NETFLIX INC, 10-K filed on 1/28/2021
Annual Report
v3.20.4
Cover - USD ($)
 12 Months Ended
Dec. 31, 2020
Jun. 30, 2020
Cover [Abstract]    
Document Type 10-K  
Document Annual Report true  
Document Period End Date Dec. 31, 2020  
Current Fiscal Year End Date --12-31  
Document Transition Report false  
Entity File Number 001-35727  
Entity Registrant Name Netflix, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 77-0467272  
Entity Address, Address Line One 100 Winchester Circle,  
Entity Address, City or Town Los Gatos  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 95032  
City Area Code 408  
Local Phone Number 540-3700  
Title of 12(b) Security Common stock, par value $0.001 per share  
Trading Symbol NFLX  
Security Exchange Name NASDAQ  
Entity Well-known Seasoned Issuer Yes  
Entity Voluntary Filers No  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
ICFR Auditor Attestation Flag true  
Entity Shell Company false  
Entity Public Float   $ 196,932,116,552
Entity Common Stock, Shares Outstanding 442,895,261  
Documents Incorporated by Reference Parts of the registrant’s Proxy Statement for the registrant’s 2021 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K.  
Entity Central Index Key 0001065280  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus FY  
Amendment Flag false  
v3.20.4
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Statement [Abstract]      
Revenues $ 24,996,056 $ 20,156,447 $ 15,794,341
Cost of revenues 15,276,319 12,440,213 9,967,538
Marketing 2,228,362 2,652,462 2,369,469
Technology and development 1,829,600 1,545,149 1,221,814
General and administrative 1,076,486 914,369 630,294
Operating income 4,585,289 2,604,254 1,605,226
Other income (expense):      
Interest expense (767,499) (626,023) (420,493)
Interest and other income (expense) (618,441) 84,000 41,725
Income before income taxes 3,199,349 2,062,231 1,226,458
Provision for income taxes (437,954) (195,315) (15,216)
Net income $ 2,761,395 $ 1,866,916 $ 1,211,242
Earnings per share:      
Basic (in USD per share) $ 6.26 $ 4.26 $ 2.78
Diluted (in USD per share) $ 6.08 $ 4.13 $ 2.68
Weighted-average common shares outstanding:      
Basic (in shares) 440,922 437,799 435,374
Diluted (in shares) 454,208 451,765 451,244
v3.20.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Statement of Comprehensive Income [Abstract]      
Net income $ 2,761,395 $ 1,866,916 $ 1,211,242
Other comprehensive income (loss):      
Foreign currency translation adjustments 67,919 (3,939) 975
Comprehensive income $ 2,829,314 $ 1,862,977 $ 1,212,217
v3.20.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Cash flows from operating activities:      
Net income $ 2,761,395 $ 1,866,916 $ 1,211,242
Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
Additions to content assets (11,779,284) (13,916,683) (13,043,437)
Change in content liabilities (757,433) (694,011) 999,880
Amortization of content assets 10,806,912 9,216,247 7,532,088
Depreciation and amortization of property, equipment and intangibles 115,710 103,579 83,157
Stock-based compensation expense 415,180 405,376 320,657
Foreign currency remeasurement loss (gain) on debt 533,278 (45,576) (73,953)
Other non-cash items 293,126 228,230 81,640
Deferred income taxes 70,066 (94,443) (85,520)
Changes in operating assets and liabilities:      
Other current assets (187,623) (252,113) (200,192)
Accounts payable (41,605) 96,063 199,198
Accrued expenses and other liabilities 198,183 157,778 150,422
Deferred revenue 193,247 163,846 142,277
Other non-current assets and liabilities (194,075) (122,531) 2,062
Net cash provided by (used in) operating activities 2,427,077 (2,887,322) (2,680,479)
Cash flows from investing activities:      
Purchases of property and equipment (497,923) (253,035) (173,946)
Change in other assets (7,431) (134,029) (165,174)
Net cash used in investing activities (505,354) (387,064) (339,120)
Cash flows from financing activities:      
Proceeds from issuance of debt 1,009,464 4,469,306 3,961,852
Debt issuance costs (7,559) (36,134) (35,871)
Proceeds from issuance of common stock 235,406 72,490 124,502
Other financing activities 0 0 (1,956)
Net cash provided by financing activities 1,237,311 4,505,662 4,048,527
Effect of exchange rate changes on cash, cash equivalents and restricted cash 36,050 469 (39,682)
Net increase in cash, cash equivalents and restricted cash 3,195,084 1,231,745 989,246
Cash and cash equivalents, beginning of year 5,043,786 3,812,041 2,822,795
Cash, cash equivalents and restricted cash, end of year 8,238,870 5,043,786 3,812,041
Supplemental disclosure:      
Income taxes paid 291,582 400,658 131,069
Interest paid $ 762,904 $ 599,132 $ 375,831
v3.20.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Current assets:    
Cash and cash equivalents $ 8,205,550 $ 5,018,437
Other current assets 1,556,030 1,160,067
Total current assets 9,761,580 6,178,504
Content assets, net 25,383,950 24,504,567
Property and equipment, net 960,183 565,221
Other non-current assets 3,174,646 2,727,420
Total assets 39,280,359 33,975,712
Current liabilities:    
Current content liabilities 4,429,536 4,413,561
Accounts payable 656,183 674,347
Accrued expenses and other liabilities 1,102,196 843,043
Deferred revenue 1,117,992 924,745
Short-term debt 499,878 0
Total current liabilities 7,805,785 6,855,696
Non-current content liabilities 2,618,084 3,334,323
Long-term debt 15,809,095 14,759,260
Other non-current liabilities 1,982,155 1,444,276
Total liabilities 28,215,119 26,393,555
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, $0.001 par value; 10,000,000 shares authorized at December 31, 2020 and 2019; no shares issued and outstanding at December 31, 2020 and 2019 0 0
Common stock, 0.001 par value; 4,990,000,000 shares authorized at December 31, 2020 and December 31, 2019, respectively; 442,895,261 and 438,806,649 issued and outstanding at December 31, 2020 and December 31, 2019, respectively 3,447,698 2,793,929
Accumulated other comprehensive income (loss) 44,398 (23,521)
Retained earnings 7,573,144 4,811,749
Total stockholders’ equity 11,065,240 7,582,157
Total liabilities and stockholders’ equity $ 39,280,359 $ 33,975,712
v3.20.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2020
Dec. 31, 2019
Statement of Financial Position [Abstract]    
Preferred stock, par value (in USD per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in USD per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 4,990,000,000 4,990,000,000
Common stock, shares issued (in shares) 442,895,261 438,806,649
Common stock, shares outstanding (in shares) 442,895,261 438,806,649
v3.20.4
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock and Additional Paid-in Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
Beginning Balance (in shares) at Dec. 31, 2017     433,392,686      
Beginning Balance at Dec. 31, 2017 $ 3,581,956   $ 1,871,396 $ (20,557) $ 1,731,117  
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 1,211,242       1,211,242  
Other comprehensive income (loss) $ 975     975    
Issuance of common stock upon exercise of options (in shares) 3,205,911   3,205,911      
Issuance of common stock upon exercise of options $ 123,935   $ 123,935      
Stock-based compensation expense 320,657   $ 320,657      
Ending Balance (in shares) at Dec. 31, 2018     436,598,597      
Ending Balance at Dec. 31, 2018 $ 5,238,765 $ 2,474 $ 2,315,988 (19,582) 2,942,359 $ 2,474
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Accounting Standards Update [Extensible List] us-gaap:AccountingStandardsUpdate201602Member          
Net income $ 1,866,916       1,866,916  
Other comprehensive income (loss) $ (3,939)     (3,939)    
Issuance of common stock upon exercise of options (in shares) 2,208,052   2,208,052      
Issuance of common stock upon exercise of options $ 72,565   $ 72,565      
Stock-based compensation expense 405,376   $ 405,376      
Ending Balance (in shares) at Dec. 31, 2019     438,806,649      
Ending Balance at Dec. 31, 2019 7,582,157   $ 2,793,929 (23,521) 4,811,749  
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 2,761,395       2,761,395  
Other comprehensive income (loss) $ 67,919     67,919    
Issuance of common stock upon exercise of options (in shares) 4,088,612   4,088,612      
Issuance of common stock upon exercise of options $ 238,589   $ 238,589      
Stock-based compensation expense 415,180   $ 415,180      
Ending Balance (in shares) at Dec. 31, 2020     442,895,261      
Ending Balance at Dec. 31, 2020 $ 11,065,240   $ 3,447,698 $ 44,398 $ 7,573,144  
v3.20.4
Organization and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Summary of Significant Accounting Policies Organization and Summary of Significant Accounting Policies
Description of Business
Netflix, Inc. (the “Company”) was incorporated on August 29, 1997 and began operations on April 14, 1998. The Company is one of the world’s leading entertainment services with approximately 204 million paid memberships in over 190 countries enjoying TV series, documentaries and feature films across a wide variety of genres and languages. Members can watch as much as they want, anytime, anywhere, on any internet-connected screen. Members can play, pause and resume watching, all without commercials. Additionally, the Company continues to offer its DVD-by-mail service in the United States ("U.S.").
Basis of Presentation
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated.
Use of Estimates
The preparation of consolidated financial statements in conformity with generally accepted accounting principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions include the content asset amortization policy and the recognition and measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results may differ from these estimates.
Recently adopted accounting pronouncements
In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326), in order to improve financial reporting of expected credit losses on financial instruments and other commitments to extend credit. ASU 2016-13 requires that an entity measure and recognize expected credit losses for financial assets held at amortized cost and replaces the incurred loss impairment methodology in prior GAAP with a methodology that requires consideration of a broader range of information to estimate credit losses. The Company adopted ASU 2016-13 in the first quarter of 2020 and the impact of the adoption was not material to the Company's consolidated financial statements as credit losses are not expected to be significant based on historical collection trends, the financial condition of payment partners, and external market factors.
Recently issued accounting pronouncements not yet adopted
In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). ASU 2019-12 removes certain exceptions for performing intraperiod tax allocations, recognizing deferred taxes for investments, and calculating income taxes in interim periods. The guidance also simplifies the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill, and the effect of enacted changes in tax laws or rates in interim periods. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. While the Company is continuing to assess the potential impacts of ASU 2019-12, it does not expect ASU 2019-12 to have a material effect, if any, on its financial statements.
Cash Equivalents
The Company considers investments in instruments purchased with an original maturity of 90 days or less to be cash equivalents. The Company also classifies amounts in transit from payment processors for customer credit card and debit card transactions as cash equivalents.
Content
The Company acquires, licenses and produces content, including original programming, in order to offer members unlimited viewing of video entertainment. The content licenses are for a fixed fee and specific windows of availability.
Payment terms for certain content licenses and the production of content require more upfront cash payments relative to the amortization expense. Payments for content, including additions to content assets and the changes in related liabilities, are classified within "Net cash provided by (used in) operating activities" on the Consolidated Statements of Cash Flows.
The Company recognizes content assets (licensed and produced) as “Content assets, net” on the Consolidated Balance Sheets. For licensed content, the Company capitalizes the fee per title and records a corresponding liability at the gross amount of the liability when the license period begins, the cost of the title is known and the title is accepted and available for streaming. For produced content, the Company capitalizes costs associated with the production, including development costs, direct costs and production overhead. Participations and residuals are expensed in line with the amortization of production costs.
Based on factors including historical and estimated viewing patterns, the Company amortizes the content assets (licensed and produced) in “Cost of revenues” on the Consolidated Statements of Operations over the shorter of each title's contractual window of availability or estimated period of use or ten years, beginning with the month of first availability. The amortization is on an accelerated basis, as the Company typically expects more upfront viewing, for instance due to additional merchandising and marketing efforts and film amortization is more accelerated than TV series amortization. On average, over 90% of a licensed or produced content asset is expected to be amortized within four years after its month of first availability. The Company reviews factors impacting the amortization of the content assets on an ongoing basis. The Company's estimates related to these factors require considerable management judgment.
The Company's business model is subscription based as opposed to a model generating revenues at a specific title level. Content assets (licensed and produced) are predominantly monetized as a group and therefore are reviewed in aggregate at a group level when an event or change in circumstances indicates a change in the expected usefulness of the content or that the fair value may be less than unamortized cost. To date, the Company has not identified any such event or changes in circumstances. If such changes are identified in the future, these aggregated content assets will be stated at the lower of unamortized cost or fair value. In addition, unamortized costs for assets that have been, or are expected to be, abandoned are written off.
Property and Equipment
Property and equipment are carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the shorter of the estimated useful lives of the respective assets, generally up to 30 years, or the expected lease term for leasehold improvements, if applicable.
Trade Receivables
Trade receivables consist primarily of amounts related to members and payment partners that collect membership fees on the Company's behalf. The Company evaluates the need for an allowance for doubtful accounts based on historical collection trends, the financial condition of its payment partners, and external market factors.
Marketing
Marketing expenses consist primarily of advertising expenses and certain payments made to the Company’s partners, including consumer electronics ("CE") manufacturers, multichannel video programming distributors ("MVPDs"), mobile operators and internet service providers ("ISPs"). Advertising expenses include promotional activities such as digital and television advertising. Advertising costs are expensed as incurred. Advertising expenses were $1,447 million, $1,879 million and $1,808 million for the years ended December 31, 2020, 2019 and 2018, respectively. Marketing expenses also include payroll and related expenses for personnel that support the Company's marketing activities.
Research and Development
Research and development expenses consist of payroll and related costs incurred in making improvements to our service offerings. Research and development expenses were $1,984 million, $1,673 million and $1,218 million for the years ended December 31, 2020, 2019 and 2018, respectively.
Income Taxes
The Company records a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Deferred income taxes are recognized by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as net operating loss and tax credit carryforwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance for any tax benefits for which future realization is uncertain.
The Company did not recognize certain tax benefits from uncertain tax positions within the provision for income taxes. The Company may recognize a tax benefit only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. See Note 10 to the consolidated financial statements for further information regarding income taxes.
Foreign Currency
The functional currency for the Company's subsidiaries is determined based on the primary economic environment in which the subsidiary operates. The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenues and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in cumulative translation adjustment included in "Accumulated other comprehensive income (loss)" in Stockholders’ equity on the Consolidated Balance Sheets.
The Company remeasures monetary assets and liabilities that are not denominated in the functional currency at exchange rates in effect at the end of each period. Gains and losses from these remeasurements are recognized in interest and other income (expense). Foreign currency transactions resulted in a loss of $660 million, a gain of $7 million, and a loss of $1 million for the years ended December 31, 2020, 2019 and 2018, respectively. These gains and losses were primarily due to the non-cash remeasurement of our Senior Notes denominated in euros and the remeasurement of cash and content liability positions denominated in currencies other than functional currencies.
Stock-Based Compensation
The Company grants fully vested non-qualified stock options to its employees on a monthly basis. As a result of immediate vesting, stock-based compensation expense is fully recognized on the grant date, and no estimate is required for post-vesting option forfeitures. See Note 9 to the consolidated financial statements for further information regarding stock-based compensation.
v3.20.4
Revenue Recognition
 12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The Company's primary source of revenues is from monthly membership fees. Members are billed in advance of the start of their monthly membership and revenues are recognized ratably over each monthly membership period. Revenues are presented net of the taxes that are collected from members and remitted to governmental authorities. The Company is the principal in all its relationships where partners, including CE manufacturers, MVPDs, mobile operators and ISPs, provide access to the service as the Company retains control over service delivery to its members. Typically, payments made to the partners, such as for marketing, are expensed. However, if there is no distinct service provided in exchange for the payments made to the partners or if the price that the member pays is established by the partners and there is no standalone price for the Netflix service (for instance, in a bundle), these payments are recognized as a reduction of revenues.
The following tables summarize streaming revenues, paid net membership additions, and ending paid memberships by region for the years December 31, 2020, 2019 and 2018, respectively:
United States and Canada (UCAN)
As of/ Year Ended December 31,
 202020192018
 (in thousands)
Revenues$11,455,396 $10,051,208 $8,281,532 
Paid net membership additions6,274 2,905 6,335 
Paid memberships at end of period73,936 67,662 64,757 

