Cover
Cover - shares | 9 Months Ended | |
Oct. 31, 2023 | Nov. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2023 | |
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, par value $0.01 per share | |
Trading Symbol | ADSK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 213,915,325 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000769397 | |
Current Fiscal Year End Date | --01-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Net revenue: | ||||
Total net revenue | $ 1,414 | $ 1,280 | $ 4,028 | $ 3,687 |
Cost of revenue: | ||||
Total cost of revenue | 127 | 120 | 381 | 356 |
Gross profit | 1,287 | 1,160 | 3,647 | 3,331 |
Operating expenses: | ||||
Marketing and sales | 439 | 454 | 1,344 | 1,306 |
Research and development | 339 | 311 | 1,021 | 906 |
General and administrative | 165 | 129 | 438 | 377 |
Amortization of purchased intangibles | 10 | 10 | 31 | 30 |
Total operating expenses | 953 | 904 | 2,834 | 2,619 |
Income from operations | 334 | 256 | 813 | 712 |
Interest and other expense, net | (14) | (14) | (14) | (43) |
Income before income taxes | 320 | 242 | 799 | 669 |
Provision for income taxes | (79) | (44) | (175) | (139) |
Net income | $ 241 | $ 198 | $ 624 | $ 530 |
Basic net income per share (in usd per share) | $ 1.13 | $ 0.92 | $ 2.92 | $ 2.44 |
Diluted net income per share (in usd per share) | $ 1.12 | $ 0.91 | $ 2.89 | $ 2.43 |
Weighted average shares used in computing basic net income per share (in shares) | 214 | 216 | 214 | 217 |
Weighted average shares used in computing diluted net income per share (in shares) | 216 | 217 | 216 | 218 |
Subscription and Maintenance | ||||
Net revenue: | ||||
Total net revenue | $ 1,326 | $ 1,204 | $ 3,817 | $ 3,488 |
Cost of revenue: | ||||
Cost of revenue | 94 | 86 | 285 | 253 |
Amortization of developed technologies | 12 | 15 | 34 | 44 |
Subscription | ||||
Net revenue: | ||||
Total net revenue | 1,314 | 1,188 | 3,777 | 3,437 |
Maintenance | ||||
Net revenue: | ||||
Total net revenue | 12 | 16 | 40 | 51 |
Other | ||||
Net revenue: | ||||
Total net revenue | 88 | 76 | 211 | 199 |
Cost of revenue: | ||||
Cost of revenue | $ 21 | $ 19 | $ 62 | $ 59 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 241 | $ 198 | $ 624 | $ 530 |
Other comprehensive income (loss), net of reclassifications: | ||||
Net gain (loss) on derivative instruments (net of tax effect of zero, $(5), $3, and $(17), respectively) | 4 | 26 | (22) | 99 |
Change in net unrealized (loss) gain on available-for-sale debt securities (net of tax effect of zero for all periods presented) | (1) | 0 | (2) | 3 |
Net change in cumulative foreign currency translation loss (net of tax effect of zero, zero, $5, and $1, respectively) | (62) | (64) | (48) | (185) |
Total other comprehensive loss | (59) | (38) | (72) | (83) |
Total comprehensive income | $ 182 | $ 160 | $ 552 | $ 447 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net gain (loss) on derivative instruments, tax expense (benefit) | $ 0 | $ (5) | $ 3 | $ (17) |
Change in net unrealized gain (loss) on available-for-sale securities, tax expense (benefit) | 0 | 0 | 0 | 0 |
Net change in cumulative foreign currency translation loss, tax expense (benefit) | $ 0 | $ 0 | $ 5 | $ 1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Oct. 31, 2023 | Jan. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,526 | $ 1,947 |
Marketable securities | 428 | 125 |
Accounts receivable, net | 579 | 961 |
Prepaid expenses and other current assets | 406 | 308 |
Total current assets | 2,939 | 3,341 |
Long-term marketable securities | 219 | 102 |
Computer equipment, software, furniture and leasehold improvements, net | 128 | 144 |
Operating lease right-of-use assets | 237 | 245 |
Intangible assets, net | 411 | 407 |
Goodwill | 3,604 | 3,625 |
Deferred income taxes, net | 1,122 | 1,014 |
Long-term other assets | 566 | 560 |
Total assets | 9,226 | 9,438 |
Current liabilities: | ||
Accounts payable | 127 | 102 |
Accrued compensation | 378 | 358 |
Accrued income taxes | 64 | 33 |
Deferred revenue | 3,120 | 3,203 |
Operating lease liabilities | 71 | 85 |
Other accrued liabilities | 152 | 219 |
Total current liabilities | 3,912 | 4,000 |
Long-term deferred revenue | 903 | 1,377 |
Long-term operating lease liabilities | 294 | 300 |
Long-term income taxes payable | 161 | 164 |
Long-term deferred income taxes | 31 | 32 |
Long-term notes payable, net | 2,283 | 2,281 |
Long-term other liabilities | 160 | 139 |
Stockholders’ equity: | ||
Common stock and additional paid-in capital | 3,678 | 3,325 |
Accumulated other comprehensive loss | (257) | (185) |
Accumulated deficit | (1,939) | (1,995) |
Total stockholders’ equity | 1,482 | 1,145 |
Total liabilities and stockholders’ equity | $ 9,226 | $ 9,438 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Operating activities: | ||
Net income | $ 624 | $ 530 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 102 | 113 |
Stock-based compensation expense | 544 | 493 |
Deferred income taxes | (116) | (98) |
Lease-related asset impairments | 7 | 21 |
Other | (15) | 13 |
Changes in operating assets and liabilities, net of business combinations: | ||
Accounts receivable | 380 | 70 |
Prepaid expenses and other assets | (51) | 1 |
Accounts payable and other liabilities | (77) | (76) |
Deferred revenue | (551) | 14 |
Accrued income taxes | 29 | 79 |
Net cash provided by operating activities | 876 | 1,160 |
Investing activities: | ||
Purchases of marketable securities | (944) | (199) |
Sales and maturities of marketable securities | 529 | 302 |
Capital expenditures | (21) | (32) |
Purchases of intangible assets | (25) | (6) |
Business combinations, net of cash acquired | (44) | (96) |
Other investing activities | (19) | (53) |
Net cash used in investing activities | (524) | (84) |
Financing activities: | ||
Proceeds from issuance of common stock, net of issuance costs | 130 | 124 |
Taxes paid related to net share settlement of equity awards | (153) | (127) |
Repurchases of common stock | (730) | (894) |
Net cash used in financing activities | (753) | (897) |
Effect of exchange rate changes on cash and cash equivalents | (20) | (42) |
Net decrease in cash and cash equivalents | (421) | 137 |
Cash and cash equivalents at beginning of period | 1,947 | 1,528 |
Cash and cash equivalents at end of period | 1,526 | 1,665 |
Non-cash financing activities: | ||
Fair value of common stock issued to settle liability-classified restricted common stock | 9 | 8 |
Fair value of common stock issued related to business combinations | $ 0 | $ 10 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Autodesk, Inc. (“Autodesk,” “we,” “us,” “our,” or the “Company”) as of October 31, 2023, and for the three and nine months ended October 31, 2023 and 2022, have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information along with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In management’s opinion, Autodesk made all adjustments (consisting of normal, recurring and non-recurring adjustments) during the quarter that were considered necessary for the fair statement of the financial position and operating results of the Company. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. In addition, the results of operations for the three and nine months ended October 31, 2023, are not necessarily indicative of the results for the entire fiscal year ending January 31, 2024, or for any other period. Further, the balance sheet as of January 31, 2023, has been derived from the audited Consolidated Balance Sheet as of this date. There have been no material changes, other than what is discussed herein, to Autodesk's significant accounting policies as compared to the significant accounting policies disclosed in the Annual Report on Form 10-K for the fiscal year ended January 31, 2023. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes, together with management’s discussion and analysis of financial position and results of operations, contained in Autodesk’s Annual Report on Form 10-K for the fiscal year ended January 31, 2023, filed on March 14, 2023. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Oct. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards With the exception of those discussed below, there have been no recent changes in accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) or adopted by the Company during the nine months ended October 31, 2023, that are applicable to the Company. Recently Issued Accounting Standards But Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which are intended to improve reportable segment disclosure requirements. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for Autodesk’s fiscal year beginning February 1, 2024, and interim periods for Autodesk’s fiscal year beginning February 1, 2025, and should be applied on a retrospective basis to all periods presented. Autodesk is currently evaluating the effect of adopting ASU 2023-07 on its disclosures. Accounting Standards 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 adopted ASU 2022-03 as of February 1, 2023. The adoption of ASU 2022-03 did not have a material impact on Autodesk’s consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Oct. 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 Condensed Consolidated Statements of Operations. Information regarding the components of Autodesk's net revenue from contracts with customers by product family, geographic location, sales channel, and product type is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Net revenue by product family: Architecture, Engineering and Construction $ 675 $ 575 $ 1,884 $ 1,676 AutoCAD and AutoCAD LT 372 354 1,085 1,025 Manufacturing 269 254 771 721 Media and Entertainment 73 78 218 217 Other 25 19 70 48 Total net revenue $ 1,414 $ 1,280 $ 4,028 $ 3,687 Net revenue by geographic area: Americas U.S. $ 520 $ 447 $ 1,461 $ 1,269 Other Americas 120 94 321 271 Total Americas 640 541 1,782 1,540 Europe, Middle East and Africa 516 476 1,496 1,398 Asia Pacific 258 263 750 749 Total net revenue $ 1,414 $ 1,280 $ 4,028 $ 3,687 Net revenue by sales channel: Indirect $ 876 $ 827 $ 2,546 $ 2,412 Direct 538 453 1,482 1,275 Total net revenue $ 1,414 $ 1,280 $ 4,028 $ 3,687 Net revenue by product type: Design $ 1,192 $ 1,087 $ 3,432 $ 3,155 Make 134 117 385 333 Other 88 76 211 199 Total net revenue $ 1,414 $ 1,280 $ 4,028 $ 3,687 Payments for product subscriptions, cloud subscriptions, and maintenance subscriptions are typically due in annual installments or up front with payment terms of 30 to 45 days. Payments on EBAs are typically due in annual installments over the contract term, with payment terms of 30 to 60 days. Autodesk does not have any material variable consideration, such as obligations for returns, refunds, warranties, or amounts due to customers for which significant estimation or judgment is required as of the reporting date. Remaining performance obligations consist of tota l short-term, long-term, a nd unbilled deferred revenue. As of October 31, 2023, Autodesk had remaining performance obligations of $5.24 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 67% of our remaining performance obligations as revenue during the next 12 months. We expect to recognize the remaining $1.72 billion or 33% 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, 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 October 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 three months ended October 31, 2023 and 2022, that was included in the deferred revenue balances at January 31, 2023 and 2022, was $730 million and $642 million, respectively. Revenue recognized during the nine months ended October 31, 2023 and 2022, that was included in the deferred revenue balances at January 31, 2023 and 2022, was $2.71 billion and $2.46 billion, respectively. The satisfaction of performance obligations typically lags behind payments received under revenue contracts from customers. 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 Condensed Consolidated Balance Sheets. Capitalized costs were $238 million and $190 million at October 31, 2023, and January 31, 2023, respectively. Accumulated amortization was $69 million and $41 million at October 31, 2023, and January 31, 2023, respectively. Amortization expense for the three months ended October 31, 2023 and 2022, was $10 million and $7 million, respectively. Amortization expense for the nine months ended October 31, 2023 and 2022 was $28 million and $16 million, respectively. |
Concentration of Credit Risk
Concentration of Credit Risk | 9 Months Ended |
Oct. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk Autodesk places its cash, cash equivalents, and marketable securities in highly liquid instruments with, and in the custody of, multiple diversified financial institutions globally with high credit ratings, and limits the amounts invested with any one institution, type of security, and issuer. Autodesk’s primary commercial banking relationship is with Citigroup Inc. and its global affiliates. Citibank, N.A., an affiliate of Citigroup, is one of the lead lenders and an agent in the syndicate of Autodesk’s $1.5 billion revolving credit facility. See Note 13, “Borrowing Arrangements,” in the Notes to Condensed Consolidated Financial Statements for further discussion. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Oct. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | Financial Instruments The following tables summarize the Company's financial instruments by significant investment category as of October 31, 2023, and January 31, 2023: October 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents (1): Money market funds $ 546 $ — $ — $ 546 Commercial paper 257 — — 257 Certificates of deposit 69 — — 69 Other (2) 14 — — 14 Marketable securities: Short-term Commercial paper 207 — — 207 U.S. government securities 90 — — 90 Corporate debt securities 71 — — 71 Asset-backed securities 32 — — 32 Agency discount notes 11 — — 11 Other (3) 17 — — 17 Long-term Corporate debt securities 97 — (1) 96 Asset-backed securities 55 — (1) 54 Agency mortgage backed securities 35 — (1) 34 U.S. government securities 23 — — 23 Other (4) 12 — — 12 Mutual funds (5) (6) 87 6 (3) 90 Total $ 1,623 $ 6 $ (6) $ 1,623 ___________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Primarily consists of U.S. government securities and mortgage-backed securities. (3) Primarily consists of supranational bonds, mortgage-backed securities, agency bonds, and certificates of deposit . (4) Consists of agency bonds, agency collateralized mortgage obligations, and mortgage-backed securities. (5) See Note 11, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. 