Cover
Cover - shares shares in Millions | 3 Months Ended | |
Apr. 30, 2024 | May 24, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2024 | |
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 $0.01 per share | |
Trading Symbol | ADSK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 216 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000769397 | |
Current Fiscal Year End Date | --01-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Net revenue: | ||
Total net revenue | $ 1,417 | $ 1,269 |
Cost of revenue: | ||
Total cost of revenue | 137 | 127 |
Gross profit | 1,280 | 1,142 |
Operating expenses: | ||
Marketing and sales | 469 | 456 |
Research and development | 346 | 327 |
General and administrative | 155 | 132 |
Amortization of purchased intangibles | 11 | 10 |
Total operating expenses | 981 | 925 |
Income from operations | 299 | 217 |
Interest and other income, net | 10 | 4 |
Income before income taxes | 309 | 221 |
Provision for income taxes | (57) | (60) |
Net income | $ 252 | $ 161 |
Basic net income per share (in usd per share) | $ 1.17 | $ 0.75 |
Diluted net income per share (in usd per share) | $ 1.16 | $ 0.75 |
Weighted average shares used in computing basic net income per share (in shares) | 215 | 215 |
Weighted average shares used in computing diluted net income per share (in shares) | 217 | 216 |
Cost of subscription and maintenance revenue | ||
Net revenue: | ||
Total net revenue | $ 1,341 | $ 1,207 |
Cost of revenue: | ||
Cost of revenue | 100 | 96 |
Amortization of developed technologies | 17 | 11 |
Subscription | ||
Net revenue: | ||
Total net revenue | 1,330 | 1,193 |
Maintenance | ||
Net revenue: | ||
Total net revenue | 11 | 14 |
Other | ||
Net revenue: | ||
Total net revenue | 76 | 62 |
Cost of revenue: | ||
Cost of revenue | $ 20 | $ 20 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 252 | $ 161 |
Other comprehensive loss, net of reclassifications: | ||
Net gain (loss) on derivative instruments (net of tax effect of zero and $2, respectively) | 2 | (13) |
Change in net unrealized (loss) gain on available-for-sale debt securities (net of tax effect of zero for all periods presented) | (2) | 2 |
Net change in cumulative foreign currency translation loss (net of tax effect of zero and $5 , respectively) | (29) | (4) |
Total other comprehensive loss | (29) | (15) |
Total comprehensive income | $ 223 | $ 146 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net gain (loss) on derivative instruments, tax expense (benefit) | $ 0 | $ 2 |
Change in net unrealized (loss) gain on available-for-sale securities, tax expense (benefit) | 0 | 0 |
Net change in cumulative foreign currency translation loss, tax expense (benefit) | $ 0 | $ 5 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Apr. 30, 2024 | Jan. 31, 2024 |
Current assets: | ||
Cash and cash equivalents | $ 1,681 | $ 1,892 |
Marketable securities | 308 | 354 |
Accounts receivable, net | 353 | 876 |
Prepaid expenses and other current assets | 468 | 457 |
Total current assets | 2,810 | 3,579 |
Long-term marketable securities | 238 | 234 |
Computer equipment, software, furniture and leasehold improvements, net | 117 | 121 |
Operating lease right-of-use assets | 214 | 224 |
Intangible assets, net | 572 | 406 |
Goodwill | 4,133 | 3,653 |
Deferred income taxes, net | 1,126 | 1,093 |
Long-term other assets | 620 | 602 |
Total assets | 9,830 | 9,912 |
Current liabilities: | ||
Accounts payable | 163 | 100 |
Accrued compensation | 326 | 476 |
Accrued income taxes | 59 | 36 |
Deferred revenue | 3,362 | 3,500 |
Operating lease liabilities | 66 | 67 |
Other accrued liabilities | 121 | 172 |
Total current liabilities | 4,097 | 4,351 |
Long-term deferred revenue | 600 | 764 |
Long-term operating lease liabilities | 263 | 275 |
Long-term income taxes payable | 178 | 168 |
Long-term deferred income taxes | 42 | 25 |
Long-term notes payable, net | 2,285 | 2,284 |
Long-term other liabilities | 204 | 190 |
Stockholders’ equity: | ||
Common stock and additional paid-in capital | 3,894 | 3,802 |
Accumulated other comprehensive loss | (263) | (234) |
Accumulated deficit | (1,470) | (1,713) |
Total stockholders’ equity | 2,161 | 1,855 |
Total liabilities and stockholders’ equity | $ 9,830 | $ 9,912 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Operating activities: | ||
Net income | $ 252 | $ 161 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 40 | 33 |
Stock-based compensation expense | 149 | 165 |
Amortization of costs to obtain a contract with a customer | 41 | 30 |
Deferred income taxes | (25) | (30) |
Other | 18 | (11) |
Changes in operating assets and liabilities, net of business combinations: | ||
Accounts receivable | 526 | 630 |
Prepaid expenses and other assets | (69) | (73) |
Accounts payable and other liabilities | (166) | (157) |
Deferred revenue | (305) | (98) |
Accrued income taxes | 33 | 73 |
Net cash provided by operating activities | 494 | 723 |
Investing activities: | ||
Purchases of marketable securities | (220) | (342) |
Sales and maturities of marketable securities | 262 | 163 |
Capital expenditures | (7) | (9) |
Purchases of intangible assets | (34) | (6) |
Business combinations, net of cash acquired | (637) | (26) |
Other investing activities | (2) | (10) |
Net cash used in investing activities | (638) | (230) |
Financing activities: | ||
Proceeds from issuance of common stock, net of issuance costs | 71 | 71 |
Taxes paid related to net share settlement of equity awards | (123) | (82) |
Repurchases of common stock | (9) | (512) |
Net cash used in financing activities | (61) | (523) |
Effect of exchange rate changes on cash and cash equivalents | (6) | (8) |
Net decrease in cash and cash equivalents | (211) | (38) |
Cash and cash equivalents at beginning of period | 1,892 | 1,947 |
Cash and cash equivalents at end of period | 1,681 | 1,909 |
Non-cash financing activities: | ||
Fair value of common stock issued to settle liability-classified restricted common stock | $ 3 | $ 1 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Autodesk, Inc. (“Autodesk,” “we,” “us,” “our,” or the “Company”) as of April 30, 2024, and for the three months ended April 30, 2024 and 2023, 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 months ended April 30, 2024, are not necessarily indicative of the results for the entire fiscal year ending January 31, 2025, or for any other period. Further, the balance sheet as of January 31, 2024, 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, 2024. 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, 2024, filed on June 10, 2024. Change in presentation During the quarter ended April 30, 2024, the Company changed its presentation of the amortization of costs capitalized to obtain a contract with a customer in our Condensed Consolidated Statements of Cash Flows. Amortization of costs capitalized to obtain a contract with a customer were previously presented in “Changes in operating assets and liabilities, net of business combinations” and are now presented in “Adjustments to reconcile net income to net cash provided by operating activities.” Accordingly, prior period amounts have been reclassified to conform to the current period presentation. These reclassifications did not impact total net cash provided by operating activities. The effect of the change on the Condensed Consolidated Statement of Cash Flows for the quarter ended April 30, 2023 was $30 million. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Apr. 30, 2024 | |
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 three months ended April 30, 2024, that are applicable to the Company. Recently Issued Accounting Standards Not Yet Adopted In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvement to Income Tax Disclosures” (“ASU 2023-09”), to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions and applies to all entities subject to income taxes. ASU 2023-09 is effective for Autodesk’s fiscal year beginning February 1, 2025 on a prospective basis. Early adoption is permitted. Autodesk is currently evaluating the effect of adopting ASU 2023-09 on its disclosures. Accounting Standards Adopted |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Apr. 30, 2024 | |
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 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 April 30, 2024 2023 Net revenue by product family: Architecture, Engineering and Construction $ 674 $ 582 AutoCAD and AutoCAD LT 376 349 Manufacturing 268 246 Media and Entertainment 71 71 Other 28 21 Total net revenue $ 1,417 $ 1,269 Net revenue by geographic area: Americas U.S. $ 509 $ 456 Other Americas 110 97 Total Americas 619 553 Europe, Middle East and Africa 534 474 Asia Pacific 264 242 Total net revenue $ 1,417 $ 1,269 Net revenue by sales channel: Indirect $ 880 $ 820 Direct 537 449 Total net revenue $ 1,417 $ 1,269 Net revenue by product type: Design $ 1,196 $ 1,086 Make 145 121 Other 76 62 Total net revenue $ 1,417 $ 1,269 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 due upfront or in annual installments over the contract term, with payment terms of 30 to 60 days. Autodesk does not have any material variable consideration, such as obligations for returns, refunds, warranties, or amounts due to customers for which significant estimation or judgment is required as of the reporting date. Remaining performance obligations consist of tota l short-term, long-term, a nd unbilled deferred revenue. As of April 30, 2024, Autodesk had remaining performance obligations of $5.89 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 $3.92 billion or 66% of our remaining performance obligations as revenue during the next 12 months. We expect to recognize the remaining $1.97 billion or 34% 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 April 30, 2024. Deferred revenue relates to billings in advance of performance under the contract. The primary changes in our contract assets and deferred revenues are due to our performance under the contracts and billings. Revenue recognized during the three months ended April 30, 2024 and 2023, that was included in the deferred revenue balances at January 31, 2024 and 2023, was $1.19 billion and $1.06 billion, respectively. The satisfaction of performance obligations typically lags behind payments received under revenue contracts from customers. |
Concentration of Credit Risk
Concentration of Credit Risk | 3 Months Ended |
Apr. 30, 2024 | |
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 14, “Borrowing Arrangements,” in the Notes to Condensed Consolidated Financial Statements for further discussion. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Apr. 30, 2024 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Financial Instruments The following tables summarize the Company's financial instruments by significant investment category as of April 30, 2024, and January 31, 2024: April 30, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents (1): Money market funds $ 592 $ — $ — $ 592 Commercial paper 278 — — 278 Certificates of deposit 83 — — 83 U.S. government securities 12 — — 12 Corporate debt securities 10 — — 10 Marketable securities: Short-term Commercial paper 141 — — 141 Corporate debt securities 73 — — 73 U.S. government securities 54 — — 54 Asset-backed securities 25 — — 25 Other (2) 15 — — 15 Long-term Corporate debt securities 108 — (1) 107 Asset-backed securities 62 — — 62 Agency mortgage backed securities 39 — (1) 38 U.S. government securities 25 — (1) 24 Other (3) 7 — — 7 Mutual funds (4) (5) 95 13 (1) 107 Total $ 1,619 $ 13 $ (4) $ 1,628 ___________________ (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 agency discount bonds, mortgage-backed securities, agency bonds, and certificates of deposit. (3) Consists of agency collateralized mortgage obligations, agency bonds, and mortgage-backed securities. (4) See Note 12, “Deferred Compensation” for more information. (5) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. January 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents (1): Money market funds $ 693 $ — $ — $ 693 Commercial paper 250 — — 250 U.S government securities 92 — — 92 Certificates of deposit 80 — — 80 Other (2) 6 — — 6 Marketable securities: Short-term Commercial paper 159 — — 159 Corporate debt securities 75 — — 75 U.S. government securities 70 — — 70 Asset-backed securities 28 — — 28 Other (3) 22 — — 22 Long-term Corporate debt securities 103 1 — 104 Asset backed securities 59 — — 59 Agency mortgage-backed securities 36 — — 36 U.S. government securities 24 — — 24 Other (4) 11 — — 11 Mutual funds (5) (6) 89 12 (1) 100 Total $ 1,797 $ 13 $ (1) $ 1,809 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists primarily of mortgage-backed securities and corporate debt securities. (3) Consists primarily of agency discount bonds, U.S. government securities, mortgage-backed securities, certificates of deposit, and agency bonds. (4) Consists primarily of agency bonds, agency collateralized mortgage obligations, and mortgage-backed securities. (5) See Note 12, “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 April 30, 2024: Fair Value Due within 1 year $ 276 Due in 1 year through 5 years 232 Due in 5 years through 10 years 13 Due after 10 years 25 Total $ 546 As of both April 30, 2024, and January 31, 2024, Autodesk had no material unrealized losses, individually and in the aggregate, for marketable debt securities that are in a continuous unrealized loss position for greater than 12 months. Total unrealized gains for securities with net gains in accumulated other comprehensive income were not material for the three months ended April 30, 2024. 