Balance Sheet Components

6 Months Ended

Jun. 30, 2023

Balance Sheet Components Disclosure [Abstract]

Balance Sheet Components

Balance Sheet Components

Content Assets, Net

Content assets consisted of the following:

	As of
	June 30, 2023		December 31, 2022
	(in thousands)
Licensed content, net	$	12,622,409	$	12,732,549
Produced content, net
Released, less amortization	9,286,399		9,110,518
In production	9,796,704		10,255,940
In development and pre-production	815,262		637,706
	19,898,365		20,004,164
Content assets, net	$	32,520,774	$	32,736,713

As of June 30, 2023, approximately $5,495 million, $2,844 million, and $1,971 million of the $12,622 million unamortized cost of the licensed content is expected to be amortized in each of the next three years.  As of June 30, 2023, approximately $3,544 million, $2,420 million, and $1,710 million of the $9,286 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, 2023, the amount of accrued participations and residuals was not material.

The following table represents the amortization of content assets:

	Three Months Ended
	June 30, 2023		June 30, 2022
	(in thousands)
Licensed content	$	1,779,321	$	1,899,782
Produced content	1,630,700		1,361,566
Total	$	3,410,021	$	3,261,348

	Six Months Ended
	June 30, 2023		June 30, 2022
	(in thousands)
Licensed content	$	3,502,999	$	3,784,220
Produced content	3,367,006		2,643,493
Total	$	6,870,005	$	6,427,713

Property and Equipment, Net

Property and equipment and accumulated depreciation consisted of the following:

	As of
	June 30, 2023		December 31, 2022		Estimated Useful Lives
	(in thousands)
Land	$	86,662	$	85,005
Buildings	60,720		52,106		30 years
Leasehold improvements	1,068,757		1,040,570		Over life of lease
Furniture and fixtures	155,401		153,682		3 years
Information technology	461,590		442,681		3 years
Corporate aircraft	133,998		115,578		8-10 years
Machinery and equipment	27,384		26,821		3-5 years
Capital work-in-progress	348,194		235,555
Property and equipment, gross	2,342,706		2,151,998
Less: Accumulated depreciation	(870,738)		(753,741)
Property and equipment, net	$	1,471,968	$	1,398,257

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.

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

	Three Months Ended
	June 30, 2023		June 30, 2022
	(in thousands)
Cash paid for operating lease liabilities	$	114,760	$	99,758
Right-of-use assets obtained in exchange for new operating lease obligations	91,572		39,304

	Six Months Ended
	June 30, 2023		June 30, 2022
	(in thousands)
Cash paid for operating lease liabilities	$	228,167	$	202,899
Right-of-use assets obtained in exchange for new operating lease obligations	112,466		180,602

	As of
	June 30, 2023		December 31, 2022
	(in thousands)
Operating lease right-of-use assets, net	$	2,187,732	$	2,227,122
Current operating lease liabilities	376,847		355,985
Non-current operating lease liabilities	2,147,306		2,222,503
Total operating lease liabilities	$	2,524,153	$	2,578,488

Other Current Assets

Other current assets consisted of the following:

	As of
	June 30, 2023		December 31, 2022
	(in thousands)
Trade receivables	$	1,218,326	$	988,898
Prepaid expenses	481,546		392,735
Other	1,229,475		1,826,388
Total other current assets	$	2,929,347	$	3,208,021

The decrease in Other was primarily driven by receipt of amounts due under a modified content licensing arrangement.