Vistaprint 2015 Annual Report Download - page 47

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39
year ended June 30, 2015 influenced by the restricted share awards granted as part of our fiscal 2012 Webs
acquisition that were fully vested at December 31, 2013.
The decrease in our marketing and selling expenses of $5.8 million for the year ended June 30, 2014, as
compared to the year ended June 30, 2013, was primarily due to decreased advertising costs of $19.5 million as we
executed more strategically focused spend during the year, particularly in Europe. Additionally, share-based
compensation expense decreased during fiscal 2014 by $1.3 million as the restricted share awards granted as part
of our fiscal 2012 Webs acquisition were fully vested at December 31, 2013. This reduction in expense was partially
offset by increased payroll and facility-related costs of $6.9 million as we continued to expand our marketing
organization and our customer service, sales and design support centers. At June 30, 2014, we employed 2,038
employees in these organizations compared to 1,672 employees at June 30, 2013. In addition, other marketing and
selling expenses increased by $6.1 million, inclusive of $1.3 million of restructuring related expenses, as well as
increased outside service costs, payment processing fees, and other marketing costs. Fiscal 2014 also includes
$2.0 million of additional amortization expense for the customer and trademark related intangible assets acquired
with the Printdeal and Pixartprinting businesses.
General and administrative expense
General and administrative expense consists primarily of transaction costs, including third-party
professional fees, insurance and payroll and related expenses of employees involved in executive management,
finance, legal, and human resources.
During the year ended June 30, 2015 our general and administrative expenses increased as compared to
fiscal 2014 by $28.6 million primarily due to an increase of $14.9 million attributable to the increase in the fair value
of the contingent consideration liabilities for Printdeal and Pixartprinting since June 30, 2014. Payroll and share-
based compensation expense increased by $10.7 million and $2.5 million, respectively during the year ended
June 30, 2015 as compared to the prior year. At June 30, 2015 we employed 451 employees in these organizations
compared to 416 employees at June 30, 2014. Other general and administrative expenses also increased by $2.9
million due to increased employee travel, training, and recruitment costs. The increase in general and administrative
expense was partially offset by decreased professional fees of $2.4 million during fiscal 2015, as fiscal 2014
included more expenses incurred primarily for certain strategic initiatives.
During the year ended June 30, 2014 our general and administrative expenses increased as compared to
the year ended June 30, 2013 by $6.5 million, primarily due to an increase of $5.9 million in professional fees for
costs incurred related to our acquisitions and strategic investments during the year, as well as $3.2 million of
employee and facility related restructuring costs. In addition, we recognized $2.2 million of expense for the increase
in the fair value of the earn-out liability for both Printdeal and Pixartprinting since the dates of acquisition. These
increases were partially offset by a net decrease of $4.8 million primarily related to reduced share-based
compensation, recruiting costs, and other corporate charges. At June 30, 2014 we employed 416 employees in
these organizations compared to 400 employees at June 30, 2013.
Other income (expense), net
Other income (expense), net generally consists of gains and losses from currency exchange rate
fluctuations on transactions or balances denominated in currencies other than the functional currency of our
subsidiaries, as well as the realized and unrealized gains and losses on our derivative instruments for which we do
not apply hedge accounting. In evaluating our currency hedging program and ability to achieve hedge accounting in
light of our legal entity cash flows, we considered the benefits of hedge accounting relative to the additional
economic cost of trade execution and administrative burden. Based on this analysis, we decided to execute
currency forward contracts that do not qualify for hedge accounting.The following table summarizes the components
Form 10-K