XML 34 R24.htm IDEA: XBRL DOCUMENT v3.22.2

Supplemental balance sheet and cash flow information (Tables)

6 Months Ended

Jun. 30, 2022

Inventories and supplies

Inventories and supplies – Inventories and supplies were comprised of the following:

(in thousands)						June 30, 2022						December 31, 2021
Raw materials						$	6,736					$	5,316
Semi-finished goods						7,004						6,708
Finished goods						22,677						21,995
Supplies						6,525						6,041
Reserves for excess and obsolete items						(5,437)						(5,132)
Inventories and supplies, net of reserves						$	37,505					$	34,928

Changes in the reserves for excess and obsolete items were as follows for the six months ended June 30, 2022 and 2021:

						Six Months Ended June 30,
(in thousands)						2022						2021
Balance, beginning of year						$	5,132					$	11,748
Amounts charged to expense						1,516						2,151
Write-offs and other						(1,211)						(8,443)
Balance, end of period						$	5,437					$	5,456

Available-for-sale debt securities

Available-for-sale debt securities – Available-for-sale debt securities included within funds held for customers were comprised of the following:

						June 30, 2022
(in thousands)						Cost						Gross unrealized gains						Gross unrealized losses						Fair value
Funds held for customers:(1)
Canadian and provincial government securities						$	9,606					$	—					$	(1,105)					$	8,501
Available-for-sale debt securities						$	9,606					$	—					$	(1,105)					$	8,501

(1) Funds held for customers, as reported on the consolidated balance sheet as of June 30, 2022, also included cash of $143,702.

						December 31, 2021
(in thousands)						Cost						Gross unrealized gains						Gross unrealized losses						Fair value
Funds held for customers:(1)
Canadian and provincial government securities						$	9,724					$	—					$	(374)					$	9,350
Canadian guaranteed investment certificate						3,957						—						—						3,957
Available-for-sale debt securities						$	13,681					$	—					$	(374)					$	13,307

(1) Funds held for customers, as reported on the consolidated balance sheet as of December 31, 2021, also included cash of $241,488.

Expected maturities of available-for-sale debt securities

Expected maturities of available-for-sale debt securities as of June 30, 2022 were as follows:

(in thousands)						Fair value
Due in one year or less						$	3,260
Due in two to five years						2,516
Due in six to ten years						2,725
Available-for-sale debt securities						$	8,501

Revenue in excess of billings

Revenue in excess of billings – Revenue in excess of billings was comprised of the following:

(in thousands)						June 30, 2022						December 31, 2021
Conditional right to receive consideration						$	22,418					$	22,780
Unconditional right to receive consideration(1)						14,077						7,613
Revenue in excess of billings						$	36,495					$	30,393

(1) Represents revenues that are earned but not currently billable under the related contract terms.

Intangibles

Intangibles – Intangibles were comprised of the following:

						June 30, 2022																		December 31, 2021
(in thousands)						Gross carrying amount						Accumulated amortization						Net carrying amount						Gross carrying amount						Accumulated amortization						Net carrying amount
Customer lists/relationships						$	495,266					$	(282,533)					$	212,733					$	493,495					$	(255,178)					$	238,317
Internal-use software						485,726						(368,129)						117,597						456,133						(342,656)						113,477
Technology-based intangibles						98,813						(42,615)						56,198						98,813						(38,553)						60,260
Partner relationships						74,205						(5,750)						68,455						73,095						(2,990)						70,105
Trade names						44,185						(25,460)						18,725						51,052						(31,277)						19,775
Software to be sold						36,900						(30,114)						6,786						36,900						(28,110)						8,790
Intangibles						$	1,235,095					$	(754,601)					$	480,494					$	1,209,488					$	(698,764)					$	510,724

Estimated future amortization expense

Based on the intangibles in service as of June 30, 2022, estimated future amortization expense is as follows:

(in thousands)						Estimated amortization expense
Remainder of 2022						$	71,410
2023						117,095
2024						77,822
2025						48,273
2026						42,398

Acquired intangibles

We purchased the following intangibles during the six months ended June 30, 2022:

(in thousands)						Amount						Weighted-average amortization period (in years)
Internal-use software						$	31,800					3
Customer lists/relationships						12,480						6
Partner relationships						1,110						3
Acquired intangibles						$	45,390					4

