XML 50 R19.htm IDEA: XBRL DOCUMENT v3.3.0.814
Segment Information (Notes)
 3 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
Segment Information
Segment Information
During the first quarter of fiscal 2016, we revised our internal organizational and reporting structure resulting in changes to our reportable segments. Our operating segments are based upon the manner in which our operations are managed and the availability of separate financial information reported internally to the Chief Executive Officer, who is our Chief Operating Decision Maker (“CODM”) for purposes of making decisions about how to allocate resources and assess performance. We have several operating segments under our management reporting structure which are reported in the following three reportable segments:
•
Vistaprint Business Unit - Includes the operations of our Vistaprint-branded websites focused on the North America, Europe, Australia and New Zealand markets, and our Webs-branded business, which is managed with the Vistaprint-branded digital business in the previously listed geographies.
•
Upload and Print Business Units - Aggregates the operations of our druck.at, Exagroup, Easyflyer, Printdeal, Pixartprinting, and Tradeprint branded businesses. These operating segments have been aggregated into one reportable segment based on the similarity of their products, markets and economic characteristics.
•
All Other Business Units - Includes the operations of our Albumprinter and Most of World business units and newly formed Corporate Solutions business unit. Our Most of World business unit is focused on our emerging market portfolio, including operations in Brazil, China, India and Japan. The results of the newly formed Corporate Solutions business unit were previously part of the Vistaprint Business Unit and will focus on delivering volume and revenue via partnerships. These business units have been combined into one reportable segment based on materiality.
Consistent with our historical reporting, the cost of our global legal, human resource, finance, facilities management, software and manufacturing engineering, and the global component of our IT operations functions are generally not allocated to the reporting segments and are instead reported and disclosed under the caption "Corporate and global functions." Corporate and global functions is a cost center and does not meet the definition of an operating segment. We have revised our presentation of all prior periods presented to reflect our revised segment reporting.
In addition, during the first quarter of fiscal 2016 we introduced adjusted net operating profit as the primary metric by which our CODM measures segment financial performance. Certain items such as acquisition-related amortization and depreciation, expense recognized for the changes in the fair value of contingent consideration and compensation expense related to cash-based earn-out mechanisms dependent upon continued employment, share-based compensation related to investment consideration and restructuring charges are excluded from segment adjusted net operating profit. A portion of the interest expense associated with our Waltham lease is allocated to Vistaprint Business Unit and included as expense in adjusted net operating profit. The interest expense represents a portion of the cash rent payment and is considered an operating expense for purposes of measuring our segment performance. There are no internal revenue transactions between our operating segments, and we do not allocate non-operating income to our segment results. All intersegment transfers are recorded at cost for presentation to the CODM, for example, we allocate costs related to products manufactured by our global network of production facilities to the applicable operating segment. There is no intercompany profit or loss recognized on these transactions.
The following factors, among others, may limit the comparability of adjusted net operating profit by segment:
•
We do not allocate global support costs across operating segments or corporate and global functions.
•
Some of our acquired operations in our Upload and Print Business Units and All Other Business Units segments are burdened by the costs of their local finance, HR, and other administrative support functions, whereas other business units leverage our global functions and do not receive an allocation for these services.
•
Our All Other Business Units reporting segment includes our Most of World business unit, which has operating losses as it is in its early stage of investment relative to the scale of the underlying business.
Our balance sheet information is not presented to the CODM on an allocated basis, and therefore we do not present asset information by segment.
Revenue by segment is based on the business unit-specific websites through which the customer’s order was transacted. The following tables set forth revenue, adjusted net operating profit by reportable segment and total income from operations.
 
Three Months Ended September 30,
 
2015
 
2014
Revenue:
 
 
 
Vistaprint Business Unit
$
265,190

 
$
260,057

Upload and Print Business Units
76,538

 
38,729

All Other Business Units
34,020

 
35,146

Total revenue
$
375,748

 
$
333,932



 
Three Months Ended September 30,
 
2015
 
2014
Adjusted net operating profit by segment:


 


Vistaprint Business Unit
$
66,252

 
$
70,077

Upload and Print Business Units
10,887

 
4,520

All Other Business Units
359

 
2,192

Total adjusted net operating profit by segment
77,498

 
76,789

Corporate and global functions
(54,619
)
 
(48,848
)
Acquisition-related amortization and depreciation
(9,782
)
 
(6,908
)
Change in fair value of contingent consideration (earn-out related charges) (1)
—

 
(3,677
)
Share-based compensation related to investment consideration
(1,091
)
 
(497
)
Restructuring charges
(271
)
 
—

Interest expense for Waltham lease
350

 
—

Total income from operations
$
12,085

 
$
16,859


___________________
(1) Includes expense recognized for the change in fair value of contingent consideration and compensation expense related to cash-based earn-out mechanisms dependent upon continued employment.
 
Three Months Ended September 30,
 
2015
 
2014
Depreciation and amortization:
 
 
 
Vistaprint Business Unit
$
9,861

 
$
10,239

Upload and Print Business Units
10,052

 
5,812

All Other Business Units
4,383

 
3,807

Corporate and global functions
5,962

 
4,601

Total depreciation and amortization
$
30,258

 
$
24,459


Enterprise Wide Disclosures:
The following tables set forth revenues by geographic area and groups of similar products and services:
 
Three Months Ended September 30,
 
2015
 
2014
 
 
 
 
United States
$
179,413

 
$
165,318

Non-United States (2)
196,335

 
168,614

Total revenue
$
375,748

 
$
333,932


 
Three Months Ended September 30,
 
2015
 
2014
 
 
 
 
Physical printed products and other (3)
$
360,148


$
315,121

Digital products/services
15,600


18,811

Total revenue
$
375,748


$
333,932

___________________
(2) Our non-United States revenue includes the Netherlands, our country of domicile. Revenue earned in any other individual country other than the United States was not greater than 10% of consolidated revenue for the periods presented.
(3) Other revenue includes miscellaneous items which account for less than 1% of revenue.
The following tables set forth long-lived assets by geographic area:
 
September 30, 2015
 
June 30, 2015
Long-lived assets (4):
 

 
 

Canada
$
98,432

 
$
99,474

Netherlands
93,498

 
98,288

Switzerland
40,064

 
41,357

United States
30,494

 
31,417

Italy
33,995

 
28,548

Australia
24,173

 
26,908

Jamaica
23,433

 
23,814

France
23,134

 
21,449

Japan
19,525

 
16,219

Other
38,299

 
29,946

Total
$
425,047

 
$
417,420

___________________
(4) Excludes goodwill of $408,767 and $400,629, intangible assets, net of $155,471 and $151,063, the Waltham lease asset of $117,676 and $104,315 , and deferred tax assets of $19,016 and $17,172 as of September 30, 2015 and June 30, 2015, respectively.