Vistaprint 2008 Annual Report Download - page 81

VISTAPRINT LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Years Ended June 30, 2008, 2007 and 2006
(in thousands, except share and per share data)
4. Property, Plant and Equipment
Property, plant and equipment consist of the following:
June 30,
2008 2007
Land and land improvements .............................................. $ 10,746 $ 4,945
Building and building improvements ........................................ 43,228 21,265
Computer software and equipment ......................................... 23,137 16,739
Furniture, fixtures and office equipment ..................................... 6,474 4,150
Leasehold improvements.................................................. 2,740 1,237
Machinery and print production equipment .................................. 93,738 62,250
Construction in progress .................................................. 13,567 16,540
193,630 127,126
Less: accumulated depreciation............................................ (39,110) (20,934)
$154,520 $106,192
At June 30, 2008, construction in progress consisted mainly of expenditures related to the
purchase of production equipment for the Company’s Canadian and Dutch printing facilities and
expansion of the Canadian facility. At June 30, 2007, construction in progress consisted mainly of
expenditures related to the purchase of production equipment for the Canadian and Dutch facilities and
expansion of the Dutch facility. Depreciation expense totaled $20,348, $11,568 and $5,388 for the
years ended June 30, 2008, 2007 and 2006, respectively.
5. Long-Term Debt
In November 2003, VistaPrint B.V., the Company’s Dutch subsidiary, entered into a 5,000 euro
revolving credit agreement (the “Credit Agreement”) with ABN AMRO Bank N.V., a Dutch based bank.
The borrowings were used to finance the construction of the Company’s printing facility located in
Venlo, the Netherlands. The Company had $6,413 and $5,837 outstanding under the Credit
Agreement as of June 30, 2008 and 2007, respectively. The loan is secured by a mortgage on the land
and building and is payable in quarterly installments beginning on October 1, 2004 through 2024 of 63
euros ($99 and $85 at June 30, 2008 and 2007, respectively). On April 1, 2006, the Company 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.
In November 2004, VistaPrint B.V. amended the Credit Agreement to include an additional 1,200
euro loan. The borrowings were used to finance a new printing press at the Venlo printing facility. This
resulted in the Company having an additional $868 and $1,015 outstanding under the Credit
Agreement as of June 30, 2008 and 2007, respectively. This additional loan is secured by the printing
press and is payable in quarterly installments beginning on April 1, 2005 through 2011 of 50 euros ($79
and $68 at June 30, 2008 and 2007, respectively). On April 1, 2006, the Company elected a fixed rate
option and the interest rate was fixed at 5.10% over the remaining term of the loan.
The Credit Agreement with ABN AMRO requires the Company to cause VistaPrint B.V. to
maintain tangible net worth at a minimum of 30% of VistaPrint B.V.’s adjusted balance sheet and
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Form 10-K