Document
false--12-31Q2201900012377460.06320.05960.06320.05460.06390.06180.06440.0618P3YP3YP3YP4YP3YP4Y21349000191510000.33300000.00010.0001500000000500000000143444515145741251143444178145741251000070000003199200028919000001790000016500000016500000045000370000350002690000.00010.0001500000050000000000P3YP2YP1YP1YP1YP1Y 0001237746 2019-01-01 2019-06-30 0001237746 2019-08-01 0001237746 2019-06-30 0001237746 2018-12-31 0001237746 2018-04-01 2018-06-30 0001237746 2019-04-01 2019-06-30 0001237746 2018-01-01 2018-06-30 0001237746 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001237746 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0001237746 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001237746 us-gaap:CommonStockMember 2018-12-31 0001237746 2019-01-01 2019-03-31 0001237746 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001237746 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001237746 us-gaap:CommonStockMember 2019-03-31 0001237746 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001237746 2019-03-31 0001237746 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001237746 us-gaap:RetainedEarningsMember 2019-06-30 0001237746 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001237746 us-gaap:CommonStockMember 2019-06-30 0001237746 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001237746 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001237746 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001237746 us-gaap:RetainedEarningsMember 2019-03-31 0001237746 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001237746 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001237746 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001237746 us-gaap:RetainedEarningsMember 2018-12-31 0001237746 2018-01-01 2018-03-31 0001237746 us-gaap:RetainedEarningsMember 2018-06-30 0001237746 us-gaap:CommonStockMember 2018-01-01 2018-03-31 0001237746 2018-06-30 0001237746 us-gaap:AccountingStandardsUpdate201409Member us-gaap:RetainedEarningsMember 2018-01-01 0001237746 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001237746 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0001237746 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001237746 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0001237746 us-gaap:AccountingStandardsUpdate201609Member 2018-01-01 0001237746 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0001237746 us-gaap:CommonStockMember 2018-03-31 0001237746 us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 0001237746 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001237746 us-gaap:CommonStockMember 2017-12-31 0001237746 us-gaap:CommonStockMember 2018-06-30 0001237746 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0001237746 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0001237746 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001237746 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-03-31 0001237746 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0001237746 2017-12-31 0001237746 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001237746 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001237746 us-gaap:AccountingStandardsUpdate201609Member us-gaap:AdditionalPaidInCapitalMember 2018-01-01 0001237746 us-gaap:RetainedEarningsMember 2017-12-31 0001237746 us-gaap:RetainedEarningsMember 2018-03-31 0001237746 2018-03-31 0001237746 us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 2018-01-01 0001237746 eigi:DomainNameBusinessMember 2019-06-30 0001237746 eigi:WebpresenceMember 2019-01-01 2019-06-30 0001237746 us-gaap:MeasurementInputDiscountRateMember 2018-12-31 0001237746 eigi:ReportingUnitsRepresenting3OfGoodwillMember 2018-12-31 0001237746 eigi:DomainNameBusinessMember 2019-04-01 2019-06-30 0001237746 eigi:ReportingUnitsRepresenting2OfGoodwillMember 2018-01-01 2018-12-31 0001237746 eigi:EmailmarketingMember 2019-06-30 0001237746 eigi:WebHostingMember srt:MinimumMember 2019-01-01 2019-06-30 0001237746 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0001237746 eigi:ReportingUnitsRepresenting3OfGoodwillMember 2018-01-01 2018-12-31 0001237746 eigi:ReportingUnitsWhoseFairValueExceedsCarryingValueBy20Member 2018-01-01 2018-12-31 0001237746 eigi:DomainNameBusinessMember 2018-12-31 0001237746 eigi:WebHostingMember srt:MaximumMember 2019-01-01 2019-06-30 0001237746 eigi:ReportingUnitsWithGoodwillAllocatedMember 2019-01-01 2019-06-30 0001237746 eigi:WebpresenceMember 2019-06-30 0001237746 us-gaap:MeasurementInputDiscountRateMember eigi:ReportingUnitsRepresenting2OfGoodwillMember 2018-12-31 0001237746 eigi:WebpresenceMember 2018-12-31 0001237746 eigi:ReportingUnitsRepresenting95OfGoodwillMember 2018-01-01 2018-12-31 0001237746 eigi:EmailmarketingMember 2019-04-01 2019-06-30 0001237746 eigi:EmailmarketingMember 2018-12-31 0001237746 eigi:WebHostingMember srt:WeightedAverageMember 2019-01-01 2019-06-30 0001237746 eigi:WebpresenceMember 2019-04-01 2019-06-30 0001237746 eigi:DomainNameBusinessMember 2019-01-01 2019-06-30 0001237746 eigi:RestrictedStockAwardsAndUnitsMember 2018-04-01 2018-06-30 0001237746 eigi:RestrictedStockAwardsAndUnitsMember 2018-01-01 2018-06-30 0001237746 us-gaap:EmployeeStockOptionMember 2018-01-01 2018-06-30 0001237746 eigi:RestrictedStockAwardsAndUnitsMember 2019-01-01 2019-06-30 0001237746 eigi:RestrictedStockAwardsAndUnitsMember 2019-04-01 2019-06-30 0001237746 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-06-30 0001237746 us-gaap:EmployeeStockOptionMember 2019-04-01 2019-06-30 0001237746 us-gaap:EmployeeStockOptionMember 2018-04-01 2018-06-30 0001237746 us-gaap:OfficeEquipmentMember 2019-01-01 2019-06-30 0001237746 us-gaap:BuildingMember 2019-01-01 2019-06-30 0001237746 us-gaap:FurnitureAndFixturesMember 2019-01-01 2019-06-30 0001237746 2019-04-01 eigi:DomainNameBusinessMember 2019-06-30 0001237746 2019-04-01 2019-06-30 0001237746 2020-04-01 eigi:EmailmarketingMember 2019-06-30 0001237746 eigi:WebpresenceMember 2019-06-30 0001237746 2019-04-01 eigi:EmailmarketingMember 2019-06-30 0001237746 eigi:EmailmarketingMember 2019-06-30 0001237746 eigi:DomainNameBusinessMember 2019-06-30 0001237746 2019-04-01 eigi:WebpresenceMember 2019-06-30 0001237746 2020-04-01 eigi:WebpresenceMember 2019-06-30 0001237746 2020-04-01 2019-06-30 0001237746 2019-06-30 0001237746 2020-04-01 eigi:DomainNameBusinessMember 2019-06-30 0001237746 eigi:WebzaiLimitedMember eigi:EngineeringAndDevelopmentMember 2019-01-01 2019-06-30 0001237746 srt:MaximumMember us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2019-01-01 2019-06-30 0001237746 srt:MinimumMember us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2019-01-01 2019-06-30 0001237746 srt:ScenarioPreviouslyReportedMember us-gaap:DomesticCountryMember 2017-12-31 0001237746 us-gaap:DomesticCountryMember 2017-12-31 0001237746 us-gaap:StateAndLocalJurisdictionMember 2017-12-31 0001237746 srt:ScenarioPreviouslyReportedMember us-gaap:StateAndLocalJurisdictionMember 2017-12-31 0001237746 srt:ScenarioPreviouslyReportedMember 2018-01-01 2018-06-30 0001237746 srt:ScenarioPreviouslyReportedMember 2018-04-01 2018-06-30 0001237746 srt:RestatementAdjustmentMember 2018-04-01 2018-06-30 0001237746 srt:RestatementAdjustmentMember 2018-01-01 2018-06-30 0001237746 srt:ScenarioPreviouslyReportedMember 2018-06-30 0001237746 srt:RestatementAdjustmentMember 2018-06-30 0001237746 eigi:LeasedSoftwareMember 2019-06-30 0001237746 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2019-06-30 0001237746 us-gaap:ConstructionInProgressMember 2018-12-31 0001237746 us-gaap:BuildingMember 2018-12-31 0001237746 us-gaap:LeaseholdImprovementsMember 2019-06-30 0001237746 us-gaap:LeaseholdImprovementsMember 2018-12-31 0001237746 us-gaap:BuildingMember 2019-06-30 0001237746 us-gaap:LandMember 2018-12-31 0001237746 us-gaap:ConstructionInProgressMember 2019-06-30 0001237746 us-gaap:FurnitureAndFixturesMember 2019-06-30 0001237746 us-gaap:FurnitureAndFixturesMember 2018-12-31 0001237746 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2018-12-31 0001237746 us-gaap:OfficeEquipmentMember 2019-06-30 0001237746 us-gaap:OfficeEquipmentMember 2018-12-31 0001237746 us-gaap:LandMember 2019-06-30 0001237746 srt:MaximumMember 2019-06-30 2019-06-30 0001237746 srt:MinimumMember 2019-06-30 2019-06-30 0001237746 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001237746 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001237746 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001237746 us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001237746 us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001237746 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001237746 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001237746 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001237746 eigi:InterestRateCapEnteredIntoJune2018Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0001237746 us-gaap:CashFlowHedgingMember 2019-01-01 2019-06-30 0001237746 eigi:InterestRateCapEnteredIntoJune2018Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-01-01 2019-06-30 0001237746 eigi:InterestRateCapEnteredIntoJune2018Member us-gaap:CashFlowHedgingMember 2018-06-30 0001237746 eigi:InterestRateCapEnteredIntoJune2018Member us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001237746 eigi:InterestRateCapEnteredIntoJune2018Member 2019-06-30 0001237746 eigi:InterestRateCapEnteredIntoDecember2015Member 2019-06-30 0001237746 eigi:InterestRateCapEnteredIntoDecember2015Member us-gaap:CashFlowHedgingMember 2015-12-31 0001237746 eigi:InterestRateCapEnteredIntoDecember2015Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001237746 eigi:InterestRateCapEnteredIntoDecember2015Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-01-01 2019-06-30 0001237746 eigi:InterestRateCapEnteredIntoDecember2015Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0001237746 eigi:InterestRateCapEnteredIntoJune2018Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001237746 eigi:InterestRateCapEnteredIntoDecember2015Member 2015-12-01 2015-12-31 0001237746 eigi:InterestRateCapEnteredIntoJune2018Member 2018-06-01 2018-06-30 0001237746 eigi:EmailmarketingMember 2019-01-01 2019-06-30 0001237746 us-gaap:IntellectualPropertyMember 2018-12-31 0001237746 eigi:AvailableForSaleMember 2018-01-01 2018-12-31 0001237746 eigi:AvailableForSaleMember 2018-12-31 0001237746 us-gaap:CustomerRelationshipsMember 2018-12-31 0001237746 us-gaap:DevelopedTechnologyRightsMember 2018-12-31 0001237746 us-gaap:TradeNamesMember 2018-01-01 2018-12-31 0001237746 us-gaap:TradeNamesMember 2018-12-31 0001237746 us-gaap:IntellectualPropertyMember 2018-01-01 2018-12-31 0001237746 us-gaap:DevelopedTechnologyRightsMember 2018-01-01 2018-12-31 0001237746 us-gaap:CustomerRelationshipsMember 2018-01-01 2018-12-31 0001237746 us-gaap:DevelopedTechnologyRightsMember 2019-06-30 0001237746 us-gaap:IntellectualPropertyMember 2019-01-01 2019-06-30 0001237746 us-gaap:TradeNamesMember 2019-06-30 0001237746 eigi:AvailableForSaleMember 2019-06-30 0001237746 us-gaap:CustomerRelationshipsMember 2019-06-30 0001237746 