Company: DLX
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000027996-25-000189
Chunk: 25

Company: DELUXE CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 25
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ollars in thousands, except per share amounts)

capacity by centralizing back-office activities and utilizing talent from the global workforce. The associated restructuring and integration expense, which consisted primarily of consulting and employee severance costs, was approximately $15,000 during the nine months ended September 30, 2025 and approximately $33,000 during the nine months ended September 30, 2024. To date, we have incurred expense of approximately $110,000, and we anticipate that we will incur approximately $5,000 of additional North Star restructuring and integration expense in the fourth quarter of 2025.Restructuring and integration expense is reflected on the consolidated statements of comprehensive income as follows: Quarter EndedSeptember 30,Nine Months EndedSeptember 30,(in thousands)2025202420252024Total cost of revenue$24 $234 $965 $1,132 Operating expenses2,910 11,031 14,625 35,899 Restructuring and integration expense$2,934 $11,265 $15,590 $37,031 Restructuring and integration expense for each period was comprised of the following: Quarter EndedSeptember 30,Nine Months EndedSeptember 30,(in thousands)2025202420252024Employee severance benefits$1,580 $902 $7,651 $2,459 External consulting and other costs324 8,614 3,584 25,733 Internal labor597 381 2,297 1,602 Other433 1,368 2,058 7,237 Restructuring and integration expense$2,934 $11,265 $15,590 $37,031 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-2026.Changes in our restructuring and integration accruals were as follows:(in thousands)Employee severance benefitsBalance, December 31, 2024$3,755 Charges8,109 Reversals(458)Payments(7,517)Balance, September 30, 2025$3,889 The charges and reversals shown in the