10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2012

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________________ to ________________________

Commission file number: 1-7945

DELUXE CORPORATION

(Exact name of registrant as specified in its charter)

Minnesota (State or other jurisdiction of incorporation or organization)	41-0216800 (I.R.S. Employer Identification No.)
3680 Victoria St. N., Shoreview, Minnesota (Address of principal executive offices)	55126-2966 (Zip Code)

(651) 483-7111

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þYes   o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files).

þYes   o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ	Accelerated filer o
Non-accelerated filer o	Smaller reporting company o

(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

o Yes þ  No

The number of shares outstanding of registrant’s common stock, par value $1.00 per share, at July 24, 2012 was 50,555,181.

1

PART I − FINANCIAL INFORMATION

Item 1. Financial Statements.

DELUXE CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands, except share par value)

(Unaudited)

	June 30, 2012			December 31, 2011
ASSETS
Current Assets:
Cash and cash equivalents	$	45,131		$	28,687
Trade accounts receivable (net of allowances for uncollectible accounts of $3,601 and $4,007, respectively)	69,283			69,023
Inventories and supplies	23,813			22,043
Deferred income taxes	6,809			7,216
Funds held for customers	42,000			44,394
Other current assets	34,047			21,212
Total current assets	221,083			192,575
Long-Term Investments (including $2,035 and $2,165 of investments at fair value, respectively)	46,126			45,147
Property, Plant And Equipment (net of accumulated depreciation of $358,941 and $352,842, respectively)	108,223			113,411
Assets Held For Sale	—			2,741
Intangibles (net of accumulated amortization of $451,472 and $433,335, respectively)	161,491			157,339
Goodwill	789,742			776,998
Other Non-Current Assets	95,529			100,598
Total Assets	$	1,422,194		$	1,388,809
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	60,705		$	64,694
Accrued liabilities	142,984			150,098
Long-term debt due within one year	85,296			85,575
Total current liabilities	288,985			300,367
Long-Term Debt	656,847			656,131
Deferred Income Taxes	54,265			49,807
Other Non-Current Liabilities	63,180			79,815
Commitments And Contingencies (Notes 10 and 11)
Shareholders’ Equity:
Common shares $1 par value (authorized: 500,000 shares; outstanding: 2012 – 50,541; 2011 – 50,826)	50,541			50,826
Additional paid-in capital	49,981			55,838
Retained earnings	316,344			255,426
Accumulated other comprehensive loss	(57,949		)	(59,401		)
Total shareholders’ equity	358,917			302,689
Total Liabilities And Shareholders’ Equity	$	1,422,194		$	1,388,809

See Condensed Notes to Unaudited Consolidated Financial Statements

2

DELUXE CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands, except per share amounts)

(Unaudited)

	Quarter Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Revenue	$	371,014		$	346,274		$	748,996		$	696,026
Cost of goods sold, including net restructuring charges	(127,594		)	(120,687		)	(255,082		)	(240,849		)
Gross Profit	243,420			225,587			493,914			455,177
Selling, general and administrative expense	(167,718		)	(157,526		)	(339,549		)	(318,344		)
Net restructuring charges	(1,998		)	(4,075		)	(2,636		)	(5,502		)
Net (loss) gain on sale of facility	(128		)	—			(128		)	110
Operating Income	73,576			63,986			151,601			131,441
Loss on early debt extinguishment	—			—			—			(6,995		)
Interest expense	(11,356		)	(12,054		)	(23,053		)	(24,092		)
Other income (expense)	317			(69		)	356			86
Income Before Income Taxes	62,537			51,863			128,904			100,440
Income tax provision	(20,275		)	(16,390		)	(42,563		)	(32,411		)
Net Income	$	42,262		$	35,473		$	86,341		$	68,029
Comprehensive Income	$	42,183		$	36,365		$	87,793		$	70,480
Basic Earnings Per Share	$	0.83		$	0.69		$	1.69		$	1.32
Diluted Earnings Per Share	0.82			0.68			1.68			1.31
Cash Dividends Per Share	$	0.25		$	0.25		$	0.50		$	0.50

See Condensed Notes to Unaudited Consolidated Financial Statements

3

DELUXE CORPORATION

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY

(in thousands)

(Unaudited)

	Common shares par value(1)			Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Total
Balance, December 31, 2011	$	50,826		$	55,838		$	255,426		$	(59,401	)	$	302,689
Net income	—			—			86,341			—			86,341
Cash dividends	—			—			(25,423		)	—			(25,423		)
Common shares issued	249			3,015			—			—			3,264
Tax impact of share-based awards	—			170			—			—			170
Common shares repurchased	(509		)	(11,490		)	—			—			(11,999		)
Other common shares retired	(25		)	(595		)	—			—			(620		)
Fair value of share-based compensation	—			3,043			—			—			3,043
Other comprehensive income (Note 12)	—			—			—			1,452			1,452
Balance, June 30, 2012	$	50,541		$	49,981		$	316,344		$	(57,949	)	$	358,917

⁽¹⁾ As the par value of our common shares is $1.00 per share, the number of shares associated with the transactions presented here is equivalent to the related par value. See Note 12 for share information.

See Condensed Notes to Unaudited Consolidated Financial Statements

4

DELUXE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

		Six Months Ended June 30,
		2012			2011
Cash Flows From Operating Activities:
Net income		$	86,341		$	68,029
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		10,130			10,584
Amortization of intangibles		23,304			28,099
Amortization of contract acquisition costs		8,546			8,665
Deferred income taxes		4,110			2,345
Employee share-based compensation expense		3,404			3,127
Loss on early debt extinguishment		—			6,995
Other non-cash items, net		4,885			6,389
Changes in assets and liabilities, net of effect of acquisitions:
Trade accounts receivable		(28		)	(304		)
Inventories and supplies		(2,580		)	(144		)
Other current assets		(6,257		)	(4,565		)
Non-current assets		1,295			3,116
Accounts payable		(2,948		)	1,566
Contract acquisition payments		(10,516		)	(5,615		)
Other accrued and non-current liabilities		(19,777		)	(24,105		)
Net cash provided by operating activities		99,909			104,182
Cash Flows From Investing Activities:
Purchases of capital assets		(17,334		)	(19,296		)
Payments for acquisitions, net of cash acquired		(28,459		)	(36,754		)
Loans to distributors		(3,150		)	—
Other		3,211			740
Net cash used by investing activities		(45,732		)	(55,310		)
Cash Flows From Financing Activities:
Net proceeds from short-term debt		—			6,000
Payments on long-term debt, including costs of debt reacquisition		—			(215,030		)
Proceeds from issuing long-term debt		—			200,000
Payments for debt issue costs		(1,163		)	(3,429		)
Change in book overdrafts		(2,652		)	(905		)
Proceeds from issuing shares under employee plans		2,873			6,514
Excess tax benefit from share-based employee awards		443			1,313
Payments for common shares repurchased		(11,999		)	(17,986		)
Cash dividends paid to shareholders		(25,423		)	(25,663		)
Net cash used by financing activities		(37,921		)	(49,186		)
Effect Of Exchange Rate Change On Cash		188			557
Net Change In Cash And Cash Equivalents		16,444			243
Cash And Cash Equivalents:	Beginning Of Period	28,687			17,383
	End Of Period	$	45,131		$	17,626

See Condensed Notes to Unaudited Consolidated Financial Statements

5

DELUXE CORPORATION

CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(dollars and shares in thousands, except per share amounts)

Note 1: Consolidated financial statements

The consolidated balance sheet as of June 30, 2012, the consolidated statements of comprehensive income for the quarters and six months ended June 30, 2012 and 2011, the consolidated statement of shareholders' equity for the six months ended June 30, 2012, and the consolidated statements of cash flows for the six months ended June 30, 2012 and 2011 are unaudited. The consolidated balance sheet as of December 31, 2011 was derived from audited consolidated financial statements, but does not include all disclosures required by generally accepted accounting principles (GAAP) in the United States of America. In the opinion of management, all adjustments necessary for a fair statement of the consolidated financial statements are included. Adjustments consist only of normal recurring items, except for any discussed in the notes below. Interim results are not necessarily indicative of results for a full year. The consolidated financial statements and notes are presented in accordance with instructions for Form 10-Q, and do not contain certain information included in our annual consolidated financial statements and notes. The consolidated financial statements and notes appearing in this report should be read in conjunction with the consolidated audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2011 (the “2011 Form 10-K”).

Note 2: New accounting pronouncements

On January 1, 2012, we adopted Accounting Standards Update (ASU) No. 2011-05, Presentation of ComprehensiveIncome. This standard eliminates the option to report other comprehensive income and its components in the statement of shareholders' equity. Also effective January 1, 2012, we adopted ASU No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. This standard temporarily defers a provision included in ASU No. 2011-05 which requires that reclassification adjustments from other comprehensive income to net income be presented by income statement line item. Our presentation of comprehensive income in this quarterly report on Form 10-Q complies with these accounting standards.

On January 1, 2012, we adopted ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S GAAP and IFRSs. The new guidance changes some fair value measurement principles and disclosure requirements. The changes in fair value measurement principles relate primarily to financial assets and did not affect the fair value measurements presented in this report on Form 10-Q. The fair value disclosures required by the new standard are presented in Note 7: Fair value measurements.

Note 3: Supplemental balance sheet information

Inventories and supplies – Inventories and supplies were comprised of the following:

	June 30, 2012		December 31, 2011
Raw materials	$	5,521	$	5,566
Semi-finished goods	8,653		8,273
Finished goods	6,579		5,301
Supplies, primarily production	3,060		2,903
Inventories and supplies	$	23,813	$	22,043

6

Available-for-sale securities – Available-for-sale securities included within cash and cash equivalents, funds held for customers and other current assets were comprised of the following:

	June 30, 2012
	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Money market securities (cash equivalents)	$	21,180	$	—	$	—	$	21,180
Canadian and provincial government securities (funds held for customers)(1)	5,277		228		—		5,505
Money market securities (other current assets)	2,024		—		—		2,024
Total available-for-sale securities	$	28,481	$	228	$	—	$	28,709

⁽¹⁾ Funds held for customers, as reported on the consolidated balance sheet as of June 30, 2012, also included cash of $36,495.

	December 31, 2011
	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Money market securities	$	3	$	—	$	—	$	3
Canadian and provincial government securities	5,172		243		—		5,415
Available-for-sale securities (funds held for customers)(1)	5,175		243		—		5,418
Money market securities (other current assets)	2,001		—		—		2,001
Total available-for-sale securities	$	7,176	$	243	$	—	$	7,419

⁽¹⁾ Funds held for customers, as reported on the consolidated balance sheet as of December 31, 2011, also included cash of $38,976.

Expected maturities of available-for-sale securities as of June 30, 2012 were as follows:

	Fair value
Due in one year or less	$	23,280
Due in two to five years	1,905
Due in six to ten years	3,524
Total available-for-sale securities	$	28,709

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

Assets held for sale – Assets held for sale as of December 31, 2011 consisted of our facility located in Thorofare, New Jersey, which was closed in April 2009. This facility was sold during the quarter ended June 30, 2012 for net cash proceeds of $2,613, realizing a net pre-tax loss of $128.

7

Intangibles – Intangibles were comprised of the following:

	June 30, 2012							December 31, 2011
	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	427,030		(361,214		)	65,816		410,905		(345,145		)	65,760
Customer lists/relationships	58,872		(25,873		)	32,999		52,542		(26,059		)	26,483
Distributor contracts	30,900		(29,098		)	1,802		30,900		(28,198		)	2,702
Trade names	68,561		(28,017		)	40,544		67,661		(25,958		)	41,703
Other	8,500		(7,270		)	1,230		9,566		(7,975		)	1,591
Amortizable intangibles	593,863		(451,472		)	142,391		571,574		(433,335		)	138,239
Intangibles	$	612,963	$	(451,472	)	$	161,491	$	590,674	$	(433,335	)	$	157,339

Total amortization of intangibles was $11,315 for the quarter ended June 30, 2012 and $13,515 for the quarter ended June 30, 2011. Amortization of intangibles was $23,304 for the six months ended June 30, 2012 and $28,099 for the six months ended June 30, 2011. Based on the intangibles in service as of June 30, 2012, estimated future amortization expense is as follows:

	Estimated amortization expense
Remainder of 2012	$	21,415
2013	34,218
2014	22,156
2015	10,906
2016	7,728

Goodwill – Changes in goodwill during the six months ended June 30, 2012 were as follows:

	Small Business Services			Financial Services		Direct Checks		Total
Balance, December 31, 2011:
Goodwill, gross	$	621,314		$	27,178	$	148,506	$	796,998
Accumulated impairment charges	(20,000		)	—		—		(20,000		)
Goodwill, net of accumulated impairment charges	601,314			27,178		148,506		776,998
Acquisition of OrangeSoda, Inc. (see Note 5)	12,735			—		—		12,735
Currency translation adjustment	9			—		—		9
Balance, June 30, 2012:
Goodwill, gross	634,058			27,178		148,506		809,742
Accumulated impairment charges	(20,000		)	—		—		(20,000		)
Goodwill, net of accumulated impairment charges	$	614,058		$	27,178	$	148,506	$	789,742

8

Other non-current assets – Other non-current assets were comprised of the following:

	June 30, 2012		December 31, 2011
Contract acquisition costs	$	48,906	$	55,076
Loans and notes receivable from distributors	14,314		11,148
Deferred advertising costs	14,043		15,599
Other	18,266		18,775
Other non-current assets	$	95,529	$	100,598

Changes in contract acquisition costs during the six months ended June 30, 2012 and 2011 were as follows:

	Six Months Ended June 30,
	2012			2011
Balance, beginning of year	$	55,076		$	57,476
Additions(1)	2,668			1,770
Amortization	(8,546		)	(8,665		)
Other	(292		)	(170		)
Balance, end of period	$	48,906		$	50,411

⁽¹⁾ Contract acquisition costs are accrued upon contract execution. Cash payments made for contract acquisition costs were $10,516 for the six months ended June 30, 2012 and $5,615 for the six months ended June 30, 2011.

Accrued liabilities – Accrued liabilities were comprised of the following:

	June 30, 2012		December 31, 2011
Funds held for customers	$	41,284	$	43,829
Employee profit sharing/cash bonus	22,297		23,783
Customer rebates	20,122		20,969
Wages, including vacation	12,657		4,995
Interest	8,737		8,760
Contract acquisition costs due within one year	5,152		13,070
Restructuring due within one year (see Note 8)	3,766		5,946
Other	28,969		28,746
Accrued liabilities	$	142,984	$	150,098

Other non-current liabilities – Other non-current liabilities were comprised of the following:

	June 30, 2012		December 31, 2011
Pension and postretirement benefit plans	$	36,458	$	48,859
Contract acquisition costs	7,305		7,455
Unrecognized tax benefits, including interest and penalties	6,750		7,570
Other	12,667		15,931
Other non-current liabilities	$	63,180	$	79,815

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Note 4: 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. 

	Quarter Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Earnings per share – basic:
Net income	$	42,262		$	35,473		$	86,341		$	68,029
Income allocated to participating securities	(287		)	(211		)	(575		)	(325		)
Income available to common shareholders	$	41,975		$	35,262		$	85,766		$	67,704
Weighted-average shares outstanding	50,737			51,175			50,796			51,221
Earnings per share – basic	$	0.83		$	0.69		$	1.69		$	1.32
Earnings per share – diluted:
Net income	$	42,262		$	35,473		$	86,341		$	68,029
Income allocated to participating securities	(286		)	(98		)	(573		)	(160		)
Re-measurement of share-based awards classified as liabilities	23			(23		)	35			13
Income available to common shareholders	$	41,999		$	35,352		$	85,803		$	67,882
Weighted-average shares outstanding	50,737			51,175			50,796			51,221
Dilutive impact of potential common shares	249			513			273			489
Weighted-average shares and potential common shares outstanding	50,986			51,688			51,069			51,710
Earnings per share – diluted	$	0.82		$	0.68		$	1.68		$	1.31
Antidilutive options excluded from calculation	2,010			1,449			2,010			1,449

Note 5: Acquisitions

In May 2012, we acquired all of the outstanding stock of OrangeSoda, Inc., a provider of internet marketing services specializing in search, mobile and social media campaign strategies for small businesses, in a cash transaction for $26,634, net of cash acquired. We funded the acquisition with cash on hand. The preliminary allocation of the purchase price based upon the estimated fair values of the assets acquired and liabilities assumed resulted in goodwill of $12,735. We expect to finalize the allocation of the purchase price during the third quarter of 2012 when the working capital adjustment required by the purchase agreement and our valuation of deferred income taxes is finalized. This acquisition resulted in the recognition of goodwill as we expect to accelerate revenue growth in marketing solutions and other services by combining our capabilities with OrangeSoda's solutions, tools, platform and market presence. Transaction costs related to this acquisition were expensed as incurred and were not significant to our consolidated statements of comprehensive income for the quarter and six months ended June 30, 2012. 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 a weighted-average useful life of 9 years, internal-use software valued at $3,300 with a useful life of 5 years, and a trade name valued at $900 with a useful life of 5 years. Further information regarding the calculation of the estimated fair values of these assets can be found in Note 7.

During the six months ended June 30, 2012, we acquired the operations of small business distributors for aggregate cash payments of $1,825. The assets acquired consisted primarily of customer lists and inventory, a portion of which was sold to Safeguard® distributors during the six months ended June 30, 2012. We entered into notes receivable upon the sale of the assets, and we recognized no gains or losses on these dispositions.

10

Note 6: Derivative financial instruments

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 comprehensive income. When the change in the fair value of the interest rate swaps and the hedged debt are not equal (i.e., hedge ineffectiveness), the difference in the changes in fair value affects the reported amount of interest expense in our consolidated statements of comprehensive income. Information regarding hedge ineffectiveness in each period is presented in Note 7. The fair value of the interest rate swaps related to our debt due in 2012 is included in other current assets on the consolidated balance sheets. The fair value of the interest rate swaps related to our debt due in 2014 is included in other non-current assets on the consolidated balance sheets.

Information regarding interest rate swaps as of June 30, 2012 was as follows:

	Notional amount		Fair value of interest rate swaps		Increase in debt due to fair value adjustment
Fair value hedge related to long-term debt due in 2012	$	84,847	$	913	$	474
Fair value hedge related to long-term debt due in 2014	198,000		4,190		3,475
Total fair value hedges	$	282,847	$	5,103	$	3,949

Information regarding interest rate swaps as of December 31, 2011 was as follows:

	Notional amount		Fair value of interest rate swaps		Increase in debt due to fair value adjustment
Fair value hedge related to long-term debt due in 2012	$	84,847	$	1,309	$	780
Fair value hedge related to long-term debt due in 2014	198,000		3,230		2,788
Total fair value hedges	$	282,847	$	4,539	$	3,568

During the first quarter of 2011, we retired a portion of our long-term debt due in 2012 (see Note 10). In conjunction with this debt retirement, we settled a portion of the interest rate swaps and received cash payments of $2,548. Interest rate swaps remaining after the settlement were redesignated as fair value hedges during March 2011. In conjunction with the debt retirement, we recognized $3,094 of the fair value adjustment to the hedged debt, decreasing the loss on early debt extinguishment recognized during the first quarter of 2011. The $1,355 remaining fair value adjustment to the hedged debt as of the date hedge accounting was discontinued is being recorded as a decrease to interest expense over the term of the remaining debt.

Note 7: Fair value measurements

2012 acquisitions – For all business combinations, 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 the quarter ended June 30, 2012 (see Note 5) were comprised primarily of customer relationships, a trade name and internal-use software associated with the acquisition of OrangeSoda, Inc. 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, which is being amortized over a weighted-average useful life of 9 years using an accelerated method. 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, which is being amortized on the straight-line basis over 5 years. The fair value of the trade name was estimated using a relief from royalty method, which calculates the cost savings associated with owning rather than licensing the trade name. An assumed royalty rate was applied to forecasted revenue and the resulting cash flows

11

were discounted. The assumed royalty rate was based on market data and an analysis of the expected margins for the acquired operations. The calculated fair value of the trade name was $900, which is being amortized on the straight-line basis over 5 years.

Recurring fair value measurements – Cash and cash equivalents as of June 30, 2012 include available-for-sale marketable securities (see Note 3). These securities consist of investments in various money market funds which are traded in active markets. As such, the fair value of these investments is determined based on quoted market prices. 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 quarters or six months ended June 30, 2012.

Funds held for customers include available-for-sale marketable securities (see Note 3). These securities consist primarily of a mutual fund investment which invests in Canadian and provincial government securities. The 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. Unrealized gains and losses, net of tax, are included in accumulated other comprehensive loss on the consolidated balance sheets. Realized gains and losses are included in revenue on the consolidated statements of comprehensive income and were not significant for the quarters or six months ended June 30, 2012 and 2011. The cost of securities sold is determined using the average cost method.

Other current assets include available-for-sale marketable securities (see Note 3). These securities consist 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 quarters or six months ended June 30, 2012 and 2011.

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 on the consolidated balance sheets. Long-term investments also include the cash surrender values of company-owned life insurance policies. Realized and unrealized gains and losses, as well as dividends earned by the mutual fund investment, are included in selling, general and administrative (SG&A) expense on the consolidated statements of comprehensive 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 on the consolidated statements of comprehensive 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 statements of comprehensive income. The cost of securities sold is determined using the average cost method. Realized gains recognized during the quarters and six months ended June 30, 2012 and 2011 were not significant. We recognized a net unrealized loss on the investment in mutual funds of $105 during the quarter ended June 30, 2012 and a net unrealized gain of $63 during the quarter ended June 30, 2011. We recognized a net unrealized gain of $6 during the six months ended June 30, 2012 and $243 during the six months ended June 30, 2011.

The fair value of interest rate swaps (see 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. 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 comprehensive income and were as follows:

	Quarter Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Gain (loss) from derivatives	$	322		$	771		$	563		$	(274	)
Loss from change in fair value of hedged debt	(288		)	(928		)	(769		)	(323		)
Net decrease (increase) in interest expense	$	34		$	(157	)	$	(206	)	$	(597	)

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Information regarding recurring fair value measurements completed during each period was as follows:

			Fair value measurements using
	Fair value as of June 30, 2012		Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
			(Level 1)		(Level 2)		(Level 3)
Marketable securities (cash equivalents)	$	21,180	$	21,180	$	—	$	—
Marketable securities (funds held for customers)	5,505		—		5,505		$	—
Marketable securities (other current assets)	2,024		—		2,024		—
Long-term investment in mutual funds	2,035		2,035		—		—
Derivative assets	5,103		—		5,103		—

			Fair value measurements using
	Fair value as of December 31, 2011		Quoted prices in active markets for identical assets		Significant other observableinputs		Significant unobservable inputs
			(Level 1)		(Level 2)		(Level 3)
Marketable securities (funds held for customers)	$	5,418	$	—	$	5,418	$	—
Marketable securities (other current assets)	2,001		—		2,001		—
Long-term investment in mutual funds	2,165		2,165		—		—
Derivative assets	4,539		—		4,539		—

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 and cash included within funds held for customers – 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, during both 2012 and 2011, we 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 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 is based on quoted prices for identical liabilities when traded as assets in an active market. As of December 31, 2011, our long-term debt issued in March 2011 was not traded in an active market. As such, its fair value as of December 31, 2011 was determined by means of a pricing model utilizing readily observable market interest rates and data from trades executed by institutional investors. 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.

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The estimated fair values of these financial instruments were as follows:

					Fair value measurements using
	June 30, 2012				Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
	Carrying value		Fair value		(Level 1)		(Level 2)		(Level 3)
Cash	$	23,951	$	23,951	$	23,951	$	—	$	—
Cash (funds held for customers)	36,495		36,495		36,495		—		—
Loans and notes receivable from distributors	15,563		14,055		—		—		14,055
Long-term debt, including portion due within one year	742,143		764,969		764,969		—		—

					Fair value measurements using
	December 31, 2011				Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
	Carrying value		Fair value		(Level 1)		(Level 2)		(Level 3)
Cash	$	28,687	$	28,687	$	28,687	$	—	$	—
Cash (funds held for customers)	38,976		38,976		38,976		—		—
Loans and notes receivable from distributors	11,940		10,616		—		—		10,616
Long-term debt, including portion due within one year	741,706		738,157		544,657		193,500		—

Note 8: Restructuring charges

Net restructuring charges for each period consisted of the following components:

	Quarter Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Severance accruals	$	1,044		$	2,027		$	3,036		$	2,823
Severance reversals	(443		)	(171		)	(908		)	(909		)
Net restructuring accruals	601			1,856			2,128			1,914
Other costs	1,320			2,748			1,670			4,164
Net restructuring charges	$	1,921		$	4,604		$	3,798		$	6,078

The net restructuring charges are reflected in the consolidated statements of comprehensive income as follows:

	Quarter Ended June 30,					Six Months Ended June 30,
	2012			2011		2012		2011
Cost of goods sold	$	(77	)	$	529	$	1,162	$	576
Operating expenses	1,998			4,075		2,636		5,502
Net restructuring charges	$	1,921		$	4,604	$	3,798	$	6,078

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2012 restructuring charges – During the quarter ended June 30, 2012, the net restructuring accruals included severance charges related to employee reductions across functional areas as we continue to reduce costs, including the planned closing of a printing facility by early 2013 and the planned closing of two customer call centers during the third quarter of 2012. Restructuring charges for the six months ended June 30, 2012 also included severance charges related to the planned closing of a printing facility in the fourth quarter of 2012. The restructuring accruals included severance benefits for approximately 50 employees for the quarter ended June 30, 2012 and severance benefits for approximately 195 employees for the six months ended June 30, 2012. 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 employee and equipment moves, training and travel related to our restructuring activities.

2011 restructuring charges – During the quarter and six months ended June 30, 2011, the net restructuring accruals included severance charges related to employee reductions in various functional areas as we continued to reduce costs. The restructuring accruals included severance benefits for approximately 70 employees for the quarter ended June 30, 2011 and severance benefits for approximately 90 employees for the six months ended June 30, 2011. These charges were reduced by the reversal of restructuring accruals, recorded primarily in 2010, as fewer employees received severance benefits than originally estimated. Other restructuring costs, which were expensed as incurred, included items such as employee and equipment moves, training and travel related to our restructuring activities.

Restructuring accruals of $3,766 as of June 30, 2012 are reflected in the consolidated balance sheet as accrued liabilities. Restructuring accruals of $6,032 as of December 31, 2011 are reflected in the consolidated balance sheet as accrued liabilities of $5,946 and other non-current liabilities of $86. The majority of the employee reductions are expected to be completed by the end of 2012 , and we expect most of the related severance payments to be paid by mid-2013, utilizing cash from operations. The remaining payments due under operating lease obligations will be paid through May 2013. As of June 30, 2012, approximately 225 employees had not yet started to receive severance benefits. Further information regarding our restructuring accruals can be found under the caption “Note 8: Restructuring charges” in the Notes to Consolidated Financial Statements appearing in the 2011 Form 10-K.

As of June 30, 2012, accruals for our restructuring initiatives, summarized by year, were as follows:

	2009 initiatives			2010 initiatives			2011 initiatives			2012  initiatives			Total
Balance, December 31, 2011	$	184		$	781		$	5,067		$	—		$	6,032
Restructuring charges	11			9			262			2,754			3,036
Restructuring reversals	—			(189		)	(672		)	(47		)	(908		)
Payments	(157		)	(373		)	(3,082		)	(782		)	(4,394		)
Balance, June 30, 2012	$	38		$	228		$	1,575		$	1,925		$	3,766
Cumulative amounts:
Restructuring charges	$	11,035		$	9,724		$	9,056		$	2,754		$	32,569
Restructuring reversals	(1,670		)	(1,511		)	(1,283		)	(47		)	(4,511		)
Payments	(9,327		)	(7,985		)	(6,198		)	(782		)	(24,292		)
Balance, June 30, 2012	$	38		$	228		$	1,575		$	1,925		$	3,766

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As of June 30, 2012, the components of our restructuring accruals, by segment, were as follows:

	Employee severance benefits												Operating lease obligations
	Small Business Services			Financial Services			Direct Checks			Corporate			Small Business Services			Direct Checks			Total
Balance, December 31, 2011	$	887		$	1,397		$	744		$	2,647		$	69		$	288		$	6,032
Restructuring charges	891			166			162			1,817			—			—			3,036
Restructuring reversals	(72		)	(124		)	(75		)	(637		)	—			—			(908		)
Inter-segment transfer	184			(184		)	(40		)	40			—			—			—
Payments	(1,466		)	(979		)	(7		)	(1,774		)	(66		)	(102		)	(4,394		)
Balance, June 30, 2012	$	424		$	276		$	784		$	2,093		$	3		$	186		$	3,766
Cumulative amounts(1):
Restructuring charges	$	9,888		$	6,000		$	3,445		$	12,363		$	364		$	509		$	32,569
Restructuring reversals	(1,621		)	(839		)	(267		)	(1,784		)	—			—			(4,511		)
Inter-segment transfer	309			50			(38		)	(321		)	—			—			—
Payments	(8,152		)	(4,935		)	(2,356		)	(8,165		)	(361		)	(323		)	(24,292		)
Balance, June 30, 2012	$	424		$	276		$	784		$	2,093		$	3		$	186		$	3,766

⁽¹⁾ Includes accruals related to our cost reduction initiatives for 2009 through 2012.

Note 9: Pension and other postretirement benefits

We have historically provided certain health care benefits for a large number of retired U.S. employees. In addition to our retiree health care plan, we also have a supplemental executive retirement plan in the United States. Further information regarding our postretirement benefit plans can be found under the caption “Note 12: Pension and other postretirement benefits” in the Notes to Consolidated Financial Statements appearing in the 2011 Form 10-K.

Pension and postretirement benefit expense for the quarters ended June 30, 2012 and 2011 consisted of the following components:

	Postretirement benefit plan						Pension plan
	2012			2011			2012		2011
Interest cost	$	1,478		$	1,667		$	37	$	41
Expected return on plan assets	(1,950		)	(1,963		)	—		—
Amortization of prior service credit	(764		)	(936		)	—		—
Amortization of net actuarial losses	1,467			1,354			2		—
Net periodic benefit expense	$	231		$	122		$	39	$	41

Pension and postretirement benefit expense for the six months ended June 30, 2012 and 2011 consisted of the following components:

	Postretirement benefit plan						Pension plan
	2012			2011			2012		2011
Interest cost	$	2,956		$	3,334		$	74	$	82
Expected return on plan assets	(3,901		)	(3,926		)	—		—
Amortization of prior service credit	(1,528		)	(1,871		)	—		—
Amortization of net actuarial losses	2,935			2,708			4		—
Net periodic benefit expense	$	462		$	245		$	78	$	82

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Note 10: Debt

Debt outstanding was comprised of the following:

	June 30, 2012		December 31, 2011
5.125% senior, unsecured notes due October 1, 2014, net of discount(1)	$	256,847	$	256,131
7.375% senior notes due June 1, 2015	200,000		200,000
7.0% senior notes due March 15, 2019	200,000		200,000
Long-term portion of debt	656,847		656,131
5.0% senior, unsecured notes due December 15, 2012, net of discount(2)	85,296		85,575
Total debt	$	742,143	$	741,706

⁽¹⁾ Includes increase due to cumulative change in fair value of hedged debt of $3,475 as of June 30, 2012 and $2,788 as of December 31, 2011.

⁽²⁾ Includes increase due to cumulative change in fair value of hedged debt of $474 as of June 30, 2012 and $780 as of December 31, 2011.

