Cover
Cover - shares | 3 Months Ended | |
Apr. 30, 2021 | May 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-14338 | |
Entity Registrant Name | AUTODESK, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-2819853 | |
Entity Address, Address Line One | 111 McInnis Parkway, | |
Entity Address, City or Town | San Rafael, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94903 | |
City Area Code | 415 | |
Local Phone Number | 507-5000 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ADSK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 220,013,315 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000769397 | |
Current Fiscal Year End Date | --01-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Net revenue: | ||
Total net revenue | $ 989.3 | $ 885.7 |
Cost of revenue: | ||
Amortization of developed technologies | 10.2 | 7.4 |
Total cost of revenue | 92.8 | 81.9 |
Gross profit | 896.5 | 803.8 |
Operating expenses: | ||
Marketing and sales | 377.1 | 341.3 |
Research and development | 265.5 | 217.4 |
General and administrative | 111.9 | 104.8 |
Amortization of purchased intangibles | 8.2 | 9.7 |
Total operating expenses | 762.7 | 673.2 |
Income from operations | 133.8 | 130.6 |
Interest and other expense, net | (2.4) | (40.1) |
Income before income taxes | 131.4 | 90.5 |
Benefit (provision) for income taxes | 24.2 | (24) |
Net income | $ 155.6 | $ 66.5 |
Basic net income per share (in usd per share) | $ 0.71 | $ 0.30 |
Diluted net income per share (in usd per share) | $ 0.70 | $ 0.30 |
Weighted average shares used in computing basic net income per share (in shares) | 219.6 | 219.2 |
Weighted average shares used in computing diluted net income per share (in shares) | 222 | 221.3 |
Subscription and Maintenance | ||
Net revenue: | ||
Total net revenue | $ 966.6 | $ 865.1 |
Cost of revenue: | ||
Cost of revenue | 68.5 | 57.4 |
Subscription | ||
Net revenue: | ||
Total net revenue | 947.5 | 803 |
Maintenance | ||
Net revenue: | ||
Total net revenue | 19.1 | 62.1 |
Other | ||
Net revenue: | ||
Total net revenue | 22.7 | 20.6 |
Cost of revenue: | ||
Cost of revenue | $ 14.1 | $ 17.1 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 155.6 | $ 66.5 |
Other comprehensive (loss) income, net of reclassifications: | ||
Net gain on derivative instruments (net of tax effect of $(1.7) and $(0.4), respectively) | 10 | 4 |
Change in net unrealized gain on available-for-sale debt securities (net of tax effect of zero and $0.1, respectively) | 4 | 0.4 |
Change in defined benefit pension items (net of tax effect of zero and zero, respectively) | 0.1 | (0.3) |
Net change in cumulative foreign currency translation gain (loss) (net of tax effect of $(1.8) and zero, respectively) | 10.1 | (22.9) |
Total other comprehensive income (loss) | 24.2 | (18.8) |
Total comprehensive income | $ 179.8 | $ 47.7 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) gain on derivative instruments, tax expense (benefit) | $ (1,700,000) | $ (400,000) |
Change in net unrealized gain (loss) on available-for-sale securities, tax expense (benefit) | 0 | 100,000 |
Change in defined pension items, tax expense (benefit) | 0 | 0 |
Net change in cumulative foreign currency translation (loss) gain, tax expense (benefit) | $ (1,800,000) | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 923.2 | $ 1,772.2 |
Marketable securities | 0 | 4 |
Accounts receivable, net | 326.1 | 643.1 |
Prepaid expenses and other current assets | 256.1 | 206.2 |
Total current assets | 1,505.4 | 2,625.5 |
Computer equipment, software, furniture and leasehold improvements, net | 197.3 | 192.8 |
Operating lease right-of-use assets | 401.5 | 416.7 |
Developed technologies, net | 173.9 | 88.6 |
Goodwill | 3,484 | 2,706.5 |
Deferred income taxes, net | 743.7 | 763.1 |
Long-term other assets | 792.5 | 486.6 |
Total assets | 7,298.3 | 7,279.8 |
Current liabilities: | ||
Accounts payable | 124 | 122.5 |
Accrued compensation | 202.8 | 322.6 |
Accrued income taxes | 47.8 | 42.6 |
Deferred revenue | 2,540.7 | 2,500.9 |
Operating lease liabilities | 76 | 71.4 |
Other accrued liabilities | 138.8 | 194.7 |
Total current liabilities | 3,130.1 | 3,254.7 |
Long-term deferred revenue | 804.3 | 859.3 |
Long-term operating lease liabilities | 377.3 | 396 |
Long-term income taxes payable | 19.7 | 15.9 |
Long-term deferred income taxes | 55.4 | 11.4 |
Long-term notes payable, net | 1,637.9 | 1,637.2 |
Long-term other liabilities | 145.2 | 139.8 |
Stockholders’ equity: | ||
Common stock and additional paid-in capital | 2,639.4 | 2,578.9 |
Accumulated other comprehensive loss | (101.7) | (125.9) |
Accumulated deficit | (1,409.3) | (1,487.5) |
Total stockholders’ equity | 1,128.4 | 965.5 |
Total liabilities and stockholders' equity | $ 7,298.3 | $ 7,279.8 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Operating activities: | ||
Net income | $ 155,600,000 | $ 66,500,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 33,000,000 | 30,000,000 |
Stock-based compensation expense | 115,800,000 | 98,200,000 |
Deferred income taxes | 18,800,000 | 3,500,000 |
Other | 18,600,000 | 32,700,000 |
Changes in operating assets and liabilities, net of business combinations: | ||
Accounts receivable | 324,400,000 | 295,500,000 |
Prepaid expenses and other assets | (125,600,000) | (47,500,000) |
Accounts payable and other liabilities | (182,200,000) | (154,600,000) |
Deferred revenue | (27,500,000) | (1,100,000) |
Accrued income taxes | 5,200,000 | 4,100,000 |
Net cash provided by operating activities | 336,100,000 | 327,300,000 |
Investing activities: | ||
Purchases of marketable securities | 0 | (11,000,000) |
Sales and maturities of marketable securities | 4,000,000 | 0 |
Capital expenditures | (20,300,000) | (19,900,000) |
Purchases of developed technologies | (900,000) | (3,600,000) |
Business combinations, net of cash acquired | (1,031,600,000) | 0 |
Other investing activities | 8,400,000 | (43,500,000) |
Net cash used in investing activities | (1,040,400,000) | (78,000,000) |
Financing activities: | ||
Proceeds from issuance of common stock, net of issuance costs | 64,200,000 | 56,800,000 |
Taxes paid related to net share settlement of equity awards | (54,900,000) | (32,500,000) |
Repurchases of common stock | (151,400,000) | (202,000,000) |
Repayment of debt | 0 | (450,000,000) |
Other financing activities | 0 | (2,500,000) |
Net cash used in financing activities | (142,100,000) | (630,200,000) |
Effect of exchange rate changes on cash and cash equivalents | (2,600,000) | (4,100,000) |
Net decrease in cash and cash equivalents | (849,000,000) | (385,000,000) |
Cash and cash equivalents at beginning of period | 1,772,200,000 | 1,774,700,000 |
Cash and cash equivalents at end of period | 923,200,000 | 1,389,700,000 |
Non-cash financing activities: | ||
Fair value of common stock issued to settle liability-classified restricted stock units | 0 | 28,700,000 |
Fair value of common stock issued related to business combination | $ 2,600,000 | $ 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Autodesk, Inc. (“Autodesk,” “we,” “us,” “our,” or the “Company”) as of April 30, 2021, and for the three months ended April 30, 2021 and 2020, have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information along with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In management’s opinion, Autodesk made all adjustments (consisting of normal, recurring and non-recurring adjustments) during the quarter that were considered necessary for the fair statement of the financial position and operating results of the Company. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. In March 2020, the World Health Organization declared the outbreak of a disease caused by a novel strain of the coronavirus (COVID-19) to be a pandemic. This pandemic has created and may continue to create significant uncertainty in the macroeconomic environment which, in addition to other unforeseen effects of this pandemic, may adversely impact our results of operations. As the COVID-19 pandemic continues to develop, many of our estimates could require increased judgment and carry a higher degree of variability and volatility. As events continue to evolve our estimates may change materially in future periods. In addition, the results of operations for the three months ended April 30, 2021, are not necessarily indicative of the results for the entire fiscal year ending January 31, 2022, or for any other period. Further, the balance sheet as of January 31, 2021, has been derived from the audited Consolidated Balance Sheet as of this date. There have been no material changes, other than what is discussed herein, to Autodesk's significant accounting policies as compared to the significant accounting policies disclosed in the Annual Report on Form 10-K for the fiscal year ended January 31, 2021. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes, together with management’s discussion and analysis of financial position and results of operations, contained in Autodesk’s Annual Report on Form 10-K for the fiscal year ended January 31, 2021, filed on March 19, 2021. Change in presentation and immaterial correction of an error During the quarter ended April 30, 2021, the Company changed its presentation on the Condensed Consolidated Balance Sheets for investments in debt and equity securities that are held in a rabbi trust under non-qualified deferred compensation plans, including correcting the classification as current and non-current assets. These amounts were previously presented as current "Marketable securities" and are now presented as “Prepaid expenses and other current assets” and “Long-term other assets” on the Condensed Consolidated Balance Sheets. Accordingly, prior period amounts have been reclassified to conform to the current period presentation. These presentation and classification changes did not impact “Total assets” on the Condensed Consolidated Balance Sheets and had no impact on the Company's Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statement of Cash Flows. The effects of the changes on the Consolidated Balance Sheets as of January 31, 2021, were as follows: As Reported January 31, 2021 Effect of Changes in Presentation As Adjusted January 31, 2021 Marketable securities $ 85.0 $ (81.0) $ 4.0 Prepaid and other current assets 198.9 7.3 206.2 Long-term other assets 412.9 73.7 486.6 Total current assets 2,699.2 (73.7) 2,625.5 Total assets 7,279.8 $ — 7,279.8 |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Apr. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently issued accounting standards not yet adopted In March 2020, FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU No. 2020-04”), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments are effective for all entities as of March 12, 2020, through December 31, 2022. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Autodesk will apply the expedients in ASU No. 2020-04 through December 31, 2022. Autodesk does not believe ASU No. 2020-04 will have a material impact on its consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Apr. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue Disaggregation Autodesk recognizes revenue from the sale of (1) product subscriptions, cloud service offerings, and enterprise business agreements (“EBAs”), (2) renewal fees for existing maintenance plan agreements that were initially purchased with a perpetual software license, and (3) consulting, training, and other goods and services. The three categories are presented as line items on Autodesk's Condensed Consolidated Statements of Operations. Information regarding the components of Autodesk's net revenue from contracts with customers by product family, geographic location, sales channel, and product type is as follows: Three Months Ended April 30, 2021 2020 Net revenue by product family: Architecture, Engineering and Construction $ 442.6 $ 382.7 AutoCAD and AutoCAD LT 285.1 262.2 Manufacturing 197.3 182.9 Media and Entertainment 55.0 52.6 Other 9.3 5.3 Total net revenue $ 989.3 $ 885.7 Net revenue by geographic area: Americas U.S. $ 324.0 $ 300.6 Other Americas 67.7 61.6 Total Americas 391.7 362.2 Europe, Middle East and Africa 382.5 344.8 Asia Pacific 215.1 178.7 Total net revenue $ 989.3 $ 885.7 Net revenue by sales channel: Indirect $ 661.3 $ 623.4 Direct 328.0 262.3 Total net revenue $ 989.3 $ 885.7 Net revenue by product type: Design $ 885.1 $ 797.7 Make 81.5 67.4 Other 22.7 20.6 Total net revenue $ 989.3 $ 885.7 Payments for product subscriptions, industry collections, cloud subscriptions, and maintenance subscriptions are typically due up front with payment terms of 30 to 45 days. Payments on EBAs are typically due in annual installments over the contract term, with payment terms of 30 to 60 days. Autodesk does not have any material variable consideration, such as obligations for returns, refunds, warranties, or amounts due to customers for which significant estimation or judgment is required as of the reporting date. Remaining performance obligations consist of tota l short-term, long-term, a nd unbilled deferred revenue. As of April 30, 2021, Autodesk had remaining performance obligations of $4.23 billion, which represents the total contract price allocated to remaining performance obligations, which are generally recognized over the next three years. We expect to recognize $2.86 billion or 68% of our remaining performance obligations as revenue during the next 12 months. We expect to recognize the remaining $1.37 billion or 32% of our remaining performance obligations as revenue thereafter. The amount of remaining performance obligations may be impacted by the specific timing, duration, and size of customer subscription and support agreements, varying billing cycles of such agreements, the specific timing of customer renewals, and foreign currency fluctuations. Contract Balances We receive payments from customers based on a billing schedule as established in our contracts. Contract assets relate to performance completed in advance of scheduled billings. Contract assets were not material as of April 30, 2021. Deferred revenue relates to billings in advance of performance under the contract. The primary changes in our contract assets and deferred revenues are due to our performance under the contracts and billings. Revenue recognized during the three months ended April 30, 2021 and 2020, that was included in the deferred revenue balances at January 31, 2021 and 2020, was $838.2 million and $787.2 million, respectively. The satisfaction of performance obligations typically lags behind payments received under revenue contracts from customers. |
Concentration of Credit Risk
Concentration of Credit Risk | 3 Months Ended |