Europe, Middle East, and Africa (EMEA)
As of/ Year Ended December 31,
 202020192018
 (in thousands)
Revenues$7,772,252 $5,543,067 $3,963,707 
Paid net membership additions14,920 13,960 11,814 
Paid memberships at end of period66,698 51,778 37,818 

Latin America (LATAM)
As of/ Year Ended December 31,
 202020192018
 (in thousands)
Revenues$3,156,727 $2,795,434 $2,237,697 
Paid net membership additions6,120 5,340 6,360 
Paid memberships at end of period37,537 31,417 26,077 


Asia-Pacific (APAC)
As of/ Year Ended December 31,
 202020192018
 (in thousands)
Revenues$2,372,300 $1,469,521 $945,816 
Paid net membership additions9,259 5,626 4,106 
Paid memberships at end of period25,492 16,233 10,607 
A paid membership (also referred to as a paid subscription) is defined as a membership that has the right to receive Netflix service following sign-up and a method of payment being provided, and that is not part of a free trial or certain other promotions that may be offered by the Company to new or rejoining members. A membership is canceled and ceases to be reflected in the above metrics as of the effective cancellation date. Voluntary cancellations generally become effective at the end of the prepaid membership period. Involuntary cancellations, as a result of a failed method of payment, become effective immediately. Memberships are assigned to territories based on the geographic location used at time of sign-up as determined by the Company’s internal systems, which utilize industry standard geo-location technology.
Total U.S. revenues, inclusive of DVD revenues not reported in the tables above, were $10.8 billion, $9.5 billion and $8.0 billion for the years ended December 31, 2020, 2019 and 2018, respectively. DVD revenues were $0.2 billion, $0.3 billion, and $0.4 billion for the years ended December 31, 2020, 2019 and 2018, respectively.
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, 2020, total deferred revenue was $1,118 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 $193 million increase in deferred revenue as compared to the balance of $925 million for the year ended December 31, 2019, is a result of the increase in membership fees billed due to increased memberships.
v3.20.4
Earnings Per Share
 12 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Earnings Per Share Earnings per Share
Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential common shares outstanding during the period. Potential common shares consist of incremental shares issuable upon the assumed exercise of stock options. The computation of earnings per share is as follows:
 
 Year ended December 31,
 202020192018
 (in thousands, except per share data)
Basic earnings per share:
Net income$2,761,395 $1,866,916 $1,211,242 
Shares used in computation:
Weighted-average common shares outstanding440,922 437,799 435,374 
Basic earnings per share$6.26 $4.26 $2.78 
Diluted earnings per share:
Net income$2,761,395 $1,866,916 $1,211,242 
Shares used in computation:
Weighted-average common shares outstanding440,922 437,799 435,374 
Employee stock options 13,286 13,966 15,870 
Weighted-average number of shares454,208 451,765 451,244 
Diluted earnings per share
$6.08 $4.13 $2.68 
Employee stock options with exercise prices greater than the average market price of the common stock were excluded from the diluted calculation as their inclusion would have been anti-dilutive. The following table summarizes the potential common shares excluded from the diluted calculation:
 
 Year ended December 31,
 202020192018
 (in thousands)
Employee stock options484 1,588 330 
v3.20.4
Cash, Cash Equivalents and Restricted Cash
 12 Months Ended
Dec. 31, 2020
Short-Term Investments And Fair Value Measurement [Abstract]  
Cash, Cash Equivalents and Restricted Cash Cash, Cash Equivalents and Restricted Cash
The following tables summarize the Company's cash, cash equivalents and restricted cash as of December 31, 2020 and 2019:
 As of December 31, 2020
 Cash and cash equivalentsOther Current AssetsNon-current AssetsTotal
 (in thousands)
Cash$3,331,860 $1,783 $31,284 $3,364,927 
Level 1 securities:
Money market funds4,573,690 — 253 4,573,943 
Level 2 securities:
Foreign Time Deposits300,000 — 300,000 
$8,205,550 $1,783 $31,537 $8,238,870 


 As of December 31, 2019
 Cash and cash equivalentsOther Current AssetsNon-current AssetsTotal
 (in thousands)
Cash$3,103,525 $1,863 $22,161 $3,127,549 
Level 1 securities:
Money market funds1,614,912 — 1,325 1,616,237 
Level 2 securities:
Foreign Time Deposits300,000 — — 300,000 
$5,018,437 $1,863 $23,486 $5,043,786 

Other current assets include restricted cash for deposits related to self insurance. Non-current assets include restricted cash related to letter of credit agreements. Foreign time deposits of $300 million, classified as Level 2 securities, were included in Cash and cash equivalents on the Company's Balance Sheet as of December 31, 2020 and December 31, 2019. The fair value of cash equivalents included in the Level 2 category is based on observable inputs, such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly.
See Note 6 to the consolidated financial statements for further information regarding the fair value of the Company’s senior notes.
v3.20.4
Balance Sheet Components
 12 Months Ended
Dec. 31, 2020
Balance Sheet Components Disclosure [Abstract]  
Balance Sheet Components Balance Sheet Components
Content Assets, Net
Content assets consisted of the following:
As of December 31,
20202019
(in thousands)
Licensed content, net
$13,747,607 $14,703,352 
Produced content, net
Released, less amortization
5,809,681 4,382,685 
In production
4,827,455 4,750,664 
In development and pre-production
999,207 667,866 
11,636,343 9,801,215 

Content assets, net$25,383,950 $24,504,567 
As of December 31, 2020, approximately $5,637 million, $3,494 million, and $2,134 million of the $13,748 million unamortized cost of the licensed content is expected to be amortized in each of the next three years. As of December 31, 2020, approximately $2,183 million, $1,629 million, and $1,092 million of the $5,810 million unamortized cost of the produced content that has been released is expected to be amortized in each of the next three years.
As of December 31, 2020, the amount of accrued participations and residuals was not material.
The following table represents the amortization of content assets:
Year ended December 31,
 202020192018
(in thousands)
Licensed content$7,544,631 $7,242,799 $6,511,689 
Produced content3,262,281 1,973,448 1,020,399 
Total$10,806,912 $9,216,247 $7,532,088 


Property and Equipment, Net
Property and equipment and accumulated depreciation consisted of the following:
As of December 31,Estimated Useful Lives (in Years)
20202019
(in thousands)
Land$50,700 $6,125 
Buildings42,717 33,141 30 years
Leasehold improvements524,537 354,999 Over life of lease
Furniture and fixtures110,185 87,465 
3-15 years
Information technology283,014 243,565 3 years
Corporate aircraft110,629 108,995 8 years
Machinery and equipment34,633 46,415 
3-5 years
Capital work-in-progress298,558 100,521 
Property and equipment, gross1,454,973 981,226 
Less: Accumulated depreciation(494,790)(416,005)
Property and equipment, net$960,183 $565,221 
    
Leases
The Company has entered into operating leases primarily for real estate. These leases generally have terms which range from 1 year to 15 years, and often include one or more options to renew. These renewal terms can extend the lease term from 1 year to 20 years, and are included in the lease term when it is reasonably certain that the Company will exercise the option. These operating leases are included in "Other non-current assets" on the Company's Consolidated Balance Sheets, and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligations to make lease payments are included in "Accrued expenses and other liabilities" and "Other non-current liabilities" on the Company's Consolidated Balance Sheets.  Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company has entered into various short-term operating leases, primarily for marketing billboards, with an initial term of twelve months or less. These leases are not recorded on the Company's Consolidated Balance Sheets. All operating lease expense is recognized on a straight-line basis over the lease term. For the year ended December 31, 2020, the Company recognized approximately $441 million in total lease costs, which was comprised of $324 million in operating lease costs for right-of-use assets and $117 million in short-term lease costs related to short-term operating leases. For the year ended December 31, 2019, the Company recognized approximately $448 million in total lease costs, which was comprised of $218 million in operating lease costs for right-of-use assets and $230 million in short-term lease costs related to short-term operating leases.
Prior to the adoption of ASU 2016-02 in the first quarter of 2019, the Company recognized minimum rental expense on a straight-line basis over the lease term. The Company used the date of initial possession to begin amortization, which is generally when the Company entered the space and began to make improvements in preparation for intended use. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial occupancy, the Company recorded minimum rental expenses on a straight-line basis over the terms of the leases in the Consolidated Statements of Operations. Rent expense associated with operating leases was $107 million for the year ended December 31, 2018.
Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company has certain contracts for real estate and marketing which may contain lease and non-lease components which it has elected to treat as a single lease component.
Information related to the Company's operating right-of-use assets and related operating lease liabilities were as follows:
Year ended December 31,
20202019
(in thousands)
Cash paid for operating lease liabilities$259,559 $192,084 
Right-of-use assets obtained in exchange for new operating lease obligations (1)729,942 1,672,462 

(1) Balance as of December 31, 2019 includes $743 million for operating leases existing on January 1, 2019.
As of December 31,
20202019
(in thousands, except lease term and discount rate)
Operating lease right-of-use assets, net$2,037,726 $1,532,285 
Current operating lease liabilities$256,222 $190,622 
Non-current operating lease liabilities1,945,631 1,422,612 
Total operating lease liabilities$2,201,853 $1,613,234 
Weighted-average remaining lease term8.9 years8.8 years
Weighted-average discount rate3.6 %5.0 %
Maturities of operating lease liabilities as of December 31, 2020 were as follows (in thousands):
Due in 12 month period ended December 31,
2021$320,245 
2022312,154 
2023300,014 
2024279,037 
2025258,348 
Thereafter1,100,115 
2,569,913 
Less imputed interest(368,060)
Total operating lease liabilities2,201,853 
Current operating lease liabilities 256,222 
Non-current operating lease liabilities1,945,631 
Total operating lease liabilities$2,201,853 
The Company has additional operating leases for real estate of $256 million which have not commenced as of December 31, 2020, and as such, have not been recognized on the Company's Consolidated Balance Sheets. These operating leases are expected to commence in 2021 with lease terms between 1 year and 15 years.