Discounts from par value are being amortized ratably as increases 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. The notes due in 2019 and 2015 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.

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 Securities and Exchange Commission (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 14. At any time prior to March 15, 2014, 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 107% of the principal amount of the notes, together with accrued and unpaid interest. 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 $212,000 as of June 30, 2012, based on quoted prices for identical liabilities when traded as assets.

In May 2007, we issued $200,000 of 7.375% senior notes maturing on June 1, 2015. 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 June 29, 2007. Interest payments are due each June and December. The notes are guaranteed by the same subsidiaries which guarantee our notes due in 2019 and place a limitation on restricted payments, including share repurchases and increases in dividend levels. This limitation 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 14. Principal redemptions may be made at our election at any time at redemption prices ranging from 100% to 103.688% of the principal amount. If 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 $196,329. These proceeds were used as part of our repayment of unsecured notes which matured on October 1, 2007. The fair value of the notes issued in May 2007 was $211,000 as of June 30, 2012, based on quoted prices for identical liabilities when traded as assets.

In October 2004, we issued $275,000 of 5.125% senior, unsecured notes maturing 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 are 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. During the quarter ended March 31, 2011, we retired $10,000 of these notes, realizing a pre-tax loss of $185. As of June 30, 2012, the fair value of the $253,500 remaining notes outstanding was $256,035 based on quoted prices for identical liabilities when traded as assets. As discussed in Note 6, we have entered into interest rate swaps to hedge a portion of these notes. The fair value of long-term debt disclosed

17

here does not reflect the impact of these fair value hedges.

In December 2002, we issued $300,000 of 5.0% senior, unsecured notes maturing on December 15, 2012. These notes were issued under our shelf registration statement covering up to $300,000 in medium-term notes, thereby exhausting that registration statement. Interest payments are due each June and December. Principal redemptions may be made at our election prior to the stated maturity. Proceeds from the offering, net of offering costs, were $295,722. These proceeds were used for general corporate purposes, including funding share repurchases, capital asset purchases and working capital. During the quarter ended March 31, 2011, we retired $195,463 of these notes, realizing a pre-tax loss of $6,810. As of June 30, 2012, the fair value of the $84,847 remaining notes outstanding was $85,934, based on quoted prices for identical liabilities when traded as assets. As discussed in Note 6, we have entered into interest rate swaps to hedge these notes. The fair value of long-term debt disclosed here does not reflect the impact of these fair value hedges.

As of December 31, 2011, we had a $200,000 credit facility, which was scheduled to expire in March 2013. In February 2012, we modified the terms of this credit facility, extending its term to February 2017. Additionally, we lowered our commitment fee to a range of 0.20% to 0.45% 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.

Amounts outstanding under our credit facility were as follows:

	Six Months Ended June 30, 2012		Year Ended December 31, 2011
Daily average amount outstanding	$	—	$	21,655
Weighted-average interest rate	—		3.03		%

No amounts were outstanding under our credit facility as of June 30, 2012 and December 31, 2011. As of June 30, 2012, amounts were available for borrowing under our credit facility as follows:

	Total available
Credit facility commitment	$	200,000
Outstanding letters of credit	(8,535		)
Net available for borrowing as of June 30, 2012	$	191,465

Absent certain defined events of default under our debt instruments, and as long as our ratio of earnings before interest, taxes, depreciation and amortization (EBITDA) to interest expense, as defined, is in excess of two to one, our debt covenants do not restrict our ability to pay cash dividends at our current rate, although there are aggregate annual limits on the amount of dividends and share repurchases under the terms of our credit facility, as well as a cumulative limit on such payments through the term of the credit facility. If our ratio of EBITDA to interest expense falls below two to one, there would also be limitations on our ability to issue additional debt.

Note 11:  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.

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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 $8,913 as of June 30, 2012 and $8,730 as of December 31, 2011, primarily related to facilities which have been sold. These accruals are included in accrued liabilities and other long-term 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 comprehensive income for environmental matters was $546 for the six months ended June 30, 2012 and $99 for the six months ended June 30, 2011.

As of June 30, 2012, $6,175 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 $6,736 had been paid through June 30, 2012. This insurance policy does not cover properties acquired subsequent to 2002. However, costs included in our environmental accruals for such properties were not material as of June 30, 2012. We do not anticipate significant net cash outlays for environmental matters in 2012. 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 new 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 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 $4,863 as of June 30, 2012 and $5,141 as of December 31, 2011, is accounted for on a present value basis. The difference between the discounted and undiscounted workers' compensation liability was $25 as of June 30, 2012 and $20 as of December 31, 2011. 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 $4,288 as of June 30, 2012 and $3,848 as of December 31, 2011. The difference between the discounted and undiscounted medical and dental liability was $296 as of June 30, 2012 and December 31, 2011.

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.

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Note 12: Shareholders’ equity

Shares outstanding– Changes in common shares outstanding were as follows:

	Six Months Ended June 30, 2012
Balance, December 31, 2011	50,826
Issued	249
Repurchased	(509	)
Retired	(25	)
Balance, June 30, 2012	50,541

Share repurchases– 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 4,748 shares remained available for purchase under this authorization as of June 30, 2012. During the six months ended June 30, 2012, we repurchased 509 shares for $11,999.

Accumulated other comprehensive loss was comprised of the following:

	Pension and postretirement benefit plans, net of tax			Loss on derivatives, net of tax(1)			Net unrealized gain 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	)
Current period other comprehensive income (loss)	878			557			(11		)	28		1,452
Balance, June 30, 2012	$	(61,400	)	$	(2,374	)	$	167		$	5,658	$	(57,949	)

⁽¹⁾ Relates to interest rate locks executed in 2004 and 2002. See the caption "Note 6: Derivative financial instruments" in the Notes to Consolidated Financial Statements appearing in the 2011 Form 10-K.

Note 13: 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 mail and the internet, referrals from financial institutions and telecommunications clients, a network of distributors and dealers, and a direct sales force which focuses on major accounts. These efforts are supplemented by the account development efforts of an outbound telemarketing group. Financial Services' products and services are sold through multiple channels, including a direct sales force, to financial institution clients nationwide, including banks, credit unions and financial services companies. Direct Checks sells products and services directly to consumers using direct response marketing via mail and the internet. All three segments operate primarily in the United States. Small Business Services also has operations in Canada and portions of Europe. 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 47.2% of our Small Business Services segment's revenue in 2011.

Forms – Our Small Business Services segment provides printed forms to small businesses, including 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 produced by our Financial Services and Direct Checks segments include deposit tickets and check registers.

Accessories and other products – Small Business Services produces products designed to provide small business owners with the customized documents necessary to efficiently manage their business including envelopes, office supplies, stamps and labels, as well as retail packaging supplies. Our Financial Services and Direct Checks segments offer check book

20

covers and stamps.

Marketing solutions – All three of our segments offer products and services that help small businesses and financial institutions promote their businesses and acquire customers. Our Small Business Services segment offers services such as web design, hosting and other web services, logo design, search engine optimization and marketing, and digital printing services designed to fulfill the sales and marketing needs of small businesses, as well as products such as business cards, greeting cards, brochures and apparel. Financial Services offers various customer acquisition programs and marketing communications services, while Direct Checks provides package insert programs under which companies' marketing materials are included in our check packages.

Other services – All three of our segments provide fraud protection services. In addition, our Small Business Services segment offers payroll services, and Financial Services provides financial institution profitability, regulatory and compliance programs.

The accounting policies of the segments are the same as those described in the Notes to Consolidated Financial Statements included in the 2011 Form 10-K. 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.

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 quarters ended June 30, 2012 and 2011:

		Reportable Business Segments
		Small Business Services		Financial Services		Direct Checks		Corporate		Consolidated
Revenue from external customers:	2012	$	233,088	$	85,664	$	52,262	$	—	$	371,014
	2011	203,156		86,656		56,462		—		346,274
Operating income:	2012	38,241		19,981		15,354		—		73,576
	2011	34,329		13,214		16,443		—		63,986
Depreciation and amortization	2012	11,017		3,021		2,299		—		16,337
expense:	2011	11,398		3,412		4,130		—		18,940
Total assets:	2012	860,819		93,928		171,222		296,225		1,422,194
	2011	778,740		96,847		173,928		285,461		1,334,976
Capital asset purchases:	2012	—		—		—		8,338		8,338
	2011	—		—		—		10,874		10,874

21

The following is our segment information as of and for the six months ended June 30, 2012 and 2011:

		Reportable Business Segments
		Small Business Services		Financial Services		Direct Checks		Corporate		Consolidated
Revenue from external customers:	2012	$	462,684	$	176,257	$	110,055	$	—	$	748,996
	2011	403,159		174,670		118,197		—		696,026
Operating income:	2012	77,015		41,902		32,684		—		151,601
	2011	70,099		28,911		32,431		—		131,441
Depreciation and amortization	2012	22,404		6,275		4,755		—		33,434
expense:	2011	22,533		6,165		9,985		—		38,683
Total assets:	2012	860,819		93,928		171,222		296,225		1,422,194
	2011	778,740		96,847		173,928		285,461		1,334,976
Capital asset purchases:	2012	—		—		—		17,334		17,334
	2011	—		—		—		19,296		19,296

Note 14: Supplemental guarantor financial information

In March 2011, we issued $200,000 of long-term notes due March 15, 2019. The notes were issued under 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. These notes are jointly and severally guaranteed on a full and unconditional basis, subject to the release provisions described herein, by certain 100%-owned subsidiaries that guarantee any of our other indebtedness. These subsidiaries also guarantee our obligations under our credit facility and our long-term notes due in 2015. The subsidiary guarantees with respect to the notes due in March 2019 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 made certain immaterial corrections to the 2011 information presented for the guarantor subsidiaries and the non-guarantor subsidiaries. The corrections resulted in an increase in revenue of the guarantor subsidiaries, with a corresponding decrease in revenue of the non-guarantor subsidiaries. Corrections to related expense amounts and the resulting corrections to the condensed consolidating statement of cash flows were also recorded. In addition, the presentation of deferred income taxes as of December 31, 2011 for Deluxe Corporation was modified to conform to the current year presentation. These corrections had no impact on our consolidated financial statements.

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.

22

Deluxe Corporation

Condensed Consolidating Balance Sheet

	June 30, 2012
	Deluxe Corporation			Guarantor subsidiaries		Non-guarantor subsidiaries			Eliminations			Total
ASSETS
Current Assets:
Cash and cash equivalents	$	19,956		$	5,064	$	20,111		$	—		$	45,131
Trade accounts receivable, net	—			57,005		12,278			—			69,283
Inventories and supplies	—			21,589		2,224			—			23,813
Deferred income taxes	—			6,592		758			(541		)	6,809
Funds held for customers	—			—		42,000			—			42,000
Other current assets	14,755			14,104		5,188			—			34,047
Total current assets	34,711			104,354		82,559			(541		)	221,083
Long-Term Investments	37,063			9,063		—			—			46,126
Property, Plant And Equipment, net	—			91,290		16,933			—			108,223
Intangibles, net	—			159,681		1,810			—			161,491
Goodwill	—			787,779		1,963			—			789,742
Deferred Income Taxes	25,007			—		—			(25,007		)	—
Investments In Consolidated Subsidiaries	1,401,308			20,688		—			(1,421,996		)	—
Intercompany (Payable) Receivable	(380,835		)	420,384		(39,549		)	—			—
Other Non-Current Assets	12,177			67,789		15,563			—			95,529
Total Assets	$	1,129,431		$	1,661,028	$	79,279		$	(1,447,544	)	$	1,422,194
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	11,656		$	44,669	$	4,380		$	—		$	60,705
Accrued liabilities	12,841			81,947		48,196			—			142,984
Deferred income taxes	541			—		—			(541		)	—
Long-term debt due within one year	85,296			—		—			—			85,296
Total current liabilities	110,334			126,616		52,576			(541		)	288,985
Long-Term Debt	656,847			—		—			—			656,847
Deferred Income Taxes	—			76,085		3,187			(25,007		)	54,265
Other Non-Current Liabilities	3,333			57,019		2,828			—			63,180
Total Shareholders' Equity	358,917			1,401,308		20,688			(1,421,996		)	358,917
Total Liabilities And Shareholders' Equity	$	1,129,431		$	1,661,028	$	79,279		$	(1,447,544	)	$	1,422,194

23

Deluxe Corporation

Condensed Consolidating Balance Sheet

	December 31, 2011
	Deluxe Corporation			Guarantor subsidiaries		Non-guarantor subsidiaries			Eliminations			Total
ASSETS
Current Assets:
Cash and cash equivalents	$	3,047		$	1,522	$	24,118		$	—		$	28,687
Trade accounts receivable, net	—			57,463		11,560			—			69,023
Inventories and supplies	—			19,941		2,102			—			22,043
Deferred income taxes	1,035			5,430		751			—			7,216
Funds held for customers	—			—		44,394			—			44,394
Other current assets	5,851			10,469		4,892			—			21,212
Total current assets	9,933			94,825		87,817			—			192,575
Long-Term Investments	36,338			8,809		—			—			45,147
Property, Plant And Equipment, net	—			96,345		17,066			—			113,411
Assets Held For Sale	—			2,741		—			—			2,741
Intangibles, net	—			155,452		1,887			—			157,339
Goodwill	—			775,044		1,954			—			776,998
Deferred Income Taxes	27,471			—		—			(27,471		)	—
Investments In Consolidated Subsidiaries	1,307,149			15,478		—			(1,322,627		)	—
Intercompany (Payable) Receivable	(316,876		)	360,789		(43,913		)	—			—
Other Non-Current Assets	11,758			72,944		15,896			—			100,598
Total Assets	$	1,075,773		$	1,582,427	$	80,707		$	(1,350,098	)	$	1,388,809
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	13,401		$	44,908	$	6,385		$	—		$	64,694
Accrued liabilities	12,272			86,001		51,825			—			150,098
Long-term debt due within one year	85,575			—		—			—			85,575
Total current liabilities	111,248			130,909		58,210			—			300,367
Long-Term Debt	656,131			—		—			—			656,131
Deferred Income Taxes	—			74,133		3,145			(27,471		)	49,807
Other Non-Current Liabilities	5,705			70,236		3,874			—			79,815
Total Shareholders' Equity	302,689			1,307,149		15,478			(1,322,627		)	302,689
Total Liabilities And Shareholders' Equity	$	1,075,773		$	1,582,427	$	80,707		$	(1,350,098	)	$	1,388,809

24

Deluxe Corporation

Condensed Consolidating Statement of Comprehensive Income

	Quarter Ended June 30, 2012
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Eliminations			Total
Revenue	$	2,135		$	335,213		$	67,714		$	(34,048	)	$	371,014
Cost of goods sold	—			(118,791		)	(39,105		)	30,302			(127,594		)
Gross Profit	2,135			216,422			28,609			(3,746		)	243,420
Operating expenses	(998		)	(149,141		)	(23,451		)	3,746			(169,844		)
Operating Income	1,137			67,281			5,158			—			73,576
Interest expense	(11,339		)	(3,345		)	(407		)	3,735			(11,356		)
Other income	3,337			569			146			(3,735		)	317
(Loss) Income Before Income Taxes	(6,865		)	64,505			4,897			—			62,537
Income tax benefit (provision)	3,884			(21,218		)	(2,941		)	—			(20,275		)
(Loss) Income Before Equity In Earnings Of Consolidated Subsidiaries	(2,981		)	43,287			1,956			—			42,262
Equity in earnings of consolidated subsidiaries	45,243			1,956			—			(47,199		)	—
Net Income	$	42,262		$	45,243		$	1,956		$	(47,199	)	$	42,262
Comprehensive Income	$	42,183		$	44,879		$	1,185		$	(46,064	)	$	42,183

25

Deluxe Corporation

Condensed Consolidating Statement of Comprehensive Income

	Quarter Ended June 30, 2011
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Eliminations			Total
Revenue	$	2,128		$	312,009		$	67,281		$	(35,144	)	$	346,274
Cost of goods sold	—			(111,685		)	(39,835		)	30,833			(120,687		)
Gross Profit	2,128			200,324			27,446			(4,311		)	225,587
Operating expenses	(2,333		)	(141,411		)	(22,168		)	4,311			(161,601		)
Operating (Loss) Income	(205		)	58,913			5,278			—			63,986
Interest expense	(12,006		)	(3,079		)	(431		)	3,462			(12,054		)
Other income (expense)	3,057			128			208			(3,462		)	(69		)
(Loss) Income Before Income Taxes	(9,154		)	55,962			5,055			—			51,863
Income tax benefit (provision)	4,209			(20,094		)	(505		)	—			(16,390		)
(Loss) Income Before Equity In Earnings Of Consolidated Subsidiaries	(4,945		)	35,868			4,550			—			35,473
Equity in earnings of consolidated subsidiaries	40,418			4,550			—			(44,968		)	—
Net Income	$	35,473		$	40,418		$	4,550		$	(44,968	)	$	35,473
Comprehensive Income	$	36,365		$	41,029		$	4,917		$	(45,946	)	$	36,365

26

Deluxe Corporation

Condensed Consolidating Statement of Comprehensive Income

	Six Months Ended June 30, 2012
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Eliminations			Total
Revenue	$	4,233		$	677,015		$	139,742		$	(71,994	)	$	748,996
Cost of goods sold	—			(237,151		)	(82,638		)	64,707			(255,082		)
Gross Profit	4,233			439,864			57,104			(7,287		)	493,914
Operating expenses	(3,370		)	(298,846		)	(47,384		)	7,287			(342,313		)
Operating Income	863			141,018			9,720			—			151,601
Interest expense	(23,006		)	(5,607		)	(693		)	6,253			(23,053		)
Other income	5,700			315			594			(6,253		)	356
(Loss) Income Before Income Taxes	(16,443		)	135,726			9,621			—			128,904
Income tax benefit (provision)	8,642			(46,778		)	(4,427		)	—			(42,563		)
(Loss) Income Before Equity In Earnings Of Consolidated Subsidiaries	(7,801		)	88,948			5,194			—			86,341
Equity in earnings of consolidated subsidiaries	94,142			5,194			—			(99,336		)	—
Net Income	$	86,341		$	94,142		$	5,194		$	(99,336	)	$	86,341
Comprehensive Income	$	87,793		$	95,026		$	5,263		$	(100,289	)	$	87,793

27

Deluxe Corporation

Condensed Consolidating Statement of Comprehensive Income

	Six Months ended June 30, 2011
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Eliminations			Total
Revenue	$	4,256		$	626,710		$	137,622		$	(72,562	)	$	696,026
Cost of goods sold	—			(223,129		)	(81,371		)	63,651			(240,849		)
Gross Profit	4,256			403,581			56,251			(8,911		)	455,177
Operating expenses	(6,785		)	(281,183		)	(44,679		)	8,911			(323,736		)
Operating (Loss) Income	(2,529		)	122,398			11,572			—			131,441
Loss on early debt extinguishment	(6,995		)	—			—			—			(6,995		)
Interest expense	(24,011		)	(5,256		)	(725		)	5,900			(24,092		)
Other income	4,821			587			578			(5,900		)	86
(Loss) Income Before Income Taxes	(28,714		)	117,729			11,425			—			100,440
Income tax benefit (provision)	12,311			(42,273		)	(2,449		)	—			(32,411		)
(Loss) Income Before Equity In Earnings Of Consolidated Subsidiaries	(16,403		)	75,456			8,976			—			68,029
Equity in earnings of consolidated subsidiaries	84,432			8,976			—			(93,408		)	—
Net Income	$	68,029		$	84,432		$	8,976		$	(93,408	)	$	68,029
Comprehensive Income	$	70,480		$	85,842		$	9,901		$	(95,743	)	$	70,480

28

Deluxe Corporation

Condensed Consolidating Statement of Cash Flows

	Six Months Ended June 30, 2012
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Total
Net Cash (Used) Provided By Operating Activities	$	(13,374	)	$	110,323		$	2,960		$	99,909
Cash Flows From Investing Activities:
Purchases of capital assets	—			(16,192		)	(1,142		)	(17,334		)
Payments for acquisitions, net of cash acquired	—			(26,634		)	(1,825		)	(28,459		)
Loans to distributors	—			(3,090		)	(60		)	(3,150		)
Other	196			2,659			356			3,211
Net cash provided (used) by investing activities	196			(43,257		)	(2,671		)	(45,732		)
Cash Flows From Financing Activities:
Payments for debt issue costs	(1,163		)	—			—			(1,163		)
Change in book overdrafts	(2,492		)	(160		)	—			(2,652		)
Proceeds from issuing shares under employee plans	2,873			—			—			2,873
Excess tax benefit from share-based employee awards	443			—			—			443
Payments for common shares repurchased	(11,999		)	—			—			(11,999		)
Cash dividends paid to shareholders	(25,423		)	—			—			(25,423		)
Advances from (to) consolidated subsidiaries	67,848			(63,364		)	(4,484		)	—
Net cash provided (used) by financing activities	30,087			(63,524		)	(4,484		)	(37,921		)
Effect Of Exchange Rate Change On Cash	—			—			188			188
Net Change In Cash And Cash Equivalents	16,909			3,542			(4,007		)	16,444
Cash And Cash Equivalents: Beginning Of Period	3,047			1,522			24,118			28,687
End of Period	$	19,956		$	5,064		$	20,111		$	45,131

29

Deluxe Corporation

Condensed Consolidating Statement of Cash Flows

	Six Months ended June 30, 2011
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Total
Net Cash (Used) Provided By Operating Activities	$	(851	)	$	101,479		$	3,554		$	104,182
Cash Flows From Investing Activities:
Purchases of capital assets	—			(18,791		)	(505		)	(19,296		)
Payments for acquisitions, net of cash acquired	—			(35,000		)	(1,754		)	(36,754		)
Other	(170		)	683			227			740
Net cash used by investing activities	(170		)	(53,108		)	(2,032		)	(55,310		)
Cash Flows From Financing Activities:
Net proceeds from short-term debt	6,000			—			—			6,000
Payments on long-term debt, including costs of debt reacquisition	(215,030		)	—			—			(215,030		)
Proceeds from issuing long-term debt	200,000			—			—			200,000
Payments for debt issue costs	(3,429		)	—			—			(3,429		)
Change in book overdrafts	(765		)	(140		)	—			(905		)
Proceeds from issuing shares under employee plans	6,514			—			—			6,514
Excess tax benefit from share-based employee awards	1,313			—			—			1,313
Payments for common shares repurchased	(17,986		)	—			—			(17,986		)
Cash dividends paid to shareholders	(25,663		)	—			—			(25,663		)
Advances from (to) consolidated subsidiaries	47,455			(47,706		)	251			—
Net cash (used) provided by financing activities	(1,591		)	(47,846		)	251			(49,186		)
Effect Of Exchange Rate Change On Cash	—			—			557			557
Net Change In Cash And Cash Equivalents	(2,612		)	525			2,330			243
Cash And Cash Equivalents: Beginning Of Period	3,197			683			13,503			17,383
End of Period	$	585		$	1,208		$	15,833		$	17,626

30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

EXECUTIVE OVERVIEW

We employ a multi-channel strategy to provide a suite of life-cycle driven solutions to our customers. We use printed and electronic marketing, a direct sales force, financial institution and telecommunication client referrals, purchased search results from online search engines, and independent distributors and dealers to promote and sell a wide range of customized products and services. Over the past 24 months, our Small Business Services segment has provided products and services to over four million small business customers and our Direct Checks segment has provided products and services to more than eight million consumers. Through our Financial Services segment, we provide products and services to approximately 6,000 financial institution clients. We operate primarily in the United States. Small Business Services also has operations in Canada and portions of Europe. 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 47.2% of our Small Business Services segment's revenue in 2011.

Forms – Our Small Business Services segment is a leading provider of printed forms to small businesses, including 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 produced by our Financial Services and Direct Checks segments include deposit tickets and check registers.

Accessories and other products – Small Business Services produces products designed to provide small business owners with the customized documents necessary to efficiently manage their business including envelopes, office supplies, stamps and labels, as well as retail packaging supplies. Our Financial Services and Direct Checks segments offer checkbook covers and stamps.

Marketing solutions – All three of our segments offer products and services that help small businesses and financial institutions promote their businesses and acquire customers. Our Small Business Services segment offers services such as web design, hosting and other web services, logo design, search engine optimization and marketing, and digital printing services designed to fulfill the sales and marketing needs of small businesses, as well as products such as business cards, greeting cards, brochures and apparel. Financial Services offers various customer acquisition programs and marketing communications services, while Direct Checks provides package insert programs under which companies' marketing materials are included in our check packages.

Other services – All three of our segments provide fraud protection services. In addition, our Small Business Services segment offers payroll services, and Financial Services provides financial institution profitability, regulatory and compliance programs.

Throughout the past several years, we have focused on capitalizing on transformational opportunities available to us so that we are positioned to deliver increasing revenues and strong operating margins. These opportunities include new product and service offerings, brand awareness and positioning initiatives, investing in technology for our service offerings, enhancing our internet capabilities, improving customer segmentation, adding new small business customers, and reducing costs. In addition, we invested in various acquisitions that extend the range of products and services we offer to our customers, including marketing solutions and other services offerings and direct-to-consumer offerings. Throughout the remainder of 2012, we will continue our focus in these areas, with an emphasis on profitable revenue growth, improving our marketing solutions and other services offerings for small businesses and financial institutions, and assessing small to medium-sized acquisitions that complement our large customer bases with a focus on marketing solutions and other services.

Earnings for the first half of 2012, as compared to the first half of 2011, benefited from price increases and continuing initiatives to reduce our cost structure, primarily within our fulfillment, sales and marketing, and information technology organizations, as well as lower amortization expense related to previous acquisitions. Additionally, results for 2011 included pre-tax losses of $8.3 million from the retirement of long-term notes, including interest expense of $1.3 million due to the accelerated recognition of a related derivative loss and the settlement of interest rate swaps. These increases in net income were partially offset by volume reductions for our personal check businesses due primarily to the continuing decline in check usage, as well as higher performance-based compensation and investments in revenue-generating activities.

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Our Strategies

Details concerning our strategies were provided in the Management's Discussion and Analysis of Financial Condition and Results of Operations section of our Annual Report on Form 10-K for the year ended December 31, 2011 (the “2011 Form 10-K”). There were no significant changes in our strategies during the first half of 2012.

Consistent with our strategy, we acquired all of the outstanding stock of OrangeSoda, Inc. during the second quarter of 2012 for cash of $26.6 million, net of cash acquired. OrangeSoda is a provider of internet marketing services specializing in search, mobile and social media campaign strategies for small businesses. This acquisition is expected to generate approximately $15 million in incremental revenue and be $0.01 per share dilutive to earnings per share in 2012, after including transaction costs and acquisition-related amortization expense.

Cost Reduction Initiatives

As discussed in the Management's Discussion and Analysis of Financial Condition and Results of Operations section of the 2011 Form 10-K, we anticipate that we will realize net cost reductions of approximately $50 million in 2012, as compared to our 2011 results of operations. We are currently on track to realize these savings during 2012. To date, most of our savings are from our fulfillment, sales and marketing, and information technology organizations.

Outlook for 2012

We anticipate that consolidated revenue will be between $1.49 billion and $1.51 billion for 2012, compared to $1.42 billion for 2011. In Small Business Services, we expect the percentage increase in revenue to be in the low double digits compared to 2011 revenue of $846.4 million, as declines in core business products are expected to be more than offset by price increases, benefits from our e-commerce investments, and growth in our distributor, dealer and major accounts channels and in our marketing solutions and other services offerings, including incremental revenue from the PsPrint acquisition in July 2011 and the OrangeSoda acquisition in May 2012. In Financial Services, we expect the percentage decrease in revenue to be in the low single digits compared to 2011 revenue of $342.4 million, driven by check order declines of approximately five to six percent for the remainder of the year, partially offset by higher revenue per order, a new large customer which began contributing volume early in the first quarter of 2012, and continued contributions from marketing solutions and other services offerings. In Direct Checks, we expect the percentage decrease in revenue to be in the middle to high single digits compared to 2011 revenue of $228.8 million, driven by check usage declines.

We expect that 2012 diluted earnings per share will be between $3.20 and $3.35, including estimated total charges of $0.10 per share related to restructuring-related costs and transaction costs related to acquisitions, compared to $2.80 for 2011, which included total charges of $0.31 per share related to restructuring-related costs, losses on debt retirements, transaction costs related to acquisitions, and an asset impairment charge. We expect that the benefits of our cost reduction activities will be partially offset by continued investments in revenue growth opportunities, increased performance-based compensation and increases in material and delivery rates. We estimate that our annual effective tax rate for 2012 will be approximately 33%, the same as in 2011.

We anticipate that net cash provided by operating activities will be between $235 million and $245 million in 2012, compared to $235 million in 2011, driven by higher earnings, offset by higher income tax and contract acquisition payments, as well as contributions to our trust used to pay medical benefits. We anticipate contract acquisition payments of approximately $20 million in 2012, and we estimate that capital spending will be approximately $35 million in 2012 as we continue to invest in key revenue growth initiatives and order fulfillment and information technology infrastructure.

We believe that cash generated by operating activities, along with our credit facility, will be sufficient to support our operations, including capital expenditures, small-to-medium-sized acquisitions, required debt service and dividend payments, for the next 12 months. This includes payments of $84.8 million due in December 2012 when a portion of our long-term notes matures. We are focused on a disciplined approach to capital deployment that focuses on our need to continue investing in initiatives to drive revenue growth, including small-to-medium-sized acquisitions. We also anticipate that our board of directors will maintain our current dividend level. However, dividends are approved by the board of directors on a quarterly basis, and thus are subject to change. To the extent we have cash flow in excess of these priorities, our focus during 2012 will be on further reducing our debt if we are able to purchase our long-term notes on the open market and/or we may complete share repurchases to offset the dilutive impact of shares issued under our employee stock incentive plan. Because we had no borrowings on our credit facility during the first half of 2012, we may continue to accumulate larger cash and investment balances as we prepare to pay the $84.8 million of long-term debt due in December 2012.

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BUSINESS CHALLENGES/MARKET RISKS

Details concerning business challenges/market risks were provided in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our 2011 Form 10-K. There were no significant changes in these items during the first half of 2012.

CONSOLIDATED RESULTS OF OPERATIONS

Consolidated Revenue

	Quarter Ended June 30,						Six Months Ended June 30,
(in thousands, except per order amounts)	2012		2011		Change		2012		2011		Change
Revenue	$	371,014	$	346,274	7.1	%	$	748,996	$	696,026	7.6	%
Orders	13,218		13,391		(1.3	%)	27,071		27,209		(0.5	%)
Revenue per order	$	28.07	$	25.86	8.5	%	$27.67		$25.58		8.2	%

The increase in revenue for the second quarter and first half of 2012, as compared to the same periods in 2011, was primarily due to price increases in all three segments, incremental revenue generated by the businesses acquired during 2012 and 2011, growth in marketing solutions and other services and our Small Business Services distributor channel, and revenue from a new large financial institution client. These revenue increases were partially offset by lower order volume for our personal check businesses and continued pricing pressure on contract renewals within Financial Services.

The number of orders decreased slightly for the second quarter and first half of 2012, as compared to the same periods in 2011, due primarily to the continuing decline in check and forms usage, partially offset by growth in marketing solutions and other services and in the Small Business Services distributor channel. Revenue per order increased for the second quarter and first half of 2012, as compared to the same periods in 2011, primarily due to the benefit of price increases in all three segments and a shift to higher dollar Small Business Services orders as check usage continues to decline. Financial Services continues to experience pricing pressure on contract renewals.

