Vistaprint 2011 Annual Report Download - page 54

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Form 10-K
change in currency exchange rates was applied to total net monetary assets denominated
in currencies other than the functional currencies at the balance sheet dates to compute
the impact these changes would have had on our income before taxes in the near term. A
hypothetical decrease in exchange rates of 10% against the functional currency of our
subsidiaries would have resulted in an increase of $0.8 million and a decrease of
$0.7 million on our income before income taxes for the fiscal years 2011 and 2010,
respectively.
•Translation of our non-U.S. dollar assets and liabilities: Each of our subsidiaries translates
its assets and liabilities to U.S. dollars at current rates of exchange in effect at the balance
sheet date. The resulting gains and losses from translation are included as a component of
accumulated other comprehensive income (loss) on the balance sheet. Fluctuations in
exchange rates can materially impact the carrying value of our assets and liabilities.
Foreign currency transaction losses included in other expense, net for the years ended
June 30, 2011, 2010, and 2009 were $2.1 million, $1.5 million, and $0.8 million, respectively.
51