Company: DLX
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000027996-25-000189
Chunk: 63

Company: DELUXE CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 63
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 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 16,787 Reserve for excess and obsolete items(11,506)(11,540)Inventories and supplies, net of reserve$33,910 $36,393 Revenue in excess of billings – Revenue in excess of billings was comprised of the following:(in thousands)September 30,2025December 31,2024Conditional right to receive consideration$21,239 $16,943 Unconditional right to receive consideration(1)13,950 9,798 Revenue in excess of billings$35,189 $26,741 (1) Represents revenues that are earned but not currently billable under the related contract terms.

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DELUXE CORPORATIONCONDENSED NOTES TO UNAUDITED CONS