As of December 31, | |||||||
2018 | 2017 | ||||||
(in thousands) | |||||||
Licensed content, net | $ | 14,081,463 | $ | 11,771,778 | |||
Produced content, net | |||||||
Released, less amortization | 2,403,896 | 1,427,256 | |||||
In production | 3,305,126 | 1,311,137 | |||||
In development and pre-production | 311,842 | 158,517 | |||||
6,020,864 | 2,896,910 | ||||||
DVD, net | 9,813 | 13,301 | |||||
Total | $ | 20,112,140 | $ | 14,681,989 | |||
Current content assets, net | $ | 5,151,186 | $ | 4,310,934 | |||
Non-current content assets, net | $ | 14,960,954 | $ | 10,371,055 |
Shares Available for Grant | Options Outstanding | Weighted- Average Remaining Contractual Term (in Years) | Aggregate Intrinsic Value (in Thousands) | ||||||||||||
Number of Shares | Weighted- Average Exercise Price (per Share) | ||||||||||||||
Balances as of December 31, 2015 | 16,845,316 | 20,995,756 | $ | 32.39 | |||||||||||
Granted | (3,555,363 | ) | 3,555,363 | 102.03 | |||||||||||
Exercised | — | (2,113,772 | ) | 17.48 | |||||||||||
Balances as of December 31, 2016 | 13,289,953 | 22,437,347 | $ | 44.83 | |||||||||||
Granted | (2,550,038 | ) | 2,550,038 | 159.56 | |||||||||||
Exercised | — | (3,338,474 | ) | 26.79 | |||||||||||
Expired | — | (1,561 | ) | $ | 3.25 | ||||||||||
Balances as of December 31, 2017 | 10,739,915 | 21,647,350 | $ | 61.13 | |||||||||||
Granted | (2,039,974 | ) | 2,039,974 | 311.66 | |||||||||||
Exercised | — | (3,205,911 | ) | 38.66 | |||||||||||
Expired | — | (2,135 | ) | 4.60 | |||||||||||
Balances as of December 31, 2018 | 8,699,941 | 20,479,278 | $ | 89.61 | 5.71 | $ | 3,748,339 | ||||||||
Vested and exercisable at December 31, 2018 | 20,479,278 | $ | 89.61 | 5.71 | $ | 3,748,339 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Dividend yield | — | % | — | % | — | % | ||||||
Expected volatility | 40% - 42% | 34% - 37% | 40% - 50% | |||||||||
Risk-free interest rate | 2.61% - 3.09% | 2.24% - 2.45% | 1.57% - 2.04% | |||||||||
Suboptimal exercise factor | 2.80 - 3.01 | 2.48 - 2.63 | 2.48 | |||||||||
Valuation data: | ||||||||||||
Weighted-average fair value (per share) | $ | 157.19 | $ | 71.45 | $ | 48.85 | ||||||
Total stock-based compensation expense (in thousands) | 320,657 | 182,209 | 173,675 | |||||||||
Total income tax impact on provision (in thousands) | 67,575 | 61,842 | 65,173 |
Three Months Ended (unaudited) | Twelve Months Ended | ||||||||||||||||||
March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | December 31, 2016 | |||||||||||||||
(in thousands) | |||||||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 1,957,736 | $ | 2,105,204 | $ | 2,290,188 | $ | 2,477,541 | $ | 8,830,669 | |||||||||
Cost of revenues | 1,369,540 | 1,473,098 | 1,532,844 | 1,654,419 | 6,029,901 | ||||||||||||||
Marketing | 208,010 | 216,029 | 282,043 | 284,996 | 991,078 | ||||||||||||||
Technology and development | 203,508 | 207,300 | 216,099 | 225,191 | 852,098 | ||||||||||||||
General and administrative | 127,225 | 138,407 | 153,166 | 159,001 | 577,799 | ||||||||||||||
Operating income | $ | 49,453 | $ | 70,370 | $ | 106,036 | $ | 153,934 | $ | 379,793 | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 49,041 | 52,299 | 60,924 | 65,297 | 227,561 | ||||||||||||||
Marketing | 23,455 | 24,561 | 28,974 | 29,451 | 106,441 | ||||||||||||||
Technology and development | (16,898 | ) | (17,096 | ) | (18,593 | ) | (19,279 | ) | (71,866 | ) | |||||||||
General and administrative | (55,598 | ) | (59,764 | ) | (71,305 | ) | (75,469 | ) | (262,136 | ) | |||||||||
Operating income | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
As Revised | |||||||||||||||||||
Revenues | $ | 1,957,736 | $ | 2,105,204 | $ | 2,290,188 | $ | 2,477,541 | $ | 8,830,669 | |||||||||
Cost of revenues | 1,418,581 | 1,525,397 | 1,593,768 | 1,719,716 | 6,257,462 | ||||||||||||||
Marketing | 231,465 | 240,590 | 311,017 | 314,447 | 1,097,519 | ||||||||||||||
Technology and development | 186,610 | 190,204 | 197,506 | 205,912 | 780,232 | ||||||||||||||
General and administrative | 71,627 | 78,643 | 81,861 | 83,532 | 315,663 | ||||||||||||||
Operating income | $ | 49,453 | $ | 70,370 | $ | 106,036 | $ | 153,934 | $ | 379,793 |
Three Months Ended (unaudited) | Twelve Months Ended | ||||||||||||||||||
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | December 31, 2017 | |||||||||||||||
(in thousands) | |||||||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 2,636,635 | $ | 2,785,464 | $ | 2,984,859 | $ | 3,285,755 | $ | 11,692,713 | |||||||||
Cost of revenues | 1,657,024 | 1,902,308 | 1,992,980 | 2,107,354 | 7,659,666 | ||||||||||||||
Marketing | 271,270 | 274,323 | 312,490 | 419,939 | 1,278,022 | ||||||||||||||
Technology and development | 257,108 | 267,083 | 255,236 | 273,351 | 1,052,778 | ||||||||||||||
General and administrative | 194,291 | 213,943 | 215,526 | 239,808 | 863,568 | ||||||||||||||
Operating income | $ | 256,942 | $ | 127,807 | $ | 208,627 | $ | 245,303 | $ | 838,679 | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 83,707 | 89,388 | 93,259 | 106,980 | 373,334 | ||||||||||||||
Marketing | 34,878 | 36,837 | 39,956 | 46,588 | 158,259 | ||||||||||||||
Technology and development | (23,237 | ) | (24,599 | ) | (25,013 | ) | (26,219 | ) | (99,068 | ) | |||||||||
General and administrative | (95,348 | ) | (101,626 | ) | (108,202 | ) | (127,349 | ) | (432,525 | ) | |||||||||
Operating income | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
As Revised | |||||||||||||||||||
Revenues | $ | 2,636,635 | $ | 2,785,464 | $ | 2,984,859 | $ | 3,285,755 | $ | 11,692,713 | |||||||||
Cost of revenues | 1,740,731 | 1,991,696 | 2,086,239 | 2,214,334 | 8,033,000 | ||||||||||||||
Marketing | 306,148 | 311,160 | 352,446 | 466,527 | 1,436,281 | ||||||||||||||
Technology and development | 233,871 | 242,484 | 230,223 | 247,132 | 953,710 | ||||||||||||||
General and administrative | 98,943 | 112,317 | 107,324 | 112,459 | 431,043 | ||||||||||||||
Operating income | $ | 256,942 | $ | 127,807 | $ | 208,627 | $ | 245,303 | $ | 838,679 |
Three Months Ended (unaudited) | |||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | |||||||||
(in thousands) | |||||||||||
As Previously Reported | |||||||||||
Revenues | $ | 3,700,856 | $ | 3,907,270 | $ | 3,999,374 | |||||
Cost of revenues | 2,196,075 | 2,289,867 | 2,412,346 | ||||||||
Marketing | 479,222 | 526,780 | 435,269 | ||||||||
Technology and development | 300,730 | 317,213 | 327,026 | ||||||||
General and administrative | 278,251 | 311,197 | 344,065 | ||||||||
Operating income | $ | 446,578 | $ | 462,213 | $ | 480,668 | |||||
Reclassifications | |||||||||||
Revenues | $ | — | $ | — | $ | — | |||||
Cost of revenues | 104,504 | 112,564 | 118,782 | ||||||||
Marketing | 57,555 | 65,227 | 75,061 | ||||||||
Technology and development | (18,420 | ) | (18,118 | ) | (18,406 | ) | |||||
General and administrative | (143,639 | ) | (159,673 | ) | (175,437 | ) | |||||
Operating income | $ | — | $ | — | $ | — | |||||
As Revised | |||||||||||
Revenues | $ | 3,700,856 | $ | 3,907,270 | $ | 3,999,374 | |||||
Cost of revenues | 2,300,579 | 2,402,431 | 2,531,128 | ||||||||
Marketing | 536,777 | 592,007 | 510,330 | ||||||||
Technology and development | 282,310 | 299,095 | 308,620 | ||||||||
