Autodesk 2015 Annual Report Download - page 146

2015 Form 10-K 54
Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are
excluded from the non-GAAP measures relate to the tax impact on the difference between GAAP and non-GAAP expenses,
primarily due to stock-based compensation, amortization of purchased intangibles and restructuring charges (benefits) for GAAP
and non-GAAP measures.
Liquidity and Capital Resources
Our primary source of cash is from the sale of licenses to our products. Our primary use of cash is payment of our
operating costs, which consist primarily of employee-related expenses, such as compensation and benefits, as well as general
operating expenses for marketing, facilities, and overhead costs. In addition to operating expenses, we also use cash to fund our
stock repurchase program and invest in our growth initiatives, which include acquisitions of products, technology, and
businesses. See further discussion of these items below.
At January 31, 2015, our principal sources of liquidity were cash, cash equivalents, and marketable securities totaling
$2,299.4 million and net accounts receivable of $458.9 million.
In fiscal 2013, we issued $400.0 million aggregate principal amount of 1.95% senior notes due December 15, 2017 and
$350.0 million aggregate principal amount of 3.6% senior notes due December 15, 2022, (collectively, the "Senior Notes"). As
of March 18, 2015, we have $750.0 million aggregate principal amount of Senior Notes outstanding. Our senior notes do not
contain any financial covenants. In addition, we have a line of credit facility that permits unsecured short-term borrowings of up
to $400.0 million. The credit facility contains certain customary affirmative and negative covenants and two financial
covenants: a leverage ratio, and an interest coverage ratio. The credit facility limits our ability to incur additional indebtedness
and has certain other restrictions on our activities as defined in the credit agreement. As of January 31, 2015, we were in
compliance with the credit facility’s covenants. We have no amounts outstanding under the credit facility as of March 18, 2015.
The credit facility expires in May 2018. Borrowings under the credit facility and the net proceeds from the offering of the
Senior Notes are available for general corporate purposes.
Our cash and cash equivalents are held by diversified financial institutions globally. Our primary commercial banking
relationship is with Citigroup and its global affiliates. In addition, Citibank N.A., an affiliate of Citigroup, is one of the lead
lenders and agent in the syndicate of our $400.0 million line of credit.
The decrease in our cash, cash equivalents, and marketable securities to $2,299.4 million at January 31, 2015 from
$2,544.4 million at January 31, 2014 is primarily due to cash used for acquisitions, including business combination and
technology purchases, the repurchase of common stock, and lower proceeds from the issuance of common stock as compared to
the prior fiscal year. The cash proceeds from the issuance of common stock varies based on our stock price, stock option
exercise activity, and the volume of employee purchases under the Employee Stock Purchase Plan (“ESP Plan”). These
decreases to cash, cash equivalents, and marketable securities are partially offset by an increase in cash generated by operating
activities.
The primary source for net cash provided by operating activities of $708.1 million for fiscal 2015 was net income of $81.8
million increased by the effect of non-cash expenses totaling $311.5 million associated with depreciation, amortization,
accretion, and stock-based compensation. In addition, net cash flow provided by changes in operating assets and liabilities was
$296.0 million. The primary working capital sources of cash were an increase in deferred revenue and accrued compensation
for fiscal 2015 compared to fiscal 2014. Our days sales outstanding in trade receivables was 63 at January 31, 2015 compared
to 66 at January 31, 2014. The decrease in days sales outstanding primarily relates to improved billings linearity. The primary
working capital uses of cash were a decrease in income taxes payable and an increase in accounts receivable for fiscal 2015
compared to fiscal 2014.
At January 31, 2015, our short-term investment portfolio had an estimated fair value of $615.8 million and a cost basis of
$612.3 million. The portfolio fair value consisted of $258.4 million invested in commercial paper, $148.0 million invested in
corporate debt securities, $101.9 million invested in certificates of deposit, $37.9 million invested in U.S. government agency
securities, and $29.3 million invested in municipal securities.
At January 31, 2015, $40.3 million of trading securities were invested in a defined set of mutual funds as directed by the
participants in our Deferred Compensation Plan (see Note 6, “Deferred Compensation,” in the Notes to Consolidated Financial
Statements for further discussion).
2015 Annual Report