XML 45 R31.htm IDEA: XBRL DOCUMENT v3.3.1.900
Segment Information (Tables)
12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Long-lived Assets by Geographic Areas
The Company's long-lived tangible assets were located as follows:
 
As of December 31,
 
2015
 
2014
 
(in thousands)
United States
$
159,566

 
$
138,704

International
13,846

 
11,171

Information on Reportable Segments and Reconciliation to Consolidated Net Income
The following tables represent segment information for the year ended December 31, 2015:
 
 
As of/Year ended December 31, 2015
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Total memberships at end of period (1)
44,738

 
30,024

 
4,904

 

Revenues
$
4,180,339

 
$
1,953,435

 
$
645,737

 
$
6,779,511

Cost of revenues
2,487,193

 
1,780,375

 
323,908

 
4,591,476

Marketing
317,646

 
506,446

 

 
824,092

Contribution profit (loss)
$
1,375,500

 
$
(333,386
)
 
$
321,829

 
$
1,363,943

Other operating expenses
 
 
 
 
 
 
1,058,117

Operating income
 
 
 
 
 
 
305,826

Other income (expense)
 
 
 
 
 
 
(163,941
)
Provision for income taxes
 
 
 
 
 
 
19,244

Net income
 
 
 
 
 
 
$
122,641



 
As of/Year ended December 31, 2015
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Amortization of content assets
1,905,069

 
1,500,313

 
79,380

 
3,484,762


The following tables represent segment information for the year ended December 31, 2014:
 
 
As of/Year ended December 31, 2014
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Total memberships at end of period (1)
39,114

 
18,277

 
5,767

 

Revenues
$
3,431,434

 
$
1,308,061

 
$
765,161

 
$
5,504,656

Cost of revenues
2,201,761

 
1,154,117

 
396,882

 
3,752,760

Marketing
293,453

 
313,733

 

 
607,186

Contribution profit (loss)
$
936,220

 
$
(159,789
)
 
$
368,279

 
$
1,144,710

Other operating expenses
 
 
 
 
 
 
742,062

Operating income
 
 
 
 
 
 
402,648

Other income (expense)
 
 
 
 
 
 
(53,279
)
Provision for income taxes
 
 
 
 
 
 
82,570

Net income
 
 
 
 
 
 
$
266,799


 
As of/Year ended December 31, 2014
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Amortization of content assets
1,657,673

 
998,606

 
71,491

 
2,727,770


The following tables represent segment information for the year ended December 31, 2013:
 
As of/Year ended December 31, 2013
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Total memberships at end of period (1)
33,420

 
10,930

 
6,930

 

Revenues
$
2,751,375

 
$
712,390

 
$
910,797

 
$
4,374,562

Cost of revenues
1,863,376

 
782,304

 
471,523

 
3,117,203

Marketing
265,232

 
204,418

 
292

 
469,942

Contribution profit (loss)
$
622,767

 
$
(274,332
)
 
$
438,982

 
$
787,417

Other operating expenses
 
 
 
 
 
 
559,070

Operating income
 
 
 
 
 
 
228,347

Other income (expense)
 
 
 
 
 
 
(57,273
)
Provision for income taxes
 
 
 
 
 
 
58,671

Net income
 
 
 
 
 
 
$
112,403


 
As of/Year ended December 31, 2013
 
Domestic
Streaming
 
International
Streaming
 
Domestic
DVD
 
Consolidated
 
(in thousands)
Amortization of content assets
1,420,076

 
701,905

 
71,325

 
2,193,306

(1)
A membership (also referred to as a subscription or a member) is defined as the right to receive the Netflix service following sign-up and a method of payment being provided. Memberships are assigned to territories based on the geographic location used at time of sign-up as determined by our internal systems, which utilize industry standard geo-location technology. We offer free-trial memberships to new and certain rejoining members. Total members include those who are on a free-trial as long as a method of payment has been provided. A membership is canceled and ceases to be reflected in the above metrics as of the effective cancellation date. Voluntary cancellations become effective at the end of the prepaid membership period, while involuntary cancellation of the service, as a result of a failed method of payment, becomes effective immediately except in limited circumstances where a short grace period is offered to ensure the streaming service is not interrupted for members who are impacted by payment processing delays by our banks or integrated payment partners. The number of members in a grace period at any given point is not material.