General and administrative | 134,612 | 151,524 | 168,628 | ||||||||
Operating income | $ | 446,578 | $ | 462,213 | $ | 480,668 |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | December 31, 2016 | |||||||||||||||
(unaudited) (in thousands) | |||||||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 1,161,241 | $ | 1,208,271 | $ | 1,304,333 | $ | 1,403,462 | $ | 5,077,307 | |||||||||
Cost of revenues | 666,546 | 707,106 | 720,658 | 761,479 | 2,855,789 | ||||||||||||||
Marketing | 81,942 | 86,806 | 108,495 | 105,589 | 382,832 | ||||||||||||||
Contribution profit | $ | 412,753 | $ | 414,359 | $ | 475,180 | $ | 536,394 | $ | 1,838,686 | |||||||||
Contribution margin | 35.5 | % | 34.3 | % | 36.4 | % | 38.2 | % | 36.2 | % | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 21,210 | 22,293 | 25,562 | 27,119 | 96,184 | ||||||||||||||
Marketing | 6,632 | 6,945 | 8,192 | 8,327 | 30,096 | ||||||||||||||
Contribution profit | $ | (27,842 | ) | $ | (29,238 | ) | $ | (33,754 | ) | $ | (35,446 | ) | $ | (126,280 | ) | ||||
As Revised | |||||||||||||||||||
Revenues | $ | 1,161,241 | $ | 1,208,271 | $ | 1,304,333 | $ | 1,403,462 | $ | 5,077,307 | |||||||||
Cost of revenues | 687,756 | 729,399 | 746,220 | 788,598 | 2,951,973 | ||||||||||||||
Marketing | 88,574 | 93,751 | 116,687 | 113,916 | 412,928 | ||||||||||||||
Contribution profit | $ | 384,911 | $ | 385,121 | $ | 441,426 | $ | 500,948 | $ | 1,712,406 | |||||||||
Contribution margin | 33.1 | % | 31.9 | % | 33.8 | % | 35.7 | % | 33.7 | % |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | December 31, 2017 | |||||||||||||||
(unaudited) (in thousands) | |||||||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 1,470,042 | $ | 1,505,499 | $ | 1,547,210 | $ | 1,630,274 | $ | 6,153,025 | |||||||||
Cost of revenues | 749,488 | 831,962 | 864,408 | 873,372 | 3,319,230 | ||||||||||||||
Marketing | 115,038 | 113,608 | 128,901 | 195,784 | 553,331 | ||||||||||||||
Contribution profit | $ | 605,516 | $ | 559,929 | $ | 553,901 | $ | 561,118 | $ | 2,280,464 | |||||||||
Contribution margin | 41.2 | % | 37.2 | % | 35.8 | % | 34.4 | % | 37.1 | % | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 34,466 | 36,568 | 37,867 | 42,728 | 151,629 | ||||||||||||||
Marketing | 11,215 | 11,295 | 12,632 | 15,273 | 50,415 | ||||||||||||||
Contribution profit | $ | (45,681 | ) | $ | (47,863 | ) | $ | (50,499 | ) | $ | (58,001 | ) | $ | (202,044 | ) | ||||
As Revised | |||||||||||||||||||
Revenues | $ | 1,470,042 | $ | 1,505,499 | $ | 1,547,210 | $ | 1,630,274 | $ | 6,153,025 | |||||||||
Cost of revenues | 783,954 | 868,530 | 902,275 | 916,100 | 3,470,859 | ||||||||||||||
Marketing | 126,253 | 124,903 | 141,533 | 211,057 | 603,746 | ||||||||||||||
Contribution profit | $ | 559,835 | $ | 512,066 | $ | 503,402 | $ | 503,117 | $ | 2,078,420 | |||||||||
Contribution margin | 38.1 | % | 34.0 | % | 32.5 | % | 30.9 | % | 33.8 | % |
Three Months Ended | |||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | |||||||||
(unaudited) (in thousands) | |||||||||||
As Previously Reported | |||||||||||
Revenues | $ | 1,820,019 | $ | 1,893,222 | $ | 1,937,314 | |||||
Cost of revenues | 894,873 | 925,703 | 991,823 | ||||||||
Marketing | 228,022 | 227,961 | 183,521 | ||||||||
Contribution profit | $ | 697,124 | $ | 739,558 | $ | 761,970 | |||||
Contribution margin | 38.3 | % | 39.1 | % | 39.3 | % | |||||
Reclassifications | |||||||||||
Revenues | $ | — | $ | — | $ | — | |||||
Cost of revenues | 41,607 | 44,292 | 46,650 | ||||||||
Marketing | 22,697 | 23,337 | 27,074 | ||||||||
Contribution profit | $ | (64,304 | ) | $ | (67,629 | ) | $ | (73,724 | ) | ||
As Revised | |||||||||||
Revenues | $ | 1,820,019 | $ | 1,893,222 | $ | 1,937,314 | |||||
Cost of revenues | 936,480 | 969,995 | 1,038,473 | ||||||||
Marketing | 250,719 | 251,298 | 210,595 | ||||||||
Contribution profit | $ | 632,820 | $ | 671,929 | $ | 688,246 | |||||
Contribution margin | 34.8 | % | 35.5 | % | 35.5 | % |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | December 31, 2016 | |||||||||||||||
(unaudited) (in thousands) | |||||||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 651,748 | $ | 758,201 | $ | 853,480 | $ | 947,666 | $ | 3,211,095 | |||||||||
Cost of revenues | 629,899 | 698,162 | 748,515 | 834,794 | 2,911,370 | ||||||||||||||
Marketing | 126,068 | 129,223 | 173,548 | 179,407 | 608,246 | ||||||||||||||
Contribution profit (loss) | $ | (104,219 | ) | $ | (69,184 | ) | $ | (68,583 | ) | $ | (66,535 | ) | $ | (308,521 | ) | ||||
Contribution margin | (16.0 | )% | (9.1 | )% | (8.0 | )% | (7.0 | )% | (9.6 | )% | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 27,831 | 30,006 | 35,362 | 38,178 | 131,377 | ||||||||||||||
Marketing | 16,823 | 17,616 | 20,782 | 21,124 | 76,345 | ||||||||||||||
Contribution profit (loss) | $ | (44,654 | ) | $ | (47,622 | ) | $ | (56,144 | ) | $ | (59,302 | ) | $ | (207,722 | ) | ||||
As Revised | |||||||||||||||||||
Revenues | $ | 651,748 | $ | 758,201 | $ | 853,480 | $ | 947,666 | $ | 3,211,095 | |||||||||
Cost of revenues | 657,730 | 728,168 | 783,877 | 872,972 | 3,042,747 | ||||||||||||||
Marketing | 142,891 | 146,839 | 194,330 | 200,531 | 684,591 | ||||||||||||||
Contribution profit (loss) | $ | (148,873 | ) | $ | (116,806 | ) | $ | (124,727 | ) | $ | (125,837 | ) | $ | (516,243 | ) | ||||
Contribution margin | (22.8 | )% | (15.4 | )% | (14.6 | )% | (13.3 | )% | (16.1 | )% |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | December 31, 2017 | |||||||||||||||
(unaudited) (in thousands) | |||||||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 1,046,199 | $ | 1,165,228 | $ | 1,327,435 | $ | 1,550,329 | $ | 5,089,191 | |||||||||
Cost of revenues | 847,317 | 1,017,612 | 1,081,485 | 1,191,497 | 4,137,911 | ||||||||||||||
Marketing | 156,232 | 160,715 | 183,589 | 224,155 | 724,691 | ||||||||||||||
Contribution profit (loss) | $ | 42,650 | $ | (13,099 | ) | $ | 62,361 | $ | 134,677 | $ | 226,589 | ||||||||
Contribution margin | 4.1 | % | (1.1 | )% | 4.7 | % | 8.7 | % | 4.5 | % | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 49,241 | 52,820 | 55,392 | 64,252 | 221,705 | ||||||||||||||
Marketing | 23,663 | 25,542 | 27,324 | 31,315 | 107,844 | ||||||||||||||
Contribution profit (loss) | $ | (72,904 | ) | $ | (78,362 | ) | $ | (82,716 | ) | $ | (95,567 | ) | $ | (329,549 | ) | ||||
As Revised | |||||||||||||||||||
Revenues | $ | 1,046,199 | $ | 1,165,228 | $ | 1,327,435 | $ | 1,550,329 | $ | 5,089,191 | |||||||||
Cost of revenues | 896,558 | 1,070,432 | 1,136,877 | 1,255,749 | 4,359,616 | ||||||||||||||
Marketing | 179,895 | 186,257 | 210,913 | 255,470 | 832,535 | ||||||||||||||
Contribution profit (loss) | $ | (30,254 | ) | $ | (91,461 | ) | $ | (20,355 | ) | $ | 39,110 | $ | (102,960 | ) | |||||
Contribution margin | (2.9 | )% | (7.8 | )% | (1.5 | )% | 2.5 | % | (2.0 | )% |
Three Months Ended | |||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | |||||||||
(unaudited) (in thousands) | |||||||||||
As Previously Reported | |||||||||||
Revenues | $ | 1,782,086 | $ | 1,921,144 | $ | 1,973,283 | |||||
Cost of revenues | 1,258,809 | 1,324,240 | 1,383,422 | ||||||||
Marketing | 251,200 | 298,819 | 251,748 | ||||||||
Contribution profit | $ | 272,077 | $ | 298,085 | $ | 338,113 | |||||
