Autodesk 2015 Annual Report Download - page 147

2015 Form 10-K 55
Long-term cash requirements for items other than normal operating expenses are anticipated for the following: common
stock repurchases; the acquisition of businesses, software products, or technologies complementary to our business; and capital
expenditures, including the purchase and implementation of internal-use software applications.
Our strategy includes improving our product functionality and expanding our product offerings through internal
development as well as through the acquisition of products, technology, and businesses. Acquisitions often increase the speed at
which we can deliver product functionality to our customers; however, they entail cost and integration challenges and, in certain
instances, negatively impact our operating margins. We continually review these trade-offs in making decisions regarding
acquisitions. We currently anticipate that we will continue to acquire products, technology, and businesses as compelling
opportunities become available. Our decision to acquire businesses or technology is dependent on our business needs, the
availability of suitable sellers and technology, and our own financial condition.
Our cash, cash equivalents, and marketable securities balances are concentrated in a few locations around the world, with
substantial amounts held outside of the U.S. As of January 31, 2015, approximately 81% of our total cash, cash equivalents, and
marketable securities are located offshore and will fluctuate subject to business needs. Certain amounts held outside the U.S.
could be repatriated to the U.S. (subject to local law restrictions), but under current U.S. tax law, could be subject to U.S.
income taxes less applicable foreign tax credits. We have provided for the U.S. income tax liability on foreign earnings, except
for foreign earnings that are considered permanently reinvested outside the U.S. Our intent is that amounts related to foreign
earnings permanently reinvested outside the U.S. will remain outside the U.S. and we will meet our U.S. liquidity needs
through ongoing cash flows, external borrowings, or both. We regularly review our capital structure and consider a variety of
potential financing alternatives and planning strategies to ensure we have the proper liquidity available in the locations in which
it is needed and to fund our existing stock buyback program with cash that has not been permanently reinvested outside the U.S.
Cash from operations could also be affected by various risks and uncertainties, including, but not limited to the risks
detailed in Part I, Item 1A titled “Risk Factors.” However, based on our current business plan and revenue prospects, we believe
that our existing balances, our anticipated cash flows from operations and our available credit facility will be sufficient to meet
our working capital and operating resource expenditure requirements for at least the next 12 months.
Our revenue, earnings, cash flows, receivables, and payables are subject to fluctuations due to changes in foreign currency
exchange rates, for which we have put in place foreign currency contracts as part of our risk management strategy. See Part II,
Item 7A, “Quantitative and Qualitative Disclosures about Market Risk” for further discussion.
Contractual Obligations
The following table summarizes our significant financial contractual obligations at January 31, 2015 and the effect such
obligations are expected to have on our liquidity and cash flows in future periods.
Total Fiscal 2016 Fiscal Years 2017-2018 Fiscal Years 2019-2020 Thereafter
(in millions)
Notes $ 871.6 $ 20.4 $ 439.8 $ 25.2 $ 386.2
Operating lease obligations 222.7 54.9 87.1 48.1 32.6
Purchase obligations 85.4 63.7 14.4 7.3 —
Deferred compensation obligations 40.3 5.3 5.0 4.9 25.1
Pension obligations 34.3 3.5 6.9 6.4 17.5
Other obligations (1) 10.8 1.1 5.7 3.2 0.8
Total (2) $ 1,265.1 $ 148.9 $ 558.9 $ 95.1 $ 462.2
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(1) Other obligations include asset retirement obligations.
(2) This table generally excludes amounts already recorded on the balance sheet as current liabilities, certain purchase obligations as
discussed below, long term deferred revenue, and amounts related to income tax liabilities for uncertain tax positions, since we cannot
predict with reasonable reliability the timing of cash settlements to the respective taxing authorities (see Note 4, “Income Taxes” to the
Notes to Consolidated Financial Statements).
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