3.	Balance Sheet Components

Content Library

Content library consisted of the following:


	As of December 31,
	2011									2010
	Streaming			DVD			Total			Streaming			DVD			Total
	(in thousands)
Total content library, gross	$	2,552,284		$	599,155		$	3,151,439		$	441,637		$	627,392		$	1,069,029
Accumulated amortization		(632,270	)		(552,526	)		(1,184,796	)		(143,227	)		(563,823	)		(707,050	)

Total content library, net		1,920,014			46,629			1,966,643			298,410			63,569			361,979
Current content library, net		919,709			—			919,709			181,006			—			181,006

Non-current content library, net	$	1,000,305		$	46,629		$	1,046,934		$	117,404		$	63,569		$	180,973

Content Liabilities

Content liabilities consisted of the following:


	As of December 31,
	2011						2010
	Streaming		DVD and other		Total		Streaming		DVD and other		Total
	(in thousands)
Content accounts payable	$	905,792	$	18,914	$	924,706	$	136,841	$	31,854	$	168,695
Non-current content liabilities		739,628		—		739,628		48,179		—		48,179

Total content liabilities	$	1,645,420	$	18,914	$	1,664,334	$	185,020	$	31,854	$	216,874

The Company typically enters into multi-year licenses with studios and other distributors that may result in an increase in content library and a corresponding increase in content accounts payable and non-current content liabilities. The payment terms for these license fees may extend over the term of the license agreement, which could range from six months to five years. As of December 31, 2011, content accounts payable and non-current content liabilities increased $1.45 billion, over December 31, 2010, as compared to an increase in total content library, net, of $1.60 billion.

Property and Equipment, Net

Property and equipment and accumulated depreciation consisted of the following:


		As of December 31,
		2011			2010
		(in thousands)
Computer equipment	3 years	$	67,090		$	60,289
Operations and other equipment	5 years		100,306			72,368
Software, including internal-use software	3years		35,356			26,961
Furniture and fixtures	3years		17,310			11,438
Building	30 years		40,681			40,681
Leasehold improvements	Over life of lease		44,473			36,530
Capital work-in-progress			822			16,882

Property and equipment, gross			306,038			265,149
Less: Accumulated depreciation			(169,685	)		(136,579	)

Property and equipment, net		$	136,353		$	128,570

Accrued Expenses

Accrued expenses consisted of the following:


	As of December 31,
	2011		2010
	(in thousands)
Accrued state sales and use tax	$	14,557	$	14,983
Accrued payroll and employee benefits		17,763		8,520
Accrued interest on debt		2,125		2,125
Accrued content related costs		10,774		6,950
Accrued legal settlement		9,000		—
Current portion of lease financing obligations		2,319		2,083
Other		7,155		3,911

Accrued expenses	$	63,693	$	38,572