Contribution margin | 15.3 | % | 15.5 | % | 17.1 | % | |||||
Reclassifications | |||||||||||
Revenues | $ | — | $ | — | $ | — | |||||
Cost of revenues | 62,897 | 68,272 | 72,132 | ||||||||
Marketing | 34,858 | 41,890 | 47,987 | ||||||||
Contribution profit | $ | (97,755 | ) | $ | (110,162 | ) | $ | (120,119 | ) | ||
As Revised | |||||||||||
Revenues | $ | 1,782,086 | $ | 1,921,144 | $ | 1,973,283 | |||||
Cost of revenues | 1,321,706 | 1,392,512 | 1,455,554 | ||||||||
Marketing | 286,058 | 340,709 | 299,735 | ||||||||
Contribution profit | $ | 174,322 | $ | 187,923 | $ | 217,994 | |||||
Contribution margin | 9.8 | % | 9.8 | % | 11.0 | % |
As of December 31, 2018 | |||||||||||
Cash and cash equivalents | Non-current Assets | Total | |||||||||
(in thousands) | |||||||||||
Cash | $ | 2,572,685 | $ | 16,260 | $ | 2,588,945 | |||||
Level 1 securities: | |||||||||||
Money market funds | 1,221,798 | 1,298 | 1,223,096 | ||||||||
$ | 3,794,483 | $ | 17,558 | $ | 3,812,041 |
As of December 31, 2017 | |||||||||||
Cash and cash equivalents | Non-current Assets | Total | |||||||||
(in thousands) | |||||||||||
Cash | $ | 2,072,296 | $ | 4,367 | $ | 2,076,663 | |||||
Level 1 securities: | |||||||||||
Money market funds | 449,734 | 1,276 | 451,010 | ||||||||
Level 2 securities: | |||||||||||
Time Deposits | 300,765 | — | 300,765 | ||||||||
$ | 2,822,795 | $ | 5,643 | $ | 2,828,438 |
As of December 31, | |||||||
2018 | 2017 | ||||||
(in thousands) | |||||||
Less than one year | $ | 8,611,398 | $ | 7,446,947 | |||
Due after one year and through 3 years | 8,841,561 | 8,210,159 | |||||
Due after 3 years and through 5 years | 1,684,582 | 1,894,001 | |||||
Due after 5 years | 148,334 | 143,535 | |||||
Total streaming content obligations | $ | 19,285,875 | $ | 17,694,642 |
Year Ending December 31, | Future Minimum Payments | ||
(in thousands) | |||
2019 | $ | 172,470 | |
2020 | 139,366 | ||
2021 | 145,175 | ||
2022 | 156,527 | ||
2023 | 151,200 | ||
Thereafter | 943,630 | ||
Total minimum payments | $ | 1,708,368 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(in thousands) | |||||||||||
United States | $ | 845,402 | $ | 144,100 | $ | 188,078 | |||||
Foreign | 381,056 | 341,221 | 72,429 | ||||||||
Income before income taxes | $ | 1,226,458 | $ | 485,321 | $ | 260,507 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(in thousands) | |||||||||||
Current tax provision: | |||||||||||
Federal | $ | (22,176 | ) | $ | 54,245 | $ | 54,315 | ||||
State | (10,234 | ) | (7,601 | ) | 5,790 | ||||||
Foreign | 133,146 | 88,436 | 60,571 | ||||||||
Total current | 100,736 | 135,080 | 120,676 | ||||||||
Deferred tax provision: | |||||||||||
Federal | (37,396 | ) | (153,963 | ) | (24,383 | ) | |||||
State | (52,391 | ) | (52,695 | ) | (14,080 | ) | |||||
Foreign | 4,267 | (2,030 | ) | (8,384 | ) | ||||||
Total deferred | (85,520 | ) | (208,688 | ) | (46,847 | ) | |||||
Provision for (benefit from) income taxes | $ | 15,216 | $ | (73,608 | ) | $ | 73,829 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(in thousands) | |||||||||||
Expected tax expense at U.S. Federal statutory rates | $ | 257,556 | $ | 169,860 | $ | 91,179 | |||||
State income taxes, net of Federal income tax effect | 33,611 | 6,404 | 7,261 | ||||||||
Foreign earnings at other than U.S. rates | 63,519 | (87,514 | ) | 14,639 | |||||||
Federal and California R&D tax credits | (140,749 | ) | (79,868 | ) | (41,144 | ) | |||||
Excess tax benefits on stock-based compensation | (191,323 | ) | (157,888 | ) | — | ||||||
Impact of the Tax Cuts and Jobs Act of 2017 | |||||||||||
Rate Change / Transition Tax | (71,516 | ) | 79,077 | — | |||||||
U.S. Minimum Tax on Foreign Entities | 43,099 | — | — | ||||||||
Nondeductible Officers Compensation | 14,377 | 28 | 28 | ||||||||
Other | 6,642 | (3,707 | ) | 1,866 | |||||||
Provision for (benefit from) income taxes | $ | 15,216 | $ | (73,608 | ) | $ | 73,829 | ||||
Effective Tax Rate | 1 | % | (15 | )% | 28 | % |
As of December 31, | |||||||
2018 | 2017 | ||||||
(in thousands) | |||||||
Deferred tax assets: | |||||||
Stock-based compensation | $ | 190,451 | $ | 149,367 | |||
Depreciation and amortization | (151,678 | ) | (70,382 | ) | |||
Federal and California tax R&D credits | 369,023 | 260,686 | |||||
Foreign tax credits | 218,026 | 102,242 | |||||
Accruals and reserves | 36,396 | 34,170 | |||||
Other | 27,203 | 51,614 | |||||
Gross deferred tax assets | 689,421 | 527,697 | |||||
Valuation allowance | (124,996 | ) | (49,431 | ) | |||
Net deferred tax assets | $ | 564,425 | $ | 478,266 |
Balances as of December 31, 2016 | $ | 19,739 | |
Decreases related to tax positions taken during prior periods | (3,226 | ) | |
Increases related to tax positions taken during the current period | 26,389 | ||
Balances as of December 31, 2017 | 42,902 | ||
Increases related to tax positions taken during prior periods | 4,486 | ||
Decreases related to tax positions taken during prior periods | (17,922 | ) | |
Increases related to tax positions taken during the current period | 18,068 | ||
Balances as of December 31, 2018 | $ | 47,534 |
As of December 31, | |||||||
2018 | 2017 | ||||||
(in thousands) | |||||||
United States | $ | 381,947 | $ | 289,875 | |||
International | 36,334 | 29,529 |
Level 2 Fair Value as of | ||||||||||||||||
Principal Amount at Par | Issuance Date | Maturity | Interest Due Dates | December 31, 2018 | December 31, 2017 | |||||||||||
(in millions) | (in millions) | |||||||||||||||
5.375% Senior Notes | 500 | February 2013 | February 2021 | February and August | $ | 509 | $ | 530 | ||||||||
5.50% Senior Notes | 700 | February 2015 | February 2022 | April and October | 706 | 739 | ||||||||||
5.750% Senior Notes | 400 | February 2014 | March 2024 | March and September | 407 | 427 | ||||||||||
5.875% Senior Notes | 800 | February 2015 | February 2025 | April and October | 812 | 856 | ||||||||||
4.375% Senior Notes | 1,000 | October 2016 | November 2026 | May and November | 915 | 983 | ||||||||||
3.625% Senior Notes (1) | 1,489 | May 2017 | May 2027 | May and November | 1,446 | 1,575 | ||||||||||
4.875% Senior Notes | 1,600 | October 2017 | April 2028 | April and October | 1,464 | 1,571 | ||||||||||
5.875% Senior Notes | 1,900 | April 2018 | November 2028 | May and November | 1,851 | — | ||||||||||
4.625% Senior Notes (2) | 1,260 | October 2018 | May 2029 | May and November | 1,241 | — | ||||||||||
6.375% Senior Notes | 800 | October 2018 | May 2029 | May and November | 797 | — | ||||||||||
10,449 |
As of | |||||||
December 31, 2018 | December 31, 2017 | ||||||
(in thousands) | |||||||
Less than one year | $ | 538,384 | $ | 311,339 | |||
Due after one year and through three years | 1,550,581 | 627,444 | |||||
Due after three years and through five years | 1,646,101 | 1,761,465 | |||||
Due after five years | 11,138,129 | 6,348,580 | |||||
Total debt obligations | $ | 14,873,195 | $ | 9,048,828 |
As of December 31, | |||||||
2018 | 2017 | ||||||
(in thousands) | |||||||
Less than one year | $ | 8,611,398 | $ | 7,446,947 | |||
Due after one year and through 3 years | 8,841,561 | 8,210,159 | |||||
Due after 3 years and through 5 years | 1,684,582 | 1,894,001 | |||||
Due after 5 years | 148,334 | 143,535 | |||||
Total streaming content obligations | $ | 19,285,875 | $ | 17,694,642 |
