v3.25.4
Balance Sheet Components
 12 Months Ended
Dec. 31, 2025
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Components Balance Sheet Components
Content Assets, Net
Content assets consisted of the following:
As of December 31,
20252024
(in thousands)
Licensed content, net
$12,138,578 $12,422,309 
Produced content, net
Released, less amortization
10,687,444 10,151,543 
In production
9,210,735 9,317,367 
In development and pre-production
741,635 561,243 
20,639,814 20,030,153 

Content assets, net$32,778,392 $32,452,462 
As of December 31, 2025, approximately $6,381 million, $2,280 million, and $1,469 million of the $12,139 million unamortized cost of the licensed content is expected to be amortized in each of the next three years. As of December 31, 2025, approximately $4,309 million, $2,784 million, and $1,840 million of the $10,687 million unamortized cost of the produced content that has been released is expected to be amortized in each of the next three years.
The following table summarizes the amortization of content assets:
Year Ended December 31,
 202520242023
(in thousands)
Licensed content$8,713,558 $7,689,014 $7,145,446 
Produced content(1)
7,708,608 7,612,503 7,051,991 
Total$16,422,166 $15,301,517 $14,197,437 
(1) Tax incentives earned on qualified production spend generally reduce the cost-basis of content assets and result in lower content amortization over the life of the title. For the years ended December 31, 2025, 2024 and 2023, tax incentives resulted in lower content amortization on produced content of approximately $1,000 million, $899 million and $835 million, respectively.

Property and Equipment, Net
Property and equipment and accumulated depreciation consisted of the following:
As of December 31,Estimated Useful Lives (in Years)
20252024
(in thousands)
Land$155,664 $85,000 
Buildings and improvements537,082 475,684 30 years
Leasehold improvements1,263,051 1,026,593 Over life of lease
Furniture and fixtures157,984 134,987 3 years
Information technology572,407 446,419 
3-5 years
Corporate aircraft99,164 99,175 
8-10 years
Machinery and equipment30,879 15,135 
3-5 years
Capital work-in-progress285,010 228,300 
Property and equipment, gross3,101,241 2,511,293 
Less: Accumulated depreciation(1,096,891)(917,537)
Property and equipment, net$2,004,350 $1,593,756 
    
Leases
The Company has entered into operating leases primarily for real estate. These leases generally have terms which range from 1 year to 15 years, and often include one or more options to renew. These renewal terms can extend the lease term from 1 year to 20 years, and are included in the lease term when it is reasonably certain that the Company will exercise the option. These operating leases are included in “Other non-current assets” on the Company's Consolidated Balance Sheets, and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligations to make lease payments are included in “Accrued expenses and other liabilities” and “Other non-current liabilities” on the Company's Consolidated Balance Sheets. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company has entered into various short-term operating leases with an initial term of twelve months or less. These leases are not recorded on the Company's Consolidated Balance Sheets. All operating lease expense is recognized on a straight-line basis over the lease term. Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company has certain contracts for real estate which may contain lease and non-lease components which it has elected to treat as a single lease component.
The components of lease costs for the years ended December 31, 2025, 2024 and 2023 were as follows:
Year ended December 31,
 202520242023
(in thousands)
Operating lease cost$503,637 $468,282 $430,856 
Short-term lease cost207,324 197,691 207,822 
Total lease cost$710,961 $665,973 $638,678 

Information related to the Company's operating right-of-use assets and related operating lease liabilities were as follows:
Year ended December 31,
202520242023
(in thousands)
Cash paid for operating lease liabilities$506,624 $509,296 $451,525 
Right-of-use assets obtained in exchange for new operating lease obligations465,420 442,391 196,639 
As of December 31,
20252024
(in thousands, except lease term and discount rate)
Operating lease right-of-use assets, net$2,207,161 $2,102,310 
Current operating lease liabilities$460,475 $428,482 
Non-current operating lease liabilities2,052,526 1,983,688 
Total operating lease liabilities$2,513,001 $2,412,170 
Weighted-average remaining lease term7.0 years6.9 years
Weighted-average discount rate3.8 %3.5 %

Maturities of operating lease liabilities as of December 31, 2025 were as follows (in thousands):
Due in 12 month period ended December 31,
2026$555,684 
2027481,542 
2028422,982 
2029351,107 
2030292,154 
Thereafter782,470 
2,885,939 
Less imputed interest(372,938)
Total operating lease liabilities$2,513,001 

Other Current Assets
Other current assets consisted of the following:
As of
December 31,
2025		December 31,
2024
(in thousands)
Trade receivables
$2,031,476 $1,335,304 
Prepaid expenses
498,054 431,924 
Other(1)
1,428,302 1,749,412 
Total other current assets
$3,957,832 $3,516,640 
(1) $552 million and $653 million of receivables related to tax incentives earned on production spend are included in Other as of December 31, 2025 and 2024, respectively.