Supplemental information regarding revenue by product and service category is as follows:

	Quarter Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Checks, including contract settlements	60.4	%	62.7	%	60.9	%	63.5	%
Forms	13.5	%	13.9	%	13.4	%	13.9	%
Accessories and other products	8.6	%	9.0	%	8.8	%	9.0	%
Marketing solutions, including services	12.3	%	9.1	%	11.6	%	8.6	%
Other services	5.2	%	5.3	%	5.3	%	5.0	%
Total revenue	100.0	%	100.0	%	100.0	%	100.0	%

Consolidated Gross Margin

	Quarter Ended June 30,								Six Months Ended June 30,
(in thousands)	2012			2011			Change		2012			2011			Change
Gross profit	$	243,420		$	225,587		7.9	%	$	493,914		$	455,177		8.5	%
Gross margin	65.6		%	65.1		%	0.5 pts.		65.9		%	65.4		%	0.5 pts.

We evaluate gross margin when analyzing our consolidated results of operations to gain important insight into significant profit drivers. As a significant portion of our revenue is generated from the sale of manufactured and purchased products, we believe the measure of gross margin best demonstrates our manufacturing and distribution performance, as well as the impact of pricing on our profitability. Gross margin is not a complete measure of profitability, as it omits selling, general and administrative (SG&A) expense. However, it is a financial measure which we believe is useful in evaluating our results of operations.

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Gross margin increased for the second quarter and first half of 2012, as compared to the same periods in 2011, due primarily to the benefit of price increases, as well as manufacturing and delivery efficiencies and other benefits resulting from our continued cost reduction initiatives. Partially offsetting these increases in gross margin were higher delivery rates and material costs in 2012 and increased performance-based compensation.

Consolidated Selling, General & Administrative Expense

	Quarter Ended June 30,								Six Months Ended June 30,
(in thousands)	2012			2011			Change		2012			2011			Change
SG&A expense	$	167,718		$	157,526		6.5	%	$	339,549		$	318,344		6.7	%
SG&A as a percentage of revenue	45.2		%	45.5		%	(0.3) pts.		45.3		%	45.7		%	(0.4) pts.

The increase in SG&A expense for the second quarter and first half of 2012, as compared to the same periods in 2011, was driven primarily by increased Small Business Services commission expense due to increased volume, incremental operating expenses of the businesses we acquired in 2012 and 2011, higher performance-based compensation expense, and investments in revenue-generating initiatives. These increases were partially offset by various expense reduction initiatives within sales, marketing and our shared services organization, as well as lower acquisition-related amortization related to previous acquisitions.

Net Restructuring Charges

	Quarter Ended June 30,							Six Months Ended June 30,
(in thousands)	2012		2011		Change			2012		2011		Change
Net restructuring charges	$	1,998	$	4,075	$	(2,077	)	$	2,636	$	5,502	$	(2,866	)

We recorded restructuring charges and reversals related to the cost reduction initiatives discussed under ExecutiveOverview. The charges and reversals for each period primarily relate to costs of our restructuring activities such as employee severance benefits and other direct costs of our initiatives, including employee and equipment moves, training and travel. Additional net restructuring reversals of $0.1 million were included within cost of goods sold in our consolidated statement of comprehensive income for the second quarter of 2012. Additional net restructuring charges of $0.5 million in the second quarter of 2011, $1.2 million in the first half of 2012 and $0.6 million in the first half of 2011 were included within cost of goods sold in our consolidated statements of comprehensive income. Further information can be found under Restructuring Costs.

Loss on Early Debt Extinguishment

	Quarter Ended June 30,						Six Months Ended June 30,
(in thousands)	2012		2011		Change		2012		2011		Change
Loss on early debt extinguishment	$	—	$	—	$	—	$	—	$	6,995	$	(6,995	)

During the first quarter of 2011, we retired $205.5 million of long-term notes, realizing a pre-tax loss of $7.0 million. We may retire additional debt, depending on prevailing market conditions, our liquidity requirements and other potential uses of cash, including acquisitions or share repurchases.

Interest Expense

	Quarter Ended June 30,								Six Months Ended June 30,
(in thousands)	2012			2011			Change		2012			2011			Change
Interest expense	$	11,356		$	12,054		(5.8	%)	$	23,053		$	24,092		(4.3	%)
Weighted-average debt outstanding	738,347			761,050			(3.0	%)	738,347			752,831			(1.9	%)
Weighted-average interest rate	5.77		%	5.83		%	(0.06) pts.		5.77		%	5.60		%	0.17 pts.

The decrease in interest expense for the second quarter of 2012, as compared to the second quarter of 2011, was due to our lower average debt level in 2012, as well as our lower average interest rate.

The decrease in interest expense for the first half of 2012, as compared to the first half of 2011, was due to our lower average debt level in 2012, as well as charges of $1.3 million in the first quarter of 2011 related to the retirement of long-term

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notes. The debt retirements required that we accelerate the recognition of a portion of a derivative loss, and we recognized expense related to the settlement of a portion of our interest rate swap agreements. These decreases in interest expense were partially offset by our higher average interest rate in 2012.

Income Tax Provision

	Quarter Ended June 30,								Six Months Ended June 30,
(in thousands)	2012			2011			Change		2012			2011			Change
Income tax provision	$	20,275		$	16,390		23.7	%	$	42,563		$	32,411		31.3	%
Effective tax rate	32.4		%	31.6		%	0.8 pts.		33.0		%	32.3		%	0.7 pts.

The increase in our effective tax rate for the second quarter of 2012, as compared to the second quarter of 2011, was primarily due to lower research and development credits in 2012 as the law providing for these credits expired at the end of 2011, as well as increased foreign tax expense.

The increase in our effective tax rate for the first half of 2012, as compared to the first half of 2011, was primarily due to a number of minor discrete credits to income tax expense in 2011, including a reduction in the valuation allowance related to foreign operating loss carryforwards, which collectively decreased our tax rate by 1.1 points. Additionally, we had lower research and development credits in 2012 as the law providing for these credits expired at the end of 2011. Discrete credits to income tax expense in 2012 collectively decreased our tax rate by 0.6 points and related primarily to state income taxes.

RESTRUCTURING COSTS

During the first half of 2012, we recorded net restructuring charges of $3.8 million. This amount included expenses related to our restructuring activities, including employee and equipment moves, training and travel, which were expensed as incurred, as well as net restructuring accruals of $2.1 million. The restructuring accruals included charges of $3.0 million related to severance for employee reductions in various functional areas as we continue to reduce costs, including the planned closing of a printing facility in the fourth quarter of 2012, the planned closing of two customer call centers during the third quarter of 2012, and the closing of a printing facility by early 2013. The restructuring accruals included severance benefits for approximately 195 employees. These charges were reduced by the reversal of $0.9 million of restructuring accruals recorded primarily in previous years, as fewer employees received severance benefits than originally estimated. The majority of the employee reductions included in our restructuring accruals are expected to be completed by the end of 2012, and we expect most of the related severance payments to be paid by mid-2013, utilizing cash from operations.

During 2011, we recorded net restructuring charges of $13.7 million. This amount included expenses related to our restructuring activities, including employee and equipment moves, training and travel, which were expensed as incurred, as well as net restructuring accruals of $7.1 million. The restructuring accruals included charges of $8.8 million related to severance for employee reductions across all functional areas as we continue to reduce costs. The restructuring accruals included severance benefits for approximately 400 employees. These charges were reduced by the reversal of $1.7 million of severance accruals, the majority of which were recorded in previous years, as fewer employees received severance benefits than originally estimated.

During 2010, we recorded net restructuring charges of $10.3 million. This amount included expenses related to our restructuring activities, including employee and equipment moves, training and travel, which were expensed as incurred, as well as net restructuring accruals of $7.5 million. The net restructuring accruals included charges of $9.3 million related to severance for employee reductions primarily resulting from reductions in various functional areas as we continued our cost reduction initiatives, as well as actions related to our integration of Custom Direct. The net restructuring accruals included severance benefits for approximately 470 employees. These charges were reduced by the reversal of $2.4 million of severance accruals recorded primarily in previous years, as fewer employees received severance benefits than originally estimated.

As a result of our employee reductions and facility closings, we expect to realize cost savings of approximately $4 million in cost of goods sold and $5 million in SG&A expense in 2012, in comparison to our 2011 results of operations, which represents a portion of the estimated $50 million of total net cost reductions we expect to realize in 2012. Expense reductions consist primarily of labor and facility costs.

Further information regarding our restructuring charges can be found under the caption “Note 8: Restructuring charges” of the Condensed Notes to Unaudited Consolidated Financial Statements appearing in Item 1 of this report.

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SEGMENT RESULTS

Additional financial information regarding our business segments appears under the caption “Note 13: Business segment information” of the Condensed Notes to Unaudited Consolidated Financial Statements appearing in Item 1 of this report.

Small Business Services

This segment's products and services are promoted through 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. Results for this segment were as follows:

	Quarter Ended June 30,								Six Months Ended June 30,
(in thousands)	2012			2011			Change		2012			2011			Change
Revenue	$	233,088		$	203,156		14.7	%	$	462,684		$	403,159		14.8	%
Operating income	38,241			34,329			11.4	%	77,015			70,099			9.9	%
Operating margin	16.4		%	16.9		%	(0.5) pts.		16.6		%	17.4		%	(0.8) pts.

The increase in revenue for the second quarter and first half of 2012, as compared to the same periods in 2011, was due primarily to price increases, incremental revenue from the acquisitions of PsPrint and OrangeSoda of $10.5 million for the second quarter of 2012 and $18.2 million for the first half of 2012, and growth in marketing solutions and other services revenue, our distributor channel and in business check revenue, as well as revenue generated via our relationship with a new large Financial Services financial institution client.

The increase in operating income for the second quarter and first half of 2012, as compared to the same periods in 2011, was due primarily to price increases, growth in marketing solutions and other services revenue and lower amortization related to acquisitions completed in previous years. Partially offsetting these increases in operating income were higher performance-based compensation, increases in delivery rates and material costs in 2012 and investments in revenue-generating initiatives.

Operating margin decreased for the second quarter and first half of 2012, as compared to the same periods in 2011, as the increase in commissions, expenses associated with acquisitions, higher performance-based compensation and investments in revenue-generating initiatives were only partially offset by the benefits of price increases and our cost reduction initiatives.

Financial Services

Financial Services' products and services are sold through multiple channels, including a direct sales force. Results for this segment were as follows:

	Quarter Ended June 30,								Six Months Ended June 30,
(in thousands)	2012			2011			Change		2012			2011			Change
Revenue	$	85,664		$	86,656		(1.1	%)	$	176,257		$	174,670		0.9	%
Operating income	19,981			13,214			51.2	%	41,902			28,911			44.9	%
Operating margin	23.3		%	15.2		%	8.1 pts.		23.8		%	16.6		%	7.2 pts.

The decrease in revenue for the second quarter of 2012, as compared to the second quarter of 2011, was due to a decrease in order volume resulting primarily from the continued decline in check usage, as well as continuing competitive pricing pressure on contract renewals. Partially offsetting these revenue decreases were price increases, revenue from a new large financial institution client and growth in marketing solutions and other services.

The increase in revenue for the first half of 2012, as compared to the first half of 2011, was due to price increases, revenue from a new large financial institution client, growth in marketing solutions and other services, and incremental revenue from the Banker's Dashboard® acquisition completed in April 2011. Partially offsetting these revenue increases was a decrease in order volume resulting primarily from the continued decline in check usage, as well as continuing competitive pricing pressure on contract renewals.

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Operating income and operating margin increased for the second quarter and first half of 2012, as compared to the same periods in 2011, primarily due to price increases and the benefit of our various cost reduction initiatives. Additionally, restructuring-related costs decreased $2.1 million for the second quarter of 2012 and $2.6 million for the first half of 2012, as compared to the same periods in 2011. These increases in operating income and operating margin were partially offset by higher performance-based compensation expense, increased delivery rates and material costs in 2012, as well as investments to generate additional revenue.

Direct Checks

Direct Checks sells products and services directly to consumers using direct response marketing via mail and the internet. We use a variety of direct marketing techniques to acquire new customers in the direct-to-consumer channel, including newspaper inserts, in-package advertising, statement stuffers and co-op advertising. We also use e-commerce strategies to direct traffic to our websites. Direct Checks sells under various brand names, including Checks Unlimited®, Designer® Checks, Checks.com, Check Gallery®, The Styles Check Company®, and Artistic Checks®, among others. Results for this segment were as follows:

	Quarter Ended June 30,								Six Months Ended June 30,
(in thousands)	2012			2011			Change		2012			2011			Change
Revenue	$	52,262		$	56,462		(7.4	%)	$	110,055		$	118,197		(6.9	)%
Operating income	15,354			16,443			(6.6	%)	32,684			32,431			0.8	%
Operating margin	29.4		%	29.1		%	0.3 pts.		29.7		%	27.4		%	2.3 pts.

The decrease in revenue for the second quarter and first half of 2012, as compared to the same periods in 2011, was due to a reduction in orders stemming from the decline in check usage. Partially offsetting this revenue decrease was higher revenue per order, partly due to price increases.

The decrease in operating income for the second quarter of 2012, as compared to the second quarter of 2011, was due primarily to the lower order volume, higher performance-based compensation expense and increased delivery rates and material costs in 2012. These decreases in operating income were partially offset by lower amortization related to the Custom Direct acquisition and benefits from our cost reduction initiatives.

The increase in operating income for the first half of 2012, as compared to the first half of 2011, was due primarily to lower amortization related to the Custom Direct acquisition and benefits from our cost reduction initiatives. These increases in operating income were partially offset by lower order volume, higher performance-based compensation expense, and increased delivery rates and material costs in 2012. Additionally, restructuring-related costs increased $0.7 million as compared to 2011.

Operating margin increased for the second quarter and first half of 2012, as compared to the same periods in 2011, as the lower amortization expense and benefits from our cost reduction initiatives exceeded the impact of higher performance-based compensation and increased delivery rates and material costs in 2012.

CASH FLOWS AND LIQUIDITY

As of June 30, 2012, we held cash and cash equivalents of $45.1 million. The following table shows our cash flow activity for the six months ended June 30, 2012 and 2011, and should be read in conjunction with the consolidated statements of cash flows appearing in Item 1 of this report.

	Six Months Ended June 30,
(in thousands)	2012			2011			Change
Net cash provided by operating activities	$	99,909		$	104,182		$	(4,273	)
Net cash used by investing activities	(45,732		)	(55,310		)	9,578
Net cash used by financing activities	(37,921		)	(49,186		)	11,265
Effect of exchange rate change on cash	188			557			(369		)
Net change in cash and cash equivalents	$	16,444		$	243		$	16,201

The $4.3 million decrease in cash provided by operating activities for the first half of 2012, as compared to the first

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half of 2011, was due primarily to higher income tax payments, a planned $7.9 million increase in contributions to our trust used to pay for medical benefits, as well as increases in contract acquisition and interest payments. These decreases in cash provided by operating activities were partially offset by increased cash provided by earnings, as well as a $7.8 million decrease in pension contributions and employee profit sharing/cash bonus payments related to our 2011 performance. We discontinued our defined contribution pension plan effective with the 2011 plan year. As such, the contribution made to this plan in early 2011 for the 2010 plan year was our last contribution to this plan.

Included in net cash provided by operating activities were the following operating cash outflows:

	Six Months Ended June 30,
(in thousands)	2012		2011		Change
Income tax payments	$	47,199	$	31,722	$	15,477
Voluntary employee beneficiary association (VEBA) trust contributions to fund medical benefits	27,855		20,000		7,855
Interest payments	23,112		18,966		4,146
Pension contributions and employee profit sharing/cash bonus payments	19,375		27,165		(7,790		)
Contract acquisition payments	10,516		5,615		4,901
Severance payments	4,226		3,505		721

Net cash used by investing activities in the first half of 2012 was $9.6 million lower than the first half of 2011 driven primarily by lower payments for acquisitions in 2012. In 2012, we acquired OrangeSoda and distributor operations for $28.5 million, net of cash acquired. In 2011, we acquired Banker's Dashboard and distributor operations for $36.8 million, net of cash acquired.

Net cash used by financing activities in the first half of 2012 was $11.3 million lower than the first half of 2011 due primarily to $215.0 million of payments on long-term debt in 2011 and lower payments for share repurchases in 2012. Partially offsetting these decreases in cash used were proceeds from issuing long-term debt of $200.0 million in 2011 and net proceeds of $6.0 million from borrowings on our line of credit in 2011.

Significant cash inflows, excluding those related to operating activities, for each period were as follows:

	Six Months Ended June 30,
(in thousands)	2012		2011		Change
Proceeds from issuing long-term debt	$	—	$	200,000	$	(200,000	)
Proceeds from issuing shares under employee plans	2,873		6,514		(3,641		)
Net proceeds from short-term debt	—		6,000		(6,000		)
Net proceeds from sale of facility	2,613		699		1,914

Significant cash outflows, excluding those related to operating activities, for each period were as follows:

	Six Months Ended June 30,
(in thousands)	2012		2011		Change
Payments on long-term debt, including costs of debt reacquisition	$	—	$	215,030	$	(215,030	)
Payments for acquisitions, net of cash acquired	28,459		36,754		(8,295		)
Cash dividends paid to shareholders	25,423		25,663		(240		)
Purchases of capital assets	17,334		19,296		(1,962		)
Payments for common shares repurchased	11,999		17,986		(5,987		)
Payments for debt issue costs	1,163		3,429		(2,266		)

We anticipate that net cash provided by operating activities will be between $235 million and $245 million in 2012, compared to $235 million in 2011, driven by higher earnings offset by higher income tax payments and contributions to our trust used to pay medical benefits. We anticipate that cash generated by operating activities in 2012 will be utilized for payments of $84.8 million due in December 2012 when a portion of our long-term notes matures, dividend payments of approximately $50 million, capital expenditures of approximately $35 million, payments for acquisitions already completed in

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2012 of $28.5 million, additional debt reduction if we are able to purchase our long-term notes on the open market, share repurchases, and possibly additional small-to-medium-sized acquisitions. We intend to focus our capital spending on key revenue growth initiatives and investments in order fulfillment and information technology infrastructure.

We had $191.5 million available for borrowing under our credit facility as of June 30, 2012. We believe that cash generated by operating activities, along with our credit facility, will be sufficient to support our operations for the next 12 months, including capital expenditures, possible small-to-medium-sized acquisitions, required debt service and dividend payments.

CAPITAL RESOURCES

Our total debt was $742.1 million as of June 30, 2012, an increase of $0.4 million from December 31, 2011. We have entered into interest rate swaps to hedge against changes in the fair value of our long-term debt due in 2012 and 2014. As of June 30, 2012, interest rate swaps with a notional amount of $282.8 million were designated as fair value hedges. The carrying amount of long-term debt as of June 30, 2012 included a $3.9 million increase related to adjusting the hedged debt for changes in its fair value. As of December 31, 2011, this fair value adjustment was an increase of $3.6 million. Further information concerning the interest rate swaps and our outstanding debt can be found under the captions “Note 6: Derivative financial instruments” and “Note 10: Debt” of the Condensed Notes to Unaudited Consolidated Financial Statements appearing in Item 1 of this report. Information regarding our debt service obligations can be found under Off-Balance Sheet Arrangements, Guarantees and Contractual Obligations in the 2011 Form 10-K.

Our capital structure for each period was as follows:

	June 30, 2012				December 31, 2011
(in thousands)	Amount		Weighted- average interest rate		Amount		Weighted- average interest rate		Change
Fixed interest rate	$	455,472	6.9	%	$	455,466	6.9	%	$	6
Floating interest rate	286,671		3.9	%	286,240		3.9	%	431
Total debt	742,143		5.8	%	741,706		5.8	%	437
Shareholders’ equity	358,917				302,689				56,228
Total capital	$	1,101,060			$	1,044,395			$	56,665

We have an outstanding authorization from our board of directors to purchase up to 10 million shares of our common stock. This authorization has no expiration date, and 4.7 million shares remained available for purchase under this authorization as of June 30, 2012. During the first half of 2012, we purchased 0.5 million shares for $12.0 million. Information regarding changes in shareholders' equity can be found in the consolidated statement of shareholders' equity appearing in Item 1 of this report.

We may, from time to time, consider retiring outstanding debt through open market purchases, privately negotiated transactions or by other means. Any such repurchases or exchanges would depend on prevailing market conditions, our liquidity requirements and other potential uses of cash, including acquisitions or share repurchases.

As of December 31, 2011, we had a $200.0 million credit facility, which was scheduled to expire in March 2013. In February 2012, we modified the terms of this credit facility, extending its term to February 2017. Additionally, we lowered the commitment fee to a range of 0.20% to 0.45% 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. We were in compliance with all debt covenants as of June 30, 2012 and we expect to remain in compliance with all debt covenants throughout the next 12 months.

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Amounts outstanding under our credit facility were as follows:

(in thousands)	Six Months Ended June 30, 2012		Year Ended December 31, 2011
Daily average amount outstanding	$	—	$	21,655
Weighted-average interest rate	—		3.03		%

No amounts were outstanding under our credit facility as of June 30, 2012 or December 31, 2011. As of June 30, 2012, amounts were available for borrowing under our credit facility as follows:

(in thousands)	Total available
Credit facility commitment	$	200,000
Outstanding letters of credit	(8,535		)
Net available for borrowing as of June 30, 2012	$	191,465

OTHER FINANCIAL POSITION INFORMATION

Contract acquisition costs – Other non-current assets include contract acquisition costs of our Financial Services segment. These costs, which are essentially pre-paid product discounts, are recorded as non-current assets upon contract execution and are amortized, generally on the straight-line basis, as reductions of revenue over the related contract term. Cash payments made for contract acquisition costs were $10.5 million for the first half of 2012 and $5.6 million for the first half of 2011. We anticipate cash payments of approximately $20 million in 2012. Changes in contract acquisition costs during the six months ended June 30, 2012 and 2011 were as follows:

	Six Months Ended June 30,
(in thousands)	2012			2011
Balance, beginning of year	$	55,076		$	57,476
Additions	2,668			1,770
Amortization	(8,546		)	(8,665		)
Other	(292		)	(170		)
Balance, end of period	$	48,906		$	50,411

The number of checks being written has been in decline since the mid-1990s, which has contributed to increased competitive pressure when attempting to retain or acquire clients. Both the number of financial institution clients requesting contract acquisition payments and the amount of the payments has fluctuated significantly from year to year. Although we anticipate that we will selectively continue to make contract acquisition payments, we cannot quantify future amounts with certainty. The amount paid depends on numerous factors such as the number and timing of contract executions and renewals, competitors’ actions, overall product discount levels and the structure of up-front product discount payments versus providing higher discount levels throughout the term of the contract.

Liabilities for contract acquisition payments are recorded upon contract execution. These obligations are monitored for each contract and are adjusted as payments are made. Contract acquisition payments due within the next year are included in accrued liabilities in our consolidated balance sheets. These accruals were $5.2 million as of June 30, 2012 and $13.1 million as of December 31, 2011. Accruals for contract acquisition payments included in other non-current liabilities in our consolidated balance sheets were $7.3 million as of June 30, 2012 and $7.5 million as of December 31, 2011.

Foreign cash and investments - As of June 30, 2012, our subsidiaries located in Canada held cash and marketable securities of $21.7 million. Deferred income taxes have not been recognized on unremitted earnings of our foreign subsidiaries, as these amounts are intended to be reinvested indefinitely in the operations of those subsidiaries. If we were to repatriate the cash and marketable securities into the U.S., we would incur a U.S. tax liability of approximately $4 million.

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OFF-BALANCE SHEET ARRANGEMENTS, GUARANTEES AND CONTRACTUAL OBLIGATIONS

It is not our general business practice to enter into off-balance sheet arrangements or to guarantee the performance of third parties. 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 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 likely 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. Further information can be found under the caption “Note 11: Other commitments and contingencies” of the Condensed Notes to Unaudited Consolidated Financial Statements appearing in the Item 1 of this report.

We are not engaged in any transactions, arrangements or other relationships with unconsolidated entities or other third parties that are reasonably likely to have a material effect on our liquidity or on our access to, or requirements for, capital resources. In addition, we have not established any special purpose entities.

A table of our contractual obligations was provided in the Management's Discussion and Analysis of Financial Condition and Results of Operations section of the 2011 Form 10-K. There were no significant changes in these obligations during the first half of 2012.

RELATED PARTY TRANSACTIONS

We have not entered into any material related party transactions during the first half of 2012 or during 2011.

CRITICAL ACCOUNTING POLICIES

A description of our critical accounting policies was provided in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of the 2011 Form 10-K. There were no changes in these policies during the first half of 2012.

NEW ACCOUNTING PRONOUNCEMENTS

Information regarding the accounting policies adopted during the first half of 2012 can be found under the caption “Note 2: New accounting pronouncements” of the Condensed Notes to Unaudited Consolidated Financial Statements appearing in Item 1 of this report.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

The Private Securities Litigation Reform Act of 1995 (the Reform Act) provides a “safe harbor” for forward-looking statements to encourage companies to provide prospective information. We are filing this cautionary statement in connection with the Reform Act. When we use the words or phrases “should result,” “believe,” “intend,” “plan,” “are expected to,” “targeted,” “will continue,” “will approximate,” “is anticipated,” “estimate,” “project” or similar expressions in this Quarterly Report on Form 10-Q, in future filings with the Securities and Exchange Commission, in our press releases and in oral statements made by our representatives, they indicate forward-looking statements within the meaning of the Reform Act.

We want to caution you that any forward-looking statements made by us or on our behalf are subject to uncertainties and other factors that could cause them to be incorrect. Known material risks are discussed in Item 1A of the 2011 Form 10-K and are incorporated into this Item 2 of this report on Form 10-Q as if fully stated herein. Although we have attempted to compile a comprehensive list of these important factors, we want to caution you that other factors may prove to be important in affecting future operating results. New factors emerge from time to time, and it is not possible for us to predict all of these

41

factors, nor can we assess the impact each factor or combination of factors may have on our business.

You are further cautioned not to place undue reliance on those forward-looking statements because they speak only of our views as of the date the statements were made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

We are exposed to changes in interest rates primarily as a result of the borrowing activities used to support our capital structure, maintain liquidity and fund business operations. We do not enter into financial instruments for speculative or trading purposes. The nature and amount of debt outstanding can be expected to vary as a result of future business requirements, market conditions and other factors. As of June 30, 2012, our total debt was comprised of the following:

(in thousands)	Carrying amount		Fair value(1)		Weighted-average interest rate
Long-term notes maturing December 2012, including increase of $474 related to the cumulative change in fair value of hedged debt	$	85,296	$	85,934	3.3	%
Long-term notes maturing October 2014, including increase of $3,475 related to the cumulative change in fair value of hedged debt	256,847		256,035		4.3	%
Long-term notes maturing June 2015	200,000		211,000		7.4	%
Long-term notes maturing March 2019	200,000		212,000		7.0	%
Total debt	$	742,143	$	764,969	5.8	%

⁽¹⁾ Fair value is based on quoted market prices as of June 30, 2012 for identical liabilities when traded as assets.

We may, from time to time, retire outstanding debt through open market purchases, privately negotiated transactions or otherwise. Any such repurchases or exchanges would depend on prevailing market conditions, our liquidity requirements and other potential uses of cash, including acquisitions or share repurchases.

We have entered into interest rate swaps to hedge against changes in the fair value of our long-term debt due in 2012 and 2014. As of June 30, 2012, interest rate swaps with a notional amount of $282.8 million were designated as fair value hedges. The carrying amount of long-term debt as of June 30, 2012 included a $3.9 million increase related to adjusting the hedged debt for changes in its fair value. 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 comprehensive income. When the change in the fair value of the interest rate swaps and the hedged debt are not equal (i.e., hedge ineffectiveness), the difference in the changes in fair value affects the reported amount of interest expense in our consolidated statements of comprehensive income. Information regarding hedge ineffectiveness can be found under the caption “Note 7: Fair value measurements” of the Condensed Notes to Unaudited Consolidated Financial Statements appearing in Item 1 of this report.

Based on the outstanding variable rate debt in our portfolio, a one percentage point change in interest rates would have resulted in a $1.4 million change in interest expense for the first half of 2012, excluding any hedge ineffectiveness related to our interest rate swaps.

We are exposed to changes in foreign currency exchange rates. Investments in, loans and advances to foreign subsidiaries and branches, as well as the operations of these businesses, are denominated in foreign currencies, primarily the Canadian dollar. The effect of exchange rate changes is expected to have a minimal impact on our results of operations and cash flows, as our foreign operations represent a relatively small portion of our business.

See Business Challenges/Market Risks in Item 2 of this report for further discussion of market risks.

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Item 4.  Controls and Procedures.

(a)  Disclosure Controls and Procedures — As of the end of the period covered by this report (the “Evaluation Date”), we carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the “1934 Act”)). Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that, as of the Evaluation Date, our disclosure controls and procedures were effective to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in applicable rules and forms, and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

(b) Internal Control Over Financial Reporting —There were no changes in our internal control over financial reporting identified in connection with our evaluation during the quarter ended June 30, 2012, which have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II−OTHER INFORMATION

Item 1. Legal Proceedings.

We record provisions with respect to identified claims or lawsuits when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Claims and lawsuits are reviewed quarterly and provisions are taken or adjusted to reflect the status of a particular matter. We believe the recorded reserves in our consolidated financial statements are adequate in light of the probable and estimable outcomes. Recorded liabilities were not material to our financial position, results of operations or liquidity, and we do not believe that any of the currently identified claims or litigation, either individually or in the aggregate, will materially affect our financial position, results of operations or liquidity.

Item 1A.  Risk Factors.

Our risk factors are outlined in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2011 (the “2011 Form 10-K”). There have been no significant changes to these risk factors since we filed the 2011 Form 10-K.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.

The following table shows purchases of our own equity securities, based on trade date, which we completed during the second quarter of 2012.

Period	Total number of shares (or units) purchased	Average price paid per share (or unit)		Total number of shares (or units) purchased as part of publicly announced plans or programs	Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs
April 1, 2012 - April 30, 2012	—	$	—	—	5,257,017
May 1, 2012 - May 31, 2012	508,671	23.59		508,671	4,748,346
June 1, 2012 - June 30, 2012	—	—		—	4,748,346
Total	508,671	$	23.59	508,671	4,748,346

In August 2003, our board of directors approved an authorization to purchase up to 10 million shares of our common stock. This authorization has no expiration date and 4.7 million shares remained available for purchase under this authorization as of June 30, 2012.

While not considered repurchases of shares, we do at times withhold shares that would otherwise be issued under

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equity-based awards to cover the withholding taxes due as a result of the exercising or vesting of such awards. During the second quarter of 2012, we withheld 2,020 shares in conjunction with the vesting and exercise of equity-based awards.

Item 3.  Defaults Upon Senior Securities.

None.

Item 4.  Mine Safety Disclosures.

Not applicable.

Item 5.  Other Information.

None.

Item 6.  Exhibits.

