Find the financial statements for the last two years of a publicly held company. These are often available from the company?s website, the SEC, or the SNHU Online library. Using the spreadsheet structures you developed in the 6-3 activity, complete a horizontal and vertical analysis of this company. I've attached the financial statements for Netflix
Created by EDGAR Online, Inc. NETFLIX INC TABLE1 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 For the transition period from to Commission File Number: 000-49802 _____________________________________________________________________ Netflix, Inc. Created by EDGAR Online, Inc. NETFLIX INC TABLE2 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Market Information 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. 2014 High First quarter Second quarter Third quarter Fourth quarter 2013 Low $458.00 450.82 489.29 467.99 High $319.07 299.50 412.51 315.54 Low $197.62 248.85 320.39 389.16 $90.69 159.00 212.00 282.80 Created by EDGAR Online, Inc. NETFLIX INC INCOME_STATEMENT Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 2014 Revenues Operating income Net income Earnings per share: Basic Diluted Weighted-average common shares outstanding: Basic Diluted $5,504,656 402,648 266,799 Year ended December 31, 2013 2012 (in thousands, except per share data) $4,374,562 $3,609,282 228,347 49,992 112,403 17,152 2011 2010 $3,204,577 376,068 226,126 $2,162,625 283,641 160,853 $4.44 $4.32 $1.93 $1.85 $0.31 $0.29 $4.28 $4.16 $3.06 $2.96 60,078 61,699 58,198 60,761 55,521 58,904 52,847 54,369 52,529 54,304 Created by EDGAR Online, Inc. NETFLIX INC CASH_FLOW Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Consolidated Statements of Cash Flows: Year Ended December 31, 2014 2013 2012 2011 2010 $21,586 (58,151) $317,712 186,550 $276,401 131,007 (in thousands) Net cash provided by operating activities Free cash flow (1) $16,483 (126,699) $97,831 (16,300) Created by EDGAR Online, Inc. NETFLIX INC BALANCE_SHEET Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Consolidated Balance Sheets: As of December 31, 2014 2013 2012 2011 2010 $748,078 2,874,170 564,865 3,967,890 200,000 200,000 1,076,622 744,673 $797,811 1,966,643 605,802 3,069,196 200,000 200,000 739,628 642,810 $350,387 361,979 248,652 982,067 200,000 48,179 290,164 (in thousands) Cash, cash equivalents and short-term investments Total content library, net Working capital Total assets Long-term debt Long-term debt due to related party Non-current content liabilities Total stockholders' equity $1,608,496 4,899,028 1,277,315 7,056,651 900,000 1,575,832 1,857,708 $1,200,405 3,797,492 904,560 5,412,563 500,000 1,345,590 1,333,561 Created by EDGAR Online, Inc. NETFLIX INC TABLE3 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Other Data: 2014 Net global streaming member additions during period (1) Total global streaming members (1) 13,041 57,391 As of / Year Ended December 31, 2013 2012 (in thousands) 11,083 44,350 9,738 33,267 2011 23,529 2010 - Created by EDGAR Online, Inc. NETFLIX INC TABLE4 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 As of/ Year Ended December 31, 2014 2013 2012 $4,374,562 $228,347 $112,403 44,350 $3,609,282 $49,992 $17,152 33,267 Change 2014 vs. 2013 2013 vs. 2012 (in thousands) Revenues Operating income Net income Global streaming members $5,504,656 $402,648 $266,799 57,391 26% 76% 137% 29% 21% 357% 555% 33% Created by EDGAR Online, Inc. NETFLIX INC TABLE5 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Segment Results Domestic Streaming Segment Year ended December 31, 2014 as compared to the year ended December 31, 2013 As of/ Year Ended December 31, Change 2014 2013 2014 vs. 2013 (in thousands, except revenue per member and percentages) Members: Net additions 5,694 6,274 (580) Members at end of period 39,114 33,420 5,694 Paid members at end of period 37,698 31,712 5,986 Average monthly revenue per member $8.14 $7.97 $0.17 Contribution profit: Revenues Cost of revenues Marketing Contribution profit Contribution margin $3,431,434 2,201,761 293,453 936,220 27% $2,751,375 1,863,376 265,232 622,767 23% $680,059 338,385 28,221 313,453 -9% 17% 19% 2% 25% 18% 11% 50% Created by EDGAR Online, Inc. NETFLIX INC TABLE6 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 As of/ Year Ended December 31, Change 2013 2012 2013 vs. 2012 (in thousands, except revenue per member and percentages) Members: Net additions Members at end of period Paid members at end of period Average monthly revenue per member Contribution profit: Revenues Cost of revenues Marketing