaluations of its customers. If such an evaluation indicates that payment is no longer reasonably assured for services provided, any future services provided to that customer will result in the creation of a cash-basis reserve until the Company receives consistent payments. The Company does not have any off-balance sheet credit exposure related to its customers. Incremental Costs to Obtain a Contract with a Customer The Company capitalizes incremental costs associated with obtaining customer contracts, specifically certain commission and incentive payments. The Company pays commissions and incentives up-front based on contract value upon signing a new arrangement with a customer and upon renewal and upgrades of existing contracts with customers if the renewal and upgrades result in an incremental increase in contract value. To the extent commissions and incentives are earned, the expenses, including estimated payroll taxes, are deferred on the Company's consolidated balance sheet and amortized over the expected life of the customer arrangement on a straight-line basis. Based on the nature of the Company's unique technology and services, and the rate at which the Company continually enhances and updates its technology, the expected life of the customer arrangement is determined to be approximately three years. Additionally, the Company may pay commissions and incentives based upon contract value, rather than incremental increase in contract value, to certain sales groups within the Company. For these commission arrangements, the Company amortizes capitalized costs for contract renewals over an average renewal contract period of 16 months. The Company also incurs commission expense on an ongoing basis based upon revenue recognized. In these cases, no incremental costs are deferred, as the commissions are earned and expensed in the same period for which the associated revenue is recognized. Amortization of the costs is primarily included in sales and marketing expense in the consolidated statements of income. The current portion of deferred commission and incentive payments is included in prepaid expenses and other current assets, and the long-term portion is included in other assets on the Company's consolidated balance sheets. Concentrations of Credit Risk The amounts reflected in the consolidated balance sheets for accounts receivable, other current assets, accounts payable, accrued liabilities and other current liabilities approximate fair values due to their short-term maturities. The Company maintains the majority of its cash, cash equivalents and marketable securities with major financial institutions that the Company believes to be of high credit standing. The Company believes that, as of December 31, 2021, its concentration of credit risk related to cash equivalents and marketable securities was not significant. Concentrations of credit risk with respect to accounts receivable are primarily limited to certain customers to which the Company makes substantial sales. The Company’s customer base consists of a large number of geographically-dispersed customers diversified across several industries. To reduce risk, the Company routinely assesses the financial strength of its customers. Based on such assessments, the Company believes that its accounts receivable credit risk exposure is limited. For the years ended December 31, 2021, 2020 and 2019, no customer accounted for more than 10% of total revenue. As of December 31, 2021, there was one customer with an accounts receivable balance greater than 10% of total accounts receivable, and as of December 31, 2020, no customer had an accounts receivable balance greater than 10% of total accounts receivable. The Company believes that, as of December 31, 2021, its concentration of credit risk related to accounts receivable was not significant. Fair Value of Financial Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company has certain financial assets and liabilities recorded at fair value, principally cash equivalents and short- and long-term marketable securities that have been classified as Level 1, 2 or 3 within the fair value hierarchy. Fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the reporting date. Fair values determined by Level 2 inputs utilize data points other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Fair values determined by Level 3 inputs are based on unobservable data points for the asset or liability. Property and Equipment Property and equipment are recorded at cost, net of accumulated depreciation and amortization. Property and equipment generally include purchases of items with a per-unit value greater than $1,000 and an estimated useful life greater than one year. Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the related lease terms or their estimated useful lives. The Company periodically reviews the estimated useful lives of property and equipment. Changes to the estimated useful lives are recorded prospectively from the date of the change. Upon retirement or sale, the cost of the assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in income from operations. Repairs and maintenance costs are expensed as incurred. Operating Leases The Company enters into operating leases for real estate assets related to office space and co-location assets related to space or racks at co-location facilities and related equipment for its servers and other networking equipment. The Company determines if an arrangement contains a lease at the inception of a contract by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset in exchange for consideration and the right to obtain the economic benefits from the use of the identified asset. Upon commencement of a lease, the Company records a right-of-use asset that represents the Company’s right to use the underlying asset for the lease term and a lease liability that represents an obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Lease payments are discounted at the lease commencement date. As the Company’s leases do not provide an implicit rate, an incremental borrowing rate has been applied based on the Company's credit-adjusted risk-free rate. The Company often enters into contracts that contain both lease and non-lease components. Real estate non-lease components include real estate taxes, insurance, maintenance, parking and other operating costs. Co-location non-lease components include utilities and other operating costs. The Company includes both lease and non-lease components of fixed costs in its lease arrangements as a single lease component. Variable costs, such as utilities based on actual usage, are not included in the measurement of right-of-use assets and lease liabilities but are expensed when the event determining the amount of variable consideration to be paid occurs. The Company’s lease terms often include renewal options and, particularly in the case of co-location arrangements, may include evergreen provisions. The Company’s right-of-use assets and lease liabilities generally do not include the options to extend, or terminate, unless it is reasonably certain that the Company will exercise these options. The Company has elected to exclude leases for certain networking equipment with terms of 12 months or less from its right-of-use assets and lease liabilities on its consolidated balance sheet. Lease expense is recognized on a straight-line basis over the expected lease term. Equity Method Investments The Company accounts for equity investments in which it has significant influence, but not a controlling financial interest, using the equity method of accounting. Under the equity method of accounting, investments are initially recorded at cost, less impairment, and subsequently adjusted to recognize the Company’s share of earnings or losses. In February 2019, the Company and Mitsubishi UFJ Financial Group ("MUFG") announced the establishment of a joint venture, the Global Open Network, Inc. ("GO-NET"), and their plans to offer a new blockchain-based online payment network. The Company's 20% stake in GO-NET is accounted for using the equity method. As of December 31, 2021, the Company's $7.5 million investment is included in other assets on the consolidated balance sheet. The Company recorded a loss of $13.1 million during the year ended December 31, 2020, which included an $11.0 million impairment to reduce the Company's investment to its fair value due to a modified business plan and continued negative projected cash flows. The valuation technique used to measure fair value of the Company's equity method investment in GO-NET was primarily an adjusted net asset value model based on labor costs and the amount of time required to develop a similar technology for use in the planned payment processing service. The Company recorded a loss of $14.0 million and $1.1 million during the years ended December 31, 2021 and 2019, respectively, which reflects its share of the losses incurred by GO-NET during those years. Subsequent to the establishment of the joint venture, the Company recorded revenue of $10.1 million, $11.1 million and $11.6 million for the years ended December 31, 2021, 2020 and 2019, respectively, for services provided to GO-NET. Goodwill, Acquired Intangible Assets and Long-Lived Assets Goodwill is the amount by which the cost of acquired net assets in a business combination exceeds the fair value of the net identifiable assets on the date of purchase and is carried at its historical cost. The Company tests goodwill for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company performs its impairment test of goodwill as of December 31 each year. As of December 31, 2021, 2020 and 2019, the fair value of the Company's reporting unit was substantially in excess of the carrying value. The tests did not result in an impairment to goodwill during the years ended December 31, 2021, 2020 and 2019. Acquired intangible assets consist of completed technologies, customer relationships, trademarks and trade names, non-compete agreements and acquired license rights. Acquired intangible assets, other than goodwill, are amortized over their estimated useful lives based upon the estimated economic value derived from the related intangible asset. Significant judgment is used in determining fair values of acquired intangibles assets and their estimated useful lives. Acquired intangible assets consist of completed technologies, customer relationships, trademarks and trade names, non-compete agreements and acquired license rights. Acquired intangible assets, other than goodwill, are amortized over their estimated useful lives based upon the estimated economic value derived from the related intangible asset. Significant judgment is used in determining fair values of acquired intangibles assets and their estimated useful lives. Fair value and useful life determinations may be based on, among other factors, estimates of future expected cash flows, royalty cost savings and appropriate discount rates used in calculating present values. Long-lived assets, including property and equipment, operating lease right-of-use assets and acquired intangible assets, are reviewed for impairment whenever events or changes in circumstances, such as service discontinuance, technological obsolescence, significant decreases in the Company’s market capitalization, facility closures or work-force reductions indicate that the carrying amount of the long-lived asset may not be recoverable. When such events occur, the Company compares the carrying amount of the asset to the undiscounted expected future cash flows related to the asset. If this comparison indicates that an impairment is present, the amount of the impairment is calculated as the difference between the carrying amount and the fair value of the asset. Contract Liabilities Contract liabilities primarily represent payments received from customers for which the related performance obligations have not yet been satisfied. These balances consist of the unearned portion of monthly service fees and integration fees and prepayments made by customers for future periods. The current and long-term portions of the Company's contract liabilities are included in deferred revenue in the respective sections of the Company's consolidated balance sheets. Revenue Recognition The Company primarily derives revenue from the sale of services to customers executing contracts having terms of one year or longer. Services included in the Company's contracts consist of its core services – the delivery of content, applications and software over the internet – as well as security solutions and professional services. Revenue is recognized upon transfer of control of promised services in an amount that reflects the consideration the Company expects to receive in exchange for those services. The Company enters into contracts that may include various combinations of these services, which are generally capable of being distinct and accounted for as separate performance obligations. These contracts generally commit the customer to a minimum of monthly, quarterly or annual levels of usage and specify the rate at which the customer must pay for actual usage above the stated minimum. Based on the typical structure of the Company's contracts, which are generally for monthly recurring services that are essentially the same over time and have the same pattern of transfer to the customer, most performance obligations represent a promise to deliver a series of distinct services over time. The Company's contracts with customers sometimes include promises to deliver multiple services to a customer. Determining whether services are distinct performance obligations often requires the exercise of judgment by management. For example, advanced features that enhance a service and are highly interrelated are generally not considered distinct; rather, they are combined with the service they relate to into one performance obligation. Different determinations related to combining services into performance obligations could result in differences in the timing and amount of revenue recognized in a period. Generally, the transaction price in a contract is equal to the committed price stated in the contract, less any discounts or rebates. The Company's typical contracts qualify for series accounting, and the pricing terms generally do not require estimation of the transaction price beyond the reporting period. As a result, any incremental fees generated as a result of usage or “bursting” over committed contract levels are recorded in the period to which the services relate. The amount of consideration recognized for usage above contract minimums is limited to the amount the Company expects to be entitled to receive in exchange for providing the services. Once the transaction price has been determined, the Company allocates such price among all performance obligations in the contract on a relative standalone selling price (“SSP”) basis. Determination of SSP requires the exercise of judgment by management. SSP is based on observable inputs such as the price the Company charges for the service when sold separately or the discounted list price per management’s approved price list. In cases where services are not sold separately or price list rates are not available, a cost-plus-margin approach or adjusted market approach is used to determine SSP. Most content delivery and security services represent stand-ready obligations that are satisfied over time as the customer simultaneously receives and consumes the benefits provided by the Company. Accordingly, revenue for those services is recognized over time, generally ratably over the term of the arrangement due to consistent monthly traffic commitments that expire each period. Any bursting over given commitments is recognized in the period in which the traffic was served. For services that involve traffic consumption, revenue is recognized in an amount that reflects the level of traffic served to a customer in a given period. For custom arrangements, other methods may be used as a measure of progress towards satisfying the performance obligations. Some of the Company's contracts are satisfied at a point in time, such as one-time professional services, integration services and most license sales where the primary obligation is delivery of the license at the start of the term. In these cases, revenue is recognized at the point in time of delivery or satisfaction of the performance obligation. From time to time, the Company enters into contracts to sell its services or license its technology to unrelated enterprises at or about the same time that it enters into contracts to purchase products or services from the same enterprises. Consideration payable to a customer is reviewed as part of the transaction price. If the payment to the customer does not represent payment for a distinct service, revenue is recognized only up to the net amount of consideration after customer payment obligations are considered. The Company may also resell the licenses or services of third parties. If the Company is acting as an agent in an arrangement with a customer to provide third party services, the transaction price reflects only the net amount to which the Company will be entitled, after accounting for payments made to the third party responsible for satisfying the performance obligation. Cost of Revenue Cost of revenue consists primarily of fees paid to network providers for bandwidth and to third-party network data centers for housing servers, also known as co-location costs. Cost of revenue also includes employee costs for services delivery and network operation, build-out and support of the Company's network; network storage costs; cost of software licenses; depreciation of network equipment used to deliver the Company’s services; amortization of network-related internal-use software; and costs for the production of live events streamed by the Company for customers. The Company enters into contracts for bandwidth with third-party network providers with terms typically ranging from several months to five years. These contracts generally commit the Company to pay minimum monthly fees plus additional fees for bandwidth usage above the committed level. In some circumstances, internet service providers (“ISPs”) make rack space available for the Company to locate its servers and provide access to their bandwidth at a discount or no cost. Although the Company does not provide any goods or services to the ISPs or the ISPs’ customers under these arrangements, the ISPs and their customers indirectly benefit by accessing content through a local Company server, resulting in better content delivery. The Company records the cost of these vendor relationships at their negotiated transaction price, which is either at a discount or no cost. Research and Development Costs and Capitalized Internal-Use Software Research and development costs consist primarily of payroll and related personnel costs for the design, development, deployment, testing and enhancement of the Company’s services and network. Costs incurred in the development of the Company’s services are expensed as incurred, except certain internal-use software development costs eligible for capitalization. Capitalized costs include external consulting fees, payroll and payroll-related costs and stock-based compensation for employees in the Company’s development and information technology groups who are directly associated with, and who devote time to, the Company’s internal-use software projects. Capitalization begins when the planning stage is complete and the Company commits resources to the software project; capitalization continues during the application development stage. Capitalization ceases when the software has been tested and is ready for its intended use. Costs incurred during the planning, training and post-implementation stages of the software development life-cycle are expensed as incurred. The Company amortizes completed internal-use software that is used on its network to cost of revenue over its estimated useful life. Accounting for Stock-Based Compensation The Company recognizes compensation costs for all stock-based payment awards made to employees based upon the awards’ grant-date fair value. The stock-based payment awards include stock options, restricted stock units, deferred stock units and employee stock purchases related to the Company’s employee stock purchase plan. For stock options, the Company has selected the Black-Scholes option-pricing model to determine the fair value of stock option awards. For stock awards with market-based vesting conditions, the Company uses a Monte Carlo simulation to determine the fair value of the award. For stock options, restricted stock units and deferred stock units that contain only a service-based vesting feature, the Company recognizes compensation cost on a straight-line basis over the award's vesting period. For awards with a performance condition-based vesting feature, the Company recognizes compensation cost on a graded-vesting basis over the award's expected vesting period, commencing when achievement of the performance condition is deemed probable. In addition, for awards that vest and become exercisable only upon achievement of specified performance conditions, the Company makes judgments and estimates each quarter about the probability that such performance conditions will be met or achieved. Any changes to those estimates that the Company makes from time to time may have a significant impact on the stock-based compensation expense recorded and could materially impact the Company’s results of operations. Foreign Currency Translation and Forward Currency Contracts The assets and liabilities of the Company's subsidiaries are translated at the applicable exchange rate as of the balance sheet date, and revenue and expenses are translated at an average rate over the period. Resulting currency translation adjustments are recorded as a component of accumulated other comprehensive loss, a separate component of stockholders’ equity. Gains and losses on inter-company and other non-functional currency transactions are recorded in other income (expense), net. The Company enters into short-term foreign currency forward contracts to offset foreign exchange gains and losses generated by the re-measurement of certain assets and liabilities recorded in non-functional currencies. Changes in the fair value of these derivatives, as well as re-measurement gains and losses, are recognized in current earnings in other income (expense), net. As of December 31, 2021 and 2020, the fair value of the forward currency contracts and the underlying gains and losses for the years ended December 31, 2021, 2020 and 2019 were immaterial. The Company's foreign currency forward contracts may be exposed to credit risk to the extent that its counterparties are unable to meet the terms of the agreements. The Company seeks to minimize counterparty credit (or repayment) risk by entering into transactions only with major financial institutions of investment grade credit rating. Income Taxes The Company's provision for income taxes is comprised of a current and a deferred portion. The current income tax provision is calculated as the estimated taxes payable or refundable on tax returns for the current year. The deferred income tax provision is calculated as the estimated future tax effects attributable to temporary differences and carryforwards using expected tax rates in effect in the years during which the differences are expected to reverse or the carryforwards are expected to be realized. The Company currently has net deferred tax assets consisting of net operating loss (“NOL”) carryforwards, tax credit carryforwards and deductible temporary differences. Management periodically weighs the positive and negative evidence to determine if it is more-likely-than-not that some or all of the deferred tax assets will be realized. The Company has recorded certain tax reserves to address potential exposures involving its income tax positions. These potential tax liabilities result from the varying application of statutes, rules, regulations and interpretations by different taxing jurisdictions. The Company's estimate of the value of its tax reserves contains assumptions based on past experiences and judgments about the interpretation of statutes, rules and regulations by taxing jurisdictions. It is possible that the costs of the ultimate tax liability or benefit from these matters may be more or less than the amount the Company estimated. Uncertainty in income taxes is recognized in the Company's consolidated financial statements using a two-step process. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed more-likely-than-not to be sustained based on technical merit, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. Newly-Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board ("FASB") issued guidance which requires contract assets and contract liabilities from contracts with customers that are acquired in a business combination to be recognized and measured as if the acquirer had originated the original contract. Previously, contract assets and contract liabilities were measured at fair value. The Company adopted this guidance in the fourth quarter of 2021, which required retrospective adoption to all business combinations completed on or after January 1, 2021, and prospectively to all business combinations occurring after adoption. The adoption did not have a material impact to business combinations completed prior to adoption, and did not have a material impact to the Company's financial statements. Recent Accounting Pronouncements In August 2020, the FASB issued guidance that is expected to reduce complexity and improve comparability of financial reporting associated with accounting for convertible instruments and contracts in an entity’s own equity. The Company adopted this guidance on January 1, 2022 on a modified retrospective basis. Upon adoption, the convertible senior notes included on the Company's consolidated balance sheet will more closely reflect the principal amounts. Initially, the Company separated its convertible senior notes into a liability and equity component. The equity portion will now be eliminated, such that convertible senior notes will increase by $304.7 million, deferred income tax assets will increase by $74.0 million and additional paid-in capital will decrease by $375.4 million on the consolidated balance sheet as of January 1, 2022. The net effect of these adjustments will be recorded as an increase to retained earnings as of January 1, 2022. With the elimination of the debt discount created by the equity component, amortization of the debt discount will be eliminated, which will have the impact of decreasing interest expense, and therefore increasing net income and earnings per share, from the period of adoption. Additionally, the new guidance eliminates the use of the treasury stock method for convertible instruments that can be settled in whole or in part with equity, when calculating diluted earnings per share. Instead, it requires application of the if-converted method. Under that method, diluted earnings per share would generally be calculated assuming that all the convertible senior notes were converted solely into shares of common stock at the beginning of the reporting period, unless the result would be antidilutive. The application of the if-converted method would reduce the Company’s reported diluted earnings per share after the adoption date. However, in December 2021, the Company made an irrevocable election to settle the principal portion of the convertible senior notes with cash. Accordingly, effective from that date forward, the if-converted method will only be impacted by any potential shares to be delivered for the amount in excess of the principal portion. The Company does not expect the changes to the diluted earnings per share guidance to materially impact our results of operations.

Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

The following is a summary of available-for-sale marketable securities held as of December 31, 2021 and 2020 (in thousands):


			Gross Unrealized				Aggregate Fair Value		Classification on Balance Sheet
	Amortized Cost								Short-Term Marketable Securities		Long-Term Marketable Securities
As of December 31, 2021			Gains		Losses

Commercial paper	$	25,056	$	—	$	(24)	$	25,032	$	25,032	$	—
Corporate bonds	1,268,991		1,191		(4,275)		1,265,907		459,012		806,895

U.S. government agency obligations	316,728		3		(1,281)		315,450		56,530		258,920
	$	1,610,775	$	1,194	$	(5,580)	$	1,606,389	$	540,574	$	1,065,815

As of December 31, 2020

Commercial paper	$	46,931	$	13	$	(8)	$	46,936	$	46,936	$	—
Corporate bonds	1,628,462		9,482		(262)		1,637,682		607,403		1,030,279
Municipal securities	3,495		—		(6)		3,489		—		3,489
U.S. government agency obligations	435,653		329		(63)		435,919		89,951		345,968
	$	2,114,541	$	9,824	$	(339)	$	2,124,026	$	744,290	$	1,379,736

The Company offers certain eligible employees the ability to participate in a non-qualified deferred compensation plan. The mutual funds held by the Company that are associated with this plan are classified as restricted trading securities. These securities are not included in the available-for-sale securities table above but are included in marketable securities in the consolidated balance sheets.

Unrealized gains and unrealized temporary losses on investments classified as available-for-sale are included within accumulated other comprehensive loss in the consolidated balance sheets. Upon realization, those amounts are reclassified from accumulated other comprehensive loss to interest income in the consolidated statements of income. As of December 31, 2021, the Company held for investment corporate bonds with a fair value of $38.2 million, which are classified as available-for-sale marketable securities and have been in a continuous unrealized loss position for more than 12 months. The unrealized losses related to these corporate bonds were $0.2 million and are included in accumulated other comprehensive loss as of December 31, 2021. The unrealized losses are attributable to changes in interest rates. Based on the evaluation of available evidence, the Company does not believe any unrealized losses represent other than temporary impairments.

The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets as of December 31, 2021 and 2020 (in thousands):


	Total Fair Value		Fair Value Measurements at Reporting Date Using
			Level 1		Level 2
As of December 31, 2021
Cash Equivalents and Marketable Securities:
Money market funds	$	109,313	$	109,313	$	—

Commercial paper	39,031		—		39,031
Corporate bonds	1,265,907		—		1,265,907

U.S. government agency obligations	315,450		—		315,450
Mutual funds	23,129		23,129		—
	$	1,752,830	$	132,442	$	1,620,388

As of December 31, 2020
Cash Equivalents and Marketable Securities:
Money market funds	$	74,417	$	74,417	$	—

Commercial paper	75,785		—		75,785
Corporate bonds	1,637,682		—		1,637,682
Municipal securities	3,489		—		3,489
U.S. government agency obligations	435,919		—		435,919
Mutual funds	19,932		19,932		—
	$	2,247,224	$	94,349	$	2,152,875

As of December 31, 2021 and 2020, the Company grouped money market and mutual funds using a Level 1 valuation because market prices for such investments are readily available in active markets. As of December 31, 2021 and 2020, the Company grouped commercial paper, U.S. government agency obligations, corporate bonds and municipal securities using a Level 2 valuation because quoted prices for similar assets in active markets (or identical assets in an inactive market) are available. The Company did not have any transfers of assets or liabilities between Level 1 or Level 2 of the fair value measurement hierarchy during the years ended December 31, 2021 and 2020.

When developing fair value estimates, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. When available, the Company uses quoted market prices to measure fair value. The valuation technique used to measure fair value for the Company's Level 1 and Level 2 assets is a market approach, using prices and other relevant information generated by market transactions involving identical or comparable assets. If market prices are not available, the fair value measurement is based on models that use primarily market-based parameters including yield curves, volatilities, credit ratings and currency rates. In certain cases where market rate assumptions are not available, the Company is required to make judgments about the assumptions market participants would use to estimate the fair value of a financial instrument.

Contractual maturities of the Company’s available-for-sale marketable securities held as of December 31, 2021 and 2020 were as follows (in thousands):


	December 31, 2021		December 31, 2020
Due in 1 year or less	$	540,574	$	744,290
Due after 1 year through 5 years	1,065,815		1,379,736
	$	1,606,389	$	2,124,026

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Acquisitions - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands	1 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Jan. 31, 2019
Guardicore Ltd.
Business Acquisition [Line Items]
Gross carrying amount of intangible assets	$ 123,600
Weighted average useful life	14 years 7 months 6 days
Guardicore Ltd. \| Completed technologies
Business Acquisition [Line Items]
Gross carrying amount of intangible assets	$ 79,000
Weighted average useful life	15 years
Guardicore Ltd. \| Customer-related intangible assets
Business Acquisition [Line Items]
Gross carrying amount of intangible assets	$ 44,200
Weighted average useful life	14 years
Guardicore Ltd. \| Trademarks
Business Acquisition [Line Items]
Gross carrying amount of intangible assets	$ 400
Weighted average useful life	1 year 10 months 24 days
Asavie
Business Acquisition [Line Items]
Gross carrying amount of intangible assets		$ 58,070
Weighted average useful life		10 years 9 months 18 days
Asavie \| Completed technologies
Business Acquisition [Line Items]
Gross carrying amount of intangible assets		$ 17,300
Weighted average useful life		10 years 1 month 6 days
Asavie \| Customer-related intangible assets
Business Acquisition [Line Items]
Gross carrying amount of intangible assets		$ 40,400
Weighted average useful life		11 years 1 month 6 days
Asavie \| Trademarks
Business Acquisition [Line Items]
Gross carrying amount of intangible assets		$ 100
Weighted average useful life		10 months 24 days
Asavie \| Non-compete agreements
Business Acquisition [Line Items]
Gross carrying amount of intangible assets		$ 270
Weighted average useful life		2 years 10 months 24 days
Janrain, Inc.
Business Acquisition [Line Items]
Gross carrying amount of intangible assets			$ 26,930
Weighted average useful life			11 years 9 months 18 days
Janrain, Inc. \| Completed technologies
Business Acquisition [Line Items]
Gross carrying amount of intangible assets			$ 9,000
Weighted average useful life			7 years 10 months 24 days
Janrain, Inc. \| Customer-related intangible assets
Business Acquisition [Line Items]
Gross carrying amount of intangible assets			$ 17,700
Weighted average useful life			13 years 10 months 24 days
Janrain, Inc. \| Trademarks
Business Acquisition [Line Items]
Gross carrying amount of intangible assets			$ 200
Weighted average useful life			1 year 10 months 24 days
Janrain, Inc. \| Non-compete agreements
Business Acquisition [Line Items]
Gross carrying amount of intangible assets			$ 30
Weighted average useful life			1 year 10 months 24 days

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 536,725	$ 352,917
Marketable securities	541,470	745,156
Accounts receivable, net of reserves of $1,397 and $1,822 at December 31, 2021 and 2020, respectively	675,926	660,052
Prepaid expenses and other current assets	166,313	171,406
Total current assets	1,920,434	1,929,531
Marketable securities	1,088,048	1,398,802
Property and equipment, net	1,534,329	1,478,272
Operating lease right-of-use assets	815,754	793,945
Acquired intangible assets, net	313,225	234,724
Goodwill	2,156,254	1,674,371
Deferred income tax assets	168,342	106,918
Other assets	142,287	147,567
Total assets	8,138,673	7,764,130
Current liabilities:
Accounts payable	109,928	118,546
Accrued expenses	411,590	380,468
Deferred revenue	86,517	76,600
Operating lease liabilities	175,683	154,801
Other current liabilities	6,623	27,755
Total current liabilities	790,341	758,170
Deferred revenue	25,342	5,262
Deferred income tax liabilities	40,974	37,458
Convertible senior notes	1,976,167	1,906,707
Operating lease liabilities	707,087	715,404
Other liabilities	68,748	89,833
Total liabilities	3,608,659	3,512,834
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred stock, $0.01 par value; 5,000,000 shares authorized; 700,000 shares designated as Series A Junior Participating Preferred Stock; no shares issued or outstanding	0	0
Common stock, $0.01 par value; 700,000,000 shares authorized; 160,512,111 and 162,709,720 shares issued and outstanding at December 31, 2021 and 2020, respectively	1,605	1,627
Additional paid-in capital	3,340,822	3,664,820
Accumulated other comprehensive loss	(69,105)	(20,201)
Retained earnings	1,256,692	605,050
Total stockholders’ equity	4,530,014	4,251,296
Total liabilities and stockholders’ equity	$ 8,138,673	$ 7,764,130

Accrued Expenses - Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accounts Payable and Accrued Liabilities, Current [Abstract]
Payroll and other related benefits	$ 222,535	$ 218,588
Income tax payable	72,946	50,812
Bandwidth and co-location	72,904	67,170
Property, use and other taxes	33,883	35,390
Professional service fees	2,929	2,245
Other accrued expenses	6,393	6,263
Total	$ 411,590	$ 380,468

Segment and Geographic Information (Details) $ in Thousands	12 Months Ended
Segment and Geographic Information (Details) $ in Thousands	Dec. 31, 2021 USD ($) segment	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| segment	1
Property and equipment, net	$ 1,534,329	$ 1,478,272
Operating lease right-of-use assets	815,754	793,945
Revenue	3,461,223	3,198,149	$ 2,893,617
U.S.
Segment Reporting Information [Line Items]
Operating lease right-of-use assets	625,424	611,959
Revenue	1,837,508	1,777,435	1,694,211
U.S. \| Property, Plant, and Equipment, Excluding Internal-Use Software
Segment Reporting Information [Line Items]
Property and equipment, net	568,040	572,391
Non-U.S.
Segment Reporting Information [Line Items]
Operating lease right-of-use assets	190,330	181,986
Revenue	1,623,715	1,420,714	$ 1,199,406
Non-U.S. \| Property, Plant, and Equipment, Excluding Internal-Use Software
Segment Reporting Information [Line Items]
Property and equipment, net	$ 510,695	$ 487,174

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130543-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Summary of Significant Accounting Policies - Incremental Costs to Obtain a Contract with a Customer (Details)	Dec. 31, 2021
Customer Arrangement
Capitalized Contract Cost [Line Items]
Expected life of customer arrangement	3 years
Customer Contract
Capitalized Contract Cost [Line Items]
Expected life of customer arrangement	16 months

Summary of Significant Accounting Policies - Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2021 USD ($)
Accounting Policies [Abstract]
Property and equipment per unit value, minimum	$ 1,000
Property, plant and equipment, estimated useful life	1 year

Fair Value Measurements - Schedule of Contractual Maturities of Marketable Securities and Other Investment Related Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Due in 1 year or less	$ 540,574	$ 744,290
Due after 1 year through 5 years	1,065,815	1,379,736
Aggregate Fair Value	$ 1,606,389	$ 2,124,026

Prepaid Expenses and Other Current Assets - Deferred Cost (Details) - Commission and Incentive Payments - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Capitalized Contract Cost [Line Items]
Deferred costs associated with obtaining customer contracts	$ 73,998	$ 77,716
Deferred costs included in prepaid and other current assets
Capitalized Contract Cost [Line Items]
Deferred costs associated with obtaining customer contracts	43,562	54,516
Deferred costs included in other assets
Capitalized Contract Cost [Line Items]
Deferred costs associated with obtaining customer contracts	$ 30,436	$ 23,200