Apr. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk Autodesk places its cash, cash equivalents, and marketable securities in highly liquid instruments with, and in the custody of, multiple diversified financial institutions globally with high credit ratings, and limits the amounts invested with any one institution, type of security, and issuer. Autodesk’s primary commercial banking relationship is with Citigroup Inc. and its global affiliates. Citibank, N.A., an affiliate of Citigroup, is one of the lead lenders and an agent in the syndicate of Autodesk’s $650.0 million line of credit facility. See Note 14, “Borrowing Arrangements,” in the Notes to Condensed Consolidated Financial Statements for further discussion. Total sales to the Company's largest distributor Tech Data Corporation and its global affiliates (“Tech Data”) accounted for 36% and 38% of Autodesk’s total net revenue for the three months ended April 30, 2021 and 2020, respectively. The majority of the net revenue from sales to Tech Data is for sales made outside of the United States. In addition, Tech Data accounted for 36% and 26% of trade accounts receivable at April 30, 2021, and January 31, 2021, respectively. Ingram Micro Inc. ("Ingram Micro") accounted for 10% of Autodesk's total net revenue during both the three months ended April 30, 2021 and 2020. No other customer accounted for more than 10% of Autodesk's total net revenue or trade accounts receivable for each of the respective periods. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Apr. 30, 2021 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Financial Instruments The following tables summarize the Company's financial instruments' amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category as of April 30, 2021, and January 31, 2021: April 30, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level 1 Level 2 Level 3 Cash equivalents (1): Money market funds $ 174.5 $ — $ — $ 174.5 $ 174.5 $ — $ — Other (2) 1.5 — — 1.5 1.0 0.5 — Mutual funds (3) (4) 70.0 21.2 — 91.2 91.2 — — Strategic investments derivative assets (4) 0.1 0.4 (0.3) 0.2 — — 0.2 Derivative contract assets (4) 0.4 9.4 (0.2) 9.6 — 9.6 — Derivative contract liabilities (5) — — (10.7) (10.7) — (10.7) — Total $ 246.5 $ 31.0 $ (11.2) $ 266.3 $ 266.7 $ (0.6) $ 0.2 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of custody cash deposits and certificates of deposit. (3) See Note 12, “Deferred Compensation “for more information. (4) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. (5) Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets. January 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level 1 Level 2 Level 3 Cash equivalents (1): Commercial paper $ 36.0 $ — $ — $ 36.0 $ — $ 36.0 $ — Money market funds 686.9 — — 686.9 686.9 — — Other (2) 4.4 — — 4.4 4.0 0.4 — Marketable securities: Other (3) 4.0 — — 4.0 — 4.0 — Mutual funds (4) (5) 64.5 16.5 — 81.0 81.0 — — Strategic investments derivative asset (5) 0.1 0.4 (0.3) 0.2 — — 0.2 Derivative contract assets (5) 0.4 9.8 (0.4) 9.8 — 9.8 — Derivative contract liabilities (6) — — (17.5) (17.5) — (17.5) — Total $ 796.3 $ 26.7 $ (18.2) $ 804.8 $ 771.9 $ 32.7 $ 0.2 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of custody cash deposits and certificates of deposit. (3) Consists of commercial paper and municipal bonds. (4) See Note 12, “Deferred Compensation “ for more information. (5) Included in “Prepaid expenses and other current assets,” or “Long-term other assets,” in the accompanying Condensed Consolidated Balance Sheets. (6) Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets. Autodesk applies fair value accounting for certain financial assets and liabilities, which consist of cash equivalents, marketable securities, and other financial instruments, on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As of both April 30, 2021, and January 31, 2021, Autodesk had no material unrealized losses, individually and in the aggregate, for marketable debt securities that are in a continuous unrealized loss position for greater than 12 months. Total unrealized gains for securities with net gains in accumulated other comprehensive income were not material for the three months ended April 30, 2021. Autodesk monitors all marketable debt securities for potential credit losses by reviewing indicators such as, but not limited to, current credit rating, change in credit rating, credit outlook, and default risk. There were no allowances for credit losses for the three months ended April 30, 2021 and 2020. There were no write offs of accrued interest receivables for the three months ended April 30, 2021 and 2020. There was no realized gain or loss for the sales or redemptions of debt securities during the three months ended April 30, 2021 and 2020. Gains and losses resulting from the sale or redemption of debt securities are recorded in “Interest and other expense, net” on the Company's Condensed Consolidated Statements of Operations. There was $4.0 million in proceeds from the sale and maturity of marketable debt securities for the three months ended April 30, 2021. Autodesk did not have any proceeds from the sale and maturity of marketable securities for the three months ended April 30, 2020. Strategic investment equity securities As of April 30, 2021, and January 31, 2021, Autodesk had $129.8 million and $134.1 million, respectively, in direct investments in privately held companies. These strategic investment equity securities do not have readily determined fair values, and Autodesk uses the measurement alternative to account for the adjustment to these investments in a given quarter. If Autodesk determines that an impairment has occurred, Autodesk writes down the investment to its fair value. Adjustments to the carrying value of our strategic investment equity securities with no readily determined fair values measured using the measurement alternative were as follows: Three Months Ended April 30, Cumulative Amount as of 2021 2020 April 30, 2021 Upward adjustments (1) $ 0.7 $ 3.0 $ 16.7 Negative adjustments, including impairments (1) (3.7) (19.1) (64.3) Net adjustments $ (3.0) $ (16.1) $ (47.6) ____________________ (1) Included in “Interest and other expense, net” on the Company's Condensed Consolidated Statements of Operations. During the three months ended April 30, 2021, Autodesk recognized gains of $8.1 million on the disposition of strategic investment equity securities. Foreign currency contracts designated as cash flow hedges Autodesk uses foreign currency contracts to reduce the exchange rate impact on a portion of the net revenue or operating expense of certain anticipated transactions. These currency collars and forward contracts are designated and documented as cash flow hedges. The notional amounts of these contracts are presented net settled and were $1.18 billion at April 30, 2021, and $1.14 billion at January 31, 2021. Outstanding contracts are recognized as either assets or liabilities on the Company's Condensed Consolidated Balance Sheet at fair value. The majority of the net loss of $14.1 million remaining in “Accumulated other comprehensive loss” as of April 30, 2021, is expected to be recognized into earnings within the next 24 months. The location and amount of gain or loss recognized in income on cash flow hedges together with the total amount of income or expense presented in the Company's Condensed Consolidated Statements of Operations where the effects of the hedge are recorded were as follows for the three months ended April 30, 2021 and 2020: Three Months Ended April 30, 2021 Net revenue Cost of revenue Operating expenses Subscription revenue Maintenance revenue Cost of subscription and maintenance revenue Marketing and sales Research and development General and administrative Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded $ 947.5 $ 19.1 $ 68.5 $ 377.1 $ 265.5 $ 111.9 Gain on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of (loss) gain reclassified from accumulated other comprehensive income into income $ (4.9) $ (0.6) $ 0.3 $ 0.8 $ — $ 0.5 Three Months Ended April 30, 2020 Net Revenue Cost of revenue Operating expenses Subscription Revenue Maintenance Revenue Cost of subscription and maintenance revenue Marketing and sales Research and development General and administrative Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded $ 803.0 $ 62.1 $ 57.4 $ 341.3 $ 217.4 $ 104.8 Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 2.1 $ 0.6 $ (0.2) $ (0.8) $ (0.1) $ (0.4) Derivatives not designated as hedging instruments Autodesk uses foreign currency contracts that are not designated as hedging instruments to reduce the exchange rate risk associated primarily with foreign currency denominated receivables, payables, and cash. The notional amounts of these foreign currency contracts are presented net settled and were $112.8 million at April 30, 2021, and $434.5 million at January 31, 2021. Fair Value of Derivative Instruments The fair values of derivative instruments in Autodesk’s Condensed Consolidated Balance Sheets were as follows as of April 30, 2021, and January 31, 2021: Balance Sheet Location Fair Value at April 30, 2021 January 31, 2021 Derivative Assets Foreign currency contracts designated as cash flow hedges Prepaid expenses and other current assets $ 6.1 $ 4.7 Derivatives not designated as hedging instruments Prepaid expenses and other current assets and long-term other assets 3.7 5.3 Total derivative assets $ 9.8 $ 10.0 Derivative Liabilities Foreign currency contracts designated as cash flow hedges Other accrued liabilities $ 6.3 $ 16.5 Derivatives not designated as hedging instruments Other accrued liabilities 4.4 1.0 Total derivative liabilities $ 10.7 $ 17.5 The effects of derivatives designated as hedging instruments on Autodesk’s Condensed Consolidated Statements of Operations were as follows for the three months ended April 30, 2021 and 2020 (amounts presented include any income tax effects): Foreign Currency Contracts Three Months Ended April 30, 2021 2020 Amount of gain recognized in accumulated other comprehensive loss on derivatives (effective portion) $ 6.1 $ 5.1 Amount and location of (loss) gain reclassified from accumulated other comprehensive loss into income (effective portion) Net revenue $ (5.5) $ 2.7 Cost of revenue 0.3 (0.2) Operating expenses 1.3 (1.3) Total $ (3.9) $ 1.2 The effects of derivatives not designated as hedging instruments on Autodesk’s Condensed Consolidated Statements of Operations were as follows for the three months ended April 30, 2021 and 2020 (amounts presented include any income tax effects): Three Months Ended April 30, 2021 2020 Amount and location of gain (loss) recognized on derivatives in net income Interest and other expense, net $ 6.9 $ (1.0) |
Equity Compensation
Equity Compensation | 3 Months Ended |
Apr. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity Compensation | Equity Compensation Restricted Stock Units: A summary of restricted stock activity for the three months ended April 30, 2021, is as follows: Unvested Weighted (in thousands) Unvested restricted stock units at January 31, 2021 4,503.9 $ 191.91 Granted 1,582.8 292.20 Vested (558.4) 161.69 Canceled/Forfeited (112.6) 198.93 Performance Adjustment (1) (7.9) 137.02 Unvested restricted stock units at April 30, 2021 5,407.8 $ 226.12 _______________ (1) Based on Autodesk's financial results and relative total stockholder return for the fiscal 2021 performance period. The performance stock units were attained at rates ranging from 103.0% to 108.0% of the target award. The fair value of the shares vested during the three months ended April 30, 2021 and 2020, was $148.8 million and $111.4 million, respectively. During the three months ended April 30, 2021, Autodesk granted 1.3 million restricted stock units. Autodesk recorded stock-based compensation expense related to restricted stock units of $89.6 million and $76.9 million during the three months ended April 30, 2021 and 2020, respectively. During the three months ended April 30, 2021 and 2020, Autodesk settled liability-classified awards in the amount of zero and $28.7 million, respectively. The ultimate number of shares earned was based on the Autodesk closing stock price on the vesting date. As these awards were settled in a fixed dollar amount of shares, the awards were accounted for as a liability-classified award and were expensed using the straight-line method over the vesting period. During the three months ended April 30, 2021, Autodesk granted 0.2 million performance stock units for which the ultimate number of shares earned is determined based on the achievement of performance criteria at the end of the stated service and performance period. The performance criteria for the performance stock units vested during the three months ended April 30, 2021, are based on revenue and free cash flow goals adopted by the Compensation and Human Resource Committee and, as applicable, total stockholder return compared against companies in the S&P North American Technology Software Index with a market capitalization over $2.0 billion (“Relative TSR”). The fair value of the performance stock units is expensed using the accelerated attribution method over the three-year vesting period and have the following vesting schedule: • Up to one third of the performance stock units may vest following year one, depending upon the achievement of the performance criteria for fiscal 2022 as well as 1-year Relative TSR (covering year one). • Up to one third of the performance stock units may vest following year two, depending upon the achievement of the performance criteria for year two as well as 2-year Relative TSR (covering years one and two). • Up to one third of the performance stock units may vest following year three, depending upon the achievement of the performance criteria for year three as well as 3-year Relative TSR (covering years one, two and three). Additionally, during the three months ended April 30, 2021, Autodesk granted 96,564 performance stock units, as part of a program offering certain employees the option to receive equity in lieu of the opportunity to receive an annual cash incentive award. The ultimate number of shares earned is determined based on the achievement of performance criteria at the end of the stated service and performance period. The performance criteria for the performance stock units are based on revenue and Non-GAAP income from operations targets adopted by the Compensation and Human Resource Committee. The fair value of these performance stock units is expensed using the accelerated attribution method over the one-year vesting period. Performance stock units are not considered outstanding stock at the time of grant, as the holders of these units are not entitled to any of the rights of a stockholder, including voting rights. Autodesk recorded stock-based compensation expense related to performance stock units of $11.8 million and $7.4 million for the three months ended April 30, 2021 and 2020, respectively. Common Stock: Autodesk agreed to issue a fixed amount of $4.9 million in common stock at a future date to certain employees in connection with a fiscal 2021 acquisition. Issuance of the common stock is dependent on the respective employees’ continued employment through the vesting period. The number of shares to be issued will be determined based on the fair value of Autodesk’s common stock at the issuance date. Shares to be issued are estimated to be 16,786 based on the closing price of Autodesk’s common stock on April 30, 2021, the last trading day of the fiscal quarter. The awards are accounted for as liability-classified awards and are recognized as compensation expense using the straight-line method over the vesting period. Autodesk issued 73,632 shares of restricted common stock to certain employees in connection with a fiscal 2021 acquisition. These shares of restricted common stock are subject to forfeiture by the employee if employment terminates prior to the three-year employment period. The fair value of the restricted common stock is recorded as compensation for post-acquisition services and recognized as expense using the straight-line method over the three-year repurchase period. Autodesk issued 9,277 shares of restricted common stock to certain employees in connection with a fiscal 2022 acquisition. These shares of restricted common stock were recorded as “Prepaid expenses and other current assets” and “Long-term other assets” on our Condensed Consolidated Balance Sheets and will be amortized to stock-based compensation expense for post-acquisition services using the straight-line method over the two-year vesting period. See Note 8, “Acquisitions,” for further discussion. Autodesk recorded stock-based compensation expense related to common stock shares of $2.6 million and zero for the three months ended April 30, 2021 and 2020, respectively. 