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Summary of Significant Accounting Policies Summary of Significant Accounting Principles (Tables)

9 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

For the year ended June 30, 2021 and three months ended September 30, 2021, we incorrectly recognized $7,518 and $9,027, respectively, of gains in other income (expense), net. This error overstated other income (expense), net; income (loss) before income taxes; and net income for both periods but did not have an impact on cash provided by operating activities, since it is a non-cash currency item. Included below are the revisions made for each period presented.

Consolidated Balance Sheets			As of September 30, 2021
			Reported						Adjustments						Revised
Accumulated other comprehensive loss			$	(83,732)					$	16,545					$	(67,187)
Retained earnings			532,414						(16,545)						515,869
			As of June 30, 2021
			Reported						Adjustments						Revised
Accumulated other comprehensive loss			$	(79,000)					$	7,518					$	(71,482)
Retained earnings			537,677						(7,518)						530,159
Consolidated Statements of Operations			Three months ended September 30, 2021
			Reported						Adjustments						Revised
Other income (expense), net			$	22,197					$	(9,027)					$	13,170
Income (loss) before income taxes			13,448						(9,027)						4,421
Net income (loss)			4,067						(9,027)						(4,960)
Net income (loss) attributable to Cimpress plc			2,329						(9,027)						(6,698)
Net income (loss) per share attributable to Cimpress plc:
Basic			$	0.09					$	(0.35)					$	(0.26)
Diluted			$	0.09					$	(0.35)					$	(0.26)
Consolidated Statements of Comprehensive Loss			Three months ended September 30, 2021
			Reported						Adjustments						Revised
Net income (loss)			$	4,067					$	(9,027)					$	(4,960)
Foreign currency translation losses, net of hedges			(9,210)						9,027						(183)
Consolidated Statements of Shareholders' Deficit			Three months ended September 30, 2021
			Reported						Adjustments						Revised
Net income (loss) attributable to Cimpress plc			$	2,329					$	(9,027)					$	(6,698)
Foreign currency translation, net of hedges			(8,353)						9,027						674
Consolidated Statements of Cash Flows			Three months ended September 30, 2021
			Reported						Adjustments						Revised
Net income (loss)			$	4,067					$	(9,027)					$	(4,960)
Effect of exchange rate changes on monetary assets and liabilities denominated in non-functional currency			(8,853)						9,027						174

Consolidated Statements of Operations			Year ended June 30, 2021
			Reported						Adjustments						Revised
Other income (expense), net			$	(11,835)					$	(7,518)					$	(19,353)
Loss before income taxes			(56,036)						(7,518)						(63,554)
Net loss			(74,939)						(7,518)						(82,457)
Net loss attributable to Cimpress plc			(77,711)						(7,518)						(85,229)
Net loss per share attributable to Cimpress plc:
Basic			$	(2.99)					$	(0.29)					$	(3.28)
Diluted			$	(2.99)					$	(0.29)					$	(3.28)
Consolidated Statements of Comprehensive (Loss) Income			Year ended June 30, 2021
			Reported						Adjustments						Revised
Net loss			$	(74,939)					$	(7,518)					$	(82,457)
Foreign currency translation losses, net of hedges			5,397						7,518						12,915
Consolidated Statements of Shareholders' Equity (Deficit)			Year ended June 30, 2021
			Reported						Adjustments						Revised
Net loss attributable to Cimpress plc			$	(77,711)					$	(7,518)					$	(85,229)
Foreign currency translation, net of hedges			3,765						7,518						11,283
Consolidated Statements of Cash Flows			Year ended June 30, 2021
			Reported						Adjustments						Revised
Net loss			$	(74,939)					$	(7,518)					$	(82,457)
Effect of exchange rate changes on monetary assets and liabilities denominated in non-functional currency			(7,278)						7,518						240

Presentation of Revenue and Cost of Revenue

During the first quarter of fiscal 2022, we identified an immaterial error related to the presentation of revenue for one-to-one design service arrangements that overstated revenue and cost of revenue for the period from October 1, 2020 through June 30, 2021. On October 1, 2020 we acquired the 99designs business, which is presented as part of our Vista reportable segment, and after acquisition we recognized revenue on a gross basis as if we were the principal to the transactions. During the first quarter of fiscal 2022, we reconsidered the guidance of ASC 606-10-55-39 and confirmed we are the principal for contest arrangements; however, the one-to-one design service portion of 99designs revenue is governed by different terms and conditions. We evaluated whether we have control over these services before the design is transferred to the customer, as we leverage a network of third-party designers to fulfill this offering. The pricing and fulfillment responsibility aspects of the one-to-one design arrangements led us to conclude we are an agent to these specific transactions.