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 Condensed 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 11, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets,” or “Long-term other assets,” in the accompanying Condensed Consolidated Balance Sheets. The following table summarizes the fair values of investments classified as marketable debt securities by contractual maturity date as of October 31, 2023: Fair Value Due within 1 year $ 401 Due in 1 year through 5 years 203 Due in 5 years through 10 years 15 Due after 10 years 28 Total $ 647 As of both October 31, 2023, and January 31, 2023, Autodesk had no material unrealized losses, individually and in the aggregate, for marketable debt securities that are in a continuous unrealized loss position for greater than 12 months. Total unrealized gains for securities with net gains in accumulated other comprehensive income were not material for the nine months ended October 31, 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 October 31, 2023, and January 31, 2023. There were no write offs of accrued interest receivables for both the nine months ended October 31, 2023 and 2022. There were no material realized gain or loss for the sales or redemptions of marketable debt securities during both the nine months ended October 31, 2023 and 2022. Realized gains and losses from the sales or redemptions of marketable debt securities are recorded in “Interest and other expense, net” on the Company's Condensed Consolidated Statements of Operations. Proceeds from the sale and maturity of marketable debt securities were as follows: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Marketable debt securities $ 190 $ 57 $ 529 $ 302 Strategic investments in equity securities As of October 31, 2023, and January 31, 2023, Autodesk had $167 million and $177 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 investment 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 Condensed Consolidated Statements of Operations. These adjustments were as follows: Nine Months Ended October 31, Cumulative Amount as of 2023 2022 October 31, 2023 Upward adjustments $ — $ 6 $ 29 Negative adjustments, including impairments (21) (5) (107) Net unrealized adjustments $ (21) $ 1 $ (78) Realized gains for the disposition of strategic investment equity securities for both the three and nine months ended October 31, 2023 and 2022 were immaterial. 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 October 31, 2023, and January 31, 2023: October 31, 2023 Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1): Money market funds $ 546 $ — $ — $ 546 Commercial paper — 257 — 257 Certificates of deposit — 69 — 69 Other (2) — 14 — 14 Marketable securities: Short-term Commercial paper — 207 — 207 U.S. government securities — 90 — 90 Corporate debt securities — 71 — 71 Asset-backed securities — 32 — 32 Agency discount notes — 11 — 11 Other (3) — 17 — 17 Long-term Corporate debt securities — 96 — 96 Asset-backed securities — 54 — 54 Agency mortgage backed securities — 34 — 34 U.S. government securities — 23 — 23 Other (4) — 12 — 12 Long-term other assets: Mutual funds (5)(6) 90 — — 90 Derivative assets: Derivative contract assets (6) — 27 — 27 Derivative liabilities: Derivative contract liabilities (7) — (18) — (18) Total $ 636 $ 996 $ — $ 1,632 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Primarily consists of U.S. government securities and mortgage-backed securities. (3) Primarily consists of supranational bonds, mortgage-backed securities, agency bonds, and certificates of deposit . (4) Consists of agency bonds, agency collateralized mortgage obligations, and mortgage-backed securities. (5) See Note 11, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. (7) Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets. January 31, 2023 Level 1 Level 2 Level 3 Total Assets: 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 Condensed 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 11, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets,” or “Long-term other assets,” in the accompanying Condensed Consolidated Balance Sheets. (7) |
Equity Compensation
Equity Compensation | 9 Months Ended |
Oct. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Compensation | Equity Compensation Restricted Stock Units A summary of restricted stock activity for the nine months ended October 31, 2023, is as follows: Unvested Weighted (in thousands) Unvested restricted stock units at January 31, 2023 4,848 $ 216.20 Granted 3,544 199.54 Vested (2,334) 216.56 Canceled/Forfeited (261) 212.95 Performance Adjustment (1) (11) 189.41 Unvested restricted stock units at October 31, 2023 5,786 $ 205.98 _______________ (1) Based on Autodesk's financial results and relative total stockholder return for the fiscal 2023 performance period. The performance stock units were attained at rates ranging from 86% to 110% of the target award. The fair value of the shares vested during the nine months ended October 31, 2023 and 2022, was $476 million and $402 million, respectively. During the nine months ended October 31, 2023, Autodesk granted 3,233 thousand restricted stock units. 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. Autodesk recorded stock-based compensation expense related to restricted stock units of $151 million and $130 million during the three months ended October 31, 2023 and 2022, respectively. Autodesk recorded stock-based compensation expense related to restricted stock units of $445 million and $383 million during the nine months ended October 31, 2023 and 2022, respectively. During the nine months ended October 31, 2023 and 2022, Autodesk settled liability-classified awards in the amount of $9 million and $8 million, respectively. The ultimate number of shares earned was based on the Autodesk closing stock price on the vesting date. As these awards were settled in a fixed dollar amount of shares, the awards were accounted for as a liability-classified award and were expensed using the straight-line method over the vesting period. During the nine months ended October 31, 2023, Autodesk granted 311 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 2024 as well as 1-year Relative TSR (covering year one). • Up to one third of the performance stock units may vest following year two, depending upon the achievement of the performance criteria for year two as well as 2-year Relative TSR (covering years one and two). • Up to one third of the performance stock units may vest following year three, depending upon the achievement of the performance criteria for year three as well as 3-year Relative TSR (covering years one, two and three). The performance criteria for the performance stock units vested during the nine months ended October 31, 2023, was based on revenue and free cash flow goals adopted by the Compensation and Human Resource Committee. Performance stock units are not considered outstanding stock at the time of grant, as the holders of these units are not entitled to any of the rights of a stockholder, including voting rights. Autodesk recorded stock-based compensation expense related to performance stock units of $11 million and $13 million for the three months ended October 31, 2023 and 2022, respectively. Autodesk recorded stock-based compensation expense related to performance stock units of $32 million and $42 million during the nine months ended October 31, 2023 and 2022, respectively. Common Stock 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 was dependent on the respective employees’ continued employment through the vesting period. During the nine months ended October 31, 2023, Autodesk issued the remaining 39 thousand shares at an aggregate fair value of $8 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 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 volume weighted average closing price (“VWAP”) of Autodesk’s common stock at the issuance date. As of October 31, 2023, remaining shares to be issued are estimated to be 33 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. 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 Condensed Consolidated Balance Sheets and will be amortized to stock-based compensation expense for post-acquisition services using the straight-line method over the two-year vesting period. 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. During the nine months ended October 31, 2023, Autodesk issued 9 thousand shares at an aggregate fair value of $1 million. Remaining shares to be issued are estimated to be 13 thousand as of October 31, 2023. The awards are accounted for as liability-classified awards and are recognized as compensation expense using the straight-line method over the vesting period. Autodesk recorded stock-based compensation expense related to common stock shares of $5 million and $10 million for the three months ended October 31, 2023 and 2022, respectively. Autodesk recorded stock-based compensation expense related to common stock shares of $15 million and $27 million for the nine months ended October 31, 2023 and 2022, respectively. 1998 Employee Qualified Stock Purchase Plan (“ESPP”) Under Autodesk’s ESPP, which was approved by stockholders in 1998, eligible employees may purchase shares of Autodesk’s common stock at their discretion using up to 15% of their eligible compensation, subject to certain limitations, at 85% of the lower of Autodesk's closing price (fair market value) on the offering date or the exercise date. The offering period for ESPP awards consists of four, six-month exercise periods within a 24-month offering period. A summary of the ESPP activity for the three and nine months October 31, 2023 and 2022, is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Issued shares (in thousands) 357 363 791 740 Average price of issued shares $ 164.30 $ 158.78 $ 163.91 $ 166.44 Weighted average grant date fair value of shares granted under the ESPP (1) $ 67.29 $ 66.43 $ 68.70 $ 67.77 _______________ (1) Calculated as of the award grant date using the Black-Scholes Merton (“BSM”) option pricing model. Stock-based Compensation Expense The following table summarizes stock-based compensation expense for the three and nine months ended October 31, 2023 and 2022, as follows: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Cost of subscription and maintenance revenue $ 9 $ 9 $ 28 $ 26 Cost of other revenue 4 3 11 9 Marketing and sales 66 68 202 199 Research and development 78 71 233 199 General and administrative 24 21 69 63 Stock-based compensation expense related to stock awards and ESPP purchases 181 172 543 496 Tax (benefit) expense (2) (2) 1 7 Stock-based compensation expense related to stock awards and ESPP purchases, net of tax $ 179 $ 170 $ 544 $ 503 Stock-based Compensation Expense Assumptions Autodesk determines the grant date fair value of its share-based payment awards using a BSM option pricing model or the quoted stock price on the date of grant, unless the awards are subject to market conditions, in which case Autodesk uses the Monte Carlo simulation model. The Monte Carlo simulation model uses multiple input variables to estimate the probability that market conditions will be achieved. Autodesk uses the following assumptions to estimate the fair value of stock-based awards: Three Months Ended October 31, 2023 Three Months Ended October 31, 2022 Performance Stock Units ESPP Performance Stock Units ESPP Range of expected volatility N/A 29.4 - 37.4% N/A 40.7 - 44.9% Range of expected lives (in years) N/A 0.5- 2.0 N/A 0.5 - 2.0 Expected dividends N/A —% N/A —% Range of risk-free interest rates N/A 5.0 -5.5% N/A 3.7 - 3.9% Nine Months Ended October 31, 2023 Nine Months Ended October 31, 2022 Performance Stock Units ESPP Performance Stock Units ESPP Range of expected volatilities 40.9 - 42.5% 29.4 - 42.4% 39.4 - 40.7% 38.3 - 44.9% Range of expected lives (in years) N/A 0.5 - 2.0 N/A 0.5 - 2.0 Expected dividends —% —% —% —% Range of risk-free interest rates 4.3 - 4.7% 4.3 - 5.5% 1.2 - 1.6% 0.9 - 3.9% 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. The range of expected lives of ESPP awards are based upon the four six-month exercise periods within a 24-month offering period. Autodesk does not currently pay, and does not anticipate paying in the foreseeable future, any cash dividends. Consequently, an expected dividend yield of zero is used in the BSM option pricing model and the Monte Carlo simulation model. The risk-free interest rate used in the BSM option pricing model and the Monte Carlo simulation model for stock-based awards is the historical yield on U.S. Treasury securities with equivalent remaining lives. Autodesk recognizes expense only for the stock-based awards that ultimately vest. Autodesk accounts for forfeitures of our stock-based awards as those forfeitures occur. |
Income Tax
Income Tax | 9 Months Ended |
Oct. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax Autodesk had income tax expense of $79 million, relative to pre-tax income of $320 million for the three months ended October 31, 2023, and income tax expense of $44 million, relative to pre-tax income of $242 million for the three months ended October 31, 2022. Income tax expense for the three months ended October 31, 2023, reflects an increased withholding tax expense and non-recurring integration tax expense, offset by a decrease in tax expense as a result of jurisdictional mix of year-to-date earnings, resulting in a net tax expense increase year over year. Autodesk had income tax expense of $175 million, relative to pre-tax income of $799 million for the nine months ended October 31, 2023, and income tax expense of $139 million, relative to pre-tax income of $669 million for the nine months ended October 31, 2022. Income tax expense for the nine months ended October 31, 2023, reflects a reduced U.S. foreign derived intangible income tax benefit, increased withholding tax expense and non-recurring integration tax expense, offset by an income tax benefit arising from temporary relief provided by the Internal Revenue Service relating to U.S. foreign tax credit regulations and reduced tax expense relating to stock-based compensation. Autodesk regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, Autodesk considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. We have maintained a valuation allowance on all or part of our Australia, New Zealand, California, Michigan deferred tax assets, as well as our U.S. capital loss deferred tax assets as it is more likely than not that these deferred tax assets will not be realized. As of October 31, 2023, the Company had $234 million of gross unrecognized tax benefits, of which $195 million would impact the effective tax rate, if recognized. The remaining $39 million would reduce our valuation allowance, if recognized. Approximately $2 million of unrecognized tax benefits will decrease in the next twelve months for statute lapses. Signed into law on August 16, 2022, the Inflation Reduction Act contains many revisions to the Internal Revenue Code effective in taxable years beginning after December 31, 2022, including a 15% corporate alternative minimum tax. Autodesk continues to monitor the impact of the Inflation Reduction Act on its consolidated financial statements. |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Intangible Assets, Net The following tables summarize the Company's intangible assets, net, as of October 31, 2023, and January 31, 2023: October 31, 2023 Gross Carrying Amount (1) Accumulated Amortization Net Customer relationships $ 663 $ (426) $ 237 Developed technologies 920 (750) 170 Trade names and patents 115 (111) 4 Other 1 (1) — Total intangible assets $ 1,699 $ (1,288) $ 411 _______________ (1) Includes the effects of foreign currency translation. January 31, 2023 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. |
Cloud Computing Arrangements
Cloud Computing Arrangements | 9 Months Ended |
Oct. 31, 2023 | |
Capitalized Contract Cost [Abstract] | |
