Vistaprint 2011 Annual Report Download - page 71

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4. Property, Plant and Equipment, Net
Property, plant and equipment, net consists of the following:
Estimated useful lives 2011 2010
June 30,
Land improvements . . . . . . . . . . . . . . . . . 10 years $ 1,416 $ 1,172
Building and building improvements . . . . . 10 - 30 years 119,233 82,619
Machinery and production equipment . . . . 4 - 10 years 165,261 143,338
Computer software and equipment . . . . . . 3 - 5 years 60,822 48,689
Furniture, fixtures and office equipment . . 5 - 7 years 11,075 9,353
Shorter of lease term or
Leasehold improvements . . . . . . . . . . . . . expected life of the asset 7,645 4,663
Construction in progress . . . . . . . . . . . . . 13,422 37,910
378,874 327,744
Less accumulated depreciation . . . . . . . . (145,724) (96,945)
233,150 230,799
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,954 19,162
Property, plant, and equipment, net . . . . . $ 262,104 $ 249,961
Depreciation expense totaled $43,410, $37,199 and $29,236 for the years ended June 30,
2011, 2010 and 2009, respectively.
5. Goodwill and Acquired Intangible Assets
On December 30, 2009, we acquired 100% of the outstanding equity of Soft Sight, Inc., a
privately held developer of embroidery digitization software based in the United States, for $6,500 in
cash. Soft Sight’s proprietary software enables a customer’s uploaded graphic artwork to be
automatically converted into embroidery stitch patterns for subsequent manufacturing. We launched a
line of embroidered products to customers in fiscal 2011.
We allocated the purchase price for Soft Sight to net tangible assets of $52, intangible assets
of $2,647, goodwill of $4,168 and net deferred tax liabilities of $368. Of the $2,647 of acquired
intangible assets, $920 was immediately expensed as it will not be used and does not have economic
value for us. The carrying value of the remaining intangible assets related to developed embroidery
technology and customer lists are being amortized over a weighted average life of approximately
3.8 years.
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