Contribution profit Contribution margin 6,274 33,420 31,712 $7.97 5,475 27,146 25,471 $7.97 799 6,274 6,241 $- 15% 23% 25% 0% $2,751,375 1,863,376 265,232 622,767 23% $2,184,868 1,570,600 245,259 369,009 17% $566,507 292,776 19,973 253,758 26% 19% 8% 69% Created by EDGAR Online, Inc. NETFLIX INC TABLE7 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 International Streaming Segment Year ended December 31, 2014 as compared to the year ended December 31, 2013 As of/ Year Ended December 31, Change 2014 2013 2014 vs. 2013 (in thousands, except revenue per member and percentages) Members: Net additions 7,347 4,809 2,538 53% Members at end of period 18,277 10,930 7,347 67% Paid members at end of period 16,778 9,722 7,056 73% Average monthly revenue per member $8.34 $8.26 $0.08 1% Contribution loss: Revenues Cost of revenues Marketing Contribution loss Contribution margin $1,308,061 1,154,117 313,733 (159,789) (12 $712,390 782,304 204,418 (274,332) )% (39 $595,671 371,813 109,315 114,543 )% 84% 48% 53% -42% Created by EDGAR Online, Inc. NETFLIX INC TABLE8 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 As of/ Year Ended December 31, Change 2013 2012 2013 vs. 2012 (in thousands, except revenue per member and percentages) Members: Net additions Members at end of period Paid members at end of period Average monthly revenue per member Contribution loss: Revenues Cost of revenues Marketing Contribution loss Contribution margin 4,809 10,930 9,722 $8.26 546 4,809 4,830 $0.46 13% 79% 99% 6% $712,390 782,304 204,418 (274,332) (39 4,263 6,121 4,892 $7.80 $287,542 483,295 193,390 (389,143) $424,848 299,009 11,028 114,811 148% 62% 6% -30% )% (135 )% Created by EDGAR Online, Inc. NETFLIX INC TABLE9 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Domestic DVD Segment Year ended December 31, 2014 as compared to the year ended December 31, 2013 As of/ Year Ended December 31, Change 2014 2013 2014 vs. 2013 (in thousands, except revenue per member and percentages) Members: Net losses Members at end of period Paid members at end of period Average monthly revenue per member Contribution profit: Revenues Cost of revenues Marketing Contribution profit Contribution margin (1,163) 5,767 5,668 $10.29 (1,294) 6,930 6,765 $10.25 (131) (10 )% (1,163) (17 )% (1,097) (16 )% $0.04 $765,161 396,882 368,279 48% $910,797 471,523 292 438,982 48% $(145,636) (16 )% (74,641) (16 )% (292) (100 )% (70,703) (16 )% 0% Created by EDGAR Online, Inc. NETFLIX INC TABLE10 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 As of/ Year Ended December 31, Change 2013 2012 2013 vs. 2012 (in thousands, except revenue per member and percentages) Members: Net losses Members at end of period Paid members at end of period Average monthly revenue per member Contribution profit: Revenues Cost of revenues Marketing Contribution profit Contribution margin (1,294) 6,930 6,765 $10.25 (2,941) 8,224 8,049 $10.21 (1,647) (56 )% (1,294) (16 )% (1,284) (16 )% $0.04 $910,797 471,523 292 438,982 48% $1,136,872 598,163 559 538,150 47% $(226,075) (20 )% (126,640) (21 )% (267) (48 )% (99,168) (18 )% 0% Created by EDGAR Online, Inc. NETFLIX INC TABLE11 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 General and administrative As a percentage of revenues Year Ended December 31, Change 2014 2013 2014 vs. 2013 (in thousands, except percentages) $269,741 $180,301 $89,440 5% 4% 50% Created by EDGAR Online, Inc. NETFLIX INC TABLE12 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Provision for Income Taxes Provision for income taxes Effective tax rate Year Ended December 31, Change 2014 2013 2014 vs. 2013 (in thousands, except percentages) $82,570 $58,671 $23,899 24% 34% 41% Created by EDGAR Online, Inc. NETFLIX INC TABLE13 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Net cash provided by operating activities $ Net cash used in investing activities Net cash provided by financing activities Non-GAAP free cash flow reconciliation: Net cash provided by operating activities Acquisition of DVD content library Purchases of property and equipment Other assets Non-GAAP free cash flow Year Ended December 31, 2014 2013 (in thousands) 16,483 $97,831 (42,866) (255,968) 541,712 476,264 16,483 (74,790) (69,726) 1,334 $(126,699) 97,831 (65,927) (54,143) 5,939 $(16,300) Created by EDGAR Online, Inc. NETFLIX INC TABLE14 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Net cash provided by operating activities $ Net cash used in investing activities Net cash provided by financing activities Non-GAAP free cash flow reconciliation: Net cash provided