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Accounts receivable reserve	$ 1,397	$ 1,822
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares designated as Series A Junior Participating Preferred Stock (in shares)	700,000	700,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	700,000,000	700,000,000
Common stock, shares issued (in shares)	160,512,111	162,709,720
Common stock, shares outstanding (in shares)	160,512,111	162,709,720

Acquisitions - Narrative (Details) - USD ($)		1 Months Ended							12 Months Ended
Acquisitions - Narrative (Details) - USD ($)	Nov. 01, 2019	Feb. 28, 2022	Oct. 31, 2021	Feb. 28, 2021	Oct. 31, 2020	Feb. 29, 2020	Nov. 30, 2019	Jan. 31, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Acquisition related costs									$ 13,300,000	$ 5,600,000	$ 1,900,000
Goodwill									2,156,254,000	1,674,371,000	1,600,265,000
Payments to acquire assets									$ 0	$ 36,376,000	$ 0
Instart Logic
Business Acquisition [Line Items]
Payments to acquire assets						$ 36,400,000
Instart Logic \| Customer-related intangible assets
Business Acquisition [Line Items]
Useful life						17 years
Linode \| Subsequent Event
Business Acquisition [Line Items]
Total purchase consideration		$ 900,000,000
Guardicore Ltd.
Business Acquisition [Line Items]
Total purchase consideration			$ 610,439,000
Cash transferred			610,400,000
Gross carrying amount of intangible assets			$ 123,600,000
Weighted average useful life			14 years 7 months 6 days
Goodwill			$ 479,110,000
Identifiable intangible assets			123,600,000
Guardicore Ltd. \| Customer-related intangible assets
Business Acquisition [Line Items]
Gross carrying amount of intangible assets			$ 44,200,000
Weighted average useful life			14 years
Inverse, Inc.
Business Acquisition [Line Items]
Cash transferred				$ 17,100,000
Weighted average useful life				14 years
Goodwill				$ 10,700,000
Identifiable intangible assets				7,600,000
Goodwill expected tax deductible amount				$ 10,700,000
Asavie
Business Acquisition [Line Items]
Total purchase consideration					$ 154,952,000
Cash transferred					155,000,000
Gross carrying amount of intangible assets					$ 58,070,000
Weighted average useful life					10 years 9 months 18 days
Goodwill					$ 70,228,000
Identifiable intangible assets					58,070,000
Goodwill expected tax deductible amount					0
Asavie \| Customer-related intangible assets
Business Acquisition [Line Items]
Gross carrying amount of intangible assets					$ 40,400,000
Weighted average useful life					11 years 1 month 6 days
ChameleonX
Business Acquisition [Line Items]
Cash transferred							$ 11,900,000
Weighted average useful life							7 years 1 month 6 days
Goodwill							$ 7,100,000
Identifiable intangible assets							6,100,000
Goodwill expected tax deductible amount							$ 7,300,000
Exceda
Business Acquisition [Line Items]
Cash transferred	$ 32,700,000
Weighted average useful life	8 years 1 month 6 days
Goodwill	$ 14,700,000
Identifiable intangible assets	16,500,000
Goodwill expected tax deductible amount	14,700,000
Indemnification asset	$ 20,000,000
Janrain, Inc.
Business Acquisition [Line Items]
Total purchase consideration								$ 123,632,000
Cash transferred								123,600,000
Gross carrying amount of intangible assets								$ 26,930,000
Weighted average useful life								11 years 9 months 18 days
Goodwill								$ 92,188,000
Identifiable intangible assets								26,930,000
Goodwill expected tax deductible amount								45,700,000
Janrain, Inc. \| Customer-related intangible assets
Business Acquisition [Line Items]
Gross carrying amount of intangible assets								$ 17,700,000
Weighted average useful life								13 years 10 months 24 days

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Revenue	$ 3,461,223	$ 3,198,149	$ 2,893,617
Costs and operating expenses:
Cost of revenue (exclusive of amortization of acquired intangible assets shown below)	1,268,956	1,132,672	987,624
Research and development	335,372	269,315	261,365
Sales and marketing	461,967	510,405	523,883
General and administrative	553,024	547,888	516,093
Amortization of acquired intangible assets	48,019	42,049	38,581
Restructuring charge	10,737	37,286	17,153
Total costs and operating expenses	2,678,075	2,539,615	2,344,699
Income from operations	783,148	658,534	548,918
Interest income	15,620	29,122	34,355
Interest expense	(72,332)	(69,120)	(49,364)
Other income (expense), net	1,785	(2,454)	(1,428)
Income before provision for income taxes	728,221	616,082	532,481
Provision for income taxes	(62,571)	(45,922)	(53,350)
Loss from equity method investment	(14,008)	(13,106)	(1,096)
Net income	$ 651,642	$ 557,054	$ 478,035
Net income per share:
Basic (in dollars per share)	$ 4.01	$ 3.43	$ 2.94
Diluted (in dollars per share)	$ 3.93	$ 3.37	$ 2.90
Shares used in per share calculations:
Basic (in shares)	162,665	162,490	162,706
Diluted (in shares)	165,804	165,213	164,573

Acquisitions

12 Months Ended

Dec. 31, 2021

Business Combinations [Abstract]

Acquisitions

Acquisition-related costs were $13.3 million, $5.6 million and $1.9 million during the years ended December 31, 2021, 2020 and 2019, respectively, and are included in general and administrative expense in the consolidated statements of income. Pro forma results of operations for the acquisitions completed in the years ended December 31, 2021, 2020 and 2019 have not been presented because the effects of the acquisitions, individually and in the aggregate, are not material to the Company's consolidated financial results. Revenue and earnings attributable to acquired operations since the dates of their acquisitions are included in the Company's consolidated statements of income and not presented separately because they are not material.

Linode

In February 2022, the Company announced its intention to acquire Linode Limited Liability Company ("Linode"), for approximately $900.0 million, net of cash acquired and subject to post-closing adjustments. Linode is an infrastructure-as-a-service platform provider that allows for developer-friendly cloud computing capabilities. The acquisition is intended to enhance the Company’s edge computing services by creating a unique cloud platform to build, run and secure applications from the cloud to the edge. The acquisition is expected to close in March 2022.

2021 Acquisitions

Guardicore

In October 2021, the Company acquired Guardicore Ltd. ("Guardicore"), for $610.4 million in cash. Guardicore's micro-segmentation solution is designed to limit user access to only those applications that are authorized to communicate with each other, thereby limiting the spread of malware and protecting the flow of enterprise data across the network. The acquisition is intended to enhance the Company's security portfolio with the addition of Guardicore's micro-segmentation technology. As of December 31, 2021, the purchase price allocation was substantially complete except for the finalization of certain income tax matters and net working capital.

The following table presents the preliminary allocation of the purchase price for Guardicore (in thousands):


Total purchase consideration	$	610,439

Allocation of the purchase consideration:
Cash	$	27,252
Accounts receivable	10,179
Prepaid expenses and other current assets	1,334
Property and equipment	1,221
Operating lease right-of-use assets	4,609
Identifiable intangible assets	123,600
Goodwill	479,110
Deferred income tax assets	7,124
Other assets	890
Total assets acquired	655,319
Accounts payable	(1,523)
Accrued liabilities	(7,218)
Deferred revenue	(34,548)
Operating lease liabilities	(1,591)


Total liabilities assumed	(44,880)
Net assets acquired	$	610,439

The value of the goodwill can be attributed to a number of business factors, including a trained technical and sales workforce and cost synergies expected to be realized. The Company expects that most of the goodwill related to the acquisition of Guardicore will be deductible for tax purposes.

The following were the identified intangible assets acquired and their respective weighted average useful lives (in thousands, except years):


	Gross Carrying Amount		Weighted Average Useful Life (in years)
Completed technologies	$	79,000	15.0
Customer-related intangible assets	44,200		14.0
Trademarks	400		1.9

Total	$	123,600

The Company applied the relief-from-royalty method to estimate the fair values of the completed technologies and trademarks, and the excess earnings method to estimate the fair values of the customer-related acquired intangible assets. The Company applied significant judgment in estimating the fair values of the acquired intangible assets, which involved significant estimates and assumptions with respect to forecasted revenue growth rates and discount rates. The total weighted average amortization period for the intangible assets acquired from Guardicore is 14.6 years. The intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized.

Inverse

In February 2021, the Company acquired Inverse, Inc. ("Inverse"), for $17.1 million. Inverse provides a data repository and algorithms capable of identifying device types accessing the internet. The acquisition enhances the Company's enterprise security capabilities. The Company allocated $10.7 million of the cost of the acquisition to goodwill and $7.6 million to a technology-related identifiable intangible asset with an average useful life of 14.0 years. The acquired goodwill and intangible assets are partially offset by acquired negative working capital balances. The value of the goodwill is primarily attributable to synergies related to the integration of Inverse technology onto the Company's platform as well as a trained technical workforce. The total amount of goodwill related to the acquisition of Inverse expected to be deductible for tax purposes is $10.7 million. The Company finalized its allocation of purchase price in the fourth quarter of 2021, which did not result in a material change to the preliminary allocation.

2020 Acquisitions

Asavie

In October 2020, the Company acquired all outstanding stock of Asavie Technologies Limited ("Asavie"), a privately-funded company headquartered in Dublin, Ireland, for $155.0 million in cash. Asavie operates a global platform for managing the security, performance and access policies for mobile and internet-connected devices; its solutions will become part of Akamai’s security and personalization services product line. The Company finalized its allocation of the purchase price in the fourth quarter of 2021.

The following table presents the allocation of the purchase price for Asavie (in thousands):


Total purchase consideration	$	154,952

Allocation of the purchase consideration:
Cash	$	26,847
Accounts receivable	14,002
Prepaid expenses and other current assets	995
Property and equipment	2,274
Operating lease right-of-use assets	6,104
Identifiable intangible assets	58,070
Goodwill	70,228
Other assets	395
Total assets acquired	178,915
Accounts payable	(951)
Accrued liabilities	(5,926)
Deferred revenue	(3,136)
Operating lease liabilities	(6,104)
Deferred income tax liabilities	(6,965)
Other liabilities	(881)
Total liabilities assumed	(23,963)
Net assets acquired	$	154,952

The value of the goodwill can be attributed to a number of business factors, including a trained technical and sales workforce and cost synergies expected to be realized. None of goodwill related to the acquisition of Asavie is expected to be deductible for tax purposes.

The following were the identified intangible assets acquired and their respective weighted average useful lives (in thousands, except years):


	Gross Carrying Amount		Weighted Average Useful Life (in years)
Completed technologies	$	17,300	10.1
Customer-related intangible assets	40,400		11.1
Trademarks	100		0.9
Non-compete agreements	270		2.9
Total	$	58,070

The total weighted average amortization period for the intangible assets acquired from Asavie is 10.8 years. The intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized.

Instart Logic

In February 2020, the Company acquired certain assets from Instart Logic, Inc., a provider of cloud solutions for improving web and mobile application performance, for $36.4 million in cash. The purchase price was primarily allocated to a customer-related intangible asset that will be amortized over 17.0 years in a pattern that matches expense with expected economic benefits.

2019 Acquisitions

ChameleonX

In November 2019, the Company acquired ChameleonX, Ltd. ("ChameleonX"), an Israel-based company with a solution designed to detect when a website contains or links to malware that causes end user data to be compromised, for $11.9 million in cash. The acquisition is expected to further strengthen the Company's security solutions portfolio. The Company allocated $7.1 million of the cost of the acquisition to goodwill and $6.1 million to a technology-related identifiable intangible asset with an average useful life of 7.1 years. The value of the goodwill is primarily attributable to synergies related to the integration of ChameleonX technology onto the Company's platform as well as a trained technical workforce. The total amount of goodwill related to the acquisition of ChameleonX expected to be deductible for tax purposes is $7.3 million. The Company finalized its allocation of purchase price in the fourth quarter of 2020, which did not result in a material change to the preliminary allocation.

Exceda

On November 1, 2019, in a series of stock and asset purchase transactions, the Company acquired the operations of a group of companies known as Exceda, a vendor of content delivery network and web security services and, collectively, the Company's largest channel partner in Latin America, for $32.7 million in cash. The acquisition is expected to enable the Company to expand its Latin America business more quickly, better support existing and new partners and improve experiences for more customers. The Company allocated $14.7 million of the cost of the acquisition to goodwill and $16.5 million to identifiable intangible assets, primarily customer-related. The total weighted average useful life of the intangible assets acquired from Exceda is 8.1 years. The value of the goodwill is primarily attributable to synergies related to the scale of the combined teams as well as Exceda's trained technical workforce. The total amount of goodwill related to the acquisition of Exceda expected to be deductible for tax purposes is $14.7 million.

The Company acquired various obligations as part of the acquisition for which it is indemnified. The total obligations recorded, with corresponding indemnification asset, totaled $20.0 million. The Company finalized its allocation of purchase price in the fourth quarter of 2020, which did not result in a material change to the preliminary allocation.

Janrain

In January 2019, the Company acquired Janrain, Inc. ("Janrain"), a provider of customer identity and access management solutions, for $123.6 million in cash. The Company incorporated the Janrain technology into its Intelligent Edge Platform. The Company finalized its allocation of purchase price in the fourth quarter of 2019.

The following table presents the final allocation of the purchase price for Janrain (in thousands):


Total purchase consideration	$	123,632

Allocation of the purchase consideration:
Cash	$	2,223
Accounts receivable	7,318
Prepaid expenses and other current assets	838
Identifiable intangible assets	26,930
Goodwill	92,188
Deferred tax asset	12,622
Other assets	87
Total assets acquired	142,206
Accounts payable	(1,642)
Accrued liabilities	(2,596)
Deferred revenue	(14,336)

Total liabilities assumed	(18,574)
Net assets acquired	$	123,632

The value of the goodwill can be attributed to a number of business factors, including a trained technical and sales workforce and cost synergies expected to be realized. The total amount of goodwill related to the acquisition of Janrain expected to be deductible for tax purposes is $45.7 million.

The following were the identified intangible assets acquired and their respective weighted average useful lives (in thousands, except years):


	Gross Carrying Amount		Weighted Average Useful Life (in years)
Completed technologies	$	9,000	7.9
Customer-related intangible assets	17,700		13.9
Trademarks	200		1.9
Non-compete agreements	30		1.9
Total	$	26,930

The total weighted average amortization period for the intangible assets acquired from Janrain is 11.8 years. The intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized.