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 April 30, 2024, and January 31, 2024. There were no write offs of accrued interest receivables for both the three months ended April 30, 2024 and 2023. There were no material realized gain or loss for the sales or redemptions of marketable debt securities during both the three months ended April 30, 2024 and 2023. Realized gains and losses from the sales or redemptions of marketable debt securities are recorded in “Interest and other income, 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 April 30, 2024 2023 Marketable debt securities $ 262 $ 163 Strategic investments in equity securities As of April 30, 2024, and January 31, 2024, Autodesk had $163 million and $162 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 income, net” on the Company's Condensed Consolidated Statements of Operations. These adjustments were as follows: Three Months Ended April 30, Cumulative Amount as of 2024 2023 April 30, 2024 Upward adjustments $ — $ — $ 29 Negative adjustments, including impairments — — (114) Net unrealized adjustments $ — $ — $ (85) Realized gains for the disposition of strategic investment equity securities for both the three months ended April 30, 2024 and 2023 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 April 30, 2024, and January 31, 2024: April 30, 2024 Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1): Money market funds $ 592 $ — $ — $ 592 Commercial paper — 278 — 278 Certificates of deposit — 83 — 83 U.S. government securities — 12 — 12 Corporate debt securities — 10 — 10 Marketable securities: Short-term Commercial paper — 141 — 141 Corporate debt securities — 73 — 73 U.S. government securities — 54 — 54 Asset-backed securities — 25 — 25 Other (2) — 15 — 15 Long-term Corporate debt securities — 107 — 107 Asset-backed securities — 62 — 62 Agency mortgage backed securities — 38 — 38 U.S. government securities — 24 — 24 Other (3) — 7 — 7 Long-term other assets: Mutual funds (4)(5) 107 — — 107 Derivative assets: Derivative contract assets (5) — 19 — 19 Derivative liabilities: Derivative contract liabilities (6) — (14) — (14) Total $ 699 $ 934 $ — $ 1,633 ____________________ (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 agency discount bonds, mortgage-backed securities, agency bonds, and certificates of deposit. (3) Consists of agency collateralized mortgage obligations, agency bonds, and mortgage-backed securities. (4) See Note 12, “Deferred Compensation” for more information. (5) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. (6) Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets. January 31, 2024 Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1): Money market funds $ 693 $ — $ — $ 693 Commercial paper — 250 — 250 U.S government securities — 92 — 92 Certificates of deposit — 80 — 80 Other (2) — 6 — 6 Marketable securities: Short-term Commercial paper — 159 — 159 Corporate debt securities — 75 — 75 U.S. government securities — 70 — 70 Asset backed securities — 28 — 28 Other (3) — 22 — 22 Long-term Corporate debt securities — 104 — 104 Asset backed securities — 59 — 59 Agency bonds — 36 — 36 U.S. government securities — 24 — 24 Other (4) — 11 — 11 Long-term other assets: Mutual funds (5) (6) 100 — — 100 Derivative assets: Derivative contract assets (6) — 21 — 21 Derivative liabilities: Derivative contract liabilities (7) — (15) — (15) Total $ 793 $ 1,022 $ — $ 1,815 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists primarily of mortgage-backed securities and corporate debt securities. (3) Consists primarily of agency discount bonds, U.S. government securities, mortgage-backed securities, certificates of deposit, and agency bonds. (4) Consists primarily of agency bonds, agency collateralized mortgage obligations, and mortgage-backed securities. (5) See Note 12, “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 | 3 Months Ended |
Apr. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Compensation | Equity Compensation Restricted Stock Units A summary of restricted stock activity for the three months ended April 30, 2024, is as follows: Unvested Weighted (in thousands) Unvested restricted stock units at January 31, 2024 5,371 $ 203.87 Granted 2,280 239.60 Vested (1,527) 207.80 Canceled/Forfeited (92) 205.06 Performance Adjustment (1) (32) 194.63 Unvested restricted stock units at April 30, 2024 6,000 $ 217.06 _______________ (1) Based on Autodesk's financial results and relative total stockholder return for the fiscal 2024 performance period. The performance stock units were attained at rates ranging from 75% to 96% of the target award. The fair value of the shares vested during the three months ended April 30, 2024 and 2023, was $396 million and $274 million, respectively. During the three months ended April 30, 2024, Autodesk granted 2 million 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 $127 million and $130 million during the three months ended April 30, 2024 and 2023, respectively. During the three months ended April 30, 2024, Autodesk granted 7 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 vested during the three months ended April 30, 2024, 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 $6 million and $11 million for the three months ended April 30, 2024 and 2023, respectively. Common Stock Autodesk recorded stock-based compensation expense related to common stock shares of $1 million and $6 million for the three months ended April 30, 2024 and 2023, respectively. 1998 Employee Qualified Stock Purchase Plan (“ESPP”) Under Autodesk’s ESPP, which was approved by stockholders in 1998, eligible employees may purchase shares of Autodesk’s common stock at their discretion using up to 15% of their eligible compensation, subject to certain limitations, at 85% of the lower of Autodesk's closing price (fair market value) on the offering date or the exercise date. The offering period for ESPP awards consists of four, six-month exercise periods within a 24-month offering period. A summary of the ESPP activity for the three months ended April 30, 2024 and 2023, is as follows: Three Months Ended April 30, 2024 2023 Issued shares (in thousands) 433 434 Average price of issued shares $ 164.81 $ 163.59 Weighted average grant date fair value of shares granted under the ESPP (1) $ 79.14 $ 71.34 _______________ (1) Calculated as of the award grant date using the Black-Scholes Merton (“BSM”) option pricing model. Stock-based Compensation Expense The following table summarizes stock-based compensation expense for the three months ended April 30, 2024 and 2023, as follows: Three Months Ended April 30, 2024 2023 Cost of subscription and maintenance revenue $ 9 $ 9 Cost of other revenue 3 3 Marketing and sales 53 62 Research and development 66 69 General and administrative 18 22 Stock-based compensation expense related to stock awards and ESPP purchases 149 165 Tax (benefit) expense (15) 1 Stock-based compensation expense related to stock awards and ESPP purchases, net of tax $ 134 $ 166 Stock-based Compensation Expense Assumptions Autodesk determines the grant date fair value of its share-based payment awards 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 April 30, 2024 Three Months Ended April 30, 2023 Performance Stock Units (1) ESPP Performance Stock Units ESPP Range of expected volatility N/A 28.7 - 34.5% 40.9 - 42.5% 40.0 - 42.4% Range of expected lives (in years) N/A 0.5- 2.0 N/A 0.5 - 2.0 Expected dividends N/A —% —% —% Range of risk-free interest rates N/A 4.6 - 5.4% 4.3 - 4.7% 4.3 - 5.0% (1) There were no performance stock units granted during the three months ended April 30, 2024, where the fair value was estimated by a Monte Carlo simulation. 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 | 3 Months Ended |
Apr. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax Autodesk had income tax expense of $57 million, relative to pre-tax income of $309 million for the three months ended April 30, 2024, and income tax expense of $60 million, relative to pre-tax income of $221 million for the three months ended April 30, 2023. Income tax expense for the three months ended April 30, 2024, reflects U.S. and foreign tax expense, including withholding tax, reduced by tax-deductible stock-based compensation and the foreign derived intangibles tax benefit in the U.S. 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. The Company continues to retain a valuation allowance against Portugal, New Zealand, California, Massachusetts, and Michigan deferred tax assets and deferred tax assets that will convert to a capital loss upon reversal in Australia and U.S., as we do not have sufficient income of the appropriate character to benefit these deferred tax assets. Autodesk also established a valuation allowance on the remaining deferred tax assets in Australia as it is more-likely-than-not that these deferred tax assets will not be realized. As of April 30, 2024, the Company had $267 million of gross unrecognized tax benefits, of which $224 million would impact the effective tax rate, if recognized. The remaining $43 million would reduce our valuation allowance, if recognized. The amount of unrecognized tax benefits will immaterially decrease in the next twelve months for statute lapses. Signed into law on August 16, 2022 in the U.S., 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. Signed into law on December 18, 2023 in Ireland, the Finance (No. 2) Act 2023 provides legislation to implement tax principles arising from proposals made by the Organization for Economic Co-operation and Development to establish a global minimum tax rate of 15%. The Company’s assessment of this legislation resulted in additional tax expense having a minimal impact to the consolidated financial statements. Other countries have enacted legislation or are actively considering changes to their tax law. The Company will continue to monitor proposed and enacted legislation for potential future impact on its consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Apr. 30, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions The results of operations for the following acquisitions are included in the accompanying Condensed Consolidated Statements of Operations since the acquisition date. Pro forma results of operations have not been presented because the effects of the acquisition are not material to Autodesk’s Condensed Consolidated Financial Statements. On February 20, 2024, Autodesk acquired 100% of the outstanding stock of Payapps Limited (“Payapps”), a leading cloud-based software platform for managing construction-related payments, for total consideration of $387 million in cash. Of the total consideration transferred, $381 million is considered purchase consideration. The remaining amount of $6 million was recorded in “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 using the straight-line method over the vesting period. Autodesk expects to deepen Autodesk Construction Cloud’s footprint and provide a robust payment management offering to serve the needs of general contractors and trade contractors. Through automating the application of the payment process, Payapps’ solution provides greater transparency, reduces risk and helps accelerate time-to-payment. On March 15, 2024, Autodesk acquired 100% of the PIX business of X2X, LLC (“PIX”), a production management solution for secure review and content collaboration in the media and entertainment industry for total consideration of $266 million in cash. The acquisition is expected to foster broader collaboration and communication, as well as help drive greater efficiencies, in the production process. Purchase Price Allocation The acquisitions were accounted for as business combinations, and Autodesk recorded the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The fair values assigned to the identifiable intangible assets acquired were based on estimates and assumptions determined by management. Autodesk recorded the excess of consideration transferred over the aggregate fair values as goodwill. The goodwill recorded was primarily attributable to synergies expected to arise after the respective acquisition. Goodwill in an approximate range of $180 million to $190 million is expected to be deductible for U.S. income tax purposes for PIX. Goodwill expected to be deductible for U.S. income tax purposes for Payapps is pending and not yet finalized. The transaction costs related to the acquisitions were not material. The following table summarizes the fair value of the assets acquired and liabilities assumed by major class for the business combinations that were completed during the three months ended April 30, 2024: Payapps PIX Total Developed technologies $ 53 $ 37 $ 90 Customer relationships 34 33 67 Trade name 5 — 5 Goodwill 300 191 491 Deferred revenue and long-term deferred revenue (4) (2) (6) Long-term deferred income taxes (12) — (12) Net tangible assets 5 7 12 Total $ 381 $ 266 $ 647 |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Apr. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Intangible Assets, Net The following tables summarize the Company's intangible assets, net, as of April 30, 2024, and January 31, 2024: April 30, 2024 Gross Carrying Amount (1) Accumulated Amortization Net Customer relationships $ 729 $ (446) $ 283 Developed technologies 1,056 (782) 274 Trade names and patents 121 (113) 8 Other 7 — 7 Total intangible assets $ 1,913 $ (1,341) $ 572 _______________ (1) Includes the effects of foreign currency translation. January 31, 2024 Gross Carrying Amount (1) Accumulated Amortization Net Customer relationships $ 664 $ (436) $ 228 Developed technologies 933 (765) 168 Trade names and patents 116 (113) 3 Other 8 (1) 7 Total intangible assets $ 1,721 $ (1,315) $ 406 _______________ (1) Includes the effects of foreign currency translation. |
