Other Long-Term Assets (Tables)

3 Months Ended

Mar. 31, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other long-term assets consisted of the following at March 31, 2020 and December 31, 2019 (in thousands):


	March 31, 2020		December 31, 2019
Cash surrender value of corporate-owned life insurance policies	$	3,523	$	4,214
Deferred commissions ⁽¹⁾		21,826		22,068
Restricted cash		55		56
Operating lease assets		21,944		9,653
Investment in unconsolidated affiliate ⁽²⁾		4,700		—
Warrants for unconsolidated affiliate ⁽³⁾		2,588		—
Prepaid expenses, deposits and other		4,821		4,190
Total other long-term assets	$	59,457	$	40,181

(1)

Represents the incremental costs of obtaining contracts with customers, which consist primarily of sales commissions. These costs are ascribed to or allocated to the underlying performance obligations in the contracts and amortized consistent with the recognition timing of the revenue for the underlying performance obligations.

(2)

In March 2020, we made an investment in and entered into a commercial partnership agreement with Flock Group Inc., a provider of advanced security for neighborhoods and law enforcement. Our $4.7 million investment resulted in our ownership of approximately 5% of the outstanding equity interests of this company. We account for this investment under the ASC 321 measurement alternative for equity securities without readily determinable fair values, as there are no quoted market prices for the investment. The investment is measured at cost less impairment, adjusted for observable price changes and is assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. As of March 31, 2020, no impairment was recorded for the investment.

(3)

In conjunction with the equity investment in and commercial partnership with Flock Group, Inc., we have the ability to commit additional capital over time through warrants where the exercisability and exercise prices are conditional on the achievement of certain partnership performance metrics. The fair value of the preferred stock warrants were estimated at $2.6 million using Monte Carlo simulation.