NetFlix 2008 Annual Report Download - page 65

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NETFLIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
3. Balance Sheet Components
Content Library, Net
Content library and accumulated amortization consisted of the following:
As of December 31,
2008 2007
(in thousands)
Content library, gross ................................... $637,336 $ 694,620
Less accumulated amortization ........................... (520,098) (566,249)
117,238 128,371
Less: Current content library, net .......................... 18,691 16,301
Content library, net ..................................... $ 98,547 $ 112,070
In the fourth quarter of 2008, the Company offset the asset balances and associated accumulated
amortization on fully amortized content library of $224 million related to DVD’s previously identified as being
no longer in circulation.
Property and Equipment, Net
Property and equipment and accumulated depreciation consisted of the following:
As of December 31,
2008 2007
(in thousands)
Computer equipment .............................. 3years $ 44,598 $ 35,585
Other equipment ................................. 3-5years 59,061 41,140
Computer software, including internal-use software ..... 1-3years 30,060 22,058
Furniture and fixtures ............................. 3years 12,304 7,882
Building ........................................ 30years 40,681 37,193
Leasehold improvements ..................... Over life of lease 33,124 18,440
Capital work-in-progress ..................................... 3,958 18,452
Property and equipment, gross ................................. 223,786 180,750
Less: Accumulated depreciation ............................... (98,838) (67,575)
Property and equipment, net ..................................$124,948 $113,175
Capital work-in-progress consists primarily of approximately $3.5 million of equipment not yet in service
and approximately $0.4 million of leasehold improvements.
F-16