Company: DLX
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000027996-25-000189
Chunk: 15

Company: DELUXE CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 15
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 and it will be applied prospectively. We do not expect that adoption of this standard will have a material impact on our consolidated financial statements.ASU 2025-06 – In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software. This standard revises the existing guidance that refers to the various stages of a software development project to align better with current software development methods, such as agile programming. Under the new standard, companies will begin capitalizing eligible costs when (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. The guidance is effective for us on January 1, 2028 and allows companies to choose from three transition methods. We are currently assessing how adoption of this standard will affect our consolidated financial statements.

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DELUXE CORPORATIONCONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(dollars in thousands, except per share amounts)

NOTE 3: SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATIONTrade accounts receivable – Net trade accounts receivable was comprised of the following:(in thousands)September 30,2025December 31,2024Trade accounts receivable – gross(1)$199,497 $183,196 Allowance for credit losses(9,564)(9,120)Trade accounts receivable – net$189,933 $174,076 (1) Includes unbilled receivables of $62,011 as of September 30, 2025 and $47,341 as of December 31, 2024.Changes in the allowance for credit losses for the nine months ended September 30, 2025 and September 30, 2024 were as follows:Nine Months EndedSeptember 30,(in thousands)20252024Balance, beginning of year$9,120 $6,541 Bad debt expense4,980 12,040 Write-offs and other(4,536)(7,375)Balance, end of period$9,564 $11,206 Inventories and supplies – Inventories and supplies were comprised of the following:(in thousands)September 30,2025December 31,2024Finished and semi-finished goods$27,649 $31,146 Raw materials and supplies17,767 16,