10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________

Form 10-Q

(Mark One)
þ	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended March 31, 2018
or
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from               to

Commission file number 000-51539

_________________________________

Cimpress N.V.

(Exact Name of Registrant as Specified in Its Charter)

_________________________________

The Netherlands	98-0417483
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

Hudsonweg 8

5928 LW Venlo

The Netherlands

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: 31-77-850-7700

Securities Registered Pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Exchange on Which Registered
Ordinary Shares, €0.01 par value	NASDAQ Global Select Market

_________________________________

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes þ     No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes þ     No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer  þ	Accelerated filer  o	Non-accelerated filer  o
	Smaller reporting company  o	(Do not check if a smaller reporting company)
	Emerging growth company  o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o

     Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2).  Yes o     No þ

As of April 27, 2018, there were 30,715,831Cimpress N.V. ordinary shares, par value €0.01 per share, outstanding.

CIMPRESS N.V.

QUARTERLY REPORT ON FORM 10-Q

For the Three and Nine Months Ended March 31, 2018

TABLE OF CONTENTS

	Page
PART I FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)	1
Consolidated Balance Sheets as of March 31, 2018 and June 30, 2017	1
Consolidated Statements of Operations for the three and nine months ended March 31, 2018 and 2017	2
Consolidated Statements of Comprehensive (Loss) Income for the three and nine months ended March 31, 2018 and 2017	3
Consolidated Statements of Cash Flows for the nine months ended March 31, 2018 and 2017	4
Notes to Consolidated Financial Statements	6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3. Quantitative and Qualitative Disclosures About Market Risk	43
Item 4. Controls and Procedures	44
Part II OTHER INFORMATION
Item 1A. Risk Factors	44
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	62
Item 6. Exhibits	62
Signatures	62

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CIMPRESS N.V.

CONSOLIDATED BALANCE SHEETS

(unaudited in thousands, except share and per share data)

	March 31, 2018			June 30, 2017
Assets
Current assets:
Cash and cash equivalents	$	49,878		$	25,697
Accounts receivable, net of allowances of $7,520and $3,590, respectively	65,632			48,630
Inventory	63,009			46,563
Prepaid expenses and other current assets	69,231			78,835
Assets held for sale	—			46,276
Total current assets	247,750			246,001
Property, plant and equipment, net	501,115			511,947
Software and website development costs, net	56,279			48,470
Deferred tax assets	66,753			48,004
Goodwill	542,369			514,963
Intangible assets, net	250,593			275,924
Other assets	44,994			34,560
Total assets	$	1,709,853		$	1,679,869
Liabilities, noncontrolling interests and shareholders’ equity
Current liabilities:
Accounts payable	$	147,089		$	127,386
Accrued expenses	210,407			175,567
Deferred revenue	34,991			30,372
Short-term debt	26,214			28,926
Other current liabilities	42,922			78,435
Liabilities held for sale	—			8,797
Total current liabilities	461,623			449,483
Deferred tax liabilities	56,089			60,743
Lease financing obligation	103,737			106,606
Long-term debt	786,401			847,730
Other liabilities	120,610			94,683
Total liabilities	1,528,460			1,559,245
Commitments and contingencies (Note 13)
Redeemable noncontrolling interests	87,805			45,412
Shareholders’ equity:
Preferred shares, par value €0.01 per share, 100,000,000 shares authorized; none issued and outstanding	—			—
Ordinary shares, par value €0.01 per share, 100,000,000 shares authorized; 44,080,627 shares issued; and 30,714,481 and 31,415,503 shares outstanding, respectively	615			615
Treasury shares, at cost, 13,366,146 and 12,665,124 shares, respectively	(675,536		)	(588,365		)
Additional paid-in capital	390,758			361,376
Retained earnings	459,940			414,771
Accumulated other comprehensive loss	(82,476		)	(113,398		)
Total shareholders’ equity attributable to Cimpress N.V.	93,301			74,999
Noncontrolling interests (Note 10)	287			213
Total shareholders' equity	93,588			75,212
Total liabilities, noncontrolling interests and shareholders’ equity	$	1,709,853		$	1,679,869

See accompanying notes.

1

CIMPRESS N.V.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited in thousands, except share and per share data)

	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
Revenue	$	636,069		$	550,585		$	1,961,407		$	1,571,149
Cost of revenue (1)	319,209			268,482			963,249			757,898
Technology and development expense (1)	61,267			63,236			182,598			178,528
Marketing and selling expense (1)	179,591			167,284			546,469			451,310
General and administrative expense (1)	44,103			45,730			127,869			150,471
Amortization of acquired intangible assets	12,941			13,450			38,132			33,542
Restructuring expense (1)	2,331			24,790			14,686			25,890
(Gain) on sale of subsidiaries	—			—			(47,545		)	—
Impairment of goodwill and acquired intangible assets	—			9,556			—			9,556
Income (loss) from operations	16,627			(41,943		)	135,949			(36,046		)
Other (expense) income, net	(1,558		)	(6,582		)	(25,602		)	21,835
Interest expense, net	(12,652		)	(11,584		)	(38,263		)	(31,119		)
Income (loss) before income taxes	2,417			(60,109		)	72,084			(45,330		)
Income tax expense (benefit)	4,019			(17,431		)	19,657			(7,644		)
Net (loss) income	(1,602		)	(42,678		)	52,427			(37,686		)
Add: Net (income) loss attributable to noncontrolling interest	(663		)	(256		)	(1,394		)	677
Net (loss) income attributable to Cimpress N.V.	$	(2,265	)	$	(42,934	)	$	51,033		$	(37,009	)
Basic net (loss) income per share attributable to Cimpress N.V.	$	(0.07	)	$	(1.38	)	$	1.65		$	(1.18	)
Diluted net (loss) income per share attributable to Cimpress N.V.	$	(0.07	)	$	(1.38	)	$	1.58		$	(1.18	)
Weighted average shares outstanding — basic	30,724,018			31,103,388			30,992,066			31,323,451
Weighted average shares outstanding — diluted	30,724,018			31,103,388			32,276,520			31,323,451

____________________________________________

(1) Share-based compensation is allocated as follows:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
Cost of revenue	$	105	$	91	$	240	$	209
Technology and development expense	3,242		1,123		7,916		6,566
Marketing and selling expense	2,138		1,242		4,981		3,542
General and administrative expense	7,289		4,084		19,254		19,071
Restructuring expense	718		6,257		1,327		6,257

See accompanying notes.

2

CIMPRESS N.V.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(unaudited in thousands)

	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
Net (loss) income	$	(1,602	)	$	(42,678	)	$	52,427		$	(37,686	)
Other comprehensive (loss) income, net of tax:
Foreign currency translation (losses) gains, net of hedges	(8,799		)	14,884			32,651			(23,086		)
Net unrealized gains (losses) on derivative instruments designated and qualifying as cash flow hedges	8,408			(426		)	12,822			7,049
Amounts reclassified from accumulated other comprehensive loss to net (loss) income on derivative instruments	(2,416		)	895			(6,550		)	(4,698		)
Unrealized loss on available-for-sale-securities	—			—			—			(5,756		)
Amounts reclassified from accumulated other comprehensive loss to net (loss) income for realized gains on available-for-sale securities	—			—			—			2,268
Gain on pension benefit obligation, net	—			2,185			—			2,221
Comprehensive (loss) income	(4,409		)	(25,140		)	91,350			(59,688		)
Add: Comprehensive (income) loss attributable to noncontrolling interests	(2,343		)	(778		)	(7,077		)	3,847
Total comprehensive (loss) income attributable to Cimpress N.V.	$	(6,752	)	$	(25,918	)	$	84,273		$	(55,841	)

See accompanying notes.

3

CIMPRESS N.V.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited in thousands)

	Nine Months Ended March 31,
	2018			2017
Operating activities
Net income (loss)	$	52,427		$	(37,686	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	127,120			115,784
Impairment of goodwill and acquired intangible assets	—			9,556
Share-based compensation expense	33,718			35,645
Deferred taxes	(9,552		)	(37,849		)
Gain on sale of subsidiaries	(47,545		)	—
Change in contingent earn-out liability	1,774			27,364
Gain on sale of available-for-sale securities	—			(2,268		)
Unrealized loss on derivatives not designated as hedging instruments included in net income (loss)	9,246			839
Payments of contingent consideration in excess of acquisition date fair value	(4,639		)	—
Effect of exchange rate changes on monetary assets and liabilities denominated in non-functional currency	5,211			(7,215		)
Other non-cash items	2,129			4,123
Changes in operating assets and liabilities:
Accounts receivable	(14,696		)	3,434
Inventory	(12,104		)	(7,136		)
Prepaid expenses and other assets	136			2,389
Accounts payable	18,448			9,908
Accrued expenses and other liabilities	(17,040		)	6,756
Net cash provided by operating activities	144,633			123,644
Investing activities
Purchases of property, plant and equipment	(47,441		)	(56,916		)
Proceeds from the sale of subsidiaries, net of transaction costs and cash divested	93,779			—
Business acquisitions, net of cash acquired	(110		)	(204,875		)
Purchases of intangible assets	(308		)	(110		)
Capitalization of software and website development costs	(29,476		)	(28,678		)
Proceeds from sale of available-for-sale securities	—			6,346
Other investing activities	(2,465		)	6,727
Net cash provided by (used in) investing activities	13,979			(277,506		)
Financing activities
Proceeds from borrowings of debt	590,508			612,004
Payments of debt and debt issuance costs	(659,404		)	(398,282		)
Payments of purchase consideration included in acquisition-date fair value	(2,105		)	(539		)
Payments of withholding taxes in connection with equity awards	(3,080		)	(10,816		)
Payments of capital lease obligations	(13,779		)	(12,029		)
Purchase of ordinary shares	(94,710		)	(50,008		)
Purchase of noncontrolling interests	—			(20,230		)
Proceeds from issuance of ordinary shares	11,516			331
Issuance of loans	(16,500		)	—
Proceeds from sale of noncontrolling interest	35,390			—
Capital contribution from noncontrolling interest	—			1,404
Other financing activities	—			1,281
Net cash (used in) provided by financing activities	(152,164		)	123,116
Effect of exchange rate changes on cash	5,691			(3,213		)
Change in cash held for sale	12,042			—
Net increase (decrease) in cash and cash equivalents	24,181			(33,959		)
Cash and cash equivalents at beginning of period	25,697			77,426
Cash and cash equivalents at end of period	$	49,878		$	43,467

See accompanying notes.

4

CIMPRESS N.V.

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(unaudited in thousands)

	Nine Months Ended March 31,
	2018		2017
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	33,856	$	27,430
Income taxes	17,888		35,967
Non-cash investing and financing activities:
Property and equipment acquired under capital leases	$	531	$	12,099
Amounts accrued related to business acquisitions	3,864		31,613

See accompanying notes.

5

CIMPRESS N.V.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited in thousands, except share and per share data)

1. Description of the Business

We are a technology driven company that aggregates, largely via the internet, large volumes of small, individually customized orders for a broad spectrum of print, signage, apparel and similar products. We operate in a largely decentralized manner. Our businesses fulfill orders with manufacturing capabilities that include Cimpress owned and operated manufacturing facilities and a network of third-party fulfillers to create customized products on demand. Those businesses bring their products to market through a portfolio of customer-focused brands serving the needs of micro, small and medium sized businesses, resellers and consumers. These brands include Vistaprint, our global brand for micro business marketing products and services, as well as brands that we have acquired that serve the needs of various market segments, including resellers, micro, small and medium sized businesses with differentiated service needs, and consumers purchasing products for themselves and their families.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and, accordingly, do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting primarily of normal recurring accruals, considered necessary for fair presentation of the results of operations for the interim periods reported and of our financial condition as of the date of the interim balance sheet have been included.

The consolidated financial statements include the accounts of Cimpress N.V., its wholly owned subsidiaries, entities in which we maintain a controlling financial interest, and those entities in which we have a variable interest and are the primary beneficiary. Intercompany balances and transactions have been eliminated.

Operating results for the three and nine months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending June 30, 2018 or for any other period. The consolidated balance sheet at June 30, 2017 has been derived from our audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended June 30, 2017 included in our Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (the “SEC”).

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We believe our most significant estimates are associated with the ongoing evaluation of the recoverability of our long-lived assets and goodwill, estimated useful lives of assets, share-based compensation, accounting for business combinations, and income taxes and related valuation allowances, among others. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results could differ from those estimates.

Share-based compensation

Total share-based compensation costs were$13,492 and $33,718 for the three and nine months ended March 31, 2018, respectively, and $12,797 and $35,645 for the three and nine months ended March 31, 2017, respectively.

During the first quarter of fiscal 2018, we issued supplemental performance share unit awards to certain members of management. In addition to a service vesting and market condition (based on the three year moving average of the Cimpress share price) contained in our standard performance share units, these supplemental awards also contain a multi-year financial performance condition. The evaluation of achievement of the performance condition is at the discretion of the Compensation Committee and, therefore, the awards are subject to

6

mark-to-market accounting throughout the three year performance vesting period. The compensation expense for these awards is estimated at fair value using a Monte Carlo simulation valuation model and compensation costs are recorded only if it is probable that the performance condition will be achieved. We continue to conclude that the performance condition is probable of achievement and for the three and nine months ended March 31, 2018, we recognized $5,615 and $9,925 of share-based compensation expense, respectively. We will continue to reassess the probability each reporting period and if we determine the awards are not probable at some point during the performance vesting period we would reverse any expense recognized to date.

Sale of Albumprinter

On August 31, 2017 we sold our Albumprinter business, including FotoKnudsen AS, for a total of €78,382 ($93,071 based on the exchange rate as of the date of sale) in cash, net of transaction costs and cash divested (after $11,874 in pre-closing dividends). As a result of the sale, we recognized a gain of $47,545, net of transaction costs, within our consolidated statement of operations for the nine months ended March 31, 2018.

The transaction did not qualify for discontinued operations presentation, and as of June 30, 2017, the Albumprinter business assets and liabilities were presented as held-for-sale in our consolidated balance sheet. In connection with the divestiture, we entered into an agreement with Albumprinter under which Albumprinter will continue to fulfill photo book orders for our Vistaprint business. Additionally, we agreed to provide Albumprinter with certain transitional support services for a period of up to one year from the date of the sale.

Foreign Currency Translation

Our non-U.S. dollar functional currency subsidiaries translate their assets and liabilities denominated in their functional currency to U.S. dollars at current rates of exchange in effect at the balance sheet date, and revenues and expenses are translated at average rates prevailing throughout the period. The resulting gains and losses from translation are included as a component of accumulated other comprehensive loss. Transaction gains and losses and remeasurement of assets and liabilities denominated in currencies other than an entity’s functional currency are included in other (expense) income, net in our consolidated statements of operations.

Other (expense) income, net

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

	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
(Losses) gains on derivatives not designated as hedging instruments (1)	$	(9,102	)	$	(817	)	$	(19,103	)	$	12,737
Currency-related gains (losses), net (2)	7,519			(6,304		)	(7,133		)	5,719
Other gains (3)	25			539			634			3,379
Total other (expense) income, net	$	(1,558	)	$	(6,582	)	$	(25,602	)	$	21,835

_____________________

(1) Primarily relates to both realized and unrealized (losses) gains on derivative currency forward and option contracts not designated as hedging instruments.

(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 gains (losses), net for the three and nine months ended March 31, 2018 and 2017 are primarily driven by this intercompany activity. In addition, we have certain cross-currency swaps designated as cash flow hedges, which hedge the remeasurement of certain intercompany loans, both presented in the same component above. Unrealized losses related to cross-currency swaps were $3,582and $9,708for the three and nine months ended March 31, 2018, respectively, and unrealized losses of $1,709 and gains of $4,684 for the three and nine months ended March 31, 2017, respectively.

(3) During the nine months ended March 31, 2017, we recognized a gain of $2,268 related to the sale of Plaza Create Co. Ltd. available for sale securities.

Net (Loss) Income Per Share Attributable to Cimpress N.V.

Basic net (loss) income per share attributable to Cimpress N.V. is computed by dividing net (loss) income attributable to Cimpress N.V. by the weighted-average number of ordinary shares outstanding for the respective period. Diluted net (loss) income per share attributable to Cimpress N.V. gives effect to all potentially dilutive securities, including share options, restricted share units (“RSUs”), restricted share awards ("RSAs") and performance share units ("PSUs"), if the effect of the securities is dilutive using the treasury stock method. Awards

7

with performance or market conditions are included using the treasury stock method only if the conditions would have been met as of the end of the reporting period and their effect is dilutive.

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,
	2018	2017	2018	2017
Weighted average shares outstanding, basic	30,724,018	31,103,388	30,992,066	31,323,451
Weighted average shares issuable upon exercise/vesting of outstanding share options/RSUs/RSAs (1)	—	—	1,284,454	—
Shares used in computing diluted net (loss) income per share attributable to Cimpress N.V.	30,724,018	31,103,388	32,276,520	31,323,451
Weighted average anti-dilutive shares excluded from diluted net (loss) income per share attributable to Cimpress N.V.	1,448,530	1,262,902	3,054	1,379,481

______

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

Waltham Lease Arrangement

In July 2013, we executed a lease agreement to move our Lexington, Massachusetts, USA operations to a then yet to be constructed facility in Waltham, Massachusetts, USA. During the first quarter of fiscal 2016, the building was completed and we commenced lease payments in September 2015 and will make lease payments through September 2026.

For accounting purposes, we were deemed to be the owner of the Waltham building during the construction period, and accordingly we recorded the construction project costs incurred by the landlord as an asset with a corresponding financing obligation on our balance sheet. We evaluated the Waltham lease in the first quarter of fiscal 2016 and determined that the transaction did not meet the criteria for "sale-leaseback" treatment due to our planned subleasing activity over the term of the lease. Accordingly, we began depreciating the asset and incurring interest expense related to the financing obligation recorded on our consolidated balance sheet. We bifurcate the lease payments pursuant to the Waltham lease into (i) a portion that is allocated to the building and (ii) a portion that is allocated to the land on which the building was constructed. The portion of the lease obligations allocated to the land is treated as an operating lease that commenced in fiscal 2014.

Property, plant and equipment, net, included $112,956 and $116,045 as of March 31, 2018 and June 30, 2017, respectively, related to the building. The financing lease obligation and deferred rent credit related to the building on our consolidated balance sheets was $116,307 and $119,176 as of March 31, 2018 and June 30, 2017, respectively.

Treasury Shares

Treasury shares are accounted for using the cost method and are included as a component of shareholders' equity. During the nine months ended March 31, 2018 and 2017, we repurchased 895,377 and 593,763, respectively, of our ordinary shares for a total cost of $94,710 and $50,008, respectively, inclusive of transaction costs, in connection with our publicly announced share repurchase programs.

Recently Issued or Adopted Accounting Pronouncements

New Accounting Standards Adopted

In October 2016, the FASB issued Accounting Standards Update No. 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory" (ASU 2016-16), which requires the recognition for income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. We elected to early adopt the new standard during the first quarter of fiscal 2018, and recognized a reduction to prepaid and other current assets of $24,573, an increase in deferred tax assets of $18,710 and a cumulative-effect adjustment to retained earnings of $5,863. If we had not early adopted, the forecasted fiscal 2018 tax expense would be lower by $9,787.

8

Issued Accounting Standards to be Adopted

In August 2017, the FASB issued Accounting Standards Update No. 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (Topic 815)," (ASU 2017-12), which better aligns a company’s financial reporting for hedging activities with the economic objectives of those activities. The amendment is effective for us on July 1, 2019 and permits early adoption, including adoption in an interim period. The standard requires a modified retrospective transition approach, in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. We do not expect this standard to have material impact on our consolidated financial statements.

In May 2017, the FASB issued Accounting Standards Update No. 2017-09, "Compensation - Stock Compensation (Topic 718)," (ASU 2017-09), which clarifies the application of Topic 718 when accounting for changes in the terms and conditions of a share-based payment award. The new standard requires changes to the terms or conditions of a share-based payment award to be accounted for under modification accounting unless there is no change to the fair value, vesting conditions and classification of the award after modification. The amendment is effective for us on July 1, 2018 and permits early adoption. The amendment is to be applied prospectively, and we are currently evaluating the impact on our financial statements.

In November 2016, the FASB issued Accounting Standards Update No. 2016-18, "Statement of Cash Flows (Topic 230) Restricted Cash" (ASU 2016-18), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendment is effective for us on July 1, 2018 and permits early adoption. This amendment will affect the presentation of our statement of cash flows once adopted, and we do not expect it to have material impact on our consolidated financial statements.

In March 2016, the FASB issued Accounting Standards Update No. 2016-04, "Liabilities - Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products" (ASU 2016-04), which requires an entity to recognize breakage for a liability resulting from the sale of a prepaid stored-value product in proportion to the pattern of rights expected to be exercised by the product holder only to the extent that it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. The new standard is effective for us on July 1, 2018. The standard permits early adoption and should be applied either retrospectively to each period presented or by means of a cumulative adjustment to retained earnings as of the beginning of the fiscal year adopted. We do not expect the effect of ASU 2016-04 to have a material impact on our consolidated financial statements.

In March 2016, the FASB issued Accounting Standards Update No. 2016-02, "Leases (Topic 842)" (ASU 2016-02), which requires the recognition of lease assets and lease liabilities by lessees for those leases currently classified as operating leases. The standard also retains a distinction between finance leases and operating leases. The new standard is effective for us on July 1, 2019 and we expect to adopt the new standard using the modified retrospective approach. We also plan to use the transition relief package, in which we will not reassess the classification of our existing leases, whether any expired or existing contracts contain leases and if our existing leases have any initial direct costs. We are currently evaluating the requirements of the standard and we have not yet determined the impact of adoption on our consolidated financial statements.

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers" (ASU 2014-09), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This guidance will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for fiscal years beginning after December 15, 2017, which would result in an effective date for us of July 1, 2018. The standard permits the use of either the retrospective or modified retrospective method. We will adopt the new standard in the first quarter of fiscal 2019, and we will apply the modified retrospective approach.

We have substantially completed our impact assessment of the new standard, which was performed on a business unit by business unit basis through a review of contract terms and material revenue streams. We have identified an impact related to direct-response advertising costs, which are costs currently capitalized and expensed based on the guidance outlined in ASC 340. The guidance included in ASC 340 has been eliminated, and under the

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new revenue standard these costs will be expensed as incurred because they do not meet the requirements for capitalization since they are not direct and incremental to obtaining a contract. We expect this change to impact the timing for a portion of advertising expenses within our National Pen business, but we do not expect it to have a material impact on our consolidated results. We have also identified an impact related to customer loyalty programs that are offered by several of our businesses. Under the new revenue standard, the rewards associated with these programs will be recognized as an additional performance obligation, resulting in an allocation of the transaction price and deferral of revenue until the subsequent reward redemption. We do not expect this change to have a material impact on our consolidated results.

We are continuing to make changes to certain processes and internal controls, in order to address the impacts of the new standard, which we expect to finalize during the fourth quarter of fiscal 2018. Lastly, we are continuing to evaluate the disclosure requirements of the new standard.

3. Fair Value Measurements

We use a three-level valuation hierarchy for measuring fair value and include detailed financial statement disclosures about fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

• Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

• Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following tables summarize our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy:

	March 31, 2018
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Interest rate swap contracts	$	10,360		$	—	$	10,360		$	—
Currency forward contracts	26			—		26			—
Currency option contracts	11			—		11			—
Total assets recorded at fair value	$	10,397		$	—	$	10,397		$	—
Liabilities
Cross-currency swap contracts	$	(42,073	)	$	—	$	(42,073	)	$	—
Currency forward contracts	(37,885		)	—		(37,885		)	—
Currency option contracts	(685		)	—		(685		)	—
Total liabilities recorded at fair value	$	(80,643	)	$	—	$	(80,643	)	$	—

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	June 30, 2017
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Interest rate swap contracts	$	1,717		$	—	$	1,717		$	—
Total assets recorded at fair value	$	1,717		$	—	$	1,717		$	—
Liabilities
Interest rate swap contracts	$	(483	)	$	—	$	(483	)	$	—
Cross-currency swap contracts	(19,760		)	—		(19,760		)	—
Currency forward contracts	(14,700		)	—		(14,700		)	—
Currency option contracts	(651		)	—		(651		)	—
Contingent consideration	(5,453		)	—		—			(5,453		)
Total liabilities recorded at fair value	$	(41,047	)	$	—	$	(35,594	)	$	(5,453	)

During the quarter ended March 31, 2018 and year ended June 30, 2017, there were no significant transfers in or out of Level 1, Level 2 and Level 3 classifications.

The valuations of the derivatives intended to mitigate our interest rate and currency risk are determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each instrument. This analysis utilizes observable market-based inputs, including interest rate curves, interest rate volatility, or spot and forward exchange rates, and reflects the contractual terms of these instruments, including the period to maturity. We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparties' nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements.

Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to appropriately reflect both our own nonperformance risk and the respective counterparties' nonperformance risk in the fair value measurement. However, as of March 31, 2018, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 in the fair value hierarchy.

Contingent consideration obligations are measured at fair value and are based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The valuation of contingent consideration uses assumptions and estimates to forecast a range of outcomes and probabilities for the contingent consideration. Certain contingent consideration obligations are valued using a Monte Carlo simulation model. We assess these assumptions and estimates on a quarterly basis as additional data impacting the assumptions is obtained. Any changes in the fair value of contingent consideration related to updated assumptions and estimates will be recognized within general and administrative expenses in the consolidated statements of operations during the period in which the change occurs.

As part of the acquisition of WIRmachenDRUCK on February 1, 2016, we agreed to a variable contingent payment up to €40,000, previously based on the achievement of a cumulative gross profit target for calendar years 2016 and 2017. During the fourth quarter of fiscal 2017, we determined it was reasonably certain, based on recent performance, that the maximum earn-out would be achieved. Subsequently, during the first quarter of fiscal 2018, we amended the terms of this arrangement to remove the performance target and agreed to pay the maximum amount in January 2018. On January 2, 2018 we paid the maximum amount of €40,000 ($48,069 based on the exchange rate on the day of payment) and $5,951 of the amount paid is considered contingent consideration and included in the table below.

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The following table represents the changes in fair value of Level 3 contingent consideration:

	Nine Months Ended March 31,
	2018 (1)			2017 (1)
Balance at June 30, 2017 and 2016, respectively	$	5,453		$	1,212
Fair value adjustment	220			2,514
Cash payments	(5,951		)	—
Foreign currency impact	278			(89		)
Balance at March 31	$	—		$	3,637

_____________________

(1) As of June 30, 2017 and March 31, 2017, contingent consideration was classified as a current liability on the consolidated balance sheets. As of June 30, 2016 the liability was classified as a long-term liability on the consolidated balance sheet.

As of March 31, 2018 and June 30, 2017, the carrying amounts of our cash and cash equivalents, accounts receivable, accounts payable, and other current liabilities approximated their estimated fair values. As of March 31, 2018 and June 30, 2017 the carrying value of our debt, excluding debt issuance costs and debt discounts, was$820,182 and $882,578, respectively, and the fair value was $777,314and $906,744, respectively. Our debt at March 31, 2018 includes variable rate debt instruments indexed to LIBOR that resets periodically and fixed rate debt instruments. The estimated fair value of our debt was determined using available market information based on recent trades or activity of debt instruments with substantially similar risks, terms and maturities, which fall within Level 2 under the fair value hierarchy. The estimated fair value of assets and liabilities disclosed above may not be representative of actual values that could have been or will be realized in the future.

4. Derivative Financial Instruments

We use derivative financial instruments, such as interest rate swap contracts, cross-currency swap contracts, and currency forward and option contracts, to manage interest rate and foreign currency exposures. Derivatives are recorded in the consolidated balance sheets at fair value. If the derivative is designated as a cash flow hedge or net investment hedge, then the effective portion of changes in the fair value of the derivative is recorded in accumulated other comprehensive loss and is subsequently reclassified into earnings in the period the hedged forecasted transaction affects earnings. If a derivative is deemed to be ineffective, then the ineffective portion of the change in fair value of the derivative is recognized directly in earnings. The change in the fair value of derivatives not designated as hedges is recognized directly in earnings, as a component of other (expense) income, net.

Hedges of Interest Rate Risk

We enter into interest rate swap contracts to manage variability in the amount of our known or expected cash payments related to a portion of our debt. Our objective in using interest rate swaps is to add stability to interest expense and to manage our exposure to interest rate movements. We designate our interest rate swaps as cash flow hedges. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for us making fixed-rate payments over the life of the contract agreements without exchange of the underlying notional amount. Realized gains or losses from interest rate swaps are recorded in earnings, as a component of interest expense, net. A portion of seven of our interest rate swap contracts were deemed to be ineffective during the three and nine months ended March 31, 2018 and during the three and nine months ended March 31, 2017 a portion of two of our interest rate swap contracts was deemed to be ineffective.

Amounts reported in accumulated other comprehensive loss related to interest rate swap contracts will be reclassified to interest expense as interest payments are accrued or made on our variable-rate debt. As of March 31, 2018, we estimate that $119 of income will be reclassified from accumulated other comprehensive loss to interest expense during the twelve months ending March 31, 2019. As of March 31, 2018, we had nine outstanding interest rate swap contracts indexed to one-month LIBOR.These instruments were designated as cash flow hedges of interest rate risk and have varying start dates and maturity dates through December 2025.

Interest rate swap contracts outstanding:	Notional Amounts
Contracts accruing interest as of March 31, 2018	$	65,000
Contracts with a future start date	350,000
Total	$	415,000

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Hedges of Currency Risk

Cross-Currency Swap Contracts

From time to time, we execute cross-currency swap contracts designated as cash flow hedges or net investment hedges. Cross-currency swaps involve an initial receipt of the notional amount in the hedge currency in exchange for our reporting currency based on a contracted exchange rate. Subsequently, we receive fixed rate payments in our reporting currency in exchange for fixed rate payments in the hedged currency over the life of the contract. At maturity, the final exchange involves the receipt of our reporting currency in exchange for the notional amount in the hedged currency.

Cross-currency swap contracts designated as cash flow hedges are executed to mitigate our currency exposure to the interest receipts as well as the principal remeasurement and repayment associated with certain intercompany loans denominated in a currency other than our reporting currency, the U.S. Dollar.As of March 31, 2018, we had two outstanding cross-currency swap contracts designated as cash flow hedges with a total notional amount of $120,011, both maturing during June 2019. We entered into the two cross-currency swap contracts to hedge the risk of changes in one Euro denominated intercompany loan entered into with one of our consolidated subsidiaries that has the Euro as its functional currency.

Amounts reported in accumulated other comprehensive loss will be reclassified to other (expense) income, net as interest payments are accrued or paid and upon remeasuring the intercompany loan. As of March 31, 2018, we estimate that $865 of income will be reclassified from accumulated other comprehensive loss to interest expense, net during the twelve months ending March 31, 2019.

Cross-currency swap contracts designated as net investment hedges are executed to mitigate our currency exposure of net investments in subsidiaries that have reporting currencies other than the U.S. Dollar. As of March 31, 2018, we had two outstanding cross-currency swap contracts designated as net investment hedges with a total notional amount of $122,969, both maturing during April 2019. We entered into the two cross-currency swap contracts to hedge the risk of changes in the U.S. Dollar equivalent value of a portion of our net investment in a consolidated subsidiary that has the Euro as its functional currency. Amounts reported in accumulated other comprehensive loss are recognized as a component of our cumulative translation adjustment.

We did not hold any ineffective cross-currency swaps during the three and nine months ended March 31, 2018 and 2017.

Other Currency Contracts

We execute currency forward and option contracts in order to mitigate our exposure to fluctuations in various currencies against our reporting currency, the U.S. Dollar.

As of March 31, 2018, we had six currency forward contracts designated as net investment hedges with a total notional amount of $175,262, maturing during various dates through October 2022. We entered into these contracts to hedge the risk of changes in the U.S. Dollar equivalent value of a portion of our net investment in a consolidated subsidiary that has the Euro as its functional currency. Amounts reported in accumulated other comprehensive loss are recognized as a component of our cumulative translation adjustment.

We have elected to not apply hedge accounting for all other currency forward and option contracts. During the three and nine months ended March 31, 2018 and 2017, we have experienced volatility within other (expense) income, net in our consolidated statements of operations from unrealized gains and losses on the mark-to-market of outstanding currency forward and option contracts. We expect this volatility to continue in future periods for contracts for which we do not apply hedge accounting. Additionally, since our hedging objectives may be targeted at non-GAAP financial metrics that exclude non-cash items such as depreciation and amortization, we may experience increased, not decreased, volatility in our GAAP results as a result of our currency hedging program.

As of March 31, 2018, we had the following outstanding currency derivative contracts that were not designated for hedge accounting and were used to hedge fluctuations in the U.S. Dollar value of forecasted transactions denominated in Australian Dollar, British Pound, Canadian Dollar, Danish Krone, Euro, Indian Rupee,

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Mexican Peso, New Zealand Dollar, Norwegian Krone, and Swedish Krona:

Notional Amount	Effective Date	Maturity Date	Number of Instruments	Index
$512,301	January 2017 through March 2018	Various dates through March 2020	489	Various

Financial Instrument Presentation

The table below presents the fair value of our derivative financial instruments as well as their classification on the balance sheet as of March 31, 2018 and June 30, 2017. Our derivative asset and liability balances will fluctuate with interest rate and currency exchange rate volatility. Our derivative liabilities have increased significantly during the nine months ended March 31, 2018 mainly due to the weakening of the US dollar.

	March 31, 2018
	Asset Derivatives								Liability Derivatives
Derivatives designated as hedging instruments	Balance Sheet line item	Gross amounts of recognized assets		Gross amount offset in consolidated balance sheet			Net amount		Balance Sheet line item	Gross amounts of recognized liabilities			Gross amount offset in consolidated balance sheet		Net amount
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps	Other non-current assets	$	10,452	$	(92	)	$	10,360	Other current liabilities / other liabilities	$	—		$	—	$	—
Cross-currency swaps	Other non-current assets	—		—			—		Other liabilities	(18,897		)	—		(18,897		)
Derivatives in Net Investment Hedging Relationships
Cross-currency swaps	Other non-current assets	—		—			—		Other liabilities	(23,176		)	—		(23,176		)
Currency forward contracts	Other non-current assets	—		—			—		Other liabilities	(23,831		)	—		(23,831		)
Total derivatives designated as hedging instruments		$	10,452	$	(92	)	$	10,360		$	(65,904	)	$	—	$	(65,904	)
Derivatives not designated as hedging instruments
Currency forward contracts	Other current assets / other assets	$	26	$	—		$	26	Other current liabilities / other liabilities	$	(15,361	)	$	1,307	$	(14,054	)
Currency option contracts	Other current assets / other assets	11		—			11		Other current liabilities / other liabilities	(814		)	129		(685		)
Total derivatives not designated as hedging instruments		$	37	$	—		$	37		$	(16,175	)	$	1,436	$	(14,739	)

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	June 30, 2017
	Asset Derivatives								Liability Derivatives
Derivatives designated as hedging instruments	Balance Sheet line item	Gross amounts of recognized assets		Gross amount offset in consolidated balance sheet			Net amount		Balance Sheet line item	Gross amounts of recognized liabilities			Gross amount offset in consolidated balance sheet		Net amount
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps	Other non-current assets	$	2,072	$	(355	)	$	1,717	Other current liabilities / other liabilities	$	(483	)	$	—	$	(483	)
Cross-currency swaps	Other non-current assets	—		—			—		Other liabilities	(7,640		)	—		(7,640		)
Derivatives in Net Investment Hedging Relationships
Cross-currency swaps	Other non-current assets	—		—			—		Other liabilities	(12,120		)	—		(12,120		)
Currency forward contracts	Other non-current assets	—		—			—		Other liabilities	(9,896		)	—		(9,896		)
Total derivatives designated as hedging instruments		$	2,072	$	(355	)	$	1,717		$	(30,139	)	$	—	$	(30,139	)
Derivatives not designated as hedging instruments
Currency forward contracts	Other current assets / other assets	$	—	$	—		$	—	Other current liabilities / other liabilities	$	(8,033	)	$	3,229	$	(4,804	)
Currency Option Contracts	Other current assets / other assets	—		—			—		Other current liabilities / other liabilities	(651		)	—		(651		)
Total derivatives not designated as hedging instruments		$	—	$	—		$	—		$	(8,684	)	$	3,229	$	(5,455	)

The following table presents the effect of the effective portion of our derivative financial instruments designated as hedging instruments and their classification within comprehensive income (loss) for the three and nine months ended March 31, 2018 and 2017:

Derivatives in Hedging Relationships	Amount of Gain (Loss) Recognized in Comprehensive Income (Loss) on Derivatives
	Three Months Ended March 31,						Nine Months Ended March 31,
In thousands	2018			2017			2018			2017
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps	$	6,087		$	314		$	7,330		$	3,078
Cross-currency swaps	2,321			(740		)	5,492			3,971
Derivatives in Net Investment Hedging Relationships
Cross-currency swaps	(3,873		)	(841		)	(10,307		)	3,983
Currency forward contracts	(5,576		)	(802		)	(13,935		)	137
	$	(1,041	)	$	(2,069	)	$	(11,420	)	$	11,169

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The following table presents reclassifications out of accumulated other comprehensive loss for the three and nine months ended March 31, 2018 and 2017:

Details about Accumulated Other Comprehensive Loss Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) to Net (Loss) Income												Affected line item in the Statement of Operations
	Three Months Ended March 31,						Nine Months Ended March 31,
In thousands	2018			2017			2018			2017
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps	$	100		$	(61	)	$	(6	)	$	(100	)	Interest expense, net
Cross-currency swaps	(3,321		)	(1,131		)	(8,756		)	6,366			Other (expense) income, net
Total before income tax	(3,221		)	(1,192		)	(8,762		)	6,266			Income (loss) before income taxes
Income tax	805			297			2,212			(1,568		)	Income tax expense
Total	$	(2,416	)	$	(895	)	$	(6,550	)	$	4,698

The following table presents the adjustment to fair value recorded within the consolidated statements of operations for derivative instruments for which we did not elect hedge accounting, as well as the effect of the ineffective portion and de-designated derivative financial instruments that no longer qualify as hedging instruments in the period:

	Amount of Gain (Loss) Recognized in Net (Loss) Income											Location of Gain (Loss) Recognized in Income (Ineffective Portion)
	Three Months Ended March 31,						Nine Months Ended March 31,
In thousands	2018			2017			2018			2017
Derivatives not designated as hedging instruments
Currency contracts	$	(9,103	)	$	(820	)	$	(19,382	)	$	12,481	Other (expense) income, net
Interest rate swaps	1			3			279			256		Other (expense) income, net
	$	(9,102	)	$	(817	)	$	(19,103	)	$	12,737

5. Accumulated Other Comprehensive Loss

The following table presents a roll forward of amounts recognized in accumulated other comprehensive loss by component, net of tax of$(3,237)for the nine months ended March 31, 2018:

	Gains (losses) on cash flow hedges (1)			Gains (losses) on pension benefit obligation			Translation adjustments, net of hedges (2)			Total
Balance as of June 30, 2017	$	(2,250	)	$	(357	)	$	(110,791	)	$	(113,398	)
Other comprehensive income (loss) before reclassifications	12,822			—			24,650			37,472
Amounts reclassified from accumulated other comprehensive loss to net (loss) income	(6,550		)	—			—			(6,550		)
Net current period other comprehensive income (loss)	6,272			—			24,650			30,922
Balance as of March 31, 2018	$	4,022		$	(357	)	$	(86,141	)	$	(82,476	)

________________________

(1) Gains (losses) on cash flow hedges include our interest rates swap and cross-currency swap contracts designated in cash flow hedging relationships.

