Autodesk 2009 Annual Report Download - page 128

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option contracts by $3.9 million and a hypothetical 10% depreciation of the dollar from its value at January 31,
2008 would have decreased the fair value of our forward exchange and option contracts by $2.8 million. We do
not anticipate any material adverse impact to our consolidated financial position, results of operations or cash
flows as a result of these foreign currency forward and option contracts.
Interest rate sensitivity
At January 31, 2009, we had an investment portfolio of fixed income securities and short term mutual fund
balances of $63.5 million. At January 31, 2008, we had an investment portfolio of fixed income securities and
short term mutual fund balances of $31.4 million. The short-term mutual fund balances included $19.9 million at
January 31, 2009 and $26.7 million at January 31, 2008 of amounts held in a rabbi trust under deferred
compensation arrangements. See Note 4, “Deferred Compensation,” in the Notes to Consolidated Financial
Statements for further discussion.
Interest rate movements affect the interest income we earn on cash equivalents and short-term investments.
Assuming an average investment balance of $694.2 million in 2009, if interest rates were to increase (decrease)
by 10%, this would result in a $0.3 million increase (decrease) in annual interest income. Further, at January 31,
2009 we held $71.1 million in Money Market Funds, Mutual Funds, Bank Term Deposits and Auction Rate
Securities which by their structure are not directly susceptible to valuation changes due to increases or decreases
in interest rates.
We do not use derivative financial instruments in our investment portfolio to manage interest rate risk. We
place our investments in instruments that meet high credit quality standards, as specified in our investment policy
guidelines, which limits the amount of credit exposure to any one issue, issuer or type of instrument.
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