Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 31, 2023 | Mar. 07, 2023 | Jul. 29, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2023 | ||
Current Fiscal Year End Date | --01-31 | ||
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 | One Market Street, Ste. 400 | ||
Entity Address, City or Town | San Francisco, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94105 | ||
City Area Code | 415 | ||
Local Phone Number | 507-5000 | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Trading Symbol | ADSK | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 47 | ||
Entity Common Stock, Shares Outstanding | 214,782,702 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for registrant’s Annual Meeting of Stockholders (the “Proxy Statement”), are incorporated by reference in Part III of this Form 10-K to the extent stated herein. The Proxy Statement will be filed within 120 days of the registrant’s fiscal year ended January 31, 2023 | ||
Entity Central Index Key | 0000769397 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Jan. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Firm ID | 42 |
Auditor Location | San Francisco, California |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Net revenue: | |||
Total net revenue | $ 5,005 | $ 4,386 | $ 3,790 |
Cost of revenue: | |||
Amortization of developed technologies | 58 | 52 | 31 |
Total cost of revenue | 480 | 418 | 337 |
Gross profit | 4,525 | 3,968 | 3,453 |
Operating expenses: | |||
Marketing and sales | 1,745 | 1,623 | 1,440 |
Research and development | 1,219 | 1,115 | 932 |
General and administrative | 532 | 572 | 414 |
Amortization of purchased intangibles | 40 | 40 | 38 |
Total operating expenses | 3,536 | 3,350 | 2,824 |
Income from operations | 989 | 618 | 629 |
Interest and other expense, net | (43) | (53) | (82) |
Income before income taxes | 946 | 565 | 547 |
(Provision for) benefit from income taxes | (123) | (68) | 661 |
Net income | $ 823 | $ 497 | $ 1,208 |
Basic net income per share (in dollars per share) | $ 3.81 | $ 2.26 | $ 5.52 |
Diluted net income per share (in dollars per share) | $ 3.78 | $ 2.24 | $ 5.44 |
Weighted average shares used in computing basic net income per share (in shares) | 216 | 220 | 219 |
Weighted average shares used in computing diluted net income per share (in shares) | 218 | 222 | 222 |
Subscription and Maintenance | |||
Net revenue: | |||
Total net revenue | $ 4,716 | $ 4,136 | $ 3,564 |
Cost of revenue: | |||
Cost of goods and services sold | 343 | 299 | 242 |
Subscription | |||
Net revenue: | |||
Total net revenue | 4,651 | 4,060 | 3,381 |
Maintenance | |||
Net revenue: | |||
Total net revenue | 65 | 76 | 183 |
Other | |||
Net revenue: | |||
Total net revenue | 289 | 250 | 226 |
Cost of revenue: | |||
Cost of goods and services sold | $ 79 | $ 67 | $ 64 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 823 | $ 497 | $ 1,208 |
Other comprehensive (loss) income, net of reclassifications: | |||
Net gain (loss) on derivative instruments (net of tax effect of $(7), $(8), and $5) | 40 | 48 | (33) |
Change in net unrealized gain on available-for-sale securities (net of tax effect of zero for all periods presented) | 0 | 12 | 2 |
Change in defined benefit pension items (net of tax effect of $1, $(1), and zero) | (3) | 5 | 1 |
Net change in cumulative foreign currency translation (loss) gain (net of tax effect of zero, zero, and $(1)) | (98) | (63) | 64 |
Total other comprehensive (loss) income | (61) | 2 | 34 |
Total comprehensive income | $ 762 | $ 499 | $ 1,242 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net gain (loss) on derivative instruments, tax effect | $ (7,000,000) | $ (8,000,000) | $ 5,000,000 |
Change in net unrealized gain on available-for-sale securities, tax (benefit) | 0 | 0 | 0 |
Change in defined pension items, tax | 1,000,000 | (1,000,000) | 0 |
Net change in cumulative foreign currency translation (loss) gain, tax expense (benefit) | $ 0 | $ 0 | $ (1,000,000) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,947 | $ 1,528 |
Marketable securities | 125 | 236 |
Accounts receivable, net | 961 | 716 |
Prepaid expenses and other current assets | 308 | 284 |
Total current assets | 3,341 | 2,764 |
Long-term marketable securities | 102 | 45 |
Computer equipment, software, furniture, and leasehold improvements, net | 144 | 162 |
Operating lease right-of-use assets | 245 | 305 |
Intangible assets, net | 407 | 494 |
Goodwill | 3,625 | 3,604 |
Deferred income taxes, net | 1,014 | 741 |
Long-term other assets | 560 | 492 |
Total assets | 9,438 | 8,607 |
Current liabilities: | ||
Accounts payable | 102 | 121 |
Accrued compensation | 358 | 341 |
Accrued income taxes | 33 | 30 |
Deferred revenue | 3,203 | 2,863 |
Operating lease liabilities | 85 | 87 |
Current portion of long-term notes payable, net | 0 | 350 |
Other accrued liabilities | 219 | 217 |
Total current liabilities | 4,000 | 4,009 |
Long-term deferred revenue | 1,377 | 927 |
Long-term operating lease liabilities | 300 | 346 |
Long-term income taxes payable | 164 | 20 |
Long-term deferred income taxes | 32 | 29 |
Long-term notes payable, net | 2,281 | 2,278 |
Long-term other liabilities | 139 | 149 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; shares authorized 2; none issued or outstanding at January 31, 2023 and 2022 | 0 | 0 |
Common stock and additional paid-in capital, $0.01 par value; shares authorized 750; 215 and 218 issued and outstanding at January 31, 2023 and 2022, respectively | 3,325 | 2,923 |
Accumulated other comprehensive loss | (185) | (124) |
Accumulated deficit | (1,995) | (1,950) |
Total stockholders’ equity | 1,145 | 849 |
Total liabilities and stockholders' equity | $ 9,438 | $ 8,607 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jan. 31, 2023 | Jan. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares outstanding (in shares) | 215,000,000 | 218,000,000 |
Common stock (in shares) | 215,000,000 | 218,000,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Operating activities: | |||
Net income | $ 823 | $ 497 | $ 1,208 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization, and accretion | 150 | 148 | 124 |
Stock-based compensation expense | 657 | 555 | 398 |
Deferred income taxes | (277) | (8) | (779) |
Lease-related asset impairments | 34 | 104 | 0 |
Other operating activities | (8) | 18 | 39 |
Changes in operating assets and liabilities, net of business combinations: | |||
Accounts receivable | (247) | (66) | 13 |
Prepaid expenses and other assets | (3) | (134) | (56) |
Accounts payable and other liabilities | (5) | 10 | 130 |
Deferred revenue | 798 | 419 | 344 |
Accrued income taxes | 149 | (12) | 16 |
Net cash provided by operating activities | 2,071 | 1,531 | 1,437 |
Investing activities: | |||
Purchases of marketable securities | (397) | (311) | (21) |
Sales of marketable securities | 152 | 12 | 0 |
Maturities of marketable securities | 298 | 26 | 17 |
Purchases of intangible assets | (6) | (11) | (5) |
Business combinations, net of cash acquired | (96) | (1,250) | (246) |
Capital expenditures | (40) | (56) | (91) |
Other investing activities | (54) | (5) | (58) |
Net cash used in investing activities | (143) | (1,595) | (404) |
Financing activities: | |||
Proceeds from issuance of common stock, net of issuance costs | 124 | 114 | 114 |
Taxes paid related to net share settlement of equity awards | (160) | (194) | (157) |
Repurchase and retirement of common stock | (1,101) | (1,079) | (552) |
Proceeds from debt, net of discount | 0 | 997 | 0 |
Repayments of debt | (350) | 0 | (450) |
Other financing activities | 0 | (7) | (2) |
Net cash used in financing activities | (1,487) | (169) | (1,047) |
Effect of exchange rate changes on cash and cash equivalents | (22) | (11) | 11 |
Net increase (decrease) in cash and cash equivalents | 419 | (244) | (3) |
Cash and cash equivalents at beginning of fiscal year | 1,528 | 1,772 | 1,775 |
Cash and cash equivalents at end of fiscal year | 1,947 | 1,528 | 1,772 |
Supplemental cash flow disclosure: | |||
Cash paid for interest | 86 | 58 | 63 |
Cash paid for income taxes, net of tax refunds | 241 | 165 | 93 |
Non-cash investing and financing activities: | |||
Fair value of common stock issued to settle liability-classified restricted stock units | 11 | 3 | 29 |
Fair value of common stock issued related to business combination (See Note 6) | $ 10 | $ 6 | $ 38 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common stock and additional paid-in capital | Accumulated other comprehensive loss | Accumulated deficit |
Beginning Balance (in shares) at Jan. 31, 2020 | 219 | |||
Beginning balance at Jan. 31, 2020 | $ (139) | $ 2,317 | $ (160) | $ (2,296) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common shares issued under stock plans (in shares) | 3 | |||
Common shares issued under stock plans | (41) | $ (41) | ||
Stock-based compensation expense | 386 | 386 | ||
Settlement of liability-classified restricted common shares | 29 | 29 | ||
Net income | 1,208 | 1,208 | ||
Other comprehensive income (loss) | 34 | 34 | ||
Shares issued related to business combination | $ 38 | $ 38 | ||
Repurchase and retirement of common shares (in shares) | (2) | (2) | ||
Repurchase and retirement of common shares | $ (550) | $ (150) | (400) | |
Ending Balance (in shares) at Jan. 31, 2021 | 220 | |||
Ending balance at Jan. 31, 2021 | 965 | $ 2,579 | (126) | (1,488) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common shares issued under stock plans (in shares) | 2 | |||
Common shares issued under stock plans | (78) | $ (78) | ||
Stock-based compensation expense | 544 | 544 | ||
Settlement of liability-classified restricted common shares | 3 | 3 | ||
Net income | 497 | 497 | ||
Other comprehensive income (loss) | 2 | 2 | ||
Shares issued related to business combination | $ 6 | $ 6 | ||
Repurchase and retirement of common shares (in shares) | (4) | (4) | ||
Repurchase and retirement of common shares | $ (1,090) | $ (131) | (959) | |
Ending Balance (in shares) at Jan. 31, 2022 | 218 | 218 | ||
Ending balance at Jan. 31, 2022 | $ 849 | $ 2,923 | (124) | (1,950) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common shares issued under stock plans (in shares) | 2 | |||
Common shares issued under stock plans | (38) | $ (38) | ||
Stock-based compensation expense | 633 | 633 | ||
Settlement of liability-classified restricted common shares | 11 | 11 | ||
Net income | 823 | 823 | ||
Other comprehensive income (loss) | (61) | (61) | ||
Shares issued related to business combination | $ 10 | $ 10 | ||
Repurchase and retirement of common shares (in shares) | (5) | (5) | ||
Repurchase and retirement of common shares | $ (1,082) | $ (214) | (868) | |
Ending Balance (in shares) at Jan. 31, 2023 | 215 | 215 | ||
Ending balance at Jan. 31, 2023 | $ 1,145 | $ 3,325 | $ (185) | $ (1,995) |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2023 | |
Accounting Policies [Abstract] | |
Business and Summary Of Significant Accounting Policies | Business and Summary of Significant Accounting Policies Business Autodesk, Inc. (“Autodesk” or the “Company”) is a global leader in 3D design, engineering and entertainment technology solutions, spanning architecture, engineering, construction, product design, manufacturing, media, and entertainment. The Company’s sophisticated software products, offered through a hybrid of desktop and cloud functionality, enable its customers to design, fabricate, manufacture, and build anything by visualizing, simulating, and analyzing real-world performance early in the design process. These capabilities allow our customers to foster innovation, optimize their designs, streamline their manufacturing and construction processes, save time and money, improve quality, deliver more sustainable outcomes, communicate plans, and collaborate with others. Autodesk software products are sold globally through a combination of indirect and direct channels. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Autodesk and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in Autodesk’s consolidated financial statements and notes thereto. These estimates are based on information available as of the date of the consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Actual results may differ materially from these estimates. Examples of significant estimates and assumptions made by management involve revenue recognition for product subscriptions and enterprise business arrangements (“EBAs”), the determination of the fair value of acquired assets and liabilities, goodwill, financial instruments including strategic investments, long-lived assets, and intangible assets, the realizability of deferred tax assets, and the fair value of stock awards. The Company also makes assumptions, judgments, and estimates in determining the accruals for uncertain tax positions, variable compensation, partner incentive programs, product returns reserves, allowances for credit losses, asset retirement obligations, legal contingencies, and operating lease liabilities. Change in presentation In the current fiscal year, the Company changed its presentation of certain subscription plan offerings in our Consolidated Statements of Operations. Revenue from subscription plan offerings in which the customer does not utilize the cloud functionality or that do not incorporate substantial cloud functionality, previously recorded in “Subscription” have been reclassified to “Other” and “Maintenance,” as applicable. Accordingly, prior period amounts have been reclassified to conform to the current period presentation, in all material respects. These reclassifications did not impact total net revenue. The effect of the change on the Consolidated Statements of Operations for the fiscal years ended January 31, 2022 and 2021, were as follows: Fiscal Year Ended January 31, 2022 Fiscal Year Ended January 31, 2021 As Reported Effect of Change in Presentation As Adjusted As Reported Effect of Change in Presentation As Adjusted Net revenue: Subscription $ 4,156 $ (96) $ 4,060 $ 3,479 $ (98) $ 3,381 Other 154 96 250 128 98 226 Total net revenue 4,386 — 4,386 3,790 — 3,790 In the current fiscal year, the Company changed its rounding presentation to the nearest whole number in millions of reported amounts, except per share data or as otherwise noted. The current year rounding presentation has been applied to all prior year amounts presented and, in certain circumstances, this change may adjust previously reported balances. Segments Autodesk operates in one operating segment, and accordingly all required financial segment information is included in the 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 maker (“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 were as follows: January 31, 2023 2022 Long-lived assets (1): Americas U.S. $ 256 $ 323 Other Americas 13 20 Total Americas 269 343 Europe, Middle East, and Africa 72 92 Asia Pacific 48 32 Total long-lived assets $ 389 $ 467 ____________________ Revenue Recognition Autodesk’s revenue is divided into three categories: subscription revenue, maintenance revenue, and other revenue. Subscription revenue consists of our term-based product subscriptions, cloud service offerings, and flexible EBAs. Maintenance revenue consists of renewal fees for existing maintenance plan agreements that were initially purchased with a perpetual software license. Under our maintenance plan, customers are eligible to receive unspecified upgrades, when and if available, and technical support. Other revenue consists of revenue from consulting, training, and other products and services. Revenue is recognized when control for these offerings is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for products and services. Autodesk’s contracts with customers may include promises to transfer multiple products and services to a customer. Determining whether the products and services are considered distinct performance obligations that should be accounted for separately or as a single performance obligation may require significant judgment. Judgment is required to determine the level of integration and interdependency between individual components of desktop software applications and cloud functionalities. This determination influences whether the desktop software is considered distinct and accounted for separately as a license performance obligation recognized at the time of delivery, or not distinct and accounted for together with the cloud functionalities as a single subscription performance obligation recognized over time. For product subscriptions and flexible EBA subscriptions in which the desktop software and related cloud functionalities are highly interrelated, the single performance obligation is recognized ratably over the contract term as the subscription is delivered. For subscriptions involving distinct desktop software licenses, the license performance obligation is satisfied when delivered to our customers. For standalone maintenance subscriptions, cloud subscriptions, and technical support services, the performance obligation is satisfied ratably over the contract term as those services are delivered. For consulting services, the performance obligation is satisfied over a period of time as those services are delivered. When an arrangement includes multiple performance obligations which are concurrently delivered and have the same pattern of transfer to the customer (the services transfer to the customer over the contract period), we account for those performance obligations as a single performance obligation. For contracts with more than one performance obligation, the transaction price is allocated among the performance obligations in an amount that depicts the relative standalone selling price (“SSP”) of each obligation. Judgment is required to determine the SSP for each distinct performance obligation. We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount that should be allocated based on the relative SSP of the various products and services. Our indirect channel model includes both a two-tiered distribution structure, where Autodesk sells to distributors that subsequently sell to resellers, and a one-tiered structure where Autodesk sells directly to resellers. For these arrangements, transfer of control begins at the time access to our subscriptions is made available electronically to our customer, provided all other criteria for revenue recognition are met. Judgment is required to determine whether our distributors and resellers have the ability to honor their commitment to pay, regardless of whether they collect payment from their customers. If we were to change this assessment, it could cause a material increase or decrease in the amount of revenue that we report in a particular period. Costs to Obtain a Contract with a Customer Sales 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 commission costs are capitalized and included in “Prepaid expenses and other current assets” and “Long-term other assets” on our Consolidated Balance Sheets. The deferred costs are then amortized over the period of benefit. Autodesk determined that sales commissions earned by internal sales personnel that are related to contract renewals are commensurate with sales commissions earned on the initial contracts, and we determined the period of benefit to be the term of the respective customer contract. Commissions paid to our reseller partners that are related to contract renewals are not commensurate with commissions earned on the initial contract, and we determined the estimated period of benefit by taking into consideration customer retention data, customer contracts, our technology, and other factors. Deferred costs are periodically reviewed for impairment. Amortization expense is included in marketing and sales expenses in the Consolidated Statements of Operations. Fair Value Measurement Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In determining the fair value of our investments, we are sometimes required to use various alternative valuation techniques. Inputs to valuation techniques are either observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two types of inputs have created the following fair value hierarchy: Level 1 - Quoted prices for identical instruments in active markets; Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3 - Unobservable inputs for which there is little or no market data, which require Autodesk to develop its own assumptions. This hierarchy requires us to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. This is generally true for our cash and cash equivalents and the majority of our marketable securities, which we consider to be Level 1 and Level 2 assets. Key inputs for currency derivatives are spot rates, forward rates, interest rates, volatility, and credit default rates. The spot rate for each currency is the same spot rate used for all balance sheet translations at the measurement date. Autodesk reviews for any potential changes on a quarterly basis, in conjunction with our fiscal quarter-end close. It is Autodesk’s assessment that the leveling best reflects current market activity when observing the pricing information for these assets. Autodesk’s Level 2 securities and derivatives are valued primarily using observable inputs other than quoted prices in active markets for identical assets and liabilities. The Company has elected to use the income approach to value derivatives using the observable Level 2 market expectations at measurement date and standard valuation techniques to convert future amounts to a single present amount (discounted). Mid-market pricing is used as a practical expedient and when required, rates are interpolated from commonly quoted intervals published by market sources. See Note 3, “Financial Instruments” for information. Cash and Cash Equivalents Autodesk considers all highly liquid investments with insignificant interest rate risk and remaining maturities of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at estimated fair value. Marketable Securities and Strategic Investments Autodesk classifies its marketable securities as either short-term or long-term generally based on each instrument’s underlying contractual maturity date. Generally, marketable securities with remaining maturities of less than 12 months are classified as short-term and marketable securities with remaining maturities greater than 12 months are classified as long-term. Autodesk may sell certain of its marketable securities prior to their stated maturities for strategic purposes or in anticipation of credit deterioration. Marketable securities are stated at fair value. Marketable securities maturing within one year that are not restricted are classified as current assets. Autodesk determines the appropriate classification of its marketable securities at the time of purchase and re-evaluates such classification as of each balance sheet date. Autodesk carries all “available-for-sale securities” at fair value, with unrealized gains and losses, net of tax, reported in stockholders’ equity until disposition or maturity. Autodesk carries all “trading securities” at fair value, with unrealized gains and losses, recorded in “Interest and other expense, net” in the Company’s Consolidated Statements of Operations. The cost of securities sold is based on the specific-identification method. The company's strategic investments consist of privately held debt and equity securities. Under the measurement alternative method, strategic investments in equity securities are measured at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer in the current period. The carrying value is not adjusted for the Company’s strategic investments in equity securities if there are no observable price changes in a same or similar security from the same issuer or if there are no identified events or changes in circumstances that may indicate impairment, as discussed below. To determine if a transaction is deemed a similar investment, Autodesk considers the rights and obligations between the investments and the extent to which those differences would affect the fair values of those investments with additional consideration for the stage of development of the investee company. The fair value would then be adjusted positively or negatively based on available information such as pricing in recent rounds of financing. The company’s strategic investments in debt and equity securities (Level 3) are valued using significant unobservable inputs or data in an inactive market and the valuation requires the Company’s judgment due to the absence of market prices and inherent lack of liquidity. These assumptions are inherently subjective and involve significant management judgment. Whenever possible, we use observable market data and rely on unobservable inputs only when observable market data is not available, when determining fair value. In determining the estimated fair value of its strategic investments, the Company utilizes the most recent data available to the Company. In addition, the determination of whether an orderly transaction is for a same or similar investment requires significant management judgment including: the rights and obligations of the investments, the extent to which those differences would affect the fair values of those investments, and the impact of any differences based on the stage of operational development of the investee. All of Autodesk’s marketable securities and strategic investments are subject to a periodic impairment review. Strategic investments in equity securities are assessed based on available information such as current cash positions, earnings, earnings and cash flow forecasts, recent operational performance and any other readily available market data. For any available-for-sale debt securities, if Autodesk does not intend to sell and it is not more likely than not that Autodesk will be required to sell the available-for-sale debt security prior to recovery of its amortized cost basis, Autodesk will determine whether a decline in fair value below the amortized cost basis is due to credit-related factors. The credit loss is measured as the amount by which the debt security’s amortized cost basis exceeds the estimate of the present value of cash flows expected to be collected, up to the difference between the amortized cost basis and the fair value. Impairment will be assessed at the individual security level. Credit-related impairment is recognized as an allowance on the Consolidated Balance Sheets with a corresponding adjustment to “Interest and other expense, net” on the Company’s Consolidated Statements of Operations. Any impairment that is not credit-related is recognized in “Accumulated other comprehensive loss” on the Consolidated Balance Sheets. Autodesk does not measure an allowance for credit losses on accrued interest receivables on available-for-sale debt securities separately. Autodesk writes off accrued interest receivables by reversing interest income in the period deemed uncollectible in “Interest and other expense, net” on the Company’s Consolidated Statements of Operations. Any accrued interest receivable on available-for-sale debt securities is recorded in “Cash and cash equivalents,” “Prepaid expenses and other current assets,” or “Long-term other assets” in the accompanying Consolidated Balance Sheets, as applicable. For Autodesk’s quarterly impairment assessment of privately held debt and equity securities strategic investment portfolio, the analysis encompasses an assessment of the severity and duration of the impairment and qualitative and quantitative analysis of other key factors including: the investee’s financial metrics, the investee’s products and technologies meeting or exceeding predefined milestones, market acceptance of the product or technology, other competitive products or technology in the market, general market conditions, management and governance structure of the investee, the investee’s liquidity, debt ratios, and the rate at which the investee is using its cash. For additional information, see “Concentration of Credit Risk” within this Note 1, “Business and Summary of Significant Accounting Policies” and Note 3, “Financial Instruments.” Derivative Financial Instruments Under its risk management strategy, Autodesk uses derivative instruments to manage its short-term exposures to fluctuations in foreign currency exchange rates that exist as part of ongoing business operations. Autodesk’s general practice is to hedge a portion of transaction exposures primarily denominated in euros, Japanese yen, British pounds, Canadian dollars, Australian dollars, Singapore dollars, Swiss francs, Swedish krona, Czech koruna and Indian rupees. These instruments generally have maturities between one hedging instruments and foreign currency contracts designated as cash flow hedges but Autodesk does not enter into derivative instrument transactions for trading or speculative purposes. The bank counterparties to the derivative contracts potentially expose Autodesk to credit-related losses in the event of their nonperformance. However, to mitigate that risk, Autodesk only contracts with counterparties who meet the Company’s minimum requirements under its counterparty risk assessment process. Autodesk monitors counterparty risk on at least a quarterly basis and will adjust its exposure to various counterparties as necessary. Autodesk generally enters into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. Autodesk does not have any master netting arrangements in place with collateral features. Autodesk accounts for these derivative instruments as either assets or liabilities on the balance sheet and carries them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Derivatives that do not qualify for hedge accounting are adjusted to fair value through earnings. In addition to these foreign currency contracts, Autodesk holds derivative instruments issued by privately held companies, which are not designated as hedging instruments. These derivatives consist of certain conversion options on the convertible debt securities held by Autodesk or options to acquire equity securities in a privately held company. These derivatives are recorded at fair value as of each balance sheet date and are recorded in “Long-term other assets.” Changes in the fair values of these instruments are recognized in “Interest and other expense, net.” Foreign Currency Translation and Transactions The assets and liabilities of Autodesk’s foreign subsidiaries are translated from their respective functional currencies into U.S. dollars at the rates in effect at the balance sheet date, and revenue and expense amounts are translated at exchange rates that approximate those rates in effect during the period in which the underlying transactions occur. Foreign currency translation adjustments are recorded in other comprehensive income (loss). Gains and losses realized from foreign currency transactions, those transactions denominated in currencies other than the foreign subsidiary’s functional currency, are included in “Interest and other expense, net.” Monetary assets and liabilities are remeasured using foreign currency exchange rates at the end of the period, and non-monetary assets and liabilities are remeasured based on historical exchange rates. 