(2) As of March 31, 2018 and June 30, 2017, the translation adjustment is inclusive of the effects of our net investment hedges, of which, unrealized losses of $41,290 and $17,048, respectively, net of tax, have been included in accumulated other comprehensive loss.

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6. Goodwill and Acquired Intangible Assets

Goodwill

The carrying amount of goodwill by reportable segment as of March 31, 2018 and June 30, 2017 is as follows:

	Vistaprint			Upload and Print		National Pen			All Other Businesses		Total
Balance as of June 30, 2017	$	147,207		$	321,805	$	34,520		$	11,431	$	514,963
Adjustments	(58		)	—		(86		)	—		(144		)
Effect of currency translation adjustments (1)	2,706			24,844		—			—		27,550
Balance as of March 31, 2018	$	149,855		$	346,649	$	34,434		$	11,431	$	542,369

_________________

(1) Relates to goodwill held by subsidiaries whose functional currency is not the U.S. Dollar.

Acquired Intangible Assets

Acquired intangible assets amortization expense for the three and nine months ended March 31, 2018 was $12,941 and $38,132,respectively, compared to $13,450 and $33,542 for the prior comparative periods, respectively. In addition, during the three and nine months ended March 31, 2017, we recognized an impairment of $3,211, related to the acquired intangible assets within the Tradeprint asset group. Refer below for additional discussion regarding the impairment.

Impairment Review

Fiscal 2017

During the third quarter of fiscal 2017, we concluded that the goodwill of our Tradeprint reporting unit, part of our Upload and Print reportable segment, was not fully recoverable as the reporting unit was forecasting lower profits than originally forecasted as of the acquisition date. This resulted in an impairment of goodwill of $6,345 and an impairment of acquired intangible assets of $3,211 during the quarter ended March 31, 2017.

7. Other Balance Sheet Components

Accrued expenses included the following:

	March 31, 2018		June 30, 2017
Compensation costs	$	59,908	$	54,487
Income and indirect taxes	45,691		34,469
Advertising costs	28,001		26,641
Interest payable	10,335		5,263
Production costs	9,558		7,472
Shipping costs	6,817		6,651
Sales returns	5,722		4,474
Professional fees	3,138		3,021
Purchases of property, plant and equipment	2,077		3,786
Other	39,160		29,303
Total accrued expenses	$	210,407	$	175,567

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Other current liabilities included the following:

	March 31, 2018		June 30, 2017
Contingent earn-out liability (1)	$	—	$	44,049
Current portion of lease financing obligation	12,569		12,569
Short-term derivative liabilities	17,184		7,243
Current portion of capital lease obligations	11,521		11,573
Mandatorily redeemable noncontrolling interest (2)	1,144		901
Other	504		2,100
Total other current liabilities	$	42,922	$	78,435

Other liabilities included the following:

	March 31, 2018		June 30, 2017
Long-term derivative liabilities	$	64,986	$	31,936
Long-term capital lease obligations	20,458		28,306
Mandatorily redeemable noncontrolling interest (2)	2,757		2,456
Other (3)	32,409		31,985
Total other liabilities	$	120,610	$	94,683

_______________________

(1) On January 2, 2018, we paid the contingent earn-out liability in full, refer to the summary below for additional details.

(2) Relates to the mandatorily redeemable noncontrolling interest of Printi LLC. Refer to Note 11 for additional details.

(3) As of March 31, 2018 and June 30, 2017, other liabilities includes $9,773 and $8,173, respectively, related to share-based compensation awards associated with our investment in Printi LLC. Refer to Note 11 for additional details.

Contingent earn-out liability

Under the original terms of the WIRmachenDRUCK earn-out arrangement, a portion of the earn-out attributed to the minority selling shareholders was included as a component of purchase consideration as of the acquisition date, with any subsequent changes to fair value recognized within general and administrative expense. This earn-out was previously calculated on a sliding scale, based on the achievement of cumulative gross profit against a predetermined target. During the fourth quarter of fiscal 2017, we determined it was reasonably certain, that the maximum earn-out would be achieved and we paid the maximum amount on January 2, 2018. Refer to Note 3 of the consolidated financial statements for additional details of this payment.

The liability represented the present value of the agreed payment amount as of the respective date. We recognized $1,774 of expense during the nine months ended March 31, 2018, and $4,598 and $27,364 of expense during the three and nine months ended March 31, 2017, respectively, as part of general and administrative expense. We recognized no expense during the three months ended March 31, 2018.

8. Debt

	March 31, 2018			June 30, 2017
Senior secured credit facility	$	537,276		$	600,037
7.0% Senior unsecured notes due 2022	275,000			275,000
Other	7,906			7,541
Debt issuance costs and debt discounts (1)	(7,567		)	(5,922		)
Total debt outstanding, net	812,615			876,656
Less short-term debt (2)	26,214			28,926
Long-term debt	$	786,401		$	847,730

_____________________

(1) During the nine months ended March 31, 2018, we capitalized $3,251 in debt issuance costs, which related to the amendment and restatement to our senior secured credit facility. Refer below for additional details relating to the amendment.

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(2) Balances as of March 31, 2018 and June 30, 2017 are inclusive of short-term debt issuance costs and debt discounts of $1,846 and $1,693, respectively.

Our Debt

Our various debt arrangements described below contain customary representations, warranties and events of default. As of March 31, 2018, we were in compliance with all financial and other covenants related to our debt.

Senior Secured Credit Facility

On July 13, 2017, we entered into an amendment and restatement agreement for our senior secured credit facility resulting in an increase of loan commitments under the credit agreement to $1,045,000 in the aggregate. The amendment also extended the tenor of our borrowings to a maturity date of July 13, 2022. As of March 31, 2018, we have a committed credit facility of $1,033,750 as follows:

• Revolving loans of $745,000 with a maturity date of July 13, 2022

• Term loan of $288,750 amortizing over the loan period, with a final maturity date of July 13, 2022.

Under the terms of our credit agreement, borrowings bear interest at a variable rate of interest based on LIBOR plus 1.50% to 2.25% depending on our leverage ratio, which is the ratio of our consolidated total indebtedness to our consolidated EBITDA, as defined by the credit agreement. As of March 31, 2018, the weighted-average interest rate on outstanding borrowings was 3.56%, inclusive of interest rate swap rates. We are also required to pay a commitment fee on unused balances of 0.225% to 0.400% depending on our leverage ratio. We have pledged the assets and/or share capital of several of our subsidiaries as collateral for our outstanding debt as of March 31, 2018.

Indenture and Senior Unsecured Notes due 2022

On March 24, 2015, we completed a private placement of $275,000 in aggregate principal amount of 7.0% senior unsecured notes due 2022 (the “Notes”). We issued the Notes pursuant to a senior notes indenture dated as of March 24, 2015 among Cimpress N.V., our subsidiary guarantors, and MUFG Union Bank, N.A., as trustee (the "Indenture"). We used the proceeds from the Notes to pay outstanding indebtedness under our unsecured line of credit and our senior secured credit facility and for general corporate purposes.

The Notes bear interest at a rate of 7.0% per annum and mature on April 1, 2022. Interest on the Notes is payable semi-annually on April 1 and October 1 of each year, commencing on October 1, 2015, to the holders of record of the Notes at the close of business on March 15 and September 15, respectively, preceding such interest payment date.

The Notes are senior unsecured obligations and rank equally in right of payment to all our existing and future senior unsecured debt and senior in right of payment to all of our existing and future subordinated debt. The Notes are effectively subordinated to any of our existing and future secured debt to the extent of the value of the assets securing such debt. Subject to certain exceptions, each of our existing and future subsidiaries that is a borrower under or guarantees our senior secured credit facilities will guarantee the Notes.

The Indenture contains various covenants, including covenants that, subject to certain exceptions, limit our and our restricted subsidiaries’ ability to incur and/or guarantee additional debt; pay dividends, repurchase shares or make certain other restricted payments; enter into agreements limiting dividends and certain other restricted payments; prepay, redeem or repurchase subordinated debt; grant liens on assets; enter into sale and leaseback transactions; merge, consolidate or transfer or dispose of substantially all of our consolidated assets; sell, transfer or otherwise dispose of property and assets; and engage in transactions with affiliates.

We had the right to redeem, at any time prior to April 1, 2018, some or all of the Notes at a redemption price equal to 100% of the principal amount redeemed, plus a make-whole amount as set forth in the Indenture, plus, in each case, accrued and unpaid interest to, but not including, the redemption date. In addition, we had the right to redeem, at any time prior to April 1, 2018, up to 35% of the aggregate outstanding principal amount of the Notes at a redemption price equal to 107% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the redemption date, with the net proceeds of certain equity offerings by Cimpress. To date we have not

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exercised our redemption right; however if in the future we choose to exercise we will redeem some or all of the Notes at the redemption prices specified in the Indenture, plus accrued and unpaid interest to, but not including, the redemption date.

Other debt

Other debt consists primarily of term loans acquired through our various acquisitions. As of March 31, 2018 and June 30, 2017 we had$7,906 and $7,541, respectively, outstanding for those obligations that are payable through September 2024.

9. Income Taxes

Our income tax expensewas$4,019 and $19,657 for the three and nine months ended March 31, 2018, respectively, as compared to income tax benefits of $17,431 and $7,644 for the prior comparative periods. The increase in income tax expense is primarily attributable to pre-tax income for the three and nine months ended March 31, 2018 as compared to pre-tax losses in the comparable periods. Additionally, we recognized tax expense of $4,742 related to the impacts of U.S. tax reform recognized in the nine months ended March 31, 2018. We recognize excess tax benefits associated with the vesting or exercise of share based compensation awards as a discrete tax item. During the three and nine months ended March 31, 2018, we recognized excess tax benefits from share based compensation of $1,329 and $2,802, respectively, as compared to $45 and $4,659 for the comparable prior periods. Excluding the effect of these discrete tax items, we are forecasting a more favorable consolidated annual effective tax rate for fiscal 2018 as compared to fiscal 2017 primarily due to higher forecasted full year pre-tax income as well as a more favorable geographical mix of consolidated earnings. In addition, our effective tax rate is negatively impacted by losses in certain jurisdictions where we are unable to recognize a full tax benefit in the current period.

On December 22, 2017, the Tax Cuts and Jobs Act ("The Act") was signed into law, resulting in significant changes to U.S. tax law for corporations. Our tax balances were adjusted during the quarter ended December 31, 2017 based upon our interpretation of The Act, although the final impact on our tax balances may change due to the issuance of additional guidance, changes in our interpretation of The Act, changes in assumptions made by Cimpress, and actions Cimpress may take as a result of The Act. There were no material changes to our tax balances for the three months ended March 31, 2018 as a result of The Act. We will continue to review and assess the potential impact of any new information on our financial statement positions.

On October 1, 2013, we made changes to our corporate entity operating structure, including transferring our intellectual property among certain of our subsidiaries, primarily to align our corporate entities with our evolving operations and business model. Our subsidiary based in Switzerland was the recipient of the intellectual property. In accordance with Swiss tax law, we are entitled to amortize the fair market value of the intellectual property received at the date of transfer over five years for tax purposes. As a result of this amortization, we are expecting a loss for Swiss tax purposes during fiscal 2018.

As of March 31, 2018, we had a liability for unrecognized tax benefits included in the balance sheet of $4,872, including accrued interest and penalties of $355. We recognize interest and, if applicable, penalties related to unrecognized tax benefits in the provision for income taxes. If recognized, the entire liability for unrecognized tax benefits would reduce our income tax expense. It is reasonably possible that a reduction in unrecognized tax benefits may occur within the next twelve months in the range of $600 to $800 related to the lapse of applicable statutes of limitations. We believe we have appropriately provided for all tax uncertainties.

We conduct business in a number of tax jurisdictions and, as such, are required to file income tax returns in multiple jurisdictions globally. The years 2015 through 2017 remain open for examination by the United States Internal Revenue Service (“IRS”) and the years 2012 through 2017 remain open for examination in the various states and non-US tax jurisdictions in which we file tax returns. We believe that our income tax reserves are adequately maintained taking into consideration both the technical merits of our tax return positions and ongoing developments in our income tax audits. However, the final determination of our tax return positions, if audited, is uncertain, and there is a possibility that final resolution of these matters could have a material impact on our results of operations or cash flows.

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10. Noncontrolling Interests

In certain of our strategic investments we own a controlling equity stake, but a third party owns a minority portion of the equity. The balance sheet and operating activity of these entities are included in our consolidated financial statements and we adjust the net income in our consolidated statement of operations to exclude the noncontrolling interests' proportionate share of results. We present the proportionate share of equity attributable to the redeemable noncontrolling interests as temporary equity within our consolidated balance sheet and the proportionate share of noncontrolling interests not subject to a redemption provision that is outside of our control as equity.

Redeemable noncontrolling interests

On April 15, 2015, we acquired 70% of the outstanding shares of Exagroup SAS. The remaining 30% is considered a redeemable noncontrolling equity interest, as it is redeemable in the future and not solely within our control. The Exagroup noncontrolling interest, redeemable at a fixed amount of €39,000, was recorded at its fair value as of the acquisition date and will be adjusted to its redemption value on a periodic basis, if that amount exceeds its carrying value. As of March 31, 2018, the redemption value was less than the carrying value, and therefore no adjustment was required.

On August 23, 2017, we sold approximately 12% of the outstanding shares of our WIRmachenDRUCK subsidiary for a total of €30,000 ($35,390 based on the exchange rate on the date we received the proceeds). The minority equity interest is considered a redeemable noncontrolling interest, as it is redeemable for cash based on future financial results through put and call rights and not solely within our control. The noncontrolling interest was recorded at its fair value as of the sale date and will be adjusted to its redemption value on a periodic basis, with an offset to retained earnings, if that amount exceeds its carrying value. If the formulaic redemption value exceeds the fair value of the noncontrolling interest, then the accretion to redemption value will be offset to the net (income) loss attributable to noncontrolling interest in our consolidated statement of operations. As of March 31, 2018, the redemption value was less than the carrying value, and therefore no adjustment was required.

The following table presents the reconciliation of changes in our noncontrolling interests:

	Redeemable noncontrolling interests		Noncontrolling interest
Balance as of June 30, 2017	$	45,412	$	213
Net income attributable to noncontrolling interest	1,320		74
Proceeds from sale of noncontrolling interest	35,390		—
Foreign currency translation	5,683		—
Balance as of March 31, 2018	$	87,805	$	287

11. Variable Interest Entity ("VIE")

On August 7, 2014, we made a capital investment in Printi LLC, which operates in Brazil. This investment provided us access to a new market and the opportunity to drive longer-term growth in Brazil and other geographies as Printi expands internationally in the future. As of March 31, 2018, we have a 49.99% equity interest in Printi. Based upon the level of equity investment at risk, Printi is considered a variable interest entity. The shareholders of Printi share profits and voting control on a pro-rata basis. While we do not manage the day to day operations of Printi, we do have the unilateral ability to exercise participating voting rights for specific transactions, and as such no one shareholder is considered to be the primary beneficiary. However, certain significant shareholders cannot transfer their equity interests without our approval and as a result are considered de facto agents on our behalf in accordance with ASC 810-10-25-43.

In aggregating our rights, as well as those of our de facto agents, the group as a whole has the power to direct the activities that most significantly impact the entity's economic performance, the obligation to absorb losses and the right to receive benefits from the entity. In situations where a de facto agency relationship is present, one party is required to be identified as the primary beneficiary, and the evaluation requires significant judgment. The factors considered include the presence of a principal/agent relationship, the relationship and significance of activities to the reporting entity, the variability associated with the VIE's anticipated economics and the design of the VIE. The analysis is qualitative in nature and is based on weighting the relative importance of each of the factors in relation to the specifics of the VIE arrangement. Upon our investment we performed an analysis and concluded that

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we are the party that is most closely associated with Printi, as we are most exposed to the variability of the economics and therefore considered the primary beneficiary.

We will purchase an additional 3.7% non-voting economic interest during the fourth quarter of fiscal 2018. In addition, we will acquire the remaining equity interest in Printi through a reciprocal put and call structure, exercisable from March 31, 2021 through a mandatory redemption date of July 31, 2023. As the remaining equity interests are mandatorily redeemable by all parties no later than a specified future date, the noncontrolling interest is within the scope of ASC 480 and is required to be presented as a liability on our consolidated balance sheet. We adjust the liability to its estimated redemption value each reporting period and recognize any changes within interest expense, net in our consolidated statement of operations.

We also have liability-based awards for Printi restricted stock held by Printi employees that are fully vested and marked to fair value each reporting period until cash settlement. As of March 31, 2018, through the use of an option pricing model we estimate the current fair value of the restricted stock to be $9,773 and we have recognized $1,047 in general and administrative expense for the nine months ended March 31, 2018, respectively, compared to $374 and $1,158 in the three and nine months ended March 31, 2017.

We also have an arrangement to lend two Printi equity holders up to $24,000 that is payable on the date the put or call option is exercised, which will occur no later than July 31, 2023. As of March 31, 2018, the long-term loan receivable, including accrued interest, is $17,251 and classified within other assets in our consolidated balance sheets. We did not have a long-term loan receivable as of June 30, 2017. The loans carry 8.5% annual interest, and are not contingent upon continued employment. We expect that the loan proceeds will be used to offset our purchase of the remaining noncontrolling interest in the future.

12. 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, 2018 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 the operations of our Most of World and Corporate Solutions businesses. Most of World consists of our businesses in Brazil, China, India and Japan. In Japan and India, we primarily operate under close derivatives of the Vistaprint business model and technology, albeit with decentralized, locally managed cross-functional operations in each country, and with product, content and service offerings which we tailor to the Japanese and Indian markets. Our Corporate Solutions business serves medium-sized businesses and larger corporations, as well as our legacy business with retail partners and franchise businesses, primarily through the "Vistaprint Corporate" brand. Our All Other Businesses segment also includes Albumprinter results through the divestiture date of August 31, 2017.

Central and corporate costs consists 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 Supervisory Board, CEO, and the team members necessary for managing corporate activities, such as treasury, tax, capital allocation, financial consolidation, and legal. These costs also include certain unallocated share-based compensation costs.

During the first quarter of fiscal 2018, we began presenting inter-segment fulfillment activity as revenue for the fulfilling business unit for purposes of measuring and reporting our segment financial performance. Any

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historical inter-segment fulfillment transactions were previously recognized as cost relief for the fulfilling business unit in our presentation to the CODM. We now recognize these transactions as inter-segment revenue for presentation to the CODM; for example, a third-party customer order received by our Corporate Solutions business that is fulfilled at one of our Vistaprint production facilities is recognized as inter-segment revenue for our Vistaprint business based on pricing and terms agreed upon between segment management. Inter-segment revenues are recognized only for transactions between our reportable segments and do not include any transactions between businesses within a reportable segment, which are eliminated within each reportable segment. Intercompany revenues are eliminated in our consolidated results.

As part of these changes, we also recast historical segment results to ensure the consistent application of our current inter-segment revenue presentation. For the three and nine months ended March 31, 2017, we increased revenue for our Vistaprint business by $1,550 and $4,069, with a corresponding increase to inter-segment eliminations. We also recast historical segment profitability for the allocation of certain IT costs, which previously burdened our Vistaprint business, but have now been allocated to each of our businesses in fiscal 2018. For the three and nine months ended March 31, 2017, the cost allocation change resulted in an increase to Vistaprint segment profit by $624 and $1,871, respectively, with a corresponding decrease to segment profit for Upload and Print of $161 and $483, respectively, and All Other Businesses of $140 and $420, respectively, and an increase to our Central and corporate cost center of $323 and $968, respectively.

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.

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 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 our Most of World and Corporate Solutions 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, segment profit (loss), total income from operations and total income before income taxes.

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	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
Revenue:
Vistaprint (1)	$	357,606		$	322,804		$	1,105,557		$	990,160
Upload and Print (2)	183,768			142,476			536,685			426,821
National Pen (3)	81,545			58,828			267,360			58,828
All Other Businesses (4)	18,865			28,027			67,913			99,410
Total segment revenue	641,784			552,135			1,977,515			1,575,219
Inter-segment eliminations	(5,715		)	(1,550		)	(16,108		)	(4,070		)
Total consolidated revenue	$	636,069		$	550,585		$	1,961,407		$	1,571,149

_____________________

(1) Vistaprint segment revenues include inter-segment revenue of $2,747 and $7,753 for the three and nine months ended March 31, 2018, respectively, and $1,550 and $4,069 for the prior comparative periods, respectively.

(2) Upload and Print segment revenues include inter-segment revenue of $329 and $1,137for the three and nine months ended March 31, 2018, respectively. No inter-segment revenue was recognized in the prior comparable periods.

(3) National Pen segment revenues include inter-segment revenue of $805 and $2,275for the three and nine months ended March 31, 2018, respectively. No inter-segment revenue was recognized in the prior comparable periods.

(4) All Other Businesses segment revenues include inter-segment revenue of $1,834 and $4,943 for the three and nine months ended March 31, 2018, respectively. No inter-segment revenue was recognized in the prior comparable periods.

	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
Segment profit (loss):
Vistaprint	$	57,661		$	37,627		$	187,605		$	129,915
Upload and Print	17,367			12,983			54,605			43,232
National Pen	355			(3,226		)	19,185			(3,226		)
All Other Businesses	(9,342		)	(10,085		)	(25,459		)	(21,944		)
Total segment profit	66,041			37,299			235,936			147,977
Central and corporate costs	(35,891		)	(28,028		)	(97,558		)	(87,442		)
Acquisition-related amortization and depreciation	(13,030		)	(13,508		)	(38,330		)	(33,740		)
Earn-out related charges (1)	—			(4,882		)	(2,391		)	(28,139		)
Share-based compensation related to investment consideration	—			(375		)	(1,047		)	(5,079		)
Certain impairments (2)	—			(9,556		)	—			(9,556		)
Restructuring-related charges	(2,331		)	(24,790		)	(14,686		)	(25,890		)
Interest expense for Waltham, MA lease	1,838			1,897			5,645			5,823
Gain on the purchase or sale of subsidiaries (3)	—			—			48,380			—
Total income (loss) from operations	16,627			(41,943		)	135,949			(36,046		)
Other (expense) income, net	(1,558		)	(6,582		)	(25,602		)	21,835
Interest expense, net	(12,652		)	(11,584		)	(38,263		)	(31,119		)
Income (loss) before income taxes	$	2,417		$	(60,109	)	$	72,084		$	(45,330	)

___________________

(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 for certain 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."

(3) Includes the impact of the gain on the sale of Albumprinter, as well as a bargain purchase gain as defined by ASC 805-30 for an acquisition in which the identifiable assets acquired and liabilities assumed are greater than the consideration transferred, that was recognized in general and administrative expense in our consolidated statement of operations during the nine months ended March 31, 2018.

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	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
Depreciation and amortization:
Vistaprint	$	16,460	$	16,885	$	48,943	$	47,784
Upload and Print	15,701		14,151		45,426		42,182
National Pen	5,372		5,277		15,742		5,277
All Other Businesses	2,538		3,698		6,981		11,033
Central and corporate costs	3,366		3,391		10,028		9,508
Total depreciation and amortization	$	43,437	$	43,402	$	127,120	$	115,784

	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
Purchases of property, plant and equipment:
Vistaprint	$	4,843	$	12,046	$	29,342	$	31,590
Upload and Print	2,279		2,894		11,270		10,878
National Pen	1,183		1,013		4,891		1,013
All Other Businesses	252		4,134		1,231		10,647
Central and corporate costs	210		569		707		2,788
Total purchases of property, plant and equipment	$	8,767	$	20,656	$	47,441	$	56,916

	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
Capitalization of software and website development costs:
Vistaprint	$	7,186	$	6,429	$	18,266	$	15,091
Upload and Print	1,149		514		2,939		1,627
National Pen	302		—		669		—
All Other Businesses	443		1,063		1,811		2,968
Central and corporate costs	2,282		1,562		5,791		8,992
Total capitalization of software and website development costs	$	11,362	$	9,568	$	29,476	$	28,678

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

	March 31, 2018		June 30, 2017
Long-lived assets (1):
Netherlands	$	106,816	$	83,223
Canada	83,878		85,926
Switzerland	52,811		49,017
Italy	45,121		44,423
United States	41,241		64,034
Australia	23,288		22,961
France	22,030		22,794
Jamaica	21,548		21,492
Japan	20,913		20,686
Other	71,786		64,377
Total	$	489,432	$	478,933

___________________

(1) Excludes goodwill of $542,369 and $514,963, intangible assets, net of $250,593 and $275,924, the Waltham lease asset of $112,956 and $116,045, and deferred tax assets of $66,753 and $48,004 as of March 31, 2018 and June 30, 2017, respectively.

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13. Commitments and Contingencies

Lease Commitments

We have commitments under operating leases for our facilities that expire on various dates through 2026, including the Waltham lease arrangement discussed in Note 2. Total lease expense, net of sublease income, for the three and nine months ended March 31, 2018 was $4,340 and $10,527, respectively and $2,860 and $9,152 for the three and nine months ended March 31, 2017, respectively.

We lease certain machinery and plant equipment under both capital and operating lease agreements that expire at various dates through 2027. The aggregate carrying value of the leased buildings and equipment under capital leases included in property, plant and equipment, net in our consolidated balance sheet at March 31, 2018, is $35,253, net of accumulated depreciation of$36,022; the present value of lease installments not yet due included in other current liabilities and other liabilities in our consolidated balance sheet at March 31, 2018 amounts to $31,979.

Purchase Obligations

At March 31, 2018, we had unrecorded commitments under contract of $55,245 including commitments for third-party web services of $21,000. In addition, we had purchase commitments for production and computer equipment purchases of approximately $7,571, inventory purchase commitments of $1,984, commitments for advertising campaigns of $2,698, professional and consulting fees of $2,680, and other unrecorded purchase commitments of $19,312.

Other Obligations

We have an outstanding installment obligation of $2,806related to the fiscal 2012 intra-entity transfer of the intellectual property of our subsidiary Webs, Inc., which results in tax being paid over a 7.5 year term and has been classified as a deferred tax liability in our consolidated balance sheet as of March 31, 2018. In addition, we have deferred payments related to our other acquisitions of $3,864 in aggregate.

Legal Proceedings

We are not currently party to any material legal proceedings. Although we cannot predict with certainty the results of litigation and claims to which we may be subject from time to time, we do not expect the resolution of any of our current matters to have a material adverse impact on our consolidated results of operations, cash flows or financial position. In all cases, at each reporting period, we evaluate whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. We expense the costs relating to our legal proceedings as those costs are incurred.

14. Restructuring Charges

Restructuring costs include one-time employee termination benefits, acceleration of share-based compensation, and other related costs including third-party professional and outplacement services. During the three months ended March 31, 2018, we recognized restructuring charges of $2,331, which included $1,898 of expense related to additional rationalizations within the central and corporate group, which have resulted from changes in our organizational structure subsequent to our decentralization initiative. We also recognized $327 related to our second quarter Vistaprint reorganization and $106 related to our January 2017 restructuring initiative.

During the nine months ended March 31, 2018, we recognized restructuring charges of $14,686, which included $11,782 related to our Vistaprint reorganization for reductions in headcount and other operating costs. These changes simplified operations and more closely aligned functions to increase the speed of execution. We also recognized $1,898 of restructuring charges within the central and corporate group, as well as $819 of expense for the first quarter initiative within our All Other Businesses reportable segment. During the nine months ended March 31, 2018, we recognized changes in estimates of $187 from our January 2017 restructuring initiative.

During three and nine months ended March 31, 2017, we recognized $24,790 and $25,890 of restructuring charges, respectively, related to our January 2017 restructuring initiative, which has been completed.

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The following table summarizes the restructuring activity during the nine months ended March 31, 2018:

	Severance and Related Benefits			Other Restructuring Costs			Total
Accrued restructuring liability as of June 30, 2017 (1)	$	4,602		$	208		$	4,810
Restructuring Charges (2)	14,595			91			14,686
Cash payments	(14,890		)	(216		)	(15,106		)
Non-cash charges (3)	(1,317		)	—			(1,317		)
Accrued restructuring liability as of March 31, 2018	$	2,990		$	83		$	3,073

_____________________

(1) Accrued restructuring liability as of June 30, 2017 relates to our restructuring initiative announced in January 2017 and all remaining obligations have been paid as of March 31, 2018.

(2) We do not expect any material charges to be incurred in future periods related to each of these initiatives.

(3) Non-cash charges include acceleration of share-based compensation expenses.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Report contains forward-looking statements that involve risks and uncertainties. The statements contained in this Report that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including but not limited to our statements about anticipated income and revenue growth rates, future profitability and losses, planned investments in our business, expenses, seasonality of certain of our businesses, the impacts of changes in accounting standards, our anticipated effective tax rate, the impact of the U.S. Tax Cuts and Jobs Act, the sufficiency of our tax reserves, sufficiency of our cash, legal proceedings, the impact of our restructuring initiatives, expected operating losses at newer businesses, expected allocations of capital, our expansion into new geographies, and the impact of exchange rate and currency volatility. Without limiting the foregoing, the words “may,” “should,” “could,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “designed,” “potential,” “continue,” “target,” “seek” and similar expressions are intended to identify forward-looking statements. All forward-looking statements included in this Report are based on information available to us up to, and including the date of this document, and we disclaim any obligation to update any such forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain important factors, including those set forth in this “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” and elsewhere in this Report. You should carefully review those factors and also carefully review the risks outlined in other documents that we file from time to time with the United States Securities and Exchange Commission.

Executive Overview

We are a technology driven company that aggregates, largely via the internet, large volumes of small, individually customized orders for a broad spectrum of print, signage, apparel and similar products. We operate in a largely decentralized manner. Our businesses, discussed in more detail below, fulfill orders with manufacturing capabilities that include Cimpress owned and operated manufacturing facilities and a network of third-party fulfillers to create customized products on demand. Those businesses bring their products to market through a portfolio of customer-focused brands serving the needs of micro, small and medium sized businesses, resellers and consumers. These brands include Vistaprint, our global brand for micro business marketing products and services, as well as brands that we have acquired that serve the needs of various market segments, including resellers, micro, small and medium sized businesses with differentiated service needs, and consumers purchasing products for themselves and their families.

As of March 31, 2018, we have numerous operating segments under our management reporting structure which are reported in the following four reportable segments: Vistaprint, Upload and Print, National Pen, and All Other Businesses. Vistaprint represents our Vistaprint websites focused on the North America, Europe, Australia and New Zealand markets, and our Webs business, which is managed with the Vistaprint digital business. Upload and Print includes the druck.at, Easyflyer, Exagroup, Pixartprinting, Printdeal, Tradeprint, and WIRmachenDRUCK businesses. National Pen includes the global operations of our National Pen business, which manufactures and markets custom writing instruments and promotional products, apparel and gifts for small- and medium-sized businesses. All Other Businesses segment includes the operations of our Most of World and Corporate Solutions businesses, and the Albumprinter business, through its divestiture on August 31, 2017.

During the first quarter of fiscal 2018, we began presenting inter-segment fulfillment activity as revenue for the fulfilling business unit for purposes of measuring and reporting our segment financial performance. We have revised historical results to reflect the consistent application of our current accounting methodology. In addition, we adjusted our historical segment profitability for the allocation of certain IT costs that are allocated to each of our businesses in fiscal 2018, to better reflect where those resources are consumed. Refer to Note 12 of the accompanying consolidated financial statements for additional details of these changes.

Financial Summary

In evaluating the financial condition and operating performance of our business, management focuses on revenue growth, constant-currency revenue growth, operating income, adjusted net operating profit, cash flow from operations and free cash flow. A summary of these key financial metrics for the three and nine months ended March 31, 2018 as compared to the three and nine months ended March 31, 2017 follows:

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Third Quarter 2018

• Reported revenue increased by 16% to $636.1 million.

• Consolidated constant-currency revenue (a non-GAAP financial measure) increased by 8% and, excluding acquisitions and divestitures completed in the last four quarters, increased by 11%.

• Operating income increased $58.6 million to $16.6 million.

• Adjusted net operating profit (a non-GAAP financial measure which we refer to as adjusted NOP) increased $11.5 million to $25.3 million.

Year to Date 2018

• Reported revenue increased by 25% to $1,961.4 million.

• Consolidated constant-currency revenue increased by 20% and, excluding acquisitions and divestitures completed in the last four quarters, increased by 11%.

• Operating income increased $172.0 million to $135.9 million.

• Adjusted NOP increased $55.6 million to $129.4 million.

• Cash provided by operating activities increased $21.0 million to $144.6 million.

• Free cash flow (a non-GAAP financial measure) increased $78.7 million to $116.6 million.

For the third quarter of fiscal 2018, the increase in reported revenue was primarily due to continued growth in our various businesses, as well as positive impacts from currency exchange rate fluctuations. This was partially offset by the loss of Albumprinter revenue as we divested this business as of August 31, 2017. The increase in operating income for the third quarter of fiscal 2018 was primarily due to a reduction in restructuring charges of $22.5 million, as well as the associated operating cost savings of approximately $17.0 million from these activities. In the current period there were no impairment or earn-out related charges, however, we recognized $9.6 million of impairment charges and $4.9 million of earn-out related charges during the three months ended March 31, 2017. In addition, incremental profits from revenue growth and currency benefits contributed to our increased operating income. These increases were partially offset by incremental share-based compensation of $5.6 million for certain equity awards granted in the first quarter of fiscal 2018.

Adjusted NOP increased significantly year over year primarily due to the same reasons as operating income mentioned above, although Adjusted NOP excludes the impact of restructuring charges and acquisition-related charges, and includes realized gains or losses on our currency hedges. The net year-over-year impact of currency on Adjusted NOP was negative for the three months ended March 31, 2018.

Consolidated Results of Operations

Consolidated Revenue

We generate revenue primarily from the sale and shipping of customized manufactured products, and by providing digital services, website design and hosting, and email marketing services, as well as a small percentage from order referral fees and other third-party offerings.

For the three and nine months ended March 31, 2018 and 2017, our reported revenue increased primarily due to continued growth in our Vistaprint business, as well as growth in our National Pen and Upload and Print businesses. Our Most of World and Corporate Solutions businesses continue to grow strongly, but each off small bases. Our reported revenue was negatively impacted by the divestiture of our Albumprinter business, which was completed during the first quarter of fiscal 2018. Currency fluctuations have positively impacted our reported revenue growth for both the three and nine months ended March 31, 2018, as compared to the prior comparative periods.

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Our total revenue by reportable segment is shown in the following table:

In thousands	Three Months Ended March 31,							Currency Impact:	Constant- Currency	Impact of Acquisitions/Divestitures:	Constant- Currency revenue growth
	2018			2017			% Change	(Favorable)/Unfavorable	Revenue Growth (1)	(Favorable)/Unfavorable	Excluding divestitures (2)
Vistaprint	$	357,606		$	322,804		11%	(4)%	7%	—%	7%
Upload and Print	183,768			142,476			29%	(17)%	12%	—%	12%
National Pen	81,545			58,828			39%	(9)%	30%	—%	30%
All Other Businesses (3)	18,865			28,027			(33)%	—%	(33)%	86%	53%
Inter-segment eliminations	(5,715		)	(1,550		)
Total revenue	$	636,069		$	550,585		16%	(8)%	8%	3%	11%

In thousands	Nine Months Ended March 31,							Currency Impact:	Constant- Currency	Impact of Acquisitions/Divestitures:	Constant- Currency revenue growth
	2018			2017			% Change	(Favorable)/Unfavorable	Revenue Growth (1)	(Favorable)/Unfavorable	Excluding acquisitions/divestitures (2)
Vistaprint	$	1,105,557		$	990,160		12%	(3)%	9%	—%	9%
Upload and Print	536,685			426,821			26%	(11)%	15%	—%	15%
National Pen	267,360			58,828			354%	(8)%	346%	(316)%	30%
All Other Businesses (3)	67,913			99,410			(32)%	(1)%	(33)%	71%	38%
Inter-segment eliminations	(16,108		)	(4,070		)
Total revenue	$	1,961,407		$	1,571,149		25%	(5)%	20%	(9)%	11%

_________________

(1) Constant-currency revenue growth, a non-GAAP financial measure, represents the change in total revenue, between current and prior year periods at constant-currency exchange rates by translating all non-U.S. dollar denominated revenue generated in the current period using the prior year period’s average exchange rate for each currency to the U.S. dollar. Our reportable segments-related growth is inclusive of inter-segment revenues, which are eliminated in our consolidated results.

