NETFLIX INC, 10-K filed on 1/26/2023
Annual Report
v3.22.4
Cover - USD ($)
 12 Months Ended
Dec. 31, 2022
Jun. 30, 2022
Cover [Abstract]    
Document Type 10-K  
Document Annual Report true  
Document Period End Date Dec. 31, 2022  
Current Fiscal Year End Date --12-31  
Document Transition Report false  
Entity File Number 001-35727  
Entity Registrant Name Netflix, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 77-0467272  
Entity Address, Address Line One 121 Albright Way  
Entity Address, City or Town Los Gatos  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 95032  
City Area Code 408  
Local Phone Number 540-3700  
Title of 12(b) Security Common stock, par value $0.001 per share  
Trading Symbol NFLX  
Security Exchange Name NASDAQ  
Entity Well-known Seasoned Issuer Yes  
Entity Voluntary Filers No  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
ICFR Auditor Attestation Flag true  
Entity Shell Company false  
Entity Public Float   $ 76,550,886,077
Entity Common Stock, Shares Outstanding 445,346,776  
Documents Incorporated by Reference Parts of the registrant’s Proxy Statement for the registrant’s 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K.  
Entity Central Index Key 0001065280  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus FY  
Amendment Flag false  
v3.22.4
Audit Information
 12 Months Ended
Dec. 31, 2022
Audit Information [Abstract]  
Auditor Firm ID 42
Auditor Name Ernst & Young LLP
Auditor Location San Jose, California
v3.22.4
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Statement [Abstract]      
Revenues $ 31,615,550 $ 29,697,844 $ 24,996,056
Cost of revenues 19,168,285 17,332,683 15,276,319
Marketing 2,530,502 2,545,146 2,228,362
Technology and development 2,711,041 2,273,885 1,829,600
General and administrative 1,572,891 1,351,621 1,076,486
Operating income 5,632,831 6,194,509 4,585,289
Other income (expense):      
Interest expense (706,212) (765,620) (767,499)
Interest and other income (expense) 337,310 411,214 (618,441)
Income before income taxes 5,263,929 5,840,103 3,199,349
Provision for income taxes (772,005) (723,875) (437,954)
Net income $ 4,491,924 $ 5,116,228 $ 2,761,395
Earnings per share:      
Basic (in USD per share) $ 10.10 $ 11.55 $ 6.26
Diluted (in USD per share) $ 9.95 $ 11.24 $ 6.08
Weighted-average common shares outstanding:      
Basic (in shares) 444,698 443,155 440,922
Diluted (in shares) 451,290 455,372 454,208
v3.22.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Net income $ 4,491,924 $ 5,116,228 $ 2,761,395
Other comprehensive income (loss):      
Foreign currency translation adjustments (176,811) (84,893) 67,919
Comprehensive income $ 4,315,113 $ 5,031,335 $ 2,829,314
v3.22.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash flows from operating activities:      
Net income $ 4,491,924 $ 5,116,228 $ 2,761,395
Adjustments to reconcile net income to net cash provided by operating activities:      
Additions to content assets (16,839,038) (17,702,202) (11,779,284)
Change in content liabilities 179,310 232,898 (757,433)
Amortization of content assets 14,026,132 12,230,367 10,806,912
Depreciation and amortization of property, equipment and intangibles 336,682 208,412 115,710
Stock-based compensation expense 575,452 403,220 415,180
Foreign currency remeasurement loss (gain) on debt (353,111) (430,661) 533,278
Other non-cash items 533,543 376,777 293,126
Deferred income taxes (166,550) 199,548 70,066
Changes in operating assets and liabilities:      
Other current assets (353,834) (369,681) (187,623)
Accounts payable (158,543) 145,115 (41,605)
Accrued expenses and other liabilities (55,513) 180,338 198,183
Deferred revenue 27,356 91,350 193,247
Other non-current assets and liabilities (217,553) (289,099) (194,075)
Net cash provided by operating activities 2,026,257 392,610 2,427,077
Cash flows from investing activities:      
Purchases of property and equipment (407,729) (524,585) (497,923)
Change in other assets 0 (26,919) (7,431)
Acquisitions (757,387) (788,349) 0
Purchases of short-term investments (911,276) 0 0
Net cash used in investing activities (2,076,392) (1,339,853) (505,354)
Cash flows from financing activities:      
Proceeds from issuance of debt 0 0 1,009,464
Debt issuance costs 0 0 (7,559)
Repayments of debt (700,000) (500,000) 0
Proceeds from issuance of common stock 35,746 174,414 235,406
Repurchases of common stock 0 (600,022) 0
Taxes paid related to net share settlement of equity awards 0 (224,168) 0
Net cash provided by (used in) financing activities (664,254) (1,149,776) 1,237,311
Effect of exchange rate changes on cash, cash equivalents and restricted cash (170,140) (86,740) 36,050
Net increase (decrease) in cash, cash equivalents and restricted cash (884,529) (2,183,759) 3,195,084
Cash, cash equivalents and restricted cash, beginning of year 6,055,111 8,238,870 5,043,786
Cash, cash equivalents and restricted cash, end of year 5,170,582 6,055,111 8,238,870
Supplemental disclosure:      
Income taxes paid 811,720 509,265 291,582
Interest paid $ 701,693 $ 763,432 $ 762,904
v3.22.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 5,147,176 $ 6,027,804
Short-term investments 911,276 0
Other current assets 3,208,021 2,042,021
Total current assets 9,266,473 8,069,825
Content assets, net 32,736,713 30,919,539
Property and equipment, net 1,398,257 1,323,453
Other non-current assets 5,193,325 4,271,846
Total assets 48,594,768 44,584,663
Current liabilities:    
Current content liabilities 4,480,150 4,292,967
Accounts payable 671,513 837,483
Accrued expenses and other liabilities 1,514,650 1,449,351
Deferred revenue 1,264,661 1,209,342
Short-term debt 0 699,823
Total current liabilities 7,930,974 8,488,966
Non-current content liabilities 3,081,277 3,094,213
Long-term debt 14,353,076 14,693,072
Other non-current liabilities 2,452,040 2,459,164
Total liabilities 27,817,367 28,735,415
Commitments and contingencies (Note 7)
Stockholders’ equity:    
Preferred stock, $0.001 par value; 10,000,000 shares authorized at December 31, 2022 and December 31, 2021; no shares issued and outstanding at December 31, 2022 and December 31, 2021 0 0
Common stock, $0.001 par value; 4,990,000,000 shares authorized at December 31, 2022 and December 31, 2021; 445,346,776 and 443,963,107 issued and outstanding at December 31, 2022 and December 31, 2021, respectively 4,637,601 4,024,561
Treasury stock at cost (1,564,478 shares at December 31, 2022 and December 31, 2021) (824,190) (824,190)
Accumulated other comprehensive loss (217,306) (40,495)
Retained earnings 17,181,296 12,689,372
Total stockholders’ equity 20,777,401 15,849,248
Total liabilities and stockholders’ equity $ 48,594,768 $ 44,584,663
v3.22.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Dec. 31, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Preferred stock, par value (in USD per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in USD per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 4,990,000,000 4,990,000,000
Common stock, shares issued (in shares) 445,346,776 443,963,107
Common stock, shares outstanding (in shares) 445,346,776 443,963,107
Treasury stock (in shares) 1,564,478 1,564,478
v3.22.4
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
$ in Thousands
Total
Common Stock and Additional Paid-in Capital
Treasury Stock
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Beginning balance (in shares) at Dec. 31, 2019   438,806,649      
Beginning balance at Dec. 31, 2019 $ 7,582,157 $ 2,793,929 $ 0 $ (23,521) $ 4,811,749
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 2,761,395       2,761,395
Other comprehensive income (loss) $ 67,919     67,919  
Issuance of common stock upon exercise of options (in shares) 4,088,612 4,088,612      
Issuance of common stock upon exercise of options $ 238,589 $ 238,589      
Stock-based compensation expense 415,180 $ 415,180      
Ending balance (in shares) at Dec. 31, 2020   442,895,261      
Ending balance at Dec. 31, 2020 11,065,240 $ 3,447,698 0 44,398 7,573,144
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 5,116,228       5,116,228
Other comprehensive income (loss) $ (84,893)     (84,893)  
Issuance of common stock upon exercise of options (in shares) 2,632,324 2,632,324      
Issuance of common stock upon exercise of options $ 173,643 $ 173,643      
Repurchases of common stock (in shares)   (1,182,410)      
Repurchases of common stock (600,022)   (600,022)    
Shares withheld related to net share settlement (in shares)   (382,068)      
Shares withheld related to net share settlement (224,168)   (224,168)    
Stock-based compensation expense $ 403,220 $ 403,220      
Ending balance (in shares) at Dec. 31, 2021 443,963,107 443,963,107      
Ending balance at Dec. 31, 2021 $ 15,849,248 $ 4,024,561 (824,190) (40,495) 12,689,372
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 4,491,924       4,491,924
Other comprehensive income (loss) $ (176,811)     (176,811)  
Issuance of common stock upon exercise of options (in shares) 1,383,669 1,383,669      
Issuance of common stock upon exercise of options $ 37,588 $ 37,588      
Stock-based compensation expense $ 575,452 $ 575,452      
Ending balance (in shares) at Dec. 31, 2022 445,346,776 445,346,776      
Ending balance at Dec. 31, 2022 $ 20,777,401 $ 4,637,601 $ (824,190) $ (217,306) $ 17,181,296
v3.22.4
Organization and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Summary of Significant Accounting Policies Organization and Summary of Significant Accounting Policies
Description of Business
Netflix, Inc. (the “Company”) was incorporated on August 29, 1997 and began operations on April 14, 1998. The Company is one of the world’s leading entertainment services with approximately 231 million paid memberships in over 190 countries enjoying TV series, films and games across a wide variety of genres and languages. Members can play, pause and resume to watch, as much as they want, anytime, anywhere, and can change their plans at any time.
Basis of Presentation
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated.
Use of Estimates
The preparation of consolidated financial statements in conformity with generally accepted accounting principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions include the content asset amortization policy and the recognition and measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results may differ from these estimates.
Recently adopted accounting pronouncements
In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities in accordance with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. The Company adopted ASU 2021-08 in the first quarter of 2022 and the adoption had no material impact to the Company’s consolidated financial statements.
In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, requiring annual disclosures about transactions with a government that are accounted for by analogizing to a grant or contribution accounting model. The new guidance requires the disclosure of the nature of the transactions, the accounting for the transactions, and the effect of the transactions on the financial statements. The Company adopted ASU 2021-10 during the year ended December 31, 2022, which most significantly impacts disclosures of tax incentives related to the production of content.
Cash Equivalents and Short-term Investments
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.
The Company classifies short-term investments, which consist of marketable securities with original maturities in excess of 90 days as available-for-sale. Short-term investments are reported at fair value, with allowances for credit losses included in “Interest and other income (expense)” in the Consolidated Statements of Operations and unrealized gains and losses included in “Accumulated other comprehensive income (loss)” within Stockholders’ equity in the Consolidated Balance Sheets. The Company uses the specific identification method to determine cost in calculating realized gains and losses upon the sale of short-term investments.
Short-term investments are reviewed periodically for allowances for credit losses and impairment. When evaluating the investments, the Company reviews factors such as the extent to which the fair value of the security is less than the amortized cost basis, adverse conditions specifically related to the security, the financial condition of the issuer, the Company’s intent to sell, and whether it would be more likely than not that the Company would be required to sell the investments before the recovery of their amortized cost basis.
Content
The Company acquires, licenses and produces content, including original programming, in order to offer members unlimited viewing of video entertainment. The content licenses are for a fixed fee and specific windows of availability. Payment terms for certain content licenses and the production of content require more upfront cash payments relative to the amortization expense. Payments for content, including additions to content assets and the changes in related liabilities, are classified within "Net cash provided by (used in) operating activities" on the Consolidated Statements of Cash Flows.
The Company recognizes content assets (licensed and produced) as “Content assets, net” on the Consolidated Balance Sheets. For licensed content, the Company capitalizes the fee per title and records a corresponding liability at the gross amount of the liability when the license period begins, the cost of the title is known and the title is accepted and available for streaming. For produced content, the Company capitalizes costs associated with the production, including development costs, direct costs and production overhead. Participations and residuals are expensed in line with the amortization of production costs.
Based on factors including historical and estimated viewing patterns, the Company amortizes the content assets (licensed and produced) in “Cost of revenues” on the Consolidated Statements of Operations over the shorter of each title's contractual window of availability or estimated period of use or ten years, beginning with the month of first availability. The amortization is on an accelerated basis, as the Company typically expects more upfront viewing, and film amortization is more accelerated than TV series amortization. On average, over 90% of a licensed or produced content asset is expected to be amortized within four years after its month of first availability. The Company reviews factors impacting the amortization of the content assets on a regular basis. The Company's estimates related to these factors require considerable management judgment.
In the normal course of business, the Company, or a third-party producing content on the Company's behalf, may qualify for tax incentives through eligible spend on productions. The accounting for tax incentives is dependent on the particular type of incentive, including the nature of the benefit and the location the incentive is earned. In general, tax incentives are realized as cash receipts and may be received prior to or after a title launches on the Company’s service. Upon a title’s launch, any amounts the Company is eligible for through qualified production spend but has not received, are recognized in “Other current assets” or “Other non-current assets” on the Company’s Consolidated Balance Sheets as receivables. Tax incentives are generally accounted for as a reduction to the cost basis of the Company’s content assets (presented in “Content assets, net”) and reduces content amortization over the life of the title (as presented in “Cost of revenues”) on the Consolidated Statement of Operations.
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.
Acquisitions

