Shutterfly 2015 Annual Report Download - page 96

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At December 31, 2015, the total future minimum payments under non-cancelable operating and capital
leases are as follows (in thousands):
Operating
Leases
Capital
Leases
Year Ending:
2016 ................................................................ $ 8,606 $ 16,147
2017 ................................................................ 6,939 15,879
2018 ................................................................ 3,316 15,044
2019 ................................................................ 1,120 11,214
2020 ................................................................ 814 3,957
Thereafter ........................................................... 1,752 1,487
Total minimum lease payments .......................................... $ 22,547 $ 63,728
Less: amount representing interest ........................................ (5,210)
Present value of future minimum lease payments ............................. 58,518
Less: current portion ................................................... (14,090)
Non-current portion of capital lease obligations .............................. $ 44,428
Purchase obligations consist of non-cancelable marketing and service agreements and co-location services
that expire at various dates through the year 2020. As of December 31, 2015, the Company’s purchase
obligations totaled $88.8 million. At December 31, 2015, the total future minimum payments under these
purchase obligations are as follows (in thousands):
Year Ending:
2016 ........................................................................... $ 24,131
2017 ........................................................................... 21,434
2018 ........................................................................... 16,558
2019 ........................................................................... 15,346
2020 ........................................................................... 11,334
Thereafter ....................................................................... —
Total minimum purchase obligations .................................................. $ 88,803
Build-to-suit Lease
During the year ended December 31, 2012, the Company executed a lease for a 300,000 square foot east
coast production and customer service facility in Fort Mill, South Carolina. This facility replaced the Company’s
current east coast production facility in Charlotte, North Carolina. In order for the facility to meet the Company’s
operating specifications, both the landlord and the Company made structural changes as part of the uplift of the
building, and as a result, the Company has concluded that it was the “deemed owner” of the building (for
accounting purposes only) during the construction period. Accordingly, at lease inception, the Company recorded
an asset of $4.9 million, representing its estimate of the fair market value of the building, and a corresponding
construction financing obligation, recorded as a component of other non-current liabilities. The Company
increased the asset and financing obligations by $3.1 million and $1.5 million for building uplift costs incurred
by the landlord during 2013 and 2012, respectively.
During the year ended December 31, 2013, the Company executed a lease for a 217,000 square foot
production facility in Shakopee, Minnesota. This facility provides additional production capacity. Both the
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