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v3.23.2

Accrued expenses and other current liabilities | 6 Months Ended
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Jun. 30, 2023
Payables and Accruals [Abstract] |
Accrued expenses and other current liabilities | 7. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following (in thousands):
| June 30, |  | December 31,
| 2023 |  | 2022
Accrued expenses | $ | 9,539 |  |  | $ | 8,494 |
Indirect tax reserves | 3,914 |  |  | 6,627 |
Indirect tax payables | 7,161 |  |  | 9,137 |
Other current liabilities | 6,552 |  |  | 6,989 |
Accrued expenses and other current liabilities | $ | 27,166 |  |  | $ | 31,247 |
Indirect tax payables relate to amounts collected from customers on behalf of third-party taxing authorities, primarily on sales in the U.S. and in international jurisdictions. Indirect tax payables also include withholding taxes on payments made to the Company’s instructors before remitting these amounts to the taxing authorities. As of June 30, 2023, indirect tax reserves consist of the residual interest payable on the Company’s instructor withholding tax reserves and other indirect tax reserves. Instructor withholding tax reserves— Prior to March 2020, the Company had not obtained appropriate taxpayer identification forms from instructors, nor remitted applicable tax withholding amounts to the U.S. Internal Revenue Service (“IRS”) where required. In accordance with GAAP, the Company recorded a provision for its tax exposure when it was both probable that a liability had been incurred and the amount of the exposure could be reasonably estimated. Beginning in March 2020, the Company began collecting appropriate taxpayer identification forms from its instructors, assessing whether the forms justified a reduced rate of withholding or withholding exemption, and remitting withholding tax payments to the IRS where required. The Company also began reporting payments to its non-U.S. instructors and the IRS annually where required to do so. In 2020, the Company approached the IRS to address the historical tax withholding amounts for instructors and engaged in a voluntary disclosure program. As of June 30, 2023, the Company has filed all outstanding withholding tax returns and has paid the associated tax obligation to the IRS. The estimated interest associated with the reserve is still outstanding. Changes in the estimated amount the Company has determined it will owe are recorded in general and administrative expenses in the accompanying condensed consolidated statements of operations. Estimated interest is recorded in interest income (expense), net in the accompanying condensed consolidated statement of operations. Changes to the instructor withholding tax reserve are as follows (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Balance, beginning of period | $ | 2,572 |  |  | $ | 15,693 |  |  | $ | 2,528 |  |  | $ | 17,036 |
Amounts charged to (released from) expense | 45 |  |  | 157 |  |  | 89 |  |  | (1,186) |
Net payments and settlements | — |  |  | — |  |  | — |  |  | — |
Balance, end of period | $ | 2,617 |  |  | $ | 15,850 |  |  | $ | 2,617 |  |  | $ | 15,850 |

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- Definition The entire disclosure for accounts payable, accrued expenses, and other liabilities that are classified as current at the end of the reporting period. + References No definition available. + Details
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- References No definition available. + Details
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