Vistaprint 2012 Annual Report Download - page 70

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66
During the years ended June 30, 2012 and June 30, 2011 there have been no significant transfers in and
out of Level 1, Level 2 and Level 3.
The following table presents a roll forward of assets and liabilities measured at fair value using significant
unobservable inputs (Level 3) at June 30, 2012 and 2011:
Auction rate security
Albumprinter contingent
earn-out
Balance at June 30, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 660 $ —
Redemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (100) —
Reclassification of unrealized loss to net income . . . . . . . . . . . . . . . . . 40 —
Realized loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (71) —
Balance at June 30, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 529 $ —
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 583
Redemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (529) —
Effect of currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . —(13)
Balance at June 30, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ 570
At June 30, 2011, we held one municipal auction rate security, which was redeemed under a tender offer
initiated by the issuer in fiscal 2012.
The Albumprinter earn-out payment is payable based on achieving certain operational results for calendar
year 2012, as specified in the share purchase agreement. This earn-out is measured at fair value and is based on
significant inputs not observable in the market, which represents a Level 3 measurement within the fair value
hierarchy. The valuation of contingent consideration uses assumptions and estimates to forecast a range of
outcomes and probabilities for the contingent consideration. We assess these assumptions and estimates on a
quarterly basis as additional data impacting the assumptions is obtained. Any changes in the fair value of contingent
consideration related to updated assumptions and estimates will be recognized within the consolidated statements
of operations during the period in which the change occurs.
At June 30, 2012 and 2011, the carrying amounts of cash and cash equivalents, receivables, accounts
payable, and other current liabilities approximated their estimated fair values. The carrying amount and estimated
fair value of our long-term debt was $229,000 at June 30, 2012. The estimated fair value of our long-term debt was
determined using market sources that were derived from available market information and may not be
representative of actual values that could have been or will be realized in the future.