Document
false--12-31Q220180000027996Large Accelerated FilerDELUXE CORP15300001113580200003631430000039300046400034306000263610003391300016450001.001.005000000005000000002021-11-302023-03-21truetrue 0000027996 2018-01-01 2018-06-30 0000027996 us-gaap:AccountingStandardsUpdate201707Member 2018-01-01 2018-06-30 0000027996 us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 2018-06-30 0000027996 2018-07-18 0000027996 2017-12-31 0000027996 2018-06-30 0000027996 2017-01-01 2017-06-30 0000027996 2017-04-01 2017-06-30 0000027996 us-gaap:OperatingExpenseMember 2018-04-01 2018-06-30 0000027996 us-gaap:ProductMember 2017-01-01 2017-06-30 0000027996 us-gaap:ServiceMember 2018-04-01 2018-06-30 0000027996 us-gaap:ServiceMember 2018-01-01 2018-06-30 0000027996 2018-04-01 2018-06-30 0000027996 us-gaap:ServiceMember 2017-01-01 2017-06-30 0000027996 us-gaap:OperatingExpenseMember 2017-01-01 2017-06-30 0000027996 us-gaap:ProductMember 2017-04-01 2017-06-30 0000027996 us-gaap:ServiceMember 2017-04-01 2017-06-30 0000027996 us-gaap:ProductMember 2018-04-01 2018-06-30 0000027996 us-gaap:ProductMember 2018-01-01 2018-06-30 0000027996 us-gaap:OperatingExpenseMember 2017-04-01 2017-06-30 0000027996 us-gaap:OperatingExpenseMember 2018-01-01 2018-06-30 0000027996 us-gaap:CommonStockMember 2018-01-01 2018-06-30 0000027996 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000027996 us-gaap:CommonStockMember 2018-06-30 0000027996 us-gaap:RetainedEarningsMember 2018-06-30 0000027996 us-gaap:RetainedEarningsMember 2018-01-01 2018-06-30 0000027996 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-06-30 0000027996 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0000027996 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0000027996 us-gaap:RetainedEarningsMember 2017-12-31 0000027996 dlx:AccountingStandardsUpdateNo.201802Member us-gaap:RetainedEarningsMember 2018-06-30 0000027996 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0000027996 dlx:AccountingStandardsUpdateNo.201802Member us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0000027996 us-gaap:CommonStockMember 2017-12-31 0000027996 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-06-30 0000027996 us-gaap:AccountingStandardsUpdate201409Member us-gaap:RetainedEarningsMember 2018-06-30 0000027996 us-gaap:AccountingStandardsUpdate201409Member 2018-06-30 0000027996 dlx:AccountingStandardsUpdateNo.201802Member 2018-06-30 0000027996 2016-12-31 0000027996 2017-06-30 0000027996 us-gaap:ServiceMember us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-01-01 2018-06-30 0000027996 us-gaap:AccountingStandardsUpdate201409Member us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-01-01 2018-06-30 0000027996 us-gaap:ServiceMember us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-04-01 2018-06-30 0000027996 us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-04-01 2018-06-30 0000027996 us-gaap:ServiceMember us-gaap:AccountingStandardsUpdate201409Member us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-04-01 2018-06-30 0000027996 us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-01-01 2018-06-30 0000027996 us-gaap:AccountingStandardsUpdate201409Member us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-04-01 2018-06-30 0000027996 us-gaap:ServiceMember us-gaap:AccountingStandardsUpdate201409Member us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-01-01 2018-06-30 0000027996 srt:MaximumMember 2018-01-01 2018-06-30 0000027996 dlx:VariableconsiderationMember 2017-01-01 2017-12-31 0000027996 srt:MinimumMember 2018-01-01 2018-06-30 0000027996 us-gaap:AccountingStandardsUpdate201616Member us-gaap:RetainedEarningsMember 2018-01-01 0000027996 srt:MaximumMember 2018-06-30 0000027996 dlx:VariableconsiderationMember 2018-01-01 2018-06-30 0000027996 dlx:AccountingStandardsUpdateNo.201805Member 2018-04-01 2018-06-30 0000027996 dlx:AccountingStandardsUpdateNo.201805Member 2018-01-01 2018-06-30 0000027996 us-gaap:AccountingStandardsUpdate201601Member 2018-01-01 2018-06-30 0000027996 srt:MinimumMember 2018-06-30 0000027996 us-gaap:AccountingStandardsUpdate201409Member us-gaap:AssetsTotalMember 2018-01-01 0000027996 us-gaap:AccountingStandardsUpdate201409Member dlx:TotalcurrentassetsMember 2018-01-01 0000027996 us-gaap:AccountingStandardsUpdate201409Member us-gaap:OtherNoncurrentAssetsMember 2018-01-01 0000027996 us-gaap:AccountingStandardsUpdate201409Member us-gaap:RetainedEarningsMember 2018-01-01 0000027996 us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 0000027996 us-gaap:AccountingStandardsUpdate201409Member dlx:DeferredincometaxliabilitiesMember 2018-01-01 0000027996 us-gaap:AccountingStandardsUpdate201409Member dlx:TotalliabilitiesandshareholdersequityMember 2018-01-01 0000027996 us-gaap:AccountingStandardsUpdate201409Member us-gaap:OtherCurrentAssetsMember 2018-01-01 0000027996 us-gaap:ServiceMember srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member 2017-04-01 2017-06-30 0000027996 us-gaap:ServiceMember srt:ScenarioPreviouslyReportedMember us-gaap:AccountingStandardsUpdate201707Member 2017-04-01 2017-06-30 0000027996 us-gaap:ServiceMember srt:ScenarioPreviouslyReportedMember us-gaap:AccountingStandardsUpdate201707Member 2017-01-01 2017-06-30 0000027996 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member 2017-01-01 2017-06-30 0000027996 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member 2017-04-01 2017-06-30 0000027996 us-gaap:ProductMember srt:ScenarioPreviouslyReportedMember us-gaap:AccountingStandardsUpdate201707Member 2017-01-01 2017-06-30 0000027996 srt:ScenarioPreviouslyReportedMember us-gaap:AccountingStandardsUpdate201707Member 2017-04-01 2017-06-30 0000027996 us-gaap:ProductMember srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member 2017-04-01 2017-06-30 0000027996 srt:ScenarioPreviouslyReportedMember us-gaap:AccountingStandardsUpdate201707Member 2017-01-01 2017-06-30 0000027996 us-gaap:ProductMember srt:ScenarioPreviouslyReportedMember us-gaap:AccountingStandardsUpdate201707Member 2017-04-01 2017-06-30 0000027996 us-gaap:ProductMember srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member 2017-01-01 2017-06-30 0000027996 us-gaap:ServiceMember srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member 2017-01-01 2017-06-30 0000027996 us-gaap:AccountingStandardsUpdate201409Member us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-06-30 0000027996 us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-06-30 0000027996 dlx:FundsHeldForCustomersMember us-gaap:GuaranteedInvestmentContractMember 2018-06-30 0000027996 country:US dlx:FundsHeldForCustomersMember us-gaap:MoneyMarketFundsMember 2018-06-30 0000027996 dlx:FundsHeldForCustomersMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2018-06-30 0000027996 dlx:FundsHeldForCustomersMember 2018-06-30 0000027996 dlx:A2018acquisitionsMember us-gaap:TradeNamesMember 2018-01-01 2018-06-30 0000027996 us-gaap:CustomerRelatedIntangibleAssetsMember 2018-01-01 2018-06-30 0000027996 dlx:InternaluseComputerSoftwareIntangibleAssetMember 2018-01-01 2018-06-30 0000027996 dlx:A2018acquisitionsMember us-gaap:TechnologyBasedIntangibleAssetsMember 2018-01-01 2018-06-30 0000027996 country:US dlx:FundsHeldForCustomersMember us-gaap:MoneyMarketFundsMember 2017-12-31 0000027996 dlx:FundsHeldForCustomersMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2017-12-31 0000027996 dlx:FundsHeldForCustomersMember 2017-12-31 0000027996 dlx:FundsHeldForCustomersMember us-gaap:GuaranteedInvestmentContractMember 2017-12-31 0000027996 dlx:SmallBusinessDistributorsMember 2017-12-31 0000027996 us-gaap:FairValueMeasurementsNonrecurringMember 2017-04-01 2017-06-30 0000027996 dlx:AssetpurchaseMember us-gaap:CustomerRelatedIntangibleAssetsMember 2018-01-01 2018-06-30 0000027996 us-gaap:FairValueMeasurementsNonrecurringMember 2017-01-01 2017-03-31 0000027996 us-gaap:CustomerRelatedIntangibleAssetsMember 2018-01-01 2018-03-31 0000027996 dlx:ProvidersofprintedandpromotionalproductsMember 2017-12-31 0000027996 us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember dlx:SmallBusinessDistributorsMember 2018-01-01 2018-03-31 0000027996 us-gaap:FairValueMeasurementsNonrecurringMember 2017-01-01 2017-06-30 0000027996 us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember dlx:ProvidersofprintedandpromotionalproductsMember 2018-04-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:FinancialServicesMember 2017-12-31 0000027996 us-gaap:OperatingSegmentsMember dlx:DirectChecksMember 2017-12-31 0000027996 us-gaap:OperatingSegmentsMember dlx:DirectChecksMember 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:SmallBusinessServicesMember 2017-12-31 0000027996 us-gaap:OperatingSegmentsMember dlx:FinancialServicesMember 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:A2017acquisitionsMember dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:SmallBusinessServicesMember 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:A2017acquisitionsMember dlx:FinancialServicesMember 2018-01-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:A2018acquisitionsMember dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 us-gaap:TradeNamesMember 2017-12-31 0000027996 us-gaap:TechnologyBasedIntangibleAssetsMember 2017-12-31 0000027996 us-gaap:TradeNamesMember 2018-06-30 0000027996 us-gaap:TradeNamesMember 2017-12-31 0000027996 us-gaap:TradeNamesMember 2018-06-30 0000027996 dlx:SoftwareforResaleMember 2018-06-30 0000027996 us-gaap:OtherIntangibleAssetsMember 2017-12-31 0000027996 dlx:InternaluseComputerSoftwareIntangibleAssetMember 2018-06-30 0000027996 dlx:InternaluseComputerSoftwareIntangibleAssetMember 2017-12-31 0000027996 us-gaap:OtherIntangibleAssetsMember 2018-06-30 0000027996 dlx:SoftwareforResaleMember 2017-12-31 0000027996 us-gaap:CustomerRelatedIntangibleAssetsMember 2017-12-31 0000027996 us-gaap:TechnologyBasedIntangibleAssetsMember 2018-06-30 0000027996 us-gaap:CustomerRelatedIntangibleAssetsMember 2018-06-30 0000027996 us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember 2018-06-30 0000027996 us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember 