Company: DLX
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000027996-25-000051
Chunk: 142

Company: DELUXE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 142
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 packaging businesses, and the payroll and human resources services business that we substantially exited during 2024 (Note 6).

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DELUXE CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(dollars in thousands, except per share amounts)

The CODM does not review segment expense information. Instead, he receives commentary that discusses variances between planned, forecasted, or prior year adjusted EBITDA amounts. This commentary may include discussion of relevant expense categories, which can vary from period to period based on the drivers of the variances. Additionally, the CODM reviews consolidated expense information as presented in our consolidated financial statements, as well as consolidated expenses for our various shared services support functions.For all our segments, other segment items primarily consist of cost of revenue, selling expenses, and allocated costs of our shared services functions, including information technology, real estate, and finance costs. For our digital businesses, which include Merchant Services, B2B Payments, and Data Solutions, cost of revenue includes information technology costs, payroll and related expenses, and related overhead. For the Print segment, cost of revenue includes raw materials used to manufacture products, shipping and handling costs, third-party costs for outsourced products, payroll and related expenses, information technology costs, and related overhead. Selling expenses for all segments include costs associated with our sales organization and certain marketing and advertising expenses. They also encompass the costs of our call center operations for the Merchant Services, B2B Payments, and Print segments, as well as external commissions for the B2B Payments and Print segments.The following table presents a reconciliation of total segment adjusted EBITDA to consolidated income before income taxes:(in thousands)202420232022Total segment adjusted EBITDA$578,294 $609,582 $616,012 Corporate operations(166,219)(192,447)(197,882)Depreciation and amortization(165,544)(169,703)(172,552)Interest expense(123,281)(125,643)(94,454)Non-controlling interest143 107 135 Asset impairment charges(7,743)— — Restructuring and integration expense(50,450)(90,475)(63,136)Share-based compensation expense(19,944)(20,525)(23,676)Acquisition transaction costs— — (130)Certain legal-related benefit (expense)34 (2,195)730 Loss on sale of investment securities— (1,323)— Gain on sale