Exhibit Number	Description	Method of Filing
3.1	Amended and Restated Articles of Incorporation (incorporated by reference to the Quarterly Report on Form 10-Q for the quarter ended September 30, 2010)	*
3.2	Bylaws (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed with the Commission on October 23, 2008)	*
4.1	Amended and Restated Rights Agreement, dated as of December 20, 2006, by and between us and Wells Fargo Bank, National Association, as Rights Agent, which includes as Exhibit A thereto, the Form of Rights Certificate (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed with the Commission on December 21, 2006)	*
4.2	First Supplemental Indenture dated as of December 4, 2002, by and between us and Wells Fargo Bank Minnesota, N.A. (formerly Norwest Bank Minnesota, National Association), as trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed with the Commission on December 5, 2002)	*
4.3	Second Supplemental Indenture, dated as of March 11, 2011, between us and Wells Fargo Bank Minnesota, N.A. (formerly Norwest Bank Minnesota, National Association), as trustee (incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K filed with the Commission on March 15, 2011)	*
4.4	Indenture, dated as of April 30, 2003, by and between us and Wells Fargo Bank Minnesota, N.A. (formerly Norwest Bank Minnesota, National Association), as trustee (incorporated by reference to Exhibit 4.8 to the Registration Statement on Form S-3 (Registration No. 333-104858) filed with the Commission on April 30, 2003)	*
4.5	Form of Officer’s Certificate and Company Order authorizing the 2014 Notes, series B (incorporated by reference to Exhibit 4.9 to the Registration Statement on Form S-4 (Registration No. 333-120381) filed with the Commission on November 12, 2004)	*
4.6	Specimen of 5 1/8% notes due 2014, series B (incorporated by reference to Exhibit 4.10 to the Registration Statement on Form S-4 (Registration No. 333-120381) filed with the Commission on November 12, 2004)	*
4.7	Indenture, dated as of May 14, 2007, by and between us and The Bank of New York Trust Company, N.A., as trustee (including form of 7.375% Senior Notes due 2015) (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed with the Commission on May 15, 2007)	*

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Exhibit Number	Description	Method of Filing
4.8	Supplemental Indenture, dated as of March 12, 2010, among us, the guarantors listed on the signature pages thereto and The Bank of New York Mellon Trust Company, N.A. (formerly The Bank of New York Trust Company, N.A.), as trustee (incorporated by reference to Exhibit 4.9 to the Annual Report on Form 10-K for the year ended December 31, 2010)	*
4.9	Supplemental Indenture, dated as of September 9, 2010, among us, the guarantors listed on the signature pages thereto and The Bank of New York Mellon Trust Company, N.A. (formerly The Bank of New York Trust Company, N.A.), as trustee (incorporated by reference to Exhibit 4.10 to the Annual Report on Form 10-K for the year ended December 31, 2010)	*
4.10	Indenture, dated as of March 15, 2011, by and among us, the guarantors listed on the signature pages thereto and U.S. Bank National Association, as trustee (including form of 7.00% Senior Notes due 2019) (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed with the Commission on March 15, 2011)	*
4.11	Supplemental Indenture, dated as of July 30, 2012, among us, OrangeSoda, Inc., the guarantors listed on the signature pages thereto and U.S. Bank National Association, as trustee	Filed herewith
4.12	Supplemental Indenture, dated as of July 30, 2012, among us, OrangeSoda, Inc., the guarantors listed on the signature pages thereto and The Bank of New York Mellon Trust Company, N.A. (formerly The Bank of New York Trust Company, N.A.), as trustee	Filed herewith
10.1	Deluxe Corporation 2012 Annual Incentive Plan (incorporated by reference to Appendix A of our definitive proxy statement filed with the Commission on March 12, 2012)	*
10.2	Deluxe Corporation 2012 Long-Term Incentive Plan (incorporated by reference to Appendix B of our definitive proxy statement filed with the Commission on March 12, 2012)	*
12.1	Statement re: Computation of Ratios	Filed herewith
31.1	CEO Certification of Periodic Report pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
31.2	CFO Certification of Periodic Report pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
32.1	CEO and CFO Certification of Periodic Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Furnished herewith
101	Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of June 30, 2012 and December 31, 2011, (ii) Consolidated Statements of Comprehensive Income for the quarters and six months ended June 30, 2012 and 2011, (iii) Consolidated Statement of Shareholders' Equity for the six months ended June 30, 2012, (iv) Consolidated Statements of Cash Flows for the six months ended June 30, 2012 and 2011, and (v) Condensed Notes to Unaudited Consolidated Financial Statements**	Filed herewith

___________________

* Incorporated by reference

** Submitted electronically with this report

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	DELUXE CORPORATION             (Registrant)
Date: August 3, 2012	/s/ Lee Schram
	Lee Schram Chief Executive Officer (Principal Executive Officer)
Date: August 3, 2012	/s/ Terry D. Peterson
	Terry D. Peterson Senior Vice President, Chief Financial Officer (Principal Financial Officer)
Date: August 3, 2012	/s/ Jeffrey J. Bata
	Jeffrey J. Bata Vice President, Controller and Chief Accounting Officer (Principal Accounting Officer)

46

INDEX TO EXHIBITS

Exhibit No.	Description
4.11	Supplemental Indenture, dated as of July 30, 2012, among us, OrangeSoda, Inc., the guarantors listed on the signature pages thereto and U.S. Bank National Association, as trustee
4.12	Supplemental Indenture, dated as of July 30, 2012, among us, OrangeSoda, Inc., the guarantors listed on the signature pages thereto and The Bank of New York Mellon Trust Company, N.A. (formerly The Bank of New York Trust Company, N.A.), as trustee
12.1	Statement re: Computation of Ratios
31.1	CEO Certification of Periodic Report pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	CFO Certification of Periodic Report pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	CEO and CFO Certification of Periodic Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of June 30, 2012 and December 31, 2011, (ii) Consolidated Statements of Comprehensive Income for the quarters and six months ended June 30, 2012 and 2011, (iii) Consolidated Statement of Shareholders' Equity for the six months ended June 30, 2012, (iv) Consolidated Statements of Cash Flows for the six months ended June 30, 2012 and 2011, and (v) Condensed Notes to Unaudited Consolidated Financial Statements

47

EX-4.11

Exhibit 4.11

SUPPLEMENTAL INDENTURE

This Supplemental Indenture, dated as of July 30, 2012 (this “SupplementalIndenture”), among OrangeSoda, Inc., a Nevada corporation (the “Guarantor”), Deluxe Corporation (together with its successors and assigns, the “Company”), each other Subsidiary Guarantor listed on the signature pages hereto (collectively, the “Existing Guarantors”) and U.S. Bank National Association, as Trustee under the Indenture referred to below.

W I T N E S S E T H:

WHEREAS, the Company, the Existing Guarantors and the Trustee have heretofore executed and delivered an Indenture, dated as of March 15, 2011 (as amended, supplemented, waived or otherwise modified, the “Indenture”), providing for the issuance of 7.00% Senior Notes due 2019 of the Company (the “Securities”);

WHEREAS, Section 3.7 of the Indenture provides that under certain circumstances the Company is required to cause each Restricted Subsidiary that Guarantees any Indebtedness of the Company to execute and deliver to the Trustee a supplemental indenture pursuant to which such Restricted Subsidiary will unconditionally Guarantee, as primary obligor and not merely as surety, jointly and severally with each other Subsidiary Guarantor, the full and punctual payment of the principal of, premium, if any, and interest on the Securities and all other monetary obligations of the Company under the Indenture; and

WHEREAS, pursuant to Section 10.1 of the Indenture, the Trustee, the Company, the Existing Guarantors and the Guarantor are authorized to execute and deliver this Supplemental Indenture to amend or supplement the Indenture, without the consent of any Holder;

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Guarantor, the Company, the Existing Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Securities as follows:

ARTICLE I

Definitions

SECTION 1.1 Defined Terms. As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein as therein defined, except that the term “Holders” in this Supplemental Indenture shall refer to the term “Holders” as defined in the Indenture and the Trustee acting on behalf or for the benefit of such Holders. The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

ARTICLE II

Agreement to be Bound; Guarantee

SECTION 2.1 Agreement to be Bound. The Guarantor hereby becomes a party to the Indenture as a Subsidiary Guarantor and as such will have all of the rights and be subject to all of the obligations and agreements of a Subsidiary Guarantor under the Indenture, including, but not limited to Article XI thereof.

ARTICLE III

Miscellaneous

SECTION 3.1 Notices. All notices and other communications to the Guarantor shall be given as provided in this Supplemental Indenture to the Guarantor, c/o Deluxe Corporation, pursuant to Section 12.2 of the Indenture, with a copy to the Company as provided in the Indenture for notices to the Company.

SECTION 3.2 Parties. Nothing expressed or mentioned herein is intended or shall be construed to give any Person, firm or corporation, other than the Holders and the Trustee, any legal or equitable right, remedy or claim under or in respect of this Supplemental Indenture or the Indenture or any provision herein or therein contained.

SECTION 3.3 Governing Law. This Supplemental Indenture shall be governed by, and construed in accordance with, the laws of the State of New York.

SECTION 3.4 Ratification of Indenture; Supplemental Indenture Part of Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Securities heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee makes no representation or warranty as to the validity or sufficiency of this Supplemental Indenture.

SECTION 3.5 Counterparts. The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement.

SECTION 3.6 Headings. The headings of the Articles and the Sections in this Guarantee are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

SECTION 3.7 Trustee. The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture. The recitals and statements herein are deemed to be those of the Guarantor and not of the Trustee.

IN WITNESS WHEREOF, the parties hereto have caused the Indenture to be duly executed as of the date first above written.

ORANGESODA, INC.,

as a Subsidiary Guarantor

By: /s/ Jeff Johnson

Name: Jeff Johnson

Title: Assistant Treasurer

DELUXE CORPORATION

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

CUSTOM DIRECT, INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

CUSTOM DIRECT LLC,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

DELUXE BUSINESS OPERATIONS, INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

[Signature Page 1 of 4 to Supplemental Indenture to 2011 Indenture]

DELUXE ENTERPRISE OPERATIONS, INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

DELUXE FINANCIAL SERVICES, INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

DELUXE MANUFACTURING OPERATIONS, INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

DELUXE SMALL BUSINESS SALES, INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

HOSPTOPIA.COM INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

[Signature Page 2 of 4 to Supplemental Indenture to 2011 Indenture]

SAFEGUARD BUSINESS SYSTEMS, INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

SAFEGUARD HOLDINGS, INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

[Signature Page 3 of 4 to Supplemental Indenture to 2011 Indenture]

U.S. BANK NATIONAL ASSOCIATION

as Trustee

By: /s/ Donald T. Hurrelbrink

Name: Donald T. Hurrelbrink

Title: Vice President

[Signature Page 4 of 4 to Supplemental Indenture to 2011 Indenture]

EX-4.12

Exhibit 4.12

SUPPLEMENTAL INDENTURE

This Supplemental Indenture, dated as of July 30, 2012 (this “Supplemental Indenture”), among OrangeSoda, Inc., a Nevada corporation (the “Guarantor”), Deluxe Corporation (together with its successors and assigns, the “Company”), each other Subsidiary Guarantor listed on the signature pages hereto (the “Existing Guarantors”) and The Bank of New York Mellon Trust Company, N.A. (f/k/a The Bank of New York Trust Company, N.A.), as Trustee under the Indenture referred to below.

W I T N E S S E T H:

WHEREAS, the Company and the Trustee have heretofore executed and delivered an Indenture, dated as of May 14, 2007 (as amended, supplemented, waived or otherwise modified, the “Indenture”), providing for the issuance of 7.375% Senior Notes due 2015 of the Company (the “Securities”);

WHEREAS, Section 3.7 of the Indenture provides that under certain circumstances the Company is required to cause each Restricted Subsidiary that Guarantees any Indebtedness of the Company to execute and deliver to the Trustee a supplemental indenture pursuant to which such Restricted Subsidiary will unconditionally Guarantee, as primary obligor and not merely as surety, jointly and severally with each other Subsidiary Guarantor, the full and punctual payment of the principal of, premium, if any, and interest on the Securities and all other monetary obligations of the Company under the Indenture; and

WHEREAS, pursuant to Section 10.1 of the Indenture, the Trustee, the Company, the Existing Guarantors and the Guarantor are authorized to execute and deliver this Supplemental Indenture to amend or supplement the Indenture, without the consent of any Holder;

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Guarantor, the Company, the Existing Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Securities as follows:

ARTICLE I

Definitions

SECTION 1.1 Defined Terms. As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein as therein defined, except that the term “Holders” in this Supplemental Indenture shall refer to the term “Holders” as defined in the Indenture and the Trustee acting on behalf or for the benefit of such Holders. The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

ARTICLE II

Agreement to be Bound; Guarantee

SECTION 2.1 Agreement to be Bound. The undersigned hereby becomes a party to the Indenture as a Subsidiary Guarantor and as such will have all of the rights and be subject to all of the obligations and agreements of a Subsidiary Guarantor under the Indenture. The Guarantor agrees to be bound by all of the provisions of the Indenture applicable to a Subsidiary Guarantor and to perform all of the obligations and agreements of a Subsidiary Guarantor under the Indenture.

SECTION 2.2 Guarantee. The Guarantor hereby fully, unconditionally and irrevocably Guarantees, as primary obligor and not merely as surety, jointly and severally with each other Subsidiary Guarantor, to each Holder of the Securities the full and punctual payment when due, whether at maturity, by acceleration, by redemption or otherwise, of the principal of, premium, if any, and interest on the Securities and all other monetary obligations of the Company under the Indenture (including interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to the Company or any Subsidiary Guarantor whether or not a claim for post‑filing or post‑petition interest is allowed in such proceeding) (all the foregoing being hereinafter collectively called the “Guarantor Obligations”). The Guarantor further agrees (to the extent permitted by law) that the Guarantor Obligations may be extended or renewed, in whole or in part, without notice or further assent from it, and that it will remain bound under this Supplemental Indenture notwithstanding any extension or renewal of any Guarantor Obligation.

The Guarantor waives presentation to, demand of payment from and protest to the Company of any of the Guarantor Obligations and also waives notice of protest for nonpayment. The Guarantor waives (to the extent permitted by law) notice of any default under the Securities or the Guarantor Obligations.

The Guarantor further agrees that its Subsidiary Guarantee herein constitutes a Guarantee of payment when due (and not a Guarantee of collection) and waives any right to require that any resort be had by any Holder to any security held for payment of the Guarantor Obligations.

Except as set forth under Section 2.3, the obligations of the Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason (other than payment of the Guarantor Obligations in full), including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense of setoff, counterclaim, recoupment or termination whatsoever or by reason of the invalidity, illegality or unenforceability of the Guarantor Obligations or otherwise. Without limiting the generality of the foregoing, the Guarantor Obligations of the Guarantor herein shall not be discharged or impaired or otherwise affected by (a) the failure of any Holder to assert any claim or demand or to enforce any right or remedy against the Company or any other person under this Supplemental Indenture, the Securities or any other agreement or otherwise; (b) any extension or renewal of any thereof; (c) any rescission, waiver, amendment or modification of any of the terms or provisions of this Supplemental Indenture, the Securities or any other agreement; (d) the release of any security held by any Holder or the Trustee for the Guarantor Obligations or any of them; (e) the failure of any Holder to exercise any right or remedy against any other Subsidiary Guarantor, (f) any change in the ownership of the Company; (g) by any default, failure or delay, willful or otherwise, in the performance of the Guarantor Obligations, or (h) by any other act or thing or omission or delay to do any other act or thing which may or might in any manner or to any extent vary the risk of any Subsidiary Guarantor or would otherwise operate as a discharge of the Subsidiary Guarantor as a matter of law or equity.

Subject to the provisions of Section 3.7 of the Indenture, the Guarantor agrees that its Subsidiary Guarantee herein shall remain in full force and effect until payment in full of all the Guarantor Obligations or the Guarantor is released from its Subsidiary Guarantee in compliance with Section 2.3. The Guarantor further agrees that its Subsidiary Guarantee herein shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of principal of, premium, if any, or interest on any of the Guarantor Obligations is rescinded or must otherwise be restored by any Holder upon the bankruptcy or reorganization of the Company or otherwise.

In furtherance of the foregoing and not in limitation of any other right which any Holder has at law or in equity against the Guarantor by virtue hereof, upon the failure of the Company to pay any of the Guarantor Obligations when and as the same shall become due, whether at maturity, by acceleration, by redemption or otherwise, the Guarantor hereby promises to and will, upon receipt of written demand by the Trustee, forthwith pay, or cause to be paid, in cash, to the Holders an amount equal to the sum of (i) the unpaid amount of such Guarantor Obligations then due and owing and (ii) accrued and unpaid interest on such Guarantor Obligations then due and owing (but only to the extent not prohibited by law) (including interest accruing after the filing of any petition in bankruptcy or the commencement of any insolvency, reorganization or like proceeding relating to the Company or any Subsidiary Guarantor whether or not a claim for post-filing or post-petition interest is allowed in such proceeding).

The Guarantor further agrees that, as between the Guarantor, on the one hand, and the Holders, on the other hand, (x) the maturity of the Guarantor Obligations Guaranteed hereby may be accelerated as provided in this Supplemental Indenture for the purposes of its Subsidiary Guarantee herein, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Guarantor Obligations Guaranteed hereby and (y) in the event of any such declaration of acceleration of such Guarantor Obligations, such Guarantor Obligations (whether or not due and payable) shall forthwith become due and payable by the Guarantor for the purposes of this Subsidiary Guarantee.

The Guarantor also agrees to pay any and all costs and expenses (including reasonable attorneys' fees and expenses) incurred by the Trustee or the Holders in enforcing any rights under this Section.

SECTION 2.3 Limitation on Liability; Termination, Release and Discharge.

(a) Any term or provision of this Supplemental Indenture to the contrary notwithstanding, the obligations of the Guarantor hereunder will be limited to the maximum amount as will, after giving effect to all other contingent and fixed liabilities of the Guarantor and after giving effect to any collections from or payments made by or on behalf of any other Subsidiary Guarantor, if any, in respect of the obligations of such other Subsidiary Guarantor under its Subsidiary Guarantee or pursuant to its contribution obligations under this Supplemental Indenture, result in the obligations of the Guarantor under this Guarantee not constituting a fraudulent conveyance or fraudulent transfer under federal or state law and not otherwise being void or voidable under any similar laws affecting the rights of creditors generally.

(b) Upon the sale or disposition of the Guarantor (by merger, consolidation, the sale of its Capital Stock (such that it is not a direct or indirect Subsidiary of the Company) or the sale of all or substantially all of its assets (other than by lease)), and whether or not the Guarantor is the surviving corporation in such transaction, to or with a Person which is not the Company or a Restricted Subsidiary of the Company, the Guarantor will be automatically released from all its obligations under this Supplemental Indenture and the Indenture and this Guarantee will terminate; provided, however, that the sale or other disposition is in compliance with the Indenture, including Sections 3.5, 3.9 and 5.1.

(c) The Guarantor shall be deemed released from all its obligations under this Supplemental Indenture and the Indenture and this Guarantee shall terminate (x) upon the legal defeasance of the Securities pursuant to the provisions of Article IX of the Indenture or (y) in accordance with Section 3.7 of the Indenture.

(d) The Guarantor shall be released from all of its obligations under this Supplemental Indenture, the Indenture and its Guarantee if the Company designates the Guarantor as an Unrestricted Subsidiary and such designation complies with the other applicable provisions of this Supplemental Indenture and the Indenture.

(e) The Guarantor shall be released from all of its obligations under this Supplemental Indenture, the Indenture and this Guarantee upon satisfaction and discharge of the Indenture pursuant to Section 9.1(a) of the Indenture.

SECTION 2.4 No Subrogation. Notwithstanding any payment or payments made by the Guarantor hereunder, no Subsidiary Guarantor shall be entitled to be subrogated to any of the rights of the Trustee or any Holder against the Company or any other Subsidiary Guarantor, if any, or any collateral security or guarantee or right of offset held by the Trustee or any Holder for the payment of the Guarantor Obligations, nor shall the Guarantor seek or be entitled to seek any contribution or reimbursement from the Company or any other Subsidiary Guarantor, if any, in respect of payments made by the Guarantor hereunder until all amounts owing to the Trustee and the Holders by the Company on account of the Guarantor Obligations are paid in full. If any amount shall be paid to the Guarantor on account of such subrogation rights at any time when all of the Guarantor Obligations shall not have been paid in full, such amount shall be held by the Guarantor in trust for the Trustee and the Holders, segregated from other funds of the Guarantor, and shall, forthwith upon receipt by the Guarantor, be turned over to the Trustee in the exact form received by the Guarantor (duly indorsed by the Guarantor to the Trustee, if required), to be applied against the Guarantor Obligations.

ARTICLE III

Miscellaneous

SECTION 3.1 Notices. All notices and other communications to the Guarantor shall be given as provided in this Supplemental Indenture to the Guarantor, c/o Deluxe Corporation, pursuant to Section 11.2 of the Indenture, with a copy to the Company as provided in the Indenture for notices to the Company.

SECTION 3.2 Parties. Nothing expressed or mentioned herein is intended or shall be construed to give any Person, firm or corporation, other than the Holders and the Trustee, any legal or equitable right, remedy or claim under or in respect of this Supplemental Indenture or the Indenture or any provision herein or therein contained.

SECTION 3.3 Governing Law. This Supplemental Indenture shall be governed by, and construed in accordance with, the laws of the State of New York.

SECTION 3.4 Ratification of Indenture; Supplemental Indenture Part of Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Securities heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee makes no representation or

warranty as to the validity or sufficiency of this Supplemental Indenture.

SECTION 3.5 Counterparts. The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement.

SECTION 3.6 Headings. The headings of the Articles and the Sections in this Guarantee are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

SECTION 3.7 Trustee. The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture. The recitals and statements herein are deemed to be those of the Subsidiary Guarantors and not of the Trustee.

[Signature page follows.]

IN WITNESS WHEREOF, the parties hereto have caused the Indenture to be duly executed as of the date first above written.

ORANGESODA, INC.,

as a Subsidiary Guarantor

By: /s/ Jeff Johnson

Name: Jeff Johnson

Title: Assistant Treasurer

DELUXE CORPORATION

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

CUSTOM DIRECT, INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

CUSTOM DIRECT LLC,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

DELUXE BUSINESS OPERATIONS, INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

[Signature page 1 of 4 to Supplemental Indenture to 2007 Indenture]

DELUXE ENTERPRISE OPERATIONS, INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

DELUXE FINANCIAL SERVICES, INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

DELUXE MANUFACTURING OPERATIONS, INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

DELUXE SMALL BUSINESS SALES, INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

HOSPTOPIA.COM INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

[Signature page 2 of 4 to Supplemental Indenture to 2007 Indenture]

SAFEGUARD BUSINESS SYSTEMS, INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

SAFEGUARD HOLDINGS, INC.,

as a Subsidiary Guarantor

By: /s/ Terry D. Peterson

Name: Terry D. Peterson

Title: Vice President and Treasurer

[Signature page 3 of 4 to Supplemental Indenture to 2007 Indenture]

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

as Trustee

By: /s/ Linda Garcia

Name: Linda Garcia

Title: Vice President

[Signature page 4 of 4 to Supplemental Indenture to 2007 Indenture]

EX-12.1

Exhibit 12.1

Deluxe Corporation

Computation of Ratio of Earnings to Fixed Charges

	Six Months Ended June 30,		Year Ended December 31,
	2012		2011		2010		2009		2008		2007		2006
Earnings:
Income from continuing operations before income taxes	$	128,904	$	216,084	$	235,949	$	155,021	$	160,176	$	220,015	$	142,788
Interest expense (excluding capitalized interest)(1)	23,053		47,797		44,165		46,280		50,421		55,294		56,661
Portion of rent expense under long-term operating leases representative of an interest factor	2,159		3,215		3,438		2,716		3,147		2,900		3,526
Total earnings	$	154,116	$	267,096	$	283,552	$	204,017	$	213,744	$	278,209	$	202,975
Fixed charges:
Interest expense (including capitalized interest)(1)	$	23,053	$	47,797	$	44,165	$	46,280	$	50,421	$	55,294	$	57,051
Portion of rent expense under long-term operating leases representative of an interest factor	2,159		3,215		3,438		2,716		3,147		2,900		3,526
Total fixed charges	$	25,212	$	51,012	$	47,603	$	48,996	$	53,568	$	58,194	$	60,577
Ratio of earnings to fixed charges	6.1		5.2		6.0		4.2		4.0		4.8		3.4

⁽¹⁾ Does not include interest expense related to uncertain tax positions.

EX-31.1

Exhibit 31.1

CEO CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Lee Schram, Chief Executive Officer of Deluxe Corporation, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of Deluxe Corporation;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:     August 3, 2012	/s/ Lee Schram
	Lee Schram
	Chief Executive Officer

EX-31.2

Exhibit 31.2

CFO CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Terry D. Peterson, Chief Financial Officer of Deluxe Corporation, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of Deluxe Corporation;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:     August 3, 2012	/s/ Terry D. Peterson
	Terry D. Peterson
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CEO AND CFO CERTIFICATION OF PERIODIC REPORT

We, Lee Schram, Chief Executive Officer of Deluxe Corporation (the “Company”), and Terry D. Peterson, Chief Financial Officer of the Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1) the Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  August 3, 2012	/s/ Lee Schram
	Lee Schram
	Chief Executive Officer

/s/ Terry D. Peterson

Terry D. Peterson

Chief Financial Officer

XML

Supplemental balance sheet information (other) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Other non-current assets [Abstract]
Contract acquisition costs	$ 48,906	$ 50,411
Loans and notes receivable from distributors	14,314		11,148
Deferred advertising costs	14,043		15,599
Other	18,266		18,775
Other non-current assets	95,529		100,598
Contract acquisition costs [Roll Forward]
Balance, beginning of year	55,076	57,476
Additions	2,668	1,770
Amortization	(8,546)	(8,665)
Other	(292)	(170)
Balance, end of period	48,906	50,411
Contract acquisition payments	10,516	5,615
Accrued liabilities [Abstract]
Funds held for customers	41,284		43,829
Employee profit sharing/cash bonus	22,297		23,783
Customer rebates	20,122		20,969
Wages, including vacation	12,657		4,995
Interest	8,737		8,760
Contract acquisition costs due within one year	5,152		13,070
Restructuring due within one year (see Note 8)	3,766		5,946
Other	28,969		28,746
Accrued liabilities	142,984		150,098
Other non-current liabilities [Abstract]
Pension and postretirement benefit plans	36,458		48,859
Contract acquisition costs	7,305		7,455
Unrecognized tax benefits, including interest and penalties	6,750		7,570
Other	12,667		15,931
Other non-current liabilities	$ 63,180		$ 79,815

XML

Supplemental guarantor financial information (Details) (Senior notes due 2019 [Member], USD $) In Thousands, unless otherwise specified	1 Months Ended	3 Months Ended
	Mar. 31, 2011	Jun. 30, 2012
Senior notes due 2019 [Member]
Debt instruments [Line Items]
Debt issuance date	Mar. 15, 2011
Principal amount issued	$ 200,000
Debt maturity date		Mar. 15, 2019

XML

Pension and other postretirement benefits (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Postretirement benefit plan [Member]
Pension and other postretirement benefits [Line Items]
Interest cost	$ 1,478	$ 1,667	$ 2,956	$ 3,334
Expected return on plan assets	(1,950)	(1,963)	(3,901)	(3,926)
Amortization of prior service credit	(764)	(936)	(1,528)	(1,871)
Amortization of net actuarial losses	1,467	1,354	2,935	2,708
Net periodic benefit expense	231	122	462	245
Pension plan [Member]
Pension and other postretirement benefits [Line Items]
Interest cost	37	41	74	82
Expected return on plan assets	0	0	0	0
Amortization of prior service credit	0	0	0	0
Amortization of net actuarial losses	2	0	4	0
Net periodic benefit expense	$ 39	$ 41	$ 78	$ 82

XML

Supplemental guarantor financial information (Condensed Consolidating Balance Sheets) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Current Assets:
Cash and cash equivalents	$ 45,131	$ 28,687	$ 17,626	$ 17,383
Trade accounts receivable, net	69,283	69,023
Inventories and supplies	23,813	22,043
Deferred income taxes	6,809	7,216
Funds held for customers	42,000	44,394
Other current assets	34,047	21,212
Total current assets	221,083	192,575
Long-Term Investments	46,126	45,147
Property, Plant And Equipment, net	108,223	113,411
Assets Held For Sale	0	2,741
Intangibles, net	161,491	157,339
Goodwill	789,742	776,998
Deferred Income Taxes	0	0
Investments In Consolidated Subsidiaries	0	0
Intercompany (Payable) Receivable	0	0
Other Non-Current Assets	95,529	100,598
Total Assets	1,422,194	1,388,809	1,334,976
Current Liabilities:
Accounts payable	60,705	64,694
Accrued liabilities	142,984	150,098
Deferred income taxes	0
Long-term debt due within one year	85,296	85,575
Total current liabilities	288,985	300,367
Long-Term Debt	656,847	656,131
Deferred Income Taxes	54,265	49,807
Other Non-Current Liabilities	63,180	79,815
Total Shareholders' Equity	358,917	302,689
Total Liabilities And Shareholders' Equity	1,422,194	1,388,809
Deluxe Corporation [Member]
Current Assets:
Cash and cash equivalents	19,956	3,047	585	3,197
Trade accounts receivable, net	0	0
Inventories and supplies	0	0
Deferred income taxes	0	1,035
Funds held for customers	0	0
Other current assets	14,755	5,851
Total current assets	34,711	9,933
Long-Term Investments	37,063	36,338
Property, Plant And Equipment, net	0	0
Assets Held For Sale		0
Intangibles, net	0	0
Goodwill	0	0
Deferred Income Taxes	25,007	27,471
Investments In Consolidated Subsidiaries	1,401,308	1,307,149
Intercompany (Payable) Receivable	(380,835)	(316,876)
Other Non-Current Assets	12,177	11,758
Total Assets	1,129,431	1,075,773
Current Liabilities:
Accounts payable	11,656	13,401
Accrued liabilities	12,841	12,272
Deferred income taxes	541
Long-term debt due within one year	85,296	85,575
Total current liabilities	110,334	111,248
Long-Term Debt	656,847	656,131
Deferred Income Taxes	0	0
Other Non-Current Liabilities	3,333	5,705
Total Shareholders' Equity	358,917	302,689
Total Liabilities And Shareholders' Equity	1,129,431	1,075,773
Guarantor subsidiaries [Member]
Current Assets:
Cash and cash equivalents	5,064	1,522	1,208	683
Trade accounts receivable, net	57,005	57,463
Inventories and supplies	21,589	19,941
Deferred income taxes	6,592	5,430
Funds held for customers	0	0
Other current assets	14,104	10,469
Total current assets	104,354	94,825
Long-Term Investments	9,063	8,809
Property, Plant And Equipment, net	91,290	96,345
Assets Held For Sale		2,741
Intangibles, net	159,681	155,452
Goodwill	787,779	775,044
Deferred Income Taxes	0	0
Investments In Consolidated Subsidiaries	20,688	15,478
Intercompany (Payable) Receivable	420,384	360,789
Other Non-Current Assets	67,789	72,944
Total Assets	1,661,028	1,582,427
Current Liabilities:
Accounts payable	44,669	44,908
Accrued liabilities	81,947	86,001
Deferred income taxes	0
Long-term debt due within one year	0	0
Total current liabilities	126,616	130,909
Long-Term Debt	0	0
Deferred Income Taxes	76,085	74,133
Other Non-Current Liabilities	57,019	70,236
Total Shareholders' Equity	1,401,308	1,307,149
Total Liabilities And Shareholders' Equity	1,661,028	1,582,427
Non-guarantor subsidiaries [Member]
Current Assets:
Cash and cash equivalents	20,111	24,118	15,833	13,503
Trade accounts receivable, net	12,278	11,560
Inventories and supplies	2,224	2,102
Deferred income taxes	758	751
Funds held for customers	42,000	44,394
Other current assets	5,188	4,892
Total current assets	82,559	87,817
Long-Term Investments	0	0
Property, Plant And Equipment, net	16,933	17,066
Assets Held For Sale		0
Intangibles, net	1,810	1,887
Goodwill	1,963	1,954
Deferred Income Taxes	0	0
Investments In Consolidated Subsidiaries	0	0
Intercompany (Payable) Receivable	(39,549)	(43,913)
Other Non-Current Assets	15,563	15,896
Total Assets	79,279	80,707
Current Liabilities:
Accounts payable	4,380	6,385
Accrued liabilities	48,196	51,825
Deferred income taxes	0
Long-term debt due within one year	0	0
Total current liabilities	52,576	58,210
Long-Term Debt	0	0
Deferred Income Taxes	3,187	3,145
Other Non-Current Liabilities	2,828	3,874
Total Shareholders' Equity	20,688	15,478
Total Liabilities And Shareholders' Equity	79,279	80,707
Eliminations [Member]
Current Assets:
Cash and cash equivalents	0	0
Trade accounts receivable, net	0	0
Inventories and supplies	0	0
Deferred income taxes	(541)	0
Funds held for customers	0	0
Other current assets	0	0
Total current assets	(541)	0
Long-Term Investments	0	0
Property, Plant And Equipment, net	0	0
Assets Held For Sale		0
Intangibles, net	0	0
Goodwill	0	0
Deferred Income Taxes	(25,007)	(27,471)
Investments In Consolidated Subsidiaries	(1,421,996)	(1,322,627)
Intercompany (Payable) Receivable	0	0
Other Non-Current Assets	0	0
Total Assets	(1,447,544)	(1,350,098)
Current Liabilities:
Accounts payable	0	0
Accrued liabilities	0	0
Deferred income taxes	(541)
Long-term debt due within one year	0	0
Total current liabilities	(541)	0
Long-Term Debt	0	0
Deferred Income Taxes	(25,007)	(27,471)
Other Non-Current Liabilities	0	0
Total Shareholders' Equity	(1,421,996)	(1,322,627)
Total Liabilities And Shareholders' Equity	$ (1,447,544)	$ (1,350,098)

