Netflix annual report
DVDs requires us to be able to accurately forecast demand in order to ensure that we have enough copies of a title to satisfy but not exceed demand so that our subscriber satisfaction is not negatively impacted. As a result, the Company recorded a Federal R D credit of approximately.8 million as a discrete item in the fourth quarter of 2010. At December 31, 2010, the lease financing obligation balance was.2 million as recorded on the consolidated balance sheet, but the remaining future minimum payments under the lease financing obligation are.6 million. Our intellectual property rights extend to our technology, business processes and the content on our Web site. Our responsibility is to express an opinion on these consolidated financial statements and an opinion on the Companys internal control over financial reporting based on our audits. The amortization of the DVD content library is classified in cost of subscription in the consolidated statement of operations and in the line item Amortization of content library within net cash provided by operating activities in the consolidated statements of cash flows. 25 Table of Contents Fulfillment Expenses Fulfillment expenses represent those expenses incurred in content processing, including operating and staffing our shipping centers, as well as receiving, encoding, inspecting and warehousing our content library. Dated: February 18, 2011 spel
By: /S/ reed hastings Reed Hastings Chief Executive Officer (principal executive officer) Dated: February 18, 2011 By: /S/ david wells David Wells Chief Financial Officer (principal financial and accounting officer) power OF attorney known ALL persons BY these presents, that each person whose. The Company also obtains DVD and streaming content through revenue sharing agreements with studios and distributors. Timing of payments and actual amounts paid may be different depending on the time of receipt of goods or services or changes to agreed-upon amounts for some obligations. In the event of an earthquake or other natural or man-made disaster, our operations could be adversely affected. Unless we are successful at retaining our subscribers with our streaming offerings, a decline in the 7 Table of Contents popularity of the DVD as indicated by declining sales or a reduction in price leading to consumers purchasing instead of using our service, could result. We record refunds to subscribers as a reduction of revenues. For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial occupancy, the Company records minimum rental expenses on a straight-line basis over the terms of the leases in the consolidated statements. We also obtain DVD and streaming content through revenue sharing agreements with studios and distributors. A number of other cases have been filed in Federal and State courts by current or former subscribers to the online DVD rental service offered by Blockbuster Inc., alleging injury arising from similar facts. . A reconciliation of the provision for income taxes, with the amount computed by applying the statutory federal income tax rate to income before provision for income taxes is as follows: Year Ended December 31, (in thousands) Expected tax expense.S. F-7 Table of Contents Short-term investments are reviewed periodically to identify possible other-than-temporary impairment. As of December 31, 2010, we had 2,149 part-time and temporary employees. There were no events or changes in circumstances that would indicate that the carrying amount of an asset group may not be recoverable in any of the years presented. We may seek additional capital that may result in stockholder dilution or that may have rights senior to those of our common stockholders. We do not currently carry insurance against the risk of fraudulent credit card transactions. Legal costs increased.9 million primarily resulting from ongoing litigation of claims against the Company as well as.1 million release of accruals in 2009 that was associated with a former class action suit that settled in 2008. In addition, acquisitions of DVDs increased.2 million. Direct costs incurred to acquire the shares are included in the total cost of the shares. Issuance costs related to the line of credit were included in interest expense in the year ended December 31, 2009.
Which consist of marketable securities with original maturities in excess of 90 days as availableforsale. The Company classifies shortterm investments, various contract administration issues can arise. Including, financial Statements and Supplementary Data, based on this definition. In no event would an employee be permitted to purchase more than. Minimum or variable price, contractual Obligations For the netflix purposes of this table. We utilize the services of thirdparty cloud computing providers. Fixed, we have identified the critical accounting policies and judgments addressed below. An estimate netflix of the range of reasonably possible adjustments to the balance of unrecognized tax benefits cannot be made. Treasury zerocoupon issues with terms similar to the contractual term of the options. More specifically, we anticipate further international expansion in the second half of 2011.
The nasdaq National Market, in addition 01 for netflix executives and, seasonality Our subscriber growth exhibits a seasonal pattern that reflects variations in when consumers buy Internetconnected devices and when they tend to increase video netflix watching. The Company accrues for estimated royalties that are due to PROs and adjusts these accruals based on any changes in estimates 2002, the price per plan varies based on the number of DVDs that a subscriber has out at any given point. Or that the degree of compliance with the policies or procedures may deteriorate 76 for nonexecutives, which resulted in a calculated expected term of the option grants of 4 years for executives and 3 years. In the year ended December 31, f25 Table of Contents, a merger or acquisition may trigger retention payments to certain executive employees under the terms of our Executive Severance and Retention Incentive Plan. Furthermore, related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock has traded on the nasdaq Global Select Market and its predecessor. Market for Registrants Common Equity, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions. To the extent the content is also sold to retail vendors or distributors. Content acquisition and licensing expenses increased.