Cloud Computing Arrangements | Revenue Recognition Revenue Disaggregation Autodesk recognizes revenue from the sale of (1) product subscriptions, cloud service offerings, and enterprise business agreements (“EBAs”), (2) renewal fees for existing maintenance plan agreements that were initially purchased with a perpetual software license, and (3) consulting, training, and other products and services. The three categories are presented as line items on Autodesk's Condensed Consolidated Statements of Operations. Information regarding the components of Autodesk's net revenue from contracts with customers by product family, geographic location, sales channel, and product type is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Net revenue by product family: Architecture, Engineering and Construction $ 675 $ 575 $ 1,884 $ 1,676 AutoCAD and AutoCAD LT 372 354 1,085 1,025 Manufacturing 269 254 771 721 Media and Entertainment 73 78 218 217 Other 25 19 70 48 Total net revenue $ 1,414 $ 1,280 $ 4,028 $ 3,687 Net revenue by geographic area: Americas U.S. $ 520 $ 447 $ 1,461 $ 1,269 Other Americas 120 94 321 271 Total Americas 640 541 1,782 1,540 Europe, Middle East and Africa 516 476 1,496 1,398 Asia Pacific 258 263 750 749 Total net revenue $ 1,414 $ 1,280 $ 4,028 $ 3,687 Net revenue by sales channel: Indirect $ 876 $ 827 $ 2,546 $ 2,412 Direct 538 453 1,482 1,275 Total net revenue $ 1,414 $ 1,280 $ 4,028 $ 3,687 Net revenue by product type: Design $ 1,192 $ 1,087 $ 3,432 $ 3,155 Make 134 117 385 333 Other 88 76 211 199 Total net revenue $ 1,414 $ 1,280 $ 4,028 $ 3,687 Payments for product subscriptions, cloud subscriptions, and maintenance subscriptions are typically due in annual installments or up front with payment terms of 30 to 45 days. Payments on EBAs are typically due in annual installments over the contract term, with payment terms of 30 to 60 days. Autodesk does not have any material variable consideration, such as obligations for returns, refunds, warranties, or amounts due to customers for which significant estimation or judgment is required as of the reporting date. Remaining performance obligations consist of tota l short-term, long-term, a nd unbilled deferred revenue. As of October 31, 2023, Autodesk had remaining performance obligations of $5.24 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 67% of our remaining performance obligations as revenue during the next 12 months. We expect to recognize the remaining $1.72 billion or 33% 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, 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 October 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 three months ended October 31, 2023 and 2022, that was included in the deferred revenue balances at January 31, 2023 and 2022, was $730 million and $642 million, respectively. Revenue recognized during the nine months ended October 31, 2023 and 2022, that was included in the deferred revenue balances at January 31, 2023 and 2022, was $2.71 billion and $2.46 billion, respectively. The satisfaction of performance obligations typically lags behind payments received under revenue contracts from customers. 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 Condensed Consolidated Balance Sheets. Capitalized costs were $238 million and $190 million at October 31, 2023, and January 31, 2023, respectively. Accumulated amortization was $69 million and $41 million at October 31, 2023, and January 31, 2023, respectively. Amortization expense for the three months ended October 31, 2023 and 2022, was $10 million and $7 million, respectively. Amortization expense for the nine months ended October 31, 2023 and 2022 was $28 million and $16 million, respectively. |
Goodwill
Goodwill | 9 Months Ended |
Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill consists of the excess of the consideration transferred over the fair value of net assets acquired in business combinations. The following table summarizes the changes in the carrying amount of goodwill for the nine months ended October 31, 2023, (in millions): Balance as of January 31, 2023 $ 3,774 Less: accumulated impairment losses as of January 31, 2023 (149) Net balance as of January 31, 2023 3,625 Additions arising from acquisitions during the period 8 Effect of foreign currency translation (29) Balance as of October 31, 2023 $ 3,604 |
Deferred Compensation
Deferred Compensation | 9 Months Ended |
Oct. 31, 2023 | |
Deferred Compensation Arrangements [Abstract] | |
Deferred Compensation | Deferred Compensation At October 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 $90 million. Of this amount, $7 million was classified as current and $83 million was classified as non-current in the Condensed Consolidated Balance Sheets. Of the $86 million related to the investments in a rabbi trust as of January 31, 2023, $7 million was classified as current and $79 million was classified as non-current. The current and non-current asset portions of the investments in debt and equity securities that are held in a rabbi trust under non-qualified deferred compensation plans are recorded in the Condensed Consolidated Balance Sheets under “Prepaid expenses and other current assets” and “Long-term other assets,” respectively. The current and non-current portions of the liability are recorded in the Condensed Consolidated Balance Sheets under “Accrued compensation” and “Long-term other liabilities,” respectively. Costs to obtain a contract with a customer |
Computer Equipment, Software, F
Computer Equipment, Software, Furniture, and Leasehold Improvements, Net | 9 Months Ended |
Oct. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Computer Equipment, Software, Furniture, and Leasehold Improvements, Net | Computer Equipment, Software, Furniture, and Leasehold Improvements, Net Computer equipment, software, furniture and equipment, and leasehold improvements, and the related accumulated depreciation were as follows: October 31, 2023 January 31, 2023 Computer hardware, at cost $ 115 $ 126 Computer software, at cost 48 49 Furniture and equipment, at cost 98 94 Leasehold improvements, land and buildings, at cost 356 363 617 632 Less: Accumulated depreciation (489) (488) Computer equipment, software, furniture, and leasehold improvements, net $ 128 $ 144 |
Borrowing Arrangements
Borrowing Arrangements | 9 Months Ended |
Oct. 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 October 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 October 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 of debt due June 15, 2020 , 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 term of the 2015 Notes using the effective interest method. The proceeds of the 2015 Notes are available for general corporate purposes. 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 aforementioned notes, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the date of repurchase. All notes contain restrictive covenants that limit Autodesk's ability to create certain liens, to enter into certain sale and leaseback transactions and to consolidate or merge with, or convey, transfer, or lease all or substantially all of its assets, subject to important qualifications and exceptions. Based on the quoted market prices, the approximate fair value of the notes as of October 31, 2023, were as follows: Aggregate Principal Amount Fair value 2015 Notes $ 300 $ 293 2017 Notes 500 464 2020 Notes 500 418 2021 Notes 1,000 769 The expected future principal payments for all borrowings as of October 31, 2023, were as follows (in millions): Fiscal year ending 2024 (remainder) $ — 2025 — 2026 300 2027 — 2028 500 Thereafter 1,500 Total principal outstanding $ 2,300 |
Leases
Leases | 9 Months Ended |
Oct. 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 66 years, some of which include options to extend the lease with renewal terms from 1 year to 9 years and some of which include options to terminate the leases from less than 1 year to 6 years. 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. Payments under our lease arrangements are primarily fixed; however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities. These amounts include payments affected by the Consumer Price Index, payments for common area maintenance that are subject to annual reconciliation, and payments for maintenance and utilities. The Company’s leases do not contain residual value guarantees or material restrictive covenants. Short-term leases are recognized in the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term. Short-term lease expense was not material for the periods presented. Changes in operating lease right-of-use assets and operating lease liabilities are presented net in the “Accounts payable and other liabilities” line in the Condensed Consolidated Statements of Cash Flows with the exception of “Lease-related asset impairments” which is presented in “Adjustments to reconcile net income to net cash provided by operating activities”. The components of lease cost were as follows: Three Months Ended October 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 $ 2 $ 1 $ 7 $ 5 $ 2 $ 17 Variable lease cost 1 — 1 2 — 4 Nine Months Ended October 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 $ 5 $ 2 $ 22 $ 17 $ 7 $ 53 Variable lease cost 1 — 5 4 2 12 Three Months Ended October 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 $ 2 $ 1 $ 9 $ 7 $ 2 $ 21 Variable lease cost — — 2 1 1 4 Nine Months Ended October 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 $ 6 $ 3 $ 28 $ 21 $ 8 $ 66 Variable lease cost 1 — 5 4 2 12 Supplemental operating cash flow information related to leases is as follows: Nine Months Ended October 31, 2023 2022 Cash paid for operating leases included in operating cash flows (1) $ 81 $ 84 Non-cash operating lease liabilities arising from obtaining operating lease right-of-use assets 44 49 _______________ (1) Includes $12 million in variable lease payments for both the nine months ended October 31, 2023 and 2022, not included in “Operating lease liabilities” and “Long-term operating lease liabilities” on the Condensed Consolidated Balance Sheets. The weighted average remaining lease term for operating leases is 6.1 and 6.5 years at October 31, 2023, and January 31, 2023, respectively. The weighted average discount rate was 2.77% and 2.60% at October 31, 2023, and January 31, 2023, respectively. Maturities of operating lease liabilities were as follows: Fiscal year ending 2024 (remainder) $ 19 2025 88 2026 75 2027 55 2028 46 Thereafter 114 397 Less imputed interest 32 Present value of operating lease liabilities $ 365 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 8.3 years. Sublease income was $2 million and $6 million and for the three and nine months ended October 31, 2023, respectively. Sublease income was $2 million and $3 million for the three and nine months ended October 31, 2022, respectively. Sublease income is recorded as a reduction of lease expense in the Company’s Condensed Consolidated Statements of Operations. Operating lease amounts in the table above do not include sublease income payments of $73 million. Autodesk expects to receive sublease income payments of approximately $35 million for remaining fiscal 2024 through fiscal 2028 and $38 million thereafter. As of October 31, 2023, Autodesk had no material additional operating lease minimum lease payments for executed leases that have not yet commenced. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Oct. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The fair values of derivative instruments in Autodesk’s Condensed Consolidated Balance Sheets were as follows as of October 31, 2023, and January 31, 2023: Balance Sheet Location Fair Value at October 31, 2023 January 31, 2023 Derivative Assets Foreign currency contracts designated as cash flow hedges Prepaid expenses and other current assets $ 23 $ 9 Derivatives not designated as hedging instruments Prepaid expenses and other current assets 4 5 Total derivative assets $ 27 $ 14 Derivative Liabilities Foreign currency contracts designated as cash flow hedges Other accrued liabilities $ 14 $ 20 Derivatives not designated as hedging instruments Other accrued liabilities 4 11 Total derivative liabilities $ 18 $ 31 The effects of derivatives designated as hedging instruments on Autodesk’s Condensed Consolidated Statements of Operations were as follows for the three and nine months ended October 31, 2023 and 2022 (amounts presented include any income tax effects): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Amount of gain (loss) recognized in accumulated other comprehensive income, net of tax, (effective portion) $ 4 $ 26 $ (22) $ 99 Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) Net revenue $ 14 $ 19 $ 51 $ 36 Cost of revenue — (1) — (3) Operating expenses (2) (8) 1 (18) Total $ 12 $ 10 $ 52 $ 15 The amount and location of (loss) gain recognized in net income of derivatives not designated as hedging instruments on Autodesk’s Condensed Consolidated Statements of Operations were as follows for the three and nine months ended October 31, 2023 and 2022, (amounts presented include any income tax effects): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Interest and other expense, net $ (2) $ 4 $ 5 $ 34 Foreign currency contracts designated as cash flow hedges Autodesk uses foreign currency contracts to reduce the exchange rate impact on a portion of the net revenue or operating expense of certain anticipated transactions. These currency collars and forward contracts are designated and documented as cash flow hedges. The notional amounts of these contracts are presented net settled and were $1.08 billion at October 31, 2023, and $934 million at January 31, 2023. Outstanding contracts are recognized as either assets or liabilities on the Company's Condensed Consolidated Balance Sheet at fair value. The majority of the net gain of $42 million remaining in “Accumulated other comprehensive loss” as of October 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 Condensed Consolidated Statements of Operations where the effects of the hedge are recorded were as follows for the three and nine months ended October 31, 2023 and 2022: Three Months Ended October 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 condensed consolidated statements of operations $ 1,314 $ 12 $ 94 $ 439 $ 339 $ 165 Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 14 $ — $ — $ (1) $ — $ (1) Nine Months Ended October 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 condensed consolidated statements of operations in which the effects of cash flow hedges are recorded $ 3,777 $ 40 $ 285 $ 1,344 $ 1,021 $ 438 Gain on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of gain reclassified from accumulated other comprehensive income into income $ 51 $ — $ — $ — $ — $ 1 Three Months Ended October 31, 2022 Net Revenue Cost of revenue Operating expenses Subscription Revenue Maintenance Revenue Cost of subscription and maintenance revenue Marketing and sales Research and development General and administrative Total amounts of income and expense line items presented in the condensed consolidated statements of operations $ 1,188 $ 16 $ 86 $ 454 $ 311 $ 129 Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 19 $ — $ (1) $ (4) $ (2) $ (2) Nine Months Ended October 31, 2022 Net revenue Cost of revenue Operating expenses Subscription revenue Maintenance Revenue Cost of subscription and maintenance revenue Marketing and sales Research and development General and administrative Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded $ 3,437 $ 51 $ 253 $ 1,306 $ 906 $ 377 Gain (loss)on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 36 $ — $ (3) $ (9) $ (4) $ (5) Derivatives not designated as hedging instruments |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 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. Effective April 1, 2023, Autodesk entered into a renewed agreement with a third-party cloud services provider. Under the agreement, Autodesk committed to spend an aggregate of $750 million through March 31, 2028 on cloud services. Guarantees and Indemnifications In the normal course of business, Autodesk provides indemnifications of varying scopes, including limited product warranties and indemnification of customers against claims of intellectual property infringement made by third parties arising from the use of its products or services. Autodesk accrues for known indemnification issues if a loss is probable and can be reasonably estimated. Historically, costs related to these indemnifications have not been significant, and because