Autodesk 2016 Annual Report Download - page 163

2016 Form 10-K 91
The differences between the U.S. statutory rate and the aggregate income tax provision are as follows:
Fiscal year ended January 31,
2016 2015 2014
Income tax provision at U.S. Federal statutory rate $ (7.1) $ 29.0 $ 98.0
State income tax benefit, net of the U.S. Federal benefit (7.6) (4.0) (2.9)
Foreign income taxed at rates different from the U.S. statutory rate (29.4) (40.0) (57.1)
U.S. valuation allowance 345.0 2.9 2.1
Tax effect of non-deductible stock-based compensation 19.3 15.7 10.8
Research and development tax credit benefit (9.4) (7.2) (8.8)
Closure of income tax audits and changes in uncertain tax positions (4.7) (0.7) 3.6
Tax effect of officer compensation in excess of $1.0 million 1.4 2.4 3.0
Non-deductible expenses 2.6 2.2 2.6
Other 0.1 0.9 (0.2)
$ 310.2 $ 1.2 $ 51.1
Autodesk's tax expense was increased by $345.0 million during fiscal 2016 for valuation allowances reducing the
Company's U.S. federal and state deferred tax assets to the amount more likely than not to be realized. The effective tax rate
impact includes valuation allowances against the deferred tax assets that existed at the beginning of fiscal 2016, and valuation
allowances to offset tax attributes generated during fiscal 2016.
The Protecting Americans from Tax Hikes (PATH) Act of 2015 enacted on December 18, 2015 extended and made
permanent the federal R&D tax credit. As a result, our income tax provision for Fiscal 2016 includes a tax benefit that reduced
our effective annual tax rate. We recorded federal R&D tax benefits of $9.4 million, $7.2 million and $8.8 million during fiscal
2016, 2015, and 2014, respectively. As of January 31, 2016, the deferred tax asset balances for U.S. federal and state R&D tax
credits were offset by a valuation allowance.
Significant components of Autodesk’s deferred tax assets and liabilities are as follows:
January 31,
2016 2015
Stock-based compensation $ 37.5 $ 39.9
Research and development tax credit carryforwards 91.3 62.6
Foreign tax credit carryforwards 51.1 —
Accrued compensation and benefits 41.5 43.6
Other accruals not currently deductible for tax 23.6 18.4
Purchased technology and capitalized software 64.3 53.9
Fixed assets 18.6 16.2
Tax loss carryforwards 17.6 16.0
Deferred Revenue 56.7 48.0
Other 13.9 7.4
Total deferred tax assets 416.1 306.0
Less: valuation allowance (398.0) (70.8)
Net deferred tax assets 18.1 235.2
Indefinite lived intangibles (54.1) (40.7)
Unremitted earnings of foreign subsidiaries (22.4) (9.4)
Total deferred tax liabilities (76.5) (50.1)
Net deferred tax assets $ (58.4) $ 185.1
The valuation allowance increased by $327.2 million, $3.6 million, and $15.9 million in fiscal 2016, 2015, and 2014,
respectively. The fiscal 2016, 2015, and 2014 changes in valuation allowance were primarily related to U.S. and Canadian
2016 Annual Report