Year ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(in thousands, except per share data) | |||||||||||
Basic earnings per share: | |||||||||||
Net income | $ | 1,211,242 | $ | 558,929 | $ | 186,678 | |||||
Shares used in computation: | |||||||||||
Weighted-average common shares outstanding | 435,374 | 431,885 | 428,822 | ||||||||
Basic earnings per share | $ | 2.78 | $ | 1.29 | $ | 0.44 | |||||
Diluted earnings per share: | |||||||||||
Net income | $ | 1,211,242 | $ | 558,929 | $ | 186,678 | |||||
Shares used in computation: | |||||||||||
Weighted-average common shares outstanding | 435,374 | 431,885 | 428,822 | ||||||||
Employee stock options | 15,870 | 14,929 | 9,830 | ||||||||
Weighted-average number of shares | 451,244 | 446,814 | 438,652 | ||||||||
Diluted earnings per share | $ | 2.68 | $ | 1.25 | $ | 0.43 |
Year ended December 31, | ||||||||
2018 | 2017 | 2016 | ||||||
(in thousands) | ||||||||
Employee stock options | 330 | 189 | 1,545 |
As of December 31, | Estimated Useful Lives (in Years) | |||||||||
2018 | 2017 | |||||||||
(in thousands) | ||||||||||
Leasehold improvements | $ | 282,028 | $ | 229,848 | Over life of lease | |||||
Information technology | 224,296 | 223,850 | 3 years | |||||||
Furniture and fixtures | 63,667 | 49,217 | 3-15 years | |||||||
Buildings | 73,468 | 40,681 | 30 years | |||||||
Corporate aircraft | 62,560 | 30,039 | 8 years | |||||||
DVD operations equipment | 53,416 | 59,316 | 5 years | |||||||
Machinery and equipment | 1,692 | — | 3 years | |||||||
Land | 6,125 | — | ||||||||
Capital work-in-progress | 19,548 | 8,267 | ||||||||
Property and equipment, gross | 786,800 | 641,218 | ||||||||
Less: Accumulated depreciation | (368,519 | ) | (321,814 | ) | ||||||
Property and equipment, net | $ | 418,281 | $ | 319,404 |
December 31 | September 30 | June 30 | March 31 | ||||||||||||
(in thousands, except for per share data) | |||||||||||||||
2018 | |||||||||||||||
Total revenues | $ | 4,186,841 | $ | 3,999,374 | $ | 3,907,270 | $ | 3,700,856 | |||||||
Gross profit | 1,453,441 | 1,468,246 | 1,504,839 | 1,400,277 | |||||||||||
Net income | 133,934 | 402,835 | 384,349 | 290,124 | |||||||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.31 | $ | 0.92 | $ | 0.88 | $ | 0.67 | |||||||
Diluted | 0.30 | 0.89 | 0.85 | 0.64 | |||||||||||
2017 | |||||||||||||||
Total revenues | $ | 3,285,755 | $ | 2,984,859 | $ | 2,785,464 | $ | 2,636,635 | |||||||
Gross profit | 1,071,421 | 898,620 | 793,768 | 895,904 | |||||||||||
Net income | 185,517 | 129,590 | 65,600 | 178,222 | |||||||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.43 | $ | 0.30 | $ | 0.15 | $ | 0.41 | |||||||
Diluted | 0.41 | 0.29 | 0.15 | 0.40 |
Foreign currency | Change in unrealized gains on available-for-sale securities | Total | |||||||||
(in thousands) | |||||||||||
Balances as of December 31, 2016 | $ | (47,966 | ) | $ | (599 | ) | $ | (48,565 | ) | ||
Other comprehensive income before reclassifications | 27,409 | 728 | 28,137 | ||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | — | (129 | ) | (129 | ) | ||||||
Net decrease in other comprehensive loss | 27,409 | 599 | 28,008 | ||||||||
Balances as of December 31, 2017 | $ | (20,557 | ) | $ | — | $ | (20,557 | ) | |||
Other comprehensive income before reclassifications | 975 | — | 975 | ||||||||
Net decrease in other comprehensive loss | 975 | — | 975 | ||||||||
Balances as of December 31, 2018 | $ | (19,582 | ) | $ | — | $ | (19,582 | ) |
Year ended December 31, | ||||||||
2018 | 2017 | 2016 | ||||||
(in thousands) | ||||||||
Employee stock options | 330 | 189 | 1,545 |
As of December 31, 2018 | |||||||||||
Cash and cash equivalents | Non-current Assets | Total | |||||||||
(in thousands) | |||||||||||
Cash | $ | 2,572,685 | $ | 16,260 | $ | 2,588,945 | |||||
Level 1 securities: | |||||||||||
Money market funds | 1,221,798 | 1,298 | 1,223,096 | ||||||||
$ | 3,794,483 | $ | 17,558 | $ | 3,812,041 |
As of December 31, 2017 | |||||||||||
Cash and cash equivalents | Non-current Assets | Total | |||||||||
(in thousands) | |||||||||||
Cash | $ | 2,072,296 | $ | 4,367 | $ | 2,076,663 | |||||
Level 1 securities: | |||||||||||
Money market funds | 449,734 | 1,276 | 451,010 | ||||||||
Level 2 securities: | |||||||||||
Time Deposits | 300,765 | — | 300,765 | ||||||||
$ | 2,822,795 | $ | 5,643 | $ | 2,828,438 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(in thousands) | |||||||||||
Current tax provision: | |||||||||||
Federal | $ | (22,176 | ) | $ | 54,245 | $ | 54,315 | ||||
State | (10,234 | ) | (7,601 | ) | 5,790 | ||||||
Foreign | 133,146 | 88,436 | 60,571 | ||||||||
Total current | 100,736 | 135,080 | 120,676 | ||||||||
Deferred tax provision: | |||||||||||
Federal | (37,396 | ) | (153,963 | ) | (24,383 | ) | |||||
State | (52,391 | ) | (52,695 | ) | (14,080 | ) | |||||
Foreign | 4,267 | (2,030 | ) | (8,384 | ) | ||||||
Total deferred | (85,520 | ) | (208,688 | ) | (46,847 | ) | |||||
Provision for (benefit from) income taxes | $ | 15,216 | $ | (73,608 | ) | $ | 73,829 |
Level 2 Fair Value as of | ||||||||||||||||
Principal Amount at Par | Issuance Date | Maturity | Interest Due Dates | December 31, 2018 | December 31, 2017 | |||||||||||
(in millions) | (in millions) | |||||||||||||||
5.375% Senior Notes | 500 | February 2013 | February 2021 | February and August | $ | 509 | $ | 530 | ||||||||
5.50% Senior Notes | 700 | February 2015 | February 2022 | April and October | 706 | 739 | ||||||||||
5.750% Senior Notes | 400 | February 2014 | March 2024 | March and September | 407 | 427 | ||||||||||
5.875% Senior Notes | 800 | February 2015 | February 2025 | April and October | 812 | 856 | ||||||||||
4.375% Senior Notes | 1,000 | October 2016 | November 2026 | May and November | 915 | 983 | ||||||||||
3.625% Senior Notes (1) | 1,489 | May 2017 | May 2027 | May and November | 1,446 | 1,575 | ||||||||||
4.875% Senior Notes | 1,600 | October 2017 | April 2028 | April and October | 1,464 | 1,571 | ||||||||||
5.875% Senior Notes | 1,900 | April 2018 | November 2028 | May and November | 1,851 | — | ||||||||||
4.625% Senior Notes (2) | 1,260 | October 2018 | May 2029 | May and November | 1,241 | — | ||||||||||
6.375% Senior Notes | 800 | October 2018 | May 2029 | May and November | 797 | — | ||||||||||
10,449 |
As of December 31, | |||||||
2018 | 2017 | ||||||
(in thousands) | |||||||
Deferred tax assets: | |||||||
Stock-based compensation | $ | 190,451 | $ | 149,367 | |||
Depreciation and amortization | (151,678 | ) | (70,382 | ) | |||
Federal and California tax R&D credits | 369,023 | 260,686 | |||||
Foreign tax credits | 218,026 | 102,242 | |||||
Accruals and reserves | 36,396 | 34,170 | |||||
Other | 27,203 | 51,614 | |||||
Gross deferred tax assets | 689,421 | 527,697 | |||||
Valuation allowance | (124,996 | ) | (49,431 | ) | |||
Net deferred tax assets | $ | 564,425 | $ | 478,266 |
Year ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(in thousands, except per share data) | |||||||||||
Basic earnings per share: | |||||||||||
Net income | $ | 1,211,242 | $ | 558,929 | $ | 186,678 | |||||
Shares used in computation: | |||||||||||
Weighted-average common shares outstanding | 435,374 | 431,885 | 428,822 | ||||||||
Basic earnings per share | $ | 2.78 | $ | 1.29 | $ | 0.44 | |||||
