Autodesk 2010 Annual Report Download - page 175

AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The reconciliation of fiscal 2009 beginning and ending gross unrecognized tax benefits is updated to reflect
the correction of an overstatement in the increases for tax positions related to the current year.
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 $2.2 million, $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, 2010, 2009 and
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
2010 remain open to examination. In addition, the Company files tax returns in multiple foreign taxing
jurisdictions with open tax years ranging from fiscal year 2001 to 2010.
Note 6. Deferred Compensation
At January 31, 2010, Autodesk had marketable securities totaling $287.5 million, of which $26.3 million
related to investments in debt and equity securities that are held in a rabbi trust under non-qualified deferred
compensation plans. The total related deferred compensation liability was $26.3 million at January 31, 2010, of
which $1.1 million was classified as current and $25.2 million was classified as non-current liabilities. The value of
debt and equity securities held in the rabbi trust at January 31, 2009 was $19.9 million. The total related deferred
compensation liability at January 31, 2009 was $19.9 million, of which $1.2 million was classified as current and
$18.7 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.
Note 7. Borrowing Arrangements
Autodesk had no outstanding borrowings on its lines of credit as of January 31, 2010. 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 related 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. At
January 31, 2010, Autodesk had no outstanding borrowings on this line of credit. At January 31, 2009, Autodesk
had $50.0 million of outstanding borrowings on this line of credit. 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 share stock repurchase and for the
acquisition of Moldflow. This facility expires in August 2012.
Autodesk’s China line of credit facility, which contains customary covenants, permits unsecured short-term
borrowings of up to $5.0 million, and is available for working capital needs. At January 31, 2010, Autodesk had
no outstanding borrowings on this line of credit. At January 31, 2009, Autodesk had $2.1 million of outstanding
borrowings on this line of credit. Autodesk drew on this line of credit during fiscal 2009 due to temporary
differences between cash needs and cash availability in China. 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.
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