Autodesk 2015 Annual Report Download - page 117

2015 Form 10-K 25
Changes in laws and/or regulations related to the Internet or related to privacy and data security concerns may impact our
business or expose us to increased liability.
The future success of our business depends upon the continued use of the Internet as a primary medium for commerce,
communication, and business applications. Federal, state, or foreign government bodies or agencies have in the past adopted,
and may in the future adopt, laws or regulations affecting data privacy and the transmission of certain types of content using the
Internet. For example, the State of California has adopted legislation requiring operators of commercial websites and mobile
applications that collect personal information from California residents to conspicuously post and comply with privacy policies
that satisfy certain requirements. Several other U.S. states have adopted legislation requiring companies to protect the security
of personal information that they collect from consumers over the Internet, and more states may adopt similar legislation in the
future. Additionally, the Federal Trade Commission has used its authority under Section 5 of the Federal Trade Commission Act
to bring actions against companies for failing to maintain adequate security for personal information collected from consumers
over the Internet and for failing to comply with privacy-related representations made to Internet users. The U.S. Congress has at
various times proposed federal legislation intended to protect the privacy of Internet users and the security of personal
information collected from Internet users that would impose additional compliance burdens upon companies collecting personal
information from Internet users, and the U.S. Congress may adopt such legislation in the future. The European Union also has
adopted various directives regulating data privacy and security and the transmission of content using the Internet involving
residents of the European Union, including those directives known as the Data Protection Directive, the E-Privacy Directive,
and the Privacy and Electronic Communications Directive, and may adopt similar directives in the future. Several other
countries, including Canada and several Latin American and Asian countries, have constitutional protections for, or have
adopted legislation protecting, individuals' personal information. Additionally, some federal, state, or foreign governmental
bodies have established laws that seek to censor the transmission of certain types of content over the Internet or require that
individuals be provided with the ability to permanently delete all electronic personal information, such as the German
Multimedia Law of 1997.
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 investment portfolio consists of a variety of investment vehicles in a number of countries that are subject to interest rate
trends, market volatility, and other economic factors. If general economic conditions decline, this could cause the credit ratings
of our investments to deteriorate, illiquidity in the financial marketplace, and we may experience a decline in interest income,
and an inability to sell our investments, leading to impairment in the value of our investments.
It is our policy to invest our cash, cash equivalents, and marketable securities in highly liquid instruments with, and in the
custody of, financial institutions with high credit ratings and to limit the amounts invested with any one institution, type of
security, and issuer. However, we are subject to general economic conditions, interest rate trends, and volatility in the financial
marketplace that can affect the income that we receive from our investments, the net realizable value of our investments
(including our cash, cash equivalents, and marketable securities) and our ability to sell them. In the U.S., for example, the yields
on our portfolio securities are very low due to general economic conditions. Any one of these factors could reduce our
investment income, or result in material charges, which in turn could impact our overall net income and earnings per share.
From time to time we make direct investments in privately held companies. The privately held companies in which we
invest are considered inherently risky. The technologies and products these companies have under development are typically in
the early stages and may never materialize, which could result in a loss of all or a substantial part of our initial investment in
these companies. The evaluation of privately held companies is based on information that we request from these companies,
which is not subject to the same disclosure regulations as U.S. publicly traded companies, and as such, the basis for these
evaluations is subject to the timing and accuracy of the data received from these companies.
A loss on any of our investments may cause us to record an other-than-temporary impairment charge. The effect of this
charge could impact our overall net income and earnings per share. In any of these scenarios, our liquidity may be negatively
impacted, which in turn may prohibit us from making investments in our business, taking advantage of opportunities and
potentially meeting our financial obligations as they come due.
2015 Annual Report