NetFlix 2012 Annual Report Download

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
ÍANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2012
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 000-49802
Netflix, Inc.
(Exact name of Registrant as specified in its charter)
Delaware 77-0467272
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)
100 Winchester Circle
Los Gatos, California 95032
(Address and zip code of principal executive offices)
(408) 540-3700
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of Exchange on which registered
Common stock, $0.001 par value The NASDAQ Stock Market LLC
Preferred Share Purchase Rights The NASDAQ Stock Market LLC
Securities registered pursuant to Section 12(g) of the Act:
None
(Title of Class)
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ÍNo
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No Í
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days. Yes ÍNo
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every
Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§229.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant was required to submit and post such files. Yes ÍNo
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not
be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of
this Form 10-K or any amendment to this Form 10-K. Í
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the
Exchange Act.
Large accelerated filer ÍAccelerated filer Non-accelerated filer Smaller reporting company
(do not check if smaller
reporting company)
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act) Yes No Í
As of June 30, 2012, the aggregate market value of voting stock held by non-affiliates of the registrant, based upon the closing sales
price for the registrant’s common stock, as reported in the NASDAQ Global Select Market System, was $3,278,134,336. Shares of
common stock beneficially owned by each executive officer and director of the Registrant and by each person known by the Registrant to
beneficially own 10% or more of the outstanding common stock have been excluded in that such persons may be deemed to be affiliates.
This determination of affiliate status is not necessarily a conclusive determination for any other purpose.
As of January 31, 2013, there were 55,993,477 shares of the registrant’s common stock, par value $0.001, outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Parts of the registrant’s Proxy Statement for Registrant’s 2013 Annual Meeting of Stockholders are incorporated by reference into
Part III of this Annual Report on Form 10-K.

Table of contents

  • Page 1
    ... aggregate market value of voting stock held by non-affiliates of the registrant, based upon the closing sales price for the registrant's common stock, as reported in the NASDAQ Global Select Market System, was $3,278,134,336. Shares of common stock beneficially owned by each executive officer and...

  • Page 2

  • Page 3
    ... Accounting Fees and Services ...44 44 44 44 44 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities ...Selected Financial Data ...Management's Discussion and Analysis of Financial Condition and Results of Operations ...Quantitative and...

  • Page 4
    [THIS PAGE INTENTIONALLY LEFT BLANK]

  • Page 5
    ... our streaming subscriptions and the decline in our DVD subscriptions; the market opportunity for streaming content; contribution margins; contribution profits (losses); liquidity; free cash flows; revenues; net income; legal costs; operating cash flows; impacts relating to our pricing strategy; our...

  • Page 6
    ... content delivered over the Internet to a host of connected devices- including PCs and Macs, game consoles such as PlayStations, smart TVs, Blu-ray players, home theater systems, Internet video players such as Apple TV and Roku, digital video recorders, and mobile devices. We have a leading market...

  • Page 7
    ... technology, user interfaces, and delivery infrastructure to improve the customer experience. For example, using our "adaptive streaming" technology we automatically and constantly optimize the streaming bit-rate to each user's Internet speed. This minimizes loading and buffering times, delivering...

  • Page 8
    ...DVD direct purchases and DVD revenue sharing agreements. We market our service through various channels, including online advertising, broad-based media, such as television and radio, as well as various strategic partnerships. In connection with marketing the service, we offer free-trial memberships...

  • Page 9
    ... 1997 and completed our initial public offering in May 2002. Our principal executive offices are located at 100 Winchester Circle, Los Gatos, California 95032, and our telephone number is (408) 540-3700. We maintain a Web site at www.netflix.com. The contents of our Web site are not incorporated in...

  • Page 10
    ... to rapid change. New technologies and evolving business models for delivery of entertainment video continue to develop at a fast pace. The growth of Internet-connected devices, including TVs, computers and mobile devices has increased the consumer acceptance of Internet delivery of entertainment...

  • Page 11
    ... 7 Management's Discussion and Analysis of Financial Condition and Results of Operations. Given the multiple-year duration and largely fixed cost nature of content licenses, if subscriber acquisition and retention do not meet our expectations, our margins may be adversely impacted. Payment terms for...

  • Page 12
    ... long-term and fixed cost nature of our content acquisition licenses, may adversely affect our operating results. From time to time, our subscribers express dissatisfaction with our service, including among other things, our title selection, pricing, delivery speed and service interruptions...

