Balance Sheet Components

3 Months Ended

Mar. 31, 2020

Balance Sheet Components Disclosure [Abstract]

Content Assets, Net

Content assets consisted of the following:



	As of
	March 31, 2020		December 31, 2019
	(in thousands)
Licensed content, net	$	14,637,502	$	14,703,352

Produced content, net
Released, less amortization	4,638,736		4,382,685
In production	5,282,350		4,750,664
In development and pre-production	708,301		667,866
	10,629,387		9,801,215

Total	$	25,266,889	$	24,504,567

As of March 31, 2020, approximately $5,736 million, $3,760 million, and $2,478 million of the $14,638 million unamortized cost of the licensed content is expected to be amortized in each of the next three years. As of March 31, 2020, approximately $1,645 million, $1,276 million, and $941 million of the $4,639 million unamortized cost of the produced content that has been released is expected to be amortized in each of the next three years.

As of March 31, 2020, the amount of accrued participations and residuals was not material.

The following table represents the amortization of content assets:



	Three Months Ended
	March 31, 2020		March 31, 2019
	(in thousands)
Licensed content	$	1,860,170	$	1,774,289
Produced content	623,215		350,397
Total	$	2,483,385	$	2,124,686

Property and Equipment, Net

Property and equipment and accumulated depreciation consisted of the following:



	As of
	March 31, 2020			December 31, 2019			Estimated Useful Lives
	(in thousands)
Land	$	6,125		$	6,125
Buildings	34,459			33,141			30 years
Leasehold improvements	361,648			354,999			Over life of lease
Furniture and fixtures	87,925			87,465			3-15 years
Information technology	249,440			243,565			3 years
Corporate aircraft	109,619			108,995			8 years
Machinery and equipment	43,776			46,415			3-5 years
Capital work-in-progress	194,019			100,521
Property and equipment, gross	1,087,011			981,226
Less: Accumulated depreciation	(436,556		)	(416,005		)
Property and equipment, net	$	650,455		$	565,221

Leases

The Company has entered into operating leases primarily for real estate. These operating leases are included in "Other non-current assets" on the Company's Consolidated Balance Sheets, and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligations to make lease payments are included in "Accrued expenses and other liabilities" and "Other non-current liabilities" on the Company's Consolidated Balance Sheets. As of March 31, 2020, total right-of-use assets were approximately $1,502 million and total operating lease liabilities were approximately $1,596 million, of which $196 million and $1,400 million were classified in "Accrued expenses and other liabilities" and "Other non-current liabilities", respectively. As of December 31, 2019, total right-of-use assets were approximately $1,532 million and total operating lease liabilities were approximately $1,613 million, of which $190 million and $1,423 million were classified in "Accrued expenses and other liabilities" and "Other non-current liabilities", respectively. The Company has entered into various short-term operating leases, primarily for marketing billboards, with an initial term of twelve months or less. These leases are not recorded on the Company's Consolidated Balance Sheets. All operating lease expense is recognized on a straight-line basis over the lease term.

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments.

Information related to the Company's right-of-use assets and related lease liabilities were as follows:



	Three Months Ended
	March 31, 2020		March 31, 2019
	(in thousands)
Cash paid for operating lease liabilities	$	57,490	$	37,653
Right-of-use assets obtained in exchange for new operating lease obligations (1)	51,824		842,395

(1) In the three months ended March 31, 2019, the balance includes $743 million for operating leases existing on January 1, 2019.

Other Current Assets

Other current assets consisted of the following:



	As of
	March 31, 2020		December 31, 2019
	(in thousands)
Trade receivables	$	539,916	$	454,399
Prepaid expenses	214,350		180,999
Other receivables	541,631		524,669
Total other current assets	$	1,295,897	$	1,160,067