Spreadsheet: 0918f888-a6d9-4ed1-9591-bd08cfbc76ab
Sheet: Cashflow

Netflix, Inc.
Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
 |  |  |  |  |  |  | Three Months Ended |  |  |  | Twelve Months Ended | Three Months Ended |  |  |  | Twelve Months Ended | Three Months Ended
 |  |  |  |  |  |  | March 31, | June 30, | September 30, | December 31, | December 31, | March 31, | June 30, | September 30, | December 31, | December 31, | March 31,
 |  |  |  |  |  |  | 2010 | 2010 | 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 | 2011 | 2012
Cash flows from operating activities:
 | Net income (loss) |  |  |  |  |  | 32272 | 43519 | 37967 | 47095 | 160853 | 60233 | 68214 | 62460 | 35219 |  | -4584
 | Adjustments to reconcile net income (loss) to net cash
 |  | provided by operating activities:
 |  |  | Additions to streaming content library |  |  |  | -50475 | -66157 | -115149 | -174429 | -406210 | -192307 | -612595 | -539285 | -976545 |  | -764893
 |  |  | Change in streaming content liabilities |  |  |  | 12384 | 19807 | 55905 | 80135 | 168231 | 84048 | 422080 | 313781 | 644046 |  | 397553
 |  |  | Amortization of streaming content library |  |  |  | 18679 | 29844 | 44568 | 65009 | 158100 | 85937 | 144466 | 187446 | 281279 |  | 339736
 |  |  | Amortization of DVD content library |  |  |  | 43613 | 35299 | 32578 | 31006 | 142496 | 26990 | 24000 | 23000 | 22754 |  | 20046
 |  |  | Depreciation and amortization of property, equipment and intangibles |  |  |  | 10859 | 9309 | 8678 | 9253 | 38099 | 9826 | 10182 | 11913 | 11826 |  | 11331
 |  |  | Stock-based compensation expense |  |  |  | 5502 | 6928 | 7296 | 8270 | 27996 | 12264 | 15536 | 15705 | 18077 |  | 19332
 |  |  | Excess tax benefits from stock-based compensation |  |  |  | -7424 | -11182 | -16093 | -27515 | -62214 | -15654 | -17868 | -11761 | -501 |  | -3755
 |  |  | Other non-cash items |  |  |  | -3160 | -2900 | -1754 | -1314 | -9128 | -925 | -802 | -1745 | -578 |  | -1519
 |  |  | Deferred taxes |  |  |  | -2761 | -3394 | 3194 | 1999 | -962 | -4982 | -3927 | -5281 | -4407 |  | -10843
 |  |  | Changes in operating assets and liabilities:
 |  |  |  | Prepaid content |  |  | -4963 | -2133 | -25485 | -2895 |  | -12380 | 14787 | -17335 | 21139 |  | 2994
 |  |  |  | Other current assets |  |  | 548 | -9211 | -3374 | -5990 |  | 9498 | 4015 | -8578 | -9710 |  | 11741
 |  |  |  | Accounts payable |  |  | 9429 | 1413 | -8500 | 16872 |  | 15232 | -4231 | -7052 | 20019 |  | -1756
 |  |  |  | Accrued expenses |  |  | 12342 | 6035 | 20294 | 27027 |  | 20293 | 15459 | 23489 | 6319 |  | 1783
 |  |  |  | Deferred revenue |  |  | 12 | 1310 | 1567 | 24197 |  | 15862 | 3892 | 13992 | -12133 |  | 1806
 |  |  |  | Other non-current assets and liabilities |  |  | 348 | 1765 | 535 | -2003 |  | 2388 | 3184 | -11218 | 8662 |  | 137
 |  |  |  |  |  | Net cash provided by operating activities |  |  |  |  |  | 116323 | 86392
Cash flows from investing activities:
 | Acquisitions of DVD content library |  |  |  |  |  | -36902 | -24191 | -29900 | -32908 | -123901 | -22119 | -19065 | -20826 | -23144 |  | -13528
 | Purchases of short-term investments |  |  |  |  |  | -35995 | -21795 | -15379 | -34193 | -107362 | -52266 | -40597 | -7673 | -123214 |  | -299467
 | Proceeds from sale of short-term investments |  |  |  |  |  | 30770 | 32055 | 42238 | 15794 | 120857 | 14961 | 16510 | 37 | 19485 |  | 172335
 | Proceeds from maturities of short-term investments |  |  |  |  |  | 4013 | 4310 | 1995 | 5500 | 15818 | 650 | 15985 | 1805 | 19665 |  | 8275
 | Purchases of property and equipment |  |  |  |  |  | -6393 | -5671 | -7342 | -14431 | -33837 | -16320 | -8626 | -14080 | -10656 |  | -4766
 | Other assets |  |  |  |  |  | 3682 | 3825 | 2782 | 2055 | 12344 | 1419 | 844 | -844 | 2255 |  | 1334
 |  |  |  |  |  | Net cash used in investing activities | -40825 | -11467 | -5606 | -58183 | -116081 | -73675 | -34949
Cash flows from financing activities:
 | Proceeds from issuance of common stock upon exercise of options |  |  |  |  |  | 9918 | 13109 | 10927 | 15822 | 49776 | 6762 | 7418 | 4409 | 1025 |  | 1224
 | Financing costs |  |  |  |  |  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
 | Repurchases of common stock |  |  |  |  |  | -107724 | -45145 | -57390 | 0 | -210259 | -108643 | -51421 | -39602 | 0 |  | 0
 | Excess tax benefits from stock-based compensation |  |  |  |  |  | 7424 | 11182 | 16093 | 27515 | 62214 | 15654 | 17868 | 11761 | 501 |  | 3755
 | Principal payments of lease financing obligations |  |  |  |  |  | -361 | -465 | -470 | -480 | -1776 | -501 | -520 | -526 | -536 |  | -559
 | Proceeds from public offering of common stock, net of issuance costs |  |  |  |  |  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 199947 |  | 0
 | Proceeds from issuance of debt, net of issuance costs |  |  |  |  |  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 198060 |  | 0
 |  |  |  |  |  | Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents |  |  |  |  |  |  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 615
Net increase (decrease) in cash and cash equivalents |  |  |  |  |  |  | -54363 | 27466 | 5781 | 81391 | 60275 | -44080 | 24788
Cash and cash equivalents, beginning of period |  |  |  |  |  |  | 134224 | 79861 | 107327 | 113108 | 134224 | 194499 | 150419
Cash and cash equivalents, end of period |  |  |  |  |  |  | 79861 | 107327 | 113108 | 194499 | 194499 | 150419 | 175207
Non-GAAP free cash flow reconciliation:
 | Net cash provided by operating activities |  |  |  |  |  | 77205 | 60252 | 42227 | 96717 | 276401 | 116323 | 86392
 | Acquisitions of DVD content library |  |  |  |  |  | -36902 | -24191 | -29900 | -32908 | -123901 | -22119 | -19065
 | Purchases of property and equipment |  |  |  |  |  | -6393 | -5671 | -7342 | -14431 | -33837 | -16320 | -8626
 | Other assets |  |  |  |  |  | 3682 | 3825 | 2782 | 2055 | 12344 | 1419 | 844
 | Non-GAAP free cash flow |  |  |  |  |  | 37592 | 34215 | 7767 | 51433 | 131007 | 79303 | 59545