SEC Filings

10-Q
CIMPRESS N.V. filed this Form 10-Q on 11/03/2017
Entire Document
 

Other Obligations
We have an outstanding installment obligation of $5,659 related to the fiscal 2012 intra-entity transfer of the intellectual property of our subsidiary Webs, Inc., 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 September 30, 2017. Other obligations also include a liability related to our fiscal 2016 WIRmachenDRUCK acquisition, payable in January 2018 of $46,316. Refer to Note 7 for additional discussion. In addition, we have deferred payments related to our other acquisitions of $4,588 in aggregate.
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.

14. Restructuring Charges

Restructuring costs include one-time employee termination benefits, acceleration of share-based compensation, and other related costs including third-party professional and outplacement services. We recognized restructuring charges of $854 during the three months ended September 30, 2017, of which, $727 related to a restructuring initiative within our All Other Businesses reportable segment and an additional $127 related to our prior January 2017 restructuring initiative. We do not expect any material charges to be incurred in future periods for either of these initiatives. There were no restructuring expenses incurred during the three months ended September 30, 2016.

The following table summarizes the restructuring activity during the three months ended September 30, 2017:
 
Severance and Related Benefits
 
Other Restructuring Costs
 
Total
Accrued restructuring liability as of June 30, 2017
$
4,602

 
$
208

 
$
4,810

Restructuring Charges
854

 

 
854

Cash payments
(3,926
)
 
(156
)
 
(4,082
)
Non-cash charges (1)
(103
)
 

 
(103
)
Accrued restructuring liability as of September 30, 2017
$
1,427

 
$
52

 
$
1,479

_____________________
(1) Non-cash charges include acceleration of share-based compensation expenses.
15. Subsequent Events

On November 1, 2017, we announced our Vistaprint business plans to reorganize its business, which will result in a reduction in headcount and other operating costs. These changes are intended to simplify operations and more closely align functions to increase the speed of execution. We expect to complete the majority of the changes during the second quarter of fiscal 2018. These planned actions are subject to mandatory consultations with employees, work councils and governmental authorities in certain jurisdictions. Based on a preliminary assessment of the potential action, we expect that these changes will result in a pre-tax restructuring charge during the second quarter of fiscal 2018 of approximately $15,000 to $17,000, including non-cash charges relating to share-based compensation of approximately $400. The actual timing and costs of the plan may differ from our current expectations and estimates.

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