Autodesk 2011 Annual Report Download - page 117

Operating lease obligations consist primarily of obligations for facilities, net of sublease income, computer
equipment and other equipment leases.
Purchase obligations are contractual obligations for purchase of goods or services are defined as agreements
that are enforceable and legally binding on Autodesk and that specify all significant terms, including: fixed or
minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of
the transaction. Purchase obligations relate primarily to hosting services agreements, IT infrastructure costs,
marketing costs and contractual software development services.
Deferred compensation obligations relate to amounts held in a rabbi trust under our non-qualified deferred
compensation plan. See Note 6 “Deferred Compensation,” in our Notes to Consolidated Financial Statements for
further information regarding this plan.
Pension obligations relate to our obligations for pension plans outside of the U.S. See Note 15, “Retirement
Benefit Plans,” in our Notes to Consolidated Financial Statements for further information regarding these
obligations.
Purchase orders or contracts for the purchase of supplies and other goods and services are not included in
the table above. We are not able to determine the aggregate amount of such purchase orders that represent
contractual obligations, as purchase orders may represent authorizations to purchase rather than binding
agreements. Our purchase orders are based on our current procurement or development needs and are fulfilled by
our vendors within short time horizons. We do not have significant agreements for the purchase of supplies or
other goods specifying minimum quantities or set prices that exceed our expected requirements for three months.
In addition, we have certain software royalty commitments associated with the shipment and licensing of certain
products. Royalty expense is generally based on the number of units shipped or a percentage of the underlying
revenue. Royalty expense, included in cost of license and other revenue, was $12.8 million in fiscal 2011, $16.5
million in fiscal 2010 and $17.1 million in fiscal 2009.
The expected timing of payment of the obligations discussed above is estimated based on current
information. Timing of payments and actual amounts paid may be different depending on the time of receipt of
goods or services or changes to agreed-upon amounts for some obligations.
We provide indemnifications of varying scopes and certain guarantees, including limited product warranties.
Historically, costs related to these warranties and indemnifications have not been significant, but because
potential future costs are highly variable, we are unable to estimate the maximum potential impact of these
guarantees on our future results of operations.
Issuer Purchases of Equity Securities
Our Board of Directors approved a stock repurchase program authorizing the cumulative repurchase of up to
184.0 million shares. The purpose of the stock repurchase program is largely to help offset the dilution to net
income per share caused by the issuance of stock under our employee stock plans and for such other purposes as
may be in the interests of Autodesk and its stockholders, and has the effect of returning excess cash generated
from our business to stockholders. The number of shares acquired and the timing of the purchases are based on
several factors, including general market conditions, the volume of employee stock option exercises, the trading
price of our common stock, cash on hand and available in the U.S., and company defined trading windows. There
were 2.0 million repurchases of our common stock during the three months ended January 31, 2011; during the
year ended January 31, 2011 we repurchased 9.0 million shares of our common stock. At January 31, 2011,
24.5 million shares remained available for repurchase under the existing repurchase authorization. This program
does not have a fixed expiration date. See Note 9, “Stockholder’ Equity,” in the Notes to Consolidated Financial
Statements for further discussion.
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