The revision for the three and nine months ended March 31, 2021 is summarized in the table below.

Consolidated Statements of Operations			Three months ended March 31, 2021
			Reported						Adjustments						Revised
Revenue			$	578,851					$	(5,489)					$	573,362
Cost of revenue			302,022						(5,489)						296,533
			Nine months ended March 31, 2021
			Reported						Adjustments						Revised
Revenue			$	1,951,496					$	(10,730)					$	1,940,766
Cost of revenue			986,845						(10,730)						976,115

    The impact of this revision will result in a decrease to revenue and cost of revenue for fiscal year 2021 of $16,552.

Debt Securities, Held-to-maturity

The following is a summary of the net carrying amount, unrealized gains, unrealized losses, and fair value of held-to-maturity securities by type and contractual maturity as of March 31, 2022 and June 30, 2021.

			March 31, 2022
			Amortized cost						Unrealized gains						Unrealized losses						Fair value
Due within one year or less:
Commercial paper			$	18,998					$	—					$	(14)					$	18,984
Corporate debt securities			76,639						3						(324)						76,318
Total due within one year or less			95,637						3						(338)						95,302
Due between one and two years:
Corporate debt securities			12,116						—						(233)						11,883
Total held-to-maturity securities			$	107,753					$	3					$	(571)					$	107,185

			June 30, 2021
			Amortized cost												Unrealized losses						Fair value
Due within one year or less:
Commercial paper			$	74,463											$	(28)					$	74,435
Corporate debt securities			77,785												(57)						77,728
Total due within one year or less			152,248												(85)						152,163
Due after one year through two years:
Corporate debt securities			50,713												(90)						50,623
Total held-to-maturity securities			$	202,961											$	(175)					$	202,786

Interest and Other Income

The following table summarizes the components of other income (expense), net:

			Three Months Ended March 31,												Nine Months Ended March 31,
			2022						2021						2022						2021
Gains (losses) on derivatives not designated as hedging instruments (1)			$	11,210					$	18,724					$	31,017					$	(13,791)
Currency-related (losses) gains, net (2)(3)			(672)						(8,841)						5,202						(2,957)
Other gains (losses)			1,783						(98)						2,111						581
Total other income (expense), net			$	12,321					$	9,785					$	38,330					$	(16,167)

_____________________

(1) Primarily relates to both realized and unrealized gains and losses on derivative currency forward and option contracts not designated as hedging instruments, as well as certain interest rate swap contracts that have been de-designated from hedge accounting due to their ineffectiveness. The ineffective portion of interest rate swap contracts which had been de-designated amounted to gains of $6,580 and $6,364 for the three and nine months ended March 31, 2022, respectively, and gains of $6,394 and $6,759 for the three and nine months ended March 31, 2021, respectively.

(2) We have significant non-functional currency intercompany financing relationships that we may change at times and are subject to currency exchange rate volatility. The currency-related (losses) gains, net are primarily driven by this intercompany activity for the periods presented. In addition, we have certain cross-currency swaps designated as cash flow hedges which hedge the remeasurement of certain intercompany loans; both are presented in the same component above. Unrealized gains related to cross-currency swaps were $1,770 and $8,126 during the three and nine months ended March 31, 2022, respectively, while there were unrealized gains of $6,288 and unrealized losses of $5,233 during the three and nine months ended March 31, 2021, respectively.

(3) During the second quarter of fiscal year 2022, we identified an immaterial error and revised our previously reported results to reduce the gains presented above by $9,027 for the nine months ended March 31, 2022. Refer to the "Revision of Prior Period Financial Statements" section above for additional details.

Schedule of Weighted Average Number of Shares

The following table sets forth the reconciliation of the weighted-average number of ordinary shares:

			Three Months Ended March 31,												Nine Months Ended March 31,
			2022						2021						2022						2021
Weighted average shares outstanding, basic and diluted (1)			26,102,610						26,003,675						26,090,460						25,984,300
Weighted average anti-dilutive shares excluded from diluted net loss per share attributable to Cimpress plc (2)			908,354						621,172						770,500						485,067

___________________

(1) In the periods in which a net loss is recognized, the impact of share options, RSUs, RSAs and warrants is not included as they are anti-dilutive.

(2) On May 1, 2020, we entered into a financing arrangement with Apollo Global Management, Inc., which included 7-year warrants with a strike price of $60 that have a potentially dilutive impact on our weighted average shares outstanding. For the three and nine months ended March 31, 2022, the weighted average dilutive effect of the warrants was 103,443 and 264,963 shares, respectively, as compared to 412,473 and 348,973 shares for the three and nine months ended March 31, 2021, respectively.

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