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SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2021
Inventories and supplies Inventories and supplies were comprised of the following at December 31:
(in thousands)20212020
Raw materials$5,316 $5,412 
Semi-finished goods6,708 7,943 
Finished goods21,995 33,513 
Supplies6,041 5,010 
Reserve for excess and obsolete items(5,132)(11,748)
Inventories and supplies, net of reserves$34,928 $40,130 
Changes in the reserves for excess and obsolete items for the years ended December 31 were as follows:
(in thousands)202120202019
Balance, beginning of year$11,748 $6,600 $5,499 
Amounts charged to expense3,513 6,713 1,831 
Write-offs and sales(10,129)(1,565)(730)
Balance, end of year$5,132 $11,748 $6,600 
Available-for-sale debt securities Available-for-sale debt securities included within funds held for customers were comprised of the following:
 December 31, 2021
(in thousands)CostGross unrealized gainsGross unrealized lossesFair value
Funds held for customers:(1)
Canadian and provincial government securities$9,724 $— $(374)$9,350 
Canadian guaranteed investment certificate3,957 — — 3,957 
Available-for-sale debt securities$13,681 $— $(374)$13,307 

(1) Funds held for customers, as reported on the consolidated balance sheet as of December 31, 2021, also included cash of $241,488.
 December 31, 2020
(in thousands)CostGross unrealized gainsGross unrealized lossesFair value
Funds held for customers:(1)
Domestic money market fund$15,000 $— $— $15,000 
Canadian and provincial government securities9,566 — (33)9,533 
Canadian guaranteed investment certificate3,929 — — 3,929 
Available-for-sale debt securities$28,495 $— $(33)$28,462 

(1) Funds held for customers, as reported on the consolidated balance sheet as of December 31, 2020, also included cash of $91,287.
Expected maturities of available-for-sale debt securities
Expected maturities of available-for-sale debt securities as of December 31, 2021 were as follows:
(in thousands)Fair value
Due in one year or less$6,780 
Due in two to five years3,535 
Due in six to ten years2,992 
Available-for-sale debt securities$13,307 
Revenue in excess of billings Revenue in excess of billings was comprised of the following at December 31:
(in thousands)20212020
Conditional right to receive consideration$22,780 $13,950 
Unconditional right to receive consideration(1)
7,613 3,667 
Revenue in excess of billings$30,393 $17,617 
(1) Represents revenues that are earned but not currently billable under the related contract terms.
Property, plant and equipment Property, plant and equipment was comprised of the following at December 31:
20212020
(in thousands)Gross carrying amountAccumulated depreciationNet carrying amountGross carrying amountAccumulated depreciationNet carrying amount
Machinery and equipment$333,383 $(276,914)$56,469 $340,032 $(287,384)$52,648 
Buildings and improvements118,219 (58,202)60,017 89,875 (68,510)21,365 
Land and improvements12,981 (3,501)9,480 19,680 (5,013)14,667 
Property, plant and equipment
$464,583 $(338,617)$125,966 $449,587 $(360,907)$88,680 
Intangibles Amortizable intangibles were comprised of the following at December 31:
 20212020
(in thousands)Gross carrying amountAccumulated amortizationNet carrying amountGross carrying amountAccumulated amortizationNet carrying amount
Customer lists/relationships$493,495 $(255,178)$238,317 $352,895 $(202,428)$150,467 
Internal-use software456,133 (342,656)113,477 380,144 (303,422)76,722 
Technology-based intangibles98,813 (38,553)60,260 33,813 (27,613)6,200 
Partner relationships73,095 (2,990)70,105 — — — 
Trade names51,052 (31,277)19,775 30,281 (29,926)355 
Software to be sold36,900 (28,110)8,790 36,900 (23,884)13,016 
Intangibles$1,209,488 $(698,764)$510,724 $834,033 $(587,273)$246,760 
Amortization of intangibles
Amortization expense related to intangibles was as follows for the years ended December 31:
(in thousands)202120202019
Customer lists/relationships$61,805 $41,377 $51,243 
Internal-use software41,601 36,771 41,258 
Technology-based intangibles10,940 6,291 7,415 
Partner relationships2,990 — — 
Trade names1,580 1,884 5,391 
Software to be sold4,226 4,227 4,227 
Amortization of intangibles$123,142 $90,550 $109,534 
Estimated amortization expense
Based on the intangibles in service as of December 31, 2021, estimated amortization expense for each of the next five years ending December 31 is as follows:
(in thousands)Estimated
amortization
expense
2022$136,451 
2023106,420 
202466,626 
202547,702 
202637,954 
Acquired intangibles
We acquire internal-use software and certain partner relationships in the normal course of business. We also purchased customer lists and we acquired other intangible assets in conjunction with acquisitions (Note 6). The following intangible assets were acquired during the years ended December 31:
202120202019
(in thousands)Amount
Weighted-average amortization period
(in years)
Amount
Weighted-average amortization period
(in years)
Amount
Weighted-average amortization period
(in years)
Customer lists/relationships(1)
$149,642 8$45,470 7$17,771 8
Internal-use software75,918 339,344 443,991 3
Partner relationships73,095 15— —— —
Technology-based intangibles65,000 8— —— —
Trade names21,000 10— —— —
Acquired intangibles$384,655 8$84,814 6$61,762 5

