Company: DLX
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0000027996-25-000142
Chunk: 56

Company: DELUXE CORP
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 56
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5 and $3,091 for the quarter ended March 31, 2024.(3) Amount includes the non-current portion of loans and notes receivable. The current portion of these receivables is included in other current assets on the consolidated balance sheets and was $1,387 as of March 31, 2025 and $1,753 as of December 31, 2024. The allowance for credit losses was not material in either period.We categorize loans and notes receivable into risk categories based on information about the ability of borrowers to service their debt, including current financial information, historical payment experience, current economic trends, and other factors. The highest quality receivables are assigned a 1-2 internal grade. Those that have a potential weakness requiring management's attention are assigned a 3-4 internal grade. Past due receivables and those on non-accrual status were not material as of March 31, 2025 or December 31, 2024.

9

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

The following table presents loans and notes receivable from distributors, including the current portion, by credit quality indicator and by year of origination, as of March 31, 2025. There were no write-offs or recoveries recorded during the quarter ended March 31, 2025.Loans and notes receivable from distributors amortized cost basis by origination year(in thousands)202420232020PriorTotalRisk rating:1-2 internal grade$893 $300 $827 $10,748 $12,768 3-4 internal grade— — — — — Loans and notes receivable$893 $300 $827 $10,748 $12,768 Accrued liabilities – Accrued liabilities were comprised of the following:(in thousands)March 31,2025December 31,2024Deferred revenue(1)$28,250 $31,605 Employee cash bonuses, including sales incentives15,643 33,422 Interest14,610 9,493 Operating lease liabilities12,057 12,406 Customer rebates9,382 10,100 Prepaid product discounts8,071 2,583 Wages and payroll liabilities, including vacation7,843 10,321 Restructuring and integration (