Other Current Assets
Other current assets consisted of the following:
As of
December 31,
2020		December 31,
2019
(in thousands)
Trade receivables
$610,819 $454,399 
Prepaid expenses
203,042 180,999 
Other
742,169 524,669 
Total other current assets
$1,556,030 $1,160,067 
v3.20.4
Debt
 12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Debt Debt
As of December 31, 2020, the Company had aggregate outstanding notes of $16,309 million, net of $107 million of issuance costs, with varying maturities (the "Notes"). Of the outstanding balance, $500 million, net of issuance costs, is classified as short-term debt on the Consolidated Balance Sheets. As of December 31, 2019, the Company had aggregate outstanding long-term notes of $14,759 million, net of $114 million of issuance costs. Each of the Notes were issued at par and are senior unsecured obligations of the Company. Interest is payable semi-annually at fixed rates. A portion of the outstanding Notes is denominated in foreign currency (comprised of €5,170 million) and is remeasured into U.S. dollars at each balance sheet date (with remeasurement loss totaling $533 million for the year ended December 31, 2020).

The following table provides a summary of the Company's outstanding debt and the fair values based on quoted market prices in less active markets as of December 31, 2020 and December 31, 2019:

Principal Amount at ParLevel 2 Fair Value as of
December 31,
2020		December 31,
2019		Issuance DateMaturityDecember 31,
2020		December 31,
2019
(in millions)(in millions)
5.375% Senior Notes
$500 $500 February 2013February 2021$502 $518 
5.500% Senior Notes
700 700 February 2015February 2022735 744 
5.750% Senior Notes
400 400 February 2014March 2024449 444 
5.875% Senior Notes
800 800 February 2015February 2025921 896 
3.000% Senior Notes (1)
574 — April 2020June 2025616 — 
3.625% Senior Notes
500 — April 2020June 2025535 — 
4.375% Senior Notes
1,000 1,000 October 2016November 20261,110 1,026 
3.625% Senior Notes (1)
1,588 1,459 May 2017May 20271,776 1,565 
4.875% Senior Notes
1,600 1,600 October 2017April 20281,807 1,670 
5.875% Senior Notes
1,900 1,900 April 2018November 20282,280 2,111 
4.625% Senior Notes (1)
1,344 1,234 October 2018May 20291,630 1,378 
6.375% Senior Notes
800 800 October 2018May 2029995 916 
3.875% Senior Notes (1)
1,466 1,346 April 2019November 20291,700 1,429 
5.375% Senior Notes
900 900 April 2019November 20291,061 960 
3.625% Senior Notes (1)
1,344 1,234 October 2019June 20301,533 1,273 
4.875% Senior Notes
1,000 1,000 October 2019June 20301,155 1,019 
$16,416 $14,873 $18,805 $15,949 

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

The expected timing of principal and interest payments for these Notes are as follows:
As of 
December 31,
2020		December 31, 2019
(in thousands)
Less than one year
$1,264,020 $736,969 
Due after one year and through three years
2,136,997 2,581,471 
Due after three years and through five years
3,614,906 1,705,201 
Due after five years
14,841,164 15,699,800 
Total debt obligations
$21,857,087 $20,723,441 
Each of the Notes are repayable in whole or in part upon the occurrence of a change of control, at the option of the holders, at a purchase price in cash equal to 101% of the principal plus accrued interest. The Company may redeem the Notes prior to maturity in whole or in part at an amount equal to the principal amount thereof plus accrued and unpaid interest and an applicable premium. The Notes include, among other terms and conditions, limitations on the Company's ability to create, incur or allow certain liens; enter into sale and lease-back transactions; create, assume, incur or guarantee additional indebtedness of certain of the Company's subsidiaries; and consolidate or merge with, or convey, transfer or lease all or substantially all of the Company's and its subsidiaries assets, to another person. As of December 31, 2020 and December 31, 2019, the Company was in compliance with all related covenants.

Revolving Credit Facility

As of December 31, 2020, the Company has a $750 million unsecured revolving credit facility (“Revolving Credit Agreement”), which matures on March 29, 2024. Revolving loans may be borrowed, repaid and reborrowed until March 29, 2024, at which time all amounts borrowed must be repaid. The Company may use the proceeds of future borrowings under the Revolving Credit Agreement for working capital and general corporate purposes. As of December 31, 2020, no amounts have been borrowed under the Revolving Credit Agreement.

The borrowings under the Revolving Credit Agreement bear interest, at the Company’s option, of either (i) a floating rate equal to a base rate (the “Alternate Base Rate”) or (ii) a rate equal to an adjusted London interbank offered rate (the “Adjusted LIBO Rate”), plus a margin of 0.75%. The Alternate Base Rate is defined as the greatest of (A) the rate of interest published by the Wall Street Journal, from time to time, as the prime rate, (B) the federal funds rate, plus 0.500% and (C) the Adjusted LIBO Rate for a one-month interest period, plus 1.00%. The Adjusted LIBO Rate is defined as the London interbank offered rate for deposits in U.S. dollars, for the relevant interest period, adjusted for statutory reserve requirements, but in no event shall the Adjusted LIBO Rate be less than 0.00% per annum. Regulatory authorities that oversee financial markets have announced that after the end of 2021, they would no longer compel banks currently reporting information used to set the LIBO Rate to continue to make rate submissions. As a result, it is possible that beginning in 2022, the LIBO Rate will no longer be available as a reference rate. Under the terms of the Company's Revolving Credit Agreement, in the event of the discontinuance of the LIBO Rate, a mutually agreed-upon alternate benchmark rate will be established to replace the LIBO Rate. The Company and Lenders shall in good faith establish an alternate benchmark rate which places the Lenders and the Company in the same economic position that existed immediately prior to the discontinuation of the LIBO Rate. The Company does not anticipate that the discontinuance of the LIBO Rate will materially impact its liquidity or financial position.

The Company is also obligated to pay a commitment fee on the undrawn amounts of the Revolving Credit Agreement at an annual rate of 0.10%. The Revolving Credit Agreement requires the Company to comply with certain covenants, including covenants that limit or restrict the ability of the Company’s subsidiaries to incur debt and limit or restrict the ability of the Company and its subsidiaries to grant liens and enter into sale and leaseback transactions; and, in the case of the Company or a guarantor, merge, consolidate, liquidate, dissolve or sell, transfer, lease or otherwise dispose of all or substantially all of the assets of the Company and its subsidiaries, taken as a whole. As of December 31, 2020 and December 31, 2019, the Company was in compliance with all related covenants.
v3.20.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Content
At December 31, 2020, the Company had $19.2 billion of obligations comprised of $4.4 billion included in "Current content liabilities" and $2.6 billion of "Non-current content liabilities" on the Consolidated Balance Sheets and $12.2 billion of obligations that are not reflected on the Consolidated Balance Sheets as they did not yet meet the criteria for asset recognition.
At December 31, 2019, the Company had $19.5 billion of obligations comprised of $4.4 billion included in "Current content liabilities" and $3.3 billion of "Non-current content liabilities" on the Consolidated Balance Sheets and $11.8 billion of obligations that are not reflected on the Consolidated Balance Sheets as they did not yet meet the criteria for asset recognition.
The expected timing of payments for these content obligations is as follows:
As of December 31,
20202019
 (in thousands)
Less than one year$8,980,868 $8,477,367 
Due after one year and through 3 years7,819,563 8,352,731 
Due after 3 years and through 5 years1,973,091 2,041,340 
Due after 5 years445,308 618,644 
Total content obligations$19,218,830 $19,490,082 
    
Content obligations include amounts related to the acquisition, licensing and production of content. Obligations that are in non-U.S. dollar currencies are translated to the U.S. dollar at period end rates. An obligation for the production of content includes non-cancelable commitments under creative talent and employment agreements as well as other production related commitments. An obligation for the acquisition and licensing of content is incurred at the time the Company enters into an agreement to obtain future titles. Once a title becomes available, a content liability is recorded on the Consolidated Balance Sheets. Certain agreements include the obligation to license rights for unknown future titles, the ultimate quantity and/or fees for which are not yet determinable as of the reporting date. Traditional film output deals, or certain TV series license agreements where the number of seasons to be aired is unknown, are examples of such license agreements. The Company does not include any estimated obligation for these future titles beyond the known minimum amount. However, the unknown obligations are expected to be significant.

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

The Company is involved in litigation matters not listed herein but does not consider the matters to be material either individually or in the aggregate at this time. The Company's view of the matters not listed may change in the future as the litigation and events related thereto unfold.
v3.20.4
Guarantees—Indemnification Obligations
 12 Months Ended
Dec. 31, 2020
Guarantees [Abstract]  
Guarantees—Indemnification Obligations Guarantees—Indemnification Obligations
In the ordinary course of business, the Company has entered into contractual arrangements under which it has agreed to provide indemnification of varying scope and terms to business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements and out of intellectual property infringement claims made by third parties. In these circumstances, payment may be conditional on the other party making a claim pursuant to the procedures specified in the particular contract.
The Company’s obligations under these agreements may be limited in terms of time or amount, and in some instances, the Company may have recourse against third parties for certain payments. In addition, the Company has entered into indemnification agreements with its directors and certain of its officers that will require it, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The terms of such obligations vary.
It is not possible to make a reasonable estimate of the maximum potential amount of future payments under these or similar agreements due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved in each particular agreement. No amount has been accrued in the accompanying consolidated financial statements with respect to these indemnification guarantees.
v3.20.4
Stockholders' Equity
 12 Months Ended
Dec. 31, 2020
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders’ Equity
Voting Rights
The holders of each share of common stock shall be entitled to one vote per share on all matters to be voted upon by the Company’s stockholders.
Stock Option Plan
On June 4, 2020, the Company's stockholders approved the 2020 Stock Plan, which was adopted by the Company's Board of Directors on March 4, 2020 subject to stockholder approval. The 2020 Stock Plan is the successor to the 2011 Stock Plan. The 2020 Stock Plan provides for the grant of incentive stock options to employees and for the grant of non-statutory stock options, stock appreciation rights, restricted stock and restricted stock units to employees, directors and consultants. The 2020 Stock Plan authorized 17,500,000 new shares to be available for award grants. As of the date the 2020 Stock Plan was adopted by the Company's Board of Directors, 5,530,106 shares were available to be granted under the 2011 Stock Plan. These shares are available for award grants under the 2020 Stock Plan.
A summary of the activities related to the Company’s stock option plans is as follows:
 
