Balance Sheet Components

3 Months Ended

Mar. 31, 2022

Balance Sheet Components Disclosure [Abstract]

Balance Sheet Components

Balance Sheet Components

Content Assets, Net

Content assets consisted of the following:

	As of
	March 31, 2022		December 31, 2021
	(in thousands)
Licensed content, net	$	12,923,692	$	13,799,221
Produced content, net
Released, less amortization	7,111,245		6,877,743
In production	10,175,960		9,235,975
In development and pre-production	981,023		1,006,600
	18,268,228		17,120,318
Content assets, net	$	31,191,920	$	30,919,539

As of March 31, 2022, approximately $5,606 million, $2,963 million, and $1,815 million of the $12,924 million unamortized cost of the licensed content is expected to be amortized in each of the next three years.  As of March 31, 2022, approximately $2,807 million, $1,933 million, and $1,182 million of the $7,111 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, 2022, the amount of accrued participations and residuals was not material.

The following tables represent the amortization of content assets:

	Three Months Ended
	March 31, 2022		March 31, 2021
	(in thousands)
Licensed content	$	1,884,438	$	1,829,246
Produced content	1,281,927		889,950
Total	$	3,166,365	$	2,719,196

Property and Equipment, Net

Property and equipment and accumulated depreciation consisted of the following:

	As of
	March 31, 2022		December 31, 2021		Estimated Useful Lives
	(in thousands)
Land	$	82,381	$	82,381
Buildings	48,625		48,123		30 years
Leasehold improvements	983,209		863,342		Over life of lease
Furniture and fixtures	147,059		139,809		3 years
Information technology	448,608		380,452		3 years
Corporate aircraft	110,978		110,978		8 years
Machinery and equipment	32,613		32,426		3-5 years
Capital work-in-progress	220,422		282,248
Property and equipment, gross	2,073,895		1,939,759
Less: Accumulated depreciation	(690,132)		(616,306)
Property and equipment, net	$	1,383,763	$	1,323,453

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
	March 31, 2022		March 31, 2021
	(in thousands)
Cash paid for operating lease liabilities	$	103,141	$	82,439
Right-of-use assets obtained in exchange for new operating lease obligations	141,298		49,445

	As of
	March 31, 2022		December 31, 2021
	(in thousands)
Operating lease right-of-use assets, net	$	2,483,778	$	2,446,573
Current operating lease liabilities	330,936		315,189
Non-current operating lease liabilities	2,434,078		2,408,486
Total operating lease liabilities	$	2,765,014	$	2,723,675

Other Current Assets

Other current assets consisted of the following:

	As of
	March 31, 2022		December 31, 2021
	(in thousands)
Trade receivables	$	824,650	$	804,320
Prepaid expenses	419,134		323,818
Other	845,285		913,883
Total other current assets	$	2,089,069	$	2,042,021