Vistaprint 2010 Annual Report Download - page 59

Form 10-K
Investing Activities. Cash used in investing activities in fiscal 2010 of $123.9 million was
attributable primarily to capital expenditures of $101.3 million, purchases of marketable securities of
$9.8 million, the purchase of Soft Sight, net of cash acquired, for $6.5 million, capitalized software and
website development costs of $6.5 million, offset by proceeds from the sale of equipment of
$0.2 million, and maturities of marketable securities of $0.1 million. Capital expenditures of
$61.7 million were related to purchase of land and facilities, $23.1 million were related to the purchase
of manufacturing equipment for our production facilities, and $16.5 million were related to purchases
of other assets including information technology infrastructure and office equipment.
Cash used in investing activities in fiscal 2009 of $57.6 million was attributable primarily to
capital expenditures of $76.3 million and by capitalized software and website development costs of
$7.2 million, offset by net sales of marketable securities of $25.9 million. Capital expenditures of
$30.9 million were related to the purchase of production equipment for our printing facilities,
$34.9 million were related to construction and land acquisition costs at our production facilities and
$10.5 million were related to purchases of information technology and facility related assets.
Financing Activities. Cash provided by financing activities in fiscal 2010 of $1.3 million was
primarily attributable to the issuance of ordinary shares pursuant to share option exercises of
$15.0 million and tax benefits derived from shared-based compensation awards of $6.3 million. This
was offset by payments in connection with our loan agreements of $13.8 million, including the final
balloon payment on our original Canadian credit agreement of $6.0 million and payment of the
remaining principal balance of the euro revolving credit agreement in the Company’s Dutch subsidiary
in the amount of $5.9 million. We also used $6.1 million to pay minimum withholding taxes related to
the vesting of restricted share units (“RSUs”) granted and ordinary shares withheld under our equity
incentive plans.
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 RSUs granted under our equity incentive plans, partially offset by the issuance of ordinary
shares pursuant to share option exercises of $12.1 million and $9.6 million of tax benefits derived
from share-based compensation awards.
Contractual Obligations
Contractual obligations at June 30, 2010 are as follows:
In thousands
Total
Less
than 1
year
1-3
years
3-5
years
More
than 5
years
Payments Due by Period
Debt obligations (1) . . . . . . . . . $ 5,222 $ 5,222 $ — $ — $ —
Operating lease obligations . . . . 46,155 7,170 13,528 13,187 12,270
Total (2) . . . . . . . . . . . . . . . . . . $ 51,377 $ 12,392 $ 13,528 $ 13,187 $ 12,270
(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
$2.3 million as of June 30, 2010 have been excluded from the contractual obligations table
above. For further information on unrecognized tax benefits, see Item 8 of Part II, “Financial
Statements and Supplementary Data—Note 10—Income Taxes.”
55