Company: DLX
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000027996-25-000051
Chunk: 115

Company: DELUXE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 115
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 Revenue generated by the exited businesses is reported as All Other in the business segment results presented in Note 17.

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

Business exits and asset sales were as follows for the years ended December 31:(in thousands)Gain on sale of businesses and long-lived assetsProceeds from sale of businesses and long-lived assets2024:Payroll and human resources services business$30,207 $23,295 Small business distributor customer list(1)1,000 — Total 2024$31,207 $23,295 2023:North American web hosting and logo design businesses – June 2023(2)$17,486 $27,880 Payroll and human resources services business10,700 15,669 Two facilities3,792 8,094 Other443 1,992 Total 2023$32,421 $53,635 2022:Australian web hosting business – May 2022(1)$15,166 $16,119 Strategic sourcing and retail packaging businesses  – April and August 2022(2)1,804 $2,200 Facility2,361 6,929 Total 2022$19,331 $25,248 (1) A note receivable was executed in conjunction with this sale. No cash proceeds were received.(2) The assets and liabilities sold were not material to our consolidated balance sheets.Exit from payroll and human resources services business – In September and December 2023, we executed agreements to transition our U.S. and Canadian payroll and human resources services customers to other service providers. The recognition of income from this business exit was based on the timing of customer conversion and retention activities, which were substantially completed during 2024. We expect to receive the remaining cash proceeds during the first quarter of 2025. Our U.S. and Canadian payroll and human resources services business comprised a reporting unit that had a goodwill balance of $7,743 as of December 31, 2023. In conjunction with our phased transition out of this businesses, we determined that this goodwill was fully impaired during 2024, and we recorded pretax goodwill impairment charges of $7,743.

NOTE 7: DERIVATIVE FINANCIAL INSTRUMENTS

As a component of our strategy to manage interest rate risk, we entered into interest rate