The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. In addition, uncertain tax positions, tax-related valuation allowances and pre-acquisition contingencies are initially recorded in connection with a business combination as of the acquisition date.
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 credit losses based on historical collection trends, the financial condition of its payment partners, and external market factors. The Company's allowance for credit losses was not material as of December 31, 2022 and December 31, 2021.
Marketing
Marketing expenses consist primarily of advertising expenses and certain payments made to the Company’s partners, including consumer electronics ("CE") manufacturers, multichannel video programming distributors ("MVPDs"), mobile
operators and internet service providers ("ISPs"). Advertising expenses include promotional activities such as digital and television advertising. Advertising costs are expensed as incurred. Advertising expenses were $1,586 million, $1,669 million and $1,447 million for the years ended December 31, 2022, 2021 and 2020, respectively. Marketing expenses also include payroll and related expenses for personnel that support the Company's marketing activities.
Income Taxes
The Company records a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Deferred income taxes are recognized by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as net operating loss and tax credit carryforwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance for any tax benefits for which future realization is uncertain.
The Company did not recognize certain tax benefits from uncertain tax positions within the provision for income taxes. The Company may recognize a tax benefit only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. See Note 10 Income Taxes to the consolidated financial statements for further information regarding income taxes.
Foreign Currency
The functional currency for the Company's subsidiaries is determined based on the primary economic environment in which the subsidiary operates. The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenues and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in cumulative translation adjustment included in "Accumulated other comprehensive income (loss)" in Stockholders’ equity on the Consolidated Balance Sheets.
The Company remeasures monetary assets and liabilities that are not denominated in the functional currency at exchange rates in effect at the end of each period. Gains and losses from these remeasurements are recognized in interest and other income (expense). Foreign currency transactions resulted in a gain of $282 million and $403 million for the years ended December 31, 2022 and 2021, respectively, and a loss of $660 million for the year ended December 31, 2020. These gains and losses were primarily due to the non-cash remeasurement of our Senior Notes denominated in euros and the remeasurement of cash and content liability positions denominated in currencies other than functional currencies.
Stock-Based Compensation
The Company grants non-qualified stock options to its employees on a monthly basis. Stock-based compensation expense is based on the fair value of the options at the grant date and is recognized, net of forfeitures, over the requisite service period. See Note 9 Stockholders' Equity to the consolidated financial statements for further information regarding stock-based compensation.
v3.22.4
Revenue Recognition
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The Company's primary source of revenues is from monthly membership fees. Members are billed in advance of the start of their monthly membership and revenues are recognized ratably over each monthly membership period. Revenues are presented net of the taxes that are collected from members and remitted to governmental authorities. The Company is the principal in all its relationships where partners, including CE manufacturers, MVPDs, mobile operators and ISPs, provide access to the service as the Company retains control over service delivery to its members. Typically, payments made to the partners, such as for marketing, are expensed. However, if there is no distinct service provided in exchange for the payments made to the partners or if the price that the member pays is established by the partners and there is no standalone price for the Netflix service (for instance, in a bundle), these payments are recognized as a reduction of revenues.
The following tables summarize revenues, paid net membership additions, and ending paid memberships by region for the years ended December 31, 2022, 2021 and 2020, respectively:

United States and Canada (UCAN)
As of/ Year Ended December 31,
 202220212020
 (in thousands)
Revenues$14,084,643 $12,972,100 $11,455,396 
Paid net membership additions (losses)(919)1,279 6,274 
Paid memberships at end of period74,296 75,215 73,936 

Europe, Middle East, and Africa (EMEA)
As of/ Year Ended December 31,
 202220212020
 (in thousands)
Revenues$9,745,015 $9,699,819 $7,772,252 
Paid net membership additions2,693 7,338 14,920 
Paid memberships at end of period76,729 74,036 66,698 

Latin America (LATAM)
As of/ Year Ended December 31,
 202220212020
 (in thousands)
Revenues$4,069,973 $3,576,976 $3,156,727 
Paid net membership additions1,738 2,424 6,120 
Paid memberships at end of period41,699 39,961 37,537 


Asia-Pacific (APAC)
As of/ Year Ended December 31,
 202220212020
 (in thousands)
Revenues$3,570,221 $3,266,601 $2,372,300 
Paid net membership additions5,391 7,140 9,259 
Paid memberships at end of period38,023 32,632 25,492 
A paid membership (also referred to as a paid subscription) is defined as a membership that has the right to receive Netflix service following sign-up and a method of payment being provided, and that is not part of a free trial or certain other promotions that may be offered by the Company to new or rejoining members. Certain members have the option to add extra member sub accounts. These extra member sub accounts are not included in paid memberships. A membership is canceled and ceases to be reflected in the above metrics as of the effective cancellation date. Voluntary cancellations generally become effective at the end of the prepaid membership period. Involuntary cancellations, as a result of a failed method of payment, become effective immediately. Memberships are assigned to territories based on the geographic location used at time of sign-up as determined by the Company’s internal systems, which utilize industry standard geo-location technology.
Total U.S. revenues, inclusive of DVD revenues not reported in the tables above, were $13.0 billion, $12.1 billion and $10.8 billion for the years ended December 31, 2022, 2021 and 2020, respectively. DVD revenues were $0.1 billion, $0.2 billion, and $0.2 billion for the years ended December 31, 2022, 2021 and 2020, 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, 2022, total deferred revenue was $1,265 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 $56 million increase in deferred revenue as compared to the balance of $1,209 million for the year ended December 31, 2021, is a result of the increase in membership fees billed due to increased memberships and acquisition-related deferred revenue.
v3.22.4
Earnings Per Share
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Earnings Per Share Earnings per Share
Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential common shares outstanding during the period. Potential common shares consist of incremental shares issuable upon the assumed exercise of stock options. The computation of earnings per share is as follows:
 
 Year ended December 31,
 202220212020
 (in thousands, except per share data)
Basic earnings per share:
Net income$4,491,924 $5,116,228 $2,761,395 
Shares used in computation:
Weighted-average common shares outstanding444,698 443,155 440,922 
Basic earnings per share$10.10 $11.55 $6.26 
Diluted earnings per share:
Net income$4,491,924 $5,116,228 $2,761,395 
Shares used in computation:
Weighted-average common shares outstanding444,698 443,155 440,922 
Employee stock options 6,592 12,217 13,286 
Weighted-average number of shares451,290 455,372 454,208 
Diluted earnings per share
$9.95 $11.24 $6.08 
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,
 202220212020
 (in thousands)
Employee stock options6,790 348 484 
v3.22.4
Cash, Cash Equivalents, Restricted Cash, and Short-term Investments
 12 Months Ended
Dec. 31, 2022
Short-Term Investments And Fair Value Measurement [Abstract]  
Cash, Cash Equivalents, Restricted Cash, and Short-term Investments Cash, Cash Equivalents, Restricted Cash, and Short-term Investments
The Company’s investment policy is consistent with the definition of available-for-sale securities. The Company does not buy and hold securities principally for the purpose of selling them in the near future. The Company’s policy is focused on the preservation of capital, liquidity and return. From time to time, the Company may sell certain securities but the objectives are generally not to generate profits on short-term differences in price. The following tables summarize the Company's cash, cash equivalents, restricted cash and short-term investments as of December 31, 2022 and 2021:
 As of December 31, 2022
 Cash and cash equivalentsShort-term investments Other Current AssetsNon-current AssetsTotal
 (in thousands)
Cash$4,071,584 $— $3,410 $19,874 $4,094,868 
Level 1 securities:
Money market funds569,826 — — 122 569,948 
Level 2 securities:
Time Deposits (1)505,766 911,276 — — 1,417,042 
$5,147,176 $911,276 $3,410 $19,996 $6,081,858 

(1) The majority of the Company's time deposits are domestic deposits, which mature within one year.
 As of December 31, 2021
 Cash and cash equivalentsOther Current AssetsNon-current AssetsTotal
 (in thousands)
Cash$4,103,613 $3,189 $23,972 $4,130,774 
Level 1 securities:
Money market funds1,924,191 — 146 1,924,337 
$6,027,804 $3,189 $24,118 $6,055,111 

