Vistaprint 2009 Annual Report Download - page 94

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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 corporate minimum tax credit carryforwards and research and development
tax credits in Canada of approximately $304 and $787, respectively that expire at various dates
through 2019.
The Company adopted the provisions of FIN 48 effective July 1, 2007. FIN 48 clarifies the
accounting for income taxes by prescribing the minimum recognition threshold a tax position is
required to meet before being recognized in the financial statements. FIN 48 provides guidance on
derecognition, classification, interest and penalties, accounting in interim periods, disclosure and
transition. The Company did not recognize any cumulative effect of a change in accounting principle
from the adoption of FIN 48. A reconciliation of the beginning and ending amount of unrecognized tax
benefits, including interest, is as follows:
Balance at July 1, 2008 ................................................................ $ 850
Additions based on tax positions related to the current tax year ............................ 363
Additions based on tax positions related to prior tax years ................................. 276
Balance at June 30, 2009 .............................................................. $1,489
The amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is
$1,372 as of June 30, 2009. The Company recognizes interest and, if applicable, penalties related to
unrecognized tax benefits in income tax expense. The accrued interest and penalties included in
income tax expense for the year ended June 30, 2009 and 2008 were $75 and $27, respectively.
The Company does not anticipate the amount of unrecognized tax benefits to change materially
over the next 12 months.
The Company is required to file income tax returns in the U.S. federal jurisdiction, the state of
Massachusetts and multiple jurisdictions outside of the U.S. The Company’s U.S. federal tax returns
for 2006 and subsequent years and the state tax returns for 2005 and subsequent years, remain open
to examination by the tax authorities. In addition, the statute of limitations is not closed for non-U.S. tax
jurisdictions, including the Netherlands, Spain and Canada which have tax years open to examination
for 2004, 2005, 2006 and subsequent years, respectively.
10. Segment Information
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 chief
executive officer. The Company views its operations and manages its business as one operating
segment.
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