potential future costs are highly variable, Autodesk is unable to estimate the maximum potential impact of these indemnifications on its future results of operations. In connection with the purchase, sale, or license of assets or businesses with third parties, Autodesk has entered into or assumed customary indemnification agreements related to the assets or businesses purchased, sold, or licensed. Historically, costs related to these indemnifications have not been significant, and because potential future costs are highly variable, Autodesk is unable to estimate the maximum potential impact of these indemnifications on its future results of operations. As permitted under Delaware law, Autodesk has agreements whereby it indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at Autodesk’s request in such capacity. The maximum potential amount of future payments Autodesk could be required to make under these indemnification agreements is unlimited; however, Autodesk has directors’ and officers’ liability insurance coverage that is intended to reduce its financial exposure and may enable Autodesk to recover a portion of any future amounts paid. Autodesk believes the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal. Legal Proceedings Autodesk is involved in a variety of claims, suits, investigations, inquiries, and proceedings in the normal course of business including claims of alleged infringement of intellectual property rights, commercial, employment, tax, prosecution of unauthorized use, business practices, and other matters. Autodesk routinely reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any matter is considered probable and the amount can be reasonably estimated, Autodesk records a liability for the estimated loss. Because of inherent uncertainties related to these legal matters, Autodesk bases its loss accruals on the best information available at the time. As additional information becomes available, Autodesk reassesses its potential liability and may revise its estimates. In the Company's opinion, resolution of pending matters is not expected to have a material adverse impact on its consolidated results of operations, cash flows, or its financial position. Given the unpredictable nature of legal proceedings, there is a reasonable possibility that an unfavorable resolution of one or more such proceedings could in the future materially affect the Company's results of operations, cash flows, or financial position in a particular period, however, based on the information known by the Company as of the date of this filing and the rules and regulations applicable to the preparation of the Company's financial statements, any such amount is either immaterial or it is not possible to provide an estimated amount of any such potential loss. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Oct. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Changes in stockholders' equity by component, net of tax, as of October 31, 2023, are as follows: Common stock and additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' equity Shares Amount Balances, January 31, 2023 215 $ 3,325 $ (185) $ (1,995) $ 1,145 Common shares issued under stock plans 2 (21) — — (21) Stock-based compensation expense — 160 — — 160 Settlement of liability-classified restricted common shares — 1 — — 1 Net income — — — 161 161 Other comprehensive loss — — (15) — (15) Repurchase and retirement of common shares (1) (3) (97) — (437) (534) Balances, April 30, 2023 214 3,368 (200) (2,271) 897 Common shares issued under stock plans — (31) — — (31) Stock-based compensation expense — 195 — — 195 Settlement of liability-classified restricted common shares — 8 — — 8 Net income — — — 222 222 Other comprehensive income — — 2 — 2 Repurchase and retirement of common shares (1) — (9) — (78) (87) Balances, July 31, 2023 214 3,531 (198) (2,127) 1,206 Common shares issued under stock plans 1 27 — — 27 Stock-based compensation expense — 179 — — 179 Net income — — — 241 241 Other comprehensive loss — — (59) — (59) Repurchase and retirement of common shares (1) (1) (59) — (53) (112) Balances, October 31, 2023 214 $ 3,678 $ (257) $ (1,939) $ 1,482 ________________ (1) During the three and nine months ended October 31, 2023, Autodesk repurchased 543 thousand and 4 million shares at an average repurchase price of $205.70 and $200.35 per share, respectively. At October 31, 2023, no shares remained available for repurchase under the September 2016 repurchase program. At October 31, 2023, $4.80 billion remained available for repurchase under the November 2022 repurchase program approved by the Board of Directors. Changes in stockholders' equity by component, net of tax, as of October 31, 2022, are as follows: Common stock and additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' equity Shares Amount Balances, January 31, 2022 218 $ 2,923 $ (124) $ (1,950) $ 849 Common shares issued under stock plans 1 (10) — — (10) Stock-based compensation expense — 146 — — 146 Shares issued related to business combination — 10 — — 10 Net income — — — 146 146 Other comprehensive loss — — (24) — (24) Repurchase and retirement of common shares (1) (2) (97) — (339) (436) Balances, April 30, 2022 217 2,972 (148) (2,143) 681 Common shares issued under stock plans — (17) — — (17) Stock-based compensation expense — 163 — — 163 Settlement of liability-classified restricted common shares — 5 — — 5 Net income — — — 186 186 Other comprehensive loss — — (21) — (21) Repurchase and retirement of common shares (1) (1) (34) — (223) (257) Balances, July 31, 2022 216 3,089 (169) (2,180) 740 Common shares issued under stock plans 1 18 — — 18 Stock-based compensation expense — 165 — — 165 Settlement of liability-classified restricted common shares — 3 — — 3 Net income — — — 198 198 Other comprehensive loss — — (38) — (38) Repurchase and retirement of common shares (1) (1) (62) — (118) (180) Balances, October 31, 2022 216 $ 3,213 $ (207) $ (2,100) $ 906 ________________ (1) During the three and nine months ended October 31, 2022, Autodesk repurchased 1 million and 4 million shares at an average repurchase price of $201.33 and $199.83 per share, respectively. At October 31, 2022, 4 million shares remained available for repurchase under the September 2016 repurchase program approved by the Board of Directors. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Oct. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, net of taxes, consisted of the following at October 31, 2023: Net Unrealized Gains (Losses) on Derivative Instruments Net Unrealized Gains (Losses) on Available-for-Sale Debt Securities Defined Benefit Pension Components Foreign Currency Translation Adjustments Total Balances, January 31, 2023 $ 64 $ 18 $ (19) $ (248) $ (185) Other comprehensive income before reclassifications 27 (1) 1 (53) (26) Pre-tax loss reclassified from accumulated other comprehensive loss (52) (1) (1) — (54) Tax effects 3 — — 5 8 Net current period other comprehensive loss (22) (2) — (48) (72) Balances, October 31, 2023 $ 42 $ 16 $ (19) $ (296) $ (257) Accumulated other comprehensive loss, net of taxes, consisted of the following at October 31, 2022: Net Unrealized Gains (Losses) on Derivative Instruments Net Unrealized Gains (Losses) on Available-for-Sale Debt Securities Defined Benefit Pension Components Foreign Currency Translation Adjustments Total Balances, January 31, 2022 $ 24 $ 18 $ (16) $ (150) $ (124) Other comprehensive income (loss) before reclassifications 131 3 (1) (186) (53) Pre-tax losses reclassified from accumulated other comprehensive loss (15) — 1 — (14) Tax effects (17) — — 1 (16) Net current period other comprehensive income (loss) 99 3 — (185) (83) Balances, October 31, 2022 $ 123 $ 21 $ (16) $ (335) $ (207) Reclassifications related to gains and losses on available-for-sale debt securities are included in “Interest and other expense, net.” Refer to Note 15, “Derivative Instruments,” for the amount and location of reclassifications related to derivative instruments. Reclassifications of the defined benefit pension components of net periodic benefit cost are included in “Interest and other expense, net.” |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Oct. 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 for the period. Diluted net income per share is computed using the weighted average number of shares of common stock outstanding for 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: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Numerator: Net income $ 241 $ 198 $ 624 $ 530 Denominator: Denominator for basic net income per share—weighted average shares 214 216 214 217 Effect of dilutive securities 2 1 2 1 Denominator for dilutive net income per share 216 217 216 218 Basic net income per share $ 1.13 $ 0.92 $ 2.92 $ 2.44 Diluted net income per share $ 1.12 $ 0.91 $ 2.89 $ 2.43 The computation of diluted net income per share does not include shares that are anti-dilutive under the treasury stock method because their exercise prices are higher than the average market value of Autodesk’s stock during the periods. For the three and nine months ended October 31, 2023, there were 141 thousand and 388 thousand anti-dilutive shares excluded from the computation of diluted net income per share, respectively. For the three and nine months ended October 31, 2022, there were 921 thousand and 1,052 thousand anti-dilutive shares excluded from the computation of diluted net income per share, respectively. |
Segments
Segments | 9 Months Ended |
Oct. 31, 2023 | |
Segment Reporting [Abstract] | |
Segments | Segments Autodesk operates in one operating segment and accordingly, all required financial segment information is included in the condensed consolidated financial statements. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision makers (“CODM”) in deciding how to allocate resources and assess performance. Autodesk reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions, allocating resources, and assessing performance as the source of the Company’s reportable segments. The Company’s CODM allocates resources and assesses the operating performance of the Company as a whole. Information regarding Autodesk’s long-lived assets by geographic area is as follows: October 31, 2023 January 31, 2023 Long-lived assets (1): Americas U.S. $ 244 $ 256 Other Americas 15 13 Total Americas 259 269 Europe, Middle East, and Africa 61 72 Asia Pacific 45 48 Total long-lived assets $ 365 $ 389 ____________________ (1) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Oct. 31, 2023 | Jul. 31, 2023 | Apr. 30, 2023 | Oct. 31, 2022 | Jul. 31, 2022 | Apr. 30, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net income | $ 241 | $ 222 | $ 161 | $ 198 | $ 186 | $ 146 | $ 624 | $ 530 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Oct. 31, 2023 shares | Oct. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Mary McDowell [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On September 13, 2023, Mary McDowell, one of our Directors, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 14,100 shares of our common stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until December 13, 2024, or earlier if all transactions under the trading arrangement are completed. | |
Name | Mary McDowell | |
Title | Directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | September 13, 2023 | |
Arrangement Duration | 457 days | |
Aggregate Available | 14,100 | 14,100 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Policies) | 9 Months Ended |
Oct. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements of Autodesk, Inc. (“Autodesk,” “we,” “us,” “our,” or the “Company”) as of October 31, 2023, and for the three and nine months ended October 31, 2023 and 2022, have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information along with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In management’s opinion, Autodesk made all adjustments (consisting of normal, recurring and non-recurring adjustments) during the quarter that were considered necessary for the fair statement of the financial position and operating results of the Company. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. In addition, the results of operations for the three and nine months ended October 31, 2023, are not necessarily indicative of the results for the entire fiscal year ending January 31, 2024, or for any other period. Further, the balance sheet as of January 31, 2023, has been derived from the audited Consolidated Balance Sheet as of this date. There have been no material changes, other than what is discussed herein, to Autodesk's significant accounting policies as compared to the significant accounting policies disclosed in the Annual Report on Form 10-K for the fiscal year ended January 31, 2023. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes, together with management’s discussion and analysis of financial position and results of operations, contained in Autodesk’s Annual Report on Form 10-K for the fiscal year ended January 31, 2023, filed on March 14, 2023. |
Recently Issued Accounting Standards | With the exception of those discussed below, there have been no recent changes in accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) or adopted by the Company during the nine months ended October 31, 2023, that are applicable to the Company. Recently Issued Accounting Standards But Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which are intended to improve reportable segment disclosure requirements. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for Autodesk’s fiscal year beginning February 1, 2024, and interim periods for Autodesk’s fiscal year beginning February 1, 2025, and should be applied on a retrospective basis to all periods presented. Autodesk is currently evaluating the effect of adopting ASU 2023-07 on its disclosures. Accounting Standards 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 adopted ASU 2022-03 as of February 1, 2023. The adoption of ASU 2022-03 did not have a material impact on Autodesk’s consolidated financial statements. |
Revenue Recognition | Revenue Disaggregation |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Oct. 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 is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Net revenue by product family: Architecture, Engineering and Construction $ 675 $ 575 $ 1,884 $ 1,676 AutoCAD and AutoCAD LT 372 354 1,085 1,025 Manufacturing 269 254 771 721 Media and Entertainment 73 78 218 217 Other 25 19 70 48 Total net revenue $ 1,414 $ 1,280 $ 4,028 $ 3,687 Net revenue by geographic area: Americas U.S. $ 520 $ 447 $ 1,461 $ 1,269 Other Americas 120 94 321 271 Total Americas 640 541 1,782 1,540 Europe, Middle East and Africa 516 476 1,496 1,398 Asia Pacific 258 263 750 749 Total net revenue $ 1,414 $ 1,280 $ 4,028 $ 3,687 Net revenue by sales channel: Indirect $ 876 $ 827 $ 2,546 $ 2,412 Direct 538 453 1,482 1,275 Total net revenue $ 1,414 $ 1,280 $ 4,028 $ 3,687 Net revenue by product type: Design $ 1,192 $ 1,087 $ 3,432 $ 3,155 Make 134 117 385 333 Other 88 76 211 199 Total net revenue $ 1,414 $ 1,280 $ 4,028 $ 3,687 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Company's Financial Instruments by Significant Investment Category | The following tables summarize the Company's financial instruments by significant investment category as of October 31, 2023, and January 31, 2023: October 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents (1): Money market funds $ 546 $ — $ — $ 546 Commercial paper 257 — — 257 Certificates of deposit 69 — — 69 Other (2) 14 — — 14 Marketable securities: Short-term Commercial paper 207 — — 207 U.S. government securities 90 — — 90 Corporate debt securities 71 — — 71 Asset-backed securities 32 — — 32 Agency discount notes 11 — — 11 Other (3) 17 — — 17 Long-term Corporate debt securities 97 — (1) 96 Asset-backed securities 55 — (1) 54 Agency mortgage backed securities 35 — (1) 34 U.S. government securities 23 — — 23 Other (4) 12 — — 12 Mutual funds (5) (6) 87 6 (3) 90 Total $ 1,623 $ 6 $ (6) $ 1,623 ___________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Primarily consists of U.S. government securities and mortgage-backed securities. (3) Primarily consists of supranational bonds, mortgage-backed securities, agency bonds, and certificates of deposit . (4) Consists of agency bonds, agency collateralized mortgage obligations, and mortgage-backed securities. (5) See Note 11, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. 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 Condensed 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 11, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets,” or “Long-term other assets,” in the accompanying Condensed 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 October 31, 2023: Fair Value Due within 1 year $ 401 Due in 1 year through 5 years 203 Due in 5 years through 10 years 15 Due after 10 years 28 Total $ 647 |
