Autodesk 2011 Annual Report Download - page 112

At January 31, 2011, we had net deferred tax assets of $147.5 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.
Other Financial Information
In addition to our results determined under U.S. generally accepted accounting principles (“GAAP”)
discussed above, we believe the following non-GAAP measures are useful to investors in evaluating our
operating performance. For the fiscal years ended January 31, 2011, 2010 and 2009, our gross profit, gross
margin, income from operations, operating margin, net income and diluted earnings per share on a GAAP and
non-GAAP basis were as follows (in millions except for gross margin, operating margin and per share data):
January 31,
2011
January 31,
2010
January 31,
2009
(Unaudited)
Gross profit ................................................... $1,755.2 $1,521.9 $2,096.1
Non-GAAP gross profit ......................................... $1,790.0 $1,557.9 $2,122.9
Gross margin ................................................. 90% 89% 91%
Non-GAAP gross margin ........................................ 92% 91% 92%
Income from operations ......................................... $ 271.4 $ 65.6 $ 244.5
Non-GAAP income from operations ............................... $ 418.8 $ 286.8 $ 576.7
Operating margin .............................................. 14% 4% 11%
Non-GAAP operating margin .................................... 21% 17% 25%
Net income ................................................... $ 212.0 $ 58.0 $ 183.6
Non-GAAP net income ......................................... $ 310.4 $ 229.2 $ 439.5
Diluted earnings per share ....................................... $ 0.90 $ 0.25 $ 0.80
Non-GAAP diluted earnings per share .............................. $ 1.32 $ 0.99 $ 1.91
For our internal budgeting and resource allocation process, we use non-GAAP measures to supplement our
consolidated financial statements presented on a GAAP basis. These non-GAAP measures do not include certain
items that may have a material impact upon our reported financial results. We use non-GAAP measures in
making operating decisions because we believe those measures provide meaningful supplemental information
regarding our earning potential. In addition, these non-GAAP financial measures facilitate comparisons to our
and our competitors’ historical results and operating guidance. We also use these measures for purposes of
determining company-wide incentive compensation.
There are limitations in using non-GAAP financial measures because non-GAAP financial measures are not
prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other
companies. The non-GAAP financial measures included above are limited in value because they exclude certain
items that may have a material impact upon our reported financial results. In addition, they are subject to inherent
limitations as they reflect the exercise of judgments by management about which charges are excluded from the
non-GAAP financial measures. We compensate for these limitations by analyzing current and future results on a
GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in our public disclosures. The
presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for
the directly comparable financial measures prepared in accordance with GAAP. The non-GAAP financial
measures are meant to supplement, and be viewed in conjunction with, GAAP financial measures. We urge
investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial
measures included below, and not to rely on any single financial measure to evaluate our business.
46