Vistaprint 2011 Annual Report Download - page 64

Download and view the complete annual report

Please find page 64 of the 2011 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 139

  • 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

Form 10-K
presentation. Cash equivalents consist of money market funds. Cash and cash equivalents restricted
for use were $1,205 and $2,005 as of June 30, 2011 and 2010, respectively, and are included in other
assets in the accompanying consolidated balance sheets.
Marketable securities, when held, consist primarily of investment-grade corporate bonds,
U.S. government agency issues, and certificates of deposit. Our marketable securities are classified
as “available-for-sale securities” and carried at fair value, with the unrealized gains and losses
reported as a separate component of accumulated other comprehensive income (loss). The cost of
securities sold is based on the specific identification method. Interest and dividends on securities
classified as available-for-sale are included in interest income.
We review our investments for other-than-temporary impairment whenever the fair value of an
investment is less than amortized cost and evidence indicates that an investment’s carrying amount is
not recoverable within a reasonable period of time. At June 30, 2011 and 2010, we held one municipal
auction rate security (“ARS”) as a result of failed auctions. The issuer of the ARS initiated a tender offer
in June 2011 and, on July 14, 2011, the securities were redeemed. As of June 30, 2011, the ARS has
been included in marketable securities at its redemption value and a realized loss of $71 has been
included in other expense, net, of which $40 was reclassified from other comprehensive income. There
were no other-than-temporary impairments during the years ended June 30, 2010 and 2009.
Cash, cash equivalents and marketable securities as of June 30, 2011 consisted of the following:
Amortized
Cost
Gross
Unrealized
Gains (Losses) Fair Value
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . $ 236,552 $ — $ 236,552
Marketable securities: . . . . . . . . . . . . . . . . . . . . . . . . .
Municipal auction rate security . . . . . . . . . . . . . . . 529 — 529
Total cash and cash equivalents, and marketable
securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 237,081 $ — $ 237,081
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
Accounts Receivable
Accounts receivable includes amounts due from customers, affiliates and partners. We offset
gross trade accounts receivable with an allowance for doubtful accounts, which is our best estimate of
the amount of probable credit losses in existing accounts receivable. Account balances are charged
off against the allowance when the potential for recovery is considered remote.
61