Autodesk 2016 Annual Report Download - page 99

2016 Form 10-K 27
Management initiated remediation plans including the following:
• enhancing our technical accounting review for complex income tax considerations;
• enhancing our income tax controls to include specific activities to ensure proper classification of deferred
taxes;
• supplementing our accounting and tax professionals with the engagement of an internationally recognized
accounting firm to assist us in the technical review regarding the application of tax rules around deferred tax
assets and liabilities; and
• assessed
and reorganized the structure of our tax function to enhance the level of documentation, technical
oversight and review
There can be no assurance that our remedial measures will be sufficient to address the material weakness or that our
internal control over financial reporting will not be subject to additional material weaknesses in the future. If the remedial
measures that we take are insufficient to address our material weakness or if additional material weaknesses or significant
deficiencies in our internal control are discovered or occur in the future, our Condensed Consolidated Financial
Statements may contain material misstatements, and we could be required to restate our financial results. Additionally, we
may encounter problems or delays in implementing any changes necessary for management to make a favorable
assessment of our internal control over financial reporting. If we cannot favorably assess the effectiveness of our internal
control over financial reporting, investors could lose confidence in our financial reports and the price of our common
stock could decline.
Net revenue, billings, earnings or subscriptions shortfalls or the volatility of the market generally may cause the market
price of our stock to decline.
The market price for our common stock has experienced significant fluctuations and may continue to fluctuate
significantly. The market price for our common stock may be affected by a number of factors, including the other factors
described in this Part I, Item 1A and the following:
• shortfalls in our expected financial results, including net revenue, billings, earnings, subscriptions, or other key
performance metrics;
• results and future projections related to our business model transition, including the impact of the end of
upgrades and perpetual licenses;
• quarterly variations in our or our competitors' results of operations;
• general socio-economic, political or market conditions;
• changes in estimates of future results or recommendations or confusion on the part of analysts and investors
about the short-term and long-term impact to our business resulting from our business model transition;
• uncertainty about certain governments' abilities to repay debt or effect fiscal policy;
• the announcement of new products or product enhancements by us or our competitors;
• unusual events such as significant acquisitions, divestitures, regulatory actions, and litigation;
• changes in laws, rules, or regulations applicable to our business;
• outstanding debt service obligations; and
• other factors, including factors unrelated to our operating performance, such as instability affecting the economy
or the operating performance of our competitors.
2016 Annual Report