Company: DLX
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000027996-25-000051
Chunk: 130

Company: DELUXE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 130
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6.5 %6.6 %7.3 %6.6 %7.3 %Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)4.5 %4.5 %4.5 %4.5 %4.5 %4.5 %Year that the rate reaches the ultimate trend rate203020302030203020302030Plan assets – The allocation of plan assets by asset category as of December 31 was as follows:Postretirement benefit plan20242023U.S. corporate debt securities55 %54 %International equity securities20 %20 %U.S. large capitalization equity securities17 %18 %Mortgage-backed securities5 %5 %U.S. small and mid-capitalization equity securities3 %3 %Total100 %100 %Our postretirement benefit plan is designed with assets intended to meet long-term obligations. To achieve this, we utilize a total return investment strategy that takes into account cash flow needs while balancing long-term projected returns against expected asset risks, which are measured using projected standard deviations. Our risk tolerance is determined by considering projected plan liabilities, the plan's funded status, projected liquidity needs, and our overall financial condition. The target asset allocation percentages for our postretirement benefit plan are derived from our liability and asset projections. The targeted allocation of plan assets is 60% fixed income securities, 20% international equity securities, 17% large capitalization equity securities, and 3% small and mid-capitalization equity securities. Information regarding fair value measurements of plan assets was as follows as of December 31, 2024:Fair value measurements usingQuoted prices in active markets for identical assetsSignificant other observable inputsSignificant unobservable inputsInvestments measured at net asset valueFair value as ofDecember 31, 2024(in thousands)(Level 1) (Level 2)(Level 3)U.S. corporate debt securities$— $76,628 $— $— $76,628 International equity securities— 27,356 — — 27,356 U.S. large capitalization equity securities— 23,754 — — 23,754 Mortgage-backed securities— 6,939 — — 6,939 U.S. small and mid-capitalization equity securities— 3,457 — — 3,