Other current assets include restricted cash for deposits related to self insurance and letter of credit agreements. Non-current assets include restricted cash related to letter of credit agreements. The fair value of cash equivalents and short-term investments included in the Level 2 category is based on observable inputs, such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly.
See Note 6 Debt to the consolidated financial statements for further information regarding the fair value of the Company’s senior notes.
v3.22.4
Balance Sheet Components
 12 Months Ended
Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Components Balance Sheet Components
Content Assets, Net
Content assets consisted of the following:
As of December 31,
20222021
(in thousands)
Licensed content, net
$12,732,549 $13,799,221 
Produced content, net
Released, less amortization
9,110,518 6,877,743 
In production
10,255,940 9,235,975 
In development and pre-production
637,706 1,006,600 
20,004,164 17,120,318 

Content assets, net$32,736,713 $30,919,539 
As of December 31, 2022, approximately $5,428 million, $2,853 million, and $1,984 million of the $12,733 million unamortized cost of the licensed content is expected to be amortized in each of the next three years. As of December 31, 2022, approximately $3,565 million, $2,310 million, and $1,601 million of the $9,111 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, 2022, the amount of accrued participations and residuals was not material.
The following table represents the amortization of content assets:
Year ended December 31,
 202220212020
(in thousands)
Licensed content$7,681,978 $8,055,811 $7,544,631 
Produced content (1)6,344,154 4,174,556 3,262,281 
Total$14,026,132 $12,230,367 $10,806,912 
(1) Tax incentives earned on qualified production spend generally reduce the cost-basis of content assets and result in lower content amortization over the life of the title. For the year ended December 31, 2022, tax incentives resulted in lower content amortization on produced content of approximately $719 million.
Property and Equipment, Net
Property and equipment and accumulated depreciation consisted of the following:
As of December 31,Estimated Useful Lives (in Years)
20222021
(in thousands)
Land$85,005 $82,381 
Buildings52,106 48,123 30 years
Leasehold improvements1,040,570 863,342 Over life of lease
Furniture and fixtures153,682 139,809 3 years
Information technology442,681 380,452 3 years
Corporate aircraft115,578 110,978 
8-10 years
Machinery and equipment26,821 32,426 
3-5 years
Capital work-in-progress235,555 282,248 
Property and equipment, gross2,151,998 1,939,759 
Less: Accumulated depreciation(753,741)(616,306)
Property and equipment, net$1,398,257 $1,323,453 
    

Leases
The Company has entered into operating leases primarily for real estate. These leases generally have terms which range from 1 year to 15 years, and often include one or more options to renew. These renewal terms can extend the lease term from 1 year to 20 years, and are included in the lease term when it is reasonably certain that the Company will exercise the option. These operating leases are included in "Other non-current assets" on the Company's Consolidated Balance Sheets, and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligations to make lease payments are included in "Accrued expenses and other liabilities" and "Other non-current liabilities" on the Company's Consolidated Balance Sheets.  Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company has entered into various short-term operating leases 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. 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 which may contain lease and non-lease components which it has elected to treat as a single lease component.
The components of lease costs for the years ended December 31, 2022, 2021 and 2020 were as follows:
Year ended December 31,
 202220212020
(in thousands)
Operating lease cost$413,664 $389,805 $323,905 
Short-term lease cost194,764 152,765 116,606 
Total lease cost$608,428 $542,570 $440,511 

Information related to the Company's operating right-of-use assets and related operating lease liabilities were as follows:
Year ended December 31,
202220212020
(in thousands)
Cash paid for operating lease liabilities$413,034 $349,586 $259,559 
Right-of-use assets obtained in exchange for new operating lease obligations252,393 764,142 729,942 
As of December 31,
20222021
(in thousands, except lease term and discount rate)
Operating lease right-of-use assets, net$2,227,122 $2,446,573 
Current operating lease liabilities$355,985 $315,189 
Non-current operating lease liabilities2,222,503 2,408,486 
Total operating lease liabilities$2,578,488 $2,723,675 
Weighted-average remaining lease term8.3 years9.2 years
Weighted-average discount rate3.2 %3.1 %


Maturities of operating lease liabilities as of December 31, 2022 were as follows (in thousands):
Due in 12 month period ended December 31,
2023$433,167 
2024406,293 
2025377,371 
2026368,496 
2027310,903 
Thereafter1,036,327 
2,932,557 
Less imputed interest(354,069)
Total operating lease liabilities2,578,488 
The Company has additional operating leases for real estate of $419 million which have not commenced as of December 31, 2022, and as such, have not been recognized on the Company's Consolidated Balance Sheets. These operating leases are expected to commence in 2023 and 2024 with lease terms between 2 and 10 years.


Other Current Assets
Other current assets consisted of the following:
As of
December 31,
2022		December 31,
2021
(in thousands)
Trade receivables
$988,898 $804,320 
Prepaid expenses
392,735 323,818 
Other (1)
1,826,388 913,883 
Total other current assets
$3,208,021 $2,042,021 
(1) $598 million of tax incentives earned on production spend is included in Other as of December 31, 2022.
The increase in Other was primarily due to a modification of a content licensing arrangement.
v3.22.4
Debt
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Debt Debt
As of December 31, 2022, the Company had aggregate outstanding notes of $14,353 million, net of $79 million of issuance costs, with varying maturities (the "Notes"). As of December 31, 2021, the Company had aggregate outstanding long-term notes of $15,393 million, net of $92 million of issuance costs. Each of the Notes were issued at par and are senior unsecured obligations of the Company. Interest is payable semi-annually at fixed rates. A portion of the outstanding Notes is denominated in foreign currency (comprised of €5,170 million) and is remeasured into U.S. dollars at each balance sheet date (with remeasurement gain totaling $353 million for the year ended December 31, 2022).

The following table provides a summary of the Company's outstanding debt and the fair values based on quoted market prices in less active markets as of December 31, 2022 and December 31, 2021:

Principal Amount at ParLevel 2 Fair Value as of
December 31,
2022		December 31,
2021		Issuance DateMaturityDecember 31,
2022		December 31,
2021
(in millions)(in millions)
5.500% Senior Notes
$— $700 February 2015February 2022$— $704 
5.750% Senior Notes
400 400 February 2014March 2024404 437 
5.875% Senior Notes
800 800 February 2015February 2025811 899 
3.000% Senior Notes (1)
503 535 April 2020June 2025495 581 
3.625% Senior Notes
500 500 April 2020June 2025479 529 
4.375% Senior Notes
1,000 1,000 October 2016November 2026980 1,111 
3.625% Senior Notes (1)
1,391 1,480 May 2017May 20271,338 1,702 
4.875% Senior Notes
1,600 1,600 October 2017April 20281,557 1,829 
5.875% Senior Notes
1,900 1,900 April 2018November 20281,930 2,293 
4.625% Senior Notes (1)
1,177 1,252 October 2018May 20291,151 1,565 
6.375% Senior Notes
800 800 October 2018May 2029830 999 
3.875% Senior Notes (1)
1,284 1,366 April 2019November 20291,201 1,651 
5.375% Senior Notes
900 900 April 2019November 2029885 1,068 
3.625% Senior Notes (1)
1,177 1,252 October 2019June 20301,078 1,493 
4.875% Senior Notes
1,000 1,000 October 2019June 2030944 1,169 
$14,432 $15,485 $14,083 $18,030 

(1) The following Senior Notes have a principal amount denominated in euro: 3.000% Senior Notes for €470 million, 3.625% Senior Notes for €1,300 million, 4.625% Senior Notes for €1,100 million, 3.875% Senior Notes for €1,200 million, and 3.625% Senior Notes for €1,100 million.

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, 2022 and December 31, 2021, the Company was in compliance with all related covenants.

Revolving Credit Facility

As of December 31, 2022, the Company has a $1 billion unsecured revolving credit facility ("Revolving Credit Agreement"), which matures on June 17, 2026. Revolving loans may be borrowed, repaid and reborrowed until June 17, 2026, 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, 2022, 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 Adjusted LIBO Rate to continue to make rate submissions, and that publication of the Adjusted LIBO Rate based upon U.S. Dollars is expected to cease on June 30, 2023. The Revolving Credit Agreement contains customary provisions for the replacement of the Adjusted LIBO Rate with an alternate benchmark rate, including a rate based on the secured overnight financing rate published by the Federal Reserve Bank of New York, as the Adjusted LIBO Rate is phased out in the lending market. The Company does not anticipate that the replacement of the Adjusted LIBO Rate with such alternative benchmark rate, as provided in the Revolving Credit Agreement, 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, 2022 and December 31, 2021, the Company was in compliance with all related covenants.
v3.22.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Content
At December 31, 2022, the Company had $21.8 billion of obligations comprised of $4.5 billion included in "Current content liabilities" and $3.1 billion of "Non-current content liabilities" on the Consolidated Balance Sheets and $14.2 billion of obligations that are not reflected on the Consolidated Balance Sheets as they did not yet meet the criteria for asset recognition.
At December 31, 2021, the Company had $23.2 billion of obligations comprised of $4.3 billion included in "Current content liabilities" and $3.1 billion of "Non-current content liabilities" on the Consolidated Balance Sheets and $15.8 billion of obligations that are not reflected on the Consolidated Balance Sheets as they did not yet meet the criteria for asset recognition.
The expected timing of payments for these content obligations is as follows:
As of December 31,
20222021
 (in thousands)
Less than one year$10,038,483 $10,019,306 
Due after one year and through 3 years9,425,551 9,238,315 
Due after 3 years and through 5 years2,124,307 3,238,977 
Due after 5 years243,606 664,762 
Total content obligations$21,831,947 $23,161,360 
    
Content obligations include amounts related to the acquisition, licensing and production of content. Obligations that are in non-U.S. dollar currencies are translated to the U.S. dollar at period end rates. An obligation for the production of content includes non-cancelable commitments under creative talent and employment agreements as well as other production related commitments. An obligation for the acquisition and licensing of content is incurred at the time the Company enters into an agreement to obtain future titles. Once a title becomes available, a content liability is recorded on the Consolidated Balance Sheets. Certain agreements include the obligation to license rights for unknown future titles, the ultimate quantity and/or fees for which are not yet determinable as of the reporting date. Traditional film output deals, or certain TV series license agreements where the number of seasons to be aired is unknown, are examples of such license agreements. The Company does not include any estimated obligation for these future titles beyond the known minimum amount. However, the unknown obligations are expected to be significant.

Legal Proceedings
From time to time, in the normal course of its operations, the Company is subject to litigation matters and claims, including claims relating to employee relations, business practices and patent infringement. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict and the Company's view of these matters may change in the future as the litigation and events related thereto unfold. The Company expenses legal fees as incurred. The Company records a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. An unfavorable outcome to any legal matter, if material, could have an adverse effect on the Company's operations or its financial position, liquidity or results of operations.