(1) We acquired customer lists that did not qualify as business combinations of $22,642 during 2021, $45,470 during 2020 and $11,956 during 2019.
Goodwill Changes in goodwill by reportable business segment and in total were as follows:
(in thousands)PaymentsCloud SolutionsPromotional SolutionsChecksTotal
Balance, December 31, 2019:
Goodwill, gross$168,165 $432,984 $252,834 $434,812 $1,288,795 
Accumulated impairment charges— (387,851)(126,567)— (514,418)
Goodwill, net of accumulated impairment charges168,165 45,133 126,267 434,812 774,377 
Impairment charges (Note 8)
— (4,317)(67,132)— (71,449)
Currency translation adjustment— — 30 — 30 
Balance, December 31, 2020$168,165 $40,816 $59,165 $434,812 $702,958 
Balance, December 31, 2020:
Goodwill, gross$168,165 $432,984 $252,864 $434,812 $1,288,825 
Accumulated impairment charges— (392,168)(193,699)— (585,867)
Goodwill, net of accumulated impairment charges168,165 40,816 59,165 434,812 702,958 
Goodwill resulting from acquisition (Note 6)
727,173 — — — 727,173 
Currency translation adjustment— — 10 — 10 
Balance, December 31, 2021$895,338 $40,816 $59,175 $434,812 $1,430,141 
Balance, December 31, 2021:
Goodwill, gross$895,338 $432,984 $252,874 $434,812 $2,016,008 
Accumulated impairment charges— (392,168)(193,699)— (585,867)
Goodwill, net of accumulated impairment charges$895,338 $40,816 $59,175 $434,812 $1,430,141 
Other non-current assets Other non-current assets were comprised of the following at December 31:
(in thousands)20212020
Postretirement benefit plan asset (Note 13)$87,019 $71,208 
Cloud computing arrangements63,806 29,242 
Prepaid product discounts56,527 50,602 
Loans and notes receivable from distributors, net of allowances for uncollectible accounts(1)
20,201 35,068 
Deferred contract acquisition costs(2)
17,975 9,199 
Other33,935 13,360 
Other non-current assets$279,463 $208,679 

(1) Amount includes the non-current portion of loans and notes receivable. The current portion of these receivables is included in other current assets on the consolidated balance sheets and was $1,317 as of December 31, 2021 and $2,008 as of December 31, 2020. During 2021, we utilized $15,528 of these notes receivable, along with current and future cash payments, to acquire related customer list intangible assets.

