Autodesk 2002 Annual Report Download - page 28

During August 2001, the Financial Accounting Standards Board also issued Statement of Financial
Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”
(“SFAS 144”). SFAS 144 is effective at the start of fiscal 2003 and supercedes Statement of Financial
Accounting Standards No. 121, “Accounting for the Impairment or Disposal of Long-Lived Assets and for Long-
Lived Assets to Be Disposed Of,” and the accounting and reporting provisions of Accounting Principles Board
Opinion No. 30 relating to the disposal of a segment of business. We are currently assessing the impact of SFAS
144 on our consolidated financial position, results of operations and cash flows.
Liquidity and Capital Resources
At January 31, 2002, our principal sources of liquidity were cash and marketable securities totaling
$504.6 million, accounts receivable of $140.5 million and a $75.0 million line of credit with a financial
institution. Other than operating leases, we do not engage in off-balance sheet financing arrangements nor any
special purpose entities.
During fiscal 2002, we generated $210.2 million of cash from operating activities as compared to
$196.1 million in fiscal 2001. Cash flows from operating activities, together with the proceeds from stock
issuances resulting from our employee stock plans, continue to be our principal means of generating cash. During
fiscal 2002 the cash generated was used to fund the repurchase of 5.3 million shares of our common stock for
$97.3 million, the acquisition of businesses for $34.3 million, capital and other expenditures of $45.1 million,
and dividend payments totaling $13.1 million.
Between November 1999 and March 2001, the Board of Directors approved plans to repurchase up to
44.0 million shares of our common stock. Of these 44.0 million shares, 29.5 million have been repurchased as of
January 31, 2002. The purpose of the stock repurchase program is, among other things, to help offset the dilution
to earnings per share caused by the issuance of stock under our employee stock plans.
We have 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. This credit facility contains restrictive
covenants that, among other provisions, require Autodesk to maintain certain financial ratios. During fiscal 2002
and at January 31, 2002, we were in compliance with these restrictive covenants. As of January 31, 2002, there
were no borrowings outstanding under this agreement, which expires in January 2003.
We generally do not enter into binding purchase commitments. Principal commitments at January 31, 2002,
consisted of obligations under operating leases for facilities and some computer equipment. At January 31, 2002,
the future minimum lease payments under these lease commitments were as follows: $35.1 million in 2003,
$31.1 million in 2004, $25.0 million in 2005, $19.0 million in 2006, $8.6 million in 2007, and $14.1 million
thereafter. Of these amounts, $17.5 million has been included in our restructuring accruals at January 31, 2002.
In April 2002, we acquired Revit Technology Corporation for $133.0 million in cash. The addition of Revit
complements our existing family of building industry applications with a parametric building modeler for
customers to design, coordinate, and integrate information about an entire building.
We believe our existing cash, cash equivalents, marketable securities, available line of credit and cash
generated from operations will be sufficient to satisfy our currently anticipated short-term and long-term cash
requirements. Long-term cash requirements, other than normal operating expenses, are anticipated for the
development of new software products and incremental product offerings resulting from the enhancement of
existing products; financing anticipated growth; dividend payments; the share repurchase programs; the
acquisition of businesses, software products, or technologies complementary to our business; and capital
expenditures. Capital expenditures for fiscal 2003 are currently anticipated to approximate what was incurred
during fiscal 2002, but could be reduced if our growth is less than anticipated.
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