Vistaprint 2012 Annual Report Download - page 63

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VISTAPRINT N.V.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Years Ended June 30, 2012, 2011 and 2010
(in thousands, except share and per share data)
1. Description of the Business
The Vistaprint group of companies offers micro businesses the ability to market their businesses with a
broad range of brand identity and promotional products, marketing services and digital solutions. Through the use of
proprietary Internet-based graphic design software, localized websites, proprietary order receiving and processing
technologies and advanced computer integrated production facilities, we offer a broad spectrum of products, such
as business cards, website hosting, apparel, signage, promotional gifts, brochures, online marketing and creative
services. We focus on serving the marketing, graphic design and printing needs of the micro business market,
generally businesses or organizations with fewer than 10 employees and usually 2 or fewer. We also provide
personalized products for home and family use.
Change of Domicile
On August 30, 2009, we moved our place of incorporation of the publicly traded parent entity of the
Vistaprint group of companies from Bermuda to the Netherlands. Vistaprint N.V. was formed as a limited liability
company (naamloze vennootschap) under the laws of the Netherlands. Pursuant to a scheme of arrangement under
Bermuda law approved by the common shareholders of Vistaprint Limited, among other things, each common share
of Vistaprint Limited was exchanged for one ordinary share of Vistaprint N.V. This change of domicile was
accounted for as a merger between entities under common control and as a result all historical share information
has been restated to reflect its impact. The historical financial statements of Vistaprint Limited for periods prior to
this transaction are considered to be the historical financial statements of Vistaprint N.V.
2. Summary of Significant Accounting Policies
Principles of Consolidation
The consolidated financial statements include the accounts of Vistaprint N.V., its wholly owned subsidiaries,
and those entities in which we have a variable interest and are the primary beneficiary. Intercompany balances and
transactions have been eliminated.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles
(“GAAP”), requires management to make estimates and assumptions that affect the amounts reported in the
consolidated financial statements and accompanying notes. We believe our most significant estimates are
associated with the ongoing evaluation of our long-lived assets and goodwill, advertising expense and related
accruals, share-based compensation, accounting for business combinations, income taxes, and litigation and
contingencies, among others. By their nature, estimates are subject to an inherent degree of uncertainty. Actual
results could differ from those estimates.
Cash, Cash Equivalents and Marketable Securities
We consider all highly liquid investments purchased with an original maturity of three months or less to be
the equivalent of cash for the purpose of balance sheet and statement of cash flows presentation. Cash equivalents
consist of money market funds. Cash and cash equivalents restricted for use were $906 and $1,205 as of June 30,
2012 and 2011, respectively, and are included in other assets in the accompanying consolidated balance sheets.
Marketable securities, when held, consist primarily of investment-grade corporate bonds, U.S. government
agency issues, and certificates of deposit. Our marketable securities are classified as “available-for-sale securities”
and carried at fair value, with the unrealized gains and losses reported as a separate component of accumulated
other comprehensive (loss) income. The cost of securities sold is based on the specific identification method.
Form 10-K