 Shares Available
for Grant		Options Outstanding
 Number of
Shares		Weighted- Average Exercise Price
(per Share)
Balances as of December 31, 201710,739,915 21,647,350 $61.13 
Granted(2,039,974)2,039,974 311.66 
Exercised— (3,205,911)38.66 
Expired— (2,135)4.60 
Balances as of December 31, 20188,699,941 20,479,278 $89.61 
Granted(2,588,380)2,588,380 320.66 
Exercised— (2,208,052)32.88 
Expired— (280)6.74 
Balances as of December 31, 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 
Vested and exercisable at December 31, 2020
18,676,810 $170.23 
The aggregate intrinsic value of the Company's outstanding stock options as of December 31, 2020 was $6,922 million and represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of 2020 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last trading day of 2020. This amount changes based on the fair market value of the Company’s common stock. Total intrinsic value of options exercised for the years ended December 31, 2020, 2019 and 2018 was $1,596 million, $666 million and $863 million, respectively. The weighted-average remaining contractual term of the Company's outstanding stock options as of December 31, 2020 included in the table above was 5.55 years.
Cash received from option exercises for the years ended December 31, 2020, 2019 and 2018 was $235 million, $72 million and $125 million, respectively.
Stock-Based Compensation
Stock options granted are exercisable for the full ten year 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,
 202020192018
Dividend yield— %— %— %
Expected volatility
37% - 45%
37% - 41%
40% - 42%
Risk-free interest rate
0.67% - 1.71%
1.74% - 2.74%
2.61% - 3.09%
Suboptimal exercise factor
3.34 - 3.67
3.07 - 3.23
2.80 - 3.01
Valuation data:
Weighted-average fair value (per share)$217.42 $156.60 $157.19 
Total stock-based compensation expense (in thousands)415,180 405,376 320,657 
Total income tax impact on provision (in thousands)91,718 90,856 67,575 

The Company considers several factors in determining the suboptimal exercise factor, including the historical and estimated option exercise behavior.
The Company calculates expected volatility based solely on implied volatility. The Company believes that implied volatility of publicly traded options in its common stock is more reflective of market conditions, and given consistently high trade volumes of the options, can reasonably be expected to be a better indicator of expected volatility than historical volatility of its common stock.
In valuing shares issued under the Company’s employee stock option plans, the Company bases the risk-free interest rate on U.S. Treasury zero-coupon issues with terms similar to the contractual term of the options. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option valuation model. The Company does not use a post-vesting termination rate as options are fully vested upon grant date.
v3.20.4
Income Taxes
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income before provision for income taxes was as follows:
 Year Ended December 31,
 202020192018
 (in thousands)
United States$2,789,064 $1,719,326 $845,402 
Foreign410,285 342,905 381,056 
Income before income taxes$3,199,349 $2,062,231 $1,226,458 
The components of provision for income taxes for all periods presented were as follows:
 
 Year Ended December 31,
 202020192018
 (in thousands)
Current tax provision:
Federal$24,221 $21,498 $(22,176)
State65,821 45,228 (10,234)
Foreign277,846 223,328 133,146 
Total current367,888 290,054 100,736 
Deferred tax provision:
Federal(57,765)(28,003)(37,396)
State164,685 (54,507)(52,391)
Foreign(36,854)(12,229)4,267 
Total deferred70,066 (94,739)(85,520)
Provision for income taxes$437,954 $195,315 $15,216 

As of December 31, 2020, the Company had a California research and development ("R&D") credit carryforward of $250 million which can be carried forward indefinitely. On June 29, 2020, California enacted legislative changes that impose an annual cap of $5 million on the amount of business incentive tax credits we can utilize in California effective for tax years 2020 through 2022. As a result, we evaluated the Company's ability to realize the California R&D credit, the Company considered all available positive and negative evidence, including operating results, ongoing tax planning, and forecasts of future taxable income and determined it is more likely than not that the pre-2020 credits and a portion of the current year R&D credit would not be realized. In the twelve months ended December 31, 2020, the Company has recorded a valuation allowance of $250 million. The Company will monitor its business strategies, weighing positive and negative evidence in assessing its realization of this asset in the future and in the event there is a need to release the valuation allowance, a tax benefit will be recorded.
A reconciliation of the provision for income taxes, with the amount computed by applying the statutory Federal income tax rate to income before income taxes is as follows:

 Year Ended December 31,
 202020192018
 (in thousands)
Expected tax expense at U.S. Federal statutory rates$671,864 $433,059 $257,556 
State income taxes, net of Federal income tax effect65,808 47,909 33,611 
Foreign earnings at other than U.S. rates12,212 56,969 63,519 
Federal and California R&D tax credits(113,882)(134,523)(140,749)
Valuation allowance on California R&D tax credits
183,283 — — 
Excess tax benefits on stock-based compensation(339,436)(148,693)(191,323)
Impact of the Tax Cuts and Jobs Act of 2017
Rate Change / Transition Tax— — (71,516)
Tax effects of the Tax Cuts and Jobs Act(87,194)(127,534)43,099 
Global corporate structure simplification— 35,939 — 
Nondeductible Officers Compensation30,351 24,111 14,377 
Other14,948 8,078 6,642 
Provision for income taxes$437,954 $195,315 $15,216 
Effective Tax Rate14 %9 %1 %
The components of deferred tax assets and liabilities were as follows:
 
 As of December 31,
 20202019
 (in thousands)
Deferred tax assets:
Stock-based compensation$296,646 $258,376 
Federal and California tax R&D credits513,413 408,715 
Foreign tax credits— 137,818 
Accruals and reserves74,239 42,450 
Operating leases436,838 349,208 
Foreign Net Operating Losses29,894 411 
Unrealized Gain/Loss114,884 5,477 
Other2,543 622 
Gross deferred tax assets1,468,457 1,203,077 
Depreciation & amortization(229,142)(80,921)
Operating leases(400,380)(329,168)
Gross deferred tax liabilities(629,522)(410,089)
Valuation allowance(249,844)(134,782)
Net deferred tax assets$589,091 $658,206 
All deferred tax assets are classified as “Other non-current assets” on the Consolidated Balance Sheets as of December 31, 2020 and December 31, 2019. In evaluating its ability to realize the net deferred tax assets, the Company considered all available positive and negative evidence, including its past operating results and the forecast of future market growth, forecasted earnings, future taxable income, and prudent and feasible tax planning strategies. As of December 31, 2020, the valuation allowance of $250 million was related to the California R&D credits that the Company does not expect to realize.
As of December 31, 2020, the Company's Federal R&D tax credit and state tax credit carryforwards for tax return purposes were $317 million, and $365 million, respectively. The Federal R&D tax credit carryforwards expire through 2040. State tax credit carryforwards can be carried forward indefinitely.
In the fourth quarter of 2020, the Company determined that the likelihood of utilizing its non-U.S. foreign tax credits of $135 million for which there was a valuation allowance of $135 million was remote given its recent global corporate simplification. As such, the Company has written off the deferred tax asset against the valuation allowance and will no longer disclose these amounts.
The unrecognized tax benefits that are not expected to result in payment or receipt of cash within one year are classified as “Other non-current liabilities” and a reduction of deferred tax assets which is classified as "Other non-current assets" in the Consolidated Balance Sheets. As of December 31, 2020, the total amount of gross unrecognized tax benefits was $140 million, of which $86 million, if recognized, would favorably impact the Company’s effective tax rate. As of December 31, 2019, the total amount of gross unrecognized tax benefits was $67 million, of which $57 million, if recognized, would favorably impact the Company’s effective tax rate. The aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands):
 
Balances as of December 31, 2018$47,534 
Increases related to tax positions taken during prior periods 925 
Decreases related to tax positions taken during prior periods(417)
Increases related to tax positions taken during the current period18,826 
Decreases related to expiration of statute of limitations(100)
Balances as of December 31, 201966,768 
Increases related to tax positions taken during prior periods 11,943 
Decreases related to tax positions taken during prior periods (3,697)
Increases related to tax positions taken during the current period65,110 
Decreases related to expiration of statute of limitations— 
Balances as of December 31, 2020$140,124 
The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes and in “Other non-current liabilities” in the Consolidated Balance Sheets. Interest and penalties included in the Company's provision for income taxes were not material in all the periods presented.
The Company files U.S. Federal, state and foreign tax returns. The Company is currently under examination by the IRS for 2016 through 2018 and is subject to examination for 2019. The 2015 through 2019 state tax returns are subject to examination by various state tax authorities. The Company is also currently under examination in the UK for 2018 and 2019. The company has no other significant foreign jurisdiction audits underway. The years 2014 through 2019 generally remain subject to examination by foreign tax authorities.
Given the potential outcome of the current examinations as well as the impact of the current examinations on the potential expiration of the statute of limitations, it is reasonably possible that the balance of unrecognized tax benefits could significantly change within the next twelve months. However, an estimate of the range of reasonably possible adjustments cannot be made at this time.
v3.20.4
Employee Benefit Plan
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Employee Benefit Plan Employee Benefit Plan
The Company maintains a 401(k) savings plan covering substantially all of its employees. Eligible employees may contribute up to 80% of their annual salary through payroll deductions, but not more than the statutory limits set by the Internal Revenue Service. The Company matches employee contributions at the discretion of the Board. During 2020, 2019 and 2018, the Company’s matching contributions totaled $69 million, $47 million and $27 million, respectively.
Multiemployer Benefit Plans
The Company contributes to various multiemployer defined pension plans under the terms of collective bargaining agreements that cover our union-represented employees. The risks of participating in multiemployer pension plans are different from single-employer plans such that (i) contributions made by the Company to the multiemployer pension plans may be used to provide benefits to employees of other participating employers; (ii) if the Company chooses to stop participating in the multiemployer pension plans, it may be required to pay those plans an amount based on the underfunded status of the plan; and (iii) if the Company stops contributing to the multiemployer pension plan, the unfunded obligations of the plan may become the obligation of the remaining participating employers. The Company also contributes to various other multiemployer benefit plans that provide health and welfare benefits to both active and retired participants. The Company does not participate in any multiemployer benefit plans that are individually significant to the Company.
The following table summarizes the Company's contributions to multiemployer pension and health plans for the years ended December 31, 2020, 2019 and 2018, respectively:
 Year Ended December 31,
 202020192018
 (in thousands)
Pension benefits$78,060 $89,703 $32,389 
Health benefits52,322 44,351 26,898 
Total contributions$130,382 $134,054 $59,287 
v3.20.4
Segment and Geographic Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment and Geographic Information Segment and Geographic Information
The Company operates as one operating segment. The Company's chief operating decision maker ("CODM") is its co-chief executive officers, who review financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources.
On July 13, 2020, Ted Sarandos was appointed as co-Chief Executive Officer of the Company and serves as Chief Content Officer with Reed Hastings, the Company’s President, co-Chief Executive Officer, and Chairman of the Board. The Company determined that both Mr. Sarandos and Mr. Hastings are its CODM and that there have been no changes to the Company's one operating segment as the Company's financial results continue to be evaluated on a consolidated basis by its CODM.
    Total U.S. revenues were $10.8 billion, $9.5 billion and $8.0 billion for the years ended December 31, 2020, 2019 and 2018, respectively. See Note 2 Revenue Recognition for additional information about streaming revenue by region.
    The Company's long-lived tangible assets, as well as the Company's operating lease right-of-use assets recognized on the Consolidated Balance Sheets were located as follows:
As of December 31,
20202019
(in thousands)
United States$2,224,891 $1,503,459 
International773,018 594,047 
v3.20.4
Selected Quarterly Financial Data (Unaudited)
 12 Months Ended
Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Data (Unaudited) Selected Quarterly Financial Data (Unaudited) 
December 31,September 30,June 30,March 31,
 (in thousands, except for per share data)
2020
Total revenues$6,644,442 $6,435,637 $6,148,286 $5,767,691 
Gross profit2,479,282 2,567,886 2,504,579 2,167,990 
Net income 542,156 789,976 720,196 709,067 
Earnings per share:
Basic$1.23 $1.79 $1.63 $1.61 
Diluted1.19 1.74 1.59 1.57 
2019
Total revenues$5,467,434 $5,244,905 $4,923,116 $4,520,992 
Gross profit2,001,411 2,146,986 1,917,459 1,650,378 
Net income 586,970 665,244 270,650 344,052 
Earnings per share:
Basic$1.34 $1.52 $0.62 $0.79 
Diluted1.30 1.47 0.60 0.76 
v3.20.4
Organization and Summary of Significant Accounting Policies (Policy)
 12 Months Ended
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of PresentationThe consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated.
Use of Estimates
Use of Estimates
The preparation of consolidated financial statements in conformity with generally accepted accounting principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions include the content asset amortization policy and the recognition and measurement of income tax assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results may differ from these estimates.
Recently adopted accounting pronouncements
Recently adopted accounting pronouncements
In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326), in order to improve financial reporting of expected credit losses on financial instruments and other commitments to extend credit. ASU 2016-13 requires that an entity measure and recognize expected credit losses for financial assets held at amortized cost and replaces the incurred loss impairment methodology in prior GAAP with a methodology that requires consideration of a broader range of information to estimate credit losses. The Company adopted ASU 2016-13 in the first quarter of 2020 and the impact of the adoption was not material to the Company's consolidated financial statements as credit losses are not expected to be significant based on historical collection trends, the financial condition of payment partners, and external market factors.
Recently issued accounting pronouncements not yet adopted
In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). ASU 2019-12 removes certain exceptions for performing intraperiod tax allocations, recognizing deferred taxes for investments, and calculating income taxes in interim periods. The guidance also simplifies the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill, and the effect of enacted changes in tax laws or rates in interim periods. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. While the Company is continuing to assess the potential impacts of ASU 2019-12, it does not expect ASU 2019-12 to have a material effect, if any, on its financial statements.
Cash Equivalents Cash EquivalentsThe Company considers investments in instruments purchased with an original maturity of 90 days or less to be cash equivalents. The Company also classifies amounts in transit from payment processors for customer credit card and debit card transactions as cash equivalents.
Content
Content
The Company acquires, licenses and produces content, including original programming, in order to offer members unlimited viewing of video entertainment. The content licenses are for a fixed fee and specific windows of availability.
Payment terms for certain content licenses and the production of content require more upfront cash payments relative to the amortization expense. Payments for content, including additions to content assets and the changes in related liabilities, are classified within "Net cash provided by (used in) operating activities" on the Consolidated Statements of Cash Flows.
The Company recognizes content assets (licensed and produced) as “Content assets, net” on the Consolidated Balance Sheets. For licensed content, the Company capitalizes the fee per title and records a corresponding liability at the gross amount of the liability when the license period begins, the cost of the title is known and the title is accepted and available for streaming. For produced content, the Company capitalizes costs associated with the production, including development costs, direct costs and production overhead. Participations and residuals are expensed in line with the amortization of production costs.
Based on factors including historical and estimated viewing patterns, the Company amortizes the content assets (licensed and produced) in “Cost of revenues” on the Consolidated Statements of Operations over the shorter of each title's contractual window of availability or estimated period of use or ten years, beginning with the month of first availability. The amortization is on an accelerated basis, as the Company typically expects more upfront viewing, for instance due to additional merchandising and marketing efforts and film amortization is more accelerated than TV series amortization. On average, over 90% of a licensed or produced content asset is expected to be amortized within four years after its month of first availability. The Company reviews factors impacting the amortization of the content assets on an ongoing basis. The Company's estimates related to these factors require considerable management judgment.
The Company's business model is subscription based as opposed to a model generating revenues at a specific title level. Content assets (licensed and produced) are predominantly monetized as a group and therefore are reviewed in aggregate at a group level when an event or change in circumstances indicates a change in the expected usefulness of the content or that the fair value may be less than unamortized cost. To date, the Company has not identified any such event or changes in circumstances. If such changes are identified in the future, these aggregated content assets will be stated at the lower of unamortized cost or fair value. In addition, unamortized costs for assets that have been, or are expected to be, abandoned are written off.
Property and Equipment Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the shorter of the estimated useful lives of the respective assets, generally up to 30 years, or the expected lease term for leasehold improvements, if applicable.
Trade Receivables Trade ReceivablesTrade receivables consist primarily of amounts related to members and payment partners that collect membership fees on the Company's behalf. The Company evaluates the need for an allowance for doubtful accounts based on historical collection trends, the financial condition of its payment partners, and external market factors.
Marketing MarketingMarketing expenses consist primarily of advertising expenses and certain payments made to the Company’s partners, including consumer electronics ("CE") manufacturers, multichannel video programming distributors ("MVPDs"), mobile operators and internet service providers ("ISPs"). Advertising expenses include promotional activities such as digital and television advertising. Advertising costs are expensed as incurred.
Research and Development Research and DevelopmentResearch and development expenses consist of payroll and related costs incurred in making improvements to our service offerings.
Income Taxes
Income Taxes
The Company records a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Deferred income taxes are recognized by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as net operating loss and tax credit carryforwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance for any tax benefits for which future realization is uncertain.
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 fully vested non-qualified stock options to its employees on a monthly basis. As a result of immediate vesting, stock-based compensation expense is fully recognized on the grant date, and no estimate is required for post-vesting option forfeitures.
v3.20.4
Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
Streaming Revenue, Paid net Membership Additions, and Ending Paid Memberships by Region The following tables summarize streaming revenues, paid net membership additions, and ending paid memberships by region for the years December 31, 2020, 2019 and 2018, respectively:
United States and Canada (UCAN)
As of/ Year Ended December 31,
 202020192018
 (in thousands)
Revenues$11,455,396 $10,051,208 $8,281,532 
Paid net membership additions6,274 2,905 6,335 
Paid memberships at end of period73,936 67,662 64,757 

