Vistaprint 2015 Annual Report Download - page 95

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87
entities are included in our consolidated financial statements and we adjust the net income in our consolidated
statement of operations to exclude the noncontrolling interests' proportionate share of results. We present the
proportionate share of equity attributable to the redeemable noncontrolling interests as temporary equity within our
consolidated balance sheet and the proportionate share of noncontrolling interests not subject to a redemption
provision that is outside of our control as equity.
Redeemable noncontrolling interests
On April 15, 2015 we acquired 70% of the outstanding shares of Exagroup. The remaining 30% is
considered a redeemable noncontrolling equity interest, as it is redeemable in the future and not solely within our
control. The redeemable 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, 2015, the
redemption value is less than the carrying value and therefore no adjustment has been made. For additional details
please refer to Note 8 Business Combinations.
On April 3, 2014 we acquired 97% of the outstanding corporate capital of Pixartprinting S.p.A. The
remaining 3% is considered a redeemable noncontrolling equity interest, as it is redeemable for cash based on
future financial results and not solely within our control. The redeemable 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, 2015, 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 fiscal 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
$955 in assets. We have a call option to acquire the remaining 49% of the business if Plaza Create materially
breaches any of its contracts with us. If we materially breach any of our contracts with Plaza Create, Plaza Create
has an option to put its shares to us. As the exercise of this put option is not solely within our control, the
noncontrolling equity interest in the business is presented as temporary equity in our consolidated balance sheet.
As of June 30, 2015, it is not probable that the noncontrolling interest will be redeemable.
Noncontrolling interest
On August 7, 2014, we made a capital investment in Printi LLC as described in Note 16. The noncontrolling
interest was recorded at its estimated fair value as of the investment date. The net income (loss) of the operations
allocated to the noncontrolling interest considers our stated liquidation preference in applying the income or loss to
each party.
The following table presents the reconciliation of changes in our noncontrolling interests:
Redeemable
noncontrolling interests Noncontrolling interest
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 $ —
Capital contribution from noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . 4,160 —
Acquisition of noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,951 2,867
Dividend paid to noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (118) —
Net loss attributable to noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . (700) (2,200)
Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285 (155)
Balance as of June 30, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 57,738 $ 512
Form 10-K