2017-12-31 0000027996 dlx:ProvidersofprintedandpromotionalproductsMember 2018-06-30 0000027996 dlx:SmallBusinessDistributorsMember 2018-06-30 0000027996 us-gaap:CustomerRelatedIntangibleAssetsMember 2018-06-30 0000027996 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-06-30 0000027996 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-06-30 0000027996 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-06-30 0000027996 us-gaap:AccumulatedTranslationAdjustmentMember 2017-12-31 0000027996 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2017-12-31 0000027996 us-gaap:AccumulatedTranslationAdjustmentMember 2018-01-01 2018-06-30 0000027996 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-01-01 2018-06-30 0000027996 dlx:AccountingStandardsUpdateNo.201802Member us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-06-30 0000027996 us-gaap:AccumulatedTranslationAdjustmentMember 2018-06-30 0000027996 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-12-31 0000027996 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2017-04-01 2017-06-30 0000027996 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-04-01 2017-06-30 0000027996 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-01-01 2017-06-30 0000027996 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2017-01-01 2017-06-30 0000027996 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2018-01-01 2018-06-30 0000027996 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2017-04-01 2017-06-30 0000027996 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-04-01 2018-06-30 0000027996 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2018-04-01 2018-06-30 0000027996 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2018-01-01 2018-06-30 0000027996 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2017-01-01 2017-06-30 0000027996 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2018-04-01 2018-06-30 0000027996 dlx:ColoCrossingMember dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 dlx:PendingtreasurymanagementacquisitionMember us-gaap:ScenarioForecastMember 2018-01-01 2018-12-31 0000027996 dlx:A2017acquisitionsMember 2018-01-01 2018-06-30 0000027996 dlx:SmallBusinessDistributorsMember dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 dlx:A2017acquisitionsMember dlx:InternaluseComputerSoftwareIntangibleAssetMember 2018-01-01 2018-06-30 0000027996 dlx:LogomixInc.Member dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 dlx:A2017acquisitionsMember 2017-01-01 2017-06-30 0000027996 dlx:A2017acquisitionsMember us-gaap:CustomerRelatedIntangibleAssetsMember 2018-01-01 2018-06-30 0000027996 dlx:A2018acquisitionsMember 2018-01-01 2018-06-30 0000027996 dlx:A2018acquisitionsMember us-gaap:CustomerRelatedIntangibleAssetsMember 2018-01-01 2018-06-30 0000027996 dlx:A2018acquisitionsMember 2018-06-30 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel2Member 2018-06-30 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2018-06-30 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2018-06-30 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueMeasurementsRecurringMember dlx:ForeigndebtsecuritiesMember 2018-06-30 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2018-06-30 0000027996 dlx:FundsHeldForCustomersMember dlx:ForeigndebtsecuritiesMember 2018-06-30 0000027996 us-gaap:FairValueMeasurementsRecurringMember 2018-06-30 0000027996 us-gaap:FairValueInputsLevel1Member 2018-06-30 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember dlx:ForeigndebtsecuritiesMember 2018-06-30 0000027996 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-06-30 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2018-06-30 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember dlx:ForeigndebtsecuritiesMember 2018-06-30 0000027996 dlx:FundsHeldForCustomersMember us-gaap:MoneyMarketFundsMember 2018-06-30 0000027996 us-gaap:FairValueInputsLevel3Member 2018-06-30 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel3Member 2018-06-30 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel1Member 2018-06-30 0000027996 us-gaap:FairValueInputsLevel2Member 2018-06-30 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember dlx:ForeigndebtsecuritiesMember 2018-06-30 0000027996 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-06-30 0000027996 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-06-30 0000027996 us-gaap:CustomerRelatedIntangibleAssetsMember us-gaap:FairValueMeasurementsNonrecurringMember 2018-01-01 2018-03-31 0000027996 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember 2017-06-30 0000027996 us-gaap:FairValueMeasurementsRecurringMember 2018-01-01 2018-06-30 0000027996 us-gaap:CustomerRelatedIntangibleAssetsMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember 2018-03-31 0000027996 dlx:FundsHeldForCustomersMember us-gaap:GuaranteedInvestmentContractMember 2018-01-01 2018-06-30 0000027996 us-gaap:FairValueInputsLevel2Member 2017-12-31 0000027996 us-gaap:FairValueInputsLevel3Member 2017-12-31 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2017-12-31 0000027996 us-gaap:FairValueInputsLevel1Member 2017-12-31 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel2Member 2017-12-31 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2017-12-31 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel1Member 2017-12-31 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember dlx:ForeigndebtsecuritiesMember 2017-12-31 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2017-12-31 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember dlx:ForeigndebtsecuritiesMember 2017-12-31 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel3Member 2017-12-31 0000027996 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2017-12-31 0000027996 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2017-12-31 0000027996 dlx:FundsHeldForCustomersMember us-gaap:MoneyMarketFundsMember 2017-12-31 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember dlx:ForeigndebtsecuritiesMember 2017-12-31 0000027996 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2017-12-31 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2017-12-31 0000027996 dlx:FundsHeldForCustomersMember us-gaap:FairValueMeasurementsRecurringMember dlx:ForeigndebtsecuritiesMember 2017-12-31 0000027996 dlx:FundsHeldForCustomersMember dlx:ForeigndebtsecuritiesMember 2017-12-31 0000027996 us-gaap:FairValueMeasurementsRecurringMember 2017-12-31 0000027996 dlx:AccruedcontingentconsiderationMember 2018-01-01 2018-06-30 0000027996 dlx:AccruedcontingentconsiderationMember 2018-06-30 0000027996 dlx:AccruedcontingentconsiderationMember 2017-12-31 0000027996 us-gaap:CostOfSalesMember 2017-04-01 2017-06-30 0000027996 us-gaap:CostOfSalesMember 2018-04-01 2018-06-30 0000027996 us-gaap:CostOfSalesMember 2018-01-01 2018-06-30 0000027996 us-gaap:CostOfSalesMember 2017-01-01 2017-06-30 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember 2018-04-01 2018-06-30 0000027996 us-gaap:EmployeeSeveranceMember 2018-04-01 2018-06-30 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember 2017-01-01 2017-06-30 0000027996 dlx:OperatingLeaseObligationsMember 2017-01-01 2017-06-30 0000027996 us-gaap:OtherRestructuringMember 2017-04-01 2017-06-30 0000027996 us-gaap:EmployeeSeveranceMember 2017-01-01 2017-06-30 0000027996 us-gaap:EmployeeSeveranceMember 2018-01-01 2018-06-30 0000027996 us-gaap:OtherRestructuringMember 2017-01-01 2017-06-30 0000027996 us-gaap:EmployeeSeveranceMember 2017-04-01 2017-06-30 0000027996 dlx:OperatingLeaseObligationsMember 2017-04-01 2017-06-30 0000027996 dlx:OperatingLeaseObligationsMember 2018-01-01 2018-06-30 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember 2017-04-01 2017-06-30 0000027996 us-gaap:OtherRestructuringMember 2018-04-01 2018-06-30 0000027996 dlx:OperatingLeaseObligationsMember 2018-04-01 2018-06-30 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember 2018-01-01 2018-06-30 0000027996 us-gaap:OtherRestructuringMember 2018-01-01 2018-06-30 0000027996 2018-04-25 0000027996 srt:MaximumMember 2018-04-25 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember dlx:Fiscal2016InitiativesMember 2018-01-01 2018-06-30 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember dlx:A2018initiativesMember 2018-01-01 2018-06-30 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember dlx:Fiscal2016InitiativesMember 2018-06-30 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember 2018-06-30 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember dlx:Fiscal2017InitiativesMember 2018-06-30 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember dlx:A2018initiativesMember 2017-12-31 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember dlx:Fiscal2017InitiativesMember 2018-01-01 2018-06-30 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember dlx:Fiscal2017InitiativesMember 2017-01-01 2018-06-30 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember dlx:Fiscal2016InitiativesMember 2016-01-01 2018-06-30 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember 2016-01-01 2018-06-30 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember dlx:Fiscal2016InitiativesMember 2017-12-31 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember 2017-12-31 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember dlx:Fiscal2017InitiativesMember 2017-12-31 0000027996 dlx:EmployeeseveranceandoperatingleaseobligationsMember dlx:A2018initiativesMember 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember dlx:FinancialServicesMember 2018-01-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember dlx:DirectChecksMember 2018-01-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember dlx:FinancialServicesMember 2016-01-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember dlx:SmallBusinessServicesMember 2017-12-31 0000027996 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember dlx:DirectChecksMember 2016-01-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember dlx:FinancialServicesMember 2018-06-30 0000027996 us-gaap:CorporateNonSegmentMember us-gaap:EmployeeSeveranceMember 