NETFLIX INC, 10-K filed on 1/29/2020
Annual Report
v3.19.3.a.u2
Cover - USD ($)
12 Months Ended
Dec. 31, 2019
Jun. 30, 2019
Cover page.    
Document Type 10-K  
Document Annual Report true  
Document Period End Date Dec. 31, 2019  
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, $0.001 par value 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  
Entity Shell Company false  
Entity Public Float   $ 156,930,337,748
Entity Common Stock, Shares Outstanding 438,806,649  
Entity Central Index Key 0001065280  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus FY  
Amendment Flag false  
v3.19.3.a.u2
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Statement [Abstract]      
Revenues $ 20,156,447 $ 15,794,341 $ 11,692,713
Cost of revenues 12,440,213 9,967,538 8,033,000
Marketing 2,652,462 2,369,469 1,436,281
Technology and development 1,545,149 1,221,814 953,710
General and administrative 914,369 630,294 431,043
Operating income 2,604,254 1,605,226 838,679
Other income (expense):      
Interest expense (626,023) (420,493) (238,204)
Interest and other income (expense) 84,000 41,725 (115,154)
Income before income taxes 2,062,231 1,226,458 485,321
Provision for (benefit from) income taxes 195,315 15,216 (73,608)
Net income $ 1,866,916 $ 1,211,242 $ 558,929
Earnings per share:      
Basic (in USD per share) $ 4.26 $ 2.78 $ 1.29
Diluted (in USD per share) $ 4.13 $ 2.68 $ 1.25
Weighted-average common shares outstanding:      
Basic (in shares) 437,799 435,374 431,885
Diluted (in shares) 451,765 451,244 446,814
v3.19.3.a.u2
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Statement of Comprehensive Income [Abstract]      
Net income $ 1,866,916 $ 1,211,242 $ 558,929
Other comprehensive income (loss):      
Foreign currency translation adjustments (3,939) 975 27,409
Change in unrealized gains (losses) on available-for-sale securities, net of tax of $0, $0, and $378, respectively 0 0 599
Total other comprehensive income (loss) (3,939) 975 28,008
Comprehensive income $ 1,862,977 $ 1,212,217 $ 586,937
v3.19.3.a.u2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Statement of Comprehensive Income [Abstract]      
Change in unrealized gains (losses) on available for sale securities, tax $ 0 $ 0 $ 378
v3.19.3.a.u2
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Cash flows from operating activities:      
Net income $ 1,866,916 $ 1,211,242 $ 558,929
Adjustments to reconcile net income to net cash used in operating activities:      
Additions to streaming content assets (13,916,683) (13,043,437) (9,805,763)
Change in streaming content liabilities (694,011) 999,880 900,006
Amortization of streaming content assets 9,216,247 7,532,088 6,197,817
Depreciation and amortization of property, equipment and intangibles 103,579 83,157 71,911
Stock-based compensation expense 405,376 320,657 182,209
Other non-cash items 228,230 81,640 117,864
Foreign currency remeasurement loss (gain) on long-term debt (45,576) (73,953) 140,790
Deferred taxes (94,443) (85,520) (208,688)
Changes in operating assets and liabilities:      
Other current assets (252,113) (200,192) (234,090)
Accounts payable 96,063 199,198 74,559
Accrued expenses and other liabilities 157,778 150,422 114,337
Deferred revenue 163,846 142,277 177,974
Other non-current assets and liabilities (122,531) 2,062 (73,803)
Net cash used in operating activities (2,887,322) (2,680,479) (1,785,948)
Cash flows from investing activities:      
Purchases of property and equipment (253,035) (173,946) (173,302)
Change in other assets (134,029) (165,174) (60,409)
Purchases of short-term investments 0 0 (74,819)
Proceeds from sale of short-term investments 0 0 320,154
Proceeds from maturities of short-term investments 0 0 22,705
Net cash provided by (used in) investing activities (387,064) (339,120) 34,329
Cash flows from financing activities:      
Proceeds from issuance of debt 4,469,306 3,961,852 3,020,510
Debt issuance costs (36,134) (35,871) (32,153)
Proceeds from issuance of common stock 72,490 124,502 88,378
Other financing activities 0 (1,956) 255
Net cash provided by financing activities 4,505,662 4,048,527 3,076,990
Effect of exchange rate changes on cash, cash equivalents and restricted cash 469 (39,682) 29,848
Net increase in cash, cash equivalents and restricted cash 1,231,745 989,246 1,355,219
Cash and cash equivalents, beginning of year 3,812,041 2,822,795 1,467,576
Cash, cash equivalents and restricted cash, end of year 5,043,786 3,812,041 2,822,795
Supplemental disclosure:      
Income taxes paid 400,658 131,069 113,591
Interest paid $ 599,132 $ 375,831 $ 213,313
v3.19.3.a.u2
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Current assets:    
Cash and cash equivalents $ 5,018,437 $ 3,794,483
Current content assets, net 0 5,151,186
Other current assets 1,160,067 748,466
Total current assets 6,178,504 9,694,135
Non-current content assets, net 24,504,567 14,951,141
Property and equipment, net 565,221 418,281
Other non-current assets 2,727,420 910,843
Total assets 33,975,712 25,974,400
Current liabilities:    
Current content liabilities 4,413,561 4,681,562
Accounts payable 674,347 562,985
Accrued expenses and other liabilities 843,043 481,874
Deferred revenue 924,745 760,899
Total current liabilities 6,855,696 6,487,320
Non-current content liabilities 3,334,323 3,759,026
Long-term debt 14,759,260 10,360,058
Other non-current liabilities 1,444,276 129,231
Total liabilities 26,393,555 20,735,635
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, $0.001 par value; 10,000,000 shares authorized at December 31, 2019 and 2018; no shares issued and outstanding at December 31, 2019 and 2018 0 0
Common stock, $0.001 par value; 4,990,000,000 shares authorized at December 31, 2019 and December 31, 2018, respectively; 438,806,649 and 436,598,597 issued and outstanding at December 31, 2019 and December 31, 2018, respectively 2,793,929 2,315,988
Accumulated other comprehensive loss (23,521) (19,582)
Retained earnings 4,811,749 2,942,359
Total stockholders’ equity 7,582,157 5,238,765
Total liabilities and stockholders’ equity $ 33,975,712 $ 25,974,400
v3.19.3.a.u2
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2019
Dec. 31, 2018
Statement of Financial Position [Abstract]    
Preferred stock, par value (in USD per share) $ 0.001 $ 0.001
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (in USD per share) $ 0.001 $ 0.001
Common stock, shares authorized 4,990,000,000 4,990,000,000
Common stock, shares issued 438,806,649 436,598,597
Common stock, shares outstanding 438,806,649 436,598,597
v3.19.3.a.u2
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock and Additional Paid-in Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Beginning Balance at Dec. 31, 2016 $ 2,679,800 $ 1,599,762 $ (48,565) $ 1,128,603
Beginning Balance (in shares) at Dec. 31, 2016   430,054,212    
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income 558,929     558,929
Other comprehensive income (loss) 28,008   28,008  
Issuance of common stock upon exercise of options $ 89,425 $ 89,425    
Issuance of common stock upon exercise of options (in shares) 3,338,474 3,338,474    
Stock-based compensation expense $ 182,209 $ 182,209    
Ending Balance at Dec. 31, 2017 3,581,956 $ 1,871,396 (20,557) 1,731,117
Ending Balance (in shares) at Dec. 31, 2017   433,392,686    
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 $ 123,935 $ 123,935    
Issuance of common stock upon exercise of options (in shares) 3,205,911 3,205,911    
Stock-based compensation expense $ 320,657 $ 320,657    
Ending Balance at Dec. 31, 2018 5,238,765 $ 2,315,988 (19,582) 2,942,359
Ending Balance (in shares) at Dec. 31, 2018   436,598,597    
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income 1,866,916     1,866,916
Other comprehensive income (loss) (3,939)   (3,939)  
Issuance of common stock upon exercise of options $ 72,565 $ 72,565    
Issuance of common stock upon exercise of options (in shares) 2,208,052 2,208,052    
Stock-based compensation expense $ 405,376 $ 405,376    
Ending Balance at Dec. 31, 2019 $ 7,582,157 $ 2,793,929 $ (23,521) $ 4,811,749
Ending Balance (in shares) at Dec. 31, 2019   438,806,649    
v3.19.3.a.u2
Organization and Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2019
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 the world’s leading subscription streaming entertainment service with over 167 million paid streaming 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, over two million members in the United States ("U.S.") subscribe to our legacy DVD-by-mail service.
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.
Reclassification
Certain prior period amounts in the Consolidated Statements of Cash Flows and the Consolidated Balance Sheets have been reclassified to conform to the current period presentation. In the Consolidated Statements of Cash Flows, the amortization of DVD content assets has been reclassified into "Other non-cash items" within "Cash flows from operating activities". In addition, cash flows from the acquisition of DVD content assets have been reclassified into "Change in other assets" within "Cash flows from investing activities". In the Consolidated Balance Sheets, DVD content assets have been reclassified from "Non-current content assets, net" to "Other non-current assets" and DVD content liabilities have been reclassified from "Current content liabilities" and "Non-current content liabilities" to "Accrued expenses and other liabilities" and "Other non-current liabilities", respectively. There is no change to consolidated operating income, net income or cash flows as a result of this change in classification.
Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted 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 streaming 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 February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases (Topic 842) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under prior GAAP. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. The Company adopted ASU 2016-02 in the first quarter of 2019 utilizing the modified retrospective transition method through a cumulative-effect adjustment at the beginning of the first quarter of 2019. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any existing leases as of the adoption date. The Company did not elect to apply the hindsight practical expedient when determining lease term and assessing impairment of right-of-use assets. The adoption of ASU 2016-02 on January 1, 2019 resulted in the recognition of right-of-use assets of approximately $743 million, lease liabilities for operating leases of approximately $813 million and a cumulative-effect adjustment on retained earnings of $2 million on its Consolidated Balance Sheets, with no material impact to its Consolidated Statements of Operations. See Note 3 for further information regarding the impact of the adoption of ASU 2016-02 on the Company's financial statements.
In March 2019, the FASB issued ASU 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials, in order to align the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization. ASU 2019-02 also requires that an entity
reassess estimates of the use of a film in a film group and account for any changes prospectively. In addition, ASU 2019-02 requires that an entity test films and license agreements for program material for impairment at a film group level when the film or license agreements are predominantly monetized with other films and license agreements. ASU 2019-02 is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company early adopted ASU 2019-02 in the first quarter of 2019 and as such has included all content assets (licensed and produced) as "Non-current content assets, net" on its Consolidated Balance Sheets, beginning with the period of adoption. There was no material impact to its Consolidated Statements of Operations. See the Company's updated Streaming Content policy below for further details.
Recently issued accounting pronouncements not yet adopted
In June 2016, the FASB issued 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 current GAAP with a methodology that requires consideration of a broader range of information to estimate credit losses. While the Company is continuing to assess the potential impacts of ASU 2016-13, it does not expect ASU 2016-13 to have a material effect 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.