(2) Constant-currency revenue growth excluding acquisitions/divestitures, a non-GAAP financial measure, excludes revenue results for businesses in the period in which there is no comparable year-over-year revenue. Revenue from our fiscal 2017 acquisitions is excluded from fiscal 2018 revenue growth for quarters with no comparable year-over-year revenue. For example, revenue from National Pen, which we acquired on December 30, 2016 in Q2 2017, is excluded from revenue growth in Q1 and Q2 of fiscal 2018 since there are no full quarter results in the comparable periods, but revenue is included in revenue growth for Q3 of fiscal 2018 . Our reportable segments-related growth is inclusive of inter-segment revenues, which are eliminated in our consolidated results.

(3) The All Other Businesses segment includes the revenue of the Albumprinter business until the sale completion date of August 31, 2017. Constant-currency revenue growth excluding acquisitions/divestitures, excludes the revenue results for Albumprinter through the divestiture date.

We have provided these non-GAAP financial measures because we believe they provide meaningful information regarding our results on a consistent and comparable basis for the periods presented. Management uses these non-GAAP financial measures, in addition to GAAP financial measures, to evaluate our operating results. These non-GAAP financial measures should be considered supplemental to and not a substitute for our reported financial results prepared in accordance with GAAP.

Consolidated Cost of Revenue

Cost of revenue includes materials used to manufacture our products, payroll and related expenses for production and design services personnel, depreciation of assets used in the production process and in support of digital marketing service offerings, shipping, handling and processing costs, third-party production costs, costs of free products and other related costs of products we sell. Cost of revenue as a percent of revenue increased during the three months ended March 31, 2018, compared to the prior year period, primarily due to the divestiture of our Albumprinter business which has a higher gross margin than our consolidated gross margin percentage, as well as the increased weight of our Upload and Print portfolio, which as a percentage of revenue has a higher cost of revenue than our Vistaprint and National Pen businesses.

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In thousands	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
Cost of revenue	$	319,209		$	268,482		$	963,249		$	757,898
% of revenue	50.2		%	48.8		%	49.1		%	48.2		%

For the three and nine months ended March 31, 2018 in our Vistaprint business, cost of revenue increased by $17.5 million and $58.0 million, respectively, primarily due to increased production volume, as well as negative impacts from changes in currency exchange rates. Cost of revenue for our Upload and Print businesses increased by$29.6 million and $80.5 million, respectively, primarily driven by revenue growth in our Exagroup, Pixartprinting, Printdeal and WIRmachenDRUCK businesses, as well as unfavorable currency impacts. For the three months ended March 31, 2018, our National Pen business recognized an $8.9 million increase in costs due to revenue growth across the business and for the nine months ended March 31, 2018, we recognized an additional $86.2 million of costs, primarily due to the timing of our National Pen acquisition and the inclusion of operating results for only part of the prior comparable period.

These increases were partially offset by a decrease in cost of revenue of $7.2 million and $22.2 million, respectively, resulting from the sale of our Albumprinter business, which was completed during the first quarter of fiscal 2018.

Consolidated Operating Expenses

The following table summarizes our comparative operating expenses for the periods:

In thousands	Three Months Ended March 31,								Nine Months Ended March 31,
	2018			2017			2018 vs. 2017		2018			2017			2018 vs. 2017
Technology and development expense	$	61,267		$	63,236		(3	)%	$	182,598		$	178,528		2	%
% of revenue	9.6		%	11.5		%			9.3		%	11.4		%
Marketing and selling expense	$	179,591		$	167,284		7	%	$	546,469		$	451,310		21	%
% of revenue	28.2		%	30.4		%			27.9		%	28.7		%
General and administrative expense	$	44,103		$	45,730		(4	)%	$	127,869		$	150,471		(15	)%
% of revenue	6.9		%	8.3		%			6.5		%	9.6		%
Amortization of acquired intangible assets	$	12,941		$	13,450		(4	)%	$	38,132		$	33,542		14	%
% of revenue	2.0		%	2.4		%			1.9		%	2.1		%
Restructuring expense	$	2,331		$	24,790		(91	)%	$	14,686		$	25,890		(43	)%
% of revenue	0.4		%	4.5		%			0.7		%	1.6		%
(Gain) on sale of subsidiaries	$	—		$	—		—	%	$	(47,545	)	$	—		(100	)%
% of revenue	—		%	—		%			(2.4		)%	—		%
Impairment of goodwill and acquired intangible assets	$	—		$	9,556		(100	)%	$	—		$	9,556		(100	)%
% of revenue	—		%	1.7		%			—		%	0.6		%

Technology and development expense

Technology and development expense consists primarily of payroll and related expenses for our employees engaged in software and manufacturing engineering, information technology operations and content development, as well as amortization of capitalized software and website development costs, including hosting of our websites, asset depreciation, patent amortization, legal settlements in connection with patent-related claims, and other technology infrastructure-related costs. Depreciation expense for information technology equipment that directly supports the delivery of our digital marketing services products is included in cost of revenue.

During the three months ended March 31, 2018, technology and development expenses decreased by $2.0 million as compared to the prior comparative period, primarily due to a $2.7 million decrease of costs resulting from the divestiture of our Albumprinter business which was completed during the first quarter of fiscal 2018. We also

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recognized a decrease in technology and development expenses from cost savings realized as a result of our recent restructuring initiatives. These decreases were partially offset by additional costs related to technology enhancements intended to enable rapid product introduction and improved connection points to the mass customization platform.

During the nine months ended March 31, 2018, technology and development expenses increased by $4.1 million as compared to the prior comparative period, primarily due to our fiscal 2017 acquisition of National Pen, which resulted in $6.5 million of additional expense in the current period, without costs in the entire prior comparable period. We also recognized additional costs related to technology enhancements intended to enable rapid product introduction and improved connection points to the mass customization platform, as well as increased depreciation expense related to past investments in infrastructure-related assets. These increases were partially offset by a decrease in costs of $6.7 million, resulting from the divestiture of our Albumprinter business which was completed during the first quarter of fiscal 2018.

Marketing and selling expense

Marketing and selling expense consists primarily of advertising and promotional costs; payroll and related expenses for our employees engaged in marketing, sales, customer support and public relations activities; direct-mail advertising costs; and third-party payment processing fees. Our Vistaprint and National Pen businesses have higher marketing and selling cost structures, as compared to our Upload and Print businesses.

Our marketing and selling expenses increased by $12.3 million and $95.2 million during the three and nine months ended March 31, 2018, respectively, as compared to the prior comparative periods. During the three months ended March 31, 2018, our National Pen business recognized a $10.1 million increase of costs, which were primarily related to a volume increase in direct-mail advertising campaigns, as well as an increase in global online advertising initiatives. For the nine months ended March 31, 2018, we also recognized an additional $70.1 million of costs due to the acquisition of National Pen that was not included in our results for the entire prior comparable period. For the three and nine months ended March 31, 2018, advertising expenses for the remaining businesses increased by $6.3 millionand $23.1 million, respectively, which was primarily a result of additional advertising spend in the Vistaprint business. These increases were partially offset by a decrease in costs of $4.4 million and $14.7 million, respectively, due to the sale of our Albumprinter business during the first quarter of fiscal 2018. In addition, internal marketing and customer service costs within the Vistaprint business decreased by $1.4 million and $1.5 million, respectively, primarily related to cost savings resulting from our recent restructuring initiatives.

General and administrative expense

General and administrative expense consists primarily of transaction costs, including third-party professional fees, insurance and payroll and related expenses of employees involved in executive management, finance, legal, strategy, human resources, and procurement.

During the three months ended March 31, 2018, general and administrative expenses decreased by $1.6 million, primarily due to the absence of acquisition-related charges of $4.6 million related to the WIRmachenDRUCK earn-out arrangement recognized in the third quarter of fiscal 2017. This decrease was partially offset by an increase in share-based compensation expense of $3.0 million for the three months ended March 31, 2018.

For the nine months ended March 31, 2018, general and administrative expenses decreased by $22.6 million, primarily due to a decrease in acquisition-related charges of $29.5 million in the fiscal 2017 comparable period, as well as cost savings from our recent restructuring actions. These savings were partially offset by an additional $13.2 million of expense from our fiscal 2017 acquisition of National Pen, which did not have a full period of expense in the prior year.    

Amortization of acquired intangible assets

Amortization of acquired intangible assets consists of amortization expense associated with separately identifiable intangible assets capitalized as part of our acquisitions, including customer relationships, trade names, developed technologies, print networks, and customer and referral networks.

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Amortization of acquired intangible assets decreased by $0.5 million during the three months ended March 31, 2018, as compared to the prior comparable period, due to the sale of our Albumprinter business during the first quarter of fiscal 2018.

Amortization of acquired intangible assets increased by $4.6 million during the nine months ended March 31, 2018, as compared to the prior comparable period, primarily due to amortization for our fiscal 2017 acquisition of National Pen.

Restructuring expense

Restructuring expense consists of costs directly incurred as a result of restructuring initiatives, including employee-related termination costs, third party professional fees, facility exit costs and write-off of abandoned assets.

During the three and nine months ended March 31, 2018, we recognized restructuring expense of $2.3 millionand$14.7 million, respectively, primarily for employee-related termination benefits. The restructuring expense during the current periods relates primarily to the reorganization of our Vistaprint business that we announced in November 2017, which resulted in a reduction in headcount and other operating costs. Refer to Note 14 in the accompanying consolidated financial statements for additional details regarding the reorganization.

The restructuring costs of $24.8 million and $25.9 million recognized in each of the three and nine months ended March 31, 2017, respectively, was primarily related to our January 2017 restructuring initiative that we completed during the prior year.

Gain on sale of subsidiaries

During the nine months ended March 31, 2018, we recognized a gain on the sale of our Albumprinter business of $47.5 million, net of transaction costs. The amount of our gain on the sale of Albumprinter was impacted by the partial allocation of goodwill to our Vistaprint business in past periods, as well as minimal carrying value of Albumprinter's acquired intangible assets at the time of the sale and currency impacts. Refer to Note 2 in the accompanying consolidated financial statements for additional details.

Impairment of goodwill and acquired intangible assets

During the third quarter of fiscal 2017, we determined the forecasted cash flows for the Tradeprint business were lower than the initial forecast upon acquisition due to lower operating margins and required investment. As a result we performed a quantitative goodwill analysis that resulted in an impairment loss of $9.6 million during the third quarter of fiscal 2017 related to the goodwill and intangible assets of the business.

Other Consolidated Results

Other (expense) income, net

Other (expense) income, net generally consists of gains and losses from currency exchange rate fluctuations on transactions or balances denominated in currencies other than the functional currency of our subsidiaries, as well as the realized and unrealized gains and losses on some of our derivative instruments. In evaluating our currency hedging program and ability to qualify for hedge accounting in light of our legal entity cash flows, we considered the benefits of hedge accounting relative to the additional economic cost of trade execution and administrative burden. Based on this analysis, we decided to execute certain currency derivative contracts that do not qualify for hedge accounting.

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

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In thousands	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
(Losses) gains on derivatives not designated as hedging instruments	$	(9,102	)	$	(817	)	$	(19,103	)	$	12,737
Currency-related gains (losses), net	7,519			(6,304		)	(7,133		)	5,719
Other gains	25			539			634			3,379
Total other (expense) income, net	$	(1,558	)	$	(6,582	)	$	(25,602	)	$	21,835

During the three and nine months ended March 31, 2018, we recognized net losses of $1.6 million and $25.6 million, respectively, as compared to net losses of $6.6 million and net gains of $21.8 million, respectively, during the prior comparable periods. The decrease in other (expense) income, net is primarily due to the currency exchange rate volatility impacting our derivatives that are not designated as hedging instruments. We expect volatility to continue in future periods as we do not currently apply hedge accounting for most of our derivative currency contracts. We also experienced currency-related losses due to currency exchange rate volatility on our non-functional currency intercompany relationships, which we may alter from time to time. The impact of certain cross-currency swap contracts designated as cash flow hedges is included in our currency-related (losses) gains, net, offsetting the impact of certain non-functional currency intercompany relationships.

In addition, during the three and nine months ended March 31, 2018, we recognized other gains, which related primarily to insurance recoveries. The gains in the prior comparable periods consisted primarily of gains related to the sale of marketable securities.

Interest expense, net

Interest expense, net primarily consists of interest paid on outstanding debt balances, amortization of debt issuance costs, interest related to capital lease obligations and realized gains (losses) on effective interest rate swap contracts and certain cross-currency swap contracts.

Interest expense, net was$12.7 million and $38.3 million for the three and nine months ended March 31, 2018, respectively, compared to $11.6 million and $31.1 million for the three and nine months ended March 31, 2017, respectively. We expect interest expense to be higher this year relative to historical trends as a result of increased capital lease obligations for machinery and equipment; and higher interest rates. Refer to Note 8 in the accompanying consolidated financial statements for additional details regarding our debt arrangements.

Income tax expense

In thousands	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
Income tax expense (benefit)	$	4,019		$	(17,431	)	$	19,657		$	(7,644	)
Effective tax rate	166.3		%	29.0		%	27.3		%	16.9		%

Income tax expense for the three and nine months ended March 31, 2018 was higher than the same prior year periods primarily due to pre-tax income for the three and nine months ended March 31, 2018 as compared to pre-tax losses in the comparable periods. Additionally, we recognized tax expense of $4.7 million related to U.S. tax reform recognized in the nine months ended March 31, 2018. We recognize excess tax benefits associated with the vesting or exercise of share based compensation awards as a discrete tax item. During the three and nine months ended March 31, 2018, we recognized excess tax benefits from share based compensation of $1.3 million and $2.8 million, respectively, as compared to $0.1 million and $4.7 million for the comparable prior periods. Excluding the effect of these discrete tax items, we are forecasting a more favorable consolidated annual effective tax rate for fiscal 2018 as compared to fiscal 2017 primarily due to higher forecasted full year pre-tax income as well as a more favorable geographical mix of consolidated earnings. In addition, our effective tax rate is negatively impacted by losses in certain jurisdictions where we are unable to recognize a full tax benefit in the current period.

On December 22, 2017, the Tax Cuts and Jobs Act ("The Act") was signed into law, resulting in significant changes to U.S. tax law for corporations. Our tax balances were adjusted during the quarter ended December 31, 2017 based upon our interpretation of The Act, although the final impact on our tax balances may change due to the issuance of additional guidance, changes in our interpretation of The Act, changes in assumptions made by

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Cimpress, and actions Cimpress may take as a result of The Act. There were no material changes to our tax balances for the three months ended March 31, 2018 as a result of The Act. We will continue to review and assess the potential impact of any new information on our financial statement positions.

We believe that our income tax reserves are adequately maintained by taking into consideration both the technical merits of our tax return positions and ongoing developments in our income tax audits. However, the final determination of our tax return positions, if audited, is uncertain, and there is a possibility that final resolution of these matters could have a material impact on our results of operations or cash flows. See Note 9 in our accompanying consolidated financial statements for additional discussion.

Reportable Segment Results

Our segment financial performance is measured based on segment profit (loss) which excludes certain non-operational items including acquisition-related expenses, certain impairments and restructuring charges.

Vistaprint

In thousands	Three Months Ended March 31,								Nine Months Ended March 31,
	2018			2017			2018 vs. 2017		2018			2017			2018 vs. 2017
Reported Revenue	$	357,606		$	322,804		11	%	$	1,105,557		$	990,160		12	%
Segment Profit	57,661			37,627			53	%	187,605			129,915			44	%
% of revenue	16		%	12		%			17		%	13		%

Segment Revenue

Vistaprint's reported revenue was positively affected by currency impacts during the three and nine months ended March 31, 2018 of 4% and 3%, respectively, resulting in constant-currency growth of 7% and 9%. The Vistaprint constant-currency growth was due to continued growth in repeat customer bookings, however new customer bookings decreased in the third quarter of fiscal 2018 due in part to reduced advertising spend in certain sales channels.

Segment Profitability

Vistaprint's segment profit increased for the three and nine months ended March 31, 2018 as compared to the prior periods, driven primarily by operating expense savings as a result of our recent restructuring initiatives and incremental gross profits driven by revenue growth. In the current periods, Vistaprint's segment profit was positively influenced by currency movements.

Upload and Print

In thousands	Three Months Ended March 31,								Nine Months Ended March 31,
	2018			2017			2018 vs. 2017		2018			2017			2018 vs. 2017
Reported Revenue	$	183,768		$	142,476		29	%	$	536,685		$	426,821		26	%
Segment Profit	17,367			12,983			34	%	54,605			43,232			26	%
% of revenue	9		%	9		%			10		%	10		%

Segment Revenue

Upload and Print's reported revenue was positively affected by currency impacts during the three and nine months ended March 31, 2018 of 17% and 11%, respectively, resulting in constant-currency growth of 12% and 15%. The Upload and Print constant-currency revenue growth was primarily driven by continued growth from our Exagroup, Pixartprinting, Printdeal and WIRmachenDRUCK businesses. Each of our other Upload and Print businesses continue to grow at varying rates.

Segment Profitability

The increase in segment profit for the three and nine months ended March 31, 2018 as compared to the prior periods was primarily due to incremental gross profits, driven by the revenue growth described above, and

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operating expense efficiencies in several businesses. Upload and Print segment profit was also positively impacted by currency movements. The gross profit increases were partially offset by planned investments, relating primarily to technology enhancements intended to enable rapid new product introduction and improved connection points to the mass customization platform.

National Pen

In thousands	Three Months Ended March 31,							Nine Months Ended March 31,
	2018			2017			2018 vs. 2017	2018			2017			2018 vs. 2017
Reported Revenue	$	81,545		$	58,828		39%	$	267,360		$	58,828		354%
Segment Profit (Loss)	355			(3,226		)	111%	19,185			(3,226		)	695%
% of revenue	—		%	n/a				7		%	n/a

Segment Revenue

National Pen's reported revenue was positively affected by currency impacts during the three months ended March 31, 2018 of 9%, resulting in constant-currency revenue growth of 30%. The National Pen constant-currency revenue growth is primarily driven by increases across channels and geographies, as we have seen improved marketing performance, increased marketing and prospecting activities, and increased sales to other Cimpress businesses. We expect revenue growth to be lower in future periods, due in part to reduced marketing investments in the prior comparative period that lowered revenues in that period and, therefore, have a positive impact on the current period growth.

For the nine months ended March 31, 2017, our reported revenue growth was 354%, as the comparable period only includes revenue subsequent to our December 30, 2016 acquisition date.

Segment Profitability

Segment profit increased $3.6 million for the three months ended March 31, 2018, driven by the revenue growth described above, as well as cost savings from post-acquisition synergies. These increases were partially offset by increased customer prospecting activities, as well as planned technology investments. Segment profit increased $22.4 million for the nine months ended March 31, 2018, due to the prior comparable period including only a partial period of results, as well as revenue growth during the third quarter of fiscal 2018.

All Other Businesses

In thousands	Three Months Ended March 31,								Nine Months Ended March 31,
	2018			2017			2018 vs. 2017		2018			2017			2018 vs. 2017
Reported Revenue	$	18,865		$	28,027		(33	)%	$	67,913		$	99,410		(32	)%
Segment Loss	(9,342		)	(10,085		)	7	%	(25,459		)	(21,944		)	(16	)%
% of revenue	(50		)%	(36		)%			(37		)%	(22		)%

Segment Revenue

The All Other Businesses segment revenue decline was caused by the divestiture of our Albumprinter business, which we completed on August 31, 2017. Our constant-currency growth, excluding the impacts of our Albumprinter business, was 53% and 38%, respectively, for the three and nine months ended March 31, 2018, as compared to the prior periods, driven by continued growth in our Most of World businesses, as well as growth in our Corporate Solutions business.

Segment Profitability

The segment loss decreased for the three months ended March 31, 2018, as compared to the prior period, primarily due to volume absorption and advertising spend efficiencies in our Most of World businesses, partially offset by the divestiture of our Albumprinter business whose contribution to segment loss in the prior period was profit of $0.5 million.

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The increase in segment loss for the nine months ended March 31, 2018, as compared to the prior periods, is primarily due to our first quarter fiscal 2018 divestiture of our Albumprinter business whose contribution to segment loss in the prior period was $3.4 million more than in the current period, as well as additional investments in our Corporate Solutions business.

Corporate Solutions remains early in building foundations for new growth opportunities. Our multiple Most of World businesses also continue to grow strongly, but each off small bases. Our objective for each of these young businesses remains the same: to build foundations in large and potentially long-term attractive markets. In all of these businesses we continue to operate at a significant operating loss as previously described and as planned, and we expect to continue to do so in the next several years.

Liquidity and Capital Resources

Consolidated Statements of Cash Flows Data:

In thousands	Nine Months Ended March 31,
	2018			2017
Net cash provided by operating activities	$	144,633		$	123,644
Net cash provided by (used in) investing activities	13,979			(277,506		)
Net cash (used in) provided by financing activities	(152,164		)	123,116

At March 31, 2018, we had $49.9 million of cash and cash equivalents and $820.2 million of outstanding debt, excluding debt issuance costs and debt discounts. We expect cash and cash equivalents and outstanding debt levels to fluctuate over time depending on our working capital needs, as well as our organic investment, share repurchase and acquisition activity. The cash flows during the nine months ended March 31, 2018 related primarily to the following items:

Cash inflows:

• Net income of $52.4 million

• Adjustments for non-cash items of $122.1 million primarily related to positive adjustments for depreciation and amortization of $127.1 million, share-based compensation costs of $33.7 million, unrealized currency-related losses of $14.5 million, and the change of our contingent earn-out liability of $1.8 million partially offset by negative adjustments for our gain on the sale of our Albumprinter business of $47.5 million and non-cash tax related items of $9.6 million

• Proceeds from the sale of our Albumprinter business of $93.8 million, net of transaction costs

• Proceeds from the sale of a noncontrolling interest related to our WIRmachenDRUCK business of $35.4 million

• Proceeds from the issuance of ordinary shares from the exercise of share options of $11.5 million

• Excluding the impact of the earn-out payments described in the cash outflows section below, the changes in operating assets and liabilities were a source of cash during the period.

Cash outflows:

• Purchases of our ordinary shares of $94.7 million

• Payments of debt and debt issuance costs of $68.9 million, net of proceeds

• Payments of acquisition-related earn-outs of $51.3 million, primarily for our WIRmachenDRUCK acquisition. The portion of the earn-out payment contingent upon employment, as well as the contingent consideration payment in excess of acquisition date fair value, is $49.2 million and presented within operating activities. The remaining $2.1 million cash outflow representing the purchase consideration included in the acquisition date fair value is a financing activity.

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• Capital expenditures of $47.4 million of which the majority of these assets were related to the purchase of manufacturing and automation equipment for our production facilities, and computer and office equipment

• Internal costs for software and website development that we have capitalized of $29.5 million

• Issuance of loans of $16.5 millionto two equity holders of our Printi business (refer to Note 11 for additional details)

• Payments for capital lease arrangements of $13.8 million

• Payments of withholding taxes in connection with share awards of $3.1 million

Additional Liquidity and Capital Resources Information. During the three and nine months ended March 31, 2018, we financed our operations and strategic investments through internally generated cash flows from operations and debt financing. As of March 31, 2018, a significant portion of our cash and cash equivalents were held by our subsidiaries, and undistributed earnings of our subsidiaries that are considered to be indefinitely reinvested were $28.2 million. We do not intend to repatriate these funds as the cash and cash equivalent balances are generally used and available, without legal restrictions, to fund ordinary business operations and investments of the respective subsidiaries. If there is a change in the future, the repatriation of undistributed earnings from certain subsidiaries, in the form of dividends or otherwise, could have tax consequences that could result in material cash outflows.

Debt. On July 13, 2017, we executed an amendment to our senior secured credit facility that, among other things, expanded the total capacity to $1,045.0 million, which includes $745.0 million of revolving loans and $300.0 million of term loans. We expect to use our expanded credit facility to fund investments intended to support our long-term growth strategy. Refer to Note 8 in the accompanying consolidated financial statements for additional details.

As of March 31, 2018, we had aggregate loan commitments from our senior secured credit facility totaling $1,033.8 million. The loan commitments consisted of revolving loans of $745.0 million and term loans of $288.8 million. We have other financial obligations that constitute additional indebtedness based on the definitions within the credit facility. As of March 31, 2018, the amount available for borrowing under our senior secured credit facility was as follows:

In thousands	March 31, 2018
Maximum aggregate available for borrowing	$	1,033,750
Outstanding borrowings of senior secured credit facilities	(537,276		)
Remaining amount	496,474
Limitations to borrowing due to debt covenants and other obligations (1)	(57,868		)
Amount available for borrowing as of March 31, 2018 (2)	$	438,606

_________________

(1) The debt covenants of our senior secured credit facility limit our borrowing capacity each quarter, depending on our leverage and other indebtedness, such as notes, capital leases, letters of credit, and any other debt, as well as other factors that are outlined in the credit agreement.

(2) Share purchases, dividend payments, and corporate acquisitions are subject to more restrictive covenants, and therefore we may not be able to use the full amount available for borrowing for these purposes.

Debt Covenants. Our credit agreement contains financial and other covenants, including but not limited to the following:

(1) The credit agreement contains financial covenants calculated on a trailing twelve month, or TTM, basis that:

• our total leverage ratio, which is the ratio of our consolidated total indebtedness (*) to our TTM consolidated EBITDA (*), will not exceed 4.50 to 1.00, except that we may, on no more than three occasions during the term of the Credit Agreement, increase our leverage ratio to up to 4.75 for up to four consecutive fiscal quarters after a corporate acquisition that meets certain criteria.

• our senior secured leverage ratio, which is the ratio of our consolidated senior secured indebtedness (*) to our TTM consolidated EBITDA (*), will not exceed 3.25 to 1.00, except that we may, on no more than

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three occasions during the term of the Credit Agreement, increase our senior leverage ratio to up to 3.50 for up to four consecutive fiscal quarters after a corporate acquisition that meets certain criteria.

• our interest coverage ratio, which is the ratio of our consolidated EBITDA to our consolidated interest expense, will be at least 3.00 to 1.00.

(2) Purchases of our ordinary shares, payments of dividends, and corporate acquisitions and dispositions are subject to more restrictive consolidated leverage ratio thresholds than those listed above when calculated on a proforma basis in certain scenarios. Also, regardless of our leverage ratio, the credit agreement limits the amount of purchases of our ordinary shares, payments of dividends, corporate acquisitions and dispositions, investments in joint ventures or minority interests, and consolidated capital expenditures that we may make. These limitations can include annual limits that vary from year-to-year and aggregate limits over the term of the credit facility. Therefore, our ability to make desired investments may be limited during the term of our senior secured credit facility.

(3) The credit agreement also places limitations on additional indebtedness and liens that we may incur, as well as on certain intercompany activities.

(*) The Definitions of EBITDA, consolidated total indebtedness, and consolidated senior secured indebtedness are maintained in our credit agreement included as an exhibit to our Form 8–K filed on July 14, 2017.

The indenture under which our 7.0% senior unsecured notes due 2022 are issued contains various covenants, including covenants that, subject to certain exceptions, limit our and our restricted subsidiaries’ ability to incur and/or guarantee additional debt; pay dividends, repurchase shares or make certain other restricted payments; enter into agreements limiting dividends and certain other restricted payments; prepay, redeem or repurchase subordinated debt; grant liens on assets; enter into sale and leaseback transactions; merge, consolidate or transfer or dispose of substantially all of our consolidated assets; sell, transfer or otherwise dispose of property and assets; and engage in transactions with affiliates.

Our credit agreement and senior unsecured notes indenture also contain customary representations, warranties and events of default. As of March 31, 2018, we were in compliance with all financial and other covenants under the credit agreement and senior unsecured notes indenture.

Other debt. Other debt primarily consists of term loans acquired through our various acquisitions. As of March 31, 2018 we had$7.9 million outstanding for other debt payable through September 2024.

Our expectations for fiscal year 2018. We believe that our available cash, cash flows generated from operations, and cash available under our committed debt financing will be sufficient to satisfy our liabilities and planned investments to support our long-term growth strategy for at least the next twelve months. We endeavor to invest large amounts of capital that we believe will generate returns that are above our weighted average cost of capital. We consider any use of cash that we expect to require more than twelve months to return our invested capital to be an allocation of capital. For fiscal 2018 we expect to allocate capital to the following broad categories and consider our capital to be fungible across all of these categories:

• Organic investments will continue to be made across a wide spectrum of activities. These range from large, discrete projects that we believe can provide us with materially important competitive capabilities and/or market positions over the longer term to smaller investments intended to maintain or improve our competitive position and support value-creating revenue growth.

• Purchases of our ordinary shares

• Corporate acquisitions and similar investments

• Reduction of debt

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Contractual Obligations

Contractual obligations at March 31, 2018 are as follows:

In thousands	Payments Due by Period
	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Operating leases, net of subleases	$	58,037	$	17,063	$	24,939	$	8,592	$	7,443
Build-to-suit lease	99,298		12,569		25,139		23,803		37,787
Purchase commitments	55,245		35,486		19,759		—		—
Senior unsecured notes and interest payments	361,625		19,250		38,500		303,875		—
Other debt and interest payments	632,047		49,487		106,846		473,137		2,577
Capital leases	32,111		11,770		14,264		3,504		2,573
Other	6,670		2,998		3,209		463		—
Total (1)	$	1,245,033	$	148,623	$	232,656	$	813,374	$	50,380

___________________

(1) We may be required to make cash outlays related to our uncertain tax positions. However, due to the uncertainty of the timing of future cash flows associated with our uncertain tax positions, we are unable to make reasonably reliable estimates of the period of cash settlement, if any, with the respective taxing authorities. Accordingly, uncertain tax positions of $4.9 millionas of March 31, 2018 have been excluded from the contractual obligations table above. For further information on uncertain tax positions, see Note 9 to the accompanying consolidated financial statements.

Operating Leases. We rent office space under operating leases expiring on various dates through 2026. Future minimum rental payments required under our leases are an aggregate of approximately$58.0 million. The terms of certain lease agreements require security deposits in the form of bank guarantees and letters of credit in the amount of $3.0 million.

Build-to-suit lease. Represents the cash payments for our leased facility in Waltham, Massachusetts, USA. Please refer to Note 2 in the accompanying consolidated financial statements for additional details.

Purchase Commitments. At March 31, 2018, we had unrecorded commitments under contract of $55.2 million. Purchase commitments consisted of third-party web services of $21.0 million, production and computer equipment purchases of approximately $7.6 million, inventory purchase commitments of $2.0 million, commitments for advertising campaigns of $2.7 million, commitments for professional and consulting fees of $2.7 million, and other unrecorded purchase commitments of $19.3 million.

Senior unsecured notes and interest payments. Our 7.0% senior unsecured notes due 2022 bear interest at a rate of 7.0% per annum and mature on April 1, 2022. Interest on the notes is payable semi-annually on April 1 and October 1 of each year and has been included in the table above.

Other debt and interest payments. At March 31, 2018, the term loans of $288.8 million outstanding under our credit agreement have repayments due on various dates through July 13, 2022, with the revolving loans outstanding of $248.5 million due on July 13, 2022. Interest payable included in this table is based on the interest rate as of March 31, 2018 and assumes all revolving loan amounts outstanding will not be paid until maturity, but that the term loan amortization payments will be made according to our defined schedule. Interest payable includes the estimated impact of our interest rate swap agreements. 

In addition, we have other debt which consists primarily of debt assumed as part of certain of our fiscal 2015 acquisitions, and as of March 31, 2018 we had$7.9 million outstanding for those obligations that have repayments due on various dates through September 2024.

Capital leases. We lease certain machinery and plant equipment under capital lease agreements that expire at various dates through 2022. The aggregate carrying value of the leased equipment under capital leases included in property, plant and equipment, net in our consolidated balance sheet at March 31, 2018, is $35.3 million, net of accumulated depreciation of $36.0 million. The present value of lease installments not yet due included in other current liabilities and other liabilities in our consolidated balance sheet at March 31, 2018 amounts to $32.0 million.

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Other Obligations. Other obligations include the following:

• Deferred payments related to previous acquisitions of $3.9 million in the aggregate.

• Installment obligation of $2.8 million related to the fiscal 2012 intra-entity transfer of the intellectual property of our subsidiary Webs, Inc., which resulted in tax being paid over a 7.5 year term and has been classified as a deferred tax liability in our consolidated balance sheet as of March 31, 2018.

Additional Non-GAAP Financial Measures

Adjusted net operating profit (NOP) and free cash flow presented below are supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. During the first quarter of fiscal 2018, we removed the cash tax attributable to the current period portion of our consolidated NOP measure as management no longer uses this metric. Adjusted NOP is defined as GAAP operating income excluding certain items such as acquisition-related amortization and depreciation, expense recognized for earn-out related charges, including the change 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. The interest expense associated with our Waltham lease, as well as realized gains (losses) on currency forward contracts that do not qualify for hedge accounting, are included in Adjusted NOP.

Adjusted NOP is the primary metric by which we measure our consolidated financial performance and is provided to enhance investors' understanding of our current operating results from the underlying and ongoing business for the same reasons it is used by management. For example, as we have become more acquisitive over recent years we believe excluding the costs related to the purchase of a business (such as amortization of acquired intangible assets, contingent consideration, or impairment of goodwill) provides further insight into the performance of the underlying acquired business in addition to that provided by our GAAP operating income. As another example, as we do not apply hedge accounting for our currency forward contracts, we believe inclusion of realized gains and losses on these contracts that are intended to be matched against operational currency fluctuations provides further insight into our operating performance in addition to that provided by our GAAP operating income. We do not, nor do we suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

Beginning in the first quarter of fiscal 2018, we included free cash flow as a non-GAAP financial measure, which management uses to assess the cash flow generation of the company. Free cash flow is defined as net cash provided by operating activities less purchases of property, plant and equipment, purchases of intangible assets not related to acquisitions, and capitalization of software and website development costs, plus payment of contingent consideration in excess of acquisition-date fair value and gains on proceeds from insurance, if any.

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The table below sets forth operating income and Adjusted net operating profit for each of the three and nine months ended March 31, 2018 and 2017:

In thousands	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
GAAP operating income	$	16,627		$	(41,943	)	$	135,949		$	(36,046	)
Exclude expense (benefit) impact of:
Acquisition-related amortization and depreciation	13,030			13,508			38,330			33,740
Earn-out related charges (1)	—			4,882			2,391			28,139
Share-based compensation related to investment consideration	—			375			1,047			5,079
Certain impairments (2)	—			9,556			—			9,556
Restructuring related charges	2,331			24,790			14,686			25,890
Less: Interest expense associated with Waltham, MA lease	(1,838		)	(1,897		)	(5,645		)	(5,823		)
Less: Gains on the purchase or sale of subsidiaries (3)	—			—			(48,380		)	—
Include: Realized (losses) gains on certain currency derivatives not included in operating income	(4,811		)	4,591			(8,958		)	13,318
Adjusted net operating profit	$	25,339		$	13,862		$	129,420		$	73,853

_________________

(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 certain impairments of goodwill and other long-lived assets as defined by ASC 350 - "Intangibles - Goodwill and Other".

(3) Includes the impact of the gain on the sale of Albumprinter, as well as a bargain purchase gain as defined by ASC 805-30 for an acquisition in which the identifiable assets acquired and liabilities assumed are greater than the consideration transferred, that was recognized in general and administrative expense in our consolidated statement of operations during the nine months ended March 31, 2018.

The table below sets forth net cash provided by operating activities and free cash flow for each of the nine months ended March 31, 2018 and 2017:

In thousands	Nine Months Ended March 31,
	2018			2017
Net cash provided by operating activities	$	144,633		$	123,644
Purchases of property, plant and equipment	(47,441		)	(56,916		)
Purchases of intangible assets not related to acquisitions	(308		)	(110		)
Capitalization of software and website development costs	(29,476		)	(28,678		)
Payment of contingent consideration in excess of acquisition-date fair value (1)	49,241			—
Free cash flow	$	116,649		$	37,940

_________________

(1) Includes a portion of the earn-out payment that is presented within net cash provided by operating activities as part of the change in accrued expenses and other liabilities. This portion of the earn-out was deemed to be a compensation arrangement since it included an employment-related contingency.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk. Our exposure to interest rate risk relates primarily to our cash, cash equivalents and debt.

As of March 31, 2018, our cash and cash equivalents consisted of standard depository accounts which are held for working capital purposes. We do not believe we have a material exposure to interest rate fluctuations related to our cash and cash equivalents.

As of March 31, 2018, we had$537.3 million of variable rate debt and $2.8 million of variable rate installment obligation related to the fiscal 2012 intra-entity transfer of Webs' intellectual property. As a result, we have exposure to market risk for changes in interest rates related to these obligations. In order to mitigate our exposure to interest rate changes related to our variable rate debt, we execute interest rate swap contracts to fix the interest rate on a portion of our outstanding or forecasted long-term debt with varying maturities. As of March 31, 2018, a hypothetical 100 basis point increase in rates, inclusive of our outstanding interest rate swaps, would result in an increase to interest expense of approximately $4.0 million over the next 12 months.

Currency Exchange Rate Risk. We conduct business in multiple currencies through our worldwide operations but report our financial results in U.S. dollars. We manage these risks through normal operating activities and, when deemed appropriate, through the use of derivative financial instruments. We have policies governing the use of derivative instruments and do not enter into financial instruments for trading or speculative purposes. The use of derivatives is intended to reduce, but does not entirely eliminate, the impact of adverse currency exchange rate movements. A summary of our currency risk is as follows:

• Translation of our non-U.S. dollar revenues and expenses: Revenue and related expenses generated in currencies other than the U.S. dollar could result in higher or lower net income when, upon consolidation, those transactions are translated to U.S. dollars. When the value or timing of revenue and expenses in a given currency are materially different, we may be exposed to significant impacts on our net income and non-GAAP financial metrics, such as adjusted EBITDA.

Our currency hedging objectives are targeted at reducing volatility in our forecasted U.S. dollar-equivalent adjusted EBITDA in order to protect our debt covenants. Since adjusted EBITDA excludes non-cash items such as depreciation and amortization that are included in net income, we may experience increased, not decreased, volatility in our GAAP results due to our hedging approach. Our most significant net currency exposures by volume are in the Euro and British Pound.

