As of/ Year Ended December 31, | ||||||||||||
\u00a0 | 2019 | 2018 | 2017 | |||||||||
\u00a0 | (in thousands) | |||||||||||
Revenues | $ | 10,051,208 | $ | 8,281,532 | $ | 6,660,859 | ||||||
Paid net membership additions | 2,905 | 6,335 | 5,512 | |||||||||
Paid memberships at end of period | 67,662 | 64,757 | 58,422 |
As of/ Year Ended December 31, | ||||||||||||
\u00a0 | 2019 | 2018 | 2017 | |||||||||
\u00a0 | (in thousands) | |||||||||||
Revenues | $ | 5,543,067 | $ | 3,963,707 | $ | 2,362,813 | ||||||
Paid net membership additions | 13,960 | 11,814 | 8,173 | |||||||||
Paid memberships at end of period | 51,778 | 37,818 | 26,004 |
As of/ Year Ended December 31, | ||||||||||||
\u00a0 | 2019 | 2018 | 2017 | |||||||||
\u00a0 | (in thousands) | |||||||||||
Revenues | $ | 2,795,434 | $ | 2,237,697 | $ | 1,642,616 | ||||||
Paid net membership additions | 5,340 | 6,360 | 5,509 | |||||||||
Paid memberships at end of period | 31,417 | 26,077 | 19,717 |
As of/ Year Ended December 31, | ||||||||||||
\u00a0 | 2019 | 2018 | 2017 | |||||||||
\u00a0 | (in thousands) | |||||||||||
Revenues | $ | 1,469,521 | $ | 945,816 | $ | 575,928 | ||||||
Paid net membership additions | 5,626 | 4,106 | 2,360 | |||||||||
Paid memberships at end of period | 16,233 | 10,607 | 6,501 |
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\u2019s internal systems, which utilize industry standard geo-location technology. |
\u00a0 | Year ended December\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
\u00a0 | (in\u00a0thousands,\u00a0except\u00a0per\u00a0share\u00a0data) | ||||||||||
Basic earnings per share: | |||||||||||
Net income | $ | 1,866,916 | $ | 1,211,242 | $ | 558,929 | |||||
Shares used in computation: | |||||||||||
Weighted-average common shares outstanding | 437,799 | 435,374 | 431,885 | ||||||||
Basic earnings per share | $ | 4.26 | $ | 2.78 | $ | 1.29 | |||||
Diluted earnings per share: | |||||||||||
Net income | $ | 1,866,916 | $ | 1,211,242 | $ | 558,929 | |||||
Shares used in computation: | |||||||||||
Weighted-average common shares outstanding | 437,799 | 435,374 | 431,885 | ||||||||
Employee stock options | 13,966 | 15,870 | 14,929 | ||||||||
Weighted-average number of shares | 451,765 | 451,244 | 446,814 | ||||||||
Diluted earnings per share | $ | 4.13 | $ | 2.68 | $ | 1.25 |
\u00a0 | Year\u00a0ended\u00a0December\u00a031, | |||||||
\u00a0 | 2019 | 2018 | 2017 | |||||
\u00a0 | (in thousands) | |||||||
Employee stock options | 1,588 | 330 | 189 |
As of/ Year Ended December 31, | ||||||||||||
\u00a0 | 2019 | 2018 | 2017 | |||||||||
\u00a0 | (in thousands) | |||||||||||
Revenues | $ | 10,051,208 | $ | 8,281,532 | $ | 6,660,859 | ||||||
Paid net membership additions | 2,905 | 6,335 | 5,512 | |||||||||
Paid memberships at end of period | 67,662 | 64,757 | 58,422 |
As of/ Year Ended December 31, | ||||||||||||
\u00a0 | 2019 | 2018 | 2017 | |||||||||
\u00a0 | (in thousands) | |||||||||||
Revenues | $ | 5,543,067 | $ | 3,963,707 | $ | 2,362,813 | ||||||
Paid net membership additions | 13,960 | 11,814 | 8,173 | |||||||||
Paid memberships at end of period | 51,778 | 37,818 | 26,004 |
As of/ Year Ended December 31, | ||||||||||||
\u00a0 | 2019 | 2018 | 2017 | |||||||||
\u00a0 | (in thousands) | |||||||||||
Revenues | $ | 2,795,434 | $ | 2,237,697 | $ | 1,642,616 | ||||||
Paid net membership additions | 5,340 | 6,360 | 5,509 | |||||||||
Paid memberships at end of period | 31,417 | 26,077 | 19,717 |
As of/ Year Ended December 31, | ||||||||||||
\u00a0 | 2019 | 2018 | 2017 | |||||||||
\u00a0 | (in thousands) | |||||||||||
Revenues | $ | 1,469,521 | $ | 945,816 | $ | 575,928 | ||||||
Paid net membership additions | 5,626 | 4,106 | 2,360 | |||||||||