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 effectiveness of the cash flow hedge contracts is assessed quantitatively using regression at inception and thereafter. To receive cash flow hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge relationship and the hedges are expected to be highly effective in offsetting changes to future cash flows on hedged transactions. The gains and losses on these hedges are included in “Accumulated other comprehensive loss” and are reclassified into earnings at the time the forecasted revenue or expense is recognized. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, Autodesk reclassifies and discloses the gain or loss on the related cash flow hedge from “Accumulated other comprehensive loss” to “Interest and other expense, net” in the Company’s Consolidated Financial Statements at that time. Derivative contracts and related gain (loss) are presented within “Net cash provided by operating activities” in the Company’s Consolidated Statements of Cash Flow. See Note 3, “Financial Instruments” for additional information. Derivatives Not Designated as Hedging Instruments Accounts Receivable, Net Accounts receivable, net, consisted of the following as of January 31: 2023 2022 Trade accounts receivable $ 1,046 $ 780 Less: Allowance for credit losses (5) (5) Product returns reserve (1) (1) Partner programs and other obligations (79) (58) Accounts receivable, net $ 961 $ 716 Allowances for uncollectible trade receivables and contract assets are subject to impairment using the expected credit loss model. Allowances for expected credit losses are measured based upon the lifetime expected credit loss which is based on historical experience, the number of days that billings are past due, reasonable economic forecast, including revised forecast data for the current economic environment, customer payment behavior, credit reports, and other customer-specific information. Allowances for credit losses on trade receivables and contract assets were not material as of January 31, 2023. As part of the indirect channel model, Autodesk has a partner incentive program that uses quarterly attainment of monetary rewards to motivate distributors and resellers to achieve mutually agreed upon business goals in a specified time period. The majority of these incentives are recorded as a reduction to deferred revenue in the period the transaction is billed and subsequently recognized as a reduction to subscription or maintenance revenue over the contract period. The remainder reduces subscription or maintenance revenue in the current period. These incentive balances do not require significant assumptions or judgments. Depending on how the payments are made, the reserves associated with the partner incentive program are recognized on the balance sheet as either a reduction to accounts receivable or recorded as accounts payable. 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 $1.5 billion revolving credit facility. The bank counterparties to the derivative contracts potentially expose Autodesk to credit-related losses in the event of their nonperformance. However, to mitigate that risk, Autodesk only contracts with counterparties who meet the Company's minimum requirements under its counterparty risk assessment process. Autodesk monitors counterparty risk on at least a quarterly basis and will adjust its exposure to various counterparties as necessary. Autodesk generally enters into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. However, Autodesk does not have any master netting arrangements in place with collateral features. Autodesk’s accounts receivable are derived from sales to a large number of resellers, distributors, and direct customers in the Americas, EMEA, and APAC geographies. Autodesk performs ongoing evaluations of these partners’ and customers’ financial condition and limits the amount of credit extended when deemed necessary, but generally does not require collateral from such parties. Total sales to the Company’s largest distributor Tech Data Corporation, and its global affiliates (“Tech Data”), accounted for 37%, 36%, and 37% of Autodesk's net revenue for fiscal years ended January 31, 2023, 2022 and 2021, 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 27% and 24% of trade accounts receivable as of January 31, 2023 and 2022, respectively. Ingram Micro Inc. (“Ingram Micro”), our second largest distributor, accounted for 9%, 9%, and 10% of Autodesk’s total net revenue for the fiscal years ended January 31, 2023, 2022 and 2021, respectively. No other customer accounted for more than 10% of Autodesk’s total net revenue or trade accounts receivable for each of the respective periods. Intangible Assets, Net Intangible assets include customer relationships, developed technologies, trade names and patents, and other, and the related accumulated amortization. These assets are presented as “Intangible assets, net” in the Consolidated Balance Sheets. The majority of Autodesk’s intangible assets are amortized to expense over the estimated economic life, which ranges from 3 to 15 years. Amortization expense for intangible assets was $98 million in fiscal 2023, $94 million in fiscal 2022, and $70 million in fiscal 2021. Intangible assets and related accumulated amortization at January 31, 2023 were as follows: Gross Carrying Amount (1) Accumulated Amortization Net Customer relationships $ 659 $ (402) $ 257 Developed technologies 858 (718) 140 Trade names and patents 116 (106) 10 Total intangible assets $ 1,633 $ (1,226) $ 407 _______________ (1) Includes the effects of foreign currency translation. Intangible assets and related accumulated amortization at January 31, 2022 were as follows: Gross Carrying Amount (1) Accumulated Amortization Net Customer relationships $ 667 $ (375) $ 292 Developed technologies 847 (661) 186 Trade names and patents 116 (100) 16 Total intangible assets $ 1,630 $ (1,136) $ 494 _______________ (1) Includes the effects of foreign currency translation. The weighted average amortization period for intangible assets during fiscal 2023 was 9.3 years. Expected future amortization expense for intangible assets for each of the fiscal years ended thereafter is as follows: Fiscal Year ended January 31, 2024 $ 80 2025 70 2026 63 2027 53 2028 20 Thereafter 121 Total $ 407 Computer Equipment, Software, Furniture, and Leasehold Improvements, Net Computer equipment, software, and furniture are depreciated using the straight-line method over the estimated useful lives of the assets, which range from three Computer equipment, software, furniture, leasehold improvements, and the related accumulated depreciation at January 31 were as follows: 2023 2022 Computer hardware, at cost $ 126 $ 137 Computer software, at cost 49 55 Leasehold improvements, land and buildings, at cost 363 351 Furniture and equipment, at cost 94 93 Computer software, hardware, leasehold improvements, furniture, and equipment, at cost 632 636 Less: Accumulated depreciation (488) (474) Computer software, hardware, leasehold improvements, furniture, and equipment, net $ 144 $ 162 Costs incurred for computer software developed or obtained for internal use are capitalized for application development activities, if material, and immediately expensed for preliminary project activities and post-implementation activities. These capitalized costs are amortized straight-line over the software’s expected useful life, which is generally three years. Software Development Costs Software development costs for external use incurred prior to the establishment of technological feasibility are included in research and development expenses. Autodesk defines establishment of technological feasibility as the completion of a working model. Software development costs incurred subsequent to the establishment of technological feasibility through the period of general market availability of the products are capitalized and generally amortized over a two-year period, if material. Autodesk had no material capitalized software development costs at January 31, 2023, and January 31, 2022. Cloud Computing Arrangements Autodesk enters into certain cloud-based software hosting arrangements that are accounted for as service contracts. Costs incurred for these arrangements are capitalized for application development activities, if material, and immediately expensed for preliminary project activities and post-implementation activities. Autodesk amortizes the capitalized development costs straight-line over the fixed, non-cancellable term of the associated hosting arrangement plus any reasonably certain renewal periods. The capitalized costs are included in “Prepaid expenses and other current assets” and “Long-term other assets” on our Consolidated Balance Sheets. Capitalized costs were $190 million and $128 million at January 31, 2023, and January 31, 2022, respectively. Accumulated amortization was $41 million and $17 million at January 31, 2023, and January 31, 2022, respectively. Amortization expense w |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jan. 31, 2023 | |
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 products and services. The three categories are presented as line items on Autodesk’s 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 was as follows: Fiscal Year ended January 31, 2023 2022 2021 Net revenue by product family: Architecture, Engineering and Construction (1) $ 2,278 $ 1,969 $ 1,649 AutoCAD and AutoCAD LT (1) 1,387 1,244 1,099 Manufacturing 978 876 799 Media and Entertainment 291 259 219 Other 71 38 24 Total net revenue $ 5,005 $ 4,386 $ 3,790 Net revenue by geographic area: Americas U.S. $ 1,720 $ 1,457 $ 1,282 Other Americas 372 308 260 Total Americas 2,092 1,765 1,542 Europe, Middle East and Africa 1,906 1,700 1,473 Asia Pacific 1,007 921 775 Total net revenue $ 5,005 $ 4,386 $ 3,790 Net revenue by sales channel: Indirect $ 3,250 $ 2,849 $ 2,600 Direct 1,755 1,537 1,190 Total net revenue $ 5,005 $ 4,386 $ 3,790 Net revenue by product type (2): Design $ 4,264 $ 3,772 $ 3,268 Make 452 364 296 Other 289 250 226 Total net revenue $ 5,005 $ 4,386 $ 3,790 ___________________ (1) During the year ended January 31, 2023, the Company corrected an immaterial classification error and reclassified certain revenue amounts between Architecture, Engineering and Construction and AutoCAD and AutoCAD LT. The year ended January 31, 2022 has been adjusted to conform to the current period presentation. These reclassifications did not impact total net revenue. (2) The prior period amount has been adjusted to conform to the current period presentation for a change in presentation of certain subscription plan offerings. See Note 1, “Business and Summary of Significant Accounting Policies” for further detail. 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 payable to customers for which significant estimation or judgment is required as of the reporting date. Remaining performance obligations consist of total short-term, long-term, and unbilled deferred revenue. As of January 31, 2023, Autodesk had remaining performance obligations of $5.62 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 $3.52 billion or 63% of our remaining performance obligations as revenue during the next 12 months. We expect to recognize the remaining $2.10 billion or 37% 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, the specific timing of customer renewals, the frequency of the billing installments, 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 January 31, 2023. 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 fiscal years ended January 31, 2023 and 2022, that was included in the deferred revenue balances at January 31, 2022 and 2021, was $2.85 billion and $2.50 billion, respectively. The satisfaction of performance obligations typically lags behind billings received under revenue contracts from customers. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Jan. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Financial Instruments The following tables summarize the Company’s financial instruments by significant investment category as of January 31, 2023 and 2022. January 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents (1): Money market funds $ 737 $ — $ — $ 737 Commercial paper 169 — — 169 Certificates of deposit 35 — — 35 U.S. government securities 13 — — 13 Other (2) 12 — — 12 Marketable securities: Short-term Corporate debt securities 44 — 44 Commercial paper 42 — — 42 Asset backed securities 19 — — 19 U.S. government securities 17 — — 17 Other (3) 3 — 3 Long-term Corporate debt securities 45 — — 45 U.S. government securities 35 — — 35 Asset backed securities 13 — — 13 Other (4) 9 — — 9 Mutual funds (5) (6) 81 6 (1) 86 Convertible debt securities (6) 3 1 (2) 2 Strategic investments derivative asset (6) 2 — (2) — Total $ 1,279 $ 7 $ (5) $ 1,281 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of custody cash deposits, agency discount notes, municipal bonds, corporate debt securities, asset-backed securities, and mortgage-backed securities. (3) Consists of mortgage-backed securities, agency mortgage-backed securities, common stock, and agency collateralized mortgage obligations. (4) Consists of agency mortgage-backed securities, agency bonds, agency collateralized mortgage obligations, mortgage-backed securities, and collateralized mortgage obligations. (5) See Note 7, "Deferred Compensation" for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Consolidated Balance Sheets. January 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents (1): Money market funds $ 302 $ — $ — $ 302 Commercial paper 55 — — 55 U.S. government securities 25 — — 25 Custody cash deposit 18 — — 18 Corporate debt securities 18 — — 18 Certificates of deposit 6 — — 6 Other (2) 4 — — 4 Marketable securities: Short-term Commercial paper 103 — — 103 Corporate debt securities 61 — 61 Asset backed securities 26 — — 26 Certificates of deposit 14 — — 14 U.S. government securities 13 — — 13 Municipal bonds 11 — — 11 Common Stock — 4 — 4 Other (3) 4 — 4 Long-term Corporate debt securities 44 — — 44 Other (4) 1 — — 1 Mutual Funds (5) (6) 74 16 (1) 89 Total $ 779 $ 20 $ (1) $ 798 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of sovereign bonds and municipal bonds. (3) Consists of sovereign bonds and supranational bonds. (4) Consists of asset-backed securities. (5) See Note 7, "Deferred Compensation" for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Consolidated Balance Sheets. The following table summarizes the fair values of investments classified as marketable debt securities by contractual maturity date as of January 31, 2023: Fair Value Due within 1 year $ 90 Due in 1 year through 5 years 124 Due in 5 years through 10 years 6 Due after 10 years 7 Total $ 227 As of both January 31, 2023 and 2022, 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 fiscal 2023. 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 as of both January 31, 2023 and 2022. There were no write offs of accrued interest receivables for both fiscal 2023 and 2022. There were no material realized gain or loss for the sales or redemptions of debt securities during fiscal 2023, 2022, and 2021. Realized gains and losses from the sale or redemption of marketable securities are recorded in “Interest and other expense, net” on the Company’s Consolidated Statements of Operations. Proceeds from the sale and maturity of marketable debt securities for fiscal 2023, 2022, and 2021 were $450 million, $38 million, and $17 million, respectively. Strategic investments in equity securities As of January 31, 2023 and 2022, Autodesk had $177 million and $134 million, respectively, in direct investments in privately held companies. These strategic investments in 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. These strategic investments in equity securities are generally subject to a security-specific restriction which limits the sale or transfer of the respective equity security during the holding period. Adjustments to the carrying value of our strategic investments in equity securities with no readily determined fair values measured using the measurement alternative are included in Interest and Other Expense, net on the Company’s Consolidated Statements of Operations. These adjustments were as follows: Fiscal Year Ended Cumulative Amount as of 2023 2022 2021 January 31, 2023 Upward adjustments $ 6 $ 7 $ 7 $ 29 Negative adjustments, including impairments (9) (17) (52) (86) Net adjustments $ (3) $ (10) $ (45) $ (57) Autodesk does not consider the remaining investments to be impaired as of January 31, 2023. During the fiscal years ended January 31, 2023 and 2022, Autodesk recognized gains of $2 million and $8 million, respectively, on the disposition of strategic investments in equity securities. During the fiscal year ended January 31, 2021, Autodesk recognized no gain on the disposition of strategic investments in equity securities. Fair Value 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. The following tables summarize the Company's financial instruments measured at fair value on a recurring basis by significant investment category as of January 31, 2023 and 2022: January 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents (1): Money market funds $ 737 $ — $ — $ 737 Commercial paper — 169 — 169 Certificates of deposit — 35 — 35 U.S. government securities — 13 — 13 Other (2) 4 8 — 12 Marketable securities: Short-term Corporate debt securities — 44 — 44 Commercial paper — 42 — 42 Asset backed securities — 19 — 19 U.S. government securities — 17 — 17 Other (3) — 3 — 3 Long-term Corporate debt securities — 45 — 45 U.S. government securities — 35 — 35 Asset backed securities — 13 — 13 Other (4) — 9 — 9 Long-term other assets: Mutual funds (5) (6) 86 — — 86 Convertible debt securities (6) — — 2 2 Derivative assets: Derivative contract assets (6) — 14 — 14 Derivative liabilities: Derivative contract liabilities (7) — (31) — (31) Total $ 827 $ 435 $ 2 $ 1,264 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of custody cash deposits, agency discount notes, municipal bonds, corporate debt securities, asset-backed securities, and mortgage-backed securities. (3) Consists of mortgage-backed securities, agency mortgage-backed securities, common stock, and agency collateralized mortgage obligations. (4) Consists of agency mortgage-backed securities, agency bonds, agency collateralized mortgage obligations, mortgage-backed securities, and collateralized mortgage obligations. (5) See Note 7, "Deferred Compensation" for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Consolidated Balance Sheets. (7) Included in “Other accrued liabilities” in the accompanying Consolidated Balance Sheets. January 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents (1): Money market funds $ 302 $ — $ — $ 302 Commercial paper — 55 — 55 U.S. government securities — 25 — 25 Custody cash deposit 18 — — 18 Corporate debt securities — 18 — 18 Certificates of deposit — 6 — 6 Other (2) — 4 — 4 Marketable securities: Short-term Commercial paper — 103 — 103 Corporate debt securities — 61 — 61 Asset backed securities — 26 — 26 Certificates of deposit — 14 — 14 U.S. government securities — 13 — 13 Municipal bonds — 11 — 11 Common Stock 4 — — 4 Other (3) 4 — 4 Long-term Corporate debt securities — 44 — 44 Other (4) — 1 — 1 Long-term other assets: Mutual Funds (5) (6) 89 — — 89 Derivative assets Derivative contract assets (6) — 18 — 18 Derivative liabilities Derivative contract liabilities (7) — (11) — (11) Total $ 413 $ 392 $ — $ 805 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of sovereign bonds and municipal bonds. (3) Consists of sovereign bonds and supranational bonds. (4) Consists of asset backed securities. (5) See Note 7, "Deferred Compensation" for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Consolidated Balance Sheets. (7) Included in “Other accrued liabilities” in the accompanying Consolidated Balance Sheets. A reconciliation of the change in Autodesk’s Level 3 items for the fiscal year ended January 31, 2023, is as follows: Fair Value Measurements Using Derivative Contract Convertible Debt Securities Total Balances, January 31, 2022 $ — $ — $ — Purchases 2 3 5 Impairments — (2) (2) Loss included in earnings (2) — (2) Gain in other comprehensive (loss) income — 1 1 Balances, January 31, 2023 $ — $ 2 $ 2 |
Equity Compensation
Equity Compensation | 12 Months Ended |
Jan. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Compensation | Equity Compensation Stock Plans The 2022 Equity Incentive Plan (the “2022 Plan”) was approved by Autodesk’s stockholders and became effective on June 16, 2022. The 2022 Plan replaced the 2012 Employee Stock Plan, as amended, and the 2012 Outside Directors’ Stock Plan, as amended (collectively, the “Prior Plans”), and no further equity awards may be granted under the Prior Plans. The 2022 Plan reserves up to 23 million shares. The 2022 Plan permits the grant of stock options, restricted stock units, and restricted stock awards to employees and non-employee members of the Board of Directors. Each restricted stock unit or restricted stock award granted will be counted against the shares authorized for issuance under the 2022 Plan as 2.08 shares. If a granted option, restricted stock unit, or restricted stock award expires or becomes unexercisable for any reason, the unpurchased or forfeited shares that were granted may be returned to the 2022 Plan and may become available for future grant under the 2022 Plan. As of January 31, 2023, 2 million shares subject to restricted stock units and restricted stock awards have been granted under the 2022 Plan. Restricted stock units that were granted under the 2022 Plan vest over one Pursuant to the BuildingConnected acquisition on January 23, 2019, the Company assumed the unvested options under the BuildingConnected, Inc. 2013 Stock Plan (“BuildingConnected 2013 Plan”). No further equity awards will be granted under the BuildingConnected 2013 Plan. As of January 31, 2023, approximately 4 thousand shares subject to options remain outstanding under the BuildingConnected 2013 Plan. Options that were granted under the BuildingConnected 2013 Plan vest over a four-year period and expire 10 years from the date of grant. The BuildingConnected 2013 Plan will expire on May 6, 2023. The following sections summarize activity under Autodesk’s stock plans. Restricted Stock Units: A summary of restricted stock activity for the fiscal year ended January 31, 2023, was as follows: Unreleased Restricted Stock Units (in thousands) Weighted average grant date fair value per share Unvested restricted stock at January 31, 2022 4,033 $ 251.17 Granted 3,742 198.89 Vested (2,388) 244.14 Canceled/Forfeited (537) 231.88 Performance Adjustment (1) (2) 299.07 Unvested restricted stock at January 31, 2023 4,848 $ 216.20 _______________ (1) Based on Autodesk’s financial results and relative total stockholder return for the fiscal 2022 performance period. The performance stock units were attained at rates ranging from 87% to 113% of the target award. For the restricted stock granted during fiscal years ended January 31, 2023, 2022, and 2021, the weighted average grant date fair values were $198.89, $288.13, and $224.20, respectively. The fair value of the shares vested during fiscal years ended January 31, 2023, 2022, and 2021 were $490 million, $620 million, and $503 million, respectively. During the fiscal year ended January 31, 2023, Autodesk granted 3 million restricted stock units. Restricted stock units vest over periods ranging from immediately upon grant to a pre-determined date that is typically within three years from the date of grant. Restricted 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. The fair value of the restricted stock units is expensed ratably over the vesting period. During the fiscal years ended January 31, 2023 and 2022, Autodesk settled liability-classified awards of $11 million and $3 million, respectively. 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. Autodesk recorded stock-based compensation expense related to restricted stock units of $510 million, $425 million, and $309 million during fiscal years ended January 31, 2023, 2022, and 2021, respectively. As of January 31, 2023, total compensation cost not yet recognized of $722 million related to non-vested awards is expected to be recognized over a weighted average period of 1.85 years. At January 31, 2023, the number of restricted stock units granted but unvested was 4 million. During the fiscal year ended January 31, 2023, Autodesk granted 239 thousand 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 are primarily based on revenue and free cash flow goals adopted by the Compensation and Human Resource Committee and 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 2023 as well as one-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 two-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 three-year Relative TSR (covering years one, two and three). The performance criteria for the performance stock units vested during fiscal year ended January 31, 2023, was based on revenue and free cash flow goals adopted by the Compensation and Human Resource Committee. Additionally, during fiscal year ended January 31, 2023, Autodesk granted 115 thousand 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. The fair value of the performance stock units is expensed using the accelerated attribution over the vesting period. Autodesk recorded stock-based compensation expense related to performance stock units of $54 million, $68 million, and $31 million during fiscal years ended January 31, 2023, 2022, and 2021, respectively. As of January 31, 2023, total compensation cost not yet recognized of $8 million related to unvested performance stock units, is expected to be recognized over a weighted average period of 0.71 years. At January 31, 2023, the number of performance stock units granted but unvested was 461 thousand. On May 20, 2022, the Compensation and Human Resource Committee of the Board of Directors approved an immaterial modification to certain elements of the fiscal year 2023 performance criteria for the performance stock units granted in fiscal years 2023, 2022, and 2021. Autodesk accounted for the change as a modification and revalued the awards as of the modification date resulting in no material incremental stock-based compensation expense. Common Stock Autodesk agreed to issue a fixed amount of $5 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. During fiscal year ended January 31, 2022, Autodesk issued 8 thousand shares at an aggregate fair value of $3 million. During fiscal year ended January 31, 2023, Autodesk issued the remaining 13 thousand shares at an aggregate fair value of $3 million. The awards were accounted for as liability-classified awards and were recognized as compensation expense using the straight-line method over the vesting period. Autodesk issued 74 thousand shares of restricted common stock to certain employees in connection with a fiscal 2021 acquisition. The fair value of the restricted common stock was recorded as compensation for post-acquisition services and recognized as expense using the straight-line method over the three-year vesting period. See Note 6, “Acquisitions,” for further discussion. Autodesk issued 9 thousand 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 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 6, “Acquisitions,” for further discussion. Autodesk agreed to issue a fixed amount of $13 million in shares of common stock to certain employees in connection with a fiscal 2022 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 volume weighted average closing price (“VWAP”) of Autodesk’s common stock for the ninety consecutive trading day period ending on the release date. During fiscal year ended January 31, 2023, Autodesk issued 24 thousand shares at an aggregate fair value of $5 million. As of January 31, 2023, the remaining shares to be issued are estimated to be 39 thousand. The awards are accrued as liability-classified awards and are recognized as compensation expense using the straight-line method over the vesting period. See Note 6, “Acquisitions,” for further discussion. Autodesk agreed to issue a fixed amount of $11 million in common stock at a future date to certain employees in connection with other fiscal 2022 acquisitions. 