Shutterfly 2014 Annual Report Download - page 53

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As a result, we expect to incur between $10 to $12 million in 2015 related to these restructuring and
platform efforts.
Finally, we executed against our share repurchase program which was approved in October 2012 and
increased in February 2014. During 2014, we purchased a total of 1,961,000 shares for a total repurchase
amount of $88.8 million, and expect to use the remaining approved amount under the share repurchase
program in 2015. In addition, in February 2015, our Board of Directors approved an increase to the share
repurchase program of up to $300 million in addition to amounts remaining under the previous
authorization.
Basis of Presentation
Segment Information. During the fourth quarter of 2014, we changed the way we view financial
results, make decisions and allocate resources; resulting in two reportable segments, Consumer and
Enterprise. Refer to Part II, Item 8 of this annual report on Form 10-K ‘‘Financial Statements and
Supplementary Data — Notes to Consolidated Financial Statements — Note 13 — Segment Reporting’’
for a discussion of our two operating segments. Recasted financial information and disclosures for prior
periods are provided in the table below to reflect the segment disclosures as if the current operating
structure had been in effect throughout all annual periods presented.
Net Revenues. Our net revenues are comprised of sales generated from Consumer and Enterprise
segments.
Consumer. Our Consumer revenues include sales from all of our brands and are derived from the
sale of photo-based products, such as photo books, stationery and greeting cards, other photo-based
merchandise, photo prints, and the related shipping revenues as well as rental revenue from our
BorrowLenses brand. Included in our photo-based merchandise are items such as mugs, iPhone cases,
mouse pads, desktop plaques and puzzles. Photo prints consist of wallet, 4x6, 5x7, 8x10, and large
format sizes. Revenue from advertising displayed on our websites is also included in Consumer
revenues.
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