Vistaprint 2012 Annual Report Download - page 84

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80
13. Commitments and Contingencies
Operating Lease Commitments
We are committed under operating leases for facilities expiring on various dates through 2018. Total lease
expense for the years ended June 30, 2012, 2011 and 2010 was $10,083, $8,221 and $7,395, respectively.
Future minimum payments required under operating leases for the next five fiscal years and thereafter are
as follows at June 30, 2012:
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,929
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,099
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,359
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,970
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,565
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,968
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 49,890
Vistaprint USA, Incorporated’s office space lease requires a security deposit in the form of a letter of credit
in the amount of $364, which is classified as restricted cash and is included in other assets in the consolidated
balance sheet. In addition, we provided a customary indemnification to the lessor for certain claims that may arise
under the lease for which we have not recorded a liability as we have determined that the associated fair value is
not material. We carry insurance policies that we believe would provide, in most cases, some, if not total, recourse
to any claims arising from this lease indemnification provision.
Other Obligations
We have also entered into arrangements with financial institutions and vendors to provide guarantees for
the obligations of our subsidiaries under banking arrangements and purchase contracts. The guarantees vary in
length of time but, in general, guarantee the financial obligations of the subsidiaries under such arrangements. The
financial obligations of our subsidiaries under such arrangements are reflected in our consolidated financial
statements and these notes.
We enter into agreements in the ordinary course of business with, among others, vendors, lessors, financial
institutions, service providers, distributors and certain marketing customers, pursuant to which it has agreed to
indemnify the other party for certain matters, such as property damage, personal injury, acts or omissions by us, our
employees, agents or representatives, or third party claims alleging that our intellectual property infringes a patent,
trademark or copyright.
In accordance with our articles of association and with various indemnification agreements with specific
employees, we have agreed to indemnify our directors, executive officers and employees, to the extent legally
permissible, against all liabilities reasonably incurred in connection with any action in which the individual may be
involved by reason of such individual being or having been a director, officer or employee of any company within the
Vistaprint group of companies.
Based upon our historical experience and information known to us as of June 30, 2012, we believe our
liability with respect to the above guarantees and indemnities at June 30, 2012 is immaterial.
Purchase Obligations
At June 30, 2012, we had unrecorded commitments under contract of $40,182, which were principally
composed of the site development and construction for the expansion of our Venlo, the Netherlands manufacturing
facility and our Jamaican customer service, sales and design support centers of approximately $17,971 and $5,896,