(2) Amortization of deferred contract acquisition costs was $4,975 for 2021, $3,739 for 2020 and $3,108 for 2019.
Changes in prepaid product discounts
Changes in prepaid product discounts were as follows for the years ended December 31:
(in thousands)202120202019
Balance, beginning of year$50,602 $51,145 $54,642 
Additions(1)
37,882 30,346 21,068 
Amortization(31,784)(29,235)(24,055)
Other(173)(1,654)(510)
Balance, end of year$56,527 $50,602 $51,145 
 
(1) Prepaid product discounts are generally accrued upon contract execution. Cash payments made for prepaid product discounts were $40,920 for 2021, $33,613 for 2020 and $25,637 for 2019.
Loans and notes receivable by credit quality indicator and year of origination
The following table presents loans and notes receivable from distributors, including the current portion, by credit quality indicator and by year of origination, as of December 31, 2021. There were no write-offs during the year ended December 31, 2021.

Loans and notes receivable from distributors amortized cost basis by origination year
(in thousands)2020201920182017PriorTotal
Risk rating:
1-2 internal grade$1,229 $484 $7,061 $11,744 $1,231 $21,749 
3-4 internal grade— 2,599 — — — 2,599 
Loans and notes receivable$1,229 $3,083 $7,061 $11,744 $1,231 $24,348 
Accrued liabilities Accrued liabilities were comprised of the following at December 31:
(in thousands)20212020
Deferred revenue(1)
$52,645 $42,104 
Employee cash bonuses, including sales incentives45,006 21,090 
Operating lease liabilities (Note 15)14,852 11,589 
Prepaid product discounts due within one year11,866 14,365 
Customer rebates9,036 8,179 
Other83,427 79,856 
Accrued liabilities$216,832 $177,183 

(1) $39,366 of the December 31, 2020 amount was recognized as revenue during 2021.
Supplemental cash flow information Supplemental cash flow information was as follows for the years ended December 31:
(in thousands)202120202019
Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents to the consolidated balance sheets:
Cash and cash equivalents$41,231 $123,122 $73,620 
Restricted cash and restricted cash equivalents included in funds held for customers
241,488 106,287 101,191 
Non-current restricted cash included in other non-current assets2,772 — — 
Total cash, cash equivalents, restricted cash and restricted cash equivalents
$285,491 $229,409 $174,811 
Income taxes paid$18,761 $24,701 $60,764 
Interest paid46,621 22,853 33,227 
Non-cash investing activities:
Non-cash consideration for customer list purchases(1)
$15,528 $21,439 $10,680 
Non-cash financing activities:
Liabilities for holdback payments on asset purchases and acquisitions$4,121 $12,949 $3,405 
Vesting of restricted stock unit awards16,646 7,839 4,374 

(1) Consists of pre-acquisition amounts owed to us by the sellers.

Information regarding operating and finance leases executed in each period can be found in Note 15.
Trade accounts receivable [Member]  
Allowance for credit losses Net trade accounts receivable was comprised of the following at December 31:
(in thousands)20212020
Trade accounts receivable – gross$202,077 $168,387 
Allowances for uncollectible accounts(4,130)(6,428)
Trade accounts receivable – net(1)
$197,947 $161,959 

(1) Includes unbilled receivables of $47,420 as of December 31, 2021 and $21,319 as of December 31, 2020.

Changes in the allowances for uncollectible accounts for the years ended December 31 were as follows:
(in thousands)202120202019
Balance, beginning of year$6,428 $4,985 $3,639 
Bad debt expense223 5,003 5,213 
Write-offs and other(2,521)(3,560)(3,867)
Balance, end of year$4,130 $6,428 $4,985 
Notes receivable [Member]  
Allowance for credit losses
Changes in the allowances for uncollectible accounts related to loans and notes receivable from distributors for the years ended December 31 were as follows:

(in thousands)202120202019
Balance, beginning of year$3,995 $284 $284 
Adoption of ASU No. 2016-13— 4,749 — 
Bad debt (benefit) expense(1,165)5,412 — 
Exchange for customer lists— (6,402)— 
Write-offs— (48)— 
Balance, end of year$2,830 $3,995 $284