Segment Information (Tables)

3 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

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 September 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 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.

During the first quarter of fiscal 2017, we transferred a large part of our IT operations team from our corporate and global functions cost center to the Vistaprint business unit. Additionally, a group of finance employees were transferred to corporate and global functions from the Upload and Print business units, due to changes in our internal organization structure. We have revised the presentation of all prior periods presented to reflect our revised segment reporting.

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. Under our new incentive compensation plan we granted PSUs during the first quarter of fiscal 2017. 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 business unit results, we allocate the straight-line portion of the fixed grant value to our business units. 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 corporate and global functions.

Adjusted net operating profit is 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 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 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.

	Three Months Ended September 30,
	2016		2015
Revenue:
Vistaprint business unit	$	285,422	$	267,469
Upload and Print business units	131,957		76,538
All Other business units	26,334		31,741
Total revenue	$	443,713	$	375,748

	Three Months Ended September 30,
	2016			2015
Adjusted net operating profit by segment:
Vistaprint business unit	$	58,217		$	64,462
Upload and Print business units	16,114			11,450
All Other business units	(9,609		)	(1,085		)
Total adjusted net operating profit by segment	64,722			74,827
Corporate and global functions	(63,937		)	(51,948		)
Acquisition-related amortization and depreciation	(10,213		)	(9,782		)
Earn-out related charges (1)	(16,247		)	(289		)
Share-based compensation related to investment consideration	(4,103		)	(802		)
Restructuring charges	—			(271		)
Interest expense for Waltham lease	1,970			350
Total (loss) income from operations	(27,808		)	12,085
Other (expense) income, net	(2,132		)	9,242
Interest expense, net	(9,904		)	(8,126		)
(Loss) income before income taxes	$	(39,844	)	$	13,201

___________________

(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,
	2016		2015
Depreciation and amortization:
Vistaprint business unit	$	11,273	$	9,861
Upload and Print business units	14,110		10,052
All Other business units	3,604		4,383
Corporate and global functions	6,418		5,962
Total depreciation and amortization	$	35,405	$	30,258

Enterprise Wide Disclosures:

The following tables set forth revenues by geographic area and groups of similar products and services:

	Three Months Ended September 30,
	2016		2015
United States	$	187,955	$	179,413
Non-United States (2)	255,758		196,335
Total revenue	$	443,713	$	375,748

	Three Months Ended September 30,
	2016		2015
Physical printed products and other (3)	$	428,714	$	360,148
Digital products/services	14,999		15,600
Total revenue	$	443,713	$	375,748

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(2) Our non-United States revenue includes the Netherlands, our country of domicile.

(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, 2016		June 30, 2016
Long-lived assets (4):
Netherlands	$	96,780	$	91,053
Canada	89,562		89,888
Switzerland	41,581		38,501
Italy	35,804		34,086
United States	32,126		32,977
France	24,245		24,561
Australia	24,727		24,358
Japan	23,290		23,213
Jamaica	22,290		22,604
Other	49,816		53,059
Total	$	440,221	$	434,300

___________________

(4) Excludes goodwill of $470,819 and $466,005, intangible assets, net of $209,387 and $216,970, the Waltham lease asset of $119,134 and $120,168, and deferred tax assets of $41,556 and $26,093 as of September 30, 2016 and June 30, 2016, respectively.

	Three Months Ended September 30,
	2016		2015
Revenue:
Vistaprint business unit	$	285,422	$	267,469
Upload and Print business units	131,957		76,538
All Other business units	26,334		31,741
Total revenue	$	443,713	$	375,748

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

	Three Months Ended September 30,
	2016			2015
Adjusted net operating profit by segment:
Vistaprint business unit	$	58,217		$	64,462
Upload and Print business units	16,114			11,450
All Other business units	(9,609		)	(1,085		)
Total adjusted net operating profit by segment	64,722			74,827
Corporate and global functions	(63,937		)	(51,948		)
Acquisition-related amortization and depreciation	(10,213		)	(9,782		)
Earn-out related charges (1)	(16,247		)	(289		)
Share-based compensation related to investment consideration	(4,103		)	(802		)
Restructuring charges	—			(271		)
Interest expense for Waltham lease	1,970			350
Total (loss) income from operations	(27,808		)	12,085
Other (expense) income, net	(2,132		)	9,242
Interest expense, net	(9,904		)	(8,126		)
(Loss) income before income taxes	$	(39,844	)	$	13,201

___________________

(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.

Depreciation and amortization by operating segment

	Three Months Ended September 30,
	2016		2015
Depreciation and amortization:
Vistaprint business unit	$	11,273	$	9,861
Upload and Print business units	14,110		10,052
All Other business units	3,604		4,383
Corporate and global functions	6,418		5,962
Total depreciation and amortization	$	35,405	$	30,258

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]

The following tables set forth revenues by geographic area and groups of similar products and services:

	Three Months Ended September 30,
	2016		2015
United States	$	187,955	$	179,413
Non-United States (2)	255,758		196,335
Total revenue	$	443,713	$	375,748

Revenue from External Customers by Products and Services [Table Text Block]

	Three Months Ended September 30,
	2016		2015
Physical printed products and other (3)	$	428,714	$	360,148
Digital products/services	14,999		15,600
Total revenue	$	443,713	$	375,748

___________________

(2) Our non-United States revenue includes the Netherlands, our country of domicile.

(3) Other revenue includes miscellaneous items which account for less than 1% of revenue.

Revenues and long-lived assets by geographic area

The following tables set forth long-lived assets by geographic area:

	September 30, 2016		June 30, 2016
Long-lived assets (4):
Netherlands	$	96,780	$	91,053
Canada	89,562		89,888
Switzerland	41,581		38,501
Italy	35,804		34,086
United States	32,126		32,977
France	24,245		24,561
Australia	24,727		24,358
Japan	23,290		23,213
Jamaica	22,290		22,604
Other	49,816		53,059
Total	$	440,221	$	434,300

___________________

(4) Excludes goodwill of $470,819 and $466,005, intangible assets, net of $209,387 and $216,970, the Waltham lease asset of $119,134 and $120,168, and deferred tax assets of $41,556 and $26,093 as of September 30, 2016 and June 30, 2016, respectively.