Schedule of Marketable Securities | Proceeds from the sale and maturity of marketable debt securities were as follows: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Marketable debt securities $ 190 $ 57 $ 529 $ 302 |
Schedule of Equity Securities Without Readily Determinable Fair Value | Adjustments to the carrying value of our strategic investment equity securities with no readily determined fair values measured using the measurement alternative are included in “Interest and other expense, net” on the Company's Condensed Consolidated Statements of Operations. These adjustments were as follows: Nine Months Ended October 31, Cumulative Amount as of 2023 2022 October 31, 2023 Upward adjustments $ — $ 6 $ 29 Negative adjustments, including impairments (21) (5) (107) Net unrealized adjustments $ (21) $ 1 $ (78) |
Fair Value, by Balance Sheet Grouping | The following tables summarize the Company's financial instruments measured at fair value on a recurring basis by significant investment category as of October 31, 2023, and January 31, 2023: October 31, 2023 Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1): Money market funds $ 546 $ — $ — $ 546 Commercial paper — 257 — 257 Certificates of deposit — 69 — 69 Other (2) — 14 — 14 Marketable securities: Short-term Commercial paper — 207 — 207 U.S. government securities — 90 — 90 Corporate debt securities — 71 — 71 Asset-backed securities — 32 — 32 Agency discount notes — 11 — 11 Other (3) — 17 — 17 Long-term Corporate debt securities — 96 — 96 Asset-backed securities — 54 — 54 Agency mortgage backed securities — 34 — 34 U.S. government securities — 23 — 23 Other (4) — 12 — 12 Long-term other assets: Mutual funds (5)(6) 90 — — 90 Derivative assets: Derivative contract assets (6) — 27 — 27 Derivative liabilities: Derivative contract liabilities (7) — (18) — (18) Total $ 636 $ 996 $ — $ 1,632 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Primarily consists of U.S. government securities and mortgage-backed securities. (3) Primarily consists of supranational bonds, mortgage-backed securities, agency bonds, and certificates of deposit . (4) Consists of agency bonds, agency collateralized mortgage obligations, and mortgage-backed securities. (5) See Note 11, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. (7) Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets. January 31, 2023 Level 1 Level 2 Level 3 Total Assets: 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 Condensed 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 11, “Deferred Compensation” for more information. (6) Included in “Prepaid expenses and other current assets,” or “Long-term other assets,” in the accompanying Condensed Consolidated Balance Sheets. (7) |
Equity Compensation (Tables)
Equity Compensation (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Summary of Restricted Stock Activity | A summary of restricted stock activity for the nine months ended October 31, 2023, is as follows: Unvested Weighted (in thousands) Unvested restricted stock units at January 31, 2023 4,848 $ 216.20 Granted 3,544 199.54 Vested (2,334) 216.56 Canceled/Forfeited (261) 212.95 Performance Adjustment (1) (11) 189.41 Unvested restricted stock units at October 31, 2023 5,786 $ 205.98 _______________ (1) |
Schedule of Summary of the ESPP Activity | A summary of the ESPP activity for the three and nine months October 31, 2023 and 2022, is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Issued shares (in thousands) 357 363 791 740 Average price of issued shares $ 164.30 $ 158.78 $ 163.91 $ 166.44 Weighted average grant date fair value of shares granted under the ESPP (1) $ 67.29 $ 66.43 $ 68.70 $ 67.77 _______________ (1) |
Schedule of Stock-based Compensation Expense | The following table summarizes stock-based compensation expense for the three and nine months ended October 31, 2023 and 2022, as follows: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Cost of subscription and maintenance revenue $ 9 $ 9 $ 28 $ 26 Cost of other revenue 4 3 11 9 Marketing and sales 66 68 202 199 Research and development 78 71 233 199 General and administrative 24 21 69 63 Stock-based compensation expense related to stock awards and ESPP purchases 181 172 543 496 Tax (benefit) expense (2) (2) 1 7 Stock-based compensation expense related to stock awards and ESPP purchases, net of tax $ 179 $ 170 $ 544 $ 503 |
Schedule of Assumptions to Estimate the Fair Value of Stock-based Awards | Autodesk uses the following assumptions to estimate the fair value of stock-based awards: Three Months Ended October 31, 2023 Three Months Ended October 31, 2022 Performance Stock Units ESPP Performance Stock Units ESPP Range of expected volatility N/A 29.4 - 37.4% N/A 40.7 - 44.9% Range of expected lives (in years) N/A 0.5- 2.0 N/A 0.5 - 2.0 Expected dividends N/A —% N/A —% Range of risk-free interest rates N/A 5.0 -5.5% N/A 3.7 - 3.9% Nine Months Ended October 31, 2023 Nine Months Ended October 31, 2022 Performance Stock Units ESPP Performance Stock Units ESPP Range of expected volatilities 40.9 - 42.5% 29.4 - 42.4% 39.4 - 40.7% 38.3 - 44.9% Range of expected lives (in years) N/A 0.5 - 2.0 N/A 0.5 - 2.0 Expected dividends —% —% —% —% Range of risk-free interest rates 4.3 - 4.7% 4.3 - 5.5% 1.2 - 1.6% 0.9 - 3.9% |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-lived Intangible Assets | The following tables summarize the Company's intangible assets, net, as of October 31, 2023, and January 31, 2023: October 31, 2023 Gross Carrying Amount (1) Accumulated Amortization Net Customer relationships $ 663 $ (426) $ 237 Developed technologies 920 (750) 170 Trade names and patents 115 (111) 4 Other 1 (1) — Total intangible assets $ 1,699 $ (1,288) $ 411 _______________ (1) Includes the effects of foreign currency translation. January 31, 2023 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. |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the changes in the carrying amount of goodwill for the nine months ended October 31, 2023, (in millions): Balance as of January 31, 2023 $ 3,774 Less: accumulated impairment losses as of January 31, 2023 (149) Net balance as of January 31, 2023 3,625 Additions arising from acquisitions during the period 8 Effect of foreign currency translation (29) Balance as of October 31, 2023 $ 3,604 |
Computer Equipment, Software,_2
Computer Equipment, Software, Furniture, and Leasehold Improvements, Net (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Computer Equipment, Software, Furniture and Equipment, and Leasehold Improvements and the Related Accumulated Depreciation | Computer equipment, software, furniture and equipment, and leasehold improvements, and the related accumulated depreciation were as follows: October 31, 2023 January 31, 2023 Computer hardware, at cost $ 115 $ 126 Computer software, at cost 48 49 Furniture and equipment, at cost 98 94 Leasehold improvements, land and buildings, at cost 356 363 617 632 Less: Accumulated depreciation (489) (488) Computer equipment, software, furniture, and leasehold improvements, net $ 128 $ 144 |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 9 Months Ended |
Oct. 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 October 31, 2023, were as follows: Aggregate Principal Amount Fair value 2015 Notes $ 300 $ 293 2017 Notes 500 464 2020 Notes 500 418 2021 Notes 1,000 769 |
Schedule of Future Minimum Payments For Borrowings | The expected future principal payments for all borrowings as of October 31, 2023, were as follows (in millions): Fiscal year ending 2024 (remainder) $ — 2025 — 2026 300 2027 — 2028 500 Thereafter 1,500 Total principal outstanding $ 2,300 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost and Cash Flow Information | The components of lease cost were as follows: Three Months Ended October 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 $ 2 $ 1 $ 7 $ 5 $ 2 $ 17 Variable lease cost 1 — 1 2 — 4 Nine Months Ended October 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 $ 5 $ 2 $ 22 $ 17 $ 7 $ 53 Variable lease cost 1 — 5 4 2 12 Three Months Ended October 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 $ 2 $ 1 $ 9 $ 7 $ 2 $ 21 Variable lease cost — — 2 1 1 4 Nine Months Ended October 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 $ 6 $ 3 $ 28 $ 21 $ 8 $ 66 Variable lease cost 1 — 5 4 2 12 Supplemental operating cash flow information related to leases is as follows: Nine Months Ended October 31, 2023 2022 Cash paid for operating leases included in operating cash flows (1) $ 81 $ 84 Non-cash operating lease liabilities arising from obtaining operating lease right-of-use assets 44 49 _______________ (1) Includes $12 million in variable lease payments for both the nine months ended October 31, 2023 and 2022, not included in “Operating lease liabilities” and “Long-term operating lease liabilities” on the Condensed Consolidated Balance Sheets. |
Schedule of Future Minimum Lease Payments | Maturities of operating lease liabilities were as follows: Fiscal year ending 2024 (remainder) $ 19 2025 88 2026 75 2027 55 2028 46 Thereafter 114 397 Less imputed interest 32 Present value of operating lease liabilities $ 365 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Instruments in Autodesk’s Condensed Consolidated Balance Sheets | The fair values of derivative instruments in Autodesk’s Condensed Consolidated Balance Sheets were as follows as of October 31, 2023, and January 31, 2023: Balance Sheet Location Fair Value at October 31, 2023 January 31, 2023 Derivative Assets Foreign currency contracts designated as cash flow hedges Prepaid expenses and other current assets $ 23 $ 9 Derivatives not designated as hedging instruments Prepaid expenses and other current assets 4 5 Total derivative assets $ 27 $ 14 Derivative Liabilities Foreign currency contracts designated as cash flow hedges Other accrued liabilities $ 14 $ 20 Derivatives not designated as hedging instruments Other accrued liabilities 4 11 Total derivative liabilities $ 18 $ 31 |
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 Condensed Consolidated Statements of Operations were as follows for the three and nine months ended October 31, 2023 and 2022 (amounts presented include any income tax effects): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Amount of gain (loss) recognized in accumulated other comprehensive income, net of tax, (effective portion) $ 4 $ 26 $ (22) $ 99 Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) Net revenue $ 14 $ 19 $ 51 $ 36 Cost of revenue — (1) — (3) Operating expenses (2) (8) 1 (18) Total $ 12 $ 10 $ 52 $ 15 The amount and location of (loss) gain recognized in net income of derivatives not designated as hedging instruments on Autodesk’s Condensed Consolidated Statements of Operations were as follows for the three and nine months ended October 31, 2023 and 2022, (amounts presented include any income tax effects): Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Interest and other expense, net $ (2) $ 4 $ 5 $ 34 |
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 Condensed Consolidated Statements of Operations where the effects of the hedge are recorded were as follows for the three and nine months ended October 31, 2023 and 2022: Three Months Ended October 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 condensed consolidated statements of operations $ 1,314 $ 12 $ 94 $ 439 $ 339 $ 165 Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 14 $ — $ — $ (1) $ — $ (1) Nine Months Ended October 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 condensed consolidated statements of operations in which the effects of cash flow hedges are recorded $ 3,777 $ 40 $ 285 $ 1,344 $ 1,021 $ 438 Gain on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of gain reclassified from accumulated other comprehensive income into income $ 51 $ — $ — $ — $ — $ 1 Three Months Ended October 31, 2022 Net Revenue Cost of revenue Operating expenses Subscription Revenue Maintenance Revenue Cost of subscription and maintenance revenue Marketing and sales Research and development General and administrative Total amounts of income and expense line items presented in the condensed consolidated statements of operations $ 1,188 $ 16 $ 86 $ 454 $ 311 $ 129 Gain (loss) on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 19 $ — $ (1) $ (4) $ (2) $ (2) Nine Months Ended October 31, 2022 Net revenue Cost of revenue Operating expenses Subscription revenue Maintenance Revenue Cost of subscription and maintenance revenue Marketing and sales Research and development General and administrative Total amounts of income and expense line items presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded $ 3,437 $ 51 $ 253 $ 1,306 $ 906 $ 377 Gain (loss)on cash flow hedging relationships in Subtopic ASC 815-20 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 36 $ — $ (3) $ (9) $ (4) $ (5) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Equity [Abstract] | |