1998 Employee Qualified Stock Purchase Plan (“ESPP”) Under Autodesk’s ESPP, which was approved by stockholders in 1998, eligible employees may purchase shares of Autodesk’s common stock at their discretion using up to 15% of their eligible compensation, subject to certain limitations, at 85% of the lower of Autodesk's closing price (fair market value) on the offering date or the exercise date. The offering period for ESPP awards consists of four, six-month exercise periods within a 24-month offering period. A summary of the ESPP activity for the three months ended April 30, 2021 and 2020, is as follows: Three Months Ended April 30, 2021 2020 Issued shares (in millions) 0.5 0.5 Average price of issued shares $ 128.02 $ 122.54 Weighted average grant date fair value of shares granted under the ESPP (1) $ 91.17 $ 45.70 _______________ (1) Calculated as of the award grant date using the Black-Scholes Merton (“BSM”) option pricing model. Stock-based Compensation Expense The following table summarizes stock-based compensation expense for the three months ended April 30, 2021 and 2020, respectively, as follows: Three Months Ended April 30, 2021 2020 Cost of subscription and maintenance revenue $ 5.3 $ 3.7 Cost of other revenue 1.8 1.5 Marketing and sales 48.3 40.7 Research and development 46.7 32.9 General and administrative 13.7 19.4 Stock-based compensation expense related to stock awards and ESPP purchases 115.8 98.2 Tax benefit (16.0) (0.1) Stock-based compensation expense related to stock awards and ESPP purchases, net of tax $ 99.8 $ 98.1 Stock-based Compensation Expense Assumptions Autodesk determines the grant date fair value of its share-based payment awards using a BSM option pricing model or the quoted stock price on the date of grant, unless the awards are subject to market conditions, in which case Autodesk uses a binomial-lattice model (e.g., Monte Carlo simulation model). The Monte Carlo simulation model uses multiple input variables to estimate the probability that market conditions will be achieved. Autodesk uses the following assumptions to estimate the fair value of stock-based awards: Three Months Ended April 30, 2021 Three Months Ended April 30, 2020 Performance Stock Units ESPP Performance Stock Units ESPP Range of expected volatility 36.9% 36.5 - 41.8% 50.7% 39.4 - 45.8% Range of expected lives (in years) N/A 0.5- 2.0 N/A 0.5 - 2.0 Expected dividends —% —% —% —% Range of risk-free interest rates 0.1% 0.1- 0.2% 0.3% 0.3 - 0.5% Autodesk estimates expected volatility for stock-based awards based on the average of the following two measures: (1) a measure of historical volatility in the trading market for the Company’s common stock, and (2) the implied volatility of traded forward call options to purchase shares of the Company’s common stock. The expected volatility for performance stock units subject to market conditions includes the expected volatility of Autodesk's peer companies within the S&P North American Technology Software Index with a market capitalization over $2.0 billion, depending on the award type. The range of expected lives of ESPP awards are based upon the four, six-month exercise periods within a 24-month offering period. Autodesk does not currently pay, and does not anticipate paying in the foreseeable future, any cash dividends. Consequently, an expected dividend yield of zero is used in the BSM option pricing model and the Monte Carlo simulation model. The risk-free interest rate used in the BSM option pricing model and the Monte Carlo simulation model for stock-based awards is the historical yield on U.S. Treasury securities with equivalent remaining lives. Autodesk recognizes expense only for the stock-based awards that ultimately vest. Autodesk accounts for forfeitures of our stock-based awards as those forfeitures occur. |
Income Tax
Income Tax | 3 Months Ended |
Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax Autodesk had income tax benefit of $24.2 million, relative to pre-tax income of $131.4 million for the three months ended April 30, 2021, and income tax expense of $24.0 million, relative to pre-tax income of $90.5 million for the three months ended April 30, 2020. Income tax benefit for the three months ended April 30, 2021, reflects a decrease in tax expense due to a discrete tax benefit primarily related to a Supreme Court decision in India on the taxability of software license payments to nonresidents and the associated withholding taxes, offset by an increase in tax expense from jurisdictional mix of year-to-date earnings relative to the worldwide annual effective tax rate. Autodesk regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, Autodesk considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. We have maintained a valuation allowance on our Netherlands, Canada, California, Michigan and capital loss deferred tax assets as it is more likely than not that some or all of the deferred tax assets will not be realized. As of April 30, 2021, the Company had $200.5 million of gross unrecognized tax benefits, of which $32.1 million would reduce our valuation allowance, if recognized. The remaining $168.4 million would impact the effective tax rate, if recognized. It is possible that the amount of unrecognized tax benefits will decrease in the next 12 months for an audit settlement of approximately $8.2 million. |
Acquisitions
Acquisitions | 3 Months Ended |
Apr. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On March 31, 2021, Autodesk acquired all of the outstanding stock of Storm UK Holdco Limited, the parent of Innovyze, Inc. (“Innovyze”), a global leader in water infrastructure software. Innovyze is expected to provide comprehensive water modeling solutions that augment Autodesk’s BIM offerings in civil engineering, and is expected to extend Autodesk’s presence into operations and maintenance of water infrastructure assets. The results of operations for the acquisition were included in the accompanying Condensed Consolidated Statement of Operations from the date of the acquisition. Pro forma results of operations have not been presented because the effects of the acquisition were not material to Autodesk's Condensed Consolidated Financial Statements. The acquisition-date fair value of the consideration transferred totaled $1,040.9 million, which consisted of $1,038.3 million of cash and 9,277 shares of Autodesk’s restricted common stock at an aggregate fair value of $2.6 million. Of the total consideration transferred, $1,038.3 million is considered purchase consideration. The remaining amount of $2.6 million was recorded in “Prepaid expenses and other current assets” and “Long-term other assets”. The 9,277 shares of restricted common stock are subject to forfeiture until the second anniversary of the acquisition closing date. 50% are released from restriction on both the first and second anniversaries subject to continued employment. See Note 6, “Equity Compensation” for further discussion. The acquisition was accounted for as business combination, and 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. The goodwill recorded was primarily attributable to synergies expected to arise after the acquisition. Goodwill of $376.2 million is deductible for U.S. income tax purposes. The transaction costs related to the acquisition were not material. The following table summarizes the fair value of the assets acquired and liabilities assumed by major class for the business combination that was completed during the three months ended April 30, 2021: Aggregate Total Developed technologies $ 93.0 Customer relationships 221.0 Trade name 4.0 Backlog 0.5 Goodwill 767.2 Deferred revenue and long-term deferred revenue (12.3) Long-term deferred income taxes (42.4) Net tangible assets 7.3 Total $ 1,038.3 |
Other Intangible Assets, Net
Other Intangible Assets, Net | 3 Months Ended |
Apr. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets, Net | Other Intangible Assets, Net Other intangible assets, including developed technologies, customer relationships, trade names, patents, user lists, and the related accumulated amortization, were as follows: April 30, 2021 January 31, 2021 Developed technologies, at cost $ 794.1 $ 698.4 Customer relationships, trade names, patents, and user lists, at cost (1) 775.5 548.8 Other intangible assets, at cost (2) 1,569.6 1,247.2 Less: Accumulated amortization (1,066.5) (1,047.9) Other intangible assets, net $ 503.1 $ 199.3 _______________ (1) Included in “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. (2) Includes the effects of foreign currency translation. |
Cloud Computing Arrangements
Cloud Computing Arrangements | 3 Months Ended |
Apr. 30, 2021 | |
Capitalized Contract Cost [Abstract] | |
Cloud Computing Arrangements | Revenue Recognition Revenue Disaggregation Autodesk recognizes revenue from the sale of (1) product subscriptions, cloud service offerings, and enterprise business agreements (“EBAs”), (2) renewal fees for existing maintenance plan agreements that were initially purchased with a perpetual software license, and (3) consulting, training, and other goods and services. The three categories are presented as line items on Autodesk's Condensed Consolidated Statements of Operations. Information regarding the components of Autodesk's net revenue from contracts with customers by product family, geographic location, sales channel, and product type is as follows: Three Months Ended April 30, 2021 2020 Net revenue by product family: Architecture, Engineering and Construction $ 442.6 $ 382.7 AutoCAD and AutoCAD LT 285.1 262.2 Manufacturing 197.3 182.9 Media and Entertainment 55.0 52.6 Other 9.3 5.3 Total net revenue $ 989.3 $ 885.7 Net revenue by geographic area: Americas U.S. $ 324.0 $ 300.6 Other Americas 67.7 61.6 Total Americas 391.7 362.2 Europe, Middle East and Africa 382.5 344.8 Asia Pacific 215.1 178.7 Total net revenue $ 989.3 $ 885.7 Net revenue by sales channel: Indirect $ 661.3 $ 623.4 Direct 328.0 262.3 Total net revenue $ 989.3 $ 885.7 Net revenue by product type: Design $ 885.1 $ 797.7 Make 81.5 67.4 Other 22.7 20.6 Total net revenue $ 989.3 $ 885.7 Payments for product subscriptions, industry collections, cloud subscriptions, and maintenance subscriptions are typically due up front with payment terms of 30 to 45 days. Payments on EBAs are typically due in annual installments over the contract term, with payment terms of 30 to 60 days. Autodesk does not have any material variable consideration, such as obligations for returns, refunds, warranties, or amounts due to customers for which significant estimation or judgment is required as of the reporting date. Remaining performance obligations consist of tota l short-term, long-term, a nd unbilled deferred revenue. As of April 30, 2021, Autodesk had remaining performance obligations of $4.23 billion, which represents the total contract price allocated to remaining performance obligations, which are generally recognized over the next three years. We expect to recognize $2.86 billion or 68% of our remaining performance obligations as revenue during the next 12 months. We expect to recognize the remaining $1.37 billion or 32% of our remaining performance obligations as revenue thereafter. The amount of remaining performance obligations may be impacted by the specific timing, duration, and size of customer subscription and support agreements, varying billing cycles of such agreements, the specific timing of customer renewals, and foreign currency fluctuations. Contract Balances We receive payments from customers based on a billing schedule as established in our contracts. Contract assets relate to performance completed in advance of scheduled billings. Contract assets were not material as of April 30, 2021. Deferred revenue relates to billings in advance of performance under the contract. The primary changes in our contract assets and deferred revenues are due to our performance under the contracts and billings. Revenue recognized during the three months ended April 30, 2021 and 2020, that was included in the deferred revenue balances at January 31, 2021 and 2020, was $838.2 million and $787.2 million, respectively. The satisfaction of performance obligations typically lags behind payments received under revenue contracts from customers. |
Goodwill
Goodwill | 3 Months Ended |
Apr. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill consists of the excess of the consideration transferred over the fair value of net assets acquired in business combinations. The following table summarizes the changes in the carrying amount of goodwill for the three months ended April 30, 2021, (in millions): Balance as of January 31, 2021 $ 2,855.7 Less: accumulated impairment losses as of January 31, 2021 (149.2) Net balance as of January 31, 2021 2,706.5 Additions arising from acquisitions during the period 767.2 Effect of foreign currency translation 10.3 Balance as of April 30, 2021 $ 3,484.0 Autodesk operates as a single operating segment and single reporting unit. As such, when Autodesk tests goodwill for impairment annually in its fourth fiscal quarter, it is performed on the Company's single reporting unit. Autodesk performs impairment testing more often if circumstances indicate a potential impairment may exist, or if events have affected the composition of reporting units. When goodwill is assessed for impairment, Autodesk has the option to perform an assessment of qualitative factors of impairment (“optional assessment”) prior to necessitating a quantitative impairment test. Should the optional assessment be used for any given fiscal year, qualitative factors to consider include cost factors; financial performance; legal, regulatory, contractual, political, business, or other factors; entity specific factors; industry and market considerations, macroeconomic conditions, and other relevant events and factors affecting the reporting unit. If, after assessing the totality of events or circumstances, it is more likely than not that the fair value of the reporting unit is greater than its carrying value, then performing the quantitative impairment test is unnecessary. The quantitative impairment test is necessary when either Autodesk does not use the optional assessment or, as a result of the optional assessment, it is not more likely than not that the fair value of the reporting unit is greater than its carrying value. In situations in which an entity’s reporting unit is publicly traded, the fair value of the company may be approximated by its market capitalization in performing the quantitative impairment test. Goodwill impairment exists when the estimated fair value of goodwill is less than its carrying value. If impairment exists, the carrying value of the goodwill is reduced to fair value through an impairment charge recorded in our Condensed Consolidated Statements of Operations. The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment at many points during the analysis. The value of Autodesk’s goodwill could also be impacted by future adverse changes such as: (i) declines in Autodesk’s actual financial results, (ii) a sustained decline in Autodesk’s market capitalization, (iii) a significant slowdown in the worldwide economy or the industries Autodesk serves, or (iv) changes in Autodesk’s business strategy. There was no goodwill impairment during both the three months ended April 30, 2021 and 2020. |
Deferred Compensation
Deferred Compensation | 3 Months Ended |
Apr. 30, 2021 | |
Deferred Compensation Arrangements [Abstract] | |
Deferred Compensation | Deferred Compensation At April 30, 2021, Autodesk had investments in debt and equity securities that are held in a rabbi trust under non-qualified deferred compensation plans and a corresponding deferred compensation liability totaling $91.2 million. Of this amount, $7.6 million was classified as current and $83.6 million was classified as non-current in the Condensed Consolidated Balance Sheets. Of the $81.0 million related to the investments in a rabbi trust as of January 31, 2021, $7.3 million was classified as current and $73.7 million was classified as non-current. The current and non-current asset portions of the investments in debt and equity securities that are held in a rabbi trust under non-qualified deferred compensation plans are recorded in the Condensed Consolidated Balance Sheets under “Prepaid expenses and other current assets” and “Long-term other assets,” respectively. The current and non-current portions of the liability are recorded in the Condensed Consolidated Balance Sheets under “Accrued compensation” and “Long-term other liabilities,” respectively See Note 1 “Basis of Presentation” for a change in the presentation and immaterial correction of an error on the Condensed Consolidated Balance Sheets for investments in debt and equity securities that are held in a rabbi trust.Costs to obtain a contract with a customerSales commissions earned by our internal sales personnel and our reseller partners are considered incremental and recoverable costs of obtaining a contract with a customer. The ending balance of assets recognized from costs to obtain a contract with a customer was $118.1 million as of April 30, 2021, and $120.9 million as of January 31, 2021. These assets are recorded in “Prepaid expenses and other current assets” and “Long-term other assets” in the Condensed Consolidated Balance Sheets. Amortization expense related to assets recognized from costs to obtain a contract with a customer was $25.8 million and $22.8 million during the three months ended April 30, 2021 and 2020, respectively. Autodesk did not recognize any contract cost impairment losses during the three months ended April 30, 2021 and 2020. |
