Autodesk 2014 Annual Report Download - page 129

2013 Annual Report
2014 Form 10-K 55
Purchase obligations are contractual obligations for purchase of goods or services and are defined as agreements that are
enforceable and legally binding on Autodesk and that specify all significant terms, including: fixed or minimum quantities to be
purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Purchase obligations
relate primarily to IT infrastructure costs, hosting services agreements, and marketing costs.
Deferred compensation obligations relate to amounts held in a rabbi trust under our non-qualified deferred compensation
plan. See Note 6, “Deferred Compensation,” in our Notes to Consolidated Financial Statements for further information
regarding this plan.
Pension obligations relate to our obligations for pension plans outside of the U.S. See Note 14, “Retirement Benefit
Plans,” in our Notes to Consolidated Financial Statements for further information regarding these obligations.
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, 2014, we repurchased 2.2 million and 10.5 million shares of
our common stock, respectively. At January 31, 2014, 21.8 million shares remained available for repurchase under our current
repurchase program approved by the Board of Directors. 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, 2014, 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 utilizes foreign currency contracts to manage our exposure to foreign currency
volatility that exists as part of our ongoing business operations. We utilize 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, 2014 and 2013, 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