by operating activities Acquisition of DVD content library Purchases of property and equipment Other assets Non-GAAP free cash flow Year Ended December 31, 2013 2012 (in thousands) 97,831 $21,586 (255,968) (244,740) 476,264 5,589 97,831 (65,927) (54,143) 5,939 $(16,300) 21,586 (48,275) (40,278) 8,816 $(58,151) Created by EDGAR Online, Inc. NETFLIX INC TABLE15 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Payments due by Period Contractual obligations (in thousands): Streaming content obligations (1) Debt (2) Lease obligations (3) Other purchase obligations (4) Total Less than 1 year Total $9,451,112 1,290,948 211,133 496,916 $11,450,109 1-3 years $3,747,648 49,875 35,501 220,393 $4,053,417 More than 5 years 3-5 years $4,495,103 99,750 64,775 269,584 $4,929,212 $1,164,308 99,750 34,727 6,654 $1,305,439 $44,053 1,041,573 76,130 285 $1,162,041 Created by EDGAR Online, Inc. NETFLIX INC TABLE16 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Due within one year Due after one year and through 5 years Total (in thousands) $113,864 381,024 $494,888 Created by EDGAR Online, Inc. NETFLIX INC TABLE17 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Exhibit Number 3.10 3.20 3.30 4.10 4.20 4.30 10.1 10.2 10.3 10.4 10.50 10.6 21.10 23.10 24 31.10 31.20 32.1* 101 Exhibit Description Amended and Restated Certificate of Incorporation Amended and Restated Bylaws Certificate of Amendment to the Amended and Restated Certificate of Incorporation Form of Common Stock Certificate Indenture, dated as of February 1, 2013, by and between the Company and Wells Fargo Bank, National Association, as Trustee. Indenture, dated as of February 19, 2014, by and between the Company and Wells Fargo Bank, National Association, as Trustee. Form of Indemnification Agreement entered into by the registrant with each of its executive officers and directors Amended and Restated 2002 Stock Plan 2011 Stock Plan Amended and Restated Executive Severance and Retention Incentive Plan Registration Rights Agreement, dated as of February 19, 2014, by and among the Company and Morgan Stanley & Co. LLC, as representative of the Initial Purchasers listed in Schedule 1 thereto Performance Bonus Plan List of Significant Subsidiaries Consent of Ernst & Young LLP Power of Attorney (see signature page) Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The following financial information from Netflix, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on January 29, 2015, formatted in XBRL includes: (i) Consolidated Statements of Operations for the Years Ended December 31, 2014, 2013 and 2012, (ii) Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2014, 2013 and 2012, (iii) Consolidated Statements of Cash Flows for the Years Ended December 31, 2014, 2013 and 2012, (iv) Consolidated Balance Sheets as of December 31, 2014 and 2013, (v) Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2014, 2013 and 2012 and (vi) the Notes to Consolidated Financial Statements. Form Incorporated by Reference File No. Exhibit Filing Date 10-Q 8-K 000-49802 000-49802 3.10 August 2, 2004 3.10 March 20, 2009 10-Q 000-49802 3.30 August 2, 2004 S-1/A 333-83878 4.10 April 16, 2002 8-K 001-35727 4.10 February 1, 2013 8-K 001-35727 4.10 February 19, 2014 S-1/A 333-83878 Def 14A 000-49802 Def 14A 000-49802 10-K 10.10 March 20, 2002 A A 000-49802 8-K 001-35727 Def 14A 001-35727 Filed Herewith March 31, 2006 April 20, 2011 10.70 February 1, 2013 A 10.10 February 19, 2014 April 28, 2014 X X X X X X Created by EDGAR Online, Inc. NETFLIX INC INCOME_STATEMENT2 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 NETFLIX, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Year ended December 31, Revenues Cost of revenues Marketing Technology and development General and administrative Operating income Other income (expense): Interest expense Interest and other income (expense) Loss on extinguishment of debt Income before income taxes Provision for income taxes Net income Earnings per share: Basic Diluted Weighted-average common shares outstanding: Basic Diluted 2014 $5,504,656 3,752,760 607,186 472,321 269,741 402,648 2013 $4,374,562 3,117,203 469,942 378,769 180,301 228,347 2012 $3,609,282 2,652,058 439,208 329,008 139,016 49,992 (50,219) (3,060) 349,369 82,570 $266,799 (29,142) (3,002) (25,129) 171,074 58,671 $112,403 (19,986) 474 30,480 13,328 $17,152 $4.44 $4.32 $1.93 $1.85 $0.31 $0.29 60,078 61,699 58,198 60,761 55,521 58,904 Created by EDGAR Online, Inc. NETFLIX INC TABLE18 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 