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BUSINESS SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2021
Segment Reporting [Abstract] |
BUSINESS SEGMENT INFORMATION | We operate 4 reportable business segments, generally organized by product type, as follows: •Payments – This segment includes our treasury management solutions, including remittance and lockbox processing, remote deposit capture, receivables management, payment processing and paperless treasury management; merchant in-store, online and mobile payment solutions; payroll and disbursement services, including Deluxe Payment Exchange; and fraud and security services. •Cloud Solutions – This segment includes web hosting and design services, data-driven marketing solutions and hosted solutions, including digital engagement, logo design, financial institution profitability reporting and business incorporation services. •Promotional Solutions – This segment includes business forms, accessories, advertising specialties, promotional apparel and retail packaging. •Checks – This segment includes printed business and personal checks. The accounting policies of the segments are the same as those described in Note 1. We allocate corporate costs for our shared services functions to our business segments when the costs are directly attributable to a segment. This includes certain sales and marketing, human resources, supply chain, real estate, finance, information technology and legal costs. Costs that are not directly attributable to a business segment are reported as Corporate operations and consist primarily of marketing, accounting, information technology, facilities, executive management and legal, tax and treasury costs that support the corporate function. Corporate operations also includes other income. All of our segments operate primarily in the U.S., with some operations in Canada. In addition, Cloud Solutions has operations in Australia and portions of Europe, as well as partners in Central and South America. No single customer accounted for more than 10% of consolidated revenue during the past 3 years. Our chief operating decision maker (i.e., our Chief Executive Officer) reviews earnings before interest, taxes, depreciation and amortization (EBITDA) on an adjusted basis for each segment when deciding how to allocate resources and to assess segment operating performance. Adjusted EBITDA for each segment excludes depreciation and amortization expense, interest expense, income tax expense and certain other amounts, which may include, from time to time: asset impairment charges; restructuring, integration and other costs; CEO transition costs; share-based compensation expense; acquisition transaction costs; certain legal-related expense; and gains or losses on sales of businesses and customer lists. Our Chief Executive Officer does not review segment asset information when making investment or operating decisions regarding our reportable business segments. Our segment information for the years ended December 31 was as follows:
(in thousands) |  | 2021 |  | 2020 |  | 2019
Payments: |  |  |  |  |  |
Revenue |  | $ | 510,359 |  |  | $ | 301,901 |  |  | $ | 269,573 |
Adjusted EBITDA |  | 105,576 |  |  | 68,117 |  |  | 74,384 |
Cloud Solutions: |  |  |  |  |  |
Revenue |  | 262,310 |  |  | 252,773 |  |  | 318,383 |
Adjusted EBITDA |  | 70,172 |  |  | 61,580 |  |  | 77,199 |
Promotional Solutions: |  |  |  |  |  |
Revenue |  | 546,473 |  |  | 529,649 |  |  | 640,892 |
Adjusted EBITDA |  | 85,384 |  |  | 66,620 |  |  | 101,293 |
Checks: |  |  |  |  |  |
Revenue |  | 703,055 |  |  | 706,458 |  |  | 779,867 |
Adjusted EBITDA |  | 324,224 |  |  | 341,705 |  |  | 402,662 |
Total segments: |  |  |  |  |  |
Revenue |  | $ | 2,022,197 |  |  | $ | 1,790,781 |  |  | $ | 2,008,715 |
Adjusted EBITDA |  | 585,356 |  |  | 538,022 |  |  | 655,538 |
The following table presents a reconciliation of total segment adjusted EBITDA to consolidated income (loss) before income taxes:
(in thousands) |  | 2021 |  | 2020 |  | 2019
Total segment adjusted EBITDA |  | $ | 585,356 |  |  | $ | 538,022 |  |  | $ | 655,538 |
Corporate operations |  | (177,591) |  |  | (173,480) |  |  | (174,672) |
Depreciation and amortization |  | (148,767) |  |  | (110,792) |  |  | (126,036) |
Interest expense |  | (55,554) |  |  | (23,140) |  |  | (34,682) |
Net income attributable to non-controlling interest |  | 139 |  |  | 91 |  |  | — |
Asset impairment charges |  | — |  |  | (101,749) |  |  | (421,090) |
Restructuring, integration and other costs |  | (58,947) |  |  | (80,665) |  |  | (79,511) |
CEO transition costs(1) |  | — |  |  | 30 |  |  | (9,390) |
Share-based compensation expense |  | (29,477) |  |  | (21,824) |  |  | (19,138) |
Acquisition transaction costs |  | (18,913) |  |  | (8) |  |  | (215) |
Certain legal-related (expense) benefit |  | (2,443) |  |  | 2,164 |  |  | (6,420) |