XML

Restructuring charges (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Net restructuring charges by component [Abstract]
Severance accruals	$ 1,044	$ 2,027	$ 3,036	$ 2,823
Severance reversals	(443)	(171)	(908)	(909)
Net restructuring accruals	601	1,856	2,128	1,914
Other costs	1,320	2,748	1,670	4,164
Net restructuring charges	1,921	4,604	3,798	6,078
Cost of goods sold	(77)	529	1,162	576
Operating expenses	1,998	4,075	2,636	5,502
Other restructuring charges disclosures [Abstract]
Number of employees included in severance accrual	50	70	195	90
Restructuring accruals, total	3,766		3,766		6,032
Restructuring accruals, accrued liabilities	3,766		3,766		5,946
Restructuring accruals, other non-current liabilities					$ 86
Number of employees that have not started to receive severance benefits	225		225

XML

Supplemental guarantor financial information (Tables)

6 Months Ended

Jun. 30, 2012

Supplemental guarantor financial information [Abstract]

Condensed Consolidating Balance Sheets

Deluxe Corporation

Condensed Consolidating Balance Sheet

	June 30, 2012
	Deluxe Corporation			Guarantor subsidiaries		Non-guarantor subsidiaries			Eliminations			Total
ASSETS
Current Assets:
Cash and cash equivalents	$	19,956		$	5,064	$	20,111		$	—		$	45,131
Trade accounts receivable, net	—			57,005		12,278			—			69,283
Inventories and supplies	—			21,589		2,224			—			23,813
Deferred income taxes	—			6,592		758			(541		)	6,809
Funds held for customers	—			—		42,000			—			42,000
Other current assets	14,755			14,104		5,188			—			34,047
Total current assets	34,711			104,354		82,559			(541		)	221,083
Long-Term Investments	37,063			9,063		—			—			46,126
Property, Plant And Equipment, net	—			91,290		16,933			—			108,223
Intangibles, net	—			159,681		1,810			—			161,491
Goodwill	—			787,779		1,963			—			789,742
Deferred Income Taxes	25,007			—		—			(25,007		)	—
Investments In Consolidated Subsidiaries	1,401,308			20,688		—			(1,421,996		)	—
Intercompany (Payable) Receivable	(380,835		)	420,384		(39,549		)	—			—
Other Non-Current Assets	12,177			67,789		15,563			—			95,529
Total Assets	$	1,129,431		$	1,661,028	$	79,279		$	(1,447,544	)	$	1,422,194
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	11,656		$	44,669	$	4,380		$	—		$	60,705
Accrued liabilities	12,841			81,947		48,196			—			142,984
Deferred income taxes	541			—		—			(541		)	—
Long-term debt due within one year	85,296			—		—			—			85,296
Total current liabilities	110,334			126,616		52,576			(541		)	288,985
Long-Term Debt	656,847			—		—			—			656,847
Deferred Income Taxes	—			76,085		3,187			(25,007		)	54,265
Other Non-Current Liabilities	3,333			57,019		2,828			—			63,180
Total Shareholders' Equity	358,917			1,401,308		20,688			(1,421,996		)	358,917
Total Liabilities And Shareholders' Equity	$	1,129,431		$	1,661,028	$	79,279		$	(1,447,544	)	$	1,422,194

Deluxe Corporation

Condensed Consolidating Balance Sheet

	December 31, 2011
	Deluxe Corporation			Guarantor subsidiaries		Non-guarantor subsidiaries			Eliminations			Total
ASSETS
Current Assets:
Cash and cash equivalents	$	3,047		$	1,522	$	24,118		$	—		$	28,687
Trade accounts receivable, net	—			57,463		11,560			—			69,023
Inventories and supplies	—			19,941		2,102			—			22,043
Deferred income taxes	1,035			5,430		751			—			7,216
Funds held for customers	—			—		44,394			—			44,394
Other current assets	5,851			10,469		4,892			—			21,212
Total current assets	9,933			94,825		87,817			—			192,575
Long-Term Investments	36,338			8,809		—			—			45,147
Property, Plant And Equipment, net	—			96,345		17,066			—			113,411
Assets Held For Sale	—			2,741		—			—			2,741
Intangibles, net	—			155,452		1,887			—			157,339
Goodwill	—			775,044		1,954			—			776,998
Deferred Income Taxes	27,471			—		—			(27,471		)	—
Investments In Consolidated Subsidiaries	1,307,149			15,478		—			(1,322,627		)	—
Intercompany (Payable) Receivable	(316,876		)	360,789		(43,913		)	—			—
Other Non-Current Assets	11,758			72,944		15,896			—			100,598
Total Assets	$	1,075,773		$	1,582,427	$	80,707		$	(1,350,098	)	$	1,388,809
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	13,401		$	44,908	$	6,385		$	—		$	64,694
Accrued liabilities	12,272			86,001		51,825			—			150,098
Long-term debt due within one year	85,575			—		—			—			85,575
Total current liabilities	111,248			130,909		58,210			—			300,367
Long-Term Debt	656,131			—		—			—			656,131
Deferred Income Taxes	—			74,133		3,145			(27,471		)	49,807
Other Non-Current Liabilities	5,705			70,236		3,874			—			79,815
Total Shareholders' Equity	302,689			1,307,149		15,478			(1,322,627		)	302,689
Total Liabilities And Shareholders' Equity	$	1,075,773		$	1,582,427	$	80,707		$	(1,350,098	)	$	1,388,809

Condensed Consolidating Statements of Comprehensive Income

Deluxe Corporation

Condensed Consolidating Statement of Comprehensive Income

	Quarter Ended June 30, 2012
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Eliminations			Total
Revenue	$	2,135		$	335,213		$	67,714		$	(34,048	)	$	371,014
Cost of goods sold	—			(118,791		)	(39,105		)	30,302			(127,594		)
Gross Profit	2,135			216,422			28,609			(3,746		)	243,420
Operating expenses	(998		)	(149,141		)	(23,451		)	3,746			(169,844		)
Operating Income	1,137			67,281			5,158			—			73,576
Interest expense	(11,339		)	(3,345		)	(407		)	3,735			(11,356		)
Other income	3,337			569			146			(3,735		)	317
(Loss) Income Before Income Taxes	(6,865		)	64,505			4,897			—			62,537
Income tax benefit (provision)	3,884			(21,218		)	(2,941		)	—			(20,275		)
(Loss) Income Before Equity In Earnings Of Consolidated Subsidiaries	(2,981		)	43,287			1,956			—			42,262
Equity in earnings of consolidated subsidiaries	45,243			1,956			—			(47,199		)	—
Net Income	$	42,262		$	45,243		$	1,956		$	(47,199	)	$	42,262
Comprehensive Income	$	42,183		$	44,879		$	1,185		$	(46,064	)	$	42,183

Deluxe Corporation

Condensed Consolidating Statement of Comprehensive Income

	Quarter Ended June 30, 2011
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Eliminations			Total
Revenue	$	2,128		$	312,009		$	67,281		$	(35,144	)	$	346,274
Cost of goods sold	—			(111,685		)	(39,835		)	30,833			(120,687		)
Gross Profit	2,128			200,324			27,446			(4,311		)	225,587
Operating expenses	(2,333		)	(141,411		)	(22,168		)	4,311			(161,601		)
Operating (Loss) Income	(205		)	58,913			5,278			—			63,986
Interest expense	(12,006		)	(3,079		)	(431		)	3,462			(12,054		)
Other income (expense)	3,057			128			208			(3,462		)	(69		)
(Loss) Income Before Income Taxes	(9,154		)	55,962			5,055			—			51,863
Income tax benefit (provision)	4,209			(20,094		)	(505		)	—			(16,390		)
(Loss) Income Before Equity In Earnings Of Consolidated Subsidiaries	(4,945		)	35,868			4,550			—			35,473
Equity in earnings of consolidated subsidiaries	40,418			4,550			—			(44,968		)	—
Net Income	$	35,473		$	40,418		$	4,550		$	(44,968	)	$	35,473
Comprehensive Income	$	36,365		$	41,029		$	4,917		$	(45,946	)	$	36,365

Deluxe Corporation

Condensed Consolidating Statement of Comprehensive Income

	Six Months Ended June 30, 2012
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Eliminations			Total
Revenue	$	4,233		$	677,015		$	139,742		$	(71,994	)	$	748,996
Cost of goods sold	—			(237,151		)	(82,638		)	64,707			(255,082		)
Gross Profit	4,233			439,864			57,104			(7,287		)	493,914
Operating expenses	(3,370		)	(298,846		)	(47,384		)	7,287			(342,313		)
Operating Income	863			141,018			9,720			—			151,601
Interest expense	(23,006		)	(5,607		)	(693		)	6,253			(23,053		)
Other income	5,700			315			594			(6,253		)	356
(Loss) Income Before Income Taxes	(16,443		)	135,726			9,621			—			128,904
Income tax benefit (provision)	8,642			(46,778		)	(4,427		)	—			(42,563		)
(Loss) Income Before Equity In Earnings Of Consolidated Subsidiaries	(7,801		)	88,948			5,194			—			86,341
Equity in earnings of consolidated subsidiaries	94,142			5,194			—			(99,336		)	—
Net Income	$	86,341		$	94,142		$	5,194		$	(99,336	)	$	86,341
Comprehensive Income	$	87,793		$	95,026		$	5,263		$	(100,289	)	$	87,793

Deluxe Corporation

Condensed Consolidating Statement of Comprehensive Income

	Six Months ended June 30, 2011
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Eliminations			Total
Revenue	$	4,256		$	626,710		$	137,622		$	(72,562	)	$	696,026
Cost of goods sold	—			(223,129		)	(81,371		)	63,651			(240,849		)
Gross Profit	4,256			403,581			56,251			(8,911		)	455,177
Operating expenses	(6,785		)	(281,183		)	(44,679		)	8,911			(323,736		)
Operating (Loss) Income	(2,529		)	122,398			11,572			—			131,441
Loss on early debt extinguishment	(6,995		)	—			—			—			(6,995		)
Interest expense	(24,011		)	(5,256		)	(725		)	5,900			(24,092		)
Other income	4,821			587			578			(5,900		)	86
(Loss) Income Before Income Taxes	(28,714		)	117,729			11,425			—			100,440
Income tax benefit (provision)	12,311			(42,273		)	(2,449		)	—			(32,411		)
(Loss) Income Before Equity In Earnings Of Consolidated Subsidiaries	(16,403		)	75,456			8,976			—			68,029
Equity in earnings of consolidated subsidiaries	84,432			8,976			—			(93,408		)	—
Net Income	$	68,029		$	84,432		$	8,976		$	(93,408	)	$	68,029
Comprehensive Income	$	70,480		$	85,842		$	9,901		$	(95,743	)	$	70,480

Condensed Consolidating Statements of Cash Flows

Deluxe Corporation

Condensed Consolidating Statement of Cash Flows

	Six Months Ended June 30, 2012
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Total
Net Cash (Used) Provided By Operating Activities	$	(13,374	)	$	110,323		$	2,960		$	99,909
Cash Flows From Investing Activities:
Purchases of capital assets	—			(16,192		)	(1,142		)	(17,334		)
Payments for acquisitions, net of cash acquired	—			(26,634		)	(1,825		)	(28,459		)
Loans to distributors	—			(3,090		)	(60		)	(3,150		)
Other	196			2,659			356			3,211
Net cash provided (used) by investing activities	196			(43,257		)	(2,671		)	(45,732		)
Cash Flows From Financing Activities:
Payments for debt issue costs	(1,163		)	—			—			(1,163		)
Change in book overdrafts	(2,492		)	(160		)	—			(2,652		)
Proceeds from issuing shares under employee plans	2,873			—			—			2,873
Excess tax benefit from share-based employee awards	443			—			—			443
Payments for common shares repurchased	(11,999		)	—			—			(11,999		)
Cash dividends paid to shareholders	(25,423		)	—			—			(25,423		)
Advances from (to) consolidated subsidiaries	67,848			(63,364		)	(4,484		)	—
Net cash provided (used) by financing activities	30,087			(63,524		)	(4,484		)	(37,921		)
Effect Of Exchange Rate Change On Cash	—			—			188			188
Net Change In Cash And Cash Equivalents	16,909			3,542			(4,007		)	16,444
Cash And Cash Equivalents: Beginning Of Period	3,047			1,522			24,118			28,687
End of Period	$	19,956		$	5,064		$	20,111		$	45,131

Deluxe Corporation

Condensed Consolidating Statement of Cash Flows

	Six Months ended June 30, 2011
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Total
Net Cash (Used) Provided By Operating Activities	$	(851	)	$	101,479		$	3,554		$	104,182
Cash Flows From Investing Activities:
Purchases of capital assets	—			(18,791		)	(505		)	(19,296		)
Payments for acquisitions, net of cash acquired	—			(35,000		)	(1,754		)	(36,754		)
Other	(170		)	683			227			740
Net cash used by investing activities	(170		)	(53,108		)	(2,032		)	(55,310		)
Cash Flows From Financing Activities:
Net proceeds from short-term debt	6,000			—			—			6,000
Payments on long-term debt, including costs of debt reacquisition	(215,030		)	—			—			(215,030		)
Proceeds from issuing long-term debt	200,000			—			—			200,000
Payments for debt issue costs	(3,429		)	—			—			(3,429		)
Change in book overdrafts	(765		)	(140		)	—			(905		)
Proceeds from issuing shares under employee plans	6,514			—			—			6,514
Excess tax benefit from share-based employee awards	1,313			—			—			1,313
Payments for common shares repurchased	(17,986		)	—			—			(17,986		)
Cash dividends paid to shareholders	(25,663		)	—			—			(25,663		)
Advances from (to) consolidated subsidiaries	47,455			(47,706		)	251			—
Net cash (used) provided by financing activities	(1,591		)	(47,846		)	251			(49,186		)
Effect Of Exchange Rate Change On Cash	—			—			557			557
Net Change In Cash And Cash Equivalents	(2,612		)	525			2,330			243
Cash And Cash Equivalents: Beginning Of Period	3,197			683			13,503			17,383
End of Period	$	585		$	1,208		$	15,833		$	17,626

XML

Supplemental guarantor financial information (Condensed Consolidating Statements of Cash Flows) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Condensed Consolidating Statements of Cash Flows [Abstract}
Net Cash (Used) Provided By Operating Activities	$ 99,909	$ 104,182
Cash Flows From Investing Activities:
Purchases of capital assets	(17,334)	(19,296)
Payments for acquisitions, net of cash acquired	(28,459)	(36,754)
Loans to distributors	(3,150)	0
Other	3,211	740
Net cash provided (used) by investing activities	(45,732)	(55,310)
Cash Flows From Financing Activities:
Net proceeds from short-term debt	0	6,000
Payments on long-term debt, including costs of debt reacquisition	0	(215,030)
Proceeds from issuing long-term debt	0	200,000
Payments for debt issue costs	(1,163)	(3,429)
Change in book overdrafts	(2,652)	(905)
Proceeds from issuing shares under employee plans	2,873	6,514
Excess tax benefit from share-based employee awards	443	1,313
Payments for common shares repurchased	(11,999)	(17,986)
Cash dividends paid to shareholders	(25,423)	(25,663)
Advances from (to) consolidated subsidiaries	0	0
Net cash provided (used) by financing activities	(37,921)	(49,186)
Effect Of Exchange Rate Change On Cash	188	557
Net Change In Cash And Cash Equivalents	16,444	243
Cash And Cash Equivalents:
Beginning Of Period	28,687	17,383
End Of Period	45,131	17,626
Deluxe Corporation [Member]
Condensed Consolidating Statements of Cash Flows [Abstract}
Net Cash (Used) Provided By Operating Activities	(13,374)	(851)
Cash Flows From Investing Activities:
Purchases of capital assets	0	0
Payments for acquisitions, net of cash acquired	0	0
Loans to distributors	0
Other	196	(170)
Net cash provided (used) by investing activities	196	(170)
Cash Flows From Financing Activities:
Net proceeds from short-term debt		6,000
Payments on long-term debt, including costs of debt reacquisition		(215,030)
Proceeds from issuing long-term debt		200,000
Payments for debt issue costs	(1,163)	(3,429)
Change in book overdrafts	(2,492)	(765)
Proceeds from issuing shares under employee plans	2,873	6,514
Excess tax benefit from share-based employee awards	443	1,313
Payments for common shares repurchased	11,999	(17,986)
Cash dividends paid to shareholders	(25,423)	(25,663)
Advances from (to) consolidated subsidiaries	67,848	47,455
Net cash provided (used) by financing activities	30,087	(1,591)
Effect Of Exchange Rate Change On Cash	0	0
Net Change In Cash And Cash Equivalents	16,909	(2,612)
Cash And Cash Equivalents:
Beginning Of Period	3,047	3,197
End Of Period	19,956	585
Guarantor subsidiaries [Member]
Condensed Consolidating Statements of Cash Flows [Abstract}
Net Cash (Used) Provided By Operating Activities	110,323	101,479
Cash Flows From Investing Activities:
Purchases of capital assets	(16,192)	(18,791)
Payments for acquisitions, net of cash acquired	(26,634)	(35,000)
Loans to distributors	(3,090)
Other	2,659	683
Net cash provided (used) by investing activities	(43,257)	(53,108)
Cash Flows From Financing Activities:
Net proceeds from short-term debt		0
Payments on long-term debt, including costs of debt reacquisition		0
Proceeds from issuing long-term debt		0
Payments for debt issue costs	0	0
Change in book overdrafts	(160)	(140)
Proceeds from issuing shares under employee plans	0	0
Excess tax benefit from share-based employee awards	0	0
Payments for common shares repurchased	0	0
Cash dividends paid to shareholders	0	0
Advances from (to) consolidated subsidiaries	(63,364)	(47,706)
Net cash provided (used) by financing activities	(63,524)	(47,846)
Effect Of Exchange Rate Change On Cash	0	0
Net Change In Cash And Cash Equivalents	3,542	525
Cash And Cash Equivalents:
Beginning Of Period	1,522	683
End Of Period	5,064	1,208
Non-guarantor subsidiaries [Member]
Condensed Consolidating Statements of Cash Flows [Abstract}
Net Cash (Used) Provided By Operating Activities	2,960	3,554
Cash Flows From Investing Activities:
Purchases of capital assets	(1,142)	(505)
Payments for acquisitions, net of cash acquired	(1,825)	(1,754)
Loans to distributors	(60)
Other	356	227
Net cash provided (used) by investing activities	(2,671)	(2,032)
Cash Flows From Financing Activities:
Net proceeds from short-term debt		0
Payments on long-term debt, including costs of debt reacquisition		0
Proceeds from issuing long-term debt		0
Payments for debt issue costs	0	0
Change in book overdrafts	0	0
Proceeds from issuing shares under employee plans	0	0
Excess tax benefit from share-based employee awards	0	0
Payments for common shares repurchased	0	0
Cash dividends paid to shareholders	0	0
Advances from (to) consolidated subsidiaries	(4,484)	251
Net cash provided (used) by financing activities	(4,484)	251
Effect Of Exchange Rate Change On Cash	188	557
Net Change In Cash And Cash Equivalents	(4,007)	2,330
Cash And Cash Equivalents:
Beginning Of Period	24,118	13,503
End Of Period	$ 20,111	$ 15,833

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Earnings per share (Tables)

6 Months Ended

Jun. 30, 2012

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. 

	Quarter Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Earnings per share – basic:
Net income	$	42,262		$	35,473		$	86,341		$	68,029
Income allocated to participating securities	(287		)	(211		)	(575		)	(325		)
Income available to common shareholders	$	41,975		$	35,262		$	85,766		$	67,704
Weighted-average shares outstanding	50,737			51,175			50,796			51,221
Earnings per share – basic	$	0.83		$	0.69		$	1.69		$	1.32
Earnings per share – diluted:
Net income	$	42,262		$	35,473		$	86,341		$	68,029
Income allocated to participating securities	(286		)	(98		)	(573		)	(160		)
Re-measurement of share-based awards classified as liabilities	23			(23		)	35			13
Income available to common shareholders	$	41,999		$	35,352		$	85,803		$	67,882
Weighted-average shares outstanding	50,737			51,175			50,796			51,221
Dilutive impact of potential common shares	249			513			273			489
Weighted-average shares and potential common shares outstanding	50,986			51,688			51,069			51,710
Earnings per share – diluted	$	0.82		$	0.68		$	1.68		$	1.31
Antidilutive options excluded from calculation	2,010			1,449			2,010			1,449

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Debt (credit facility) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Dec. 31, 2011
Line of Credit Facility [Abstract]
Credit facility, date of expiration	Feb. 17, 2017		Mar. 31, 2013
Commitment fee, minimum (in hundredths)	0.20%
Commitment fee, maximum (in hundredths)	0.45%
Daily average amount outstanding		$ 0	$ 21,655
Weighted-average interest rate (iin hundredths)		0.00%	3.03%
Credit facility commitment	200,000	200,000
Outstanding letters of credit	(8,535)	(8,535)
Net available for borrowing at end of period	$ 191,465	$ 191,465
Ratio of EBITDA to interest expense	two to one

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Derivative financial instruments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2011	Jun. 30, 2012	Dec. 31, 2011
Derivative financial instruments [Line Items]
Notional amount		$ 282,847	$ 282,847
Fair value of interest rate swaps		5,103	4,539
Increase in debt due to fair value adjustment		3,949	3,568
Fair value hedge related to long-term debt due in 2012 [Member]
Derivative financial instruments [Line Items]
Notional amount		84,847	84,847
Fair value of interest rate swaps		913	1,309
Increase in debt due to fair value adjustment		474	780
Cash received on settlement of a portion of interest rate swaps	2,548
Fair value adjustment to hedged debt recognized in earnings at hedge termination	3,094
Accumulated fair value adjustment to hedged debt deferred at hedge termination and recorded as a decrease to interest expense over the term of the remaining debt	1,355
Fair value hedge related to long-term debt due in 2014 [Member]
Derivative financial instruments [Line Items]
Notional amount		198,000	198,000
Fair value of interest rate swaps		4,190	3,230
Increase in debt due to fair value adjustment		$ 3,475	$ 2,788

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Supplemental balance sheet information (intangibles) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Balance Sheet Related Disclosures [Abstract]
Amortization of intangibles	$ 11,315	$ 13,515	$ 23,304	$ 28,099
Intangibles [Line Items]
Gross carrying amount	612,963		612,963		590,674
Accumulated amortization	(451,472)		(451,472)		(433,335)
Net carrying amount	161,491		161,491		157,339
Estimated future amortization expense [Abstract]
Remainder of 2012	21,415		21,415
2013	34,218		34,218
2014	22,156		22,156
2015	10,906		10,906
2016	7,728		7,728
Indefinite-lived intangibles [Member] | Trade names [Member]
Intangibles [Line Items]
Gross carrying amount	19,100		19,100		19,100
Net carrying amount	19,100		19,100		19,100
Amortizable intangibles [Member]
Intangibles [Line Items]
Gross carrying amount	593,863		593,863		571,574
Accumulated amortization	(451,472)		(451,472)		(433,335)
Net carrying amount	142,391		142,391		138,239
Amortizable intangibles [Member] | Internal-use software [Member]
Intangibles [Line Items]
Gross carrying amount	427,030		427,030		410,905
Accumulated amortization	(361,214)		(361,214)		(345,145)
Net carrying amount	65,816		65,816		65,760
Amortizable intangibles [Member] | Customer lists/relationships [Member]
Intangibles [Line Items]
Gross carrying amount	58,872		58,872		52,542
Accumulated amortization	(25,873)		(25,873)		(26,059)
Net carrying amount	32,999		32,999		26,483
Amortizable intangibles [Member] | Distributor contracts [Member]
Intangibles [Line Items]
Gross carrying amount	30,900		30,900		30,900
Accumulated amortization	(29,098)		(29,098)		(28,198)
Net carrying amount	1,802		1,802		2,702
Amortizable intangibles [Member] | Trade names [Member]
Intangibles [Line Items]
Gross carrying amount	68,561		68,561		67,661
Accumulated amortization	(28,017)		(28,017)		(25,958)
Net carrying amount	40,544		40,544		41,703
Amortizable intangibles [Member] | Other [Member]
Intangibles [Line Items]
Gross carrying amount	8,500		8,500		9,566
Accumulated amortization	(7,270)		(7,270)		(7,975)
Net carrying amount	$ 1,230		$ 1,230		$ 1,591

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Shareholders' equity (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Shares outstanding [Roll Forward]
Common shares, beginning of year	50,826
Issued	249
Repurchased	(509)
Retired	(25)
Common shares, end of period	50,541
Share repurchase program [Abstract]
Common shares authorized for repurchase (in shares)	10,000
Common shares that remain available for repurchase (in shares)	4,748
Accumulated other comprehensive loss, net of tax [Line Items]
Accumulated other comprehensive loss, net of tax, beginning of year	$ (59,401)
Current period other comprehensive income (loss)	1,452
Accumulated other comprehensive loss, net of tax, end of period	(57,949)
Pension and postretirement benefit plans, net of tax [Member]
Accumulated other comprehensive loss, net of tax [Line Items]
Accumulated other comprehensive loss, net of tax, beginning of year	(62,278)
Current period other comprehensive income (loss)	878
Accumulated other comprehensive loss, net of tax, end of period	(61,400)
Loss on derivatives, net of tax [Member]
Accumulated other comprehensive loss, net of tax [Line Items]
Accumulated other comprehensive loss, net of tax, beginning of year	(2,931)
Current period other comprehensive income (loss)	557
Accumulated other comprehensive loss, net of tax, end of period	(2,374)
Net unrealized gain on marketable securities, net of tax [Member]
Accumulated other comprehensive loss, net of tax [Line Items]
Accumulated other comprehensive loss, net of tax, beginning of year	178
Current period other comprehensive income (loss)	(11)
Accumulated other comprehensive loss, net of tax, end of period	167
Currency translation adjustment [Member]
Accumulated other comprehensive loss, net of tax [Line Items]
Accumulated other comprehensive loss, net of tax, beginning of year	5,630
Current period other comprehensive income (loss)	28
Accumulated other comprehensive loss, net of tax, end of period	$ 5,658

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Restructuring charges (restructuring accruals by year and by segment) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended	42 Months Ended	6 Months Ended	42 Months Ended	6 Months Ended	30 Months Ended	6 Months Ended	18 Months Ended	6 Months Ended		42 Months Ended	6 Months Ended	42 Months Ended	6 Months Ended	42 Months Ended	6 Months Ended	42 Months Ended	6 Months Ended	42 Months Ended	6 Months Ended	42 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2012 2009 initiatives [Member]	Jun. 30, 2012 2009 initiatives [Member]	Jun. 30, 2012 2010 initiatives [Member]	Jun. 30, 2012 2010 initiatives [Member]	Jun. 30, 2012 2011 initiatives [Member]	Jun. 30, 2012 2011 initiatives [Member]	Jun. 30, 2012 2012 initiatives [Member]	Jun. 30, 2012 Employee severance benefits [Member] Small Business Services [Member]	Jun. 30, 2012 Employee severance benefits [Member] Small Business Services [Member]	Jun. 30, 2012 Employee severance benefits [Member] Financial Services [Member]	Jun. 30, 2012 Employee severance benefits [Member] Financial Services [Member]	Jun. 30, 2012 Employee severance benefits [Member] Direct Checks [Member]	Jun. 30, 2012 Employee severance benefits [Member] Direct Checks [Member]	Jun. 30, 2012 Employee severance benefits [Member] Corporate [Member]	Jun. 30, 2012 Employee severance benefits [Member] Corporate [Member]	Jun. 30, 2012 Operating lease obligations [Member] Small Business Services [Member]	Jun. 30, 2012 Operating lease obligations [Member] Small Business Services [Member]	Jun. 30, 2012 Operating lease obligations [Member] Direct Checks [Member]	Jun. 30, 2012 Operating lease obligations [Member] Direct Checks [Member]
Restructuring accruals [Line Items]
Balance, beginning of year	$ 6,032		$ 184		$ 781		$ 5,067		$ 0	$ 887		$ 1,397		$ 744		$ 2,647		$ 69		$ 288
Restructuring charges	3,036	32,569	11	11,035	9	9,724	262	9,056	2,754	891	9,888	166	6,000	162	3,445	1,817	12,363	0	364	0	509
Restructuring reversals	(908)	(4,511)	0	(1,670)	(189)	(1,511)	(672)	(1,283)	(47)	(72)	(1,621)	(124)	(839)	(75)	(267)	(637)	(1,784)	0	0	0	0
Inter-segment transfer	0	0								184	309	(184)	50	(40)	(38)	40	(321)	0	0	0	0
Payments	(4,394)	(24,292)	(157)	(9,327)	(373)	(7,985)	(3,082)	(6,198)	(782)	(1,466)	(8,152)	(979)	(4,935)	(7)	(2,356)	(1,774)	(8,165)	(66)	(361)	(102)	(323)
Balance, end of period	$ 3,766	$ 3,766	$ 38	$ 38	$ 228	$ 228	$ 1,575	$ 1,575	$ 1,925	$ 424	$ 424	$ 276	$ 276	$ 784	$ 784	$ 2,093	$ 2,093	$ 3	$ 3	$ 186	$ 186

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New accounting pronouncements

6 Months Ended

Jun. 30, 2012

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New accounting pronouncements

New accounting pronouncements

On January 1, 2012, we adopted Accounting Standards Update (ASU) No. 2011-05, Presentation of ComprehensiveIncome. This standard eliminates the option to report other comprehensive income and its components in the statement of shareholders' equity. Also effective January 1, 2012, we adopted ASU No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. This standard temporarily defers a provision included in ASU No. 2011-05 which requires that reclassification adjustments from other comprehensive income to net income be presented by income statement line item. Our presentation of comprehensive income in this quarterly report on Form 10-Q complies with these accounting standards.