Diluted earnings per share: | |||||||||||
Net income | $ | 1,211,242 | $ | 558,929 | $ | 186,678 | |||||
Shares used in computation: | |||||||||||
Weighted-average common shares outstanding | 435,374 | 431,885 | 428,822 | ||||||||
Employee stock options | 15,870 | 14,929 | 9,830 | ||||||||
Weighted-average number of shares | 451,244 | 446,814 | 438,652 | ||||||||
Diluted earnings per share | $ | 2.68 | $ | 1.25 | $ | 0.43 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(in thousands) | |||||||||||
Expected tax expense at U.S. Federal statutory rates | $ | 257,556 | $ | 169,860 | $ | 91,179 | |||||
State income taxes, net of Federal income tax effect | 33,611 | 6,404 | 7,261 | ||||||||
Foreign earnings at other than U.S. rates | 63,519 | (87,514 | ) | 14,639 | |||||||
Federal and California R&D tax credits | (140,749 | ) | (79,868 | ) | (41,144 | ) | |||||
Excess tax benefits on stock-based compensation | (191,323 | ) | (157,888 | ) | — | ||||||
Impact of the Tax Cuts and Jobs Act of 2017 | |||||||||||
Rate Change / Transition Tax | (71,516 | ) | 79,077 | — | |||||||
U.S. Minimum Tax on Foreign Entities | 43,099 | — | — | ||||||||
Nondeductible Officers Compensation | 14,377 | 28 | 28 | ||||||||
Other | 6,642 | (3,707 | ) | 1,866 | |||||||
Provision for (benefit from) income taxes | $ | 15,216 | $ | (73,608 | ) | $ | 73,829 | ||||
Effective Tax Rate | 1 | % | (15 | )% | 28 | % |
Three Months Ended (unaudited) | Twelve Months Ended | ||||||||||||||||||
March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | December 31, 2016 | |||||||||||||||
(in thousands) | |||||||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 1,957,736 | $ | 2,105,204 | $ | 2,290,188 | $ | 2,477,541 | $ | 8,830,669 | |||||||||
Cost of revenues | 1,369,540 | 1,473,098 | 1,532,844 | 1,654,419 | 6,029,901 | ||||||||||||||
Marketing | 208,010 | 216,029 | 282,043 | 284,996 | 991,078 | ||||||||||||||
Technology and development | 203,508 | 207,300 | 216,099 | 225,191 | 852,098 | ||||||||||||||
General and administrative | 127,225 | 138,407 | 153,166 | 159,001 | 577,799 | ||||||||||||||
Operating income | $ | 49,453 | $ | 70,370 | $ | 106,036 | $ | 153,934 | $ | 379,793 | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 49,041 | 52,299 | 60,924 | 65,297 | 227,561 | ||||||||||||||
Marketing | 23,455 | 24,561 | 28,974 | 29,451 | 106,441 | ||||||||||||||
Technology and development | (16,898 | ) | (17,096 | ) | (18,593 | ) | (19,279 | ) | (71,866 | ) | |||||||||
General and administrative | (55,598 | ) | (59,764 | ) | (71,305 | ) | (75,469 | ) | (262,136 | ) | |||||||||
Operating income | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
As Revised | |||||||||||||||||||
Revenues | $ | 1,957,736 | $ | 2,105,204 | $ | 2,290,188 | $ | 2,477,541 | $ | 8,830,669 | |||||||||
Cost of revenues | 1,418,581 | 1,525,397 | 1,593,768 | 1,719,716 | 6,257,462 | ||||||||||||||
Marketing | 231,465 | 240,590 | 311,017 | 314,447 | 1,097,519 | ||||||||||||||
Technology and development | 186,610 | 190,204 | 197,506 | 205,912 | 780,232 | ||||||||||||||
General and administrative | 71,627 | 78,643 | 81,861 | 83,532 | 315,663 | ||||||||||||||
Operating income | $ | 49,453 | $ | 70,370 | $ | 106,036 | $ | 153,934 | $ | 379,793 |
Three Months Ended (unaudited) | Twelve Months Ended | ||||||||||||||||||
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | December 31, 2017 | |||||||||||||||
(in thousands) | |||||||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 2,636,635 | $ | 2,785,464 | $ | 2,984,859 | $ | 3,285,755 | $ | 11,692,713 | |||||||||
Cost of revenues | 1,657,024 | 1,902,308 | 1,992,980 | 2,107,354 | 7,659,666 | ||||||||||||||
Marketing | 271,270 | 274,323 | 312,490 | 419,939 | 1,278,022 | ||||||||||||||
Technology and development | 257,108 | 267,083 | 255,236 | 273,351 | 1,052,778 | ||||||||||||||
General and administrative | 194,291 | 213,943 | 215,526 | 239,808 | 863,568 | ||||||||||||||
Operating income | $ | 256,942 | $ | 127,807 | $ | 208,627 | $ | 245,303 | $ | 838,679 | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 83,707 | 89,388 | 93,259 | 106,980 | 373,334 | ||||||||||||||
Marketing | 34,878 | 36,837 | 39,956 | 46,588 | 158,259 | ||||||||||||||
Technology and development | (23,237 | ) | (24,599 | ) | (25,013 | ) | (26,219 | ) | (99,068 | ) | |||||||||
General and administrative | (95,348 | ) | (101,626 | ) | (108,202 | ) | (127,349 | ) | (432,525 | ) | |||||||||
Operating income | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
As Revised | |||||||||||||||||||
Revenues | $ | 2,636,635 | $ | 2,785,464 | $ | 2,984,859 | $ | 3,285,755 | $ | 11,692,713 | |||||||||
Cost of revenues | 1,740,731 | 1,991,696 | 2,086,239 | 2,214,334 | 8,033,000 | ||||||||||||||
Marketing | 306,148 | 311,160 | 352,446 | 466,527 | 1,436,281 | ||||||||||||||
Technology and development | 233,871 | 242,484 | 230,223 | 247,132 | 953,710 | ||||||||||||||
General and administrative | 98,943 | 112,317 | 107,324 | 112,459 | 431,043 | ||||||||||||||
Operating income | $ | 256,942 | $ | 127,807 | $ | 208,627 | $ | 245,303 | $ | 838,679 |
Three Months Ended (unaudited) | |||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | |||||||||
(in thousands) | |||||||||||
As Previously Reported | |||||||||||
Revenues | $ | 3,700,856 | $ | 3,907,270 | $ | 3,999,374 | |||||
Cost of revenues | 2,196,075 | 2,289,867 | 2,412,346 | ||||||||
Marketing | 479,222 | 526,780 | 435,269 | ||||||||
Technology and development | 300,730 | 317,213 | 327,026 | ||||||||
General and administrative | 278,251 | 311,197 | 344,065 | ||||||||
Operating income | $ | 446,578 | $ | 462,213 | $ | 480,668 | |||||
Reclassifications | |||||||||||
Revenues | $ | — | $ | — | $ | — | |||||
Cost of revenues | 104,504 | 112,564 | 118,782 | ||||||||
Marketing | 57,555 | 65,227 | 75,061 | ||||||||
Technology and development | (18,420 | ) | (18,118 | ) | (18,406 | ) | |||||
General and administrative | (143,639 | ) | (159,673 | ) | (175,437 | ) | |||||
Operating income | $ | — | $ | — | $ | — | |||||
As Revised | |||||||||||
Revenues | $ | 3,700,856 | $ | 3,907,270 | $ | 3,999,374 | |||||
Cost of revenues | 2,300,579 | 2,402,431 | 2,531,128 | ||||||||
Marketing | 536,777 | 592,007 | 510,330 | ||||||||
Technology and development | 282,310 | 299,095 | 308,620 | ||||||||
General and administrative | 134,612 | 151,524 | 168,628 | ||||||||
Operating income | $ | 446,578 | $ | 462,213 | $ | 480,668 |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | December 31, 2016 | |||||||||||||||
(unaudited) (in thousands) | |||||||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 1,161,241 | $ | 1,208,271 | $ | 1,304,333 | $ | 1,403,462 | $ | 5,077,307 | |||||||||
Cost of revenues | 666,546 | 707,106 | 720,658 | 761,479 | 2,855,789 | ||||||||||||||
Marketing | 81,942 | 86,806 | 108,495 | 105,589 | 382,832 | ||||||||||||||
Contribution profit | $ | 412,753 | $ | 414,359 | $ | 475,180 | $ | 536,394 | $ | 1,838,686 | |||||||||
Contribution margin | 35.5 | % | 34.3 | % | 36.4 | % | 38.2 | % | 36.2 | % | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 21,210 | 22,293 | 25,562 | 27,119 | 96,184 | ||||||||||||||
Marketing | 6,632 | 6,945 | 8,192 | 8,327 | 30,096 | ||||||||||||||
