Supplemental Disclosures of Cash Flow Information and Non-Cash Financing and Investing Activities

9 Months Ended

Sep. 30, 2022

Supplemental Cash Flow Elements [Abstract]

Supplemental Disclosures of Cash Flow Information and Non-Cash Financing and Investing Activities

NOTE 10 Supplemental Disclosures of Cash Flow Information and Non-Cash Financing and Investing Activities

Throughout 2020, the Company deferred $31.1 million in employer-only payroll tax payments as allowed under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES” Act), which was signed into law on March 27, 2020. During the first nine months of 2022, there were no additional deferrals under the CARES Act. A payment of the cumulative deferred employer payroll taxes as of December 31, 2020 was paid in December 2021 and a second payment of $15.6 million is planned for December 31, 2022, as permitted under the CARES Act.

During the second quarter of 2021, the Company received an $8.1 million reimbursement for capitalizable costs of public infrastructure improvements related to the construction of the Company’s headquarters in accordance with an economic development grant agreement between the Company and the City of Daytona Beach and Volusia County. The reimbursement has been reflected as a reduction to the additions to fixed asset line item on the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2021.

During the nine months ended September 30, 2022, the Company had an impact of $183.1 million on foreign exchange rate changes on cash and cash equivalents inclusive of fiduciary cash reported on its Condensed Consolidated Statements of Cash Flows which is primarily due to the decrease in currency exchange rates for British pounds and an additional smaller loss from the decline in currency exchange rates related to euro and Canadian dollar.

Cash paid during the period for interest and income taxes are summarized as follows:

	Nine months ended September 30,
(in millions)	2022		2021
Cash paid during the period for:
Interest	$	103.3	$	59.7
Income taxes, net of refunds	$	118.2	$	103.9

Significant non-cash investing and financing activities are summarized as follows:

	Nine months ended September 30,
(in millions)	2022		2021
Other payables issued for agency acquisitions and purchased customer accounts	$	4.6	$	3.5
Estimated acquisition earn-out payables issued for agency acquisitions	$	42.1	$	25.1
Assumed acquisition earn-out payables	$	34.8	$	—
Contingent payable issued for agency acquisition	$	—	$	24.1
Common stock issued for agency acquisition	$	14.7	$	4.9
Notes payable assumed for agency acquisition	$	1.8	$	1.3

The Company's restricted cash balance is composed of funds held in separate premium trust accounts as required by state law or, in some cases, by agreement with carrier partners. The following is a reconciliation of cash and cash equivalents inclusive of restricted cash as of September 30, 2022 and 2021.

(in millions)	September 30, 2022		December 31, 2021
Table to reconcile restricted and non-restricted fiduciary cash
Restricted fiduciary cash	$	1,113.0	$	583.2
Non-restricted fiduciary cash		158.3		193.8
Total restricted and non-restricted fiduciary cash at the end of the period	$	1,271.3	$	777.0

The Company's fiduciary cash increased as of September 30, 2022 compared to December 31, 2021 primarily due to businesses acquired during 2022.

	Balance as of September 30,
(in millions)	2022		2021
Table to reconcile cash, cash equivalents and fiduciary cash
Cash and cash equivalents	$	579.5	$	784.6
Fiduciary cash		1,271.3		641.3
Total cash, cash equivalents and fiduciary cash at the end of the period	$	1,850.8	$	1,425.9