Autodesk 2009 Annual Report Download - page 152

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AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
share stock repurchase and for the acquisition of Moldflow. Autodesk had $50.0 million of outstanding
borrowings on this line of credit at January 31, 2009. This facility expires in August 2012.
Autodesk’s China line of credit facility permits unsecured short-term borrowings of up to $5.0 million, and
is available for working capital needs. At January 31, 2009, Autodesk had $2.1 million of outstanding
borrowings on this line of credit, which contains customary covenants. Autodesk drew on this line of credit due
to temporary differences between cash needs and cash availability in China. The current China facility draw
matures in May 2009. The China facility is a short-term revolving facility which may be canceled or called at any
time with 30 days’ written notice.
The weighted average interest rate on Autodesk’s line of credit facilities was 1.01% at January 31, 2009.
There were no outstanding balances on Autodesk’s line of credit facilities at January 31, 2008.
Note 6. Commitments and Contingencies
Leases
Autodesk leases office space and computer equipment under noncancellable operating lease agreements.
The leases generally provide that Autodesk pay taxes, insurance and maintenance expenses related to the leased
assets. Future minimum lease payments for fiscal years ended January 31 are as follows:
2010 ....................................................................... $ 62.2
2011 ....................................................................... 49.7
2012 ....................................................................... 33.5
2013 ....................................................................... 25.6
2014 ....................................................................... 13.5
Thereafter ................................................................... 43.4
227.9
Less: Sublease income ......................................................... (3.8)
$224.1
Autodesk leases office space under arrangements expiring through 2023. Certain of these lease
arrangements contain escalation clauses whereby monthly rent increases over time. Autodesk leases computer
equipment under arrangements expiring through 2015. Rent expense is recognized on a straight-line basis over
the lease period. Rent expense was $73.1 million in fiscal 2009, $49.6 million in fiscal 2008, and $40.6 million in
fiscal 2007.
Purchase commitments
Autodesk, in the normal course of business, enters into various purchase commitments for goods or services.
Total non-cancellable purchase commitments as of January 31, 2009 were approximately $44.3 million for
periods through fiscal 2012. These purchase commitments primarily result from contracts for the acquisition of
IT infrastructure, marketing and software development services. Of the total purchase commitments,
$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 lapses during the five-year contract period.
Autodesk has certain royalty commitments associated with the shipment and licensing of certain products.
Royalty expense is generally based on a dollar amount per unit shipped or a percentage of the underlying
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