Property and equipment are carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the shorter of the estimated useful lives of the respective assets, generally up to 30 years, or the expected lease term for leasehold improvements, if applicable. Leased buildings are capitalized and included in property and equipment when Netflix was involved in the construction funding and did not meet the “sale-leaseback” criteria.

Source: 10-K (filing date: 2019-01-29).

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

US$ in thousands

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Leasehold improvements	282,028	229,848	107,945	107,793	57,339
Information technology	224,296	223,850	185,345	194,054	189,274
Furniture and fixtures	63,667	49,217	32,185	30,914	25,758
Buildings	73,468	40,681	40,681	40,681	40,681
Corporate aircraft	62,560	30,039	—	—	—
DVD operations equipment	53,416	59,316	70,152	88,471	89,144
Machinery and equipment	1,692	—	—	—	—
Land	6,125	—	—	—	—
Capital work-in-progress	19,548	8,267	108,296	8,845	12,495
Property and equipment, gross	786,800	641,218	544,604	470,758	414,691
Accumulated depreciation	(368,519)	(321,814)	(294,209)	(297,346)	(264,816)
Property and equipment, net	418,281	319,404	250,395	173,412	149,875

Based on: 10-K (filing date: 2019-01-29), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-27), 10-K (filing date: 2016-01-28), 10-K (filing date: 2015-01-29).

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 2016 to 2017 and from 2017 to 2018.
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 2016 to 2017 and from 2017 to 2018.

Netflix Inc., Property, Plant and Equipment Ratios

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Average age	47.21%	50.19%	54.02%	63.16%	63.86%

Based on: 10-K (filing date: 2019-01-29), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-27), 10-K (filing date: 2016-01-28), 10-K (filing date: 2015-01-29).

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 of depreciable property, plant and equipment improved from 2016 to 2017 and from 2017 to 2018.

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (US$ in thousands)
Accumulated depreciation	368,519	321,814	294,209	297,346	264,816
Property and equipment, gross	786,800	641,218	544,604	470,758	414,691
Land	6,125	—	—	—	—
Ratio
Average age¹	47.21%	50.19%	54.02%	63.16%	63.86%

Based on: 10-K (filing date: 2019-01-29), 10-K (filing date: 2018-01-29), 10-K (filing date: 2017-01-27), 10-K (filing date: 2016-01-28), 10-K (filing date: 2015-01-29).

2018 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Property and equipment, gross – Land)
= 100 × 368,519 ÷ (786,800 – 6,125) = 47.21%

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 of depreciable property, plant and equipment improved from 2016 to 2017 and from 2017 to 2018.

Netflix Inc. (NFLX)

Analysis of Property, Plant and Equipment

Property, Plant and Equipment Accounting Policy

Property, Plant and Equipment Disclosure

Property, Plant and Equipment Ratios (Summary)

Average Age