UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  to                 

Commission File Number: 001-35727

Netflix, Inc.

(Exact name of Registrant as specified in its charter)

Delaware			77-0467272
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification Number)
121 Albright Way,	Los Gatos,	California	95032
(Address of principal executive offices)			(Zip Code)

(408) 540-3700

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.001 per share	NFLX	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No   ☐  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of June 30, 2024, there were 429,164,615 shares of the registrant’s common stock, par value $0.001, outstanding.

Table of Contents

		Page
	Part I. Financial Information
Item 1.	Consolidated Financial Statements
	Consolidated Statements of Operations	3
	Consolidated Statements of Comprehensive Income	4
	Consolidated Statements of Cash Flows	5
	Consolidated Balance Sheets	6
	Consolidated Statements of Stockholders' Equity	7
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	35
	Part II. Other Information
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 5.	Other Information	36
Item 6.	Exhibits	36
Exhibit Index		37
Signatures		37

2

NETFLIX, INC.

Consolidated Statements of Operations

(unaudited)

(in thousands, except per share data)

	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Revenues	$	9,559,310	$	8,187,301	$	18,929,750	$	16,348,804
Cost of revenues	5,174,143		4,673,470		10,151,216		9,477,095
Marketing	644,084		627,168		1,298,424		1,182,530
Technology and development	711,254		657,983		1,413,727		1,345,258
General and administrative	426,992		401,497		831,012		802,421
Operating income	2,602,837		1,827,183		5,235,371		3,541,500
Other income (expense):
Interest expense	(167,986)		(174,812)		(341,300)		(349,051)
Interest and other income (expense)	79,005		26,961		234,364		(44,243)
Income before income taxes	2,513,856		1,679,332		5,128,435		3,148,206
Provision for income taxes	(366,550)		(191,722)		(648,920)		(355,476)
Net income	$	2,147,306	$	1,487,610	$	4,479,515	$	2,792,730
Earnings per share:
Basic	$	4.99	$	3.35	$	10.39	$	6.28
Diluted	$	4.88	$	3.29	$	10.16	$	6.18
Weighted-average shares of common stock outstanding:
Basic	430,065		443,881		431,078		444,559
Diluted	439,739		451,572		440,697		451,990

See accompanying notes to the consolidated financial statements.

3

NETFLIX, INC.

Consolidated Statements of Comprehensive Income

(unaudited)

(in thousands)

	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Net income	$	2,147,306	$	1,487,610	$	4,479,515	$	2,792,730
Other comprehensive income:
Foreign currency translation adjustments	(75,246)		52,429		(148,298)		78,040
Cash flow hedges:
Net unrealized gains	123,733		—		300,337		—
Reclassification of net gains included in net income	(25,722)		—		(17,208)		—
Net change, net of income tax expense of $29 million, $0, $84 million, and $0, respectively	98,011		—		283,129		—
Total other comprehensive income	22,765		52,429		134,831		78,040
Comprehensive income	$	2,170,071	$	1,540,039	$	4,614,346	$	2,870,770

See accompanying notes to the consolidated financial statements.

4

NETFLIX, INC.

Consolidated Statements of Cash Flows

(unaudited)

(in thousands)

	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Cash flows from operating activities:
Net income	$	2,147,306	$	1,487,610	$	4,479,515	$	2,792,730
Adjustments to reconcile net income to net cash provided by operating activities:
Additions to content assets	(4,048,852)		(3,683,007)		(7,777,819)		(6,141,673)
Change in content liabilities	(366,572)		46,119		(556,013)		(308,672)
Amortization of content assets	3,769,690		3,410,021		7,440,495		6,870,005
Depreciation and amortization of property, equipment and intangibles	81,227		89,385		168,461		179,720
Stock-based compensation expense	68,766		78,030		145,111		177,129
Foreign currency remeasurement loss (gain) on debt	(42,692)		28,952		(173,493)		109,603
Other non-cash items	138,588		121,483		235,769		241,491
Deferred income taxes	(209,387)		(103,172)		(316,464)		(201,954)
Changes in operating assets and liabilities:
Other current assets	(28,959)		(183,049)		9,090		(271,571)
Accounts payable	(19,358)		38,332		(164,623)		(51,336)
Accrued expenses and other liabilities	(114,303)		177,831		137,479		363,130
Deferred revenue	4,236		49,647		30,751		47,257
Other non-current assets and liabilities	(88,843)		(117,950)		(154,890)		(186,887)
Net cash provided by operating activities	1,290,847		1,440,232		3,503,369		3,618,972
Cash flows from investing activities:
Purchases of property and equipment	(78,287)		(100,972)		(154,001)		(162,991)
Purchases of short-term investments	—		(303,228)		—		(504,862)
Proceeds from maturities of short-term investments	—		501,937		—		501,937
Net cash provided by (used in) investing activities	(78,287)		97,737		(154,001)		(165,916)
Cash flows from financing activities:
Repayments of debt	—		—		(400,000)		—
Proceeds from issuance of common stock	118,750		34,717		387,631		60,745
Repurchases of common stock	(1,599,998)		(645,146)		(3,599,998)		(1,045,247)
Taxes paid related to net share settlement of equity awards	(1,883)		—		(3,708)		—
Other financing activities	(6,250)		(38,920)		(6,250)		(38,920)
Net cash used in financing activities	(1,489,381)		(649,349)		(3,622,325)		(1,023,422)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(122,723)		39,626		(218,513)		66,049
Net increase (decrease) in cash, cash equivalents and restricted cash	(399,544)		928,246		(491,470)		2,495,683
Cash, cash equivalents and restricted cash at beginning of period	7,026,589		6,738,019		7,118,515		5,170,582
Cash, cash equivalents and restricted cash at end of period	$	6,627,045	$	7,666,265	$	6,627,045	$	7,666,265

See accompanying notes to the consolidated financial statements.