NETFLIX, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Year ended December 31, Net income Other comprehensive income (loss): Foreign currency translation adjustments Change in unrealized gains (losses) on available-for-sale securities, net of tax of $(156), $(697), and $538, respectively Total other comprehensive income (loss) Comprehensive income 2014 $266,799 2013 $112,403 2012 $17,152 (7,768) (253) 1,772 (1,116) 1,357 856 (8,021) $258,778 656 $113,059 2,213 $19,365 Created by EDGAR Online, Inc. NETFLIX INC CASH_FLOW2 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 NETFLIX, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2014 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Additions to streaming content library Change in streaming content liabilities Amortization of streaming content library Amortization of DVD content library Depreciation and amortization of property, equipment and intangibles Stock-based compensation expense Excess tax benefits from stock-based compensation Other non-cash items Loss on extinguishment of debt Deferred taxes Changes in operating assets and liabilities: Other current assets Accounts payable Accrued expenses Deferred revenue Other non-current assets and liabilities Net cash provided by operating activities Cash flows from investing activities: Acquisition of DVD content library Purchases of property and equipment Other assets Purchases of short-term investments Proceeds from sale of short-term investments Proceeds from maturities of short-term investments Net cash used in investing activities Cash flows from financing activities: Proceeds from issuance of common stock Proceeds from public offering of common stock, net of issuance costs Proceeds from issuance of debt Debt issuance costs Redemption of debt Excess tax benefits from stock-based compensation Principal payments of lease financing obligations Net cash provided by financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year Supplemental disclosure: Income taxes paid Interest paid 2013 2012 $266,799 $112,403 $17,152 (3,773,459) 593,125 2,656,279 71,491 (3,049,758) 673,785 2,121,981 71,325 (2,515,506) 762,089 1,591,218 65,396 54,028 115,239 (89,341) 15,282 (30,063) 48,374 73,100 (81,663) 5,332 25,129 (22,044) 45,469 73,948 (4,543) (8,392) (30,071) (8,758) 83,812 55,636 58,819 (52,406) 16,483 62,234 18,374 1,941 46,295 (8,977) 97,831 (5,432) (4,943) 9,806 20,676 4,719 21,586 (74,790) (69,726) 1,334 (426,934) 385,300 (65,927) (54,143) 5,939 (550,264) 347,502 (48,275) (40,278) 8,816 (477,321) 282,953 141,950 (42,866) 60,925 (255,968) 29,365 (244,740) 60,544 124,557 4,124 400,000 (7,080) 89,341 (1,093) 541,712 500,000 (9,414) (219,362) 81,663 (1,180) 476,264 (464) (295) 4,543 (2,319) 5,589 (6,686) (3,453) (197) 508,643 604,965 $1,113,608 314,674 290,291 $604,965 (217,762) 508,053 $290,291 $50,573 41,085 $7,465 19,114 $28,853 19,009 Created by EDGAR Online, Inc. NETFLIX INC BALANCE_SHEET2 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 NETFLIX, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) As of December 31, 2014 Assets Current assets: Cash and cash equivalents Short-term investments Current content library, net Other current assets Total current assets Non-current content library, net Property and equipment, net Other non-current assets Total assets Liabilities and Stockholders' Equity Current liabilities: Current content liabilities Accounts payable Accrued expenses Deferred revenue Total current liabilities Non-current content liabilities Long-term debt Other non-current liabilities Total liabilities Commitments and contingencies (Note 6) Stockholders' equity: Preferred stock, $0.001 par value; 10,000,000 shares authorized at December 31, 2014 and 2013; no shares issued and outstanding at December 31, 2014 and 2013 Common stock, $0.001 par value; 160,000,000 shares authorized at December 31, 2014 and 2013; 60,415,841 and 59,607,001 issued and outstanding at December 31, 2014 and 2013, respectively Additional paid-in capital Accumulated other comprehensive (loss) income Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 2013 $1,113,608 494,888 2,125,702 206,271 3,940,469 2,773,326 149,875 192,981 $7,056,651 $604,965 595,440 1,706,421 151,937 3,058,763 2,091,071 133,605 129,124 $5,412,563 $2,117,241 201,581 69,746 274,586 2,663,154 1,575,832 900,000 59,957 5,198,943 $1,775,983 108,435 54,018 215,767 2,154,203 1,345,590 500,000 79,209 4,079,002 - 60 1,042,810 (4,446) 819,284 1,857,708 $7,056,651 - 60 777,441 3,575 552,485 1,333,561 $5,412,563 Created by EDGAR Online, Inc. NETFLIX INC