GODADDY INC., 10-Q filed on 5/14/2015
Quarterly Report
Document and Entity Information Document
3 Months Ended
Mar. 31, 2015
May 8, 2015
Class A Common Stock
May 8, 2015
Class B Common Stock
Document Information [Line Items]
 
 
 
Entity Registrant Name
GoDaddy Inc. 
 
 
Entity Central Index Key
0001609711 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Non-accelerated Filer 
 
 
Document Type
10-Q 
 
 
Document Period End Date
Mar. 31, 2015 
 
 
Document Fiscal Year Focus
2015 
 
 
Document Fiscal Period Focus
Q1 
 
 
Amendment Flag
false 
 
 
Entity Common Stock, Shares Outstanding
 
64,932,893 
90,398,474 
Balance Sheets (USD $)
Mar. 31, 2015
Dec. 31, 2014
GoDaddy Inc
 
 
Current assets:
 
 
Cash and cash equivalents
$ 6 
$ 1 
Total assets
6 
1 
Current liabilities:
 
 
Commitments and contingencies
   
   
Stockholder’s equity
 
 
Common stock and additional paid-in capital (see Note 3)
6 
1 
Total stockholder’s equity
6 
1 
Desert Newco, LLC
 
 
Current assets:
 
 
Cash and cash equivalents
196,800,000 
139,000,000 
Short-term investments
1,100,000 
3,000,000 
Accounts receivable
5,000,000 
3,500,000 
Registry deposits
18,700,000 
17,800,000 
Prepaid domain name registry fees
288,200,000 
272,800,000 
Prepaid expenses and other current assets
25,400,000 
24,800,000 
Total current assets
535,200,000 
460,900,000 
Property and equipment, net
222,500,000 
220,900,000 
Prepaid domain name registry fees, net of current portion
159,400,000 
152,800,000 
Goodwill
1,661,400,000 
1,661,200,000 
Intangible assets, net
727,300,000 
749,700,000 
Other assets
23,600,000 
19,300,000 
Total assets
3,329,400,000 
3,264,800,000 
Current liabilities:
 
 
Accounts payable
35,800,000 
31,900,000 
Accrued expenses
123,600,000 
114,500,000 
Current portion of deferred revenue
881,800,000 
821,400,000 
Current portion of long-term debt
4,900,000 
5,000,000 
Total current liabilities
1,046,100,000 
972,800,000 
Deferred revenue, net of current portion
455,800,000 
429,200,000 
Long-term debt, net of current portion
1,413,100,000 
1,413,900,000 
Other long-term liabilities
38,300,000 
38,500,000 
Commitments and contingencies
   
   
Members’ equity:
 
 
Members’ interest
1,095,300,000 
1,086,200,000 
Accumulated deficit
(719,200,000)
(675,800,000)
Total members’ equity
376,100,000 
410,400,000 
Total liabilities and members’ equity
$ 3,329,400,000 
$ 3,264,800,000 
Condensed Consolidated Statements of Operations (Desert Newco, LLC, USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Revenue
 
 
Revenue
$ 376.3 
$ 320.2 
Costs and operating expenses
 
 
Cost of revenue (excluding depreciation and amortization)
137.2 1
125.8 1
Technology and development
67.6 1
61.6 1
Marketing and advertising
50.7 1
41.0 1
Customer care
56.7 1
46.4 1
General and administrative
47.2 1
42.8 1
Depreciation and amortization
37.4 
36.7 
Total costs and operating expenses
396.8 
354.3 
Operating loss
(20.5)
(34.1)
Interest expense
(23.5)
(17.6)
Other income (expense), net
0.2 
(0.8)
Loss before income taxes
(43.8)
(52.5)
Benefit for income taxes
0.4 
1.2 
Net loss
(43.4)
(51.3)
Net loss per unit—basic and diluted (in USD per share)
$ (0.34)
$ (0.40)
Weighted-average units outstanding—basic and diluted (in shares)
129,082,591 
128,014,878 
Equity-based compensation expense
8.7 
6.8 
Technology and development
 
 
Costs and operating expenses
 
 
Equity-based compensation expense
3.8 
2.3 
Marketing and advertising
 
 
Costs and operating expenses
 
 
Equity-based compensation expense
1.3 
1.0 
Customer care
 
 
Costs and operating expenses
 
 
Equity-based compensation expense
0.3 
0.1 
General and administrative
 
 
Costs and operating expenses
 
 
Equity-based compensation expense
3.3 
3.4 
Domains
 
 
Revenue
 
 
Revenue
199.2 
180.5 
Hosting and presence
 
 
Revenue
 
 
Revenue
140.2 
115.6 
Business applications
 
 
Revenue
 
 
Revenue
$ 36.9 
$ 24.1 
Condensed Consolidated Statements of Cash Flows (Desert Newco, LLC, USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Desert Newco, LLC
 
 
Operating activities
 
 
Net loss
$ (43,400,000)
$ (51,300,000)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
Depreciation and amortization
37,400,000 
36,700,000 
Equity-based compensation
8,700,000 
6,800,000 
Other
2,300,000 
2,800,000 
Changes in operating assets and liabilities, net of amounts acquired:
 
 
Registry deposits
(900,000)
(3,400,000)
Prepaid domain name registry fees
(22,000,000)
(19,000,000)
Deferred revenue
87,000,000 
86,300,000 
Other operating assets and liabilities
3,000,000 
(16,400,000)
Net cash provided by operating activities
72,100,000 
42,500,000 
Investing activities
 
 
Purchases of short-term investments
(1,100,000)
0 
Maturities of short-term investments
3,000,000 
3,200,000 
Business acquisitions, net of cash acquired
(1,100,000)
1,100,000 
Purchases of property and equipment, excluding improvements
(7,600,000)
(6,800,000)
Purchases of leasehold and building improvements
(600,000)
(1,600,000)
Net cash used in investing activities
(7,400,000)
(4,100,000)
Financing activities
 
 
Proceeds from exercises of options and warrants and other
400,000 
2,300,000 
Repayment of term loan
(2,800,000)
(2,100,000)
Repayment of other financing obligations
(1,600,000)
(500,000)
Payment of deferred offering costs
(2,900,000)
0 
Net cash used in financing activities
(6,900,000)
(300,000)
Net increase in cash and cash equivalents
57,800,000 
38,100,000 
Cash and cash equivalents, beginning of period
139,000,000 
95,400,000 
Cash and cash equivalents, end of period
196,800,000 
133,500,000 
Supplemental cash flow information:
 
 
Interest
20,600,000 
15,100,000 
Income taxes, net of refunds received
600,000 
800,000 
Supplemental information for non-cash investing and financing activities:
 