Debt (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of Convertible Senior Notes

The 2027 Notes consisted of the following components as of December 31, 2021 and 2020 (in thousands):


	December 31, 2021		December 31, 2020
Liability component:
Principal	$	1,150,000	$	1,150,000
Less: debt discount and issuance costs, net of amortization	(169,030)		(196,359)
Net carrying amount	$	980,970	$	953,641

Equity component:	$	220,529	$	220,529

The 2025 Notes consisted of the following components as of December 31, 2021 and 2020 (in thousands):


	December 31, 2021		December 31, 2020
Liability component:
Principal	$	1,150,000	$	1,150,000
Less: debt discount and issuance costs, net of amortization	(154,803)		(196,934)
Net carrying amount	$	995,197	$	953,066

Equity component:	$	285,225	$	285,225

Schedule of Interest Expense

The following table sets forth total interest expense included in the consolidated statements of income for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
Amortization of debt discount and issuance costs	$	69,697	$	67,153	$	52,059
Coupon interest payable on 2025 Notes	1,437		1,437		1,436
Coupon interest payable on 2027 Notes	4,313		4,312		1,557
Revolving credit facility contractual interest expense	557		548		513
Capitalization of interest expense	(3,672)		(4,330)		(6,201)
Total interest expense	$	72,332	$	69,120	$	49,364

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

Restructuring

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring

The Company plans to launch its FlexBase program in May 2022, which is a flexible workspace arrangement that allows employees to choose to work from their home office or a Company office. This is a significant change to the way employees worked prior to this program, and prior to office shutdowns as part of the COVID-19 pandemic. Planning for the program commenced in 2021, and in the fourth quarter of 2021, the Company identified certain facilities that were no longer needed. As a result, an impairment of right-of-use assets and leasehold improvements was recognized. The Company incurred expenses of $3.8 million for the year ended December 31, 2021 related to this program. Management is still evaluating the Company's future work environment and additional charges related to such type of action may occur in 2022.

During the fourth quarter of 2020, management committed to an action to restructure certain parts of the Company to better position itself to become more agile in delivering its solutions. As a result, certain headcount reductions were necessary and certain capitalized internal-use software charges were realized for software not yet placed into service that will not be completed and implemented due to this action. The Company incurred expenses of $31.5 million related to this action, of which $7.9 million were incurred during the year ended December 31, 2021 and $23.6 million were incurred during the year ended December 31, 2020. The Company does not expect to incur material additional charges related to this action.

During the fourth quarter of 2019, management committed to an action to restructure certain parts of the Company to focus on investments with the potential to accelerate revenue growth. As a result, certain headcount reductions were necessary, certain capitalized internal-use software charges were realized for software not yet placed into service that will not be completed and implemented due to this action and an impairment of a right-of-use asset was recognized related to exiting a facility no longer needed. The Company incurred expenses of $20.6 million related to this action, of which $13.2 million were incurred during the year ended December 31, 2020 and $10.2 million were incurred during the year ended December 31, 2019. The Company also incurred a benefit of $2.8 million during the year ended December 31, 2021 to reflect the release by the landlord of the remaining lease obligation for the exited facility. The Company does not expect to incur any additional charges related to this action.

The Company also recognizes restructuring charges for redundant employees, facilities and contracts associated with completed acquisitions. Restructuring charges related to acquisitions were not material in any of the years ended December 31, 2021, 2020 and 2019.

The following table summarizes the activity of the Company's accrual for employee severance and related benefits for all restructuring actions during the years ended December 31, 2021, 2020 and 2019 (in thousands):


	Employee Severance and Related Benefits
Balance January 1, 2019	$	10,508
Costs incurred	12,455
Cash disbursements	(17,294)

Translation adjustments and other	38
Balance December 31, 2019	5,707
Costs incurred	26,332
Cash disbursements	(10,118)

Translation adjustments and other	130
Balance December 31, 2020	22,051
Costs incurred	6,600
Cash disbursements	(27,095)

Translation adjustments and other	(368)
Balance December 31, 2021	$	1,188

Akamai Foundation (Details) $ in Millions	12 Months Ended
Akamai Foundation (Details) $ in Millions	Dec. 31, 2020 USD ($)
The Akamai Foundation \| One-Time Charitable Endowment
Related Party Transaction [Line Items]
Contribution amount	$ 20.0

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2021
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The Company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. These principles require management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and the amounts disclosed in the related notes to the consolidated financial statements. Actual results and outcomes may differ materially from management’s estimates, judgments and assumptions. Significant estimates, judgments and assumptions used in these financial statements include, but are not limited to, those related to revenue, accounts receivable and related reserves, valuation and impairment of investments and marketable securities, valuation and useful lives of acquired intangible assets, useful lives and realizability of long-lived assets, capitalized internal-use software development costs, income tax reserves and accounting for stock-based compensation. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. The effects of material revisions in estimates are reflected in the consolidated financial statements prospectively from the date of the change in estimate.
Cash, Cash Equivalents and Marketable Securities	Cash, Cash Equivalents and Marketable Securities Cash and cash equivalents consist of cash held in bank deposit accounts and short-term, highly-liquid investments with remaining maturities of three months or less at the date of purchase. Marketable securities consist of corporate, government and other securities. Securities having remaining maturities of less than one year from the date of the balance sheet are classified as short-term, and those with maturities of more than one year from the date of the balance sheet are classified as long-term in the consolidated balance sheets. The Company classifies its debt securities with readily determinable market values as available-for-sale. These investments are classified as marketable securities on the consolidated balance sheets and are carried at fair market value, with unrealized gains and losses considered to be temporary in nature and reported as accumulated other comprehensive loss, a separate component of stockholders’ equity. The Company reviews all investments for reductions in fair value that are other-than-temporary. When such reductions occur, the cost of the investment is adjusted to fair value through recording a loss on investments in the consolidated statements of income. Gains and losses on investments are calculated on the basis of specific identification. Marketable securities are considered to be impaired when a decline in fair value below cost basis is determined to be other-than-temporary. The Company periodically evaluates whether a decline in fair value below cost basis is other-than-temporary by considering available evidence regarding these investments including, among other factors: the duration of the period that, and extent to which, the fair value is less than cost basis; the financial health and business outlook of the issuer, including industry and sector performance and operational and financing cash flow factors; overall market conditions and trends; and the Company’s intent and ability to retain its investment in the security for a period of time sufficient to allow for an anticipated recovery in market value. Once a decline in fair value is determined to be other-than-temporary, a write-down is recorded and a new cost basis in the security is established. Assessing the above factors involves inherent uncertainty. Write-downs, if recorded, could be materially different from the actual market performance of marketable securities in the Company’s portfolio if, among other things, relevant information related to the marketable securities was not publicly available or other factors not considered by the Company would have been relevant to the determination of impairment.
Accounts Receivable and Related Reserves	Accounts Receivable and Related Reserves The Company’s accounts receivable balance includes unbilled amounts that represent revenue recorded for customers that are typically billed monthly in arrears. The Company records reserves against its accounts receivable balance which primarily consists of allowances for current expected credit losses. Increases and decreases in the allowance for current expected credit losses are included as a component of general and administrative expense in the consolidated statements of income. The allowance for current expected credit losses has been developed using historical loss rates for the previous twelve months as well as expectations about the future where the Company has been able to develop forecasts to support its estimates. In addition, the allowance considers outstanding balances on a customer-specific, account-by-account basis. The Company assesses collectibility based upon a review of customer receivables from prior sales with collection issues where the Company no longer believes that the customer has the ability to pay for services previously provided. The Company also performs ongoing credit evaluations of its customers. If such an evaluation indicates that payment is no longer reasonably assured for services provided, any future services provided to that customer will result in the creation of a cash-basis reserve until the Company receives consistent payments. The Company does not have any off-balance sheet credit exposure related to its customers.
Revenue Recognition, Incremental Costs to Obtain a Contract with a Customer, Contract Liabilities and Cost of Revenue	Incremental Costs to Obtain a Contract with a Customer The Company capitalizes incremental costs associated with obtaining customer contracts, specifically certain commission and incentive payments. The Company pays commissions and incentives up-front based on contract value upon signing a new arrangement with a customer and upon renewal and upgrades of existing contracts with customers if the renewal and upgrades result in an incremental increase in contract value. To the extent commissions and incentives are earned, the expenses, including estimated payroll taxes, are deferred on the Company's consolidated balance sheet and amortized over the expected life of the customer arrangement on a straight-line basis. Based on the nature of the Company's unique technology and services, and the rate at which the Company continually enhances and updates its technology, the expected life of the customer arrangement is determined to be approximately three years. Additionally, the Company may pay commissions and incentives based upon contract value, rather than incremental increase in contract value, to certain sales groups within the Company. For these commission arrangements, the Company amortizes capitalized costs for contract renewals over an average renewal contract period of 16 months. The Company also incurs commission expense on an ongoing basis based upon revenue recognized. In these cases, no incremental costs are deferred, as the commissions are earned and expensed in the same period for which the associated revenue is recognized. Amortization of the costs is primarily included in sales and marketing expense in the consolidated statements of income. The current portion of deferred commission and incentive payments is included in prepaid expenses and other current assets, and the long-term portion is included in other assets on the Company's consolidated balance sheets. Contract Liabilities Contract liabilities primarily represent payments received from customers for which the related performance obligations have not yet been satisfied. These balances consist of the unearned portion of monthly service fees and integration fees and prepayments made by customers for future periods. The current and long-term portions of the Company's contract liabilities are included in deferred revenue in the respective sections of the Company's consolidated balance sheets. Revenue Recognition The Company primarily derives revenue from the sale of services to customers executing contracts having terms of one year or longer. Services included in the Company's contracts consist of its core services – the delivery of content, applications and software over the internet – as well as security solutions and professional services. Revenue is recognized upon transfer of control of promised services in an amount that reflects the consideration the Company expects to receive in exchange for those services. The Company enters into contracts that may include various combinations of these services, which are generally capable of being distinct and accounted for as separate performance obligations. These contracts generally commit the customer to a minimum of monthly, quarterly or annual levels of usage and specify the rate at which the customer must pay for actual usage above the stated minimum. Based on the typical structure of the Company's contracts, which are generally for monthly recurring services that are essentially the same over time and have the same pattern of transfer to the customer, most performance obligations represent a promise to deliver a series of distinct services over time. The Company's contracts with customers sometimes include promises to deliver multiple services to a customer. Determining whether services are distinct performance obligations often requires the exercise of judgment by management. For example, advanced features that enhance a service and are highly interrelated are generally not considered distinct; rather, they are combined with the service they relate to into one performance obligation. Different determinations related to combining services into performance obligations could result in differences in the timing and amount of revenue recognized in a period. Generally, the transaction price in a contract is equal to the committed price stated in the contract, less any discounts or rebates. The Company's typical contracts qualify for series accounting, and the pricing terms generally do not require estimation of the transaction price beyond the reporting period. As a result, any incremental fees generated as a result of usage or “bursting” over committed contract levels are recorded in the period to which the services relate. The amount of consideration recognized for usage above contract minimums is limited to the amount the Company expects to be entitled to receive in exchange for providing the services. Once the transaction price has been determined, the Company allocates such price among all performance obligations in the contract on a relative standalone selling price (“SSP”) basis. Determination of SSP requires the exercise of judgment by management. SSP is based on observable inputs such as the price the Company charges for the service when sold separately or the discounted list price per management’s approved price list. In cases where services are not sold separately or price list rates are not available, a cost-plus-margin approach or adjusted market approach is used to determine SSP. Most content delivery and security services represent stand-ready obligations that are satisfied over time as the customer simultaneously receives and consumes the benefits provided by the Company. Accordingly, revenue for those services is recognized over time, generally ratably over the term of the arrangement due to consistent monthly traffic commitments that expire each period. Any bursting over given commitments is recognized in the period in which the traffic was served. For services that involve traffic consumption, revenue is recognized in an amount that reflects the level of traffic served to a customer in a given period. For custom arrangements, other methods may be used as a measure of progress towards satisfying the performance obligations. Some of the Company's contracts are satisfied at a point in time, such as one-time professional services, integration services and most license sales where the primary obligation is delivery of the license at the start of the term. In these cases, revenue is recognized at the point in time of delivery or satisfaction of the performance obligation. From time to time, the Company enters into contracts to sell its services or license its technology to unrelated enterprises at or about the same time that it enters into contracts to purchase products or services from the same enterprises. Consideration payable to a customer is reviewed as part of the transaction price. If the payment to the customer does not represent payment for a distinct service, revenue is recognized only up to the net amount of consideration after customer payment obligations are considered. The Company may also resell the licenses or services of third parties. If the Company is acting as an agent in an arrangement with a customer to provide third party services, the transaction price reflects only the net amount to which the Company will be entitled, after accounting for payments made to the third party responsible for satisfying the performance obligation. Cost of Revenue Cost of revenue consists primarily of fees paid to network providers for bandwidth and to third-party network data centers for housing servers, also known as co-location costs. Cost of revenue also includes employee costs for services delivery and network operation, build-out and support of the Company's network; network storage costs; cost of software licenses; depreciation of network equipment used to deliver the Company’s services; amortization of network-related internal-use software; and costs for the production of live events streamed by the Company for customers. The Company enters into contracts for bandwidth with third-party network providers with terms typically ranging from several months to five years. These contracts generally commit the Company to pay minimum monthly fees plus additional fees for bandwidth usage above the committed level. In some circumstances, internet service providers (“ISPs”) make rack space available for the Company to locate its servers and provide access to their bandwidth at a discount or no cost. Although the Company does not provide any goods or services to the ISPs or the ISPs’ customers under these arrangements, the ISPs and their customers indirectly benefit by accessing content through a local Company server, resulting in better content delivery. The Company records the cost of these vendor relationships at their negotiated transaction price, which is either at a discount or no cost.
Concentrations of Credit Risk	Concentrations of Credit Risk The amounts reflected in the consolidated balance sheets for accounts receivable, other current assets, accounts payable, accrued liabilities and other current liabilities approximate fair values due to their short-term maturities. The Company maintains the majority of its cash, cash equivalents and marketable securities with major financial institutions that the Company believes to be of high credit standing. The Company believes that, as of December 31, 2021, its concentration of credit risk related to cash equivalents and marketable securities was not significant. Concentrations of credit risk with respect to accounts receivable are primarily limited to certain customers to which the Company makes substantial sales. The Company’s customer base consists of a large number of geographically-dispersed customers diversified across several industries. To reduce risk, the Company routinely assesses the financial strength of its customers. Based on such assessments, the Company believes that its accounts receivable credit risk exposure is limited. For the years ended December 31, 2021, 2020 and 2019, no customer accounted for more than 10% of total revenue. As of December 31, 2021, there was one customer with an accounts receivable balance greater than 10% of total accounts receivable, and as of December 31, 2020, no customer had an accounts receivable balance greater than 10% of total accounts receivable. The Company believes that, as of December 31, 2021, its concentration of credit risk related to accounts receivable was not significant.
Fair Value of Financial Measurements	Fair Value of Financial Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company has certain financial assets and liabilities recorded at fair value, principally cash equivalents and short- and long-term marketable securities that have been classified as Level 1, 2 or 3 within the fair value hierarchy. Fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the reporting date. Fair values determined by Level 2 inputs utilize data points other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Fair values determined by Level 3 inputs are based on unobservable data points for the asset or liability.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost, net of accumulated depreciation and amortization. Property and equipment generally include purchases of items with a per-unit value greater than $1,000 and an estimated useful life greater than one year. Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the related lease terms or their estimated useful lives. The Company periodically reviews the estimated useful lives of property and equipment. Changes to the estimated useful lives are recorded prospectively from the date of the change. Upon retirement or sale, the cost of the assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in income from operations. Repairs and maintenance costs are expensed as incurred.
Operating Leases	Operating Leases The Company enters into operating leases for real estate assets related to office space and co-location assets related to space or racks at co-location facilities and related equipment for its servers and other networking equipment. The Company determines if an arrangement contains a lease at the inception of a contract by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset in exchange for consideration and the right to obtain the economic benefits from the use of the identified asset. Upon commencement of a lease, the Company records a right-of-use asset that represents the Company’s right to use the underlying asset for the lease term and a lease liability that represents an obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Lease payments are discounted at the lease commencement date. As the Company’s leases do not provide an implicit rate, an incremental borrowing rate has been applied based on the Company's credit-adjusted risk-free rate. The Company often enters into contracts that contain both lease and non-lease components. Real estate non-lease components include real estate taxes, insurance, maintenance, parking and other operating costs. Co-location non-lease components include utilities and other operating costs. The Company includes both lease and non-lease components of fixed costs in its lease arrangements as a single lease component. Variable costs, such as utilities based on actual usage, are not included in the measurement of right-of-use assets and lease liabilities but are expensed when the event determining the amount of variable consideration to be paid occurs. The Company’s lease terms often include renewal options and, particularly in the case of co-location arrangements, may include evergreen provisions. The Company’s right-of-use assets and lease liabilities generally do not include the options to extend, or terminate, unless it is reasonably certain that the Company will exercise these options. The Company has elected to exclude leases for certain networking equipment with terms of 12 months or less from its right-of-use assets and lease liabilities on its consolidated balance sheet. Lease expense is recognized on a straight-line basis over the expected lease term.
Equity Method Investments	Equity Method Investments The Company accounts for equity investments in which it has significant influence, but not a controlling financial interest, using the equity method of accounting. Under the equity method of accounting, investments are initially recorded at cost, less impairment, and subsequently adjusted to recognize the Company’s share of earnings or losses.
Goodwill, Acquired Intangible Assets and Long-Lived Assets	Goodwill, Acquired Intangible Assets and Long-Lived Assets Goodwill is the amount by which the cost of acquired net assets in a business combination exceeds the fair value of the net identifiable assets on the date of purchase and is carried at its historical cost. The Company tests goodwill for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company performs its impairment test of goodwill as of December 31 each year. As of December 31, 2021, 2020 and 2019, the fair value of the Company's reporting unit was substantially in excess of the carrying value. The tests did not result in an impairment to goodwill during the years ended December 31, 2021, 2020 and 2019. Acquired intangible assets consist of completed technologies, customer relationships, trademarks and trade names, non-compete agreements and acquired license rights. Acquired intangible assets, other than goodwill, are amortized over their estimated useful lives based upon the estimated economic value derived from the related intangible asset. Significant judgment is used in determining fair values of acquired intangibles assets and their estimated useful lives. Acquired intangible assets consist of completed technologies, customer relationships, trademarks and trade names, non-compete agreements and acquired license rights. Acquired intangible assets, other than goodwill, are amortized over their estimated useful lives based upon the estimated economic value derived from the related intangible asset. Significant judgment is used in determining fair values of acquired intangibles assets and their estimated useful lives. Fair value and useful life determinations may be based on, among other factors, estimates of future expected cash flows, royalty cost savings and appropriate discount rates used in calculating present values. Long-lived assets, including property and equipment, operating lease right-of-use assets and acquired intangible assets, are reviewed for impairment whenever events or changes in circumstances, such as service discontinuance, technological obsolescence, significant decreases in the Company’s market capitalization, facility closures or work-force reductions indicate that the carrying amount of the long-lived asset may not be recoverable. When such events occur, the Company compares the carrying amount of the asset to the undiscounted expected future cash flows related to the asset. If this comparison indicates that an impairment is present, the amount of the impairment is calculated as the difference between the carrying amount and the fair value of the asset.
Research and Development Costs and Capitalized Internal-Use Software	Research and Development Costs and Capitalized Internal-Use Software Research and development costs consist primarily of payroll and related personnel costs for the design, development, deployment, testing and enhancement of the Company’s services and network. Costs incurred in the development of the Company’s services are expensed as incurred, except certain internal-use software development costs eligible for capitalization. Capitalized costs include external consulting fees, payroll and payroll-related costs and stock-based compensation for employees in the Company’s development and information technology groups who are directly associated with, and who devote time to, the Company’s internal-use software projects. Capitalization begins when the planning stage is complete and the Company commits resources to the software project; capitalization continues during the application development stage. Capitalization ceases when the software has been tested and is ready for its intended use. Costs incurred during the planning, training and post-implementation stages of the software development life-cycle are expensed as incurred. The Company amortizes completed internal-use software that is used on its network to cost of revenue over its estimated useful life.
Accounting for Stock-Based Compensation	Accounting for Stock-Based Compensation The Company recognizes compensation costs for all stock-based payment awards made to employees based upon the awards’ grant-date fair value. The stock-based payment awards include stock options, restricted stock units, deferred stock units and employee stock purchases related to the Company’s employee stock purchase plan. For stock options, the Company has selected the Black-Scholes option-pricing model to determine the fair value of stock option awards. For stock awards with market-based vesting conditions, the Company uses a Monte Carlo simulation to determine the fair value of the award. For stock options, restricted stock units and deferred stock units that contain only a service-based vesting feature, the Company recognizes compensation cost on a straight-line basis over the award's vesting period. For awards with a performance condition-based vesting feature, the Company recognizes compensation cost on a graded-vesting basis over the award's expected vesting period, commencing when achievement of the performance condition is deemed probable. In addition, for awards that vest and become exercisable only upon achievement of specified performance conditions, the Company makes judgments and estimates each quarter about the probability that such performance conditions will be met or achieved. Any changes to those estimates that the Company makes from time to time may have a significant impact on the stock-based compensation expense recorded and could materially impact the Company’s results of operations.
Foreign Currency Translation and Forward Currency Contracts	Foreign Currency Translation and Forward Currency Contracts The assets and liabilities of the Company's subsidiaries are translated at the applicable exchange rate as of the balance sheet date, and revenue and expenses are translated at an average rate over the period. Resulting currency translation adjustments are recorded as a component of accumulated other comprehensive loss, a separate component of stockholders’ equity. Gains and losses on inter-company and other non-functional currency transactions are recorded in other income (expense), net. The Company enters into short-term foreign currency forward contracts to offset foreign exchange gains and losses generated by the re-measurement of certain assets and liabilities recorded in non-functional currencies. Changes in the fair value of these derivatives, as well as re-measurement gains and losses, are recognized in current earnings in other income (expense), net. As of December 31, 2021 and 2020, the fair value of the forward currency contracts and the underlying gains and losses for the years ended December 31, 2021, 2020 and 2019 were immaterial. The Company's foreign currency forward contracts may be exposed to credit risk to the extent that its counterparties are unable to meet the terms of the agreements. The Company seeks to minimize counterparty credit (or repayment) risk by entering into transactions only with major financial institutions of investment grade credit rating.
Income Taxes	Income Taxes The Company's provision for income taxes is comprised of a current and a deferred portion. The current income tax provision is calculated as the estimated taxes payable or refundable on tax returns for the current year. The deferred income tax provision is calculated as the estimated future tax effects attributable to temporary differences and carryforwards using expected tax rates in effect in the years during which the differences are expected to reverse or the carryforwards are expected to be realized. The Company currently has net deferred tax assets consisting of net operating loss (“NOL”) carryforwards, tax credit carryforwards and deductible temporary differences. Management periodically weighs the positive and negative evidence to determine if it is more-likely-than-not that some or all of the deferred tax assets will be realized. The Company has recorded certain tax reserves to address potential exposures involving its income tax positions. These potential tax liabilities result from the varying application of statutes, rules, regulations and interpretations by different taxing jurisdictions. The Company's estimate of the value of its tax reserves contains assumptions based on past experiences and judgments about the interpretation of statutes, rules and regulations by taxing jurisdictions. It is possible that the costs of the ultimate tax liability or benefit from these matters may be more or less than the amount the Company estimated. Uncertainty in income taxes is recognized in the Company's consolidated financial statements using a two-step process. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed more-likely-than-not to be sustained based on technical merit, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement.
Newly-Adopted Accounting Pronouncements and Recent Accounting Pronouncements	Newly-Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board ("FASB") issued guidance which requires contract assets and contract liabilities from contracts with customers that are acquired in a business combination to be recognized and measured as if the acquirer had originated the original contract. Previously, contract assets and contract liabilities were measured at fair value. The Company adopted this guidance in the fourth quarter of 2021, which required retrospective adoption to all business combinations completed on or after January 1, 2021, and prospectively to all business combinations occurring after adoption. The adoption did not have a material impact to business combinations completed prior to adoption, and did not have a material impact to the Company's financial statements. Recent Accounting Pronouncements In August 2020, the FASB issued guidance that is expected to reduce complexity and improve comparability of financial reporting associated with accounting for convertible instruments and contracts in an entity’s own equity. The Company adopted this guidance on January 1, 2022 on a modified retrospective basis. Upon adoption, the convertible senior notes included on the Company's consolidated balance sheet will more closely reflect the principal amounts. Initially, the Company separated its convertible senior notes into a liability and equity component. The equity portion will now be eliminated, such that convertible senior notes will increase by $304.7 million, deferred income tax assets will increase by $74.0 million and additional paid-in capital will decrease by $375.4 million on the consolidated balance sheet as of January 1, 2022. The net effect of these adjustments will be recorded as an increase to retained earnings as of January 1, 2022. With the elimination of the debt discount created by the equity component, amortization of the debt discount will be eliminated, which will have the impact of decreasing interest expense, and therefore increasing net income and earnings per share, from the period of adoption. Additionally, the new guidance eliminates the use of the treasury stock method for convertible instruments that can be settled in whole or in part with equity, when calculating diluted earnings per share. Instead, it requires application of the if-converted method. Under that method, diluted earnings per share would generally be calculated assuming that all the convertible senior notes were converted solely into shares of common stock at the beginning of the reporting period, unless the result would be antidilutive. The application of the if-converted method would reduce the Company’s reported diluted earnings per share after the adoption date. However, in December 2021, the Company made an irrevocable election to settle the principal portion of the convertible senior notes with cash. Accordingly, effective from that date forward, the if-converted method will only be impacted by any potential shares to be delivered for the amount in excess of the principal portion. The Company does not expect the changes to the diluted earnings per share guidance to materially impact our results of operations.