Europe, Middle East, and Africa (EMEA)
As of/ Year Ended December 31,
 202020192018
 (in thousands)
Revenues$7,772,252 $5,543,067 $3,963,707 
Paid net membership additions14,920 13,960 11,814 
Paid memberships at end of period66,698 51,778 37,818 

Latin America (LATAM)
As of/ Year Ended December 31,
 202020192018
 (in thousands)
Revenues$3,156,727 $2,795,434 $2,237,697 
Paid net membership additions6,120 5,340 6,360 
Paid memberships at end of period37,537 31,417 26,077 


Asia-Pacific (APAC)
As of/ Year Ended December 31,
 202020192018
 (in thousands)
Revenues$2,372,300 $1,469,521 $945,816 
Paid net membership additions9,259 5,626 4,106 
Paid memberships at end of period25,492 16,233 10,607 
v3.20.4
Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Computation of Earnings Per Share The computation of earnings per share is as follows:
 
 Year ended December 31,
 202020192018
 (in thousands, except per share data)
Basic earnings per share:
Net income$2,761,395 $1,866,916 $1,211,242 
Shares used in computation:
Weighted-average common shares outstanding440,922 437,799 435,374 
Basic earnings per share$6.26 $4.26 $2.78 
Diluted earnings per share:
Net income$2,761,395 $1,866,916 $1,211,242 
Shares used in computation:
Weighted-average common shares outstanding440,922 437,799 435,374 
Employee stock options 13,286 13,966 15,870 
Weighted-average number of shares454,208 451,765 451,244 
Diluted earnings per share
$6.08 $4.13 $2.68 
Summary of Potential Common Shares Excluded from Diluted Calculation The following table summarizes the potential common shares excluded from the diluted calculation:
 
 Year ended December 31,
 202020192018
 (in thousands)
Employee stock options484 1,588 330 
v3.20.4
Cash, Cash Equivalents and Restricted Cash (Tables)
 12 Months Ended
Dec. 31, 2020
Short-Term Investments And Fair Value Measurement [Abstract]  
Schedule of Cash and Cash Equivalents
The following tables summarize the Company's cash, cash equivalents and restricted cash as of December 31, 2020 and 2019:
 As of December 31, 2020
 Cash and cash equivalentsOther Current AssetsNon-current AssetsTotal
 (in thousands)
Cash$3,331,860 $1,783 $31,284 $3,364,927 
Level 1 securities:
Money market funds4,573,690 — 253 4,573,943 
Level 2 securities:
Foreign Time Deposits300,000 — 300,000 
$8,205,550 $1,783 $31,537 $8,238,870 


 As of December 31, 2019
 Cash and cash equivalentsOther Current AssetsNon-current AssetsTotal
 (in thousands)
Cash$3,103,525 $1,863 $22,161 $3,127,549 
Level 1 securities:
Money market funds1,614,912 — 1,325 1,616,237 
Level 2 securities:
Foreign Time Deposits300,000 — — 300,000 
$5,018,437 $1,863 $23,486 $5,043,786 
v3.20.4
Balance Sheet Components (Tables)
 12 Months Ended
Dec. 31, 2020
Balance Sheet Components Disclosure [Abstract]  
Content Assets
Content assets consisted of the following:
As of December 31,
20202019
(in thousands)
Licensed content, net
$13,747,607 $14,703,352 
Produced content, net
Released, less amortization
5,809,681 4,382,685 
In production
4,827,455 4,750,664 
In development and pre-production
999,207 667,866 
11,636,343 9,801,215 

Content assets, net$25,383,950 $24,504,567 
Schedule of Amortization of Streaming Content Assets
The following table represents the amortization of content assets:
Year ended December 31,
 202020192018
(in thousands)
Licensed content$7,544,631 $7,242,799 $6,511,689 
Produced content3,262,281 1,973,448 1,020,399 
Total$10,806,912 $9,216,247 $7,532,088 
Property and Equipment, Net
Property and equipment and accumulated depreciation consisted of the following:
As of December 31,Estimated Useful Lives (in Years)
20202019
(in thousands)
Land$50,700 $6,125 
Buildings42,717 33,141 30 years
Leasehold improvements524,537 354,999 Over life of lease
Furniture and fixtures110,185 87,465 
3-15 years
Information technology283,014 243,565 3 years
Corporate aircraft110,629 108,995 8 years
Machinery and equipment34,633 46,415 
3-5 years
Capital work-in-progress298,558 100,521 
Property and equipment, gross1,454,973 981,226 
Less: Accumulated depreciation(494,790)(416,005)
Property and equipment, net$960,183 $565,221 
Information on Right-of-Use Assets and Lease Liabilities
Information related to the Company's operating right-of-use assets and related operating lease liabilities were as follows:
Year ended December 31,
20202019
(in thousands)
Cash paid for operating lease liabilities$259,559 $192,084 
Right-of-use assets obtained in exchange for new operating lease obligations (1)729,942 1,672,462 

(1) Balance as of December 31, 2019 includes $743 million for operating leases existing on January 1, 2019.
As of December 31,
20202019
(in thousands, except lease term and discount rate)
Operating lease right-of-use assets, net$2,037,726 $1,532,285 
Current operating lease liabilities$256,222 $190,622 
Non-current operating lease liabilities1,945,631 1,422,612 
Total operating lease liabilities$2,201,853 $1,613,234 
Weighted-average remaining lease term8.9 years8.8 years
Weighted-average discount rate3.6 %5.0 %
Maturities of Lease Liabilities
Maturities of operating lease liabilities as of December 31, 2020 were as follows (in thousands):
Due in 12 month period ended December 31,
2021$320,245 
2022312,154 
2023300,014 
2024279,037 
2025258,348 
Thereafter1,100,115 
2,569,913 
Less imputed interest(368,060)
Total operating lease liabilities2,201,853 
Current operating lease liabilities 256,222 
Non-current operating lease liabilities1,945,631 
Total operating lease liabilities$2,201,853 
Other Current Assets
Other current assets consisted of the following:
As of
December 31,
2020		December 31,
2019
(in thousands)
Trade receivables
$610,819 $454,399 
Prepaid expenses
203,042 180,999 
Other
742,169 524,669 
Total other current assets
$1,556,030 $1,160,067 
v3.20.4
Debt (Tables)
 12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
The following table provides a summary of the Company's outstanding debt and the fair values based on quoted market prices in less active markets as of December 31, 2020 and December 31, 2019:

Principal Amount at ParLevel 2 Fair Value as of
December 31,
2020		December 31,
2019		Issuance DateMaturityDecember 31,
2020		December 31,
2019
(in millions)(in millions)
5.375% Senior Notes
$500 $500 February 2013February 2021$502 $518 
5.500% Senior Notes
700 700 February 2015February 2022735 744 
5.750% Senior Notes
400 400 February 2014March 2024449 444 
5.875% Senior Notes
800 800 February 2015February 2025921 896 
3.000% Senior Notes (1)
574 — April 2020June 2025616 — 
3.625% Senior Notes
500 — April 2020June 2025535 — 
4.375% Senior Notes
1,000 1,000 October 2016November 20261,110 1,026 
3.625% Senior Notes (1)
1,588 1,459 May 2017May 20271,776 1,565 
4.875% Senior Notes
1,600 1,600 October 2017April 20281,807 1,670 
5.875% Senior Notes
1,900 1,900 April 2018November 20282,280 2,111 
4.625% Senior Notes (1)
1,344 1,234 October 2018May 20291,630 1,378 
6.375% Senior Notes
800 800 October 2018May 2029995 916 
3.875% Senior Notes (1)
1,466 1,346 April 2019November 20291,700 1,429 
5.375% Senior Notes
900 900 April 2019November 20291,061 960 
3.625% Senior Notes (1)
1,344 1,234 October 2019June 20301,533 1,273 
4.875% Senior Notes
1,000 1,000 October 2019June 20301,155 1,019 
$16,416 $14,873 $18,805 $15,949 
(1) The following Senior Notes have a principal amount denominated in euro: 3.000% Senior Notes for €470 million, 3.625% Senior Notes for €1,300 million, 4.625% Senior Notes for €1,100 million, 3.875% Senior Notes for €1,200 million, and 3.625% Senior Notes for €1,100 million.
Schedule of Expected Timing of Principal and Interest Payments for the Notes
The expected timing of principal and interest payments for these Notes are as follows:
As of 
December 31,
2020		December 31, 2019
(in thousands)
Less than one year
$1,264,020 $736,969 
Due after one year and through three years
2,136,997 2,581,471 
Due after three years and through five years
3,614,906 1,705,201 
Due after five years
14,841,164 15,699,800 
Total debt obligations
$21,857,087 $20,723,441 
v3.20.4
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Expected Timing of Payments for Streaming Content Obligations The expected timing of payments for these content obligations is as follows:
As of December 31,
20202019
 (in thousands)
Less than one year$8,980,868 $8,477,367 
Due after one year and through 3 years7,819,563 8,352,731 
Due after 3 years and through 5 years1,973,091 2,041,340 
Due after 5 years445,308 618,644 
Total content obligations$19,218,830 $19,490,082 
v3.20.4
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2020
Stockholders' Equity Note [Abstract]  
Summary of Activity Related to Stock Option Plans
A summary of the activities related to the Company’s stock option plans is as follows:
 
 Shares Available
for Grant		Options Outstanding
 Number of
Shares		Weighted- Average Exercise Price
(per Share)
Balances as of December 31, 201710,739,915 21,647,350 $61.13 
Granted(2,039,974)2,039,974 311.66 
Exercised— (3,205,911)38.66 
Expired— (2,135)4.60 
Balances as of December 31, 20188,699,941 20,479,278 $89.61 
Granted(2,588,380)2,588,380 320.66 
Exercised— (2,208,052)32.88 
Expired— (280)6.74 
Balances as of December 31, 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 
Vested and exercisable at December 31, 2020
18,676,810 $170.23 
Summary of Assumptions Used to Value Stock Option Grants Using Lattice-Binomial Model The following table summarizes the assumptions used to value option grants using the lattice-binomial model and the valuation data:
 
 Year Ended December 31,
 202020192018
Dividend yield— %— %— %
Expected volatility
37% - 45%
37% - 41%
40% - 42%
Risk-free interest rate
0.67% - 1.71%
1.74% - 2.74%
2.61% - 3.09%
Suboptimal exercise factor
3.34 - 3.67
3.07 - 3.23
2.80 - 3.01
Valuation data:
Weighted-average fair value (per share)$217.42 $156.60 $157.19 
Total stock-based compensation expense (in thousands)415,180 405,376 320,657 
Total income tax impact on provision (in thousands)91,718 90,856 67,575 
v3.20.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Taxes
Income before provision for income taxes was as follows:
 Year Ended December 31,
 202020192018
 (in thousands)
United States$2,789,064 $1,719,326 $845,402 
Foreign410,285 342,905 381,056 
Income before income taxes$3,199,349 $2,062,231 $1,226,458 
Components of Provision for Income Taxes
The components of provision for income taxes for all periods presented were as follows:
 
 Year Ended December 31,
 202020192018
 (in thousands)
Current tax provision:
Federal$24,221 $21,498 $(22,176)
State65,821 45,228 (10,234)
Foreign277,846 223,328 133,146 
Total current367,888 290,054 100,736 
Deferred tax provision:
Federal(57,765)(28,003)(37,396)
State164,685 (54,507)(52,391)
Foreign(36,854)(12,229)4,267 
Total deferred70,066 (94,739)(85,520)
Provision for income taxes$437,954 $195,315 $15,216 
Reconciliation of Provision for Income Taxes
A reconciliation of the provision for income taxes, with the amount computed by applying the statutory Federal income tax rate to income before income taxes is as follows:

 Year Ended December 31,
 202020192018
 (in thousands)
Expected tax expense at U.S. Federal statutory rates$671,864 $433,059 $257,556 
State income taxes, net of Federal income tax effect65,808 47,909 33,611 
Foreign earnings at other than U.S. rates12,212 56,969 63,519 
Federal and California R&D tax credits(113,882)(134,523)(140,749)
Valuation allowance on California R&D tax credits
183,283 — — 
Excess tax benefits on stock-based compensation(339,436)(148,693)(191,323)
Impact of the Tax Cuts and Jobs Act of 2017
Rate Change / Transition Tax— — (71,516)
Tax effects of the Tax Cuts and Jobs Act(87,194)(127,534)43,099 
Global corporate structure simplification— 35,939 — 
Nondeductible Officers Compensation30,351 24,111 14,377 
Other14,948 8,078 6,642 
Provision for income taxes$437,954 $195,315 $15,216 
Effective Tax Rate14 %9 %1 %
Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities were as follows:
 
 As of December 31,
 20202019
 (in thousands)
Deferred tax assets:
Stock-based compensation$296,646 $258,376 
Federal and California tax R&D credits513,413 408,715 
Foreign tax credits— 137,818 
Accruals and reserves74,239 42,450 
Operating leases436,838 349,208 
Foreign Net Operating Losses29,894 411 
Unrealized Gain/Loss114,884 5,477 
Other2,543 622 
Gross deferred tax assets1,468,457 1,203,077 
Depreciation & amortization(229,142)(80,921)
Operating leases(400,380)(329,168)
Gross deferred tax liabilities(629,522)(410,089)
Valuation allowance(249,844)(134,782)
Net deferred tax assets$589,091 $658,206 
Summary of Changes in Unrecognized Tax Benefits The aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands):
 
