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URL:  http://boards.fool.com/i-dont-understand-the-762-from-howards-numbers-29653345.aspx

Subject:  Re: Netflix accounting tangle Date:  11/7/2011  11:09 AM
Author:  zoningfool Number:  3845 of 3916

I don't understand the $762 from Howard's numbers either, so I'll let him explain how he derived it. As far as cash above that which is expensed in the p/l for streaming content--I arrive at $124M:

$1344M in additions to streaming content library
less the $817M increase in liabilities related to streaming content
plus $15M in 'prepaid content'
= -$542M cash changes related to streaming content

The amortization expense for streaming content (which would be recorded on the p/l) is $418M. So that leaves $124M in cash paid above the related expense (in the 9 months ended Sept 30, 2011)
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