Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 17, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | DELUXE CORP | ||
Entity Central Index Key | 27996 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $2,880,308,128 | ||
Common Stock, Shares Outstanding | 49,889,761 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $61,541 | $121,089 |
Trade accounts receivable, net of allowances for uncollectible accounts | 113,656 | 88,049 |
Inventories and supplies | 39,411 | 28,966 |
Deferred income taxes | 10,159 | 6,946 |
Funds held for customers | 43,604 | 42,425 |
Other current assets | 50,519 | 31,838 |
Total current assets | 318,890 | 319,313 |
Deferred income taxes | 1,411 | 1,851 |
Long-term investments (including $2,384 and $2,407 of investments at fair value, respectively) | 46,451 | 44,451 |
Property, plant and equipment, net of accumulated depreciation | 87,623 | 101,343 |
Assets held for sale | 26,819 | 25,451 |
Intangibles, net of accumulated amortization | 207,180 | 153,576 |
Goodwill | 868,376 | 822,777 |
Other non-current assets | 131,641 | 100,767 |
Total assets | 1,688,391 | 1,569,529 |
Current liabilities: | ||
Accounts payable | 87,216 | 71,492 |
Accrued liabilities | 219,121 | 162,990 |
Short-term borrowings | 160,000 | 0 |
Long-term debt due within one year | 911 | 255,589 |
Total current liabilities | 467,248 | 490,071 |
Long-term debt | 393,401 | 385,115 |
Deferred income taxes | 95,838 | 82,814 |
Other non-current liabilities | 84,407 | 61,072 |
Commitments and contingencies (Notes 9, 13 and 14) | ||
Shareholders' equity: | ||
Common shares $1 par value (authorized: 500,000 shares; outstanding: 2014 - 49,742; 2013 - 50,344) | 49,742 | 50,344 |
Additional paid-in capital | 4,758 | 22,596 |
Retained earnings | 629,335 | 510,941 |
Accumulated other comprehensive loss | -36,338 | -33,424 |
Total shareholders' equity | 647,497 | 550,457 |
Total liabilities and shareholders' equity | $1,688,391 | $1,569,529 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
ASSETS | ||
Investments at fair value | $2,384 | $2,407 |
Shareholders' equity: | ||
Common stock, par value (per share) | $1 | $1 |
Common stock, shares authorized | 500,000 | 500,000 |
Common stock, shares outstanding | 49,742 | 50,344 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Product revenue | $1,410,858 | $1,369,711 | $1,345,929 |
Service revenue | 263,224 | 215,113 | 168,988 |
Total revenue | 1,674,082 | 1,584,824 | 1,514,917 |
Cost of products | -501,871 | -463,487 | -446,994 |
Cost of services | -104,407 | -97,629 | -77,381 |
Total cost of revenue | -606,278 | -561,116 | -524,375 |
Gross profit | 1,067,804 | 1,023,708 | 990,542 |
Selling, general and administrative expense | -719,192 | -691,359 | -680,460 |
Net restructuring charges | -8,776 | -9,435 | -7,926 |
Asset impairment charges | -6,468 | -5,000 | 0 |
Net loss on sales of facilities | -735 | 0 | -128 |
Operating income | 332,633 | 317,914 | 302,028 |
Loss on early debt extinguishment | 0 | 0 | -5,258 |
Interest expense | -36,529 | -38,301 | -46,847 |
Other income | 1,077 | 1,446 | 830 |
Income before income taxes | 297,181 | 281,059 | 250,753 |
Income tax provision | -97,387 | -94,407 | -80,261 |
Net income | $199,794 | $186,652 | $170,492 |
Basic earnings per share | $3.99 | $3.68 | $3.33 |
Diluted earnings per share | $3.96 | $3.65 | $3.32 |
Cash dividends per share | $1.15 | $1 | $1 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $199,794 | $186,652 | $170,492 |
Other comprehensive income, net of tax: | |||
Reclassification of loss on derivative instruments from other comprehensive loss to net income | 781 | 1,040 | 1,110 |
Postretirement benefit plans: | |||
Net actuarial gain arising during the year | 1,133 | 8,365 | 15,221 |
Less reclassification of amounts from other comprehensive loss to net income: | |||
Amortization of prior service credit | -866 | -864 | -1,899 |
Amortization of net actuarial loss | 2,202 | 2,928 | 3,653 |
Postretirement benefit plans | 2,469 | 10,429 | 16,975 |
Unrealized gains (losses) on securities: | |||
Unrealized holding gains (losses) on securities arising during the year | 151 | -184 | -29 |
Less reclassification of realized gains from other comprehensive loss to net income | 0 | 0 | -241 |
Unrealized gains (losses) on securities | 151 | -184 | -270 |
Unrealized foreign currency translation adjustment | -6,315 | -4,062 | 939 |
Other comprehensive income | -2,914 | 7,223 | 18,754 |
Comprehensive income | 196,880 | 193,875 | 189,246 |
Income tax (expense) benefit of other comprehensive income included in above amounts: | |||
Reclassification of loss on derivative instruments from other comprehensive loss to net income | -501 | -671 | -676 |
Postretirement benefit plans: | |||
Net actuarial gain arising during the year | -726 | -5,393 | -15,589 |
Less reclassification of amounts from other comprehensive loss to net income: | |||
Amortization of prior service credit | 555 | 557 | 1,157 |
Amortization of net actuarial loss | -1,216 | -1,511 | -2,226 |
Postretirement benefit plans | -1,387 | -6,347 | -16,658 |
Unrealized gains (losses) on securities: | |||
Unrealized holding gains (losses) on securities arising during the year | -53 | 64 | 10 |
Less reclassification of realized gains from other comprehensive loss to net income | 0 | 0 | 86 |
Unrealized gains (losses) on securities | -53 | 64 | 96 |
Total net tax expense included in other comprehensive income | ($1,941) | ($6,954) | ($17,238) |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common shares par value [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive loss [Member] |
In Thousands | |||||
Balance at Dec. 31, 2011 | $302,689 | $50,826 | $55,838 | $255,426 | ($59,401) |
Balance, shares at Dec. 31, 2011 | 50,826 | ||||
Net income | 170,492 | 0 | 0 | 170,492 | 0 |
Cash dividends | -50,918 | 0 | 0 | -50,918 | 0 |
Common shares issued | 20,274 | 1,113 | 19,161 | 0 | 0 |
Common shares issued, shares | 1,113 | ||||
Tax impact of share-based awards | 1,491 | 0 | 1,491 | 0 | 0 |
Common shares repurchased | -27,155 | -999 | -26,156 | 0 | 0 |
Common shares repurchased, shares | -999 | ||||
Other common shares retired | -9,270 | -326 | -8,944 | 0 | 0 |
Other common shares retired, shares | -326 | ||||
Fair value of share-based compensation | 6,578 | 0 | 6,578 | 0 | 0 |
Other comprehensive income (loss) | 18,754 | 0 | 0 | 0 | 18,754 |
Balance at Dec. 31, 2012 | 432,935 | 50,614 | 47,968 | 375,000 | -40,647 |
Balance, shares at Dec. 31, 2012 | 50,614 | ||||
Net income | 186,652 | 0 | 0 | 186,652 | 0 |
Cash dividends | -50,711 | 0 | 0 | -50,711 | 0 |
Common shares issued | 26,655 | 1,182 | 25,473 | 0 | 0 |
Common shares issued, shares | 1,182 | ||||
Tax impact of share-based awards | 2,310 | 0 | 2,310 | 0 | 0 |
Common shares repurchased | -48,798 | -1,162 | -47,636 | 0 | 0 |
Common shares repurchased, shares | -1,162 | ||||
Other common shares retired | -12,760 | -290 | -12,470 | 0 | 0 |
Other common shares retired, shares | -290 | ||||
Fair value of share-based compensation | 6,951 | 0 | 6,951 | 0 | 0 |
Other comprehensive income (loss) | 7,223 | 0 | 0 | 0 | 7,223 |
Balance at Dec. 31, 2013 | 550,457 | 50,344 | 22,596 | 510,941 | -33,424 |
Balance, shares at Dec. 31, 2013 | 50,344 | ||||
Net income | 199,794 | 0 | 0 | 199,794 | 0 |
Cash dividends | -57,603 | 0 | 0 | -57,603 | 0 |
Common shares issued | 15,301 | 720 | 14,581 | 0 | 0 |
Common shares issued, shares | 720 | ||||
Tax impact of share-based awards | 4,398 | 0 | 4,398 | 0 | 0 |
Common shares repurchased | -60,119 | -1,133 | -35,585 | -23,401 | 0 |
Common shares repurchased, shares | -1,133 | ||||
Other common shares retired | -10,649 | -189 | -10,064 | -396 | 0 |
Other common shares retired, shares | -189 | ||||
Fair value of share-based compensation | 8,832 | 0 | 8,832 | 0 | 0 |
Other comprehensive income (loss) | -2,914 | 0 | 0 | 0 | -2,914 |
Balance at Dec. 31, 2014 | $647,497 | $49,742 | $4,758 | $629,335 | ($36,338) |
Balance, shares at Dec. 31, 2014 | 49,742 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $199,794 | $186,652 | $170,492 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 16,767 | 17,822 | 19,922 |
Amortization of intangibles | 49,075 | 46,651 | 45,730 |
Asset impairment charges | 6,468 | 5,000 | 0 |
Amortization of contract acquisition costs | 18,105 | 17,197 | 17,110 |
Deferred income taxes | -7,413 | -2,243 | 6,270 |
Employee share-based compensation expense | 9,776 | 7,562 | 7,292 |
Loss on early debt extinguishment | 0 | 0 | 5,258 |
Other non-cash items, net | 11,162 | 10,741 | 9,371 |
Changes in assets and liabilities, net of effect of acquisitions: | |||
Trade accounts receivable | -21,095 | -14,754 | -2,915 |
Inventories and supplies | -4,353 | -1,594 | -1,629 |
Other current assets | -8,199 | 7,032 | -1,982 |
Non-current assets | -4,153 | -5,976 | 424 |
Accounts payable | 12,218 | 886 | 228 |
Contract acquisition payments | -16,567 | -12,133 | -16,952 |
Other accrued and non-current liabilities | 18,810 | -1,341 | -14,542 |
Net cash provided by operating activities | 280,395 | 261,502 | 244,077 |
Cash flows from investing activities: | |||
Purchases of capital assets | -41,119 | -37,459 | -35,193 |
Payments for acquisitions, net of cash acquired | -105,029 | -69,709 | -34,172 |
Loans to distributors | -50 | -778 | -3,287 |
Proceeds from company-owned life insurance policies | 897 | 4,599 | 0 |
Proceeds from sales of facilities | 8,451 | 0 | 2,613 |
Other | 807 | 2,297 | 1,526 |
Net cash used by investing activities | -136,043 | -101,050 | -68,513 |
Cash flows from financing activities: | |||
Net proceeds from short-term borrowings | 159,875 | 0 | 0 |
Payments on long-term debt, including costs of debt reacquisition | -254,403 | -1,555 | -288,938 |
Proceeds from issuing long-term debt | 0 | 0 | 200,000 |
Payments for debt issue costs | -1,085 | -236 | -4,504 |
Change in book overdrafts | 0 | 0 | -2,600 |
Proceeds from issuing shares under employee plans | 9,148 | 15,948 | 12,320 |
Excess tax benefit from share-based employee awards | 4,992 | 3,055 | 2,285 |
Payments for common shares repurchased | -60,119 | -48,798 | -27,155 |
Cash dividends paid to shareholders | -57,603 | -50,711 | -50,918 |
Other | -150 | 0 | 0 |
Net cash used by financing activities | -199,345 | -82,297 | -159,510 |
Effect of exchange rate change on cash | -4,555 | -2,501 | 694 |
Net change in cash and cash equivalents | -59,548 | 75,654 | 16,748 |
Cash and cash equivalents, beginning of year | 121,089 | 45,435 | 28,687 |
Cash and cash equivalents, end of year | $61,541 | $121,089 | $45,435 |
Significant_accounting_policie
Significant accounting policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Significant accounting policies | Significant accounting policies | |
Nature of operations – We employ a multi-channel strategy to provide a suite of life-cycle driven solutions to our customers. We offer a wide range of products and services to small businesses, including customized checks and forms, as well as website development and hosting, search engine marketing, search engine optimization, and logo design. For financial institutions, we offer industry-leading programs in checks, customer acquisition and loyalty, fraud prevention and profitability, and financial technology solutions, including receivables management. We are also a leading printer of checks and accessories sold directly to consumers. | ||
Consolidation – The consolidated financial statements include the accounts of Deluxe Corporation and its wholly-owned subsidiaries. All intercompany accounts, transactions and profits have been eliminated. | ||
Use of estimates – We have prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. In this process, it is necessary for us to make certain assumptions and estimates affecting the amounts reported in the consolidated financial statements and related notes. These estimates and assumptions are developed based upon all available information. However, actual results can differ from assumed and estimated amounts. | ||
Foreign currency translation – The financial statements of our foreign subsidiaries are measured in the respective subsidiaries' functional currencies, primarily Canadian dollars, and are translated into U.S. dollars. Assets and liabilities are translated using the exchange rates in effect at the balance sheet date. Revenue and expenses are translated at the average exchange rates during the year. The resulting translation gains and losses are reflected in accumulated other comprehensive loss in the shareholders' equity section of the consolidated balance sheets. Foreign currency transaction gains and losses are recorded in other income in the consolidated statements of income. | ||
Cash and cash equivalents – We consider all cash on hand and other highly liquid investments with original maturities of three months or less to be cash and cash equivalents. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate fair value. | ||
Marketable securities – Marketable securities consist of a Canadian money market fund, which is classified as available for sale. The investment is carried at fair value and is included within other current assets in the consolidated balance sheets. Because of the short-term nature of the underlying investments, the cost of these securities approximates their fair value. The cost of securities sold is determined using the average cost method. | ||
Trade accounts receivable – Trade accounts receivable are initially recorded at fair value upon the sale of goods or services to customers. They are stated net of allowances for uncollectible accounts, which represent estimated losses resulting from the inability of customers to make the required payments. When determining the allowances for uncollectible accounts, we take several factors into consideration, including the overall composition of accounts receivable aging, our prior history of accounts receivable write-offs, the type of customer and our day-to-day knowledge of specific customers. Changes in the allowances for uncollectible accounts are included in selling, general and administrative (SG&A) expense in our consolidated statements of income. The point at which uncollected accounts are written off varies by type of customer, but generally does not exceed one year from the due date of the receivable. | ||
Inventories and supplies – Inventories and supplies are stated at the lower of average cost or market. Average cost approximates cost calculated on a first-in, first-out basis. Supplies consist of items not used directly in the production of goods, such as maintenance and other supplies utilized in the production area. | ||
Funds held for customers – Our Canadian payroll services business collects funds from clients to pay their payroll and related taxes. We hold these funds temporarily until payments are remitted to the clients' employees and the appropriate taxing authorities. These funds, consisting of cash and available-for-sale marketable securities, are reported as funds held for customers in the consolidated balance sheets. The corresponding liability for these obligations is included in accrued liabilities in the consolidated balance sheets. The available-for-sale marketable securities are carried at fair value, with unrealized gains and losses included in accumulated other comprehensive loss in the consolidated balance sheets. Realized gains and losses are included in revenue in our consolidated statements of income. Realized gains recognized during 2012 were $327. Amounts recognized during 2014 and 2013 were not significant. | ||
Long-term investments – Long-term investments consist primarily of cash surrender values of life insurance contracts. Additionally, long-term investments include an investment in domestic mutual funds with a fair value of $2,384 as of December 31, 2014 and $2,407 as of December 31, 2013. We have elected to account for this investment under the fair value option for financial assets and financial liabilities. The fair value option provides companies an irrevocable option to measure many financial assets and liabilities at fair value with changes in fair value recognized in earnings. Realized and unrealized gains and losses, as well as dividends earned by the mutual fund investment, are included in SG&A expense in the consolidated statements of income. This investment corresponds to a liability under an officers' deferred compensation plan which is not available to new participants and is fully funded by the investment in mutual funds. The liability under the plan equals the fair value of the investment in mutual funds. Thus, as the value of the investment changes, the value of the liability changes accordingly. As changes in the liability are reflected within SG&A expense in the consolidated statements of income, the fair value option of accounting for the investment in mutual funds allows us to net changes in the investment and the related liability in the consolidated statements of income. The cost of securities sold is determined using the average cost method. | ||
Property, plant and equipment – Property, plant and equipment, including leasehold and other improvements that extend an asset's useful life or productive capabilities, are stated at historical cost. Buildings have been assigned lives of 40 years and machinery and equipment are generally assigned lives ranging from one year to 11 years, with a weighted-average life of eight years as of December 31, 2014. Buildings are depreciated using the 150% declining balance method, and machinery and equipment are depreciated using the sum-of-the-years' digits method. Leasehold and building improvements are depreciated on the straight-line basis over the estimated useful life of the property or the life of the lease, whichever is shorter. Maintenance and repairs are expensed as incurred. | ||
Fully depreciated assets are retained in property, plant and equipment until disposal. Any gains or losses resulting from the disposition of property, plant and equipment are included in SG&A expense in the consolidated statements of income, with the exception of building sales. Such gains and losses are reported separately in the consolidated statements of income. | ||
Intangibles – Intangible assets are stated at historical cost. Amortization expense is generally determined on the straight-line basis over periods ranging from one year to 20 years, with a weighted-average life of six years as of December 31, 2014. Customer lists are generally amortized using accelerated methods which reflect the pattern in which we receive the economic benefit of the asset. Each reporting period, we evaluate the remaining useful lives of our amortizable intangibles to determine whether events or circumstances warrant a revision to the remaining period of amortization. If our estimate of an asset's remaining useful life is revised, the remaining carrying amount of the asset is amortized prospectively over the revised remaining useful life. As of December 31, 2014, we held a trade name asset which has been assigned an indefinite useful life. As such, this asset is not amortized, but is subject to impairment testing on at least an annual basis. Any gains or losses resulting from the disposition of intangibles are included in SG&A expense in the consolidated statements of income. | ||
We capitalize costs of software developed or obtained for internal use, including website development costs, once the preliminary project stage has been completed, management commits to funding the project and it is probable that the project will be completed and the software will be used to perform the function intended. Capitalized costs include only (1) external direct costs of materials and services consumed in developing or obtaining internal-use software, (2) payroll and payroll-related costs for employees who are directly associated with and who devote time to the internal-use software project, and (3) interest costs incurred, when significant, while developing internal-use software. Costs incurred in populating websites with information about the company or products are expensed as incurred. Capitalization of costs ceases when the project is substantially complete and ready for its intended use. The carrying value of internal-use software is reviewed in accordance with our policy on impairment of long-lived assets and amortizable intangibles. | ||
We incur costs in connection with the development of certain software products which we sell to our customers. Costs for the development of software products to be sold are expensed as incurred until technological feasibility is established, at which time, such costs are capitalized until the product is available for general release to customers. We acquired software to be sold via the acquisition of Wausau Financial Systems, Inc. (WFS) in October 2014 (Note 5). | ||
Impairment of long-lived assets and amortizable intangibles – We evaluate the recoverability of property, plant, equipment and amortizable intangibles not held for sale whenever events or changes in circumstances indicate that an asset's carrying amount may not be recoverable. Such circumstances could include, but are not limited to, (1) a significant decrease in the market value of an asset, (2) a significant adverse change in the extent or manner in which an asset is used or in its physical condition, or (3) an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of an asset. We compare the carrying amount of the asset to the estimated undiscounted future cash flows associated with it. If the sum of the expected future net cash flows is less than the carrying value of the asset being evaluated, an impairment loss would be recognized. The impairment loss would be calculated as the amount by which the carrying value of the asset exceeds the fair value of the asset. As quoted market prices are not available for the majority of our assets, the estimate of fair value is based on various valuation techniques, including the discounted value of estimated future cash flows. During 2014 and 2013, we recorded asset impairment charges related to Small Business Services intangible assets. Further information regarding the impairment charges can be found in Note 7: Fair value measurements. | ||
We evaluate the recoverability of property, plant, equipment and intangibles held for sale by comparing the asset's carrying amount with its fair value less costs to sell. Should the fair value less costs to sell be less than the carrying value of the long-lived asset, an impairment loss would be recognized. The impairment loss would be calculated as the amount by which the carrying value of the asset exceeds the fair value of the asset less costs to sell. | ||
The evaluation of asset impairment requires us to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. | ||
Impairment of indefinite-lived intangibles and goodwill – We evaluate the carrying value of indefinite-lived intangibles and goodwill on July 31st of each year and between annual evaluations if events occur or circumstances change that would indicate a possible impairment. Such circumstances could include, but are not limited to, (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, (3) an adverse action or assessment by a regulator, or (4) an adverse change in market conditions which are indicative of a decline in the fair value of the assets. | ||
In completing the annual impairment analysis of our indefinite-lived trade name during the past three years, we elected to perform a quantitative assessment. This assessment compares the carrying amount of the asset to its estimated fair value. The estimate of fair value is based on a relief from royalty method, which calculates the cost savings associated with owning rather than licensing the trade name. An assumed royalty rate is applied to forecasted revenue and the resulting cash flows are discounted. If the estimated fair value is less than the carrying value of the asset, an impairment loss would be recognized for the difference. The impairment analyses completed during the past three years indicated no impairment. In addition to the required impairment analysis, we regularly evaluate the remaining useful life of this asset to determine whether events and circumstances continue to support an indefinite useful life. If we were to determine that the asset has a finite useful life, we would test it for impairment and then amortize its remaining carrying value over its estimated remaining useful life. | ||
In completing our 2014 annual goodwill impairment analysis, we elected to perform a quantitative assessment for all of our reporting units to which goodwill is assigned, as our previous quantitative analysis was completed during 2010. First, we calculated the estimated fair value of each reporting unit to which goodwill is assigned and compared this estimated fair value to the carrying amount of the reporting unit's net assets. In calculating the estimated fair value, we used the income approach. The income approach is a valuation technique under which we estimated future cash flows using the reporting unit's financial forecast from the perspective of an unrelated market participant. Using historical trending and internal forecasting techniques, we projected revenue for the next five years. We applied our fixed and variable cost experience rates to the projected revenue to arrive at the future cash flows. A terminal value was then applied to the projected cash flow stream. Future estimated cash flows were discounted to their present value to calculate the estimated fair value. The discount rate used was the value-weighted average of our estimated cost of capital derived using both known and customary market metrics. In determining the estimated fair values of our reporting units, we were required to estimate a number of factors, including projected operating results, terminal growth rates, economic conditions, anticipated future cash flows, the discount rate and the allocation of shared or corporate items. For reasonableness, the summation of our reporting units' fair values was compared to our consolidated fair value as indicated by our market capitalization. If the carrying amount of a reporting unit's net assets exceeds its estimated fair value, the second step of the goodwill impairment analysis requires us to measure the amount of the impairment loss. An impairment loss is calculated by comparing the implied fair value of the goodwill to its carrying amount. To calculate the implied fair value of goodwill, the fair value of the reporting unit's assets and liabilities, excluding goodwill, is estimated. The excess of the fair value of the reporting unit over the amount assigned to its assets and liabilities, excluding goodwill, is the implied fair value of the reporting unit's goodwill. We were not required to complete the second step of the goodwill impairment analysis for any of our reporting units, and no goodwill impairment charges were recorded during 2014. Further information regarding this analysis can be found in Note 7: Fair value measurements. | ||
When completing our annual goodwill impairment analysis, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after this qualitative assessment, we determine it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step, quantitative impairment test is unnecessary. During 2013 and 2012, we elected to perform a qualitative assessment for all of our reporting units to which goodwill is assigned. We noted no changes in events or circumstances which would have required us to complete the two-step quantitative goodwill impairment analysis for any of our reporting units. As such, no goodwill impairment charges were recorded as a result of our 2013 or 2012 annual impairment analyses. | ||
Contract acquisition costs – We record contract acquisition costs when we sign or renew certain contracts with our financial institution clients. These costs, which are essentially pre-paid product discounts, consist of cash payments or accruals related to amounts owed to financial institution clients by our Financial Services segment. Contract acquisition costs are amortized as reductions of revenue over the related contract term, generally on the straight-line basis. Currently, these amounts are being amortized over periods ranging from one year to 10 years, with a weighted-average life of six years as of December 31, 2014. Whenever events or changes occur that impact the related contract, including significant declines in the anticipated profitability, we evaluate the carrying value of the contract acquisition costs to determine if impairment has occurred. Should a financial institution cancel a contract prior to the agreement's termination date, or should the volume of orders realized through a financial institution fall below contractually-specified minimums, we generally have a contractual right to a refund of the remaining unamortized contract acquisition costs. These costs are included in other non-current assets in the consolidated balance sheets. | ||
Advertising costs – Deferred advertising costs include materials, printing, labor and postage costs related to direct response advertising programs of our Direct Checks and Small Business Services segments. These costs are amortized as SG&A expense over periods (not exceeding 18 months) that correspond to the estimated revenue streams of the individual advertisements. The actual revenue streams are analyzed at least annually to monitor the propriety of the amortization periods. Judgment is required in estimating the future revenue streams, especially with regard to check re-orders which can span an extended period of time. Significant changes in the actual revenue streams would require the amortization periods to be modified, thus impacting our results of operations during the period in which the change occurred and in subsequent periods. Within our Direct Checks segment, approximately 82% of the costs of individual advertisements is expensed within six months of the advertisement. The deferred advertising costs of our Small Business Services segment are fully amortized within six months of the advertisement. Deferred advertising costs are included in other current assets and other non-current assets in the consolidated balance sheets. | ||
Non-direct response advertising projects are expensed as incurred. Catalogs provided to financial institution clients of our Financial Services segment are accounted for as prepaid assets until they are shipped to financial institutions. The total amount of advertising expense was $91,937 in 2014, $93,872 in 2013 and $100,594 in 2012. | ||
Loans to distributors – We, at times, make loans to certain of our Safeguard® distributors to allow them to purchase the operations of other small business distributors. These loans are included in other current assets and other non-current assets in the consolidated balance sheets. Interest is accrued at market interest rates as earned. As of December 31, 2014 and December 31, 2013, no amounts were past due and allowances for credit losses related to these receivables were not significant. | ||
Restructuring charges – Over the past several years, we have recorded restructuring charges as a result of various cost management efforts, including facility closings, the relocation of business activities, and fundamental changes in the manner in which certain business functions are conducted. These charges have consisted primarily of accruals for employee termination benefits payable under our ongoing severance benefit plan. We record accruals for employee termination benefits when it is probable that a liability has been incurred and the amount of the liability is reasonably estimable. As such, judgment is involved in determining when it is appropriate to record restructuring accruals. Additionally, we are required to make estimates and assumptions in calculating the restructuring accruals as, on some occasions, employees choose to voluntarily leave the company prior to their termination date or they secure another position within the company. In these situations, the employees do not receive termination benefits. To the extent our assumptions and estimates differ from our actual costs, subsequent adjustments to restructuring accruals have been and will be required. Restructuring accruals are included in accrued liabilities and other non-current liabilities in our consolidated balance sheets. In addition to employee termination benefits, we also typically incur other costs related to restructuring activities including, but not limited to, information technology costs, employee and equipment moves, training and travel. These costs are expensed as incurred. | ||
Litigation – We are party to legal actions and claims arising in the ordinary course of business. We record accruals for legal matters when the expected outcome of these matters is either known or considered probable and can be reasonably estimated. Our accruals do not include related legal and other costs expected to be incurred in defense of legal actions. Based upon information presently available, we believe that it is unlikely that any identified matters, either individually or in the aggregate, will have a material adverse effect on our annual results of operations, financial position or liquidity upon resolution. | ||
Income taxes – Deferred income taxes result from temporary differences between the financial reporting basis of assets and liabilities and their respective tax reporting bases. Current deferred tax assets and liabilities are netted by jurisdiction in the consolidated balance sheets, as are long-term deferred tax assets and liabilities. Net deferred tax assets are recognized to the extent that realization of such benefits is more likely than not. | ||
We are subject to tax audits in numerous domestic and foreign tax jurisdictions. Tax audits are often complex and can require several years to complete. In the normal course of business, we are subject to challenges from the Internal Revenue Service and other tax authorities regarding the amount of taxes due. These challenges may alter the timing or amount of taxable income or deductions, or the allocation of income among tax jurisdictions. We recognize the benefits of tax return positions in the financial statements when they are more-likely-than-not to be sustained by the taxing authorities based solely on the technical merits of the position. If the recognition threshold is met, the tax benefit is measured and recognized as the largest amount of tax benefit that, in our judgment, is greater than 50% likely to be realized. Accrued interest and penalties related to unrecognized tax positions is included in our provision for income taxes in the consolidated statements of income. | ||
Derivative financial instruments – Information regarding our derivative financial instruments is included in Note 6. We do not use derivative financial instruments for speculative or trading purposes. Our policy is that all derivative transactions must be linked to an existing balance sheet item or firm commitment, and the notional amount cannot exceed the value of the exposure being hedged. | ||
We recognize all derivative financial instruments in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. They are included in either current or non-current assets or liabilities in the consolidated balance sheets based on their maturity. Changes in the fair value of derivative financial instruments are recognized periodically either in income or in shareholders' equity as a component of accumulated other comprehensive loss, depending on whether the derivative financial instrument qualifies for hedge accounting, and if so, whether it qualifies as a fair value hedge or a cash flow hedge and whether the hedge is effective. Generally, changes in fair values of derivatives accounted for as fair value hedges are recorded in income along with the portion of the change in the fair value of the hedged items that relate to the hedged risk. Changes in fair values of derivatives accounted for as cash flow hedges, to the extent they are effective as hedges, are recorded in accumulated other comprehensive loss, net of tax. We classify the cash flows from derivative instruments that have been designated as fair value or cash flow hedges in the same category as the cash flows from the items being hedged. Changes in fair values of derivatives not qualifying as hedges and the ineffective portion of hedges are reported in income. | ||
Revenue recognition – We recognize revenue when (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the sales price is fixed or determinable, and (4) collectibility is reasonably assured. The majority of our revenues are generated from the sale of products for which revenue is recognized upon shipment or customer receipt, based upon the transfer of title. Our services, which account for the remainder of our revenue, consist primarily of web design, hosting and other web services; fraud prevention; marketing services, including email, mobile, social media and other self-service marketing solutions; financial institution customer acquisition and loyalty programs; financial technology solutions; payroll services; and logo design. We recognize the majority of these service revenues as the services are provided. In some situations, our web hosting and applications services are billed on a quarterly, semi-annual or annual basis. When a customer pays in advance for services, we defer the revenue and recognize it as the services are performed. Up-front set-up fees related to our web hosting, applications services and outsourcing services are deferred and recognized as revenue on the straight-line basis over the term of the customer relationship. Deferred revenue is included in accrued liabilities in the consolidated balance sheets. | ||
A portion of the revenue generated by WFS, which was acquired in October 2014 (Note 5), results from the sale of bundled arrangements which may include hardware, software and professional services. We recognize revenues from these contracts using the percentage-of-completion method of accounting, which involves calculating the percentage of services provided during the reporting period compared with the total estimated services to be provided over the duration of the contract. We record costs and earnings in excess of billings on uncompleted contracts within other current assets and billings in excess of costs and earnings on uncompleted contracts within other current liabilities in the consolidated balance sheets. The amount included in other current assets related to these contracts was $8,407 as of December 31, 2014, and the amount included in other current liabilities related to these contracts was $708 as of December 31, 2014. | ||
Revenue includes amounts billed to customers for shipping and handling and pass-through costs, such as marketing materials for which our financial institution clients reimburse us. Costs incurred for shipping and handling and pass-through costs are reflected in cost of products. For sales with a right of return, we record a reserve for estimated sales returns based on significant historical experience. | ||
At times, a financial institution client may terminate its contract with us prior to the end of the contract term. In substantially all of these cases, the financial institution is contractually required to remit a contract termination payment. Such payments are recorded as revenue when the termination agreement is executed, provided that we have no further service or contractual obligations, and collection of the funds is assured. If we have a continuing service obligation following the execution of a contract termination agreement, we record the related revenue over the remaining service period. | ||
Revenue is presented in the consolidated statements of income net of rebates, discounts, amortization of contract acquisition costs, and sales tax. We enter into contractual agreements with financial institution clients for rebates on certain products we sell. We record these amounts as reductions of revenue in the consolidated statements of income and as accrued liabilities in the consolidated balance sheets when the related revenue is recorded. At times we may also sell products at discounted prices or provide free products to customers when they purchase a specified product. Discounts are recorded as reductions of revenue when the related revenue is recorded. The cost of free products is recorded as cost of products when the revenue for the related purchased product is recorded. Reported revenue for our Financial Services segment does not reflect the full retail price paid by end-consumers to their financial institutions. Instead, revenue reflects the amounts paid to us by our financial institution clients. | ||
Employee share-based compensation – Our share-based compensation consists of non-qualified stock options, restricted stock units, restricted stock and an employee stock purchase plan. Additionally, in 2014 we granted performance share awards. Employee share-based compensation expense is included in total cost of revenue and in SG&A expense in our consolidated statements of income, based on the functional areas of the employees receiving the awards, and is recognized as follows: | ||
• | The fair value of stock options is measured on the grant date using the Black-Scholes option pricing model. The related compensation expense is recognized on the straight-line basis, net of estimated forfeitures, over the options' vesting periods. | |
• | The fair value of restricted stock and a portion of our restricted stock unit awards is measured on the grant date based on the market value of our common stock. The related compensation expense, net of estimated forfeitures, is recognized over the applicable service period. | |
• | Certain of our restricted stock unit awards may be settled in cash if an employee voluntarily chooses to leave the company. These awards are included in accrued liabilities and other non-current liabilities in the consolidated balance sheets and are re-measured at fair value as of each balance sheet date. | |
• | Compensation expense resulting from the 15% discount provided under our employee stock purchase plan is recognized over the purchase period of six months. | |
• | The performance share awards specify certain performance/market-based conditions which must be achieved in order for the awards to vest. For the portion of the awards based on a performance condition, the performance target is not considered in determining the fair value of the awards and thus, fair value is measured on the grant date based on the market value of our common stock. The related compensation expense for this type of award is recognized, net of estimated forfeitures, over the related service period. The amount of compensation expense is dependent on our periodic assessment of the probability of the targets being achieved and our estimate, which may vary over time, of the number of shares that ultimately will be issued. For the portion of the awards based on a market condition, fair value is calculated on the grant date using the Monte Carlo simulation model. All compensation cost for these awards is recognized, net of estimated forfeitures, over the related service period, even if the market condition is never satisfied. | |
Earnings per share – Basic earnings per share is based on the weighted-average number of common shares outstanding during the year. Diluted earnings per share is based on the weighted-average number of common shares outstanding during the year, adjusted to give effect to potential common shares such as stock options and shares to be issued under our employee stock purchase plan. When determining the denominator for the diluted earnings per share calculation under the treasury stock method, we exclude from assumed proceeds the impact of pro forma deferred tax assets. We calculate earnings per share using the two-class method as we have unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalent payments. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. | ||
Comprehensive income – Comprehensive income includes charges and credits to shareholders' equity that are not the result of transactions with shareholders. Our total comprehensive income consists of net income, gains and losses on derivative instruments, changes in the funded status and amortization of amounts related to our postretirement benefit plans, unrealized gains and losses on available-for-sale marketable securities, and foreign currency translation adjustments. The items of comprehensive income, with the exception of net income, are included in accumulated other comprehensive loss in the consolidated balance sheets and statements of shareholders' equity. | ||
Recently adopted accounting pronouncements – On January 1, 2014, we adopted Accounting Standards Update (ASU) No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This standard provides guidance regarding when an unrecognized tax benefit should be classified as a reduction to a deferred tax asset or when it should be classified as a liability in the consolidated balance sheet. Adoption of this standard resulted in an increase of $669 in non-current deferred income tax liabilities and a corresponding decrease in other non-current liabilities. | ||
Accounting pronouncements not yet adopted – In April 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This standard changes the criteria for determining which disposals should be presented as discontinued operations and modifies the related disclosure requirements. Additionally, the new guidance requires that a business which qualifies as held for sale upon acquisition should be reported as discontinued operations. We adopted the new guidance on January 1, 2015, and it is applied prospectively. As such, we will apply this standard to any new disposals or new classifications of disposal groups as held for sale which occur on or after January 1, 2015. | ||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The new standard provides revenue recognition guidance for any entity that enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets, unless those contracts are within the scope of other accounting standards. The new standard also expands the required financial statement disclosures regarding revenue recognition. The new guidance is effective for us on January 1, 2017. We are currently assessing the impact of this new standard on our consolidated financial statements, as well as the method of transition that we will use in adopting the new standard. | ||
In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The new standard requires that a performance target that affects vesting and that could be achieved after the requisite service period should be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. The new guidance is effective for us on January 1, 2016. We currently have share-based payment awards that fall within the scope of this standard. Our current accounting treatment is in compliance with the new standard, so we expect no impact on our consolidated financial statements. |
Supplemental_balance_sheet_and
Supplemental balance sheet and cash flow information | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Supplemental balance sheet and cash flow information [Abstract] | |||||||||||||||||||||||||
Supplemental balance sheet and cash flow information | Supplemental balance sheet and cash flow information | ||||||||||||||||||||||||
Trade accounts receivable – Net trade accounts receivable was comprised of the following at December 31: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Trade accounts receivable – gross | $ | 117,991 | $ | 91,910 | |||||||||||||||||||||
Allowances for uncollectible accounts | (4,335 | ) | (3,861 | ) | |||||||||||||||||||||
Trade accounts receivable – net | $ | 113,656 | $ | 88,049 | |||||||||||||||||||||
Changes in the allowances for uncollectible accounts for the years ended December 31 were as follows: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Balance, beginning of year | $ | 3,861 | $ | 3,912 | $ | 4,007 | |||||||||||||||||||
Bad debt expense | 3,994 | 3,722 | 3,749 | ||||||||||||||||||||||
Write-offs, net of recoveries | (3,520 | ) | (3,773 | ) | (3,844 | ) | |||||||||||||||||||
Balance, end of year | $ | 4,335 | $ | 3,861 | $ | 3,912 | |||||||||||||||||||
Inventories and supplies – Inventories and supplies were comprised of the following at December 31: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Raw materials | $ | 5,899 | $ | 5,426 | |||||||||||||||||||||
Semi-finished goods | 8,990 | 8,361 | |||||||||||||||||||||||
Finished goods | 21,298 | 11,948 | |||||||||||||||||||||||
Supplies | 3,224 | 3,231 | |||||||||||||||||||||||
Inventories and supplies | $ | 39,411 | $ | 28,966 | |||||||||||||||||||||
Available-for-sale securities – Available-for-sale marketable securities included within cash and cash equivalents, funds held for customers and other current assets were comprised of the following: | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(in thousands) | Cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||
Canadian and provincial government securities | $ | 9,245 | $ | — | $ | (120 | ) | $ | 9,125 | ||||||||||||||||
Canadian guaranteed investment certificate | 8,605 | — | — | 8,605 | |||||||||||||||||||||
Available-for-sale securities (funds held for customers)(1) | 17,850 | — | (120 | ) | 17,730 | ||||||||||||||||||||
Canadian money market fund (other current assets) | 1,895 | — | — | 1,895 | |||||||||||||||||||||
Total available-for-sale securities | $ | 19,745 | $ | — | $ | (120 | ) | $ | 19,625 | ||||||||||||||||
(1) Funds held for customers, as reported on the consolidated balance sheet as of December 31, 2014, also included cash of $25,874. | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
(in thousands) | Cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||
Canadian and provincial government securities | $ | 9,901 | $ | — | $ | (343 | ) | $ | 9,558 | ||||||||||||||||
Canadian guaranteed investment certificate | 5,178 | — | — | 5,178 | |||||||||||||||||||||
Available-for-sale securities (funds held for customers)(1) | 15,079 | — | (343 | ) | 14,736 | ||||||||||||||||||||
Money market securities (cash equivalents) | 70,001 | — | — | 70,001 | |||||||||||||||||||||
Canadian money market fund (other current assets) | 2,045 | — | — | 2,045 | |||||||||||||||||||||
Total available-for-sale securities | $ | 87,125 | $ | — | $ | (343 | ) | $ | 86,782 | ||||||||||||||||
(1) Funds held for customers, as reported on the consolidated balance sheet as of December 31, 2013, also included cash of $27,689. | |||||||||||||||||||||||||
Expected maturities of available-for-sale securities as of December 31, 2014 were as follows: | |||||||||||||||||||||||||
(in thousands) | Fair value | ||||||||||||||||||||||||
Due in one year or less | $ | 10,601 | |||||||||||||||||||||||
Due in two to five years | 6,259 | ||||||||||||||||||||||||
Due in six to ten years | 2,765 | ||||||||||||||||||||||||
Total available-for-sale securities | $ | 19,625 | |||||||||||||||||||||||
Further information regarding the fair value of available-for-sale marketable securities can be found in Note 7: Fair value measurements. | |||||||||||||||||||||||||
Property, plant and equipment – Property, plant and equipment was comprised of the following at December 31: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in thousands) | Gross carrying amount | Accumulated depreciation | Net carrying amount | Gross carrying amount | Accumulated depreciation | Net carrying amount | |||||||||||||||||||
Land and improvements | $ | 28,367 | $ | (7,612 | ) | $ | 20,755 | $ | 33,951 | $ | (9,445 | ) | $ | 24,506 | |||||||||||
Buildings and improvements | 109,307 | (69,882 | ) | 39,425 | 125,655 | (76,995 | ) | 48,660 | |||||||||||||||||
Machinery and equipment | 298,479 | (271,036 | ) | 27,443 | 302,663 | (274,486 | ) | 28,177 | |||||||||||||||||
Property, plant and equipment | $ | 436,153 | $ | (348,530 | ) | $ | 87,623 | $ | 462,269 | $ | (360,926 | ) | $ | 101,343 | |||||||||||
Assets held for sale/facility sales – Assets held for sale included the operations of small business distributors which we previously acquired and which consisted primarily of customer list intangible assets. The net assets of one of the small business distributors were sold during 2014, realizing a net pre-tax gain of $430. We are actively marketing the remaining assets and expect the selling prices will exceed the carrying values. Net assets held for sale consisted of the following: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | Balance sheet caption | ||||||||||||||||||||||
Current assets | $ | 687 | $ | 727 | Other current assets | ||||||||||||||||||||
Intangibles | 25,926 | 24,603 | Assets held for sale | ||||||||||||||||||||||
Other non-current assets | 893 | 848 | Assets held for sale | ||||||||||||||||||||||
Accrued liabilities | (1,058 | ) | (733 | ) | Accrued liabilities | ||||||||||||||||||||
Non-current deferred income tax liabilities | (8,774 | ) | (7,821 | ) | Other non-current liabilities | ||||||||||||||||||||
Other non-current liabilities | — | (32 | ) | Other non-current liabilities | |||||||||||||||||||||
Net assets held for sale | $ | 17,674 | $ | 17,592 | |||||||||||||||||||||
During 2014, we sold our Colorado Springs, Colorado facility and entered into an operating lease on a portion of the facility. We received cash proceeds of $8,451 from the sale and recognized the full amount of the net pre-tax loss on the sale of $735. | |||||||||||||||||||||||||
During 2012, we sold our Thorofare, New Jersey facility which had been included in assets held for sale in our consolidated balance sheet. We received cash proceeds of $2,613 from the sale, realizing a net pre-tax loss of $128. | |||||||||||||||||||||||||
Intangibles – Intangibles were comprised of the following at December 31: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in thousands) | Gross carrying amount | Accumulated amortization | Net carrying amount | Gross carrying amount | Accumulated amortization | Net carrying amount | |||||||||||||||||||
Indefinite-lived: | |||||||||||||||||||||||||
Trade name | $ | 19,100 | $ | — | $ | 19,100 | $ | 19,100 | $ | — | $ | 19,100 | |||||||||||||
Amortizable intangibles: | |||||||||||||||||||||||||
Internal-use software | 364,229 | (303,340 | ) | 60,889 | 339,995 | (275,159 | ) | 64,836 | |||||||||||||||||
Customer lists/relationships | 106,218 | (40,097 | ) | 66,121 | 63,282 | (31,606 | ) | 31,676 | |||||||||||||||||
Trade names | 69,281 | (37,623 | ) | 31,658 | 67,961 | (33,642 | ) | 34,319 | |||||||||||||||||
Software to be sold | 28,500 | (601 | ) | 27,899 | — | — | — | ||||||||||||||||||
Other | 8,160 | (6,647 | ) | 1,513 | 9,324 | (5,679 | ) | 3,645 | |||||||||||||||||
Amortizable intangibles | 576,388 | (388,308 | ) | 188,080 | 480,562 | (346,086 | ) | 134,476 | |||||||||||||||||
Intangibles | $ | 595,488 | $ | (388,308 | ) | $ | 207,180 | $ | 499,662 | $ | (346,086 | ) | $ | 153,576 | |||||||||||
Total amortization of intangibles was $49,075 in 2014, $46,651 in 2013 and $45,730 in 2012. Of these amounts, amortization of internal-use software was $34,282 in 2014, $32,555 in 2013 and $30,982 in 2012. Based on the intangibles in service as of December 31, 2014, estimated amortization expense for each of the next five years ending December 31 is as follows: | |||||||||||||||||||||||||
(in thousands) | Estimated | ||||||||||||||||||||||||
amortization | |||||||||||||||||||||||||
expense | |||||||||||||||||||||||||
2015 | $ | 45,317 | |||||||||||||||||||||||