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 VWAP of Autodesk’s common stock at the issuance date. During fiscal year ended January 31, 2023, Autodesk issued 18 thousand shares at an aggregate fair value of $3 million. As of January 31, 2023, the remaining shares to be issued are estimated to be 34 thousand. The awards are accounted for as liability-classified awards and are recognized as compensation expense using the straight-line method over the vesting period. Additionally, Autodesk issued 13 thousand shares of restricted common stock to certain employees in connection with these fiscal 2022 acquisitions. These shares of restricted common stock were recorded as “Prepaid expenses and other current assets” and “Long-term other assets” on our Consolidated Balance Sheets and will be amortized to stock-based compensation expense for post-acquisition services using the straight-line method over the vesting period. See Note 6, “Acquisitions,” for further discussion. Autodesk issued 40 thousand shares of restricted common stock to certain employees in connection with a fiscal 2023 acquisition. These shares of restricted common stock were recorded as “Prepaid expenses and other current assets” and “Long-term other assets” on our 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. Additionally, Autodesk agreed to issue a fixed amount of $5 million in common stock at a future date to certain employees in connection with a fiscal 2023 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 VWAP of Autodesk’s common stock at the issuance date. As of January 31, 2023, shares to be issued are estimated to be 23 thousand. The awards are accounted for as liability-classified awards and are recognized as compensation expense using the straight-line method over the vesting period. See Note 6, “Acquisitions,” for further discussion. Autodesk recorded stock-based compensation expense related to common stock shares of $32 million, $17 million, and $2 million during the fiscal years ended January 31, 2023, 2022, and 2021, 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. At January 31, 2023, a total of 5 million shares were available for future issuance. Under the ESPP, the Company issues shares on the first trading day following March 31 and September 30 of each fiscal year. The ESPP does not have an expiration date. A summary of the ESPP activity for the fiscal years ended January 31, 2023, 2022, and 2021 was as follows: Fiscal year ended January 31, 2023 2022 2021 Issued shares (in thousands) 740 851 890 Average price of issued shares $ 166.44 $ 130.13 $ 122.73 Weighted average grant date fair value of awards granted under the ESPP $ 67.77 $ 84.21 $ 55.98 Autodesk recorded $62 million, $37 million, and $40 million of compensation expense associated with the ESPP in fiscal 2023, 2022, and 2021, respectively. During the fiscal year ended January 31, 2023, Autodesk reset the price for certain offering dates in connection with Autodesk’s ESPP as Autodesk’s closing stock price for the respective offering dates was above the closing stock price on March 31, 2022 and on September 30, 2022, which triggered new 24-month offering periods through March 31, 2024 and September 30, 2024, respectively, resulting in aggregate modification expense of approximately $21 million to be recognized over the new offering periods. Equity Compensation Plan Information The following table summarizes the number of outstanding options and awards granted to employees and directors, as well as the number of securities remaining available for future issuance under these plans as of January 31, 2023: (a) (b) (c) Plan category Number of securities to be issued upon exercise or vesting of outstanding options and awards (in millions) Weighted-average exercise price of outstanding options Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (in millions) (1) Equity compensation plans approved by security holders 5 $ 21.03 26 Total 5 $ 21.03 26 ____________________ (1) Included in this amount are 5 million securities available for future issuance under Autodesk’s ESPP. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consists of the following: Fiscal year ended January 31, 2023 2022 2021 Federal: Current $ 219 $ (1) $ 10 Deferred (222) (5) (740) State: Current 28 2 19 Deferred (19) 1 (58) Foreign: Current 151 83 88 Deferred (34) (12) 20 Income tax provision (benefit) $ 123 $ 68 $ (661) Foreign pretax income was $755 million in fiscal 2023, $560 million in fiscal 2022, and $528 million in fiscal 2021. The differences between the U.S. statutory rate and the aggregate income tax provision are as follows: Fiscal year ended January 31, 2023 2022 2021 Income tax provision at U.S. Federal statutory rate $ 199 $ 119 $ 115 State income tax benefit, net of the U.S. Federal benefit (1) (3) 2 (43) Foreign income taxed at rates different from the U.S. statutory rate (1) 22 (25) (11) Valuation allowance adjustment (1) (38) — (637) Tax effect of non-deductible stock-based compensation (1) 34 32 25 Stock compensation (windfall) / shortfall (1) 10 (43) (35) Research and development tax credit benefit (1) (12) (19) (16) Closure of income tax audits and changes in uncertain tax positions (1) 11 — — Tax effect of officer compensation in excess of $1.0 million 10 7 5 Non-deductible expenses 1 5 2 Global intangible low-taxed income, foreign derived intangible income (106) 24 (65) India withholding tax refund — (44) — Acquisition-related integrations (2) 9 — Other (1) (3) 1 (1) Income tax provision (benefit) $ 123 $ 68 $ (661) _______________ (1) The above comparative for fiscal 2021 has reclassified to conform to the current period presentation. Autodesk’s fiscal 2023 tax expense is primarily driven by the U.S. and foreign tax expense, including withholding taxes on payments made to the United States or to Singapore from foreign sources, an increase in tax expense relating to stock-based compensation, final U.S. foreign tax credit regulations enacted in fiscal 2023, offset by the benefit from the Canada valuation allowance release and a U.S. foreign derived intangible income benefit driven by the capitalization of research and development expenditures starting in fiscal 2023 as required by the Tax Act. Significant components of Autodesk’s deferred tax assets and liabilities are as follows: January 31, 2023 2022 Stock-based compensation $ 54 $ 56 Research and development tax credit carryforwards 103 235 Foreign tax credit carryforwards — 59 Accrued compensation and benefits 7 6 Other accruals not currently deductible for tax 26 23 Capitalized research and development (1) 340 123 Fixed assets 22 24 Lease liability 92 106 Tax loss carryforwards 38 68 Deferred revenue 653 387 Other 23 23 Total deferred tax assets 1,358 1,110 Less: valuation allowance (148) (188) Net deferred tax assets 1,210 922 Indefinite lived intangibles (109) (95) Purchased technology (1) (26) (34) Right-of-use assets (58) (74) Unremitted earnings of foreign subsidiaries (2) (6) Deferred taxes on foreign earnings (33) (1) Total deferred tax liabilities (228) (210) Net deferred tax assets $ 982 $ 712 _______________ (1) The above comparative for fiscal 2022 has reclassified to conform to the current period presentation. Autodesk regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, Autodesk evaluates whether it is more likely than not that some or all of the deferred tax assets will not be realized based on all available positive and negative evidence. In evaluating the need for a valuation allowance, prior to fiscal 2021 Autodesk considered global cumulative losses arising from the Company’s business model transition as a significant piece of negative evidence. During fiscal 2021 Autodesk recognized cumulative earnings on a global basis and was profitable in the U.S. and forecasted future cumulative earnings in U.S. jurisdiction for future periods. In the fourth quarter of fiscal 2021, Autodesk released the valuation allowance against the Company’s U.S. deferred tax assets, due to positive evidence indicating that these deferred tax assets are more likely than not to be realized. The Company has retained a valuation allowance against California and Michigan deferred tax assets and deferred tax assets that will convert into a capital loss upon reversal as we do not have sufficient income of the appropriate character to benefit these deferred tax assets. We released our Canada valuation allowance in fiscal 2023 due to positive evidence supporting the utilization of the R&D credits before they expire, resulting in a $38 million non-cash benefit to earnings. The Company continues to retain a valuation allowance of $23 million against foreign deferred tax assets in the Netherlands and Australia as of January 31, 2023. The valuation allowance decreased by $40 million in fiscal 2023, primarily due to the release of the Canada valuation allowance of $38 million. The valuation allowance increased by $2.0 million in fiscal 2022, primarily due to the generation of deferred tax attributes and the establishment of a valuation allowance in Australia. The valuation allowance decreased by $697 million in fiscal 2021, primarily due to the U.S. valuation allowance release of $679 million. The company has elected to recognize any potential GILTI obligations as an expense in the period it is incurred. As of January 31, 2023, Autodesk had $14 million of cumulative U.S. federal tax loss carryforwards and $355 million of cumulative U.S. state tax loss carryforwards, which may be available to reduce future income tax liabilities in federal and state jurisdictions. The pre-fiscal 2019 U.S. federal tax loss carryforward will expire beginning fiscal 2035 through fiscal 2039. U.S. federal losses generated beginning in fiscal 2019 do not expire and are carried forward indefinitely. The U.S. state tax loss carryforward will expire beginning fiscal 2025 through fiscal 2043. In addition to U.S. federal and state tax loss carryforwards, the Netherlands, Norway, and other foreign jurisdictions incurred tax losses totaling $100 million, which may be available to reduce future income tax liabilities. Our Norway losses, of $51 million, have an indefinite expiration period. The pre-fiscal 2023 Netherlands losses of $43 million will expire beginning in fiscal 2026 through fiscal 2028. Netherlands losses generated beginning in fiscal 2023 do not expire and are carried forward indefinitely. All Netherlands losses have a full valuation allowance against them on our balance sheet as the Company has determined it is more likely than not that these losses will not be utilized. As of January 31, 2023, Autodesk had $115 million of cumulative California state research tax credit carryforwards, and $46 million of cumulative Canadian federal research, which may be available to reduce future income tax liabilities in the respective jurisdictions. The state research tax credit carryforwards may reduce future California income tax liabilities indefinitely, and the Canadian research tax credit carryforwards will expire beginning fiscal 2031 through fiscal 2043. Autodesk also has $1 million of cumulative U.S. federal foreign tax credit carryforwards, which may be available to reduce future U.S. tax liabilities. These foreign tax credits will expire beginning fiscal 2027 through fiscal 2032. As discussed above, the California cumulative assets have full valuation allowance against them on our balance sheet as the Company has determined it is more likely than not that these losses and credits will not be utilized. Utilization of net operating losses and tax credits may be subject to an annual limitation due to ownership change limitations provided in the Internal Revenue Code and similar state provisions. This annual limitation may result in the expiration of net operating losses and credits before utilization. No ownership change has occurred through the balance sheet date that would result in permanent losses of the U.S. federal and state tax attributes. As of January 31, 2023, the Company had $223 million of gross unrecognized tax benefits, of which $38 million would reduce our valuation allowance, if recognized. The remaining $185 million would impact the effective tax rate. The amount of unrecognized tax benefits will decrease in the next twelve months for statute lapse of approximately $4 million. A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits is as follows: Fiscal Year Ended January 31, 2023 2022 2021 Gross unrecognized tax benefits at the beginning of the fiscal year $ 207 $ 198 $ 221 Increases for tax positions of prior years 8 9 13 Decreases for tax positions of prior years (3) (7) (41) Increases for tax positions related to the current year 17 7 6 Decreases relating to settlements with taxing authorities (5) — — Reductions as a result of lapse of the statute of limitations (1) — (1) Gross unrecognized tax benefits at the end of the fiscal year $ 223 $ 207 $ 198 It is the Company’s continuing practice to recognize interest and/or penalties related to income tax matters in income tax expense. Autodesk had $5 million, $7 million, and $5 million, net of tax benefit, accrued for interest and penalties related to unrecognized tax benefits as of January 31, 2023, 2022, and 2021, respectively. There was $(2) million, $2 million, and $2 million of net expense for interest and penalties related to tax matters recorded through the consolidated statements of operations for the years ended January 31, 2023, 2022, and 2021, respectively. Autodesk’s U.S. and state income tax returns for fiscal 2002 through fiscal 2023 remain open to examination due to either net operating loss or credit carryforward. The Internal Revenue Service notified the Company of examination of the Company’s consolidated federal income tax returns for fiscal 2020 and 2021. This audit commenced in February 2022. |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Fiscal 2023 Acquisitions The results of operations for the following acquisitions are included in the accompanying Consolidated Statements of Operations since their respective acquisition dates. Pro forma results of operations have not been presented because the effects of these acquisitions were not material to Autodesk’s Consolidated Financial Statements. During the fiscal year ended January 31, 2023, Autodesk completed two business combinations. The acquisition-date fair value of the consideration transferred totaled $114 million, which consisted of $96 million of cash, 40 thousand shares of Autodesk’s restricted common stock at an aggregate fair value of $10 million, and Autodesk will issue a fixed amount of $5 million in common stock at future dates to certain employees. Of the total consideration transferred, $97 million is considered purchase consideration. Of the remaining amount, $10 million was recorded in “Prepaid expenses and other current assets” and “Long-term other assets” on our Consolidated Balance Sheets and will be amortized to stock-based compensation expense using the straight-line method over the vesting period, $5 million was accounted for as liability-classified awards and will be recognized as compensation expense using the straight-line method over the vesting period and $2 million was recorded as stock-based compensation expense on the date of acquisition. The 40 thousand shares of restricted common stock are subject to forfeiture until the second anniversary of the acquisition closing date. The shares are released on the first and second anniversaries, 40% and 60%, respectively, subject to continued employment. Issuance of the $5 million fixed value in common stock is dependent on the respective employees’ continued employment and vests 40% and 60% on the first and second anniversaries of the closing date, respectively. The number of shares will be determined based on the VWAP of Autodesk’s common stock for the ninety consecutive trading day period ending on the release date. As of January 31, 2023, shares to be issued are estimated to be 23 thousand. See also Note 4, “Equity Compensation ”. Purchase Price Allocation The acquisitions during fiscal 2023 were accounted for as business combinations, and Autodesk recorded the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of each respective 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. No goodwill is deductible for U.S. income tax purposes. The transaction costs related to the acquisitions were not material. The following table summarizes the fair value of the assets acquired and liabilities assumed by major class for the business combinations that were completed during the fiscal year ended January 31, 2023: Aggregated Total Developed technologies $ 8 Customer relationships 4 Goodwill 85 Deferred revenue and long-term deferred revenue (2) Long-term deferred income taxes 1 Net tangible assets 1 Total $ 97 For the business combinations, the allocation of purchase price consideration to certain assets and liabilities as well as the final amount of purchase consideration are not yet finalized. For the items not yet finalized, Autodesk's estimates and assumptions are subject to change within the measurement period (up to one year from the acquisition date). The primary areas of the preliminary purchase price allocation that are not yet finalized are amounts for tax assets and liabilities and residual goodwill. Fiscal 2022 Acquisitions Upchain On May 11, 2021, Autodesk acquired 100% of the outstanding stock of Upchain Inc. (“Upchain”), a cloud-based provider of product lifecycle management and product data management systems, for approximately $127 million in cash and Autodesk will issue a fixed amount of $13 million in common stock at future dates to certain employees in connection with the acquisition for a total consideration of $140 million. Of the total consideration transferred, $124 million is considered purchase consideration. Of the remaining amount, $13 million is accounted for as liability-classified awards and recognized as compensation expense using the straight-line method over the vesting period, and $3 million was recorded as stock-based compensation expense during the fiscal year ended January 31, 2022. Issuance of the $13 million fixed value in common stock is dependent on the respective employees’ continued employment and vests 40% and 60% on the first and second anniversaries of the closing date, respectively. The number of shares will be determined based on the VWAP of Autodesk’s common stock for the ninety consecutive trading day period ending on the release date. During the fiscal year ended January 31, 2023, Autodesk issued 24 thousand shares at an aggregate fair value of $5 million. As of January 31, 2023, shares to be issued are estimated to be 39 thousand. See also Note 4, “Equity Compensation ”. Autodesk expects to integrate Upchain’s unified cloud platform in Autodesk solutions to centralize data management and process management. Innovyze 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 acquisition-date fair value of the consideration transferred totaled $1,038 million, which consisted of $1,035 million of cash and 9 thousand shares of Autodesk’s restricted common stock at an aggregate fair value of $3 million. Of the total consideration transferred, $1,035 million is considered purchase consideration. The remaining amount of $3 million was recorded in “Prepaid expenses and other current assets” and “Long-term other assets”. The 9 thousand 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 also Note 4, “Equity Compensation ”. Other Acquisitions During the fiscal year ended January 31, 2022, Autodesk completed four additional business combinations. The acquisition-date fair value of the consideration transferred totaled $113 million, which consisted of $99 million of cash, a fixed amount of $11 million in common stock to be issued at future dates to certain employees in connection with the acquisition, and 13 thousand shares of Autodesk’s restricted common stock at an aggregate fair value of $3 million. Of the total consideration transferred, $99 million is considered purchase consideration. The remaining amounts of $3 million was recorded in “Prepaid expenses and other current assets” and “Long-term other assets” and $11 million is accounted for as liability-classified awards and recognized as compensation expense using the straight-line method over the vesting period. The results of operations for Upchain, Innovyze, and the other acquisitions were included in the accompanying Consolidated Statement of Operations from the dates of the respective acquisitions. Goodwill of $101 million, $273 million, and $72 million is deductible for U.S. income tax purposes for Upchain, Innovyze, and the other acquisitions, respectively. Fiscal 2021 Acquisitions Spacemaker AS On November 23, 2020, Autodesk acquired Spacemaker AS (“Spacemaker”). Spacemaker is a leading provider of cloud-based artificial intelligence technology and generative design enabling architects, urban designers, and real estate developers to optimize and maximize the potential of a building site, especially during early-stage design. The acquisition-date fair value of the consideration transferred totaled $252 million, which consisted of $214 million of cash and 147 thousand shares of Autodesk’s common stock at an aggregate fair value of $38 million. Of the total consideration transferred, $231 million is considered purchase consideration. Of the remaining amount, $19 million was recorded in “Prepaid expenses and other current assets” and “Long-term other assets” on our Consolidated Balance Sheets and will be amortized to stock-based compensation expense, and $2 million was recorded as stock-based compensation expense during the fiscal quarter ended January 31, 2021. The 147 thousand shares of common stock are to be held in escrow until the third anniversary of the acquisition closing date and a portion of those shares are subject to forfeiture by the employee if employment terminates during the three-year employment period. See Note 4, “Equity Compensation ,” for further discussion. Other Acquisitions During the fiscal year ended January 31, 2021, Autodesk also completed two other business combinations. The acquisition-date fair value of the cash consideration transferred totaled $45 million. The results of operations for Spacemaker and the other acquisitions were included in the accompanying Consolidated Statement of Operations from the dates of the respective acquisitions. Goodwill of $195 million is deductible for U.S. income tax purposes. |
Deferred Compensation
Deferred Compensation | 12 Months Ended |
Jan. 31, 2023 | |
Compensation Related Costs [Abstract] | |
Deferred Compensation | Deferred Compensation At January 31, 2023, 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 $86 million. Of this amount, $7 million was classified as current and $79 million was classified as non-current in the Consolidated Balance Sheet. Of the $89 million related to investments and deferred compensation liability in a rabbi trust as of January 31, 2022, $7 million was classified as current and $82 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 Consolidated Balance Sheets under “Prepaid expenses and other current assets” and “Long-term other assets,” respectively. The current and non-current portions of the deferred compensation liability are recorded in the Consolidated Balance Sheets under “Accrued compensation” and “Long-term other liabilities,” respectively. Costs to obtain a contract with a customer |
Borrowing Arrangements
Borrowing Arrangements | 12 Months Ended |
Jan. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | Borrowing Arrangements In November 2022, the Company entered into an Amended and Restated Credit Agreement, (the “Credit Agreement”) by and among the Company, the lenders party thereto and Citibank, N.A. (“Citibank”), as administrative agent, which provides for an unsecured revolving loan facility in the aggregate principal amount of $1.5 billion, with an option to be increased up to $2.0 billion. The revolving credit facility 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 requires the Company to maintain a maximum leverage ratio of Consolidated Covenant Debt to Consolidated EBITDA (each as defined in the Credit Agreement) no greater than 3.50:1.00 during the term of the credit facility, subject to adjustment following the consummation of certain acquisitions up to 4.00:1.00 for up to four consecutive fiscal quarters. At January 31, 2023, Autodesk was in compliance with the Credit Agreement covenants. Revolving loans under the Credit Agreement will bear interest, at the Company’s option, at either (i) a per annum rate equal to the Base Rate (as defined in the Credit Agreement) plus a margin of between 0.000% and 0.375%, depending on the Company’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 Secured Overnight Financing Rate, plus a margin of between 0.785% and 1.375%, depending on Company’s Public Debt Rating. The interest rates for the revolving credit facility are subject to upward or downward adjustments, on an annual basis, if the Company achieves, or fails to achieve, certain sustainability-linked targets based on two key performance indicator metrics: (i) the amount of scope 1 and 2 greenhouse gas emissions from the global operations of the Company and its subsidiaries during a fiscal year less qualified emissions reduction instruments and (ii) the percentage of employees of the Company and its subsidiaries identifying as female working in technical roles. The maturity date on the Credit Agreement is September 30, 2026. At January 31, 2023, Autodesk had no outstanding borrowings under the Credit Agreement. In October 2021, Autodesk issued $1.0 billion aggregate principal amount of 2.4% notes due December 15, 2031 (“2021 Notes”). Net of a discount of $3 million and issuance costs of $9 million, Autodesk received net proceeds of $988 million from issuance of the 2021 Notes. Both the discount and issuance costs are being amortized to interest expense over the term of the 2021 Notes using the effective interest method. The 2021 Notes were designated as sustainability bonds, the net proceeds of which are used to fund environmentally and socially responsible projects in the following areas: eco-efficient products, production technologies, and processes, sustainable water and wastewater management, renewable energy & energy efficiency, green buildings, pollution prevention and control, and socioeconomic advancement and empowerment. In January 2020, Autodesk issued $500 million aggregate principal amount of 2.85% notes due January 15, 2030 (“2020 Notes”). Net of a discount of $1 million and issuance costs of $5 million, Autodesk received net proceeds of $494 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 $450 million 2015 Notes, as defined below, and the remainder is available for general corporate purposes. In June 2017, Autodesk issued $500 million aggregate principal amount of 3.5% notes due June 15, 2027 (the “2017 Notes”). Net of a discount of $3 million and issuance costs of $5 million, Autodesk received net proceeds of $492 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 million of debt due December 15, 2017, and the remainder is available for general corporate purposes. In June 2015, Autodesk issued $300 million aggregate principal amount of 4.375% notes due June 15, 2025 (“ 2015 Notes”). Net of a discount of $1 million, and issuance costs of $3 million, Autodesk received net proceeds of $296 million from issuance of the 2015 Notes. Both the discount and issuance costs are being amortized to interest expense over the respective terms of the 2015 Notes using the effective interest method. The proceeds of the 2015 Notes are available for general corporate purposes. In December 2012, Autodesk issued $350 million aggregate principal amount of 3.6% notes due December 15, 2022 (“2012 Notes”). Autodesk received net proceeds of $347 million from issuance of the 2012 Notes, net of an aggregate total discount and issuance costs of $3 million. Both the discount and issuance costs were being amortized to interest expense over the respective terms of the 2012 Notes using the effective interest method. On December 15, 2022, Autodesk repaid the $350 million 2012 Notes. Autodesk paid a redemption price of $350 million, plus accrued and unpaid interest up to, but not including, the date of redemption. The 2021 Notes, 2020 Notes, 2017 Notes, and the 2015 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 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 January 31, 2023, were as follows: Aggregate Principal Amount Fair value 2015 Notes $ 300 $ 298 2017 Notes 500 484 2020 Notes 500 443 2021 Notes 1,000 836 The expected future principal payments for all borrowings as of January 31, 2023, were as follows: Fiscal year ending 2024 $ — 2025 — 2026 300 2027 — 2028 500 Thereafter 1,500 Total principal outstanding $ 2,300 |