Loss on sales of businesses and customer lists |  | — |  |  | (1,846) |  |  | (124) |
Income (loss) before income taxes |  | $ | 93,803 |  |  | $ | 26,803 |  |  | $ | (215,740) |
(1) In 2019, CEO transition costs includes share-based compensation expense related to the modification of certain awards in conjunction with our CEO transition (Note 9). The following tables present revenue disaggregated by our product and service offerings:
|  | Year Ended December 31, 2021
(in thousands) |  | Payments |  | Cloud Solutions |  | Promotional Solutions |  | Checks |  | Consolidated
Checks |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 703,055 |  |  | $ | 703,055 |
Forms and other products |  | — |  |  | — |  |  | 296,993 |  |  | — |  |  | 296,993 |
Merchant services and other payment solutions |  | 276,118 |  |  | — |  |  | — |  |  | — |  |  | 276,118 |
Marketing and promotional solutions |  | — |  |  | — |  |  | 249,480 |  |  | — |  |  | 249,480 |
Treasury management solutions |  | 234,241 |  |  | — |  |  | — |  |  | — |  |  | 234,241 |
Data-driven marketing solutions |  | — |  |  | 150,772 |  |  | — |  |  | — |  |  | 150,772 |
Web and hosted solutions |  | — |  |  | 111,538 |  |  | — |  |  | — |  |  | 111,538 |
Total revenue |  | $ | 510,359 |  |  | $ | 262,310 |  |  | $ | 546,473 |  |  | $ | 703,055 |  |  | $ | 2,022,197 |
|  | Year Ended December 31, 2020
(in thousands) |  | Payments |  | Cloud Solutions |  | Promotional Solutions |  | Checks |  | Consolidated
Checks |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 706,458 |  |  | $ | 706,458 |
Forms and other products |  | — |  |  | — |  |  | 316,245 |  |  | — |  |  | 316,245 |
Merchant services and other payment solutions |  | 75,796 |  |  | — |  |  | — |  |  | — |  |  | 75,796 |
Marketing and promotional solutions |  | — |  |  | — |  |  | 213,404 |  |  | — |  |  | 213,404 |
Treasury management solutions |  | 226,105 |  |  | — |  |  | — |  |  | — |  |  | 226,105 |
Data-driven marketing solutions |  | — |  |  | 119,155 |  |  | — |  |  | — |  |  | 119,155 |
Web and hosted solutions |  | — |  |  | 133,618 |  |  | — |  |  | — |  |  | 133,618 |
Total revenue |  | $ | 301,901 |  |  | $ | 252,773 |  |  | $ | 529,649 |  |  | $ | 706,458 |  |  | $ | 1,790,781 |
|  | Year Ended December 31, 2019
(in thousands) |  | Payments |  | Cloud Solutions |  | Promotional Solutions |  | Checks |  | Consolidated
Checks |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 779,867 |  |  | $ | 779,867 |
Forms and other products |  | — |  |  | — |  |  | 348,757 |  |  | — |  |  | 348,757 |
Merchant services and other payment solutions |  | 76,046 |  |  | — |  |  | — |  |  | — |  |  | 76,046 |
Marketing and promotional solutions |  | — |  |  | — |  |  | 292,135 |  |  | — |  |  | 292,135 |
Treasury management solutions |  | 193,527 |  |  | — |  |  | — |  |  | — |  |  | 193,527 |
Data-driven marketing solutions |  | — |  |  | 162,286 |  |  | — |  |  | — |  |  | 162,286 |
Web and hosted solutions |  | — |  |  | 156,097 |  |  | — |  |  | — |  |  | 156,097 |
Total revenue |  | $ | 269,573 |  |  | $ | 318,383 |  |  | $ | 640,892 |  |  | $ | 779,867 |  |  | $ | 2,008,715 |
The following table presents revenue disaggregated by geography, based on where items are shipped or services are performed. Substantially all of our long-lived assets reside in the U.S. Long-lived assets of our foreign subsidiaries are located primarily in Canada and Australia are not significant to our consolidated financial position.
(in thousands) |  | Payments |  | Cloud Solutions |  | Promotional Solutions |  | Checks |  | Consolidated
Year ended December 31, 2021: |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 469,102 |  |  | $ | 227,091 |  |  | $ | 522,966 |  |  | $ | 678,229 |  |  | $ | 1,897,388 |
Foreign, primarily Canada and Australia |  | 41,257 |  |  | 35,219 |  |  | 23,507 |  |  | 24,826 |  |  | 124,809 |
Total revenue |  | $ | 510,359 |  |  | $ | 262,310 |  |  | $ | 546,473 |  |  | $ | 703,055 |  |  | $ | 2,022,197 |
Year ended December 31, 2020: |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 266,920 |  |  | $ | 220,699 |  |  | $ | 506,240 |  |  | $ | 684,328 |  |  | $ | 1,678,187 |
Foreign, primarily Canada and Australia |  | 34,981 |  |  | 32,074 |  |  | 23,409 |  |  | 22,130 |  |  | 112,594 |
Total revenue |  | $ | 301,901 |  |  | $ | 252,773 |  |  | $ | 529,649 |  |  | $ | 706,458 |  |  | $ | 1,790,781 |
Year ended December 31, 2019: |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 233,152 |  |  | $ | 283,695 |  |  | $ | 613,830 |  |  | $ | 757,359 |  |  | $ | 1,888,036 |
Foreign, primarily Canada and Australia |  | 36,421 |  |  | 34,688 |  |  | 27,062 |  |  | 22,508 |  |  | 120,679 |
Total revenue |  | $ | 269,573 |  |  | $ | 318,383 |  |  | $ | 640,892 |  |  | $ | 779,867 |  |  | $ | 2,008,715 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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