Contribution profit | $ | (27,842 | ) | $ | (29,238 | ) | $ | (33,754 | ) | $ | (35,446 | ) | $ | (126,280 | ) | ||||
As Revised | |||||||||||||||||||
Revenues | $ | 1,161,241 | $ | 1,208,271 | $ | 1,304,333 | $ | 1,403,462 | $ | 5,077,307 | |||||||||
Cost of revenues | 687,756 | 729,399 | 746,220 | 788,598 | 2,951,973 | ||||||||||||||
Marketing | 88,574 | 93,751 | 116,687 | 113,916 | 412,928 | ||||||||||||||
Contribution profit | $ | 384,911 | $ | 385,121 | $ | 441,426 | $ | 500,948 | $ | 1,712,406 | |||||||||
Contribution margin | 33.1 | % | 31.9 | % | 33.8 | % | 35.7 | % | 33.7 | % |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | December 31, 2017 | |||||||||||||||
(unaudited) (in thousands) | |||||||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 1,470,042 | $ | 1,505,499 | $ | 1,547,210 | $ | 1,630,274 | $ | 6,153,025 | |||||||||
Cost of revenues | 749,488 | 831,962 | 864,408 | 873,372 | 3,319,230 | ||||||||||||||
Marketing | 115,038 | 113,608 | 128,901 | 195,784 | 553,331 | ||||||||||||||
Contribution profit | $ | 605,516 | $ | 559,929 | $ | 553,901 | $ | 561,118 | $ | 2,280,464 | |||||||||
Contribution margin | 41.2 | % | 37.2 | % | 35.8 | % | 34.4 | % | 37.1 | % | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 34,466 | 36,568 | 37,867 | 42,728 | 151,629 | ||||||||||||||
Marketing | 11,215 | 11,295 | 12,632 | 15,273 | 50,415 | ||||||||||||||
Contribution profit | $ | (45,681 | ) | $ | (47,863 | ) | $ | (50,499 | ) | $ | (58,001 | ) | $ | (202,044 | ) | ||||
As Revised | |||||||||||||||||||
Revenues | $ | 1,470,042 | $ | 1,505,499 | $ | 1,547,210 | $ | 1,630,274 | $ | 6,153,025 | |||||||||
Cost of revenues | 783,954 | 868,530 | 902,275 | 916,100 | 3,470,859 | ||||||||||||||
Marketing | 126,253 | 124,903 | 141,533 | 211,057 | 603,746 | ||||||||||||||
Contribution profit | $ | 559,835 | $ | 512,066 | $ | 503,402 | $ | 503,117 | $ | 2,078,420 | |||||||||
Contribution margin | 38.1 | % | 34.0 | % | 32.5 | % | 30.9 | % | 33.8 | % |
Three Months Ended | |||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | |||||||||
(unaudited) (in thousands) | |||||||||||
As Previously Reported | |||||||||||
Revenues | $ | 1,820,019 | $ | 1,893,222 | $ | 1,937,314 | |||||
Cost of revenues | 894,873 | 925,703 | 991,823 | ||||||||
Marketing | 228,022 | 227,961 | 183,521 | ||||||||
Contribution profit | $ | 697,124 | $ | 739,558 | $ | 761,970 | |||||
Contribution margin | 38.3 | % | 39.1 | % | 39.3 | % | |||||
Reclassifications | |||||||||||
Revenues | $ | — | $ | — | $ | — | |||||
Cost of revenues | 41,607 | 44,292 | 46,650 | ||||||||
Marketing | 22,697 | 23,337 | 27,074 | ||||||||
Contribution profit | $ | (64,304 | ) | $ | (67,629 | ) | $ | (73,724 | ) | ||
As Revised | |||||||||||
Revenues | $ | 1,820,019 | $ | 1,893,222 | $ | 1,937,314 | |||||
Cost of revenues | 936,480 | 969,995 | 1,038,473 | ||||||||
Marketing | 250,719 | 251,298 | 210,595 | ||||||||
Contribution profit | $ | 632,820 | $ | 671,929 | $ | 688,246 | |||||
Contribution margin | 34.8 | % | 35.5 | % | 35.5 | % |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | December 31, 2016 | |||||||||||||||
(unaudited) (in thousands) | |||||||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 651,748 | $ | 758,201 | $ | 853,480 | $ | 947,666 | $ | 3,211,095 | |||||||||
Cost of revenues | 629,899 | 698,162 | 748,515 | 834,794 | 2,911,370 | ||||||||||||||
Marketing | 126,068 | 129,223 | 173,548 | 179,407 | 608,246 | ||||||||||||||
Contribution profit (loss) | $ | (104,219 | ) | $ | (69,184 | ) | $ | (68,583 | ) | $ | (66,535 | ) | $ | (308,521 | ) | ||||
Contribution margin | (16.0 | )% | (9.1 | )% | (8.0 | )% | (7.0 | )% | (9.6 | )% | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 27,831 | 30,006 | 35,362 | 38,178 | 131,377 | ||||||||||||||
Marketing | 16,823 | 17,616 | 20,782 | 21,124 | 76,345 | ||||||||||||||
Contribution profit (loss) | $ | (44,654 | ) | $ | (47,622 | ) | $ | (56,144 | ) | $ | (59,302 | ) | $ | (207,722 | ) | ||||
As Revised | |||||||||||||||||||
Revenues | $ | 651,748 | $ | 758,201 | $ | 853,480 | $ | 947,666 | $ | 3,211,095 | |||||||||
Cost of revenues | 657,730 | 728,168 | 783,877 | 872,972 | 3,042,747 | ||||||||||||||
Marketing | 142,891 | 146,839 | 194,330 | 200,531 | 684,591 | ||||||||||||||
Contribution profit (loss) | $ | (148,873 | ) | $ | (116,806 | ) | $ | (124,727 | ) | $ | (125,837 | ) | $ | (516,243 | ) | ||||
Contribution margin | (22.8 | )% | (15.4 | )% | (14.6 | )% | (13.3 | )% | (16.1 | )% |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | December 31, 2017 | |||||||||||||||
(unaudited) (in thousands) | |||||||||||||||||||
As Previously Reported | |||||||||||||||||||
Revenues | $ | 1,046,199 | $ | 1,165,228 | $ | 1,327,435 | $ | 1,550,329 | $ | 5,089,191 | |||||||||
Cost of revenues | 847,317 | 1,017,612 | 1,081,485 | 1,191,497 | 4,137,911 | ||||||||||||||
Marketing | 156,232 | 160,715 | 183,589 | 224,155 | 724,691 | ||||||||||||||
Contribution profit (loss) | $ | 42,650 | $ | (13,099 | ) | $ | 62,361 | $ | 134,677 | $ | 226,589 | ||||||||
Contribution margin | 4.1 | % | (1.1 | )% | 4.7 | % | 8.7 | % | 4.5 | % | |||||||||
Reclassifications | |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Cost of revenues | 49,241 | 52,820 | 55,392 | 64,252 | 221,705 | ||||||||||||||
Marketing | 23,663 | 25,542 | 27,324 | 31,315 | 107,844 | ||||||||||||||
Contribution profit (loss) | $ | (72,904 | ) | $ | (78,362 | ) | $ | (82,716 | ) | $ | (95,567 | ) | $ | (329,549 | ) | ||||
As Revised | |||||||||||||||||||
Revenues | $ | 1,046,199 | $ | 1,165,228 | $ | 1,327,435 | $ | 1,550,329 | $ | 5,089,191 | |||||||||
Cost of revenues | 896,558 | 1,070,432 | 1,136,877 | 1,255,749 | 4,359,616 | ||||||||||||||
Marketing | 179,895 | 186,257 | 210,913 | 255,470 | 832,535 | ||||||||||||||
Contribution profit (loss) | $ | (30,254 | ) | $ | (91,461 | ) | $ | (20,355 | ) | $ | 39,110 | $ | (102,960 | ) | |||||
Contribution margin | (2.9 | )% | (7.8 | )% | (1.5 | )% | 2.5 | % | (2.0 | )% |
Three Months Ended | |||||||||||
March 31, 2018 | June 30, 2018 | September 30, 2018 | |||||||||
(unaudited) (in thousands) | |||||||||||
As Previously Reported | |||||||||||
Revenues | $ | 1,782,086 | $ | 1,921,144 | $ | 1,973,283 | |||||
Cost of revenues | 1,258,809 | 1,324,240 | 1,383,422 | ||||||||
Marketing | 251,200 | 298,819 | 251,748 | ||||||||
Contribution profit | $ | 272,077 | $ | 298,085 | $ | 338,113 | |||||
Contribution margin | 15.3 | % | 15.5 | % | 17.1 | % | |||||
Reclassifications | |||||||||||
Revenues | $ | — | $ | — | $ | — | |||||
Cost of revenues | 62,897 | 68,272 | 72,132 | ||||||||
Marketing | 34,858 | 41,890 | 47,987 | ||||||||
Contribution profit | $ | (97,755 | ) | $ | (110,162 | ) | $ | (120,119 | ) | ||
As Revised | |||||||||||
Revenues | $ | 1,782,086 | $ | 1,921,144 | $ | 1,973,283 | |||||
Cost of revenues | 1,321,706 | 1,392,512 | 1,455,554 | ||||||||
Marketing | 286,058 | 340,709 | 299,735 | ||||||||
Contribution profit | $ | 174,322 | $ | 187,923 | $ | 217,994 | |||||
Contribution margin | 9.8 | % | 9.8 | % | 11.0 | % |
Year Ending December 31, | Future Minimum Payments | ||
(in thousands) | |||
2019 | $ | 172,470 | |
2020 | 139,366 | ||
2021 | 145,175 | ||
2022 | 156,527 | ||
2023 | 151,200 | ||
Thereafter | 943,630 | ||