Streaming Content
The Company acquires, licenses and produces content, including original programming, in order to offer members unlimited viewing of TV series and films. 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 streaming assets and the changes in related liabilities, are classified within "Net cash used in operating activities" on the Consolidated Statements of Cash Flows.
The Company recognizes content assets (licensed and produced) as “Non-current content assets, net” on the Consolidated Balance Sheets. For licenses, 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 productions, 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 streaming 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.
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 consumer electronics (“CE”) manufacturers, multichannel video programming distributors (“MVPDs”), mobile operators and internet service providers (“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, but in the case where 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 revenue, paid net membership additions, and ending paid memberships by region for the years December 31, 2019, 2018 and 2017, respectively:

United States and Canada (UCAN)
 
 
As of/ Year Ended December 31,
 
 
2019
 
2018
 
2017
 
 
(in thousands)
Revenues
 
$
10,051,208

 
$
8,281,532

 
$
6,660,859

Paid net membership additions
 
2,905

 
6,335

 
5,512

Paid memberships at end of period
 
67,662

 
64,757

 
58,422


Europe, Middle East, and Africa (EMEA)
 
 
As of/ Year Ended December 31,
 
 
2019
 
2018
 
2017
 
 
(in thousands)
Revenues
 
$
5,543,067

 
$
3,963,707

 
$
2,362,813

Paid net membership additions
 
13,960

 
11,814

 
8,173

Paid memberships at end of period
 
51,778

 
37,818

 
26,004


Latin America (LATAM)
 
 
As of/ Year Ended December 31,
 
 
2019
 
2018
 
2017
 
 
(in thousands)
Revenues
 
$
2,795,434

 
$
2,237,697

 
$
1,642,616

Paid net membership additions
 
5,340

 
6,360

 
5,509

Paid memberships at end of period
 
31,417

 
26,077

 
19,717




Asia-Pacific (APAC)
 
 
As of/ Year Ended December 31,
 
 
2019
 
2018
 
2017
 
 
(in thousands)
Revenues
 
$
1,469,521

 
$
945,816

 
$
575,928

Paid net membership additions
 
5,626

 
4,106

 
2,360

Paid memberships at end of period
 
16,233

 
10,607

 
6,501


A paid membership (also referred to as a paid subscription) is defined as a membership that has the right to receive Netflix service following sign-up and a method of payment being provided, and that is not part of a free trial or other promotional offering by the Company to certain new and rejoining members. A membership is canceled and ceases to be reflected in the above metrics as of the effective cancellation date. Voluntary cancellations generally become effective at the end of the prepaid membership period. Involuntary cancellation of the service, as a result of a failed method of payment, becomes effective immediately. Memberships are assigned to territories based on the geographic location used at time of sign-up as determined by the Company’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 $9.5 billion, $8.0 billion and $6.6 billion for the years ended December 31, 2019, 2018 and 2017, respectively. DVD revenues were $0.3 billion, $0.4 billion, and $0.5 billion for the years ended December 31, 2019, 2018 and 2017, respectively.
Deferred revenue consists of membership fees billed that have not been recognized, as well as gift and other prepaid memberships that have not been fully redeemed. As of December 31, 2019, total deferred revenue was $925 million, the vast majority of which was related to membership fees billed that are expected to be recognized as revenue within the next month. The remaining deferred revenue balance, which is related to gift cards and other prepaid memberships, will be recognized as revenue over the period of service after redemption, which is expected to occur over the next 12 months. The $164 million increase in deferred revenue as compared to the balance of $761 million for the year ended December 31, 2018, is a result of the increase in membership fees billed due to increased memberships and average monthly revenue per paying memberships.
Marketing
Marketing expenses consist primarily of advertising expenses and certain payments made to the Company’s partners, including CE manufacturers, MVPDs, mobile operators and ISPs. Advertising expenses include promotional activities such as digital and television advertising. Advertising costs are expensed as incurred. Advertising expenses were $1,879 million, $1,808 million and $1,091 million for the years ended December 31, 2019, 2018 and 2017, 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 $1,673 million, $1,218 million and $981 million for the years ended December 31, 2019, 2018 and 2017, 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 8 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 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 gain of $7 million for the year ended December 31, 2019, and in a loss of $1 million and $128 million for the years ended December 31, 2018 and 2017, respectively.
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,
 
2019
 
2018
 
2017
 
(in thousands, except per share data)
Basic earnings per share:
 
 
 
 
 
Net income
$
1,866,916

 
$
1,211,242

 
$
558,929

Shares used in computation:
 
 
 
 
 
Weighted-average common shares outstanding
437,799

 
435,374

 
431,885

Basic earnings per share
$
4.26

 
$
2.78

 
$
1.29

Diluted earnings per share:
 
 
 
 
 
Net income
$
1,866,916

 
$
1,211,242

 
$
558,929

Shares used in computation:
 
 
 
 
 
Weighted-average common shares outstanding
437,799

 
435,374

 
431,885

Employee stock options
13,966

 
15,870

 
14,929

Weighted-average number of shares
451,765

 
451,244

 
446,814

Diluted earnings per share
$
4.13

 
$
2.68

 
$
1.25


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,
 
2019
 
2018
 
2017
 
(in thousands)
Employee stock options
1,588

 
330

 
189


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 7 to the consolidated financial statements for further information regarding stock-based compensation.
v3.19.3.a.u2
Cash, Cash Equivalents and Restricted Cash
12 Months Ended
Dec. 31, 2019
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, 2019 and 2018:
 
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



 
As of December 31, 2018
 
Cash and cash equivalents
 
Non-current Assets
 
Total
 
(in thousands)
Cash
$
2,572,685

 
$
16,260

 
$
2,588,945

Level 1 securities:
 
 
 
 
 
Money market funds
1,221,798

 
1,298

 
1,223,096

 
 
 
 
 
 
 
$
3,794,483

 
$
17,558

 
$
3,812,041


Other current assets include restricted cash for self insurance. Non-current assets include restricted cash related to workers compensation deposits and letter of credit agreements. Balances as of December 31, 2019 are included in cash, cash equivalents, and restricted cash on the Consolidated Statements of Cash Flows. 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, 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 4 to the consolidated financial statements for further information regarding the fair value of the Company’s senior notes.
v3.19.3.a.u2
Balance Sheet Components
12 Months Ended
Dec. 31, 2019
Balance Sheet Components Disclosure [Abstract]  
Balance Sheet Components
Balance Sheet Components
Content Assets
Content assets consisted of the following:
 
As of December 31,
 
2019
 
2018
 
(in thousands)
 
 
 
 
Licensed content, net
$
14,703,352

 
$
14,081,463

Produced content, net
 
 
 
Released, less amortization
4,382,685

 
2,403,896

In production
4,750,664

 
3,305,126

In development and pre-production
667,866

 
311,842

 
9,801,215

 
6,020,864

 
 
 
 
Total
$
24,504,567

 
$
20,102,327

 
 
 
 
Current content assets, net
$

 
$
5,151,186

Non-current content assets, net
$
24,504,567

 
$
14,951,141


As of December 31, 2019, approximately $5,793 million, $3,733 million, and $2,518 million of the $14,703 million unamortized cost of the licensed content is expected to be amortized in each of the next three years. As of December 31, 2019, approximately $1,552 million, $1,187 million, and $882 million of the $4,383 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, 2019, the amount of accrued participations and residuals was not material.
The following table represents the amortization of streaming content assets:
 
Year ended December 31,
 
2019
 
2018
 
2017
 
(in thousands)
Licensed content
$
7,242,799

 
$
6,511,689

 
$
5,680,373

Produced content
1,973,448

 
1,020,399

 
517,444

Total streaming content
$
9,216,247

 
$
7,532,088

 
$
6,197,817





















Property and Equipment, Net
Property and equipment and accumulated depreciation consisted of the following:
 
 
As of December 31,
 
Estimated Useful Lives (in Years)
 
 
2019
 
2018
 
 
 
(in thousands)
 
 
Land
 
$
6,125

 
$
6,125

 
 
Buildings
 
33,141

 
73,468

 
30 years
Leasehold improvements
 
354,999

 
282,028

 
Over life of lease
Furniture and fixtures
 
87,465

 
63,667

 
3-15 years
Information technology
 
243,565

 
224,296

 
3 years
Corporate aircraft
 
108,995

 
62,560

 
8 years
Machinery and equipment
 
46,415

 
55,108

 
3-5 years
Capital work-in-progress
 
100,521

 
19,548

 
 
Property and equipment, gross
 
981,226

 
786,800

 
 
Less: Accumulated depreciation
 
(416,005
)
 
(368,519
)
 
 
Property and equipment, net
 
$
565,221

 
$
418,281

 
 

    
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 15 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 December 31, 2019 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 December 31, 2019 Consolidated Balance Sheets.  Based on the present value of the lease payments for the remaining lease term of the Company's existing leases, the Company recognized right-of-use assets of approximately $743 million and lease liabilities for operating leases of approximately $813 million on January 1, 2019. Operating lease right-of-use assets and liabilities commencing after January 1, 2019 are recognized at commencement date based on the present value of lease payments over the lease term. As of December 31, 2019, total right-of-use assets and operating lease liabilities were approximately $1,532 million and $1,613 million, respectively. 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, 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 and $75 million for the years ended December 31, 2018 and December 31, 2017, respectively.
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 right-of-use assets and related lease liabilities were as follows:
 
Year ended December 31,
 
2019
 
(in thousands)
Cash paid for operating lease liabilities
$
192,084

Right-of-use assets obtained in exchange for new operating lease obligations (1)
1,672,462

(1) Balance includes $743 million for operating leases existing on January 1, 2019.
 
As of
 
December 31, 2019
 
 
Weighted-average remaining lease term
8.8 years

Weighted-average discount rate
5.0
%


Maturities of lease liabilities as of December 31, 2019 were as follows (in thousands):
Due in 12 month period ended December 31,
2020
$
248,636

2021
246,148

2022
226,020

2023
211,387

2024
194,506

Thereafter
912,457

 
2,039,154

Less imputed interest
(425,920
)
Total lease liabilities
1,613,234

 
 
Current operating lease liabilities
190,622

Non-current operating lease liabilities
1,422,612

Total lease liabilities
$
1,613,234


The Company has additional operating leases for real estate of $699 million which have not commenced as of December 31, 2019, and as such, have not been recognized on the Company's Consolidated Balance Sheets. These operating leases are expected to commence in 2020 with lease terms between 1 year and 15 years.

