Vistaprint 2007 Annual Report Download - page 69

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VISTAPRINT LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Years Ended June 30, 2007, 2006 and 2005
(in thousands, except share and per share data)
Marketable securities consist primarily of asset-backed securities, investment-grade corporate bonds,
U.S. government agency issues and municipal auction rate securities.
Management determines the appropriate classification of marketable securities at the time of
purchase and reevaluates such designation at each balance sheet date. Marketable securities at
June 30, 2007 are classified as “available-for-sale.” Available-for-sale securities are carried at fair
value, with the unrealized gains and losses reported in a separate component of accumulated other
comprehensive income in shareholders’ equity in the accompanying balance sheets. The cost of debt
securities that are deemed available-for-sale securities is adjusted for amortization of premiums and
accretion of discounts to maturity. Such amortization and accretion are included in other income
(expense) in the accompanying consolidated statements of operations. Realized gains and losses and
declines in value judged to be other-than-temporary on available-for-sale securities and other
investments are included in other income (expense) in the accompanying consolidated statements of
operations. The cost of securities sold is based on the specific identification method. Interest and
dividends on securities classified as available-for-sale are included in other income (expense) in the
accompanying consolidated statements of operations.
Cash, cash equivalents and marketable securities consist of the following (in thousands):
June 30,
2007 2006
Cash and cash equivalents........................................ $ 69,464 $ 64,653
Marketable securities:
Asset-backed securities ...................................... 603 499
Commercial paper ........................................... — 1,596
Corporate bonds ............................................. 12,429 10,735
Certificates of Deposit ........................................ 3,700 2,000
U.S. government agency issues ............................... 4,946 7,449
Municipal auction rate securities ............................... 16,900 21,195
Total marketable securities ............................... 38,578 43,474
Total cash, cash equivalents and marketable securities .............. $108,042 $108,127
We have not experienced any realized gains or losses on our investments in the periods
presented. Net unrealized losses at June 30, 2007 and 2006 were $13 and $52, respectively. As of
June 30, 2007, the contractual maturities for all of the Company’s available for sale securities are one
year or less.
65
Form 10-K