Vistaprint 2015 Annual Report Download - page 71

63
The following table sets forth the reconciliation of the weighted-average number of ordinary shares:
Year Ended June 30,
2015 2014 2013
Weighted average shares outstanding, basic . . . . . . . . . . . . . . . . . 32,644,870 32,873,234 33,209,172
Weighted average shares issuable upon exercise/vesting of
outstanding share options/RSUs/RSAs . . . . . . . . . . . . . . . . . . . . . 1,171,628 1,366,675 1,262,832
Shares used in computing diluted net income per share
attributable to Cimpress N.V. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,816,498 34,239,909 34,472,004
Weighted average anti-dilutive shares excluded from diluted net
income per share attributable to Cimpress N.V. . . . . . . . . . . . . . . . 289,356 953,100 1,740,542
Compensation Expense
Share-Based Compensation
Compensation expense for all share-based awards expected to vest is measured at fair value on the date
of grant and recognized over the requisite service period. The fair value of share options is determined using the
Black-Scholes valuation model, or lattice model for share options with a market condition or subsidiary share
options, and the fair value of RSUs and RSAs is determined based on the number of shares granted and the
quoted price of our ordinary shares on the date of the grant. Such value is recognized ratably as expense over the
requisite service period, or on an accelerated method for awards with a performance or market condition, net of
estimated forfeitures. For awards that are ultimately settable in cash, we treat as liability awards and mark the
award to market each reporting period recognizing any gain or loss in our statements of operations. The estimation
of share awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates
differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates
are revised. We consider many factors when estimating expected forfeitures, including types of awards, employee
class, and historical experience. For awards with a performance condition vesting feature, compensation cost is
recorded if it is probable that the performance condition will be achieved.
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 13% and 24% of our total accounts receivable as of
June 30, 2015 and 2014, respectively. We do not have any customers that accounted for greater than 10% of our
revenue for the years ended June 30, 2015, 2014 or 2013.
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 April 2015, the Financial Accounting Standards Board issued Accounting Standards Update No.
2015-03,"Interest- Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance
Costs," (ASU 2015-03), which requires an entity to present debt issuance costs related to recognized debt liability in
the balance sheet as a direct deduction from the carrying amount of that debt liability. The new standard is effective
for us on July 1, 2016 and early adoption is permitted. The standard requires the application on a retrospective
basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-
specific effects of the standard. We do not expect it to have a material impact on our consolidated financial
statements.
Form 10-K