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Segment Information | 9 Months Ended
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Mar. 31, 2019
Segment Reporting [Abstract] |
Segment Information | Segment Information 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 March 31, 2019, we have numerous operating segments under our management reporting structure which are reported in the following four reportable segments:
• | Vistaprint - Includes the operations of our Vistaprint 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 - Includes the results of our druck.at, Easyflyer, Exagroup, Pixartprinting, Printdeal, Tradeprint, and WIRmachenDRUCK businesses.
• | National Pen - Includes the global operations of our National Pen businesses, which manufacture and market custom writing instruments and promotional products, apparel and gifts.
• | All Other Businesses - Includes a collection of businesses grouped together based on materiality:
◦ | BuildASign, acquired on October 1, 2018, is an internet-based provider of canvas-print wall décor, business signage and other large-format printed products, based in Austin, Texas.
◦ | Printi is an online printing leader in Brazil, which offers a superior customer experience with transparent and attractive pricing, reliable service and quality.
◦ | VIDA, acquired on July 2, 2018, is an innovative startup that brings manufacturing access and an e-commerce marketplace to artists, thereby enabling artists to convert ideas into beautiful, original products for customers, ranging from custom fashion, jewelry and accessories to home accent pieces.
◦ | Vistaprint Corporate Solutions serves medium-sized businesses and large corporations, as well as a legacy revenue stream with retail partners and franchise businesses.
◦ | Vistaprint India operates a derivative of the Vistaprint business model, albeit with higher service levels and quality, fully domestic, Indian content, pricing that is a slight premium to many traditional offline alternatives, and almost no discounting.
◦ | Vistaprint Japan operates a derivative of the Vistaprint business model with a differentiated position relative to competitors who tend to focus on upload and print, not the self-service, micro-business customer which Vistaprint Japan serves.
◦ | Albumprinter through its divestiture date of August 31, 2017.
In the fourth quarter of fiscal 2019, we revised our internal organizational and reporting structure resulting in changes to our Upload and Print reportable segment. Due to the organizational changes, our Upload and Print reportable segment will be split into two separate operating and reportable segments. These changes in reporting structure are intended to position leaders closer to operations of the businesses, to lower costs, and to drive culture, priorities and technologies that improve customer and financial outcomes. Central and corporate costs consist primarily of the team of software engineers that is building our mass customization platform; shared service organizations such as global procurement; technology services such as hosting and security; administrative costs of our Cimpress India offices where numerous Cimpress businesses have dedicated business-specific team members; and corporate functions including our Board of Directors, CEO, and the team members necessary for managing corporate activities, such as treasury, tax, capital allocation, financial consolidation, internal audit and legal. These costs also include certain unallocated share-based compensation costs. For awards granted under our 2016 Performance Equity Plan, the PSU expense value is based on a Monte Carlo fair value analysis and is required to be expensed on an accelerated basis. In order to ensure comparability in measuring our businesses' results, we allocate the straight-line portion of the fixed grant value to our businesses. Any expense in excess of the amount as a result of the fair value measurement of the PSUs and the accelerated expense profile of the awards is recognized within Central and corporate costs. All expense or benefit associated with our supplemental performance share units is recognized within Central and corporate costs. Segment profit (loss) is the primary profitability metric by which our CODM measures segment financial performance and allocates resources. Certain items are excluded from segment profit (loss), such as acquisition-related amortization and depreciation, expense recognized for contingent 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, Massachusetts lease is included as expense in segment profit (loss) and allocated based on headcount to the appropriate business 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. We do not allocate non-operating income to our segment results. Our All Other Businesses reportable segment includes businesses that have operating losses as they are in the early stage of investment relative to the scale of the underlying businesses, which may limit its comparability to other segments regarding profit (loss). Our balance sheet information is not presented to the CODM on an allocated basis, and therefore we do not present asset information by segment. We do present other segment information to the CODM, which includes purchases of property, plant and equipment and capitalization of software and website development costs, and therefore include that information in the tables below. Revenue by segment is based on the business-specific websites or sales channel through which the customer’s order was transacted. The following tables set forth revenue by reportable segments, as well as disaggregation of revenue by major geographic regions and reportable segments.