2016 | 32,985 | ||||||||||||||||||||||||
2017 | 20,848 | ||||||||||||||||||||||||
2018 | 15,343 | ||||||||||||||||||||||||
2019 | 12,639 | ||||||||||||||||||||||||
We acquire internal-use software in the normal course of business. In conjunction with acquisitions (Note 5), we also acquired certain other amortizable intangible assets. The following intangible assets were acquired during the years ended December 31: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | Amount | Weighted-average amortization period | Amount | Weighted-average amortization period | Amount | Weighted-average amortization period | |||||||||||||||||||
(in years) | (in years) | (in years) | |||||||||||||||||||||||
Internal-use software | $ | 33,867 | 4 | $ | 34,455 | 3 | $ | 28,097 | 4 | ||||||||||||||||
Customer lists/relationships | 45,869 | 9 | 16,610 | 8 | 10,200 | 9 | |||||||||||||||||||
Software to be sold | 28,500 | 9 | — | — | — | — | |||||||||||||||||||
Trade names | 2,000 | 3 | 200 | 2 | 900 | 5 | |||||||||||||||||||
Other | 50 | 2 | 3,310 | 4 | — | — | |||||||||||||||||||
Acquired intangibles | $ | 110,286 | 7 | $ | 54,575 | 5 | $ | 39,197 | 5 | ||||||||||||||||
The table above does not include intangible assets acquired via the acquisition of small business distributors which are classified as held for sale upon purchase. Amounts included in the table above related to the acquisition of Destination Rewards were preliminary as of December 31, 2013 and were finalized during 2014. Further information regarding acquisitions can be found in Note 5: Acquisitions and information regarding assets held for sale can be found in Note 2: Supplemental balance sheet and cash flow information. | |||||||||||||||||||||||||
Goodwill – Changes in goodwill by reportable segment and in total were as follows: | |||||||||||||||||||||||||
(in thousands) | Small | Financial | Direct | Total | |||||||||||||||||||||
Business | Services | Checks | |||||||||||||||||||||||
Services | |||||||||||||||||||||||||
Balance, December 31, 2012: | |||||||||||||||||||||||||
Goodwill, gross | $ | 633,952 | $ | 27,178 | $ | 148,506 | $ | 809,636 | |||||||||||||||||
Accumulated impairment charges | (20,000 | ) | — | — | (20,000 | ) | |||||||||||||||||||
Goodwill, net of accumulated impairment charges | 613,952 | 27,178 | 148,506 | 789,636 | |||||||||||||||||||||
Acquisition of VerticalResponse, Inc. (Note 5) | 18,735 | — | — | 18,735 | |||||||||||||||||||||
Acquisition of Acton Marketing, LLC (Note 5) | — | 1,459 | — | 1,459 | |||||||||||||||||||||
Acquisition of Destination Rewards, Inc. (Note 5) | — | 13,080 | — | 13,080 | |||||||||||||||||||||
Currency translation adjustment | (133 | ) | — | — | (133 | ) | |||||||||||||||||||
Balance, December 31, 2013: | |||||||||||||||||||||||||
Goodwill, gross | 652,554 | 41,717 | 148,506 | 842,777 | |||||||||||||||||||||
Accumulated impairment charges | (20,000 | ) | — | — | (20,000 | ) | |||||||||||||||||||
Goodwill, net of accumulated impairment charges | 632,554 | 41,717 | 148,506 | 822,777 | |||||||||||||||||||||
Adjustment for acquisition of Destination Rewards, Inc. (Note 5) | — | (1,375 | ) | — | (1,375 | ) | |||||||||||||||||||
Acquisition of NetClime, Inc. (Note 5) | 1,615 | — | — | 1,615 | |||||||||||||||||||||
Acquisition of Wausau Financial Systems, Inc. (Note 5) | — | 45,521 | — | 45,521 | |||||||||||||||||||||
Currency translation adjustment | (162 | ) | — | — | (162 | ) | |||||||||||||||||||
Balance, December 31, 2014: | |||||||||||||||||||||||||
Goodwill, gross | 654,007 | 85,863 | 148,506 | 888,376 | |||||||||||||||||||||
Accumulated impairment charges | (20,000 | ) | — | — | (20,000 | ) | |||||||||||||||||||
Goodwill, net of accumulated impairment charges | $ | 634,007 | $ | 85,863 | $ | 148,506 | $ | 868,376 | |||||||||||||||||
Other non-current assets – Other non-current assets were comprised of the following at December 31: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Contract acquisition costs | $ | 74,101 | $ | 35,421 | |||||||||||||||||||||
Postretirement benefit plan asset (Note 12) | 24,243 | 24,981 | |||||||||||||||||||||||
Loans and notes receivable from distributors | 14,583 | 16,162 | |||||||||||||||||||||||
Deferred advertising costs | 8,922 | 10,447 | |||||||||||||||||||||||
Other | 9,792 | 13,756 | |||||||||||||||||||||||
Other non-current assets | $ | 131,641 | $ | 100,767 | |||||||||||||||||||||
Changes in contract acquisition costs were as follows for the years ended December 31: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Balance, beginning of year | $ | 35,421 | $ | 43,036 | $ | 55,076 | |||||||||||||||||||
Additions(1) | 57,225 | 10,072 | 5,543 | ||||||||||||||||||||||
Amortization | (18,105 | ) | (17,197 | ) | (17,110 | ) | |||||||||||||||||||
Other | (440 | ) | (490 | ) | (473 | ) | |||||||||||||||||||
Balance, end of year | $ | 74,101 | $ | 35,421 | $ | 43,036 | |||||||||||||||||||
(1) Contract acquisition costs are accrued upon contract execution. Cash payments made for contract acquisition costs were $16,567 for 2014, $12,133 for 2013 and $16,952 for 2012. | |||||||||||||||||||||||||
Accrued liabilities – Accrued liabilities were comprised of the following at December 31: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Deferred revenue | $ | 48,514 | $ | 16,897 | |||||||||||||||||||||
Funds held for customers | 42,944 | 41,810 | |||||||||||||||||||||||
Performance-based compensation | 38,259 | 29,544 | |||||||||||||||||||||||
Customer rebates | 20,550 | 21,623 | |||||||||||||||||||||||
Contract acquisition costs due within one year | 9,815 | 3,880 | |||||||||||||||||||||||
Restructuring due within one year (Note 8) | 4,276 | 5,609 | |||||||||||||||||||||||
Other | 54,763 | 43,627 | |||||||||||||||||||||||
Accrued liabilities | $ | 219,121 | $ | 162,990 | |||||||||||||||||||||
Supplemental cash flow information – Cash payments for income taxes and interest were as follows for the years ended December 31: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Income taxes paid | $ | 100,639 | $ | 90,322 | $ | 83,875 | |||||||||||||||||||
Interest paid | 39,946 | 38,676 | 46,514 | ||||||||||||||||||||||
Earnings_per_share
Earnings per share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings per share | Earnings per share | ||||||||||||
The following table reflects the calculation of basic and diluted earnings per share. During each period, certain stock options, as noted below, were excluded from the calculation of diluted earnings per share because their effect would have been antidilutive. | |||||||||||||
(dollars and shares in thousands, except per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Earnings per share – basic: | |||||||||||||
Net income | $ | 199,794 | $ | 186,652 | $ | 170,492 | |||||||
Income allocated to participating securities | (1,075 | ) | (846 | ) | (1,161 | ) | |||||||
Income available to common shareholders | $ | 198,719 | $ | 185,806 | $ | 169,331 | |||||||
Weighted-average shares outstanding | 49,827 | 50,550 | 50,775 | ||||||||||
Earnings per share – basic | $ | 3.99 | $ | 3.68 | $ | 3.33 | |||||||
Earnings per share – diluted: | |||||||||||||
Net income | $ | 199,794 | $ | 186,652 | $ | 170,492 | |||||||
Income allocated to participating securities | (1,068 | ) | (840 | ) | (1,156 | ) | |||||||
Re-measurement of share-based awards classified as liabilities | 183 | 314 | 123 | ||||||||||
Income available to common shareholders | $ | 198,909 | $ | 186,126 | $ | 169,459 | |||||||
Weighted-average shares outstanding | 49,827 | 50,550 | 50,775 | ||||||||||
Dilutive impact of potential common shares | 435 | 460 | 301 | ||||||||||
Weighted-average shares and potential common shares outstanding | 50,262 | 51,010 | 51,076 | ||||||||||
Earnings per share – diluted | $ | 3.96 | $ | 3.65 | $ | 3.32 | |||||||
Antidilutive options excluded from calculation | 7 | 12 | 470 | ||||||||||
Other_comprehensive_income
Other comprehensive income | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||
Other comprehensive income | Other comprehensive income | ||||||||||||||||||||
Reclassification adjustments – Information regarding amounts reclassified from accumulated other comprehensive loss to net income was as follows: | |||||||||||||||||||||
Accumulated other comprehensive loss component | Amounts reclassified from accumulated other comprehensive loss | Affected line item in consolidated statements of income | |||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||
Amortization of loss on interest rate locks(1) | $ | (1,282 | ) | $ | (1,711 | ) | $ | (1,786 | ) | Interest expense | |||||||||||
Tax benefit | 501 | 671 | 676 | Income tax provision | |||||||||||||||||
Amortization of loss on interest rate locks, net of tax | (781 | ) | (1,040 | ) | (1,110 | ) | Net income | ||||||||||||||
Amortization of postretirement benefit plan items: | |||||||||||||||||||||
Prior service credit | 1,421 | 1,421 | 3,056 | (2) | |||||||||||||||||
Net actuarial loss | (3,418 | ) | (4,439 | ) | (5,879 | ) | (2) | ||||||||||||||
Total amortization | (1,997 | ) | (3,018 | ) | (2,823 | ) | (2) | ||||||||||||||
Tax benefit | 661 | 954 | 1,069 | (2) | |||||||||||||||||
Amortization of postretirement benefit plan items, net of tax | (1,336 | ) | (2,064 | ) | (1,754 | ) | (2) | ||||||||||||||
Realized gains on available-for-sale securities | — | — | 327 | Other income | |||||||||||||||||
Tax expense | — | — | (86 | ) | Income tax provision | ||||||||||||||||
Realized gains on available-for-sale securities, net of tax | — | — | 241 | Net income | |||||||||||||||||
Total reclassifications, net of tax | $ | (2,117 | ) | $ | (3,104 | ) | $ | (2,623 | ) | ||||||||||||
(1) Relates to interest rate locks executed in 2002 and 2004. Further information regarding these financial instruments can be found in Note 6: Derivative financial instruments. | |||||||||||||||||||||
(2) Amortization of postretirement benefit plan items is included in the computation of net periodic benefit (income) expense. Additional details can be found in Note 12: Postretirement benefits. | |||||||||||||||||||||
Accumulated other comprehensive loss – The components of accumulated other comprehensive loss at December 31 were as follows: | |||||||||||||||||||||
(in thousands) | Postretirement benefit plans, net of tax | Loss on derivatives, net of tax(1) | Net unrealized gain (loss) on marketable securities, net of tax | Currency translation adjustment | Accumulated other comprehensive loss | ||||||||||||||||
Balance, December 31, 2011 | $ | (62,278 | ) | $ | (2,931 | ) | $ | 178 | $ | 5,630 | $ | (59,401 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | 15,221 | — | (29 | ) | 939 | 16,131 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 1,754 | 1,110 | (241 | ) | — | 2,623 | |||||||||||||||
Net current-period other comprehensive income (loss) | 16,975 | 1,110 | (270 | ) | 939 | 18,754 | |||||||||||||||
Balance, December 31, 2012 | (45,303 | ) | (1,821 | ) | (92 | ) | 6,569 | (40,647 | ) | ||||||||||||
Other comprehensive income (loss) before reclassifications | 8,365 | — | (184 | ) | (4,062 | ) | 4,119 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 2,064 | 1,040 | — | — | 3,104 | ||||||||||||||||
Net current-period other comprehensive income (loss) | 10,429 | 1,040 | (184 | ) | (4,062 | ) | 7,223 | ||||||||||||||
Balance, December 31, 2013 | (34,874 | ) | (781 | ) | (276 | ) | 2,507 | (33,424 | ) | ||||||||||||
Other comprehensive income (loss) before reclassifications | 1,133 | — | 151 | (6,315 | ) | (5,031 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 1,336 | 781 | — | — | 2,117 | ||||||||||||||||
Net current-period other comprehensive income (loss) | 2,469 | 781 | 151 | (6,315 | ) | (2,914 | ) | ||||||||||||||
Balance, December 31, 2014 | $ | (32,405 | ) | $ | — | $ | (125 | ) | $ | (3,808 | ) | $ | (36,338 | ) | |||||||
(1) Relates to interest rate locks executed in 2002 and 2004. Further information regarding these financial instruments can be found in Note 6: Derivative financial instruments. |
Acquisitions
Acquisitions | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Business Combinations [Abstract] | |||||
Acquisitions | Acquisitions | ||||
2014 acquisitions – In January 2014, we acquired all of the outstanding capital stock of NetClime, Inc. (NetClime), a provider of website development software, in a cash transaction for $2,011, net of cash acquired. We funded the acquisition with cash on hand. The allocation of the purchase price based upon the estimated fair value of the assets acquired and liabilities assumed resulted in goodwill of $1,615. The acquisition resulted in goodwill as we expect to drive future revenue as we incorporate NetClime's software solution into our technology platform and the marketing solutions services we offer our customers. Transaction costs related to the acquisition were expensed as incurred and were not significant to the 2014 consolidated statement of income. The results of operations of this business from its acquisition date are included in our Small Business Services segment. Intangible assets acquired consisted primarily of internal-use software with a value of $1,050 and a useful life of four years, which is being amortized using the straight-line method. Further information regarding the calculation of the estimated fair value of the internal-use software can be found in Note 7: Fair value measurements. | |||||
In May 2014, we acquired selected assets of Gift Box Corporation of America (GBCA) in a cash transaction for $1,750. We funded the acquisition with cash on hand. GBCA, which we are operating under the name WholeStyle PackagingTM, is a supplier of retail packaging solutions, including gift boxes, bags, bows, ribbons and wraps. Transaction costs related to the acquisition were expensed as incurred and were not significant to the 2014 consolidated statement of income. The results of operations of this business from its acquisition date are included in our Small Business Services segment. Intangible assets acquired consisted primarily of a customer list with a value of $1,095 and a useful life of five years, which is being amortized using the straight-line method. Further information regarding the calculation of the estimated fair value of the customer list can be found in Note 7: Fair value measurements. | |||||
In October 2014, we acquired all of the outstanding capital stock of Wausau Financial Systems, Inc. (WFS) in a cash transactions for $89,824, net of cash acquired. We funded the acquisition with a draw on our existing credit facility. WFS is a provider of software-based solutions for receivables management, lockbox processing, remote deposit capture and paperless branch solutions to financial institutions, utilities, government agencies and telecommunications companies. The preliminary allocation of the purchase price based upon the estimated fair value of the assets acquired and liabilities assumed resulted in goodwill of $45,521. We expect to finalize the allocation of the purchase price by mid-2015 when our valuation of deferred income taxes and certain other assets is finalized. The acquisition resulted in goodwill as WFS will provide us new access into the commercial and treasury side of financial institutions through a strong software-as-a-service (SaaS) technology offering. Transaction costs related to the acquisition were expensed as incurred and were not significant to the 2014 consolidated statement of income. The results of operations of this business from its acquisition date are included in our Financial Services segment. Intangible assets acquired consisted primarily of customer lists with an aggregate value of $32,900 and a weighted-average useful life of 10 years, software with an aggregate value of $28,500 and a weighted-average useful life of nine years, and a trade name with a value of $2,000 and a useful life of three years. The customer lists are being amortized in proportion to the expected future cash flows, while the remainder of the intangible assets are being amortized using the straight-line method. We also acquired a liability for deferred revenue of $14,200. Further information regarding the calculation of the estimated fair value of these items can be found in Note 7: Fair value measurements. Acquired deferred income taxes related primarily to the acquired intangible assets. The purchase also included specific tax attributes which are expected to generate approximately $3,500 of incremental cash tax savings. | |||||
The following illustrates our preliminary allocation of the WFS purchase price to the assets acquired and liabilities assumed: | |||||
(in thousands) | Allocation of purchase price | ||||
Cash and cash equivalents | $ | 12,526 | |||
Other current assets | 23,746 | ||||
Intangibles | 63,400 | ||||
Goodwill | 45,521 | ||||
Other non-current assets | 1,311 | ||||
Current liabilities | (27,117 | ) | |||
Deferred income taxes | (15,363 | ) | |||
Other non-current liabilities | (1,674 | ) | |||
Total purchase price | 102,350 | ||||
Less: cash acquired | (12,526 | ) | |||
Purchase price, net of cash acquired | $ | 89,824 | |||
During 2014, we acquired the operations of several small business distributors for aggregate cash payments of $10,902, utilizing cash on hand. The assets acquired consisted primarily of customer lists of $9,474, which are being amortized using the straight-line method over a weighted-average useful life of nine years. The distributors’ results of operations are included in our Small Business Services segment from their acquisition dates. Further information regarding the calculation of the estimated fair values of the customer lists can be found in Note 7: Fair value measurements. | |||||
2013 acquisitions – In June 2013, we acquired all of the outstanding capital stock of VerticalResponse, Inc. in a cash transaction for $27,299, net of cash acquired. We funded the acquisition with cash on hand. VerticalResponse is a provider of self-service marketing solutions for small businesses, including email marketing, social media, online event marketing, postcard marketing and on-line surveys. The allocation of the purchase price based upon the estimated fair value of the assets acquired and liabilities assumed resulted in goodwill of $18,735. The acquisition resulted in goodwill as we expected to accelerate revenue growth in marketing solutions by adding VerticalResponse's established customer base and online promotional and internet marketing capabilities. Transaction costs related to the acquisition were expensed as incurred and were not significant to the 2013 consolidated statement of income. The results of operations of this business from its acquisition date are included in our Small Business Services segment. | |||||
Intangible assets acquired in the VerticalResponse acquisition consisted primarily of customer relationships with an aggregate value of $9,400 and a weighted-average useful life of nine years, as well as internal-use software with an aggregate value of $4,200 and a weighted-average useful life of four years. The customer relationships are being amortized in relation to the expected future cash flows and the internal-use software is being amortized using the straight-line method. Further information regarding the calculation of the estimated fair values of these assets can be found in Note 7: Fair value measurements. | |||||
In August 2013, we acquired substantially all of the assets of Acton Marketing, LLC (Acton), a provider of website development software, in a cash transaction for $4,095, net of cash acquired. We funded the acquisition with cash on hand. The allocation of the purchase price based upon the estimated fair value of the assets acquired and liabilities assumed resulted in tax-deductible goodwill of $1,459. The acquisition resulted in goodwill as we expected to accelerate revenue growth in marketing solutions by combining the Acton business with our existing marketing solutions, bringing the best of these collective programs to both the Deluxe and Acton customer bases. Transaction costs related to the acquisition were expensed as incurred and were not significant to the 2013 consolidated statement of income. The results of operations of this business from its acquisition date are included in our Financial Services segment. Acquired intangible assets consisted of customer relationships with an aggregate value of $3,600. These assets have a weighted-average useful life of five years and are being amortized in relation to the expected future cash flows. Further information regarding the calculation of the estimated fair values of the customer relationships can be found in Note 7: Fair value measurements. | |||||
In December 2013, we acquired substantially all of the assets of Destination Rewards, Inc., a rewards and loyalty program provider, in a cash transaction for $20,086, net of cash acquired. We funded the acquisition with cash on hand. An additional payment of $2,400 is due 18 months following the acquisition date. The allocation of the purchase price based upon the estimated fair value of the assets acquired and liabilities assumed resulted in tax-deductible goodwill of $11,705. This is a decrease of $1,375 from the amount of goodwill as of December 31, 2013 as we finalized the valuation of the acquired assets and liabilities during 2014. The acquisition resulted in goodwill as we plan to offer Destination Rewards to our clients as a key component of our marketing solutions product set. Transaction costs related to the acquisition were expensed as incurred and were not significant to the 2013 consolidated statement of income. The results of operations of this business from its acquisition date are included in our Financial Services segment. | |||||
Intangible assets acquired in the Destination Rewards acquisition consisted primarily of customer relationships of $4,400 with a useful life of ten years, internal-use software with an aggregate value of $4,100 and a weighted-average useful life of four years, and supplier relationships of $1,100 with a useful life of five years. All of these assets are being amortized using the straight-line method. Further information regarding the calculation of the estimated fair values of these assets can be found in Note 7: Fair value measurements. | |||||
During 2013, we acquired the operations of several small business distributors for aggregate cash payments of $18,229, utilizing cash on hand. The assets acquired consisted primarily of customer lists, the majority of which we are actively trying to sell. Accordingly, the assets and liabilities of the distributors held for sale are designated as such in our consolidated balance sheets. The distributors’ results of operations are included in our Small Business Services segment from their acquisition dates. Further information regarding the calculation of the estimated fair values of the customer lists can be found in Note 7: Fair value measurements and further information regarding net assets held for sale can be found in Note 2: Supplemental balance sheet and cash information. | |||||
2012 acquisitions – In May 2012, we acquired all of the outstanding capital stock of OrangeSoda, Inc. (OrangeSoda) in a cash transaction for $26,707, net of cash acquired. We funded the acquisition with cash on hand. OrangeSoda is a provider of internet marketing services specializing in search, mobile and social media campaign strategies for small businesses. The allocation of the purchase price based upon the estimated fair value of the assets acquired and liabilities assumed resulted in goodwill of $12,580 as we expected to accelerate revenue growth in marketing solutions by combining our capabilities with OrangeSoda's solutions, tools, platform and market presence. Transaction costs related to the acquisition were expensed as incurred and were not significant to the 2012 consolidated statement of income. The results of operations of this business from its acquisition date are included in our Small Business Services segment. | |||||
Intangible assets acquired in the OrangeSoda acquisition consisted primarily of customer relationships with an aggregate value of $10,200 and an weighted-average useful life of nine years and internal-use software valued at $3,300 with a useful life of five years. Further information regarding the calculation of the estimated fair values of these assets can be found in Note 7: Fair value measurements. | |||||
During 2012, we acquired the operations of several small business distributors for aggregate cash payments of $7,465, utilizing cash on hand. The assets acquired consisted primarily of customer lists, most of which we then sold to our Safeguard distributors. We entered into notes receivable upon the sale of the assets, and we recognized a net gain of $1,119 on these dispositions, which is included in SG&A expense in the 2012 consolidated statement of income. Proceeds collected from these notes receivable are included in other investing activities in our consolidated statements of cash flows. Further information regarding the calculation of the estimated fair value of the assets acquired can be found in Note 7: Fair value measurements. | |||||
As our acquisitions were immaterial to our operating results both individually and in the aggregate in the year of the acquisitions, pro forma results of operations are not provided. |
Derivative_financial_instrumen
Derivative financial instruments | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||
Derivative financial instruments | Derivative financial instruments | ||||||||||||||
Fair value hedges – We have entered into interest rate swaps to hedge against changes in the fair value of a portion of our long-term debt. We entered into these swaps, which we designated as fair value hedges, to achieve a targeted mix of fixed and variable rate debt, where we receive a fixed rate and pay a variable rate based on the London Interbank Offered Rate (LIBOR). Changes in the fair value of the interest rate swaps and the related long-term debt are included in interest expense in the consolidated statements of income. The interest rate swaps related to our long-term debt due in 2020 meet the criteria for using the short-cut method for a fair value hedge based on the structure of the hedging relationship. As such, the changes in the fair value of the derivative and the related long-term debt are equal. The short-cut method was not used for our other interest rate swaps, which terminated with the maturity of the related long-term debt in October 2014. When the change in the fair value of the interest rate swaps and the hedged debt were not equal (i.e., hedge ineffectiveness), the difference in the changes in fair value affected the reported amount of interest expense in the consolidated statements of income. Information regarding hedge ineffectiveness in each period is presented in Note 7: Fair value measurements. | |||||||||||||||
Information regarding interest rate swaps as of December 31, 2014 was as follows: | |||||||||||||||
(in thousands) | Notional amount | Fair value of interest rate swaps | Decrease in debt due to fair value adjustment | Balance sheet caption including interest rate swaps | |||||||||||
Fair value hedge related to long-term debt due in 2020 | $ | 200,000 | $ | (8,067 | ) | $ | (8,067 | ) | Other non-current liabilities | ||||||
Information regarding interest rate swaps as of December 31, 2013 was as follows: | |||||||||||||||
(in thousands) | Notional amount | Fair value of interest rate swaps | Increase (decrease) in debt due to fair value adjustment | Balance sheet caption including interest rate swaps | |||||||||||
Fair value hedge related to long-term debt due in 2014 | $ | 198,000 | $ | 2,158 | $ | 1,569 | Other current assets | ||||||||
Fair value hedge related to long-term debt due in 2020 | 200,000 | (16,239 | ) | (16,239 | ) | Other non-current liabilities | |||||||||
Total fair value hedges | $ | 398,000 | $ | (14,081 | ) | $ | (14,670 | ) | |||||||
Cash flow hedges – During 2004, we entered into forward starting interest rate swaps to hedge, or lock-in, the interest rate on a portion of our long-term debt which matured in October 2014 (Note 13). The termination of the lock agreements in 2004 yielded a deferred pre-tax loss of $17,877. This loss was reflected, net of tax, in accumulated other comprehensive loss in the consolidated balance sheet and was reclassified ratably to the statements of income as an increase to interest expense through the related debt's maturity date of October 2014. | |||||||||||||||
During 2002, we entered into forward interest rate lock agreements to effectively hedge the annual interest rate on a portion of our long-term debt which matured in December 2012. The termination of the lock agreements in 2002 yielded a deferred pre-tax loss of $4,026, which was reflected in accumulated other comprehensive loss in the consolidated balance sheet and was reclassified ratably to the statements of income as an increase to interest expense through the related debt's maturity date of December 2012. |
Fair_value_measurements
Fair value measurements | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair value measurements | Fair value measurements | ||||||||||||||||||||
Annual asset impairment analyses – We evaluate the carrying value of goodwill and our indefinite-lived trade name as of July 31 of each year and between annual evaluations if events occur or circumstances change that would indicate a possible impairment. Our policy on impairment of indefinite-lived intangibles and goodwill in Note 1 explains our methodology for assessing impairment of these assets. | |||||||||||||||||||||
In completing the 2014 annual goodwill impairment analysis, we elected to perform a quantitative assessment for all of our reporting units to which goodwill is assigned, as our previous quantitative analysis was completed during 2010. Our 2014 analysis indicated that the estimated fair values of our reporting units' net assets exceeded their carrying values by approximate amounts between $74,000 and $1,128,000, or by amounts between 47% and 482% above the carrying values of their net assets. In completing the 2014 annual impairment analysis of our indefinite-lived trade name, we elected to perform a quantitative assessment which indicated that the calculated fair value of the asset exceeded its carrying value of $19,100 by approximately $31,000 as of July 31, 2014. As such, we recorded no impairment charges as a result of our 2014 annual impairment analyses. | |||||||||||||||||||||
In completing the 2013 and 2012 annual goodwill impairment analyses, we elected to perform a qualitative assessment for all of our reporting units to which goodwill is assigned. These qualitative analyses evaluated factors including, but not limited to, economic, market and industry conditions, cost factors and the overall financial performance of the reporting units. We also considered the quantitative analysis we completed as of July 31, 2010. In completing our qualitative analysis in each year, we noted no changes in events or circumstances which would have required us to complete the two-step quantitative goodwill impairment analysis for any of our reporting units. | |||||||||||||||||||||
Non-recurring asset impairment analysis – During the third quarter of 2014, we performed an impairment analysis related to our Small Business Services search engine marketing and optimization business. Revenue and the related cash flows from this business have been lower than previously projected, and as a result of our annual planning process completed during the third quarter of 2014, we decided to reduce the revenue base of this business in order to improve its financial performance. As such, we revised our estimates of future revenues and cash flows to reflect these decisions during the third quarter of 2014. We calculated the estimated fair values of the assets as the net present value of estimated future cash flows (level 3 fair value measurement). Our analysis resulted in an impairment charge of $6,468 during 2014, which reflects writing down the net book value of the related intangible assets to zero. | |||||||||||||||||||||
During the fourth quarter of 2013, we performed an impairment analysis of a customer relationship intangible asset within our Small Business Services segment. The impairment analysis was performed because revenue from the applicable group of customers was lower than previously projected. We calculated the estimated fair value of the asset as the net present value of estimated future cash flows. This analysis resulted in an impairment charge of $5,000 during 2013. | |||||||||||||||||||||
Information regarding these nonrecurring fair value measurements was as follows: | |||||||||||||||||||||
Fair value measurements using | |||||||||||||||||||||
Fair value as of | Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | Asset impairment charge | |||||||||||||||||
(in thousands) | measurement date | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
2014:00:00 | |||||||||||||||||||||
Internal-use software | $ | — | $ | — | $ | — | $ | — | $ | 4,036 | |||||||||||
Customer relationships | — | — | — | — | 1,952 | ||||||||||||||||
Trade name | — | — | — | — | 480 | ||||||||||||||||
Total impairment charge | $ | 6,468 | |||||||||||||||||||
2013:00:00 | |||||||||||||||||||||
Customer relationships | $ | 2,120 | $ | — | $ | — | $ | 2,120 | $ | 5,000 | |||||||||||
2014 acquisitions – For all acquisitions, we are required to measure the fair value of the net identifiable tangible and intangible assets and liabilities acquired, excluding goodwill and deferred income taxes. The identifiable net assets acquired | |||||||||||||||||||||
during 2014 (Note 5) were comprised primarily of customer lists associated with the acquisitions of WFS, small business distributors and GBCA; software associated with the acquisitions of WFS and NetClime; and a trade name associated with the acquisition of WFS. The aggregate fair value of the customer lists acquired during 2014 was $43,669 and the fair values were estimated using the multi-period excess earnings method. Assumptions used in the calculations included same-customer revenue growth rates and estimated customer retention rates based on the acquirees' historical information. The aggregate fair value of the acquired software was $29,550. Acquired software associated with the WFS acquisition was estimated using a relief from royalty method, which calculates the cost savings associated with owning rather than licensing the technology. Assumed royalty rates were applied to the projected revenues for the expected remaining useful lives of each product technology component to estimate the royalty savings. The fair value of the software associated with the NetClime acquisition was estimated using a cost of reproduction method. The primary components of the software were identified and the estimated cost to reproduce the software was calculated based on data provided by NetClime. The trade name associated with the WFS acquisition was valued at $2,000. Its estimated fair value was determined using a relief from royalty method. An assumed royalty rate was applied to forecasted revenue and the resulting cash flows were discounted. Additionally, we acquired a liability for deferred revenue of $14,200 related to the WFS acquisition. The fair value of this liability was estimated as the direct and incremental costs to provide the services required plus an estimated profit margin. | |||||||||||||||||||||
2013 acquisitions – The identifiable net assets acquired during 2013 (Note 5) were comprised primarily of customer relationships, internal-use software and supplier relationships. The estimated fair values for the intangibles acquired in the Destination Rewards acquisition were preliminary as of December 31, 2013 and were finalized during the first quarter of 2014. The fair value of the customer relationships was estimated using the multi-period excess earnings method. Assumptions used in this calculation included same-customer revenue growth rates and estimated customer retention rates based on the acquirees' historical information. The aggregate calculated fair value of customer relationships related to 2013 acquisitions was $18,810, which represents an increase of $2,200 from the December 31, 2013 amount due to the finalization of the Destination Rewards calculation. The fair value of the acquired internal-use software was estimated using a cost of reproduction method. The primary components of the software were identified and the estimated cost to reproduce the software was calculated. As a portion of the acquired software was recently developed, the estimated cost to reproduce was based on the actual time and labor rates incurred by the acquiree. For the remainder of the acquired software, we utilized estimated time and labor rates derived from our historical data from previous upgrades of similar size and nature. The calculated fair value of the internal-use software acquired in the VerticalResponse and Destination Rewards acquisitions was $8,300, which represents an increase of $400 from the December 31, 2013 amount due to the finalization of the Destination Rewards calculation. The fair value of the supplier relationships was estimated by comparing the forecasted gross margin with the supplier relationships in place compared to the forecasted gross margin without the supplier relationships. The aggregate calculated fair value of supplier relationships acquired in the Destination Rewards acquisition was $1,100, which represents a decrease of $1,200 from the December 31, 2013 amount due to the finalization of the Destination Rewards calculation. | |||||||||||||||||||||
In addition, we also acquired the operations of small business distributors during 2013 for aggregate cash payments of $18,229. The assets acquired consisted primarily of the distributors' customer lists, most of which we anticipate selling to our Safeguard distributors. The fair value of the customer lists was based on the estimated future cash flows expected to be generated via the acquired customer lists. The majority of these assets are held for sale and thus, are not being amortized. Further information regarding net assets held for sale can be found in Note 2. | |||||||||||||||||||||
2012 acquisitions – The identifiable net assets acquired during 2012 (Note 5) were comprised primarily of customer relationships and internal-use software associated with the acquisition of OrangeSoda. The fair value of the customer relationships was estimated using the multi-period excess earnings method and the cost method. Assumptions used in these calculations included same-customer revenue growth rates, management's estimates of the costs to obtain and retain customers, and estimated annual customer retention rates based on the acquiree's historical information. The aggregate calculated fair value of the customer relationships was $10,200. The fair value of the internal-use software was estimated using a cost of reproduction method. The primary components of the software were identified and the estimated cost to reproduce the software was calculated based on estimated time and labor rates derived from our historical data from previous upgrades of similar size and nature. The calculated fair value of the internal-use software was $3,300. | |||||||||||||||||||||
In addition to the OrangeSoda acquisition, we also acquired the operations of several small business distributors during 2012 for aggregate cash payments of $7,465. The assets acquired consisted primarily of the distributors' customer lists, most of which we then sold to our Safeguard distributors during 2012. The fair value of the customer lists was based on the estimated future cash flows expected to be generated via the acquired customer lists. These assets were classified as held for sale and thus, were not amortized. | |||||||||||||||||||||
Recurring fair value measurements – We did not hold any cash equivalent investments as of December 31, 2014. Cash and cash equivalents as of December 31, 2013 included available-for-sale marketable securities (Note 2). These securities consisted of investments in money market funds which were traded in active markets. As such, the fair value of the securities was determined based on quoted market prices. Because of the short-term nature of the underlying investments, the cost of these securities approximated their fair value. The cost of securities sold was determined using the average cost method. No gains or losses on sales of these marketable securities were realized during the past three years. | |||||||||||||||||||||
Funds held for customers included available-for-sale marketable securities (Note 2). These securities consisted of a mutual fund investment which invests in Canadian and provincial government securities and investments in six-month Canadian guaranteed investment certificates (GIC's). The mutual fund 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. The fair value of the GIC's approximated cost due to their relatively short duration. Unrealized gains and losses, net of tax, are included in accumulated other comprehensive loss in the consolidated balance sheets. The cost of securities sold is determined using the average cost method. Realized gains and losses are included in revenue in the consolidated statements of income. Realized gains recognized during 2012 were $327. Amounts recognized during 2014 and 2013 were not significant. | |||||||||||||||||||||
Other current assets included available-for-sale marketable securities (Note 2). These securities consisted of a Canadian money market fund which is not traded in an active market. As such, the fair value of this investment is determined by obtaining quoted prices in active markets for the underlying securities held by the fund. Because of the short-term nature of the underlying investments, the cost of these securities approximates their fair value. The cost of securities sold is determined using the average cost method. No gains or losses on sales of these marketable securities were realized during the past three years. | |||||||||||||||||||||
We have elected to account for a long-term investment in domestic mutual funds under the fair value option for financial assets and financial liabilities. The fair value option provides companies an irrevocable option to measure many financial assets and liabilities at fair value with changes in fair value recognized in earnings. The investment is included in long-term investments in the consolidated balance sheets. Information regarding the accounting for this investment is provided in our long-term investments policy in Note 1. Realized gains recognized during the past three years were not significant, nor were unrealized losses recognized during 2014. We recognized net unrealized gains on the investment in mutual funds of $323 during 2013 and $161 during 2012. | |||||||||||||||||||||
The fair value of interest rate swaps (Note 6) is determined at each reporting date by means of a pricing model utilizing readily observable market interest rates. The change in fair value is determined as the change in the present value of estimated future cash flows discounted using the LIBOR rate. The interest rate swaps related to our long-term debt due in 2020 meet the criteria for using the short-cut method for a fair value hedge based on the structure of the hedging relationship. As such, the changes in the fair value of the derivative and the related long-term debt are equal. The short-cut method was not being used for our other interest rate swaps, which terminated with the maturity of the related long-term debt in October 2014. Changes in the fair value of the interest rate swaps, as well as changes in the fair value of the hedged debt, are included in interest expense in the consolidated statements of income and were as follows: | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||
Gain (loss) from derivatives | $ | 6,014 | $ | (13,750 | ) | $ | (4,871 | ) | |||||||||||||
(Loss) gain from change in fair value of hedged debt | (6,603 | ) | 13,851 | 3,645 | |||||||||||||||||
Net (increase) decrease in interest expense | $ | (589 | ) | $ | 101 | $ | (1,226 | ) | |||||||||||||
Information regarding recurring fair value measurements completed during each period was as follows: | |||||||||||||||||||||
Fair value measurements using | |||||||||||||||||||||
Fair value as of | Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||||
(in thousands) | 31-Dec-14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Available-for-sale marketable securities (funds held for customers) | $ | 17,730 | $ | — | $ | 17,730 | $ | — | |||||||||||||
Available-for-sale marketable securities (other current assets) | 1,895 | — | 1,895 | — | |||||||||||||||||
Long-term investment in mutual funds | 2,384 | 2,384 | — | — | |||||||||||||||||
Derivative liabilities | (8,067 | ) | — | (8,067 | ) | — | |||||||||||||||
Fair value measurements using | |||||||||||||||||||||
Fair value as of | Quoted prices in active markets for identical assets | Significant other | Significant unobservable inputs | ||||||||||||||||||
31-Dec-13 | observable inputs | ||||||||||||||||||||
(in thousands) | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Available-for-sale marketable securities (cash equivalents) | $ | 70,001 | $ | 70,001 | $ | — | $ | — | |||||||||||||
Available-for-sale marketable securities (funds held for customers) | 14,736 | — | 14,736 | — | |||||||||||||||||
Available-for-sale marketable securities (other current assets) | 2,045 | — | 2,045 | — | |||||||||||||||||
Long-term investment in mutual funds | 2,407 | 2,407 | — | — | |||||||||||||||||
Derivative assets | 2,158 | — | 2,158 | — | |||||||||||||||||
Derivative liabilities | (16,239 | ) | — | (16,239 | ) | — | |||||||||||||||
Our policy is to recognize transfers between fair value levels as of the end of the reporting period in which the transfer occurred. There were no transfers between fair value levels during 2014 or 2013. | |||||||||||||||||||||
Fair value measurements of other financial instruments – The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate fair value. | |||||||||||||||||||||
Cash, excluding cash equivalents; cash included within funds held for customers; and short-term borrowings – The carrying amounts reported in the consolidated balance sheets approximate fair value because of the short-term nature of these items. | |||||||||||||||||||||
Loans and notes receivable from distributors – We have receivables for loans made to our Safeguard distributors. In addition, we have acquired the operations of several small business distributors which we then sold to our Safeguard distributors. In most cases, we entered into notes receivable upon the sale of the assets to the distributors. The fair value of these loans and notes receivables is calculated as the present value of expected future cash flows, discounted using an estimated interest rate based on published bond yields for companies of similar risk. | |||||||||||||||||||||
Long-term debt – The fair value of long-term debt has been reclassified from Level 1 to Level 2 as of December 31, 2014, as the fair value measurements are based on significant observable market inputs other than quoted prices in active markets. The prior year amount has been revised to reflect this change in fair value leveling. This revision had no impact on our consolidated balance sheets as of December 31, 2014 and December 31, 2013. The fair value of long-term debt included in the table below does not reflect the impact of hedging activity. The carrying amount of long-term debt includes the change in fair value of hedged long-term debt. | |||||||||||||||||||||
The estimated fair values of these financial instruments were as follows: | |||||||||||||||||||||
Fair value measurements using | |||||||||||||||||||||
December 31, 2014 | Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||||
(in thousands) | Carrying value | Fair value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Cash (excluding cash equivalents) | $ | 61,541 | $ | 61,541 | $ | 61,541 | $ | — | $ | — | |||||||||||
Cash (funds held for customers) | 25,874 | 25,874 | 25,874 | — | — | ||||||||||||||||
Loans and notes receivable from distributors | 16,915 | 15,765 | — | — | 15,765 | ||||||||||||||||
Short-term borrowings | 160,000 | 160,000 | 160,000 | — | — | ||||||||||||||||
Long-term debt(1) | 391,933 | 419,000 | — | 419,000 | — | ||||||||||||||||
(1) Amounts exclude capital lease obligations. | |||||||||||||||||||||
Fair value measurements using | |||||||||||||||||||||
December 31, 2013 | Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||||
(in thousands) | Carrying value | Fair value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Cash (excluding cash equivalents) | $ | 51,088 | $ | 51,088 | $ | 51,088 | $ | — | $ | — | |||||||||||
Cash (funds held for customers) | 27,689 | 27,689 | 27,689 | — | — | ||||||||||||||||
Loans and notes receivable from distributors | 18,047 | 17,051 | — | — | 17,051 | ||||||||||||||||
Long-term debt, including portion due within one year(1) | 638,787 | 684,133 | — | 684,133 | — | ||||||||||||||||
(1) Amounts exclude capital lease obligations. | |||||||||||||||||||||
Restructuring_charges
Restructuring charges | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||
Restructuring charges | Restructuring charges | ||||||||||||||||||||||||||||
Net restructuring charges for the years ended December 31 consisted of the following components: | |||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Severance accruals | $ | 8,411 | $ | 7,495 | $ | 7,619 | |||||||||||||||||||||||
Severance reversals | (1,513 | ) | (805 | ) | (1,862 | ) | |||||||||||||||||||||||
Operating lease obligations | — | 216 | 396 | ||||||||||||||||||||||||||
Operating lease obligations reversals | — | (157 | ) | — | |||||||||||||||||||||||||
Net restructuring accruals | 6,898 | 6,749 | 6,153 | ||||||||||||||||||||||||||
Other costs | 2,757 | 4,157 | 4,581 | ||||||||||||||||||||||||||
Net restructuring charges | $ | 9,655 | $ | 10,906 | $ | 10,734 | |||||||||||||||||||||||
The net restructuring charges for the years ended December 31 are reflected in the consolidated statements of income as follows: | |||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Total cost of revenue | $ | 879 | $ | 1,471 | $ | 2,808 | |||||||||||||||||||||||
Operating expenses | 8,776 | 9,435 | 7,926 | ||||||||||||||||||||||||||
Net restructuring charges | $ | 9,655 | $ | 10,906 | $ | 10,734 | |||||||||||||||||||||||
2014 restructuring charges – During 2014, the net restructuring accruals included severance charges related to employee reductions across functional areas as we continue to reduce costs, primarily within our sales and marketing, information technology and fulfillment functions. The restructuring accruals included severance benefits for approximately 260 employees. These charges were reduced by the reversal of restructuring accruals, as fewer employees received severance benefits than originally estimated. The majority of the employee reductions are expected to be completed in the first quarter of 2015, and we expect most of the related severance payments to be paid by the third quarter of 2015, utilizing cash from operations. The remaining payments due under operating lease obligations will be paid through February 2015. Other restructuring costs, which were expensed as incurred, included items such as information technology costs, employee and equipment moves, training and travel related to our restructuring activities. | |||||||||||||||||||||||||||||
2013 restructuring charges – During 2013, the net restructuring accruals included severance charges related to employee reductions across functional areas as we continued to reduce costs, including the closing of one printing facility during the fourth quarter of 2013. The restructuring accruals included severance benefits for approximately 230 employees. These charges were reduced by the reversal of restructuring accruals recorded primarily in previous years, as fewer employees received severance benefits than originally estimated. Other restructuring costs, which were expensed as incurred, included items such as information technology costs, employee and equipment moves, training and travel related to our restructuring activities. | |||||||||||||||||||||||||||||
2012 restructuring charges – During 2012, the net restructuring accruals included severance charges related to employee reductions across functional areas as we continued to reduce costs, including the closing of two customer call centers during the third quarter of 2012 and two printing facilities during the fourth quarter of 2012. The restructuring accruals included severance benefits for approximately 395 employees. These charges were reduced by the reversal of restructuring accruals recorded primarily in previous years, as fewer employees received severance benefits than originally estimated. Other restructuring costs, which were expensed as incurred, included items such as information technology costs, employee and equipment moves, training and travel related to our restructuring activities. | |||||||||||||||||||||||||||||
Restructuring accruals of $4,276 as of December 31, 2014 are reflected in the consolidated balance sheet as accrued liabilities. Restructuring accruals of $5,638 as of December 31, 2013 are reflected in the consolidated balance sheet as accrued liabilities of $5,609 and other non-current liabilities of $29. As of December 31, 2014, approximately 60 employees had not yet started to receive severance benefits. | |||||||||||||||||||||||||||||
Accruals for our restructuring initiatives, summarized by year, were as follows: | |||||||||||||||||||||||||||||
(in thousands) | 2009/2010 | 2011 | 2012 | 2013 | 2014 | Total | |||||||||||||||||||||||
initiatives | initiatives | initiatives | initiatives | initiatives | |||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 965 | $ | 5,067 | $ | — | $ | — | $ | — | $ | 6,032 | |||||||||||||||||
Restructuring charges | 26 | 281 | 7,708 | — | — | 8,015 | |||||||||||||||||||||||
Restructuring reversals | (228 | ) | (1,105 | ) | (529 | ) | — | — | (1,862 | ) | |||||||||||||||||||
Payments | (678 | ) | (4,222 | ) | (2,635 | ) | — | — | (7,535 | ) | |||||||||||||||||||
Balance, December 31, 2012 | 85 | 21 | 4,544 | — | — | 4,650 | |||||||||||||||||||||||
Restructuring charges | — | 49 | 283 | 7,379 | — | 7,711 | |||||||||||||||||||||||
Restructuring reversals | — | (3 | ) | (822 | ) | (137 | ) | — | (962 | ) | |||||||||||||||||||
Payments | (85 | ) | (67 | ) | (3,596 | ) | (2,013 | ) | — | (5,761 | ) | ||||||||||||||||||
Balance, December 31, 2013 | — | — | 409 | 5,229 | — | 5,638 | |||||||||||||||||||||||
Restructuring charges | — | — | 21 | 250 | 8,140 | 8,411 | |||||||||||||||||||||||
Restructuring reversals | — | — | (12 | ) | (859 | ) | (642 | ) | (1,513 | ) | |||||||||||||||||||
Payments | — | — | (386 | ) | (4,492 | ) | (3,382 | ) | (8,260 | ) | |||||||||||||||||||
Balance, December 31, 2014 | $ | — | $ | — | $ | 32 | $ | 128 | $ | 4,116 | $ | 4,276 | |||||||||||||||||
Cumulative amounts: | |||||||||||||||||||||||||||||
Restructuring charges | $ | 20,765 | $ | 9,124 | $ | 8,012 | $ | 7,629 | $ | 8,140 | $ | 53,670 | |||||||||||||||||
Restructuring reversals | (3,220 | ) | (1,719 | ) | (1,363 | ) | (996 | ) | (642 | ) | (7,940 | ) | |||||||||||||||||
Payments | (17,545 | ) | (7,405 | ) | (6,617 | ) | (6,505 | ) | (3,382 | ) | (41,454 | ) | |||||||||||||||||
Balance, December 31, 2014 | $ | — | $ | — | $ | 32 | $ | 128 | $ | 4,116 | $ | 4,276 | |||||||||||||||||