On January 1, 2012, we adopted ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S GAAP and IFRSs. The new guidance changes some fair value measurement principles and disclosure requirements. The changes in fair value measurement principles relate primarily to financial assets and did not affect the fair value measurements presented in this report on Form 10-Q. The fair value disclosures required by the new standard are presented in Note 7: Fair value measurements.

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Fair value measurements (acquisitions) (Details) (OrangeSoda, Inc. [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jun. 30, 2012
Customer relationships [Member]
Acquired intangible assets [Line Items]
Acquired intangible asset amount	$ 10,200
Acquired intangible asset useful life	9 years
Internal-use software [Member]
Acquired intangible assets [Line Items]
Acquired intangible asset amount	3,300
Acquired intangible asset useful life	5 years
Trade name [Member]
Acquired intangible assets [Line Items]
Acquired intangible asset amount	$ 900
Acquired intangible asset useful life	5 years

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Pension and other postretirement benefits (Tables)

6 Months Ended

Jun. 30, 2012

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Components of net periodic benefit expense

Pension and postretirement benefit expense for the quarters ended June 30, 2012 and 2011 consisted of the following components:

	Postretirement benefit plan						Pension plan
	2012			2011			2012		2011
Interest cost	$	1,478		$	1,667		$	37	$	41
Expected return on plan assets	(1,950		)	(1,963		)	—		—
Amortization of prior service credit	(764		)	(936		)	—		—
Amortization of net actuarial losses	1,467			1,354			2		—
Net periodic benefit expense	$	231		$	122		$	39	$	41

Pension and postretirement benefit expense for the six months ended June 30, 2012 and 2011 consisted of the following components:

	Postretirement benefit plan						Pension plan
	2012			2011			2012		2011
Interest cost	$	2,956		$	3,334		$	74	$	82
Expected return on plan assets	(3,901		)	(3,926		)	—		—
Amortization of prior service credit	(1,528		)	(1,871		)	—		—
Amortization of net actuarial losses	2,935			2,708			4		—
Net periodic benefit expense	$	462		$	245		$	78	$	82

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Restructuring charges (Tables)

6 Months Ended

Jun. 30, 2012

Restructuring and Related Activities [Abstract]

Components of net restructuring charges

Net restructuring charges for each period consisted of the following components:

	Quarter Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Severance accruals	$	1,044		$	2,027		$	3,036		$	2,823
Severance reversals	(443		)	(171		)	(908		)	(909		)
Net restructuring accruals	601			1,856			2,128			1,914
Other costs	1,320			2,748			1,670			4,164
Net restructuring charges	$	1,921		$	4,604		$	3,798		$	6,078

The net restructuring charges are reflected in the consolidated statements of comprehensive income as follows:

	Quarter Ended June 30,					Six Months Ended June 30,
	2012			2011		2012		2011
Cost of goods sold	$	(77	)	$	529	$	1,162	$	576
Operating expenses	1,998			4,075		2,636		5,502
Net restructuring charges	$	1,921		$	4,604	$	3,798	$	6,078

Restructuring accruals, initiatives summarized by year

As of June 30, 2012, accruals for our restructuring initiatives, summarized by year, were as follows:

	2009 initiatives			2010 initiatives			2011 initiatives			2012  initiatives			Total
Balance, December 31, 2011	$	184		$	781		$	5,067		$	—		$	6,032
Restructuring charges	11			9			262			2,754			3,036
Restructuring reversals	—			(189		)	(672		)	(47		)	(908		)
Payments	(157		)	(373		)	(3,082		)	(782		)	(4,394		)
Balance, June 30, 2012	$	38		$	228		$	1,575		$	1,925		$	3,766
Cumulative amounts:
Restructuring charges	$	11,035		$	9,724		$	9,056		$	2,754		$	32,569
Restructuring reversals	(1,670		)	(1,511		)	(1,283		)	(47		)	(4,511		)
Payments	(9,327		)	(7,985		)	(6,198		)	(782		)	(24,292		)
Balance, June 30, 2012	$	38		$	228		$	1,575		$	1,925		$	3,766

Restructuring accruals, by segment

As of June 30, 2012, the components of our restructuring accruals, by segment, were as follows:

	Employee severance benefits												Operating lease obligations
	Small Business Services			Financial Services			Direct Checks			Corporate			Small Business Services			Direct Checks			Total
Balance, December 31, 2011	$	887		$	1,397		$	744		$	2,647		$	69		$	288		$	6,032
Restructuring charges	891			166			162			1,817			—			—			3,036
Restructuring reversals	(72		)	(124		)	(75		)	(637		)	—			—			(908		)
Inter-segment transfer	184			(184		)	(40		)	40			—			—			—
Payments	(1,466		)	(979		)	(7		)	(1,774		)	(66		)	(102		)	(4,394		)
Balance, June 30, 2012	$	424		$	276		$	784		$	2,093		$	3		$	186		$	3,766
Cumulative amounts(1):
Restructuring charges	$	9,888		$	6,000		$	3,445		$	12,363		$	364		$	509		$	32,569
Restructuring reversals	(1,621		)	(839		)	(267		)	(1,784		)	—			—			(4,511		)
Inter-segment transfer	309			50			(38		)	(321		)	—			—			—
Payments	(8,152		)	(4,935		)	(2,356		)	(8,165		)	(361		)	(323		)	(24,292		)
Balance, June 30, 2012	$	424		$	276		$	784		$	2,093		$	3		$	186		$	3,766

⁽¹⁾ Includes accruals related to our cost reduction initiatives for 2009 through 2012.

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Supplemental guarantor financial information (Condensed Consolidating Statements of Comprehensive Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Condensed Consolidating Statements of Comprehensive Income [Abstract]
Revenue	$ 371,014	$ 346,274	$ 748,996	$ 696,026
Cost of goods sold	(127,594)	(120,687)	(255,082)	(240,849)
Gross Profit	243,420	225,587	493,914	455,177
Operating expenses	(169,844)	(161,601)	(342,313)	(323,736)
Operating (Loss) Income	73,576	63,986	151,601	131,441
Loss on early debt extinguishment	0	0	0	(6,995)
Interest expense	(11,356)	(12,054)	(23,053)	(24,092)
Other income	317	(69)	356	86
(Loss) Income Before Income Taxes	62,537	51,863	128,904	100,440
Income tax benefit (provision)	(20,275)	(16,390)	(42,563)	(32,411)
(Loss) Income Before Equity In Earnings Of Consolidated Subsidiaries	42,262	35,473	86,341	68,029
Equity In earnings of consolidated subsidiaries	0	0	0	0
Net Income	42,262	35,473	86,341	68,029
Comprehensive Income	42,183	36,365	87,793	70,480
Deluxe Corporation [Member]
Condensed Consolidating Statements of Comprehensive Income [Abstract]
Revenue	2,135	2,128	4,233	4,256
Cost of goods sold	0	0	0	0
Gross Profit	2,135	2,128	4,233	4,256
Operating expenses	(998)	(2,333)	(3,370)	(6,785)
Operating (Loss) Income	1,137	(205)	863	(2,529)
Loss on early debt extinguishment				(6,995)
Interest expense	(11,339)	(12,006)	(23,006)	(24,011)
Other income	3,337	3,057	5,700	4,821
(Loss) Income Before Income Taxes	(6,865)	(9,154)	(16,443)	(28,714)
Income tax benefit (provision)	3,884	4,209	8,642	12,311
(Loss) Income Before Equity In Earnings Of Consolidated Subsidiaries	(2,981)	(4,945)	(7,801)	(16,403)
Equity In earnings of consolidated subsidiaries	45,243	40,418	94,142	84,432
Net Income	42,262	35,473	86,341	68,029
Comprehensive Income	42,183	36,365	87,793	70,480
Guarantor subsidiaries [Member]
Condensed Consolidating Statements of Comprehensive Income [Abstract]
Revenue	335,213	312,009	677,015	626,710
Cost of goods sold	(118,791)	(111,685)	(237,151)	(223,129)
Gross Profit	216,422	200,324	439,864	403,581
Operating expenses	(149,141)	(141,411)	(298,846)	(281,183)
Operating (Loss) Income	67,281	58,913	141,018	122,398
Loss on early debt extinguishment				0
Interest expense	(3,345)	(3,079)	(5,607)	(5,256)
Other income	569	128	315	587
(Loss) Income Before Income Taxes	64,505	55,962	135,726	117,729
Income tax benefit (provision)	(21,218)	(20,094)	(46,778)	(42,273)
(Loss) Income Before Equity In Earnings Of Consolidated Subsidiaries	43,287	35,868	88,948	75,456
Equity In earnings of consolidated subsidiaries	1,956	4,550	5,194	8,976
Net Income	45,243	40,418	94,142	84,432
Comprehensive Income	44,879	41,029	95,026	85,842
Non-guarantor subsidiaries [Member]
Condensed Consolidating Statements of Comprehensive Income [Abstract]
Revenue	67,714	67,281	139,742	137,622
Cost of goods sold	(39,105)	(39,835)	(82,638)	(81,371)
Gross Profit	28,609	27,446	57,104	56,251
Operating expenses	(23,451)	(22,168)	(47,384)	(44,679)
Operating (Loss) Income	5,158	5,278	9,720	11,572
Loss on early debt extinguishment				0
Interest expense	(407)	(431)	(693)	(725)
Other income	146	208	594	578
(Loss) Income Before Income Taxes	4,897	5,055	9,621	11,425
Income tax benefit (provision)	(2,941)	(505)	(4,427)	(2,449)
(Loss) Income Before Equity In Earnings Of Consolidated Subsidiaries	1,956	4,550	5,194	8,976
Equity In earnings of consolidated subsidiaries	0	0	0	0
Net Income	1,956	4,550	5,194	8,976
Comprehensive Income	1,185	4,917	5,263	9,901
Eliminations [Member]
Condensed Consolidating Statements of Comprehensive Income [Abstract]
Revenue	(34,048)	(35,144)	(71,994)	(72,562)
Cost of goods sold	30,302	30,833	64,707	63,651
Gross Profit	(3,746)	(4,311)	(7,287)	(8,911)
Operating expenses	3,746	4,311	7,287	8,911
Operating (Loss) Income	0	0	0	0
Loss on early debt extinguishment				0
Interest expense	3,735	3,462	6,253	5,900
Other income	(3,735)	(3,462)	(6,253)	(5,900)
(Loss) Income Before Income Taxes	0	0	0	0
Income tax benefit (provision)	0	0	0	0
(Loss) Income Before Equity In Earnings Of Consolidated Subsidiaries	0	0	0	0
Equity In earnings of consolidated subsidiaries	(47,199)	(44,968)	(99,336)	(93,408)
Net Income	(47,199)	(44,968)	(99,336)	(93,408)
Comprehensive Income	$ (46,064)	$ (45,946)	$ (100,289)	$ (95,743)

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Fair value measurements (recurring fair value measurements ) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Fair Value Disclosures [Abstract]
Net unrealized (loss) gain on investment in mutual funds	$ (105)	$ 63	$ 6	$ 243
Fair value measurements, hedge ineffectiveness
Gain (loss) from derivatives	322	771	563	(274)
Loss from change in fair value of hedged debt	(288)	(928)	(769)	(323)
Net decrease (increase) in interest expense	34	(157)	(206)	(597)
Recurring fair value measurements [Line Items]
Marketable securities (cash equivalents)	21,180		21,180
Marketable securities (funds held for customers)	5,505		5,505		5,418
Marketable securities (other current assets)	2,024		2,024		2,001
Long-term investment in mutual funds	2,035		2,035		2,165
Derivative assets	5,103		5,103		4,539
Quoted prices in active markets for identical assets (Level 1) [Member]
Recurring fair value measurements [Line Items]
Marketable securities (cash equivalents)	21,180		21,180
Marketable securities (funds held for customers)	0		0		0
Marketable securities (other current assets)	0		0		0
Long-term investment in mutual funds	2,035		2,035		2,165
Derivative assets	0		0		0
Significant other observable inputs (Level 2) [Member]
Recurring fair value measurements [Line Items]
Marketable securities (cash equivalents)	0		0
Marketable securities (funds held for customers)	5,505		5,505		5,418
Marketable securities (other current assets)	2,024		2,024		2,001
Long-term investment in mutual funds	0		0		0
Derivative assets	5,103		5,103		4,539
Significant unobservable inputs (Level 3) [Member]
Recurring fair value measurements [Line Items]
Marketable securities (cash equivalents)	0		0
Marketable securities (funds held for customers)	0		0		0
Marketable securities (other current assets)	0		0		0
Long-term investment in mutual funds	0		0		0
Derivative assets	$ 0		$ 0		$ 0

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Debt (Tables)

6 Months Ended

Jun. 30, 2012

Debt Disclosure [Abstract]

Debt outstanding

Debt outstanding was comprised of the following:

	June 30, 2012		December 31, 2011
5.125% senior, unsecured notes due October 1, 2014, net of discount(1)	$	256,847	$	256,131
7.375% senior notes due June 1, 2015	200,000		200,000
7.0% senior notes due March 15, 2019	200,000		200,000
Long-term portion of debt	656,847		656,131
5.0% senior, unsecured notes due December 15, 2012, net of discount(2)	85,296		85,575
Total debt	$	742,143	$	741,706

⁽¹⁾ Includes increase due to cumulative change in fair value of hedged debt of $3,475 as of June 30, 2012 and $2,788 as of December 31, 2011.

⁽²⁾ Includes increase due to cumulative change in fair value of hedged debt of $474 as of June 30, 2012 and $780 as of December 31, 2011.

Credit facility, amounts outstanding

Amounts outstanding under our credit facility were as follows:

	Six Months Ended June 30, 2012		Year Ended December 31, 2011
Daily average amount outstanding	$	—	$	21,655
Weighted-average interest rate	—		3.03		%

Credit facility, amount available for borrowing

As of June 30, 2012, amounts were available for borrowing under our credit facility as follows:

	Total available
Credit facility commitment	$	200,000
Outstanding letters of credit	(8,535		)
Net available for borrowing as of June 30, 2012	$	191,465

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Shareholders' equity (Tables)

6 Months Ended

Jun. 30, 2012

Stockholders' Equity Note [Abstract]

Shares outstanding

Shares outstanding– Changes in common shares outstanding were as follows:

	Six Months Ended June 30, 2012
Balance, December 31, 2011	50,826
Issued	249
Repurchased	(509	)
Retired	(25	)
Balance, June 30, 2012	50,541

Accumulated other comprehensive loss

Accumulated other comprehensive loss was comprised of the following:

	Pension and postretirement benefit plans, net of tax			Loss on derivatives, net of tax(1)			Net unrealized gain 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	)
Current period other comprehensive income (loss)	878			557			(11		)	28		1,452
Balance, June 30, 2012	$	(61,400	)	$	(2,374	)	$	167		$	5,658	$	(57,949	)

⁽¹⁾ Relates to interest rate locks executed in 2004 and 2002. See the caption "Note 6: Derivative financial instruments" in the Notes to Consolidated Financial Statements appearing in the 2011 Form 10-K.

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Consolidated financial statements

6 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidated financial statements

Consolidated financial statements

The consolidated balance sheet as of June 30, 2012, the consolidated statements of comprehensive income for the quarters and six months ended June 30, 2012 and 2011, the consolidated statement of shareholders' equity for the six months ended June 30, 2012, and the consolidated statements of cash flows for the six months ended June 30, 2012 and 2011 are unaudited. The consolidated balance sheet as of December 31, 2011 was derived from audited consolidated financial statements, but does not include all disclosures required by generally accepted accounting principles (GAAP) in the United States of America. In the opinion of management, all adjustments necessary for a fair statement of the consolidated financial statements are included. Adjustments consist only of normal recurring items, except for any discussed in the notes below. Interim results are not necessarily indicative of results for a full year. The consolidated financial statements and notes are presented in accordance with instructions for Form 10-Q, and do not contain certain information included in our annual consolidated financial statements and notes. The consolidated financial statements and notes appearing in this report should be read in conjunction with the consolidated audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2011 (the “2011 Form 10-K”).

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Business segment information (Tables)

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Business segment information

The following is our segment information as of and for the quarters ended June 30, 2012 and 2011:

		Reportable Business Segments
		Small Business Services		Financial Services		Direct Checks		Corporate		Consolidated
Revenue from external customers:	2012	$	233,088	$	85,664	$	52,262	$	—	$	371,014
	2011	203,156		86,656		56,462		—		346,274
Operating income:	2012	38,241		19,981		15,354		—		73,576
	2011	34,329		13,214		16,443		—		63,986
Depreciation and amortization	2012	11,017		3,021		2,299		—		16,337
expense:	2011	11,398		3,412		4,130		—		18,940
Total assets:	2012	860,819		93,928		171,222		296,225		1,422,194
	2011	778,740		96,847		173,928		285,461		1,334,976
Capital asset purchases:	2012	—		—		—		8,338		8,338
	2011	—		—		—		10,874		10,874

The following is our segment information as of and for the six months ended June 30, 2012 and 2011:

		Reportable Business Segments
		Small Business Services		Financial Services		Direct Checks		Corporate		Consolidated
Revenue from external customers:	2012	$	462,684	$	176,257	$	110,055	$	—	$	748,996
	2011	403,159		174,670		118,197		—		696,026
Operating income:	2012	77,015		41,902		32,684		—		151,601
	2011	70,099		28,911		32,431		—		131,441
Depreciation and amortization	2012	22,404		6,275		4,755		—		33,434
expense:	2011	22,533		6,165		9,985		—		38,683
Total assets:	2012	860,819		93,928		171,222		296,225		1,422,194
	2011	778,740		96,847		173,928		285,461		1,334,976
Capital asset purchases:	2012	—		—		—		17,334		17,334
	2011	—		—		—		19,296		19,296

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Earnings per share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Earnings per share - basic
Net income	$ 42,262	$ 35,473	$ 86,341	$ 68,029
Income allocated to participating securities	(287)	(211)	(575)	(325)
Income available to common shareholders	41,975	35,262	85,766	67,704
Weighted-average shares outstanding	50,737	51,175	50,796	51,221
Earnings per share - basic	$ 0.83	$ 0.69	$ 1.69	$ 1.32
Earnings per share - diluted
Net income	42,262	35,473	86,341	68,029
Income allocated to participating securities	(286)	(98)	(573)	(160)
Re-measurement of share-based awards classified as liabilities	23	(23)	35	13
Income available to common shareholders	$ 41,999	$ 35,352	$ 85,803	$ 67,882
Weighted-average shares outstanding	50,737	51,175	50,796	51,221
Dilutive impact of potential common shares	249	513	273	489
Weighted-average shares and potential common shares outstanding	50,986	51,688	51,069	51,710
Earnings per share - diluted	$ 0.82	$ 0.68	$ 1.68	$ 1.31
Antidilutive options excluded from calculation	2,010	1,449	2,010	1,449

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Business segment information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Segment Reporting [Abstract]
Number of reportable business segments	3		3
Business segment information [Line Items]
Revenue from external customers:	$ 371,014	$ 346,274	$ 748,996	$ 696,026
Operating income:	73,576	63,986	151,601	131,441
Depreciation and amortization expense:	16,337	18,940	33,434	38,683
Total assets:	1,422,194	1,334,976	1,422,194	1,334,976	1,388,809
Capital asset purchases:	8,338	10,874	17,334	19,296
Small Business Services [Member]
Business segment information [Line Items]
Percentage of revenue from sale of checks					47.20%
Revenue from external customers:	233,088	203,156	462,684	403,159
Operating income:	38,241	34,329	77,015	70,099
Depreciation and amortization expense:	11,017	11,398	22,404	22,533
Total assets:	860,819	778,740	860,819	778,740
Capital asset purchases:	0	0	0	0
Financial Services [Member]
Business segment information [Line Items]
Revenue from external customers:	85,664	86,656	176,257	174,670
Operating income:	19,981	13,214	41,902	28,911
Depreciation and amortization expense:	3,021	3,412	6,275	6,165
Total assets:	93,928	96,847	93,928	96,847
Capital asset purchases:	0	0	0	0
Direct Checks [Member]
Business segment information [Line Items]
Revenue from external customers:	52,262	56,462	110,055	118,197
Operating income:	15,354	16,443	32,684	32,431
Depreciation and amortization expense:	2,299	4,130	4,755	9,985
Total assets:	171,222	173,928	171,222	173,928
Capital asset purchases:	0	0	0	0
Corporate [Member]
Business segment information [Line Items]
Revenue from external customers:	0	0	0	0
Operating income:	0	0	0	0
Depreciation and amortization expense:	0	0	0	0
Total assets:	296,225	285,461	296,225	285,461
Capital asset purchases:	$ 8,338	$ 10,874	$ 17,334	$ 19,296

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CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Current Assets:
Cash and cash equivalents	$ 45,131	$ 28,687
Trade accounts receivable (net of allowances for uncollectible accounts of $3,601 and $4,007, respectively)	69,283	69,023
Inventories and supplies	23,813	22,043
Deferred income taxes	6,809	7,216
Funds held for customers	42,000	44,394
Other current assets	34,047	21,212
Total current assets	221,083	192,575
Long-Term Investments (including $2,035 and $2,165 of investments at fair value, respectively)	46,126	45,147
Property, Plant And Equipment (net of accumulated depreciation of $358,941 and $352,842, respectively)	108,223	113,411
Assets Held For Sale	0	2,741
Intangibles (net of accumulated amortization of $451,472 and $433,335, respectively)	161,491	157,339
Goodwill	789,742	776,998
Other Non-Current Assets	95,529	100,598
Total Assets	1,422,194	1,388,809
Current Liabilities:
Accounts payable	60,705	64,694
Accrued liabilities	142,984	150,098
Long-term debt due within one year	85,296	85,575
Total current liabilities	288,985	300,367
Long-Term Debt	656,847	656,131
Deferred Income Taxes	54,265	49,807
Other Non-Current Liabilities	63,180	79,815
Commitments And Contingencies (Notes 10 and 11)
Shareholders' Equity:
Common shares $1 par value (authorized: 500,000 shares; outstanding: 2012 - 50,541; 2011 - 50,826)	50,541	50,826
Additional paid-in capital	49,981	55,838
Retained earnings	316,344	255,426
Accumulated other comprehensive loss	(57,949)	(59,401)
Total shareholders' equity	358,917	302,689
Total Liabilities And Shareholders' Equity	$ 1,422,194	$ 1,388,809

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Fair value measurements (other financial instruments) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Carrying value [Member]
Fair value measurements, other financial instruments [Line Items]
Cash	$ 23,951	$ 28,687
Cash (funds held for customers)	36,495	38,976
Loans and notes receivable from distributors	15,563	11,940
Long-term debt, including portion due within one year	742,143	741,706
Fair value [Member]
Fair value measurements, other financial instruments [Line Items]
Cash	23,951	28,687
Cash (funds held for customers)	36,495	38,976
Loans and notes receivable from distributors	14,055	10,616
Long-term debt, including portion due within one year	764,969	738,157
Quoted prices in active markets for identical assets (Level 1) [Member]
Fair value measurements, other financial instruments [Line Items]
Cash	23,951	28,687
Cash (funds held for customers)	36,495	38,976
Loans and notes receivable from distributors	0	0
Long-term debt, including portion due within one year	764,969	544,657
Significant other observable inputs (Level 2) [Member]
Fair value measurements, other financial instruments [Line Items]
Cash	0	0
Cash (funds held for customers)	0	0
Loans and notes receivable from distributors	0	0
Long-term debt, including portion due within one year	0	193,500
Significant unobservable inputs (Level 3) [Member]
Fair value measurements, other financial instruments [Line Items]
Cash	0	0
Cash (funds held for customers)	0	0
Loans and notes receivable from distributors	14,055	10,616
Long-term debt, including portion due within one year	$ 0	$ 0

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CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) (Parentheticals) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Shareholders' Equity:
Common stock, par value	$ 1.00	$ 1.00

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Supplemental balance sheet information (available-for-sale securities) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Available-for-sale securities [Line Items]
Cost	$ 28,481	$ 7,176
Gross unrealized gains	228	243
Gross unrealized losses	0	0
Fair value	28,709	7,419
Funds held for customers
Funds held for customers, cash	36,495	38,976
Expected maturities of available-for-sale securities
Due in one year or less	23,280
Due in two to five years	1,905
Due in six to ten years	3,524
Total available-for-sale securities	28,709	7,419
Cash equivalents [Member] | Money market securities [Member]
Available-for-sale securities [Line Items]
Cost	21,180
Gross unrealized gains	0
Gross unrealized losses	0
Fair value	21,180
Expected maturities of available-for-sale securities
Total available-for-sale securities	21,180
Funds held for customers [Member]
Available-for-sale securities [Line Items]
Cost		5,175
Gross unrealized gains		243
Gross unrealized losses		0
Fair value		5,418
Expected maturities of available-for-sale securities
Total available-for-sale securities		5,418
Funds held for customers [Member] | Money market securities [Member]
Available-for-sale securities [Line Items]
Cost		3
Gross unrealized gains		0
Gross unrealized losses		0
Fair value		3
Expected maturities of available-for-sale securities
Total available-for-sale securities		3
Funds held for customers [Member] | Canadian and provincial government securities [Member]
Available-for-sale securities [Line Items]
Cost	5,277	5,172
Gross unrealized gains	228	243
Gross unrealized losses	0	0
Fair value	5,505	5,415
Expected maturities of available-for-sale securities
Total available-for-sale securities	5,505	5,415
Other current assets [Member] | Money market securities [Member]
Available-for-sale securities [Line Items]
Cost	2,024	2,001
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Fair value	2,024	2,001
Expected maturities of available-for-sale securities
Total available-for-sale securities	$ 2,024	$ 2,001

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New accounting pronouncements (Policies)

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

New accounting pronouncements

New accounting pronouncements

On January 1, 2012, we adopted Accounting Standards Update (ASU) No. 2011-05, Presentation of ComprehensiveIncome. This standard eliminates the option to report other comprehensive income and its components in the statement of shareholders' equity. Also effective January 1, 2012, we adopted ASU No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. This standard temporarily defers a provision included in ASU No. 2011-05 which requires that reclassification adjustments from other comprehensive income to net income be presented by income statement line item. Our presentation of comprehensive income in this quarterly report on Form 10-Q complies with these accounting standards.

On January 1, 2012, we adopted ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S GAAP and IFRSs. The new guidance changes some fair value measurement principles and disclosure requirements. The changes in fair value measurement principles relate primarily to financial assets and did not affect the fair value measurements presented in this report on Form 10-Q. The fair value disclosures required by the new standard are presented in Note 7: Fair value measurements.

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Supplemental balance sheet information (assets held for sale) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Assets held for sale [Abstract]
Proceeds from sale of facility	$ 2,613
Net (loss) gain on sale of facility	$ (128)	$ 0	$ (128)	$ 110

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Supplemental balance sheet information (Tables)

6 Months Ended

Jun. 30, 2012

Balance Sheet Related Disclosures [Abstract]

Inventories and supplies

Inventories and supplies – Inventories and supplies were comprised of the following:

	June 30, 2012		December 31, 2011
Raw materials	$	5,521	$	5,566
Semi-finished goods	8,653		8,273
Finished goods	6,579		5,301
Supplies, primarily production	3,060		2,903
Inventories and supplies	$	23,813	$	22,043

Available-for-sale securities

Available-for-sale securities – Available-for-sale securities included within cash and cash equivalents, funds held for customers and other current assets were comprised of the following:

	June 30, 2012
	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Money market securities (cash equivalents)	$	21,180	$	—	$	—	$	21,180
Canadian and provincial government securities (funds held for customers)(1)	5,277		228		—		5,505
Money market securities (other current assets)	2,024		—		—		2,024
Total available-for-sale securities	$	28,481	$	228	$	—	$	28,709

⁽¹⁾ Funds held for customers, as reported on the consolidated balance sheet as of June 30, 2012, also included cash of $36,495.

	December 31, 2011
	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Money market securities	$	3	$	—	$	—	$	3
Canadian and provincial government securities	5,172		243		—		5,415
Available-for-sale securities (funds held for customers)(1)	5,175		243		—		5,418
Money market securities (other current assets)	2,001		—		—		2,001
Total available-for-sale securities	$	7,176	$	243	$	—	$	7,419

⁽¹⁾ Funds held for customers, as reported on the consolidated balance sheet as of December 31, 2011, also included cash of $38,976.

Expected maturities of available-for-sale securities

Expected maturities of available-for-sale securities as of June 30, 2012 were as follows:

	Fair value
Due in one year or less	$	23,280
Due in two to five years	1,905
Due in six to ten years	3,524
Total available-for-sale securities	$	28,709

Intangibles

Intangibles – Intangibles were comprised of the following:

	June 30, 2012							December 31, 2011
	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	427,030		(361,214		)	65,816		410,905		(345,145		)	65,760
Customer lists/relationships	58,872		(25,873		)	32,999		52,542		(26,059		)	26,483
Distributor contracts	30,900		(29,098		)	1,802		30,900		(28,198		)	2,702
Trade names	68,561		(28,017		)	40,544		67,661		(25,958		)	41,703
Other	8,500		(7,270		)	1,230		9,566		(7,975		)	1,591
Amortizable intangibles	593,863		(451,472		)	142,391		571,574		(433,335		)	138,239
Intangibles	$	612,963	$	(451,472	)	$	161,491	$	590,674	$	(433,335	)	$	157,339

Estimated future amortization expense

Based on the intangibles in service as of June 30, 2012, estimated future amortization expense is as follows:

	Estimated amortization expense
Remainder of 2012	$	21,415
2013	34,218
2014	22,156
2015	10,906
2016	7,728

Goodwill

Goodwill – Changes in goodwill during the six months ended June 30, 2012 were as follows:

	Small Business Services			Financial Services		Direct Checks		Total
Balance, December 31, 2011:
Goodwill, gross	$	621,314		$	27,178	$	148,506	$	796,998
Accumulated impairment charges	(20,000		)	—		—		(20,000		)
Goodwill, net of accumulated impairment charges	601,314			27,178		148,506		776,998
Acquisition of OrangeSoda, Inc. (see Note 5)	12,735			—		—		12,735
Currency translation adjustment	9			—		—		9
Balance, June 30, 2012:
Goodwill, gross	634,058			27,178		148,506		809,742
Accumulated impairment charges	(20,000		)	—		—		(20,000		)
Goodwill, net of accumulated impairment charges	$	614,058		$	27,178	$	148,506	$	789,742

Other non-current assets

Other non-current assets – Other non-current assets were comprised of the following:

	June 30, 2012		December 31, 2011
Contract acquisition costs	$	48,906	$	55,076
Loans and notes receivable from distributors	14,314		11,148
Deferred advertising costs	14,043		15,599
Other	18,266		18,775
Other non-current assets	$	95,529	$	100,598

Changes in contract acquisition costs

Changes in contract acquisition costs during the six months ended June 30, 2012 and 2011 were as follows:

	Six Months Ended June 30,
	2012			2011
Balance, beginning of year	$	55,076		$	57,476
Additions(1)	2,668			1,770
Amortization	(8,546		)	(8,665		)
Other	(292		)	(170		)
Balance, end of period	$	48,906		$	50,411

⁽¹⁾ Contract acquisition costs are accrued upon contract execution. Cash payments made for contract acquisition costs were $10,516 for the six months ended June 30, 2012 and $5,615 for the six months ended June 30, 2011.

