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Supplemental balance sheet and cash flow information (Tables)
 9 Months Ended
Sep. 30, 2022
Inventories and supplies
Inventories and supplies – Inventories and supplies were comprised of the following:
(in thousands)September 30,
2022		December 31,
2021
Raw materials$7,675 $5,316 
Semi-finished goods7,051 6,708 
Finished goods29,550 21,995 
Supplies6,496 6,041 
Reserves for excess and obsolete items(5,523)(5,132)
Inventories and supplies, net of reserves$45,249 $34,928 

Changes in the reserves for excess and obsolete items were as follows for the nine months ended September 30, 2022 and 2021:

Nine Months Ended
September 30,
(in thousands)20222021
Balance, beginning of year$5,132 $11,748 
Amounts charged to expense2,552 2,884 
Write-offs and other(2,161)(9,136)
Balance, end of period$5,523 $5,496 
Available-for-sale debt securities
Available-for-sale debt securities – Available-for-sale debt securities included within funds held for customers were comprised of the following:
 September 30, 2022
(in thousands)CostGross unrealized gainsGross unrealized lossesFair value
Funds held for customers:(1)
Canadian and provincial government securities$8,975 $— $(1,034)$7,941 
Available-for-sale debt securities$8,975 $— $(1,034)$7,941 

(1) Funds held for customers, as reported on the consolidated balance sheet as of September 30, 2022, also included cash of $147,614.
 December 31, 2021
(in thousands)CostGross unrealized gainsGross unrealized lossesFair value
Funds held for customers:(1)
Canadian and provincial government securities$9,724 $— $(374)$9,350 
Canadian guaranteed investment certificate3,957 — — 3,957 
Available-for-sale debt securities$13,681 $— $(374)$13,307 
 
(1) Funds held for customers, as reported on the consolidated balance sheet as of December 31, 2021, also included cash of $241,488.
Expected maturities of available-for-sale debt securities
Expected maturities of available-for-sale debt securities as of September 30, 2022 were as follows:
(in thousands)Fair value
Due in one year or less$3,415 
Due in two to five years2,819 
Due in six to ten years1,707 
Available-for-sale debt securities$7,941 
Revenue in excess of billings
Revenue in excess of billings – Revenue in excess of billings was comprised of the following:
(in thousands)September 30,
2022		December 31,
2021
Conditional right to receive consideration$24,147 $22,780 
Unconditional right to receive consideration(1)
14,203 7,613 
Revenue in excess of billings$38,350 $30,393 

(1) Represents revenues that are earned but not currently billable under the related contract terms.
Intangibles
Intangibles – Intangibles were comprised of the following:
 September 30, 2022December 31, 2021
(in thousands)Gross carrying amountAccumulated amortizationNet carrying amountGross carrying amountAccumulated amortizationNet carrying amount
Internal-use software$510,141 $(381,456)$128,685 $456,133 $(342,656)$113,477 
Customer lists/relationships501,411 (299,318)202,093 493,495 (255,178)238,317 
Technology-based intangibles98,813 (44,646)54,167 98,813 (38,553)60,260 
Partner relationships74,399 (7,285)67,114 73,095 (2,990)70,105 
Trade names44,185 (25,985)18,200 51,052 (31,277)19,775 
Software to be sold36,900 (31,060)5,840 36,900 (28,110)8,790 
Intangibles$1,265,849 $(789,750)$476,099 $1,209,488 $(698,764)$510,724 
Estimated future amortization expense Based on the intangibles in service as of September 30, 2022, estimated future amortization expense is as follows:
(in thousands)Estimated
amortization
expense
Remainder of 2022$37,168 
2023120,753 
202481,627 
202548,639 
202645,553 
Acquired intangibles
We acquire and develop internal-use software in the normal course of business. We also, at times, purchase customer list and partner relationship assets. The following intangibles were capitalized during the nine months ended September 30, 2022:

(in thousands)AmountWeighted-average amortization period
(in years)
Internal-use software$55,776 3
Customer lists/relationships18,924 6
Partner relationships1,304 2
Acquired intangibles$76,004 4
Goodwill
Goodwill – Changes in goodwill by reportable segment and in total were as follows for the nine months ended September 30, 2022:
(in thousands)PaymentsCloud SolutionsPromotional SolutionsChecksTotal
Balance, December 31, 2021:
    
Goodwill, gross$895,338 $432,984 $252,874 $434,812 $2,016,008 
Accumulated impairment charges— (392,168)(193,699)— (585,867)
Goodwill, net of accumulated impairment charges
895,338 40,816 59,175 434,812 1,430,141 
Measurement-period adjustment (Note 6)1,343 — — — 1,343 
Currency translation adjustment— — (126)— (126)
Balance, September 30, 2022
$896,681 $40,816 $59,049 $434,812 $1,431,358 
Balance, September 30, 2022:
    