In addition, we elect to execute currency derivatives contracts that do not qualify for hedge accounting. As a result, we may experience volatility in our consolidated statements of operations due to (i) the impact of unrealized gains and losses reported in other (expense) income, net on the mark-to-market of outstanding contracts and (ii) realized gains and losses recognized in other (expense) income, net, whereas the offsetting economic gains and losses are reported in the line item of the underlying cash flow, for example, revenue.

• Translation of our non-U.S. dollar assets and liabilities: Each of our subsidiaries translates its assets and liabilities to U.S. dollars at current rates of exchange in effect at the balance sheet date. The resulting gains and losses from translation are included as a component of accumulated other comprehensive loss on the consolidated balance sheet. Fluctuations in exchange rates can materially impact the carrying value of our assets and liabilities.

We have currency exposure arising from our net investments in foreign operations. We enter into currency derivatives to mitigate the impact of currency rate changes on certain net investments.

• Remeasurement of monetary assets and liabilities: Transaction gains and losses generated from remeasurement of monetary assets and liabilities denominated in currencies other than the functional currency of a subsidiary are included in other (expense) income, net on the consolidated statements of operations. Certain of our subsidiaries hold intercompany loans denominated in a currency other than their functional currency. Due to the significance of these balances, the revaluation of intercompany loans can have a material impact on other (expense) income, net. We expect these impacts may be volatile in the future, although our largest intercompany loans do not have a U.S. dollar cash impact for the consolidated

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group because they are either 1) U.S. dollar loans or 2) we elect to hedge certain non-U.S. dollar loans with cross currency swaps. A hypothetical 10% change in currency exchange rates was applied to total net monetary assets denominated in currencies other than the functional currencies at the balance sheet dates to compute the impact these changes would have had on our income before taxes in the near term. The balances are inclusive of the notional value of any cross currency swaps designated as cash flow hedges. A hypothetical decrease in exchange rates of 10% against the functional currency of our subsidiaries would have resulted in an increase of $52.2 million and $31.0 million on our income before income taxes for the three months ended March 31, 2018 and 2017, respectively.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2018. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, or the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of March 31, 2018, our chief executive officer and chief financial officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There were no significant changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the three months ended March 31, 2018 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1A. Risk Factors

Our future results may vary materially from those contained in forward-looking statements that we make in this Report and other filings with the SEC, press releases, communications with investors, and oral statements due to the following important factors, among others. Our forward-looking statements in this Report and in any other public statements we make may turn out to be wrong. These statements can be affected by, among other things, inaccurate assumptions we might make or by known or unknown risks and uncertainties or risks we currently deem immaterial. Consequently, no forward-looking statement can be guaranteed. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Risks Related to Our Business

If our long-term growth strategy is not successful, our business and financial results could be harmed.

We may not achieve our long-term objectives, and our investments in our business may fail to impact our results and growth as anticipated. Some of the factors that could cause our business strategy to fail to achieve our objectives include, among others:

• our failure to adequately execute our strategy or anticipate and overcome obstacles to achieving our strategic goals;

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• our failure to develop our mass customization platform or the failure of the platform to drive the efficiencies and competitive advantage we expect;

• our failure to manage the growth, complexity, and pace of change of our business and expand our operations;

• our failure to acquire, at a value-accretive price or at all, businesses that enhance the growth and development of our business or to effectively integrate the businesses we do acquire into our business;

• our inability to purchase or develop technologies and other key assets and capabilities to increase our efficiency, enhance our competitive advantage, and scale our operations;

• our failure to realize the anticipated benefits of the decentralization of our operations;

• the failure of our current supply chain to provide the resources we need at the standards we require and our inability to develop new or enhanced supply chains;

• our failure to acquire new customers and enter new markets, retain our current customers, and sell more products to current and new customers;

• our failure to address inefficiencies and performance issues in some of our businesses and markets;

• our failure to sustain growth in relatively mature markets;

• our failure to promote, strengthen, and protect our brands;

• our failure to effectively manage competition and overlap within our brand portfolio;

• the failure of our current and new marketing channels to attract customers;

• our failure to realize expected returns on our capital allocation decisions;

• unanticipated changes in our business, current and anticipated markets, industry, or competitive landscape;

• our failure to attract and retain skilled talent needed to execute our strategy and sustain our growth; and

• general economic conditions.

If our strategy is not successful, then our revenue, earnings, and value may not grow as anticipated or may decline, we may not be profitable, our cash flow may be negatively impacted, our reputation and brands may be damaged, and the price of our shares may decline. In addition, we may change our strategy from time to time, which can cause fluctuations in our financial results and volatility in our share price.

Purchasers of customized products may not choose to shop online, which would limit our acquisition of new customers that are necessary to the success of our business.

We sell most of our products and services through the Internet. Because the online market for most of our products and services is not mature, our success depends in part on our ability to attract customers who have historically purchased products and services we offer through offline channels. Specific factors that could prevent prospective customers from purchasing from us as an online retailer include:

• concerns about buying customized products without face-to-face interaction with design or sales personnel;

• the inability to physically handle and examine product samples before making a purchase;

• delivery time associated with Internet orders;

• concerns about the security of online transactions and the privacy of personal information;

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• delayed or lost shipments or shipments of incorrect or damaged products;

• limited access to the Internet; and

• the inconvenience associated with returning or exchanging purchased items.

In addition, our internal research shows that an increasing number of current and potential customers access our websites using smart phones or tablets and that our website visits using traditional computers may be declining. Designing and purchasing custom designed products on a smart phone, tablet, or other mobile device is more difficult than doing so with a traditional computer due to limited screen sizes and bandwidth constraints. If our customers and potential customers have difficulty accessing and using our websites and technologies, then our revenue could decline.

We may not succeed in promoting and strengthening our brands, which could prevent us from acquiring new customers and increasing revenues.

A primary component of our business strategy is to promote and strengthen our brands to attract new and repeat customers, and we face significant competition from other companies in our markets who also seek to establish strong brands. To promote and strengthen our brands, we must incur substantial marketing expenses and establish a relationship of trust with our customers by providing a high-quality customer experience, which requires us to invest substantial amounts of our resources. Our ability to provide a high-quality customer experience is also dependent on external factors over which we may have little or no control, such as the reliability and performance of our suppliers, third-party fulfillers, third-party carriers, and communication infrastructure providers. If we are unable to promote our brands or provide customers with a high-quality customer experience, we may fail to attract new customers, maintain customer relationships, and sustain or increase our revenues.

We manage our business for long-term results, and our quarterly and annual financial results often fluctuate, which may lead to volatility in our share price.

Our revenues and operating results often vary significantly from period to period due to a number of factors, and as a result comparing our financial results on a period-to-period basis may not be meaningful. We prioritize our two uppermost objectives (leadership in mass customization and maximizing intrinsic value per share) even at the expense of shorter-term results and generally do not manage our business to maximize current period financial results, including our GAAP net income and operating cash flow and other results we report. Many of the factors that lead to period-to-period fluctuations are outside of our control; however, some factors are inherent in our business strategies. Some of the specific factors that could cause our operating results to fluctuate from quarter to quarter or year to year include among others:

• investments in our business in the current period intended to generate longer-term returns, where the shorter-term costs will not be offset by revenue or cost savings until future periods, if at all;

• seasonality-driven or other variations in the demand for our products and services, in particular during our second fiscal quarter;

• currency and interest rate fluctuations, which affect our revenues, costs, and fair value of our assets and liabilities;

• our hedging activity;

• our ability to attract and retain customers and generate purchases;

• shifts in revenue mix toward less profitable products and brands;

• the commencement or termination of agreements with our strategic partners, suppliers, and others;

• our ability to manage our production, fulfillment, and support operations;

• costs to produce and deliver our products and provide our services, including the effects of inflation;

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• our pricing and marketing strategies and those of our competitors;

• expenses and charges related to our compensation arrangements with our executives and employees;

• costs and charges resulting from litigation;

• significant increases in credits, beyond our estimated allowances, for customers who are not satisfied with our products;

• changes in our income tax rate;

• costs to acquire businesses or integrate our acquired businesses;

• financing costs;

• impairments of our tangible and intangible assets including goodwill; and

• the results of our minority investments and joint ventures.

Some of our expenses, such as office leases, depreciation related to previously acquired property and equipment, and personnel costs, are relatively fixed, and we may be unable to, or may not choose to, adjust operating expenses to offset any revenue shortfall. Accordingly, any shortfall in revenue may cause significant variation in operating results in any period. Our operating results may sometimes be below the expectations of public market analysts and investors, in which case the price of our ordinary shares will likely decline.

We may not be successful in developing our mass customization platform or in realizing the anticipated benefits of the platform.

A key component of our strategy is the development of a mass customization platform. The process of developing new technology is complex, costly, and uncertain, and the development effort could be disruptive to our business and existing systems. We must make long-term investments, develop or obtain appropriate intellectual property, and commit significant resources before knowing whether our mass customization platform will be successful and make us more effective and competitive. As a result, there can be no assurance that we will successfully complete the development of the platform, that our diverse businesses will realize value from the platform, or that we will realize expected returns on the capital expended to develop the platform.

In addition, we are aware that other companies are developing platforms that could compete with ours. If a competitor were to develop and reach scale with a platform before we do, our competitive position could be harmed.

Our global operations, decentralized organizational structure, and expansion place a significant strain on our management, employees, facilities, and other resources and subject us to additional risks.

We are a global company with production facilities, offices, and localized websites in many countries across six continents, and we have decentralized our organizational structure and operations. We expect to establish operations, acquire or invest in businesses, and sell our products and services in additional geographic regions, including emerging markets, where we may have limited or no experience. We may not be successful in all regions and markets in which we invest or where we establish operations, which may be costly to us. We are subject to a number of risks and challenges that relate to our global operations, decentralization, and expansion, including, among others:

• difficulty managing operations in, and communications among, multiple businesses, locations, and time zones;

• difficulty complying with multiple tax laws, treaties, and regulations and limiting our exposure to onerous or unanticipated taxes, duties, and other costs;

• our failure to improve and adapt our financial and operational controls to manage our decentralized business and comply with our legal obligations;

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• the challenge of complying with disparate laws in multiple countries, such as local regulations that may impair our ability to conduct our business as planned, protectionist laws that favor local businesses, and restrictions imposed by local labor laws;

• our inexperience in marketing and selling our products and services within unfamiliar countries and cultures;

• challenges of working with local business partners;

• our failure to properly understand and develop graphic design content and product formats and attributes appropriate for local tastes;

• disruptions caused by political and social instability that may occur in some countries;

• corrupt business practices, such as bribery or the willful infringement of intellectual property rights, that may be common in some countries or in some sales channels and markets;

• difficulty repatriating cash from some countries;

• difficulty importing and exporting our products across country borders and difficulty complying with customs regulations in the many countries where we sell products;

• disruptions or cessation of important components of our international supply chain; and

• failure of local laws to provide a sufficient degree of protection against infringement of our intellectual property.

There is considerable uncertainty about the economic and regulatory effects of the United Kingdom's exit from the European Union (commonly referred to as "Brexit"). The UK is one of our largest markets in Europe, but we currently ship products to UK customers primarily from continental Europe. If Brexit results in greater restrictions on imports and exports between the UK and the EU or increased regulatory complexity, then our operations and financial results could be negatively impacted.

In addition, we are exposed to fluctuations in currency exchange rates that may impact items such as the translation of our revenues and expenses, remeasurement of our intercompany balances, and the value of our cash and cash equivalents and other assets and liabilities denominated in currencies other than the U.S. dollar, our reporting currency. The hedging activities we engage in may not mitigate the net impact of currency exchange rate fluctuations, and our financial results may differ materially from expectations as a result of such fluctuations.

Acquisitions and strategic investments may be disruptive to our business.

An important way in which we pursue our strategy is to selectively acquire businesses, technologies, and services and make minority investments in businesses and joint ventures. The time and expense associated with finding suitable businesses, technologies, or services to acquire or invest in can be disruptive to our ongoing business and divert our management's attention. In addition, we have needed in the past, and may need in the future, to seek financing for acquisitions and investments, which may not be available on terms that are favorable to us, or at all, and can cause dilution to our shareholders, cause us to incur additional debt, or subject us to covenants restricting the activities we may undertake.

Our acquisitions and strategic investments may fail to achieve our goals.

An acquisition, minority investment, or joint venture may fail to achieve our goals and expectations for a number of reasons including the following:

• The business we acquired or invested in may not perform as well as we expected.

• We may overpay for acquired businesses, which can, among other things, negatively affect our intrinsic value per share.

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• We may fail to integrate acquired businesses, technologies, services, or internal systems effectively, or the integration may be more expensive or take more time than we anticipated.

• The management of our minority investments and joint ventures may be more expensive or may take more resources than we expected.

• We may not realize the anticipated benefits of integrating acquired businesses into our mass customization platform.

• We may encounter unexpected cultural or language challenges in integrating an acquired business or managing our minority investment in a business.

• We may not be able to retain customers and key employees of the acquired businesses, and we and the businesses we acquire or invest in may not be able to cross sell products and services to each other's customers.

We generally assume the liabilities of businesses we acquire, which could include liability for an acquired business' violation of law that occurred before we acquired it. In addition, we have historically acquired smaller, privately held companies that may not have as strong a culture of legal compliance or as robust financial controls as a larger, publicly traded company like Cimpress, and if we fail to implement adequate training, controls, and monitoring of the acquired companies, we could also be liable for post-acquisition legal violations.

Our acquisitions and minority investments can negatively impact our financial results.

Acquisitions and minority investments can be costly, and some of our acquisitions and investments may be dilutive, leading to reduced earnings. Acquisitions and investments can result in increased expenses including impairments of goodwill and intangible assets if financial goals are not achieved, assumptions of contingent or unanticipated liabilities, amortization of acquired intangible assets, and increased tax costs.

In addition, the accounting for our acquisitions requires us to make significant estimates, judgments, and assumptions that can change from period to period, based in part on factors outside of our control, which can create volatility in our financial results. For example, we often pay a portion of the purchase price for our acquisitions in the form of an earn out based on performance targets for the acquired companies or enter into obligations to purchase non-controlling interests in our minority investments, which can be difficult to forecast. If in the future our assumptions change and we determine that higher levels of achievement are likely under our earn outs or future purchase obligations, we will need to pay and record additional amounts to reflect the increased purchase price. These additional amounts could be significant and could adversely impact our results of operations.

Furthermore, earn-out provisions can lead to disputes with the sellers about the achievement of the earn-out performance targets, earn-out performance targets can sometimes create inadvertent incentives for the acquired company's management to take short-term actions designed to maximize the earn out instead of benefiting the business, and strong performance of the underlying business could result in material payments pursuant to earn-out provisions or future purchase obligations that may or may not reflect the fair market value of the asset at that time.

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If we are unable to attract visitors to our websites and convert those visitors to customers, our business and results of operations could be harmed.

Our success depends on our ability to attract new and repeat customers in a cost-effective manner. We rely on a variety of methods to draw visitors to our websites and promote our products and services, such as purchased search results from online search engines such as Google and Yahoo!, email, direct mail, advertising banners and other online links, broadcast media, and word-of-mouth customer referrals. If the search engines on which we rely modify their algorithms, terminate their relationships with us, or increase the prices at which we may purchase listings, our costs could increase, and fewer customers may click through to our websites. If we are not effective at reaching new and repeat customers, if fewer customers click through to our websites, or if the costs of attracting customers using our current methods significantly increase, then traffic to our websites would be reduced, our revenue and net income could decline, and our business and results of operations would be harmed.

Seasonal fluctuations in our business place a strain on our operations and resources.

Our profitability has historically been highly seasonal. Our second fiscal quarter includes the majority of the holiday shopping season and accounts for a disproportionately high portion of our earnings for the year, primarily due to higher sales of home and family products such as holiday cards, calendars, photo books, and personalized gifts. In addition, the National Pen business we acquired in December 2016 has historically generated nearly all of its profits during the December quarter. Our operating income during the second fiscal quarter represented more than 60% of annual operating income in the years ended June 30, 2016 and 2015, and during the year ended June 30, 2017, in a period we recognized a loss from operations, the second quarter was the only profitable quarter of the year. In anticipation of increased sales activity during our second fiscal quarter holiday season, we typically incur significant additional capacity related expenses each year to meet our seasonal needs, including facility expansions, equipment purchases and leases, and increases in the number of temporary and permanent employees. Lower than expected sales during the second quarter would likely have a disproportionately large impact on our operating results and financial condition for the full fiscal year. In addition, if our manufacturing and other operations are unable to keep up with the high volume of orders during our second fiscal quarter or we experience inefficiencies in our production, then our costs may be significantly higher, and we and our customers can experience delays in order fulfillment and delivery and other disruptions. If we are unable to accurately forecast and respond to seasonality in our business, our business and results of operations may be materially harmed.

Our hedging activity could negatively impact our results of operations, cash flows, or leverage.

We have entered into derivatives to manage our exposure to interest rate and currency movements. If we do not accurately forecast our results of operations, execute contracts that do not effectively mitigate our economic exposure to interest rates and currency rates, elect to not apply hedge accounting, or fail to comply with the complex accounting requirements for hedging, our results of operations and cash flows could be volatile, as well as negatively impacted. Also, our hedging objectives may be targeted at improving our non-GAAP financial metrics, which could result in increased volatility in our GAAP results. Since some of our hedging activity addresses long-term exposures, such as our net investment in our subsidiaries, the gains or losses on those hedges could be recognized before the offsetting exposure materializes to offset them. This could result in our having to borrow to settle a loss on a derivative without an offsetting cash inflow, potentially causing volatility in our cash or debt balances and therefore our leverage.

We face risks related to interruption of our operations and lack of redundancy.

Our production facilities, websites, infrastructure, supply chain, customer service centers, and operations may be vulnerable to interruptions, and we do not have redundancies or alternatives in all cases to carry on these operations in the event of an interruption. In addition, because we are dependent in part on third parties for the implementation and maintenance of certain aspects of our communications and production systems, we may not be able to remedy interruptions to these systems in a timely manner or at all due to factors outside of our control. Some of the events that could cause interruptions in our operations or systems are, among others:

• fire, natural disasters, or extreme weather

• labor strike, work stoppage, or other issues with our workforce

• political instability or acts of terrorism or war

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• power loss or telecommunication failure

• attacks on our external websites or internal network by hackers or other malicious parties

• undetected errors or design faults in our technology, infrastructure, and processes that may cause our websites to fail

• inadequate capacity in our systems and infrastructure to cope with periods of high volume and demand

• human error, including poor managerial judgment or oversight

Any interruptions to our systems or operations could result in lost revenue, increased costs, negative publicity, damage to our reputation and brands, and an adverse effect on our business and results of operations. Building redundancies into our infrastructure, systems, and supply chain to mitigate these risks may require us to commit substantial financial, operational, and technical resources, in some cases before the volume of our business increases with no assurance that our revenues will increase.

We face intense competition, and we expect our competition to continue to increase.

The markets for our products and services are intensely competitive, highly fragmented, and geographically dispersed. The competitive landscape for e-commerce companies continues to change as new e-commerce businesses are introduced and traditional “bricks and mortar” businesses establish an online presence. Competition may result in price pressure, reduced profit margins, and loss of market share and brand recognition, any of which could substantially harm our business and financial results. Current and potential competitors include (in no particular order):

• traditional offline suppliers and graphic design providers

• online printing and graphic design companies

• office superstores, drug store chains, food retailers, and other major retailers targeting small business and consumer markets

• wholesale printers

• self-service desktop design and publishing using personal computer software

• email marketing services companies

• website design and hosting companies

• suppliers of customized apparel, promotional products, and gifts

• online photo product companies

• Internet retailers

• online providers of custom printing services that outsource production to third party printers

• providers of digital marketing such as social media and local search directories

Many of our current and potential competitors have advantages over us, including longer operating histories, greater brand recognition or loyalty, more focus on a given subset of our business, or significantly greater financial, marketing, and other resources. Many of our competitors currently work together, and additional competitors may do so in the future through strategic business agreements or acquisitions. In addition, we have in the past and may in the future choose to collaborate with some of our existing and potential competitors in strategic partnerships that we believe will improve our competitive position and financial results. It is possible, however, that

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such ventures will be unsuccessful and that our competitive position and financial results will be adversely affected as a result of such collaboration.

Failure to meet our customers' price expectations would adversely affect our business and results of operations.

Demand for our products and services is sensitive to price for almost all of our businesses, and changes in our pricing strategies, including shipping pricing, have had a significant impact on the numbers of customers and orders in some regions, which in turn affects our revenues, profitability, and results of operations. Many factors can significantly impact our pricing and marketing strategies, including the costs of running our business, our competitors' pricing and marketing strategies, and the effects of inflation. If we fail to meet our customers' price expectations, our business and results of operations may suffer.

Failure to protect our information systems and the confidential information of our customers, employees, and business partners against security breaches or thefts could damage our reputation and brands, subject us to litigation and enforcement actions, and substantially harm our business and results of operations.

Our business involves the receipt, storage, and transmission of customers' personal and payment information, as well as confidential information about our business, employees, suppliers, and business partners, some of which is entrusted to third-party service providers, partners, and vendors. Our information systems and those of third parties with which we share information are vulnerable to an increasing threat of cyber security risks, including physical and electronic break-ins, computer viruses, and phishing and other social engineering scams, among other risks. As security threats evolve and become more sophisticated and more difficult to detect and defend against, a hacker or thief may defeat our security measures, or those of our third-party service provider, partner, or vendor, and obtain confidential or personal information. We or the third party may not discover the security breach and theft of information for a significant period of time after the breach occurs. We may need to expend significant resources to protect against security breaches and thefts of data or to address problems caused by breaches or thefts, and we may not be able to anticipate cyber attacks or implement adequate preventative measures. Any compromise or breach of our information systems or the information systems of third parties with which we share information could, among other things:

• damage our reputation and brands;

• expose us to losses, remediation costs, litigation, enforcement actions, and possible liability;

• result in a failure to comply with legal and industry privacy regulations and standards;

• lead to the misuse of our and our customers' confidential or personal information;

• cause interruptions in our operations; and

• cause us to lose revenue if existing and potential customers believe that their personal and payment information may not be safe with us.

We are subject to the laws of many states, countries, and regions and industry guidelines and principles governing the collection, use, retention, disclosure, sharing, and security of data that we receive from and about our customers and employees. Any failure or perceived failure by us to comply with any of these laws, guidelines, or principles could result in actions against us by governmental entities or others, a loss of customer confidence, and damage to our brands, any of which could have an adverse effect on our business. In addition, the regulatory landscape is constantly changing, as various regulatory bodies throughout the world enact new laws concerning privacy, data retention, data transfer and data protection. For example, the recent General Data Protection Regulation in Europe includes operational and compliance requirements that are different than those currently in place and also includes significant penalties for non-compliance. Complying with these varying and changing requirements could cause us to incur substantial costs or require us to change our business practices in a manner adverse to our business and operating results.

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We rely heavily on email to market to and communicate with customers, and email communications are subject to regulatory and reputation risks.

Various private entities attempt to regulate the use of commercial email solicitation by blacklisting companies that the entities believe do not meet their standards, which results in those companies' emails being blocked from some Internet domains and addresses. From time to time some of our Internet protocol addresses appear on blacklists, which can interfere with our ability to market our products and services, communicate with our customers, and operate and manage our websites and corporate email accounts. Further, we have contractual relationships with partners that market our products and services on our behalf, and some of our marketing partners engage third-party email marketers with which we do not have any contractual or other relationship. If we or our partners were to fail to comply with all applicable laws relating to email solicitations, including if one of our partners or another third party were to send emails marketing our products and services in violation of applicable anti-spam or other laws, then our reputation could be harmed and we could potentially be liable for their actions.

We are subject to safety, health, and environmental laws and regulations, which could result in liabilities, cost increases, or restrictions on our operations.

We are subject to a variety of safety, health and environmental, or SHE, laws and regulations in each of the jurisdictions in which we operate. These laws and regulations govern, among other things, air emissions, wastewater discharges, the storage, handling and disposal of hazardous and other regulated substances and wastes, soil and groundwater contamination and employee health and safety. We use regulated substances such as inks and solvents, and generate air emissions and other discharges at our manufacturing facilities, and some of our facilities are required to hold environmental permits. If we fail to comply with existing SHE requirements, or new, more stringent SHE requirements applicable to us are imposed, we may be subject to monetary fines, civil or criminal sanctions, third-party claims, or the limitation or suspension of our operations. In addition, if we are found to be responsible for hazardous substances at any location (including, for example, offsite waste disposal facilities or facilities at which we formerly operated), we may be responsible for the cost of cleaning up contamination, regardless of fault, as well as for claims for harm to health or property or for natural resource damages arising out of contamination or exposure to hazardous substances.

In some cases we pursue self-imposed socially responsible policies that are more stringent than is typically required by laws and regulations, for instance in the areas of worker safety, team member social benefits and environmental protection such as carbon reduction initiatives. The costs of this added SHE effort are often substantial and could grow over time.

The loss of key personnel or an inability to attract and retain additional personnel could affect our ability to successfully grow our business.

We are highly dependent upon the continued service and performance of our senior management and key technical, marketing, and production personnel, any of whom may cease their employment with us at any time with minimal advance notice. We face intense competition for qualified individuals from many other companies in diverse industries. The loss of one or more of our key employees may significantly delay or prevent the achievement of our business objectives, and our failure to attract and retain suitably qualified individuals or to adequately plan for succession could have an adverse effect on our ability to implement our business plan.

Our credit facility and the indenture that governs our senior notes restrict our current and future operations, particularly our ability to respond to changes or to take certain actions.

Our senior secured credit facility, which we refer to as our credit facility, and the indenture that governs our 7.0% senior unsecured notes due 2022, which we refer to as our senior notes, contain a number of restrictive covenants that impose significant operating and financial restrictions on us and may limit our ability to engage in acts that may be in our best interest, including restrictions on our ability to:

• incur additional indebtedness, guarantee indebtedness, and incur liens;

• pay dividends or make other distributions or repurchase or redeem capital stock;

• prepay, redeem, or repurchase certain subordinated debt;

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• issue certain preferred stock or similar redeemable equity securities;

• make loans and investments;

• sell assets;

• enter into transactions with affiliates;

• alter the businesses we conduct;

• enter into agreements restricting our subsidiaries’ ability to pay dividends; and

• consolidate, merge, or sell all or substantially all of our assets.

As a result of these restrictions, we may be limited in how we conduct our business, grow in accordance with our strategy, compete effectively, or take advantage of new business opportunities. In addition, the restrictive covenants in the credit facility require us to maintain specified financial ratios and satisfy other financial condition tests. Our ability to meet those financial ratios and tests can be affected by events beyond our control, and we may be unable to meet them.

A default under our indenture or credit facility would have a material, adverse effect on our business.

Our failure to make scheduled payments on our debt or our breach of the covenants or restrictions under the indenture that governs our senior notes or under our credit facility could result in an event of default under the applicable indebtedness. Such a default would have a material, adverse effect on our business and financial condition, including the following, among others:

• Our lenders could declare all outstanding principal and interest to be due and payable, and we and our subsidiaries may not have sufficient assets to repay that indebtedness.

• Our secured lenders could foreclose against the assets securing their borrowings.

• Our lenders under the credit facility could terminate all commitments to extend further credit under that facility.

• We could be forced into bankruptcy or liquidation.

Our material indebtedness and interest expense could adversely affect our financial condition.

As of March 31, 2018, our total debt was $820.2 million, made up of $275.0 million of senior notes,$537.3 million of loan obligations under our credit facility and $7.9 million of other debt. We had unused commitments of $494.2 million under our credit facility (after giving effect to letter of credit obligations).

Subject to the limits contained in the credit facility, the indenture that governs our senior notes, and our other debt instruments, we may be able to incur substantial additional debt from time to time to finance working capital, capital expenditures, investments or acquisitions, or for other purposes. If we do so, the risks related to our level of debt could intensify. Specifically, our level of debt could have important consequences, including the following:

• making it more difficult for us to satisfy our obligations with respect to our debt;

• limiting our ability to obtain additional financing to fund future working capital, capital expenditures, acquisitions, or other general corporate requirements;

• requiring a substantial portion of our cash flows to be dedicated to debt service payments instead of other purposes, thereby reducing the amount of cash flows available for working capital, capital expenditures, acquisitions, and other general corporate purposes;

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• increasing our vulnerability to general adverse economic and industry conditions;

• exposing us to the risk of increased interest rates as some of our borrowings, including borrowings under our credit facility, are at variable rates of interest;

• limiting our flexibility in planning for and reacting to changes in the industry and marketplaces in which we compete;

• placing us at a disadvantage compared to other, less leveraged competitors; and

• increasing our cost of borrowing.

We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful.

Our ability to make scheduled payments on or refinance our debt obligations depends on our financial condition and operating performance, which are subject to economic and competitive conditions and to various financial, business, legislative, regulatory, and other factors beyond our control. We may be unable to maintain a level of cash flows from operating activities sufficient to permit us to pay the principal, premium, if any, and interest on our indebtedness. If our cash flows and capital resources are insufficient to fund our debt service obligations, we could face substantial liquidity problems and could be forced to reduce or delay investments and capital expenditures or to dispose of material assets or operations, seek additional debt or equity capital, or restructure or refinance our indebtedness. We may not be able to effect any such alternative measures, if necessary, on commercially reasonable terms or at all.

If we cannot make scheduled payments on our debt, we will be in default. Our inability to generate sufficient cash flows to satisfy our debt obligations, or to refinance our indebtedness on commercially reasonable terms or at all, would materially and adversely affect our financial position and results of operations.

Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.

Borrowings under our credit facility are at variable rates of interest and expose us to interest rate risk, and any interest rate swaps we enter into in order to reduce interest rate volatility may not fully mitigate our interest rate risk. If interest rates were to increase, our debt service obligations on the variable rate indebtedness would increase even if the amount borrowed remained the same, and our net income and cash flows, including cash available for servicing our indebtedness, will correspondingly decrease. As of March 31, 2018, a hypothetical 100 basis point increase in rates, inclusive of our outstanding interest rate swaps, would result in an increase of interest expense of approximately $4.0 millionover the next 12 months.

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Border controls and duties and restrictions on cross-border commerce may negatively impact our business.

Many governments impose restrictions on shipping goods into their countries, as well as protectionist measures such as customs duties and tariffs that may apply directly to product categories comprising a material portion of our revenues. The customs laws, rules and regulations that we are required to comply with are complex and subject to unpredictable enforcement and modification. As a result of these restrictions, we have from time to time experienced delays in shipping our manufactured products into certain countries, and changes in cross-border regulations could have a significant negative effect on our business. For example, the current United States administration has signaled the possibility of major changes in trade policy between the United States and other countries, such as the imposition of additional tariffs or duties on imported products. Because we produce most physical products for our United States customers at our facilities in Canada and Mexico and we source most materials for our products outside the United States, including large amounts of sourcing from China, major changes in tax policy or trade relations could adversely affect our business and results of operations.

If we are unable to protect our intellectual property rights, our reputation and brands could be damaged, and others may be able to use our technology, which could substantially harm our business and financial results.

We rely on a combination of patents, trademarks, trade secrets, copyrights, and contractual restrictions to protect our intellectual property, but these protective measures afford only limited protection. Despite our efforts to protect our proprietary rights, unauthorized parties may be able to copy or use technology or information that we consider proprietary. There can be no guarantee that any of our pending patent applications or continuation patent applications will be granted, and from time to time we face infringement, invalidity, intellectual property ownership, or similar claims brought by third parties with respect to our patents. In addition, despite our trademark registrations throughout the world, our competitors or other entities may adopt names, marks, or domain names similar to ours, thereby impeding our ability to build brand identity and possibly leading to customer confusion. Enforcing our intellectual property rights can be extremely costly, and a failure to protect or enforce these rights could damage our reputation and brands and substantially harm our business and financial results.

Intellectual property disputes and litigation are costly and could cause us to lose our exclusive rights, subject us to liability, or require us to stop some of our business activities.

From time to time, we receive claims from third parties that we infringe their intellectual property rights, that we are required to enter into patent licenses covering aspects of the technology we use in our business, or that we improperly obtained or used their confidential or proprietary information. Any litigation, settlement, license, or other proceeding relating to intellectual property rights, even if we settle it or it is resolved in our favor, could be costly, divert our management's efforts from managing and growing our business, and create uncertainties that may make it more difficult to run our operations. If any parties successfully claim that we infringe their intellectual property rights, we might be forced to pay significant damages and attorney's fees, and we could be restricted from using certain technologies important to the operation of our business.

Our business is dependent on the Internet, and unfavorable changes in government regulation of the Internet, e-commerce, and email marketing could substantially harm our business and financial results.

Due to our dependence on the Internet for most of our sales, laws specifically governing the Internet, e-commerce, and email marketing may have a greater impact on our operations than other more traditional businesses. Existing and future laws, such as laws covering pricing, customs, privacy, consumer protection, or commercial email, may impede the growth of e-commerce and our ability to compete with traditional “bricks and mortar” retailers. Existing and future laws or unfavorable changes or interpretations of these laws could substantially harm our business and financial results.

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The failure of our business partners to use legal and ethical business practices could negatively impact our business.

We contract with multiple business partners in an increasing number of jurisdictions worldwide, including sourcing the raw materials for the products we sell from an expanding number of suppliers and contracting with third-party merchants and manufacturers for the placement and fulfillment of customer orders. We require our suppliers, fulfillers, and merchants to operate in compliance with all applicable laws, including those regarding corruption, working conditions, employment practices, safety and health, and environmental compliance, but we cannot control their business practices. We may not be able to adequately vet, monitor, and audit our many business partners (or their suppliers) throughout the world, and our decentralized structure heightens this risk, as not all of our businesses have equal resources to manage their business partners. If any of them violates labor, environmental, or other laws or implements business practices that are regarded as unethical or inconsistent with our values, our reputation could be severely damaged, and our supply chain and order fulfillment process could be interrupted, which could harm our sales and results of operations.

If we were required to review the content that our customers incorporate into our products and interdict the shipment of products that violate copyright protections or other laws, our costs would significantly increase, which would harm our results of operations.

Because of our focus on automation and high volumes, the vast majority of our sales do not involve any human-based review of content. Although our websites' terms of use specifically require customers to make representations about the legality and ownership of the content they upload for production, there is a risk that a customer may supply an image or other content for an order we produce that is the property of another party used without permission, that infringes the copyright or trademark of another party, or that would be considered to be defamatory, hateful, obscene, or otherwise objectionable or illegal under the laws of the jurisdiction(s) where that customer lives or where we operate. If we were to become legally obligated to perform manual screening of customer orders, our costs would increase significantly, and we could be required to pay substantial penalties or monetary damages for any failure in our screening process.

We are subject to customer payment-related risks.

We accept payments for our products and services on our websites by a variety of methods, including credit or debit card, PayPal, check, wire transfer, or other methods. In some geographic regions, we rely on one or two third party companies to provide payment processing services. If any of the payment processing or other companies with which we have contractual arrangements became unwilling or unable to provide these services to us or they or we are unable to comply with our contractual requirements under such arrangements, then we would need to find and engage replacement providers, which we may not be able to do on terms that are acceptable to us or at all, or to process the payments ourselves. Any of these scenarios could be disruptive to our business as they could be costly and time consuming and may unfavorably impact our customers.

As we offer new payment options to our customers, we may be subject to additional regulations, compliance requirements and fraud risk. For some payment methods, including credit and debit cards, we pay interchange and other fees, which may increase over time and raise our operating costs and lower our profit margins or require that we charge our customers more for our products. We are also subject to payment card association and similar operating rules and requirements, which could change or be reinterpreted to make it difficult or impossible for us to comply. If we fail to comply with these rules and requirements, we may be subject to fines and higher transaction fees and lose our ability to accept credit and debit card payments from our customers or facilitate other types of online payments, and our business and operating results could be materially adversely affected.

In addition, we may be liable for fraudulent transactions conducted on our websites, such as through the use of stolen credit card numbers. To date, quarterly losses from payment fraud have not exceeded 1% of total revenues in any quarter, but we continue to face the risk of significant losses from this type of fraud.

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We may be subject to product liability or environmental compliance claims if people, property, or the environment are harmed by the products we sell.

Some of the products we sell may expose us to product liability or environmental compliance claims relating to issues such as personal injury, death, property damage, or the use or disposal of environmentally harmful substances and may require product recalls or other actions. Any claims, litigation, or recalls could be costly to us and damage our brands and reputation.

Our inability to use or maintain domain names in each country or region where we currently or intend to do business could negatively impact our brands and our ability to sell our products and services in that country or region.

We may not be able to prevent third parties from acquiring domain names that use our brand names or other trademarks or that otherwise infringe or decrease the value of our trademarks and other proprietary rights. If we are unable to use or maintain a domain name in a particular country or region, then we could be forced to purchase the domain name from an entity that owns or controls it, which we may not be able to do on commercially acceptable terms or at all; we may incur significant additional expenses to develop a new brand to market our products within that country; or we may elect not to sell products in that country.

We do not collect indirect taxes in all jurisdictions, which could expose us to tax liabilities.

In some of the jurisdictions where we sell products and services, we do not collect or have imposed upon us sales, value added or other consumption taxes, which we refer to as indirect taxes. The application of indirect taxes to e-commerce businesses such as Cimpress is a complex and evolving issue, and in many cases, it is not clear how existing tax statutes apply to the Internet or e-commerce. For example, some state governments in the United States have imposed or are seeking to impose indirect taxes on Internet sales. If a government entity claims that we should have been collecting indirect taxes on the sale of our products in a jurisdiction where we have not been doing so, then we could incur substantial tax liabilities for past sales.

If we are unable to retain security authentication certificates, which are supplied by a limited number of third party providers over which we exercise little or no control, our business could be harmed.