Leases
Leases | 12 Months Ended |
Jan. 31, 2023 | |
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 67 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 7 years. Options to extend the lease are included in the lease liability if they are reasonably certain of being exercised. Options to terminate are considered in determining 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 Consolidated Statement 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 Consolidated Statements of Cash Flows with the exception of “Lease-related asset impairments” which is presented in “Adjustments to reconcile net income to net cash provided by operating activities”. During the fiscal years ended January 31, 2023 and 2022, Autodesk recorded total operating lease right-of-use assets impairment charges of $29 million and $75 million, respectively. Autodesk did not recognize any charges during the fiscal year ended January 31, 2021. Autodesk assessed the asset groupings for disaggregation based on the proposed changes in use of the facilities. For asset groups where impairment was triggered, Autodesk utilized an income approach to value the asset groups by developing discounted cash flow models. The significant assumptions used in the discounted cash flow models for each of the asset groups included projected sublease income over the remaining lease terms, expected downtime prior to the commencement of future subleases, expected lease incentives offered to future tenants, and discount rates that reflected the level of risk associated with these future cash flows. These significant assumptions are considered Level 1 and Level 2 inputs in accordance with the fair value hierarchy described in Note 1, “Business and Summary of Significant Accounting Policies.” The operating lease right-of-use assets and other lease-related assets charges are included in “general and administrative” in the Company’s Consolidated Statements of Operations. The components of lease cost were as follows: Fiscal Year Ended January 31, 2023 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 8 $ 3 $ 36 $ 27 $ 11 $ 85 Variable lease cost 1 — 6 5 2 14 Fiscal Year Ended January 31, 2022 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 8 $ 2 $ 43 $ 30 $ 15 $ 98 Variable lease cost 1 — 5 4 2 12 Fiscal Year Ended January 31, 2021 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 7 $ 2 $ 45 $ 29 $ 18 $ 101 Variable lease cost 1 — 5 4 2 12 Supplemental operating cash flow information related to leases was as follows: Fiscal Year Ended January 31, 2023 Fiscal Year Ended January 31, 2022 Fiscal Year Ended January 31, 2021 Cash paid for operating leases included in operating cash flows (1) $ 115 $ 107 $ 96 Non-cash operating lease liabilities arising from obtaining operating right-of-use assets 48 53 67 _______________ (1) Includes $14 million, $12 million, and $12 million in variable lease payments not included in “Operating lease liabilities” and “Long-term operating lease liabilities” on the Consolidated Balance Sheet for fiscal years ended January 31, 2023, 2022, and 2021, respectively. The weighted average remaining lease term for operating leases is 6.5 years and 6.9 years at January 31, 2023 and 2022, respectively. The weighted average discount rate was 2.60% and 2.46% at January 31, 2023 and 2022, respectively, Maturities of operating lease liabilities were as follows: Fiscal year ending 2024 $ 94 2025 78 2026 64 2027 43 2028 34 Thereafter 104 417 Less imputed interest 32 Present value of operating lease liabilities $ 385 Autodesk has subleased certain office space to a third party and has classified the sublease as an operating lease. The sublease has a remaining lease term of 9.1 years. Sublease income was $5 million during the fiscal year ended January 31, 2023. There was no sublease income recognized during fiscal years ended January 31, 2022 and 2021, respectively. Sublease income is recorded as a reduction of lease expense in the Company’s Consolidated Statements of Operations. Operating lease amounts in the table above do not include sublease income payments of $86 million. Autodesk expects to receive sublease income payments of approximately $47 million for fiscal 2024 through fiscal 2028 and $39 million thereafter. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Jan. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The fair values of derivative instruments in Autodesk’s Consolidated Balance Sheets were as follows as of January 31, 2023, and January 31, 2022: Balance Sheet Location Fair Value at January 31, 2023 January 31, 2022 Derivative Assets Foreign currency contracts designated as cash flow hedges Prepaid expenses and other current assets $ 9 $ 12 Derivatives not designated as hedging instruments Prepaid expenses and other current assets and long-term other assets 5 6 Total derivative assets $ 14 $ 18 Derivative Liabilities Foreign currency contracts designated as cash flow hedges Other accrued liabilities $ 20 $ 7 Derivatives not designated as hedging instruments Other accrued liabilities 11 4 Total derivative liabilities $ 31 $ 11 The effects of derivatives designated as hedging instruments on Autodesk’s Consolidated Statements of Operations were as follows for the fiscal years ended January 31, 2023, 2022, and 2021, (amounts presented include any income tax effects): Fiscal Year Ended January 31, 2023 2022 2021 Amount of gain (loss) recognized in accumulated other comprehensive loss, net of tax, (effective portion) $ 40 $ 31 $ (28) Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) Net revenue $ 60 $ (12) $ — Cost of revenue (3) — — Operating expenses (21) (5) 4 Total $ 36 $ (17) $ 4 The amount and location of gain (loss) recognized in net income of derivatives not designated as hedging instruments on Autodesk’s Consolidated Statements of Operations were as follows for the fiscal years ended January 31, 2023, 2022, and 2021, (amounts presented include any income tax effects): Fiscal Year Ended January 31, 2023 2022 2021 Interest and other expense, net $ 7 $ 11 $ (1) 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 $934 million at January 31, 2023, and $1.08 billion at January 31, 2022. Outstanding contracts are recognized as either assets or liabilities on the Company’s Consolidated Balance Sheets at fair value. The majority of the net gain of $64 million remaining in “Accumulated other comprehensive loss” as of January 31, 2023, 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 Consolidated Statements of Operations where the effects of the hedge are recorded were as follows for the fiscal years ended January 31, 2023 and 2022: Fiscal Year Ended January 31, 2023 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 Consolidated Statements of Operations $ 4,651 $ 65 $ 343 $ 1,745 $ 1,219 $ 532 (Loss) 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 $ 60 $ — $ (3) $ (10) $ (5) $ (6) Fiscal Year Ended January 31, 2022 Net revenue Cost of revenue Operating expenses Subscription revenue (1) 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 Consolidated Statements of Operations $ 4,060 $ 76 $ 299 $ 1,623 $ 1,115 $ 572 (Loss) 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 $ (11) $ (1) $ — $ (3) $ (1) $ (1) ____________________ (1) In the current fiscal year, the Company changed its presentation of certain subscription plan offerings in our Consolidated Statement of Operations. Accordingly, prior period amounts have been reclassified to conform to the current period presentation in all material respects. See Note 1, “Business and Summary of Significant Accounting Policies,” for further detail. Derivatives not designated as hedging instruments |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments In the normal course of business, Autodesk enters into various purchase commitments for goods or services. Total non-cancellable purchase commitments as of January 31, 2023, were approximately $287 million for periods through fiscal 2033. These purchase commitments primarily result from contracts entered into for the acquisition of cloud services, commitments related to our investment agreements with limited liability partnership funds, and marketing. Autodesk has certain royalty commitments associated with the sale and licensing of certain products. Royalty expense is generally based on a fixed rate over a specified period, dollar amount per unit sold or a percentage of the underlying revenue. Royalty expense, which was recorded under cost of subscription and maintenance revenue and cost of other revenue on Autodesk’s Consolidated Statements of Operations, was $18 million in fiscal 2023, $16 million in fiscal 2022, and $15 million in fiscal 2021. 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, inquiries, investigations, 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. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Jan. 31, 2023 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program Autodesk has stock repurchase programs that are used to offset dilution from the issuance of stock under the Company’s employee stock plans and for such other purposes as may be in the interests of Autodesk and its stockholders, which has the effect of returning excess cash generated from the Company’s business to stockholders. Autodesk repurchased and retired approximately 5 million shares in fiscal 2023 at an average repurchase price of $198.51 per share, 4 million shares in fiscal 2022 at an average repurchase price of $275.50 per share, and 2 million shares in fiscal 2021 at an average repurchase price of $207.61 per share. In November 2022, the Board of Directors authorized the repurchase of $5 billion of the Company's common stock, in addition to the shares remaining under previously announced share repurchase programs. At January 31, 2023, 3 million shares and $5 billion remained available for repurchase under the September 2016 and November 2022 repurchase programs approved by the Board of Directors, respectively . The share repurchase programs do not have an expiration date and the pace and timing of repurchases will depend on factors such as cash generation from operations, available surplus, the volume of employee stock plan activity, remaining shares available in the authorized pool, cash requirements for acquisitions, cash requirements to retire outstanding debt, economic and market conditions, stock price, and legal and regulatory requirements. |
Interest and Other Expense, net
Interest and Other Expense, net | 12 Months Ended |
Jan. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Interest and Other Expense, net | Interest and Other Expense, net Interest and other expense, net, consists of the following: Fiscal Year Ended January 31, 2023 2022 2021 Interest and investment expense, net $ (71) $ (65) $ (51) Gain on foreign currency 15 1 3 Gain (loss) on strategic investments 1 3 (41) Other income 12 8 7 Interest and other expense, net $ (43) $ (53) $ (82) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jan. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, net of taxes, consisted of the following: Net Unrealized Gains (Losses) on Derivative Instruments Net Unrealized Gains (Losses) on Available for Sale Securities Defined Benefit Pension Components Foreign Currency Translation Adjustments Total Balances, January 31, 2021 $ (24) $ 6 $ (21) $ (87) $ (126) Other comprehensive income (loss) before reclassifications 39 12 1 (63) (11) Pre-tax loss reclassified from accumulated other comprehensive income 17 — 5 — 22 Tax effects (8) — (1) — (9) Net current period other comprehensive income (loss) 48 12 5 (63) 2 Balances, January 31, 2022 24 18 (16) (150) (124) Other comprehensive income (loss) before reclassifications 83 — (1) (98) (16) Pre-tax gain reclassified from accumulated other comprehensive income (36) — (3) — (39) Tax effects (7) — 1 — (6) Net current period other comprehensive income (loss) 40 — (3) (98) (61) Balances, January 31, 2023 $ 64 $ 18 $ (19) $ (248) $ (185) |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Jan. 31, 2023 | |
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 during the period. Diluted net income per share is computed using the weighted average number of shares of common stock outstanding during the period and potentially dilutive common shares, including the effect of restricted stock units, performance share awards, and stock options using 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: Fiscal Year Ended January 31, 2023 2022 2021 Numerator: Net income $ 823 $ 497 $ 1,208 Denominator: Weighted average shares for basic net income per share 216 220 219 Effect of dilutive securities 2 2 3 Weighted average shares for dilutive net income per share 218 222 222 Basic net income per share $ 3.81 $ 2.26 $ 5.52 Diluted net income per share $ 3.78 $ 2.24 $ 5.44 |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Jan. 31, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans Pretax Savings Plan Autodesk has a 401(k) plan that covers nearly all U.S. employees. Eligible employees may contribute up to 75% of their pretax salary, subject to limitations mandated by the Internal Revenue Service. Autodesk makes voluntary cash contributions and matches a portion of employee contributions in cash. Autodesk’s contributions were $26 million in fiscal 2023, $24 million in fiscal 2022, and $22 million in fiscal 2021. Autodesk does not allow participants to invest in Autodesk common stock through the 401(k) plan. Defined Benefit Pension Plans Autodesk provides certain defined benefit pension plans to employees located in countries outside of the United States, primarily the United Kingdom, Switzerland, and Japan. The Company deposits funds for specific plans, consistent with the requirements of local law, with insurance companies or third-party trustees, or into government-managed accounts, and accrues for the unfunded portion of the obligation, where material. The projected benefit obligation was $76 million and $107 million as of January 31, 2023, and January 31, 2022, respectively. The accumulated benefit obligation was $69 million and $100 million as of January 31, 2023, and January 31, 2022, respectively. The related fair value of plan assets was $76 million and $112 million as of January 31, 2023, and January 31, 2022, respectively. Our defined pension plan assets are measured at fair value and consist primarily of insurance contracts categorized as level 2 in the fair value hierarchy and an investment fund valued using net asset value. The insurance contracts represent the immediate cash surrender value of assets managed by qualified insurance companies. The assets held in the investment fund are invested in a diversified growth fund actively managed by a third party. Autodesk recognized an aggregate pension liability for the funded status of $5 million and $9 million in “Long-term other liabilities” on the Consolidated Balance Sheet as of January 31, 2023, and January 31, 2022, respectively. Our total net periodic pension plan cost was $3 million, $3 million and $3 million for fiscal years 2023, 2022, and 2021, respectively. Our expected funding for the plans during fiscal 2024 is approximately $5 million. Estimated Future Benefit Payments Estimated benefit payments over the next 10 fiscal years are as follows: Pension Benefits 2024 $ 3 2025 3 2026 3 2027 3 2028 3 2029-2033 17 Total $ 32 Defined Contribution Plans Autodesk also provides defined contribution plans in certain foreign countries where required by statute. Autodesk’s funding policy for foreign defined contribution plans is consistent with the local requirements in each country. Autodesk’s contributions to these plans were $39 million in fiscal 2023, $38 million in fiscal 2022, and $32 million in fiscal 2021. Cash Balance Plans Autodesk provides a cash balance plan that insures the risks of disability, death, and longevity, in which the vested pension capital is reinvested and provides a 100% capital and interest guarantee. The weighted-average guaranteed interest crediting rate for cash balance plans was 1%, 1%, and 1% for mandatory retirement savings and 0.3%, 0.3%, and 0.1% for supplementary retirement savings for fiscal 2023, 2022, and 2021, respectively. Other Plans In addition, Autodesk offers a non-qualified deferred compensation plan to certain key employees whereby they may defer a portion (or all) of their annual compensation until retirement or a different date specified by the employee in accordance with terms of the plan. See Note 7, “Deferred Compensation,” for further discussion. |
SCHEDULE II_ VALUATION AND QUAL
SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Jan. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS (in millions) Description Balance at Additions Deductions Balance at (in millions) Fiscal Year Ended January 31, 2023 Partner program reserves (1) $ 64 928 902 $ 90 Fiscal Year Ended January 31, 2022 Partner program reserves (1) $ 64 623 623 $ 64 Fiscal Year Ended January 31, 2021 Partner Program reserves (1) $ 60 492 488 $ 64 ____________________ (1) The partner program reserves balance impacts "Accounts receivable, net" and "Accounts payable" on the accompanying Consolidated Balance Sheets. |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of ConsolidationThe accompanying consolidated financial statements include the accounts of Autodesk and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in Autodesk’s consolidated financial statements and notes thereto. These estimates are based on information available as of the date of the consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Actual results may differ materially from these estimates. |
Segments | SegmentsAutodesk operates in one operating segment, and accordingly all required financial segment information is included in the 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 maker (“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. |
Revenue Recognition | Revenue Recognition Autodesk’s revenue is divided into three categories: subscription revenue, maintenance revenue, and other revenue. Subscription revenue consists of our term-based product subscriptions, cloud service offerings, and flexible EBAs. Maintenance revenue consists of renewal fees for existing maintenance plan agreements that were initially purchased with a perpetual software license. Under our maintenance plan, customers are eligible to receive unspecified upgrades, when and if available, and technical support. Other revenue consists of revenue from consulting, training, and other products and services. Revenue is recognized when control for these offerings is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for products and services. Autodesk’s contracts with customers may include promises to transfer multiple products and services to a customer. Determining whether the products and services are considered distinct performance obligations that should be accounted for separately or as a single performance obligation may require significant judgment. Judgment is required to determine the level of integration and interdependency between individual components of desktop software applications and cloud functionalities. This determination influences whether the desktop software is considered distinct and accounted for separately as a license performance obligation recognized at the time of delivery, or not distinct and accounted for together with the cloud functionalities as a single subscription performance obligation recognized over time. For product subscriptions and flexible EBA subscriptions in which the desktop software and related cloud functionalities are highly interrelated, the single performance obligation is recognized ratably over the contract term as the subscription is delivered. For subscriptions involving distinct desktop software licenses, the license performance obligation is satisfied when delivered to our customers. For standalone maintenance subscriptions, cloud subscriptions, and technical support services, the performance obligation is satisfied ratably over the contract term as those services are delivered. For consulting services, the performance obligation is satisfied over a period of time as those services are delivered. When an arrangement includes multiple performance obligations which are concurrently delivered and have the same pattern of transfer to the customer (the services transfer to the customer over the contract period), we account for those performance obligations as a single performance obligation. For contracts with more than one performance obligation, the transaction price is allocated among the performance obligations in an amount that depicts the relative standalone selling price (“SSP”) of each obligation. Judgment is required to determine the SSP for each distinct performance obligation. We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount that should be allocated based on the relative SSP of the various products and services. Our indirect channel model includes both a two-tiered distribution structure, where Autodesk sells to distributors that subsequently sell to resellers, and a one-tiered structure where Autodesk sells directly to resellers. For these arrangements, transfer of control begins at the time access to our subscriptions is made available electronically to our customer, provided all other criteria for revenue recognition are met. Judgment is required to determine whether our distributors and resellers have the ability to honor their commitment to pay, regardless of whether they collect payment from their customers. If we were to change this assessment, it could cause a material increase or decrease in the amount of revenue that we report in a particular period. Costs to Obtain a Contract with a Customer Sales 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 commission costs are capitalized and included in “Prepaid expenses and other current assets” and “Long-term other assets” on our Consolidated Balance Sheets. The deferred costs are then amortized over the period of benefit. Autodesk determined that sales commissions earned by internal sales personnel that are related to contract renewals are commensurate with sales commissions earned on the initial contracts, and we determined the period of benefit to be the term of the respective customer contract. Commissions paid to our reseller partners that are related to contract renewals are not commensurate with commissions earned on the initial contract, and we determined the estimated period of benefit by taking into consideration customer retention data, customer contracts, our technology, and other factors. Deferred costs are periodically reviewed for impairment. Amortization expense is included in marketing and sales expenses in the Consolidated Statements of Operations. |
Fair Value Measurement | Fair Value Measurement Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In determining the fair value of our investments, we are sometimes required to use various alternative valuation techniques. Inputs to valuation techniques are either observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two types of inputs have created the following fair value hierarchy: Level 1 - Quoted prices for identical instruments in active markets; Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3 - Unobservable inputs for which there is little or no market data, which require Autodesk to develop its own assumptions. This hierarchy requires us to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. This is generally true for our cash and cash equivalents and the majority of our marketable securities, which we consider to be Level 1 and Level 2 assets. Key inputs for currency derivatives are spot rates, forward rates, interest rates, volatility, and credit default rates. The spot rate for each currency is the same spot rate used for all balance sheet translations at the measurement date. Autodesk reviews for any potential changes on a quarterly basis, in conjunction with our fiscal quarter-end close. It is Autodesk’s assessment that the leveling best reflects current market activity when observing the pricing information for these assets. Autodesk’s Level 2 securities and derivatives are valued primarily using observable inputs other than quoted prices in active markets for identical assets and liabilities. The Company has elected to use the income approach to value derivatives using the observable Level 2 market expectations at measurement date and standard valuation techniques to convert future amounts to a single present amount (discounted). Mid-market pricing is used as a practical expedient and when required, rates are interpolated from commonly quoted intervals published by market sources. See Note 3, “Financial Instruments” for information. |
Cash and Cash Equivalents | Cash and Cash Equivalents Autodesk considers all highly liquid investments with insignificant interest rate risk and remaining maturities of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at estimated fair value. |
Marketable Securities and Strategic Investments | Marketable Securities and Strategic Investments Autodesk classifies its marketable securities as either short-term or long-term generally based on each instrument’s underlying contractual maturity date. Generally, marketable securities with remaining maturities of less than 12 months are classified as short-term and marketable securities with remaining maturities greater than 12 months are classified as long-term. Autodesk may sell certain of its marketable securities prior to their stated maturities for strategic purposes or in anticipation of credit deterioration. Marketable securities are stated at fair value. Marketable securities maturing within one year that are not restricted are classified as current assets. Autodesk determines the appropriate classification of its marketable securities at the time of purchase and re-evaluates such classification as of each balance sheet date. Autodesk carries all “available-for-sale securities” at fair value, with unrealized gains and losses, net of tax, reported in stockholders’ equity until disposition or maturity. Autodesk carries all “trading securities” at fair value, with unrealized gains and losses, recorded in “Interest and other expense, net” in the Company’s Consolidated Statements of Operations. The cost of securities sold is based on the specific-identification method. The company's strategic investments consist of privately held debt and equity securities. Under the measurement alternative method, strategic investments in equity securities are measured at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer in the current period. The carrying value is not adjusted for the Company’s strategic investments in equity securities if there are no observable price changes in a same or similar security from the same issuer or if there are no identified events or changes in circumstances that may indicate impairment, as discussed below. To determine if a transaction is deemed a similar investment, Autodesk considers the rights and obligations between the investments and the extent to which those differences would affect the fair values of those investments with additional consideration for the stage of development of the investee company. The fair value would then be adjusted positively or negatively based on available information such as pricing in recent rounds of financing. The company’s strategic investments in debt and equity securities (Level 3) are valued using significant unobservable inputs or data in an inactive market and the valuation requires the Company’s judgment due to the absence of market prices and inherent lack of liquidity. These assumptions are inherently subjective and involve significant management judgment. Whenever possible, we use observable market data and rely on unobservable inputs only when observable market data is not available, when determining fair value. In determining the estimated fair value of its strategic investments, the Company utilizes the most recent data available to the Company. In addition, the determination of whether an orderly transaction is for a same or similar investment requires significant management judgment including: the rights and obligations of the investments, the extent to which those differences would affect the fair values of those investments, and the impact of any differences based on the stage of operational development of the investee. All of Autodesk’s marketable securities and strategic investments are subject to a periodic impairment review. Strategic investments in equity securities are assessed based on available information such as current cash positions, earnings, earnings and cash flow forecasts, recent operational performance and any other readily available market data. For any available-for-sale debt securities, if Autodesk does not intend to sell and it is not more likely than not that Autodesk will be required to sell the available-for-sale debt security prior to recovery of its amortized cost basis, Autodesk will determine whether a decline in fair value below the amortized cost basis is due to credit-related factors. The credit loss is measured as the amount by which the debt security’s amortized cost basis exceeds the estimate of the present value of cash flows expected to be collected, up to the difference between the amortized cost basis and the fair value. Impairment will be assessed at the individual security level. Credit-related impairment is recognized as an allowance on the Consolidated Balance Sheets with a corresponding adjustment to “Interest and other expense, net” on the Company’s Consolidated Statements of Operations. Any impairment that is not credit-related is recognized in “Accumulated other comprehensive loss” on the Consolidated Balance Sheets. Autodesk does not measure an allowance for credit losses on accrued interest receivables on available-for-sale debt securities separately. Autodesk writes off accrued interest receivables by reversing interest income in the period deemed uncollectible in “Interest and other expense, net” on the Company’s Consolidated Statements of Operations. Any accrued interest receivable on available-for-sale debt securities is recorded in “Cash and cash equivalents,” “Prepaid expenses and other current assets,” or “Long-term other assets” in the accompanying Consolidated Balance Sheets, as applicable. |
