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Supplemental balance sheet and cash flow information (Tables)
 3 Months Ended
Mar. 31, 2023
Inventories and supplies
Inventories and supplies – Inventories and supplies were comprised of the following:
(in thousands)March 31,
2023		December 31,
2022
Raw materials$11,326 $11,563 
Semi-finished goods5,973 7,777 
Finished goods37,240 32,938 
Supplies6,866 6,389 
Reserve for excess and obsolete items(7,482)(6,400)
Inventories and supplies, net of reserve$53,923 $52,267 

Changes in the reserve for excess and obsolete items were as follows for the quarters ended March 31, 2023 and 2022:

Quarter Ended
March 31,
(in thousands)20232022
Balance, beginning of year$6,400 $5,132 
Amounts charged to expense1,334 773 
Write-offs and other(252)(526)
Balance, end of period$7,482 $5,379 
Available-for-sale debt securities
Available-for-sale debt securities – Available-for-sale debt securities were comprised of the following:
 March 31, 2023
(in thousands)CostGross unrealized gainsGross unrealized lossesFair value
Funds held for customers:(1)
Canadian and provincial government securities$9,269 $— $(899)$8,370 
Available-for-sale debt securities$9,269 $— $(899)$8,370 

(1) Funds held for customers, as reported on the consolidated balance sheet as of March 31, 2023, also included cash of $149,010.
 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.
Expected maturities of available-for-sale debt securities
Expected maturities of available-for-sale debt securities as of March 31, 2023 were as follows:
(in thousands)Fair value
Due in one year or less$2,888 
Due in two to five years2,461 
Due in six to ten years3,021 
Available-for-sale debt securities$8,370 
Revenue in excess of billings
Revenue in excess of billings – Revenue in excess of billings was comprised of the following:
(in thousands)March 31,
2023		December 31,
2022
Conditional right to receive consideration$20,928 $26,520 
Unconditional right to receive consideration(1)
15,004 12,241 
Revenue in excess of billings$35,932 $38,761 

(1) Represents revenues that are earned but not currently billable under the related contract terms.
Intangibles
Intangibles – Intangibles were comprised of the following:
 March 31, 2023December 31, 2022
(in thousands)Gross carrying amountAccumulated amortizationNet carrying amountGross carrying amountAccumulated amortizationNet carrying amount
Internal-use software$497,102 $(365,240)$131,862 $529,306 $(395,514)$133,792 
Customer lists/relationships491,951 (323,960)167,991 497,882 (312,986)184,896 
Technology-based intangibles97,633 (47,529)50,104 99,613 (47,478)52,135 
Partner relationships73,930 (9,411)64,519 74,682 (9,094)65,588 
Trade names39,367 (22,217)17,150 44,185 (26,510)17,675 
Software to be sold36,900 (32,954)3,946 36,900 (32,007)4,893 
Intangibles$1,236,883 $(801,311)$435,572 $1,282,568 $(823,589)$458,979 
Estimated future amortization expense Based on the intangibles in service as of March 31, 2023, estimated future amortization expense is as follows:
(in thousands)Estimated
amortization
expense
Remainder of 2023$97,717 
202496,138 
202566,435 
202642,050 
202732,746 
Acquired intangibles The following intangibles were capitalized during the quarter ended March 31, 2023:
(in thousands)AmountWeighted-average amortization period
(in years)
Internal-use software$16,918 3
Partner relationships274 1
Acquired intangibles$17,192 3
Goodwill
Goodwill – Changes in goodwill by reportable segment and in total were as follows for the quarter ended March 31, 2023:
(in thousands)PaymentsData SolutionsPromotional SolutionsChecksTotal
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 
Currency translation adjustment and other(828)— 4 — (824)
Balance, March 31, 2023
$895,853 $40,816 $59,080 $434,812 $1,430,561 
Balance, March 31, 2023:
    
Goodwill, gross$895,853 $432,984 $252,779 $434,812 $2,016,428 
Accumulated impairment charges— (392,168)(193,699)— (585,867)
Goodwill, net of accumulated impairment charges$895,853 $40,816 $59,080 $434,812 $1,430,561 
Other non-current assets
Other non-current assets – Other non-current assets were comprised of the following:
(in thousands)March 31,
2023		December 31,
2022
Postretirement benefit plan asset$81,424 $79,343 
Cloud computing arrangement implementation costs69,279 71,547 
Prepaid product discounts48,106 44,824 
Deferred contract acquisition costs(1)
22,645 21,300 
Assets held for sale(2)
13,355 — 
Loans and notes receivable from distributors, net of allowance for credit losses(3)
12,959 13,259 
Other24,987 30,081 
Other non-current assets$272,755 $260,354 

(1) Amortization of deferred contract acquisition costs was $2,367 for the quarter ended March 31, 2023 and $1,756 for the quarter ended March 31, 2022.

