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BUSINESS SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2023
Segment Reporting [Abstract] |
BUSINESS SEGMENT INFORMATION | As of December 31, 2023, we operated 4 reportable business segments, generally organized by product type, 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; and payroll and disbursement services, including Deluxe Payment Exchange. •Data Solutions – This segment includes data-driven marketing solutions and hosted solutions, including digital engagement, financial institution profitability reporting and business incorporation services. This segment also included web hosting and logo design services through June 2023, when we completed the sale of these businesses (Note 6). •Promotional Solutions – This segment includes business forms, accessories, advertising specialties and promotional apparel. •Checks – This segment includes printed business and personal checks. During the first quarter of 2024, we realigned our organizational structure to better reflect our portfolio mix and offerings, and we updated our reportable segments to correspond with these changes. We will complete the segment realignment effective for the quarter ending March 31, 2024, and we will provide initial disclosures based on the realigned segments in connection with our financial results for the first quarter of 2024. We did not operate under the new segment structure during 2023, and we continued to allocate resources and assess performance based on our previous reportable segment structure. Our realigned reportable segments for the quarter ending March 31, 2024 are as follows: •Merchant Services – provides electronic credit and debit card authorization and payment systems and processing services primarily to small and medium-sized retail and service businesses. •B2B Payments – provides treasury management solutions, including remittance and lockbox processing, remote deposit capture, receivables management, payment processing and paperless treasury management, and Deluxe Payment Exchange. •Data Solutions – provides data-driven marketing solutions, including digital engagement, financial institution profitability reporting and account switching tools, and business incorporation services. •Print – provides printed personal and business checks, printed business forms, business accessories and promotional products. 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. Until the businesses were sold in June 2023, Data Solutions also had operations in portions of Europe and partners in Central and South America, and through May 2022, Data Solutions had operations in Australia. 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 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 may include, from time to time, asset impairment charges, restructuring and integration expense, 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) |  | 2023 |  | 2022 |  | 2021
Payments: |  |  |  |  |  |
Revenue |  | $ | 690,704 |  |  | $ | 678,580 |  |  | $ | 510,359 |
Adjusted EBITDA |  | 152,798 |  |  | 144,605 |  |  | 105,576 |
Data Solutions: |  |  |  |  |  |
Revenue |  | 238,817 |  |  | 267,525 |  |  | 262,310 |
Adjusted EBITDA |  | 55,700 |  |  | 68,214 |  |  | 70,172 |
Promotional Solutions: |  |  |  |  |  |
Revenue |  | 541,650 |  |  | 562,917 |  |  | 546,473 |
Adjusted EBITDA |  | 80,751 |  |  | 79,549 |  |  | 85,384 |
Checks: |  |  |  |  |  |
Revenue |  | 721,089 |  |  | 728,988 |  |  | 703,055 |
Adjusted EBITDA |  | 320,333 |  |  | 320,498 |  |  | 324,224 |
Total segments: |  |  |  |  |  |
Revenue |  | $ | 2,192,260 |  |  | $ | 2,238,010 |  |  | $ | 2,022,197 |
Adjusted EBITDA |  | 609,582 |  |  | 612,866 |  |  | 585,356 |
The following table presents a reconciliation of total segment adjusted EBITDA to consolidated income before income taxes:
(in thousands) |  | 2023 |  | 2022 |  | 2021
Total segment adjusted EBITDA |  | $ | 609,582 |  |  | $ | 612,866 |  |  | $ | 585,356 |
Corporate operations |  | (192,447) |  |  | (194,736) |  |  | (177,591) |
Depreciation and amortization |  | (169,703) |  |  | (172,552) |  |  | (148,767) |