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember dlx:DirectChecksMember 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:OperatingLeaseObligationsMember dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:OperatingLeaseObligationsMember dlx:SmallBusinessServicesMember 2016-01-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 us-gaap:CorporateNonSegmentMember us-gaap:EmployeeSeveranceMember 2018-01-01 2018-06-30 0000027996 us-gaap:CorporateNonSegmentMember us-gaap:EmployeeSeveranceMember 2016-01-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:OperatingLeaseObligationsMember dlx:SmallBusinessServicesMember 2018-06-30 0000027996 us-gaap:CorporateNonSegmentMember us-gaap:EmployeeSeveranceMember 2017-12-31 0000027996 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember dlx:SmallBusinessServicesMember 2016-01-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember dlx:DirectChecksMember 2017-12-31 0000027996 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember dlx:SmallBusinessServicesMember 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:OperatingLeaseObligationsMember dlx:SmallBusinessServicesMember 2017-12-31 0000027996 us-gaap:OperatingSegmentsMember us-gaap:EmployeeSeveranceMember dlx:FinancialServicesMember 2017-12-31 0000027996 2017-01-01 2017-12-31 0000027996 us-gaap:LineOfCreditMember 2018-01-01 2018-06-30 0000027996 us-gaap:RevolvingCreditFacilityMember 2017-01-01 2017-12-31 0000027996 us-gaap:RevolvingCreditFacilityMember 2018-01-01 2018-06-30 0000027996 us-gaap:LineOfCreditMember 2017-01-01 2017-12-31 0000027996 us-gaap:RevolvingCreditFacilityMember 2018-06-30 0000027996 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember 2018-01-01 2018-06-30 0000027996 us-gaap:RevolvingCreditFacilityMember 2017-12-31 0000027996 srt:MinimumMember us-gaap:RevolvingCreditFacilityMember 2018-01-01 2018-06-30 0000027996 us-gaap:LineOfCreditMember 2017-12-31 0000027996 us-gaap:CapitalLeaseObligationsMember 2017-12-31 0000027996 us-gaap:CapitalLeaseObligationsMember 2018-06-30 0000027996 us-gaap:LineOfCreditMember 2018-06-30 0000027996 dlx:Environmentalinsurancepolicypurchasedduring2002Member 2018-06-30 0000027996 dlx:EnvironmentalinsurancepoliciesineffectMember 2018-06-30 0000027996 dlx:Environmentalinsurancepolicypurchasedduring2009Member 2018-06-30 0000027996 2016-05-04 0000027996 us-gaap:NonUsMember dlx:FinancialServicesMember 2018-01-01 2018-06-30 0000027996 country:US dlx:DirectChecksMember 2018-01-01 2018-06-30 0000027996 us-gaap:NonUsMember dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 us-gaap:NonUsMember dlx:SmallBusinessServicesMember 2018-04-01 2018-06-30 0000027996 us-gaap:NonUsMember dlx:DirectChecksMember 2018-04-01 2018-06-30 0000027996 dlx:FinancialServicesMember 2018-04-01 2018-06-30 0000027996 us-gaap:NonUsMember dlx:FinancialServicesMember 2018-04-01 2018-06-30 0000027996 country:US 2018-04-01 2018-06-30 0000027996 dlx:FinancialServicesMember 2018-01-01 2018-06-30 0000027996 country:US dlx:FinancialServicesMember 2018-04-01 2018-06-30 0000027996 dlx:DirectChecksMember 2018-01-01 2018-06-30 0000027996 us-gaap:NonUsMember dlx:DirectChecksMember 2018-01-01 2018-06-30 0000027996 us-gaap:NonUsMember 2018-04-01 2018-06-30 0000027996 country:US dlx:SmallBusinessServicesMember 2018-04-01 2018-06-30 0000027996 country:US dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 us-gaap:NonUsMember 2018-01-01 2018-06-30 0000027996 country:US dlx:DirectChecksMember 2018-04-01 2018-06-30 0000027996 dlx:DirectChecksMember 2018-04-01 2018-06-30 0000027996 country:US 2018-01-01 2018-06-30 0000027996 country:US dlx:FinancialServicesMember 2018-01-01 2018-06-30 0000027996 dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 dlx:SmallBusinessServicesMember 2018-04-01 2018-06-30 0000027996 dlx:FormsaccessoriesandotherproductsMember dlx:DirectChecksMember 2017-04-01 2017-06-30 0000027996 dlx:DirectChecksMember 2017-04-01 2017-06-30 0000027996 dlx:TreasurymanagementsolutionsMember dlx:SmallBusinessServicesMember 2017-04-01 2017-06-30 0000027996 dlx:WebservicesMember dlx:SmallBusinessServicesMember 2017-04-01 2017-06-30 0000027996 dlx:DirectChecksMember 2017-01-01 2017-06-30 0000027996 dlx:TreasurymanagementsolutionsMember 2017-01-01 2017-06-30 0000027996 dlx:SmallbusinessmarketingsolutionsMember dlx:SmallBusinessServicesMember 2017-01-01 2017-06-30 0000027996 dlx:SmallbusinessmarketingsolutionsMember 2017-01-01 2017-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember 2017-01-01 2017-06-30 0000027996 dlx:SmallbusinessmarketingsolutionsMember dlx:DirectChecksMember 2017-04-01 2017-06-30 0000027996 dlx:FormsaccessoriesandotherproductsMember dlx:FinancialServicesMember 2017-04-01 2017-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember dlx:FinancialServicesMember 2017-01-01 2017-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember dlx:DirectChecksMember 2017-04-01 2017-06-30 0000027996 dlx:WebservicesMember dlx:FinancialServicesMember 2017-01-01 2017-06-30 0000027996 dlx:FormsaccessoriesandotherproductsMember 2017-04-01 2017-06-30 0000027996 dlx:SmallbusinessmarketingsolutionsMember dlx:FinancialServicesMember 2017-04-01 2017-06-30 0000027996 dlx:SmallbusinessmarketingsolutionsMember dlx:DirectChecksMember 2017-01-01 2017-06-30 0000027996 dlx:TreasurymanagementsolutionsMember dlx:FinancialServicesMember 2017-04-01 2017-06-30 0000027996 dlx:DatadrivenmarketingsolutionsMember dlx:SmallBusinessServicesMember 2017-01-01 2017-06-30 0000027996 dlx:SmallBusinessServicesMember 2017-01-01 2017-06-30 0000027996 dlx:SmallbusinessmarketingsolutionsMember dlx:FinancialServicesMember 2017-01-01 2017-06-30 0000027996 dlx:FormsaccessoriesandotherproductsMember dlx:SmallBusinessServicesMember 2017-01-01 2017-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember 2017-01-01 2017-06-30 0000027996 dlx:TreasurymanagementsolutionsMember dlx:DirectChecksMember 2017-04-01 2017-06-30 0000027996 dlx:DatadrivenmarketingsolutionsMember dlx:SmallBusinessServicesMember 2017-04-01 2017-06-30 0000027996 dlx:WebservicesMember dlx:DirectChecksMember 2017-01-01 2017-06-30 0000027996 dlx:WebservicesMember 2017-04-01 2017-06-30 0000027996 dlx:TreasurymanagementsolutionsMember 2017-04-01 2017-06-30 0000027996 dlx:FraudsecurityriskmanagementandoperationalservicesMember dlx:FinancialServicesMember 2017-01-01 2017-06-30 0000027996 dlx:FormsaccessoriesandotherproductsMember dlx:DirectChecksMember 2017-01-01 2017-06-30 0000027996 dlx:FraudsecurityriskmanagementandoperationalservicesMember dlx:DirectChecksMember 2017-01-01 2017-06-30 0000027996 dlx:DatadrivenmarketingsolutionsMember dlx:DirectChecksMember 2017-01-01 2017-06-30 0000027996 dlx:FraudsecurityriskmanagementandoperationalservicesMember 2017-01-01 2017-06-30 0000027996 dlx:FinancialServicesMember 2017-01-01 2017-06-30 0000027996 dlx:WebservicesMember dlx:FinancialServicesMember 2017-04-01 2017-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember dlx:DirectChecksMember 2017-01-01 2017-06-30 0000027996 dlx:TreasurymanagementsolutionsMember dlx:FinancialServicesMember 2017-01-01 2017-06-30 0000027996 dlx:DatadrivenmarketingsolutionsMember dlx:FinancialServicesMember 2017-04-01 2017-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember dlx:FinancialServicesMember 2017-01-01 2017-06-30 0000027996 dlx:WebservicesMember dlx:DirectChecksMember 2017-04-01 2017-06-30 0000027996 dlx:TreasurymanagementsolutionsMember dlx:DirectChecksMember 2017-01-01 2017-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember dlx:SmallBusinessServicesMember 2017-04-01 2017-06-30 0000027996 dlx:FraudsecurityriskmanagementandoperationalservicesMember dlx:DirectChecksMember 2017-04-01 2017-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember dlx:SmallBusinessServicesMember 2017-01-01 2017-06-30 0000027996 dlx:DatadrivenmarketingsolutionsMember 2017-04-01 2017-06-30 0000027996 dlx:TreasurymanagementsolutionsMember dlx:SmallBusinessServicesMember 2017-01-01 2017-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember dlx:FinancialServicesMember 2017-04-01 2017-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember dlx:DirectChecksMember 2017-04-01 2017-06-30 0000027996 dlx:FinancialServicesMember 2017-04-01 2017-06-30 0000027996 dlx:FraudsecurityriskmanagementandoperationalservicesMember dlx:FinancialServicesMember 2017-04-01 2017-06-30 0000027996 dlx:DatadrivenmarketingsolutionsMember dlx:FinancialServicesMember 2017-01-01 2017-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember 2017-04-01 2017-06-30 0000027996 dlx:FormsaccessoriesandotherproductsMember dlx:FinancialServicesMember 2017-01-01 2017-06-30 0000027996 dlx:DatadrivenmarketingsolutionsMember dlx:DirectChecksMember 2017-04-01 2017-06-30 0000027996 dlx:SmallbusinessmarketingsolutionsMember dlx:SmallBusinessServicesMember 2017-04-01 2017-06-30 0000027996 dlx:WebservicesMember 2017-01-01 2017-06-30 0000027996 dlx:SmallBusinessServicesMember 2017-04-01 2017-06-30 0000027996 dlx:SmallbusinessmarketingsolutionsMember 2017-04-01 2017-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember dlx:SmallBusinessServicesMember 2017-04-01 2017-06-30 0000027996 dlx:FraudsecurityriskmanagementandoperationalservicesMember dlx:SmallBusinessServicesMember 2017-01-01 2017-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember 2017-04-01 2017-06-30 0000027996 dlx:WebservicesMember dlx:SmallBusinessServicesMember 2017-01-01 2017-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember dlx:DirectChecksMember 2017-01-01 2017-06-30 0000027996 dlx:FormsaccessoriesandotherproductsMember dlx:SmallBusinessServicesMember 2017-04-01 2017-06-30 0000027996 dlx:FormsaccessoriesandotherproductsMember 2017-01-01 2017-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember dlx:SmallBusinessServicesMember 2017-01-01 2017-06-30 0000027996 dlx:FraudsecurityriskmanagementandoperationalservicesMember 2017-04-01 2017-06-30 0000027996 dlx:DatadrivenmarketingsolutionsMember 2017-01-01 2017-06-30 0000027996 dlx:FraudsecurityriskmanagementandoperationalservicesMember dlx:SmallBusinessServicesMember 