Autodesk 2011 Annual Report Download - page 80

ITEM 1A. RISK FACTORS
We operate in a rapidly changing environment that involves significant risks, a number of which are beyond
our control. In addition to the other information contained in this Form 10-K, the following discussion highlights
some of these risks and the possible impact of these factors on our business, financial condition and future results
of operations. If any of the following risks actually occur, our business, financial condition or results of
operations may be adversely impacted, causing the trading price of our common stock to decline. In addition,
these risks and uncertainties may impact the “forward-looking” statements described elsewhere in this Form
10-K and in the documents incorporated herein by reference. They could affect our actual results of operations,
causing them to differ materially from those expressed in “forward-looking” statements.
Any deceleration or reversal of the current global economic recoveries may impact our business, financial
results and financial condition.
As our business has expanded globally, we have increasingly become subject to risks arising from adverse
changes in global economic and political conditions. The past two years have been characterized by weak global
economic conditions, a tightening in the credit markets, a low level of liquidity in many financial markets,
increased government deficit spending and debt levels, and extreme volatility in many financial instrument
markets. Although some of these conditions appear to be abating and a global recovery seems to be underway, it
is not yet clear whether a sustainable recovery is currently taking place on a worldwide basis.
Any deceleration or reversal of the relatively slow and modest economic recovery taking place may cause
our customers to defer, reduce or cancel purchases. Over the past several years, many of our customers have
experienced tighter credit, negative financial news and weaker financial performance of their businesses and
have reduced their workforces, thereby reducing the number of licenses and the number of maintenance contracts
they purchase from us.
These actions may impact, and over the past several years have negatively impacted, our business, financial
results and financial condition. In addition, these factors may cause, and over the past several years have caused,
us to restructure our business and in turn incur restructuring charges as well as take impairment charges on some
of our long-term assets. In addition, the improvement of our financial performance over the past several fiscal
quarters may be negatively impacted by:
• lack of credit available to and the insolvency of key channel partners, impairing our distribution
channels and cash flows;
• counterparty failures negatively impacting our treasury functions, including timely access to our cash
reserves and third-party fulfillment of hedging transactions;
• counterparty failures negatively affecting our insured risks;
• inability of banks to honor our existing line of credit, increasing our borrowing expenses or eliminating
our ability to obtain short-term financing; and
• decreased borrowing and spending by our end users on small and large projects in the industries we
serve, thereby reducing demand for our products.
The actions that we may be forced to take in the event of any deceleration or reversal of the current domestic
and global economic recoveries could be costly and may not be as effective as we anticipate, and may force us
to take additional actions to reduce our expenses and stimulate demand for our products.
Any deceleration or reversal of the current domestic and global economic recoveries may reduce our
revenue levels and force us to take actions to reduce our cost structure to more closely align our costs with our
reduced revenue levels. Over the past several years we have on several occasions taken such actions. In taking
any future restructuring actions, we may incur, and over the past several years have incurred, additional costs that
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