Autodesk 2011 Annual Report Download - page 146

AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Pursuant to accounting standards related to stock-based compensation, the Company has unrecorded excess
stock option tax benefits of $160.6 million as of January 31, 2011. These amounts will be credited to additional
paid-in-capital when such amounts reduce cash taxes payable. Foreign pretax income was $321.1 million in fiscal
2011, $253.9 million in fiscal 2010 and $298.5 million in fiscal 2009.
The differences between the U.S. statutory rate and the aggregate income tax provision are as follows:
Fiscal year ended January 31,
2011 2010 2009
Income tax provision at U.S. Federal statutory rate ......................... $95.2 $ 29.7 $ 88.3
State income tax expense (benefit), net of the U.S. Federal benefit ............. 1.4 (0.6) (1.5)
Foreign income taxed at rates different from the U.S. statutory rate ............ (39.7) (22.7) (55.6)
U.S. valuation allowance ............................................. 2.8 14.9 (0.2)
Non-deductible stock-based compensation ............................... 7.9 11.7 11.8
Research and development tax credit benefit .............................. (5.6) (4.7) (6.9)
Tax benefit from closure of income tax audits and decreases in uncertain tax
positions ........................................................ (2.8) (2.5) (6.2)
Officer compensation in excess of $1.0 million ............................ 0.5 0.3 0.2
Goodwill impairment ................................................ — — 30.6
Non-deductible in-process research and development charge ................. — — 7.0
Other ............................................................. 0.3 0.6 1.4
$ 60.0 $ 26.7 $ 68.9
Significant components of Autodesk’s deferred tax assets and liabilities are as follows:
January 31,
2011 2010
Nonqualified stock options .................................................... $ 69.0 $ 57.5
Research and development tax credit carryforwards ................................. 64.0 55.7
Foreign tax credit carryforwards ................................................ 16.6 26.8
Accrued compensation and benefits ............................................. 33.7 25.7
Other accruals not currently deductible for tax ..................................... 18.7 17.8
Purchased technology and capitalized software .................................... 22.8 12.7
Fixed assets ................................................................ 15.1 12.0
Tax loss carryforwards ....................................................... 6.3 11.3
Capitalized research and development expenditures ................................. 2.5 3.4
Reserves for product returns and bad debts ........................................ 2.1 2.1
Other ..................................................................... 2.6 2.2
Total deferred tax assets ...................................................... 253.4 227.2
Less: valuation allowance ..................................................... (42.9) (39.0)
Net deferred tax assets ........................................................ 210.5 188.2
Tax method change on advanced payments ....................................... (9.4) —
Unremitted earnings of foreign subsidiaries ....................................... (53.6) (42.1)
Total deferred tax liability ..................................................... (63.0) (42.1)
Net deferred tax assets ........................................................ $147.5 $146.1
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