XML 40 R26.htm IDEA: XBRL DOCUMENT v3.22.0.1
BUSINESS SEGMENT INFORMATION
 12 Months Ended
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)202120202019
Payments:
Revenue$510,359 $301,901 $269,573 
Adjusted EBITDA105,576 68,117 74,384 
Cloud Solutions:
Revenue262,310 252,773 318,383 
Adjusted EBITDA70,172 61,580 77,199 
Promotional Solutions:
Revenue546,473 529,649 640,892 
Adjusted EBITDA85,384 66,620 101,293 
Checks:
Revenue703,055 706,458 779,867 
Adjusted EBITDA324,224 341,705 402,662 
Total segments:
Revenue$2,022,197 $1,790,781 $2,008,715 
Adjusted EBITDA585,356 538,022 655,538 

The following table presents a reconciliation of total segment adjusted EBITDA to consolidated income (loss) before income taxes:

(in thousands)202120202019
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 interest139 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)PaymentsCloud SolutionsPromotional SolutionsChecksConsolidated
Checks$— $— $— $703,055 $703,055 
Forms and other products— — 296,993 — 296,993 
Merchant services and other payment solutions276,118 — — — 276,118 
Marketing and promotional solutions— — 249,480 — 249,480 
Treasury management solutions234,241 — — — 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 $2,022,197 
Year Ended December 31, 2020
(in thousands)PaymentsCloud SolutionsPromotional SolutionsChecksConsolidated
Checks$— $— $— $706,458 $706,458 
Forms and other products— — 316,245 — 316,245 
Merchant services and other payment solutions75,796 — — — 75,796 
Marketing and promotional solutions— — 213,404 — 213,404 
Treasury management solutions226,105 — — — 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 $1,790,781 
Year Ended December 31, 2019
(in thousands)PaymentsCloud SolutionsPromotional SolutionsChecksConsolidated
Checks$— $— $— $779,867 $779,867 
Forms and other products— — 348,757 — 348,757 
Merchant services and other payment solutions76,046 — — — 76,046 
Marketing and promotional solutions— — 292,135 — 292,135 
Treasury management solutions193,527 — — — 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)PaymentsCloud SolutionsPromotional SolutionsChecksConsolidated
Year ended December 31, 2021:
U.S.$469,102 $227,091 $522,966 $678,229 $1,897,388 
Foreign, primarily Canada and Australia41,257 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 Australia34,981 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 Australia36,421 34,688 27,062 22,508 120,679 
Total revenue$269,573 $318,383 $640,892 $779,867 $2,008,715