Company: DLX
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0000027996-25-000142
Chunk: 19

Company: DELUXE CORP
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 1
Chunk 19
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2024$(19,802)$4,910 $(10,945)$(25,837)(1) Other comprehensive income before reclassifications is net of income tax expense of $2,169.

12

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

NOTE 6:DIVESTITURESIn recent years, we decided to exit certain businesses and dispose of other assets. We believe these actions have enabled us to concentrate our resources on our growth businesses, while optimizing our operations. In September and December 2023, we executed agreements to transition our U.S. and Canadian payroll and human resources services customers to other service providers. The recognition of income from this business exit was based on the timing of customer conversion and retention activities, which were substantially completed during 2024. The remaining cash proceeds from this business exit were received during the quarter ended March 31, 2025. The results of this business are reported as All other in Note 13.Business exits and asset sales were as follows for the quarters ended March 31, 2025 and March 31, 2024:(in thousands)Gain on sale of businesses and long-lived assetsProceeds from sale of businesses and long-lived assetsQuarter ended March 31, 2025:Payroll and human resources services business$— $1,968 Quarter ended March 31, 2024:Payroll and human resources services business$7,581 $— Small business distributor customer list(1)1,000 — Total$8,581 $— (1) A note receivable was executed in conjunction with this sale. No cash proceeds were received.

NOTE 7:FAIR VALUE MEASUREMENTSInformation regarding the fair values of our financial instruments was as follows: Fair value measurements usingMarch 31, 2025Quoted prices in active markets for identical assets(Level 1)Significant other observable inputs(Level 2)Significant unobservable inputs(Level 3)(in thousands)Balance sheet locationCarrying valueFair valueAmortized cost:Loans and notes receivable from distributorsOther current and other non-current assets$11,957$13,320$—$—$13,320Long-term debtCurrent portion of long-term debt and long-term debt1,492,5451,470,714—1,470,714—

13

DELUXE CORPORATIONCONDENSED