Autodesk 2009 Annual Report Download - page 125

Contractual Obligations
The following table summarizes our significant financial contractual obligations at January 31, 2009 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, 2009.
Total
Fiscal Year
2010
Fiscal Years
2011-2012
Fiscal Years
2013-2014 Thereafter
(in millions)
Operating lease obligations ............. $227.9 $ 62.2 $83.2 $39.1 $43.4
Purchase obligations ................... 44.3 39.9 4.3 0.1 —
Total(1)(2) ...................... $272.2 $102.1 $87.5 $39.2 $43.4
(1) Total does not include contractual obligations recorded on the balance sheet or certain purchase obligations
as discussed below.
(2) The table also excludes (a) amounts related to income tax liabilities for uncertain tax positions in accordance
with FIN 48, 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 Consolidated Financial
Statements), and (b) non-qualified deferred compensation plan liabilities since we cannot predict with
reasonable reliability the timing of cash disbursements to plan participants (see Note 4 “Deferred
Compensation” to the Notes to 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.
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 minimum quantities or set prices that exceed our expected requirements for
three months. We also enter into contracts for outsourced services; however, in most instances, the obligations
under these contracts are not significant and the contracts contain clauses allowing for cancellation without
significant penalty. In addition, we have certain software royalty commitments associated with the shipment and
licensing of certain products. Royalty expense is generally based on the number of units shipped or a percentage
of the underlying revenue. Royalty expense, included in cost of license and other revenue, was $17.1 million in
fiscal 2009, $14.9 million in fiscal 2008, and $16.8 million in fiscal 2007.
Principal commitments at January 31, 2009 shown above consist of obligations under operating leases for
facilities and computer equipment, IT infrastructure costs, marketing costs and contractual software development
services. Purchase commitments also include $21.7 million related to a termination fee for an outsource
application hosting services agreement entered into during fiscal 2006. This fee is reduced as time elapses during
the five-year contract period.
The expected timing of payment of the obligations discussed above is estimated based on current
information. Timing of payments and actual amounts paid may be different depending on the time of receipt of
goods or services or changes to agreed-upon amounts for some obligations.
We provide indemnifications of varying scopes and certain guarantees, including limited product warranties.
Historically, costs related to these warranties and indemnifications have not been significant, but because
potential future costs are highly variable, we are unable to estimate the maximum potential impact of these
guarantees on our future results of operations.
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