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2019 |  | 2018 |  | 2019 |  | 2018
Revenue: |  |  |  |  |  |  |
Vistaprint (1) | $ | 349,901 |  |  | $ | 357,606 |  |  | $ | 1,121,156 |  |  | $ | 1,105,557 |
Upload and Print (2) | 188,135 |  |  | 183,768 |  |  | 564,099 |  |  | 536,685 |
National Pen (3) | 79,721 |  |  | 81,545 |  |  | 278,643 |  |  | 267,360 |
All Other Businesses (4) | 50,109 |  |  | 18,865 |  |  | 130,824 |  |  | 67,913 |
Total segment revenue | 667,866 |  |  | 641,784 |  |  | 2,094,722 |  |  | 1,977,515 |
Inter-segment eliminations | (6,052 | ) |  | (5,715 | ) |  | (18,360 | ) |  | (16,108 | )
Total consolidated revenue | $ | 661,814 |  |  | $ | 636,069 |  |  | $ | 2,076,362 |  |  | $ | 1,961,407 |
_____________________ (1) Vistaprint segment revenues include inter-segment revenue of $3,198 and $9,463 for the three and nine months ended March 31, 2019, respectively, and $2,747 and $7,753 for the prior comparative periods, respectively. (2) Upload and Print segment revenues include inter-segment revenue of $159 and $887 for the three and nine months ended March 31, 2019, respectively and $329 and $1,137 for the prior comparative periods, respectively. (3) National Pen segment revenues include inter-segment revenue of $1,280 and $2,784 for the three and nine months ended March 31, 2019, respectively, and $805 and $2,275 for the prior comparative periods, respectively. (4) All Other Businesses segment revenues include inter-segment revenue of $1,415 and $5,226 for the three and nine months ended March 31, 2019, respectively, and $1,834 and $4,943 for the prior comparative periods, respectively. The All Other Businesses segment includes the revenue of the VIDA and BuildASign's businesses since its acquisition of July 2, 2018 and October 1, 2018, respectively, as well as the Albumprinter business during the nine months ended March 31, 2018 until the sale completion date of August 31, 2017.
| Three Months Ended March 31, 2019
| Vistaprint |  | Upload and Print |  | National Pen |  | All Other |  | Total
North America | $ | 244,830 |  |  | $ | — |  |  | $ | 41,697 |  |  | $ | 38,279 |  |  | $ | 324,806 |
Europe | 85,575 |  |  | 187,976 |  |  | 29,895 |  |  | 756 |  |  | 304,202 |
Other | 16,298 |  |  | — |  |  | 6,849 |  |  | 9,659 |  |  | 32,806 |
Inter-segment | 3,198 |  |  | 159 |  |  | 1,280 |  |  | 1,415 |  |  | 6,052 |
Total segment revenue | 349,901 |  |  | 188,135 |  |  | 79,721 |  |  | 50,109 |  |  | 667,866 |
Less: inter-segment elimination | (3,198 | ) |  | (159 | ) |  | (1,280 | ) |  | (1,415 | ) |  | (6,052 | )
Total external revenue | $ | 346,703 |  |  | $ | 187,976 |  |  | $ | 78,441 |  |  | $ | 48,694 |  |  | $ | 661,814 |
| Three Months Ended March 31, 2018
| Vistaprint |  | Upload and Print |  | National Pen |  | All Other |  | Total
North America | $ | 244,561 |  |  | $ | 45 |  |  | $ | 40,813 |  |  | $ | 6,008 |  |  | $ | 291,427 |
Europe | 92,305 |  |  | 183,394 |  |  | 31,983 |  |  | 576 |  |  | 308,258 |
Other | 17,993 |  |  | — |  |  | 7,944 |  |  | 10,447 |  |  | 36,384 |
Inter-segment | 2,747 |  |  | 329 |  |  | 805 |  |  | 1,834 |  |  | 5,715 |
Total segment revenue | 357,606 |  |  | 183,768 |  |  | 81,545 |  |  | 18,865 |  |  | 641,784 |
Less: inter-segment elimination | (2,747 | ) |  | (329 | ) |  | (805 | ) |  | (1,834 | ) |  | (5,715 | )
Total external revenue | $ | 354,859 |  |  | $ | 183,439 |  |  | $ | 80,740 |  |  | $ | 17,031 |  |  | $ | 636,069 |
| Nine Months Ended March 31, 2019
| Vistaprint |  | Upload and Print |  | National Pen |  | All Other |  | Total
North America | $ | 765,684 |  |  | $ | — |  |  | $ | 137,603 |  |  | $ | 92,490 |  |  | $ | 995,777 |
Europe | 291,506 |  |  | 563,212 |  |  | 113,404 |  |  | 2,226 |  |  | 970,348 |
Other | 54,503 |  |  | — |  |  | 24,852 |  |  | 30,882 |  |  | 110,237 |
Inter-segment | 9,463 |  |  | 887 |  |  | 2,784 |  |  | 5,226 |  |  | 18,360 |
Total segment revenue | 1,121,156 |  |  | 564,099 |  |  | 278,643 |  |  | 130,824 |  |  | 2,094,722 |
Less: inter-segment elimination | (9,463 | ) |  | (887 | ) |  | (2,784 | ) |  | (5,226 | ) |  | (18,360 | )
Total external revenue | $ | 1,111,693 |  |  | $ | 563,212 |  |  | $ | 275,859 |  |  | $ | 125,598 |  |  | $ | 2,076,362 |
