Document
Document - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 28, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-7945 | |
Entity Registrant Name | DELUXE CORPORATION | |
Entity Central Index Key | 0000027996 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 41-0216800 | |
Entity Address, Address Line One | 3680 Victoria St. N. | |
Entity Address, City or Town | Shoreview | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55126-2966 | |
City Area Code | 651 | |
Local Phone Number | 483-7111 | |
Title of 12(b) Security | Common Stock, par value $1.00 per share | |
Trading Symbol | DLX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,201,575 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 125,440 | $ 123,122 |
Trade accounts receivable, net of allowances for uncollectible accounts | 139,547 | 161,959 |
Inventories and supplies | 37,119 | 40,130 |
Funds held for customers, including securities carried at fair value of $25,391 and $28,462, respectively | 122,466 | 119,749 |
Revenue in excess of billings | 27,655 | 17,617 |
Other current assets | 52,269 | 44,054 |
Total current assets | 504,496 | 506,631 |
Deferred income taxes | 4,636 | 5,444 |
Long-term investments | 46,147 | 45,919 |
Property, plant and equipment, net of accumulated depreciation of $360,161 and $360,907, respectively | 87,836 | 88,680 |
Operating lease assets | 41,288 | 35,906 |
Intangibles, net of accumulated amortization of $610,707 and $587,273, respectively | 254,152 | 246,760 |
Goodwill | 736,862 | 736,844 |
Other non-current assets | 217,835 | 208,679 |
Total assets | 1,893,252 | 1,874,863 |
Current liabilities: | ||
Accounts payable | 109,064 | 116,990 |
Funds held for customers | 120,581 | 117,647 |
Accrued liabilities | 174,923 | 177,183 |
Total current liabilities | 404,568 | 411,820 |
Long-term debt | 840,000 | 840,000 |
Operating lease liabilities | 34,288 | 28,344 |
Deferred income taxes | 15,265 | 10,643 |
Other non-current liabilities | 40,312 | 43,218 |
Commitments and contingencies (Notes 12 and 15) | ||
Shareholders' equity: | ||
Common shares $1 par value (authorized: 500,000 shares; outstanding: March 31, 2021 - 42,104; December 31, 2020 - 41,973) | 42,104 | 41,973 |
Additional paid-in capital | 22,306 | 17,558 |
Retained earnings | 534,059 | 522,599 |
Accumulated other comprehensive loss | (39,824) | (41,433) |
Non-controlling interest | 174 | 141 |
Total shareholders' equity | 558,819 | 540,838 |
Total liabilities and shareholders' equity | $ 1,893,252 | $ 1,874,863 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Funds held for customers, securities carried at fair value | $ 25,391 | $ 28,462 |
Accumulated depreciation | 365,187 | 360,907 |
Accumulated amortization | $ 610,707 | $ 587,273 |
Common stock, par value (per share) | $ 1 | $ 1 |
Common stock, shares authorized | 500,000 | 500,000 |
Common stock, shares outstanding | 42,104 | 41,973 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Total revenue | $ 441,264 | $ 486,423 |
Total cost of revenue | (178,509) | (202,049) |
Gross profit | 262,755 | 284,374 |
Selling, general and administrative expense | (212,436) | (237,204) |
Restructuring and integration expense | (14,313) | (17,654) |
Asset impairment charges | 0 | (90,330) |
Operating income (loss) | 36,006 | (60,814) |
Interest expense | (4,524) | (6,999) |
Other income | 2,033 | 4,472 |
Income (loss) before income taxes | 33,515 | (63,341) |
Income tax (provision) benefit | (9,190) | 3,210 |
Net income (loss) | 24,325 | (60,131) |
Net income attributable to non-controlling interest | (33) | 0 |
Net income (loss) attributable to Deluxe | 24,292 | (60,131) |
Total comprehensive income (loss) | 25,934 | (72,138) |
Comprehensive income (loss) attributable to Deluxe | $ 25,901 | $ (72,138) |
Basic earnings (loss) per share | $ 0.58 | $ (1.43) |
Diluted earnings (loss) per share | $ 0.57 | $ (1.45) |
Product [Member] | ||
Total revenue | $ 299,053 | $ 330,687 |
Total cost of revenue | (107,325) | (121,587) |
Service [Member] | ||
Total revenue | 142,211 | 155,736 |
Total cost of revenue | $ (71,184) | $ (80,462) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Adoption of Accounting Standards Update [Member] | Common shares par value [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Retained earnings [Member]Adoption of Accounting Standards Update [Member] | Accumulated other comprehensive loss [Member] | Non-controlling interest [Member] |
Balance, beginning of year at Dec. 31, 2019 | $ 570,861 | $ (3,640) | $ 42,126 | $ 4,086 | $ 572,596 | $ (3,640) | $ (47,947) | |
Balance (in shares) at Dec. 31, 2019 | 42,126 | |||||||
Net income (loss) attributable to Deluxe | $ (60,131) | (60,131) | ||||||
Net income attributable to non-controlling interest | 0 | |||||||
Net income (loss) | (60,131) | |||||||
Cash dividends ($0.30 per share) | (12,861) | (12,861) | ||||||
Common shares issued | $ 1,882 | 81 | 1,801 | |||||
Common shares issued (in shares) | 81 | |||||||
Common shares repurchased | $ (14,000) | (499) | (9,767) | (3,734) | ||||
Common shares repurchased (in shares) | (499) | |||||||
Other common shares retired | $ (796) | (17) | (779) | |||||
Other common shares retired (in shares) | (17) | |||||||
Employee share-based compensation | $ 4,659 | 4,659 | ||||||
Other comprehensive income (loss) | (12,007) | (12,007) | ||||||
Balance, end of period at Mar. 31, 2020 | $ 473,967 | 41,691 | 0 | 492,230 | (59,954) | |||
Balance (in shares) at Mar. 31, 2020 | 41,691 | |||||||
Balance, beginning of year at Dec. 31, 2020 | $ 540,838 | 41,973 | 17,558 | 522,599 | (41,433) | $ 141 | ||
Balance (in shares) at Dec. 31, 2020 | 41,973 | |||||||
Net income (loss) attributable to Deluxe | $ 24,292 | 24,292 | ||||||
Net income attributable to non-controlling interest | 33 | 33 | ||||||
Net income (loss) | 24,325 | |||||||
Cash dividends ($0.30 per share) | (12,832) | (12,832) | ||||||
Common shares issued | $ 1,041 | 194 | 847 | |||||
Common shares issued (in shares) | 194 | |||||||
Common shares repurchased (in shares) | 0 | |||||||
Other common shares retired | $ (2,361) | (63) | (2,298) | |||||
Other common shares retired (in shares) | (63) | |||||||
Employee share-based compensation | $ 6,199 | 6,199 | ||||||
Other comprehensive income (loss) | 1,609 | 1,609 | ||||||
Balance, end of period at Mar. 31, 2021 | $ 558,819 | $ 42,104 | $ 22,306 | $ 534,059 | $ (39,824) | $ 174 | ||
Balance (in shares) at Mar. 31, 2021 | 42,104 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends per share | $ 0.30 | $ 0.30 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 24,325 | $ (60,131) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 4,516 | 4,919 |
Amortization of intangibles | 23,264 | 23,511 |
Operating lease expense | 4,576 | 3,933 |
Asset impairment charges | 0 | 90,330 |
Amortization of prepaid product discounts | 7,440 | 7,077 |
Deferred income taxes | 5,245 | (9,129) |
Employee share-based compensation expense | 6,742 | 3,618 |
Other non-cash items, net | 2,418 | 8,439 |
Changes in assets and liabilities: | ||
Trade accounts receivable | 23,122 | 3,575 |
Inventories and supplies | 1,042 | (3,165) |
Other current assets | (19,711) | (7,403) |
Non-current assets | (9,868) | (917) |
Accounts payable | (3,543) | (10,145) |
Prepaid product discount payments | (9,590) | (7,321) |
Other accrued and non-current liabilities | (20,397) | (20,723) |
Net cash provided by operating activities | 39,581 | 26,468 |
Cash flows from investing activities: | ||
Purchases of capital assets | (21,670) | (14,269) |
Purchases of customer funds marketable securities | (29) | (34) |
Proceeds from customer funds marketable securities | 29 | 34 |
Other | (180) | 354 |
Net cash used by investing activities | (21,850) | (13,915) |
Cash flows from financing activities: | ||
Proceeds from issuing long-term debt | 5,000 | 309,000 |
Payments on long-term debt | (5,000) | (52,500) |
Net change in customer funds obligations | 1,659 | (19,407) |
Proceeds from issuing shares under employee plans | 673 | 1,736 |
Employee taxes paid for shares withheld | (2,360) | (757) |
Payments for common shares repurchased | 0 | (14,000) |
Cash dividends paid to shareholders | (12,932) | (12,714) |
Other | (1,271) | (202) |
Net cash (used) provided by financing activities | (14,231) | 211,156 |
Effect of exchange rate change on cash, cash equivalents, restricted cash and restricted cash equivalents | 1,606 | (12,717) |
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents | 5,106 | 210,992 |
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of year | 229,409 | 174,811 |
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period | $ 234,515 | $ 385,803 |
Consolidated financial statemen
Consolidated financial statements | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated financial statements | The consolidated balance sheet as of March 31, 2021, the consolidated statements of comprehensive income (loss) for the quarters ended March 31, 2021 and 2020, the consolidated statements of shareholders’ equity for the quarters ended March 31, 2021 and 2020 and the consolidated statements of cash flows for the quarters ended March 31, 2021 and 2020 are unaudited. The consolidated balance sheet as of December 31, 2020 was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (GAAP). 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, 2020 (the 2020 Form 10-K). The preparation of our consolidated financial statements requires us to make certain estimates and assumptions affecting the amounts reported in the consolidated financial statements and related notes. We base our estimates on historical experience and on various other factors and assumptions that we believe are reasonable under the circumstances, including the estimated impact of extraordinary events, such as the novel coronavirus (COVID-19) pandemic, the results of which form the basis for making judgments about the carrying values of our assets, liabilities, revenues and expenses and the related disclosure of contingent assets and liabilities. Actual results may differ significantly from our estimates and assumptions, including our estimates of the severity and duration of the COVID-19 pandemic. Further information can be found in Note 15. Comparability – During the second quarter of 2020, we identified certain misstatements in our consolidated statement of cash flows for the quarter ended March 31, 2020. Within cash flows from financing activities, proceeds from issuing long-term debt and payments on long-term debt did not properly reflect the borrowing and payment activity that occurred during the quarter. Additionally, we identified a misstatement related to the presentation of unpaid capital expenditures, which impacted the amount reported for the change in accounts payable within cash provided by operating activities and the amount reported for purchases of capital assets within investing activities. We assessed the materiality of these misstatements on prior period financial statements in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 99, Materiality , codified in Accounting Standards Codification (ASC) 250, Presentation of Financial Statements . We concluded that the misstatements were not material to any prior interim period and therefore, amendments of previously filed reports were not required. In accordance with ASC 250, we have corrected the misstatements by revising the consolidated financial statements appearing herein. The revisions had no impact on total assets, total liabilities, shareholders' equity or net income. The impact of the revisions on the consolidated statement of cash flows for the quarter ended March 31, 2020 was as follows: (in thousands) Previously reported Adjustment Revised Accounts payable $ (18,059) $ 7,914 $ (10,145) Net cash provided by operating activities 18,554 7,914 26,468 Purchases of capital assets (6,355) (7,914) (14,269) Net cash used by investing activities (6,001) (7,914) (13,915) Proceeds from issuing long-term debt 1,011,000 (702,000) 309,000 Payments on long-term debt (754,500) 702,000 (52,500) Net cash provided by financing activities 211,156 — 211,156 Net change in cash, cash equivalents, restricted cash and restricted cash equivalents $ 210,992 $ — $ 210,992 |
New accounting pronouncements
New accounting pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New accounting pronouncements | In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update No. 2019-12, Simplifying the Accounting for Income Taxes . This standard addressed several specific areas of accounting for income taxes. We adopted this standard on January 1, 2021. Portions of the standard were adopted prospectively and certain aspects were required to be adopted using the modified retrospective approach. Adoption of this standard did not require an adjustment to retained earnings and did not have a significant impact on our results of operations or financial position. |
Supplemental balance sheet and
