Vistaprint 2011 Annual Report Download - page 68

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Form 10-K
The components of accumulated other comprehensive income (loss) were as follows:
2011 2010
June 30,
Cumulative translation adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,877 $ (10,606)
Unrealized gain on cash flow hedge, net of tax of $0 and $22,
respectively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 49
Unrealized loss on marketable securities . . . . . . . . . . . . . . . . . . . . . . . — (68)
Accumulated other comprehensive income (loss) . . . . . . . . . . . . . . . . . $ 12,877 $ (10,625)
Treasury Shares
Treasury shares are accounted for under the cost method and included as a component of
shareholders’ equity.
Net Income Per Share
Basic net income per share is computed by dividing net income by the weighted-average
number of ordinary shares outstanding for the fiscal period. Diluted net income per share gives effect
to all potentially dilutive securities, including share options and restricted share units (“RSUs”), using
the treasury stock method as our unvested share options and RSUs do not have rights to dividends.
The following table sets forth the reconciliation of the weighted-average number of ordinary
shares:
2011 2010 2009
Year Ended June 30,
Weighted average shares outstanding, basic . . . . . . 43,431,326 43,365,872 43,330,166
Weighted average shares issuable upon
exercise/vesting of outstanding share
options/RSUs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,519,873 1,970,689 1,304,025
Shares used in computing diluted net income per
share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,951,199 45,336,561 44,634,191
Weighted average anti-dilutive shares excluded from
diluted net income per share . . . . . . . . . . . . . . . . . 640,214 259,398 2,096,825
Compensation Expense
Share-Based Compensation
Compensation expense for all share-based awards expected to vest is measured at fair value
on the date of grant and recognized over the service period. The fair value of RSUs is determined
based on the number of shares granted and the quoted price of our ordinary shares. Such value is
recognized as expense over the service period, net of estimated forfeitures. The estimation of share
awards that will ultimately vest requires judgment, and to the extent actual results or updated
estimates differ from our current estimates, such amounts will be recorded as a cumulative
adjustment in the period estimates are revised.
Sabbatical Leave
Compensation expense associated with a sabbatical leave, or other similar benefit
arrangements, is accrued over the requisite service period during which an employee earns the
benefit, net of estimated forfeitures, and is included in other liabilities on our consolidated balance
sheets.
65