The components of our restructuring accruals, by segment, were as follows: | |||||||||||||||||||||||||||||
Employee severance benefits | Operating lease obligations | ||||||||||||||||||||||||||||
(in thousands) | Small Business Services | Financial Services | Direct Checks | Small Business Services | Direct Checks | Total | |||||||||||||||||||||||
Corporate(1) | |||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 887 | $ | 1,397 | $ | 744 | $ | 2,647 | $ | 69 | $ | 288 | $ | 6,032 | |||||||||||||||
Restructuring charges | 2,485 | 1,331 | 166 | 3,637 | 278 | 118 | 8,015 | ||||||||||||||||||||||
Restructuring reversals | (422 | ) | (227 | ) | (136 | ) | (1,077 | ) | — | — | (1,862 | ) | |||||||||||||||||
Inter-segment transfer | 184 | (184 | ) | (40 | ) | 40 | — | — | — | ||||||||||||||||||||
Payments | (2,491 | ) | (1,227 | ) | (690 | ) | (2,775 | ) | (96 | ) | (256 | ) | (7,535 | ) | |||||||||||||||
Balance, December 31, 2012 | 643 | 1,090 | 44 | 2,472 | 251 | 150 | 4,650 | ||||||||||||||||||||||
Restructuring charges | 2,459 | 2,619 | 407 | 2,010 | 164 | 52 | 7,711 | ||||||||||||||||||||||
Restructuring reversals | (129 | ) | (249 | ) | (4 | ) | (423 | ) | (157 | ) | — | (962 | ) | ||||||||||||||||
Payments | (1,349 | ) | (1,469 | ) | (82 | ) | (2,551 | ) | (108 | ) | (202 | ) | (5,761 | ) | |||||||||||||||
Balance, December 31, 2013 | 1,624 | 1,991 | 365 | 1,508 | 150 | — | 5,638 | ||||||||||||||||||||||
Restructuring charges | 3,566 | 2,897 | 36 | 1,912 | — | — | 8,411 | ||||||||||||||||||||||
Restructuring reversals | (858 | ) | (306 | ) | (37 | ) | (312 | ) | — | — | (1,513 | ) | |||||||||||||||||
Payments | (2,920 | ) | (2,734 | ) | (364 | ) | (2,124 | ) | (118 | ) | — | (8,260 | ) | ||||||||||||||||
Balance, December 31, 2014 | $ | 1,412 | $ | 1,848 | $ | — | $ | 984 | $ | 32 | $ | — | $ | 4,276 | |||||||||||||||
Cumulative amounts(2): | |||||||||||||||||||||||||||||
Restructuring charges | $ | 17,507 | $ | 12,681 | $ | 3,892 | $ | 18,105 | $ | 806 | $ | 679 | $ | 53,670 | |||||||||||||||
Restructuring reversals | (2,958 | ) | (1,497 | ) | (369 | ) | (2,959 | ) | (157 | ) | — | (7,940 | ) | ||||||||||||||||
Inter-segment transfer | 309 | 50 | (38 | ) | (321 | ) | — | — | — | ||||||||||||||||||||
Payments | (13,446 | ) | (9,386 | ) | (3,485 | ) | (13,841 | ) | (617 | ) | (679 | ) | (41,454 | ) | |||||||||||||||
Balance, December 31, 2014 | $ | 1,412 | $ | 1,848 | $ | — | $ | 984 | $ | 32 | $ | — | $ | 4,276 | |||||||||||||||
(1) As discussed in Note 16: Business segment information, corporate costs are allocated to our business segments. As such, the net corporate restructuring charges are reflected in the business segment operating income presented in Note 16 in accordance with our allocation methodology. | |||||||||||||||||||||||||||||
(2) Includes accruals related to our cost reduction initiatives for 2009 through 2014. |
Income_tax_provision
Income tax provision | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Income tax provision | Income tax provision | ||||||||||||||||
Income before income taxes was comprised of the following for the years ended December 31: | |||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
United States | $ | 279,326 | $ | 263,427 | $ | 237,450 | |||||||||||
Foreign | 17,855 | 17,632 | 13,303 | ||||||||||||||
Income before income taxes | $ | 297,181 | $ | 281,059 | $ | 250,753 | |||||||||||
The components of the income tax provision were as follows for the years ended December 31: | |||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Current tax provision: | |||||||||||||||||
Federal | $ | 91,630 | $ | 80,262 | $ | 66,178 | |||||||||||
State | 8,674 | 11,599 | 6,276 | ||||||||||||||
Foreign | 4,496 | 4,789 | 1,537 | ||||||||||||||
Total current tax provision | 104,800 | 96,650 | 73,991 | ||||||||||||||
Deferred tax provision: | |||||||||||||||||
Federal | (6,165 | ) | (1,403 | ) | 6,799 | ||||||||||||
State | (1,491 | ) | (618 | ) | 735 | ||||||||||||
Foreign | 243 | (222 | ) | (1,264 | ) | ||||||||||||
Total deferred tax provision | (7,413 | ) | (2,243 | ) | 6,270 | ||||||||||||
Income tax provision | $ | 97,387 | $ | 94,407 | $ | 80,261 | |||||||||||
The effective tax rate on pre-tax income reconciles to the U.S. federal statutory tax rate of 35% for the years ended December 31 as follows: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Income tax at federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||||||
State income tax expense, net of federal income tax benefit | 2.3 | % | 2.8 | % | 2.5 | % | |||||||||||
Qualified production activities deduction | (2.8 | %) | (2.8 | %) | (2.6 | %) | |||||||||||
Receivables for prior year tax returns(1) | — | (0.1 | %) | (0.7 | %) | ||||||||||||
Impact of health care legislation on deferred income taxes(2) | — | — | (0.4 | %) | |||||||||||||
Other | (1.7 | %) | (1.3 | %) | (1.8 | %) | |||||||||||
Income tax provision | 32.8 | % | 33.6 | % | 32 | % | |||||||||||
(1) The 2012 reduction reflects amendments to prior year tax returns claiming refunds primarily associated with state tax returns. | |||||||||||||||||
(2) Our 2012 income tax provision was reduced $949 by actions taken to restore a portion of the deferred tax asset attributable to the receipt of Medicare Part D subsidy payments. | |||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties and the federal benefit of deductible state income tax, is as follows: | |||||||||||||||||
(in thousands) | Unrecognized tax benefits | ||||||||||||||||
Balance, December 31, 2011 | $ | 6,236 | |||||||||||||||
Additions for tax positions of current year | 364 | ||||||||||||||||
Additions for tax positions of prior years | 2,793 | ||||||||||||||||
Reductions for tax positions of prior years | (2,976 | ) | |||||||||||||||
Settlements | (416 | ) | |||||||||||||||
Lapse of statutes of limitations | (382 | ) | |||||||||||||||
Balance, December 31, 2012 | 5,619 | ||||||||||||||||
Additions for tax positions of current year | 617 | ||||||||||||||||
Additions for tax positions of prior years | 834 | ||||||||||||||||
Fair value of acquired tax positions | 316 | ||||||||||||||||
Reductions for tax positions of prior years | (1,178 | ) | |||||||||||||||
Lapse of statutes of limitations | (203 | ) | |||||||||||||||
Balance, December 31, 2013 | 6,005 | ||||||||||||||||
Additions for tax positions of current year | 487 | ||||||||||||||||
Additions for tax positions of prior years | 500 | ||||||||||||||||
Fair value of acquired tax positions | 65 | ||||||||||||||||
Reductions for tax positions of prior years | (902 | ) | |||||||||||||||
Lapse of statutes of limitations | (214 | ) | |||||||||||||||
Adoption of ASU No. 2013-11 (Note 1) | (669 | ) | |||||||||||||||
Balance, December 31, 2014 | $ | 5,272 | |||||||||||||||
If the unrecognized tax benefits as of December 31, 2014 were recognized in our consolidated financial statements, $5,272 would positively affect income tax expense and our related effective tax rate. Accruals for interest and penalties, excluding the tax benefits of deductible interest, were $982 as of December 31, 2014 and $975 as of December 31, 2013. Our income tax provision included a credit for interest and penalties of $198 in 2013 and $152 in 2012 and expense for interest and penalties of $7 in 2014. Within the next 12 months, it is reasonably possible that our unrecognized tax benefits will change in the range of a decrease of $4,200 to an increase of $1,600 as we attempt to resolve certain federal and state tax matters or as federal and state statutes of limitations expire. Due to the nature of the underlying liabilities and the extended time frame often needed to resolve income tax uncertainties, we cannot provide reliable estimates of the amount or timing of cash payments that may be required to settle these liabilities. | |||||||||||||||||
The statute of limitations for federal tax assessments for 2010 and prior years has closed. Our federal income tax returns through 2009 have been audited by the Internal Revenue Service (IRS), and our returns for 2011 through 2014 remain subject to IRS examination, including our 2012 return which is currently under audit. In general, income tax returns for the years 2010 through 2014 remain subject to examination by foreign, state and city tax jurisdictions. In the event that we have determined not to file income tax returns with a particular state or city, all years remain subject to examination by the tax jurisdiction. | |||||||||||||||||
The ultimate outcome of tax matters may differ from our estimates and assumptions. Unfavorable settlement of any particular issue would require the use of cash and could result in increased income tax expense. Favorable resolution would result in reduced income tax expense. | |||||||||||||||||
Tax-effected temporary differences which gave rise to deferred tax assets and liabilities as of December 31 were as follows: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | Deferred tax assets | Deferred tax liabilities | Deferred tax assets | Deferred tax liabilities | |||||||||||||
Goodwill | $ | — | $ | 56,875 | $ | — | $ | 51,962 | |||||||||
Intangible assets | — | 40,010 | — | 28,370 | |||||||||||||
Prepaid assets | — | 4,640 | — | 2,859 | |||||||||||||
Deferred advertising costs | — | 4,176 | — | 4,814 | |||||||||||||
Early extinguishment of debt | — | 3,129 | — | 3,921 | |||||||||||||
Employee benefit plans | 9,485 | — | 3,319 | — | |||||||||||||
Reserves and accruals | 8,119 | — | 7,206 | — | |||||||||||||
Net operating loss and capital loss carryforwards | 7,797 | — | 9,129 | — | |||||||||||||
Inventories | 2,992 | — | 2,768 | — | |||||||||||||
Federal benefit of state uncertain tax positions | 1,882 | — | 2,259 | — | |||||||||||||
All other | 1,844 | 4,612 | 2,449 | 6,018 | |||||||||||||
Total deferred taxes | 32,119 | 113,442 | 27,130 | 97,944 | |||||||||||||
Valuation allowances | (2,945 | ) | — | (3,203 | ) | — | |||||||||||
Net deferred taxes | $ | 29,174 | $ | 113,442 | $ | 23,927 | $ | 97,944 | |||||||||
The valuation allowances as of December 31, 2014 and December 31, 2013 related primarily to capital loss carryforwards in Canada and net operating loss carryforwards in various state jurisdictions and in Ireland which we do not expect to fully realize. The provision for income taxes included benefits of $37 for 2014 and charges of $732 for 2013 related to changes in the valuation allowances. The remainder of the change in the valuation allowances was attributable to foreign currency translation. | |||||||||||||||||
As of December 31, 2014, undistributed earnings of our Canadian subsidiary companies totaled approximately $94,000. We intend to indefinitely reinvest these undistributed earnings outside of the U.S. and, therefore, no U.S. deferred income taxes have been recognized on these earnings. We would only repatriate these earnings if it were tax efficient to do so. If all or a portion of these earnings were to be distributed by dividend or loan, or upon sale of Canadian subsidiary company stock to a third party, our related U.S. income tax liability may be reduced by Canadian income taxes paid on those earnings. Our ability to reduce the related U.S. income tax liability using foreign tax credits is hampered by a tax attribute acquired with New England Business Service, Inc. in 2004. Determination of the amount of the unrecognized U.S. deferred income tax liability related to book-tax basis differences, primarily these undistributed foreign earnings, is not practical as the assumed timing of any distribution impacts the amount of the liability. As of December 31, 2014, the amount of cash, cash equivalents and marketable securities held by our Canadian subsidiaries was $52,644. | |||||||||||||||||
As of December 31, 2014, we had the following net operating loss and capital loss carryforwards: | |||||||||||||||||
• | State net operating loss carryforwards of $55,269 which expire at various dates up to 2034; | ||||||||||||||||
• | Federal net operating loss carryforwards of $6,560 which expire at various dates between 2025 and 2032; | ||||||||||||||||
• | Capital loss carryforwards of $5,536 in Canada which do not expire; and | ||||||||||||||||
• | Net operating loss carryforwards of $4,560 in Ireland which do not expire. |
Sharebased_compensation_plans
Share-based compensation plans | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||
Share-based compensation plans | Share-based compensation plans | |||||||||||||
Our employee share-based compensation plans consist of our employee stock purchase plan and our long-term incentive plan. Effective May 2, 2012, our shareholders approved the Deluxe Corporation 2012 Long-Term Incentive Plan, simultaneously terminating our previous plan. Under this plan, 5,000 shares of common stock plus any shares released as a result of the forfeiture or termination of awards issued under our prior plans are reserved for issuance, with 3,640 shares remaining available for issuance as of December 31, 2014. Full value awards such as restricted stock, restricted stock units and share-based performance awards reduce the number of shares available for issuance by a factor of 2.23, or if such an award were forfeited or terminated without delivery of the shares, the number of shares that again become eligible for issuance would be multiplied by a factor of 2.23. During the past three years, we had non-qualified stock options, restricted stock units and restricted share awards outstanding under our current and previous plans. Additionally, beginning in 2014, we granted performance share awards. See the employee share-based compensation policy in Note 1 for our policies regarding the recognition of compensation expense for employee share-based awards. | ||||||||||||||
The following amounts were recognized in our consolidated statements of income for share-based compensation awards for the years ended December 31 : | ||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||
Stock options | $ | 4,305 | $ | 4,705 | $ | 4,681 | ||||||||
Restricted shares and restricted stock units | 4,111 | 2,556 | 2,323 | |||||||||||
Performance share awards | 966 | — | — | |||||||||||
Employee stock purchase plan | 394 | 301 | 288 | |||||||||||
Total share-based compensation expense | $ | 9,776 | $ | 7,562 | $ | 7,292 | ||||||||
Income tax benefit | $ | (3,204 | ) | $ | (2,595 | ) | $ | (2,439 | ) | |||||
As of December 31, 2014, the total compensation expense for unvested awards not yet recognized in our consolidated statements of income was $11,550, net of the effect of estimated forfeitures. This amount is expected to be recognized over a weighted-average period of 1.6 years. | ||||||||||||||
Non-qualified stock options – All options allow for the purchase of shares of common stock at prices equal to the stock's market value at the date of grant. Options become exercisable beginning one year after the grant date, with one-third vesting each year over three years. Options may be exercised up to seven years following the date of grant. Beginning one year after the grant date, in the case of qualified retirement, death or disability, options vest immediately and the period over which the options can be exercised is shortened. Beginning one year after the grant date, in the case of involuntary termination without cause, a pro-rata portion of the options vest immediately and the period over which the options can be exercised is shortened. For options granted prior to 2013, in the case of involuntary termination without cause, all options vest immediately and the period over which the options can be exercised is shortened. Employees forfeit unvested options when they voluntarily terminate their employment with the company, and they have up to three months to exercise vested options before they are canceled. In the case of involuntary termination with cause, the entire unexercised portion of the award is canceled. All options may vest immediately upon a change of control, as defined in the award agreement. The following weighted-average assumptions were used in the Black-Scholes option pricing model in determining the fair value of stock options granted: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Risk-free interest rate | 1.2 | % | 0.7 | % | 0.7 | % | ||||||||
Dividend yield | 2 | % | 2.6 | % | 4 | % | ||||||||
Expected volatility | 36.1 | % | 50.5 | % | 59.6 | % | ||||||||
Weighted-average option life (in years) | 4.3 | 4.3 | 4.3 | |||||||||||
The risk-free interest rate for periods within the expected option life is based on the U.S. Treasury yield curve in effect at the grant date. Expected volatility is based on the historical volatility of our stock. | ||||||||||||||
Each option is convertible into one share of common stock upon exercise. Information regarding options issued under the current and all previous plans was as follows: | ||||||||||||||
Number of options | Weighted-average exercise price per option | Aggregate intrinsic value | Weighted-average remaining contractual term | |||||||||||
(in thousands) | (in years) | |||||||||||||
Outstanding, December 31, 2011 | 2,766 | $ | 23.26 | |||||||||||
Granted | 671 | 25.16 | ||||||||||||
Exercised | (989 | ) | 18.7 | |||||||||||
Forfeited or expired | (226 | ) | 32.13 | |||||||||||
Outstanding, December 31, 2012 | 2,222 | 24.96 | ||||||||||||
Granted | 465 | 38.74 | ||||||||||||
Exercised | (912 | ) | 27.19 | |||||||||||
Forfeited or expired | (135 | ) | 30.03 | |||||||||||
Outstanding, December 31, 2013 | 1,640 | 27.22 | ||||||||||||
Granted | 290 | 50.48 | ||||||||||||
Exercised | (552 | ) | 23.81 | |||||||||||
Forfeited or expired | (66 | ) | 37.53 | |||||||||||
Outstanding, December 31, 2014 | 1,312 | 33.28 | $ | 38,020 | 4.4 | |||||||||
Exercisable at December 31, 2012 | 1,134 | $ | 25.68 | |||||||||||
Exercisable at December 31, 2013 | 759 | 22.09 | ||||||||||||
Exercisable at December 31, 2014 | 645 | 25.76 | $ | 23,540 | 3.5 | |||||||||
The weighted-average grant-date fair value of options granted was $12.97 per option for 2014, $13.02 per option for 2013 and $9.03 per option for 2012. The intrinsic value of a stock award is the amount by which the fair value of the underlying stock exceeds the exercise price of the award. The total intrinsic value of options exercised was $17,074 for 2014, $13,614 for 2013 and $9,719 for 2012. | ||||||||||||||
Restricted stock units – Certain management employees have the option to receive a portion of their bonus payment in the form of restricted stock units. When employees elect this payment method, we provide an additional matching amount of restricted stock units equal to 50% of the restricted stock units earned under the bonus plan. These awards vest two years from the date of grant. In the case of approved retirement, death, disability or change of control, the units vest immediately. In the case of involuntary termination without cause or voluntary termination, employees receive a cash payment for the units earned under the bonus plan, but forfeit the company-provided matching amount. | ||||||||||||||
In addition to awards granted to employees, non-employee members of our board of directors can elect to receive all or a portion of their fees in the form of restricted stock units. Directors are issued shares in exchange for the units upon the earlier of the tenth anniversary of February 1st of the year following the year in which the non-employee director ceases to serve on the board or such other objectively determinable date pre-elected by the director. | ||||||||||||||
Each restricted stock unit is convertible into one share of common stock upon completion of the vesting period. Information regarding our restricted stock units was as follows: | ||||||||||||||
Number of units | Weighted-average grant date fair value per unit | Weighted-average remaining contractual term | ||||||||||||
(in thousands) | (in years) | |||||||||||||
Outstanding at December 31, 2011 | 101 | $ | 24.26 | |||||||||||
Granted | 43 | 24.26 | ||||||||||||
Vested | (16 | ) | 20.63 | |||||||||||
Forfeited | (5 | ) | 23.42 | |||||||||||
Outstanding at December 31, 2012 | 123 | 24.56 | ||||||||||||
Granted | 45 | 36.74 | ||||||||||||
Vested | (11 | ) | 24.33 | |||||||||||
Forfeited | (7 | ) | 26.78 | |||||||||||
Outstanding at December 31, 2013 | 150 | 27.11 | ||||||||||||
Granted | 30 | 53.64 | ||||||||||||
Vested | (13 | ) | 23.42 | |||||||||||
Forfeited | (1 | ) | 34.08 | |||||||||||
Outstanding at December 31, 2014 | 166 | 30.51 | 3.6 | |||||||||||
Of the awards outstanding as of December 31, 2014, 29 restricted stock units with a value of $1,824 were included in accrued liabilities and other non-current liabilities in our consolidated balance sheet. As of December 31, 2014, these units had a fair value of $62.25 per unit and a weighted-average remaining contractual term of six months. | ||||||||||||||
The total fair value of restricted stock units that vested was $654 for 2014, $390 for 2013 and $397 for 2012. We made cash payments of $25 during 2014, $64 during 2013 and $135 during 2012 to settle share-based liabilities. | ||||||||||||||
Restricted shares – Our restricted share awards have a set vesting period at which time the restrictions on the shares lapse. The vesting period on these awards currently ranges from one year to three years. The restrictions lapse immediately in the case of qualified retirement, death or disability. In the case of involuntary termination without cause or a change of control, restrictions on a pro-rata portion of the shares lapse based on how much of the vesting period has passed. In the case of voluntary termination of employment or termination with cause, the unvested restricted shares are forfeited. | ||||||||||||||
Information regarding unvested restricted shares was as follows: | ||||||||||||||
Number of shares | Weighted-average grant date fair value per share | Weighted-average remaining contractual term | ||||||||||||
(in thousands) | (in years) | |||||||||||||
Unvested at December 31, 2011 | 40 | $ | 23.71 | |||||||||||
Granted | 37 | 23.63 | ||||||||||||
Vested | (34 | ) | 23.44 | |||||||||||
Forfeited | (3 | ) | 25.37 | |||||||||||
Unvested at December 31, 2012 | 40 | 23.73 | ||||||||||||
Granted | 17 | 37.5 | ||||||||||||
Vested | (33 | ) | 23.68 | |||||||||||
Forfeited | (3 | ) | 23.45 | |||||||||||
Unvested at December 31, 2013 | 21 | 35.24 | ||||||||||||
Granted | 121 | 51.08 | ||||||||||||
Vested | (11 | ) | 37.06 | |||||||||||
Forfeited | (11 | ) | 48.14 | |||||||||||
Unvested at December 31, 2014 | 120 | 49.96 | 1.9 | |||||||||||
The total fair value of restricted shares that vested was $624 for 2014, $1,233 for 2013 and $826 for 2012. | ||||||||||||||
Performance share awards – We granted performance share awards during 2014. These awards have a three-year vesting period and shares will be issued at the end of the vesting period if performance targets relating to revenue and total shareholder return are achieved. If employment is terminated for any reason prior to the one-year anniversary of the commencement of the performance period, the award is forfeited. On or after the one-year anniversary of the commencement of the performance period, a pro-rata portion of the shares awarded at the end of the performance period would be issued in the case of qualified retirement, death, disability, involuntary termination without cause or resignation for good reason, as defined in the agreement. The following weighted-average assumptions were used in the Monte Carlo simulation model in determining the fair value of market-based performance shares granted: | ||||||||||||||
2014 | ||||||||||||||
Risk-free interest rate | 0.7 | % | ||||||||||||
Dividend yield | 2.4 | % | ||||||||||||
Expected volatility | 30.5 | % | ||||||||||||
The risk-free interest rate for periods within the expected award life is based on the U.S. Treasury yield curve in effect at the grant date. Expected volatility is based on the historical volatility of our stock. | ||||||||||||||
The performance share information presented in the table below represents the target amount of awards granted. The actual number of shares awarded upon vesting may be higher or lower depending upon our execution relative to the performance targets as of the end of the performance period. | ||||||||||||||
Performance shares | Weighted-average grant date fair value per share | Weighted-average remaining contractual term | ||||||||||||
(in thousands) | (in years) | |||||||||||||
Unvested at December 31, 2013 | — | $ | — | |||||||||||
Granted | 74 | 50.14 | ||||||||||||
Forfeited | (5 | ) | 50.14 | |||||||||||
Unvested at December 31, 2014 | 69 | 50.14 | 2.2 | |||||||||||
Employee stock purchase plan – During 2014, 44 shares were issued under this plan at prices of $41.27 and $46.76. During 2013, 51 shares were issued under this plan at prices of $31.27 and $34.86. During 2012, 72 shares were issued under this plan at prices of $21.73 and $24.07. |
Employee_benefit_plans
Employee benefit plans | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Employee benefit plans [Abstract] | |||||||||||||
Employee benefit plans | Employee benefit plans | ||||||||||||
Profit sharing/401(k) plan – We maintain a profit sharing/401(k) plan to provide retirement benefits for certain employees. The plan covers a majority of our full-time employees, as well as some part-time employees. Employees are eligible to participate in the plan on the first day of the quarter following their first full year of service. | |||||||||||||
Profit sharing contributions are made solely by Deluxe and are remitted to the plan's trustee. These contributions vary based on the company's performance. 401(k) contributions are made by both employees and Deluxe. Employees under the age of 50 could contribute up to the lesser of $18 or 50% of eligible wages during 2014. Employees 50 years of age or older could make contributions of up to $23 during 2014. For the majority of employees, we match 100% of the first 1% of wages contributed by employees and 50% of the next 5% of wages contributed, beginning on the first day of the quarter following an employee's first full year of service. All employee and employer contributions are remitted to the plan's trustee. Benefits provided by the plan are paid from accumulated funds of the trust. | |||||||||||||
Employees are provided a broad range of investment options to choose from when investing their profit sharing/401(k) plan funds. Investing in our common stock is not one of these options, although funds selected by employees may at times hold our common stock. | |||||||||||||
Cash bonus programs – We provide both short-term and long-term cash bonus programs under which employees may receive cash bonus payments based on specified performance criteria. Our short-term programs are based on our performance for a given fiscal year and payments earned are paid directly to employees shortly after the end of the year. Our long-term incentive programs have performance periods of three years, and any payments earned are paid directly to employees shortly after the end of each three-year period. | |||||||||||||
Expense recognized in the consolidated statements of income for these plans was as follows for the years ended December 31: | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Performance-based compensation plans(1) | $ | 29,629 | $ | 25,561 | $ | 33,007 | |||||||
401(k) expense | 7,209 | 7,004 | 6,680 | ||||||||||
(1) Includes expense for profit sharing contributions, as they vary based on our performance. Excludes expense for stock-based compensation, which is discussed in Note 10: Share-based compensation. | |||||||||||||
Deferred compensation plan – We have a non-qualified deferred compensation plan that allows eligible employees to defer a portion of their compensation. Participants can elect to defer up to 100% of their base salary plus up to 50% of their bonus for the year. The compensation deferred under this plan is credited with earnings or losses measured by the mirrored rate of return on phantom investments elected by plan participants, which are similar to the investments available for funds invested under our profit sharing/401(k) plan. Each participant is fully vested in all deferred compensation and earnings. A participant may elect to receive deferred amounts in a lump-sum payment or in monthly installments upon termination of employment or disability. Our total liability under this plan was $3,466 as of December 31, 2014 and $3,266 as of December 31, 2013. These amounts are reflected in accrued liabilities and other non-current liabilities in the consolidated balance sheets. We fund this liability through investments in company-owned life insurance policies. These investments are included in long-term investments in the consolidated balance sheets and totaled $12,873 as of December 31, 2014 and $12,363 as of December 31, 2013. | |||||||||||||
Voluntary employee beneficiary association (VEBA) trust – We have formed a VEBA trust to fund employee and retiree medical costs and severance benefits. Contributions to the VEBA trust are tax deductible, subject to annual limitations contained in the Internal Revenue Code. VEBA assets consist of investments in cash equivalents. Total contributions to the VEBA trust were $14,000 in 2014, $25,700 in 2013 and $34,070 in 2012. Our liability for incurred but not reported medical claims exceeded the assets in the VEBA trust by $201 as of December 31, 2014 and $2,154 as of December 31, 2013. These amounts are included in accrued liabilities in the consolidated balance sheets. |
Postretirement_benefits
Postretirement benefits | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||
Postretirement benefits | Postretirement benefits | ||||||||||||||||||
We have historically provided certain health care benefits for a large number of retired U.S. employees. Employees hired prior to January 1, 2002 become eligible for benefits if they attain the appropriate years of service and age prior to retirement. Employees hired on January 1, 2002 or later are not eligible to participate in our retiree health care plan. In addition to our retiree health care plan, we also have a supplemental executive retirement plan (SERP) in the United States. The SERP is no longer an active plan. It is not adding new participants and all of the current participants are retired. The SERP has no plan assets, but our obligation is fully funded by investments in company-owned life insurance policies. | |||||||||||||||||||
In December 2012, we made the decision to enroll in an Employee Group Waiver Plan (EGWP) effective in January 2014. Participation in the EGWP allows us to offer substantially the same postretirement benefits to eligible participants while increasing subsidy reimbursements. This decision reduced the benefit obligation for our postretirement benefit plan by approximately $15,600 as of December 31, 2012, which was reflected as an actuarial gain in accumulated other comprehensive loss in the consolidated balance sheets and is being amortized into postretirement benefit (income) expense on the straight-line basis, with a remaining amortization period of 17 years. | |||||||||||||||||||
In December 2012, we executed a plan amendment affecting certain of our plan participants. Effective January 1, 2014, our consumer-driven health plans for those over the age of 65 were modified to coordinate with an EGWP, and we modified the co-payment structure for prescription drug benefits for certain plan participants. The impact of this plan amendment was reflected in our December 31, 2012 plan measurement, and reduced the benefit obligation by $5,063. This amount is included in accumulated other comprehensive loss in the consolidated balance sheets and is being amortized into postretirement benefit (income) expense on the straight-line basis over 17 years. | |||||||||||||||||||
Obligations and funded status – The following tables summarize the change in benefit obligation, plan assets and funded status during 2014 and 2013: | |||||||||||||||||||
(in thousands) | Postretirement benefit plan | Pension plan | |||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||
Benefit obligation, December 31, 2012 | $ | 117,230 | $ | 3,872 | |||||||||||||||
Interest cost | 3,535 | 117 | |||||||||||||||||
Net actuarial gain | (2,666 | ) | (237 | ) | |||||||||||||||
Benefits paid from plan assets and company funds | (10,386 | ) | (324 | ) | |||||||||||||||
Medicare Part D reimbursements | 854 | — | |||||||||||||||||
Benefit obligation, December 31, 2013 | 108,567 | 3,428 | |||||||||||||||||
Interest cost | 4,414 | 139 | |||||||||||||||||
Net actuarial (gain) loss | (3,513 | ) | 621 | ||||||||||||||||
Benefits paid from plan assets and company funds | (9,878 | ) | (324 | ) | |||||||||||||||
Medicare Part D reimbursements | 842 | — | |||||||||||||||||
Benefit obligation, December 31, 2014 | $ | 100,432 | $ | 3,864 | |||||||||||||||
Change in plan assets: | |||||||||||||||||||
Fair value of plan assets, December 31, 2012 | $ | 122,223 | $ | — | |||||||||||||||
Return on plan assets | 18,886 | — | |||||||||||||||||
Benefits paid | (7,561 | ) | — | ||||||||||||||||
Fair value of plan assets, December 31, 2013 | 133,548 | — | |||||||||||||||||
Return on plan assets | 7,701 | — | |||||||||||||||||
Benefits paid | (8,434 | ) | — | ||||||||||||||||
Transfer of assets to VEBA trust | (8,140 | ) | — | ||||||||||||||||
Fair value of plan assets, December 31, 2014 | $ | 124,675 | $ | — | |||||||||||||||
Funded status, December 31, 2013 | $ | 24,981 | $ | (3,428 | ) | ||||||||||||||
Funded status, December 31, 2014 | $ | 24,243 | $ | (3,864 | ) | ||||||||||||||
As of December 31, 2014 and 2013, the accumulated benefit obligation for the SERP equaled its projected benefit obligation. | |||||||||||||||||||
Previously, a portion of our plan assets could be used only to pay prescription drug benefits for pre-1986 retirees. During 2014, a plan amendment was executed which allowed these assets to be used for medical and severance benefits for retired and active employees. As such, as of our December 31, 2014 measurement date, these assets were no longer plan assets of our postretirement benefit plan, but became assets of our VEBA trust (Note 11). Plan assets were reduced $8,140 as a result of this amendment. | |||||||||||||||||||
The funded status of our plans was recognized in the consolidated balance sheets as of December 31 as follows: | |||||||||||||||||||
Postretirement benefit plan | Pension plan | ||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Other non-current assets | $ | 24,243 | $ | 24,981 | $ | — | $ | — | |||||||||||
Accrued liabilities | — | — | 324 | 324 | |||||||||||||||
Other non-current liabilities | — | — | 3,540 | 3,104 | |||||||||||||||
Amounts included in accumulated other comprehensive loss as of December 31 that have not been recognized as components of postretirement benefit expense were as follows: | |||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||
Unrecognized prior service credit | $ | 19,863 | $ | 21,284 | |||||||||||||||
Unrecognized net actuarial loss | (65,073 | ) | (70,350 | ) | |||||||||||||||
Tax effect | 12,805 | 14,192 | |||||||||||||||||
Amount recognized in accumulated other comprehensive loss, net of tax | $ | (32,405 | ) | $ | (34,874 | ) | |||||||||||||
The unrecognized prior service credit relates to our postretirement benefit plan and is a result of previous plan amendments which reduced the accumulated postretirement benefit obligation. A reduction is first used to reduce any existing unrecognized prior service cost, then to reduce any remaining unrecognized transition obligation. The excess is the unrecognized prior service credit. The prior service credit is being amortized on the straight-line basis over a weighted-average period of 21 years. The amortization period for the prior service credit is the average remaining life expectancy of plan participants at the time of the plan amendment. | |||||||||||||||||||
The unrecognized net actuarial loss resulted from experience different from that assumed and from changes in assumptions. Unrecognized actuarial gains and losses for our postretirement benefit plan are being amortized over the average remaining life expectancy of inactive plan participants, which is currently 17 years, as a large percentage of the plan participants are classified as inactive. | |||||||||||||||||||
Amounts included in accumulated other comprehensive loss as of December 31, 2014 which we expect to recognize in postretirement benefit expense during 2015 are as follows: | |||||||||||||||||||
(in thousands) | Amounts expected to be expensed | ||||||||||||||||||
Prior service credit | $ | (1,421 | ) | ||||||||||||||||
Net actuarial loss | 3,120 | ||||||||||||||||||
Total | $ | 1,699 | |||||||||||||||||
Postretirement benefit (income) expense – Postretirement benefit (income) expense for the years ended December 31 consisted of the following components: | |||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||
Interest cost | $ | 4,553 | $ | 3,652 | $ | 6,061 | |||||||||||||
Expected return on plan assets | (8,734 | ) | (8,030 | ) | (7,803 | ) | |||||||||||||
Amortization of prior service credit | (1,421 | ) | (1,421 | ) | (3,055 | ) | |||||||||||||
Amortization of net actuarial losses | 3,418 | 4,439 | 5,879 | ||||||||||||||||
Net periodic benefit (income) expense | $ | (2,184 | ) | $ | (1,360 | ) | $ | 1,082 | |||||||||||
Actuarial assumptions – In measuring benefit obligations as of December 31, the following discount rate assumptions were used: | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Discount rate | 3.45 | % | 4.25 | % | |||||||||||||||
In measuring net periodic benefit (income) expense for the years ended December 31, the following assumptions were used: | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Discount rate | 4.25 | % | 3.15 | % | 4.2 | % | |||||||||||||
Expected return on plan assets | 6.75 | % | 6.75 | % | 7.25 | % | |||||||||||||
The discount rate assumption is based on the rates of return on high-quality, fixed-income instruments currently available whose cash flows approximate the timing and amount of expected benefit payments. In determining the discount rate, we utilize the Aon Hewitt AA Above Median Curve and the Citigroup Pension Discount yield curves to discount each cash flow stream at an interest rate specifically applicable to the timing of each respective cash flow. The present value of each cash flow stream is aggregated and used to impute a weighted-average discount rate. | |||||||||||||||||||
In determining the expected long-term rate of return on plan assets, we utilize our historical returns and then adjust these returns for estimated inflation and projected market returns. Our inflation assumption is primarily based on analysis of historical inflation data. | |||||||||||||||||||
In measuring benefit obligations as of December 31 for our postretirement benefit plan, the following assumptions for health care cost trend rates were used: | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Participants under age 65 | Participants age 65 and older | Participants under age 65 | Participants age 65 and older | Participants under age 65 | Participants age 65 and older | ||||||||||||||
Health care cost trend rate assumed for next year | 7.5 | % | 7 | % | 7.75 | % | 7.25 | % | 8 | % | 7.5 | % | |||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5 | % | 5 | % | 5 | % | 5 | % | 5 | % | 5 | % | |||||||
Year that the rate reaches the ultimate trend rate | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||
Assumed health care cost trend rates have an effect on the amounts reported for health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: | |||||||||||||||||||
(in thousands) | One percentage point increase | One percentage point decrease | |||||||||||||||||
Effect on total of service and interest cost | $ | 55 | $ | (52 | ) | ||||||||||||||
Effect on benefit obligation | 1,607 | (1,506 | ) | ||||||||||||||||
Plan assets – The allocation of plan assets by asset category as of December 31 was as follows: | |||||||||||||||||||
Postretirement benefit plan | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
U.S. large capitalization equity securities | 33 | % | 35 | % | |||||||||||||||
International equity securities | 18 | % | 18 | % | |||||||||||||||
Mortgage-backed securities | 14 | % | 12 | % | |||||||||||||||
Government debt securities | 14 | % | 11 | % | |||||||||||||||
U.S. corporate debt securities | 14 | % | 10 | % | |||||||||||||||
U.S. small and mid-capitalization equity securities | 7 | % | 7 | % | |||||||||||||||
Other debt securities | — | 7 | % | ||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||
Our postretirement benefit plan has assets that are intended to meet long-term obligations. In order to meet these obligations, we employ a total return investment approach which considers cash flow needs and balances long-term projected returns against expected asset risk, as measured using projected standard deviations. Risk tolerance is established through consideration of projected plan liabilities, the plan's funded status, projected liquidity needs and current corporate financial condition. | |||||||||||||||||||
The target asset allocation percentages for our postretirement benefit plan are based on our liability and asset projections. The targeted allocation of plan assets is 33% large capitalization equity securities, 42% fixed income securities, 18% international equity securities and 7% small and mid-capitalization equity securities. | |||||||||||||||||||
Information regarding fair value measurements of plan assets was as follows: | |||||||||||||||||||
Fair value measurements using | |||||||||||||||||||
Fair value as of | Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||
December 31, | |||||||||||||||||||
(in thousands) | 2014 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
U.S. large capitalization equity securities | $ | 40,847 | $ | — | $ | 40,847 | $ | — | |||||||||||
International equity securities | 22,416 | 21,823 | 593 | — | |||||||||||||||
U.S. corporate debt securities | 17,823 | — | 17,823 | — | |||||||||||||||
Mortgage-backed securities | 17,713 | — | 17,713 | — | |||||||||||||||
Government debt securities | 17,031 | — | 17,031 | — | |||||||||||||||
U.S. small and mid-capitalization equity securities | 8,702 | 7,090 | 1,612 | — | |||||||||||||||
Other debt securities | 143 | 54 | 89 | — | |||||||||||||||
Total | $ | 124,675 | $ | 28,967 | $ | 95,708 | $ | — | |||||||||||
Fair value measurements using | |||||||||||||||||||
Fair value as of | Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||
December 31, | |||||||||||||||||||
(in thousands) | 2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
U.S. large capitalization equity securities | $ | 45,876 | $ | 3,033 | $ | 42,843 | $ | — | |||||||||||
International equity securities | 24,269 | 23,397 | 872 | — | |||||||||||||||
Mortgage-backed securities | 16,060 | — | 16,060 | — | |||||||||||||||
Government debt securities | 14,946 | — | 14,946 | — | |||||||||||||||
U.S. corporate debt securities | 13,287 | — | 13,287 | — | |||||||||||||||
U.S. small and mid-capitalization equity securities | 9,646 | 9,470 | 176 | — | |||||||||||||||
Other debt securities | 9,464 | 7,297 | 2,167 | — | |||||||||||||||
Total | $ | 133,548 | $ | 43,197 | $ | 90,351 | $ | — | |||||||||||
The fair value of certain government debt securities, U.S. corporate debt securities, mortgage-backed securities, and other debt securities has been reclassified from Level 1 to Level 2 as of December 31, 2014, as the fair value measures are based on observable inputs other than quoted prices in active markets. Prior year amounts have been revised to reflect this change in fair value leveling. This revision had no impact on our consolidated balance sheets as of December 31, 2014 and December 31, 2013. | |||||||||||||||||||
The fair value of Level 2 mortgage-backed securities is estimated using pricing models with inputs derived principally from observable market data. The fair value of our other Level 2 debt securities is typically estimated using pricing models, quoted prices of securities with similar characteristics or discounted cash flow calculations that maximize observable inputs, such as current yields for similar instruments adjusted for trades and other pertinent market information. Our policy is to recognize transfers between fair value levels as of the end of the reporting period in which the transfer occurred. | |||||||||||||||||||
Cash flows – While we are not contractually obligated to make contributions to the assets of our postretirement benefit plan, we made contributions of $7,600 to the plan during 2012. We made no contributions to plan assets during 2014 and 2013. | |||||||||||||||||||
We have fully funded the United States SERP obligation with investments in company-owned life insurance policies. The cash surrender value of these policies is included in long-term investments in the consolidated balance sheets and totaled $7,239 as of December 31, 2014 and $6,914 as of December 31, 2013. | |||||||||||||||||||
The following benefit payments are expected to be paid during the years indicated: | |||||||||||||||||||
(in thousands) | Postretirement benefit plan | Pension plan | |||||||||||||||||
2015 | $ | 9,100 | $ | 320 | |||||||||||||||
2016 | 9,200 | 320 | |||||||||||||||||
2017 | 9,400 | 310 | |||||||||||||||||
2018 | 9,100 | 300 | |||||||||||||||||
2019 | 8,500 | 290 | |||||||||||||||||
2020 - 2024 | 35,100 | 1,280 | |||||||||||||||||
Debt_and_lease_obligations
Debt and lease obligations | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt and lease obligations [Abstract] | |||||||||
Debt and lease obligations | Debt and lease obligations | ||||||||
Debt – Debt outstanding was comprised of the following at December 31: | |||||||||
(in thousands) | 2014 | 2013 | |||||||
7.0% senior notes due March 15, 2019 | $ | 200,000 | $ | 200,000 | |||||
6.0% senior notes due November 15, 2020(1) | 191,933 | 183,761 | |||||||
Long-term portion of capital lease obligations | 1,468 | 1,354 | |||||||
Long-term portion of debt | 393,401 | 385,115 | |||||||
Amount drawn on credit facility | 160,000 | — | |||||||
5.125% senior, unsecured notes due October 1, 2014, net of discount(2) | — | 255,026 | |||||||
Capital lease obligations due within one year | 911 | 563 | |||||||
Total debt | $ | 554,312 | $ | 640,704 | |||||
(1) Includes decrease due to cumulative change in fair value of hedged debt of $8,067 as of December 31, 2014 and $16,239 as of December 31, 2013. | |||||||||
(2) Includes increase due to cumulative change in fair value of hedged debt of $1,569 as of December 31, 2013. | |||||||||
The discount from par value on the notes due in October 2014 was amortized ratably as an increase to interest expense over the term of the related debt. | |||||||||
All of our notes include covenants that place certain restrictions on the issuance of additional debt and limitations on certain liens. If our ratio of earnings before interest, taxes, depreciation and amortization (EBITDA) to interest expense, as defined in such instruments, falls below two to one there would be additional limitations on our ability to issue additional debt. The notes due in 2020 and 2019 also include limitations on our ability to issue redeemable stock and preferred stock, make loans and investments, and consolidate, merge or sell all or substantially all of our assets. Absent certain defined events of default under our debt instruments, and as long as our ratio of EBITDA to interest expense is in excess of two to one, our debt covenants do not restrict our ability to pay cash dividends at our current rate. There are currently no limitations on the amount of dividends and share repurchases under the terms of our credit facility agreement. However, if our leverage ratio, defined as total debt less unrestricted cash to EBITDA, should exceed 2.75 to one, there would be an annual limitation on the amount of dividends and share repurchases under the terms of the credit facility. | |||||||||
In November 2012, we issued $200,000 of 6.0% senior notes maturing on November 15, 2020. The notes were issued via a private placement under Rule 144A of the Securities Act of 1933. These notes were subsequently registered with the Securities and Exchange Commission (SEC) via a registration statement which became effective on April 3, 2013. Interest payments are due each May and November. The notes are guaranteed by certain of our subsidiaries and place a limitation on restricted payments, including share repurchases and increases in dividend levels. The limitation on restricted payments does not apply if the notes are upgraded to an investment-grade credit rating. Financial information for the guarantor subsidiaries can be found in Note 17. At any time prior to November 15, 2015, we may on one or more occasions redeem up to 35% of the original principal amount of the notes with the proceeds of one or more equity offerings at a redemption price of 106% of the principal amount of the notes, together with accrued and unpaid interest. At any time prior to November 15, 2016, we may also redeem some or all of the notes at a price equal to 100% of the principal amount plus accrued and unpaid interest and a make-whole premium. At any time on or after November 15, 2016, we may redeem some or all of the notes at prices ranging from 100% to 103% of the principal amount. If at any time we sell certain of our assets or experience specific types of changes in control, we must offer to purchase all of the outstanding notes at 101% of the principal amount. We classify payments for early redemption premiums as financing activities in our consolidated statements of cash flows. Proceeds from the offering, net of offering costs, were $196,340. These proceeds were used to retire $200,000 of long-term notes which were due in June 2015, realizing a pre-tax loss of $5,258 in 2012. The fair value of the notes issued in November 2012 was $210,000 as of December 31, 2014, based on quoted prices that are directly observable. As discussed in Note 6, we have entered into interest rate swaps to hedge these notes. | |||||||||
In March 2011, we issued $200,000 of 7.0% senior notes maturing on March 15, 2019. The notes were issued via a private placement under Rule 144A of the Securities Act of 1933. These notes were subsequently registered with the SEC via a registration statement which became effective on January 10, 2012. Interest payments are due each March and September. The notes are guaranteed by certain of our subsidiaries and place a limitation on restricted payments, including share repurchases and increases in dividend levels. The limitation on restricted payments does not apply if the notes are upgraded to an investment-grade credit rating. Financial information for the guarantor subsidiaries can be found in Note 17. At any time prior to March 15, 2015, we may also redeem some or all of the notes at a price equal to 100% of the principal amount plus accrued and unpaid interest and a make-whole premium. At any time on or after March 15, 2015, we may redeem some or all of the notes at prices ranging from 100% to 103.5% of the principal amount. If at any time we sell certain of our assets or experience specific types of changes in control, we must offer to purchase all of the outstanding notes at 101% of the principal amount. Proceeds from the offering, net of offering costs, were $196,195. These proceeds were used to retire a portion of our senior, unsecured notes due in 2012. The fair value of the notes issued in March 2011 was $209,000 as of December 31, 2014, based on quoted prices that are directly observable. In January 2015, we announced our intention to redeem these notes in March 2015. Further information can be found in Note 18: Subsequent events. | |||||||||
In October 2004, we issued $275,000 of 5.125% senior, unsecured notes which matured on October 1, 2014. The notes were issued via a private placement under Rule 144A of the Securities Act of 1933. These notes were subsequently registered with the SEC via a registration statement which became effective on November 23, 2004. Interest payments were due each April and October. Proceeds from the offering, net of offering costs, were $272,276. These proceeds were used to repay commercial paper borrowings used for the acquisition of New England Business Service, Inc. in 2004. As discussed in Note 6, we entered into interest rate swaps to hedge a portion of the notes. During 2011, we retired $10,000 of these notes and during 2009, we retired $11,500 of these notes. On October 1, 2014, we settled the remaining $253,500 of notes outstanding by utilizing cash on hand and borrowings under our credit facility. | |||||||||
Credit facility – As of December 31, 2014, we had a $350,000 credit facility, which is scheduled to expire in February 2019. Our commitment fee ranges from 0.20% to 0.40% based on our leverage ratio. Borrowings under the credit facility are collateralized by substantially all of our personal and intangible property. The credit agreement governing the 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 contains financial covenants regarding our leverage ratio, interest coverage and liquidity. | |||||||||
No amounts were borrowed under our credit facility during 2013 or 2012. Daily average amounts outstanding under our credit facility during 2014 were as follows: | |||||||||
(in thousands) | 2014 | ||||||||
Daily average amount outstanding | $ | 43,675 | |||||||
Weighted-average interest rate | 1.63 | % | |||||||
No amounts were outstanding under our credit facility as of December 31, 2013. As of December 31, 2014, $160,000 was outstanding under our credit facility at an average interest rate of 1.63%. Amounts available for borrowing under our credit facility as of December 31, 2014 were as follows: | |||||||||
(in thousands) | Total available | ||||||||
Credit facility commitment | $ | 350,000 | |||||||
Amount drawn on credit facility | (160,000 | ) | |||||||
Outstanding letters of credit(1) | (12,728 | ) | |||||||
Net available for borrowing as of December 31, 2014 | $ | 177,272 | |||||||
(1) We use standby letters of credit primarily to collateralize certain obligations related 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 credit facility. | |||||||||
Lease obligations – We had capital lease obligations of $2,379 as of December 31, 2014 and $1,917 as of December 31, 2013 related to information technology hardware. The lease obligations will be paid through October 2018. The related assets are included in property, plant and equipment in the consolidated balance sheets. Depreciation of the leased assets is included in depreciation expense in the consolidated statements of cash flows. A portion of the leased assets have not yet been placed in service. The balance of those leased assets placed in service as of December 31 was as follows: | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Machinery and equipment | $ | 2,911 | $ | 700 | |||||
Accumulated depreciation | (926 | ) | (131 | ) | |||||
Net assets under capital leases | $ | 1,985 | $ | 569 | |||||
In addition to capital leases, we also have operating leases on certain facilities and equipment. Rental expense was $13,099 for 2014, $11,855 for 2013 and $13,390 for 2012. As of December 31, 2014, future minimum lease payments under our capital lease obligations and noncancelable operating leases with terms in excess of one year were as follows: | |||||||||
(in thousands) | Capital lease obligations | Operating lease obligations | |||||||
2015 | $ | 934 | $ | 9,097 | |||||
2016 | 881 | 8,204 | |||||||
2017 | 526 | 4,112 | |||||||