 
Accrued capital expenditures, excluding improvements, at period end
10,400,000 
3,900,000 
Accrued capital expenditures, leasehold and building improvements, at period end
500,000 
900,000 
Building acquired under lease financing obligation
$ 0 
$ 9,100,000 
Organization and Background
Organization and Background 
Organization and Background
GoDaddy was incorporated in Delaware on May 28, 2014.
As described in more detail in Note 5, on April 7, 2015, we completed an initial public offering (the IPO) of 26,000,000 shares of Class A common stock at a public offering price of $20.00 per share, receiving $491.8 million in proceeds, net of underwriting discounts and commissions, which were used to purchase newly-issued limited liability company units (LLC Units) from Desert Newco at a price per unit equal to the IPO price.
Subsequent to the IPO and the related organizational transactions, we are a holding company and our principal asset is a controlling equity interest in Desert Newco. As the sole managing member of Desert Newco, we operate and control all of the business and affairs of Desert Newco, and through Desert Newco and its subsidiaries, conduct our business. As a result, beginning in the second quarter of 2015, we will consolidate Desert Newco's financial results and report a non-controlling interest related to the portion of LLC Units not owned by us.
Basis of Presentation
Our balance sheets have been prepared in accordance with generally accepted accounting principles in the United States (GAAP). Statements of income, stockholders’ equity and cash flows have not been presented because, as of March 31, 2015, we had not engaged in any business or other activities except in connection with our formation.
Organization and Background 
Organization and Background
Description of Business
We are a leading technology provider to small businesses, web design professionals and individuals, delivering simple, easy-to-use cloud-based products and outcome-driven, personalized customer care. We operate the world’s largest domain marketplace and provide website building, hosting and security tools to help customers easily construct and protect their online presence and tackle the rapidly changing technology landscape. As our customers grow, we provide applications helping them connect to their customers, manage and grow their businesses and get found online.
GoDaddy was incorporated on May 28, 2014 for the purpose of facilitating an initial public offering and other related transactions in order to carry on our business. On April 7, 2015, GoDaddy completed an IPO, receiving $491.8 million in proceeds, net of underwriting discounts and commissions, which were used to purchase newly-issued LLC Units from us at a price per unit equal to the IPO price.
Subsequent to the IPO, GoDaddy is a holding company and its principal asset is a controlling equity interest in us. As our sole managing member, GoDaddy operates and controls all of our business and affairs, and through us and our subsidiaries, conducts our business.
Basis of Presentation
Our condensed consolidated financial statements have been prepared in accordance with GAAP, and include our accounts and the accounts of our wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.
Unaudited Interim Financial Information
The accompanying condensed consolidated balance sheet as of March 31, 2015 and the condensed consolidated statements of operations and cash flows for the three months ended March 31, 2015 and 2014 are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP, and in our opinion, include all adjustments of a normal recurring nature necessary for the fair presentation of our consolidated financial position as of March 31, 2015 and our consolidated results of operations and cash flows for the three ended March 31, 2015 and 2014. Our consolidated results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015.
Our unaudited interim condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and related notes included in our prospectus dated March 31, 2015, filed with the Securities and Exchange Commission (SEC) in accordance with Rule 424(b) of the Securities Exchange Act of 1933, as amended (Securities Act) on April 1, 2015.
Prior Period Reclassifications
Reclassifications of certain immaterial prior period amounts have been made to conform to the current period presentation.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions affecting amounts reported in our condensed consolidated financial statements. Our more significant estimates include:
•
the determination of the best estimate of selling price of the deliverables included in multiple-deliverable revenue arrangements,
•the fair value of assets acquired and liabilities assumed in business combinations,
•the assessment of recoverability of long-lived assets (property and equipment, goodwill and intangible assets),
•the estimated reserve for refunds,
•the estimated useful lives of intangible and depreciable assets,
•the fair value of equity-based awards,
•the recognition, measurement and valuation of current and deferred income taxes and
•the recognition and measurement of loss contingencies, indirect tax liabilities and certain accrued liabilities.
We periodically evaluate these estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual results may differ from our estimates.
Segments and Reporting Units
Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, or individuals who make up the chief operating decision maker function. Our chief operating decision maker function is comprised of the Chief Executive Officer and the Chief Operating Officer, who collectively review financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance for the entire company. Accordingly, we have a single operating segment and reporting unit structure.
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies 
Summary of Significant Accounting Policies
Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand and other highly liquid investments purchased with a remaining maturity of 90 days or less at the date of acquisition. Cash and cash equivalents are carried at fair value, which approximates carrying value.
Income Taxes
We are treated as a subchapter C corporation, and therefore, are subject to both federal and state income taxes. Desert Newco continues to be recognized as a limited liability company, a pass-through entity for income tax purposes.
Summary of Significant Accounting Policies 
Summary of Significant Accounting Policies
Deferred Offering Costs
Deferred offering costs, primarily consisting of legal, accounting and other fees relating to the IPO, are capitalized and included in other assets in our condensed consolidated balance sheets, and will be offset against the proceeds upon the completion of the IPO in April 2015. As of March 31, 2015 and December 31, 2014, we had capitalized $11.4 million and $6.1 million of deferred offering costs, respectively.
Comprehensive Loss
Our comprehensive loss is equivalent to our net loss during each of the periods presented, and as such, no statement of other comprehensive loss is presented.
Recent Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard on revenue recognition from contracts with customers. The new standard requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently issued, the new standard is effective for annual and interim reporting periods beginning after December 15, 2016, and early adoption is not permitted. We are currently evaluating the impact of this new standard on our consolidated financial statements.
In April 2015, the FASB issued new guidance regarding the presentation of debt issuance costs. This guidance requires debt issuance costs related to a recognized debt liability to be presented as a direct deduction of the carrying amount of the debt liability. The recognition and measurement guidance for debt issuance costs is not affected by this new guidance. We do not expect the adoption of this guidance, effective for us in the first quarter of 2016, to have a material impact on our consolidated financial statements, although it will require retrospective application, reducing the amount of debt and total assets reflected on our historical consolidated balance sheets.
Stockholders' Equity (GoDaddy Inc)
Stockholders' Equity
Stockholders’ Equity
On May 28, 2014, our board of directors (the GoDaddy Board) authorized the issuance of 1,000 shares of common stock, $0.001 par value. On June 2, 2014, we issued 1,000 shares for $1.00, all of which were owned by Desert Newco. Desert Newco contributed additional paid-in capital of $5.00 during the three months ended March 31, 2015 in contemplation of the organizational transactions discussed in Note 5. The shares owned by Desert Newco were redeemed in connection with the organizational transactions.
On February 23, 2015, the GoDaddy Board approved a restated certificate of incorporation (the Restated Certificate of Incorporation), which became effective on March 31, 2015 immediately prior to the effectiveness of the Registration Statement on Form S-1 (the Registration Statement) filed in connection with our IPO. The Restated Certificate of Incorporation authorized the issuance of up to 1,000,000,000 shares of Class A common stock, up to 500,000,000 shares of Class B common stock and up to 50,000,000 shares of undesignated preferred stock, each having a par value of $0.001 per share. Shares of our Class A common stock have both economic and voting rights. Shares of our Class B common stock have no economic rights, but do have voting rights. Holders of Class A and Class B common stock are entitled to one vote per share and, except as otherwise required, will vote together as a single class on all matters on which stockholders generally are entitled to vote.
The Restated Certificate of Incorporation also established a classified board of directors, divided into three classes, the members of each of which will serve for staggered three-year terms. At each annual meeting of stockholders after the initial classification, the successors to the directors whose terms will then expire will be elected to serve from the time of election and qualification until the third annual meeting following their election.
Goodwill and Intangible Assets (Desert Newco, LLC)
Goodwill and Intangible Assets
Goodwill and Intangible Assets
The following table summarizes changes in our goodwill balance:
Balance at December 31, 2014
$
1,661.2

Goodwill related to acquisitions
0.2

Balance at March 31, 2015
$
1,661.4



Intangible assets, net are summarized as follows:
 
March 31, 2015
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
Indefinite-lived intangible assets:
 
 
 
 
 
Trade names and branding
$
445.0

 
 n/a

 
$
445.0

Finite-lived intangible assets:
 
 
 
 
 
Customer relationships
336.9

 
$
155.3

 
181.6

Developed technology
210.3

 
117.7

 
92.6

Trade names
10.9

 
3.4

 
7.5

Other
1.1

 
0.5

 
0.6

 
$
1,004.2

 
$
276.9

 
$
727.3

 
 
December 31, 2014
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
Indefinite-lived intangible assets:
 
 
 
 
 
Trade names and branding
$
445.0

 
 n/a

 
$
445.0

Finite-lived intangible assets:
 
 
 
 
 
Customer relationships
336.9

 
$
143.1

 
193.8

Developed technology
209.5

 
107.4

 
102.1

Trade names
10.9

 
2.8

 
8.1

Other
1.1

 
0.4

 
0.7

 
$
1,003.4

 
$
253.7

 
$
749.7


Customer relationships, developed technology, trade names and other intangible assets have weighted-average useful lives from the date of purchase of 103 months, 64 months, 59 months and 36 months, respectively. Amortization expense was $24.1 million and $23.2 million for the three-month periods ended March 31, 2015 and 2014, respectively. The weighted-average remaining amortization period for amortizable intangible assets was 54 months as of March 31, 2015.

Based on the balance of finite-lived intangible assets at March 31, 2015, expected future amortization expense is as follows:
Year Ending December 31:
 
2015 (remainder of)
$
69.4

2016
81.9

2017
47.2

2018
39.4

2019
24.0

Thereafter
20.4

 
$
282.3

Members' Interest (Desert Newco, LLC)
Members' Interest
Members’ Interest
Our board of directors (the Desert Newco Board) approved a one-for-two reverse split of all outstanding LLC Units, effective March 11, 2015. Accordingly, every two outstanding units have been combined into one unit, the number of units underlying each outstanding option and Restricted Stock Unit (RSU) has been proportionately decreased on a one-for-two basis and the exercise price of each outstanding option has been proportionately increased on a one-for-two basis. All unit and per unit amounts have been adjusted, on a retroactive basis, to reflect this one-for-two reverse split.
On February 3, 2015, the Desert Newco Board adopted the New LLC Agreement, which became effective on March 31, 2015 upon the effectiveness of the Registration Statement. The New LLC Agreement, among other things, appointed GoDaddy as our sole managing member and reclassified all outstanding LLC Units as non-voting units. The New LLC Agreement also revised the tax rate applicable to the tax distributions we are required to make to the holders of LLC Units. These tax distributions will be computed based on an assumed income tax rate equal to the sum of (i) the maximum marginal federal income tax rate applicable to an individual (including, solely in the case of an owner of Holdings as of February 9, 2015, the 3.8% tax on net investment income to the extent such tax is applicable to the income allocable to such owner) and (ii) 7%, which represents an assumed blended state income tax rate. The assumed income tax rate currently totals 46.6%, which would increase to 50.4% with respect to a current owner of Holdings if the tax on net investment income were to apply.
The New LLC Agreement and the Restated Certificate of Incorporation requires GoDaddy and us to, at all times, maintain (i) a one-to-one ratio between the number of shares of GoDaddy Class A common stock outstanding and the number of LLC Units owned by GoDaddy and (ii) a one-to-one ratio between the number of shares of GoDaddy Class B common stock outstanding and the number of LLC Units owned by holders other than GoDaddy. Shares of GoDaddy Class B common stock are transferable only together with an equal number of LLC Units and will be canceled on a one-for-one basis if we, at the election of the holder of LLC Units, exchange LLC Units for GoDaddy Class A common stock.
Equity-Based Compensation Plans
Equity-Based Compensation Plans 
Equity-Based Compensation Plans
During the three-month periods ended March 31, 2015 and 2014, we granted options under the 2011 Unit Incentive Plan to purchase an aggregate of 2,111,681 and 1,500,625 units, respectively, with weighted-average exercise prices of $19.50 and $15.24 per option, respectively. We grant options at exercise prices equal to the fair market value of our units on the date of grant. The weighted-average grant date fair value of these awards was determined to be $7.89 and $8.04 per option, respectively, which we recognize as compensation expense over the required service period of each award, taking into account the probability of our achievement of the associated predetermined performance targets.
During the three-month periods ended March 31, 2015 and 2014, we also granted 4,102 and 53,334 RSUs, respectively, with weighted-average grant-date fair values of $19.50 and $17.84 per unit, respectively.
During the three-month periods ended March 31, 2015 and 2014, we recognized $8.7 million and $6.8 million of equity-based compensation expense, respectively. At March 31, 2015, total unrecognized compensation expense related to non-vested awards was $55.4 million with an expected remaining weighted-average recognition period of approximately three years. We currently believe the performance targets related to the vesting of performance options will be achieved. If such targets are not achieved, or are subsequently determined to not be probable of being achieved, we will not recognize any equity-based compensation expense relating to performance options, and will reverse any previously recognized equity-based compensation expense.
On February 23, 2015, the GoDaddy Board adopted the 2015 Plan, which became effective on March 31, 2015 upon the effectiveness of the Registration Statement. A total of 6,050,048 shares of GoDaddy Class A common stock were reserved for issuance pursuant to the 2015 Plan. In addition, the shares reserved for issuance pursuant to the 2015 Plan will also include 4,235,413 shares reserved but unissued under the 2011 Unit Incentive Plan plus up to 28,132,734 shares rolled over from the 2011 Unit Incentive Plan and from certain other option plans assumed in connection with acquisitions. The number of shares reserved for issuance under the 2015 Plan will be increased automatically on January 1 of each year, beginning in 2016, by a number equal to the least of (i) 20,570,922 shares, (ii) 4% of the total shares of all classes of GoDaddy common stock outstanding as of the last day of the year preceding the increase date or (iii) such other amount determined by the GoDaddy Board.
Equity-Based Compensation Plans 
Equity-Based Compensation
On February 23, 2015, the GoDaddy Board adopted the GoDaddy Inc. 2015 Equity Incentive Plan (the 2015 Plan), which became effective on March 31, 2015 upon the effectiveness of the Registration Statement. We reserved a total of 6,050,048 shares of Class A common stock for issuance pursuant to the 2015 Plan. In addition, the shares reserved for issuance pursuant to the 2015 Plan included 4,235,413 shares reserved but unissued under the Desert Newco, LLC 2011 Unit Incentive Plan (the 2011 Unit Incentive Plan) plus up to 28,132,734 shares rolled over from the 2011 Unit Incentive Plan and from certain other option plans assumed by Desert Newco in connection with acquisitions. The number of shares reserved for issuance under the 2015 Plan will be increased automatically on January 1 of each year, beginning in 2016, by a number equal to the least of (i) 20,570,922 shares, (ii) 4% of the total shares of all classes of common stock outstanding as of the last day of the year preceding the increase date or (iii) such other amount determined by the GoDaddy Board.
On February 23, 2015, the GoDaddy Board adopted the GoDaddy Inc. 2015 Employee Stock Purchase Plan (the ESPP), which became effective on March 31, 2015 upon the effectiveness of the Registration Statement. We reserved a total of 2,000,000 shares of Class A common stock for issuance pursuant to the ESPP. The number of shares reserved for issuance under the ESPP will be increased automatically on January 1 of each year, beginning in 2016, by a number equal to the least of (i) 1,000,000 shares, (ii) 1% of the total shares of all classes of common stock outstanding as of the last day of the year preceding the increase date or (iii) such other amount determined by the GoDaddy Board.
Deferred Revenue (Desert Newco, LLC)
Deferred Revenue
Deferred Revenue
Deferred revenue consists of the following:
 