Supplemental balance sheet and cash flow information | 3 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental balance sheet and cash flow information | Trade accounts receivable – Changes in the allowances for uncollectible accounts included within trade accounts receivable were as follows for the quarters ended March 31, 2021 and 2020: Quarter Ended (in thousands) 2021 2020 Balance, beginning of year $ 6,428 $ 4,985 Bad debt (benefit) expense (649) 1,059 Write-offs and other (900) (2,098) Balance, end of period $ 4,879 $ 3,946 Inventories and supplies – Inventories and supplies were comprised of the following: (in thousands) March 31, December 31, Raw materials $ 5,415 $ 5,412 Semi-finished goods 7,916 7,943 Finished goods 31,464 33,513 Supplies 5,263 5,010 Reserve for excess and obsolete items (12,939) (11,748) Inventories and supplies $ 37,119 $ 40,130 Changes in the reserve for excess and obsolete items were as follows for the quarters ended March 31, 2021 and 2020: Quarter Ended (in thousands) 2021 2020 Balance, beginning of year $ 11,748 $ 6,600 Amounts charged to expense 2,013 88 Write-offs (822) (335) Balance, end of period $ 12,939 $ 6,353 Available-for-sale debt securities – Available-for-sale debt securities included within funds held for customers were comprised of the following: March 31, 2021 (in thousands) Cost Gross unrealized gains Gross unrealized losses Fair value Funds held for customers: (1) Domestic money market fund $ 12,000 $ — $ — $ 12,000 Canadian and provincial government securities 9,722 — (311) 9,411 Canadian guaranteed investment certificate 3,980 — — 3,980 Available-for-sale debt securities $ 25,702 $ — $ (311) $ 25,391 (1) Funds held for customers, as reported on the consolidated balance sheet as of March 31, 2021, also included cash of $97,075. December 31, 2020 (in thousands) Cost Gross unrealized gains Gross unrealized losses Fair value Funds held for customers: (1) Domestic money market fund $ 15,000 $ — $ — $ 15,000 Canadian and provincial government securities 9,566 — (33) 9,533 Canadian guaranteed investment certificate 3,929 — — 3,929 Available-for-sale debt securities $ 28,495 $ — $ (33) $ 28,462 (1) Funds held for customers, as reported on the consolidated balance sheet as of December 31, 2020, also included cash of $91,287. Expected maturities of available-for-sale debt securities as of March 31, 2021 were as follows: (in thousands) Fair value Due in one year or less $ 14,550 Due in two to five years 7,971 Due in six to ten years 2,870 Available-for-sale debt securities $ 25,391 Further information regarding the fair value of available-for-sale debt securities can be found in Note 7. Revenue in excess of billings – Revenue in excess of billings was comprised of the following: (in thousands) March 31, December 31, Conditional right to receive consideration $ 20,072 $ 13,950 Unconditional right to receive consideration (1) 7,583 3,667 Revenue in excess of billings $ 27,655 $ 17,617 (1) Represents revenues that are earned but not currently billable under the related contract terms. Trade accounts receivable on the consolidated balance sheets included unbilled receivables of $19,295 as of March 31, 2021 and $21,319 as of December 31, 2020. Intangibles – Intangibles were comprised of the following: March 31, 2021 December 31, 2020 (in thousands) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Amortizable intangibles: Internal-use software $ 397,675 $ (314,125) $ 83,550 $ 380,144 $ (303,422) $ 76,722 Customer lists/relationships 366,241 (212,425) 153,816 352,895 (202,428) 150,467 Software to be sold 36,900 (24,941) 11,959 36,900 (23,884) 13,016 Technology-based intangibles 33,813 (29,163) 4,650 33,813 (27,613) 6,200 Trade names 30,230 (30,053) 177 30,281 (29,926) 355 Intangibles $ 864,859 $ (610,707) $ 254,152 $ 834,033 $ (587,273) $ 246,760 Amortization of intangibles was $23,264 for the quarter ended March 31, 2021 and $23,511 for the quarter ended March 31, 2020. Based on the intangibles in service as of March 31, 2021, estimated future amortization expense is as follows: (in thousands) Estimated Remainder of 2021 $ 65,583 2022 68,285 2023 48,720 2024 23,206 2025 17,327 The following intangibles were acquired during the quarter ended March 31, 2021: (in thousands) Amount Weighted-average amortization period Internal-use software $ 17,321 3 Customer lists/relationships 13,302 8 Acquired intangibles $ 30,623 5 Goodwill – Changes in goodwill by reportable segment and in total for the quarter ended March 31, 2021 were as follows: (in thousands) Payments Cloud Solutions Promotional Solutions Checks Total Balance, December 31, 2020: Goodwill, gross $ 168,165 $ 432,984 $ 252,864 $ 434,812 $ 1,288,825 Accumulated impairment charges — (362,058) (189,923) — (551,981) Goodwill, net of accumulated impairment charges 168,165 70,926 62,941 434,812 736,844 Currency translation adjustment — — 18 — 18 Balance, March 31, 2021 $ 168,165 $ 70,926 $ 62,959 $ 434,812 $ 736,862 Balance, March 31, 2021: Goodwill, gross $ 168,165 $ 432,984 $ 252,882 $ 434,812 $ 1,288,843 Accumulated impairment charges — (362,058) (189,923) — (551,981) Goodwill, net of accumulated impairment charges $ 168,165 $ 70,926 $ 62,959 $ 434,812 $ 736,862 Other non-current assets – Other non-current assets were comprised of the following: (in thousands) March 31, December 31, Postretirement benefit plan asset $ 72,775 $ 71,208 Prepaid product discounts 51,044 50,602 Cloud computing arrangements 38,249 29,242 Loans and notes receivable from distributors, net of allowances for doubtful accounts (1) 27,182 35,068 Deferred sales commissions (2) 15,461 9,199 Other 13,124 13,360 Other non-current assets $ 217,835 $ 208,679 (1) Amount Includes the non-current portion of loans and notes receivable. The current portion of these receivables is included in other current assets on the consolidated balance sheets and was $1,704 as of March 31, 2021 and $2,008 as of December 31, 2020. (2) Amortization of deferred sales commissions was $972 for the quarter ended March 31, 2021 and $882 for the quarter ended March 31, 2020. Changes in the allowances for uncollectible accounts related to loans and notes receivable from distributors were as follows for the quarters ended March 31, 2021 and 2020: Quarter Ended (in thousands) 2021 2020 Balance, beginning of year $ 3,995 $ 284 Adoption of ASU No. 2016-13 — 4,749 Bad debt (benefit) expense (634) 5,382 Balance, end of period $ 3,361 $ 10,415 During the quarter ended March 31, 2020, we recorded a loan-specific allowance related to a distributor that was underperforming. In calculating this reserve, we utilized various valuation techniques to determine the value of the underlying collateral, resulting in an allowance of $6,128 as of March 31, 2020. Other past due receivables and those on non-accrual status were not significant as of March 31, 2021 or December 31, 2020. We categorize loans and notes receivable into risk categories based on information about the ability of borrowers to service their debt, including current financial information, historical payment experience, current economic trends and other factors. The highest quality receivables are assigned a 1-2 internal grade. Those that have a potential weakness requiring management's attention are assigned a 3-4 internal grade. The following table presents loans and notes receivable from distributors, including the current portion, by credit quality indicator and by year of origination, as of March 31, 2021. There were no write-offs or recoveries recorded during the quarter ended March 31, 2021. Loans and notes receivable from distributors amortized cost basis by origination year (in thousands) 2020 2019 2018 2017 Prior Total Risk rating: 1-2 internal grade $ 1,310 $ 587 $ 14,546 $ 11,744 $ 1,481 $ 29,668 3-4 internal grade — 2,579 — — — 2,579 Loans and notes receivable $ 1,310 $ 3,166 $ 14,546 $ 11,744 $ 1,481 $ 32,247 Changes in prepaid product discounts during the quarters ended March 31, 2021 and 2020 were as follows: Quarter Ended (in thousands) 2021 2020 Balance, beginning of year $ 50,602 $ 51,145 Additions (1) 7,890 2,470 Amortization (7,440) (7,077) Other (8) (544) Balance, end of period $ 51,044 $ 45,994 (1) Prepaid product discounts are generally accrued upon contract execution. Cash payments for prepaid product discounts were $9,590 for the quarter ended March 31, 2021 and $7,321 for the quarter ended March 31, 2020. Accrued liabilities – Accrued liabilities were comprised of the following: (in thousands) March 31, December 31, Deferred revenue (1) $ 49,469 $ 42,104 Employee cash bonuses, including sales incentives 17,005 21,090 Prepaid product discounts due within one year 12,640 14,365 Operating lease liabilities 10,914 11,589 Customer rebates 7,046 8,179 Other 77,849 79,856 Accrued liabilities $ 174,923 $ 177,183 (1) $16,121 of the December 31, 2020 amount was recognized as revenue during the quarter ended March 31, 2021. Supplemental cash flow information – The reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents to the consolidated balance sheets was as follows: (in thousands) March 31, March 31, Cash and cash equivalents $ 125,440 $ 310,146 Restricted cash and restricted cash equivalents included in funds held for customers 109,075 75,657 Total cash, cash equivalents, restricted cash and restricted cash equivalents $ 234,515 $ 385,803 |
Earnings (loss) per share
Earnings (loss) per share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (loss) per share | The following table reflects the calculation of basic and diluted earnings (loss) per share. During each period, certain stock options, as noted below, were excluded from the calculation of diluted earnings (loss) per share because their effect would have been antidilutive. Quarter Ended (in thousands, except per share amounts) 2021 2020 Earnings (loss) per share – basic: Net income (loss) $ 24,325 $ (60,131) Net income attributable to non-controlling interest (33) — Net income (loss) attributable to Deluxe 24,292 (60,131) Income allocated to participating securities (19) (21) Income (loss) attributable to Deluxe available to common shareholders $ 24,273 $ (60,152) Weighted-average shares outstanding 42,046 42,028 Earnings (loss) per share – basic $ 0.58 $ (1.43) Earnings (loss) per share – diluted: Net income (loss) $ 24,325 $ (60,131) Net income attributable to non-controlling interest (33) — Net income (loss) attributable to Deluxe 24,292 (60,131) Income allocated to participating securities — (21) Re-measurement of share-based awards classified as liabilities — (775) Income (loss) attributable to Deluxe available to common shareholders $ 24,292 $ (60,927) Weighted-average shares outstanding 42,046 42,028 Dilutive impact of potential common shares 458 37 Weighted-average shares and potential common shares outstanding 42,504 42,065 Earnings (loss) per share – diluted $ 0.57 $ (1.45) Antidilutive options excluded from calculation 2,423 2,214 |
Other comprehensive income (los
Other comprehensive income (loss) | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other comprehensive income (loss) | Reclassification adjustments – Information regarding amounts reclassified from accumulated other comprehensive loss to net income (loss) was as follows: Accumulated other comprehensive loss components Amounts reclassified from accumulated other comprehensive loss Affected line item in consolidated statements of comprehensive income (loss) Quarter Ended (in thousands) 2021 2020 Realized (loss) gain on interest rate swap $ (334) $ 93 Interest expense Tax benefit (expense) 87 (24) Income tax (provision) benefit Realized (loss) gain on interest rate swap, net of tax (247) 69 Net income (loss) Amortization of postretirement benefit plan items: Prior service credit 355 355 Other income Net actuarial loss (407) (575) Other income Total amortization (52) (220) Other income Tax (expense) benefit (31) 12 Income tax (provision) benefit Amortization of postretirement benefit plan items, net of tax (83) (208) Net income (loss) Total reclassifications, net of tax $ (330) $ (139) Accumulated other comprehensive loss – Changes in the components of accumulated other comprehensive loss during the quarter ended March 31, 2021 were as follows: (in thousands) Postretirement benefit plans Net unrealized loss on available-for-sale debt securities (1) Net unrealized loss on cash flow hedge (2) Currency translation adjustment Accumulated other comprehensive loss Balance, December 31, 2020 $ (21,956) $ (90) $ (5,351) $ (14,036) $ (41,433) Other comprehensive (loss) income before reclassifications — (204) 477 1,006 1,279 Amounts reclassified from accumulated other comprehensive loss 83 — 247 — 330 Net current-period other comprehensive income (loss) 83 (204) 724 1,006 1,609 Balance, March 31, 2021 $ (21,873) $ (294) $ (4,627) $ (13,030) $ (39,824) (1) Other comprehensive loss before reclassifications is net of an income tax benefit of $71. (2) Other comprehensive income before reclassifications is net of income tax expense of $168. |
Derivative financial instrument
Derivative financial instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative financial instruments | As part of our interest rate risk management strategy, we entered into an interest rate swap in July 2019, which we designated as a cash flow hedge, to mitigate variability in interest payments on a portion of the amount drawn under our revolving credit facility (Note 11). The interest rate swap, which terminates in March 2023 when our revolving credit facility matures, effectively converts $200,000 of variable rate debt to a fixed rate of 1.798%. Changes in the fair value of the interest rate swap are recorded in accumulated other comprehensive loss on the consolidated balance sheets and are subsequently reclassified to interest expense as interest payments are made on the variable-rate debt. The fair value of the interest rate swap was $6,231 as of March 31, 2021 and $7,210 as of December 31, 2020 and was included in other non-current liabilities on the consolidated balance sheets. The fair value of this derivative is calculated based on the prevailing LIBOR rate curve on the date of measurement. The cash flow hedge was fully effective as of March 31, 2021 and December 31, 2020 and its impact on consolidated net income (loss) and our consolidated statements of cash flows was not significant. We also do not expect the amount to be reclassified to interest expense over the next 12 months to be significant. |
Fair value measurements
Fair value measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Our policies on impairment of goodwill and indefinite-lived intangible assets and impairment of long-lived assets and amortizable intangibles explain our methodology for assessing impairment of these assets and can be found under the caption "Note 1: Significant Accounting Policies" in the Notes to Consolidated Financial Statements appearing in the 2020 Form 10-K. 2020 asset impairment charges – During the quarter ended March 31, 2020, we concluded that a triggering event had occurred for 2 of our reporting units as a result of the COVID-19 pandemic. As such, we completed goodwill impairment analyses for these reporting units as of March 31, 2020. Our analyses indicated that the goodwill of our Promotional Solutions reporting unit was partially impaired and the goodwill of our Cloud Solutions Web Hosting reporting unit was fully impaired. As such, we recorded goodwill impairment charges of $63,356 and $4,317, respectively. The impairment charges were measured as the amount by which the reporting units' carrying values exceeded their estimated fair values, limited to the carrying amount of goodwill. After the impairment charges, $62,785 of goodwill remained in the Promotional Solutions reporting unit as of the measurement date. Also as a result of the impacts of the COVID-19 pandemic, we assessed for impairment certain long-lived assets of our Cloud Solutions Web Hosting reporting unit as of March 31, 2020. As a result of these assessments, we recorded asset impairment charges of $17,678, primarily related to customer list, software and trade name intangible assets. With the exception of certain internal-use software assets, we determined that the assets were fully impaired. We utilized the discounted value of estimated future cash flows to estimate the fair value of the asset group. In our analysis, we assumed a revenue decline of 31% and a gross margin decline of 5.2 points in 2020, as well as a discount rate of 9%. During the first quarter of 2020, we assessed for impairment the carrying value of an asset group related to a small business distributor that we previously purchased. Our assessment was the result of customer attrition during the quarter that impacted our projections of future cash flows. Based on our estimate of discounted future cash flows, we determined that the asset group was partially impaired as of February 29, 2020, and we recorded an asset impairment charge of $2,752, reducing the carrying value of the related customer list intangible asset. In calculating the estimated fair value of the asset group, we assumed no revenue growth, a 1.9 point improvement in gross margin and a discount