Computer Equipment, Software, L
Computer Equipment, Software, Leasehold Improvements, and Furniture, Net | 3 Months Ended |
Apr. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Computer Equipment, Software, Leasehold Improvements, and Furniture, Net | Computer Equipment, Software, Leasehold Improvements, and Furniture, Net Computer equipment, software, leasehold improvements, and furniture and equipment and the related accumulated depreciation were as follows: April 30, 2021 January 31, 2021 Computer hardware, at cost $ 155.4 $ 153.3 Computer software, at cost 58.9 57.9 Leasehold improvements, land and buildings, at cost 344.7 335.9 Furniture and equipment, at cost 92.1 88.4 651.1 635.5 Less: Accumulated depreciation (453.8) (442.7) Computer hardware, software, leasehold improvements, and furniture and equipment, net $ 197.3 $ 192.8 |
Borrowing Arrangements
Borrowing Arrangements | 3 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | Borrowing Arrangements In January 2020, Autodesk issued $500.0 million aggregate principal amount of 2.85% notes due January 15, 2030 (“2020 Notes”). Net of a discount of $1.1 million and issuance costs of $4.8 million, Autodesk received net proceeds of $494.1 million from issuance of the 2020 Notes. Both the discount and issuance costs are being amortized to interest expense over the term of the 2020 Notes using the effective interest method. The proceeds of the 2020 Notes were used for the repayment of the $450.0 million 2015 Notes, as defined below, and the remainder is available for general corporate purposes. In December 2018, Autodesk entered into a credit agreement by and among Autodesk, the lenders from time to time party thereto, and Citibank, N.A., as agent, which provides for an unsecured revolving loan facility in the aggregate principal amount of $650.0 million with an option, subject to customary conditions, to request an increase in the amount of the credit facility by up to an additional $350.0 million, and is available for working capital or other business needs. The credit agreement contains customary covenants that could, among other things, restrict the imposition of liens on Autodesk’s assets, and restrict Autodesk’s ability to incur additional indebtedness or make dispositions of assets if Autodesk fails to maintain compliance with the financial covenants. The credit agreement financial covenants consist of (1) a minimum interest coverage ratio of 3.00:1.0 and (2) a maximum leverage ratio of 3.00:1.0. At April 30, 2021, Autodesk was in compliance with the credit agreement covenants. Revolving loans under the credit agreement bear interest, at Autodesk’s option, at either (i) a floating rate per annum equal to the base rate plus a margin of between 0.000% and 0.500%, depending on Autodesk’s Public Debt Rating (as defined in the credit agreement) or (ii) a per annum rate equal to the rate at which dollar deposits are offered in the London interbank market, plus a margin of between 0.900% and 1.500%, depending on Autodesk’s Public Debt Rating. The maturity date on the credit agreement is December 2023. In June 2017, Autodesk issued $500.0 million aggregate principal amount of 3.5% notes due June 15, 2027 (the “2017 Notes”). Net of a discount of $3.1 million and issuance costs of $4.9 million, Autodesk received net proceeds of $492.0 million from issuance of the 2017 Notes. Both the discount and issuance costs are being amortized to interest expense over the term of the 2017 Notes using the effective interest method. The proceeds of the 2017 Notes have been used for the repayment of $400.0 million of debt due December 15, 2017, and the remainder is available for general corporate purposes. In June 2015, Autodesk issued $300.0 million aggregate principal amount of 4.375% notes due June 15, 2025 (“2015 Notes”). Net of a discount of $1.1 million, and issuance costs of $2.5 million, Autodesk received net proceeds of $296.4 million from issuance of the 2015 Notes. Both the discount and issuance costs are being amortized to interest expense over the respective term of the 2015 Notes using the effective interest method. The proceeds of the 2015 Notes is available for general corporate purposes. In December 2012, Autodesk issued $350.0 million aggregate principal amount of 3.6% notes due December 15, 2022 (“2012 Notes”). Autodesk received net proceeds of $346.7 million from issuance of the 2012 Notes, net of a discount of $0.5 million and issuance costs of $2.8 million. Both the discount and issuance costs are being amortized to interest expense over the respective terms of the 2012 Notes using the effective interest method. The proceeds of the 2012 Notes are available for general corporate purposes. The 2020 Notes, 2017 Notes, 2015 Notes and the 2012 Notes may all be redeemed at any time, subject to a make whole premium. In addition, upon the occurrence of certain change of control triggering events, Autodesk may be required to repurchase all the aforementioned notes, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the date of repurchase. All notes contain restrictive covenants that limit Autodesk's ability to create certain liens, to enter into certain sale and leaseback transactions and to consolidate or merge with, or convey, transfer, or lease all or substantially all of its assets, subject to important qualifications and exceptions. Based on the quoted market prices, the approximate fair value of the notes as of April 30, 2021, were as follows: Aggregate Principal Amount Fair value 2012 Notes $ 350.0 $ 364.6 2015 Notes 300.0 335.7 2017 Notes 500.0 551.3 2020 Notes 500.0 522.3 The expected future principal payments for all borrowings as of April 30, 2021, is as follows (in millions): Fiscal year ending 2022 (remainder) $ — 2023 350.0 2024 — 2025 — 2026 300.0 Thereafter 1,000.0 Total principal outstanding $ 1,650.0 |
Leases
Leases | 3 Months Ended |
Apr. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases Autodesk has operating leases for real estate, vehicles, and certain equipment. Leases have remaining lease terms of less than 1 year to 69 years, some of which include options to extend the lease with renewal terms from 1 year to 10 years and some of which include options to terminate the leases from less than 1 year to 9 years. Options to extend the lease are included in the lease liability if they are reasonably certain of being exercised. Payments under our lease arrangements are primarily fixed; however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities. These amounts include payments affected by the Consumer Price Index, payments for common area maintenance that are subject to annual reconciliation, and payments for maintenance and utilities. The Company’s leases do not contain residual value guarantees or material restrictive covenants. Short-term leases are recognized in the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term. Short-term lease expense was not material for the periods presented. Changes in operating lease right-of-use assets and operating lease liabilities are presented net in the “accounts payable and other liabilities” line in the Condensed Consolidated Statements of Cash Flows. The components of lease cost were as follows: Three Months Ended April 30, 2021 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 1.9 $ 0.5 $ 10.8 $ 8.0 $ 3.7 $ 24.9 Variable lease cost 0.4 0.1 2.3 1.7 0.8 5.3 Three Months Ended April 30, 2020 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 2.0 $ 0.7 $ 11.5 $ 7.9 $ 3.4 $ 25.5 Variable lease cost 0.3 0.1 1.5 1.1 0.4 3.4 Supplemental operating cash flow information related to leases is as follows: Three Months Ended April 30, 2021 2020 Cash paid for operating leases included in operating cash flows (1) $ 29.9 $ 24.9 Non-cash operating lease liabilities arising from obtaining operating lease right-of-use assets 4.5 8.5 _______________ (1) Includes $5.3 million and $3.4 million in variable lease payments for the three months ended April 30, 2021 and 2020, respectively, not included in “Operating lease liabilities” and “Long-term operating lease liabilities” on the Condensed Consolidated Balance Sheets. The weighted average remaining lease term for operating leases is 7.1 and 7.3 years at April 30, 2021, and January 31, 2021, respectively. The weighted average discount rate was 2.66% and 2.69% at April 30, 2021, and January 31, 2021, respectively. Maturities of operating lease liabilities were as follows: Fiscal year ending 2022 (remainder) $ 61.1 2023 98.2 2024 80.3 2025 59.6 2026 45.3 Thereafter 148.8 493.3 Less imputed interest 40.0 Present value of operating lease liabilities $ 453.3 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guarantees and Indemnifications In the normal course of business, Autodesk provides indemnifications of varying scopes, including limited product warranties and indemnification of customers against claims of intellectual property infringement made by third parties arising from the use of its products or services. Autodesk accrues for known indemnification issues if a loss is probable and can be reasonably estimated. Historically, costs related to these indemnifications have not been significant, and because potential future costs are highly variable, Autodesk is unable to estimate the maximum potential impact of these indemnifications on its future results of operations. In connection with the purchase, sale, or license of assets or businesses with third parties, Autodesk has entered into or assumed customary indemnification agreements related to the assets or businesses purchased, sold, or licensed. Historically, costs related to these indemnifications have not been significant, and because potential future costs are highly variable, Autodesk is unable to estimate the maximum potential impact of these indemnifications on its future results of operations. As permitted under Delaware law, Autodesk has agreements whereby it indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at Autodesk’s request in such capacity. The maximum potential amount of future payments Autodesk could be required to make under these indemnification agreements is unlimited; however, Autodesk has directors’ and officers’ liability insurance coverage that is intended to reduce its financial exposure and may enable Autodesk to recover a portion of any future amounts paid. Autodesk believes the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal. Legal Proceedings Autodesk is involved in a variety of claims, suits, investigations, inquiries, and proceedings in the normal course of business including claims of alleged infringement of intellectual property rights, commercial, employment, tax, prosecution of unauthorized use, business practices, and other matters. Autodesk routinely reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any matter is considered probable and the amount can be reasonably estimated, Autodesk records a liability for the estimated loss. Because of inherent uncertainties related to these legal matters, Autodesk bases its loss accruals on the best information available at the time. As additional information becomes available, Autodesk reassesses its potential liability and may revise its estimates. In the Company's opinion, resolution of pending matters is not expected to have a material adverse impact on its consolidated results of operations, cash flows, or its financial position. Given the unpredictable nature of legal proceedings, there is a reasonable possibility that an unfavorable resolution of one or more such proceedings could in the future materially affect the Company's results of operations, cash flows, or financial position in a particular period, however, based on the information known by the Company as of the date of this filing and the rules and regulations applicable to the preparation of the Company's financial statements, any such amount is either immaterial or it is not possible to provide an estimated amount of any such potential loss. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Changes in stockholders' equity by component, net of tax, for the three months ended April 30, 2021, are as follows: (in millions, except per share data) Common stock and additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' equity Shares Amount Balances, January 31, 2021 219.6 $ 2,578.9 $ (125.9) $ (1,487.5) $ 965.5 Common shares issued under stock plans 0.9 9.0 9.0 Stock-based compensation expense 114.1 114.1 Post-combination expense related to equity awards assumed 0.1 0.1 Shares issued related to business combination 2.6 2.6 Net income 155.6 155.6 Other comprehensive income 24.2 24.2 Repurchase and retirement of common shares (0.5) (65.3) (77.4) (142.7) Balances, April 30, 2021 220.0 $ 2,639.4 $ (101.7) $ (1,409.3) $ 1,128.4 ________________ (1) During the three months ended April 30, 2021, Autodesk repurchased 0.5 million shares at an average repurchase price of $276.96 per share. At April 30, 2021, 11.6 million shares remained available for repurchase under the repurchase program approved by the Board of Directors. Changes in stockholders' deficit by component, net of tax, for the three months ended April 30, 2020, are as follows: Common stock and additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' deficit Shares Amount Balances, January 31, 2020 219.4 $ 2,317.0 $ (160.3) $ (2,295.8) $ (139.1) Common shares issued under stock plans 1.0 24.3 — — 24.3 Stock-based compensation expense — 88.2 — — 88.2 Settlement of liability-classified restricted stock units — 28.7 — — 28.7 Post-combination expense related to equity awards assumed — 0.1 — — 0.1 Net income — — — 66.5 66.5 Other comprehensive loss — — (18.8) — (18.8) Repurchase and retirement of common shares (1.2) (57.0) — (132.0) (189.0) Balances, April 30, 2020 219.2 $ 2,401.3 $ (179.1) $ (2,361.3) $ (139.1) ________________ |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, net of taxes, consisted of the following at April 30, 2021: Net Unrealized Gains (Losses) on Derivative Instruments Net Unrealized Gains on Available-for-Sale Debt Securities Defined Benefit Pension Components Foreign Currency Translation Adjustments Total Balances, January 31, 2021 $ (24.1) $ 6.4 $ (21.3) $ (86.9) $ (125.9) Other comprehensive income before reclassifications 7.8 4.0 — 11.9 23.7 Pre-tax losses reclassified from accumulated other comprehensive loss 3.9 — 0.1 — 4.0 Tax effects (1.7) — — (1.8) (3.5) Net current period other comprehensive income 10.0 4.0 0.1 10.1 24.2 Balances, April 30, 2021 $ (14.1) $ 10.4 $ (21.2) $ (76.8) $ (101.7) Accumulated other comprehensive loss, net of taxes, consisted of the following at April 30, 2020: Net Unrealized Gains (Losses) on Derivative Instruments Net Unrealized Gains on Available-for-Sale Debt Securities Defined Benefit Pension Components Foreign Currency Translation Adjustments Total Balances, January 31, 2020 $ 8.4 $ 4.7 $ (22.8) $ (150.6) $ (160.3) Other comprehensive income (loss) before reclassifications 5.6 0.2 — (22.9) (17.1) Pre-tax (gains) losses reclassified from accumulated other comprehensive loss (1.2) 0.1 (0.3) — (1.4) Tax effects (0.4) 0.1 — — (0.3) Net current period other comprehensive income (loss) 4.0 0.4 (0.3) (22.9) (18.8) Balances, April 30, 2020 $ 12.4 $ 5.1 $ (23.1) $ (173.5) $ (179.1) Reclassifications related to gains and losses on available-for-sale debt securities are included in “Interest and other expense, net.” Refer to Note 5, “Financial Instruments,” for the amount and location of reclassifications related to derivative instruments. Reclassifications of the defined benefit pension components of net periodic benefit cost are included in “Interest and other expense, net.” |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Apr. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income per share is computed using the weighted average number of shares of common stock outstanding for the period, excluding stock options and restricted stock units. Diluted net income per share is based upon the weighted average number of shares of common stock outstanding for the period and potentially dilutive common shares, including the effect of stock options and restricted stock units under the treasury stock method. The following table sets forth the computation of the numerators and denominators used in the basic and diluted net income per share amounts: Three Months Ended April 30, 2021 2020 Numerator: Net income $ 155.6 $ 66.5 Denominator: Denominator for basic net income per share—weighted average shares 219.6 219.2 Effect of dilutive securities 2.4 2.1 Denominator for dilutive net income per share 222.0 221.3 Basic net income per share $ 0.71 $ 0.30 Diluted net income per share $ 0.70 $ 0.30 |