eigi:AvailableForSaleMember 2019-01-01 2019-06-30 0001237746 us-gaap:IntellectualPropertyMember 2019-06-30 0001237746 us-gaap:DevelopedTechnologyRightsMember 2019-01-01 2019-06-30 0001237746 us-gaap:TradeNamesMember 2019-01-01 2019-06-30 0001237746 us-gaap:CustomerRelationshipsMember 2019-01-01 2019-06-30 0001237746 eigi:SeniorNotesDueTwoThousandAndTwentyFourMember 2018-12-31 0001237746 eigi:SeniorNotesDueTwoThousandAndTwentyFourMember 2019-06-30 0001237746 eigi:A2018FirstLienTermLoanMember 2019-06-30 0001237746 eigi:A2018FirstLienTermLoanMember 2018-12-31 0001237746 eigi:LiborRevolverLoanMember 2019-06-30 0001237746 eigi:LiborRevolverLoanMember 2018-12-31 0001237746 eigi:A2018FirstLienTermLoanMember 2019-01-01 2019-06-30 0001237746 us-gaap:RevolvingCreditFacilityMember eigi:A2016RevolverCommitmentsMaturingFebruary2021Member 2019-06-30 0001237746 eigi:NonextendedRevolvingLoanMember eigi:AlternateBaseRateLoansMember 2019-01-01 2019-06-30 0001237746 eigi:SeniorNotesDueTwoThousandAndTwentyFourMember 2016-02-09 0001237746 us-gaap:RevolvingCreditFacilityMember eigi:LiborBasedInterestRateLoanMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-06-30 0001237746 us-gaap:RevolvingCreditFacilityMember 2019-06-30 0001237746 eigi:NonextendedRevolvingLoanMember eigi:LiborBasedInterestRateLoanMember 2019-06-30 0001237746 eigi:ExtendedRevolvingLoanMember eigi:LiborBasedInterestRateLoanMember 2019-06-30 0001237746 eigi:VoluntaryPrepaymentNumberOneMember eigi:A2018FirstLienTermLoanMember 2019-01-01 2019-06-30 0001237746 eigi:ExtendedRevolvingLoanMember eigi:AlternateBaseRateLoansMember 2019-01-01 2019-06-30 0001237746 us-gaap:RevolvingCreditFacilityMember eigi:AlternateBaseRateLoansMember us-gaap:FederalFundsEffectiveSwapRateMember 2019-01-01 2019-06-30 0001237746 eigi:A2018FirstLienTermLoanMember us-gaap:FederalFundsEffectiveSwapRateMember 2019-01-01 2019-06-30 0001237746 us-gaap:RevolvingCreditFacilityMember 2019-01-01 2019-06-30 0001237746 eigi:SeniorNotesDueTwoThousandAndTwentyFourMember 2019-01-01 2019-06-30 0001237746 eigi:A2018FirstLienTermLoanMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-06-30 0001237746 us-gaap:RevolvingCreditFacilityMember eigi:A2016RevolverCommitmentsMaturingJune2023Member 2019-06-30 0001237746 eigi:SeniorNotesDueTwoThousandAndTwentyFourMember 2018-06-30 0001237746 srt:MinimumMember 2019-04-01 2019-06-30 0001237746 srt:MinimumMember 2018-01-01 2018-06-30 0001237746 srt:MaximumMember 2018-01-01 2018-06-30 0001237746 srt:MaximumMember 2019-01-01 2019-06-30 0001237746 srt:MaximumMember 2019-04-01 2019-06-30 0001237746 us-gaap:RevolvingCreditFacilityMember 2018-12-31 0001237746 srt:MaximumMember 2018-04-01 2018-06-30 0001237746 srt:MinimumMember 2019-01-01 2019-06-30 0001237746 srt:MinimumMember 2018-04-01 2018-06-30 0001237746 eigi:TwoThousandElevenStockIncentivePlanMember 2019-01-01 2019-06-30 0001237746 eigi:TwoThousandElevenStockIncentivePlanMember 2019-06-30 0001237746 eigi:TwoThousandElevenStockIncentivePlanMember 2018-12-31 0001237746 eigi:TwoThousandAndThirteenStockIncentivePlanMember 2019-06-30 0001237746 eigi:TwoThousandAndThirteenStockIncentivePlanMember 2019-01-01 2019-06-30 0001237746 eigi:TwoThousandAndThirteenStockIncentivePlanMember 2018-12-31 0001237746 us-gaap:RestrictedStockUnitsRSUMember eigi:TwoThousandElevenStockIncentivePlanMember 2018-12-31 0001237746 us-gaap:RestrictedStockUnitsRSUMember eigi:TwoThousandElevenStockIncentivePlanMember 2019-01-01 2019-06-30 0001237746 us-gaap:RestrictedStockUnitsRSUMember eigi:TwoThousandElevenStockIncentivePlanMember 2019-06-30 0001237746 us-gaap:RestrictedStockMember eigi:TwoThousandAndThirteenStockIncentivePlanMember 2019-01-01 2019-06-30 0001237746 us-gaap:RestrictedStockMember eigi:TwoThousandAndThirteenStockIncentivePlanMember 2018-12-31 0001237746 us-gaap:RestrictedStockMember eigi:TwoThousandAndThirteenStockIncentivePlanMember 2019-06-30 0001237746 eigi:TwoThousandElevenStockIncentivePlanMember 2016-02-09 0001237746 us-gaap:RestrictedStockMember 2019-06-30 0001237746 us-gaap:EmployeeStockOptionMember eigi:TwoThousandElevenStockIncentivePlanMember 2016-02-09 2016-02-09 0001237746 us-gaap:EmployeeStockOptionMember eigi:TwoThousandAndThirteenStockIncentivePlanMember 2019-01-01 2019-06-30 0001237746 us-gaap:EmployeeStockOptionMember 2019-06-30 0001237746 us-gaap:RestrictedStockUnitsRSUMember eigi:TwoThousandElevenStockIncentivePlanMember 2016-02-09 2016-02-09 0001237746 us-gaap:CostOfSalesMember eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2018-01-01 2018-06-30 0001237746 eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2019-04-01 2019-06-30 0001237746 us-gaap:GeneralAndAdministrativeExpenseMember eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2018-01-01 2018-06-30 0001237746 us-gaap:CostOfSalesMember eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2018-04-01 2018-06-30 0001237746 eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2018-01-01 2018-06-30 0001237746 us-gaap:GeneralAndAdministrativeExpenseMember eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2018-04-01 2018-06-30 0001237746 us-gaap:CostOfSalesMember eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2019-01-01 2019-06-30 0001237746 us-gaap:ResearchAndDevelopmentExpenseMember eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2018-04-01 2018-06-30 0001237746 us-gaap:GeneralAndAdministrativeExpenseMember eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2019-01-01 2019-06-30 0001237746 eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2019-01-01 2019-06-30 0001237746 us-gaap:SellingAndMarketingExpenseMember eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2019-04-01 2019-06-30 0001237746 eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2018-04-01 2018-06-30 0001237746 us-gaap:ResearchAndDevelopmentExpenseMember eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2018-01-01 2018-06-30 0001237746 us-gaap:CostOfSalesMember eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2019-04-01 2019-06-30 0001237746 us-gaap:ResearchAndDevelopmentExpenseMember eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2019-01-01 2019-06-30 0001237746 us-gaap:SellingAndMarketingExpenseMember eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2018-04-01 2018-06-30 0001237746 us-gaap:SellingAndMarketingExpenseMember eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2018-01-01 2018-06-30 0001237746 us-gaap:SellingAndMarketingExpenseMember eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2019-01-01 2019-06-30 0001237746 us-gaap:GeneralAndAdministrativeExpenseMember eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2019-04-01 2019-06-30 0001237746 us-gaap:ResearchAndDevelopmentExpenseMember eigi:TwoThousandElevenAndTwoThousandThirteenStockIncentivePlanMember 2019-04-01 2019-06-30 0001237746 us-gaap:RestrictedStockUnitsRSUMember eigi:TwoThousandAndThirteenStockIncentivePlanMember 2018-12-31 0001237746 us-gaap:RestrictedStockUnitsRSUMember eigi:TwoThousandAndThirteenStockIncentivePlanMember 2019-01-01 2019-06-30 0001237746 us-gaap:RestrictedStockUnitsRSUMember eigi:TwoThousandAndThirteenStockIncentivePlanMember 2019-06-30 0001237746 srt:MaximumMember us-gaap:RestrictedStockUnitsRSUMember eigi:TwoThousandElevenStockIncentivePlanMember 2019-01-01 2019-06-30 0001237746 srt:MinimumMember us-gaap:RestrictedStockUnitsRSUMember eigi:TwoThousandAndThirteenStockIncentivePlanMember 2019-01-01 2019-06-30 0001237746 us-gaap:EmployeeStockOptionMember eigi:A2017CEOAwardMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2019-06-30 0001237746 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0001237746 us-gaap:AccumulatedTranslationAdjustmentMember 2019-06-30 0001237746 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-06-30 0001237746 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-12-31 0001237746 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-06-30 0001237746 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-06-30 0001237746 country:US eigi:DomainNameBusinessMember 2018-04-01 2018-06-30 0001237746 country:US eigi:WebpresenceMember 2018-04-01 2018-06-30 0001237746 country:US 2019-04-01 2019-06-30 0001237746 us-gaap:NonUsMember eigi:WebpresenceMember 2019-01-01 2019-06-30 0001237746 country:US eigi:WebpresenceMember 2018-01-01 2018-06-30 0001237746 eigi:DomainNameBusinessMember 2018-04-01 2018-06-30 0001237746 us-gaap:NonUsMember 2018-01-01 2018-06-30 0001237746 country:US eigi:EmailmarketingMember 2018-04-01 2018-06-30 0001237746 country:US eigi:DomainNameBusinessMember 2019-04-01 2019-06-30 0001237746 us-gaap:NonUsMember 2019-01-01 2019-06-30 0001237746 country:US eigi:DomainNameBusinessMember 2018-01-01 2018-06-30 0001237746 us-gaap:NonUsMember eigi:EmailmarketingMember 2018-01-01 2018-06-30 0001237746 country:US eigi:DomainNameBusinessMember 2019-01-01 2019-06-30 0001237746 eigi:WebpresenceMember 2018-04-01 2018-06-30 0001237746 country:US eigi:EmailmarketingMember 2018-01-01 2018-06-30 0001237746 us-gaap:NonUsMember eigi:DomainNameBusinessMember 2018-04-01 2018-06-30 0001237746 us-gaap:NonUsMember 2019-04-01 2019-06-30 0001237746 us-gaap:NonUsMember eigi:WebpresenceMember 2018-01-01 2018-06-30 0001237746 country:US 2018-04-01 2018-06-30 0001237746 us-gaap:NonUsMember eigi:DomainNameBusinessMember 2018-01-01 2018-06-30 0001237746 us-gaap:NonUsMember eigi:WebpresenceMember 2018-04-01 2018-06-30 0001237746 eigi:EmailmarketingMember 2018-01-01 2018-06-30 0001237746 us-gaap:NonUsMember 2018-04-01 2018-06-30 0001237746 us-gaap:NonUsMember eigi:EmailmarketingMember 2019-01-01 2019-06-30 0001237746 us-gaap:NonUsMember eigi:WebpresenceMember 2019-04-01 2019-06-30 0001237746 country:US 2018-01-01 2018-06-30 0001237746 us-gaap:NonUsMember eigi:EmailmarketingMember 2018-04-01 2018-06-30 0001237746 country:US eigi:WebpresenceMember 2019-01-01 2019-06-30 0001237746 us-gaap:NonUsMember eigi:EmailmarketingMember 2019-04-01 2019-06-30 0001237746 us-gaap:NonUsMember eigi:DomainNameBusinessMember 2019-04-01 2019-06-30 0001237746 country:US eigi:WebpresenceMember 2019-04-01 2019-06-30 0001237746 country:US 2019-01-01 2019-06-30 0001237746 eigi:DomainNameBusinessMember 2018-01-01 2018-06-30 0001237746 eigi:WebpresenceMember 2018-01-01 2018-06-30 0001237746 us-gaap:NonUsMember eigi:DomainNameBusinessMember 2019-01-01 2019-06-30 0001237746 eigi:EmailmarketingMember 2018-04-01 2018-06-30 0001237746 country:US eigi:EmailmarketingMember 2019-01-01 2019-06-30 0001237746 country:US eigi:EmailmarketingMember 2019-04-01 2019-06-30 0001237746 eigi:ProfessionalServicesMember us-gaap:TransferredOverTimeMember 2019-04-01 2019-06-30 0001237746 eigi:DirectRevenueFromSubscribersMember eigi:DomainNameBusinessMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-06-30 0001237746 eigi:ResellerRevenueMember eigi:DomainNameBusinessMember us-gaap:TransferredOverTimeMember 2019-04-01 2019-06-30 0001237746 eigi:DomainParkingMember eigi:WebpresenceMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-06-30 0001237746 eigi:WebpresenceMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-06-30 0001237746 eigi:ResellerRevenueMember