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2021

Business Combinations [Abstract]

Schedule of Purchase Price Allocation

The following table presents the preliminary allocation of the purchase price for Guardicore (in thousands):


Total purchase consideration	$	610,439

Allocation of the purchase consideration:
Cash	$	27,252
Accounts receivable	10,179
Prepaid expenses and other current assets	1,334
Property and equipment	1,221
Operating lease right-of-use assets	4,609
Identifiable intangible assets	123,600
Goodwill	479,110
Deferred income tax assets	7,124
Other assets	890
Total assets acquired	655,319
Accounts payable	(1,523)
Accrued liabilities	(7,218)
Deferred revenue	(34,548)
Operating lease liabilities	(1,591)


Total liabilities assumed	(44,880)
Net assets acquired	$	610,439

The following table presents the allocation of the purchase price for Asavie (in thousands):


Total purchase consideration	$	154,952

Allocation of the purchase consideration:
Cash	$	26,847
Accounts receivable	14,002
Prepaid expenses and other current assets	995
Property and equipment	2,274
Operating lease right-of-use assets	6,104
Identifiable intangible assets	58,070
Goodwill	70,228
Other assets	395
Total assets acquired	178,915
Accounts payable	(951)
Accrued liabilities	(5,926)
Deferred revenue	(3,136)
Operating lease liabilities	(6,104)
Deferred income tax liabilities	(6,965)
Other liabilities	(881)
Total liabilities assumed	(23,963)
Net assets acquired	$	154,952

The following table presents the final allocation of the purchase price for Janrain (in thousands):


Total purchase consideration	$	123,632

Allocation of the purchase consideration:
Cash	$	2,223
Accounts receivable	7,318
Prepaid expenses and other current assets	838
Identifiable intangible assets	26,930
Goodwill	92,188
Deferred tax asset	12,622
Other assets	87
Total assets acquired	142,206
Accounts payable	(1,642)
Accrued liabilities	(2,596)
Deferred revenue	(14,336)

Total liabilities assumed	(18,574)
Net assets acquired	$	123,632

Schedule of Acquired Intangible Assets

Acquired intangible assets that are subject to amortization consisted of the following as of December 31, 2021 and 2020 (in thousands):


	December 31, 2021						December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Completed technologies	$	257,857	$	(128,715)	$	129,142	$	172,346	$	(111,435)	$	60,911
Customer-related intangible assets	398,182		(216,192)		181,990		358,032		(186,733)		171,299
Non-compete agreements	258		(107)		151		373		(77)		296
Trademarks and trade names	8,039		(6,097)		1,942		7,658		(5,440)		2,218
Acquired license rights	490		(490)		—		490		(490)		—
Total	$	664,826	$	(351,601)	$	313,225	$	538,899	$	(304,175)	$	234,724

The following were the identified intangible assets acquired and their respective weighted average useful lives (in thousands, except years):


	Gross Carrying Amount		Weighted Average Useful Life (in years)
Completed technologies	$	79,000	15.0
Customer-related intangible assets	44,200		14.0
Trademarks	400		1.9

Total	$	123,600

The following were the identified intangible assets acquired and their respective weighted average useful lives (in thousands, except years):


	Gross Carrying Amount		Weighted Average Useful Life (in years)
Completed technologies	$	17,300	10.1
Customer-related intangible assets	40,400		11.1
Trademarks	100		0.9
Non-compete agreements	270		2.9
Total	$	58,070

The following were the identified intangible assets acquired and their respective weighted average useful lives (in thousands, except years):


	Gross Carrying Amount		Weighted Average Useful Life (in years)
Completed technologies	$	9,000	7.9
Customer-related intangible assets	17,700		13.9
Trademarks	200		1.9
Non-compete agreements	30		1.9
Total	$	26,930

Goodwill and Acquired Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Changes in the carrying amount of goodwill
Beginning balance	$ 1,674,371	$ 1,600,265
Measurement period adjustments related to acquisitions completed in prior years	(267)	(1,056)
Foreign currency translation	(7,701)	4,962
Ending balance	2,156,254	1,674,371
Guardicore Ltd.
Changes in the carrying amount of goodwill
Acquisition	479,110	0
Inverse, Inc.
Changes in the carrying amount of goodwill
Acquisition	10,741	0
Asavie
Changes in the carrying amount of goodwill
Acquisition	$ 0	$ 70,200

Restructuring - Schedule of Restructuring Accrual (Details) - Employee Severance and Related Benefits - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Restructuring Reserve [Roll Forward]
Beginning balance	$ 22,051	$ 5,707	$ 10,508
Costs incurred	6,600	26,332	12,455
Cash disbursements	(27,095)	(10,118)	(17,294)
Translation adjustments and other	(368)	130	38
Ending balance	$ 1,188	$ 22,051	$ 5,707

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	$ 24,105	$ 27,359	$ 64,892
Gross increases – tax positions of prior periods	4,293	2,539	74
Gross increases – current period tax positions	3,607	1,946	2,006
Gross decreases – tax positions of prior periods	(816)	(3,540)	(5,201)
Gross decreases – lapse of applicable statute of limitations	(8,626)	(4,199)	(28,672)
Gross decreases – settlements	0	0	(5,740)
Balance at end of year	$ 22,563	$ 24,105	$ 27,359

