Autodesk 2010 Annual Report Download - page 140

At January 31, 2010, we had net deferred tax assets of $146.1 million. We believe that we will generate
sufficient future taxable income in appropriate tax jurisdictions to realize these assets.
For additional information regarding our income tax provision, see Note 5, “Income Taxes,” in the Notes to
Consolidated Financial Statements.
Liquidity and Capital Resources
Our primary source of cash is from the sale of licenses to our products. Our primary use of cash is payment
of our operating costs which consist primarily of employee-related expenses, such as compensation and benefits,
as well as general operating expenses for marketing, facilities and overhead costs. In addition to operating
expenses, we also use cash to invest in our growth initiatives, which include acquisitions of products, technology
and businesses and to fund our stock repurchase program. See further discussion of these items below.
At January 31, 2010, our principal sources of liquidity were cash, cash equivalents and marketable securities
totaling $1,126.2 million and net accounts receivable of $277.4. In addition, we have a U.S. line of credit facility
that permits unsecured short-term borrowings of up to $250.0 million and a China line of credit that permits
unsecured short-term borrowings of up to $5.0 million. These line of credit agreements contain customary
covenants that could restrict the imposition of liens on our assets, and restrict our ability to incur additional
indebtedness or make dispositions of assets if we fail to maintain their financial covenants. These credit facilities
are available for working capital and other business needs. At January 31, 2010, we had no borrowings
outstanding on the U.S. or China line of credit. The U.S. facility expires in August 2012 and the China facility
has no contractual expiration. As of March 19, 2010, no amounts were outstanding on the U.S. and China line of
credit facilities.
Our cash and cash equivalents are held by diversified financial institutions globally. Our primary
commercial banking relationship is with Citibank and its global affiliates (“Citibank”). In addition, Citicorp
USA, Inc., an affiliate of Citibank, is the lead lender and agent in the syndicate of our $250.0 million U.S. line of
credit.
The increase in our cash, cash equivalents and marketable securities from $988.7 million at January 31,
2009 to $1,126.2 million at January 31, 2010 is principally the result of cash generated from operations and the
proceeds from the issuance of common stock. These increases to cash, cash equivalents and marketable securities
were partially offset by cash used for repurchases of our common stock, repayment of our lines of credit, capital
expenditures, the acquisition of PlanPlatform and equity investments. Cash generated from operations was
negatively impacted by lower net revenue and the payment of restructuring charges.
At January 31, 2010, our short-term investment portfolio had an estimated fair value of $161.9 million and a
cost basis of $169.1 million. The portfolio fair value consisted of $89.0 million invested in commercial paper and
corporate securities, $26.3 million invested in mutual funds, $24.6 million invested in certificates of deposit and
time deposits with remaining maturities at the date of purchase greater than 90 days and less than one year, $10.0
million invested in money market funds, $8.8 million invested in U.S. government agency securities and $3.2
million invested in municipal securities and other securities.
At January 31, 2010, we had an investment in The Reserve International Liquidity Fund (the “International
Fund”), a market fund with an estimated fair value of $10.0 million. During the third quarter of fiscal 2009, the
International Fund ceased redemptions after net asset values of the funds decreased below $1 per share. This
occurred as a result of the International Fund revaluing its holdings of debt securities issued by Lehman Brothers,
which filed for Chapter 11 bankruptcy on September 15, 2008, and the resulting unusually high redemption
requests on the International Fund. Our investment in the International Fund is unrelated to the assets of our
Deferred Compensation Plan.
46