Balances as of December 31, 2018$47,534 
Increases related to tax positions taken during prior periods 925 
Decreases related to tax positions taken during prior periods(417)
Increases related to tax positions taken during the current period18,826 
Decreases related to expiration of statute of limitations(100)
Balances as of December 31, 201966,768 
Increases related to tax positions taken during prior periods 11,943 
Decreases related to tax positions taken during prior periods (3,697)
Increases related to tax positions taken during the current period65,110 
Decreases related to expiration of statute of limitations— 
Balances as of December 31, 2020$140,124 
v3.20.4
Employee Benefit Plan (Tables)
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Schedule of Company Contributions to Pension and Health Plans
The following table summarizes the Company's contributions to multiemployer pension and health plans for the years ended December 31, 2020, 2019 and 2018, respectively:
 Year Ended December 31,
 202020192018
 (in thousands)
Pension benefits$78,060 $89,703 $32,389 
Health benefits52,322 44,351 26,898 
Total contributions$130,382 $134,054 $59,287 
v3.20.4
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Long-lived Assets by Geographic Areas The Company's long-lived tangible assets, as well as the Company's operating lease right-of-use assets recognized on the Consolidated Balance Sheets were located as follows:
As of December 31,
20202019
(in thousands)
United States$2,224,891 $1,503,459 
International773,018 594,047 
v3.20.4
Selected Quarterly Financial Data (Tables)
 12 Months Ended
Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Data
December 31,September 30,June 30,March 31,
 (in thousands, except for per share data)
2020
Total revenues$6,644,442 $6,435,637 $6,148,286 $5,767,691 
Gross profit2,479,282 2,567,886 2,504,579 2,167,990 
Net income 542,156 789,976 720,196 709,067 
Earnings per share:
Basic$1.23 $1.79 $1.63 $1.61 
Diluted1.19 1.74 1.59 1.57 
2019
Total revenues$5,467,434 $5,244,905 $4,923,116 $4,520,992 
Gross profit2,001,411 2,146,986 1,917,459 1,650,378 
Net income 586,970 665,244 270,650 344,052 
Earnings per share:
Basic$1.34 $1.52 $0.62 $0.79 
Diluted1.30 1.47 0.60 0.76 
v3.20.4
Organization and Summary of Significant Accounting Policies (Narrative) (Details)
$ in Thousands, member in Millions
 12 Months Ended
Dec. 31, 2020
USD ($)
member
country
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Organization And Summary Of Significant Accounting Policies [Line Items]      
Number of streaming members (over) | member 204    
Number of countries (over) | country 190    
Content assets amortization period cap 10 years    
Average produced content asset amortization percentage (over) 90.00%    
Average produced content asset amortization period 4 years    
Advertising expense $ 1,447,000 $ 1,879,000 $ 1,808,000
Research and development expense 1,984,000 1,673,000 1,218,000
Foreign currency remeasurement gain (loss) (533,278) 45,576 73,953
Interest and Other Income (Expense)      
Organization And Summary Of Significant Accounting Policies [Line Items]      
Foreign currency remeasurement gain (loss) $ (660,000) $ 7,000 $ (1,000)
Maximum      
Organization And Summary Of Significant Accounting Policies [Line Items]      
Property and equipment estimated useful life 30 years    
v3.20.4
Revenue Recognition - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Disaggregation of Revenue [Line Items]                      
Revenues $ 6,644,442 $ 6,435,637 $ 6,148,286 $ 5,767,691 $ 5,467,434 $ 5,244,905 $ 4,923,116 $ 4,520,992 $ 24,996,056 $ 20,156,447 $ 15,794,341
Deferred revenue $ 1,117,992       $ 924,745       1,117,992 924,745  
Increase in deferred revenue                 193,247 163,846 142,277
DVD                      
Disaggregation of Revenue [Line Items]                      
Revenues                 200,000 300,000 400,000
United States                      
Disaggregation of Revenue [Line Items]                      
Revenues                 $ 10,800,000 $ 9,500,000 $ 8,000,000
v3.20.4
Revenue Recognition - Revenue and Membership Information (Details)
membership in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
USD ($)
membership
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
membership
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2020
USD ($)
membership
Dec. 31, 2019
USD ($)
membership
Dec. 31, 2018
USD ($)
membership
Disaggregation of Revenue [Line Items]                      
Revenues | $ $ 6,644,442 $ 6,435,637 $ 6,148,286 $ 5,767,691 $ 5,467,434 $ 5,244,905 $ 4,923,116 $ 4,520,992 $ 24,996,056 $ 20,156,447 $ 15,794,341
Streaming | United States and Canada                      
Disaggregation of Revenue [Line Items]                      
Revenues | $                 $ 11,455,396 $ 10,051,208 $ 8,281,532
Paid net membership additions (in memberships)                 6,274 2,905 6,335
Paid memberships at end of period (in memberships) 73,936       67,662       73,936 67,662 64,757
Streaming | Europe, Middle East, and Africa                      
Disaggregation of Revenue [Line Items]                      
Revenues | $                 $ 7,772,252 $ 5,543,067 $ 3,963,707
Paid net membership additions (in memberships)                 14,920 13,960 11,814
Paid memberships at end of period (in memberships) 66,698       51,778       66,698 51,778 37,818
Streaming | Latin America                      
Disaggregation of Revenue [Line Items]                      
Revenues | $                 $ 3,156,727 $ 2,795,434 $ 2,237,697
Paid net membership additions (in memberships)                 6,120 5,340 6,360
Paid memberships at end of period (in memberships) 37,537       31,417       37,537 31,417 26,077
Streaming | Asia-Pacific                      
Disaggregation of Revenue [Line Items]                      
Revenues | $                 $ 2,372,300 $ 1,469,521 $ 945,816
Paid net membership additions (in memberships)                 9,259 5,626 4,106
Paid memberships at end of period (in memberships) 25,492       16,233       25,492 16,233 10,607
v3.20.4
Earnings Per Share - Calculation of EPS (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Basic earnings per share:                      
Net income $ 542,156 $ 789,976 $ 720,196 $ 709,067 $ 586,970 $ 665,244 $ 270,650 $ 344,052 $ 2,761,395 $ 1,866,916 $ 1,211,242
Weighted-average common shares outstanding (in shares)                 440,922 437,799 435,374
Basic earnings per share (in USD per share) $ 1.23 $ 1.79 $ 1.63 $ 1.61 $ 1.34 $ 1.52 $ 0.62 $ 0.79 $ 6.26 $ 4.26 $ 2.78
Diluted earnings per share:                      
Net income $ 542,156 $ 789,976 $ 720,196 $ 709,067 $ 586,970 $ 665,244 $ 270,650 $ 344,052 $ 2,761,395 $ 1,866,916 $ 1,211,242
Shares used in computation:                      
Weighted-average common shares outstanding (in shares)                 440,922 437,799 435,374
Employee stock options (in shares)                 13,286 13,966 15,870
Weighted-average number of shares (in shares)                 454,208 451,765 451,244
Diluted earnings per share (in USD per share) $ 1.19 $ 1.74 $ 1.59 $ 1.57 $ 1.30 $ 1.47 $ 0.60 $ 0.76 $ 6.08 $ 4.13 $ 2.68
v3.20.4
Earnings Per Share - Antidilutive Shares (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Earnings Per Share [Abstract]      
Employee stock options 484 1,588 330
v3.20.4
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash $ 8,238,870 $ 5,043,786 $ 3,812,041 $ 2,822,795
Cash        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 3,364,927 3,127,549    
Level 1 securities | Money market funds        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 4,573,943 1,616,237    
Level 2 securities | Foreign Time Deposits        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 300,000 300,000    
Cash and cash equivalents        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 8,205,550 5,018,437    
Cash and cash equivalents | Cash        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 3,331,860 3,103,525    
Cash and cash equivalents | Level 1 securities | Money market funds        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 4,573,690 1,614,912    
Cash and cash equivalents | Level 2 securities | Foreign Time Deposits        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 300,000 300,000    
Other Current Assets        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 1,783 1,863    
Other Current Assets | Cash        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 1,783 1,863    
Other Current Assets | Level 1 securities | Money market funds        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 0 0    
Other Current Assets | Level 2 securities | Foreign Time Deposits        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 0    
Non-current Assets        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 31,537 23,486    
Non-current Assets | Cash        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 31,284 22,161    
Non-current Assets | Level 1 securities | Money market funds        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash 253 1,325    
Non-current Assets | Level 2 securities | Foreign Time Deposits        
Cash and Cash Equivalents [Line Items]        
Cash, cash equivalents and restricted cash $ 0 $ 0    
v3.20.4
Balance Sheet Components - Components of Content Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]      
Content assets, net $ 25,383,950 $ 24,504,567  
Amortization of content assets 10,806,912 9,216,247 $ 7,532,088
Licensed content, net      
Finite-Lived Intangible Assets [Line Items]      
Net content 13,747,607 14,703,352  
Unamortized cost in year one 5,637,000    
Unamortized cost in year two 3,494,000    
Unamortized cost in year three 2,134,000    
Amortization of content assets 7,544,631 7,242,799 6,511,689
Produced content, net      
Finite-Lived Intangible Assets [Line Items]      
Net content 5,809,681 4,382,685  
In production 4,827,455 4,750,664  
In development and pre-production 999,207 667,866  
Content assets, net 11,636,343 9,801,215  
Unamortized cost in year one 2,183,000    
Unamortized cost in year two 1,629,000    
Unamortized cost in year three 1,092,000    
Amortization of content assets $ 3,262,281 $ 1,973,448 $ 1,020,399
v3.20.4
Balance Sheet Components - Property and Equipment and Accumulated Depreciation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 1,454,973 $ 981,226
Less: Accumulated depreciation (494,790) (416,005)
Property and equipment, net $ 960,183 $ 565,221
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] us-gaap:AccruedLiabilitiesCurrent us-gaap:AccruedLiabilitiesCurrent
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] us-gaap:OtherLiabilitiesNoncurrent us-gaap:OtherLiabilitiesNoncurrent
Maximum    
Property, Plant and Equipment [Line Items]    
Estimated Useful Lives 30 years  
Land    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 50,700 $ 6,125
Buildings    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 42,717 33,141
Estimated Useful Lives 30 years  
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 524,537 354,999
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 110,185 87,465
Furniture and fixtures | Minimum    
Property, Plant and Equipment [Line Items]    
Estimated Useful Lives 3 years  
Furniture and fixtures | Maximum    
Property, Plant and Equipment [Line Items]    
Estimated Useful Lives 15 years  
Information technology    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 283,014 243,565
Estimated Useful Lives 3 years  
Corporate aircraft    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 110,629 108,995
Estimated Useful Lives 8 years  
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 34,633 46,415
Machinery and equipment | Minimum    
Property, Plant and Equipment [Line Items]    
Estimated Useful Lives 3 years  
Machinery and equipment | Maximum    
Property, Plant and Equipment [Line Items]    
Estimated Useful Lives 5 years  
Capital work-in-progress    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 298,558 $ 100,521
v3.20.4
Balance Sheet Components - Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Jan. 01, 2019
Lease Cost:        
Lease costs $ 441,000 $ 448,000    
Operating lease cost 324,000 218,000    
Short-term lease cost 117,000 230,000    
Rent expense     $ 107,000  
Cash paid for operating lease liabilities 259,559 192,084    
Right-of-use assets obtained in exchange for new operating lease obligations 729,942 1,672,462    
Operating lease right-of-use assets, net 2,037,726 1,532,285    
Current operating lease liabilities 256,222 190,622    
Non-current operating lease liabilities 1,945,631 1,422,612    
Total operating lease liabilities $ 2,201,853 $ 1,613,234    
Weighted-average remaining lease term 8 years 10 months 24 days 8 years 9 months 18 days    
Weighted-average discount rate 3.60% 5.00%    
Operating lease, liability, leases not commenced $ 256,000      
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] us-gaap:AccruedLiabilitiesCurrent us-gaap:AccruedLiabilitiesCurrent    
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] us-gaap:OtherLiabilitiesNoncurrent us-gaap:OtherLiabilitiesNoncurrent    
ASU 2016-02        
Lease Cost:        
Operating lease right-of-use assets, net       $ 743,000
Minimum        
Lessee, Lease, Description [Line Items]        
Lease term of contract 1 year      
Lease renewal term 1 year      
Lease Cost:        
Lease not yet commenced, term of contract 1 year      
Maximum        
Lessee, Lease, Description [Line Items]        
Lease term of contract 15 years      
Lease renewal term 20 years      
Lease Cost:        
Lease not yet commenced, term of contract 15 years      
v3.20.4
Balance Sheet Components - Lease Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]    
2021 $ 320,245  
2022 312,154  
2023 300,014  
2024 279,037  
2025 258,348  
Thereafter 1,100,115  
Total lease liabilities 2,569,913  
Less imputed interest (368,060)  
Total operating lease liabilities 2,201,853 $ 1,613,234
Current operating lease liabilities 256,222 190,622
Non-current operating lease liabilities $ 1,945,631 $ 1,422,612
v3.20.4
Balance Sheet Components - Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Balance Sheet Components Disclosure [Abstract]    
Trade receivables $ 610,819 $ 454,399
Prepaid expenses 203,042 180,999
Other 742,169 524,669
Total other current assets $ 1,556,030 $ 1,160,067
v3.20.4
Debt - Narrative (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2020
EUR (€)
Debt Instrument [Line Items]        
Aggregate outstanding notes $ 16,309,000      
Debt issuance costs 107,000 $ 114,000    
Short-term debt 499,878 0    
Long-term debt 15,809,095 14,759,260    
Long-term notes denominated in foreign currency 16,416,000 14,873,000    
Foreign currency remeasurement loss (gain) on debt 533,278 $ (45,576) $ (73,953)  
Senior Notes        
Debt Instrument [Line Items]        
Long-term notes denominated in foreign currency | €       € 5,170,000,000
Foreign currency remeasurement loss (gain) on debt $ 533,000      
Redemption price, percent of outstanding principal 101.00%      
v3.20.4
Debt - Summary of Long-term Debt (Details)
$ in Millions
Dec. 31, 2020
EUR (€)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
EUR (€)
Dec. 31, 2019
USD ($)