rate of 11%. Also during the first quarter of 2020, we recorded asset impairment charges of $2,227 related to internal-use software and a small business distributor held for sale. Customer attrition in the business utilizing the software caused us to evaluate the asset for impairment, and this analysis indicated that the software was fully impaired. During the first quarter of 2020, we agreed to sales terms for the small business distributor. Based on the negotiated sales price, we recorded an asset impairment charge to write-down the carrying value of the asset group to its fair value less costs to sell. Information regarding the asset impairment analyses completed during the quarter ended March 31, 2020 was as follows: Fair value measurements using Fair value as of measurement date Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Impairment charge (in thousands) (Level 1) (Level 2) (Level 3) Intangible assets (Cloud Solutions Web Hosting reporting unit) (1) $ 2,172 $ — $ — $ 2,172 $ 17,678 Small business distributor 7,622 — — 7,622 2,752 Other assets 1,412 — — 1,412 2,227 Goodwill 67,673 Total $ 90,330 (1) The impairment charge consisted of $8,397 related to customer lists, $6,932 related to internal-use software and $2,349 related to other intangible assets. Recurring fair value measurements – Funds held for customers included available-for-sale debt securities (Note 3). These securities included a money market fund that is traded in an active market, a mutual fund investment that invests in Canadian and provincial government securities, and an investment in a Canadian guaranteed investment certificate (GIC) with a maturity of 2 years. The cost of the money market fund approximates its fair value because of the short-term nature of the investment. The cost of the GIC approximates its fair value, based on estimates using current market rates offered for deposits with similar remaining maturities. The mutual fund investment is not traded in an active market and its fair value is determined by obtaining quoted prices in active markets for the underlying securities held by the fund. Unrealized gains and losses, net of tax, are included in accumulated other comprehensive loss on the consolidated balance sheets. The cost of securities sold is determined using the average cost method. Realized gains and losses are included in revenue on the consolidated statements of comprehensive income (loss) and were not significant during the quarters ended March 31, 2021 and 2020. Information regarding the fair values of our financial instruments was as follows: Fair value measurements using March 31, 2021 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs (in thousands) Balance sheet location Carrying value Fair value Measured at fair value through comprehensive income (loss): Cash equivalents Funds held for customers $ 12,000 $ 12,000 $ 12,000 $ — $ — Available-for-sale debt securities Funds held for customers 13,391 13,391 — 13,391 — Derivative liability (Note 6) Other non-current liabilities (6,231) (6,231) — (6,231) — Amortized cost: Cash Cash and cash equivalents 125,440 125,440 125,440 — — Cash Funds held for customers 97,075 97,075 97,075 — — Loans and notes receivable from distributors Other current and non-current assets 28,886 28,843 — — 28,843 Long-term debt Long-term debt 840,000 840,000 — 840,000 — Fair value measurements using December 31, 2020 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs (in thousands) Balance sheet location Carrying value Fair value Measured at fair value through comprehensive income (loss): Cash equivalents Funds held for customers $ 15,000 $ 15,000 $ 15,000 $ — $ — Available-for-sale debt securities Funds held for customers 13,462 13,462 — 13,462 — Derivative liability (Note 6) Other non-current liabilities (7,210) (7,210) — (7,210) — Amortized cost: Cash Cash and cash equivalents 123,122 123,122 123,122 — — Cash Funds held for customers 91,287 91,287 91,287 — — Loans and notes receivable from distributors Other current and non-current assets 37,076 36,950 — — 36,950 Long-term debt Long-term debt 840,000 840,000 — 840,000 — |
Restructuring and integration e
Restructuring and integration expense | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and integration expense | Restructuring and integration expense consists of costs related to the consolidation and migration of certain applications and processes, including our financial and sales management systems. It also includes costs related to the integration of acquired businesses into our systems and processes. These costs consist primarily of information technology consulting, project management services and internal labor, as well as other costs associated with our initiatives, such as training, travel and relocation and costs associated with facility closures. In addition, we recorded employee severance costs related to these initiatives, as well as our ongoing cost reduction initiatives across functional areas. We are currently pursuing several initiatives designed to focus on our growth strategy and to increase our efficiency. Restructuring and integration expense is not allocated to our reportable business segments. Restructuring and integration expense is reflected on the consolidated statements of comprehensive income (loss) as follows: Quarter Ended (in thousands) 2021 2020 Total cost of revenue $ 899 $ 829 Operating expenses 14,313 17,654 Restructuring and integration expense $ 15,212 $ 18,483 Restructuring and integration expense for each period was comprised of the following: Quarter Ended (in thousands) 2021 2020 External consulting fees $ 7,383 $ 10,901 Internal labor 2,041 1,853 Employee severance benefits 857 5,083 Other 4,931 646 Restructuring and integration expense $ 15,212 $ 18,483 Our restructuring and integration accruals are included in accrued liabilities on the consolidated balance sheets and represent expected cash payments required to satisfy the remaining severance obligations to those employees already terminated and those expected to be terminated under our various initiatives. The majority of the employee reductions are expected to be completed in the second quarter of 2021, and we expect most of the related severance payments to be paid by mid-2021, utilizing cash from operations. Changes in our restructuring and integration accruals were as follows: (in thousands) Employee severance benefits Balance, December 31, 2020 $ 6,798 Charges 1,877 Reversals (1,020) Payments (5,701) Balance, March 31, 2021 $ 1,954 The charges and reversals presented in the rollforward of our restructuring and integration accruals do not include items charged directly to expense as incurred, as those items are not reflected in accrued liabilities on the consolidated balance sheets. |
Income tax provision (benefit)
Income tax provision (benefit) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income tax provision | The effective tax rate on pre-tax income (loss) reconciles to the U.S. federal statutory tax rate as follows: Quarter Ended March 31, 2021 Year Ended December 31, 2020 Income tax at federal statutory rate 21.0 % 21.0 % Goodwill impairment charges (Note 7) — 39.2 % State income tax expense, net of federal income tax benefit 3.8 % 1.7 % Tax impact of share-based compensation 2.1 % 7.4 % Non-deductible executive compensation 0.9 % 2.0 % Foreign tax rate differences 0.6 % 3.7 % Change in unrecognized tax benefits, including interest and penalties 0.3 % (2.9 %) Payables and receivables for prior year tax returns (0.9 %) 2.8 % Research and development tax credit (0.6 %) (3.3 %) Return to provision adjustments — (2.3 %) Change in valuation allowances — 0.8 % Other 0.2 % 0.8 % Effective tax rate 27.4 % 70.9 % |
Postretirement benefits
Postretirement benefits | 3 Months Ended |
Mar. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Postretirement benefits | We have historically provided certain health care benefits for a large number of retired U.S. employees. In addition to our retiree health care plan, we also have a U.S. supplemental executive retirement plan. Further information regarding our postretirement benefit plans can be found under the caption “Note 14: Postretirement Benefits” in the Notes to Consolidated Financial Statements appearing in the 2020 Form 10-K. Postretirement benefit income is included in other income on the consolidated statements of comprehensive income (loss) and consisted of the following components: Quarter Ended (in thousands) 2021 2020 Interest cost $ 242 $ 478 Expected return on plan assets (1,875) (1,905) Amortization of prior service credit (355) (355) Amortization of net actuarial losses 407 575 Net periodic benefit income $ (1,581) $ (1,207) |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt outstanding consisted of amounts drawn on our revolving credit facility of $840,000 as of March 31, 2021 and December 31, 2020. As of March 31, 2021, the total availability under our revolving credit facility was $1,150,000. The facility includes an accordion feature allowing us, subject to lender consent, to increase the credit commitment to an aggregate amount not exceeding $1,425,000. The credit facility matures in March 2023. Our quarterly commitment fee ranges from 0.175% to 0.35% based on our leverage ratio. Amounts drawn under the credit facility had a weighted-average interest rate of 2.00% as of March 31, 2021 and 2.01% as of December 31, 2020. In July 2019, we executed an interest rate swap to convert $200,000 of the amount drawn under the credit facility to fixed rate debt. Further information can be found in Note 6. Borrowings under the credit agreement are collateralized by substantially all of our personal and intangible property. The credit agreement governing our credit facility contains customary covenants regarding limits on levels of subsidiary indebtedness and capital expenditures, liens, investments, acquisitions, certain mergers, certain asset sales outside the ordinary course of business and change in control as defined in the agreement. The agreement also requires us to maintain certain financial ratios, including a maximum leverage ratio of 3.5 and a minimum ratio of consolidated earnings before interest and taxes to consolidated interest expense, as defined in the credit agreement, of 3.0. Additionally, the agreement contains customary representations and warranties and, as a condition to borrowing, requires that all such representations and warranties be true and correct in all material respects on the date of each borrowing, including representations as to no material adverse change in our business, assets, operations or financial condition. There are currently no limitations on the amount of dividends and share repurchases under the terms of our credit agreement. However, if our leverage ratio, defined as total debt less unrestricted cash to EBITDA, should exceed 2.75 to 1, there would be an annual limitation on the amount of dividends and share repurchases. Daily average amounts outstanding under our credit facility were as follows: (in thousands) Quarter Ended March 31, 2021 Year Ended Daily average amount outstanding $ 840,165 $ 1,016,896 Weighted-average interest rate 2.00 % 2.12 % As of March 31, 2021, amounts were available for borrowing under our revolving credit facility as follows: (in thousands) Total Revolving credit facility commitment $ 1,150,000 Amount drawn on revolving credit facility (840,000) Outstanding letters of credit (1) (7,658) Net available for borrowing as of March 31, 2021 $ 302,342 (1) We use standby letters of credit to collateralize certain obligations related primarily to our self-insured workers’ compensation claims, as well as claims for environmental matters, as required by certain states. These letters of credit reduce the amount available for borrowing under our revolving credit facility. |
Other commitments and contingen
Other commitments and contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other commitments and contingencies | Leases – During the third quarter of 2020, we executed a lease on a facility located in Minnesota with a term of 16 years. As this lease has not yet commenced, it was not reflected on the consolidated balance sheets as of March 31, 2021 or December 31, 2020. The total obligation under this lease is approximately $43,000, with approximately $4,000 due in 2022 - 2023, approximately $5,000 due in 2024 - 2025 and the remainder due through 2037. Indemnifications – In the normal course of business, we periodically enter into agreements that incorporate general indemnification language. These indemnification provisions generally encompass third-party claims arising from our products and services, including, without limitation, service failures, breach of security, intellectual property rights, governmental regulations and/or employment-related matters. Performance under these indemnities would generally be triggered by our breach of the terms of the contract. In disposing of assets or businesses, we often provide representations, warranties and/or indemnities to cover various risks, including, for example, unknown damage to the assets, environmental risks involved in the sale of real estate, liability to investigate and remediate environmental contamination at waste disposal sites and manufacturing facilities, and unidentified tax liabilities and legal matters related to periods prior to disposition. We do not have the ability to estimate the potential liability from such indemnities because they relate to unknown conditions. However, we do not believe that any liability under these indemnities would have a material adverse effect on our financial position, annual results of operations or annual cash flows. We have recorded liabilities for known indemnifications related to environmental matters. These liabilities were not significant as of March 31, 2021 or December 31, 2020. Self-insurance – We are self-insured for certain costs, primarily workers' compensation claims and medical and dental benefits for active employees and those employees on long-term disability. The liabilities associated with these items represent our best estimate of the ultimate obligations for reported claims plus those incurred, but not reported, and totaled $8,383 as of March 31, 2021 and $9,046 as of December 31, 2020. These accruals are included in accrued liabilities and other non-current liabilities on the consolidated balance sheets. Our workers' compensation liability is recorded at present value. The difference between the discounted and undiscounted liability was not significant as of March 31, 2021 or December 31, 2020. Our self-insurance liabilities are estimated, in part, by considering historical claims experience, demographic factors and other actuarial assumptions. The estimated accruals for these liabilities could be significantly affected if future events and claims differ from these assumptions and historical trends. Litigation – Recorded liabilities for legal matters, as well as related charges recorded in each period, were not material to our financial position, results of operations or liquidity during the periods presented, and we do not believe that any of the currently identified claims or litigation will materially affect our financial position, results of operations or liquidity, upon resolution. However, litigation is subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, it may cause a material adverse impact on our financial position, results of operations or liquidity in the period in which the ruling occurs or in future periods. |
