Company: DLX
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000027996-25-000189
Chunk: 18

Company: DELUXE CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 18
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290 42,470 Deferred contract acquisition costs(2)17,775 18,780 Loans and notes receivable from distributors, net of allowance for credit losses(3)9,408 10,789 Other20,913 24,234 Other non-current assets$226,310 $236,644 (1) Amortization of prepaid product discounts was $24,490 for the nine months ended September 30, 2025 and $24,844 for the nine months ended September 30, 2024. (2) Amortization of deferred contract acquisition costs was $8,832 for the nine months ended September 30, 2025 and $9,445 for the nine months ended September 30, 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 $1,640 as of September 30, 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 September 30, 2025 or December 31, 2024.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 September 30, 2025. There were no write-offs or recoveries recorded during the nine months ended September 30, 2025.Loans and notes receivable from distributors amortized cost basis by origination year(in thousands)202420232020PriorTotalRisk rating:1-2 internal grade$842 $282 $757 $9,899 $11,780 3-4 internal grade— — — — — Loans and notes receivable$842 $282 $757 $9,899 $11,780 

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DELUXE CORPORATIONCONDENSED NOTES TO UNAUD