Vistaprint 2011 Annual Report Download - page 72

Form 10-K
6. Accrued Expenses
Accrued expenses included the following:
2011 2010
June 30,
Compensation costs (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23,142 $ 16,263
Advertising costs (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,407 17,627
Income and indirect taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,427 12,403
Shipping costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,694 2,351
Professional costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,716 2,475
Purchases of property, plant and equipment (3) . . . . . . . . . . . . . . . . 1,236 7,129
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,367 7,361
Total accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 68,989 $ 65,609
(1) The increase in accrued compensation costs is principally a result of our expansion in headcount and the associated
increase in payroll and benefit related costs to support our growth.
(2) The increase in accrued advertising costs is principally a result of our increased customer acquisition and retention
promotion costs.
(3) The decrease in accrued purchases of property, plant and equipment is principally a result of the outstanding payments
due as of June 30, 2010 related to our Australia production facility that was completed and commenced production in June
2010.
7. Long-Term Debt
Long-term debt is summarized as follows:
2011 2010
June 30,
Amended Canadian credit agreement . . . . . . . . . . . . . . . . . . . . . . . $ — $ 5,222
Total long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ 5,222
In December 2005, we amended our original Canadian credit agreement to include an
additional $10,000 equipment term loan. The borrowings were used to finance printing equipment
purchases for the Windsor production facility. During the second quarter of fiscal 2011, the final
balloon payment on our amended Canadian credit agreement became due and was paid in full in the
amount of $4,667. We had no remaining long-term debt obligations outstanding as of June 30, 2011.
8. Shareholders’ Equity
Share repurchases
On November 9, 2010, we announced that our Supervisory Board authorized a repurchase of
up to an aggregate of $160,000 of our ordinary shares in open market or privately negotiated
transactions subject to the parameters set by our shareholders and Supervisory Board including a
limit that the repurchases cannot exceed 10% of our issued and outstanding ordinary shares as of
November 4, 2010, the date of our Annual General Meeting of Shareholders. We established a share
repurchase plan pursuant to Securities and Exchange Commission Rule 10b5-1 upon authorization of
the program to set the manner, timing, price and volume conditions. During fiscal 2011, we purchased
1,326,933 of our ordinary shares for a total cost of $56,935. Additionally, we have purchased
3,074,832 of our ordinary shares subsequent to June 30, 2011 and through August 12, 2011 for a
total cost of $91,088 bringing the total ordinary shares repurchased under the plan to 4,401,765 for a
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