STOCKHOLDERS_EQUITY Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 NETFLIX, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in thousands, except share data) Balances as of December 31, 2011 Net income Other comprehensive income Issuance of common stock upon exercise of options Stock-based compensation expense Excess stock option income tax benefits Balances as of December 31, 2012 Net income Other comprehensive income Issuance of common stock upon exercise of options Note conversion Stock-based compensation expense Excess stock option income tax benefits Balances as of December 31, 2013 Net income Other comprehensive loss Issuance of common stock upon exercise of options Stock-based compensation expense Excess stock option income tax benefits Balances as of December 31, 2014 Common Stock Shares Amount 55,398,615 $55 - Accumulated Other Comprehensive (Loss) Income Additional Paid-in Capital $219,119 - 188,552 - 1 - 4,123 73,948 55,587,167 - $56 - 4,426 $301,616 - 1,688,774 2,331,060 - 2 2 - 124,555 198,206 73,100 59,607,001 - $60 - 79,964 $777,441 - - 61,190 115,239 808,840 60,415,841 $60 88,940 $1,042,810 Total Stockholders' Equity Retained Earnings $706 2,213 $2,919 656 $3,575 (8,021) $(4,446) $422,930 17,152 $440,082 112,403 $552,485 266,799 $819,284 $642,810 17,152 2,213 4,124 73,948 4,426 $744,673 112,403 656 124,557 198,208 73,100 79,964 $1,333,561 266,799 (8,021) 61,190 115,239 88,940 $1,857,708 Created by EDGAR Online, Inc. NETFLIX INC TABLE19 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Year ended December 31, 2014 (in thousands, except per share data) Basic earnings per share: Net income Shares used in computation: Weighted-average common shares outstanding Basic earnings per share Diluted earnings per share: Net income Convertible Notes interest expense, net of tax Numerator for diluted earnings per share Shares used in computation: Weighted-average common shares outstanding Convertible Notes shares Employee stock options Weighted-average number of shares Diluted earnings per share 2013 2012 $266,799 $112,403 $17,152 60,078 $4.44 58,198 $1.93 55,521 $0.31 $266,799 266,799 $112,403 49 112,452 $17,152 195 17,347 60,078 1,621 61,699 $4.32 58,198 715 1,848 60,761 $1.85 55,521 2,331 1,052 58,904 $0.29 Created by EDGAR Online, Inc. NETFLIX INC TABLE20 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Cash Level 1 securities: Money market funds Level 2 securities: Corporate debt securities Government securities Asset and mortgage-backed securities Certificate of deposits Agency securities Total Cash Level 1 securities: Money market funds Level 2 securities: Corporate debt securities Government securities Asset and mortgage-backed securities Certificate of deposits Agency securities Total As of December 31, 2014 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses (in thousands) $1,007,543 $$111,759 295,500 168,749 112 3,600 26,665 $1,613,928 432 120 5 $557 316,465 143,812 93,118 23,425 17,951 $1,204,938 1,245 287 229 $1,761 $1,007,543 (199) (95) (1) $(295) As of December 31, 2013 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses (in thousands) $483,959 $$126,208 Estimated Fair Value (654) (18) (418) (2) $(1,092) 111,759 295,733 168,774 112 3,600 26,669 $1,614,190 Estimated Fair Value $483,959 126,208 317,056 144,081 92,929 23,425 17,949 $1,205,607 Created by EDGAR Online, Inc. NETFLIX INC TABLE21 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 As of December 31, 2014 2013 (in thousands) Cash and cash equivalents $ 1,113,608 $604,965 Short-term investments 494,888 595,440 Non-current assets (1) 5,694 5,202 Total $1,614,190 $1,205,607 Created by EDGAR Online, Inc. NETFLIX INC TABLE22 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Due within one year Due after one year and through 5 years Total short-term investments (in thousands) $113,864 381,024 $494,888 Created by EDGAR Online, Inc. NETFLIX INC TABLE23 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Content Library Content library consisted of the following: As of December 31, 2014 2013 (in thousands) Total content library, gross $8,497,403 $6,474,688 Accumulated amortization (3,598,375) (2,677,196) Total content library, net 4,899,028 3,797,492 Current content library, net 2,125,702 1,706,421 Non-current content library, net $ 2,773,326 $2,091,071 Created by EDGAR Online, Inc. NETFLIX INC TABLE24 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Property and Equipment, Net Property and equipment and accumulated depreciation consisted of the following: Information technology assets