Company: DLX
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000027996-25-000051
Chunk: 119

Company: DELUXE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 119
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. We have 

65

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

successfully completed the material elements of our organizational redesign, which included consolidating similar roles, reducing hierarchical layers, and expanding spans of control. We are also leveraging technology and process automation to digitize and streamline our operations. Additionally, we are scaling our operations by consolidating back-office functions and tapping into the global labor market. The associated restructuring and integration expense, which consisted primarily of consulting and severance costs, was approximately $50,000 during 2024 and $45,000 during 2023. We anticipate that we will incur approximately $15,000 of additional North Star restructuring and integration expense in 2025.Restructuring and integration expense is reflected on the consolidated statements of income as follows for the years ended December 31:(in thousands)202420232022Total cost of revenue$1,880 $12,230 $607 Operating expenses48,570 78,245 62,529 Restructuring and integration expense$50,450 $90,475 $63,136 Restructuring and integration expense was comprised of the following for the years ended December 31:(in thousands)202420232022External consulting and other costs$33,659 $52,290 $32,067 Employee severance benefits4,374 18,103 12,829 Internal labor3,356 8,723 7,989 Other9,061 11,359 10,251 Restructuring and integration expense$50,450 $90,475 $63,136 Our restructuring and integration accruals are included in accrued liabilities on the consolidated balance sheets. These accruals represent the anticipated cash payments necessary to fulfill the remaining severance obligations for employees who have already been terminated, as well as those expected to be terminated under our various initiatives. We expect that the majority of employee reductions and the associated severance payments will be completed by mid-2025.Changes in our restructuring and integration accruals were as follows:(in thousands)Employee severance benefitsBalance, December 31, 2021$5,672 Charges13,782 Reversals(953)Payments(9,973)Balance, December 31, 20228,528 Charges18,653 Reversals(550)Payments(16,942)Balance,