Company: DLX
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000027996-25-000051
Chunk: 128

Company: DELUXE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 128
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 value of plan assets, December 31, 2024$138,134 $— Funded status, December 31, 2023$94,939 $(2,289)Funded status, December 31, 2024$107,524 $(2,120)(1) The accumulated benefit obligation equals the projected benefit obligation.The funded status of our plans was recognized on the consolidated balance sheets as of December 31 as follows:Postretirement benefit planPension plan(in thousands)2024202320242023Other non-current assets$107,524 $94,939 $— $— Accrued liabilities— 324 324 Other non-current liabilities— — 1,796 1,965 Amounts included in accumulated other comprehensive loss that have not been recognized as components of postretirement benefit income were as follows as of December 31:(in thousands)20242023Unrecognized net actuarial loss$(23,332)$(29,019)Unrecognized prior service credit5,650 7,071 Tax effect1,116 2,124 Amount recognized in accumulated other comprehensive loss, net of tax$(16,566)$(19,824)

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

Unrecognized net actuarial gains and losses arise when actual experience deviates from the assumptions made, as well as from changes in those assumptions. For 2024, the net actuarial gain was primarily driven by an increase in the discount rate applied to the benefit obligation and a decrease in the number of participants. For 2023, the net actuarial gain was mainly driven by demographic and claims experience, partially offset by a reduction in the discount rate applied to the benefit obligation. The unrecognized actuarial gains and losses related to our postretirement benefit plan are amortized over the average remaining life expectancy of inactive plan participants, given that a significant potion of the plan participants are classified as inactive. Currently, this amortization period is 12 years.The unrecognized prior service credit associated with our postretirement benefit plan stems from past plan amendments that reduced the accumulated postretirement benefit obligation. Initially, any reduction is applied to offset existing unrecognized prior service cost, followed by any remaining unrecognized transition obligation. Any surplus after these adjustments becomes the unrecognized prior service credit. The prior service credit is then amortized on the straight-line basis over the