Autodesk 2013 Annual Report Download - page 122

Purchase orders or contracts for the purchase of supplies and other goods and services are not included in the table above.
We are not able to determine the aggregate amount of such purchase orders that represent contractual obligations, as purchase
orders may represent authorizations to purchase rather than binding agreements. Our purchase orders are based on our current
procurement or development needs and are fulfilled by our vendors within short time horizons. We do not have significant
agreements for the purchase of supplies or other goods specifying minimum quantities or set prices that exceed our expected
requirements for three months. In addition, we have certain software royalty commitments associated with the shipment and
licensing of certain products.
The expected timing of payment of the obligations discussed above is estimated based on current information. Timing of
payments and actual amounts paid may be different depending on the time of receipt of goods or services or changes to agreed-
upon amounts for some obligations.
We provide indemnifications of varying scopes and certain guarantees, including limited product warranties. Historically,
costs related to these warranties and indemnifications have not been significant, but because potential future costs are highly
variable, we are unable to estimate the maximum potential impact of these guarantees on our future results of operations.
Issuer Purchases of Equity Securities
Autodesk's stock repurchase program is largely to help offset the dilution from the issuance of stock under our employee
stock plans and for such other purposes as may be in the interests of Autodesk and its stockholders, and has the effect of
returning excess cash generated from our business to stockholders. The number of shares acquired and the timing of the
purchases are based on several factors, including general market conditions, the volume of employee stock option exercises,
stock issuance, the trading price of our common stock, cash on hand and available in the U.S., and company defined trading
windows. During the three and twelve months ended January 31, 2013, we repurchased 2.6 million and 12.5 million shares of
our common stock, respectively. At January 31, 2013, 32.2 million shares remained available for repurchase under the existing
repurchase authorizations. This program does not have a fixed expiration date. See Note 9, “Stockholders' Equity,” in the Notes
to Consolidated Financial Statements for further discussion.
Off-Balance Sheet Arrangements
As of January 31, 2013, we did not have any significant off-balance sheet arrangements other than operating leases, as
defined in Item 303(a)(4)(ii) of Regulation S-K.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Foreign currency exchange risk
Our revenue, earnings, cash flows, receivables and payables are subject to fluctuations due to changes in foreign currency
exchange rates. Our risk management strategy uses foreign currency contracts to manage our exposure to foreign currency
volatility that exists as part of our ongoing business operations. We use cash flow hedge contracts to reduce the exchange rate
impact on a portion of the net revenue or operating expense of certain anticipated transactions. In addition, we use balance
sheet hedge contracts to reduce the exchange rate risk associated primarily with foreign currency denominated receivables and
payables. As of January 31, 2013 and 2012, we had open cash flow and balance sheet hedge contracts with future settlements
within one to twelve months. Contracts were primarily denominated in euros, Japanese yen, Swiss francs, British pounds,
Canadian dollars, and Australian dollars. We do not enter into any foreign exchange derivative instruments for trading or
speculative purposes. The notional amount of our option and forward contracts was $438.2 million and $494.7 million at
January 31, 2013 and 2012, respectively.
We use foreign currency contracts to reduce the exchange rate impact on the net revenue and operating expenses of
certain anticipated transactions. A sensitivity analysis performed on our hedging portfolio as of January 31, 2013 indicated that
a hypothetical 10% appreciation of the U.S. dollar from its value at January 31, 2013 and 2012 would increase the fair value of
our foreign currency contracts by $29.6 million and $45.3 million, respectively. A hypothetical 10% depreciation of the dollar
from its value at January 31, 2013 and 2012 would decrease the fair value of our foreign currency contracts by $33.1 million
and $24.3 million, respectively.
Interest rate risk
Interest rate movements affect both the interest income we earn on our short term investments and the market value of
certain longer term securities. At January 31, 2013, we had $2,007.0 million of cash equivalents and marketable securities,
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