Paid memberships at end of period | 16,233 | 10,607 | 6,501 |
\u00a0 | Year ended December\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
\u00a0 | (in\u00a0thousands,\u00a0except\u00a0per\u00a0share\u00a0data) | ||||||||||
Basic earnings per share: | |||||||||||
Net income | $ | 1,866,916 | $ | 1,211,242 | $ | 558,929 | |||||
Shares used in computation: | |||||||||||
Weighted-average common shares outstanding | 437,799 | 435,374 | 431,885 | ||||||||
Basic earnings per share | $ | 4.26 | $ | 2.78 | $ | 1.29 | |||||
Diluted earnings per share: | |||||||||||
Net income | $ | 1,866,916 | $ | 1,211,242 | $ | 558,929 | |||||
Shares used in computation: | |||||||||||
Weighted-average common shares outstanding | 437,799 | 435,374 | 431,885 | ||||||||
Employee stock options | 13,966 | 15,870 | 14,929 | ||||||||
Weighted-average number of shares | 451,765 | 451,244 | 446,814 | ||||||||
Diluted earnings per share | $ | 4.13 | $ | 2.68 | $ | 1.25 |
\u00a0 | Year\u00a0ended\u00a0December\u00a031, | |||||||
\u00a0 | 2019 | 2018 | 2017 | |||||
\u00a0 | (in thousands) | |||||||
Employee stock options | 1,588 | 330 | 189 |
\u00a0 | As of December 31, 2019 | ||||||||||||||
\u00a0 | Cash and cash equivalents | Other Current Assets | Non-current Assets | Total | |||||||||||
\u00a0 | (in thousands) | ||||||||||||||
Cash | $ | 3,103,525 | $ | 1,863 | $ | 22,161 | $ | 3,127,549 | |||||||
Level 1 securities: | |||||||||||||||
Money market funds | 1,614,912 | \u2014 | 1,325 | 1,616,237 | |||||||||||
Level 2 securities: | |||||||||||||||
Foreign Time Deposits | 300,000 | \u2014 | \u2014 | 300,000 | |||||||||||
$ | 5,018,437 | $ | 1,863 | $ | 23,486 | $ | 5,043,786 |
\u00a0 | As of December 31, 2018 | ||||||||||
\u00a0 | Cash and cash equivalents | Non-current Assets | Total | ||||||||
\u00a0 | (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 |
\u00a0 | As of December 31, 2019 | ||||||||||||||
\u00a0 | Cash and cash equivalents | Other Current Assets | Non-current Assets | Total | |||||||||||
\u00a0 | (in thousands) | ||||||||||||||
Cash | $ | 3,103,525 | $ | 1,863 | $ | 22,161 | $ | 3,127,549 | |||||||
Level 1 securities: | |||||||||||||||
Money market funds | 1,614,912 | \u2014 | 1,325 | 1,616,237 | |||||||||||
Level 2 securities: | |||||||||||||||
Foreign Time Deposits | 300,000 | \u2014 | \u2014 | 300,000 | |||||||||||
$ | 5,018,437 | $ | 1,863 | $ | 23,486 | $ | 5,043,786 |
\u00a0 | As of December 31, 2018 | ||||||||||
\u00a0 | Cash and cash equivalents | Non-current Assets | Total | ||||||||
\u00a0 | (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, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Licensed content, net | $ | 14,703,352 | $ | 14,081,463 | |||
Produced content, net | |||||||
Released, less amortization | 4,382,685 | 2,403,896 | |||||
In production | 4,750,664 | 3,305,126 | |||||
In development and pre-production | 667,866 | 311,842 | |||||
9,801,215 | 6,020,864 | ||||||
Total | $ | 24,504,567 | $ | 20,102,327 | |||
Current content assets, net | $ | \u2014 | $ | 5,151,186 | |||
Non-current content assets, net | $ | 24,504,567 | $ | 14,951,141 |
Year ended December 31, | |||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
(in thousands) | |||||||||||
Licensed content | $ | 7,242,799 | $ | 6,511,689 | $ | 5,680,373 | |||||
Produced content | 1,973,448 | 1,020,399 | 517,444 | ||||||||
Total streaming content | $ | 9,216,247 | $ | 7,532,088 | $ | 6,197,817 |
As of December\u00a031, | Estimated Useful Lives (in Years) | |||||||||
2019 | 2018 | |||||||||
(in thousands) | ||||||||||
Land | $ | 6,125 | $ | 6,125 | ||||||
Buildings | 33,141 | 73,468 | 30 years | |||||||
Leasehold improvements | 354,999 | 282,028 | Over\u00a0life\u00a0of\u00a0lease | |||||||
Furniture and fixtures | 87,465 | 63,667 | 3-15 years | |||||||
Information technology | 243,565 | 224,296 | 3 years | |||||||
Corporate aircraft | 108,995 | 62,560 | 8 years | |||||||
Machinery and equipment | 46,415 | 55,108 | 3-5 years | |||||||
Capital work-in-progress | 100,521 | 19,548 | ||||||||
Property and equipment, gross | 981,226 | 786,800 | ||||||||
Less: Accumulated depreciation | (416,005 | ) | (368,519 | ) | ||||||
Property and equipment, net | $ | 565,221 | $ | 418,281 |
Year ended December 31, | |||
2019 | |||
(in thousands) | |||
Cash paid for operating lease liabilities | $ | 192,084 | |
Right-of-use assets obtained in exchange for new operating lease obligations (1) | 1,672,462 |
As of | ||
December\u00a031, 2019 | ||
Weighted-average remaining lease term | 8.8 years | |
Weighted-average discount rate | 5.0 | % |
Due in 12 month period ended December 31, | |||
2020 | $ | 248,636 | |
2021 | 246,148 | ||
2022 | 226,020 | ||
2023 | 211,387 | ||
2024 | 194,506 | ||
Thereafter | 912,457 | ||
2,039,154 | |||
Less imputed interest | (425,920 | ) | |
Total lease liabilities | 1,613,234 | ||
Current operating lease liabilities | 190,622 | ||
Non-current operating lease liabilities | 1,422,612 | ||
Total lease liabilities | $ | 1,613,234 |
As of | ||||||||
December 31, 2019 | December\u00a031, 2018 | |||||||
(in thousands) | ||||||||
Trade receivables | $ | 454,399 | $ | 362,712 | ||||
Prepaid expenses | 180,999 | 178,833 | ||||||
Other receivables | 524,669 | 206,921 | ||||||
Total other current assets | $ | 1,160,067 | $ | 748,466 |
As of December 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Licensed content, net | $ | 14,703,352 | $ | 14,081,463 | |||
Produced content, net | |||||||
Released, less amortization | 4,382,685 | 2,403,896 | |||||
In production | 4,750,664 | 3,305,126 | |||||
In development and pre-production | 667,866 | 311,842 | |||||
9,801,215 | 6,020,864 | ||||||
Total | $ | 24,504,567 | $ | 20,102,327 | |||
Current content assets, net | $ | \u2014 | $ | 5,151,186 | |||
Non-current content assets, net | $ | 24,504,567 | $ | 14,951,141 |
Year ended December 31, | |||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
(in thousands) | |||||||||||
Licensed content | $ | 7,242,799 | $ | 6,511,689 | $ | 5,680,373 | |||||
Produced content | 1,973,448 | 1,020,399 | 517,444 | ||||||||
Total streaming content | $ | 9,216,247 | $ | 7,532,088 | $ | 6,197,817 |
As of December\u00a031, | Estimated Useful Lives (in Years) | |||||||||
2019 | 2018 | |||||||||
(in thousands) | ||||||||||
Land | $ | 6,125 | $ | 6,125 | ||||||
Buildings | 33,141 | 73,468 | 30 years | |||||||
Leasehold improvements | 354,999 | 282,028 | Over\u00a0life\u00a0of\u00a0lease | |||||||
Furniture and fixtures | 87,465 | 63,667 | 3-15 years | |||||||
Information technology | 243,565 | 224,296 | 3 years | |||||||
Corporate aircraft | 108,995 | 62,560 | 8 years | |||||||
Machinery and equipment | 46,415 | 55,108 | 3-5 years | |||||||
Capital work-in-progress | 100,521 | 19,548 | ||||||||
Property and equipment, gross | 981,226 | 786,800 | ||||||||
Less: Accumulated depreciation | (416,005 | ) | (368,519 | ) | ||||||
Property and equipment, net | $ | 565,221 | $ | 418,281 |
Year ended December 31, | |||
2019 | |||
(in thousands) | |||
Cash paid for operating lease liabilities | $ | 192,084 | |
Right-of-use assets obtained in exchange for new operating lease obligations (1) | 1,672,462 |
As of | ||
December\u00a031, 2019 | ||
Weighted-average remaining lease term | 8.8 years | |
Weighted-average discount rate | 5.0 | % |
Due in 12 month period ended December 31, | |||
2020 | $ | 248,636 | |
2021 | 246,148 | ||
2022 | 226,020 | ||
2023 | 211,387 | ||