eigi:DomainNameBusinessMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-06-30 0001237746 eigi:DomainParkingMember eigi:DomainNameBusinessMember us-gaap:TransferredAtPointInTimeMember 2019-04-01 2019-06-30 0001237746 us-gaap:TransferredOverTimeMember 2019-01-01 2019-06-30 0001237746 eigi:DomainParkingMember eigi:EmailmarketingMember us-gaap:TransferredAtPointInTimeMember 2019-04-01 2019-06-30 0001237746 eigi:EmailmarketingMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-06-30 0001237746 eigi:ProfessionalServicesMember eigi:WebpresenceMember us-gaap:TransferredOverTimeMember 2019-04-01 2019-06-30 0001237746 eigi:DomainNameBusinessMember us-gaap:TransferredAtPointInTimeMember 2019-04-01 2019-06-30 0001237746 eigi:MDFMember eigi:WebpresenceMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-06-30 0001237746 eigi:PremiumDomainsMember us-gaap:TransferredAtPointInTimeMember 2019-04-01 2019-06-30 0001237746 eigi:DomainParkingMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-06-30 0001237746 eigi:WebpresenceMember us-gaap:TransferredOverTimeMember 2019-04-01 2019-06-30 0001237746 eigi:EmailmarketingMember us-gaap:TransferredOverTimeMember 2019-04-01 2019-06-30 0001237746 eigi:PremiumDomainsMember eigi:EmailmarketingMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-06-30 0001237746 eigi:ResellerRevenueMember eigi:WebpresenceMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-06-30 0001237746 eigi:PremiumDomainsMember eigi:WebpresenceMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-06-30 0001237746 eigi:EmailmarketingMember us-gaap:TransferredAtPointInTimeMember 2019-04-01 2019-06-30 0001237746 eigi:ResellerRevenueMember eigi:EmailmarketingMember us-gaap:TransferredOverTimeMember 2019-04-01 2019-06-30 0001237746 eigi:ResellerRevenueMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-06-30 0001237746 eigi:ProfessionalServicesMember eigi:EmailmarketingMember us-gaap:TransferredOverTimeMember 2019-04-01 2019-06-30 0001237746 eigi:ProfessionalServicesMember eigi:DomainNameBusinessMember us-gaap:TransferredOverTimeMember 2019-04-01 2019-06-30 0001237746 eigi:WebpresenceMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-06-30 0001237746 eigi:MDFMember eigi:DomainNameBusinessMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-06-30 0001237746 us-gaap:TransferredOverTimeMember 2019-04-01 2019-06-30 0001237746 eigi:DomainParkingMember us-gaap:TransferredAtPointInTimeMember 2019-04-01 2019-06-30 0001237746 eigi:ResellerRevenueMember us-gaap:TransferredOverTimeMember 2019-04-01 2019-06-30 0001237746 eigi:EmailmarketingMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-06-30 0001237746 eigi:DomainParkingMember eigi:WebpresenceMember us-gaap:TransferredAtPointInTimeMember 2019-04-01 2019-06-30 0001237746 eigi:ResellerRevenueMember eigi:WebpresenceMember us-gaap:TransferredOverTimeMember 2019-04-01 2019-06-30 0001237746 eigi:MDFMember eigi:WebpresenceMember us-gaap:TransferredAtPointInTimeMember 2019-04-01 2019-06-30 0001237746 us-gaap:TransferredAtPointInTimeMember 2019-04-01 2019-06-30 0001237746 eigi:DirectRevenueFromSubscribersMember eigi:WebpresenceMember us-gaap:TransferredOverTimeMember 2019-04-01 2019-06-30 0001237746 eigi:DomainParkingMember eigi:EmailmarketingMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-06-30 0001237746 eigi:PremiumDomainsMember eigi:DomainNameBusinessMember us-gaap:TransferredAtPointInTimeMember 2019-04-01 2019-06-30 0001237746 eigi:PremiumDomainsMember eigi:EmailmarketingMember us-gaap:TransferredAtPointInTimeMember 2019-04-01 2019-06-30 0001237746 us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-06-30 0001237746 eigi:MDFMember eigi:EmailmarketingMember us-gaap:TransferredAtPointInTimeMember 2019-04-01 2019-06-30 0001237746 eigi:DirectRevenueFromSubscribersMember eigi:EmailmarketingMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-06-30 0001237746 eigi:ResellerRevenueMember eigi:EmailmarketingMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-06-30 0001237746 eigi:DirectRevenueFromSubscribersMember us-gaap:TransferredOverTimeMember 2019-04-01 2019-06-30 0001237746 eigi:ProfessionalServicesMember eigi:EmailmarketingMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-06-30 0001237746 eigi:ProfessionalServicesMember eigi:DomainNameBusinessMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-06-30 0001237746 eigi:MDFMember us-gaap:TransferredAtPointInTimeMember 2019-04-01 2019-06-30 0001237746 eigi:MDFMember eigi:EmailmarketingMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-06-30 0001237746 eigi:DirectRevenueFromSubscribersMember eigi:DomainNameBusinessMember us-gaap:TransferredOverTimeMember 2019-04-01 2019-06-30 0001237746 eigi:DomainParkingMember eigi:DomainNameBusinessMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-06-30 0001237746 eigi:WebpresenceMember us-gaap:TransferredAtPointInTimeMember 2019-04-01 2019-06-30 0001237746 eigi:ProfessionalServicesMember eigi:WebpresenceMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-06-30 0001237746 eigi:DomainNameBusinessMember us-gaap:TransferredOverTimeMember 2019-04-01 2019-06-30 0001237746 eigi:PremiumDomainsMember eigi:WebpresenceMember us-gaap:TransferredAtPointInTimeMember 2019-04-01 2019-06-30 0001237746 eigi:PremiumDomainsMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-06-30 0001237746 eigi:PremiumDomainsMember eigi:DomainNameBusinessMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-06-30 0001237746 eigi:DirectRevenueFromSubscribersMember eigi:WebpresenceMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-06-30 0001237746 eigi:DomainNameBusinessMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-06-30 0001237746 eigi:MDFMember eigi:DomainNameBusinessMember us-gaap:TransferredAtPointInTimeMember 2019-04-01 2019-06-30 0001237746 eigi:DirectRevenueFromSubscribersMember eigi:EmailmarketingMember us-gaap:TransferredOverTimeMember 2019-04-01 2019-06-30 0001237746 eigi:DomainNameBusinessMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-06-30 0001237746 eigi:MDFMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-06-30 0001237746 eigi:ProfessionalServicesMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-06-30 0001237746 eigi:DirectRevenueFromSubscribersMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-06-30 0001237746 eigi:ProfessionalServicesMember eigi:DomainNameBusinessMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-06-30 0001237746 eigi:ProfessionalServicesMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-06-30 0001237746 eigi:MDFMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-06-30 0001237746 eigi:ResellerRevenueMember eigi:WebpresenceMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-06-30 0001237746 eigi:DomainParkingMember eigi:DomainNameBusinessMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-06-30 0001237746 eigi:ProfessionalServicesMember eigi:EmailmarketingMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-06-30 0001237746 eigi:WebpresenceMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-06-30 0001237746 eigi:DirectRevenueFromSubscribersMember eigi:DomainNameBusinessMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-06-30 0001237746 us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-06-30 0001237746 eigi:DomainNameBusinessMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-06-30 0001237746 eigi:ProfessionalServicesMember eigi:DomainNameBusinessMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-06-30 0001237746 eigi:DomainParkingMember eigi:DomainNameBusinessMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-06-30 0001237746 eigi:PremiumDomainsMember eigi:WebpresenceMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-06-30 0001237746 eigi:DomainNameBusinessMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-06-30 0001237746 eigi:DomainNameBusinessMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-06-30 0001237746 eigi:DomainNameBusinessMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-06-30 0001237746 eigi:ResellerRevenueMember eigi:DomainNameBusinessMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-06-30 0001237746 eigi:ProfessionalServicesMember eigi:WebpresenceMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-06-30 0001237746 eigi:DomainParkingMember eigi:EmailmarketingMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-06-30 0001237746 us-gaap:TransferredOverTimeMember 2018-04-01 2018-06-30 0001237746 eigi:MDFMember eigi:WebpresenceMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-06-30 0001237746 eigi:ResellerRevenueMember eigi:EmailmarketingMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-06-30 0001237746 eigi:DirectRevenueFromSubscribersMember eigi:WebpresenceMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-06-30 0001237746 eigi:PremiumDomainsMember eigi:DomainNameBusinessMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-06-30 0001237746 eigi:ResellerRevenueMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-06-30 0001237746 eigi:MDFMember eigi:EmailmarketingMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-06-30 0001237746 eigi:DirectRevenueFromSubscribersMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-06-30 0001237746 eigi:ProfessionalServicesMember eigi:EmailmarketingMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-06-30 0001237746 eigi:DomainParkingMember eigi:WebpresenceMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-06-30 0001237746 eigi:ResellerRevenueMember eigi:EmailmarketingMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-06-30 0001237746 eigi:DirectRevenueFromSubscribersMember eigi:WebpresenceMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-06-30 0001237746 eigi:PremiumDomainsMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-06-30 0001237746 eigi:DirectRevenueFromSubscribersMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-06-30 0001237746 eigi:ResellerRevenueMember eigi:WebpresenceMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-06-30 0001237746 eigi:DomainParkingMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-06-30 0001237746 eigi:MDFMember eigi:DomainNameBusinessMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-06-30 0001237746 eigi:EmailmarketingMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-06-30 0001237746 eigi:EmailmarketingMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-06-30 0001237746 eigi:PremiumDomainsMember eigi:EmailmarketingMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-06-30 0001237746 eigi:EmailmarketingMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-06-30 0001237746 eigi:DirectRevenueFromSubscribersMember eigi:EmailmarketingMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-06-30 0001237746 eigi:EmailmarketingMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-06-30 0001237746 us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-06-30 0001237746 eigi:PremiumDomainsMember eigi:DomainNameBusinessMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-06-30 0001237746 eigi:WebpresenceMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-06-30 0001237746 