Derivative Financial Instruments | Derivative Financial Instruments Under its risk management strategy, Autodesk uses derivative instruments to manage its short-term exposures to fluctuations in foreign currency exchange rates that exist as part of ongoing business operations. Autodesk’s general practice is to hedge a portion of transaction exposures primarily denominated in euros, Japanese yen, British pounds, Canadian dollars, Australian dollars, Singapore dollars, Swiss francs, Swedish krona, Czech koruna and Indian rupees. These instruments generally have maturities between one hedging instruments and foreign currency contracts designated as cash flow hedges but Autodesk does not enter into derivative instrument transactions for trading or speculative purposes. The bank counterparties to the derivative contracts potentially expose Autodesk to credit-related losses in the event of their nonperformance. However, to mitigate that risk, Autodesk only contracts with counterparties who meet the Company’s minimum requirements under its counterparty risk assessment process. Autodesk monitors counterparty risk on at least a quarterly basis and will adjust its exposure to various counterparties as necessary. Autodesk generally enters into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. Autodesk does not have any master netting arrangements in place with collateral features. Autodesk accounts for these derivative instruments as either assets or liabilities on the balance sheet and carries them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Derivatives that do not qualify for hedge accounting are adjusted to fair value through earnings. In addition to these foreign currency contracts, Autodesk holds derivative instruments issued by privately held companies, which are not designated as hedging instruments. These derivatives consist of certain conversion options on the convertible debt securities held by Autodesk or options to acquire equity securities in a privately held company. These derivatives are recorded at fair value as of each balance sheet date and are recorded in “Long-term other assets.” Changes in the fair values of these instruments are recognized in “Interest and other expense, net.” |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The assets and liabilities of Autodesk’s foreign subsidiaries are translated from their respective functional currencies into U.S. dollars at the rates in effect at the balance sheet date, and revenue and expense amounts are translated at exchange rates that approximate those rates in effect during the period in which the underlying transactions occur. Foreign currency translation adjustments are recorded in other comprehensive income (loss). Gains and losses realized from foreign currency transactions, those transactions denominated in currencies other than the foreign subsidiary’s functional currency, are included in “Interest and other expense, net.” Monetary assets and liabilities are remeasured using foreign currency exchange rates at the end of the period, and non-monetary assets and liabilities are remeasured based on historical exchange rates. 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 effectiveness of the cash flow hedge contracts is assessed quantitatively using regression at inception and thereafter. To receive cash flow hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge relationship and the hedges are expected to be highly effective in offsetting changes to future cash flows on hedged transactions. The gains and losses on these hedges are included in “Accumulated other comprehensive loss” and are reclassified into earnings at the time the forecasted revenue or expense is recognized. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, Autodesk reclassifies and discloses the gain or loss on the related cash flow hedge from “Accumulated other comprehensive loss” to “Interest and other expense, net” in the Company’s Consolidated Financial Statements at that time. Derivative contracts and related gain (loss) are presented within “Net cash provided by operating activities” in the Company’s Consolidated Statements of Cash Flow. See Note 3, “Financial Instruments” for additional information. Derivatives Not Designated as Hedging Instruments |
Accounts Receivable, Net | Allowances for uncollectible trade receivables and contract assets are subject to impairment using the expected credit loss model. Allowances for expected credit losses are measured based upon the lifetime expected credit loss which is based on historical experience, the number of days that billings are past due, reasonable economic forecast, including revised forecast data for the current economic environment, customer payment behavior, credit reports, and other customer-specific information. Allowances for credit losses on trade receivables and contract assets were not material as of January 31, 2023. As part of the indirect channel model, Autodesk has a partner incentive program that uses quarterly attainment of monetary rewards to motivate distributors and resellers to achieve mutually agreed upon business goals in a specified time period. The majority of these incentives are recorded as a reduction to deferred revenue in the period the transaction is billed and subsequently recognized as a reduction to subscription or maintenance revenue over the contract period. The remainder reduces subscription or maintenance revenue in the current period. These incentive balances do not require significant assumptions or judgments. Depending on how the payments are made, the reserves associated with the partner incentive program are recognized on the balance sheet as either a reduction to accounts receivable or recorded as accounts payable. |
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 $1.5 billion revolving credit facility. The bank counterparties to the derivative contracts potentially expose Autodesk to credit-related losses in the event of their nonperformance. However, to mitigate that risk, Autodesk only contracts with counterparties who meet the Company's minimum requirements under its counterparty risk assessment process. Autodesk monitors counterparty risk on at least a quarterly basis and will adjust its exposure to various counterparties as necessary. Autodesk generally enters into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. However, Autodesk does not have any master netting arrangements in place with collateral features. |
Intangible Assets, Net | Intangible Assets, NetIntangible assets include customer relationships, developed technologies, trade names and patents, and other, and the related accumulated amortization. These assets are presented as “Intangible assets, net” in the Consolidated Balance Sheets. The majority of Autodesk’s intangible assets are amortized to expense over the estimated economic life, which ranges from 3 to 15 years. |
Computer Equipment, Software, Furniture and Leasehold Improvements, Net | Computer Equipment, Software, Furniture, and Leasehold Improvements, NetComputer equipment, software, and furniture are depreciated using the straight-line method over the estimated useful lives of the assets, which range from three |
Software Development Costs | Software Development CostsSoftware development costs for external use incurred prior to the establishment of technological feasibility are included in research and development expenses. Autodesk defines establishment of technological feasibility as the completion of a working model. Software development costs incurred subsequent to the establishment of technological feasibility through the period of general market availability of the products are capitalized and generally amortized over a two-year period, if material. |
Cloud Computing Arrangements | Cloud Computing Arrangements Autodesk enters into certain cloud-based software hosting arrangements that are accounted for as service contracts. Costs incurred for these arrangements are capitalized for application development activities, if material, and immediately expensed for preliminary project activities and post-implementation activities. Autodesk amortizes the capitalized development costs straight-line over the fixed, non-cancellable term of the associated hosting arrangement plus any reasonably certain renewal periods. The capitalized costs are included in “Prepaid expenses and other current assets” and “Long-term other assets” on our Consolidated Balance Sheets. Capitalized costs were $190 million and $128 million at January 31, 2023, and January 31, 2022, respectively. Accumulated amortization was $41 million and $17 million at January 31, 2023, and January 31, 2022, respectively. Amortization expense was $24 million, $12 million, and $4 million in fiscal 2023, fiscal 2022, and fiscal 2021, respectively. |
Leases | Leases Autodesk determines if an arrangement is a lease at inception. Operating leases are included in “Operating lease right-of-use assets,” “Operating lease liabilities,” and “Long-term operating lease liabilities” in the Consolidated Balance Sheets. Operating lease right-of-use assets represent Autodesk’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and operating lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The operating lease right-of-use assets also include any lease payments made and are reduced by any lease incentives. Autodesk uses its incremental borrowing rate, if the Company’s leases do not provide an implicit rate, adjusted for local country-specific borrowing rates as applicable, based on the information available at commencement date in determining the present value of lease payments. Options to extend or terminate the lease are considered in determining the lease term when it is reasonably certain that the option will be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Autodesk has lease agreements with lease and non-lease components. Autodesk accounts for the lease and non-lease components as a single lease component. |
Business Combinations | Business CombinationsAutodesk records the tangible and intangible assets acquired and liabilities assumed in a business combination based on their estimated fair values at the date of the respective acquisition, with the exception of contract assets and contract liabilities (i.e., deferred revenue) which are recognized and measured on the acquisition date in accordance with Autodesk’s “Revenue Recognition” policy in Note 1 “Business and Summary of Significant Accounting Policies”. 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. During the measurement period, which may be up to one year from the acquisition date, Autodesk may record adjustments to these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets At least annually or more frequently as circumstances dictate, Autodesk reviews its long-lived assets for impairment whenever impairment indicators exist. Autodesk continually monitors events and changes in circumstances that could indicate the carrying amounts of its long-lived assets may not be recoverable. When such events or changes in circumstances occur, Autodesk assesses the recoverability of these assets. Recoverability is measured by comparison of the carrying amounts of the assets to the future undiscounted cash flow the assets are expected to generate generally using Level 3 inputs. If the long-lived assets are impaired, the impairment to be recognized is equal to the amount by which the carrying value of the assets exceeds its fair market value. Autodesk recorded impairment charges on lease related right-of-use assets related to certain office leases during both the fiscal years ended January 31, 2023 and 2022. See Note 9, “Leases” for further discussion. Impairment charges in the fiscal year ended January 31, 2021 were not material. In addition to the recoverability assessments, Autodesk routinely reviews the remaining estimated useful lives of its long-lived assets. Any reduction in the useful life assumption will result in increased depreciation and amortization expense in the quarter when such determinations are made, as well as in subsequent quarters. |
Goodwill | Goodwill Goodwill consists of the excess of the consideration transferred over the fair value of net assets acquired in business combinations. Autodesk tests goodwill for impairment annually in its fourth fiscal quarter or 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; and 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 the Company’s 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. For the annual impairment test, Autodesk’s market capitalization was substantially in excess of the carrying value of the Company as of January 31, 2023. Accordingly, Autodesk has determined there was no goodwill impairment of our reporting unit during the fiscal year ended January 31, 2023. In addition, Autodesk did not recognize any goodwill impairment losses in fiscal 2022 or 2021. |
Deferred Tax Assets | Deferred Tax Assets Deferred tax assets arise primarily from tax credits, net operating losses, and timing differences for reserves, accrued liabilities, stock options, deferred revenue, purchased technologies, and capitalized intangibles, partially offset by U.S. deferred tax liabilities on acquired intangibles, and valuation allowances against Netherlands, Australia, California, Michigan and U.S. capital loss deferred tax assets. Autodesk performs a quarterly assessment of the recoverability of these net deferred tax assets and believes it will generate sufficient future taxable income in appropriate tax jurisdictions to realize the net deferred tax assets. They are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. Valuation allowances are established when necessary to reduce gross deferred tax assets to the amount that is more likely than not to be realized. |
Stock-Based Compensation Expense | Autodesk measures stock-based compensation cost at the grant date fair value of the award, and recognizes expense ratably over the requisite service period, which is generally the vesting period. Autodesk determines the estimated fair value of stock-based payment awards for stock options and grants of employee stock purchases related to the employee stock purchase plan using the Black-Scholes-Merton (“BSM”) option-pricing model. To determine the grant-date fair value of our stock-based payment awards for restricted stock units and performance stock units, we use the quoted stock price on the date of grant unless the awards are subject to market conditions, in which case we use the Monte Carlo simulation model. The Monte Carlo simulation model utilizes multiple input variables to estimate the probability that market conditions will be achieved. These variables include our expected stock price volatility over the expected term of the award, actual and projected employee stock option exercise behaviors, the risk-free interest rate for the expected term of the award, and expected dividends. The variables used in these models are reviewed on a quarterly basis and adjusted as needed. Share-based compensation cost for restricted stock is measured on the closing fair market value of our common stock on the date of grant. 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 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 companies within the S&P North American Technology Software Index with a market capitalization over $2.0 billion, depending on the award type. Autodesk estimates the expected life of stock-based awards using both exercise behavior and post-vesting termination behavior as well as consideration of outstanding options. The range of expected lives of ESPP awards are based upon the four six-month exercise periods within a 24-month offering period. Autodesk did not pay cash dividends in fiscal 2023, 2022, or 2021 and does not anticipate paying any cash dividends in the foreseeable future. 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 stock-based awards as those forfeitures occur. |
Advertising Expenses | Advertising ExpensesAdvertising costs are expensed as incurred. |
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 during the period. Diluted net income per share is computed using the weighted average shares of common stock outstanding during the period and potentially dilutive common shares, including the effect of restricted stock units, performance share awards, and stock options using the treasury stock method. |
Defined Benefit Pension Plans | Defined Benefit Pension Plans The funded status of Autodesk’s defined benefit pension plans is recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the projected benefit obligation for the fiscal years presented. The projected benefit obligation represents the actuarial present value of benefits expected to be paid upon retirement based on employee services already rendered and estimated future compensation levels. The fair value of plan assets represents the current market value of Autodesk’s cumulative company and participant contributions made to the various plans in effect. Net periodic benefit cost is recorded in the Consolidated Statements of Operations and includes service cost, interest cost, expected return on plan assets, amortization of prior service costs, and gains or losses previously recognized as a component of other comprehensive income (loss). Certain events, such as changes in the employee base, plan amendments, and changes in actuarial assumptions may result in a change in the defined benefit obligation and the corresponding change to other comprehensive loss. Gains and losses and prior service costs not recognized as a component of net periodic benefit cost in the Consolidated Statements of Operations as they arise are recognized as a component of other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income. Those gains and losses and prior service costs are subsequently amortized as a component of net periodic benefit cost over the average remaining service lives of the plan participants using a corridor approach to determine the portion of gain or loss subject to amortization. The measurement of projected benefit obligations and net periodic benefit cost is based on estimates and assumptions that reflect the terms of the plans and use participant-specific information such as compensation, age and years of services, as well as certain assumptions, including estimates of discount rates, expected return of plan assets, rate of compensation increases, interest rates, and mortality rates. |
Accounting Standards | Accounting Standards in Fiscal 2023 With the exception of those discussed below, there have been no recent changes in accounting pronouncements issued by FASB or adopted by the Company during the fiscal year ended January 31, 2023, that are applicable to the Company. Accounting Standards Adopted In March 2020, the FASB issued Accounting Standards Update (“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. In December 2022, the FASB issued ASU No. 2022-06, “Deferral of the Sunset Date of Topic 848” which defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. Autodesk applied the expedients in ASU No. 2020-04 through December 31, 2022. The adoption of ASU No. 2020-04 did not have a material impact on Autodesk’s consolidated financial statements. Recently issued accounting standards not yet adopted In June 2022, the FASB issued ASU No. 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2022-03”), which applies to all equity securities measured at fair value that are subject to contractual sale restrictions. ASU 2022-03 prohibits entities from taking into account contractual restrictions on the sale of equity securities when estimating fair value and introduces required disclosures for such transactions. ASU 2022-03 is effective for Autodesk's fiscal year beginning February 1, 2024 and interim periods within that fiscal year, with early adoption permitted. Autodesk does not believe ASU No. 2022-03 will have a material impact on its consolidated financial statements. |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The effect of the change on the Consolidated Statements of Operations for the fiscal years ended January 31, 2022 and 2021, were as follows: Fiscal Year Ended January 31, 2022 Fiscal Year Ended January 31, 2021 As Reported Effect of Change in Presentation As Adjusted As Reported Effect of Change in Presentation As Adjusted Net revenue: Subscription $ 4,156 $ (96) $ 4,060 $ 3,479 $ (98) $ 3,381 Other 154 96 250 128 98 226 Total net revenue 4,386 — 4,386 3,790 — 3,790 |
Schedule of Long-lived Assets by Geographic Areas | Information regarding Autodesk's long-lived assets by geographic area were as follows: January 31, 2023 2022 Long-lived assets (1): Americas U.S. $ 256 $ 323 Other Americas 13 20 Total Americas 269 343 Europe, Middle East, and Africa 72 92 Asia Pacific 48 32 Total long-lived assets $ 389 $ 467 ____________________ |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable, net, consisted of the following as of January 31: 2023 2022 Trade accounts receivable $ 1,046 $ 780 Less: Allowance for credit losses (5) (5) Product returns reserve (1) (1) Partner programs and other obligations (79) (58) Accounts receivable, net $ 961 $ 716 |
Schedule of Finite-Lived Intangible Assets by Major Class | Intangible assets and related accumulated amortization at January 31, 2023 were as follows: Gross Carrying Amount (1) Accumulated Amortization Net Customer relationships $ 659 $ (402) $ 257 Developed technologies 858 (718) 140 Trade names and patents 116 (106) 10 Total intangible assets $ 1,633 $ (1,226) $ 407 _______________ (1) Includes the effects of foreign currency translation. Intangible assets and related accumulated amortization at January 31, 2022 were as follows: Gross Carrying Amount (1) Accumulated Amortization Net Customer relationships $ 667 $ (375) $ 292 Developed technologies 847 (661) 186 Trade names and patents 116 (100) 16 Total intangible assets $ 1,630 $ (1,136) $ 494 _______________ |
Schedule of Expected Amortization Expense | Expected future amortization expense for intangible assets for each of the fiscal years ended thereafter is as follows: Fiscal Year ended January 31, 2024 $ 80 2025 70 2026 63 2027 53 2028 20 Thereafter 121 Total $ 407 |
Schedule of Property, Plant and Equipment | Computer equipment, software, furniture, leasehold improvements, and the related accumulated depreciation at January 31 were as follows: 2023 2022 Computer hardware, at cost $ 126 $ 137 Computer software, at cost 49 55 Leasehold improvements, land and buildings, at cost 363 351 Furniture and equipment, at cost 94 93 Computer software, hardware, leasehold improvements, furniture, and equipment, at cost 632 636 Less: Accumulated depreciation (488) (474) Computer software, hardware, leasehold improvements, furniture, and equipment, net $ 144 $ 162 |
Schedule of Goodwill | The following table summarizes the changes in the carrying amount of goodwill during the fiscal years ended January 31, 2023 and 2022: January 31, 2023 January 31, 2022 Goodwill, beginning of the year $ 3,753 $ 2,856 Less: accumulated impairment losses, beginning of the year (149) (149) Additions arising from acquisitions during the year 85 936 Effect of foreign currency translation, measurement period adjustments, and other (1) (64) (39) Goodwill, end of the year $ 3,625 $ 3,604 _______________ (1) Measurement period adjustments reflect revisions made to the Company's preliminary determination of estimated fair value of assets and liabilities assumed. |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table summarizes stock-based compensation expense for fiscal 2023, 2022, and 2021, respectively, as follows: Fiscal Year Ended January 31, 2023 2022 2021 Cost of subscription and maintenance revenue $ 34 $ 25 $ 17 Cost of other revenue 12 10 6 Marketing and sales 263 234 178 Research and development 266 220 145 General and administrative 85 70 53 Stock-based compensation expense related to stock awards and Employee Qualified Stock Purchase Plan ("ESPP") purchases 660 559 399 Tax expense (benefit) 13 (53) (42) Stock-based compensation expense related to stock awards and ESPP purchases, net $ 673 $ 506 $ 357 |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award | Autodesk uses the following assumptions to estimate the fair value of stock-based awards: Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended January 31, 2023 January 31, 2022 January 31, 2021 Performance Stock Unit ESPP Performance Stock Unit ESPP Performance Stock Unit ESPP Range of expected volatilities 39.4 - 40.7% 38.3 - 44.9% 36.9% 29.5 - 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 N/A 0.5 - 2.0 Expected dividends —% —% —% —% —% —% Range of risk-free interest rates 1.2 - 1.6% 0.9 - 3.9% 0.1% 0.1 - 0.2% 0.3% 0.1 - 0.5% |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Information regarding the components of Autodesk’s net revenue from contracts with customers by product family, geographic location, sales channel, and product type was as follows: Fiscal Year ended January 31, 2023 2022 2021 Net revenue by product family: Architecture, Engineering and Construction (1) $ 2,278 $ 1,969 $ 1,649 AutoCAD and AutoCAD LT (1) 1,387 1,244 1,099 Manufacturing 978 876 799 Media and Entertainment 291 259 219 Other 71 38 24 Total net revenue $ 5,005 $ 4,386 $ 3,790 Net revenue by geographic area: Americas U.S. $ 1,720 $ 1,457 $ 1,282 Other Americas 372 308 260 Total Americas 2,092 1,765 1,542 Europe, Middle East and Africa 1,906 1,700 1,473 Asia Pacific 1,007 921 775 Total net revenue $ 5,005 $ 4,386 $ 3,790 Net revenue by sales channel: Indirect $ 3,250 $ 2,849 $ 2,600 Direct 1,755 1,537 1,190 Total net revenue $ 5,005 $ 4,386 $ 3,790 Net revenue by product type (2): Design $ 4,264 $ 3,772 $ 3,268 Make 452 364 296 Other 289 250 226 Total net revenue $ 5,005 $ 4,386 $ 3,790 ___________________ (1) During the year ended January 31, 2023, the Company corrected an immaterial classification error and reclassified certain revenue amounts between Architecture, Engineering and Construction and AutoCAD and AutoCAD LT. The year ended January 31, 2022 has been adjusted to conform to the current period presentation. These reclassifications did not impact total net revenue. (2) The prior period amount has been adjusted to conform to the current period presentation for a change in presentation of certain subscription plan offerings. See Note 1, “Business and Summary of Significant Accounting Policies” for further detail. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Schedule of Financial Instruments by Significant Investment Category | The following tables summarize the Company’s financial instruments by significant investment category as of January 31, 2023 and 2022. January 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents (1): Money market funds $ 737 $ — $ — $ 737 Commercial paper 169 — — 169 Certificates of deposit 35 — — 35 U.S. government securities 13 — — 13 Other (2) 12 — — 12 Marketable securities: Short-term Corporate debt securities 44 — 44 Commercial paper 42 — — 42 Asset backed securities 19 — — 19 U.S. government securities 17 — — 17 Other (3) 3 — 3 Long-term Corporate debt securities 45 — — 45 U.S. government securities 35 — — 35 Asset backed securities 13 — — 13 Other (4) 9 — — 9 Mutual funds (5) (6) 81 6 (1) 86 Convertible debt securities (6) 3 1 (2) 2 Strategic investments derivative asset (6) 2 — (2) — Total $ 1,279 $ 7 $ (5) $ 1,281 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of custody cash deposits, agency discount notes, municipal bonds, corporate debt securities, asset-backed securities, and mortgage-backed securities. (3) Consists of mortgage-backed securities, agency mortgage-backed securities, common stock, and agency collateralized mortgage obligations. (4) Consists of agency mortgage-backed securities, agency bonds, agency collateralized mortgage obligations, mortgage-backed securities, and collateralized mortgage obligations. (5) See Note 7, "Deferred Compensation" for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Consolidated Balance Sheets. January 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents (1): Money market funds $ 302 $ — $ — $ 302 Commercial paper 55 — — 55 U.S. government securities 25 — — 25 Custody cash deposit 18 — — 18 Corporate debt securities 18 — — 18 Certificates of deposit 6 — — 6 Other (2) 4 — — 4 Marketable securities: Short-term Commercial paper 103 — — 103 Corporate debt securities 61 — 61 Asset backed securities 26 — — 26 Certificates of deposit 14 — — 14 U.S. government securities 13 — — 13 Municipal bonds 11 — — 11 Common Stock — 4 — 4 Other (3) 4 — 4 Long-term Corporate debt securities 44 — — 44 Other (4) 1 — — 1 Mutual Funds (5) (6) 74 16 (1) 89 Total $ 779 $ 20 $ (1) $ 798 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of sovereign bonds and municipal bonds. (3) Consists of sovereign bonds and supranational bonds. (4) Consists of asset-backed securities. (5) See Note 7, "Deferred Compensation" for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Consolidated Balance Sheets. |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables summarize the Company's financial instruments measured at fair value on a recurring basis by significant investment category as of January 31, 2023 and 2022: January 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents (1): Money market funds $ 737 $ — $ — $ 737 Commercial paper — 169 — 169 Certificates of deposit — 35 — 35 U.S. government securities — 13 — 13 Other (2) 4 8 — 12 Marketable securities: Short-term Corporate debt securities — 44 — 44 Commercial paper — 42 — 42 Asset backed securities — 19 — 19 U.S. government securities — 17 — 17 Other (3) — 3 — 3 Long-term Corporate debt securities — 45 — 45 U.S. government securities — 35 — 35 Asset backed securities — 13 — 13 Other (4) — 9 — 9 Long-term other assets: Mutual funds (5) (6) 86 — — 86 Convertible debt securities (6) — — 2 2 Derivative assets: Derivative contract assets (6) — 14 — 14 Derivative liabilities: Derivative contract liabilities (7) — (31) — (31) Total $ 827 $ 435 $ 2 $ 1,264 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of custody cash deposits, agency discount notes, municipal bonds, corporate debt securities, asset-backed securities, and mortgage-backed securities. (3) Consists of mortgage-backed securities, agency mortgage-backed securities, common stock, and agency collateralized mortgage obligations. (4) Consists of agency mortgage-backed securities, agency bonds, agency collateralized mortgage obligations, mortgage-backed securities, and collateralized mortgage obligations. (5) See Note 7, "Deferred Compensation" for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Consolidated Balance Sheets. (7) Included in “Other accrued liabilities” in the accompanying Consolidated Balance Sheets. January 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents (1): Money market funds $ 302 $ — $ — $ 302 Commercial paper — 55 — 55 U.S. government securities — 25 — 25 Custody cash deposit 18 — — 18 Corporate debt securities — 18 — 18 Certificates of deposit — 6 — 6 Other (2) — 4 — 4 Marketable securities: Short-term Commercial paper — 103 — 103 Corporate debt securities — 61 — 61 Asset backed securities — 26 — 26 Certificates of deposit — 14 — 14 U.S. government securities — 13 — 13 Municipal bonds — 11 — 11 Common Stock 4 — — 4 Other (3) 4 — 4 Long-term Corporate debt securities — 44 — 44 Other (4) — 1 — 1 Long-term other assets: Mutual Funds (5) (6) 89 — — 89 Derivative assets Derivative contract assets (6) — 18 — 18 Derivative liabilities Derivative contract liabilities (7) — (11) — (11) Total $ 413 $ 392 $ — $ 805 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists of sovereign bonds and municipal bonds. (3) Consists of sovereign bonds and supranational bonds. (4) Consists of asset backed securities. (5) See Note 7, "Deferred Compensation" for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Consolidated Balance Sheets. (7) Included in “Other accrued liabilities” in the accompanying Consolidated Balance Sheets. |