Cloud Computing Arrangements
Cloud Computing Arrangements | 3 Months Ended |
Apr. 30, 2024 | |
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 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 April 30, 2024 2023 Net revenue by product family: Architecture, Engineering and Construction $ 674 $ 582 AutoCAD and AutoCAD LT 376 349 Manufacturing 268 246 Media and Entertainment 71 71 Other 28 21 Total net revenue $ 1,417 $ 1,269 Net revenue by geographic area: Americas U.S. $ 509 $ 456 Other Americas 110 97 Total Americas 619 553 Europe, Middle East and Africa 534 474 Asia Pacific 264 242 Total net revenue $ 1,417 $ 1,269 Net revenue by sales channel: Indirect $ 880 $ 820 Direct 537 449 Total net revenue $ 1,417 $ 1,269 Net revenue by product type: Design $ 1,196 $ 1,086 Make 145 121 Other 76 62 Total net revenue $ 1,417 $ 1,269 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 due upfront or in annual installments over the contract term, with payment terms of 30 to 60 days. Autodesk does not have any material variable consideration, such as obligations for returns, refunds, warranties, or amounts due to customers for which significant estimation or judgment is required as of the reporting date. Remaining performance obligations consist of tota l short-term, long-term, a nd unbilled deferred revenue. As of April 30, 2024, Autodesk had remaining performance obligations of $5.89 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 $3.92 billion or 66% of our remaining performance obligations as revenue during the next 12 months. We expect to recognize the remaining $1.97 billion or 34% 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 April 30, 2024. Deferred revenue relates to billings in advance of performance under the contract. The primary changes in our contract assets and deferred revenues are due to our performance under the contracts and billings. Revenue recognized during the three months ended April 30, 2024 and 2023, that was included in the deferred revenue balances at January 31, 2024 and 2023, was $1.19 billion and $1.06 billion, respectively. The satisfaction of performance obligations typically lags behind payments received under revenue contracts from customers. |
Goodwill
Goodwill | 3 Months Ended |
Apr. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill consists of the excess of the consideration transferred over the fair value of net assets acquired in business combinations. The following table summarizes the changes in the carrying amount of goodwill for the three months ended April 30, 2024, (in millions): Balance as of January 31, 2024 (1) 3,653 Additions arising from acquisitions during the period 491 Effect of foreign currency translation and measurement period adjustments (2) (11) Balance as of April 30, 2024 (1) $ 4,133 _______________ (1) Accumulated impairment losses as of both January 31, 2024 and April 30, 2024, were $149 million. (2) Measurement period adjustments reflect revisions made to the Company's preliminary determination of estimated fair value of assets and liabilities assumed. |
Deferred Compensation
Deferred Compensation | 3 Months Ended |
Apr. 30, 2024 | |
Compensation Related Costs [Abstract] | |
Deferred Compensation | Deferred Compensation At April 30, 2024, 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 $107 million. Of this amount, $10 million was classified as current and $97 million was classified as non-current in the Condensed Consolidated Balance Sheets. Of the $100 million related to the investments in a rabbi trust as of January 31, 2024, $10 million was classified as current and $90 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 | 3 Months Ended |
Apr. 30, 2024 | |
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: April 30, 2024 January 31, 2024 Computer hardware, at cost $ 118 $ 117 Computer software, at cost 48 48 Furniture and equipment, at cost 96 100 Leasehold improvements, land and buildings, at cost 331 357 593 622 Less: Accumulated depreciation (476) (501) Computer equipment, software, furniture, and leasehold improvements, net $ 117 $ 121 |
Borrowing Arrangements
Borrowing Arrangements | 3 Months Ended |
Apr. 30, 2024 | |
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. Per the Credit Agreement, Autodesk is required to issue annual audited consolidated financial statements within 90 days after the end of Autodesk’s fiscal year. On April 26, 2024, Autodesk obtained lender consent to extend the period to provide annual audited consolidated financial statements to June 14, 2024. At April 30, 2024, Autodesk was in compliance with all other Credit Agreement covenants. At April 30, 2024, Autodesk had no outstanding borrowings under the Credit Agreement. 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. 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 April 30, 2024, were as follows: Aggregate Principal Amount Fair value 2015 Notes $ 300 $ 296 2017 Notes 500 474 2020 Notes 500 436 2021 Notes 1,000 808 The expected future principal payments for all borrowings as of April 30, 2024, were as follows (in millions): Fiscal year ending 2025 (remainder) $ — 2026 300 2027 — 2028 500 2029 — Thereafter 1,500 Total principal outstanding $ 2,300 |
Leases
Leases | 3 Months Ended |
Apr. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases Autodesk has operating leases for real estate 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 8 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 April 30, 2024 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 2 $ — $ 7 $ 5 $ 3 $ 17 Variable lease cost — — 2 1 1 4 Three Months Ended April 30, 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 $ 6 $ 2 $ 18 Variable lease cost — — 2 1 1 4 Supplemental operating cash flow information related to leases is as follows: Three Months Ended April 30, 2024 2023 Cash paid for operating leases included in operating cash flows (1) $ 23 $ 28 Non-cash operating lease liabilities arising from obtaining operating lease right-of-use assets 5 38 _______________ (1) Includes $4 million in variable lease payments for both the three months ended April 30, 2024 and 2023, respectively, not included in “Operating lease liabilities” and “Long-term operating lease liabilities” on the Condensed Consolidated Balance Sheets. The weighted average remaining lease term for operating leases is 6.0 and 6.2 years at April 30, 2024, and January 31, 2024, respectively. The weighted average discount rate was 2.89% and 2.86% at April 30, 2024, and January 31, 2024, respectively. Maturities of operating lease liabilities were as follows: Fiscal year ending 2025 (remainder) $ 55 2026 79 2027 58 2028 48 2029 40 Thereafter 78 358 Less imputed interest 29 Present value of operating lease liabilities $ 329 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 7.8 years. Sublease income was $2 million for both the three months ended April 30, 2024 and 2023. 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 $70 million. Autodesk expects to receive sublease income payments of approximately $40 million for remaining fiscal 2025 through fiscal 2029 and $30 million thereafter. As of April 30, 2024, Autodesk had no material additional operating lease minimum lease payments for executed leases that have not yet commenced. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Apr. 30, 2024 | |
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 April 30, 2024, and January 31, 2024: Balance Sheet Location Fair Value at April 30, 2024 January 31, 2024 Derivative Assets Foreign currency contracts designated as cash flow hedges Prepaid expenses and other current assets $ 13 $ 8 Derivatives not designated as hedging instruments Prepaid expenses and other current assets 6 13 Total derivative assets $ 19 $ 21 Derivative Liabilities Foreign currency contracts designated as cash flow hedges Other accrued liabilities $ 8 $ 8 Derivatives not designated as hedging instruments Other accrued liabilities 6 7 Total derivative liabilities $ 14 $ 15 The effects of derivatives designated as hedging instruments on Autodesk’s Condensed Consolidated Statements of Operations were as follows for the three months ended April 30, 2024 and 2023 (amounts presented include any income tax effects): Three Months Ended April 30, 2024 2023 Amount of gain (loss) recognized in accumulated other comprehensive income, net of tax, (effective portion) $ 2 $ (13) Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) Net revenue $ 5 $ 20 Cost of revenue — — Operating expenses (2) 2 Total $ 3 $ 22 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 months ended April 30, 2024 and 2023, (amounts presented include any income tax effects): Three Months Ended April 30, 2024 2023 Interest and other income, net $ — $ 2 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 $1.48 billion at April 30, 2024, and $1.25 billion at January 31, 2024. 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 $25 million remaining in “Accumulated other comprehensive loss” as of April 30, 2024, is expected to be recognized into earnings within the next 24 months. The location and amount of gain or loss recognized in income on cash flow hedges together with the total amount of income or expense presented in the Company's Condensed Consolidated Statements of Operations where the effects of the hedge are recorded were as follows for the three months ended April 30, 2024 and 2023: Three Months Ended April 30, 2024 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 $ 1,330 $ 11 $ 100 $ 469 $ 346 $ 155 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 $ 5 $ — $ — $ (1) $ (1) $ — Three Months Ended April 30, 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 $ 1,193 $ 14 $ 96 $ 456 $ 327 $ 132 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 $ 20 $ — $ — $ 1 $ — $ 1 Derivatives not designated as hedging instruments |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guarantees and Indemnifications In the normal course of business, Autodesk provides indemnifications of varying scopes, including limited product warranties and indemnification of customers against claims of intellectual property infringement made by third parties arising from the use of its products or services. Autodesk accrues for known indemnification issues if a loss is probable and can be reasonably estimated. Historically, costs related to these indemnifications have not been significant, and because potential future costs are highly variable, Autodesk is unable to estimate the maximum potential impact of these indemnifications on its future results of operations. In connection with the purchase, sale, or license of assets or businesses with third parties, Autodesk has entered into or assumed customary indemnification agreements related to the assets or businesses purchased, sold, or licensed. Historically, costs related to these indemnifications have not been significant, and because potential future costs are highly variable, Autodesk is unable to estimate the maximum potential impact of these indemnifications on its future results of operations. As permitted under Delaware law, Autodesk has agreements whereby it indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at Autodesk’s request in such capacity. The maximum potential amount of future payments Autodesk could be required to make under these indemnification agreements is unlimited; however, Autodesk has directors’ and officers’ liability insurance coverage that is intended to reduce its financial exposure and may enable Autodesk to recover a portion of any future amounts paid. Autodesk believes the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal. Legal Proceedings Autodesk is involved in a variety of claims, suits, investigations, inquiries, and proceedings in the normal course of business including claims of alleged infringement of intellectual property rights, commercial, employment, tax, prosecution of unauthorized use, business practices, and other matters. Autodesk routinely reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any matter is considered probable and the amount can be reasonably estimated, Autodesk records a liability for the estimated loss. Because of inherent uncertainties related to these legal matters, Autodesk bases its loss accruals on the best information available at the time. As additional information becomes available, Autodesk reassesses its potential liability and may revise its estimates. In the Company's opinion, resolution of