Autodesk 2004 Annual Report Download - page 41

stock repurchase programs to offset the impact of our employee equity programs. The other financing use
of cash for both years was for the payment of dividends. Dividend payments were $13.4 million in fiscal 2004
and $13.6 million in fiscal 2003. The principal source of cash from financing activities was $115.4 million in
fiscal 2004 and $74.7 million in fiscal 2003 of proceeds from the issuance of common stock under our stock
option and stock purchase plans.
During fiscal 2004, we had a U.S. line of credit available that permitted unsecured short-term
borrowings of up to $40.0 million. This credit facility expired in February 2004. We do not plan to renew this
facility as we believe our existing cash, cash equivalents, marketable securities 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, including the purchase of customer relationship management software and services.
At January 31, 2004 approximately 54% of our consolidated cash, cash equivalents and marketable
securities were held with financial institutions in the United States; the remaining balances are held with
financial institutions outside the United States. For tax consequences of the unremitted earnings of our
foreign subsidiaries, see Note 4, “Income Taxes,” in the Notes to Consolidated Financial Statements.
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 receivables and
payables 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 2004 were the euro, Swiss francs, Canadian dollars, British pounds and Japanese yen.
We monitor our foreign exchange exposures to ensure the overall effectiveness of our foreign currency
hedge positions.
Contractual Obligations
The following table summarizes our significant financial contractual obligations at January 31, 2004 and
the effect such obligations are expected to have on our liquidity and cash flows in future periods. This table
excludes amounts already recorded on our balance sheet as current liabilities at January 31, 2004.
Payments due by period
Total
Less than
1 year 1–3 years 3–5 years
More than
5 years
(in millions)
Operating lease obligations ........ $120.9 $38.6 $45.4 $14.4 $22.5
Purchase obligations ................ 15.5 12.8 2.7 — —
Total (1) ......................... $136.4 $51.4 $48.1 $14.4 $22.5
(1) Total does not include contractual obligations recorded on the balance sheet or certain purchase
obligations as discussed below.
For the purposes of this table, contractual obligations for purchase of goods or services are defined as
agreements that are enforceable and legally binding on Autodesk and that specify all significant terms,
including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and
the approximate timing of the transaction. Purchase orders or contracts for the purchase of supplies,
services and other goods and services are not included in the table above. We are not able to determine the
aggregate amount of such purchase orders that represent contractual obligations, as purchase orders may
represent authorizations to purchase rather than binding agreements. Our purchase orders are based on
our current procurement or development needs and are fulfilled by our vendors within short time horizons.
We do not have significant agreements for the purchase of supplies, services or other goods specifying
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