Segments
Segments | 3 Months Ended |
Apr. 30, 2021 | |
Segment Reporting [Abstract] | |
Segments | Segments Autodesk operates in one operating segment and accordingly, all required financial segment information is included in the condensed consolidated financial statements. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision makers (“CODM”) in deciding how to allocate resources and assess performance. Autodesk reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions, allocating resources, and assessing performance as the source of the Company’s reportable segments. The Company’s CODM allocates resources and assesses the operating performance of the Company as a whole. Information regarding Autodesk’s long-lived assets by geographic area is as follows: April 30, 2021 January 31, 2021 Long-lived assets (1): Americas U.S. $ 414.2 $ 423.6 Other Americas 30.6 29.5 Total Americas 444.8 453.1 Europe, Middle East, and Africa 108.4 109.7 Asia Pacific 45.6 46.7 Total long-lived assets $ 598.8 $ 609.5 ____________________ |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn May 11, 2021, Autodesk acquired 100% of the outstanding equity of Upchain Inc. (“Upchain”), a cloud-based provider of product lifecycle management and product data management systems, for approximately $126.7 million in cash and $13.1 million in Autodesk common stock to be issued at future dates on the first and second anniversaries of the closing date. Autodesk expects to integrate Upchain’s unified cloud platform in Autodesk solutions. Autodesk is in the process of accounting for this transaction and expects to disclose the preliminary allocation of the purchase consideration to the assets acquired and liabilities assumed, including the amount of goodwill, in Autodesk’s second fiscal quarter ended July 31, 2021. Additionally, Autodesk has not yet determined the amount of the purchase price attributed to purchase consideration. |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Policies) | 3 Months Ended |
Apr. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements of Autodesk, Inc. (“Autodesk,” “we,” “us,” “our,” or the “Company”) as of April 30, 2021, and for the three months ended April 30, 2021 and 2020, have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information along with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In management’s opinion, Autodesk made all adjustments (consisting of normal, recurring and non-recurring adjustments) during the quarter that were considered necessary for the fair statement of the financial position and operating results of the Company. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. In March 2020, the World Health Organization declared the outbreak of a disease caused by a novel strain of the coronavirus (COVID-19) to be a pandemic. This pandemic has created and may continue to create significant uncertainty in the macroeconomic environment which, in addition to other unforeseen effects of this pandemic, may adversely impact our results of operations. As the COVID-19 pandemic continues to develop, many of our estimates could require increased judgment and carry a higher degree of variability and volatility. As events continue to evolve our estimates may change materially in future periods. In addition, the results of operations for the three months ended April 30, 2021, are not necessarily indicative of the results for the entire fiscal year ending January 31, 2022, or for any other period. Further, the balance sheet as of January 31, 2021, has been derived from the audited Consolidated Balance Sheet as of this date. There have been no material changes, other than what is discussed herein, to Autodesk's significant accounting policies as compared to the significant accounting policies disclosed in the Annual Report on Form 10-K for the fiscal year ended January 31, 2021. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes, together with management’s discussion and analysis of financial position and results of operations, contained in Autodesk’s Annual Report on Form 10-K for the fiscal year ended January 31, 2021, filed on March 19, 2021. Change in presentation and immaterial correction of an error During the quarter ended April 30, 2021, the Company changed its presentation on the Condensed Consolidated Balance Sheets for investments in debt and equity securities that are held in a rabbi trust under non-qualified deferred compensation plans, including correcting the classification as current and non-current assets. These amounts were previously presented as current "Marketable securities" and are now presented as “Prepaid expenses and other current assets” and “Long-term other assets” on the Condensed Consolidated Balance Sheets. Accordingly, prior period amounts have been reclassified to conform to the current period presentation. These presentation and classification changes did not impact “Total assets” on the Condensed Consolidated Balance Sheets and had no impact on the Company's Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statement of Cash Flows. The effects of the changes on the Consolidated Balance Sheets as of January 31, 2021, were as follows: As Reported January 31, 2021 Effect of Changes in Presentation As Adjusted January 31, 2021 Marketable securities $ 85.0 $ (81.0) $ 4.0 Prepaid and other current assets 198.9 7.3 206.2 Long-term other assets 412.9 73.7 486.6 Total current assets 2,699.2 (73.7) 2,625.5 Total assets 7,279.8 $ — 7,279.8 |
Recently Issued Accounting Standards | With the exception of those discussed below, there have been no recent changes in accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) or adopted by the Company during the three months ended April 30, 2021, that are applicable to the Company. Recently issued accounting standards not yet adopted In March 2020, FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU No. 2020-04”), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments are effective for all entities as of March 12, 2020, through December 31, 2022. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Autodesk will apply the expedients in ASU No. 2020-04 through December 31, 2022. Autodesk does not believe ASU No. 2020-04 will have a material impact on its consolidated financial statements. |
Revenue Recognition | Revenue DisaggregationAutodesk recognizes revenue from the sale of (1) product subscriptions, cloud service offerings, and enterprise business agreements (“EBAs”), (2) renewal fees for existing maintenance plan agreements that were initially purchased with a perpetual software license, and (3) consulting, training, and other goods and services. The three categories are presented as line items on Autodesk's Condensed Consolidated Statements of Operations. |
Fair Value Measurement | Autodesk applies fair value accounting for certain financial assets and liabilities, which consist of cash equivalents, marketable securities, and other financial instruments, on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The effects of the changes on the Consolidated Balance Sheets as of January 31, 2021, were as follows: As Reported January 31, 2021 Effect of Changes in Presentation As Adjusted January 31, 2021 Marketable securities $ 85.0 $ (81.0) $ 4.0 Prepaid and other current assets 198.9 7.3 206.2 Long-term other assets 412.9 73.7 486.6 Total current assets 2,699.2 (73.7) 2,625.5 Total assets 7,279.8 $ — 7,279.8 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Net Revenue From Contracts With Customers by Product Family, Geographic Location, Sales Channel, and Product Type | Information regarding the components of Autodesk's net revenue from contracts with customers by product family, geographic location, sales channel, and product type is as follows: Three Months Ended April 30, 2021 2020 Net revenue by product family: Architecture, Engineering and Construction $ 442.6 $ 382.7 AutoCAD and AutoCAD LT 285.1 262.2 Manufacturing 197.3 182.9 Media and Entertainment 55.0 52.6 Other 9.3 5.3 Total net revenue $ 989.3 $ 885.7 Net revenue by geographic area: Americas U.S. $ 324.0 $ 300.6 Other Americas 67.7 61.6 Total Americas 391.7 362.2 Europe, Middle East and Africa 382.5 344.8 Asia Pacific 215.1 178.7 Total net revenue $ 989.3 $ 885.7 Net revenue by sales channel: Indirect $ 661.3 $ 623.4 Direct 328.0 262.3 Total net revenue $ 989.3 $ 885.7 Net revenue by product type: Design $ 885.1 $ 797.7 Make 81.5 67.4 Other 22.7 20.6 Total net revenue $ 989.3 $ 885.7 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Investments, All Other Investments [Abstract] | |
Summary of Financial Instruments' Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Value by Significant Investment Category | The following tables summarize the Company's financial instruments' amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category as of April 30, 2021, and January 31, 2021: April 30, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level 1 Level 2 Level 3 Cash equivalents (1): Money market funds $ 174.5 $ — $ — $ 174.5 $ 174.5 $ — $ — Other (2) 1.5 — — 1.5 1.0 0.5 — Mutual funds (3) (4) 70.0 21.2 — 91.2 91.2 — — Strategic investments derivative assets (4) 0.1 0.4 (0.3) 0.2 — — 0.2 Derivative contract assets (4) 0.4 9.4 (0.2) 9.6 — 9.6 — Derivative contract liabilities (5) — — (10.7) (10.7) — (10.7) — Total $ 246.5 $ 31.0 $ (11.2) $ 266.3 $ 266.7 $ (0.6) $ 0.2 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of custody cash deposits and certificates of deposit. (3) See Note 12, “Deferred Compensation “for more information. (4) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. (5) Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets. January 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level 1 Level 2 Level 3 Cash equivalents (1): Commercial paper $ 36.0 $ — $ — $ 36.0 $ — $ 36.0 $ — Money market funds 686.9 — — 686.9 686.9 — — Other (2) 4.4 — — 4.4 4.0 0.4 — Marketable securities: Other (3) 4.0 — — 4.0 — 4.0 — Mutual funds (4) (5) 64.5 16.5 — 81.0 81.0 — — Strategic investments derivative asset (5) 0.1 0.4 (0.3) 0.2 — — 0.2 Derivative contract assets (5) 0.4 9.8 (0.4) 9.8 — 9.8 — Derivative contract liabilities (6) — — (17.5) (17.5) — (17.5) — Total $ 796.3 $ 26.7 $ (18.2) $ 804.8 $ 771.9 $ 32.7 $ 0.2 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of custody cash deposits and certificates of deposit. (3) Consists of commercial paper and municipal bonds. (4) See Note 12, “Deferred Compensation “ for more information. (5) Included in “Prepaid expenses and other current assets,” or “Long-term other assets,” in the accompanying Condensed Consolidated Balance Sheets. (6) Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets. |
Schedule of Equity Securities Without Readily Determinable Fair Value | Adjustments to the carrying value of our strategic investment equity securities with no readily determined fair values measured using the measurement alternative were as follows: Three Months Ended April 30, Cumulative Amount as of 2021 2020 April 30, 2021 Upward adjustments (1) $ 0.7 $ 3.0 $ 16.7 Negative adjustments, including impairments (1) (3.7) (19.1) (64.3) Net adjustments $ (3.0) $ (16.1) $ (47.6) ____________________ (1) Included in “Interest and other expense, net” on the Company's Condensed Consolidated Statements of Operations. |
Summary of Location and Amount of Gain or (Loss) Recognized | The location and amount of gain or loss recognized in income on cash flow hedges together with the total amount of income or expense presented in the Company's Condensed Consolidated Statements of Operations where the effects of the hedge are recorded were as follows for the three months ended April 30, 2021 and 2020: Three Months Ended April 30, 2021 Net revenue Cost of revenue Operating expenses Subscription revenue Maintenance revenue Cost of subscription and maintenance revenue Marketing and sales Research and development General and administrative Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded $ 947.5 $ 19.1 $ 68.5 $ 377.1 $ 265.5 $ 111.9 Gain on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of (loss) gain reclassified from accumulated other comprehensive income into income $ (4.9) $ (0.6) $ 0.3 $ 0.8 $ — $ 0.5 Three Months Ended April 30, 2020 Net Revenue Cost of revenue Operating expenses Subscription Revenue Maintenance Revenue Cost of subscription and maintenance revenue Marketing and sales Research and development General and administrative Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded $ 803.0 $ 62.1 $ 57.4 $ 341.3 $ 217.4 $ 104.8 Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 2.1 $ 0.6 $ (0.2) $ (0.8) $ (0.1) $ (0.4) |
Schedule of Fair Values of Derivative Instruments | The fair values of derivative instruments in Autodesk’s Condensed Consolidated Balance Sheets were as follows as of April 30, 2021, and January 31, 2021: Balance Sheet Location Fair Value at April 30, 2021 January 31, 2021 Derivative Assets Foreign currency contracts designated as cash flow hedges Prepaid expenses and other current assets $ 6.1 $ 4.7 Derivatives not designated as hedging instruments Prepaid expenses and other current assets and long-term other assets 3.7 5.3 Total derivative assets $ 9.8 $ 10.0 Derivative Liabilities Foreign currency contracts designated as cash flow hedges Other accrued liabilities $ 6.3 $ 16.5 Derivatives not designated as hedging instruments Other accrued liabilities 4.4 1.0 Total derivative liabilities $ 10.7 $ 17.5 |
Schedule of Derivatives Designated as Hedging Instruments | The effects of derivatives designated as hedging instruments on Autodesk’s Condensed Consolidated Statements of Operations were as follows for the three months ended April 30, 2021 and 2020 (amounts presented include any income tax effects): Foreign Currency Contracts Three Months Ended April 30, 2021 2020 Amount of gain recognized in accumulated other comprehensive loss on derivatives (effective portion) $ 6.1 $ 5.1 Amount and location of (loss) gain reclassified from accumulated other comprehensive loss into income (effective portion) Net revenue $ (5.5) $ 2.7 Cost of revenue 0.3 (0.2) Operating expenses 1.3 (1.3) Total $ (3.9) $ 1.2 The effects of derivatives not designated as hedging instruments on Autodesk’s Condensed Consolidated Statements of Operations were as follows for the three months ended April 30, 2021 and 2020 (amounts presented include any income tax effects): Three Months Ended April 30, 2021 2020 Amount and location of gain (loss) recognized on derivatives in net income Interest and other expense, net $ 6.9 $ (1.0) |
Equity Compensation (Tables)
Equity Compensation (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Summary of Restricted Stock Activity | A summary of restricted stock activity for the three months ended April 30, 2021, is as follows: Unvested Weighted (in thousands) Unvested restricted stock units at January 31, 2021 4,503.9 $ 191.91 Granted 1,582.8 292.20 Vested (558.4) 161.69 Canceled/Forfeited (112.6) 198.93 Performance Adjustment (1) (7.9) 137.02 Unvested restricted stock units at April 30, 2021 5,407.8 $ 226.12 _______________ |
Schedule of Summary of the ESPP Activity | A summary of the ESPP activity for the three months ended April 30, 2021 and 2020, is as follows: Three Months Ended April 30, 2021 2020 Issued shares (in millions) 0.5 0.5 Average price of issued shares $ 128.02 $ 122.54 Weighted average grant date fair value of shares granted under the ESPP (1) $ 91.17 $ 45.70 _______________ |