Accrued liabilities

Accrued liabilities – Accrued liabilities were comprised of the following:

	June 30, 2012		December 31, 2011
Funds held for customers	$	41,284	$	43,829
Employee profit sharing/cash bonus	22,297		23,783
Customer rebates	20,122		20,969
Wages, including vacation	12,657		4,995
Interest	8,737		8,760
Contract acquisition costs due within one year	5,152		13,070
Restructuring due within one year (see Note 8)	3,766		5,946
Other	28,969		28,746
Accrued liabilities	$	142,984	$	150,098

Other non-current liabilities

Other non-current liabilities – Other non-current liabilities were comprised of the following:

	June 30, 2012		December 31, 2011
Pension and postretirement benefit plans	$	36,458	$	48,859
Contract acquisition costs	7,305		7,455
Unrecognized tax benefits, including interest and penalties	6,750		7,570
Other	12,667		15,931
Other non-current liabilities	$	63,180	$	79,815

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash Flows From Operating Activities:
Net income	$ 86,341	$ 68,029
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	10,130	10,584
Amortization of intangibles	23,304	28,099
Amortization of contract acquisition costs	8,546	8,665
Deferred income taxes	4,110	2,345
Employee share-based compensation expense	3,404	3,127
Loss on early debt extinguishment	0	6,995
Other non-cash items, net	4,885	6,389
Changes in assets and liabilities, net of effect of acquisitions:
Trade accounts receivable	(28)	(304)
Inventories and supplies	(2,580)	(144)
Other current assets	(6,257)	(4,565)
Non-current assets	1,295	3,116
Accounts payable	(2,948)	1,566
Contract acquisition payments	(10,516)	(5,615)
Other accrued and non-current liabilities	(19,777)	(24,105)
Net cash provided by operating activities	99,909	104,182
Cash Flows From Investing Activities:
Purchases of capital assets	(17,334)	(19,296)
Payments for acquisitions, net of cash acquired	(28,459)	(36,754)
Loans to distributors	(3,150)	0
Other	3,211	740
Net cash used by investing activities	(45,732)	(55,310)
Cash Flows From Financing Activities:
Net proceeds from short-term debt	0	6,000
Payments on long-term debt, including costs of debt reacquisition	0	(215,030)
Proceeds from issuing long-term debt	0	200,000
Payments for debt issue costs	(1,163)	(3,429)
Change in book overdrafts	(2,652)	(905)
Proceeds from issuing shares under employee plans	2,873	6,514
Excess tax benefit from share-based employee awards	443	1,313
Payments for common shares repurchased	(11,999)	(17,986)
Cash dividends paid to shareholders	(25,423)	(25,663)
Net cash used by financing activities	(37,921)	(49,186)
Effect Of Exchange Rate Change On Cash	188	557
Net Change In Cash And Cash Equivalents	16,444	243
Cash And Cash Equivalents:
Beginning Of Period	28,687	17,383
End Of Period	$ 45,131	$ 17,626

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CONSOLIDATED BALANCE SHEETS (Unaudited) (Parentheticals) (USD $) In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Current Assets:
Allowances for uncollectible accounts	$ 3,601	$ 4,007
Investments at fair value	2,035	2,165
Accumulated depreciation	358,941	352,842
Accumulated amortization	$ 451,472	$ 433,335
Shareholders' Equity:
Common stock, par value	$ 1.00	$ 1.00
Common stock, shares authorized	500,000	500,000
Common stock, shares outstanding	50,541	50,826

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Debt

6 Months Ended

Jun. 30, 2012

Debt Disclosure [Abstract]

Debt

Debt

Debt outstanding was comprised of the following:

	June 30, 2012		December 31, 2011
5.125% senior, unsecured notes due October 1, 2014, net of discount(1)	$	256,847	$	256,131
7.375% senior notes due June 1, 2015	200,000		200,000
7.0% senior notes due March 15, 2019	200,000		200,000
Long-term portion of debt	656,847		656,131
5.0% senior, unsecured notes due December 15, 2012, net of discount(2)	85,296		85,575
Total debt	$	742,143	$	741,706

⁽¹⁾ Includes increase due to cumulative change in fair value of hedged debt of $3,475 as of June 30, 2012 and $2,788 as of December 31, 2011.

⁽²⁾ Includes increase due to cumulative change in fair value of hedged debt of $474 as of June 30, 2012 and $780 as of December 31, 2011.

Discounts from par value are being amortized ratably as increases 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. The notes due in 2019 and 2015 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.

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 Securities and Exchange Commission (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 14. At any time prior to March 15, 2014, 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 107% of the principal amount of the notes, together with accrued and unpaid interest. 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 $212,000 as of June 30, 2012, based on quoted prices for identical liabilities when traded as assets.

In May 2007, we issued $200,000 of 7.375% senior notes maturing on June 1, 2015. 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 June 29, 2007. Interest payments are due each June and December. The notes are guaranteed by the same subsidiaries which guarantee our notes due in 2019 and place a limitation on restricted payments, including share repurchases and increases in dividend levels. This limitation 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 14. Principal redemptions may be made at our election at any time at redemption prices ranging from 100% to 103.688% of the principal amount. If 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 $196,329. These proceeds were used as part of our repayment of unsecured notes which matured on October 1, 2007. The fair value of the notes issued in May 2007 was $211,000 as of June 30, 2012, based on quoted prices for identical liabilities when traded as assets.

In October 2004, we issued $275,000 of 5.125% senior, unsecured notes maturing 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 are 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. During the quarter ended March 31, 2011, we retired $10,000 of these notes, realizing a pre-tax loss of $185. As of June 30, 2012, the fair value of the $253,500 remaining notes outstanding was $256,035 based on quoted prices for identical liabilities when traded as assets. As discussed in Note 6, we have entered into interest rate swaps to hedge a portion of these notes. The fair value of long-term debt disclosed here does not reflect the impact of these fair value hedges.

In December 2002, we issued $300,000 of 5.0% senior, unsecured notes maturing on December 15, 2012. These notes were issued under our shelf registration statement covering up to $300,000 in medium-term notes, thereby exhausting that registration statement. Interest payments are due each June and December. Principal redemptions may be made at our election prior to the stated maturity. Proceeds from the offering, net of offering costs, were $295,722. These proceeds were used for general corporate purposes, including funding share repurchases, capital asset purchases and working capital. During the quarter ended March 31, 2011, we retired $195,463 of these notes, realizing a pre-tax loss of $6,810. As of June 30, 2012, the fair value of the $84,847 remaining notes outstanding was $85,934, based on quoted prices for identical liabilities when traded as assets. As discussed in Note 6, we have entered into interest rate swaps to hedge these notes. The fair value of long-term debt disclosed here does not reflect the impact of these fair value hedges.

As of December 31, 2011, we had a $200,000 credit facility, which was scheduled to expire in March 2013. In February 2012, we modified the terms of this credit facility, extending its term to February 2017. Additionally, we lowered our commitment fee to a range of 0.20% to 0.45% 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.

Amounts outstanding under our credit facility were as follows:

	Six Months Ended June 30, 2012		Year Ended December 31, 2011
Daily average amount outstanding	$	—	$	21,655
Weighted-average interest rate	—		3.03		%

No amounts were outstanding under our credit facility as of June 30, 2012 and December 31, 2011. As of June 30, 2012, amounts were available for borrowing under our credit facility as follows:

	Total available
Credit facility commitment	$	200,000
Outstanding letters of credit	(8,535		)
Net available for borrowing as of June 30, 2012	$	191,465

Absent certain defined events of default under our debt instruments, and as long as our ratio of earnings before interest, taxes, depreciation and amortization (EBITDA) to interest expense, as defined, is in excess of two to one, our debt covenants do not restrict our ability to pay cash dividends at our current rate, although there are aggregate annual limits on the amount of dividends and share repurchases under the terms of our credit facility, as well as a cumulative limit on such payments through the term of the credit facility. If our ratio of EBITDA to interest expense falls below two to one, there would also be limitations on our ability to issue additional debt.

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Document and Entity Information Document	3 Months Ended
	Jun. 30, 2012	Jul. 24, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	DELUXE CORP
Entity Central Index Key	0000027996
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		50,555,181

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Other commitments and contingencies

6 Months Ended

Jun. 30, 2012

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 $8,913 as of June 30, 2012 and $8,730 as of December 31, 2011, primarily related to facilities which have been sold. These accruals are included in accrued liabilities and other long-term 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 comprehensive income for environmental matters was $546 for the six months ended June 30, 2012 and $99 for the six months ended June 30, 2011.

As of June 30, 2012, $6,175 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 $6,736 had been paid through June 30, 2012. This insurance policy does not cover properties acquired subsequent to 2002. However, costs included in our environmental accruals for such properties were not material as of June 30, 2012. We do not anticipate significant net cash outlays for environmental matters in 2012. 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 new 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 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 $4,863 as of June 30, 2012 and $5,141 as of December 31, 2011, is accounted for on a present value basis. The difference between the discounted and undiscounted workers' compensation liability was $25 as of June 30, 2012 and $20 as of December 31, 2011. 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 $4,288 as of June 30, 2012 and $3,848 as of December 31, 2011. The difference between the discounted and undiscounted medical and dental liability was $296 as of June 30, 2012 and December 31, 2011.

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.

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Income Statement [Abstract]
Revenue	$ 371,014	$ 346,274	$ 748,996	$ 696,026
Cost of goods sold, including net restructuring charges	(127,594)	(120,687)	(255,082)	(240,849)
Gross Profit	243,420	225,587	493,914	455,177
Selling, general and administrative expense	(167,718)	(157,526)	(339,549)	(318,344)
Net restructuring charges	(1,998)	(4,075)	(2,636)	(5,502)
Net (loss) gain on sale of facility	(128)	0	(128)	110
Operating Income	73,576	63,986	151,601	131,441
Loss on early debt extinguishment	0	0	0	(6,995)
Interest expense	(11,356)	(12,054)	(23,053)	(24,092)
Other income (expense)	317	(69)	356	86
Income Before Income Taxes	62,537	51,863	128,904	100,440
Income tax provision	(20,275)	(16,390)	(42,563)	(32,411)
Net Income	42,262	35,473	86,341	68,029
Comprehensive Income	$ 42,183	$ 36,365	$ 87,793	$ 70,480
Basic Earnings Per Share	$ 0.83	$ 0.69	$ 1.69	$ 1.32
Diluted Earnings Per Share	$ 0.82	$ 0.68	$ 1.68	$ 1.31
Cash Dividends Per Share	$ 0.25	$ 0.25	$ 0.50	$ 0.50

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Acquisitions

6 Months Ended

Jun. 30, 2012

Business Combinations [Abstract]

Acquisitions

Acquisitions

In May 2012, we acquired all of the outstanding stock of OrangeSoda, Inc., a provider of internet marketing services specializing in search, mobile and social media campaign strategies for small businesses, in a cash transaction for $26,634, net of cash acquired. We funded the acquisition with cash on hand. The preliminary allocation of the purchase price based upon the estimated fair values of the assets acquired and liabilities assumed resulted in goodwill of $12,735. We expect to finalize the allocation of the purchase price during the third quarter of 2012 when the working capital adjustment required by the purchase agreement and our valuation of deferred income taxes is finalized. This acquisition resulted in the recognition of goodwill as we expect to accelerate revenue growth in marketing solutions and other services by combining our capabilities with OrangeSoda's solutions, tools, platform and market presence. Transaction costs related to this acquisition were expensed as incurred and were not significant to our consolidated statements of comprehensive income for the quarter and six months ended June 30, 2012. 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 a weighted-average useful life of 9 years, internal-use software valued at $3,300 with a useful life of 5 years, and a trade name valued at $900 with a useful life of 5 years. Further information regarding the calculation of the estimated fair values of these assets can be found in Note 7.

During the six months ended June 30, 2012, we acquired the operations of small business distributors for aggregate cash payments of $1,825. The assets acquired consisted primarily of customer lists and inventory, a portion of which was sold to Safeguard® distributors during the six months ended June 30, 2012. We entered into notes receivable upon the sale of the assets, and we recognized no gains or losses on these dispositions.

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Earnings per share

6 Months Ended

Jun. 30, 2012

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. 

	Quarter Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Earnings per share – basic:
Net income	$	42,262		$	35,473		$	86,341		$	68,029
Income allocated to participating securities	(287		)	(211		)	(575		)	(325		)
Income available to common shareholders	$	41,975		$	35,262		$	85,766		$	67,704
Weighted-average shares outstanding	50,737			51,175			50,796			51,221
Earnings per share – basic	$	0.83		$	0.69		$	1.69		$	1.32
Earnings per share – diluted:
Net income	$	42,262		$	35,473		$	86,341		$	68,029
Income allocated to participating securities	(286		)	(98		)	(573		)	(160		)
Re-measurement of share-based awards classified as liabilities	23			(23		)	35			13
Income available to common shareholders	$	41,999		$	35,352		$	85,803		$	67,882
Weighted-average shares outstanding	50,737			51,175			50,796			51,221
Dilutive impact of potential common shares	249			513			273			489
Weighted-average shares and potential common shares outstanding	50,986			51,688			51,069			51,710
Earnings per share – diluted	$	0.82		$	0.68		$	1.68		$	1.31
Antidilutive options excluded from calculation	2,010			1,449			2,010			1,449

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Long-term investments (Policies)

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Long-term investments

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 on the consolidated balance sheets. Long-term investments also include the cash surrender values of company-owned life insurance policies. Realized and unrealized gains and losses, as well as dividends earned by the mutual fund investment, are included in selling, general and administrative (SG&A) expense on the consolidated statements of comprehensive 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 on the consolidated statements of comprehensive 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 statements of comprehensive income. The cost of securities sold is determined using the average cost method.

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Shareholders' equity

6 Months Ended

Jun. 30, 2012

Stockholders' Equity Note [Abstract]

Shareholders' equity

Shareholders’ equity

Shares outstanding– Changes in common shares outstanding were as follows:

	Six Months Ended June 30, 2012
Balance, December 31, 2011	50,826
Issued	249
Repurchased	(509	)
Retired	(25	)
Balance, June 30, 2012	50,541

Share repurchases– 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 4,748 shares remained available for purchase under this authorization as of June 30, 2012. During the six months ended June 30, 2012, we repurchased 509 shares for $11,999.

Accumulated other comprehensive loss was comprised of the following:

	Pension and postretirement benefit plans, net of tax			Loss on derivatives, net of tax(1)			Net unrealized gain 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	)
Current period other comprehensive income (loss)	878			557			(11		)	28		1,452
Balance, June 30, 2012	$	(61,400	)	$	(2,374	)	$	167		$	5,658	$	(57,949	)

⁽¹⁾ Relates to interest rate locks executed in 2004 and 2002. See the caption "Note 6: Derivative financial instruments" in the Notes to Consolidated Financial Statements appearing in the 2011 Form 10-K.

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Restructuring charges

6 Months Ended

Jun. 30, 2012

Restructuring and Related Activities [Abstract]

Restructuring charges

Restructuring charges

Net restructuring charges for each period consisted of the following components:

	Quarter Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Severance accruals	$	1,044		$	2,027		$	3,036		$	2,823
Severance reversals	(443		)	(171		)	(908		)	(909		)
Net restructuring accruals	601			1,856			2,128			1,914
Other costs	1,320			2,748			1,670			4,164
Net restructuring charges	$	1,921		$	4,604		$	3,798		$	6,078

The net restructuring charges are reflected in the consolidated statements of comprehensive income as follows:

	Quarter Ended June 30,					Six Months Ended June 30,
	2012			2011		2012		2011
Cost of goods sold	$	(77	)	$	529	$	1,162	$	576
Operating expenses	1,998			4,075		2,636		5,502
Net restructuring charges	$	1,921		$	4,604	$	3,798	$	6,078

2012 restructuring charges – During the quarter ended June 30, 2012, the net restructuring accruals included severance charges related to employee reductions across functional areas as we continue to reduce costs, including the planned closing of a printing facility by early 2013 and the planned closing of two customer call centers during the third quarter of 2012. Restructuring charges for the six months ended June 30, 2012 also included severance charges related to the planned closing of a printing facility in the fourth quarter of 2012. The restructuring accruals included severance benefits for approximately 50 employees for the quarter ended June 30, 2012 and severance benefits for approximately 195 employees for the six months ended June 30, 2012. 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 employee and equipment moves, training and travel related to our restructuring activities.

2011 restructuring charges – During the quarter and six months ended June 30, 2011, the net restructuring accruals included severance charges related to employee reductions in various functional areas as we continued to reduce costs. The restructuring accruals included severance benefits for approximately 70 employees for the quarter ended June 30, 2011 and severance benefits for approximately 90 employees for the six months ended June 30, 2011. These charges were reduced by the reversal of restructuring accruals, recorded primarily in 2010, as fewer employees received severance benefits than originally estimated. Other restructuring costs, which were expensed as incurred, included items such as employee and equipment moves, training and travel related to our restructuring activities.

Restructuring accruals of $3,766 as of June 30, 2012 are reflected in the consolidated balance sheet as accrued liabilities. Restructuring accruals of $6,032 as of December 31, 2011 are reflected in the consolidated balance sheet as accrued liabilities of $5,946 and other non-current liabilities of $86. The majority of the employee reductions are expected to be completed by the end of 2012 , and we expect most of the related severance payments to be paid by mid-2013, utilizing cash from operations. The remaining payments due under operating lease obligations will be paid through May 2013. As of June 30, 2012, approximately 225 employees had not yet started to receive severance benefits. Further information regarding our restructuring accruals can be found under the caption “Note 8: Restructuring charges” in the Notes to Consolidated Financial Statements appearing in the 2011 Form 10-K.

As of June 30, 2012, accruals for our restructuring initiatives, summarized by year, were as follows:

	2009 initiatives			2010 initiatives			2011 initiatives			2012  initiatives			Total
Balance, December 31, 2011	$	184		$	781		$	5,067		$	—		$	6,032
Restructuring charges	11			9			262			2,754			3,036
Restructuring reversals	—			(189		)	(672		)	(47		)	(908		)
Payments	(157		)	(373		)	(3,082		)	(782		)	(4,394		)
Balance, June 30, 2012	$	38		$	228		$	1,575		$	1,925		$	3,766
Cumulative amounts:
Restructuring charges	$	11,035		$	9,724		$	9,056		$	2,754		$	32,569
Restructuring reversals	(1,670		)	(1,511		)	(1,283		)	(47		)	(4,511		)
Payments	(9,327		)	(7,985		)	(6,198		)	(782		)	(24,292		)
Balance, June 30, 2012	$	38		$	228		$	1,575		$	1,925		$	3,766

As of June 30, 2012, the components of our restructuring accruals, by segment, were as follows:

	Employee severance benefits												Operating lease obligations
	Small Business Services			Financial Services			Direct Checks			Corporate			Small Business Services			Direct Checks			Total
Balance, December 31, 2011	$	887		$	1,397		$	744		$	2,647		$	69		$	288		$	6,032
Restructuring charges	891			166			162			1,817			—			—			3,036
Restructuring reversals	(72		)	(124		)	(75		)	(637		)	—			—			(908		)
Inter-segment transfer	184			(184		)	(40		)	40			—			—			—
Payments	(1,466		)	(979		)	(7		)	(1,774		)	(66		)	(102		)	(4,394		)
Balance, June 30, 2012	$	424		$	276		$	784		$	2,093		$	3		$	186		$	3,766
Cumulative amounts(1):
Restructuring charges	$	9,888		$	6,000		$	3,445		$	12,363		$	364		$	509		$	32,569
Restructuring reversals	(1,621		)	(839		)	(267		)	(1,784		)	—			—			(4,511		)
Inter-segment transfer	309			50			(38		)	(321		)	—			—			—
Payments	(8,152		)	(4,935		)	(2,356		)	(8,165		)	(361		)	(323		)	(24,292		)
Balance, June 30, 2012	$	424		$	276		$	784		$	2,093		$	3		$	186		$	3,766

⁽¹⁾ Includes accruals related to our cost reduction initiatives for 2009 through 2012.

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Derivative financial instruments

6 Months Ended

Jun. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative financial instruments

Derivative financial instruments

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 comprehensive income. When the change in the fair value of the interest rate swaps and the hedged debt are not equal (i.e., hedge ineffectiveness), the difference in the changes in fair value affects the reported amount of interest expense in our consolidated statements of comprehensive income. Information regarding hedge ineffectiveness in each period is presented in Note 7. The fair value of the interest rate swaps related to our debt due in 2012 is included in other current assets on the consolidated balance sheets. The fair value of the interest rate swaps related to our debt due in 2014 is included in other non-current assets on the consolidated balance sheets.

Information regarding interest rate swaps as of June 30, 2012 was as follows:

	Notional amount		Fair value of interest rate swaps		Increase in debt due to fair value adjustment
Fair value hedge related to long-term debt due in 2012	$	84,847	$	913	$	474
Fair value hedge related to long-term debt due in 2014	198,000		4,190		3,475
Total fair value hedges	$	282,847	$	5,103	$	3,949

Information regarding interest rate swaps as of December 31, 2011 was as follows:

	Notional amount		Fair value of interest rate swaps		Increase in debt due to fair value adjustment
Fair value hedge related to long-term debt due in 2012	$	84,847	$	1,309	$	780
Fair value hedge related to long-term debt due in 2014	198,000		3,230		2,788
Total fair value hedges	$	282,847	$	4,539	$	3,568

During the first quarter of 2011, we retired a portion of our long-term debt due in 2012 (see Note 10). In conjunction with this debt retirement, we settled a portion of the interest rate swaps and received cash payments of $2,548. Interest rate swaps remaining after the settlement were redesignated as fair value hedges during March 2011. In conjunction with the debt retirement, we recognized $3,094 of the fair value adjustment to the hedged debt, decreasing the loss on early debt extinguishment recognized during the first quarter of 2011. The $1,355 remaining fair value adjustment to the hedged debt as of the date hedge accounting was discontinued is being recorded as a decrease to interest expense over the term of the remaining debt.

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Fair value measurements

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Abstract]

Fair value measurements

Fair value measurements

2012 acquisitions – For all business combinations, 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 the quarter ended June 30, 2012 (see Note 5) were comprised primarily of customer relationships, a trade name and internal-use software associated with the acquisition of OrangeSoda, Inc. 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, which is being amortized over a weighted-average useful life of 9 years using an accelerated method. 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, which is being amortized on the straight-line basis over 5 years. The fair value of the trade name was estimated using a relief from royalty method, which calculates the cost savings associated with owning rather than licensing the trade name. An assumed royalty rate was applied to forecasted revenue and the resulting cash flows were discounted. The assumed royalty rate was based on market data and an analysis of the expected margins for the acquired operations. The calculated fair value of the trade name was $900, which is being amortized on the straight-line basis over 5 years.

Recurring fair value measurements – Cash and cash equivalents as of June 30, 2012 include available-for-sale marketable securities (see Note 3). These securities consist of investments in various money market funds which are traded in active markets. As such, the fair value of these investments is determined based on quoted market prices. 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 quarters or six months ended June 30, 2012.

Funds held for customers include available-for-sale marketable securities (see Note 3). These securities consist primarily of a mutual fund investment which invests in Canadian and provincial government securities. The 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. Unrealized gains and losses, net of tax, are included in accumulated other comprehensive loss on the consolidated balance sheets. Realized gains and losses are included in revenue on the consolidated statements of comprehensive income and were not significant for the quarters or six months ended June 30, 2012 and 2011. The cost of securities sold is determined using the average cost method.

Other current assets include available-for-sale marketable securities (see Note 3). These securities consist 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 quarters or six months ended June 30, 2012 and 2011.

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 on the consolidated balance sheets. Long-term investments also include the cash surrender values of company-owned life insurance policies. Realized and unrealized gains and losses, as well as dividends earned by the mutual fund investment, are included in selling, general and administrative (SG&A) expense on the consolidated statements of comprehensive 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 on the consolidated statements of comprehensive 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 statements of comprehensive income. The cost of securities sold is determined using the average cost method. Realized gains recognized during the quarters and six months ended June 30, 2012 and 2011 were not significant. We recognized a net unrealized loss on the investment in mutual funds of $105 during the quarter ended June 30, 2012 and a net unrealized gain of $63 during the quarter ended June 30, 2011. We recognized a net unrealized gain of $6 during the six months ended June 30, 2012 and $243 during the six months ended June 30, 2011.

The fair value of interest rate swaps (see 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. 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 comprehensive income and were as follows:

	Quarter Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Gain (loss) from derivatives	$	322		$	771		$	563		$	(274	)
Loss from change in fair value of hedged debt	(288		)	(928		)	(769		)	(323		)
Net decrease (increase) in interest expense	$	34		$	(157	)	$	(206	)	$	(597	)

Information regarding recurring fair value measurements completed during each period was as follows:

			Fair value measurements using
	Fair value as of June 30, 2012		Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
			(Level 1)		(Level 2)		(Level 3)
Marketable securities (cash equivalents)	$	21,180	$	21,180	$	—	$	—
Marketable securities (funds held for customers)	5,505		—		5,505		$	—
Marketable securities (other current assets)	2,024		—		2,024		—
Long-term investment in mutual funds	2,035		2,035		—		—
Derivative assets	5,103		—		5,103		—

			Fair value measurements using
	Fair value as of December 31, 2011		Quoted prices in active markets for identical assets		Significant other observableinputs		Significant unobservable inputs
			(Level 1)		(Level 2)		(Level 3)
Marketable securities (funds held for customers)	$	5,418	$	—	$	5,418	$	—
Marketable securities (other current assets)	2,001		—		2,001		—
Long-term investment in mutual funds	2,165		2,165		—		—
Derivative assets	4,539		—		4,539		—

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 and cash included within funds held for customers – 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, during both 2012 and 2011, we 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 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 is based on quoted prices for identical liabilities when traded as assets in an active market. As of December 31, 2011, our long-term debt issued in March 2011 was not traded in an active market. As such, its fair value as of December 31, 2011 was determined by means of a pricing model utilizing readily observable market interest rates and data from trades executed by institutional investors. 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
	June 30, 2012				Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
	Carrying value		Fair value		(Level 1)		(Level 2)		(Level 3)
Cash	$	23,951	$	23,951	$	23,951	$	—	$	—
Cash (funds held for customers)	36,495		36,495		36,495		—		—
Loans and notes receivable from distributors	15,563		14,055		—		—		14,055
Long-term debt, including portion due within one year	742,143		764,969		764,969		—		—

					Fair value measurements using
	December 31, 2011				Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
	Carrying value		Fair value		(Level 1)		(Level 2)		(Level 3)
Cash	$	28,687	$	28,687	$	28,687	$	—	$	—
Cash (funds held for customers)	38,976		38,976		38,976		—		—
Loans and notes receivable from distributors	11,940		10,616		—		—		10,616
Long-term debt, including portion due within one year	741,706		738,157		544,657		193,500		—

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Pension and other postretirement benefits

6 Months Ended

Jun. 30, 2012

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Pension and other postretirement benefits

Pension and other postretirement benefits

We have historically provided certain health care benefits for a large number of retired U.S. employees. In addition to our retiree health care plan, we also have a supplemental executive retirement plan in the United States. Further information regarding our postretirement benefit plans can be found under the caption “Note 12: Pension and other postretirement benefits” in the Notes to Consolidated Financial Statements appearing in the 2011 Form 10-K.

Pension and postretirement benefit expense for the quarters ended June 30, 2012 and 2011 consisted of the following components:

	Postretirement benefit plan						Pension plan
	2012			2011			2012		2011
Interest cost	$	1,478		$	1,667		$	37	$	41
Expected return on plan assets	(1,950		)	(1,963		)	—		—
Amortization of prior service credit	(764		)	(936		)	—		—
Amortization of net actuarial losses	1,467			1,354			2		—
Net periodic benefit expense	$	231		$	122		$	39	$	41

Pension and postretirement benefit expense for the six months ended June 30, 2012 and 2011 consisted of the following components:

	Postretirement benefit plan						Pension plan
	2012			2011			2012		2011
Interest cost	$	2,956		$	3,334		$	74	$	82
Expected return on plan assets	(3,901		)	(3,926		)	—		—
Amortization of prior service credit	(1,528		)	(1,871		)	—		—
Amortization of net actuarial losses	2,935			2,708			4		—
Net periodic benefit expense	$	462		$	245		$	78	$	82

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Supplemental balance sheet information (inventories and supplies) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Inventories and supplies [Abstract]
Raw materials	$ 5,521	$ 5,566
Semi-finished goods	8,653	8,273
Finished goods	6,579	5,301
Supplies, primarily production	3,060	2,903
Inventories and supplies	$ 23,813	$ 22,043

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Other commitments and contingencies (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Environmental Remediation Obligations [Abstract]
Accruals for environmental matters	$ 8,913		$ 8,730
Expense for environmental matters	546	99
Portion of environmental accruals covered by insurance policy	6,175
Maximum losses covered for remediation costs under 2002 insurance policy	12,911
Cumulative remediation costs for which payment has been received under 2002 insurance policy	6,736
Maximum losses covered for third-party claims under 2002 insurance policy	10,000
Maximum losses covered for facilities acquired after 2002	15,000
Self-insurance [Abstract]
Workers' compensation liability	4,863		5,141
Workers' compensation liability, difference between discounted and undiscounted amount	25		20
Liability for medical and dental benefits for active and disabled employees	4,288		3,848
Liability for medical and dental benefits for active and disabled employees, difference between discounted and undiscounted amount	$ 296		$ 296

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Supplemental guarantor financial information

6 Months Ended

Jun. 30, 2012

Supplemental guarantor financial information [Abstract]

Supplemental guarantor financial information

Supplemental guarantor financial information

In March 2011, we issued $200,000 of long-term notes due March 15, 2019. The notes were issued under 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. These notes are jointly and severally guaranteed on a full and unconditional basis, subject to the release provisions described herein, by certain 100%-owned subsidiaries that guarantee any of our other indebtedness. These subsidiaries also guarantee our obligations under our credit facility and our long-term notes due in 2015. The subsidiary guarantees with respect to the notes due in March 2019 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 made certain immaterial corrections to the 2011 information presented for the guarantor subsidiaries and the non-guarantor subsidiaries. The corrections resulted in an increase in revenue of the guarantor subsidiaries, with a corresponding decrease in revenue of the non-guarantor subsidiaries. Corrections to related expense amounts and the resulting corrections to the condensed consolidating statement of cash flows were also recorded. In addition, the presentation of deferred income taxes as of December 31, 2011 for Deluxe Corporation was modified to conform to the current year presentation. These corrections had no impact on our consolidated financial statements.