Shareholders' equity
Shareholders' equity | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' equity | In October 2018, our board of directors authorized the repurchase of up to $500,000 of our common stock. This authorization has no expiration date. No shares were repurchased during the first quarter of 2021 and $287,452 remained available for repurchase under the authorization as of March 31, 2021. |
Business segment information
Business segment information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Business segment information | We operate 4 reportable segments, generally organized by product type, as follows: • Payments – This segment includes our treasury management solutions, including remittance and lockbox processing, remote deposit capture, receivables management, payment processing and paperless treasury management, in addition to payroll and disbursement services, including Deluxe Payment Exchange, and fraud and security services. • Cloud Solutions – This segment includes web hosting and design services, data-driven marketing solutions and hosted solutions, including digital engagement, logo design, financial institution profitability reporting and business incorporation services. • Promotional Solutions – This segment includes business forms, accessories, advertising specialties, promotional apparel, retail packaging and strategic sourcing services. • Checks – This segment includes printed personal and business checks. The accounting policies of the segments are the same as those described in the Notes to Consolidated Financial Statements included in the 2020 Form 10-K. We allocate corporate costs for our shared services functions to our business segments when the costs are directly attributable to a segment. This includes certain sales and marketing, human resources, supply chain, real estate, finance, information technology and legal costs. Costs that are not directly attributable to a business segment are reported as Corporate operations and consist primarily of marketing, accounting, information technology, facilities, executive management and legal, tax and treasury costs that support the corporate function. Corporate operations also includes other income. All of our segments operate primarily in the U.S., with some operations in Canada. In addition, Cloud Solutions has operations in Australia and portions of Europe, as well as partners in Central and South America. Our chief operating decision maker (i.e., our Chief Executive Officer) reviews earnings before interest, taxes, depreciation and amortization (EBITDA) on an adjusted basis for each segment when deciding how to allocate resources and to assess segment operating performance. Adjusted EBITDA for each segment excludes depreciation and amortization expense, interest expense, income tax expense and certain other amounts, which may include, from time to time: asset impairment charges; restructuring, integration and other costs; CEO transition costs; share-based compensation expense; acquisition transaction costs; certain legal-related expense; and gains or losses on sales of businesses and customer lists. Our Chief Executive Officer does not review segment asset information when making investment or operating decisions regarding our reportable business segments. Segment information for the quarters ended March 31, 2021 and 2020 was as follows: Quarter Ended March 31, (in thousands) 2021 2020 Payments: Revenue $ 79,438 $ 77,040 Adjusted EBITDA 18,329 18,023 Cloud Solutions: Revenue 62,220 75,945 Adjusted EBITDA 17,209 14,920 Promotional Solutions: Revenue 124,507 142,794 Adjusted EBITDA 17,714 11,197 Checks: Revenue 175,099 190,644 Adjusted EBITDA 83,534 90,712 Total segment: Revenue $ 441,264 $ 486,423 Adjusted EBITDA 136,786 134,852 The following table presents a reconciliation of total segment adjusted EBITDA to consolidated income (loss) before income taxes: Quarter Ended March 31, (in thousands) 2021 2020 Total segment adjusted EBITDA $ 136,786 $ 134,852 Corporate operations (46,281) (51,518) Depreciation and amortization expense (27,780) (28,430) Interest expense (4,524) (6,999) Net income attributable to non-controlling interest 33 — Asset impairment charges — (90,330) Restructuring, integration and other costs (15,212) (19,633) CEO transition costs — 180 Share-based compensation expense (6,742) (3,618) Acquisition transaction costs (2,765) (9) Certain legal-related benefit — 2,164 Income (loss) before income taxes $ 33,515 $ (63,341) The following tables present revenue disaggregated by our product and service offerings: Quarter Ended March 31, 2021 (in thousands) Payments Cloud Solutions Promotional Solutions Checks Consolidated Checks $ — $ — $ — $ 175,099 $ 175,099 Forms and other products — — 71,781 — 71,781 Treasury management solutions 59,136 — — — 59,136 Marketing and promotional solutions — — 52,726 — 52,726 Data-driven marketing solutions — 33,646 — — 33,646 Web and hosted solutions — 28,574 — — 28,574 Other payments solutions 20,302 — — — 20,302 Total revenue $ 79,438 $ 62,220 $ 124,507 $ 175,099 $ 441,264 Quarter Ended March 31, 2020 (in thousands) Payments Cloud Solutions Promotional Solutions Checks Consolidated Checks $ — $ — $ — $ 190,644 $ 190,644 Forms and other products — — 81,813 — 81,813 Treasury management solutions 56,867 — — — 56,867 Marketing and promotional solutions — — 60,981 — 60,981 Data-driven marketing solutions — 38,997 — — 38,997 Web and hosted solutions — 36,948 — — 36,948 Other payments solutions 20,173 — — — 20,173 Total revenue $ 77,040 $ 75,945 $ 142,794 $ 190,644 $ 486,423 The following tables present revenue disaggregated by geography, based on where items are shipped from or where services are performed: Quarter Ended March 31, 2021 (in thousands) Payments Cloud Solutions Promotional Solutions Checks Consolidated United States $ 68,484 $ 53,512 $ 119,148 $ 169,014 $ 410,158 Foreign, primarily Canada and Australia 10,954 8,708 5,359 6,085 31,106 Total revenue $ 79,438 $ 62,220 $ 124,507 $ 175,099 $ 441,264 Quarter Ended March 31, 2020 (in thousands) Payments Cloud Solutions Promotional Solutions Checks Consolidated United States $ 68,358 $ 68,070 $ 136,814 $ 184,294 $ 457,536 Foreign, primarily Canada and Australia 8,682 7,875 5,980 6,350 28,887 Total revenue $ 77,040 $ 75,945 $ 142,794 $ 190,644 $ 486,423 |
Risks and uncertainties
Risks and uncertainties | 3 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Risks and uncertainties COVID-19 | The impact on our business of the COVID-19 pandemic continues to evolve. As such, we are uncertain of the impact on our future financial condition, liquidity and/or results of operations. This uncertainty affected several of the assumptions made and estimates used in the preparation of these consolidated financial statements. As discussed in Note 7, the COVID-19 pandemic resulted in a goodwill impairment triggering event during the first quarter of 2020, as the adverse economic effects of the pandemic materially decreased demand for the products and services we provide to our customers. The extent to which the pandemic will continue to impact our business depends on future developments, including the severity and duration of the pandemic, the timing and effectiveness of vaccines, business and workforce disruptions and the ultimate number of businesses that fail. Our evaluation of asset impairment required us to make assumptions about these future events over the life of the assets being evaluated. This required significant judgment and actual results may differ significantly from our estimates. As a result of the continuing effects of COVID-19, we may be required to record additional goodwill or other asset impairment charges in the future.We held loans and notes receivable from our Promotional Solutions distributors of $28,886 as of March 31, 2021. These distributors sell our products and services primarily to small businesses, which have been significantly impacted by the COVID-19 pandemic. As of March 31, 2021, our allowance for expected credit losses on these receivables was $3,361, although the majority of this amount was not driven by impacts of the pandemic. We utilized all information known to us in determining this allowance, as well as allowances related to our trade accounts receivable and unbilled receivables. If our assumptions prove to be incorrect, we may be required to record additional bad debt expense in the future. Additionally, uncertainty surrounding the impact of the COVID-19 outbreak could affect estimates we made regarding inventory obsolescence and workers' compensation liabilities and thus, could result in additional expense in the future. |
Subsequent event
Subsequent event | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent event | On April 21, 2021, we entered into an Agreement and Plan of Merger under which First American Payment Systems, L.P. (First American), will become our wholly-owned subsidiary. First American is a large-scale payments technology company that provides partners and merchants with comprehensive in-store, online and mobile payment solutions. The aggregate purchase price payable on the closing date is $960,000 in cash, subject to customary adjustments for cash, debt, net working capital, transaction expenses and certain tax benefits. We expect the acquisition will close during the second quarter of 2021. The transaction is subject to customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended. The shareholders of First American have approved the transaction and no further shareholder approvals are required. The merger agreement contains customary representations, warranties and covenants. From the date of the merger agreement until the closing date, First American is, with limited exceptions, required to conduct its business in the ordinary course consistent with past practice and to comply with certain covenants regarding the operation of its business. The representations and warranties of the parties contained in the merger agreement will terminate and be of no further force and effect as of the closing date, except for those covenants that by their terms expressly apply in whole or in part after the closing of the transaction. We have obtained representation and warranty insurance to cover, subject to certain limitations, losses resulting from potential breaches of First American’s representations and warranties made in the merger agreement. Pursuant to the merger agreement, we are entitled to limited indemnification for certain expenses and losses, if any, that may be incurred after the consummation of the transaction that arise out of certain matters, including a Federal Trade Commission investigation initiated in December 2019 seeking information to determine whether certain subsidiaries of First American may have engaged in conduct prohibited by the Federal Trade Commission Act, the Fair Credit Reporting Act or the Duties of Furnishers of Information. As fully set forth in the merger agreement, our rights to indemnification for any such expenses and losses are limited to the amount of an indemnity holdback, which will be our sole recourse for any such losses. We expect to finance the transaction with a combination of cash on hand and proceeds from new debt. In connection with the merger, we have obtained a $2,200,000 financing commitment from a group of lenders. During the quarter ended March 31, 2021, we recorded related acquisition transaction costs of $2,765, which are included in selling, general and administrative expense on the consolidated statement of comprehensive income. The results of operations for First American will be included in our Payments segment from the date of acquisition. |
Consolidated financial statem_2
Consolidated financial statements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Impact of revision on consolidated statement of cash flows | The impact of the revisions on the consolidated statement of cash flows for the quarter ended March 31, 2020 was as follows: (in thousands) Previously reported Adjustment Revised Accounts payable $ (18,059) $ 7,914 $ (10,145) Net cash provided by operating activities 18,554 7,914 26,468 Purchases of capital assets (6,355) (7,914) (14,269) Net cash used by investing activities (6,001) (7,914) (13,915) Proceeds from issuing long-term debt 1,011,000 (702,000) 309,000 Payments on long-term debt (754,500) 702,000 (52,500) Net cash provided by financing activities 211,156 — 211,156 Net change in cash, cash equivalents, restricted cash and restricted cash equivalents $ 210,992 $ — $ 210,992 |
Supplemental balance sheet an_2
Supplemental balance sheet and cash flow information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventories and supplies | Inventories and supplies – Inventories and supplies were comprised of the following: (in thousands) March 31, December 31, Raw materials $ 5,415 $ 5,412 Semi-finished goods 7,916 7,943 Finished goods 31,464 33,513 Supplies 5,263 5,010 Reserve for excess and obsolete items (12,939) (11,748) Inventories and supplies $ 37,119 $ 40,130 Changes in the reserve for excess and obsolete items were as follows for the quarters ended March 31, 2021 and 2020: Quarter Ended (in thousands) 2021 2020 Balance, beginning of year $ 11,748 $ 6,600 Amounts charged to expense 2,013 88 Write-offs (822) (335) Balance, end of period $ 12,939 $ 6,353 |
Available-for-sale debt securities | Available-for-sale debt securities – Available-for-sale debt securities included within funds held for customers were comprised of the following: March 31, 2021 (in thousands) Cost Gross unrealized gains Gross unrealized losses Fair value Funds held for customers: (1) Domestic money market fund $ 12,000 $ — $ — $ 12,000 Canadian and provincial government securities 9,722 — (311) 9,411 Canadian guaranteed investment certificate 3,980 — — 3,980 Available-for-sale debt securities $ 25,702 $ — $ (311) $ 25,391 (1) Funds held for customers, as reported on the consolidated balance sheet as of March 31, 2021, also included cash of $97,075. December 31, 2020 (in thousands) Cost Gross unrealized gains Gross unrealized losses Fair value Funds held for customers: (1) Domestic money market fund $ 15,000 $ — $ — $ 15,000 Canadian and provincial government securities 9,566 — (33) 9,533 Canadian guaranteed investment certificate 3,929 — — 3,929 Available-for-sale debt securities $ 28,495 $ — $ (33) $ 28,462 (1) Funds held for customers, as reported on the consolidated balance sheet as of December 31, 2020, also included cash of $91,287. |
