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Supplemental balance sheet and cash flow information (Tables)
 6 Months Ended
Jun. 30, 2023
Inventories and supplies
Inventories and supplies – Inventories and supplies were comprised of the following:
(in thousands)June 30,
2023		December 31,
2022
Raw materials$12,028 $11,563 
Semi-finished goods6,098 7,777 
Finished goods37,836 32,938 
Supplies7,062 6,389 
Reserve for excess and obsolete items(8,125)(6,400)
Inventories and supplies, net of reserve$54,899 $52,267 

Changes in the reserve for excess and obsolete items were as follows for the six months ended June 30, 2023 and 2022:

Six Months Ended
June 30,
(in thousands)20232022
Balance, beginning of year$6,400 $5,132 
Amounts charged to expense2,151 1,516 
Write-offs and other(426)(1,211)
Balance, end of period$8,125 $5,437 
Available-for-sale debt securities
Available-for-sale debt securities – Available-for-sale debt securities were comprised of the following:
 June 30, 2023
(in thousands)CostGross unrealized gainsGross unrealized lossesFair value
Funds held for customers:(1)
Canadian and provincial government securities$9,499 $— $(1,097)$8,402 
Available-for-sale debt securities$9,499 $— $(1,097)$8,402 

(1) Funds held for customers, as reported on the consolidated balance sheet as of June 30, 2023, also included cash of $147,392.
 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 June 30, 2023 were as follows:
(in thousands)Fair value
Due in one year or less$3,394 
Due in two to five years1,723 
Due in six to ten years3,285 
Available-for-sale debt securities$8,402 
Revenue in excess of billings
Revenue in excess of billings – Revenue in excess of billings was comprised of the following:
(in thousands)June 30,
2023		December 31,
2022
Conditional right to receive consideration$24,608 $26,520 
Unconditional right to receive consideration(1)
12,628 12,241 
Revenue in excess of billings$37,236 $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:
 June 30, 2023December 31, 2022
(in thousands)Gross carrying amountAccumulated amortizationNet carrying amountGross carrying amountAccumulated amortizationNet carrying amount
Internal-use software$526,697 $(379,518)$147,179 $529,306 $(395,514)$133,792 
Customer lists/relationships487,127 (335,245)151,882 497,882 (312,986)184,896 
Technology-based intangibles97,633 (49,560)48,073 99,613 (47,478)52,135 
Partner relationships74,134 (10,790)63,344 74,682 (9,094)65,588 
Trade names39,367 (22,742)16,625 44,185 (26,510)17,675 
Software to be sold36,900 (33,900)3,000 36,900 (32,007)4,893 
Intangibles$1,261,858 $(831,755)$430,103 $1,282,568 $(823,589)$458,979 
Estimated future amortization expense Based on the intangibles in service as of June 30, 2023, estimated future amortization expense is as follows:
(in thousands)Estimated
amortization
expense
Remainder of 2023$65,253 
202495,983 
202567,446 
202642,837 
202733,036 
Acquired intangibles The following intangibles were capitalized during the six months ended June 30, 2023:
(in thousands)AmountWeighted-average amortization period
(in years)
Internal-use software$48,829 3
Partner relationships478 1
Acquired intangibles$49,307 3
Goodwill
Goodwill – Changes in goodwill by reportable segment and in total were as follows for the six months ended June 30, 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)— 31 — (797)
Balance, June 30, 2023
$895,853 $40,816 $59,107 $434,812 $1,430,588 
Balance, June 30, 2023:
    
Goodwill, gross$895,853 $432,984 $252,806 $434,812 $2,016,455 
Accumulated impairment charges— (392,168)(193,699)— (585,867)
Goodwill, net of accumulated impairment charges$895,853 $40,816 $59,107 $434,812 $1,430,588 
Other non-current assets
Other non-current assets – Other non-current assets were comprised of the following:
(in thousands)June 30,
2023		December 31,
2022
Postretirement benefit plan asset$82,834 $79,343 
Cloud computing arrangement implementation costs67,270 71,547 
Prepaid product discounts46,321 44,824 
Deferred contract acquisition costs(1)
24,906 21,300 
Loans and notes receivable from distributors, net of allowance for credit losses(2)
12,782 13,259 
Other32,290 30,081 
Other non-current assets$266,403 $260,354 

(1) Amortization of deferred contract acquisition costs was $5,315 for the six months ended June 30, 2023 and $3,767 for the six months ended June 30, 2022.

(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 $970 as of June 30, 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 June 30, 2023. There were no write-offs or recoveries recorded during the six months ended June 30, 2023.

Loans and notes receivable from distributors amortized cost basis by origination year
(in thousands)202020192018PriorTotal
Risk rating:
1-2 internal grade$1,076 $400 $3,886 $9,341 $14,703 
3-4 internal grade— — — — — 
Loans and notes receivable$1,076 $400 $3,886 $9,341 $14,703 
Changes in prepaid product discounts
Changes in prepaid product discounts during the six months ended June 30, 2023 and 2022 were as follows:
 Six Months Ended
June 30,
(in thousands)20232022
Balance, beginning of year$44,824 $56,527 
Additions(1)
18,584 9,413 
Amortization(17,173)(17,171)
Other86 (86)
Balance, end of period$46,321 $48,683 
 (1) Prepaid product discounts are generally accrued upon contract execution. Payments for prepaid product discounts were $12,742 for the six months ended June 30, 2023 and $12,285 for the six months ended June 30, 2022.
Accrued liabilities
Accrued liabilities – Accrued liabilities were comprised of the following:
(in thousands)June 30,
2023		December 31,
2022
Employee bonuses, including sales incentives$30,573 $57,398 
Deferred revenue(1)
29,204 47,012 
Operating lease liabilities13,764 12,780 
Customer rebates12,104 12,153 
Prepaid product discounts10,022 4,179 
Wages and payroll liabilities, including vacation9,460 20,264 
Other50,068 64,618 
Accrued liabilities$155,195 $218,404 
 
(1) Revenue recognized for amounts included in deferred revenue at the beginning of the period was $29,637 for the six months ended June 30, 2023 and $20,238 for the six months ended June 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)June 30,
2023		June 30,
2022
Cash and cash equivalents$39,052 $43,262 
Restricted cash and restricted cash equivalents included in funds held for customers147,392 143,702 
Non-current restricted cash included in other non-current assets2,749 2,624 
Total cash, cash equivalents, restricted cash and restricted cash equivalents$189,193 $189,588 
Trade accounts receivable [Member]  
Allowance for credit losses
Trade accounts receivable – Net trade accounts receivable was comprised of the following:
(in thousands)June 30,
2023		December 31,
2022
Trade accounts receivable – gross$217,705 $210,799 
Allowance for credit losses(5,438)(4,182)
Trade accounts receivable – net(1)
$212,267 $206,617 

(1) Includes unbilled receivables of $54,882 as of June 30, 2023 and $43,902 as of December 31, 2022.
Changes in the allowance for credit losses for the six months ended June 30, 2023 and 2022 were as follows:
Six Months Ended
June 30,
(in thousands)20232022
Balance, beginning of year$4,182 $4,130 
Bad debt expense3,027 1,449 
Write-offs and other(1,771)(1,326)
Balance, end of period$5,438 $4,253 
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 six months ended June 30, 2023 and 2022:
Six Months Ended
June 30,
(in thousands)20232022
Balance, beginning of year$1,024 $2,830 
Bad debt (benefit) expense(73)264 
Other— (402)
Balance, end of period$951 $2,692