Interest expense |  | (125,643) |  |  | (94,454) |  |  | (55,554) |
Net income attributable to non-controlling interest |  | 107 |  |  | 135 |  |  | 139 |
Restructuring and integration expense |  | (90,475) |  |  | (63,136) |  |  | (58,947) |
Share-based compensation expense |  | (20,525) |  |  | (23,676) |  |  | (29,477) |
Acquisition transaction costs |  | — |  |  | (130) |  |  | (18,913) |
Certain legal-related (expense) benefit |  | (2,195) |  |  | 730 |  |  | (2,443) |
Loss on sale of investment securities |  | (1,323) |  |  | — |  |  | — |
Gain on sale of businesses and long-lived assets |  | 32,421 |  |  | 19,331 |  |  | — |
Income before income taxes |  | $ | 39,799 |  |  | $ | 84,378 |  |  | $ | 93,803 |
The following tables present revenue disaggregated by our product and service offerings:
|  | Year Ended December 31, 2023
(in thousands) |  | Payments |  | Data Solutions |  | Promotional Solutions |  | Checks |  | Consolidated
Checks |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 721,089 |  |  | $ | 721,089 |
Mer chant services and other payment solutions |  | 450,384 |  |  | — |  |  | — |  |  | — |  |  | 450,384 |
Marketing and promotional solutions |  | — |  |  | — |  |  | 278,200 |  |  | — |  |  | 278,200 |
Forms and other products |  | — |  |  | — |  |  | 263,450 |  |  | — |  |  | 263,450 |
Treasury management solutions |  | 240,320 |  |  | — |  |  | — |  |  | — |  |  | 240,320 |
Data-driven marketing solutions |  | — |  |  | 192,656 |  |  | — |  |  | — |  |  | 192,656 |
Web and hosted solutions |  | — |  |  | 46,161 |  |  | — |  |  | — |  |  | 46,161 |
Total revenue |  | $ | 690,704 |  |  | $ | 238,817 |  |  | $ | 541,650 |  |  | $ | 721,089 |  |  | $ | 2,192,260 |
|  | Year Ended December 31, 2022
(in thousands) |  | Payments |  | Data Solutions |  | Promotional Solutions |  | Checks |  | Consolidated
Checks |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 728,988 |  |  | $ | 728,988 |
Merchant services and other payment solutions |  | 437,395 |  |  | — |  |  | — |  |  | — |  |  | 437,395 |
Marketing and promotional solutions |  | — |  |  | — |  |  | 272,997 |  |  | — |  |  | 272,997 |
Forms and other products |  | — |  |  | — |  |  | 289,920 |  |  | — |  |  | 289,920 |
Treasury management solutions |  | 241,185 |  |  | — |  |  | — |  |  | — |  |  | 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) |  | Payments |  | Data Solutions |  | Promotional Solutions |  | Checks |  | Consolidated
Checks |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 703,055 |  |  | $ | 703,055 |
Merchant services and other payment solutions |  | 276,118 |  |  | — |  |  | — |  |  | — |  |  | 276,118 |
Marketing and promotional solutions |  | — |  |  | — |  |  | 249,480 |  |  | — |  |  | 249,480 |
Forms and other products |  | — |  |  | — |  |  | 296,993 |  |  | — |  |  | 296,993 |
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 |
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 material to our consolidated financial position.
(in thousands) |  | Payments |  | Data Solutions |  | Promotional Solutions |  | Checks |  | Consolidated
Year ended December 31, 2023: |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 640,769 |  |  | $ | 233,090 |  |  | $ | 518,929 |  |  | $ | 694,864 |  |  | $ | 2,087,652 |
Foreign, primarily Canada |  | 49,935 |  |  | 5,727 |  |  | 22,721 |  |  | 26,225 |  |  | 104,608 |
Total revenue |  | $ | 690,704 |  |  | $ | 238,817 |  |  | $ | 541,650 |  |  | $ | 721,089 |  |  | $ | 2,192,260 |
Year ended December 31, 2022: |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 634,945 |  |  | $ | 248,227 |  |  | $ | 537,643 |  |  | $ | 700,170 |  |  | $ | 2,120,985 |
Foreign, primarily Canada and Australia |  | 43,635 |  |  | 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 Australia |  | 41,257 |  |  | 35,219 |  |  | 23,507 |  |  | 24,826 |  |  | 124,809 |
Total revenue |  | $ | 510,359 |  |  | $ | 262,310 |  |  | $ | 546,473 |  |  | $ | 703,055 |  |  | $ | 2,022,197 |

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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