Autodesk 2001 Annual Report Download - page 43

40 FY 01 Autodesk, Inc.
Summarized financial information for Buzzsaw, which ended their fiscal year on December 31, 2000, is as follows:
(in thousands)
As of December 31, 2000
Current assets $ 30,791
Non-current assets 19,123
Current liabilities 9,141
Non-current liabilities 2,268
Redeemable convertible preferred stock 98,560
Net assets 38,505
Fiscal year ended December 31, 2000
Net revenues $ 5,354
Cost of sales 14,461
Loss from operations 50,898
Net loss attributable to common stockholders 54,455
Note 6. Minority Interest—RedSpark, Inc.
(“RedSpark”)
In April 2000, Autodesk formed RedSpark. In October 2000,
RedSpark received $14.0 million of third party venture
funding. Autodesk currently maintains a majority interest
in RedSpark, and consolidates RedSpark’s financial posi-
tion and results of operations.
The minority interest at January 31, 2001 represents equity
funding received by RedSpark from third party investors,
net of allocated losses for the period October 2000
through January 2001.
Note 7. Borrowing Arrangements
Autodesk has a U.S. line of credit permitting short-term
unsecured borrowings of up to $75.0 million, which may
be used from time to time for working capital or other
business needs. At January 31, 2001, there were no bor-
rowings outstanding under this agreement, which expires
in January 2002.
Note 8. Commitments and Contingencies
Autodesk leases office space and computer equipment
under noncancelable operating lease agreements. The
leases generally provide that Autodesk pay taxes, insur-
ance and maintenance expenses related to the leased
assets. Future minimum lease payments for fiscal years
ended January 31 are as follows: $29.3 million in 2002;
$27.2 million in 2003; $21.7 million in 2004; $19.0 million
in 2005; $16.9 million in 2006; and $18.9 million thereafter.
Rent expense was $31.8 million in fiscal 2001, $30.2 million
in fiscal 2000 and $25.7 million in fiscal 1999.
Autodesk is a party to various legal proceedings arising
from the normal course of business activities. In manage-
ment’s opinion, resolution of these matters is not
expected to have a material adverse impact on Autodesk’s
consolidated results of operations or its financial position.
However, depending on the amount and timing, an unfa-
vorable resolution of a matter could materially affect
Autodesk’s future results of operations or cash flows in a
particular period.
Note 9. Stockholders’ Equity
Preferred Stock
Under Autodesk’s Certificate of Incorporation, 2.0 million
shares of preferred stock are authorized. At January 31,
2001, there were no preferred shares issued or outstand-
ing. The Board of Directors has the authority to issue the
preferred stock in one or more series and to fix rights, pref-
erences, privileges and restrictions, including dividends,
and the number of shares constituting any series or the
designation of such series, without any further vote or
action by the stockholders.
Common Stock Repurchase Programs
Autodesk repurchased and retired 9.2 million shares in
fiscal 2001 at an average repurchase price of $38.96 per
share, 2.9 million shares in fiscal 2000 at an average price
of $31.11, and 1.2 million shares in fiscal 1999 at an aver-
age price of $39.34. The primary purpose of the stock
repurchase programs was to help offset the dilution to
earnings per share causedby the issuance of stock under
Autodesk’s employee stock plans.
Between November 1999 and March 2001, the Board of
Directors approved plans to repurchase a total of
22.0 million common shares. Of these 22.0 million shares,