Goodwill, gross$896,681 $432,984 $252,748 $434,812 $2,017,225 
Accumulated impairment charges— (392,168)(193,699)— (585,867)
Goodwill, net of accumulated impairment charges$896,681 $40,816 $59,049 $434,812 $1,431,358 
Other non-current assets
Other non-current assets – Other non-current assets were comprised of the following:
(in thousands)September 30,
2022		December 31,
2021
Postretirement benefit plan asset$92,802 $87,019 
Cloud computing arrangement implementation costs70,519 63,806 
Prepaid product discounts48,591 56,527 
Deferred contract acquisition costs(1)
21,671 17,975 
Loans and notes receivable from distributors, net of allowance for credit losses(2)
13,525 20,201 
Other29,102 33,935 
Other non-current assets$276,210 $279,463 

(1) Amortization of deferred contract acquisition costs was $5,872 for the nine months ended September 30, 2022 and $3,366 for the nine months ended September 30, 2021.

(2) Amount includes the non-current portion of loans and notes receivable. The current portion of these receivables is included in other current assets on the consolidated balance sheets and was $992 as of September 30, 2022 and $1,317 as of December 31, 2021.
Loans and notes receivable by credit quality Indicator The following table presents loans and notes receivable from distributors, including the current portion, by credit quality indicator and by year of origination, as of September 30, 2022. There were no write-offs or recoveries recorded during the nine months ended September 30, 2022.
Loans and notes receivable from distributors amortized cost basis by origination year
(in thousands)2020201920182017PriorTotal
Risk rating:
1-2 internal grade$1,172 $443 $4,247 $8,720 $985 $15,567 
3-4 internal grade— 2,599 — — — 2,599 
Loans and notes receivable$1,172 $3,042 $4,247 $8,720 $985 $18,166 
Changes in prepaid product discounts
Changes in prepaid product discounts during the nine months ended September 30, 2022 and 2021 were as follows:
 Nine Months Ended
September 30,
(in thousands)20222021
Balance, beginning of year$56,527 $50,602 
Additions(1)
18,721 24,284 
Amortization(26,258)(23,425)
Other(399)(191)
Balance, end of period$48,591 $51,270 
 (1) Prepaid product discounts are generally accrued upon contract execution. Cash payments for prepaid product discounts were $23,920 for the nine months ended September 30, 2022 and $27,049 for the nine months ended September 30, 2021.
Accrued liabilities
Accrued liabilities – Accrued liabilities were comprised of the following:
(in thousands)September 30,
2022		December 31,
2021
Employee cash bonuses, including sales incentives$38,780 $45,006 
Deferred revenue(1)
36,193 52,645 
Wages and payroll liabilities, including vacation34,679 24,951 
Interest16,021 4,597 
Operating lease liabilities12,672 14,852 
Customer rebates12,140 9,036 
Prepaid product discounts6,568 11,866 
Other60,442 53,879 
Accrued liabilities$217,495 $216,832 
 
(1) $41,222 of the December 31, 2021 amount was recognized as revenue during the nine months ended September 30, 2022.
Supplemental cash flow information
Supplemental cash flow information – The reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents to the consolidated balance sheets was as follows:
(in thousands)September 30,
2022		September 30,
2021
Cash and cash equivalents$45,535 $121,064 
Restricted cash and restricted cash equivalents included in funds held for customers147,614 129,180 
Non-current restricted cash included in other non-current assets2,742 2,860 
Total cash, cash equivalents, restricted cash and restricted cash equivalents$195,891 $253,104 
Trade accounts receivable [Member]  
Allowance for credit losses
Trade accounts receivable – Net trade accounts receivable was comprised of the following:
(in thousands)September 30,
2022		December 31,
2021
Trade accounts receivable – gross$198,685 $202,077 
Allowance for credit losses(3,534)(4,130)
Trade accounts receivable – net(1)
$195,151 $197,947 

(1) Includes unbilled receivables of $51,941 as of September 30, 2022 and $47,420 as of December 31, 2021.
Changes in the allowance for credit losses for the nine months ended September 30, 2022 and 2021 were as follows:
Nine Months Ended
September 30,
(in thousands)20222021
Balance, beginning of year$4,130 $6,428 
Bad debt expense (benefit)2,410 (412)
Write-offs and other(3,006)(2,555)
Balance, end of period$3,534 $3,461 
Loans and notes receivable [Member]  
Allowance for credit losses
Changes in the allowance for credit losses related to loans and notes receivable from distributors were as follows for the nine months ended September 30, 2022 and 2021:
Nine Months Ended
September 30,
(in thousands)20222021
Balance, beginning of year$2,830 $3,995 
Bad debt expense (benefit)1,221 (1,158)
Other(402)— 
Balance, end of period$3,649 $2,837