Cover
Cover - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 001-35727 | |
Entity Registrant Name | Netflix, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0467272 | |
Entity Address, Address Line One | 100 Winchester Circle, | |
Entity Address, City or Town | Los Gatos | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95032 | |
City Area Code | 408 | |
Local Phone Number | 540-3700 | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Trading Symbol | NFLX | |
Security Exchange Name | NASDAQ | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
ICFR Auditor Attestation Flag | true | |
Entity Shell Company | false | |
Entity Public Float | $ 196,932,116,552 | |
Entity Common Stock, Shares Outstanding | 442,895,261 | |
Documents Incorporated by Reference | Parts of the registrant’s Proxy Statement for the registrant’s 2021 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. | |
Entity Central Index Key | 0001065280 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Revenues | $ 24,996,056 | $ 20,156,447 | $ 15,794,341 |
Cost of revenues | 15,276,319 | 12,440,213 | 9,967,538 |
Marketing | 2,228,362 | 2,652,462 | 2,369,469 |
Technology and development | 1,829,600 | 1,545,149 | 1,221,814 |
General and administrative | 1,076,486 | 914,369 | 630,294 |
Operating income | 4,585,289 | 2,604,254 | 1,605,226 |
Other income (expense): | |||
Interest expense | (767,499) | (626,023) | (420,493) |
Interest and other income (expense) | (618,441) | 84,000 | 41,725 |
Income before income taxes | 3,199,349 | 2,062,231 | 1,226,458 |
Provision for income taxes | (437,954) | (195,315) | (15,216) |
Net income | $ 2,761,395 | $ 1,866,916 | $ 1,211,242 |
Earnings per share: | |||
Basic (in USD per share) | $ 6.26 | $ 4.26 | $ 2.78 |
Diluted (in USD per share) | $ 6.08 | $ 4.13 | $ 2.68 |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 440,922 | 437,799 | 435,374 |
Diluted (in shares) | 454,208 | 451,765 | 451,244 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 2,761,395 | $ 1,866,916 | $ 1,211,242 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 67,919 | (3,939) | 975 |
Comprehensive income | $ 2,829,314 | $ 1,862,977 | $ 1,212,217 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 2,761,395 | $ 1,866,916 | $ 1,211,242 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Additions to content assets | (11,779,284) | (13,916,683) | (13,043,437) |
Change in content liabilities | (757,433) | (694,011) | 999,880 |
Amortization of content assets | 10,806,912 | 9,216,247 | 7,532,088 |
Depreciation and amortization of property, equipment and intangibles | 115,710 | 103,579 | 83,157 |
Stock-based compensation expense | 415,180 | 405,376 | 320,657 |
Foreign currency remeasurement loss (gain) on debt | 533,278 | (45,576) | (73,953) |
Other non-cash items | 293,126 | 228,230 | 81,640 |
Deferred income taxes | 70,066 | (94,443) | (85,520) |
Changes in operating assets and liabilities: | |||
Other current assets | (187,623) | (252,113) | (200,192) |
Accounts payable | (41,605) | 96,063 | 199,198 |
Accrued expenses and other liabilities | 198,183 | 157,778 | 150,422 |
Deferred revenue | 193,247 | 163,846 | 142,277 |
Other non-current assets and liabilities | (194,075) | (122,531) | 2,062 |
Net cash provided by (used in) operating activities | 2,427,077 | (2,887,322) | (2,680,479) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (497,923) | (253,035) | (173,946) |
Change in other assets | (7,431) | (134,029) | (165,174) |
Net cash used in investing activities | (505,354) | (387,064) | (339,120) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 1,009,464 | 4,469,306 | 3,961,852 |
Debt issuance costs | (7,559) | (36,134) | (35,871) |
Proceeds from issuance of common stock | 235,406 | 72,490 | 124,502 |
Other financing activities | 0 | 0 | (1,956) |
Net cash provided by financing activities | 1,237,311 | 4,505,662 | 4,048,527 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 36,050 | 469 | (39,682) |
Net increase in cash, cash equivalents and restricted cash | 3,195,084 | 1,231,745 | 989,246 |
Cash and cash equivalents, beginning of year | 5,043,786 | 3,812,041 | 2,822,795 |
Cash, cash equivalents and restricted cash, end of year | 8,238,870 | 5,043,786 | 3,812,041 |
Supplemental disclosure: | |||
Income taxes paid | 291,582 | 400,658 | 131,069 |
Interest paid | $ 762,904 | $ 599,132 | $ 375,831 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 8,205,550 | $ 5,018,437 |
Other current assets | 1,556,030 | 1,160,067 |
Total current assets | 9,761,580 | 6,178,504 |
Content assets, net | 25,383,950 | 24,504,567 |
Property and equipment, net | 960,183 | 565,221 |
Other non-current assets | 3,174,646 | 2,727,420 |
Total assets | 39,280,359 | 33,975,712 |
Current liabilities: | ||
Current content liabilities | 4,429,536 | 4,413,561 |
Accounts payable | 656,183 | 674,347 |
Accrued expenses and other liabilities | 1,102,196 | 843,043 |
Deferred revenue | 1,117,992 | 924,745 |
Short-term debt | 499,878 | 0 |
Total current liabilities | 7,805,785 | 6,855,696 |
Non-current content liabilities | 2,618,084 | 3,334,323 |
Long-term debt | 15,809,095 | 14,759,260 |
Other non-current liabilities | 1,982,155 | 1,444,276 |
Total liabilities | 28,215,119 | 26,393,555 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized at December 31, 2020 and 2019; no shares issued and outstanding at December 31, 2020 and 2019 | 0 | 0 |
Common stock, 0.001 par value; 4,990,000,000 shares authorized at December 31, 2020 and December 31, 2019, respectively; 442,895,261 and 438,806,649 issued and outstanding at December 31, 2020 and December 31, 2019, respectively | 3,447,698 | 2,793,929 |
Accumulated other comprehensive income (loss) | 44,398 | (23,521) |
Retained earnings | 7,573,144 | 4,811,749 |
Total stockholders’ equity | 11,065,240 | 7,582,157 |
Total liabilities and stockholders’ equity | $ 39,280,359 | $ 33,975,712 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 4,990,000,000 | 4,990,000,000 |
Common stock, shares issued (in shares) | 442,895,261 | 438,806,649 |
Common stock, shares outstanding (in shares) | 442,895,261 | 438,806,649 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock and Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment |
Beginning Balance (in shares) at Dec. 31, 2017 | 433,392,686 | |||||
Beginning Balance at Dec. 31, 2017 | $ 3,581,956 | $ 1,871,396 | $ (20,557) | $ 1,731,117 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,211,242 | 1,211,242 | ||||
Other comprehensive income (loss) | $ 975 | 975 | ||||
Issuance of common stock upon exercise of options (in shares) | 3,205,911 | 3,205,911 | ||||
Issuance of common stock upon exercise of options | $ 123,935 | $ 123,935 | ||||
Stock-based compensation expense | 320,657 | $ 320,657 | ||||
Ending Balance (in shares) at Dec. 31, 2018 | 436,598,597 | |||||
Ending Balance at Dec. 31, 2018 | $ 5,238,765 | $ 2,474 | $ 2,315,988 | (19,582) | 2,942,359 | $ 2,474 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | |||||
Net income | $ 1,866,916 | 1,866,916 | ||||
Other comprehensive income (loss) | $ (3,939) | (3,939) | ||||
Issuance of common stock upon exercise of options (in shares) | 2,208,052 | 2,208,052 | ||||
Issuance of common stock upon exercise of options | $ 72,565 | $ 72,565 | ||||
Stock-based compensation expense | 405,376 | $ 405,376 | ||||
Ending Balance (in shares) at Dec. 31, 2019 | 438,806,649 | |||||
Ending Balance at Dec. 31, 2019 | 7,582,157 | $ 2,793,929 | (23,521) | 4,811,749 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 2,761,395 | 2,761,395 | ||||
Other comprehensive income (loss) | $ 67,919 | 67,919 | ||||
Issuance of common stock upon exercise of options (in shares) | 4,088,612 | 4,088,612 | ||||
Issuance of common stock upon exercise of options | $ 238,589 | $ 238,589 | ||||
Stock-based compensation expense | 415,180 | $ 415,180 | ||||
Ending Balance (in shares) at Dec. 31, 2020 | 442,895,261 | |||||
Ending Balance at Dec. 31, 2020 | $ 11,065,240 | $ 3,447,698 | $ 44,398 | $ 7,573,144 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Description of Business Netflix, Inc. (the “Company”) was incorporated on August 29, 1997 and began operations on April 14, 1998. The Company is one of the world’s leading entertainment services with approximately 204 million paid memberships in over 190 countries enjoying TV series, documentaries and feature films across a wide variety of genres and languages. Members can watch as much as they want, anytime, anywhere, on any internet-connected screen. Members can play, pause and resume watching, all without commercials. Additionally, the Company continues to offer its DVD-by-mail service in the United States ("U.S."). Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions include the content asset amortization policy and the recognition and measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results may differ from these estimates. Recently adopted accounting pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326) , in order to improve financial reporting of expected credit losses on financial instruments and other commitments to extend credit. ASU 2016-13 requires that an entity measure and recognize expected credit losses for financial assets held at amortized cost and replaces the incurred loss impairment methodology in prior GAAP with a methodology that requires consideration of a broader range of information to estimate credit losses. The Company adopted ASU 2016-13 in the first quarter of 2020 and the impact of the adoption was not material to the Company's consolidated financial statements as credit losses are not expected to be significant based on historical collection trends, the financial condition of payment partners, and external market factors. Recently issued accounting pronouncements not yet adopted In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) . ASU 2019-12 removes certain exceptions for performing intraperiod tax allocations, recognizing deferred taxes for investments, and calculating income taxes in interim periods. The guidance also simplifies the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill, and the effect of enacted changes in tax laws or rates in interim periods. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. While the Company is continuing to assess the potential impacts of ASU 2019-12, it does not expect ASU 2019-12 to have a material effect, if any, on its financial statements. Cash Equivalents The Company considers investments in instruments purchased with an original maturity of 90 days or less to be cash equivalents. The Company also classifies amounts in transit from payment processors for customer credit card and debit card transactions as cash equivalents. Content The Company acquires, licenses and produces content, including original programming, in order to offer members unlimited viewing of video entertainment. The content licenses are for a fixed fee and specific windows of availability. Payment terms for certain content licenses and the production of content require more upfront cash payments relative to the amortization expense. Payments for content, including additions to content assets and the changes in related liabilities, are classified within "Net cash provided by (used in) operating activities" on the Consolidated Statements of Cash Flows. The Company recognizes content assets (licensed and produced) as “Content assets, net” on the Consolidated Balance Sheets. For licensed content, the Company capitalizes the fee per title and records a corresponding liability at the gross amount of the liability when the license period begins, the cost of the title is known and the title is accepted and available for streaming. For produced content, the Company capitalizes costs associated with the production, including development costs, direct costs and production overhead. Participations and residuals are expensed in line with the amortization of production costs. Based on factors including historical and estimated viewing patterns, the Company amortizes the content assets (licensed and produced) in “Cost of revenues” on the Consolidated Statements of Operations over the shorter of each title's contractual window of availability or estimated period of use or ten years, beginning with the month of first availability. The amortization is on an accelerated basis, as the Company typically expects more upfront viewing, for instance due to additional merchandising and marketing efforts and film amortization is more accelerated than TV series amortization. On average, over 90% of a licensed or produced content asset is expected to be amortized within four years after its month of first availability. The Company reviews factors impacting the amortization of the content assets on an ongoing basis. The Company's estimates related to these factors require considerable management judgment. The Company's business model is subscription based as opposed to a model generating revenues at a specific title level. Content assets (licensed and produced) are predominantly monetized as a group and therefore are reviewed in aggregate at a group level when an event or change in circumstances indicates a change in the expected usefulness of the content or that the fair value may be less