Total minimum payments | $ | 1,708,368 |
Year Ending December 31, | Future Minimum Payments | ||
(in thousands) | |||
2019 | $ | 172,470 | |
2020 | 139,366 | ||
2021 | 145,175 | ||
2022 | 156,527 | ||
2023 | 151,200 | ||
Thereafter | 943,630 | ||
Total minimum payments | $ | 1,708,368 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(in thousands) | |||||||||||
United States | $ | 845,402 | $ | 144,100 | $ | 188,078 | |||||
Foreign | 381,056 | 341,221 | 72,429 | ||||||||
Income before income taxes | $ | 1,226,458 | $ | 485,321 | $ | 260,507 |
As of | |||||||
December 31, 2018 | December 31, 2017 | ||||||
(in thousands) | |||||||
Less than one year | $ | 538,384 | $ | 311,339 | |||
Due after one year and through three years | 1,550,581 | 627,444 | |||||
Due after three years and through five years | 1,646,101 | 1,761,465 | |||||
Due after five years | 11,138,129 | 6,348,580 | |||||
Total debt obligations | $ | 14,873,195 | $ | 9,048,828 |
December 31 | September 30 | June 30 | March 31 | ||||||||||||
(in thousands, except for per share data) | |||||||||||||||
2018 | |||||||||||||||
Total revenues | $ | 4,186,841 | $ | 3,999,374 | $ | 3,907,270 | $ | 3,700,856 | |||||||
Gross profit | 1,453,441 | 1,468,246 | 1,504,839 | 1,400,277 | |||||||||||
Net income | 133,934 | 402,835 | 384,349 | 290,124 | |||||||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.31 | $ | 0.92 | $ | 0.88 | $ | 0.67 | |||||||
Diluted | 0.30 | 0.89 | 0.85 | 0.64 | |||||||||||
2017 | |||||||||||||||
Total revenues | $ | 3,285,755 | $ | 2,984,859 | $ | 2,785,464 | $ | 2,636,635 | |||||||
Gross profit | 1,071,421 | 898,620 | 793,768 | 895,904 | |||||||||||
Net income | 185,517 | 129,590 | 65,600 | 178,222 | |||||||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.43 | $ | 0.30 | $ | 0.15 | $ | 0.41 | |||||||
Diluted | 0.41 | 0.29 | 0.15 | 0.40 |
As of/Year ended December 31, 2018 | |||||||||||||||
Domestic Streaming | International Streaming | Domestic DVD | Consolidated | ||||||||||||
(in thousands) | |||||||||||||||
Total paid memberships at end of period (1) | 58,486 | 80,773 | 2,706 | ||||||||||||
Total paid net membership additions (1) | 5,676 | 22,939 | (624 | ) | |||||||||||
Total free trials at end of period | 2,065 | 7,131 | 25 | ||||||||||||
Revenues | $ | 7,646,647 | $ | 7,782,105 | $ | 365,589 | $ | 15,794,341 | |||||||
Cost of revenues | 4,038,394 | 5,776,047 | 153,097 | 9,967,538 | |||||||||||
Marketing | 1,025,351 | 1,344,118 | — | 2,369,469 | |||||||||||
Contribution profit | $ | 2,582,902 | $ | 661,940 | $ | 212,492 | 3,457,334 | ||||||||
Other operating expenses | 1,852,108 | ||||||||||||||
Operating income | 1,605,226 | ||||||||||||||
Other income (expense) | (378,768 | ) | |||||||||||||
Provision for income taxes | 15,216 | ||||||||||||||
Net income | $ | 1,211,242 |
Year Ended December 31, 2018 | |||||||||||||||
Domestic Streaming | International Streaming | Domestic DVD | Consolidated | ||||||||||||
(in thousands) | |||||||||||||||
Amortization of content assets | $ | 3,115,170 | $ | 4,416,918 | $ | 41,212 | $ | 7,573,300 |
As of/Year ended December 31, 2017 | |||||||||||||||
Domestic Streaming | International Streaming | Domestic DVD | Consolidated | ||||||||||||
(in thousands) | |||||||||||||||
Total paid memberships at end of period (1) | 52,810 | 57,834 | 3,330 | ||||||||||||
Total paid net membership additions (1) | 4,905 | 16,649 | (699 | ) | |||||||||||
Total free trials at end of period | 1,940 | 4,998 | 53 | ||||||||||||
Revenues | $ | 6,153,025 | $ | 5,089,191 | $ | 450,497 | $ | 11,692,713 | |||||||
Cost of revenues | 3,470,859 | 4,359,616 | 202,525 | 8,033,000 | |||||||||||
Marketing | 603,746 | 832,535 | — | 1,436,281 | |||||||||||
Contribution profit (loss) | $ | 2,078,420 | $ | (102,960 | ) | $ | 247,972 | 2,223,432 | |||||||
Other operating expenses | 1,384,753 | ||||||||||||||
Operating income | 838,679 | ||||||||||||||
Other income (expense) | (353,358 | ) | |||||||||||||
Benefit from income taxes | (73,608 | ) | |||||||||||||
Net income | $ | 558,929 |
Year Ended December 31, 2017 | |||||||||||||||
Domestic Streaming | International Streaming | Domestic DVD | Consolidated | ||||||||||||
(in thousands) | |||||||||||||||
Amortization of content assets | $ | 2,756,947 | $ | 3,440,870 | $ | 60,657 | $ | 6,258,474 |
As of/Year ended December 31, 2016 | |||||||||||||||
Domestic Streaming | International Streaming | Domestic DVD | Consolidated | ||||||||||||
(in thousands) | |||||||||||||||
Total paid memberships at end of period (1) | 47,905 | 41,185 | 4,029 | ||||||||||||
Total paid net membership additions (1) | 4,504 | 13,747 | (758 | ) | |||||||||||
Total free trials at end of period | 1,526 | 3,180 | 85 | ||||||||||||
Revenues | $ | 5,077,307 | $ | 3,211,095 | $ | 542,267 | $ | 8,830,669 | |||||||
Cost of revenues | 2,951,973 | 3,042,747 | 262,742 | 6,257,462 | |||||||||||
Marketing | 412,928 | 684,591 | — | 1,097,519 | |||||||||||
Contribution profit (loss) | $ | 1,712,406 | $ | (516,243 | ) | $ | 279,525 | 1,475,688 | |||||||
Other operating expenses | 1,095,895 | ||||||||||||||
Operating income | 379,793 | ||||||||||||||
Other income (expense) | (119,286 | ) | |||||||||||||
Provision for income taxes | 73,829 | ||||||||||||||
Net income | $ | 186,678 |
Year Ended December 31, 2016 | |||||||||||||||
Domestic Streaming | International Streaming | Domestic DVD | Consolidated | ||||||||||||
(in thousands) | |||||||||||||||
Amortization of content assets | $ | 2,337,950 | $ | 2,450,548 | $ | 78,952 | $ | 4,867,450 |
(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 other promotional offering by the Company to certain new and rejoining members. 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 cancellation of the service, as a result of a failed method of payment, becomes 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. |
Shares Available for Grant | Options Outstanding | Weighted- Average Remaining Contractual Term (in Years) | Aggregate Intrinsic Value (in Thousands) | ||||||||||||
Number of Shares | Weighted- Average Exercise Price (per Share) | ||||||||||||||
Balances as of December 31, 2015 | 16,845,316 | 20,995,756 | $ | 32.39 | |||||||||||
Granted | (3,555,363 | ) | 3,555,363 | 102.03 | |||||||||||
Exercised | — | (2,113,772 | ) | 17.48 | |||||||||||
Balances as of December 31, 2016 | 13,289,953 | 22,437,347 | $ | 44.83 | |||||||||||
Granted | (2,550,038 | ) | 2,550,038 | 159.56 | |||||||||||
Exercised | — | (3,338,474 | ) | 26.79 | |||||||||||
Expired | — | (1,561 | ) | $ | 3.25 | ||||||||||
Balances as of December 31, 2017 | 10,739,915 | 21,647,350 | $ | 61.13 | |||||||||||
Granted | (2,039,974 | ) | 2,039,974 | 311.66 | |||||||||||
Exercised | — | (3,205,911 | ) | 38.66 | |||||||||||
Expired | — | (2,135 | ) | 4.60 | |||||||||||
Balances as of December 31, 2018 | 8,699,941 | 20,479,278 | $ | 89.61 | 5.71 | $ | 3,748,339 | ||||||||
Vested and exercisable at December 31, 2018 | 20,479,278 | $ | 89.61 | 5.71 | $ | 3,748,339 |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Dividend yield | — | % | — | % | — | % | ||||||
Expected volatility | 40% - 42% | 34% - 37% | 40% - 50% | |||||||||
Risk-free interest rate | 2.61% - 3.09% | 2.24% - 2.45% | 1.57% - 2.04% | |||||||||