2018 | 108 | 2,456 | |||||||
2019 | — | 1,902 | |||||||
Thereafter | — | 1,402 | |||||||
Total minimum lease payments | 2,449 | $ | 27,173 | ||||||
Less portion representing interest | (70 | ) | |||||||
Present value of minimum lease payments | $ | 2,379 | |||||||
Other_commitments_and_continge
Other commitments and contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other commitments and contingencies | Other commitments and contingencies |
Indemnifications – In the normal course of business, we periodically enter into agreements that incorporate general indemnification language. These indemnifications encompass third-party claims arising from our products and services, including 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 fees 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 have no reason to believe that any possible 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. | |
Environmental matters – We are currently involved in environmental compliance, investigation and remediation activities at some of our current and former sites, primarily printing facilities of our Financial Services and Small Business Services segments which have been sold. Remediation costs are accrued on an undiscounted basis when the obligations are either known or considered probable and can be reasonably estimated. Remediation or testing costs that result directly from the sale of an asset and which we would not have otherwise incurred are considered direct costs of the sale of the asset. As such, they are included in our measurement of the carrying value of the asset sold. | |
Accruals for environmental matters were $7,942 as of December 31, 2014 and $8,294 as of December 31, 2013, primarily related to facilities which have been sold. These accruals are included in accrued liabilities and other non-current liabilities in the consolidated balance sheets. Accrued costs consist of direct costs of the remediation activities, primarily fees which will be paid to outside engineering and consulting firms. Although recorded accruals include our best estimates, our total costs cannot be predicted with certainty due to various factors such as the extent of corrective action that may be required, evolving environmental laws and regulations and advances in environmental technology. Where the available information is sufficient to estimate the amount of the liability, that estimate is used. Where the information is only sufficient to establish a range of probable liability and no point within the range is more likely than any other, the lower end of the range is recorded. We do not believe that the range of possible outcomes could have a material effect on our financial condition, results of operations or liquidity. Expense reflected in our consolidated statements of income for environmental matters was $1,079 for 2014, $1,169 for 2013 and $969 for 2012. | |
As of December 31, 2014, $2,933 of the costs included in our environmental accruals were covered by an environmental insurance policy which we purchased during 2002. The insurance policy covers up to $12,911 of remediation costs, of which $9,978 had been paid through December 31, 2014. This insurance policy does not cover properties acquired subsequent to 2002. However, costs included in our environmental accruals for such properties were not significant as of December 31, 2014. The insurance policy also covers up to $10,000 of third-party claims through 2032 at certain owned, leased and divested sites, as well as any conditions discovered at certain owned or leased sites through 2012. We consider the realization of recovery under the insurance policy to be probable based on the insurance contract in place with a reputable and financially-sound insurance company. As our environmental accruals include our best estimates of these costs, we have recorded receivables from the insurance company within other current assets and other non-current assets based on the amounts of our environmental accruals for insured sites. We do not anticipate significant net cash outlays for environmental matters within the next five years. | |
We also have an additional environmental site liability insurance policy providing coverage on facilities which we acquired subsequent to 2002. This policy covers liability for claims of bodily injury or property damage arising from pollution events at the covered facilities. The policy also provides remediation coverage should we be required by a governing authority to perform remediation activities at the covered sites. The policy provides coverage of up to $15,000 through April 2019. No accruals have been recorded in our consolidated financial statements for any of the events contemplated in this insurance policy. | |
Self-insurance – We are self-insured for certain costs, primarily workers' compensation claims and medical and dental benefits. The liabilities associated with these items represent our best estimate of the ultimate obligations for reported claims plus those incurred, but not reported. The liability for workers' compensation, which totaled $4,040 as of December 31, 2014 and $4,560 as of December 31, 2013, is accounted for on a present value basis. The difference between the discounted and undiscounted workers' compensation liability was not significant as of December 31, 2014 or December 31, 2013. We record liabilities for medical and dental benefits for active employees and those employees on long-term disability. Our liability for active employees is not accounted for on a present value basis as we expect the benefits to be paid in a relatively short period of time. Our liability for those employees on long-term disability is accounted for on a present value basis. Our total liability for these medical and dental benefits totaled $2,361 as of December 31, 2014 and $3,322 as of December 31, 2013. The difference between the discounted and undiscounted medical and dental liability was $149 as of December 31, 2013. The discount amount was not significant as of December 31, 2014. | |
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. | |
Shareholders_equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' equity | Shareholders’ equity |
Common shares repurchased – We have an outstanding authorization from our board of directors to purchase up to 10,000 shares of our common stock. This authorization has no expiration date, and 1,962 shares remained available for purchase under this authorization as of December 31, 2014. During 2014, we repurchased 1,133 shares for $60,119, during 2013 we repurchased 1,162 shares for $48,798 and during 2012 we repurchased 999 shares for $27,155. | |
Common stock purchase rights – In February 1988, we adopted a shareholder rights plan under which common stock purchase rights automatically attach to each share of common stock we issue. The rights plan is governed by a rights agreement between us and Wells Fargo Bank, National Association, as rights agent. This agreement most recently was amended and restated as of December 20, 2006 (Restated Agreement). | |
Pursuant to the Restated Agreement, upon the occurrence of certain events, each right will entitle the holder to purchase one share of common stock at an exercise price of $100 per share. The exercise price may be adjusted from time to time upon the occurrence of certain events outlined in the Restated Agreement. In certain circumstances described in the Restated Agreement, if (i) any person becomes the beneficial owner of 20% or more of the company's common stock, (ii) the company is acquired in a merger or other business combination or (iii) upon the occurrence of other events, each right will entitle its holder to purchase a number of shares of common stock of the company, or the acquirer or the surviving entity if the company is not the surviving corporation in such a transaction. The number of shares purchasable at the then-current exercise price will be equal to the exercise price of the right divided by 50% of the then-current market price of one share of common stock of the company, or other surviving entity, subject to adjustments provided in the Restated Agreement. The rights expire December 31, 2016, and may be redeemed by the company at a price of $0.01 per right at any time prior to the occurrence of the circumstances described above. | |
Business_segment_information
Business segment information | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||
Business segment information | Note 16: Business segment information | ||||||||||||||||||||||
We operate three reportable business segments: Small Business Services, Financial Services and Direct Checks. Our business segments are generally organized by type of customer served and reflect the way we manage the company. Small Business Services promotes and sells products and services to small businesses via direct response mail and internet advertising, referrals from financial institutions and telecommunications clients, Safeguard distributors, a network of local dealers, a direct sales force which focuses on major accounts, and an outbound telemarketing group. Financial Services' products and services are sold primarily through a direct sales force, which executes product and service supply contracts with our financial institution clients nationwide, including banks, credit unions and financial services companies. In the case of check supply contracts, once the financial institution relationship is established, consumers may submit their check orders through their financial institution or over the phone or internet. Direct Checks sells products and services directly to consumers using direct marketing, including print advertising and search engine marketing and optimization strategies. In January 2015, we decided that we will begin reporting the results of operations of two company-owned small business distributors within the Financial Services segment beginning in 2015. These results are currently included in the Small Business Services segment. Further information can be found in Note 18: Subsequent events. All three segments operate primarily in the United States. Small Business Services also has operations in Canada and portions of Europe. No single customer accounted for more than 10% of revenue during the past three years. | |||||||||||||||||||||||
Our product and service offerings are comprised of the following: | |||||||||||||||||||||||
Checks – We remain one of the largest providers of checks in the United States, both in terms of revenue and the number of checks produced. Checks account for the majority of the revenue in our Financial Services and Direct Checks segments and represented 40.7% of our Small Business Services segment's revenue in 2014. | |||||||||||||||||||||||
Marketing solutions and other services – All three of our segments offer products and services that help small businesses and/or financial institutions promote their businesses and acquire customers, as well as provide various other service offerings. Our Small Business Services segment offers services designed to fulfill the sales and marketing needs of small businesses, including web design, hosting and other web services; search engine optimization; marketing services, including email, mobile, social media and other self-service marketing solutions; digital printing services; and logo design. In addition, Small Business Services offers products such as promotional products, postcards, brochures, retail packaging supplies, apparel, greeting cards and business cards, as well as service offerings, including fraud protection and security, and payroll services. Financial Services offers various customer acquisition programs, marketing communications services, rewards and loyalty programs, fraud protection and security services, financial institution profitability and risk management services, and a suite of financial technology solutions that integrates receivables, accelerates deposits and payments, and eliminates paper. Our Direct Checks segment provides fraud protection and security services, as well as package insert programs under which companies' marketing materials are included in our check packages. | |||||||||||||||||||||||
Forms – Our Small Business Services segment provides printed forms to small businesses, including deposit tickets, billing forms, work orders, job proposals, purchase orders, invoices and personnel forms. This segment also offers computer forms compatible with accounting software packages commonly used by small businesses. Forms sold by our Financial Services and Direct Checks segments include deposit tickets and check registers. | |||||||||||||||||||||||
Accessories and other products – Small Business Services provides products designed to supply small business owners with the customized documents necessary to efficiently manage their business including envelopes, office supplies, stamps and labels. Our Financial Services and Direct Checks segments offer checkbook covers and stamps. | |||||||||||||||||||||||
The accounting policies of the segments are the same as those described in Note 1. We allocate corporate costs for our shared services functions to our business segments, including costs of our executive management, human resources, supply chain, finance, information technology and legal functions. Generally, where costs incurred are directly attributable to a business segment, primarily within the areas of information technology, supply chain and finance, those costs are charged directly to that segment. Because we use a shared services approach for many of our functions, certain costs are not directly attributable to a business segment. These costs are allocated to our business segments based on segment revenue, as revenue is a measure of the relative size and magnitude of each segment and indicates the level of corporate shared services consumed by each segment. Corporate assets are not allocated to the segments and consist of property, plant and equipment, internal-use software, inventories and supplies related to our corporate shared services functions of manufacturing, information technology and real estate, as well as long-term investments. Depreciation and amortization expense related to corporate assets which was allocated to the segments was $34,801 in 2014, $37,893 in 2013 and $40,729 in 2012. | |||||||||||||||||||||||
We are an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations and the sharing of assets. Therefore, we do not represent that these segments, if operated independently, would report the operating income and other financial information shown. | |||||||||||||||||||||||
The following is our segment information as of and for the years ended December 31: | |||||||||||||||||||||||
Reportable Business Segments | |||||||||||||||||||||||
(in thousands) | Small Business Services | Financial Services | Direct Checks | Corporate | Consolidated | ||||||||||||||||||
Total revenue from external | 2014 | $ | 1,129,250 | $ | 368,384 | $ | 176,448 | $ | — | $ | 1,674,082 | ||||||||||||
customers: | 2013 | 1,050,250 | 343,160 | 191,414 | — | 1,584,824 | |||||||||||||||||
2012 | 961,631 | 341,135 | 212,151 | — | 1,514,917 | ||||||||||||||||||
Operating income: | 2014 | 188,335 | 86,799 | 57,499 | — | 332,633 | |||||||||||||||||
2013 | 175,888 | 82,343 | 59,683 | — | 317,914 | ||||||||||||||||||
2012 | 160,363 | 77,728 | 63,937 | — | 302,028 | ||||||||||||||||||
Depreciation and amortization | 2014 | 44,622 | 14,471 | 6,749 | — | 65,842 | |||||||||||||||||
expense: | 2013 | 45,329 | 11,231 | 7,913 | — | 64,473 | |||||||||||||||||
2012 | 44,408 | 12,059 | 9,185 | — | 65,652 | ||||||||||||||||||
Asset impairment charges: | 2014 | 6,468 | — | — | — | 6,468 | |||||||||||||||||
2013 | 5,000 | — | — | — | 5,000 | ||||||||||||||||||
2012 | — | — | — | — | — | ||||||||||||||||||
Total assets: | 2014 | 956,349 | 267,258 | 164,171 | 300,613 | 1,688,391 | |||||||||||||||||
2013 | 943,868 | 109,612 | 167,283 | 348,766 | 1,569,529 | ||||||||||||||||||
2012 | 877,840 | 82,150 | 169,936 | 282,514 | 1,412,440 | ||||||||||||||||||
Capital asset purchases: | 2014 | — | — | — | 41,119 | 41,119 | |||||||||||||||||
2013 | — | — | — | 37,459 | 37,459 | ||||||||||||||||||
2012 | — | — | — | 35,193 | 35,193 | ||||||||||||||||||
Revenue by product and service category for the years ended December 31 was as follows: | |||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||
Checks, including contract settlements | $ | 870,910 | $ | 884,605 | $ | 890,018 | |||||||||||||||||
Marketing solutions and other services | 427,098 | 343,006 | 285,520 | ||||||||||||||||||||
Forms | 216,842 | 200,560 | 200,379 | ||||||||||||||||||||
Accessories and other products | 159,232 | 156,653 | 139,000 | ||||||||||||||||||||
Total revenue | $ | 1,674,082 | $ | 1,584,824 | $ | 1,514,917 | |||||||||||||||||
The following information as of and for the years ended December 31 is based on the geographic locations of our subsidiaries: | |||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||
Total revenue from external customers: | |||||||||||||||||||||||
United States | $ | 1,593,898 | $ | 1,501,176 | $ | 1,427,593 | |||||||||||||||||
Foreign, primarily Canada | 80,184 | 83,648 | 87,324 | ||||||||||||||||||||
Total revenue | $ | 1,674,082 | $ | 1,584,824 | $ | 1,514,917 | |||||||||||||||||
Long-lived assets(1): | |||||||||||||||||||||||
United States | $ | 1,310,830 | $ | 1,191,084 | $ | 1,131,525 | |||||||||||||||||
Foreign, primarily Canada | 12,220 | 14,681 | 14,274 | ||||||||||||||||||||
Total long-lived assets | $ | 1,323,050 | $ | 1,205,765 | $ | 1,145,799 | |||||||||||||||||
(1) Long-lived assets consist of total assets less current assets and long-term investments. |
Supplemental_guarantor_financi
Supplemental guarantor financial information | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Supplemental guarantor financial information [Abstract] | |||||||||||||||||||||
Supplemental guarantor financial information | Supplemental guarantor financial information | ||||||||||||||||||||
Our long-term notes due in 2019 and 2020 (Note 13), as well as obligations under our credit facility, are jointly and severally guaranteed on a full and unconditional basis, subject to the release provisions described herein, by certain 100%-owned subsidiaries. The subsidiary guarantees with respect to our long-term notes are subject to release upon the occurrence of certain events: the sale of all or substantially all of a subsidiary's assets, when the requirements for defeasance of the guaranteed securities have been satisfied, when the subsidiary is declared an unrestricted subsidiary, or upon satisfaction and discharge of the indenture. | |||||||||||||||||||||
The following condensed supplemental consolidating financial information reflects the summarized financial information of Deluxe Corporation, the guarantors on a combined basis and the non-guarantor subsidiaries on a combined basis. Separate financial statements of the guarantors are not presented because the guarantors are jointly, severally, fully and unconditionally liable under the guarantees, subject to the release provisions described herein, and we believe that the condensed consolidating financial statements presented are sufficient to provide an understanding of the financial position, results of operations and cash flows of the guarantors. | |||||||||||||||||||||
We are an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations and the sharing of assets. Therefore, we do not represent that the financial information presented is indicative of the financial position, results of operations or cash flows which the entities would have reported if they had operated independently. The condensed consolidating financial statements should be read in conjunction with our consolidated financial statements. | |||||||||||||||||||||
Deluxe Corporation | |||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
(in thousands) | Deluxe Corporation | Guarantor subsidiaries | Non-guarantor subsidiaries | Eliminations | Total | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 8,335 | $ | 4,342 | $ | 52,193 | $ | (3,329 | ) | $ | 61,541 | ||||||||||
Trade accounts receivable, net | — | 100,197 | 13,459 | — | 113,656 | ||||||||||||||||
Inventories and supplies | — | 34,097 | 5,314 | — | 39,411 | ||||||||||||||||
Deferred income taxes | 8,929 | 1,182 | 48 | — | 10,159 | ||||||||||||||||
Funds held for customers | — | — | 43,604 | — | 43,604 | ||||||||||||||||
Other current assets | 8,538 | 38,912 | 3,069 | — | 50,519 | ||||||||||||||||
Total current assets | 25,802 | 178,730 | 117,687 | (3,329 | ) | 318,890 | |||||||||||||||
Deferred income taxes | 660 | — | 1,411 | (660 | ) | 1,411 | |||||||||||||||
Long-term investments | 38,623 | 7,828 | — | — | 46,451 | ||||||||||||||||
Property, plant and equipment, net | 4,868 | 76,306 | 6,449 | — | 87,623 | ||||||||||||||||
Assets held for sale | — | 3,102 | 23,717 | — | 26,819 | ||||||||||||||||
Intangibles, net | 987 | 203,967 | 2,226 | — | 207,180 | ||||||||||||||||
Goodwill | — | 866,659 | 1,717 | — | 868,376 | ||||||||||||||||
Investments in consolidated subsidiaries | 1,268,918 | 90,960 | — | (1,359,878 | ) | — | |||||||||||||||
Intercompany receivable | — | 82,758 | 536 | (83,294 | ) | — | |||||||||||||||
Other non-current assets | 9,675 | 121,549 | 417 | — | 131,641 | ||||||||||||||||
Total assets | $ | 1,349,533 | $ | 1,631,859 | $ | 154,160 | $ | (1,447,161 | ) | $ | 1,688,391 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable | $ | 13,792 | $ | 73,380 | $ | 3,373 | $ | (3,329 | ) | $ | 87,216 | ||||||||||
Accrued liabilities | 26,278 | 141,816 | 51,027 | — | 219,121 | ||||||||||||||||
Short-term borrowings | 160,000 | — | — | — | 160,000 | ||||||||||||||||
Long-term debt due within one year | 903 | — | 8 | — | 911 | ||||||||||||||||
Total current liabilities | 200,973 | 215,196 | 54,408 | (3,329 | ) | 467,248 | |||||||||||||||
Long-term debt | 393,387 | — | 14 | — | 393,401 | ||||||||||||||||
Deferred income taxes | — | 96,498 | — | (660 | ) | 95,838 | |||||||||||||||
Intercompany payable | 83,294 | — | — | (83,294 | ) | — | |||||||||||||||
Other non-current liabilities | 24,382 | 51,247 | 8,778 | — | 84,407 | ||||||||||||||||
Total shareholders' equity | 647,497 | 1,268,918 | 90,960 | (1,359,878 | ) | 647,497 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 1,349,533 | $ | 1,631,859 | $ | 154,160 | $ | (1,447,161 | ) | $ | 1,688,391 | ||||||||||
Deluxe Corporation | |||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
(in thousands) | Deluxe Corporation | Guarantor subsidiaries | Non-guarantor subsidiaries | Eliminations | Total | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 71,972 | $ | 6,991 | $ | 45,229 | $ | (3,103 | ) | $ | 121,089 | ||||||||||
Trade accounts receivable, net | — | 70,317 | 17,732 | — | 88,049 | ||||||||||||||||
Inventories and supplies | — | 24,173 | 4,793 | — | 28,966 | ||||||||||||||||
Deferred income taxes | 2,698 | 4,198 | 50 | — | 6,946 | ||||||||||||||||
Funds held for customers | — | — | 42,425 | — | 42,425 | ||||||||||||||||
Other current assets | 8,266 | 20,118 | 3,454 | — | 31,838 | ||||||||||||||||
Total current assets | 82,936 | 125,797 | 113,683 | (3,103 | ) | 319,313 | |||||||||||||||
Deferred income taxes | — | — | 1,851 | — | 1,851 | ||||||||||||||||
Long-term investments | 35,155 | 9,296 | — | — | 44,451 | ||||||||||||||||
Property, plant and equipment, net | — | 93,472 | 7,871 | — | 101,343 | ||||||||||||||||
Assets held for sale | — | 4,046 | 21,405 | — | 25,451 | ||||||||||||||||
Intangibles, net | — | 151,361 | 2,215 | — | 153,576 | ||||||||||||||||
Goodwill | — | 820,898 | 1,879 | — | 822,777 | ||||||||||||||||
Investments in consolidated subsidiaries | 1,155,705 | 82,918 | — | (1,238,623 | ) | — | |||||||||||||||
Intercompany receivable | — | 39,192 | 1,373 | (40,565 | ) | — | |||||||||||||||
Other non-current assets | 8,077 | 92,461 | 229 | — | 100,767 | ||||||||||||||||
Total assets | $ | 1,281,873 | $ | 1,419,441 | $ | 150,506 | $ | (1,282,291 | ) | $ | 1,569,529 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable | $ | 11,831 | $ | 54,655 | $ | 8,109 | $ | (3,103 | ) | $ | 71,492 | ||||||||||
Accrued liabilities | 13,794 | 97,577 | 51,619 | — | 162,990 | ||||||||||||||||
Long-term debt due within one year | 255,589 | — | — | — | 255,589 | ||||||||||||||||
Total current liabilities | 281,214 | 152,232 | 59,728 | (3,103 | ) | 490,071 | |||||||||||||||
Long-term debt | 385,115 | — | — | — | 385,115 | ||||||||||||||||
Deferred income taxes | 2,821 | 79,993 | — | — | 82,814 | ||||||||||||||||
Intercompany payable | 40,565 | — | — | (40,565 | ) | — | |||||||||||||||
Other non-current liabilities | 21,701 | 31,511 | 7,860 | — | 61,072 | ||||||||||||||||
Total shareholders' equity | 550,457 | 1,155,705 | 82,918 | (1,238,623 | ) | 550,457 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 1,281,873 | $ | 1,419,441 | $ | 150,506 | $ | (1,282,291 | ) | $ | 1,569,529 | ||||||||||
Deluxe Corporation | |||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
(in thousands) | Deluxe Corporation | Guarantor subsidiaries | Non-guarantor subsidiaries | Eliminations | Total | ||||||||||||||||
Product revenue | $ | — | $ | 1,311,729 | $ | 99,129 | $ | — | $ | 1,410,858 | |||||||||||
Service revenue | 78,019 | 237,712 | 30,047 | (82,554 | ) | 263,224 | |||||||||||||||
Total revenue | 78,019 | 1,549,441 | 129,176 | (82,554 | ) | 1,674,082 | |||||||||||||||
Cost of products | — | (449,603 | ) | (52,268 | ) | — | (501,871 | ) | |||||||||||||
Cost of services | (83,982 | ) | (95,776 | ) | (9,693 | ) | 85,044 | (104,407 | ) | ||||||||||||
Total cost of revenue | (83,982 | ) | (545,379 | ) | (61,961 | ) | 85,044 | (606,278 | ) | ||||||||||||
Gross profit | (5,963 | ) | 1,004,062 | 67,215 | 2,490 | 1,067,804 | |||||||||||||||
Operating expenses | — | (677,767 | ) | (47,711 | ) | (2,490 | ) | (727,968 | ) | ||||||||||||
Asset impairment charge | — | (6,468 | ) | — | — | (6,468 | ) | ||||||||||||||
Net loss on sale of facility | — | (735 | ) | — | — | (735 | ) | ||||||||||||||
Operating income | (5,963 | ) | 319,092 | 19,504 | — | 332,633 | |||||||||||||||
Interest expense | (36,368 | ) | (12,157 | ) | — | 11,996 | (36,529 | ) | |||||||||||||
Other income | 9,976 | 2,496 | 601 | (11,996 | ) | 1,077 | |||||||||||||||
(Loss) income before income taxes | (32,355 | ) | 309,431 | 20,105 | — | 297,181 | |||||||||||||||
Income tax benefit (provision) | 17,445 | (109,289 | ) | (5,543 | ) | — | (97,387 | ) | |||||||||||||
(Loss) income before equity in earnings of consolidated subsidiaries | (14,910 | ) | 200,142 | 14,562 | — | 199,794 | |||||||||||||||
Equity in earnings of consolidated subsidiaries | 214,704 | 14,562 | — | (229,266 | ) | — | |||||||||||||||
Net income | $ | 199,794 | $ | 214,704 | $ | 14,562 | $ | (229,266 | ) | $ | 199,794 | ||||||||||
Comprehensive income | $ | 196,880 | $ | 210,756 | $ | 8,398 | $ | (219,154 | ) | $ | 196,880 | ||||||||||
Deluxe Corporation | |||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
(in thousands) | Deluxe Corporation | Guarantor subsidiaries | Non-guarantor subsidiaries | Eliminations | Total | ||||||||||||||||
Product revenue | $ | — | $ | 1,293,257 | $ | 76,454 | $ | — | $ | 1,369,711 | |||||||||||
Service revenue | 9,042 | 188,767 | 34,962 | (17,658 | ) | 215,113 | |||||||||||||||
Total revenue | 9,042 | 1,482,024 | 111,416 | (17,658 | ) | 1,584,824 | |||||||||||||||
Cost of products | — | (429,432 | ) | (34,055 | ) | — | (463,487 | ) | |||||||||||||
Cost of services | (7,597 | ) | (85,693 | ) | (12,532 | ) | 8,193 | (97,629 | ) | ||||||||||||
Total cost of revenue | (7,597 | ) | (515,125 | ) | (46,587 | ) | 8,193 | (561,116 | ) | ||||||||||||
Gross profit | 1,445 | 966,899 | 64,829 | (9,465 | ) | 1,023,708 | |||||||||||||||
Operating expenses | — | (664,218 | ) | (46,041 | ) | 9,465 | (700,794 | ) | |||||||||||||
Asset impairment charge | — | (5,000 | ) | — | — | (5,000 | ) | ||||||||||||||
Operating income | 1,445 | 297,681 | 18,788 | — | 317,914 | ||||||||||||||||
Interest expense | (38,236 | ) | (8,442 | ) | (3 | ) | 8,380 | (38,301 | ) | ||||||||||||
Other income | 7,283 | 2,027 | 516 | (8,380 | ) | 1,446 | |||||||||||||||
(Loss) income before income taxes | (29,508 | ) | 291,266 | 19,301 | — | 281,059 | |||||||||||||||
Income tax benefit (provision) | 16,597 | (105,812 | ) | (5,192 | ) | — | (94,407 | ) | |||||||||||||
(Loss) income before equity in earnings of consolidated subsidiaries | (12,911 | ) | 185,454 | 14,109 | — | 186,652 | |||||||||||||||
Equity in earnings of consolidated subsidiaries | 199,563 | 14,109 | — | (213,672 | ) | — | |||||||||||||||
Net income | $ | 186,652 | $ | 199,563 | $ | 14,109 | $ | (213,672 | ) | $ | 186,652 | ||||||||||
Comprehensive income | $ | 193,875 | $ | 205,595 | $ | 9,862 | $ | (215,457 | ) | $ | 193,875 | ||||||||||
Deluxe Corporation | |||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
(in thousands) | Deluxe Corporation | Guarantor subsidiaries | Non-guarantor subsidiaries | Eliminations | Total | ||||||||||||||||
Product revenue | $ | — | $ | 1,283,471 | $ | 62,458 | $ | — | $ | 1,345,929 | |||||||||||
Service revenue | 8,902 | 150,758 | 26,625 | (17,297 | ) | 168,988 | |||||||||||||||
Total revenue | 8,902 | 1,434,229 | 89,083 | (17,297 | ) | 1,514,917 | |||||||||||||||
Cost of products | — | (422,836 | ) | (24,158 | ) | — | (446,994 | ) | |||||||||||||
Cost of services | (5,637 | ) | (68,339 | ) | (9,042 | ) | 5,637 | (77,381 | ) | ||||||||||||
Total cost of revenue | (5,637 | ) | (491,175 | ) | (33,200 | ) | 5,637 | (524,375 | ) | ||||||||||||
Gross profit | 3,265 | 943,054 | 55,883 | (11,660 | ) | 990,542 | |||||||||||||||
Operating expenses | — | (654,286 | ) | (45,760 | ) | 11,660 | (688,386 | ) | |||||||||||||
Net loss on sale of facility | — | (128 | ) | — | — | (128 | ) | ||||||||||||||
Operating income | 3,265 | 288,640 | 10,123 | — | 302,028 | ||||||||||||||||
Loss on early debt extinguishment | (5,258 | ) | — | — | — | (5,258 | ) | ||||||||||||||
Interest expense | (46,767 | ) | (12,819 | ) | (7 | ) | 12,746 | (46,847 | ) | ||||||||||||
Other income (expense) | 11,721 | (1,341 | ) | 3,196 | (12,746 | ) | 830 | ||||||||||||||
(Loss) income before income taxes | (37,039 | ) | 274,480 | 13,312 | — | 250,753 | |||||||||||||||
Income tax benefit (provision) | 19,690 | (99,674 | ) | (277 | ) | — | (80,261 | ) | |||||||||||||
(Loss) income before equity in earnings of consolidated subsidiaries | (17,349 | ) | 174,806 | 13,035 | — | 170,492 | |||||||||||||||
Equity in earnings of consolidated subsidiaries | 187,841 | 13,035 | — | (200,876 | ) | — | |||||||||||||||
Net income | $ | 170,492 | $ | 187,841 | $ | 13,035 | $ | (200,876 | ) | $ | 170,492 | ||||||||||
Comprehensive income | $ | 189,246 | $ | 205,245 | $ | 13,704 | $ | (218,949 | ) | $ | 189,246 | ||||||||||
Deluxe Corporation | |||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
(in thousands) | Deluxe Corporation | Guarantor subsidiaries | Non-guarantor subsidiaries | Eliminations | Total | ||||||||||||||||
Net cash (used) provided by operating activities | $ | (12,298 | ) | $ | 278,281 | $ | 14,638 | $ | (226 | ) | $ | 280,395 | |||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Purchases of capital assets | (1,269 | ) | (38,118 | ) | (1,732 | ) | — | (41,119 | ) | ||||||||||||
Payments for acquisitions, net of cash acquired | (89,824 | ) | (15,205 | ) | — | — | (105,029 | ) | |||||||||||||
Loans to distributors | — | (50 | ) | — | — | (50 | ) | ||||||||||||||
Proceeds from company-owned life insurance policies | 897 | — | — | — | 897 | ||||||||||||||||
Proceeds from sale of facility | — | 8,451 | — | — | 8,451 | ||||||||||||||||
Other | (432 | ) | 1,225 | 14 | — | 807 | |||||||||||||||
Net cash used by investing activities | (90,628 | ) | (43,697 | ) | (1,718 | ) | — | (136,043 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Net proceeds from short-term borrowings | 160,000 | (125 | ) | — | — | 159,875 | |||||||||||||||
Payments on long-term debt, including costs of debt reacquisition | (254,376 | ) | (20 | ) | (7 | ) | — | (254,403 | ) | ||||||||||||
Payments for debt issue costs | (1,085 | ) | — | — | — | (1,085 | ) | ||||||||||||||
Proceeds from issuing shares under employee plans | 9,148 | — | — | — | 9,148 | ||||||||||||||||
Excess tax benefit from share-based employee awards | 4,992 | — | — | — | 4,992 | ||||||||||||||||
Payments for common shares repurchased | (60,119 | ) | — | — | — | (60,119 | ) | ||||||||||||||
Cash dividends paid to shareholders | (57,603 | ) | — | — | — | (57,603 | ) | ||||||||||||||
Advances from (to) consolidated subsidiaries | 238,332 | (236,938 | ) | (1,394 | ) | — | — | ||||||||||||||
Other | — | (150 | ) | — | — | (150 | ) | ||||||||||||||
Net cash provided (used) by financing activities | 39,289 | (237,233 | ) | (1,401 | ) | — | (199,345 | ) | |||||||||||||
Effect of exchange rate change on cash | — | — | (4,555 | ) | — | (4,555 | ) | ||||||||||||||
Net change in cash and cash equivalents | (63,637 | ) | (2,649 | ) | 6,964 | (226 | ) | (59,548 | ) | ||||||||||||
Cash and cash equivalents, beginning of year | 71,972 | 6,991 | 45,229 | (3,103 | ) | 121,089 | |||||||||||||||
Cash and cash equivalents, end of year | $ | 8,335 | $ | 4,342 | $ | 52,193 | $ | (3,329 | ) | $ | 61,541 | ||||||||||
Deluxe Corporation | |||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
(in thousands) | Deluxe Corporation | Guarantor subsidiaries | Non-guarantor subsidiaries | Eliminations | Total | ||||||||||||||||
Net cash (used) provided by operating activities | $ | (7,462 | ) | $ | 243,906 | $ | 24,160 | $ | 898 | $ | 261,502 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Purchases of capital assets | — | (32,659 | ) | (4,800 | ) | — | (37,459 | ) | |||||||||||||
Payments for acquisitions, net of cash acquired | — | (69,709 | ) | — | — | (69,709 | ) | ||||||||||||||
Loans to distributors | — | (778 | ) | — | — | (778 | ) | ||||||||||||||
Proceeds from company-owned life insurance policies | 3,641 | 958 | — | — | 4,599 | ||||||||||||||||
Other | 1,181 | 1,104 | 12 | — | 2,297 | ||||||||||||||||
Net cash provided (used) by investing activities | 4,822 | (101,084 | ) | (4,788 | ) | — | (101,050 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Payments on long-term debt, including costs of debt reacquisition | (224 | ) | — | (1,331 | ) | — | (1,555 | ) | |||||||||||||
Payments for debt issue costs | (236 | ) | — | — | — | (236 | ) | ||||||||||||||
Proceeds from issuing shares under employee plans | 15,948 | — | — | — | 15,948 | ||||||||||||||||
Excess tax benefit from share-based employee awards | 3,055 | — | — | — | 3,055 | ||||||||||||||||
Payments for common shares repurchased | (48,798 | ) | — | — | — | (48,798 | ) | ||||||||||||||
Cash dividends paid to shareholders | (50,711 | ) | — | — | — | (50,711 | ) | ||||||||||||||
Advances from (to) consolidated subsidiaries | 140,716 | (139,059 | ) | (1,657 | ) | — | — | ||||||||||||||
Net cash provided (used) by financing activities | 59,750 | (139,059 | ) | (2,988 | ) | — | (82,297 | ) | |||||||||||||
Effect of exchange rate change on cash | — | — | (2,501 | ) | — | (2,501 | ) | ||||||||||||||
Net change in cash and cash equivalents | 57,110 | 3,763 | 13,883 | 898 | 75,654 | ||||||||||||||||
Cash and cash equivalents, beginning of year | 14,862 | 3,228 | 31,346 | (4,001 | ) | 45,435 | |||||||||||||||
Cash and cash equivalents, end of year | $ | 71,972 | $ | 6,991 | $ | 45,229 | $ | (3,103 | ) | $ | 121,089 | ||||||||||
Deluxe Corporation | |||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
(in thousands) | Deluxe Corporation | Guarantor subsidiaries | Non-guarantor subsidiaries | Eliminations | Total | ||||||||||||||||
Net cash (used) provided by operating activities | $ | (10,325 | ) | $ | 244,091 | $ | 10,311 | $ | — | $ | 244,077 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Purchases of capital assets | — | (31,561 | ) | (3,632 | ) | — | (35,193 | ) | |||||||||||||
Payments for acquisitions, net of cash acquired | — | (34,172 | ) | — | — | (34,172 | ) | ||||||||||||||
Loans to distributors | — | (3,227 | ) | (60 | ) | — | (3,287 | ) | |||||||||||||
Proceeds from sale of facility | — | 2,613 | — | — | 2,613 | ||||||||||||||||
Other | 379 | 1,162 | (15 | ) | — | 1,526 | |||||||||||||||
Net cash provided (used) by investing activities | 379 | (65,185 | ) | (3,707 | ) | — | (68,513 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Payments on long-term debt, including costs of debt reacquisition | (288,938 | ) | — | — | — | (288,938 | ) | ||||||||||||||
Proceeds from issuing long-term debt | 200,000 | — | — | — | 200,000 | ||||||||||||||||
Payments for debt issue costs | (4,504 | ) | — | — | — | (4,504 | ) | ||||||||||||||
Change in book overdrafts | (2,426 | ) | 3,827 | — | (4,001 | ) | (2,600 | ) | |||||||||||||
Proceeds from issuing shares under employee plans | 12,320 | — | — | — | 12,320 | ||||||||||||||||
Excess tax benefit from share-based employee awards | 2,285 | — | — | — | 2,285 | ||||||||||||||||
Payments for common shares repurchased | (27,155 | ) | — | — | — | (27,155 | ) | ||||||||||||||
Cash dividends paid to shareholders | (50,918 | ) | — | — | — | (50,918 | ) | ||||||||||||||
Advances from (to) consolidated subsidiaries | 181,097 | (181,166 | ) | 69 | — | — | |||||||||||||||
Net cash provided (used) by financing activities | 21,761 | (177,339 | ) | 69 | (4,001 | ) | (159,510 | ) | |||||||||||||
Effect of exchange rate change on cash | — | — | 694 | — | 694 | ||||||||||||||||
Net change in cash and cash equivalents | 11,815 | 1,567 | 7,367 | (4,001 | ) | 16,748 | |||||||||||||||
Cash and cash equivalents, beginning of year | 3,047 | 1,661 | 23,979 | — | 28,687 | ||||||||||||||||
Cash and cash equivalents, end of year | $ | 14,862 | $ | 3,228 | $ | 31,346 | $ | (4,001 | ) | $ | 45,435 | ||||||||||
Subsequent_events
Subsequent events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events |
In January 2015, we announced our intention to redeem all $200,000 of our 7.0% senior notes due in March 2019. We plan to redeem the notes on March 16, 2015, and the redemption will generate a loss on early debt extinguishment during the first quarter of 2015 due to a contractual call premium and related fees. The redemption will be financed primarily with our existing credit facility and the issuance of a short-term bank loan. | |
In January 2015, we decided that two company-owned small business distributors will no longer be managed as part of our Small Business Services segment. Because their customers consist primarily of financial institutions, we determined that the businesses would be better positioned for long-term growth if they were managed as part of our Financial Services segment. As such, the results of operations of these businesses will be included in Financial Services beginning in 2015. Our business segment results for previous periods will be restated in 2015 to reflect this change. These businesses generated revenue of $22,745 during 2014, $13,982 during 2013 and $10,251 during 2012. |
SUMMARIZED_QUARTERLY_FINANCIAL
SUMMARIZED QUARTERLY FINANCIAL DATA (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||
Summarized Quarterly Financial Data (Unaudited) | DELUXE CORPORATION | ||||||||||||||||
SUMMARIZED QUARTERLY FINANCIAL DATA (Unaudited) | |||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
2014 Quarter Ended | |||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
Total revenue | $ | 406,955 | $ | 405,410 | $ | 413,204 | $ | 448,513 | |||||||||
Gross profit | 262,027 | 259,519 | 263,054 | 283,204 | |||||||||||||
Net income | 47,324 | 50,076 | 44,431 | 57,963 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | 0.94 | 1 | 0.89 | 1.16 | |||||||||||||
Diluted | 0.93 | 0.99 | 0.88 | 1.16 | |||||||||||||
Cash dividends per share | 0.25 | 0.3 | 0.3 | 0.3 | |||||||||||||
2013 Quarter Ended | |||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
Total revenue | $ | 387,553 | $ | 381,433 | $ | 398,080 | $ | 417,758 | |||||||||
Gross profit | 254,256 | 247,886 | 255,857 | 265,709 | |||||||||||||
Net income | 45,875 | 48,152 | 46,903 | 45,722 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | 0.9 | 0.95 | 0.93 | 0.9 | |||||||||||||
Diluted | 0.89 | 0.94 | 0.92 | 0.9 | |||||||||||||
Cash dividends per share | 0.25 | 0.25 | 0.25 | 0.25 | |||||||||||||
Significant items affecting the comparability of quarterly results were as follows: | |||||||||||||||||
• | First quarter 2014 – net pre-tax restructuring charges of $3,532 related to our cost reduction initiatives. | ||||||||||||||||
• | Third quarter 2014 – net pre-tax restructuring charges of $4,355 related to our cost reduction initiatives and a $6,468 pre-tax asset impairment charge related to Small Business Services intangible assets. | ||||||||||||||||
• | Fourth quarter 2014 – a reduction of $2,282 in income tax expense for discrete items, primarily prior year state income tax credits. | ||||||||||||||||
• | First quarter 2013 – net pre-tax restructuring charges of $1,449 related to our cost reduction initiatives. | ||||||||||||||||
• | Second quarter 2013 – net pre-tax restructuring charges of $1,051 related to our cost reduction initiatives. | ||||||||||||||||
• | Third quarter 2013 – net pre-tax restructuring charges of $3,079 related to our cost reduction initiatives. | ||||||||||||||||
• | Fourth quarter 2013 – net pre-tax restructuring charges of $5,327 related to our cost reduction initiatives and a $5,000 pre-tax asset impairment charge related to a Small Business Services customer relationship intangible asset. |
Significant_accounting_policie1
Significant accounting policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Nature of operations | Nature of operations – We employ a multi-channel strategy to provide a suite of life-cycle driven solutions to our customers. We offer a wide range of products and services to small businesses, including customized checks and forms, as well as website development and hosting, search engine marketing, search engine optimization, and logo design. For financial institutions, we offer industry-leading programs in checks, customer acquisition and loyalty, fraud prevention and profitability, and financial technology solutions, including receivables management. We are also a leading printer of checks and accessories sold directly to consumers. | |
Consolidation | Consolidation – The consolidated financial statements include the accounts of Deluxe Corporation and its wholly-owned subsidiaries. All intercompany accounts, transactions and profits have been eliminated. | |
Use of estimates | Use of estimates – We have prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. In this process, it is necessary for us to make certain assumptions and estimates affecting the amounts reported in the consolidated financial statements and related notes. These estimates and assumptions are developed based upon all available information. However, actual results can differ from assumed and estimated amounts. | |
Foreign currency translation | Foreign currency translation – The financial statements of our foreign subsidiaries are measured in the respective subsidiaries' functional currencies, primarily Canadian dollars, and are translated into U.S. dollars. Assets and liabilities are translated using the exchange rates in effect at the balance sheet date. Revenue and expenses are translated at the average exchange rates during the year. The resulting translation gains and losses are reflected in accumulated other comprehensive loss in the shareholders' equity section of the consolidated balance sheets. Foreign currency transaction gains and losses are recorded in other income in the consolidated statements of income. | |
Cash and cash equivalents | Cash and cash equivalents – We consider all cash on hand and other highly liquid investments with original maturities of three months or less to be cash and cash equivalents. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate fair value. | |
Marketable securities | Marketable securities – Marketable securities consist of a Canadian money market fund, which is classified as available for sale. The investment is carried at fair value and is included within other current assets in the consolidated balance sheets. Because of the short-term nature of the underlying investments, the cost of these securities approximates their fair value. The cost of securities sold is determined using the average cost method. | |
Trade accounts receivable | Trade accounts receivable – Trade accounts receivable are initially recorded at fair value upon the sale of goods or services to customers. They are stated net of allowances for uncollectible accounts, which represent estimated losses resulting from the inability of customers to make the required payments. When determining the allowances for uncollectible accounts, we take several factors into consideration, including the overall composition of accounts receivable aging, our prior history of accounts receivable write-offs, the type of customer and our day-to-day knowledge of specific customers. Changes in the allowances for uncollectible accounts are included in selling, general and administrative (SG&A) expense in our consolidated statements of income. The point at which uncollected accounts are written off varies by type of customer, but generally does not exceed one year from the due date of the receivable. | |
Inventories and supplies | Inventories and supplies – Inventories and supplies are stated at the lower of average cost or market. Average cost approximates cost calculated on a first-in, first-out basis. Supplies consist of items not used directly in the production of goods, such as maintenance and other supplies utilized in the production area. | |
Funds held for customers | Funds held for customers – Our Canadian payroll services business collects funds from clients to pay their payroll and related taxes. We hold these funds temporarily until payments are remitted to the clients' employees and the appropriate taxing authorities. These funds, consisting of cash and available-for-sale marketable securities, are reported as funds held for customers in the consolidated balance sheets. The corresponding liability for these obligations is included in accrued liabilities in the consolidated balance sheets. The available-for-sale marketable securities are carried at fair value, with unrealized gains and losses included in accumulated other comprehensive loss in the consolidated balance sheets. Realized gains and losses are included in revenue in our consolidated statements of income. Realized gains recognized during 2012 were $327. Amounts recognized during 2014 and 2013 were not significant. | |
Long-term investments | Long-term investments – Long-term investments consist primarily of cash surrender values of life insurance contracts. Additionally, long-term investments include an investment in domestic mutual funds with a fair value of $2,384 as of December 31, 2014 and $2,407 as of December 31, 2013. We have elected to account for this investment under the fair value option for financial assets and financial liabilities. The fair value option provides companies an irrevocable option to measure many financial assets and liabilities at fair value with changes in fair value recognized in earnings. Realized and unrealized gains and losses, as well as dividends earned by the mutual fund investment, are included in SG&A expense in the consolidated statements of income. This investment corresponds to a liability under an officers' deferred compensation plan which is not available to new participants and is fully funded by the investment in mutual funds. The liability under the plan equals the fair value of the investment in mutual funds. Thus, as the value of the investment changes, the value of the liability changes accordingly. As changes in the liability are reflected within SG&A expense in the consolidated statements of income, the fair value option of accounting for the investment in mutual funds allows us to net changes in the investment and the related liability in the consolidated statements of income. The cost of securities sold is determined using the average cost method. | |
Property, plant and equipment | Property, plant and equipment – Property, plant and equipment, including leasehold and other improvements that extend an asset's useful life or productive capabilities, are stated at historical cost. Buildings have been assigned lives of 40 years and machinery and equipment are generally assigned lives ranging from one year to 11 years, with a weighted-average life of eight years as of December 31, 2014. Buildings are depreciated using the 150% declining balance method, and machinery and equipment are depreciated using the sum-of-the-years' digits method. Leasehold and building improvements are depreciated on the straight-line basis over the estimated useful life of the property or the life of the lease, whichever is shorter. Maintenance and repairs are expensed as incurred. | |
Fully depreciated assets are retained in property, plant and equipment until disposal. Any gains or losses resulting from the disposition of property, plant and equipment are included in SG&A expense in the consolidated statements of income, with the exception of building sales. Such gains and losses are reported separately in the consolidated statements of income. | ||
Intangibles | Intangibles – Intangible assets are stated at historical cost. Amortization expense is generally determined on the straight-line basis over periods ranging from one year to 20 years, with a weighted-average life of six years as of December 31, 2014. Customer lists are generally amortized using accelerated methods which reflect the pattern in which we receive the economic benefit of the asset. Each reporting period, we evaluate the remaining useful lives of our amortizable intangibles to determine whether events or circumstances warrant a revision to the remaining period of amortization. If our estimate of an asset's remaining useful life is revised, the remaining carrying amount of the asset is amortized prospectively over the revised remaining useful life. As of December 31, 2014, we held a trade name asset which has been assigned an indefinite useful life. As such, this asset is not amortized, but is subject to impairment testing on at least an annual basis. Any gains or losses resulting from the disposition of intangibles are included in SG&A expense in the consolidated statements of income. | |
We capitalize costs of software developed or obtained for internal use, including website development costs, once the preliminary project stage has been completed, management commits to funding the project and it is probable that the project will be completed and the software will be used to perform the function intended. Capitalized costs include only (1) external direct costs of materials and services consumed in developing or obtaining internal-use software, (2) payroll and payroll-related costs for employees who are directly associated with and who devote time to the internal-use software project, and (3) interest costs incurred, when significant, while developing internal-use software. Costs incurred in populating websites with information about the company or products are expensed as incurred. Capitalization of costs ceases when the project is substantially complete and ready for its intended use. The carrying value of internal-use software is reviewed in accordance with our policy on impairment of long-lived assets and amortizable intangibles. | ||
We incur costs in connection with the development of certain software products which we sell to our customers. Costs for the development of software products to be sold are expensed as incurred until technological feasibility is established, at which time, such costs are capitalized until the product is available for general release to customers. We acquired software to be sold via the acquisition of Wausau Financial Systems, Inc. (WFS) in October 2014 (Note 5). | ||
Impairment of long-lived assets and amortizable intangibles | Impairment of long-lived assets and amortizable intangibles – We evaluate the recoverability of property, plant, equipment and amortizable intangibles not held for sale whenever events or changes in circumstances indicate that an asset's carrying amount may not be recoverable. Such circumstances could include, but are not limited to, (1) a significant decrease in the market value of an asset, (2) a significant adverse change in the extent or manner in which an asset is used or in its physical condition, or (3) an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of an asset. We compare the carrying amount of the asset to the estimated undiscounted future cash flows associated with it. If the sum of the expected future net cash flows is less than the carrying value of the asset being evaluated, an impairment loss would be recognized. The impairment loss would be calculated as the amount by which the carrying value of the asset exceeds the fair value of the asset. As quoted market prices are not available for the majority of our assets, the estimate of fair value is based on various valuation techniques, including the discounted value of estimated future cash flows. During 2014 and 2013, we recorded asset impairment charges related to Small Business Services intangible assets. Further information regarding the impairment charges can be found in Note 7: Fair value measurements. | |
We evaluate the recoverability of property, plant, equipment and intangibles held for sale by comparing the asset's carrying amount with its fair value less costs to sell. Should the fair value less costs to sell be less than the carrying value of the long-lived asset, an impairment loss would be recognized. The impairment loss would be calculated as the amount by which the carrying value of the asset exceeds the fair value of the asset less costs to sell. | ||
The evaluation of asset impairment requires us to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. | ||
Impairment of indefinite-lived intangibles and goodwill | Impairment of indefinite-lived intangibles and goodwill – We evaluate the carrying value of indefinite-lived intangibles and goodwill on July 31st of each year and between annual evaluations if events occur or circumstances change that would indicate a possible impairment. Such circumstances could include, but are not limited to, (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, (3) an adverse action or assessment by a regulator, or (4) an adverse change in market conditions which are indicative of a decline in the fair value of the assets. | |
In completing the annual impairment analysis of our indefinite-lived trade name during the past three years, we elected to perform a quantitative assessment. This assessment compares the carrying amount of the asset to its estimated fair value. The estimate of fair value is based on a relief from royalty method, which calculates the cost savings associated with owning rather than licensing the trade name. An assumed royalty rate is applied to forecasted revenue and the resulting cash flows are discounted. If the estimated fair value is less than the carrying value of the asset, an impairment loss would be recognized for the difference. The impairment analyses completed during the past three years indicated no impairment. In addition to the required impairment analysis, we regularly evaluate the remaining useful life of this asset to determine whether events and circumstances continue to support an indefinite useful life. If we were to determine that the asset has a finite useful life, we would test it for impairment and then amortize its remaining carrying value over its estimated remaining useful life. | ||