Expected maturities of available-for-sale debt securities | Expected maturities of available-for-sale debt securities as of March 31, 2021 were as follows: (in thousands) Fair value Due in one year or less $ 14,550 Due in two to five years 7,971 Due in six to ten years 2,870 Available-for-sale debt securities $ 25,391 |
Revenue in excess of billings | Revenue in excess of billings – Revenue in excess of billings was comprised of the following: (in thousands) March 31, December 31, Conditional right to receive consideration $ 20,072 $ 13,950 Unconditional right to receive consideration (1) 7,583 3,667 Revenue in excess of billings $ 27,655 $ 17,617 |
Intangibles | Intangibles – Intangibles were comprised of the following: March 31, 2021 December 31, 2020 (in thousands) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Amortizable intangibles: Internal-use software $ 397,675 $ (314,125) $ 83,550 $ 380,144 $ (303,422) $ 76,722 Customer lists/relationships 366,241 (212,425) 153,816 352,895 (202,428) 150,467 Software to be sold 36,900 (24,941) 11,959 36,900 (23,884) 13,016 Technology-based intangibles 33,813 (29,163) 4,650 33,813 (27,613) 6,200 Trade names 30,230 (30,053) 177 30,281 (29,926) 355 Intangibles $ 864,859 $ (610,707) $ 254,152 $ 834,033 $ (587,273) $ 246,760 |
Estimated future amortization expense | Based on the intangibles in service as of March 31, 2021, estimated future amortization expense is as follows: (in thousands) Estimated Remainder of 2021 $ 65,583 2022 68,285 2023 48,720 2024 23,206 2025 17,327 |
Acquired intangibles | The following intangibles were acquired during the quarter ended March 31, 2021: (in thousands) Amount Weighted-average amortization period Internal-use software $ 17,321 3 Customer lists/relationships 13,302 8 Acquired intangibles $ 30,623 5 |
Goodwill | Goodwill – Changes in goodwill by reportable segment and in total for the quarter ended March 31, 2021 were as follows: (in thousands) Payments Cloud Solutions Promotional Solutions Checks Total Balance, December 31, 2020: Goodwill, gross $ 168,165 $ 432,984 $ 252,864 $ 434,812 $ 1,288,825 Accumulated impairment charges — (362,058) (189,923) — (551,981) Goodwill, net of accumulated impairment charges 168,165 70,926 62,941 434,812 736,844 Currency translation adjustment — — 18 — 18 Balance, March 31, 2021 $ 168,165 $ 70,926 $ 62,959 $ 434,812 $ 736,862 Balance, March 31, 2021: Goodwill, gross $ 168,165 $ 432,984 $ 252,882 $ 434,812 $ 1,288,843 Accumulated impairment charges — (362,058) (189,923) — (551,981) Goodwill, net of accumulated impairment charges $ 168,165 $ 70,926 $ 62,959 $ 434,812 $ 736,862 |
Other non-current assets | Other non-current assets – Other non-current assets were comprised of the following: (in thousands) March 31, December 31, Postretirement benefit plan asset $ 72,775 $ 71,208 Prepaid product discounts 51,044 50,602 Cloud computing arrangements 38,249 29,242 Loans and notes receivable from distributors, net of allowances for doubtful accounts (1) 27,182 35,068 Deferred sales commissions (2) 15,461 9,199 Other 13,124 13,360 Other non-current assets $ 217,835 $ 208,679 (1) Amount Includes the non-current portion of loans and notes receivable. The current portion of these receivables is included in other current assets on the consolidated balance sheets and was $1,704 as of March 31, 2021 and $2,008 as of December 31, 2020. (2) Amortization of deferred sales commissions was $972 for the quarter ended March 31, 2021 and $882 for the quarter ended March 31, 2020. |
Loans and notes receivable by credit quality Indicator | The following table presents loans and notes receivable from distributors, including the current portion, by credit quality indicator and by year of origination, as of March 31, 2021. There were no write-offs or recoveries recorded during the quarter ended March 31, 2021. Loans and notes receivable from distributors amortized cost basis by origination year (in thousands) 2020 2019 2018 2017 Prior Total Risk rating: 1-2 internal grade $ 1,310 $ 587 $ 14,546 $ 11,744 $ 1,481 $ 29,668 3-4 internal grade — 2,579 — — — 2,579 Loans and notes receivable $ 1,310 $ 3,166 $ 14,546 $ 11,744 $ 1,481 $ 32,247 |
Changes in prepaid product discounts | Changes in prepaid product discounts during the quarters ended March 31, 2021 and 2020 were as follows: Quarter Ended (in thousands) 2021 2020 Balance, beginning of year $ 50,602 $ 51,145 Additions (1) 7,890 2,470 Amortization (7,440) (7,077) Other (8) (544) Balance, end of period $ 51,044 $ 45,994 (1) Prepaid product discounts are generally accrued upon contract execution. Cash payments for prepaid product discounts were $9,590 for the quarter ended March 31, 2021 and $7,321 for the quarter ended March 31, 2020. |
Accrued liabilities | Accrued liabilities – Accrued liabilities were comprised of the following: (in thousands) March 31, December 31, Deferred revenue (1) $ 49,469 $ 42,104 Employee cash bonuses, including sales incentives 17,005 21,090 Prepaid product discounts due within one year 12,640 14,365 Operating lease liabilities 10,914 11,589 Customer rebates 7,046 8,179 Other 77,849 79,856 Accrued liabilities $ 174,923 $ 177,183 (1) $16,121 of the December 31, 2020 amount was recognized as revenue during the quarter ended March 31, 2021. |
Supplemental cash flow information | Supplemental cash flow information – The reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents to the consolidated balance sheets was as follows: (in thousands) March 31, March 31, Cash and cash equivalents $ 125,440 $ 310,146 Restricted cash and restricted cash equivalents included in funds held for customers 109,075 75,657 Total cash, cash equivalents, restricted cash and restricted cash equivalents $ 234,515 $ 385,803 |
Trade accounts receivable [Member] | |
Allowances for uncollectible accounts | Trade accounts receivable – Changes in the allowances for uncollectible accounts included within trade accounts receivable were as follows for the quarters ended March 31, 2021 and 2020: Quarter Ended (in thousands) 2021 2020 Balance, beginning of year $ 6,428 $ 4,985 Bad debt (benefit) expense (649) 1,059 Write-offs and other (900) (2,098) Balance, end of period $ 4,879 $ 3,946 |
Loans and notes receivable [Member] | |
Allowances for uncollectible accounts | Changes in the allowances for uncollectible accounts related to loans and notes receivable from distributors were as follows for the quarters ended March 31, 2021 and 2020: Quarter Ended (in thousands) 2021 2020 Balance, beginning of year $ 3,995 $ 284 Adoption of ASU No. 2016-13 — 4,749 Bad debt (benefit) expense (634) 5,382 Balance, end of period $ 3,361 $ 10,415 |
Earnings (loss) per share (Tabl
Earnings (loss) per share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (loss) per share | The following table reflects the calculation of basic and diluted earnings (loss) per share. During each period, certain stock options, as noted below, were excluded from the calculation of diluted earnings (loss) per share because their effect would have been antidilutive. Quarter Ended (in thousands, except per share amounts) 2021 2020 Earnings (loss) per share – basic: Net income (loss) $ 24,325 $ (60,131) Net income attributable to non-controlling interest (33) — Net income (loss) attributable to Deluxe 24,292 (60,131) Income allocated to participating securities (19) (21) Income (loss) attributable to Deluxe available to common shareholders $ 24,273 $ (60,152) Weighted-average shares outstanding 42,046 42,028 Earnings (loss) per share – basic $ 0.58 $ (1.43) Earnings (loss) per share – diluted: Net income (loss) $ 24,325 $ (60,131) Net income attributable to non-controlling interest (33) — Net income (loss) attributable to Deluxe 24,292 (60,131) Income allocated to participating securities — (21) Re-measurement of share-based awards classified as liabilities — (775) Income (loss) attributable to Deluxe available to common shareholders $ 24,292 $ (60,927) Weighted-average shares outstanding 42,046 42,028 Dilutive impact of potential common shares 458 37 Weighted-average shares and potential common shares outstanding 42,504 42,065 Earnings (loss) per share – diluted $ 0.57 $ (1.45) Antidilutive options excluded from calculation 2,423 2,214 |
Other comprehensive income (l_2
Other comprehensive income (loss) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Reclassification adjustments | Reclassification adjustments – Information regarding amounts reclassified from accumulated other comprehensive loss to net income (loss) was as follows: Accumulated other comprehensive loss components Amounts reclassified from accumulated other comprehensive loss Affected line item in consolidated statements of comprehensive income (loss) Quarter Ended (in thousands) 2021 2020 Realized (loss) gain on interest rate swap $ (334) $ 93 Interest expense Tax benefit (expense) 87 (24) Income tax (provision) benefit Realized (loss) gain on interest rate swap, net of tax (247) 69 Net income (loss) Amortization of postretirement benefit plan items: Prior service credit 355 355 Other income Net actuarial loss (407) (575) Other income Total amortization (52) (220) Other income Tax (expense) benefit (31) 12 Income tax (provision) benefit Amortization of postretirement benefit plan items, net of tax (83) (208) Net income (loss) Total reclassifications, net of tax $ (330) $ (139) |
Accumulated other comprehensive loss | Accumulated other comprehensive loss – Changes in the components of accumulated other comprehensive loss during the quarter ended March 31, 2021 were as follows: (in thousands) Postretirement benefit plans Net unrealized loss on available-for-sale debt securities (1) Net unrealized loss on cash flow hedge (2) Currency translation adjustment Accumulated other comprehensive loss Balance, December 31, 2020 $ (21,956) $ (90) $ (5,351) $ (14,036) $ (41,433) Other comprehensive (loss) income before reclassifications — (204) 477 1,006 1,279 Amounts reclassified from accumulated other comprehensive loss 83 — 247 — 330 Net current-period other comprehensive income (loss) 83 (204) 724 1,006 1,609 Balance, March 31, 2021 $ (21,873) $ (294) $ (4,627) $ (13,030) $ (39,824) (1) Other comprehensive loss before reclassifications is net of an income tax benefit of $71. (2) Other comprehensive income before reclassifications is net of income tax expense of $168. |
Fair value measurements (Tables
Fair value measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | sset impairment analyses completed during the quarter ended March 31, 2020 was as follows: Fair value measurements using Fair value as of measurement date Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Impairment charge (in thousands) (Level 1) (Level 2) (Level 3) Intangible assets (Cloud Solutions Web Hosting reporting unit) (1) $ 2,172 $ — $ — $ 2,172 $ 17,678 Small business distributor 7,622 — — 7,622 2,752 Other assets 1,412 — — 1,412 2,227 Goodwill 67,673 Total $ 90,330 |
Fair value of financial instruments | Information regarding the fair values of our financial instruments was as follows: Fair value measurements using March 31, 2021 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs (in thousands) Balance sheet location Carrying value Fair value Measured at fair value through comprehensive income (loss): Cash equivalents Funds held for customers $ 12,000 $ 12,000 $ 12,000 $ — $ — Available-for-sale debt securities Funds held for customers 13,391 13,391 — 13,391 — Derivative liability (Note 6) Other non-current liabilities (6,231) (6,231) — (6,231) — Amortized cost: Cash Cash and cash equivalents 125,440 125,440 125,440 — — Cash Funds held for customers 97,075 97,075 97,075 — — Loans and notes receivable from distributors Other current and non-current assets 28,886 28,843 — — 28,843 Long-term debt Long-term debt 840,000 840,000 — 840,000 — Fair value measurements using December 31, 2020 Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs (in thousands) Balance sheet location Carrying value Fair value Measured at fair value through comprehensive income (loss): Cash equivalents Funds held for customers $ 15,000 $ 15,000 $ 15,000 $ — $ — Available-for-sale debt securities Funds held for customers 13,462 13,462 — 13,462 — Derivative liability (Note 6) Other non-current liabilities (7,210) (7,210) — (7,210) — Amortized cost: Cash Cash and cash equivalents 123,122 123,122 123,122 — — Cash Funds held for customers 91,287 91,287 91,287 — — Loans and notes receivable from distributors Other current and non-current assets 37,076 36,950 — — 36,950 Long-term debt Long-term debt 840,000 840,000 — 840,000 — |
Restructuring and integration_2
Restructuring and integration expense (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and integration expense | Restructuring and integration expense is reflected on the consolidated statements of comprehensive income (loss) as follows: Quarter Ended (in thousands) 2021 2020 Total cost of revenue $ 899 $ 829 Operating expenses 14,313 17,654 Restructuring and integration expense $ 15,212 $ 18,483 Restructuring and integration expense for each period was comprised of the following: Quarter Ended (in thousands) 2021 2020 External consulting fees $ 7,383 $ 10,901 Internal labor 2,041 1,853 Employee severance benefits 857 5,083 Other 4,931 646 Restructuring and integration expense $ 15,212 $ 18,483 |
Changes in restructuring and integration accruals | Changes in our restructuring and integration accruals were as follows: (in thousands) Employee severance benefits Balance, December 31, 2020 $ 6,798 Charges 1,877 Reversals (1,020) Payments (5,701) Balance, March 31, 2021 $ 1,954 |
Income tax provision (benefit)
Income tax provision (benefit) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Effective income tax rate reconciliation | The effective tax rate on pre-tax income (loss) reconciles to the U.S. federal statutory tax rate as follows: Quarter Ended March 31, 2021 Year Ended December 31, 2020 Income tax at federal statutory rate 21.0 % 21.0 % Goodwill impairment charges (Note 7) — 39.2 % State income tax expense, net of federal income tax benefit 3.8 % 1.7 % Tax impact of share-based compensation 2.1 % 7.4 % Non-deductible executive compensation 0.9 % 2.0 % Foreign tax rate differences 0.6 % 3.7 % Change in unrecognized tax benefits, including interest and penalties 0.3 % (2.9 %) Payables and receivables for prior year tax returns (0.9 %) 2.8 % Research and development tax credit (0.6 %) (3.3 %) Return to provision adjustments — (2.3 %) Change in valuation allowances — 0.8 % Other 0.2 % 0.8 % Effective tax rate 27.4 % 70.9 % |
Postretirement benefits (Tables