than unamortized cost. To date, the Company has not identified any such event or changes in circumstances. If such changes are identified in the future, these aggregated content assets will be stated at the lower of unamortized cost or fair value. In addition, unamortized costs for assets that have been, or are expected to be, abandoned are written off. Property and Equipment Property and equipment are carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the shorter of the estimated useful lives of the respective assets, generally up to 30 years, or the expected lease term for leasehold improvements, if applicable. Trade Receivables Trade receivables consist primarily of amounts related to members and payment partners that collect membership fees on the Company's behalf. The Company evaluates the need for an allowance for doubtful accounts based on historical collection trends, the financial condition of its payment partners, and external market factors. Marketing Marketing expenses consist primarily of advertising expenses and certain payments made to the Company’s partners, including consumer electronics ("CE") manufacturers, multichannel video programming distributors ("MVPDs"), mobile operators and internet service providers ("ISPs"). Advertising expenses include promotional activities such as digital and television advertising. Advertising costs are expensed as incurred. Advertising expenses were $1,447 million, $1,879 million and $1,808 million for the years ended December 31, 2020, 2019 and 2018, respectively. Marketing expenses also include payroll and related expenses for personnel that support the Company's marketing activities. Research and Development Research and development expenses consist of payroll and related costs incurred in making improvements to our service offerings. Research and development expenses were $1,984 million, $1,673 million and $1,218 million for the years ended December 31, 2020, 2019 and 2018, respectively. Income Taxes The Company records a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Deferred income taxes are recognized by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as net operating loss and tax credit carryforwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance for any tax benefits for which future realization is uncertain. The Company did not recognize certain tax benefits from uncertain tax positions within the provision for income taxes. The Company may recognize a tax benefit only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. See Note 10 to the consolidated financial statements for further information regarding income taxes. Foreign Currency The functional currency for the Company's subsidiaries is determined based on the primary economic environment in which the subsidiary operates. The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenues and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in cumulative translation adjustment included in "Accumulated other comprehensive income (loss)" in Stockholders’ equity on the Consolidated Balance Sheets. The Company remeasures monetary assets and liabilities that are not denominated in the functional currency at exchange rates in effect at the end of each period. Gains and losses from these remeasurements are recognized in interest and other income (expense). Foreign currency transactions resulted in a loss of $660 million, a gain of $7 million, and a loss of $1 million for the years ended December 31, 2020, 2019 and 2018, respectively. These gains and losses were primarily due to the non-cash remeasurement of our Senior Notes denominated in euros and the remeasurement of cash and content liability positions denominated in currencies other than functional currencies. Stock-Based Compensation The Company grants fully vested non-qualified stock options to its employees on a monthly basis. As a result of immediate vesting, stock-based compensation expense is fully recognized on the grant date, and no estimate is required for post-vesting option forfeitures. See Note 9 to the consolidated financial statements for further information regarding stock-based compensation. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company's primary source of revenues is from monthly membership fees. Members are billed in advance of the start of their monthly membership and revenues are recognized ratably over each monthly membership period. Revenues are presented net of the taxes that are collected from members and remitted to governmental authorities. The Company is the principal in all its relationships where partners, including CE manufacturers, MVPDs, mobile operators and ISPs, provide access to the service as the Company retains control over service delivery to its members. Typically, payments made to the partners, such as for marketing, are expensed. However, if there is no distinct service provided in exchange for the payments made to the partners or if the price that the member pays is established by the partners and there is no standalone price for the Netflix service (for instance, in a bundle), these payments are recognized as a reduction of revenues. The following tables summarize streaming revenues, paid net membership additions, and ending paid memberships by region for the years December 31, 2020, 2019 and 2018, respectively: United States and Canada (UCAN) As of/ Year Ended December 31, 2020 2019 2018 (in thousands) Revenues $ 11,455,396 $ 10,051,208 $ 8,281,532 Paid net membership additions 6,274 2,905 6,335 Paid memberships at end of period 73,936 67,662 64,757 Europe, Middle East, and Africa (EMEA) As of/ Year Ended December 31, 2020 2019 2018 (in thousands) Revenues $ 7,772,252 $ 5,543,067 $ 3,963,707 Paid net membership additions 14,920 13,960 11,814 Paid memberships at end of period 66,698 51,778 37,818 Latin America (LATAM) As of/ Year Ended December 31, 2020 2019 2018 (in thousands) Revenues $ 3,156,727 $ 2,795,434 $ 2,237,697 Paid net membership additions 6,120 5,340 6,360 Paid memberships at end of period 37,537 31,417 26,077 Asia-Pacific (APAC) As of/ Year Ended December 31, 2020 2019 2018 (in thousands) Revenues $ 2,372,300 $ 1,469,521 $ 945,816 Paid net membership additions 9,259 5,626 4,106 Paid memberships at end of period 25,492 16,233 10,607 A paid membership (also referred to as a paid subscription) is defined as a membership that has the right to receive Netflix service following sign-up and a method of payment being provided, and that is not part of a free trial or certain other promotions that may be offered by the Company to new or rejoining members. A membership is canceled and ceases to be reflected in the above metrics as of the effective cancellation date. Voluntary cancellations generally become effective at the end of the prepaid membership period. Involuntary cancellations, as a result of a failed method of payment, become effective immediately. Memberships are assigned to territories based on the geographic location used at time of sign-up as determined by the Company’s internal systems, which utilize industry standard geo-location technology. Total U.S. revenues, inclusive of DVD revenues not reported in the tables above, were $10.8 billion, $9.5 billion and $8.0 billion for the years ended December 31, 2020, 2019 and 2018, respectively. DVD revenues were $0.2 billion, $0.3 billion, and $0.4 billion for the years ended December 31, 2020, 2019 and 2018, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential common shares outstanding during the period. Potential common shares consist of incremental shares issuable upon the assumed exercise of stock options. The computation of earnings per share is as follows: Year ended December 31, 2020 2019 2018 (in thousands, except per share data) Basic earnings per share: Net income $ 2,761,395 $ 1,866,916 $ 1,211,242 Shares used in computation: Weighted-average common shares outstanding 440,922 437,799 435,374 Basic earnings per share $ 6.26 $ 4.26 $ 2.78 Diluted earnings per share: Net income $ 2,761,395 $ 1,866,916 $ 1,211,242 Shares used in computation: Weighted-average common shares outstanding 440,922 437,799 435,374 Employee stock options 13,286 13,966 15,870 Weighted-average number of shares 454,208 451,765 451,244 Diluted earnings per share $ 6.08 $ 4.13 $ 2.68 Employee stock options with exercise prices greater than the average market price of the common stock were excluded from the diluted calculation as their inclusion would have been anti-dilutive. The following table summarizes the potential common shares excluded from the diluted calculation: Year ended December 31, 2020 2019 2018 (in thousands) Employee stock options 484 1,588 330 |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 12 Months Ended |
Dec. 31, 2020 | |
Short-Term Investments And Fair Value Measurement [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The following tables summarize the Company's cash, cash equivalents and restricted cash as of December 31, 2020 and 2019: As of December 31, 2020 Cash and cash equivalents Other Current Assets Non-current Assets Total (in thousands) Cash $ 3,331,860 $ 1,783 $ 31,284 $ 3,364,927 Level 1 securities: Money market funds 4,573,690 — 253 4,573,943 Level 2 securities: Foreign Time Deposits 300,000 — 300,000 $ 8,205,550 $ 1,783 $ 31,537 $ 8,238,870 As of December 31, 2019 Cash and cash equivalents Other Current Assets Non-current Assets Total (in thousands) Cash $ 3,103,525 $ 1,863 $ 22,161 $ 3,127,549 Level 1 securities: Money market funds 1,614,912 — 1,325 1,616,237 Level 2 securities: Foreign Time Deposits 300,000 — — 300,000 $ 5,018,437 $ 1,863 $ 23,486 $ 5,043,786 Other current assets include restricted cash for deposits related to self insurance. Non-current assets include restricted cash related to letter of credit agreements. Foreign time deposits of $300 million, classified as Level 2 securities, were included in Cash and cash equivalents on the Company's Balance Sheet as of December 31, 2020 and December 31, 2019. The fair value of cash equivalents included in the Level 2 category is based on observable inputs, such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. See Note 6 to the consolidated financial statements for further information regarding the fair value of the Company’s senior notes. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Components Disclosure [Abstract] | |
Balance Sheet Components | Balance Sheet Components Content Assets, Net Content assets consisted of the following: As of December 31, 2020 2019 (in thousands) Licensed content, net $ 13,747,607 $ 14,703,352 Produced content, net Released, less amortization 5,809,681 4,382,685 In production 4,827,455 4,750,664 In development and pre-production 999,207 667,866 11,636,343 9,801,215 Content assets, net $ 25,383,950 $ 24,504,567 As of December 31, 2020, approximately $5,637 million, $3,494 million, and $2,134 million of the $13,748 million unamortized cost of the licensed content is expected to be amortized in each of the next three years. As of December 31, 2020, approximately $2,183 million, $1,629 million, and $1,092 million of the $5,810 million unamortized cost of the produced content that has been released is expected to be amortized in each of the next three years. As of December 31, 2020, the amount of accrued participations and residuals was not material. The following table represents the amortization of content assets: Year ended December 31, 2020 2019 2018 (in thousands) Licensed content $ 7,544,631 $ 7,242,799 $ 6,511,689 Produced content 3,262,281 1,973,448 1,020,399 Total $ 10,806,912 $ 9,216,247 $ 7,532,088 Property and Equipment, Net Property and equipment and accumulated depreciation consisted of the following: As of December 31, Estimated Useful Lives (in Years) 2020 2019 (in thousands) Land $ 50,700 $ 6,125 Buildings 42,717 33,141 30 years Leasehold improvements 524,537 354,999 Over life of lease Furniture and fixtures 110,185 87,465 3-15 years Information technology 283,014 243,565 3 years Corporate aircraft 110,629 108,995 8 years Machinery and equipment 34,633 46,415 3-5 years Capital work-in-progress 298,558 100,521 Property and equipment, gross 1,454,973 981,226 Less: Accumulated depreciation (494,790) (416,005) Property and equipment, net $ 960,183 $ 565,221 Leases The Company has entered into operating leases primarily for real estate. These leases generally have terms which range from 1 year to 15 years, and often include one or more options to renew. These renewal terms can extend the lease term from 1 year to 20 years, and are included in the lease term when it is reasonably certain that the Company will exercise the option. These operating leases are included in "Other non-current assets" on the Company's Consolidated Balance Sheets, and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligations to make lease payments are included in "Accrued expenses and other liabilities" and "Other non-current liabilities" on the Company's Consolidated Balance Sheets. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company has entered into various short-term operating leases, primarily for marketing billboards, with an initial term of twelve months or less. These leases are not recorded on the Company's Consolidated Balance Sheets. All operating lease expense is recognized on a straight-line basis over the lease term. For the year ended December 31, 2020, the Company recognized approximately $441 million in total lease costs, which was comprised of $324 million in operating lease costs for right-of-use assets and $117 million in short-term lease costs related to short-term operating leases. For the year ended December 31, 2019, the Company recognized approximately $448 million in total lease costs, which was comprised of $218 million in operating lease costs for right-of-use assets and $230 million in short-term lease costs related to short-term operating leases. Prior to the adoption of ASU 2016-02 in the first quarter of 2019, the Company recognized minimum rental expense on a straight-line basis over the lease term. The Company used the date of initial possession to begin amortization, which is generally when the Company entered the space and began to make improvements in preparation for intended use. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial occupancy, the Company recorded minimum rental expenses on a straight-line basis over the terms of the leases in the Consolidated Statements of Operations. Rent expense associated with operating leases was $107 million for the year ended December 31, 2018. Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company has certain contracts for real estate and marketing which may contain lease and non-lease components which it has elected to treat as a single lease component. Information related to the Company's operating right-of-use assets and related operating lease liabilities were as follows: Year ended December 31, 2020 2019 (in thousands) Cash paid for operating lease liabilities $ 259,559 $ 192,084 Right-of-use assets obtained in exchange for new operating lease obligations (1) 729,942 1,672,462 (1) Balance as of December 31, 2019 includes $743 million for operating leases existing on January 1, 2019. As of December 31, 2020 2019 (in thousands, except lease term and discount rate) Operating lease right-of-use assets, net $ 2,037,726 $ 1,532,285 Current operating lease liabilities $ 256,222 $ 190,622 Non-current operating lease liabilities 1,945,631 1,422,612 Total operating lease liabilities $ 2,201,853 $ 1,613,234 Weighted-average remaining lease term 8.9 years 8.8 years Weighted-average discount rate 3.6 % 5.0 % Maturities of operating lease liabilities as of December 31, 2020 were as follows (in thousands): Due in 12 month period ended December 31, 2021 $ 320,245 2022 312,154 2023 300,014 2024 279,037 2025 258,348 Thereafter 1,100,115 2,569,913 Less imputed interest (368,060) Total operating lease liabilities 2,201,853 Current operating lease liabilities 256,222 Non-current operating lease liabilities 1,945,631 Total operating lease liabilities $ 2,201,853 The Company has additional operating leases for real estate of $256 million which have not commenced as of December 31, 2020, and as such, have not been recognized on the Company's Consolidated Balance Sheets. These operating leases are expected to commence in 2021 with lease terms between 1 year and 15 years. Other Current Assets Other current assets consisted of the following: As of December 31, December 31, (in thousands) Trade receivables $ 610,819 $ 454,399 Prepaid expenses 203,042 180,999 Other 742,169 524,669 Total other current assets $ 1,556,030 $ 1,160,067 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of December 31, 2020, the Company had aggregate outstanding notes of $16,309 million, net of $107 million of issuance costs, with varying maturities (the "Notes"). Of the outstanding balance, $500 million, net of issuance costs, is classified as short-term debt on the Consolidated Balance Sheets. As of December 31, 2019, the Company had aggregate outstanding long-term notes of $14,759 million, net of $114 million of issuance costs. Each of the Notes were issued at par and are senior unsecured obligations of the Company. Interest is payable semi-annually at fixed rates. A portion of the outstanding Notes is denominated in foreign currency (comprised of €5,170 million) and is remeasured into U.S. dollars at each balance sheet date (with remeasurement loss totaling $533 million for the year ended December 31, 2020). The following table provides a summary of the Company's outstanding debt and the fair values based on quoted market prices in less active markets as of December 31, 2020 and December 31, 2019: Principal Amount at Par Level 2 Fair Value as of December 31, December 31, Issuance Date Maturity December 31, December 31, (in millions) (in millions) 5.375% Senior Notes $ 500 $ 500 February 2013 February 2021 $ 502 $ 518 5.500% Senior Notes 700 700 February 2015 February 2022 735 744 5.750% Senior Notes 400 400 February 2014 March 2024 449 444 5.875% Senior Notes 800 800 February 2015 February 2025 921 896 3.000% Senior Notes (1) 574 — April 2020 June 2025 616 — 3.625% Senior Notes 500 — April 2020 June 2025 535 — 4.375% Senior Notes 1,000 1,000 October 2016 November 2026 1,110 1,026 3.625% Senior Notes (1) 1,588 1,459 May 2017 May 2027 1,776 1,565 4.875% Senior Notes 1,600 1,600 October 2017 April 2028 1,807 1,670 5.875% Senior Notes 1,900 1,900 April 2018 November 2028 2,280 2,111 4.625% Senior Notes (1) 1,344 1,234 October 2018 May 2029 1,630 1,378 6.375% Senior Notes 800 800 October 2018 May 2029 995 916 3.875% Senior Notes (1) 1,466 1,346 April 2019 November 2029 1,700 1,429 5.375% Senior Notes 900 900 April 2019 November 2029 1,061 960 3.625% Senior Notes (1) 1,344 1,234 October 2019 June 2030 1,533 1,273 4.875% Senior Notes 1,000 1,000 October 2019 June 2030 1,155 1,019 $ 16,416 $ 14,873 $ 18,805 $ 15,949 (1) The following Senior Notes have a principal amount denominated in euro: 3.000% Senior Notes for €470 million, 3.625% Senior Notes for €1,300 million, 4.625% Senior Notes for €1,100 million, 3.875% Senior Notes for €1,200 million, and 3.625% Senior Notes for €1,100 million. The expected timing of principal and interest payments for these Notes are as follows: As of December 31, December 31, 2019 (in thousands) Less than one year $ 1,264,020 $ 736,969 Due after one year and through three years 2,136,997 2,581,471 Due after three years and through five years 3,614,906 1,705,201 Due after five years 14,841,164 15,699,800 Total debt obligations $ 21,857,087 $ 20,723,441 Each of the Notes are repayable in whole or in part upon the occurrence of a change of control, at the option of the holders, at a purchase price in cash equal to 101% of the principal plus accrued interest. The Company may redeem the Notes prior to maturity in whole or in part at an amount equal to the principal amount thereof plus accrued and unpaid interest and an applicable premium. The Notes include, among other terms and conditions, limitations on the Company's ability to create, incur or allow certain liens; enter into sale and lease-back transactions; create, assume, incur or guarantee additional indebtedness of certain of the Company's subsidiaries; and consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's and its subsidiaries assets, to another person. As of December 31, 2020 and December 31, 2019, the Company was in compliance with all related covenants. Revolving Credit Facility As of December 31, 2020, the Company has a $750 million unsecured revolving credit facility (“Revolving Credit Agreement”), which matures on March 29, 2024. Revolving loans may be borrowed, repaid and reborrowed until March 29, 2024, at which time all amounts borrowed must be repaid. The Company may use the proceeds of future borrowings under the Revolving Credit Agreement for working capital and general corporate purposes. As of December 31, 2020, no amounts have been borrowed under the Revolving Credit Agreement. The borrowings under the Revolving Credit Agreement bear interest, at the Company’s option, of either (i) a floating rate equal to a base rate (the “Alternate Base Rate”) or (ii) a rate equal to an adjusted London interbank offered rate (the “Adjusted LIBO Rate”), plus a margin of 0.75%. The Alternate Base Rate is defined as the greatest of (A) the rate of interest published by the Wall Street Journal, from time to time, as the prime rate, (B) the federal funds rate, plus 0.500% and (C) the Adjusted LIBO Rate for a one-month interest period, plus 1.00%. The Adjusted LIBO Rate is defined as the London interbank offered rate for deposits in U.S. dollars, for the relevant interest period, adjusted for statutory reserve requirements, but in no event shall the Adjusted LIBO Rate be less than 0.00% per annum. Regulatory authorities that oversee financial markets have announced that after the end of 2021, they would no longer compel banks currently reporting information used to set the LIBO Rate to continue to make rate submissions. As a result, it is possible that beginning in 2022, the LIBO Rate will no longer be available as a reference rate. Under the terms of the Company's Revolving Credit Agreement, in the event of the discontinuance of the LIBO Rate, a mutually agreed-upon alternate benchmark rate will be established to replace the LIBO Rate. The Company and Lenders shall in good faith establish an alternate benchmark rate which places the Lenders and the Company in the same economic position that existed immediately prior to the discontinuation of the LIBO Rate. The Company does not anticipate that the discontinuance of the LIBO Rate will materially impact its liquidity or financial position. The Company is also obligated to pay a commitment fee on the undrawn amounts of the Revolving Credit Agreement at an annual rate of 0.10%. The Revolving Credit Agreement requires the Company to comply with certain covenants, including covenants that limit or restrict the ability of the Company’s subsidiaries to incur debt and limit or restrict the ability of the Company and its subsidiaries to grant liens and enter into sale and leaseback transactions; and, in the case of the Company or a guarantor, merge, consolidate, liquidate, dissolve or sell, transfer, lease or otherwise dispose of all or substantially all of the assets of the Company and its subsidiaries, taken as a whole. As of December 31, 2020 and December 31, 2019, the Company was in compliance with all related covenants. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Content At December 31, 2020, the Company had $19.2 billion of obligations comprised of $4.4 billion included in "Current content liabilities" and $2.6 billion of "Non-current content liabilities" on the Consolidated Balance Sheets and $12.2 billion of obligations that are not reflected on the Consolidated Balance Sheets as they did not yet meet the criteria for asset recognition. At December 31, 2019, the Company had $19.5 billion of obligations comprised of $4.4 billion included in "Current content liabilities" and $3.3 billion of "Non-current content liabilities" on the Consolidated Balance Sheets and $11.8 billion of obligations that are not reflected on the Consolidated Balance Sheets as they did not yet meet the criteria for asset recognition. The expected timing of payments for these content obligations is as follows: As of December 31, 2020 2019 (in thousands) Less than one year $ 8,980,868 $ 8,477,367 Due after one year and through 3 years 7,819,563 8,352,731 Due after 3 years and through 5 years 1,973,091 2,041,340 Due after 5 years 445,308 618,644 Total content obligations $ 19,218,830 $ 19,490,082 Content obligations include amounts related to the acquisition, licensing and production of content. Obligations that are in non-U.S. dollar currencies are translated to the U.S. dollar at period end rates. An obligation for the production of content includes non-cancelable commitments under creative talent and employment agreements as well as other production related commitments. An obligation for the acquisition and licensing of content is incurred at the time the Company enters into an agreement to obtain future titles. Once a title becomes available, a content liability is recorded on the Consolidated Balance Sheets. Certain agreements include the obligation to license rights for unknown future titles, the ultimate quantity and/or fees for which are not yet determinable as of the reporting date. Traditional film output deals, or certain TV series license agreements where the number of seasons to be aired is unknown, are examples of such license agreements. The Company does not include any estimated obligation for these future titles beyond the known minimum amount. However, the unknown obligations are expected to be significant. Legal Proceedings From time to time, in the normal course of its operations, the Company is subject to litigation matters and claims, including claims relating to employee relations, business practices and patent infringement. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict and the Company's view of these matters may change in the future as the litigation and events related thereto unfold. The Company expenses legal fees as incurred. The Company records a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. An unfavorable outcome to any legal matter, if material, could have an adverse effect on the Company's operations or its financial position, liquidity or results of operations. The Company is involved in litigation matters not listed herein but does not consider the matters to be material either individually or in the aggregate at this time. The Company's view of the matters not listed may change in the future as the litigation and events related thereto unfold. |