eigi:DomainParkingMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-06-30 0001237746 eigi:ResellerRevenueMember eigi:DomainNameBusinessMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-06-30 0001237746 eigi:WebpresenceMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-06-30 0001237746 eigi:ProfessionalServicesMember eigi:WebpresenceMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-06-30 0001237746 eigi:PremiumDomainsMember eigi:EmailmarketingMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-06-30 0001237746 eigi:MDFMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-06-30 0001237746 eigi:MDFMember eigi:WebpresenceMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-06-30 0001237746 eigi:DirectRevenueFromSubscribersMember eigi:DomainNameBusinessMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-06-30 0001237746 eigi:MDFMember eigi:EmailmarketingMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-06-30 0001237746 eigi:DirectRevenueFromSubscribersMember eigi:EmailmarketingMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-06-30 0001237746 eigi:WebpresenceMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-06-30 0001237746 eigi:ProfessionalServicesMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-06-30 0001237746 eigi:MDFMember eigi:DomainNameBusinessMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-06-30 0001237746 eigi:DomainParkingMember eigi:EmailmarketingMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-06-30 0001237746 eigi:PremiumDomainsMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-06-30 0001237746 eigi:DomainParkingMember eigi:WebpresenceMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-06-30 0001237746 us-gaap:TransferredOverTimeMember 2018-01-01 2018-06-30 0001237746 eigi:PremiumDomainsMember eigi:WebpresenceMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-06-30 0001237746 eigi:ResellerRevenueMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-06-30 0001237746 srt:ScenarioPreviouslyReportedMember 2018-01-01 2018-03-31 0001237746 us-gaap:DomesticCountryMember 2018-12-31 0001237746 srt:RestatementAdjustmentMember 2017-12-31 0001237746 us-gaap:StateAndLocalJurisdictionMember 2018-12-31 0001237746 us-gaap:StateAdministrationOfTaxationChinaMember 2018-12-31 0001237746 us-gaap:MinistryOfFinanceIndiaMember 2018-12-31 0001237746 us-gaap:TaxAndCustomsAdministrationNetherlandsMember 2018-12-31 0001237746 us-gaap:InlandRevenueSingaporeIRASMember 2018-12-31 0001237746 us-gaap:FacilityClosingMember 2018-12-31 0001237746 us-gaap:FacilityClosingMember 2019-01-01 2019-06-30 0001237746 us-gaap:FacilityClosingMember 2019-06-30 0001237746 us-gaap:AccountingStandardsUpdate201602Member us-gaap:FacilityClosingMember 2019-01-01 0001237746 eigi:A2018RestructuringPlanMember 2018-01-01 2018-01-31 0001237746 eigi:A2019RestructuringPlanMember 2019-01-01 2019-06-30 0001237746 us-gaap:EmployeeSeveranceMember eigi:A2017RestructuringPlanMember 2019-01-01 2019-06-30 0001237746 eigi:A2019RestructuringPlanMember 2019-01-01 2019-01-31 0001237746 us-gaap:EmployeeSeveranceMember eigi:A2019RestructuringPlanMember 2019-06-30 0001237746 us-gaap:FacilityClosingMember eigi:A2018RestructuringPlanMember 2019-01-01 2019-06-30 0001237746 us-gaap:EmployeeSeveranceMember eigi:A2018RestructuringPlanMember 2019-04-01 2019-06-30 0001237746 us-gaap:FacilityClosingMember eigi:A2019RestructuringPlanMember 2019-06-30 0001237746 us-gaap:EmployeeSeveranceMember eigi:A2018RestructuringPlanMember 2019-01-01 2019-06-30 0001237746 us-gaap:FacilityClosingMember eigi:A2019RestructuringPlanMember 2019-04-01 2019-06-30 0001237746 us-gaap:FacilityClosingMember eigi:A2018RestructuringPlanMember 2019-06-30 0001237746 eigi:A2018RestructuringPlanMember 2018-02-01 2018-09-30 0001237746 us-gaap:EmployeeSeveranceMember eigi:A2019RestructuringPlanMember 2019-01-01 2019-06-30 0001237746 eigi:A2019RestructuringPlanMember 2019-04-01 2019-06-30 0001237746 eigi:A2018RestructuringPlanMember 2019-01-01 2019-06-30 0001237746 us-gaap:EmployeeSeveranceMember eigi:A2017RestructuringPlanMember 2019-04-01 2019-06-30 0001237746 eigi:A2017RestructuringPlanMember 2017-01-01 2017-01-31 0001237746 us-gaap:FacilityClosingMember eigi:A2019RestructuringPlanMember 2019-01-01 2019-06-30 0001237746 eigi:A2018RestructuringPlanMember 2019-04-01 2019-06-30 0001237746 eigi:ConstantContactIncMember eigi:A2017RestructuringPlanMember 2017-01-01 2017-01-31 0001237746 eigi:A2017RestructuringPlanMember 2019-04-01 2019-06-30 0001237746 us-gaap:AccountingStandardsUpdate201602Member us-gaap:FacilityClosingMember eigi:A2018RestructuringPlanMember 2019-01-01 0001237746 us-gaap:FacilityClosingMember eigi:A2018RestructuringPlanMember 2019-04-01 2019-06-30 0001237746 us-gaap:EmployeeSeveranceMember eigi:A2018RestructuringPlanMember 2019-06-30 0001237746 us-gaap:EmployeeSeveranceMember eigi:A2017RestructuringPlanMember 2019-06-30 0001237746 eigi:A2017RestructuringPlanMember 2019-01-01 2019-06-30 0001237746 us-gaap:EmployeeSeveranceMember eigi:A2019RestructuringPlanMember 2019-04-01 2019-06-30 0001237746 us-gaap:CostOfSalesMember 2018-01-01 2018-06-30 0001237746 us-gaap:ResearchAndDevelopmentExpenseMember 2019-04-01 2019-06-30 0001237746 us-gaap:SellingAndMarketingExpenseMember 2018-01-01 2018-06-30 0001237746 us-gaap:GeneralAndAdministrativeExpenseMember 2019-04-01 2019-06-30 0001237746 us-gaap:ResearchAndDevelopmentExpenseMember 2018-04-01 2018-06-30 0001237746 us-gaap:SellingAndMarketingExpenseMember 2019-01-01 2019-06-30 0001237746 us-gaap:GeneralAndAdministrativeExpenseMember 2018-01-01 2018-06-30 0001237746 us-gaap:CostOfSalesMember 2019-01-01 2019-06-30 0001237746 us-gaap:ResearchAndDevelopmentExpenseMember 2018-01-01 2018-06-30 0001237746 us-gaap:SellingAndMarketingExpenseMember 2019-04-01 2019-06-30 0001237746 us-gaap:ResearchAndDevelopmentExpenseMember 2019-01-01 2019-06-30 0001237746 us-gaap:CostOfSalesMember 2018-04-01 2018-06-30 0001237746 us-gaap:GeneralAndAdministrativeExpenseMember 2018-04-01 2018-06-30 0001237746 us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-06-30 0001237746 us-gaap:CostOfSalesMember 2019-04-01 2019-06-30 0001237746 us-gaap:SellingAndMarketingExpenseMember 2018-04-01 2018-06-30 0001237746 us-gaap:EmployeeSeveranceMember 2019-06-30 0001237746 us-gaap:EmployeeSeveranceMember 2018-12-31 0001237746 us-gaap:EmployeeSeveranceMember 2019-01-01 2019-06-30 0001237746 eigi:MachadovsEnduranceandMcGeevsConstantContactMember 2018-12-31 0001237746 2017-06-30 2017-06-30 0001237746 eigi:McGeeVsConstantContactMember eigi:ConstantContactIncMember 2015-08-07 2015-08-07 0001237746 eigi:ChiefExecutiveOfficerAndTwoInvestorsMember 2018-01-01 2018-06-30 0001237746 eigi:ChiefExecutiveOfficerAndTwoInvestorsMember 2018-04-01 2018-06-30 0001237746 eigi:ChiefExecutiveOfficerAndTwoInvestorsMember 2019-04-01 2019-06-30 0001237746 eigi:ChiefExecutiveOfficerAndTwoInvestorsMember 2019-01-01 2019-06-30 0001237746 srt:MaximumMember eigi:FormerChiefExecutiveOfficerMember 2019-06-30 0001237746 eigi:FormerChiefExecutiveOfficerMember 2019-06-30 0001237746 eigi:ChiefExecutiveOfficerAndTwoInvestorsMember 2018-12-31 0001237746 eigi:ChiefExecutiveOfficerAndTwoInvestorsMember 2019-06-30 0001237746 us-gaap:ImmediateFamilyMemberOfManagementOrPrincipalOwnerMember 2018-12-31 0001237746 us-gaap:SubsidiaryOfCommonParentMember 2019-01-01 2019-06-30 0001237746 eigi:FormerChiefExecutiveOfficerMember 2018-12-31 0001237746 us-gaap:ImmediateFamilyMemberOfManagementOrPrincipalOwnerMember 2019-01-01 2019-06-30 0001237746 us-gaap:ImmediateFamilyMemberOfManagementOrPrincipalOwnerMember 2018-04-01 2018-06-30 0001237746 us-gaap:ImmediateFamilyMemberOfManagementOrPrincipalOwnerMember 2018-01-01 2018-06-30 0001237746 us-gaap:ImmediateFamilyMemberOfManagementOrPrincipalOwnerMember 2019-04-01 2019-06-30 0001237746 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-06-30 0001237746 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-06-30 0001237746 srt:ConsolidationEliminationsMember 2018-01-01 2018-06-30 0001237746 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-06-30 0001237746 srt:SubsidiaryIssuerMember srt:ReportableLegalEntitiesMember 2018-01-01 2018-06-30 0001237746 srt:SubsidiaryIssuerMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-06-30 0001237746 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-06-30 0001237746 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-06-30 0001237746 srt:ConsolidationEliminationsMember 2019-01-01 2019-06-30 0001237746 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-06-30 0001237746 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-04-01 2018-06-30 0001237746 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-04-01 2018-06-30 0001237746 srt:ConsolidationEliminationsMember 2018-04-01 2018-06-30 0001237746 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-04-01 2018-06-30 0001237746 srt:SubsidiaryIssuerMember srt:ReportableLegalEntitiesMember 2018-04-01 2018-06-30 0001237746 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-06-30 0001237746 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2017-12-31 0001237746 srt:ConsolidationEliminationsMember 2018-06-30 0001237746 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-06-30 0001237746 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2017-12-31 0001237746 srt:SubsidiaryIssuerMember srt:ReportableLegalEntitiesMember 2018-06-30 0001237746 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-06-30 0001237746 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2017-12-31 0001237746 srt:ConsolidationEliminationsMember 2017-12-31 0001237746 srt:SubsidiaryIssuerMember srt:ReportableLegalEntitiesMember 2017-12-31 0001237746 eigi:A10.875Notesdue2024Member 2016-02-29 0001237746 srt:ConsolidationEliminationsMember 2019-04-01 2019-06-30 0001237746 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-04-01 2019-06-30 0001237746 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-04-01 2019-06-30 0001237746 srt:SubsidiaryIssuerMember srt:ReportableLegalEntitiesMember 2019-04-01 2019-06-30 0001237746 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2019-04-01 2019-06-30 0001237746 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-06-30 0001237746 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2019-06-30 0001237746 srt:ConsolidationEliminationsMember 2019-06-30 0001237746 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-06-30 0001237746 srt:SubsidiaryIssuerMember srt:ReportableLegalEntitiesMember 2019-06-30 0001237746 srt:ConsolidationEliminationsMember 2018-12-31 0001237746 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-12-31 0001237746 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-12-31 0001237746 srt:ParentCompanyMember srt:ReportableLegalEntitiesMember 2018-12-31 0001237746 srt:SubsidiaryIssuerMember srt:ReportableLegalEntitiesMember 2018-12-31 eigi:agreement xbrli:shares eigi:reporting_unit eigi:Segment xbrli:pure iso4217:USD xbrli:shares iso4217:USD eigi:repayment eigi:position eigi:claim eigi:defendant
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File Number: 001-36131
 
