Other Balance Sheet Items

3 Months Ended

Mar. 31, 2020

Balance Sheet Related Disclosures [Abstract]

Other Balance Sheet Items

Selected Balance Sheet Items

Other Current Assets

Other current assets consist of the following: 

	March 31,		December 31,
	2020		2019
	(In thousands)
Prepaid registry fees	$	22,286	$	21,717
Prepaid expenses	16,611		19,818
Accounts receivable, net	5,047		1,524
Contingent consideration receivable	—		14,721
Other	2,919		2,750
Total other current assets	$	46,863	$	60,530

During the three months ended March 31, 2020 the Company received $15.2 million contingent consideration related to its divested security services business. The excess of the proceeds received over the balance of the receivable was recognized as a gain and included in Non-operating income, net.

Other Long-Term Assets

Other long-term assets consist of the following: 

	March 31,		December 31,
	2020		2019
	(In thousands)
Restricted cash	$	9,409	$	9,405
Operating lease right-of-use asset	8,645		9,133
Long-term prepaid registry fees	7,851		7,753
Other tax receivable	6,927		6,927
Other	5,855		6,594
Total other long-term assets	$	38,687	$	39,812

The current and long-term prepaid registry fees in the tables above relate to the fees the Company pays to ICANN for each annual increment of .com domain name registrations and renewals which are deferred and amortized over the domain name registration term. The amount of prepaid registry fees as of March 31, 2020 reflects amortization of $8.9 million during the three months ended March 31, 2020 which was recorded in Cost of Revenues.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of the following: 

	March 31,		December 31,
	2020		2019
	(In thousands)
Accounts payable and accrued expenses	$	10,434	$	17,177
Customer deposits, net	43,376		52,804
Taxes payable and other tax liabilities	44,847		33,435
Interest payable	33,021		24,318
Accrued employee compensation	26,022		49,869
Accrued registry fees	12,391		11,529
Customer incentives payable	5,503		13,547
Other accrued liabilities	4,421		7,309
Total accounts payable and accrued liabilities	$	180,015	$	209,988

Customer deposits primarily relate to advance payments to cover domain name registration activity by registrars. The balance of customer deposits can fluctuate significantly due to the timing of payments from large customers. Taxes payable and other tax liabilities reflect the income tax provision and payments made during the period. Interest payable varies at each period-end based on the payment due dates for each Senior Note issuance. Accrued employee compensation primarily consists of liabilities for employee leave, salaries, payroll taxes, employee contributions to the employee stock purchase plan, and incentive compensation. Accrued employee incentive compensation as of December 31, 2019, was paid during the three months ended March 31, 2020. Customer incentives payable includes amounts related to rebates and marketing programs payable to registrars. These amounts may vary from period to period due to the timing of payments.

Long-term tax and other liabilities

	March 31,		December 31,
	2020		2019
	(In thousands)
Long-term tax liabilities	$	133,858	$	308,112
Long-term operating lease liability	4,221		4,564
Long-term tax and other liabilities	$	138,079	$	312,676

During the three months ended March 31, 2020, the Company remeasured its previously unrecognized income tax benefits relating to the worthless stock deduction taken in 2013. The remeasurement resulted in the recognition of a $167.8 million benefit in the quarter.