Other Current Assets
Other current assets consisted of the following:
 
 
As of
 
 
December 31,
2019
 
December 31,
2018
 
 
(in thousands)
Trade receivables
 
$
454,399

 
$
362,712

Prepaid expenses
 
180,999

 
178,833

Other receivables
 
524,669

 
206,921

Total other current assets
 
$
1,160,067

 
$
748,466


v3.19.3.a.u2
Long-term Debt
12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Long-term Debt Long-term Debt

As of December 31, 2019, the Company had aggregate outstanding long-term notes of $14,759 million, net of $114 million of issuance costs, with varying maturities (the "Notes"). 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 long-term notes is denominated in foreign currency (comprised of €4,700 million) and is remeasured into U.S. dollars at each balance sheet date (with remeasurement gain totaling $46 million for the year ended December 31, 2019).

The following table provides a summary of the Company's outstanding long-term debt and the fair values based on quoted market prices in less active markets as of December 31, 2019 and December 31, 2018:

 
 
 
 
 
 
 
 
 
Level 2 Fair Value as of
 
Principal Amount at Par
 
Issuance Date
 
Maturity
 
Interest Due Dates
 
December 31,
2019
 
December 31,
2018
 
(in millions)
 
 
 
 
 
 
 
(in millions)
5.375% Senior Notes
$
500

 
February 2013
 
February 2021
 
February and August
 
$
518

 
$
509

5.500% Senior Notes
700

 
February 2015
 
February 2022
 
April and October
 
744

 
706

5.750% Senior Notes
400

 
February 2014
 
March 2024
 
March and September
 
444

 
407

5.875% Senior Notes
800

 
February 2015
 
February 2025
 
April and October
 
896

 
812

4.375% Senior Notes
1,000

 
October 2016
 
November 2026
 
May and November
 
1,026

 
915

3.625% Senior Notes (1)
1,459

 
May 2017
 
May 2027
 
May and November
 
1,565

 
1,446

4.875% Senior Notes
1,600

 
October 2017
 
April 2028
 
April and October
 
1,670

 
1,464

5.875% Senior Notes
1,900

 
April 2018
 
November 2028
 
May and November
 
2,111

 
1,851

4.625% Senior Notes (2)
1,234

 
October 2018
 
May 2029
 
May and November
 
1,378

 
1,241

6.375% Senior Notes
800

 
October 2018
 
May 2029
 
May and November
 
916

 
797

3.875% Senior Notes (3)
1,346

 
April 2019
 
November 2029
 
June and December
 
1,429

 

5.375% Senior Notes
900

 
April 2019
 
November 2029
 
June and December
 
960

 

3.625% Senior Notes (4)
1,234

 
October 2019
 
June 2030
 
June and December
 
1,273

 

4.875% Senior Notes
1,000

 
October 2019
 
June 2030
 
June and December
 
1,019

 

 
$
14,873

 
 
 
 
 
 
 
 
 
 


(1) Debt is denominated in euro with a €1,300 million principal amount. Total proceeds were $1,421 million
(2) Debt is denominated in euro with a €1,100 million principal amount. Total proceeds were $1,262 million.
(3) Debt is denominated in euro with a €1,200 million principal amount. Total proceeds were $1,343 million.
(4) Debt is denominated in euro with a €1,100 million principal amount. Total proceeds were $1,226 million.
The expected timing of principal and interest payments for these Notes are as follows:
 
As of 
 
December 31,
2019
 
December 31, 2018
 
(in thousands)
Less than one year
$
736,969

 
$
538,384

Due after one year and through three years
2,581,471

 
1,550,581

Due after three years and through five years
1,705,201

 
1,646,101

Due after five years
15,699,800

 
11,138,129

Total debt obligations
$
20,723,441

 
$
14,873,195


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, 2019 and December 31, 2018, the Company was in compliance with all related covenants.

Revolving Credit Facility

In July 2017, the Company entered into a $500 million unsecured revolving credit facility (“Revolving Credit Agreement”), with an uncommitted incremental facility to increase the amount of the revolving credit facility by up to an additional $250 million, subject to certain terms and conditions. On March 29, 2019, the agreement was amended to extend the maturity date from July 27, 2022 to March 29, 2024 and to increase the size of the credit facility to $750 million, without impacting the existing uncommitted incremental facility. 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, 2019, 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, 2019, the Company was in compliance with all related covenants.
v3.19.3.a.u2
Commitments and Contingencies
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
Streaming Content
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.
At December 31, 2018, the Company had $19.3 billion of obligations comprised of $4.7 billion included in "Current content liabilities" and $3.8 billion of "Non-current content liabilities" on the Consolidated Balance Sheets and $10.8 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 streaming content obligations is as follows:
 
As of December 31,
 
2019
 
2018
 
(in thousands)
Less than one year
$
8,477,367

 
$
8,611,398

Due after one year and through 3 years
8,352,731

 
8,841,561

Due after 3 years and through 5 years
2,041,340

 
1,684,582

Due after 5 years
618,644

 
148,334

Total streaming content obligations
$
19,490,082

 
$
19,285,875


    
Content obligations include amounts related to the acquisition, licensing and production of streaming 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.
v3.19.3.a.u2
Guarantees—Indemnification Obligations
12 Months Ended
Dec. 31, 2019
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.
v3.19.3.a.u2
Stockholders' Equity
12 Months Ended
Dec. 31, 2019
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 Plans
In June 2011, the Company adopted the 2011 Stock Plan. The 2011 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.
A summary of the activities related to the Company’s stock option plans is as follows:
 
 
Shares Available
for Grant
 
Options Outstanding
 
Weighted- Average Remaining Contractual Term (in Years)
 
Aggregate
Intrinsic Value
(in Thousands)
 
Number of
Shares
 
Weighted- Average Exercise Price
(per Share)
 
Balances as of December 31, 2016
13,289,953

 
22,437,347

 
$
44.83

 
 
 
 
Granted
(2,550,038
)
 
2,550,038

 
159.56

 
 
 
 
Exercised

 
(3,338,474
)
 
26.79

 
 
 
 
Expired

 
(1,561
)
 
3.25

 
 
 
 
Balances as of December 31, 2017
10,739,915

 
21,647,350

 
$
61.13

 
 
 
 
Granted
(2,039,974
)
 
2,039,974

 
311.66

 
 
 
 
Exercised

 
(3,205,911
)
 
38.66

 
 
 
 
Expired

 
(2,135
)
 
$
4.60

 
 
 
 
Balances as of December 31, 2018
8,699,941

 
20,479,278

 
$
89.61

 
 
 
 
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

 
5.57
 
$
4,230,013

Vested and exercisable at
December 31, 2019
 
 
20,859,326

 
$
124.28

 
5.57
 
$
4,230,013


The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of 2019 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 2019. 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, 2019, 2018 and 2017 was $666 million, $863 million and $464 million, respectively.
Cash received from option exercises for the years ended December 31, 2019, 2018 and 2017 was $72 million, $125 million and $88 million, respectively.
Stock-Based Compensation
Stock options granted are exercisable for the full ten year contractual term regardless of employment status. The following table summarizes the assumptions used to value option grants using the lattice-binomial model and the valuation data:
 
 
 
Year Ended December 31,
 
 
2019
 
2018
 
2017
Dividend yield
 
%
 
%
 
%
Expected volatility
 
37% - 41%

 
40% - 42%

 
34% - 37%

Risk-free interest rate
 
1.74% - 2.74%

 
2.61% - 3.09%

 
2.24% - 2.45%

Suboptimal exercise factor
 
3.07 - 3.23

 
2.80 - 3.01

 
2.48 - 2.63

Valuation data:
 
 
 
 
 
 
Weighted-average fair value (per share)
 
$
156.60

 
$
157.19

 
$
71.45

Total stock-based compensation expense (in thousands)
 
405,376

 
320,657

 
182,209

Total income tax impact on provision (in thousands)
 
90,856

 
67,575

 
61,842



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.
Accumulated Other Comprehensive Loss
The following table summarizes the changes in accumulated balances of other comprehensive loss, net of tax:

 
Foreign currency
 
(in thousands)
Balances as of December 31, 2017
$
(20,557
)
Other comprehensive income before reclassifications
975

Net decrease in accumulated other comprehensive loss
975

Balances as of December 31, 2018
$
(19,582
)
Other comprehensive loss before reclassifications
(3,939
)
Net increase in accumulated other comprehensive loss
(3,939
)
Balances as of December 31, 2019
$
(23,521
)

v3.19.3.a.u2
Income Taxes
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
Income before provision for income taxes was as follows:
 
Year Ended December 31,
 
2019
 
2018
 
2017
 
(in thousands)
United States
$
1,719,326

 
$
845,402

 
$
144,100

Foreign
342,905

 
381,056

 
341,221

Income before income taxes
$
2,062,231

 
$
1,226,458

 
$
485,321


The components of provision for (benefit from) income taxes for all periods presented were as follows:
 
 
Year Ended December 31,
 
2019
 
2018
 
2017
 
(in thousands)
Current tax provision:
 
 
 
 
 
Federal
$
21,498

 
$
(22,176
)
 
$
54,245

State
45,228

 
(10,234
)
 
(7,601
)
Foreign
223,328

 
133,146

 
88,436

Total current
290,054

 
100,736

 
135,080

Deferred tax provision:
 
 
 
 
 
Federal
(28,003
)
 
(37,396
)
 
(153,963
)
State
(54,507
)
 
(52,391
)
 
(52,695
)
Foreign
(12,229
)
 
4,267

 
(2,030
)
Total deferred
(94,739
)
 
(85,520
)
 
(208,688
)
Provision for (benefit from) income taxes
$
195,315

 
$
15,216

 
$
(73,608
)


In connection with the Tax Cuts and Jobs Act of 2017 the Company simplified its global corporate structure, effective April 1, 2019. The tax impacts of such simplifications were not material to the financial statements as a whole. During the fourth quarter of 2019, the United States Treasury issued final regulations with respect to certain aspects related to the Tax Cuts and Jobs Act of 2017. Additional guidance provided in these regulations resulted in a tax adjustment in the fourth quarter of 2019. We paid U.S. Federal taxes for the full year inclusive of this fourth quarter adjustment.
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,
 
2019
 
2018
 
2017
 
(in thousands)
Expected tax expense at U.S. Federal statutory rates
$
433,059

 
$
257,556

 
$
169,860

State income taxes, net of Federal income tax effect
47,909

 
33,611

 
6,404

Foreign earnings at other than U.S. rates
56,969

 
63,519

 
(87,514
)
Federal and California R&D tax credits
(134,523
)
 
