Vistaprint 2014 Annual Report Download - page 48

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44
Contractual Obligations
Contractual obligations at June 30, 2014 are as follows:
In thousands
Payments Due by Period
Total
Less
than 1
year
1-3
years
3-5
years
More
than 5
years
Operating leases. . . . . . . . . . . . . . . . . . . . $ 50,469 $ 14,067 $ 13,801 $ 8,887 $ 13,714
Build-to-suit lease . . . . . . . . . . . . . . . . . . . 119,593 — 19,777 21,576 78,240
Purchase commitments . . . . . . . . . . . . . . 30,860 30,860 — — —
Debt and interest payments . . . . . . . . . . . 481,082 47,718 79,781 353,583 —
Capital leases . . . . . . . . . . . . . . . . . . . . . . 9,197 4,572 4,148 477 —
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,628 9,507 16,374 6,747 —
Total (1). . . . . . . . . . . . . . . . . . . . . . . . . . . $ 723,829 $ 106,724 $ 133,881 $ 391,270 $ 91,954
___________________
(1) We may be required to make cash outlays related to our uncertain tax positions. However, due to the uncertainty of the timing of future cash
flows associated with our uncertain tax positions, we are unable to make reasonably reliable estimates of the period of cash settlement, if
any, with the respective taxing authorities. Accordingly, uncertain tax positions of $6.7 million as of June 30, 2014 have been excluded from
the contractual obligations table above. For further information on uncertain tax positions, see Note 14 to the accompanying consolidated
financial statements.
Operating Leases. We rent office space under operating leases expiring on various dates through 2024.
Future minimum rental payments required under our leases are an aggregate of approximately $50.5 million. The
terms of certain lease agreements require security deposits in the form of bank guarantees and a letter of credit in
the amount of $0.1 million and $1.4 million, respectively.
Build-to-suit lease. 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, that is expected to commence in the second
half of calendar 2015. Please refer to Note 6 in the accompanying consolidated financial statements for additional
details.
Purchase Commitments. At June 30, 2014, we had unrecorded commitments under contract of $30.9
million, which were composed of inventory purchase commitments of approximately $12.0 million, production and
computer equipment purchases of approximately $9.6 million, and other unrecorded purchase commitments of $9.3
million.
Debt. The term loans outstanding under our credit agreement have repayments due on various dates
through February 8, 2018, with the revolving loans due on February 8, 2018. Interest payable included in this table
is based on the interest rate as of June 30, 2014 and assumes all revolving loan amounts outstanding will not be
paid until maturity, but that the term loan amortization payments will be made according to our defined schedule.
Capital leases. We lease certain machinery and plant equipment under capital lease agreements that
expire at various dates through 2017. The aggregate carrying value of the leased equipment under capital leases
included in property, plant and equipment, net in our consolidated balance sheet at June 30, 2014, is $12.6 million,
net of accumulated depreciation of $1.0 million; the present value of lease installments not yet due included in other
current liabilities and other liabilities in our consolidated balance sheet at June 30, 2014 amounts to $8.9 million.
Other Obligations. Other obligations include an installment obligation of $16.6 million 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, 2014. Other obligations
also include the fair value of the contingent earn-out payments related to our fiscal 2014 acquisitions of People &
Print Group and Pixartprinting of $16.1 million. The Pixartprinting liability is based on calendar 2014 revenue and
EBITDA targets and is payable in the third quarter of fiscal 2015. The People & Print Group liability is payable during
the third quarter of fiscal 2016 and is contingent upon the achievement of an initial 2014 EBITDA margin threshold
but ultimately payable based on achieving certain revenue and EBITDA results for calendar year 2015. Please refer
to Note 8 in the accompanying consolidated financial statements for additional details.