5

NETFLIX, INC.

Consolidated Balance Sheets

(in thousands, except share and par value data)

	As of
	June 30, 2024		December 31, 2023
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	6,624,939	$	7,116,913
Short-term investments	30,973		20,973
Other current assets	2,959,641		2,780,247
Total current assets	9,615,553		9,918,133
Content assets, net	31,927,355		31,658,056
Property and equipment, net	1,510,958		1,491,444
Other non-current assets	6,045,029		5,664,359
Total assets	$	49,098,895	$	48,731,992
Liabilities and Stockholders’ Equity
Current liabilities:
Current content liabilities	$	4,391,437	$	4,466,470
Accounts payable	598,557		747,412
Accrued expenses and other liabilities	1,876,244		1,803,960
Deferred revenue	1,473,720		1,442,969
Short-term debt	1,800,041		399,844
Total current liabilities	10,139,999		8,860,655
Non-current content liabilities	2,028,782		2,578,173
Long-term debt	12,180,024		14,143,417
Other non-current liabilities	2,637,397		2,561,434
Total liabilities	26,986,202		28,143,679
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock, $0.001 par value; 4,990,000,000 shares authorized at June 30, 2024 and December 31, 2023; 429,164,615 and 432,759,584 issued and outstanding at June 30, 2024 and December 31, 2023, respectively	5,680,061		5,145,172
Treasury stock at cost (22,229,834 and 16,078,268 shares at June 30, 2024 and December 31, 2023, respectively)	(10,547,055)		(6,922,200)
Accumulated other comprehensive loss	(89,114)		(223,945)
Retained earnings	27,068,801		22,589,286
Total stockholders’ equity	22,112,693		20,588,313
Total liabilities and stockholders’ equity	$	49,098,895	$	48,731,992

See accompanying notes to the consolidated financial statements.

6

NETFLIX, INC.

Consolidated Statements of Stockholders’ Equity

(unaudited)

(in thousands)

	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Total stockholders' equity, beginning balances	$	21,365,410	$	21,828,196	$	20,588,313	$	20,777,401
Common stock and additional paid-in capital:
Beginning balances	$	5,489,850	$	4,762,395	$	5,145,172	$	4,637,601
Issuance of common stock	121,445		33,783		389,778		59,478
Stock-based compensation expense	68,766		78,030		145,111		177,129
Ending balances	$	5,680,061	$	4,874,208	$	5,680,061	$	4,874,208
Treasury stock:
Beginning balances	$	(8,934,056)	$	(1,228,920)	$	(6,922,200)	$	(824,190)
Repurchases of common stock to be held as treasury stock	(1,612,999)		(647,833)		(3,624,855)		(1,052,563)
Ending balances	$	(10,547,055)	$	(1,876,753)	$	(10,547,055)	$	(1,876,753)
Accumulated other comprehensive loss:
Beginning balances	$	(111,879)	$	(191,695)	$	(223,945)	$	(217,306)
Other comprehensive income	22,765		52,429		134,831		78,040
Ending balances	$	(89,114)	$	(139,266)	$	(89,114)	$	(139,266)
Retained earnings:
Beginning balances	$	24,921,495	$	18,486,416	$	22,589,286	$	17,181,296
Net income	2,147,306		1,487,610		4,479,515		2,792,730
Ending balances	$	27,068,801	$	19,974,026	$	27,068,801	$	19,974,026
Total stockholders' equity, ending balances	$	22,112,693	$	22,832,215	$	22,112,693	$	22,832,215

See accompanying notes to the consolidated financial statements.

7

NETFLIX, INC.

Notes to Consolidated Financial Statements

(unaudited)

1. Basis of Presentation and Summary of Significant Accounting Policies

The accompanying interim consolidated financial statements of Netflix, Inc. and its wholly owned subsidiaries (the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States (“U.S.”) and are consistent in all material respects with those applied in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) on January 26, 2024. The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the amortization of content assets and the recognition and measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On a regular basis, the Company evaluates the assumptions, judgments and estimates. Actual results may differ from these estimates.

The interim financial information is unaudited, but reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Interim results are not necessarily indicative of the results for a full year.

The following is provided to update the Company’s significant accounting policies previously described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

Derivative Financial Instruments and Hedging Activities

The Company uses derivative and non-derivative instruments to manage foreign exchange risk related to its ongoing business operations with the primary objective of reducing earnings and cash flow volatility associated with fluctuations in foreign exchange rates.

The Company recognizes derivative instruments at fair value as either assets (presented in “Other current assets” and “Other non-current assets”) or liabilities (presented in “Accrued expenses and other liabilities” and “Other non-current liabilities”) on the Company’s Consolidated Balance Sheets. The Company classifies derivative instruments in the Level 2 category within the fair value hierarchy.

Cash flow hedges

The Company enters into forward contracts to manage the foreign exchange risk on forecasted revenue transactions denominated in currencies other than the U.S. dollar, as well as the foreign exchange risk on forecasted transactions and firm commitments related to the licensing and production of foreign currency-denominated content assets. These forward contracts are designated as cash flow hedges of foreign currency firm commitments and forecasted transactions and generally have maturities of 24 months or less. The hedging contracts may reduce, but do not entirely eliminate, the effect of foreign currency exchange movements, and the Company may choose not to hedge certain exposures.