Debt Instrument [Line Items]        
Face amount   $ 16,416   $ 14,873
Long-term debt, fair value   18,805   15,949
Senior Notes        
Debt Instrument [Line Items]        
Face amount | € € 5,170,000,000      
Senior Notes | 5.375% Senior Notes        
Debt Instrument [Line Items]        
Face amount   500   500
Long-term debt, fair value   $ 502   $ 518
Interest rate 5.375% 5.375% 5.375% 5.375%
Senior Notes | 5.500% Senior Notes        
Debt Instrument [Line Items]        
Face amount   $ 700   $ 700
Long-term debt, fair value   $ 735   $ 744
Interest rate 5.50% 5.50% 5.50% 5.50%
Senior Notes | 5.750% Senior Notes        
Debt Instrument [Line Items]        
Face amount   $ 400   $ 400
Long-term debt, fair value   $ 449   $ 444
Interest rate 5.75% 5.75% 5.75% 5.75%
Senior Notes | 5.875% Senior Notes        
Debt Instrument [Line Items]        
Face amount   $ 800   $ 800
Long-term debt, fair value   $ 921   $ 896
Interest rate 5.875% 5.875% 5.875% 5.875%
Senior Notes | 3.000% Senior Notes        
Debt Instrument [Line Items]        
Face amount € 470,000,000 $ 574 € 470,000,000 $ 0
Long-term debt, fair value   $ 616   $ 0
Interest rate 3.00% 3.00% 3.00% 3.00%
Senior Notes | 3.625% Senior Notes        
Debt Instrument [Line Items]        
Face amount   $ 500   $ 0
Long-term debt, fair value   $ 535   $ 0
Interest rate 3.625% 3.625% 3.625% 3.625%
Senior Notes | 4.375% Senior Notes        
Debt Instrument [Line Items]        
Face amount   $ 1,000   $ 1,000
Long-term debt, fair value   $ 1,110   $ 1,026
Interest rate 4.375% 4.375% 4.375% 4.375%
Senior Notes | 3.625% Senior Notes        
Debt Instrument [Line Items]        
Face amount € 1,300,000,000 $ 1,588 € 1,300,000,000 $ 1,459
Long-term debt, fair value   $ 1,776   $ 1,565
Interest rate 3.625% 3.625% 3.625% 3.625%
Senior Notes | 4.875% Senior Notes        
Debt Instrument [Line Items]        
Face amount   $ 1,600   $ 1,600
Long-term debt, fair value   $ 1,807   $ 1,670
Interest rate 4.875% 4.875% 4.875% 4.875%
Senior Notes | 5.875% Senior Notes        
Debt Instrument [Line Items]        
Face amount   $ 1,900   $ 1,900
Long-term debt, fair value   $ 2,280   $ 2,111
Interest rate 5.875% 5.875% 5.875% 5.875%
Senior Notes | 4.625% Senior Notes        
Debt Instrument [Line Items]        
Face amount € 1,100,000,000 $ 1,344 € 1,100,000,000 $ 1,234
Long-term debt, fair value   $ 1,630   $ 1,378
Interest rate 4.625% 4.625% 4.625% 4.625%
Senior Notes | 6.375% Senior Notes        
Debt Instrument [Line Items]        
Face amount   $ 800   $ 800
Long-term debt, fair value   $ 995   $ 916
Interest rate 6.375% 6.375% 6.375% 6.375%
Senior Notes | 3.875% Senior Notes        
Debt Instrument [Line Items]        
Face amount € 1,200,000,000 $ 1,466 € 1,200,000,000 $ 1,346
Long-term debt, fair value   $ 1,700   $ 1,429
Interest rate 3.875% 3.875% 3.875% 3.875%
Senior Notes | 5.375% Senior Notes        
Debt Instrument [Line Items]        
Face amount   $ 900   $ 900
Long-term debt, fair value   $ 1,061   $ 960
Interest rate 5.375% 5.375% 5.375% 5.375%
Senior Notes | 3.625% Senior Notes        
Debt Instrument [Line Items]        
Face amount € 1,100,000,000 $ 1,344 € 1,100,000,000 $ 1,234
Long-term debt, fair value   $ 1,533   $ 1,273
Interest rate 3.625% 3.625% 3.625% 3.625%
Senior Notes | 4.875% Senior Notes        
Debt Instrument [Line Items]        
Face amount   $ 1,000   $ 1,000
Long-term debt, fair value   $ 1,155   $ 1,019
Interest rate 4.875% 4.875% 4.875% 4.875%
v3.20.4
Debt - Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Debt Disclosure [Abstract]    
Less than one year $ 1,264,020 $ 736,969
Due after one year and through three years 2,136,997 2,581,471
Due after three years and through five years 3,614,906 1,705,201
Due after five years 14,841,164 15,699,800
Total debt obligations $ 21,857,087 $ 20,723,441
v3.20.4
Debt - Revolving Line of Credit (Details) - Revolving Credit Facility
 12 Months Ended
Dec. 31, 2020
USD ($)
Line of Credit Facility [Line Items]  
Line of credit facility, maximum borrowing capacity $ 750,000,000
Amount borrowed $ 0
Commitment fee percentage 0.10%
London Interbank Offered Rate (LIBOR)  
Line of Credit Facility [Line Items]  
Basis spread on variable rate 0.75%
Federal Funds Rate  
Line of Credit Facility [Line Items]  
Basis spread on variable rate 0.50%
One-Month LIBOR Rate  
Line of Credit Facility [Line Items]  
Basis spread on variable rate 1.00%
One-Month LIBOR Rate | Minimum  
Line of Credit Facility [Line Items]  
Basis spread on variable rate 0.00%
v3.20.4
Commitments and Contingencies (Streaming Content) (Narrative) (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Contractual Obligation [Line Items]    
Total streaming content obligations $ 19,218,830 $ 19,490,082
Current content liabilities 4,429,536 4,413,561
Non-current content liabilities 2,618,084 3,334,323
Unrecorded streaming obligations 12,200,000 11,800,000
Current Content Liabilities    
Contractual Obligation [Line Items]    
Current content liabilities 4,400,000 4,400,000
Non-current Content Liabilities    
Contractual Obligation [Line Items]    
Non-current content liabilities $ 2,600,000 $ 3,300,000
v3.20.4
Commitments and Contingencies (Expected Timing of Payments for Commitments) (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]    
Less than one year $ 8,980,868 $ 8,477,367
Due after one year and through 3 years 7,819,563 8,352,731
Due after 3 years and through 5 years 1,973,091 2,041,340
Due after 5 years 445,308 618,644
Total content obligations $ 19,218,830 $ 19,490,082
v3.20.4
Guarantees—Indemnification Obligations (Details)
Dec. 31, 2020
USD ($)
Indemnification Agreement  
Loss Contingencies [Line Items]  
Indemnification guarantee accrual $ 0
v3.20.4
Stockholders' Equity (Voting Rights) (Narrative) (Details)
 12 Months Ended
Dec. 31, 2020
vote
Stockholders' Equity Note [Abstract]  
Number of voting rights per share 1
v3.20.4
Stockholders' Equity (Stock Option Plans) (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Aggregate intrinsic value $ 6,922      
Shares available for grant (in shares) 21,702,085 6,111,561 8,699,941 10,739,915
Total intrinsic value of options exercised $ 1,596 $ 666 $ 863  
Weighted-average remaining contractual term (in years) 5 years 6 months 18 days      
Cash received from option exercised $ 235 $ 72 $ 125  
Expiration period 10 years      
2020 Stock Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Shares available for grant (in shares) 17,500,000      
2011 Stock Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Shares available for grant (in shares) 5,530,106      
v3.20.4
Stockholders' Equity (Summary of Activity Related to Stock Option Plans) (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]      
Shares available for grant, beginning balances 6,111,561 8,699,941 10,739,915
Options outstanding, number of shares, beginning balance (in shares) 20,859,326 20,479,278 21,647,350
Shares available for grant, number of shares authorized (in shares) 17,500,000    
Options outstanding, number of shares granted (in shares) 1,909,476 2,588,380 2,039,974
Options outstanding, number of shares, exercised (in shares) (4,088,612) (2,208,052) (3,205,911)
Options outstanding, number of shares expired (in shares) (3,380) (280) (2,135)
Shares available for grant, ending balances 21,702,085 6,111,561 8,699,941
Options outstanding, number of shares, ending balance (in shares) 18,676,810 20,859,326 20,479,278
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]      
Options outstanding, weighted-average exercise price, beginning balance (dollars per share) $ 124.28 $ 89.61 $ 61.13
Options outstanding, weighted-average exercise price, granted (dollars per share) 432.34 320.66 311.66
Options outstanding, weighted-average exercise price, exercised (dollars per share) 58.35 32.88 38.66
Options expired, weighted-average exercise price (dollars per share) 27.54 6.74 4.60
Options outstanding, weighted-average exercise price, ending balance (dollars per share) $ 170.23 $ 124.28 $ 89.61
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]      
Options outstanding, number of shares, vested and exercisable (in shares) 18,676,810    
Options outstanding, weighted-average exercise price, vested and exercisable (in dollars per share) $ 170.23    
Weighted-average remaining contractual term (in years) 5 years 6 months 18 days    
Aggregate intrinsic value, vested and exercisable $ 6,922    
v3.20.4
Stockholders' Equity (Summary of Assumptions Used to Value Stock Option Grants) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Stockholders' Equity Note [Abstract]      
Dividend yield 0.00% 0.00% 0.00%
Expected volatility, minimum 37.00% 37.00% 40.00%
Expected volatility, maximum 45.00% 41.00% 42.00%
Risk-free interest rate, minimum 0.67% 1.74% 2.61%
Risk-free interest rate, maximum 1.71% 2.74% 3.09%
Suboptimal exercise factor, minimum 3.34 3.07 2.80
Suboptimal exercise factor, maximum 3.67 3.23 3.01
Valuation data:      
Weighted-average fair value (in dollars per share) $ 217.42 $ 156.60 $ 157.19
Total stock-based compensation expense $ 415,180 $ 405,376 $ 320,657
Total income tax impact on provision $ 91,718 $ 90,856 $ 67,575
v3.20.4
Income Taxes (Schedule of Income before Income Taxes) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]      
United States $ 2,789,064 $ 1,719,326 $ 845,402
Foreign 410,285 342,905 381,056
Income before income taxes $ 3,199,349 $ 2,062,231 $ 1,226,458
v3.20.4
Income Taxes (Components of Provision for Income Taxes) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Current tax provision:      
Federal $ 24,221 $ 21,498 $ (22,176)
State 65,821 45,228 (10,234)
Foreign 277,846 223,328 133,146
Total current 367,888 290,054 100,736
Deferred tax provision:      
Federal (57,765) (28,003) (37,396)
State 164,685 (54,507) (52,391)
Foreign (36,854) (12,229) 4,267
Total deferred 70,066 (94,739) (85,520)
Provision for income taxes $ 437,954 $ 195,315 $ 15,216
v3.20.4
Income Taxes (Reconciliation of Provision for Income Taxes) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]      
Expected tax expense at U.S. Federal statutory rates $ 671,864 $ 433,059 $ 257,556
State income taxes, net of Federal income tax effect 65,808 47,909 33,611
Foreign earnings at other than U.S. rates 12,212 56,969 63,519
Federal and California R&D tax credits (113,882) (134,523) (140,749)
Valuation allowance on California R&D tax credits 183,283 0 0
Excess tax benefits on stock-based compensation (339,436) (148,693) (191,323)
Impact of the Tax Cuts and Jobs Act of 2017      
Rate Change / Transition Tax 0 0 (71,516)
Tax effects of the Tax Cuts and Jobs Act (87,194) (127,534) 43,099
Global corporate structure simplification 0 35,939 0
Nondeductible Officers Compensation 30,351 24,111 14,377
Other 14,948 8,078 6,642
Provision for income taxes $ 437,954 $ 195,315 $ 15,216
Effective Tax Rate 14.00% 9.00% 1.00%
v3.20.4
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Deferred tax assets (liabilities):    
Stock-based compensation $ 296,646 $ 258,376
Federal and California tax R&D credits 513,413 408,715
Foreign tax credits 0 137,818
Accruals and reserves 74,239 42,450
Operating leases 436,838 349,208
Foreign Net Operating Losses 29,894 411
Unrealized Gain/Loss 114,884 5,477
Other 2,543 622
Gross deferred tax assets 1,468,457 1,203,077
Depreciation & amortization (229,142) (80,921)
Operating leases (400,380) (329,168)
Gross deferred tax liabilities (629,522) (410,089)
Valuation allowance (249,844) (134,782)
Net deferred tax assets $ 589,091 $ 658,206
v3.20.4
Income Taxes (Narrative) (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Operating Loss Carryforwards [Line Items]      
Deferred tax asset valuation allowance $ 249,844 $ 134,782  
Foreign tax credits 0 137,818  
Unrecognized tax benefits 140,124 66,768 $ 47,534
Reduction in provision for income taxes due to impact of effective tax rate 86,000 $ 57,000  
Research Tax Credit Carryforward      
Operating Loss Carryforwards [Line Items]      
Tax credit carryforward, amount 250,000    
Valuation allowance 250,000    
Federal tax authority      
Operating Loss Carryforwards [Line Items]      
Tax credit carryforward, amount 317,000    
State tax authority      
Operating Loss Carryforwards [Line Items]      
Tax credit carryforward, amount 365,000    
Foreign Tax Authority      
Operating Loss Carryforwards [Line Items]      
Tax credit carryforward, amount 135,000    
Valuation allowance $ 135,000    
v3.20.4
Income Taxes (Summary of Changes in Unrecognized Tax Benefits) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]    
Beginning Balance $ 66,768 $ 47,534
Increases related to tax positions taken during prior periods 11,943 925
Decreases related to tax positions taken during prior periods (3,697) (417)
Increases related to tax positions taken during the current period 65,110 18,826
Decreases related to expiration of statute of limitations 0 (100)
Ending Balance $ 140,124 $ 66,768
v3.20.4
Employee Benefit Plan - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Retirement Benefits [Abstract]      
Eligible employees maximum contribution percentage 80.00%    
Contributions by employer $ 69 $ 47 $ 27
v3.20.4
Employee Benefit Plan - Multiemployer Plan (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Multiemployer Plan [Line Items]      
Total contributions $ 130,382 $ 134,054 $ 59,287
Multiemployer Plan, Type [Extensible List] us-gaap:OtherPensionPlansPostretirementOrSupplementalPlansDefinedBenefitMember    
Multiemployer Pension Benefits      
Multiemployer Plan [Line Items]      
Total contributions $ 78,060 89,703 32,389
Multiemployer Health Benefits      
Multiemployer Plan [Line Items]      
Total contributions $ 52,322 $ 44,351 $ 26,898
v3.20.4
Segment Information (Narrative) (Details)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
USD ($)
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2020
USD ($)
membership
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Segment Reporting [Abstract]                      
Number of operating segments | membership                 1    
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenues $ 6,644,442 $ 6,435,637 $ 6,148,286 $ 5,767,691 $ 5,467,434 $ 5,244,905 $ 4,923,116 $ 4,520,992 $ 24,996,056 $ 20,156,447 $ 15,794,341
United States                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenues                 $ 10,800,000 $ 9,500,000 $ 8,000,000
v3.20.4
Segment Information (Long-lived Assets by Geographic Areas) (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 2,224,891 $ 1,503,459
International    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 773,018 $ 594,047
v3.20.4
Selected Quarterly Financial Data (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]                      
Total revenues $ 6,644,442 $ 6,435,637 $ 6,148,286 $ 5,767,691 $ 5,467,434 $ 5,244,905 $ 4,923,116 $ 4,520,992 $ 24,996,056 $ 20,156,447 $ 15,794,341
Gross profit 2,479,282 2,567,886 2,504,579 2,167,990 2,001,411 2,146,986 1,917,459 1,650,378      
Net income $ 542,156 $ 789,976 $ 720,196 $ 709,067 $ 586,970 $ 665,244 $ 270,650 $ 344,052 $ 2,761,395 $ 1,866,916 $ 1,211,242
Earnings (loss) per share:                      
Basic (in USD per share) $ 1.23 $ 1.79 $ 1.63 $ 1.61 $ 1.34 $ 1.52 $ 0.62 $ 0.79 $ 6.26 $ 4.26 $ 2.78
Diluted (in USD per share) $ 1.19 $ 1.74 $ 1.59 $ 1.57 $ 1.30 $ 1.47 $ 0.60 $ 0.76 $ 6.08 $ 4.13 $ 2.68