Vistaprint 2012 Annual Report Download - page 69

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65
present reclassifications from OCI to net income on the face of the financial statements and require that
reclassification adjustments be disclosed in the notes to the financial statements, consistent with the existing
disclosure requirements. The deferral does not change the other requirements. The adoption of this ASU did not
have a material effect on our financial position or results of operations.
Effective January 1, 2012, we elected to early adopt ASU 2011-08 Testing Goodwill for Impairment, which
provides updated guidance on the periodic testing of goodwill for impairment. This new standard allows companies
to assess qualitative factors to determine if it is more likely than not that goodwill might be impaired and whether it is
necessary to perform the two-step goodwill impairment test required under current accounting standards. The
adoption of this ASU did not have a material effect on our financial position or results of operations. See discussion
under the Goodwill heading above for further details.
3. Fair Value Measurements
We use a three-level valuation hierarchy for measuring fair value and include detailed financial statement
disclosures about fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the
valuation of an asset or liability as of the measurement date. The three levels are defined as follows:
• Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities
in active markets.
• Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active
markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially
the full term of the financial instrument.
• Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value
measurement.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input
that is significant to the fair value measurement.
The following tables summarize, by major security type, our assets and liabilities that are measured at fair
value on a recurring basis and are categorized using the fair value hierarchy:
June 30, 2012
Total
Quoted Prices in
Active
Markets for
Identical Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . $62,203 $ 62,203 $ — $ —
Total assets recorded at fair value . . . . . . . . . . . . . . . $62,203 $ 62,203 $ — $ —
Liabilities
Albumprinter contingent earn-out . . . . . . . . . . . . . . . . $ 570 $ — $ — $ 570
Total liabilities recorded at fair value . . . . . . . . . . . . . $ 570 $ — $ — $ 570
June 30, 2011
Total
Quoted Prices in
Active
Markets for
Identical Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . $ 236,552 $ 236,552 $ — $ —
Auction rate security . . . . . . . . . . . . . . . . . . . . . . . . . . 529 — — 529
Total assets recorded at fair value . . . . . . . . . . . . . . . $ 237,081 $ 236,552 $ — $ 529
Form 10-KForm 10-K