| Nine Months Ended March 31, 2018
| Vistaprint |  | Upload and Print |  | National Pen |  | All Other |  | Total
North America | $ | 738,921 |  |  | $ | 2,141 |  |  | $ | 131,100 |  |  | $ | 14,928 |  |  | $ | 887,090 |
Europe | 300,477 |  |  | 533,407 |  |  | 112,261 |  |  | 14,251 |  |  | 960,396 |
Other | 58,406 |  |  | — |  |  | 21,724 |  |  | 33,791 |  |  | 113,921 |
Inter-segment | 7,753 |  |  | 1,137 |  |  | 2,275 |  |  | 4,943 |  |  | 16,108 |
Total segment revenue | 1,105,557 |  |  | 536,685 |  |  | 267,360 |  |  | 67,913 |  |  | 1,977,515 |
Less: inter-segment elimination | (7,753 | ) |  | (1,137 | ) |  | (2,275 | ) |  | (4,943 | ) |  | (16,108 | )
Total external revenue | $ | 1,097,804 |  |  | $ | 535,548 |  |  | $ | 265,085 |  |  | $ | 62,970 |  |  | $ | 1,961,407 |
The following table includes segment profit (loss) by reportable segment, total income from operations and total income before income taxes.
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2019 |  | 2018 |  | 2019 |  | 2018
Segment profit (loss): |  |  |  |  |  |  |  |  |
Vistaprint | $ | 69,713 |  |  | $ | 57,661 |  |  | $ | 200,765 |  |  | $ | 187,605 |
Upload and Print | 17,865 |  |  | 17,367 |  |  | 56,498 |  |  | 54,605 |
National Pen (1) | (1,713 | ) |  | 355 |  |  | 5,113 |  |  | 19,185 |
All Other Businesses | (6,964 | ) |  | (9,342 | ) |  | (24,117 | ) |  | (25,459 | )
Total segment profit | 78,901 |  |  | 66,041 |  |  | 238,259 |  |  | 235,936 |
Central and corporate costs | (28,499 | ) |  | (35,891 | ) |  | (76,540 | ) |  | (97,558 | )
Acquisition-related amortization and depreciation | (14,089 | ) |  | (13,030 | ) |  | (40,372 | ) |  | (38,330 | )
Earn-out related charges (2) | — |  |  | — |  |  | — |  |  | (2,391 | )
Share-based compensation related to investment consideration | — |  |  | — |  |  | (2,893 | ) |  | (1,047 | )
Certain impairments and other adjustments (3) | (607 | ) |  | — |  |  | (607 | ) |  | — |
Restructuring-related charges | (7,866 | ) |  | (2,331 | ) |  | (9,062 | ) |  | (14,686 | )
Interest expense for Waltham, MA lease | 1,775 |  |  | 1,838 |  |  | 5,457 |  |  | 5,645 |
Gain on the purchase or sale of subsidiaries (4) | — |  |  | — |  |  | — |  |  | 48,380 |
Total income from operations | 29,615 |  |  | 16,627 |  |  | 114,242 |  |  | 135,949 |
Other (expense) income, net | (2,495 | ) |  | (1,558 | ) |  | 17,386 |  |  | (25,602 | )
Interest expense, net | (16,787 | ) |  | (12,652 | ) |  | (47,372 | ) |  | (38,263 | )
Income before income taxes | $ | 10,333 |  |  | $ | 2,417 |  |  | $ | 84,256 |  |  | $ | 72,084 |
___________________ (1) During the first quarter of fiscal 2019, we adopted ASC 606, Revenue from Contracts with Customers, which is the new revenue standard described in Note 2 of the accompanying consolidated financial statements. We applied the new standard under the modified retrospective method, in which we did not apply the new standard to the prior comparable period. The adoption of the new standard resulted in lower direct mail advertising costs within our National Pen business during the three months ended March 31, 2019 of $1,486, as compared to the prior comparative period, due to the earlier recognition of costs during the first quarter of fiscal 2019. During the nine months ended March 31, 2019, the new standard had a negative impact on operating income and adjusted net operating profit of $486, as compared to the prior comparative period. Direct mail advertising costs were previously capitalized and amortized over the customer response period (typically 3-4 months) and now costs are recognized when the direct mail is sent to the customers. (2) 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. (3) Includes the impact of certain impairments of goodwill and other long-lived assets as defined by ASC 350 - "Intangibles - Goodwill and Other", as well as reserves recognized for loans as defined by ASC 326 - "Financial Instruments - Credit Losses." (4) Includes the impact of the gain on the sale of Albumprinter that was recognized in general and administrative expense in our consolidated statement of operations during the nine months ended March 31, 2018.