  • Page 13
    ... a number of partners to offer instant streaming of content from Netflix to various devices. We currently offer subscribers the ability to receive streaming content through their PCs, Macs and other Internet-connected devices, including Blu-ray players and TVs, digital video players, game consoles...

  • Page 14
    ... the level of management focus on our DVD business are limited. We do not anticipate increasing resources to our DVD operations and the technology used in its operations will not be meaningfully improved. To the extent that we experience service interruptions or other degradations in our DVD-by-mail...

  • Page 15
    ...deliver streaming content or fulfill DVD selections. From time to time, we experience service interruptions and have voluntarily provided affected subscribers with a credit during periods of extended outage. Service interruptions, errors in our software or the unavailability of computer systems used...

  • Page 16
    ... operations and financial condition. Changes in U.S. Postal rates or operations could adversely impact our operating results and subscriber satisfaction. We rely exclusively on the U.S. Postal Service to deliver DVDs from our shipping centers and to return DVDs to us from our subscribers. Increases...

  • Page 17
    ... Postal Service will raise rates again in subsequent years, which would result in increased shipping costs. If the U.S. Postal Service were to change any policies relative to the requirements of first-class mail, including changes in size, weight or machinability qualifications of our DVD envelopes...

  • Page 18
    ... for attempts to link personal identities and other information to data collected on the Internet regarding users' browsing and other habits. Increased regulation of data utilization practices, including self-regulation or findings under existing laws, that limit our ability to use collected data...

  • Page 19
    ...payment processing fees, changes to operating rules or the acceptance of new types of payment methods could increase our operating expenses and adversely affect our business and results of operations. Our subscribers pay for our subscription services predominately using payment cards. Our acceptance...

  • Page 20
    ...DVD fulfillment and delivery operations to handle disruptions in service arising from these events. Because the San Francisco Bay Area is located in an earthquake-sensitive area, we are particularly susceptible to the risk of damage to, or total destruction of, our executive offices and data centers...

  • Page 21
    ... impact revenues and expenses of our international operations and expose us to foreign currency exchange rate risk; • profit repatriation and other restrictions on the transfer of funds; • differing payment processing systems as well as consumer use and acceptance of electronic payment methods...

  • Page 22
    ...us on a hostile basis. In addition, a merger or acquisition may trigger retention payments to certain executive employees under the terms of our Executive Severance and Retention Incentive Plan, thereby increasing the cost of such a transaction. A small number of our stockholders could significantly...

  • Page 23
    ... financial community; • announcements of developments affecting our business, systems or expansion plans by us or others; • competition, including the introduction of new competitors, their pricing strategies and services; • market volatility in general; • the level of demand for our stock...

  • Page 24
    ... through August 2016. We also operate data centers in a leased third-party facility in Santa Clara, California. In the fourth quarter of 2012, the Company entered into a lease agreement to expand its Los Gatos, California headquarters by 137,500 square feet with the ten year lease term commencing...

  • Page 25
    ... Purchases of Equity Securities Our common stock is traded on the NASDAQ Global Select Market under the symbol "NFLX". The following table sets forth the intraday high and low sales prices per share of our common stock for the periods indicated, as reported by the NASDAQ Global Select Market. 2012...

  • Page 26
    ... industry, including Internet content and access providers, Internet software and services companies and e-commerce companies. Historical stock price performance should not be relied upon as an indication of future stock price performance. Netflix S&P North American Technology Internet Index NASDAQ...

  • Page 27
    ... Management's Discussion and Analysis of Financial Condition and Results of Operations and Item 8, Financial Statements and Supplementary Data. Consolidated Statements of Operations: 2012 Year ended December 31, 2011 2010 2009 (in thousands, except per share data) 2008 Revenues ...Cost of revenues...

  • Page 28
    ...our consolidated performance highlights for the years ended December 31: 2012 2011 2010 (in thousands, except per share data) Change 2012 vs. 2011 2011 vs. 2010 Management's Discussion and Analysis of Financial Condition and Results of Operations Revenues ...Contribution profit ...Operating income...

  • Page 29
    ... a percentage of total cost of revenues. We utilize both our own and third-party content delivery networks to help us efficiently stream content in high volume to our subscribers over the Internet. Content delivery expenses therefore also include equipment costs related to Open Connect and all third...

  • Page 30
    ... that the investments in content and marketing associated with the Domestic and International streaming segments will slow relative to revenues to allow for contribution margin expansion over time. Domestic Segments As of /Year Ended December 31, Change 2012 2011 2012 vs. 2011 (in thousands, except...

