Autodesk 2014 Annual Report Download - page 128

2013 Annual Report
2014 Form 10-K 54
On November 7, 2013, we entered into a definitive agreement with the shareholders of Delcam plc (“Delcam”) to acquire
the entire issued and to be issued share capital for £20.75 per share, or approximately £174.6 million or $284.6 million. The
transaction closed on February 6, 2014. Other than the Delcam acquisition, as of January 31, 2014, there have been no material
changes in our contractual obligations or commercial commitments compared to those disclosed in Management’s Discussion
and Analysis of Financial Condition.
Our cash, cash equivalent and marketable securities balances are concentrated in a few locations around the world, with
substantial amounts held outside of the U.S. As of January 31, 2014, approximately 75% of our total cash, cash equivalents and
marketable securities are located offshore and will fluctuate subject to business needs. Certain amounts held outside the U.S.
could be repatriated to the U.S. (subject to local law restrictions), but under current U.S. tax law, could be subject to U.S.
income taxes less applicable foreign tax credits. We have provided for the U.S. income tax liability on foreign earnings, except
for foreign earnings that are considered permanently reinvested outside the U.S. Our intent is that amounts related to foreign
earnings permanently reinvested outside the U.S. will remain outside the U.S. and we will meet our U.S. liquidity needs
through ongoing cash flows, external borrowings, or both. We regularly review our capital structure and consider a variety of
potential financing alternatives and planning strategies to ensure we have the proper liquidity available in the locations in which
it is needed and to fund our existing stock buy-back program with cash that has not been permanently reinvested outside the
U.S.
Cash from operations could also be affected by various risks and uncertainties, including, but not limited to the risks
detailed in Part I, Item 1A titled “Risk Factors.” However, based on our current business plan and revenue prospects, we believe
that our existing balances, our anticipated cash flows from operations and our available credit facility will be sufficient to meet
our working capital and operating resource expenditure requirements for at least the next 12 months.
Our revenue, earnings, cash flows, receivables and payables are subject to fluctuations due to changes in foreign currency
exchange rates, for which we have put in place foreign currency contracts as part of our risk management strategy. See Part II,
Item 7A, “Quantitative and Qualitative Disclosures about Market Risk” for further discussion.
Contractual Obligations
The following table summarizes our significant financial contractual obligations at January 31, 2014 and the effect such
obligations are expected to have on our liquidity and cash flows in future periods.
Total Fiscal 2015
Fiscal Years
2016-2017
Fiscal Years
2018-2019 Thereafter
(in millions)
Notes $ 892.0 $ 20.4 $ 40.8 $ 432.0 $ 398.8
Operating lease obligations 239.9 53.1 86.5 61.8 38.5
Purchase obligations 65.3 48.9 16.4 — —
Deferred compensation obligations 38.9 4.5 7.9 4.5 22.0
Pension obligations 21.2 2.6 4.5 4.3 9.8
Other obligations (1) 10.1 5.6 0.5 2.6 1.4
Total (2) $ 1,267.4 $ 135.1 $ 156.6 $ 505.2 $ 470.5
____________________
(1) Other obligations include asset retirement obligations.
(2) This table generally excludes amounts already recorded on the balance sheet as current liabilities, certain purchase obligations as
discussed below, long term deferred revenue and amounts related to income tax liabilities for uncertain tax positions, since we cannot
predict with reasonable reliability the timing of cash settlements to the respective taxing authorities (see Note 4, “Income Taxes” to the
Notes to Consolidated Financial Statements).
Notes consist of the Senior Notes issued in December 2012. The Senior Notes consist of of $400.0 million aggregate
principal amount of 1.95% senior notes due December 15, 2017 notes and $350.0 million aggregate principal amount of 3.6%
senior notes due December 15, 2022.
Operating lease obligations consist primarily of obligations for facilities, net of sublease income, computer equipment
and other equipment leases.