Autodesk 2003 Annual Report Download - page 35

In valuing the developed and in-process technologies, we used a discounted cash flow analysis based on
projected net revenues, cost of revenues, operating expenses and income taxes resulting from such technologies
over a 6-year period. The projected financial results, which were discounted using a 40 percent rate for the
developed technology and a 50 percent rate for the IPR&D, were based on expectations of Media 100 on a stand-
alone basis.
The revenue projections for developed technologies, which considered the release dates of new products,
assumed a gradual decline. We based the revenue projections for the IPR&D on expected trends in technology
and the timing of new product introductions.
For a more detailed discussion of the allocation of the total purchase considerations for each of the acquired
businesses described above, which includes among other things liabilities assumed, see Note 10, Business
Combinations, in the Notes to Consolidated Financial Statements.
Liquidity and Capital Resources
At January 31, 2003 our principal sources of liquidity were cash and marketable securities totaling $411.0
million and accounts receivable of $132.8 million. Additionally, we currently have a $40.0 million line of credit
with a financial institution.Other than operating leases, described below we do not engage in off-balance sheet
financing arrangements or any special purpose entities.
During fiscal 2003 we generated $86.2 million of cash from operating activities as compared to $210.2 million
in fiscal 2002.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. Cash flows from operating
activities have historically resulted from sales of our software products, changes in working capital accounts and
add-backs of non-cash expense items such as depreciation and amortization.
During fiscal 2003 the cash generated, together with cash and securities available at the start of the year,
was used to fund the repurchase of 4.4 million shares of our common stock for $64.8 million, the acquisition of
Revit for $133.0 million, the acquisition of two other businesses for $12.2 million, capital and other expenditures
of $36.1 million and dividend payments totaling $13.6 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, 33.9 million have been repurchased and retired
as of January 31, 2003. 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.
As of February 2003 we have a U.S. line of credit permitting short-term, unsecured borrowings of up to
$40.0 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 and expires in February 2004.
We generally do not enter into binding purchase commitments. Principal commitments at January 31, 2003,
consisted of obligations under operating leases for facilities and some computer equipment. At January 31, 2003
the future minimum lease payments under these lease commitments were as follows (in millions). Of these
amounts $10.2 million has been included in our restructuring accruals at January 31, 2003.
2004 ............................................................... $ 37.8
2005 ............................................................... 33.3
2006 ............................................................... 21.5
2007 ............................................................... 13.1
2008 ............................................................... 7.5
Thereafter ........................................................... 28.1
$141.3
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