We are dependent on a limited number of third party providers of website security authentication certificates that are necessary for conducting secure transactions over the Internet. Despite any contractual protections we may have, these third party providers can disable or revoke, and in the past have disabled or revoked, our security certificates without our consent, which would render our websites inaccessible to some of our customers and could discourage other customers from accessing our sites. Any interruption in our customers' ability or willingness to access our websites if we do not have adequate security certificates could result in a material loss of revenue and profits and damage to our brands.

Risks Related to Our Corporate Structure

Challenges by various tax authorities to our international structure could, if successful, increase our effective tax rate and adversely affect our earnings.

We are a Dutch limited liability company that operates through various subsidiaries in a number of countries throughout the world. Consequently, we are subject to tax laws, treaties and regulations in the countries in which we operate, and these laws and treaties are subject to interpretation. From time to time, we are subject to tax audits, and the tax authorities in these countries could claim that a greater portion of the income of the Cimpress N.V. group should be subject to income or other tax in their respective jurisdictions, which could result in an increase to our effective tax rate and adversely affect our results of operations.

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Changes in tax laws, regulations and treaties could affect our tax rate and our results of operations.

A change in tax laws, treaties or regulations, or their interpretation, of any country in which we operate could result in a higher tax rate on our earnings, which could result in a significant negative impact on our earnings and cash flow from operations. In addition to the passage of the Tax Cuts and Jobs Act in the United States, there are currently multiple initiatives for comprehensive tax reform underway in other key jurisdictions where we have operations. We continue to assess the impact of the U.S. Tax Cuts and Jobs Act as well as various international tax reform proposals and modifications to existing tax treaties in all jurisdictions where we have operations that could result in a material impact on our income taxes. We cannot predict whether any other specific legislation will be enacted or the terms of any such legislation. However, if such proposals were enacted, or if modifications were to be made to certain existing treaties, the consequences could have a materially adverse impact on us, including increasing our tax burden, increasing costs of our tax compliance or otherwise adversely affecting our financial condition, results of operations and cash flows.

Our intercompany arrangements may be challenged, which could result in higher taxes or penalties and an adverse effect on our earnings.

We operate pursuant to written transfer pricing agreements among Cimpress N.V. and its subsidiaries, which establish transfer prices for various services performed by our subsidiaries for other Cimpress group companies. If two or more affiliated companies are located in different countries, the tax laws or regulations of each country generally will require that transfer prices be consistent with those between unrelated companies dealing at arm's length. With the exception of certain jurisdictions where we have obtained rulings or advance pricing agreements, our transfer pricing arrangements are not binding on applicable tax authorities, and no official authority in any other country has made a determination as to whether or not we are operating in compliance with its transfer pricing laws. If tax authorities in any country were successful in challenging our transfer prices as not reflecting arm's length transactions, they could require us to adjust our transfer prices and thereby reallocate our income to reflect these revised transfer prices. A reallocation of taxable income from a lower tax jurisdiction to a higher tax jurisdiction would result in a higher tax liability to us. In addition, if the country from which the income is reallocated does not agree with the reallocation, both countries could tax the same income, resulting in double taxation.

Our Articles of Association, Dutch law and the independent foundation, Stichting Continuïteit Cimpress, may make it difficult to replace or remove management, may inhibit or delay a change of control or may dilute shareholder voting power.

Our Articles of Association, or Articles, as governed by Dutch law, limit our shareholders' ability to suspend or dismiss the members of our management board and supervisory board or to overrule our supervisory board's nominees to our management board and supervisory board by requiring a supermajority vote to do so under most circumstances. As a result, there may be circumstances in which shareholders may not be able to remove members of our management board or supervisory board even if holders of a majority of our ordinary shares favor doing so.

In addition, an independent foundation, Stichting Continuïteit Cimpress, or the Foundation, exists to safeguard the interests of Cimpress N.V. and its stakeholders, which include but are not limited to our shareholders, and to assist in maintaining Cimpress' continuity and independence. To this end, we have granted the Foundation a call option pursuant to which the Foundation may acquire a number of preferred shares equal to the same number of ordinary shares then outstanding, which is designed to provide a protective measure against unsolicited take-over bids for Cimpress and other hostile threats. If the Foundation were to exercise the call option, it may prevent a change of control or delay or prevent a takeover attempt, including a takeover attempt that might result in a premium over the market price for our ordinary shares. Exercise of the preferred share option would also effectively dilute the voting power of our outstanding ordinary shares by one half.

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We have limited flexibility with respect to certain aspects of capital management and certain corporate transactions.

Dutch law imposes limitations and requirements on corporate actions such as the payment of dividends, issuance of new shares, repurchase of outstanding shares, and corporate acquisitions of a certain size, among other actions. For example, Dutch law requires shareholder approval for many corporate actions that would not be subject to shareholder approval if we were incorporated in the United States. Situations may arise where the flexibility to issue shares, pay dividends, purchase shares, acquire other companies, or take other corporate actions would be beneficial to us, but is subject to limitations, subject to delay due to shareholder approval requirements, or unavailable under Dutch law.

Because of our corporate structure, our shareholders may find it difficult to pursue legal remedies against the members of our supervisory board or management board.

Our Articles and our internal corporate affairs are governed by Dutch law, and the rights of our shareholders and the responsibilities of our supervisory board and management board are different from those established under United States laws. For example, under Dutch law derivative lawsuits are generally not available, and our supervisory board and management board are responsible for acting in the best interests of the company, its business and all of its stakeholders generally (including employees, customers and creditors), not just shareholders. As a result, our shareholders may find it more difficult to protect their interests against actions by members of our supervisory board or management board than they would if we were a U.S. corporation.

Because of our corporate structure, our shareholders may find it difficult to enforce claims based on United States federal or state laws, including securities liabilities, against us or our management team.

We are incorporated under the laws of the Netherlands, and the vast majority of our assets are located outside of the United States. In addition, some of our officers and management reside outside of the United States. In most cases, a final judgment for the payment of money rendered by a U.S. federal or state court would not be directly enforceable in the Netherlands. Although there is a process under Dutch law for petitioning a Dutch court to enforce a judgment rendered in the United States, there can be no assurance that a Dutch court would impose civil liability on us or our management team in any lawsuit predicated solely upon U.S. securities or other laws. In addition, because most of our assets are located outside of the United States, it could be difficult for investors to place a lien on our assets in connection with a claim of liability under U.S. laws. As a result, it may be difficult for investors to enforce U.S. court judgments or rights predicated upon U.S. laws against us or our management team outside of the United States.

We may not be able to make distributions or purchase shares without subjecting our shareholders to Dutch withholding tax.

A Dutch withholding tax may be levied on dividends and similar distributions made by Cimpress N.V. to its shareholders at the statutory rate of 15% if we cannot structure such distributions as being made to shareholders in relation to a reduction of par value, which would be non-taxable for Dutch withholding tax purposes. We have purchased our shares and may seek to purchase additional shares in the future. Under our Dutch Advanced Tax Ruling, a purchase of shares should not result in any Dutch withholding tax if we hold the purchased shares in treasury for the purpose of issuing shares pursuant to employee share awards or for the funding of acquisitions. However, if the shares cannot be used for these purposes, or the Dutch tax authorities successfully challenge the use of the shares for these purposes, such a purchase of shares may be treated as a partial liquidation subject to the 15% Dutch withholding tax to be levied on the difference between our average paid in capital per share for Dutch tax purposes and the redemption price per share, if higher.

We may be treated as a passive foreign investment company for United States tax purposes, which may subject United States shareholders to adverse tax consequences.

If our passive income, or our assets that produce passive income, exceed levels provided by law for any taxable year, we may be characterized as a passive foreign investment company, or a PFIC, for United States federal income tax purposes. If we are treated as a PFIC, U.S. holders of our ordinary shares would be subject to a disadvantageous United States federal income tax regime with respect to the distributions they receive and the gain, if any, they derive from the sale or other disposition of their ordinary shares.

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We believe that we were not a PFIC for the tax year ended June 30, 2017 and we expect that we will not become a PFIC in the foreseeable future. However, whether we are treated as a PFIC depends on questions of fact as to our assets and revenues that can only be determined at the end of each tax year. Accordingly, we cannot be certain that we will not be treated as a PFIC in future years.

If a United States shareholder acquires 10% or more of our ordinary shares, it may be subject to increased United States taxation under the “controlled foreign corporation” rules. Additionally, this may negatively impact the demand for our ordinary shares.

If a United States shareholder owns 10% or more of our ordinary shares, it may be subject to increased United States federal income taxation (and possibly state income taxation) under the “controlled foreign corporation” rules. In general, if a U.S. person owns (or is deemed to own) at least 10% of the voting power of a non-U.S. corporation, or “10% U.S. Shareholder,” and if such non-U.S. corporation is a “controlled foreign corporation,” or “CFC,” for an uninterrupted period of 30 days or more during a taxable year, then such 10% U.S. Shareholder who owns (or is deemed to own) shares in the CFC on the last day of the CFC's taxable year must include in its gross income for United States federal income tax (and possibly state income tax) purposes its pro rata share of the CFC's “subpart F income,” even if the "subpart F income" is not distributed. In general, a non-U.S. corporation is considered a CFC if one or more 10% U.S. Shareholders together own more than 50% of the voting power or value of the corporation on any day during the taxable year of the corporation. “Subpart F income” consists of, among other things, certain types of dividends, interest, rents, royalties, gains, and certain types of income from services and personal property sales.

The rules for determining ownership for purposes of determining 10% U.S. Shareholder and CFC status are complicated, depend on the particular facts relating to each investor, and are not necessarily the same as the rules for determining beneficial ownership for SEC reporting purposes. For taxable years in which we are a CFC for an uninterrupted period of 30 days or more, each of our 10% U.S. Shareholders will be required to include in its gross income for United States federal income tax purposes its pro rata share of our "subpart F income," even if the subpart F income is not distributed by us. We currently do not believe we are a CFC. However, whether we are treated as a CFC can be affected by, among other things, facts as to our share ownership that may change. Accordingly, we cannot be certain that we will not be treated as a CFC in future years.

The risk of being subject to increased taxation as a CFC may deter our current shareholders from acquiring additional ordinary shares or new shareholders from establishing a position in our ordinary shares. Either of these scenarios could impact the demand for, and value of, our ordinary shares.

We will pay taxes even if we are not profitable on a consolidated basis, which could harm our results of operations.

The intercompany service and related agreements among Cimpress N.V. and its direct and indirect subsidiaries ensure that many of the subsidiaries realize profits on an individual legal entity basis. As a result, if the Cimpress group is less profitable, or even not profitable on a consolidated basis, many of our subsidiaries will be profitable and incur income taxes in their respective jurisdictions.

The ownership of our ordinary shares is highly concentrated, which could cause or exacerbate volatility in our share price.

More than 75% of our ordinary shares are held by our top 10 shareholders, and we may repurchase shares in the future, which could further increase the concentration of our share ownership. Because of this reduced liquidity, the trading of relatively small quantities of shares by our shareholders could disproportionately influence the price of those shares in either direction. The price for our shares could, for example, decline precipitously if a large number of our ordinary shares were sold on the market without commensurate demand, as compared to a company with greater trading liquidity that could better absorb those sales without adverse impact on its share price.

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Item 2.        Unregistered Sales of Equity Securities and Use of Proceeds

On November 14, 2017, our Supervisory Board authorized the repurchase of up to 6,300,000 of our issued and outstanding ordinary shares on the open market (including block trades that satisfy the safe harbor provisions of Rule 10b-18 pursuant to the U.S. Securities Exchange Act of 1934), through privately negotiated transactions, or in one or more self-tender offers. This share repurchase program expires on May 14, 2019. The following table outlines the purchase of our ordinary shares during the three months ended March 31, 2018:

	Total Number of Shares Purchased	Average Price Paid Per Share (1)		Total Number of Shares Purchased as Part of a Publicly Announced Program	Approximate Number of Shares that May Yet be Purchased Under the Program
January 1, 2018 through January 31, 2018	321,113	$	123.23	442,557	5,857,443
February 1, 2018 through February 28, 2018	—	—		—	5,857,443
March 1, 2018 through March 31, 2018	—	—		—	5,857,443
Total	321,113	$	123.23	442,557	5,857,443

___________

(1) Average Price paid per share includes commissions paid.

Item 6.        Exhibits

Exhibit
No.	Description
31.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, Rule 13a-14(a)/15d-14(a), by Chief Executive Officer
31.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, Rule 13a-14(a)/15d-14(a), by Chief Financial Officer
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, by Chief Executive Officer and Chief Financial Officer
101	The following materials from this Quarterly Report on Form 10-Q, formatted in Extensible Business Reporting Language (XBRL): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Cash Flows, and (iv) Notes to Condensed Consolidated Financial Statements.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

May 3, 2018                     Cimpress N.V.                                                    

By:	/s/ Sean E. Quinn
	Sean E. Quinn
	Chief Financial Officer (Principal Financial and Accounting Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Robert S. Keane, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Cimpress N.V.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 3, 2018

/s/ Robert S. Keane

Robert S. Keane

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Sean E. Quinn, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Cimpress N.V.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 3, 2018

/s/ Sean E. Quinn

Sean E. Quinn

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Cimpress N.V. (the “Company”) for the fiscal quarter ended March 31, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Robert S. Keane, Chief Executive Officer, and Sean E. Quinn, Chief Financial Officer, of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, that, to his knowledge on the date hereof:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 3, 2018	/s/ Robert S. Keane
		Robert S. Keane
		Chief Executive Officer
Date:	May 3, 2018	/s/ Sean E. Quinn
		Sean E. Quinn
		Chief Financial Officer

XML

Document and Entity Information Document - shares	9 Months Ended
	Mar. 31, 2018	Apr. 27, 2018
Document and Entity Information [Abstract]
Entity registrant name	CIMPRESS N.V.
Entity central index key	0001262976
Document type	10-Q
Document period end date	Mar. 31, 2018
Amendment flag	false
Document fiscal year focus	2018
Document fiscal period focus	Q3
Current fiscal year end date	--06-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity filer category	Large Accelerated Filer
Entity common stock, shares outstanding		30,715,831

XML

Consolidated Balance Sheets - USD ($) $ in Thousands		Mar. 31, 2018	Jun. 30, 2017
Current assets:
Cash and cash equivalents		$ 49,878	$ 25,697
Accounts receivable, net of allowances of $7,520 and $3,590, respectively		65,632	48,630
Inventory		63,009	46,563
Prepaid expenses and other current assets		69,231	78,835
Assets held for sale		0	46,276
Total current assets		247,750	246,001
Property, plant and equipment, net		501,115	511,947
Software and website development costs, net		56,279	48,470
Deferred tax assets		66,753	48,004
Goodwill		542,369	514,963
Intangible assets, net		250,593	275,924
Other assets		44,994	34,560
Total assets		1,709,853	1,679,869
Current liabilities:
Accounts payable		147,089	127,386
Accrued expenses		210,407	175,567
Deferred revenue		34,991	30,372
Short-term debt	[1]	26,214	28,926
Other current liabilities		42,922	78,435
Liabilities held for sale		0	8,797
Total current liabilities		461,623	449,483
Deferred tax liabilities		56,089	60,743
Lease financing obligation		103,737	106,606
Long-term debt		786,401	847,730
Other liabilities		120,610	94,683
Total liabilities		1,528,460	1,559,245
Temporary equity
Redeemable noncontrolling interests		87,805	45,412
Shareholders’ equity:
Preferred shares, par value €0.01 per share, 100,000,000 shares authorized; none issued and outstanding		0	0
Ordinary shares, par value €0.01 per share, 100,000,000 shares authorized; 44,080,627 shares issued; and 30,714,481 and 31,415,503 shares outstanding, respectively		615	615
Treasury shares, at cost, 13,366,146 and 12,665,124 shares, respectively		(675,536)	(588,365)
Additional paid-in capital		390,758	361,376
Retained earnings		459,940	414,771
Accumulated other comprehensive loss		(82,476)	(113,398)
Total shareholders’ equity attributable to Cimpress N.V.		93,301	74,999
Noncontrolling Interest (Note 10)		287	213
Total shareholders' equity		93,588	75,212
Total liabilities, noncontrolling interests and shareholders’ equity		$ 1,709,853	$ 1,679,869

[1] Balances as of March 31, 2018 and June 30, 2017 are inclusive of short-term debt issuance costs and debt discounts of $1,846 and $1,693, respectively

XML

Consolidated Balance Sheets (Parenthetical) $ in Thousands	Mar. 31, 2018 USD ($) shares	Mar. 31, 2018 € / shares	Jun. 30, 2017 USD ($) shares	Jun. 30, 2017 € / shares
Current Assets
Allowance for doubtful accounts receivable, current | $	$ 7,520		$ 3,590
Stockholders' Equity
Preferred shares, par value | € / shares		€ 0.01		€ 0.01
Preferred shares, shares authorized	100,000,000		100,000,000
Preferred shares, shares issued	0		0
Preferred shares, shares outstanding	0		0
Ordinary shares, par value | € / shares		€ 0.01		€ 0.01
Ordinary shares, shares authorized	100,000,000		100,000,000
Ordinary shares, shares issued	44,080,627		44,080,627
Common Stock, Shares, outstanding	30,714,481		31,415,503
Treasury shares, shares	13,366,146		12,665,124

XML

Consolidated Statements of Operations - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Revenue		$ 636,069	$ 550,585	$ 1,961,407	$ 1,571,149
Cost of revenue (1)	[1]	319,209	268,482	963,249	757,898
Technology and development expense (1)	[1]	61,267	63,236	182,598	178,528
Marketing and selling expense (1)	[1]	179,591	167,284	546,469	451,310
General and administrative expense (1)	[1]	44,103	45,730	127,869	150,471
Amortization of acquired intangible assets		12,941	13,450	38,132	33,542
Restructuring expense (1)	[1]	2,331	24,790	14,686	25,890
Gain on sale of subsidiaries		0	0	(47,545)	0
Impairment of goodwill and acquired intangible assets		0	9,556	0	9,556
Income (loss) from operations		16,627	(41,943)	135,949	(36,046)
Other (expense) income, net		(1,558)	(6,582)	(25,602)	21,835
Interest expense, net		(12,652)	(11,584)	(38,263)	(31,119)
Income (loss) before income taxes		2,417	(60,109)	72,084	(45,330)
Income tax expense (benefit)		4,019	(17,431)	19,657	(7,644)
Net (loss) income		(1,602)	(42,678)	52,427	(37,686)
Add: Net (income) loss attributable to noncontrolling interest		(663)	(256)	(1,394)	677
Net (loss) income attributable to Cimpress N.V.		$ (2,265)	$ (42,934)	$ 51,033	$ (37,009)
Basic net (loss) income per share attributable to Cimpress N.V.		$ (0.07)	$ (1.38)	$ 1.65	$ (1.18)
Diluted net (loss) income per share attributable to Cimpress N.V.		$ (0.07)	$ (1.38)	$ 1.58	$ (1.18)
Weighted average shares outstanding — basic		30,724,018	31,103,388	30,992,066	31,323,451
Weighted average shares outstanding — diluted		30,724,018	31,103,388	32,276,520	31,323,451
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense		$ 13,492	$ 12,797	$ 33,718	$ 35,645
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense		105	91	240	209
Technology and development expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense		3,242	1,123	7,916	6,566
Marketing and selling expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense		2,138	1,242	4,981	3,542
General and administrative expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense		7,289	4,084	19,254	19,071
Restructuring Charges
Restructuring expense (1)		2,331	24,790	14,686	25,890
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense		$ 718	$ 6,257	$ 1,327	$ 6,257

[1] Share-based compensation is allocated as follows:

XML

Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Other comprehensive (loss) income, net of tax:
Net income (loss)	$ (1,602)	$ (42,678)	$ 52,427	$ (37,686)
Foreign currency translation gain (loss)	(8,799)	14,884	32,651	(23,086)
Net unrealized gains (losses) on derivative instruments designated and qualifying as cash flow hedges	8,408	(426)	12,822	7,049
Amounts reclassified from accumulated other comprehensive loss to net (loss) income on derivative instruments	(2,416)	895	(6,550)	(4,698)
Unrealized loss on available-for-sale-securities	0	0	0	(5,756)
Amounts reclassified from accumulated other comprehensive loss to net (loss) income for realized gains on available-for-sale securities	0	0	0	2,268
Gain on pension benefit obligation, net	0	2,185	0	2,221
Comprehensive (loss) income	(4,409)	(25,140)	91,350	(59,688)
Add: Comprehensive (income) loss attributable to noncontrolling interests	(2,343)	(778)	(7,077)	3,847
Total comprehensive (loss) income attributable to Cimpress N.V.	$ (6,752)	$ (25,918)	$ 84,273	$ (55,841)

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating activities
Net income (loss)	$ 52,427	$ (37,686)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	127,120	115,784
Impairment of goodwill and acquired intangible assets	0	9,556
Share-based compensation expense	33,718	35,645
Deferred taxes	(9,552)	(37,849)
Gain on sale of subsidiaries	(47,545)	0
Change in contingent earn-out liability	1,774	27,364
Marketable Securities, Realized Gain	0	(2,268)
Unrealized loss on derivatives not designated as hedging instruments included in net income (loss)	9,246	839
Payments of contingent consideration in excess of acquisition date fair value	(4,639)	0
Effect of exchange rate changes on monetary assets and liabilities denominated in non-functional currency	5,211	(7,215)
Other non-cash items	2,129	4,123
Changes in operating assets and liabilities:
Accounts receivable	(14,696)	3,434
Inventory	(12,104)	(7,136)
Prepaid expenses and other assets	136	2,389
Accounts payable	18,448	9,908
Accrued expenses and other liabilities	(17,040)	6,756
Net cash provided by operating activities	144,633	123,644
Investing activities
Purchases of property, plant and equipment	(47,441)	(56,916)
Proceeds from the sale of subsidiaries, net of transaction costs and cash divested	93,779	0
Business acquisitions, net of cash acquired	(110)	(204,875)
Purchases of intangible assets	(308)	(110)
Capitalization of software and website development costs	(29,476)	(28,678)
Proceeds from sale of available-for-sale securities	0	6,346
Other investing activities	(2,465)	6,727
Net cash provided by (used in) investing activities	13,979	(277,506)
Financing activities
Proceeds from borrowings of debt	590,508	612,004
Payments of debt and debt issuance costs	(659,404)	(398,282)
Payments of purchase consideration included in acquisition-date fair value	(2,105)	(539)
Payments of withholding taxes in connection with equity awards	(3,080)	(10,816)
Payments of capital lease obligations	(13,779)	(12,029)
Purchase of ordinary shares	(94,710)	(50,008)
Purchase of noncontrolling interests	0	(20,230)
Proceeds from issuance of ordinary shares	11,516	331
Issuance of loans	(16,500)	0
Capital contribution from noncontrolling interest	35,390	0
Capital contribution from noncontrolling interest	0	1,404
Other financing activities	0	1,281
Net cash (used in) provided by financing activities	(152,164)	123,116
Effect of exchange rate changes on cash	5,691	(3,213)
Increase in cash held for sale	12,042	0
Net increase (decrease) in cash and cash equivalents	24,181	(33,959)
Cash and cash equivalents at beginning of period	25,697	77,426
Cash and cash equivalents at end of period	49,878	43,467
Supplemental disclosures of cash flow information:
Interest	33,856	27,430
Income taxes	17,888	35,967
Property and equipment acquired under capital leases	531	12,099
Amounts accrued related to business acquisitions	$ 3,864	$ 31,613

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Description of the Business

9 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of the Business

Description of the Business

We are a technology driven company that aggregates, largely via the internet, large volumes of small, individually customized orders for a broad spectrum of print, signage, apparel and similar products. We operate in a largely decentralized manner. Our businesses fulfill orders with manufacturing capabilities that include Cimpress owned and operated manufacturing facilities and a network of third-party fulfillers to create customized products on demand. Those businesses bring their products to market through a portfolio of customer-focused brands serving the needs of micro, small and medium sized businesses, resellers and consumers. These brands include Vistaprint, our global brand for micro business marketing products and services, as well as brands that we have acquired that serve the needs of various market segments, including resellers, micro, small and medium sized businesses with differentiated service needs, and consumers purchasing products for themselves and their families.

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Summary of Significant Accounting Policies

9 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and, accordingly, do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting primarily of normal recurring accruals, considered necessary for fair presentation of the results of operations for the interim periods reported and of our financial condition as of the date of the interim balance sheet have been included.

The consolidated financial statements include the accounts of Cimpress N.V., its wholly owned subsidiaries, entities in which we maintain a controlling financial interest, and those entities in which we have a variable interest and are the primary beneficiary. Intercompany balances and transactions have been eliminated.

Operating results for the three and nine months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending June 30, 2018 or for any other period. The consolidated balance sheet at June 30, 2017 has been derived from our audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended June 30, 2017 included in our Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (the “SEC”).

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We believe our most significant estimates are associated with the ongoing evaluation of the recoverability of our long-lived assets and goodwill, estimated useful lives of assets, share-based compensation, accounting for business combinations, and income taxes and related valuation allowances, among others. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results could differ from those estimates.

Share-based compensation

Total share-based compensation costs were$13,492 and $33,718 for the three and nine months ended March 31, 2018, respectively, and $12,797 and $35,645 for the three and nine months ended March 31, 2017, respectively.

During the first quarter of fiscal 2018, we issued supplemental performance share unit awards to certain members of management. In addition to a service vesting and market condition (based on the three year moving average of the Cimpress share price) contained in our standard performance share units, these supplemental awards also contain a multi-year financial performance condition. The evaluation of achievement of the performance condition is at the discretion of the Compensation Committee and, therefore, the awards are subject to mark-to-market accounting throughout the three year performance vesting period. The compensation expense for these awards is estimated at fair value using a Monte Carlo simulation valuation model and compensation costs are recorded only if it is probable that the performance condition will be achieved. We continue to conclude that the performance condition is probable of achievement and for the three and nine months ended March 31, 2018, we recognized $5,615 and $9,925 of share-based compensation expense, respectively. We will continue to reassess the probability each reporting period and if we determine the awards are not probable at some point during the performance vesting period we would reverse any expense recognized to date.

Sale of Albumprinter

On August 31, 2017 we sold our Albumprinter business, including FotoKnudsen AS, for a total of €78,382 ($93,071 based on the exchange rate as of the date of sale) in cash, net of transaction costs and cash divested (after $11,874 in pre-closing dividends). As a result of the sale, we recognized a gain of $47,545, net of transaction costs, within our consolidated statement of operations for the nine months ended March 31, 2018.

The transaction did not qualify for discontinued operations presentation, and as of June 30, 2017, the Albumprinter business assets and liabilities were presented as held-for-sale in our consolidated balance sheet. In connection with the divestiture, we entered into an agreement with Albumprinter under which Albumprinter will continue to fulfill photo book orders for our Vistaprint business. Additionally, we agreed to provide Albumprinter with certain transitional support services for a period of up to one year from the date of the sale.

Foreign Currency Translation

Our non-U.S. dollar functional currency subsidiaries translate their assets and liabilities denominated in their functional currency to U.S. dollars at current rates of exchange in effect at the balance sheet date, and revenues and expenses are translated at average rates prevailing throughout the period. The resulting gains and losses from translation are included as a component of accumulated other comprehensive loss. Transaction gains and losses and remeasurement of assets and liabilities denominated in currencies other than an entity’s functional currency are included in other (expense) income, net in our consolidated statements of operations.

Other (expense) income, net

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

	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
(Losses) gains on derivatives not designated as hedging instruments (1)	$	(9,102	)	$	(817	)	$	(19,103	)	$	12,737
Currency-related gains (losses), net (2)	7,519			(6,304		)	(7,133		)	5,719
Other gains (3)	25			539			634			3,379
Total other (expense) income, net	$	(1,558	)	$	(6,582	)	$	(25,602	)	$	21,835

_____________________

(1) Primarily relates to both realized and unrealized (losses) gains on derivative currency forward and option contracts not designated as hedging instruments.

(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 gains (losses), net for the three and nine months ended March 31, 2018 and 2017 are primarily driven by this intercompany activity. In addition, we have certain cross-currency swaps designated as cash flow hedges, which hedge the remeasurement of certain intercompany loans, both presented in the same component above. Unrealized losses related to cross-currency swaps were $3,582and $9,708for the three and nine months ended March 31, 2018, respectively, and unrealized losses of $1,709 and gains of $4,684 for the three and nine months ended March 31, 2017, respectively.

(3) During the nine months ended March 31, 2017, we recognized a gain of $2,268 related to the sale of Plaza Create Co. Ltd. available for sale securities.

Net (Loss) Income Per Share Attributable to Cimpress N.V.

Basic net (loss) income per share attributable to Cimpress N.V. is computed by dividing net (loss) income attributable to Cimpress N.V. by the weighted-average number of ordinary shares outstanding for the respective period. Diluted net (loss) income per share attributable to Cimpress N.V. gives effect to all potentially dilutive securities, including share options, restricted share units (“RSUs”), restricted share awards ("RSAs") and performance share units ("PSUs"), if the effect of the securities is dilutive using the treasury stock method. Awards with performance or market conditions are included using the treasury stock method only if the conditions would have been met as of the end of the reporting period and their effect is dilutive.

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,
	2018	2017	2018	2017
Weighted average shares outstanding, basic	30,724,018	31,103,388	30,992,066	31,323,451
Weighted average shares issuable upon exercise/vesting of outstanding share options/RSUs/RSAs (1)	—	—	1,284,454	—
Shares used in computing diluted net (loss) income per share attributable to Cimpress N.V.	30,724,018	31,103,388	32,276,520	31,323,451
Weighted average anti-dilutive shares excluded from diluted net (loss) income per share attributable to Cimpress N.V.	1,448,530	1,262,902	3,054	1,379,481

______

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

Waltham Lease Arrangement

In July 2013, we executed a lease agreement to move our Lexington, Massachusetts, USA operations to a then yet to be constructed facility in Waltham, Massachusetts, USA. During the first quarter of fiscal 2016, the building was completed and we commenced lease payments in September 2015 and will make lease payments through September 2026.

For accounting purposes, we were deemed to be the owner of the Waltham building during the construction period, and accordingly we recorded the construction project costs incurred by the landlord as an asset with a corresponding financing obligation on our balance sheet. We evaluated the Waltham lease in the first quarter of fiscal 2016 and determined that the transaction did not meet the criteria for "sale-leaseback" treatment due to our planned subleasing activity over the term of the lease. Accordingly, we began depreciating the asset and incurring interest expense related to the financing obligation recorded on our consolidated balance sheet. We bifurcate the lease payments pursuant to the Waltham lease into (i) a portion that is allocated to the building and (ii) a portion that is allocated to the land on which the building was constructed. The portion of the lease obligations allocated to the land is treated as an operating lease that commenced in fiscal 2014.

Property, plant and equipment, net, included $112,956 and $116,045 as of March 31, 2018 and June 30, 2017, respectively, related to the building. The financing lease obligation and deferred rent credit related to the building on our consolidated balance sheets was $116,307 and $119,176 as of March 31, 2018 and June 30, 2017, respectively.

Treasury Shares

Treasury shares are accounted for using the cost method and are included as a component of shareholders' equity. During the nine months ended March 31, 2018 and 2017, we repurchased 895,377 and 593,763, respectively, of our ordinary shares for a total cost of $94,710 and $50,008, respectively, inclusive of transaction costs, in connection with our publicly announced share repurchase programs.

Recently Issued or Adopted Accounting Pronouncements

New Accounting Standards Adopted

In October 2016, the FASB issued Accounting Standards Update No. 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory" (ASU 2016-16), which requires the recognition for income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. We elected to early adopt the new standard during the first quarter of fiscal 2018, and recognized a reduction to prepaid and other current assets of $24,573, an increase in deferred tax assets of $18,710 and a cumulative-effect adjustment to retained earnings of $5,863. If we had not early adopted, the forecasted fiscal 2018 tax expense would be lower by $9,787.

Issued Accounting Standards to be Adopted

In August 2017, the FASB issued Accounting Standards Update No. 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (Topic 815)," (ASU 2017-12), which better aligns a company’s financial reporting for hedging activities with the economic objectives of those activities. The amendment is effective for us on July 1, 2019 and permits early adoption, including adoption in an interim period. The standard requires a modified retrospective transition approach, in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. We do not expect this standard to have material impact on our consolidated financial statements.

In May 2017, the FASB issued Accounting Standards Update No. 2017-09, "Compensation - Stock Compensation (Topic 718)," (ASU 2017-09), which clarifies the application of Topic 718 when accounting for changes in the terms and conditions of a share-based payment award. The new standard requires changes to the terms or conditions of a share-based payment award to be accounted for under modification accounting unless there is no change to the fair value, vesting conditions and classification of the award after modification. The amendment is effective for us on July 1, 2018 and permits early adoption. The amendment is to be applied prospectively, and we are currently evaluating the impact on our financial statements.

In November 2016, the FASB issued Accounting Standards Update No. 2016-18, "Statement of Cash Flows (Topic 230) Restricted Cash" (ASU 2016-18), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendment is effective for us on July 1, 2018 and permits early adoption. This amendment will affect the presentation of our statement of cash flows once adopted, and we do not expect it to have material impact on our consolidated financial statements.

In March 2016, the FASB issued Accounting Standards Update No. 2016-04, "Liabilities - Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products" (ASU 2016-04), which requires an entity to recognize breakage for a liability resulting from the sale of a prepaid stored-value product in proportion to the pattern of rights expected to be exercised by the product holder only to the extent that it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. The new standard is effective for us on July 1, 2018. The standard permits early adoption and should be applied either retrospectively to each period presented or by means of a cumulative adjustment to retained earnings as of the beginning of the fiscal year adopted. We do not expect the effect of ASU 2016-04 to have a material impact on our consolidated financial statements.

In March 2016, the FASB issued Accounting Standards Update No. 2016-02, "Leases (Topic 842)" (ASU 2016-02), which requires the recognition of lease assets and lease liabilities by lessees for those leases currently classified as operating leases. The standard also retains a distinction between finance leases and operating leases. The new standard is effective for us on July 1, 2019 and we expect to adopt the new standard using the modified retrospective approach. We also plan to use the transition relief package, in which we will not reassess the classification of our existing leases, whether any expired or existing contracts contain leases and if our existing leases have any initial direct costs. We are currently evaluating the requirements of the standard and we have not yet determined the impact of adoption on our consolidated financial statements.

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers" (ASU 2014-09), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This guidance will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for fiscal years beginning after December 15, 2017, which would result in an effective date for us of July 1, 2018. The standard permits the use of either the retrospective or modified retrospective method. We will adopt the new standard in the first quarter of fiscal 2019, and we will apply the modified retrospective approach.

We have substantially completed our impact assessment of the new standard, which was performed on a business unit by business unit basis through a review of contract terms and material revenue streams. We have identified an impact related to direct-response advertising costs, which are costs currently capitalized and expensed based on the guidance outlined in ASC 340. The guidance included in ASC 340 has been eliminated, and under the new revenue standard these costs will be expensed as incurred because they do not meet the requirements for capitalization since they are not direct and incremental to obtaining a contract. We expect this change to impact the timing for a portion of advertising expenses within our National Pen business, but we do not expect it to have a material impact on our consolidated results. We have also identified an impact related to customer loyalty programs that are offered by several of our businesses. Under the new revenue standard, the rewards associated with these programs will be recognized as an additional performance obligation, resulting in an allocation of the transaction price and deferral of revenue until the subsequent reward redemption. We do not expect this change to have a material impact on our consolidated results.

We are continuing to make changes to certain processes and internal controls, in order to address the impacts of the new standard, which we expect to finalize during the fourth quarter of fiscal 2018. Lastly, we are continuing to evaluate the disclosure requirements of the new standard.

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Fair Value Measurements

9 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

We use a three-level valuation hierarchy for measuring fair value and include detailed financial statement disclosures about fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

• Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

• Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following tables summarize our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy:

	March 31, 2018
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Interest rate swap contracts	$	10,360		$	—	$	10,360		$	—
Currency forward contracts	26			—		26			—
Currency option contracts	11			—		11			—
Total assets recorded at fair value	$	10,397		$	—	$	10,397		$	—
Liabilities
Cross-currency swap contracts	$	(42,073	)	$	—	$	(42,073	)	$	—
Currency forward contracts	(37,885		)	—		(37,885		)	—
Currency option contracts	(685		)	—		(685		)	—
Total liabilities recorded at fair value	$	(80,643	)	$	—	$	(80,643	)	$	—

	June 30, 2017
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Interest rate swap contracts	$	1,717		$	—	$	1,717		$	—
Total assets recorded at fair value	$	1,717		$	—	$	1,717		$	—
Liabilities
Interest rate swap contracts	$	(483	)	$	—	$	(483	)	$	—
Cross-currency swap contracts	(19,760		)	—		(19,760		)	—
Currency forward contracts	(14,700		)	—		(14,700		)	—
Currency option contracts	(651		)	—		(651		)	—
Contingent consideration	(5,453		)	—		—			(5,453		)
Total liabilities recorded at fair value	$	(41,047	)	$	—	$	(35,594	)	$	(5,453	)

During the quarter ended March 31, 2018 and year ended June 30, 2017, there were no significant transfers in or out of Level 1, Level 2 and Level 3 classifications.

The valuations of the derivatives intended to mitigate our interest rate and currency risk are determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each instrument. This analysis utilizes observable market-based inputs, including interest rate curves, interest rate volatility, or spot and forward exchange rates, and reflects the contractual terms of these instruments, including the period to maturity. We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparties' nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements.

Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to appropriately reflect both our own nonperformance risk and the respective counterparties' nonperformance risk in the fair value measurement. However, as of March 31, 2018, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 in the fair value hierarchy.

Contingent consideration obligations are measured at fair value and are based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The valuation of contingent consideration uses assumptions and estimates to forecast a range of outcomes and probabilities for the contingent consideration. Certain contingent consideration obligations are valued using a Monte Carlo simulation model. We assess these assumptions and estimates on a quarterly basis as additional data impacting the assumptions is obtained. Any changes in the fair value of contingent consideration related to updated assumptions and estimates will be recognized within general and administrative expenses in the consolidated statements of operations during the period in which the change occurs.

