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