(140,749
)
 
(79,868
)
Excess tax benefits on stock-based compensation
(148,693
)
 
(191,323
)
 
(157,888
)
Impact of the Tax Cuts and Jobs Act of 2017
 
 
 
 
 
Rate Change / Transition Tax

 
(71,516
)
 
79,077

Tax effects of the Tax Cuts and Jobs Act
(127,534
)
 
43,099

 

Global corporate structure simplification
35,939

 

 

Nondeductible Officers Compensation
24,111

 
14,377

 
28

Other
8,078

 
6,642

 
(3,707
)
Provision for (benefit from) income taxes
$
195,315

 
$
15,216

 
$
(73,608
)
Effective Tax Rate
9
%
 
1
%
 
(15
)%


The components of deferred tax assets and liabilities were as follows:
 
 
As of December 31,
 
2019
 
2018
 
(in thousands)
Deferred tax assets:
 
 
 
Stock-based compensation
$
258,376

 
$
190,451

Federal and California tax R&D credits
408,715

 
369,023

Foreign tax credits
137,818

 
218,026

Accruals and reserves
42,450

 
36,396

Operating leases
349,208

 

Other
6,510

 
27,203

Gross deferred tax assets
1,203,077

 
841,099

Depreciation & amortization
(80,921
)
 
(151,678
)
Operating leases
(329,168
)
 

Gross deferred tax liabilities
(410,089
)
 
(151,678
)
Valuation allowance
(134,782
)
 
(124,996
)
Net deferred tax assets
$
658,206

 
$
564,425


All deferred tax assets are classified as “Other non-current assets” on the Consolidated Balance Sheets as of December 31, 2019 and December 31, 2018. 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, 2019, the valuation allowance of $135 million was primarily related to certain foreign tax credits that are not likely to be realized.
As of December 31, 2019, the Company's Federal R&D tax credit and state tax credit carryforwards for tax return purposes were $251 million, and $256 million, respectively. The Federal R&D tax credit carryforwards expire through 2039. State tax credit carryforwards can be carried forward indefinitely.
As of December 31, 2019, the Company's foreign tax credit carryforwards for U.S. and non-U.S. tax return purposes were $138 million of which a $135 million valuation allowance is placed against non-U.S. foreign tax credits and a $3 million carryforward on the U.S. tax return. The Federal foreign tax credit carryovers expire through 2029.
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, 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. As of December 31, 2018, the total amount of gross unrecognized tax benefits was $48 million, of which $44 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, 2017
$
42,902

Increases related to tax positions taken during prior periods
4,486

Decreases related to tax positions taken during prior periods
(17,922
)
Increases related to tax positions taken during the current period
18,068

Balances as of December 31, 2018
47,534

Increases related to tax positions taken during prior periods
925

Decreases related to tax positions taken during prior periods
(417
)
Increases related to tax positions taken during the current period
18,826

Decreases related to expiration of statute of limitations
(100
)
Balances as of December 31, 2019
$
66,768


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, 2017, and 2018. The 2009 through 2018 state tax returns are subject to examination by state tax authorities. The Company is also currently under examination in the UK for 2018. The company has no other significant foreign jurisdiction audits underway. The years 2014 through 2018 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.
v3.19.3.a.u2
Employee Benefit Plan
12 Months Ended
Dec. 31, 2019
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 2019, 2018 and 2017, the Company’s matching contributions totaled $47 million, $27 million and $20 million, respectively.
v3.19.3.a.u2
Segment and Geographic Information
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment and Geographic Information
Segment and Geographic Information
Effective in the fourth quarter of 2019, the Company operates as one operating segment. The Company's chief operating decision maker ("CODM") is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources.
Historically, the Company reported contribution profit (loss) for three segments: Domestic streaming, International streaming and Domestic DVD, which was reflective of how the Company’s CODM reviewed financial information for purposes of making operating decisions, assessing financial performance and allocating resources. Because the Company increasingly obtains multi-territory or global rights for streaming content, contribution profit (loss) on a regional basis is no longer a meaningful metric reviewed by the CODM or used in the allocation of resources. Instead, the CODM now focuses on the Company's global operating margin as the primary measure of profitability and basis for allocation of resources.
Total U.S. revenues were $9.5 billion, $8.0 billion and $6.6 billion for the years ended December 31, 2019, 2018 and 2017, respectively. See Note 1 Revenue Recognition for additional information about streaming revenue by region.
The Company's long-lived tangible assets were located as follows:
 
As of December 31,
 
2019
 
2018
 
(in thousands)
United States
$
1,503,459

 
$
381,947

International
594,047

 
36,334


v3.19.3.a.u2
Selected Quarterly Financial Data (Unaudited)
12 Months Ended
Dec. 31, 2019
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)
2019
 
Total revenues
$
5,467,434

 
$
5,244,905

 
$
4,923,116

 
$
4,520,992

Gross profit
2,001,411

 
2,146,986

 
1,917,459

 
1,650,378

Net income
586,970

 
665,244

 
270,650

 
344,052

Earnings per share:
 
 
 
 
 
 
 
Basic
$
1.34

 
$
1.52

 
$
0.62

 
$
0.79

Diluted
1.30

 
1.47

 
0.60

 
0.76

2018
 
 
 
 
 
 
 
Total revenues
$
4,186,841

 
$
3,999,374

 
$
3,907,270

 
$
3,700,856

Gross profit
1,453,441

 
1,468,246

 
1,504,839

 
1,400,277

Net income
133,934

 
402,835

 
384,349

 
290,124

Earnings per share:
 
 
 
 
 
 
 
Basic
$
0.31

 
$
0.92

 
$
0.88

 
$
0.67

Diluted
0.30

 
0.89

 
0.85

 
0.64


v3.19.3.a.u2
Organization and Summary of Significant Accounting Policies (Policy)
12 Months Ended
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Use of Estimates
Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted 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 streaming 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.
Recent accounting pronouncements
Recently adopted accounting pronouncements
In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases (Topic 842) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under prior GAAP. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. The Company adopted ASU 2016-02 in the first quarter of 2019 utilizing the modified retrospective transition method through a cumulative-effect adjustment at the beginning of the first quarter of 2019. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any existing leases as of the adoption date. The Company did not elect to apply the hindsight practical expedient when determining lease term and assessing impairment of right-of-use assets. The adoption of ASU 2016-02 on January 1, 2019 resulted in the recognition of right-of-use assets of approximately $743 million, lease liabilities for operating leases of approximately $813 million and a cumulative-effect adjustment on retained earnings of $2 million on its Consolidated Balance Sheets, with no material impact to its Consolidated Statements of Operations. See Note 3 for further information regarding the impact of the adoption of ASU 2016-02 on the Company's financial statements.
In March 2019, the FASB issued ASU 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials, in order to align the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization. ASU 2019-02 also requires that an entity
reassess estimates of the use of a film in a film group and account for any changes prospectively. In addition, ASU 2019-02 requires that an entity test films and license agreements for program material for impairment at a film group level when the film or license agreements are predominantly monetized with other films and license agreements. ASU 2019-02 is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company early adopted ASU 2019-02 in the first quarter of 2019 and as such has included all content assets (licensed and produced) as "Non-current content assets, net" on its Consolidated Balance Sheets, beginning with the period of adoption. There was no material impact to its Consolidated Statements of Operations. See the Company's updated Streaming Content policy below for further details.
Recently issued accounting pronouncements not yet adopted
In June 2016, the FASB issued 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 current GAAP with a methodology that requires consideration of a broader range of information to estimate credit losses. While the Company is continuing to assess the potential impacts of ASU 2016-13, it does not expect ASU 2016-13 to have a material effect on its financial statements.
Cash Equivalents
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.
Streaming Content
Streaming Content
The Company acquires, licenses and produces content, including original programming, in order to offer members unlimited viewing of TV series and films. 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 streaming assets and the changes in related liabilities, are classified within "Net cash used in operating activities" on the Consolidated Statements of Cash Flows.
The Company recognizes content assets (licensed and produced) as “Non-current content assets, net” on the Consolidated Balance Sheets. For licenses, 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 productions, 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 streaming 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
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
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.
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 consumer electronics (“CE”) manufacturers, multichannel video programming distributors (“MVPDs”), mobile operators and internet service providers (“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, but in the case where 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.
Marketing
Marketing
Marketing expenses consist primarily of advertising expenses and certain payments made to the Company’s partners, including CE manufacturers, MVPDs, mobile operators and ISPs. Advertising expenses include promotional activities such as digital and television advertising. Advertising costs are expensed as incurred.
Research and Development
Research and Development
Research 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.
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.
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 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).
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.
Stock-Based Compensation
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.
v3.19.3.a.u2
Organization and Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Streaming Revenue, Paid net Membership Additions, and Ending Paid Memberships by Region
The following tables summarize streaming revenue, paid net membership additions, and ending paid memberships by region for the years December 31, 2019, 2018 and 2017, respectively:

United States and Canada (UCAN)
 
 
As of/ Year Ended December 31,
 
 
2019
 
2018
 
2017
 
 
(in thousands)
Revenues
 
$
10,051,208

 
$
8,281,532

 
$
6,660,859

Paid net membership additions
 
2,905

 
6,335

 
5,512

Paid memberships at end of period
 
67,662

 
64,757

 
58,422


Europe, Middle East, and Africa (EMEA)
 
 
As of/ Year Ended December 31,
 
 
2019
 
2018
 
2017
 
 
(in thousands)
Revenues
 
$
5,543,067

 
$
3,963,707

 
$
2,362,813

Paid net membership additions
 
13,960

 
11,814

 
8,173

Paid memberships at end of period
 
51,778

 
37,818

 
26,004


Latin America (LATAM)
 
 
As of/ Year Ended December 31,
 
 
2019
 
2018
 
2017
 
 
(in thousands)
Revenues
 
$
2,795,434

 
$
2,237,697

 
$
1,642,616

Paid net membership additions
 
5,340

 
6,360

 
5,509

Paid memberships at end of period
 
31,417

 
26,077

 
19,717




Asia-Pacific (APAC)
 
 
As of/ Year Ended December 31,
 
 
2019
 
2018
 
2017
 
 
(in thousands)
Revenues
 
$
1,469,521

 
$
945,816

 
$
575,928

Paid net membership additions
 
5,626

 
4,106

 
2,360

Paid memberships at end of period
 
16,233

 
10,607

 
6,501


Computation of Earnings Per Share The computation of earnings per share is as follows:
 
 
Year ended December 31,
 
2019
 
2018
 
2017
 
(in thousands, except per share data)
Basic earnings per share:
 
 
 
 
 
Net income
$
1,866,916

 
$
1,211,242

 
$
558,929

Shares used in computation:
 