Schedule of Stock-based Compensation Expense | The following table summarizes stock-based compensation expense for the three months ended April 30, 2021 and 2020, respectively, as follows: Three Months Ended April 30, 2021 2020 Cost of subscription and maintenance revenue $ 5.3 $ 3.7 Cost of other revenue 1.8 1.5 Marketing and sales 48.3 40.7 Research and development 46.7 32.9 General and administrative 13.7 19.4 Stock-based compensation expense related to stock awards and ESPP purchases 115.8 98.2 Tax benefit (16.0) (0.1) Stock-based compensation expense related to stock awards and ESPP purchases, net of tax $ 99.8 $ 98.1 |
Schedule of Assumptions to Estimate the Fair Value of Stock-based Awards | Autodesk uses the following assumptions to estimate the fair value of stock-based awards: Three Months Ended April 30, 2021 Three Months Ended April 30, 2020 Performance Stock Units ESPP Performance Stock Units ESPP Range of expected volatility 36.9% 36.5 - 41.8% 50.7% 39.4 - 45.8% Range of expected lives (in years) N/A 0.5- 2.0 N/A 0.5 - 2.0 Expected dividends —% —% —% —% Range of risk-free interest rates 0.1% 0.1- 0.2% 0.3% 0.3 - 0.5% |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of the Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the assets acquired and liabilities assumed by major class for the business combination that was completed during the three months ended April 30, 2021: Aggregate Total Developed technologies $ 93.0 Customer relationships 221.0 Trade name 4.0 Backlog 0.5 Goodwill 767.2 Deferred revenue and long-term deferred revenue (12.3) Long-term deferred income taxes (42.4) Net tangible assets 7.3 Total $ 1,038.3 |
Other Intangible Assets, Net (T
Other Intangible Assets, Net (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-lived Intangible Assets | Other intangible assets, including developed technologies, customer relationships, trade names, patents, user lists, and the related accumulated amortization, were as follows: April 30, 2021 January 31, 2021 Developed technologies, at cost $ 794.1 $ 698.4 Customer relationships, trade names, patents, and user lists, at cost (1) 775.5 548.8 Other intangible assets, at cost (2) 1,569.6 1,247.2 Less: Accumulated amortization (1,066.5) (1,047.9) Other intangible assets, net $ 503.1 $ 199.3 _______________ (1) Included in “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. (2) Includes the effects of foreign currency translation. |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the changes in the carrying amount of goodwill for the three months ended April 30, 2021, (in millions): Balance as of January 31, 2021 $ 2,855.7 Less: accumulated impairment losses as of January 31, 2021 (149.2) Net balance as of January 31, 2021 2,706.5 Additions arising from acquisitions during the period 767.2 Effect of foreign currency translation 10.3 Balance as of April 30, 2021 $ 3,484.0 |
Computer Equipment, Software,_2
Computer Equipment, Software, Leasehold Improvements, and Furniture, Net (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Computer Equipment, Software, Furniture, Leasehold Improvements and the Related Accumulated Depreciation | Computer equipment, software, leasehold improvements, and furniture and equipment and the related accumulated depreciation were as follows: April 30, 2021 January 31, 2021 Computer hardware, at cost $ 155.4 $ 153.3 Computer software, at cost 58.9 57.9 Leasehold improvements, land and buildings, at cost 344.7 335.9 Furniture and equipment, at cost 92.1 88.4 651.1 635.5 Less: Accumulated depreciation (453.8) (442.7) Computer hardware, software, leasehold improvements, and furniture and equipment, net $ 197.3 $ 192.8 |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Fair Value of Market Price | Based on the quoted market prices, the approximate fair value of the notes as of April 30, 2021, were as follows: Aggregate Principal Amount Fair value 2012 Notes $ 350.0 $ 364.6 2015 Notes 300.0 335.7 2017 Notes 500.0 551.3 2020 Notes 500.0 522.3 |
Summary of Future Minimum Payments for Borrowings | The expected future principal payments for all borrowings as of April 30, 2021, is as follows (in millions): Fiscal year ending 2022 (remainder) $ — 2023 350.0 2024 — 2025 — 2026 300.0 Thereafter 1,000.0 Total principal outstanding $ 1,650.0 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost and Cash Flow Information | The components of lease cost were as follows: Three Months Ended April 30, 2021 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 1.9 $ 0.5 $ 10.8 $ 8.0 $ 3.7 $ 24.9 Variable lease cost 0.4 0.1 2.3 1.7 0.8 5.3 Three Months Ended April 30, 2020 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 2.0 $ 0.7 $ 11.5 $ 7.9 $ 3.4 $ 25.5 Variable lease cost 0.3 0.1 1.5 1.1 0.4 3.4 Supplemental operating cash flow information related to leases is as follows: Three Months Ended April 30, 2021 2020 Cash paid for operating leases included in operating cash flows (1) $ 29.9 $ 24.9 Non-cash operating lease liabilities arising from obtaining operating lease right-of-use assets 4.5 8.5 _______________ (1) Includes $5.3 million and $3.4 million in variable lease payments for the three months ended April 30, 2021 and 2020, respectively, not included in “Operating lease liabilities” and “Long-term operating lease liabilities” on the Condensed Consolidated Balance Sheets. |
Schedule of Future Minimum Lease Payments | Maturities of operating lease liabilities were as follows: Fiscal year ending 2022 (remainder) $ 61.1 2023 98.2 2024 80.3 2025 59.6 2026 45.3 Thereafter 148.8 493.3 Less imputed interest 40.0 Present value of operating lease liabilities $ 453.3 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
Schedule of Changes in Stockholders' Deficit by Component, Net of Tax | Changes in stockholders' equity by component, net of tax, for the three months ended April 30, 2021, are as follows: (in millions, except per share data) Common stock and additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' equity Shares Amount Balances, January 31, 2021 219.6 $ 2,578.9 $ (125.9) $ (1,487.5) $ 965.5 Common shares issued under stock plans 0.9 9.0 9.0 Stock-based compensation expense 114.1 114.1 Post-combination expense related to equity awards assumed 0.1 0.1 Shares issued related to business combination 2.6 2.6 Net income 155.6 155.6 Other comprehensive income 24.2 24.2 Repurchase and retirement of common shares (0.5) (65.3) (77.4) (142.7) Balances, April 30, 2021 220.0 $ 2,639.4 $ (101.7) $ (1,409.3) $ 1,128.4 ________________ (1) During the three months ended April 30, 2021, Autodesk repurchased 0.5 million shares at an average repurchase price of $276.96 per share. At April 30, 2021, 11.6 million shares remained available for repurchase under the repurchase program approved by the Board of Directors. Changes in stockholders' deficit by component, net of tax, for the three months ended April 30, 2020, are as follows: Common stock and additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' deficit Shares Amount Balances, January 31, 2020 219.4 $ 2,317.0 $ (160.3) $ (2,295.8) $ (139.1) Common shares issued under stock plans 1.0 24.3 — — 24.3 Stock-based compensation expense — 88.2 — — 88.2 Settlement of liability-classified restricted stock units — 28.7 — — 28.7 Post-combination expense related to equity awards assumed — 0.1 — — 0.1 Net income — — — 66.5 66.5 Other comprehensive loss — — (18.8) — (18.8) Repurchase and retirement of common shares (1.2) (57.0) — (132.0) (189.0) Balances, April 30, 2020 219.2 $ 2,401.3 $ (179.1) $ (2,361.3) $ (139.1) ________________ |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss, Net of Taxes | Accumulated other comprehensive loss, net of taxes, consisted of the following at April 30, 2021: Net Unrealized Gains (Losses) on Derivative Instruments Net Unrealized Gains on Available-for-Sale Debt Securities Defined Benefit Pension Components Foreign Currency Translation Adjustments Total Balances, January 31, 2021 $ (24.1) $ 6.4 $ (21.3) $ (86.9) $ (125.9) Other comprehensive income before reclassifications 7.8 4.0 — 11.9 23.7 Pre-tax losses reclassified from accumulated other comprehensive loss 3.9 — 0.1 — 4.0 Tax effects (1.7) — — (1.8) (3.5) Net current period other comprehensive income 10.0 4.0 0.1 10.1 24.2 Balances, April 30, 2021 $ (14.1) $ 10.4 $ (21.2) $ (76.8) $ (101.7) Accumulated other comprehensive loss, net of taxes, consisted of the following at April 30, 2020: Net Unrealized Gains (Losses) on Derivative Instruments Net Unrealized Gains on Available-for-Sale Debt Securities Defined Benefit Pension Components Foreign Currency Translation Adjustments Total Balances, January 31, 2020 $ 8.4 $ 4.7 $ (22.8) $ (150.6) $ (160.3) Other comprehensive income (loss) before reclassifications 5.6 0.2 — (22.9) (17.1) Pre-tax (gains) losses reclassified from accumulated other comprehensive loss (1.2) 0.1 (0.3) — (1.4) Tax effects (0.4) 0.1 — — (0.3) Net current period other comprehensive income (loss) 4.0 0.4 (0.3) (22.9) (18.8) Balances, April 30, 2020 $ 12.4 $ 5.1 $ (23.1) $ (173.5) $ (179.1) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of the Numerators and Denominators Used in the Basic and Diluted Net Loss Per Share Amounts | The following table sets forth the computation of the numerators and denominators used in the basic and diluted net income per share amounts: Three Months Ended April 30, 2021 2020 Numerator: Net income $ 155.6 $ 66.5 Denominator: Denominator for basic net income per share—weighted average shares 219.6 219.2 Effect of dilutive securities 2.4 2.1 Denominator for dilutive net income per share 222.0 221.3 Basic net income per share $ 0.71 $ 0.30 Diluted net income per share $ 0.70 $ 0.30 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Long-lived Assets by Geographic Areas | Information regarding Autodesk’s long-lived assets by geographic area is as follows: April 30, 2021 January 31, 2021 Long-lived assets (1): Americas U.S. $ 414.2 $ 423.6 Other Americas 30.6 29.5 Total Americas 444.8 453.1 Europe, Middle East, and Africa 108.4 109.7 Asia Pacific 45.6 46.7 Total long-lived assets $ 598.8 $ 609.5 ____________________ |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 31, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Marketable securities | $ 0 | $ 4 |
Prepaid and other current assets | 256.1 | 206.2 |
Long-term other assets | 486.6 | |
Total current assets | $ 1,505.4 | 2,625.5 |
Total assets | 7,279.8 | |
Previously Reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Marketable securities | 85 | |
Prepaid and other current assets | 198.9 | |
Long-term other assets | 412.9 | |
Total current assets | 2,699.2 | |
Total assets | 7,279.8 | |
Effect of Changes in Presentation | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Marketable securities | (81) | |
Prepaid and other current assets | 7.3 | |
Long-term other assets | 73.7 | |
Total current assets | (73.7) | |
Total assets | $ 0 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) $ in Millions | 3 Months Ended | |
Apr. 30, 2021USD ($)category | Apr. 30, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Number of revenue categories | category | 3 | |
Contract with customer, liability, revenue recognized | $ 838.2 | $ 787.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-05-01 | Period One | ||
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligation | $ 4,230 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligation, expected timing of satisfaction (in years) | 3 years | |
Remaining performance obligation | $ 4,230 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-05-01 | Period Two | ||
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligation | $ 2,860 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligation, expected timing of satisfaction (in years) | 12 months | |
Remaining performance obligation percentage | 68.00% | |
Remaining performance obligation | $ 2,860 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-05-01 | ||
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligation | $ 1,370 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligation, expected timing of satisfaction (in years) | ||
Remaining performance obligation percentage | 32.00% | |
Remaining performance obligation | $ 1,370 |
Revenue Recognition - Contract
Revenue Recognition - Contract Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 989.3 | $ 885.7 |
Design | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 885.1 | 797.7 |
Make | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 81.5 | 67.4 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 22.7 | 20.6 |
Indirect | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 661.3 | 623.4 |
Direct | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 328 | 262.3 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 391.7 | 362.2 |
U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 324 | 300.6 |
Other Americas | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 67.7 | 61.6 |
Europe, Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 382.5 | 344.8 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 215.1 | 178.7 |
Architecture, Engineering and Construction | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 442.6 | 382.7 |
AutoCAD and AutoCAD LT | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 285.1 | 262.2 |
Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 197.3 | 182.9 |
Media and Entertainment | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 55 | 52.6 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 9.3 | $ 5.3 |
Revenue Recognition - Payment T
Revenue Recognition - Payment Terms (Details) | 3 Months Ended |
Apr. 30, 2021 | |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Subscription payment terms (in days) | 30 days |
EBA payment terms (in days) | 30 days |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Subscription payment terms (in days) | 45 days |
EBA payment terms (in days) | 60 days |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2021 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | ||||
Unsecured revolving credit facility | $ 650,000,000 | |||
Trade Accounts Receivable | ||||
Concentration Risk [Line Items] | ||||
Concentration risk (in percentage) | 10.00% | 10.00% | ||
Tech Data | Net Revenue | ||||
Concentration Risk [Line Items] | ||||
Concentration risk (in percentage) | 36.00% | 38.00% | ||
Tech Data | Accounts Receivable | ||||
Concentration Risk [Line Items] | ||||
Concentration risk (in percentage) | 36.00% | 26.00% | ||
Ingram Micro | Net Revenue | ||||
Concentration Risk [Line Items] | ||||
Concentration risk (in percentage) | 10.00% | 10.00% |
Financial Instruments - Cost an
Financial Instruments - Cost and Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 31, 2021 |
Cash equivalents | ||
Amortized Cost | $ 923.2 | $ 1,772.2 |
Short-term trading securities | ||
Derivative contract assets, Amortized Cost | 0.1 | 0.1 |
Derivative contract assets, Gross unrealized gains | 0.4 | 0.4 |
Derivative contract assets, Gross unrealized losses | (0.3) | (0.3) |
Derivative contract assets | 0.2 | 0.2 |
Amortized Cost | 246.5 | 796.3 |
Gross unrealized gains | 31 | 26.7 |
Gross unrealized losses | (11.2) | (18.2) |
Fair Value | 266.3 | 804.8 |
Foreign exchange contracts | ||
Short-term trading securities | ||
Derivative contract assets, Amortized Cost | 0.4 | 0.4 |
Derivative contract assets, Gross unrealized gains | 9.4 | 9.8 |
Derivative contract assets, Gross unrealized losses | (0.2) | (0.4) |
Derivative contract assets | 9.6 | 9.8 |
Derivative contract liabilities, Amortized Cost | 0 | 0 |
Derivative contract liabilities, Gross unrealized gains | 0 | 0 |
Derivative contract liabilities, Gross unrealized losses | (10.7) | (17.5) |
Derivative contract liabilities | (10.7) | (17.5) |
Level 1 | ||
Short-term trading securities | ||
Derivative contract assets | 0 | 0 |
Fair Value | 266.7 | 771.9 |
Level 1 | Foreign exchange contracts | ||
Short-term trading securities | ||
Derivative contract assets | 0 | 0 |
Derivative contract liabilities | 0 | 0 |
Level 2 | ||
Short-term trading securities | ||
Derivative contract assets | 0 | 0 |
Fair Value | (0.6) | 32.7 |
Level 2 | Foreign exchange contracts | ||
Short-term trading securities | ||
Derivative contract assets | 9.6 | 9.8 |
Derivative contract liabilities | (10.7) | (17.5) |
Level 3 | ||
Short-term trading securities | ||
Derivative contract assets | 0.2 | 0.2 |
Fair Value | 0.2 | 0.2 |
Level 3 | Foreign exchange contracts | ||
Short-term trading securities | ||