pending matters is not expected to have a material adverse impact on its consolidated results of operations, cash flows, or its financial position. Given the unpredictable nature of legal proceedings, there is a reasonable possibility that an unfavorable resolution of one or more such proceedings could in the future materially affect the Company's results of operations, cash flows, or financial position in a particular period, however, based on the information known by the Company as of the date of this filing and the rules and regulations applicable to the preparation of the Company's financial statements, any such amount is either immaterial or it is not possible to provide an estimated amount of any such potential loss. In early March 2024, the Audit Committee of Autodesk’s Board of Directors commenced an internal investigation with the assistance of outside counsel and advisors regarding the Company’s free cash flow and non-GAAP operating margin practices (the “Internal Investigation”). On March 8, 2024, the Company voluntarily contacted the U.S. Securities and Exchange Commission (“SEC”) to inform it of the Internal Investigation. On April 3, 2024, the United States Attorney’s Office for the Northern District of California (“USAO”) contacted the Company regarding the Internal Investigation. The Company voluntarily provided the SEC and USAO with certain documents relating to the Internal Investigation and will continue to cooperate with the SEC and USAO. At this stage, the Company cannot reasonably estimate the amount of any possible financial loss that could result from this matter. On April 24, 2024, plaintiff Michael Barkasi filed a purported federal securities class action complaint in the Northern District of California against the Company, our Chief Executive Officer Andrew Anagnost, and our former Chief Financial Officer, Deborah L. Clifford. The action is captioned Michael Barkasi v. Autodesk, Inc. et al., 3:24-cv-02431. The complaint, which was filed shortly after the Company’s announcement of the Audit Committee of the Board of Directors’ internal investigation regarding the Company’s free cash flow and non-GAAP operating margin practices, generally alleges that the defendants made false and misleading statements in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The action purports to be brought on behalf of those who purchased or otherwise acquired the Company’s publicly traded securities between June 1, 2023 and April 16, 2024, and seeks unspecified damages and other relief. The case is in its early stages and a lead plaintiff has yet to be appointed. At this stage, the Company cannot reasonably estimate the amount of any possible financial loss that could result from this matter. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Apr. 30, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Changes in stockholders' equity by component, net of tax, as of April 30, 2024, are as follows: Common stock and additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' equity Shares Amount Balances, January 31, 2024 214 $ 3,802 $ (234) $ (1,713) $ 1,855 Common shares issued under stock plans 1 (62) — — (62) Stock-based compensation expense — 151 — — 151 Settlement of liability-classified restricted common shares — 3 — — 3 Net income — — — 252 252 Other comprehensive loss — — (29) — (29) Repurchase and retirement of common shares (1) — — — (9) (9) Balances, April 30, 2024 215 $ 3,894 $ (263) $ (1,470) $ 2,161 ________________ (1) During the three months ended April 30, 2024, Autodesk repurchased 33 thousand shares at an average repurchase price of $254.81 per share. At April 30, 2024, $4.73 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 April 30, 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 ________________ (1) During the three months ended April 30, 2023, Autodesk repurchased 2,666 thousand shares at an average repurchase price of $199.36 per share. At April 30, 2023, 2 thousand shares and $5 billion remained available for repurchase under the September 2016 and November 2022 repurchase program approved by the Board of Directors, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Apr. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, net of taxes, consisted of the following at April 30, 2024: 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, 2024 $ 23 $ 20 $ (24) $ (253) $ (234) Other comprehensive income (loss) before reclassifications 5 (2) — (29) (26) Pre-tax gains reclassified from accumulated other comprehensive loss (3) — — — (3) Tax effects — — — — — Net current period other comprehensive income (loss) 2 (2) — (29) (29) Balances, April 30, 2024 $ 25 $ 18 $ (24) $ (282) $ (263) Accumulated other comprehensive loss, net of taxes, consisted of the following at April 30, 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 (loss) before reclassifications 7 2 — (9) — Pre-tax gains reclassified from accumulated other comprehensive loss (22) — — — (22) Tax effects 2 — — 5 7 Net current period other comprehensive (loss) income (13) 2 — (4) (15) Balances, April 30, 2023 $ 51 $ 20 $ (19) $ (252) $ (200) Reclassifications related to gains and losses on available-for-sale debt securities are included in “Interest and other income, net.” Refer to Note 16, “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 income, net.” |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Apr. 30, 2024 | |
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 April 30, 2024 2023 Numerator: Net income $ 252 $ 161 Denominator: Denominator for basic net income per share—weighted average shares 215 215 Effect of dilutive securities 2 1 Denominator for dilutive net income per share 217 216 Basic net income per share $ 1.17 $ 0.75 Diluted net income per share $ 1.16 $ 0.75 |
Segments
Segments | 3 Months Ended |
Apr. 30, 2024 | |
Segment Reporting [Abstract] | |
Segments | Segments Autodesk operates in one operating segment and accordingly, all required financial segment information is included in the condensed consolidated financial statements. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision makers (“CODM”) in deciding how to allocate resources and assess performance. Autodesk reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions, allocating resources, and assessing performance as the source of the Company’s reportable segments. The Company’s CODM allocates resources and assesses the operating performance of the Company as a whole. Information regarding Autodesk’s long-lived assets by geographic area is as follows: April 30, 2024 January 31, 2024 Long-lived assets (1): Americas U.S. $ 210 $ 221 Other Americas 14 15 Total Americas 224 236 Europe, Middle East, and Africa 64 63 Asia Pacific 43 46 Total long-lived assets $ 331 $ 345 ____________________ (1) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 20, 2024, Autodesk acquired Aether Media, Inc., a provider of a cloud-based artificial intelligence pipeline for creating computer-generated 3D characters into live-action scenes, for preliminary purchase consideration of $131 million, net of cash acquired. This acquisition will enhance artificial intelligence capabilities for Autodesk’s VFX creation tools and democratize high end VFX work on Autodesk’s Flow platform. We are currently in the process of determining the initial purchase accounting for this transaction. Based on the timing of the acquisition and lack of available information, we determined it to be impracticable to disclose a preliminary purchase price allocation at this time. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 252 | $ 161 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Apr. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Policies) | 3 Months Ended |
Apr. 30, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements of Autodesk, Inc. (“Autodesk,” “we,” “us,” “our,” or the “Company”) as of April 30, 2024, and for the three months ended April 30, 2024 and 2023, 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 months ended April 30, 2024, are not necessarily indicative of the results for the entire fiscal year ending January 31, 2025, or for any other period. Further, the balance sheet as of January 31, 2024, 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, 2024. 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, 2024, filed on June 10, 2024. Change in presentation During the quarter ended April 30, 2024, the Company changed its presentation of the amortization of costs capitalized to obtain a contract with a customer in our Condensed Consolidated Statements of Cash Flows. Amortization of costs capitalized to obtain a contract with a customer were previously presented in “Changes in operating assets and liabilities, net of business combinations” and are now presented in “Adjustments to reconcile net income to net cash provided by operating activities.” Accordingly, prior period amounts have been reclassified to conform to the current period presentation. These reclassifications did not impact total net cash provided by operating activities. The effect of the change on the Condensed Consolidated Statement of Cash Flows for the quarter ended April 30, 2023 was $30 million. |
Recently Issued Accounting Standards | With the exception of those discussed below, there have been no recent changes in accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) or adopted by the Company during the three months ended April 30, 2024, that are applicable to the Company. Recently Issued Accounting Standards Not Yet Adopted In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvement to Income Tax Disclosures” (“ASU 2023-09”), to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions and applies to all entities subject to income taxes. ASU 2023-09 is effective for Autodesk’s fiscal year beginning February 1, 2025 on a prospective basis. Early adoption is permitted. Autodesk is currently evaluating the effect of adopting ASU 2023-09 on its disclosures. Accounting Standards Adopted |
Revenue Recognition | Revenue Disaggregation |
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. |
Cloud Computing Arrangements | Autodesk enters into certain cloud-based software hosting arrangements that are accounted for as service contracts. Costs incurred for these arrangements are capitalized for application development activities, if material, and immediately expensed for preliminary project activities and post-implementation activities. Autodesk amortizes the capitalized development costs straight-line over the fixed, non-cancellable term of the associated hosting arrangement plus any reasonably certain renewal periods. The capitalized costs are included in “Prepaid expenses and other current assets” and “Long-term other assets” on our Condensed Consolidated Balance Sheets. |
Goodwill | Goodwill consists of the excess of the consideration transferred over the fair value of net assets acquired in business combinations. |
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. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
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 April 30, 2024 2023 Net revenue by product family: Architecture, Engineering and Construction $ 674 $ 582 AutoCAD and AutoCAD LT 376 349 Manufacturing 268 246 Media and Entertainment 71 71 Other 28 21 Total net revenue $ 1,417 $ 1,269 Net revenue by geographic area: Americas U.S. $ 509 $ 456 Other Americas 110 97 Total Americas 619 553 Europe, Middle East and Africa 534 474 Asia Pacific 264 242 Total net revenue $ 1,417 $ 1,269 Net revenue by sales channel: Indirect $ 880 $ 820 Direct 537 449 Total net revenue $ 1,417 $ 1,269 Net revenue by product type: Design $ 1,196 $ 1,086 Make 145 121 Other 76 62 Total net revenue $ 1,417 $ 1,269 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Investments, All Other Investments [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 April 30, 2024, and January 31, 2024: April 30, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents (1): Money market funds $ 592 $ — $ — $ 592 Commercial paper 278 — — 278 Certificates of deposit 83 — — 83 U.S. government securities 12 — — 12 Corporate debt securities 10 — — 10 Marketable securities: Short-term Commercial paper 141 — — 141 Corporate debt securities 73 — — 73 U.S. government securities 54 — — 54 Asset-backed securities 25 — — 25 Other (2) 15 — — 15 Long-term Corporate debt securities 108 — (1) 107 Asset-backed securities 62 — — 62 Agency mortgage backed securities 39 — (1) 38 U.S. government securities 25 — (1) 24 Other (3) 7 — — 7 Mutual funds (4) (5) 95 13 (1) 107 Total $ 1,619 $ 13 $ (4) $ 1,628 ___________________ (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 agency discount bonds, mortgage-backed securities, agency bonds, and certificates of deposit. (3) Consists of agency collateralized mortgage obligations, agency bonds, and mortgage-backed securities. (4) See Note 12, “Deferred Compensation” for more information. (5) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. January 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents (1): Money market funds $ 693 $ — $ — $ 693 Commercial paper 250 — — 250 U.S government securities 92 — — 92 Certificates of deposit 80 — — 80 Other (2) 6 — — 6 Marketable securities: Short-term Commercial paper 159 — — 159 Corporate debt securities 75 — — 75 U.S. government securities 70 — — 70 Asset-backed securities 28 — — 28 Other (3) 22 — — 22 Long-term Corporate debt securities 103 1 — 104 Asset backed securities 59 — — 59 Agency mortgage-backed securities 36 — — 36 U.S. government securities 24 — — 24 Other (4) 11 — — 11 Mutual funds (5) (6) 89 12 (1) 100 Total $ 1,797 $ 13 $ (1) $ 1,809 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists primarily of mortgage-backed securities and corporate debt securities. (3) Consists primarily of agency discount bonds, U.S. government securities, mortgage-backed securities, certificates of deposit, and agency bonds. (4) Consists primarily of agency bonds, agency collateralized mortgage obligations, and mortgage-backed securities. (5) See Note 12, “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 April 30, 2024: Fair Value Due within 1 year $ 276 Due in 1 year through 5 years 232 Due in 5 years through 10 years 13 Due after 10 years 25 Total $ 546 |
