SUPPLEMENTAL BALANCE SHEET INFORMATION (Note)

12 Months Ended

Dec. 27, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUPPLEMENTAL BALANCE SHEET INFORMATION

SUPPLEMENTAL BALANCE SHEET INFORMATION

Accounts receivable allowance

Due to the uncertain economic environment, it is difficult to estimate the full impact caused by COVID–19 on our clients. However, the allowance for credit loss for accounts receivable as of December 27, 2020 is our best estimate of the amount of expected credit losses. Should actual results deviate from what we have currently estimated, our allowance for credit losses could change significantly.

The activity related to the allowance for accounts receivable was as follows:

(in thousands)	2020		2019		2018
Beginning balance	$	4,288	$	5,026	$	4,344
Cumulative-effect adjustment (1)	524		—		—
Current period provision	6,300		7,661		10,042
Write-offs	(8,181)		(8,358)		(9,349)
Foreign currency translation	(10)		(41)		(11)
Ending balance	$	2,921	$	4,288	$	5,026

(1)As a result of our adoption of the accounting standard for credit losses, we recognized a cumulative-effect adjustment to our account receivable allowance of $0.5 million as of the beginning of the first quarter of 2020.

Prepaid expenses and other current assets

(in thousands)	December 27, 2020		December 29, 2019
Prepaid software agreements	$	8,643	$	9,576
Other prepaid expenses	8,631		7,761
Other current assets	8,863		13,380
Prepaid expenses and other current assets	$	26,137	$	30,717

Property and equipment

(in thousands)	December 27, 2020		December 29, 2019
Buildings and land	$	44,479	$	43,621
Software	127,715		132,378
Computers, furniture and equipment	42,846		57,770
Construction in progress	9,997		8,727
Gross property and equipment	225,037		242,496
Less accumulated depreciation	(153,303)		(176,346)
Property and equipment, net	$	71,734	$	66,150

Capitalized software costs, net of accumulated depreciation, were $27.6 million and $26.0 million as of December 27, 2020 and December 29, 2019, respectively, excluding amounts in construction in progress. Construction in progress consists primarily of purchased and internally-developed software.

Depreciation expense of property and equipment totaled $21.9 million, $19.7 million and $20.3 million for the years ended December 27, 2020, December 29, 2019 and December 30, 2018, respectively.

Accrued wages and benefits

(in thousands)	December 27, 2020		December 29, 2019
Deferred employer payroll tax	$	55,420	$	—
Other accrued wages and benefits	67,237		67,604
Accrued wages and benefits	$	122,657	$	67,604

On March 27, 2020, the U.S. government enacted the CARES Act, which among other things, provided employer payroll tax credits for wages paid to employees who were unable to work during the COVID-19 outbreak. Additionally, we were allowed to delay payments for the employer portion of social security taxes (6.2% of taxable wages) incurred between March 27, 2020 and December 31, 2020, for both our temporary associates and permanent employees. We anticipate the deferred amount will be paid by September 15, 2021.