Company: DLX
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0000027996-25-000142
Chunk: 53

Company: DELUXE CORP
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 53
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 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, Improvements to Income Tax Disclosures. This standard modifies the required income tax disclosures to include specific categories in the income tax rate reconciliation and requires the disclosure of income tax payments by jurisdiction, among other changes. The guidance is effective for our annual consolidated financial statements for the year ending December 31, 2025. Both prospective and retrospective application of the standard is permitted upon adoption. We are currently evaluating the potential effects of adopting this new guidance on the disclosures within our consolidated financial statements.ASU No. 2024-03 – In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses. This standard does not change the expense captions presented on the face of the income statement. Instead, it requires the disaggregation of certain expense captions into specified categories within the footnotes to the consolidated financial statements. This standard is effective for our annual consolidated financial statements for the year ending December 31, 2027. Both prospective and retrospective application of the standard is permitted upon adoption. We are currently evaluating the potential effects of adopting this new guidance on the disclosures within our consolidated financial statements.

NOTE 3:SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATIONTrade accounts receivable – Net trade accounts receivable was comprised of the following:(in thousands)March 31,2025December 31,2024Trade accounts receivable – gross$182,837 $183,196 Allowance for credit losses(9,147)(9,120)Trade accounts receivable – net(1)$173,690 $174,076 (1) Includes unbilled receivables of $59,785 as of March 31, 2025 and $47,341 as of December 31, 2024.

7

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

Changes in the allowance for credit losses for the quarters ended March 31, 2025 and March 31, 2024 were as follows:Quarter EndedMarch 31,(in thousands)20252024Balance, beginning of year$9,120 $6,541 Bad debt expense1,770 2,960 Write-offs and other(1,743)(1,941)Balance, end of period$