Schedule of Marketable Securities | Proceeds from the sale and maturity of marketable debt securities were as follows: Three Months Ended April 30, 2024 2023 Marketable debt securities $ 262 $ 163 |
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 income, net” on the Company's Condensed Consolidated Statements of Operations. These adjustments were as follows: Three Months Ended April 30, Cumulative Amount as of 2024 2023 April 30, 2024 Upward adjustments $ — $ — $ 29 Negative adjustments, including impairments — — (114) Net unrealized adjustments $ — $ — $ (85) |
Schedule of 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 April 30, 2024, and January 31, 2024: April 30, 2024 Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1): Money market funds $ 592 $ — $ — $ 592 Commercial paper — 278 — 278 Certificates of deposit — 83 — 83 U.S. government securities — 12 — 12 Corporate debt securities — 10 — 10 Marketable securities: Short-term Commercial paper — 141 — 141 Corporate debt securities — 73 — 73 U.S. government securities — 54 — 54 Asset-backed securities — 25 — 25 Other (2) — 15 — 15 Long-term Corporate debt securities — 107 — 107 Asset-backed securities — 62 — 62 Agency mortgage backed securities — 38 — 38 U.S. government securities — 24 — 24 Other (3) — 7 — 7 Long-term other assets: Mutual funds (4)(5) 107 — — 107 Derivative assets: Derivative contract assets (5) — 19 — 19 Derivative liabilities: Derivative contract liabilities (6) — (14) — (14) Total $ 699 $ 934 $ — $ 1,633 ____________________ (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 agency discount bonds, mortgage-backed securities, agency bonds, and certificates of deposit. (3) Consists of agency collateralized mortgage obligations, agency bonds, and mortgage-backed securities. (4) See Note 12, “Deferred Compensation” for more information. (5) Included in “Prepaid expenses and other current assets” or “Long-term other assets” in the accompanying Condensed Consolidated Balance Sheets. (6) Included in “Other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets. January 31, 2024 Level 1 Level 2 Level 3 Total Assets: Cash equivalents (1): Money market funds $ 693 $ — $ — $ 693 Commercial paper — 250 — 250 U.S government securities — 92 — 92 Certificates of deposit — 80 — 80 Other (2) — 6 — 6 Marketable securities: Short-term Commercial paper — 159 — 159 Corporate debt securities — 75 — 75 U.S. government securities — 70 — 70 Asset backed securities — 28 — 28 Other (3) — 22 — 22 Long-term Corporate debt securities — 104 — 104 Asset backed securities — 59 — 59 Agency bonds — 36 — 36 U.S. government securities — 24 — 24 Other (4) — 11 — 11 Long-term other assets: Mutual funds (5) (6) 100 — — 100 Derivative assets: Derivative contract assets (6) — 21 — 21 Derivative liabilities: Derivative contract liabilities (7) — (15) — (15) Total $ 793 $ 1,022 $ — $ 1,815 ____________________ (1) Included in “Cash and cash equivalents” in the accompanying Condensed Consolidated Balance Sheets. These investments are classified as debt securities. (2) Consists primarily of mortgage-backed securities and corporate debt securities. (3) Consists primarily of agency discount bonds, U.S. government securities, mortgage-backed securities, certificates of deposit, and agency bonds. (4) Consists primarily of agency bonds, agency collateralized mortgage obligations, and mortgage-backed securities. (5) See Note 12, “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) | 3 Months Ended |
Apr. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Summary of Restricted Stock Activity | A summary of restricted stock activity for the three months ended April 30, 2024, is as follows: Unvested Weighted (in thousands) Unvested restricted stock units at January 31, 2024 5,371 $ 203.87 Granted 2,280 239.60 Vested (1,527) 207.80 Canceled/Forfeited (92) 205.06 Performance Adjustment (1) (32) 194.63 Unvested restricted stock units at April 30, 2024 6,000 $ 217.06 _______________ (1) |
Schedule of Summary of the ESPP Activity | A summary of the ESPP activity for the three months ended April 30, 2024 and 2023, is as follows: Three Months Ended April 30, 2024 2023 Issued shares (in thousands) 433 434 Average price of issued shares $ 164.81 $ 163.59 Weighted average grant date fair value of shares granted under the ESPP (1) $ 79.14 $ 71.34 _______________ (1) |
Schedule of Stock-based Compensation Expense | The following table summarizes stock-based compensation expense for the three months ended April 30, 2024 and 2023, as follows: Three Months Ended April 30, 2024 2023 Cost of subscription and maintenance revenue $ 9 $ 9 Cost of other revenue 3 3 Marketing and sales 53 62 Research and development 66 69 General and administrative 18 22 Stock-based compensation expense related to stock awards and ESPP purchases 149 165 Tax (benefit) expense (15) 1 Stock-based compensation expense related to stock awards and ESPP purchases, net of tax $ 134 $ 166 |
Schedule of Assumptions to Estimate the Fair Value of Stock-based Awards | Autodesk uses the following assumptions to estimate the fair value of stock-based awards: Three Months Ended April 30, 2024 Three Months Ended April 30, 2023 Performance Stock Units (1) ESPP Performance Stock Units ESPP Range of expected volatility N/A 28.7 - 34.5% 40.9 - 42.5% 40.0 - 42.4% Range of expected lives (in years) N/A 0.5- 2.0 N/A 0.5 - 2.0 Expected dividends N/A —% —% —% Range of risk-free interest rates N/A 4.6 - 5.4% 4.3 - 4.7% 4.3 - 5.0% (1) There were no performance stock units granted during the three months ended April 30, 2024, where the fair value was estimated by a Monte Carlo simulation. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Fair Value of the Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the assets acquired and liabilities assumed by major class for the business combinations that were completed during the three months ended April 30, 2024: Payapps PIX Total Developed technologies $ 53 $ 37 $ 90 Customer relationships 34 33 67 Trade name 5 — 5 Goodwill 300 191 491 Deferred revenue and long-term deferred revenue (4) (2) (6) Long-term deferred income taxes (12) — (12) Net tangible assets 5 7 12 Total $ 381 $ 266 $ 647 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-lived Intangible Assets | The following tables summarize the Company's intangible assets, net, as of April 30, 2024, and January 31, 2024: April 30, 2024 Gross Carrying Amount (1) Accumulated Amortization Net Customer relationships $ 729 $ (446) $ 283 Developed technologies 1,056 (782) 274 Trade names and patents 121 (113) 8 Other 7 — 7 Total intangible assets $ 1,913 $ (1,341) $ 572 _______________ (1) Includes the effects of foreign currency translation. January 31, 2024 Gross Carrying Amount (1) Accumulated Amortization Net Customer relationships $ 664 $ (436) $ 228 Developed technologies 933 (765) 168 Trade names and patents 116 (113) 3 Other 8 (1) 7 Total intangible assets $ 1,721 $ (1,315) $ 406 _______________ (1) Includes the effects of foreign currency translation. |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the changes in the carrying amount of goodwill for the three months ended April 30, 2024, (in millions): Balance as of January 31, 2024 (1) 3,653 Additions arising from acquisitions during the period 491 Effect of foreign currency translation and measurement period adjustments (2) (11) Balance as of April 30, 2024 (1) $ 4,133 _______________ (1) Accumulated impairment losses as of both January 31, 2024 and April 30, 2024, were $149 million. (2) Measurement period adjustments reflect revisions made to the Company's preliminary determination of estimated fair value of assets and liabilities assumed. |
Computer Equipment, Software,_2
Computer Equipment, Software, Furniture, and Leasehold Improvements, Net (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
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: April 30, 2024 January 31, 2024 Computer hardware, at cost $ 118 $ 117 Computer software, at cost 48 48 Furniture and equipment, at cost 96 100 Leasehold improvements, land and buildings, at cost 331 357 593 622 Less: Accumulated depreciation (476) (501) Computer equipment, software, furniture, and leasehold improvements, net $ 117 $ 121 |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Fair Value of Market Price | Based on the quoted market prices, the approximate fair value of the notes as of April 30, 2024, were as follows: Aggregate Principal Amount Fair value 2015 Notes $ 300 $ 296 2017 Notes 500 474 2020 Notes 500 436 2021 Notes 1,000 808 |
Schedule of Future Minimum Payments For Borrowings | The expected future principal payments for all borrowings as of April 30, 2024, were as follows (in millions): Fiscal year ending 2025 (remainder) $ — 2026 300 2027 — 2028 500 2029 — Thereafter 1,500 Total principal outstanding $ 2,300 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Leases [Abstract] | |
Schedule of Lease Cost and Cash Flow Information | The components of lease cost were as follows: Three Months Ended April 30, 2024 Cost of subscription and maintenance revenue Cost of other revenue Marketing and sales Research and development General and administrative Total Operating lease cost $ 2 $ — $ 7 $ 5 $ 3 $ 17 Variable lease cost — — 2 1 1 4 Three Months Ended April 30, 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 $ 6 $ 2 $ 18 Variable lease cost — — 2 1 1 4 Supplemental operating cash flow information related to leases is as follows: Three Months Ended April 30, 2024 2023 Cash paid for operating leases included in operating cash flows (1) $ 23 $ 28 Non-cash operating lease liabilities arising from obtaining operating lease right-of-use assets 5 38 _______________ (1) Includes $4 million in variable lease payments for both the three months ended April 30, 2024 and 2023, respectively, not included in “Operating lease liabilities” and “Long-term operating lease liabilities” on the Condensed Consolidated Balance Sheets. |
Schedule of Future Minimum Lease Payments | Maturities of operating lease liabilities were as follows: Fiscal year ending 2025 (remainder) $ 55 2026 79 2027 58 2028 48 2029 40 Thereafter 78 358 Less imputed interest 29 Present value of operating lease liabilities $ 329 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
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 April 30, 2024, and January 31, 2024: Balance Sheet Location Fair Value at April 30, 2024 January 31, 2024 Derivative Assets Foreign currency contracts designated as cash flow hedges Prepaid expenses and other current assets $ 13 $ 8 Derivatives not designated as hedging instruments Prepaid expenses and other current assets 6 13 Total derivative assets $ 19 $ 21 Derivative Liabilities Foreign currency contracts designated as cash flow hedges Other accrued liabilities $ 8 $ 8 Derivatives not designated as hedging instruments Other accrued liabilities 6 7 Total derivative liabilities $ 14 $ 15 |
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 months ended April 30, 2024 and 2023 (amounts presented include any income tax effects): Three Months Ended April 30, 2024 2023 Amount of gain (loss) recognized in accumulated other comprehensive income, net of tax, (effective portion) $ 2 $ (13) Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) Net revenue $ 5 $ 20 Cost of revenue — — Operating expenses (2) 2 Total $ 3 $ 22 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 months ended April 30, 2024 and 2023, (amounts presented include any income tax effects): Three Months Ended April 30, 2024 2023 Interest and other income, net $ — $ 2 |
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 months ended April 30, 2024 and 2023: Three Months Ended April 30, 2024 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 $ 1,330 $ 11 $ 100 $ 469 $ 346 $ 155 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 $ 5 $ — $ — $ (1) $ (1) $ — Three Months Ended April 30, 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 $ 1,193 $ 14 $ 96 $ 456 $ 327 $ 132 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 $ 20 $ — $ — $ 1 $ — $ 1 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Equity [Abstract] | |