March 31, 2015
 
December 31, 2014
Current:
 
 
 
Domains
$
489.0

 
$
462.9

Hosting and presence
304.8

 
283.4

Business applications
88.0

 
75.1

 
$
881.8

 
$
821.4

Noncurrent:
 
 
 
Domains
$
279.3

 
$
266.8

Hosting and presence
140.8

 
131.5

Business applications
35.7

 
30.9

 
$
455.8

 
$
429.2

Long-Term Debt (Desert Newco, LLC)
Long-Term Debt
Long-Term Debt
Long-term debt consists of the following:
 
March 31, 2015
 
December 31, 2014
Term Loan due May 13, 2021 (effective interest rate of 5.3% and 5.2% at March 31, 2015 and December 31, 2014, respectively)
$
1,091.8

 
$
1,094.5

9% Note payable to Holdings due December 15, 2019 (Senior Note)
300.0

 
300.0

Revolving Credit Loan due May 13, 2019 (effective interest rate of 4.0% at March 31, 2015 and December 31, 2014, respectively)
75.0

 
75.0

Total
1,466.8

 
1,469.5

Less unamortized original issue discounts on long-term debt(1)
(48.8
)
 
(50.6
)
Less current portion of long-term debt
(4.9
)
 
(5.0
)
 
$
1,413.1

 
$
1,413.9

 
 
(1)
Original issue discounts are amortized to interest expense over the life of the related debt instruments using the effective interest method.
Term Loan and Revolving Credit Loan
Our amended and restated secured credit agreement (the Credit Facility) consists of a $1,100.0 million original balance term loan maturing on May 13, 2021 (the Term Loan) and an available $150.0 million revolving credit loan maturing on May 13, 2019 (the Revolving Credit Loan). Borrowings under the Credit Facility bear interest at a rate equal to, at our option, either (a) LIBOR (not less than 1.0% for the Term Loan only) plus 3.75% per annum or (b) 2.75% per annum plus the highest of (i) the Federal Funds Rate plus 0.5%, (ii) the Prime Rate or (iii) one-month LIBOR plus 1.0%. The interest rate margins will be reduced by 0.25% following the IPO and an additional 0.25% if we meet certain leverage criteria. In addition, a 1.0% pre-payment premium is payable until May 13, 2015 under certain circumstances.
At March 31, 2015, we were not in violation of any covenants of the Credit Facility.
The estimated fair value of the Term Loan was $1,095.8 million at March 31, 2015 based on observable market prices for this loan, which is traded in a less active market and is therefore classified as a Level 2 fair value measurement. The estimated fair value of the Revolving Credit Loan approximates its book value at March 31, 2015 based on borrowing rates currently available for loans with similar terms, which are classified as a Level 2 fair value measurement.
In April 2015, we repaid all amounts drawn under the Revolving Credit Loan, as described in Note 13.
Senior Note
At March 31, 2015, we were not in violation of any covenants of the Senior Note.
In April 2015, we repaid the Senior Note in full, as described in Note 13.
Future Debt Maturities
Aggregate principal payments, exclusive of any unamortized original issue discounts, due on long-term debt as of March 31, 2015 are as follows:
Year Ending December 31:
 
2015 (remainder of)
$
8.3

2016
11.0

2017
11.0

2018
11.0

2019
386.0

Thereafter
1,039.5

 
$
1,466.8

Commitments and Contingencies (Desert Newco, LLC)
Commitments and Contingencies
Commitments and Contingencies

Litigation
From time-to-time, we are a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims, labor and employment claims, breach of contract claims and other asserted and unasserted claims. We investigate these claims as they arise and accrue estimates for resolution of legal and other contingencies when losses are probable and estimable. While the results of such normal course claims and legal proceedings cannot be predicted with certainty, we do not believe, based on current knowledge and the likely timing of resolution of various matters, any additional reasonably possible potential losses above the amount accrued for such matters would be material to our consolidated financial statements. Regardless of the outcome, legal proceedings may have an adverse effect on us because of defense costs, diversion of management resources and other factors.
Indemnifications
In the normal course of business, we have made indemnities under which we may be required to make payments in relation to certain transactions. These include indemnities to our directors and officers to the maximum extent permitted under applicable state laws and indemnifications related to certain lease agreements. In addition, certain advertiser and reseller partner agreements contain indemnification provisions, which are generally consistent with those prevalent in the industry. We have not incurred significant obligations under indemnification provisions historically, and do not expect to incur significant obligations in the future. Accordingly, we have not recorded any liabilities related to such indemnities as of March 31, 2015 and December 31, 2014.
We include service level commitments to our customers guaranteeing certain levels of uptime reliability and performance for our hosting and premium DNS products. These guarantees permit those customers to receive credits in the event we fail to meet those levels, with exceptions for certain service interruptions including but not limited to periodic maintenance. We have not incurred any material costs as a result of such commitments during any of the periods presented, and have not recorded any liabilities related to such obligations as of March 31, 2015 and December 31, 2014.
Indirect Taxes
We are subject to indirect taxation in some, but not all, of the various states and foreign jurisdictions in which we conduct business. Laws and regulations attempting to subject communications and commerce conducted over the Internet to various indirect taxes are becoming more prevalent, both in the United States (U.S.) and internationally, and may impose additional burdens on us in the future. Increased regulation could negatively affect our business directly, as well as the businesses of our customers. Taxing authorities may impose indirect taxes on the Internet-related revenue we generate based on regulations currently being applied to similar, but not directly comparable, industries. There are many transactions and calculations where the ultimate indirect tax determination is uncertain. In addition, domestic and international indirect taxation laws are subject to change. In the future, we may come under audit, which could result in changes to our indirect tax estimates. We continually evaluate those jurisdictions in which nexus exists and believe we maintain adequate indirect tax accruals to offset potential liabilities that may arise upon audit. Although we believe our indirect tax estimates and associated accruals are reasonable, the final determination of indirect tax audits and any related litigation could be different than the amounts established for indirect tax contingencies.
As of March 31, 2015 and December 31, 2014, our accrual for estimated indirect tax liabilities was $6.4 million and $5.9 million, respectively, which reflects our best estimate of the probable liability based on an analysis of our business activities, revenues subject to indirect taxes and applicable regulations in each jurisdiction. Due to the complexity and uncertainty surrounding indirect tax laws, we believe it is reasonably possible we have incurred additional losses related to indirect taxes; however, we are not able to estimate a range of the loss.
Off-Balance Sheet Arrangements
As of March 31, 2015 and December 31, 2014, we had no off-balance sheet arrangements that had, or which are reasonably likely to have, a material effect on our consolidated financial statements.
Income Taxes (Desert Newco, LLC)
Income Taxes
Income Taxes
We are structured generally as a limited liability company taxed as a partnership for U.S. income tax purposes, which will continue following the IPO discussed in Note 13. Under these provisions, we are considered a pass-through entity and generally do not pay corporate income taxes on our taxable income in most jurisdictions. Instead, our members are liable for U.S. federal and state income taxes based on their taxable income. We are liable for income taxes in certain foreign countries, in those states not recognizing our pass-through status and for certain subsidiaries not taxed as pass-through entities.
Our effective tax rate differs from statutory rates primarily due to our pass-through entity structure for U.S. income tax purposes, while being treated as taxable in certain states and various foreign countries as well as for certain subsidiaries. In all foreign countries where we conduct business, except Canada, we operate through legal entities disregarded for U.S. income tax purposes, and are subject to income tax in both the local country and the U.S.
Our effective income tax rate was (0.9)% and (2.3)% for the three months ended March 31, 2015 and 2014, respectively. The tax benefit differed in the three months ended March 31, 2015 compared to the same period in 2014 primarily due to increased taxable income from our taxable corporate subsidiaries.
We determined a liability related to uncertain income tax positions does not exist during any of the periods presented. Although we believe the amounts reflected in our income tax returns substantially comply with applicable federal, state and foreign tax regulations, the respective taxing authorities may take contrary positions based on their interpretation of the law. A tax position successfully challenged by a taxing authority could result in an adjustment to the provision or benefit for income taxes in the period in which a final determination is made.
Loss Per Unit (Desert Newco, LLC)
Loss Per Unit
Loss Per Unit
Basic loss per unit is computed by dividing net loss by the weighted-average number of units outstanding during the period. Diluted loss per unit is computed giving effect to all potential weighted average dilutive units, including options, RSUs and warrants. The dilutive effect of outstanding equity awards, if any, is reflected in diluted earnings per unit by application of the treasury stock method. Diluted loss per unit for all periods presented is the same as basic loss per unit as the inclusion of potentially issuable units would be antidilutive.
A reconciliation of the denominator used in the calculation of basic and diluted loss per unit is as follows:
 
