Vistaprint 2010 Annual Report Download - page 72

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Cash, cash equivalents and marketable securities as of June 30, 2010 consisted of the
following:
Amortized
Cost
Gross
Unrealized
Losses Fair Value
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . $ 162,727 $ — $ 162,727
Marketable securities:
Corporate debt securities . . . . . . . . . . . . . . . . . . . 6,772 (27) 6,745
U.S government and agency securities . . . . . . . . . 1,900 — 1,900
Certificates of Deposit . . . . . . . . . . . . . . . . . . . . . . 960 (1) 959
Total current marketable securities . . . . . . . . 9,632 (28) 9,604
Municipal auction rate security . . . . . . . . . . . . . . . 700 (40) 660
Total long-term marketable securities . . . . . . 700 (40) 660
Total cash and cash equivalents and marketable
securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 173,059 $ (68) $ 172,991
Cash, cash equivalents and marketable securities as of June 30, 2009 consisted of the
following:
Amortized
Cost
Gross
Unrealized
Losses Fair Value
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . $ 133,988 $ — $ 133,988
Marketable security:
Municipal auction rate security . . . . . . . . . . . . . . . 800 (40) 760
Total long-term marketable security . . . . . . . . 800 (40) 760
Total cash, cash equivalents and marketable security. . $ 134,788 $ (40) $ 134,748
Derivative Instruments and Hedging Activities
The Company records all derivatives on the balance sheet at fair value. The accounting for
changes in the fair value of derivatives depends on the intended use of the derivative, whether the
Company has elected to designate a derivative in a hedging relationship and apply hedge accounting
and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting.
Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an
asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are
considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to
variability in expected future cash flows, or other types of forecasted transactions, are considered
cash flow hedges. Derivatives may also be designated as hedges of the currency exchange rate
exposure of a net investment in an operation that is not denominated in U.S. dollars. Hedge
accounting generally provides for the matching of the timing of gain or loss recognition on the hedging
instrument with the recognition of the changes in the fair value of the hedged asset or liability that are
attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted
transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended
to economically hedge certain of its risks, even though hedge accounting does not apply or the
Company elects not to apply hedge accounting.
68