XML 44 R25.htm IDEA: XBRL DOCUMENT v3.22.4
BUSINESS SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
BUSINESS SEGMENT INFORMATION
We operate 4 reportable business segments, generally organized by product type. In conjunction with the anticipated sale of our North American web hosting and logo businesses in 2023, we changed the name of our Cloud Solutions segment to Data Solutions. Information regarding this pending sale can be found in Note 6. Our segments are as follows:

•Payments – This segment includes our merchant in-store, online and mobile payment solutions; treasury management solutions, including remittance and lockbox processing, remote deposit capture, receivables management, payment processing and paperless treasury management; payroll and disbursement services, including Deluxe Payment Exchange; and fraud and security services.

•Data Solutions – This segment includes data-driven marketing solutions; hosted solutions, including digital engagement, logo design, financial institution profitability reporting and business incorporation services; and web hosting and design services.

•Promotional Solutions – This segment includes business forms, accessories, advertising specialties and promotional apparel.

•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, Data Solutions has operations in portions of Europe, as well as partners in Central and South America, and had operations in Australia until May 2022 when this business was sold (Note 6). 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, net income attributable to non-controlling interest, income tax expense and certain other amounts, which include, when applicable: asset impairment charges; restructuring and integration costs; CEO transition costs; share-based compensation expense; acquisition transaction costs; certain legal-related expense; and gains or losses on sales of businesses and long-lived assets. 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)202220212020
Payments:
Revenue$678,580 $510,359 $301,901 
Adjusted EBITDA144,605 105,576 68,117 
Data Solutions:
Revenue267,525 262,310 252,773 
Adjusted EBITDA68,214 70,172 61,580 
Promotional Solutions:
Revenue562,917 546,473 529,649 
Adjusted EBITDA79,549 85,384 66,620 
Checks:
Revenue728,988 703,055 706,458 
Adjusted EBITDA320,498 324,224 341,705 
Total segments:
Revenue$2,238,010 $2,022,197 $1,790,781 
Adjusted EBITDA612,866 585,356 538,022 
The following table presents a reconciliation of total segment adjusted EBITDA to consolidated income before income taxes:

(in thousands)202220212020
Total segment adjusted EBITDA$612,866 $585,356 $538,022 
Corporate operations(194,736)(177,591)(173,480)
Depreciation and amortization(172,552)(148,767)(110,792)
Interest expense(94,454)(55,554)(23,140)
Net income attributable to non-controlling interest135 139 91 
Asset impairment charges— — (101,749)
Restructuring and integration costs(63,136)(58,947)(80,665)
CEO transition costs— — 30 
Share-based compensation expense(23,676)(29,477)(21,824)
Acquisition transaction costs(130)(18,913)(8)
Certain legal-related benefit (expense)730 (2,443)2,164 
Gain (loss) on sale of businesses and facility19,331 — (1,846)
Income before income taxes$84,378 $93,803 $26,803 
The following tables present revenue disaggregated by our product and service offerings:
Year Ended December 31, 2022
(in thousands)PaymentsData
Solutions		Promotional SolutionsChecksConsolidated
Checks$— $— $— $728,988 $728,988 
Merchant services and other payment solutions437,395 — — — 437,395 
Forms and other products— — 289,920 — 289,920 
Marketing and promotional solutions— — 272,997 — 272,997 
Treasury management solutions241,185 — — — 241,185 
Data-driven marketing solutions— 177,598 — — 177,598 
Web and hosted solutions
— 89,927 — — 89,927 
Total revenue$678,580 $267,525 $562,917 $728,988 $2,238,010 
Year Ended December 31, 2021
(in thousands)PaymentsData
Solutions		Promotional SolutionsChecksConsolidated
Checks$— $— $— $703,055 $703,055 
Merchant services and other payment solutions276,118 — — — 276,118 
Forms and other products— — 296,993 — 296,993 
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 $2,022,197 
Year Ended December 31, 2020
(in thousands)PaymentsData
Solutions		Promotional SolutionsChecksConsolidated
Checks$— $— $— $706,458 $706,458 
Merchant services and other payment solutions75,796 — — — 75,796 
Forms and other products— — 316,245 — 316,245 
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 
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 are not significant to our consolidated financial position.

(in thousands)PaymentsData
Solutions		Promotional SolutionsChecksConsolidated
Year ended December 31, 2022:
U.S.$634,945 $248,227 $537,643 $700,170 $2,120,985 
Foreign, primarily Canada43,635 19,298 25,274 28,818 117,025 
Total revenue$678,580 $267,525 $562,917 $728,988 $2,238,010 
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