2024 | 194,506 | ||
Thereafter | 912,457 | ||
2,039,154 | |||
Less imputed interest | (425,920 | ) | |
Total lease liabilities | 1,613,234 | ||
Current operating lease liabilities | 190,622 | ||
Non-current operating lease liabilities | 1,422,612 | ||
Total lease liabilities | $ | 1,613,234 |
As of | ||||||||
December 31, 2019 | December\u00a031, 2018 | |||||||
(in thousands) | ||||||||
Trade receivables | $ | 454,399 | $ | 362,712 | ||||
Prepaid expenses | 180,999 | 178,833 | ||||||
Other receivables | 524,669 | 206,921 | ||||||
Total other current assets | $ | 1,160,067 | $ | 748,466 |
Level 2 Fair Value as of | |||||||||||||||||
Principal Amount at Par | Issuance Date | Maturity | Interest Due Dates | December\u00a031, 2019 | December\u00a031, 2018 | ||||||||||||
(in millions) | (in millions) | ||||||||||||||||
5.375% Senior Notes | $ | 500 | February 2013 | February 2021 | February and August | $ | 518 | $ | 509 | ||||||||
5.500% Senior Notes | 700 | February 2015 | February 2022 | April and October | 744 | 706 | |||||||||||
5.750% Senior Notes | 400 | February 2014 | March 2024 | March and September | 444 | 407 | |||||||||||
5.875% Senior Notes | 800 | February 2015 | February 2025 | April and October | 896 | 812 | |||||||||||
4.375% Senior Notes | 1,000 | October 2016 | November 2026 | May and November | 1,026 | 915 | |||||||||||
3.625% Senior Notes (1) | 1,459 | May 2017 | May 2027 | May and November | 1,565 | 1,446 | |||||||||||
4.875% Senior Notes | 1,600 | October 2017 | April 2028 | April and October | 1,670 | 1,464 | |||||||||||
5.875% Senior Notes | 1,900 | April 2018 | November 2028 | May and November | 2,111 | 1,851 | |||||||||||
4.625% Senior Notes (2) | 1,234 | October 2018 | May 2029 | May and November | 1,378 | 1,241 | |||||||||||
6.375% Senior Notes | 800 | October 2018 | May 2029 | May and November | 916 | 797 | |||||||||||
3.875% Senior Notes (3) | 1,346 | April 2019 | November 2029 | June and December | 1,429 | \u2014 | |||||||||||
5.375% Senior Notes | 900 | April 2019 | November 2029 | June and December | 960 | \u2014 | |||||||||||
3.625% Senior Notes (4) | 1,234 | October 2019 | June 2030 | June and December | 1,273 | \u2014 | |||||||||||
4.875% Senior Notes | 1,000 | October 2019 | June 2030 | June and December | 1,019 | \u2014 | |||||||||||
$ | 14,873 |
As\u00a0of\u00a0 | |||||||
December\u00a031, 2019 | December\u00a031, 2018 | ||||||
(in thousands) | |||||||
Less than one year | $ | 736,969 | $ | 538,384 | |||
Due after one year and through three years | 2,581,471 | 1,550,581 | |||||
Due after three years and through five years | 1,705,201 | 1,646,101 | |||||
Due after five years | 15,699,800 | 11,138,129 | |||||
Total debt obligations | $ | 20,723,441 | $ | 14,873,195 |
Level 2 Fair Value as of | |||||||||||||||||
Principal Amount at Par | Issuance Date | Maturity | Interest Due Dates | December\u00a031, 2019 | December\u00a031, 2018 | ||||||||||||
(in millions) | (in millions) | ||||||||||||||||
5.375% Senior Notes | $ | 500 | February 2013 | February 2021 | February and August | $ | 518 | $ | 509 | ||||||||
5.500% Senior Notes | 700 | February 2015 | February 2022 | April and October | 744 | 706 | |||||||||||
5.750% Senior Notes | 400 | February 2014 | March 2024 | March and September | 444 | 407 | |||||||||||
5.875% Senior Notes | 800 | February 2015 | February 2025 | April and October | 896 | 812 | |||||||||||
4.375% Senior Notes | 1,000 | October 2016 | November 2026 | May and November | 1,026 | 915 | |||||||||||
3.625% Senior Notes (1) | 1,459 | May 2017 | May 2027 | May and November | 1,565 | 1,446 | |||||||||||
4.875% Senior Notes | 1,600 | October 2017 | April 2028 | April and October | 1,670 | 1,464 | |||||||||||
