Vistaprint 2008 Annual Report Download - page 83

VISTAPRINT LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Years Ended June 30, 2008, 2007 and 2006
(in thousands, except share and per share data)
6. Accrued Liabilities
Accrued liabilities included the following:
Year Ended June 30,
2008 2007
Accrued advertising costs.................................................... $ 9,939 $ 6,417
Accrued compensation costs................................................. 8,345 5,553
Accrued income taxes ....................................................... 3,078 610
Accrued shipping costs ...................................................... 1,445 1,708
VAT payable ............................................................... 3,514 2,343
Other ...................................................................... 9,334 5,772
Total accrued liabilities ...................................................... $35,655 $22,403
7. Series A and Series B Redeemable Convertible Preferred Shares
Prior to the Company’s initial public offering (“IPO”) on September 29, 2005 the Company had
outstanding 9,845,849 shares of Series A Redeemable convertible Preferred Shares (the “Series A
Shares”) and 12,874,694 shares of Series B Redeemable Convertible Preferred Shares (the “Series B
Shares”). The Series A and Series B shares had certain dividend, voting, liquidation, conversion and
redemption rights, as defined. In connection with the completion of the Company’s IPO, all outstanding
Series A Shares and Series B Shares were converted into an aggregate of 22,720,543 common shares.
8. Shareholders’ Equity
Share Options
The Company’s 2000-2002 Share Incentive Plan (the “2000-2002 Plan”) provided for employees,
officers, non-employee directors, consultants and advisors to receive restricted share awards or be
granted options to purchase the Company’s common shares. Under the 2000-2002 Plan, the Company
reserved an aggregate of 9,000,000 common shares for such awards. The Board of Directors
determined that no further grants of awards under the 2000-2002 Plan would be made after the IPO.
As of June 30, 2008, there were options to purchase 1,970,725 common shares outstanding under the
2000-2002 Plan. Upon the IPO, all shares reserved for issuance but not yet granted under the 2000-
2002 Plan were transferred to the Company’s 2005 Equity Incentive Plan and 2005 Non-Employee
Directors’ Share Option Plan (the “Directors’ Plan”). Options previously granted to U.S. tax residents
under the 2000-2002 Plan were either “Incentive Stock Options” or “Nonstatutory Options” under the
applicable provisions of the U.S. Internal Revenue Code.
The Amended and Restated 2005 Equity Incentive Plan (the “2005 Plan”) provides for
employees, officers, non-employee directors, consultants and advisors of the Company to receive
restricted share awards or other share-based awards or be granted options to purchase common
shares. Among other terms, the 2005 Plan, requires that the exercise price of any share option or
share appreciation right granted under the 2005 Plan be at least 100% of the fair market value of the
common shares on the date of grant; limits the term of any share option or share appreciation right to a
maximum period of ten years; provides that shares underlying outstanding awards under the 2000-
2002 Plan that are cancelled, forfeited, expired or otherwise terminated without having been exercised
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Form 10-K