Autodesk 2014 Annual Report Download - page 160

2013 Annual Report
2014 Form 10-K 86
7. Borrowing Arrangements
In December 2012, Autodesk 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"). Autodesk received net proceeds of $739.3 million from issuance of the Senior Notes, net of a discount of $4.5 million
and issuance costs of $6.1 million. Both the discount and issuance costs are being amortized to interest expense over the
respective terms of the Senior Notes using the effective interest method. In the fourth quarter of fiscal 2013, Autodesk used a
portion of the proceeds to re-pay the outstanding balance of the credit facility. The remaining proceeds from the Senior Notes
are available for general corporate purposes. Autodesk may redeem the Senior Notes at any time, subject to a make whole
premium. In addition, upon the occurrence of certain change of control triggering events, Autodesk may be required to
repurchase the Senior Notes, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the date of
repurchase. The Senior Notes contain restrictive covenants that limit our ability to create certain liens, to enter into certain sale
and leaseback transactions and to consolidate or merge with, or convey, transfer or lease all or substantially all of our assets,
subject to significant qualifications and exceptions. Based on quoted market prices, the fair value of the Senior Notes was
approximately $738.0 million as of January 31, 2014.
Autodesk’s line of credit facility permits unsecured short-term borrowings of up to $400.0 million with an option to
request an increase in the amount of the credit facility by up to an additional $100.0 million, and is available for working capital
or other business needs. This credit agreement contains customary covenants that could restrict the imposition of liens on
Autodesk’s assets, and restrict the Company’s ability to incur additional indebtedness or make dispositions of assets if Autodesk
fails to maintain the financial covenants. The line of credit is syndicated with various financial institutions, including Citibank,
N.A., an affiliate of Citigroup, which is one of the lead lenders and an agent. In May 2013, Autodesk amended and restated the
credit agreement extending the facility's maturity date from May 2016 to May 2018 and reducing facility fees and lowering
borrowing costs by aligning margins with our recent public investment grade credit ratings. At January 31, 2014 and
January 31, 2013, Autodesk had no outstanding borrowings on this line of credit.
8. Commitments and Contingencies
Lease commitments
Autodesk leases office space and computer equipment under non-cancellable operating lease agreements that expire at
various dates through fiscal 2024. The leases generally provide that Autodesk pay taxes, insurance and maintenance expenses
related to the leased assets. Certain of these lease arrangements contain escalation clauses whereby monthly rent increases over
time. At January 31, 2014, the aggregate future minimum lease payments required were as follows:
2015 $ 53.1
2016 47.0
2017 39.5
2018 35.7
2019 26.1
Thereafter 38.5
239.9
Less: Sublease income 2.9
$ 237.0
Rent expense related to these operating leases recognized on a straight-line basis over the lease period, was as follows:
Fiscal Year Ended January 31,
2014 2013 2012
Rent expense $ 50.2 $ 56.1 $ 53.0