Autodesk 2009 Annual Report Download - page 151

• In December 2006, Congress passed the Tax Relief and Health Care Act of 2006 which resulted in the
• Autodesk also recognized an income tax benefit of $12.5 million related to the lapse of the statute of
AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits is as follows:
January 31,
2009 2008
Gross unrecognized tax benefits at February 1, 2008 .......................... $152.4 $137.7
Increases for tax positions of prior years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 2.7
Decreases for tax positions of prior years ................................... (7.0) —
Increases for tax positions related to the current year .......................... 34.5 15.5
Decreases for lapse of statute of limitations ................................. (3.0) (3.5)
Gross unrecognized tax benefits at January 31, 2009 .......................... $178.1 $152.4
It is the Company’s continuing practice to recognize interest and/or penalties related to income tax matters
in income tax expense. The Company had $2.4 million and $2.7 million, net of tax benefit, accrued for interest
and zero accrued for penalties related to unrecognized tax benefits as of January 31, 2009 and January 31, 2008,
respectively.
Autodesk and its subsidiaries are subject to income tax in the United States as well as numerous state and
foreign jurisdictions. The Company’s U.S. and state income tax returns for fiscal year 2003 through fiscal year
2009 remain open to examination. In addition, the Company files tax returns in multiple foreign taxing
jurisdictions with open tax years ranging from fiscal year 2000 to 2009.
Note 4. Deferred Compensation
At January 31, 2009, Autodesk had marketable securities totaling $71.1 million, of which $19.9 million
related to investments in debt and equity securities that are held in a rabbi trust under non-qualified deferred
compensation plans. The value of debt and equity securities held in the rabbi trust at January 31, 2009 and 2008
was $19.9 million and $26.7 million, respectively. The total related deferred compensation liability was $19.9
million at January 31, 2009, of which $1.2 million was classified as current and $18.7 million was classified as
non-current liabilities. The total related deferred compensation liability at January 31, 2008 was $26.7 million of
which $18.2 million was classified as current and $8.5 million was classified as non-current liabilities. The
current and non-current portions of the liability are recorded in the Consolidated Balance Sheets under “Accrued
compensation” and “Other liabilities,” respectively. During the first quarter of fiscal 2009, Autodesk changed its
method of estimating the maturity of the deferred compensation liability. Therefore, $16.2 million of the deferred
compensation liability balance as of January 31, 2008 has been reclassified from current to non-current liabilities
to conform to the current period presentation.
Note 5. Borrowing Arrangements
As of January 31, 2009, Autodesk had $52.1 million of outstanding borrowings, which were recorded in
“Borrowings under line of credit” on the balance sheet. This balance relates to two lines of credit, a U.S. line of
credit and a China line of credit.
Autodesk’s U.S. line of credit facility permits unsecured short-term borrowings of up to $250.0 million, and
is available for working capital or other business needs. The credit agreement contains customary covenants,
which could restrict the imposition of liens on Autodesk’s assets, and restrict the Company’s ability to incur
additional indebtedness or make dispositions of assets if Autodesk fails to maintain its financial covenants.
Autodesk drew on the U.S. line of credit during fiscal 2009 due to temporary differences between cash needs and
cash availability in the U.S. During fiscal 2009 Autodesk principally used the facility to fund the 8.0 million
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