Schedule of Investments Classified by Contractual Maturity Date | The following table summarizes the fair values of investments classified as marketable debt securities by contractual maturity date as of January 31, 2023: Fair Value Due within 1 year $ 90 Due in 1 year through 5 years 124 Due in 5 years through 10 years 6 Due after 10 years 7 Total $ 227 |
Schedule of Equity Securities without Readily Determinable Fair Value | Adjustments to the carrying value of our strategic investments in equity securities with no readily determined fair values measured using the measurement alternative are included in Interest and Other Expense, net on the Company’s Consolidated Statements of Operations. These adjustments were as follows: Fiscal Year Ended Cumulative Amount as of 2023 2022 2021 January 31, 2023 Upward adjustments $ 6 $ 7 $ 7 $ 29 Negative adjustments, including impairments (9) (17) (52) (86) Net adjustments $ (3) $ (10) $ (45) $ (57) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | A reconciliation of the change in Autodesk’s Level 3 items for the fiscal year ended January 31, 2023, is as follows: Fair Value Measurements Using Derivative Contract Convertible Debt Securities Total Balances, January 31, 2022 $ — $ — $ — Purchases 2 3 5 Impairments — (2) (2) Loss included in earnings (2) — (2) Gain in other comprehensive (loss) income — 1 1 Balances, January 31, 2023 $ — $ 2 $ 2 |
Equity Compensation (Tables)
Equity Compensation (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Share Activity Disclosure | A summary of restricted stock activity for the fiscal year ended January 31, 2023, was as follows: Unreleased Restricted Stock Units (in thousands) Weighted average grant date fair value per share Unvested restricted stock at January 31, 2022 4,033 $ 251.17 Granted 3,742 198.89 Vested (2,388) 244.14 Canceled/Forfeited (537) 231.88 Performance Adjustment (1) (2) 299.07 Unvested restricted stock at January 31, 2023 4,848 $ 216.20 _______________ (1) Based on Autodesk’s financial results and relative total stockholder return for the fiscal 2022 performance period. The performance stock units were attained at rates ranging from 87% to 113% of the target award. |
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity | A summary of the ESPP activity for the fiscal years ended January 31, 2023, 2022, and 2021 was as follows: Fiscal year ended January 31, 2023 2022 2021 Issued shares (in thousands) 740 851 890 Average price of issued shares $ 166.44 $ 130.13 $ 122.73 Weighted average grant date fair value of awards granted under the ESPP $ 67.77 $ 84.21 $ 55.98 |
Schedule of Employee and Director Stock Options Outstanding | The following table summarizes the number of outstanding options and awards granted to employees and directors, as well as the number of securities remaining available for future issuance under these plans as of January 31, 2023: (a) (b) (c) Plan category Number of securities to be issued upon exercise or vesting of outstanding options and awards (in millions) Weighted-average exercise price of outstanding options Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (in millions) (1) Equity compensation plans approved by security holders 5 $ 21.03 26 Total 5 $ 21.03 26 ____________________ (1) Included in this amount are 5 million securities available for future issuance under Autodesk’s ESPP. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following: Fiscal year ended January 31, 2023 2022 2021 Federal: Current $ 219 $ (1) $ 10 Deferred (222) (5) (740) State: Current 28 2 19 Deferred (19) 1 (58) Foreign: Current 151 83 88 Deferred (34) (12) 20 Income tax provision (benefit) $ 123 $ 68 $ (661) |
Schedule of Differences Between The U.S. Statutory Rate and The Aggregate Income Tax Provision | The differences between the U.S. statutory rate and the aggregate income tax provision are as follows: Fiscal year ended January 31, 2023 2022 2021 Income tax provision at U.S. Federal statutory rate $ 199 $ 119 $ 115 State income tax benefit, net of the U.S. Federal benefit (1) (3) 2 (43) Foreign income taxed at rates different from the U.S. statutory rate (1) 22 (25) (11) Valuation allowance adjustment (1) (38) — (637) Tax effect of non-deductible stock-based compensation (1) 34 32 25 Stock compensation (windfall) / shortfall (1) 10 (43) (35) Research and development tax credit benefit (1) (12) (19) (16) Closure of income tax audits and changes in uncertain tax positions (1) 11 — — Tax effect of officer compensation in excess of $1.0 million 10 7 5 Non-deductible expenses 1 5 2 Global intangible low-taxed income, foreign derived intangible income (106) 24 (65) India withholding tax refund — (44) — Acquisition-related integrations (2) 9 — Other (1) (3) 1 (1) Income tax provision (benefit) $ 123 $ 68 $ (661) _______________ (1) The above comparative for fiscal 2021 has reclassified to conform to the current period presentation. |
Schedule of Components of Deferred Tax Assets and Liabilities | Significant components of Autodesk’s deferred tax assets and liabilities are as follows: January 31, 2023 2022 Stock-based compensation $ 54 $ 56 Research and development tax credit carryforwards 103 235 Foreign tax credit carryforwards — 59 Accrued compensation and benefits 7 6 Other accruals not currently deductible for tax 26 23 Capitalized research and development (1) 340 123 Fixed assets 22 24 Lease liability 92 106 Tax loss carryforwards 38 68 Deferred revenue 653 387 Other 23 23 Total deferred tax assets 1,358 1,110 Less: valuation allowance (148) (188) Net deferred tax assets 1,210 922 Indefinite lived intangibles (109) (95) Purchased technology (1) (26) (34) Right-of-use assets (58) (74) Unremitted earnings of foreign subsidiaries (2) (6) Deferred taxes on foreign earnings (33) (1) Total deferred tax liabilities (228) (210) Net deferred tax assets $ 982 $ 712 _______________ (1) The above comparative for fiscal 2022 has reclassified to conform to the current period presentation. |
Schedule of Unrecognized Tax Benefits Reconciliation | A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits is as follows: Fiscal Year Ended January 31, 2023 2022 2021 Gross unrecognized tax benefits at the beginning of the fiscal year $ 207 $ 198 $ 221 Increases for tax positions of prior years 8 9 13 Decreases for tax positions of prior years (3) (7) (41) Increases for tax positions related to the current year 17 7 6 Decreases relating to settlements with taxing authorities (5) — — Reductions as a result of lapse of the statute of limitations (1) — (1) Gross unrecognized tax benefits at the end of the fiscal year $ 223 $ 207 $ 198 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Business Combination and Asset Acquisition [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 combinations that were completed during the fiscal year ended January 31, 2023: Aggregated Total Developed technologies $ 8 Customer relationships 4 Goodwill 85 Deferred revenue and long-term deferred revenue (2) Long-term deferred income taxes 1 Net tangible assets 1 Total $ 97 |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
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 January 31, 2023, were as follows: Aggregate Principal Amount Fair value 2015 Notes $ 300 $ 298 2017 Notes 500 484 2020 Notes 500 443 2021 Notes 1,000 836 |
Schedule of Future Minimum Payments For Borrowings | The expected future principal payments for all borrowings as of January 31, 2023, were as follows: Fiscal year ending 2024 $ — 2025 — 2026 300 2027 — 2028 500 Thereafter 1,500 Total principal outstanding $ 2,300 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost and Cash Flow Information | The components of lease cost were as follows: Fiscal Year Ended January 31, 2023 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 8 $ 3 $ 36 $ 27 $ 11 $ 85 Variable lease cost 1 — 6 5 2 14 Fiscal Year Ended January 31, 2022 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 8 $ 2 $ 43 $ 30 $ 15 $ 98 Variable lease cost 1 — 5 4 2 12 Fiscal Year Ended January 31, 2021 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 7 $ 2 $ 45 $ 29 $ 18 $ 101 Variable lease cost 1 — 5 4 2 12 Supplemental operating cash flow information related to leases was as follows: Fiscal Year Ended January 31, 2023 Fiscal Year Ended January 31, 2022 Fiscal Year Ended January 31, 2021 Cash paid for operating leases included in operating cash flows (1) $ 115 $ 107 $ 96 Non-cash operating lease liabilities arising from obtaining operating right-of-use assets 48 53 67 _______________ (1) Includes $14 million, $12 million, and $12 million in variable lease payments not included in “Operating lease liabilities” and “Long-term operating lease liabilities” on the Consolidated Balance Sheet for fiscal years ended January 31, 2023, 2022, and 2021, respectively. |
Schedule of Future Minimum Lease Payments | Maturities of operating lease liabilities were as follows: Fiscal year ending 2024 $ 94 2025 78 2026 64 2027 43 2028 34 Thereafter 104 417 Less imputed interest 32 Present value of operating lease liabilities $ 385 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Instruments in Autodesk’s Consolidated Balance Sheets | The fair values of derivative instruments in Autodesk’s Consolidated Balance Sheets were as follows as of January 31, 2023, and January 31, 2022: Balance Sheet Location Fair Value at January 31, 2023 January 31, 2022 Derivative Assets Foreign currency contracts designated as cash flow hedges Prepaid expenses and other current assets $ 9 $ 12 Derivatives not designated as hedging instruments Prepaid expenses and other current assets and long-term other assets 5 6 Total derivative assets $ 14 $ 18 Derivative Liabilities Foreign currency contracts designated as cash flow hedges Other accrued liabilities $ 20 $ 7 Derivatives not designated as hedging instruments Other accrued liabilities 11 4 Total derivative liabilities $ 31 $ 11 |
Schedule of Derivatives Designated as Hedging Instruments on Autodesk’s Condensed Consolidated Statements of Operations | The effects of derivatives designated as hedging instruments on Autodesk’s Consolidated Statements of Operations were as follows for the fiscal years ended January 31, 2023, 2022, and 2021, (amounts presented include any income tax effects): Fiscal Year Ended January 31, 2023 2022 2021 Amount of gain (loss) recognized in accumulated other comprehensive loss, net of tax, (effective portion) $ 40 $ 31 $ (28) Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) Net revenue $ 60 $ (12) $ — Cost of revenue (3) — — Operating expenses (21) (5) 4 Total $ 36 $ (17) $ 4 The amount and location of gain (loss) recognized in net income of derivatives not designated as hedging instruments on Autodesk’s Consolidated Statements of Operations were as follows for the fiscal years ended January 31, 2023, 2022, and 2021, (amounts presented include any income tax effects): Fiscal Year Ended January 31, 2023 2022 2021 Interest and other expense, net $ 7 $ 11 $ (1) |
Schedule 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 Consolidated Statements of Operations where the effects of the hedge are recorded were as follows for the fiscal years ended January 31, 2023 and 2022: Fiscal Year Ended January 31, 2023 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 Consolidated Statements of Operations $ 4,651 $ 65 $ 343 $ 1,745 $ 1,219 $ 532 (Loss) 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 $ 60 $ — $ (3) $ (10) $ (5) $ (6) Fiscal Year Ended January 31, 2022 Net revenue Cost of revenue Operating expenses Subscription revenue (1) 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 Consolidated Statements of Operations $ 4,060 $ 76 $ 299 $ 1,623 $ 1,115 $ 572 (Loss) 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 $ (11) $ (1) $ — $ (3) $ (1) $ (1) ____________________ (1) In the current fiscal year, the Company changed its presentation of certain subscription plan offerings in our Consolidated Statement of Operations. Accordingly, prior period amounts have been reclassified to conform to the current period presentation in all material respects. See Note 1, “Business and Summary of Significant Accounting Policies,” for further detail. |
Interest and Other Expense, n_2
Interest and Other Expense, net (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income, net | Interest and other expense, net, consists of the following: Fiscal Year Ended January 31, 2023 2022 2021 Interest and investment expense, net $ (71) $ (65) $ (51) Gain on foreign currency 15 1 3 Gain (loss) on strategic investments 1 3 (41) Other income 12 8 7 Interest and other expense, net $ (43) $ (53) $ (82) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive (Loss) Income | Accumulated other comprehensive loss, net of taxes, consisted of the following: Net Unrealized Gains (Losses) on Derivative Instruments Net Unrealized Gains (Losses) on Available for Sale Securities Defined Benefit Pension Components Foreign Currency Translation Adjustments Total Balances, January 31, 2021 $ (24) $ 6 $ (21) $ (87) $ (126) Other comprehensive income (loss) before reclassifications 39 12 1 (63) (11) Pre-tax loss reclassified from accumulated other comprehensive income 17 — 5 — 22 Tax effects (8) — (1) — (9) Net current period other comprehensive income (loss) 48 12 5 (63) 2 Balances, January 31, 2022 24 18 (16) (150) (124) Other comprehensive income (loss) before reclassifications 83 — (1) (98) (16) Pre-tax gain reclassified from accumulated other comprehensive income (36) — (3) — (39) Tax effects (7) — 1 — (6) Net current period other comprehensive income (loss) 40 — (3) (98) (61) Balances, January 31, 2023 $ 64 $ 18 $ (19) $ (248) $ (185) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Net Loss Per Share | The following table sets forth the computation of the numerators and denominators used in the basic and diluted net income per share amounts: Fiscal Year Ended January 31, 2023 2022 2021 Numerator: Net income $ 823 $ 497 $ 1,208 Denominator: Weighted average shares for basic net income per share 216 220 219 Effect of dilutive securities 2 2 3 Weighted average shares for dilutive net income per share 218 222 222 Basic net income per share $ 3.81 $ 2.26 $ 5.52 Diluted net income per share $ 3.78 $ 2.24 $ 5.44 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Jan. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Expected Benefit Payments | Estimated benefit payments over the next 10 fiscal years are as follows: Pension Benefits 2024 $ 3 2025 3 2026 3 2027 3 2028 3 2029-2033 17 Total $ 32 |
Business and Summary of Signi_4
Business and Summary of Significant Accounting Policies - Change in presentation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total net revenue | $ 5,005 | $ 4,386 | $ 3,790 |
Subscription | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total net revenue | 4,651 | 4,060 | 3,381 |
Other | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total net revenue | $ 289 | 250 | 226 |
Previously Reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total net revenue | 4,386 | 3,790 | |
Previously Reported | Subscription | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total net revenue | 4,156 | 3,479 | |
Previously Reported | Other | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total net revenue | 154 | 128 | |
Effect of Change in Presentation | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total net revenue | 0 | 0 | |
Effect of Change in Presentation | Subscription | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total net revenue | (96) | (98) | |
Effect of Change in Presentation | Other | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total net revenue | $ 96 | $ 98 |
Business and Summary of Signi_5
Business and Summary of Significant Accounting Policies - Segments (Details) $ in Millions | 12 Months Ended | |
Jan. 31, 2023 USD ($) segment | Jan. 31, 2022 USD ($) | |
Long Lived Assets Held-for-sale [Line Items] | ||
Number of operating segments | segment | 1 | |
Total long-lived assets | $ 389 | $ 467 |
U.S. | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Total long-lived assets | 256 | 323 |
Other Americas | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Total long-lived assets | 13 | 20 |
Americas | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Total long-lived assets | 269 | 343 |
Europe, Middle East, and Africa | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Total long-lived assets | 72 | 92 |
Asia Pacific | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Total long-lived assets | $ 48 | $ 32 |
Business and Summary of Signi_6
Business and Summary of Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
Jan. 31, 2023 category | |
Accounting Policies [Abstract] | |
Number of revenue categories | 3 |
Business and Summary of Signi_7
Business and Summary of Significant Accounting Policies - Derivatives (Details) - Foreign Exchange Contract | 12 Months Ended |
Jan. 31, 2023 | |
Minimum | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative, term of contract | 1 month |
Maximum | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative, term of contract | 12 months |
Business and Summary of Signi_8
Business and Summary of Significant Accounting Policies - Accounts Receivable, Net (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Accounting Policies [Abstract] | ||
Trade accounts receivable | $ 1,046 | $ 780 |
Less: Allowance for credit losses | (5) | (5) |
Product returns reserve | (1) | (1) |
Partner programs and other obligations | (79) | (58) |
Accounts receivable, net | $ 961 | $ 716 |
Business and Summary of Signi_9
Business and Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - USD ($) $ in Billions | 12 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | Nov. 30, 2022 | |
Tech Data | Sales Revenue, Net | Customer Concentration Risk | ||||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||||
Concentration risk, percentage | 37% | 36% | 37% | |
Tech Data | Accounts Receivable | Customer Concentration Risk | ||||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||||
Concentration risk, percentage | 27% | 24% | ||
Ingram Micro | Sales Revenue, Net | Customer Concentration Risk | ||||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||||
Concentration risk, percentage | 9% | 9% | 10% | |
Revolving credit facility | Credit Agreement | ||||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||||
Maximum borrowing capacity | $ 1.5 |
Business and Summary of Sign_10
Business and Summary of Significant Accounting Policies - Intangible Assets and Related Accumulated Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization of intangible assets | $ 40 | $ 40 | $ 38 |
Gross Carrying Amount | 1,633 | 1,630 | |
Accumulated Amortization | (1,226) | (1,136) | |
Total | $ 407 | 494 | |
Weighted average useful life | 9 years 3 months 18 days | ||
Customer Relationships, Trade Names, Patents, and User List | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization of intangible assets | $ 98 | 94 | $ 70 |
Customer relationships | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 659 | 667 | |
Accumulated Amortization | (402) | (375) | |
Total | 257 | 292 | |
Developed technologies | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 858 | 847 | |
Accumulated Amortization | (718) | (661) | |
Total | 140 | 186 | |
Trade names and patents | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Carrying Amount | 116 | 116 | |
Accumulated Amortization | (106) | (100) | |
Total | $ 10 | $ 16 | |
Minimum | Customer Relationships, Trade Names, Patents, and User List | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 3 years | ||
Maximum | Customer Relationships, Trade Names, Patents, and User List | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 15 years |
Business and Summary of Sign_11
Business and Summary of Significant Accounting Policies - Expected Future Amortization Expense for Purchased Technologies, Customer Relationships and Trade Names (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Expected Future Amortization Expense for Purchased Technologies, Customer Relationships and Trade Name [Abstract] | ||
2024 | $ 80 | |
2025 | 70 | |
2026 | 63 | |
2027 | 53 | |
2028 | 20 | |
Thereafter | 121 | |
Total | $ 407 | $ 494 |
Business and Summary of Sign_12
Business and Summary of Significant Accounting Policies - Computer Equipment, Software, Furniture and Leasehold Improvements, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Useful life | 3 years | ||
Depreciation | $ 50 | $ 52 | $ 51 |
Tangible asset impairment charges | 0 | 29 | 0 |
Computer software, hardware, leasehold improvements, furniture, and equipment, at cost | 632 | 636 | |
Less: Accumulated depreciation | (488) | (474) | |
Computer software, hardware, leasehold improvements, furniture, and equipment, net | 144 | 162 | |
Capitalized software development costs | 190 | 128 | |
Amortization | 24 | 12 | $ 4 |
Cloud-based Software Hosting Arrangements | |||
Property, Plant and Equipment [Abstract] | |||
Accumulated amortization | 41 | 17 | |
Computer hardware, at cost | |||
Property, Plant and Equipment [Abstract] | |||
Computer software, hardware, leasehold improvements, furniture, and equipment, at cost | 126 | 137 | |
Computer software, at cost | |||
Property, Plant and Equipment [Abstract] | |||
Computer software, hardware, leasehold improvements, furniture, and equipment, at cost | 49 | 55 | |
Leasehold improvements, land and buildings, at cost | |||
Property, Plant and Equipment [Abstract] | |||
Computer software, hardware, leasehold improvements, furniture, and equipment, at cost | 363 | 351 | |
Furniture and equipment, at cost | |||
Property, Plant and Equipment [Abstract] | |||
Computer software, hardware, leasehold improvements, furniture, and equipment, at cost | $ 94 | $ 93 | |
Software and Software Development Costs | |||
Property, Plant and Equipment [Abstract] | |||
Useful life | 2 years | ||
Minimum | |||
Property, Plant and Equipment [Abstract] | |||
Useful life | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Abstract] | |||
Useful life | 5 years |
Business and Summary of Sign_13
Business and Summary of Significant Accounting Policies - Changes In the Carrying Amount of Goodwill (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Accounting Policies [Abstract] | |||
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Goodwill [Roll Forward] | |||
Goodwill, beginning of period, gross | 3,753,000,000 | 2,856,000,000 | |
Less: accumulated impairment losses, beginning of the year | (149,000,000) | $ (149,000,000) | |
Additions arising from acquisitions during the year | 85,000,000 | 936,000,000 | |
Effect of foreign currency translation, measurement period adjustments, and other | (64,000,000) | (39,000,000) | |
Goodwill, end of the year | $ 3,625,000,000 | $ 3,604,000,000 |
Business and Summary of Sign_14
Business and Summary of Significant Accounting Policies - Stock Based Compensation Expense (Details) | 12 Months Ended | ||
Jan. 31, 2023 USD ($) period | Jan. 31, 2022 USD ($) | Jan. 31, 2021 USD ($) | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense related to stock awards and Employee Qualified Stock Purchase Plan ("ESPP") purchases | $ 660,000,000 | $ 559,000,000 | $ 399,000,000 |
Tax expense (benefit) | 13,000,000 | (53,000,000) | (42,000,000) |
Stock-based compensation expense related to stock awards and ESPP purchases, net | 673,000,000 | 506,000,000 | 357,000,000 |
Market capitalization level of peer group | $ 2,000,000,000 | ||
Number of exercise period | period | 4 | ||
Term of exercise period | 6 months | ||
Term of offering period | 24 months | ||
Cash dividends paid | $ 0 | 0 | 0 |
Dividend yield | 0% | ||
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 Employee Qualified Stock Purchase Plan ("ESPP") purchases | $ 34,000,000 | 25,000,000 | 17,000,000 |
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 Employee Qualified Stock Purchase Plan ("ESPP") purchases | 12,000,000 | 10,000,000 | 6,000,000 |
Marketing and sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense related to stock awards and Employee Qualified Stock Purchase Plan ("ESPP") purchases | 263,000,000 | 234,000,000 | 178,000,000 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense related to stock awards and Employee Qualified Stock Purchase Plan ("ESPP") purchases | 266,000,000 | 220,000,000 | 145,000,000 |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense related to stock awards and Employee Qualified Stock Purchase Plan ("ESPP") purchases | $ 85,000,000 | $ 70,000,000 | $ 53,000,000 |
Business and Summary of Sign_15
Business and Summary of Significant Accounting Policies - Assumption Used to Estimate the Fair Value of Stock-Based Awards (Details) | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividends | 0% | ||
Performance Stock Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of expected volatilities | 36.90% | 50.70% | |
Expected dividends | 0% | 0% | 0% |
Range of risk-free interest rates | 0.10% | 0.30% | |
Performance Stock Unit | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of expected volatilities | 39.40% | ||