Schedule of Changes in Stockholders' Deficit by Component, Net of Tax | Changes in stockholders' equity by component, net of tax, as of April 30, 2024, are as follows: Common stock and additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total stockholders' equity Shares Amount Balances, January 31, 2024 214 $ 3,802 $ (234) $ (1,713) $ 1,855 Common shares issued under stock plans 1 (62) — — (62) Stock-based compensation expense — 151 — — 151 Settlement of liability-classified restricted common shares — 3 — — 3 Net income — — — 252 252 Other comprehensive loss — — (29) — (29) Repurchase and retirement of common shares (1) — — — (9) (9) Balances, April 30, 2024 215 $ 3,894 $ (263) $ (1,470) $ 2,161 ________________ (1) During the three months ended April 30, 2024, Autodesk repurchased 33 thousand shares at an average repurchase price of $254.81 per share. At April 30, 2024, $4.73 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 April 30, 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 ________________ (1) During the three months ended April 30, 2023, Autodesk repurchased 2,666 thousand shares at an average repurchase price of $199.36 per share. At April 30, 2023, 2 thousand shares and $5 billion remained available for repurchase under the September 2016 and November 2022 repurchase program approved by the Board of Directors, respectively. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss, Net of Taxes | Accumulated other comprehensive loss, net of taxes, consisted of the following at April 30, 2024: 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, 2024 $ 23 $ 20 $ (24) $ (253) $ (234) Other comprehensive income (loss) before reclassifications 5 (2) — (29) (26) Pre-tax gains reclassified from accumulated other comprehensive loss (3) — — — (3) Tax effects — — — — — Net current period other comprehensive income (loss) 2 (2) — (29) (29) Balances, April 30, 2024 $ 25 $ 18 $ (24) $ (282) $ (263) Accumulated other comprehensive loss, net of taxes, consisted of the following at April 30, 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 (loss) before reclassifications 7 2 — (9) — Pre-tax gains reclassified from accumulated other comprehensive loss (22) — — — (22) Tax effects 2 — — 5 7 Net current period other comprehensive (loss) income (13) 2 — (4) (15) Balances, April 30, 2023 $ 51 $ 20 $ (19) $ (252) $ (200) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
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 April 30, 2024 2023 Numerator: Net income $ 252 $ 161 Denominator: Denominator for basic net income per share—weighted average shares 215 215 Effect of dilutive securities 2 1 Denominator for dilutive net income per share 217 216 Basic net income per share $ 1.17 $ 0.75 Diluted net income per share $ 1.16 $ 0.75 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Long-lived Assets by Geographic Areas | Information regarding Autodesk’s long-lived assets by geographic area is as follows: April 30, 2024 January 31, 2024 Long-lived assets (1): Americas U.S. $ 210 $ 221 Other Americas 14 15 Total Americas 224 236 Europe, Middle East, and Africa 64 63 Asia Pacific 43 46 Total long-lived assets $ 331 $ 345 ____________________ (1) |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Effect of change | $ (211) | $ (38) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Effect of change | $ (211) | (38) |
Revision of Prior Period, Reclassification, Adjustment | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Effect of change | 30 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Effect of change | $ 30 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 USD ($) category | Apr. 30, 2023 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Number of revenue categories | category | 3 | |
Contract with customer, liability, revenue recognized | $ 1,190 | $ 1,060 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-05-01 | Period One | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 5,890 | |
Performance obligation, expected timing of satisfaction | 3 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-05-01 | Period Two | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 3,920 | |
Performance obligation, expected timing of satisfaction | 12 months | |
Remaining performance obligation percentage | 66% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-05-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 1,970 | |
Performance obligation, expected timing of satisfaction | ||
Remaining performance obligation percentage | 34% | |
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 - Schedule
Revenue Recognition - Schedule of Contract Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total net revenue | $ 1,417 | $ 1,269 |
Design | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 1,196 | 1,086 |
Make | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 145 | 121 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 76 | 62 |
Indirect | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 880 | 820 |
Direct | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 537 | 449 |
Total Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 619 | 553 |
U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 509 | 456 |
Other Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 110 | 97 |
Europe, Middle East, and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 534 | 474 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 264 | 242 |
Architecture, Engineering and Construction | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 674 | 582 |
AutoCAD and AutoCAD LT | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 376 | 349 |
Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 268 | 246 |
Media and Entertainment | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 71 | 71 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | $ 28 | $ 21 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Jan. 31, 2024 | Nov. 30, 2022 | |
TD Synnex | Net Revenue | Customer Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk (in percentage) | 38% | 40% | ||
TD Synnex | Accounts Receivable | Customer Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk (in percentage) | 22% | 18% | ||
Revolving Credit Facility | The Credit Agreement | ||||
Concentration Risk [Line Items] | ||||
Maximum borrowing capacity | $ 1,500,000,000 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Cost and Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Apr. 30, 2024 | Jan. 31, 2024 |
Cash equivalents: | ||
Amortized Cost | $ 1,681 | $ 1,892 |
Long-term | ||
Total, amortized cost | 1,619 | 1,797 |
Total, Gross unrealized gains | 13 | 13 |
Total, Gross unrealized losses | (4) | (1) |
Total, fair value | 1,628 | 1,809 |
Commercial paper | ||
Short-term | ||
Amortized Cost | 141 | 159 |
Fair Value | 141 | 159 |
Corporate debt securities | ||
Cash equivalents: | ||
Fair Value | 10 | |
Short-term | ||
Amortized Cost | 73 | 75 |
Fair Value | 73 | 75 |
Long-term | ||
Amortized Cost | 108 | 103 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (1) | 0 |
Fair Value | 107 | 104 |
U.S. government securities | ||
Cash equivalents: | ||
Fair Value | 12 | |
Short-term | ||
Amortized Cost | 54 | 70 |
Fair Value | 54 | 70 |
Long-term | ||
Amortized Cost | 25 | 24 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | 0 |
Fair Value | 24 | 24 |
Asset-backed securities | ||
Short-term | ||
Amortized Cost | 25 | 28 |
Fair Value | 25 | 28 |
Long-term | ||
Amortized Cost | 62 | 59 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 62 | 59 |
Other | ||
Short-term | ||
Amortized Cost | 15 | 22 |
Fair Value | 15 | 22 |
Long-term | ||
Amortized Cost | 7 | 11 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 7 | 11 |
Agency mortgage backed securities | ||
Long-term | ||
Amortized Cost | 39 | 36 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | 0 |
Fair Value | 38 | 36 |
Mutual funds | ||
Long-term | ||
Other investments | 95 | 89 |
Other investments, gross unrealized gains | 13 | 12 |
Other investments, gross unrealized losses | (1) | (1) |
Other investments, fair value | 107 | 100 |
Money market funds | ||
Cash equivalents: | ||
Amortized Cost | 592 | 693 |
Fair Value | 592 | 693 |
Commercial paper | ||
Cash equivalents: | ||
Amortized Cost | 278 | 250 |
Fair Value | 278 | 250 |
Certificates of deposit | ||
Cash equivalents: | ||
Amortized Cost | 83 | 80 |
Fair Value | 83 | 80 |
Other | ||
Cash equivalents: | ||
Amortized Cost | 6 | |
Fair Value | 6 | |
U.S. government securities | ||
Cash equivalents: | ||
Amortized Cost | 12 | 92 |
Fair Value | 12 | $ 92 |
Corporate debt securities | ||
Cash equivalents: | ||
Amortized Cost | 10 | |
Fair Value | $ 10 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Investments Classified by Contractual Maturity Date (Details) $ in Millions | Apr. 30, 2024 USD ($) |
Investments, All Other Investments [Abstract] | |
Due within 1 year | $ 276 |
Due in 1 year through 5 years | 232 |
Due in 5 years through 10 years | 13 |
Due after 10 years | 25 |
Total | $ 546 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Jan. 31, 2024 | |
Investments, All Other Investments [Abstract] | |||
Securities in continuous unrealized loss position for greater than twelve months | $ 0 | $ 0 | |
Allowance for credit loss | 0 | 0 | |
Write offs of accrued interest receivables | 0 | $ 0 | |
Direct investments in privately held companies | $ 163,000,000 | $ 162,000,000 |
Financial Instruments - Sched_3
Financial Instruments - Schedule of marketable securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Investments, All Other Investments [Abstract] | ||
Marketable debt securities | $ 262 | $ 163 |
Financial Instruments - Sched_4
Financial Instruments - Schedule of Non-Marketable Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Equity Securities without Readily Determinable Fair Value, Annual Amount [Abstract] | ||
Upward adjustments | $ 0 | $ 0 |
Negative adjustments, including impairments | 0 | 0 |
Net unrealized adjustments | 0 | $ 0 |
Equity Securities without Readily Determinable Fair Value, Impairment Loss, Cumulative Amount [Abstract] | ||
Upward adjustments | 29 | |
Negative adjustments, including impairments | (114) | |
Net unrealized adjustments | $ (85) |
Financial Instruments - Sched_5
Financial Instruments - Schedule of Measured At Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Apr. 30, 2024 | Jan. 31, 2024 |
Long-term | ||
Derivative contract liabilities | $ (14) | $ (15) |
Total | 1,633 | 1,815 |
Derivative contract assets | ||
Long-term | ||
Derivative contract assets, fair value | 19 | 21 |
Commercial paper | ||
Short-term | ||
Fair Value | 141 | 159 |
Agency bonds | ||
Long-term | ||
Fair Value | 36 | |
U.S. government securities | ||
Cash equivalents: | ||
Fair Value | 12 | |
Short-term | ||
Fair Value | 54 | 70 |
Long-term | ||
Fair Value | 24 | 24 |
Corporate debt securities | ||
Cash equivalents: | ||
Fair Value | 10 | |
Short-term | ||
Fair Value | 73 | 75 |
Long-term | ||
Fair Value | 107 | 104 |
Asset-backed securities | ||
Short-term | ||
Fair Value | 25 | 28 |
Long-term | ||
Fair Value | 62 | 59 |
Agency mortgage backed securities | ||
Long-term | ||
Fair Value | 38 | 36 |
Other | ||
Short-term | ||
Fair Value | 15 | 22 |
Long-term | ||
Fair Value | 7 | 11 |
Mutual funds | ||
Long-term | ||
Long-term other assets, fair value | 107 | 100 |
Money market funds | ||
Cash equivalents: | ||
Fair Value | 592 | 693 |
Commercial paper | ||
Cash equivalents: | ||
Fair Value | 278 | 250 |
Certificates of deposit | ||
Cash equivalents: | ||
Fair Value | 83 | 80 |
Other | ||
Cash equivalents: | ||
Fair Value | 6 | |
U.S. government securities | ||
Cash equivalents: | ||
Fair Value | 12 | 92 |
Level 1 | ||
Long-term | ||
Derivative contract liabilities | 0 | 0 |
Total | 699 | 793 |
Level 1 | Derivative contract assets | ||
Long-term | ||
Derivative contract assets, fair value | 0 | 0 |
Level 1 | Commercial paper | ||
Short-term | ||
Fair Value | 0 | 0 |
Level 1 | Agency bonds | ||
Long-term | ||
Fair Value | 0 | |
Level 1 | U.S. government securities | ||
Cash equivalents: | ||
Fair Value | 0 | |
Short-term | ||
Fair Value | 0 | 0 |
Long-term | ||
Fair Value | 0 | 0 |
Level 1 | Corporate debt securities | ||
Cash equivalents: | ||
Fair Value | 0 | |
Short-term | ||
Fair Value | 0 | 0 |
Long-term | ||
Fair Value | 0 | 0 |
Level 1 | Asset-backed securities | ||
Short-term | ||
Fair Value | 0 | 0 |
Long-term | ||
Fair Value | 0 | 0 |
Level 1 | Agency mortgage backed securities | ||
Long-term | ||
Fair Value | 0 | |
Level 1 | Other | ||
Short-term | ||
Fair Value | 0 | 0 |
Long-term | ||
Fair Value | 0 | 0 |
Level 1 | Mutual funds | ||
Long-term | ||
Long-term other assets, fair value | 107 | 100 |
Level 1 | Money market funds | ||
Cash equivalents: | ||
Fair Value | 592 | 693 |
Level 1 | Commercial paper | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
Level 1 | Certificates of deposit | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
Level 1 | Other | ||
Cash equivalents: | ||
Fair Value | 0 | |
Level 1 | U.S. government securities | ||
Cash equivalents: | ||
Fair Value | 0 | |
Level 2 | ||
Long-term | ||
Derivative contract liabilities | (14) | (15) |
Total | 934 | 1,022 |
Level 2 | Derivative contract assets | ||
Long-term | ||
Derivative contract assets, fair value | 19 | 21 |
Level 2 | Commercial paper | ||
Short-term | ||
Fair Value | 141 | 159 |
Level 2 | Agency bonds | ||
Long-term | ||
Fair Value | 36 | |
Level 2 | U.S. government securities | ||