In completing our 2014 annual goodwill impairment analysis, we elected to perform a quantitative assessment for all of our reporting units to which goodwill is assigned, as our previous quantitative analysis was completed during 2010. First, we calculated the estimated fair value of each reporting unit to which goodwill is assigned and compared this estimated fair value to the carrying amount of the reporting unit's net assets. In calculating the estimated fair value, we used the income approach. The income approach is a valuation technique under which we estimated future cash flows using the reporting unit's financial forecast from the perspective of an unrelated market participant. Using historical trending and internal forecasting techniques, we projected revenue for the next five years. We applied our fixed and variable cost experience rates to the projected revenue to arrive at the future cash flows. A terminal value was then applied to the projected cash flow stream. Future estimated cash flows were discounted to their present value to calculate the estimated fair value. The discount rate used was the value-weighted average of our estimated cost of capital derived using both known and customary market metrics. In determining the estimated fair values of our reporting units, we were required to estimate a number of factors, including projected operating results, terminal growth rates, economic conditions, anticipated future cash flows, the discount rate and the allocation of shared or corporate items. For reasonableness, the summation of our reporting units' fair values was compared to our consolidated fair value as indicated by our market capitalization. If the carrying amount of a reporting unit's net assets exceeds its estimated fair value, the second step of the goodwill impairment analysis requires us to measure the amount of the impairment loss. An impairment loss is calculated by comparing the implied fair value of the goodwill to its carrying amount. To calculate the implied fair value of goodwill, the fair value of the reporting unit's assets and liabilities, excluding goodwill, is estimated. The excess of the fair value of the reporting unit over the amount assigned to its assets and liabilities, excluding goodwill, is the implied fair value of the reporting unit's goodwill. We were not required to complete the second step of the goodwill impairment analysis for any of our reporting units, and no goodwill impairment charges were recorded during 2014. Further information regarding this analysis can be found in Note 7: Fair value measurements. | ||
When completing our annual goodwill impairment analysis, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after this qualitative assessment, we determine it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step, quantitative impairment test is unnecessary. During 2013 and 2012, we elected to perform a qualitative assessment for all of our reporting units to which goodwill is assigned. We noted no changes in events or circumstances which would have required us to complete the two-step quantitative goodwill impairment analysis for any of our reporting units. As such, no goodwill impairment charges were recorded as a result of our 2013 or 2012 annual impairment analyses. | ||
Contract acquisition costs | Contract acquisition costs – We record contract acquisition costs when we sign or renew certain contracts with our financial institution clients. These costs, which are essentially pre-paid product discounts, consist of cash payments or accruals related to amounts owed to financial institution clients by our Financial Services segment. Contract acquisition costs are amortized as reductions of revenue over the related contract term, generally on the straight-line basis. Currently, these amounts are being amortized over periods ranging from one year to 10 years, with a weighted-average life of six years as of December 31, 2014. Whenever events or changes occur that impact the related contract, including significant declines in the anticipated profitability, we evaluate the carrying value of the contract acquisition costs to determine if impairment has occurred. Should a financial institution cancel a contract prior to the agreement's termination date, or should the volume of orders realized through a financial institution fall below contractually-specified minimums, we generally have a contractual right to a refund of the remaining unamortized contract acquisition costs. These costs are included in other non-current assets in the consolidated balance sheets. | |
Advertising costs | Advertising costs – Deferred advertising costs include materials, printing, labor and postage costs related to direct response advertising programs of our Direct Checks and Small Business Services segments. These costs are amortized as SG&A expense over periods (not exceeding 18 months) that correspond to the estimated revenue streams of the individual advertisements. The actual revenue streams are analyzed at least annually to monitor the propriety of the amortization periods. Judgment is required in estimating the future revenue streams, especially with regard to check re-orders which can span an extended period of time. Significant changes in the actual revenue streams would require the amortization periods to be modified, thus impacting our results of operations during the period in which the change occurred and in subsequent periods. Within our Direct Checks segment, approximately 82% of the costs of individual advertisements is expensed within six months of the advertisement. The deferred advertising costs of our Small Business Services segment are fully amortized within six months of the advertisement. Deferred advertising costs are included in other current assets and other non-current assets in the consolidated balance sheets. | |
Non-direct response advertising projects are expensed as incurred. Catalogs provided to financial institution clients of our Financial Services segment are accounted for as prepaid assets until they are shipped to financial institutions. The total amount of advertising expense was $91,937 in 2014, $93,872 in 2013 and $100,594 in 2012. | ||
Loans to distributors | Loans to distributors – We, at times, make loans to certain of our Safeguard® distributors to allow them to purchase the operations of other small business distributors. These loans are included in other current assets and other non-current assets in the consolidated balance sheets. Interest is accrued at market interest rates as earned. As of December 31, 2014 and December 31, 2013, no amounts were past due and allowances for credit losses related to these receivables were not significant. | |
Restructuring charges | Restructuring charges – Over the past several years, we have recorded restructuring charges as a result of various cost management efforts, including facility closings, the relocation of business activities, and fundamental changes in the manner in which certain business functions are conducted. These charges have consisted primarily of accruals for employee termination benefits payable under our ongoing severance benefit plan. We record accruals for employee termination benefits when it is probable that a liability has been incurred and the amount of the liability is reasonably estimable. As such, judgment is involved in determining when it is appropriate to record restructuring accruals. Additionally, we are required to make estimates and assumptions in calculating the restructuring accruals as, on some occasions, employees choose to voluntarily leave the company prior to their termination date or they secure another position within the company. In these situations, the employees do not receive termination benefits. To the extent our assumptions and estimates differ from our actual costs, subsequent adjustments to restructuring accruals have been and will be required. Restructuring accruals are included in accrued liabilities and other non-current liabilities in our consolidated balance sheets. In addition to employee termination benefits, we also typically incur other costs related to restructuring activities including, but not limited to, information technology costs, employee and equipment moves, training and travel. These costs are expensed as incurred. | |
Litigation | Litigation – We are party to legal actions and claims arising in the ordinary course of business. We record accruals for legal matters when the expected outcome of these matters is either known or considered probable and can be reasonably estimated. Our accruals do not include related legal and other costs expected to be incurred in defense of legal actions. Based upon information presently available, we believe that it is unlikely that any identified matters, either individually or in the aggregate, will have a material adverse effect on our annual results of operations, financial position or liquidity upon resolution. | |
Income taxes | Income taxes – Deferred income taxes result from temporary differences between the financial reporting basis of assets and liabilities and their respective tax reporting bases. Current deferred tax assets and liabilities are netted by jurisdiction in the consolidated balance sheets, as are long-term deferred tax assets and liabilities. Net deferred tax assets are recognized to the extent that realization of such benefits is more likely than not. | |
We are subject to tax audits in numerous domestic and foreign tax jurisdictions. Tax audits are often complex and can require several years to complete. In the normal course of business, we are subject to challenges from the Internal Revenue Service and other tax authorities regarding the amount of taxes due. These challenges may alter the timing or amount of taxable income or deductions, or the allocation of income among tax jurisdictions. We recognize the benefits of tax return positions in the financial statements when they are more-likely-than-not to be sustained by the taxing authorities based solely on the technical merits of the position. If the recognition threshold is met, the tax benefit is measured and recognized as the largest amount of tax benefit that, in our judgment, is greater than 50% likely to be realized. Accrued interest and penalties related to unrecognized tax positions is included in our provision for income taxes in the consolidated statements of income. | ||
Derivative financial instruments | Derivative financial instruments – Information regarding our derivative financial instruments is included in Note 6. We do not use derivative financial instruments for speculative or trading purposes. Our policy is that all derivative transactions must be linked to an existing balance sheet item or firm commitment, and the notional amount cannot exceed the value of the exposure being hedged. | |
We recognize all derivative financial instruments in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. They are included in either current or non-current assets or liabilities in the consolidated balance sheets based on their maturity. Changes in the fair value of derivative financial instruments are recognized periodically either in income or in shareholders' equity as a component of accumulated other comprehensive loss, depending on whether the derivative financial instrument qualifies for hedge accounting, and if so, whether it qualifies as a fair value hedge or a cash flow hedge and whether the hedge is effective. Generally, changes in fair values of derivatives accounted for as fair value hedges are recorded in income along with the portion of the change in the fair value of the hedged items that relate to the hedged risk. Changes in fair values of derivatives accounted for as cash flow hedges, to the extent they are effective as hedges, are recorded in accumulated other comprehensive loss, net of tax. We classify the cash flows from derivative instruments that have been designated as fair value or cash flow hedges in the same category as the cash flows from the items being hedged. Changes in fair values of derivatives not qualifying as hedges and the ineffective portion of hedges are reported in income. | ||
Revenue recognition | Revenue recognition – We recognize revenue when (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the sales price is fixed or determinable, and (4) collectibility is reasonably assured. The majority of our revenues are generated from the sale of products for which revenue is recognized upon shipment or customer receipt, based upon the transfer of title. Our services, which account for the remainder of our revenue, consist primarily of web design, hosting and other web services; fraud prevention; marketing services, including email, mobile, social media and other self-service marketing solutions; financial institution customer acquisition and loyalty programs; financial technology solutions; payroll services; and logo design. We recognize the majority of these service revenues as the services are provided. In some situations, our web hosting and applications services are billed on a quarterly, semi-annual or annual basis. When a customer pays in advance for services, we defer the revenue and recognize it as the services are performed. Up-front set-up fees related to our web hosting, applications services and outsourcing services are deferred and recognized as revenue on the straight-line basis over the term of the customer relationship. Deferred revenue is included in accrued liabilities in the consolidated balance sheets. | |
A portion of the revenue generated by WFS, which was acquired in October 2014 (Note 5), results from the sale of bundled arrangements which may include hardware, software and professional services. We recognize revenues from these contracts using the percentage-of-completion method of accounting, which involves calculating the percentage of services provided during the reporting period compared with the total estimated services to be provided over the duration of the contract. We record costs and earnings in excess of billings on uncompleted contracts within other current assets and billings in excess of costs and earnings on uncompleted contracts within other current liabilities in the consolidated balance sheets. The amount included in other current assets related to these contracts was $8,407 as of December 31, 2014, and the amount included in other current liabilities related to these contracts was $708 as of December 31, 2014. | ||
Revenue includes amounts billed to customers for shipping and handling and pass-through costs, such as marketing materials for which our financial institution clients reimburse us. Costs incurred for shipping and handling and pass-through costs are reflected in cost of products. For sales with a right of return, we record a reserve for estimated sales returns based on significant historical experience. | ||
At times, a financial institution client may terminate its contract with us prior to the end of the contract term. In substantially all of these cases, the financial institution is contractually required to remit a contract termination payment. Such payments are recorded as revenue when the termination agreement is executed, provided that we have no further service or contractual obligations, and collection of the funds is assured. If we have a continuing service obligation following the execution of a contract termination agreement, we record the related revenue over the remaining service period. | ||
Revenue is presented in the consolidated statements of income net of rebates, discounts, amortization of contract acquisition costs, and sales tax. We enter into contractual agreements with financial institution clients for rebates on certain products we sell. We record these amounts as reductions of revenue in the consolidated statements of income and as accrued liabilities in the consolidated balance sheets when the related revenue is recorded. At times we may also sell products at discounted prices or provide free products to customers when they purchase a specified product. Discounts are recorded as reductions of revenue when the related revenue is recorded. The cost of free products is recorded as cost of products when the revenue for the related purchased product is recorded. Reported revenue for our Financial Services segment does not reflect the full retail price paid by end-consumers to their financial institutions. Instead, revenue reflects the amounts paid to us by our financial institution clients. | ||
Employee share-based compensation | Employee share-based compensation – Our share-based compensation consists of non-qualified stock options, restricted stock units, restricted stock and an employee stock purchase plan. Additionally, in 2014 we granted performance share awards. Employee share-based compensation expense is included in total cost of revenue and in SG&A expense in our consolidated statements of income, based on the functional areas of the employees receiving the awards, and is recognized as follows: | |
• | The fair value of stock options is measured on the grant date using the Black-Scholes option pricing model. The related compensation expense is recognized on the straight-line basis, net of estimated forfeitures, over the options' vesting periods. | |
• | The fair value of restricted stock and a portion of our restricted stock unit awards is measured on the grant date based on the market value of our common stock. The related compensation expense, net of estimated forfeitures, is recognized over the applicable service period. | |
• | Certain of our restricted stock unit awards may be settled in cash if an employee voluntarily chooses to leave the company. These awards are included in accrued liabilities and other non-current liabilities in the consolidated balance sheets and are re-measured at fair value as of each balance sheet date. | |
• | Compensation expense resulting from the 15% discount provided under our employee stock purchase plan is recognized over the purchase period of six months. | |
• | The performance share awards specify certain performance/market-based conditions which must be achieved in order for the awards to vest. For the portion of the awards based on a performance condition, the performance target is not considered in determining the fair value of the awards and thus, fair value is measured on the grant date based on the market value of our common stock. The related compensation expense for this type of award is recognized, net of estimated forfeitures, over the related service period. The amount of compensation expense is dependent on our periodic assessment of the probability of the targets being achieved and our estimate, which may vary over time, of the number of shares that ultimately will be issued. For the portion of the awards based on a market condition, fair value is calculated on the grant date using the Monte Carlo simulation model. All compensation cost for these awards is recognized, net of estimated forfeitures, over the related service period, even if the market condition is never satisfied. | |
Earnings per share | Earnings per share – Basic earnings per share is based on the weighted-average number of common shares outstanding during the year. Diluted earnings per share is based on the weighted-average number of common shares outstanding during the year, adjusted to give effect to potential common shares such as stock options and shares to be issued under our employee stock purchase plan. When determining the denominator for the diluted earnings per share calculation under the treasury stock method, we exclude from assumed proceeds the impact of pro forma deferred tax assets. We calculate earnings per share using the two-class method as we have unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalent payments. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. | |
Comprehensive income | Comprehensive income – Comprehensive income includes charges and credits to shareholders' equity that are not the result of transactions with shareholders. Our total comprehensive income consists of net income, gains and losses on derivative instruments, changes in the funded status and amortization of amounts related to our postretirement benefit plans, unrealized gains and losses on available-for-sale marketable securities, and foreign currency translation adjustments. The items of comprehensive income, with the exception of net income, are included in accumulated other comprehensive loss in the consolidated balance sheets and statements of shareholders' equity. | |
Recently adopted accounting pronouncements and accounting pronouncements not yet adopted | Recently adopted accounting pronouncements – On January 1, 2014, we adopted Accounting Standards Update (ASU) No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This standard provides guidance regarding when an unrecognized tax benefit should be classified as a reduction to a deferred tax asset or when it should be classified as a liability in the consolidated balance sheet. Adoption of this standard resulted in an increase of $669 in non-current deferred income tax liabilities and a corresponding decrease in other non-current liabilities. | |
Accounting pronouncements not yet adopted – In April 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This standard changes the criteria for determining which disposals should be presented as discontinued operations and modifies the related disclosure requirements. Additionally, the new guidance requires that a business which qualifies as held for sale upon acquisition should be reported as discontinued operations. We adopted the new guidance on January 1, 2015, and it is applied prospectively. As such, we will apply this standard to any new disposals or new classifications of disposal groups as held for sale which occur on or after January 1, 2015. | ||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The new standard provides revenue recognition guidance for any entity that enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets, unless those contracts are within the scope of other accounting standards. The new standard also expands the required financial statement disclosures regarding revenue recognition. The new guidance is effective for us on January 1, 2017. We are currently assessing the impact of this new standard on our consolidated financial statements, as well as the method of transition that we will use in adopting the new standard. | ||
In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The new standard requires that a performance target that affects vesting and that could be achieved after the requisite service period should be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. The new guidance is effective for us on January 1, 2016. We currently have share-based payment awards that fall within the scope of this standard. Our current accounting treatment is in compliance with the new standard, so we expect no impact on our consolidated financial statements. |
Fair_value_measurements_Polici
Fair value measurements (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |
Fair value level transfers, recurring fair value measurements | Our policy is to recognize transfers between fair value levels as of the end of the reporting period in which the transfer occurred. |
Postretirement_benefits_Polici
Postretirement benefits (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Fair value level transfers, postretirement benefit plan | Our policy is to recognize transfers between fair value levels as of the end of the reporting period in which the transfer occurred. |
Supplemental_balance_sheet_and1
Supplemental balance sheet and cash flow information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Supplemental balance sheet and cash flow information [Abstract] | |||||||||||||||||||||||||
Trade accounts receivable and changes in allowances for uncollectible accounts | Trade accounts receivable – Net trade accounts receivable was comprised of the following at December 31: | ||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Trade accounts receivable – gross | $ | 117,991 | $ | 91,910 | |||||||||||||||||||||
Allowances for uncollectible accounts | (4,335 | ) | (3,861 | ) | |||||||||||||||||||||
Trade accounts receivable – net | $ | 113,656 | $ | 88,049 | |||||||||||||||||||||
Changes in the allowances for uncollectible accounts for the years ended December 31 were as follows: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Balance, beginning of year | $ | 3,861 | $ | 3,912 | $ | 4,007 | |||||||||||||||||||
Bad debt expense | 3,994 | 3,722 | 3,749 | ||||||||||||||||||||||
Write-offs, net of recoveries | (3,520 | ) | (3,773 | ) | (3,844 | ) | |||||||||||||||||||
Balance, end of year | $ | 4,335 | $ | 3,861 | $ | 3,912 | |||||||||||||||||||
Inventories and supplies | Inventories and supplies – Inventories and supplies were comprised of the following at December 31: | ||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Raw materials | $ | 5,899 | $ | 5,426 | |||||||||||||||||||||
Semi-finished goods | 8,990 | 8,361 | |||||||||||||||||||||||
Finished goods | 21,298 | 11,948 | |||||||||||||||||||||||
Supplies | 3,224 | 3,231 | |||||||||||||||||||||||
Inventories and supplies | $ | 39,411 | $ | 28,966 | |||||||||||||||||||||
Available-for-sale securities | Available-for-sale securities – Available-for-sale marketable securities included within cash and cash equivalents, funds held for customers and other current assets were comprised of the following: | ||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(in thousands) | Cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||
Canadian and provincial government securities | $ | 9,245 | $ | — | $ | (120 | ) | $ | 9,125 | ||||||||||||||||
Canadian guaranteed investment certificate | 8,605 | — | — | 8,605 | |||||||||||||||||||||
Available-for-sale securities (funds held for customers)(1) | 17,850 | — | (120 | ) | 17,730 | ||||||||||||||||||||
Canadian money market fund (other current assets) | 1,895 | — | — | 1,895 | |||||||||||||||||||||
Total available-for-sale securities | $ | 19,745 | $ | — | $ | (120 | ) | $ | 19,625 | ||||||||||||||||
(1) Funds held for customers, as reported on the consolidated balance sheet as of December 31, 2014, also included cash of $25,874. | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
(in thousands) | Cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||
Canadian and provincial government securities | $ | 9,901 | $ | — | $ | (343 | ) | $ | 9,558 | ||||||||||||||||
Canadian guaranteed investment certificate | 5,178 | — | — | 5,178 | |||||||||||||||||||||
Available-for-sale securities (funds held for customers)(1) | 15,079 | — | (343 | ) | 14,736 | ||||||||||||||||||||
Money market securities (cash equivalents) | 70,001 | — | — | 70,001 | |||||||||||||||||||||
Canadian money market fund (other current assets) | 2,045 | — | — | 2,045 | |||||||||||||||||||||
Total available-for-sale securities | $ | 87,125 | $ | — | $ | (343 | ) | $ | 86,782 | ||||||||||||||||
(1) Funds held for customers, as reported on the consolidated balance sheet as of December 31, 2013, also included cash of $27,689. | |||||||||||||||||||||||||
Expected maturities of available-for-sale securities | Expected maturities of available-for-sale securities as of December 31, 2014 were as follows: | ||||||||||||||||||||||||
(in thousands) | Fair value | ||||||||||||||||||||||||
Due in one year or less | $ | 10,601 | |||||||||||||||||||||||
Due in two to five years | 6,259 | ||||||||||||||||||||||||
Due in six to ten years | 2,765 | ||||||||||||||||||||||||
Total available-for-sale securities | $ | 19,625 | |||||||||||||||||||||||
Property, plant and equipment | Property, plant and equipment – Property, plant and equipment was comprised of the following at December 31: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in thousands) | Gross carrying amount | Accumulated depreciation | Net carrying amount | Gross carrying amount | Accumulated depreciation | Net carrying amount | |||||||||||||||||||
Land and improvements | $ | 28,367 | $ | (7,612 | ) | $ | 20,755 | $ | 33,951 | $ | (9,445 | ) | $ | 24,506 | |||||||||||
Buildings and improvements | 109,307 | (69,882 | ) | 39,425 | 125,655 | (76,995 | ) | 48,660 | |||||||||||||||||
Machinery and equipment | 298,479 | (271,036 | ) | 27,443 | 302,663 | (274,486 | ) | 28,177 | |||||||||||||||||
Property, plant and equipment | $ | 436,153 | $ | (348,530 | ) | $ | 87,623 | $ | 462,269 | $ | (360,926 | ) | $ | 101,343 | |||||||||||
Assets held for sale | Net assets held for sale consisted of the following: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | Balance sheet caption | ||||||||||||||||||||||
Current assets | $ | 687 | $ | 727 | Other current assets | ||||||||||||||||||||
Intangibles | 25,926 | 24,603 | Assets held for sale | ||||||||||||||||||||||
Other non-current assets | 893 | 848 | Assets held for sale | ||||||||||||||||||||||
Accrued liabilities | (1,058 | ) | (733 | ) | Accrued liabilities | ||||||||||||||||||||
Non-current deferred income tax liabilities | (8,774 | ) | (7,821 | ) | Other non-current liabilities | ||||||||||||||||||||
Other non-current liabilities | — | (32 | ) | Other non-current liabilities | |||||||||||||||||||||
Net assets held for sale | $ | 17,674 | $ | 17,592 | |||||||||||||||||||||
Intangibles | Intangibles – Intangibles were comprised of the following at December 31: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in thousands) | Gross carrying amount | Accumulated amortization | Net carrying amount | Gross carrying amount | Accumulated amortization | Net carrying amount | |||||||||||||||||||
Indefinite-lived: | |||||||||||||||||||||||||
Trade name | $ | 19,100 | $ | — | $ | 19,100 | $ | 19,100 | $ | — | $ | 19,100 | |||||||||||||
Amortizable intangibles: | |||||||||||||||||||||||||
Internal-use software | 364,229 | (303,340 | ) | 60,889 | 339,995 | (275,159 | ) | 64,836 | |||||||||||||||||
Customer lists/relationships | 106,218 | (40,097 | ) | 66,121 | 63,282 | (31,606 | ) | 31,676 | |||||||||||||||||
Trade names | 69,281 | (37,623 | ) | 31,658 | 67,961 | (33,642 | ) | 34,319 | |||||||||||||||||
Software to be sold | 28,500 | (601 | ) | 27,899 | — | — | — | ||||||||||||||||||
Other | 8,160 | (6,647 | ) | 1,513 | 9,324 | (5,679 | ) | 3,645 | |||||||||||||||||
Amortizable intangibles | 576,388 | (388,308 | ) | 188,080 | 480,562 | (346,086 | ) | 134,476 | |||||||||||||||||
Intangibles | $ | 595,488 | $ | (388,308 | ) | $ | 207,180 | $ | 499,662 | $ | (346,086 | ) | $ | 153,576 | |||||||||||
Estimated amortization expense | Based on the intangibles in service as of December 31, 2014, estimated amortization expense for each of the next five years ending December 31 is as follows: | ||||||||||||||||||||||||
(in thousands) | Estimated | ||||||||||||||||||||||||
amortization | |||||||||||||||||||||||||
expense | |||||||||||||||||||||||||
2015 | $ | 45,317 | |||||||||||||||||||||||
2016 | 32,985 | ||||||||||||||||||||||||
2017 | 20,848 | ||||||||||||||||||||||||
2018 | 15,343 | ||||||||||||||||||||||||
2019 | 12,639 | ||||||||||||||||||||||||
Acquired intangibles | We acquire internal-use software in the normal course of business. In conjunction with acquisitions (Note 5), we also acquired certain other amortizable intangible assets. The following intangible assets were acquired during the years ended December 31: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | Amount | Weighted-average amortization period | Amount | Weighted-average amortization period | Amount | Weighted-average amortization period | |||||||||||||||||||
(in years) | (in years) | (in years) | |||||||||||||||||||||||
Internal-use software | $ | 33,867 | 4 | $ | 34,455 | 3 | $ | 28,097 | 4 | ||||||||||||||||
Customer lists/relationships | 45,869 | 9 | 16,610 | 8 | 10,200 | 9 | |||||||||||||||||||
Software to be sold | 28,500 | 9 | — | — | — | — | |||||||||||||||||||
Trade names | 2,000 | 3 | 200 | 2 | 900 | 5 | |||||||||||||||||||
Other | 50 | 2 | 3,310 | 4 | — | — | |||||||||||||||||||
Acquired intangibles | $ | 110,286 | 7 | $ | 54,575 | 5 | $ | 39,197 | 5 | ||||||||||||||||
Goodwill | Goodwill – Changes in goodwill by reportable segment and in total were as follows: | ||||||||||||||||||||||||
(in thousands) | Small | Financial | Direct | Total | |||||||||||||||||||||
Business | Services | Checks | |||||||||||||||||||||||
Services | |||||||||||||||||||||||||
Balance, December 31, 2012: | |||||||||||||||||||||||||
Goodwill, gross | $ | 633,952 | $ | 27,178 | $ | 148,506 | $ | 809,636 | |||||||||||||||||
Accumulated impairment charges | (20,000 | ) | — | — | (20,000 | ) | |||||||||||||||||||
Goodwill, net of accumulated impairment charges | 613,952 | 27,178 | 148,506 | 789,636 | |||||||||||||||||||||
Acquisition of VerticalResponse, Inc. (Note 5) | 18,735 | — | — | 18,735 | |||||||||||||||||||||
Acquisition of Acton Marketing, LLC (Note 5) | — | 1,459 | — | 1,459 | |||||||||||||||||||||
Acquisition of Destination Rewards, Inc. (Note 5) | — | 13,080 | — | 13,080 | |||||||||||||||||||||
Currency translation adjustment | (133 | ) | — | — | (133 | ) | |||||||||||||||||||
Balance, December 31, 2013: | |||||||||||||||||||||||||
Goodwill, gross | 652,554 | 41,717 | 148,506 | 842,777 | |||||||||||||||||||||
Accumulated impairment charges | (20,000 | ) | — | — | (20,000 | ) | |||||||||||||||||||
Goodwill, net of accumulated impairment charges | 632,554 | 41,717 | 148,506 | 822,777 | |||||||||||||||||||||
Adjustment for acquisition of Destination Rewards, Inc. (Note 5) | — | (1,375 | ) | — | (1,375 | ) | |||||||||||||||||||
Acquisition of NetClime, Inc. (Note 5) | 1,615 | — | — | 1,615 | |||||||||||||||||||||
Acquisition of Wausau Financial Systems, Inc. (Note 5) | — | 45,521 | — | 45,521 | |||||||||||||||||||||
Currency translation adjustment | (162 | ) | — | — | (162 | ) | |||||||||||||||||||
Balance, December 31, 2014: | |||||||||||||||||||||||||
Goodwill, gross | 654,007 | 85,863 | 148,506 | 888,376 | |||||||||||||||||||||
Accumulated impairment charges | (20,000 | ) | — | — | (20,000 | ) | |||||||||||||||||||
Goodwill, net of accumulated impairment charges | $ | 634,007 | $ | 85,863 | $ | 148,506 | $ | 868,376 | |||||||||||||||||
Other non-current assets | Other non-current assets – Other non-current assets were comprised of the following at December 31: | ||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Contract acquisition costs | $ | 74,101 | $ | 35,421 | |||||||||||||||||||||
Postretirement benefit plan asset (Note 12) | 24,243 | 24,981 | |||||||||||||||||||||||
Loans and notes receivable from distributors | 14,583 | 16,162 | |||||||||||||||||||||||
Deferred advertising costs | 8,922 | 10,447 | |||||||||||||||||||||||
Other | 9,792 | 13,756 | |||||||||||||||||||||||
Other non-current assets | $ | 131,641 | $ | 100,767 | |||||||||||||||||||||
Changes in contract acquisition costs | Changes in contract acquisition costs were as follows for the years ended December 31: | ||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Balance, beginning of year | $ | 35,421 | $ | 43,036 | $ | 55,076 | |||||||||||||||||||
Additions(1) | 57,225 | 10,072 | 5,543 | ||||||||||||||||||||||
Amortization | (18,105 | ) | (17,197 | ) | (17,110 | ) | |||||||||||||||||||
Other | (440 | ) | (490 | ) | (473 | ) | |||||||||||||||||||
Balance, end of year | $ | 74,101 | $ | 35,421 | $ | 43,036 | |||||||||||||||||||
(1) Contract acquisition costs are accrued upon contract execution. Cash payments made for contract acquisition costs were $16,567 for 2014, $12,133 for 2013 and $16,952 for 2012. | |||||||||||||||||||||||||
Accrued liabilities | Accrued liabilities – Accrued liabilities were comprised of the following at December 31: | ||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Deferred revenue | $ | 48,514 | $ | 16,897 | |||||||||||||||||||||
Funds held for customers | 42,944 | 41,810 | |||||||||||||||||||||||
Performance-based compensation | 38,259 | 29,544 | |||||||||||||||||||||||
Customer rebates | 20,550 | 21,623 | |||||||||||||||||||||||
Contract acquisition costs due within one year | 9,815 | 3,880 | |||||||||||||||||||||||
Restructuring due within one year (Note 8) | 4,276 | 5,609 | |||||||||||||||||||||||
Other | 54,763 | 43,627 | |||||||||||||||||||||||
Accrued liabilities | $ | 219,121 | $ | 162,990 | |||||||||||||||||||||
Supplemental cash flow information | Supplemental cash flow information – Cash payments for income taxes and interest were as follows for the years ended December 31: | ||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Income taxes paid | $ | 100,639 | $ | 90,322 | $ | 83,875 | |||||||||||||||||||
Interest paid | 39,946 | 38,676 | 46,514 | ||||||||||||||||||||||
Earnings_per_share_Tables
Earnings per share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings per share | The following table reflects the calculation of basic and diluted earnings per share. During each period, certain stock options, as noted below, were excluded from the calculation of diluted earnings per share because their effect would have been antidilutive. | ||||||||||||
(dollars and shares in thousands, except per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Earnings per share – basic: | |||||||||||||
Net income | $ | 199,794 | $ | 186,652 | $ | 170,492 | |||||||
Income allocated to participating securities | (1,075 | ) | (846 | ) | (1,161 | ) | |||||||
Income available to common shareholders | $ | 198,719 | $ | 185,806 | $ | 169,331 | |||||||
Weighted-average shares outstanding | 49,827 | 50,550 | 50,775 | ||||||||||
Earnings per share – basic | $ | 3.99 | $ | 3.68 | $ | 3.33 | |||||||
Earnings per share – diluted: | |||||||||||||
Net income | $ | 199,794 | $ | 186,652 | $ | 170,492 | |||||||
Income allocated to participating securities | (1,068 | ) | (840 | ) | (1,156 | ) | |||||||
Re-measurement of share-based awards classified as liabilities | 183 | 314 | 123 | ||||||||||
Income available to common shareholders | $ | 198,909 | $ | 186,126 | $ | 169,459 | |||||||
Weighted-average shares outstanding | 49,827 | 50,550 | 50,775 | ||||||||||
Dilutive impact of potential common shares | 435 | 460 | 301 | ||||||||||
Weighted-average shares and potential common shares outstanding | 50,262 | 51,010 | 51,076 | ||||||||||
Earnings per share – diluted | $ | 3.96 | $ | 3.65 | $ | 3.32 | |||||||
Antidilutive options excluded from calculation | 7 | 12 | 470 | ||||||||||
Other_comprehensive_income_Tab
Other comprehensive income (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||
Reclassification adjustments | Reclassification adjustments – Information regarding amounts reclassified from accumulated other comprehensive loss to net income was as follows: | ||||||||||||||||||||
Accumulated other comprehensive loss component | Amounts reclassified from accumulated other comprehensive loss | Affected line item in consolidated statements of income | |||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||
Amortization of loss on interest rate locks(1) | $ | (1,282 | ) | $ | (1,711 | ) | $ | (1,786 | ) | Interest expense | |||||||||||
Tax benefit | 501 | 671 | 676 | Income tax provision | |||||||||||||||||
Amortization of loss on interest rate locks, net of tax | (781 | ) | (1,040 | ) | (1,110 | ) | Net income | ||||||||||||||
Amortization of postretirement benefit plan items: | |||||||||||||||||||||
Prior service credit | 1,421 | 1,421 | 3,056 | (2) | |||||||||||||||||
Net actuarial loss | (3,418 | ) | (4,439 | ) | (5,879 | ) | (2) | ||||||||||||||
Total amortization | (1,997 | ) | (3,018 | ) | (2,823 | ) | (2) | ||||||||||||||
Tax benefit | 661 | 954 | 1,069 | (2) | |||||||||||||||||
Amortization of postretirement benefit plan items, net of tax | (1,336 | ) | (2,064 | ) | (1,754 | ) | (2) | ||||||||||||||
Realized gains on available-for-sale securities | — | — | 327 | Other income | |||||||||||||||||
Tax expense | — | — | (86 | ) | Income tax provision | ||||||||||||||||
Realized gains on available-for-sale securities, net of tax | — | — | 241 | Net income | |||||||||||||||||
Total reclassifications, net of tax | $ | (2,117 | ) | $ | (3,104 | ) | $ | (2,623 | ) | ||||||||||||
(1) Relates to interest rate locks executed in 2002 and 2004. Further information regarding these financial instruments can be found in Note 6: Derivative financial instruments. | |||||||||||||||||||||
(2) Amortization of postretirement benefit plan items is included in the computation of net periodic benefit (income) expense. Additional details can be found in Note 12: Postretirement benefits. | |||||||||||||||||||||
Accumulated other comprehensive loss | Accumulated other comprehensive loss – The components of accumulated other comprehensive loss at December 31 were as follows: | ||||||||||||||||||||
(in thousands) | Postretirement benefit plans, net of tax | Loss on derivatives, net of tax(1) | Net unrealized gain (loss) on marketable securities, net of tax | Currency translation adjustment | Accumulated other comprehensive loss | ||||||||||||||||
Balance, December 31, 2011 | $ | (62,278 | ) | $ | (2,931 | ) | $ | 178 | $ | 5,630 | $ | (59,401 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | 15,221 | — | (29 | ) | 939 | 16,131 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 1,754 | 1,110 | (241 | ) | — | 2,623 | |||||||||||||||
Net current-period other comprehensive income (loss) | 16,975 | 1,110 | (270 | ) | 939 | 18,754 | |||||||||||||||
Balance, December 31, 2012 | (45,303 | ) | (1,821 | ) | (92 | ) | 6,569 | (40,647 | ) | ||||||||||||
Other comprehensive income (loss) before reclassifications | 8,365 | — | (184 | ) | (4,062 | ) | 4,119 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 2,064 | 1,040 | — | — | 3,104 | ||||||||||||||||
Net current-period other comprehensive income (loss) | 10,429 | 1,040 | (184 | ) | (4,062 | ) | 7,223 | ||||||||||||||
Balance, December 31, 2013 | (34,874 | ) | (781 | ) | (276 | ) | 2,507 | (33,424 | ) | ||||||||||||
Other comprehensive income (loss) before reclassifications | 1,133 | — | 151 | (6,315 | ) | (5,031 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 1,336 | 781 | — | — | 2,117 | ||||||||||||||||
Net current-period other comprehensive income (loss) | 2,469 | 781 | 151 | (6,315 | ) | (2,914 | ) | ||||||||||||||
Balance, December 31, 2014 | $ | (32,405 | ) | $ | — | $ | (125 | ) | $ | (3,808 | ) | $ | (36,338 | ) | |||||||
(1) Relates to interest rate locks executed in 2002 and 2004. Further information regarding these financial instruments can be found in Note 6: Derivative financial instruments. |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Business Combinations [Abstract] | |||||
Allocation of purchase price | The following illustrates our preliminary allocation of the WFS purchase price to the assets acquired and liabilities assumed: | ||||
(in thousands) | Allocation of purchase price | ||||
Cash and cash equivalents | $ | 12,526 | |||
Other current assets | 23,746 | ||||
Intangibles | 63,400 | ||||
Goodwill | 45,521 | ||||
Other non-current assets | 1,311 | ||||
Current liabilities | (27,117 | ) | |||
Deferred income taxes | (15,363 | ) | |||
Other non-current liabilities | (1,674 | ) | |||
Total purchase price | 102,350 | ||||
Less: cash acquired | (12,526 | ) | |||
Purchase price, net of cash acquired | $ | 89,824 | |||
Derivative_financial_instrumen1
Derivative financial instruments (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||
Interest rate swaps | Information regarding interest rate swaps as of December 31, 2014 was as follows: | ||||||||||||||
(in thousands) | Notional amount | Fair value of interest rate swaps | Decrease in debt due to fair value adjustment | Balance sheet caption including interest rate swaps | |||||||||||
Fair value hedge related to long-term debt due in 2020 | $ | 200,000 | $ | (8,067 | ) | $ | (8,067 | ) | Other non-current liabilities | ||||||
Information regarding interest rate swaps as of December 31, 2013 was as follows: | |||||||||||||||
(in thousands) | Notional amount | Fair value of interest rate swaps | Increase (decrease) in debt due to fair value adjustment | Balance sheet caption including interest rate swaps | |||||||||||
Fair value hedge related to long-term debt due in 2014 | $ | 198,000 | $ | 2,158 | $ | 1,569 | Other current assets | ||||||||
Fair value hedge related to long-term debt due in 2020 | 200,000 | (16,239 | ) | (16,239 | ) | Other non-current liabilities | |||||||||
Total fair value hedges | $ | 398,000 | $ | (14,081 | ) | $ | (14,670 | ) | |||||||
Fair_value_measurements_Tables
Fair value measurements (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Nonrecurring fair value measurements | Information regarding these nonrecurring fair value measurements was as follows: | ||||||||||||||||||||
Fair value measurements using | |||||||||||||||||||||
Fair value as of | Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | Asset impairment charge | |||||||||||||||||
(in thousands) | measurement date | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
2014:00:00 | |||||||||||||||||||||
Internal-use software | $ | — | $ | — | $ | — | $ | — | $ | 4,036 | |||||||||||
Customer relationships | — | — | — | — | 1,952 | ||||||||||||||||
Trade name | — | — | — | — | 480 | ||||||||||||||||
Total impairment charge | $ | 6,468 | |||||||||||||||||||
2013:00:00 | |||||||||||||||||||||
Customer relationships | $ | 2,120 | $ | — | $ | — | $ | 2,120 | $ | 5,000 | |||||||||||
Gain (loss) from derivative instruments | Changes in the fair value of the interest rate swaps, as well as changes in the fair value of the hedged debt, are included in interest expense in the consolidated statements of income and were as follows: | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||
Gain (loss) from derivatives | $ | 6,014 | $ | (13,750 | ) | $ | (4,871 | ) | |||||||||||||
(Loss) gain from change in fair value of hedged debt | (6,603 | ) | 13,851 | 3,645 | |||||||||||||||||
Net (increase) decrease in interest expense | $ | (589 | ) | $ | 101 | $ | (1,226 | ) | |||||||||||||
Recurring fair value measurements | Information regarding recurring fair value measurements completed during each period was as follows: | ||||||||||||||||||||
Fair value measurements using | |||||||||||||||||||||
Fair value as of | Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||||
(in thousands) | 31-Dec-14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Available-for-sale marketable securities (funds held for customers) | $ | 17,730 | $ | — | $ | 17,730 | $ | — | |||||||||||||
Available-for-sale marketable securities (other current assets) | 1,895 | — | 1,895 | — | |||||||||||||||||
Long-term investment in mutual funds | 2,384 | 2,384 | — | — | |||||||||||||||||
Derivative liabilities | (8,067 | ) | — | (8,067 | ) | — | |||||||||||||||
Fair value measurements using | |||||||||||||||||||||
Fair value as of | Quoted prices in active markets for identical assets | Significant other | Significant unobservable inputs | ||||||||||||||||||
31-Dec-13 | observable inputs | ||||||||||||||||||||
(in thousands) | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Available-for-sale marketable securities (cash equivalents) | $ | 70,001 | $ | 70,001 | $ | — | $ | — | |||||||||||||
Available-for-sale marketable securities (funds held for customers) | 14,736 | — | 14,736 | — | |||||||||||||||||
Available-for-sale marketable securities (other current assets) | 2,045 | — | 2,045 | — | |||||||||||||||||
Long-term investment in mutual funds | 2,407 | 2,407 | — | — | |||||||||||||||||
Derivative assets | 2,158 | — | 2,158 | — | |||||||||||||||||
Derivative liabilities | (16,239 | ) | — | (16,239 | ) | — | |||||||||||||||
Fair value measurements of other financial instruments | |||||||||||||||||||||
Fair value measurements using | |||||||||||||||||||||
December 31, 2014 | Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||||
(in thousands) | Carrying value | Fair value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Cash (excluding cash equivalents) | $ | 61,541 | $ | 61,541 | $ | 61,541 | $ | — | $ | — | |||||||||||
Cash (funds held for customers) | 25,874 | 25,874 | 25,874 | — | — | ||||||||||||||||
Loans and notes receivable from distributors | 16,915 | 15,765 | — | — | 15,765 | ||||||||||||||||
Short-term borrowings | 160,000 | 160,000 | 160,000 | — | — | ||||||||||||||||
Long-term debt(1) | 391,933 | 419,000 | — | 419,000 | — | ||||||||||||||||
(1) Amounts exclude capital lease obligations. | |||||||||||||||||||||
Fair value measurements using | |||||||||||||||||||||
December 31, 2013 | Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||||
(in thousands) | Carrying value | Fair value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Cash (excluding cash equivalents) | $ | 51,088 | $ | 51,088 | $ | 51,088 | $ | — | $ | — | |||||||||||
Cash (funds held for customers) | 27,689 | 27,689 | 27,689 | — | — | ||||||||||||||||
Loans and notes receivable from distributors | 18,047 | 17,051 | — | — | 17,051 | ||||||||||||||||
Long-term debt, including portion due within one year(1) | 638,787 | 684,133 | — | 684,133 | — | ||||||||||||||||
(1) Amounts exclude capital lease obligations. |
Restructuring_charges_Tables
Restructuring charges (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||
Restructuring charges by type and income statement category | Net restructuring charges for the years ended December 31 consisted of the following components: | ||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Severance accruals | $ | 8,411 | $ | 7,495 | $ | 7,619 | |||||||||||||||||||||||
Severance reversals | (1,513 | ) | (805 | ) | (1,862 | ) | |||||||||||||||||||||||
Operating lease obligations | — | 216 | 396 | ||||||||||||||||||||||||||
Operating lease obligations reversals | — | (157 | ) | — | |||||||||||||||||||||||||
Net restructuring accruals | 6,898 | 6,749 | 6,153 | ||||||||||||||||||||||||||
Other costs | 2,757 | 4,157 | 4,581 | ||||||||||||||||||||||||||
Net restructuring charges | $ | 9,655 | $ | 10,906 | $ | 10,734 | |||||||||||||||||||||||
The net restructuring charges for the years ended December 31 are reflected in the consolidated statements of income as follows: | |||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Total cost of revenue | $ | 879 | $ | 1,471 | $ | 2,808 | |||||||||||||||||||||||
Operating expenses | 8,776 | 9,435 | 7,926 | ||||||||||||||||||||||||||
Net restructuring charges | $ | 9,655 | $ | 10,906 | $ | 10,734 | |||||||||||||||||||||||
Restructuring accruals, initiatives summarized by year | Accruals for our restructuring initiatives, summarized by year, were as follows: | ||||||||||||||||||||||||||||
(in thousands) | 2009/2010 | 2011 | 2012 | 2013 | 2014 | Total | |||||||||||||||||||||||
initiatives | initiatives | initiatives | initiatives | initiatives | |||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 965 | $ | 5,067 | $ | — | $ | — | $ | — | $ | 6,032 | |||||||||||||||||
Restructuring charges | 26 | 281 | 7,708 | — | — | 8,015 | |||||||||||||||||||||||
Restructuring reversals | (228 | ) | (1,105 | ) | (529 | ) | — | — | (1,862 | ) | |||||||||||||||||||
Payments | (678 | ) | (4,222 | ) | (2,635 | ) | — | — | (7,535 | ) | |||||||||||||||||||
Balance, December 31, 2012 | 85 | 21 | 4,544 | — | — | 4,650 | |||||||||||||||||||||||
Restructuring charges | — | 49 | 283 | 7,379 | — | 7,711 | |||||||||||||||||||||||
Restructuring reversals | — | (3 | ) | (822 | ) | (137 | ) | — | (962 | ) | |||||||||||||||||||
Payments | (85 | ) | (67 | ) | (3,596 | ) | (2,013 | ) | — | (5,761 | ) | ||||||||||||||||||
Balance, December 31, 2013 | — | — | 409 | 5,229 | — | 5,638 | |||||||||||||||||||||||
Restructuring charges | — | — | 21 | 250 | 8,140 | 8,411 | |||||||||||||||||||||||
Restructuring reversals | — | — | (12 | ) | (859 | ) | (642 | ) | (1,513 | ) | |||||||||||||||||||
Payments | — | — | (386 | ) | (4,492 | ) | (3,382 | ) | (8,260 | ) | |||||||||||||||||||
Balance, December 31, 2014 | $ | — | $ | — | $ | 32 | $ | 128 | $ | 4,116 | $ | 4,276 | |||||||||||||||||
Cumulative amounts: | |||||||||||||||||||||||||||||
Restructuring charges | $ | 20,765 | $ | 9,124 | $ | 8,012 | $ | 7,629 | $ | 8,140 | $ | 53,670 | |||||||||||||||||
Restructuring reversals | (3,220 | ) | (1,719 | ) | (1,363 | ) | (996 | ) | (642 | ) | (7,940 | ) | |||||||||||||||||
Payments | (17,545 | ) | (7,405 | ) | (6,617 | ) | (6,505 | ) | (3,382 | ) | (41,454 | ) | |||||||||||||||||
Balance, December 31, 2014 | $ | — | $ | — | $ | 32 | $ | 128 | $ | 4,116 | $ | 4,276 | |||||||||||||||||
Restructuring accruals, by segment | The components of our restructuring accruals, by segment, were as follows: | ||||||||||||||||||||||||||||
Employee severance benefits | Operating lease obligations | ||||||||||||||||||||||||||||
(in thousands) | Small Business Services | Financial Services | Direct Checks | Small Business Services | Direct Checks | Total | |||||||||||||||||||||||
Corporate(1) | |||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 887 | $ | 1,397 | $ | 744 | $ | 2,647 | $ | 69 | $ | 288 | $ | 6,032 | |||||||||||||||
Restructuring charges | 2,485 | 1,331 | 166 | 3,637 | 278 | 118 | 8,015 | ||||||||||||||||||||||
Restructuring reversals | (422 | ) | (227 | ) | (136 | ) | (1,077 | ) | — | — | (1,862 | ) | |||||||||||||||||
Inter-segment transfer | 184 | (184 | ) | (40 | ) | 40 | — | — | — | ||||||||||||||||||||
Payments | (2,491 | ) | (1,227 | ) | (690 | ) | (2,775 | ) | (96 | ) | (256 | ) | (7,535 | ) | |||||||||||||||
Balance, December 31, 2012 | 643 | 1,090 | 44 | 2,472 | 251 | 150 | 4,650 | ||||||||||||||||||||||
Restructuring charges | 2,459 | 2,619 | 407 | 2,010 | 164 | 52 | 7,711 | ||||||||||||||||||||||
Restructuring reversals | (129 | ) | (249 | ) | (4 | ) | (423 | ) | (157 | ) | — | (962 | ) | ||||||||||||||||
Payments | (1,349 | ) | (1,469 | ) | (82 | ) | (2,551 | ) | (108 | ) | (202 | ) | (5,761 | ) | |||||||||||||||
Balance, December 31, 2013 | 1,624 | 1,991 | 365 | 1,508 | 150 | — | 5,638 | ||||||||||||||||||||||
Restructuring charges | 3,566 | 2,897 | 36 | 1,912 | — | — | 8,411 | ||||||||||||||||||||||
Restructuring reversals | (858 | ) | (306 | ) | (37 | ) | (312 | ) | — | — | (1,513 | ) | |||||||||||||||||
Payments | (2,920 | ) | (2,734 | ) | (364 | ) | (2,124 | ) | (118 | ) | — | (8,260 | ) | ||||||||||||||||
Balance, December 31, 2014 | $ | 1,412 | $ | 1,848 | $ | — | $ | 984 | $ | 32 | $ | — | $ | 4,276 | |||||||||||||||
Cumulative amounts(2): | |||||||||||||||||||||||||||||
Restructuring charges | $ | 17,507 | $ | 12,681 | $ | 3,892 | $ | 18,105 | $ | 806 | $ | 679 | $ | 53,670 | |||||||||||||||
Restructuring reversals | (2,958 | ) | (1,497 | ) | (369 | ) | (2,959 | ) | (157 | ) | — | (7,940 | ) | ||||||||||||||||
Inter-segment transfer | 309 | 50 | (38 | ) | (321 | ) | — | — | — | ||||||||||||||||||||
Payments | (13,446 | ) | (9,386 | ) | (3,485 | ) | (13,841 | ) | (617 | ) | (679 | ) | (41,454 | ) | |||||||||||||||
Balance, December 31, 2014 | $ | 1,412 | $ | 1,848 | $ | — | $ | 984 | $ | 32 | $ | — | $ | 4,276 | |||||||||||||||
(1) As discussed in Note 16: Business segment information, corporate costs are allocated to our business segments. As such, the net corporate restructuring charges are reflected in the business segment operating income presented in Note 16 in accordance with our allocation methodology. | |||||||||||||||||||||||||||||
(2) Includes accruals related to our cost reduction initiatives for 2009 through 2014. |
Income_tax_provision_Tables
Income tax provision (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Income before income taxes | Income before income taxes was comprised of the following for the years ended December 31: | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