2017-04-01 2017-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember dlx:FinancialServicesMember 2017-04-01 2017-06-30 0000027996 dlx:TreasurymanagementsolutionsMember dlx:DirectChecksMember 2018-01-01 2018-06-30 0000027996 dlx:DatadrivenmarketingsolutionsMember dlx:SmallBusinessServicesMember 2018-04-01 2018-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember dlx:DirectChecksMember 2018-04-01 2018-06-30 0000027996 dlx:FormsaccessoriesandotherproductsMember 2018-04-01 2018-06-30 0000027996 dlx:SmallbusinessmarketingsolutionsMember 2018-01-01 2018-06-30 0000027996 dlx:TreasurymanagementsolutionsMember dlx:FinancialServicesMember 2018-04-01 2018-06-30 0000027996 dlx:WebservicesMember 2018-01-01 2018-06-30 0000027996 dlx:WebservicesMember dlx:SmallBusinessServicesMember 2018-04-01 2018-06-30 0000027996 dlx:TreasurymanagementsolutionsMember 2018-04-01 2018-06-30 0000027996 dlx:FraudsecurityriskmanagementandoperationalservicesMember dlx:FinancialServicesMember 2018-04-01 2018-06-30 0000027996 dlx:DatadrivenmarketingsolutionsMember 2018-01-01 2018-06-30 0000027996 dlx:SmallbusinessmarketingsolutionsMember dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 dlx:FormsaccessoriesandotherproductsMember dlx:DirectChecksMember 2018-01-01 2018-06-30 0000027996 dlx:FraudsecurityriskmanagementandoperationalservicesMember dlx:DirectChecksMember 2018-01-01 2018-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember 2018-01-01 2018-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 dlx:WebservicesMember dlx:FinancialServicesMember 2018-01-01 2018-06-30 0000027996 dlx:FraudsecurityriskmanagementandoperationalservicesMember dlx:FinancialServicesMember 2018-01-01 2018-06-30 0000027996 dlx:FormsaccessoriesandotherproductsMember dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 dlx:FormsaccessoriesandotherproductsMember dlx:FinancialServicesMember 2018-01-01 2018-06-30 0000027996 dlx:DatadrivenmarketingsolutionsMember dlx:DirectChecksMember 2018-04-01 2018-06-30 0000027996 dlx:FraudsecurityriskmanagementandoperationalservicesMember dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 dlx:FraudsecurityriskmanagementandoperationalservicesMember dlx:DirectChecksMember 2018-04-01 2018-06-30 0000027996 dlx:TreasurymanagementsolutionsMember dlx:SmallBusinessServicesMember 2018-04-01 2018-06-30 0000027996 dlx:SmallbusinessmarketingsolutionsMember 2018-04-01 2018-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember dlx:FinancialServicesMember 2018-01-01 2018-06-30 0000027996 dlx:FormsaccessoriesandotherproductsMember dlx:SmallBusinessServicesMember 2018-04-01 2018-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember dlx:FinancialServicesMember 2018-04-01 2018-06-30 0000027996 dlx:TreasurymanagementsolutionsMember dlx:FinancialServicesMember 2018-01-01 2018-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember dlx:FinancialServicesMember 2018-04-01 2018-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember dlx:SmallBusinessServicesMember 2018-04-01 2018-06-30 0000027996 dlx:FormsaccessoriesandotherproductsMember 2018-01-01 2018-06-30 0000027996 dlx:DatadrivenmarketingsolutionsMember dlx:FinancialServicesMember 2018-04-01 2018-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 dlx:FormsaccessoriesandotherproductsMember dlx:FinancialServicesMember 2018-04-01 2018-06-30 0000027996 dlx:DatadrivenmarketingsolutionsMember dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 dlx:WebservicesMember dlx:DirectChecksMember 2018-04-01 2018-06-30 0000027996 dlx:SmallbusinessmarketingsolutionsMember dlx:SmallBusinessServicesMember 2018-04-01 2018-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember 2018-01-01 2018-06-30 0000027996 dlx:SmallbusinessmarketingsolutionsMember dlx:FinancialServicesMember 2018-04-01 2018-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember dlx:FinancialServicesMember 2018-01-01 2018-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember dlx:SmallBusinessServicesMember 2018-04-01 2018-06-30 0000027996 dlx:SmallbusinessmarketingsolutionsMember dlx:DirectChecksMember 2018-01-01 2018-06-30 0000027996 dlx:WebservicesMember dlx:FinancialServicesMember 2018-04-01 2018-06-30 0000027996 dlx:FraudsecurityriskmanagementandoperationalservicesMember 2018-01-01 2018-06-30 0000027996 dlx:WebservicesMember 2018-04-01 2018-06-30 0000027996 dlx:TreasurymanagementsolutionsMember 2018-01-01 2018-06-30 0000027996 dlx:WebservicesMember dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 dlx:TreasurymanagementsolutionsMember dlx:DirectChecksMember 2018-04-01 2018-06-30 0000027996 dlx:SmallbusinessmarketingsolutionsMember dlx:FinancialServicesMember 2018-01-01 2018-06-30 0000027996 dlx:FraudsecurityriskmanagementandoperationalservicesMember 2018-04-01 2018-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember dlx:DirectChecksMember 2018-01-01 2018-06-30 0000027996 dlx:DatadrivenmarketingsolutionsMember dlx:FinancialServicesMember 2018-01-01 2018-06-30 0000027996 dlx:DatadrivenmarketingsolutionsMember 2018-04-01 2018-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember 2018-04-01 2018-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember dlx:DirectChecksMember 2018-01-01 2018-06-30 0000027996 dlx:FraudsecurityriskmanagementandoperationalservicesMember dlx:SmallBusinessServicesMember 2018-04-01 2018-06-30 0000027996 dlx:SmallbusinessmarketingsolutionsMember dlx:DirectChecksMember 2018-04-01 2018-06-30 0000027996 dlx:DatadrivenmarketingsolutionsMember dlx:DirectChecksMember 2018-01-01 2018-06-30 0000027996 dlx:FormsaccessoriesandotherproductsMember dlx:DirectChecksMember 2018-04-01 2018-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember 2018-04-01 2018-06-30 0000027996 dlx:WebservicesMember dlx:DirectChecksMember 2018-01-01 2018-06-30 0000027996 dlx:TreasurymanagementsolutionsMember dlx:SmallBusinessServicesMember 2018-01-01 2018-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember dlx:DirectChecksMember 2018-04-01 2018-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember us-gaap:ProductConcentrationRiskMember dlx:SmallBusinessServicesMember 2017-01-01 2017-12-31 0000027996 dlx:ChecksincludingcontractsettlementsMember us-gaap:ProductConcentrationRiskMember dlx:DirectChecksMember 2017-01-01 2017-12-31 0000027996 dlx:MarketingsolutionsandotherservicesMember us-gaap:ProductConcentrationRiskMember dlx:FinancialServicesMember 2017-01-01 2017-12-31 0000027996 dlx:MarketingsolutionsandotherservicesMember us-gaap:ProductConcentrationRiskMember dlx:SmallBusinessServicesMember 2017-01-01 2017-12-31 0000027996 dlx:MarketingsolutionsandotherservicesMember us-gaap:TransferredOverTimeMember 2018-04-01 2018-06-30 0000027996 dlx:ChecksincludingcontractsettlementsMember us-gaap:ProductConcentrationRiskMember dlx:FinancialServicesMember 2017-01-01 2017-12-31 0000027996 dlx:MarketingsolutionsandotherservicesMember us-gaap:ProductConcentrationRiskMember dlx:DirectChecksMember 2017-01-01 2017-12-31 0000027996 dlx:MarketingsolutionsandotherservicesMember us-gaap:TransferredAtPointInTimeMember 2018-04-01 2018-06-30 0000027996 dlx:MarketingsolutionsandotherservicesMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-06-30 0000027996 us-gaap:CorporateNonSegmentMember 2017-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:FinancialServicesMember 2017-01-01 2017-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:DirectChecksMember 2018-04-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:SmallBusinessServicesMember 2018-04-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:SmallBusinessServicesMember 2017-01-01 2017-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:FinancialServicesMember 2017-04-01 2017-06-30 0000027996 us-gaap:CorporateNonSegmentMember 2018-04-01 2018-06-30 0000027996 us-gaap:CorporateNonSegmentMember 2017-04-01 2017-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:DirectChecksMember 2017-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:SmallBusinessServicesMember 2017-04-01 2017-06-30 0000027996 us-gaap:CorporateNonSegmentMember 2018-01-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:DirectChecksMember 2018-01-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:FinancialServicesMember 2018-04-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:DirectChecksMember 2017-01-01 2017-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:FinancialServicesMember 2018-01-01 2018-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:SmallBusinessServicesMember 2017-06-30 0000027996 us-gaap:CorporateNonSegmentMember 2017-01-01 2017-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:DirectChecksMember 2017-04-01 2017-06-30 0000027996 us-gaap:OperatingSegmentsMember dlx:FinancialServicesMember 2017-06-30 0000027996 us-gaap:CorporateNonSegmentMember 2018-06-30 0000027996 us-gaap:NonUsMember dlx:FinancialServicesMember 2017-01-01 2017-06-30 0000027996 country:US dlx:SmallBusinessServicesMember 2017-04-01 2017-06-30 0000027996 country:US dlx:SmallBusinessServicesMember 2017-01-01 2017-06-30 0000027996 country:US dlx:FinancialServicesMember 2017-04-01 2017-06-30 0000027996 us-gaap:NonUsMember 2017-01-01 2017-06-30 0000027996 us-gaap:NonUsMember dlx:SmallBusinessServicesMember 2017-04-01 2017-06-30 0000027996 country:US dlx:FinancialServicesMember 2017-01-01 2017-06-30 0000027996 us-gaap:NonUsMember dlx:DirectChecksMember 2017-01-01 2017-06-30 0000027996 country:US 2017-01-01 2017-06-30 0000027996 country:US dlx:DirectChecksMember 2017-04-01 2017-06-30 0000027996 country:US dlx:DirectChecksMember 2017-01-01 2017-06-30 0000027996 us-gaap:NonUsMember dlx:FinancialServicesMember 2017-04-01 2017-06-30 0000027996 us-gaap:NonUsMember dlx:SmallBusinessServicesMember 2017-01-01 2017-06-30 0000027996 us-gaap:NonUsMember dlx:DirectChecksMember 2017-04-01 2017-06-30 0000027996 country:US 2017-04-01 2017-06-30 0000027996 us-gaap:NonUsMember 2017-04-01 2017-06-30 xbrli:shares dlx:disposal_groups iso4217:USD iso4217:USD xbrli:shares dlx:business xbrli:pure dlx:Employees
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark One)
[X]
 