Derivative contract assets | 0 | 0 |
Derivative contract liabilities | 0 | 0 |
Commercial paper | ||
Cash equivalents | ||
Amortized Cost | 36 | |
Fair Value | 36 | |
Commercial paper | Level 1 | ||
Cash equivalents | ||
Fair Value | 0 | |
Commercial paper | Level 2 | ||
Cash equivalents | ||
Fair Value | 36 | |
Commercial paper | Level 3 | ||
Cash equivalents | ||
Fair Value | 0 | |
Money market funds | ||
Cash equivalents | ||
Amortized Cost | 174.5 | 686.9 |
Fair Value | 174.5 | 686.9 |
Money market funds | Level 1 | ||
Cash equivalents | ||
Fair Value | 174.5 | 686.9 |
Money market funds | Level 2 | ||
Cash equivalents | ||
Fair Value | 0 | 0 |
Money market funds | Level 3 | ||
Cash equivalents | ||
Fair Value | 0 | 0 |
Other | ||
Cash equivalents | ||
Amortized Cost | 1.5 | 4.4 |
Fair Value | 1.5 | 4.4 |
Other | Level 1 | ||
Cash equivalents | ||
Fair Value | 1 | 4 |
Other | Level 2 | ||
Cash equivalents | ||
Fair Value | 0.5 | 0.4 |
Other | Level 3 | ||
Cash equivalents | ||
Fair Value | 0 | 0 |
Commercial Paper and Municipal Bonds | ||
Marketable securities: | ||
Amortized Cost | 4 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 4 | |
Commercial Paper and Municipal Bonds | Level 1 | ||
Marketable securities: | ||
Fair Value | 0 | |
Commercial Paper and Municipal Bonds | Level 2 | ||
Marketable securities: | ||
Fair Value | 4 | |
Commercial Paper and Municipal Bonds | Level 3 | ||
Marketable securities: | ||
Fair Value | 0 | |
Mutual funds | ||
Short-term trading securities | ||
Amortized Cost | 70 | 64.5 |
Gross Unrealized Gains | 21.2 | 16.5 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 91.2 | 81 |
Mutual funds | Level 1 | ||
Short-term trading securities | ||
Fair Value | 91.2 | 81 |
Mutual funds | Level 2 | ||
Short-term trading securities | ||
Fair Value | 0 | 0 |
Mutual funds | Level 3 | ||
Short-term trading securities | ||
Fair Value | $ 0 | $ 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2021 | |
Investments, All Other Investments [Abstract] | |||
Securities in a continuous unrealized loss position for more than 12 months | $ 0 | $ 0 | |
Allowance for credit loss | 0 | $ 0 | |
Securities, writeoff | 0 | 0 | |
Gain (loss) from sale or redemption of available for sale securities | 0 | 0 | |
Sales and maturities of marketable securities | 4,000,000 | $ 0 | |
Direct investments in privately held companies | 129,800,000 | $ 134,100,000 | |
Equity method investment, realized gain (loss) on disposal | $ 8,100,000 |
Financial Instruments - Non-Mar
Financial Instruments - Non-Marketable Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Equity Securities without Readily Determinable Fair Value, Annual Amount [Abstract] | ||
Upward adjustments | $ 0.7 | $ 3 |
Negative adjustments, including impairments | (3.7) | (19.1) |
Net adjustments | (3) | $ (16.1) |
Equity Securities without Readily Determinable Fair Value, Impairment Loss, Cumulative Amount [Abstract] | ||
Upward adjustments | 16.7 | |
Negative adjustments, including impairments | (64.3) | |
Net adjustments | $ (47.6) |
Financial Instruments - Derivat
Financial Instruments - Derivative Narrative (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net gain (loss) expected to be recognized in next 24 months | $ 14.1 | |
Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, notional amount | 1,180 | $ 1,140 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, notional amount | $ 112.8 | $ 434.5 |
Financial Instruments - Effects
Financial Instruments - Effects of Derivative Instruments on Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net revenue | $ 989.3 | $ 885.7 |
Marketing and sales | 377.1 | 341.3 |
Research and development | 265.5 | 217.4 |
General and administrative | 111.9 | 104.8 |
Foreign exchange contracts | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | (3.9) | 1.2 |
Foreign exchange contracts | Designated as Hedging Instrument | Subscription revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | (4.9) | 2.1 |
Foreign exchange contracts | Designated as Hedging Instrument | Maintenance revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | (0.6) | 0.6 |
Foreign exchange contracts | Designated as Hedging Instrument | Cost of subscription and maintenance revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | 0.3 | (0.2) |
Foreign exchange contracts | Designated as Hedging Instrument | Marketing and sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | 0.8 | (0.8) |
Foreign exchange contracts | Designated as Hedging Instrument | Research and development | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | 0 | (0.1) |
Foreign exchange contracts | Designated as Hedging Instrument | General and administrative | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | 0.5 | (0.4) |
Subscription | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net revenue | 947.5 | 803 |
Maintenance | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net revenue | 19.1 | 62.1 |
Subscription and Maintenance | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total net revenue | 966.6 | 865.1 |
Cost of revenue | $ 68.5 | $ 57.4 |
Financial Instruments Fair Valu
Financial Instruments Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2021 | |
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | $ 9.8 | $ 10 | |
Derivative Liabilities | 10.7 | 17.5 | |
Foreign exchange contracts | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Amount of gain recognized in accumulated other comprehensive loss on derivatives (effective portion) | 6.1 | $ 5.1 | |
Amount of gain (loss) reclassified from accumulated other comprehensive loss into income (loss) (effective portion) | (3.9) | 1.2 | |
Foreign exchange contracts | Designated as Hedging Instrument | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | 6.1 | 4.7 | |
Foreign exchange contracts | Designated as Hedging Instrument | Other accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | 6.3 | 16.5 | |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Prepaid expenses and other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | 3.7 | 5.3 | |
Foreign exchange contracts | Derivatives not designated as hedging instruments | Other accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liabilities | 4.4 | $ 1 | |
Net revenue | Foreign exchange contracts | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Amount of gain (loss) reclassified from accumulated other comprehensive loss into income (loss) (effective portion) | (5.5) | 2.7 | |
Cost of revenue | Foreign exchange contracts | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Amount of gain (loss) reclassified from accumulated other comprehensive loss into income (loss) (effective portion) | 0.3 | (0.2) | |
Operating expenses | Foreign exchange contracts | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Amount of gain (loss) reclassified from accumulated other comprehensive loss into income (loss) (effective portion) | 1.3 | (1.3) | |
Interest and other expense, net | Foreign exchange contracts | Derivatives not designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Amount and location of gain (loss) recognized on derivatives in net income | $ 6.9 | $ (1) |
Equity Compensation - Summary o
Equity Compensation - Summary of Restricted Stock Award and Restricted Stock Unit Activity (Details) | 3 Months Ended |
Apr. 30, 2021$ / sharesshares | |
Restricted Stock Units (RSUs) and Performance Shares | |
Unvested restricted stock units | |
Unvested restricted stock units, beginning balance (in shares) | 4,503,900 |
Granted (in shares) | 1,582,800 |
Vested (in shares) | (558,400) |
Canceled/Forfeited (in shares) | (112,600) |
Unvested restricted stock units, ending balance (in shares) | 5,407,800 |
Weighted average grant date fair value per share | |
Unvested restricted stock units, beginning balance (in usd per share) | $ / shares | $ 191.91 |
Granted (in usd per share) | $ / shares | 292.20 |
Vested (in usd per share) | $ / shares | 161.69 |
Canceled/Forfeited (in usd per share) | $ / shares | 198.93 |
Unvested restricted stock units, ending balance (in usd per share) | $ / shares | $ 226.12 |
Performance Stock Units | |
Unvested restricted stock units | |
Granted (in shares) | 200,000 |
Performance adjustment (in shares) | (7,900) |
Weighted average grant date fair value per share | |
Performance adjustment (in usd per share) | $ / shares | $ 137.02 |
Minimum | Performance Stock Units | |
Weighted average grant date fair value per share | |
Performance shares units payout (in percentage) | 103.00% |
Maximum | Performance Stock Units | |
Weighted average grant date fair value per share | |
Performance shares units payout (in percentage) | 108.00% |
Equity Compensation - Additiona
Equity Compensation - Additional Information (Details) | Mar. 31, 2021shares | Apr. 30, 2021USD ($)periodshares | Apr. 30, 2020USD ($) | Jan. 31, 2021USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | $ 115,800,000 | $ 98,200,000 | ||
Settlement of liability-classified restricted stock units | 0 | $ 28,700,000 | ||
Market capitalization | $ 2,000,000,000 | |||
Award vesting period | 1 year | |||
Expected dividend yield (in percentage) | 0.00% | |||
1998 Employee Qualified Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of compensation that eligible employees can use to purchase common stock, maximum | 15.00% | |||
Percentage of fair market value eligible employees can purchase common stock, minimum | 85.00% | |||
Number of exercise period | period | 4 | |||
Term of exercise period | 6 months | |||
Term of offering period | 24 months | |||
Expected dividend yield (in percentage) | 0.00% | 0.00% | ||
Storm UK Holdco Limited | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Business acquisition, equity interest issued or issuable, number of shares | shares | 9,277 | |||
Common stock and additional paid-in capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Settlement of liability-classified restricted stock units | $ 0 | $ 28,700,000 | ||
Restricted Stock Units (RSUs) and Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vested in period, fair value | $ 148,800,000 | 111,400,000 | ||
Awards granted in period (in shares) | shares | 1,582,800 | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted in period (in shares) | shares | 1,300,000 | |||
Allocated share-based compensation expense | $ 89,600,000 | 76,900,000 | ||
Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted in period (in shares) | shares | 200,000 | |||
Allocated share-based compensation expense | $ 11,800,000 | $ 7,400,000 | ||
Award vesting period | 3 years | |||
Expected dividend yield (in percentage) | 0.00% | 0.00% | ||
Performance Stock Units | Share-based Compensation Award, Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
PSU annual vesting percentage | 33.33% | |||
Performance Stock Units | Share-based Compensation Award, Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
PSU annual vesting percentage | 33.33% | |||
Performance Stock Units | Share-based Compensation Award, Tranche Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
PSU annual vesting percentage | 33.33% | |||
Performance Stock Units | Certain employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted in period (in shares) | shares | 96,564 | |||
Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | $ 2,600,000 | $ 0 | ||
Common Stock | Spacemaker | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Value of shares authorized | $ 4,900,000 | |||
Shares of common stock reserved for issuance (in shares) | shares | 16,786 | |||
Restricted Stock | Spacemaker | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Shares issued in period (in shares) | shares | 73,632 |
Equity Compensation - Summary_2
Equity Compensation - Summary of ESPP Activity (Details) - Employee Stock - 1998 Employee Qualified Stock Purchase Plan - $ / shares shares in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issued shares (in shares) | 0.5 | 0.5 |
Average price of issued shares (in usd per share) | $ 128.02 | $ 122.54 |
Weighted average grant date fair value of shares granted under the ESPP (in usd per share) | $ 91.17 | $ 45.70 |
Equity Compensation - Stock Bas
Equity Compensation - Stock Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense related to stock awards and ESPP purchases | $ 115.8 | $ 98.2 |
Tax benefit | (16) | (0.1) |
Stock-based compensation expense related to stock awards and ESPP purchases, net of tax | 99.8 | 98.1 |
Cost of subscription and maintenance revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense related to stock awards and ESPP purchases | 5.3 | 3.7 |
Cost of other revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense related to stock awards and ESPP purchases | 1.8 | 1.5 |
Marketing and sales | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense related to stock awards and ESPP purchases | 48.3 | 40.7 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense related to stock awards and ESPP purchases | 46.7 | 32.9 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense related to stock awards and ESPP purchases | $ 13.7 | $ 19.4 |
Equity Compensation - Assumptio
Equity Compensation - Assumption Used to Estimate the Fair Value of Stock-Based Awards (Details) | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividends (in percentage) | 0.00% | |
Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of expected volatilities (in percentage) | 36.90% | 50.70% |
Expected dividends (in percentage) | 0.00% | 0.00% |
Range of risk-free interest rates (in percentage) | 0.10% | 0.30% |
1998 Employee Qualified Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividends (in percentage) | 0.00% | 0.00% |
1998 Employee Qualified Stock Purchase Plan | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of expected volatilities (in percentage) | 36.50% | 39.40% |
Range of expected lives (in years) | 6 months | 6 months |
Range of risk-free interest rates (in percentage) | 0.10% | 0.30% |
1998 Employee Qualified Stock Purchase Plan | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of expected volatilities (in percentage) | 41.80% | 45.80% |
Range of expected lives (in years) | 2 years | 2 years |
Range of risk-free interest rates (in percentage) | 0.20% | 0.50% |
Income Tax - Additional Informa
Income Tax - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Tax Credit Carryforward [Line Items] | ||
Benefit (provision) for income taxes | $ 24.2 | $ (24) |
(Loss) income before income taxes | 131.4 | $ 90.5 |
Unrecognized tax benefits | 200.5 | |
Unrecognized tax benefits that would impact effective tax rate | 168.4 | |
Effect of change in unrecognized tax benefits | 8.2 | |
SEC Schedule, 12-09, Valuation Allowance, Tax Credit Carryforward | ||
Tax Credit Carryforward [Line Items] | ||
Unrecognized tax benefits that would impact effective tax rate | $ 32.1 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Apr. 30, 2021 | Apr. 30, 2020 |
Business Acquisition [Line Items] | |||
Fair value of common stock issued related to business combination | $ 2.6 | $ 0 | |
Storm UK Holdco Limited | |||
Business Acquisition [Line Items] | |||
Consideration transferred | $ 1,040.9 | ||
Payments to acquire businesses | $ 1,038.3 | ||
Business acquisition, equity interest issued or issuable, number of shares | 9,277 | ||
Fair value of common stock issued related to business combination | $ 2.6 | ||
Business combination, consideration transferred, other | 1,038.3 | ||
Business combination, contingent consideration, asset | $ 2.6 | ||
Percentage of restricted common stock released | 50000000.00% | ||
Goodwill | $ 376.2 |
Acquisitions - Summary of Fair
Acquisitions - Summary of Fair Value of Assets Acquired and Liabilities Assumed by Major Class (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 31, 2021 |
Business Acquisition [Line Items] | ||
Goodwill | $ 3,484 | $ 2,706.5 |
Storm UK Holdco Limited | ||
Business Acquisition [Line Items] | ||
Goodwill | 767.2 | |
Deferred revenue and long-term deferred revenue | (12.3) | |
Long-term deferred income taxes | (42.4) | |
Net tangible assets | 7.3 | |
Total | 1,038.3 | |
Developed technologies | Storm UK Holdco Limited | ||
Business Acquisition [Line Items] | ||
Finite-lived intangibles | 93 | |
Customer relationships | Storm UK Holdco Limited | ||
Business Acquisition [Line Items] | ||