Guarantees_Indemnification Obli
Guarantees—Indemnification Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Guarantees [Abstract] | |
Guarantees—Indemnification Obligations | Guarantees—Indemnification Obligations In the ordinary course of business, the Company has entered into contractual arrangements under which it has agreed to provide indemnification of varying scope and terms to business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements and out of intellectual property infringement claims made by third parties. In these circumstances, payment may be conditional on the other party making a claim pursuant to the procedures specified in the particular contract. The Company’s obligations under these agreements may be limited in terms of time or amount, and in some instances, the Company may have recourse against third parties for certain payments. In addition, the Company has entered into indemnification agreements with its directors and certain of its officers that will require it, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The terms of such obligations vary. It is not possible to make a reasonable estimate of the maximum potential amount of future payments under these or similar agreements due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved in each particular agreement. No amount has been accrued in the accompanying consolidated financial statements with respect to these indemnification guarantees. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Voting Rights The holders of each share of common stock shall be entitled to one vote per share on all matters to be voted upon by the Company’s stockholders. Stock Option Plan On June 4, 2020, the Company's stockholders approved the 2020 Stock Plan, which was adopted by the Company's Board of Directors on March 4, 2020 subject to stockholder approval. The 2020 Stock Plan is the successor to the 2011 Stock Plan. The 2020 Stock Plan provides for the grant of incentive stock options to employees and for the grant of non-statutory stock options, stock appreciation rights, restricted stock and restricted stock units to employees, directors and consultants. The 2020 Stock Plan authorized 17,500,000 new shares to be available for award grants. As of the date the 2020 Stock Plan was adopted by the Company's Board of Directors, 5,530,106 shares were available to be granted under the 2011 Stock Plan. These shares are available for award grants under the 2020 Stock Plan. A summary of the activities related to the Company’s stock option plans is as follows: Shares Available Options Outstanding Number of Weighted- Average Exercise Price 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 Granted (2,588,380) 2,588,380 320.66 Exercised — (2,208,052) 32.88 Expired — (280) 6.74 Balances as of December 31, 2019 6,111,561 20,859,326 $ 124.28 New Shares Authorized 17,500,000 — — Granted (1,909,476) 1,909,476 432.34 Exercised — (4,088,612) 58.35 Expired — (3,380) 27.54 Balances as of December 31, 2020 21,702,085 18,676,810 $ 170.23 Vested and exercisable at December 31, 2020 18,676,810 $ 170.23 The aggregate intrinsic value of the Company's outstanding stock options as of December 31, 2020 was $6,922 million and represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of 2020 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last trading day of 2020. This amount changes based on the fair market value of the Company’s common stock. Total intrinsic value of options exercised for the years ended December 31, 2020, 2019 and 2018 was $1,596 million, $666 million and $863 million, respectively. The weighted-average remaining contractual term of the Company's outstanding stock options as of December 31, 2020 included in the table above was 5.55 years. Cash received from option exercises for the years ended December 31, 2020, 2019 and 2018 was $235 million, $72 million and $125 million, respectively. Stock-Based Compensation Stock options granted are exercisable for the full ten Year Ended December 31, 2020 2019 2018 Dividend yield — % — % — % Expected volatility 37% - 45% 37% - 41% 40% - 42% Risk-free interest rate 0.67% - 1.71% 1.74% - 2.74% 2.61% - 3.09% Suboptimal exercise factor 3.34 - 3.67 3.07 - 3.23 2.80 - 3.01 Valuation data: Weighted-average fair value (per share) $ 217.42 $ 156.60 $ 157.19 Total stock-based compensation expense (in thousands) 415,180 405,376 320,657 Total income tax impact on provision (in thousands) 91,718 90,856 67,575 The Company considers several factors in determining the suboptimal exercise factor, including the historical and estimated option exercise behavior. The Company calculates expected volatility based solely on implied volatility. The Company believes that implied volatility of publicly traded options in its common stock is more reflective of market conditions, and given consistently high trade volumes of the options, can reasonably be expected to be a better indicator of expected volatility than historical volatility of its common stock. In valuing shares issued under the Company’s employee stock option plans, the Company bases the risk-free interest rate on U.S. Treasury zero-coupon issues with terms similar to the contractual term of the options. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option valuation model. The Company does not use a post-vesting termination rate as options are fully vested upon grant date. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before provision for income taxes was as follows: Year Ended December 31, 2020 2019 2018 (in thousands) United States $ 2,789,064 $ 1,719,326 $ 845,402 Foreign 410,285 342,905 381,056 Income before income taxes $ 3,199,349 $ 2,062,231 $ 1,226,458 The components of provision for income taxes for all periods presented were as follows: Year Ended December 31, 2020 2019 2018 (in thousands) Current tax provision: Federal $ 24,221 $ 21,498 $ (22,176) State 65,821 45,228 (10,234) Foreign 277,846 223,328 133,146 Total current 367,888 290,054 100,736 Deferred tax provision: Federal (57,765) (28,003) (37,396) State 164,685 (54,507) (52,391) Foreign (36,854) (12,229) 4,267 Total deferred 70,066 (94,739) (85,520) Provision for income taxes $ 437,954 $ 195,315 $ 15,216 As of December 31, 2020, the Company had a California research and development ("R&D") credit carryforward of $250 million which can be carried forward indefinitely. On June 29, 2020, California enacted legislative changes that impose an annual cap of $5 million on the amount of business incentive tax credits we can utilize in California effective for tax years 2020 through 2022. As a result, we evaluated the Company's ability to realize the California R&D credit, the Company considered all available positive and negative evidence, including operating results, ongoing tax planning, and forecasts of future taxable income and determined it is more likely than not that the pre-2020 credits and a portion of the current year R&D credit would not be realized. In the twelve months ended December 31, 2020, the Company has recorded a valuation allowance of $250 million. The Company will monitor its business strategies, weighing positive and negative evidence in assessing its realization of this asset in the future and in the event there is a need to release the valuation allowance, a tax benefit will be recorded. A reconciliation of the provision for income taxes, with the amount computed by applying the statutory Federal income tax rate to income before income taxes is as follows: Year Ended December 31, 2020 2019 2018 (in thousands) Expected tax expense at U.S. Federal statutory rates $ 671,864 $ 433,059 $ 257,556 State income taxes, net of Federal income tax effect 65,808 47,909 33,611 Foreign earnings at other than U.S. rates 12,212 56,969 63,519 Federal and California R&D tax credits (113,882) (134,523) (140,749) Valuation allowance on California R&D tax credits 183,283 — — Excess tax benefits on stock-based compensation (339,436) (148,693) (191,323) Impact of the Tax Cuts and Jobs Act of 2017 Rate Change / Transition Tax — — (71,516) Tax effects of the Tax Cuts and Jobs Act (87,194) (127,534) 43,099 Global corporate structure simplification — 35,939 — Nondeductible Officers Compensation 30,351 24,111 14,377 Other 14,948 8,078 6,642 Provision for income taxes $ 437,954 $ 195,315 $ 15,216 Effective Tax Rate 14 % 9 % 1 % The components of deferred tax assets and liabilities were as follows: As of December 31, 2020 2019 (in thousands) Deferred tax assets: Stock-based compensation $ 296,646 $ 258,376 Federal and California tax R&D credits 513,413 408,715 Foreign tax credits — 137,818 Accruals and reserves 74,239 42,450 Operating leases 436,838 349,208 Foreign Net Operating Losses 29,894 411 Unrealized Gain/Loss 114,884 5,477 Other 2,543 622 Gross deferred tax assets 1,468,457 1,203,077 Depreciation & amortization (229,142) (80,921) Operating leases (400,380) (329,168) Gross deferred tax liabilities (629,522) (410,089) Valuation allowance (249,844) (134,782) Net deferred tax assets $ 589,091 $ 658,206 All deferred tax assets are classified as “Other non-current assets” on the Consolidated Balance Sheets as of December 31, 2020 and December 31, 2019. In evaluating its ability to realize the net deferred tax assets, the Company considered all available positive and negative evidence, including its past operating results and the forecast of future market growth, forecasted earnings, future taxable income, and prudent and feasible tax planning strategies. As of December 31, 2020, the valuation allowance of $250 million was related to the California R&D credits that the Company does not expect to realize. As of December 31, 2020, the Company's Federal R&D tax credit and state tax credit carryforwards for tax return purposes were $317 million, and $365 million, respectively. The Federal R&D tax credit carryforwards expire through 2040. State tax credit carryforwards can be carried forward indefinitely. In the fourth quarter of 2020, the Company determined that the likelihood of utilizing its non-U.S. foreign tax credits of $135 million for which there was a valuation allowance of $135 million was remote given its recent global corporate simplification. As such, the Company has written off the deferred tax asset against the valuation allowance and will no longer disclose these amounts. The unrecognized tax benefits that are not expected to result in payment or receipt of cash within one year are classified as “Other non-current liabilities” and a reduction of deferred tax assets which is classified as "Other non-current assets" in the Consolidated Balance Sheets. As of December 31, 2020, the total amount of gross unrecognized tax benefits was $140 million, of which $86 million, if recognized, would favorably impact the Company’s effective tax rate. As of December 31, 2019, the total amount of gross unrecognized tax benefits was $67 million, of which $57 million, if recognized, would favorably impact the Company’s effective tax rate. The aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands): 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 Increases related to tax positions taken during prior periods 11,943 Decreases related to tax positions taken during prior periods (3,697) Increases related to tax positions taken during the current period 65,110 Decreases related to expiration of statute of limitations — Balances as of December 31, 2020 $ 140,124 The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes and in “Other non-current liabilities” in the Consolidated Balance Sheets. Interest and penalties included in the Company's provision for income taxes were not material in all the periods presented. The Company files U.S. Federal, state and foreign tax returns. The Company is currently under examination by the IRS for 2016 through 2018 and is subject to examination for 2019. The 2015 through 2019 state tax returns are subject to examination by various state tax authorities. The Company is also currently under examination in the UK for 2018 and 2019. The company has no other significant foreign jurisdiction audits underway. The years 2014 through 2019 generally remain subject to examination by foreign tax authorities. Given the potential outcome of the current examinations as well as the impact of the current examinations on the potential expiration of the statute of limitations, it is reasonably possible that the balance of unrecognized tax benefits could significantly change within the next twelve months. However, an estimate of the range of reasonably possible adjustments cannot be made at this time. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company maintains a 401(k) savings plan covering substantially all of its employees. Eligible employees may contribute up to 80% of their annual salary through payroll deductions, but not more than the statutory limits set by the Internal Revenue Service. The Company matches employee contributions at the discretion of the Board. During 2020, 2019 and 2018, the Company’s matching contributions totaled $69 million, $47 million and $27 million, respectively. Multiemployer Benefit Plans The Company contributes to various multiemployer defined pension plans under the terms of collective bargaining agreements that cover our union-represented employees. The risks of participating in multiemployer pension plans are different from single-employer plans such that (i) contributions made by the Company to the multiemployer pension plans may be used to provide benefits to employees of other participating employers; (ii) if the Company chooses to stop participating in the multiemployer pension plans, it may be required to pay those plans an amount based on the underfunded status of the plan; and (iii) if the Company stops contributing to the multiemployer pension plan, the unfunded obligations of the plan may become the obligation of the remaining participating employers. The Company also contributes to various other multiemployer benefit plans that provide health and welfare benefits to both active and retired participants. The Company does not participate in any multiemployer benefit plans that are individually significant to the Company. The following table summarizes the Company's contributions to multiemployer pension and health plans for the years ended December 31, 2020, 2019 and 2018, respectively: Year Ended December 31, 2020 2019 2018 (in thousands) Pension benefits $ 78,060 $ 89,703 $ 32,389 Health benefits 52,322 44,351 26,898 Total contributions $ 130,382 $ 134,054 $ 59,287 |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information The Company operates as one operating segment. The Company's chief operating decision maker ("CODM") is its co-chief executive officers, who review financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. On July 13, 2020, Ted Sarandos was appointed as co-Chief Executive Officer of the Company and serves as Chief Content Officer with Reed Hastings, the Company’s President, co-Chief Executive Officer, and Chairman of the Board. The Company determined that both Mr. Sarandos and Mr. Hastings are its CODM and that there have been no changes to the Company's one operating segment as the Company's financial results continue to be evaluated on a consolidated basis by its CODM. Total U.S. revenues were $10.8 billion, $9.5 billion and $8.0 billion for the years ended December 31, 2020, 2019 and 2018, respectively. See Note 2 Revenue Recognition for additional information about streaming revenue by region. The Company's long-lived tangible assets, as well as the Company's operating lease right-of-use assets recognized on the Consolidated Balance Sheets were located as follows: As of December 31, 2020 2019 (in thousands) United States $ 2,224,891 $ 1,503,459 International 773,018 594,047 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) December 31, September 30, June 30, March 31, (in thousands, except for per share data) 2020 Total revenues $ 6,644,442 $ 6,435,637 $ 6,148,286 $ 5,767,691 Gross profit 2,479,282 2,567,886 2,504,579 2,167,990 Net income 542,156 789,976 720,196 709,067 Earnings per share: Basic $ 1.23 $ 1.79 $ 1.63 $ 1.61 Diluted 1.19 1.74 1.59 1.57 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 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThe consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions include the content asset amortization policy and the recognition and measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results may differ from these estimates. |
Recently adopted accounting pronouncements | Recently adopted accounting pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326) , in order to improve financial reporting of expected credit losses on financial instruments and other commitments to extend credit. ASU 2016-13 requires that an entity measure and recognize expected credit losses for financial assets held at amortized cost and replaces the incurred loss impairment methodology in prior GAAP with a methodology that requires consideration of a broader range of information to estimate credit losses. The Company adopted ASU 2016-13 in the first quarter of 2020 and the impact of the adoption was not material to the Company's consolidated financial statements as credit losses are not expected to be significant based on historical collection trends, the financial condition of payment partners, and external market factors. Recently issued accounting pronouncements not yet adopted In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) . ASU 2019-12 removes certain exceptions for performing intraperiod tax allocations, recognizing deferred taxes for investments, and calculating income taxes in interim periods. The guidance also simplifies the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill, and the effect of enacted changes in tax laws or rates in interim periods. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. While the Company is continuing to assess the potential impacts of ASU 2019-12, it does not expect ASU 2019-12 to have a material effect, if any, on its financial statements. |
Cash Equivalents | Cash EquivalentsThe Company considers investments in instruments purchased with an original maturity of 90 days or less to be cash equivalents. The Company also classifies amounts in transit from payment processors for customer credit card and debit card transactions as cash equivalents. |
Content | Content The Company acquires, licenses and produces content, including original programming, in order to offer members unlimited viewing of video entertainment. The content licenses are for a fixed fee and specific windows of availability. Payment terms for certain content licenses and the production of content require more upfront cash payments relative to the amortization expense. Payments for content, including additions to content assets and the changes in related liabilities, are classified within "Net cash provided by (used in) operating activities" on the Consolidated Statements of Cash Flows. The Company recognizes content assets (licensed and produced) as “Content assets, net” on the Consolidated Balance Sheets. For licensed content, the Company capitalizes the fee per title and records a corresponding liability at the gross amount of the liability when the license period begins, the cost of the title is known and the title is accepted and available for streaming. For produced content, the Company capitalizes costs associated with the production, including development costs, direct costs and production overhead. Participations and residuals are expensed in line with the amortization of production costs. Based on factors including historical and estimated viewing patterns, the Company amortizes the content assets (licensed and produced) in “Cost of revenues” on the Consolidated Statements of Operations over the shorter of each title's contractual window of availability or estimated period of use or ten years, beginning with the month of first availability. The amortization is on an accelerated basis, as the Company typically expects more upfront viewing, for instance due to additional merchandising and marketing efforts and film amortization is more accelerated than TV series amortization. On average, over 90% of a licensed or produced content asset is expected to be amortized within four years after its month of first availability. The Company reviews factors impacting the amortization of the content assets on an ongoing basis. The Company's estimates related to these factors require considerable management judgment. The Company's business model is subscription based as opposed to a model generating revenues at a specific title level. Content assets (licensed and produced) are predominantly monetized as a group and therefore are reviewed in aggregate at a group level when an event or change in circumstances indicates a change in the expected usefulness of the content or that the fair value may be less than unamortized cost. To date, the Company has not identified any such event or changes in circumstances. If such changes are identified in the future, these aggregated content assets will be stated at the lower of unamortized cost or fair value. In addition, unamortized costs for assets that have been, or are expected to be, abandoned are written off. |
Property and Equipment | Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the shorter of the estimated useful lives of the respective assets, generally up to 30 years, or the expected lease term for leasehold improvements, if applicable. |
Trade Receivables | Trade ReceivablesTrade receivables consist primarily of amounts related to members and payment partners that collect membership fees on the Company's behalf. The Company evaluates the need for an allowance for doubtful accounts based on historical collection trends, the financial condition of its payment partners, and external market factors. |
Marketing | MarketingMarketing expenses consist primarily of advertising expenses and certain payments made to the Company’s partners, including consumer electronics ("CE") manufacturers, multichannel video programming distributors ("MVPDs"), mobile operators and internet service providers ("ISPs"). Advertising expenses include promotional activities such as digital and television advertising. Advertising costs are expensed as incurred. |
Research and Development | Research and DevelopmentResearch and development expenses consist of payroll and related costs incurred in making improvements to our service offerings. |
Income Taxes | Income Taxes The Company records a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Deferred income taxes are recognized by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as net operating loss and tax credit carryforwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance for any tax benefits for which future realization is uncertain. |
Foreign Currency | Foreign Currency The functional currency for the Company's subsidiaries is determined based on the primary economic environment in which the subsidiary operates. The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenues and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in cumulative translation adjustment included in "Accumulated other comprehensive income (loss)" in Stockholders’ equity on the Consolidated Balance Sheets. |
Stock-Based Compensation | Stock-Based CompensationThe Company grants fully vested non-qualified stock options to its employees on a monthly basis. As a result of immediate vesting, stock-based compensation expense is fully recognized on the grant date, and no estimate is required for post-vesting option forfeitures. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Streaming Revenue, Paid net Membership Additions, and Ending Paid Memberships by Region | The following tables summarize streaming revenues, paid net membership additions, and ending paid memberships by region for the years December 31, 2020, 2019 and 2018, respectively: United States and Canada (UCAN) As of/ Year Ended December 31, 2020 2019 2018 (in thousands) Revenues $ 11,455,396 $ 10,051,208 $ 8,281,532 Paid net membership additions 6,274 2,905 6,335 Paid memberships at end of period 73,936 67,662 64,757 Europe, Middle East, and Africa (EMEA) As of/ Year Ended December 31, 2020 2019 2018 (in thousands) Revenues $ 7,772,252 $ 5,543,067 $ 3,963,707 Paid net membership additions 14,920 13,960 11,814 Paid memberships at end of period 66,698 51,778 37,818 Latin America (LATAM) As of/ Year Ended December 31, 2020 2019 2018 (in thousands) Revenues $ 3,156,727 $ 2,795,434 $ 2,237,697 Paid net membership additions 6,120 5,340 6,360 Paid memberships at end of period 37,537 31,417 26,077 Asia-Pacific (APAC) As of/ Year Ended December 31, 2020 2019 2018 (in thousands) Revenues $ 2,372,300 $ 1,469,521 $ 945,816 Paid net membership additions 9,259 5,626 4,106 Paid memberships at end of period 25,492 16,233 10,607 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | The computation of earnings per share is as follows: Year ended December 31, 2020 2019 2018 (in thousands, except per share data) Basic earnings per share: Net income $ 2,761,395 $ 1,866,916 $ 1,211,242 Shares used in computation: Weighted-average common shares outstanding 440,922 437,799 435,374 Basic earnings per share $ 6.26 $ 4.26 $ 2.78 Diluted earnings per share: Net income $ 2,761,395 $ 1,866,916 $ 1,211,242 Shares used in computation: Weighted-average common shares outstanding 440,922 437,799 435,374 Employee stock options 13,286 13,966 15,870 Weighted-average number of shares 454,208 451,765 451,244 Diluted earnings per share $ 6.08 $ 4.13 $ 2.68 |
Summary of Potential Common Shares Excluded from Diluted Calculation | The following table summarizes the potential common shares excluded from the diluted calculation: Year ended December 31, 2020 2019 2018 (in thousands) Employee stock options 484 1,588 330 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Short-Term Investments And Fair Value Measurement [Abstract] | |