5.875% Senior Notes | 1,900 | April 2018 | November 2028 | May and November | 2,111 | 1,851 | |||||||||||
4.625% Senior Notes (2) | 1,234 | October 2018 | May 2029 | May and November | 1,378 | 1,241 | |||||||||||
6.375% Senior Notes | 800 | October 2018 | May 2029 | May and November | 916 | 797 | |||||||||||
3.875% Senior Notes (3) | 1,346 | April 2019 | November 2029 | June and December | 1,429 | \u2014 | |||||||||||
5.375% Senior Notes | 900 | April 2019 | November 2029 | June and December | 960 | \u2014 | |||||||||||
3.625% Senior Notes (4) | 1,234 | October 2019 | June 2030 | June and December | 1,273 | \u2014 | |||||||||||
4.875% Senior Notes | 1,000 | October 2019 | June 2030 | June and December | 1,019 | \u2014 | |||||||||||
$ | 14,873 |
As\u00a0of\u00a0 | |||||||
December\u00a031, 2019 | December\u00a031, 2018 | ||||||
(in thousands) | |||||||
Less than one year | $ | 736,969 | $ | 538,384 | |||
Due after one year and through three years | 2,581,471 | 1,550,581 | |||||
Due after three years and through five years | 1,705,201 | 1,646,101 | |||||
Due after five years | 15,699,800 | 11,138,129 | |||||
Total debt obligations | $ | 20,723,441 | $ | 14,873,195 |
As of December 31, | |||||||
2019 | 2018 | ||||||
\u00a0 | (in\u00a0thousands) | ||||||
Less than one year | $ | 8,477,367 | $ | 8,611,398 | |||
Due after one year and through 3 years | 8,352,731 | 8,841,561 | |||||
Due after 3 years and through 5 years | 2,041,340 | 1,684,582 | |||||
Due after 5 years | 618,644 | 148,334 | |||||
Total streaming content obligations | $ | 19,490,082 | $ | 19,285,875 |
As of December 31, | |||||||
2019 | 2018 | ||||||
\u00a0 | (in\u00a0thousands) | ||||||
Less than one year | $ | 8,477,367 | $ | 8,611,398 | |||
Due after one year and through 3 years | 8,352,731 | 8,841,561 | |||||
Due after 3 years and through 5 years | 2,041,340 | 1,684,582 | |||||
Due after 5 years | 618,644 | 148,334 | |||||
Total streaming content obligations | $ | 19,490,082 | $ | 19,285,875 |
\u00a0 | Shares\u00a0Available for Grant | Options Outstanding | Weighted- Average Remaining Contractual Term (in\u00a0Years) | Aggregate Intrinsic\u00a0Value (in\u00a0Thousands) | |||||||||||
\u00a0 | Number of Shares | Weighted- Average Exercise Price (per Share) | |||||||||||||
Balances as of December 31, 2016 | 13,289,953 | 22,437,347 | $ | 44.83 | |||||||||||
Granted | (2,550,038 | ) | 2,550,038 | 159.56 | |||||||||||
Exercised | \u2014 | (3,338,474 | ) | 26.79 | |||||||||||
Expired | \u2014 | (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 | \u2014 | (3,205,911 | ) | 38.66 | |||||||||||
Expired | \u2014 | (2,135 | ) | $ | 4.60 | ||||||||||
Balances as of December 31, 2018 | 8,699,941 | 20,479,278 | $ | 89.61 | |||||||||||
Granted | (2,588,380 | ) | 2,588,380 | 320.66 | |||||||||||
Exercised | \u2014 | (2,208,052 | ) | 32.88 | |||||||||||
Expired | \u2014 | (280 | ) | 6.74 | |||||||||||
Balances as of December 31, 2019 | 6,111,561 | 20,859,326 | $ | 124.28 | 5.57 | $ | 4,230,013 | ||||||||
Vested and exercisable at December\u00a031, 2019 | 20,859,326 | $ | 124.28 | 5.57 | $ | 4,230,013 |
\u00a0 | Year\u00a0Ended\u00a0December\u00a031, | |||||||||||
\u00a0 | 2019 | 2018 | 2017 | |||||||||
Dividend yield | \u2014 | % | \u2014 | % | \u2014 | % | ||||||
Expected volatility | 37% - 41% | 40% - 42% | 34% - 37% | |||||||||
Risk-free interest rate | 1.74% - 2.74% | 2.61% - 3.09% | 2.24% - 2.45% | |||||||||
Suboptimal exercise factor | 3.07 - 3.23 | 2.80 - 3.01 | 2.48 - 2.63 | |||||||||
Valuation data: | ||||||||||||
Weighted-average fair value (per share) | $ | 156.60 | $ | 157.19 | $ | 71.45 | ||||||
Total stock-based compensation expense (in thousands) | 405,376 | 320,657 | 182,209 | |||||||||
