Vistaprint 2006 Annual Report Download - page 84

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)
regular review of the recoverability of its deferred tax assets, its historical taxable income, and projected future taxable income, the Company
concluded that it was more likely than not that it would realize a portion of the U.S. deferred tax benefit and therefore the Company reversed most
of the valuation allowance that had been previously established. The remaining reduction in the valuation allowance during fiscal 2005 of $628
was primarily due to the utilization of approximately $1,127 of net operating losses during the year which had previously had a valuation allowance
recorded against it.
At June 30, 2006, the Company had U.S. federal net operating loss carryforwards of approximately $1,992 that expire on dates up to and
through the year 2021. The utilization of these net operating losses is subject to annual limitation under the change in share ownership rules of the
Internal Revenue Code.
The Company has provided for potential amounts due in various tax jurisdictions. Judgment is required in determining the Company’s
worldwide income tax expense provision. In the ordinary course of global business, there are many transactions and calculations where the
ultimate tax outcome is uncertain. Some of these uncertainties arise as a consequence of cost reimbursement arrangements among related
entities. Although the Company believes its estimates are reasonable, no assurance can be given that the final tax outcome of these matters will
not be different from that which is reflected in the Company’s historical income tax provisions and accruals. Such differences could have a material
impact on the Company’s income tax provision and operating results in the period in which such determination is made.
13. Segment Information
FASB SFAS No. 131, Disclosures about Segments of an Enterprise and Related Information, establishes standards for reporting
information regarding operating segments in annual financial statements and requires selected information of those segments to be presented in
interim financial reports issued to shareholders. Operating segments are identified as components of an enterprise about which separate discrete
financial information is available for evaluation by the chief operating decision−maker, or decision−making group, in making decisions on how to
allocate resources and assess performance. The Company’s chief operating decision maker is considered to be the team comprised of the chief
executive officer and the executive management team. The Company views its operations and manages its business as one operating segment.
Geographic Data
Revenues by geography are based on the country−specific website through which the customer’s order was transacted. The following table
sets forth revenues and long−lived assets by geographic area (in thousands):
Year Ended June 30,
2006 2005 2004
Revenues
United States $ 108,524 $ 66,138 $ 45,454
Non−United States 43,625 24,747 13,330
Total revenues $ 152,149 $ 90,885 $ 58,784
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