Vistaprint 2013 Annual Report Download - page 74

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71
9. Accrued Expenses
Accrued expenses included the following:
June 30,
2013 June 30,
2012
Compensation costs (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 43,879 $ 32,513
Advertising costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,824 21,355
Income and indirect taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,463 12,402
Shipping costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,632 4,614
Purchases of property, plant and equipment (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,582 6,952
Professional costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,470 2,277
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,488 18,289
Total accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 103,338 $ 98,402
_____________________
(1) The increase in accrued compensation costs is principally as result of our expansion in headcount and the associated increase in salary,
bonus and benefit related costs.
(2) The decrease in accrued purchases of property, plant and equipment is due to the completion of our expansion efforts in several of our
locations, most notably Montego Bay, Jamaica and Venlo, the Netherlands.
10. Debt
On February 8, 2013, we entered into an amended and restated agreement, which we refer to as the
restated credit agreement, with a syndicate of lenders led by JPMorgan Chase Bank, N.A., as administrative agent,
which modifies the senior credit agreement dated as of October 21, 2011. During the quarter ended June 30, 2013,
we increased the loan commitments for revolving loans maturing on February 8, 2018 by adding new lenders and
eliminating loan commitments for revolving loans maturing October 21, 2016, which resulted in no impact to the
overall size or terms of the credit agreement, but ensured all commitments have an ultimate maturity of February 8,
2018. The restated credit agreement, as amended, consists of a secured credit facility to lend us an aggregate of
$498,750 as follows:
• Revolving loans of $400,000 with a maturity date of February 8, 2018; and
• A term loan of $98,750 amortizing over the loan period, with a final maturity date of February 8, 2018.
Up to $50,000 in borrowings may be made in Euro, Swiss Francs and such other non-United States Dollar
currencies as permitted by our lenders. The restated credit agreement also contains letter of credit and swingline
loan sublimits of $25,000 each. We have the option, so long as no default or event of default has occurred and is
continuing, to increase the loan commitments under the restated credit agreement. As of June 30, 2013, we may
increase the loan commitments by up to $165,000 by adding new commitments or increasing the commitment of
willing lenders. As of June 30, 2013 and June 30, 2012, our debt outstanding was $238,750 and $229,000,
respectively.
Under the terms of the Restated Credit Agreement, borrowings bear interest at a variable rate of interest
based on LIBOR plus 1.50% to 2.00% depending on our leverage ratio, which is the ratio of our consolidated total
indebtedness to our consolidated earnings before interest, taxes, depreciation and amortization (EBITDA). As of
June 30, 2013, the weighted-average interest rate on outstanding borrowings was 2.00%. We must also pay a
commitment fee on unused balances of 0.225% to 0.350% 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 June 30, 2013.
The restated credit agreement contains financial and other covenants, including but not limited to (1)
limitations on our incurrence of additional indebtedness and liens, the consummation of certain fundamental
organizational changes or intercompany activities, investments and restricted payments including the purchases of
Form 10-K