Three Months Ended   March 31,
 
2015
 
2014
Numerator:
 
 
 
Net loss
$
(43.4
)
 
$
(51.3
)
 
 
 
 
Denominator:
 
 
 
Weighted-average units outstanding—basic and diluted
129,082,591

 
128,014,878

Effect of dilutive securities
—

 
—

Weighted-average units outstanding—diluted
129,082,591

 
128,014,878

 
 
 
 
Net loss per unit—basic and diluted
$
(0.34
)
 
$
(0.40
)

During the three months ended March 31, 2015 and 2014, we had 12,263,855 and 8,311,822 weighted-average potentially dilutive units, respectively, which were excluded from the calculation of diluted loss per unit because the effect of including such potentially dilutive units would have been antidilutive.
Geographic Information (Desert Newco, LLC)
Geographic Information
Geographic Information
Revenue by geography is based on the address of the customer. The following sets forth our total revenue by geographic area:
 
Three Months Ended   March 31,
 
2015
 
2014
U.S.
$
280.4

 
$
242.5

International
95.9

 
77.7

 
$
376.3

 
$
320.2


No individual international country represented more than 10% of total revenue in any period presented. Substantially all of our assets are located in the U.S.
Related Party Transactions (Desert Newco, LLC)
Related Party Transactions
Related Party Transactions
Amounts paid to affiliates of KKR related to their participation as lenders under our Credit Facility were as follows:
 
