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SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2022
Inventories and supplies Inventories and supplies were comprised of the following at December 31:
(in thousands)20222021
Raw materials$11,563 $5,316 
Semi-finished goods7,777 6,708 
Finished goods32,938 21,995 
Supplies6,389 6,041 
Reserve for excess and obsolete items(6,400)(5,132)
Inventories and supplies, net of reserves$52,267 $34,928 
Changes in the reserve for excess and obsolete items for the years ended December 31 were as follows:
(in thousands)202220212020
Balance, beginning of year$5,132 $11,748 $6,600 
Amounts charged to expense2,940 3,513 6,713 
Write-offs and sales(1,672)(10,129)(1,565)
Balance, end of year$6,400 $5,132 $11,748 
Available-for-sale debt securities Available-for-sale debt securities were comprised of the following:
 December 31, 2022
(in thousands)CostGross unrealized gainsGross unrealized lossesFair value
Cash equivalents:
Domestic money market fund$5,000 $— $— $5,000 
Funds held for customers:(1)
Canadian and provincial government securities9,190 — (1,064)8,126 
Available-for-sale debt securities$14,190 $— $(1,064)$13,126 

(1) Funds held for customers, as reported on the consolidated balance sheet as of December 31, 2022, also included cash of $294,165.
 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 December 31, 2022 were as follows:
(in thousands)Fair value
Due in one year or less$7,673 
Due in two to five years2,162 
Due in six to ten years3,291 
Available-for-sale debt securities$13,126 
Revenue in excess of billings Revenue in excess of billings was comprised of the following at December 31:
(in thousands)20222021
Conditional right to receive consideration$26,520 $22,780 
Unconditional right to receive consideration(1)
12,241 7,613 
Revenue in excess of billings$38,761 $30,393 

(1) Represents revenues that are earned but not currently billable under the related contract terms.
Property, plant and equipment Property, plant and equipment was comprised of the following at December 31:
20222021
(in thousands)Gross carrying amountAccumulated depreciationNet carrying amountGross carrying amountAccumulated depreciationNet carrying amount
Machinery and equipment$378,468 $(307,838)$70,630 $333,383 $(276,914)$56,469 
Buildings and improvements111,916 (67,936)43,980 118,219 (58,202)60,017 
Land and improvements14,498 (4,214)10,284 12,981 (3,501)9,480 
Property, plant and equipment
$504,882 $(379,988)$124,894 $464,583 $(338,617)$125,966 
Intangibles Amortizable intangibles were comprised of the following at December 31:
 20222021
(in thousands)Gross carrying amountAccumulated amortizationNet carrying amountGross carrying amountAccumulated amortizationNet carrying amount
Internal-use software$529,306 $(395,514)$133,792 $456,133 $(342,656)$113,477 
Customer lists/relationships497,882 (312,986)184,896 493,495 (255,178)238,317 
Technology-based intangibles99,613 (47,478)52,135 98,813 (38,553)60,260 
Partner relationships74,682 (9,094)65,588 73,095 (2,990)70,105 
Trade names44,185 (26,510)17,675 51,052 (31,277)19,775 
Software to be sold36,900 (32,007)4,893 36,900 (28,110)8,790 
Intangibles$1,282,568 $(823,589)$458,979 $1,209,488 $(698,764)$510,724 
Amortization of intangibles
Amortization expense related to intangibles was as follows for the years ended December 31:
(in thousands)202220212020
Customer lists/relationships$70,712 $61,805 $41,377 
Internal-use software54,925 41,601 36,771 
Technology-based intangibles8,925 10,940 6,291 
Partner relationships6,104 2,990 — 
Software to be sold3,897 4,226 4,227 
Trade names1,992 1,580 1,884 
Amortization of intangibles$146,555 $123,142 $90,550 
Estimated amortization expense
Based on the intangibles in service as of December 31, 2022, estimated amortization expense for each of the next five years ending December 31 is as follows:
(in thousands)Estimated
amortization
expense
2023$131,216 
202491,800 
202562,150 
202640,686 
202732,413 
Acquired intangibles
We acquire internal-use software and certain partner relationships in the normal course of business. We also purchased customer lists, and we acquired other intangible assets in conjunction with an acquisition (Note 6). The following intangible assets were acquired during the years ended December 31:
202220212020
(in thousands)Amount
Weighted-average amortization period
(in years)
Amount
Weighted-average amortization period
(in years)
Amount
Weighted-average amortization period
(in years)
Internal-use software$74,778 3$75,918 3$39,344 4
Customer lists/relationships(1)
18,267 6149,642 845,470 7
Partner relationships1,587 373,095 15— —
Technology-based intangibles— —65,000 8— —
Trade names— —21,000 10— —
Acquired intangibles$94,632 4$384,655 8$84,814 6