The gain or loss on derivative instruments designated as cash flow hedges of forecasted foreign currency revenue is initially reported as a component of accumulated other comprehensive income (“AOCI”) and reclassified into “Revenues” on the Consolidated Statements of Operations in the same period the forecasted transaction affects earnings. The gain or loss on derivative instruments designated as cash flow hedges of firmly committed or forecasted transactions related to the licensing and production of content assets is initially reported as a component of AOCI and reclassified into “Cost of Revenues” on the Consolidated Statements of Operations in the same period the hedged transaction affects earnings, which occurs as the underlying hedged content assets are amortized. Cash flows from hedging activities are classified in the same category as the cash flows for the underlying item being hedged within "Net cash provided by operating activities" on the Consolidated Statements of Cash Flows.

In the event that the likelihood of occurrence of the underlying forecasted transactions is determined to be probable not to occur, the gains or losses on the related cash flow hedges are reclassified from AOCI to “Interest and other income (expense)” in the Consolidated Statements of Operations in the period of dedesignation.

Net investment hedges

The Company designates a portion of its foreign currency-denominated debt as net investment hedges to manage the foreign exchange risk on its investment in certain foreign subsidiaries. These hedges may reduce, but do not entirely eliminate, the effect of foreign currency exchange movements, and the Company may choose not to hedge certain exposures. The gains or losses on these non-derivative instruments are reported as a component of AOCI as part of the cumulative translation adjustment on the Company’s Consolidated Balance Sheets. The accumulated gains and losses remain in AOCI until the hedged net investment is sold or liquidated, at which point the amounts recognized in AOCI are reclassified into earnings.

8

Derivative instruments not designated as hedging instruments

The Company enters into forward contracts to manage the foreign exchange risk on intercompany transactions and monetary assets and liabilities that are not denominated in the functional currencies of the Company and its subsidiaries. These derivative instruments are not designated as hedging instruments and may reduce, but do not entirely eliminate, the effect of foreign currency exchange movements. The gain or loss on derivative instruments not designated as hedging instruments are recorded in “Interest and other income (expense)” in the Consolidated Statements of Operations. Cash flows related to these derivative instruments are classified within "Net cash provided by operating activities" on the Consolidated Statements of Cash Flows.

See Note 7 Derivative Financial Instruments and Hedging Activities to the consolidated financial statements for further information regarding the Company’s derivative and non-derivative financial instruments.

Stock-based Compensation

The Company grants non-qualified stock options to its employees on a monthly basis. For certain executive officers, the Company grants restricted stock units ("RSUs") and performance-based restricted stock units ("PSUs"). Stock-based compensation expense is based on the fair value of the stock awards at the grant date and is recognized, net of forfeitures, over the requisite service period. See Note 9 Stockholders' Equity to the consolidated financial statements for further information regarding stock-based compensation.

Recently issued accounting pronouncements not yet adopted

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280 on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-07.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-09.

2. Revenue Recognition

The following tables summarize streaming revenues, paid net membership additions, and ending paid memberships by region for the three and six months ended June 30, 2024 and June 30, 2023, respectively. Hedging gains and losses are included in “Streaming revenues” for the three and six months ended June 30, 2024. No hedge gains and losses were recognized as “Streaming revenues” in the comparative prior year periods. See Note 7 Derivative Financial Instruments and Hedging Activities for further information.

United States and Canada (UCAN)

	As of/Three Months Ended				As of/Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Streaming revenues	$	4,295,560	$	3,599,448	$	8,519,875	$	7,208,093
Paid net membership additions	1,451		1,173		3,981		1,275
Paid memberships at end of period (1)	84,109		75,571		84,109		75,571

Europe, Middle East, and Africa (EMEA)

9

	As of/Three Months Ended				As of/Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Streaming revenues	$	3,007,772	$	2,562,170	$	5,965,965	$	5,079,811
Paid net membership additions	2,235		2,434		5,151		3,078
Paid memberships at end of period (1)	93,964		79,807		93,964		79,807

Latin America (LATAM)

	As of/Three Months Ended				As of/Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Streaming revenues	$	1,204,145	$	1,077,435	$	2,369,153	$	2,147,627
Paid net membership additions	1,530		1,217		3,253		767
Paid memberships at end of period (1)	49,250		42,466		49,250		42,466

Asia-Pacific (APAC)

	As of/Three Months Ended				As of/Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Streaming revenues	$	1,051,833	$	919,273	$	2,074,757	$	1,852,796
Paid net membership additions	2,829		1,068		4,986		2,523
Paid memberships at end of period (1)	50,324		40,546		50,324		40,546

(1) A paid membership (also referred to as a paid subscription) is defined as a membership that has the right to receive Netflix service following sign-up and a method of payment being provided, and that is not part of a free trial or certain other promotions that may be offered by the Company to new or rejoining members. Certain members have the option to add extra member sub accounts. These extra member sub accounts are not included in paid memberships. A membership is canceled and ceases to be reflected in the above metrics as of the effective cancellation date. Voluntary cancellations generally become effective at the end of the prepaid membership period. Involuntary cancellations, as a result of a failed method of payment, become effective immediately. Memberships are assigned to territories based on the geographic location used at time of sign-up as determined by the Company’s internal systems, which utilize industry standard geo-location technology.

