Autodesk 2015 Annual Report Download - page 120

2015 Form 10-K 28
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
maintaining and enhancing existing product offerings. Our partnering strategy creates a dependency on such independent
developers. Independent developers, including those who currently develop products for us in the U.S. and throughout the
world, may not be able or willing to provide development support to us in the future. In addition, use of development resources
through consulting relationships, particularly in non-U.S. jurisdictions with developing legal systems, may be adversely
impacted by, and expose us to risks relating to, evolving employment, export, and intellectual property laws. These risks could,
among other things, expose our intellectual property to misappropriation and result in disruptions to product delivery schedules.
Our business may be significantly disrupted upon the occurrence of a catastrophic event.
Our business is highly automated and relies extensively on the availability of our network and data center infrastructure,
our internal technology systems and our websites. We also rely on hosted computer services from third parties for services that
we provide to our customers and computer operations for our internal use. The failure of our systems or hosted computer
services due to a catastrophic event, such as an earthquake, fire, flood, tsunami, weather event, telecommunications failure,
power failure, cyber attack, or war, could adversely impact our business, financial results, and financial condition. We have
developed disaster recovery plans and maintain backup systems in order to reduce the potential impact of a catastrophic event,
however there can be no assurance that these plans and systems would enable us to return to normal business operations. In
addition, any such event could negatively impact a country or region in which we sell our products. This could in turn decrease
that country's or region's demand for our products, thereby negatively impacting our financial results.
We issued $750.0 million aggregate principal amount of senior unsecured notes in a debt offering in December 2012 and have
an existing $400.0 million revolving credit facility, and may incur other debt in the future, all of which may adversely affect our
financial condition and future financial results.
In December 2012, we issued 1.95% notes due December 15, 2017 in an aggregate principal amount of $400.0 million
and 3.6% notes due December 15, 2022 in an aggregate principal amount of $350.0 million. As the December 2017 and
December 2022 debt matures, we will have to expend significant resources to either repay or refinance these notes. If we decide
to refinance the notes, we may be required to do so on different or less favorable terms or we may be unable to refinance the
notes at all, both of which may adversely affect our financial condition.
We also have a $400.0 million revolving credit facility. As of January 31, 2015, we had no outstanding borrowings on the
line of credit. Although we have no current plans to borrow under this credit facility, we may use the proceeds of any future
borrowing for general corporate purposes, or for future acquisitions or expansion of our business. Our existing and future levels
of indebtedness may adversely affect our financial condition and future financial results by, among other things:
• increasing our vulnerability to adverse changes in general economic, industry and competitive conditions;
• requiring the dedication of a greater than expected portion of our expected cash from operations to service our
indebtedness, thereby reducing the amount of expected cash flow available for other purposes, including capital
expenditures and acquisitions; and
• limiting our flexibility in planning for, or reacting to, changes in our business and our industry.
We are required to comply with the covenants set forth in our senior unsecured notes and revolving credit facility. Our
ability to comply with these covenants may be affected by events beyond our control. If we breach any of the covenants and do
not obtain a waiver from the note holders or lenders, then, subject to applicable cure periods, any outstanding indebtedness may
be declared immediately due and payable. In addition, changes by any rating agency to our credit rating may negatively impact
the value and liquidity of our securities. Under certain circumstances, if our credit ratings are downgraded or other negative
action is taken, the interest rate payable by us under our revolving credit facility could increase. Downgrades in our credit
ratings could also restrict our ability to obtain additional financing in the future and could affect the terms of any such
financing.
2015 Annual Report