Other Balance Sheet Components

9 Months Ended

Mar. 31, 2023

Accrued expenses included the following:


	March 31, 2023		June 30, 2022
Compensation costs	$	71,649	$	78,521
Income and indirect taxes	50,839		41,886
Restructuring costs (1)	28,728		13,449
Advertising costs	24,074		25,925
Third party manufacturing and digital content costs	17,038		15,790
Interest payable (2)	13,563		2,477
Variable compensation incentives (3)	11,506		—
Shipping costs	11,060		10,228
Sales returns	6,602		6,286
Professional fees	3,278		2,394
Other	61,676		56,885
Total accrued expenses	$	300,013	$	253,841

______________________

(1) During the third quarter of fiscal 2023, we executed against a plan to reduce costs and implement organizational changes to support expanded profitability, reduced leverage, and increased speed, focus, and accountability. The impact of these cost reductions occurred within the Vista business and Cimpress central teams. Refer to Note 13 for additional details.

(2) The increase in interest payable as of March 31, 2023 is due to the interest on our 2026 Notes being payable semi-annually on June 15 and December 15 of each year. Refer to Note 8 for further detail.

(3) Includes cash-based employee long-term incentives, which are variable based on the performance of individual businesses and vest over four years. As the first potential payout will occur within one year, a portion of the balance is now classified as a current liability within accrued expenses.

Other current liabilities included the following:


	March 31, 2023		June 30, 2022
Current portion of finance lease obligations	$	8,990	$	6,684
Short-term derivative liabilities	8,020		4,299


Other (1)	4,814		17,052
Total other current liabilities	$	21,824	$	28,035

______________________

(1) The decrease is due in part to the payment of an acquisition-related liability associated with our Depositphotos acquisition of $6,785 that occurred during the third quarter of fiscal 2023.

Other liabilities included the following:


	March 31, 2023		June 30, 2022
Long-term finance lease obligations	$	28,129	$	14,699
Long-term derivative liabilities	4,799		463

Mandatorily redeemable noncontrolling interest (1)	13,113		—
Long-term compensation incentives	17,527		19,934
Other	24,359		29,298
Total other liabilities	$	87,927	$	64,394

______________________

(1) During the second quarter of fiscal year 2023, we reclassified the noncontrolling interest for three businesses in the PrintBrothers reportable segment to other liabilities, due to the exercise of a put option for a portion of the minority equity interests that triggered a mandatory redemption feature for the remaining minority equity interest. Refer to Note 10 for additional details.