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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Cash flows from operating activities:        
Net income $ 65,600 $ 40,755 $ 243,822 $ 68,413
Adjustments to reconcile net income to net cash used in operating activities:        
Additions to streaming content assets (2,664,421) (1,791,766) (5,013,087) (4,108,365)
Increase in streaming content liabilities 514,890 238,517 881,147 1,144,240
Amortization of streaming content assets 1,550,794 1,175,361 2,856,477 2,233,882
Amortization of DVD content assets 16,511 20,021 35,109 40,462
Depreciation and amortization of property, equipment and intangibles 18,551 14,131 33,600 28,929
Stock-based compensation expense 44,028 44,112 88,916 86,534
Excess tax benefits from stock-based compensation 0 (13,323) 0 (24,639)
Other non-cash items 11,519 9,040 33,185 21,797
Foreign currency remeasurement loss on long-term debt 64,220 0 64,220 0
Deferred taxes (20,702) (17,876) (47,466) (34,479)
Changes in operating assets and liabilities:        
Other current assets (80,199) 24,091 (105,601) 38,399
Accounts payable (12,439) 8,795 (23,439) (11,103)
Accrued expenses (48,042) 2,099 45,500 43,331
Deferred revenue 46,609 22,753 61,830 50,255
Other non-current assets and liabilities (41,447) (3,003) (32,597) (32,539)
Net cash used in operating activities (534,528) (226,293) (878,384) (454,883)
Cash flows from investing activities:        
Acquisition of DVD content assets (7,624) (17,924) (32,996) (41,131)
Purchases of property and equipment (65,231) (10,814) (117,754) (19,239)
Change in other assets (1,064) 907 (1,833) 551
Purchases of short-term investments (14,246) (18,492) (72,020) (53,454)
Proceeds from sale of short-term investments 14,128 18,752 69,876 26,940
Proceeds from maturities of short-term investments 17,605 24,675 22,705 87,700
Net cash (used in) provided by investing activities (56,432) (2,896) (132,022) 1,367
Cash flows from financing activities:        
Proceeds from issuance of debt 1,420,510 0 1,420,510 0
Debt issuance costs (15,013) 0 (15,013) 0
Proceeds from issuance of common stock 14,826 4,232 39,004 7,768
Excess tax benefits from stock-based compensation 0 13,323 0 24,639
Other financing activities 63 57 124 112
Net cash provided by financing activities 1,420,386 17,612 1,444,625 32,519
Effect of exchange rate changes on cash and cash equivalents 11,527 (2,742) 16,982 2,592
Net change in cash and cash equivalents 840,953 (214,319) 451,201 (418,405)
Cash and cash equivalents, beginning of period 1,077,824 1,605,244 1,467,576 1,809,330
Cash and cash equivalents, end of period 1,918,777 1,390,925 1,918,777 1,390,925
Supplemental disclosure:        
Change in investing activities included in liabilities $ (3,493) $ (1,254) $ (20,165) $ (1,757)