Deferred revenue consists of membership fees billed that have not been recognized, as well as gift cards and other prepaid memberships that have not been fully redeemed. As of June 30, 2024, total deferred revenue was $1,474 million, the vast majority of which was related to membership fees billed that are expected to be recognized as revenue within the next month. The remaining deferred revenue balance, which is related to gift cards and other prepaid memberships, will be recognized as revenue over the period of service after redemption, which is expected to occur over the next 12 months. The $31 million increase in deferred revenue as compared to the balance of $1,443 million as of December 31, 2023 is a result of the increase in membership fees billed due to increased memberships and price increases.

10

3. Earnings Per Share

Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential outstanding shares of common stock during the period. Potential shares of common stock are calculated using the treasury-stock method and consist of incremental shares issuable upon the assumed exercise of stock options and vesting of time-based and performance-based restricted stock units. The computation of earnings per share is as follows:

	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands, except per share data)
Basic earnings per share:
Net income	$	2,147,306	$	1,487,610	$	4,479,515	$	2,792,730
Shares used in computation:
Weighted-average shares of common stock outstanding	430,065		443,881		431,078		444,559
Basic earnings per share	$	4.99	$	3.35	$	10.39	$	6.28
Diluted earnings per share:
Net income	$	2,147,306	$	1,487,610	$	4,479,515	$	2,792,730
Shares used in computation:
Weighted-average shares of common stock outstanding	430,065		443,881		431,078		444,559
Effect of dilutive stock-based awards	9,674		7,691		9,619		7,431
Weighted-average number of shares	439,739		451,572		440,697		451,990
Diluted earnings per share	$	4.88	$	3.29	$	10.16	$	6.18

The following table summarizes the potential shares of common stock excluded from the diluted calculation as their inclusion would have been anti-dilutive:

	Three Months Ended		Six Months Ended
	June 30, 2024	June 30, 2023	June 30, 2024	June 30, 2023
	(in thousands)
Stock-based awards	118	4,348	402	5,097

11

4. Cash, Cash Equivalents, Restricted Cash, and Short-term Investments

The Company classifies short-term investments, which consist of marketable securities with original maturities in excess of 90 days as available-for-sale. The Company does not buy and hold securities principally for the purpose of selling them in the near future. The Company’s policy is focused on the preservation of capital, liquidity and return. From time to time, the Company may sell certain securities but the objectives are generally not to generate profits on short-term differences in price.

The following tables summarize the Company's cash, cash equivalents, restricted cash and short-term investments as of June 30, 2024 and December 31, 2023:

	As of June 30, 2024
	Cash and cash equivalents		Short-term investments		Other Current Assets		Non-current Assets		Total
	(in thousands)
Cash	$	6,005,440	$	—	$	1,973	$	77	$	6,007,490
Level 1 securities:
Money market funds	356,346		—		—		56		356,402
Level 2 securities:
Time Deposits (1)	263,153		30,973		—		—		294,126
	$	6,624,939	$	30,973	$	1,973	$	133	$	6,658,018

	As of December 31, 2023
	Cash and cash equivalents		Short-term investments		Other Current Assets		Non-current Assets		Total
	(in thousands)
Cash	$	5,986,629	$	—	$	1,466	$	81	$	5,988,176
Level 1 securities:
Money market funds	925,652		—		—		55		925,707
Level 2 securities:
Time Deposits (1)	204,632		20,973		—		—		225,605
	$	7,116,913	$	20,973	$	1,466	$	136	$	7,139,488

(1) The majority of the Company's time deposits are international deposits, which mature within one year.

Other current assets include restricted cash for deposits related to self-insurance. Non-current assets include restricted cash related to letter of credit agreements. The fair value of cash equivalents and short-term investments included in the Level 2 category is based on observable inputs, such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly.

See Note 6 Debt and Note 7 Derivative Financial Instruments and Hedging Activities to the consolidated financial statements for further information regarding the fair value of the Company’s senior notes and derivative financial instruments.

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5. Balance Sheet Components

Content Assets, Net

Content assets consisted of the following:

	As of
	June 30, 2024		December 31, 2023
	(in thousands)
Licensed content, net	$	12,358,540	$	12,722,701
Produced content, net
Released, less amortization	10,033,753		9,843,150
In production	8,810,544		8,247,578
In development and pre-production	724,518		844,627
	19,568,815		18,935,355
Content assets, net	$	31,927,355	$	31,658,056

As of June 30, 2024, the amount of accrued participations and residuals was not material.

The following table represents the amortization of content assets:

	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Licensed content	$	1,884,491	$	1,779,321	$	3,719,608	$	3,502,999
Produced content	1,885,199		1,630,700		3,720,887		3,367,006
Total	$	3,769,690	$	3,410,021	$	7,440,495	$	6,870,005

Property and Equipment, Net

Property and equipment and accumulated depreciation consisted of the following:

	As of
	June 30, 2024		December 31, 2023		Estimated Useful Lives
	(in thousands)
Land	$	85,000	$	85,000
Buildings and improvements	384,312		154,165		30 years
Leasehold improvements	1,048,874		1,032,492		Over life of lease
Furniture and fixtures	144,030		144,737		3 years
Information technology	411,448		414,092		3 years
Corporate aircraft	99,175		99,175		8-10 years
Machinery and equipment	11,572		10,334		3-5 years
Capital work-in-progress	241,274		406,492
Property and equipment, gross	2,425,685		2,346,487
Less: Accumulated depreciation	(914,727)		(855,043)
Property and equipment, net	$	1,510,958	$	1,491,444

    

