Company: DLX
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000027996-25-000051
Chunk: 72

Company: DELUXE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 72
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 non-current assets on the consolidated balance sheet, totaling $275 million. The following table should be read in conjunction with the consolidated statements of cash flows located in Part II, Item 8 of this report.

(in thousands)20242023ChangeNet cash provided by operating activities$194,281 $198,367 $(4,086)Net cash used by investing activities(69,842)(43,305)(26,537)Net cash used by financing activities(267,255)(37,679)(229,576)Effect of exchange rate change on cash, cash equivalents, restricted cash, and restricted cash equivalents(6,064)3,235 (9,299)Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents$(148,880)$120,618 $(269,498)Free cash flow(1)$99,892 $97,620 $2,272 

(1) See Reconciliation of Non-GAAP Financial Measures within the Consolidated Results of Operations section, which defines and illustrates how we calculate free cash flow.

Cash provided by operating activities for 2024 decreased $4 million compared to 2023, reflecting the secular declines in the Print segment, business exits, inflationary pressures on our cost structure, and an unfavorable year-over-year impact from certain working capital changes, primarily related to receivables, prepaids, and inventories. These impacts were partially offset by our pricing and cost management actions, reduced restructuring and integration spend, and lower payments for cloud computing arrangement implementation costs and performance-based employee cash bonuses.

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Included in net cash provided by operating activities were the following operating cash outflows:

(in thousands)20242023ChangeInterest payments$117,828 $115,556 $2,272 Income tax payments49,893 47,945 1,948 Performance-based employee cash bonuses(1)39,045 44,483 (5,438)Prepaid product discount payments29,809 28,535 1,274 Severance payments10,308 16,942 (6,634)Payments for cloud computing arrangement implementation costs3,145 9,118 (5,973)

(1) Amounts reflect compensation based on total company and segment performance.

Net cash used by investing activities for 2024 increased by $27 million compared to 2023. This increase was primarily driven by lower proceeds from business exit activities in 2024 and proceeds of $8