Shutterfly 2009 Annual Report Download - page 62

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Contractual Obligations
We lease office space in Redwood City, California and a production facility in Charlotte, North Carolina under non-
cancelable operating
leases that expire in 2010 and 2014, respectively. In 2008, we terminated the lease at our Hayward, California facility effective June 2009,
which was originally scheduled to expire in September 2009. In 2008, we entered into a non-
cancelable operating lease for our new Phoenix,
Arizona facility that commenced in February 2009 and will expire in 2016. We lease website infrastructure computer and network hardware,
production equipment, information technology equipment and software under various capital leases that expire through 2011. We also have co-
location agreements with third-
party hosting facilities that expire in 2010. As a result of our growth strategies, we believe that our liquidity and
capital resources requirements will grow in absolute dollars but will be generally consistent with historical periods on an annual basis as a
percentage of net revenues. We anticipate leasing additional office space, production facilities and hosting facilities in future periods, consistent
with our historical business model.
The following are contractual obligations at December 31, 2008, associated with lease obligations and other arrangements:
__________
Other than the obligations, liabilities and commitments described above, we have no significant unconditional purchase obligations or
similar instruments. We are not a guarantor of any other entities’ debt or other financial obligations.
Total
Less Than
1 Year
1
-
3 Years
3
-
5 Years
More Than
5 Years
(In thousands)
Contractual Obligations
Capital lease obligations
$
111
$
93
$
18
$
—
$
—
Operating lease obligations
19,205
3,823
8,348
4,955
2,079
Unrecognized tax benefits
1,766
1,766
—
—
—
Purchase obligations
(1)
7,529
6,373
1,156
—
—
Total contractual obligations
$
28,611
$
12,055
$
9,522
$
4,955
$
2,079
(1)
Purchase obligations include commitments under non
-
cancelable marketing agreements, license agreements, and third
-
party hosting
services.
60