 
 
 
 
Weighted-average common shares outstanding
437,799

 
435,374

 
431,885

Basic earnings per share
$
4.26

 
$
2.78

 
$
1.29

Diluted earnings per share:
 
 
 
 
 
Net income
$
1,866,916

 
$
1,211,242

 
$
558,929

Shares used in computation:
 
 
 
 
 
Weighted-average common shares outstanding
437,799

 
435,374

 
431,885

Employee stock options
13,966

 
15,870

 
14,929

Weighted-average number of shares
451,765

 
451,244

 
446,814

Diluted earnings per share
$
4.13

 
$
2.68

 
$
1.25


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,
 
2019
 
2018
 
2017
 
(in thousands)
Employee stock options
1,588

 
330

 
189


v3.19.3.a.u2
Cash, Cash Equivalents and Restricted Cash (Tables)
12 Months Ended
Dec. 31, 2019
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, 2019 and 2018:
 
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



 
As of December 31, 2018
 
Cash and cash equivalents
 
Non-current Assets
 
Total
 
(in thousands)
Cash
$
2,572,685

 
$
16,260

 
$
2,588,945

Level 1 securities:
 
 
 
 
 
Money market funds
1,221,798

 
1,298

 
1,223,096

 
 
 
 
 
 
 
$
3,794,483

 
$
17,558

 
$
3,812,041


v3.19.3.a.u2
Balance Sheet Components (Tables)
12 Months Ended
Dec. 31, 2019
Balance Sheet Components Disclosure [Abstract]  
Content Assets
Content assets consisted of the following:
 
As of December 31,
 
2019
 
2018
 
(in thousands)
 
 
 
 
Licensed content, net
$
14,703,352

 
$
14,081,463

Produced content, net
 
 
 
Released, less amortization
4,382,685

 
2,403,896

In production
4,750,664

 
3,305,126

In development and pre-production
667,866

 
311,842

 
9,801,215

 
6,020,864

 
 
 
 
Total
$
24,504,567

 
$
20,102,327

 
 
 
 
Current content assets, net
$

 
$
5,151,186

Non-current content assets, net
$
24,504,567

 
$
14,951,141


Schedule of Amortization of Streaming Content Assets
The following table represents the amortization of streaming content assets:
 
Year ended December 31,
 
2019
 
2018
 
2017
 
(in thousands)
Licensed content
$
7,242,799

 
$
6,511,689

 
$
5,680,373

Produced content
1,973,448

 
1,020,399

 
517,444

Total streaming content
$
9,216,247

 
$
7,532,088

 
$
6,197,817





















Property and Equipment, Net
Property and equipment and accumulated depreciation consisted of the following:
 
 
As of December 31,
 
Estimated Useful Lives (in Years)
 
 
2019
 
2018
 
 
 
(in thousands)
 
 
Land
 
$
6,125

 
$
6,125

 
 
Buildings
 
33,141

 
73,468

 
30 years
Leasehold improvements
 
354,999

 
282,028

 
Over life of lease
Furniture and fixtures
 
87,465

 
63,667

 
3-15 years
Information technology
 
243,565

 
224,296

 
3 years
Corporate aircraft
 
108,995

 
62,560

 
8 years
Machinery and equipment
 
46,415

 
55,108

 
3-5 years
Capital work-in-progress
 
100,521

 
19,548

 
 
Property and equipment, gross
 
981,226

 
786,800

 
 
Less: Accumulated depreciation
 
(416,005
)
 
(368,519
)
 
 
Property and equipment, net
 
$
565,221

 
$
418,281

 
 

Information on Right-of-Use Assets and Lease Liabilities
Information related to the Company's right-of-use assets and related lease liabilities were as follows:
 
Year ended December 31,
 
2019
 
(in thousands)
Cash paid for operating lease liabilities
$
192,084

Right-of-use assets obtained in exchange for new operating lease obligations (1)
1,672,462

(1) Balance includes $743 million for operating leases existing on January 1, 2019.
 
As of
 
December 31, 2019
 
 
Weighted-average remaining lease term
8.8 years

Weighted-average discount rate
5.0
%

Maturities of Lease Liabilities
Maturities of lease liabilities as of December 31, 2019 were as follows (in thousands):
Due in 12 month period ended December 31,
2020
$
248,636

2021
246,148

2022
226,020

2023
211,387

2024
194,506

Thereafter
912,457

 
2,039,154

Less imputed interest
(425,920
)
Total lease liabilities
1,613,234

 
 
Current operating lease liabilities
190,622

Non-current operating lease liabilities
1,422,612

Total lease liabilities
$
1,613,234


Other Current Assets
Other current assets consisted of the following:
 
 
As of
 
 
December 31,
2019
 
December 31,
2018
 
 
(in thousands)
Trade receivables
 
$
454,399

 
$
362,712

Prepaid expenses
 
180,999

 
178,833

Other receivables
 
524,669

 
206,921

Total other current assets
 
$
1,160,067

 
$
748,466


v3.19.3.a.u2
Long-term Debt (Tables)
12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
The following table provides a summary of the Company's outstanding long-term debt and the fair values based on quoted market prices in less active markets as of December 31, 2019 and December 31, 2018:

 
 
 
 
 
 
 
 
 
Level 2 Fair Value as of
 
Principal Amount at Par
 
Issuance Date
 
Maturity
 
Interest Due Dates
 
December 31,
2019
 
December 31,
2018
 
(in millions)
 
 
 
 
 
 
 
(in millions)
5.375% Senior Notes
$
500

 
February 2013
 
February 2021
 
February and August
 
$
518

 
$
509

5.500% Senior Notes
700

 
February 2015
 
February 2022
 
April and October
 
744

 
706

5.750% Senior Notes
400

 
February 2014
 
March 2024
 
March and September
 
444

 
407

5.875% Senior Notes
800

 
February 2015
 
February 2025
 
April and October
 
896

 
812

4.375% Senior Notes
1,000

 
October 2016
 
November 2026
 
May and November
 
1,026

 
915

3.625% Senior Notes (1)
1,459

 
May 2017
 
May 2027
 
May and November
 
1,565

 
1,446

4.875% Senior Notes
1,600

 
October 2017
 
April 2028
 
April and October
 
1,670

 
1,464

5.875% Senior Notes
1,900

 
April 2018
 
November 2028
 
May and November
 
2,111

 
1,851

4.625% Senior Notes (2)
1,234

 
October 2018
 
May 2029
 
May and November
 
1,378

 
1,241

6.375% Senior Notes
800

 
October 2018
 
May 2029
 
May and November
 
916

 
797

3.875% Senior Notes (3)
1,346

 
April 2019
 
November 2029
 
June and December
 
1,429

 

5.375% Senior Notes
900

 
April 2019
 
November 2029
 
June and December
 
960

 

3.625% Senior Notes (4)
1,234

 
October 2019
 
June 2030
 
June and December
 
1,273

 

4.875% Senior Notes
1,000

 
October 2019
 
June 2030
 
June and December
 
1,019

 

 
$
14,873

 
 
 
 
 
 
 
 
 
 


(1) Debt is denominated in euro with a €1,300 million principal amount. Total proceeds were $1,421 million
(2) Debt is denominated in euro with a €1,100 million principal amount. Total proceeds were $1,262 million.
(3) Debt is denominated in euro with a €1,200 million principal amount. Total proceeds were $1,343 million.
(4) Debt is denominated in euro with a €1,100 million principal amount. Total proceeds were $1,226 million.
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,
2019
 
December 31, 2018
 
(in thousands)
Less than one year
$
736,969

 
$
538,384

Due after one year and through three years
2,581,471

 
1,550,581

Due after three years and through five years
1,705,201

 
1,646,101

Due after five years
15,699,800

 
11,138,129

Total debt obligations
$
20,723,441

 
$
14,873,195


v3.19.3.a.u2
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Expected Timing of Payments for Streaming Content Obligations
The expected timing of payments for these streaming content obligations is as follows:
 
As of December 31,
 
2019
 
2018
 
(in thousands)
Less than one year
$
8,477,367

 
$
8,611,398

Due after one year and through 3 years
8,352,731

 
8,841,561

Due after 3 years and through 5 years
2,041,340

 
1,684,582

Due after 5 years
618,644

 
148,334

Total streaming content obligations
$
19,490,082

 
$
19,285,875


v3.19.3.a.u2
Stockholders' Equity (Tables)
12 Months Ended
Dec. 31, 2019
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
for Grant
 
Options Outstanding
 
Weighted- Average Remaining Contractual Term (in Years)
 
Aggregate
Intrinsic Value
(in Thousands)
 
Number of
Shares
 
Weighted- Average Exercise Price
(per Share)
 
Balances as of December 31, 2016
13,289,953

 
22,437,347

 
$
44.83

 
 
 
 
Granted
(2,550,038
)
 
2,550,038

 
159.56

 
 
 
 
Exercised

 
(3,338,474
)
 
26.79

 
 
 
 
Expired

 
(1,561
)
 
3.25

 
 
 
 
Balances as of December 31, 2017
10,739,915

 
21,647,350

 
$
61.13

 
 
 
 
Granted
(2,039,974
)
 
2,039,974

 
311.66

 
 
 
 
Exercised

 
(3,205,911
)
 
38.66

 
 
 
 
Expired

 
(2,135
)
 
$
4.60

 
 
 
 
Balances as of December 31, 2018
8,699,941

 
20,479,278

 
$
89.61

 
 
 
 
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

 
5.57
 
$
4,230,013

Vested and exercisable at
December 31, 2019
 
 
20,859,326

 
$
124.28

 
5.57
 
$
4,230,013


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,
 
 
2019
 
2018
 
2017
Dividend yield
 
%
 
%
 
%
Expected volatility
 
37% - 41%

 
40% - 42%

 
34% - 37%

Risk-free interest rate
 
1.74% - 2.74%

 
2.61% - 3.09%

 
2.24% - 2.45%

Suboptimal exercise factor
 
3.07 - 3.23

 
2.80 - 3.01

 
2.48 - 2.63

Valuation data:
 
 
 
 
 
 
Weighted-average fair value (per share)
 
$
156.60

 
$
157.19

 
$
71.45

Total stock-based compensation expense (in thousands)
 
405,376

 
320,657

 
182,209

Total income tax impact on provision (in thousands)
 
90,856

 
67,575

 
61,842


Schedule of Changes in Accumulated Other Comprehensive Loss
The following table summarizes the changes in accumulated balances of other comprehensive loss, net of tax:

 
Foreign currency
 
(in thousands)
Balances as of December 31, 2017
$
(20,557
)
Other comprehensive income before reclassifications
975