Schedule of Cash and Cash Equivalents | The following tables summarize the Company's cash, cash equivalents and restricted cash as of December 31, 2020 and 2019: As of December 31, 2020 Cash and cash equivalents Other Current Assets Non-current Assets Total (in thousands) Cash $ 3,331,860 $ 1,783 $ 31,284 $ 3,364,927 Level 1 securities: Money market funds 4,573,690 — 253 4,573,943 Level 2 securities: Foreign Time Deposits 300,000 — 300,000 $ 8,205,550 $ 1,783 $ 31,537 $ 8,238,870 As of December 31, 2019 Cash and cash equivalents Other Current Assets Non-current Assets Total (in thousands) Cash $ 3,103,525 $ 1,863 $ 22,161 $ 3,127,549 Level 1 securities: Money market funds 1,614,912 — 1,325 1,616,237 Level 2 securities: Foreign Time Deposits 300,000 — — 300,000 $ 5,018,437 $ 1,863 $ 23,486 $ 5,043,786 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Components Disclosure [Abstract] | |
Content Assets | Content assets consisted of the following: As of December 31, 2020 2019 (in thousands) Licensed content, net $ 13,747,607 $ 14,703,352 Produced content, net Released, less amortization 5,809,681 4,382,685 In production 4,827,455 4,750,664 In development and pre-production 999,207 667,866 11,636,343 9,801,215 Content assets, net $ 25,383,950 $ 24,504,567 |
Schedule of Amortization of Streaming Content Assets | The following table represents the amortization of content assets: Year ended December 31, 2020 2019 2018 (in thousands) Licensed content $ 7,544,631 $ 7,242,799 $ 6,511,689 Produced content 3,262,281 1,973,448 1,020,399 Total $ 10,806,912 $ 9,216,247 $ 7,532,088 |
Property and Equipment, Net | Property and equipment and accumulated depreciation consisted of the following: As of December 31, Estimated Useful Lives (in Years) 2020 2019 (in thousands) Land $ 50,700 $ 6,125 Buildings 42,717 33,141 30 years Leasehold improvements 524,537 354,999 Over life of lease Furniture and fixtures 110,185 87,465 3-15 years Information technology 283,014 243,565 3 years Corporate aircraft 110,629 108,995 8 years Machinery and equipment 34,633 46,415 3-5 years Capital work-in-progress 298,558 100,521 Property and equipment, gross 1,454,973 981,226 Less: Accumulated depreciation (494,790) (416,005) Property and equipment, net $ 960,183 $ 565,221 |
Information on Right-of-Use Assets and Lease Liabilities | Information related to the Company's operating right-of-use assets and related operating lease liabilities were as follows: Year ended December 31, 2020 2019 (in thousands) Cash paid for operating lease liabilities $ 259,559 $ 192,084 Right-of-use assets obtained in exchange for new operating lease obligations (1) 729,942 1,672,462 (1) Balance as of December 31, 2019 includes $743 million for operating leases existing on January 1, 2019. As of December 31, 2020 2019 (in thousands, except lease term and discount rate) Operating lease right-of-use assets, net $ 2,037,726 $ 1,532,285 Current operating lease liabilities $ 256,222 $ 190,622 Non-current operating lease liabilities 1,945,631 1,422,612 Total operating lease liabilities $ 2,201,853 $ 1,613,234 Weighted-average remaining lease term 8.9 years 8.8 years Weighted-average discount rate 3.6 % 5.0 % |
Maturities of Lease Liabilities | Maturities of operating lease liabilities as of December 31, 2020 were as follows (in thousands): Due in 12 month period ended December 31, 2021 $ 320,245 2022 312,154 2023 300,014 2024 279,037 2025 258,348 Thereafter 1,100,115 2,569,913 Less imputed interest (368,060) Total operating lease liabilities 2,201,853 Current operating lease liabilities 256,222 Non-current operating lease liabilities 1,945,631 Total operating lease liabilities $ 2,201,853 |
Other Current Assets | Other current assets consisted of the following: As of December 31, December 31, (in thousands) Trade receivables $ 610,819 $ 454,399 Prepaid expenses 203,042 180,999 Other 742,169 524,669 Total other current assets $ 1,556,030 $ 1,160,067 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table provides a summary of the Company's outstanding debt and the fair values based on quoted market prices in less active markets as of December 31, 2020 and December 31, 2019: Principal Amount at Par Level 2 Fair Value as of December 31, December 31, Issuance Date Maturity December 31, December 31, (in millions) (in millions) 5.375% Senior Notes $ 500 $ 500 February 2013 February 2021 $ 502 $ 518 5.500% Senior Notes 700 700 February 2015 February 2022 735 744 5.750% Senior Notes 400 400 February 2014 March 2024 449 444 5.875% Senior Notes 800 800 February 2015 February 2025 921 896 3.000% Senior Notes (1) 574 — April 2020 June 2025 616 — 3.625% Senior Notes 500 — April 2020 June 2025 535 — 4.375% Senior Notes 1,000 1,000 October 2016 November 2026 1,110 1,026 3.625% Senior Notes (1) 1,588 1,459 May 2017 May 2027 1,776 1,565 4.875% Senior Notes 1,600 1,600 October 2017 April 2028 1,807 1,670 5.875% Senior Notes 1,900 1,900 April 2018 November 2028 2,280 2,111 4.625% Senior Notes (1) 1,344 1,234 October 2018 May 2029 1,630 1,378 6.375% Senior Notes 800 800 October 2018 May 2029 995 916 3.875% Senior Notes (1) 1,466 1,346 April 2019 November 2029 1,700 1,429 5.375% Senior Notes 900 900 April 2019 November 2029 1,061 960 3.625% Senior Notes (1) 1,344 1,234 October 2019 June 2030 1,533 1,273 4.875% Senior Notes 1,000 1,000 October 2019 June 2030 1,155 1,019 $ 16,416 $ 14,873 $ 18,805 $ 15,949 |
Schedule of Expected Timing of Principal and Interest Payments for the Notes | The expected timing of principal and interest payments for these Notes are as follows: As of December 31, December 31, 2019 (in thousands) Less than one year $ 1,264,020 $ 736,969 Due after one year and through three years 2,136,997 2,581,471 Due after three years and through five years 3,614,906 1,705,201 Due after five years 14,841,164 15,699,800 Total debt obligations $ 21,857,087 $ 20,723,441 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Expected Timing of Payments for Streaming Content Obligations | The expected timing of payments for these content obligations is as follows: As of December 31, 2020 2019 (in thousands) Less than one year $ 8,980,868 $ 8,477,367 Due after one year and through 3 years 7,819,563 8,352,731 Due after 3 years and through 5 years 1,973,091 2,041,340 Due after 5 years 445,308 618,644 Total content obligations $ 19,218,830 $ 19,490,082 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Summary of Activity Related to Stock Option Plans | A summary of the activities related to the Company’s stock option plans is as follows: Shares Available Options Outstanding Number of Weighted- Average Exercise Price 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 Granted (2,588,380) 2,588,380 320.66 Exercised — (2,208,052) 32.88 Expired — (280) 6.74 Balances as of December 31, 2019 6,111,561 20,859,326 $ 124.28 New Shares Authorized 17,500,000 — — Granted (1,909,476) 1,909,476 432.34 Exercised — (4,088,612) 58.35 Expired — (3,380) 27.54 Balances as of December 31, 2020 21,702,085 18,676,810 $ 170.23 Vested and exercisable at December 31, 2020 18,676,810 $ 170.23 |
Summary of Assumptions Used to Value Stock Option Grants Using Lattice-Binomial Model | The following table summarizes the assumptions used to value option grants using the lattice-binomial model and the valuation data: Year Ended December 31, 2020 2019 2018 Dividend yield — % — % — % Expected volatility 37% - 45% 37% - 41% 40% - 42% Risk-free interest rate 0.67% - 1.71% 1.74% - 2.74% 2.61% - 3.09% Suboptimal exercise factor 3.34 - 3.67 3.07 - 3.23 2.80 - 3.01 Valuation data: Weighted-average fair value (per share) $ 217.42 $ 156.60 $ 157.19 Total stock-based compensation expense (in thousands) 415,180 405,376 320,657 Total income tax impact on provision (in thousands) 91,718 90,856 67,575 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Taxes | Income before provision for income taxes was as follows: Year Ended December 31, 2020 2019 2018 (in thousands) United States $ 2,789,064 $ 1,719,326 $ 845,402 Foreign 410,285 342,905 381,056 Income before income taxes $ 3,199,349 $ 2,062,231 $ 1,226,458 |
Components of Provision for Income Taxes | The components of provision for income taxes for all periods presented were as follows: Year Ended December 31, 2020 2019 2018 (in thousands) Current tax provision: Federal $ 24,221 $ 21,498 $ (22,176) State 65,821 45,228 (10,234) Foreign 277,846 223,328 133,146 Total current 367,888 290,054 100,736 Deferred tax provision: Federal (57,765) (28,003) (37,396) State 164,685 (54,507) (52,391) Foreign (36,854) (12,229) 4,267 Total deferred 70,066 (94,739) (85,520) Provision for income taxes $ 437,954 $ 195,315 $ 15,216 |
Reconciliation of Provision for Income Taxes | A reconciliation of the provision for income taxes, with the amount computed by applying the statutory Federal income tax rate to income before income taxes is as follows: Year Ended December 31, 2020 2019 2018 (in thousands) Expected tax expense at U.S. Federal statutory rates $ 671,864 $ 433,059 $ 257,556 State income taxes, net of Federal income tax effect 65,808 47,909 33,611 Foreign earnings at other than U.S. rates 12,212 56,969 63,519 Federal and California R&D tax credits (113,882) (134,523) (140,749) Valuation allowance on California R&D tax credits 183,283 — — Excess tax benefits on stock-based compensation (339,436) (148,693) (191,323) Impact of the Tax Cuts and Jobs Act of 2017 Rate Change / Transition Tax — — (71,516) Tax effects of the Tax Cuts and Jobs Act (87,194) (127,534) 43,099 Global corporate structure simplification — 35,939 — Nondeductible Officers Compensation 30,351 24,111 14,377 Other 14,948 8,078 6,642 Provision for income taxes $ 437,954 $ 195,315 $ 15,216 Effective Tax Rate 14 % 9 % 1 % |
Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities were as follows: As of December 31, 2020 2019 (in thousands) Deferred tax assets: Stock-based compensation $ 296,646 $ 258,376 Federal and California tax R&D credits 513,413 408,715 Foreign tax credits — 137,818 Accruals and reserves 74,239 42,450 Operating leases 436,838 349,208 Foreign Net Operating Losses 29,894 411 Unrealized Gain/Loss 114,884 5,477 Other 2,543 622 Gross deferred tax assets 1,468,457 1,203,077 Depreciation & amortization (229,142) (80,921) Operating leases (400,380) (329,168) Gross deferred tax liabilities (629,522) (410,089) Valuation allowance (249,844) (134,782) Net deferred tax assets $ 589,091 $ 658,206 |
Summary of Changes in Unrecognized Tax Benefits | The aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands): 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 Increases related to tax positions taken during prior periods 11,943 Decreases related to tax positions taken during prior periods (3,697) Increases related to tax positions taken during the current period 65,110 Decreases related to expiration of statute of limitations — Balances as of December 31, 2020 $ 140,124 |
Employee Benefit Plan (Tables)
Employee Benefit Plan (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Company Contributions to Pension and Health Plans | The following table summarizes the Company's contributions to multiemployer pension and health plans for the years ended December 31, 2020, 2019 and 2018, respectively: Year Ended December 31, 2020 2019 2018 (in thousands) Pension benefits $ 78,060 $ 89,703 $ 32,389 Health benefits 52,322 44,351 26,898 Total contributions $ 130,382 $ 134,054 $ 59,287 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Long-lived Assets by Geographic Areas | The Company's long-lived tangible assets, as well as the Company's operating lease right-of-use assets recognized on the Consolidated Balance Sheets were located as follows: As of December 31, 2020 2019 (in thousands) United States $ 2,224,891 $ 1,503,459 International 773,018 594,047 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | December 31, September 30, June 30, March 31, (in thousands, except for per share data) 2020 Total revenues $ 6,644,442 $ 6,435,637 $ 6,148,286 $ 5,767,691 Gross profit 2,479,282 2,567,886 2,504,579 2,167,990 Net income 542,156 789,976 720,196 709,067 Earnings per share: Basic $ 1.23 $ 1.79 $ 1.63 $ 1.61 Diluted 1.19 1.74 1.59 1.57 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 |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands, member in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)membercountry | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Number of streaming members (over) | member | 204 | ||
Number of countries (over) | country | 190 | ||
Content assets amortization period cap | 10 years | ||
Average produced content asset amortization percentage (over) | 90.00% | ||
Average produced content asset amortization period | 4 years | ||
Advertising expense | $ 1,447,000 | $ 1,879,000 | $ 1,808,000 |
Research and development expense | 1,984,000 | 1,673,000 | 1,218,000 |
Foreign currency remeasurement gain (loss) | (533,278) | 45,576 | 73,953 |
Interest and Other Income (Expense) | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Foreign currency remeasurement gain (loss) | $ (660,000) | $ 7,000 | $ (1,000) |
Maximum | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment estimated useful life | 30 years |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 6,644,442 | $ 6,435,637 | $ 6,148,286 | $ 5,767,691 | $ 5,467,434 | $ 5,244,905 | $ 4,923,116 | $ 4,520,992 | $ 24,996,056 | $ 20,156,447 | $ 15,794,341 |