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Components of Lease Expense

The following table is a summary of the Company’s operating lease costs for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	Real Estate Arrangements		Co-location Arrangements		Total
2021
Operating lease cost	$	84,100	$	136,673	$	220,773
Short-term lease cost	58		17,660		17,718
Variable lease cost	22,016		31,428		53,444
Sublease income	(21,033)		—		(21,033)
Total operating lease costs	$	85,141	$	185,761	$	270,902

2020
Operating lease cost	$	83,574	$	113,554	$	197,128
Short-term lease cost	229		15,620		15,849
Variable lease cost	21,235		34,259		55,494
Sublease income	(22,064)		—		(22,064)
Total operating lease costs	$	82,974	$	163,433	$	246,407

2019
Operating lease cost	$	63,893	$	96,020	$	159,913
Short-term lease cost	111		14,301		14,412
Variable lease cost	15,610		23,524		39,134
Sublease income	(5,119)		—		(5,119)
Total operating lease costs	$	74,495	$	133,845	$	208,340

Maturities of Operating Lease Liabilities

Maturities of operating lease liabilities as of December 31, 2021 were as follows (in thousands):


	Real Estate Arrangements		Co-location Arrangements
2022	$	80,070	$	97,494
2023	79,583		53,838
2024	73,506		35,532
2025	69,486		23,130
2026	65,314		14,834
Thereafter	416,280		20,640
Total lease payments	784,239		245,468
Less: imputed interest	139,550		7,387
Total lease liabilities	$	644,689	$	238,081

Weighted Average Remaining Lease Terms and Discount Rates

The following table presents the weighted average remaining lease term and discount rate information related to the Company's operating leases as of December 31, 2021 and 2020:


	December 31, 2021				December 31, 2020
	Real Estate Arrangements		Co-location Arrangements		Real Estate Arrangements		Co-location Arrangements
Weighted average remaining lease term (in years)	11.1		3.9		11.8		4.3
Weighted average discount rate	3.6	%	1.3	%	3.4	%	1.8	%

Acquisitions - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands	1 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Jan. 31, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Allocation of the purchase consideration:
Goodwill				$ 2,156,254	$ 1,674,371	$ 1,600,265
Guardicore Ltd.
Business Acquisition [Line Items]
Total purchase consideration	$ 610,439
Allocation of the purchase consideration:
Cash	27,252
Accounts receivable	10,179
Prepaid expenses and other current assets	1,334
Property and equipment	1,221
Operating lease right-of-use assets	4,609
Identifiable intangible assets	123,600
Goodwill	479,110
Deferred tax asset	7,124
Other assets	890
Total assets acquired	655,319
Accounts payable	(1,523)
Accrued liabilities	(7,218)
Deferred revenue	(34,548)
Operating lease liabilities	(1,591)
Total liabilities assumed	(44,880)
Net assets acquired	$ 610,439
Asavie
Business Acquisition [Line Items]
Total purchase consideration		$ 154,952
Allocation of the purchase consideration:
Cash		26,847
Accounts receivable		14,002
Prepaid expenses and other current assets		995
Property and equipment		2,274
Operating lease right-of-use assets		6,104
Identifiable intangible assets		58,070
Goodwill		70,228
Other assets		395
Total assets acquired		178,915
Accounts payable		(951)
Accrued liabilities		(5,926)
Deferred revenue		(3,136)
Operating lease liabilities		(6,104)
Deferred income tax liabilities		(6,965)
Other liabilities		(881)
Total liabilities assumed		(23,963)
Net assets acquired		$ 154,952
Janrain, Inc.
Business Acquisition [Line Items]
Total purchase consideration			$ 123,632
Allocation of the purchase consideration:
Cash			2,223
Accounts receivable			7,318
Prepaid expenses and other current assets			838
Identifiable intangible assets			26,930
Goodwill			92,188
Deferred tax asset			12,622
Other assets			87
Total assets acquired			142,206
Accounts payable			(1,642)
Deferred revenue			(14,336)
Other liabilities			(2,596)
Total liabilities assumed			(18,574)
Net assets acquired			$ 123,632

Income Taxes - Provision for Income Tax Schedule (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current tax (benefit) provision:
Federal	$ 11,824	$ (1,765)	$ (22,704)
State	8,515	5,346	3,835
Foreign	90,026	76,162	71,286
Deferred tax (benefit) provision:
Federal	(33,366)	(19,845)	(13,987)
State	(14,611)	(14,509)	(12,212)
Foreign	(4,358)	(6,023)	4,968
Change in valuation allowance	4,541	6,556	22,164
Total	$ 62,571	$ 45,922	$ 53,350

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Components of Income Before Tax

The components of income before provision for income taxes were as follows for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
U.S.	$	70,300	$	45,074	$	24,253
Foreign	657,921		571,008		508,228
Income before provision for income taxes	$	728,221	$	616,082	$	532,481

Schedule of Provision for Income Tax

The provision for income taxes consisted of the following for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
Current tax (benefit) provision:
Federal	$	11,824	$	(1,765)	$	(22,704)
State	8,515		5,346		3,835
Foreign	90,026		76,162		71,286
Deferred tax (benefit) provision:
Federal	(33,366)		(19,845)		(13,987)
State	(14,611)		(14,509)		(12,212)
Foreign	(4,358)		(6,023)		4,968
Change in valuation allowance	4,541		6,556		22,164
Total	$	62,571	$	45,922	$	53,350

Schedule of Difference Between Effective and Statutory

The Company’s effective tax rate differed from the U.S. federal statutory tax rate as follows for the years ended December 31, 2021, 2020 and 2019:


	2021		2020		2019
U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
State taxes	0.7		1.0		1.0
Stock-based compensation	0.1		(0.6)		0.3
U.S. federal, state and foreign research and development credits	(3.7)		(4.4)		(6.0)
Foreign earnings	(7.3)		(7.7)		(6.1)

Nondeductible (nontaxable) foreign items	—		(0.4)		0.7



Release of uncertain tax position reserve	(1.0)		(0.9)		(5.9)

Intercompany sale of intellectual property	—		0.2		1.9
Valuation allowance	0.6		1.1		4.2
Other	(1.8)		(1.8)		(1.1)
	8.6	%	7.5	%	10.0	%

Net Deferred Tax and Valuation Allowance

The components of the net deferred tax assets and liabilities and the related valuation allowance as of December 31, 2021 and 2020 were as follows (in thousands):


	2021		2020
Accrued bonus	$	26,261	$	25,480
Deferred revenue	6,683		11,146

Operating lease liability	133,298		141,212
Stock-based compensation	21,507		23,629
NOLs	53,088		25,255

Tax credit carryforwards	88,710		110,254

Convertible senior notes interest	18,552		20,953
Depreciation and amortization	85,438		—
Other	15,679		11,531
Deferred tax assets	449,216		369,460
Depreciation and amortization	—		(6,974)

Acquired intangible assets	(86,567)		(59,128)

Operating lease right-of-use asset	(124,833)		(127,524)
Deferred commissions	(13,468)		(14,952)
Internal-use software development costs capitalized	(59,837)		(58,820)

Deferred tax liabilities	(284,705)		(267,398)
Valuation allowance	(37,143)		(32,602)
Net deferred tax assets	$	127,368	$	69,460

Schedule of Operating Loss Carryforwards

The table below summarizes the Company's NOL and tax credit carryforwards in U.S. federal, state and foreign jurisdictions as of December 31, 2021 and 2020 (in thousands, except years):


	2021		2020		Expirations at Various Dates Through:
NOL carryforwards:
Federal	$	44,000	$	59,200	2037
State	15,500		24,800		2041
Foreign	180,100		40,800		2035
Federal and state research and development tax credit and other credit carryforwards	113,500		132,800		2037

Unrecognized Tax Benefits

The following is a roll forward of the Company’s unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
Balance at beginning of year	$	24,105	$	27,359	$	64,892
Gross increases – tax positions of prior periods	4,293		2,539		74
Gross increases – current period tax positions	3,607		1,946		2,006
Gross decreases – tax positions of prior periods	(816)		(3,540)		(5,201)
Gross decreases – lapse of applicable statute of limitations	(8,626)		(4,199)		(28,672)
Gross decreases – settlements	—		—		(5,740)
Balance at end of year	$	22,563	$	24,105	$	27,359

Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Debt

Convertible Notes – Due 2027

In August 2019, the Company issued $1,150.0 million in par value of convertible senior notes due 2027 (the "2027 Notes"). The 2027 Notes are senior unsecured obligations of the Company, bear regular interest of 0.375%, payable semi-annually in arrears on March 1 and September 1 of each year, and mature on September 1, 2027, unless repurchased or converted in accordance with their terms prior to maturity.

At their option, holders may convert their 2027 Notes prior to the close of business on the business day immediately preceding May 1, 2027, only under the following circumstances:

•during any calendar quarter commencing after the calendar quarter ended December 31, 2019 (and only during such calendar quarter), if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

•during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of 2027 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the conversion rate on each such trading day; or

•upon the occurrence of specified corporate events.

On or after May 1, 2027, holders may convert all or any portion of their 2027 Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date.

In December 2021, the Company made an irrevocable election to settle the principal amount of the 2027 Notes only in cash. Accordingly, upon conversion, the Company will pay the principal amount in cash and will pay, or deliver, as the case may be, any amount in excess of the principal amount in cash, shares of common stock or a combination of cash and shares of the Company stock, at the Company's election. Prior to this election, upon conversion, the Company, could have elected to deliver to holders cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock for the principal amount.

The initial conversion rate is 8.6073 shares of the Company's common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $116.18 per share, subject to adjustments in certain events, and represents a potential conversion into 9.9 million shares.

In accounting for the issuance of the 2027 Notes, the Company separated the 2027 Notes into liability and equity components. The carrying cost of the liability component was calculated by measuring the fair value of a similar debt obligation that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 2027 Notes. The difference between the principal amount of the 2027 Notes and the proceeds allocated to the liability component (“debt discount”) is amortized to interest expense using the effective interest method over the term of the 2027 Notes. The equity component is recorded in additional paid-in capital in the consolidated balance sheet and will not be remeasured as long as it continues to meet the conditions for equity classification.

In accounting for the transaction costs related to the issuance of the 2027 Notes, the Company allocated the total transaction costs incurred to the liability and equity components based on their relative values. Transaction costs attributable to the liability component are being amortized to interest expense over the term of the 2027 Notes, and transaction costs attributable to the equity component are netted against the equity component of the 2027 Notes in stockholders’ equity.

The 2027 Notes consisted of the following components as of December 31, 2021 and 2020 (in thousands):


	December 31, 2021		December 31, 2020
Liability component:
Principal	$	1,150,000	$	1,150,000
Less: debt discount and issuance costs, net of amortization	(169,030)		(196,359)
Net carrying amount	$	980,970	$	953,641

Equity component:	$	220,529	$	220,529

The estimated fair value of the 2027 Notes at December 31, 2021 and 2020 was $1,359.3 million and $1,277.8 million, respectively. The fair value was determined based on the quoted price of the 2027 Notes in an inactive market on the last trading day of the reporting period and has been classified as Level 2 within the fair value hierarchy. Based on the closing price of the Company's common stock of $117.04 on December 31, 2021, the value of the 2027 Notes if converted to common stock was more than the principal amount of $1,150.0 million.

The Company used $100.0 million of the proceeds from the offering to repurchase shares of its common stock, concurrent with the issuance of the 2027 Notes. The repurchase was made in accordance with a share repurchase program previously approved by the board of directors. Additionally, $127.1 million of the proceeds was used for the net cost of the convertible note hedge and warrant transactions. The remaining net proceeds are intended to be used for share repurchases, working capital and general corporate purposes, including potential acquisitions and other strategic transactions.

Note Hedge

To minimize the impact of potential dilution upon conversion of the 2027 Notes, the Company entered into convertible note hedge transactions with respect to its common stock in August 2019. The Company paid $312.2 million for the note hedge transactions. The note hedge transactions cover approximately 9.9 million shares of the Company’s common stock at a strike price that corresponds to the initial conversion price of the 2027 Notes, also subject to adjustment, and are exercisable upon conversion of the 2027 Notes. The Company determined that the note hedge meets the definition of a derivative and is classified in stockholders’ equity, as the note hedge is indexed to the Company's common stock, and the Company, at its election, may pay or deliver to holders cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock. The Company recorded the purchase of the hedge as a decrease to additional paid-in capital. The Company does not recognize subsequent changes in fair value of the note hedge in its consolidated financial statements.

Warrants

Separately, in August 2019, the Company entered into warrant transactions, whereby the Company sold warrants to acquire, subject to anti-dilution adjustments, up to 9.9 million shares of the Company’s common stock at a strike price of approximately $178.74 per share. The Company received aggregate proceeds of $185.2 million from the sale of the warrants. The convertible note hedge and warrant transactions will generally have the effect of increasing the conversion price of the 2027 Notes to approximately $178.74 per share. The Company determined that the warrants meet the definition of a derivative and are classified in stockholders’ equity, as the warrants are indexed to the Company's common stock, and the Company, at its election, may pay or deliver to holders cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock. The Company recorded the proceeds from issuance of the warrants as an increase to additional paid-in capital. The Company does not recognize subsequent changes in fair value of the warrants in its consolidated financial statements.

Convertible Notes – Due 2025

In May 2018, the Company issued $1,150.0 million in par value of convertible senior notes due 2025 (the "2025 Notes"). The 2025 Notes are senior unsecured obligations of the Company, bear regular interest of 0.125%, payable semi-annually on May 1 and November 1 of each year, and mature on May 1, 2025, unless repurchased or converted prior to maturity.

At their option, holders may convert their 2025 Notes prior to the close of business on the business day immediately preceding January 1, 2025, only under the following circumstances:

•during any calendar quarter commencing after the calendar quarter ended June 30, 2018 (and only during such calendar quarter), if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

•during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of 2025 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the conversion rate on each such trading day; or

•upon the occurrence of specified corporate events.

On or after January 1, 2025, holders may convert all or any portion of their 2025 Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, regardless of the foregoing circumstances.

In December 2021, the Company made an irrevocable election to settle the principal amount of the 2025 Notes only in cash. Accordingly, upon conversion, the Company will pay the principal amount in cash and will pay, or deliver, as the case may be, any amount in excess of the principal amount in cash, shares of common stock or a combination of cash and shares of the Company stock, at the Company's election. Prior to this election, upon conversion, the Company, could have elected to deliver to holders cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock for the principal amount.

The initial conversion rate is 10.5150 shares of the Company's common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $95.10 per share, subject to adjustments in certain events, and represents a potential conversion into 12.1 million shares.

In accounting for the issuance of the 2025 Notes, the Company separated the 2025 Notes into liability and equity components. The carrying cost of the liability component was calculated by measuring the fair value of a similar debt obligation that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 2025 Notes. The difference between the principal amount of the 2025 Notes and the proceeds allocated to the liability component (“debt discount”) is amortized to interest expense using the effective interest method over the term of the 2025 Notes. The equity component is recorded in additional paid-in capital in the consolidated balance sheet and will not be remeasured as long as it continues to meet the conditions for equity classification.

