Commitments and Contingencies Streaming Content At December 31, 2018 , the Company had $19.3 billion of obligations comprised of $4.7 billion included in "Current content liabilities" and $3.8 billion of "Non-current content liabilities" on the Consolidated Balance Sheets and $10.8 billion of obligations that are not reflected on the Consolidated Balance Sheets as they did not yet meet the criteria for asset recognition. At December 31, 2017 , the Company had $17.7 billion of obligations comprised of $4.2 billion included in "Current content liabilities" and $3.3 billion of "Non-current content liabilities" on the Consolidated Balance Sheets and $10.2 billion of obligations that are not reflected on the Consolidated Balance Sheets as they did not yet meet the criteria for asset recognition. The expected timing of payments for these streaming content obligations is as follows: As of December 31, 2018 2017 (in thousands) Less than one year $ 8,611,398 $ 7,446,947 Due after one year and through 3 years 8,841,561 8,210,159 Due after 3 years and through 5 years 1,684,582 1,894,001 Due after 5 years 148,334 143,535 Total streaming content obligations $ 19,285,875 $ 17,694,642 Content obligations include amounts related to the acquisition, licensing and production of streaming content. Obligations that are in non-U.S. dollar currencies are translated to the U.S. dollar at period end rates. An obligation for the production of content includes non-cancelable commitments under creative talent and employment agreements as well as other production related commitments. An obligation for the acquisition and licensing of content is incurred at the time the Company enters into an agreement to obtain future titles. Once a title becomes available, a content liability is recorded on the Consolidated Balance Sheets. Certain agreements include the obligation to license rights for unknown future titles, the ultimate quantity and/or fees for which are not yet determinable as of the reporting date. Traditional film output deals, or certain TV series license agreements where the number of seasons to be aired is unknown, are examples of such license agreements. The Company does not include any estimated obligation for these future titles beyond the known minimum amount. However, the unknown obligations are expected to be significant. Lease obligations The Company leases facilities under non-cancelable operating leases with various expiration dates through 2034 . Several lease agreements contain rent escalation clauses or rent holidays. For purposes of recognizing minimum rental expenses on a straight-line basis over the terms of the leases, the Company uses the date of initial possession to begin amortization, which is generally when the Company enters the space and begins to make improvements in preparation for intended use. 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 of Operations. The Company has the option to extend or renew most of its leases which may increase the future minimum lease commitments. Because the terms of the Companys facilities lease agreements for its original Los Gatos, California headquarters site required the Companys involvement in the construction funding of the buildings, the Company is the deemed owner (for accounting purposes only) of these buildings. Accordingly, the Company recorded an asset of $41 million , representing the total costs of the buildings and improvements, including the costs paid by the lessor (the legal owner of the buildings), with corresponding liabilities. Upon completion of construction of each building, the Company did not meet the sale-leaseback criteria for de-recognition of the building assets and liabilities. Therefore the leases are accounted for as financing obligations. At December 31, 2018 , the lease financing obligation balance was $28 million , the majority of which is recorded in Other non-current liabilities, on the Consolidated Balance Sheets. The remaining future minimum payments under the lease financing obligation are $11 million . The lease financing obligation balance at the end of the lease term will be approximately $22 million which approximates the net book value of the buildings to be relinquished to the lessor. In addition to the lease financing obligation, future minimum lease payments include $1,157 million as of December 31, 2018 related to non-cancelable operating leases for the expanded headquarters in Los Gatos, California and the office space in Los Angeles, California. Future minimum payments under lease financing obligations and non-cancelable operating leases as of December 31, 2018 are as follows: Year Ending December 31, Future Minimum Payments (in thousands) 2019 $ 172,470 2020 139,366 2021 145,175 2022 156,527 2023 151,200 Thereafter 943,630 Total minimum payments $ 1,708,368 Rent expense associated with the operating leases was $107 million , $75 million and $53 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Legal Proceedings From time to time, in the normal course of its operations, the Company is subject to litigation matters and claims, including claims relating to employee relations, business practices and patent infringement. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict and the Company's view of these matters may change in the future as the litigation and events related thereto unfold. The Company expenses legal fees as incurred. The Company records a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. An unfavorable outcome to any legal matter, if material, could have an adverse effect on the Company's operations or its financial position, liquidity or results of operations. The Company is involved in litigation matters not listed herein but does not consider the matters to be material either individually or in the aggregate at this time. The Company's view of the matters not listed may change in the future as the litigation and events related thereto unfold.