Deferred revenue | $ 1,117,992 | $ 924,745 | 1,117,992 | 924,745 | |||||||
Increase in deferred revenue | 193,247 | 163,846 | 142,277 | ||||||||
DVD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 200,000 | 300,000 | 400,000 | ||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 10,800,000 | $ 9,500,000 | $ 8,000,000 |
Revenue Recognition - Revenue a
Revenue Recognition - Revenue and Membership Information (Details) membership in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($)membership | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($)membership | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)membership | Dec. 31, 2019USD ($)membership | Dec. 31, 2018USD ($)membership | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ | $ 6,644,442 | $ 6,435,637 | $ 6,148,286 | $ 5,767,691 | $ 5,467,434 | $ 5,244,905 | $ 4,923,116 | $ 4,520,992 | $ 24,996,056 | $ 20,156,447 | $ 15,794,341 |
Streaming | United States and Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ | $ 11,455,396 | $ 10,051,208 | $ 8,281,532 | ||||||||
Paid net membership additions (in memberships) | 6,274 | 2,905 | 6,335 | ||||||||
Paid memberships at end of period (in memberships) | 73,936 | 67,662 | 73,936 | 67,662 | 64,757 | ||||||
Streaming | Europe, Middle East, and Africa | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ | $ 7,772,252 | $ 5,543,067 | $ 3,963,707 | ||||||||
Paid net membership additions (in memberships) | 14,920 | 13,960 | 11,814 | ||||||||
Paid memberships at end of period (in memberships) | 66,698 | 51,778 | 66,698 | 51,778 | 37,818 | ||||||
Streaming | Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ | $ 3,156,727 | $ 2,795,434 | $ 2,237,697 | ||||||||
Paid net membership additions (in memberships) | 6,120 | 5,340 | 6,360 | ||||||||
Paid memberships at end of period (in memberships) | 37,537 | 31,417 | 37,537 | 31,417 | 26,077 | ||||||
Streaming | Asia-Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ | $ 2,372,300 | $ 1,469,521 | $ 945,816 | ||||||||
Paid net membership additions (in memberships) | 9,259 | 5,626 | 4,106 | ||||||||
Paid memberships at end of period (in memberships) | 25,492 | 16,233 | 25,492 | 16,233 | 10,607 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic earnings per share: | |||||||||||
Net income | $ 542,156 | $ 789,976 | $ 720,196 | $ 709,067 | $ 586,970 | $ 665,244 | $ 270,650 | $ 344,052 | $ 2,761,395 | $ 1,866,916 | $ 1,211,242 |
Weighted-average common shares outstanding (in shares) | 440,922 | 437,799 | 435,374 | ||||||||
Basic earnings per share (in USD per share) | $ 1.23 | $ 1.79 | $ 1.63 | $ 1.61 | $ 1.34 | $ 1.52 | $ 0.62 | $ 0.79 | $ 6.26 | $ 4.26 | $ 2.78 |
Diluted earnings per share: | |||||||||||
Net income | $ 542,156 | $ 789,976 | $ 720,196 | $ 709,067 | $ 586,970 | $ 665,244 | $ 270,650 | $ 344,052 | $ 2,761,395 | $ 1,866,916 | $ 1,211,242 |
Shares used in computation: | |||||||||||
Weighted-average common shares outstanding (in shares) | 440,922 | 437,799 | 435,374 | ||||||||
Employee stock options (in shares) | 13,286 | 13,966 | 15,870 | ||||||||
Weighted-average number of shares (in shares) | 454,208 | 451,765 | 451,244 | ||||||||
Diluted earnings per share (in USD per share) | $ 1.19 | $ 1.74 | $ 1.59 | $ 1.57 | $ 1.30 | $ 1.47 | $ 0.60 | $ 0.76 | $ 6.08 | $ 4.13 | $ 2.68 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Employee stock options | 484 | 1,588 | 330 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Line Items] | ||||
Cash, cash equivalents and restricted cash | $ 8,238,870 | $ 5,043,786 | $ 3,812,041 | $ 2,822,795 |
Cash | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash, cash equivalents and restricted cash | 3,364,927 | 3,127,549 | ||
Level 1 securities | Money market funds | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash, cash equivalents and restricted cash | 4,573,943 | 1,616,237 | ||
Level 2 securities | Foreign Time Deposits | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash, cash equivalents and restricted cash | 300,000 | 300,000 | ||
Cash and cash equivalents | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash, cash equivalents and restricted cash | 8,205,550 | 5,018,437 | ||
Cash and cash equivalents | Cash | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash, cash equivalents and restricted cash | 3,331,860 | 3,103,525 | ||
Cash and cash equivalents | Level 1 securities | Money market funds | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash, cash equivalents and restricted cash | 4,573,690 | 1,614,912 | ||
Cash and cash equivalents | Level 2 securities | Foreign Time Deposits | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash, cash equivalents and restricted cash | 300,000 | 300,000 | ||
Other Current Assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash, cash equivalents and restricted cash | 1,783 | 1,863 | ||
Other Current Assets | Cash | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash, cash equivalents and restricted cash | 1,783 | 1,863 | ||
Other Current Assets | Level 1 securities | Money market funds | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash, cash equivalents and restricted cash | 0 | 0 | ||
Other Current Assets | Level 2 securities | Foreign Time Deposits | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash, cash equivalents and restricted cash | 0 | |||
Non-current Assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash, cash equivalents and restricted cash | 31,537 | 23,486 | ||
Non-current Assets | Cash | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash, cash equivalents and restricted cash | 31,284 | 22,161 | ||
Non-current Assets | Level 1 securities | Money market funds | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash, cash equivalents and restricted cash | 253 | 1,325 | ||
Non-current Assets | Level 2 securities | Foreign Time Deposits | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash, cash equivalents and restricted cash | $ 0 | $ 0 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Content Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Content assets, net | $ 25,383,950 | $ 24,504,567 | |
Amortization of content assets | 10,806,912 | 9,216,247 | $ 7,532,088 |
Licensed content, net | |||
Finite-Lived Intangible Assets [Line Items] | |||
Net content | 13,747,607 | 14,703,352 | |
Unamortized cost in year one | 5,637,000 | ||
Unamortized cost in year two | 3,494,000 | ||
Unamortized cost in year three | 2,134,000 | ||
Amortization of content assets | 7,544,631 | 7,242,799 | 6,511,689 |
Produced content, net | |||
Finite-Lived Intangible Assets [Line Items] | |||
Net content | 5,809,681 | 4,382,685 | |
In production | 4,827,455 | 4,750,664 | |
In development and pre-production | 999,207 | 667,866 | |
Content assets, net | 11,636,343 | 9,801,215 | |
Unamortized cost in year one | 2,183,000 | ||
Unamortized cost in year two | 1,629,000 | ||
Unamortized cost in year three | 1,092,000 | ||
Amortization of content assets | $ 3,262,281 | $ 1,973,448 | $ 1,020,399 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,454,973 | $ 981,226 |
Less: Accumulated depreciation | (494,790) | (416,005) |
Property and equipment, net | $ 960,183 | $ 565,221 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 30 years | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 50,700 | $ 6,125 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 42,717 | 33,141 |
Estimated Useful Lives | 30 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 524,537 | 354,999 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 110,185 | 87,465 |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 15 years | |
Information technology | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 283,014 | 243,565 |
Estimated Useful Lives | 3 years | |
Corporate aircraft | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 110,629 | 108,995 |
Estimated Useful Lives | 8 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 34,633 | 46,415 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Capital work-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 298,558 | $ 100,521 |
Balance Sheet Components - Leas
Balance Sheet Components - Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Lease Cost: | ||||
Lease costs | $ 441,000 | $ 448,000 | ||
Operating lease cost | 324,000 | 218,000 | ||
Short-term lease cost | 117,000 | 230,000 | ||
Rent expense | $ 107,000 | |||
Cash paid for operating lease liabilities | 259,559 | 192,084 | ||
Right-of-use assets obtained in exchange for new operating lease obligations | 729,942 | 1,672,462 | ||
Operating lease right-of-use assets, net | 2,037,726 | 1,532,285 | ||
Current operating lease liabilities | 256,222 | 190,622 | ||
Non-current operating lease liabilities | 1,945,631 | 1,422,612 | ||
Total operating lease liabilities | $ 2,201,853 | $ 1,613,234 | ||
Weighted-average remaining lease term | 8 years 10 months 24 days | 8 years 9 months 18 days | ||
Weighted-average discount rate | 3.60% | 5.00% | ||
Operating lease, liability, leases not commenced | $ 256,000 | |||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | ||
ASU 2016-02 | ||||
Lease Cost: | ||||
Operating lease right-of-use assets, net | $ 743,000 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term of contract | 1 year | |||
Lease renewal term | 1 year | |||
Lease Cost: | ||||
Lease not yet commenced, term of contract | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term of contract | 15 years | |||
Lease renewal term | 20 years | |||
Lease Cost: | ||||
Lease not yet commenced, term of contract | 15 years |
Balance Sheet Components - Le_2
Balance Sheet Components - Lease Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 320,245 | |
2022 | 312,154 | |
2023 | 300,014 | |
2024 | 279,037 | |
2025 | 258,348 | |
Thereafter | 1,100,115 | |
Total lease liabilities | 2,569,913 | |
Less imputed interest | (368,060) | |
Total operating lease liabilities | 2,201,853 | $ 1,613,234 |
Current operating lease liabilities | 256,222 | 190,622 |
Non-current operating lease liabilities | $ 1,945,631 | $ 1,422,612 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Balance Sheet Components Disclosure [Abstract] | ||
Trade receivables | $ 610,819 | $ 454,399 |
Prepaid expenses | 203,042 | 180,999 |
Other | 742,169 | 524,669 |
Total other current assets | $ 1,556,030 | $ 1,160,067 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020EUR (€) | |
Debt Instrument [Line Items] | ||||
Aggregate outstanding notes | $ 16,309,000 | |||
Debt issuance costs | 107,000 | $ 114,000 | ||
Short-term debt | 499,878 | 0 | ||
Long-term debt | 15,809,095 | 14,759,260 | ||
Long-term notes denominated in foreign currency | 16,416,000 | 14,873,000 | ||
Foreign currency remeasurement loss (gain) on debt | 533,278 | $ (45,576) | $ (73,953) | |
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term notes denominated in foreign currency | € | € 5,170,000,000 | |||
Foreign currency remeasurement loss (gain) on debt | $ 533,000 | |||
Redemption price, percent of outstanding principal | 101.00% |
Debt - Summary of Long-term Deb
Debt - Summary of Long-term Debt (Details) $ in Millions | Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||
Face amount | $ 16,416 | $ 14,873 | ||
Long-term debt, fair value | 18,805 | 15,949 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | € | € 5,170,000,000 | |||
Senior Notes | 5.375% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | 500 | 500 | ||
Long-term debt, fair value | $ 502 | $ 518 | ||
Interest rate | 5.375% | 5.375% | 5.375% | 5.375% |
Senior Notes | 5.500% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 700 | $ 700 | ||
Long-term debt, fair value | $ 735 | $ 744 | ||
Interest rate | 5.50% | 5.50% | 5.50% | 5.50% |
Senior Notes | 5.750% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 400 | $ 400 | ||
Long-term debt, fair value | $ 449 | $ 444 | ||
Interest rate | 5.75% | 5.75% | 5.75% | 5.75% |
Senior Notes | 5.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 800 | $ 800 | ||
Long-term debt, fair value | $ 921 | $ 896 | ||
Interest rate | 5.875% | 5.875% | 5.875% | 5.875% |
Senior Notes | 3.000% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | € 470,000,000 | $ 574 | € 470,000,000 | $ 0 |
Long-term debt, fair value | $ 616 | $ 0 | ||
Interest rate | 3.00% | 3.00% | 3.00% | 3.00% |
Senior Notes | 3.625% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 500 | $ 0 | ||
Long-term debt, fair value | $ 535 | $ 0 | ||
Interest rate | 3.625% | 3.625% | 3.625% | 3.625% |
Senior Notes | 4.375% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 1,000 | $ 1,000 | ||
Long-term debt, fair value | $ 1,110 | $ 1,026 | ||
Interest rate | 4.375% | 4.375% | 4.375% | 4.375% |
Senior Notes | 3.625% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | € 1,300,000,000 | $ 1,588 | € 1,300,000,000 | $ 1,459 |
Long-term debt, fair value | $ 1,776 | $ 1,565 | ||
Interest rate | 3.625% | 3.625% | 3.625% | 3.625% |
Senior Notes | 4.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 1,600 | $ 1,600 | ||
Long-term debt, fair value | $ 1,807 | $ 1,670 | ||
Interest rate | 4.875% | 4.875% | 4.875% | 4.875% |
Senior Notes | 5.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 1,900 | $ 1,900 | ||
Long-term debt, fair value | $ 2,280 | $ 2,111 | ||