Goodwill

Goodwill – Changes in goodwill by reportable segment and in total were as follows for the six months ended June 30, 2022:

(in thousands)						Payments						Cloud Solutions						Promotional Solutions						Checks						Total
Balance, December 31, 2021:
Goodwill, gross						$	895,338					$	432,984					$	252,874					$	434,812					$	2,016,008
Accumulated impairment charges						—						(392,168)						(193,699)						—						(585,867)
Goodwill, net of accumulated impairment charges						895,338						40,816						59,175						434,812						1,430,141
Measurement-period adjustment (Note 6)						1,343						—						—						—						1,343
Currency translation adjustment						—						—						(27)						—						(27)
Balance, June 30, 2022						$	896,681					$	40,816					$	59,148					$	434,812					$	1,431,457
Balance, June 30, 2022:
Goodwill, gross						$	896,681					$	432,984					$	252,847					$	434,812					$	2,017,324
Accumulated impairment charges						—						(392,168)						(193,699)						—						(585,867)
Goodwill, net of accumulated impairment charges						$	896,681					$	40,816					$	59,148					$	434,812					$	1,431,457

Other non-current assets

Other non-current assets – Other non-current assets were comprised of the following:

(in thousands)						June 30, 2022						December 31, 2021
Postretirement benefit plan asset						$	90,639					$	87,019
Cloud computing arrangement implementation costs						69,008						63,806
Prepaid product discounts						48,683						56,527
Deferred contract acquisition costs(1)						21,018						17,975
Loans and notes receivable from distributors, net of allowance for credit losses(2)						14,602						20,201
Other						28,397						33,935
Other non-current assets						$	272,347					$	279,463

(1) Amortization of deferred contract acquisition costs was $3,767 for the six months ended June 30, 2022 and $2,276 for the six months ended June 30, 2021.

(2) 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 $1,059 as of June 30, 2022 and $1,317 as of December 31, 2021.

Loans and notes receivable by credit quality Indicator

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 June 30, 2022. There were no write-offs or recoveries recorded during the six months ended June 30, 2022.

						Loans and notes receivable from distributors amortized cost basis by origination year
(in thousands)						2020						2019						2018						2017						Prior						Total
Risk rating:
1-2 internal grade						$	1,203					$	457					$	4,394					$	8,649					$	1,051					$	15,754
3-4 internal grade						—						2,599						—						—						—						2,599
Loans and notes receivable						$	1,203					$	3,056					$	4,394					$	8,649					$	1,051					$	18,353

Changes in prepaid product discounts

Changes in prepaid product discounts during the six months ended June 30, 2022 and 2021 were as follows:

						Six Months Ended June 30,
(in thousands)						2022						2021
Balance, beginning of year						$	56,527					$	50,602
Additions(1)						9,413						18,689
Amortization						(17,171)						(15,137)
Other						(86)						(45)
Balance, end of period						$	48,683					$	54,109

 (1) Prepaid product discounts are generally accrued upon contract execution. Cash payments for prepaid product discounts were $12,285 for the six months ended June 30, 2022 and $19,077 for the six months ended June 30, 2021.

Accrued liabilities

Accrued liabilities – Accrued liabilities were comprised of the following:

(in thousands)						June 30, 2022						December 31, 2021
Deferred revenue(1)						$	39,960					$	52,645
Wages and payroll liabilities, including vacation						31,621						24,951
Employee cash bonuses, including sales incentives						26,102						45,006
Operating lease liabilities						13,278						14,852
Customer rebates						10,638						9,036
Prepaid product discounts due within one year						8,895						11,866
Other						65,281						58,476
Accrued liabilities						$	195,775					$	216,832

(1) $20,238 of the December 31, 2021 amount was recognized as revenue during the six months ended June 30, 2022.

Supplemental cash flow information

Supplemental cash flow information – The reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents to the consolidated balance sheets was as follows:

(in thousands)						June 30, 2022						June 30, 2021
Cash and cash equivalents						$	43,262					$	163,338
Restricted cash and restricted cash equivalents included in funds held for customers						143,702						121,992
Non-current restricted cash included in other non-current assets						2,624						2,744
Total cash, cash equivalents, restricted cash and restricted cash equivalents						$	189,588					$	288,074

Trade accounts receivable [Member]

Allowance for credit losses

Trade accounts receivable – Net trade accounts receivable was comprised of the following:

(in thousands)						June 30, 2022						December 31, 2021
Trade accounts receivable – gross						$	190,844					$	202,077
Allowance for credit losses						(4,253)						(4,130)
Trade accounts receivable – net(1)						$	186,591					$	197,947

(1) Includes unbilled receivables of $52,647 as of June 30, 2022 and $47,420 as of December 31, 2021.

