Autodesk 2013 Annual Report Download - page 97

Given the variety of global privacy and data protection regimes, it is possible we may find ourselves subject to
inconsistent obligations. For instance, the USA Patriot Act is considered by some to be in conflict with certain directives of the
European Union. Situations such as these require that we make prospective determinations regarding compliance with
conflicting regulations. Increased enforcement of existing laws and regulations, as well as any laws, regulations or changes that
may be adopted or implemented in the future, could limit the growth of the use of public cloud applications or communications
generally, result in a decline in the use of the Internet and the viability of Internet-based applications, and require
implementation of additional technological safeguards.
Our financial results could be negatively impacted if our tax positions are successfully challenged by tax authorities.
We are a U.S.-based multinational company subject to tax in multiple U.S. and foreign tax jurisdictions. Our effective tax
rate is based on our expected geographic mix of earnings, statutory rates, intercompany transfer pricing, and enacted tax rules.
Significant judgment is required in determining our effective tax rate and in evaluating our tax positions on a worldwide basis.
We believe our tax positions, including intercompany transfer pricing policies, are consistent with the tax laws in the
jurisdictions in which we conduct our business. It is possible that these positions may be challenged by jurisdictional tax
authorities and may have a significant impact on our effective tax rate.
Our business could be adversely affected if we are unable to attract and retain key personnel.
Our success and ability to invest and grow depend largely on our ability to attract and retain highly skilled technical,
professional, managerial, sales and marketing personnel. Historically, competition for these key personnel has been intense.
The loss of services of any of our key personnel (including key personnel joining our company through acquisitions), the
inability to retain and attract qualified personnel in the future, or delays in hiring required personnel, particularly engineering
and sales personnel, could make it difficult to meet key objectives, such as timely and effective product introductions and
financial goals.
We rely on third party technologies and if we are unable to use or integrate these technologies, our product and service
development may be delayed and our financial results negatively impacted.
We rely on certain software that we license from third parties, including software that is integrated with internally
developed software and used in our products to perform key functions. These third-party software licenses may not continue to
be available on commercially reasonable terms, and the software may not be appropriately supported, maintained or enhanced
by the licensors. The loss of licenses to, or inability to support, maintain and enhance any such software could result in
increased costs, or in delays or reductions in product shipments until equivalent software can be developed, identified, licensed
and integrated, which would likely harm our business.
Disruptions with licensing relationships and third party developers could adversely impact our business.
We license certain key technologies from third parties. Licenses may be restricted in the term or the use of such
technology in ways that negatively affect our business. Similarly, we may not be able to obtain or renew license agreements for
key technology on favorable terms, if at all, and any failure to do so could harm our business.
Our business strategy has historically depended in part on our relationships with third-party developers who provide
products that expand the functionality of our design software. Some developers may elect to support other products or may
experience disruption in product development and delivery cycles or financial pressure during periods of economic downturn.
In particular markets, such disruptions have in the past, and would likely in the future, negatively impact these third-party
developers and end users, which could harm our business.
Additionally, technology created by outsourced product development, whether outsourced to third parties or developed
externally and transferred to us through business or technology acquisitions, have certain additional risks such as effective
integration into existing products, adequate transfer of technology know-how and ownership and protection of transferred
intellectual property.
As a result of our strategy of partnering with other companies for product development, our product delivery schedules could
be adversely affected if we experience difficulties with our product development partners.
We partner with certain independent firms and contractors to perform some of our product development activities. We
believe our partnering strategy allows us to, among other things, achieve efficiencies in developing new products and
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2013 Annual Report