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
 
For the quarterly period ended
June 30, 2018
[ ]
 
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 
For the transition period from ________________________ to ________________________

Commission file number: 1-7945

deluxeenterpriselogoa04.jpg 

DELUXE CORPORATION
(Exact name of registrant as specified in its charter) 
Minnesota
(State or other jurisdiction of incorporation or organization)
41-0216800
(I.R.S. Employer Identification No.)
3680 Victoria St. N., Shoreview, Minnesota
(Address of principal executive offices)
55126-2966
(Zip Code)

(651) 483-7111
(Registrant’s telephone number, including area code) 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [X] Yes   [ ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files).
[X] Yes   [ ] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer [X]
Accelerated filer [ ]
Non-accelerated filer [ ] (Do not check if a smaller reporting company)
Smaller reporting company [ ]
 
Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
[ ] Yes   [X] No

The number of shares outstanding of registrant’s common stock, par value $1.00 per share, as of July 18, 2018 was 47,622,187.

1


PART I – FINANCIAL INFORMATION
Item 1. Financial Statements.
DELUXE CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share par value)
(Unaudited)
 
 
June 30,
2018
 
December 31,
2017
ASSETS
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
68,594

 
$
59,240

Trade accounts receivable, net of allowances for uncollectible accounts
 
131,132

 
149,844

Inventories and supplies
 
43,233

 
42,249

Funds held for customers
 
92,606

 
86,192

Other current assets
 
73,839

 
55,441

Total current assets
 
409,404

 
392,966

Deferred income taxes
 
1,778

 
1,428

Long-term investments
 
43,172

 
42,607

Property, plant and equipment (net of accumulated depreciation of $363,143 and $358,020, respectively)
 
81,751

 
84,638

Assets held for sale
 
3,822

 
12,232

Intangibles (net of accumulated amortization of $497,117 and $444,933, respectively)
 
386,143

 
384,266

Goodwill
 
1,173,475

 
1,130,934

Other non-current assets
 
193,699

 
159,756

Total assets
 
$
2,293,244

 
$
2,208,827

 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 

 
 

Current liabilities:
 
 

 
 

Accounts payable
 
$
105,281

 
$
104,477

Accrued liabilities
 
245,719

 
277,253

Long-term debt due within one year
 
765

 
44,040

Total current liabilities
 
351,765

 
425,770

Long-term debt
 
766,039

 
665,260

Deferred income taxes
 
55,828

 
50,543

Other non-current liabilities
 
44,476

 
52,241

Commitments and contingencies (Notes 11 and 12)
 


 


Shareholders' equity:
 
 

 
 

Common shares $1 par value (authorized: 500,000 shares; outstanding: June 30, 2018 – 47,623; December 31, 2017 – 47,953)
 
47,623

 
47,953

Retained earnings
 
1,076,683

 
1,004,657

Accumulated other comprehensive loss
 
(49,170
)
 
(37,597
)
Total shareholders’ equity
 
1,075,136

 
1,015,013

Total liabilities and shareholders’ equity
 
$
2,293,244

 
$
2,208,827


See Condensed Notes to Unaudited Consolidated Financial Statements

2


DELUXE CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per share amounts)
(Unaudited)

