Company: DLX
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000027996-25-000189
Chunk: 66

Company: DELUXE CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 66
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 September 30, 2024.(3) Amount includes the non-current portion of loans and notes receivable. The current portion of these receivables is included in other current assets on the consolidated balance sheets and was $1,640 as of September 30, 2025 and $1,753 as of December 31, 2024. The allowance for credit losses was not material in either period.We categorize loans and notes receivable into risk categories based on information about the ability of borrowers to service their debt, including current financial information, historical payment experience, current economic trends, and other factors. The highest quality receivables are assigned a 1-2 internal grade. Those that have a potential weakness requiring management's attention are assigned a 3-4 internal grade. Past due receivables and those on non-accrual status were not material as of September 30, 2025 or December 31, 2024.The following table presents loans and notes receivable from distributors, including the current portion, by credit quality indicator and by year of origination, as of September 30, 2025. There were no write-offs or recoveries recorded during the nine months ended September 30, 2025.Loans and notes receivable from distributors amortized cost basis by origination year(in thousands)202420232020PriorTotalRisk rating:1-2 internal grade$842 $282 $757 $9,899 $11,780 3-4 internal grade— — — — — Loans and notes receivable$842 $282 $757 $9,899 $11,780 

11

DELUXE CORPORATIONCONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(dollars in thousands, except per share amounts)

Accrued liabilities – Accrued liabilities were comprised of the following:(in thousands)September 30,2025December 31,2024Employee cash bonuses, including sales incentives$34,953 $33,422 Deferred revenue(1)27,419 31,605 Interest14,420 9,493 Customer rebates13,997 10,100 Consideration payable for asset purchases13,058 618 Operating lease liabilities12,006 12,406 Wages and payroll liabilities, including vacation7,796 10,321 Prepaid product discounts3,973 2,583 Restruct