Other Balance Sheet Items

9 Months Ended

Sep. 30, 2023

Balance Sheet Related Disclosures [Abstract]

Other Balance Sheet Items

Selected Balance Sheet Items

Other Current Assets

Other current assets consist of the following: 

	September 30,		December 31,
	2023		2022
	(In millions)
Prepaid expenses	$	27.4	$	24.3
Prepaid registry fees	24.6		24.3
Accounts receivable, net	4.6		6.2
Unrealized gain on foreign currency forward contracts	4.5		0.2
Other	2.4		3.3
Total other current assets	$	63.5	$	58.3

Other Long-Term Assets

Other long-term assets consist of the following: 

	September 30,		December 31,
	2023		2022
	(In millions)
Operating lease right-of-use asset	$	8.8	$	7.2
Long-term prepaid registry fees	8.6		9.1
Restricted cash	5.3		5.4
Long-term prepaid expenses	4.1		6.6
Other	2.3		2.3
Total other long-term assets	$	29.1	$	30.6

The prepaid registry fees in the tables above relate to the fees the Company pays to ICANN for each annual term of .com domain name registrations and renewals which are deferred and amortized over the domain name registration term.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of the following: 

	September 30,		December 31,
	2023		2022
	(In millions)
Accounts payable and accrued expenses	$	9.4	$	9.8
Customer deposits	75.3		72.0
Accrued employee compensation	50.8		59.0
Taxes payable	43.2		37.4
Interest payable	24.6		19.5
Accrued registry fees	13.3		12.7
Customer incentives payable	7.4		7.1
Current operating lease liabilities	5.6		5.5
Other accrued liabilities	2.6		3.5
Total accounts payable and accrued liabilities	$	232.2	$	226.5

The balance of customer deposits varies from period to period due to the timing of payments from certain large customers. Accrued employee compensation primarily consists of liabilities for employee leave, salaries, payroll taxes, employee contributions to the employee stock purchase plan, and incentive compensation. Accrued employee incentive compensation as of December 31, 2022 was paid during the nine months ended September 30, 2023. Taxes payable reflects amounts accrued for the income tax provision and payments made during the period. This balance fluctuates from period to period due to the timing of income tax payments in the Company’s major tax jurisdictions. Interest payable varies at each period-end based on the payment due dates for each senior note issuance.

Property Plant and Equipment, net

The following table presents the detail of property and equipment, net:

	September 30,		December 31,
	2023		2022
	(In millions)
Computer equipment and software	$	411.7	$	402.7
Buildings and building improvements	260.2		257.5
Land	37.9		31.1
Office equipment and furniture	11.0		10.4
Capital work in progress	15.3		3.6
Leasehold improvements	1.6		1.5
Total cost	737.7		706.8
Less: accumulated depreciation	(499.5)		(474.8)
Total property and equipment, net	$	238.2	$	232.0

In July 2023, the Company purchased a building in Reston, Virginia to be used as its future corporate headquarters for $19.8 million. Based on a valuation of the property, $13.0 million of the total purchase price was allocated to the building which is included in capital work in progress in the table above due to ongoing construction. The remaining $6.8 million was allocated to land.

Long-term Tax and Other Liabilities

Long-term tax and other liabilities consist of the following: 

	September 30,		December 31,
	2023		2022
	(In millions)
Long-term tax liabilities	$	42.5	$	60.5
Long-term operating lease liabilities	2.9		1.6
Long-term tax and other liabilities	$	45.4	$	62.1

Long-term tax liabilities as of September 30, 2023 reflects a $19.3 million reclassification to current liabilities of the next installment of the transition tax liability on accumulated foreign earnings resulting from the 2017 Tax Cuts and Jobs Act.