Schedule of Changes in Stockholders' Deficit by Component, Net of Tax | Changes in stockholders' equity by component, net of tax, as of October 31, 2023, are as follows: Common stock and additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' equity Shares Amount Balances, January 31, 2023 215 $ 3,325 $ (185) $ (1,995) $ 1,145 Common shares issued under stock plans 2 (21) — — (21) Stock-based compensation expense — 160 — — 160 Settlement of liability-classified restricted common shares — 1 — — 1 Net income — — — 161 161 Other comprehensive loss — — (15) — (15) Repurchase and retirement of common shares (1) (3) (97) — (437) (534) Balances, April 30, 2023 214 3,368 (200) (2,271) 897 Common shares issued under stock plans — (31) — — (31) Stock-based compensation expense — 195 — — 195 Settlement of liability-classified restricted common shares — 8 — — 8 Net income — — — 222 222 Other comprehensive income — — 2 — 2 Repurchase and retirement of common shares (1) — (9) — (78) (87) Balances, July 31, 2023 214 3,531 (198) (2,127) 1,206 Common shares issued under stock plans 1 27 — — 27 Stock-based compensation expense — 179 — — 179 Net income — — — 241 241 Other comprehensive loss — — (59) — (59) Repurchase and retirement of common shares (1) (1) (59) — (53) (112) Balances, October 31, 2023 214 $ 3,678 $ (257) $ (1,939) $ 1,482 ________________ (1) During the three and nine months ended October 31, 2023, Autodesk repurchased 543 thousand and 4 million shares at an average repurchase price of $205.70 and $200.35 per share, respectively. At October 31, 2023, no shares remained available for repurchase under the September 2016 repurchase program. At October 31, 2023, $4.80 billion remained available for repurchase under the November 2022 repurchase program approved by the Board of Directors. Changes in stockholders' equity by component, net of tax, as of October 31, 2022, are as follows: Common stock and additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' equity Shares Amount Balances, January 31, 2022 218 $ 2,923 $ (124) $ (1,950) $ 849 Common shares issued under stock plans 1 (10) — — (10) Stock-based compensation expense — 146 — — 146 Shares issued related to business combination — 10 — — 10 Net income — — — 146 146 Other comprehensive loss — — (24) — (24) Repurchase and retirement of common shares (1) (2) (97) — (339) (436) Balances, April 30, 2022 217 2,972 (148) (2,143) 681 Common shares issued under stock plans — (17) — — (17) Stock-based compensation expense — 163 — — 163 Settlement of liability-classified restricted common shares — 5 — — 5 Net income — — — 186 186 Other comprehensive loss — — (21) — (21) Repurchase and retirement of common shares (1) (1) (34) — (223) (257) Balances, July 31, 2022 216 3,089 (169) (2,180) 740 Common shares issued under stock plans 1 18 — — 18 Stock-based compensation expense — 165 — — 165 Settlement of liability-classified restricted common shares — 3 — — 3 Net income — — — 198 198 Other comprehensive loss — — (38) — (38) Repurchase and retirement of common shares (1) (1) (62) — (118) (180) Balances, October 31, 2022 216 $ 3,213 $ (207) $ (2,100) $ 906 ________________ (1) During the three and nine months ended October 31, 2022, Autodesk repurchased 1 million and 4 million shares at an average repurchase price of $201.33 and $199.83 per share, respectively. At October 31, 2022, 4 million shares remained available for repurchase under the September 2016 repurchase program approved by the Board of Directors. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss, Net of Taxes | Accumulated other comprehensive loss, net of taxes, consisted of the following at October 31, 2023: Net Unrealized Gains (Losses) on Derivative Instruments Net Unrealized Gains (Losses) on Available-for-Sale Debt Securities Defined Benefit Pension Components Foreign Currency Translation Adjustments Total Balances, January 31, 2023 $ 64 $ 18 $ (19) $ (248) $ (185) Other comprehensive income before reclassifications 27 (1) 1 (53) (26) Pre-tax loss reclassified from accumulated other comprehensive loss (52) (1) (1) — (54) Tax effects 3 — — 5 8 Net current period other comprehensive loss (22) (2) — (48) (72) Balances, October 31, 2023 $ 42 $ 16 $ (19) $ (296) $ (257) Accumulated other comprehensive loss, net of taxes, consisted of the following at October 31, 2022: Net Unrealized Gains (Losses) on Derivative Instruments Net Unrealized Gains (Losses) on Available-for-Sale Debt Securities Defined Benefit Pension Components Foreign Currency Translation Adjustments Total Balances, January 31, 2022 $ 24 $ 18 $ (16) $ (150) $ (124) Other comprehensive income (loss) before reclassifications 131 3 (1) (186) (53) Pre-tax losses reclassified from accumulated other comprehensive loss (15) — 1 — (14) Tax effects (17) — — 1 (16) Net current period other comprehensive income (loss) 99 3 — (185) (83) Balances, October 31, 2022 $ 123 $ 21 $ (16) $ (335) $ (207) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Oct. 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: Three Months Ended October 31, Nine Months Ended October 31, 2023 2022 2023 2022 Numerator: Net income $ 241 $ 198 $ 624 $ 530 Denominator: Denominator for basic net income per share—weighted average shares 214 216 214 217 Effect of dilutive securities 2 1 2 1 Denominator for dilutive net income per share 216 217 216 218 Basic net income per share $ 1.13 $ 0.92 $ 2.92 $ 2.44 Diluted net income per share $ 1.12 $ 0.91 $ 2.89 $ 2.43 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Oct. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Long-lived Assets by Geographic Areas | Information regarding Autodesk’s long-lived assets by geographic area is as follows: October 31, 2023 January 31, 2023 Long-lived assets (1): Americas U.S. $ 244 $ 256 Other Americas 15 13 Total Americas 259 269 Europe, Middle East, and Africa 61 72 Asia Pacific 45 48 Total long-lived assets $ 365 $ 389 ____________________ (1) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 USD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2023 USD ($) category | Oct. 31, 2022 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Number of revenue categories | category | 3 | |||
Contract with customer, liability, revenue recognized | $ 730 | $ 642 | $ 2,710 | $ 2,460 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-01 | Period One | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligation | $ 5,240 | $ 5,240 | ||
Performance obligation, expected timing of satisfaction | 3 years | 3 years | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-01 | Period Two | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligation | $ 3,520 | $ 3,520 | ||
Performance obligation, expected timing of satisfaction | 12 months | 12 months | ||
Remaining performance obligation percentage | 67% | 67% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-11-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligation | $ 1,720 | $ 1,720 | ||
Performance obligation, expected timing of satisfaction | ||||
Remaining performance obligation percentage | 33% | 33% | ||
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 | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | $ 1,414 | $ 1,280 | $ 4,028 | $ 3,687 |
Design | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 1,192 | 1,087 | 3,432 | 3,155 |
Make | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 134 | 117 | 385 | 333 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 88 | 76 | 211 | 199 |
Indirect | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 876 | 827 | 2,546 | 2,412 |
Direct | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 538 | 453 | 1,482 | 1,275 |
Total Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 640 | 541 | 1,782 | 1,540 |
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 520 | 447 | 1,461 | 1,269 |
Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 120 | 94 | 321 | 271 |
Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 516 | 476 | 1,496 | 1,398 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 258 | 263 | 750 | 749 |
Architecture, Engineering and Construction | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 675 | 575 | 1,884 | 1,676 |
AutoCAD and AutoCAD LT | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 372 | 354 | 1,085 | 1,025 |
Manufacturing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 269 | 254 | 771 | 721 |
Media and Entertainment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 73 | 78 | 218 | 217 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | $ 25 | $ 19 | $ 70 | $ 48 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) - USD ($) $ in Billions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2023 | Nov. 30, 2022 | |
Tech Data | Net Revenue | Customer Concentration Risk | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk (in percentage) | 39% | 37% | 40% | 37% | ||
Tech Data | Accounts Receivable | Customer Concentration Risk | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk (in percentage) | 18% | 27% | ||||
Ingram Micro | Net Revenue | Customer Concentration Risk | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk (in percentage) | 7% | 9% | 8% | 9% | ||
Revolving Credit Facility | The Credit Agreement | ||||||
Concentration Risk [Line Items] | ||||||
Maximum borrowing capacity | $ 1.5 |
Financial Instruments - Cost an
Financial Instruments - Cost and Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Jan. 31, 2023 |
Cash equivalents | ||
Amortized Cost | $ 1,526 | $ 1,947 |
Long-term | ||
Total, amortized cost | 1,623 | 1,279 |
Total, Gross unrealized gains | 6 | 7 |
Total, Gross unrealized losses | (6) | (5) |
Total, fair value | 1,623 | 1,281 |
Commercial paper | ||
Short-term | ||
Amortized Cost | 207 | 42 |
Marketable securities, short-term | 207 | 42 |
U.S. government securities | ||
Short-term | ||
Amortized Cost | 90 | 17 |
Marketable securities, short-term | 90 | 17 |
Long-term | ||
Amortized Cost | 23 | 35 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Marketable securities, long-term | 23 | 35 |
Corporate debt securities | ||
Short-term | ||
Amortized Cost | 71 | 44 |
Marketable securities, short-term | 71 | 44 |
Long-term | ||
Amortized Cost | 97 | 45 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | 0 |
Marketable securities, long-term | 96 | 45 |
Asset-backed securities | ||
Short-term | ||
Amortized Cost | 32 | 19 |
Marketable securities, short-term | 32 | 19 |
Long-term | ||
Amortized Cost | 55 | 13 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | 0 |
Marketable securities, long-term | 54 | 13 |
Agency discount notes | ||
Short-term | ||
Amortized Cost | 11 | |
Marketable securities, short-term | 11 | |
Other | ||
Short-term | ||
Amortized Cost | 17 | 3 |
Marketable securities, short-term | 17 | 3 |
Long-term | ||
Amortized Cost | 12 | 9 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Marketable securities, long-term | 12 | 9 |
Agency mortgage backed securities | ||
Long-term | ||
Amortized Cost | 35 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1) | |
Marketable securities, long-term | 34 | |
Mutual funds | ||
Long-term | ||
Other investments | 87 | 81 |
Other investments, gross unrealized gains | 6 | 6 |
Other investments, gross unrealized losses | (3) | (1) |
Other investments, fair value | 90 | 86 |
Convertible debt securities | ||
Long-term | ||
Other investments | 3 | |
Other investments, gross unrealized gains | 1 | |
Other investments, gross unrealized losses | (2) | |
Other investments, fair value | 2 | |
Strategic investments derivative asset | ||
Long-term | ||
Other investments | 2 | |
Other investments, gross unrealized gains | 0 | |
Other investments, gross unrealized losses | (2) | |
Other investments, fair value | 0 | |
Money market funds | ||
Cash equivalents | ||
Amortized Cost | 546 | 737 |
Cash equivalents, fair value | 546 | 737 |
Commercial paper | ||
Cash equivalents | ||
Amortized Cost | 257 | 169 |
Cash equivalents, fair value | 257 | 169 |
Certificates of deposit | ||
Cash equivalents | ||
Amortized Cost | 69 | 35 |
Cash equivalents, fair value | 69 | 35 |
Other | ||
Cash equivalents | ||
Amortized Cost | 14 | 12 |
Cash equivalents, fair value | $ 14 | 12 |
U.S. government securities | ||
Cash equivalents | ||
Amortized Cost | 13 | |
Cash equivalents, fair value | $ 13 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Investments Classified by Contractual Maturity Date (Details) $ in Millions | Oct. 31, 2023 USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Due within 1 year | $ 401 |
Due in 1 year through 5 years | 203 |
Due in 5 years through 10 years | 15 |
Due after 10 years | 28 |
Total | $ 647 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |||
Allowance for credit loss | $ 0 | $ 0 | |
Write offs of accrued interest receivables | 0 | $ 0 | |
Direct investments in privately held companies | $ 167,000,000 | $ 177,000,000 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of marketable securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Marketable debt securities | $ 190 | $ 57 | $ 529 | $ 302 |
Financial Instruments - Non-Mar
Financial Instruments - Non-Marketable Equity Securities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Equity Securities without Readily Determinable Fair Value, Annual Amount [Abstract] | ||
Upward adjustments | $ 0 | $ 6 |
Negative adjustments, including impairments | (21) | (5) |
Net unrealized adjustments | (21) | $ 1 |
Equity Securities without Readily Determinable Fair Value, Impairment Loss, Cumulative Amount [Abstract] | ||
Upward adjustments | 29 | |
Negative adjustments, including impairments | (107) | |
Net unrealized adjustments | $ (78) |
Financial Instruments - Measure
Financial Instruments - Measured At Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Jan. 31, 2023 |
Long-term | ||
Derivative contract liabilities | $ (18) | $ (31) |
Total | 1,632 | 1,264 |
Derivative contract assets | ||
Long-term | ||
Derivative contract assets, fair value | 27 | 14 |
Commercial paper | ||
Short-term | ||
Marketable securities, short-term | 207 | 42 |
U.S. government securities | ||
Short-term | ||
Marketable securities, short-term | 90 | 17 |
Long-term | ||
Marketable securities, long-term | 23 | 35 |
Corporate debt securities | ||
Short-term | ||
Marketable securities, short-term | 71 | 44 |
Long-term | ||
Marketable securities, long-term | 96 | 45 |
Asset-backed securities | ||
Short-term | ||
Marketable securities, short-term | 32 | 19 |
Long-term | ||
Marketable securities, long-term | 54 | 13 |
Agency discount notes | ||
Short-term | ||
Marketable securities, short-term | 11 | |
Other | ||
Short-term | ||
Marketable securities, short-term | 17 | 3 |
Long-term | ||
Marketable securities, long-term | 12 | 9 |
Agency mortgage backed securities | ||
Long-term | ||
Marketable securities, long-term | 34 | |
Mutual funds | ||
Long-term | ||
Long-term other assets, fair value | 90 | 86 |
Convertible debt securities | ||
Long-term | ||
Long-term other assets, fair value | 2 | |
Money market funds | ||
Cash equivalents | ||
Cash equivalents, fair value | 546 | 737 |
Commercial paper | ||
Cash equivalents | ||
Cash equivalents, fair value | 257 | 169 |
Certificates of deposit | ||
Cash equivalents | ||
Cash equivalents, fair value | 69 | 35 |
Other | ||
Cash equivalents | ||
Cash equivalents, fair value | 14 | 12 |
U.S. government securities | ||
Cash equivalents | ||
Cash equivalents, fair value | 13 | |
Level 1 | ||
Long-term | ||
Derivative contract liabilities | 0 | 0 |
Total | 636 | 827 |
Level 1 | Derivative contract assets | ||
Long-term | ||
Derivative contract assets, fair value | 0 | 0 |
Level 1 | Commercial paper | ||
Short-term | ||
Marketable securities, short-term | 0 | 0 |
Level 1 | U.S. government securities | ||
Short-term | ||
Marketable securities, short-term | 0 | 0 |
Long-term | ||
Marketable securities, long-term | 0 | 0 |
Level 1 | Corporate debt securities | ||
Short-term | ||
Marketable securities, short-term | 0 | 0 |
Long-term | ||
Marketable securities, long-term | 0 | 0 |
Level 1 | Asset-backed securities | ||
Short-term | ||
Marketable securities, short-term | 0 | 0 |
Long-term | ||
Marketable securities, long-term | 0 | 0 |
Level 1 | Agency discount notes | ||
Short-term | ||
Marketable securities, short-term | 0 | |
Level 1 | Other | ||
Short-term | ||
Marketable securities, short-term | 0 | 0 |
Long-term | ||
Marketable securities, long-term | 0 | 0 |
Level 1 | Agency mortgage backed securities | ||
Long-term | ||
Marketable securities, long-term | 0 | |
Level 1 | Mutual funds | ||
Long-term | ||
Long-term other assets, fair value | 90 | 86 |
Level 1 | Convertible debt securities | ||
Long-term | ||
Long-term other assets, fair value | 0 | |
Level 1 | Money market funds | ||
Cash equivalents | ||
Cash equivalents, fair value | 546 | 737 |
Level 1 | Commercial paper | ||
Cash equivalents | ||
Cash equivalents, fair value | 0 | 0 |
Level 1 | Certificates of deposit | ||
Cash equivalents | ||
Cash equivalents, fair value | 0 | 0 |
Level 1 | Other | ||
Cash equivalents | ||
Cash equivalents, fair value | 0 | 4 |
Level 1 | U.S. government securities | ||
Cash equivalents | ||
Cash equivalents, fair value | 0 | |
Level 2 | ||
Long-term | ||
Derivative contract liabilities | (18) | (31) |
Total | 996 | 435 |
Level 2 | Derivative contract assets | ||
