Vistaprint 2014 Annual Report Download - page 86

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On April 3, 2014 we acquired 97% of the outstanding corporate capital of Pixartprinting S.p.A. The
remaining 3% is considered redeemable noncontrolling equity interest. It is presented as temporary equity in our
consolidated balance sheet for the period ended June 30, 2014, as it is redeemable for cash based on future
financial results and not solely within our control. The noncontrolling interest was recorded at its fair value as of the
acquisition date and will be adjusted to its redemption value on a periodic basis, if that amount exceeds its fair
value. As of June 30, 2014, the redemption value is less than carrying value and therefore no adjustment has been
made. For additional details please refer to Note 8 Business Combinations.
We own a 51% controlling interest in a joint business arrangement with Plaza Create Co. Ltd., a leading
Japanese retailer of photo products, to expand our market presence in Japan. During the twelve months ended
June 30, 2014, we contributed $4,891 in cash and $1,100 in assets, and Plaza Create made an initial capital
contribution of $4,818 in cash and assets valued at $955. The 49% noncontrolling equity interest in the business is
presented as temporary equity in our consolidated balance sheet for the period ended June 30, 2014, due to certain
default provisions contained in the agreement.
The following table presents the changes in our redeemable noncontrolling interests for the twelve months
ended June 30, 2014:
Noncontrolling Interests
Balance as of June 30, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ —
Capital contribution from noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,773
Adjustment to noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Acquisition of noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,728
Net loss attributable to noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (380)
Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17)
Balance as of June 30, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,160
17. Segment Information
Operating segments are based upon our internal organization structure, the manner in which our operations
are managed and the availability of separate financial information reported internally to the Chief Executive Officer,
who constitutes our Chief Operating Decision Maker (“CODM”) for purposes of making decision about how to
allocate resources and assess performance. We have three geographically based operating segments: North
America, Europe, and Most of World, which includes our historical Asia Pacific business and global emerging
markets. The results of our fourth quarter fiscal 2014 acquisitions of People & Print Group and Pixartprinting are
included in our Europe segment results. The CODM measures and evaluates the performance of our operating
segments based on revenue and income (loss) from operations.
Consistent with our historical reporting, the cost of our North America and Europe legal, human resource,
and facilities management functions are not allocated to the reporting segments and instead reported and disclosed
under the caption "Corporate and global functions," which includes expenses related to corporate support functions,
software and manufacturing engineering, and the global component of our IT operations and customer sales and
design support. Effective March 1, 2014 we revised our Most of World ("MOW") internal reporting structure to align
to this model and, as such, have recast our historical segment income (loss) from operations to reflect those MOW
specific costs as part of the Corporate and global function operating loss.
We do not allocate non-operating income to our segment results. There are no internal revenue
transactions between our reporting segments and all intersegment transfers are recorded at cost for presentation to
the CODM, for example, products manufactured by our Venlo, the Netherlands facility for the MOW segment;
therefore, there is no intercompany profit or loss recognized on these transactions. At this time, we do not allocate
support costs across operating segments or corporate and global functions, which may limit the comparability of
income from operations by segment. Our balance sheet information is not presented to the CODM on an allocated
basis and therefore we do not present asset information by segment.
Revenue by segment and geography is based on the country-specific website through which the
customer’s order was transacted. The following tables set forth revenue and income from operations by operating
segment.