Postretirement benefits (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Components of net periodic benefit income | Postretirement benefit income is included in other income on the consolidated statements of comprehensive income (loss) and consisted of the following components: Quarter Ended (in thousands) 2021 2020 Interest cost $ 242 $ 478 Expected return on plan assets (1,875) (1,905) Amortization of prior service credit (355) (355) Amortization of net actuarial losses 407 575 Net periodic benefit income $ (1,581) $ (1,207) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Credit facility | Daily average amounts outstanding under our credit facility were as follows: (in thousands) Quarter Ended March 31, 2021 Year Ended Daily average amount outstanding $ 840,165 $ 1,016,896 Weighted-average interest rate 2.00 % 2.12 % As of March 31, 2021, amounts were available for borrowing under our revolving credit facility as follows: (in thousands) Total Revolving credit facility commitment $ 1,150,000 Amount drawn on revolving credit facility (840,000) Outstanding letters of credit (1) (7,658) Net available for borrowing as of March 31, 2021 $ 302,342 (1) We use standby letters of credit to collateralize certain obligations related primarily to our self-insured workers’ compensation claims, as well as claims for environmental matters, as required by certain states. These letters of credit reduce the amount available for borrowing under our revolving credit facility. |
Business segment information (T
Business segment information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Business segment information | egment information for the quarters ended March 31, 2021 and 2020 was as follows: Quarter Ended March 31, (in thousands) 2021 2020 Payments: Revenue $ 79,438 $ 77,040 Adjusted EBITDA 18,329 18,023 Cloud Solutions: Revenue 62,220 75,945 Adjusted EBITDA 17,209 14,920 Promotional Solutions: Revenue 124,507 142,794 Adjusted EBITDA 17,714 11,197 Checks: Revenue 175,099 190,644 Adjusted EBITDA 83,534 90,712 Total segment: Revenue $ 441,264 $ 486,423 Adjusted EBITDA 136,786 134,852 |
Reconciliation of adjusted EBITDA to pretax income (loss) | The following table presents a reconciliation of total segment adjusted EBITDA to consolidated income (loss) before income taxes: Quarter Ended March 31, (in thousands) 2021 2020 Total segment adjusted EBITDA $ 136,786 $ 134,852 Corporate operations (46,281) (51,518) Depreciation and amortization expense (27,780) (28,430) Interest expense (4,524) (6,999) Net income attributable to non-controlling interest 33 — Asset impairment charges — (90,330) Restructuring, integration and other costs (15,212) (19,633) CEO transition costs — 180 Share-based compensation expense (6,742) (3,618) Acquisition transaction costs (2,765) (9) Certain legal-related benefit — 2,164 Income (loss) before income taxes $ 33,515 $ (63,341) |
Revenue disaggregated by product and service offerings | The following tables present revenue disaggregated by our product and service offerings: Quarter Ended March 31, 2021 (in thousands) Payments Cloud Solutions Promotional Solutions Checks Consolidated Checks $ — $ — $ — $ 175,099 $ 175,099 Forms and other products — — 71,781 — 71,781 Treasury management solutions 59,136 — — — 59,136 Marketing and promotional solutions — — 52,726 — 52,726 Data-driven marketing solutions — 33,646 — — 33,646 Web and hosted solutions — 28,574 — — 28,574 Other payments solutions 20,302 — — — 20,302 Total revenue $ 79,438 $ 62,220 $ 124,507 $ 175,099 $ 441,264 Quarter Ended March 31, 2020 (in thousands) Payments Cloud Solutions Promotional Solutions Checks Consolidated Checks $ — $ — $ — $ 190,644 $ 190,644 Forms and other products — — 81,813 — 81,813 Treasury management solutions 56,867 — — — 56,867 Marketing and promotional solutions — — 60,981 — 60,981 Data-driven marketing solutions — 38,997 — — 38,997 Web and hosted solutions — 36,948 — — 36,948 Other payments solutions 20,173 — — — 20,173 Total revenue $ 77,040 $ 75,945 $ 142,794 $ 190,644 $ 486,423 |
Revenue disaggregated by geography | he following tables present revenue disaggregated by geography, based on where items are shipped from or where services are performed: Quarter Ended March 31, 2021 (in thousands) Payments Cloud Solutions Promotional Solutions Checks Consolidated United States $ 68,484 $ 53,512 $ 119,148 $ 169,014 $ 410,158 Foreign, primarily Canada and Australia 10,954 8,708 5,359 6,085 31,106 Total revenue $ 79,438 $ 62,220 $ 124,507 $ 175,099 $ 441,264 Quarter Ended March 31, 2020 (in thousands) Payments Cloud Solutions Promotional Solutions Checks Consolidated United States $ 68,358 $ 68,070 $ 136,814 $ 184,294 $ 457,536 Foreign, primarily Canada and Australia 8,682 7,875 5,980 6,350 28,887 Total revenue $ 77,040 $ 75,945 $ 142,794 $ 190,644 $ 486,423 |
Consolidated financial statem_3
Consolidated financial statements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounts payable | $ (3,543) | $ (10,145) |
Net cash provided by operating activities | 39,581 | 26,468 |
Purchases of capital assets | (21,670) | (14,269) |
Net cash used by investing activities | (21,850) | (13,915) |
Proceeds from issuing long-term debt | 5,000 | 309,000 |
Payments on long-term debt | (5,000) | (52,500) |
Net cash provided by financing activities | (14,231) | 211,156 |
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents | $ 5,106 | 210,992 |
As previously reported [Member] | ||
Accounts payable | (18,059) | |
Net cash provided by operating activities | 18,554 | |
Purchases of capital assets | (6,355) | |
Net cash used by investing activities | (6,001) | |
Proceeds from issuing long-term debt | 1,011,000 | |
Payments on long-term debt | (754,500) | |
Net cash provided by financing activities | 211,156 | |
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents | 210,992 | |
Adjustment [Member] | ||
Accounts payable | 7,914 | |
Net cash provided by operating activities | 7,914 | |
Purchases of capital assets | (7,914) | |
Net cash used by investing activities | (7,914) | |
Proceeds from issuing long-term debt | (702,000) | |
Payments on long-term debt | 702,000 | |
Net cash provided by financing activities | 0 | |
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents | $ 0 |
Supplemental balance sheet an_3
Supplemental balance sheet and cash flow information (trade accounts receivable, allowances for uncollectible accounts) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounts receivable, allowances for uncollectible accounts [Roll Forward] | ||
Balance, beginning of year | $ 6,428 | $ 4,985 |
Bad debt (benefit) expense | (649) | 1,059 |
Write-offs | (900) | (2,098) |
Balance, end of period | $ 4,879 | $ 3,946 |
Supplemental balance sheet an_4
Supplemental balance sheet and cash flow information (inventories and supplies) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | |
Inventories and supplies | ||||
Raw materials | $ 5,415 | $ 5,412 | ||
Semi-finished goods | 7,916 | 7,943 | ||
Finished goods | 31,464 | 33,513 | ||
Supplies | 5,263 | 5,010 | ||
Reserve for excess and obsolete items | $ (12,939) | $ (6,353) | (12,939) | (11,748) |
Inventories and supplies | $ 37,119 | $ 40,130 | ||
Change in reserve for excess and obsolete items | ||||
Balance, beginning of year | 11,748 | 6,600 | ||
Amounts charged to expense | 2,013 | 88 | ||
Write-offs | (822) | (335) | ||
Balance, end of period | $ 12,939 | $ 6,353 |
Supplemental balance sheet an_5
Supplemental balance sheet and cash flow information (available-for-sale debt securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | ||
Available-for-sale debt securities [Line Items] | ||||
Cost | $ 25,702 | $ 28,495 | ||
Gross unrealized gains | 0 | 0 | ||
Gross unrealized losses | (311) | (33) | ||
Fair value | 25,391 | 28,462 | ||
Expected maturities of available-for-sale debt securities | ||||
Due in one year or less | 14,550 | |||
Due in two to five years | 7,971 | |||
Due in six to ten years | 2,870 | |||
Fair value | 25,391 | 28,462 | ||
Funds held for customers [Member] | ||||
Available-for-sale debt securities [Line Items] | ||||
Cost | 25,702 | [1] | 28,495 | [2] |
Gross unrealized gains | 0 | [1] | 0 | [2] |
Gross unrealized losses | (311) | [1] | (33) | [2] |
Fair value | 25,391 | [1] | 28,462 | [2] |
Cash | 97,075 | 91,287 | ||
Expected maturities of available-for-sale debt securities | ||||
Fair value | 25,391 | [1] | 28,462 | [2] |
Funds held for customers [Member] | Money market securities [Member] | Domestic [Member] | ||||
Available-for-sale debt securities [Line Items] | ||||
Cost | 12,000 | 15,000 | ||
Gross unrealized gains | 0 | 0 | ||
Gross unrealized losses | 0 | 0 | ||
Fair value | 12,000 | 15,000 | ||
Expected maturities of available-for-sale debt securities | ||||
Fair value | 12,000 | 15,000 | ||
Funds held for customers [Member] | Canadian and provincial government securities [Member] | ||||
Available-for-sale debt securities [Line Items] | ||||
Cost | 9,722 | 9,566 | ||
Gross unrealized gains | 0 | 0 | ||
Gross unrealized losses | (311) | (33) | ||
Fair value | 9,411 | 9,533 | ||
Expected maturities of available-for-sale debt securities | ||||
Fair value | 9,411 | 9,533 | ||
Funds held for customers [Member] | Canadian guaranteed investment certificates [Member] | ||||
Available-for-sale debt securities [Line Items] | ||||
Cost | 3,980 | 3,929 | ||
Gross unrealized gains | 0 | 0 | ||
Gross unrealized losses | 0 | 0 | ||
Fair value | 3,980 | 3,929 | ||
Expected maturities of available-for-sale debt securities | ||||
Fair value | $ 3,980 | $ 3,929 | ||
[1] | Funds held for customers, as reported on the consolidated balance sheet as of March 31, 2021, also included cash of $97,075. | |||
[2] | Funds held for customers, as reported on the consolidated balance sheet as of December 31, 2020, also included cash of $91,287. |
Supplemental balance sheet an_6
Supplemental balance sheet and cash flow information (revenue in excess of billings) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Revenue in excess of billings | |||
Conditional right to receive consideration | $ 20,072 | $ 13,950 | |
Unconditional right to receive consideration | [1] | 7,583 | 3,667 |
Revenue in excess of billings | 27,655 | 17,617 | |
Unbilled receivables | $ 19,295 | $ 21,319 | |
[1] | Represents revenues that are earned but not currently billable under the related contract terms. Trade accounts receivable on the consolidated balance sheets included unbilled receivables of $19,295 as of March 31, 2021 and $21,319 as of December 31, 2020. |
Supplemental balance sheet an_7
Supplemental balance sheet and cash flow information (intangibles) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Amortizable intangibles [Line Items] | |||
Gross carrying amount | $ 864,859 | $ 834,033 | |
Accumulated amortization | (610,707) | (587,273) | |
Net carrying amount | 254,152 | 246,760 | |
Acquired intangibles | $ 30,623 | ||
Acquired intangibles, weighted-average amortization period (in years) | 5 years | ||
Amortization of intangibles | $ 23,264 | $ 23,511 | |
Estimated future amortization expense | |||
Remainder of 2021 | 65,583 | ||
2022 | 68,285 | ||
2023 | 48,720 | ||
2024 | 23,206 | ||
2025 | 17,327 | ||
Internal-use software [Member] | |||
Amortizable intangibles [Line Items] | |||
Gross carrying amount | 397,675 | 380,144 | |
Accumulated amortization | (314,125) | (303,422) | |
Net carrying amount | 83,550 | 76,722 | |
Acquired intangibles | $ 17,321 | ||
Acquired intangibles, weighted-average amortization period (in years) | 3 years | ||
Customer lists/relationships [Member] | |||
Amortizable intangibles [Line Items] | |||
Gross carrying amount | $ 366,241 | 352,895 | |
Accumulated amortization | (212,425) | (202,428) | |
Net carrying amount | 153,816 | 150,467 | |
Acquired intangibles | $ 13,302 | ||
Acquired intangibles, weighted-average amortization period (in years) | 8 years | ||
Software to be sold [Member] | |||
Amortizable intangibles [Line Items] | |||
Gross carrying amount | $ 36,900 | 36,900 | |
Accumulated amortization | (24,941) | (23,884) | |
Net carrying amount | 11,959 | 13,016 | |
Technology-based intangibles [Member] | |||
Amortizable intangibles [Line Items] | |||
Gross carrying amount | 33,813 | 33,813 | |
Accumulated amortization | (29,163) | (27,613) | |
Net carrying amount | 4,650 | 6,200 | |
Trade names [Member] | |||
Amortizable intangibles [Line Items] | |||
Gross carrying amount | 30,230 | 30,281 | |
Accumulated amortization | (30,053) | (29,926) | |
Net carrying amount | $ 177 | $ 355 |
Supplemental balance sheet an_8
Supplemental balance sheet and cash flow information (goodwill) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of year | $ 1,288,825 |
Accumulated impairment charges, beginning of year | (551,981) |
Goodwill, net of accumulated impairment charges, beginning of year | 736,844 |
Currency translation adjustment | 18 |
Goodwill, gross, end of period | 1,288,843 |
Accumulated impairment charges, end of period | (551,981) |
Goodwill, net of accumulated impairment charges, end of period | 736,862 |
Reportable business segments [Member] | Payments [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of year | 168,165 |
Accumulated impairment charges, beginning of year | 0 |
Goodwill, net of accumulated impairment charges, beginning of year | 168,165 |
Goodwill, gross, end of period | 168,165 |
Accumulated impairment charges, end of period | 0 |
Goodwill, net of accumulated impairment charges, end of period | 168,165 |
Reportable business segments [Member] | Cloud Solutions [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of year | 432,984 |
Accumulated impairment charges, beginning of year | (362,058) |
Goodwill, net of accumulated impairment charges, beginning of year | 70,926 |
Goodwill, gross, end of period | 432,984 |
Accumulated impairment charges, end of period | (362,058) |
Goodwill, net of accumulated impairment charges, end of period | 70,926 |
Reportable business segments [Member] | Promotional Solutions [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of year | 252,864 |
Accumulated impairment charges, beginning of year | (189,923) |
Goodwill, net of accumulated impairment charges, beginning of year | 62,941 |
Currency translation adjustment | 18 |
Goodwill, gross, end of period | 252,882 |
Accumulated impairment charges, end of period | (189,923) |
Goodwill, net of accumulated impairment charges, end of period | 62,959 |
Reportable business segments [Member] | Checks [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning of year | 434,812 |
Accumulated impairment charges, beginning of year | 0 |
Goodwill, net of accumulated impairment charges, beginning of year | 434,812 |
Goodwill, gross, end of period | 434,812 |
Accumulated impairment charges, end of period | 0 |
Goodwill, net of accumulated impairment charges, end of period | $ 434,812 |
Supplemental balance sheet an_9
Supplemental balance sheet and cash flow information (other non-current assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | ||
Other non-current assets | |||||
Postretirement benefit plan asset | $ 72,775 | $ 71,208 | |||
Prepaid product discounts | 51,044 | $ 45,994 | $ 51,145 | 50,602 | |
Cloud computing arragements | 38,249 | 29,242 | |||
Loans and notes receivable from distributors, net of allowances for doubtful accounts | [1] | 27,182 | 35,068 | ||
Deferred sales commissions | [2] | 15,461 | 9,199 | ||
Other | 13,124 | 13,360 | |||
Other non-current assets | 217,835 | 208,679 | |||
Loans and notes receivable, current | 1,704 | $ 2,008 | |||
Amortization of deferred sales commissions | 972 | 882 | |||
