Vistaprint 2008 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 2008 Vistaprint annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 188

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188

VISTAPRINT LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Years Ended June 30, 2008, 2007 and 2006
(in thousands, except share and per share data)
1. Description of the Business
VistaPrint Limited, a Bermuda company (the “Company”), offers small businesses the ability to
market their business with a broad range of brand identity and promotional products, marketing
services and electronic solutions. Through the use of proprietary Internet-based graphic design
software, localized websites, proprietary order receiving and processing technologies and advanced
computer integrated printing facilities, the Company offers a broad spectrum of products ranging from
business cards and brochures to invitations and holiday cards. The Company focuses on serving the
marketing, graphic design and printing needs of the small business market, generally businesses or
organizations with fewer than 10 employees. The Company also provides graphic design services and
printed products to the consumer market.
2. Summary of Significant Accounting Policies
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its wholly owned
subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting
principles requires management to make estimates and assumptions that affect the amounts reported
in the consolidated financial statements and accompanying notes. Actual results could differ from those
estimates.
Periodically, the Company evaluates its estimates, including those related to the accounts
receivable and sales returns allowance, useful lives of property and equipment, and income taxes and
litigation and contingencies, among others. The Company bases its estimates on historical experience
and on various other assumptions that are believed to be reasonable at the time they are made, the
results of which form the basis for making judgments about the carrying values of assets and liabilities.
Cash, Cash Equivalents and Marketable Securities
The Company considers all highly liquid investments purchased with an original maturity (at the
date of purchase) of three months or less to be the equivalent of cash for the purpose of balance sheet
and statement of cash flows presentation. Cash equivalents consist principally of money market funds
and commercial paper with original maturities of three months or less at the date of purchase.
Marketable securities consist primarily of 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, 2008 and 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
Form 10-K
65