Vistaprint 2009 Annual Report Download - page 87

Download and view the complete annual report

Please find page 87 of the 2009 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 160

  • 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

VISTAPRINT LIMITED
(predecessor to Vistaprint N.V.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Years Ended June 30, 2009, 2008 and 2007
(in thousands, except share and per share data)
The Company has the intent and the ability to hold the Level 3 asset until the anticipated recovery
period which it believes will be more than twelve months. To reflect the change in fair value of the
investment security, the Company recorded an impairment charge through other comprehensive
income during fiscal 2008. For the year ended June 30, 2009 there have been no changes in the fair
value of our assets being measured using significant unobservable inputs (Level 3) as defined in
SFAS 157.
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets
and Financial Liabilities Including an amendment of FASB Statement No. 115 (“SFAS 159”). SFAS 159
permits entities to choose to measure many financial instruments and certain other items at fair value
and is effective for fiscal years beginning after November 15, 2007. The Company has not elected to
value any non-financial assets at fair value.
4. Property, Plant and Equipment
Property, plant and equipment consist of the following:
June 30,
Estimated useful lives 2009 2008
Land improvements ............................. 10years $ 1,117 $ 1,173
Building and building improvements .............. 10-30years 61,024 43,228
Machinery and print production equipment ........ 4-10years 116,168 93,738
Computer software and equipment ............... 3-5years 31,221 23,137
Furniture, fixtures and office equipment ........... 5-7years 7,731 6,474
Shorter of lease term or
Leasehold improvements ........................ remaining life of the asset 3,447 2,740
Construction in progress......................... 27,654 13,567
248,362 184,057
Less accumulated depreciation .................. (66,349) (39,110)
182,013 144,947
Land........................................... 11,609 9,573
Property, plant, and equipment, net............... $193,622 $154,520
At June 30, 2009 construction in progress consisted mainly of expansion of the Canadian and
Dutch and other facilities, the purchase of production equipment for the Company’s Canadian and
Dutch production facilities and the purchase of information technology related assets. At June 30,
2008, construction in progress consisted mainly of expenditures related to the purchase of production
equipment for the Company’s Canadian and Dutch production facilities and the expansion of the
Canadian facility. Depreciation expense totaled $29,236, $20,348 and $11,568 for the years ended
June 30, 2009, 2008 and 2007, respectively.
5. Long-Term Debt
In November 2003, VistaPrint B.V., the Company’s Dutch subsidiary, entered into a 5.0 million
euro revolving credit agreement (the “Credit Agreement”) with ABN AMRO Bank N.V., a Dutch based
81
Form 10-K