Cash equivalents: | ||
Fair Value | 12 | |
Short-term | ||
Fair Value | 54 | 70 |
Long-term | ||
Fair Value | 24 | 24 |
Level 2 | Corporate debt securities | ||
Cash equivalents: | ||
Fair Value | 10 | |
Short-term | ||
Fair Value | 73 | 75 |
Long-term | ||
Fair Value | 107 | 104 |
Level 2 | Asset-backed securities | ||
Short-term | ||
Fair Value | 25 | 28 |
Long-term | ||
Fair Value | 62 | 59 |
Level 2 | Agency mortgage backed securities | ||
Long-term | ||
Fair Value | 38 | |
Level 2 | Other | ||
Short-term | ||
Fair Value | 15 | 22 |
Long-term | ||
Fair Value | 7 | 11 |
Level 2 | Mutual funds | ||
Long-term | ||
Long-term other assets, fair value | 0 | 0 |
Level 2 | Money market funds | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
Level 2 | Commercial paper | ||
Cash equivalents: | ||
Fair Value | 278 | 250 |
Level 2 | Certificates of deposit | ||
Cash equivalents: | ||
Fair Value | 83 | 80 |
Level 2 | Other | ||
Cash equivalents: | ||
Fair Value | 6 | |
Level 2 | U.S. government securities | ||
Cash equivalents: | ||
Fair Value | 92 | |
Level 3 | ||
Long-term | ||
Derivative contract liabilities | 0 | 0 |
Total | 0 | 0 |
Level 3 | Derivative contract assets | ||
Long-term | ||
Derivative contract assets, fair value | 0 | 0 |
Level 3 | Commercial paper | ||
Short-term | ||
Fair Value | 0 | 0 |
Level 3 | Agency bonds | ||
Long-term | ||
Fair Value | 0 | |
Level 3 | U.S. government securities | ||
Cash equivalents: | ||
Fair Value | 0 | |
Short-term | ||
Fair Value | 0 | 0 |
Long-term | ||
Fair Value | 0 | 0 |
Level 3 | Corporate debt securities | ||
Cash equivalents: | ||
Fair Value | 0 | |
Short-term | ||
Fair Value | 0 | 0 |
Long-term | ||
Fair Value | 0 | 0 |
Level 3 | Asset-backed securities | ||
Short-term | ||
Fair Value | 0 | 0 |
Long-term | ||
Fair Value | 0 | 0 |
Level 3 | Agency mortgage backed securities | ||
Long-term | ||
Fair Value | 0 | |
Level 3 | Other | ||
Short-term | ||
Fair Value | 0 | 0 |
Long-term | ||
Fair Value | 0 | 0 |
Level 3 | Mutual funds | ||
Long-term | ||
Long-term other assets, fair value | 0 | 0 |
Level 3 | Money market funds | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
Level 3 | Commercial paper | ||
Cash equivalents: | ||
Fair Value | 0 | 0 |
Level 3 | Certificates of deposit | ||
Cash equivalents: | ||
Fair Value | $ 0 | 0 |
Level 3 | Other | ||
Cash equivalents: | ||
Fair Value | 0 | |
Level 3 | U.S. government securities | ||
Cash equivalents: | ||
Fair Value | $ 0 |
Equity Compensation - Schedule
Equity Compensation - Schedule of Restricted Stock Award and Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) and Performance Shares shares in Thousands | 3 Months Ended |
Apr. 30, 2024 $ / shares shares | |
Unvested restricted stock units | |
Unvested restricted stock units, beginning balance (in shares) | shares | 5,371 |
Granted (in shares) | shares | 2,280 |
Vested (in shares) | shares | (1,527) |
Canceled/Forfeited (in shares) | shares | (92) |
Performance Adjustment (in shares) | shares | (32) |
Unvested restricted stock units, ending balance (in shares) | shares | 6,000 |
Weighted average grant date fair value per share | |
Unvested restricted stock units, beginning balance (in usd per share) | $ / shares | $ 203.87 |
Granted (in usd per share) | $ / shares | 239.60 |
Vested (in usd per share) | $ / shares | 207.80 |
Canceled/Forfeited (in usd per share) | $ / shares | 205.06 |
Performance Adjustment (in usd per share) | $ / shares | 194.63 |
Unvested restricted stock units, ending balance (in usd per share) | $ / shares | $ 217.06 |
Minimum | |
Weighted average grant date fair value per share | |
Performance shares units payout (in percentage) | 75% |
Maximum | |
Weighted average grant date fair value per share | |
Performance shares units payout (in percentage) | 96% |
Equity Compensation - Narrative
Equity Compensation - Narrative (Details) shares in Thousands, $ in Millions | 3 Months Ended | |
Apr. 30, 2024 USD ($) period shares | Apr. 30, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Market capitalization | $ 2,000 | |
Share-based compensation expense | $ 149 | $ 165 |
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 | |
Restricted Stock Units (RSUs) and Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards vested in period, fair value | $ 396 | 274 |
Awards granted in period (in shares) | shares | 2,280 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted in period (in shares) | shares | 2,000 | |
Share based compensation expense | $ 127 | 130 |
Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted in period (in shares) | shares | 7 | |
Share based compensation expense | $ 6 | $ 11 |
Expected dividends | 0% | |
Common stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 1 | $ 6 |
Equity Compensation - Schedul_2
Equity Compensation - Schedule of ESPP Activity (Details) - ESPP - 1998 Employee Qualified Stock Purchase Plan - $ / shares shares in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issued shares (in shares) | 433 | 434 |
Average price of issued shares (in usd per share) | $ 164.81 | $ 163.59 |
Weighted average grant date fair value of shares granted under the ESPP (in usd per share) | $ 79.14 | $ 71.34 |
Equity Compensation - Schedul_3
Equity Compensation - Schedule of Stock Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense related to stock awards and ESPP purchases | $ 149 | $ 165 |
Tax (benefit) expense | (15) | 1 |
Stock-based compensation expense related to stock awards and ESPP purchases, net of tax | 134 | 166 |
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 | 53 | 62 |
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 | 66 | 69 |
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 | 18 | 22 |
Cost of subscription and maintenance revenue | 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 |
Cost of other revenue | 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 | $ 3 | $ 3 |
Equity Compensation - Schedul_4
Equity Compensation - Schedule of Assumption Used to Estimate the Fair Value of Stock-Based Awards (Details) - shares | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
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% | |
Range of expected volatilities, maximum (in percentage) | 42.50% | |
Expected dividends | 0% | |
Range of risk-free interest rates, minimum (in percentage) | 4.30% | |
Range of risk-free interest rates, maximum (in percentage) | 4.70% | |
Awards granted in period (in shares) | 0 | |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of expected volatilities, minimum (in percentage) | 28.70% | 40% |
Range of expected volatilities, maximum (in percentage) | 34.50% | 42.40% |
Expected dividends | 0% | 0% |
Range of risk-free interest rates, minimum (in percentage) | 4.60% | 4.30% |
Range of risk-free interest rates, maximum (in percentage) | 5.40% | 5% |
ESPP | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of expected lives (in years) | 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 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 57 | $ 60 |
Pre-tax income | 309 | $ 221 |
Unrecognized tax benefits | 267 | |
Amount of gross unrecognized tax benefits that would impact the effective tax rate, if recognized | 224 | |
Unrecognized tax benefits that would reduce valuation allowance if recognized | 43 | |
Decrease in unrecognized tax benefits in the next twelve months for statute lapse | $ 0 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Mar. 15, 2024 | Feb. 20, 2024 |
Payapps | ||
Business Acquisition [Line Items] | ||
Business acquired outstanding percentage (in percentage) | 100% | |
Payments to acquire businesses | $ 387 | |
Business combination, consideration transferred, other | 381 | |
Payapps | Prepaid Expenses and Other Current Assets and Long-Term Other Assets | ||
Business Acquisition [Line Items] | ||
Share based compensation expense | $ 6 | |
PIX | ||
Business Acquisition [Line Items] | ||
Business acquired outstanding percentage (in percentage) | 100% | |
Payments to acquire businesses | $ 266 | |
PIX | Minimum | ||
Business Acquisition [Line Items] | ||
Goodwill deductible for tax purposes | 180 | |
PIX | Maximum | ||
Business Acquisition [Line Items] | ||
Goodwill deductible for tax purposes | $ 190 |
Acquisitions - Schedule of Fair
Acquisitions - Schedule of Fair Value of Assets Acquired and Liabilities Assumed by Major Class (Details) - USD ($) $ in Millions | Apr. 30, 2024 | Mar. 15, 2024 | Feb. 20, 2024 | Jan. 31, 2024 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 4,133 | $ 491 | $ 3,653 | |
Deferred revenue and long-term deferred revenue | (6) | |||
Long-term deferred income taxes | (12) | |||
Net tangible assets | 12 | |||
Total | 647 | |||
Developed technologies | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles | 90 | |||
Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles | 67 | |||
Trade name | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles | 5 | |||
Payapps | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 300 | |||
Deferred revenue and long-term deferred revenue | (4) | |||
Long-term deferred income taxes | (12) | |||
Net tangible assets | 5 | |||
Total | 381 | |||
Payapps | Developed technologies | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles | 53 | |||
Payapps | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles | 34 | |||
Payapps | Trade name | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles | $ 5 | |||
PIX | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 191 | |||
Deferred revenue and long-term deferred revenue | (2) | |||
Long-term deferred income taxes | 0 | |||
Net tangible assets | 7 | |||
Total | 266 | |||
PIX | Developed technologies | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles | 37 | |||
PIX | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles | 33 | |||
PIX | Trade name | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles | $ 0 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Company's Intangible Assets, net (Details) - USD ($) $ in Millions | Apr. 30, 2024 | Jan. 31, 2024 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 1,913 | $ 1,721 |
Accumulated Amortization | (1,341) | (1,315) |
Net | 572 | 406 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 729 | 664 |
Accumulated Amortization | (446) | (436) |
Net | 283 | 228 |
Developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,056 | 933 |
Accumulated Amortization | (782) | (765) |
Net | 274 | 168 |
Trade names and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 121 | 116 |
Accumulated Amortization | (113) | (113) |
Net | 8 | 3 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 7 | 8 |
Accumulated Amortization | 0 | (1) |
Net | $ 7 | $ 7 |
Cloud Computing Arrangements -
Cloud Computing Arrangements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Jan. 31, 2024 | |
Capitalized Contract Cost [Line Items] | |||
Amortization | $ 13 | $ 9 | |
Cloud-based Software Hosting Arrangements | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized software development costs | 271 | $ 254 | |
Accumulated amortization | $ 96 | $ 83 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Jan. 31, 2024 | |
Goodwill [Roll Forward] | ||
Goodwill net, beginning of the period | $ 3,653 | |
Additions arising from acquisitions during the period | 491 | |
Effect of foreign currency translation and measurement period adjustments | (11) | |
Goodwill net, end of the period | 4,133 | |
Accumulated impairment losses | $ 149 | $ 149 |
Deferred Compensation (Details)
Deferred Compensation (Details) - USD ($) | 3 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Jan. 31, 2024 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Costs to obtain a contract | $ 217,000,000 | $ 210,000,000 | |
Amortization of costs to obtain a contract with a customer | 41,000,000 | $ 30,000,000 | |
Impairment losses | 0 | $ 0 | |
Prepaid expenses and other current assets | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Costs to obtain a contract | 151,000,000 | ||
Long-term other assets | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Costs to obtain a contract | 66,000,000 | ||
Rabbi Trust | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred compensation liability | 107,000,000 | 100,000,000 | |
Deferred compensation liability, current | 10,000,000 | 10,000,000 | |
Deferred compensation liability, non-current | $ 97,000,000 | $ 90,000,000 |
Computer Equipment, Software,_3
Computer Equipment, Software, Furniture, and Leasehold Improvements, Net (Details) - USD ($) $ in Millions | Apr. 30, 2024 | Jan. 31, 2024 |
Property, Plant and Equipment [Line Items] | ||
Computer equipment, software, furniture, and leasehold improvements, gross | $ 593 | $ 622 |
Less: Accumulated depreciation | (476) | (501) |
Computer equipment, software, furniture, and leasehold improvements, net | 117 | 121 |
Computer hardware, at cost | ||
Property, Plant and Equipment [Line Items] | ||
Computer equipment, software, furniture, and leasehold improvements, gross | 118 | 117 |
Computer software, at cost | ||
Property, Plant and Equipment [Line Items] | ||
Computer equipment, software, furniture, and leasehold improvements, gross | 48 | 48 |
Furniture and equipment, at cost | ||
Property, Plant and Equipment [Line Items] | ||
Computer equipment, software, furniture, and leasehold improvements, gross | 96 | 100 |