Long-term | ||
Derivative contract assets, fair value | 27 | 14 |
Level 2 | Commercial paper | ||
Short-term | ||
Marketable securities, short-term | 207 | 42 |
Level 2 | U.S. government securities | ||
Short-term | ||
Marketable securities, short-term | 90 | 17 |
Long-term | ||
Marketable securities, long-term | 23 | 35 |
Level 2 | Corporate debt securities | ||
Short-term | ||
Marketable securities, short-term | 71 | 44 |
Long-term | ||
Marketable securities, long-term | 96 | 45 |
Level 2 | Asset-backed securities | ||
Short-term | ||
Marketable securities, short-term | 32 | 19 |
Long-term | ||
Marketable securities, long-term | 54 | 13 |
Level 2 | Agency discount notes | ||
Short-term | ||
Marketable securities, short-term | 11 | |
Level 2 | Other | ||
Short-term | ||
Marketable securities, short-term | 17 | 3 |
Long-term | ||
Marketable securities, long-term | 12 | 9 |
Level 2 | Agency mortgage backed securities | ||
Long-term | ||
Marketable securities, long-term | 34 | |
Level 2 | Mutual funds | ||
Long-term | ||
Long-term other assets, fair value | 0 | 0 |
Level 2 | Convertible debt securities | ||
Long-term | ||
Long-term other assets, fair value | 0 | |
Level 2 | Money market funds | ||
Cash equivalents | ||
Cash equivalents, fair value | 0 | 0 |
Level 2 | Commercial paper | ||
Cash equivalents | ||
Cash equivalents, fair value | 257 | 169 |
Level 2 | Certificates of deposit | ||
Cash equivalents | ||
Cash equivalents, fair value | 69 | 35 |
Level 2 | Other | ||
Cash equivalents | ||
Cash equivalents, fair value | 14 | 8 |
Level 2 | U.S. government securities | ||
Cash equivalents | ||
Cash equivalents, fair value | 13 | |
Level 3 | ||
Long-term | ||
Derivative contract liabilities | 0 | 0 |
Total | 0 | 2 |
Level 3 | Derivative contract assets | ||
Long-term | ||
Derivative contract assets, fair value | 0 | 0 |
Level 3 | Commercial paper | ||
Short-term | ||
Marketable securities, short-term | 0 | 0 |
Level 3 | U.S. government securities | ||
Short-term | ||
Marketable securities, short-term | 0 | 0 |
Long-term | ||
Marketable securities, long-term | 0 | 0 |
Level 3 | Corporate debt securities | ||
Short-term | ||
Marketable securities, short-term | 0 | 0 |
Long-term | ||
Marketable securities, long-term | 0 | 0 |
Level 3 | Asset-backed securities | ||
Short-term | ||
Marketable securities, short-term | 0 | 0 |
Long-term | ||
Marketable securities, long-term | 0 | 0 |
Level 3 | Agency discount notes | ||
Short-term | ||
Marketable securities, short-term | 0 | |
Level 3 | Other | ||
Short-term | ||
Marketable securities, short-term | 0 | 0 |
Long-term | ||
Marketable securities, long-term | 0 | 0 |
Level 3 | Agency mortgage backed securities | ||
Long-term | ||
Marketable securities, long-term | 0 | |
Level 3 | Mutual funds | ||
Long-term | ||
Long-term other assets, fair value | 0 | 0 |
Level 3 | Convertible debt securities | ||
Long-term | ||
Long-term other assets, fair value | 2 | |
Level 3 | Money market funds | ||
Cash equivalents | ||
Cash equivalents, fair value | 0 | 0 |
Level 3 | Commercial paper | ||
Cash equivalents | ||
Cash equivalents, fair value | 0 | 0 |
Level 3 | Certificates of deposit | ||
Cash equivalents | ||
Cash equivalents, fair value | 0 | 0 |
Level 3 | Other | ||
Cash equivalents | ||
Cash equivalents, fair value | $ 0 | 0 |
Level 3 | U.S. government securities | ||
Cash equivalents | ||
Cash equivalents, fair value | $ 0 |
Equity Compensation - Summary o
Equity Compensation - Summary of Restricted Stock Award and Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) and Performance Shares shares in Thousands | 9 Months Ended |
Oct. 31, 2023 $ / shares shares | |
Unvested restricted stock units | |
Unvested restricted stock units, beginning balance (in shares) | shares | 4,848 |
Granted (in shares) | shares | 3,544 |
Vested (in shares) | shares | (2,334) |
Canceled/Forfeited (in shares) | shares | (261) |
Performance Adjustment (in shares) | shares | (11) |
Unvested restricted stock units, ending balance (in shares) | shares | 5,786 |
Weighted average grant date fair value per share | |
Unvested restricted stock units, beginning balance (in usd per share) | $ / shares | $ 216.20 |
Granted (in usd per share) | $ / shares | 199.54 |
Vested (in usd per share) | $ / shares | 216.56 |
Canceled/Forfeited (in usd per share) | $ / shares | 212.95 |
Performance Adjustment (in usd per share) | $ / shares | 189.41 |
Unvested restricted stock units, ending balance (in usd per share) | $ / shares | $ 205.98 |
Minimum | |
Weighted average grant date fair value per share | |
Performance shares units payout (in percentage) | 86% |
Maximum | |
Weighted average grant date fair value per share | |
Performance shares units payout (in percentage) | 110% |
Equity Compensation - Narrative
Equity Compensation - Narrative (Details) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Oct. 31, 2023 USD ($) shares | Jul. 31, 2023 USD ($) | Apr. 30, 2023 USD ($) | Oct. 31, 2022 USD ($) | Jul. 31, 2022 USD ($) | Oct. 31, 2023 USD ($) period shares | Oct. 31, 2022 USD ($) | Jan. 31, 2022 USD ($) | May 11, 2021 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Fair value of common stock issued to settle liability-classified restricted common stock | $ 8 | $ 1 | $ 3 | $ 5 | $ 9 | $ 8 | |||
Market capitalization | 2,000 | ||||||||
Share-based compensation expense | $ 181 | 172 | $ 543 | 496 | |||||
Expected dividends | 0% | ||||||||
1998 Employee Qualified Stock Purchase Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of compensation that eligible employees can use to purchase common stock, maximum | 15% | ||||||||
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 | ||||||||
Upchain | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized related to acquisition | $ 13 | ||||||||
Shares issued in period (in shares) | shares | 39 | ||||||||
Value of shares issued | $ 8 | ||||||||
Other Fiscal 2022 Acquisitions | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized related to acquisition | $ 11 | ||||||||
Remaining shares estimated to be issued (in shares) | shares | 33 | 33 | |||||||
Fiscal 2023 Acquisitions | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized related to acquisition | $ 5 | $ 5 | |||||||
Series of Individually Immaterial Business Acquisitions | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Value of shares issued | $ 1 | ||||||||
Remaining shares estimated to be issued (in shares) | shares | 13 | 13 | |||||||
Restricted Stock Units (RSUs) and Performance Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Awards vested in period, fair value | $ 476 | 402 | |||||||
Awards granted in period (in shares) | shares | 3,544 | ||||||||
Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Awards granted in period (in shares) | shares | 3,233 | ||||||||
Share based compensation expense | $ 151 | 130 | $ 445 | 383 | |||||
Performance Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Awards granted in period (in shares) | shares | 311 | ||||||||
Share based compensation expense | 11 | 13 | $ 32 | $ 42 | |||||
Market capitalization | $ 2,000 | ||||||||
Award vesting period | 3 years | ||||||||
Expected dividends | 0% | 0% | |||||||
Performance Stock Units | Share-based Compensation Award, Tranche One | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Awards vesting percentage (in percentage) | 33.33% | ||||||||
Performance Stock Units | Share-based Compensation Award, Tranche Two | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Awards vesting percentage (in percentage) | 33.33% | ||||||||
Performance Stock Units | Share-based Compensation Award, Tranche Three | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Awards vesting percentage (in percentage) | 33.33% | ||||||||
Restricted Stock | Fiscal 2023 Acquisitions | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period | 2 years | ||||||||
Shares issued in period (in shares) | shares | 40 | ||||||||
Common stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ 5 | $ 10 | $ 15 | $ 27 | |||||
Common stock | Series of Individually Immaterial Business Acquisitions | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares issued in period (in shares) | shares | 9 |
Equity Compensation - Summary_2
Equity Compensation - Summary of ESPP Activity (Details) - ESPP - 1998 Employee Qualified Stock Purchase Plan - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issued shares (in shares) | 357 | 363 | 791 | 740 |
Average price of issued shares (in usd per share) | $ 164.30 | $ 158.78 | $ 163.91 | $ 166.44 |
Weighted average grant date fair value of shares granted under the ESPP (in usd per share) | $ 67.29 | $ 66.43 | $ 68.70 | $ 67.77 |
Equity Compensation - Stock Bas
Equity Compensation - Stock Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to stock awards and ESPP purchases | $ 181 | $ 172 | $ 543 | $ 496 |
Tax (benefit) expense | (2) | (2) | 1 | 7 |
Stock-based compensation expense related to stock awards and ESPP purchases, net of tax | 179 | 170 | 544 | 503 |
Marketing and sales | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to stock awards and ESPP purchases | 66 | 68 | 202 | 199 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to stock awards and ESPP purchases | 78 | 71 | 233 | 199 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to stock awards and ESPP purchases | 24 | 21 | 69 | 63 |
Subscription and Maintenance | Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to stock awards and ESPP purchases | 9 | 9 | 28 | 26 |
Other | Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense related to stock awards and ESPP purchases | $ 4 | $ 3 | $ 11 | $ 9 |
Equity Compensation - Assumptio
Equity Compensation - Assumption Used to Estimate the Fair Value of Stock-Based Awards (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividends | 0% | |||
Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of expected volatilities, minimum (in percentage) | 40.90% | 39.40% | ||
Range of expected volatilities, maximum (in percentage) | 42.50% | 40.70% | ||
Expected dividends | 0% | 0% | ||
Range of risk-free interest rates, minimum (in percentage) | 4.30% | 1.20% | ||
Range of risk-free interest rates, maximum (in percentage) | 4.70% | 1.60% | ||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of expected volatilities, minimum (in percentage) | 29.40% | 40.70% | 29.40% | 38.30% |
Range of expected volatilities, maximum (in percentage) | 37.40% | 44.90% | 42.40% | 44.90% |
Expected dividends | 0% | 0% | 0% | 0% |
Range of risk-free interest rates, minimum (in percentage) | 5% | 3.70% | 4.30% | 0.90% |
Range of risk-free interest rates, maximum (in percentage) | 5.50% | 3.90% | 5.50% | 3.90% |
ESPP | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of expected lives (in years) | 6 months | 6 months | 6 months | 6 months |
ESPP | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of expected lives (in years) | 2 years | 2 years | 2 years | 2 years |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income tax expense (benefit) | $ 79 | $ 44 | $ 175 | $ 139 |
Pre-tax income | 320 | $ 242 | 799 | $ 669 |
Unrecognized tax benefits | 234 | 234 | ||
Amount of gross unrecognized tax benefits that would impact the effective tax rate, if recognized | 195 | 195 | ||
Unrecognized tax benefits that would reduce valuation allowance if recognized | 39 | 39 | ||
Decrease in unrecognized tax benefits in the next twelve months for statute lapse | $ 2 | $ 2 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Jan. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,699 | $ 1,633 |
Accumulated Amortization | (1,288) | (1,226) |
Net | 411 | 407 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 663 | 659 |
Accumulated Amortization | (426) | (402) |
Net | 237 | 257 |
Developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 920 | 858 |
Accumulated Amortization | (750) | (718) |
Net | 170 | 140 |
Trade names and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 115 | 116 |
Accumulated Amortization | (111) | (106) |
Net | 4 | $ 10 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1 | |
Accumulated Amortization | (1) | |
Net | $ 0 |
Cloud Computing Arrangements (D
Cloud Computing Arrangements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2023 | |
Capitalized Contract Cost [Line Items] | |||||
Amortization | $ 10 | $ 7 | $ 28 | $ 16 | |
Cloud-based Software Hosting Arrangements | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized software development costs | 238 | 238 | $ 190 | ||
Accumulated amortization | $ 69 | $ 69 | $ 41 |
Goodwill - Changes in the Carry
Goodwill - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 31, 2023 | Jan. 31, 2023 | |
Goodwill [Roll Forward] | ||
Goodwill gross, beginning of the period | $ 3,774 | |
Less: accumulated impairment losses, beginning of the period | $ (149) | |
Goodwill net, beginning of the period | 3,625 | |
Additions arising from acquisitions during the period | 8 | |
Effect of foreign currency translation | (29) | |
Goodwill net, end of the period | $ 3,604 |
Deferred Compensation (Details)
Deferred Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2023 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Costs to obtain a contract | $ 151,000,000 | $ 151,000,000 | $ 133,000,000 | ||
Amortization of costs to obtain a contract | 34,000,000 | $ 35,000,000 | 97,000,000 | $ 102,000,000 | |
Impairment losses | 0 | $ 0 | 0 | $ 0 | |
Rabbi Trust | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Deferred compensation liability | 90,000,000 | 90,000,000 | 86,000,000 | ||
Deferred compensation liability, current | 7,000,000 | 7,000,000 | 7,000,000 | ||
Deferred compensation liability, non-current | $ 83,000,000 | $ 83,000,000 | $ 79,000,000 |
Computer Equipment, Software,_3
Computer Equipment, Software, Furniture, and Leasehold Improvements, Net (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Jan. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Computer equipment, software, furniture, and leasehold improvements, gross | $ 617 | $ 632 |
Less: Accumulated depreciation | (489) | (488) |
Computer equipment, software, furniture, and leasehold improvements, net | 128 | 144 |
Computer hardware, at cost | ||
Property, Plant and Equipment [Line Items] | ||
Computer equipment, software, furniture, and leasehold improvements, gross | 115 | 126 |
Computer software, at cost | ||
Property, Plant and Equipment [Line Items] | ||
Computer equipment, software, furniture, and leasehold improvements, gross | 48 | 49 |
Furniture and equipment, at cost | ||
Property, Plant and Equipment [Line Items] | ||
Computer equipment, software, furniture, and leasehold improvements, gross | 98 | 94 |
Leasehold improvements, land and buildings, at cost | ||
Property, Plant and Equipment [Line Items] | ||
Computer equipment, software, furniture, and leasehold improvements, gross | $ 356 | $ 363 |
Borrowing Arrangements - Narrat
Borrowing Arrangements - Narrative (Details) | 1 Months Ended | 9 Months Ended | ||||
Oct. 31, 2021 USD ($) | Jan. 31, 2020 USD ($) | Jun. 30, 2017 USD ($) | Jun. 30, 2015 USD ($) | Oct. 31, 2023 USD ($) | Nov. 30, 2022 USD ($) qtr performance_indicator_metric | |
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt redemption price, 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 | |||||
Debt Due June 15, 2020 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 450,000,000 | |||||
2017 Notes due in 2027 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 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 | |||||
2017 Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | 500,000,000 | |||||
Repayments of debt | $ 400,000,000 | |||||
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 | |||||