Total income tax impact on provision (in thousands) | 90,856 | 67,575 | 61,842 |
Foreign currency | |||
(in thousands) | |||
Balances as of December 31, 2017 | $ | (20,557 | ) |
Other comprehensive income before reclassifications | 975 | ||
Net decrease in accumulated other comprehensive loss | 975 | ||
Balances as of December 31, 2018 | $ | (19,582 | ) |
Other comprehensive loss before reclassifications | (3,939 | ) | |
Net increase in accumulated other comprehensive loss | (3,939 | ) | |
Balances as of December 31, 2019 | $ | (23,521 | ) |
\u00a0 | Shares\u00a0Available for Grant | Options Outstanding | Weighted- Average Remaining Contractual Term (in\u00a0Years) | Aggregate Intrinsic\u00a0Value (in\u00a0Thousands) | |||||||||||
\u00a0 | Number of Shares | Weighted- Average Exercise Price (per Share) | |||||||||||||
Balances as of December 31, 2016 | 13,289,953 | 22,437,347 | $ | 44.83 | |||||||||||
Granted | (2,550,038 | ) | 2,550,038 | 159.56 | |||||||||||
Exercised | \u2014 | (3,338,474 | ) | 26.79 | |||||||||||
Expired | \u2014 | (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 | \u2014 | (3,205,911 | ) | 38.66 | |||||||||||
Expired | \u2014 | (2,135 | ) | $ | 4.60 | ||||||||||
Balances as of December 31, 2018 | 8,699,941 | 20,479,278 | $ | 89.61 | |||||||||||
Granted | (2,588,380 | ) | 2,588,380 | 320.66 | |||||||||||
Exercised | \u2014 | (2,208,052 | ) | 32.88 | |||||||||||
Expired | \u2014 | (280 | ) | 6.74 | |||||||||||
Balances as of December 31, 2019 | 6,111,561 | 20,859,326 | $ | 124.28 | 5.57 | $ | 4,230,013 | ||||||||
Vested and exercisable at December\u00a031, 2019 | 20,859,326 | $ | 124.28 | 5.57 | $ | 4,230,013 |
\u00a0 | Year\u00a0Ended\u00a0December\u00a031, | |||||||||||
\u00a0 | 2019 | 2018 | 2017 | |||||||||
Dividend yield | \u2014 | % | \u2014 | % | \u2014 | % | ||||||
Expected volatility | 37% - 41% | 40% - 42% | 34% - 37% | |||||||||
Risk-free interest rate | 1.74% - 2.74% | 2.61% - 3.09% | 2.24% - 2.45% | |||||||||
Suboptimal exercise factor | 3.07 - 3.23 | 2.80 - 3.01 | 2.48 - 2.63 | |||||||||
Valuation data: | ||||||||||||
Weighted-average fair value (per share) | $ | 156.60 | $ | 157.19 | $ | 71.45 | ||||||
Total stock-based compensation expense (in thousands) | 405,376 | 320,657 | 182,209 | |||||||||
Total income tax impact on provision (in thousands) | 90,856 | 67,575 | 61,842 |
Foreign currency | |||
(in thousands) | |||
Balances as of December 31, 2017 | $ | (20,557 | ) |
Other comprehensive income before reclassifications | 975 | ||
Net decrease in accumulated other comprehensive loss | 975 | ||
Balances as of December 31, 2018 | $ | (19,582 | ) |
Other comprehensive loss before reclassifications | (3,939 | ) | |
Net increase in accumulated other comprehensive loss | (3,939 | ) | |
Balances as of December 31, 2019 | $ | (23,521 | ) |
\u00a0 | Year Ended December\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
\u00a0 | (in thousands) | ||||||||||
United States | $ | 1,719,326 | $ | 845,402 | $ | 144,100 | |||||
Foreign | 342,905 | 381,056 | 341,221 | ||||||||
Income before income taxes | $ | 2,062,231 | $ | 1,226,458 | $ | 485,321 |
\u00a0 | Year Ended December\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
\u00a0 | (in thousands) | ||||||||||
Current tax provision: | |||||||||||
Federal | $ | 21,498 | $ | (22,176 | ) | $ | 54,245 | ||||
State | 45,228 | (10,234 | ) | (7,601 | ) | ||||||
Foreign | 223,328 | 133,146 | 88,436 | ||||||||
Total current | 290,054 | 100,736 | 135,080 | ||||||||
Deferred tax provision: | |||||||||||
Federal | (28,003 | ) | (37,396 | ) | (153,963 | ) | |||||
State | (54,507 | ) | (52,391 | ) | (52,695 | ) | |||||