United States | $ | 279,326 | $ | 263,427 | $ | 237,450 | |||||||||||
Foreign | 17,855 | 17,632 | 13,303 | ||||||||||||||
Income before income taxes | $ | 297,181 | $ | 281,059 | $ | 250,753 | |||||||||||
Components of income tax provision | The components of the income tax provision were as follows for the years ended December 31: | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Current tax provision: | |||||||||||||||||
Federal | $ | 91,630 | $ | 80,262 | $ | 66,178 | |||||||||||
State | 8,674 | 11,599 | 6,276 | ||||||||||||||
Foreign | 4,496 | 4,789 | 1,537 | ||||||||||||||
Total current tax provision | 104,800 | 96,650 | 73,991 | ||||||||||||||
Deferred tax provision: | |||||||||||||||||
Federal | (6,165 | ) | (1,403 | ) | 6,799 | ||||||||||||
State | (1,491 | ) | (618 | ) | 735 | ||||||||||||
Foreign | 243 | (222 | ) | (1,264 | ) | ||||||||||||
Total deferred tax provision | (7,413 | ) | (2,243 | ) | 6,270 | ||||||||||||
Income tax provision | $ | 97,387 | $ | 94,407 | $ | 80,261 | |||||||||||
Effective tax rate reconciliation | The effective tax rate on pre-tax income reconciles to the U.S. federal statutory tax rate of 35% for the years ended December 31 as follows: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Income tax at federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||||||
State income tax expense, net of federal income tax benefit | 2.3 | % | 2.8 | % | 2.5 | % | |||||||||||
Qualified production activities deduction | (2.8 | %) | (2.8 | %) | (2.6 | %) | |||||||||||
Receivables for prior year tax returns(1) | — | (0.1 | %) | (0.7 | %) | ||||||||||||
Impact of health care legislation on deferred income taxes(2) | — | — | (0.4 | %) | |||||||||||||
Other | (1.7 | %) | (1.3 | %) | (1.8 | %) | |||||||||||
Income tax provision | 32.8 | % | 33.6 | % | 32 | % | |||||||||||
(1) The 2012 reduction reflects amendments to prior year tax returns claiming refunds primarily associated with state tax returns. | |||||||||||||||||
(2) Our 2012 income tax provision was reduced $949 by actions taken to restore a portion of the deferred tax asset attributable to the receipt of Medicare Part D subsidy payments. | |||||||||||||||||
Rollforward of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued interest and penalties and the federal benefit of deductible state income tax, is as follows: | ||||||||||||||||
(in thousands) | Unrecognized tax benefits | ||||||||||||||||
Balance, December 31, 2011 | $ | 6,236 | |||||||||||||||
Additions for tax positions of current year | 364 | ||||||||||||||||
Additions for tax positions of prior years | 2,793 | ||||||||||||||||
Reductions for tax positions of prior years | (2,976 | ) | |||||||||||||||
Settlements | (416 | ) | |||||||||||||||
Lapse of statutes of limitations | (382 | ) | |||||||||||||||
Balance, December 31, 2012 | 5,619 | ||||||||||||||||
Additions for tax positions of current year | 617 | ||||||||||||||||
Additions for tax positions of prior years | 834 | ||||||||||||||||
Fair value of acquired tax positions | 316 | ||||||||||||||||
Reductions for tax positions of prior years | (1,178 | ) | |||||||||||||||
Lapse of statutes of limitations | (203 | ) | |||||||||||||||
Balance, December 31, 2013 | 6,005 | ||||||||||||||||
Additions for tax positions of current year | 487 | ||||||||||||||||
Additions for tax positions of prior years | 500 | ||||||||||||||||
Fair value of acquired tax positions | 65 | ||||||||||||||||
Reductions for tax positions of prior years | (902 | ) | |||||||||||||||
Lapse of statutes of limitations | (214 | ) | |||||||||||||||
Adoption of ASU No. 2013-11 (Note 1) | (669 | ) | |||||||||||||||
Balance, December 31, 2014 | $ | 5,272 | |||||||||||||||
Deferred tax assets and liabilities | Tax-effected temporary differences which gave rise to deferred tax assets and liabilities as of December 31 were as follows: | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | Deferred tax assets | Deferred tax liabilities | Deferred tax assets | Deferred tax liabilities | |||||||||||||
Goodwill | $ | — | $ | 56,875 | $ | — | $ | 51,962 | |||||||||
Intangible assets | — | 40,010 | — | 28,370 | |||||||||||||
Prepaid assets | — | 4,640 | — | 2,859 | |||||||||||||
Deferred advertising costs | — | 4,176 | — | 4,814 | |||||||||||||
Early extinguishment of debt | — | 3,129 | — | 3,921 | |||||||||||||
Employee benefit plans | 9,485 | — | 3,319 | — | |||||||||||||
Reserves and accruals | 8,119 | — | 7,206 | — | |||||||||||||
Net operating loss and capital loss carryforwards | 7,797 | — | 9,129 | — | |||||||||||||
Inventories | 2,992 | — | 2,768 | — | |||||||||||||
Federal benefit of state uncertain tax positions | 1,882 | — | 2,259 | — | |||||||||||||
All other | 1,844 | 4,612 | 2,449 | 6,018 | |||||||||||||
Total deferred taxes | 32,119 | 113,442 | 27,130 | 97,944 | |||||||||||||
Valuation allowances | (2,945 | ) | — | (3,203 | ) | — | |||||||||||
Net deferred taxes | $ | 29,174 | $ | 113,442 | $ | 23,927 | $ | 97,944 | |||||||||
Sharebased_compensation_plans_
Share-based compensation plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||
Share-based compensation expense | The following amounts were recognized in our consolidated statements of income for share-based compensation awards for the years ended December 31 : | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||
Stock options | $ | 4,305 | $ | 4,705 | $ | 4,681 | ||||||||
Restricted shares and restricted stock units | 4,111 | 2,556 | 2,323 | |||||||||||
Performance share awards | 966 | — | — | |||||||||||
Employee stock purchase plan | 394 | 301 | 288 | |||||||||||
Total share-based compensation expense | $ | 9,776 | $ | 7,562 | $ | 7,292 | ||||||||
Income tax benefit | $ | (3,204 | ) | $ | (2,595 | ) | $ | (2,439 | ) | |||||
Weighted-average assumptions used in Black-Scholes option pricing model | The following weighted-average assumptions were used in the Black-Scholes option pricing model in determining the fair value of stock options granted: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Risk-free interest rate | 1.2 | % | 0.7 | % | 0.7 | % | ||||||||
Dividend yield | 2 | % | 2.6 | % | 4 | % | ||||||||
Expected volatility | 36.1 | % | 50.5 | % | 59.6 | % | ||||||||
Weighted-average option life (in years) | 4.3 | 4.3 | 4.3 | |||||||||||
Stock options rollforward | Information regarding options issued under the current and all previous plans was as follows: | |||||||||||||
Number of options | Weighted-average exercise price per option | Aggregate intrinsic value | Weighted-average remaining contractual term | |||||||||||
(in thousands) | (in years) | |||||||||||||
Outstanding, December 31, 2011 | 2,766 | $ | 23.26 | |||||||||||
Granted | 671 | 25.16 | ||||||||||||
Exercised | (989 | ) | 18.7 | |||||||||||
Forfeited or expired | (226 | ) | 32.13 | |||||||||||
Outstanding, December 31, 2012 | 2,222 | 24.96 | ||||||||||||
Granted | 465 | 38.74 | ||||||||||||
Exercised | (912 | ) | 27.19 | |||||||||||
Forfeited or expired | (135 | ) | 30.03 | |||||||||||
Outstanding, December 31, 2013 | 1,640 | 27.22 | ||||||||||||
Granted | 290 | 50.48 | ||||||||||||
Exercised | (552 | ) | 23.81 | |||||||||||
Forfeited or expired | (66 | ) | 37.53 | |||||||||||
Outstanding, December 31, 2014 | 1,312 | 33.28 | $ | 38,020 | 4.4 | |||||||||
Exercisable at December 31, 2012 | 1,134 | $ | 25.68 | |||||||||||
Exercisable at December 31, 2013 | 759 | 22.09 | ||||||||||||
Exercisable at December 31, 2014 | 645 | 25.76 | $ | 23,540 | 3.5 | |||||||||
Restricted stock units rollforward | Information regarding our restricted stock units was as follows: | |||||||||||||
Number of units | Weighted-average grant date fair value per unit | Weighted-average remaining contractual term | ||||||||||||
(in thousands) | (in years) | |||||||||||||
Outstanding at December 31, 2011 | 101 | $ | 24.26 | |||||||||||
Granted | 43 | 24.26 | ||||||||||||
Vested | (16 | ) | 20.63 | |||||||||||
Forfeited | (5 | ) | 23.42 | |||||||||||
Outstanding at December 31, 2012 | 123 | 24.56 | ||||||||||||
Granted | 45 | 36.74 | ||||||||||||
Vested | (11 | ) | 24.33 | |||||||||||
Forfeited | (7 | ) | 26.78 | |||||||||||
Outstanding at December 31, 2013 | 150 | 27.11 | ||||||||||||
Granted | 30 | 53.64 | ||||||||||||
Vested | (13 | ) | 23.42 | |||||||||||
Forfeited | (1 | ) | 34.08 | |||||||||||
Outstanding at December 31, 2014 | 166 | 30.51 | 3.6 | |||||||||||
Restricted shares rollforward | Information regarding unvested restricted shares was as follows: | |||||||||||||
Number of shares | Weighted-average grant date fair value per share | Weighted-average remaining contractual term | ||||||||||||
(in thousands) | (in years) | |||||||||||||
Unvested at December 31, 2011 | 40 | $ | 23.71 | |||||||||||
Granted | 37 | 23.63 | ||||||||||||
Vested | (34 | ) | 23.44 | |||||||||||
Forfeited | (3 | ) | 25.37 | |||||||||||
Unvested at December 31, 2012 | 40 | 23.73 | ||||||||||||
Granted | 17 | 37.5 | ||||||||||||
Vested | (33 | ) | 23.68 | |||||||||||
Forfeited | (3 | ) | 23.45 | |||||||||||
Unvested at December 31, 2013 | 21 | 35.24 | ||||||||||||
Granted | 121 | 51.08 | ||||||||||||
Vested | (11 | ) | 37.06 | |||||||||||
Forfeited | (11 | ) | 48.14 | |||||||||||
Unvested at December 31, 2014 | 120 | 49.96 | 1.9 | |||||||||||
Weighted-average assumptions used in Monte Carlo simulation pricing model, performance share awards | he following weighted-average assumptions were used in the Monte Carlo simulation model in determining the fair value of market-based performance shares granted: | |||||||||||||
2014 | ||||||||||||||
Risk-free interest rate | 0.7 | % | ||||||||||||
Dividend yield | 2.4 | % | ||||||||||||
Expected volatility | 30.5 | % | ||||||||||||
Performance share awards rollforward | The performance share information presented in the table below represents the target amount of awards granted. The actual number of shares awarded upon vesting may be higher or lower depending upon our execution relative to the performance targets as of the end of the performance period. | |||||||||||||
Performance shares | Weighted-average grant date fair value per share | Weighted-average remaining contractual term | ||||||||||||
(in thousands) | (in years) | |||||||||||||
Unvested at December 31, 2013 | — | $ | — | |||||||||||
Granted | 74 | 50.14 | ||||||||||||
Forfeited | (5 | ) | 50.14 | |||||||||||
Unvested at December 31, 2014 | 69 | 50.14 | 2.2 | |||||||||||
Employee_benefit_plans_Tables
Employee benefit plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Employee benefit plans [Abstract] | |||||||||||||
Expense recognized for employee compensation plans | Expense recognized in the consolidated statements of income for these plans was as follows for the years ended December 31: | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Performance-based compensation plans(1) | $ | 29,629 | $ | 25,561 | $ | 33,007 | |||||||
401(k) expense | 7,209 | 7,004 | 6,680 | ||||||||||
(1) Includes expense for profit sharing contributions, as they vary based on our performance. Excludes expense for stock-based compensation, which is discussed in Note 10: Share-based compensation. |
Postretirement_benefits_Tables
Postretirement benefits (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||
Change in benefit obligation, plan assets and funded status | Obligations and funded status – The following tables summarize the change in benefit obligation, plan assets and funded status during 2014 and 2013: | ||||||||||||||||||
(in thousands) | Postretirement benefit plan | Pension plan | |||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||
Benefit obligation, December 31, 2012 | $ | 117,230 | $ | 3,872 | |||||||||||||||
Interest cost | 3,535 | 117 | |||||||||||||||||
Net actuarial gain | (2,666 | ) | (237 | ) | |||||||||||||||
Benefits paid from plan assets and company funds | (10,386 | ) | (324 | ) | |||||||||||||||
Medicare Part D reimbursements | 854 | — | |||||||||||||||||
Benefit obligation, December 31, 2013 | 108,567 | 3,428 | |||||||||||||||||
Interest cost | 4,414 | 139 | |||||||||||||||||
Net actuarial (gain) loss | (3,513 | ) | 621 | ||||||||||||||||
Benefits paid from plan assets and company funds | (9,878 | ) | (324 | ) | |||||||||||||||
Medicare Part D reimbursements | 842 | — | |||||||||||||||||
Benefit obligation, December 31, 2014 | $ | 100,432 | $ | 3,864 | |||||||||||||||
Change in plan assets: | |||||||||||||||||||
Fair value of plan assets, December 31, 2012 | $ | 122,223 | $ | — | |||||||||||||||
Return on plan assets | 18,886 | — | |||||||||||||||||
Benefits paid | (7,561 | ) | — | ||||||||||||||||
Fair value of plan assets, December 31, 2013 | 133,548 | — | |||||||||||||||||
Return on plan assets | 7,701 | — | |||||||||||||||||
Benefits paid | (8,434 | ) | — | ||||||||||||||||
Transfer of assets to VEBA trust | (8,140 | ) | — | ||||||||||||||||
Fair value of plan assets, December 31, 2014 | $ | 124,675 | $ | — | |||||||||||||||
Funded status, December 31, 2013 | $ | 24,981 | $ | (3,428 | ) | ||||||||||||||
Funded status, December 31, 2014 | $ | 24,243 | $ | (3,864 | ) | ||||||||||||||
Amounts recognized in consolidated balance sheets | The funded status of our plans was recognized in the consolidated balance sheets as of December 31 as follows: | ||||||||||||||||||
Postretirement benefit plan | Pension plan | ||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Other non-current assets | $ | 24,243 | $ | 24,981 | $ | — | $ | — | |||||||||||
Accrued liabilities | — | — | 324 | 324 | |||||||||||||||
Other non-current liabilities | — | — | 3,540 | 3,104 | |||||||||||||||
Amounts included in other comprehensive loss that have not been recognized as components of postretirement benefit (income) expense | Amounts included in accumulated other comprehensive loss as of December 31 that have not been recognized as components of postretirement benefit expense were as follows: | ||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||
Unrecognized prior service credit | $ | 19,863 | $ | 21,284 | |||||||||||||||
Unrecognized net actuarial loss | (65,073 | ) | (70,350 | ) | |||||||||||||||
Tax effect | 12,805 | 14,192 | |||||||||||||||||
Amount recognized in accumulated other comprehensive loss, net of tax | $ | (32,405 | ) | $ | (34,874 | ) | |||||||||||||
Amounts included in accumulated other comprehensive loss expected to be recognized in next 12 months | Amounts included in accumulated other comprehensive loss as of December 31, 2014 which we expect to recognize in postretirement benefit expense during 2015 are as follows: | ||||||||||||||||||
(in thousands) | Amounts expected to be expensed | ||||||||||||||||||
Prior service credit | $ | (1,421 | ) | ||||||||||||||||
Net actuarial loss | 3,120 | ||||||||||||||||||
Total | $ | 1,699 | |||||||||||||||||
Components of net periodic benefit (income) expense | Postretirement benefit (income) expense – Postretirement benefit (income) expense for the years ended December 31 consisted of the following components: | ||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||
Interest cost | $ | 4,553 | $ | 3,652 | $ | 6,061 | |||||||||||||
Expected return on plan assets | (8,734 | ) | (8,030 | ) | (7,803 | ) | |||||||||||||
Amortization of prior service credit | (1,421 | ) | (1,421 | ) | (3,055 | ) | |||||||||||||
Amortization of net actuarial losses | 3,418 | 4,439 | 5,879 | ||||||||||||||||
Net periodic benefit (income) expense | $ | (2,184 | ) | $ | (1,360 | ) | $ | 1,082 | |||||||||||
Actuarial assumptions used in measuring benefit obligation and net periodic benefit (income) expense | Actuarial assumptions – In measuring benefit obligations as of December 31, the following discount rate assumptions were used: | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Discount rate | 3.45 | % | 4.25 | % | |||||||||||||||
In measuring net periodic benefit (income) expense for the years ended December 31, the following assumptions were used: | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Discount rate | 4.25 | % | 3.15 | % | 4.2 | % | |||||||||||||
Expected return on plan assets | 6.75 | % | 6.75 | % | 7.25 | % | |||||||||||||
Health care cost trend rate assumptions | In measuring benefit obligations as of December 31 for our postretirement benefit plan, the following assumptions for health care cost trend rates were used: | ||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Participants under age 65 | Participants age 65 and older | Participants under age 65 | Participants age 65 and older | Participants under age 65 | Participants age 65 and older | ||||||||||||||
Health care cost trend rate assumed for next year | 7.5 | % | 7 | % | 7.75 | % | 7.25 | % | 8 | % | 7.5 | % | |||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5 | % | 5 | % | 5 | % | 5 | % | 5 | % | 5 | % | |||||||
Year that the rate reaches the ultimate trend rate | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||
Effect of one-percentage-point change in assumed health care cost trend rates | Assumed health care cost trend rates have an effect on the amounts reported for health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: | ||||||||||||||||||
(in thousands) | One percentage point increase | One percentage point decrease | |||||||||||||||||
Effect on total of service and interest cost | $ | 55 | $ | (52 | ) | ||||||||||||||
Effect on benefit obligation | 1,607 | (1,506 | ) | ||||||||||||||||
Allocation of plan assets by asset category | Plan assets – The allocation of plan assets by asset category as of December 31 was as follows: | ||||||||||||||||||
Postretirement benefit plan | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
U.S. large capitalization equity securities | 33 | % | 35 | % | |||||||||||||||
International equity securities | 18 | % | 18 | % | |||||||||||||||
Mortgage-backed securities | 14 | % | 12 | % | |||||||||||||||
Government debt securities | 14 | % | 11 | % | |||||||||||||||
U.S. corporate debt securities | 14 | % | 10 | % | |||||||||||||||
U.S. small and mid-capitalization equity securities | 7 | % | 7 | % | |||||||||||||||
Other debt securities | — | 7 | % | ||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||
Fair value measurements of plan assets | Information regarding fair value measurements of plan assets was as follows: | ||||||||||||||||||
Fair value measurements using | |||||||||||||||||||
Fair value as of | Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||
December 31, | |||||||||||||||||||
(in thousands) | 2014 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
U.S. large capitalization equity securities | $ | 40,847 | $ | — | $ | 40,847 | $ | — | |||||||||||
International equity securities | 22,416 | 21,823 | 593 | — | |||||||||||||||
U.S. corporate debt securities | 17,823 | — | 17,823 | — | |||||||||||||||
Mortgage-backed securities | 17,713 | — | 17,713 | — | |||||||||||||||
Government debt securities | 17,031 | — | 17,031 | — | |||||||||||||||
U.S. small and mid-capitalization equity securities | 8,702 | 7,090 | 1,612 | — | |||||||||||||||
Other debt securities | 143 | 54 | 89 | — | |||||||||||||||
Total | $ | 124,675 | $ | 28,967 | $ | 95,708 | $ | — | |||||||||||
Fair value measurements using | |||||||||||||||||||
Fair value as of | Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||
December 31, | |||||||||||||||||||
(in thousands) | 2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
U.S. large capitalization equity securities | $ | 45,876 | $ | 3,033 | $ | 42,843 | $ | — | |||||||||||
International equity securities | 24,269 | 23,397 | 872 | — | |||||||||||||||
Mortgage-backed securities | 16,060 | — | 16,060 | — | |||||||||||||||
Government debt securities | 14,946 | — | 14,946 | — | |||||||||||||||
U.S. corporate debt securities | 13,287 | — | 13,287 | — | |||||||||||||||
U.S. small and mid-capitalization equity securities | 9,646 | 9,470 | 176 | — | |||||||||||||||
Other debt securities | 9,464 | 7,297 | 2,167 | — | |||||||||||||||
Total | $ | 133,548 | $ | 43,197 | $ | 90,351 | $ | — | |||||||||||
Expected benefit payments | The following benefit payments are expected to be paid during the years indicated: | ||||||||||||||||||
(in thousands) | Postretirement benefit plan | Pension plan | |||||||||||||||||
2015 | $ | 9,100 | $ | 320 | |||||||||||||||
2016 | 9,200 | 320 | |||||||||||||||||
2017 | 9,400 | 310 | |||||||||||||||||
2018 | 9,100 | 300 | |||||||||||||||||
2019 | 8,500 | 290 | |||||||||||||||||
2020 - 2024 | 35,100 | 1,280 | |||||||||||||||||
Debt_and_lease_obligations_Tab
Debt and lease obligations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt and lease obligations [Abstract] | |||||||||
Debt outstanding | Debt outstanding was comprised of the following at December 31: | ||||||||
(in thousands) | 2014 | 2013 | |||||||
7.0% senior notes due March 15, 2019 | $ | 200,000 | $ | 200,000 | |||||
6.0% senior notes due November 15, 2020(1) | 191,933 | 183,761 | |||||||
Long-term portion of capital lease obligations | 1,468 | 1,354 | |||||||
Long-term portion of debt | 393,401 | 385,115 | |||||||
Amount drawn on credit facility | 160,000 | — | |||||||
5.125% senior, unsecured notes due October 1, 2014, net of discount(2) | — | 255,026 | |||||||
Capital lease obligations due within one year | 911 | 563 | |||||||
Total debt | $ | 554,312 | $ | 640,704 | |||||
(1) Includes decrease due to cumulative change in fair value of hedged debt of $8,067 as of December 31, 2014 and $16,239 as of December 31, 2013. | |||||||||
(2) Includes increase due to cumulative change in fair value of hedged debt of $1,569 as of December 31, 2013. | |||||||||
Credit facility, daily average amount outstanding | No amounts were borrowed under our credit facility during 2013 or 2012. Daily average amounts outstanding under our credit facility during 2014 were as follows: | ||||||||
(in thousands) | 2014 | ||||||||
Daily average amount outstanding | $ | 43,675 | |||||||
Weighted-average interest rate | 1.63 | % | |||||||
Credit facility, amount available for borrowing | Amounts available for borrowing under our credit facility as of December 31, 2014 were as follows: | ||||||||
(in thousands) | Total available | ||||||||
Credit facility commitment | $ | 350,000 | |||||||
Amount drawn on credit facility | (160,000 | ) | |||||||
Outstanding letters of credit(1) | (12,728 | ) | |||||||
Net available for borrowing as of December 31, 2014 | $ | 177,272 | |||||||
(1) We use standby letters of credit primarily to collateralize certain obligations related 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 credit facility. | |||||||||
Leased assets, capital leases | The balance of those leased assets placed in service as of December 31 was as follows: | ||||||||
(in thousands) | 2014 | 2013 | |||||||
Machinery and equipment | $ | 2,911 | $ | 700 | |||||
Accumulated depreciation | (926 | ) | (131 | ) | |||||
Net assets under capital leases | $ | 1,985 | $ | 569 | |||||
Future minimum lease payments due under capital and noncancelable operating leases | Rental expense was $13,099 for 2014, $11,855 for 2013 and $13,390 for 2012. As of December 31, 2014, future minimum lease payments under our capital lease obligations and noncancelable operating leases with terms in excess of one year were as follows: | ||||||||
(in thousands) | Capital lease obligations | Operating lease obligations | |||||||
2015 | $ | 934 | $ | 9,097 | |||||
2016 | 881 | 8,204 | |||||||
2017 | 526 | 4,112 | |||||||
2018 | 108 | 2,456 | |||||||
2019 | — | 1,902 | |||||||
Thereafter | — | 1,402 | |||||||
Total minimum lease payments | 2,449 | $ | 27,173 | ||||||
Less portion representing interest | (70 | ) | |||||||
Present value of minimum lease payments | $ | 2,379 | |||||||
Business_segment_information_T
Business segment information (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||
Business segment information | The following is our segment information as of and for the years ended December 31: | ||||||||||||||||||||||
Reportable Business Segments | |||||||||||||||||||||||
(in thousands) | Small Business Services | Financial Services | Direct Checks | Corporate | Consolidated | ||||||||||||||||||
Total revenue from external | 2014 | $ | 1,129,250 | $ | 368,384 | $ | 176,448 | $ | — | $ | 1,674,082 | ||||||||||||
customers: | 2013 | 1,050,250 | 343,160 | 191,414 | — | 1,584,824 | |||||||||||||||||
2012 | 961,631 | 341,135 | 212,151 | — | 1,514,917 | ||||||||||||||||||
Operating income: | 2014 | 188,335 | 86,799 | 57,499 | — | 332,633 | |||||||||||||||||
2013 | 175,888 | 82,343 | 59,683 | — | 317,914 | ||||||||||||||||||
2012 | 160,363 | 77,728 | 63,937 | — | 302,028 | ||||||||||||||||||
Depreciation and amortization | 2014 | 44,622 | 14,471 | 6,749 | — | 65,842 | |||||||||||||||||
expense: | 2013 | 45,329 | 11,231 | 7,913 | — | 64,473 | |||||||||||||||||
2012 | 44,408 | 12,059 | 9,185 | — | 65,652 | ||||||||||||||||||
Asset impairment charges: | 2014 | 6,468 | — | — | — | 6,468 | |||||||||||||||||
2013 | 5,000 | — | — | — | 5,000 | ||||||||||||||||||
2012 | — | — | — | — | — | ||||||||||||||||||
Total assets: | 2014 | 956,349 | 267,258 | 164,171 | 300,613 | 1,688,391 | |||||||||||||||||
2013 | 943,868 | 109,612 | 167,283 | 348,766 | 1,569,529 | ||||||||||||||||||
2012 | 877,840 | 82,150 | 169,936 | 282,514 | 1,412,440 | ||||||||||||||||||
Capital asset purchases: | 2014 | — | — | — | 41,119 | 41,119 | |||||||||||||||||
2013 | — | — | — | 37,459 | 37,459 | ||||||||||||||||||
2012 | — | — | — | 35,193 | 35,193 | ||||||||||||||||||
Revenue by product and service category | Revenue by product and service category for the years ended December 31 was as follows: | ||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||
Checks, including contract settlements | $ | 870,910 | $ | 884,605 | $ | 890,018 | |||||||||||||||||
Marketing solutions and other services | 427,098 | 343,006 | 285,520 | ||||||||||||||||||||
Forms | 216,842 | 200,560 | 200,379 | ||||||||||||||||||||
Accessories and other products | 159,232 | 156,653 | 139,000 | ||||||||||||||||||||
Total revenue | $ | 1,674,082 | $ | 1,584,824 | $ | 1,514,917 | |||||||||||||||||
Geographic information | The following information as of and for the years ended December 31 is based on the geographic locations of our subsidiaries: | ||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||
Total revenue from external customers: | |||||||||||||||||||||||
United States | $ | 1,593,898 | $ | 1,501,176 | $ | 1,427,593 | |||||||||||||||||
Foreign, primarily Canada | 80,184 | 83,648 | 87,324 | ||||||||||||||||||||
Total revenue | $ | 1,674,082 | $ | 1,584,824 | $ | 1,514,917 | |||||||||||||||||
Long-lived assets(1): | |||||||||||||||||||||||
United States | $ | 1,310,830 | $ | 1,191,084 | $ | 1,131,525 | |||||||||||||||||
Foreign, primarily Canada | 12,220 | 14,681 | 14,274 | ||||||||||||||||||||
Total long-lived assets | $ | 1,323,050 | $ | 1,205,765 | $ | 1,145,799 | |||||||||||||||||
(1) Long-lived assets consist of total assets less current assets and long-term investments. |
Supplemental_guarantor_financi1
Supplemental guarantor financial information (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Supplemental guarantor financial information [Abstract] | |||||||||||||||||||||
Condensed Consolidating Balance Sheets | Deluxe Corporation | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
(in thousands) | Deluxe Corporation | Guarantor subsidiaries | Non-guarantor subsidiaries | Eliminations | Total | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 8,335 | $ | 4,342 | $ | 52,193 | $ | (3,329 | ) | $ | 61,541 | ||||||||||
Trade accounts receivable, net | — | 100,197 | 13,459 | — | 113,656 | ||||||||||||||||
Inventories and supplies | — | 34,097 | 5,314 | — | 39,411 | ||||||||||||||||
Deferred income taxes | 8,929 | 1,182 | 48 | — | 10,159 | ||||||||||||||||
Funds held for customers | — | — | 43,604 | — | 43,604 | ||||||||||||||||
Other current assets | 8,538 | 38,912 | 3,069 | — | 50,519 | ||||||||||||||||
Total current assets | 25,802 | 178,730 | 117,687 | (3,329 | ) | 318,890 | |||||||||||||||
Deferred income taxes | 660 | — | 1,411 | (660 | ) | 1,411 | |||||||||||||||
Long-term investments | 38,623 | 7,828 | — | — | 46,451 | ||||||||||||||||
Property, plant and equipment, net | 4,868 | 76,306 | 6,449 | — | 87,623 | ||||||||||||||||
Assets held for sale | — | 3,102 | 23,717 | — | 26,819 | ||||||||||||||||
Intangibles, net | 987 | 203,967 | 2,226 | — | 207,180 | ||||||||||||||||
Goodwill | — | 866,659 | 1,717 | — | 868,376 | ||||||||||||||||
Investments in consolidated subsidiaries | 1,268,918 | 90,960 | — | (1,359,878 | ) | — | |||||||||||||||
Intercompany receivable | — | 82,758 | 536 | (83,294 | ) | — | |||||||||||||||
Other non-current assets | 9,675 | 121,549 | 417 | — | 131,641 | ||||||||||||||||
Total assets | $ | 1,349,533 | $ | 1,631,859 | $ | 154,160 | $ | (1,447,161 | ) | $ | 1,688,391 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable | $ | 13,792 | $ | 73,380 | $ | 3,373 | $ | (3,329 | ) | $ | 87,216 | ||||||||||
Accrued liabilities | 26,278 | 141,816 | 51,027 | — | 219,121 | ||||||||||||||||
Short-term borrowings | 160,000 | — | — | — | 160,000 | ||||||||||||||||
Long-term debt due within one year | 903 | — | 8 | — | 911 | ||||||||||||||||
Total current liabilities | 200,973 | 215,196 | 54,408 | (3,329 | ) | 467,248 | |||||||||||||||
Long-term debt | 393,387 | — | 14 | — | 393,401 | ||||||||||||||||
Deferred income taxes | — | 96,498 | — | (660 | ) | 95,838 | |||||||||||||||
Intercompany payable | 83,294 | — | — | (83,294 | ) | — | |||||||||||||||
Other non-current liabilities | 24,382 | 51,247 | 8,778 | — | 84,407 | ||||||||||||||||
Total shareholders' equity | 647,497 | 1,268,918 | 90,960 | (1,359,878 | ) | 647,497 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 1,349,533 | $ | 1,631,859 | $ | 154,160 | $ | (1,447,161 | ) | $ | 1,688,391 | ||||||||||
Deluxe Corporation | |||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
(in thousands) | Deluxe Corporation | Guarantor subsidiaries | Non-guarantor subsidiaries | Eliminations | Total | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 71,972 | $ | 6,991 | $ | 45,229 | $ | (3,103 | ) | $ | 121,089 | ||||||||||
Trade accounts receivable, net | — | 70,317 | 17,732 | — | 88,049 | ||||||||||||||||
Inventories and supplies | — | 24,173 | 4,793 | — | 28,966 | ||||||||||||||||
Deferred income taxes | 2,698 | 4,198 | 50 | — | 6,946 | ||||||||||||||||
Funds held for customers | — | — | 42,425 | — | 42,425 | ||||||||||||||||
Other current assets | 8,266 | 20,118 | 3,454 | — | 31,838 | ||||||||||||||||
Total current assets | 82,936 | 125,797 | 113,683 | (3,103 | ) | 319,313 | |||||||||||||||
Deferred income taxes | — | — | 1,851 | — | 1,851 | ||||||||||||||||
Long-term investments | 35,155 | 9,296 | — | — | 44,451 | ||||||||||||||||
Property, plant and equipment, net | — | 93,472 | 7,871 | — | 101,343 | ||||||||||||||||
Assets held for sale | — | 4,046 | 21,405 | — | 25,451 | ||||||||||||||||
Intangibles, net | — | 151,361 | 2,215 | — | 153,576 | ||||||||||||||||
Goodwill | — | 820,898 | 1,879 | — | 822,777 | ||||||||||||||||
Investments in consolidated subsidiaries | 1,155,705 | 82,918 | — | (1,238,623 | ) | — | |||||||||||||||
Intercompany receivable | — | 39,192 | 1,373 | (40,565 | ) | — | |||||||||||||||
Other non-current assets | 8,077 | 92,461 | 229 | — | 100,767 | ||||||||||||||||
Total assets | $ | 1,281,873 | $ | 1,419,441 | $ | 150,506 | $ | (1,282,291 | ) | $ | 1,569,529 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable | $ | 11,831 | $ | 54,655 | $ | 8,109 | $ | (3,103 | ) | $ | 71,492 | ||||||||||
Accrued liabilities | 13,794 | 97,577 | 51,619 | — | 162,990 | ||||||||||||||||
Long-term debt due within one year | 255,589 | — | — | — | 255,589 | ||||||||||||||||
Total current liabilities | 281,214 | 152,232 | 59,728 | (3,103 | ) | 490,071 | |||||||||||||||
Long-term debt | 385,115 | — | — | — | 385,115 | ||||||||||||||||
Deferred income taxes | 2,821 | 79,993 | — | — | 82,814 | ||||||||||||||||
Intercompany payable | 40,565 | — | — | (40,565 | ) | — | |||||||||||||||
Other non-current liabilities | 21,701 | 31,511 | 7,860 | — | 61,072 | ||||||||||||||||
Total shareholders' equity | 550,457 | 1,155,705 | 82,918 | (1,238,623 | ) | 550,457 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 1,281,873 | $ | 1,419,441 | $ | 150,506 | $ | (1,282,291 | ) | $ | 1,569,529 | ||||||||||
Condensed Consolidating Statements of Comprehensive Income | Deluxe Corporation | ||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
(in thousands) | Deluxe Corporation | Guarantor subsidiaries | Non-guarantor subsidiaries | Eliminations | Total | ||||||||||||||||
Product revenue | $ | — | $ | 1,311,729 | $ | 99,129 | $ | — | $ | 1,410,858 | |||||||||||
Service revenue | 78,019 | 237,712 | 30,047 | (82,554 | ) | 263,224 | |||||||||||||||
Total revenue | 78,019 | 1,549,441 | 129,176 | (82,554 | ) | 1,674,082 | |||||||||||||||
Cost of products | — | (449,603 | ) | (52,268 | ) | — | (501,871 | ) | |||||||||||||
Cost of services | (83,982 | ) | (95,776 | ) | (9,693 | ) | 85,044 | (104,407 | ) | ||||||||||||
Total cost of revenue | (83,982 | ) | (545,379 | ) | (61,961 | ) | 85,044 | (606,278 | ) | ||||||||||||
Gross profit | (5,963 | ) | 1,004,062 | 67,215 | 2,490 | 1,067,804 | |||||||||||||||
Operating expenses | — | (677,767 | ) | (47,711 | ) | (2,490 | ) | (727,968 | ) | ||||||||||||
Asset impairment charge | — | (6,468 | ) | — | — | (6,468 | ) | ||||||||||||||
Net loss on sale of facility | — | (735 | ) | — | — | (735 | ) | ||||||||||||||
Operating income | (5,963 | ) | 319,092 | 19,504 | — | 332,633 | |||||||||||||||
Interest expense | (36,368 | ) | (12,157 | ) | — | 11,996 | (36,529 | ) | |||||||||||||
Other income | 9,976 | 2,496 | 601 | (11,996 | ) | 1,077 | |||||||||||||||
(Loss) income before income taxes | (32,355 | ) | 309,431 | 20,105 | — | 297,181 | |||||||||||||||
Income tax benefit (provision) | 17,445 | (109,289 | ) | (5,543 | ) | — | (97,387 | ) | |||||||||||||
(Loss) income before equity in earnings of consolidated subsidiaries | (14,910 | ) | 200,142 | 14,562 | — | 199,794 | |||||||||||||||
Equity in earnings of consolidated subsidiaries | 214,704 | 14,562 | — | (229,266 | ) | — | |||||||||||||||
Net income | $ | 199,794 | $ | 214,704 | $ | 14,562 | $ | (229,266 | ) | $ | 199,794 | ||||||||||
Comprehensive income | $ | 196,880 | $ | 210,756 | $ | 8,398 | $ | (219,154 | ) | $ | 196,880 | ||||||||||
Deluxe Corporation | |||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
(in thousands) | Deluxe Corporation | Guarantor subsidiaries | Non-guarantor subsidiaries | Eliminations | Total | ||||||||||||||||
Product revenue | $ | — | $ | 1,293,257 | $ | 76,454 | $ | — | $ | 1,369,711 | |||||||||||
Service revenue | 9,042 | 188,767 | 34,962 | (17,658 | ) | 215,113 | |||||||||||||||
Total revenue | 9,042 | 1,482,024 | 111,416 | (17,658 | ) | 1,584,824 | |||||||||||||||
Cost of products | — | (429,432 | ) | (34,055 | ) | — | (463,487 | ) | |||||||||||||
Cost of services | (7,597 | ) | (85,693 | ) | (12,532 | ) | 8,193 | (97,629 | ) | ||||||||||||
Total cost of revenue | (7,597 | ) | (515,125 | ) | (46,587 | ) | 8,193 | (561,116 | ) | ||||||||||||
Gross profit | 1,445 | 966,899 | 64,829 | (9,465 | ) | 1,023,708 | |||||||||||||||
Operating expenses | — | (664,218 | ) | (46,041 | ) | 9,465 | (700,794 | ) | |||||||||||||
Asset impairment charge | — | (5,000 | ) | — | — | (5,000 | ) | ||||||||||||||
Operating income | 1,445 | 297,681 | 18,788 | — | 317,914 | ||||||||||||||||
Interest expense | (38,236 | ) | (8,442 | ) | (3 | ) | 8,380 | (38,301 | ) | ||||||||||||
Other income | 7,283 | 2,027 | 516 | (8,380 | ) | 1,446 | |||||||||||||||
(Loss) income before income taxes | (29,508 | ) | 291,266 | 19,301 | — | 281,059 | |||||||||||||||
Income tax benefit (provision) | 16,597 | (105,812 | ) | (5,192 | ) | — | (94,407 | ) | |||||||||||||
(Loss) income before equity in earnings of consolidated subsidiaries | (12,911 | ) | 185,454 | 14,109 | — | 186,652 | |||||||||||||||
Equity in earnings of consolidated subsidiaries | 199,563 | 14,109 | — | (213,672 | ) | — | |||||||||||||||
Net income | $ | 186,652 | $ | 199,563 | $ | 14,109 | $ | (213,672 | ) | $ | 186,652 | ||||||||||
Comprehensive income | $ | 193,875 | $ | 205,595 | $ | 9,862 | $ | (215,457 | ) | $ | 193,875 | ||||||||||
Deluxe Corporation | |||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
(in thousands) | Deluxe Corporation | Guarantor subsidiaries | Non-guarantor subsidiaries | Eliminations | Total | ||||||||||||||||
Product revenue | $ | — | $ | 1,283,471 | $ | 62,458 | $ | — | $ | 1,345,929 | |||||||||||
Service revenue | 8,902 | 150,758 | 26,625 | (17,297 | ) | 168,988 | |||||||||||||||
Total revenue | 8,902 | 1,434,229 | 89,083 | (17,297 | ) | 1,514,917 | |||||||||||||||
Cost of products | — | (422,836 | ) | (24,158 | ) | — | (446,994 | ) | |||||||||||||
Cost of services | (5,637 | ) | (68,339 | ) | (9,042 | ) | 5,637 | (77,381 | ) | ||||||||||||
Total cost of revenue | (5,637 | ) | (491,175 | ) | (33,200 | ) | 5,637 | (524,375 | ) | ||||||||||||
Gross profit | 3,265 | 943,054 | 55,883 | (11,660 | ) | 990,542 | |||||||||||||||
Operating expenses | — | (654,286 | ) | (45,760 | ) | 11,660 | (688,386 | ) | |||||||||||||
Net loss on sale of facility | — | (128 | ) | — | — | (128 | ) | ||||||||||||||
Operating income | 3,265 | 288,640 | 10,123 | — | 302,028 | ||||||||||||||||
Loss on early debt extinguishment | (5,258 | ) | — | — | — | (5,258 | ) | ||||||||||||||
Interest expense | (46,767 | ) | (12,819 | ) | (7 | ) | 12,746 | (46,847 | ) | ||||||||||||
Other income (expense) | 11,721 | (1,341 | ) | 3,196 | (12,746 | ) | 830 | ||||||||||||||
(Loss) income before income taxes | (37,039 | ) | 274,480 | 13,312 | — | 250,753 | |||||||||||||||
Income tax benefit (provision) | 19,690 | (99,674 | ) | (277 | ) | — | (80,261 | ) | |||||||||||||
(Loss) income before equity in earnings of consolidated subsidiaries | (17,349 | ) | 174,806 | 13,035 | — | 170,492 | |||||||||||||||
Equity in earnings of consolidated subsidiaries | 187,841 | 13,035 | — | (200,876 | ) | — | |||||||||||||||
Net income | $ | 170,492 | $ | 187,841 | $ | 13,035 | $ | (200,876 | ) | $ | 170,492 | ||||||||||
Comprehensive income | $ | 189,246 | $ | 205,245 | $ | 13,704 | $ | (218,949 | ) | $ | 189,246 | ||||||||||
Condensed Consolidating Statements of Cash Flows | Deluxe Corporation | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
(in thousands) | Deluxe Corporation | Guarantor subsidiaries | Non-guarantor subsidiaries | Eliminations | Total | ||||||||||||||||
Net cash (used) provided by operating activities | $ | (12,298 | ) | $ | 278,281 | $ | 14,638 | $ | (226 | ) | $ | 280,395 | |||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Purchases of capital assets | (1,269 | ) | (38,118 | ) | (1,732 | ) | — | (41,119 | ) | ||||||||||||
Payments for acquisitions, net of cash acquired | (89,824 | ) | (15,205 | ) | — | — | (105,029 | ) | |||||||||||||
Loans to distributors | — | (50 | ) | — | — | (50 | ) | ||||||||||||||
Proceeds from company-owned life insurance policies | 897 | — | — | — | 897 | ||||||||||||||||
Proceeds from sale of facility | — | 8,451 | — | — | 8,451 | ||||||||||||||||
Other | (432 | ) | 1,225 | 14 | — | 807 | |||||||||||||||
Net cash used by investing activities | (90,628 | ) | (43,697 | ) | (1,718 | ) | — | (136,043 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Net proceeds from short-term borrowings | 160,000 | (125 | ) | — | — | 159,875 | |||||||||||||||
Payments on long-term debt, including costs of debt reacquisition | (254,376 | ) | (20 | ) | (7 | ) | — | (254,403 | ) | ||||||||||||
Payments for debt issue costs | (1,085 | ) | — | — | — | (1,085 | ) | ||||||||||||||
Proceeds from issuing shares under employee plans | 9,148 | — | — | — | 9,148 | ||||||||||||||||
Excess tax benefit from share-based employee awards | 4,992 | — | — | — | 4,992 | ||||||||||||||||
Payments for common shares repurchased | (60,119 | ) | — | — | — | (60,119 | ) | ||||||||||||||
Cash dividends paid to shareholders | (57,603 | ) | — | — | — | (57,603 | ) | ||||||||||||||
Advances from (to) consolidated subsidiaries | 238,332 | (236,938 | ) | (1,394 | ) | — | — | ||||||||||||||
Other | — | (150 | ) | — | — | (150 | ) | ||||||||||||||
Net cash provided (used) by financing activities | 39,289 | (237,233 | ) | (1,401 | ) | — | (199,345 | ) | |||||||||||||
Effect of exchange rate change on cash | — | — | (4,555 | ) | — | (4,555 | ) | ||||||||||||||
Net change in cash and cash equivalents | (63,637 | ) | (2,649 | ) | 6,964 | (226 | ) | (59,548 | ) | ||||||||||||
Cash and cash equivalents, beginning of year | 71,972 | 6,991 | 45,229 | (3,103 | ) | 121,089 | |||||||||||||||
Cash and cash equivalents, end of year | $ | 8,335 | $ | 4,342 | $ | 52,193 | $ | (3,329 | ) | $ | 61,541 | ||||||||||
Deluxe Corporation | |||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
(in thousands) | Deluxe Corporation | Guarantor subsidiaries | Non-guarantor subsidiaries | Eliminations | Total | ||||||||||||||||
Net cash (used) provided by operating activities | $ | (7,462 | ) | $ | 243,906 | $ | 24,160 | $ | 898 | $ | 261,502 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Purchases of capital assets | — | (32,659 | ) | (4,800 | ) | — | (37,459 | ) | |||||||||||||
Payments for acquisitions, net of cash acquired | — | (69,709 | ) | — | — | (69,709 | ) | ||||||||||||||
Loans to distributors | — | (778 | ) | — | — | (778 | ) | ||||||||||||||
Proceeds from company-owned life insurance policies | 3,641 | 958 | — | — | 4,599 | ||||||||||||||||
Other | 1,181 | 1,104 | 12 | — | 2,297 | ||||||||||||||||
Net cash provided (used) by investing activities | 4,822 | (101,084 | ) | (4,788 | ) | — | (101,050 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Payments on long-term debt, including costs of debt reacquisition | (224 | ) | — | (1,331 | ) | — | (1,555 | ) | |||||||||||||
Payments for debt issue costs | (236 | ) | — | — | — | (236 | ) | ||||||||||||||
Proceeds from issuing shares under employee plans | 15,948 | — | — | — | 15,948 | ||||||||||||||||
Excess tax benefit from share-based employee awards | 3,055 | — | — | — | 3,055 | ||||||||||||||||
Payments for common shares repurchased | (48,798 | ) | — | — | — | (48,798 | ) | ||||||||||||||
Cash dividends paid to shareholders | (50,711 | ) | — | — | — | (50,711 | ) | ||||||||||||||
Advances from (to) consolidated subsidiaries | 140,716 | (139,059 | ) | (1,657 | ) | — | — | ||||||||||||||
Net cash provided (used) by financing activities | 59,750 | (139,059 | ) | (2,988 | ) | — | (82,297 | ) | |||||||||||||
Effect of exchange rate change on cash | — | — | (2,501 | ) | — | (2,501 | ) | ||||||||||||||
Net change in cash and cash equivalents | 57,110 | 3,763 | 13,883 | 898 | 75,654 | ||||||||||||||||
Cash and cash equivalents, beginning of year | 14,862 | 3,228 | 31,346 | (4,001 | ) | 45,435 | |||||||||||||||
Cash and cash equivalents, end of year | $ | 71,972 | $ | 6,991 | $ | 45,229 | $ | (3,103 | ) | $ | 121,089 | ||||||||||
Deluxe Corporation | |||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
(in thousands) | Deluxe Corporation | Guarantor subsidiaries | Non-guarantor subsidiaries | Eliminations | Total | ||||||||||||||||
Net cash (used) provided by operating activities | $ | (10,325 | ) | $ | 244,091 | $ | 10,311 | $ | — | $ | 244,077 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Purchases of capital assets | — | (31,561 | ) | (3,632 | ) | — | (35,193 | ) | |||||||||||||
Payments for acquisitions, net of cash acquired | — | (34,172 | ) | — | — | (34,172 | ) | ||||||||||||||
Loans to distributors | — | (3,227 | ) | (60 | ) | — | (3,287 | ) | |||||||||||||
Proceeds from sale of facility | — | 2,613 | — | — | 2,613 | ||||||||||||||||
Other | 379 | 1,162 | (15 | ) | — | 1,526 | |||||||||||||||
Net cash provided (used) by investing activities | 379 | (65,185 | ) | (3,707 | ) | — | (68,513 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Payments on long-term debt, including costs of debt reacquisition | (288,938 | ) | — | — | — | (288,938 | ) | ||||||||||||||
Proceeds from issuing long-term debt | 200,000 | — | — | — | 200,000 | ||||||||||||||||
Payments for debt issue costs | (4,504 | ) | — | — | — | (4,504 | ) | ||||||||||||||
Change in book overdrafts | (2,426 | ) | 3,827 | — | (4,001 | ) | (2,600 | ) | |||||||||||||
Proceeds from issuing shares under employee plans | 12,320 | — | — | — | 12,320 | ||||||||||||||||
Excess tax benefit from share-based employee awards | 2,285 | — | — | — | 2,285 | ||||||||||||||||
Payments for common shares repurchased | (27,155 | ) | — | — | — | (27,155 | ) | ||||||||||||||
Cash dividends paid to shareholders | (50,918 | ) | — | — | — | (50,918 | ) | ||||||||||||||
Advances from (to) consolidated subsidiaries | 181,097 | (181,166 | ) | 69 | — | — | |||||||||||||||
Net cash provided (used) by financing activities | 21,761 | (177,339 | ) | 69 | (4,001 | ) | (159,510 | ) | |||||||||||||
Effect of exchange rate change on cash | — | — | 694 | — | 694 | ||||||||||||||||
Net change in cash and cash equivalents | 11,815 | 1,567 | 7,367 | (4,001 | ) | 16,748 | |||||||||||||||
Cash and cash equivalents, beginning of year | 3,047 | 1,661 | 23,979 | — | 28,687 | ||||||||||||||||
Cash and cash equivalents, end of year | $ | 14,862 | $ | 3,228 | $ | 31,346 | $ | (4,001 | ) | $ | 45,435 | ||||||||||
SUMMARIZED_QUARTERLY_FINANCIAL1
SUMMARIZED QUARTERLY FINANCIAL DATA (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||
Summarized Quarterly Financial Data | DELUXE CORPORATION | ||||||||||||||||
SUMMARIZED QUARTERLY FINANCIAL DATA (Unaudited) | |||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
2014 Quarter Ended | |||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
Total revenue | $ | 406,955 | $ | 405,410 | $ | 413,204 | $ | 448,513 | |||||||||
Gross profit | 262,027 | 259,519 | 263,054 | 283,204 | |||||||||||||
Net income | 47,324 | 50,076 | 44,431 | 57,963 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | 0.94 | 1 | 0.89 | 1.16 | |||||||||||||
Diluted | 0.93 | 0.99 | 0.88 | 1.16 | |||||||||||||
Cash dividends per share | 0.25 | 0.3 | 0.3 | 0.3 | |||||||||||||
2013 Quarter Ended | |||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
Total revenue | $ | 387,553 | $ | 381,433 | $ | 398,080 | $ | 417,758 | |||||||||
Gross profit | 254,256 | 247,886 | 255,857 | 265,709 | |||||||||||||
Net income | 45,875 | 48,152 | 46,903 | 45,722 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | 0.9 | 0.95 | 0.93 | 0.9 | |||||||||||||
Diluted | 0.89 | 0.94 | 0.92 | 0.9 | |||||||||||||
Cash dividends per share | 0.25 | 0.25 | 0.25 | 0.25 | |||||||||||||
Significant_accounting_policie2
Significant accounting policies (cash and cash equivalents, trade accounts receivable, funds held for customers and long-term investments) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash and cash equivalents | ||
Maximum maturity of cash equivalents | 3 months | |
Trade accounts receivable | ||
Threshold period for write-off of trade accounts receivable | 1 year | |
Long-term investments | ||
Long-term investment in mutual funds | $2,384 | $2,407 |
Significant_accounting_policie3
Significant accounting policies (property, plant and equipment) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Building [Member] | |
Property, plant and equipment [Line Items] | |
Useful life | 40 years |
Machinery and equipment [Member] | Minimum [Member] | |
Property, plant and equipment [Line Items] | |
Useful life | 1 year |
Machinery and equipment [Member] | Maximum [Member] | |
Property, plant and equipment [Line Items] | |
Useful life | 11 years |
Machinery and equipment [Member] | Weighted-average [Member] | |
Property, plant and equipment [Line Items] | |
Useful life | 8 years |
Significant_accounting_policie4
Significant accounting policies (intangibles and impairment of indefinite-lived intangibles and goodwill) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Impairment of indefinite-lived intangibles and goodwill | |||
Date of annual impairment test | 31-Jul | ||
Impairment charges, indefinite-lived intangibles | $0 | $0 | $0 |
Period of revenue projection for goodwill impairment analysis | 5 years | ||
Impairment charges, goodwill | $0 | $0 | $0 |
Minimum [Member] | |||
Amortizable intangibles [Line Items] | |||
Useful life | 1 year | ||
Maximum [Member] | |||
Amortizable intangibles [Line Items] | |||
Useful life | 20 years | ||
Weighted-average [Member] | |||
Amortizable intangibles [Line Items] | |||
Useful life | 6 years |
Significant_accounting_policie5
Significant accounting policies (contract acquisition costs) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum [Member] | |
Contract acquisition costs [Line Items] | |
Amortization period | 1 year |
Maximum [Member] | |
Contract acquisition costs [Line Items] | |
Amortization period | 10 years |
Weighted-average [Member] | |
Contract acquisition costs [Line Items] | |
Amortization period | 6 years |
Significant_accounting_policie6
Significant accounting policies (advertising costs and loans to distributors) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Advertising costs [Line Items] | |||
Advertising expense | $91,937 | $93,872 | $100,594 |
Loans to distributors | |||
Loans to distributors past due | $0 | $0 | |
Maximum [Member] | |||
Advertising costs [Line Items] | |||
Deferred advertising costs amortization period | 18 months | ||
Small Business Services [Member] | Actual [Member] | |||
Advertising costs [Line Items] | |||
Deferred advertising costs amortization period | 6 months | ||
Direct Checks [Member] | |||
Advertising costs [Line Items] | |||
Percentage of deferred advertising costs expensed within six months | 82.00% |
Significant_accounting_policie7
Significant accounting policies (income taxes, revenue recognition, employee share-based compensation and recently adopted accounting pronouncements) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Income taxes | |
Measurement of tax benefit, minimum percentage tax benefit must be likely to be realized | 50.00% |
Revenue recognition | |
Costs and earnings in excess of billings | $8,407 |
Billings in excess of costs and earnings | 708 |
Employee share-based compensation | |
Employee stock purchase plan discount | 15.00% |
Employee stock purchase plan purchase period | 6 months |
Recently adopted accounting pronouncements | |
Effect of adoption, increase in non-current deferred income tax liabilities and decrease in other non-current liabilities | $669 |
Supplemental_balance_sheet_and2
Supplemental balance sheet and cash flow information (trade accounts receivable, inventories and supplies) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Trade accounts receivable | |||
Trade accounts receivable - gross | $117,991 | $91,910 | |
Allowances for uncollectible accounts | -4,335 | -3,861 | -3,912 |
Trade accounts receivable - net | 113,656 | 88,049 | |
Allowances for uncollectible accounts | |||
Balance, beginning of year | 3,861 | 3,912 | 4,007 |
Bad debt expense | 3,994 | 3,722 | 3,749 |
Write-offs, net of recoveries | -3,520 | -3,773 | -3,844 |
Balance, end of year | 4,335 | 3,861 | 3,912 |
Inventories and supplies | |||
Raw materials | 5,899 | 5,426 | |
Semi-finished goods | 8,990 | 8,361 | |
Finished goods | 21,298 | 11,948 | |
Supplies | 3,224 | 3,231 | |
Inventories and supplies | $39,411 | $28,966 |
Supplemental_balance_sheet_and3
Supplemental balance sheet and cash flow information (available-for-sale securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Available-for-sale securities [Line Items] | ||||
Cost | $19,745 | $87,125 | ||
Gross unrealized gains | 0 | 0 | ||
Gross unrealized losses | -120 | -343 | ||
Total available-for-sale securities | 19,625 | 86,782 | ||
Expected maturities of available-for-sale securities | ||||
Due in one year or less | 10,601 | |||
Due in two to five years | 6,259 | |||
Due in six to ten years | 2,765 | |||
Total available-for-sale securities | 19,625 | 86,782 | ||
Funds held for customers [Member] | ||||
Available-for-sale securities [Line Items] | ||||
Cost | 17,850 | [1] | 15,079 | [2] |
Gross unrealized gains | 0 | [1] | 0 | [2] |
Gross unrealized losses | -120 | [1] | -343 | [2] |
Total available-for-sale securities | 17,730 | [1] | 14,736 | [2] |
Funds held for customers, cash | 25,874 | 27,689 | ||
Expected maturities of available-for-sale securities | ||||
Total available-for-sale securities | 17,730 | [1] | 14,736 | [2] |
Cash equivalents [Member] | ||||
Available-for-sale securities [Line Items] | ||||
Total available-for-sale securities | 70,001 | |||
Expected maturities of available-for-sale securities | ||||
Total available-for-sale securities | 70,001 | |||
Other current assets [Member] | ||||
Available-for-sale securities [Line Items] | ||||
Total available-for-sale securities | 1,895 | 2,045 | ||
Expected maturities of available-for-sale securities | ||||
Total available-for-sale securities | 1,895 | 2,045 | ||
Canadian and provincial government securities [Member] | Funds held for customers [Member] | ||||
Available-for-sale securities [Line Items] | ||||
Cost | 9,245 | 9,901 | ||
Gross unrealized gains | 0 | 0 | ||
Gross unrealized losses | -120 | -343 | ||
Total available-for-sale securities | 9,125 | 9,558 | ||
Expected maturities of available-for-sale securities | ||||
Total available-for-sale securities | 9,125 | 9,558 | ||
Canadian guaranteed investment certificate [Member} | Funds held for customers [Member] | ||||
Available-for-sale securities [Line Items] | ||||
Cost | 8,605 | 5,178 | ||
Gross unrealized gains | 0 | 0 | ||
Gross unrealized losses | 0 | 0 | ||
Total available-for-sale securities | 8,605 | 5,178 | ||
Expected maturities of available-for-sale securities | ||||
Total available-for-sale securities | 8,605 | 5,178 | ||
Money market securities [Member] | United States [Member] | Cash equivalents [Member] | ||||
Available-for-sale securities [Line Items] | ||||
Cost | 70,001 | |||
Gross unrealized gains | 0 | |||
Gross unrealized losses | 0 | |||
Total available-for-sale securities | 70,001 | |||
Expected maturities of available-for-sale securities | ||||
Total available-for-sale securities | 70,001 | |||
Money market securities [Member] | Canadian | Other current assets [Member] | ||||
Available-for-sale securities [Line Items] | ||||
Cost | 1,895 | 2,045 | ||
Gross unrealized gains | 0 | 0 | ||
Gross unrealized losses | 0 | 0 | ||
Total available-for-sale securities | 1,895 | 2,045 | ||
Expected maturities of available-for-sale securities | ||||
Total available-for-sale securities | $1,895 | $2,045 | ||
[1] | Funds held for customers, as reported on the consolidated balance sheet as of DecemberB 31, 2014, also included cash of $25,874. | |||
[2] | Funds held for customers, as reported on the consolidated balance sheet as of DecemberB 31, 2013, also included cash of $27,689. |
Supplemental_balance_sheet_and4
Supplemental balance sheet and cash flow information (property, plant and equipment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, plant and equipment [Line Items] | ||
Gross carrying amount | $436,153 | $462,269 |
Accumulated depreciation | -348,530 | -360,926 |
Net carrying amount | 87,623 | 101,343 |
Land and improvements [Member] | ||
Property, plant and equipment [Line Items] | ||
Gross carrying amount | 28,367 | 33,951 |
Accumulated depreciation | -7,612 | -9,445 |
Net carrying amount | 20,755 | 24,506 |
Buildings and improvements [Member] | ||
Property, plant and equipment [Line Items] | ||
Gross carrying amount | 109,307 | 125,655 |
Accumulated depreciation | -69,882 | -76,995 |
Net carrying amount | 39,425 | 48,660 |
Machinery and equipment [Member] | ||
Property, plant and equipment [Line Items] | ||