Finite-lived intangibles | 221 | |
Trade name | Storm UK Holdco Limited | ||
Business Acquisition [Line Items] | ||
Finite-lived intangibles | 4 | |
Backlog | Storm UK Holdco Limited | ||
Business Acquisition [Line Items] | ||
Finite-lived intangibles | $ 0.5 |
Other Intangible Assets, Net (D
Other Intangible Assets, Net (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, at cost | $ 1,569.6 | $ 1,247.2 |
Less: Accumulated amortization | (1,066.5) | (1,047.9) |
Other intangible assets, net | 503.1 | 199.3 |
Developed Technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, at cost | 794.1 | 698.4 |
Customer Relationships, Trade Names, Patents, and User Lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, at cost | $ 775.5 | $ 548.8 |
Cloud Computing Arrangements (D
Cloud Computing Arrangements (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2021 | |
Capitalized Contract Cost [Line Items] | |||
Capitalized contract cost | $ 118.1 | $ 120.9 | |
Amortization expense | 25.8 | $ 22.8 | |
Cloud-based Software Hosting Arrangements | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized contract cost | 87.7 | 72.2 | |
Accumulated amortization | 6.3 | $ 4.9 | |
Amortization expense | $ 1.4 | $ 0.9 |
Goodwill - Changes in the Carry
Goodwill - Changes in the Carrying Amount of Goodwill (Details) | 3 Months Ended | |
Apr. 30, 2021USD ($)segmentreporting_unit | Apr. 30, 2020USD ($) | |
Goodwill [Roll Forward] | ||
Goodwill gross, beginning of the period | $ 2,855,700,000 | |
Less: accumulated impairment losses, beginning of the period | (149,200,000) | |
Goodwill net, beginning of the period | 2,706,500,000 | |
Additions arising from acquisitions during the period | 767,200,000 | |
Effect of foreign currency translation | 10,300,000 | |
Goodwill net, end of the period | $ 3,484,000,000 | |
Number of operating segments | segment | 1 | |
Number of reporting units | reporting_unit | 1 | |
Goodwill impairment loss | $ 0 | $ 0 |
Deferred Compensation - Additio
Deferred Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Jan. 31, 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Costs to obtain a contract | $ 118,100,000 | $ 120,900,000 | |
Amortization of costs to obtain a contract | 25,800,000 | $ 22,800,000 | |
Impairment loss | 0 | $ 0 | |
Prepaid expenses and other current assets | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred compensation plan assets | 7,600,000 | 7,300,000 | |
Long-term other assets | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred compensation plan assets | 83,600,000 | 73,700,000 | |
Rabbi Trust | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred compensation plan assets | 91,200,000 | 81,000,000 | |
Deferred compensation liability | 91,200,000 | 81,000,000 | |
Deferred compensation liability, current | 7,600,000 | 7,300,000 | |
Deferred compensation liability, non-current | $ 83,600,000 | $ 73,700,000 |
Computer Equipment, Software,_3
Computer Equipment, Software, Leasehold Improvements, and Furniture, Net (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Computer software, hardware, leasehold improvements, furniture and equipment, gross | $ 651.1 | $ 635.5 |
Less: Accumulated depreciation | (453.8) | (442.7) |
Computer hardware, software, leasehold improvements, and furniture and equipment, net | 197.3 | 192.8 |
Computer hardware, at cost | ||
Property, Plant and Equipment [Line Items] | ||
Computer software, hardware, leasehold improvements, furniture and equipment, gross | 155.4 | 153.3 |
Computer software, at cost | ||
Property, Plant and Equipment [Line Items] | ||
Computer software, hardware, leasehold improvements, furniture and equipment, gross | 58.9 | 57.9 |
Leasehold improvements, land and buildings, at cost | ||
Property, Plant and Equipment [Line Items] | ||
Computer software, hardware, leasehold improvements, furniture and equipment, gross | 344.7 | 335.9 |
Furniture and equipment, at cost | ||
Property, Plant and Equipment [Line Items] | ||
Computer software, hardware, leasehold improvements, furniture and equipment, gross | $ 92.1 | $ 88.4 |
Borrowing Arrangements - Additi
Borrowing Arrangements - Additional Information (Details) | 1 Months Ended | 3 Months Ended | ||||
Jan. 31, 2020USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2012USD ($) | Apr. 30, 2021USD ($) | |
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 650,000,000 | |||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt redemption percentage of principle amount (as a percent) | 101.00% | |||||
Senior Notes | 2020 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 500,000,000 | $ 500,000,000 | ||||
Stated interest rate | 2.85% | |||||
Unamortized discount | $ 1,100,000 | |||||
Debt issuance costs | 4,800,000 | |||||
Proceeds from debt, net of issuance costs | 494,100,000 | |||||
Senior Notes | 2015 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 450,000,000 | |||||
Senior Notes | 2017 Notes due in 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 500,000,000 | |||||
Stated interest rate | 3.50% | |||||
Unamortized discount | $ 3,100,000 | |||||
Debt issuance costs | 4,900,000 | |||||
Proceeds from debt, net of issuance costs | 492,000,000 | |||||
Senior Notes | 2017 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | 500,000,000 | |||||
Repayments of debt | $ 400,000,000 | |||||
Senior Notes | 2015 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 300,000,000 | 300,000,000 | ||||
Stated interest rate | 4.375% | |||||
Unamortized discount | $ 1,100,000 | |||||
Debt issuance costs | 2,500,000 | |||||
Proceeds from debt, net of issuance costs | $ 296,400,000 | |||||
Senior Notes | 2012 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 350,000,000 | $ 350,000,000 | ||||
Stated interest rate | 3.60% | |||||
Unamortized discount | $ 500,000 | |||||
Debt issuance costs | 2,800,000 | |||||
Proceeds from debt, net of issuance costs | $ 346,700,000 | |||||
Revolving Credit Facility | December 17, 2018 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, increase limit | $ 350,000,000 | |||||
Fiscal Quarter Ending April 30, 2019 | Revolving Credit Facility | December 17, 2018 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt covenant, interest coverage ratio, minimum | 3 | |||||
Fiscal Quarter Ending January 31, 2020 | Revolving Credit Facility | December 17, 2018 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt covenant, leverage ratio, maximum | 3 | |||||
Minimum | Base Rate | Revolving Credit Facility | December 17, 2018 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.00% | |||||
Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | December 17, 2018 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.90% | |||||
Maximum | Base Rate | Revolving Credit Facility | December 17, 2018 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | December 17, 2018 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.50% |
Borrowing Arrangements - Fair V
Borrowing Arrangements - Fair Value Notes (Details) - Senior Notes - USD ($) | Apr. 30, 2021 | Jan. 31, 2020 | Jun. 30, 2015 | Dec. 31, 2012 |
2012 Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate Principal Amount | $ 350,000,000 | $ 350,000,000 | ||
Fair value | 364,600,000 | |||
2015 Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate Principal Amount | 300,000,000 | $ 300,000,000 | ||
Fair value | 335,700,000 | |||
2017 Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate Principal Amount | 500,000,000 | |||
Fair value | 551,300,000 | |||
2020 Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate Principal Amount | 500,000,000 | $ 500,000,000 | ||
Fair value | $ 522,300,000 |
Borrowing Arrangements - Future
Borrowing Arrangements - Future Minimum Payments For Borrowings (Details) $ in Millions | Apr. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 (remainder) | $ 0 |
2023 | 350 |
2024 | 0 |
2025 | 0 |
2026 | 300 |
Thereafter | 1,000 |
Total principal outstanding | $ 1,650 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | Jan. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Weighted average remaining lease term (in years) | 7 years 1 month 6 days | 7 years 3 months 18 days |
Weighted average discount rate (in percentage) | 2.66% | 2.69% |
Operating lease minimum payments, executed leases that have not commenced | $ 0 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term (in years) | 1 year | |
Lease renewal term (in years) | 1 year | |
Optional termination period (in years) | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term (in years) | 69 years | |
Lease renewal term (in years) | 10 years | |
Optional termination period (in years) | 9 years |
Leases - Lease Costs and Cash F
Leases - Lease Costs and Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease cost | $ 24.9 | $ 25.5 |
Variable lease cost | 5.3 | 3.4 |
Cash paid for operating leases included in operating cash flows | 29.9 | 24.9 |
Non-cash operating lease liabilities arising from obtaining operating lease right-of-use assets | 4.5 | 8.5 |
Variable lease payments | 5.3 | 3.4 |
Cost of subscription and maintenance revenue | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease cost | 1.9 | 2 |
Variable lease cost | 0.4 | 0.3 |
Cost of other revenue | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease cost | 0.5 | 0.7 |
Variable lease cost | 0.1 | 0.1 |
Marketing and sales | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease cost | 10.8 | 11.5 |
Variable lease cost | 2.3 | 1.5 |
Research and development | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease cost | 8 | 7.9 |
Variable lease cost | 1.7 | 1.1 |
General and administrative | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease cost | 3.7 | 3.4 |
Variable lease cost | $ 0.8 | $ 0.4 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | Apr. 30, 2021USD ($) |
Leases [Abstract] | |
2022 (remainder) | $ 61.1 |
2023 | 98.2 |
2024 | 80.3 |
2025 | 59.6 |
2026 | 45.3 |
Thereafter | 148.8 |
Total lease payments | 493.3 |
Less imputed interest | 40 |
Present value of operating lease liabilities | $ 453.3 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 965,500,000 | $ (139,100,000) |
Common shares issued under stock plans | 9,000,000 | 24,300,000 |
Stock-based compensation expense | 114,100,000 | 88,200,000 |
Settlement of liability-classified restricted stock units | 0 | 28,700,000 |
Post combination expense related to assumed equity | 100,000 | 100,000 |
Shares issued related to business combination | 2,600,000 | |
Net income | 155,600,000 | 66,500,000 |
Other comprehensive income | 24,200,000 | (18,800,000) |
Repurchase and retirement of common shares | (142,700,000) | (189,000,000) |
Ending balance | $ 1,128,400,000 | $ (139,100,000) |
Common stock and additional paid-in capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 219.6 | 219.4 |
Beginning balance | $ 2,578,900,000 | $ 2,317,000,000 |
Common shares issued under stock plans (in shares) | 0.9 | 1 |
Common shares issued under stock plans | $ 9,000,000 | $ 24,300,000 |
Stock-based compensation expense | 114,100,000 | 88,200,000 |
Settlement of liability-classified restricted stock units | 0 | 28,700,000 |
Post combination expense related to assumed equity | 100,000 | $ 100,000 |
Shares issued related to business combination | $ 2,600,000 | |
Repurchase and retirement of common shares (in shares) | (0.5) | (1.2) |
Repurchase and retirement of common shares | $ (65,300,000) | $ (57,000,000) |
Ending balance (in shares) | 220 | 219.2 |
Ending balance | $ 2,639,400,000 | $ 2,401,300,000 |
Accumulated other comprehensive loss | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (125,900,000) | (160,300,000) |
Other comprehensive income | 24,200,000 | (18,800,000) |
Ending balance | (101,700,000) | (179,100,000) |
Accumulated deficit | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (1,487,500,000) | (2,295,800,000) |
Net income | 155,600,000 | 66,500,000 |
Repurchase and retirement of common shares | (77,400,000) | (132,000,000) |
Ending balance | $ (1,409,300,000) | $ (2,361,300,000) |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - Common Stock Repurchase Program - $ / shares shares in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Class of Stock [Line Items] | ||
Common stock repurchased and retired (in shares) | 0.5 | 1.2 |
Repurchased shares of its common stock on the open market, average repurchase price per share (in usd per share) | $ 276.96 | $ 153.41 |
Common stock shares remained available for repurchase under repurchase plans (in shares) | 11.6 | 13.5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 965.5 | $ (139.1) |
Other comprehensive income before reclassifications | 23.7 | (17.1) |
Pre-tax losses reclassified from accumulated other comprehensive loss | 4 | (1.4) |
Tax effects | (3.5) | (0.3) |
Total other comprehensive income (loss) | 24.2 | (18.8) |
Ending balance | 1,128.4 | (139.1) |
Accumulated other comprehensive loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (125.9) | (160.3) |
Ending balance | (101.7) | (179.1) |
Net Unrealized Gains (Losses) on Derivative Instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (24.1) | 8.4 |
Other comprehensive income before reclassifications | 7.8 | 5.6 |
Pre-tax losses reclassified from accumulated other comprehensive loss | 3.9 | (1.2) |
Tax effects | (1.7) | (0.4) |
Total other comprehensive income (loss) | 10 | 4 |
Ending balance | (14.1) | 12.4 |
Net Unrealized Gains on Available-for-Sale Debt Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 6.4 | 4.7 |
Other comprehensive income before reclassifications | 4 | 0.2 |
Pre-tax losses reclassified from accumulated other comprehensive loss | 0 | 0.1 |
Tax effects | 0 | 0.1 |
Total other comprehensive income (loss) | 4 | 0.4 |
Ending balance | 10.4 | 5.1 |
Defined Benefit Pension Components | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (21.3) | (22.8) |
Other comprehensive income before reclassifications | 0 | 0 |
Pre-tax losses reclassified from accumulated other comprehensive loss | 0.1 | (0.3) |
Tax effects | 0 | 0 |
Total other comprehensive income (loss) | 0.1 | (0.3) |
Ending balance | (21.2) | (23.1) |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (86.9) | (150.6) |
Other comprehensive income before reclassifications | 11.9 | (22.9) |
Pre-tax losses reclassified from accumulated other comprehensive loss | 0 | 0 |
Tax effects | (1.8) | 0 |
Total other comprehensive income (loss) | 10.1 | (22.9) |
Ending balance | $ (76.8) | $ (173.5) |
Net Income Per Share - Computat
Net Income Per Share - Computation of Net Income Per Share Amounts (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Numerator: | ||
Net income | $ 155.6 | $ 66.5 |
Denominator: | ||
Denominator for basic net income per share—weighted average shares (in shares) | 219.6 | 219.2 |
Effect of dilutive securities (in shares) | 2.4 | 2.1 |
Denominator for dilutive net income per share (in shares) | 222 | 221.3 |
Basic net income per share (in usd per share) | $ 0.71 | $ 0.30 |
Diluted net income per share (in usd per share) | $ 0.70 | $ 0.30 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Treasury Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive shares excluded from the computation of diluted net income per share (in shares) | 0.4 | 0 |
Segments (Details)
Segments (Details) $ in Millions | 3 Months Ended | |
Apr. 30, 2021USD ($)segment | Jan. 31, 2021USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segments | segment | 1 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 598.8 | $ 609.5 |
Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 444.8 | 453.1 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 414.2 | 423.6 |
Other Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 30.6 | 29.5 |
Europe, Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 108.4 | 109.7 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 45.6 | $ 46.7 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | May 11, 2021 | Apr. 30, 2021 | Apr. 30, 2020 |
Subsequent Event [Line Items] | |||
Fair value of common stock issued related to business combination | $ 2.6 | $ 0 | |
Subsequent Event | Upchain | |||
Subsequent Event [Line Items] | |||
Business acquired outstanding percentage | 100.00% | ||
Payments to acquire businesses | $ 126.7 | ||
Fair value of common stock issued related to business combination | $ 13.1 |