The Company is involved in litigation matters not listed herein but does not consider the matters to be material either individually or in the aggregate at this time. The Company's view of the matters not listed may change in the future as the litigation and events related thereto unfold.
v3.22.4
Guarantees—Indemnification Obligations
 12 Months Ended
Dec. 31, 2022
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.
v3.22.4
Stockholders' Equity
 12 Months Ended
Dec. 31, 2022
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders’ Equity
Voting Rights
The holders of each share of common stock shall be entitled to one vote per share on all matters to be voted upon by the Company’s stockholders.
Stock Option Plan
On June 4, 2020, the Company's stockholders approved the 2020 Stock Plan, which was adopted by the Company's Board of Directors on March 4, 2020 subject to stockholder approval. The 2020 Stock Plan is the successor to the 2011 Stock Plan. The 2020 Stock Plan provides for the grant of incentive stock options to employees and for the grant of non-statutory stock options, stock appreciation rights, restricted stock and restricted stock units to employees, directors and consultants. The 2020 Stock Plan authorized 17,500,000 new shares to be available for award grants. As of the date the 2020 Stock Plan was adopted by the Company's Board of Directors, 5,530,106 shares were available to be granted under the 2011 Stock Plan. These shares are available for award grants under the 2020 Stock Plan.
A summary of the activities related to the Company’s stock option plans is as follows:
 
 Shares Available
for Grant		Options Outstanding
 Number of
Shares		Weighted- Average Exercise Price
(per Share)
Balances as of December 31, 20196,111,561 20,859,326 $124.28 
New Shares Authorized17,500,000 — — 
Granted(1,909,476)1,909,476 432.34 
Exercised(4,088,612)58.35 
Expired— (3,380)27.54 
Balances as of December 31, 202021,702,085 18,676,810 $170.23 
Granted(1,556,725)1,556,725 554.11 
Exercised(2,632,324)65.97 
Expired— (5,360)34.63 
Balances as of December 31, 202120,145,360 17,595,851 $219.83 
Granted(3,691,257)3,691,257 267.94 
Exercised— (1,383,669)27.19 
Expired— (6,578)11.10 
Balances as of December 31, 202216,454,103 19,896,861 $242.22 
Vested and exercisable at December 31, 2022
19,896,861 $242.22 
The aggregate intrinsic value of the Company's outstanding stock options as of December 31, 2022 was $1,951 million and represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of 2022 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 2022. 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, 2022, 2021 and 2020 was $346 million, $1,363 million and $1,596 million, respectively. The weighted-average remaining contractual term of the Company's outstanding stock options as of December 31, 2022 included in the table above was 5.61 years.
Cash received from option exercises for the years ended December 31, 2022, 2021 and 2020 was $36 million, $174 million and $235 million, respectively. The Company records stock option exercises based on trade date.
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,
 202220212020
Dividend yield— %— %— %
Expected volatility
38% - 52%
34% - 41%
37% - 45%
Risk-free interest rate
1.71% - 3.79%
1.08% - 1.62%
0.67% - 1.71%
Suboptimal exercise factor
4.71 - 4.82
3.81 - 3.98
3.34 - 3.67
Valuation data:
Weighted-average fair value (per share)$155.88 $259.01 $217.42 
Total stock-based compensation expense (in thousands)575,452 403,220 415,180 
Total income tax impact on provision (in thousands)127,289 89,642 91,718 

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.
Stock Repurchases
In March 2021, the Company’s Board of Directors authorized the repurchase of up to $5 billion of its common stock, with no expiration date. Stock repurchases may be effected through open market repurchases in compliance with Rule 10b-18 under the Exchange Act, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, privately-negotiated transactions, accelerated stock repurchase plans, block purchases, or other similar purchase techniques and in such amounts as management deems appropriate. The Company is not obligated to repurchase any specific number of shares, and the timing and actual number of shares repurchased will depend on a variety of factors, including the Company’s stock price, general economic, business and market conditions, and alternative investment opportunities. The Company may discontinue any repurchases of its common stock at any time without prior notice. There were no repurchases during the year ended December 31, 2022. As of December 31, 2022, $4.4 billion remain available for repurchases. Shares repurchased by the Company are accounted for when the transaction is settled. Direct costs incurred to acquire the shares are included in the total cost of the shares.
v3.22.4
Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income before provision for income taxes was as follows:
 Year Ended December 31,
 202220212020
 (in thousands)
United States$4,690,442 $5,365,547 $2,789,064 
Foreign573,487 474,556 410,285 
Income before income taxes$5,263,929 $5,840,103 $3,199,349 
The components of provision for income taxes for all periods presented were as follows:
 
 Year Ended December 31,
 202220212020
 (in thousands)
Current tax provision:
Federal$109,910 $57,526 $24,221 
State119,795 109,641 65,821 
Foreign676,827 357,189 277,846 
Total current906,532 524,356 367,888 
Deferred tax provision:
Federal(52,434)188,937 (57,765)
State(30,691)(2,700)164,685 
Foreign(51,402)13,282 (36,854)
Total deferred(134,527)199,519 70,066 
Provision for income taxes$772,005 $723,875 $437,954 
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,
 202220212020
 (in thousands)
Expected tax expense at U.S. Federal statutory rates$1,105,428 $1,226,422 $671,864 
State income taxes, net of Federal income tax effect92,084 111,400 65,808 
Foreign earnings at other than U.S. rates112,628 (23,963)12,212 
Federal and California R&D tax credits(146,615)(82,909)(113,882)
Valuation allowance on California R&D tax credits— — 183,283 
Excess tax benefits on stock-based compensation(75,211)(290,899)(339,436)
Tax effects of the Tax Cuts and Jobs Act(368,976)(254,763)(87,194)
Nondeductible Officers Compensation33,836 26,874 30,351 
Other18,831 11,713 14,948 
Provision for income taxes$772,005 $723,875 $437,954 
Effective Tax Rate15 %12 %14 %
The components of deferred tax assets and liabilities were as follows:
 
 As of December 31,
 20222021
 (in thousands)
Deferred tax assets:
Stock-based compensation$443,456 $351,238 
Federal and California tax R&D credits342,589 484,793 
Foreign tax credits11,899 2,045 
Capitalized Research Expenses323,998 — 
Accruals and reserves119,732 165,214 
Operating leases551,418 570,830 
Foreign Net Operating Losses20,092 8,043 
Unrealized Gain/Loss(47,283)13,772 
Other2,234 5,420 
Gross deferred tax assets1,768,135 1,601,355 
Depreciation & amortization(456,717)(388,115)
Operating leases(473,928)(506,403)
       Acquisitions(232,607)(240,334)
Gross deferred tax liabilities(1,163,252)(1,134,852)
Valuation allowance(343,342)(318,408)
Net deferred tax assets$261,541 $148,095 
All deferred tax assets are classified as “Other non-current assets” on the Consolidated Balance Sheets as of December 31, 2022 and December 31, 2021. 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, 2022, the valuation allowance of $343 million was related to the California R&D credits and certain foreign tax attributes that the Company does not expect to realize.
As of December 31, 2022, the Company's California R&D tax credit carryforwards for tax return purposes was $504 million.
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, 2022, the total amount of gross unrecognized tax benefits was $227 million, of which $155 million, if recognized, would favorably impact the Company’s effective tax rate. As of December 31, 2021, the total amount of gross unrecognized tax benefits was $203 million, of which $136 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, 2020$140,124 
Increases related to tax positions taken during prior periods 27,116 
Decreases related to tax positions taken during prior periods— 
Increases related to tax positions taken during the current period35,317 
Decreases related to expiration of statute of limitations— 
Balances as of December 31, 2021202,557 
Increases related to tax positions taken during prior periods — 
Decreases related to tax positions taken during prior periods (2,445)
Increases related to tax positions taken during the current period26,865 
Decreases related to expiration of statute of limitations— 
Balances as of December 31, 2022$226,977 
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 years 2016 through 2018 and is subject to examination for 2019 through 2021. The foreign and state tax returns for years 2015 through 2021 are subject to examination by various states and foreign jurisdictions. While the Company is in various stages of inquiries and examinations for some state and federal taxing authorities, we believe that our tax positions will more likely than not be sustained. Nonetheless, it is possible that future obligations related to these matters could arise.
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.
v3.22.4
Employee Benefit Plan
 12 Months Ended
Dec. 31, 2022
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 2022, 2021 and 2020, the Company’s matching contributions totaled $102 million, $85 million and $69 million, respectively.
Multiemployer Benefit Plans
The Company contributes to various multiemployer defined pension plans under the terms of collective bargaining agreements that cover our union-represented employees. The risks of participating in multiemployer pension plans are different from single-employer plans such that (i) contributions made by the Company to the multiemployer pension plans may be used to provide benefits to employees of other participating employers; (ii) if the Company chooses to stop participating in the multiemployer pension plans, it may be required to pay those plans an amount based on the underfunded status of the plan; and (iii) if the Company stops contributing to the multiemployer pension plan, the unfunded obligations of the plan may become the obligation of the remaining participating employers. The Company also contributes to various other multiemployer benefit plans that provide health and welfare benefits to both active and retired participants. The Company does not participate in any multiemployer benefit plans that are individually significant to the Company.
The following table summarizes the Company's contributions to multiemployer pension and health plans for the years ended December 31, 2022, 2021 and 2020, respectively:
 Year Ended December 31,
 202220212020
 (in thousands)
Pension benefits$127,885 $111,133 $78,060 
Health benefits96,285 83,153 52,322 
Total contributions$224,170 $194,286 $130,382 
v3.22.4
Segment and Geographic Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment and Geographic Information Segment and Geographic Information
The Company operates as one operating segment. The Company's chief operating decision maker ("CODM") is its co-chief executive officers, who review financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources.
    Total U.S. revenues were $13.0 billion, $12.1 billion and $10.8 billion for the years ended December 31, 2022, 2021 and 2020, respectively. See Note 2 Revenue Recognition for additional information about streaming revenue by region.
    The Company's long-lived tangible assets, as well as the Company's operating lease right-of-use assets recognized on the Consolidated Balance Sheets were located as follows:
As of December 31,
20222021
(in thousands)
United States$2,745,071 $2,833,059 
International880,308 936,967 
v3.22.4
Organization and Summary of Significant Accounting Policies (Policy)
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of PresentationThe consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated.
Use of Estimates
Use of Estimates
The preparation of consolidated financial statements in conformity with generally accepted accounting principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions include the content asset amortization policy and the recognition and measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results may differ from these estimates.
Recently adopted accounting pronouncements and Recently issued accounting pronouncements not yet adopted
Recently adopted accounting pronouncements
In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities in accordance with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. The Company adopted ASU 2021-08 in the first quarter of 2022 and the adoption had no material impact to the Company’s consolidated financial statements.
In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, requiring annual disclosures about transactions with a government that are accounted for by analogizing to a grant or contribution accounting model. The new guidance requires the disclosure of the nature of the transactions, the accounting for the transactions, and the effect of the transactions on the financial statements. The Company adopted ASU 2021-10 during the year ended December 31, 2022, which most significantly impacts disclosures of tax incentives related to the production of content.
Cash Equivalents and Short-term Investments
Cash Equivalents and Short-term Investments
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.
The Company classifies short-term investments, which consist of marketable securities with original maturities in excess of 90 days as available-for-sale. Short-term investments are reported at fair value, with allowances for credit losses included in “Interest and other income (expense)” in the Consolidated Statements of Operations and unrealized gains and losses included in “Accumulated other comprehensive income (loss)” within Stockholders’ equity in the Consolidated Balance Sheets. The Company uses the specific identification method to determine cost in calculating realized gains and losses upon the sale of short-term investments.
Short-term investments are reviewed periodically for allowances for credit losses and impairment. When evaluating the investments, the Company reviews factors such as the extent to which the fair value of the security is less than the amortized cost basis, adverse conditions specifically related to the security, the financial condition of the issuer, the Company’s intent to sell, and whether it would be more likely than not that the Company would be required to sell the investments before the recovery of their amortized cost basis.
Content
Content
The Company acquires, licenses and produces content, including original programming, in order to offer members unlimited viewing of video entertainment. The content licenses are for a fixed fee and specific windows of availability. Payment terms for certain content licenses and the production of content require more upfront cash payments relative to the amortization expense. Payments for content, including additions to content assets and the changes in related liabilities, are classified within "Net cash provided by (used in) operating activities" on the Consolidated Statements of Cash Flows.
The Company recognizes content assets (licensed and produced) as “Content assets, net” on the Consolidated Balance Sheets. For licensed content, the Company capitalizes the fee per title and records a corresponding liability at the gross amount of the liability when the license period begins, the cost of the title is known and the title is accepted and available for streaming. For produced content, the Company capitalizes costs associated with the production, including development costs, direct costs and production overhead. Participations and residuals are expensed in line with the amortization of production costs.
Based on factors including historical and estimated viewing patterns, the Company amortizes the content assets (licensed and produced) in “Cost of revenues” on the Consolidated Statements of Operations over the shorter of each title's contractual window of availability or estimated period of use or ten years, beginning with the month of first availability. The amortization is on an accelerated basis, as the Company typically expects more upfront viewing, and film amortization is more accelerated than TV series amortization. On average, over 90% of a licensed or produced content asset is expected to be amortized within four years after its month of first availability. The Company reviews factors impacting the amortization of the content assets on a regular basis. The Company's estimates related to these factors require considerable management judgment.
In the normal course of business, the Company, or a third-party producing content on the Company's behalf, may qualify for tax incentives through eligible spend on productions. The accounting for tax incentives is dependent on the particular type of incentive, including the nature of the benefit and the location the incentive is earned. In general, tax incentives are realized as cash receipts and may be received prior to or after a title launches on the Company’s service. Upon a title’s launch, any amounts the Company is eligible for through qualified production spend but has not received, are recognized in “Other current assets” or “Other non-current assets” on the Company’s Consolidated Balance Sheets as receivables. Tax incentives are generally accounted for as a reduction to the cost basis of the Company’s content assets (presented in “Content assets, net”) and reduces content amortization over the life of the title (as presented in “Cost of revenues”) on the Consolidated Statement of Operations.
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.
Acquisitions
Acquisitions