Foreign | (12,229 | ) | 4,267 | (2,030 | ) | ||||||
Total deferred | (94,739 | ) | (85,520 | ) | (208,688 | ) | |||||
Provision for (benefit from) income taxes | $ | 195,315 | $ | 15,216 | $ | (73,608 | ) |
\u00a0 | Year Ended December\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
\u00a0 | (in thousands) | ||||||||||
Expected tax expense at U.S. Federal statutory rates | $ | 433,059 | $ | 257,556 | $ | 169,860 | |||||
State income taxes, net of Federal income tax effect | 47,909 | 33,611 | 6,404 | ||||||||
Foreign earnings at other than U.S. rates | 56,969 | 63,519 | (87,514 | ) | |||||||
Federal and California R&D tax credits | (134,523 | ) | (140,749 | ) | (79,868 | ) | |||||
Excess tax benefits on stock-based compensation | (148,693 | ) | (191,323 | ) | (157,888 | ) | |||||
Impact of the Tax Cuts and Jobs Act of 2017 | |||||||||||
Rate Change / Transition Tax | \u2014 | (71,516 | ) | 79,077 | |||||||
Tax effects of the Tax Cuts and Jobs Act | (127,534 | ) | 43,099 | \u2014 | |||||||
Global corporate structure simplification | 35,939 | \u2014 | \u2014 | ||||||||
Nondeductible Officers Compensation | 24,111 | 14,377 | 28 | ||||||||
Other | 8,078 | 6,642 | (3,707 | ) | |||||||
Provision for (benefit from) income taxes | $ | 195,315 | $ | 15,216 | $ | (73,608 | ) | ||||
Effective Tax Rate | 9 | % | 1 | % | (15 | )% |
\u00a0 | As of\u00a0December\u00a031, | ||||||
\u00a0 | 2019 | 2018 | |||||
\u00a0 | (in thousands) | ||||||
Deferred tax assets: | |||||||
Stock-based compensation | $ | 258,376 | $ | 190,451 | |||
Federal and California tax R&D credits | 408,715 | 369,023 | |||||
Foreign tax credits | 137,818 | 218,026 | |||||
Accruals and reserves | 42,450 | 36,396 | |||||
Operating leases | 349,208 | \u2014 | |||||
Other | 6,510 | 27,203 | |||||
Gross deferred tax assets | 1,203,077 | 841,099 | |||||
Depreciation & amortization | (80,921 | ) | (151,678 | ) | |||
Operating leases | (329,168 | ) | \u2014 | ||||
Gross deferred tax liabilities | (410,089 | ) | (151,678 | ) | |||
Valuation allowance | (134,782 | ) | (124,996 | ) | |||
Net deferred tax assets | $ | 658,206 | $ | 564,425 |
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 | ||
Increases related to tax positions taken during prior periods | 925 | ||
Decreases related to tax positions taken during prior periods | (417 | ) | |
Increases related to tax positions taken during the current period | 18,826 | ||
Decreases related to expiration of statute of limitations | (100 | ) | |
Balances as of December 31, 2019 | $ | 66,768 |
\u00a0 | Year Ended December\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
\u00a0 | (in thousands) | ||||||||||
United States | $ | 1,719,326 | $ | 845,402 | $ | 144,100 | |||||
Foreign | 342,905 | 381,056 | 341,221 | ||||||||
Income before income taxes | $ | 2,062,231 | $ | 1,226,458 | $ | 485,321 |
\u00a0 | Year Ended December\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
\u00a0 | (in thousands) | ||||||||||
Current tax provision: | |||||||||||
Federal | $ | 21,498 | $ | (22,176 | ) | $ | 54,245 | ||||
State | 45,228 | (10,234 | ) | (7,601 | ) | ||||||
Foreign | 223,328 | 133,146 | 88,436 | ||||||||
Total current | 290,054 | 100,736 | 135,080 | ||||||||
Deferred tax provision: | |||||||||||
Federal | (28,003 | ) | (37,396 | ) | (153,963 | ) | |||||
State | (54,507 | ) | (52,391 | ) | (52,695 | ) | |||||
Foreign | (12,229 | ) | 4,267 | (2,030 | ) | ||||||
Total deferred | (94,739 | ) | (85,520 | ) | (208,688 | ) | |||||
Provision for (benefit from) income taxes | $ | 195,315 | $ | 15,216 | $ | (73,608 | ) |
\u00a0 | Year Ended December\u00a031, | ||||||||||
\u00a0 | 2019 | 2018 | 2017 | ||||||||
\u00a0 | (in thousands) | ||||||||||
