Autodesk 2013 Annual Report Download - page 117

At January 31, 2013, we had net deferred tax assets of $165.0 million. We believe that we will generate sufficient future
taxable income in appropriate tax jurisdictions to realize these assets.
For additional information regarding our income tax provision and reconciliation of our effective rate to the federal
statutory rate of 35%, see Note 4, “Income Taxes,” in the Notes to Consolidated Financial Statements.
Other Financial Information
In addition to our results determined under U.S. generally accepted accounting principles (“GAAP”) discussed above, we
believe the following non-GAAP measures are useful to investors in evaluating our operating performance. For the fiscal years
ended January 31, 2013, 2012 and 2011, our gross profit, gross margin, income from operations, operating margin, net income
and diluted earnings per share on a GAAP and non-GAAP basis were as follows (in millions except for gross margin, operating
margin and per share data):
January 31, 2013 January 31, 2012 January 31, 2011
(Unaudited)
Gross profit $ 2,073.7 $ 1,986.5 $ 1,755.2
Non-GAAP gross profit $ 2,118.6 $ 2,028.4 $ 1,790.0
Gross margin 90% 90% 90%
Non-GAAP gross margin 92% 92% 92%
Income from operations $ 305.9 $ 355.6 $ 271.4
Non-GAAP income from operations $ 587.9 $ 533.4 $ 418.8
Operating margin 13% 16% 14%
Non-GAAP operating margin 25% 24% 21%
Net income $ 247.4 $ 285.3 $ 212.0
Non-GAAP net income (1) $ 450.0 $ 405.4 $ 310.4
Diluted earnings per share $ 1.07 $ 1.22 $ 0.90
Non-GAAP diluted earnings per share (1) $ 1.94 $ 1.74 $ 1.32
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(1) Effective in the second quarter of fiscal 2013, Autodesk began excluding gains and losses on strategic investments for purposes of its
non-GAAP financial measures. Prior period non-GAAP interest and other income (expense), net, net income and earnings per share
amounts have been revised to conform to the current period presentation.
For our internal budgeting and resource allocation process, we use non-GAAP measures to supplement our consolidated
financial statements presented on a GAAP basis. These non-GAAP measures do not include certain items that may have a
material impact upon our reported financial results. We use non-GAAP measures in making operating decisions because we
believe those measures provide meaningful supplemental information regarding our earning potential. In addition, these non-
GAAP financial measures facilitate comparisons to our historical results and operating guidance as well as that of competitors.
We also use these measures for purposes of determining company-wide incentive compensation.
There are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in
accordance with GAAP and may be different from non-GAAP financial measures used by other companies. The non-GAAP
financial measures included above are limited in value because they exclude certain items that may have a material impact
upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments
by management about which charges are excluded from the non-GAAP financial measures. We compensate for these
limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP
measures in our public disclosures. The presentation of non-GAAP financial information is not meant to be considered in
isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. The non-GAAP
financial measures are meant to supplement, and be viewed in conjunction with, GAAP financial measures. We urge investors
to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures included below,
and not to rely on any single financial measure to evaluate our business.
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2013 Annual Report