Vistaprint 2008 Annual Report Download - page 59

Contractual Obligations
Contractual obligations at June 30, 2008 are as follows:
Payments Due by Period
Total
Less
than 1
year
1-3
years
3-5
years
More
than 5
years
(In thousands)
Long-term Debt Obligations (1) ................. $22,811 $3,304 $14,278 $ 788 $ 4,441
Operating Lease Obligations ................... 52,824 5,576 11,804 11,954 23,490
Total (2) ...................................... $75,635 $8,880 $26,082 $12,742 $27,931
(1) Long-term debt obligations exclude amounts payable for interest.
(2) We may be required to make cash outlays related to our unrecognized tax benefits. However, due to
the uncertainty of the timing of future cash flows associated with our unrecognized tax benefits, we are
unable to make reasonably reliable estimates of the period of cash settlement, if any, with the
respective taxing authorities. Accordingly, unrecognized tax benefits of $0.9 million as of June 30, 2008
have been excluded from the contractual obligations table above. For further information on
unrecognized tax benefits, see Note 10 to the consolidated financial statements included in this Report.
Long-Term Debt. In November 2003, VistaPrint B.V., our Dutch subsidiary, entered into a
5.0 million euro revolving credit agreement with ABN AMRO Bank N.V., a Netherlands based bank.
The borrowings were used to finance the construction of our printing facility located in Venlo, the
Netherlands. The loan is secured by a mortgage on the land and building and is payable in quarterly
installments of 62,500 euros ($98,700 at June 30, 2008), beginning on October 1, 2004 and continuing
through 2024. Prior to April 1, 2006, interest on the loan accrued at a rate equal to a EURIBOR rate
plus 1.15%. On April 1, 2006, we elected a fixed rate option and the interest rate was fixed at 5.20%
through April 1, 2016, at which time the rate will be reset. At June 30, 2008, there was $6.4 million
outstanding under this credit agreement.
In November 2004, VistaPrint B.V. amended the existing credit agreement with ABN AMRO to include
an additional 1.2 million euro loan. The borrowings were used to finance a new printing press for the Venlo
printing facility. The loan is secured by the printing press and is payable in quarterly installments of 50,000
euros ($78,900 at June 30, 2008), beginning on April 1, 2005 and continuing through 2011. Prior to April 1,
2006, interest on the loan accrued at a EURIBOR rate plus 1.40%. On April 1, 2006, we elected a fixed rate
option and the interest rate was fixed at 5.10% over the remaining term of the loan. At June 30, 2008, there
was $0.9 million outstanding under this amendment to the credit agreement.
The credit agreement with ABN AMRO requires us to cause VistaPrint B.V. to maintain tangible net
worth at a minimum of 30% of VistaPrint B.V.’s adjusted balance sheet and restricts VistaPrint B.V.’s ability
to incur additional indebtedness. VistaPrint B.V. was in compliance with all loan covenants at June 30,
2008. There are no restrictions in the credit agreement on VistaPrint B.V.’s ability to pay dividends.
In November 2004, VistaPrint North American Services Corp., our Canadian production subsidiary,
entered into an $11.0 million credit facility with Comerica Bank—Canada. The borrowings were used to
finance new printing equipment purchases and the construction of a printing facility located in Windsor,
Ontario, Canada. The loan is secured by guarantees from VistaPrint Limited and two of our subsidiaries
and is payable in monthly installments beginning November 1, 2005 and continuing through 2009, plus
interest. Interest on the equipment loan was based, at our election at the beginning of the applicable
period, on a LIBOR rate plus 2.75% or Comerica’s prime rate. Interest on the construction loan was
based, at our election at the beginning of the applicable period, on a LIBOR rate plus 1.75% or
Comerica’s prime rate less 1.00%. On December 1, 2005, the interest rates for the equipment term loan
and the construction loan were fixed at 6.47% and 6.37%, respectively, over the remaining terms of the
loan. At June 30, 2008, there was $7.6 million outstanding under this credit facility.
Form 10-K
55