Autodesk 2008 Annual Report Download - page 122

hold the securities until the value recovers or to maturity. Due to the lack of liquidity of these investments, they
are included in “Marketable securities—non-current.” Autodesk will continue to evaluate its accounting for these
investments on a quarterly basis. See Note 12, “Financial Instruments,” for further discussion of Autodesk’s
financial instruments.
Net cash flows provided by operating activities increased $131.9 million to $708.5 million during fiscal
2008 as compared to the prior fiscal year. The increase was primarily due to an increase in net income of $66.5
million from fiscal 2007 to fiscal 2008 and improved working capital management. Net working capital changes
were driven primarily by increases in accrued compensation and other accrued liabilities that increased cash
flows from operations by $38.4 million and $26.9 million, respectively.
Long-term cash requirements for items other than normal operating expenses are anticipated for the
following: development of new software products and incremental product offerings resulting from the
enhancement of existing products; financing anticipated growth; the share repurchase program; the acquisition of
businesses, software products, or technologies complementary to our business; and capital expenditures,
including the purchase and implementation of internal-use software applications. In addition, $26.7 million of
our marketable securities are held in a rabbi trust under non-qualified deferred compensation plans as of
January 31, 2008. See Note 4, “Deferred Compensation,” in the Notes to Consolidated Financial Statements for
further discussion.
Our international operations are subject to currency fluctuations. To minimize the effect 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 2008
were the euro, British pound, Japanese yen, Swiss franc and Canadian dollar. 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, 2008 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, 2008.
Total
Fiscal
Year 2009
Fiscal Years
2010-2011
Fiscal Years
2012-2013 Thereafter
(in millions)
Operating lease obligations .............. $229.6 $ 61.4 $92.5 $50.9 $24.8
Purchase obligations ................... 39.0 39.0 — — —
Total(1)(2) ....................... $268.6 $100.4 $92.5 $50.9 $24.8
(1) Total does not include contractual obligations recorded on the balance sheet or certain purchase obligations
as discussed below.
(2) The table also excludes our liability for unrecognized tax benefits in accordance with FIN 48, which totaled
$152.4 million as of January 31, 2008, since we cannot predict with reasonable reliability the timing of cash
settlements to the respective taxing authorities. See Note 3 “Income Taxes” to the Notes to the Consolidated
Financial Statements.
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.
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