Other Balance Sheet Items

9 Months Ended

Sep. 30, 2020

Balance Sheet Related Disclosures [Abstract]

Other Balance Sheet Items

Selected Balance Sheet Items

Other Current Assets

Other current assets consist of the following: 

	September 30,		December 31,
	2020		2019
	(In thousands)
Prepaid expenses	$	22,032	$	19,818
Prepaid registry fees	22,578		21,717
Accounts receivable, net	6,356		1,524
Contingent consideration receivable	—		14,721
Other	4,801		2,750
Total other current assets	$	55,767	$	60,530

During the nine months ended September 30, 2020, the Company received $20.4 million of 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: 

	September 30,		December 31,
	2020		2019
	(In thousands)
Operating lease right-of-use asset	$	11,184	$	9,133
Restricted cash	9,408		9,405
Long-term prepaid registry fees	7,942		7,753
Other tax receivable	1,254		6,927
Other	5,375		6,594
Total other long-term assets	$	35,163	$	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 September 30, 2020 reflects amortization of $9.1 million and $27.0 million during the three and nine months ended September 30, 2020 which was recorded in Cost of Revenues. Other tax receivables as of December 31, 2019 included indirect benefits related to the previously unrecognized tax benefits that were remeasured during the three months ended September 30, 2020, as discussed in Note 9. Income Taxes.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of the following: 

	September 30,		December 31,
	2020		2019
	(In thousands)
Accounts payable and accrued expenses	$	10,469	$	17,177
Taxes payable and other tax liabilities	34,176		33,435
Customer deposits	46,890		52,804
Accrued employee compensation	44,106		49,869
Interest payable	33,021		24,318
Accrued registry fees	12,419		11,529
Customer incentives payable	10,971		13,547
Other accrued liabilities	6,290		7,309
Total accounts payable and accrued liabilities	$	198,342	$	209,988

Taxes payable and other tax liabilities reflect amounts accrued for the income tax provision and payments made during the period. Customer deposits primarily relate to advance payments to cover domain name registration activity by registrars. 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 nine months ended September 30, 2020. Interest payable varies at each period-end based on the payment due dates for each Senior Note issuance. 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

	September 30,		December 31,
	2020		2019
	(In thousands)
Long-term tax liabilities	$	96,190	$	308,112
Long-term operating lease liability	5,016		4,564
Long-term tax and other liabilities	$	101,206	$	312,676

During the nine months ended September 30, 2020, the Company remeasured certain previously unrecognized income tax benefits, including those relating to the worthless stock deduction taken in 2013. These remeasurements resulted in the recognition of $191.8 million of income tax benefits in the nine months ended September 30, 2020, as discussed in Note 9. Income Taxes.