Consolidated Financial Statement Details

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidated Financial Statement Details

8. Consolidated Financial Statement Details

Restricted cash

(dollars in thousands)	December 31, 2022		December 31, 2021
Restricted cash due to customers	$	700,611	$	593,296
Letters of credit for operating leases	—		2,186
Real estate escrow balances and other	1,629		1,134
Total restricted cash	$	702,240	$	596,616

Prepaid expenses and other assets

(dollars in thousands)	December 31, 2022		December 31, 2021
Costs of obtaining contracts(1)(2)	$	74,272	$	78,465
Prepaid software maintenance and subscriptions(3)	34,766		28,880
Derivative instruments	32,117		7,160
Implementation costs for cloud computing arrangements, net(4)(5)	10,189		11,892
Unbilled accounts receivable	5,775		5,443
Prepaid insurance	4,902		5,363
Taxes, prepaid and receivable	1,855		3,986
Deferred tax assets	1,153		1,546
Receivables for probable insurance recoveries(6)(7)	—		18,202
Other assets	10,929		11,835
Total prepaid expenses and other assets	175,958		172,772
Less: Long-term portion	94,304		77,266
Prepaid expenses and other current assets	$	81,654	$	95,506

(1)Amortization expense from costs of obtaining contracts was $33.6 million, $35.5 million and $37.4 million for the years ended December 31, 2022, 2021 and 2020, respectively, and is included in sales, marketing and customer success expense in our consolidated statements of comprehensive income.

(2)The current portion of costs of obtaining contracts as of December 31, 2022 and 2021 was $29.1 million and $30.2 million, respectively.

(3)The current portion of prepaid software maintenance and subscriptions as of December 31, 2022 and December 31, 2021 was $31.7 million and $24.7 million, respectively.

(4)These costs primarily relate to the multi-year implementations of our new global enterprise resource planning and customer relationship management systems.

(5)Amortization expense from capitalized cloud computing implementation costs was $2.2 million, $1.9 million and $0.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. Accumulated amortization for these costs was $5.2 million and $3.0 million as of December 31, 2022 and 2021, respectively.

(6)All receivables for probable insurance recoveries were classified as current.

(7)See discussion of the Security Incident at Note 11 to these consolidated financial statements.

Accrued expenses and other liabilities

(dollars in thousands)	December 31, 2022		December 31, 2021
Accrued legal costs(1)	$	28,448	$	11,724
Taxes payable(2)	16,667		19,777
Customer credit balances	8,257		8,403
Operating lease liabilities, current portion	7,723		9,170
Accrued commissions and salaries	6,944		7,872
Accrued transaction-based costs related to payments services	5,059		5,427
Contingent consideration liability(3)	2,710		—
Accrued health care costs	2,467		3,042
Accrued vacation costs	2,156		2,234
Accrued bonuses	2,026		5,829
Unrecognized tax benefit	266		1,248
Amounts payable to former EVERFI option holders(4)	—		17,404
Other liabilities	7,573		9,310
Total accrued expenses and other liabilities	90,296		101,440
Less: Long-term portion	4,294		1,344
Accrued expenses and other current liabilities	$	86,002	$	100,096

(1)All accrued legal costs are classified as current.

(2)We deferred payments of the employer's portion of Social Security taxes during 2020 under the Coronavirus, Aid, Relief and Economic Security Act ("CARES Act"), half of which was due by the end of calendar year 2021 with the remainder due by the end of calendar year 2022.

(3)See discussion of our acquisition of Kilter at Note 3 to these consolidated financial statements.

(4)Represents amounts that had not been paid by EVERFI to its former option holders as of December 31, 2021, solely due to the timing of the acquisition on the last day of 2021. See Note 3 to these consolidated financial statements for additional information regarding our acquisition of EVERFI.

Other income, net

	Years ended December 31,
(dollars in thousands)	2022		2021		2020
Interest income	$	1,746	$	392	$	1,660
Currency revaluation gains (losses)	4,635		(1,644)		(1,065)
Other income, net	2,332		1,432		1,063
Other income, net	$	8,713	$	180	$	1,658