Range of risk-free interest rates | 1.20% | ||
Performance Stock Unit | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of expected volatilities | 40.70% | ||
Range of risk-free interest rates | 1.60% | ||
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividends | 0% | 0% | 0% |
ESPP | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of expected volatilities | 38.30% | 29.50% | 39.40% |
Range of expected lives | 6 months | 6 months | 6 months |
Range of risk-free interest rates | 0.90% | 0.10% | 0.10% |
ESPP | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of expected volatilities | 44.90% | 41.80% | 45.80% |
Range of expected lives | 2 years | 2 years | 2 years |
Range of risk-free interest rates | 3.90% | 0.20% | 0.50% |
Business and Summary of Sign_16
Business and Summary of Significant Accounting Policies - Advertising Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Accounting Policies [Abstract] | |||
Advertising Expense | $ 69 | $ 80 | $ 60 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 12 Months Ended | |
Jan. 31, 2023 USD ($) category | Jan. 31, 2022 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Number of revenue categories | category | 3 | |
Remaining performance obligation | $ 5,620 | |
Contract with customer, liability, revenue recognized | $ 2,850 | $ 2,500 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-02-01 | Period One | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligation, expected timing of satisfaction | 3 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-02-01 | Period Two | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 3,520 | |
Performance obligation, expected timing of satisfaction | 12 months | |
Remaining performance obligation percentage | 63% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-02-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 2,100 | |
Performance obligation, expected timing of satisfaction | ||
Remaining performance obligation percentage | 37% | |
Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Subscription payment terms | 30 days | |
EBA payment terms | 30 days | |
Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Subscription payment terms | 45 days | |
EBA payment terms | 60 days |
Revenue Recognition - Contract
Revenue Recognition - Contract Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total net revenue | $ 5,005 | $ 4,386 | $ 3,790 |
Design | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | 4,264 | 3,772 | 3,268 |
Make | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | 452 | 364 | 296 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | 289 | 250 | 226 |
Indirect | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | 3,250 | 2,849 | 2,600 |
Direct | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | 1,755 | 1,537 | 1,190 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | 2,092 | 1,765 | 1,542 |
U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | 1,720 | 1,457 | 1,282 |
Other Americas | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | 372 | 308 | 260 |
Europe, Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | 1,906 | 1,700 | 1,473 |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | 1,007 | 921 | 775 |
Architecture, Engineering and Construction | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | 2,278 | 1,969 | 1,649 |
AutoCAD and AutoCAD LT | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | 1,387 | 1,244 | 1,099 |
Manufacturing | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | 978 | 876 | 799 |
Media and Entertainment | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | 291 | 259 | 219 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | $ 71 | $ 38 | $ 24 |
Financial Instruments - financi
Financial Instruments - financial Instruments by Significant Investment Category (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Debt Securities, Trading and Available-for-Sale [Abstract] | ||
Amortized cost | $ 1,279 | $ 779 |
Gross unrealized gains | 7 | 20 |
Gross unrealized losses | (5) | (1) |
Fair value | 1,281 | 798 |
Money market funds | Cash and Cash Equivalents | ||
Marketable securities: | ||
Amortized Cost | 737 | 302 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 737 | 302 |
Commercial paper | Short-term | ||
Marketable securities: | ||
Fair Value | 42 | 103 |
Commercial paper | Cash and Cash Equivalents | ||
Marketable securities: | ||
Amortized Cost | 169 | 55 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 169 | 55 |
Commercial paper | Short-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 42 | 103 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 42 | 103 |
Certificates of deposit | Short-term | ||
Marketable securities: | ||
Fair Value | 14 | |
Certificates of deposit | Cash and Cash Equivalents | ||
Marketable securities: | ||
Amortized Cost | 35 | 6 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 35 | 6 |
Certificates of deposit | Short-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 14 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 14 | |
U.S. government securities | Short-term | ||
Marketable securities: | ||
Fair Value | 17 | 13 |
U.S. government securities | Long-term | ||
Marketable securities: | ||
Fair Value | 35 | |
U.S. government securities | Cash and Cash Equivalents | ||
Marketable securities: | ||
Amortized Cost | 13 | 25 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 13 | 25 |
U.S. government securities | Short-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 13 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 13 | |
U.S. government securities | Short-term Marketable Securities | Short-term | ||
Marketable securities: | ||
Amortized Cost | 17 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 17 | |
U.S. government securities | Long-term Marketable Securities | Long-term | ||
Marketable securities: | ||
Amortized Cost | 35 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 35 | |
Other | ||
Marketable securities: | ||
Amortized Cost | 4 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | 0 | |
Fair Value | 4 | |
Other | Short-term | ||
Marketable securities: | ||
Fair Value | 3 | 4 |
Other | Long-term | ||
Marketable securities: | ||
Fair Value | 9 | 1 |
Other | Cash and Cash Equivalents | ||
Marketable securities: | ||
Amortized Cost | 12 | 4 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 12 | 4 |
Other | Short-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 3 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | 0 | |
Fair Value | 3 | |
Other | Long-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 9 | 1 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 9 | 1 |
Custody cash deposit | Cash and Cash Equivalents | ||
Marketable securities: | ||
Amortized Cost | 18 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 18 | |
Corporate debt securities | Short-term | ||
Marketable securities: | ||
Fair Value | 44 | 61 |
Corporate debt securities | Long-term | ||
Marketable securities: | ||
Fair Value | 45 | 44 |
Corporate debt securities | Cash and Cash Equivalents | ||
Marketable securities: | ||
Amortized Cost | 18 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 18 | |
Corporate debt securities | Short-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 44 | 61 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | ||
Fair Value | 44 | 61 |
Corporate debt securities | Long-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 45 | 44 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 45 | 44 |
Asset backed securities | Short-term | ||
Marketable securities: | ||
Fair Value | 19 | 26 |
Asset backed securities | Long-term | ||
Marketable securities: | ||
Fair Value | 13 | |
Asset backed securities | Short-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 19 | 26 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 19 | 26 |
Asset backed securities | Long-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 13 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 13 | |
Municipal bonds | Short-term | ||
Marketable securities: | ||
Fair Value | 11 | |
Municipal bonds | Short-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 11 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 11 | |
Common Stock | Short-term | ||
Marketable securities: | ||
Fair Value | 4 | |
Common Stock | Short-term Marketable Securities | ||
Marketable securities: | ||
Amortized Cost | 0 | |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | 0 | |
Fair Value | 4 | |
Mutual funds | ||
Debt Securities, Trading and Available-for-Sale [Abstract] | ||
Amortized Cost | 81 | 74 |
Gross Unrealized Gains | 6 | 16 |
Gross Unrealized Losses | (1) | (1) |
Fair Value | 86 | $ 89 |
Convertible debt securities | ||
Marketable securities: | ||
Amortized Cost | 3 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (2) | |
Fair Value | 2 | |
Debt Securities, Trading and Available-for-Sale [Abstract] | ||
Fair Value | 2 | |
Strategic investments derivative asset | ||
Marketable securities: | ||
Amortized Cost | 2 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (2) | |
Fair Value | $ 0 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Investments Classified by Contractual Maturity Date (Details) $ in Millions | Jan. 31, 2023 USD ($) |
Investments, All Other Investments [Abstract] | |
Due within 1 year | $ 90 |
Due in 1 year through 5 years | 124 |
Due in 5 years through 10 years | 6 |
Due after 10 years | 7 |
Total | $ 227 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Investments, All Other Investments [Abstract] | |||
Securities in continuous unrealized loss position for greater than twelve months | $ 0 | $ 0 | |
Allowance for credit loss | 0 | 0 | |
Securities, writeoff | 0 | 0 | |
Proceeds from sale and maturity of marketable securities | 450,000,000 | 38,000,000 | $ 17,000,000 |
Direct investments in privately held companies | 177,000,000 | 134,000,000 | |
Equity method investment, realized gains on disposal | $ 2,000,000 | $ 8,000,000 | $ 0 |
Financial Instruments - Non-Mar
Financial Instruments - Non-Marketable Equity Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Equity Securities without Readily Determinable Fair Value, Annual Amount [Abstract] | |||
Upward adjustments | $ 6 | $ 7 | $ 7 |
Negative adjustments, including impairments | (9) | (17) | (52) |
Net adjustments | (3) | $ (10) | $ (45) |
Equity Securities without Readily Determinable Fair Value, Impairment Loss, Cumulative Amount [Abstract] | |||
Upward adjustments | 29 | ||
Negative adjustments, including impairments | (86) | ||
Net adjustments | $ (57) |
Financial Instruments - Measure
Financial Instruments - Measured At Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Short-term | ||
Total | $ 1,264 | $ 805 |
Foreign Exchange Contract | ||
Short-term | ||
Derivative contract assets, fair value | 14 | 18 |
Derivative contract liabilities | (31) | (11) |
Money market funds | ||
Cash equivalents | ||
Cash equivalents | 737 | 302 |
Commercial paper | ||
Cash equivalents | ||
Cash equivalents | 169 | 55 |
Commercial paper | Short-term | ||
Short-term | ||
Debt securities, fair value | 42 | 103 |
Certificates of deposit | ||
Cash equivalents | ||
Cash equivalents | 35 | 6 |
Certificates of deposit | Short-term | ||
Short-term | ||
Debt securities, fair value | 14 | |
U.S. government securities | ||
Cash equivalents | ||
Cash equivalents | 13 | 25 |
U.S. government securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 17 | 13 |
U.S. government securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 35 | |
Other | ||
Cash equivalents | ||
Cash equivalents | 12 | 4 |
Short-term | ||
Debt securities, fair value | 4 | |
Other | Short-term | ||
Short-term | ||
Debt securities, fair value | 3 | 4 |
Other | Long-term | ||
Short-term | ||
Debt securities, fair value | 9 | 1 |
Custody cash deposit | ||
Cash equivalents | ||
Cash equivalents | 18 | |
Corporate debt securities | ||
Cash equivalents | ||
Cash equivalents | 18 | |
Corporate debt securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 44 | 61 |
Corporate debt securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 45 | 44 |
Asset backed securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 19 | 26 |
Asset backed securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 13 | |
Municipal bonds | Short-term | ||
Short-term | ||
Debt securities, fair value | 11 | |
Common Stock | Short-term | ||
Short-term | ||
Debt securities, fair value | 4 | |
Mutual funds | ||
Short-term | ||
Mutual funds | 86 | 89 |
Convertible debt securities | ||
Short-term | ||
Debt securities, fair value | 2 | |
Mutual funds | 2 | |
Level 1 | ||
Short-term | ||
Total | 827 | 413 |
Level 1 | Foreign Exchange Contract | ||
Short-term | ||
Derivative contract assets, fair value | 0 | 0 |
Derivative contract liabilities | 0 | 0 |
Level 1 | Money market funds | ||
Cash equivalents | ||
Cash equivalents | 737 | 302 |
Level 1 | Commercial paper | ||
Cash equivalents | ||
Cash equivalents | 0 | 0 |
Level 1 | Commercial paper | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 1 | Certificates of deposit | ||
Cash equivalents | ||
Cash equivalents | 0 | 0 |
Level 1 | Certificates of deposit | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 1 | U.S. government securities | ||
Cash equivalents | ||
Cash equivalents | 0 | 0 |
Level 1 | U.S. government securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 1 | U.S. government securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 1 | Other | ||
Cash equivalents | ||
Cash equivalents | 4 | 0 |
Level 1 | Other | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 1 | Other | Long-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 1 | Custody cash deposit | ||
Cash equivalents | ||
Cash equivalents | 18 | |
Level 1 | Corporate debt securities | ||
Cash equivalents | ||
Cash equivalents | 0 | |
Level 1 | Corporate debt securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 1 | Corporate debt securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 1 | Asset backed securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 1 | Asset backed securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 1 | Municipal bonds | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 1 | Common Stock | Short-term | ||
Short-term | ||
Debt securities, fair value | 4 | |
Level 1 | Mutual funds | ||
Short-term | ||
Mutual funds | 86 | 89 |
Level 1 | Convertible debt securities | ||
Short-term | ||
Mutual funds | 0 | |
Level 2 | ||
Short-term | ||
Total | 435 | 392 |
Level 2 | Foreign Exchange Contract | ||
Short-term | ||
Derivative contract assets, fair value | 14 | 18 |
Derivative contract liabilities | (31) | (11) |
Level 2 | Money market funds | ||
Cash equivalents | ||
Cash equivalents | 0 | 0 |
Level 2 | Commercial paper | ||
Cash equivalents | ||
Cash equivalents | 169 | 55 |
Level 2 | Commercial paper | Short-term | ||
Short-term | ||
Debt securities, fair value | 42 | 103 |
Level 2 | Certificates of deposit | ||
Cash equivalents | ||
Cash equivalents | 35 | 6 |
Level 2 | Certificates of deposit | Short-term | ||
Short-term | ||
Debt securities, fair value | 14 | |
Level 2 | U.S. government securities | ||
Cash equivalents | ||
Cash equivalents | 13 | 25 |
Level 2 | U.S. government securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 17 | 13 |
Level 2 | U.S. government securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 35 | |
Level 2 | Other | ||
Cash equivalents | ||
Cash equivalents | 8 | 4 |
Level 2 | Other | Short-term | ||
Short-term | ||
Debt securities, fair value | 3 | 4 |
Level 2 | Other | Long-term | ||
Short-term | ||
Debt securities, fair value | 9 | 1 |
Level 2 | Custody cash deposit | ||
Cash equivalents | ||
Cash equivalents | 0 | |
Level 2 | Corporate debt securities | ||
Cash equivalents | ||
Cash equivalents | 18 | |
Level 2 | Corporate debt securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 44 | 61 |
Level 2 | Corporate debt securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 45 | 44 |
Level 2 | Asset backed securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 19 | 26 |
Level 2 | Asset backed securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 13 | |
Level 2 | Municipal bonds | Short-term | ||
Short-term | ||
Debt securities, fair value | 11 | |
Level 2 | Common Stock | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 2 | Mutual funds | ||
Short-term | ||
Mutual funds | 0 | 0 |
Level 2 | Convertible debt securities | ||
Short-term | ||
Mutual funds | 0 | |
Level 3 | ||
Short-term | ||
Total | 2 | 0 |
Level 3 | Foreign Exchange Contract | ||
Short-term | ||
Derivative contract assets, fair value | 0 | 0 |
Derivative contract liabilities | 0 | 0 |
Level 3 | Money market funds | ||
Cash equivalents | ||
Cash equivalents | 0 | 0 |
Level 3 | Commercial paper | ||
Cash equivalents | ||
Cash equivalents | 0 | 0 |
Level 3 | Commercial paper | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 3 | Certificates of deposit | ||
Cash equivalents | ||
Cash equivalents | 0 | 0 |
Level 3 | Certificates of deposit | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 3 | U.S. government securities | ||
Cash equivalents | ||
Cash equivalents | 0 | 0 |
Level 3 | U.S. government securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 3 | U.S. government securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 3 | Other | ||
Cash equivalents | ||
Cash equivalents | 0 | 0 |
Level 3 | Other | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 3 | Other | Long-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 3 | Custody cash deposit | ||
Cash equivalents | ||
Cash equivalents | 0 | |
Level 3 | Corporate debt securities | ||
Cash equivalents | ||
Cash equivalents | 0 | |
Level 3 | Corporate debt securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 3 | Corporate debt securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 3 | Asset backed securities | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | 0 |
Level 3 | Asset backed securities | Long-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 3 | Municipal bonds | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 3 | Common Stock | Short-term | ||
Short-term | ||
Debt securities, fair value | 0 | |
Level 3 | Mutual funds | ||
Short-term | ||
Mutual funds | 0 | $ 0 |
Level 3 | Convertible debt securities | ||
Short-term | ||
Mutual funds | $ 2 |
Financial Instruments - Reconci
Financial Instruments - Reconciliation of the Change in Level 3 Items (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2023 USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balances, January 31, 2022 | $ 0 |
Purchases | 5 |
Impairments | (2) |
Loss included in earnings | (2) |
Gain in other comprehensive (loss) income | 1 |
Balances, January 31, 2023 | 2 |
Derivative Contract | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balances, January 31, 2022 | 0 |
Purchases | 2 |
Impairments | 0 |
Loss included in earnings | (2) |
Gain in other comprehensive (loss) income | 0 |
Balances, January 31, 2023 | 0 |
Convertible Debt Securities | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balances, January 31, 2022 | 0 |
Purchases | 3 |
Impairments | (2) |
Loss included in earnings | 0 |
Gain in other comprehensive (loss) income | 1 |
Balances, January 31, 2023 | $ 2 |
Equity Compensation - Narrative
Equity Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
May 11, 2021 USD ($) trading_day | Mar. 31, 2021 shares | Nov. 23, 2020 USD ($) shares | Jan. 31, 2023 USD ($) trading_day period $ / shares shares | Jan. 31, 2022 USD ($) $ / shares shares | Jan. 31, 2021 USD ($) $ / shares shares | |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Number of securities remaining available for future issuance under equity compensation plans (in shares) | 26,000,000 | |||||
Settlement of liability-classified restricted common shares | $ | $ 11 | $ 3 | $ 29 | |||
Fair value assumptions, expected volatility, market capitalization | $ | $ 2,000 | |||||
Shares issued in period (in shares) | 13,000 | |||||
Share-based compensation expense | $ | $ 660 | 559 | 399 | |||
Number of exercise period | period | 4 | |||||
Term of exercise period | 6 months | |||||
Term of offering period | 24 months | |||||
Spacemaker | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Vesting period | 3 years | |||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | 147,000 | |||||
Share-based compensation expense | $ | $ 2 | |||||
Storm UK Holdco Limited | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | 9,000 | |||||
Upchain | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Value of shares authorized | $ | $ 13 | |||||
Shares issued in period (in shares) | 24,000 | |||||
Value of shares issued | $ | $ 5 | |||||
Volume Weighted Average Closing price, valuation period | trading_day | 90 | 90 | ||||
Remaining shares estimated to be issued (in shares) | 39,000 | |||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | 39,000 | |||||
Share-based compensation expense | $ | 3 | |||||
Upchain | Share-based Compensation Award, Tranche One | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Awards vesting percentage (in percentage) | 40% | |||||
Upchain | Share-based Compensation Award, Tranche Two | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Awards vesting percentage (in percentage) | 60% | |||||
Series of Individually Immaterial Business Acquisitions | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Shares issued in period (in shares) | 18,000 | |||||
Value of shares issued | $ | $ 3 | |||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | 34,000 | |||||
Fiscal 2023 Acquisition | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Share based compensation expense, restricted stock units | $ | $ 5 | |||||
Value of shares authorized | $ | $ 5 | |||||
Volume Weighted Average Closing price, valuation period | trading_day | 90 | |||||
Remaining shares estimated to be issued (in shares) | 23,000 | |||||
Share-based compensation expense | $ | $ 2 | |||||
Fiscal 2023 Acquisition | Share-based Compensation Award, Tranche One | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Awards vesting percentage (in percentage) | 40% | |||||
Fiscal 2023 Acquisition | Share-based Compensation Award, Tranche Two | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Awards vesting percentage (in percentage) | 60% | |||||
Other Fiscal 2022 Acquisitions | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Value of shares authorized | $ | 11 | |||||
Restricted Stock Units (RSUs) | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Granted (in shares) | 3,000,000 | |||||
Share based compensation expense, restricted stock units | $ | $ 510 | $ 425 | $ 309 | |||
Total compensation cost related to non-vested awards not yet recognized | $ | $ 722 | |||||
Total compensation cost related to non-vested awards not yet recognized, weighted average period of recognition | 1 year 10 months 6 days | |||||
Number of awards granted but unreleased | 4,000,000 | |||||
Restricted Stock Units (RSUs) | Maximum | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Vesting period | 3 years | |||||
Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Granted (in dollars per share) | $ / shares | $ 198.89 | $ 288.13 | $ 224.20 | |||
Fair value of units vested in period | $ | $ 490 | $ 620 | $ 503 | |||
Granted (in shares) | 3,742,000 | |||||
Number of awards granted but unreleased | 4,848,000 | 4,033,000 | ||||
Performance Stock Unit | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Vesting period | 3 years | |||||
Granted (in shares) | 239,000 | |||||
Share based compensation expense, restricted stock units | $ | $ 54 | $ 68 | 31 | |||
Total compensation cost related to non-vested awards not yet recognized | $ | $ 8 | |||||
Total compensation cost related to non-vested awards not yet recognized, weighted average period of recognition | 8 months 15 days | |||||
Number of awards granted but unreleased | 461,000 | |||||
Performance Stock Unit | Share-based Compensation Award, Tranche One | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Awards vesting percentage (in percentage) | 33.33% | |||||
Performance Stock Unit | Share-based Compensation Award, Tranche Two | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Awards vesting percentage (in percentage) | 33.33% | |||||
Performance Stock Unit | Share-Based Payment Arrangement, Tranche Three | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Awards vesting percentage (in percentage) | 33.33% | |||||
Performance Stock Unit | Management | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Vesting period | 1 year | |||||
Granted (in shares) | 115,000 | |||||
Common Stock | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Shares issued in period (in shares) | 8,000 | |||||
Value of shares issued | $ | $ 3 | $ 3 | ||||
Share-based compensation expense | $ | $ 32 | $ 17 | 2 | |||
Common Stock | Spacemaker | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Value of shares authorized | $ | $ 5 | |||||
Restricted Stock | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Vesting period | 2 years | |||||
Restricted Stock | Spacemaker | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Vesting period | 3 years | |||||
Shares issued in period (in shares) | 74,000 | |||||
Restricted Stock | Storm UK Holdco Limited | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Shares issued in period (in shares) | 9,000 | 9,000 | ||||
Restricted Stock | Series of Individually Immaterial Business Acquisitions | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Shares issued in period (in shares) | 13,000 | |||||
Restricted Stock | Fiscal 2023 Acquisition | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Vesting period | 2 years | |||||
Shares issued in period (in shares) | 40,000 | |||||
Equity Incentive Plan 2022 | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Shares of common stock reserved for issuance (in shares) | 23,000,000 | |||||
Shares granted counted against shares authorized ratio | 2.08 | |||||
Shares available for grant (in shares) | 21,000,000 | |||||
Equity Incentive Plan 2022 | Restricted Stock Units (RSUs) | Minimum | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Vesting period | 1 year | |||||
Equity Incentive Plan 2022 | Restricted Stock Units (RSUs) | Maximum | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Vesting period | 3 years | |||||
Equity Incentive Plan 2022 | Restricted Stock Units And Restricted Stock Awards | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Grants in period, net of forfeitures (in shares) | 2,000,000 | |||||
BuildingConnected 2012 Plan | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Vesting period | 4 years | |||||
Options outstanding (in shares) | 4,000 | |||||
Share based payment award options expiration term (in years) | 10 years | |||||
ESPP | ||||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||||
Number of securities remaining available for future issuance under equity compensation plans (in shares) | 5,000,000 | |||||
Percentage of compensation that eligible employees can use to purchase common stock, maximum | 15% | |||||
Percentage of fair market value eligible employees can purchase common stock, minimum | 85% | |||||
Number of exercise period | period | 4 | |||||
Term of exercise period | 6 months | |||||
Term of offering period | 24 months | |||||
Employee service share based compensation recognized compensation costs on nonvested restricted shares | $ | $ 62 | $ 37 | $ 40 | |||
Plan modification term | 24 months | |||||
Plan modification | $ | $ 21 |
Equity Compensation - Summary o
Equity Compensation - Summary of Restricted Stock Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) | |||
Unreleased Restricted Stock Units (in thousands) | |||
Unvested restricted stock, beginning balance (in shares) | 4,033 | ||
Granted (in shares) | 3,742 | ||
Vested (in shares) | (2,388) | ||
Canceled/Forfeited (in shares) | (537) | ||
Performance adjustment (in shares) | (2) | ||
Unvested restricted stock, ending balance (in shares) | 4,848 | 4,033 | |
Weighted average grant date fair value per share | |||
Unvested restricted stock, beginning balance (in dollars per share) | $ 251.17 | ||
Granted (in dollars per share) | 198.89 | $ 288.13 | $ 224.20 |
Vested (in dollars per share) | 244.14 | ||
Canceled/Forfeited (in dollars per share) | 231.88 | ||
Performance adjustment (in dollars per share) | 299.07 | ||
Unvested restricted stock, ending balance (in dollars per share) | $ 216.20 | $ 251.17 | |
Performance Stock Unit | |||
Unreleased Restricted Stock Units (in thousands) | |||
Granted (in shares) | 239 | ||
Unvested restricted stock, ending balance (in shares) | 461 | ||
Performance Stock Unit | Minimum | |||
Weighted average grant date fair value per share | |||
Performance shares payout | 87% | ||
Performance Stock Unit | Maximum | |||
Weighted average grant date fair value per share | |||
Performance shares payout | 113% |
Equity Compensation - ESPP Acti
Equity Compensation - ESPP Activity (Details) - ESPP - ESPP - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Issued shares (in shares) | 740 | 851 | 890 |
Average price of issued shares (in dollars per share) | $ 166.44 | $ 130.13 | $ 122.73 |
Weighted average grant date fair value of awards granted under the ESPP (in dollars per share) | $ 67.77 | $ 84.21 | $ 55.98 |