Three Months Ended   March 31,
 
2015
 
2014
Principal
$
0.1

 
$
0.1

Interest and other fees
0.4

 
0.3


As of March 31, 2015 and December 31, 2014, affiliates of KKR held $29.1 million of the outstanding principal balance of the Term Loan and $5.0 million of the outstanding principal balance of the Revolving Credit Loan as participating lenders.
On December 16, 2011, we entered into a transaction and monitoring fee agreement expiring December 16, 2021 with affiliates of certain of the Sponsors pursuant to which those entities provide management and advisory services. During each of the three months ended March 31, 2015 and 2014, we paid $0.6 million under this arrangement. In April 2015, we terminated this agreement in connection with the completion of the IPO, as described in Note 13.
On December 16, 2011, we entered into a services agreement with Bob Parsons pursuant to which we are obligated to provide customary benefits and to reimburse up to $0.5 million of business expenses annually. In April 2015, we terminated this agreement in connection with the completion of the IPO, as described in Note 13.
During each of the three months ended March 31, 2015 and 2014, we also paid $6.8 million of interest to Holdings under the Senior Note. In April 2015, we repaid the Senior Note in full, as described in Note 13.
In addition, Holdings has indemnified us for certain taxes related to periods prior to December 16, 2011 and we have agreed to provide customary indemnification to Bob Parsons related to his service to us.
In the ordinary course of business, we purchase and lease computer equipment, technology licensing and software maintenance and support from affiliates of Dell Inc. (Dell). Silver Lake and its affiliates have a significant ownership interest in Dell. During the three months ended March 31, 2015 and 2014, we paid $5.6 million and $4.5 million, respectively, to Dell for these purchases.
Subsequent Events
Subsequent Events 
Subsequent Events
Organizational Transactions
On April 7, 2015, in connection with the completion of our IPO, we completed a series of organizational transactions (the Reorganization Transactions) pursuant to a reorganization agreement dated as of March 31, 2015 by and among GoDaddy, Desert Newco and certain other parties. The Reorganization Transactions included the following:
•
the amendment and restatement of Desert Newco's limited liability company agreement (the New LLC Agreement) to, among other things, appoint us as its sole managing member and reclassify its outstanding LLC Units as non-voting units;
•
the issuance of shares of Class B common stock to each of Desert Newco's existing owners (the Continuing LLC Owners) on a one-to-one basis with the number of LLC Units owned; and
•
the acquisition, by merger, of four members of Desert Newco (the Reorganization Parties), for which we issued 38,825,912 shares Class A common stock as consideration (the Investor Corp Mergers).
Desert Newco Recapitalization
As noted above, the New LLC Agreement, among other things, appointed us as Desert Newco's sole managing member and reclassified all outstanding LLC Units as non-voting units. Although we have a minority economic interest in Desert Newco, as the sole managing member, we have the sole voting power in, and control the management of, Desert Newco. As a result, beginning in the second quarter of 2015, we will consolidate Desert Newco's financial results and report a non-controlling interest related to the portion of Desert Newco not owned by us.
The Restated Certificate of Incorporation discussed in Note 3 and the New LLC Agreement noted above requires Desert Newco and us to, at all times, maintain (i) a one-to-one ratio between the number of shares of Class A common stock outstanding and the number of LLC Units owned by us and (ii) a one-to-one ratio between the number of shares of Class B common stock owned by the Continuing LLC Owners and the number of LLC Units owned by the Continuing LLC Owners. We may issue shares of Class B common stock only to the extent necessary to maintain the one-to-one ratio between the number of LLC Units held by the Continuing LLC Owners and the number of shares of Class B common stock held by the Continuing LLC Owners. Shares of Class B common stock are transferable only together with an equal number of LLC Units and will be canceled on a one-for-one basis if we, at the election of a Continuing LLC Owner, exchange LLC Units for Class A common stock.
Investor Corp Mergers
As noted above, we acquired, by merger, the Reorganization Parties, to which we issued an aggregate of 38,825,912 shares of Class A common stock as consideration for the 38,825,912 aggregate LLC Units held by such entities. Upon consummation of the Investor Corp Mergers, we recognized the 38,825,912 LLC Units at carrying value, as these transactions are considered to be between entities under common control.
We also acquired the tax attributes of the Reorganization Parties, which are recorded generally as deferred tax assets at the time of the Investor Corp Mergers. These attributes include net operating losses, tax credit carryforwards and the original basis adjustments (the OBAs) arising from the original acquisition of LLC Units by the Reorganization Parties, as described below.
Tax Receivable Agreements
Concurrent with the completion of the IPO, we became a party to five Tax Receivable Agreements (TRAs). Four of the TRAs are between us and each of the four Reorganization Parties, with the fifth being between us and the Continuing LLC Owners. The TRAs provide for the payment by us to the Reorganization Parties and the Continuing LLC Owners of approximately 85% of the amount of the calculated tax savings, if any, we will realize due to the Investor Corp Mergers and any future exchanges of LLC Units (together with the corresponding shares of Class B common stock) for Class A common stock.
In the Investor Corp Mergers, we acquired the OBAs created when the Reorganization Parties acquired their original LLC Units. These OBAs entitle us to the depreciation and amortization previously allocable to the Reorganization Parties. To the extent this depreciation and amortization is used to reduce our taxable income, thereby resulting in actual tax savings, we will be required to pay the Reorganization Parties approximately 85% of this calculated tax savings.
Based on our projections of taxable income estimated as of the date of the IPO, and before deduction of any specially allocated depreciation and amortization, we anticipate having enough taxable income to utilize a significant portion of these specially allocated deductions related to the original OBAs. Accordingly, we expect to record a liability of between $160.0 million and $170.0 million payable to the Reorganization Parties under the TRAs, representing approximately 85% of the calculated tax savings based on the portion of the OBAs we anticipate being able to utilize in future years. This liability will be adjusted through general and administrative expenses each period based on changes in anticipated future taxable income and changes in the applicable interest rates we are required to use in determining the liability under the TRAs.
We expect to obtain an increase in our share of the tax basis of Desert Newco's assets when the Continuing LLC Owners exchange LLC Units (together with the corresponding shares of Class B common stock). When we acquire LLC Units from the Continuing LLC Owners, we expect both the OBAs and the anticipated basis adjustments will increase, for tax purposes, our depreciation and amortization deductions, reducing the amount of future income tax we would otherwise be required to pay. This increase in tax basis will create additional deferred tax assets and additional liability under the TRAs of approximately 85% of the calculated tax savings for the expected use of these additional deductions. The increase in tax basis may also decrease gains, or increase losses, on future dispositions of certain assets to the extent tax basis is allocated to those assets.
As described above, based on projections of taxable income as of the date of the IPO, we anticipate we will utilize a significant portion of the OBAs allocated to us in the form of additional depreciation and amortization deductions. These deductions are allowed prior to our utilization of any net operating loss or tax credit carryforward against income taxes. Accordingly, we have recorded a liability reflecting the portion of the calculated tax savings we expect to owe to the Reorganization Parties under the TRAs. Because we anticipate these additional depreciation and amortization deductions being greater than our taxable income for many years, the excess deductions allocated to us will increase the amount of our net operating loss carryforwards, also increasing the deferred tax assets described above as these excess deductions are realized.
As a result of the Reorganization Transactions and the IPO, we acquired LLC Units and are required to recognize deferred tax assets and liabilities for the difference between the financial reporting and tax basis of our investment in Desert Newco at the investor level. We are a newly formed corporation with no operating history. We expect to be unable to utilize the net operating losses acquired in the Investor Corp Mergers and will be increasing those net operating losses due to the excess depreciation and amortization deductions. We believe there is significant uncertainty as to when we will be able to utilize these net operating loss carryforwards; therefore, after considering all available positive and negative evidence impacting the future realization of deferred tax assets, we have concluded it is more-likely-than-not these deferred tax assets will not be realized. Accordingly, a valuation allowance has been recorded at the date of the IPO against all of these deferred tax assets.
Initial Public Offering
As noted above, we completed an IPO of 26,000,000 shares of Class A common stock at a public offering price of $20.00 per share, which includes 3,000,000 shares issued pursuant to the underwriters' over-allotment option and 2,500,000 shares purchased by certain of Desert Newco's existing owners, who are affiliates of members of the GoDaddy Board. We received $491.8 million in proceeds, net of underwriting discounts and commissions, which we used to purchase newly-issued LLC Units from Desert Newco at a price per unit equal to the IPO price, including 1,250,000 LLC Units purchased by our wholly-owned subsidiary, GD Subsidiary Inc. Immediately following the completion of the IPO, there were 64,825,912 shares of Class A common stock outstanding, and we held 64,825,912 LLC Units, representing an approximate 42% ownership interest in Desert Newco. Additionally, immediately following the completion of the IPO, there were 90,425,288 shares of Class B common stock outstanding, equivalent to the number of LLC Units not held by us, representing the approximate remaining 58% ownership interest in Desert Newco.
Desert Newco, at our direction, used the proceeds from our purchase of LLC Units following the IPO for the following:
•
to pay $6.7 million of expenses, including legal, accounting, printing and other professional fees incurred in connection with the completion of the IPO, of which $6.6 million remains unpaid as of May 12, 2015, and including $1.2 million and $0.2 million to be paid on behalf of the Sponsors and Robert R. Parsons (Bob Parsons), Desert Newco's founder and a member of the GoDaddy Board, respectively;
•
to make a final aggregate payment of $26.6 million to the Sponsors upon the termination of the transaction and monitoring fee agreement in connection with the completion of the IPO, as described in more detail in Note 13 to Desert Newco's condensed consolidated financial statements;
•
to make a payment of $3.0 million to Bob Parsons, upon the termination of the executive chairman services agreement in connection with the completion of the IPO, as described in more detail in Note 13 to Desert Newco's condensed consolidated financial statements;
•
to make a payment totaling $316.0 million to repay the 9% note payable to The Go Daddy Group, Inc. (Holdings), an entity owned by Bob Parsons, including related prepayment premiums and accrued interest, as described in more detail in Note 13 to Desert Newco's condensed consolidated financial statements;
•
to make a payment of $75.0 million to repay all amounts drawn on its revolving credit loan; and
•
to make a payment of $28.1 million to complete an acquisition, as described in more detail in Note 13 to Desert Newco's condensed consolidated financial statements.
Subsequent Events 
Subsequent Events
On April 7, 2015, GoDaddy completed the IPO and received $491.8 million in proceeds, net of underwriting discounts and commissions. GoDaddy used these proceeds to make a capital contribution to us in exchange for 26,000,000 LLC Units. Immediately following the completion of the IPO and the related organizational transactions described in Note 5 to GoDaddy's balance sheets, GoDaddy held 64,825,912 LLC Units, representing an approximate 42% ownership interest in us.
We used the capital contribution received from GoDaddy, at their direction, to make the payments described below.
We incurred legal, accounting, printing and other professional fees in connection with the completion of the IPO. Through May 12, 2015, we have paid $0.1 million of these expenses. As of May 12, 2015, $6.6 million of these expenses remained unpaid, including $1.2 million and $0.2 million to be paid on behalf of the Sponsors and Bob Parsons, respectively.
In April 2015, we made a final aggregate payment of $26.6 million to affiliates of certain of the Sponsors upon the termination of the transaction and monitoring fee agreement in connection with the completion of the IPO, which was charged to general and administrative expenses. This payment was equal to the present value of the management fees that would have been payable during the ten-year period following termination. Following this payment, we have no further obligations under the transaction and monitoring fee agreement.
In April 2015, we paid $3.0 million to Bob Parsons upon the termination of the executive chairman services agreement in connection with the completion of the IPO, which was charged to general and administrative expenses. Following this payment, we have no further obligations under the executive chairman services agreement.
In April 2015, we made a payment totaling $316.0 million to repay the Senior Note, consisting of principal of $300.0 million, prepayment premiums of $13.5 million charged to interest expense and accrued interest of $2.5 million. Additionally, in connection with the repayment, $7.1 million of unamortized original issue discount and $0.9 million of deferred financing costs related to the Senior Note were charged to interest expense. Following this payment, we have no further obligations under the Senior Note.
In April 2015, we made a payment totaling $75.0 million to repay all amounts drawn on the Revolving Credit Loan. Following this payment, we have $150.0 million available for borrowing under the Revolving Credit Loan.
In April 2015, we completed an acquisition for consideration consisting of cash of $28.1 million and additional earn-out payments subject to the achievement of certain revenue targets.
Summary of Significant Accounting Policies (Policies)
Basis of Presentation 
Basis of Presentation
Our balance sheets have been prepared in accordance with generally accepted accounting principles in the United States (GAAP). Statements of income, stockholders’ equity and cash flows have not been presented because, as of March 31, 2015, we had not engaged in any business or other activities except in connection with our formation.
Cash and Cash Equivalents 
Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand and other highly liquid investments purchased with a remaining maturity of 90 days or less at the date of acquisition. Cash and cash equivalents are carried at fair value, which approximates carrying value.
Income Taxes 
Income Taxes
We are treated as a subchapter C corporation, and therefore, are subject to both federal and state income taxes. Desert Newco continues to be recognized as a limited liability company, a pass-through entity for income tax purposes.
Basis of Presentation 
Basis of Presentation
Our condensed consolidated financial statements have been prepared in accordance with GAAP, and include our accounts and the accounts of our wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation
Prior Period Reclassifications 
Prior Period Reclassifications
Reclassifications of certain immaterial prior period amounts have been made to conform to the current period presentation.
Use of Estimates 
Use of Estimates
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions affecting amounts reported in our condensed consolidated financial statements. Our more significant estimates include:
•
the determination of the best estimate of selling price of the deliverables included in multiple-deliverable revenue arrangements,
•the fair value of assets acquired and liabilities assumed in business combinations,
•the assessment of recoverability of long-lived assets (property and equipment, goodwill and intangible assets),
•the estimated reserve for refunds,
•the estimated useful lives of intangible and depreciable assets,
•the fair value of equity-based awards,
•the recognition, measurement and valuation of current and deferred income taxes and
•the recognition and measurement of loss contingencies, indirect tax liabilities and certain accrued liabilities.
We periodically evaluate these estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual results may differ from our estimates.
Segments 
Segments and Reporting Units
Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, or individuals who make up the chief operating decision maker function. Our chief operating decision maker function is comprised of the Chief Executive Officer and the Chief Operating Officer, who collectively review financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance for the entire company. Accordingly, we have a single operating segment and reporting unit structure.
Deferred Offering Costs 
Deferred Offering Costs
Deferred offering costs, primarily consisting of legal, accounting and other fees relating to the IPO, are capitalized and included in other assets in our condensed consolidated balance sheets, and will be offset against the proceeds upon the completion of the IPO in April 2015.
Recent Accounting Pronouncements 
Recent Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard on revenue recognition from contracts with customers. The new standard requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently issued, the new standard is effective for annual and interim reporting periods beginning after December 15, 2016, and early adoption is not permitted. We are currently evaluating the impact of this new standard on our consolidated financial statements.
In April 2015, the FASB issued new guidance regarding the presentation of debt issuance costs. This guidance requires debt issuance costs related to a recognized debt liability to be presented as a direct deduction of the carrying amount of the debt liability. The recognition and measurement guidance for debt issuance costs is not affected by this new guidance. We do not expect the adoption of this guidance, effective for us in the first quarter of 2016, to have a material impact on our consolidated financial statements, although it will require retrospective application, reducing the amount of debt and total assets reflected on our historical consolidated balance sheets.
Goodwill and Intangible Assets (Tables) (Desert Newco, LLC)
Schedule of Goodwill 
The following table summarizes changes in our goodwill balance:
Balance at December 31, 2014
$
1,661.2

Goodwill related to acquisitions
0.2

Balance at March 31, 2015
$
1,661.4

Schedule of Indefinite-Lived Intangible Assets 
Intangible assets, net are summarized as follows:
 
March 31, 2015
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
Indefinite-lived intangible assets:
 
 
 
 
 
Trade names and branding
$
445.0

 
 n/a

 
$
445.0

Finite-lived intangible assets:
 
 
 
 
 
Customer relationships
336.9

 
$
155.3

 
181.6

Developed technology
210.3

 
117.7

 
92.6

Trade names
10.9

 
3.4

 
7.5

Other
1.1

 
0.5

 
0.6

 
$
1,004.2

 
$
276.9

 
$
727.3

 
 
December 31, 2014
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
Indefinite-lived intangible assets:
 
 
 
 
 
Trade names and branding
$
445.0

 
 n/a

 
$
445.0

Finite-lived intangible assets:
 
 
 
 
 
