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Segment Information (Notes)
 12 Months Ended
Jun. 30, 2016
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. As of June 30, 2016 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 - This operating segment includes the results of our druck.at, Exagroup, Easyflyer, Printdeal, Pixartprinting,Tradeprint, and WIRmachenDRUCK branded businesses.
•
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 the Corporate Solutions business unit 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, the global component of our IT operations functions, and certain start-up costs related to new product introductions and manufacturing technologies 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 are excluded from segment adjusted net operating profit, such as acquisition-related amortization and depreciation, expense recognized for earn-out related charges, including the changes in 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, certain impairment expense and restructuring charges. A portion of the interest expense associated with our Waltham lease is included as expense in adjusted net operating profit and allocated based on headcount to the appropriate business unit or corporate and global function. 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, total income from operations and total income before taxes.
 
Year Ended June 30,
 
2016
 
2015
 
2014
Revenue:
 
 
 
 
 
Vistaprint business unit
$
1,217,162

 
$
1,149,706

 
$
1,103,217

Upload and Print business units
432,638

 
197,075

 
43,590

All Other business units
138,244

 
147,425

 
123,429

Total revenue
$
1,788,044

 
$
1,494,206

 
$
1,270,236



 
Year Ended June 30,
 
2016
 
2015
 
2014
Adjusted net operating profit by segment:


 


 
 
Vistaprint business unit
$
350,486

 
$
323,542

 
$
292,547

Upload and Print business units
59,654

 
25,267

 
4,664

All Other business units
(8,801
)
 
9,346

 
8,773

Total adjusted net operating profit by segment
401,339

 
358,155

 
305,984

Corporate and global functions
(235,185
)
 
(215,519
)
 
(194,812
)
Acquisition-related amortization and depreciation
(40,834
)
 
(24,265
)
 
(12,723
)
Earn-out related charges (1)
(6,378
)
 
(15,276
)
 
(2,192
)
Share-based compensation related to investment consideration
(4,835
)
 
(3,569
)
 
(4,363
)
Certain impairments (2)
(41,820
)
 
—

 
—

Restructuring charges
(381
)
 
(3,202
)
 
(5,980
)
Interest expense for Waltham lease
6,287

 
—

 
—

Total income from operations
78,193

 
96,324

 
85,914

Other income, net
26,098

 
20,134

 
(21,630
)
Interest expense, net
(38,196
)
 
(16,705
)
 
(7,674
)
Income before income taxes and loss in equity interest
$
66,095

 
$
99,753

 
$
56,610


___________________
(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.
(2) Includes the impact of impairments or abandonments of goodwill and other long-lived assets as defined by ASC 350 - "Intangibles - Goodwill and Other" or ASC 360 - "Property, plant, and equipment."
 
Year Ended June 30,
 
2016
 
2015
 
2014
Depreciation and amortization:
 
 
 
 
 
Vistaprint business unit
$
40,686

 
$
40,075

 
$
34,782

Upload and Print business units
47,696

 
24,539

 
5,367

All Other business units
18,111

 
15,258

 
13,787

Corporate and global functions
25,425

 
17,628

 
18,346

Total depreciation and amortization
$
131,918

 
$
97,500

 
$
72,282


Enterprise Wide Disclosures:
The following tables set forth revenues by geographic area and groups of similar products and services:
 
Year Ended June 30,
 
2016
 
2015
 
2014
 
 

 
 
 
 
United States
$
781,335

 
$
718,072

 
$
653,216

Non-United States (3)
1,006,709

 
776,134

 
617,020

Total revenue
$
1,788,044

 
$
1,494,206

 
$
1,270,236


 
Year Ended June 30,
 
2016
 
2015
 
2014
 
 
 
 
 
 

Physical printed products and other (4)
$
1,724,676

 
$
1,423,110


$
1,189,905

Digital products/services
63,368

 
71,096


80,331

Total revenue
$
1,788,044

 
$
1,494,206


$
1,270,236

___________________
(3) 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.
(4) Other revenue includes miscellaneous items which account for less than 1% of revenue.
The following tables set forth long-lived assets by geographic area:
 
June 30, 2016
 
June 30, 2015
Long-lived assets (5):
 

 
 

Netherlands
$
91,053

 
$
98,288

Canada
89,888

 
99,474

Switzerland
38,501

 
41,357

Italy
34,086

 
28,548

United States
32,977

 
31,417

France
24,561

 
21,449

Australia
24,358

 
26,908

Japan
23,213

 
16,219

Jamaica
22,604

 
23,814

Other
53,059

 
29,946

Total
$
434,300

 
$
417,420

___________________
(5) Excludes goodwill of $466,005 and $400,629, intangible assets, net of $216,970 and $151,063, the Waltham lease asset of $120,168 and $104,315, and deferred tax assets of $26,093 and $17,172 as of June 30, 2016 and June 30, 2015, respectively.