Vistaprint 2013 Annual Report Download - page 84

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81
16. Commitments and Contingencies
Operating Lease Commitments
We are committed under operating leases for our facilities that expire on various dates through 2024. Total
lease expense for the years ended June 30, 2013, 2012 and 2011 was $11,720, $10,083 and $8,221, respectively.
Future minimum payments required under operating leases for the next five fiscal years and thereafter are
as follows at June 30, 2013:
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,708
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,239
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,584
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,863
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,390
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,218
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 53,002
The terms of certain lease agreements require security deposits in the form of bank guarantees and a letter
of credit in the amount of $1,757 and $2,144, respectively. In addition, we provided a customary indemnification to
the lessor for certain claims that may arise under the lease for which we have not recorded a liability as we have
determined that the associated fair value is not material. We carry insurance policies that we believe would provide,
in most cases, some, if not total, recourse to any claims arising from this lease indemnification provision. In July
2013, we executed a lease for an eleven year term to move our Lexington, Massachusetts operations to a new
facility in Waltham, Massachusetts, commencing in the second half of calendar 2015. The table above includes the
lease payments associated with our current lease but no future lease payments associated with the new facility as
the lease was not effective as of June 30, 2013.
Purchase Obligations
At June 30, 2013, we had unrecorded commitments under contract of $39,569, which were principally
composed of inventory purchase commitments of approximately $13,304, production and computer equipment
purchases of approximately $11,180, various facility expansion and improvement projects of $5,130, and other
unrecorded purchase commitments of $9,955.
Other Obligations
We have an outstanding installment obligation of $19,750 related to the fiscal 2012 intra-entity transfer of
Webs' Intellectual Property, which results in tax being paid over a 7.5 year term and has been classified as a
deferred tax liability in our consolidated balance sheet as of June 30, 2013. In addition, we have a $5,000 funding
obligation associated with our investment in Namex payable on or before October 1, 2013.
Legal Proceedings
We are not currently party to any material legal proceedings. Although we cannot predict with certainty the
results of litigation and claims to which we may be subject from time to time, we do not expect the resolution of any
of our current matters to have a material adverse impact on our consolidated results of operations, cash flows or
financial position. In all cases, at each reporting period, we evaluate whether or not a potential loss amount or a
potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that
addresses accounting for contingencies. We expense the costs relating to our legal proceedings as those costs are
incurred.
Form 10-K