Vistaprint 2006 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2006 Vistaprint annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 102

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102

Table of Contents VISTAPRINT LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Years Ended June 30, 2006, 2005 and 2004
(in thousands, except share and per share data)
June 30,
2006 2005
Long−lived assets:
Bermuda $ 5,006 $ 4,272
Netherlands 18,086 14,535
Canada 29,168 13,587
United States 2,652 1,792
Jamaica 1,482 890
Total $ 56,394 $35,076
14. Commitments and Contingencies
Operating Lease Commitments
The Company rents office space under operating leases expiring on January 31, 2007, April 30, 2007 and April 30, 2009. Total rent
expense for the years ended June 30, 2006, 2005 and 2004 were $1,324, $1,283, and $1,150, respectively. Sublease income received for the
years ended June 30, 2006, 2005 and 2004 were $181, $140 and $96, respectively.
Future minimum rental payments required under operating leases for the next five fiscal years and thereafter are as follows at June 30,
2006:
2007 $1,192
2008 240
2009 200
Total $1,632
The Company executed a lease in April 2003 related to the Company’s office facility in Lexington, Massachusetts, pursuant to which the
Company provided a customary indemnification to the lessor for certain claims that may arise under the lease. A maximum obligation is not
explicitly stated, thus the potential amount of future maximum payments that might arise under this indemnification obligation cannot be
reasonably estimated. The Company has not experienced any prior claims against similar lease indemnifications in the past and management has
determined that the associated fair value of the liability is not material. As such, the Company has not recorded any liability for this indemnity in the
accompanying consolidated financial statements. The Company does, however, accrue for losses for any known contingent liability, including
those that may arise from indemnification provisions, when future payment is both reasonably estimable and probable. The Company carries
specific and general liability insurance policies, which the Company believes would provide, in most cases, some, if not total, recourse to any
claims arising from this lease indemnification provision.
Guarantees and Indemnification Obligations
The Company has entered into arrangements with financial institutions and vendors to provide guarantees for the obligations of the
Company’s 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 the Company’s subsidiaries under such
arrangements are reflected in the Company’s consolidated financial statements and these notes.
82