Vistaprint 2006 Annual Report Download - page 83

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Table of Contents VISTAPRINT LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Years Ended June 30, 2006, 2005 and 2004
(in thousands, except share and per share data)
The following is a summary of the Company’s income before taxes by geography:
Year Ended June 30,
2006 2005 2004
U.S. $ 2,249 $ 1,698 $1,173
Non−U.S. 17,769 (17,833) 2,117
Total $20,018 $(16,135) $3,290
Significant components of the Company’s deferred tax assets and liabilities, which are primarily related to its United States subsidiary, for
income taxes consist of the following at June 30, 2006 and 2005:
Year Ended
June 30,
2006 2005
Deferred tax assets:
Net operating loss carryforwards $ 677 $ 761
Accrued expenses 179 107
R&D credit carryforwards 6 250
ITC credits and other — —
AMT credit carryforward — 17
862 1,135
Less valuation allowance: — (37)
Net deferred tax assets 862 1,098
Deferred tax liabilities:
Depreciation (133) (151)
(133) (151)
Net deferred taxes $ 729 $ 947
The current portion of the net deferred taxes at June 30, 2006 and 2005 was $294 and $630, respectively.
In assessing the realizability of deferred tax assets in accordance with SFAS No. 109, the Company considers whether it is more likely than
not that some portion or all of the deferred tax assets will not be realized. Based on the weight of available evidence at June 30, 2006,
management believes that it is more likely than not that all of its net deferred tax assets will be realized.
The reduction in the valuation allowance during fiscal 2006 of $37 was due to the utilization of net operating losses during the year which
had previously had a valuation allowance recorded against it. The deferred tax asset at June 30, 2006 was $729. The Company will continue to
assess the realization of the deferred tax assets based on operating results.
During fiscal 2005, the Company reversed a portion of its deferred tax asset valuation allowance in the amount of $420 related primarily to
net operating losses in the United States. Based upon its
80