Customer relationships
336.9

 
$
143.1

 
193.8

Developed technology
209.5

 
107.4

 
102.1

Trade names
10.9

 
2.8

 
8.1

Other
1.1

 
0.4

 
0.7

 
$
1,003.4

 
$
253.7

 
$
749.7

Schedule of Finite-Lived Intangible Assets 
Intangible assets, net are summarized as follows:
 
March 31, 2015
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
Indefinite-lived intangible assets:
 
 
 
 
 
Trade names and branding
$
445.0

 
 n/a

 
$
445.0

Finite-lived intangible assets:
 
 
 
 
 
Customer relationships
336.9

 
$
155.3

 
181.6

Developed technology
210.3

 
117.7

 
92.6

Trade names
10.9

 
3.4

 
7.5

Other
1.1

 
0.5

 
0.6

 
$
1,004.2

 
$
276.9

 
$
727.3

 
 
December 31, 2014
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
Indefinite-lived intangible assets:
 
 
 
 
 
Trade names and branding
$
445.0

 
 n/a

 
$
445.0

Finite-lived intangible assets:
 
 
 
 
 
Customer relationships
336.9

 
$
143.1

 
193.8

Developed technology
209.5

 
107.4

 
102.1

Trade names
10.9

 
2.8

 
8.1

Other
1.1

 
0.4

 
0.7

 
$
1,003.4

 
$
253.7

 
$
749.7

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense 
Based on the balance of finite-lived intangible assets at March 31, 2015, expected future amortization expense is as follows:
Year Ending December 31:
 
2015 (remainder of)
$
69.4

2016
81.9

2017
47.2

2018
39.4

2019
24.0

Thereafter
20.4

 
$
282.3

Deferred Revenue (Tables) (Desert Newco, LLC)
Deferred Revenue, by Arrangement
Deferred revenue consists of the following:
 
March 31, 2015
 
December 31, 2014
Current:
 
 
 
Domains
$
489.0

 
$
462.9

Hosting and presence
304.8

 
283.4

Business applications
88.0

 
75.1

 
$
881.8

 
$
821.4

Noncurrent:
 
 
 
Domains
$
279.3

 
$
266.8

Hosting and presence
140.8

 
131.5

Business applications
35.7

 
30.9

 
$
455.8

 
$
429.2

Long-Term Debt (Tables) (Desert Newco, LLC)
Schedule of Long-term Debt Instruments 
Long-term debt consists of the following:
 
March 31, 2015
 
December 31, 2014
Term Loan due May 13, 2021 (effective interest rate of 5.3% and 5.2% at March 31, 2015 and December 31, 2014, respectively)
$
1,091.8

 
$
1,094.5

9% Note payable to Holdings due December 15, 2019 (Senior Note)
300.0

 
300.0

Revolving Credit Loan due May 13, 2019 (effective interest rate of 4.0% at March 31, 2015 and December 31, 2014, respectively)
75.0

 
75.0

Total
1,466.8

 
1,469.5

Less unamortized original issue discounts on long-term debt(1)
(48.8
)
 
(50.6
)
Less current portion of long-term debt
(4.9
)
 
(5.0
)
 
$
1,413.1

 
$
1,413.9

 
 
(1)
Original issue discounts are amortized to interest expense over the life of the related debt instruments using the effective interest method.
Schedule of Maturities of Long-term Debt 
Aggregate principal payments, exclusive of any unamortized original issue discounts, due on long-term debt as of March 31, 2015 are as follows:
Year Ending December 31:
 
2015 (remainder of)
$
8.3

2016
11.0

2017
11.0

2018
11.0

2019
386.0

Thereafter
1,039.5

 
$
1,466.8

Loss Per Unit (Tables) (Desert Newco, LLC)
Schedule of Earnings Per Share, Basic and Diluted
A reconciliation of the denominator used in the calculation of basic and diluted loss per unit is as follows:
 
Three Months Ended   March 31,
 
2015
 
2014
Numerator:
 
 
 
Net loss
$
(43.4
)
 
$
(51.3
)
 
 
 
 
Denominator:
 
 
 
Weighted-average units outstanding—basic and diluted
129,082,591

 
128,014,878

Effect of dilutive securities
—

 
—

Weighted-average units outstanding—diluted
129,082,591

 
128,014,878

 
 
 
 
Net loss per unit—basic and diluted
$
(0.34
)
 
$
(0.40
)
Geographic Information (Tables) (Desert Newco, LLC)
Revenue from External Customers by Geographic Areas
Revenue by geography is based on the address of the customer. The following sets forth our total revenue by geographic area:
 
Three Months Ended   March 31,
 
2015
 
2014
U.S.
$
280.4

 
$
242.5

International
95.9

 
77.7

 
$
376.3

 
$
320.2

Related Party Transactions (Tables) (Desert Newco, LLC)
Schedule of Related Party Transactions
Amounts paid to affiliates of KKR related to their participation as lenders under our Credit Facility were as follows:
 
Three Months Ended   March 31,
 
2015
 
2014
Principal
$
0.1

 
$
0.1

Interest and other fees
0.4

 
0.3

Organization and Background - GoDaddy IPO (Details) (GoDaddy Inc, Subsequent Event, Class A Common Stock, USD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended
Apr. 7, 2015
Apr. 7, 2015
GoDaddy Inc |
Subsequent Event |
Class A Common Stock
 
 
Class of Stock [Line Items]
 
 
Shares issued
26,000,000 
 
Share price (in USD per share)
 
$ 20.00 
Proceeds from issuance of IPO
$ 491.8 
 
Organization and Background - Desert Newco (Details) (Desert Newco, LLC)
3 Months Ended
Mar. 31, 2015
segment
Desert Newco, LLC
 
Class of Stock [Line Items]
 
Number of reporting units
1 
Number of operating segments
1 
Summary of Significant Accounting Policies (Details) (Desert Newco, LLC, USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Desert Newco, LLC
 
 
Entity Information [Line Items]
 
 
Deferred offering costs
$ 11.4 
$ 6.1 
Stockholders' Equity (Details) (GoDaddy Inc, USD $)
3 Months Ended 0 Months Ended
Mar. 31, 2015
Jun. 2, 2014
May 28, 2014
Mar. 31, 2015
Class A Common Stock
Mar. 31, 2015
Class B Common Stock
Jun. 2, 2014
Common Stock
Class of Stock [Line Items]
 
 
 
 
 
 
Common stock shares authorized
 
 
1,000 
1,000,000,000 
500,000,000 
 
Par value (in dollar per share)
 
 
$ 0.001 
$ 0.001 
$ 0.001 
 
Common stock shares issued
 
1,000 
 
 
 
 
Proceeds from issuance of common stock
 
 
 
 
 
$ 1.00 
Contributed additional paid-in capital for reorganization transactions
$ 5 
 
 
 
 
 
Preferred stock shares authorized
50,000,000 
 
 
 
 
 
Par value (in dollar per share)
$ 0.001 
 
 
 
 
 
Goodwill and Intangible Assets - Goodwill (Details) (Desert Newco, LLC, USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Desert Newco, LLC
 
Entity Information [Line Items]
 
Balance at December 31, 2014
$ 1,661.2 
Goodwill related to acquisitions
0.2 
Balance at March 31, 2015
$ 1,661.4 
Goodwill and Intangible Assets - Intangible Assets (Details) (Desert Newco, LLC, USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
Intangible assets, gross (excluding goodwill)
$ 1,004.2 
$ 1,003.4 
Intangible assets, net (excluding goodwill)
727.3 
749.7 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, accumulated amortization
276.9 
253.7 
Finite-lived intangible assets, net
282.3 
 
Trade names and branding
 
 
Indefinite-lived Intangible Assets [Line Items]
 
 
Indefinite-lived intangible assets (excluding goodwill)
445.0 
445.0 
Customer relationships
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
336.9 
336.9 
Finite-lived intangible assets, accumulated amortization
155.3 
143.1 
Finite-lived intangible assets, net
181.6 
193.8 
Developed technology
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
210.3 
209.5 
Finite-lived intangible assets, accumulated amortization
117.7 
107.4 
Finite-lived intangible assets, net
92.6 
102.1 
Trade names
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
10.9 
10.9 
Finite-lived intangible assets, accumulated amortization
3.4 
2.8 
Finite-lived intangible assets, net
7.5 
8.1 
Other
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-lived intangible assets, gross
1.1 
1.1 
Finite-lived intangible assets, accumulated amortization
0.5 
0.4 
Finite-lived intangible assets, net
$ 0.6 
$ 0.7 
Goodwill and Intangible Assets (Details) (Desert Newco, LLC, USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Finite-Lived Intangible Assets [Line Items]
 
 
Amortization expense
$ 24.1 
$ 23.2 
Weighted Average
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Useful life
54 months 
 
Customer relationships |
Weighted Average
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Useful life
103 months 
 
Developed technology |
Weighted Average
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Useful life
64 months 
 
Trade names |
Weighted Average
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Useful life
59 months 
 
Other |
Weighted Average
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Useful life
36 months 
 
Goodwill and Intangible Assets - Future Amortization of Finite Lived Intangible Assets (Details) (Desert Newco, LLC, USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Desert Newco, LLC
 
Entity Information [Line Items]
 
2015 (remainder of)
$ 69.4 
2016
81.9 
2017
47.2 
2018
39.4 
2019
24.0 
Thereafter
20.4 
Finite-lived intangible assets, net
$ 282.3 
Members' Interest (Details) (Desert Newco, LLC)
0 Months Ended
Mar. 31, 2015
Mar. 11, 2015
Schedule Of Limited Liability Company (LLC) Members' Equity [Line Items]
 
 
Reverse stock split ratio
 
0.5 
Tax on net investment income
3.80% 
 
Assumed blended state income tax rate
7.00% 
 
Assumed income tax rate
46.60% 
 
Assumed income tax rate including tax on net investment income
50.40% 
 
Class A Common Stock |
GoDaddy Inc
 
 
Schedule Of Limited Liability Company (LLC) Members' Equity [Line Items]
 
