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Other Liabilities | 12 Months Ended
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Dec. 31, 2022
Other Liabilities Disclosure [Abstract] |
Other Liabilities | 6. Other Liabilities Other accrued expenses consist of the following:
|  | December 31, |
|  | 2022 |  |  | 2021 |
(in thousands) |  |  |  |  |  |
Interest rate caps and accrued interest payable |  | $ | 33,168 |  |  | $ | 19,922 |
Operating lease liability |  |  | 21,584 |  |  |  | 20,415 |
Client deposits |  |  | 16,521 |  |  |  | 13,623 |
General liability insurance reserve |  |  | 12,937 |  |  |  | 7,131 |
Rebates due to retailers |  |  | 12,693 |  |  |  | 17,396 |
Employee medical self-insurance reserves |  |  | 10,007 |  |  |  | 8,161 |
Client refunds related to the Take 5 Matter |  |  | 9,416 |  |  |  | 9,424 |
Taxes |  |  | 7,286 |  |  |  | 5,357 |
Holdbacks |  |  | 2,247 |  |  |  | 15,564 |
Contingent consideration |  |  | 1,674 |  |  |  | 41,522 |
Other accrued expenses |  |  | 5,640 |  |  |  | 5,618 |
Total other accrued expenses |  | $ | 133,173 |  |  | $ | 164,133 |
Other long-term liabilities consist of the following:
|  | December 31, |
|  | 2022 |  |  | 2021 |
(in thousands) |  |  |  |  |  |
Operating lease liability |  | $ | 56,371 |  |  | $ | 40,444 |
Workers' compensation |  |  | 32,377 |  |  |  | 31,401 |
Contingent consideration |  |  | 18,660 |  |  |  | 16,844 |
Other long-term liabilities |  |  | 3,146 |  |  |  | 3,529 |
Total other long-term liabilities |  | $ | 110,554 |  |  | $ | 92,218 |
Under the workers’ compensation programs, the estimated liability for claims incurred but unpaid at December 31, 2022 and 2021 were $57.2 million and $57.7 million, respectively. These amounts include reported claims as well as claims incurred but not reported. As of December 31, 2022, $24.8 million and $32.4 million of this liability was included in the “Accrued compensation and benefits” and “Other long-term liabilities” in the Consolidated Balance Sheets, respectively. As of December 31, 2021, $26.3 million and $31.4 million of this liability was included in the “Accrued compensation and benefits” and “Other long-term liabilities” in the Consolidated Balance Sheets, respectively. In connection with its deductible limits, the Company has standby letters-of-credit as of December 31, 2022 and 2021 in the amount of $44.5 million and $54.8 million, respectively, and $16.0 million and $10.0 million surety bond as of such years supporting the estimated unpaid claim liabilities. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) (as further described in Note 16, Income Taxes) provides for deferred payment of the employer portion of social security taxes between March 27, 2020 and December 31, 2020, with 50% of the deferred amount due December 31, 2021 and the remaining 50% due December 31, 2022. The Company began deferring payment of the employer share of the security taxes in April 2020. The Company repaid $23.8 million and $24.0 million during the years ended December 31, 2022 and 2021, respectively. Contingent Consideration Liabilities Each reporting period, the Company measures the fair value of its contingent liabilities by evaluating the significant unobservable inputs and probability weightings using Monte Carlo simulations. Any resulting decreases or increases in the fair value result in a corresponding gain or loss reported in “Selling, general, and administrative expenses” in the Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company has reassessed the fair value of contingent consideration based on the achievement of performance targets as defined in the respective purchase agreements and it resulted in a fair value adjustment of a $4.8 million loss that was included in “Selling, general, and administrative expenses” in the Consolidated Statements of Operations and Comprehensive (Loss) Income. As of December 31, 2022, the maximum potential payment outcomes were $112.2 million. The following table summarizes the changes in the carrying value of the contingent consideration liabilities:
|  | December 31, |
(in thousands) |  | 2022 |  |  | 2021 |
Beginning of the period |  | $ | 58,366 |  |  | $ | 45,901 |
Fair value of acquisitions |  |  | 510 |  |  |  | 19,832 |
Changes in fair value |  |  | 4,774 |  |  |  | 5,763 |
Payments |  |  | (42,711 | ) |  |  | (11,949 | )
Measurement period adjustments |  |  | — |  |  |  | (1,181 | )
Foreign exchange translation effects |  |  | (605 | ) |  |  | — |
End of the period |  | $ | 20,334 |  |  | $ | 58,366 |

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- Definition The entire disclosure for other liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.20,24) -URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682 + Details
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