Balance Sheet Components

6 Months Ended

Jun. 30, 2021

Balance Sheet Components Disclosure [Abstract]

Balance Sheet Components

Balance Sheet Components

Content Assets, Net

Content assets consisted of the following:

	As of
	June 30, 2021		December 31, 2020
	(in thousands)
Licensed content, net	$	13,111,259	$	13,747,607
Produced content, net
Released, less amortization	5,847,391		5,809,681
In production	7,348,810		4,827,455
In development and pre-production	984,180		999,207
	14,180,381		11,636,343
Content assets, net	$	27,291,640	$	25,383,950

As of June 30, 2021, approximately $5,692 million, $3,209 million, and $1,904 million of the $13,111 million unamortized cost of the licensed content is expected to be amortized in each of the next three years.  As of June 30, 2021, approximately $2,233 million, $1,684 million, and $1,026 million of the $5,847 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, 2021, the amount of accrued participations and residuals was not material.

The following tables represent the amortization of content assets:

	Three Months Ended
	June 30, 2021		June 30, 2020
	(in thousands)
Licensed content	$	1,884,638	$	1,883,070
Produced content	922,165		724,089
Total	$	2,806,803	$	2,607,159

	Six Months Ended
	June 30, 2021		June 30, 2020
	(in thousands)
Licensed content	$	3,713,884	$	3,743,240
Produced content	1,812,115		1,347,304
Total	$	5,525,999	$	5,090,544

Property and Equipment, Net

Property and equipment and accumulated depreciation consisted of the following:

	As of
	June 30, 2021		December 31, 2020		Estimated Useful Lives
	(in thousands)
Land	$	56,066	$	50,700
Buildings	48,007		42,717		30 years
Leasehold improvements	599,574		524,537		Over life of lease
Furniture and fixtures	115,829		110,185		3 years
Information technology	323,771		283,014		3 years
Corporate aircraft	110,864		110,629		8 years
Machinery and equipment	32,732		34,633		3-5 years
Capital work-in-progress	373,559		298,558
Property and equipment, gross	1,660,402		1,454,973
Less: Accumulated depreciation	(552,965)		(494,790)
Property and equipment, net	$	1,107,437	$	960,183

Leases

The Company has entered into operating leases primarily for real estate. 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. 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 operating right-of-use assets and related operating lease liabilities were as follows:

	Three Months Ended
	June 30, 2021		June 30, 2020
	(in thousands)
Cash paid for operating lease liabilities	$	79,472	$	59,473
Right-of-use assets obtained in exchange for new operating lease obligations	183,351		364,606

	Six Months Ended
	June 30, 2021		June 30, 2020
	(in thousands)
Cash paid for operating lease liabilities	$	161,911	$	116,963
Right-of-use assets obtained in exchange for new operating lease obligations	232,796		416,430

	As of
	June 30, 2021		December 31, 2020
	(in thousands)
Operating lease right-of-use assets, net	$	2,102,676	$	2,037,726
Current operating lease liabilities	275,040		256,222
Non-current operating lease liabilities	2,042,067		1,945,631
Total operating lease liabilities	$	2,317,107	$	2,201,853

Other Current Assets

Other current assets consisted of the following:

	As of
	June 30, 2021		December 31, 2020
	(in thousands)
Trade receivables	$	775,222	$	610,819
Prepaid expenses	294,837		203,042
Other	756,687		742,169
Total other current assets	$	1,826,746	$	1,556,030