v3.25.2
Supplemental balance sheet and cash flow information
 6 Months Ended
Jun. 30, 2025
Balance Sheet Related Disclosures [Abstract]  
Supplemental balance sheet and cash flow information
NOTE 3: SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION

Trade accounts receivable – Net trade accounts receivable was comprised of the following:
(in thousands)June 30,
2025		December 31,
2024
Trade accounts receivable – gross$186,672 $183,196 
Allowance for credit losses(9,723)(9,120)
Trade accounts receivable – net(1)
$176,949 $174,076 

(1) Includes unbilled receivables of $55,242 as of June 30, 2025 and $47,341 as of December 31, 2024.

Changes in the allowance for credit losses for the six months ended June 30, 2025 and June 30, 2024 were as follows:
Six Months Ended
June 30,
(in thousands)20252024
Balance, beginning of year$9,120 $6,541 
Bad debt expense3,705 8,980 
Write-offs and other(3,102)(5,937)
Balance, end of period$9,723 $9,584 

Inventories and supplies – Inventories and supplies were comprised of the following:
(in thousands)June 30,
2025		December 31,
2024
Finished and semi-finished goods$26,786 $31,146 
Raw materials and supplies17,943 16,787 
Reserve for excess and obsolete items(10,990)(11,540)
Inventories and supplies, net of reserve$33,739 $36,393 

Revenue in excess of billings – Revenue in excess of billings was comprised of the following:
(in thousands)June 30,
2025		December 31,
2024
Conditional right to receive consideration$19,022 $16,943 
Unconditional right to receive consideration(1)
10,081 9,798 
Revenue in excess of billings$29,103 $26,741 

(1) Represents revenues that are earned but not currently billable under the related contract terms.

Intangibles – Intangibles were comprised of the following:
 June 30, 2025December 31, 2024
(in thousands)Gross carrying amountAccumulated amortizationNet carrying amountGross carrying amountAccumulated amortizationNet carrying amount
Internal-use software$528,338 $(373,868)$154,470 $488,840 $(339,683)$149,157 
Customer lists/relationships310,150 (238,209)71,941 311,578 (223,272)88,306 
Partner relationships76,405 (21,304)55,101 76,252 (19,632)56,620 
Technology-based intangibles65,000 (33,177)31,823 65,000 (29,115)35,885 
Software to be sold6,200 (5,425)775 6,200 (5,115)1,085 
Intangibles$986,093 $(671,983)$314,110 $947,870 $(616,817)$331,053 
Amortization of intangibles was $27,900 for the quarter ended June 30, 2025, $37,366 for the quarter ended June 30, 2024, $57,575 for the six months ended June 30, 2025, and $73,064 for the six months ended June 30, 2024. During the quarter ended June 30, 2024, we modified the useful life of a trade name asset that we retired in the fourth quarter of 2024. This change resulted in incremental amortization expense of $6,674 during the second quarter of 2024.

Based on the intangibles in service as of June 30, 2025, estimated future amortization expense is as follows:
(in thousands)Estimated
amortization
expense
Remainder of 2025$50,765 
202677,726 
202749,550 
202828,858 
202916,142 

In the normal course of business, we acquire and develop internal-use software. We also, at times, purchase customer list and partner relationship assets. During the quarter ended June 30, 2025, we acquired or developed internal-use software of $38,521 with a weighted-average useful life of 3 years. Other intangibles acquired during the period were not material.

Goodwill – Changes in goodwill by reportable segment and in total were as follows for the six months ended June 30, 2025:

(in thousands)Merchant ServicesB2B Payments
Data Solutions(1)
Print(1)
Total
Balance, December 31, 2024
$727,688 $160,431 $40,804 $493,814 $1,422,737 
Currency translation adjustment— — — 63 63 
Balance, June 30, 2025
$727,688 $160,431 $40,804 $493,877 $1,422,800 

(1) The Data Solutions and Print balances are net of accumulated impairment charges of $145,584 and $193,699, respectively, for each period.

Other non-current assets – Other non-current assets were comprised of the following:
(in thousands)June 30,
2025		December 31,
2024
Postretirement benefit plan asset$111,148 $107,524 
Prepaid product discounts(1)
36,843 32,847 
Cloud computing arrangement implementation costs34,863 42,470 
Deferred contract acquisition costs(2)
18,755 18,780 
Loans and notes receivable from distributors, net of allowance for credit losses(3)
9,931 10,789 
Other20,878 24,234 
Other non-current assets$232,418 $236,644 

(1) Amortization of prepaid product discounts was $16,442 for the six months ended June 30, 2025 and $16,354 for the six months ended June 30, 2024.
(2) Amortization of deferred contract acquisition costs was $5,844 for the six months ended June 30, 2025 and $6,298 for the six months ended June 30, 2024.

(3) 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 $1,652 as of June 30, 2025 and $1,753 as of December 31, 2024. The allowance for credit losses was not material in either period.

We categorize loans and notes receivable into risk categories based on information about the ability of borrowers to service their debt, including current financial information, historical payment experience, current economic trends, and other factors. The highest quality receivables are assigned a 1-2 internal grade. Those that have a potential weakness requiring management's attention are assigned a 3-4 internal grade. Past due receivables and those on non-accrual status were not material as of June 30, 2025 or December 31, 2024.
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 June 30, 2025. There were no write-offs or recoveries recorded during the six months ended June 30, 2025.

Loans and notes receivable from distributors amortized cost basis by origination year
(in thousands)202420232020PriorTotal
Risk rating:
1-2 internal grade$868 $291 $792 $10,397 $12,348 
3-4 internal grade— — — — — 
Loans and notes receivable$868 $291 $792 $10,397 $12,348 

Accrued liabilities – Accrued liabilities were comprised of the following:
(in thousands)June 30,
2025		December 31,
2024
Deferred revenue(1)
$27,305 $31,605 
Employee cash bonuses, including sales incentives23,860 33,422 
Interest13,999 9,493 
Customer rebates13,010 10,100 
Operating lease liabilities12,027 12,406 
Wages and payroll liabilities, including vacation7,147 10,321 
Prepaid product discounts6,898 2,583 
Restructuring and integration (Note 8)5,010 3,755 
Other45,891 35,908 
Accrued liabilities$155,147 $149,593 
 
(1) Revenue recognized for amounts included in deferred revenue at the beginning of the period was $20,252 for the six months ended June 30, 2025 and $24,333 for the six months ended June 30, 2024.

Supplemental cash flow information – The reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the consolidated statements of cash flows was as follows:
(in thousands)June 30,
2025		June 30,
2024
Cash and cash equivalents$26,000 $23,077 
Restricted cash and restricted cash equivalents included in settlement processing assets12,364 50,937 
Non-current restricted cash included in other non-current assets3,115 3,990 
Total cash, cash equivalents, restricted cash, and restricted cash equivalents$41,479 $78,004