Endurance International Group Holdings, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
 
46-3044956
(State or Other Jurisdiction of
Incorporation or Organization)
 
(I.R.S. Employer
Identification No.)
10 Corporate Drive,
Suite 300
 
01803
Burlington,
Massachusetts
 
(Address of Principal Executive Offices)
 
(Zip Code)

(781) 852-3200
(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.0001 par value
EIGI
The Nasdaq Global Select Market
 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ý    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

1


Large accelerated filer
ý
  
Accelerated filer
 
¨
Non-accelerated filer
¨
  
Smaller reporting company
 
 
 
 
Emerging growth company
 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  ý
As of August 1, 2019, there were 146,055,237 shares of the issuer’s common stock, $0.0001 par value per share, outstanding.
 

2


TABLE OF CONTENTS
 
 
 
 
Page
PART I. FINANCIAL INFORMATION
 
Item 1. Financial Statements (unaudited)
 
 


3


Endurance International Group Holdings, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share amounts)

December 31, 2018
 
June 30, 2019
Assets

 
(unaudited)
Current assets:

 

Cash and cash equivalents
$
88,644

 
$
90,818

Restricted cash
1,932

 
1,832

Accounts receivable
12,205

 
12,989

Prepaid domain name registry fees
56,779

 
57,326

Prepaid commissions
41,458

 
41,704

Prepaid and refundable taxes
7,235

 
6,517

Prepaid expenses and other current assets
27,855

 
26,411

Total current assets
236,108

 
237,597

Property and equipment—net
92,275

 
88,700

Operating lease right-of-use assets

 
104,210

Goodwill
1,849,065

 
1,848,949

Other intangible assets—net
352,516

 
292,191

Deferred financing costs—net
2,656

 
2,221

Investments
15,000

 
15,000

Prepaid domain name registry fees, net of current portion
11,207

 
11,281

Prepaid commissions, net of current portion
42,472

 
45,160

Other assets
5,208

 
2,778

Total assets
$
2,606,507

 
$
2,648,087

Liabilities and stockholders’ equity

 

Current liabilities:

 

Accounts payable
$
12,449

 
$
14,933

Accrued expenses
79,279

 
64,774

Accrued taxes
2,498

 
2,418

Accrued interest
25,259

 
24,483

Deferred revenue
371,758

 
376,046

Operating lease liabilities—short term

 
22,483

Current portion of notes payable
31,606

 
31,606

Current portion of financed equipment
8,379

 
4,583

Deferred consideration—short term
2,425

 
1,408

Other current liabilities
3,147

 
2,319

Total current liabilities
536,800

 
545,053

Long-term deferred revenue
96,140

 
99,249

Operating lease liabilities—long term

 
90,989

Notes payable—long term, net of original issue discounts of $21,349 and $19,151 and deferred financing costs of $31,992 and $28,919, respectively
1,770,055

 
1,725,326

Deferred tax liability
16,457

 
18,785

Deferred consideration—long term
1,364

 

Other liabilities
11,237

 
6,460

Total liabilities
2,432,053

 
2,485,862

Stockholders’ equity:

 

Preferred Stock—par value $0.0001; 5,000,000 shares authorized; no shares issued or outstanding

 

Common Stock—par value $0.0001; 500,000,000 shares authorized; 143,444,515 and 145,741,251 shares issued at December 31, 2018 and June 30, 2019, respectively; 143,444,178 and 145,741,251 outstanding at December 31, 2018 and June 30, 2019, respectively
14

 
14

Additional paid-in capital
961,235

 
979,626

Accumulated other comprehensive loss
(3,211
)
 
(4,115
)
Accumulated deficit
(783,584
)
 
(813,300
)
Total stockholders’ equity
174,454

 
162,225

Total liabilities and stockholders’ equity
$
2,606,507

 
$
2,648,087

See accompanying notes to consolidated financial statements.

4


Endurance International Group Holdings, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(unaudited)
(in thousands, except share and per share amounts)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018

2019
 
2018
 
2019
Revenue
$
287,770


$
278,204

 
$
579,126

 
$
558,887

Cost of revenue (including impairment of $17,892 for the three and six months ended June 30, 2019)
130,746


139,587

 
264,652

 
263,441

Gross profit
157,024


138,617

 
314,474

 
295,446

Operating expense:
 
 
 
 
 
 
 
Sales and marketing
66,546


65,490

 
133,902

 
132,078

Engineering and development
21,959


25,348

 
41,876

 
49,042

General and administrative
30,744


31,124

 
69,519

 
62,517

Total operating expense
119,249


121,962

 
245,297

 
243,637

Income from operations
37,775


16,655

 
69,177

 
51,809

Other income (expense):



 

 

Interest income
227


314

 
431

 
605

Interest expense
(38,346
)

(37,037
)
 
(74,396
)
 
(74,251
)
Total other expense—net
(38,119
)

(36,723
)
 
(73,965
)
 
(73,646
)
Loss before income taxes and equity earnings of unconsolidated entities
(344
)

(20,068
)
 
(4,788
)
 
(21,837
)
Income tax (benefit) expense
(946
)

6,160

 
(2,889
)
 
7,879

Income (loss) before equity earnings of unconsolidated entities
602


(26,228
)
 
(1,899
)
 
(29,716
)
Equity (income) loss of unconsolidated entities, net of tax
(25
)


 
2

 

Net income (loss)
$
627


$
(26,228
)
 
$
(1,901
)
 
$
(29,716
)
Comprehensive income (loss):



 

 

Foreign currency translation adjustments
(2,425
)

348

 
(1,845
)
 
(53
)
Unrealized gain (loss) on cash flow hedge, net of tax (expense) benefit of ($45) and ($370) for the three and six months ended June 30, 2018, respectively, and ($35) and $269 for the three and six months ended June 30, 2019, respectively
144


110

 
1,184

 
(851
)
Total comprehensive loss
$
(1,654
)

$
(25,770
)
 
$
(2,562
)
 
$
(30,620
)
Basic net income (loss) per share attributable to Endurance International Group Holdings, Inc.
$
0.00


$
(0.18
)
 
$
(0.01
)
 
$
(0.21
)
Diluted net income (loss) per share attributable to Endurance International Group Holdings, Inc.
$
0.00


$
(0.18
)
 
$
(0.01
)
 
$
(0.21
)
Weighted-average common shares used in computing net income (loss) per share:
 
 
 
 
 
 
 
Basic
142,340,561

 
145,308,823

 
141,356,567

 
144,414,929

Diluted
144,702,002

 
145,308,823

 
141,356,567

 
144,414,929

See accompanying notes to consolidated financial statements.