Net decrease in accumulated other comprehensive loss
975

Balances as of December 31, 2018
$
(19,582
)
Other comprehensive loss before reclassifications
(3,939
)
Net increase in accumulated other comprehensive loss
(3,939
)
Balances as of December 31, 2019
$
(23,521
)

v3.19.3.a.u2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Taxes
Income before provision for income taxes was as follows:
 
Year Ended December 31,
 
2019
 
2018
 
2017
 
(in thousands)
United States
$
1,719,326

 
$
845,402

 
$
144,100

Foreign
342,905

 
381,056

 
341,221

Income before income taxes
$
2,062,231

 
$
1,226,458

 
$
485,321


Components of Provision for Income Taxes
The components of provision for (benefit from) income taxes for all periods presented were as follows:
 
 
Year Ended December 31,
 
2019
 
2018
 
2017
 
(in thousands)
Current tax provision:
 
 
 
 
 
Federal
$
21,498

 
$
(22,176
)
 
$
54,245

State
45,228

 
(10,234
)
 
(7,601
)
Foreign
223,328

 
133,146

 
88,436

Total current
290,054

 
100,736

 
135,080

Deferred tax provision:
 
 
 
 
 
Federal
(28,003
)
 
(37,396
)
 
(153,963
)
State
(54,507
)
 
(52,391
)
 
(52,695
)
Foreign
(12,229
)
 
4,267

 
(2,030
)
Total deferred
(94,739
)
 
(85,520
)
 
(208,688
)
Provision for (benefit from) income taxes
$
195,315

 
$
15,216

 
$
(73,608
)

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,
 
2019
 
2018
 
2017
 
(in thousands)
Expected tax expense at U.S. Federal statutory rates
$
433,059

 
$
257,556

 
$
169,860

State income taxes, net of Federal income tax effect
47,909

 
33,611

 
6,404

Foreign earnings at other than U.S. rates
56,969

 
63,519

 
(87,514
)
Federal and California R&D tax credits
(134,523
)
 
(140,749
)
 
(79,868
)
Excess tax benefits on stock-based compensation
(148,693
)
 
(191,323
)
 
(157,888
)
Impact of the Tax Cuts and Jobs Act of 2017
 
 
 
 
 
Rate Change / Transition Tax

 
(71,516
)
 
79,077

Tax effects of the Tax Cuts and Jobs Act
(127,534
)
 
43,099

 

Global corporate structure simplification
35,939

 

 

Nondeductible Officers Compensation
24,111

 
14,377

 
28

Other
8,078

 
6,642

 
(3,707
)
Provision for (benefit from) income taxes
$
195,315

 
$
15,216

 
$
(73,608
)
Effective Tax Rate
9
%
 
1
%
 
(15
)%

Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities were as follows:
 
 
As of December 31,
 
2019
 
2018
 
(in thousands)
Deferred tax assets:
 
 
 
Stock-based compensation
$
258,376

 
$
190,451

Federal and California tax R&D credits
408,715

 
369,023

Foreign tax credits
137,818

 
218,026

Accruals and reserves
42,450

 
36,396

Operating leases
349,208

 

Other
6,510

 
27,203

Gross deferred tax assets
1,203,077

 
841,099

Depreciation & amortization
(80,921
)
 
(151,678
)
Operating leases
(329,168
)
 

Gross deferred tax liabilities
(410,089
)
 
(151,678
)
Valuation allowance
(134,782
)
 
(124,996
)
Net deferred tax assets
$
658,206

 
$
564,425


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, 2017
$
42,902

Increases related to tax positions taken during prior periods
4,486

Decreases related to tax positions taken during prior periods
(17,922
)
Increases related to tax positions taken during the current period
18,068

Balances as of December 31, 2018
47,534

Increases related to tax positions taken during prior periods
925

Decreases related to tax positions taken during prior periods
(417
)
Increases related to tax positions taken during the current period
18,826

Decreases related to expiration of statute of limitations
(100
)
Balances as of December 31, 2019
$
66,768


v3.19.3.a.u2
Segment Information (Tables)
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Long-lived Assets by Geographic Areas
The Company's long-lived tangible assets were located as follows:
 
As of December 31,
 
2019
 
2018
 
(in thousands)
United States
$
1,503,459

 
$
381,947

International
594,047

 
36,334


v3.19.3.a.u2
Selected Quarterly Financial Data (Tables)
12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Data
 
December 31
 
September 30
 
June 30
 
March 31
 
(in thousands, except for per share data)
2019
 
Total revenues
$
5,467,434

 
$
5,244,905

 
$
4,923,116

 
$
4,520,992

Gross profit
2,001,411

 
2,146,986

 
1,917,459

 
1,650,378

Net income
586,970

 
665,244

 
270,650

 
344,052

Earnings per share:
 
 
 
 
 
 
 
Basic
$
1.34

 
$
1.52

 
$
0.62

 
$
0.79

Diluted
1.30

 
1.47

 
0.60

 
0.76

2018
 
 
 
 
 
 
 
Total revenues
$
4,186,841

 
$
3,999,374

 
$
3,907,270

 
$
3,700,856

Gross profit
1,453,441

 
1,468,246

 
1,504,839

 
1,400,277

Net income
133,934

 
402,835

 
384,349

 
290,124

Earnings per share:
 
 
 
 
 
 
 