Furniture and fixtures Building Leasehold improvements DVD operations equipment Capital work-in-progress Property and equipment, gross Less: Accumulated depreciation Property and equipment, net As of December 31, 2014 2013 (in thousands) $189,274 $139,306 25,758 21,011 40,681 40,681 57,339 51,194 89,144 96,361 12,495 8,643 414,691 357,196 (264,816) (223,591) $149,875 $133,605 Estimated Useful Lives (in Years) 3 years 3 years 30 years Over life of lease 5 years Created by EDGAR Online, Inc. NETFLIX INC TABLE25 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Less than one year Due after one year and through 3 years Due after 3 years and through 5 years Due after 5 years Total streaming content obligations As of December 31, 2014 2013 (in thousands) $3,747,648 $2,972,325 4,495,103 3,266,907 1,164,308 929,645 44,053 83,284 $9,451,112 $7,252,161 Created by EDGAR Online, Inc. NETFLIX INC TABLE26 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Year Ending December 31, Thereafter Total minimum payments Future Minimum Payments (in thousands) 2015 $35,501 2016 37,078 2017 27,697 2018 19,804 2019 14,923 76,130 $211,133 Created by EDGAR Online, Inc. NETFLIX INC TABLE27 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Options Outstanding Shares Available for Grant Balances as of December 31, 2011 Granted Exercised Canceled Expired Balances as of December 31, 2012 Granted Exercised Balances as of December 31, 2013 Granted Exercised Balances as of December 31, 2014 Vested and exercisable at December 31, 2014 WeightedAverage Exercise Price Number of Shares WeightedAverage Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Thousands) 7,013,508 (1,803,798) 48 (1,160,721) 2,957,754 1,803,798 (188,552) (48) - $66.59 73.94 21.85 35.95 4,049,037 (642,720) - 4,572,952 642,720 (1,688,774) $71.33 208.94 73.75 3,406,317 (545,573) - 3,526,898 545,573 (808,840) $95.25 402.85 75.65 2,860,744 3,263,631 $151.53 6.14 $654,673 3,263,631 $151.53 6.14 $654,673 Created by EDGAR Online, Inc. NETFLIX INC TABLE28 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Stock-Based Compensation Vested stock options granted after June 30, 2004 and before January 1, 2007 can be exercised up to one year following termination of employment. Vested stock options granted after January 2007 will remain exercisable for the full ten year contractual term regardless of employment status. The following table summarizes the assumptions used to value option grants using the lattice-binomial model and the valuation data: Year Ended December 31, Dividend yield Expected volatility Risk-free interest rate Suboptimal exercise factor Valuation data: Weighted-average fair value (per share) Total stock-based compensation expense (in thousands) Total income tax benefit related to stock options (in thousands) 2014 0% 41% - 48% 2.39% - 2.83% 2.66 - 5.44 2013 0% 51% - 54% 1.87% - 2.71% 2.33 - 3.92 2012 0% 55% - 65% 1.61% - 2.01% 2.26 - 3.65 $211.22 $113.74 $41.00 115,239 73,100 73,948 43,999 28,096 28,537 Created by EDGAR Online, Inc. NETFLIX INC TABLE29 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Balance as of December 31, 2012 Other comprehensive income before reclassifications Amounts reclassified from accumulated other comprehensive income Net increase (decrease) in other comprehensive income Balance as of December 31, 2013 Other comprehensive (loss) income before reclassifications Amounts reclassified from accumulated other comprehensive (loss)income Net decrease in other comprehensive (loss) income Balance as of December 31, 2014 Change in unrealized gains on available-for-sale Foreign currency securities Total (in thousands) $1,381 $1,538 1,772 $2,919 (1,597) 175 481 481 1,772 $3,153 (1,116) $422 656 $3,575 (7,768) 337 (7,431) (590) (590) (253) $169 (8,021) $(4,446) - (7,768) $(4,615) Created by EDGAR Online, Inc. NETFLIX INC INCOME_STATEMENT3 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Year Ended December 31, 2014 2013 2012 $159,126 11,948 $171,074 $27,885 2,595 $30,480 (in thousands) United States $325,081 Foreign 24,288 Income before income taxes $ 349,369 Created by EDGAR Online, Inc. NETFLIX INC TABLE30 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Year Ended December 31, 2014 2013 2012 $58,558 15,154 7,003 80,715 $34,387 7,850 1,162 43,399 (18,930) (2,751) (363) (22,044) $58,671 (26,903) (3,168) (30,071) $13,328 (in thousands) Current tax provision: Federal $86,623 State 9,866 Foreign 16,144 Total current 112,633 Deferred tax provision: Federal (10,994) State (17,794) Foreign (1,275) Total deferred (30,063) Provision for income taxes $ 82,570 Created by EDGAR Online, Inc. NETFLIX INC TABLE31 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Year Ended December 31, 2014 2013 2012 $122,279 $59,878 $10,667 13,274 (18,655) 8,053 (13,841) 2,914 (1,803) (38,612) 4,284 $82,570 4,581 $58,671 1,550 $13,328 (in thousands) Expected tax expense at U.S. federal statutory rate of 35% State income taxes, net of Federal income tax effect R&D tax credit Release of tax reserves on previously unrecognized tax benefits Other Provision for income taxes Created by EDGAR Online, Inc. NETFLIX INC TABLE32 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 As of December 31, 2014 (in thousands) Deferred tax assets (liabilities): Stock-based compensation Accruals and reserves Depreciation and amortization R&D credits Other Total deferred tax assets Valuation allowance Net deferred tax assets $100,397 13,415 (11,708) 21,014 (2,778) 120,340 $120,340 2013 $69,201 13,022 (11,159) 19,196 824 91,084 (481) $90,603 Created by EDGAR Online, Inc. NETFLIX INC TABLE33 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Balance as of December 31, 2012 Increases related to tax positions taken during prior periods Decreases related to tax positions taken during prior periods Increases related to tax positions taken during the current period Balance as of December 31, 2013 Decreases related to tax positions taken during prior periods Increases related to tax positions taken during the current period Decreases related to settlements with taxing authorities Balance as of December 31, 2014 $43,337 4 (25) 24,915 $68,231 (39,015) 11,174 (5,578) $34,812 Created by EDGAR Online, Inc. NETFLIX INC TABLE34 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 United States $ International 2014 (in thousands) 138,704 11,171 2013 $126,455 7,150 Created by EDGAR Online, Inc. NETFLIX INC TABLE35 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Domestic Streaming Total members at end of period (1) Revenues Cost of revenues Marketing Contribution profit (loss) Other operating expenses Operating income Other income (expense) Provision for income taxes Net income 39,114 $3,431,434 2,201,761 293,453 $936,220 As of/Year ended December 31, 2014 International Domestic Streaming DVD Consolidated (in thousands) $3,476,226 $1,392,701 $30,101 $4,899,028 1,657,673 998,606 71,491 2,727,770 Domestic Streaming Total content library, net Amortization of content library As of/Year ended December 31, 2014 International Domestic Streaming DVD Consolidated (in thousands) 18,277 5,767 $1,308,061 $765,161 $5,504,656 1,154,117 396,882 3,752,760 313,733 607,186 $(159,789) $368,279 $1,144,710 742,062 402,648 (53,279) 82,570 $266,799 Created by EDGAR Online, Inc. NETFLIX INC TABLE36 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Domestic Streaming Total members at end of period (1) Revenues Cost of revenues Marketing Contribution profit (loss) Other operating expenses Operating income Other income (expense) Provision for income taxes Net income 33,420 $2,751,375 1,863,376 265,232 $622,767 As of/Year ended December 31, 2013 International Domestic Streaming DVD Consolidated (in thousands) $2,973,023 $804,690 $19,779 $3,797,492 1,420,076 701,905 71,325 2,193,306 Domestic Streaming Total content library, net Amortization of content library As of/Year ended December 31, 2013 International Domestic Streaming DVD Consolidated (in thousands) 10,930 6,930 $712,390 $910,797 $4,374,562 782,304 471,523 3,117,203 204,418 292 469,942 $(274,332) $438,982 $787,417 559,070 228,347 (57,273) 58,671 $112,403 Created by EDGAR Online, Inc. NETFLIX INC TABLE37 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Domestic Streaming Total members at end of period (1) Revenues Cost of revenues Marketing Contribution profit (loss) Other operating expenses Operating income Other income (expense) Provision for income taxes Net income 27,146 $2,184,868 1,570,600 245,259 $369,009 As of/Year ended December 31, 2012 International Domestic Streaming DVD Consolidated (in thousands) $2,317,070 $527,235 $29,865 $2,874,170 1,152,446 438,772 65,396 1,656,614 Domestic Streaming Total content library, net Amortization of content library As of/Year ended December 31, 2012 International Domestic Streaming DVD Consolidated (in thousands) 6,121 8,224 $287,542 $1,136,872 $3,609,282 483,295 598,163 2,652,058 193,390 559 439,208 $(389,143) $538,150 $518,016 468,024 49,992 (19,512) 13,328 $17,152 Created by EDGAR Online, Inc. NETFLIX INC TABLE38 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 