Company: DLX
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000027996-25-000163
Chunk: 61

Company: DELUXE CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 8
Chunk 61
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 and $193,699, respectively, for each period.Other non-current assets – Other non-current assets were comprised of the following:(in thousands)June 30,2025December 31,2024Postretirement benefit plan asset$111,148 $107,524 Prepaid product discounts(1)36,843 32,847 Cloud computing arrangement implementation costs34,863 42,470 Deferred contract acquisition costs(2)18,755 18,780 Loans and notes receivable from distributors, net of allowance for credit losses(3)9,931 10,789 Other20,878 24,234 Other non-current assets$232,418 $236,644 (1) Amortization of prepaid product discounts was $16,442 for the six months ended June 30, 2025 and $16,354 for the six months ended June 30, 2024. (2) Amortization of deferred contract acquisition costs was $5,844 for the six months ended June 30, 2025 and $6,298 for the six months ended June 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 $1,652 as of June 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 June 30, 2025 or December 31, 2024.

10

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 June 30, 2025. There were no write-offs or recoveries recorded during the six months ended