The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. In addition, uncertain tax positions, tax-related valuation allowances and pre-acquisition contingencies are initially recorded in connection with a business combination as of the acquisition date.
Property and Equipment Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the shorter of the estimated useful lives of the respective assets, generally up to 30 years, or the expected lease term for leasehold improvements, if applicable.
Trade Receivables Trade ReceivablesTrade receivables consist primarily of amounts related to members and payment partners that collect membership fees on the Company's behalf. The Company evaluates the need for an allowance for credit losses based on historical collection trends, the financial condition of its payment partners, and external market factors. The Company's allowance for credit losses was not material as of December 31, 2022 and December 31, 2021.
Marketing
Marketing
Marketing expenses consist primarily of advertising expenses and certain payments made to the Company’s partners, including consumer electronics ("CE") manufacturers, multichannel video programming distributors ("MVPDs"), mobile
operators and internet service providers ("ISPs"). Advertising expenses include promotional activities such as digital and television advertising. Advertising costs are expensed as incurred.
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 income (loss)" in Stockholders’ equity on the Consolidated Balance Sheets.
The Company remeasures monetary assets and liabilities that are not denominated in the functional currency at exchange rates in effect at the end of each period. Gains and losses from these remeasurements are recognized in interest and other income (expense).
Stock-Based Compensation Stock-Based CompensationThe Company grants non-qualified stock options to its employees on a monthly basis. Stock-based compensation expense is based on the fair value of the options at the grant date and is recognized, net of forfeitures, over the requisite service period.
v3.22.4
Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Summary of Streaming Revenue, Paid Net Membership Additions, and Ending Paid Memberships by Region
The following tables summarize revenues, paid net membership additions, and ending paid memberships by region for the years ended December 31, 2022, 2021 and 2020, respectively:

United States and Canada (UCAN)
As of/ Year Ended December 31,
 202220212020
 (in thousands)
Revenues$14,084,643 $12,972,100 $11,455,396 
Paid net membership additions (losses)(919)1,279 6,274 
Paid memberships at end of period74,296 75,215 73,936 

Europe, Middle East, and Africa (EMEA)
As of/ Year Ended December 31,
 202220212020
 (in thousands)
Revenues$9,745,015 $9,699,819 $7,772,252 
Paid net membership additions2,693 7,338 14,920 
Paid memberships at end of period76,729 74,036 66,698 

Latin America (LATAM)
As of/ Year Ended December 31,
 202220212020
 (in thousands)
Revenues$4,069,973 $3,576,976 $3,156,727 
Paid net membership additions1,738 2,424 6,120 
Paid memberships at end of period41,699 39,961 37,537 


Asia-Pacific (APAC)
As of/ Year Ended December 31,
 202220212020
 (in thousands)
Revenues$3,570,221 $3,266,601 $2,372,300 
Paid net membership additions5,391 7,140 9,259 
Paid memberships at end of period38,023 32,632 25,492 
v3.22.4
Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Summary of Computation of Earnings Per Share The computation of earnings per share is as follows:
 
 Year ended December 31,
 202220212020
 (in thousands, except per share data)
Basic earnings per share:
Net income$4,491,924 $5,116,228 $2,761,395 
Shares used in computation:
Weighted-average common shares outstanding444,698 443,155 440,922 
Basic earnings per share$10.10 $11.55 $6.26 
Diluted earnings per share:
Net income$4,491,924 $5,116,228 $2,761,395 
Shares used in computation:
Weighted-average common shares outstanding444,698 443,155 440,922 
Employee stock options 6,592 12,217 13,286 
Weighted-average number of shares451,290 455,372 454,208 
Diluted earnings per share
$9.95 $11.24 $6.08 
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,
 202220212020
 (in thousands)
Employee stock options6,790 348 484 
v3.22.4
Cash, Cash Equivalents, Restricted Cash, and Short-term Investments (Tables)
 12 Months Ended
Dec. 31, 2022
Short-Term Investments And Fair Value Measurement [Abstract]  
Summary of Cash and Cash Equivalents and Restricted Cash The following tables summarize the Company's cash, cash equivalents, restricted cash and short-term investments as of December 31, 2022 and 2021:
 As of December 31, 2022
 Cash and cash equivalentsShort-term investments Other Current AssetsNon-current AssetsTotal
 (in thousands)
Cash$4,071,584 $— $3,410 $19,874 $4,094,868 
Level 1 securities:
Money market funds569,826 — — 122 569,948 
Level 2 securities:
Time Deposits (1)505,766 911,276 — — 1,417,042 
$5,147,176 $911,276 $3,410 $19,996 $6,081,858 

(1) The majority of the Company's time deposits are domestic deposits, which mature within one year.
 As of December 31, 2021
 Cash and cash equivalentsOther Current AssetsNon-current AssetsTotal
 (in thousands)
Cash$4,103,613 $3,189 $23,972 $4,130,774 
Level 1 securities:
Money market funds1,924,191 — 146 1,924,337 
$6,027,804 $3,189 $24,118 $6,055,111 
v3.22.4
Balance Sheet Components (Tables)
 12 Months Ended
Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]  
Summary of Content Assets
Content assets consisted of the following:
As of December 31,
20222021
(in thousands)
Licensed content, net
$12,732,549 $13,799,221 
Produced content, net
Released, less amortization
9,110,518 6,877,743 
In production
10,255,940 9,235,975 
In development and pre-production
637,706 1,006,600 
20,004,164 17,120,318 

Content assets, net$32,736,713 $30,919,539 
Summary of Amortization of Streaming Content Assets
The following table represents the amortization of content assets:
Year ended December 31,
 202220212020
(in thousands)
Licensed content$7,681,978 $8,055,811 $7,544,631 
Produced content (1)6,344,154 4,174,556 3,262,281 
Total$14,026,132 $12,230,367 $10,806,912 
(1) Tax incentives earned on qualified production spend generally reduce the cost-basis of content assets and result in lower content amortization over the life of the title. For the year ended December 31, 2022, tax incentives resulted in lower content amortization on produced content of approximately $719 million.
Summary of Property and Equipment, Net
Property and equipment and accumulated depreciation consisted of the following:
As of December 31,Estimated Useful Lives (in Years)
20222021
(in thousands)
Land$85,005 $82,381 
Buildings52,106 48,123 30 years
Leasehold improvements1,040,570 863,342 Over life of lease
Furniture and fixtures153,682 139,809 3 years
Information technology442,681 380,452 3 years
Corporate aircraft115,578 110,978 
8-10 years
Machinery and equipment26,821 32,426 
3-5 years
Capital work-in-progress235,555 282,248 
Property and equipment, gross2,151,998 1,939,759 
Less: Accumulated depreciation(753,741)(616,306)
Property and equipment, net$1,398,257 $1,323,453 
Summary of Information on Right-of-Use Assets and Lease Liabilities
The components of lease costs for the years ended December 31, 2022, 2021 and 2020 were as follows:
Year ended December 31,
 202220212020
(in thousands)
Operating lease cost$413,664 $389,805 $323,905 
Short-term lease cost194,764 152,765 116,606 
Total lease cost$608,428 $542,570 $440,511 

Information related to the Company's operating right-of-use assets and related operating lease liabilities were as follows:
Year ended December 31,
202220212020
(in thousands)
Cash paid for operating lease liabilities$413,034 $349,586 $259,559 
Right-of-use assets obtained in exchange for new operating lease obligations252,393 764,142 729,942 
As of December 31,
20222021
(in thousands, except lease term and discount rate)
Operating lease right-of-use assets, net$2,227,122 $2,446,573 
Current operating lease liabilities$355,985 $315,189 
Non-current operating lease liabilities2,222,503 2,408,486 
Total operating lease liabilities$2,578,488 $2,723,675 
Weighted-average remaining lease term8.3 years9.2 years
Weighted-average discount rate3.2 %3.1 %
Summary of Maturities of Lease Liabilities
Maturities of operating lease liabilities as of December 31, 2022 were as follows (in thousands):
Due in 12 month period ended December 31,
2023$433,167 
2024406,293 
2025377,371 
2026368,496 
2027310,903 
Thereafter1,036,327 
2,932,557 
Less imputed interest(354,069)
Total operating lease liabilities2,578,488 
Schedule of Other Current Assets
Other current assets consisted of the following:
As of
December 31,
2022		December 31,
2021
(in thousands)
Trade receivables
$988,898 $804,320 
Prepaid expenses
392,735 323,818 
Other (1)
1,826,388 913,883 
Total other current assets
$3,208,021 $2,042,021 
(1) $598 million of tax incentives earned on production spend is included in Other as of December 31, 2022.
v3.22.4
Debt (Tables)
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Summary of Long-term Debt Instruments
The following table provides a summary of the Company's outstanding debt and the fair values based on quoted market prices in less active markets as of December 31, 2022 and December 31, 2021:

Principal Amount at ParLevel 2 Fair Value as of
December 31,
2022		December 31,
2021		Issuance DateMaturityDecember 31,
2022		December 31,
2021
(in millions)(in millions)
5.500% Senior Notes
$— $700 February 2015February 2022$— $704 
5.750% Senior Notes
400 400 February 2014March 2024404 437 
5.875% Senior Notes
800 800 February 2015February 2025811 899 
3.000% Senior Notes (1)
503 535 April 2020June 2025495 581 
3.625% Senior Notes
500 500 April 2020June 2025479 529 
4.375% Senior Notes
1,000 1,000 October 2016November 2026980 1,111 
3.625% Senior Notes (1)
1,391 1,480 May 2017May 20271,338 1,702 
4.875% Senior Notes
1,600 1,600 October 2017April 20281,557 1,829 
5.875% Senior Notes
1,900 1,900 April 2018November 20281,930 2,293 
4.625% Senior Notes (1)
1,177 1,252 October 2018May 20291,151 1,565 
6.375% Senior Notes
800 800 October 2018May 2029830 999 
3.875% Senior Notes (1)
1,284 1,366 April 2019November 20291,201 1,651 
5.375% Senior Notes
900 900 April 2019November 2029885 1,068 
3.625% Senior Notes (1)
1,177 1,252 October 2019June 20301,078 1,493 
4.875% Senior Notes
1,000 1,000 October 2019June 2030944 1,169 
$14,432 $15,485 $14,083 $18,030 
(1) The following Senior Notes have a principal amount denominated in euro: 3.000% Senior Notes for €470 million, 3.625% Senior Notes for €1,300 million, 4.625% Senior Notes for €1,100 million, 3.875% Senior Notes for €1,200 million, and 3.625% Senior Notes for €1,100 million.
v3.22.4
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Summary of Expected Timing of Payments for Streaming Content Obligations
The expected timing of payments for these content obligations is as follows:
As of December 31,
20222021
 (in thousands)
Less than one year$10,038,483 $10,019,306 
Due after one year and through 3 years9,425,551 9,238,315 
Due after 3 years and through 5 years2,124,307 3,238,977 
Due after 5 years243,606 664,762 
Total content obligations$21,831,947 $23,161,360 
v3.22.4
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2022
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
 Number of
Shares		Weighted- Average Exercise Price
(per Share)
Balances as of December 31, 20196,111,561 20,859,326 $124.28 
New Shares Authorized17,500,000 — — 
Granted(1,909,476)1,909,476 432.34 
Exercised(4,088,612)58.35 
Expired— (3,380)27.54 
Balances as of December 31, 202021,702,085 18,676,810 $170.23 
Granted(1,556,725)1,556,725 554.11 
Exercised(2,632,324)65.97 
Expired— (5,360)34.63 
Balances as of December 31, 202120,145,360 17,595,851 $219.83 
Granted(3,691,257)3,691,257 267.94 
Exercised— (1,383,669)27.19 
Expired— (6,578)11.10 
Balances as of December 31, 202216,454,103 19,896,861 $242.22 
Vested and exercisable at December 31, 2022
19,896,861 $242.22 
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,
 202220212020
Dividend yield— %— %— %
Expected volatility
38% - 52%
34% - 41%
37% - 45%
Risk-free interest rate
1.71% - 3.79%
1.08% - 1.62%
0.67% - 1.71%
Suboptimal exercise factor
4.71 - 4.82
3.81 - 3.98
3.34 - 3.67
Valuation data:
Weighted-average fair value (per share)$155.88 $259.01 $217.42 
Total stock-based compensation expense (in thousands)575,452 403,220 415,180 
Total income tax impact on provision (in thousands)127,289 89,642 91,718 
v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Taxes
Income before provision for income taxes was as follows:
 Year Ended December 31,
 202220212020
 (in thousands)
United States$4,690,442 $5,365,547 $2,789,064 
Foreign573,487 474,556 410,285 
Income before income taxes$5,263,929 $5,840,103 $3,199,349 
Components of Provision for Income Taxes
The components of provision for income taxes for all periods presented were as follows:
 
 Year Ended December 31,
 202220212020
 (in thousands)
Current tax provision:
Federal$109,910 $57,526 $24,221 
State119,795 109,641 65,821 
Foreign676,827 357,189 277,846 
Total current906,532 524,356 367,888 
Deferred tax provision:
Federal(52,434)188,937 (57,765)
State(30,691)(2,700)164,685 
Foreign(51,402)13,282 (36,854)
Total deferred(134,527)199,519 70,066 
Provision for income taxes$772,005 $723,875 $437,954 
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,
 202220212020
 (in thousands)
Expected tax expense at U.S. Federal statutory rates$1,105,428 $1,226,422 $671,864 
State income taxes, net of Federal income tax effect92,084 111,400 65,808 
Foreign earnings at other than U.S. rates112,628 (23,963)12,212 
Federal and California R&D tax credits(146,615)(82,909)(113,882)
Valuation allowance on California R&D tax credits— — 183,283 
Excess tax benefits on stock-based compensation(75,211)(290,899)(339,436)
Tax effects of the Tax Cuts and Jobs Act(368,976)(254,763)(87,194)
Nondeductible Officers Compensation33,836 26,874 30,351 
Other18,831 11,713 14,948 
Provision for income taxes$772,005 $723,875 $437,954 
Effective Tax Rate15 %12 %14 %
Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities were as follows:
 