 
Required stock-to-unit ratio to be owned by related party
1 
 
Class B Common Stock |
GoDaddy Inc
 
 
Schedule Of Limited Liability Company (LLC) Members' Equity [Line Items]
 
 
Required stock-to-unit ratio to be owned by third parties
1 
 
Equity-Based Compensation Plans - GoDaddy (Details) (GoDaddy Inc, Class A Common Stock)
Mar. 31, 2015
2015 Equity Incentive Plan |
Stock Compensation Plan
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Shares reserved for future issuance
6,050,048 
Annual increase in shares reserved for issuance under equity incentive plan
20,570,922 
Annual increase in shares reserved for issuance under equity incentive plan, percent
4.00% 
2011 Unit Incentive Plan |
Stock Compensation Plan
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Shares reserved for future issuance
4,235,413 
2011 Unit Incentive Plan and Other Unidentified Plan |
Stock Compensation Plan
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Shares rolled over
28,132,734 
2015 Employee Stock Purchase Plan |
Employee Stock
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Shares reserved for future issuance
2,000,000 
Annual increase in shares reserved for issuance under equity incentive plan
1,000,000 
Annual increase in shares reserved for issuance under equity incentive plan, percent
1.00% 
Equity-Based Compensation Plans - Desert Newco (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Desert Newco, LLC
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Equity-based compensation expense
$ 8.7 
$ 6.8 
Unrecognized compensation costs
$ 55.4 
 
Weighted average recognition period
3 years 
 
Desert Newco, LLC |
2011 Unit Incentive Plan
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Options granted in period
2,111,681 
1,500,625 
Weighted average exercise price (in dollar per share)
$ 19.50 
$ 15.24 
Weighted average grant date fair value (in dollar per share)
$ 7.89 
$ 8.04 
Desert Newco, LLC |
2011 Unit Incentive Plan |
RSUs
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
RSUs granted
4,102 
53,334 
Weighted average grant date fair value (in dollar per share)
$ 19.50 
$ 17.84 
GoDaddy Inc |
2011 Unit Incentive Plan |
Stock Compensation Plan |
Class A Common Stock
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Shares reserved for future issuance
4,235,413 
 
GoDaddy Inc |
2015 Equity Incentive Plan |
Stock Compensation Plan |
Class A Common Stock
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Shares reserved for future issuance
6,050,048 
 
Annual increase in shares reserved for issuance under equity incentive plan
20,570,922 
 
Annual increase in shares reserved for issuance under equity incentive plan, percent
4.00% 
 
GoDaddy Inc |
2011 Unit Incentive Plan and Other Unidentified Plan |
Stock Compensation Plan |
Class A Common Stock
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Shares rolled over
28,132,734 
 
Deferred Revenue (Details) (Desert Newco, LLC, USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue, current
$ 881.8 
$ 821.4 
Deferred revenue, noncurrent
455.8 
429.2 
Domains
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue, current
489.0 
462.9 
Deferred revenue, noncurrent
279.3 
266.8 
Hosting and presence
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue, current
304.8 
283.4 
Deferred revenue, noncurrent
140.8 
131.5 
Business applications
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue, current
88.0 
75.1 
Deferred revenue, noncurrent
$ 35.7 
$ 30.9 
Long-Term Debt - Schedule of Long Term Debt (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Term Loan |
Term Loan Due May 2021
 
 
Debt Instrument [Line Items]
 
 
Effective interest rate
5.30% 
5.20% 
Senior Notes |
Note Payable Due December 2019
 
 
Debt Instrument [Line Items]
 
 
Interest rate
9.00% 
9.00% 
Line of Credit |
Revolving Credit Loan Due May 2019
 
 
Debt Instrument [Line Items]
 
 
Effective interest rate
4.00% 
4.00% 
Desert Newco, LLC
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
$ 1,466.8 
$ 1,469.5 
Less unamortized original issue discounts on long-term debt
(48.8)
(50.6)
Less current portion of long-term debt
(4.9)
(5.0)
Long-term debt, net of current portion
1,413.1 
1,413.9 
Desert Newco, LLC |
Term Loan |
Term Loan Due May 2021
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
1,091.8 
1,094.5 
Desert Newco, LLC |
Senior Notes |
Note Payable Due December 2019 |
GoDaddy Inc |
Loans Held by Related Parties |
Affiliated Entity
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
300.0 
300.0 
Desert Newco, LLC |
Line of Credit |
Revolving Credit Loan Due May 2019 |
Revolving Credit Facility
 
 
Debt Instrument [Line Items]
 
 
Long-term Debt
$ 75.0 
$ 75.0 
Long-Term Debt (Details) (Desert Newco, LLC, USD $)
3 Months Ended
Mar. 31, 2015
Credit Facility
 
Debt Instrument [Line Items]
 
Interest rate
2.75% 
Reduction in interest rate margins following IPO
(0.25%)
Reduction in interest rate margins leverage covenant met
(0.25%)
Pre-payment penalty
1.00% 
Credit Facility |
London Interbank Offered Rate (LIBOR)
 
Debt Instrument [Line Items]
 
LIBOR interest rate floor
1.00% 
Basis spread on variable rate
3.75% 
Credit Facility |
Federal Funds Rate
 
Debt Instrument [Line Items]
 
Basis spread on variable rate
0.50% 
Credit Facility |
One-Month LIBOR
 
Debt Instrument [Line Items]
 
Basis spread on variable rate
1.00% 
Term Loan |
Term Loan Due May 2021
 
Debt Instrument [Line Items]
 
Long-term Debt
$ 1,100,000,000.0 
Term Loan |
Term Loan Due May 2021 |
Fair Value, Inputs, Level 2
 
Debt Instrument [Line Items]
 
Debt, fair value
1,095,800,000 
Line of Credit |
Revolving Credit Loan Due May 2019 |
Revolving Credit Facility
 
Debt Instrument [Line Items]
 
Maximum borrowing capacity
$ 150,000,000.0 
Long-Term Debt - Schedule of Debt Maturities (Details) (Desert Newco, LLC, USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Desert Newco, LLC
 
 
Entity Information [Line Items]
 
 
2015 (remainder of)
$ 8.3 
 
2016
11.0 
 
2017
11.0 
 
2018
11.0 
 
2019
386.0 
 
Thereafter
1,039.5 
 
Long-term Debt
$ 1,466.8 
$ 1,469.5 
Commitments and Contingencies (Details) (Desert Newco, LLC, Indirect Taxation, USD $)
In Millions, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Desert Newco, LLC |
Indirect Taxation
 
 
Loss Contingencies [Line Items]
 
 
Estimated tax liability
$ 6.4 
$ 5.9 
Income Taxes (Details) (Desert Newco, LLC)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Desert Newco, LLC
 
 
Entity Information [Line Items]
 
 
Effective income tax rate
(0.90%)
(2.30%)
Loss Per Unit (Details) (Desert Newco, LLC, USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Desert Newco, LLC
 
 
Entity Information [Line Items]
 
 
Net loss
$ (43.4)
$ (51.3)
Weighted-average units outstanding—basic and diluted
129,082,591 
128,014,878 
Effect of dilutive securities
0 
0 
Weighted-average units outstanding—diluted
129,082,591 
128,014,878 
Net loss per unit—basic and diluted (in USD per share)
$ (0.34)
$ (0.40)
Antidilutive securities excluded from diluted loss per unit calculation (in shares)
12,263,855 
8,311,822 
Geographic Information (Details) (Desert Newco, LLC, USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Revenue
$ 376.3 
$ 320.2 
U.S.
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Revenue
280.4 
242.5 
International
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
Revenue
$ 95.9 
$ 77.7 
Related Party Transactions (Details) (Desert Newco, LLC, USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Dec. 31, 2014
Mar. 31, 2015
Sponsors
Affiliated Entity
Transaction and Fee Monitoring Agreement
Dec. 16, 2011
Bob Parsons
Board of Directors Chairman
Expense Reimbursement With Related Parties
Maximum
Mar. 31, 2015
Dell Inc
Affiliated Entity
Purchase and Lease of Computer Equipment, Technology Licensing, Maintenance and Support
Mar. 31, 2014
Dell Inc
Affiliated Entity
Purchase and Lease of Computer Equipment, Technology Licensing, Maintenance and Support
Mar. 31, 2015
Credit Facility
Affiliates of KKR
Affiliated Entity
Loans Held by Related Parties
Mar. 31, 2014
Credit Facility
Affiliates of KKR
Affiliated Entity
Loans Held by Related Parties
Mar. 31, 2015
Term Loan Due May 2021
Term Loan
Dec. 31, 2014
Term Loan Due May 2021
Term Loan
Mar. 31, 2015
Term Loan Due May 2021
Term Loan
Affiliates of KKR
Affiliated Entity
Loans Held by Related Parties
Dec. 31, 2014
Term Loan Due May 2021
Term Loan
Affiliates of KKR
Affiliated Entity
Loans Held by Related Parties
Mar. 31, 2015
Revolving Credit Loan Due May 2019
Line of Credit
Affiliates of KKR
Affiliated Entity
Loans Held by Related Parties
Dec. 31, 2014
Revolving Credit Loan Due May 2019
Line of Credit
Affiliates of KKR
Affiliated Entity
Loans Held by Related Parties
Mar. 31, 2015
Note Payable Due December 2019
Senior Notes
GoDaddy Inc
Affiliated Entity
Loans Held by Related Parties
Mar. 31, 2014
Note Payable Due December 2019
Senior Notes
GoDaddy Inc
Affiliated Entity
Loans Held by Related Parties
Dec. 31, 2014
Note Payable Due December 2019
Senior Notes
GoDaddy Inc
Affiliated Entity
Loans Held by Related Parties
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayments of principal
 
 
 
 
 
 
 
$ 0.1 
$ 0.1 
 
 
 
 
 
 
 
 
 
Interest and other fees
 
 
 
 
 
 
 