Equity Compensation - Equity Co
Equity Compensation - Equity Compensation Plan Information (Details) shares in Millions | Jan. 31, 2023 $ / shares shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of securities to be issued upon exercise or vesting of outstanding options and awards (in shares) | 5 |
Weighted-average exercise price of outstanding options (in dollars per share) | $ / shares | $ 21.03 |
Number of securities remaining available for future issuance under equity compensation plans (in shares) | 26 |
Equity Compensation Plans Approved by Security Holders | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of securities to be issued upon exercise or vesting of outstanding options and awards (in shares) | 5 |
Weighted-average exercise price of outstanding options (in dollars per share) | $ / shares | $ 21.03 |
Number of securities remaining available for future issuance under equity compensation plans (in shares) | 26 |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of securities remaining available for future issuance under equity compensation plans (in shares) | 5 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Federal: | |||
Current | $ 219 | $ (1) | $ 10 |
Deferred | (222) | (5) | (740) |
State: | |||
Current | 28 | 2 | 19 |
Deferred | (19) | 1 | (58) |
Foreign: | |||
Current | 151 | 83 | 88 |
Deferred | (34) | (12) | 20 |
Income tax provision (benefit) | $ 123 | $ 68 | $ (661) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Income Taxes [Line Items] | ||||
Foreign pretax income (loss) | $ 755 | $ 560 | $ 528 | |
Valuation allowance increase (decrease) | (40) | 2 | (697) | |
Deferred tax assets, valuation allowance | 148 | 188 | ||
Gross unrecognized tax benefits | 223 | 207 | 198 | $ 221 |
Unrecognized tax benefits that would reduce valuation allowance if recognized | 38 | |||
Amount of gross unrecognized tax benefits that would impact the effective tax rate | 185 | |||
Decrease in unrecognized tax benefits in the next twelve months for statute lapse | 4 | |||
Unrecognized tax benefits, penalties and interest accrued | 5 | 7 | 5 | |
Income tax expense from penalties and interest | (2) | 2 | $ 2 | |
Foreign Country | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | 100 | |||
Tax credit carryforward | 1 | |||
Foreign Country | Canada | ||||
Income Taxes [Line Items] | ||||
Valuation allowance increase (decrease) | (38) | |||
Foreign Country | Canada | Research Tax Credit Carryforward | ||||
Income Taxes [Line Items] | ||||
Tax credit carryforward | 46 | |||
Foreign Country | Netherlands And Australia | ||||
Income Taxes [Line Items] | ||||
Deferred tax assets, valuation allowance | 23 | |||
Foreign Country | NETHERLANDS | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | 43 | |||
Foreign Country | Norway | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | 51 | |||
Domestic Country | ||||
Income Taxes [Line Items] | ||||
Valuation allowance increase (decrease) | $ (679) | |||
Operating loss carryforwards | 14 | |||
State and Local Jurisdiction | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | 355 | |||
State and Local Jurisdiction | California | Research Tax Credit Carryforward | ||||
Income Taxes [Line Items] | ||||
Tax credit carryforward | $ 115 |
Income Taxes - Differences betw
Income Taxes - Differences between the U.S. statutory rate and the aggregate income tax provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision at U.S. Federal statutory rate | $ 199 | $ 119 | $ 115 |
State income tax benefit, net of the U.S. Federal benefit | (3) | 2 | (43) |
Foreign income taxed at rates different from the U.S. statutory rate | 22 | (25) | (11) |
Valuation allowance adjustment | (38) | 0 | (637) |
Tax effect of non-deductible stock-based compensation | 34 | 32 | 25 |
Stock compensation (windfall) / shortfall | 10 | (43) | (35) |
Research and development tax credit benefit | (12) | (19) | (16) |
Closure of income tax audits and changes in uncertain tax positions | 11 | 0 | 0 |
Tax effect of officer compensation in excess of $1.0 million | 10 | 7 | 5 |
Non-deductible expenses | 1 | 5 | 2 |
Global intangible low-taxed income, foreign derived intangible income | (106) | 24 | (65) |
India withholding tax refund | 0 | (44) | 0 |
Acquisition-related integrations | (2) | 9 | 0 |
Other | (3) | 1 | (1) |
Income tax provision (benefit) | 123 | $ 68 | $ (661) |
First $1M of officer compensation | $ 1 |
Income Taxes - Components Of De
Income Taxes - Components Of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Stock-based compensation | $ 54 | $ 56 |
Research and development tax credit carryforwards | 103 | 235 |
Foreign tax credit carryforwards | 0 | 59 |
Accrued compensation and benefits | 7 | 6 |
Other accruals not currently deductible for tax | 26 | 23 |
Capitalized research and development | 340 | 123 |
Fixed assets | 22 | 24 |
Lease liability | 92 | 106 |
Tax loss carryforwards | 38 | 68 |
Deferred revenue | 653 | 387 |
Other | 23 | 23 |
Total deferred tax assets | 1,358 | 1,110 |
Less: valuation allowance | (148) | (188) |
Net deferred tax assets | 1,210 | 922 |
Indefinite lived intangibles | (109) | (95) |
Purchased technology | (26) | (34) |
Right-of-use assets | (58) | (74) |
Unremitted earnings of foreign subsidiaries | (2) | (6) |
Deferred taxes on foreign earnings | (33) | (1) |
Total deferred tax liabilities | (228) | (210) |
Net deferred tax assets | $ 982 | $ 712 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits at the beginning of the fiscal year | $ 207 | $ 198 | $ 221 |
Increases for tax positions of prior years | 8 | 9 | 13 |
Decreases for tax positions of prior years | (3) | (7) | (41) |
Increases for tax positions related to the current year | 17 | 7 | 6 |
Decreases relating to settlements with taxing authorities | (5) | 0 | 0 |
Reductions as a result of lapse of the statute of limitations | (1) | 0 | (1) |
Gross unrecognized tax benefits at the end of the fiscal year | $ 223 | $ 207 | $ 198 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) shares in Thousands | 12 Months Ended | |||||
May 11, 2021 USD ($) trading_day | Mar. 31, 2021 USD ($) shares | Nov. 23, 2020 USD ($) shares | Jan. 31, 2023 USD ($) trading_day businessCombination shares | Jan. 31, 2022 USD ($) business_combination shares | Jan. 31, 2021 USD ($) business_combination shares | |
Business Acquisition [Line Items] | ||||||
Shares issued in period (in shares) | shares | 13 | |||||
Consideration transferred, equity interests | $ 10,000,000 | $ 6,000,000 | $ 38,000,000 | |||
Share-based compensation expense | 660,000,000 | $ 559,000,000 | $ 399,000,000 | |||
Goodwill deductible for tax purposes | $ 0 | |||||
Restricted Stock | ||||||
Business Acquisition [Line Items] | ||||||
Vesting period | 2 years | |||||
Fiscal 2023 Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Number of businesses combinations | businessCombination | 2 | |||||
Consideration transferred | $ 114,000,000 | |||||
Payments to acquire businesses | 96,000,000 | |||||
Consideration transferred, equity interests | 10,000,000 | |||||
Business combination, consideration transferred, other | 97,000,000 | |||||
Share based compensation expense, liability-classified awards | 5,000,000 | |||||
Share-based compensation expense | $ 2,000,000 | |||||
Volume Weighted Average Closing price, valuation period | trading_day | 90 | |||||
Value of shares authorized | $ 5,000,000 | |||||
Fiscal 2023 Acquisition | Share-based Compensation Award, Tranche One | ||||||
Business Acquisition [Line Items] | ||||||
Awards vesting percentage (in percentage) | 40% | |||||
Fiscal 2023 Acquisition | Share-based Compensation Award, Tranche Two | ||||||
Business Acquisition [Line Items] | ||||||
Awards vesting percentage (in percentage) | 60% | |||||
Fiscal 2023 Acquisition | Prepaid expenses and other current assets | ||||||
Business Acquisition [Line Items] | ||||||
Share based compensation expense, liability-classified awards | $ 10,000,000 | |||||
Fiscal 2023 Acquisition | Certain Employees of Acquiree | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred, equity interests | $ 5,000,000 | |||||
Fiscal 2023 Acquisition | Restricted Stock | ||||||
Business Acquisition [Line Items] | ||||||
Shares issued in period (in shares) | shares | 40 | |||||
Vesting period | 2 years | |||||
Upchain | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred | $ 140,000,000 | |||||
Payments to acquire businesses | 127,000,000 | |||||
Shares issued in period (in shares) | shares | 24 | |||||
Consideration transferred, equity interests | 13,000,000 | |||||
Business combination, consideration transferred, other | 124,000,000 | |||||
Business combination, contingent consideration, liability | $ 13,000,000 | |||||
Share-based compensation expense | $ 3,000,000 | |||||
Volume Weighted Average Closing price, valuation period | trading_day | 90 | 90 | ||||
Goodwill deductible for tax purposes | $ 101,000,000 | |||||
Business acquisition, percentage of voting interests acquired | 100% | |||||
Value of shares authorized | $ 13,000,000 | |||||
Value of shares issued | $ 5,000,000 | |||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | shares | 39 | |||||
Upchain | Share-based Compensation Award, Tranche One | ||||||
Business Acquisition [Line Items] | ||||||
Awards vesting percentage (in percentage) | 40% | |||||
Upchain | Share-based Compensation Award, Tranche Two | ||||||
Business Acquisition [Line Items] | ||||||
Awards vesting percentage (in percentage) | 60% | |||||
Storm UK Holdco Limited | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred | $ 1,038,000,000 | |||||
Payments to acquire businesses | 1,035,000,000 | |||||
Consideration transferred, equity interests | 3,000,000 | |||||
Business combination, consideration transferred, other | 1,035,000,000 | |||||
Goodwill deductible for tax purposes | $ 273,000,000 | |||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | shares | 9 | |||||
Business combination, contingent consideration, asset | $ 3,000,000 | |||||
Percentage of restricted common stock released | 50% | |||||
Storm UK Holdco Limited | Restricted Stock | ||||||
Business Acquisition [Line Items] | ||||||
Shares issued in period (in shares) | shares | 9 | 9 | ||||
Series of Individually Immaterial Business Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Number of businesses combinations | business_combination | 4 | 2 | ||||
Consideration transferred | $ 113,000,000 | $ 45,000,000 | ||||
Payments to acquire businesses | 99,000,000 | |||||
Shares issued in period (in shares) | shares | 18 | |||||
Consideration transferred, equity interests | 11,000,000 | |||||
Business combination, consideration transferred, other | 99,000,000 | |||||
Goodwill deductible for tax purposes | $ 72,000,000 | $ 195,000,000 | ||||
Value of shares issued | $ 3,000,000 | |||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | shares | 34 | |||||
Series of Individually Immaterial Business Acquisitions | Restricted Stock | ||||||
Business Acquisition [Line Items] | ||||||
Shares issued in period (in shares) | shares | 13 | |||||
Consideration transferred, equity interests | $ 3,000,000 | |||||
Spacemaker | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred | $ 252,000,000 | |||||
Payments to acquire businesses | 214,000,000 | |||||
Consideration transferred, equity interests | 38,000,000 | |||||
Business combination, consideration transferred, other | 231,000,000 | |||||
Share-based compensation expense | $ 2,000,000 | |||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | shares | 147 | |||||
Business combination, contingent consideration, asset | $ 19,000,000 | |||||
Vesting period | 3 years | |||||
Spacemaker | Restricted Stock | ||||||
Business Acquisition [Line Items] | ||||||
Shares issued in period (in shares) | shares | 74 | |||||
Vesting period | 3 years |
Acquisitions - Summary of Fair
Acquisitions - Summary of Fair Value of Assets Acquired and Liabilities Assumed by Major Class (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Business Acquisition [Line Items] | ||
Goodwill | $ 3,625 | $ 3,604 |
Fiscal 2023 Acquisition | ||
Business Acquisition [Line Items] | ||
Goodwill | 85 | |
Deferred revenue and long-term deferred revenue | (2) | |
Long-term deferred income taxes | 1 | |
Net tangible assets | 1 | |
Total | 97 | |
Fiscal 2023 Acquisition | Developed technologies | ||
Business Acquisition [Line Items] | ||
Finite-lived intangibles | 8 | |
Fiscal 2023 Acquisition | Customer relationships | ||
Business Acquisition [Line Items] | ||
Finite-lived intangibles | $ 4 |
Deferred Compensation (Details)
Deferred Compensation (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Costs to obtain a contract | $ 133,000,000 | $ 139,000,000 | |
Amortization of costs to obtain a contract | 138,000,000 | 118,000,000 | $ 97,000,000 |
Impairment loss | 0 | 0 | $ 0 |
Rabbi Trust | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred compensation liability | 86,000,000 | 89,000,000 | |
Deferred compensation liability, current | 7,000,000 | 7,000,000 | |
Deferred compensation liability, non-current | $ 79,000,000 | $ 82,000,000 |
Borrowing Arrangements - Narrat
Borrowing Arrangements - Narrative (Details) | 1 Months Ended | |||||||
Dec. 15, 2022 USD ($) | Nov. 30, 2022 USD ($) | Oct. 31, 2021 USD ($) | Jan. 31, 2020 USD ($) | Jun. 30, 2017 USD ($) | Jun. 30, 2015 USD ($) | Dec. 31, 2012 USD ($) | Jan. 31, 2023 USD ($) | |
Senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt redemption percentage of principle amount | 101% | |||||||
2021 Notes | Senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 1,000,000,000 | $ 1,000,000,000 | ||||||
Stated interest rate | 2.40% | |||||||
Unamortized discount | $ 3,000,000 | |||||||
Debt issuance costs | 9,000,000 | |||||||
Proceeds from debt, net of issuance costs | $ 988,000,000 | |||||||
2020 Notes | Senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 500,000,000 | 500,000,000 | ||||||
Stated interest rate | 2.85% | |||||||
Unamortized discount | $ 1,000,000 | |||||||
Debt issuance costs | 5,000,000 | |||||||
Proceeds from debt, net of issuance costs | 494,000,000 | |||||||
2015 Notes | Senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 300,000,000 | 300,000,000 | ||||||
Stated interest rate | 4.375% | |||||||
Unamortized discount | $ 1,000,000 | |||||||
Debt issuance costs | 3,000,000 | |||||||
Proceeds from debt, net of issuance costs | $ 296,000,000 | |||||||
Repayments of debt | $ 450,000,000 | |||||||
2017 Notes | Senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 500,000,000 | 500,000,000 | ||||||
Stated interest rate | 3.50% | |||||||
Unamortized discount | $ 3,000,000 | |||||||
Debt issuance costs | 5,000,000 | |||||||
Proceeds from debt, net of issuance costs | 492,000,000 | |||||||
Senior Notes due 2017 | Senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of debt | $ 400,000,000 | |||||||
2012 Notes | Senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 350,000,000 | |||||||
Stated interest rate | 3.60% | |||||||
Debt issuance costs | $ 3,000,000 | |||||||
Proceeds from debt, net of issuance costs | $ 347,000,000 | |||||||
Repayments of debt | $ 350,000,000 | |||||||
Revolving credit facility | Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 1,500,000,000 | |||||||
Line of credit facility, increase limit | $ 2,000,000,000 | |||||||
Debt covenant, interest coverage ratio, minimum | 3.50 | |||||||
Debt covenant, leverage ratio, maximum | 4 | |||||||
Line of credit facility, outstanding borrowings | $ 0 | |||||||
Revolving credit facility | Credit Agreement | Minimum | Base rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0% | |||||||
Revolving credit facility | Credit Agreement | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.785% | |||||||
Revolving credit facility | Credit Agreement | Maximum | Base rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.375% | |||||||
Revolving credit facility | Credit Agreement | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.375% |
Borrowing Arrangements - Fair V
Borrowing Arrangements - Fair Value of Market Price (Details) - Senior Notes - USD ($) | Jan. 31, 2023 | Oct. 31, 2021 | Jan. 31, 2020 | Jun. 30, 2017 | Jun. 30, 2015 |
2015 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate Principal Amount | $ 300,000,000 | $ 300,000,000 | |||
Fair value | 298,000,000 | ||||
2017 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate Principal Amount | 500,000,000 | $ 500,000,000 | |||
Fair value | 484,000,000 | ||||
2020 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate Principal Amount | 500,000,000 | $ 500,000,000 | |||
Fair value | 443,000,000 | ||||
2021 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate Principal Amount | 1,000,000,000 | $ 1,000,000,000 | |||
Fair value | $ 836,000,000 |
Borrowing Arrangements - Future
Borrowing Arrangements - Future Minimum Payments For Borrowings (Details) $ in Millions | Jan. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 0 |
2025 | 0 |
2026 | 300 |
2027 | 0 |
2028 | 500 |
Thereafter | 1,500 |
Total principal outstanding | $ 2,300 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Lease-related asset impairments | $ 29,000,000 | $ 75,000,000 | $ 0 |
Weighted average remaining lease term | 6 years 6 months | 6 years 10 months 24 days | |
Weighted average discount rate | 2.60% | 2.46% | |
Public income remaining lease term | 9 years 1 month 6 days | ||
Sublease income | $ 5,000,000 | $ 0 | $ 0 |
Sublease income payments | 86,000,000 | ||
Sublease income payments, expect to receive, remaining fiscal 2024 through fiscal 2028 | 47,000,000 | ||
Sublease income payments, expect to receive, thereafter | 39,000,000 | ||
operating lease minimum lease payments | $ 0 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease remaining lease term | 1 year | ||
Lease renewal term | 1 year | ||
Optional termination period | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease remaining lease term | 67 years | ||
Lease renewal term | 10 years | ||
Optional termination period | 7 years |
Leases - Lease Costs and Cash F
Leases - Lease Costs and Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease cost | $ 85 | $ 98 | $ 101 |
Variable lease cost | 14 | 12 | 12 |
Cash paid for operating leases included in operating cash flows | 115 | 107 | 96 |
Non-cash operating lease liabilities arising from obtaining operating right-of-use assets | 48 | 53 | 67 |
Variable lease, payment | 14 | 12 | 12 |
Cost of subscription and maintenance revenue | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease cost | 8 | 8 | 7 |
Variable lease cost | 1 | 1 | 1 |
Cost of other revenue | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease cost | 3 | 2 | 2 |
Variable lease cost | 0 | 0 | 0 |
Marketing and sales | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease cost | 36 | 43 | 45 |
Variable lease cost | 6 | 5 | 5 |
Research and development | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease cost | 27 | 30 | 29 |
Variable lease cost | 5 | 4 | 4 |
General and administrative | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease cost | 11 | 15 | 18 |
Variable lease cost | $ 2 | $ 2 | $ 2 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | Jan. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 94 |
2025 | 78 |
2026 | 64 |
2027 | 43 |
2028 | 34 |
Thereafter | 104 |
Total lease payments | 417 |
Less imputed interest | 32 |
Present value of operating lease liabilities | $ 385 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | $ 14 | $ 18 | |
Total derivative liabilities | 31 | 11 | |
Amount of gain (loss) recognized in accumulated other comprehensive loss, net of tax, (effective portion) | 40 | 31 | $ (28) |
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | 36 | (17) | 4 |
Interest and other expense, net | 7 | 11 | (1) |
Net revenue | |||
Derivatives, Fair Value [Line Items] | |||
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | 60 | (12) | 0 |
Cost of revenue | |||
Derivatives, Fair Value [Line Items] | |||
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | (3) | 0 | 0 |
Operating expenses | |||
Derivatives, Fair Value [Line Items] | |||
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | (21) | (5) | $ 4 |
Prepaid expenses and other current assets | Foreign Exchange Contract | Foreign currency contracts designated as cash flow hedges | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | 9 | 12 | |
Prepaid expenses and other current assets and long-term other assets | Foreign Exchange Contract | Derivatives not designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | 5 | 6 | |
Other accrued liabilities | Foreign Exchange Contract | Foreign currency contracts designated as cash flow hedges | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative liabilities | 20 | 7 | |
Other accrued liabilities | Foreign Exchange Contract | Derivatives not designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative liabilities | $ 11 | $ 4 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jan. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Gain expected to be recognized in next 24 months | $ 64 | |
Designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 934 | $ 1,080 |
Derivatives not designated as hedging instruments | Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ 951 | $ 542 |
Derivative Instruments - Effect
Derivative Instruments - Effects of Derivative Instruments on Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Derivatives, Fair Value [Line Items] | |||
Total net revenue | $ 5,005 | $ 4,386 | $ 3,790 |
Marketing and sales | 1,745 | 1,623 | 1,440 |
Research and development | 1,219 | 1,115 | 932 |
General and administrative | 532 | 572 | 414 |
Amount of (loss) gain reclassified from accumulated other comprehensive income into income | 36 | (17) | 4 |
Foreign Exchange Contract | Foreign currency contracts designated as cash flow hedges | Subscription revenue | |||
Derivatives, Fair Value [Line Items] | |||
Amount of (loss) gain reclassified from accumulated other comprehensive income into income | 60 | (11) | |
Foreign Exchange Contract | Foreign currency contracts designated as cash flow hedges | Maintenance revenue | |||
Derivatives, Fair Value [Line Items] | |||
Amount of (loss) gain reclassified from accumulated other comprehensive income into income | 0 | (1) | |
Foreign Exchange Contract | Foreign currency contracts designated as cash flow hedges | Cost of subscription and maintenance revenue | |||
Derivatives, Fair Value [Line Items] | |||
Amount of (loss) gain reclassified from accumulated other comprehensive income into income | (3) | 0 | |
Foreign Exchange Contract | Foreign currency contracts designated as cash flow hedges | Marketing and sales | |||
Derivatives, Fair Value [Line Items] | |||
Amount of (loss) gain reclassified from accumulated other comprehensive income into income | (10) | (3) | |
Foreign Exchange Contract | Foreign currency contracts designated as cash flow hedges | Research and development | |||
Derivatives, Fair Value [Line Items] | |||
Amount of (loss) gain reclassified from accumulated other comprehensive income into income | (5) | (1) | |
Foreign Exchange Contract | Foreign currency contracts designated as cash flow hedges | General and administrative | |||
Derivatives, Fair Value [Line Items] | |||
Amount of (loss) gain reclassified from accumulated other comprehensive income into income | (6) | (1) | |
Subscription | |||
Derivatives, Fair Value [Line Items] | |||
Total net revenue | 4,651 | 4,060 | 3,381 |
Maintenance | |||
Derivatives, Fair Value [Line Items] | |||
Total net revenue | 65 | 76 | 183 |
Subscription and Maintenance | |||
Derivatives, Fair Value [Line Items] | |||
Total net revenue | 4,716 | 4,136 | 3,564 |
Cost of goods and services sold | $ 343 | $ 299 | $ 242 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Total non cancellable purchase commitments | $ 287 | ||
Royalty expense recorded under cost of license and other revenue | $ 18 | $ 16 | $ 15 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | |||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | Nov. 30, 2022 | |
Equity [Abstract] | ||||
Repurchase and retirement of common shares (in shares) | 5 | 4 | 2 | |
Average repurchase price per share (in dollars per share) | $ 198.51 | $ 275.50 | $ 207.61 | |
Stock repurchase authorized amount | $ 5,000,000,000 | |||
Shares remained available for repurchase (in shares) | 3 | |||
Amount remained available for repurchase | $ 5,000,000,000 |
Interest and Other Expense, n_3
Interest and Other Expense, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Other Income and Expenses [Abstract] | |||
Interest and investment expense, net | $ (71) | $ (65) | $ (51) |
Gain on foreign currency | 15 | 1 | 3 |
Gain (loss) on strategic investments | 1 | 3 | (41) |
Other income | 12 | 8 | 7 |
Interest and other expense, net | $ (43) | $ (53) | $ (82) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 849 | $ 965 | $ (139) |
Other comprehensive income (loss) before reclassifications | (16) | (11) | |
Pre-tax gain (loss) reclassified from accumulated other comprehensive income | (39) | 22 | |
Tax effects | (6) | (9) | |
Total other comprehensive (loss) income | (61) | 2 | 34 |
Ending balance | 1,145 | 849 | 965 |
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (124) | (126) | (160) |
Total other comprehensive (loss) income | (61) | 2 | 34 |
Ending balance | (185) | (124) | (126) |
Net Unrealized Gains (Losses) on Derivative Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 24 | (24) | |
Other comprehensive income (loss) before reclassifications | 83 | 39 | |
Pre-tax gain (loss) reclassified from accumulated other comprehensive income | (36) | 17 | |
Tax effects | (7) | (8) | |
Total other comprehensive (loss) income | 40 | 48 | |
Ending balance | 64 | 24 | (24) |
Net Unrealized Gains (Losses) on Available for Sale Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 18 | 6 | |
Other comprehensive income (loss) before reclassifications | 0 | 12 | |
Pre-tax gain (loss) reclassified from accumulated other comprehensive income | 0 | 0 | |
Tax effects | 0 | 0 | |
Total other comprehensive (loss) income | 0 | 12 | |
Ending balance | 18 | 18 | 6 |
Defined Benefit Pension Components | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (16) | (21) | |
Other comprehensive income (loss) before reclassifications | (1) | 1 | |
Pre-tax gain (loss) reclassified from accumulated other comprehensive income | (3) | 5 | |
Tax effects | 1 | (1) | |
Total other comprehensive (loss) income | (3) | 5 | |
Ending balance | (19) | (16) | (21) |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (150) | (87) | |
Other comprehensive income (loss) before reclassifications | (98) | (63) | |
Pre-tax gain (loss) reclassified from accumulated other comprehensive income | 0 | 0 | |
Tax effects | 0 | 0 | |
Total other comprehensive (loss) income | (98) | (63) | |
Ending balance | $ (248) | $ (150) | $ (87) |
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 | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Numerator: | |||
Net income | $ 823 | $ 497 | $ 1,208 |
Denominator: | |||
Weighted average shares for basic net income per share (in shares) | 216 | 220 | 219 |
Effect of dilutive securities (in shares) | 2 | 2 | 3 |
Weighted average shares for dilutive net income per share (in shares) | 218 | 222 | 222 |
Basic net income per share (in dollars per share) | $ 3.81 | $ 2.26 | $ 5.52 |
Diluted net income per share (in dollars per share) | $ 3.78 | $ 2.24 | $ 5.44 |
Net Income Per Share - Narrativ
Net Income Per Share - Narrative (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Potentially dilutive shares excluded from the computation of diluted net income per share (in shares) | 962 | 153 | 90 |
Retirement Benefit Plans - Narr
Retirement Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Projected benefit obligation of plan assets | $ 76 | $ 107 | |
Accumulated benefit obligation | 69 | 100 | |
Fair value of plan assets | 76 | 112 | |
Other long-term liabilities | 5 | 9 | |
Net periodic (benefit) cost | 3 | $ 3 | $ 3 |
Estimated future employer contributions in next fiscal year | $ 5 | ||
Mandatory Retirement Savings, Cash Balance Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Weighted-average interest crediting rate | 1% | 1% | 1% |
Supplementary Retirement Savings, Cash Balance Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Weighted-average interest crediting rate | 0.30% | 0.30% | 0.10% |
United States | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum annual contributions per employee | 75% | ||
Cost recognized | $ 26 | $ 24 | $ 22 |
Foreign Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Contributions paid by employer | $ 39 | $ 38 | $ 32 |
Retirement Benefit Plans - Esti
Retirement Benefit Plans - Estimated Payments (Details) $ in Millions | Jan. 31, 2023 USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2024 | $ 3 |
2025 | 3 |
2026 | 3 |
2027 | 3 |
2028 | 3 |
2029-2033 | 17 |
Total | $ 32 |
SCHEDULE II_ VALUATION AND QU_2
SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS (Details) - Partner Program reserves - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at the Beginning of Year | $ 64 | $ 64 | $ 60 |
Additions Charged to Costs and Expenses or Revenues | 928 | 623 | 492 |
Deductions | 902 | 623 | 488 |
Balance at End of Year | $ 90 | $ 64 | $ 64 |