Option Grant and Exercise Terms

Table of Contents The following table represents the amortization of content assets: Licensed content Produced content Total Property and Equipment, Net Year ended December 31, 2021 2020 2019 (in thousands) $ $ 8,055,811 4,174,556 12,230,367 $ $ 7,544,631 $ 7,242,799 3,262,281 1,973,448 10,806,912 $ 9,216,247 Property and equipment and accumulated depreciation consisted of the following: As of December 31, Estimated Useful Lives (in Years) 2021 2020 Land Buildings Leasehold improvements Furniture and fixtures $ (in thousands) 82,381 $ 50,700 48,123 42,717 30 years 863,342 524,537 Over life of lease 139,809 110,185 3 years Information technology Corporate aircraft Machinery and equipment Capital work-in-progress Property and equipment, gross Less: Accumulated depreciation Property and equipment, net 380,452 283,014 3 years 110,978 110,629 8 years 32,426 34,633 3-5 years 282,248 298,558 1,939,759 1,454,973 (616,306) (494,790) $ 1,323,453 $ 960,183 Leases The Company has entered into operating leases primarily for real estate. These leases generally have terms which range from 1 year to 15 years, and often include one or more options to renew. These renewal terms can extend the lease term from 1 year to 20 years, and are included in the lease term when it is reasonably certain that the Company will exercise the option. These operating leases are included in "Other non-current assets" on the Company's Consolidated Balance Sheets, and represent the Company's right to use the underlying asset for the lease term. The Company's obligations to make lease payments are included in "Accrued expenses and other liabilities" and "Other non-current liabilities" on the Company's Consolidated Balance Sheets. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company has entered into various short-term operating leases with an initial term of twelve months or less. These leases are not recorded on the Company's Consolidated Balance Sheets. All operating lease expense is recognized on a straight-line basis over the lease term. Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company has certain contracts for real estate which may contain lease and non-lease components which it has elected to treat as a single lease component. The components of lease costs for the years ended December 31, 2021, 2020 and 2019 were as follows: Operating lease cost Short-term lease cost Total lease cost 50 Year ended December 31, 2021 2020 2019 (in thousands) $ $ 389,805 $ 152,765 542,570 $ 323,905 $ 116,606 440,511 $ 218,142 229,747 447,889

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