Company: DLX
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000027996-25-000051
Chunk: 125

Company: DELUXE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 125
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539 Total share-based compensation expense$19,944 $20,525 $23,676 Income tax benefit$(6,347)$(7,408)$(6,853)As of December 31, 2024, the total compensation expense for unvested awards not yet recognized in our consolidated statements of income was $21,297, net of the effect of estimated forfeitures. This amount is expected to be recognized over a weighted-average period of 1.7 years.Non-qualified stock options – All options permit the purchase of shares of common stock at prices equal to the market value of the stock on the grant date. Options become exercisable starting one year after the grant date, with one-fourth vesting each year over four years. Options granted under the current plan can be exercised for up to 10 years following the grant date, while awards granted prior to 2019 have a seven year life. No stock options were granted during the past three years.Each option can be converted into one share of common stock upon exercise. Information regarding options issued under the current and all previous plans was as follows:Number of options(in thousands)Weighted-average exercise price per optionAggregate intrinsic value(1)(in thousands)Weighted-average remaining contractual term(in years)Outstanding at December 31, 20231,380 $44.91 Forfeited or expired(183)50.63 Outstanding at December 31, 20241,197 44.03 $— 4.1Exercisable at December 31, 20241,147 44.15 $— 4.0(1) The intrinsic value of a stock award is defined as the amount by which the fair value of the underlying stock exceeds the exercise price of the award.Restricted stock units – We grant RSU awards under our long-term incentive plan, which generally vest over periods ranging from two to four years. In addition to the awards granted to employees, non-employee members of our board of directors can elect to receive all or a portion of their fees in the form of RSUs.

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

Each RSU converts into one share of common stock upon completion of the vesting period. Information regarding our RSUs was as follows:Number of units(in thousands)Weighted-average grant date fair value per unitWeighted-average remaining vesting period(in years)