Vistaprint 2011 Annual Report Download - page 50

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Form 10-K
General and administrative expense
General and administrative expense consists primarily of general corporate costs, including
third-party professional fees, insurance and payroll and related expenses of employees involved in
executive management, finance, legal, and human resources.
The increase in our general and administrative expenses of $12.6 million for fiscal 2011 as
compared to fiscal 2010 was primarily due to increased payroll and facility-related costs of
$12.8 million resulting from the continued investment in our general and administrative organizations
to support our expansion and growth. At June 30, 2011, we employed 267 employees in these
organizations compared to 199 employees at June 30, 2010. These increases were offset by
decreased third-party professional fees of $0.8 million during fiscal 2011 as compared to fiscal 2010
due primarily to the completion of our change of domicile to the Netherlands and decreased costs of
ongoing litigation and other general and administrative activities.
The increase in our general and administrative expenses of $15.8 million for fiscal 2010 as
compared to fiscal 2009 was primarily due to increased payroll and benefit costs of $8.0 million
resulting from the continued growth of our executive management, finance, legal and human resource
organizations to support our expansion and growth, and increased third-party professional fees of
$5.6 million related to ongoing litigation, the execution of our change of domicile to the Netherlands,
and other general and administrative activities including recruitment. At June 30, 2010, we employed
199 employees in these organizations compared to 141 employees at June 30, 2009. The increase in
headcount has resulted in an increase in allocated overhead of $1.1 million as compared to fiscal
2009.
Interest income
Interest income, which consists of interest earned on cash, cash equivalents and marketable
securities, was $0.4 million, $0.4 million and $1.7 million during fiscal 2011, 2010 and 2009,
respectively. The decrease in interest income is attributable to the decline in interest rates on a
year-over-year basis, partially offset by higher levels of interest bearing assets.
Other expense, net
Other expense, net, which primarily consists of gains and losses from currency transactions or
revaluation and realized gains and losses related to our marketable securities, was $2.2 million,
$1.5 million, and $0.8 million for fiscal 2011, 2010 and 2009, respectively. Increases in other expense,
net are primarily due to currency exchange rate fluctuations on transactions or balances denominated
in currencies other than the functional currency of our subsidiaries.
Interest expense
Interest expense, which consists of interest and penalties, if any, paid to financial institutions on
outstanding balances on our credit facilities, was $0.2 million, $0.8 million, and $1.4 million in fiscal
2011, 2010, and 2009, respectively. The decrease in interest expense from the prior-year periods was
due to a decrease in the outstanding principal on our bank loans including payment of the remaining
balances of our amended Canadian credit agreement during fiscal 2011 and our Euro revolving credit
agreement and original Canadian credit agreement in fiscal 2010.
47