5


Endurance International Group Holdings, Inc.
Consolidated Statements of Changes in Stockholders’ Equity
(in thousands, except share amounts)
(unaudited)
 
Common Stock
 
Additional
Paid-in
Capital
 
Accumulated
Other
Comprehensive
(Loss) Gain
 
Accumulated
Deficit
 
Total
Stockholders’
Equity
 
Number
 
Amount
 
Balance—December 31, 2017
140,190,695

 
$
14

 
$
931,033

 
$
(541
)
 
$
(847,501
)
 
$
83,005

Vesting of restricted shares
262,454

 

 

 

 

 

Exercise of stock options
4,338

 

 
25

 

 

 
25

Other comprehensive gain (loss)

 

 

 
1,621

 

 
1,621

Adjustment to beginning retained earnings resulting from adoption of ASC 606, net of tax impact of $7.0 million

 

 

 

 
59,383

 
59,383

Net loss

 

 

 

 
(2,528
)
 
(2,528
)
Reclassification of stock-compensation liability award

 

 
250

 

 

 
250

Stock-based compensation

 

 
6,992

 

 

 
6,992

Balance—March 31, 2018
140,457,487

 
14

 
938,300

 
1,080

 
(790,646
)
 
148,748

Vesting of restricted shares
2,342,606

 

 

 

 

 

Exercise of stock options
67,899

 

 
431

 

 

 
431

Other comprehensive gain (loss)

 

 

 
(2,281
)
 

 
(2,281
)
Net income

 

 

 

 
627

 
627

Stock-based compensation

 

 
7,390

 

 

 
7,390

Balance—June 30, 2018
142,867,992

 
$
14

 
$
946,121

 
$
(1,201
)
 
$
(790,019
)
 
$
154,915

 
Common Stock
 
Additional
Paid-in
Capital
 
Accumulated
Other
Comprehensive
(Loss) Gain
 
Accumulated
Deficit
 
Total
Stockholders’
Equity
 
Number
 
Amount
 
Balance—December 31, 2018
143,444,178

 
$
14

 
$
961,235

 
$
(3,211
)
 
$
(783,584
)
 
$
174,454

Vesting of restricted shares
116,526

 

 

 

 

 

Exercise of stock options
892

 

 
5

 

 

 
5

Other comprehensive gain (loss)

 

 

 
(1,362
)
 

 
(1,362
)
Net loss

 

 

 

 
(3,488
)
 
(3,488
)
Stock-based compensation

 

 
9,016

 

 

 
9,016

Balance—March 31, 2019
143,561,596

 
14

 
970,256

 
(4,573
)
 
(787,072
)
 
178,625

Vesting of restricted shares
2,176,738

 

 

 

 

 

Exercise of stock options
2,918

 

 
16

 

 

 
16

Other comprehensive gain (loss)

 

 

 
458

 

 
458

Net loss

 

 

 

 
(26,228
)
 
(26,228
)
Stock-based compensation

 

 
9,354

 

 

 
9,354

Balance—June 30, 2019
145,741,252

 
$
14

 
$
979,626

 
$
(4,115
)
 
$
(813,300
)
 
$
162,225


See accompanying notes to consolidated financial statements.

6


Endurance International Group Holdings, Inc.
Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
 
 
Six Months Ended June 30,
 
 
2018
 
2019
Cash flows from operating activities:
 

 

Net loss
 
$
(1,901
)
 
$
(29,716
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 

 

Depreciation of property and equipment
 
24,864

 
22,105

Amortization of other intangible assets
 
51,713

 
42,469

Impairment of long lived assets
 

 
17,892

Amortization of deferred financing costs
 
2,986

 
3,509

Amortization of net present value of deferred consideration
 
251

 
120

Amortization of original issue discounts
 
2,126

 
2,198

Stock-based compensation
 
14,382

 
18,370

Deferred tax expense (benefit)
 
(4,484
)
 
2,627

Loss on sale of assets
 
261

 
136

Loss from unconsolidated entities
 
2

 

Financing costs expensed
 
1,228

 

Loss on early extinguishment of debt
 
331

 

Changes in operating assets and liabilities, net of acquisitions:
 
 
 

Accounts receivable
 
3,740

 
(793
)
Prepaid and refundable taxes
 
(1,102
)
 
725

Prepaid expenses and other current assets
 
(8,668
)
 
2,328

Leases right-of-use asset, net
 

 
653

Accounts payable and accrued expenses
 
(11,670
)
 
(15,135
)
Deferred revenue
 
8,193

 
7,241

Net cash provided by operating activities
 
82,252

 
74,729

Cash flows from investing activities:
 

 

Purchases of property and equipment
 
(13,381
)
 
(16,164
)
Net cash used in investing activities
 
(13,381
)
 
(16,164
)
Cash flows from financing activities:
 
 
 

Proceeds from issuance of term loan and notes, net of original issue discounts
 
1,580,305

 

Repayments of term loans
 
(1,630,693
)
 
(50,000
)
Payment of financing costs
 
(1,295
)
 

Payment of deferred consideration
 
(4,196
)
 
(2,500
)
Principal payments on financed equipment
 
(3,909
)
 
(3,861
)
Proceeds from exercise of stock options
 
456

 
22

Net cash used in financing activities
 
(59,332
)
 
(56,339
)
Net effect of exchange rate on cash and cash equivalents and restricted cash
 
(1,488
)
 
(152
)
Net increase (decrease) in cash and cash equivalents and restricted cash
 
8,051

 
2,074

Cash and cash equivalents and restricted cash:
 

 

Beginning of period
 
69,118

 
90,576

End of period
 
$
77,169

 
$
92,650

Supplemental cash flow information:
 

 

Interest paid
 
$
72,461

 
$
68,353

Income taxes paid (received)
 
$
2,122

 
$
724

See accompanying notes to consolidated financial statements.

7


Endurance International Group Holdings, Inc.
Notes to Consolidated Financial Statements
(unaudited)
1. Nature of Business
Formation and Nature of Business
Endurance International Group Holdings, Inc. (“Holdings”) is a Delaware corporation, which, together with its wholly owned subsidiary, EIG Investors Corp. (“EIG Investors”), its primary operating subsidiary, The Endurance International Group, Inc. (“EIG”), and other subsidiaries of EIG, collectively form the “Company.” The Company is a leading provider of cloud-based platform solutions designed to help small- and medium-sized businesses succeed online.
EIG and EIG Investors were incorporated in April 1997 and May 2007, respectively, and Holdings was originally formed as a limited liability company in October 2011 in connection with the acquisition of a controlling interest in EIG Investors, EIG and EIG's subsidiaries by investment funds and entities affiliated with Warburg Pincus and Goldman, Sachs & Co. ("Goldman") on December 22, 2011. On November 7, 2012, Holdings reorganized as a Delaware limited partnership and on June 25, 2013, Holdings converted into a Delaware C-corporation and changed its name to Endurance International Group Holdings, Inc.
2. Summary of Significant Accounting Policies
Basis of Preparation
The accompanying consolidated financial statements, which include the accounts of Holdings and its subsidiaries, have been prepared using accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany transactions were eliminated on consolidation.
Although the Company believes the disclosures included herein are adequate to ensure that the consolidated financial statements are fairly presented, certain information and footnote disclosures to the financial statements have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, the consolidated financial statements and the footnotes included herein should be read in conjunction with the audited financial statements and the footnotes included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018.
Segment Information
Operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker ("CODM"). The Company has determined that its chief executive officer is the Company's CODM.
The Company has identified three reportable segments, web presence, domains and email marketing. The Company has determined that it does not satisfy aggregation criteria for these operating segments, and that each segment meets the quantitative threshold of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 280, Segment Reporting. Therefore, all three operating segments are reportable segments.
The Company's segments share certain resources, primarily related to sales and marketing, engineering and general and administrative functions. Management allocates these costs to each respective segment based on a consistently applied methodology, primarily based on a percentage of revenue.
Use of Estimates
U.S. GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. These estimates, judgments and assumptions used in preparing the accompanying consolidated financial statements are based on the relevant facts and circumstances as of the date of the consolidated financial statements. Although the Company regularly assesses these estimates, judgments and assumptions used in preparing the consolidated financial statements, actual results could differ from those estimates. Changes in estimates are recorded in the period in which they become known. The more significant estimates reflected in these consolidated financial statements include estimates of fair value of assets acquired and liabilities assumed under purchase accounting related to the Company’s acquisitions and when evaluating goodwill and long-lived assets for potential impairment, the estimated useful lives of intangible and depreciable assets, revenue recognition for multiple-element arrangements, stock-based compensation, contingent consideration, derivative instruments, certain accruals, reserves and deferred taxes.