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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				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Cash paid for operating lease liabilities	$	130,104	$	114,760	$	255,410	$	228,167
Right-of-use assets obtained in exchange for new operating lease obligations	160,812		91,572		344,774		112,466

	As of
	June 30, 2024		December 31, 2023
	(in thousands)
Operating lease right-of-use assets, net	$	2,223,261	$	2,076,899
Current operating lease liabilities	417,009		383,312
Non-current operating lease liabilities	2,127,120		2,046,801
Total operating lease liabilities	$	2,544,129	$	2,430,113

Other Current Assets

Other current assets consisted of the following:

	As of
	June 30, 2024		December 31, 2023
	(in thousands)
Trade receivables	$	1,276,359	$	1,287,054
Prepaid expenses	445,622		408,936
Other	1,237,660		1,084,257
Total other current assets	$	2,959,641	$	2,780,247

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6. Debt

As of June 30, 2024, the Company had aggregate outstanding notes of $13,980 million, net of $58 million of issuance costs, with varying maturities (the "Notes"). Of the outstanding balance, $1,800 million, net of issuance costs, is classified as short-term debt on the Consolidated Balance Sheets. As of December 31, 2023, the Company had aggregate outstanding notes of $14,543 million, net of $65 million of issuance costs. Each of the Notes were issued at par and are senior unsecured obligations of the Company. Interest is payable semi-annually at fixed rates.

A portion of the outstanding Notes is denominated in foreign currency (comprised of €5,170 million) and is remeasured into U.S. dollars at each balance sheet date (with remeasurement gain totaling $43 million and $173 million, respectively, for the three and six months ended June 30, 2024). As of June 30, 2024, approximately $1 billion of the Company’s euro–denominated Senior Notes was designated as a hedge of the foreign exchange risk of the Company’s net investment in certain foreign subsidiaries. In the three and six months ended June 30, 2024, a pre-tax loss of $3 million on the Company’s euro-denominated Senior Notes designated as net investment hedges was recorded in AOCI. No amount of the Company’s euro-denominated Senior Notes was designated as a net investment hedge as of December 31, 2023 or in the comparative prior year periods. See Note 7 Derivative Financial Instruments and Hedging Activities to the consolidated financial statements for further information regarding the Company’s derivative and non-derivative financial instruments.

The following table provides a summary of the Company's outstanding debt and the fair values based on quoted market prices in less active markets as of June 30, 2024 and December 31, 2023:

	Principal Amount at Par						Level 2 Fair Value as of
	June 30, 2024		December 31, 2023		Issuance Date	Maturity	June 30, 2024		December 31, 2023
	(in millions)						(in millions)
5.750% Senior Notes	$	—	$	400	February 2014	March 2024	$	—	$	400
5.875% Senior Notes	800		800		February 2015	February 2025	801		807
3.000% Senior Notes (1)	503		519		April 2020	June 2025	501		516
3.625% Senior Notes	500		500		April 2020	June 2025	491		491
4.375% Senior Notes	1,000		1,000		October 2016	November 2026	982		996
3.625% Senior Notes (1)	1,394		1,434		May 2017	May 2027	1,399		1,454
4.875% Senior Notes	1,600		1,600		October 2017	April 2028	1,591		1,621
5.875% Senior Notes	1,900		1,900		April 2018	November 2028	1,959		2,009
4.625% Senior Notes (1)	1,178		1,215		October 2018	May 2029	1,233		1,300
6.375% Senior Notes	800		800		October 2018	May 2029	843		872
3.875% Senior Notes (1)	1,285		1,325		April 2019	November 2029	1,303		1,372
5.375% Senior Notes	900		900		April 2019	November 2029	909		931
3.625% Senior Notes (1)	1,178		1,215		October 2019	June 2030	1,176		1,237
4.875% Senior Notes	1,000		1,000		October 2019	June 2030	985		1,012
	$	14,038	$	14,608			$	14,173	$	15,018

(1) The following Senior Notes have a principal amount denominated in euros: 3.000% Senior Notes for €470 million, 3.625% Senior Notes for €1,300 million, 4.625% Senior Notes for €1,100 million, 3.875% Senior Notes for €1,200 million, and 3.625% Senior Notes for €1,100 million.

In the six months ended June 30, 2024, the Company repaid upon maturity the $400 million aggregate principal amount of its 5.750% Senior Notes.

Each of the Notes are repayable in whole or in part upon the occurrence of a change of control, at the option of the holders, at a purchase price in cash equal to 101% of the principal plus accrued interest. The Company may redeem the Notes prior to maturity in whole or in part at an amount equal to the principal amount thereof plus accrued and unpaid interest and an applicable premium. The Notes include, among other terms and conditions, limitations on the Company's ability to create, incur or allow certain liens; enter into sale and lease-back transactions; create, assume, incur or guarantee additional indebtedness of certain of the Company's subsidiaries; and consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's and its subsidiaries assets, to another person. As of June 30, 2024 and December 31, 2023, the Company was in compliance with all related covenants.

15

Revolving Credit Facility

On April 12, 2024, the Company entered into a five-year, $3 billion unsecured revolving credit facility that matures on April 12, 2029 (the “Revolving Credit Agreement”), to replace its previous $1 billion unsecured revolving credit facility. As of June 30, 2024, no amounts have been borrowed under the Revolving Credit Agreement.