As part of the acquisition of WIRmachenDRUCK on February 1, 2016, we agreed to a variable contingent payment up to €40,000, previously based on the achievement of a cumulative gross profit target for calendar years 2016 and 2017. During the fourth quarter of fiscal 2017, we determined it was reasonably certain, based on recent performance, that the maximum earn-out would be achieved. Subsequently, during the first quarter of fiscal 2018, we amended the terms of this arrangement to remove the performance target and agreed to pay the maximum amount in January 2018. On January 2, 2018 we paid the maximum amount of €40,000 ($48,069 based on the exchange rate on the day of payment) and $5,951 of the amount paid is considered contingent consideration and included in the table below.

The following table represents the changes in fair value of Level 3 contingent consideration:

	Nine Months Ended March 31,
	2018 (1)			2017 (1)
Balance at June 30, 2017 and 2016, respectively	$	5,453		$	1,212
Fair value adjustment	220			2,514
Cash payments	(5,951		)	—
Foreign currency impact	278			(89		)
Balance at March 31	$	—		$	3,637

_____________________

(1) As of June 30, 2017 and March 31, 2017, contingent consideration was classified as a current liability on the consolidated balance sheets. As of June 30, 2016 the liability was classified as a long-term liability on the consolidated balance sheet.

As of March 31, 2018 and June 30, 2017, the carrying amounts of our cash and cash equivalents, accounts receivable, accounts payable, and other current liabilities approximated their estimated fair values. As of March 31, 2018 and June 30, 2017 the carrying value of our debt, excluding debt issuance costs and debt discounts, was$820,182 and $882,578, respectively, and the fair value was $777,314and $906,744, respectively. Our debt at March 31, 2018 includes variable rate debt instruments indexed to LIBOR that resets periodically and fixed rate debt instruments. The estimated fair value of our debt was determined using available market information based on recent trades or activity of debt instruments with substantially similar risks, terms and maturities, which fall within Level 2 under the fair value hierarchy. The estimated fair value of assets and liabilities disclosed above may not be representative of actual values that could have been or will be realized in the future.

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Derivative Financial Instruments

9 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Derivative Financial Instruments

We use derivative financial instruments, such as interest rate swap contracts, cross-currency swap contracts, and currency forward and option contracts, to manage interest rate and foreign currency exposures. Derivatives are recorded in the consolidated balance sheets at fair value. If the derivative is designated as a cash flow hedge or net investment hedge, then the effective portion of changes in the fair value of the derivative is recorded in accumulated other comprehensive loss and is subsequently reclassified into earnings in the period the hedged forecasted transaction affects earnings. If a derivative is deemed to be ineffective, then the ineffective portion of the change in fair value of the derivative is recognized directly in earnings. The change in the fair value of derivatives not designated as hedges is recognized directly in earnings, as a component of other (expense) income, net.

Hedges of Interest Rate Risk

We enter into interest rate swap contracts to manage variability in the amount of our known or expected cash payments related to a portion of our debt. Our objective in using interest rate swaps is to add stability to interest expense and to manage our exposure to interest rate movements. We designate our interest rate swaps as cash flow hedges. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for us making fixed-rate payments over the life of the contract agreements without exchange of the underlying notional amount. Realized gains or losses from interest rate swaps are recorded in earnings, as a component of interest expense, net. A portion of seven of our interest rate swap contracts were deemed to be ineffective during the three and nine months ended March 31, 2018 and during the three and nine months ended March 31, 2017 a portion of two of our interest rate swap contracts was deemed to be ineffective.

Amounts reported in accumulated other comprehensive loss related to interest rate swap contracts will be reclassified to interest expense as interest payments are accrued or made on our variable-rate debt. As of March 31, 2018, we estimate that $119 of income will be reclassified from accumulated other comprehensive loss to interest expense during the twelve months ending March 31, 2019. As of March 31, 2018, we had nine outstanding interest rate swap contracts indexed to one-month LIBOR.These instruments were designated as cash flow hedges of interest rate risk and have varying start dates and maturity dates through December 2025.

Interest rate swap contracts outstanding:	Notional Amounts
Contracts accruing interest as of March 31, 2018	$	65,000
Contracts with a future start date	350,000
Total	$	415,000

Hedges of Currency Risk

Cross-Currency Swap Contracts

From time to time, we execute cross-currency swap contracts designated as cash flow hedges or net investment hedges. Cross-currency swaps involve an initial receipt of the notional amount in the hedge currency in exchange for our reporting currency based on a contracted exchange rate. Subsequently, we receive fixed rate payments in our reporting currency in exchange for fixed rate payments in the hedged currency over the life of the contract. At maturity, the final exchange involves the receipt of our reporting currency in exchange for the notional amount in the hedged currency.

Cross-currency swap contracts designated as cash flow hedges are executed to mitigate our currency exposure to the interest receipts as well as the principal remeasurement and repayment associated with certain intercompany loans denominated in a currency other than our reporting currency, the U.S. Dollar.As of March 31, 2018, we had two outstanding cross-currency swap contracts designated as cash flow hedges with a total notional amount of $120,011, both maturing during June 2019. We entered into the two cross-currency swap contracts to hedge the risk of changes in one Euro denominated intercompany loan entered into with one of our consolidated subsidiaries that has the Euro as its functional currency.

Amounts reported in accumulated other comprehensive loss will be reclassified to other (expense) income, net as interest payments are accrued or paid and upon remeasuring the intercompany loan. As of March 31, 2018, we estimate that $865 of income will be reclassified from accumulated other comprehensive loss to interest expense, net during the twelve months ending March 31, 2019.

Cross-currency swap contracts designated as net investment hedges are executed to mitigate our currency exposure of net investments in subsidiaries that have reporting currencies other than the U.S. Dollar. As of March 31, 2018, we had two outstanding cross-currency swap contracts designated as net investment hedges with a total notional amount of $122,969, both maturing during April 2019. We entered into the two cross-currency swap contracts to hedge the risk of changes in the U.S. Dollar equivalent value of a portion of our net investment in a consolidated subsidiary that has the Euro as its functional currency. Amounts reported in accumulated other comprehensive loss are recognized as a component of our cumulative translation adjustment.

We did not hold any ineffective cross-currency swaps during the three and nine months ended March 31, 2018 and 2017.

Other Currency Contracts

We execute currency forward and option contracts in order to mitigate our exposure to fluctuations in various currencies against our reporting currency, the U.S. Dollar.

As of March 31, 2018, we had six currency forward contracts designated as net investment hedges with a total notional amount of $175,262, maturing during various dates through October 2022. We entered into these contracts to hedge the risk of changes in the U.S. Dollar equivalent value of a portion of our net investment in a consolidated subsidiary that has the Euro as its functional currency. Amounts reported in accumulated other comprehensive loss are recognized as a component of our cumulative translation adjustment.

We have elected to not apply hedge accounting for all other currency forward and option contracts. During the three and nine months ended March 31, 2018 and 2017, we have experienced volatility within other (expense) income, net in our consolidated statements of operations from unrealized gains and losses on the mark-to-market of outstanding currency forward and option contracts. We expect this volatility to continue in future periods for contracts for which we do not apply hedge accounting. Additionally, since our hedging objectives may be targeted at non-GAAP financial metrics that exclude non-cash items such as depreciation and amortization, we may experience increased, not decreased, volatility in our GAAP results as a result of our currency hedging program.

As of March 31, 2018, we had the following outstanding currency derivative contracts that were not designated for hedge accounting and were used to hedge fluctuations in the U.S. Dollar value of forecasted transactions denominated in Australian Dollar, British Pound, Canadian Dollar, Danish Krone, Euro, Indian Rupee,Mexican Peso, New Zealand Dollar, Norwegian Krone, and Swedish Krona:

Notional Amount	Effective Date	Maturity Date	Number of Instruments	Index
$512,301	January 2017 through March 2018	Various dates through March 2020	489	Various

Financial Instrument Presentation

The table below presents the fair value of our derivative financial instruments as well as their classification on the balance sheet as of March 31, 2018 and June 30, 2017. Our derivative asset and liability balances will fluctuate with interest rate and currency exchange rate volatility. Our derivative liabilities have increased significantly during the nine months ended March 31, 2018 mainly due to the weakening of the US dollar.

	March 31, 2018
	Asset Derivatives								Liability Derivatives
Derivatives designated as hedging instruments	Balance Sheet line item	Gross amounts of recognized assets		Gross amount offset in consolidated balance sheet			Net amount		Balance Sheet line item	Gross amounts of recognized liabilities			Gross amount offset in consolidated balance sheet		Net amount
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps	Other non-current assets	$	10,452	$	(92	)	$	10,360	Other current liabilities / other liabilities	$	—		$	—	$	—
Cross-currency swaps	Other non-current assets	—		—			—		Other liabilities	(18,897		)	—		(18,897		)
Derivatives in Net Investment Hedging Relationships
Cross-currency swaps	Other non-current assets	—		—			—		Other liabilities	(23,176		)	—		(23,176		)
Currency forward contracts	Other non-current assets	—		—			—		Other liabilities	(23,831		)	—		(23,831		)
Total derivatives designated as hedging instruments		$	10,452	$	(92	)	$	10,360		$	(65,904	)	$	—	$	(65,904	)
Derivatives not designated as hedging instruments
Currency forward contracts	Other current assets / other assets	$	26	$	—		$	26	Other current liabilities / other liabilities	$	(15,361	)	$	1,307	$	(14,054	)
Currency option contracts	Other current assets / other assets	11		—			11		Other current liabilities / other liabilities	(814		)	129		(685		)
Total derivatives not designated as hedging instruments		$	37	$	—		$	37		$	(16,175	)	$	1,436	$	(14,739	)

	June 30, 2017
	Asset Derivatives								Liability Derivatives
Derivatives designated as hedging instruments	Balance Sheet line item	Gross amounts of recognized assets		Gross amount offset in consolidated balance sheet			Net amount		Balance Sheet line item	Gross amounts of recognized liabilities			Gross amount offset in consolidated balance sheet		Net amount
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps	Other non-current assets	$	2,072	$	(355	)	$	1,717	Other current liabilities / other liabilities	$	(483	)	$	—	$	(483	)
Cross-currency swaps	Other non-current assets	—		—			—		Other liabilities	(7,640		)	—		(7,640		)
Derivatives in Net Investment Hedging Relationships
Cross-currency swaps	Other non-current assets	—		—			—		Other liabilities	(12,120		)	—		(12,120		)
Currency forward contracts	Other non-current assets	—		—			—		Other liabilities	(9,896		)	—		(9,896		)
Total derivatives designated as hedging instruments		$	2,072	$	(355	)	$	1,717		$	(30,139	)	$	—	$	(30,139	)
Derivatives not designated as hedging instruments
Currency forward contracts	Other current assets / other assets	$	—	$	—		$	—	Other current liabilities / other liabilities	$	(8,033	)	$	3,229	$	(4,804	)
Currency Option Contracts	Other current assets / other assets	—		—			—		Other current liabilities / other liabilities	(651		)	—		(651		)
Total derivatives not designated as hedging instruments		$	—	$	—		$	—		$	(8,684	)	$	3,229	$	(5,455	)

The following table presents the effect of the effective portion of our derivative financial instruments designated as hedging instruments and their classification within comprehensive income (loss) for the three and nine months ended March 31, 2018 and 2017:

Derivatives in Hedging Relationships	Amount of Gain (Loss) Recognized in Comprehensive Income (Loss) on Derivatives
	Three Months Ended March 31,						Nine Months Ended March 31,
In thousands	2018			2017			2018			2017
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps	$	6,087		$	314		$	7,330		$	3,078
Cross-currency swaps	2,321			(740		)	5,492			3,971
Derivatives in Net Investment Hedging Relationships
Cross-currency swaps	(3,873		)	(841		)	(10,307		)	3,983
Currency forward contracts	(5,576		)	(802		)	(13,935		)	137
	$	(1,041	)	$	(2,069	)	$	(11,420	)	$	11,169

The following table presents reclassifications out of accumulated other comprehensive loss for the three and nine months ended March 31, 2018 and 2017:

Details about Accumulated Other Comprehensive Loss Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) to Net (Loss) Income												Affected line item in the Statement of Operations
	Three Months Ended March 31,						Nine Months Ended March 31,
In thousands	2018			2017			2018			2017
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps	$	100		$	(61	)	$	(6	)	$	(100	)	Interest expense, net
Cross-currency swaps	(3,321		)	(1,131		)	(8,756		)	6,366			Other (expense) income, net
Total before income tax	(3,221		)	(1,192		)	(8,762		)	6,266			Income (loss) before income taxes
Income tax	805			297			2,212			(1,568		)	Income tax expense
Total	$	(2,416	)	$	(895	)	$	(6,550	)	$	4,698

The following table presents the adjustment to fair value recorded within the consolidated statements of operations for derivative instruments for which we did not elect hedge accounting, as well as the effect of the ineffective portion and de-designated derivative financial instruments that no longer qualify as hedging instruments in the period:

	Amount of Gain (Loss) Recognized in Net (Loss) Income											Location of Gain (Loss) Recognized in Income (Ineffective Portion)
	Three Months Ended March 31,						Nine Months Ended March 31,
In thousands	2018			2017			2018			2017
Derivatives not designated as hedging instruments
Currency contracts	$	(9,103	)	$	(820	)	$	(19,382	)	$	12,481	Other (expense) income, net
Interest rate swaps	1			3			279			256		Other (expense) income, net
	$	(9,102	)	$	(817	)	$	(19,103	)	$	12,737

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Accumulated Other Comprehensive Income

9 Months Ended

Mar. 31, 2018

Equity [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Loss

The following table presents a roll forward of amounts recognized in accumulated other comprehensive loss by component, net of tax of$(3,237)for the nine months ended March 31, 2018:

	Gains (losses) on cash flow hedges (1)			Gains (losses) on pension benefit obligation			Translation adjustments, net of hedges (2)			Total
Balance as of June 30, 2017	$	(2,250	)	$	(357	)	$	(110,791	)	$	(113,398	)
Other comprehensive income (loss) before reclassifications	12,822			—			24,650			37,472
Amounts reclassified from accumulated other comprehensive loss to net (loss) income	(6,550		)	—			—			(6,550		)
Net current period other comprehensive income (loss)	6,272			—			24,650			30,922
Balance as of March 31, 2018	$	4,022		$	(357	)	$	(86,141	)	$	(82,476	)

________________________

(1) Gains (losses) on cash flow hedges include our interest rates swap and cross-currency swap contracts designated in cash flow hedging relationships.

(2) As of March 31, 2018 and June 30, 2017, the translation adjustment is inclusive of the effects of our net investment hedges, of which, unrealized losses of $41,290 and $17,048, respectively, net of tax, have been included in accumulated other comprehensive loss.

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Goodwill and Acquired Intangible Assets

9 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangible Assets

Goodwill and Acquired Intangible Assets

Goodwill

The carrying amount of goodwill by reportable segment as of March 31, 2018 and June 30, 2017 is as follows:

	Vistaprint			Upload and Print		National Pen			All Other Businesses		Total
Balance as of June 30, 2017	$	147,207		$	321,805	$	34,520		$	11,431	$	514,963
Adjustments	(58		)	—		(86		)	—		(144		)
Effect of currency translation adjustments (1)	2,706			24,844		—			—		27,550
Balance as of March 31, 2018	$	149,855		$	346,649	$	34,434		$	11,431	$	542,369

_________________

(1) Relates to goodwill held by subsidiaries whose functional currency is not the U.S. Dollar.

Acquired Intangible Assets

Acquired intangible assets amortization expense for the three and nine months ended March 31, 2018 was $12,941 and $38,132,respectively, compared to $13,450 and $33,542 for the prior comparative periods, respectively. In addition, during the three and nine months ended March 31, 2017, we recognized an impairment of $3,211, related to the acquired intangible assets within the Tradeprint asset group. Refer below for additional discussion regarding the impairment.

Impairment Review

Fiscal 2017

During the third quarter of fiscal 2017, we concluded that the goodwill of our Tradeprint reporting unit, part of our Upload and Print reportable segment, was not fully recoverable as the reporting unit was forecasting lower profits than originally forecasted as of the acquisition date. This resulted in an impairment of goodwill of $6,345 and an impairment of acquired intangible assets of $3,211 during the quarter ended March 31, 2017.

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Other Balance Sheet Components

9 Months Ended

Mar. 31, 2018

Payables and Accruals [Abstract]

Accrued Expenses

Other Balance Sheet Components

Accrued expenses included the following:

	March 31, 2018		June 30, 2017
Compensation costs	$	59,908	$	54,487
Income and indirect taxes	45,691		34,469
Advertising costs	28,001		26,641
Interest payable	10,335		5,263
Production costs	9,558		7,472
Shipping costs	6,817		6,651
Sales returns	5,722		4,474
Professional fees	3,138		3,021
Purchases of property, plant and equipment	2,077		3,786
Other	39,160		29,303
Total accrued expenses	$	210,407	$	175,567

Other current liabilities included the following:

	March 31, 2018		June 30, 2017
Contingent earn-out liability (1)	$	—	$	44,049
Current portion of lease financing obligation	12,569		12,569
Short-term derivative liabilities	17,184		7,243
Current portion of capital lease obligations	11,521		11,573
Mandatorily redeemable noncontrolling interest (2)	1,144		901
Other	504		2,100
Total other current liabilities	$	42,922	$	78,435

Other liabilities included the following:

	March 31, 2018		June 30, 2017
Long-term derivative liabilities	$	64,986	$	31,936
Long-term capital lease obligations	20,458		28,306
Mandatorily redeemable noncontrolling interest (2)	2,757		2,456
Other (3)	32,409		31,985
Total other liabilities	$	120,610	$	94,683

_______________________

(1) On January 2, 2018, we paid the contingent earn-out liability in full, refer to the summary below for additional details.

(2) Relates to the mandatorily redeemable noncontrolling interest of Printi LLC. Refer to Note 11 for additional details.

(3) As of March 31, 2018 and June 30, 2017, other liabilities includes $9,773 and $8,173, respectively, related to share-based compensation awards associated with our investment in Printi LLC. Refer to Note 11 for additional details.

Contingent earn-out liability

Under the original terms of the WIRmachenDRUCK earn-out arrangement, a portion of the earn-out attributed to the minority selling shareholders was included as a component of purchase consideration as of the acquisition date, with any subsequent changes to fair value recognized within general and administrative expense. This earn-out was previously calculated on a sliding scale, based on the achievement of cumulative gross profit against a predetermined target. During the fourth quarter of fiscal 2017, we determined it was reasonably certain, that the maximum earn-out would be achieved and we paid the maximum amount on January 2, 2018. Refer to Note 3 of the consolidated financial statements for additional details of this payment.

The liability represented the present value of the agreed payment amount as of the respective date. We recognized $1,774 of expense during the nine months ended March 31, 2018, and $4,598 and $27,364 of expense during the three and nine months ended March 31, 2017, respectively, as part of general and administrative expense. We recognized no expense during the three months ended March 31, 2018.

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Debt

9 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Long-Term Debt

Debt

	March 31, 2018			June 30, 2017
Senior secured credit facility	$	537,276		$	600,037
7.0% Senior unsecured notes due 2022	275,000			275,000
Other	7,906			7,541
Debt issuance costs and debt discounts (1)	(7,567		)	(5,922		)
Total debt outstanding, net	812,615			876,656
Less short-term debt (2)	26,214			28,926
Long-term debt	$	786,401		$	847,730

_____________________

(1) During the nine months ended March 31, 2018, we capitalized $3,251 in debt issuance costs, which related to the amendment and restatement to our senior secured credit facility. Refer below for additional details relating to the amendment.

(2) Balances as of March 31, 2018 and June 30, 2017 are inclusive of short-term debt issuance costs and debt discounts of $1,846 and $1,693, respectively.

Our Debt

Our various debt arrangements described below contain customary representations, warranties and events of default. As of March 31, 2018, we were in compliance with all financial and other covenants related to our debt.

Senior Secured Credit Facility

On July 13, 2017, we entered into an amendment and restatement agreement for our senior secured credit facility resulting in an increase of loan commitments under the credit agreement to $1,045,000 in the aggregate. The amendment also extended the tenor of our borrowings to a maturity date of July 13, 2022. As of March 31, 2018, we have a committed credit facility of $1,033,750 as follows:

• Revolving loans of $745,000 with a maturity date of July 13, 2022

• Term loan of $288,750 amortizing over the loan period, with a final maturity date of July 13, 2022.

Under the terms of our credit agreement, borrowings bear interest at a variable rate of interest based on LIBOR plus 1.50% to 2.25% depending on our leverage ratio, which is the ratio of our consolidated total indebtedness to our consolidated EBITDA, as defined by the credit agreement. As of March 31, 2018, the weighted-average interest rate on outstanding borrowings was 3.56%, inclusive of interest rate swap rates. We are also required to pay a commitment fee on unused balances of 0.225% to 0.400% depending on our leverage ratio. We have pledged the assets and/or share capital of several of our subsidiaries as collateral for our outstanding debt as of March 31, 2018.

Indenture and Senior Unsecured Notes due 2022

On March 24, 2015, we completed a private placement of $275,000 in aggregate principal amount of 7.0% senior unsecured notes due 2022 (the “Notes”). We issued the Notes pursuant to a senior notes indenture dated as of March 24, 2015 among Cimpress N.V., our subsidiary guarantors, and MUFG Union Bank, N.A., as trustee (the "Indenture"). We used the proceeds from the Notes to pay outstanding indebtedness under our unsecured line of credit and our senior secured credit facility and for general corporate purposes.

The Notes bear interest at a rate of 7.0% per annum and mature on April 1, 2022. Interest on the Notes is payable semi-annually on April 1 and October 1 of each year, commencing on October 1, 2015, to the holders of record of the Notes at the close of business on March 15 and September 15, respectively, preceding such interest payment date.

The Notes are senior unsecured obligations and rank equally in right of payment to all our existing and future senior unsecured debt and senior in right of payment to all of our existing and future subordinated debt. The Notes are effectively subordinated to any of our existing and future secured debt to the extent of the value of the assets securing such debt. Subject to certain exceptions, each of our existing and future subsidiaries that is a borrower under or guarantees our senior secured credit facilities will guarantee the Notes.

The Indenture contains various covenants, including covenants that, subject to certain exceptions, limit our and our restricted subsidiaries’ ability to incur and/or guarantee additional debt; pay dividends, repurchase shares or make certain other restricted payments; enter into agreements limiting dividends and certain other restricted payments; prepay, redeem or repurchase subordinated debt; grant liens on assets; enter into sale and leaseback transactions; merge, consolidate or transfer or dispose of substantially all of our consolidated assets; sell, transfer or otherwise dispose of property and assets; and engage in transactions with affiliates.

We had the right to redeem, at any time prior to April 1, 2018, some or all of the Notes at a redemption price equal to 100% of the principal amount redeemed, plus a make-whole amount as set forth in the Indenture, plus, in each case, accrued and unpaid interest to, but not including, the redemption date. In addition, we had the right to redeem, at any time prior to April 1, 2018, up to 35% of the aggregate outstanding principal amount of the Notes at a redemption price equal to 107% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the redemption date, with the net proceeds of certain equity offerings by Cimpress. To date we have not exercised our redemption right; however if in the future we choose to exercise we will redeem some or all of the Notes at the redemption prices specified in the Indenture, plus accrued and unpaid interest to, but not including, the redemption date.

Other debt

Other debt consists primarily of term loans acquired through our various acquisitions. As of March 31, 2018 and June 30, 2017 we had$7,906 and $7,541, respectively, outstanding for those obligations that are payable through September 2024.

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Income Taxes

9 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Our income tax expensewas$4,019 and $19,657 for the three and nine months ended March 31, 2018, respectively, as compared to income tax benefits of $17,431 and $7,644 for the prior comparative periods. The increase in income tax expense is primarily attributable to pre-tax income for the three and nine months ended March 31, 2018 as compared to pre-tax losses in the comparable periods. Additionally, we recognized tax expense of $4,742 related to the impacts of U.S. tax reform recognized in the nine months ended March 31, 2018. We recognize excess tax benefits associated with the vesting or exercise of share based compensation awards as a discrete tax item. During the three and nine months ended March 31, 2018, we recognized excess tax benefits from share based compensation of $1,329 and $2,802, respectively, as compared to $45 and $4,659 for the comparable prior periods. Excluding the effect of these discrete tax items, we are forecasting a more favorable consolidated annual effective tax rate for fiscal 2018 as compared to fiscal 2017 primarily due to higher forecasted full year pre-tax income as well as a more favorable geographical mix of consolidated earnings. In addition, our effective tax rate is negatively impacted by losses in certain jurisdictions where we are unable to recognize a full tax benefit in the current period.

On December 22, 2017, the Tax Cuts and Jobs Act ("The Act") was signed into law, resulting in significant changes to U.S. tax law for corporations. Our tax balances were adjusted during the quarter ended December 31, 2017 based upon our interpretation of The Act, although the final impact on our tax balances may change due to the issuance of additional guidance, changes in our interpretation of The Act, changes in assumptions made by Cimpress, and actions Cimpress may take as a result of The Act. There were no material changes to our tax balances for the three months ended March 31, 2018 as a result of The Act. We will continue to review and assess the potential impact of any new information on our financial statement positions.

On October 1, 2013, we made changes to our corporate entity operating structure, including transferring our intellectual property among certain of our subsidiaries, primarily to align our corporate entities with our evolving operations and business model. Our subsidiary based in Switzerland was the recipient of the intellectual property. In accordance with Swiss tax law, we are entitled to amortize the fair market value of the intellectual property received at the date of transfer over five years for tax purposes. As a result of this amortization, we are expecting a loss for Swiss tax purposes during fiscal 2018.

As of March 31, 2018, we had a liability for unrecognized tax benefits included in the balance sheet of $4,872, including accrued interest and penalties of $355. We recognize interest and, if applicable, penalties related to unrecognized tax benefits in the provision for income taxes. If recognized, the entire liability for unrecognized tax benefits would reduce our income tax expense. It is reasonably possible that a reduction in unrecognized tax benefits may occur within the next twelve months in the range of $600 to $800 related to the lapse of applicable statutes of limitations. We believe we have appropriately provided for all tax uncertainties.

We conduct business in a number of tax jurisdictions and, as such, are required to file income tax returns in multiple jurisdictions globally. The years 2015 through 2017 remain open for examination by the United States Internal Revenue Service (“IRS”) and the years 2012 through 2017 remain open for examination in the various states and non-US tax jurisdictions in which we file tax returns. We believe that our income tax reserves are adequately maintained taking into consideration both the technical merits of our tax return positions and ongoing developments in our income tax audits. However, the final determination of our tax return positions, if audited, is uncertain, and there is a possibility that final resolution of these matters could have a material impact on our results of operations or cash flows.

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Noncontrolling interest

9 Months Ended

Mar. 31, 2018

Noncontrolling Interest [Abstract]

Noncontrolling Interest Disclosure [Text Block]

Noncontrolling Interests

In certain of our strategic investments we own a controlling equity stake, but a third party owns a minority portion of the equity. The balance sheet and operating activity of these entities are included in our consolidated financial statements and we adjust the net income in our consolidated statement of operations to exclude the noncontrolling interests' proportionate share of results. We present the proportionate share of equity attributable to the redeemable noncontrolling interests as temporary equity within our consolidated balance sheet and the proportionate share of noncontrolling interests not subject to a redemption provision that is outside of our control as equity.

Redeemable noncontrolling interests

On April 15, 2015, we acquired 70% of the outstanding shares of Exagroup SAS. The remaining 30% is considered a redeemable noncontrolling equity interest, as it is redeemable in the future and not solely within our control. The Exagroup noncontrolling interest, redeemable at a fixed amount of €39,000, was recorded at its fair value as of the acquisition date and will be adjusted to its redemption value on a periodic basis, if that amount exceeds its carrying value. As of March 31, 2018, the redemption value was less than the carrying value, and therefore no adjustment was required.

On August 23, 2017, we sold approximately 12% of the outstanding shares of our WIRmachenDRUCK subsidiary for a total of €30,000 ($35,390 based on the exchange rate on the date we received the proceeds). The minority equity interest is considered a redeemable noncontrolling interest, as it is redeemable for cash based on future financial results through put and call rights and not solely within our control. The noncontrolling interest was recorded at its fair value as of the sale date and will be adjusted to its redemption value on a periodic basis, with an offset to retained earnings, if that amount exceeds its carrying value. If the formulaic redemption value exceeds the fair value of the noncontrolling interest, then the accretion to redemption value will be offset to the net (income) loss attributable to noncontrolling interest in our consolidated statement of operations. As of March 31, 2018, the redemption value was less than the carrying value, and therefore no adjustment was required.

The following table presents the reconciliation of changes in our noncontrolling interests:

	Redeemable noncontrolling interests		Noncontrolling interest
Balance as of June 30, 2017	$	45,412	$	213
Net income attributable to noncontrolling interest	1,320		74
Proceeds from sale of noncontrolling interest	35,390		—
Foreign currency translation	5,683		—
Balance as of March 31, 2018	$	87,805	$	287

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Variable Interest Entities

9 Months Ended

Mar. 31, 2018

Variable Interest Entity [Line Items]

Variable Interest Entity Disclosure [Text Block]

Variable Interest Entity ("VIE")

On August 7, 2014, we made a capital investment in Printi LLC, which operates in Brazil. This investment provided us access to a new market and the opportunity to drive longer-term growth in Brazil and other geographies as Printi expands internationally in the future. As of March 31, 2018, we have a 49.99% equity interest in Printi. Based upon the level of equity investment at risk, Printi is considered a variable interest entity. The shareholders of Printi share profits and voting control on a pro-rata basis. While we do not manage the day to day operations of Printi, we do have the unilateral ability to exercise participating voting rights for specific transactions, and as such no one shareholder is considered to be the primary beneficiary. However, certain significant shareholders cannot transfer their equity interests without our approval and as a result are considered de facto agents on our behalf in accordance with ASC 810-10-25-43.

In aggregating our rights, as well as those of our de facto agents, the group as a whole has the power to direct the activities that most significantly impact the entity's economic performance, the obligation to absorb losses and the right to receive benefits from the entity. In situations where a de facto agency relationship is present, one party is required to be identified as the primary beneficiary, and the evaluation requires significant judgment. The factors considered include the presence of a principal/agent relationship, the relationship and significance of activities to the reporting entity, the variability associated with the VIE's anticipated economics and the design of the VIE. The analysis is qualitative in nature and is based on weighting the relative importance of each of the factors in relation to the specifics of the VIE arrangement. Upon our investment we performed an analysis and concluded that we are the party that is most closely associated with Printi, as we are most exposed to the variability of the economics and therefore considered the primary beneficiary.

We will purchase an additional 3.7% non-voting economic interest during the fourth quarter of fiscal 2018. In addition, we will acquire the remaining equity interest in Printi through a reciprocal put and call structure, exercisable from March 31, 2021 through a mandatory redemption date of July 31, 2023. As the remaining equity interests are mandatorily redeemable by all parties no later than a specified future date, the noncontrolling interest is within the scope of ASC 480 and is required to be presented as a liability on our consolidated balance sheet. We adjust the liability to its estimated redemption value each reporting period and recognize any changes within interest expense, net in our consolidated statement of operations.

We also have liability-based awards for Printi restricted stock held by Printi employees that are fully vested and marked to fair value each reporting period until cash settlement. As of March 31, 2018, through the use of an option pricing model we estimate the current fair value of the restricted stock to be $9,773 and we have recognized $1,047 in general and administrative expense for the nine months ended March 31, 2018, respectively, compared to $374 and $1,158 in the three and nine months ended March 31, 2017.

We also have an arrangement to lend two Printi equity holders up to $24,000 that is payable on the date the put or call option is exercised, which will occur no later than July 31, 2023. As of March 31, 2018, the long-term loan receivable, including accrued interest, is $17,251 and classified within other assets in our consolidated balance sheets. We did not have a long-term loan receivable as of June 30, 2017. The loans carry 8.5% annual interest, and are not contingent upon continued employment. We expect that the loan proceeds will be used to offset our purchase of the remaining noncontrolling interest in the future.

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Segment Information

9 Months Ended

Mar. 31, 2018

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, 2018 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 the operations of our Most of World and Corporate Solutions businesses. Most of World consists of our businesses in Brazil, China, India and Japan. In Japan and India, we primarily operate under close derivatives of the Vistaprint business model and technology, albeit with decentralized, locally managed cross-functional operations in each country, and with product, content and service offerings which we tailor to the Japanese and Indian markets. Our Corporate Solutions business serves medium-sized businesses and larger corporations, as well as our legacy business with retail partners and franchise businesses, primarily through the "Vistaprint Corporate" brand. Our All Other Businesses segment also includes Albumprinter results through the divestiture date of August 31, 2017.

Central and corporate costs consists 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 Supervisory Board, CEO, and the team members necessary for managing corporate activities, such as treasury, tax, capital allocation, financial consolidation, and legal. These costs also include certain unallocated share-based compensation costs.

During the first quarter of fiscal 2018, we began presenting inter-segment fulfillment activity as revenue for the fulfilling business unit for purposes of measuring and reporting our segment financial performance. Any historical inter-segment fulfillment transactions were previously recognized as cost relief for the fulfilling business unit in our presentation to the CODM. We now recognize these transactions as inter-segment revenue for presentation to the CODM; for example, a third-party customer order received by our Corporate Solutions business that is fulfilled at one of our Vistaprint production facilities is recognized as inter-segment revenue for our Vistaprint business based on pricing and terms agreed upon between segment management. Inter-segment revenues are recognized only for transactions between our reportable segments and do not include any transactions between businesses within a reportable segment, which are eliminated within each reportable segment. Intercompany revenues are eliminated in our consolidated results.

As part of these changes, we also recast historical segment results to ensure the consistent application of our current inter-segment revenue presentation. For the three and nine months ended March 31, 2017, we increased revenue for our Vistaprint business by $1,550 and $4,069, with a corresponding increase to inter-segment eliminations. We also recast historical segment profitability for the allocation of certain IT costs, which previously burdened our Vistaprint business, but have now been allocated to each of our businesses in fiscal 2018. For the three and nine months ended March 31, 2017, the cost allocation change resulted in an increase to Vistaprint segment profit by $624 and $1,871, respectively, with a corresponding decrease to segment profit for Upload and Print of $161 and $483, respectively, and All Other Businesses of $140 and $420, respectively, and an increase to our Central and corporate cost center of $323 and $968, respectively.

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.

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 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 our Most of World and Corporate Solutions 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, segment profit (loss), total income from operations and total income before income taxes.

	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
Revenue:
Vistaprint (1)	$	357,606		$	322,804		$	1,105,557		$	990,160
Upload and Print (2)	183,768			142,476			536,685			426,821
National Pen (3)	81,545			58,828			267,360			58,828
All Other Businesses (4)	18,865			28,027			67,913			99,410
Total segment revenue	641,784			552,135			1,977,515			1,575,219
Inter-segment eliminations	(5,715		)	(1,550		)	(16,108		)	(4,070		)
Total consolidated revenue	$	636,069		$	550,585		$	1,961,407		$	1,571,149

_____________________

(1) Vistaprint segment revenues include inter-segment revenue of $2,747 and $7,753 for the three and nine months ended March 31, 2018, respectively, and $1,550 and $4,069 for the prior comparative periods, respectively.

(2) Upload and Print segment revenues include inter-segment revenue of $329 and $1,137for the three and nine months ended March 31, 2018, respectively. No inter-segment revenue was recognized in the prior comparable periods.

(3) National Pen segment revenues include inter-segment revenue of $805 and $2,275for the three and nine months ended March 31, 2018, respectively. No inter-segment revenue was recognized in the prior comparable periods.

(4) All Other Businesses segment revenues include inter-segment revenue of $1,834 and $4,943 for the three and nine months ended March 31, 2018, respectively. No inter-segment revenue was recognized in the prior comparable periods.

	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
Segment profit (loss):
Vistaprint	$	57,661		$	37,627		$	187,605		$	129,915
Upload and Print	17,367			12,983			54,605			43,232
National Pen	355			(3,226		)	19,185			(3,226		)
All Other Businesses	(9,342		)	(10,085		)	(25,459		)	(21,944		)
Total segment profit	66,041			37,299			235,936			147,977
Central and corporate costs	(35,891		)	(28,028		)	(97,558		)	(87,442		)
Acquisition-related amortization and depreciation	(13,030		)	(13,508		)	(38,330		)	(33,740		)
Earn-out related charges (1)	—			(4,882		)	(2,391		)	(28,139		)
Share-based compensation related to investment consideration	—			(375		)	(1,047		)	(5,079		)
Certain impairments (2)	—			(9,556		)	—			(9,556		)
Restructuring-related charges	(2,331		)	(24,790		)	(14,686		)	(25,890		)
Interest expense for Waltham, MA lease	1,838			1,897			5,645			5,823
Gain on the purchase or sale of subsidiaries (3)	—			—			48,380			—
Total income (loss) from operations	16,627			(41,943		)	135,949			(36,046		)
Other (expense) income, net	(1,558		)	(6,582		)	(25,602		)	21,835
Interest expense, net	(12,652		)	(11,584		)	(38,263		)	(31,119		)
Income (loss) before income taxes	$	2,417		$	(60,109	)	$	72,084		$	(45,330	)

___________________

(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 for certain 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."

