Vistaprint 2015 Annual Report Download - page 84

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We recognized the assets and liabilities on the basis of their fair values at the date of our the acquisition,
with any excess of the purchase price paid over the fair value of the net assets recorded as goodwill. Of the total
purchase price of $42,862, $20,605 was allocated to goodwill, $23,968 to acquired intangible assets and $1,711 to
net liabilities. Goodwill is not expected to be deductible for tax purposes, and has been attributed to our All Other
Business Units reportable segment. The revenue and earnings included in our fiscal 2014 consolidated financial
statements since the acquisition date are not material.
We utilized proceeds from our credit facility to finance our fiscal 2014 acquisitions. In connection with these
acquisitions, we incurred transaction costs related to investment banking, legal, financial, and other professional
services of approximately $4,530 in the year ended June 30, 2014, which were recorded in general and
administrative expenses.
Identifiable Intangible Assets
We used the income approach to value the trade names, customer relationships and customer network and
a replacement cost approach to value developed technology. The income approach calculates fair value by
discounting the forecasted after-tax cash flows back to a present value using an appropriate discount rate. The
baseline data for this analysis was the cash flow estimates used to price the transaction.
In estimating the useful life of the acquired assets, we reviewed the expected use of the assets acquired,
factors that may limit the useful life of an acquired asset or may enable the extension of the useful life of an
acquired asset without substantial cost, the effects of obsolescence, demand, competition and other economic
factors, and the level of maintenance expenditures required to obtain the expected future cash flows from the asset.
We amortize acquired intangible assets over their economic useful lives using either a method that is based on
estimated future cash flows or a straight-line basis over the periods benefited.
9. Goodwill and Acquired Intangible Assets
Goodwill
The carrying amount of goodwill by segment as of June 30, 2014 and June 30, 2015 is as follows:
Vistaprint
Business Unit
All Other
Business Units Total
Balance as of June 30, 2013 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . $ 135,122 $ 5,771 $ 140,893
Acquisitions (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 174,887 174,887
Effect of currency translation adjustments (3) . . . . . . . . . . . . . . . 2,885 (1,478) 1,407
Balance as of June 30, 2014 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . 138,007 179,180 317,187
Acquisitions (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 122,319 122,319
Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (113) (113)
Effect of currency translation adjustments (3) . . . . . . . . . . . . . . . (9,353) (29,411) (38,764)
Balance as of June 30, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 128,654 $ 271,975 $ 400,629
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(1) Our segment reporting has been revised as of July 1, 2014 and, as such, we have re-allocated our goodwill by segment for the periods
ended June 30, 2014 and 2013. See Note 17 for additional details.
(2) See Notes 8 and 16 for additional details.
(3) Relates to goodwill held by subsidiaries whose functional currency is not the U.S. Dollar.