Annual report pursuant to Section 13 and 15(d)

Accounts Payable, Accrued Expenses??and Other Current Liabilities

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Accounts Payable, Accrued Expenses and Other Current Liabilities
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Accounts Payable, Accrued Expenses and Other Current Liabilities Accounts Payable, Accrued Expenses and Other Current Liabilities
 
Accounts payable, accrued expenses and other current liabilities consisted of the following:

  December 31,
  2023 2022
(in thousands)
Accrued investment manager fees $ 106,612  $ 99,851 
Accrued compensation and related taxes 72,466  77,939 
Accounts payable 35,738  11,271 
Accrued professional services 14,289  10,762 
Accrued technology 4,151  6,393 
Accrued interest 2,473  3,091 
Accrued treasury stock purchases —  9,289 
Other accrued expenses 5,695  15,270 
Total accrued expenses and other current liabilities $ 241,424  $ 233,866 

During the year ended December 31, 2022, the Company entered into an outsourcing arrangement with TCS to increase operational scale and business agility. Under this agreement, the Company began to outsource certain administrative and operational services of the Envestnet Data & Analytics segment located in Bangalore, India. Additionally, as part of an organizational realignment in the fourth quarter of 2022, the Company entered into separation agreements with a number of employees. This realignment will allow Envestnet to operate more efficiently and prioritize activities and services that will benefit its clients and the future of its business. In connection with the outsourcing arrangement with TCS, the fourth quarter 2022 organizational realignment and various other severance activity, the Company recognized $30.1 million in total severance expense during the year ended December 31, 2022.

During the year ended December 31, 2023, as part of a reduction in force initiative, the Company entered into separation agreements with a number of employees. In connection with this reduction in force initiative that began in the first quarter of 2023, as well as the fourth quarter 2022 organizational realignment, the Company incurred $35.4 million in total severance expense for the year ended December 31, 2023.

As of December 31, 2023 the Company had an ending liability balance of $10.3 million related to these efforts, of which the Company anticipates approximately $9.2 million to be paid during 2024, with the remaining balance paid through 2030.

The following table presents a reconciliation of the beginning and ending liability balance related to these efforts, which is primarily included within accrued compensation and related taxes in the table above.

  Envestnet Wealth Solutions Envestnet Data & Analytics Nonsegment Total
(in thousands)
Balance as of December 31, 2021 $ 4,670  $ 810  $ —  $ 5,480 
Severance 13,237  10,745  6,135  30,117 
Cash payments (5,325) (8,769) (6,135) (20,229)
Balance as of December 31, 2022 12,582  2,786  —  15,368 
Severance 17,232  11,813  6,354  35,399 
Cash payments (20,021) (14,113) (6,354) (40,488)
Balance as of December 31, 2023 $ 9,793  $ 486  $ —  $ 10,279