Gross carrying amount | 298,479 | 302,663 |
Accumulated depreciation | -271,036 | -274,486 |
Net carrying amount | $27,443 | $28,177 |
Supplemental_balance_sheet_and5
Supplemental balance sheet and cash flow information (assets held for sale/facility sales) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets held for sale/facility sales [Line Items] | |||
Net loss on sales of facilities | $735 | $0 | $128 |
Colorado Springs, Colorado facility [Member] | |||
Assets held for sale/facility sales [Line Items] | |||
Proceeds from sale of facility | 8,451 | ||
Net loss on sales of facilities | 735 | ||
Assets held for sale [Member] | Small business distributors [Member] | |||
Assets held for sale/facility sales [Line Items] | |||
Current assets | 687 | 727 | |
Intangibles | 25,926 | 24,603 | |
Other non-current assets | 893 | 848 | |
Accrued liabilities | -1,058 | -733 | |
Non-current deferred income tax liabilities | -8,774 | -7,821 | |
Other non-current liabilities | 0 | -32 | |
Net assets held for sale | 17,674 | 17,592 | |
Net gain on dispositions | 430 | ||
Assets held for sale [Member] | Thorofare, New Jersey facility [Member] | |||
Assets held for sale/facility sales [Line Items] | |||
Proceeds from sale of facility | 2,613 | ||
Net loss on sales of facilities | $128 |
Supplemental_balance_sheet_and6
Supplemental balance sheet and cash flow information (intangibles) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Intangibles [Line Items] | |||
Gross carrying amount | $595,488 | $499,662 | |
Accumulated amortization | -388,308 | -346,086 | |
Net carrying amount | 207,180 | 153,576 | |
Amortization of intangibles | 49,075 | 46,651 | 45,730 |
Estimated amortization expense | |||
2015 | 45,317 | ||
2016 | 32,985 | ||
2017 | 20,848 | ||
2018 | 15,343 | ||
2019 | 12,639 | ||
Indefinite-lived intangibles [Member] | Trade names [Member] | |||
Intangibles [Line Items] | |||
Gross carrying amount | 19,100 | 19,100 | |
Net carrying amount | 19,100 | 19,100 | |
Amortizable intangibles [Member] | |||
Intangibles [Line Items] | |||
Gross carrying amount | 576,388 | 480,562 | |
Accumulated amortization | -388,308 | -346,086 | |
Net carrying amount | 188,080 | 134,476 | |
Amortizable intangibles [Member] | Internal-use software [Member] | |||
Intangibles [Line Items] | |||
Gross carrying amount | 364,229 | 339,995 | |
Accumulated amortization | -303,340 | -275,159 | |
Net carrying amount | 60,889 | 64,836 | |
Amortization of internal-use software | 34,282 | 32,555 | 30,982 |
Amortizable intangibles [Member] | Customer lists/relationships [Member] | |||
Intangibles [Line Items] | |||
Gross carrying amount | 106,218 | 63,282 | |
Accumulated amortization | -40,097 | -31,606 | |
Net carrying amount | 66,121 | 31,676 | |
Amortizable intangibles [Member] | Trade names [Member] | |||
Intangibles [Line Items] | |||
Gross carrying amount | 69,281 | 67,961 | |
Accumulated amortization | -37,623 | -33,642 | |
Net carrying amount | 31,658 | 34,319 | |
Amortizable intangibles [Member] | Software for sale [Member] | |||
Intangibles [Line Items] | |||
Gross carrying amount | 28,500 | 0 | |
Accumulated amortization | -601 | 0 | |
Net carrying amount | 27,899 | 0 | |
Amortizable intangibles [Member] | Other [Member] | |||
Intangibles [Line Items] | |||
Gross carrying amount | 8,160 | 9,324 | |
Accumulated amortization | -6,647 | -5,679 | |
Net carrying amount | $1,513 | $3,645 |
Supplemental_balance_sheet_and7
Supplemental balance sheet and cash flow information (intangible acquisitions) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Acquired intangibles [Line Items] | |||
Amount | $110,286 | $54,575 | $39,197 |
Weighted-average amortization period (in years) | 7 years | 5 years | 5 years |
Internal-use software [Member] | |||
Acquired intangibles [Line Items] | |||
Amount | 33,867 | 34,455 | 28,097 |
Weighted-average amortization period (in years) | 4 years | 3 years | 4 years |
Customer lists/relationships [Member] | |||
Acquired intangibles [Line Items] | |||
Amount | 45,869 | 16,610 | 10,200 |
Weighted-average amortization period (in years) | 9 years | 8 years | 9 years |
Software for sale [Member] | |||
Acquired intangibles [Line Items] | |||
Amount | 28,500 | 0 | 0 |
Weighted-average amortization period (in years) | 9 years | ||
Trade names [Member] | |||
Acquired intangibles [Line Items] | |||
Amount | 2,000 | 200 | 900 |
Weighted-average amortization period (in years) | 3 years | 2 years | 5 years |
Other [Member] | |||
Acquired intangibles [Line Items] | |||
Amount | $50 | $3,310 | $0 |
Weighted-average amortization period (in years) | 2 years | 4 years |
Supplemental_balance_sheet_and8
Supplemental balance sheet and cash flow information (goodwill) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Jan. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in goodwill | ||||||||
Goodwill, gross, beginning of year | $842,777 | $842,777 | $809,636 | |||||
Accumulated impairment charges, beginning of year | -20,000 | -20,000 | -20,000 | |||||
Goodwill, net of accumulated impairment charges, beginning of year | 822,777 | 822,777 | 789,636 | |||||
Acquisition (Note 5) | 45,521 | 1,615 | 13,080 | 1,459 | 18,735 | |||
Adjustment for acquisition of Destination Rewards, Inc. (Note 5) | -1,375 | |||||||
Currency translation adjustment | -162 | -133 | ||||||
Goodwill, gross, end of period | 842,777 | 888,376 | 842,777 | |||||
Accumulated impairment charges, end of period | -20,000 | -20,000 | -20,000 | |||||
Goodwill, net of accumulated impairment charges, end of period | 822,777 | 868,376 | 822,777 | |||||
VerticalResponse, Inc. [Member] | ||||||||
Changes in goodwill | ||||||||
Acquisition (Note 5) | 18,735 | |||||||
Acton Marketing, LLC [Member] | ||||||||
Changes in goodwill | ||||||||
Acquisition (Note 5) | 1,459 | |||||||
Destination Rewards, Inc. [Member] | ||||||||
Changes in goodwill | ||||||||
Acquisition (Note 5) | 11,705 | |||||||
Adjustment for acquisition of Destination Rewards, Inc. (Note 5) | -1,375 | |||||||
NetClime, Inc. [Member] | ||||||||
Changes in goodwill | ||||||||
Acquisition (Note 5) | 1,615 | |||||||
Wausau Financial Systems, Inc. [Member] | ||||||||
Changes in goodwill | ||||||||
Acquisition (Note 5) | 45,521 | |||||||
Goodwill, net of accumulated impairment charges, end of period | 45,521 | |||||||
Small Business Services [Member] | ||||||||
Changes in goodwill | ||||||||
Goodwill, gross, beginning of year | 652,554 | 652,554 | 633,952 | |||||
Accumulated impairment charges, beginning of year | -20,000 | -20,000 | -20,000 | |||||
Goodwill, net of accumulated impairment charges, beginning of year | 632,554 | 632,554 | 613,952 | |||||
Currency translation adjustment | -162 | -133 | ||||||
Goodwill, gross, end of period | 652,554 | 654,007 | 652,554 | |||||
Accumulated impairment charges, end of period | -20,000 | -20,000 | -20,000 | |||||
Goodwill, net of accumulated impairment charges, end of period | 632,554 | 634,007 | 632,554 | |||||
Small Business Services [Member] | VerticalResponse, Inc. [Member] | ||||||||
Changes in goodwill | ||||||||
Acquisition (Note 5) | 18,735 | |||||||
Small Business Services [Member] | NetClime, Inc. [Member] | ||||||||
Changes in goodwill | ||||||||
Acquisition (Note 5) | 1,615 | |||||||
Financial Services [Member] | ||||||||
Changes in goodwill | ||||||||
Goodwill, gross, beginning of year | 27,178 | |||||||
Accumulated impairment charges, beginning of year | 0 | |||||||
Goodwill, net of accumulated impairment charges, beginning of year | 27,178 | |||||||
Goodwill, gross, end of period | 41,717 | 85,863 | 41,717 | 27,178 | ||||
Accumulated impairment charges, end of period | 0 | 0 | 0 | 0 | ||||
Goodwill, net of accumulated impairment charges, end of period | 41,717 | 85,863 | 41,717 | 27,178 | ||||
Financial Services [Member] | Acton Marketing, LLC [Member] | ||||||||
Changes in goodwill | ||||||||
Acquisition (Note 5) | 1,459 | |||||||
Financial Services [Member] | Destination Rewards, Inc. [Member] | ||||||||
Changes in goodwill | ||||||||
Acquisition (Note 5) | 13,080 | |||||||
Adjustment for acquisition of Destination Rewards, Inc. (Note 5) | -1,375 | |||||||
Financial Services [Member] | Wausau Financial Systems, Inc. [Member] | ||||||||
Changes in goodwill | ||||||||
Acquisition (Note 5) | 45,521 | |||||||
Direct Checks [Member] | ||||||||
Changes in goodwill | ||||||||
Goodwill, gross, beginning of year | 148,506 | |||||||
Accumulated impairment charges, beginning of year | 0 | |||||||
Goodwill, net of accumulated impairment charges, beginning of year | 148,506 | |||||||
Goodwill, gross, end of period | 148,506 | 148,506 | 148,506 | 148,506 | ||||
Accumulated impairment charges, end of period | 0 | 0 | 0 | 0 | ||||
Goodwill, net of accumulated impairment charges, end of period | $148,506 | $148,506 | $148,506 | $148,506 |
Supplemental_balance_sheet_and9
Supplemental balance sheet and cash flow information (other) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Other non-current assets | ||||||
Contract acquisition costs | $74,101 | $35,421 | $43,036 | |||
Postretirement benefit plan asset (Note 12) | 24,243 | 24,981 | ||||
Loans and notes receivable from distributors | 14,583 | 16,162 | ||||
Deferred advertising costs | 8,922 | 10,447 | ||||
Other | 9,792 | 13,756 | ||||
Other non-current assets | 131,641 | 100,767 | ||||
Changes in contract acquisition costs | ||||||
Balance, beginning of year | 35,421 | 43,036 | 55,076 | |||
Additions | 57,225 | [1] | 10,072 | [1] | 5,543 | [1] |
Amortization | -18,105 | -17,197 | -17,110 | |||
Other | -440 | -490 | -473 | |||
Balance, end of year | 74,101 | 35,421 | 43,036 | |||
Contract acquisition payments | 16,567 | 12,133 | 16,952 | |||
Accrued liabilities | ||||||
Deferred revenue | 48,514 | 16,897 | ||||
Funds held for customers | 42,944 | 41,810 | ||||
Performance-based compensation | 38,259 | 29,544 | ||||
Customer rebates | 20,550 | 21,623 | ||||
Contract acquisition costs due within one year | 9,815 | 3,880 | ||||
Restructuring due within one year (Note 8) | 4,276 | 5,609 | ||||
Other | 54,763 | 43,627 | ||||
Accrued liabilities | 219,121 | 162,990 | ||||
Supplemental cash flow information | ||||||
Income taxes paid | 100,639 | 90,322 | 83,875 | |||
Interest paid | $39,946 | $38,676 | $46,514 | |||
[1] | Contract acquisition costs are accrued upon contract execution. Cash payments made for contract acquisition costs were $16,567 for 2014, $12,133 for 2013 and $16,952 for 2012. |
Earnings_per_share_Details
Earnings per share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings per share - basic: | |||||||||||
Net income | $57,963 | $44,431 | $50,076 | $47,324 | $45,722 | $46,903 | $48,152 | $45,875 | $199,794 | $186,652 | $170,492 |
Income allocated to participating securities | -1,075 | -846 | -1,161 | ||||||||
Income available to common shareholders | 198,719 | 185,806 | 169,331 | ||||||||
Weighted-average shares outstanding | 49,827 | 50,550 | 50,775 | ||||||||
Earnings per share - basic | $1.16 | $0.89 | $1 | $0.94 | $0.90 | $0.93 | $0.95 | $0.90 | $3.99 | $3.68 | $3.33 |
Earnings per share - diluted: | |||||||||||
Net income | 57,963 | 44,431 | 50,076 | 47,324 | 45,722 | 46,903 | 48,152 | 45,875 | 199,794 | 186,652 | 170,492 |
Income allocated to participating securities | -1,068 | -840 | -1,156 | ||||||||
Re-measurement of share-based awards classified as liabilities | 183 | 314 | 123 | ||||||||
Income available to common shareholders | $198,909 | $186,126 | $169,459 | ||||||||
Weighted-average shares outstanding | 49,827 | 50,550 | 50,775 | ||||||||
Dilutive impact of potential common shares | 435 | 460 | 301 | ||||||||
Weighted-average shares and potential common shares outstanding | 50,262 | 51,010 | 51,076 | ||||||||
Earnings per share - diluted | $1.16 | $0.88 | $0.99 | $0.93 | $0.90 | $0.92 | $0.94 | $0.89 | $3.96 | $3.65 | $3.32 |
Antidilutive options excluded from calculation | 7 | 12 | 470 |
Other_comprehensive_income_rec
Other comprehensive income (reclassification adjustments) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Reclassification adjustments [Line Items] | ||||||||||||||
Interest expense | ($36,529) | ($38,301) | ($46,847) | |||||||||||
Income tax provision | -97,387 | -94,407 | -80,261 | |||||||||||
Net income | 57,963 | 44,431 | 50,076 | 47,324 | 45,722 | 46,903 | 48,152 | 45,875 | 199,794 | 186,652 | 170,492 | |||
Total reclassifications, net of tax | -2,117 | -3,104 | -2,623 | |||||||||||
Amortization of loss on interest rate locks [Member] | ||||||||||||||
Reclassification adjustments [Line Items] | ||||||||||||||
Total reclassifications, net of tax | -781 | [1] | -1,040 | [1] | -1,110 | [1] | ||||||||
Amortization of postretirement benefit plan items [Member] | ||||||||||||||
Reclassification adjustments [Line Items] | ||||||||||||||
Total reclassifications, net of tax | -1,336 | -2,064 | -1,754 | |||||||||||
Realized gains on available-for-sale securities [Member] | ||||||||||||||
Reclassification adjustments [Line Items] | ||||||||||||||
Total reclassifications, net of tax | 0 | 0 | 241 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss [Member] | ||||||||||||||
Reclassification adjustments [Line Items] | ||||||||||||||
Total reclassifications, net of tax | -2,117 | -3,104 | -2,623 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss [Member] | Amortization of loss on interest rate locks [Member] | ||||||||||||||
Reclassification adjustments [Line Items] | ||||||||||||||
Interest expense | -1,282 | [1] | -1,711 | [1] | -1,786 | [1] | ||||||||
Income tax provision | 501 | 671 | 676 | |||||||||||
Net income | -781 | -1,040 | -1,110 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss [Member] | Amortization of postretirement benefit plan items [Member] | ||||||||||||||
Reclassification adjustments [Line Items] | ||||||||||||||
Prior service credit | 1,421 | [2] | 1,421 | [2] | 3,056 | [2] | ||||||||
Net actuarial loss | -3,418 | [2] | -4,439 | [2] | -5,879 | [2] | ||||||||
Total amortization | -1,997 | [2] | -3,018 | [2] | -2,823 | [2] | ||||||||
Tax benefit | 661 | [2] | 954 | [2] | 1,069 | [2] | ||||||||
Amortization of postretirement benefit plan items, net of tax | -1,336 | [2] | -2,064 | [2] | -1,754 | [2] | ||||||||
Amounts reclassified from accumulated other comprehensive loss [Member] | Realized gains on available-for-sale securities [Member] | ||||||||||||||
Reclassification adjustments [Line Items] | ||||||||||||||
Other income | 0 | 0 | 327 | |||||||||||
Income tax provision | 0 | 0 | 86 | |||||||||||
Net income | $0 | $0 | $241 | |||||||||||
[1] | Relates to interest rate locks executed in 2002 and 2004. Further information regarding these financial instruments can be found in Note 6: Derivative financial instruments. | |||||||||||||
[2] | Amortization of postretirement benefit plan items is included in the computation of net periodic benefit (income) expense. Additional details can be found in Note 12: Postretirement benefits. |
Other_comprehensive_income_acc
Other comprehensive income (accumulated other comprehensive loss) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Accumulated other comprehensive loss [Line Items] | ||||||
Balance, beginning of year | ($33,424) | ($40,647) | ($59,401) | |||
Other comprehensive income (loss) before reclassifications | -5,031 | 4,119 | 16,131 | |||
Amounts reclassified from accumulated other comprehensive loss | 2,117 | 3,104 | 2,623 | |||
Net current-period other comprehensive income (loss) | -2,914 | 7,223 | 18,754 | |||
Balance, end of year | -36,338 | -33,424 | -40,647 | |||
Postretirement benefit plans, net of tax [Member] | ||||||
Accumulated other comprehensive loss [Line Items] | ||||||
Balance, beginning of year | -34,874 | -45,303 | -62,278 | |||
Other comprehensive income (loss) before reclassifications | 1,133 | 8,365 | 15,221 | |||
Amounts reclassified from accumulated other comprehensive loss | 1,336 | 2,064 | 1,754 | |||
Net current-period other comprehensive income (loss) | 2,469 | 10,429 | 16,975 | |||
Balance, end of year | -32,405 | -34,874 | -45,303 | |||
Loss on derivatives, net of tax [Member] | ||||||
Accumulated other comprehensive loss [Line Items] | ||||||
Balance, beginning of year | -781 | [1] | -1,821 | [1] | -2,931 | [1] |
Other comprehensive income (loss) before reclassifications | 0 | [1] | 0 | [1] | 0 | [1] |
Amounts reclassified from accumulated other comprehensive loss | 781 | [1] | 1,040 | [1] | 1,110 | [1] |
Net current-period other comprehensive income (loss) | 781 | [1] | 1,040 | [1] | 1,110 | [1] |
Balance, end of year | 0 | [1] | -781 | [1] | -1,821 | [1] |
Net unrealized gain (loss) on marketable securities, net of tax [Member] | ||||||
Accumulated other comprehensive loss [Line Items] | ||||||
Balance, beginning of year | -276 | -92 | 178 | |||
Other comprehensive income (loss) before reclassifications | 151 | -184 | -29 | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | -241 | |||
Net current-period other comprehensive income (loss) | 151 | -184 | -270 | |||
Balance, end of year | -125 | -276 | -92 | |||
Currency translation adjustment [Member] | ||||||
Accumulated other comprehensive loss [Line Items] | ||||||
Balance, beginning of year | 2,507 | 6,569 | 5,630 | |||
Other comprehensive income (loss) before reclassifications | -6,315 | -4,062 | 939 | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | |||
Net current-period other comprehensive income (loss) | -6,315 | -4,062 | 939 | |||
Balance, end of year | ($3,808) | $2,507 | $6,569 | |||
[1] | Relates to interest rate locks executed in 2002 and 2004. Further information regarding these financial instruments can be found in Note 6: Derivative financial instruments. |
Acquisitions_Details
Acquisitions (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Jan. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-14 | 31-May-12 |
Acquisitions [Line Items] | ||||||||||
Payments for acquisitions, net of cash acquired | $105,029 | $69,709 | $34,172 | |||||||
Goodwill acquired | 45,521 | 1,615 | 13,080 | 1,459 | 18,735 | |||||
Goodwill, purchase accounting adjustment | -1,375 | |||||||||
Acquired intangible assets useful life | 7 years | 5 years | 5 years | |||||||
Preliminary allocation of purchase price | ||||||||||
Goodwill | 822,777 | 868,376 | 822,777 | 789,636 | ||||||
Internal-use software [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Acquired intangible assets useful life | 4 years | 3 years | 4 years | |||||||
Customer lists/relationships [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Acquired intangible assets useful life | 9 years | 8 years | 9 years | |||||||
Software for sale [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Acquired intangible assets useful life | 9 years | |||||||||
Trade names [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Acquired intangible assets useful life | 3 years | 2 years | 5 years | |||||||
NetClime, Inc. [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Payments for acquisitions, net of cash acquired | 2,011 | |||||||||
Goodwill acquired | 1,615 | |||||||||
NetClime, Inc. [Member] | Internal-use software [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Intangible assets acquired | 1,050 | |||||||||
Acquired intangible assets useful life | 4 years | |||||||||
Gift Box Corporation of America [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Payments for acquisitions, net of cash acquired | 1,750 | |||||||||
Gift Box Corporation of America [Member] | Customer lists/relationships [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Intangible assets acquired | 1,095 | |||||||||
Acquired intangible assets useful life | 5 years | |||||||||
Wausau Financial Systems, Inc. [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Payments for acquisitions, net of cash acquired | 89,824 | |||||||||
Goodwill acquired | 45,521 | |||||||||
Deferred revenue acquired | 14,200 | |||||||||
Future tax benefit acquired | 3,500 | |||||||||
Preliminary allocation of purchase price | ||||||||||
Cash and cash equivalents | 12,526 | |||||||||
Other current assets | 23,746 | |||||||||
Intangibles | 63,400 | |||||||||
Goodwill | 45,521 | |||||||||
Other non-current assets | 1,311 | |||||||||
Current liabilities | -27,117 | |||||||||
Deferred income taxes | -15,363 | |||||||||
Other non-current liabilities | -1,674 | |||||||||
Total purchase price | 102,350 | |||||||||
Wausau Financial Systems, Inc. [Member] | Customer lists/relationships [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Intangible assets acquired | 32,900 | |||||||||
Acquired intangible assets useful life | 10 years | |||||||||
Wausau Financial Systems, Inc. [Member] | Software for sale [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Intangible assets acquired | 28,500 | |||||||||
Acquired intangible assets useful life | 9 years | |||||||||
Wausau Financial Systems, Inc. [Member] | Trade names [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Intangible assets acquired | 2,000 | |||||||||
Acquired intangible assets useful life | 3 years | |||||||||
Small business distributors [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Payments for acquisitions, net of cash acquired | 10,902 | 18,229 | 7,465 | |||||||
Net gain on dispositions | 1,119 | |||||||||
Small business distributors [Member] | Customer lists/relationships [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Intangible assets acquired | 9,474 | |||||||||
Acquired intangible assets useful life | 9 years | |||||||||
VerticalResponse, Inc. [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Payments for acquisitions, net of cash acquired | 27,299 | |||||||||
Goodwill acquired | 18,735 | |||||||||
VerticalResponse, Inc. [Member] | Internal-use software [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Intangible assets acquired | 4,200 | |||||||||
Acquired intangible assets useful life | 4 years | |||||||||
VerticalResponse, Inc. [Member] | Customer lists/relationships [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Intangible assets acquired | 9,400 | |||||||||
Acquired intangible assets useful life | 9 years | |||||||||
Acton Marketing, LLC [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Payments for acquisitions, net of cash acquired | 4,095 | |||||||||
Goodwill acquired | 1,459 | |||||||||
Acton Marketing, LLC [Member] | Customer lists/relationships [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Intangible assets acquired | 3,600 | |||||||||
Acquired intangible assets useful life | 5 years | |||||||||
Destination Rewards, Inc. [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Payments for acquisitions, net of cash acquired | 20,086 | |||||||||
Additional payment to be made for acquisition | 2,400 | 2,400 | ||||||||
Period after acquisition until additional payment is due | 18 months | |||||||||
Goodwill acquired | 11,705 | |||||||||
Goodwill, purchase accounting adjustment | -1,375 | |||||||||
Destination Rewards, Inc. [Member] | Internal-use software [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Intangible assets acquired | 4,100 | 4,100 | ||||||||
Acquired intangible assets useful life | 4 years | |||||||||
Destination Rewards, Inc. [Member] | Customer lists/relationships [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Intangible assets acquired | 4,400 | 4,400 | ||||||||
Acquired intangible assets useful life | 10 years | |||||||||
Destination Rewards, Inc. [Member] | Supplier relationships [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Intangible assets acquired | 1,100 | 1,100 | ||||||||
Acquired intangible assets useful life | 5 years | |||||||||
OrangeSoda, Inc. [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Payments for acquisitions, net of cash acquired | 26,707 | |||||||||
Goodwill acquired | 12,580 | |||||||||
OrangeSoda, Inc. [Member] | Internal-use software [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Intangible assets acquired | 3,300 | |||||||||
Acquired intangible assets useful life | 5 years | |||||||||
OrangeSoda, Inc. [Member] | Customer lists/relationships [Member] | ||||||||||
Acquisitions [Line Items] | ||||||||||
Intangible assets acquired | $10,200 | |||||||||
Acquired intangible assets useful life | 9 years |
Derivative_financial_instrumen2
Derivative financial instruments (Details) (USD $) | 1 Months Ended | |||
In Thousands, unless otherwise specified | Oct. 31, 2004 | Dec. 31, 2002 | Dec. 31, 2013 | Dec. 31, 2014 |
Derivative financial instruments [Line Items] | ||||
Notional amount | $398,000 | |||
Fair value of interest rate swaps, net | -14,081 | |||
Increase (decrease) in debt due to fair value adjustment | -14,670 | |||
Senior notes due 2020 [Member] | ||||
Derivative financial instruments [Line Items] | ||||
Fair Value Adjustment To Hedged Item | -16,239 | -8,067 | ||
Senior, unsecured notes due 2014 [Member] | ||||
Derivative financial instruments [Line Items] | ||||
Fair Value Adjustment To Hedged Item | 1,569 | |||
Fair value hedge related to long-term debt due in 2014 [Member] | ||||
Derivative financial instruments [Line Items] | ||||
Notional amount | 198,000 | |||
Fair value of interest rate swaps, assets | 2,158 | |||
Fair value hedge related to long-term debt due in 2020 [Member] | ||||
Derivative financial instruments [Line Items] | ||||
Notional amount | 200,000 | 200,000 | ||
Fair value of interest rate swaps, liabilities | -16,239 | -8,067 | ||
Cash flow hedge, interest rate swaps 2004 [Member] | ||||
Derivative financial instruments [Line Items] | ||||
Pre-tax loss on cash flow hedge | 17,877 | |||
Cash flow hedge, interest rate swaps 2002 [Member] | ||||
Derivative financial instruments [Line Items] | ||||
Pre-tax loss on cash flow hedge | $4,026 |
Fair_value_measurements_annual
Fair value measurements (annual asset impairment analyses) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Jul. 31, 2014 |
Annual asset impairment analyses [Line Items] | ||
Date of annual impairment test | 31-Jul | |
Carrying value of indefinite-lived trade name | $19,100 | |
Excess of fair value over carrying value of indefinite-lived trade name | 31,000 | |
Asset impairment charge, annual impairment analyses | 0 | |
Minimum [Member] | ||
Annual asset impairment analyses [Line Items] | ||
Excess of fair value over carrying value of reporting unit's net assets | 74,000 | |
Excess of fair value over carrying value of reporting unit's net assets, percentage | 47.00% | |
Maximum [Member] | ||
Annual asset impairment analyses [Line Items] | ||
Excess of fair value over carrying value of reporting unit's net assets | $1,128,000 | |
Excess of fair value over carrying value of reporting unit's net assets, percentage | 482.00% |
Fair_value_measurements_nonrec
Fair value measurements (non-recurring asset impairment analyses) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Non-recurring fair value measurements [Line Items] | |||||
Asset impairment charge | $6,468 | $5,000 | $6,468 | $5,000 | $0 |
Internal-use software [Member] | |||||
Non-recurring fair value measurements [Line Items] | |||||
Fair value as of measurement date | 0 | ||||
Asset impairment charge | 4,036 | ||||
Internal-use software [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | |||||
Non-recurring fair value measurements [Line Items] | |||||
Fair value as of measurement date | 0 | ||||
Internal-use software [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Non-recurring fair value measurements [Line Items] | |||||
Fair value as of measurement date | 0 | ||||
Internal-use software [Member] | Significant unobservable inputs (Level 3) [Member] | |||||
Non-recurring fair value measurements [Line Items] | |||||
Fair value as of measurement date | 0 | ||||
Customer lists/relationships [Member] | |||||
Non-recurring fair value measurements [Line Items] | |||||
Fair value as of measurement date | 0 | 2,120 | 2,120 | ||
Asset impairment charge | 1,952 | 5,000 | |||
Customer lists/relationships [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | |||||
Non-recurring fair value measurements [Line Items] | |||||
Fair value as of measurement date | 0 | 0 | 0 | ||
Customer lists/relationships [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Non-recurring fair value measurements [Line Items] | |||||
Fair value as of measurement date | 0 | 0 | 0 | ||
Customer lists/relationships [Member] | Significant unobservable inputs (Level 3) [Member] | |||||
Non-recurring fair value measurements [Line Items] | |||||
Fair value as of measurement date | 0 | 2,120 | 2,120 | ||
Trade names [Member] | |||||
Non-recurring fair value measurements [Line Items] | |||||
Fair value as of measurement date | 0 | ||||
Asset impairment charge | 480 | ||||
Trade names [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | |||||
Non-recurring fair value measurements [Line Items] | |||||
Fair value as of measurement date | 0 | ||||
Trade names [Member] | Significant other observable inputs (Level 2) [Member] | |||||
Non-recurring fair value measurements [Line Items] | |||||
Fair value as of measurement date | 0 | ||||
Trade names [Member] | Significant unobservable inputs (Level 3) [Member] | |||||
Non-recurring fair value measurements [Line Items] | |||||
Fair value as of measurement date | $0 |
Fair_value_measurements_acquis
Fair value measurements (acquisitions) (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Oct. 31, 2014 | Jan. 31, 2014 | 31-May-12 |
Acquisitions [Line Items] | |||||||
Payments for acquisitions, net of cash acquired | $105,029 | $69,709 | $34,172 | ||||
2014 acquisitions [Member] | Customer lists/relationships [Member] | |||||||
Acquisitions [Line Items] | |||||||
Intangible assets acquired | 43,669 | ||||||
2014 acquisitions [Member] | Software, internal-use and for sale [Member] | |||||||
Acquisitions [Line Items] | |||||||
Intangible assets acquired | 29,550 | ||||||
Wausau Financial Systems, Inc. [Member] | |||||||
Acquisitions [Line Items] | |||||||
Payments for acquisitions, net of cash acquired | 89,824 | ||||||
Deferred revenue acquired | 14,200 | ||||||
Wausau Financial Systems, Inc. [Member] | Customer lists/relationships [Member] | |||||||
Acquisitions [Line Items] | |||||||
Intangible assets acquired | 32,900 | ||||||
Wausau Financial Systems, Inc. [Member] | Trade names [Member] | |||||||
Acquisitions [Line Items] | |||||||
Intangible assets acquired | 2,000 | ||||||
NetClime, Inc. [Member] | |||||||
Acquisitions [Line Items] | |||||||
Payments for acquisitions, net of cash acquired | 2,011 | ||||||
NetClime, Inc. [Member] | Internal-use software [Member] | |||||||
Acquisitions [Line Items] | |||||||
Intangible assets acquired | 1,050 | ||||||
2013 acquisitions [Member] | Customer lists/relationships [Member] | |||||||
Acquisitions [Line Items] | |||||||
Intangible assets acquired | 18,810 | ||||||
2013 acquisitions [Member] | Internal-use software [Member] | |||||||
Acquisitions [Line Items] | |||||||
Intangible assets acquired | 8,300 | ||||||
Destination Rewards, Inc. [Member] | |||||||
Acquisitions [Line Items] | |||||||
Payments for acquisitions, net of cash acquired | 20,086 | ||||||
Destination Rewards, Inc. [Member] | Customer lists/relationships [Member] | |||||||
Acquisitions [Line Items] | |||||||
Intangible assets acquired | 4,400 | ||||||
Change in estimated fair value of acquired intangible asset | 2,200 | ||||||
Destination Rewards, Inc. [Member] | Internal-use software [Member] | |||||||
Acquisitions [Line Items] | |||||||
Intangible assets acquired | 4,100 | ||||||
Change in estimated fair value of acquired intangible asset | 400 | ||||||
Destination Rewards, Inc. [Member] | Supplier relationships [Member] | |||||||
Acquisitions [Line Items] | |||||||
Intangible assets acquired | 1,100 | ||||||
Change in estimated fair value of acquired intangible asset | -1,200 | ||||||
Small business distributors [Member] | |||||||
Acquisitions [Line Items] | |||||||
Payments for acquisitions, net of cash acquired | 10,902 | 18,229 | 7,465 | ||||
Small business distributors [Member] | Customer lists/relationships [Member] | |||||||
Acquisitions [Line Items] | |||||||
Intangible assets acquired | 9,474 | ||||||
OrangeSoda, Inc. [Member] | |||||||
Acquisitions [Line Items] | |||||||
Payments for acquisitions, net of cash acquired | 26,707 | ||||||
OrangeSoda, Inc. [Member] | Customer lists/relationships [Member] | |||||||
Acquisitions [Line Items] | |||||||
Intangible assets acquired | 10,200 | ||||||
OrangeSoda, Inc. [Member] | Internal-use software [Member] | |||||||
Acquisitions [Line Items] | |||||||
Intangible assets acquired | $3,300 |
Fair_value_measurements_invest
Fair value measurements (investments and hedge ineffectiveness) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Long-term investments | |||
Net unrealized gain on investment in mutual funds | $323 | $161 | |
Fair value measurements, hedge ineffectiveness | |||
Gain (loss) from derivatives | 6,014 | -13,750 | -4,871 |
(Loss) gain from change in fair value of hedged debt | -6,603 | 13,851 | 3,645 |
Net (increase) decrease in interest expense | -589 | 101 | -1,226 |
Cash equivalents [Member] | |||
Available-for-sale securities [Line Items] | |||
Realized gain (loss), available-for-sale securities | 0 | 0 | 0 |
Funds held for customers [Member] | |||
Available-for-sale securities [Line Items] | |||
Realized gain (loss), available-for-sale securities | 327 | ||
Other current assets [Member] | |||
Available-for-sale securities [Line Items] | |||
Realized gain (loss), available-for-sale securities | $0 | $0 | $0 |
Fair_value_measurements_recurr
Fair value measurements (recurring fair value measurements ) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Recurring fair value measurements [Line Items] | ||||
Available-for-sale marketable securities | $19,625 | $86,782 | ||
Long-term investment in mutual funds | 2,384 | 2,407 | ||
Derivative assets | 2,158 | |||
Derivative liabilites | -8,067 | -16,239 | ||
Transfer between fair value levels, recurring fair value measurements | 0 | 0 | ||
Quoted prices in active markets for identical assets (Level 1) [Member] | ||||
Recurring fair value measurements [Line Items] | ||||
Long-term investment in mutual funds | 2,384 | 2,407 | ||
Derivative assets | 0 | |||
Derivative liabilites | 0 | 0 | ||
Significant other observable inputs (Level 2) [Member] | ||||
Recurring fair value measurements [Line Items] | ||||
Long-term investment in mutual funds | 0 | 0 | ||
Derivative assets | 2,158 | |||
Derivative liabilites | -8,067 | -16,239 | ||
Significant unobservable inputs (Level 3) [Member] | ||||
Recurring fair value measurements [Line Items] | ||||
Long-term investment in mutual funds | 0 | 0 | ||
Derivative assets | 0 | |||
Derivative liabilites | 0 | 0 | ||
Cash equivalents [Member] | ||||
Recurring fair value measurements [Line Items] | ||||
Available-for-sale marketable securities | 70,001 | |||
Cash equivalents [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||||
Recurring fair value measurements [Line Items] | ||||
Available-for-sale marketable securities | 70,001 | |||
Cash equivalents [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Recurring fair value measurements [Line Items] | ||||
Available-for-sale marketable securities | 0 | |||
Cash equivalents [Member] | Significant unobservable inputs (Level 3) [Member] | ||||
Recurring fair value measurements [Line Items] | ||||
Available-for-sale marketable securities | 0 | |||
Funds held for customers [Member] | ||||
Recurring fair value measurements [Line Items] | ||||
Available-for-sale marketable securities | 17,730 | [1] | 14,736 | [2] |
Funds held for customers [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||||
Recurring fair value measurements [Line Items] | ||||
Available-for-sale marketable securities | 0 | 0 | ||
Funds held for customers [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Recurring fair value measurements [Line Items] | ||||
Available-for-sale marketable securities | 17,730 | 14,736 | ||
Funds held for customers [Member] | Significant unobservable inputs (Level 3) [Member] | ||||
Recurring fair value measurements [Line Items] | ||||
Available-for-sale marketable securities | 0 | 0 | ||
Other current assets [Member] | ||||
Recurring fair value measurements [Line Items] | ||||
Available-for-sale marketable securities | 1,895 | 2,045 | ||
Other current assets [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||||
Recurring fair value measurements [Line Items] | ||||
Available-for-sale marketable securities | 0 | 0 | ||
Other current assets [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Recurring fair value measurements [Line Items] | ||||
Available-for-sale marketable securities | 1,895 | 2,045 | ||
Other current assets [Member] | Significant unobservable inputs (Level 3) [Member] | ||||
Recurring fair value measurements [Line Items] | ||||
Available-for-sale marketable securities | $0 | $0 | ||
[1] | Funds held for customers, as reported on the consolidated balance sheet as of DecemberB 31, 2014, also included cash of $25,874. | |||
[2] | Funds held for customers, as reported on the consolidated balance sheet as of DecemberB 31, 2013, also included cash of $27,689. |
Fair_value_measurements_other_
Fair value measurements (other financial instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Quoted prices in active markets for identical assets (Level 1) [Member] | ||||
Fair value measurements, other financial instruments [Line Items] | ||||
Loans and notes receivable from distributors | $0 | $0 | ||
Short-term borrowings | 160,000 | |||
Long-term debt, including portion due within one year | 0 | [1] | 0 | [1] |
Significant other observable inputs (Level 2) [Member] | ||||
Fair value measurements, other financial instruments [Line Items] | ||||
Loans and notes receivable from distributors | 0 | 0 | ||
Short-term borrowings | 0 | |||
Long-term debt, including portion due within one year | 419,000 | [1] | 684,133 | [1] |
Significant unobservable inputs (Level 3) [Member] | ||||
Fair value measurements, other financial instruments [Line Items] | ||||
Loans and notes receivable from distributors | 15,765 | 17,051 | ||
Short-term borrowings | 0 | |||
Long-term debt, including portion due within one year | 0 | [1] | 0 | [1] |
Cash and cash equivalents [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||||
Fair value measurements, other financial instruments [Line Items] | ||||
Cash | 61,541 | 51,088 | ||
Cash and cash equivalents [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Fair value measurements, other financial instruments [Line Items] | ||||
Cash | 0 | 0 | ||
Cash and cash equivalents [Member] | Significant unobservable inputs (Level 3) [Member] | ||||
Fair value measurements, other financial instruments [Line Items] | ||||
Cash | 0 | 0 | ||
Funds held for customers [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||||
Fair value measurements, other financial instruments [Line Items] | ||||
Cash | 25,874 | 27,689 | ||
Funds held for customers [Member] | Significant other observable inputs (Level 2) [Member] | ||||
Fair value measurements, other financial instruments [Line Items] | ||||
Cash | 0 | 0 | ||
Funds held for customers [Member] | Significant unobservable inputs (Level 3) [Member] | ||||
Fair value measurements, other financial instruments [Line Items] | ||||
Cash | 0 | 0 | ||
Carrying value [Member] | ||||
Fair value measurements, other financial instruments [Line Items] | ||||
Loans and notes receivable from distributors | 16,915 | 18,047 | ||
Short-term borrowings | 160,000 | |||
Long-term debt, including portion due within one year | 391,933 | [1] | 638,787 | [1] |
Carrying value [Member] | Cash and cash equivalents [Member] | ||||
Fair value measurements, other financial instruments [Line Items] | ||||
Cash | 61,541 | 51,088 | ||
Carrying value [Member] | Funds held for customers [Member] | ||||
Fair value measurements, other financial instruments [Line Items] | ||||
Cash | 25,874 | 27,689 | ||
Fair value [Member] | ||||
Fair value measurements, other financial instruments [Line Items] | ||||
Loans and notes receivable from distributors | 15,765 | 17,051 | ||
Short-term borrowings | 160,000 | |||
Long-term debt, including portion due within one year | 419,000 | [1] | 684,133 | [1] |
Fair value [Member] | Cash and cash equivalents [Member] | ||||
Fair value measurements, other financial instruments [Line Items] | ||||
Cash | 61,541 | 51,088 | ||
Fair value [Member] | Funds held for customers [Member] | ||||
Fair value measurements, other financial instruments [Line Items] | ||||
Cash | $25,874 | $27,689 | ||
[1] | Amounts exclude capital lease obligations. |
Restructuring_charges_Details
Restructuring charges (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employees | Employees | Facilities | ||||||||
Facilities | Employees | |||||||||
Net restructuring charges by component | ||||||||||
Severance accruals | $8,411 | $7,495 | $7,619 | |||||||
Severance reversals | -1,513 | -805 | -1,862 | |||||||
Operating lease obligations | 0 | 216 | 396 | |||||||
Operating lease obligations reversals | 0 | -157 | 0 | |||||||
Net restructuring accruals | 6,898 | 6,749 | 6,153 | |||||||
Other costs | 2,757 | 4,157 | 4,581 | |||||||
Net restructuring charges | 4,355 | 3,532 | 5,327 | 3,079 | 1,051 | 1,449 | 9,655 | 10,906 | 10,734 | |
Total cost of revenue | 879 | 1,471 | 2,808 | |||||||
Operating expenses | 8,776 | 9,435 | 7,926 | |||||||
Number of employees included in severance accrual | 260 | 230 | 395 | |||||||
Number of call centers closed | 2 | |||||||||
Number of printing facilities closed | 1 | 2 | ||||||||
Other restructuring charges disclosures | ||||||||||
Restructuring accruals, total | 5,638 | 4,276 | 5,638 | 4,650 | 6,032 | |||||
Restructuring accruals, accrued liabilities | 5,609 | 4,276 | 5,609 | |||||||
Restructuring accruals, other non-current liabilities | $29 | $29 | ||||||||
Number of employees that have not started to receive severance benefits | 60 |
Restructuring_charges_restruct
Restructuring charges (restructuring accruals by year and by segment) (Details) (USD $) | 12 Months Ended | 72 Months Ended | 48 Months Ended | 36 Months Ended | 24 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |||||||
Restructuring accruals [Line Items] | ||||||||||||||
Balance, beginning of year | $5,638 | $4,650 | $6,032 | $6,032 | $4,650 | |||||||||
Restructuring charges | 8,411 | 7,711 | 8,015 | 53,670 | [1] | |||||||||
Restructuring reversals | -1,513 | -962 | -1,862 | -7,940 | [1] | |||||||||
Inter-segment transfer | 0 | 0 | [1] | |||||||||||
Payments | -8,260 | -5,761 | -7,535 | -41,454 | [1] | |||||||||
Balance, end of year | 4,276 | 5,638 | 4,650 | 4,276 | 4,276 | 4,276 | 4,276 | |||||||
2009/2010 initiatives [Member] | ||||||||||||||
Restructuring accruals [Line Items] | ||||||||||||||
Balance, beginning of year | 0 | 85 | 965 | 965 | 85 | |||||||||
Restructuring charges | 0 | 0 | 26 | 20,765 | ||||||||||
Restructuring reversals | 0 | 0 | -228 | -3,220 | ||||||||||
Payments | 0 | -85 | -678 | -17,545 | ||||||||||
Balance, end of year | 0 | 0 | 85 | 0 | 0 | 0 | 0 | |||||||
2011 initiatives [Member] | ||||||||||||||
Restructuring accruals [Line Items] | ||||||||||||||
Balance, beginning of year | 0 | 21 | 5,067 | 5,067 | 21 | |||||||||
Restructuring charges | 0 | 49 | 281 | 9,124 | ||||||||||
Restructuring reversals | 0 | -3 | -1,105 | -1,719 | ||||||||||
Payments | 0 | -67 | -4,222 | -7,405 | ||||||||||
Balance, end of year | 0 | 0 | 21 | 0 | 0 | 0 | 0 | |||||||
2012 initiatives [Member] | ||||||||||||||
Restructuring accruals [Line Items] | ||||||||||||||
Balance, beginning of year | 409 | 4,544 | 0 | 0 | 4,544 | |||||||||
Restructuring charges | 21 | 283 | 7,708 | 8,012 | ||||||||||
Restructuring reversals | -12 | -822 | -529 | -1,363 | ||||||||||
Payments | -386 | -3,596 | -2,635 | -6,617 | ||||||||||
Balance, end of year | 32 | 409 | 4,544 | 32 | 32 | 32 | 32 | |||||||
2013 initiatives [Member] | ||||||||||||||
Restructuring accruals [Line Items] | ||||||||||||||
Balance, beginning of year | 5,229 | 0 | 0 | 0 | 0 | |||||||||
Restructuring charges | 250 | 7,379 | 0 | 7,629 | ||||||||||
Restructuring reversals | -859 | -137 | 0 | -996 | ||||||||||
Payments | -4,492 | -2,013 | 0 | -6,505 | ||||||||||
Balance, end of year | 128 | 5,229 | 0 | 128 | 128 | 128 | 128 | |||||||
2014 initiatives [Member] | ||||||||||||||
Restructuring accruals [Line Items] | ||||||||||||||
Balance, beginning of year | 0 | 0 | 0 | 0 | 0 | |||||||||
Restructuring charges | 8,140 | 0 | 0 | |||||||||||
Restructuring reversals | -642 | 0 | 0 | |||||||||||
Payments | -3,382 | 0 | 0 | |||||||||||
Balance, end of year | 4,116 | 0 | 0 | 4,116 | 4,116 | 4,116 | 4,116 | |||||||
Employee severance benefits [Member] | Small Business Services [Member] | ||||||||||||||
Restructuring accruals [Line Items] | ||||||||||||||
Balance, beginning of year | 1,624 | 643 | 887 | 887 | 643 | |||||||||
Restructuring charges | 3,566 | 2,459 | 2,485 | 17,507 | [1] | |||||||||
Restructuring reversals | -858 | -129 | -422 | -2,958 | [1] | |||||||||
Inter-segment transfer | 184 | 309 | [1] | |||||||||||
Payments | -2,920 | -1,349 | -2,491 | -13,446 | [1] | |||||||||
Balance, end of year | 1,412 | 1,624 | 643 | 1,412 | 1,412 | 1,412 | 1,412 | |||||||
Employee severance benefits [Member] | Financial Services [Member] | ||||||||||||||
Restructuring accruals [Line Items] | ||||||||||||||
Balance, beginning of year | 1,991 | 1,090 | 1,397 | 1,397 | 1,090 | |||||||||
Restructuring charges | 2,897 | 2,619 | 1,331 | 12,681 | [1] | |||||||||
Restructuring reversals | -306 | -249 | -227 | -1,497 | [1] | |||||||||
Inter-segment transfer | -184 | 50 | [1] | |||||||||||
Payments | -2,734 | -1,469 | -1,227 | -9,386 | [1] | |||||||||
Balance, end of year | 1,848 | 1,991 | 1,090 | 1,848 | 1,848 | 1,848 | 1,848 | |||||||
Employee severance benefits [Member] | Direct Checks [Member] | ||||||||||||||
Restructuring accruals [Line Items] | ||||||||||||||
Balance, beginning of year | 365 | 44 | 744 | 744 | 44 | |||||||||
Restructuring charges | 36 | 407 | 166 | 3,892 | [1] | |||||||||
Restructuring reversals | -37 | -4 | -136 | -369 | [1] | |||||||||
Inter-segment transfer | -40 | -38 | [1] | |||||||||||
Payments | -364 | -82 | -690 | -3,485 | [1] | |||||||||
Balance, end of year | 0 | 365 | 44 | 0 | 0 | 0 | 0 | |||||||
Employee severance benefits [Member] | Corporate | ||||||||||||||
Restructuring accruals [Line Items] | ||||||||||||||
Balance, beginning of year | 1,508 | [2] | 2,472 | [2] | 2,647 | [2] | 2,647 | [2] | 2,472 | [2] | ||||
Restructuring charges | 1,912 | [2] | 2,010 | [2] | 3,637 | [2] | 18,105 | [1],[2] | ||||||
Restructuring reversals | -312 | [2] | -423 | [2] | -1,077 | [2] | -2,959 | [1],[2] | ||||||
Inter-segment transfer | 40 | -321 | [1],[2] | |||||||||||
Payments | -2,124 | [2] | -2,551 | [2] | -2,775 | [2] | -13,841 | [1],[2] | ||||||
Balance, end of year | 984 | [2] | 1,508 | [2] | 2,472 | [2] | 984 | [2] | 984 | [2] | 984 | [2] | 984 | [2] |
Operating lease obligations [Member] | Small Business Services [Member] | ||||||||||||||
Restructuring accruals [Line Items] | ||||||||||||||
Balance, beginning of year | 150 | 251 | 69 | 69 | 251 | |||||||||
Restructuring charges | 0 | 164 | 278 | 806 | [1] | |||||||||
Restructuring reversals | 0 | -157 | 0 | -157 | [1] | |||||||||
Inter-segment transfer | 0 | 0 | [1] | |||||||||||
Payments | -118 | -108 | -96 | -617 | [1] | |||||||||
Balance, end of year | 32 | 150 | 251 | 32 | 32 | 32 | 32 | |||||||
Operating lease obligations [Member] | Direct Checks [Member] | ||||||||||||||
Restructuring accruals [Line Items] | ||||||||||||||
Balance, beginning of year | 0 | 150 | 288 | 288 | 150 | |||||||||
Restructuring charges | 0 | 52 | 118 | 679 | [1] | |||||||||
Restructuring reversals | 0 | 0 | 0 | 0 | [1] | |||||||||
Inter-segment transfer | 0 | 0 | [1] | |||||||||||
Payments | 0 | -202 | -256 | -679 | [1] | |||||||||
Balance, end of year | $0 | $0 | $150 | $0 | $0 | $0 | $0 | |||||||
[1] | Includes accruals related to our cost reduction initiatives for 2009 through 2014. | |||||||||||||
[2] | As discussed in Note 16: Business segment information, corporate costs are allocated to our business segments. As such, the net corporate restructuring charges are reflected in the business segment operating income presented in Note 16 in accordance with our allocation methodology. |
Income_tax_provision_Details
Income tax provision (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income before income taxes | ||||
United States | $279,326 | $263,427 | $237,450 | |
Foreign | 17,855 | 17,632 | 13,303 | |
Income before income taxes | 297,181 | 281,059 | 250,753 | |
Current tax provision: | ||||
Federal | 91,630 | 80,262 | 66,178 | |
State | 8,674 | 11,599 | 6,276 | |
Foreign | 4,496 | 4,789 | 1,537 | |
Total current tax provision | 104,800 | 96,650 | 73,991 | |
Deferred tax provision: | ||||
Federal | -6,165 | -1,403 | 6,799 | |
State | -1,491 | -618 | 735 | |
Foreign | 243 | -222 | -1,264 | |
Total deferred tax provision | -7,413 | -2,243 | 6,270 | |
Income tax provision | 97,387 | 94,407 | 80,261 | |
Reconciliation of effective tax rate | ||||
Income tax at federal statutory rate | 35.00% | 35.00% | 35.00% | |
State income tax, net of federal income tax benefit | 2.30% | 2.80% | 2.50% | |
Qualified production activities deduction | -2.80% | -2.80% | -2.60% | |
Receivables for prior year tax returns | 0.00% | -0.10% | -0.70% | [1] |
Impact of health care legislation on deferred income taxes | 0.00% | 0.00% | -0.40% | [2] |
Other | -1.70% | -1.30% | -1.80% | |
Income tax provision | 32.80% | 33.60% | 32.00% | |
Impact of health care legislation on deferred income taxes | 949 | |||
Changes in unrecognized tax benefits | ||||
Balance, beginning of year | 6,005 | 5,619 | 6,236 | |
Additions for tax positions of current year | 487 | 617 | 364 | |
Additions for tax positions of prior years | 500 | 834 | 2,793 | |
Fair value of acquired tax positions | 65 | 316 | ||
Reductions for tax positions of prior years | -902 | -1,178 | -2,976 | |
Settlements | -416 | |||
Lapse of statutes of limitations | -214 | -203 | -382 | |
Effect of adoption, increase in non-current deferred income tax liabilities and decrease in other non-current liabilities | -669 | |||
Balance, end of year | 5,272 | 6,005 | 5,619 | |
Unrecognized tax benefits | ||||
Unrecognized tax benefits that would impact income tax expense | 5,272 | |||
Accruals for interest and penalties | 982 | 975 | ||
Net decrease to income tax provision for interest and penalties | 198 | 152 | ||
Net increase to income tax provision for interest and penalties | 7 | |||
Amount by which it is reasonably possible that unrecognized tax benefits will decrease in next 12 months | 4,200 | |||
Amount by which it is reasonably possible that unrecognized tax benefits will increase in next 12 months | 1,600 | |||
Deferred tax assets | ||||
Employee benefit plans | 9,485 | 3,319 | ||
Reserves and accruals | 8,119 | 7,206 | ||
Net operating loss and capital loss carryforwards | 7,797 | 9,129 | ||
Inventories | 2,992 | 2,768 | ||
Federal benefit of state uncertain tax positions | 1,882 | 2,259 | ||
All other | 1,844 | 2,449 | ||
Total deferred taxes | 32,119 | 27,130 | ||
Valuation allowances | -2,945 | -3,203 | ||
Net deferred taxes | 29,174 | 23,927 | ||
Income tax (benefit) provision, change in valuation allowance | -37 | 732 | ||
Deferred tax liabilities | ||||
Goodwill | 56,875 | 51,962 | ||
Intangible assets | 40,010 | 28,370 | ||
Prepaid assets | 4,640 | 2,859 | ||
Deferred advertising costs | 4,176 | 4,814 | ||
Early extinguishment of debt | 3,129 | 3,921 | ||
All other | 4,612 | 6,018 | ||
Total deferred taxes | 113,442 | 97,944 | ||
Net deferred taxes | 113,442 | 97,944 | ||
Undistributed earnings of foreign subsidiaries | ||||
Undistributed earnings of Canadian subsidiary companies | 94,000 | |||
Cash and investments held by Canadian subsidiaries | 52,644 | |||
State [Member] | ||||
Tax carryforwards [Line Items] | ||||
Net operating loss carryforwards | 55,269 | |||
Net operating loss carryforwards, expiration dates | various dates up to 2034 | |||
Federal [Member] | ||||
Tax carryforwards [Line Items] | ||||
Net operating loss carryforwards | 6,560 | |||
Net operating loss carryforwards, expiration dates | between 2025 and 2032 | |||
Foreign [Member] | ||||
Tax carryforwards [Line Items] | ||||
Net operating loss carryforwards | 4,560 | |||
Net operating loss carryforwards, expiration dates | do not expire | |||
Capital loss carryforwards | $5,536 | |||
Capital loss carryforwards, expiration dates | do not expire | |||
[1] | 2012 reduction reflects amendments to prior year tax returns claiming refunds primarily associated with state tax returns. | |||
[2] | 2012 income tax provision was reduced $949 by actions taken to restore a portion of the deferred tax asset attributable to the receipt of Medicare Part D subsidy payments. |
Sharebased_compensation_plans_1
Share-based compensation plans (long-term incentive plan and share-based compensation expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based compensation plans [Line Items] | |||
Common stock reserved for issuance | 5,000 | ||
Common stock available for issuance | 3,640 | ||
Full value awards factor (in ones) | 2.23 | ||
Share-based compensation expense | $9,776 | $7,562 | $7,292 |
Income tax benefit | -3,204 | -2,595 | -2,439 |
Compensation expense not yet recognized for unvested awards | 11,550 | ||
Weighted-average period over which expense for unvested awards will be recognized | 1 year 7 months | ||
Stock options [Member] | |||
Share-based compensation plans [Line Items] | |||
Share-based compensation expense | 4,305 | 4,705 | 4,681 |
Restricted shares and restricted stock units [Member] | |||
Share-based compensation plans [Line Items] | |||
Share-based compensation expense | 4,111 | 2,556 | 2,323 |
Performance share awards [Member] | |||
Share-based compensation plans [Line Items] | |||
Share-based compensation expense | 966 | 0 | 0 |
Employee stock purchase plan | |||
Share-based compensation plans [Line Items] | |||
Share-based compensation expense | $394 | $301 | $288 |
Sharebased_compensation_plans_2
Share-based compensation plans (award terms) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Stock options [Member] | |
Share-based compensation plans [Line Items] | |
Options vesting each year during vesting period | 33.30% |
Term of award | 7 years |
Period after grant when vesting of stock options may be modified in certain circumstances outlined in award agreement | 1 year |
Exercise period of award following voluntary termination of employment | 0 years 3 months |
Number of shares of common stock into which each award is convertible | 1 |
Stock options [Member] | Minimum [Member] | |
Share-based compensation plans [Line Items] | |
Award vesting period | 1 year |
Stock options [Member] | Maximum [Member] | |
Share-based compensation plans [Line Items] | |
Award vesting period | 3 years |
Restricted stock units [Member] | |
Share-based compensation plans [Line Items] | |
Award vesting period | 2 years |
Number of shares of common stock into which each award is convertible | 1 |
Company matching amount, restricted stock units | 50.00% |
Restricted shares [Member] | Minimum [Member] | |
Share-based compensation plans [Line Items] | |
Award vesting period | 1 year |
Restricted shares [Member] | Maximum [Member] | |
Share-based compensation plans [Line Items] | |
Award vesting period | 3 years |
Performance share awards [Member] | |
Share-based compensation plans [Line Items] | |
Award vesting period | 3 years |
Period after grant when pro-rata portion of performance shares awards may vest | 1 year |
Sharebased_compensation_plans_3
Share-based compensation plans (stock options) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Weighted-average exercise price per option | |||
