Balance Sheet Components

6 Months Ended

Jun. 30, 2020

Balance Sheet Components Disclosure [Abstract]

Content Assets, Net

Content assets consisted of the following:



	As of
	June 30, 2020		December 31, 2019
	(in thousands)
Licensed content, net	$	14,632,723	$	14,703,352

Produced content, net
Released, less amortization	5,034,139		4,382,685
In production	4,717,598		4,750,664
In development and pre-production	770,657		667,866
	10,522,394		9,801,215

Total	$	25,155,117	$	24,504,567

As of June 30, 2020, approximately $5,776 million, $3,756 million, and $2,410 million of the $14,633 million unamortized cost of the licensed content is expected to be amortized in each of the next three years. As of June 30, 2020, approximately $1,813 million, $1,395 million, and $1,012 million of the $5,034 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 June 30, 2020, the amount of accrued participations and residuals was not material.

The following table represents the amortization of content assets:



	Three Months Ended
	June 30, 2020		June 30, 2019
	(in thousands)
Licensed content	$	1,883,070	$	1,797,179
Produced content	724,089		434,736
Total	$	2,607,159	$	2,231,915



	Six Months Ended
	June 30, 2020		June 30, 2019
	(in thousands)
Licensed content	$	3,743,240	$	3,571,468
Produced content	1,347,304		785,133
Total	$	5,090,544	$	4,356,601

Property and Equipment, Net

Property and equipment and accumulated depreciation consisted of the following:



	As of
	June 30, 2020			December 31, 2019			Estimated Useful Lives
	(in thousands)
Land	$	13,560		$	6,125
Buildings	41,896			33,141			30 years
Leasehold improvements	378,345			354,999			Over life of lease
Furniture and fixtures	93,092			87,465			3-15 years
Information technology	258,875			243,565			3 years
Corporate aircraft	109,641			108,995			8 years
Machinery and equipment	43,863			46,415			3-5 years
Capital work-in-progress	272,875			100,521
Property and equipment, gross	1,212,147			981,226
Less: Accumulated depreciation	(460,206		)	(416,005		)
Property and equipment, net	$	751,941		$	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 June 30, 2020, total right-of-use assets were approximately $1,812 million and total operating lease liabilities were approximately $1,914 million, of which $227 million and $1,687 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
	June 30, 2020		June 30, 2019
	(in thousands)
Cash paid for operating lease liabilities	$	59,473	$	41,320
Right-of-use assets obtained in exchange for new operating lease obligations	364,606		230,499



	Six Months Ended
	June 30, 2020		June 30, 2019
	(in thousands)
Cash paid for operating lease liabilities	$	116,963	$	78,973
Right-of-use assets obtained in exchange for new operating lease obligations (1)	416,430		1,072,894

(1) In the six months ended June 30, 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
	June 30, 2020		December 31, 2019
	(in thousands)
Trade receivables	$	565,668	$	454,399
Prepaid expenses	204,752		180,999
Other	640,471		524,669
Total other current assets	$	1,410,891	$	1,160,067