Autodesk 2011 Annual Report Download - page 115

credit facility is available for working capital and other business needs. The U.S. line of credit expires in August
2012. In addition to the U.S line of credit, we had a $5.0 million China line of credit that was terminated during
the second quarter of fiscal 2011. During fiscal 2011, we had no borrowings or repayments on either of our line
of credit facilities. At the beginning of fiscal 2010 we had $52.1 million outstanding on our U.S. and China line
of credit facilities. During fiscal 2010, we borrowed $2.2 million under our credit facilities for a total outstanding
balance of $54.3 million, all of which we repaid in fiscal 2010. As of January 31, 2011 and 2010, there were no
borrowings outstanding under 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 $1,126.2 million at January 31,
2010 to $1,466.9 million at January 31, 2011 is principally the result of cash generated from operations and the
proceeds from the issuance of common stock following stock option exercises and employee stock plan
purchases. These increases to cash, cash equivalents and marketable securities were partially offset by cash used
for repurchases of our common stock, capital expenditures, and cash used for business combinations and other
investing activities. Cash generated from operations was positively impacted by higher net revenue.
The primary source for net cash provided by operating activities of $540.8 million for fiscal 2011 was net
income of $212.0 million increased by the effect of non-cash expenses totaling $186.1 million associated with
depreciation and amortization and stock-based compensation. In addition, net cash flow provided by changes in
operating assets and liabilities was $131.9 million. The primary source of working capital was an increase in
deferred revenue due to higher maintenance billings for fiscal 2011 compared to fiscal 2010. The primary
working capital uses of cash were increases in accounts receivable due to higher billings in fiscal 2011 compared
to fiscal 2010 and an increase in prepaid and other assets.
At January 31, 2011, our short-term investment portfolio had an estimated fair value of $199.2 million and a
cost basis of $197.5 million. The portfolio fair value consisted of $47.7 million invested in commercial paper and
corporate securities, $47.2 million invested in U.S. government agency securities, $31.3 million invested in
mutual funds, $29.0 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, $26.0 million invested in U.S treasury securities,
$9.1 million invested in sovereign debt, $8.6 million invested in municipal securities and $0.3 million invested in
other short-term securities.
At January 31, 2010, Autodesk was invested in The Reserve International Liquidity Fund (the “International
Fund”) with an estimated fair value of $10.0 million. In mid-September of 2008, 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 their holdings of debt securities issued by Lehman Brothers Holdings, Inc.
(“Lehman Brothers”), which filed for Chapter 11 bankruptcy on September 15, 2008, and the resulting unusually
high redemption requests on the International Fund. A third party court supervisor was appointed to oversee the
accounting and payment administration of the International Fund. On November 30, 2010 a judge entered an
order accepting a Settlement Agreement directing the distribution of the remaining funds. On January 20, 2011,
we received substantially all of our holdings from the International Fund.
At January 31, 2011, $31.3 million of trading securities were invested in a defined set of mutual funds as
directed by the participants in our Deferred Compensation Plan (see Note 6, “Deferred Compensation,” in the
Notes to Consolidated Financial Statements for further discussion).
Long-term cash requirements for items other than normal operating expenses are anticipated for the
following: stock repurchases; the acquisition of businesses, software products, or technologies complementary to
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