Autodesk 2015 Annual Report Download - page 113

2015 Form 10-K 21
• regulatory compliance costs;
• potential goodwill impairment charges related to prior acquisitions; and
• adjustments arising from ongoing or future tax examinations.
We have also experienced fluctuations in financial results in interim periods in certain geographic regions due to
seasonality or regional economic or political conditions. In particular, our financial results in Europe during our third quarter
are usually affected by a slower summer period, and our Asia Pacific operations typically experience seasonal slowing in our
third and fourth quarters.
Our operating expenses are based in part on our expectations for future revenue and are relatively fixed in the short term.
Accordingly, any revenue shortfall below expectations has had, and in the future could have, an immediate and significant
adverse effect on our profitability. Greater than anticipated expenses or a failure to maintain rigorous cost controls would also
negatively affect profitability.
Our business could suffer as a result of risks, costs, and charges associated with strategic acquisitions and investments.
We regularly acquire or invest in businesses, software products and technologies that are complementary to our business
through acquisitions, strategic alliances or equity or debt investments. For example, in fiscal 2015 we acquired Delcam, a
leading supplier of advanced CADCAM and industrial measurement solutions for the manufacturing industry. The risks
associated with such acquisitions include, among others, the difficulty of assimilating products, operations and personnel,
inheriting liabilities such as intellectual property infringement claims, the failure to realize anticipated revenue and cost
projections, the requirement to test and assimilate the internal control processes of the acquired business in accordance with the
requirements of Section 404 of the Sarbanes-Oxley Act of 2002, and the diversion of management's time and attention.
In addition, such acquisitions and investments involve other risks such as:
• the inability to retain customers, key employees, vendors, distributors, business partners, and other entities associated
with the acquired business;
• the potential that due diligence of the acquired business or product does not identify significant problems;
• exposure to litigation or other claims in connection with, or inheritance of claims or litigation risk as a result of, an
acquisition, including but not limited to, claims from terminated employees, customers, or other third parties;
• the potential for incompatible business cultures;
• significant higher than anticipated transaction or integration-related costs;
• potential additional exposure to fluctuations in currency exchange rates; and
• the potential impact on relationships with existing customers, vendors, and distributors as business partners as a result
of acquiring another business.
We may not be successful in overcoming such risks, and such acquisitions and investments may negatively impact our
business. In addition, such acquisitions and investments have in the past and may in the future contribute to potential
fluctuations in our quarterly financial results. These fluctuations could arise from transaction-related costs and charges
associated with eliminating redundant expenses or write-offs of impaired assets recorded in connection with acquisitions and
investments. These costs or charges could negatively impact our financial results for a given period, cause quarter to quarter
variability in our financial results or negatively impact our financial results for several future periods.
2015 Annual Report