NetFlix 2010 Annual Report Download - page 58

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market information and price quotes from well established independent pricing vendors and broker-dealers. Our
procedures include controls to ensure that appropriate fair values are recorded, such as comparing prices obtained
from multiple independent sources. See Note 4 for further information regarding the fair value of the 8.50%
senior notes.
3. Balance Sheet Components
Content Library, Net
Content library and accumulated amortization consisted of the following:
As of December 31,
2010 2009
(in thousands)
DVD content library, gross ...................................... $ 627,392 $ 638,006
Streaming content library, gross .................................. 441,637 104,796
Content library, gross .......................................... 1,069,029 742,802
Less: accumulated amortization .................................. (707,050) (596,663)
361,979 146,139
Less: Current content library, net ................................. 181,006 37,329
Content library, net ............................................ $ 180,973 $ 108,810
Property and Equipment, Net
Property and equipment and accumulated depreciation consisted of the following:
As of December 31,
2010 2009
(in thousands)
Computer equipment ......................... 3years $ 60,289 $ 62,132
Operations and other equipment ................ 5years 72,368 65,059
Software, including internal-use software ......... 3years 26,961 35,401
Furniture and fixtures ......................... 3years 11,438 12,421
Building ................................... 30years 40,681 40,681
Leasehold improvements ................. Over life of lease 36,530 35,156
Capital work-in-progress ................................ 16,882 15,097
Property and equipment, gross ............................ 265,149 265,947
Less: Accumulated depreciation ........................... (136,579) (134,294)
Property and equipment, net .............................. $128,570 $ 131,653
Capital work-in-progress as of December 31, 2010 consists primarily of approximately $16 million of
operations equipment. In 2010, the Company wrote-off fully depreciated equipment and software of $33.9
million related to assets that were no longer in existence.
Other Non-Current Assets
Other non-current assets consisted of the following:
As of December 31,
2010 2009
(in thousands)
Patents, net .............................................. $ 1,587 $ 1,639
Restricted cash ............................................ 4,561 2,829
Debt issuance costs, net ..................................... 5,480 5,966
Other ................................................... 2,462 1,866
Other non-current assets .................................... $14,090 $12,300
F-14