 
 
Quarter Ended
June 30,
 
Six Months Ended
June 30,
 
 
2018
 
2017
 
2018
 
2017
Product revenue
 
$
359,935

 
$
363,641

 
$
723,342

 
$
735,815

Service revenue
 
128,309

 
121,591

 
256,816

 
237,183

Total revenue
 
488,244

 
485,232

 
980,158

 
972,998

Cost of products
 
(134,332
)
 
(130,728
)
 
(267,703
)
 
(263,260
)
Cost of services
 
(55,869
)
 
(48,640
)
 
(111,256
)
 
(95,422
)
Total cost of revenue
 
(190,201
)
 
(179,368
)
 
(378,959
)
 
(358,682
)
Gross profit
 
298,043

 
305,864

 
601,199

 
614,316

Selling, general and administrative expense
 
(209,585
)
 
(208,656
)
 
(420,739
)
 
(425,800
)
Net restructuring charges
 
(5,635
)
 
(1,427
)
 
(7,780
)
 
(2,441
)
Asset impairment charges
 

 
(2,954
)
 
(2,149
)
 
(8,250
)
Operating income
 
82,823


92,827

 
170,531

 
177,825

Interest expense
 
(6,130
)
 
(5,258
)
 
(11,708
)
 
(10,087
)
Other income
 
2,436

 
1,250

 
3,724

 
2,312

Income before income taxes
 
79,129

 
88,819

 
162,547

 
170,050

Income tax provision
 
(18,922
)
 
(29,240
)
 
(39,003
)
 
(53,405
)
Net income
 
$
60,207

 
$
59,579

 
$
123,544

 
$
116,645

Comprehensive income
 
$
57,272

 
$
61,190

 
$
118,838

 
$
119,438

Basic earnings per share
 
1.26

 
1.23

 
2.58

 
2.40

Diluted earnings per share
 
1.25

 
1.22

 
2.56

 
2.38

Cash dividends per share
 
0.30

 
0.30

 
0.60

 
0.60


See Condensed Notes to Unaudited Consolidated Financial Statements


3


DELUXE CORPORATION
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
(in thousands)
(Unaudited)

 
 
Common shares
 
Common shares
par value
 
Additional paid-in capital
 
Retained earnings
 
Accumulated other comprehensive loss
 
Total
Balance, December 31, 2017
 
47,953

 
$
47,953

 
$

 
$
1,004,657

 
$
(37,597
)
 
$
1,015,013

Net income
 

 

 

 
123,544

 

 
123,544

Cash dividends
 

 

 

 
(28,804
)
 

 
(28,804
)
Common shares issued
 
490

 
490

 
16,677

 

 

 
17,167

Common shares repurchased
 
(573
)
 
(573
)
 
(4,876
)
 
(34,547
)
 

 
(39,996
)
Other common shares retired
 
(247
)
 
(247
)
 
(17,579
)
 

 

 
(17,826
)
Employee share-based compensation
 

 

 
5,778

 

 

 
5,778

Adoption of Accounting Standards Update No. 2014-09 (Note 2)
 

 

 

 
4,966

 

 
4,966

Adoption of Accounting Standards Update No. 2018-02 (Note 2)
 

 

 

 
6,867

 
(6,867
)
 

Other comprehensive loss
 

 

 

 

 
(4,706
)
 
(4,706
)
Balance, June 30, 2018
 
47,623

 
$
47,623

 
$

 
$
1,076,683

 
$
(49,170
)
 
$
1,075,136



See Condensed Notes to Unaudited Consolidated Financial Statements


4


DELUXE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
 
 
Six Months Ended
June 30,
 
 
2018
 
2017
Cash flows from operating activities:
 
 
 
 
Net income
 
$
123,544

 
$
116,645

Adjustments to reconcile net income to net cash provided by operating activities:
 
 

 
 

Depreciation
 
7,823

 
8,223

Amortization of intangibles
 
55,694

 
51,828

Asset impairment charges
 
2,149

 
8,250

Amortization of prepaid product discounts
 
11,124

 
9,588

Deferred income taxes
 
(2,747
)
 
(6,942
)
Employee share-based compensation expense
 
5,757

 
7,309

Other non-cash items, net
 
(7,543
)
 
(2,983
)
Changes in assets and liabilities, net of effect of acquisitions:
 
 

 
 

Trade accounts receivable
 
16,670

 
15,401

Inventories and supplies
 
(1,245
)
 
637

Other current assets
 
(12,435
)
 
(2,779
)
Non-current assets
 
(3,400
)
 
(1,776
)
Accounts payable
 
2,858

 
(12,063
)
Prepaid product discount payments
 
(13,282
)
 
(10,937
)
Other accrued and non-current liabilities
 
(38,031
)
 
(28,823
)
Net cash provided by operating activities
 
146,936

 
151,578

Cash flows from investing activities:
 
 

 
 

Purchases of capital assets
 
(28,040
)
 
(22,788
)
Payments for acquisitions, net of cash acquired
 
(90,205
)
 
(77,553
)
Proceeds from sales of marketable securities
 

 
3,500

Other
 
682

 
739

Net cash used by investing activities
 
(117,563
)
 
(96,102
)
Cash flows from financing activities:
 
 

 
 

Proceeds from issuing long-term debt
 
908,000

 
168,000

Payments on long-term debt
 
(851,410
)
 
(207,052
)
Proceeds from issuing shares under employee plans
 
5,767

 
5,914

Employee taxes paid for shares withheld
 
(7,947
)
 
(5,572
)
Payments for common shares repurchased
 
(39,996
)
 
(30,068
)
Cash dividends paid to shareholders
 
(28,762
)
 
(29,156
)
Other
 
(3,921
)
 
(511
)
Net cash used by financing activities
 
(18,269
)
 
(98,445
)
Effect of exchange rate change on cash
 
(1,750
)
 
1,175

Net change in cash and cash equivalents
 
9,354

 
(41,794
)
Cash and cash equivalents, beginning of year
 
59,240

 
76,574

Cash and cash equivalents, end of period
 
$
68,594

 
$
34,780


See Condensed Notes to Unaudited Consolidated Financial Statements

5

DELUXE CORPORATION
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

Note 1: Consolidated financial statements

The consolidated balance sheet as of June 30, 2018, the consolidated statements of comprehensive income for the quarters and six months ended June 30, 2018 and 2017, the consolidated statement of shareholders’ equity for the six months ended June 30, 2018, and the consolidated statements of cash flows for the six months ended June 30, 2018 and 2017 are unaudited. The consolidated balance sheet as of December 31, 2017 was derived from audited consolidated financial statements, but does not include all disclosures required by generally accepted accounting principles (GAAP) in the United States of America. In the opinion of management, all adjustments necessary for a fair statement of the consolidated financial statements are included. Adjustments consist only of normal recurring items, except for any discussed in the notes below. Interim results are not necessarily indicative of results for a full year. The consolidated financial statements and notes are presented in accordance with instructions for Form 10-Q and do not contain certain information included in our annual consolidated financial statements and notes. The consolidated financial statements and notes appearing in this report should be read in conjunction with the consolidated audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Form 10-K”).


Note 2: New accounting pronouncements

The following discusses the impact of each accounting standards update (ASU) adopted on January 1, 2018:

ASU No. 2014-09 – In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers. The standard provides revenue recognition guidance for any entity that enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets, unless those contracts are within the scope of other accounting standards. In addition, the FASB subsequently issued several amendments to the standard. We adopted the standard and all the related amendments on January 1, 2018 using the modified retrospective method. We applied the new guidance to uncompleted contracts as of January 1, 2018 and recorded the cumulative effect of initially applying the standard as an adjustment to retained earnings, with the offset to other current assets, other non-current assets and deferred income tax liabilities. We have elected the practical expedient for contract modifications, allowing us to consider the impact of all contract modifications completed prior to January 1, 2018. We have also elected the practical expedient that allows us to disregard the effects of a financing component if the period between payment and performance will be 1 year or less. Election of these practical expedients did not have a significant impact on our results of operations or financial position. Prior periods have not been restated and continue to be reported under the accounting standards in effect for those periods. We do not expect the adoption of this guidance to have a material impact on our results of operations, financial position or cash flows on an ongoing basis. The new guidance also expands the required financial statement disclosures regarding revenue recognition. Those disclosures appear below, while information regarding the disaggregation of revenue can be found in Note 14.

Our product revenue is recognized when control of the goods is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods. In most cases, control is transferred when products are shipped. We recognize the vast majority of our service revenue as the services are provided. Many of our check supply contracts with financial institutions provide for rebates on certain products. We record these rebates as reductions of revenue and as accrued liabilities on our consolidated balance sheets when the related revenue is recognized. Many of our financial institution contracts also require prepaid product discounts in the form of upfront cash payments we make to our financial institution clients. These prepaid product discounts are included in other non-current assets in our consolidated balance sheets and are amortized as reductions of revenue, generally on the straight-line basis, over the contract term. Sales tax collected concurrent with revenue-producing activities is excluded from revenue. Amounts billed to customers for shipping and handling are included in revenue, while the related shipping and handling costs are reflected in cost of products. We have elected the practical expedient that allows us to account for shipping and handling activities that occur after the customer has obtained control of a good as a fulfillment cost, and we accrue costs of shipping and handling when the related revenue is recognized. As part of our Financial Services rewards, incentive and loyalty programs, we receive payments from consumers or our clients for the products and services provided, including hotel stays, gift cards and merchandise, such as apparel, electronics and clothing. This revenue is recorded net of the related fulfillment costs.

