Other Balance Sheet Items

12 Months Ended

Dec. 31, 2024

Balance Sheet Related Disclosures [Abstract]

Details of Certain Balance Sheet Accounts Disclosure Block

Note 3. Selected Balance Sheet Items

Other Current Assets

Other current assets consist of the following:


	As of December 31,
	2024		2023
	(In millions)
Prepaid expenses	$	30.8	$	23.3
Prepaid registry fees	24.3		23.8
Accounts receivable, net	5.6		6.3
Taxes receivable	2.2		7.3
Other	1.0		1.2
Total other current assets	$	63.9	$	61.9

Property and Equipment, Net

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


	As of December 31,
	2024		2023
	(In millions)
Computer equipment and software	$	418.7	$	409.0
Buildings and building improvements	264.8		261.3
Land	37.9		37.9
Office equipment and furniture	11.1		11.0
Capital work in progress	16.9		16.1
Leasehold improvements	1.6		1.6
Total cost	751.0		736.9
Less: accumulated depreciation	(526.5)		(503.7)
Total property and equipment, net	$	224.5	$	233.2

Substantially all of the Company’s property and equipment were held in the U.S. for both periods presented.

Goodwill

The following table presents the detail of goodwill:


	As of December 31,
	2024		2023
	(In millions)
Goodwill, gross	$	1,537.8	$	1,537.8
Accumulated goodwill impairment	(1,485.3)		(1,485.3)
Total goodwill	$	52.5	$	52.5

There was no impairment of goodwill or other long-lived assets recognized in any of the periods presented.

Deposits to Acquire Intangible Assets

The Company’s Deposits to acquire intangible assets represents the $145.0 million paid for the future assignment to the Company of contractual rights to the .web gTLD, pending resolution of objections by other applicants, and approval from ICANN.

Other Long-Term Assets

Other long-term assets consist of the following:


	As of December 31,
	2024		2023
	(In millions)
Long-term prepaid expenses	$	13.5	$	4.8
Operating lease right-of-use asset	9.3		7.4
Long-term prepaid registry fees	8.2		8.3
Restricted cash	5.4		5.4
Other	3.0		3.1
Total other long-term assets	$	39.4	$	29.0

Long-term prepaid expenses as of December 31, 2024 reflect longer-term contracts for software licenses and maintenance entered into during 2024. The prepaid registry fees in the tables above primarily 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. The amount of prepaid registry fees as of December 31, 2024 reflects amortization of $39.5 million during 2024 which was recorded in Cost of Revenues.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of the following:


	As of December 31,
	2024		2023
	(In millions)
Accounts payable and accrued expenses	$	10.6	$	12.5
Accrued employee compensation	66.9		61.2
Taxes payable	65.8		49.5
Customer deposits	64.6		77.2
Interest payable	19.5		19.5
Accrued registry fees	12.6		12.3
Customer incentives payable	8.9		6.5
Current operating lease liabilities	5.2		5.1
Foreign currency forward contracts	1.1		10.7
Other accrued liabilities	2.6		2.9
Total accounts payable and accrued liabilities	$	257.8	$	257.4

Accrued employee compensation primarily consists of liabilities for employee leave, salaries, payroll taxes, employee contributions to the employee stock purchase plan, and incentive compensation. Customer deposits varies from period to period due to the timing of payments from certain large customers. Taxes payable reflects amounts accrued for the income tax provision and payments made during the year. This balance fluctuates from period to period due to the timing of income tax payments in the Company’s major tax jurisdictions. The liability related to the unrealized loss on foreign currency forward contracts as of December 31, 2023 was remeasured and paid upon settlement of the forward contract in 2024.

Long-term Tax and Other Liabilities

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


	As of December 31,
	2024		2023
	(In millions)
Long-term tax liabilities	$	6.1	$	34.1
Long-term operating lease liabilities	4.0		2.2
Long-term tax and other liabilities	$	10.1	$	36.3

Long-term tax liabilities as of December 31, 2024 reflects a $24.3 million reclassification to current liabilities of the final installment of the transition tax liability on accumulated foreign earnings resulting from the 2017 Tax Cuts and Jobs Act.