(3) Includes the impact of the gain on the sale of Albumprinter, as well as a bargain purchase gain as defined by ASC 805-30 for an acquisition in which the identifiable assets acquired and liabilities assumed are greater than the consideration transferred, 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,
	2018		2017		2018		2017
Depreciation and amortization:
Vistaprint	$	16,460	$	16,885	$	48,943	$	47,784
Upload and Print	15,701		14,151		45,426		42,182
National Pen	5,372		5,277		15,742		5,277
All Other Businesses	2,538		3,698		6,981		11,033
Central and corporate costs	3,366		3,391		10,028		9,508
Total depreciation and amortization	$	43,437	$	43,402	$	127,120	$	115,784

	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
Purchases of property, plant and equipment:
Vistaprint	$	4,843	$	12,046	$	29,342	$	31,590
Upload and Print	2,279		2,894		11,270		10,878
National Pen	1,183		1,013		4,891		1,013
All Other Businesses	252		4,134		1,231		10,647
Central and corporate costs	210		569		707		2,788
Total purchases of property, plant and equipment	$	8,767	$	20,656	$	47,441	$	56,916

	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
Capitalization of software and website development costs:
Vistaprint	$	7,186	$	6,429	$	18,266	$	15,091
Upload and Print	1,149		514		2,939		1,627
National Pen	302		—		669		—
All Other Businesses	443		1,063		1,811		2,968
Central and corporate costs	2,282		1,562		5,791		8,992
Total capitalization of software and website development costs	$	11,362	$	9,568	$	29,476	$	28,678

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

	March 31, 2018		June 30, 2017
Long-lived assets (1):
Netherlands	$	106,816	$	83,223
Canada	83,878		85,926
Switzerland	52,811		49,017
Italy	45,121		44,423
United States	41,241		64,034
Australia	23,288		22,961
France	22,030		22,794
Jamaica	21,548		21,492
Japan	20,913		20,686
Other	71,786		64,377
Total	$	489,432	$	478,933

___________________

(1) Excludes goodwill of $542,369 and $514,963, intangible assets, net of $250,593 and $275,924, the Waltham lease asset of $112,956 and $116,045, and deferred tax assets of $66,753 and $48,004 as of March 31, 2018 and June 30, 2017, respectively.

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Commitments and Contingencies

9 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Lease Commitments

We have commitments under operating leases for our facilities that expire on various dates through 2026, including the Waltham lease arrangement discussed in Note 2. Total lease expense, net of sublease income, for the three and nine months ended March 31, 2018 was $4,340 and $10,527, respectively and $2,860 and $9,152 for the three and nine months ended March 31, 2017, respectively.

We lease certain machinery and plant equipment under both capital and operating lease agreements that expire at various dates through 2027. The aggregate carrying value of the leased buildings and equipment under capital leases included in property, plant and equipment, net in our consolidated balance sheet at March 31, 2018, is $35,253, net of accumulated depreciation of$36,022; the present value of lease installments not yet due included in other current liabilities and other liabilities in our consolidated balance sheet at March 31, 2018 amounts to $31,979.

Purchase Obligations

At March 31, 2018, we had unrecorded commitments under contract of $55,245 including commitments for third-party web services of $21,000. In addition, we had purchase commitments for production and computer equipment purchases of approximately $7,571, inventory purchase commitments of $1,984, commitments for advertising campaigns of $2,698, professional and consulting fees of $2,680, and other unrecorded purchase commitments of $19,312.

Other Obligations

We have an outstanding installment obligation of $2,806related to the fiscal 2012 intra-entity transfer of the intellectual property of our subsidiary Webs, Inc., which results in tax being paid over a 7.5 year term and has been classified as a deferred tax liability in our consolidated balance sheet as of March 31, 2018. In addition, we have deferred payments related to our other acquisitions of $3,864 in aggregate.

Legal Proceedings

We are not currently party to any material legal proceedings. Although we cannot predict with certainty the results of litigation and claims to which we may be subject from time to time, we do not expect the resolution of any of our current matters to have a material adverse impact on our consolidated results of operations, cash flows or financial position. In all cases, at each reporting period, we evaluate whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. We expense the costs relating to our legal proceedings as those costs are incurred.

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Restructuring Charges

9 Months Ended

Mar. 31, 2018

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Restructuring Charges

Restructuring costs include one-time employee termination benefits, acceleration of share-based compensation, and other related costs including third-party professional and outplacement services. During the three months ended March 31, 2018, we recognized restructuring charges of $2,331, which included $1,898 of expense related to additional rationalizations within the central and corporate group, which have resulted from changes in our organizational structure subsequent to our decentralization initiative. We also recognized $327 related to our second quarter Vistaprint reorganization and $106 related to our January 2017 restructuring initiative.

During the nine months ended March 31, 2018, we recognized restructuring charges of $14,686, which included $11,782 related to our Vistaprint reorganization for reductions in headcount and other operating costs. These changes simplified operations and more closely aligned functions to increase the speed of execution. We also recognized $1,898 of restructuring charges within the central and corporate group, as well as $819 of expense for the first quarter initiative within our All Other Businesses reportable segment. During the nine months ended March 31, 2018, we recognized changes in estimates of $187 from our January 2017 restructuring initiative.

During three and nine months ended March 31, 2017, we recognized $24,790 and $25,890 of restructuring charges, respectively, related to our January 2017 restructuring initiative, which has been completed.

The following table summarizes the restructuring activity during the nine months ended March 31, 2018:

	Severance and Related Benefits			Other Restructuring Costs			Total
Accrued restructuring liability as of June 30, 2017 (1)	$	4,602		$	208		$	4,810
Restructuring Charges (2)	14,595			91			14,686
Cash payments	(14,890		)	(216		)	(15,106		)
Non-cash charges (3)	(1,317		)	—			(1,317		)
Accrued restructuring liability as of March 31, 2018	$	2,990		$	83		$	3,073

_____________________

(1) Accrued restructuring liability as of June 30, 2017 relates to our restructuring initiative announced in January 2017 and all remaining obligations have been paid as of March 31, 2018.

(2) We do not expect any material charges to be incurred in future periods related to each of these initiatives.

(3) Non-cash charges include acceleration of share-based compensation expenses.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and, accordingly, do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting primarily of normal recurring accruals, considered necessary for fair presentation of the results of operations for the interim periods reported and of our financial condition as of the date of the interim balance sheet have been included.

The consolidated financial statements include the accounts of Cimpress N.V., its wholly owned subsidiaries, entities in which we maintain a controlling financial interest, and those entities in which we have a variable interest and are the primary beneficiary. Intercompany balances and transactions have been eliminated.

Operating results for the three and nine months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending June 30, 2018 or for any other period. The consolidated balance sheet at June 30, 2017 has been derived from our audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended June 30, 2017 included in our Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (the “SEC”).

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We believe our most significant estimates are associated with the ongoing evaluation of the recoverability of our long-lived assets and goodwill, estimated useful lives of assets, share-based compensation, accounting for business combinations, and income taxes and related valuation allowances, among others. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results could differ from those estimates.

Share-Based Compensation

Share-based compensation

Total share-based compensation costs were$13,492 and $33,718 for the three and nine months ended March 31, 2018, respectively, and $12,797 and $35,645 for the three and nine months ended March 31, 2017, respectively.

During the first quarter of fiscal 2018, we issued supplemental performance share unit awards to certain members of management. In addition to a service vesting and market condition (based on the three year moving average of the Cimpress share price) contained in our standard performance share units, these supplemental awards also contain a multi-year financial performance condition. The evaluation of achievement of the performance condition is at the discretion of the Compensation Committee and, therefore, the awards are subject to mark-to-market accounting throughout the three year performance vesting period. The compensation expense for these awards is estimated at fair value using a Monte Carlo simulation valuation model and compensation costs are recorded only if it is probable that the performance condition will be achieved. We continue to conclude that the performance condition is probable of achievement and for the three and nine months ended March 31, 2018, we recognized $5,615 and $9,925 of share-based compensation expense, respectively. We will continue to reassess the probability each reporting period and if we determine the awards are not probable at some point during the performance vesting period we would reverse any expense recognized to date.

Gain on sale of subsidiary [Policy Text Block]

Sale of Albumprinter

On August 31, 2017 we sold our Albumprinter business, including FotoKnudsen AS, for a total of €78,382 ($93,071 based on the exchange rate as of the date of sale) in cash, net of transaction costs and cash divested (after $11,874 in pre-closing dividends). As a result of the sale, we recognized a gain of $47,545, net of transaction costs, within our consolidated statement of operations for the nine months ended March 31, 2018.

The transaction did not qualify for discontinued operations presentation, and as of June 30, 2017, the Albumprinter business assets and liabilities were presented as held-for-sale in our consolidated balance sheet. In connection with the divestiture, we entered into an agreement with Albumprinter under which Albumprinter will continue to fulfill photo book orders for our Vistaprint business. Additionally, we agreed to provide Albumprinter with certain transitional support services for a period of up to one year from the date of the sale.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Translation

Our non-U.S. dollar functional currency subsidiaries translate their assets and liabilities denominated in their functional currency to U.S. dollars at current rates of exchange in effect at the balance sheet date, and revenues and expenses are translated at average rates prevailing throughout the period. The resulting gains and losses from translation are included as a component of accumulated other comprehensive loss. Transaction gains and losses and remeasurement of assets and liabilities denominated in currencies other than an entity’s functional currency are included in other (expense) income, net in our consolidated statements of operations.

Other Income (expense), net [Policy Text Block]

Other (expense) income, net

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

	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
(Losses) gains on derivatives not designated as hedging instruments (1)	$	(9,102	)	$	(817	)	$	(19,103	)	$	12,737
Currency-related gains (losses), net (2)	7,519			(6,304		)	(7,133		)	5,719
Other gains (3)	25			539			634			3,379
Total other (expense) income, net	$	(1,558	)	$	(6,582	)	$	(25,602	)	$	21,835

_____________________

(1) Primarily relates to both realized and unrealized (losses) gains on derivative currency forward and option contracts not designated as hedging instruments.

(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 gains (losses), net for the three and nine months ended March 31, 2018 and 2017 are primarily driven by this intercompany activity. In addition, we have certain cross-currency swaps designated as cash flow hedges, which hedge the remeasurement of certain intercompany loans, both presented in the same component above. Unrealized losses related to cross-currency swaps were $3,582and $9,708for the three and nine months ended March 31, 2018, respectively, and unrealized losses of $1,709 and gains of $4,684 for the three and nine months ended March 31, 2017, respectively.

(3) During the nine months ended March 31, 2017, we recognized a gain of $2,268 related to the sale of Plaza Create Co. Ltd. available for sale securities.

Net Income Per Share

Net (Loss) Income Per Share Attributable to Cimpress N.V.

Basic net (loss) income per share attributable to Cimpress N.V. is computed by dividing net (loss) income attributable to Cimpress N.V. by the weighted-average number of ordinary shares outstanding for the respective period. Diluted net (loss) income per share attributable to Cimpress N.V. gives effect to all potentially dilutive securities, including share options, restricted share units (“RSUs”), restricted share awards ("RSAs") and performance share units ("PSUs"), if the effect of the securities is dilutive using the treasury stock method. Awards with performance or market conditions are included using the treasury stock method only if the conditions would have been met as of the end of the reporting period and their effect is dilutive.

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,
	2018	2017	2018	2017
Weighted average shares outstanding, basic	30,724,018	31,103,388	30,992,066	31,323,451
Weighted average shares issuable upon exercise/vesting of outstanding share options/RSUs/RSAs (1)	—	—	1,284,454	—
Shares used in computing diluted net (loss) income per share attributable to Cimpress N.V.	30,724,018	31,103,388	32,276,520	31,323,451
Weighted average anti-dilutive shares excluded from diluted net (loss) income per share attributable to Cimpress N.V.	1,448,530	1,262,902	3,054	1,379,481

Waltham and Lexington Lease Arrangements Disclosure [Text Block]

Waltham Lease Arrangement

In July 2013, we executed a lease agreement to move our Lexington, Massachusetts, USA operations to a then yet to be constructed facility in Waltham, Massachusetts, USA. During the first quarter of fiscal 2016, the building was completed and we commenced lease payments in September 2015 and will make lease payments through September 2026.

For accounting purposes, we were deemed to be the owner of the Waltham building during the construction period, and accordingly we recorded the construction project costs incurred by the landlord as an asset with a corresponding financing obligation on our balance sheet. We evaluated the Waltham lease in the first quarter of fiscal 2016 and determined that the transaction did not meet the criteria for "sale-leaseback" treatment due to our planned subleasing activity over the term of the lease. Accordingly, we began depreciating the asset and incurring interest expense related to the financing obligation recorded on our consolidated balance sheet. We bifurcate the lease payments pursuant to the Waltham lease into (i) a portion that is allocated to the building and (ii) a portion that is allocated to the land on which the building was constructed. The portion of the lease obligations allocated to the land is treated as an operating lease that commenced in fiscal 2014.

Property, plant and equipment, net, included $112,956 and $116,045 as of March 31, 2018 and June 30, 2017, respectively, related to the building. The financing lease obligation and deferred rent credit related to the building on our consolidated balance sheets was $116,307 and $119,176 as of March 31, 2018 and June 30, 2017, respectively.

Treasury Shares Accounting Method [Policy Text Block]

Treasury Shares

Treasury shares are accounted for using the cost method and are included as a component of shareholders' equity. During the nine months ended March 31, 2018 and 2017, we repurchased 895,377 and 593,763, respectively, of our ordinary shares for a total cost of $94,710 and $50,008, respectively, inclusive of transaction costs, in connection with our publicly announced share repurchase programs.

Recently Issued or Adopted Accounting Pronouncements

Recently Issued or Adopted Accounting Pronouncements

New Accounting Standards Adopted

In October 2016, the FASB issued Accounting Standards Update No. 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory" (ASU 2016-16), which requires the recognition for income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. We elected to early adopt the new standard during the first quarter of fiscal 2018, and recognized a reduction to prepaid and other current assets of $24,573, an increase in deferred tax assets of $18,710 and a cumulative-effect adjustment to retained earnings of $5,863. If we had not early adopted, the forecasted fiscal 2018 tax expense would be lower by $9,787.

Issued Accounting Standards to be Adopted

In August 2017, the FASB issued Accounting Standards Update No. 2017-12, "Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (Topic 815)," (ASU 2017-12), which better aligns a company’s financial reporting for hedging activities with the economic objectives of those activities. The amendment is effective for us on July 1, 2019 and permits early adoption, including adoption in an interim period. The standard requires a modified retrospective transition approach, in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. We do not expect this standard to have material impact on our consolidated financial statements.

In May 2017, the FASB issued Accounting Standards Update No. 2017-09, "Compensation - Stock Compensation (Topic 718)," (ASU 2017-09), which clarifies the application of Topic 718 when accounting for changes in the terms and conditions of a share-based payment award. The new standard requires changes to the terms or conditions of a share-based payment award to be accounted for under modification accounting unless there is no change to the fair value, vesting conditions and classification of the award after modification. The amendment is effective for us on July 1, 2018 and permits early adoption. The amendment is to be applied prospectively, and we are currently evaluating the impact on our financial statements.

In November 2016, the FASB issued Accounting Standards Update No. 2016-18, "Statement of Cash Flows (Topic 230) Restricted Cash" (ASU 2016-18), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendment is effective for us on July 1, 2018 and permits early adoption. This amendment will affect the presentation of our statement of cash flows once adopted, and we do not expect it to have material impact on our consolidated financial statements.

In March 2016, the FASB issued Accounting Standards Update No. 2016-04, "Liabilities - Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products" (ASU 2016-04), which requires an entity to recognize breakage for a liability resulting from the sale of a prepaid stored-value product in proportion to the pattern of rights expected to be exercised by the product holder only to the extent that it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. The new standard is effective for us on July 1, 2018. The standard permits early adoption and should be applied either retrospectively to each period presented or by means of a cumulative adjustment to retained earnings as of the beginning of the fiscal year adopted. We do not expect the effect of ASU 2016-04 to have a material impact on our consolidated financial statements.

In March 2016, the FASB issued Accounting Standards Update No. 2016-02, "Leases (Topic 842)" (ASU 2016-02), which requires the recognition of lease assets and lease liabilities by lessees for those leases currently classified as operating leases. The standard also retains a distinction between finance leases and operating leases. The new standard is effective for us on July 1, 2019 and we expect to adopt the new standard using the modified retrospective approach. We also plan to use the transition relief package, in which we will not reassess the classification of our existing leases, whether any expired or existing contracts contain leases and if our existing leases have any initial direct costs. We are currently evaluating the requirements of the standard and we have not yet determined the impact of adoption on our consolidated financial statements.

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers" (ASU 2014-09), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This guidance will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for fiscal years beginning after December 15, 2017, which would result in an effective date for us of July 1, 2018. The standard permits the use of either the retrospective or modified retrospective method. We will adopt the new standard in the first quarter of fiscal 2019, and we will apply the modified retrospective approach.

We have substantially completed our impact assessment of the new standard, which was performed on a business unit by business unit basis through a review of contract terms and material revenue streams. We have identified an impact related to direct-response advertising costs, which are costs currently capitalized and expensed based on the guidance outlined in ASC 340. The guidance included in ASC 340 has been eliminated, and under the new revenue standard these costs will be expensed as incurred because they do not meet the requirements for capitalization since they are not direct and incremental to obtaining a contract. We expect this change to impact the timing for a portion of advertising expenses within our National Pen business, but we do not expect it to have a material impact on our consolidated results. We have also identified an impact related to customer loyalty programs that are offered by several of our businesses. Under the new revenue standard, the rewards associated with these programs will be recognized as an additional performance obligation, resulting in an allocation of the transaction price and deferral of revenue until the subsequent reward redemption. We do not expect this change to have a material impact on our consolidated results.

We are continuing to make changes to certain processes and internal controls, in order to address the impacts of the new standard, which we expect to finalize during the fourth quarter of fiscal 2018. Lastly, we are continuing to evaluate the disclosure requirements of the new standard.

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Other Income [Table Text Block]

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

	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
(Losses) gains on derivatives not designated as hedging instruments (1)	$	(9,102	)	$	(817	)	$	(19,103	)	$	12,737
Currency-related gains (losses), net (2)	7,519			(6,304		)	(7,133		)	5,719
Other gains (3)	25			539			634			3,379
Total other (expense) income, net	$	(1,558	)	$	(6,582	)	$	(25,602	)	$	21,835

_____________________

(1) Primarily relates to both realized and unrealized (losses) gains on derivative currency forward and option contracts not designated as hedging instruments.

(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 gains (losses), net for the three and nine months ended March 31, 2018 and 2017 are primarily driven by this intercompany activity. In addition, we have certain cross-currency swaps designated as cash flow hedges, which hedge the remeasurement of certain intercompany loans, both presented in the same component above. Unrealized losses related to cross-currency swaps were $3,582and $9,708for the three and nine months ended March 31, 2018, respectively, and unrealized losses of $1,709 and gains of $4,684 for the three and nine months ended March 31, 2017, respectively.

(3) During the nine months ended March 31, 2017, we recognized a gain of $2,268 related to the sale of Plaza Create Co. Ltd. available for sale securities.

Schedule of Weighted Average Number of Shares [Table Text Block]

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,
	2018	2017	2018	2017
Weighted average shares outstanding, basic	30,724,018	31,103,388	30,992,066	31,323,451
Weighted average shares issuable upon exercise/vesting of outstanding share options/RSUs/RSAs (1)	—	—	1,284,454	—
Shares used in computing diluted net (loss) income per share attributable to Cimpress N.V.	30,724,018	31,103,388	32,276,520	31,323,451
Weighted average anti-dilutive shares excluded from diluted net (loss) income per share attributable to Cimpress N.V.	1,448,530	1,262,902	3,054	1,379,481

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Fair Value Measurements (Tables)

9 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair value of financial assets

The following tables summarize our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy:

	March 31, 2018
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Interest rate swap contracts	$	10,360		$	—	$	10,360		$	—
Currency forward contracts	26			—		26			—
Currency option contracts	11			—		11			—
Total assets recorded at fair value	$	10,397		$	—	$	10,397		$	—
Liabilities
Cross-currency swap contracts	$	(42,073	)	$	—	$	(42,073	)	$	—
Currency forward contracts	(37,885		)	—		(37,885		)	—
Currency option contracts	(685		)	—		(685		)	—
Total liabilities recorded at fair value	$	(80,643	)	$	—	$	(80,643	)	$	—

	June 30, 2017
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Interest rate swap contracts	$	1,717		$	—	$	1,717		$	—
Total assets recorded at fair value	$	1,717		$	—	$	1,717		$	—
Liabilities
Interest rate swap contracts	$	(483	)	$	—	$	(483	)	$	—
Cross-currency swap contracts	(19,760		)	—		(19,760		)	—
Currency forward contracts	(14,700		)	—		(14,700		)	—
Currency option contracts	(651		)	—		(651		)	—
Contingent consideration	(5,453		)	—		—			(5,453		)
Total liabilities recorded at fair value	$	(41,047	)	$	—	$	(35,594	)	$	(5,453	)

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table represents the changes in fair value of Level 3 contingent consideration:

	Nine Months Ended March 31,
	2018 (1)			2017 (1)
Balance at June 30, 2017 and 2016, respectively	$	5,453		$	1,212
Fair value adjustment	220			2,514
Cash payments	(5,951		)	—
Foreign currency impact	278			(89		)
Balance at March 31	$	—		$	3,637

_____________________

(1) As of June 30, 2017 and March 31, 2017, contingent consideration was classified as a current liability on the consolidated balance sheets. As of June 30, 2016 the liability was classified as a long-term liability on the consolidated balance sheet.

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Derivative Financial Instruments (Tables)

9 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments [Table Text Block]

As of March 31, 2018, we had the following outstanding currency derivative contracts that were not designated for hedge accounting and were used to hedge fluctuations in the U.S. Dollar value of forecasted transactions denominated in Australian Dollar, British Pound, Canadian Dollar, Danish Krone, Euro, Indian Rupee,Mexican Peso, New Zealand Dollar, Norwegian Krone, and Swedish Krona:

Notional Amount	Effective Date	Maturity Date	Number of Instruments	Index
$512,301	January 2017 through March 2018	Various dates through March 2020	489	Various

As of March 31, 2018, we had nine outstanding interest rate swap contracts indexed to one-month LIBOR.These instruments were designated as cash flow hedges of interest rate risk and have varying start dates and maturity dates through December 2025.

Interest rate swap contracts outstanding:	Notional Amounts
Contracts accruing interest as of March 31, 2018	$	65,000
Contracts with a future start date	350,000
Total	$	415,000

Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The table below presents the fair value of our derivative financial instruments as well as their classification on the balance sheet as of March 31, 2018 and June 30, 2017. Our derivative asset and liability balances will fluctuate with interest rate and currency exchange rate volatility. Our derivative liabilities have increased significantly during the nine months ended March 31, 2018 mainly due to the weakening of the US dollar.

	March 31, 2018
	Asset Derivatives								Liability Derivatives
Derivatives designated as hedging instruments	Balance Sheet line item	Gross amounts of recognized assets		Gross amount offset in consolidated balance sheet			Net amount		Balance Sheet line item	Gross amounts of recognized liabilities			Gross amount offset in consolidated balance sheet		Net amount
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps	Other non-current assets	$	10,452	$	(92	)	$	10,360	Other current liabilities / other liabilities	$	—		$	—	$	—
Cross-currency swaps	Other non-current assets	—		—			—		Other liabilities	(18,897		)	—		(18,897		)
Derivatives in Net Investment Hedging Relationships
Cross-currency swaps	Other non-current assets	—		—			—		Other liabilities	(23,176		)	—		(23,176		)
Currency forward contracts	Other non-current assets	—		—			—		Other liabilities	(23,831		)	—		(23,831		)
Total derivatives designated as hedging instruments		$	10,452	$	(92	)	$	10,360		$	(65,904	)	$	—	$	(65,904	)
Derivatives not designated as hedging instruments
Currency forward contracts	Other current assets / other assets	$	26	$	—		$	26	Other current liabilities / other liabilities	$	(15,361	)	$	1,307	$	(14,054	)
Currency option contracts	Other current assets / other assets	11		—			11		Other current liabilities / other liabilities	(814		)	129		(685		)
Total derivatives not designated as hedging instruments		$	37	$	—		$	37		$	(16,175	)	$	1,436	$	(14,739	)

	June 30, 2017
	Asset Derivatives								Liability Derivatives
Derivatives designated as hedging instruments	Balance Sheet line item	Gross amounts of recognized assets		Gross amount offset in consolidated balance sheet			Net amount		Balance Sheet line item	Gross amounts of recognized liabilities			Gross amount offset in consolidated balance sheet		Net amount
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps	Other non-current assets	$	2,072	$	(355	)	$	1,717	Other current liabilities / other liabilities	$	(483	)	$	—	$	(483	)
Cross-currency swaps	Other non-current assets	—		—			—		Other liabilities	(7,640		)	—		(7,640		)
Derivatives in Net Investment Hedging Relationships
Cross-currency swaps	Other non-current assets	—		—			—		Other liabilities	(12,120		)	—		(12,120		)
Currency forward contracts	Other non-current assets	—		—			—		Other liabilities	(9,896		)	—		(9,896		)
Total derivatives designated as hedging instruments		$	2,072	$	(355	)	$	1,717		$	(30,139	)	$	—	$	(30,139	)
Derivatives not designated as hedging instruments
Currency forward contracts	Other current assets / other assets	$	—	$	—		$	—	Other current liabilities / other liabilities	$	(8,033	)	$	3,229	$	(4,804	)
Currency Option Contracts	Other current assets / other assets	—		—			—		Other current liabilities / other liabilities	(651		)	—		(651		)
Total derivatives not designated as hedging instruments		$	—	$	—		$	—		$	(8,684	)	$	3,229	$	(5,455	)

Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net

The following table presents the effect of the effective portion of our derivative financial instruments designated as hedging instruments and their classification within comprehensive income (loss) for the three and nine months ended March 31, 2018 and 2017:

Derivatives in Hedging Relationships	Amount of Gain (Loss) Recognized in Comprehensive Income (Loss) on Derivatives
	Three Months Ended March 31,						Nine Months Ended March 31,
In thousands	2018			2017			2018			2017
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps	$	6,087		$	314		$	7,330		$	3,078
Cross-currency swaps	2,321			(740		)	5,492			3,971
Derivatives in Net Investment Hedging Relationships
Cross-currency swaps	(3,873		)	(841		)	(10,307		)	3,983
Currency forward contracts	(5,576		)	(802		)	(13,935		)	137
	$	(1,041	)	$	(2,069	)	$	(11,420	)	$	11,169

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

The following table presents reclassifications out of accumulated other comprehensive loss for the three and nine months ended March 31, 2018 and 2017:

Details about Accumulated Other Comprehensive Loss Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) to Net (Loss) Income												Affected line item in the Statement of Operations
	Three Months Ended March 31,						Nine Months Ended March 31,
In thousands	2018			2017			2018			2017
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps	$	100		$	(61	)	$	(6	)	$	(100	)	Interest expense, net
Cross-currency swaps	(3,321		)	(1,131		)	(8,756		)	6,366			Other (expense) income, net
Total before income tax	(3,221		)	(1,192		)	(8,762		)	6,266			Income (loss) before income taxes
Income tax	805			297			2,212			(1,568		)	Income tax expense
Total	$	(2,416	)	$	(895	)	$	(6,550	)	$	4,698

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]

The following table presents the adjustment to fair value recorded within the consolidated statements of operations for derivative instruments for which we did not elect hedge accounting, as well as the effect of the ineffective portion and de-designated derivative financial instruments that no longer qualify as hedging instruments in the period:

	Amount of Gain (Loss) Recognized in Net (Loss) Income											Location of Gain (Loss) Recognized in Income (Ineffective Portion)
	Three Months Ended March 31,						Nine Months Ended March 31,
In thousands	2018			2017			2018			2017
Derivatives not designated as hedging instruments
Currency contracts	$	(9,103	)	$	(820	)	$	(19,382	)	$	12,481	Other (expense) income, net
Interest rate swaps	1			3			279			256		Other (expense) income, net
	$	(9,102	)	$	(817	)	$	(19,103	)	$	12,737

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Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Mar. 31, 2018

Equity [Abstract]

Schedule of accumulated other comprehensive income (loss)

The following table presents a roll forward of amounts recognized in accumulated other comprehensive loss by component, net of tax of$(3,237)for the nine months ended March 31, 2018:

	Gains (losses) on cash flow hedges (1)			Gains (losses) on pension benefit obligation			Translation adjustments, net of hedges (2)			Total
Balance as of June 30, 2017	$	(2,250	)	$	(357	)	$	(110,791	)	$	(113,398	)
Other comprehensive income (loss) before reclassifications	12,822			—			24,650			37,472
Amounts reclassified from accumulated other comprehensive loss to net (loss) income	(6,550		)	—			—			(6,550		)
Net current period other comprehensive income (loss)	6,272			—			24,650			30,922
Balance as of March 31, 2018	$	4,022		$	(357	)	$	(86,141	)	$	(82,476	)

________________________

(1) Gains (losses) on cash flow hedges include our interest rates swap and cross-currency swap contracts designated in cash flow hedging relationships.

(2) As of March 31, 2018 and June 30, 2017, the translation adjustment is inclusive of the effects of our net investment hedges, of which, unrealized losses of $41,290 and $17,048, respectively, net of tax, have been included in accumulated other comprehensive loss.

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Goodwill and Acquired Intangible Assets (Tables)

9 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

The carrying amount of goodwill by reportable segment as of March 31, 2018 and June 30, 2017 is as follows:

	Vistaprint			Upload and Print		National Pen			All Other Businesses		Total
Balance as of June 30, 2017	$	147,207		$	321,805	$	34,520		$	11,431	$	514,963
Adjustments	(58		)	—		(86		)	—		(144		)
Effect of currency translation adjustments (1)	2,706			24,844		—			—		27,550
Balance as of March 31, 2018	$	149,855		$	346,649	$	34,434		$	11,431	$	542,369

_________________

(1) Relates to goodwill held by subsidiaries whose functional currency is not the U.S. Dollar.

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Other Balance Sheet Components (Tables)

9 Months Ended

Mar. 31, 2018

Payables and Accruals [Abstract]

Accrued expenses

Accrued expenses included the following:

	March 31, 2018		June 30, 2017
Compensation costs	$	59,908	$	54,487
Income and indirect taxes	45,691		34,469
Advertising costs	28,001		26,641
Interest payable	10,335		5,263
Production costs	9,558		7,472
Shipping costs	6,817		6,651
Sales returns	5,722		4,474
Professional fees	3,138		3,021
Purchases of property, plant and equipment	2,077		3,786
Other	39,160		29,303
Total accrued expenses	$	210,407	$	175,567

Other Current Liabilities [Table Text Block]

Other current liabilities included the following:

	March 31, 2018		June 30, 2017
Contingent earn-out liability (1)	$	—	$	44,049
Current portion of lease financing obligation	12,569		12,569
Short-term derivative liabilities	17,184		7,243
Current portion of capital lease obligations	11,521		11,573
Mandatorily redeemable noncontrolling interest (2)	1,144		901
Other	504		2,100
Total other current liabilities	$	42,922	$	78,435

Schedule of Other Assets and Other Liabilities [Table Text Block]

Other liabilities included the following:

	March 31, 2018		June 30, 2017
Long-term derivative liabilities	$	64,986	$	31,936
Long-term capital lease obligations	20,458		28,306
Mandatorily redeemable noncontrolling interest (2)	2,757		2,456
Other (3)	32,409		31,985
Total other liabilities	$	120,610	$	94,683

_______________________

(1) On January 2, 2018, we paid the contingent earn-out liability in full, refer to the summary below for additional details.

(2) Relates to the mandatorily redeemable noncontrolling interest of Printi LLC. Refer to Note 11 for additional details.

(3) As of March 31, 2018 and June 30, 2017, other liabilities includes $9,773 and $8,173, respectively, related to share-based compensation awards associated with our investment in Printi LLC. Refer to Note 11 for additional details.

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Total Debt (Tables)

9 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

Debt

	March 31, 2018			June 30, 2017
Senior secured credit facility	$	537,276		$	600,037
7.0% Senior unsecured notes due 2022	275,000			275,000
Other	7,906			7,541
Debt issuance costs and debt discounts (1)	(7,567		)	(5,922		)
Total debt outstanding, net	812,615			876,656
Less short-term debt (2)	26,214			28,926
Long-term debt	$	786,401		$	847,730

_____________________

(1) During the nine months ended March 31, 2018, we capitalized $3,251 in debt issuance costs, which related to the amendment and restatement to our senior secured credit facility. Refer below for additional details relating to the amendment.

(2) Balances as of March 31, 2018 and June 30, 2017 are inclusive of short-term debt issuance costs and debt discounts of $1,846 and $1,693, respectively

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Noncontrolling interest (Tables)

9 Months Ended

Mar. 31, 2018

Noncontrolling Interest [Line Items]

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Table Text Block]

The following table presents the reconciliation of changes in our noncontrolling interests:

	Redeemable noncontrolling interests		Noncontrolling interest
Balance as of June 30, 2017	$	45,412	$	213
Net income attributable to noncontrolling interest	1,320		74
Proceeds from sale of noncontrolling interest	35,390		—
Foreign currency translation	5,683		—
Balance as of March 31, 2018	$	87,805	$	287

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Segment Information (Tables)

9 Months Ended

Mar. 31, 2018

Segment Reporting, Revenue Reconciling Item [Line Items]

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

The following tables set forth revenue, segment profit (loss), total income from operations and total income before income taxes.

	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
Revenue:
Vistaprint (1)	$	357,606		$	322,804		$	1,105,557		$	990,160
Upload and Print (2)	183,768			142,476			536,685			426,821
National Pen (3)	81,545			58,828			267,360			58,828
All Other Businesses (4)	18,865			28,027			67,913			99,410
Total segment revenue	641,784			552,135			1,977,515			1,575,219
Inter-segment eliminations	(5,715		)	(1,550		)	(16,108		)	(4,070		)
Total consolidated revenue	$	636,069		$	550,585		$	1,961,407		$	1,571,149

_____________________

(1) Vistaprint segment revenues include inter-segment revenue of $2,747 and $7,753 for the three and nine months ended March 31, 2018, respectively, and $1,550 and $4,069 for the prior comparative periods, respectively.

(2) Upload and Print segment revenues include inter-segment revenue of $329 and $1,137for the three and nine months ended March 31, 2018, respectively. No inter-segment revenue was recognized in the prior comparable periods.

(3) National Pen segment revenues include inter-segment revenue of $805 and $2,275for the three and nine months ended March 31, 2018, respectively. No inter-segment revenue was recognized in the prior comparable periods.

(4) All Other Businesses segment revenues include inter-segment revenue of $1,834 and $4,943 for the three and nine months ended March 31, 2018, respectively. No inter-segment revenue was recognized in the prior comparable periods.

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

	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
Segment profit (loss):
Vistaprint	$	57,661		$	37,627		$	187,605		$	129,915
Upload and Print	17,367			12,983			54,605			43,232
National Pen	355			(3,226		)	19,185			(3,226		)
All Other Businesses	(9,342		)	(10,085		)	(25,459		)	(21,944		)
Total segment profit	66,041			37,299			235,936			147,977
Central and corporate costs	(35,891		)	(28,028		)	(97,558		)	(87,442		)
Acquisition-related amortization and depreciation	(13,030		)	(13,508		)	(38,330		)	(33,740		)
Earn-out related charges (1)	—			(4,882		)	(2,391		)	(28,139		)
Share-based compensation related to investment consideration	—			(375		)	(1,047		)	(5,079		)
Certain impairments (2)	—			(9,556		)	—			(9,556		)
Restructuring-related charges	(2,331		)	(24,790		)	(14,686		)	(25,890		)
Interest expense for Waltham, MA lease	1,838			1,897			5,645			5,823
Gain on the purchase or sale of subsidiaries (3)	—			—			48,380			—
Total income (loss) from operations	16,627			(41,943		)	135,949			(36,046		)
Other (expense) income, net	(1,558		)	(6,582		)	(25,602		)	21,835
Interest expense, net	(12,652		)	(11,584		)	(38,263		)	(31,119		)
Income (loss) before income taxes	$	2,417		$	(60,109	)	$	72,084		$	(45,330	)

___________________

(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 for certain 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."

(3) Includes the impact of the gain on the sale of Albumprinter, as well as a bargain purchase gain as defined by ASC 805-30 for an acquisition in which the identifiable assets acquired and liabilities assumed are greater than the consideration transferred, that was recognized in general and administrative expense in our consolidated statement of operations during the

Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block]

	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
Purchases of property, plant and equipment:
Vistaprint	$	4,843	$	12,046	$	29,342	$	31,590
Upload and Print	2,279		2,894		11,270		10,878
National Pen	1,183		1,013		4,891		1,013
All Other Businesses	252		4,134		1,231		10,647
Central and corporate costs	210		569		707		2,788
Total purchases of property, plant and equipment	$	8,767	$	20,656	$	47,441	$	56,916

	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
Capitalization of software and website development costs:
Vistaprint	$	7,186	$	6,429	$	18,266	$	15,091
Upload and Print	1,149		514		2,939		1,627
National Pen	302		—		669		—
All Other Businesses	443		1,063		1,811		2,968
Central and corporate costs	2,282		1,562		5,791		8,992
Total capitalization of software and website development costs	$	11,362	$	9,568	$	29,476	$	28,678

	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
Depreciation and amortization:
Vistaprint	$	16,460	$	16,885	$	48,943	$	47,784
Upload and Print	15,701		14,151		45,426		42,182
National Pen	5,372		5,277		15,742		5,277
All Other Businesses	2,538		3,698		6,981		11,033
Central and corporate costs	3,366		3,391		10,028		9,508
Total depreciation and amortization	$	43,437	$	43,402	$	127,120	$	115,784

Revenues and long-lived assets by geographic area

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

	March 31, 2018		June 30, 2017
Long-lived assets (1):
Netherlands	$	106,816	$	83,223
Canada	83,878		85,926
Switzerland	52,811		49,017
Italy	45,121		44,423
United States	41,241		64,034
Australia	23,288		22,961
France	22,030		22,794
Jamaica	21,548		21,492
Japan	20,913		20,686
Other	71,786		64,377
Total	$	489,432	$	478,933

___________________

(1) Excludes goodwill of $542,369 and $514,963, intangible assets, net of $250,593 and $275,924, the Waltham lease asset of $112,956 and $116,045, and deferred tax assets of $66,753 and $48,004 as of March 31, 2018 and June 30, 2017, respectively.

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Restructuring Charges (Tables)

9 Months Ended

Mar. 31, 2018

Restructuring Cost and Reserve [Line Items]

Restructuring and Related Costs [Table Text Block]

The following table summarizes the restructuring activity during the nine months ended March 31, 2018:

	Severance and Related Benefits			Other Restructuring Costs			Total
Accrued restructuring liability as of June 30, 2017 (1)	$	4,602		$	208		$	4,810
Restructuring Charges (2)	14,595			91			14,686
Cash payments	(14,890		)	(216		)	(15,106		)
Non-cash charges (3)	(1,317		)	—			(1,317		)
Accrued restructuring liability as of March 31, 2018	$	2,990		$	83		$	3,073

_____________________

(1) Accrued restructuring liability as of June 30, 2017 relates to our restructuring initiative announced in January 2017 and all remaining obligations have been paid as of March 31, 2018.

(2) We do not expect any material charges to be incurred in future periods related to each of these initiatives.

(3) Non-cash charges include acceleration of share-based compensation expenses.

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Summary of Significant Accounting Policies (Details Textuals) € in Thousands, $ in Thousands		3 Months Ended		9 Months Ended			12 Months Ended
		Mar. 31, 2018 USD ($) shares	Mar. 31, 2017 USD ($) shares	Mar. 31, 2018 EUR (€) shares	Mar. 31, 2018 USD ($) shares	Mar. 31, 2017 USD ($) shares	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)
Accounting Policies [Line Items]
Share-based Compensation		$ 13,492	$ 12,797		$ 33,718	$ 35,645
Proceeds from Divestiture of Interest in Consolidated Subsidiaries				€ 78,382	93,071
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries					11,874
Gain (Loss) on sale of subsidiaries		0	0		47,545	0
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	[1]	(9,102)	(817)		(19,103)	12,737
Foreign Currency Transaction Gain (Loss), Realized	[2]	7,519	(6,304)		(7,133)	5,719
Other Nonoperating Gains (Losses)	[3]	25	539		634	3,379
Other (expense) income, net		(1,558)	(6,582)		(25,602)	21,835
Marketable Securities, Realized Gain		$ 0	$ 0		$ 0	$ (2,268)
Weighted average shares outstanding — basic | shares		30,724,018	31,103,388	30,992,066	30,992,066	31,323,451
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | shares		0	0	1,284,454	1,284,454	0
Weighted average shares outstanding — diluted | shares		30,724,018	31,103,388	32,276,520	32,276,520	31,323,451
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares		1,448,530	1,262,902	3,054	3,054	1,379,481
Property, plant and equipment, net		$ 501,115			$ 501,115			$ 511,947
Treasury Stock, Shares, Acquired | shares				895,377	895,377	593,763
Payments for Repurchase of Common Stock					$ 94,710	$ 50,008
Waltham Lease [Member]
Accounting Policies [Line Items]
Property, plant and equipment, net		112,956			112,956			116,045
Other Liabilities		116,307			116,307			$ 119,176
Other Current Assets [Member]
Accounting Policies [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption		24,573			24,573
Deferred Tax Asset [Domain]
Accounting Policies [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption		18,710			18,710
Retained Earnings [Member]
Accounting Policies [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets		5,863			5,863
Cross Currency Interest Rate Contract [Member]
Accounting Policies [Line Items]
Unrealized Gain (Loss) on Cash Flow Hedging Instruments		3,582	$ 1,709		9,708	$ 4,684
Income Taxes [Member] | Scenario, Forecast [Member]
Accounting Policies [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification							$ 9,787
Supplemental PSU [Member]
Accounting Policies [Line Items]
Share-based Compensation		$ 5,615			$ 9,925

[1] Primarily relates to both realized and unrealized (losses) gains on derivative currency forward and option contracts not designated as hedging instruments.

[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 gains (losses), net for the three and nine months ended March 31, 2018 and 2017 are primarily driven by this intercompany activity. In addition, we have certain cross-currency swaps designated as cash flow hedges, which hedge the remeasurement of certain intercompany loans, both presented in the same component above. Unrealized losses related to cross-currency swaps were $3,582 and $9,708 for the three and nine months ended March 31, 2018, respectively, and unrealized losses of $1,709 and gains of $4,684 for the three and nine months ended March 31, 2017, respectively.

[3] we recognized a gain of $2,268 related to the sale of Plaza Create Co. Ltd. available for sale securities.

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Fair Value Measurements (Details) € in Thousands, $ in Thousands		3 Months Ended	9 Months Ended
		Mar. 31, 2018 USD ($)	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2018 EUR (€)	Mar. 31, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Liability, Current	[1]					$ 0	$ 44,049
Payment of contingent consideration in excess of acquisition date fair value		$ 48,069
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings			$ 220	$ 2,514
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss)			$ 278	(89)
Debt, Long-term and Short-term, Combined Amount						812,615	876,656
Debt Instrument, Fair Value Disclosure						777,314	906,744
Total debt, Gross [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt, Long-term and Short-term, Combined Amount						820,182	882,578
WIRmachenDRUCK GmbH [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration							(5,453)
Fair value, recurring measurements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring						10,397	1,717
Liabilities, Fair Value Disclosure, Recurring						80,643	41,047
Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities), at Fair Value, Net						10,360
Derivative Liability							(483)
Cross Currency Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability						(42,073)	(19,760)
Currency Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities), at Fair Value, Net							1,717
Derivative Asset, Fair Value, Gross Asset						26
Derivative Liability						(37,885)	(14,700)
Foreign Exchange Option [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset, Fair Value, Gross Asset						11
Derivative Liability						(685)	(651)
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Liability, Current | €					€ 40,000
Not Designated as Hedging Instrument [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset, Fair Value, Gross Asset						37
Derivative Liability							(5,455)
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset, Fair Value, Gross Asset						26
Foreign Currency Contract, Asset, Fair Value Disclosure						26
Not Designated as Hedging Instrument [Member] | Foreign Exchange Option [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset, Fair Value, Gross Asset						11
Derivative Liability						(685)	(651)
Foreign Currency Contract, Asset, Fair Value Disclosure						11
Fair Value, Inputs, Level 2 [Member] | Fair value, recurring measurements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Recurring						10,397	1,717
Liabilities, Fair Value Disclosure, Recurring						80,643	35,594
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities), at Fair Value, Net						10,360
Derivative Liability							(483)
Fair Value, Inputs, Level 2 [Member] | Cross Currency Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability						(42,073)	(19,760)
Fair Value, Inputs, Level 2 [Member] | Currency Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets (Liabilities), at Fair Value, Net							1,717
Derivative Asset, Fair Value, Gross Asset						26
Derivative Liability						(37,885)	(14,700)
Fair Value, Inputs, Level 2 [Member] | Foreign Exchange Option [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability						(685)
Fair Value, Inputs, Level 3 [Member] | Fair value, recurring measurements [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, Fair Value Disclosure, Recurring							5,453
Other Noncurrent Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value								$ 1,212
Contingent Consideration				(3,637)
Other Noncurrent Liabilities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration							(5,453)
Other Current Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value	[2]					$ 0	$ 5,453
Noncontrolling Interest [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payment of continent consideration relating to business combination		$ (5,951)
Other Noncurrent Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payment of continent consideration relating to business combination				$ 0

[1] On January 2, 2018, we paid the contingent earn-out liability in full, refer to the summary below for additional details.

[2] As of June 30, 2017 and March 31, 2017, contingent consideration was classified as a current liability on the consolidated balance sheets. As of June 30, 2016 the liability was classified as a long-term liability on the consolidated balance sheet.

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Derivative Financial Instruments (Details) $ in Thousands		3 Months Ended		9 Months Ended
		Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2018 USD ($) instrument	Mar. 31, 2017 USD ($) instrument	Jun. 30, 2017 USD ($)
Derivative [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	[1]	$ (9,102)	$ (817)	$ (19,103)	$ 12,737
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net		(1,041)	(2,069)	(11,420)	$ 11,169
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset		10,452		10,452		$ 2,072
Derivative Asset, Fair Value, Gross Liability		(92)		(92)		(355)
Derivative Liability, Fair Value, Gross Liability		(65,904)		(65,904)		(30,139)
Derivative Liability, Fair Value, Gross Asset		0		0		0
Derivative Liability		(65,904)		(65,904)		(30,139)
Interest Rate Cash Flow Hedge Asset at Fair Value		10,360		10,360		1,717
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset		37		37
Derivative Asset, Fair Value, Gross Liability		0		0
Derivative Liability, Fair Value, Gross Liability		(16,175)		(16,175)		(8,684)
Derivative Liability, Fair Value, Gross Asset		1,436		1,436		3,229
Derivative Liability						(5,455)
Interest Rate Swap Contracts, Assets, Fair Value Disclosure		37		37
Foreign Exchange Option [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset		11		11
Derivative Liability		(685)		(685)		(651)
Foreign Exchange Option [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset		11		11
Derivative Asset, Fair Value, Gross Liability		0		0
Derivative Liability, Fair Value, Gross Liability		(814)		(814)		(651)
Derivative Liability, Fair Value, Gross Asset		129		129		0
Derivative Liability		(685)		(685)		(651)
Foreign Currency Contract, Asset, Fair Value Disclosure		11		$ 11
Interest Rate Swap [Member]
Derivative [Line Items]
Derivative Liability						(483)
Derivative, Number of Ineffective Instruments Held | instrument				7	2
Notional Amount of Interest Rate Derivatives		65,000		$ 65,000
Notional value of contracts with future start date		350,000		350,000
Total current and future notional amount		$ 415,000		$ 415,000
Derivative, Number of Instruments Held		9		9
Derivative, Underlying Basis				one-month LIBOR
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net		$ 1	3	$ 279	$ 256
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months				$ 119
Interest Rate Swap [Member] | Minimum [Member]
Derivative [Line Items]
Derivative, Maturity Date				Dec. 31, 2018
Interest Rate Swap [Member] | Maximum [Member]
Derivative [Line Items]
Derivative, Maturity Date				Dec. 31, 2025
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset		10,452		$ 10,452		2,072
Derivative Asset, Fair Value, Gross Liability		(92)		(92)		(355)
Derivative Liability, Fair Value, Gross Liability		0		0		(483)
Derivative Liability, Fair Value, Gross Asset		0		0		0
Interest Rate Cash Flow Hedge Liability at Fair Value		0		0		(483)
Interest Rate Cash Flow Hedge Asset at Fair Value		10,360		10,360		1,717
Foreign Exchange Forward [Member]
Derivative [Line Items]
Notional Amount of Foreign Currency Derivatives		$ 512,301		$ 512,301
Derivative, Number of Instruments Held		489		489
Derivative, Underlying Basis				Various
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net		$ (9,103)	(820)	$ (19,382)	12,481
Foreign Exchange Forward [Member] | Minimum [Member]
Derivative [Line Items]
Derivative, Maturity Date				Oct. 15, 2018
Foreign Exchange Forward [Member] | Maximum [Member]
Derivative [Line Items]
Derivative, Maturity Date				Oct. 17, 2022
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset		26		$ 26
Derivative Asset, Fair Value, Gross Liability		0		0
Derivative Liability, Fair Value, Gross Liability		(15,361)		(15,361)		(8,033)
Derivative Liability, Fair Value, Gross Asset		1,307		1,307		3,229
Derivative, Net Liability Position, Aggregate Fair Value						(4,804)
Foreign Currency Contract, Asset, Fair Value Disclosure		26		26
Foreign Currency Contracts, Liability, Fair Value Disclosure		(14,054)		(14,054)
Currency Swap [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset		26		26
Derivative Liability		(37,885)		(37,885)		(14,700)
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Liabilities, Fair Value		(18,897)		(18,897)
Notional Amount of Foreign Currency Derivatives		$ 120,011		$ 120,011
Derivative, Number of Instruments Held		2		2
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months				$ 865
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net		$ 2,321	(740)	$ 5,492	3,971
Currency Swap [Member] | Minimum [Member]
Derivative [Line Items]
Derivative, Maturity Date				Apr. 01, 2019
Currency Swap [Member] | Maximum [Member]
Derivative [Line Items]
Derivative, Maturity Date				Jun. 30, 2019
Currency Swap [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative Liability, Fair Value, Gross Liability		(18,897)		$ (18,897)		(7,640)
Derivative Liability, Fair Value, Gross Asset		0		0		0
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Liabilities, Fair Value						(7,640)
Interest Expense [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net		6,087	314	7,330	3,078
Fair value, recurring measurements [Member] | Foreign Exchange Forward [Member]
Derivative [Line Items]
Foreign Currency Contracts, Liability, Fair Value Disclosure		(14,739)		(14,739)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Interest Expense [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net		100	(61)	(6)	(100)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Other Income [Member] | Currency Swap [Member]
Derivative [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net		(3,321)	1,131	(8,756)	6,366
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Derivative [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net		2,416	895	6,550	(4,698)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Income (loss) before taxes [Member]
Derivative [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net		(3,221)	(1,192)	(8,762)	6,266
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Income Taxes [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net		(805)	(297)	2,212	(1,568)
Net Investment Hedging [Member] | Currency Swap [Member]
Derivative [Line Items]
Notional Amount of Foreign Currency Derivatives		$ 122,969		$ 122,969
Derivative, Number of Instruments Held		2		2
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net		$ (3,873)	(841)	$ (10,307)	3,983
Net Investment Hedging [Member] | Currency Swap [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative Liability, Fair Value, Gross Liability		(23,176)		(23,176)		(12,120)
Derivative Liability, Fair Value, Gross Asset		0		0		0
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Liabilities, Fair Value		(23,176)		(23,176)		(12,120)
Net Investment Hedging [Member] | Forward Contracts [Member]
Derivative [Line Items]
Notional Amount of Foreign Currency Derivatives		$ 175,262		$ 175,262
Derivative, Number of Instruments Held		6		6
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net		$ (5,576)	$ (802)	$ (13,935)	$ 137
Net Investment Hedging [Member] | Forward Contracts [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative Liability, Fair Value, Gross Liability		(23,831)		(23,831)		(9,896)
Derivative Liability, Fair Value, Gross Asset		0		0		0
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Liabilities, Fair Value		$ (23,831)		$ (23,831)		$ (9,896)

[1] Primarily relates to both realized and unrealized (losses) gains on derivative currency forward and option contracts not designated as hedging instruments.

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Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
		Mar. 31, 2018	Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), tax		$ (3,237)
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease)		(41,290)	$ (17,048)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive loss		(113,398)
Other comprehensive income (loss) before reclassifications		37,472
Amounts reclassified from accumulated other comprehensive loss to net (loss) income		(6,550)
Net current period other comprehensive income (loss)		30,922
Accumulated other comprehensive loss		(82,476)	(113,398)
Pension Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive loss		(357)
Amounts reclassified from accumulated other comprehensive loss to net (loss) income		0
Net current period other comprehensive income (loss)		0
Accumulated other comprehensive loss		(357)	(357)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive loss	[1]	(2,250)
Other comprehensive income (loss) before reclassifications	[1]	12,822
Amounts reclassified from accumulated other comprehensive loss to net (loss) income	[1]	(6,550)
Net current period other comprehensive income (loss)	[1]	6,272
Accumulated other comprehensive loss	[1]	4,022	(2,250)
Accumulated Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive loss	[2]	(110,791)
Other comprehensive income (loss) before reclassifications	[2]	24,650
Amounts reclassified from accumulated other comprehensive loss to net (loss) income	[2]	0
Net current period other comprehensive income (loss)	[2]	24,650
Accumulated other comprehensive loss	[2]	(86,141)	$ (110,791)
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax		$ 0

[1] Gains (losses) on cash flow hedges include our interest rates swap and cross-currency swap contracts designated in cash flow hedging relationships.

[2] As of March 31, 2018 and June 30, 2017, the translation adjustment is inclusive of the effects of our net investment hedges, of which, unrealized losses of $41,290 and $17,048, respectively, net of tax, have been included in accumulated other comprehensive loss.

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Goodwill and Acquired Intangible Assets (Details) - USD ($)		3 Months Ended		9 Months Ended
		Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Goodwill [Roll Forward]
Goodwill, Beginning Balance				$ 514,963,000
Goodwill, Purchase Accounting Adjustments	[1]			(144,000)
Effect of Currency Translation Adjustments				27,550,000
Ending Balance		$ 542,369,000		542,369,000
Amortization of acquired intangible assets		12,941,000	$ 13,450,000	38,132,000	$ 33,542,000
Impairment of goodwill and acquired intangible assets		0	9,556,000	0	9,556,000
Vistaprint Business Unit [Member]
Goodwill [Roll Forward]
Goodwill, Beginning Balance				147,207,000
Goodwill, Purchase Accounting Adjustments	[1]			(58,000)
Effect of Currency Translation Adjustments				2,706,000
Ending Balance		149,855,000		149,855,000
Upload and Print Business Units [Member]
Goodwill [Roll Forward]
Goodwill, Beginning Balance				321,805,000
Effect of Currency Translation Adjustments				24,844,000
Ending Balance		346,649,000		346,649,000
National Pen CO. LLC [Member]
Goodwill [Roll Forward]
Goodwill, Beginning Balance				34,520,000
Goodwill, Purchase Accounting Adjustments	[1]			(86,000)
Ending Balance		34,434,000		34,434,000
All Other Business Units [Member]
Goodwill [Roll Forward]
Goodwill, Beginning Balance				11,431,000
Effect of Currency Translation Adjustments				0
Ending Balance		$ 11,431,000		$ 11,431,000
Finite-Lived Intangible Assets [Member]
Goodwill [Roll Forward]
Impairment of goodwill and acquired intangible assets					3,211,000
Goodwill [Member]
Goodwill [Roll Forward]
Impairment of goodwill and acquired intangible assets					$ 6,345,000
Other Intangible Assets [Member]
Goodwill [Roll Forward]
Impairment of goodwill and acquired intangible assets			$ 3,211

[1] Relates to goodwill held by subsidiaries whose functional currency is not the U.S. Dollar.

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Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
Schedule of other current liabilities [Line Items]
Compensation costs	$ 59,908	$ 54,487
Income and indirect taxes	45,691	34,469
Accrued Advertising	28,001	26,641
Shipping costs	6,817	6,651
Sales returns	5,722	4,474
Production costs	9,558	7,472
Interest Payable	10,335	5,263
Purchases of property, plant and equipment	2,077	3,786
Professional costs	3,138	3,021
Other	39,160	29,303
Accrued Liabilities	$ 210,407	$ 175,567

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Other Current Liabilities (Details) € in Thousands, $ in Thousands		3 Months Ended	9 Months Ended
		Mar. 31, 2017 USD ($)	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2018 EUR (€)	Mar. 31, 2018 USD ($)	Jun. 30, 2017 USD ($)
Schedule of other current liabilities [Line Items]
Business Combination, Contingent Consideration, Liability, Current	[1]					$ 0	$ 44,049
Lease financing obligation, short-term portion						12,569	12,569
Derivative Liability, Current						17,184	7,243
Capital Lease Obligations, Current						11,521	11,573
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount, Current	[2]					1,144	901
Other Liabilities, Current						42,922	78,435
Asset at Fair Value, Changes in Fair Value Resulting from Changes in Assumptions		$ 4,598	$ 1,774	$ 27,364
Other Current Liabilities [Member]
Schedule of other current liabilities [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value	[3]					0	5,453
Other Liabilities, Current						$ 504	2,100
Maximum [Member]
Schedule of other current liabilities [Line Items]
Business Combination, Contingent Consideration, Liability, Current | €					€ 40,000
WIRmachenDRUCK GmbH [Member]
Schedule of other current liabilities [Line Items]
Business Combination, Contingent Consideration, Liability							$ 5,453

[1] On January 2, 2018, we paid the contingent earn-out liability in full, refer to the summary below for additional details.

[2] Relates to the mandatorily redeemable noncontrolling interest of Printi LLC. Refer to Note 11 for additional details.

[3] As of June 30, 2017 and March 31, 2017, contingent consideration was classified as a current liability on the consolidated balance sheets. As of June 30, 2016 the liability was classified as a long-term liability on the consolidated balance sheet.

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Other Balance Sheet Components Other liabilities (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Jun. 30, 2017
Schedule of other liabilities [Line Items]
Payment of contingent consideration in excess of acquisition date fair value		$ 48,069
Derivative Liability, Noncurrent		64,986	$ 31,936
Capital Lease Obligations, Noncurrent		20,458	28,306
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount, Noncurrent	[1]	2,757	2,456
Other Liabilities, Noncurrent		120,610	94,683
Deferred Compensation Share-based Arrangements, Liability, Classified, Noncurrent		9,773	8,173
Other Noncurrent Liabilities [Member]
Schedule of other liabilities [Line Items]
Other Liabilities, Noncurrent	[2]	$ 32,409	$ 31,985

[1] Relates to the mandatorily redeemable noncontrolling interest of Printi LLC. Refer to Note 11 for additional details.

[2] As of March 31, 2018 and June 30, 2017, other liabilities includes $9,773 and $8,173, respectively, related to share-based compensation awards associated with our investment in Printi LLC. Refer to Note 11 for additional details.

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Debt (Details) - USD ($) $ in Thousands		9 Months Ended
		Mar. 31, 2018	Jun. 30, 2017
Line of Credit Facility [Line Items]
Debt, Long-term and Short-term, Combined Amount		$ 812,615	$ 876,656
Senior Notes		275,000
Other Long-term Debt		7,906	7,541
Debt Issuance Cost, Gross, Noncurrent		3,251
Short-term debt	[1]	26,214	28,926
Long-term debt		786,401	847,730
Line of Credit Facility, Maximum Borrowing Capacity		$ 1,045,000
Description of variable rate basis		LIBOR
Debt Instrument, Unamortized Discount	[2]	$ (7,567)	(5,922)
Line of Credit [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Unamortized Discount		(1,846)	(1,693)
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Debt, Long-term and Short-term, Combined Amount		537,276	600,037
Senior Notes [Member]
Line of Credit Facility [Line Items]
Senior Notes		$ 275,000	$ 275,000
Debt Instrument, Interest Rate, Stated Percentage		7.00%
Line of Credit [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity		$ 1,033,750
Line of Credit [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Basis spread on LIBOR		1.50%
Commitment fee (percentage)		0.225%
Line of Credit [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Basis spread on LIBOR		2.25%
Commitment fee (percentage)		0.40%
Revolving Loan, Maturity July 13, 2022 [Member]
Line of Credit Facility [Line Items]
Weighted average interest rate		3.56%
Term Loan [Domain] | Line of Credit [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity		$ 288,750
Revolving Loan, Maturity July 13, 2022 [Member] | Line of Credit [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity		$ 745,000
Redemption Any Time Prior to April 1, 2018
Line of Credit Facility [Line Items]
Debt Instrument, Redemption Price, Percentage		107.00%
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed		35.00%
Redemption Any Time Prior to April 1, 2018 - Percentage of Aggregate Outstanding Principal
Line of Credit Facility [Line Items]
Debt Instrument, Redemption Price, Percentage		100.00%

[1] Balances as of March 31, 2018 and June 30, 2017 are inclusive of short-term debt issuance costs and debt discounts of $1,846 and $1,693, respectively

[2] During the nine months ended March 31, 2018, we capitalized $3,251 in debt issuance costs, which related to the amendment and restatement to our senior secured credit facility. Refer below for additional details relating to the amendment.

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Operating Loss Carryforwards [Line Items]
Income tax expense (benefit)	$ 4,019	$ (17,431)	$ 19,657	$ (7,644)
Tax payment term			7 years 6 months
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount	(1,329)	$ (45)	$ (2,802)	$ (4,659)
Unrecognized Tax Benefits	4,872		4,872
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	355
Minimum [Member]
Operating Loss Carryforwards [Line Items]
Unrecognized Tax Benefits	600		600
Maximum [Member]
Operating Loss Carryforwards [Line Items]
Unrecognized Tax Benefits	800		$ 800
Tax Cuts and Jobs Act of 2017 [Member]
Operating Loss Carryforwards [Line Items]
Income tax expense (benefit)	$ 4,742

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Noncontrolling interest (Details) € in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2018 EUR (€)	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2018 USD ($)	Jun. 30, 2017 USD ($)
Noncontrolling Interest [Line Items]
Stockholders' Equity Attributable to Noncontrolling Interest						$ 287	$ 213
Net Income (Loss) Attributable to Noncontrolling Interest	$ 663	$ 256		$ 1,394	$ (677)
Proceeds from Noncontrolling Interests				35,390	$ 0
WIRmachenDRUCK GmbH [Member]
Noncontrolling Interest [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners			12.00%			12.00%
Proceeds from Noncontrolling Interests			€ 30,000	35,390
Exagroup SAS [Member]
Noncontrolling Interest [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired			70.00%			70.00%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners			30.00%			30.00%
Redeemable Noncontrolling Interest, Equity, Other, Redemption Value | €			€ 39,000
Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Stockholders' Equity Attributable to Noncontrolling Interest						$ 287	213
Net Income (Loss) Attributable to Noncontrolling Interest				74
Redeemable noncontrolling interest [Member]
Noncontrolling Interest [Line Items]
Stockholders' Equity Attributable to Noncontrolling Interest						$ 87,805	$ 45,412
Net Income (Loss) Attributable to Noncontrolling Interest				1,320
Proceeds from Noncontrolling Interests				35,390
Other Comprehensive (Income) Loss, Foreign Currency Translation Adjustment, Tax, Portion Attributable to Noncontrolling Interest				$ 5,683

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Variable Interest Entities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Variable Interest Entity [Line Items]
Liability equity award, fair value			$ 9,773
Liability equity award, expense recognized during period		$ 374	$ 1,047	$ 1,158
Variable Interest Entity, Ownership Percentage			49.99%
Loans to employee			$ 24,000
Due from Employees, Noncurrent			$ 17,251
Interest rate on loan receivable			8.50%
Subsequent Event [Member]
Variable Interest Entity [Line Items]
Additional ownership percentage purchase, Variable interest entity	3.70%

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Segment Information (Details)		3 Months Ended		9 Months Ended
		Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2018 USD ($)		Mar. 31, 2017 USD ($)	Jun. 30, 2017 USD ($)
Segment Reporting Information [Line Items]
Payments to Develop Software		$ 11,362,000	$ 9,568,000	$ 29,476,000		$ 28,678,000
Number of Reportable Segments				4
Revenues, Including Intersegment		641,784,000	552,135,000	$ 1,977,515,000		1,575,219,000
Revenue		636,069,000	550,585,000	1,961,407,000		1,571,149,000
Other Operating Income				(235,936,000)		(147,977,000)
Depreciation, Depletion and Amortization		43,437,000	43,402,000	127,120,000		115,784,000
Change in contingent earn-out liability				1,774,000		27,364,000
Share-based compensation expense		(13,492,000)	(12,797,000)	(33,718,000)		(35,645,000)
Restructuring Charges	[1]	(2,331,000)	(24,790,000)	(14,686,000)		(25,890,000)
Equity Method Investment, Realized Gain (Loss) on Disposal			0	48,380,000	[2]
(Loss) income from operations		16,627,000	(41,943,000)	135,949,000		(36,046,000)
Other (expense) income, net		(1,558,000)	(6,582,000)	(25,602,000)		21,835,000
Interest expense, net		(12,652,000)	(11,584,000)	(38,263,000)		(31,119,000)
Income (loss) before income taxes		2,417,000	(60,109,000)	72,084,000		(45,330,000)
Property, Plant and Equipment, Additions		8,767,000	20,656,000	47,441,000		56,916,000
Long-lived assets	[3]	489,432,000		489,432,000			$ 478,933,000
Deferred tax assets		66,753,000		66,753,000			48,004,000
Goodwill		542,369,000		542,369,000			514,963,000
Intangible assets, net		250,593,000		250,593,000			275,924,000
Property, plant and equipment, net		501,115,000		501,115,000			511,947,000
Canada [Member]
Segment Reporting Information [Line Items]
Long-lived assets		83,878,000		83,878,000			85,926,000
Netherlands [Member]
Segment Reporting Information [Line Items]
Long-lived assets		106,816,000		106,816,000			83,223,000
Switzerland [Member]
Segment Reporting Information [Line Items]
Long-lived assets		52,811,000		52,811,000			49,017,000
Australia [Member]
Segment Reporting Information [Line Items]
Long-lived assets		23,288,000		23,288,000			22,961,000
Jamaica [Member]
Segment Reporting Information [Line Items]
Long-lived assets		21,548,000		21,548,000			21,492,000
FRANCE
Segment Reporting Information [Line Items]
Long-lived assets		22,030,000		22,030,000			22,794,000
ITALY
Segment Reporting Information [Line Items]
Long-lived assets		45,121,000		45,121,000			44,423,000
JAPAN
Segment Reporting Information [Line Items]
Long-lived assets		20,913,000		20,913,000			20,686,000
Other [Member]
Segment Reporting Information [Line Items]
Long-lived assets		71,786,000		71,786,000			64,377,000
UNITED STATES
Segment Reporting Information [Line Items]
Long-lived assets		41,241,000		41,241,000			64,034,000
Waltham Lease [Member]
Segment Reporting Information [Line Items]
Interest Expense				5,645,000		5,823,000
Property, plant and equipment, net		112,956,000		112,956,000			116,045,000
Central and corporate costs [Member]
Segment Reporting Information [Line Items]
Payments to Develop Software		2,282,000	1,562,000	5,791,000		8,992,000
(Increase) decrease in segment profit			323,000			968,000
Other Operating Income				97,558,000		87,442,000
Depreciation, Depletion and Amortization		(3,366,000)	(3,391,000)	(10,028,000)		(9,508,000)
(Loss) income from operations		(35,891,000)	28,028,000
Property, Plant and Equipment, Additions		210,000	569,000	707,000		2,788,000
All Other Business Units [Member]
Segment Reporting Information [Line Items]
Payments to Develop Software		443,000	1,063,000	1,811,000		2,968,000
Revenues, Including Intersegment	[4]	18,865,000	28,027,000	67,913,000		99,410,000
(Increase) decrease in segment profit			140,000			420,000
Other Operating Income				25,459,000		21,944,000
Depreciation, Depletion and Amortization		(2,538,000)	(3,698,000)	(6,981,000)		(11,033,000)
Restructuring Charges				(819,000)
Property, Plant and Equipment, Additions		252,000	4,134,000	1,231,000		10,647,000
Goodwill		11,431,000		11,431,000			11,431,000
Vistaprint Business Unit [Member]
Segment Reporting Information [Line Items]
Payments to Develop Software		7,186,000	6,429,000	18,266,000		15,091,000
Revenues, Including Intersegment	[5]	357,606,000	322,804,000	1,105,557,000		990,160,000
(Increase) decrease in segment profit			(624,000)			(1,871,000)
Other Operating Income				(187,605,000)		(129,915,000)
Depreciation, Depletion and Amortization		(16,460,000)	(16,885,000)	(48,943,000)		(47,784,000)
Restructuring Charges		(106)		(11,782)
Property, Plant and Equipment, Additions		4,843,000	12,046,000	29,342,000		31,590,000
Goodwill		149,855,000		149,855,000			147,207,000
Upload and Print Business Units [Member]
Segment Reporting Information [Line Items]
Payments to Develop Software		1,149,000	514,000	2,939,000		1,627,000
Revenues, Including Intersegment	[6]	183,768,000	142,476,000	536,685,000		426,821,000
(Increase) decrease in segment profit			161,000			483,000
Other Operating Income				(54,605,000)		(43,232,000)
Depreciation, Depletion and Amortization		(15,701,000)	(14,151,000)	(45,426,000)		(42,182,000)
Property, Plant and Equipment, Additions		2,279,000	2,894,000	11,270,000		10,878,000
Goodwill		346,649,000		346,649,000			321,805,000
National Pen CO. LLC [Member]
Segment Reporting Information [Line Items]
Payments to Develop Software		302,000	0	669,000		0
Revenues, Including Intersegment	[7]	81,545,000	58,828,000	267,360,000		58,828,000
Other Operating Income				(19,185,000)		3,226,000
Depreciation, Depletion and Amortization		(5,372,000)	(5,277,000)	(15,742,000)		(5,277,000)
Property, Plant and Equipment, Additions		1,183,000	1,013,000	4,891,000		1,013,000
Goodwill		34,434,000		34,434,000			$ 34,520,000
Acquisition-related amortization and depreciation [Member]
Segment Reporting Information [Line Items]
Depreciation, Depletion and Amortization		13,030,000	13,508,000	38,330,000		33,740,000
Share-based compensation related to investment consideration [Member]
Segment Reporting Information [Line Items]
Share-based compensation expense		0	(375,000)	(1,047,000)		(5,079,000)
Restructuring Charges
Segment Reporting Information [Line Items]
Share-based compensation expense		(718,000)	(6,257,000)	(1,327,000)		(6,257,000)
Restructuring Charges		(2,331,000)	(24,790,000)	(14,686,000)		(25,890,000)
Certain impairments [Domain]
Segment Reporting Information [Line Items]
Asset Impairment Charges		0	(9,556,000)	0		(9,556,000)
Change in fair value of contingent consideration [Member]
Segment Reporting Information [Line Items]
Change in contingent earn-out liability	[8]	0	(4,882,000)	(2,391,000)		(28,139,000)
Waltham Lease [Member]
Segment Reporting Information [Line Items]
Interest Expense		1,838,000	1,897,000
Operating Segments [Member]
Segment Reporting Information [Line Items]
(Loss) income from operations		66,041,000	37,299,000
Operating Segments [Member] | All Other Business Units [Member]
Segment Reporting Information [Line Items]
(Loss) income from operations		(9,342,000)	(10,085,000)
Operating Segments [Member] | Vistaprint Business Unit [Member]
Segment Reporting Information [Line Items]
(Loss) income from operations		57,661,000	37,627,000
Operating Segments [Member] | Upload and Print Business Units [Member]
Segment Reporting Information [Line Items]
(Loss) income from operations		17,367,000	12,983,000
Operating Segments [Member] | National Pen CO. LLC [Member]
Segment Reporting Information [Line Items]
(Loss) income from operations		355,000	(3,226,000)
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Revenues, Including Intersegment		(5,715,000)	(1,550,000)	(16,108,000)		(4,070,000)
Intersegment Eliminations [Member] | All Other Business Units [Member]
Segment Reporting Information [Line Items]
Revenues, Including Intersegment		1,834,000		4,943,000
Intersegment Eliminations [Member] | Vistaprint Business Unit [Member]
Segment Reporting Information [Line Items]
Revenues, Including Intersegment		2,747,000	$ 1,550,000	7,753,000		$ 4,069,000
Intersegment Eliminations [Member] | Upload and Print Business Units [Member]
Segment Reporting Information [Line Items]
Revenues, Including Intersegment		329,000		1,137,000
Intersegment Eliminations [Member] | National Pen CO. LLC [Member]
Segment Reporting Information [Line Items]
Revenues, Including Intersegment		$ 805,000		$ 2,275,000

[1] Share-based compensation is allocated as follows:

[2] ncludes the impact of the gain on the sale of Albumprinter, as well as a bargain purchase gain as defined by ASC 805-30 for an acquisition in which the identifiable assets acquired and liabilities assumed are greater than the consideration transferred, that was recognized in general and administrative expense in our consolidated statement of operations during the

[3] Excludes goodwill of $542,369 and $514,963, intangible assets, net of $250,593 and $275,924, the Waltham lease asset of $112,956 and $116,045, and deferred tax assets of $66,753 and $48,004 as of March 31, 2018 and June 30, 2017, respectively.

[4] All Other Businesses segment revenues include inter-segment revenue of $1,834 and $4,943 for the three and nine months ended March 31, 2018, respectively. No inter-segment revenue was recognized in the prior comparable periods.

[5] Vistaprint segment revenues include inter-segment revenue of $2,747 and $7,753 for the three and nine months ended March 31, 2018, respectively, and $1,550 and $4,069 for the prior comparative periods, respectively.

[6] Upload and Print segment revenues include inter-segment revenue of $329 and $1,137 for the three and nine months ended March 31, 2018, respectively. No inter-segment revenue was recognized in the prior comparable periods.

[7] National Pen segment revenues include inter-segment revenue of $805 and $2,275 for the three and nine months ended March 31, 2018, respectively. No inter-segment revenue was recognized in the prior comparable periods.

[8] 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.

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Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Unrecorded Unconditional Purchase Obligation [Line Items]
Total lease expense	$ 4,340	$ 2,860	$ 10,527	$ 9,152
Capital Leased Assets	35,253		35,253
Capital lease asset, accumulated depreciation	36,022		36,022
Capital Lease Obligations	31,979		31,979
Unrecorded unconditional purchase obligation	55,245		55,245
Installment obligation			$ 2,806
Tax payment term			7 years 6 months
Upload and Print Business Units [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Contingent Consideration	3,864		$ 3,864
Third-party web services [Domain]
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded unconditional purchase obligation	21,000		21,000
Production and Computer Equipment [Domain]
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded unconditional purchase obligation	7,571		7,571
Professional Fees [Domain]
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded unconditional purchase obligation	2,680		2,680
Inventories [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded unconditional purchase obligation	1,984		1,984
Advertising Purchase Commitment [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded unconditional purchase obligation	2,698		2,698
Other purchase commitments [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded unconditional purchase obligation	$ 19,312		$ 19,312

XML

Restructuring Charges (Details) - USD ($)		3 Months Ended		9 Months Ended
		Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve		$ 3,073,000		$ 3,073,000		$ 4,810,000
Restructuring Charges	[1]	2,331,000	$ 24,790,000	14,686,000	$ 25,890,000
Payments for Restructuring				(15,106,000)
Restructuring Reserve, Settled without Cash	[2]			(1,317,000)
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve		2,990,000		2,990,000		4,602,000
Restructuring Charges				14,595,000
Payments for Restructuring				(14,890,000)
Restructuring Reserve, Settled without Cash	[2]			(1,317,000)
Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve		83,000		83,000		$ 208,000
Restructuring Charges				91,000
Payments for Restructuring				(216,000)
Vistaprint Business Unit [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges		106		11,782
All Other Business Units [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges				819,000
Central and corporate costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges		1,898
Other Restructuring [Member] | Central and corporate costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges		$ 327		$ 187

[1] Share-based compensation is allocated as follows:

[2] Non-cash charges include acceleration of share-based compensation expenses.