 As of December 31,
 20222021
 (in thousands)
Deferred tax assets:
Stock-based compensation$443,456 $351,238 
Federal and California tax R&D credits342,589 484,793 
Foreign tax credits11,899 2,045 
Capitalized Research Expenses323,998 — 
Accruals and reserves119,732 165,214 
Operating leases551,418 570,830 
Foreign Net Operating Losses20,092 8,043 
Unrealized Gain/Loss(47,283)13,772 
Other2,234 5,420 
Gross deferred tax assets1,768,135 1,601,355 
Depreciation & amortization(456,717)(388,115)
Operating leases(473,928)(506,403)
       Acquisitions(232,607)(240,334)
Gross deferred tax liabilities(1,163,252)(1,134,852)
Valuation allowance(343,342)(318,408)
Net deferred tax assets$261,541 $148,095 
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, 2020$140,124 
Increases related to tax positions taken during prior periods 27,116 
Decreases related to tax positions taken during prior periods— 
Increases related to tax positions taken during the current period35,317 
Decreases related to expiration of statute of limitations— 
Balances as of December 31, 2021202,557 
Increases related to tax positions taken during prior periods — 
Decreases related to tax positions taken during prior periods (2,445)
Increases related to tax positions taken during the current period26,865 
Decreases related to expiration of statute of limitations— 
Balances as of December 31, 2022$226,977 
v3.22.4
Employee Benefit Plan (Tables)
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Schedule of Company Contributions to Pension and Health Plans
The following table summarizes the Company's contributions to multiemployer pension and health plans for the years ended December 31, 2022, 2021 and 2020, respectively:
 Year Ended December 31,
 202220212020
 (in thousands)
Pension benefits$127,885 $111,133 $78,060 
Health benefits96,285 83,153 52,322 
Total contributions$224,170 $194,286 $130,382 
v3.22.4
Segment and Geographic Information (Tables)
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Summary of Long-lived Assets by Geographic Areas The Company's long-lived tangible assets, as well as the Company's operating lease right-of-use assets recognized on the Consolidated Balance Sheets were located as follows:
As of December 31,
20222021
(in thousands)
United States$2,745,071 $2,833,059 
International880,308 936,967 
v3.22.4
Organization and Summary of Significant Accounting Policies (Details)
$ in Thousands, membership in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
country
membership
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Organization And Summary Of Significant Accounting Policies [Line Items]      
Number of streaming members (over) | membership 231    
Number of countries (over) | country 190    
Content assets amortization period cap 10 years    
Average produced content asset amortization percentage (over) 90.00%    
Average produced content asset amortization period 4 years    
Advertising expense $ 1,586,000 $ 1,669,000 $ 1,447,000
Foreign currency remeasurement gain (loss) 353,111 430,661 (533,278)
Interest and Other Income (Expense)      
Organization And Summary Of Significant Accounting Policies [Line Items]      
Foreign currency remeasurement gain (loss) $ 282,000 $ 403,000 $ (660,000)
Maximum      
Organization And Summary Of Significant Accounting Policies [Line Items]      
Property and equipment estimated useful life (in years) 30 years    
v3.22.4
Revenue Recognition - Revenue and Membership Information (Details)
membership in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
membership
Dec. 31, 2021
USD ($)
membership
Dec. 31, 2020
USD ($)
membership
Disaggregation of Revenue [Line Items]      
Revenues | $ $ 31,615,550 $ 29,697,844 $ 24,996,056
Streaming | United States and Canada      
Disaggregation of Revenue [Line Items]      
Revenues | $ $ 14,084,643 $ 12,972,100 $ 11,455,396
Paid net membership additions (in memberships) (919) 1,279 6,274
Paid memberships at end of period (in memberships) 74,296 75,215 73,936
Streaming | Europe, Middle East, and Africa      
Disaggregation of Revenue [Line Items]      
Revenues | $ $ 9,745,015 $ 9,699,819 $ 7,772,252
Paid net membership additions (in memberships) 2,693 7,338 14,920
Paid memberships at end of period (in memberships) 76,729 74,036 66,698
Streaming | Latin America      
Disaggregation of Revenue [Line Items]      
Revenues | $ $ 4,069,973 $ 3,576,976 $ 3,156,727
Paid net membership additions (in memberships) 1,738 2,424 6,120
Paid memberships at end of period (in memberships) 41,699 39,961 37,537
Streaming | Asia-Pacific      
Disaggregation of Revenue [Line Items]      
Revenues | $ $ 3,570,221 $ 3,266,601 $ 2,372,300
Paid net membership additions (in memberships) 5,391 7,140 9,259
Paid memberships at end of period (in memberships) 38,023 32,632 25,492
v3.22.4
Revenue Recognition - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation of Revenue [Line Items]      
Revenues $ 31,615,550 $ 29,697,844 $ 24,996,056
Deferred revenue 1,264,661 1,209,342  
Increase in deferred revenue   56,000  
DVD      
Disaggregation of Revenue [Line Items]      
Revenues 100,000 200,000 200,000
United States      
Disaggregation of Revenue [Line Items]      
Revenues $ 13,000,000 $ 12,100,000 $ 10,800,000
v3.22.4
Earnings Per Share - Calculation of EPS (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Basic earnings per share:      
Net income $ 4,491,924 $ 5,116,228 $ 2,761,395
Weighted-average common shares outstanding (in shares) 444,698 443,155 440,922
Basic earnings per share (in USD per share) $ 10.10 $ 11.55 $ 6.26
Diluted earnings per share:      
Net income $ 4,491,924 $ 5,116,228 $ 2,761,395
Shares used in computation:      
Weighted-average common shares outstanding (in shares) 444,698 443,155 440,922
Employee stock options (in shares) 6,592 12,217 13,286
Weighted-average number of shares (in shares) 451,290 455,372 454,208
Diluted earnings per share (in USD per share) $ 9.95 $ 11.24 $ 6.08
v3.22.4
Earnings Per Share - Antidilutive Shares (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Earnings Per Share [Abstract]      
Antidilutive securities excluded from earnings per share calculations (in shares) 6,790 348 484
v3.22.4
Cash, Cash Equivalents, Restricted Cash, and Short-term Investments (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments $ 6,081,858 $ 6,055,111
Cash and cash equivalents    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 5,147,176 6,027,804
Short-term investments    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 911,276  
Other Current Assets    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 3,410 3,189
Non-current Assets    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 19,996 24,118
Cash    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 4,094,868 4,130,774
Cash | Cash and cash equivalents    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 4,071,584 4,103,613
Cash | Short-term investments    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 0  
Cash | Other Current Assets    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 3,410 3,189
Cash | Non-current Assets    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 19,874 23,972
Money market funds | Level 1 securities    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 569,948 1,924,337
Money market funds | Cash and cash equivalents | Level 1 securities    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 569,826 1,924,191
Money market funds | Short-term investments | Level 1 securities    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 0  
Money market funds | Other Current Assets | Level 1 securities    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 0 0
Money market funds | Non-current Assets | Level 1 securities    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 122 $ 146
Time Deposits | Level 2 securities    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 1,417,042  
Time Deposits | Cash and cash equivalents | Level 2 securities    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 505,766  
Time Deposits | Short-term investments | Level 2 securities    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 911,276  
Time Deposits | Other Current Assets | Level 2 securities    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments 0  
Time Deposits | Non-current Assets | Level 2 securities    
Cash and Cash Equivalents [Line Items]    
Cash, Cash Equivalents, and Short-Term Investments $ 0  
v3.22.4
Balance Sheet Components - Components of Content Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]      
Content assets, net $ 32,736,713 $ 30,919,539  
Amortization of content assets 14,026,132 12,230,367 $ 10,806,912
Tax incentives resulting in lower content amortization 719,000    
Licensed content, net      
Finite-Lived Intangible Assets [Line Items]      
Net content 12,732,549 13,799,221  
Unamortized cost in year one 5,428,000    
Unamortized cost in year two 2,853,000    
Unamortized cost in year three 1,984,000    
Amortization of content assets 7,681,978 8,055,811 7,544,631
Produced content, net      
Finite-Lived Intangible Assets [Line Items]      
Net content 9,110,518 6,877,743  
In production 10,255,940 9,235,975  
In development and pre-production 637,706 1,006,600  
Content assets, net 20,004,164 17,120,318  
Unamortized cost in year one 3,565,000    
Unamortized cost in year two 2,310,000    
Unamortized cost in year three 1,601,000    
Amortization of content assets $ 6,344,154 $ 4,174,556 $ 3,262,281
v3.22.4
Balance Sheet Components - Property and Equipment and Accumulated Depreciation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 2,151,998 $ 1,939,759
Less: Accumulated depreciation (753,741) (616,306)
Property and equipment, net $ 1,398,257 1,323,453
Maximum    
Property, Plant and Equipment [Line Items]    
Estimated Useful Lives (in Years) 30 years  
Land    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 85,005 82,381
Buildings    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 52,106 48,123
Estimated Useful Lives (in Years) 30 years  
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 1,040,570 863,342
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 153,682 139,809
Estimated Useful Lives (in Years) 3 years  
Information technology    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 442,681 380,452
Estimated Useful Lives (in Years) 3 years  
Corporate aircraft    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 115,578 110,978
Corporate aircraft | Minimum    
Property, Plant and Equipment [Line Items]    
Estimated Useful Lives (in Years) 8 years  
Corporate aircraft | Maximum    
Property, Plant and Equipment [Line Items]    
Estimated Useful Lives (in Years) 10 years  
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 26,821 32,426
Machinery and equipment | Minimum    
Property, Plant and Equipment [Line Items]    
Estimated Useful Lives (in Years) 3 years  
Machinery and equipment | Maximum    
Property, Plant and Equipment [Line Items]    
Estimated Useful Lives (in Years) 5 years  
Capital work-in-progress    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 235,555 $ 282,248
v3.22.4
Balance Sheet Components - Leases (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
option
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Lessee, Lease, Description [Line Items]      
Number of renewal options (or more) | option 1    
Lease Cost:      
Operating lease cost $ 413,664 $ 389,805 $ 323,905
Short-term lease cost 194,764 152,765 116,606
Total lease cost 608,428 542,570 440,511
Cash paid for operating lease liabilities 413,034 349,586 259,559
Right-of-use assets obtained in exchange for new operating lease obligations 252,393 764,142 $ 729,942
Operating lease right-of-use assets, net 2,227,122 2,446,573  
Current operating lease liabilities 355,985 315,189  
Non current operating lease liabilities 2,222,503 2,408,486  
Total operating lease liabilities $ 2,578,488 $ 2,723,675  
Weighted-average remaining lease term 8 years 3 months 18 days 9 years 2 months 12 days  
Weighted-average discount rate 3.20% 3.10%  
Operating lease, liability, leases not commenced $ 419,000    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other non-current assets Other non-current assets  
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Accrued Liabilities, Current Accrued Liabilities, Current  
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Other non-current liabilities Other non-current liabilities  
Minimum      
Lessee, Lease, Description [Line Items]      
Lease term of contract (in years) 1 year    
Lease renewal term (in years) 1 year    
Lease Cost:      
Lease not yet commenced, term of contract (in years) 2 years    
Maximum      
Lessee, Lease, Description [Line Items]      
Lease term of contract (in years) 15 years    
Lease renewal term (in years) 20 years    
Lease Cost:      
Lease not yet commenced, term of contract (in years) 10 years    
v3.22.4
Balance Sheet Components - Lease Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]    
2023 $ 433,167  
2024 406,293  
2025 377,371  
2026 368,496  
2027 310,903  
Thereafter 1,036,327  
Total lease liabilities 2,932,557  
Less imputed interest (354,069)  
Total operating lease liabilities $ 2,578,488 $ 2,723,675
v3.22.4
Balance Sheet Components - Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]    
Trade receivables $ 988,898 $ 804,320
Prepaid expenses 392,735 323,818
Other 1,826,388 913,883
Total other current assets 3,208,021 $ 2,042,021
Tax incentives $ 598,000  
v3.22.4
Debt - Narrative (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2022
EUR (€)
Debt Instrument [Line Items]        
Aggregate outstanding notes $ 14,353,000 $ 15,393,000    
Debt issuance costs 79,000 92,000    