The borrowings under the Revolving Credit Agreement bear interest, at the Company’s option, of either (i) a floating rate per annum equal to a base rate (the “Alternate Base Rate”) plus an applicable margin or (ii) a per annum rate equal to an adjusted term SOFR rate (the “Adjusted Term SOFR Rate”) plus an applicable margin. The applicable margin for Alternate Base Rate loans will range from 0.00% to 0.25%, and the applicable margin for Adjusted Term SOFR Rate loans will range from 0.75% to 1.25%, each based on the Company’s credit ratings.

The Revolving Credit Agreement contains customary affirmative covenants and negative covenants (and customary baskets and exceptions with respect thereto) for a credit facility of this size and type and requires the Company to maintain a minimum ratio of consolidated EBITDA to consolidated interest expense of 3.0 to 1.0 as of the last day of each fiscal quarter. As of June 30, 2024 and December 31, 2023, the Company was in compliance with all related covenants and ratios.

7. Derivative Financial Instruments and Hedging Activities

The Company uses derivative and non-derivative instruments to manage foreign exchange risk related to its ongoing business operations with the primary objective of reducing earnings and cash flow volatility associated with fluctuations in foreign exchange rates.

Notional Amount of Derivative Contracts

The net notional amounts of the Company’s outstanding derivative instruments were as follows:

	As of
	June 30, 2024		December 31, 2023
	(in thousands)
Derivatives designated as hedging instruments:
Foreign exchange contracts
Cash flow hedges	$	9,549,472	$	8,783,273
Derivatives not designated as hedging instruments:
Foreign exchange contracts	808,357		—
Total	$	10,357,829	$	8,783,273

Fair Value of Derivative Contracts

The fair value of the Company’s outstanding derivative instruments was as follows:

	As of June 30, 2024
	Derivative Assets				Derivative Liabilities
	Other current assets		Other non-current assets		Accrued expenses and other liabilities		Other non-current liabilities
	(in thousands)
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	197,119	$	41,085	$	26,586	$	3,176
Derivatives not designated as hedging instruments:
Foreign exchange contracts	2,625		—		2,371		—
Total	$	199,744	$	41,085	$	28,957	$	3,176

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	As of December 31, 2023
	Derivative Assets				Derivative Liabilities
	Other current assets		Other non-current assets		Accrued expenses and other liabilities		Other non-current liabilities
	(in thousands)
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	26,416	$	4,518	$	140,089	$	46,575
Derivatives not designated as hedging instruments:
Foreign exchange contracts	—		—		—		—
Total	$	26,416	$	4,518	$	140,089	$	46,575

The Company classifies derivative instruments in the Level 2 category within the fair value hierarchy. These instruments are valued using industry standard valuation models that use observable inputs such as interest rate yield curves, and forward and spot prices for currencies.

As of June 30, 2024, the pre-tax net accumulated gain on our foreign currency cash flow hedges included in AOCI on the Consolidated Balance Sheets expected to be recognized in earnings within the next 12 months is $174 million.

Master Netting Agreements

In order to mitigate counterparty credit risk, the Company enters into master netting agreements with its counterparties for its foreign currency exchange contracts which permit the parties to settle amounts on a net basis under certain conditions. The Company has elected to present its derivative assets and liabilities on a gross basis on its Consolidated Balance Sheets.

The Company also enters into collateral security arrangements with its counterparties that require the parties to post cash collateral when certain contractual thresholds are met. No cash collateral was received or posted by the Company as of June 30, 2024 and December 31, 2023.

The potential offsetting effect to the Company’s derivative assets and liabilities under its master netting agreements and collateral security agreements were as follows:

	As of June 30, 2024
							Gross Amount Not Offset in the Consolidated Balance Sheets
	Gross Amount Recognized in the Consolidated Balance Sheets		Gross Amount Offset in the Consolidated Balance Sheets		Net Amount Presented in the Consolidated Balance Sheets		Financial Instruments		Collateral Received and Posted		Net Amount
	(in thousands)
Derivative assets	$	240,829	$	—	$	240,829	$	(32,133)	$	—	$	208,696
Derivative liabilities	32,133		—		32,133		(32,133)		—		—

	As of December 31, 2023
							Gross Amount Not Offset in the Consolidated Balance Sheets
	Gross Amount Recognized in the Consolidated Balance Sheets		Gross Amount Offset in the Consolidated Balance Sheets		Net Amount Presented in the Consolidated Balance Sheets		Financial Instruments		Collateral Received and Posted		Net Amount
	(in thousands)
Derivative assets	$	30,934	$	—	$	30,934	$	(27,246)	$	—	$	3,688
Derivative liabilities	186,664		—		186,664		(27,246)		—		159,418

Effect of Derivative and Non-Derivative Instruments on Consolidated Financial Statements

The pre-tax gains (losses) on the Company’s cash flow hedges and net investment hedges recognized in AOCI were as follows:

17

	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Cash flow hedges:
Foreign exchange contracts (1)
Amount included in the assessment of effectiveness	$	160,544	$	—	$	389,688	$	—
Net investment hedges:
Foreign currency-denominated debt	(3,400)		—		(3,400)		—
Total	$	157,144	$	—	$	386,288	$	—

(1) No amounts were excluded from the assessment of effectiveness.