Revolving Credit Facility | The 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, leverage ratio (no greater than) | 3.50 | |||||
Debt covenant, leverage ration following consummation of certain acquisitions (up to) | 4 | |||||
Debt covenant, leverage ration following consummation of certain acquisitions, number of consecutive quarters | qtr | 4 | |||||
Debt interest rates adjustment, number of key performance indicator metrics | performance_indicator_metric | 2 | |||||
Line of credit facility, outstanding borrowings | $ 0 | |||||
Revolving Credit Facility | The Credit Agreement | Minimum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0% | |||||
Revolving Credit Facility | The Credit Agreement | Minimum | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.785% | |||||
Revolving Credit Facility | The Credit Agreement | Maximum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.375% | |||||
Revolving Credit Facility | The Credit Agreement | Maximum | Secured Overnight Financing Rate (SOFR) | ||||||
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 ($) | Oct. 31, 2023 | Oct. 31, 2021 | Jan. 31, 2020 | Jun. 30, 2015 |
2015 Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate Principal Amount | $ 300,000,000 | $ 300,000,000 | ||
Fair value | 293,000,000 | |||
2017 Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate Principal Amount | 500,000,000 | |||
Fair value | 464,000,000 | |||
2020 Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate Principal Amount | 500,000,000 | $ 500,000,000 | ||
Fair value | 418,000,000 | |||
2021 Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate Principal Amount | 1,000,000,000 | $ 1,000,000,000 | ||
Fair value | $ 769,000,000 |
Borrowing Arrangements - Future
Borrowing Arrangements - Future Minimum Payments For Borrowings (Details) $ in Millions | Oct. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 (remainder) | $ 0 |
2025 | 0 |
2026 | 300 |
2027 | 0 |
2028 | 500 |
Thereafter | 1,500 |
Total principal outstanding | $ 2,300 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2023 | |
Lessee, Lease, Description [Line Items] | |||||
Weighted average remaining lease term | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 6 months | ||
Weighted average discount rate | 2.77% | 2.77% | 2.60% | ||
Public income remaining lease term | 8 years 3 months 18 days | ||||
Sublease income | $ 2 | $ 2 | $ 6 | $ 3 | |
Sublease income payments | 73 | ||||
Sublease income payments, expect to receive, remaining fiscal 2024 through fiscal 2028 | 35 | 35 | |||
Sublease income payments, expect to receive, thereafter | $ 38 | $ 38 | |||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease remaining lease term | 1 year | 1 year | |||
Lease renewal term | 1 year | 1 year | |||
Optional termination period | 1 year | 1 year | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease remaining lease term | 66 years | 66 years | |||
Lease renewal term | 9 years | 9 years | |||
Optional termination period | 6 years | 6 years |
Leases - Lease Costs and Cash F
Leases - Lease Costs and Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease cost | $ 17 | $ 21 | $ 53 | $ 66 |
Variable lease cost | 4 | 4 | 12 | 12 |
Cash paid for operating leases included in operating cash flows | 81 | 84 | ||
Non-cash operating lease liabilities arising from obtaining operating lease right-of-use assets | 44 | 49 | ||
Variable lease payments | 12 | 12 | ||
Cost of subscription and maintenance revenue | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease cost | 2 | 2 | 5 | 6 |
Variable lease cost | 1 | 0 | 1 | 1 |
Cost of other revenue | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease cost | 1 | 1 | 2 | 3 |
Variable lease cost | 0 | 0 | 0 | 0 |
Marketing and sales | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease cost | 7 | 9 | 22 | 28 |
Variable lease cost | 1 | 2 | 5 | 5 |
Research and development | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease cost | 5 | 7 | 17 | 21 |
Variable lease cost | 2 | 1 | 4 | 4 |
General and administrative | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease cost | 2 | 2 | 7 | 8 |
Variable lease cost | $ 0 | $ 1 | $ 2 | $ 2 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | Oct. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 (remainder) | $ 19 |
2025 | 88 |
2026 | 75 |
2027 | 55 |
2028 | 46 |
Thereafter | 114 |
Total lease payments | 397 |
Less imputed interest | 32 |
Present value of operating lease liabilities | $ 365 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2023 | |
Derivatives, Fair Value [Line Items] | |||||
Total derivative assets | $ 27 | $ 27 | $ 14 | ||
Total derivative liabilities | 18 | 18 | 31 | ||
Amount of gain (loss) recognized in accumulated other comprehensive income, net of tax, (effective portion) | 4 | $ 26 | (22) | $ 99 | |
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | 12 | 10 | 52 | 15 | |
Interest and other expense, net | (2) | 4 | 5 | 34 | |
Net revenue | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | 14 | 19 | 51 | 36 | |
Cost of revenue | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | 0 | (1) | 0 | (3) | |
Operating expenses | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | (2) | $ (8) | 1 | $ (18) | |
Prepaid expenses and other current assets | Foreign exchange contracts | Foreign currency contracts designated as cash flow hedges | |||||
Derivatives, Fair Value [Line Items] | |||||
Total derivative assets | 23 | 23 | 9 | ||
Prepaid expenses and other current assets | Foreign exchange contracts | Derivatives not designated as hedging instruments | |||||
Derivatives, Fair Value [Line Items] | |||||
Total derivative assets | 4 | 4 | 5 | ||
Other accrued liabilities | Foreign exchange contracts | Foreign currency contracts designated as cash flow hedges | |||||
Derivatives, Fair Value [Line Items] | |||||
Total derivative liabilities | 14 | 14 | 20 | ||
Other accrued liabilities | Foreign exchange contracts | Derivatives not designated as hedging instruments | |||||
Derivatives, Fair Value [Line Items] | |||||
Total derivative liabilities | $ 4 | $ 4 | $ 11 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Jan. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Net gain expected to be recognized in next 24 months | $ 42 | |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 1,080 | $ 934 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ 48 | $ 951 |
Derivative Instruments - Effect
Derivative Instruments - Effects of Derivative Instruments on Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Derivatives, Fair Value [Line Items] | ||||
Net revenue | $ 1,414 | $ 1,280 | $ 4,028 | $ 3,687 |
Marketing and sales | 439 | 454 | 1,344 | 1,306 |
Research and development | 339 | 311 | 1,021 | 906 |
General and administrative | 165 | 129 | 438 | 377 |
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | 12 | 10 | 52 | 15 |
Foreign exchange contracts | Designated as Hedging Instrument | Subscription revenue | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | 14 | 19 | 51 | 36 |
Foreign exchange contracts | Designated as Hedging Instrument | Maintenance revenue | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | 0 | 0 | 0 | 0 |
Foreign exchange contracts | Designated as Hedging Instrument | Cost of subscription and maintenance revenue | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | 0 | (1) | 0 | (3) |
Foreign exchange contracts | Designated as Hedging Instrument | Marketing and sales | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | (1) | (4) | 0 | (9) |
Foreign exchange contracts | Designated as Hedging Instrument | Research and development | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | 0 | (2) | 0 | (4) |
Foreign exchange contracts | Designated as Hedging Instrument | General and administrative | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | (1) | (2) | 1 | (5) |
Subscription revenue | ||||
Derivatives, Fair Value [Line Items] | ||||
Net revenue | 1,314 | 1,188 | 3,777 | 3,437 |
Maintenance revenue | ||||
Derivatives, Fair Value [Line Items] | ||||
Net revenue | 12 | 16 | 40 | 51 |
Cost of subscription and maintenance revenue | ||||
Derivatives, Fair Value [Line Items] | ||||
Net revenue | 1,326 | 1,204 | 3,817 | 3,488 |
Cost of revenue | $ 94 | $ 86 | $ 285 | $ 253 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) $ in Millions | Oct. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Aggregate purchase commitments | $ 750 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Changes in Stockholders' Deficit by Component, Net of Tax (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Oct. 31, 2023 | Jul. 31, 2023 | Apr. 30, 2023 | Oct. 31, 2022 | Jul. 31, 2022 | Apr. 30, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | $ 1,206 | $ 897 | $ 1,145 | $ 740 | $ 681 | $ 849 | $ 1,145 | $ 849 |
Common shares issued under stock plans | 27 | (31) | (21) | 18 | (17) | (10) | ||
Stock-based compensation expense | 179 | 195 | 160 | 165 | 163 | 146 | ||
Shares issued related to business combination | 10 | |||||||
Settlement of liability-classified restricted common shares | 8 | 1 | 3 | 5 | 9 | 8 | ||
Net income | 241 | 222 | 161 | 198 | 186 | 146 | 624 | 530 |
Other comprehensive income (loss) | (59) | 2 | (15) | (38) | (21) | (24) | ||
Repurchase and retirement of common shares | (112) | (87) | (534) | (180) | (257) | (436) | ||
Ending balance | $ 1,482 | $ 1,206 | $ 897 | $ 906 | $ 740 | $ 681 | $ 1,482 | $ 906 |
Common Stock Repurchase Program | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock repurchased and retired (in shares) | 543 | 1,000 | 4,000 | 4,000 | ||||
Repurchased shares of its common stock on the open market, average repurchase price per share (in usd per share) | $ 205.70 | $ 201.33 | $ 200.35 | $ 199.83 | ||||
September 2016 Common Stock Repurchase Program | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares remained available for repurchase under repurchase plans (in shares) | 0 | 4,000 | 0 | 4,000 | ||||
November 2022 Common Stock Repurchase Program | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Amount remained available for repurchase under repurchase plans | $ 4,800 | $ 4,800 | ||||||
Common stock and additional paid-in capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance (in shares) | 214,000 | 214,000 | 215,000 | 216,000 | 217,000 | 218,000 | 215,000 | 218,000 |
Beginning balance | $ 3,531 | $ 3,368 | $ 3,325 | $ 3,089 | $ 2,972 | $ 2,923 | $ 3,325 | $ 2,923 |
Common shares issued under stock plans (in shares) | 1,000 | 2,000 | 1,000 | 1,000 | ||||
Common shares issued under stock plans | $ 27 | (31) | $ (21) | $ 18 | (17) | $ (10) | ||
Stock-based compensation expense | $ 179 | 195 | 160 | 165 | 163 | 146 | ||
Shares issued related to business combination | $ 10 | |||||||
Settlement of liability-classified restricted common shares | 8 | $ 1 | $ 3 | $ 5 | ||||
Repurchase and retirement of common shares (in shares) | (1,000) | (3,000) | (1,000) | (1,000) | (2,000) | |||
Repurchase and retirement of common shares | $ (59) | $ (9) | $ (97) | $ (62) | $ (34) | $ (97) | ||
Ending balance (in shares) | 214,000 | 214,000 | 214,000 | 216,000 | 216,000 | 217,000 | 214,000 | 216,000 |
Ending balance | $ 3,678 | $ 3,531 | $ 3,368 | $ 3,213 | $ 3,089 | $ 2,972 | $ 3,678 | $ 3,213 |
Accumulated other comprehensive loss | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (198) | (200) | (185) | (169) | (148) | (124) | (185) | (124) |
Other comprehensive income (loss) | (59) | 2 | (15) | (38) | (21) | (24) | ||
Ending balance | (257) | (198) | (200) | (207) | (169) | (148) | (257) | (207) |
Accumulated deficit | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (2,127) | (2,271) | (1,995) | (2,180) | (2,143) | (1,950) | (1,995) | (1,950) |
Net income | 241 | 222 | 161 | 198 | 186 | 146 | ||
Repurchase and retirement of common shares | (53) | (78) | (437) | (118) | (223) | (339) | ||
Ending balance | $ (1,939) | $ (2,127) | $ (2,271) | $ (2,100) | $ (2,180) | $ (2,143) | $ (1,939) | $ (2,100) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 1,206 | $ 740 | $ 1,145 | $ 849 |
Other comprehensive income (loss) before reclassifications | (26) | (53) | ||
Pre-tax losses reclassified from accumulated other comprehensive loss | (54) | (14) | ||
Tax effects | 8 | (16) | ||
Total other comprehensive loss | (59) | (38) | (72) | (83) |
Ending balance | 1,482 | 906 | 1,482 | 906 |
Accumulated other comprehensive loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (198) | (169) | (185) | (124) |
Ending balance | (257) | (207) | (257) | (207) |
Net Unrealized Gains (Losses) on Derivative Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 64 | 24 | ||
Other comprehensive income (loss) before reclassifications | 27 | 131 | ||
Pre-tax losses reclassified from accumulated other comprehensive loss | (52) | (15) | ||
Tax effects | 3 | (17) | ||
Total other comprehensive loss | (22) | 99 | ||
Ending balance | 42 | 123 | 42 | 123 |
Net Unrealized Gains (Losses) on Available-for-Sale Debt Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 18 | 18 | ||
Other comprehensive income (loss) before reclassifications | (1) | 3 | ||
Pre-tax losses reclassified from accumulated other comprehensive loss | (1) | 0 | ||
Tax effects | 0 | 0 | ||
Total other comprehensive loss | (2) | 3 | ||
Ending balance | 16 | 21 | 16 | 21 |
Defined Benefit Pension Components | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (19) | (16) | ||
Other comprehensive income (loss) before reclassifications | 1 | (1) | ||
Pre-tax losses reclassified from accumulated other comprehensive loss | (1) | 1 | ||
Tax effects | 0 | 0 | ||
Total other comprehensive loss | 0 | 0 | ||
Ending balance | (19) | (16) | (19) | (16) |
Foreign Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (248) | (150) | ||
Other comprehensive income (loss) before reclassifications | (53) | (186) | ||
Pre-tax losses reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Tax effects | 5 | 1 | ||
Total other comprehensive loss | (48) | (185) | ||
Ending balance | $ (296) | $ (335) | $ (296) | $ (335) |
Net Income Per Share - Computat
Net Income Per Share - Computation of Net Income Per Share Amounts (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Oct. 31, 2023 | Jul. 31, 2023 | Apr. 30, 2023 | Oct. 31, 2022 | Jul. 31, 2022 | Apr. 30, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Numerator: | ||||||||
Net income | $ 241 | $ 222 | $ 161 | $ 198 | $ 186 | $ 146 | $ 624 | $ 530 |
Denominator: | ||||||||
Denominator for basic net income per share—weighted average shares (in shares) | 214 | 216 | 214 | 217 | ||||
Effect of dilutive securities (in shares) | 2 | 1 | 2 | 1 | ||||
Denominator for dilutive net income per share (in shares) | 216 | 217 | 216 | 218 | ||||
Basic net income per share (in usd per share) | $ 1.13 | $ 0.92 | $ 2.92 | $ 2.44 | ||||
Diluted net income per share (in usd per share) | $ 1.12 | $ 0.91 | $ 2.89 | $ 2.43 |
Net Income Per Share - Narrativ
Net Income Per Share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Earnings Per Share [Abstract] | ||||
Potentially dilutive shares excluded from the computation of diluted net income per share (in shares) | 141 | 921 | 388 | 1,052 |
Segments (Details)
Segments (Details) $ in Millions | 9 Months Ended | |
Oct. 31, 2023 USD ($) segment | Jan. 31, 2023 USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of operating segments | segment | 1 | |
Total long-lived assets | $ 365 | $ 389 |
Total Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 259 | 269 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 244 | 256 |
Other Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 15 | 13 |
Europe, Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 61 | 72 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 45 | $ 48 |