Long-term notes denominated in foreign currency 14,432,000 15,485,000    
Foreign currency remeasurement loss (gain) on debt (353,111) $ (430,661) $ 533,278  
Senior Notes        
Debt Instrument [Line Items]        
Long-term notes denominated in foreign currency | €       € 5,170,000,000
Foreign currency remeasurement loss (gain) on debt $ (353,000)      
Redemption price, percent of outstanding principal 101.00%      
v3.22.4
Debt - Summary of Long-term Debt (Details)
$ in Millions
Dec. 31, 2022
EUR (€)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
EUR (€)
Dec. 31, 2021
USD ($)
Debt Instrument [Line Items]        
Face amount   $ 14,432   $ 15,485
Long-term debt, fair value   $ 14,083   $ 18,030
Senior Notes        
Debt Instrument [Line Items]        
Face amount | € € 5,170,000,000      
Senior Notes | 5.500% Senior Notes        
Debt Instrument [Line Items]        
Interest rate 5.50% 5.50% 5.50% 5.50%
Face amount   $ 0   $ 700
Long-term debt, fair value   $ 0   $ 704
Senior Notes | 5.750% Senior Notes        
Debt Instrument [Line Items]        
Interest rate 5.75% 5.75% 5.75% 5.75%
Face amount   $ 400   $ 400
Long-term debt, fair value   $ 404   $ 437
Senior Notes | 5.875% Senior Notes        
Debt Instrument [Line Items]        
Interest rate 5.875% 5.875% 5.875% 5.875%
Face amount   $ 800   $ 800
Long-term debt, fair value   $ 811   $ 899
Senior Notes | 3.000% Senior Notes        
Debt Instrument [Line Items]        
Interest rate 3.00% 3.00% 3.00% 3.00%
Face amount € 470,000,000 $ 503 € 470,000,000 $ 535
Long-term debt, fair value   $ 495   $ 581
Senior Notes | 3.625% Senior Notes        
Debt Instrument [Line Items]        
Interest rate 3.625% 3.625% 3.625% 3.625%
Face amount   $ 500   $ 500
Long-term debt, fair value   $ 479   $ 529
Senior Notes | 4.375% Senior Notes        
Debt Instrument [Line Items]        
Interest rate 4.375% 4.375% 4.375% 4.375%
Face amount   $ 1,000   $ 1,000
Long-term debt, fair value   $ 980   $ 1,111
Senior Notes | 3.625% Senior Notes        
Debt Instrument [Line Items]        
Interest rate 3.625% 3.625% 3.625% 3.625%
Face amount € 1,300,000,000 $ 1,391 € 1,300,000,000 $ 1,480
Long-term debt, fair value   $ 1,338   $ 1,702
Senior Notes | 4.875% Senior Notes        
Debt Instrument [Line Items]        
Interest rate 4.875% 4.875% 4.875% 4.875%
Face amount   $ 1,600   $ 1,600
Long-term debt, fair value   $ 1,557   $ 1,829
Senior Notes | 5.875% Senior Notes        
Debt Instrument [Line Items]        
Interest rate 5.875% 5.875% 5.875% 5.875%
Face amount   $ 1,900   $ 1,900
Long-term debt, fair value   $ 1,930   $ 2,293
Senior Notes | 4.625% Senior Notes        
Debt Instrument [Line Items]        
Interest rate 4.625% 4.625% 4.625% 4.625%
Face amount € 1,100,000,000 $ 1,177 € 1,100,000,000 $ 1,252
Long-term debt, fair value   $ 1,151   $ 1,565
Senior Notes | 6.375% Senior Notes        
Debt Instrument [Line Items]        
Interest rate 6.375% 6.375% 6.375% 6.375%
Face amount   $ 800   $ 800
Long-term debt, fair value   $ 830   $ 999
Senior Notes | 3.875% Senior Notes        
Debt Instrument [Line Items]        
Interest rate 3.875% 3.875% 3.875% 3.875%
Face amount € 1,200,000,000 $ 1,284 € 1,200,000,000 $ 1,366
Long-term debt, fair value   $ 1,201   $ 1,651
Senior Notes | 5.375% Senior Notes        
Debt Instrument [Line Items]        
Interest rate 5.375% 5.375% 5.375% 5.375%
Face amount   $ 900   $ 900
Long-term debt, fair value   $ 885   $ 1,068
Senior Notes | 3.625% Senior Notes        
Debt Instrument [Line Items]        
Interest rate 3.625% 3.625% 3.625% 3.625%
Face amount € 1,100,000,000 $ 1,177 € 1,100,000,000 $ 1,252
Long-term debt, fair value   $ 1,078   $ 1,493
Senior Notes | 4.875% Senior Notes        
Debt Instrument [Line Items]        
Interest rate 4.875% 4.875% 4.875% 4.875%
Face amount   $ 1,000   $ 1,000
Long-term debt, fair value   $ 944   $ 1,169
v3.22.4
Debt - Revolving Line of Credit (Details) - Revolving Credit Facility
 12 Months Ended
Dec. 31, 2022
USD ($)
Line of Credit Facility [Line Items]  
Line of credit facility, maximum borrowing capacity $ 1,000,000,000
Amount borrowed $ 0
Commitment fee percentage 0.10%
London Interbank Offered Rate (LIBOR)  
Line of Credit Facility [Line Items]  
Basis spread on variable rate 0.75%
Federal Funds Rate  
Line of Credit Facility [Line Items]  
Basis spread on variable rate 0.50%
One-Month LIBOR Rate  
Line of Credit Facility [Line Items]  
Basis spread on variable rate 1.00%
One-Month LIBOR Rate | Minimum  
Line of Credit Facility [Line Items]  
Basis spread on variable rate 0.00%
v3.22.4
Commitments and Contingencies - Streaming Content (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Contractual Obligation [Line Items]    
Total streaming content obligations $ 21,831,947 $ 23,161,360
Current content liabilities 4,480,150 4,292,967
Non-current content liabilities 3,081,277 3,094,213
Unrecorded streaming obligations 14,200,000 15,800,000
Current Content Liabilities    
Contractual Obligation [Line Items]    
Current content liabilities 4,500,000 4,300,000
Non-current Content Liabilities    
Contractual Obligation [Line Items]    
Non-current content liabilities $ 3,100,000 $ 3,100,000
v3.22.4
Commitments and Contingencies - Expected Timing of Payments for Commitments (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]    
Less than one year $ 10,038,483 $ 10,019,306
Due after one year and through 3 years 9,425,551 9,238,315
Due after 3 years and through 5 years 2,124,307 3,238,977
Due after 5 years 243,606 664,762
Total content obligations $ 21,831,947 $ 23,161,360
v3.22.4
Guarantees—Indemnification Obligations (Details)
Dec. 31, 2022
USD ($)
Indemnification Agreement  
Loss Contingencies [Line Items]  
Indemnification guarantee accrual $ 0
v3.22.4
Stockholders' Equity - Voting Rights (Details)
 12 Months Ended
Dec. 31, 2022
vote
Stockholders' Equity Note [Abstract]  
Number of voting rights per share 1
v3.22.4
Stockholders' Equity - Stock Option Plans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Shares available for grant (in shares) 16,454,103 20,145,360 21,702,085 6,111,561
Aggregate intrinsic value $ 1,951,000      
Total intrinsic value of options exercised $ 346,000 $ 1,363,000 $ 1,596,000  
Weighted-average remaining contractual term (in years) 5 years 7 months 9 days      
Proceeds from issuance of common stock $ 35,746 $ 174,414 $ 235,406  
Expiration period (in years) 10 years      
2020 Stock Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Shares available for grant (in shares) 17,500,000      
2011 Stock Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Shares available for grant (in shares) 5,530,106      
v3.22.4
Stockholders' Equity - Summary of Activity Related to Stock Option Plans (Details) - $ / shares
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]      
Shares available for grant, beginning balances (in shares) 20,145,360 21,702,085 6,111,561
Options outstanding, number of shares, beginning balance (in shares) 17,595,851 18,676,810 20,859,326
Shares available for grant, number of shares authorized (in shares)     17,500,000
Options outstanding, number of shares granted (in shares) 3,691,257 1,556,725 1,909,476
Options outstanding, number of shares, exercised (in shares) (1,383,669) (2,632,324) (4,088,612)
Options outstanding, number of shares expired (in shares) (6,578) (5,360) (3,380)
Shares available for grant, ending balances (in shares) 16,454,103 20,145,360 21,702,085
Options outstanding, number of shares, ending balance (in shares) 19,896,861 17,595,851 18,676,810
Weighted- Average Exercise Price (per Share)      
Options outstanding, weighted-average exercise price, beginning balance (dollars per share) $ 219.83 $ 170.23 $ 124.28
Options outstanding, weighted-average exercise price, granted (dollars per share) 267.94 554.11 432.34
Options outstanding, weighted-average exercise price, exercised (dollars per share) 27.19 65.97 58.35
Options expired, weighted-average exercise price (dollars per share) 11.10 34.63 27.54
Options outstanding, weighted-average exercise price, ending balance (dollars per share) $ 242.22 $ 219.83 $ 170.23
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]      
Options outstanding, number of shares, vested and exercisable (in shares) 19,896,861    
Options outstanding, weighted-average exercise price, vested and exercisable (in dollars per share) $ 242.22    
v3.22.4
Stockholders' Equity - Summary of Assumptions Used to Value Stock Option Grants (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Stockholders' Equity Note [Abstract]      
Dividend yield 0.00% 0.00% 0.00%
Expected volatility, minimum 38.00% 34.00% 37.00%
Expected volatility, maximum 52.00% 41.00% 45.00%
Risk-free interest rate, minimum 1.71% 1.08% 0.67%
Risk-free interest rate, maximum 3.79% 1.62% 1.71%
Suboptimal exercise factor, minimum 4.71 3.81 3.34
Suboptimal exercise factor, maximum 4.82 3.98 3.67
Valuation data:      
Weighted-average fair value (in dollars per share) $ 155.88 $ 259.01 $ 217.42
Total stock-based compensation expense $ 575,452 $ 403,220 $ 415,180
Total income tax impact on provision $ 127,289 $ 89,642 $ 91,718
v3.22.4
Stockholders' Equity - Stock Repurchases (Details) - USD ($)
$ in Billions
Dec. 31, 2022
Mar. 31, 2021
Stockholders' Equity Note [Abstract]    
Common stock authorized to be repurchased   $ 5.0
Remaining authorized repurchase amount $ 4.4  
v3.22.4
Income Taxes - Schedule of Income before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
United States $ 4,690,442 $ 5,365,547 $ 2,789,064
Foreign 573,487 474,556 410,285
Income before income taxes $ 5,263,929 $ 5,840,103 $ 3,199,349
v3.22.4
Income Taxes - Components of Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current tax provision:      
Federal $ 109,910 $ 57,526 $ 24,221
State 119,795 109,641 65,821
Foreign 676,827 357,189 277,846
Total current 906,532 524,356 367,888
Deferred tax provision:      
Federal (52,434) 188,937 (57,765)
State (30,691) (2,700) 164,685
Foreign (51,402) 13,282 (36,854)
Total deferred (134,527) 199,519 70,066
Provision for income taxes $ 772,005 $ 723,875 $ 437,954
v3.22.4
Income Taxes - Reconciliation of Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Expected tax expense at U.S. Federal statutory rates $ 1,105,428 $ 1,226,422 $ 671,864
State income taxes, net of Federal income tax effect 92,084 111,400 65,808
Foreign earnings at other than U.S. rates 112,628 (23,963) 12,212
Federal and California R&D tax credits (146,615) (82,909) (113,882)
Valuation allowance on California R&D tax credits 0 0 183,283
Excess tax benefits on stock-based compensation (75,211) (290,899) (339,436)
Tax effects of the Tax Cuts and Jobs Act (368,976) (254,763) (87,194)
Nondeductible Officers Compensation 33,836 26,874 30,351
Other 18,831 11,713 14,948
Provision for income taxes $ 772,005 $ 723,875 $ 437,954
Effective Tax Rate 15.00% 12.00% 14.00%
v3.22.4
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Deferred tax assets:    
Stock-based compensation $ 443,456 $ 351,238
Federal and California tax R&D credits 342,589 484,793
Foreign tax credits 11,899 2,045
Capitalized Research Expenses 323,998 0
Accruals and reserves 119,732 165,214
Operating leases 551,418 570,830
Foreign Net Operating Losses 20,092 8,043
Unrealized Gain/Loss (47,283) 13,772
Other 2,234 5,420
Gross deferred tax assets 1,768,135 1,601,355
Depreciation & amortization (456,717) (388,115)
Operating leases (473,928) (506,403)
Acquisitions (232,607) (240,334)
Gross deferred tax liabilities (1,163,252) (1,134,852)
Valuation allowance (343,342) (318,408)
Net deferred tax assets $ 261,541 $ 148,095
v3.22.4
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Operating Loss Carryforwards [Line Items]      
Deferred tax asset valuation allowance $ 343,342 $ 318,408  
Unrecognized tax benefits 226,977 202,557 $ 140,124
Reduction in provision for income taxes due to impact of effective tax rate 155,000 $ 136,000  
State tax authority      
Operating Loss Carryforwards [Line Items]      
Tax credit carryforward, amount $ 504,000    
v3.22.4
Income Taxes - Summary of Changes in Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]    
Beginning Balance $ 202,557 $ 140,124
Increases related to tax positions taken during prior periods 0 27,116
Decreases related to tax positions taken during prior periods (2,445) 0
Increases related to tax positions taken during the current period 26,865 35,317
Decreases related to expiration of statute of limitations 0 0
Ending Balance $ 226,977 $ 202,557
v3.22.4
Employee Benefit Plan - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Retirement Benefits [Abstract]      
Eligible employees maximum contribution percentage 80.00%    
Contributions by employer $ 102 $ 85 $ 69
v3.22.4
Employee Benefit Plan - Multiemployer Plan (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Multiemployer Plan [Line Items]      
Total contributions $ 224,170 $ 194,286 $ 130,382
Multiemployer Plan, Type [Extensible List] Other Pension, Postretirement and Supplemental Plans [Member]    
Pension benefits      
Multiemployer Plan [Line Items]      
Total contributions $ 127,885 111,133 78,060
Health benefits      
Multiemployer Plan [Line Items]      
Total contributions $ 96,285 $ 83,153 $ 52,322
v3.22.4
Segment and Geographic Information (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
segment
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]      
Number of operating segments | segment 1    
Revenues $ 31,615,550 $ 29,697,844 $ 24,996,056
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues $ 13,000,000 $ 12,100,000 $ 10,800,000
v3.22.4
Segment and Geographic Information - Long-lived Assets by Geographic Areas (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 2,745,071 $ 2,833,059
International    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 880,308 $ 936,967