Autodesk 2013 Annual Report Download - page 119

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 (benefits), net. 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 cancellation of certain contracts. We
exclude these charges because these expenses are not reflective of ongoing financial results in the current period.
Loss (gain) on strategic investments. We exclude gains and losses related to our strategic investments from our non-
GAAP measures primarily because management finds it useful to exclude these variable gains and losses on these investments
in assessing our financial results. Included in these amounts are non-cash unrealized gains and losses on the derivative
components and realized gains and losses on the sale or losses on the impairment of these investments.
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 cash 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, 2013, our principal sources of liquidity were cash, cash equivalents and marketable securities totaling
$2,365.4 million and net accounts receivable of $495.1 million.
In December 2012, we issued $400.0 million aggregate principal amount of 1.95% senior notes due December 15, 2017
and $350.0 million aggregate principal amount of 3.6% senior notes due December 15, 2022, (collectively, the "Senior Notes").
In addition, we have a line of credit facility that permits unsecured short-term borrowings of up to $400.0 million. This line of
credit facility was entered into in May 2011 and expires in 2016. During fiscal 2013, we borrowed $110.0 million under the
credit facility. In the fourth quarter of fiscal 2013, we re-paid the outstanding balance on our credit facility with a portion of the
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2013 Annual Report