Leasehold improvements, land and buildings, at cost | ||
Property, Plant and Equipment [Line Items] | ||
Computer equipment, software, furniture, and leasehold improvements, gross | $ 331 | $ 357 |
Borrowing Arrangements - Narrat
Borrowing Arrangements - Narrative (Details) | 1 Months Ended | |||||
Nov. 30, 2022 USD ($) qtr performance_indicator_metric | Oct. 31, 2021 USD ($) | Jan. 31, 2020 USD ($) | Jun. 30, 2017 USD ($) | Jun. 30, 2015 USD ($) | Apr. 30, 2024 USD ($) | |
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 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 500,000,000 | 500,000,000 | ||||
Stated interest rate | 3.50% | |||||
Unamortized discount | $ 3,000,000 | |||||
Debt issuance costs | 5,000,000 | |||||
Proceeds from debt, net of issuance costs | 492,000,000 | |||||
Senior Notes Due December 15, 2017 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
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 | |||||
Period for issuance of audited consolidated financial statements | 90 days | |||||
Line of credit facility, outstanding borrowings | $ 0 | |||||
Debt interest rates adjustment, number of key performance indicator metrics | performance_indicator_metric | 2 | |||||
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 - Schedu
Borrowing Arrangements - Schedule of Fair Value of Market Price (Details) - Senior Notes - USD ($) | Apr. 30, 2024 | Oct. 31, 2021 | Jan. 31, 2020 | Jun. 30, 2017 | Jun. 30, 2015 |
2015 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate Principal Amount | $ 300,000,000 | $ 300,000,000 | |||
Fair value | 296,000,000 | ||||
2017 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate Principal Amount | 500,000,000 | $ 500,000,000 | |||
Fair value | 474,000,000 | ||||
2020 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate Principal Amount | 500,000,000 | $ 500,000,000 | |||
Fair value | 436,000,000 | ||||
2021 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate Principal Amount | 1,000,000,000 | $ 1,000,000,000 | |||
Fair value | $ 808,000,000 |
Borrowing Arrangements - Sche_2
Borrowing Arrangements - Schedule of Future Minimum Payments For Borrowings (Details) $ in Millions | Apr. 30, 2024 USD ($) |
Debt Disclosure [Abstract] | |
2025 (remainder) | $ 0 |
2026 | 300 |
2027 | 0 |
2028 | 500 |
2029 | 0 |
Thereafter | 1,500 |
Total principal outstanding | $ 2,300 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 3 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Jan. 31, 2024 | |
Lessee, Lease, Description [Line Items] | |||
Weighted average remaining lease term | 6 years | 6 years 2 months 12 days | |
Weighted average discount rate | 2.89% | 2.86% | |
Public income remaining lease term | 7 years 9 months 18 days | ||
Sublease income | $ 2,000,000 | $ 2,000,000 | |
Sublease income payments | 70,000,000 | ||
Sublease income payments, expect to receive, for fiscal 2025 through fiscal 2029 | 40,000,000 | ||
Sublease income payments, expect to receive, thereafter | 30,000,000 | ||
operating lease minimum lease payments | $ 0 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease remaining lease term | 1 year | ||
Lease renewal term | 1 year | ||
Optional termination period | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease remaining lease term | 66 years | ||
Lease renewal term | 8 years | ||
Optional termination period | 6 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs and Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease cost | $ 17 | $ 18 |
Variable lease cost | 4 | 4 |
Cash paid for operating leases included in operating cash flows | 23 | 28 |
Non-cash operating lease liabilities arising from obtaining operating lease right-of-use assets | 5 | 38 |
Variable lease payments | 4 | 4 |
Cost of subscription and maintenance revenue | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease cost | 2 | 2 |
Variable lease cost | 0 | 0 |
Cost of other revenue | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease cost | 0 | 1 |
Variable lease cost | 0 | 0 |
Marketing and sales | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease cost | 7 | 7 |
Variable lease cost | 2 | 2 |
Research and development | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease cost | 5 | 6 |
Variable lease cost | 1 | 1 |
General and administrative | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease cost | 3 | 2 |
Variable lease cost | $ 1 | $ 1 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Millions | Apr. 30, 2024 USD ($) |
Leases [Abstract] | |
2025 (remainder) | $ 55 |
2026 | 79 |
2027 | 58 |
2028 | 48 |
2029 | 40 |
Thereafter | 78 |
Total lease payments | 358 |
Less imputed interest | 29 |
Present value of operating lease liabilities | $ 329 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Jan. 31, 2024 | |
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current | |
Total derivative assets | $ 19 | $ 21 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current | |
Total derivative liabilities | $ 14 | $ 15 | |
Amount of gain (loss) recognized in accumulated other comprehensive income, net of tax, (effective portion) | 2 | $ (13) | |
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | 3 | 22 | |
Interest and other income, net | 0 | 2 | |
Net revenue | |||
Derivatives, Fair Value [Line Items] | |||
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | 5 | 20 | |
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 | 0 | |
Operating expenses | |||
Derivatives, Fair Value [Line Items] | |||
Amount and location of gain (loss) reclassified from accumulated other comprehensive loss into income (effective portion) | (2) | $ 2 | |
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 | 13 | 8 | |
Prepaid expenses and other current assets | Foreign exchange contracts | Derivatives not designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | 6 | 13 | |
Other accrued liabilities | Foreign exchange contracts | Foreign currency contracts designated as cash flow hedges | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative liabilities | 8 | 8 | |
Other accrued liabilities | Foreign exchange contracts | Derivatives not designated as hedging instruments | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative liabilities | $ 6 | $ 7 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | Apr. 30, 2024 | Jan. 31, 2024 |
Derivatives, Fair Value [Line Items] | ||
Net gain expected to be recognized in next 24 months | $ 25 | |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 1,480 | $ 1,250 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ 325 | $ 455 |
Derivative Instruments - Effect
Derivative Instruments - Effects of Derivative Instruments on Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Derivatives, Fair Value [Line Items] | ||
Net revenue | $ 1,417 | $ 1,269 |
Marketing and sales | 469 | 456 |
Research and development | 346 | 327 |
General and administrative | 155 | 132 |
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | 3 | 22 |
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 | 5 | 20 |
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 |
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 | 0 |
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) | 1 |
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 | (1) | 0 |
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 | 0 | 1 |
Subscription revenue | ||
Derivatives, Fair Value [Line Items] | ||
Net revenue | 1,330 | 1,193 |
Maintenance revenue | ||
Derivatives, Fair Value [Line Items] | ||
Net revenue | 11 | 14 |
Cost of subscription and maintenance revenue | ||
Derivatives, Fair Value [Line Items] | ||
Net revenue | 1,341 | 1,207 |
Cost of revenue | $ 100 | $ 96 |
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 | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 1,855 | $ 1,145 |
Common shares issued under stock plans | (62) | (21) |
Stock-based compensation expense | 151 | 160 |
Settlement of liability-classified restricted common shares | 3 | 1 |
Net income | 252 | 161 |
Other comprehensive loss | (29) | (15) |
Repurchase and retirement of common shares | (9) | (534) |
Ending balance | $ 2,161 | $ 897 |
Common Stock Repurchase Program | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Common stock repurchased and retired (in shares) | 33 | 2,666 |
Repurchased shares of its common stock on the open market, average repurchase price per share (in usd per share) | $ 254.81 | $ 199.36 |
September 2016 Common Stock Repurchase Program | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Shares remained available for repurchase under repurchase plans (in shares) | 2 | |
November 2022 Common Stock Repurchase Program | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Amount remained available for repurchase under repurchase plans | $ 4,730 | $ 5,000 |
Common stock and additional paid-in capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 214,000 | 215,000 |
Beginning balance | $ 3,802 | $ 3,325 |
Common shares issued under stock plans (in shares) | 1,000 | 2,000 |
Common shares issued under stock plans | $ (62) | $ (21) |
Stock-based compensation expense | 151 | 160 |
Settlement of liability-classified restricted common shares | $ 3 | $ 1 |
Repurchase and retirement of common shares (in shares) | 0 | (3,000) |
Repurchase and retirement of common shares | $ 0 | $ (97) |
Ending balance (in shares) | 215,000 | 214,000 |
Ending balance | $ 3,894 | $ 3,368 |
Accumulated other comprehensive loss | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (234) | (185) |
Other comprehensive loss | (29) | (15) |
Ending balance | (263) | (200) |
Accumulated deficit | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (1,713) | (1,995) |
Net income | 252 | 161 |
Repurchase and retirement of common shares | (9) | (437) |
Ending balance | $ (1,470) | $ (2,271) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,855 | $ 1,145 |
Other comprehensive income (loss) before reclassifications | (26) | 0 |
Pre-tax gains reclassified from accumulated other comprehensive loss | (3) | (22) |
Tax effects | 0 | 7 |
Total other comprehensive loss | (29) | (15) |
Ending balance | 2,161 | 897 |
Accumulated other comprehensive loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (234) | (185) |
Total other comprehensive loss | (29) | (15) |
Ending balance | (263) | (200) |
Net Unrealized Gains (Losses) on Derivative Instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 23 | 64 |
Other comprehensive income (loss) before reclassifications | 5 | 7 |
Pre-tax gains reclassified from accumulated other comprehensive loss | (3) | (22) |
Tax effects | 0 | 2 |
Total other comprehensive loss | 2 | (13) |
Ending balance | 25 | 51 |
Net Unrealized Gains (Losses) on Available-for-Sale Debt Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 20 | 18 |
Other comprehensive income (loss) before reclassifications | (2) | 2 |
Pre-tax gains reclassified from accumulated other comprehensive loss | 0 | 0 |
Tax effects | 0 | 0 |
Total other comprehensive loss | (2) | 2 |
Ending balance | 18 | 20 |
Defined Benefit Pension Components | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (24) | (19) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Pre-tax gains reclassified from accumulated other comprehensive loss | 0 | 0 |
Tax effects | 0 | 0 |
Total other comprehensive loss | 0 | 0 |
Ending balance | (24) | (19) |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (253) | (248) |
Other comprehensive income (loss) before reclassifications | (29) | (9) |
Pre-tax gains reclassified from accumulated other comprehensive loss | 0 | 0 |
Tax effects | 0 | 5 |
Total other comprehensive loss | (29) | (4) |
Ending balance | $ (282) | $ (252) |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Computation of Net Income Per Share Amounts (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Numerator: | ||
Net income | $ 252 | $ 161 |
Denominator: | ||
Denominator for basic net income per share—weighted average shares (in shares) | 215 | 215 |
Effect of dilutive securities (in shares) | 2 | 1 |
Denominator for dilutive net income per share (in shares) | 217 | 216 |
Basic net income per share (in usd per share) | $ 1.17 | $ 0.75 |
Diluted net income per share (in usd per share) | $ 1.16 | $ 0.75 |
Net Income Per Share - Narrativ
Net Income Per Share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Earnings Per Share [Abstract] | ||
Potentially dilutive shares excluded from the computation of diluted net income per share (in shares) | 48 | 588 |
Segments (Details)
Segments (Details) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 USD ($) segment | Jan. 31, 2024 USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of operating segments | segment | 1 | |
Total long-lived assets | $ 331 | $ 345 |
Total Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 224 | 236 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 210 | 221 |
Other Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 14 | 15 |
Europe, Middle East, and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 64 | 63 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 43 | $ 46 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | May 20, 2024 USD ($) |
Subsequent Event | Aether Media, Inc | |
Subsequent Event [Line Items] | |
Consideration transferred | $ 131 |