The gains on derivative instruments recognized in the Consolidated Statement of Operations were as follows:

	Three Months Ended
	June 30, 2024
	Revenues		Cost of Revenues		Interest and other income (expense)
	(in thousands)
Total amounts presented in the Consolidated Statements of Operations	$	9,559,310	$	5,174,143	$	79,005
Gains on derivatives in cash flow hedging relationship
Foreign exchange contracts
Amount of gains reclassified from AOCI	33,301		73		—
Gains on derivatives not designated as hedging instruments
Foreign exchange contracts	—		—		9,797

	Six Months Ended
	June 30, 2024
	Revenues		Cost of Revenues		Interest and other income (expense)
	(in thousands)
Total amounts presented in the Consolidated Statements of Operations	$	18,929,750	$	10,151,216	$	234,364
Gains on derivatives in cash flow hedging relationship
Foreign exchange contracts
Amount of gains reclassified from AOCI	22,060		267		—
Gains on derivatives not designated as hedging instruments
Foreign exchange contracts	—		—		14,063

No gains or losses on derivative instruments were recognized in the Consolidated Statements of Operations in the three and six months ended June 30, 2023.

8. Commitments and Contingencies

Content

As of June 30, 2024, the Company had $23.3 billion of obligations comprised of $4.4 billion included in "Current content liabilities" and $2.0 billion of "Non-current content liabilities" on the Consolidated Balance Sheets and $16.9 billion of obligations that are not reflected on the Consolidated Balance Sheets as they did not yet meet the criteria for recognition.

18

As of December 31, 2023, the Company had $21.7 billion of obligations comprised of $4.5 billion included in "Current content liabilities" and $2.6 billion of "Non-current content liabilities" on the Consolidated Balance Sheets and $14.6 billion of obligations that are not reflected on the Consolidated Balance Sheets as they did not yet meet the criteria for recognition.

The expected timing of payments for these content obligations is as follows:

	As of
	June 30, 2024		December 31, 2023
	(in thousands)
Less than one year	$	11,456,834	$	10,328,923
Due after one year and through three years	8,592,237		8,784,302
Due after three years and through five years	2,528,545		2,016,358
Due after five years	731,986		583,766
Total content obligations	$	23,309,602	$	21,713,349

Content obligations include amounts related to the acquisition, licensing and production of content. Obligations that are in non-U.S. dollar currencies are translated to the U.S. dollar at period end rates. An obligation for the production of content includes non-cancelable commitments under creative talent and employment agreements as well as other production related commitments. An obligation for the acquisition and licensing of content is incurred at the time the Company enters into an agreement to obtain future titles. Once a title becomes available, a content liability is recorded on the Consolidated Balance Sheets. Certain agreements include the obligation to license rights for unknown future titles, the ultimate quantity and/or fees for which are not yet determinable as of the reporting date. Traditional film output deals, or certain TV series license agreements where the number of seasons to be aired is unknown, are examples of such license agreements. The Company does not include any estimated obligation for these future titles beyond the known minimum amount. However, the unknown obligations are expected to be significant.

Legal Proceedings

From time to time, in the normal course of its operations, the Company is subject to litigation matters and claims, including claims relating to employee relations, business practices and patent infringement. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict and the Company's view of these matters may change in the future as the litigation and events related thereto unfold. The Company expenses legal fees as incurred. The Company records a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. An unfavorable outcome to any legal matter, if material, could have an adverse effect on the Company's operations or its financial position, liquidity or results of operations.

The Company is involved in litigation matters not listed herein but does not consider the matters to be material either individually or in the aggregate at this time. The Company's view of the matters not listed may change in the future as the litigation and events related thereto unfold.

Non-Income Taxes

The Company is routinely under audit by various tax authorities with regard to non-income tax matters. The subject matter of non-income tax audits primarily arises from disputes on the tax treatment and tax rate applied to our revenue in certain jurisdictions. We accrue non-income taxes that may result from examinations by, or any negotiated agreements with, these tax authorities when a loss is probable and reasonably estimable.

Similar to other U.S. companies doing business in Brazil, the Company is involved in a number of matters with Brazilian tax authorities regarding non-income tax assessments. Although the Company believes it has meritorious defenses to these matters, there is inherent complexity and uncertainty with respect to these matters, and the final outcome may be materially different from our expectations. The current potential exposure with respect to the various issues with Brazilian tax authorities regarding non-income tax assessments is estimated to be approximately $300 million, which is expected to increase over time.

Guarantees— Indemnification Obligations

In the ordinary course of business, the Company has entered into contractual arrangements under which it has agreed to provide indemnification of varying scope and terms to business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements and out of intellectual property infringement claims made by third parties. In these circumstances, payment may be conditional on the other party making a claim pursuant to the procedures specified in the particular contract.

The Company's obligations under these agreements may be limited in terms of time or amount, and in some instances, the Company may have recourse against third parties for certain payments. In addition, the Company has entered into indemnification agreements with its

19

directors and certain of its officers that will require it, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The terms of such obligations vary.

It is not possible to make a reasonable estimate of the maximum potential amount of future payments under these or similar agreements due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved in each particular agreement. No amount has been accrued in the accompanying consolidated financial statements with respect to these indemnification obligations.

9. Stockholders’ Equity

Equity Incentive Plans

The Netflix, Inc. 2020 Stock Plan is a stockholder-approved plan that provides for the grant of incentive stock options to employees and for the grant of non-statutory stock options, stock appreciation rights, restricted stock and restricted stock units to employees, directors and consultants.

Stock Option Activity

Stock options are generally vested in full upon grant date and exercisable for the full ten-year contractual term regardless of employment status. Stock options granted to certain named executive officers vest on the one-year anniversary of the grant date, subject to the employee’s continuous employment or service with the Company through the vesting date.