In accounting for the transaction costs related to the issuance of the 2025 Notes, the Company allocated the total transaction costs incurred to the liability and equity components based on their relative values. Transaction costs attributable to the liability component are being amortized to interest expense over the term of the 2025 Notes, and transaction costs attributable to the equity component are netted against the equity component of the 2025 Notes in stockholders’ equity.

The 2025 Notes consisted of the following components as of December 31, 2021 and 2020 (in thousands):


	December 31, 2021		December 31, 2020
Liability component:
Principal	$	1,150,000	$	1,150,000
Less: debt discount and issuance costs, net of amortization	(154,803)		(196,934)
Net carrying amount	$	995,197	$	953,066

Equity component:	$	285,225	$	285,225

The estimated fair value of the 2025 Notes at December 31, 2021 and 2020 was $1,510.4 million and $1,422.8 million, respectively. The fair value was determined based on the quoted price of the 2025 Notes in an inactive market on the last trading day of the reporting period and has been classified as Level 2 within the fair value hierarchy. Based on the closing price of the Company's common stock of $117.04 on December 31, 2021, the value of the 2025 Notes if converted to common stock was more than the principal amount of $1,150.0 million.

The Company used $46.2 million of the proceeds from the offering to repurchase shares of its common stock, concurrent with the issuance of the 2025 Notes. The repurchase was made in accordance with a share repurchase program previously approved by the board of directors. Additionally, $141.8 million of the proceeds was used for the net cost of convertible note hedge and warrant transactions. The Company also used a portion of the net proceeds to repay at maturity the $690.0 million in par value of convertible senior notes due in 2019. The remaining net proceeds are intended to be used for share repurchases, working capital and general corporate purposes, including potential acquisitions and other strategic transactions.

Note Hedge

To minimize the impact of potential dilution upon conversion of the 2025 Notes, the Company entered into convertible note hedge transactions with respect to its common stock in May 2018. The Company paid $261.7 million for the note hedge transactions. The note hedge transactions cover approximately 12.1 million shares of the Company’s common stock at a strike price that corresponds to the initial conversion price of the 2025 Notes, also subject to adjustment, and are exercisable upon conversion of the 2025 Notes. The Company determined that the note hedge meets the definition of a derivative and is classified in stockholders’ equity, as the note hedge is indexed to the Company's common stock, and the Company, at its election, may pay or deliver to holders cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock. The Company recorded the purchase of the hedge as a decrease to additional paid-in capital. The Company does not recognize subsequent changes in fair value of the note hedge in its consolidated financial statements.

Warrants

Separately, in May 2018, the Company entered into warrant transactions, whereby the Company sold warrants to acquire, subject to anti-dilution adjustments, up to 12.1 million shares of the Company’s common stock at a strike price of approximately $149.18 per share. The Company received aggregate proceeds of $119.9 million from the sale of the warrants. The convertible note hedge and warrant transactions will generally have the effect of increasing the conversion price of the 2025 Notes to approximately $149.18 per share. The Company determined that the warrants meet the definition of a derivative and are classified in stockholders’ equity, as the warrants are indexed to the Company's common stock, and the Company, at its election, may pay or deliver to holders cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock. The Company recorded the proceeds from issuance of the warrants as an increase to additional paid-in capital. The Company does not recognize subsequent changes in fair value of the warrants in its consolidated financial statements.

Convertible Notes – Due 2019

In February 2014, the Company issued $690.0 million in par value of convertible senior notes due 2019 (the "2019 Notes"). The 2019 Notes were senior unsecured obligations of the Company and did not bear regular interest. The 2019 Notes matured and were repaid in full on February 15, 2019 as no repurchases or conversions occurred prior to maturity.

Revolving Credit Facility

In May 2018, the Company entered into a $500.0 million five-year, revolving credit agreement (the “Credit Agreement”). Borrowings under the Credit Agreement may be used to finance working capital needs and for general corporate purposes. The Credit Agreement provides for an initial $500.0 million in revolving loans. Under specified circumstances, the facility can be increased to up to $1.0 billion in aggregate principal amount. The Credit Agreement expires in May 2023.

Borrowings under the Credit Agreement bear interest, at the Company's option, at a base rate plus a spread of 0.00% to 0.25% or an adjusted LIBOR rate plus a spread of 0.875% to 1.25%, in each case with such spread being determined based on the Company's consolidated leverage ratio specified in the Credit Agreement. Regardless of what amounts, if any, are outstanding under the Credit Agreement, the Company is also obligated to pay an ongoing commitment fee on undrawn amounts at a rate of 0.075% to 0.15%, with such rate being based on the Company's consolidated leverage ratio specified in the Credit Agreement.

The Credit Agreement contains customary representations and warranties, affirmative and negative covenants and events of default. Principal covenants include a maximum consolidated leverage ratio and a minimum consolidated interest coverage ratio. There were no outstanding borrowings under the Credit Agreement as of December 31, 2021.

Interest Expense

The 2027 Notes bear interest at a fixed rate of 0.375%. The interest is payable semi-annually on March 1 and September 1 of each year. The 2027 Notes have an effective interest rate of 3.1% attributable to the conversion feature. The 2025 Notes bear interest at a fixed rate of 0.125%. The interest is payable semi-annually on May 1 and November 1 of each year. The 2025 Notes have an effective interest rate of 4.26% attributable to the conversion feature. The 2019 Notes did not bear regular interest, but had an effective interest rate of 3.2% attributable to the conversion feature. The Company is also obligated to pay ongoing commitment fees under the terms of the Credit Agreement. The following table sets forth total interest expense included in the consolidated statements of income for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
Amortization of debt discount and issuance costs	$	69,697	$	67,153	$	52,059
Coupon interest payable on 2025 Notes	1,437		1,437		1,436
Coupon interest payable on 2027 Notes	4,313		4,312		1,557
Revolving credit facility contractual interest expense	557		548		513
Capitalization of interest expense	(3,672)		(4,330)		(6,201)
Total interest expense	$	72,332	$	69,120	$	49,364

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Dec. 31, 2021	Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]
Convertible senior notes		$ 1,976,167	$ 1,906,707
Deferred income tax assets		168,342	106,918
Additional paid-in capital		$ 3,340,822	$ 3,664,820
Subsequent Event \| Cumulative Effect, Period of Adoption, Adjustment
Schedule of Equity Method Investments [Line Items]
Convertible senior notes	$ 304,700
Deferred income tax assets	74,000
Additional paid-in capital	$ (375,400)

Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

The Company has entered into various operating lease agreements for its offices and co-location assets and related equipment. The Company has also entered into sublease agreements with tenants of various offices previously vacated by the Company. These operating leases have lease periods expiring between 2022 and 2034. The following table is a summary of the Company’s operating lease costs for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	Real Estate Arrangements		Co-location Arrangements		Total
2021
Operating lease cost	$	84,100	$	136,673	$	220,773
Short-term lease cost	58		17,660		17,718
Variable lease cost	22,016		31,428		53,444
Sublease income	(21,033)		—		(21,033)
Total operating lease costs	$	85,141	$	185,761	$	270,902

2020
Operating lease cost	$	83,574	$	113,554	$	197,128
Short-term lease cost	229		15,620		15,849
Variable lease cost	21,235		34,259		55,494
Sublease income	(22,064)		—		(22,064)
Total operating lease costs	$	82,974	$	163,433	$	246,407

2019
Operating lease cost	$	63,893	$	96,020	$	159,913
Short-term lease cost	111		14,301		14,412
Variable lease cost	15,610		23,524		39,134
Sublease income	(5,119)		—		(5,119)
Total operating lease costs	$	74,495	$	133,845	$	208,340

Lease costs for real estate arrangements are included in general and administrative expenses in the consolidated statements of income. Lease costs for co-location arrangements are primarily included in cost of revenue.

The following table presents the weighted average remaining lease term and discount rate information related to the Company's operating leases as of December 31, 2021 and 2020:


	December 31, 2021				December 31, 2020
	Real Estate Arrangements		Co-location Arrangements		Real Estate Arrangements		Co-location Arrangements
Weighted average remaining lease term (in years)	11.1		3.9		11.8		4.3
Weighted average discount rate	3.6	%	1.3	%	3.4	%	1.8	%

Maturities of operating lease liabilities as of December 31, 2021 were as follows (in thousands):


	Real Estate Arrangements		Co-location Arrangements
2022	$	80,070	$	97,494
2023	79,583		53,838
2024	73,506		35,532
2025	69,486		23,130
2026	65,314		14,834
Thereafter	416,280		20,640
Total lease payments	784,239		245,468
Less: imputed interest	139,550		7,387
Total lease liabilities	$	644,689	$	238,081

As of December 31, 2021, the Company had additional operating leases, primarily for co-location arrangements, that had not yet commenced of $67.2 million, which will commence in 2022, with lease terms of one year to seven years. The table above excludes approximately $196.4 million of future sublease income that is expected to be recognized through 2034.

As of December 31, 2021, the Company had outstanding letters of credit in the amount of $5.7 million, primarily related to operating leases. The letters of credit remain in effect until the Company fulfills its obligations under these leases or as such obligations expire under the terms of the letters of credit.

Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Dec. 31, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Loss


	Foreign Currency Translation		Net Unrealized Gains (Losses) on Investments		Total
Balance as of January 1, 2020	$	(52,924)	$	7,780	$	(45,144)
Other comprehensive income	19,629		5,314		24,943
Balance as of December 31, 2020	(33,295)		13,094		(20,201)
Other comprehensive loss	(38,514)		(10,390)		(48,904)
Balance as of December 31, 2021	$	(71,809)	$	2,704	$	(69,105)

Income Taxes - Schedule of Deferred Tax and Related Valuation Allowance (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Accrued bonus	$ 26,261	$ 25,480
Deferred revenue	6,683	11,146
Operating lease liability	133,298	141,212
Stock-based compensation	21,507	23,629
NOLs	53,088	25,255
Tax credit carryforwards	88,710	110,254
Convertible senior notes interest	18,552	20,953
Depreciation and amortization	85,438	0
Other	15,679	11,531
Deferred tax assets	449,216	369,460
Depreciation and amortization	0	(6,974)
Acquired intangible assets	(86,567)	(59,128)
Operating lease right-of-use asset	(124,833)	(127,524)
Deferred commissions	(13,468)	(14,952)
Internal-use software development costs capitalized	(59,837)	(58,820)
Deferred tax liabilities	(284,705)	(267,398)
Valuation allowance	(37,143)	(32,602)
Net deferred tax assets	$ 127,368	$ 69,460

Prepaid Expenses and Other Current Assets

12 Months Ended

Dec. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following as of December 31, 2021 and 2020 (in thousands):


	December 31, 2021		December 31, 2020
Prepaid income taxes	$	32,021	$	30,682
Prepaid sales and other taxes	28,300		24,034
Prepaid equipment and software maintenance	10,661		15,526
Deferred commissions	43,562		54,516
Other prepaid expenses	35,109		26,187
Other current assets	16,660		20,461
Total	$	166,313	$	171,406

Incremental Costs to Obtain a Contract with a Customer

The following table summarizes the deferred costs associated with obtaining customer contracts, specifically commission and incentive payments, as of December 31, 2021 and 2020 (in thousands):


	December 31, 2021		December 31, 2020
Deferred costs included in prepaid and other current assets	$	43,562	$	54,516
Deferred costs included in other assets	30,436		23,200
Total deferred costs	$	73,998	$	77,716

The following table summarizes additional information related to incremental costs to obtain a contract with a customer for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
Amortization expense related to deferred costs	$	58,433	$	61,682	$	44,266
Incremental costs capitalized	56,509		67,058		54,514

Amortization expense related to deferred costs is primarily included in sales and marketing expense in the consolidated statements of income.

Income Taxes - Schedule of NOL Carryforwards (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Operating Loss Carryforwards [Line Items]
Federal and state research and development tax credit and other credit carryforwards	$ 113,500	$ 132,800
Maximum
Operating Loss Carryforwards [Line Items]
Expirations at Various Dates Through:	2037	2037
Federal
Operating Loss Carryforwards [Line Items]
NOL carryforwards:	$ 44,000	$ 59,200
Federal \| Maximum
Operating Loss Carryforwards [Line Items]
Expirations at Various Dates Through:	2037	2037
State
Operating Loss Carryforwards [Line Items]
NOL carryforwards:	$ 15,500	$ 24,800
State \| Maximum
Operating Loss Carryforwards [Line Items]
Expirations at Various Dates Through:	2041	2041
Foreign
Operating Loss Carryforwards [Line Items]
NOL carryforwards:	$ 180,100	$ 40,800
Foreign \| Maximum
Operating Loss Carryforwards [Line Items]
Expirations at Various Dates Through:	2035	2035

Restructuring (Tables)

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Accrual


	Employee Severance and Related Benefits
Balance January 1, 2019	$	10,508
Costs incurred	12,455
Cash disbursements	(17,294)

Translation adjustments and other	38
Balance December 31, 2019	5,707
Costs incurred	26,332
Cash disbursements	(10,118)

Translation adjustments and other	130
Balance December 31, 2020	22,051
Costs incurred	6,600
Cash disbursements	(27,095)

Translation adjustments and other	(368)
Balance December 31, 2021	$	1,188

Net Income per Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Net Income per Share

Net Income per ShareBasic net income per share is computed using the weighted average number of common shares outstanding during the applicable period. Diluted net income per share is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of potential common stock. Potential common stock consists of shares issuable pursuant to stock options, RSUs, DSUs, convertible senior notes and warrants issued by the Company. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method.