Interest rate | 5.875% | 5.875% | 5.875% | 5.875% |
Senior Notes | 4.625% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | € 1,100,000,000 | $ 1,344 | € 1,100,000,000 | $ 1,234 |
Long-term debt, fair value | $ 1,630 | $ 1,378 | ||
Interest rate | 4.625% | 4.625% | 4.625% | 4.625% |
Senior Notes | 6.375% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 800 | $ 800 | ||
Long-term debt, fair value | $ 995 | $ 916 | ||
Interest rate | 6.375% | 6.375% | 6.375% | 6.375% |
Senior Notes | 3.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | € 1,200,000,000 | $ 1,466 | € 1,200,000,000 | $ 1,346 |
Long-term debt, fair value | $ 1,700 | $ 1,429 | ||
Interest rate | 3.875% | 3.875% | 3.875% | 3.875% |
Senior Notes | 5.375% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 900 | $ 900 | ||
Long-term debt, fair value | $ 1,061 | $ 960 | ||
Interest rate | 5.375% | 5.375% | 5.375% | 5.375% |
Senior Notes | 3.625% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | € 1,100,000,000 | $ 1,344 | € 1,100,000,000 | $ 1,234 |
Long-term debt, fair value | $ 1,533 | $ 1,273 | ||
Interest rate | 3.625% | 3.625% | 3.625% | 3.625% |
Senior Notes | 4.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 1,000 | $ 1,000 | ||
Long-term debt, fair value | $ 1,155 | $ 1,019 | ||
Interest rate | 4.875% | 4.875% | 4.875% | 4.875% |
Debt - Maturities (Details)
Debt - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Less than one year | $ 1,264,020 | $ 736,969 |
Due after one year and through three years | 2,136,997 | 2,581,471 |
Due after three years and through five years | 3,614,906 | 1,705,201 |
Due after five years | 14,841,164 | 15,699,800 |
Total debt obligations | $ 21,857,087 | $ 20,723,441 |
Debt - Revolving Line of Credit
Debt - Revolving Line of Credit (Details) - Revolving Credit Facility | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Line of Credit Facility [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 750,000,000 |
Amount borrowed | $ 0 |
Commitment fee percentage | 0.10% |
London Interbank Offered Rate (LIBOR) | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.75% |
Federal Funds Rate | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.50% |
One-Month LIBOR Rate | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.00% |
One-Month LIBOR Rate | Minimum | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.00% |
Commitments and Contingencies_2
Commitments and Contingencies (Streaming Content) (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Contractual Obligation [Line Items] | ||
Total streaming content obligations | $ 19,218,830 | $ 19,490,082 |
Current content liabilities | 4,429,536 | 4,413,561 |
Non-current content liabilities | 2,618,084 | 3,334,323 |
Unrecorded streaming obligations | 12,200,000 | 11,800,000 |
Current Content Liabilities | ||
Contractual Obligation [Line Items] | ||
Current content liabilities | 4,400,000 | 4,400,000 |
Non-current Content Liabilities | ||
Contractual Obligation [Line Items] | ||
Non-current content liabilities | $ 2,600,000 | $ 3,300,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Expected Timing of Payments for Commitments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Less than one year | $ 8,980,868 | $ 8,477,367 |
Due after one year and through 3 years | 7,819,563 | 8,352,731 |
Due after 3 years and through 5 years | 1,973,091 | 2,041,340 |
Due after 5 years | 445,308 | 618,644 |
Total content obligations | $ 19,218,830 | $ 19,490,082 |
Guarantees_Indemnification Ob_2
Guarantees—Indemnification Obligations (Details) | Dec. 31, 2020USD ($) |
Indemnification Agreement | |
Loss Contingencies [Line Items] | |
Indemnification guarantee accrual | $ 0 |
Stockholders' Equity (Voting Ri
Stockholders' Equity (Voting Rights) (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020vote | |
Stockholders' Equity Note [Abstract] | |
Number of voting rights per share | 1 |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Option Plans) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate intrinsic value | $ 6,922 | |||
Shares available for grant (in shares) | 21,702,085 | 6,111,561 | 8,699,941 | 10,739,915 |
Total intrinsic value of options exercised | $ 1,596 | $ 666 | $ 863 | |
Weighted-average remaining contractual term (in years) | 5 years 6 months 18 days | |||
Cash received from option exercised | $ 235 | $ 72 | $ 125 | |
Expiration period | 10 years | |||
2020 Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant (in shares) | 17,500,000 | |||
2011 Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant (in shares) | 5,530,106 |
Stockholders' Equity (Summary o
Stockholders' Equity (Summary of Activity Related to Stock Option Plans) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Shares available for grant, beginning balances | 6,111,561 | 8,699,941 | 10,739,915 |
Options outstanding, number of shares, beginning balance (in shares) | 20,859,326 | 20,479,278 | 21,647,350 |
Shares available for grant, number of shares authorized (in shares) | 17,500,000 | ||
Options outstanding, number of shares granted (in shares) | 1,909,476 | 2,588,380 | 2,039,974 |
Options outstanding, number of shares, exercised (in shares) | (4,088,612) | (2,208,052) | (3,205,911) |
Options outstanding, number of shares expired (in shares) | (3,380) | (280) | (2,135) |
Shares available for grant, ending balances | 21,702,085 | 6,111,561 | 8,699,941 |
Options outstanding, number of shares, ending balance (in shares) | 18,676,810 | 20,859,326 | 20,479,278 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Options outstanding, weighted-average exercise price, beginning balance (dollars per share) | $ 124.28 | $ 89.61 | $ 61.13 |
Options outstanding, weighted-average exercise price, granted (dollars per share) | 432.34 | 320.66 | 311.66 |
Options outstanding, weighted-average exercise price, exercised (dollars per share) | 58.35 | 32.88 | 38.66 |
Options expired, weighted-average exercise price (dollars per share) | 27.54 | 6.74 | 4.60 |
Options outstanding, weighted-average exercise price, ending balance (dollars per share) | $ 170.23 | $ 124.28 | $ 89.61 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Options outstanding, number of shares, vested and exercisable (in shares) | 18,676,810 | ||
Options outstanding, weighted-average exercise price, vested and exercisable (in dollars per share) | $ 170.23 | ||
Weighted-average remaining contractual term (in years) | 5 years 6 months 18 days | ||
Aggregate intrinsic value, vested and exercisable | $ 6,922 |
Stockholders' Equity (Summary_2
Stockholders' Equity (Summary of Assumptions Used to Value Stock Option Grants) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility, minimum | 37.00% | 37.00% | 40.00% |
Expected volatility, maximum | 45.00% | 41.00% | 42.00% |
Risk-free interest rate, minimum | 0.67% | 1.74% | 2.61% |
Risk-free interest rate, maximum | 1.71% | 2.74% | 3.09% |
Suboptimal exercise factor, minimum | 3.34 | 3.07 | 2.80 |
Suboptimal exercise factor, maximum | 3.67 | 3.23 | 3.01 |
Valuation data: | |||
Weighted-average fair value (in dollars per share) | $ 217.42 | $ 156.60 | $ 157.19 |
Total stock-based compensation expense | $ 415,180 | $ 405,376 | $ 320,657 |
Total income tax impact on provision | $ 91,718 | $ 90,856 | $ 67,575 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 2,789,064 | $ 1,719,326 | $ 845,402 |
Foreign | 410,285 | 342,905 | 381,056 |
Income before income taxes | $ 3,199,349 | $ 2,062,231 | $ 1,226,458 |
Income Taxes (Components of Pro
Income Taxes (Components of Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax provision: | |||
Federal | $ 24,221 | $ 21,498 | $ (22,176) |
State | 65,821 | 45,228 | (10,234) |
Foreign | 277,846 | 223,328 | 133,146 |
Total current | 367,888 | 290,054 | 100,736 |
Deferred tax provision: | |||
Federal | (57,765) | (28,003) | (37,396) |
State | 164,685 | (54,507) | (52,391) |
Foreign | (36,854) | (12,229) | 4,267 |
Total deferred | 70,066 | (94,739) | (85,520) |
Provision for income taxes | $ 437,954 | $ 195,315 | $ 15,216 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Expected tax expense at U.S. Federal statutory rates | $ 671,864 | $ 433,059 | $ 257,556 |
State income taxes, net of Federal income tax effect | 65,808 | 47,909 | 33,611 |
Foreign earnings at other than U.S. rates | 12,212 | 56,969 | 63,519 |
Federal and California R&D tax credits | (113,882) | (134,523) | (140,749) |
Valuation allowance on California R&D tax credits | 183,283 | 0 | 0 |
Excess tax benefits on stock-based compensation | (339,436) | (148,693) | (191,323) |
Impact of the Tax Cuts and Jobs Act of 2017 | |||
Rate Change / Transition Tax | 0 | 0 | (71,516) |
Tax effects of the Tax Cuts and Jobs Act | (87,194) | (127,534) | 43,099 |
Global corporate structure simplification | 0 | 35,939 | 0 |
Nondeductible Officers Compensation | 30,351 | 24,111 | 14,377 |
Other | 14,948 | 8,078 | 6,642 |
Provision for income taxes | $ 437,954 | $ 195,315 | $ 15,216 |
Effective Tax Rate | 14.00% | 9.00% | 1.00% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets (liabilities): | ||
Stock-based compensation | $ 296,646 | $ 258,376 |
Federal and California tax R&D credits | 513,413 | 408,715 |
Foreign tax credits | 0 | 137,818 |
Accruals and reserves | 74,239 | 42,450 |
Operating leases | 436,838 | 349,208 |
Foreign Net Operating Losses | 29,894 | 411 |
Unrealized Gain/Loss | 114,884 | 5,477 |
Other | 2,543 | 622 |
Gross deferred tax assets | 1,468,457 | 1,203,077 |
Depreciation & amortization | (229,142) | (80,921) |
Operating leases | (400,380) | (329,168) |
Gross deferred tax liabilities | (629,522) | (410,089) |
Valuation allowance | (249,844) | (134,782) |
Net deferred tax assets | $ 589,091 | $ 658,206 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Loss Carryforwards [Line Items] | |||
Deferred tax asset valuation allowance | $ 249,844 | $ 134,782 | |
Foreign tax credits | 0 | 137,818 | |
Unrecognized tax benefits | 140,124 | 66,768 | $ 47,534 |
Reduction in provision for income taxes due to impact of effective tax rate | 86,000 | $ 57,000 | |
Research Tax Credit Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | 250,000 | ||
Valuation allowance | 250,000 | ||
Federal tax authority | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | 317,000 | ||
State tax authority | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | 365,000 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | 135,000 | ||
Valuation allowance | $ 135,000 |
Income Taxes (Summary of Change
Income Taxes (Summary of Changes in Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning Balance | $ 66,768 | $ 47,534 |
Increases related to tax positions taken during prior periods | 11,943 | 925 |
Decreases related to tax positions taken during prior periods | (3,697) | (417) |
Increases related to tax positions taken during the current period | 65,110 | 18,826 |
Decreases related to expiration of statute of limitations | 0 | (100) |
Ending Balance | $ 140,124 | $ 66,768 |
Employee Benefit Plan - Narrati
Employee Benefit Plan - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Eligible employees maximum contribution percentage | 80.00% | ||
Contributions by employer | $ 69 | $ 47 | $ 27 |
Employee Benefit Plan - Multiem
Employee Benefit Plan - Multiemployer Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Multiemployer Plan [Line Items] | |||
Total contributions | $ 130,382 | $ 134,054 | $ 59,287 |
Multiemployer Plan, Type [Extensible List] | us-gaap:OtherPensionPlansPostretirementOrSupplementalPlansDefinedBenefitMember | ||
Multiemployer Pension Benefits | |||
Multiemployer Plan [Line Items] | |||
Total contributions | $ 78,060 | 89,703 | 32,389 |
Multiemployer Health Benefits | |||
Multiemployer Plan [Line Items] | |||
Total contributions | $ 52,322 | $ 44,351 | $ 26,898 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)membership | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of operating segments | membership | 1 | ||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 6,644,442 | $ 6,435,637 | $ 6,148,286 | $ 5,767,691 | $ 5,467,434 | $ 5,244,905 | $ 4,923,116 | $ 4,520,992 | $ 24,996,056 | $ 20,156,447 | $ 15,794,341 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 10,800,000 | $ 9,500,000 | $ 8,000,000 |
Segment Information (Long-lived
Segment Information (Long-lived Assets by Geographic Areas) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 2,224,891 | $ 1,503,459 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 773,018 | $ 594,047 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 6,644,442 | $ 6,435,637 | $ 6,148,286 | $ 5,767,691 | $ 5,467,434 | $ 5,244,905 | $ 4,923,116 | $ 4,520,992 | $ 24,996,056 | $ 20,156,447 | $ 15,794,341 |
Gross profit | 2,479,282 | 2,567,886 | 2,504,579 | 2,167,990 | 2,001,411 | 2,146,986 | 1,917,459 | 1,650,378 | |||
Net income | $ 542,156 | $ 789,976 | $ 720,196 | $ 709,067 | $ 586,970 | $ 665,244 | $ 270,650 | $ 344,052 | $ 2,761,395 | $ 1,866,916 | $ 1,211,242 |
Earnings (loss) per share: | |||||||||||
Basic (in USD per share) | $ 1.23 | $ 1.79 | $ 1.63 | $ 1.61 | $ 1.34 | $ 1.52 | $ 0.62 | $ 0.79 | $ 6.26 | $ 4.26 | $ 2.78 |
Diluted (in USD per share) | $ 1.19 | $ 1.74 | $ 1.59 | $ 1.57 | $ 1.30 | $ 1.47 | $ 0.60 | $ 0.76 | $ 6.08 | $ 4.13 | $ 2.68 |