  • Page 31
    ... by increases in customer service center expenses to support our growth in domestic subscriptions. Marketing Marketing expenses decreased $40.7 million in 2012 as compared to 2011 primarily due to a decrease in marketing program spending in television, radio and direct mail advertising partially...

  • Page 32
    ...by a decrease in direct mail and inserts, and payments made to our consumer electronic partners. The increase in marketing program spending was partially offset by decreases in the costs of free trials. International Streaming Segment Change As of /Year Ended December 31, 2012 2011 2012 vs. 2011 (in...

  • Page 33
    ... internationally. As of /Year Ended December 31, Change 2011 2010 2011 vs. 2010 (in thousands, except percentages) Subscriptions: Net additions ...Subscriptions at end of period ...Paid subscriptions at end of period ...Contribution profit: Revenues ...Cost of revenues ...Marketing ...Contribution...

  • Page 34
    ... increase in stock-based compensation. These increases are primarily due to a 35% growth in average headcount supporting continued improvements in our streaming service and international expansion. Year Ended December 31, Change 2011 2010 2011 vs. 2010 (in thousands, except percentages) Technology...

  • Page 35
    ... increase in stock-based compensation. We expect legal costs to continue at a high level for the foreseeable future as we defend claims against us. Year Ended December 31, Change 2011 2010 2011 vs. 2010 (in thousands, except percentages) General and administrative ...As a percentage of revenues...

  • Page 36
    ... 31, 2012 and 2011, respectively. Our primary uses of cash include the acquisition and licensing of content, content delivery expenses, marketing and payroll related expenses. We expect to continue to make significant investments to license streaming content both domestically and internationally and...

  • Page 37
    ...various content providers that may result in an increase in content library and a corresponding increase in liabilities on the Consolidated Balance Sheets. The payment terms for these license fees may extend over the term of the license agreements, which typically range from six months to five years...

  • Page 38
    ... provided by operating activities decreased $294.9 million, primarily due to increased payments for content acquisition and licensing other than DVD library of $779.5 million or 59%, partially offset by an increase in subscription revenues of $404.7 million or 13%. Cash used in investing activities...

  • Page 39
    ... subscription revenues of $1,042.0 million or 48%. This increase was partially offset by increased payments for content acquisition and licensing other than DVD library of $766.3 million or 138%. Operating cash flows were further impacted by increases in payroll expenses and payments for advertising...

  • Page 40
    ... fourth quarter of 2012, the Company entered into a facilities lease agreement to expand its Los Gatos headquarters to a nearby site. The ten year lease term will commence after the construction of the buildings is complete. Future minimum lease payments associated with this lease are $63.4 million...

  • Page 41
    ... these estimates. Streaming Content Accounting We obtain content distribution rights in order to stream TV shows, movies, original programming to subscribers' TVs, computers and mobile devices. Streaming content is generally licensed for a fixed fee for the term of the license agreement which may...

  • Page 42
    ... cost to a lower net realizable value was recorded in any of the periods presented. We have licenses with performing rights organizations ("PROs"), and are currently involved in negotiations with other PROs, that hold certain rights to music "publicly performed" in connection with streaming content...

  • Page 43
    ...requisite service period, which is the vesting period. We calculate the fair value of new stock-based compensation awards under our stock option plans using a lattice-binomial model. We use a Black-Scholes model to determine the fair value of employee stock purchase plan shares. These models require...

  • Page 44
    ... with the prevailing interest rate. Our short-term investments were comprised of corporate debt securities, government and agency securities and asset and mortgage-backed securities. Changes in interest rates could adversely affect the market value of the securities we hold that are classified as...

  • Page 45
    ... reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding...

  • Page 46
    ... of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of Netflix, Inc. as of December 31, 2012, and the related consolidated statements of operations, comprehensive income, stockholders' equity and cash flows for the year then ended of Netflix, Inc. and...

  • Page 47
    Item 9B. Other Information None. 43

  • Page 48
    ... Ownership of Certain Beneficial Owners and Management" and "Equity Compensation Plan Information" in our Proxy Statement for the Annual Meeting of Stockholders. Item 13. Certain Relationships and Related Transactions, and Director Independence Information required by this item is incorporated...

  • Page 49
    ...Preferred Shares Rights Agreement, dated as of November 2, 2012, by and between Netflix, Inc. and Computershare Trust Company, N.A., as rights agent Form of Indemnification Agreement entered into by the registrant with each of its executive officers and directors 2002 Employee Stock Purchase Plan 45...

  • Page 50
    ... financial information from Netflix, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2012 filed with the SEC on January 31, 2013, formatted in XBRL includes: (i) Consolidated Statements of Operations for the Years Ended December 31, 2012, 2011 and 2010, (ii) Consolidated Statements...

  • Page 51
    ...of Cash Flows for the Years Ended December 31, 2012, 2011 and 2010 ...Consolidated Balance Sheets as of December 31, 2012 and 2011 ...Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2012, 2011 and 2010 ...Notes to Consolidated Financial Statements ... 48 50 51 52 53...

  • Page 52
    ... consolidated balance sheet of Netflix, Inc. as of December 31, 2012, and the related consolidated statements of operations, comprehensive income, stockholders' equity and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our...

  • Page 53
    ... balance sheet of Netflix, Inc. and subsidiaries (the Company) as of December 31, 2011, and the related consolidated statements of operations, comprehensive income, stockholders' equity, and cash flows for each of the years in the two-year period ended December 31, 2011. These consolidated financial...

  • Page 54
    NETFLIX, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) 2012 Year ended December 31, 2011 2010 Revenues ...Cost of revenues ...Marketing ...Technology and development ...General and administrative ...Operating income ...Other income (expense): Interest expense ......

  • Page 55
    NETFLIX, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Year ended December 31, 2012 2011 2010 Net income ...Other comprehensive income (loss): Foreign currency translation adjustments ...Change in unrealized gains on available-for-sale... to consolidated financial statements. 51

  • Page 56
    ...stock-based compensation ...4,543 45,784 62,214 Principal payments of lease financing obligations ...(2,319) (2,083) (1,776) Net cash provided by (used in) financing activities ...5,589 261,656 (100,045) Effect of exchange rate changes on cash and cash equivalents ...(197) - - Net increase (decrease...

  • Page 57
    NETFLIX, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) As of December 31, 2012 2011 Assets Current assets: Cash and cash equivalents ...$ 290,291 $ 508,053 Short-term investments ...457,787 289,758 Current content library, net ...1,368,162 919,709 Prepaid content ...

  • Page 58
    ...of common stock under employee stock purchase plan ...Repurchases of common stock and retirement of outstanding treasury stock ...Stock-based compensation expense ...Excess stock option income tax benefits ... 54 Balances as of December 31, 2010 ...Net income ...Other comprehensive income ... Total...

  • Page 59
    ... impact any prior amounts of reported total assets, total liabilities, stockholders' equity, results of operations or cash flows. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management...

  • Page 60
    ... DVD direct purchases and DVD revenue sharing agreements with various content providers. The Company obtains content distribution rights in order to stream TV shows, movies and original programming to subscribers' TVs, computers and mobile devices. Streaming content is generally licensed for a fixed...

  • Page 61
    ... asset. Accordingly, the Company classifies its DVD library in "Non-current content library, net" on the Consolidated Balance Sheets. The acquisition of DVD content library, net of changes in related liabilities, is classified in the line item "Acquisition of DVD content library" within cash used...

  • Page 62
    ... made to the Company's affiliates and consumer electronics partners and payroll related expenses. Advertising expenses include promotional activities such as television and online advertising, as well as allocated costs of revenues relating to free trial periods. Advertising costs are expensed as...

  • Page 63
    ...stock options, and for 2010, shares that were purchasable pursuant to the Company's employee stock purchase plan ("ESPP"). The Company's ESPP was suspended in 2011 and there were no offerings in 2011 or 2012. The computation of earnings per share is as follows: Year ended December 31, 2012 2011 2010...

  • Page 64
    ... Retained earnings. Direct costs incurred to acquire the shares are included in the total cost of the shares. 2. Short-term Investments The Company's investment policy is consistent with the definition of available-for-sale securities. The Company does not buy and hold securities principally for...

  • Page 65
    ... from an independent pricing service and were evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well-established independent pricing vendors and broker-dealers. The Company's procedures include controls...

  • Page 66
    ...result in an increase in the streaming content library and a corresponding increase in the streaming content liabilities. The payment terms for these streaming license fees may extend over the term of the license agreement, which typically ranges from six months to five years. Property and Equipment...

  • Page 67
    ... to pay cash dividends or to repurchase shares of its common stock, subject to specified exceptions. At December 31, 2012, the Company was in compliance with these covenants. Based on quoted market prices of the Company's publicly traded debt (a Level 3 input for this financial instrument), the fair...

  • Page 68
    ... Statements of Operations. The Company has the option to extend or renew most of its leases which may increase the future minimum lease commitments. Because the terms of the Company's original facilities lease agreements for its current Los Gatos, California headquarters site required the Company...

  • Page 69
    ... on the Consolidated Balance Sheets. The Company has licenses with certain performing rights organizations ("PROs"), and is currently involved in negotiations with other PROs, that hold certain rights to music "publicly performed" in connection with streaming content into various territories...

  • Page 70
    ...relief on behalf of a class of purchasers of the Company's common stock between October 20, 2010 and October 24, 2011. The complaint alleges among other things, that the Company issued materially false and misleading statements regarding the Company's business practices and violated accounting rules...

  • Page 71
    ... accompanying financial statements with respect to these indemnification guarantees. 7. Stockholders' Equity On November 2, 2012, the Board of Directors (the "Board") of the Company authorized and declared a dividend distribution of one right (a "Right") for each outstanding share of common stock...

  • Page 72
    ... purchase rights to employees, directors and consultants. In the first quarter of 2012, 1.2 million shares reserved for future grants under the 2002 Stock Plan expired. A summary of the activities related to the Company's stock option plans is as follows: Options Outstanding WeightedAverage Number...

  • Page 73
    ...six-month purchase period. As of December 31, 2012, there were 2,785,721 shares available for future issuance under the 2002 Employee Stock Purchase Plan. The Company's ESPP was suspended in 2011 and there were no offerings in 2011 or 2012. During the year ended December 31, 2010 employees purchased...

  • Page 74
    ... The total income tax benefit recognized in the income statement related to stock option plans and employee stock purchases was $28.5 million, $22.8 million and $11.2 million for 2012, 2011 and 2010, respectively. Stock Repurchase Program The following table presents a summary of the Company's stock...

  • Page 75
    ... to these earnings is immaterial. Income tax benefits attributable to the exercise of employee stock options at $4.4 million, $45.5 million and $62.2 million for the years ended December 31, 2012, 2011 and 2010, respectively, were recorded directly to additional paid-in-capital. A reconciliation of...

  • Page 76
    ... tax rate. The aggregate changes in the Company's total gross amount of unrecognized tax benefits are summarized as follows (in thousands): Balance as of December 31, 2010 ...Decreases related to tax positions taken during prior periods ...Increases related to tax positions taken during the current...

  • Page 77
    ... segment information for the year ended December 31, 2012: Domestic Streaming As of/Year ended December 31, 2012 International Domestic Streaming DVD Consolidated (in thousands) Total subscriptions at end of period (1) ...Revenues ...Cost of revenues ...Marketing ...Contribution profit (loss...

  • Page 78
    ... Company's segment information for the fourth quarter of 2011: As of/Three Months ended December 31, 2011 Domestic International Domestic Streaming Streaming DVD Consolidated (in thousands) Total subscriptions at end of period (1) ...Revenues ...Cost of revenues ...Marketing ...Contribution profit...

  • Page 79
    ... the right to receive either the Netflix streaming service or Netflix DVD service. In connection with the Company's subscription services, the Company offers free-trial memberships to new and certain rejoining members. A method of payment is required to be provided even during the free-trial period...

  • Page 80
    ...by the undersigned, thereunto duly authorized. Netflix, Inc. Dated: January 31, 2013 By: /S/ REED HASTINGS Reed Hastings Chief Executive Officer (principal executive officer) /S/ DAVID WELLS David Wells Chief Financial Officer (principal financial and accounting officer) Dated: January 31, 2013 By...

  • Page 81
    ...file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange... and Exchange Act of 1934, this Annual Report on...Executive Officer and Director (principal executive officer) Chief Financial Officer (principal financial and accounting officer...

  • Page 82
    ... Trust Company, N.A., as rights agent Form of Indemnification Agreement entered into by the registrant with each of its executive officers and directors 2002 Employee Stock Purchase Plan Amended and Restated 2002 Stock Plan 2011 Stock Plan Description of Director Equity Compensation Plan 10...

  • Page 83
    ... financial information from Netflix, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2012 filed with the SEC on January 31, 2013, formatted in XBRL includes: (i) Consolidated Statements of Operations for the Years Ended December 31, 2012, 2011 and 2010, (ii) Consolidated Statements...

  • Page 84
    ... in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and b) any fraud, whether or not material, that involves management or other employees who...

  • Page 85
    ... in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and b) any fraud, whether or not material, that involves management or other employees who...

  • Page 86
    ...for the year ended December 31, 2012 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such report fairly presents, in all material respects, the financial condition and results of operations of Netflix, Inc. Dated...

  • Page 87

  • Page 88