Loans and notes receivable from distributors, allowances for uncollectible accounts [Line Items] | |||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||
Loans and notes receivable from distributors [Member] | |||||
Loans and notes receivable from distributors, allowances for uncollectible accounts [Line Items] | |||||
Balance, beginning of year | 3,995 | 284 | |||
Bad debt (benefit) expense | (634) | 5,382 | |||
Balance, end of period | 3,361 | 10,415 | $ 284 | ||
Write-offs | 0 | ||||
Recoveries | 0 | ||||
Loans and notes receivable from distributors, credit quality information | |||||
2020 | 1,310 | ||||
2019 | 3,166 | ||||
2018 | 14,546 | ||||
2017 | 11,744 | ||||
Prior | 1,481 | ||||
Total | 32,247 | ||||
Loans and notes receivable from distributors [Member] | 1-2 internal grade member [Member] | |||||
Loans and notes receivable from distributors, credit quality information | |||||
2020 | 1,310 | ||||
2019 | 587 | ||||
2018 | 14,546 | ||||
2017 | 11,744 | ||||
Prior | 1,481 | ||||
Total | 29,668 | ||||
Loans and notes receivable from distributors [Member] | 3-4 internal grade [Member] | |||||
Loans and notes receivable from distributors, credit quality information | |||||
2020 | 0 | ||||
2019 | 2,579 | ||||
2018 | 0 | ||||
2017 | 0 | ||||
Prior | 0 | ||||
Total | $ 2,579 | ||||
Loans and notes receivable from distributors [Member] | Adoption of Accounting Standards Update [Member] | |||||
Loans and notes receivable from distributors, allowances for uncollectible accounts [Line Items] | |||||
Balance, beginning of year | $ 4,749 | ||||
Balance, end of period | $ 4,749 | ||||
[1] | Amount Includes the non-current portion of loans and notes receivable. The current portion of these receivables is included in other current assets on the consolidated balance sheets and was $1,704 as of March 31, 2021 and $2,008 as of December 31, 2020. | ||||
[2] | Amortization of deferred sales commissions was $972 for the quarter ended March 31, 2021 and $882 for the quarter ended March 31, 2020. |
Supplemental balance sheet a_10
Supplemental balance sheet and cash flow information (other) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Prepaid product discounts [Roll Forward] | |||||
Balance, beginning of year | $ 50,602 | $ 51,145 | |||
Additions | [1] | 7,890 | 2,470 | ||
Amortization | (7,440) | (7,077) | |||
Other | (8) | (544) | |||
Balance, end of period | 51,044 | 45,994 | |||
Prepaid product discount payments | 9,590 | 7,321 | |||
Accrued liabilities | |||||
Deferred revenue | [2] | 49,469 | $ 42,104 | ||
Employee cash bonuses, including sales incentives | 17,005 | 21,090 | |||
Prepaid product discounts due within one year | 12,640 | 14,365 | |||
Operating lease liabilities | 10,914 | 11,589 | |||
Customer rebates | 7,046 | 8,179 | |||
Other | 77,849 | 79,856 | |||
Accrued liabilities | 174,923 | 177,183 | |||
Deferred revenue recognized | 16,121 | ||||
Supplemental cash flow information | |||||
Cash and cash equivalents | 125,440 | 310,146 | 123,122 | ||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 234,515 | 385,803 | $ 229,409 | $ 174,811 | |
Funds held for customers [Member] | |||||
Supplemental cash flow information | |||||
Restricted cash and restricted cash equivalents included in funds held for customers | $ 109,075 | $ 75,657 | |||
[1] | Prepaid product discounts are generally accrued upon contract execution. Cash payments for prepaid product discounts were $9,590 for the quarter ended March 31, 2021 and $7,321 for the quarter ended March 31, 2020. | ||||
[2] | $16,121 of the December 31, 2020 amount was recognized as revenue during the quarter ended March 31, 2021. |
Earnings (loss) per share (Deta
Earnings (loss) per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings (loss) per share - basic: | ||
Net income (loss) | $ 24,325 | $ (60,131) |
Net income attributable to non-controlling interest | (33) | 0 |
Net income (loss) attributable to Deluxe | 24,292 | (60,131) |
Income allocated to participating securities | (19) | (21) |
Income (loss) attributable to Deluxe available to common shareholders | $ 24,273 | $ (60,152) |
Weighted-average shares outstanding | 42,046 | 42,028 |
Earnings (loss) per share - basic | $ 0.58 | $ (1.43) |
Earnings (loss) per share - diluted: | ||
Net income (loss) | $ 24,325 | $ (60,131) |
Net income attributable to non-controlling interest | (33) | 0 |
Net income (loss) attributable to Deluxe | 24,292 | (60,131) |
Income allocated to participating securities | 0 | (21) |
Re-measurement of share-based awards classified as liabilities | 0 | (775) |
Income (loss) attributable to Deluxe available to common shareholders | $ 24,292 | $ (60,927) |
Weighted-average shares outstanding | 42,046 | 42,028 |
Dilutive impact of potential common shares | 458 | 37 |
Weighted-average shares and potential common shares outstanding | 42,504 | 42,065 |
Earnings (loss) per share - diluted | $ 0.57 | $ (1.45) |
Antidilutive options excluded from calculation | 2,423 | 2,214 |
Other comprehensive income (l_3
Other comprehensive income (loss) (reclassification adjustments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification adjustments [Line Items] | ||
Total reclassifications, net of tax | $ (330) | $ (139) |
Prior service credit [Member] | ||
Reclassification adjustments [Line Items] | ||
Amounts reclassified from accumulated other comprehensive loss | 355 | 355 |
Net actuarial loss [Member] | ||
Reclassification adjustments [Line Items] | ||
Amounts reclassified from accumulated other comprehensive loss | (407) | (575) |
Postretirement benefit plans [Member] | ||
Reclassification adjustments [Line Items] | ||
Amounts reclassified from accumulated other comprehensive loss | (52) | (220) |
Tax (expense) benefit | (31) | 12 |
Total reclassifications, net of tax | (83) | (208) |
Realized (loss) gain on interest rate swap [Member] | ||
Reclassification adjustments [Line Items] | ||
Amounts reclassified from accumulated other comprehensive loss | (334) | 93 |
Tax (expense) benefit | 87 | (24) |
Total reclassifications, net of tax | $ (247) | $ 69 |
Other comprehensive income (l_4
Other comprehensive income (loss) (accumulated other comprehensive loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Accumulated other comprehensive loss [Line Items] | |||
Amounts reclassified from accumulated other comprehensive loss | $ 330 | $ 139 | |
Postretirement benefit plans [Member] | |||
Accumulated other comprehensive loss [Line Items] | |||
Balance, December 31, 2020 | (21,956) | ||
Other comprehensive (loss) income before reclassifications | 0 | ||
Amounts reclassified from accumulated other comprehensive loss | 83 | 208 | |
Net current-period other comprehensive income (loss) | 83 | ||
Balance, March 31, 2021 | (21,873) | ||
Net unrealized loss on available-for-sale debt securities [Member] | |||
Accumulated other comprehensive loss [Line Items] | |||
Balance, December 31, 2020 | (90) | ||
Other comprehensive (loss) income before reclassifications | [1] | (204) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | ||
Net current-period other comprehensive income (loss) | (204) | ||
Balance, March 31, 2021 | (294) | ||
Unrealized loss on securities arising during the period, tax | (71) | ||
Net unrealized loss on cash flow hedge [Member] | |||
Accumulated other comprehensive loss [Line Items] | |||
Balance, December 31, 2020 | (5,351) | ||
Other comprehensive (loss) income before reclassifications | [2] | 477 | |
Amounts reclassified from accumulated other comprehensive loss | 247 | $ (69) | |
Net current-period other comprehensive income (loss) | 724 | ||
Balance, March 31, 2021 | (4,627) | ||
Unrealized gain on cash flow hedge arising during the period, tax | 168 | ||
Currency translation adjustment [Member] | |||
Accumulated other comprehensive loss [Line Items] | |||
Balance, December 31, 2020 | (14,036) | ||
Other comprehensive (loss) income before reclassifications | 1,006 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | ||
Net current-period other comprehensive income (loss) | 1,006 | ||
Balance, March 31, 2021 | (13,030) | ||
Accumulated other comprehensive loss [Member] | |||
Accumulated other comprehensive loss [Line Items] | |||
Balance, December 31, 2020 | (41,433) | ||
Other comprehensive (loss) income before reclassifications | 1,279 | ||
Amounts reclassified from accumulated other comprehensive loss | 330 | ||
Net current-period other comprehensive income (loss) | 1,609 | ||
Balance, March 31, 2021 | $ (39,824) | ||
[1] | Other comprehensive loss before reclassifications is net of an income tax benefit of $71. | ||
[2] | Other comprehensive income before reclassifications is net of income tax expense of $168. |
Derivative financial instrume_2
Derivative financial instruments (Details) - Interest rate swap [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Jul. 19, 2019 |
Derivative [Line Items] | |||
Interest rate swap amount | $ 200,000 | ||
Derivative fixed interest rate | 1.798% | ||
Fair value of derivative liability | $ 6,231 | $ 7,210 |
Fair value measurements (goodwi
Fair value measurements (goodwill and non-recurring asset impairment analyses) (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($)reporting_units | Dec. 31, 2020USD ($) | Feb. 29, 2020USD ($) | |
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Goodwill impairment charges | $ 67,673 | |||
Goodwill | $ 736,862 | $ 736,844 | ||
Total impairment charge | $ 0 | $ 90,330 | ||
Reporting units for which quantitative analysis completed [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Number of reporting units | reporting_units | 2 | |||
Promotional Solutions reporting unit [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Goodwill impairment charges | $ 63,356 | |||
Goodwill | 62,785 | |||
Cloud Solutions Web Hosting reporting unit [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Goodwill impairment charges | 4,317 | |||
Non-recurring fair value measurement [Member] | Assets held for sale [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Asset impairment charges | 2,227 | |||
Other assets | 1,412 | |||
Non-recurring fair value measurement [Member] | Small business distributors [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Estimated fair value, intangibles | $ 7,622 | |||
Non-recurring fair value measurement [Member] | Small business distributors [Member] | Measurement input, revenue growth rate [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Intangibles fair value inputs | 0.00% | |||
Non-recurring fair value measurement [Member] | Small business distributors [Member] | Measurement input, gross margin growth rate [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Intangibles fair value inputs | 1.90% | |||
Non-recurring fair value measurement [Member] | Small business distributors [Member] | Measurement input, discount rate [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Intangibles fair value inputs | 11.00% | |||
Non-recurring fair value measurement [Member] | Amortizable intangibles [Member] | Cloud Solutions Web Hosting reporting unit [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Asset impairment charges | $ 17,678 | |||
Non-recurring fair value measurement [Member] | Amortizable intangibles [Member] | Cloud Solutions Web Hosting reporting unit [Member] | Measurement input, revenue growth rate [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Intangibles fair value inputs | (31.00%) | |||
Non-recurring fair value measurement [Member] | Amortizable intangibles [Member] | Cloud Solutions Web Hosting reporting unit [Member] | Measurement input, gross margin growth rate [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Intangibles fair value inputs | (5.20%) | |||
Non-recurring fair value measurement [Member] | Amortizable intangibles [Member] | Cloud Solutions Web Hosting reporting unit [Member] | Measurement input, discount rate [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Intangibles fair value inputs | 9.00% | |||
Non-recurring fair value measurement [Member] | Customer lists/relationships [Member] | Small business distributors [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Asset impairment charges | $ 2,752 | |||
Non-recurring fair value measurement [Member] | Customer lists/relationships [Member] | Cloud Solutions Web Hosting reporting unit [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Asset impairment charges | 8,397 | |||
Non-recurring fair value measurement [Member] | Internal-use software [Member] | Cloud Solutions Web Hosting reporting unit [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Asset impairment charges | 6,932 | |||
Estimated fair value, intangibles | 2,172 | |||
Non-recurring fair value measurement [Member] | Other intangible assets [Member] | Cloud Solutions Web Hosting reporting unit [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Asset impairment charges | 2,349 | |||
Non-recurring fair value measurement [Member] | Significant unobservable inputs (Level 3) [Member] | Assets held for sale [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Other assets | 1,412 | |||
Non-recurring fair value measurement [Member] | Significant unobservable inputs (Level 3) [Member] | Small business distributors [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Estimated fair value, intangibles | $ 7,622 | |||
Non-recurring fair value measurement [Member] | Significant unobservable inputs (Level 3) [Member] | Internal-use software [Member] | Cloud Solutions Web Hosting reporting unit [Member] | ||||
Goodwill impairment and non-recurring fair value measurements [Line Items] | ||||
Estimated fair value, intangibles | $ 2,172 |
Fair value measurements (financ
Fair value measurements (financial instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2020 | |||
Fair value measurements, financial instruments [Line Items] | ||||
Available-for-sale debt securities (funds held for customers) | $ 25,391 | $ 28,462 | ||
Derivative liability (Note 6) | (6,231) | (7,210) | ||
Loans and notes receivable from distributors | 28,886 | 37,076 | ||
Loans and notes receivable from distributors, fair value | 28,843 | 36,950 | ||
Long-term debt | 840,000 | 840,000 | ||
Long-term debt, fair value | 840,000 | 840,000 | ||
Recurring fair value measurements [Member] | ||||
Fair value measurements, financial instruments [Line Items] | ||||
Derivative liability (Note 6) | (6,231) | (7,210) | ||
Significant other observable inputs (Level 2) [Member] | ||||
Fair value measurements, financial instruments [Line Items] | ||||
Long-term debt, fair value | 840,000 | 840,000 | ||
Significant other observable inputs (Level 2) [Member] | Recurring fair value measurements [Member] | ||||
Fair value measurements, financial instruments [Line Items] | ||||
Derivative liability (Note 6) | (6,231) | (7,210) | ||
Significant unobservable inputs (Level 3) [Member] | ||||
Fair value measurements, financial instruments [Line Items] | ||||
Loans and notes receivable from distributors, fair value | 28,843 | 36,950 | ||
Cash and cash equivalents [Member] | ||||
Fair value measurements, financial instruments [Line Items] | ||||