Changes in the allowance for credit losses for the six months ended June 30, 2022 and 2021 were as follows:

						Six Months Ended June 30,
(in thousands)						2022						2021
Balance, beginning of year						$	4,130					$	6,428
Bad debt expense (benefit)						1,449						(1,696)
Write-offs and other						(1,326)						(1,704)
Balance, end of period						$	4,253					$	3,028

Loans and notes receivable [Member]

Allowance for credit losses

Changes in the allowance for credit losses related to loans and notes receivable from distributors were as follows for the six months ended June 30, 2022 and 2021:

						Six Months Ended June 30,
(in thousands)						2022						2021
Balance, beginning of year						$	2,830					$	3,995
Bad debt expense (benefit)						264						(658)
Exchange for customer lists						(402)						—
Balance, end of period						$	2,692					$	3,337

X

- Definition

Tabular disclosure of changes in prepaid product discounts. Prepaid product discounts are assets associated with the execution or renewal of customer contracts.

+ References

No definition available.

+ Details

Name:	dlx_ScheduleofprepaidproductdiscountsTableTextBlock
Namespace Prefix:	dlx_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of allowance for credit loss on financing receivable.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 11B
-URI http://asc.fasb.org/extlink&oid=123577603&loc=SL6953423-111524

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 50
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919249-210447

+ Details

Name:	us-gaap_AllowanceForCreditLossesOnFinancingReceivablesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of receivable, contract asset, and contract liability from contract with customer. Includes, but is not limited to, change in contract asset and contract liability.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

+ Details

Name:	us-gaap_ContractWithCustomerAssetAndLiabilityTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919230-210447

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=123577603&loc=SL6953659-111524

+ Details

Name:	us-gaap_FinancingReceivableCreditQualityIndicatorsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments.

+ References

No definition available.

+ Details

Name:	us-gaap_InvestmentsClassifiedByContractualMaturityDateTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of accrued liabilities.

+ References

No definition available.

+ Details

Name:	us-gaap_ScheduleOfAccruedLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the characteristics, including initial carrying value, residual amount, weighted average useful life, of finite-lived intangible assets acquired during the period by major class. A major class is composed of intangible assets that can be grouped together because they are similar, either by nature or by their use in the operations of the company.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 30
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275

+ Details

Name:	us-gaap_ScheduleOfAcquiredFiniteLivedIntangibleAssetsByMajorClassTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation of available-for-sale securities from cost basis to fair value.

+ References

No definition available.

+ Details

Name:	us-gaap_ScheduleOfAvailableForSaleSecuritiesReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of supplemental cash flow information for the periods presented.

+ References

No definition available.

+ Details

Name:	us-gaap_ScheduleOfCashFlowSupplementalDisclosuresTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of assets, excluding financial assets and goodwill, lacking physical substance with a finite life, by either major class or business segment.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 30
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275

+ Details

Name:	us-gaap_ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13854-109267

+ Details

Name:	us-gaap_ScheduleOfGoodwillTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the carrying amount as of the balance sheet date of merchandise, goods, commodities, or supplies held for future sale or to be used in manufacturing, servicing or production process.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(6)(c))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(6)(b))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(6)(a))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6361739&loc=d3e7789-107766

+ Details

Name:	us-gaap_ScheduleOfInventoryCurrentTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of noncurrent assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.17)
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

+ Details

Name:	us-gaap_ScheduleOfOtherAssetsNoncurrentTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the amount of amortization expense expected to be recorded in succeeding fiscal years for finite-lived intangible assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275

+ Details

Name:	us-gaap_ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Details

Name:	us-gaap_BalanceSheetLocationAxis=us-gaap_TradeAccountsReceivableMember
Namespace Prefix:
Data Type:	na
Balance Type:
Period Type:

X

- Details

Name:	us-gaap_BalanceSheetLocationAxis=us-gaap_NotesReceivableMember
Namespace Prefix:
Data Type:	na
Balance Type:
Period Type: