Netflix Inc., balance sheet: property, plant and equipment

US$ in thousands

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Land	50,700	6,125	6,125	—	—
Buildings	42,717	33,141	73,468	40,681	40,681
Leasehold improvements	524,537	354,999	282,028	229,848	107,945
Furniture and fixtures	110,185	87,465	63,667	49,217	32,185
Information technology	283,014	243,565	224,296	223,850	185,345
Corporate aircraft	110,629	108,995	62,560	30,039	—
Machinery and equipment	34,633	46,415	55,108	59,316	70,152
Capital work-in-progress	298,558	100,521	19,548	8,267	108,296
Property and equipment, gross	1,454,973	981,226	786,800	641,218	544,604
Accumulated depreciation	(494,790)	(416,005)	(368,519)	(321,814)	(294,209)
Property and equipment, net	960,183	565,221	418,281	319,404	250,395

Item	Description	The company
Property and equipment, gross	Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Netflix Inc.’s property and equipment, gross increased from 2018 to 2019 and from 2019 to 2020.
Property and equipment, net	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Netflix Inc.’s property and equipment, net increased from 2018 to 2019 and from 2019 to 2020.

Netflix Inc., asset age ratios

		Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
	Average age ratio	35.23%	42.66%	47.21%	50.19%	54.02%

Asset age ratio	Description	The company
Average age ratio	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient.	Netflix Inc.’s average age ratio of depreciable property, plant and equipment improved from 2018 to 2019 and from 2019 to 2020.

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in thousands)
Accumulated depreciation	494,790	416,005	368,519	321,814	294,209
Property and equipment, gross	1,454,973	981,226	786,800	641,218	544,604
Land	50,700	6,125	6,125	—	—
Asset Age Ratio
Average age¹	35.23%	42.66%	47.21%	50.19%	54.02%

2020 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Property and equipment, gross – Land)
= 100 × 494,790 ÷ (1,454,973 – 50,700) = 35.23%

Asset age ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient.	Netflix Inc.’s average age ratio of depreciable property, plant and equipment improved from 2018 to 2019 and from 2019 to 2020.

Netflix Inc. (NASDAQ:NFLX)

Analysis of Property, Plant and Equipment