Autodesk 2011 Annual Report Download - page 149

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AUTODESK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
which could restrict 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,
2011 and 2010, Autodesk had no outstanding borrowings on this line of credit. This facility expires in
August 2012.
During the second quarter of fiscal 2011, Autodesk terminated its $5.0 million China line of credit because
it was no longer needed. At January 31, 2010, Autodesk had no outstanding borrowings on this line of credit.
Note 8. Commitments and Contingencies
Lease commitments
Autodesk leases office space and computer equipment under non-cancellable operating lease agreements
that expire at various dates through 2023. The leases generally provide that Autodesk pay taxes, insurance and
maintenance expenses related to the leased assets. Certain of these lease arrangements contain escalation clauses
whereby monthly rent increases over time. At January 31, 2011, the aggregate future minimum lease payments
required were as follows:
2012 ....................................................................... $ 52.7
2013 ....................................................................... 44.0
2014 ....................................................................... 34.6
2015 ....................................................................... 26.4
2016 ....................................................................... 21.1
Thereafter ................................................................... 54.1
232.9
Less: Sublease income ......................................................... 4.2
$228.7
Rent expense related to these operating leases recognized on a straight-line basis over the lease period, was
as follows:
Fiscal Year Ended January 31,
2011 2010 2009
Rent expense ................................................. $52.1 $56.8 $73.1
Purchase commitments
In the normal course of business, Autodesk enters into various purchase commitments for goods or services.
Total non-cancellable purchase commitments as of January 31, 2011 were approximately $73.3 million for
periods through fiscal 2015. These purchase commitments primarily result from contracts for the acquisition of
IT infrastructure, marketing and software development services. Of the total purchase commitments, $9.8 million
related to a termination fee for an outsource application hosting services agreement entered into during fiscal
2006. This fee is reduced as time lapses during the five-year contract period.
Autodesk has certain royalty commitments associated with the shipment and licensing of certain products.
Royalty expense is generally based on a dollar amount per unit shipped or a percentage of the underlying
revenue. Royalty expense, which was recorded under cost of license and other revenue on Autodesk’s
Consolidated Statements of Operations, was $12.8 million in fiscal 2011, $16.5 million in fiscal 2010 and $17.1
million in fiscal 2009.
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