Autodesk 2012 Annual Report Download - page 111

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Our non-GAAP financial measures as set forth in the table above exclude the following:
Stock-based compensation expenses. We exclude stock-based compensation expenses from non-GAAP measures
primarily because they are non-cash expenses and management finds it useful to exclude certain non-cash charges to assess the
appropriate level of various operating expenses to assist in budgeting, planning and forecasting future periods.
Amortization of purchased intangibles. We incur amortization of acquisition-related purchased intangible assets in
connection with acquisitions of certain businesses and technologies. The amortization of purchased intangibles varies
depending on the level of acquisition activity and management finds it useful to exclude these variable charges to assess the
appropriate level of various operating expenses to assist in budgeting, planning and forecasting future periods.
Goodwill impairment. This is a non-cash charge to write-down goodwill to fair value when there was an indication that
the asset was impaired. As explained above, management finds it useful to exclude certain non-cash charges to assess the
appropriate level of various operating expenses to assist in budgeting, planning and forecasting future periods.
Restructuring charges. These expenses are associated with realigning our business strategies based on current economic
conditions. In connection with these restructuring actions, we recognize costs related to termination benefits for former
employees whose positions were eliminated, and the closure of facilities and cancelation of certain contracts. We exclude these
charges because these expenses are not reflective of ongoing financial results in the current period.
Establishment of a valuation allowance on certain net deferred tax assets. This is a non-cash charge to record a
valuation allowance on certain deferred tax assets. As explained above, management finds it useful to exclude certain non-cash
charges to assess the appropriate level of various expenses to assist in budgeting, planning and forecasting future periods.
Discrete tax items. We exclude the GAAP tax provision, including discrete items, from the non-GAAP measure of
income, and include a non-GAAP tax provision based upon the projected annual non-GAAP effective tax rate. Discrete tax
items include income tax expenses or benefits that do not relate to ordinary income from continuing operations in the current
fiscal year, unusual or infrequently occurring items, or the tax impact of certain stock-based compensation. Examples of
discrete tax items include, but are not limited to, certain changes in judgment and changes in estimates of tax matters related to
prior fiscal years, certain costs related to business combinations, certain changes in the realizability of deferred tax assets or
changes in tax law. Management believes this approach assists investors in understanding the tax provision and the effective tax
rate related to ongoing operations.
Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are
excluded from the non-GAAP measures relate to the tax impact on the difference between GAAP and non-GAAP costs and
expenses, primarily due to stock-based compensation, purchased intangibles and restructuring for GAAP and non-GAAP
measures.
Liquidity and Capital Resources
Our primary source of cash is from the sale of licenses to our products. Our primary use of cash is payment of our
operating costs which consist primarily of employee-related expenses, such as compensation and benefits, as well as general
operating expenses for marketing, facilities and overhead costs. In addition to operating expenses, we also use cash to invest in
our growth initiatives, which include acquisitions of products, technology and businesses and to fund our stock repurchase
program. See further discussion of these items below.
At January 31, 2012, our principal sources of liquidity were cash, cash equivalents and marketable securities totaling
$1,604.1 million and net accounts receivable of $395.1 million. In addition, we have a line of credit facility that permitted
unsecured short-term borrowings of up to $400.0 million that we entered into in May 2011, which replaced our previous $250.0
million line of credit facility that would have expired in August 2012. During fiscal 2012, we had no borrowings or repayments
under our current or prior line of credit facility. This credit facility is available for working capital and general corporate
purposes and expires in May 2016.
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, Citibank is one of the lead lenders and agent in
the syndicate of our $400.0 million line of credit.
The increase in our cash, cash equivalents and marketable securities to $1,604.1 million at January 31, 2012 from
$1,466.9 million at January 31, 2011 is principally the result of cash generated from operations and to a lesser extent, 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, acquisitions including business combinations and technology purchases, capital expenditures, and other investing
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activities. Cash generated from operations was positively impacted by higher net revenue.
2012 Annual Report