Basic
$
0.31

 
$
0.92

 
$
0.88

 
$
0.67

Diluted
0.30

 
0.89

 
0.85

 
0.64


v3.19.3.a.u2
Organization and Summary of Significant Accounting Policies (Narrative) (Details)
$ in Thousands, member in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
USD ($)
country
member
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2019
USD ($)
country
member
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Jan. 01, 2019
USD ($)
Jan. 01, 2017
USD ($)
Organization And Summary Of Significant Accounting Policies [Line Items]                          
Number of DVD subscription members (over) | member 2,000,000               2,000,000        
Number of streaming members (over) | member 167               167        
Number of countries (over) | country 190               190        
Operating lease right-of-use assets $ 1,532,000               $ 1,532,000        
Operating lease liabilities 1,613,234               $ 1,613,234        
Cumulative Effect Adjustment of ASU                       $ 2,474 $ 43,585
Content assets amortization period cap                 10 years        
Average produced content asset amortization percentage (over)                 90.00%        
Average produced content asset amortization period                 4 years        
Revenues 5,467,434 $ 5,244,905 $ 4,923,116 $ 4,520,992 $ 4,186,841 $ 3,999,374 $ 3,907,270 $ 3,700,856 $ 20,156,447 $ 15,794,341 $ 11,692,713    
Deferred revenue $ 924,745       $ 760,899       924,745 760,899      
Increase in deferred revenue                 163,846 142,277 177,974    
Advertising expense                 1,879,000 1,808,000 1,091,000    
Technology and development                 1,673,000 1,218,000 981,000    
Foreign currency remeasurement loss (gain) on long-term debt                 (45,576) (73,953) 140,790    
Interest and Other Income (Expense)                          
Organization And Summary Of Significant Accounting Policies [Line Items]                          
Foreign currency remeasurement loss (gain) on long-term debt                 $ (7,000) 1,000 128,000    
Maximum                          
Organization And Summary Of Significant Accounting Policies [Line Items]                          
Property and equipment estimated useful life                 30 years        
ASU 2016-02                          
Organization And Summary Of Significant Accounting Policies [Line Items]                          
Operating lease right-of-use assets                       743,000  
Operating lease liabilities                       813,000  
Retained Earnings                          
Organization And Summary Of Significant Accounting Policies [Line Items]                          
Cumulative Effect Adjustment of ASU                       2,474 $ 43,585
Retained Earnings | ASU 2016-02                          
Organization And Summary Of Significant Accounting Policies [Line Items]                          
Cumulative Effect Adjustment of ASU                       $ 2,000  
United States                          
Organization And Summary Of Significant Accounting Policies [Line Items]                          
Revenues                 $ 9,500,000 8,000,000 6,600,000    
DVD                          
Organization And Summary Of Significant Accounting Policies [Line Items]                          
Revenues                 $ 300,000 $ 400,000 $ 500,000    
v3.19.3.a.u2
Organization and Summary of Significant Accounting Policies Organization and Summary of Significant Accounting Policies (Revenue and Membership Information) (Details)
membership in Thousands, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2019
USD ($)
membership
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
membership
Sep. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2019
USD ($)
membership
Dec. 31, 2018
USD ($)
membership
Dec. 31, 2017
USD ($)
membership
Disaggregation of Revenue [Line Items]                      
Revenues | $ $ 5,467,434 $ 5,244,905 $ 4,923,116 $ 4,520,992 $ 4,186,841 $ 3,999,374 $ 3,907,270 $ 3,700,856 $ 20,156,447 $ 15,794,341 $ 11,692,713
United States and Canada                      
Disaggregation of Revenue [Line Items]                      
Paid net membership additions (in memberships)                 2,905 6,335 5,512
Paid memberships at end of period (in memberships) 67,662       64,757       67,662 64,757 58,422
Europe, Middle East, and Africa                      
Disaggregation of Revenue [Line Items]                      
Paid net membership additions (in memberships)                 13,960 11,814 8,173
Paid memberships at end of period (in memberships) 51,778       37,818       51,778 37,818 26,004
Latin America                      
Disaggregation of Revenue [Line Items]                      
Paid net membership additions (in memberships)                 5,340 6,360 5,509
Paid memberships at end of period (in memberships) 31,417       26,077       31,417 26,077 19,717
Asia-Pacific                      
Disaggregation of Revenue [Line Items]                      
Paid net membership additions (in memberships)                 5,626 4,106 2,360
Paid memberships at end of period (in memberships) 16,233       10,607       16,233 10,607 6,501
Streaming | United States and Canada                      
Disaggregation of Revenue [Line Items]                      
Revenues | $                 $ 10,051,208 $ 8,281,532 $ 6,660,859
Streaming | Europe, Middle East, and Africa                      
Disaggregation of Revenue [Line Items]                      
Revenues | $                 5,543,067 3,963,707 2,362,813
Streaming | Latin America                      
Disaggregation of Revenue [Line Items]                      
Revenues | $                 2,795,434 2,237,697 1,642,616
Streaming | Asia-Pacific                      
Disaggregation of Revenue [Line Items]                      
Revenues | $                 $ 1,469,521 $ 945,816 $ 575,928
v3.19.3.a.u2
Organization and Summary of Significant Accounting Policies (Computation of Net Income Per Share) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Basic earnings per share:                      
Net income $ 586,970 $ 665,244 $ 270,650 $ 344,052 $ 133,934 $ 402,835 $ 384,349 $ 290,124 $ 1,866,916 $ 1,211,242 $ 558,929
Weighted-average common shares outstanding (in shares)                 437,799 435,374 431,885
Basic earnings per share (in USD per share) $ 1.34 $ 1.52 $ 0.62 $ 0.79 $ 0.31 $ 0.92 $ 0.88 $ 0.67 $ 4.26 $ 2.78 $ 1.29
Diluted earnings per share:                      
Net income $ 586,970 $ 665,244 $ 270,650 $ 344,052 $ 133,934 $ 402,835 $ 384,349 $ 290,124 $ 1,866,916 $ 1,211,242 $ 558,929
Shares used in computation:                      
Weighted-average common shares outstanding (in shares)                 437,799 435,374 431,885
Employee stock options (in shares)                 13,966 15,870 14,929
Weighted-average number of shares (in shares)                 451,765 451,244 446,814
Diluted earnings per share (in USD per share) $ 1.30 $ 1.47 $ 0.60 $ 0.76 $ 0.30 $ 0.89 $ 0.85 $ 0.64 $ 4.13 $ 2.68 $ 1.25
v3.19.3.a.u2
Organization and Summary of Significant Accounting Policies (Summary of Potential Common Shares Excluded From Diluted Calculation) (Details) - shares
shares in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Employee stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Employee stock options 1,588 330 189
v3.19.3.a.u2
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash $ 5,043,786 $ 3,812,041 $ 2,822,795 $ 1,467,576
Cash        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 3,127,549 2,588,945    
Level 1 securities | Money market funds        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 1,616,237 1,223,096    
Level 2 securities | Foreign Time Deposits        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 300,000      
Cash and cash equivalents        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 5,018,437 3,794,483    
Cash and cash equivalents | Cash        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 3,103,525 2,572,685    
Cash and cash equivalents | Level 1 securities | Money market funds        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 1,614,912 1,221,798    
Cash and cash equivalents | Level 2 securities | Foreign Time Deposits        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 300,000      
Other Current Assets        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 1,863      
Other Current Assets | Cash        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 1,863      
Other Current Assets | Level 1 securities | Money market funds        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 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 23,486 17,558    
Non-current Assets | Cash        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 22,161 16,260    
Non-current Assets | Level 1 securities | Money market funds        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 1,325 $ 1,298    
Non-current Assets | Level 2 securities | Foreign Time Deposits        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash $ 0      
v3.19.3.a.u2
Balance Sheet Components - Components of Content Assets (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]      
Total content assets, net $ 24,504,567 $ 20,102,327  
Current content assets, net 0 5,151,186  
Non-current content assets, net 24,504,567 14,951,141  
Amortization of streaming content assets 9,216,247 7,532,088 $ 6,197,817
Licensed content, net      
Finite-Lived Intangible Assets [Line Items]      
Net content 14,703,352 14,081,463  
Unamortized cost in year one 5,793,000    
Unamortized cost in year two 3,733,000    
Unamortized cost in year three 2,518,000    
Amortization of streaming content assets 7,242,799 6,511,689 5,680,373
Produced content, net      
Finite-Lived Intangible Assets [Line Items]      
Net content 4,382,685 2,403,896  
In production 4,750,664 3,305,126  
In development and pre-production 667,866 311,842  
Total content assets, net 9,801,215 6,020,864  
Unamortized cost in year one 1,552,000    
Unamortized cost in year two 1,187,000    
Unamortized cost in year three 882,000    
Amortization of streaming content assets $ 1,973,448 $ 1,020,399 $ 517,444
v3.19.3.a.u2
Balance Sheet Components - Property and Equipment and Accumulated Depreciation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 981,226 $ 786,800
Less: Accumulated depreciation (416,005) (368,519)
Property and equipment, net $ 565,221 418,281
Maximum    
Property, Plant and Equipment [Line Items]    
Estimated Useful Lives 30 years  
Land    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 6,125 6,125
Buildings    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 33,141 73,468
Estimated Useful Lives 30 years  
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 354,999 282,028
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 87,465 63,667
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 $ 243,565 224,296
Estimated Useful Lives 3 years  
Corporate aircraft    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 108,995 62,560
Estimated Useful Lives 8 years  
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 46,415 55,108
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 $ 100,521 $ 19,548
v3.19.3.a.u2
Balance Sheet Components - Leases (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Jan. 01, 2019
Lessee, Lease, Description [Line Items]        
Operating lease right-of-use assets $ 1,532,000      
Operating lease liabilities 1,613,234      
Lease Cost:        
Lease costs 448,000      
Operating lease cost 218,000      
Short-term lease cost 230,000      
Rent expense   $ 107,000 $ 75,000  
Cash paid for operating lease liabilities 192,084      
Right-of-use assets obtained in exchange for new operating lease obligations $ 1,672,462      
Weighted-average remaining lease term 8 years 9 months 18 days      
Weighted-average discount rate 5.00%      
Operating lease, liability, leases not commenced $ 699,000      
ASU 2016-02        
Lessee, Lease, Description [Line Items]        
Operating lease right-of-use assets       $ 743,000
Operating lease liabilities       $ 813,000
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 15 years      
Lease Cost:        
Lease not yet commenced, term of contract 15 years      
v3.19.3.a.u2
Balance Sheet Components - Lease Maturities (Details)
$ in Thousands
Dec. 31, 2019
USD ($)
Leases [Abstract]  
2020 $ 248,636
2021 246,148
2022 226,020
2023 211,387
2024 194,506
Thereafter 912,457
Total lease liabilities 2,039,154
Less imputed interest (425,920)
Total lease liabilities 1,613,234
Current operating lease liabilities 190,622
Non-current operating lease liabilities $ 1,422,612
v3.19.3.a.u2
Balance Sheet Components - Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Balance Sheet Components Disclosure [Abstract]    
Trade receivables $ 454,399 $ 362,712
Prepaid expenses 180,999 178,833
Other receivables 524,669 206,921
Total other current assets $ 1,160,067 $ 748,466
v3.19.3.a.u2
Long-term Debt (Narrative) (Details)
12 Months Ended
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2019
EUR (€)
Dec. 31, 2019
USD ($)
Debt Instrument [Line Items]          
Aggregate outstanding principal   $ 10,360,058,000     $ 14,759,260,000
Debt issuance cost         114,000,000
Foreign currency remeasurement gain on long-term debt $ 45,576,000 $ 73,953,000 $ (140,790,000)    
Senior Notes          
Debt Instrument [Line Items]          
Long-term notes denominated in foreign currency       € 4,700,000,000 $ 14,873,000,000
Foreign currency remeasurement gain on long-term debt $ 46,000,000        
Redemption price, percent of outstanding principal 101.00%        
v3.19.3.a.u2