Outstanding, beginning of year | $27.22 | $24.96 | $23.26 |
Granted | $50.48 | $38.74 | $25.16 |
Exercised | $23.81 | $27.19 | $18.70 |
Forfeited or expired | $37.53 | $30.03 | $32.13 |
Outstanding, end of year | $33.28 | $27.22 | $24.96 |
Exercisable, end of year | $25.76 | $22.09 | $25.68 |
Change in number of stock options | |||
Outstanding, beginning of year | 1,640 | 2,222 | 2,766 |
Granted | 290 | 465 | 671 |
Exercised | -552 | -912 | -989 |
Forfeited or expired | -66 | -135 | -226 |
Outstanding, end of year | 1,312 | 1,640 | 2,222 |
Exercisable, end of year | 645 | 759 | 1,134 |
Additional disclosures | |||
Aggregate intrinsic value, options outstanding, end of year | $38,020 | ||
Aggregate intrinsic value, options exercisable, end of year | 23,540 | ||
Weighted average remaining contractual term, options outstanding, end of year | 4 years 5 months | ||
Weighted-average remaining contractual term, options exercisable, end of year | 3 years 6 months | ||
Weighted-average grant date fair value, options granted | $12.97 | $13.02 | $9.03 |
Total intrinsic value, options exercised | $17,074 | $13,614 | $9,719 |
Stock options [Member] | |||
Assumptions, Black-Scholes option pricing model | |||
Risk-free interest rate | 1.20% | 0.70% | 0.70% |
Dividend yield | 2.00% | 2.60% | 4.00% |
Expected volatility | 36.10% | 50.50% | 59.60% |
Weighted-average option life (in years) | 4 years 4 months | 4 years 4 months | 4 years 4 months |
Sharebased_compensation_plans_4
Share-based compensation plans (restricted stock units, restricted shares and performance share awards) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted stock units [Member] | |||
Changes in share-based compensation awards (in thousands) | |||
Outstanding, beginning of year | 150 | 123 | 101 |
Granted | 30 | 45 | 43 |
Vested | -13 | -11 | -16 |
Forfeited | -1 | -7 | -5 |
Outstanding, end of year | 166 | 150 | 123 |
Weighted-average grant date fair value | |||
Outstanding, beginning of year | $27.11 | $24.56 | $24.26 |
Granted | $53.64 | $36.74 | $24.26 |
Vested | $23.42 | $24.33 | $20.63 |
Forfeited | $34.08 | $26.78 | $23.42 |
Outstanding, end of year | $30.51 | $27.11 | $24.56 |
Additional disclosures | |||
Weighted-average remaining contractual term, outstanding, end of year | 3 years 7 months | ||
Fair value, awards vested | $654 | $390 | $397 |
Restricted stock units classified as liabilities [Member] | |||
Changes in share-based compensation awards (in thousands) | |||
Outstanding, end of year | 29 | ||
Additional disclosures | |||
Aggregate intrinsic value, outstanding, end of year | 1,824 | ||
Weighted-average remaining contractual term, outstanding, end of year | 6 months | ||
Fair value per unit, end of year | $62.25 | ||
Cash payments to settle restricted stock units | 25 | 64 | 135 |
Restricted shares [Member] | |||
Changes in share-based compensation awards (in thousands) | |||
Outstanding, beginning of year | 21 | 40 | 40 |
Granted | 121 | 17 | 37 |
Vested | -11 | -33 | -34 |
Forfeited | -11 | -3 | -3 |
Outstanding, end of year | 120 | 21 | 40 |
Weighted-average grant date fair value | |||
Outstanding, beginning of year | $35.24 | $23.73 | $23.71 |
Granted | $51.08 | $37.50 | $23.63 |
Vested | $37.06 | $23.68 | $23.44 |
Forfeited | $48.14 | $23.45 | $25.37 |
Outstanding, end of year | $49.96 | $35.24 | $23.73 |
Additional disclosures | |||
Fair value, awards vested | $624 | $1,233 | $826 |
Performance share awards [Member] | |||
Assumptions, Monte Carlo simulation model | |||
Risk-free interest rate | 0.70% | ||
Dividend yield | 2.40% | ||
Expected volatility | 30.50% | ||
Changes in share-based compensation awards (in thousands) | |||
Outstanding, beginning of year | 0 | ||
Granted | 74 | ||
Forfeited | -5 | ||
Outstanding, end of year | 69 | ||
Weighted-average grant date fair value | |||
Outstanding, beginning of year | $0 | ||
Granted | $50.14 | ||
Forfeited | $50.14 | ||
Outstanding, end of year | $50.14 |
Sharebased_compensation_plans_5
Share-based compensation plans (employee stock purchase plan) (Details) (USD $) | 12 Months Ended | ||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2014 | Jan. 31, 2014 | Jul. 31, 2013 | Jan. 31, 2013 | Jul. 31, 2012 | Jan. 31, 2012 |
Employee stock purchase plan | |||||||||
Number of shares issued, employee stock purchase plan | 44 | 51 | 72 | ||||||
Purchase price per share, employee stock purchase plan | $46.76 | $41.27 | $34.86 | $31.27 | $24.07 | $21.73 |
Employee_benefit_plans_Details
Employee benefit plans (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Compensation plan expense | ||||||
Performance period, long-term cash bonus programs | 3 years | |||||
Performance-based compensation plans | $29,629 | [1] | $25,561 | [1] | $33,007 | [1] |
401(k) expense | 7,209 | 7,004 | 6,680 | |||
Deferred compensation plan | ||||||
Maximum percentage of base salary employees can defer | 100.00% | |||||
Maximum percentage of bonus employees can defer | 50.00% | |||||
Deferred compensation plan liability | 3,466 | 3,266 | ||||
Investments in company-owned life insurance policies which fund deferred compensation plan | 12,873 | 12,363 | ||||
Voluntary employee beneficiary association (VEBA) trust | ||||||
Contributions to VEBA trust | 14,000 | 25,700 | 34,070 | |||
Amount by which liability for incurred but not reported medical claims exceeded prepaid balance in VEBA trust | 201 | 2,154 | ||||
First 1% of wages contributed by employee [Member] | ||||||
Profit sharing/401(k) plan disclosures [Line Items] | ||||||
Employer matching 401(k) contribution, percentage | 100.00% | |||||
Next 5% of wages contributed by employee [Member] | ||||||
Profit sharing/401(k) plan disclosures [Line Items] | ||||||
Employer matching 401(k) contribution, percentage | 50.00% | |||||
100% employer match [Member] | ||||||
Profit sharing/401(k) plan disclosures [Line Items] | ||||||
Employee 401(k) contribution receiving employer match, percent of wages | 1.00% | |||||
50% employer match [Member] | ||||||
Profit sharing/401(k) plan disclosures [Line Items] | ||||||
Employee 401(k) contribution receiving employer match, percent of wages | 5.00% | |||||
Employees under the age of 50 [Member] | ||||||
Profit sharing/401(k) plan disclosures [Line Items] | ||||||
401(k) contributions, maximum annual employee contribution, amount | 18 | |||||
401(k) contributions, maximum annual employee contribution, percent of wages | 50.00% | |||||
Employees aged 50 or older [Member] | ||||||
Profit sharing/401(k) plan disclosures [Line Items] | ||||||
401(k) contributions, maximum annual employee contribution, amount | $23 | |||||
[1] | Includes expense for profit sharing contributions, as they vary based on our performance. Excludes expense for stock-based compensation, which is discussed in Note 10: Share-based compensation. |
Postretirement_benefits_obliga
Postretirement benefits (obligations and funded status) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in benefit obligation | |||
Interest cost | $4,553 | $3,652 | $6,061 |
Amounts recognized in balance sheets | |||
Other non-current assets | 24,243 | 24,981 | |
Amounts recognized in accumulated other comprehensive loss | |||
Unrecognized prior service credit | 19,863 | 21,284 | |
Unrecognized net actuarial loss | -65,073 | -70,350 | |
Tax effect | 12,805 | 14,192 | |
Amount recognized in accumulated other comprehensive loss, net of tax | -32,405 | -34,874 | |
Amortization period net actuarial loss | 17 years | ||
Amounts in accumulated other comprehensive loss which are expected to be recognized in the next 12 months | |||
Prior service credit | -1,421 | ||
Net actuarial loss | 3,120 | ||
Total | 1,699 | ||
Postretirement benefit plan [Member] | |||
Postretirement benefits [Line Items] | |||
Actuarial gain due to EGWP | 15,600 | ||
Remaining amortization period for actuarial gain due to EGWP | 17 years | ||
Plan amendment impact on benefit obligation | 5,063 | ||
Recognition period for prior service credit generated by 2012 plan amendment | 17 years | ||
Change in benefit obligation | |||
Benefit obligation, beginning of year | 108,567 | 117,230 | |
Interest cost | 4,414 | 3,535 | |
Net actuarial (gain) loss | -3,513 | -2,666 | |
Benefits paid from plan assets and company funds | -9,878 | -10,386 | |
Medicare Part D reimbursements | 842 | 854 | |
Benefit obligation, end of year | 100,432 | 108,567 | 117,230 |
Change in plan assets | |||
Fair value of plan assets, beginning of year | 133,548 | 122,223 | |
Return on plan assets | 7,701 | 18,886 | |
Benefits paid | -8,434 | -7,561 | |
Transfer of assets to VEBA trust | -8,140 | ||
Fair value of plan assets, end of year | 124,675 | 133,548 | 122,223 |
Funded status | 24,243 | 24,981 | |
Amounts recognized in balance sheets | |||
Other non-current assets | 24,243 | 24,981 | |
Accrued liabilities | 0 | 0 | |
Other non-current liabilities | 0 | 0 | |
Amounts recognized in accumulated other comprehensive loss | |||
Weighted-average amortization period, prior service credit | 21 years | ||
Pension plan [Member] | |||
Change in benefit obligation | |||
Benefit obligation, beginning of year | 3,428 | 3,872 | |
Interest cost | 139 | 117 | |
Net actuarial (gain) loss | 621 | -237 | |
Benefits paid from plan assets and company funds | -324 | -324 | |
Benefit obligation, end of year | 3,864 | 3,428 | |
Change in plan assets | |||
Funded status | -3,864 | -3,428 | |
Amounts recognized in balance sheets | |||
Other non-current assets | 0 | 0 | |
Accrued liabilities | 324 | 324 | |
Other non-current liabilities | $3,540 | $3,104 |
Postretirement_benefits_net_pe
Postretirement benefits (net periodic benefit (income) expense and actuarial assumptions) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net periodic benefit (income) expense | |||
Interest cost | $4,553 | $3,652 | $6,061 |
Expected return on plan assets | -8,734 | -8,030 | -7,803 |
Amortization of prior service credit | -1,421 | -1,421 | -3,055 |
Amortization of net actuarial losses | 3,418 | 4,439 | 5,879 |
Net periodic benefit (income) expense | -2,184 | -1,360 | 1,082 |
Actuarial assumptions | |||
Discount rate, benefit obligation | 3.45% | 4.25% | |
Discount rate, net periodic benefit (income) expense | 4.25% | 3.15% | 4.20% |
Postretirement benefit plan [Member] | |||
Net periodic benefit (income) expense | |||
Interest cost | 4,414 | 3,535 | |
Actuarial assumptions | |||
Expected return on plan assets | 6.75% | 6.75% | 7.25% |
Effect of one-percentage-point change in assumed health care cost trend rates | |||
One percentage point increase, effect on total of service and interest cost | 55 | ||
One percentage point decrease, effect on total of service and interest cost | -52 | ||
One percentage point increase, effect on benefit obligation | 1,607 | ||
One percentage point decrease, effect on benefit obligation | -1,506 | ||
Postretirement benefit plan [Member] | Participants under age 65 [Member] | |||
Health care cost trend rates | |||
Health care cost trend rate assumed for next year | 7.50% | 7.75% | 8.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2021 | 2021 | 2021 |
Postretirement benefit plan [Member] | Participants age 65 and older [Member] | |||
Health care cost trend rates | |||
Health care cost trend rate assumed for next year | 7.00% | 7.25% | 7.50% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2020 | 2020 | 2020 |
Pension plan [Member] | |||
Net periodic benefit (income) expense | |||
Interest cost | $139 | $117 |
Postretirement_benefits_plan_a
Postretirement benefits (plan assets) (Details) (Postretirement benefit plan [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Postretirement benefits [Line Items] | |||
Allocation of plan assets | 100.00% | 100.00% | |
Fair value of plan assets | $124,675 | $133,548 | $122,223 |
Quoted prices in active markets for identical assets (Level 1) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 28,967 | 43,197 | |
Significant other observable inputs (Level 2) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 95,708 | 90,351 | |
Significant unobservable inputs (Level 3) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity securities [Member] | International [Member] | |||
Postretirement benefits [Line Items] | |||
Allocation of plan assets | 18.00% | 18.00% | |
Target allocation of plan assets | 18.00% | ||
Fair value of plan assets | 22,416 | 24,269 | |
Equity securities [Member] | International [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 21,823 | 23,397 | |
Equity securities [Member] | International [Member] | Significant other observable inputs (Level 2) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 593 | 872 | |
Equity securities [Member] | International [Member] | Significant unobservable inputs (Level 3) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity securities [Member] | Large capitalization [Member] | United States [Member] | |||
Postretirement benefits [Line Items] | |||
Allocation of plan assets | 33.00% | 35.00% | |
Target allocation of plan assets | 33.00% | ||
Fair value of plan assets | 40,847 | 45,876 | |
Equity securities [Member] | Large capitalization [Member] | United States [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 0 | 3,033 | |
Equity securities [Member] | Large capitalization [Member] | United States [Member] | Significant other observable inputs (Level 2) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 40,847 | 42,843 | |
Equity securities [Member] | Large capitalization [Member] | United States [Member] | Significant unobservable inputs (Level 3) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity securities [Member] | Small and mid-capitalization [Member] | United States [Member] | |||
Postretirement benefits [Line Items] | |||
Allocation of plan assets | 7.00% | 7.00% | |
Target allocation of plan assets | 7.00% | ||
Fair value of plan assets | 8,702 | 9,646 | |
Equity securities [Member] | Small and mid-capitalization [Member] | United States [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 7,090 | 9,470 | |
Equity securities [Member] | Small and mid-capitalization [Member] | United States [Member] | Significant other observable inputs (Level 2) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 1,612 | 176 | |
Equity securities [Member] | Small and mid-capitalization [Member] | United States [Member] | Significant unobservable inputs (Level 3) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Mortgage-backed securities [Member] | |||
Postretirement benefits [Line Items] | |||
Allocation of plan assets | 14.00% | 12.00% | |
Fair value of plan assets | 17,713 | 16,060 | |
Mortgage-backed securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Mortgage-backed securities [Member] | Significant other observable inputs (Level 2) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 17,713 | 16,060 | |
Mortgage-backed securities [Member] | Significant unobservable inputs (Level 3) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Government debt securities [Member] | |||
Postretirement benefits [Line Items] | |||
Allocation of plan assets | 14.00% | 11.00% | |
Fair value of plan assets | 17,031 | 14,946 | |
Government debt securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Government debt securities [Member] | Significant other observable inputs (Level 2) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 17,031 | 14,946 | |
Government debt securities [Member] | Significant unobservable inputs (Level 3) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. corporate debt securities [Member] | |||
Postretirement benefits [Line Items] | |||
Allocation of plan assets | 14.00% | 10.00% | |
Fair value of plan assets | 17,823 | 13,287 | |
U.S. corporate debt securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. corporate debt securities [Member] | Significant other observable inputs (Level 2) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 17,823 | 13,287 | |
U.S. corporate debt securities [Member] | Significant unobservable inputs (Level 3) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other debt securities [Member] | |||
Postretirement benefits [Line Items] | |||
Allocation of plan assets | 0.00% | 7.00% | |
Fair value of plan assets | 143 | 9,464 | |
Other debt securities [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 54 | 7,297 | |
Other debt securities [Member] | Significant other observable inputs (Level 2) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | 89 | 2,167 | |
Other debt securities [Member] | Significant unobservable inputs (Level 3) [Member] | |||
Postretirement benefits [Line Items] | |||
Fair value of plan assets | $0 | $0 | |
Fixed income securities [Member] | |||
Postretirement benefits [Line Items] | |||
Target allocation of plan assets | 42.00% |
Postretirement_benefits_cash_f
Postretirement benefits (cash flows) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Postretirement benefit plan [Member] | |||
Postretirement benefits [Line Items] | |||
Company contributions | $0 | $0 | $7,600 |
Expected benefit payments | |||
2015 | 9,100 | ||
2016 | 9,200 | ||
2017 | 9,400 | ||
2018 | 9,100 | ||
2019 | 8,500 | ||
2020 - 2024 | 35,100 | ||
Pension plan [Member] | |||
Postretirement benefits [Line Items] | |||
Cash surrender value of insurance polices which fund pension plan | 7,239 | 6,914 | |
Expected benefit payments | |||
2015 | 320 | ||
2016 | 320 | ||
2017 | 310 | ||
2018 | 300 | ||
2019 | 290 | ||
2020 - 2024 | $1,280 |
Debt_and_lease_obligations_deb
Debt and lease obligations (debt) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2011 | Nov. 30, 2012 | Oct. 31, 2014 | Oct. 31, 2004 | Dec. 31, 2011 | Dec. 31, 2009 | ||
Debt instruments [Line Items] | |||||||||||
Long-term portion of debt | $393,401 | $385,115 | |||||||||
Amount drawn on credit facility | 160,000 | 0 | |||||||||
Capital lease obligations due within one year | 911 | 563 | |||||||||
Total debt | 554,312 | 640,704 | |||||||||
Ratio of EBITDA to interest expense | 2 | ||||||||||
Ratio of total debt less unrestricted cash to EBITDA | 2.75 | ||||||||||
Loss on early debt extinguishment | 0 | 0 | 5,258 | ||||||||
Payments on long-term debt | 254,403 | 1,555 | 288,938 | ||||||||
Senior notes due 2019 [Member] | |||||||||||
Debt instruments [Line Items] | |||||||||||
Long-term portion of debt | 200,000 | 200,000 | |||||||||
Debt issuance date | 15-Mar-11 | ||||||||||
Principal amount issued | 200,000 | ||||||||||
Stated interest rate | 7.00% | ||||||||||
Debt maturity date | 15-Mar-19 | ||||||||||
Proceeds from offering, net of offering costs | 196,195 | ||||||||||
Fair value of notes outstanding | 209,000 | ||||||||||
Senior notes due 2019 [Member] | First optional redemption period [Member] | |||||||||||
Debt instruments [Line Items] | |||||||||||
Redemption period, end date | 15-Mar-15 | ||||||||||
Redemption price | 100.00% | ||||||||||
Senior notes due 2019 [Member] | Second optional redemption period [Member] | |||||||||||
Debt instruments [Line Items] | |||||||||||
Redemption period, start date | 15-Mar-15 | ||||||||||
Senior notes due 2019 [Member] | Second optional redemption period [Member] | Minimum [Member] | |||||||||||
Debt instruments [Line Items] | |||||||||||
Redemption price | 100.00% | ||||||||||
Senior notes due 2019 [Member] | Second optional redemption period [Member] | Maximum [Member] | |||||||||||
Debt instruments [Line Items] | |||||||||||
Redemption price | 103.50% | ||||||||||
Senior notes due 2019 [Member] | Mandatory redemption [Member] | |||||||||||
Debt instruments [Line Items] | |||||||||||
Redemption price | 101.00% | ||||||||||
Senior notes due 2020 [Member] | |||||||||||
Debt instruments [Line Items] | |||||||||||
Long-term portion of debt | 191,933 | [1] | 183,761 | [1] | |||||||
Increase (decrease) in debt due to fair value adjustment | -8,067 | -16,239 | |||||||||
Debt issuance date | 27-Nov-12 | ||||||||||
Principal amount issued | 200,000 | ||||||||||
Stated interest rate | 6.00% | ||||||||||
Debt maturity date | 15-Nov-20 | ||||||||||
Proceeds from offering, net of offering costs | 196,340 | ||||||||||
Fair value of notes outstanding | 210,000 | ||||||||||
Senior notes due 2020 [Member] | First optional redemption period [Member] | |||||||||||
Debt instruments [Line Items] | |||||||||||
Redemption period, end date | 15-Nov-15 | ||||||||||
Notes redeemable during redemption period | 35.00% | ||||||||||
Redemption price | 106.00% | ||||||||||
Senior notes due 2020 [Member] | Second optional redemption period [Member] | |||||||||||
Debt instruments [Line Items] | |||||||||||
Redemption period, end date | 15-Nov-16 | ||||||||||
Redemption price | 100.00% | ||||||||||
Senior notes due 2020 [Member] | Third optional redemption period [Member] | |||||||||||
Debt instruments [Line Items] | |||||||||||
Redemption period, start date | 15-Nov-16 | ||||||||||
Senior notes due 2020 [Member] | Third optional redemption period [Member] | Minimum [Member] | |||||||||||
Debt instruments [Line Items] | |||||||||||
Redemption price | 100.00% | ||||||||||
Senior notes due 2020 [Member] | Third optional redemption period [Member] | Maximum [Member] | |||||||||||
Debt instruments [Line Items] | |||||||||||
Redemption price | 103.00% | ||||||||||
Senior notes due 2020 [Member] | Mandatory redemption [Member] | |||||||||||
Debt instruments [Line Items] | |||||||||||
Redemption price | 101.00% | ||||||||||
Senior, unsecured notes due 2014 [Member] | |||||||||||
Debt instruments [Line Items] | |||||||||||
Long-term debt due within one year | 0 | 255,026 | [2] | ||||||||
Increase (decrease) in debt due to fair value adjustment | 1,569 | ||||||||||
Debt issuance date | 1-Oct-04 | ||||||||||
Principal amount issued | 275,000 | ||||||||||
Stated interest rate | 5.13% | ||||||||||
Debt maturity date | 1-Oct-14 | ||||||||||
Proceeds from offering, net of offering costs | 272,276 | ||||||||||
Principal amount retired | 10,000 | 11,500 | |||||||||
Payments on long-term debt | 253,500 | ||||||||||
Capital lease obligations [Member] | |||||||||||
Debt instruments [Line Items] | |||||||||||
Long-term portion of debt | 1,468 | 1,354 | |||||||||
Senior notes due 2015 [Member] | |||||||||||
Debt instruments [Line Items] | |||||||||||
Principal amount retired | $200,000 | ||||||||||
[1] | Includes decrease due to cumulative change in fair value of hedged debt of $8,067 as of DecemberB 31, 2014 and $16,239 as of DecemberB 31, 2013. | ||||||||||
[2] | Includes increase due to cumulative change in fair value of hedged debt of $1,569 as of DecemberB 31, 2013. |
Debt_and_lease_obligations_cre
Debt and lease obligations (credit facility) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Credit facility [Line Items] | ||||
Credit facility, date of expiration | 21-Feb-19 | |||
Daily average amount outstanding | $43,675 | $0 | $0 | |
Daily average amount outstanding, weighted-average interest rate | 1.63% | |||
Amount drawn on credit facility | 160,000 | 0 | ||
Credit facility, amount outstanding, interest rate | 1.63% | |||
Credit facility commitment | 350,000 | |||
Outstanding letters of credit | -12,728 | [1] | ||
Net available for borrowing as of December 31, 2014 | $177,272 | |||
Minimum [Member] | ||||
Credit facility [Line Items] | ||||
Commitment fee percentage | 0.20% | |||
Maximum [Member] | ||||
Credit facility [Line Items] | ||||
Commitment fee percentage | 0.40% | |||
[1] | We use standby letters of credit primarily to collateralize certain obligations related 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 credit facility. |
Debt_and_lease_obligations_lea
Debt and lease obligations (lease obligations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Capital lease obligations [Line Items] | |||
Capital lease obligations | $2,379 | $1,917 | |
Capital lease obligations, expiration date | 31-Oct-18 | ||
Capital lease obligations, future payments | |||
2015 | 934 | ||
2016 | 881 | ||
2017 | 526 | ||
2018 | 108 | ||
Total minimum lease payments | 2,449 | ||
Less portion representing interest | -70 | ||
Present value of minimum lease payments | 2,379 | ||
Operating lease obligations, future payments | |||
2015 | 9,097 | ||
2016 | 8,204 | ||
2017 | 4,112 | ||
2018 | 2,456 | ||
2019 | 1,902 | ||
Thereafter | 1,402 | ||
Total minimum lease payments | 27,173 | ||
Net rental expense | 13,099 | 11,855 | 13,390 |
Machinery and equipment [Member] | |||
Capital lease obligations [Line Items] | |||
Machinery and equipment | 2,911 | 700 | |
Accumulated depreciation | -926 | -131 | |
Net assets under capital leases | $1,985 | $569 |
Other_commitments_and_continge1
Other commitments and contingencies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Environmental matters [Line Items] | |||
Accruals for environmental matters | $7,942 | $8,294 | |
Expense for environmental matters | 1,079 | 1,169 | 969 |
Self-insurance | |||
Workers' compensation liability | 4,040 | 4,560 | |
Liability for medical and dental benefits for active and disabled employees | 2,361 | 3,322 | |
Liability for medical and dental benefits for active and disabled employees, difference between discounted and undiscounted amount | 149 | ||
Environmental insurance policy purchased during 2002 [Member] | Environmental remediation costs [Member] | |||
Environmental matters [Line Items] | |||
Accruals for environmental matters | 2,933 | ||
Environmental insurance coverage | 12,911 | ||
Cumulative benefits received under insurance policy | 9,978 | ||
Environmental insurance policy purchased during 2002 [Member] | Third-party claims [Member] | |||
Environmental matters [Line Items] | |||
Environmental insurance coverage | 10,000 | ||
Environmental insurance policy for facilities purchased subsequent to 2002 [Member] | |||
Environmental matters [Line Items] | |||
Environmental insurance coverage | $15,000 |
Shareholders_equity_Details
Shareholders' equity (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Common shares repurchased | |||
Common shares authorized for repurchase | 10,000,000 | ||
Common shares that remain available for repurchase | 1,962,000 | ||
Common shares repurchased | 1,133,000 | 1,162,000 | 999,000 |
Payments for common shares repurchased | $60,119 | $48,798 | $27,155 |
Common stock purchase rights | |||
Number of common shares each right entitles holder to purchase | 1 | ||
Exercise price of common stock purchase rights (per share) | $100 | ||
Beneficial ownership that could trigger the exercise of stock purchase rights | 20.00% | ||
Percentage of market price of one common share used to determine number of shares purchasable | 50.00% | ||
Expiration date of rights | 31-Dec-16 | ||
Redemption price of stock purchase rights (per right) | 0.01 |
Business_segment_information_D
Business segment information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business segment information [Line Items] | |||||||||||
Number of reportable business segments | 3 | ||||||||||
Depreciation and amortization expense related to corporate assets which was allocated to segments | $34,801 | $37,893 | $40,729 | ||||||||
Total revenue from external customers: | 448,513 | 413,204 | 405,410 | 406,955 | 417,758 | 398,080 | 381,433 | 387,553 | 1,674,082 | 1,584,824 | 1,514,917 |
Operating income: | 332,633 | 317,914 | 302,028 | ||||||||
Depreciation and amortization expense: | 65,842 | 64,473 | 65,652 | ||||||||
Asset impairment charges | 6,468 | 5,000 | 6,468 | 5,000 | 0 | ||||||
Total assets: | 1,688,391 | 1,569,529 | 1,688,391 | 1,569,529 | 1,412,440 | ||||||
Capital asset purchases: | 41,119 | 37,459 | 35,193 | ||||||||
Customer concentration risk [Member] | |||||||||||
Business segment information [Line Items] | |||||||||||
Percentage of concentration risk | 10.00% | 10.00% | 10.00% | ||||||||
Checks, including contract settlements [Member] | |||||||||||
Business segment information [Line Items] | |||||||||||
Total revenue from external customers: | 870,910 | 884,605 | 890,018 | ||||||||
Small Business Services [Member] | Checks, including contract settlements [Member] | Product concentration risk [Member] | |||||||||||
Business segment information [Line Items] | |||||||||||
Percentage of concentration risk | 40.70% | ||||||||||
Reportable business segments [Member] | Small Business Services [Member] | |||||||||||
Business segment information [Line Items] | |||||||||||
Total revenue from external customers: | 1,129,250 | 1,050,250 | 961,631 | ||||||||
Operating income: | 188,335 | 175,888 | 160,363 | ||||||||
Depreciation and amortization expense: | 44,622 | 45,329 | 44,408 | ||||||||
Asset impairment charges | 6,468 | 5,000 | 0 | ||||||||
Total assets: | 956,349 | 943,868 | 956,349 | 943,868 | 877,840 | ||||||
Capital asset purchases: | 0 | 0 | 0 | ||||||||
Reportable business segments [Member] | Financial Services [Member] | |||||||||||
Business segment information [Line Items] | |||||||||||
Total revenue from external customers: | 368,384 | 343,160 | 341,135 | ||||||||
Operating income: | 86,799 | 82,343 | 77,728 | ||||||||
Depreciation and amortization expense: | 14,471 | 11,231 | 12,059 | ||||||||
Asset impairment charges | 0 | 0 | 0 | ||||||||
Total assets: | 267,258 | 109,612 | 267,258 | 109,612 | 82,150 | ||||||
Capital asset purchases: | 0 | 0 | 0 | ||||||||
Reportable business segments [Member] | Direct Checks [Member] | |||||||||||
Business segment information [Line Items] | |||||||||||
Total revenue from external customers: | 176,448 | 191,414 | 212,151 | ||||||||
Operating income: | 57,499 | 59,683 | 63,937 | ||||||||
Depreciation and amortization expense: | 6,749 | 7,913 | 9,185 | ||||||||
Asset impairment charges | 0 | 0 | 0 | ||||||||
Total assets: | 164,171 | 167,283 | 164,171 | 167,283 | 169,936 | ||||||
Capital asset purchases: | 0 | 0 | 0 | ||||||||
Corporate [Member] | |||||||||||
Business segment information [Line Items] | |||||||||||
Total revenue from external customers: | 0 | 0 | 0 | ||||||||
Operating income: | 0 | 0 | 0 | ||||||||
Depreciation and amortization expense: | 0 | 0 | 0 | ||||||||
Asset impairment charges | 0 | 0 | 0 | ||||||||
Total assets: | 300,613 | 348,766 | 300,613 | 348,766 | 282,514 | ||||||
Capital asset purchases: | $41,119 | $37,459 | $35,193 |
Business_segment_information_r
Business segment information (revenue by product and service) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue by product and service category | |||||||||||
Total revenue | $448,513 | $413,204 | $405,410 | $406,955 | $417,758 | $398,080 | $381,433 | $387,553 | $1,674,082 | $1,584,824 | $1,514,917 |
Checks, including contract settlements [Member] | |||||||||||
Revenue by product and service category | |||||||||||
Total revenue | 870,910 | 884,605 | 890,018 | ||||||||
Marketing solutions and other services [Member] | |||||||||||
Revenue by product and service category | |||||||||||
Total revenue | 427,098 | 343,006 | 285,520 | ||||||||
Forms [Member] | |||||||||||
Revenue by product and service category | |||||||||||
Total revenue | 216,842 | 200,560 | 200,379 | ||||||||
Accessories and other products [Member] | |||||||||||
Revenue by product and service category | |||||||||||
Total revenue | $159,232 | $156,653 | $139,000 |
Business_segment_information_g
Business segment information (geographic information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||
Geographic information [Line Items] | ||||||||||||||||
Total revenue | $448,513 | $413,204 | $405,410 | $406,955 | $417,758 | $398,080 | $381,433 | $387,553 | $1,674,082 | $1,584,824 | $1,514,917 | |||||
Long-lived assets | 1,323,050 | [1] | 1,205,765 | [1] | 1,323,050 | [1] | 1,205,765 | [1] | 1,145,799 | [1] | ||||||
United States [Member] | ||||||||||||||||
Geographic information [Line Items] | ||||||||||||||||
Total revenue | 1,593,898 | 1,501,176 | 1,427,593 | |||||||||||||
Long-lived assets | 1,310,830 | [1] | 1,191,084 | [1] | 1,310,830 | [1] | 1,191,084 | [1] | 1,131,525 | [1] | ||||||
Foreign, primarily Canada | ||||||||||||||||
Geographic information [Line Items] | ||||||||||||||||
Total revenue | 80,184 | 83,648 | 87,324 | |||||||||||||
Long-lived assets | $12,220 | [1] | $14,681 | [1] | $12,220 | [1] | $14,681 | [1] | $14,274 | [1] | ||||||
[1] | Long-lived assets consist of total assets less current assets and long-term investments. |
Supplemental_guarantor_financi2
Supplemental guarantor financial information (Condensed Consolidating Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $61,541 | $121,089 | $45,435 | $28,687 |
Trade accounts receivable, net | 113,656 | 88,049 | ||
Inventories and supplies | 39,411 | 28,966 | ||
Deferred income taxes | 10,159 | 6,946 | ||
Funds held for customers | 43,604 | 42,425 | ||
Other current assets | 50,519 | 31,838 | ||
Total current assets | 318,890 | 319,313 | ||
Deferred income taxes | 1,411 | 1,851 | ||
Long-term investments | 46,451 | 44,451 | ||
Property, plant and equipment, net | 87,623 | 101,343 | ||
Assets held for sale | 26,819 | 25,451 | ||
Intangibles, net | 207,180 | 153,576 | ||
Goodwill | 868,376 | 822,777 | 789,636 | |
Investments In consolidated subsidiaries | 0 | 0 | ||
Intercompany receivable | 0 | 0 | ||
Other non-current assets | 131,641 | 100,767 | ||
Total assets | 1,688,391 | 1,569,529 | 1,412,440 | |
Current liabilities: | ||||
Accounts payable | 87,216 | 71,492 | ||
Accrued liabilities | 219,121 | 162,990 | ||
Short-term borrowings | 160,000 | 0 | ||
Long-term debt due within one year | 911 | 255,589 | ||
Total current liabilities | 467,248 | 490,071 | ||
Long-term debt | 393,401 | 385,115 | ||
Deferred income taxes | 95,838 | 82,814 | ||
Intercompany payable | 0 | 0 | ||
Other non-current liabilities | 84,407 | 61,072 | ||
Total shareholders' equity | 647,497 | 550,457 | 432,935 | 302,689 |
Total liabilities and shareholders' equity | 1,688,391 | 1,569,529 | ||
Deluxe Corporation | ||||
Current assets: | ||||
Cash and cash equivalents | 8,335 | 71,972 | 14,862 | 3,047 |
Trade accounts receivable, net | 0 | 0 | ||
Inventories and supplies | 0 | 0 | ||
Deferred income taxes | 8,929 | 2,698 | ||
Funds held for customers | 0 | 0 | ||
Other current assets | 8,538 | 8,266 | ||
Total current assets | 25,802 | 82,936 | ||
Deferred income taxes | 660 | 0 | ||
Long-term investments | 38,623 | 35,155 | ||
Property, plant and equipment, net | 4,868 | 0 | ||
Assets held for sale | 0 | 0 | ||
Intangibles, net | 987 | 0 | ||
Goodwill | 0 | 0 | ||
Investments In consolidated subsidiaries | 1,268,918 | 1,155,705 | ||
Intercompany receivable | 0 | 0 | ||
Other non-current assets | 9,675 | 8,077 | ||
Total assets | 1,349,533 | 1,281,873 | ||
Current liabilities: | ||||
Accounts payable | 13,792 | 11,831 | ||
Accrued liabilities | 26,278 | 13,794 | ||
Short-term borrowings | 160,000 | |||
Long-term debt due within one year | 903 | 255,589 | ||
Total current liabilities | 200,973 | 281,214 | ||
Long-term debt | 393,387 | 385,115 | ||
Deferred income taxes | 0 | 2,821 | ||
Intercompany payable | 83,294 | 40,565 | ||
Other non-current liabilities | 24,382 | 21,701 | ||
Total shareholders' equity | 647,497 | 550,457 | ||
Total liabilities and shareholders' equity | 1,349,533 | 1,281,873 | ||
Guarantor subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 4,342 | 6,991 | 3,228 | 1,661 |
Trade accounts receivable, net | 100,197 | 70,317 | ||
Inventories and supplies | 34,097 | 24,173 | ||
Deferred income taxes | 1,182 | 4,198 | ||
Funds held for customers | 0 | 0 | ||
Other current assets | 38,912 | 20,118 | ||
Total current assets | 178,730 | 125,797 | ||
Deferred income taxes | 0 | 0 | ||
Long-term investments | 7,828 | 9,296 | ||
Property, plant and equipment, net | 76,306 | 93,472 | ||
Assets held for sale | 3,102 | 4,046 | ||
Intangibles, net | 203,967 | 151,361 | ||
Goodwill | 866,659 | 820,898 | ||
Investments In consolidated subsidiaries | 90,960 | 82,918 | ||
Intercompany receivable | 82,758 | 39,192 | ||
Other non-current assets | 121,549 | 92,461 | ||
Total assets | 1,631,859 | 1,419,441 | ||
Current liabilities: | ||||
Accounts payable | 73,380 | 54,655 | ||
Accrued liabilities | 141,816 | 97,577 | ||
Short-term borrowings | 0 | |||
Long-term debt due within one year | 0 | 0 | ||
Total current liabilities | 215,196 | 152,232 | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | 96,498 | 79,993 | ||
Intercompany payable | 0 | 0 | ||
Other non-current liabilities | 51,247 | 31,511 | ||
Total shareholders' equity | 1,268,918 | 1,155,705 | ||
Total liabilities and shareholders' equity | 1,631,859 | 1,419,441 | ||
Non-guarantor subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 52,193 | 45,229 | 31,346 | 23,979 |
Trade accounts receivable, net | 13,459 | 17,732 | ||
Inventories and supplies | 5,314 | 4,793 | ||
Deferred income taxes | 48 | 50 | ||
Funds held for customers | 43,604 | 42,425 | ||
Other current assets | 3,069 | 3,454 | ||
Total current assets | 117,687 | 113,683 | ||
Deferred income taxes | 1,411 | 1,851 | ||
Long-term investments | 0 | 0 | ||
Property, plant and equipment, net | 6,449 | 7,871 | ||
Assets held for sale | 23,717 | 21,405 | ||
Intangibles, net | 2,226 | 2,215 | ||
Goodwill | 1,717 | 1,879 | ||
Investments In consolidated subsidiaries | 0 | 0 | ||
Intercompany receivable | 536 | 1,373 | ||
Other non-current assets | 417 | 229 | ||
Total assets | 154,160 | 150,506 | ||
Current liabilities: | ||||
Accounts payable | 3,373 | 8,109 | ||
Accrued liabilities | 51,027 | 51,619 | ||
Short-term borrowings | 0 | |||
Long-term debt due within one year | 8 | 0 | ||
Total current liabilities | 54,408 | 59,728 | ||
Long-term debt | 14 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Other non-current liabilities | 8,778 | 7,860 | ||
Total shareholders' equity | 90,960 | 82,918 | ||
Total liabilities and shareholders' equity | 154,160 | 150,506 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | -3,329 | -3,103 | -4,001 | 0 |
Trade accounts receivable, net | 0 | 0 | ||
Inventories and supplies | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Funds held for customers | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | -3,329 | -3,103 | ||
Deferred income taxes | -660 | 0 | ||
Long-term investments | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | ||
Assets held for sale | 0 | 0 | ||
Intangibles, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investments In consolidated subsidiaries | -1,359,878 | -1,238,623 | ||
Intercompany receivable | -83,294 | -40,565 | ||
Other non-current assets | 0 | 0 | ||
Total assets | -1,447,161 | -1,282,291 | ||
Current liabilities: | ||||
Accounts payable | -3,329 | -3,103 | ||
Accrued liabilities | 0 | 0 | ||
Short-term borrowings | 0 | |||
Long-term debt due within one year | 0 | 0 | ||
Total current liabilities | -3,329 | -3,103 | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | -660 | 0 | ||
Intercompany payable | -83,294 | -40,565 | ||
Other non-current liabilities | 0 | 0 | ||
Total shareholders' equity | -1,359,878 | -1,238,623 | ||
Total liabilities and shareholders' equity | ($1,447,161) | ($1,282,291) |
Supplemental_guarantor_financi3
Supplemental guarantor financial information (Condensed Consolidating Statements of Comprehensive Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Consolidating Statements of Comprehensive Income | |||||||||||
Product revenue | $1,410,858 | $1,369,711 | $1,345,929 | ||||||||
Service revenue | 263,224 | 215,113 | 168,988 | ||||||||
Total revenue | 448,513 | 413,204 | 405,410 | 406,955 | 417,758 | 398,080 | 381,433 | 387,553 | 1,674,082 | 1,584,824 | 1,514,917 |
Cost of products | -501,871 | -463,487 | -446,994 | ||||||||
Cost of services | -104,407 | -97,629 | -77,381 | ||||||||
Total cost of revenue | -606,278 | -561,116 | -524,375 | ||||||||
Gross profit | 283,204 | 263,054 | 259,519 | 262,027 | 265,709 | 255,857 | 247,886 | 254,256 | 1,067,804 | 1,023,708 | 990,542 |
Operating expenses | -727,968 | -700,794 | -688,386 | ||||||||
Asset impairment charges | -6,468 | -5,000 | -6,468 | -5,000 | 0 | ||||||
Net loss on sale of facility | -735 | 0 | -128 | ||||||||
Operating income | 332,633 | 317,914 | 302,028 | ||||||||
Loss on early debt extinguishment | 0 | 0 | -5,258 | ||||||||
Interest expense | -36,529 | -38,301 | -46,847 | ||||||||
Other income | 1,077 | 1,446 | 830 | ||||||||
(Loss) income before income taxes | 297,181 | 281,059 | 250,753 | ||||||||
Income tax benefit (provision) | -97,387 | -94,407 | -80,261 | ||||||||
(Loss) income before equity in earnings of consolidated subsidiaries | 199,794 | 186,652 | 170,492 | ||||||||
Equity In earnings of consolidated subsidiaries | 0 | 0 | 0 | ||||||||
Net income | 57,963 | 44,431 | 50,076 | 47,324 | 45,722 | 46,903 | 48,152 | 45,875 | 199,794 | 186,652 | 170,492 |
Comprehensive income | 196,880 | 193,875 | 189,246 | ||||||||
Deluxe Corporation | |||||||||||
Condensed Consolidating Statements of Comprehensive Income | |||||||||||
Product revenue | 0 | 0 | 0 | ||||||||
Service revenue | 78,019 | 9,042 | 8,902 | ||||||||
Total revenue | 78,019 | 9,042 | 8,902 | ||||||||
Cost of products | 0 | 0 | 0 | ||||||||
Cost of services | -83,982 | -7,597 | -5,637 | ||||||||
Total cost of revenue | -83,982 | -7,597 | -5,637 | ||||||||
Gross profit | -5,963 | 1,445 | 3,265 | ||||||||
Operating expenses | 0 | 0 | 0 | ||||||||
Asset impairment charges | 0 | 0 | |||||||||
Net loss on sale of facility | 0 | 0 | |||||||||
Operating income | -5,963 | 1,445 | 3,265 | ||||||||
Loss on early debt extinguishment | -5,258 | ||||||||||
Interest expense | -36,368 | -38,236 | -46,767 | ||||||||
Other income | 9,976 | 7,283 | 11,721 | ||||||||
(Loss) income before income taxes | -32,355 | -29,508 | -37,039 | ||||||||
Income tax benefit (provision) | 17,445 | 16,597 | 19,690 | ||||||||
(Loss) income before equity in earnings of consolidated subsidiaries | -14,910 | -12,911 | -17,349 | ||||||||
Equity In earnings of consolidated subsidiaries | 214,704 | 199,563 | 187,841 | ||||||||
Net income | 199,794 | 186,652 | 170,492 | ||||||||
Comprehensive income | 196,880 | 193,875 | 189,246 | ||||||||
Guarantor subsidiaries | |||||||||||
Condensed Consolidating Statements of Comprehensive Income | |||||||||||
Product revenue | 1,311,729 | 1,293,257 | 1,283,471 | ||||||||
Service revenue | 237,712 | 188,767 | 150,758 | ||||||||
Total revenue | 1,549,441 | 1,482,024 | 1,434,229 | ||||||||
Cost of products | -449,603 | -429,432 | -422,836 | ||||||||
Cost of services | -95,776 | -85,693 | -68,339 | ||||||||
Total cost of revenue | -545,379 | -515,125 | -491,175 | ||||||||
Gross profit | 1,004,062 | 966,899 | 943,054 | ||||||||
Operating expenses | -677,767 | -664,218 | -654,286 | ||||||||
Asset impairment charges | -6,468 | -5,000 | |||||||||
Net loss on sale of facility | -735 | -128 | |||||||||
Operating income | 319,092 | 297,681 | 288,640 | ||||||||
Loss on early debt extinguishment | 0 | ||||||||||
Interest expense | -12,157 | -8,442 | -12,819 | ||||||||
Other income | 2,496 | 2,027 | -1,341 | ||||||||
(Loss) income before income taxes | 309,431 | 291,266 | 274,480 | ||||||||
Income tax benefit (provision) | -109,289 | -105,812 | -99,674 | ||||||||
(Loss) income before equity in earnings of consolidated subsidiaries | 200,142 | 185,454 | 174,806 | ||||||||
Equity In earnings of consolidated subsidiaries | 14,562 | 14,109 | 13,035 | ||||||||
Net income | 214,704 | 199,563 | 187,841 | ||||||||
Comprehensive income | 210,756 | 205,595 | 205,245 | ||||||||
Non-guarantor subsidiaries | |||||||||||
Condensed Consolidating Statements of Comprehensive Income | |||||||||||
Product revenue | 99,129 | 76,454 | 62,458 | ||||||||
Service revenue | 30,047 | 34,962 | 26,625 | ||||||||
Total revenue | 129,176 | 111,416 | 89,083 | ||||||||
Cost of products | -52,268 | -34,055 | -24,158 | ||||||||
Cost of services | -9,693 | -12,532 | -9,042 | ||||||||
Total cost of revenue | -61,961 | -46,587 | -33,200 | ||||||||
Gross profit | 67,215 | 64,829 | 55,883 | ||||||||
Operating expenses | -47,711 | -46,041 | -45,760 | ||||||||
Asset impairment charges | 0 | 0 | |||||||||
Net loss on sale of facility | 0 | 0 | |||||||||
Operating income | 19,504 | 18,788 | 10,123 | ||||||||
Loss on early debt extinguishment | 0 | ||||||||||
Interest expense | 0 | -3 | -7 | ||||||||
Other income | 601 | 516 | 3,196 | ||||||||
(Loss) income before income taxes | 20,105 | 19,301 | 13,312 | ||||||||
Income tax benefit (provision) | -5,543 | -5,192 | -277 | ||||||||
(Loss) income before equity in earnings of consolidated subsidiaries | 14,562 | 14,109 | 13,035 | ||||||||
Equity In earnings of consolidated subsidiaries | 0 | 0 | 0 | ||||||||
Net income | 14,562 | 14,109 | 13,035 | ||||||||
Comprehensive income | 8,398 | 9,862 | 13,704 | ||||||||
Eliminations | |||||||||||
Condensed Consolidating Statements of Comprehensive Income | |||||||||||
Product revenue | 0 | 0 | 0 | ||||||||
Service revenue | -82,554 | -17,658 | -17,297 | ||||||||
Total revenue | -82,554 | -17,658 | -17,297 | ||||||||
Cost of products | 0 | 0 | 0 | ||||||||
Cost of services | 85,044 | 8,193 | 5,637 | ||||||||
Total cost of revenue | 85,044 | 8,193 | 5,637 | ||||||||
Gross profit | 2,490 | -9,465 | -11,660 | ||||||||
Operating expenses | -2,490 | 9,465 | 11,660 | ||||||||
Asset impairment charges | 0 | 0 | |||||||||
Net loss on sale of facility | 0 | 0 | |||||||||
Operating income | 0 | 0 | 0 | ||||||||
Loss on early debt extinguishment | 0 | ||||||||||
Interest expense | 11,996 | 8,380 | 12,746 | ||||||||
Other income | -11,996 | -8,380 | -12,746 | ||||||||
(Loss) income before income taxes | 0 | 0 | 0 | ||||||||
Income tax benefit (provision) | 0 | 0 | 0 | ||||||||
(Loss) income before equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | ||||||||
Equity In earnings of consolidated subsidiaries | -229,266 | -213,672 | -200,876 | ||||||||
Net income | -229,266 | -213,672 | -200,876 | ||||||||
Comprehensive income | ($219,154) | ($215,457) | ($218,949) |
Supplemental_guarantor_financi4
Supplemental guarantor financial information (Condensed Consolidating Statements of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Consolidating Statements of Cash Flows | |||
Net cash (used) provided by operating activities | $280,395 | $261,502 | $244,077 |
Cash flows from investing activities: | |||
Purchases of capital assets | -41,119 | -37,459 | -35,193 |
Payments for acquisitions, net of cash acquired | -105,029 | -69,709 | -34,172 |
Loans to distributors | -50 | -778 | -3,287 |
Proceeds from company-owned life insurance policies | 897 | 4,599 | 0 |
Proceeds from sale of facility | 8,451 | 0 | 2,613 |
Other | 807 | 2,297 | 1,526 |
Net cash provided (used) by investing activities | -136,043 | -101,050 | -68,513 |
Cash flows from financing activities: | |||
Net proceeds from short-term borrowings | 159,875 | 0 | 0 |
Payments on long-term debt, including costs of debt reacquisition | -254,403 | -1,555 | -288,938 |
Proceeds from issuing long-term debt | 0 | 0 | 200,000 |
Payments for debt issue costs | -1,085 | -236 | -4,504 |
Change in book overdrafts | 0 | 0 | -2,600 |
Proceeds from issuing shares under employee plans | 9,148 | 15,948 | 12,320 |
Excess tax benefit from share-based employee awards | 4,992 | 3,055 | 2,285 |
Payments for common shares repurchased | -60,119 | -48,798 | -27,155 |
Cash dividends paid to shareholders | -57,603 | -50,711 | -50,918 |
Advances from (to) consolidated subsidiaries | 0 | 0 | 0 |
Other | -150 | 0 | 0 |
Net cash provided (used) by financing activities | -199,345 | -82,297 | -159,510 |
Effect of exchange rate change on cash | -4,555 | -2,501 | 694 |
Net change in cash and cash equivalents | -59,548 | 75,654 | 16,748 |
Cash and cash equivalents, beginning of year | 121,089 | 45,435 | 28,687 |
Cash and cash equivalents, end of year | 61,541 | 121,089 | 45,435 |
Deluxe Corporation | |||
Condensed Consolidating Statements of Cash Flows | |||
Net cash (used) provided by operating activities | -12,298 | -7,462 | -10,325 |
Cash flows from investing activities: | |||
Purchases of capital assets | -1,269 | 0 | 0 |
Payments for acquisitions, net of cash acquired | -89,824 | 0 | 0 |
Loans to distributors | 0 | 0 | 0 |
Proceeds from company-owned life insurance policies | 897 | 3,641 | |
Proceeds from sale of facility | 0 | ||
Other | -432 | 1,181 | 379 |
Net cash provided (used) by investing activities | -90,628 | 4,822 | 379 |
Cash flows from financing activities: | |||
Net proceeds from short-term borrowings | 160,000 | ||
Payments on long-term debt, including costs of debt reacquisition | -254,376 | -224 | -288,938 |
Proceeds from issuing long-term debt | 200,000 | ||
Payments for debt issue costs | -1,085 | -236 | -4,504 |
Change in book overdrafts | -2,426 | ||
Proceeds from issuing shares under employee plans | 9,148 | 15,948 | 12,320 |
Excess tax benefit from share-based employee awards | 4,992 | 3,055 | 2,285 |
Payments for common shares repurchased | -60,119 | -48,798 | -27,155 |
Cash dividends paid to shareholders | -57,603 | -50,711 | -50,918 |
Advances from (to) consolidated subsidiaries | 238,332 | 140,716 | 181,097 |
Other | 0 | ||
Net cash provided (used) by financing activities | 39,289 | 59,750 | 21,761 |
Effect of exchange rate change on cash | 0 | 0 | 0 |
Net change in cash and cash equivalents | -63,637 | 57,110 | 11,815 |
Cash and cash equivalents, beginning of year | 71,972 | 14,862 | 3,047 |
Cash and cash equivalents, end of year | 8,335 | 71,972 | 14,862 |
Guarantor subsidiaries | |||
Condensed Consolidating Statements of Cash Flows | |||
Net cash (used) provided by operating activities | 278,281 | 243,906 | 244,091 |
Cash flows from investing activities: | |||
Purchases of capital assets | -38,118 | -32,659 | -31,561 |
Payments for acquisitions, net of cash acquired | -15,205 | -69,709 | -34,172 |
Loans to distributors | -50 | -778 | -3,227 |
Proceeds from company-owned life insurance policies | 0 | 958 | |
Proceeds from sale of facility | 2,613 | ||
Other | 1,225 | 1,104 | 1,162 |
Net cash provided (used) by investing activities | -43,697 | -101,084 | -65,185 |
Cash flows from financing activities: | |||
Net proceeds from short-term borrowings | -125 | ||
Payments on long-term debt, including costs of debt reacquisition | -20 | 0 | 0 |
Proceeds from issuing long-term debt | 0 | ||
Payments for debt issue costs | 0 | 0 | 0 |
Change in book overdrafts | 3,827 | ||
Proceeds from issuing shares under employee plans | 0 | 0 | 0 |
Excess tax benefit from share-based employee awards | 0 | 0 | 0 |
Payments for common shares repurchased | 0 | 0 | 0 |
Cash dividends paid to shareholders | 0 | 0 | 0 |
Advances from (to) consolidated subsidiaries | -236,938 | -139,059 | -181,166 |
Other | -150 | ||
Net cash provided (used) by financing activities | -237,233 | -139,059 | -177,339 |
Effect of exchange rate change on cash | 0 | 0 | 0 |
Net change in cash and cash equivalents | -2,649 | 3,763 | 1,567 |
Cash and cash equivalents, beginning of year | 6,991 | 3,228 | 1,661 |
Cash and cash equivalents, end of year | 4,342 | 6,991 | 3,228 |
Non-guarantor subsidiaries | |||
Condensed Consolidating Statements of Cash Flows | |||
Net cash (used) provided by operating activities | 14,638 | 24,160 | 10,311 |
Cash flows from investing activities: | |||
Purchases of capital assets | -1,732 | -4,800 | -3,632 |
Payments for acquisitions, net of cash acquired | 0 | 0 | 0 |
Loans to distributors | 0 | 0 | -60 |
Proceeds from company-owned life insurance policies | 0 | 0 | |
Proceeds from sale of facility | 0 | ||
Other | 14 | 12 | -15 |
Net cash provided (used) by investing activities | -1,718 | -4,788 | -3,707 |
Cash flows from financing activities: | |||
Net proceeds from short-term borrowings | 0 | ||
Payments on long-term debt, including costs of debt reacquisition | -7 | -1,331 | 0 |
Proceeds from issuing long-term debt | 0 | ||
Payments for debt issue costs | 0 | 0 | 0 |
Change in book overdrafts | 0 | ||
Proceeds from issuing shares under employee plans | 0 | 0 | 0 |
Excess tax benefit from share-based employee awards | 0 | 0 | 0 |
Payments for common shares repurchased | 0 | 0 | 0 |
Cash dividends paid to shareholders | 0 | 0 | 0 |
Advances from (to) consolidated subsidiaries | -1,394 | -1,657 | 69 |
Other | 0 | ||
Net cash provided (used) by financing activities | -1,401 | -2,988 | 69 |
Effect of exchange rate change on cash | -4,555 | -2,501 | 694 |
Net change in cash and cash equivalents | 6,964 | 13,883 | 7,367 |
Cash and cash equivalents, beginning of year | 45,229 | 31,346 | 23,979 |
Cash and cash equivalents, end of year | 52,193 | 45,229 | 31,346 |
Eliminations | |||
Condensed Consolidating Statements of Cash Flows | |||
Net cash (used) provided by operating activities | -226 | 898 | 0 |
Cash flows from investing activities: | |||
Purchases of capital assets | 0 | 0 | 0 |
Payments for acquisitions, net of cash acquired | 0 | 0 | 0 |
Loans to distributors | 0 | 0 | 0 |
Proceeds from company-owned life insurance policies | 0 | 0 | |
Proceeds from sale of facility | 0 | ||
Other | 0 | 0 | 0 |
Net cash provided (used) by investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Net proceeds from short-term borrowings | 0 | ||
Payments on long-term debt, including costs of debt reacquisition | 0 | 0 | 0 |
Proceeds from issuing long-term debt | 0 | ||
Payments for debt issue costs | 0 | 0 | 0 |
Change in book overdrafts | -4,001 | ||
Proceeds from issuing shares under employee plans | 0 | 0 | 0 |
Excess tax benefit from share-based employee awards | 0 | 0 | 0 |
Payments for common shares repurchased | 0 | 0 | 0 |
Cash dividends paid to shareholders | 0 | 0 | 0 |
Advances from (to) consolidated subsidiaries | 0 | 0 | 0 |
Net cash provided (used) by financing activities | 0 | 0 | -4,001 |
Effect of exchange rate change on cash | 0 | 0 | 0 |
Net change in cash and cash equivalents | -226 | 898 | -4,001 |
Cash and cash equivalents, beginning of year | -3,103 | -4,001 | 0 |
Cash and cash equivalents, end of year | ($3,329) | ($3,103) | ($4,001) |
Subsequent_events_Details
Subsequent events (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2011 | Mar. 31, 2015 | Mar. 16, 2015 |
Subsequent events [Line Items] | ||||||||||||||
Total revenue | $448,513 | $413,204 | $405,410 | $406,955 | $417,758 | $398,080 | $381,433 | $387,553 | $1,674,082 | $1,584,824 | $1,514,917 | |||
Company-owned distributors [Member] | ||||||||||||||
Subsequent events [Line Items] | ||||||||||||||
Total revenue | 22,745 | 13,982 | 10,251 | |||||||||||
Senior notes due 2019 [Member] | ||||||||||||||
Subsequent events [Line Items] | ||||||||||||||
Stated interest rate | 7.00% | |||||||||||||
Debt maturity date | 15-Mar-19 | |||||||||||||
Subsequent event [Member] | Senior notes due 2019 [Member] | ||||||||||||||
Subsequent events [Line Items] | ||||||||||||||
Redeemable long-term debt | $200,000 | |||||||||||||
Stated interest rate | 7.00% | |||||||||||||
Debt maturity date | 15-Mar-19 |
SUMMARIZED_QUARTERLY_FINANCIAL2
SUMMARIZED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenue | $448,513 | $413,204 | $405,410 | $406,955 | $417,758 | $398,080 | $381,433 | $387,553 | $1,674,082 | $1,584,824 | $1,514,917 |
Gross profit | 283,204 | 263,054 | 259,519 | 262,027 | 265,709 | 255,857 | 247,886 | 254,256 | 1,067,804 | 1,023,708 | 990,542 |
Net income | 57,963 | 44,431 | 50,076 | 47,324 | 45,722 | 46,903 | 48,152 | 45,875 | 199,794 | 186,652 | 170,492 |
Earnings per share: | |||||||||||
Earnings per share - basic | $1.16 | $0.89 | $1 | $0.94 | $0.90 | $0.93 | $0.95 | $0.90 | $3.99 | $3.68 | $3.33 |
Earnings per share - diluted | $1.16 | $0.88 | $0.99 | $0.93 | $0.90 | $0.92 | $0.94 | $0.89 | $3.96 | $3.65 | $3.32 |
Cash dividends per share | $0.30 | $0.30 | $0.30 | $0.25 | $0.25 | $0.25 | $0.25 | $0.25 | $1.15 | $1 | $1 |
Items affecting comparability of results | |||||||||||
Net pre-tax restructuring charges | 4,355 | 3,532 | 5,327 | 3,079 | 1,051 | 1,449 | 9,655 | 10,906 | 10,734 | ||
Reduction in income tax expense for discrete items | 2,282 | ||||||||||
Asset impairment charge | $6,468 | $5,000 | $6,468 | $5,000 | $0 |