	2021		2020		2019
Numerator:
Net income	$	651,642	$	557,054	$	478,035
Denominator:
Shares used for basic net income per share	162,665		162,490		162,706
Effect of dilutive securities:
Stock options	21		31		68
RSUs and DSUs	1,518		1,819		1,799
Convertible senior notes	1,600		873		—
Warrants related to issuance of convertible senior notes	—		—		—
Shares used for diluted net income per share	165,804		165,213		164,573
Basic net income per share	$	4.01	$	3.43	$	2.94
Diluted net income per share	$	3.93	$	3.37	$	2.90

For the years ended December 31, 2021, 2020 and 2019, certain potential outstanding shares from stock options, service-based RSUs, convertible notes and warrants were excluded from the computation of diluted net income per share because the effect of including these items was anti-dilutive. Additionally, certain performance-based RSUs were excluded from the computation of diluted net income per share because the underlying performance conditions for such RSUs had not been met as of these dates. The number of potentially outstanding shares excluded from the computation of diluted net income per share for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021	2020	2019

Service-based RSUs	776	591	763
Market-and performance-based RSUs	1,199	1,409	1,349
Convertible senior notes	9,898	12,922	21,991
Warrants related to issuance of convertible senior notes	21,991	21,991	21,991
Total shares excluded from computation	33,864	36,913	46,094

Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	$ 677,323	$ 661,874
Allowance for current expected credit losses and other reserves	(1,397)	(1,822)	$ (1,880)	$ (1,534)
Accounts receivable, net	675,926	660,052
Trade accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	501,959	473,474
Unbilled accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	$ 175,364	$ 188,400

Prepaid Expenses and Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of prepaid expense and other current assets

Prepaid expenses and other current assets consisted of the following as of December 31, 2021 and 2020 (in thousands):


	December 31, 2021		December 31, 2020
Prepaid income taxes	$	32,021	$	30,682
Prepaid sales and other taxes	28,300		24,034
Prepaid equipment and software maintenance	10,661		15,526
Deferred commissions	43,562		54,516
Other prepaid expenses	35,109		26,187
Other current assets	16,660		20,461
Total	$	166,313	$	171,406

Schedule of deferred costs associated with obtaining customer contracts

The following table summarizes the deferred costs associated with obtaining customer contracts, specifically commission and incentive payments, as of December 31, 2021 and 2020 (in thousands):


	December 31, 2021		December 31, 2020
Deferred costs included in prepaid and other current assets	$	43,562	$	54,516
Deferred costs included in other assets	30,436		23,200
Total deferred costs	$	73,998	$	77,716

The following table summarizes additional information related to incremental costs to obtain a contract with a customer for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
Amortization expense related to deferred costs	$	58,433	$	61,682	$	44,266
Incremental costs capitalized	56,509		67,058		54,514

Prepaid Expenses and Other Current Assets - Prepaid Expenses And Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid income taxes	$ 32,021	$ 30,682
Prepaid sales and other taxes	28,300	24,034
Prepaid equipment and software maintenance	10,661	15,526
Deferred commissions	43,562	54,516
Other prepaid expenses	35,109	26,187
Other current assets	16,660	20,461
Total	$ 166,313	$ 171,406

Nature of Business and Basis of Presentation	12 Months Ended
Nature of Business and Basis of Presentation	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Basis of Presentation	Nature of Business and Basis of Presentation Akamai Technologies, Inc. (the “Company”) provides solutions to power and protect digital experiences. Its globally-distributed platform comprises more than 350,000 servers across more than 130 countries. The Company was incorporated in Delaware in 1998 and is headquartered in Cambridge, Massachusetts. The Company is currently organized and operates as one reportable and operating segment: providing solutions to power and protect digital experiences. The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in the accompanying consolidated financial statements.

Goodwill and Acquired Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of acquired intangible assets	$ 48,019	$ 42,049	$ 38,581
2022	48,100
2023	43,500
2024	38,900
2025	35,800
2026	$ 31,000

Segment and Geographic Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic InformationThe Company’s chief operating decision-maker is the chief executive officer and the executive management team. As of December 31, 2021, the Company is currently organized and operates as one reportable and operating segment: providing solutions to power and protect digital experiences. The Company is not organized by market and is managed and operated as one business. A single management team that reports to the chief executive officer comprehensively manages the entire business. The Company does not operate any material separate lines of business or separate business entities with respect to its services. Accordingly, the Company does not accumulate discrete financial information with respect to separate entities and does not have separate operating or reportable segments.

The Company deploys its servers into networks worldwide. The following table summarizes net property and equipment, excluding internal-use software and operating lease right-of-use assets, located in the U.S. and foreign locations, as of December 31, 2021 and 2020 (in thousands):


	December 31, 2021		December 31, 2020
Property and equipment, net, excluding internal-use software, located in the U.S.	$	568,040	$	572,391
Property and equipment, net, excluding internal-use software, located in foreign locations	510,695		487,174
Operating lease right-of-use assets located in the U.S.	625,424		611,959
Operating lease right-of-use assets located in foreign locations	190,330		181,986

The Company sells its services and licenses through a sales force located both domestically and abroad. Revenue derived from operations outside of the U.S. is determined based on the country in which the sale originated. Other than the U.S., no single country accounted for 10% or more of the Company’s total revenue for any reported period. The following table summarizes revenue derived from operations outside of the U.S. for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
Revenue derived from operations outside of the U.S.	$	1,623,715	$	1,420,714	$	1,199,406

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 280
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table summarizes revenue by geography included in the Company’s consolidated statements of income for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
U.S.	$	1,837,508	$	1,777,435	$	1,694,211
International	1,623,715		1,420,714		1,199,406
Total revenue	$	3,461,223	$	3,198,149	$	2,893,617

The following table summarizes revenue by product group included in the Company’s consolidated statements of income for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	2021		2020		2019
Security Technology Group	$	1,334,836	$	1,061,622	$	848,733
Edge Technology Group	2,126,387		2,136,527		2,044,884
Total revenue	$	3,461,223	$	3,198,149	$	2,893,617

Stock-Based Compensation - Schedule of Restricted Stock Units by Type (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2021 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total restricted stock units vesting conditions granted (in shares)	3,299
Service-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units vesting conditions granted (in shares)	2,818
Market-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted with performance based vesting (in shares)	85
Market-and performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted with performance based vesting (in shares)	396

Stockholders' Equity (Details) - USD ($) $ in Thousands, shares in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Oct. 31, 2021	Nov. 30, 2018
Class of Stock [Line Items]
Amount of common stock repurchases authorized				$ 1,800,000	$ 1,100,000
Value of shares repurchased during period	$ 522,255	$ 193,588	$ 334,519
Stock repurchase program, authorized amount, expired	$ 49,600
Common Stock
Class of Stock [Line Items]
Repurchases of common stock (in shares)	4.7	2.0	4.0
Value of shares repurchased during period	$ 522,300	$ 193,600	$ 334,500

Nature of Business and Basis of Presentation (Details) server in Thousands	12 Months Ended
	Dec. 31, 2021 server country segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of servers (more than) \| server	350
Number of countries with networks \| country	130
Number of operating segments \| segment	1

Employee Benefit Plan (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plan (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Compensation Related Costs [Abstract]
Contributions by employer	$ 17.7	$ 17.5	$ 16.6

- Definition

Amount of contribution received by defined benefit plan from employer which increases plan assets.

+ References + Details

Fair Value Measurements - Marketable Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 1,610,775	$ 2,114,541
Gross unrealized gains	1,194	9,824
Gross unrealized losses	(5,580)	(339)
Aggregate Fair Value	1,606,389	2,124,026
Short-Term Marketable Securities	540,574	744,290
Long-Term Marketable Securities	1,065,815	1,379,736
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	25,056	46,931
Gross unrealized gains	0	13
Gross unrealized losses	(24)	(8)
Aggregate Fair Value	25,032	46,936
Short-Term Marketable Securities	25,032	46,936
Long-Term Marketable Securities	0	0
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,268,991	1,628,462
Gross unrealized gains	1,191	9,482
Gross unrealized losses	(4,275)	(262)
Aggregate Fair Value	1,265,907	1,637,682
Short-Term Marketable Securities	459,012	607,403
Long-Term Marketable Securities	806,895	1,030,279
Municipal securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		3,495
Gross unrealized gains		0
Gross unrealized losses		(6)
Aggregate Fair Value		3,489
Short-Term Marketable Securities		0
Long-Term Marketable Securities		3,489
U.S. government agency obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	316,728	435,653
Gross unrealized gains	3	329
Gross unrealized losses	(1,281)	(63)
Aggregate Fair Value	315,450	435,919
Short-Term Marketable Securities	56,530	89,951
Long-Term Marketable Securities	$ 258,920	$ 345,968

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax unrecognized compensation cost	$ 315.5
Weighted average period for recognizing compensation cost (in years)	1 year 9 months 18 days
Closing stock price (in dollars per share)	$ 117.04
In the money options exercisable (in shares)	1,315
Capitalized Internal Use Software
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional stock based compensation	$ 32.4	$ 29.6	$ 30.6
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	4 years
Expiration period	10 years
Total pre-tax intrinsic value of options exercised	$ 0.6	$ 1.0	$ 3.9
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value of equity instruments other than options granted (in dollars per share)	$ 36.17	$ 32.30	$ 20.90
Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value of equity instruments other than options granted (in dollars per share)	$ 114.56	$ 100.58	$ 76.62
Each DSU receives this number of shares of common stock upon vesting (in whole numbers)	1
Holder elect to defer vested shares period, minimum (in years)	1 year
Holder elect to defer vested shares period, maximum (in years)	10 years
The amount typically vested by anniversary grant date (percentage)	100.00%
Director's minimum period of service before vesting accelerates (in years)	1 year
Total pre-tax intrinsic value end of year	$ 4.1	$ 0.9	$ 7.7
Total fair value of vested and distributed	$ 2.7	$ 0.7	$ 4.9
Unvested deferred stock units (in shares)	20,990
Aggregate intrinsic value	$ 2.5
Weighted average contractual remaining life (in years)	4 months 24 days
Deferred Stock Units \| Director Vesting Acceleration
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	100.00%
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value of equity instruments other than options granted (in dollars per share)	$ 99.09	$ 92.42	$ 72.30
Total pre-tax intrinsic value end of year	$ 226.4	$ 192.5	$ 189.4
Total fair value of vested and distributed	233.0	$ 198.9	$ 195.5
Aggregate intrinsic value	$ 513.9
Weighted average contractual remaining life (in years)	1 year 8 months 12 days
Each RSU receives this number of shares of common stock upon vesting	1
Restricted stock unit vesting provision, minimum (in years)	3 years
Restricted stock unit vesting provision, maximum (in years)	4 years
Number of equity instruments other than options unvested (in shares)	4,400,000
2013 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock approved for issuance under plan (in shares)	21,500,000
Common stock available for grant (in shares)	7,000,000
2009 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for grant (in shares)	3,800,000
1999 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum amount of shares available for issuance (in shares)	1,500,000
Aggregate amount of shares available, maximum (in shares)	20,000,000
Discount on fair market value for purchase of stock (in percentage)	15.00%
Share purchase interval term (in months)	6 months
Issuance of common stock under employee stock purchase plan (in shares)	600,000	700,000	900,000
Weighted average purchase price (in dollars per share)	$ 92.05	$ 80.71	$ 61.04
Total cash proceeds from shares purchased	$ 59.7	$ 58.4	$ 53.7
Amount withheld from employees for future purchases	$ 5.8

Leases - Lease Term and Discount Rate (Details)	Dec. 31, 2021	Dec. 31, 2020
Real Estate Arrangements
Lessee, Lease, Description [Line Items]
Weighted average remaining lease term (in years)	11 years 1 month 6 days	11 years 9 months 18 days
Weighted average discount rate	3.60%	3.40%
Co-location Arrangements
Lessee, Lease, Description [Line Items]
Weighted average remaining lease term (in years)	3 years 10 months 24 days	4 years 3 months 18 days
Weighted average discount rate	1.30%	1.80%

Accounts Receivable - Activity in Allowance for Expected Credit Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 1,822	$ 1,880	$ 1,534
Charges to income from operations	4,576	12,347	5,116
Collections from customers previously reserved and other	(5,001)	(12,405)	(4,770)
Ending balance	$ 1,397	$ 1,822	$ 1,880

Fair Value Measurements - Narrative (Details) - Corporate bonds $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($)
Debt Securities, Available-for-sale [Line Items]
Available-for-sale marketable securities, continuous unrealized loss position for more than 12 months	$ 38.2
Unrealized loss from available-for-sale marketable securities	$ 0.2

Stock-Based Compensation - Schedule of Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) $ / shares shares
Shares
Outstanding (in shares) \| shares	6
Exercised (in shares) \| shares	(5)
Outstanding (in shares) \| shares	1
Exercisable (in shares) \| shares	1
Vested or expected to vest (in shares) \| shares	1
Weighted Average Exercise Price
Outstanding (in dollars per share) \| $ / shares	$ 11.60
Exercised (in dollars per share) \| $ / shares	3.94
Outstanding (in dollars per share) \| $ / shares	41.08
Exercisable (in dollars per share) \| $ / shares	41.08
Vested or expected to vest (in dollars per share) \| $ / shares	$ 41.08
Weighted Average Remaining Contractual Term & Aggregate Intrinsic Value
Outstanding	1 year 6 months 18 days
Exercisable	1 year 6 months 18 days
Vested or expected to vest	1 year 6 months 18 days
Outstanding \| $	$ 100
Exercisable \| $	100
Vested or expected to vest \| $	$ 100

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Cash Flows [Abstract]
Income tax refund received	$ 14,808	$ 17,491	$ 3,731

Property and Equipment - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Property, software and equipment depreciation, amortization expense	$ 502.6	$ 436.3	$ 402.1
Capitalization of stock-based compensation	35.0	38.0	$ 35.9
Disposal of property plant and equipment	283.4	279.9
Write off of internal-use software	$ 3.4	$ 0.8

Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 3,461,223	$ 3,198,149	$ 2,893,617
Security Technology Group
Disaggregation of Revenue [Line Items]
Revenue	1,334,836	1,061,622	848,733
Edge Technology Group
Disaggregation of Revenue [Line Items]
Revenue	2,126,387	2,136,527	2,044,884
U.S.
Disaggregation of Revenue [Line Items]
Revenue	1,837,508	1,777,435	1,694,211
International
Disaggregation of Revenue [Line Items]
Revenue	$ 1,623,715	$ 1,420,714	$ 1,199,406

- Definition

+ References

+ Details

Leases - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Operating lease cost	$ 220,773	$ 197,128	$ 159,913
Short-term lease cost	17,718	15,849	14,412
Variable lease cost	53,444	55,494	39,134
Sublease income	(21,033)	(22,064)	(5,119)
Total operating lease costs	270,902	246,407	208,340
Real Estate Arrangements
Lessee, Lease, Description [Line Items]
Operating lease cost	84,100	83,574	63,893
Short-term lease cost	58	229	111
Variable lease cost	22,016	21,235	15,610
Sublease income	(21,033)	(22,064)	(5,119)
Total operating lease costs	85,141	82,974	74,495
Co-location Arrangements
Lessee, Lease, Description [Line Items]
Operating lease cost	136,673	113,554	96,020
Short-term lease cost	17,660	15,620	14,301
Variable lease cost	31,428	34,259	23,524
Sublease income	0	0	0
Total operating lease costs	$ 185,761	$ 163,433	$ 133,845

Property and Equipment

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment consisted of the following as of December 31, 2021 and 2020 (in thousands, except years):


	December 31, 2021		December 31, 2020		Estimated Useful Life (in years)
Computer and networking equipment	$	1,981,775	$	1,847,717	3-7
Purchased software	89,347		95,662		3-10
Furniture and fixtures	71,381		71,119		1-7
Office equipment	42,616		40,235		3-5
Leasehold improvements	227,358		230,423		1-15
Internal-use software	1,382,099		1,234,934		2-7
Property and equipment, gross	3,794,576		3,520,090
Accumulated depreciation and amortization	(2,260,247)		(2,041,818)
Property and equipment, net	$	1,534,329	$	1,478,272

Depreciation and amortization expense on property and equipment and capitalized internal-use software for the years ended December 31, 2021, 2020 and 2019 was $502.6 million, $436.3 million and $402.1 million, respectively. During the years ended December 31, 2021, 2020 and 2019, the Company capitalized $35.0 million, $38.0 million and $35.9 million, respectively, of stock-based compensation related to employees who developed and enhanced internal-use software applications.

During the years ended December 31, 2021 and 2020, the Company wrote off $283.4 million and $279.9 million, respectively, of property and equipment, gross, along with the associated accumulated depreciation and amortization. The write-offs were primarily related to computer and networking equipment and internal-use software no longer in use. These assets had been substantially depreciated and amortized. In addition, the Company wrote off $3.4 million and $0.8 million, primarily of internal-use software as a result of certain restructuring efforts during the years ended December 31, 2021 and December 31, 2020, respectively.