Long-term Debt (Summary of Long-term Debt) (Details) - Senior Notes
12 Months Ended
Dec. 31, 2019
USD ($)
Dec. 31, 2019
EUR (€)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Debt Instrument [Line Items]        
Face amount   € 4,700,000,000 $ 14,873,000,000  
5.375% Senior Notes        
Debt Instrument [Line Items]        
Interest rate   5.375% 5.375%  
Face amount     $ 500,000,000  
Long-term debt, fair value     $ 518,000,000 $ 509,000,000
5.500% Senior Notes        
Debt Instrument [Line Items]        
Interest rate   5.50% 5.50%  
Face amount     $ 700,000,000  
Long-term debt, fair value     $ 744,000,000 706,000,000
5.750% Senior Notes        
Debt Instrument [Line Items]        
Interest rate   5.75% 5.75%  
Face amount     $ 400,000,000  
Long-term debt, fair value     $ 444,000,000 407,000,000
5.875% Senior Notes        
Debt Instrument [Line Items]        
Interest rate   5.875% 5.875%  
Face amount     $ 800,000,000  
Long-term debt, fair value     $ 896,000,000 812,000,000
4.375% Senior Notes        
Debt Instrument [Line Items]        
Interest rate   4.375% 4.375%  
Face amount     $ 1,000,000,000  
Long-term debt, fair value     $ 1,026,000,000 915,000,000
3.625% Senior Notes        
Debt Instrument [Line Items]        
Interest rate   3.625% 3.625%  
Face amount   € 1,300,000,000 $ 1,459,000,000  
Long-term debt, fair value     $ 1,565,000,000 1,446,000,000
Proceeds from convertible debt $ 1,421,000,000      
4.875% Senior Notes        
Debt Instrument [Line Items]        
Interest rate   4.875% 4.875%  
Face amount     $ 1,600,000,000  
Long-term debt, fair value     $ 1,670,000,000 1,464,000,000
5.875% Senior Notes        
Debt Instrument [Line Items]        
Interest rate   5.875% 5.875%  
Face amount     $ 1,900,000,000  
Long-term debt, fair value     $ 2,111,000,000 1,851,000,000
4.625% Senior Notes        
Debt Instrument [Line Items]        
Interest rate   4.625% 4.625%  
Face amount   € 1,100,000,000 $ 1,234,000,000  
Long-term debt, fair value     $ 1,378,000,000 1,241,000,000
Proceeds from convertible debt 1,262,000,000      
6.375% Senior Notes        
Debt Instrument [Line Items]        
Interest rate   6.375% 6.375%  
Face amount     $ 800,000,000  
Long-term debt, fair value     $ 916,000,000 797,000,000
3.875% Senior Notes        
Debt Instrument [Line Items]        
Interest rate   3.875% 3.875%  
Face amount   € 1,200,000,000 $ 1,346,000,000  
Long-term debt, fair value     $ 1,429,000,000 0
Proceeds from convertible debt 1,343,000,000      
5.375% Senior Notes        
Debt Instrument [Line Items]        
Interest rate   5.375% 5.375%  
Face amount     $ 900,000,000  
Long-term debt, fair value     $ 960,000,000 0
3.625% Senior Notes        
Debt Instrument [Line Items]        
Interest rate   3.625% 3.625%  
Face amount   € 1,100,000,000 $ 1,234,000,000  
Long-term debt, fair value     $ 1,273,000,000 0
Proceeds from convertible debt $ 1,226,000,000      
4.875% Senior Notes        
Debt Instrument [Line Items]        
Interest rate   4.875% 4.875%  
Face amount     $ 1,000,000,000  
Long-term debt, fair value     $ 1,019,000,000 $ 0
v3.19.3.a.u2
Long-term Debt (Maturities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Debt Disclosure [Abstract]    
Less than one year $ 736,969 $ 538,384
Due after one year and through three years 2,581,471 1,550,581
Due after three years and through five years 1,705,201 1,646,101
Due after five years 15,699,800 11,138,129
Total debt obligations $ 20,723,441 $ 14,873,195
v3.19.3.a.u2
Long-term Debt (Revolving Credit Facility) (Details) - Revolving Credit Facility - USD ($)
12 Months Ended
Dec. 31, 2019
Mar. 29, 2019
Jul. 31, 2017
Line of Credit Facility [Line Items]      
Line of credit facility, maximum borrowing capacity   $ 750,000,000 $ 500,000,000
Line of credit facility, additional maximum borrowing capacity     $ 250,000,000
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%    
v3.19.3.a.u2
Commitments and Contingencies (Streaming Content) (Narrative) (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Contractual Obligation [Line Items]    
Total streaming content obligations $ 19,490,082 $ 19,285,875
Current content liabilities 4,413,561 4,681,562
Non-current content liabilities 3,334,323 3,759,026
Unrecorded streaming obligations 11,800,000 10,800,000
Current Content Liabilities    
Contractual Obligation [Line Items]    
Current content liabilities 4,400,000 4,700,000
Non-current Content Liabilities    
Contractual Obligation [Line Items]    
Non-current content liabilities $ 3,300,000 $ 3,800,000
v3.19.3.a.u2
Commitments and Contingencies (Expected Timing of Payments for Commitments) (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]    
Less than one year $ 8,477,367 $ 8,611,398
Due after one year and through 3 years 8,352,731 8,841,561
Due after 3 years and through 5 years 2,041,340 1,684,582
Due after 5 years 618,644 148,334
Total streaming content obligations $ 19,490,082 $ 19,285,875
v3.19.3.a.u2
Stockholders' Equity (Voting Rights) (Narrative) (Details)
12 Months Ended
Dec. 31, 2019
vote
Stockholders' Equity Note [Abstract]  
Number of voting rights per share 1
v3.19.3.a.u2
Stockholders' Equity (Stock Option Plans) (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Stockholders' Equity Note [Abstract]      
Total intrinsic value of options exercised $ 666 $ 863 $ 464
Cash received from option exercised $ 72 $ 125 $ 88
Expiration period 10 years    
v3.19.3.a.u2
Stockholders' Equity (Summary of Activity Related to Stock Option Plans) (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]      
Shares Available for Grant, Beginning Balances 8,699,941 10,739,915 13,289,953
Options Outstanding, Number of Shares, Beginning Balances 20,479,278 21,647,350 22,437,347
Options Outstanding, Number of Shares, Granted 2,588,380 2,039,974 2,550,038
Options Outstanding, Number of Shares, Exercised (2,208,052) (3,205,911) (3,338,474)
Options Outstanding, Number of Shares, Expired (280) (2,135) (1,561)
Shares Available for Grant, Ending Balances 6,111,561 8,699,941 10,739,915
Options Outstanding, Number of Shares, Ending Balances 20,859,326 20,479,278 21,647,350
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]      
Options Outstanding, Weighted-Average Exercise Price, Beginning Balances (in USD per share) $ 89.61 $ 61.13 $ 44.83
Options Outstanding, Weighted-Average Exercise Price, Granted (in USD per share) 320.66 311.66 159.56
Options Outstanding, Weighted-Average Exercise Price, Exercised (in USD per share) 32.88 38.66 26.79
Options Outstanding, Weighted-Average Exercise Price, Expired (in USD per share) 6.74 4.60 3.25
Options Outstanding, Weighted-Average Exercise Price, Ending Balances (in USD per share) $ 124.28 $ 89.61 $ 61.13
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]      
Options Outstanding, Number of Shares, Vested and exercisable 20,859,326    
Options Outstanding, Weighted-Average Exercise Price, Vested and exercisable (in USD per share) $ 124.28    
Weighted-Average Remaining Contractual Term, Vested and exercisable 5 years 6 months 25 days    
Aggregate Intrinsic Value, Vested and exercisable $ 4,230,013    
v3.19.3.a.u2
Stockholders' Equity (Summary of Assumptions Used to Value Stock Option Grants) (Details)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2019
USD ($)
$ / shares
Dec. 31, 2018
USD ($)
$ / shares
Dec. 31, 2017
USD ($)
$ / shares
Stockholders' Equity Note [Abstract]      
Dividend yield 0.00% 0.00% 0.00%
Expected volatility, minimum 37.00% 40.00% 34.00%
Expected volatility, maximum 41.00% 42.00% 37.00%
Risk-free interest rate, minimum 1.74% 2.61% 2.24%
Risk-free interest rate, maximum 2.74% 3.09% 2.45%
Suboptimal exercise factor, minimum 3.07 2.80 2.48
Suboptimal exercise factor, maximum 3.23 3.01 2.63
Valuation data:      
Weighted-average fair value (in USD per share) | $ / shares $ 156.60 $ 157.19 $ 71.45
Total stock-based compensation expense $ 405,376 $ 320,657 $ 182,209
Total income tax impact on provision $ 90,856 $ 67,575 $ 61,842
v3.19.3.a.u2
Stockholders' Equity Stockholders' Equity (Accumulated Other Comprehensive Loss) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning Balance $ 5,238,765 $ 3,581,956
Ending Balance 7,582,157 5,238,765
Foreign Currency    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning Balance (19,582) (20,557)
Other comprehensive income (loss) before reclassifications (3,939) 975
Net decrease (increase) in accumulated other comprehensive loss (3,939) 975
Ending Balance $ (23,521) $ (19,582)
v3.19.3.a.u2
Income Taxes (Schedule of Income before Income Taxes) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]      
United States $ 1,719,326 $ 845,402 $ 144,100
Foreign 342,905 381,056 341,221
Income before income taxes $ 2,062,231 $ 1,226,458 $ 485,321
v3.19.3.a.u2
Income Taxes (Components of Provision for Income Taxes) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Current tax provision:      
Federal $ 21,498 $ (22,176) $ 54,245
State 45,228 (10,234) (7,601)
Foreign 223,328 133,146 88,436
Total current 290,054 100,736 135,080
Deferred tax provision:      
Federal (28,003) (37,396) (153,963)
State (54,507) (52,391) (52,695)
Foreign (12,229) 4,267 (2,030)
Total deferred (94,739) (85,520) (208,688)
Provision for (benefit from) income taxes $ 195,315 $ 15,216 $ (73,608)
v3.19.3.a.u2
Income Taxes (Reconciliation of Provision for Income Taxes) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]      
Expected tax expense at U.S. Federal statutory rates $ 433,059 $ 257,556 $ 169,860
State income taxes, net of Federal income tax effect 47,909 33,611 6,404
Foreign earnings at other than U.S. rates 56,969 63,519 (87,514)
Federal and California R&D tax credits (134,523) (140,749) (79,868)
Excess tax benefits on stock-based compensation (148,693) (191,323) (157,888)
Impact of the Tax Cuts and Jobs Act of 2017      
Rate Change / Transition Tax 0 (71,516) 79,077
Tax effects of the Tax Cuts and Jobs Act (127,534) 43,099 0
Global corporate structure simplification 35,939 0 0
Nondeductible Officers Compensation 24,111 14,377 28
Other 8,078 6,642 (3,707)
Provision for (benefit from) income taxes $ 195,315 $ 15,216 $ (73,608)
Effective Tax Rate 9.00% 1.00% (15.00%)
v3.19.3.a.u2
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Deferred tax assets (liabilities):    
Stock-based compensation $ 258,376 $ 190,451
Federal and California tax R&D credits 408,715 369,023
Foreign tax credits 137,818 218,026
Accruals and reserves 42,450 36,396
Operating leases 349,208 0
Other 6,510 27,203
Gross deferred tax assets 1,203,077 841,099
Depreciation & amortization (80,921) (151,678)
Operating leases (329,168) 0
Gross deferred tax liabilities 410,089 151,678
Valuation allowance (134,782) (124,996)
Net deferred tax assets $ 658,206 $ 564,425
v3.19.3.a.u2
Income Taxes (Narrative) (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Operating Loss Carryforwards [Line Items]      
Valuation allowance $ 134,782 $ 124,996  
Foreign tax credits 137,818 218,026  
Valuation allowance 135,000    
Unrecognized tax benefits 66,768 47,534 $ 42,902
Reduction in provision for income taxes due to impact of effective tax rate 57,000 $ 44,000  
Federal tax authority      
Operating Loss Carryforwards [Line Items]      
Tax credit carryforward, amount 251,000    
Foreign tax credits 3,000    
State tax authority      
Operating Loss Carryforwards [Line Items]      
Tax credit carryforward, amount $ 256,000    
v3.19.3.a.u2
Income Taxes (Summary of Changes in Unrecognized Tax Benefits) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]    
Beginning Balance $ 47,534 $ 42,902
Increases related to tax positions taken during prior periods 925 4,486
Decreases related to tax positions taken during prior periods (417) (17,922)
Increases related to tax positions taken during the current period 18,826 18,068
Decreases related to expiration of statute of limitations (100)  
Ending Balance $ 66,768 $ 47,534
v3.19.3.a.u2
Employee Benefit Plan (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Retirement Benefits [Abstract]      
Eligible employees maximum contribution percentage 80.00%    
Contributions by employer $ 47 $ 27 $ 20
v3.19.3.a.u2
Segment Information (Narrative) (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2019
USD ($)
segment
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Segment Reporting [Abstract]                      
Number of reportable segments | segment                 3    
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenues $ 5,467,434 $ 5,244,905 $ 4,923,116 $ 4,520,992 $ 4,186,841 $ 3,999,374 $ 3,907,270 $ 3,700,856 $ 20,156,447 $ 15,794,341 $ 11,692,713
United States                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenues                 $ 9,500,000 $ 8,000,000 $ 6,600,000
v3.19.3.a.u2
Segment Information (Long-lived Assets by Geographic Areas) (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 1,503,459 $ 381,947
International    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 594,047 $ 36,334
v3.19.3.a.u2
Selected Quarterly Financial Data (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]                      
Total revenues $ 5,467,434 $ 5,244,905 $ 4,923,116 $ 4,520,992 $ 4,186,841 $ 3,999,374 $ 3,907,270 $ 3,700,856 $ 20,156,447 $ 15,794,341 $ 11,692,713
Gross profit 2,001,411 2,146,986 1,917,459 1,650,378 1,453,441 1,468,246 1,504,839 1,400,277      
Net income $ 586,970 $ 665,244 $ 270,650 $ 344,052 $ 133,934 $ 402,835 $ 384,349 $ 290,124 $ 1,866,916 $ 1,211,242 $ 558,929
Earnings (loss) per share:                      
Basic (in USD per share) $ 1.34 $ 1.52 $ 0.62 $ 0.79 $ 0.31 $ 0.92 $ 0.88 $ 0.67 $ 4.26 $ 2.78 $ 1.29
Diluted (in USD per share) $ 1.30 $ 1.47 $ 0.60 $ 0.76 $ 0.30 $ 0.89 $ 0.85 $ 0.64 $ 4.13 $ 2.68 $ 1.25