Vistaprint 2010 Annual Report Download - page 86

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9. Employees’ Savings Plan
The Company maintains certain government mandated and defined contribution plans
throughout the world. The most significant is the Company’s defined contribution retirement plan in
the U.S. (the “Plan”) that complies with Section 401(k) of the Internal Revenue Code. Substantially all
employees in the U.S. are eligible to participate in the Plan. Under the provisions of the Plan,
employees may voluntarily contribute up to 15% of eligible compensation, subject to IRS limitations.
The Company matches 50% of each participant’s voluntary contributions, subject to a maximum
Company contribution of 3% of the participant’s eligible compensation. Employee contributions are
fully vested when contributed. Company matching contributions vest over four years. The Company
contributed and expensed $1,547, $1,258 and $988 for the Plan in the years ended June 30, 2010,
2009 and 2008, respectively. Contributions under the Company’s remaining global plans were not
material in the years ended June 30, 2010, 2009 and 2008.
10. Income Taxes
On August 31, 2009 Vistaprint N.V., a Dutch limited liability company, became the parent
company of the Vistaprint group of companies. The Dutch Revenue Authority granted the Company
an Advanced Tax Ruling, which enabled the Company to conclude that the reincorporation to the
Netherlands would not have an adverse impact to its effective tax rate. Vistaprint Limited, the former
parent company and current subsidiary of Vistaprint N.V., is a Bermuda based company. The
Company has entered into and operates pursuant to transfer pricing agreements that establish the
transfer prices for transactions between Vistaprint Limited and the Company’s subsidiaries in Canada,
France, the Netherlands, Jamaica, Spain, Switzerland, Tunisia, Germany, Australia, Japan and the
United States. The determination of appropriate transfer prices requires the Company to apply
judgment. The Company believes that its transfer pricing is in accordance with advanced tax rulings
and applicable statutory regulations.
The components of the provision (benefit) for income taxes are as follows:
2010 2009 2008
Year Ended June 30,
Current:
U.S. Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,607 $ 4,766 $ 4,544
U.S. State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,366 2,234 781
Non-U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,530 3,062 965
Total current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,503 10,062 6,290
Deferred:
U.S. Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,797) (2,344) (2,099)
U.S. State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (289) (1,289) (688)
Non-U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (144) (1,012) 758
(2,230) (4,645 ) (2,029)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,273 $ 5,417 $ 4,261
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