Consolidated Financial Statement Details (Tables)

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Restricted cash


(dollars in thousands)	March 31, 2022		December 31, 2021
Restricted cash due to customers	$	276,130	$	593,296
Letters of credit for operating leases	2,193		2,256
Real estate escrow balances	1,271		1,064
Total restricted cash	$	279,594	$	596,616

Components of Prepaid Expenses and Other Assets

Prepaid expenses and other assets


(dollars in thousands)	March 31, 2022		December 31, 2021
Costs of obtaining contracts(1)(2)	$	76,482	$	78,465
Prepaid software maintenance and subscriptions(3)	33,950		28,880
Derivative instruments	21,947		7,160
Receivables for probable insurance recoveries(4)(5)	12,715		18,202
Implementation costs for cloud computing arrangements, net(6)(7)	11,354		11,892
Prepaid insurance	11,237		5,363
Unbilled accounts receivable	5,545		5,443
Taxes, prepaid and receivable	4,006		3,986
Deferred tax assets	1,569		1,546
Other assets	11,302		11,835
Total prepaid expenses and other assets	190,107		172,772
Less: Long-term portion	90,194		77,266
Prepaid expenses and other current assets	$	99,913	$	95,506

(1)Amortization expense from costs of obtaining contracts was $8.5 million and $9.2 million for the three months ended March 31, 2022 and 2021, respectively.

(2)The current portion of costs of obtaining contracts as of March 31, 2022 and December 31, 2021 was $29.7 million and $30.2 million, respectively.

(3)The current portion of prepaid software maintenance and subscriptions as of March 31, 2022 and December 31, 2021 was $29.8 million and $24.7 million, respectively.

(4)All receivables for probable insurance recoveries are classified as current.

(5)See discussion of the Security Incident at Note 10 to these condensed consolidated financial statements.

(6)These costs primarily relate to the multi-year implementations of our new global enterprise resource planning and customer relationship management systems.

(7)Amortization expense from capitalized cloud computing implementation costs was insignificant for the three months ended March 31, 2022 and 2021. Accumulated amortization for these costs was $3.5 million and $3.0 million as of March 31, 2022 and December 31, 2021, respectively.

Components of Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities


(dollars in thousands)	March 31, 2022		December 31, 2021
Taxes payable(1)	$	23,305	$	19,777
Accrued legal costs(2)	12,208		11,724
Operating lease liabilities, current portion	8,930		9,170
Customer credit balances	7,403		8,403
Accrued commissions and salaries	4,656		7,872
Accrued health care costs	2,601		3,042
Accrued vacation costs	2,210		2,234
Accrued bonuses	1,460		5,829
Accrued transaction-based costs related to payments services	1,418		5,427
Unrecognized tax benefit	1,409		1,248
Amounts payable to former EVERFI option holders(3)	—		17,404
Other liabilities	8,101		9,310
Total accrued expenses and other liabilities	73,701		101,440
Less: Long-term portion	1,506		1,344
Accrued expenses and other current liabilities	$	72,195	$	100,096

(1)We deferred payments of the employer's portion of Social Security taxes during 2020 under the Coronavirus, Aid, Relief and Economic Security Act, half of which was due by the end of calendar year 2021 with the remainder due by the end of calendar year 2022.

(2)All accrued legal costs are classified as current.

(3)Represents amounts that had not been paid by EVERFI to its former option holders as of December 31, 2021, solely due to the timing of the acquisition on the last day of 2021. See Note 3 to these condensed consolidated financial statements for additional information regarding our acquisition of EVERFI.