Certain of our contracts for data-driven marketing solutions and treasury management outsourcing services within Financial Services have variable consideration that is contingent on either the success of the marketing campaign ("pay-for-performance") or the volume of outsourcing services provided. We recognize revenue for estimated variable consideration as

6

DELUXE CORPORATION
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

services are provided based on the most likely amount to be realized. Revenue is recognized to the extent that it is probable that a significant reversal of revenue will not occur when the contingency is resolved. Estimates regarding the recognition of variable consideration are updated each quarter. Typically, the amount of consideration for these contracts is finalized within 3 months, although pricing under certain of our outsourcing contracts may be based on annual volume commitments. Revenue recognized from these contracts was approximately $100,000 in 2017. Under the new standard, we have accelerated the recognition of a portion of this variable consideration.

Certain of our contracts for treasury management solutions result from the sale of bundled arrangements that may include hardware, software and professional services, as well as customization and modification of software, and specify the timing of customer billings over the course of the contract. Revenue for these contracts is recognized using a cost-based input method that depicts the transfer of services to the customer. The transaction price is allocated to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers or using expected cost plus margin. When the revenue recognized for uncompleted contracts exceeds the amount of customer billings, a contract asset is reflected in our consolidated balance sheets within other current assets. The amount included in other current assets was $31,955 as of June 30, 2018 and $16,379 as of December 31, 2017. When the amount of customer billings for uncompleted contracts exceeds the revenue recognized, a contract liability is reflected in our consolidated balance sheets within accrued liabilities. The amount included in accrued liabilities was $1,509 as of June 30, 2018 and $2,233 as of December 31, 2017.
  
At times, a financial institution client may terminate its check supply contract with us prior to the end of the contract term. In many cases, the financial institution is contractually required to remit a contract termination payment. Such payments are recorded as revenue when the termination agreement is executed, provided that we have no further performance obligations and collection of the funds is assured. If we have further performance obligations following the execution of a contract termination agreement, we record the related revenue over the remaining service period.

Our payment terms vary by type of customer and the products or services offered. The time period between invoicing and when payment is due is not significant. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. When a customer pays in advance for services, primarily for treasury management solutions and web hosting services, we defer the revenue and recognize it as the services are performed, generally over a period of less than 1 year. Deferred revenue is included in accrued liabilities and other non-current liabilities in our consolidated balance sheets. The decrease of $4,308 in deferred revenue for the six months ended June 30, 2018 was primarily driven by the recognition of $32,221 of revenue that was included in deferred revenue as of December 31, 2017, partially offset by cash payments received in advance of satisfying our performance obligations. In addition to the amounts included in deferred revenue, we will recognize revenue in future periods related to remaining performance obligations for certain of our data-driven marketing and treasury management solutions. Generally, these contracts have terms of 1 year or less and many have terms of 3 months or less. The amount of revenue related to these unsatisfied performance obligations is not significant to our annual consolidated revenue.

The new guidance requires that certain costs incurred to obtain contracts be recognized as assets and amortized consistent with the transfer of goods or services to the customer. As such, we are now deferring sales commissions related to obtaining check supply and treasury management solution contracts within Financial Services. These amounts are included in other non-current assets and are amortized as selling, general and administrative (SG&A) expense. Amortization of these amounts on the straight-line basis approximates the timing of the transfer of goods or services to the customer. Generally, these amounts are being amortized over periods of 3 to 6 years. We elected the practical expedient allowing us to expense sales commissions as incurred when the amortization period would have been 1 year or less.


7

DELUXE CORPORATION
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

The cumulative effect of the changes made to our unaudited consolidated balance sheet as of January 1, 2018 for the adoption of the new revenue guidance was as follows:
(in thousands)
 
Balance as of December 31, 2017
 
Adjustments due to ASU No. 2014-09
 
Balance as of January 1, 2018
Other current assets
 
$
55,441

 
$
960

 
$
56,401

Total current assets
 
392,966

 
960

 
393,926

Other non-current assets
 
159,756

 
5,733

 
165,489

Total assets
 
$
2,208,827

 
$
6,693

 
$
2,215,520

 
 
 
 
 
 
 
Deferred income taxes
 
$
50,543

 
$
1,727

 
$
52,270

Retained earnings
 
1,004,657

 
4,966

 
1,009,623

Total liabilities and shareholders' equity
 
$
2,208,827

 
$
6,693

 
$
2,215,520


The impact of adoption of the new revenue guidance on our unaudited consolidated statements of comprehensive income for the quarter and six months ended June 30, 2018 and on our unaudited consolidated balance sheet as of June 30, 2018 was as follows:
(in thousands)
 
As reported
 
Effect of adoption
 
Balance without adoption of ASU No. 2014-09
 
 
Quarter Ended June 30, 2018
Service revenue
 
$
128,309

 
$
(33
)
 
$
128,276

Total revenue
 
488,244

 
(33
)
 
488,211

Cost of services
 
(55,869
)
 
129

 
(55,740
)
Total cost of revenue
 
(190,201
)
 
129

 
(190,072
)
Gross profit
 
298,043

 
96

 
298,139

Selling, general and administrative expense
 
(209,585
)
 
(1,567
)
 
(211,152
)
Operating income
 
82,823

 
(1,471
)
 
81,352

Income before income taxes
 
79,129

 
(1,471
)
 
77,658

Income tax provision
 
(18,922
)
 
380

 
(18,542
)
Net income
 
$
60,207

 
$
(1,091
)
 
$
59,116

 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2018
Service revenue
 
$
256,816

 
$
(568
)
 
$
256,248

Total revenue
 
980,158

 
(568
)
 
979,590

Cost of services
 
(111,256
)
 
384

 
(110,872
)
Total cost of revenue
 
(378,959
)
 
384

 
(378,575
)
Gross profit
 
601,199

 
(184
)
 
601,015

Selling, general and administrative expense
 
(420,739
)
 
(1,051
)
 
(421,790
)
Operating income
 
170,531

 
(1,235
)
 
169,296

Income before income taxes
 
162,547

 
(1,235
)
 
161,312

Income tax provision
 
(39,003
)
 
319

 
(38,684
)
Net income
 
$
123,544

 
$
(916
)
 
$
122,628





8

DELUXE CORPORATION
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

(in thousands)
 
As reported
 
Effect of adoption
 
Balance without adoption of ASU No. 2014-09
 
 
June 30, 2018
Other current assets
 
$
73,839

 
$
(1,146
)
 
$
72,693

Total current assets
 
409,404

 
(1,146
)
 
408,258

Other non-current assets
 
193,699

 
(6,783
)
 
186,916

Total assets
 
$
2,293,244

 
$
(7,929
)
 
$
2,285,315

Accrued liabilities
 
245,719

 
(319
)
 
245,400

Total current liabilities
 
351,765

 
(319
)
 
351,446

Deferred income taxes
 
55,828

 
(1,727
)
 
54,101

Retained earnings
 
1,076,683

 
(5,883
)
 
1,070,800

Total liabilities and shareholders' equity
 
$
2,293,244

 
$
(7,929
)
 
$
2,285,315


ASU No. 2016-01 – In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The standard is intended to improve the recognition, measurement, presentation and disclosure of financial instruments. We adopted this standard on January 1, 2018. This standard had no impact on our results of operations or financial position. Our financial statement disclosures in Note 7 related to financial instruments have been modified to comply with the new standard.

ASU No. 2016-16 – In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory. The standard requires recognition of the tax effects resulting from the intercompany sale of an asset when the transfer occurs. Previously, the tax effects were deferred until the transferred asset was sold to a third party. We adopted this standard on January 1, 2018. No adjustment was required to opening retained earnings, and we do not expect the application of this standard to have a significant impact on our results of operations or financial position going forward.

ASU No. 2017-01 In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business. The standard revises the definition of a business, which affects many areas of accounting such as business combinations and disposals and goodwill impairment. The revised definition of a business will likely result in more acquisitions being accounted for as asset acquisitions, as opposed to business combinations. We adopted this standard on January 1, 2018, applying the guidance to transactions occurring on or after this date.

