Vistaprint 2009 Annual Report Download - page 66

offset by net sales of marketable securities of $11.6 million. Capital expenditures of $23.8 million were
related to the purchase of production equipment for our Canadian and Dutch production facilities,
$22.0 million were related to construction and land acquisition costs at our printing facilities and $16.9
million were related to purchases of information technology and facility related assets.
Financing Activities. Cash used in financing activities in fiscal 2009 of $31.2 million was
primarily attributable to the repurchase of 2,554,302 common shares for $45.5 million, payments in
connection with our bank loans of $3.2 million and the use of $4.2 million to pay minimum withholding
taxes related to the vesting of restricted share units (RSUs) granted under our equity incentive plans,
partially offset by the issuance of common shares pursuant to share option exercises of $12.1 million
and $9.6 million of tax benefits derived from share based compensation.
Cash provided by financing activities in fiscal 2008 of $3.0 million was primarily attributable to the
issuance of common shares pursuant to share option exercises of $8.3 million and $1.3 million of tax
benefits derived from share-based compensation, offset by net payments in connection with our
equipment loan facilities of $3.3 million associated with the purchase of production assets for our
Canadian and Dutch printing facilities and the use of $3.4 million to pay minimum withholding taxes
related to the vesting of restricted share units (“RSUs”) granted under our equity incentive plans.
We do not have any off-balance sheet arrangements or relationships with unconsolidated entities
or financial partnerships, such as entities often referred to as structured finance or special purpose
entities, which are typically established for the purpose of facilitating off-balance sheet arrangements or
other contractually narrow or limited purposes.
Contractual Obligations
Contractual obligations at June 30, 2009 are as follows:
Payments Due by Period
Total
Less
than 1
year
1-3
years
3-5
years
More
than 5
years
(In thousands)
Debt obligations (1) .......................... $18,814 $ 8,349 $ 6,140 $ 706 $ 3,619
Operating lease obligations ................... 49,489 5,989 12,449 12,381 18,670
Total (2)..................................... $68,303 $14,338 $18,589 $13,087 $22,289
(1) 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 $1.4 million
as of June 30, 2009 have been excluded from the contractual obligations table above. For further
information on unrecognized tax benefits, see Note 9 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 production 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 euro ($88,000 at June 30, 2009), 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%
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