NetFlix 2008 Annual Report Download - page 66

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NETFLIX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Other Assets
Other assets consisted of the following:
As of December 31,
2008 2007
(in thousands)
Intangible assets, net ....................................... $ 1,844 $1,366
Investment in business ..................................... 5,700 —
Long term deposits ........................................ 511 662
Other ................................................... 2,540 2,437
Other assets .............................................. $10,595 $4,465
As of December 31, 2008 and 2007, other assets included restricted cash of $1.9 million, respectively,
related to workers’ compensation insurance deposits. In the second quarter of 2008, the Company paid $2.4
million for plaintiffs’ attorneys’ fees and expenses in the Chavez vs. Netflix, Inc. lawsuit, of which $2.3 million
was included in other current assets as of December 31, 2007.
Intangible assets and accumulated amortization consisted of the following:
As of December 31,
2008 2007
(in thousands)
Patents, gross ............................................. $2,229 $1,566
Less accumulated amortization ............................... (385) (200)
Patents, net .............................................. $1,844 $1,366
The weighted-average remaining estimated lives of the patents are approximately 9 years. Amortization
expense related to intangible assets was $0.2 million, $0.2 million and $0.1 million respectively for the years
ended December 31, 2008, 2007, and 2006. Additionally, the Company expensed $0.4 million related to
historical use of patents acquired in the year ended December 31, 2008.
The annual amortization expense of the patents that existed as of December 31, 2008 is expected to be
approximately $0.2 million for each of the five succeeding years.
Accrued Expenses
Accrued expenses consisted of the following:
As of December 31,
2008 2007
Accrued state sales and use tax ............................... $ 9,127 $ 9,469
Accrued payroll and employee benefits ........................ 5,956 4,607
Accrued settlement costs .................................... 2,409 6,732
Other ................................................... 13,902 15,658
Total accrued expenses ..................................... $31,394 $36,466
F-17