Suboptimal exercise factor | 2.80 - 3.01 | 2.48 - 2.63 | 2.48 | |||||||||
Valuation data: | ||||||||||||
Weighted-average fair value (per share) | $ | 157.19 | $ | 71.45 | $ | 48.85 | ||||||
Total stock-based compensation expense (in thousands) | 320,657 | 182,209 | 173,675 | |||||||||
Total income tax impact on provision (in thousands) | 67,575 | 61,842 | 65,173 |
As of December 31, | |||||||
2018 | 2017 | ||||||
(in thousands) | |||||||
United States | $ | 381,947 | $ | 289,875 | |||
International | 36,334 | 29,529 |
As of/Year ended December 31, 2018 | |||||||||||||||
Domestic Streaming | International Streaming | Domestic DVD | Consolidated | ||||||||||||
(in thousands) | |||||||||||||||
Total paid memberships at end of period (1) | 58,486 | 80,773 | 2,706 | ||||||||||||
Total paid net membership additions (1) | 5,676 | 22,939 | (624 | ) | |||||||||||
Total free trials at end of period | 2,065 | 7,131 | 25 | ||||||||||||
Revenues | $ | 7,646,647 | $ | 7,782,105 | $ | 365,589 | $ | 15,794,341 | |||||||
Cost of revenues | 4,038,394 | 5,776,047 | 153,097 | 9,967,538 | |||||||||||
Marketing | 1,025,351 | 1,344,118 | — | 2,369,469 | |||||||||||
Contribution profit | $ | 2,582,902 | $ | 661,940 | $ | 212,492 | 3,457,334 | ||||||||
Other operating expenses | 1,852,108 | ||||||||||||||
Operating income | 1,605,226 | ||||||||||||||
Other income (expense) | (378,768 | ) | |||||||||||||
Provision for income taxes | 15,216 | ||||||||||||||
Net income | $ | 1,211,242 |
Year Ended December 31, 2018 | |||||||||||||||
Domestic Streaming | International Streaming | Domestic DVD | Consolidated | ||||||||||||
(in thousands) | |||||||||||||||
Amortization of content assets | $ | 3,115,170 | $ | 4,416,918 | $ | 41,212 | $ | 7,573,300 |
As of/Year ended December 31, 2017 | |||||||||||||||
Domestic Streaming | International Streaming | Domestic DVD | Consolidated | ||||||||||||
(in thousands) | |||||||||||||||
Total paid memberships at end of period (1) | 52,810 | 57,834 | 3,330 | ||||||||||||
Total paid net membership additions (1) | 4,905 | 16,649 | (699 | ) | |||||||||||
Total free trials at end of period | 1,940 | 4,998 | 53 | ||||||||||||
Revenues | $ | 6,153,025 | $ | 5,089,191 | $ | 450,497 | $ | 11,692,713 | |||||||
Cost of revenues | 3,470,859 | 4,359,616 | 202,525 | 8,033,000 | |||||||||||
Marketing | 603,746 | 832,535 | — | 1,436,281 | |||||||||||
Contribution profit (loss) | $ | 2,078,420 | $ | (102,960 | ) | $ | 247,972 | 2,223,432 | |||||||
Other operating expenses | 1,384,753 | ||||||||||||||
Operating income | 838,679 | ||||||||||||||
Other income (expense) | (353,358 | ) | |||||||||||||
Benefit from income taxes | (73,608 | ) | |||||||||||||
Net income | $ | 558,929 |
Year Ended December 31, 2017 | |||||||||||||||
Domestic Streaming | International Streaming | Domestic DVD | Consolidated | ||||||||||||
(in thousands) | |||||||||||||||
Amortization of content assets | $ | 2,756,947 | $ | 3,440,870 | $ | 60,657 | $ | 6,258,474 |
As of/Year ended December 31, 2016 | |||||||||||||||
Domestic Streaming | International Streaming | Domestic DVD | Consolidated | ||||||||||||
(in thousands) | |||||||||||||||
Total paid memberships at end of period (1) | 47,905 | 41,185 | 4,029 | ||||||||||||
Total paid net membership additions (1) | 4,504 | 13,747 | (758 | ) | |||||||||||
Total free trials at end of period | 1,526 | 3,180 | 85 | ||||||||||||
Revenues | $ | 5,077,307 | $ | 3,211,095 | $ | 542,267 | $ | 8,830,669 | |||||||
Cost of revenues | 2,951,973 | 3,042,747 | 262,742 | 6,257,462 | |||||||||||
Marketing | 412,928 | 684,591 | — | 1,097,519 | |||||||||||
Contribution profit (loss) | $ | 1,712,406 | $ | (516,243 | ) | $ | 279,525 | 1,475,688 | |||||||
Other operating expenses | 1,095,895 | ||||||||||||||
Operating income | 379,793 | ||||||||||||||
Other income (expense) | (119,286 | ) | |||||||||||||
Provision for income taxes | 73,829 | ||||||||||||||
Net income | $ | 186,678 |
Year Ended December 31, 2016 | |||||||||||||||
Domestic Streaming | International Streaming | Domestic DVD | Consolidated | ||||||||||||
(in thousands) | |||||||||||||||
Amortization of content assets | $ | 2,337,950 | $ | 2,450,548 | $ | 78,952 | $ | 4,867,450 |
(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 other promotional offering by the Company to certain new and rejoining members. 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 cancellation of the service, as a result of a failed method of payment, becomes 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. |
Foreign currency | Change in unrealized gains on available-for-sale securities | Total | |||||||||
(in thousands) | |||||||||||
Balances as of December 31, 2016 | $ | (47,966 | ) | $ | (599 | ) | $ | (48,565 | ) | ||
Other comprehensive income before reclassifications | 27,409 | 728 | 28,137 | ||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | — | (129 | ) | (129 | ) | ||||||
Net decrease in other comprehensive loss | 27,409 | 599 | 28,008 | ||||||||
Balances as of December 31, 2017 | $ | (20,557 | ) | $ | — | $ | (20,557 | ) | |||
Other comprehensive income before reclassifications | 975 | — | 975 | ||||||||
Net decrease in other comprehensive loss | 975 | — | 975 | ||||||||
Balances as of December 31, 2018 | $ | (19,582 | ) | $ | — | $ | (19,582 | ) |
Balances as of December 31, 2016 | $ | 19,739 | |
Decreases related to tax positions taken during prior periods | (3,226 | ) | |
Increases related to tax positions taken during the current period | 26,389 | ||
Balances as of December 31, 2017 | 42,902 | ||
Increases related to tax positions taken during prior periods | 4,486 | ||
Decreases related to tax positions taken during prior periods | (17,922 | ) | |
Increases related to tax positions taken during the current period | 18,068 | ||
Balances as of December 31, 2018 | $ | 47,534 |
As of December 31, | |||||||
2018 | 2017 | ||||||
(in thousands) | |||||||
Licensed content, net | $ | 14,081,463 | $ | 11,771,778 | |||
Produced content, net | |||||||
Released, less amortization | 2,403,896 | 1,427,256 | |||||
In production | 3,305,126 | 1,311,137 | |||||
In development and pre-production | 311,842 | 158,517 | |||||
6,020,864 | 2,896,910 | ||||||
DVD, net | 9,813 | 13,301 | |||||
Total | $ | 20,112,140 | $ | 14,681,989 | |||
Current content assets, net | $ | 5,151,186 | $ | 4,310,934 | |||
Non-current content assets, net | $ | 14,960,954 | $ | 10,371,055 |
As of December 31, | Estimated Useful Lives (in Years) | |||||||||
2018 | 2017 | |||||||||
(in thousands) | ||||||||||
Leasehold improvements | $ | 282,028 | $ | 229,848 | Over life of lease | |||||
Information technology | 224,296 | 223,850 | 3 years | |||||||
Furniture and fixtures | 63,667 | 49,217 | 3-15 years | |||||||
Buildings | 73,468 | 40,681 | 30 years | |||||||
Corporate aircraft | 62,560 | 30,039 | 8 years | |||||||
DVD operations equipment | 53,416 | 59,316 | 5 years | |||||||
Machinery and equipment | 1,692 | — | 3 years | |||||||
Land | 6,125 | — | ||||||||
Capital work-in-progress | 19,548 | 8,267 | ||||||||
Property and equipment, gross | 786,800 | 641,218 | ||||||||
Less: Accumulated depreciation | (368,519 | ) | (321,814 | ) | ||||||
Property and equipment, net | $ | 418,281 | $ | 319,404 |