Vistaprint 2014 Annual Report Download - page 58

54
VISTAPRINT N.V.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Years Ended June 30, 2014, 2013 and 2012
(in thousands, except share and per share data)
1. Description of the Business
We are a technology and manufacturing-driven company that aggregates, via the Internet, large volumes of
individually small, customized orders for a broad spectrum of print, signage, apparel and similar products. We
produce those orders in highly automated, capital and technology intensive production facilities in a manner that we
believe makes our production techniques significantly more competitive than those of traditional suppliers. We bring
our products to market via various brands that deliver marketing products and services to the small business and
home and family markets. These brands include Vistaprint, our leading global brand for micro business marketing
products and services, as well as several brands we have acquired that serve the needs of various market
segments including resellers, small and medium businesses with differentiated service needs, and consumers
purchasing products for personal use.
2. Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements include the accounts of Vistaprint N.V., its wholly owned subsidiaries,
entities in which we maintain a controlling financial interest, and those entities in which we have a variable interest
and are the primary beneficiary. Intercompany balances and transactions have been eliminated. Investments in
entities in which we can exercise significant influence, but do not own a majority equity interest or otherwise control,
are accounted for using the equity method and are included as investments in equity interests on the consolidated
balance sheets.
Certain reclassifications have been made in the prior period consolidated financial statements to conform to
the current presentation.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles
("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the
consolidated financial statements and accompanying notes. We believe our most significant estimates are
associated with the ongoing evaluation of the recoverability of our long-lived assets and goodwill, estimated useful
lives of assets, advertising expense and related accruals, share-based compensation, accounting for business
combinations, and income taxes and related valuation allowances, among others. By their nature, estimates are
subject to an inherent degree of uncertainty. Actual results could differ from those estimates.
Cash and Cash Equivalents
We consider all highly liquid investments purchased with an original maturity of three months or less to be
the equivalent of cash for the purpose of balance sheet and statement of cash flows presentation. Cash equivalents
consist of depository accounts and money market funds. Cash and cash equivalents restricted for use were $823
and $1,510 as of June 30, 2014 and 2013, respectively, and are included in other assets in the accompanying
consolidated balance sheets.
Marketable Securities
We determine the appropriate classification of marketable securities at the date of purchase and reevaluate
the classification at each balance sheet date. Our marketable securities are classified as "available-for-sale" and
carried at fair value, with the unrealized gains and losses, net of taxes if applicable, reported as a separate
component of accumulated other comprehensive income (loss). We review our investments for other-than-
temporary impairment whenever the fair value of the investment is less than the amortized cost and evidence
indicates that the investment's carrying amount is not recoverable within a reasonable period of time. Any decline in
value that is determined to be other than temporary is recognized as expense in our consolidated statement of
operations in the period the impairment is identified.