Vistaprint 2014 Annual Report Download - page 65

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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.
Concentrations of Credit Risk
We monitor the creditworthiness of our customers to which we grant credit terms in the normal course of
business. We had one channel partner that represented 24% and 35% of our total accounts receivable as of
June 30, 2014 and 2013, respectively. We do not have any customers that accounted for greater than 10% of our
revenue for the fiscal years ended June 30, 2014, 2013 or 2012.
We maintain an allowance for doubtful accounts for potential credit losses based upon specific customer
accounts and historical trends, and such losses to date in the aggregate have not materially exceeded our
expectations.
Recently Issued or Adopted Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No.
2014-09,"Revenue from Contracts with Customers," (ASU 2014-09) which requires an entity to recognize the
amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers.
This guidance will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective.
The new standard is effective for us on July 1, 2017 and early application is not permitted. The standard permits the
use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09
will have on our consolidated financial statements.
3. Fair Value Measurements
The following table summarizes our investments in available-for-sale securities:
June 30, 2014
Amortized Cost
Basis Unrealized gain Estimated Fair Value
Available-for-sale securities
Plaza Create Co. Ltd. common shares (1) . . . . . . . . . . . . . . . . . . . . . $ 4,611 $ 9,246 $ 13,857
Total investments in available-for-sale securities . . . . . . . . . . . . . . . . $ 4,611 $ 9,246 $ 13,857
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(1) On February 28, 2014, we purchased shares in our publicly traded Japanese joint venture partner. Refer to Note 16 for further discussion of
the separate joint business arrangement.
We did not have any outstanding available-for-sale securities for the year ended June 30, 2013.
We use a three-level valuation hierarchy for measuring fair value and include detailed financial statement
disclosures about fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the
valuation of an asset or liability as of the measurement date. The three levels are defined as follows:
• Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities
in active markets.
• Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active
markets, quoted prices for identical or similar assets in markets that are not active and inputs that are
observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial
instrument.
• Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value
measurement.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input
that is significant to the fair value measurement.
Form 10-K