Balance Sheet Components

9 Months Ended

Sep. 30, 2020

Balance Sheet Components Disclosure [Abstract]

Content Assets, Net

Content assets consisted of the following:



	As of
	September 30, 2020		December 31, 2019
	(in thousands)
Licensed content, net	$	14,297,143	$	14,703,352

Produced content, net
Released, less amortization	5,186,247		4,382,685
In production	4,696,990		4,750,664
In development and pre-production	887,253		667,866
	10,770,490		9,801,215

Total	$	25,067,633	$	24,504,567

As of September 30, 2020, approximately $5,743 million, $3,675 million, and $2,264 million of the $14,297 million unamortized cost of the licensed content is expected to be amortized in each of the next three years. As of September 30, 2020, approximately $1,894 million, $1,465 million, and $1,025 million of the $5,186 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 September 30, 2020, the amount of accrued participations and residuals was not material.

The following table represents the amortization of content assets:



	Three Months Ended
	September 30, 2020		September 30, 2019
	(in thousands)
Licensed content	$	1,885,259	$	1,810,757
Produced content	848,484		469,220
Total	$	2,733,743	$	2,279,977



	Nine Months Ended
	September 30, 2020		September 30, 2019
	(in thousands)
Licensed content	$	5,628,499	$	5,382,225
Produced content	2,195,788		1,254,353
Total	$	7,824,287	$	6,636,578

Property and Equipment, Net

Property and equipment and accumulated depreciation consisted of the following:



	As of
	September 30, 2020			December 31, 2019			Estimated Useful Lives
	(in thousands)
Land	$	13,560		$	6,125
Buildings	41,894			33,141			30 years
Leasehold improvements	387,172			354,999			Over life of lease
Furniture and fixtures	95,240			87,465			3-15 years
Information technology	264,358			243,565			3 years
Corporate aircraft	110,621			108,995			8 years
Machinery and equipment	44,111			46,415			3-5 years
Capital work-in-progress	345,347			100,521
Property and equipment, gross	1,302,303			981,226
Less: Accumulated depreciation	(474,185		)	(416,005		)
Property and equipment, net	$	828,118		$	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 September 30, 2020, total right-of-use assets were approximately $1,939 million and total operating lease liabilities were approximately $2,090 million, of which $237 million and $1,853 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
	September 30, 2020		September 30, 2019
	(in thousands)
Cash paid for operating lease liabilities	$	70,917	$	51,767
Right-of-use assets obtained in exchange for new operating lease obligations	175,901		77,549



	Nine Months Ended
	September 30, 2020		September 30, 2019
	(in thousands)
Cash paid for operating lease liabilities	$	187,880	$	130,740
Right-of-use assets obtained in exchange for new operating lease obligations (1)	592,331		1,150,443

(1) In the nine months ended September 30, 2019, the balance includes $743 million for operating leases existing on January 1, 2019. The $592 million in additions in the nine months ended September 30, 2020 primarily relate to the additions of corporate office space.

Other Current Assets

Other current assets consisted of the following:



	As of
	September 30, 2020		December 31, 2019
	(in thousands)
Trade receivables	$	604,789	$	454,399
Prepaid expenses	209,218		180,999
Other	620,082		524,669
Total other current assets	$	1,434,089	$	1,160,067