Vistaprint 2015 Annual Report Download - page 90

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Share-based compensation
Total share-based compensation costs were $24,075, $27,786 and $32,928 for the years ended June 30,
2015, 2014 and 2013, respectively. See footnotes 8 and 17 for information related to liability based awards issued
in conjunction with our acquisition of Pixartprinting and our capital investment in our variable interest entity Printi
LLC. Share-based compensation costs capitalized as part of software and website development costs were $477,
$254 and $130 for the years ended June 30, 2015, 2014 and 2013, respectively.
As of June 30, 2015, there was $40,272 of total unrecognized compensation cost related to non-vested,
share-based compensation arrangements, net of estimated forfeitures. This cost is expected to be recognized over
a weighted average period of 2.7 years.
13. Employees’ Savings Plans
Defined contribution plans
We maintain certain government mandated and defined contribution plans throughout the world. The most
significant is our defined contribution retirement plan in the U.S. (the “Plan”) that complies with Section 401(k) of the
Internal Revenue Code. Substantially all employees in the U.S. are eligible to participate in the Plan. Under the
provisions of the Plan, employees may voluntarily contribute up to 80% of eligible compensation, subject to IRS
limitations. We match 50% of each participant’s voluntary contributions, subject to a maximum company
contribution of 3% of the participant’s eligible compensation. Employee contributions are fully vested when
contributed. Company matching contributions vest over 4 years.
We expensed $8,619, $8,178 and $7,158 for our government mandated and defined contribution plans in
the years ended June 30, 2015, 2014 and 2013, respectively. Our expenses from these plans have increased
during the year ended June 30, 2015 due to increased headcount, as well as the full year impact of our business
acquisitions during the prior period.
Defined benefit plan
We currently have a defined benefit plan that covers substantially all of our employees in Switzerland. Our
Swiss plan is a government-mandated retirement fund with benefits generally earned based on years of service and
compensation during active employment; however, the level of benefits varies within the Plan. Eligibility is
determined in accordance with local statutory requirements. Under this plan, both we and certain of our employees
with annual earnings in excess of government determined amounts are required to make contributions into a fund
managed by an independent investment fiduciary. Employer contributions must be in an amount at least equal to
the employee’s contribution. Minimum employee contributions are based on the respective employee’s age, salary,
and gender. As of June 30, 2015 and 2014, the plan had an unfunded net pension obligation of approximately
$4,252 and $3,338, respectively and plan assets which totaled approximately $9,596 and $11,602, respectively. For
the years ended June 30, 2015, 2014 and 2013 we recognized expense totaling $2,043, $1,921, and $1,417,
respectively, related to our Swiss plan. During fiscal 2015, a component of the total expense relates to a settlement
loss of $456 as a result of headcount reductions in our Switzerland office.
14. Income Taxes
The following is a summary of our income before income taxes and loss in equity interests by geography:
Year Ended June 30,
2015 2014 2013
U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,567 $ 14,382 $ 8,730
Non-U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,186 42,228 32,002
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 99,753 $ 56,610 $ 40,732