Balance Sheet Components

6 Months Ended

Jun. 30, 2022

Balance Sheet Components Disclosure [Abstract]

Balance Sheet Components

Balance Sheet Components

Content Assets, Net

Content assets consisted of the following:

	As of
	June 30, 2022		December 31, 2021
	(in thousands)
Licensed content, net	$	13,025,936	$	13,799,221
Produced content, net
Released, less amortization	7,308,112		6,877,743
In production	11,411,491		9,235,975
In development and pre-production	787,660		1,006,600
	19,507,263		17,120,318
Content assets, net	$	32,533,199	$	30,919,539

As of June 30, 2022, approximately $5,657 million, $2,907 million, and $1,837 million of the $13,026 million unamortized cost of the licensed content is expected to be amortized in each of the next three years.  As of June 30, 2022, approximately $2,905 million, $1,940 million, and $1,225 million of the $7,308 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, 2022, the amount of accrued participations and residuals was not material.

The following tables represent the amortization of content assets:

	Three Months Ended
	June 30, 2022		June 30, 2021
	(in thousands)
Licensed content	$	1,899,782	$	1,884,638
Produced content	1,361,566		922,165
Total	$	3,261,348	$	2,806,803

	Six Months Ended
	June 30, 2022		June 30, 2021
	(in thousands)
Licensed content	$	3,784,220	$	3,713,884
Produced content	2,643,493		1,812,115
Total	$	6,427,713	$	5,525,999

Property and Equipment, Net

Property and equipment and accumulated depreciation consisted of the following:

	As of
	June 30, 2022		December 31, 2021		Estimated Useful Lives
	(in thousands)
Land	$	84,726	$	82,381
Buildings	50,026		48,123		30 years
Leasehold improvements	984,914		863,342		Over life of lease
Furniture and fixtures	150,978		139,809		3 years
Information technology	422,044		380,452		3 years
Corporate aircraft	110,978		110,978		8 years
Machinery and equipment	27,059		32,426		3-5 years
Capital work-in-progress	196,091		282,248
Property and equipment, gross	2,026,816		1,939,759
Less: Accumulated depreciation	(664,896)		(616,306)
Property and equipment, net	$	1,361,920	$	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 also 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, 2022		June 30, 2021
	(in thousands)
Cash paid for operating lease liabilities	$	99,758	$	79,472
Right-of-use assets obtained in exchange for new operating lease obligations	39,304		183,351

	Six Months Ended
	June 30, 2022		June 30, 2021
	(in thousands)
Cash paid for operating lease liabilities	$	202,899	$	161,911
Right-of-use assets obtained in exchange for new operating lease obligations	180,602		232,796

	As of
	June 30, 2022		December 31, 2021
	(in thousands)
Operating lease right-of-use assets, net	$	2,341,422	$	2,446,573
Current operating lease liabilities	336,925		315,189
Non-current operating lease liabilities	2,338,829		2,408,486
Total operating lease liabilities	$	2,675,754	$	2,723,675

Other Current Assets

Other current assets consisted of the following:

	As of
	June 30, 2022		December 31, 2021
	(in thousands)
Trade receivables	$	765,386	$	804,320
Prepaid expenses	368,303		323,818
Other	887,640		913,883
Total other current assets	$	2,021,329	$	2,042,021