Autodesk 2014 Annual Report Download - page 100

2013 Annual Report
2014 Form 10-K 26
of personal information that they collect from consumers over the Internet, and more states may adopt similar legislation in the
future. Additionally, the Federal Trade Commission has used its authority under Section 5 of the Federal Trade Commission Act
to bring actions against companies for failing to maintain adequate security for personal information collected from consumers
over the Internet and for failing to comply with privacy-related representations made to Internet users. The U.S. Congress has at
various times proposed federal legislation intended to protect the privacy of Internet users and the security of personal
information collected from Internet users that would impose additional compliance burdens upon companies collecting personal
information from Internet users, and the U.S. Congress may adopt such legislation in the future. The European Union also has
adopted various directives regulating data privacy and security and the transmission of content using the Internet involving
residents of the European Union, including those directives known as the Data Protection Directive, the E-Privacy Directive,
and the Privacy and Electronic Communications Directive, and may adopt similar directives in the future. Several other
countries, including Canada and several Latin American and Asian countries, have constitutional protections for, or have
adopted legislation protecting, individuals' personal information. Additionally, some federal, state, or foreign governmental
bodies have established laws which seek to censor the transmission of certain types of content over the Internet or require that
individuals be provided with the ability to permanently delete all electronic personal information, such as the German
Multimedia Law of 1997.
Given the variety of global privacy and data protection regimes, it is possible we may find ourselves subject to
inconsistent obligations. For instance, the USA Patriot Act is considered by some to be in conflict with certain directives of the
European Union. Situations such as these require that we make prospective determinations regarding compliance with
conflicting regulations. Increased enforcement of existing laws and regulations, as well as any laws, regulations or changes that
may be adopted or implemented in the future, could limit the growth of the use of public cloud applications or communications
generally, result in a decline in the use of the Internet and the viability of Internet-based applications, and require
implementation of additional technological safeguards.
Our financial results could be negatively impacted if our tax positions are overturned by tax authorities.
We are a U.S.-based multinational company subject to tax in multiple U.S. and foreign tax jurisdictions. Our effective tax
rate is based on our expected geographic mix of earnings, statutory rates, intercompany transfer pricing, and enacted tax rules.
Significant judgment is required in determining our effective tax rate and in evaluating our tax positions on a worldwide basis.
We believe our tax positions, including intercompany transfer pricing policies, are consistent with the tax laws in the
jurisdictions in which we conduct our business. It is possible that these positions may be overturned by jurisdictional tax
authorities and may have a significant impact on our effective tax rate.
Our business could be adversely affected if we are unable to attract and retain key personnel.
Our success and ability to invest and grow depend largely on our ability to attract and retain highly skilled technical,
professional, managerial, sales and marketing personnel. Historically, competition for these key personnel has been intense. The
loss of services of any of our key personnel (including key personnel joining our company through acquisitions), the inability to
retain and attract qualified personnel in the future, or delays in hiring required personnel, particularly engineering and sales
personnel, could make it difficult to meet key objectives, such as timely and effective product introductions and financial goals.
We rely on third party technologies and if we are unable to use or integrate these technologies, our product and service
development may be delayed and our financial results negatively impacted.
We rely on certain software that we license from third parties, including software that is integrated with internally
developed software and used in our products to perform key functions. These third-party software licenses may not continue to
be available on commercially reasonable terms, and the software may not be appropriately supported, maintained or enhanced
by the licensors. The loss of licenses to, or inability to support, maintain and enhance any such software could result in
increased costs, or in delays or reductions in product shipments until equivalent software can be developed, identified, licensed
and integrated, which would likely harm our business.
Disruptions with licensing relationships and third party developers could adversely impact our business.
We license certain key technologies from third parties. Licenses may be restricted in the term or the use of such
technology in ways that negatively affect our business. Similarly, we may not be able to obtain or renew license agreements for
key technology on favorable terms, if at all, and any failure to do so could harm our business.