Autodesk 2016 Annual Report Download - page 165

2016 Form 10-K 93
A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits is as follows:
Fiscal Year Ended January 31,
2016 2015 2014
Gross unrecognized tax benefits at the beginning of the fiscal year $ 245.8 $ 222.1 $ 212.7
Increases for tax positions of prior years 1.4 3.2 1.8
Decreases for tax positions of prior years (7.0) (2.5) (0.3)
Increases for tax positions related to the current year 15.8 33.2 15.3
Decreases relating to settlements with taxing authorities (0.5) (5.4) (4.6)
Reductions as a result of lapse of the statute of limitations (1.2) (4.8) (2.8)
Gross unrecognized tax benefits at the end of the fiscal year $ 254.3 $ 245.8 $ 222.1
It is the company's continuing practice to recognize interest and/or penalties related to income tax matters in income tax
expense. Autodesk had $3.3 million, $2.0 million, and $2.8 million, net of tax benefit, accrued for interest and penalties related
to unrecognized tax benefits as of January 31, 2016, 2015, and 2014, respectively.
Autodesk and its subsidiaries are subject to income tax in the United States as well as numerous state and foreign
jurisdictions. Autodesk's U.S. and state income tax returns for fiscal year 2003 through fiscal year 2016 remain open to
examination. In addition, Autodesk files tax returns in multiple foreign taxing jurisdictions with open tax years ranging from
fiscal year 2004 to 2016.
5. Acquisitions
During the fiscal years ended January 31, 2016 and January 31, 2015, Autodesk completed the business combinations and
technology purchases described below. The results of operations for the following acquisitions are included in the
accompanying Consolidated Statement of Operations since their respective acquisition dates. Pro forma results of operations
have not been presented because the effects of the following acquisitions, individually and in the aggregate, were not material
to Autodesk's Consolidated Financial Statements.
For acquisitions accounted for as business combinations, Autodesk recorded the tangible and intangible assets acquired
and liabilities assumed based on their estimated fair values at the date of acquisition. The fair values assigned to the identifiable
intangible assets acquired were based on estimates and assumptions determined by management. Autodesk recorded the excess
of consideration transferred over the aggregate fair values as goodwill.
Fiscal 2016 Acquisitions
On November 12, 2015, Autodesk closed a share purchase agreement with FIT AG (“FIT”) to acquire all of the
outstanding shares of netfabb GmbH ("netfabb") for approximately $42.5 million cash consideration. Autodesk simultaneously
entered into an investment agreement with FIT to invest approximately $27.4 million cash to acquire an equity interest in FIT.
netfabb is a German-based provider of industrial grade additive manufacturing software solutions supporting most major 3D
printers. FIT is a German-based provider of rapid prototyping and additive design and manufacturing services. The acquisition
of netfabb is expected to provide Autodesk with software solutions that will reduce production costs and increase efficiency in
3D printing and additive manufacturing. netfabb will be integrated into Autodesk's PSEB segment. The amount of goodwill
that is expected to be deductible for U.S. income tax purposes is $29.8 million.
During the fiscal year ended January 31, 2016, Autodesk also completed several other business combinations and
technology acquisitions for total cash consideration of $106.8 million. These business combinations and technology
acquisitions were not material individually or in aggregate to Autodesk's Consolidated Financial Statements.
2016 Annual Report