Autodesk 2015 Annual Report Download - page 142

2015 Form 10-K 50
Our effective tax rate was 18% and 20% during fiscal 2014 and 2013, respectively. Our effective tax rate decreased two
percentage points from fiscal 2013 to fiscal 2014 primarily due to an increase in tax benefits from foreign earnings taxed at
different rates in fiscal 2014 compared to fiscal 2013, offset in part by lower tax benefits from restructuring and additional tax
expense associated with uncertain tax positions and audit assessments.
Our future effective tax rate may be materially impacted by the amount of benefits and charges from tax amounts
associated with our foreign earnings that are taxed at rates different from the federal statutory rate, research credits, state
income taxes, the tax impact of stock-based compensation, accounting for uncertain tax positions, business combinations, U.S.
Manufacturer's deduction, closure of statute of limitations or settlement of tax audits, changes in valuation allowances and
changes in tax laws including possible U.S. tax law changes that, if enacted, could significantly impact how U.S. multinational
companies are taxed on foreign subsidiary earnings. A significant amount of our earnings is generated by our Europe and Asia
Pacific subsidiaries. Our future effective tax rates may be adversely affected to the extent earnings are lower than anticipated in
countries where we have lower statutory tax rates or we repatriate certain foreign earnings on which U.S. taxes have not
previously been provided.
At January 31, 2015, we had net deferred tax assets of $185.1 million. We believe that we will generate sufficient future
taxable income in appropriate tax jurisdictions to realize these assets.
For additional information regarding our income tax provision and reconciliation of our effective rate to the federal
statutory rate of 35%, see Note 4, “Income Taxes,” in the Notes to Consolidated Financial Statements.
Other Financial Information
In addition to our results determined under U.S. generally accepted accounting principles (“GAAP”) discussed above, we
believe the following non-GAAP measures are useful to investors in evaluating our operating performance. For the fiscal years
ended January 31, 2015, 2014, and 2013, our gross profit, gross margin, income from operations, operating margin, net income,
and diluted earnings per share on a GAAP and non-GAAP basis were as follows (in millions except for gross margin, operating
margin and per share data):
Fiscal Year Ended January 31,
2015 2014 2013
(Unaudited)
Gross profit $ 2,170.1 $ 1,999.6 $ 2,073.7
Non-GAAP gross profit $ 2,232.2 $ 2,049.8 $ 2,118.6
Gross margin 86% 88% 90%
Non-GAAP gross margin 89% 90% 92%
Income from operations $ 120.7 $ 284.8 $ 305.9
Non-GAAP income from operations $ 382.4 $ 510.5 $ 587.9
Operating margin 5% 13% 13%
Non-GAAP operating margin 15% 22% 25%
Net income $ 81.8 $ 228.8 $ 247.4
Non-GAAP net income (1) $ 272.3 $ 385.6 $ 450.0
Diluted earnings per share (2) $ 0.35 $ 1.00 $ 1.07
Non-GAAP diluted earnings per share (1) (2) $ 1.17 $ 1.68 $ 1.94
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(1) Effective in the second quarter of fiscal 2013, Autodesk began excluding gains and losses on strategic investments for purposes of its
non-GAAP financial measures. Prior period non-GAAP interest and other income (expense), net, net income, and earnings per share
amounts have been revised to conform to the current period presentation.
(2) Earnings per share were computed independently for each of the periods presented; therefore the sum of the earnings per share amount
for the quarters may not equal the total for the year.
For our internal budgeting and resource allocation process and as a means to evaluate period-to-period comparisons, we use
non-GAAP measures to supplement our consolidated financial statements presented on a GAAP basis. These non-GAAP measures
do not include certain items that may have a material impact upon our reported financial results. We use non-GAAP measures in
making operating decisions because we believe those measures provide meaningful supplemental information regarding our earning
2015 Annual Report