Company: DLX
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000027996-25-000189
Chunk: 98

Company: DELUXE CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 98
---
 impairment charge— 6,700 — 6,700 Gain on sale of businesses and long-lived assets— (5,208)— (29,190)Adjustments, pretax19,513 37,575 67,526 88,454 Income tax provision impact of pretax adjustments(1)(3,636)(9,001)(14,544)(18,845)Adjustments, net of tax15,877 28,574 52,982 69,609 Adjusted net income attributable to Deluxe49,606 37,505 123,108 109,802 Income allocated to participating securities— (8)— (8)Re-measurement of share-based awards classified as liabilities— (8)(69)(47)Adjusted income attributable to Deluxe available to common shareholders$49,606 $37,489 $123,039 $109,747 Adjusted weighted average shares and potential common shares outstanding(2)45,596 44,806 45,357 44,667 GAAP diluted EPS$0.74 $0.20 $1.54 $0.90 Adjustments, net of tax0.35 0.64 1.17 1.56 Adjusted diluted EPS$1.09 $0.84 $2.71 $2.46 

(1) The tax effect of the pretax adjustments takes into account the tax treatment and related tax rate(s) applicable to each adjustment in the relevant tax jurisdiction(s). Generally, this results in a tax impact that approximates the U.S. effective tax rate for each adjustment. However, the tax impact of certain adjustments, such as share-based compensation expense and gains on sales of businesses, depends on whether the amounts are deductible in the respective tax jurisdictions and the applicable effective tax rate(s) in those jurisdictions.

(2) The total of weighted-average shares and potential common shares outstanding used in the calculation of adjusted diluted EPS may differ from the GAAP calculation due to differences in the amount of dilutive securities in each calculation.

RESTRUCTURING AND INTEGRATION EXPENSE

Restructuring and integration expense consists of costs related to initiatives aimed at driving earnings and cash flow growth, including costs related to the consolidation and migration of certain applications and processes. These costs consist primarily of consulting, project management services, internal labor, and other items such as facility closure and consolidation costs. Additionally, we have recorded employee severance costs