December 31 2014 Total revenues Gross profit Net income Earnings per share: Basic Diluted 2013 Total revenues Gross profit Net income (loss) Earnings (loss) per share: Basic Diluted September 30 June 30 (in thousands, except for per share data) March 31 $1,484,728 470,396 83,371 $1,409,432 455,038 59,295 $1,340,407 425,559 71,018 $1,270,089 400,903 53,115 $1.38 1.35 $0.99 0.96 $1.18 1.15 $0.89 0.86 $1,175,230 354,553 48,421 $1,105,999 307,099 31,822 $1,069,372 308,698 29,471 $1,023,961 287,009 2,689 $0.81 0.79 $0.54 0.52 $0.51 0.49 $0.05 0.05 Created by EDGAR Online, Inc. NETFLIX INC TABLE39 Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 Exhibit Number 3.10 3.20 3.30 4.10 4.20 4.30 10.1 10.2 10.3 10.4 10.5 10.6 21.10 23.10 24 31.10 31.20 32.1* 101 Exhibit Description Amended and Restated Certificate of Incorporation Amended and Restated Bylaws Certificate of Amendment to the Amended and Restated Certificate of Incorporation Form of Common Stock Certificate Indenture, dated as of February 1, 2013, by and between the Company and Wells Fargo Bank, National Association, as Trustee. Indenture, dated as of February 19, 2014, by and between the Company and Wells Fargo Bank, National Association, as Trustee. Form of Indemnification Agreement entered into by the registrant with each of its executive officers and directors Amended and Restated 2002 Stock Plan 2011 Stock Plan Amended and Restated Executive Severance and Retention Incentive Plan Registration Rights Agreement, dated as of February 19, 2014, by and among the Company and Morgan Stanley & Co. LLC, as representative of the Initial Purchasers listed in Schedule 1 thereto Performance Bonus Plan List of Significant Subsidiaries Consent of Ernst & Young LLP Power of Attorney (see signature page) Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The following financial information from Netflix, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on January 29, 2015, formatted in XBRL includes: (i) Consolidated Statements of Operations for the Years Ended December 31, 2014, 2013 and 2012, (ii) Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2014, 2013 and 2012, (iii) Consolidated Statements of Cash Flows for the Years Ended December 31, 2014, 2013 and 2012, (iv) Consolidated Balance Sheets as of December 31, 2014 and 2013, (v) Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2014, 2013 and 2012 and (vi) the Notes to Consolidated Financial Statements. Form 10-Q Incorporated by Reference File No. Exhibit Filing Date 000-49802 3.10 August 2, 2004 8-K 10-Q 000-49802 000-49802 3.10 March 20, 2009 3.30 August 2, 2004 S-1/A 333-83878 4.10 April 16, 2002 8-K 001-35727 4.10 February 1, 2013 8-K 001-35727 4.10 February 19, 2014 S-1/A 333-83878 10.10 March 20, 2002 Def 14A 000-49802 A Def 14A 000-49802 10-K 000-49802 A 8-K 001-35727 Def 14A 001-35727 Filed Herewith March 31, 2006 April 20, 2011 10.70 February 1, 2013 10.10 February 19, 2014 A April 28, 2014 X X X X X X Created by EDGAR Online, Inc. NETFLIX INC SUBSIDIARIES Form Type: 10-K Period End: Dec 31, 2014 Date Filed: Jan 29, 2015 21.1 LIST OF SIGNIFICANT SUBSIDIARIES Exhibit 21.1 NETFLIX, INC. LIST OF SIGNIFICANT SUBSIDIARIES* Legal Name Netflix Luxembourg S.a r.l. Netflix Streaming Services, Inc. Netflix Entretenimento Brasil Ltda. Jurisdiction Luxembourg United States Brazil Percent Owned 100% 100% 100% Horizontal Analysis - Balance Sheet December 31, 20xx Cash 2014 2013 Change % Change $64,000.00 $50,000.00 $14,000.00 22% 96,000.00 100,000.00 (4,000.00) -4% Inventory 160,000.00 200,000.00 (40,000.00) -25% Fixed Assets 480,000.00 650,000.00 (170,000.00) -35% Total Assets 800,000.00 1,000,000.00 (200,000.00) -25% Accounts Payable $16,000.00 $70,000.00 $(54,000.00) -338% Mortgage Payable 80,000.00 120,000.00 (40,000.00) -50% Bonds Payable 160,000.00 200,000.00 (40,000.00) -25% Common Stock 400,000.00 400,000.00 Retained Earnings 144,000.00 210,000.00 Accounts Receivale Total liabilities and equity Vertical Analysis - Balance Sheet December 31, 20xx Net Sales $800,000.00 2014 - 0% (66,000.00) -46% $1,000,000.00 $(200,000.00) -25% 2013 Change % Change $1,000,000.00 $800,000.00 $200,000.00 25% Cost of Goods Sold 600000 400000 200000 50% Gross Margin 400000 400000 0 0% $150,000.00 $120,000.00 $30,000.00 25% 100000 88000 12000 14% $250,000.00 $208,000.00 $42,000.00 20% $150,000.00 $192,000.00 $(42,000.00) -22% Incomes taxes $60,000.00 $80,000.00 -20000 -25% Net Income $90,000.00 $112,000.00 $(22,000.00) -20% Expenses: Selling expenses Admnistrative expenses Income before taxes
