Balance Sheet Components

12 Months Ended

Dec. 31, 2021

Balance Sheet Related Disclosures [Abstract]

Content Assets, Net

Content assets consisted of the following:


	As of December 31,
	2021		2020
	(in thousands)
Licensed content, net	$	13,799,221	$	13,747,607

Produced content, net
Released, less amortization	6,877,743		5,809,681
In production	9,235,975		4,827,455
In development and pre-production	1,006,600		999,207
	17,120,318		11,636,343

Content assets, net	$	30,919,539	$	25,383,950

As of December 31, 2021, approximately $6,008 million, $3,149 million, and $1,944 million of the $13,799 million unamortized cost of the licensed content is expected to be amortized in each of the next three years. As of December 31, 2021, approximately $2,736 million, $1,884 million, and $1,138 million of the $6,878 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 December 31, 2021, the amount of accrued participations and residuals was not material.

The following table represents the amortization of content assets:


	Year ended December 31,
	2021		2020		2019
	(in thousands)
Licensed content	$	8,055,811	$	7,544,631	$	7,242,799
Produced content	4,174,556		3,262,281		1,973,448
Total	$	12,230,367	$	10,806,912	$	9,216,247

Property and Equipment, Net

Property and equipment and accumulated depreciation consisted of the following:


	As of December 31,				Estimated Useful Lives (in Years)
	2021		2020
	(in thousands)
Land	$	82,381	$	50,700
Buildings	48,123		42,717		30 years
Leasehold improvements	863,342		524,537		Over life of lease
Furniture and fixtures	139,809		110,185		3 years
Information technology	380,452		283,014		3 years
Corporate aircraft	110,978		110,629		8 years
Machinery and equipment	32,426		34,633		3-5 years
Capital work-in-progress	282,248		298,558
Property and equipment, gross	1,939,759		1,454,973
Less: Accumulated depreciation	(616,306)		(494,790)
Property and equipment, net	$	1,323,453	$	960,183

Leases

The Company has entered into operating leases primarily for real estate. These leases generally have terms which range from 1 year to 15 years, and often include one or more options to renew. These renewal terms can extend the lease term from 1 year to 20 years, and are included in the lease term when it is reasonably certain that the Company will exercise the option. 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. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company has entered into various short-term operating leases 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. The Company has certain contracts for real estate which may contain lease and non-lease components which it has elected to treat as a single lease component.

The components of lease costs for the years ended December 31, 2021, 2020 and 2019 were as follows:


	Year ended December 31,
	2021		2020		2019
	(in thousands)
Operating lease cost	$	389,805	$	323,905	$	218,142
Short-term lease cost	152,765		116,606		229,747
Total lease cost	$	542,570	$	440,511	$	447,889

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


	Year ended December 31,
	2021		2020		2019
	(in thousands)
Cash paid for operating lease liabilities	$	349,586	$	259,559	$	192,084
Right-of-use assets obtained in exchange for new operating lease obligations (1)	764,142		729,942		1,672,462

(1) Balance as of December 31, 2019 includes $743 million for operating leases existing on January 1, 2019.


	As of December 31,
	2021			2020
	(in thousands, except lease term and discount rate)
Operating lease right-of-use assets, net	$	2,446,573		$	2,037,726

Current operating lease liabilities	$	315,189		$	256,222
Non-current operating lease liabilities	2,408,486			1,945,631
Total operating lease liabilities	$	2,723,675		$	2,201,853

Weighted-average remaining lease term	9.2 years			8.9 years
Weighted-average discount rate	3.1		%	3.6		%

Maturities of operating lease liabilities as of December 31, 2021 were as follows (in thousands):


Due in 12 month period ended December 31,
2022	$	395,932
2023	378,774
2024	358,442
2025	340,028
2026	335,151
Thereafter	1,332,662
	3,140,989
Less imputed interest	(417,314)
Total operating lease liabilities	2,723,675

The Company has additional operating leases for real estate of $366 million which have not commenced as of December 31, 2021, and as such, have not been recognized on the Company's Consolidated Balance Sheets. These operating leases are expected to commence in 2022 and 2023 with lease terms between 5 year and 14 years.

Other Current Assets

Other current assets consisted of the following:


	As of
	December 31, 2021		December 31, 2020
	(in thousands)
Trade receivables	$	804,320	$	610,819
Prepaid expenses	323,818		203,042
Other	913,883		742,169
Total other current assets	$	2,042,021	$	1,556,030