8


Unaudited Interim Financial Information
The accompanying interim consolidated balance sheet as of June 30, 2019, and the related consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2018 and 2019, the consolidated statements of cash flows for the six months ended June 30, 2018 and 2019, the consolidated statements of changes in stockholders' equity for the three and six months ended June 30, 2018 and 2019, and the notes to consolidated financial statements are unaudited. These unaudited consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements. The unaudited consolidated financial statements include, in the opinion of management, all adjustments, consisting only of normal recurring adjustments that are necessary for a fair presentation of the Company’s financial position as of June 30, 2019, results of operations for the three and six months ended June 30, 2018 and 2019, cash flows for the six months ended June 30, 2018 and 2019, and changes in stockholders' equity for the three and six months ended June 30, 2018 and 2019. The results in the consolidated statements of operations and comprehensive loss are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2019.
Cash Equivalents
Cash and cash equivalents include all highly liquid investments with remaining maturities of three months or less at the date of purchase.
Restricted Cash
Restricted cash is composed of certificates of deposit and cash held by merchant banks and payment processors, which provide collateral against any chargebacks, fees, or other items that may be charged back to the Company by credit card companies and other merchants, and collateral for certain facility leases.
Accounts Receivable
Accounts receivable is primarily composed of cash due from credit card companies for unsettled transactions charged to subscribers’ credit cards. As these amounts reflect authenticated transactions that are fully collectible, the Company does not maintain an allowance for doubtful accounts. The Company also accrues for earned referral fees and commissions, which are governed by reseller or affiliate agreements, when the amount is reasonably estimable.
Prepaid Domain Name Registry Fees
Prepaid domain name registry fees represent amounts that are paid in full at the time a domain is registered by one of the Company’s registrars on behalf of a customer. The registry fees are recognized on a straight-line basis over the term of the domain registration period.
Fair Value of Financial Instruments
The carrying amounts of the Company's financial instruments, which include cash equivalents, accounts receivable, accounts payable and certain accrued expenses, approximate their fair values due to their short maturities. The fair value of the Company's notes payable is based on the borrowing rates currently available to the Company for debt with similar terms and average maturities and approximates their carrying value.
Derivative Instruments and Hedging Activities
FASB ASC 815, Derivatives and Hedging, provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit risk-related contingent features in derivative instruments.
As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to

9


economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.
In accordance with the FASB’s fair value measurement guidance in FASB Accounting Standards Update ("ASU") No. 2011-4, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.
Property and Equipment
Property and equipment is recorded at cost, or at fair value if the property and equipment is acquired in an acquisition. The Company also capitalizes the direct costs of constructing additional computer equipment for internal use, as well as upgrades to existing computer equipment which extend the useful life, capacity or operating efficiency of the equipment. Capitalized costs include the cost of materials, shipping and taxes. Materials used for repairs and maintenance of computer equipment are expensed and recorded as a cost of revenue. Materials on hand and construction-in-process are recorded as property and equipment. Assets recorded under equipment financing are depreciated over the lease term. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets as follows: 
Building
 
Thirty-five years
Software
 
Two to three years
Computers and office equipment
 
Three years
Furniture and fixtures
 
Five years
Leasehold improvements
 
Shorter of useful life or remaining term of the lease

Software Development Costs
The Company accounts for software development costs for internal-use software under the provisions of FASB ASC 350-40, Internal-Use Software. Accordingly, certain costs to develop internal-use computer software are capitalized, provided these costs are expected to be recoverable. During the three and six months ended June 30, 2018, the Company capitalized internal-use software development costs of $2.7 million and $4.3 million, respectively. During the three and six months ended June 30, 2019, the Company capitalized internal-use software development costs of $4.1 million and $7.3 million, respectively.
Goodwill
Goodwill relates to amounts that arose in connection with the Company’s various business combinations and represents the difference between the purchase price and the fair value of the identifiable intangible and tangible net assets when accounted for using the purchase method of accounting. Goodwill is not amortized, but is subject to periodic review for impairment. Events that would indicate impairment and trigger an interim impairment assessment include, but are not limited to, current economic and market conditions, including a decline in the equity value of the Company's business, a significant adverse change in agreements that would materially affect reported operating results, business climate or operational performance of the business and an adverse action or assessment by a regulator. Additionally, a reorganization or change in the number of reporting units could result in the reassignment of goodwill between reporting units and may trigger an impairment assessment.
In accordance with ASU No. 2011-08, Intangibles—Goodwill and Other (Topic 350), the Company is required to review goodwill by reporting unit for impairment at least annually or more often if there are indicators of impairment present. Under U.S. GAAP, a reporting unit is either the equivalent of, or one level below, an operating segment. The Company performs its annual goodwill test as of October 31 of each fiscal year. The Company has identified a total of ten reporting units, and goodwill has been allocated to six of these reporting units. The Company also early adopted the provisions of ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350), which eliminates the second step of the goodwill impairment test. As a result, the Company's goodwill impairment test includes only one step, which is a comparison of the carrying value of each reporting unit to its fair value, and any excess carrying value, up to the amount of goodwill allocated, is impaired. Goodwill has been allocated to each reporting unit in accordance with ASC 350-20-40, which requires that goodwill be allocated based on the relative fair values of each reporting unit.
The carrying value of each reporting unit is based on the assignment of the appropriate assets and liabilities to each reporting unit. Assets and liabilities are assigned to each reporting unit if the assets or liabilities are employed in the operations of the reporting unit and the asset and liability is considered in the determination of the reporting unit's fair value. Certain assets and liabilities are shared by multiple reporting units, and are allocated to each reporting unit based on its relative size, primarily based on revenue.

10


The fair value of each reporting unit is determined by the income approach and the market approach. For the income approach, fair value is determined based on the present value of estimated future after-tax cash flows, discounted at an appropriate risk adjusted rate. The Company derives its discount rates using a capital asset pricing model and by analyzing published rates for industries relevant to the reporting units to estimate the weighted-average cost of capital. The Company uses discount rates that are commensurate with the risks and uncertainty inherent in the business and in internally developed forecasts. For fiscal year 2018, the Company used a discount rate of 10.0% for all but one of its reporting units. The Company also performed sensitivity analysis on its discount rates. The Company uses internal forecasts to estimate future after-tax cash flows, which include an estimate of long-term future growth rates based on the Company's view of the long-term outlook for each reporting unit. Actual results may differ from those assumed in the Company's forecasts.
For the market approach, the Company utilizes two different approaches: market multiples for publicly traded companies, and market multiples based on the acquisition value of comparable companies that were sold.
For the fiscal year 2018 goodwill impairment analysis, the Company compared the fair value from the income approach to the two market approaches. For three of the Company's reporting units, which represent approximately 95% of the Company's goodwill, the fair value derived from the income approach was consistent with the fair value derived from the two market approaches. The Company established the fair value for these reporting units based on the average fair value from all three valuation approaches. For two of the Company's reporting units, which represent approximately 3% of the Company's goodwill, the Company based their fair value entirely upon the income approach, as these two reporting units are experiencing declining cash flows and are expected to continue to experience declines over time. The fair values from the income approach for these two reporting units were materially below the fair values derived from both market approaches. The goodwill allocated to these two reporting units is approximately $64.2 million as of December 31, 2018. Although the Company does not expect an impairment of goodwill for these two reporting units in the near term, the Company expects that cash flows will continue to decline which could result in goodwill impairment charges for these two reporting units at some point in the future. For one of the reporting units, which represents approximately 2% of the Company's goodwill, the fair values derived from the market approaches were much lower than the income approach using a discount rate of 10%. The Company determined that more risk was present in the projected future cash flows of this reporting unit as compared to the Company's other reporting units and determined that a discount rate of 17% was appropriate. The fair value of this reporting unit under the income approach at a discount rate of 17% was consistent with the fair values determined under the two market approaches. The Company established fair value for this reporting unit based on the average fair value from all three valuation approaches.
As of the test date of October 31, 2018, the fair value for all reporting units was higher than their respective carrying values, and no impairment has been recorded. No triggering events were identified between the October 31, 2018 test and December 31, 2018.
Goodwill as of December 31, 2018 was $1,849.1 million. The carrying value of goodwill that was allocated to the domain, email marketing and web presence reporting segments was $29.9 million, $604.3 million and $1,214.9 million, respectively. The fair value of all reporting units with goodwill at December 31, 2018 exceeds each reporting unit's carrying value by at least 20%.
Goodwill as of June 30, 2019 was $1,848.9 million. The carrying value of goodwill that was allocated to the domain, email marketing and web presence reporting segments was $29.9 million, $604.3 million and approximately $1,214.8 million, respectively. For the three and six months ended June 30, 2019, no impairment triggering events were identified and no impairment has been recorded.
Long-Lived Assets
The Company’s long-lived assets consist primarily of intangible assets, including acquired subscriber relationships, trade names, intellectual property, developed technology and domain names available for sale. The Company also has long-lived tangible assets, primarily consisting of property and equipment. The majority of the Company’s intangible assets are recorded in connection with its various acquisitions. The Company’s intangible assets are recorded at fair value at the time of their acquisition. The Company amortizes intangible assets over their estimated useful lives.
Determination of the estimated useful lives of the individual categories of intangible assets is based on the nature of the applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with finite lives other than developed technology is recognized in accordance with their estimated projected cash flows.
The Company evaluates long-lived intangible and tangible assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If indicators of impairment are present and undiscounted future cash flows are less than the carrying amount, the fair value of the assets is determined and compared to the carrying value. If the fair value is less than the carrying value, then the carrying value of the asset is reduced to the estimated fair value and an impairment loss is charged to expense in the period the impairment is identified.

11


Indefinite life intangible assets include domain names that are available for sale which are recorded at the cost to acquire. These assets are not being amortized and are being tested for impairment annually and whenever events or changes in circumstance indicate that their carrying value may not be recoverable. When a domain name is sold, the Company records the cost of the domain in cost of revenue.
During the three and six months ended June 30, 2019, the Company recognized an impairment charge of $17.9 million relating primarily to premium domain name intangible assets acquired in 2014, which was recorded in cost of revenue in the consolidated statement of operations and comprehensive loss. The impairment resulted from recent market conditions that have adversely impacted cash flows from these assets, and these market conditions are expected to continue. The Company valued its premium domain name assets based on discounted projected cash flows from these assets using a discount rate of 11.6%, which resulted in an impairment of $16.2 million. The balance of the impairment charge was primarily related to developed technology intangible assets associated with the premium domain business which were valued using a relief from royalty approach. During the three and six months ended June 30, 2018, the Company recorded no impairment charge associated with these intangible assets.
Revenue Recognition
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), or ASC 606, which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. Since then, the FASB has also issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606), Principals versus Agent Considerations, ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing, and ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments, which further elaborate on the original ASU No. 2014-09. The Company adopted the guidance in ASC 606 on January 1, 2018. Revenue is recognized when control of the promised products or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to for those products and services. In general, the Company determines revenue recognition through the following steps:
Identification of the contract, or contracts, with the customer
Identification of the performance obligations in the contract
Determination of the transaction price
Allocation of the transaction price to the performance obligations in the contract
Recognition of revenue when, or as, the Company satisfies a performance obligation
The Company provides cloud-based subscription services, which include web hosting and related add-ons, search engine optimization ("SEO") services, domain registration services and email marketing.
Web hosting gives subscribers access to an environment where the Company hosts a customer’s website. The related contract terms are generally for one year, but can range from 30 days to 3 years. Web hosting services are typically sold in bundled offerings that include web hosting, domain registration services and various add-ons. The Company recognizes revenue for web hosting and domain registration services over the term of the contract.
The main add-on services related to web hosting are domain privacy, secure sockets layer ("SSL") security, site backup and restoration, and web builder tools. These services may be included in web hosting bundles, or they may be purchased on a standalone basis. Certain add-on services are provided by third parties. In cases where the Company is acting as an agent for the sale of third-party add-on services, the Company recognizes revenue on a net basis at the time of sale. In cases where the Company is acting as a principal for the sale of third-party add-on services (i.e., the Company has the primary responsibility to provide specific goods or services, it has discretion to establish prices and it may assume inventory risk), the Company recognizes revenue on a gross basis over the term of the contract. The revenue for Company-provided add-on services is primarily recognized over the term of the contract.
SEO services are monthly subscriptions that provide a customer with increased traffic to their website over the term of the subscription. Revenue from SEO services is recognized over the monthly term of the contract.
In the case of domain registration services, the Company is an accredited registrar and can provide registration services to the customer, or it can select an accredited third-party registrar to perform these duties. Domain registration services are generally annual subscriptions, but can cover multiple years. Revenue for these services is recognized over time.
Email marketing services provide subscribers with a cloud-based platform that can send broadcast emails to a customer list managed by the subscriber. Pricing is based on contact list volume from the prior monthly period, which determines the contractual billing price for the upcoming month. Revenue for this service is recognized over the monthly term of the contract.
Non-subscription based services include certain professional services, primarily website design or re-design services, marketing development fund ("MDF") revenue, premium domain names and domain parking services.

