Balance Sheet Components

9 Months Ended

Sep. 30, 2022

Balance Sheet Components Disclosure [Abstract]

Balance Sheet Components

Balance Sheet Components

Content Assets, Net

Content assets consisted of the following:

	As of
	September 30, 2022		December 31, 2021
	(in thousands)
Licensed content, net	$	12,571,064	$	13,799,221
Produced content, net
Released, less amortization	7,936,197		6,877,743
In production	11,484,835		9,235,975
In development and pre-production	785,244		1,006,600
	20,206,276		17,120,318
Content assets, net	$	32,777,340	$	30,919,539

As of September 30, 2022, approximately $5,500 million, $2,836 million, and $1,865 million of the $12,571 million unamortized cost of the licensed content is expected to be amortized in each of the next three years, respectively.  As of September 30, 2022, approximately $3,131

million, $2,058 million, and $1,363 million of the $7,936 million unamortized cost of the produced content that has been released is expected to be amortized in each of the next three years, respectively.

As of September 30, 2022, the amount of accrued participations and residuals was not material.

The following tables represent the amortization of content assets:

	Three Months Ended
	September 30, 2022		September 30, 2021
	(in thousands)
Licensed content	$	1,967,720	$	1,965,514
Produced content	1,685,872		997,537
Total	$	3,653,592	$	2,963,051

	Nine Months Ended
	September 30, 2022		September 30, 2021
	(in thousands)
Licensed content	$	5,751,940	$	5,679,398
Produced content	4,329,365		2,809,652
Total	$	10,081,305	$	8,489,050

Property and Equipment, Net

Property and equipment and accumulated depreciation consisted of the following:

	As of
	September 30, 2022		December 31, 2021		Estimated Useful Lives
	(in thousands)
Land	$	84,726	$	82,381
Buildings	50,026		48,123		30 years
Leasehold improvements	1,037,193		863,342		Over life of lease
Furniture and fixtures	154,980		139,809		3 years
Information technology	427,223		380,452		3 years
Corporate aircraft	110,978		110,978		8 years
Machinery and equipment	27,277		32,426		3-5 years
Capital work-in-progress	190,373		282,248
Property and equipment, gross	2,082,776		1,939,759
Less: Accumulated depreciation	(710,022)		(616,306)
Property and equipment, net	$	1,372,754	$	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
	September 30, 2022		September 30, 2021
	(in thousands)
Cash paid for operating lease liabilities	$	105,848	$	89,916
Right-of-use assets obtained in exchange for new operating lease obligations	2,938		252,377

	Nine Months Ended
	September 30, 2022		September 30, 2021
	(in thousands)
Cash paid for operating lease liabilities	$	308,747	$	251,827
Right-of-use assets obtained in exchange for new operating lease obligations	183,540		485,173

	As of
	September 30, 2022		December 31, 2021
	(in thousands)
Operating lease right-of-use assets, net	$	2,211,507	$	2,446,573
Current operating lease liabilities	334,339		315,189
Non-current operating lease liabilities	2,209,725		2,408,486
Total operating lease liabilities	$	2,544,064	$	2,723,675

Other Current Assets

Other current assets consisted of the following:

	As of
	September 30, 2022		December 31, 2021
	(in thousands)
Trade receivables	$	875,042	$	804,320
Prepaid expenses	391,832		323,818
Other	1,436,296		913,883
Total other current assets	$	2,703,170	$	2,042,021

The increase in Other was primarily due to a modification of a content licensing arrangement.