The following table summarizes the activities related to the Company’s stock options:

	Options Outstanding
	Number of Shares	Weighted- Average Exercise Price (per share)
Balances as of December 31, 2023	19,695,109	$	268.86
Granted	337,121	555.69
Exercised	(2,543,267)	153.25
Expired	(3,171)	53.41
Balances as of June 30, 2024	17,485,792	$	291.25
Vested and expected to vest as of June 30, 2024	17,485,792	$	291.25
Exercisable as of June 30, 2024	17,352,136	$	290.14

Restricted Stock Unit Activity

The Company grants time-based restricted stock unit (“RSU”) awards and performance-based restricted stock unit (“PSU”) awards to certain executive officers. RSU awards vest quarterly over a three-year period subject to the executive’s continued employment or service with the Company through the vesting date. PSU awards have performance periods ranging from one to three years and vest depending on the Company’s achievement of predetermined market-based performance targets.

The following table summarizes the activities related to the Company’s unvested RSUs and PSUs:

	Unvested Restricted Stock Units
	Number of Shares	Weighted- Average Grant-Date Fair Value (per share)
Balances as of December 31, 2023	—	$	—
Granted	159,978	686.36
Vested	(13,330)	562.00
Forfeited	—	—
Balances as of June 30, 2024	146,648	$	697.66

Stock-based Compensation

Total stock-based compensation expense was $69 million and $145 million for the three and six months ended June 30, 2024, respectively, and $78 million and $177 million for the three and six months ended June 30, 2023, respectively.

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Stock Repurchases

In March 2021, the Company’s Board of Directors authorized the repurchase of up to $5 billion of its common stock, with no expiration date, and in September 2023, the Board of Directors increased the share repurchase authorization by an additional $10 billion, also with no expiration date. Stock repurchases may be effected through open market repurchases in compliance with Rule 10b-18 under the Exchange Act, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, privately-negotiated transactions, accelerated stock repurchase plans, block purchases, or other similar purchase techniques and in such amounts as management deems appropriate. The Company is not obligated to repurchase any specific number of shares, and the timing and actual number of shares repurchased will depend on a variety of factors, including the Company’s stock price, general economic, business and market conditions, and alternative investment opportunities. The Company may discontinue any repurchases of its common stock at any time without prior notice. During the three and six months ended June 30, 2024, the Company repurchased 2,578,104 and 6,145,069 shares, respectively, for an aggregate amount of $1.6 billion and $3.6 billion, respectively. As of June 30, 2024, $4.8 billion remains available for repurchases. Shares repurchased by the Company are accounted for when the transaction is settled. As of June 30, 2024, there were no unsettled share repurchases. Direct costs incurred to acquire the shares are included in the total cost of the shares.

Accumulated Other Comprehensive Income (Loss)

The following tables summarize the changes in accumulated balances of other comprehensive income (loss) for the three and six months ended June 30, 2024:

	Foreign Currency Translation Adjustments		Net Investment Hedge Gains (Losses)		Change in Unrealized Gains (Losses) on Cash Flow Hedges		Tax (Expense) Benefit on Cash Flow Hedges		Tax (Expense) Benefit on Net Investment Hedges		Total
	(in thousands)
Balances as of March 31, 2024	$	(176,974)	$	—	$	84,461	$	(19,366)	$	—	$	(111,879)
Other comprehensive income (loss) before reclassifications	(72,626)		(3,400)		160,544		(36,811)		780		48,487
Amounts reclassified from accumulated other comprehensive income (loss)	—		—		(33,374)		7,652		—		(25,722)
Net change in accumulated other comprehensive income (loss)	(72,626)		(3,400)		127,170		(29,159)		780		22,765
Balances as of June 30, 2024	$	(249,600)	$	(3,400)	$	211,631	$	(48,525)	$	780	$	(89,114)

	Foreign Currency Translation Adjustments		Net Investment Hedge Gains (Losses)		Change in Unrealized Gains (Losses) on Cash Flow Hedges		Tax (Expense) Benefit on Cash Flow Hedges		Tax (Expense) Benefit on Net Investment Hedges		Total
	(in thousands)
Balances as of December 31, 2023	$	(103,922)	$	—	$	(155,730)	$	35,707	$	—	$	(223,945)
Other comprehensive income (loss) before reclassifications	(145,678)		(3,400)		389,688		(89,351)		780		152,039
Amounts reclassified from accumulated other comprehensive income (loss)	—		—		(22,327)		5,119		—		(17,208)
Net change in accumulated other comprehensive income (loss)	(145,678)		(3,400)		367,361		(84,232)		780		134,831
Balances as of June 30, 2024	$	(249,600)	$	(3,400)	$	211,631	$	(48,525)	$	780	$	(89,114)

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The following tables summarize the changes in accumulated balances of other comprehensive income (loss) for the three and six months ended June 30, 2023:

	Foreign Currency Translation Adjustments		Net Investment Hedge Gains (Losses)		Change in Unrealized Gains (Losses) on Cash Flow Hedges		Tax (Expense) Benefit on Cash Flow Hedges		Tax (Expense) Benefit on Net Investment Hedges		Total
	(in thousands)
Balances as of March 31, 2023	$	(191,695)	$	—	$	—	$	—	$	—	$	(191,695)
Other comprehensive income (loss) before reclassifications	52,429		—		—		—		—		52,429
Net change in accumulated other comprehensive income (loss)	52,429		—		—		—		—		52,429
Balances as of June 30, 2023	$	(139,266)	$	—	$	—	$	—	$	—	$	(139,266)

Foreign Currency Translation
Adjustments Net Investment Hedge Gains (Losses) Change in Unrealized Gains (Losses) on Cash Flow Hedges Tax (Expense) Benefit on Cash Flow H