(1) We acquired customer lists that did not qualify as business combinations of $18,267 during 2022, $22,642 during 2021 and $45,470 during 2020.
Goodwill Changes in goodwill by reportable business segment and in total were as follows:
(in thousands)PaymentsData SolutionsPromotional SolutionsChecksTotal
Balance, December 31, 2020:
Goodwill, gross$168,165 $432,984 $252,864 $434,812 $1,288,825 
Accumulated impairment charges— (392,168)(193,699)— (585,867)
Goodwill, net of accumulated impairment charges168,165 40,816 59,165 434,812 702,958 
Goodwill resulting from acquisition (Note 6)
727,173 — — — 727,173 
Currency translation adjustment— — 10 — 10 
Balance, December 31, 2021
$895,338 $40,816 $59,175 $434,812 $1,430,141 
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 charges895,338 40,816 59,175 434,812 1,430,141 
Measurement-period adjustment (Note 6)
1,343 — — — 1,343 
Currency translation adjustment— — (99)— (99)
Balance, December 31, 2022
$896,681 $40,816 $59,076 $434,812 $1,431,385 
Balance, December 31, 2022:
Goodwill, gross$896,681 $432,984 $252,775 $434,812 $2,017,252 
Accumulated impairment charges— (392,168)(193,699)— (585,867)
Goodwill, net of accumulated impairment charges$896,681 $40,816 $59,076 $434,812 $1,431,385 
Other non-current assets Other non-current assets were comprised of the following at December 31:
(in thousands)20222021
Postretirement benefit plan asset (Note 12)$79,343 $87,019 
Cloud computing arrangement implementation costs71,547 63,806 
Prepaid product discounts44,824 56,527 
Deferred contract acquisition costs(1)
21,300 17,975 
Loans and notes receivable from distributors, net of allowance for credit losses(2)
13,259 20,201 
Other30,081 33,935 
Other non-current assets$260,354 $279,463 

(1) Amortization of deferred contract acquisition costs was $8,206 for 2022, $4,975 for 2021 and $3,739 for 2020.

(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 $961 as of December 31, 2022 and $1,317 as of December 31, 2021.
Changes in prepaid product discounts
Changes in prepaid product discounts were as follows for the years ended December 31:
(in thousands)202220212020
Balance, beginning of year$56,527 $50,602 $51,145 
Additions(1)
23,014 37,882 30,346 
Amortization(34,400)(31,784)(29,235)
Other(317)(173)(1,654)
Balance, end of year$44,824 $56,527 $50,602 
 
(1) Prepaid product discounts are generally accrued upon contract execution. Cash payments made for prepaid product discounts were $30,603 for 2022, $40,920 for 2021 and $33,613 for 2020.
Loans and notes receivable by credit quality indicator and year of origination
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 December 31, 2022. Write-offs of $2,599 for the year ended December 31, 2022 related to loans and notes receivable originated in 2019.

Loans and notes receivable from distributors amortized cost basis by origination year
(in thousands)202020192018PriorTotal
Risk rating:
1-2 internal grade$1,142 $429 $4,128 $9,545 $15,244 
3-4 internal grade— — — — — 
Loans and notes receivable$1,142 $429 $4,128 $9,545 $15,244 
Accrued liabilities Accrued liabilities were comprised of the following at December 31:
(in thousands)20222021
Deferred revenue(1)
$47,012 $52,645 
Employee cash bonuses, including sales incentives57,398 45,006 
Wages and payroll liabilities, including vacation20,264 24,951 
Operating lease liabilities (Note 14)12,780 14,852 
Customer rebates12,153 9,036 
Prepaid product discounts due within one year4,179 11,866 
Other64,618 58,476 
Accrued liabilities$218,404 $216,832 

(1) Revenue recognized from amounts included in deferred revenue at the beginning of the period was $47,547 for 2022, $39,366 for 2021 and $42,108 for 2020.
Supplemental cash flow information Supplemental cash flow information was as follows for the years ended December 31:
(in thousands)202220212020
Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents to the consolidated balance sheets:
Cash and cash equivalents$40,435 $41,231 $123,122 
Restricted cash and restricted cash equivalents included in funds held for customers
294,165 241,488 106,287 
Non-current restricted cash included in other non-current assets2,815 2,772 — 
Total cash, cash equivalents, restricted cash and restricted cash equivalents
$337,415 $285,491 $229,409 
Interest paid$87,108 $46,621 $22,853 
Income taxes paid38,629 18,761 24,701 
Non-cash investing activities:
Non-cash consideration for customer list purchases(1)
$5,096 $15,528 $21,439 
Non-cash financing activities:
Liabilities for holdback payments on asset purchases$8,609 $4,121 $12,949 
Vesting of restricted stock unit awards13,602 16,646 7,839 

(1) Consists of pre-acquisition amounts owed to us by the sellers.

Information regarding operating and finance leases executed in each period can be found in Note 14.
Trade accounts receivable [Member]  
Allowance for credit losses Net trade accounts receivable was comprised of the following at December 31:
(in thousands)20222021
Trade accounts receivable – gross$210,799 $202,077 
Allowance for credit losses(4,182)(4,130)
Trade accounts receivable – net(1)
$206,617 $197,947 

(1) Includes unbilled receivables of $43,902 as of December 31, 2022 and $47,420 as of December 31, 2021.

Changes in the allowance for credit losses for the years ended December 31 were as follows:
(in thousands)202220212020
Balance, beginning of year$4,130 $6,428 $4,985 
Bad debt expense4,185 223 5,003 
Write-offs and other(4,133)(2,521)(3,560)
Balance, end of year$4,182 $4,130 $6,428 
Notes receivable [Member]  
Allowance for credit losses
Changes in the allowance for credit losses related to loans and notes receivable from distributors for the years ended December 31 were as follows:

(in thousands)202220212020
Balance, beginning of year$2,830 $3,995 $284 
Adoption of ASU No. 2016-13— — 4,749 
Bad debt expense (benefit)1,195 (1,165)5,412 
Exchange for customer lists(402)— (6,402)
Write-offs(2,599)— (48)
Balance, end of year$1,024 $2,830 $3,995