Cash | 125,440 | 123,122 | ||
Cash, fair value | 125,440 | 123,122 | ||
Cash and cash equivalents [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||||
Fair value measurements, financial instruments [Line Items] | ||||
Cash, fair value | 125,440 | 123,122 | ||
Funds held for customers [Member] | ||||
Fair value measurements, financial instruments [Line Items] | ||||
Available-for-sale debt securities (funds held for customers) | 25,391 | [1] | 28,462 | [2] |
Cash | 97,075 | 91,287 | ||
Cash, fair value | $ 97,075 | 91,287 | ||
Funds held for customers [Member] | Canadian guaranteed investment certificates [Member] | ||||
Fair value measurements, financial instruments [Line Items] | ||||
Maturity period, debt securities | 2 years | |||
Available-for-sale debt securities (funds held for customers) | $ 3,980 | 3,929 | ||
Funds held for customers [Member] | Money market securities [Member] | ||||
Fair value measurements, financial instruments [Line Items] | ||||
Cash equivalents | 12,000 | 15,000 | ||
Funds held for customers [Member] | Money market securities [Member] | Recurring fair value measurements [Member] | ||||
Fair value measurements, financial instruments [Line Items] | ||||
Cash equivalents | 12,000 | 15,000 | ||
Funds held for customers [Member] | Foreign debt securities [Member] | ||||
Fair value measurements, financial instruments [Line Items] | ||||
Available-for-sale debt securities (funds held for customers) | 13,391 | 13,462 | ||
Funds held for customers [Member] | Foreign debt securities [Member] | Recurring fair value measurements [Member] | ||||
Fair value measurements, financial instruments [Line Items] | ||||
Available-for-sale debt securities (funds held for customers) | 13,391 | 13,462 | ||
Funds held for customers [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||||
Fair value measurements, financial instruments [Line Items] | ||||
Cash, fair value | 97,075 | 91,287 | ||
Funds held for customers [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Money market securities [Member] | Recurring fair value measurements [Member] | ||||
Fair value measurements, financial instruments [Line Items] | ||||
Cash equivalents | 12,000 | 15,000 | ||
Funds held for customers [Member] | Significant other observable inputs (Level 2) [Member] | Foreign debt securities [Member] | Recurring fair value measurements [Member] | ||||
Fair value measurements, financial instruments [Line Items] | ||||
Available-for-sale debt securities (funds held for customers) | $ 13,391 | $ 13,462 | ||
[1] | Funds held for customers, as reported on the consolidated balance sheet as of March 31, 2021, also included cash of $97,075. | |||
[2] | Funds held for customers, as reported on the consolidated balance sheet as of December 31, 2020, also included cash of $91,287. |
Restructuring and integration_3
Restructuring and integration expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring and integration expense [Line Items] | ||
Restructuring and integration expense | $ 15,212 | $ 18,483 |
Total cost of revenue [Member] | ||
Restructuring and integration expense [Line Items] | ||
Restructuring and integration expense | 899 | 829 |
Operating expenses [Member] | ||
Restructuring and integration expense [Line Items] | ||
Restructuring and integration expense | 14,313 | 17,654 |
External consulting fees [Member] | ||
Restructuring and integration expense [Line Items] | ||
Restructuring and integration expense | 7,383 | 10,901 |
Internal labor [Member] | ||
Restructuring and integration expense [Line Items] | ||
Restructuring and integration expense | 2,041 | 1,853 |
Employee severance benefits [Member] | ||
Restructuring and integration expense [Line Items] | ||
Restructuring and integration expense | 1,877 | |
Restructuring charges, net | 857 | 5,083 |
Other [Member] | ||
Restructuring and integration expense [Line Items] | ||
Restructuring and integration expense | $ 4,931 | $ 646 |
Restructuring and integration_4
Restructuring and integration expense (accruals) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Charges | $ 15,212 | $ 18,483 |
Employee severance benefits [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance, December 31, 2020 | 6,798 | |
Charges | 1,877 | |
Reversals | (1,020) | |
Payments | (5,701) | |
Balance, March 31, 2021 | $ 1,954 |
Income tax provision (benefit_2
Income tax provision (benefit) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of effective tax rate | ||
Income tax at federal statutory rate | 21.00% | 21.00% |
Goodwill impairment charges (Note 7) | 0.00% | 39.20% |
State income tax, net of federal income tax benefit | 3.80% | 1.70% |
Tax impact of share-based compensation | 2.10% | 7.40% |
Non-deductible executive compensation | 0.90% | 2.00% |
Foreign tax rate differences | 0.60% | 3.70% |
Change in unrecognized tax benefits, including interest and penalties | 0.30% | (2.90%) |
Payables and receivables for prior year tax returns | (0.90%) | 2.80% |
Research and development tax credit | (0.60%) | (3.30%) |
Return to provision adjustments | 0.00% | (2.30%) |
Change in valuation allowances | 0.00% | 0.80% |
Other | 0.20% | 0.80% |
Effective tax rate | 27.40% | 70.90% |
Postretirement benefits (Detail
Postretirement benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net periodic benefit income | ||
Interest cost | $ 242 | $ 478 |
Expected return on plan assets | (1,875) | (1,905) |
Amortization of prior service credit | (355) | (355) |
Amortization of net actuarial losses | 407 | 575 |
Net periodic benefit income | $ (1,581) | $ (1,207) |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Jul. 19, 2019 | ||
Debt instruments [Line Items] | ||||
Amounts drawn on revolving credit facility | $ 840,000 | $ 840,000 | ||
Revolving credit facility, current commitment | 1,150,000 | |||
Revolving credit facility, maximum commitment | $ 1,425,000 | |||
Weighted-average interest rate at period end | 2.00% | 2.01% | ||
Daily average amount outstanding | $ 840,165 | $ 1,016,896 | ||
Weighted-average interest rate | 2.00% | 2.12% | ||
Outstanding letters of credit | [1] | $ (7,658) | ||
Net available for borrowing as of March 31, 2021 | $ 302,342 | |||
Revolving credit facility [Member] | ||||
Debt instruments [Line Items] | ||||
Maximum leverage ratio | 3.5 | |||
Minimum ratio of EBIT to interest expense | 3 | |||
Ratio of total debt less unrestricted cash to EBITDA | 2.75 | |||
Interest rate swap [Member] | ||||
Debt instruments [Line Items] | ||||
Interest rate swap amount | $ 200,000 | |||
Minimum [Member] | ||||
Debt instruments [Line Items] | ||||
Revolving credit facility, commitment fee | 0.175% | |||
Maximum [Member] | ||||
Debt instruments [Line Items] | ||||
Revolving credit facility, commitment fee | 0.35% | |||
[1] | We use standby letters of credit to collateralize certain obligations related primarily to our self-insured workers’ compensation claims, as well as claims for environmental matters, as required by certain states. These letters of credit reduce the amount available for borrowing under our revolving credit facility. |
Other commitments and conting_2
Other commitments and contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Commitments and contingencies [Line Items] | ||
Self-insurance liabilities | $ 8,383 | $ 9,046 |
Minnesota [Member] | ||
Commitments and contingencies [Line Items] | ||
Lease term | 16 years | |
New lease obligation | $ 43,000 | |
Lease obligation due in 2022 - 2023 | 4,000 | |
Lease obligations due in 2024 - 2025 | $ 5,000 |
Shareholders' equity (Details)
Shareholders' equity (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Oct. 24, 2018 | |
Stockholders' Equity Note [Abstract] | |||
Share repurchase program, authorized amount | $ 500,000 | ||
Common shares repurchased (in shares) | 0 | 499 | |
Amount remaining under share repurchase authorization | $ 287,452 |
Business segment information (D
Business segment information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($)segment | |
Business segment information [Line Items] | ||
Number of reportable business segments | segment | 4 | 4 |
Revenue | $ 441,264 | $ 486,423 |
Depreciation and amortization | (27,780) | (28,430) |
Interest expense | (4,524) | (6,999) |
Net income attributable to non-controlling interest | 33 | 0 |
Asset impairment charges | 0 | (90,330) |
Restructuring integration and other costs | (15,212) | (19,633) |
CEO transition costs | 0 | 180 |
Share-based compensation expense | (6,742) | (3,618) |
Acquisition transaction costs | (2,765) | (9) |
Certain legal-related expenses | 0 | 2,164 |
Income (loss) before income taxes | 33,515 | (63,341) |
Reportable business segments [Member] | ||
Business segment information [Line Items] | ||
Revenue | 441,264 | 486,423 |
Adjusted EBITDA | 136,786 | 134,852 |
Reportable business segments [Member] | Payments [Member] | ||
Business segment information [Line Items] | ||
Revenue | 79,438 | 77,040 |
Adjusted EBITDA | 18,329 | 18,023 |
Reportable business segments [Member] | Cloud Solutions [Member] | ||
Business segment information [Line Items] | ||
Revenue | 62,220 | 75,945 |
Adjusted EBITDA | 17,209 | 14,920 |
Reportable business segments [Member] | Promotional Solutions [Member] | ||
Business segment information [Line Items] | ||
Revenue | 124,507 | 142,794 |
Adjusted EBITDA | 17,714 | 11,197 |
Reportable business segments [Member] | Checks [Member] | ||
Business segment information [Line Items] | ||
Revenue | 175,099 | 190,644 |
Adjusted EBITDA | 83,534 | 90,712 |
Corporate [Member] | ||
Business segment information [Line Items] | ||
Adjusted EBITDA | $ (46,281) | $ (51,518) |
Business segment information _2
Business segment information (disaggregated revenue information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregated revenue information | ||
Revenue | $ 441,264 | $ 486,423 |
United States [Member] | ||
Disaggregated revenue information | ||
Revenue | 410,158 | 457,536 |
Foreign, primarily Canada and Australia [Member] | ||
Disaggregated revenue information | ||
Revenue | 31,106 | 28,887 |
Reportable business segments [Member] | ||
Disaggregated revenue information | ||
Revenue | 441,264 | 486,423 |
Reportable business segments [Member] | Payments [Member] | ||
Disaggregated revenue information | ||
Revenue | 79,438 | 77,040 |
Reportable business segments [Member] | Payments [Member] | United States [Member] | ||
Disaggregated revenue information | ||
Revenue | 68,484 | 68,358 |
Reportable business segments [Member] | Payments [Member] | Foreign, primarily Canada and Australia [Member] | ||
Disaggregated revenue information | ||
Revenue | 10,954 | 8,682 |
Reportable business segments [Member] | Cloud Solutions [Member] | ||
Disaggregated revenue information | ||
Revenue | 62,220 | 75,945 |
Reportable business segments [Member] | Cloud Solutions [Member] | United States [Member] | ||
Disaggregated revenue information | ||
Revenue | 53,512 | 68,070 |
Reportable business segments [Member] | Cloud Solutions [Member] | Foreign, primarily Canada and Australia [Member] | ||
Disaggregated revenue information | ||
Revenue | 8,708 | 7,875 |
Reportable business segments [Member] | Promotional Solutions [Member] | ||
Disaggregated revenue information | ||
Revenue | 124,507 | 142,794 |
Reportable business segments [Member] | Promotional Solutions [Member] | United States [Member] | ||
Disaggregated revenue information | ||
Revenue | 119,148 | 136,814 |
Reportable business segments [Member] | Promotional Solutions [Member] | Foreign, primarily Canada and Australia [Member] | ||
Disaggregated revenue information | ||
Revenue | 5,359 | 5,980 |
Reportable business segments [Member] | Checks [Member] | ||
Disaggregated revenue information | ||
Revenue | 175,099 | 190,644 |
Reportable business segments [Member] | Checks [Member] | United States [Member] | ||
Disaggregated revenue information | ||
Revenue | 169,014 | 184,294 |
Reportable business segments [Member] | Checks [Member] | Foreign, primarily Canada and Australia [Member] | ||
Disaggregated revenue information | ||
Revenue | 6,085 | 6,350 |
Checks [Member] | ||
Disaggregated revenue information | ||
Revenue | 175,099 | 190,644 |
Checks [Member] | Reportable business segments [Member] | Checks [Member] | ||
Disaggregated revenue information | ||
Revenue | 175,099 | 190,644 |
Forms and other products [Member] | ||
Disaggregated revenue information | ||
Revenue | 71,781 | 81,813 |
Forms and other products [Member] | Reportable business segments [Member] | Promotional Solutions [Member] | ||
Disaggregated revenue information | ||
Revenue | 71,781 | 81,813 |
Treasury management solutions [Member] | ||
Disaggregated revenue information | ||
Revenue | 59,136 | 56,867 |
Treasury management solutions [Member] | Reportable business segments [Member] | Payments [Member] | ||
Disaggregated revenue information | ||
Revenue | 59,136 | 56,867 |
Marketing and promotional solutions [Member] | ||
Disaggregated revenue information | ||
Revenue | 52,726 | 60,981 |
Marketing and promotional solutions [Member] | Reportable business segments [Member] | Promotional Solutions [Member] | ||
Disaggregated revenue information | ||
Revenue | 52,726 | 60,981 |
Data-driven marketing solutions [Member] | ||
Disaggregated revenue information | ||
Revenue | 33,646 | 38,997 |
Data-driven marketing solutions [Member] | Reportable business segments [Member] | Cloud Solutions [Member] | ||
Disaggregated revenue information | ||
Revenue | 33,646 | 38,997 |
Web and hosted solutions [Member] | ||
Disaggregated revenue information | ||
Revenue | 28,574 | 36,948 |
Web and hosted solutions [Member] | Reportable business segments [Member] | Cloud Solutions [Member] | ||
Disaggregated revenue information | ||
Revenue | 28,574 | 36,948 |
Other payments solutions [Member] | ||
Disaggregated revenue information | ||
Revenue | 20,302 | 20,173 |
Other payments solutions [Member] | Reportable business segments [Member] | Payments [Member] | ||
Disaggregated revenue information | ||
Revenue | $ 20,302 | $ 20,173 |
Risks and uncertainties (Detail
Risks and uncertainties (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and notes receivable from distributors, allowances for uncollectible accounts [Line Items] | ||||
Loans and notes receivable from distributors | $ 28,886 | $ 37,076 | ||
Loans and notes receivable from distributors [Member] | ||||
Loans and notes receivable from distributors, allowances for uncollectible accounts [Line Items] | ||||
Allowance for uncollectible accounts | $ 3,361 | $ 3,995 | $ 10,415 | $ 284 |
Subsequent event (Details)
Subsequent event (Details) - USD ($) $ in Thousands | Apr. 21, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Subsequent event [Line Items] | |||
Acquisition transaction costs | $ 2,765 | $ 9 | |
First American Payment Systems, L.P. [Member] | |||
Subsequent event [Line Items] | |||
Acquisition transaction costs | $ 2,765 | ||
Subsequent event [Member] | First American Payment Systems, L.P. [Member] | |||
Subsequent event [Line Items] | |||
Aggregate purchase price payable | $ 960,000 | ||
Financing commitment | $ 2,200,000 |