ASU No. 2017-07 – In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The standard requires that the service cost component of net periodic benefit expense be recognized in the same statement of comprehensive income caption(s) as other compensation costs, and requires that the other components of net periodic benefit expense be recognized in the non-operating section of the statement of comprehensive income. In addition, only the service cost component of net periodic benefit expense is eligible for capitalization when applicable. We adopted this standard on January 1, 2018. The reclassification of the other components of our net periodic benefit income was applied on a retrospective basis. As such, we have revised our results of operations for previous periods. We utilized the practical expedient for adoption allowing us to use the amount previously disclosed in our postretirement benefits footnote as the basis for revising prior periods. As there is no service cost associated with our plans, we reclassified the entire amount of our net periodic benefit income from cost of revenue and SG&A expense to other income in our consolidated statements of comprehensive income. In addition, we no longer include any portion of net periodic benefit income in amounts capitalized for inventory or internal-use software, as only the service cost component is eligible for capitalization. This change did not have a significant impact on our results of operations or financial position.


9

DELUXE CORPORATION
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

The impact of the revision on our unaudited consolidated statements of comprehensive income for the quarter and six months ended June 30, 2017 was as follows:
(in thousands)
 
As previously reported
 
Effect of adoption
 
As revised
 
 
Quarter Ended June 30, 2017
Cost of products
 
$
(130,591
)
 
$
(137
)
 
$
(130,728
)
Cost of services
 
(48,623
)
 
(17
)
 
(48,640
)
Total cost of revenue
 
(179,214
)
 
(154
)
 
(179,368
)
Selling, general and administrative expense
 
(208,306
)
 
(350
)
 
(208,656
)
Operating income
 
93,331

 
(504
)
 
92,827

Other income
 
746

 
504

 
1,250

Net income
 
$
59,579

 
$

 
$
59,579

 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2017
Cost of products
 
$
(262,986
)
 
$
(274
)
 
$
(263,260
)
Cost of services
 
(95,388
)
 
(34
)
 
(95,422
)
Total cost of revenue
 
(358,374
)
 
(308
)
 
(358,682
)
Selling, general and administrative expense
 
(425,100
)
 
(700
)
 
(425,800
)
Operating income
 
178,833

 
(1,008
)
 
177,825

Other income
 
1,304

 
1,008

 
2,312

Net income
 
$
116,645

 
$

 
$
116,645



ASU No. 2017-09 – In May 2017, the FASB issued ASU No. 2017-09, Scope of Modification Accounting. The standard provides guidance about which changes to the terms or conditions of a share-based payment award require modification accounting, which may result in a different fair value for the award. We adopted this standard on January 1, 2018, and it is being applied prospectively to awards modified on or after this date. Historically, modifications to our share-based payment awards have been infrequent. As such, we do not expect the application of this standard to have a significant impact on our results of operations or financial position.

ASU No. 2018-02 – In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The standard allows companies to make an election to reclassify from accumulated other comprehensive income to retained earnings the stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the "2017 Act"). We elected to early adopt this standard on January 1, 2018, applying it in the period of adoption. As such, a reclassification from accumulated other comprehensive loss to retained earnings of $6,867 was recorded during the quarter ended March 31, 2018. This represents the effect of the change in the United States federal corporate income tax rate on the gross deferred tax amount at the date of enactment of the 2017 Act related to items remaining in accumulated other comprehensive loss. Our policy is to release stranded income tax effects from accumulated other comprehensive loss when the circumstances upon which they are premised cease to exist.

In March 2018, the FASB issued ASU No. 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118. The standard added to the FASB Codification the guidance provided by the SEC in December 2017 regarding the accounting for the 2017 Act. We complied with SAB No. 118 when preparing our annual consolidated financial statements for the year ended December 31, 2017. Reasonable estimates were used in determining several of the components of the impact of the 2017 Act, including our 2017 deferred income tax activity and the amount of post-1986 foreign deferred earnings subject to the repatriation toll charge. We are still analyzing certain aspects of the 2017 Act and refining our calculations, which could potentially affect the measurement of our deferred tax balances and the amount of the repatriation toll charge liability, and ultimately cause us to revise our initial estimates in future periods. In addition, changes in interpretations, assumptions and guidance regarding the 2017 Act, as well as the potential for technical corrections, could have a material impact on our effective tax rate in future periods. During the quarter ended June 30, 2018, we recorded an increase in income tax expense of $441 as we refined our accounting for the 2017 Act, and during the six months ended June 30, 2018, we recorded an increase in income tax expense of $131.


10

DELUXE CORPORATION
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

In order to complete our accounting for the 2017 Act, which we expect to finalize by the fourth quarter of 2018, the following specific items need to be completed or addressed:

issuance of state-by-state guidance regarding conformity with or decoupling from the 2017 Act;
finalize the calculation of post-1986 foreign deferred earnings, which are subject to the repatriation toll charge, and determine our ability to beneficially claim a foreign tax credit resulting from the income inclusion; and
where pertinent, adjust to clarifications and guidance regarding other aspects of the 2017 Act, including those related to the deductibility of executive compensation.

Accounting pronouncements not yet adopted – In February 2016, the FASB issued ASU No. 2016-02, Leasing. The standard is intended to increase transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities for virtually all leases and by requiring the disclosure of key information about leasing arrangements. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, which amends narrow aspects of the guidance in ASU No. 2016-02. Both standards are effective for us on January 1, 2019 and require adoption using a modified retrospective approach. We have established an implementation team to evaluate and identify the impact of the standard on our financial position, results of operations and cash flows. We are currently assessing our leasing arrangements, evaluating the impact of practical expedients and accounting policy elections, and implementing software to meet the reporting requirements of the standard. We are not able to quantify the impact of the standard at this time.

In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. The standard introduces new guidance for the accounting for credit losses on instruments within its scope, including trade and loans receivable and available-for-sale debt securities. The guidance is effective for us on January 1, 2020 and requires adoption using a modified retrospective approach. We do not expect the application of this standard to have a significant impact on our results of operations or financial position.


Note 3: Supplemental balance sheet information

Allowance for uncollectible accounts – Changes in the allowance for uncollectible accounts for the six months ended June 30, 2018 and 2017 was as follows:
 
 
Six Months Ended
June 30,
(in thousands)
 
2018
 
2017
Balance, beginning of year
 
$
2,884

 
$
2,828

Bad debt expense
 
1,470

 
1,635

Write-offs, net of recoveries
 
(1,383
)
 
(1,346
)
Balance, end of period
 
$
2,971

 
$
3,117



Inventories and supplies – Inventories and supplies were comprised of the following:
(in thousands)
 
June 30,
2018
 
December 31,
2017
Raw materials
 
$
7,131

 
$
7,357

Semi-finished goods
 
7,787

 
7,635

Finished goods
 
25,348

 
24,146

Supplies
 
2,967

 
3,111

Inventories and supplies
 
$
43,233

 
$
42,249




11

DELUXE CORPORATION
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

Available-for-sale debt securities – Available-for-sale debt securities included within funds held for customers were comprised of the following:
 
 
June 30, 2018
(in thousands)
 
Cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
Funds held for customers:(1)
 
 
 
 
 
 
 
 
Domestic money market fund
 
$
10,000

 
$

 
$

 
$
10,000

Canadian and provincial government securities
 
8,747

 

 
(464
)
 
8,283

Canadian guaranteed investment certificates
 
7,614

 

 

 
7,614

Available-for-sale debt securities
 
$
26,361

 
$

 
$
(464
)
 
$
25,897


(1) Funds held for customers, as reported on the consolidated balance sheet as of June 30, 2018, also included cash of $66,709.

 
 
December 31, 2017
(in thousands)
 
Cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
Funds held for customers:(1)
 
 
 
 
 
 
 
 
Domestic money market fund
 
$
17,300

 
$

 
$

 
$
17,300

Canadian and provincial government securities
 
9,051

 

 
(393
)
 
8,658

Canadian guaranteed investment certificates
 
7,955

 

 

 
7,955

Available-for-sale debt securities
 
$
34,306

 
$

 
$
(393
)
 
$
33,913

 
(1) Funds held for customers, as reported on the consolidated balance sheet as of December 31, 2017, also included cash of $52,279.
 
Expected maturities of available-for-sale debt securities as of June 30, 2018 were as follows:
(in thousands)
 
Fair value
Due in one year or less
 
$
20,588

Due in two to five years
 
3,578

Due in six to ten years
 
1,731

Available-for-sale debt securities
 
$
25,897



Further information regarding the fair value of available-for-sale debt securities can be found in Note 7.

Assets held for sale – Assets held for sale as of June 30, 2018 included a provider of printed and promotional products, a small business distributor and a small business customer list. Assets held for sale as of December 31, 2017 included 2 providers of printed and promotional products, 1 of which was sold during the second quarter of 2018, and 2 small business distributors, 1 of which was sold during the first quarter of 2018. Also during the six months ended June 30, 2018, we sold certain small business customer lists that previously did not meet the requirements to be reported as assets held for sale in the consolidated balance sheets. We determined that the assets sold would be better positioned for long-term growth if they were managed by independent distributors. Subsequent to the sales, the businesses and customer lists are owned by distributors that are part of our Safeguard® distributor network. As such, our revenue is not impacted by these sales, and the impact to our costs is not significant. We entered into aggregate notes receivable of $22,715 in conjunction with these sales (non-cash investing activity), and we recognized aggregate net gains within SG&A expense of $3,862 during the quarter ended