(2) Amount includes the non-current assets of our North American web hosting and logo design businesses that were held for sale as of March 31, 2023 (Note 6).

(3) 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 March 31, 2023 and $961 as of December 31, 2022.
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 March 31, 2023. There were no write-offs or recoveries recorded during the quarter ended March 31, 2023.
Loans and notes receivable from distributors amortized cost basis by origination year
(in thousands)202020192018PriorTotal
Risk rating:
1-2 internal grade$1,104 $415 $4,008 $9,420 $14,947 
3-4 internal grade— — — — — 
Loans and notes receivable$1,104 $415 $4,008 $9,420 $14,947 
Changes in prepaid product discounts
Changes in prepaid product discounts during the quarters ended March 31, 2023 and 2022 were as follows:
 Quarter Ended
March 31,
(in thousands)20232022
Balance, beginning of year$44,824 $56,527 
Additions(1)
11,784 4,229 
Amortization(8,513)(8,924)
Other11 53 
Balance, end of period$48,106 $51,885 
 (1) Prepaid product discounts are generally accrued upon contract execution. Payments for prepaid product discounts were $7,383 for the quarter ended March 31, 2023 and $7,859 for the quarter ended March 31, 2022.
Accrued liabilities
Accrued liabilities – Accrued liabilities were comprised of the following:
(in thousands)March 31,
2023		December 31,
2022
Deferred revenue(1)
$48,526 $47,012 
Employee bonuses, including sales incentives17,161 57,398 
Interest16,415 7,314 
Operating lease liabilities14,259 12,780 
Wages and payroll liabilities, including vacation12,095 20,264 
Customer rebates10,059 12,153 
Prepaid product discounts8,580 4,179 
Other58,613 57,304 
Accrued liabilities$185,708 $218,404 
 
(1) Revenue recognized for amounts included in deferred revenue at the beginning of the period was $18,683 for the quarter ended March 31, 2023 and $20,238 for the quarter ended March 31, 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)March 31,
2023		March 31,
2022
Cash and cash equivalents$24,622 $44,059 
Restricted cash and restricted cash equivalents included in funds held for customers149,010 143,725 
Cash and cash equivalents included in other current assets(1)
7,325 400 
Non-current restricted cash included in other non-current assets2,592 2,595 
Total cash, cash equivalents, restricted cash and restricted cash equivalents$183,549 $190,779 
Non-cash investing activities:
Investment in joint venture(2)
$18,392 $— 

(1) Represents the cash and cash equivalents of businesses held for sale as of each date. Our North American web hosting and logo design businesses were classified as held for sale as of March 31, 2023 (Note 6) and our Australian web hosting business was classified as held for sale as of March 31, 2022.

(2) In February 2023, we entered into a joint venture focused on launching and marketing a business payment distribution technology platform. We are committed to invest $20,000 over the next 3 years and we have option rights to acquire additional non-controlling ownership interests. During the quarter ended March 31, 2023, we recorded $18,392 for our investment in the joint venture and option rights.
Trade accounts receivable [Member]  
Allowance for credit losses
Trade accounts receivable – Net trade accounts receivable was comprised of the following:
(in thousands)March 31,
2023		December 31,
2022
Trade accounts receivable – gross$226,718 $210,799 
Allowance for credit losses(4,824)(4,182)
Trade accounts receivable – net(1)
$221,894 $206,617 

(1) Includes unbilled receivables of $54,336 as of March 31, 2023 and $43,902 as of December 31, 2022.
Changes in the allowance for credit losses for the quarters ended March 31, 2023 and 2022 were as follows:
Quarter Ended
March 31,
(in thousands)20232022
Balance, beginning of year$4,182 $4,130 
Bad debt expense1,466 625 
Write-offs and other(824)(556)
Balance, end of period$4,824 $4,199 
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 quarters ended March 31, 2023 and 2022:
Quarter Ended
March 31,
(in thousands)20232022
Balance, beginning of year$1,024 $2,830 
Bad debt (benefit) expense(28)81 
Other— (402)
Balance, end of period$996 $2,509