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2019 |  | 2018 |  | 2019 |  | 2018
Depreciation and amortization: |  |  |  |  |  |  |
Vistaprint | $ | 16,317 |  |  | $ | 16,460 |  |  | $ | 48,185 |  |  | $ | 48,943 |
Upload and Print | 12,702 |  |  | 15,701 |  |  | 40,196 |  |  | 45,426 |
National Pen | 5,371 |  |  | 5,372 |  |  | 15,814 |  |  | 15,742 |
All Other Businesses | 6,935 |  |  | 2,538 |  |  | 15,587 |  |  | 6,981 |
Central and corporate costs | 3,009 |  |  | 3,366 |  |  | 9,772 |  |  | 10,028 |
Total depreciation and amortization | $ | 44,334 |  |  | $ | 43,437 |  |  | $ | 129,554 |  |  | $ | 127,120 |
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2019 |  | 2018 |  | 2019 |  | 2018
Purchases of property, plant and equipment: |  |  |  |  |  |  |
Vistaprint | $ | 4,628 |  |  | $ | 4,843 |  |  | $ | 25,860 |  |  | $ | 29,342 |
Upload and Print | 952 |  |  | 2,279 |  |  | 8,111 |  |  | 11,270 |
National Pen | 745 |  |  | 1,183 |  |  | 7,780 |  |  | 4,891 |
All Other Businesses | 12,228 |  |  | 252 |  |  | 15,077 |  |  | 1,231 |
Central and corporate costs | 614 |  |  | 210 |  |  | 1,106 |  |  | 707 |
Total purchases of property, plant and equipment | $ | 19,167 |  |  | $ | 8,767 |  |  | $ | 57,934 |  |  | $ | 47,441 |
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2019 |  | 2018 |  | 2019 |  | 2018
Capitalization of software and website development costs: |  |  |  |  |  |  |
Vistaprint | $ | 6,659 |  |  | $ | 7,186 |  |  | $ | 19,274 |  |  | $ | 18,266 |
Upload and Print | 962 |  |  | 1,149 |  |  | 2,964 |  |  | 2,939 |
National Pen | 1,035 |  |  | 302 |  |  | 2,511 |  |  | 669 |
All Other Businesses | 1,517 |  |  | 443 |  |  | 3,329 |  |  | 1,811 |
Central and corporate costs | 2,543 |  |  | 2,282 |  |  | 6,559 |  |  | 5,791 |
Total capitalization of software and website development costs | $ | 12,716 |  |  | $ | 11,362 |  |  | $ | 34,637 |  |  | $ | 29,476 |
The following table sets forth long-lived assets by geographic area:
| March 31, 2019 |  | June 30, 2018
Long-lived assets (1): |  |  |  |  |
Netherlands | $ | 84,313 |  |  | $ | 109,556 |
Canada | 75,427 |  |  | 81,334 |
United States | 57,492 |  |  | 45,709 |
Switzerland | 55,976 |  |  | 52,523 |
Italy | 41,475 |  |  | 42,514 |
Jamaica | 21,741 |  |  | 21,720 |
Australia | 21,504 |  |  | 22,418 |
France | 19,277 |  |  | 20,131 |
Japan | 17,769 |  |  | 19,117 |
Other | 79,140 |  |  | 67,842 |
Total | $ | 474,114 |  |  | $ | 482,864 |
___________________ (1) Excludes goodwill of $720,734 and $520,843, intangible assets, net of $273,831 and $230,201, build-to-suit lease assets of $121,108 and $111,926, and deferred tax assets of $57,885 and $67,087 as of March 31, 2019 and June 30, 2018, respectively.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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