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

	June 30, 2012
	Deluxe Corporation			Guarantor subsidiaries		Non-guarantor subsidiaries			Eliminations			Total
ASSETS
Current Assets:
Cash and cash equivalents	$	19,956		$	5,064	$	20,111		$	—		$	45,131
Trade accounts receivable, net	—			57,005		12,278			—			69,283
Inventories and supplies	—			21,589		2,224			—			23,813
Deferred income taxes	—			6,592		758			(541		)	6,809
Funds held for customers	—			—		42,000			—			42,000
Other current assets	14,755			14,104		5,188			—			34,047
Total current assets	34,711			104,354		82,559			(541		)	221,083
Long-Term Investments	37,063			9,063		—			—			46,126
Property, Plant And Equipment, net	—			91,290		16,933			—			108,223
Intangibles, net	—			159,681		1,810			—			161,491
Goodwill	—			787,779		1,963			—			789,742
Deferred Income Taxes	25,007			—		—			(25,007		)	—
Investments In Consolidated Subsidiaries	1,401,308			20,688		—			(1,421,996		)	—
Intercompany (Payable) Receivable	(380,835		)	420,384		(39,549		)	—			—
Other Non-Current Assets	12,177			67,789		15,563			—			95,529
Total Assets	$	1,129,431		$	1,661,028	$	79,279		$	(1,447,544	)	$	1,422,194
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	11,656		$	44,669	$	4,380		$	—		$	60,705
Accrued liabilities	12,841			81,947		48,196			—			142,984
Deferred income taxes	541			—		—			(541		)	—
Long-term debt due within one year	85,296			—		—			—			85,296
Total current liabilities	110,334			126,616		52,576			(541		)	288,985
Long-Term Debt	656,847			—		—			—			656,847
Deferred Income Taxes	—			76,085		3,187			(25,007		)	54,265
Other Non-Current Liabilities	3,333			57,019		2,828			—			63,180
Total Shareholders' Equity	358,917			1,401,308		20,688			(1,421,996		)	358,917
Total Liabilities And Shareholders' Equity	$	1,129,431		$	1,661,028	$	79,279		$	(1,447,544	)	$	1,422,194

Deluxe Corporation

Condensed Consolidating Balance Sheet

	December 31, 2011
	Deluxe Corporation			Guarantor subsidiaries		Non-guarantor subsidiaries			Eliminations			Total
ASSETS
Current Assets:
Cash and cash equivalents	$	3,047		$	1,522	$	24,118		$	—		$	28,687
Trade accounts receivable, net	—			57,463		11,560			—			69,023
Inventories and supplies	—			19,941		2,102			—			22,043
Deferred income taxes	1,035			5,430		751			—			7,216
Funds held for customers	—			—		44,394			—			44,394
Other current assets	5,851			10,469		4,892			—			21,212
Total current assets	9,933			94,825		87,817			—			192,575
Long-Term Investments	36,338			8,809		—			—			45,147
Property, Plant And Equipment, net	—			96,345		17,066			—			113,411
Assets Held For Sale	—			2,741		—			—			2,741
Intangibles, net	—			155,452		1,887			—			157,339
Goodwill	—			775,044		1,954			—			776,998
Deferred Income Taxes	27,471			—		—			(27,471		)	—
Investments In Consolidated Subsidiaries	1,307,149			15,478		—			(1,322,627		)	—
Intercompany (Payable) Receivable	(316,876		)	360,789		(43,913		)	—			—
Other Non-Current Assets	11,758			72,944		15,896			—			100,598
Total Assets	$	1,075,773		$	1,582,427	$	80,707		$	(1,350,098	)	$	1,388,809
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	13,401		$	44,908	$	6,385		$	—		$	64,694
Accrued liabilities	12,272			86,001		51,825			—			150,098
Long-term debt due within one year	85,575			—		—			—			85,575
Total current liabilities	111,248			130,909		58,210			—			300,367
Long-Term Debt	656,131			—		—			—			656,131
Deferred Income Taxes	—			74,133		3,145			(27,471		)	49,807
Other Non-Current Liabilities	5,705			70,236		3,874			—			79,815
Total Shareholders' Equity	302,689			1,307,149		15,478			(1,322,627		)	302,689
Total Liabilities And Shareholders' Equity	$	1,075,773		$	1,582,427	$	80,707		$	(1,350,098	)	$	1,388,809

Deluxe Corporation

Condensed Consolidating Statement of Comprehensive Income

	Quarter Ended June 30, 2012
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Eliminations			Total
Revenue	$	2,135		$	335,213		$	67,714		$	(34,048	)	$	371,014
Cost of goods sold	—			(118,791		)	(39,105		)	30,302			(127,594		)
Gross Profit	2,135			216,422			28,609			(3,746		)	243,420
Operating expenses	(998		)	(149,141		)	(23,451		)	3,746			(169,844		)
Operating Income	1,137			67,281			5,158			—			73,576
Interest expense	(11,339		)	(3,345		)	(407		)	3,735			(11,356		)
Other income	3,337			569			146			(3,735		)	317
(Loss) Income Before Income Taxes	(6,865		)	64,505			4,897			—			62,537
Income tax benefit (provision)	3,884			(21,218		)	(2,941		)	—			(20,275		)
(Loss) Income Before Equity In Earnings Of Consolidated Subsidiaries	(2,981		)	43,287			1,956			—			42,262
Equity in earnings of consolidated subsidiaries	45,243			1,956			—			(47,199		)	—
Net Income	$	42,262		$	45,243		$	1,956		$	(47,199	)	$	42,262
Comprehensive Income	$	42,183		$	44,879		$	1,185		$	(46,064	)	$	42,183

Deluxe Corporation

Condensed Consolidating Statement of Comprehensive Income

	Quarter Ended June 30, 2011
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Eliminations			Total
Revenue	$	2,128		$	312,009		$	67,281		$	(35,144	)	$	346,274
Cost of goods sold	—			(111,685		)	(39,835		)	30,833			(120,687		)
Gross Profit	2,128			200,324			27,446			(4,311		)	225,587
Operating expenses	(2,333		)	(141,411		)	(22,168		)	4,311			(161,601		)
Operating (Loss) Income	(205		)	58,913			5,278			—			63,986
Interest expense	(12,006		)	(3,079		)	(431		)	3,462			(12,054		)
Other income (expense)	3,057			128			208			(3,462		)	(69		)
(Loss) Income Before Income Taxes	(9,154		)	55,962			5,055			—			51,863
Income tax benefit (provision)	4,209			(20,094		)	(505		)	—			(16,390		)
(Loss) Income Before Equity In Earnings Of Consolidated Subsidiaries	(4,945		)	35,868			4,550			—			35,473
Equity in earnings of consolidated subsidiaries	40,418			4,550			—			(44,968		)	—
Net Income	$	35,473		$	40,418		$	4,550		$	(44,968	)	$	35,473
Comprehensive Income	$	36,365		$	41,029		$	4,917		$	(45,946	)	$	36,365

Deluxe Corporation

Condensed Consolidating Statement of Comprehensive Income

	Six Months Ended June 30, 2012
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Eliminations			Total
Revenue	$	4,233		$	677,015		$	139,742		$	(71,994	)	$	748,996
Cost of goods sold	—			(237,151		)	(82,638		)	64,707			(255,082		)
Gross Profit	4,233			439,864			57,104			(7,287		)	493,914
Operating expenses	(3,370		)	(298,846		)	(47,384		)	7,287			(342,313		)
Operating Income	863			141,018			9,720			—			151,601
Interest expense	(23,006		)	(5,607		)	(693		)	6,253			(23,053		)
Other income	5,700			315			594			(6,253		)	356
(Loss) Income Before Income Taxes	(16,443		)	135,726			9,621			—			128,904
Income tax benefit (provision)	8,642			(46,778		)	(4,427		)	—			(42,563		)
(Loss) Income Before Equity In Earnings Of Consolidated Subsidiaries	(7,801		)	88,948			5,194			—			86,341
Equity in earnings of consolidated subsidiaries	94,142			5,194			—			(99,336		)	—
Net Income	$	86,341		$	94,142		$	5,194		$	(99,336	)	$	86,341
Comprehensive Income	$	87,793		$	95,026		$	5,263		$	(100,289	)	$	87,793

Deluxe Corporation

Condensed Consolidating Statement of Comprehensive Income

	Six Months ended June 30, 2011
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Eliminations			Total
Revenue	$	4,256		$	626,710		$	137,622		$	(72,562	)	$	696,026
Cost of goods sold	—			(223,129		)	(81,371		)	63,651			(240,849		)
Gross Profit	4,256			403,581			56,251			(8,911		)	455,177
Operating expenses	(6,785		)	(281,183		)	(44,679		)	8,911			(323,736		)
Operating (Loss) Income	(2,529		)	122,398			11,572			—			131,441
Loss on early debt extinguishment	(6,995		)	—			—			—			(6,995		)
Interest expense	(24,011		)	(5,256		)	(725		)	5,900			(24,092		)
Other income	4,821			587			578			(5,900		)	86
(Loss) Income Before Income Taxes	(28,714		)	117,729			11,425			—			100,440
Income tax benefit (provision)	12,311			(42,273		)	(2,449		)	—			(32,411		)
(Loss) Income Before Equity In Earnings Of Consolidated Subsidiaries	(16,403		)	75,456			8,976			—			68,029
Equity in earnings of consolidated subsidiaries	84,432			8,976			—			(93,408		)	—
Net Income	$	68,029		$	84,432		$	8,976		$	(93,408	)	$	68,029
Comprehensive Income	$	70,480		$	85,842		$	9,901		$	(95,743	)	$	70,480

Deluxe Corporation

Condensed Consolidating Statement of Cash Flows

	Six Months Ended June 30, 2012
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Total
Net Cash (Used) Provided By Operating Activities	$	(13,374	)	$	110,323		$	2,960		$	99,909
Cash Flows From Investing Activities:
Purchases of capital assets	—			(16,192		)	(1,142		)	(17,334		)
Payments for acquisitions, net of cash acquired	—			(26,634		)	(1,825		)	(28,459		)
Loans to distributors	—			(3,090		)	(60		)	(3,150		)
Other	196			2,659			356			3,211
Net cash provided (used) by investing activities	196			(43,257		)	(2,671		)	(45,732		)
Cash Flows From Financing Activities:
Payments for debt issue costs	(1,163		)	—			—			(1,163		)
Change in book overdrafts	(2,492		)	(160		)	—			(2,652		)
Proceeds from issuing shares under employee plans	2,873			—			—			2,873
Excess tax benefit from share-based employee awards	443			—			—			443
Payments for common shares repurchased	(11,999		)	—			—			(11,999		)
Cash dividends paid to shareholders	(25,423		)	—			—			(25,423		)
Advances from (to) consolidated subsidiaries	67,848			(63,364		)	(4,484		)	—
Net cash provided (used) by financing activities	30,087			(63,524		)	(4,484		)	(37,921		)
Effect Of Exchange Rate Change On Cash	—			—			188			188
Net Change In Cash And Cash Equivalents	16,909			3,542			(4,007		)	16,444
Cash And Cash Equivalents: Beginning Of Period	3,047			1,522			24,118			28,687
End of Period	$	19,956		$	5,064		$	20,111		$	45,131

Deluxe Corporation

Condensed Consolidating Statement of Cash Flows

	Six Months ended June 30, 2011
	Deluxe Corporation			Guarantor subsidiaries			Non-guarantor subsidiaries			Total
Net Cash (Used) Provided By Operating Activities	$	(851	)	$	101,479		$	3,554		$	104,182
Cash Flows From Investing Activities:
Purchases of capital assets	—			(18,791		)	(505		)	(19,296		)
Payments for acquisitions, net of cash acquired	—			(35,000		)	(1,754		)	(36,754		)
Other	(170		)	683			227			740
Net cash used by investing activities	(170		)	(53,108		)	(2,032		)	(55,310		)
Cash Flows From Financing Activities:
Net proceeds from short-term debt	6,000			—			—			6,000
Payments on long-term debt, including costs of debt reacquisition	(215,030		)	—			—			(215,030		)
Proceeds from issuing long-term debt	200,000			—			—			200,000
Payments for debt issue costs	(3,429		)	—			—			(3,429		)
Change in book overdrafts	(765		)	(140		)	—			(905		)
Proceeds from issuing shares under employee plans	6,514			—			—			6,514
Excess tax benefit from share-based employee awards	1,313			—			—			1,313
Payments for common shares repurchased	(17,986		)	—			—			(17,986		)
Cash dividends paid to shareholders	(25,663		)	—			—			(25,663		)
Advances from (to) consolidated subsidiaries	47,455			(47,706		)	251			—
Net cash (used) provided by financing activities	(1,591		)	(47,846		)	251			(49,186		)
Effect Of Exchange Rate Change On Cash	—			—			557			557
Net Change In Cash And Cash Equivalents	(2,612		)	525			2,330			243
Cash And Cash Equivalents: Beginning Of Period	3,197			683			13,503			17,383
End of Period	$	585		$	1,208		$	15,833		$	17,626

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Derivative financial instruments (Tables)

6 Months Ended

Jun. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest rate swaps

Information regarding interest rate swaps as of June 30, 2012 was as follows:

	Notional amount		Fair value of interest rate swaps		Increase in debt due to fair value adjustment
Fair value hedge related to long-term debt due in 2012	$	84,847	$	913	$	474
Fair value hedge related to long-term debt due in 2014	198,000		4,190		3,475
Total fair value hedges	$	282,847	$	5,103	$	3,949

Information regarding interest rate swaps as of December 31, 2011 was as follows:

	Notional amount		Fair value of interest rate swaps		Increase in debt due to fair value adjustment
Fair value hedge related to long-term debt due in 2012	$	84,847	$	1,309	$	780
Fair value hedge related to long-term debt due in 2014	198,000		3,230		2,788
Total fair value hedges	$	282,847	$	4,539	$	3,568

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Debt (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended			1 Months Ended	3 Months Ended			1 Months Ended	3 Months Ended				1 Months Ended	3 Months Ended						1 Months Ended	3 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Oct. 31, 2004 Senior, unsecured notes due 2014 [Member]	Jun. 30, 2012 Senior, unsecured notes due 2014 [Member]	Mar. 31, 2011 Senior, unsecured notes due 2014 [Member]	Dec. 31, 2011 Senior, unsecured notes due 2014 [Member]	May 31, 2007 Senior notes due 2015 [Member]	Jun. 30, 2012 Senior notes due 2015 [Member]	Dec. 31, 2011 Senior notes due 2015 [Member]	Jun. 30, 2012 Senior notes due 2015 [Member] First optional redemption period [Member]	Jun. 30, 2012 Senior notes due 2015 [Member] Mandatory redemption [Member]	Mar. 31, 2011 Senior notes due 2019 [Member]	Jun. 30, 2012 Senior notes due 2019 [Member]	Dec. 31, 2011 Senior notes due 2019 [Member]	Jun. 30, 2012 Senior notes due 2019 [Member] First optional redemption period [Member]	Jun. 30, 2012 Senior notes due 2019 [Member] Second optional redemption period [Member]	Jun. 30, 2012 Senior notes due 2019 [Member] Third optional redemption period [Member]	Jun. 30, 2012 Senior notes due 2019 [Member] Mandatory redemption [Member]	Dec. 31, 2002 Senior, unsecured notes due 2012 [Member]	Jun. 30, 2012 Senior, unsecured notes due 2012 [Member]	Mar. 31, 2011 Senior, unsecured notes due 2012 [Member]	Dec. 31, 2011 Senior, unsecured notes due 2012 [Member]
Debt instruments [Line Items]
Long-term portion of debt	$ 656,847		$ 656,847		$ 656,131		$ 256,847		$ 256,131		$ 200,000	$ 200,000				$ 200,000	$ 200,000
Long-term debt due within one year	85,296		85,296		85,575																		85,296		85,575
Total debt	742,143		742,143		741,706
Increase in debt due to fair value adjustment	3,949		3,949		3,568		3,475		2,788														474		780
Debt issuance date						Oct. 01, 2004				May 31, 2007					Mar. 15, 2011							Dec. 15, 2002
Principal amount issued						275,000				200,000					200,000							300,000
Stated interest rate (in hundredths)							5.125%				7.375%					7.00%							5.00%
Debt maturity date							Oct. 01, 2014				Jun. 01, 2015					Mar. 15, 2019							Dec. 15, 2012
Principal amount authorized under shelf registration																							300,000
Redemption period																		prior to March 15, 2014	prior to March 15, 2015	on or after March 15, 2015
Notes redeemable during redemption period (in hundredths)																		35.00%
Redemption price (in hundredths)														101.00%				107.00%	100.00%		101.00%
Redemption price, minimum (in hundredths)													100.00%							100.00%
Redemption price, maximum (in hundredths)													103.688%							103.50%
Principal amount retired								10,000																195,463
Pre-tax loss from extinguishment of debt	0	0	0	6,995				185																6,810
Proceeds from offering, net of offering costs						272,276				196,329					196,195							295,722
Remaining principal amount outstanding							253,500																84,847
Fair value of notes outstanding							$ 256,035				$ 211,000					$ 212,000							$ 85,934

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Acquisitions (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended		3 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 OrangeSoda, Inc. [Member]	Jun. 30, 2012 OrangeSoda, Inc. [Member] Customer relationships [Member]	Jun. 30, 2012 OrangeSoda, Inc. [Member] Internal-use software [Member]	Jun. 30, 2012 OrangeSoda, Inc. [Member] Trade name [Member]	Jun. 30, 2012 Small business distributors [Member]
Acquisitions [Line Items]
Payments for acquisitions, net of cash acquired	$ 28,459	$ 36,754	$ 26,634				$ 1,825
Goodwill recorded at acquisition			12,735
Acquired intangible asset amount				$ 10,200	$ 3,300	$ 900
Acquired intangible asset useful life				9 years	5 years	5 years

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CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) (USD $) In Thousands	Total	Common shares par value [Member]	Additional paid-in capital [Member]	Retained earnings [Member]	Accumulated other comprehensive loss [Member]
Balance at Dec. 31, 2011	$ 302,689	$ 50,826	$ 55,838	$ 255,426	$ (59,401)
Net income	86,341	0	0	86,341	0
Cash dividends	(25,423)	0	0	(25,423)	0
Common shares issued	3,264	249	3,015	0	0
Tax impact of share-based awards	170	0	170	0	0
Common shares repurchased	(11,999)	(509)	(11,490)	0	0
Other common shares retired	(620)	(25)	(595)	0	0
Fair value of share-based compensation	3,043	0	3,043	0	0
Other comprehensive income (Note 12)	1,452	0	0	0	1,452
Balance at Jun. 30, 2012	$ 358,917	$ 50,541	$ 49,981	$ 316,344	$ (57,949)

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Supplemental balance sheet information

6 Months Ended

Jun. 30, 2012

Balance Sheet Related Disclosures [Abstract]

Supplemental balance sheet information

Supplemental balance sheet information

Inventories and supplies – Inventories and supplies were comprised of the following:

	June 30, 2012		December 31, 2011
Raw materials	$	5,521	$	5,566
Semi-finished goods	8,653		8,273
Finished goods	6,579		5,301
Supplies, primarily production	3,060		2,903
Inventories and supplies	$	23,813	$	22,043

Available-for-sale securities – Available-for-sale securities included within cash and cash equivalents, funds held for customers and other current assets were comprised of the following:

	June 30, 2012
	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Money market securities (cash equivalents)	$	21,180	$	—	$	—	$	21,180
Canadian and provincial government securities (funds held for customers)(1)	5,277		228		—		5,505
Money market securities (other current assets)	2,024		—		—		2,024
Total available-for-sale securities	$	28,481	$	228	$	—	$	28,709

⁽¹⁾ Funds held for customers, as reported on the consolidated balance sheet as of June 30, 2012, also included cash of $36,495.

	December 31, 2011
	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Money market securities	$	3	$	—	$	—	$	3
Canadian and provincial government securities	5,172		243		—		5,415
Available-for-sale securities (funds held for customers)(1)	5,175		243		—		5,418
Money market securities (other current assets)	2,001		—		—		2,001
Total available-for-sale securities	$	7,176	$	243	$	—	$	7,419

⁽¹⁾ Funds held for customers, as reported on the consolidated balance sheet as of December 31, 2011, also included cash of $38,976.

Expected maturities of available-for-sale securities as of June 30, 2012 were as follows:

	Fair value
Due in one year or less	$	23,280
Due in two to five years	1,905
Due in six to ten years	3,524
Total available-for-sale securities	$	28,709

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

Assets held for sale – Assets held for sale as of December 31, 2011 consisted of our facility located in Thorofare, New Jersey, which was closed in April 2009. This facility was sold during the quarter ended June 30, 2012 for net cash proceeds of $2,613, realizing a net pre-tax loss of $128.

Intangibles – Intangibles were comprised of the following:

	June 30, 2012							December 31, 2011
	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	427,030		(361,214		)	65,816		410,905		(345,145		)	65,760
Customer lists/relationships	58,872		(25,873		)	32,999		52,542		(26,059		)	26,483
Distributor contracts	30,900		(29,098		)	1,802		30,900		(28,198		)	2,702
Trade names	68,561		(28,017		)	40,544		67,661		(25,958		)	41,703
Other	8,500		(7,270		)	1,230		9,566		(7,975		)	1,591
Amortizable intangibles	593,863		(451,472		)	142,391		571,574		(433,335		)	138,239
Intangibles	$	612,963	$	(451,472	)	$	161,491	$	590,674	$	(433,335	)	$	157,339

Total amortization of intangibles was $11,315 for the quarter ended June 30, 2012 and $13,515 for the quarter ended June 30, 2011. Amortization of intangibles was $23,304 for the six months ended June 30, 2012 and $28,099 for the six months ended June 30, 2011. Based on the intangibles in service as of June 30, 2012, estimated future amortization expense is as follows:

	Estimated amortization expense
Remainder of 2012	$	21,415
2013	34,218
2014	22,156
2015	10,906
2016	7,728

Goodwill – Changes in goodwill during the six months ended June 30, 2012 were as follows:

	Small Business Services			Financial Services		Direct Checks		Total
Balance, December 31, 2011:
Goodwill, gross	$	621,314		$	27,178	$	148,506	$	796,998
Accumulated impairment charges	(20,000		)	—		—		(20,000		)
Goodwill, net of accumulated impairment charges	601,314			27,178		148,506		776,998
Acquisition of OrangeSoda, Inc. (see Note 5)	12,735			—		—		12,735
Currency translation adjustment	9			—		—		9
Balance, June 30, 2012:
Goodwill, gross	634,058			27,178		148,506		809,742
Accumulated impairment charges	(20,000		)	—		—		(20,000		)
Goodwill, net of accumulated impairment charges	$	614,058		$	27,178	$	148,506	$	789,742

Other non-current assets – Other non-current assets were comprised of the following:

	June 30, 2012		December 31, 2011
Contract acquisition costs	$	48,906	$	55,076
Loans and notes receivable from distributors	14,314		11,148
Deferred advertising costs	14,043		15,599
Other	18,266		18,775
Other non-current assets	$	95,529	$	100,598

Changes in contract acquisition costs during the six months ended June 30, 2012 and 2011 were as follows:

	Six Months Ended June 30,
	2012			2011
Balance, beginning of year	$	55,076		$	57,476
Additions(1)	2,668			1,770
Amortization	(8,546		)	(8,665		)
Other	(292		)	(170		)
Balance, end of period	$	48,906		$	50,411

⁽¹⁾ Contract acquisition costs are accrued upon contract execution. Cash payments made for contract acquisition costs were $10,516 for the six months ended June 30, 2012 and $5,615 for the six months ended June 30, 2011.

Accrued liabilities – Accrued liabilities were comprised of the following:

	June 30, 2012		December 31, 2011
Funds held for customers	$	41,284	$	43,829
Employee profit sharing/cash bonus	22,297		23,783
Customer rebates	20,122		20,969
Wages, including vacation	12,657		4,995
Interest	8,737		8,760
Contract acquisition costs due within one year	5,152		13,070
Restructuring due within one year (see Note 8)	3,766		5,946
Other	28,969		28,746
Accrued liabilities	$	142,984	$	150,098

Other non-current liabilities – Other non-current liabilities were comprised of the following:

	June 30, 2012		December 31, 2011
Pension and postretirement benefit plans	$	36,458	$	48,859
Contract acquisition costs	7,305		7,455
Unrecognized tax benefits, including interest and penalties	6,750		7,570
Other	12,667		15,931
Other non-current liabilities	$	63,180	$	79,815

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Fair value measurements (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Abstract]

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 comprehensive income and were as follows:

	Quarter Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Gain (loss) from derivatives	$	322		$	771		$	563		$	(274	)
Loss from change in fair value of hedged debt	(288		)	(928		)	(769		)	(323		)
Net decrease (increase) in interest expense	$	34		$	(157	)	$	(206	)	$	(597	)

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 June 30, 2012		Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
			(Level 1)		(Level 2)		(Level 3)
Marketable securities (cash equivalents)	$	21,180	$	21,180	$	—	$	—
Marketable securities (funds held for customers)	5,505		—		5,505		$	—
Marketable securities (other current assets)	2,024		—		2,024		—
Long-term investment in mutual funds	2,035		2,035		—		—
Derivative assets	5,103		—		5,103		—

			Fair value measurements using
	Fair value as of December 31, 2011		Quoted prices in active markets for identical assets		Significant other observableinputs		Significant unobservable inputs
			(Level 1)		(Level 2)		(Level 3)
Marketable securities (funds held for customers)	$	5,418	$	—	$	5,418	$	—
Marketable securities (other current assets)	2,001		—		2,001		—
Long-term investment in mutual funds	2,165		2,165		—		—
Derivative assets	4,539		—		4,539		—

Estimated fair value of other financial instruments

The estimated fair values of these financial instruments were as follows:

					Fair value measurements using
	June 30, 2012				Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
	Carrying value		Fair value		(Level 1)		(Level 2)		(Level 3)
Cash	$	23,951	$	23,951	$	23,951	$	—	$	—
Cash (funds held for customers)	36,495		36,495		36,495		—		—
Loans and notes receivable from distributors	15,563		14,055		—		—		14,055
Long-term debt, including portion due within one year	742,143		764,969		764,969		—		—

					Fair value measurements using
	December 31, 2011				Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
	Carrying value		Fair value		(Level 1)		(Level 2)		(Level 3)
Cash	$	28,687	$	28,687	$	28,687	$	—	$	—
Cash (funds held for customers)	38,976		38,976		38,976		—		—
Loans and notes receivable from distributors	11,940		10,616		—		—		10,616
Long-term debt, including portion due within one year	741,706		738,157		544,657		193,500		—

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Supplemental balance sheet information (goodwill) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Goodwill [Roll Forward]
Goodwill, gross, beginning of year	$ 796,998
Accumulated impairment charges, beginning of year	(20,000)
Goodwill, net of accumulated impairment charges, beginning of year	776,998
Acqusition of OrangeSoda, Inc. (see Note 5)	12,735
Currency translation adjustment	9
Goodwill, gross, end of period	809,742
Accumulated impairment charges, end of period	(20,000)
Goodwill, net of accumulated impairment charges, end of period	789,742
Small Business Services [Member]
Goodwill [Roll Forward]
Goodwill, gross, beginning of year	621,314
Accumulated impairment charges, beginning of year	(20,000)
Goodwill, net of accumulated impairment charges, beginning of year	601,314
Acqusition of OrangeSoda, Inc. (see Note 5)	12,735
Currency translation adjustment	9
Goodwill, gross, end of period	634,058
Accumulated impairment charges, end of period	(20,000)
Goodwill, net of accumulated impairment charges, end of period	614,058
Financial Services [Member]
Goodwill [Roll Forward]
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
Acqusition of OrangeSoda, Inc. (see Note 5)	0
Currency translation adjustment	0
Goodwill, gross, end of period	27,178
Accumulated impairment charges, end of period	0
Goodwill, net of accumulated impairment charges, end of period	27,178
Direct Checks [Member]
Goodwill [Roll Forward]
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
Acqusition of OrangeSoda, Inc. (see Note 5)	0
Currency translation adjustment	0
Goodwill, gross, end of period	148,506
Accumulated impairment charges, end of period	0
Goodwill, net of accumulated impairment charges, end of period	$ 148,506

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Business segment information

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Business segment information

Note 13: 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 mail and the internet, referrals from financial institutions and telecommunications clients, a network of distributors and dealers, and a direct sales force which focuses on major accounts. These efforts are supplemented by the account development efforts of an outbound telemarketing group. Financial Services' products and services are sold through multiple channels, including a direct sales force, to financial institution clients nationwide, including banks, credit unions and financial services companies. Direct Checks sells products and services directly to consumers using direct response marketing via mail and the internet. All three segments operate primarily in the United States. Small Business Services also has operations in Canada and portions of Europe. 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 47.2% of our Small Business Services segment's revenue in 2011.

Forms – Our Small Business Services segment provides printed forms to small businesses, including 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 produced by our Financial Services and Direct Checks segments include deposit tickets and check registers.

Accessories and other products – Small Business Services produces products designed to provide small business owners with the customized documents necessary to efficiently manage their business including envelopes, office supplies, stamps and labels, as well as retail packaging supplies. Our Financial Services and Direct Checks segments offer check book covers and stamps.

Marketing solutions – All three of our segments offer products and services that help small businesses and financial institutions promote their businesses and acquire customers. Our Small Business Services segment offers services such as web design, hosting and other web services, logo design, search engine optimization and marketing, and digital printing services designed to fulfill the sales and marketing needs of small businesses, as well as products such as business cards, greeting cards, brochures and apparel. Financial Services offers various customer acquisition programs and marketing communications services, while Direct Checks provides package insert programs under which companies' marketing materials are included in our check packages.

Other services – All three of our segments provide fraud protection services. In addition, our Small Business Services segment offers payroll services, and Financial Services provides financial institution profitability, regulatory and compliance programs.

The accounting policies of the segments are the same as those described in the Notes to Consolidated Financial Statements included in the 2011 Form 10-K. 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.

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 quarters ended June 30, 2012 and 2011:

		Reportable Business Segments
		Small Business Services		Financial Services		Direct Checks		Corporate		Consolidated
Revenue from external customers:	2012	$	233,088	$	85,664	$	52,262	$	—	$	371,014
	2011	203,156		86,656		56,462		—		346,274
Operating income:	2012	38,241		19,981		15,354		—		73,576
	2011	34,329		13,214		16,443		—		63,986
Depreciation and amortization	2012	11,017		3,021		2,299		—		16,337
expense:	2011	11,398		3,412		4,130		—		18,940
Total assets:	2012	860,819		93,928		171,222		296,225		1,422,194
	2011	778,740		96,847		173,928		285,461		1,334,976
Capital asset purchases:	2012	—		—		—		8,338		8,338
	2011	—		—		—		10,874		10,874

The following is our segment information as of and for the six months ended June 30, 2012 and 2011:

		Reportable Business Segments
		Small Business Services		Financial Services		Direct Checks		Corporate		Consolidated
Revenue from external customers:	2012	$	462,684	$	176,257	$	110,055	$	—	$	748,996
	2011	403,159		174,670		118,197		—		696,026
Operating income:	2012	77,015		41,902		32,684		—		151,601
	2011	70,099		28,911		32,431		—		131,441
Depreciation and amortization	2012	22,404		6,275		4,755		—		33,434
expense:	2011	22,533		6,165		9,985		—		38,683
Total assets:	2012	860,819		93,928		171,222		296,225		1,422,194
	2011	778,740		96,847		173,928		285,461		1,334,976
Capital asset purchases:	2012	—		—		—		17,334		17,334
	2011	—		—		—		19,296		19,296