Autodesk 2003 Annual Report Download - page 36

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 program; the
acquisition of businesses, software products, or technologies complementary to our business; and capital
expenditures. In February 2003, we acquired the assets of Linius Technologies, Inc. for $1.0 million in cash and
in March 2003, we acquired certain assets of VIA Development Corporation for approximately $4.2 million in
cash. Capital expenditures for fiscal 2004 are currently anticipated to approximate what was incurred during
fiscal 2003, but could be reduced if our revenues are less than anticipated.
Our international operations are subject to currency fluctuations. To minimize the impact of these
fluctuations, we use foreign currency option contracts to hedge our exposure on anticipated transactions and
forward contracts to hedge our exposure on firm commitments, primarily certain payables and receivables
denominated in foreign currencies. Our foreign currency instruments by policy have maturities of less than three
months and settle before the end of each quarterly period. The principal currencies hedged during fiscal 2003
were the Euro, Swiss franc, British pound, Canadian dollar and Japanese yen. We monitor our foreign exchange
exposures to ensure the overall effectiveness of our foreign currency hedge positions.
Stock Compensation
We maintain three active stock option plans for the purpose of granting stock options to employees and
members of Autodesk’s Board of Directors: the 1996 Stock Plan (available to employees but not directors), the
Nonstatutory Stock Option Plan (available only to non-executive employees) and the 2000 Directors’ Option
Plan (available only to outside directors). Additionally, there are five expired plans with options outstanding.
Our stock option program is a broad-based, long-term retention program. Essentially all of our employees
participate. Approximately 91 percent of the options we granted during fiscal 2003 were awarded to employees
other than our CEO and four most highly compensated executive officers. Options granted under the above
mentioned plans vest over periods ranging from one to five years and expire within ten years. The exercise price
of the stock options is equal to the fair market value of the stock on the grant date.
With the exception of grants to our outside directors, all stock option grants to executive officers and
guidelines for grants to other employees are made by the Compensation Committee of the Board of Directors. All
members of the Compensation Committee are independent directors, as defined in the application rules for
issuers traded on The Nasdaq Stock Market. See the “Report of the Compensation Committee on Executive
Compensation” appearing in Autodesk’s proxy statement dated May 20, 2002, for further information concerning
the policies and procedures of Autodesk and the Compensation Committee regarding the use of stock options.
Grants to our outside directors are pre-determined by the terms of the 2000 Directors’ Option Plan.
Additional information regarding stock compensation is incorporated by reference to the section of the
Proxy Statement entitled “Employee and Director Stock Options”.
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