12


Website design and re-design services are recognized when the service is complete.
Marketing development funds consist of commissions earned by the Company when a third party sells its products or services directly to the Company’s subscribers, and advertising revenue for third-party ads placed on Company websites. The Company records revenue when the service is provided and calculates it based on the contractual revenue share arrangement or over the term of the advertisement.
Domain parking allows the Company to monetize certain of its premium domain names by loaning them to specialized third parties that generate advertising revenue from these parked domains on a pay per click ("PPC") basis. Revenue is recognized when earned and calculated based on the revenue share arrangement with the third party.
Revenue from the sale of premium domains is recognized when persuasive evidence of an arrangement to sell such domains exists and delivery of an authorization key to access the domain name has occurred. Premium domain names are paid for in advance prior to the delivery of the domain name.
The contracts that the Company enters into typically do not contain any variable or non-cash considerations.
The Company maintains a reserve for refunds and chargebacks related to revenue that has been recognized and is expected to be refunded, as calculated based on observed historical trends. The Company had a refund and chargeback reserve of $0.4 million and $0.3 million as of December 31, 2018 and June 30, 2019, respectively. The portion of deferred revenue that was expected to be refunded at December 31, 2018 and June 30, 2019 was $2.2 million and $1.8 million, respectively. Based on refund history, approximately 83% of all refunds happen in the same fiscal month that the contract starts or renews, and approximately 95% of all refunds happen within 45 days of the contract start or renewal date.
The Company did not apply any practical expedients during its adoption of ASC 606. The Company elected to use the portfolio method in the calculation of the deferred contract assets.
Contracts with Multiple Performance Obligations
A considerable amount of the Company’s revenue is generated from transactions that are contracts with customers that may include web hosting plans, domain name registrations, and other cloud-based products and services. In these cases, the Company determines whether the products and services are distinct performance obligations that should be accounted for separately versus together. The Company allocates revenue to each performance obligation based on its relative standalone selling price, generally based on the price charged to customers. Web hosting services, domain name registrations, and other cloud-based products and services have distinct performance obligations and are often sold separately. If the promise is not distinct and therefore not a performance obligation, then the total transaction amount is allocated to the identified performance obligation based on a relative selling price hierarchy. When multiple performance obligations are included in a contract, the total transaction amount for the contract is allocated to the performance obligations based on a relative selling price hierarchy. The Company determines the relative selling price for a performance obligation based on standalone selling price (“SSP”). The Company determines SSP by considering its observed standalone selling prices, competitive prices in the marketplace and management judgment; these standalone selling prices may vary depending upon the particular facts and circumstances related to each deliverable. The Company analyzes the standalone selling prices used in its allocation of transaction amount, at a minimum, on a quarterly basis.
Deferred Revenue
The Company records deferred revenue when cash payments are received or are due in advance of the Company’s performance, including amounts that are refundable.
The following table provides a reconciliation of the Company's deferred revenue as of June 30, 2019:
 
Short-term
 
Long-term
 
(in thousands)
Balance at December 31, 2018
$
371,758

 
$
96,140

Recognition of the beginning deferred revenue into revenue, as a result of performance obligations satisfied
(257,178
)
 

Cash received in advance during the period
461,848

 
104,281

Recognition of cash received in the period into revenue, as a result of performance obligations satisfied
(301,708
)
 

Impact of foreign exchange rates
154

 

Reclassification between short-term and long-term
101,172

 
(101,172
)
Balance at June 30, 2019
$
376,046

 
$
99,249



13


The difference between the opening and closing balances of the Company’s deferred liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment. During the six months ended June 30, 2019, the Company recognized $257.2 million and $0.0 million, respectively, from beginning deferred revenue current and long-term balances existing at December 31, 2018. The Company did not recognize any revenue from performance obligations satisfied in prior periods.
The following table provides the remaining performance obligation amounts as of June 30, 2019. These amounts are equivalent to the ending deferred revenue balance of $475.3 million, which includes both short and long-term amounts:
 
Web presence
 
Email marketing
 
Domain
 
Total
 
(in thousands)
Remaining performance obligation, short-term
$
260,898

 
$
55,317

 
$
59,831

 
$
376,046

Remaining performance obligation, long-term
84,119

 
3

 
15,127

 
99,249

Total
$
345,017

 
$
55,320

 
$
74,958

 
$
475,295


This backlog of revenue related to future performance obligations is prepaid by customers and supported by executed contracts with customers. The Company has established a reserve of $0.3 million for refunds and chargebacks, 95% of which is expected to materialize in the first 45 days after the contract start date or renewal date. The remainder of the deferred revenue is expected to be recognized in future periods.
Deferred Customer Acquisition Costs
As a result of the implementation of ASC 606, the Company now capitalizes the incremental costs directly related to obtaining and fulfilling a contract (such as sales commissions and certain direct sales and marketing success-based costs), if these costs are expected to be recovered. These costs are amortized over the period the services are transferred to the customer, which is estimated based on customer churn rates for various segments of the business. The Company includes only those incremental costs that would not have been incurred if the contracts had not been entered into:
 
Short-term
 
Long-term
 
(in thousands)
Balance at December 31, 2018
$
41,458

 
$
42,472

Deferred customer acquisition costs incurred in the period
12,092

 
18,780

Amounts recognized as expense in the period
(27,945
)
 

Impact of foreign exchange rates
(63
)
 
70

Reclassification between short-term and long-term
16,162

 
(16,162
)
Balance at June 30, 2019
$
41,704

 
$
45,160


As of June 30, 2019, the Company had a total of $73.0 million, $12.3 million and $1.6 million in deferred assets relating to costs incurred to obtain or fulfill contracts in its web presence, email marketing and domain segments, respectively. These deferred assets consist entirely of recoverable, specific, success-based sales commissions. During the six months ended June 30, 2019, the Company recognized total amortization costs related to the above items of approximately $23.6 million, $3.1 million, and $1.3 million in its web presence, email marketing and domain segments, respectively.

Significant Judgments
The Company sells a number of third-party cloud-based services to enhance a subscriber’s overall web hosting experience. The Company exercises considerable judgment to determine if it is the principal or agent in each of these arrangements, and in some instances, has concluded that it is an agent of the third party and recognizes revenue at the time of the subscriber purchase in an amount that is net of the revenue share payable to the third party.
The Company exercises judgment to determine the standalone selling price for each distinct performance obligation. In instances where the standalone selling price is not directly observable, such as when the Company does not sell the product or service separately, the Company determines the standalone selling price using information that may include a competitive market assessment approach and other observable inputs. The Company typically has more than one standalone selling price for individual products and services.
Judgment is required to determine whether particular types of sales and marketing costs incurred, including commissions, are incremental and recoverable costs incurred to obtain and fulfill the customer contract. In addition, judgment is required to determine the life of the customer over which deferred customer acquisition costs are amortized.

14


Income Taxes
Income taxes are accounted for in accordance with FASB ASC 740, Accounting for Income Taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
ASC 740 clarifies the accounting for income taxes by prescribing a minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is more likely than not to be realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company had unrecognized tax benefits at December 31, 2018 and June 30, 2019 of $4.4 million and $5.3 million, respectively.
The Company records interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. During the three and six months ended June 30, 2018 and 2019, the Company recognized an immaterial amount of interest and penalties related to unrecognized tax benefits.
Stock-Based Compensation
The Company may issue restricted stock units, restricted stock awards and stock options which vest upon the satisfaction of a performance condition and/or a service condition. The Company follows the provisions of FASB ASC 718, Compensation—Stock Compensation, which requires employee stock-based payments to be accounted for under the fair value method. Under this method, the Company is required to record compensation cost based on the estimated fair value for stock-based awards granted over the requisite service periods for the individual awards, which generally equals the vesting periods, net of estimated forfeitures. The Company uses the straight-line amortization method for recognizing stock-based compensation expense. In addition, for stock-based awards where vesting is dependent upon achieving certain performance goals, the Company estimates the likelihood of achieving the performance goals against established performance targets.
The Company estimates the fair value of employee stock options on the date of grant using the Black-Scholes option-pricing model, which requires the use of highly subjective estimates and assumptions. For restricted stock awards and restricted stock units granted, the Company estimates the fair value of each restricted stock award or restricted stock unit based on the closing trading price of its common stock on the date of grant.
Net Income (Loss) per Share
The Company considered FASB ASC 260-10, Earnings per Share, which requires the presentation of both basic and diluted earnings per share in the consolidated statements of operations and comprehensive loss. The Company’s basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding for the period, and, if there are dilutive securities, diluted income per share is computed by including common stock equivalents which includes shares issuable upon the exercise of stock options, net of shares assumed to have been purchased with the proceeds, using the treasury stock method.
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018

2019
 
2018
 
2019
 
(unaudited)
(in thousands, except share amounts and per share data)
Net income (loss)
$
627

 
$
(26,228
)
 
$
(1,901
)
 
$
(29,716
)
Net income (loss) per share attributable to Endurance International Group Holdings, Inc.:
 
 
 
 
 
 
 
Basic
$