Shutterfly 2013 Annual Report Download - page 81

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The following weighted-average outstanding stock options and restricted stock units were excluded
from the computation of diluted net income per common share for the periods presented because
including them would have had an anti-dilutive effect (in thousands):
Year ended December 31,
2013 2012 2011
Stock options and restricted stock units ................. 24 748 278
Comprehensive Income
Comprehensive income is defined as the change in equity of a business enterprise during a period from
transactions and other events and circumstances from non-owner sources. Comprehensive income is
composed of net income. Accordingly, the accompanying consolidated statements of income reflect all
changes in comprehensive income.
Segment Reporting
The Company reports as one operating segment with the Chief Executive Officer (‘‘CEO’’) acting as
the Company’s chief operating decision maker. The Company’s CEO reviews financial information
presented on a consolidated basis for purposes of allocating resources and evaluating financial
performance. The Company has a single reporting unit and there are no segment managers who are held
accountable for operations, operating results or components below the consolidated unit level.
Net revenues by Consumer and Enterprise categories were as follows:
Year ended December 31,
2013 2012 2011
(in thousands)
Net revenues
Consumer ..................................... $ 745,969 $ 613,445 $ 459,725
Enterprise ..................................... 37,673 27,179 13,545
Total net revenues ................................ $ 783,642 $ 640,624 $ 473,270
Recent Accounting Pronouncements
In 2013, the FASB issued a new accounting standard that will require the presentation of certain
unrecognized tax benefits as reductions to deferred tax assets rather than as liabilities in the Consolidated
Balance Sheets when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward
exists. The new standard requires adoption on a prospective basis in the first quarter of 2015; however,
early adoption is permitted. The Company does not anticipate that this adoption will have a significant
impact on its financial position, results of operations, or cash flows.
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