Other Long-Term Assets

3 Months Ended

Mar. 31, 2021

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

Other Long-Term Assets

6. Other Long-Term Assets

Other long-term assets consisted of the following at March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021		December 31, 2020
Cash surrender value of corporate-owned life insurance policies	$	4,806	$	4,654
Deferred commissions (1)		32,337		32,455
Restricted cash		59		62
Operating lease assets		23,168		22,308
Strategic investments (2)		29,500		9,500
Warrants for strategic investment (3)		2,211		2,211
Prepaid expenses, deposits and other		10,839		8,727
Total other long-term assets	$	102,920	$	79,917

(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) Strategic investments include investments in non-public technology-driven companies. We account for strategic investments 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 investments are 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, 2021, no impairment was recorded for the investments. We did not recognize any adjustments to the recorded cost bases during the three months ended March 31, 2021. We have recognized an increase of $2.4 million in the cost bases since our initial investment.

During the three months ended March 31, 2021, we made a $20.0 million minority investment in RapidSOS, Inc.

(3) In conjunction with our strategic 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 amount reflected in other assets represents the fair value of the preferred stock warrants, as adjusted for observable price changes of $0.4 million during the quarter ended December 31, 2020.