Other Balance Sheet Items

6 Months Ended

Jun. 30, 2019

Balance Sheet Related Disclosures [Abstract]

Other Current Assets

Other current assets consist of the following:



	June 30,		December 31,
	2019		2018
	(In thousands)
Prepaid registry fees	$	21,739	$	20,696
Prepaid expenses	22,367		14,109
Contingent consideration receivable	14,721		—
Accounts receivable, net	5,257		6,029
Income taxes receivable	4,656		4,451
Other	1,700		2,080
Total other current assets	$	70,440	$	47,365

Other Long-Term Assets

Other long-term assets consist of the following:



	June 30,		December 31,
	2019		2018
	(In thousands)
Restricted cash	$	9,374	$	9,338
Operating lease right-of-use asset	9,139		—
Long-term prepaid registry fees	7,884		7,779
Other tax receivable	5,673		5,673
Contingent consideration receivable	—		14,721
Other	4,182		3,535
Total other long-term assets	$	36,252	$	41,046

As a result of the adoption of ASC 842, Leases, in 2019, the Company recorded right-of-use assets for operating leases of $9.1 million as of June 30, 2019. The current and long-term prepaid registry fees in the tables above relate to the fees the Company pays to ICANN for each annual increment of .com domain name registrations and renewals which are deferred and amortized over the domain name registration term. The amount of prepaid registry fees as of June 30, 2019 reflects amortization of $8.6 million and $17.1 million during the three and six months ended June 30, 2019 which was recorded in Cost of Revenues.

The contingent consideration receivable in the tables above related to the estimated amount due from Neustar, Inc. (“Neustar”) in the first quarter of 2020, was reclassified from Other long-term assets as of December 31, 2018 to Other current assets as of June 30, 2019.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of the following:



	June 30,		December 31,
	2019		2018
	(In thousands)
Accounts payable	$	8,018	$	10,445
Customer deposits, net	51,343		57,025
Accrued employee compensation	34,578		54,746
Interest payable	24,469		24,318
Accrued registry fees	12,834		11,029
Taxes payable and other tax liabilities	12,073		18,961
Payables to buyer	3,623		9,875
Current operating lease liability	3,880		—
Other accrued liabilities	20,397		28,809
Total accounts payable and accrued liabilities	$	171,215	$	215,208

Customer deposits primarily relate to advance payments to cover domain name registration activity by registrars. The balance of customer deposits can fluctuate significantly due to the timing of payments from 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, 2018, was paid during the six months ended June 30, 2019. Interest payable varies at each period-end based on the payment due dates for each Senior Note issuance. Payables to buyer relate to amounts due to Neustar for estimated collections from Security Services customers of any billings after the closing date and until the customer contracts are assigned to Neustar. Other liabilities include amounts payable to registrars related to rebates and marketing programs as well as other miscellaneous liabilities. These amounts may vary from period to period due to the timing of payments.

Long-term tax and other liabilities



	June 30,		December 31,
	2019		2018
	(In thousands)
Long-term tax liabilities	$	302,692	$	281,621
Long-term operating lease liability	5,243		—
Long-term tax and other liabilities	$	307,935	$	281,621

Long-term tax liabilities as of June 30, 2019 reflects the reclassification of unrecognized tax benefits during the six months ended June 30, 2019, as deferred tax assets related to tax credits and loss carryforwards are no longer available to offset the liabilities. This was partially offset by a $7.9 million reclassification of a portion of the transition tax liability on accumulated foreign earnings from non-current to current as of June 30, 2019. The current and long-term lease liabilities as of June 30, 2019 in the tables above relate to the lease obligations recorded as a result of the adoption of ASC 842, Leases, during 2019.