0.4 
0.3 
 
 
 
 
 
 
 
 
 
Long-term Debt
1,466.8 
 
1,469.5 
 
 
 
 
 
 
1,091.8 
1,094.5 
29.1 
29.1 
5.0 
5.0 
300.0 
 
300.0 
Transaction and monitoring fees
47.2 1
42.8 1
 
0.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual expense reimbursement
 
 
 
 
0.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest
20.6 
15.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.8 
6.8 
 
Purchases from related party
 
 
 
 
 
$ 5.6 
$ 4.5 
 
 
 
 
 
 
 
 
 
 
 
Subsequent Events - GoDaddy, Inc (Details) (USD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended 0 Months Ended 0 Months Ended
Mar. 31, 2015
Senior Notes
Note Payable Due December 2019
Dec. 31, 2014
Senior Notes
Note Payable Due December 2019
Jun. 30, 2015
GoDaddy Inc
Reorganization Parties and Continuing LLC Owners
Scenario, Forecast
Minimum
Tax Receivable Agreement
Investor
Jun. 30, 2015
GoDaddy Inc
Reorganization Parties and Continuing LLC Owners
Scenario, Forecast
Maximum
Tax Receivable Agreement
Investor
Apr. 7, 2015
GoDaddy Inc
Subsequent Event
Reorganization Parties and Continuing LLC Owners
Tax Receivable Agreement
Investor
Apr. 7, 2015
GoDaddy Inc
Subsequent Event
Class A Common Stock
Apr. 8, 2015
GoDaddy Inc
Subsequent Event
Class A Common Stock
Apr. 7, 2015
GoDaddy Inc
Subsequent Event
Class A Common Stock
Apr. 7, 2015
GoDaddy Inc
Subsequent Event
Class A Common Stock
Over-Allotment Option
Apr. 7, 2015
GoDaddy Inc
Subsequent Event
Class A Common Stock
Unidentified Affiliated Shareholders
Affiliated Entity
Apr. 8, 2015
GoDaddy Inc
Subsequent Event
Class B Common Stock
Apr. 7, 2015
GoDaddy Inc
Subsequent Event
Investor Corp Mergers [Member]
member
Apr. 7, 2015
GoDaddy Inc
Subsequent Event
Investor Corp Mergers [Member]
Class A Common Stock
Private Placement
Apr. 7, 2015
GoDaddy Inc
Subsequent Event
Investor Corp Mergers [Member]
Class A Common Stock
Private Placement
Mar. 31, 2015
Desert Newco, LLC
Mar. 31, 2014
Desert Newco, LLC
Mar. 31, 2015
Desert Newco, LLC
Sponsors
Transaction and Fee Monitoring Agreement
Affiliated Entity
Mar. 31, 2014
Desert Newco, LLC
Sponsors
Transaction and Fee Monitoring Agreement
Affiliated Entity
Apr. 8, 2015
Desert Newco, LLC
Subsequent Event
May 12, 2015
Desert Newco, LLC
Subsequent Event
Apr. 8, 2015
Desert Newco, LLC
Subsequent Event
Apr. 30, 2015
Desert Newco, LLC
Subsequent Event
Note Payable Due December 2019
Senior Notes
Apr. 30, 2015
Desert Newco, LLC
Subsequent Event
Revolving Credit Facility
Revolving Credit Loan Due May 2019
Line of Credit
Apr. 30, 2015
Desert Newco, LLC
Subsequent Event
Unspecified Acquisition
Apr. 8, 2015
Desert Newco, LLC
Subsequent Event
GoDaddy Inc
May 12, 2015
Desert Newco, LLC
Subsequent Event
Sponsors
Expense Reimbursement With Related Parties
Affiliated Entity
Apr. 30, 2015
Desert Newco, LLC
Subsequent Event
Sponsors
Transaction and Fee Monitoring Agreement
Affiliated Entity
May 12, 2015
Desert Newco, LLC
Subsequent Event
Bob Parsons
Expense Reimbursement With Related Parties
Board of Directors Chairman
Apr. 30, 2015
Desert Newco, LLC
Subsequent Event
Bob Parsons
Special Termination Benefits
Board of Directors Chairman
Apr. 7, 2015
Desert Newco, LLC
Subsequent Event
LLC Units
Apr. 7, 2015
Desert Newco, LLC
Subsequent Event
LLC Units
GD Subsidiary Inc
Subsidiary of Common Parent
Apr. 7, 2015
Desert Newco, LLC
Subsequent Event
Investor Corp Mergers [Member]
GoDaddy Inc
Apr. 7, 2015
Desert Newco, LLC
Subsequent Event
Investor Corp Mergers [Member]
LLC Units
Subsequent Event [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of members acquired
 
 
 
 
 
 
 
 
 
 
 
4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares issued
 
 
 
 
 
26,000,000 
 
 
3,000,000 
2,500,000 
 
 
38,825,912 
38,825,912 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
26,000,000 
1,250,000 
 
38,825,912 
LLC units held
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
64,825,912 
 
 
 
 
 
 
38,825,912 
 
Percent of tax benefits owed under tax receivable agreement
 
 
 
 
85.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected liability under tax receivable agreement
 
 
$ 160.0 
$ 170.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of IPO
 
 
 
 
 
491.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share price (in USD per share)
 
 
 
 
 
 
 
$ 20.00 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock outstanding (in shares)
 
 
 
 
 
 
64,825,912 
 
 
 
90,425,288 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LLC units held (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
42.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership percent of continuing LLC owners
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
58.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Stock issuance costs incurred
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity offering costs payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.6 
 
 
 
 
 
1.2 
 
0.2 
 
 
 
 
 
General and administrative
 
 
 
 
 
 
 
 
 
 
 
 
 
 
47.2 1
42.8 1
0.6 
 
 
 
 
 
 
 
 
 
26.6 
 
3.0 
 
 
 
 
Fees and commissions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Termination payment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.0 
 
 
 
 
Repayments of related party debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
316.0 
 
 
 
 
 
 
 
 
 
 
 
Interest rate
9.00% 
9.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9.00% 
 
 
 
 
 
 
 
 
 
 
 
Repayments of Long-term Debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
75.0 
 
 
 
 
 
 
 
 
 
 
Consideration transferred
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 28.1 
 
 
 
 
 
 
 
 
 
Subsequent Events - Desert Newco, LLC (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 0 Months Ended 1 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended 1 Months Ended 0 Months Ended
Mar. 31, 2015
Desert Newco, LLC
Mar. 31, 2014
Desert Newco, LLC
Apr. 8, 2015
Desert Newco, LLC
Subsequent Event
May 12, 2015
Desert Newco, LLC
Subsequent Event
Apr. 30, 2015
Senior Notes
Note Payable Due December 2019
Desert Newco, LLC
Subsequent Event
Apr. 30, 2015
Unspecified Acquisition
Desert Newco, LLC
Subsequent Event
Apr. 30, 2015
Revolving Credit Facility
Line of Credit
Revolving Credit Loan Due May 2019
Desert Newco, LLC
Subsequent Event
Apr. 8, 2015
GoDaddy Inc
Desert Newco, LLC
Subsequent Event
Apr. 30, 2015
GoDaddy Inc
Affiliated Entity
Loans Held by Related Parties
Senior Notes
Note Payable Due December 2019
Desert Newco, LLC
Subsequent Event
May 12, 2015
Sponsors
Affiliated Entity
Expense Reimbursement With Related Parties
Desert Newco, LLC
Subsequent Event
Mar. 31, 2015
Sponsors
Affiliated Entity
Transaction and Fee Monitoring Agreement
Desert Newco, LLC
Apr. 30, 2015
Sponsors
Affiliated Entity
Transaction and Fee Monitoring Agreement
Desert Newco, LLC
Subsequent Event
May 12, 2015
Bob Parsons
Board of Directors Chairman
Expense Reimbursement With Related Parties
Desert Newco, LLC
Subsequent Event
Apr. 30, 2015
Bob Parsons
Board of Directors Chairman
Special Termination Benefits
Desert Newco, LLC
Subsequent Event
Apr. 7, 2015
Class A Common Stock
GoDaddy Inc
Subsequent Event
Apr. 7, 2015
LLC Units
Desert Newco, LLC
Subsequent Event
Subsequent Event [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of IPO
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 491.8 
 
Shares issued
 
 
 
 
 
 
 
 
 
 
 
 
 
 
26,000,000 
26,000,000 
LLC units held
 
 
 
 
 
 
 
64,825,912 
 
 
 
 
 
 
 
 
LLC units held (as a percent)
 
 
42.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payments of stock issuance costs
2.9 
0 
 
0.1 
 
 
 
 
 
 
 
 
 
 
 
 
Equity offering costs payable
 
 
 
6.6 
 
 
 
 
 
1.2 
 
 
0.2 
 
 
 
General and administrative
47.2 1
42.8 1
 
 
 
 
 
 
 
 
0.6 
26.6 
 
3.0 
 
 
Repayments of related party debt
 
 
 
 
316.0 
 
 
 
 
 
 
 
 
 
 
 
Prepayment of senior note in April 2015
 
 
 
 
 
 
 
 
300.0 
 
 
 
 
 
 
 
Prepayment penalties
 
 
 
 
 
 
 
 
13.5 
 
 
 
 
 
 
 
Interest
20.6 
15.1 
 
 
 
 
 
 
2.5 
 
 
 
 
 
 
 
Unamortized original issue discount charged to interest expense
 
 
 
 
7.1 
 
 
 
 
 
 
 
 
 
 
 
Deferred financing costs charged to interest expense
 
 
 
 
0.9 
 
 
 
 
 
 
 
 
 
 
 
Repayments of principal
 
 
 
 
 
 
75.0 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity
 
 
 
 
 
 
150.0 
 
 
 
 
 
 
 
 
 
Consideration transferred
 
 
 
 
 
$ 28.1