Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2011

Disclosure of Compensation Related Costs, Share-based Payments [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 operations for the years ended December 31, 2011, 2010 and 2009 (in thousands):

	For the Years Ended December 31,
	2011			2010			2009
Stock-based compensation expense by type of award:
Stock options	$	13,533		$	15,154		$	17,636
Deferred stock units	1,885			1,885			2,085
Restricted stock units	47,807			62,928			41,584
Shares issued under the 1999 ESPP	5,553			4,319			3,772
Amounts capitalized as internal-use software	(7,473		)	(7,818		)	(6,280		)
Total stock-based compensation before income taxes	61,305			76,468			58,797
Less: Income tax benefit	(21,212		)	(26,566		)	(22,633		)
Total stock-based compensation, net of taxes	$	40,093		$	49,902		$	36,164
Effect of stock-based compensation on income by line item:
Cost of revenues	$	2,360		$	2,806		$	2,195
Research and development expense	11,125			14,539			10,967
Sales and marketing expense	27,990			35,525			27,411
General and administrative expense	19,830			23,598			18,224
Provision for income taxes	(21,212		)	(26,566		)	(22,633		)
Total cost related to stock-based compensation, net of taxes	$	40,093		$	49,902		$	36,164

Schedule of Stock Options Granted Black Scholes

The grant-date fair values of Akamai’s stock option awards granted during the years ended December 31, 2011, 2010 and 2009 were estimated using the Black-Scholes option pricing model with the following weighted-average assumptions:

	For the Years Ended December 31,
	2011	2010	2009
Expected life (years)	4.2	4.2	4.1
Risk-free interest rate (%)	1.3	1.4	1.7
Expected volatility (%)	48.9	50.9	54.8
Dividend yield (%)	—	—	—

Schedule of ESPP Granted Black Scholes

The grant-date fair values of Akamai’s ESPP awards granted during the years ended December 31, 2011, 2010 and 2009 were estimated using the Black-Scholes option pricing model with the following weighted-average assumptions:

	For the Years Ended December 31,
	2011	2010	2009
Expected life (years)	0.5	0.5	0.5
Risk-free interest rate (%)	0.1	0.2	0.4
Expected volatility (%)	43.7	51.2	69.2
Dividend yield (%)	—	—	—

Schedule of Summary of Stock Option Activity

The following table summarizes stock option activity during the years ended December 31, 2011, 2010 and 2009:

	Shares (in thousands)		Weighted Average Exercise Price
Outstanding at December 31, 2008	10,380		$	18.76
Granted	1,146		19.11
Exercised	(1,178	)	10.09
Forfeited and expired	(326	)	33.68
Outstanding at December 31, 2009	10,022		19.34
Granted	1,577		39.72
Exercised	(2,366	)	14.21
Forfeited and expired	(287	)	39.69
Outstanding at December 31, 2010	8,946		23.63
Granted	656		37.33
Exercised	(1,044	)	12.09
Forfeited and expired	(541	)	43.96
Outstanding at December 31, 2011	8,017		$	24.89
Exercisable at December 31, 2011	6,247		$	22.54

Schedule of Stock Options Outstanding Expected to Vest and Exercisable

The following table summarizes stock options that are outstanding and expected to vest and stock options exercisable at December 31, 2011:

Range of Exercise Price ($)	Options Outstanding and Expected to Vest						Options Exercisable
	Number of Options	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Aggregate Intrinsic Value		Number of Options	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Aggregate Intrinsic Value
	(In thousands)	(In years)			(In thousands)		(In thousands)	(In years)			(In thousands)
0.31-0.49	43	2.2	$	0.31	$	1,366	43	2.2	$	0.31	$	1,366
0.89-1.33	249	0.7	0.91		7,816		248	0.7	0.91		7,782
1.40-1.65	170	1.0	1.62		5,217		170	1.0	1.62		5,217
2.27-3.33	64	0.9	2.84		1,871		64	0.9	2.84		1,871
3.71-5.56	448	1.5	4.89		12,272		446	1.5	4.89		12,235
8.28-12.26	375	3.1	12.10		7,579		375	3.1	12.10		7,576
12.76-19.07	2,444	3.5	15.30		41,506		2,183	3.4	15.60		37,588
19.21-28.38	1,403	5.0	24.67		10,678		914	4.6	24.56		7,054
29.36-43.99	1,532	5.7	36.34		582		866	5.6	34.40		353
44.27-56.60	1,204	4.2	50.81		—		938	3.7	51.43		—
	7,932	4.0	24.74		$	88,887	6,247	3.5	22.54		$	81,042
Expected forfeitures	85
Total options outstanding	8,017

Schedule Of Deferred Stock Units Activity

The following table summarizes the DSU activity for the years ended December 31, 2011, 2010 and 2009:

	Units (in thousands)		Weighted Average Grant-Date Fair Value
Outstanding at December 31, 2008	207		$	24.86
Granted	97		21.56
Vested and distributed	(17	)	33.07
Outstanding at December 31, 2009	287		21.04
Granted	47		39.95
Vested and distributed	(77	)	18.40
Outstanding at December 31, 2010	257		25.31
Granted	58		32.48
Vested and distributed	(15	)	33.78
Forfeited	(1	)	39.95
Outstanding at December 31, 2011	299		$	26.25

Schedule of Restricted Stock Units by Type

The following table summarizes the different types of restricted stock units (“RSUs”) granted by the Company (in thousands):

	For the Years Ended December 31,
	2011	2010	2009
RSUs with service-based vesting conditions	3,003	1,597	2,342
RSUs with performance-based vesting conditions	550	1,124	1,974
Total	3,553	2,721	4,316

Schedule of Restricted Stock Units Activity

The following table summarizes the RSU activity for the years ended December 31, 2011, 2010 and 2009:

	Units (in thousands)		Weighted Average Grant-Date Fair Value
Outstanding at December 31, 2008	6,199		$	34.64
Granted	4,316		18.73
Vested	(3,282	)	28.20
Forfeited	(370	)	25.99
Outstanding at December 31, 2009	6,863		27.63
Granted	2,721		26.56
Vested	(1,971	)	23.97
Forfeited	(1,406	)	47.47
Outstanding at December 31, 2010	6,207		23.76
Granted	3,553		33.75
Vested	(1,931	)	23.15
Forfeited	(1,312	)	30.62
Outstanding at December 31, 2011	6,517		$	27.95