Stock-Based Compensation (Tables)
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12 Months Ended |
Dec. 31, 2012
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
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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, 2012, 2011 and 2010 (in thousands): | | | | | | | | | | | | | | For the Years Ended December 31, | 2012 | | 2011 | | 2010 | Stock-based compensation expense by type of award: | | | | | | Stock options | $ | 14,244 |
| | $ | 13,533 |
| | $ | 15,154 |
| Deferred stock units | 1,885 |
| | 1,885 |
| | 1,885 |
| Restricted stock units | 77,882 |
| | 47,807 |
| | 62,928 |
| Shares issued under the 1999 ESPP | 5,850 |
| | 5,553 |
| | 4,319 |
| Amounts capitalized as internal-use software | (9,276 | ) | | (7,473 | ) | | (7,818 | ) | Total stock-based compensation before income taxes | 90,585 |
| | 61,305 |
| | 76,468 |
| Less: Income tax benefit | (33,126 | ) | | (21,212 | ) | | (26,566 | ) | Total stock-based compensation, net of taxes | $ | 57,459 |
| | $ | 40,093 |
| | $ | 49,902 |
| Effect of stock-based compensation on income by line item: | | | | | | Cost of revenues | $ | 2,871 |
| | $ | 2,360 |
| | $ | 2,806 |
| Research and development expense | 17,275 |
| | 11,125 |
| | 14,539 |
| Sales and marketing expense | 42,760 |
| | 27,990 |
| | 35,525 |
| General and administrative expense | 27,679 |
| | 19,830 |
| | 23,598 |
| Provision for income taxes | (33,126 | ) | | (21,212 | ) | | (26,566 | ) | Total cost related to stock-based compensation, net of taxes | $ | 57,459 |
| | $ | 40,093 |
| | $ | 49,902 |
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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, 2012, 2011 and 2010 were estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: | | | | | | | | For the Years Ended December 31, | | 2012 | | 2011 | | 2010 | Expected life (years) | 4.2 | | 4.2 | | 4.2 | Risk-free interest rate (%) | 0.6 | | 1.3 | | 1.4 | Expected volatility (%) | 50.8 | | 48.9 | | 50.9 | Dividend yield (%) | — | | — | | — |
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Schedule of ESPP Granted Black Scholes |
The grant-date fair values of Akamai’s ESPP awards granted during the years ended December 31, 2012, 2011 and 2010 were estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: | | | | | | | | For the Years Ended December 31, | 2012 | | 2011 | | 2010 | Expected life (years) | 0.5 | | 0.5 | | 0.5 | Risk-free interest rate (%) | 0.1 | | 0.1 | | 0.2 | Expected volatility (%) | 51.0 | | 43.7 | | 51.2 | Dividend yield (%) | — | | — | | — |
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Schedule of Summary of Stock Option Activity |
The following table summarizes stock option activity during the years ended December 31, 2012, 2011 and 2010: | | | | | | | |
| Shares (in thousands) |
| Weighted Average Exercise Price | 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 |
| Granted | 954 |
| | 16.81 |
| Exercised | (2,105 | ) | | 13.23 |
| Forfeited and expired | (643 | ) | | 37.37 |
| Outstanding at December 31, 2012 | 6,223 |
| | $ | 26.30 |
| Exercisable at December 31, 2012 | 4,814 |
| | $ | 25.60 |
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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, 2012: | | | | | | | | | | | | | | | | | | | | | | | | | | | 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) |
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| (In thousands) |
| (In thousands) |
| (In years) |
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| (In thousands) | 0.20-0.31 | 23 |
| | 1.7 | | $ | 0.31 |
| | $ | 948 |
| | 23 |
| | 1.7 | | $ | 0.31 |
| | $ | 948 |
| 0.82 | 50 |
| | 7.0 | | 0.82 |
| | 2,020 |
| | 20 |
| | 7.1 | | 0.82 |
| | 812 |
| 1.33-1.49 | 20 |
| | 0.2 | | 1.39 |
| | 774 |
| | 20 |
| | 0.2 | | 1.39 |
| | 774 |
| 2.77-4.10 | 287 |
| | 8.1 | | 2.81 |
| | 10,944 |
| | 79 |
| | 7.0 | | 2.90 |
| | 2,984 |
| 4.29-5.56 | 265 |
| | 0.7 | | 4.98 |
| | 9,530 |
| | 265 |
| | 0.7 | | 4.98 |
| | 9,530 |
| 7.47-11.20 | 46 |
| | 4.9 | | 9.38 |
| | 1,443 |
| | 29 |
| | 2.8 | | 10.51 |
| | 874 |
| 12.14-18.01 | 1,901 |
| | 2.4 | | 14.87 |
| | 49,493 |
| | 1,866 |
| | 2.4 | | 14.83 |
| | 48,660 |
| 18.49-26.95 | 1,027 |
| | 4.0 | | 24.83 |
| | 16,515 |
| | 779 |
| | 3.7 | | 24.80 |
| | 12,552 |
| 28.13-42.10 | 1,319 |
| | 5.1 | | 35.48 |
| | 7,282 |
| | 788 |
| | 4.7 | | 34.33 |
| | 5,245 |
| 43.08-56.60 | 1,194 |
| | 3.4 | | 49.32 |
| | — |
| | 945 |
| | 3.1 | | 50.05 |
| | — |
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| 6,132 |
| | 3.7 | | $ | 26.43 |
| | $ | 98,949 |
| | 4,814 |
| | 3.1 | | $ | 25.60 |
| | $ | 82,379 |
| Expected forfeitures | 91 |
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| Total options outstanding | 6,223 |
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Schedule Of Deferred Stock Units Activity |
The following table summarizes the DSU activity for the years ended December 31, 2012, 2011 and 2010: | | | | | | | | | Units (in thousands) | | Weighted Average Grant-Date Fair Value | 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 |
| Granted | 65 |
| | 29.17 |
| Vested and distributed | (79 | ) | | 29.76 |
| Outstanding at December 31, 2012 | 285 |
| | $ | 25.93 |
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Schedule of Restricted Stock Units by Type |
The following table summarizes the different types of RSUs granted by the Company (in thousands): | | | | | | | | | | | For the Years Ended December 31, | 2012 | | 2011 | | 2010 | RSUs with service-based vesting conditions | 2,782 |
| | 3,003 |
| | 1,597 |
| RSUs with performance-based vesting conditions | 369 |
| | 550 |
| | 1,124 |
| Total | 3,151 |
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| 3,553 |
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| 2,721 |
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Schedule of Restricted Stock Units Activity |
The following table summarizes the RSU activity for the years ended December 31, 2012, 2011 and 2010: | | | | | | | |
| Units (in thousands) |
| Weighted Average Grant-Date Fair Value | 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 |
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| 27.95 |
| Granted | 3,150 |
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| 35.82 |
| Vested | (2,732 | ) |
| 26.14 |
| Forfeited | (989 | ) |
| 27.91 |
| Outstanding at December 31, 2012 | 5,946 |
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| $ | 32.97 |
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