Expected tax expense at U.S. Federal statutory rates | $ | 433,059 | $ | 257,556 | $ | 169,860 | |||||
State income taxes, net of Federal income tax effect | 47,909 | 33,611 | 6,404 | ||||||||
Foreign earnings at other than U.S. rates | 56,969 | 63,519 | (87,514 | ) | |||||||
Federal and California R&D tax credits | (134,523 | ) | (140,749 | ) | (79,868 | ) | |||||
Excess tax benefits on stock-based compensation | (148,693 | ) | (191,323 | ) | (157,888 | ) | |||||
Impact of the Tax Cuts and Jobs Act of 2017 | |||||||||||
Rate Change / Transition Tax | \u2014 | (71,516 | ) | 79,077 | |||||||
Tax effects of the Tax Cuts and Jobs Act | (127,534 | ) | 43,099 | \u2014 | |||||||
Global corporate structure simplification | 35,939 | \u2014 | \u2014 | ||||||||
Nondeductible Officers Compensation | 24,111 | 14,377 | 28 | ||||||||
Other | 8,078 | 6,642 | (3,707 | ) | |||||||
Provision for (benefit from) income taxes | $ | 195,315 | $ | 15,216 | $ | (73,608 | ) | ||||
Effective Tax Rate | 9 | % | 1 | % | (15 | )% |
\u00a0 | As of\u00a0December\u00a031, | ||||||
\u00a0 | 2019 | 2018 | |||||
\u00a0 | (in thousands) | ||||||
Deferred tax assets: | |||||||
Stock-based compensation | $ | 258,376 | $ | 190,451 | |||
Federal and California tax R&D credits | 408,715 | 369,023 | |||||
Foreign tax credits | 137,818 | 218,026 | |||||
Accruals and reserves | 42,450 | 36,396 | |||||
Operating leases | 349,208 | \u2014 | |||||
Other | 6,510 | 27,203 | |||||
Gross deferred tax assets | 1,203,077 | 841,099 | |||||
Depreciation & amortization | (80,921 | ) | (151,678 | ) | |||
Operating leases | (329,168 | ) | \u2014 | ||||
Gross deferred tax liabilities | (410,089 | ) | (151,678 | ) | |||
Valuation allowance | (134,782 | ) | (124,996 | ) | |||
Net deferred tax assets | $ | 658,206 | $ | 564,425 |
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 | ||
Increases related to tax positions taken during prior periods | 925 | ||
Decreases related to tax positions taken during prior periods | (417 | ) | |
Increases related to tax positions taken during the current period | 18,826 | ||
Decreases related to expiration of statute of limitations | (100 | ) | |
Balances as of December 31, 2019 | $ | 66,768 |
As of December 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
United States | $ | 1,503,459 | $ | 381,947 | |||
International | 594,047 | 36,334 |
As of December 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
United States | $ | 1,503,459 | $ | 381,947 | |||
International | 594,047 | 36,334 |
December\u00a031 | September\u00a030 | June\u00a030 | March\u00a031 | ||||||||||||
\u00a0 | (in thousands, except for per share data) | ||||||||||||||
2019 | |||||||||||||||
Total revenues | $ | 5,467,434 | $ | 5,244,905 | $ | 4,923,116 | $ | 4,520,992 | |||||||
Gross profit | 2,001,411 | 2,146,986 | 1,917,459 | 1,650,378 | |||||||||||
Net income | 586,970 | 665,244 | 270,650 | 344,052 | |||||||||||
Earnings per share: | |||||||||||||||
Basic | $ | 1.34 | $ | 1.52 | $ | 0.62 | $ | 0.79 | |||||||
Diluted | 1.30 | 1.47 | 0.60 | 0.76 | |||||||||||
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 |
December\u00a031 | September\u00a030 | June\u00a030 | March\u00a031 | ||||||||||||
\u00a0 | (in thousands, except for per share data) | ||||||||||||||
2019 | |||||||||||||||
Total revenues | $ | 5,467,434 | $ | 5,244,905 | $ | 4,923,116 | $ | 4,520,992 | |||||||
Gross profit | 2,001,411 | 2,146,986 | 1,917,459 | 1,650,378 | |||||||||||
Net income | 586,970 | 665,244 | 270,650 | 344,052 | |||||||||||
Earnings per share: | |||||||||||||||
Basic | $ | 1.34 | $ | 1.52 | $ | 0.62 | $ | 0.79 | |||||||
Diluted | 1.30 | 1.47 | 0.60 | 0.76 | |||||||||||
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 |