Company: DLX
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000027996-25-000051
Chunk: 137

Company: DELUXE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 137
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 including production printers and data center equipment. Some of these leases include options to extend the lease term, although the impact of these renewal periods was not material to the amounts recorded for operating lease assets and liabilities. We have also entered into finance leases for our corporate headquarters and certain information technology hardware.Leases were reflected on the consolidated balance sheets as follows at December 31:(in thousands)20242023Operating leases:Operating lease assets$49,382 $58,961 Accrued liabilities$12,406 $13,562 Operating lease liabilities48,982 58,840 Total operating lease liabilities$61,388 $72,402 Weighted-average remaining lease term5 years6 yearsWeighted-average discount rate8.5 %7.8 %Finance leases:Property, plant and equipment, gross$28,166 $26,941 Accumulated depreciation(5,995)(4,188)Property, plant and equipment, net$22,171 $22,753 Accrued liabilities$1,895 $1,146 Other non-current liabilities25,471 26,134 Total finance lease liabilities$27,366 $27,280 Weighted-average remaining lease term12 years14 yearsWeighted-average discount rate6.0 %6.0 %

78

DELUXE CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(dollars in thousands, except per share amounts)

The components of lease expense for the years ended December 31 were as follows:(in thousands)202420232022Operating lease expense$18,317 $18,811 $20,480 Finance lease expense:Amortization of right-of-use assets1,807 2,067 1,853 Interest on lease liabilities1,603 1,659 1,697 Total finance lease expense3,410 3,726 3,550 Total lease expense$21,727 $22,537 $24,030 Supplemental cash flow information related to leases for the years ended December 31 was as follows:(in thousands)202420232022Lease assets obtained in exchange for lease obligations:Operating leases$3,617 $26,167 $6,294 Finance leases1,225 — — Cash paid for amounts included in lease obligations:Operating cash flows from operating leases$16,993 $19,922 $19,015 Operating