Autodesk 2014 Annual Report Download - page 127

2013 Annual Report
2014 Form 10-K 53
stock repurchase program and invest in our growth initiatives, which include acquisitions of products, technology and
businesses. See further discussion of these items below.
At January 31, 2014, our principal sources of liquidity were cash, cash equivalents and marketable securities totaling
$2,544.4 million and net accounts receivable of $423.7 million.
In fiscal 2013, we issued $400.0 million aggregate principal amount of 1.95% senior notes due December 15, 2017 and
$350.0 million aggregate principal amount of 3.6% senior notes due December 15, 2022, (collectively, the "Senior Notes"). As
of March 10, 2014, we have $750.0 million aggregate principal amount of Senior Notes outstanding. In addition, we have a line
of credit facility that permits unsecured short-term borrowings of up to $400.0 million. As of March 10, 2014, we have no
amounts outstanding under the credit facility. We amended and restated the credit facility in May 2013. The amended and
restated credit facility expires in May 2018. Borrowings under the credit facility and the net proceeds from the offering of the
Senior Notes are available for general corporate purposes.
Our cash and cash equivalents are held by diversified financial institutions globally. Our primary commercial banking
relationship is with Citigroup and its global affiliates. In addition, Citibank N.A., an affiliate of Citigroup, is one of the lead
lenders and agent in the syndicate of our $400.0 million line of credit.
The increase in our cash, cash equivalents and marketable securities to $2,544.4 million at January 31, 2014 from
$2,365.4 million at January 31, 2013 is due to cash generated by operating activities, and proceeds from the issuance of
common stock following stock option exercises and employee stock plan purchases. These increases to cash, cash equivalents
and marketable securities are partially offset by cash used for repurchases of common stock, acquisitions including business
combination and technology purchases, capital expenditures, and other investing activities. The cash proceeds from issuance of
common stock varies based on our stock price, stock option exercise activity and the volume of employee purchases under the
Employee Stock Purchase Plan (“ESP Plan”).
The primary source for net cash provided by operating activities of $563.5 million for fiscal 2014 was net income of
$228.8 million increased by the effect of non-cash expenses totaling $261.1 million associated with depreciation, amortization,
accretion and stock-based compensation. In addition, net cash flow provided by changes in operating assets and liabilities was
$86.0 million. The primary source of working capital was a decrease in accounts receivable and an increase in deferred revenue
for fiscal 2014 compared to fiscal 2013. Our days sales outstanding in trade receivables was 66 at January 31, 2014 compared
to 74 at January 31, 2013. The days sales outstanding decrease relates primarily to improved billings linearity and strong cash
collections resulting in a lower accounts receivable balance compared to the prior year. The primary working capital uses of
cash were an increase in deferred income taxes.
At January 31, 2014, our short-term investment portfolio had an estimated fair value of $414.1 million and a cost basis of
$410.8 million. The portfolio fair value consisted of $261.0 million invested in commercial paper and corporate securities,
$42.7 million invested in agency bonds, $38.9 million invested in mutual funds, $37.1 million invested in time deposits with
remaining maturities at the date of purchase greater than 90 days and less than one year, $11.7 million invested in municipal
securities, $11.4 million invested in other short-term securities, and $11.3 million invested in U.S. government agency
securities.
At January 31, 2014, $38.9 million of trading securities were invested in a defined set of mutual funds as directed by the
participants in our Deferred Compensation Plan (see Note 6, “Deferred Compensation,” in the Notes to Consolidated Financial
Statements for further discussion).
Long-term cash requirements for items other than normal operating expenses are anticipated for the following: common
stock repurchases; the acquisition of businesses, software products, or technologies complementary to our business; and capital
expenditures, including the purchase and implementation of internal-use software applications.
Our strategy includes improving our product functionality and expanding our product offerings through internal
development as well as through the acquisition of products, technology and businesses. Acquisitions often increase the speed at
which we can deliver product functionality to our customers; however, they entail cost and integration challenges and, in certain
instances, negatively impact our operating margins. We continually review these trade-offs in making decisions regarding
acquisitions. We currently anticipate that we will continue to acquire products, technology and businesses as compelling
opportunities become available. Our decision to acquire businesses or technology is dependent on our business needs, the
availability of suitable sellers and technology, and our own financial condition.